August 7, 2020

Consolidated Financial Results
for the Three Months Ended June 30, 2020
(Japanese Accounting Standards)
Name of the Listed Company: Nitta Gelatin Inc.
Listing:First Section 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: August 7, 2020
Scheduled date to commence dividend payments: Supplementary explanatory materials prepared:No
Explanatory meeting:
No(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2020
(from April 1, 2020 to June 30, 2020)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Three months ended
June 30, 2020
June 30, 2019

Millions of yen%

Operating income

Ordinary income

Net income
attributable toowners of the parent

Millions of yen

Millions of yen%

Millions of yen

304
367(17.3)(1.6)

212253%

7,413(19.9)
343
(8.5)
9,260
2.437430.6
Note: Comprehensive income
For the three months ended June 30, 2020: ¥301 million, 491.9%
For the three months ended June 30, 2019: ¥50 million, (72.2)%

Net income
per share
Three months ended
June 30, 2020
June 30, 2019

Diluted net income
per share

Yen

Yen

11.68
13.80
Note: Diluted net income per share is not disclosed due to the absence of latent shares with dilution effect.

(2) Consolidated financial position
As ofJune 30, 2020
March 31, 2020

Total assets

Net assets

Millions of yen

Millions of yen

32,54333,55117,449
17,461

Reference: Equity
As of June 30, 2020:¥15,615 million
As of March 31, 2020: ¥15,667 million

Equity ratio%

48.0
46.7%

(16.3)
422.3

2. Cash dividends
Cash dividends per shareFirst quarter

Second quarter

Yen

Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
Fiscal year ending March31, 2021 (Forecasts)

Third quarter

Yen-

Fiscal year-end

Yen

Annual

Yen

Yen

6.00

-

6.00

12.00

6.00

-

6.00

12.00

-

Note: Changes to most recent dividend forecasts: None

3. Consolidated financial forecasts for the fiscal year ending March 31, 2021
(from April 1, 2020 to March 31, 2021)(Percentages indicate year-on-year changes.)

OperatingincomeNet sales

Six months ending
September 30, 2020
Fiscal year ending
March 31, 2021

Ordinary income

Net income
attributable toowners of theparent

Net income
per share

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%15,500(16.8)

600(29.1)

600(38.8)

500(23.6)

27.66

31,500

(8.8)

1,300

(23.1)

1,200(33.3)

800-44.26

Yen

Note: Changes to most recent consolidated financial forecasts: None

(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 financialstatements: No(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: Nob. Changes in accounting policies due to reasons other than a. above: Noc. Changes in accounting estimates: No
d. Restatement of revisions: No(4) Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of June 30, 2020
18,373,974 shares
As of March 31, 2020
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of June 30, 2020
299,467 shares
As of March 31, 2020
167 sharesc. Average number of shares
For the three months ended June 30, 2020
18,181,882 shares
For the three months ended June 30, 201918,373,811 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
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.
These statements do not guarantee that the Company will achieve its earnings forecasts. In addition,
actual business and other results may differ substantially due to various factors. For details on theconditions assumed and the 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 thisreport.

Attachment 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. Quarterly Consolidated Financial Statements and Key Notes ············································ 5(1)Consolidated Balance Sheets ··············································································· 5(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ··· 7
Consolidated Statements of Income(First quarter consolidated cumulative accounting period) ·········································· 7
Consolidated Statements of Comprehensive Income(First quarter consolidated cumulative accounting period) ············································· 8(3)Notes to Quarterly Consolidated Financial Statements ················································· 9(Note Concerning Going Concern Assumption) ·························································· 9(Note Concerning Significant Changes in Shareholders’ Equity) ······································· 9(Additional Information) ······················································································ 9(Segment Information) ························································································ 91

1. Qualitative Information Concerning Quarterly Financial Statements(1) Description of Business Results
In the first quarter of the fiscal year ending March 31, 2021 (April 1 to June 30, 2020), the stateof the global economy became very challenging, as economic activity slowed due to the global
spread of COVID-19. The Japanese economy also suffered major setbacks as it was forced toundergo self-imposed restrictions on economic activity mainly due to the government’s state ofemergency declaration. From now on, balancing measures to prevent the spread of infection withsocio-economic activities will become a challenge.
The Group believes that preventing the spread of infection to business partners and employees
is a top priority. Accordingly, the Group worked hard to maintain and continue various businessactivities such as production, sales and distribution while proactively adopting telework, flexible
work arrangements and web conferences in order to help its business partners and employees
avoid the so-called three Cs: closed spaces, crowded places, and close-contact settings.
In this environment, the food and health food industries, the Group’s main business partners,
were impacted substantially by increases in voluntary quarantine and telework as well as requests
for eating and drinking establishments to suspend business due to the spread of COVID-19.
Net sales decreased 19.9% year on year to ¥7,413 million due to the impact of its withdrawal
from the collagen casing business in the previous quarter, operating income decreased 8.5% to¥343 million, ordinary income decreased 17.3% to ¥304 million, mainly due to recording adecrease in equity in earnings of affiliates, and net income attributable to owners of parent
decreased 16.3% to ¥212 million.
The Nitta Gelatin Group's collagen business has become the Company’s only reporting
segment, but an overview of the performance of each sales category is as follows:
Food solutions
In Japan, sales of gelatin for use in confectionaries and cooking rose as opportunities to makedesserts at home increased due to the spread of COVID-19. On the other hand, sales of items
such as gummy candy and jelly confectionaries decreased, as did sales in the food-service
industry which includes hotels, restaurants and pubs. Sales for use in delicatessen items remained
unchanged from the previous fiscal year despite a decrease in demand for lunches at convenience
stores in urban centers due to telework.
Overseas, sales to the markets for gummy candy, jelly confectionaries and other applications
were solid in the North America region due to the increased stay-at-home hours. Meanwhile,
sales of collagen casings decreased year on year due to the substantial impact from withdrawal
from the collagen casing business in the previous fiscal year.
As a result, overall sales in the food solutions category decreased 31.2% year on year to¥2,850 million.
Health support
2

In Japan, sales for health and beauty applications decreased. Overseas, sales of collagen peptide
decreased due to a decline in sales of health and beauty supplements in addition to an excess
supply of collagen peptide in the North America region. Meanwhile, sales of gelatin for use incapsules for health foods remained unchanged from the previous fiscal year. The Asia region saw
sales increase due to increased sales of Halal products for capsules and sales promotions toadvertise the functionality of collagen peptide for health and beauty applications. In India,
demand for capsules for pharmaceutical and health food applications was solid.
As a result, overall sales in the health support category decreased 9.2% year on year to ¥3,293
million.
Specialties
Overall sales decreased 14.8% year on year to ¥1,269 million mainly due to a decrease in sales of
packaging adhesives.

(2) Description of Financial Position(Assets)
Total assets amounted to ¥32,543 million at June 30, 2020, ¥1,008 million lower than at March
31, 2020. This was mainly attributable to decreases in cash and deposits of ¥286 million, notes
and accounts receivable–trade of ¥566 million, and machinery, equipment and vehicles, net of¥143 million.
(Liabilities)
Total liabilities stood at ¥15,094 million at June 30, 2020, ¥996 million lower than at March 31,
2020. This was mainly attributable to decreases in notes and accounts payable–trade of ¥81
million, short-term loans payable of ¥91 million, and long-term loans payable (including current
portion of long-term loans payable) of ¥600 million.
(Net assets)
Net assets amounted to ¥17,449 million at June 30, 2020, ¥11 million lower than at March 31,2020. This was mainly attributable to a decrease of ¥199 million in purchase of treasury stock,which was partially offset by increases in retained earnings of ¥102 million, remeasurements ofdefined benefit plans of ¥38 million, and non-controlling interests of ¥40 million.
As a result, the equity ratio stood at 48.0% at March 31, 2019 compared with 46.7% at March31, 2020.

3

(3) Description of Consolidated Business Forecasts and Other Forward-looking
Information
The consolidated earnings forecast for the fiscal year ending March 31, 2021 is unchanged fromthe consolidated earnings forecast announced on June 24, 2020 in the “Consolidated FinancialResults for the Fiscal Year Ended March 31, 2020.”
Actual business and other results may differ substantially from projections due to variousfactors.

4

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

Fiscal 2020
(As of March 31, 2020)
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

5

1Q Fiscal 2021
(As of June 30, 2020)

1,414
7,677
5,674
1,284
2,786
499
(15)
19,322

1,128
7,111
6,209
1,218
2,253
542
(15)
18,448

3,354
2,779
3,049
9,183

3,285
2,635
3,085
9,005

300
220
521

285
228
514

2,883
1,746(105)4,524
14,22933,551

2,887
1,791
(104)
4,575
14,09532,543

(Millions of yen)

Fiscal 2020
(As of March 31, 2020)
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
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on other available-for-salesecurities
Deferred gains (losses) 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

6

1Q Fiscal 2021
(As of June 30, 2020)

3,617
1,844
2,358
107
219
2,525
10,672

3,536
1,753
2,180
159
339
2,139
10,107

3,225
1,647
545
5,417
16,090

2,802
1,643
540
4,987
15,094

3,144
2,966
9,166(0)15,2783,144
2,9669,269(200)
15,180

920

931

(47)
(346)
(137)
389
1,793
17,461
33,551

(19)
(377)
(98)
434
1,833
17,44932,543

(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Consolidated Statements of Income(First quarter consolidated cumulative accounting period)(Millions of yen)Three Months Ended
June 30, 2019
(From April 1, 2019
to June 30, 2019)
9,260
7,348

Net sales
Cost of sales

Three Months Ended
June 30, 2020
(From April 1, 2020
to June 30, 2020)
7,413
5,838

Gross profit on sales

1,912

1,575

Selling, general and administrative expenses

1,537

1,232

Operating income

374343Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Other0182235019527

Total non-operating income

7752

42
39
23654
18491

367

304

00

Non-operating expenses
Interest expenses
Foreign exchange losses
OtherTotal non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of noncurrent assets
Total extraordinary losses

00

Income before provision for income taxes

367

304

Income taxes

8666

Net income

280237Net income attributable to non-controlling interests

27

25

Net income attributable to owners of the parent

253

212

7

Consolidated Statements of Comprehensive Income(First quarter consolidated cumulative accounting period)(Millions of yen)Three Months Ended
June 30, 2019
(From April 1, 2019
to June 30, 2019)280

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

8Three Months Ended
June 30, 2020
(From April 1, 2020
to June 30, 2020)
237

(111)

11(9)
(204)
83

57
(23)
38

11(19)

(229)
50

63
301

71
(20)

257
43

(3) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
The Company purchased 299,300 shares of treasury stock based on a resolution at the Boardof Directors meeting held on March 27, 2020. As a result, treasury stock increased ¥199
million in the first quarter of the year ending March 31, 2021, resulting in a balance of ¥200
million as of June 30, 2020.
The purchase of treasury stock in accordance with the aforementioned resolution ended onMay 29, 2020.
(Additional Information)
There are no major changes to the assumptions, including those about the end of COVID-19,
that were included in the “Additional Information” section of the Annual Securities Report forthe Fiscal Year Ended March 31, 2020.
(Segment Information)
I. First three months of the fiscal year ended March 31, 2020
(From April 1, 2019 to June 30, 2019)
The Nitta Gelatin Group's collagen business has become the Company’s only reporting
segment, so information is omitted.
II. First three months of the fiscal year ending March 31, 2021
(From April 1, 2020 to June 30, 2020)
The Nitta Gelatin Group's collagen business has become the Company’s only reporting
segment, so information is omitted.

9