February 6, 2015

Consolidated Financial Results
for the Nine Months Ended December 31, 2014
(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:
Norimichi Soga, Representative Director and President
Contact Person:
Tsuneo Sasaki, Director and Senior Managing Executive Officer;
General Manager of the General Administration Division
Tel: +81-72-949-5381
Scheduled date to file Quarterly Securities Report: February 9, 2015
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, 2014
(from April 1, 2014 to December 31, 2014)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Nine months ended
December 31, 2014
December 31, 2013

Operating income

Millions of yen%

Millions of yen

23,841
24,449

(2.5)
14.7

336
876

Ordinary income

Net income% Millions of yen%

Millions of yen

%

906
1,059

(14.4)(26.6)

621
754(17.7)(28.6)(61.6)(25.7)

Note: Comprehensive income
For the nine months ended December 31, 2014: ¥1,671 million (15.1%)
For the nine months ended December 31, 2013: ¥1,451 million (15.4%)

Net income
per share
Nine months ended
December 31, 2014
December 31, 2013

Yen

Diluted net income
per share
Yen

33.81
43.59
Note: Diluted net income per share is not disclosed due to the absence of latent shares with dilution effect.

(2) Consolidated financial position
As ofDecember 31, 2014
March 31, 2014

Total assets

Net assets

Millions of yen

Millions of yen%

33,52331,38915,514
13,781

45.9
43.4

Reference: Equity
As of December 31, 2014:
As of March 31, 2014:

Equity ratio¥15,397 million¥13,636 million

2. Cash dividends
Cash dividends per shareFirst quarter

Second quarter

Third quarter

Fiscal year-end

Yen

Yen

Yen

Yen

Yen

-

6.00

-

6.00

12.00

-

6.00

6.00

12.00

Fiscal year ended March
31, 2014
Fiscal year ending March
31, 2015
Fiscal year ending March
31, 2015 (Forecasts)

AnnualNote: Changes to most recent dividend forecasts: None

3. Consolidated financial forecasts for the fiscal year ending March 31, 2015
(from April 1, 2014 to March 31, 2015)
OperatingincomeNet sales

Fiscal year ending
March 31, 2015

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

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

32,400(1.3)

600(37.2)

700(37.2)

500(24.9)

27.21

Note: Changes to most recent consolidated financial forecasts: None

Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in achange in the scope of consolidation): None
New: None
Excluded: None
(2) Adoption of special accounting methods for the preparation of quarterly consolidated financial
statements: 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: 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 “(3) Changes in Accounting Policies and Estimates, and Restatementof Revisions” in “2. Matters Concerning Summary Information (Notes)” on page 4 of the
Attachment Contents to this report.

(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, 2014
18,373,974 shares
As of March 31, 2014
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of December 31, 2014
162 shares
As of March 31, 2014
162 sharesc. Average number of shares
For the nine months ended December 31, 2014
For the nine months ended December 31, 2013

18,373,812 shares
17,311,862 shares* 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 yet been concluded.
* 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
Contents to this report.

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. Matters Concerning Summary Information (Notes) ････････････････････････････････････ 4(1) Significant Changes in Subsidiaries During the Quarterly Period Under Review ･････････････ 4(2) Application of Special Accounting Methods
in the Preparation of Quarterly Consolidated Financial Statements ･･･････････････････････ 4(3) Changes in Accounting Policies and Estimates, and Restatement of Revisions ･･････････････ 4

3. Quarterly Consolidated Financial Statements ･････････････････････････････････････････ 6(1) Consolidated Balance Sheets ･･････････････････････････････････････････････････････ 6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ･･･ 8
Consolidated Statements of Income
Third quarter consolidated cumulative accounting period ･･･････････････････････････････ 8
Consolidated Statements of Comprehensive Income
Third quarter consolidated cumulative accounting period ･･･････････････････････････････ 9(3) Notes to Quarterly Consolidated Financial Statements ････････････････････････････････ 10(Note Concerning Going Concern Assumption) ･･････････････････････････････････････ 10(Note Concerning Significant Changes in Shareholders’ Equity) ･････････････････････････ 10(Segment Information) ･･････････････････････････････････････････････････････････ 10

11. Qualitative Information Concerning Quarterly Financial Statements(1) Description of Business Results
In the first nine months of the fiscal year ending March 31, 2015, the outlook for the
global economy was uncertain, despite the gradual recovery in the U.S. business climate,owing to factors including slowing growth in emerging countries such as China andSoutheast Asian countries, and downside risk for the economies of oil producing nations
due to a sharp drop in oil prices brought on by the shale gas revolution. Meanwhile,
stagnation in the Japanese economy was protracted by the substantial impact of adownturn in demand after a rush to purchase ahead of an increase in the consumption
tax in April 2014.
Amid these circumstances, the Nitta Gelatin Group encountered very challenging
business conditions, including increased overseas prices of raw materials, a decline indemand in overseas markets, rising energy costs in Japan, and continuing high importprocurement costs dues to the yen’s depreciation.
As a result, in the first nine months of the fiscal year ending March 31, 2015, net
sales declined 2.5% year on year to ¥23,841 million. Operating income fell 61.6% to¥336 million, due to a delay in the timing of price revisions in the Japanese market,
ordinary income slid 14.4% to ¥906 million, cushioned by foreign exchange gains, andnet income decreased 17.7% to ¥621 million.
Segment business performance was as follows:(a) Collagen Material BusinessIn the gelatin field, sales of edible gelatin and capsule gelatin in Japan increased, butearnings decreased due to a delay in the timing for price revisions. In North America,
capsule gelatin sales declined as negative reports regarding fish oil in the U.S. sparked atemporary contraction in the supplement market, while earnings decreased, partly due tohigher raw material prices for pig skin. Consequently, gelatin sales increased, partlywith the impact of the yen’s depreciation, but earnings declined.
Collagen peptide sales decreased overall. Sales were brisk in the Asian region, but
stagnated in Japan as the market failed to shake off a slump in consumer appetite
following the increase in the consumption tax in April 2014.
Collagen casing sales and earnings increased, due to steady sales in the North
American markets.
2

As a result, net sales for the segment were up 1.5% year on year to ¥16,888 million
and segment profit (operating income) was down 26.8% to ¥857 million.
(b) Formula Solution Business
Sales of food materials decreased on lackluster trends in ingredients for confectionary
and desserts, and for ham and sausages, due to reduced demand accompanying theconsumption tax hike in April 2014, and unseasonable summer weather.
In adhesives, sales of hot-melt adhesives for use in hygiene products decreased.
Meanwhile, sales of sealants (high-performance gaskets) also decreased because
although deliveries have begun, their full-scale delivery will take some time.
As a result, net sales in the segment were down 11.0% year on year to ¥6,952 million.
Segment profit (operating income) was down 30.9% to ¥496 million.

(2) Description of Financial Position(Assets)
Total assets amounted to ¥33,523 million at December 31, 2014, ¥2,133 million higher
than at March 31, 2014. This was mainly attributable to a ¥1,052 million increase ininventories including merchandise and finished goods, and a ¥2,146 million increase inproperty, plant and equipment in line with the renewal of an adhesives office and alaboratory, and the construction of a collagen peptide plant at Nitta Gelatin USA, Inc.
These increases were partly offset by a ¥1,431 million decrease in notes and accounts
receivable-trade owing to the securitization of receivables.
(Liabilities)
Total liabilities stood at ¥18,009 million at December 31, 2014, ¥400 million higher
than at March 31, 2014. This was mainly due to a ¥209 million increase in short-termloans payable and a ¥699 million increase in long-term loans payable (current portion
included). These increases were partly offset by a ¥519 million decrease in notes andaccounts payable-trade and a ¥91 million decrease in net defined benefit liability.
(Net assets)
Net assets stood at ¥15,514 million at December 31, 2014, ¥1,732 million higher than at
March 31, 2014. This was mainly attributable to a ¥699 million increase in retained
earnings, a ¥266 million increase in valuation difference on other available-for-sale3

securities, and an increase of ¥892 million in foreign currency translation adjustments.
As a result, the equity ratio stood at 45.9% at December 31, 2014 compared with
43.4% at March 31, 2014.

(3) Description of Consolidated Business Forecasts and Other Forwardlooking Information
The Group’s consolidated business forecasts for the fiscal year ending March 31, 2015
are unchanged from those announced on November 6, 2014 in the “Consolidated
Financial Results for the Six Months Ended September 30, 2014.”
Actual business and other results may differ substantially from projections due tovarious factors.

2. Matters Concerning Summary Information (Notes)(1) Significant Changes in Subsidiaries During the Quarterly Period Under
Review
None(2) Application of Special Accounting Methods in the Preparation of
Quarterly Consolidated Financial Statements
None(3) Changes in Accounting Policies and Estimates, and Restatement ofRevisions(Changes in Accounting Policies)(Application of Accounting Standard for Retirement Benefits, etc.)
With regard to Accounting Standard for Retirement Benefits (Accounting Standards
Board of Japan (ASBJ) Statement No. 26, May 17, 2012; the “Retirement Benefit
Accounting Standard”) and Guidance on Accounting Standard for Retirement Benefits(ASBJ Guidance No. 25, May 17, 2012; the “Retirement Benefit Accounting
Guidance”), the Company has adopted the stipulations of the body text of Article 35 of
the Retirement Benefit Accounting Standard and the body text of Article 67 of the
Retirement Benefit Accounting Guidance from the first quarter ended June 30, 2014. As
a result, the Company revised its calculation method of retirement benefit obligations
and service costs, and changed its method for attributing estimated retirement benefits4

to accounting periods from the straight-line method to the benefit formula method. At
the same time, the method for determining the discount rate was changed to apply asingle weighted-average discount rate reflecting the estimated period of benefit
payments and amounts to be paid in each period. Formerly, this discount rate was basedon a close approximation of the number of years the Company's employees had on
average until retirement.
In accordance with the transitional treatment stipulated by Article 37 of the
Retirement Benefit Accounting Standard, as of April 1, 2014, the amounts that
correspond to the effect of the change in the calculation method of retirement benefit
obligations and service costs were added to, or deducted from, the starting balance ofretained earnings for the nine months ended December 31, 2014.
As a result, the Company marked up the starting balance of net defined benefit assetby ¥225 million (included in “other” under investments and other assets), marked down
net defined benefit liability by ¥238 million, and marked up retained earnings by ¥299
million, in the nine months ended December 31, 2014.
This change will have only a negligible impact on operating income, ordinary
income and income before income taxes and minority interests for the nine months ofthe year ending March 31, 2015.

5

3. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)

Fiscal 2014
(As of March 31, 2014)

3Q Fiscal 2015
(As of December 31, 2014)

AssetsCurrent assets
Cash and deposits

2,426,006

1,940,996

Notes and accounts receivable-trade

8,164,776

6,733,049

Merchandise and finished goods

4,732,050

5,142,894

Work in process

1,089,542

1,256,730

Raw materials and supplies

1,820,812

2,295,309

Other

465,533

700,001

Allowance for doubtful accounts(13,339)(17,312)

18,685,381

18,051,669

Buildings and structures, net

2,815,141

4,445,651

Machinery, equipment and vehicles, net

2,139,301

4,366,778

Other, net

3,849,844

2,138,699

Total property, plant and equipment

8,804,286

10,951,130

Other

50,79560,081

Total intangible assets

50,79560,081

3,075,772

3,596,646

Other

775,527

865,007

Allowance for doubtful accounts(2,111)(1,233)

Total investments and other assets

3,849,189

4,460,420

12,704,270

15,471,631

31,389,652

33,523,301

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets

Investments and other assets
Investment securities

Total noncurrent assets
Total assets

6

(Thousands of yen)

Fiscal 2014
(As of March 31, 2014)

3Q Fiscal 2015
(As of December 31, 2014)

Liabilities
Current liabilities
Notes and accounts payable-trade

4,255,505

3,736,182

Short-term loans payable

1,121,491

1,330,584

Current portion of long-term loans payable

1,932,912

2,081,328

Income taxes payable

147,730

157,959

Provision for bonuses

177,916

94,266Other

2,444,825

2,681,490

Total current liabilities

10,080,381

10,081,810

4,415,868

4,967,069

37,07237,8972,524,417

2,433,198

550,869

489,323

7,528,227

7,927,489

17,608,608

18,009,299

Capital stock

3,144,929

3,144,929

Capital surplus

2,966,442

2,966,442

Retained earnings

8,623,463

9,323,345

(68)

(68)

Total shareholders’ equity
Accumulated other comprehensive income(loss)
Valuation difference on otheravailable-for-sale securities
Deferred gains (losses) on hedges

14,734,766

15,434,648

622,837

889,400(5,110)63,963Foreign currency translation adjustments(187,061)

705,396

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income (loss)
Minority interests(1,528,458)(1,696,125)(1,097,792)(37,365)

144,069

116,718

Total net assets

13,781,043

15,514,001

31,389,652

33,523,301

Noncurrent liabilities
Long-term loans payable
Provision for directors' retirement benefits
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Shareholders' equity

Treasury stock

Total liabilities and net assets

7

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Third quarter consolidated cumulative accounting period)(Thousands of yen)

3Q Fiscal 2014
(From April 1, 2013
to December 31, 2013)
24,449,332

3Q Fiscal 2015
(From April 1, 2014
to December 31, 2014)
23,841,880

Cost of sales

19,551,097

19,407,413

Gross profit on sales

4,898,234

4,434,466

Selling, general and administrative expenses

4,021,373

4,097,701

876,860

336,765Interest income

4,478

352

Dividend income

19,26823,476

Foreign exchange gains

178,701

589,113Equity in earnings of affiliates

69,30959,891

Other

58,54868,897

Total non-operating income

330,306

741,731

Interest expenses

107,601

Public offering expenses

23,385

114,431-

Commissions paid

8,312

50,241

Other

8,563

6,950

147,862

171,623

1,059,304

906,873

Guarantees received

88,393-

Total extraordinary income

88,393-

Loss on retirement of noncurrent assets

15,802

20,932

Total extraordinary losses
Income before income taxes and minority
interests
Income taxes

15,802

20,932

1,131,896

885,940

387,177

277,631744,718

608,309

Net sales

Operating income
Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary losses

Income before minority interests
Minority interests in income (loss)(9,903)(12,985)

Net income

754,622621,2948

Consolidated Statements of Comprehensive Income(Third quarter consolidated cumulative accounting period)(Thousands of yen)

Income before minority interests

3Q Fiscal 2014
(From April 1, 2013
to December 31, 2013)
744,718

3Q Fiscal 2015
(From April 1, 2014
to December 31, 2014)
608,309

232,973

266,257(12,022)64,957543,252

797,153(63,174)--(167,921)

5,716

102,474

706,746

1,062,921

1,451,465

1,671,230

1,449,505

1,681,722

1,959(10,491)

Other comprehensive income (loss)
Valuation difference on otheravailable-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Pension liability adjustment of foreignsubsidiaries
Remeasurements of defined benefit plans, netof taxShare of other comprehensive gain of
associates accounted for using equity method
Total other comprehensive income (loss)
Total comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests9(3) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
None(Segment Information)
I. First nine months of the fiscal year ended March 31, 2014 (From April 1, 2013 to
December 31, 2013)
1. Information on net sales, income and loss by reporting segment
Reporting segment(Thousands of yen)Amounts intheAdjustments*1 consolidated
financialstatements*2

Collagenmaterial
business

Formulasolutionbusiness

Total

Sales to third parties
Inter-segment sales
and transfers

16,636,438

7,812,893

24,449,332-

24,449,332

1,101,271-

1,101,271(1,101,271)

-

Total

17,737,710

7,812,893

25,550,604(1,101,271)

24,449,332

Segment income

1,171,494

719,181

1,890,675(1,013,814)

876,860

Net sales(Notes) 1. Adjustment for segment income of -¥1,013,814 thousand comprises
elimination of intersegment transactions of ¥2,394 thousand and unallocatedexpenses of ¥1,016,208 thousand.
2. Segment income is adjusted against the operating income recorded in the
consolidated income statement.
2. Information on impairment loss on noncurrent assets and goodwill by reporting
segments
No items to report10II. First nine months of the fiscal year ending March 31, 2015 (From April 1, 2014 toDecember 31, 2014)
1. Information on net sales, income and loss by reporting segment
Reporting segment(Thousands of yen)Amounts intheAdjustments*1 consolidated
financialstatements*2

Collagenmaterial
business

Formulasolutionbusiness

Total

Sales to third parties
Inter-segment sales
and transfers

16,888,944

6,952,935

23,841,880-

23,841,880

1,084,067-

1,084,067(1,084,067)

-

Total

17,973,012

6,952,935

24,925,947(1,084,067)

23,841,880

857,419496,633

1,354,052(1,017,287)

336,765

Net sales

Segment income(Notes) 1. Adjustment for segment income of -¥1,017,287 thousand comprises
elimination of intersegment transactions of ¥1,623 thousand and unallocatedexpenses of ¥1,018,910 thousand.
2. Segment income is adjusted against the operating income recorded in the
consolidated income statement.
2. Information on impairment loss on noncurrent assets and goodwill by reporting
segments
No items to report11