February 5, 2016

Consolidated Financial Results
for the Nine Months Ended December 31, 2015
(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:
Koichi Ogata, 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 8, 2016
Scheduled date to commence dividend payments: Supplementary explanatory materials prepared:
None
Explanatory meeting:
None(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2015
(from April 1, 2015 to December 31, 2015)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Nine months ended
December 31, 2015
December 31, 2014

Millions of yen

Operating income%

Millions of yen

Ordinary income% Millions of yen

27,821
16.7
908
169.7
836
23,841(2.5)
336(61.6)
906
Note: Comprehensive income
For the nine months ended December 31, 2015: ¥609 million, (63.6)%
For the nine months ended December 31, 2014: ¥1,671 million, 15.1%

Net income
per share
Six months ended
December 31, 2015
December 31, 2014

%

(7.8)
(14.4)Net income attributableto owners of the parent
Millions of yen

404
621

Diluted net income
per share

Yen

Yen

22.00
－
33.81
－
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, 2015
March 31, 2015

Total assets

Net assets

Millions of yen

Millions of yen

39,34033,932

17,594
15,373

Reference: Equity
As of December 31, 2015:
As of March 31, 2015:¥15,729 million¥15,271 million

Equity ratio
%

40.0
45.0

%

(34.9)(17.7)

2. Cash dividends
Cash dividends per shareFirst quarter
Fiscal year ended March
31, 2015
Fiscal year ending March
31, 2016
Fiscal year ending March
31, 2016 (Forecasts)

Second quarter

Third quarter

Fiscal year-end

Annual

Yen

Yen

Yen

Yen

Yen

–

6.00

–

6.00

12.00

–

6.00

–
6.00

12.00

Note: Changes to most recent dividend forecasts: None

3. Consolidated financial forecasts for the fiscal year ending March 31, 2016
(from April 1, 2015 to March 31, 2016)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2016

Operating income

Ordinary income

Millionsof yen%Millionsof yen%Millionsof yen%38,100

19.4

1,400

256.5

1,100

13.7

Net income
attributable to ownersof the parent
Millions%of yen500(18.0)Net income
per share
Yen
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): Yes
New:
1 company, Nitta Gelatin India Ltd.
Excluded: None
Note: For details, please refer to "(1) Changes in Significant Subsidiaries During the Quarterly Period Under Review" in"2. Matters Concerning Summary Information (Notes)" on page 4 of the Attachment to this report.

(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 Restatement of Revisions” in“2. Matters Concerning Summary Information (Notes)” on page 5 of the Attachment 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, 2015
18,373,974 shares
As of March 31, 2015
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of December 31, 2015
162 shares
As of March 31, 2015
162 sharesc. Average number of shares
For the nine months ended December 31, 2015
For the nine months ended December 31, 2014

18,373,812 shares
18,373,812 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 beenconcluded.

* 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 theCompany will achieve its earnings forecasts. In addition, actual business and other results may differ substantially due tovarious factors. For details on the conditions assumed and the cautionary notes and items in the financial forecasts, pleaserefer 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 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) Changes in Significant 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････････････････ 5(4)Additional Information･･･････････････････････････････････････････････････････････ 6

3. Quarterly Consolidated Financial Statements･･･････････････････････････････････････････ 7(1) Consolidated Balance Sheets ･･････････････････････････････････････････････････････ 7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ･･･ 9
Consolidated Statements of Income(Third quarter consolidated cumulative accounting period)･･･････････････････････････････ 9
Consolidated Statements of Comprehensive Income(Third quarter consolidated cumulative accounting period)･･････････････････････････････ 10(3) Notes to Quarterly Consolidated Financial Statements･･････････････････････････････････11(Note Concerning Going Concern Assumption) ･･････････････････････････････････････ 11(Note Concerning Significant Changes in Shareholders’ Equity)･･････････････････････････ 11(Segment Information)･･････････････････････････････････････････････････････････ 11

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, 2016, the global economic
situation remained uncertain, clouded by low oil prices, turmoil in the financial markets,and the deceleration of the Chinese economy among other factors. On the other hand,
the U.S. and other advanced nations continued to record moderate growth. The Japanese
economy saw steady corporate earnings due to capturing inbound tourism demand andother factors. However, this trend in Japan could conceivable be affected if theeconomies of China and other Asian emerging countries were to decline.
Nitta Gelatin has manufactured and sold gelatin in India ever since it entered themarket there in 1975 to procure raw materials for gelatin. Since then, operations in India
have become an important base for procuring raw materials and processing supplies ofHalal-certified products. In order to further integrate these operations with the Groupand strengthen the global business foundation going forward, equity-method affiliate
Nitta Gelatin India Ltd. and its local Indian affiliates Bamni Proteins Ltd. and Reva
Proteins Ltd. were consolidated as subsidiaries of Nitta Gelatin in April 2015.
As a result of the above, in the first nine months of the fiscal year ending March 31,
2016 net sales increased 16.7% year on year to ¥27,821 million. Operating income
increased 169.7% to ¥908 million, but ordinary income declined by 7.8% to ¥836
million, mainly due to a decline in foreign exchange gains. As a consequence of the¥661 million in extraordinary income and ¥662 in extraordinary loss the Company
reported in connection with consolidating the three companies in India as subsidiaries
and converting a subsidiary in China into an equity-method affiliate, among otherfactors, net income attributable to owners of the parent decreased 34.9% year on year to¥404 million.
Segment business performance was as follows:(a) Collagen Material BusinessIn the gelatin field, sales of edible gelatin and gelatin for capsules increased steadily inJapan. In North America, sales growth was slowed by an increase in European imports
as a result of the dollar strengthening, which drove sales prices down. However, on thewhole, the gelatin business saw a substantial increase in sales. This was in part due to a
¥2,635 million contribution to net sales resulting from the consolidation of Nitta Gelatin
2

India Ltd. and two other Indian affiliates as subsidiaries in April 2015.
Collagen peptide sales increased due to strong sales for use as health foods, driven byrising demand and other factors, as well as further adoption for use in general foodproducts.
Collagen casing sales and profits declined following a fall in exports from North
America due to the appreciation of the U.S. dollar.
As a result, net sales in the segment rose 23.8% year on year to ¥20,906 million,
along with a 55.3% increase in segment profit (operating income) to ¥1,331 million.
(b) Formula Solution Business
Food material sales were level year on year; however, profit declined due to an increasein the price of raw materials.
Adhesives sales on the whole declined due to a customer in the hygiene products
market switching to use another company’s products, and a contraction in the
bookbinding market, although sales for use in packaging were little changed year on
year. Profit, on the other hand, increased in line with efforts to reduce cost.
Furthermore, sales are expected to increase going forward due to the resumption of
supply from the Company to the customer in the hygiene products market.
As a result, net sales in the segment were down 0.5% year on year to ¥6,915 million,
but segment profit (operating income) was up 22.0% to ¥606 million.

(2) Description of Financial Position
The consolidation of Nitta Gelatin India Ltd., Bamni Proteins Ltd., and Reva Proteins
Ltd. as subsidiaries was a major factor behind change in the financial position than at
March 31, 2015, the end of the previous fiscal year.
(a) Assets, liabilities and net assets(Assets)
Total assets amounted to ¥39,340 million at December 31, 2015, ¥5,408 million higher
than at March 31, 2015. This was mainly attributable to increases in inventories
including merchandise and finished goods, note and accounts receivable-trade, andproperty, plant and equipment.
(Liabilities)
Total liabilities stood at ¥21,746 million at December 31, 2015, ¥3,188 million higher
3

than at March 31, 2015. This was due mainly to increases in note and accounts
payable-trade, short-term loans payable, and long-term loans payable.
(Net assets)
Net assets amounted to ¥17,594 million at December 31, 2015, ¥2,220 million higher
than at March 31, 2015. This was mainly attributable to earned surplus, gains in foreignexchange translation adjustments and non-controlling interests.
As a result, the equity ratio stood at 40.0% at December 31, 2015, compared with45.0% at March 31, 2015.

(3) Description of Consolidated Business Forecasts and Other Forwardlooking Information
The Group’s consolidated business forecasts for the fiscal year ending March 31, 2016
are unchanged from those announced on August 6, 2015 in the “Consolidated Financial
Results for the Three Months Ended June 30, 2015.”
Actual business and other results may differ substantially from projections due tovarious factors.

2. Matters Concerning Summary Information (Notes)(1) Changes in Significant Subsidiaries During the Quarterly Period Under
Review
Equity-method affiliate Nitta Gelatin India Ltd. was consolidated as a subsidiary fromthe first quarter ended June 30, 2015, as Nitta Gelatin Inc. was deemed to be effectively
in control of it under the control or influence concept. The scope of this consolidation
included Nitta Gelatin India subsidiaries Bamni Proteins Ltd. and Reva Proteins Ltd.
While not falling under the purview of a change in specified subsidiary, consolidated
subsidiary Beijing Qiushi Collagen Casing Co., Ltd. was converted to an equity-method
affiliate from the second quarter ended September 30, 2015. This was due to a fall in
Nitta Gelatin’s shareholding ratio in the subsidiary.

(2) Application of Special Accounting Methods in the Preparation of
Quarterly Consolidated Financial Statements
None4

(3) Changes in Accounting Policies and Estimates, and Restatement ofRevisions(Changes in Accounting Policies)(Adoption of Accounting Standard and Guidance for Business Combinations)
Effective April 1, 2015, the Company has adopted the Accounting Standard for Business
Combinations (ASBJ Statement No. 21, September 13, 2013, hereinafter the "Business
Combination Accounting Standard"), Accounting Standard for Consolidated Financial
Statements (ASBJ Statement No. 22, September 13, 2013, hereinafter the "Consolidated
Accounting Standard") and Accounting Standard for Business Divestitures (ASBJ
Statement No. 7, September 13, 2013, hereinafter the "Business Divestiture AccountingStandard"). As a result, gain or loss arising from a change in the Company’s equity insubsidiaries in cases where control is retained was revised to a method recognizing themas an adjustment to capital surplus, along with recognizing the acquisition costs inconnection with business combinations as expenses in the consolidated fiscal year inwhich they arise. At the same time, for business combinations that take place on or after
April 1, 2015, the disclosure method was revised so as to restate the distribution of
acquisition cost upon provisional accounting recognition in the statements of the fiscal
year in which the combination took place. In addition, the presentation of quarterly net
income, etc. was changed, and the presentation of minority interest was changed to thepresentation of non-controlling interests. To reflect these changes, the Company has
restated the financial statements for the first nine months and the full term of theprevious consolidated fiscal year.
With regard to the adoption of the Business Combination Accounting Standard andother accounting standards, the Company has adopted the Business Combination
Accounting Standard from April 1, 2015, the beginning of the first quarter ended June30, 2015, onward in accordance with the transitional treatment set forth in Article 58-2
(4) of the Business Combination Accounting Standard, Article 44-5 (4) of theConsolidated Accounting Standard, and Article 57-4 (4) of the Business Divestiture
Accounting Standard.
The effect of this change on the quarterly consolidated financial statements for thenine months ended December 31, 2015 was negligible.

5(4) Additional Information(Changes in Presentation Basis)(Quarterly Consolidated Statements of Income)Rent income included in other under non-operating income in the consolidated
statements of income for the nine months ended December 31, 2014 was recorded on a
separate basis due to its rising materiality in the statement of income for the ninemonths ended December 31, 2015. To reflect this change in presentation basis, thestatement of income for the nine months ended December 31, 2014 was restated in thequarterly consolidated financial statements for the nine months ended December 31,
2015.
As a result, the Company has restated the ¥68 million shown as other under
non-operating income in the consolidated statement of income for the nine months
ended December 31, 2014, as rent income of ¥26 million and other of ¥42 million.
“Commissions paid,” was reported as a separate item under non-operating expenses in
the nine months ended December 31, 2014; however, since the materiality of this item
has diminished, it has been included under “Other” in non-operating expenses from thenine months ended December 31, 2015. To reflect this change in presentation basis, thefinancial statements for the nine-months ended December 31, 2014 have been restated.
As a result, ¥50 million for “commissions paid” has been included in “other” under
non-operating expenses in the statement of income for the nine months ended December
31, 2014.

6

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

Fiscal 2015
(As of March 31, 2015)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

7

3Q Fiscal 2016
(As of December 31, 2015)

2,622
6,726
4,821
1,243
2,156
470
(2)
18,038

2,917
7,604
5,412
1,606
2,324
694
(5)
20,554

4,414
4,390
2,042
10,848

4,614
5,300
4,252
14,168

69
69

365
365

3,984
990
(0)
4,974
15,89333,932

2,975
1,276
(0)
4,252
18,78639,340(Millions of yen)

Fiscal 2015
(As of March 31, 2015)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
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
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income(loss)
Valuation difference on otheravailable-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments

3Q Fiscal 2016
(As of December 31, 2015)

3,768
1,705
2,127
206
173
2,293
10,274

4,248
2,984
2,300
75
85
2,179
11,873

4,867
38
2,661
715
8,283
18,558

5,723
39
2,730
1,378
9,872
21,746

3,144
2,966
9,312
(0)
15,423

3,144
2,966
9,497
(0)
15,609

1,121

1,171

33
601

(46)
845

Remeasurements of defined benefit plans(1,908)(1,850)Total accumulated other comprehensive loss

(152)

120

102
15,37333,932

1,864
17,594
39,340Non-controlling interests
Total net assets
Total liabilities and net assets8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Third quarter consolidated cumulative accounting period)(Millions of yen)

Net sales
Cost of sales

3Q Fiscal 2015
(From April 1, 2014
to December 31, 2014)
23,841
19,407

3Q Fiscal 2016
(From April 1, 2015
to December 31, 2015)
27,821
22,136Gross profit on sales

4,434

5,684

Selling, general and administrative expenses

4,097

4,776

336

908

Operating income
Non-operating income
Interest income

013Dividend income
Rent income
Foreign exchange gains
Equity in earnings of affiliates
Other

23
26
589
59
42

29
35
34
6
50

Total non-operating income

741

170

114
57

227
14

171

242

906

836

Gain on sales of noncurrent assets－

1

Gain on negative goodwill－

502

Gain on change in equity－

157

Total extraordinary gains

－

661

20
－
20
885
277
608

41
620
662
835
377
458

(12)

53

621

404

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains

Extraordinary losses
Loss on retirement of noncurrent assets
Loss on stepped acquisitions
Total extraordinary losses
Income before provision for income taxes
Income taxes
Net income
Net income (loss) attributable to non-controllinginterests
Net income attributable to owners of the parent

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

Net income

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

Other comprehensive income (loss)
Valuation difference on otheravailable-for-sale securities
Deferred gains (losses) on hedges

3Q Fiscal 2016
(From April 1, 2015
to December 31, 2015)
458

266

50

64

(89)

Foreign currency translation adjustments

797

(322)

Pension liability adjustment

(167)

60

102

452

1,062
1,671

151
609

1,681
(10)

664
(55)

Share 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
Non-controlling interests10(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, 2015 (From April 1, 2014 toDecember 31, 2014)
1. Information on net sales, income and loss by reporting segment(Millions of yen)
Reporting segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
Total
Segment income

Amounts in the
consolidated
financialstatements*2

Collagenmaterial
business

Formulasolutionbusiness

Total

16,888

6,952

23,841－

23,841

1,084

－

1,084

(1,084)－

17,973
857

6,952
496

24,9251,354(1,084)(1,017)

23,841
336

Adjustments*1(Notes) 1. Adjustment for segment income of ¥(1,017) million comprises elimination ofintersegment transactions of ¥1 million and unallocated expenses of ¥(1,018)
million.
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II. First nine months of the fiscal year ending March 31, 2016 (From April 1, 2015 to
December 31, 2015)
1. Information on net sales, income and loss by reporting segment(Millions of yen)
Reporting segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
Total
Segment income

Amounts in the
consolidated
financialstatements*2

Collagenmaterial
business

Formulasolutionbusiness

Total

20,906

6,915

27,821－

27,821

1,448

－

1,448

(1,448)－22,354
1,331

6,915
606

29,2691,937(1,448)(1,029)27,821
908

Adjustments*1(Notes) 1. Adjustment for segment income of ¥(1,029) million comprises elimination ofintersegment transactions of ¥(1) million and unallocated expenses of ¥(1,027)
million.
2. Segment income is adjusted against the operating income recorded in the
consolidated income statement.

2. Information on reporting segment assets
Segment assets of the Collagen Material Business had increased by ¥4,200 million
at December 31, 2015, as a result of Nitta Gelatin Inc. consolidating Nitta Gelatin
India Ltd., Bamni Proteins Ltd. and Reva Proteins Ltd. as subsidiaries in the firstquarter ended June 30, 2015.
3. Information on impairment loss on noncurrent assets and goodwill by reporting
segments(Material gain on negative goodwill)
The Collagen Material Business segment recorded a ¥502 million gain on negative
goodwill in the nine months ended December 31, 2015 as a result of the conversionof Nitta Gelatin India Ltd., Bamni Proteins Ltd. and Reva Proteins Ltd. as
subsidiaries within the scope of Nitta Gelatin Inc.'s consolidation.

12