May 10, 2018
Company name
Representative

Nitta Gelatin Inc.

Koichi Ogata,
Representative Director and President(Stock code: 4977; First Section of Tokyo Stock Exchange)
Toru Tamaoka,
Contact
Director and Executive Officer
Responsible for Administration Department
Phone Number+81-72-949-5381

Notice Concerning Recording of Extraordinary Losses (Impairment Loss on
Noncurrent Assets and Loss on Valuation of Shares of Subsidiaries),
Differences Between Full-Year Consolidated Financial Forecasts and Results,
and Differences Between Non-consolidated Financial Results
and Previous Fiscal Year’s Results
Nitta Gelatin Inc. hereby announces that it has recorded extraordinary losses for the fiscal year
ended March 31, 2018, along with reporting differences between its full-year consolidated financial
forecasts for the fiscal year ended March 31, 2018 announced on February 8, 2018 and the results
announced today.
At the same time, Nitta Gelatin also wishes to report differences between its non-consolidated
financial results for the fiscal year ended March 31, 2018 and the previous fiscal year’s results.
Details are as follows.
1. Recording of extraordinary loss (impairment loss) (consolidated)
In the collagen peptide-related business of Nitta Gelatin USA, Inc., a consolidated subsidiary, theCompany has been advancing measures to ensure competiveness into the future, with a view toachieving sustainable growth.
In light of these measures, the Company has performed a recoverability assessment based on theAccounting Standard for Impairment of Fixed Assets. As a result, Nitta Gelatin has recorded animpairment loss of ¥862 million as an extraordinary loss for the fiscal year ended March 31, 2018.
In the collagen peptide-related business of Nitta Gelatin USA, Inc., the Company will continue
working to enhance its earnings capabilities even further.
2. Recording of extraordinary loss (loss on valuation of shares of subsidiaries)(non-consolidated)
Nitta Gelatin recorded a loss on valuation of shares of subsidiaries of ¥2,003 million as an
extraordinary loss for the fiscal year ended March 31, 2018. This loss was due to a substantial
decrease in the valuation of the fair value of shares of consolidated subsidiaries, Nitta Gelatin USA,
Inc. and Reva Proteins Ltd.
The extraordinary loss will not affect the consolidated business results, as the entire amount will
be eliminated in Nitta Gelatin’s consolidated financial statements.

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3. Differences between full-year consolidated financial forecasts for the fiscal year ended
March 31, 2018 and results (from April 1, 2017 to March 31, 2018)
Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners ofthe parent

Net income
per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecast (A)37,4001,100

1,000600¥32.66

Results for the Year Ended
March 2017 (B)37,777

1,095

1,009(615)¥(33.50)

Difference (B-A)

377(4)

9(1,215)―% change(Reference)
Results for the previous fiscal
year (ended March 31, 2017)

1.0(0.4)

0.9

―

―

36,575

1,617

1,831

693

37.74

Reasons for the difference
Net sales surpassed the previous forecast, owing to firm sales in Japan. On the earnings front, both
operating income and ordinary income were largely in line with the previous forecasts. Meanwhile,
net income attributable to owners of the parent fell below the previous forecast mainly due to therecording of an extraordinary loss (impairment loss), as detailed in the above Item 1.
4. Differences between non-consolidated financial results for the fiscal year ended March 31,2018 (from April 1, 2017 to March 31, 2018) and the previous fiscal year’s results
Net sales

OperatingincomeOrdinary
incomeNet income

Net income
per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

22,902

1,229

1,647

(663)

¥36.14

23,210863

1,039(1,256)¥(68.37)

Difference (B-A)

308(366)(608)(1,920)―% change(1.3)(29.8)(36.9)――Results for the Year Ended
March 2017(A)Results for the Year Ended
March 2017 (B)Reasons for the difference
Net sales surpassed the previous fiscal year’s result. The increase in net sales was mainly due tosolid sales of edible gelatin and gelatin for capsules, and firm sales of collagen peptide in thesupplement market.
Meanwhile, operating income, ordinary income, and net income fell below the previous fiscal
year’s results, as a result of persistently high resource prices and foreign exchange losses due tofluctuations in foreign exchange market conditions, as well as the recording of an extraordinary loss
(loss on valuation of shares of subsidiaries), as detailed in the above Item 2.

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