February 9, 2012

Consolidated Financial Results
for the Nine Months Ended December 31, 2011
(Japanese Accounting Standards)
Name of the Listed Company: Nitta Gelatin Inc.
Listing:
Second Section of Tokyo Stock Exchange
Stock code:
4977
URL:
http://www.nitta-gelatin.co.jp
Representative:
Norimichi Soga, Representative Director and President
Contact Person:
Tsuneo Sasaki, Director and Managing Executive Officer;
General Manager of the General Affairs Division
Tel: +81-72-949-5381
Scheduled date to file Quarterly Securities Report: February 13, 2012
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 nine months ended December 31, 2011
(from April 1, 2011 to December 31, 2011)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Nine months ended
December 31, 2011
December 31, 2010

Operating income

Ordinary income

Net income

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

20,870
―

―
―

1,620
―

―
―

1,518
―

―
―

906
―

―
―

Note: Comprehensive income
For the nine months ended December 31, 2011:¥ 474 million (－%)
For the nine months ended December 31, 2010: － (－%)

Net income
per share
Nine months ended
December 31, 2011
December 31, 2010

Diluted net
income per share
Yen

Yen

68.56
―
―
―
Note: Consolidated operating results for the nine months ended December 31, 2010 and year-on-year percentage changes are
not shown, as Nitta Gelatin did not prepare consolidated financial statements for the nine months ended December 31, 2010.

(2) Consolidated financial position
Total assets
As ofDecember 31, 2011
March 31, 2011

Net assets

Equity ratio

Millions of yen

Millions of yen％

22,754
21,466

7,478
6,185

32.5
28.5

Reference: Equity:
As of December 31, 2011:
As of March 31, 2011:¥7,403 million¥6,125 million

2. Cash dividends
Cash dividends per shareFirst quarter

Second quarter

Yen

Fiscal year ended
March 31, 2011
Fiscal year ending
March 31, 2012
Year ending March 31,
2012 (Forecasts)

Third quarter

Yen

Fiscal year-end

Annual Total

Yen

Yen

3.75

7.50

8.00

10.00

Yen

―

3.75

―

―

2.00

―

Notes: 1. Changes from the most recently disclosed dividends forecast: None
2. Breakdown of dividends forecast for the March 31, 2012 fiscal year-end: ¥6.00 in ordinary dividend and ¥2.00 incommemorative dividend per share
3. We conducted a stock split on April 1, 2011, at a ratio of two shares of common stock for each one share of common
stock.

3. Consolidated financial forecasts for the fiscal year ending March 31, 2012
(from April 1, 2011 to March 31, 2012)
OperatingincomeNet sales

Fiscal year ending
March 31, 2012

(Percentages indicate year-on-year changes.)
Ordinary
Net income
Net income
incomeper share

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

28,194

1.0

2,060

38.5

2,017

45.8

1,308

24.4

94.84

Notes: 1. Changes from the most recently disclosed consolidated financial forecasts: None
2. Net income per share forecast for the fiscal year ending March 31, 2012 was calculated based on the average numberof shares for the period that takes into account an allotment of 255,200 shares of common stock to a third party,
which we announced on January 13, 2012 in our Notice Regarding Results of Capital Increase Through Third-Party
Allotment.

4. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in achange in the scope of consolidation): None
New: － (company name)
Excluded: － (company name)(2) Adoption of special accounting procedures in preparing the quarterly consolidated financial
statements: No(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
a. Changes in accounting standards due to revisions to accounting standards and other guidelines: Yes
b. Changes in accounting policies due to reasons other than a. above: No
c. Changes in accounting estimates: No
d. Restatement of revisions: No(Note) For details, please refer to (2) Changes in Accounting Policies and Estimates, and Restatementof Revisions, under 2. Matters Concerning Summary Information (Others).

(4) Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of December 31, 2011
15,514,874 shares
As of March 31, 2011
12,733,874 sharesb. Number of shares of treasury stock at the end of the period
As of December 31, 201192 shares
As of March 31, 2011
219,006 sharesc. Average number of shares
For the nine months ended December 31, 2011
For the nine months ended December 31, 2010

12,814,808 shares－ shares(Note) We conducted a stock split on April 1, 2011, at a ratio of two shares of common stock foreach one share of common stock. Note, however, that the figures for the number of shares have been
calculated on the assumption that this stock split was conducted at the beginning of the previous
fiscal year.
* Disclosure of status of quarterly review procedure
This report falls outside the scope of quarterly review procedures as laid out in the Financial Instruments
and Exchange Act. As of the time of the release of this report, the review of the financial statements, etc.,
outlined in the Act had not been concluded.
* Proper use of earnings forecasts, and other special mattersz The forward-looking statements, including financial forecasts, contained in these materials are
based on information currently available to us and on certain assumptions deemed to be reasonable.
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 the(3) Qualitative Information Concerning Consolidated Business Forecasts on page 4 of the
Attachment Contents to this report.
z We conducted a stock split on April 1, 2011, at a ratio of two shares of common stock for each one
share of common stock.
z Net income per share forecast for the fiscal year ending March 31, 2012 was calculated based on the
average number of shares for the period that takes into account an allotment of 255,200 shares ofcommon stock to a third party, which we announced on January 13, 2012 in our Notice Regarding
Results of Capital Increase Through Third-Party Allotment.

Attachment Contents
1. Qualitative Information Concerning Quarterly Financial Statements ･･･････････････････････ 2(1) Qualitative Information Concerning Consolidated Business Results･････････････････････････ 2(2) Qualitative Information Concerning Consolidated Financial Position････････････････････････ 3(3) Qualitative Information Concerning Consolidated Business Forecasts･･･････････････････････ 4

2. Matters Concerning Summary Information (Others) ････････････････････････････････････ 5(1) Significant Changes in Subsidiaries During the Quarterly Period ･･･････････････････････････ 5(2) Changes in Accounting Policies and Estimates, and Restatement of Revisions･････････････････5(3) Additional Information････････････････････････････････････････････････････････････ 5

3. Quarterly Consolidated Financial Statements･･･････････････････････････････････････････ 6(1) Consolidated Balance Sheets ･･･････････････････････････････････････････････････････ 6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ･････ 8(3) Note Concerning Going Concern Assumption ･････････････････････････････････････････10(4) Note Concerning Significant Changes in Shareholders’ Equity ････････････････････････････10(5) Subsequent Events ･･･････････････････････････････････････････････････････････････11

1

1. Qualitative Information Concerning Quarterly Financial Statements(1) Qualitative Information Concerning Consolidated Business Results
In the first nine months of the year ending March 31, 2012, the overseas businessenvironment surrounding the Nitta Gelatin Group was characterized by a strong
tendency to polarize into two camps. On the one hand, China and India drove economic
growth in the Asian region. On the other hand, the sovereign debt crisis and otherproblems in the euro zone caused leading industrial economies to either slow or recede.
Meanwhile, the Japanese economy began to recover steadily as it overcame the negative
impact of the Great East Japan Earthquake. However, the pace of recovery is gradual,
challenging business conditions persist and the economic outlook remains uncertain due
to the protracted appreciation of the yen, the European financial crisis, flooding in
Thailand and other sources of economic turmoil overseas.
Against this backdrop, the Nitta Gelatin Group has adopted three basic management
policies: (1) Beyond the customers’ expectations; (2) Globalization & innovation; and(3) Focusing and concentration. Guided by these policies, we have actively worked todevelop new products and cultivate new markets while concentrating on rising above
the challenging business conditions in order to provide products and services that satisfy
our customers. In addition, the domestic food market saw growth in response to thevarious demands created by the earthquake. As a result, in the first nine months of theyear ending March 31, 2012, net sales were ¥20,870 million, mainly reflecting higher
sales of gelatin and food materials in Japan. In addition, we reported operating incomeof ¥1,620 million, ordinary income of ¥1,518 million and net income of ¥906 million.
Segment business performance was as follows:a) Collagen Material BusinessIn the gelatin field, edible gelatin continued to perform strongly in Japan into the second
half of the fiscal year, particularly for use in heat-and-serve delicatessen items andchilled desserts in convenience stores, yogurt and other dairy products, and gummy
candy and other confectionery applications. On the other hand, sales of gelatin capsulesfor the pharmaceutical sector languished chiefly due to slowdown in the market, incontrast to strong sales for the nutritional food supplement sector. Meanwhile,
photographic gelatin sales held firm. In overseas markets, sales of gelatin capsules werestrong in both the pharmaceutical and nutritional food supplement sectors. Although themonetary amount from sales of exports from Japan declined after we gave first priority
to supplying earthquake-related demand, the Group’s overseas subsidiaries and affiliates
saw strong sales growth.
2Collagen peptide sales declined year on year, as a result of a decline in consumer
sentiment for dietary supplements in the wake of the earthquake, as well as fromterminating the sales of certain products of customers. The monetary amount from salesof exports to the Asia region also declined due to import restrictions on Japanese
products in certain Asian countries following the nuclear power plant accident.
In collagen casing, we benefited from favorable prices in the U.S., leading to higher
sales of the casings for both snack sausages such as salami and dinner sausages
including frankfurters. Exports of collagen casings to Europe also grew steadily.
As a result, net sales in the Collagen Materials were ¥13,019 million and segment
profit was ¥1,811 million.
b) Formula Solution BusinessIn food materials, we reported steady growth in sales of stabilizers for ham, sausage,
steamed buns with meat filling and other meat products, and mixes for delicatessen
items, in addition to mainstay gelling agents, mainly for use in convenience store
desserts and heat-and-serve meals.
In adhesives, sales increased robustly for hot melt adhesives for packaging
beverages, instant noodles and confectionary among other applications in the foodsector, and for applications in construction materials. However, sales of hot melt
adhesives for bookbinding applications continued to decrease due to weak conditions in
the publishing sector.
As a result, net sales in Formula Solution were ¥7,850 million and segment profit
was ¥816 million.
(2) Qualitative Information Concerning Consolidated Financial Position
Total assets amounted to ¥22,754 million at December 31, 2011, ¥1,288 million higher
than at March 31, 2011.
Current assets rose ¥1,809 million from March 31, 2011 to ¥14,677 million. This was
mainly attributable to a ¥789 million increase in cash and deposits, a ¥593 million
increase in notes and accounts receivable-trade and a ¥449 million increase ininventories.
Noncurrent assets decreased ¥521 million from March 31, 2011 to ¥8,076 million at
December 31, 2011. This was mainly due to a ¥288 million decrease in property, plantand equipment and a ¥221 million decrease in investment securities in line with lower
stock prices.
Current liabilities stood at ¥8,828 million at December 31, 2011, ¥63 million higher
3

than at March 31, 2011. This was mainly attributable to a ¥213 million increase in thecurrent portion of long-term loans payable and a ¥100 million increase in the current
portion of bonds, against a ¥124 million decrease in notes and accounts payable-trade
and a ¥144 million decrease in short-term loans payable.
Noncurrent liabilities decreased ¥68 million to ¥6,448 million. This was mainly due
to a ¥432 million increase in long-term loans payable, against a ¥330 million decreasein bonds payable and a ¥156 million decrease in provision for retirement benefits.
Net assets increased ¥1,292 million to ¥7,478 million. This was mainly attributable toa public offering of new shares that resulted in a ¥643 million increase in capital stock
and a ¥661 million increase in capital surplus, and a ¥330 million increase in retained
earnings, against a ¥465 million decrease in foreign currency translation adjustments
reflecting the yen’s appreciation since March 31, 2011.
As a result, the equity ratio stood at 32.5% as of December 31, 2011, compared to28.5% at March 31, 2011.
(3) Qualitative Information Concerning Consolidated Business Forecasts
There were no revisions to the Company’s consolidated business forecasts for the year
ending March 31, 2012, disclosed previously on December 20, 2011.

4

2. Matters Concerning Summary Information (Others)(1) Significant Changes in Subsidiaries During the Quarterly Period
None.
(2) Changes in Accounting Policies and Estimates, and Restatement of Revisions
Adoption of Accounting Standard for Earnings Per Share, etc.
Effective the first quarter of the fiscal year ending March 2012, the Company has
adopted the Accounting Standard for Earnings Per Share (ASBJ Statement No. 2, June30, 2010), Guidance on Accounting Standard for Earnings Per Share (ASBJ Guidance
No. 4, June 30, 2010) and Practical Solution on Accounting for Earnings Per Share(ASBJ PITF No. 9, June 30, 2010).
(3) Additional Information
Adoption of Accounting Standard for Accounting Changes and Error Corrections, etc.
In regard to any accounting changes and error corrections made on or after the
beginning of the first quarter of the fiscal year ending March 2012, the Company has
adopted the Accounting Standard for Accounting Changes and Error Corrections (ASBJ
Statement No. 24, December 4, 2009) and the Guidance on Accounting Standard for
Accounting Changes and Error Corrections (ASBJ Guidance No. 24, December 4,2009).

5

3. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)Previous fiscal year-end

End of third quarter(As of March 31, 2011)(As of December 31, 2011)

AssetsCurrent assets
Cash and deposits

1,558,156

2,347,857

Notes and accounts receivable-trade

5,621,843

6,215,205

Merchandise and finished goods

3,500,848

3,938,155

611,779

549,185

1,258,039

1,333,120

329,272

309,826

Allowance for doubtful accounts（11,556）(15,373)

Total current assets

12,868,383

14,677,977

Buildings and structures, net

2,644,724

2,492,160

Machinery, equipment andvehicles, net

1,283,236

1,097,398

Other, net

1,609,860

1,659,650

Total property, plant andequipment

5,537,820

5,249,208

Other

20,291

18,581

Total intangible assets

20,291

18,581

2,082,348

1,860,890

957,844948,952

Work in process
Raw materials and supplies
Other

Noncurrent assets
Property, plant and equipment

Intangible assets

Investments and other assets
Investment securities
Other

（28）

Allowance for doubtful accounts
Total investments and otherassetsTotal noncurrent assets
Total assets

6

(644)

3,040,164

2,809,198

8,598,276

8,076,988

21,466,660

22,754,965

(Thousands of yen)Previous fiscal year-end(As of March 31, 2011)

End of third quarter(As of December 31, 2011)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans
payableCurrent portion of bonds
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement
benefits
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

3,537,025

3,412,533

1,047,045

902,502

1,695,715

1,908,973

260,000

360,000

183,972

222,666

209,092

102,644

1,832,349

1,919,392

8,765,200

8,828,712

530,000

200,000

3,386,081

3,818,658

2,162,238

2,006,155

32,12233,359405,947

390,072

6,516,389

6,448,246

15,281,590

15,276,958

875,000

1,518,106

677,742

1,339,618

6,090,515

6,420,559（82,522）

Total shareholders’ equity
Accumulated other comprehensive
incomeValuation difference on otheravailable-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation
adjustments
Pension liability adjustment offoreign subsidiaries
Total accumulated othercomprehensive income(34)

7,560,736

9,278,249

408,627

383,834

2,058(25,460)（1,180,055）(1,645,362)（665,803）(587,434)（1,435,173）(1,874,422)

Minority interests

59,507

74,179Total net assets

6,185,070

7,478,007

21,466,660

22,754,965

Total liabilities and net assets

7

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive
IncomeConsolidated Statements of Income
The first three quarters of the fiscal year ending March 2012
(Thousands of yen)First three quarters of fiscal year
ending March 2012
(From April 1, 2011 to December 31, 2011)

Net sales
Cost of sales

20,870,294

Gross profit on sales
Selling, general and administrative
expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Other

5,263,213

15,607,080

3,642,705
1,620,507
566
16,95074,24052,084

Total non-operating income

143,841

Non-operating expenses
Interest expenses
Foreign exchange losses
Public offering expenses
Other

132,285
50,02544,726
18,881

Total non-operating expenses

245,919

Ordinary income

1,518,430

Extraordinary income
Gain on sales of noncurrent assets

268

Total extraordinary income

268

Extraordinary losses
Loss on retirement of noncurrent assets
Loss on valuation of investment
securities
Loss on valuation of golf clubmemberships
Total extraordinary losses
Income before income taxes
Income taxes
Income before minority interests
Minority interests in income
Net income

20,000
10,2464,500
34,746
1,483,951
570,323
913,628
7,109
906,5188

Consolidated Statement of Comprehensive Income
The first three quarters of the fiscal year ending March 2012
(Thousands of yen)First three quarters of fiscal year
ending March 2012
(From April 1, 2011 to December 31, 2011)

Income before minority interests

913,628

Other comprehensive income
Valuation difference on other availablefor-sale securities
Deferred losses on hedges
Foreign currency translation
adjustments
Pension liability adjustment of foreignsubsidiaries
Share of other comprehensive incomeof associates accounted for using
equity method
Total other comprehensive income
Total comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests(24,401)(9,761)(277,495)
78,369(205,934)(439,223)
474,404
467,2697,135

9

(3) Note Concerning Going Concern Assumption
None.
(4) Note Concerning Significant Changes in Shareholders’ Equity
1) At a meeting of the Board of Directors held on April 27, 2011, the Company
resolved to acquire and retire shares of class A preferred stock that it had
previously issued, as detailed below. As a result of this measure, retained earnings
and treasury stock both decreased by ¥527,980 thousands.
a) Type of shares acquired and retired
Class A preferred stockb) Number of shares acquired and retired
1,000,000c) Date of acquisition and retirement
May 23, 2011
2) Nitta Gelatin issued 2,781,000 shares in new common stock and disposed 219,000
shares in treasury stock in an initial public offering (IPO). The paid-in capitalincrease from the cash settlement for this IPO on December 19, 2011 was a¥643,106 thousand increase in capital stock and a ¥661,876 thousand increase incapital surplus, against a ¥82,517 thousand decrease in treasury stock.
As a result, capital stock stood at ¥1,518,106 thousand and capital surplus stoodat ¥1,339,618 thousand as of December 31, 2011.

10

(5) Subsequent Events
The Board of Directors of Nitta Gelatin met on November 15 and December 2, 2011 toapprove a resolution to issue new shares for third-party allotment to SMBC Nikko
Securities Inc. (SNBC Nikko) in covering SMBC Nikko’s over-allotment inunderwriting the offering of Nitta Gelatin stock to the public. The payment from SMBC
Nikko for those new shares was settled on January 18, 2012, with details as follows.
1.
2.
3.
4.

5.
6.

7.
8.

Number of shares issued
255,200 shares of common stock
Allotment price¥462.50 per share
Total allotment price¥118,030 thousand
Matters concerning the amount of increase in capital and capital surplus
Increase in capital¥231.25 per share
Increase in capital surplus¥231.25 per share
Total amount of paid-in capital¥59,015 thousand
Number of shares and recipient of the allotment
SMBC Nikko Securities Inc.
255,200 shares
Due date of payment
January 18, 2012
Use of proceeds
Nitta Gelatin plans to allocate the proceeds to production facilities for collagen
peptide and collagen casing, in addition to upgrades of gelatin production facilities.

11