Financial Results（Fiscal Year Ended March 31, 2024）
May 15, 2024

Securities code: 4977

Fiscal 2024 Consolidated Statements of Income⚫ Net sales rose. Operating income decreased mainly due to worsening productivity at Nitta Gelatin USA, Inc. but
ordinary income increased due to foreign exchange gains of ¥537 million recorded under non-operating income.
⚫ An extraordinary loss of ¥2,435 million was recorded due to the decision to close Nitta Gelatin USA, Inc. and the temporary
suspension of operations at Bamni Proteins Ltd. Net loss attributable to owners of the parent was ¥1,850 million
Forecast
announced Feb.
13, 2024

Fiscal2023

Fiscal2024

ChangeVs.

Net sales

39,18640,420+1,234+3.1%

Gross profit on sales

8,900

8,289(611)(6.9)%

Operating income

2,259

1,836(422)

5.8%

4.5%

Ordinary income

2,248

Net income (loss) attributable to owners of the parent

1,558(Millions of yen)

Operating marginVs.

40,000+1.1%(18.7)%

1,700+8.1%(1.2)pts

ー

4.3%

ー

2,382+133+5.9%

1,700+40.1%(1,850)(3,409)ー(2,400)ー(Reference: Foreign exchange rates)(Yen)

Fiscal 2023

Fiscal 2024

US dollars

134.96144.40+9.44

Canadian dollars

102.14106.99

+4.85

1.68

1.75

+0.07

Indian rupee

Change© Nitta Gelatin Inc. All rights reserved

2

Fiscal 2024 Sales Summary⚫ By Sales Category: Food Solutions benefited from increased demand for gelatin for gummy candies in Japan, as well as
progress in price revisions. In Health Support, sales of gelatin for capsules grew both in Japan and overseas.
Specialties sales of by-products overseas declined due to lower market prices.
⚫ By Region: Sales in North America declined due to inflation and tougher price competition, while sales in Japan andIndia grew significantly.
Net sales by sales category(Millions of yen)

Total

Net sales by region

Fiscal 2023 Fiscal 2024

ChangeVs.

(Millions of yen)

Total

Fiscal 2023

Fiscal 2024

ChangeVs.

39,18640,420+1,234+3.1%

39,18640,420+1,234+3.1%

Food Solutions

15,370

16,253+883

+5.7%

Japan

17,697

19,498+1,800+10.2%

Health Support

18,802

19,652

+850

+4.5%

India

5,221

5,552+331+6.3%

Specialties

5,013

4,514(499)(10.0)%

Asia3,185

3,270+85

+2.7%

U.S.

9,393

8,701(691)(7.4)%

Canada3,031

2,959(71)(2.4)%

Other658438(220)(33.5)%© Nitta Gelatin Inc. All rights reserved

3Fiscal 2024 Consolidated Balance Sheets⚫ Assets: Cash and deposits increased due to higher sales and improved capital efficiency. Inventories, while still at a highlevel, decreased compared to the end of the previous fiscal year. Property, plant and equipment decreased mainly dueto impairment losses at Nitta Gelatin USA, Inc. and Bamni Proteins Ltd.
⚫ Liabilities and Net Assets: Total liabilities decreased due to decreases in short-term and long-term loans payable, etc.
Net assets increased slightly due to an increase in non-controlling interests and other factors, despite a decrease inretained earnings due to the net loss attributable to owners of the parent(Millions of yen)March 31, 2023 March 31, 2024

Change(Millions of yen)
Current liabilities
Notes and accounts
payable–trade25,37625,196(180)

Cash and deposits

2,856

4,080

+1,223

Notes and accounts
receivable–trade

8,741

8,374

(367)Inventories

12,983

12,304(678)

Other current assets

794437(357)

Noncurrent assets
Property, plant andequipment

16,23814,766(1,472)

11,1199,029(2,089)

Intangible assets

504

463

(40)

4,614

5,272

+658

41,61439,962(1,652)Current assets

Investment securities
Total assets

March 31, 2023 March 31, 2024

Change12,711

11,072(1,638)

2,818

2,695

(123)

Short-term loans payable

6,236

5,369(866)

Other current liabilities

3,656

3,007(648)6,6466,619(27)Long-term loans payable4,557

4,428(128)

Other noncurrent liabilities

2,089

2,191+101

Total liabilities

19,358

17,692(1,665)

Total net assets

22,25622,269+12

Total liabilities and net assets

41,61439,962(1,652)

Noncurrent liabilities© Nitta Gelatin Inc. All rights reserved

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Fiscal 2024 Consolidated Statements of Cash Flows⚫ Operating cash flows: Increased due to impairment losses, depreciation and amortization, and decrease ininventories, etc.
⚫ Investing cash flows: Outflows increased due to the acquisition of property, plant and equipment for themaintenance and upgrading of production facilities.

⚫ Financial cash flows: Negative due to decrease in short-term loans payable, etc.
(Millions of yen)

Fiscal 2023

Fiscal 2024

ChangeCash flows from operating activities

(540)

4,911

+5,451

Cash flows from investing activities(1,498)(3,022)(1,523)

Cash flows from financing activities

1,824(1,610)(3,434)

Net increase (decrease) in cash and cash equivalents(184)

450+635

Cash and cash equivalents at end of the fiscal year

2,846

3,297+450© Nitta Gelatin Inc. All rights reserved5

Impacts of Production Stoppage of Consolidated Subsidiaries■Nitta Gelatin USA, Inc.
⚫ Nitta Gelatin USA, Inc. has been manufacturing and selling porcine gelatin, porcine collagen peptide, and other products inNorth America. However, it discontinued production as of January 2024, as it will be difficult to secure stable profits in thefuture due to worsening productivity and other factors.
⚫ Nitta Gelatin USA, Inc.’s non-consolidated operating loss for fiscal 2024 was ¥1,591 million. In addition, as extraordinary
losses on a consolidated basis, Nitta Gelatin Inc. posted an impairment loss of ¥1,783 million on noncurrent assets and aloss on business liquidation of ¥118 million, including special retirement payments and removal costs of manufacturing
facilities.
⚫ The sale of facilities after the closure, etc., is still under consideration.
⚫ Regarding future sales in North America, Nitta Gelatin USA, Inc. production will decrease, but bovine bone gelatin andother products supplied from Japan and India will continue. In addition, the profitability of the Group as a whole isexpected to improve significantly.

■Bamni Proteins Ltd.
⚫ Bamni Proteins Ltd. manufactures bovine ossein (raw material for gelatin) in India, but has temporarily suspended
operations since mid-March 2024 at the order of the local pollution control board.
⚫ In fiscal 2024, Nitta Gelatin Inc. recorded an impairment loss of ¥427 million and a loss associated with suspension ofproduction of ¥59 million as extraordinary losses on a consolidated basis.

⚫ The timing of the resumption of production is not known at this time, and it is assumed that costs associated with sourcing
alternative production will increase during the period until production resumes. The impact on consolidated performance
has already been factored into the fiscal 2025 forecast.
© Nitta Gelatin Inc. All rights reserved

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Fiscal 2025 Earnings Forecast⚫ Although overall net sales are expected to decline due to lower sales following the discontinuation of production at
Nitta Gelatin USA, Inc., sales in Japan and India are expected to grow on the back of strong demand for gelatin forgummy candies and for capsules.
⚫ In terms of profit, despite concerns about the rising and elevated cost of raw materials, personnel, and various otherexpenses, operating income is expected to reach a record high of ¥3,000 million as a result of the significant
improvement in profitability due to the discontinuation of production at Nitta Gelatin USA, Inc.
(Millions of yen)

Fiscal 2025
Forecast

Fiscal 2024 Results

Net sales
Gross profit on sales
Operating income

40,420
8,289
1,836
4.5%
2,382(1,850)

Operating margin
Ordinary income
Net income (loss) attributable to owners of the parent

39,000
9,600
3,000
7.7%
3,000
1,600

Change(1,420)+1,310+1,163+3.1pts+617+3,450

Vs.

(3.5)%+15.8%+63.3%－+25.9%－(Reference: Foreign exchange rates)(Yen)

Fiscal 2024 Results

Fiscal 2025 Forecast

ChangeUS dollars

144.40140.00(4.40)

Canadian dollars

106.99104.00(2.99)

1.75

1.70(0.05)

Indian rupee© Nitta Gelatin Inc. All rights reserved7Situation of Capital Investment and Dividends⚫ For fiscal 2025, we plan to make strategic investments, such as increasing collagen peptide production capacity at
Indian bases and introducing ERP, as well as investments in upgrading existing facilities for the purpose of stableproduction, efficiency improvement, etc. Depreciation and amortization is expected to decrease due to thediscontinuation of production at Nitta Gelatin USA, Inc (impairment of noncurrent assets).
⚫ For fiscal 2025, we plan to pay a dividend of ¥18 per share (sum of interim and year-end dividends), an increase of¥2 from the previous year.
Trend in capital investment and depreciation and amortization(Millions of yen)

Fiscal 2023
Results

Fiscal 2024
Results

Fiscal 2025
Forecast

2,113

Depreciation andamortization (millions of yen)

1,572

1,4072,100

16.0

18.0

Dividend on equity (DOE)

1.6%

1.6%

ー

1,572

1,663

1,200

Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025
(forecast)
Total capital investment
Depreciation and amortization
(Yen)

16.0

1,370

0

1,200

Dividend per share (yen)*Interim + year-end

1,348

2,100
1,407

1,359

1,000
500

1,663

2,113

2,000
1,500

Capital investment (millionsof yen)

2,344

2,500

15

Trend in dividends
121410© Nitta Gelatin Inc. All rights reserved

161.6%

1.6%

181.5%

50

161.3%
Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025
Dividends
DOE(forecast)8

(Reference materials) Trend in Consolidated Performance
Operating income and net income(Millions of yen)
4,000

39,186

36,46434,54330,514

31,783

3,000

2,259
1,690

2,000
1,000

989
898

1,356
742

40,420

1,560

1,558

1,836

Net sales(Millions of yen)
39,00040,0003,000
30,0001,600

726

20,00010,00000–1,000▲ 10,000–694–2,000▲ 20,000–1,850▲ 30,000–3,000Fiscal 2019

Fiscal 2020

Operating income

Fiscal 2021

Fiscal 2022

Fiscal 2023

Fiscal 2024Net income (loss) attributable to owners of the parent© Nitta Gelatin Inc. All rights reserved

Fiscal 2025
(forecast)
Net sales9Notice
The opinions, outlooks, and forecasts contained in this material are based on the judgment of the Company
at the time of the preparation of this document. The Company does not guarantee the accuracy of theinformation. Due to various factors such as market environment, etc., future results may vary from those inthis document. Thank you for your understanding.
Nitta Gelatin Inc.
IR/Public Relations Team, Corporate Planning Department[Inquiries] https://cloud.swcms.net/nitta-gelatinPublic/ja/ir/inquiry6.html© Nitta Gelatin Inc. All rights reserved

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