December 19, 2019
Company name
Representative

Nitta Gelatin Inc.
Koichi Ogata,
Representative Director and President(Stock code: 4977; First Section of Tokyo Stock Exchange)
Norifumi Nagaoka,Contact
Director and Executive Officer
General Manager of General Management Division
Phone Number+81-72-949-5381

Notice Regarding Changes at Specified Subsidiary and Subsidiary
Nitta Gelatin Inc. (hereinafter “Nitta Gelatin”) hereby announces that its board of directors passed aresolution today to transfer shares of Nitta Casings Inc., its specified subsidiary, and Nitta Casings(CANADA) Inc., its subsidiary. The details for these transfers are listed below.

1. Reason for transfer of shares
Nitta Gelatin is steadily advancing business strategies and moving ahead with selection andconcentration in core business areas as stated under its management policy. As part of the policy, Nitta
Gelatin will focus on its core business areas and agreed to the share transfer after deciding that it
would be better for the enhancement of medium- to long-term corporate value of both companies topromote the integration of Nitta Casings and Nitta Casings (CANADA) and Viscofan USA Inc. andViscofan Canada Inc., which have expertise in the casings business.

2. Overview of specified subsidiary and subsidiary to undergo changes(Overview of Nitta Casings Inc.)
(1)
Name
(2)
Location of head office(3)
Representative, Name
(4)
Business activities(5)
Paid-in capital(6)
Date of establishment
Shareholder,(7)
Shareholding ratio

Nitta Casings Inc.
141 Southside Ave, Bridgewater Township, New Jersey, USACEO, Rodney Eugene Moore
Production and sales of collagen casing
US$27,400,000 (¥2,957 million)
August 1996
Nitta Gelatin 97.2%, Nitta Gelatin Holdings, Inc. 2.3%

Nitta Casings Inc. is a wholly owned consolidated subsidiaryof Nitta Gelatin and Nitta Gelatin Holdings, Inc., a subsidiary
Affiliation with Nittaof Nitta Gelatin.
(8)Gelatin
Personal-related Four directors dispatched from Nitta Gelatin.
Trade-related
No special affiliation.
(9) Financial condition and operating results of the company for the past three years(Unit: Millions of yen)
Fiscal period
FY ended March 2017
FY ended March 2018
FY ended March 2019
Net assets
112444(161)
Total assets
3,381
3,333
2,973Net sales
4,543
4,556
4,491
Operating income
(88)
178
(95)
Net income
(458)
148
(380)
Capital-related-1-(Overview of Nitta Casings (CANADA) Inc.)(1)
Name
Nitta Casings (CANADA) Inc.
(2)
Location of head office 57 Steelcase Road West, Markham, Ontario, Canada(3)
Representative, Name
CEO, Rodney Eugene Moore(4)
Business activities
Production and sales of collagen casing(5)
Paid-in capital
C$1,246,000 (¥101 million)(6)
Date of establishment
August 1996
Shareholder,(7)
Nitta Gelatin 100%
Shareholding ratio
Capital-related
Wholly owned consolidated subsidiary of Nitta Gelatin.
Affiliation with Nitta(8)
Personal-related Two directors dispatched from Nitta Gelatin.
GelatinTrade-related
No special affiliation.
(9) Financial condition and operating results of the company for the past three years(Unit: Millions of yen)
Fiscal period
FY ended March 2017
FY ended March 2018
FY ended March 2019
Net assets
6872
81
Total assets
202
185
182
Net sales
499
463
454
Operating income(18)220
Net income
(15)
221

3. Overview of parties receiving the transfer of equity
(1)
(2)
(3)
(4)
(5)
(6)

(7)

Name
Location of head
officeRepresentative,
Name
Business
activities
Paid-in capital
Date ofestablishment

Affiliation withNitta Gelatin

Party 1
Viscofan USA Inc.
50 County Court, Montgomery, Alabama,
USA 36105

Party 2
Viscofan Canada Inc.
290 Rue Benjamin Hudon, Saint-Laurent,Montreal, Quebec, CanadaCEO, Guillermo Eguidazu Chapa

CEO, David Flomen

Production and sales of artificial casing

Sales of artificial casing

US$35,586,000 (¥3,840 million)

C$1,000 (¥0 million)

February 1998

November 2006

Capital-related
Personal-related
Trade-relatedCorresponding status
with the relatedparties

No special affiliation.
No special affiliation.
No special affiliation.
No special affiliation.

Capital-related
Personal-related
Trade-related
Corresponding status
with the relatedparties

No special affiliation.
No special affiliation.
No special affiliation.
No special affiliation.

4. Transfer cost and status of investment before/after transfer of shares(Nitta Casings Inc.)(1)
Investment before transfer of shares(2)
Transfer amount(3)
Investment after transfer of shares

100%
US$12,150,000 (¥1,311 million)*－%(Nitta Casings (CANADA) Inc.)(1)
Investment before transfer of shares(2)
Transfer amount(3)
Investment after transfer of shares

100%
US$1,350,000 (¥145 million)*－%* The listed transfer amount is based on the calculated business value. The amount paid includes the addition of liabilities,etc. planned to be taken over by Viscofan USA Inc. and Viscofan Canada Inc.
Note that the transfer amount is subject to change depending on the final decisions made based on the transfer
contract, including financial statements on the date of transfer.

-2-5. Dates for changes (planned)
(1)
(2)
(3)

Date of board of directors’ resolution
Date to conclude contract for transfer of shares
Date of implementation for transfer of shares

December 19, 2019
December 19, 2019 (local time)
December 19, 2019 (local time)

6. Future outlook
With this transfer of shares, Nitta Casings Inc. and Nitta Casings (CANADA) Inc. will be excluded
from the scope of consolidation for Nitta Gelatin.
The Group is currently assessing the impact of this change at the special subsidiary and subsidiaryon business results and will promptly disclose any material impact that may arise for the fiscal year
ending March 2020.
Note: Rates used for conversion into Japanese yen were US$1=¥107.93 and C$1=¥81.49 (Rate as of September 30, 2019).

-3-