May 13, 2021

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
(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 of General Shareholders’ Meeting: June 29, 2021
Scheduled date to file Securities Report:
June 29, 2021
Scheduled date to commence dividend payments: June 30, 2021
Supplementary explanatory materials prepared:
Yes
Explanatory meeting:
No(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2021
(April 1, 2020 to March 31, 2021)(1) Consolidated operating results
Net sales
Fiscal year ended
March 31, 2021
March 31, 2020

Millions of yen%

Operating income

Ordinary income

Net income
attributable toowners of the parent

Millions of yen

Millions of yen%

Millions of yen

1,364
1,798

(24.1)
117.1

742
(694)

%

30,550(11.6)
1,356(19.8)
34,543
(5.3)
1,690
88.2
Note: Comprehensive income
For the fiscal year ended March 31, 2021 ¥1,853 million (—)%
For the fiscal year ended March 31, 2020 ¥60 million (–87.7%)

Earnings (loss)
per share
Fiscal year ended
March 31, 2021
March 31, 2020

Yen

Diluted earnings
per share

Return on
equity (ROE)

Yen

40.99
—
(37.79)—Reference: Equity in earnings of affiliates
For the fiscal year ended March 31, 2021: ¥9 million
For the fiscal year ended March 31, 2020: ¥155 million

Ordinary income/ Total assets

%

4.6
(4.4)

Operating income/ Net sales

%

4.0
5.0

%

—
—

%

4.4
4.9

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

As ofMarch 31, 2021
March 31, 2020

34,91533,551

Net assets per share

Equity ratio%

Yen18,873
17,46148.1
46.7

929.18852.71

Net cash provided byoperating activities

Net cash used ininvesting activities

Net cash used infinancing activities

Cash and cash
equivalents at end ofyear

Millions of yen

Millions of yen

Millions of yen

(897)
(889)

(31)
(1,739)Reference: Equity
As of March 31, 2021: ¥16,794 million
As of March 31, 2020: ¥15,667 million(3) Consolidated cash flows

Fiscal year ended
March 31, 2021
March 31, 2020

3,509
1,969

Millions of yen

3,998
1,381

2. Cash dividends(consolidated)

Dividends
on netassetsMillions of yen

%

%

12.00

220

(31.8)

1.4

6.00

12.00

216

29.3

1.3

7.00

14.00

Cash dividends per share

Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
(Forecasts)

Total
amount ofdividends

First
quarter

Secondquarter

Third
quarter

Fiscalyear-end

Annual

Yen

Yen

Yen

Yen

Yen

—

6.00

—

6.00

—

6.00

—

—

7.00

—

Payoutratio(consolidated)

28.1

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2022
(April 1, 2021 to March 31, 2022)(Percentages indicate year-on-year changes.)

Net sales

Six months ending
September 30, 2021
Fiscal year ending
March 31, 2022

Operating income Ordinary income

Net income
attributable toowners of theparentEarnings per
share

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

14,200

(6.6)

600

(7.3)

600

(7.5)

300

(14.8)

16.60

29,500

(3.4)

1,350

(0.5)

1,350

(1.0)

900

21.3

49.79

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) 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
(3) Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2021:
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 March 31, 2021:
299,467 shares
As of March 31, 2020:
167 sharesc. Average number of shares
For the fiscal year ended March 31, 2021: 18,107,546 shares
For the fiscal year ended March 31, 2020: 18,373,810 shares(Reference) Summary of non-consolidated operating results
1. Non-consolidated financial results for the fiscal year ended March 31, 2021
(April 1, 2020 to March 31, 2021)(1) Non-consolidated operating results
Net sales
Fiscal year ended

Operating income

Millions of yen% Millions of yen

Ordinary income% Millions of yen

Net income% Millions of yen%

March 31, 2021

20,795(6.5)

249(70.7)

636(45.6)

379

506.5

March 31, 2020

22,240

(0.3)

851

169.1

1,168

17.1

62

(93.8)Net income per share
Fiscal year ended

Diluted net income per share
Yen

Yen

March 31, 2021

20.96

—

March 31, 2020

3.41

—

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

As ofMillions of yen

Millions of yen

March 31, 2021

24,981

13,27853.2

734.63

March 31, 2020

24,847

13,09852.7

712.87

Reference: Equity
As of March 31, 2021: ¥13,278 million
As of March 31, 2020: ¥13,098 million%

Yen* This financial report is not subject to audits by Certified Public Accountants or 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 “(4) Outlook” under “1. Overview ofBusiness Results” on page 5 of the Attachment to this report.
(Method for obtaining supplementary financial results explanatory materials)
Financial results explanatory materials are scheduled to be made available on the Company’s website on
June 2, 2021.

Contents
1. Overview of Business Results ························································································ 2(1) Operating Results for the fiscal year ended March 31, 2021 ················································· 2(2) Financial Position ··································································································· 3(3) Cash Flows ·········································································································· 4(4) Outlook ··············································································································· 5
2. Basic Approach to Selection of Accounting Standard ·························································· 6
3. Consolidated Financial Statements and Key Notes ····························································· 7(1) Consolidated Balance Sheets ····················································································· 7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ········· 9Consolidated Statements of Income ·············································································· 9Consolidated Statements of Comprehensive Income ························································ 10(3) Consolidated Statements of Changes in Net Assets ························································· 11(4) Consolidated Statements of Cash Flows ······································································ 13(5) Notes to Consolidated Financial Statements ·································································· 15(Note Concerning Going Concern Assumption) ····························································· 15(Accounting Standards, etc., Yet to Be Applied) ····························································· 15(Business Combinations) ························································································ 16(Segment Information) ··························································································· 18(Per Share Information) ·························································································· 20(Subsequent Events) ······························································································ 20

11. Overview of Business Results(1) Operating Results for the fiscal year ended March 31, 2021
In the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021), although the rollout of
COVID-19 vaccines began, some time is still required for their widespread use. As a result, the global
economy continued to face the worldwide COVID-19 pandemic with no end in sight. The Japanese
economy continued to face uncertainty toward the future as it experienced restrictions in economic
activities due to two declarations of states of emergency, and significant changes in social behavioral
patterns.
In this environment, the food and health food industries, the Group’s main business partners, were
impacted substantially due to the entrenchment of telework and the loss of in-bound tourism demand. In
the food-service industry, we saw signs of a recovery thanks to the national government’s measures that
stimulate demand for tourism and food services, however, demand declined once again due to the second
state of emergency declared in January 2021.
The Group believes that preventing the spread of infection to business partners and employees is a toppriority. Accordingly, the Group worked hard to maintain and enhance various business activities such as
production, sales and distribution while proactively adopting telework, flexible work arrangements andweb conferences in order to avoid the so-called three Cs: closed spaces, crowded places, andclose-contact settings. Moreover, based on a policy of selection and concentration, in February 2021 theCompany completed the transfer of its adhesives business (manufacturing) to Bostik-Nitta Co., Ltd., anequity-method affiliate.
Net sales decreased 11.6% year on year to ¥30,550 million due to the impact of its withdrawal from thecollagen casing business in the previous fiscal year and the decline in net sales in Japan. Due to thedecline in net sales, operating income fell 19.8% to ¥1,356 million and ordinary income dropped 24.1%
to ¥1,364 million, owing to the decrease in equity in earnings of affiliates, while net income attributableto owners of parent totaled ¥742 million, compared to a net loss attributable to owners of parent in theprevious fiscal year of ¥694 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 the food solutions category, net sales declined due the impacts of lower product sales in Japan and thewithdrawal from the collagen casing business.
In Japan, product sales of gelatin for use at home in confectioneries and cooking increased amid risingdemand for making sweets at home due to stay-at-home demand caused by the COVID-19 pandemic.
However, sales declined for gelatin for gummy candy eaten by people when out or on the go due to theentrenchment of working from home and the stay-at-home trend. Sales of products for use in delicatessen
2items declined due to weaker demand for lunch at convenience stores in urban areas. In addition, sales forseasonings and for soups for the food-service industry (hotels, restaurants and cafes [HORECA]) declined
due to the food-service industry being forced to reduce business hours on an ongoing basis.
Overseas, sales to the markets for gummy candy, jelly confectioneries and other applications were
solid in the North America due to the increased stay-at-home hours, but there was a substantial decline in
net sales caused by the withdrawal from the collagen casing business in the previous fiscal year.
As a result, overall sales in the food solutions category decreased 18.8% year on year to ¥11,690
million.
Health support
In the health support category, overall net sales declined due to the decline in sales in Japan despite anincrease in sales of collagen peptide for health and beauty applications in Asia.
In Japan, sales of gelatin for capsules and collagen peptide for health and beauty applications declined
due to the loss of in-bound tourism demand and the decline in in-store sales at drugstores and others
caused by the COVID-19 pandemic.
Overseas, in North America sales of gelatin for capsules increased on people’s rising awareness toward
health upkeep and prevention caused by the COVID-19 pandemic, but in-store sales of collagen peptide
health and beauty products declined, causing net sales to decline overall. In Asia, in addition to sales
growth of functional collagen peptide for health and beauty applications, sales of Halal-certified gelatinfor capsules continued to increase. In India, sales of capsules for pharmaceutical and health foodapplications recovered, as net sales were largely on par with the previous fiscal year.
As a result, overall sales in the health support category decreased 1.4% year on year to ¥14,071
million.
Specialties
In the specialties category, net sales decreased 18.5% year on year to ¥4,789 million due to a decrease insales from the completion of the transfer of the adhesives business (manufacturing) in February 2021 anda decrease in sales of gelatin for photography applications caused by people’s voluntary restraint fromgoing out.

(2) Financial Position
Changes in assets, liabilities, and net assets at March 31, 2021 include the impacts of the businessdivestiture in which Bostik-Nitta Co., Ltd. was the successor company and the Company’s adhesives
business (manufacturing) was the non-surviving company.
(Assets)
Total assets amounted to ¥34,915 million at March 31, 2021, ¥1,363 million higher than at March 31,
32020. This was mainly attributable to an increase in cash and deposits of ¥2,609 million and increase in
net defined benefit asset of ¥437 million, which offset decreases in trade notes and accounts receivable of¥733 million and inventories of ¥893 million.
(Liabilities)
Total liabilities stood at ¥16,041 million at March 31, 2021, ¥49 million lower than at March 31, 2020.
This was mainly attributable to decreases in trade notes and accounts payable of ¥664 million, current
portion of long-term loans payable of ¥278 million and other accounts payable of ¥159 million, compared
to an increase in long-term loans payable of ¥700 million and an increase in deferred tax liabilities of¥320 million.
(Net assets)
Net assets amounted to ¥18,873 million at March 31, 2021, ¥1,412 million higher than at March 31, 2020.
This was mainly attributable to increases in retained earnings of ¥523 million, remeasurements of defined
benefit plans of ¥282 million, and non-controlling interests of ¥285 million.
As a result, the equity ratio stood at 48.1% at March 31, 2021 compared with 46.7% at March 31,
2020.

(3) Cash Flows
Cash and cash equivalents (“cash”) as of March 31, 2021 was ¥3,998 million, up ¥2,616 million fromMarch 31, 2020.
Cash flows for each activity and reasons are as follows.
(Cash flows from operating activities)
Operating activities provided net cash of ¥3,509 million. The main components were income before
provision for income taxes of ¥1,306 million, depreciation and amortization of ¥1,348 million, anddecrease in trade notes and accounts receivable of ¥893 million.
(Cash flows from investing activities)
Investing activities used net cash of ¥897 million. This was mainly attributable to ¥1,220 million inpurchase of property, plant and equipment and ¥348 million in proceeds from business divestiture.
(Cash flows from financing activities)
Financing activities used net cash of ¥31 million. The main components were proceeds from long-termloans payable of ¥3,012 million, repayment of long-term loans payable of ¥2,591 million, cash dividends
paid of ¥218 million, and repayments of lease obligations of ¥216 million.

4

Trends in the Group’s cash flow indicators are presented below.
(Reference)
Trends in cash flow indicators:
Fiscal year
ended March
31, 2017

Fiscal year
ended March
31, 2018

Fiscal year
ended March
31, 2019

Fiscal year
ended March
31, 2020

Fiscal year
ended March
31, 2021

Equity ratio (%)

38.9

40.7

42.0

46.7

48.1

Market value equity ratio (%)

34.3

39.3

33.4

32.4

34.7

Interest-bearing debt to cash
flow ratio (Years)

5.9

7.2

4.3

4.1

2.4

Interest coverage ratio (Times)

8.1

6.0

9.2

10.4

31.7

Equity ratio: equity / total assets
Market value equity ratio: market capitalization / total assets
Interest-bearing debt to cash flow ratio: interest-bearing debt / cash flow
Interest coverage ratio: cash flow / paid interest
Notes: 1. All indicators are calculated using consolidated financial figures.
2. Market capitalization is calculated based on the number of issued shares, excluding treasury stock, as of the endof the fiscal year.
3. The figure used for cash flow is “net cash provided by operating activities” on the consolidated statements of cash
flows.
4. Interest-bearing debt includes all liabilities recorded on the consolidated balance sheets on which interest waspaid. Furthermore, regarding the paid interest, we use “interest expenses paid” recorded on the consolidated
statements of cash flows.

(4) Outlook(Outlook for Business Performance in the Fiscal Year Ending March 31, 2022)
The next fiscal year marks the first year of the medium-term management plan (fiscal years ending March
31, 2022 to March 31, 2024) announced today (May 13, 2021). Under this medium-term management
plan, the Company will further strengthen and expand its management foundation through the strategic
allocation of management resources to key markets, strengthening of organizational foundation andstronger ties with stakeholders.
Although the rollout of COVID-19 vaccines has begun, some time is still required for their widespread
use to end the pandemic, and as a result, time is also likely still needed for the global economy to recover.
The Japanese economy continues to face an unpredictable situation as the pandemic continues unabated,marked by the country’s third state of emergency issued in April 2021.
Given this environment, in the food solutions category, the Company will develop new products andapplications in response to the increase in take-out and delivery services in Japan, and work to expand
sales.
In the health support category, the Company will make efforts to expand sales of collagen peptide usedin health food applications. In Japan, the Company will strive to capture new customers using productsthat have been approved as Foods with Functional Claims, and in Asia, the Company will expand sales ofcollagen peptide mainly for beauty applications. In North America, the Company will work to5

differentiate sales methods of collagen peptide by appealing its functionality, in addition to increasing
sales of capsule applications expected to see strong growth.
On top of the above business activities, the Company opened its first collagen drink specialty outlet
called CAFE RIWACO in April 2021 with the aim of directly reaching working women with collagen
peptide for which the Company has spent many years researching its functionality. In Matsuyama City,
Ehime Prefecture, the birthplace of Chojiro Nitta, the Company’s founder, the Company launchedactivities to support female athletes in Matsuyama through the provision of collagen products andsponsorship agreements.
The Group will continue to pursue the potential of collagen as a unique natural material, in order tosupply products and services that address its customers’ desires more than ever before. By doing so, theGroup will help to fulfill the desire of its customers “To stay healthy and feeling young,” as laid out in its
vision.
With regard to capital investment, in Japan the Group will look to invest in production of biomedical
products, improvement to research and development sites, and introduction of facility for production
reforms and raising operating efficiency. Overseas, the Group will execute investments aimed at measures
to ensure stable production and address environmental conservation.
The forecast for consolidated financial results for the next fiscal year calls for net sales of ¥29,500
million, operating income of ¥1,350 million, ordinary income of ¥1,350 million, and net income
attributable to owners of parent of ¥900 million.
(Risks related to COVID-19)
In order to prevent the spread of COVID-19, the Group believes that securing the safety of its business
partners and employees is a top priority. Accordingly, the Group is working to develop telework andflexible work arrangements, and to proactively adopt web conferences, in addition to placing tighter
restrictions on business trips inside and outside of Japan, to help its business partners and employees
avoid the so-called three Cs: closed spaces, crowded places, and close-contact settings. However,
COVID-19 could still impact the Group’s business performance and financial position throughcontingencies such as the stoppage of production due to the infection of employees and a slowdown inlogistics due to lockdowns at overseas business bases.

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 the consolidated
financial statements can be readily compared between different periods and different companies.
Looking ahead, considering its management policies and various conditions in Japan and abroad, Nitta
Gelatin plans to examine the adoption of International Financial Reporting Standards (IFRS). In doing so,
the Group will take into account trends such as the adoption of IFRS by its peer companies.
63. Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Millions of yen)

Fiscal 2020
Fiscal 2021
(As of March 31, 2020) (As of March 31, 2021)
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in process
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

7

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

4,024
6,944
5,069
1,201
2,582
459
(15)
20,266

8,943(5,589)3,354
13,327(10,547)
2,779
2,111
1,003
(443)
559
119
1,399
(1,141)
258
9,183

9,319
(6,008)3,311
14,069(11,398)
2,670
2,129
961
(414)
546
170
1,476
(1,196)
280
9,109

300
220
521

257
244
502

2,883
101
762
531
352
(105)
4,524
14,22933,551

3,205
1
429
968
539
(106)
5,036
14,64834,915

(Millions of yen)

Fiscal 2020
Fiscal 2021
(As of March 31, 2020) (As of March 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
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-sale securities
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

8

3,617
1,844
2,358
199
1,697
107
219
628
10,672

2,953
1,964
2,080
191
1,538
194
209
498
9,630

3,225
415
129
1,647
5,417
16,090

3,925
413
450
1,598
22
6,410
16,041

3,144
2,966
9,166
(0)
15,278

3,144
2,966
9,690
(200)
15,601

920
(47)
(346)
(137)
389
1,793
17,461
33,551

1,125
3
(82)
145
1,192
2,079
18,87334,915

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income(Consolidated Statements of Income)(Millions of yen)

Fiscal 2020
(From April 1, 2019
to March 31, 2020)
34,54327,244

Net sales
Cost of sales

Fiscal 2021
(From April 1, 2020
to March 31, 2021)
30,55024,248Gross profit on sales

7,299

6,302

Selling, general and administrative expenses

5,608

4,946

Operating income

1,690

1,356

Non-operating income
Interest income
Dividend income
Rent income
Outsourcing service income
Equity in earnings of affiliates
Other

6
43
42
53
155
40

5
41
42
44
9
27

Total non-operating income

341

170

187
9
26
10

107
43
9
2

233

162

1,798

1,364

17
29
6
-

0
13

53

13

1
5
2,788
-

6
7
13
44

2,796

72

Income (loss) before provision of income taxes

(943)

1,306

Income taxes
Income taxes-deferred

40
(460)

178
194

Total income taxes

(420)

373

Net income (loss)

(523)

932

Net income attributable to non-controlling interests

170

190

Net income (loss) attributable to owners of the parent

(694)

742

Non-operating expenses
Interest expenses
Foreign exchange losses
Commissions paid
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Reversal of allowance for doubtful accounts
Gain on sales of stocks of subsidiaries and associates
Subsidy income
Total extraordinary gains
Extraordinary losses
Disposal costs for noncurrent assets
Loss on retirement of noncurrent assets
Loss on tax purpose reduction entry of noncurrent assets
Loss on sales of stocks of subsidiaries and associates
Impairment loss
Total extraordinary losses

9(Consolidated Statements of Comprehensive Income)(Millions of yen)

Fiscal 2020
(From April 1, 2019
to March 31, 2020)(523)

Net income (loss)
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 losses of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

10

Fiscal 2021
(From April 1, 2020
to March 31, 2021)
932

(354)

206

(89)
(702)
1,723

98
333
271

8

10

584
60

920
1,853

117
(57)

1,545
307

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2020 (From April 1, 2019 to March 31, 2020)(Millions of yen)

Shareholders’ equity

Balance at the beginning of fiscal
year
Changes during the fiscal year
Dividends from surplus
Net income (loss) attributableto owners of the parent
Purchase of treasury stock
Net changes of items other thanshareholders’ equity
Total changes during fiscal year
Balance at the end of fiscal year

Capital stock

Capital surplus

Retained earnings

3,144

2,966

10,155

Treasury stock

Total shareholders’equity(0)16,266

(293)

(293)

(694)

(694)
(0)

(0)
-

3,144

2,966

(988)
9,166

(0)
(0)

(988)
15,278

Accumulated other comprehensive income
Valuation
Total
Foreign
Remeasurem
difference on Deferred
accumulated Non-controll
currency
ents ofing interests
otherlosses onothertranslation
definedavailable-forhedges
comprehensi
adjustments benefit planssale securities
ve incomeBalance at the beginning of fiscal
year
Changes during the fiscal year
Dividends from surplus
Net income (loss) attributableto owners of the parent
Purchase of treasury stock
Net changes of items other thanshareholders’ equity
Total changes during fiscal year
Balance at the end of fiscal year

1,274

(8)

174

(1,863)

(423)

1,865

Total net
assets17,708

-

(293)

-

(694)

-

(0)

(354)

(38)

(521)

1,726

812

(71)

740

(354)
920

(38)
(47)

(521)
(346)

1,726
(137)

812
389

(71)
1,793

(247)
17,46111

Fiscal 2021 (From April 1, 2020 to March 31, 2021)(Millions of yen)

Shareholders’ equity
Capital stock

Balance at the beginning of fiscal
year
Changes during the fiscal year
Dividends from surplus
Net income attributable toowners of the parent
Purchase of treasury stock
Net changes of items other thanshareholders’ equity
Total changes during fiscal year
Balance at the end of fiscal year

Capital surplus

3,144

Retained earnings

2,966

Treasury stock

9,166

Total shareholders’equity(0)15,278

(218)

(218)

742

742
(199)

(199)
-

3,144

2,966

523
9,690

(199)
(200)

323
15,601

Accumulated other comprehensive income
Valuation
Total
Foreign
Remeasurem
difference on Deferred
accumulated Non-controll
currency
ents ofing interests
otherlosses onothertranslation
definedavailable-forhedges
comprehensi
adjustments benefit planssale securities
ve incomeBalance at the beginning of fiscal
year
Changes during the fiscal year
Dividends from surplus
Net income attributable toowners of the parent
Purchase of treasury stock
Net changes of items other thanshareholders’ equity
Total changes during fiscal year
Balance at the end of fiscal year

920

(47)

(346)

(137)

389

1,793

Total net
assets17,461

-

(218)

-

742

-

(199)

205

51

264

282

803

285

1,089

205
1,125

51
3

264
(82)

282
145

803
1,192

285
2,079

1,412
18,87312

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

Fiscal 2020
(From April 1, 2019
to March 31, 2020)
Cash flows from operating activities
Income (loss) before provision of 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 earnings (losses) of affiliates
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Impairment loss
Loss (gain) on sales of investment securities
Loss on sales of stocks of subsidiaries and associates
Loss on tax purpose reduction entry of noncurrent assets
Subsidy income
Decrease 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
Net cash provided by operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Purchase of intangible assets
Subsidies received
Proceeds from the sale of investment securities
Purchase of investment securities
Proceeds from business divestiture
Payment of expenses related to business divesture
Proceeds from sales of shares of subsidiaries resulting inchangein scope of consolidation
Other, net
Net cash used in investing activities

13

Fiscal 2021
(From April 1, 2020
to March 31, 2021)

(943)
1,448
46
(17)
16
(72)
(49)
187
68
(155)
(16)
5
(2)
2,782
270
(627)
(633)
75
(71)
2,313
49
(189)
(204)
1,969

1,306
1,348
45
(0)
(8)
(0)
(47)
107
(14)
(9)
6
7
44
(5)
13
(13)
893
575
(738)
(150)
250
3,610
47
(110)
(37)
3,509

(11)
19
7
(900)
(38)
3
(7)
(114)
119
34
(889)

(23)
30
2
(1,220)
(54)
13
14
(8)
348
0
(897)

(Millions of yen)

Fiscal 2020
(From April 1, 2019
to March 31, 2020)
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
Purchase of treasury stock
Cash dividends paid to non-controlling interests
Net cash provided (used in) by 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 the fiscal year

14

(667)
1,800
(2,590)
260
(233)
(293)
(0)
(14)
(1,739)
(10)
(670)
2,051
1,381

Fiscal 2021
(From April 1, 2020
to March 31, 2021)
17
3,012(2,591)
186
(216)
(218)
(199)
(21)
(31)
35
2,616
1,381
3,998

(5) Notes to Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Accounting Standards, etc., Yet to Be Applied)(1) Accounting Standard for Revenue Recognition, etc.
・ Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020, ASBJ)
・ Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30, March 26,
2021, ASBJ)・ Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ
Guidance No. 19, March 31, 2020, ASBJ)
a. Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards
Board (FASB) in the United States jointly developed comprehensive standards for revenue
recognition and published the “Revenue from Contracts with Customers” (IFRS 15 at the IASB
and Topic 606 at the FASB) in May 2014. Given that IFRS 15 has been applied from fiscal years
starting on or after January 1, 2018 and that Topic 606 has been applied from fiscal years starting
after December 15, 2017, the Accounting Standards Board of Japan (ASBJ) has developed
comprehensive accounting standards for revenue recognition and published them together with
Implementation Guidance.
The basic policy of the ASBJ in developing accounting standards for revenue recognition is to set
accounting standards, with the incorporation of the basic principles of IFRS 15 as a starting point,
from the standpoint of maintaining comparability between financial statements, which is one of thebenefits of ensuring consistency with IFRS 15. The basic policy also calls for adding alternative
accounting treatments without compromising consistency with IFRS 15 if there are any items thatshould require consideration of practices, etc. that have been carried out in Japan.
b. Planned date of application
To be applied from the beginning of the fiscal year ending March 31, 2022
c. Impact of the application of the accounting standards, etc.
The Group is currently in the process of determining the effects of applying the Revised
Accounting Standard for Revenue Recognition, etc. on the consolidated financial statements.
(2) Accounting Standards for Fair Value Measurement, etc.
・ Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019, ASBJ)
・ Standard for Measurement of Inventories” (ASBJ Statement No. 9, July 4, 2019, ASBJ)
・ Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019, ASBJ)・ Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance
15

No. 31, July 4, 2019, ASBJ)・ Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ
Guidance No. 19, March 31, 2020, ASBJ)
a. Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards
Board (FASB) in the United States have established almost identical detailed guidance on fairvalue measurement (IFRS 13 “Fair Value Measurement” based on International Financial
Reporting Standards (IFRS) and Accounting Standards Codification Topic 820 “Fair Value
Measurement” based on U.S. generally accepted accounting principles (GAAP)). Considering thissituation, the Accounting Standards Board of Japan (ASBJ) has worked to ensure consistency
between Japanese standards primarily regarding guidance and disclosure related to the fair value offinancial instruments and international accounting standards, and has published the “AccountingStandards for Fair Value Measurement, etc.”
The basic policy of the ASBJ in developing accounting standards for fair value measurement is tofundamentally incorporate all of the provisions of IFRS 13, from the standpoint of improving theinternational comparability of financial statements between companies by applying a unified
measurement method, and to establish other accounting treatments for individual items without
significantly compromising comparability between financial statements, taking into consideration
practices, etc. that have been carried out in Japan.
b. Planned date of application
To be applied from the beginning of the fiscal year ending March 31, 2022
c. Impact of the application of the accounting standards, etc.
The Group is currently in the process of determining the effects of applying the AccountingStandards for Fair Value Measurement, etc. on the consolidated financial statements.
(Business Combinations)(Business divestiture)
The Company carried out a company split effective February 1, 2021 in which Bostik-Nitta Co., Ltd.
was the successor company and the Company’s adhesives business (manufacturing) was thenon-surviving company, pursuant to the resolution passed at the Board of Directors meeting held on
December 17, 2020.
1. Outline of Business Divestiture(1) Name of company that succeeded the divested business
Bostik-Nitta Co., Ltd.
(2) Business description of divested business
16Adhesives business (manufacturing)(3) Primary reason for business divestiture
The Company transferred its adhesives business (excluding manufacturing) to Bostik-Nitta Co.,
Ltd. on August 1, 2018 by executing a simple absorption-type split as the first stage oftransferring the Company’s adhesives business to Bostik-Nitta Co., Ltd., with the goal of
pursuing the greater growth of the adhesives business. Afterwards, construction of a new plant for
the adhesives business was completed at the site of the plant that was sold by the Company, andthe new plant is now in full commercial operation.
As a result, as the second stage for transferring the Company’s adhesives business to
Bostik-Nitta Co., Ltd., an agreement was reached between the Company and Bostik-Nitta Co.,
Ltd. to transfer assets and liabilities related to the manufacturing aspect of the Company’s
adhesives business; contractual status, rights and obligations; and employees mainly engaged in
manufacturing to Bostik-Nitta Co., Ltd. using a corporate split.
(4) Date of business divestiture
February 1, 2021
(5) Outline of the transaction including legal format
A business transfer in which consideration is received solely in assets such as cash
2. Outline of accounting treatment(1) Gain on transfer of businessNo gain on transfer of business occurred.
(2) Appropriate book values of assets and liabilities of business transferred and major components
Current assets
Noncurrent assets¥454 million
1

Total assets

455

Current liabilities

10

Noncurrent liabilities

96

Total liabilities

107(3) Accounting treatment
The Company recognizes the difference between the consolidated carrying amount and sales
price as gain on transfer of business. However, no difference in these amounts occurred.
3. Name of reporting segment in which the divested business was included
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting segment, so
there are no relevant items to disclose.

17

4. Estimated net sales and operating income attributable to the divested business recorded on the
consolidated statement of income for the period under review
Net sales¥2,017 million

Operating loss

¥119 million(Segment Information)
Segment Information
Fiscal 2020 (From April 1, 2019 to March 31, 2020)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting segment,
so information is omitted.
Fiscal 2021 (From April 1, 2020 to March 31, 2021)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting segment,
so information is omitted.
Related information
Fiscal 2020 (From April 1, 2019 to March 31, 2020)
1. Information by products and services
The Nitta Gelatin Group's collagen business has become the Company’s only reporting segment,
so information is omitted.
2. Information by countries and regions(1) Net sales(Millions of yen)

Japan

India

Asia

U.S.

19,176

2,932

2,231

8,175

Canada

Other

1,543

485

Total
34,543

Note: Sales are classified into countries or regions based on customers’ locations.

(2) Property, plant and equipment(Millions of yen)

Japan

India

3,650

2,958

Asia

U.S.

30

2,052

Canada
491

Total
9,183

3. Information by main customer
The Company has omitted disclosure because no sales to any external customer exceeded 10% of
the total net sales on the consolidated statements of income.

18

Fiscal 2021 (From April 1, 2020 to March 31, 2021)
1. Information by products and services
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting segment,
so information is omitted.
2. Information by countries and regions(1) Net sales(Millions of yen)

Japan

India

Asia

U.S.

16,601

2,621

3,219

6,369

Canada

Other

1,416

322

Total
30,550Note: Sales are classified into countries or regions based on customers’ locations.

(2) Property, plant and equipment(Millions of yen)

Japan

India

Asia

U.S.

Canada

Total

3,610

2,950

24

1,855

667

9,109

3. Information by main customer
The Company has omitted disclosure because no sales to any external customer exceeded 10% of
the total net sales on the consolidated statements of income.
Information on impairment loss on noncurrent assets by reporting segments
Fiscal 2020 (From April 1, 2019 to March 31, 2020)
None
Fiscal 2021 (From April 1, 2020 to March 31, 2021)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting segment,
so information is omitted.
Information on amortization of goodwill and unamortized amounts by reporting segments
Fiscal 2020 (From April 1, 2019 to March 31, 2020)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting segment,
so information is omitted.
Fiscal 2021 (From April 1, 2020 to March 31, 2021)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting segment,
so information is omitted.
19

Information on gain on negative goodwill by reporting segments
Fiscal 2020 (From April 1, 2019 to March 31, 2020)
None
Fiscal 2021 (From April 1, 2020 to March 31, 2021)
None(Per Share Information)
Fiscal 2020
(From April 1, 2019
to March 31, 2020)

Fiscal 2021
(From April 1, 2020
to March 31, 2021)

Net assets per share¥852.71¥929.18

Net income (loss) per share(¥37.79)¥40.99Notes: 1. Diluted net income per share for fiscal 2020 is not disclosed due to the recording of a net loss per shareand the absence of latent shares with dilution effect.
2. Diluted net income per share for fiscal 2021 is not disclosed due to the absence of latent shares withdilution effect.
3. Basis for calculating net income (loss) per share data is shown below.

Fiscal 2020
(From April 1, 2019
to March 31, 2020)

Fiscal 2021
(From April 1, 2020
to March 31, 2021)

(694)

742

—

—

(694)

742

18,373,810

18,107,546

Net income (loss) per share
Net income (loss) attributable to owners of theparent (Millions of yen)Amounts not attributable to common shareholders(Millions of yen)
Net income (loss) attributable to owners of theparent related to common stock (Millions of yen)
Average number of common shares during theperiod (shares)(Subsequent Events)
None20