November 14, 2022

Consolidated Financial Resultsfor Six Months Ended September 30, 2022
(Japanese Accounting Standards)
Name of the Listed Company: Nitta Gelatin Inc.
Listing:
Prime Market of Tokyo Stock Exchange
Stock code:
4977
URL:
http://www.nitta-gelatin.co.jp
Representative:
Koichi Ogata, Representative Director and President
Contact Person:
Norifumi Nagaoka, Director and Executive Officer;
General Manager of General Management Division
Tel: +81-72-949-5381
Scheduled date to file Quarterly Securities Report: November 14, 2022
Scheduled date to commence dividend payments: December 5, 2022
Supplementary explanatory materials prepared:
Yes
Explanatory meeting:
No(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for six months ended September 30, 2022
(April 1, 2022 to September 30, 2022)(1) Consolidated operating results
Net sales
Six months ended
September 30, 2022
September 30, 2021

Millions of yen%

Operating income

Ordinary income

Net income
attributable toowners of the parent

Millions of yen

Millions of yen%

Millions of yen

133.5
7.4

911
374

%

19,179
29.0
1,360
129.3
1,625
14,863
(2.2)
593
(8.4)
696
Note: Comprehensive income
For the six months ended September 30, 2022: ¥2,183 million (168.6%)
For the six months ended September 30, 2021: ¥812 million (52.1%)

Earnings per share
Six months ended
September 30, 2022
September 30, 2021

Yen

Diluted earnings per
share
Yen

50.33
—
20.69
—
Note: Diluted earnings per share is not disclosed due to the absence of latent shares with dilution effect.

%

143.6
6.3

(2) Consolidated financial position
As of
September 30, 2022
March 31, 2022

Total assets

Net assets

Millions of yen

Millions of yen

40,47837,41022,596
20,562Equity ratio
%

48.5
48.3

Reference: Equity
As of September 30, 2022: ¥19,637 million
As of March 31, 2022: ¥18,082 million

2. Cash dividends
Cash dividends per share
Second quarter
Third quarter
Fiscal year-end

First quarter
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
Fiscal year ending
March 31, 2023 (Forecasts)

Annual

Yen

Yen

Yen

Yen

Yen

Yen

Yen

Yen

Yen

Yen

―

7.00

―

7.00

14.00

―

7.00

Note: Changes to most recent dividend forecasts: Yes

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2023
(April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)

Net sales

Full-year

Operating income

Net income attributable Earnings per
to owners of the parent
share

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

39,000

22.7

2,600

66.6

2,900

67.2

1,400

92.7

77.21

Note: Changes to most recent consolidated financial forecasts: Yes

Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in achange in the scope of consolidation): None
New:
None
Excluded:None(2) Adoption of special accounting methods for the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
a. Changes in accounting policies due to revisions to accounting standards and other guidelines: Noneb. Changes in accounting policies due to reasons other than a. above: Nonec. Changes in accounting estimates: None
d. Restatement of revisions: None(4) Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of September 30, 2022:
18,373,974 shares
As of March 31, 2022:
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of September 30, 2022:
240,939 shares
As of March 31, 2022:
268,739 sharesc. Average number of shares
For the six months ended September 30, 2022:
For the six months ended September 30, 2021:

18,113,178 shares
18,087,707 shares* This financial report falls outside the scope of quarterly review procedures by Certified Public Accountantsor the independent auditor.
* Proper use of earnings forecasts, and other special matters(Note concerning forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Thesestatements do not guarantee that the Company will achieve its earnings forecasts. In addition, actual businessand other results may differ substantially due to various factors. For details on the conditions assumed andthe cautionary notes and items in the financial forecasts, please refer to “(3) Description of Consolidated
Business Forecasts and Other Forward-looking Information” in “1. Qualitative Information Concerning
Quarterly Financial Statements” on page 4 of the Attachment to this report.

Contents
1. Qualitative Information Concerning Quarterly Financial Statements ································· 2(1)Description of Business Results ············································································ 2(2)Description of Financial Position ·········································································· 3(3)Description of Consolidated Business Forecasts and Other Forward-looking Information ······· 4

2. Basic Approach to Selection of Accounting Standard ······················································· 4
3. Quarterly Consolidated Financial Statements and Key Notes ··········································· 6(1)Consolidated Balance Sheets ··············································································· 6(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ··· 8Consolidated Statements of Income
First half consolidated accounting period ······························································ 8Consolidated Statements of Comprehensive Income
First half consolidated accounting period ······························································ 9(3)Consolidated Statements of Cash Flows ································································ 10(4)Notes to Quarterly Consolidated Financial Statements ··············································· 12(Note Concerning Going Concern Assumption) ······················································· 12(Note Concerning Significant Changes in Shareholders’ Equity) ··································· 12(Additional Information) ·················································································· 12(Segment Information) ···················································································· 12

11. Qualitative Information Concerning Quarterly Financial Statements(1) Description of Business Results
During the six months ended September 30, 2022, the world economy experienced rising
uncertainty amid inflationary concerns coupled with the protraction in the situation in Ukraine.
Nevertheless, there was positive developments with the COVID-19 pandemic as impacts eased
and there was a moderate recovery. The situation surrounding the Nitta Gelatin Group remained
challenging due to worldwide disruptions in the supply chain, soaring raw materials and energy
prices, among other factors.
In June 2022, the Group announced a business strategy containing the 10-year vision of“Helping improve people’s quality of life with collagen” and declared as specific measures a“Shift away from general-purpose gelatin products to high-value-added collagen peptides,
concentrating resources on markets with high growth potential to improve profitability.”
Under this business strategy, the Group worked to provide a stable supply of products in order
to meet rampant demand from customers in the Food Solutions, Health Support, and Specialties
domains, and took steps to revise product prices as appropriate. In the health support category, theGroup worked to increase sales by rebranding and strengthening marketing of collagen healthfoods for general consumers. In addition, we have also expanded investor relations activities,
including newly disseminating information through analyst reports, so as to foster deeper
understanding of the Company’s business lines and business strategy among investors.
As a result of the above, net sales increased 29.0% year on year to ¥19,179 million driven bysales growth in each domain and foreign exchange effects on overseas sales. Operating income
rose 129.3% year on year to ¥1,360 million underpinned by sales growth overseas, ordinary
income increased 133.5% to ¥1,625 million on foreign exchange gains, and as a result, net
income attributable to owners of the parent increased 143.6% to ¥911 million.
The Nitta Gelatin Group's collagen business is the Company’s only reporting segment. An
overview of the performance of each sales category is as follows:
Food Solutions
In the food solutions category, sales were strong in Japan while sales also increased in North
America, leading to an increase in net sales overall.
In Japan, sales of gummy candies by customers remained positive, leading to increased net
sales. Net sales also rose thanks to increased sales of gelatin for industrial-use soups andseasonings following the recovery in demand in the food service industry and growing sales toworkplace cafeterias in the industrial-use segment. Meanwhile, net sales for convenience store
delicatessen items declined due to sluggish sales by major customers.
Overseas, net sales increased on robust demand for food applications in North America.
As a result, overall sales in the food solutions category increased 24.0% year on year to ¥7,539
million.

2

Health Support
In the health support category, overall net sales rose amid the increase in sales of collagen peptide
for health and beauty applications overseas.
In Japan, net sales of collagen peptide for health and beauty applications was roughly
unchanged year on year due to sluggish sales of collagen products by customers, but net sales ofgelatin for capsules increased on strong demand. Also, in the direct sales business, which sells
collagen health foods to general consumers using direct marketing, net sales increased asstrengthened advertising was a success.
Overseas, sales of collagen peptide were strong on robust demand in North America.
Meanwhile, in Asia, sales of collagen peptide for health and beauty applications that advertisefunctionality remained robust. Furthermore, net sales of gelatin for capsules rose amid rising
health and prevention awareness during the COVID-19 pandemic in North America and India.
As a result, overall sales in the health support category increased 27.9% year on year to ¥9,098
million.
Specialties
In the specialties category, overall net sales increased by 52.4% year on year to ¥2,542 million
amid the continued increase in net sales of calcium phosphate, a by-product, owing to risingdemand from feed and fertilizer applications and market prices.

(2) Description of Financial Position
1. Assets, Liabilities and Net Assets(Assets)
Total assets amounted to ¥40,478 million at September 30, 2022, ¥3,067 million higher than at
March 31, 2022. This was mainly attributable to a decrease in cash and deposits of ¥878 million,
compared to increases in trade notes and accounts receivable of ¥426 million, inventories of¥2,569 million, and property, plant and equipment of ¥500 million.
(Liabilities)
Total liabilities stood at ¥17,882 million at September 30, 2022, ¥1,033 million higher than at
March 31, 2022. This was mainly attributable to a decrease in other current liabilities of ¥1,086
million, compared to increases in notes and accounts payable—trade of ¥1,052 million, income
taxes payable of ¥266 million, and long-term loans payable of ¥728 million (including loans
repayable within one year).
(Net assets)
Net assets amounted to ¥22,596 million at September 30, 2022, ¥2,033 million higher than at
March 31, 2022. This was mainly attributable to increases in retained earnings of ¥784 million,
foreign currency translation adjustments of ¥836 million, and non-controlling interests of ¥478
3

million.
Furthermore, the equity ratio stood at 48.5%, compared with 48.3% at March 31, 2022.
2. Cash Flows
Cash and cash equivalents (“cash”) as of September 30, 2022 was ¥2,133 million, down ¥897
million from March 31, 2022.
Cash flows for each activity for the six months ended September 30, 2022 and reasons are as
follows.
(Cash flows from operating activities)
Operating activities provided net cash of ¥490 million, compared to ¥332 million in the previous
six months ended September 30, 2021. The main components were income before provision forincome taxes of ¥1,619 million, depreciation and amortization of ¥703 million, and increase ininventories of ¥1,863 million.
(Cash flows from investing activities)
Investing activities used net cash of ¥1,678 million, compared to ¥522 million in the previous six
months ended September 30, 2021. This was mainly attributable to ¥1,647 million in purchase ofproperty, plant and equipment.
(Cash flows from financing activities)
Financing activities generated net cash of ¥211 million, compared to ¥1,044 million used in theprevious six months ended September 30, 2021. The main components were proceeds fromlong-term loans payable of ¥1,716 million, repayment of long-term loans payable of ¥1,027
million, net decrease in short-term loans payable of ¥226 million, and cash dividends paid of¥126 million.

(3) Description of Consolidated Business Forecasts and Other Forward-looking
Information
In regard to the consolidated business forecasts and dividend forecast for the fiscal year ending
March 31, 2023, please refer to the “Notice Regarding Differences between Forecast and Actual
Consolidated Financial Results for the First Half of FY2023, Revisions to Full-Year Forecast ofConsolidated Financial Results and Revisions to Dividend Forecast” released today.
Actual business and other results may differ substantially from projections due to various
factors.

2. Basic Approach to Selection of Accounting Standard
The Nitta Gelatin Group plans to prepare its consolidated financial statements based on Japanese
accounting standards in the near future. This is in consideration of the need to ensure that the4consolidated financial statements can be readily compared between different periods and different
companies.
Looking ahead, considering its management policies and various conditions in Japan andabroad, Nitta Gelatin plans to examine the adoption of International Financial ReportingStandards (IFRS). In doing so, the Group will take into account trends such as the adoption of
IFRS by its peer companies.

53. Quarterly Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Millions of yen)

Fiscal 2022
(As of March 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

6

1H Fiscal 2023
(As of September 30, 2022)

3,046
7,389
5,955
1,396
3,104
588
(16)
21,465

2,167
7,815
6,715
1,550
4,760
887
(8)
23,888

3,409
2,474
4,532
10,416

3,685
2,622
4,608
10,916

232
275
507

243
276
519

3,363
1,775
(117)
5,021
15,94537,410

3,419
1,871
(138)
5,153
16,58940,478(Millions of yen)

Fiscal 2022
(As of March 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Other

1H Fiscal 2023
(As of September 30, 2022)

2,745
2,271
1,909
171
224
3,399

3,797
2,323
2,059
437
209
2,313

Total current liabilities
Noncurrent liabilities
Long-term loans payable
Net defined benefit liability
Other

10,721

11,140

3,573
1,560
992

4,151
1,630
958

Total noncurrent liabilities
Total liabilities
Net Assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

6,126
16,8486,741
17,882

3,144
2,965
10,181
(179)

3,144
2,964
10,966(160)

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on other available-for-salesecurities
Deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

16,112

16,915

1,231

1,199

46
540
151
1,969
2,479
20,56237,410

71
1,376
74
2,722
2,958
22,59640,4787

(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Consolidated Statements of Income(First half consolidated accounting period)(Millions of yen)

Six Months Ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)
14,863
11,687

Net sales
Cost of sales

Six Months Ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
19,17914,576Gross profit on sales

3,175

4,603

Selling, general and administrative expenses

2,582

3,243

Operating income

593

1,360

Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Other

1
39
28
69
29

1
33
29
275
34

Total non-operating income

169

373

Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other

53
8
4

72
29
5

66

107

696

1,625

0

0

0

0

0
52

—
6

52

6

Income before provision for income taxes

644

1,619

Income taxes

190

424

Net income

453

1,195

Net income attributable to non-controlling interests

79

283

Net income attributable to owners of the parent

374

911

Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Total extraordinary gains
Extraordinary losses
Loss on sale of noncurrent assets
Loss on retirement of noncurrent assets
Total extraordinary losses

8Consolidated Statements of Comprehensive Income(First half consolidated accounting period)(Millions of yen)

Six Months Ended
September 30, 2021
(From April 1, 2021
to September 30, 2021)
453

Net income
Other comprehensive income
Valuation difference on other available-for-salesecurities
Deferred gains on hedges
Foreign currency translation adjustments
Pension liability adjustment
Share of other comprehensive losses of associates
accounted for using equity method
Total other comprehensive income
Total
comprehensive income
Comprehensive
income attributable to:
Owners of the parent
Non-controlling interests

9

Six Months Ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
1,195

256

(31)

(16)
38
15
65

21
958
(87)
126

359
812

987
2,183

734
78

1,664
518

(3) Consolidated Statements of Cash Flows(Millions of yen)

Six Months Ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)
Cash flows from operating activities
Income before provision for income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Equity in losses of affiliates
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividends income received
Interest paid
Income taxes (paid) or refund
Net cash provided by operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from the sale of property, plant and equipment
Purchase of intangible assets
Payments for retirement of property, plant and equipment
Purchase of investment securities
Other
Net cash used in investing activities

10

Six Months Ended
September 30, 2022
(From April 1, 2022 toSeptember 30, 2022)

644
665
23
(0)
(35)
(69)
(41)
53
(6)
8
(0)
52
561
(732)
(461)
28
(231)
459
41
(52)
(116)
332

1,619
703
28
(9)
(27)
0
(34)
72
(95)
29
(0)
6
79
(1,863)
490
(0)
(266)
731
35
(71)
(205)
490

(12)
26
(470)
1
(14)
(47)
(4)
0
(522)

(32)
16
(1,647)
0
(8)
—
(5)
(0)
(1,678)(Millions of yen)

Six Months Ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from sale-and-leaseback transactions
Repayments of lease obligations
Cash dividends paid
Cash dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

11

258
—
(1,142)
77
(98)
(108)
(30)
(1,044)10(1,225)
3,998
2,772

Six Months Ended
September 30, 2022
(From April 1, 2022 toSeptember 30, 2022)
(226)
1,716
(1,027)
21
(105)
(126)
(39)
211
79
(897)
3,030
2,133

(4) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
The Company disposed of 27,800 shares of treasury stock effective August 5, 2022 as restricted
share-based remuneration based on a resolution at the Board of Directors meeting held on July 21,
2022.
As a result, treasury stock decreased by ¥18 million and capital surplus by ¥1 million in thefirst half of the year ending March 31, 2023.
(Additional Information)
There have been no material changes to the assumptions regarding the impact of the COVID-19
pandemic set out in the (Material Accounting Estimates) of the Securities Report for the previous
fiscal year.
(Segment Information)
Segment Information
I. Six Months Ended September 30, 2021 (From April 1, 2021 to September 30, 2021)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
II. Six Months Ended September 30, 2022 (From April 1, 2022 to September 30, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.

12