May 15, 2024
Company name
Representative

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

Notice Regarding the Recording of Non-operating Income (Consolidated/Non-consolidated) andExtraordinary Losses (Consolidated/Non-consolidated), Differences between the Full Year Consolidated
Financial Results Forecast and Actual Results for Fiscal 2024, and Differences between Non-consolidatedFinancial Results for Fiscal 2024 and Fiscal 2023
Nitta Gelatin Inc. (hereinafter “Nitta Gelatin) hereby announces that it has recognized non-operating income andextraordinary losses for fiscal 2024.
Nitta Gelatin also announces the differences between the full-year forecast of financial results announced on February 13,2024 and the actual results for fiscal 2024 and the differences between the non-consolidated financial results for fiscal 2024
and the actual results for fiscal 2023.

1.

Recognition of non-operating income (consolidated and non-consolidated)As a result of the settlement of foreign currency-denominated receivables and payables held by Nitta Gelatin and theGroup and the revaluation at the year-end exchange rate, foreign exchange gains of 537 million yen were recorded inconsolidated financial results and 603 million yen in non-consolidated financial results as non-operating income.

2.

Recognition of extraordinary losses (consolidated)(1) Loss on business liquidation
Nitta Gelatin USA Inc., a consolidated subsidiary of Nitta Gelatin, recorded expenses related to closure (specialretirement allowance, removal of manufacturing facilities, etc.) due to the suspension of production operations on
January 31, 2024 as a loss on business liquidation of 118 million yen.
(2) Impairment loss
In the fourth quarter of fiscal 2024, Bamni Proteins Ltd., a consolidated subsidiary of Nitta Gelatin, recorded an
impairment loss of 427 million yen due to the deterioration of the business environment and signs of impairment
resulting from the finding that effluent generated at the company's manufacturing facilities did not comply with theeffluent regulations of the Maharashtra State Pollution Control Board.
In addition, Nitta Gelatin USA Inc., a consolidated subsidiary of Nitta Gelatin, recorded an additional impairment
loss of 21 million yen in the fourth quarter of fiscal 2024 due to the termination of production operations, recording
total impairment losses of 1,783 million yen for fiscal 2024.

As a result, Nitta Gelatin’s total impairment loss for the full year was 2,210 million yen.
(3) Losses associated with suspension of production
As mentioned above, Bamni Proteins Ltd., a consolidated subsidiary of Nitta Gelatin, temporarily suspended the operationof its production facilities on March 13, 2024 after the Maharashtra State Pollution Control Board found that the company
does not conform to effluent regulations. As a result, the company recorded the estimated amount of compensation forlost work due to production cessation as a 59 million yen loss.
3.

Recognition of extraordinary losses (non-consolidated)
In the fourth quarter of fiscal 2024, Nitta Gelatin recorded an additional loss on valuation of shares of subsidiaries andassociates of 527 million yen and provision of allowance for doubtful accounts of 272 million yen because of the decline
in the real value of consolidated subsidiary Nitta Gelatin USA Inc.’s shares due to the recording of a loss on businessliquidation from the termination of production operations as described in 2. (1) above.
As a result, combined with the loss on valuation of shares of subsidiaries and associates of 267 million yen and provisionof allowance for doubtful accounts of 2,817 million yen recorded in the third quarter of fiscal 2024, the full-year loss onvaluation of shares of subsidiaries and associates will be 795 million yen and provision of allowance for doubtful accountsof 3,089 million yen, respectively.
These losses are fully eliminated in the consolidated financial statements, and as a result, there is no impact on
consolidated financial results.

4.

Differences between Full Year Consolidated Financial Results Forecast and Actual Results for Fiscal 2024
(April 1, 2023 to March 31, 2024)

Net sales

OperatingincomeOrdinary
incomeMillions of yen Millions of yen Millions of yen
Previous forecast (A)40,0001,700
1,700(announced on February 13, 2024)

Results for fiscal 2024 (B)Net income (loss)
Earnings (loss)
attributable toper shareowners of the parent
Millions of yen

Yen(2,400)(132.23)(101.98)

40,4201,836

2,382(1,850)

Difference (B–A)

420

136

682

549

Change (%)

1.1

8.1

40.1

－

39,186

2,259

2,248

1,558

Reference: Results for fiscal 2023

85.98

Reason for the Difference
Net sales exceeded the previous announcement thanks to the continued strong sales of gelatin for gummy candies in Japanand gelatin for capsules in Japan and overseas.
Operating income and ordinary income exceeded the previous announcement due to an increase in net sales and foreignexchange gains.
Net loss attributable to owners of the parent improved from the previous announcement due to an increase in operating
income and ordinary income as mentioned above, while Bamni Proteins Ltd., a consolidated subsidiary, recorded animpairment loss.

5.

Differences between Full Year Non-consolidated Financial Results for Fiscal 2023 and Fiscal 2024 (April 1, 2023 to March31, 2024)
Net sales

OperatingincomeOrdinary
incomeEarnings (loss)
per share

Millions of yenYen

22,676300

843

761

42.02Results for fiscal 2024 (B)24,846907

1,968(2,408)(132.69)

Difference (B–A)

2,170

606

1,124(3,169)

9.6

201.8

133.2

－Results for fiscal 2023 (A)Change (%)

Millions of yen Millions of yen Millions of yen

Net income(loss)

Reason for the Difference
Net sales exceeded fiscal 2023 results due to continued strong sales of gelatin for gummy candies and gelatin for capsules, aswell as revisions to appropriate prices.
Operating income and ordinary income exceeded fiscal 2023 results due to an increase in net sales and foreign exchangegains.
However, net income was lower than fiscal 2023 results due to the recording of a loss on valuation of shares of subsidiaries
and associates and provision of allowance for doubtful accounts, resulting in a net loss.