August 6, 2015

Consolidated Financial Results
for the Three Months Ended June 30, 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: August 7, 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 three months ended June 30, 2015
(from April 1, 2015 to June 30, 2015)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Three months ended
June 30, 2015
June 30, 2014

Net income

Operating income

Ordinary income

attributable to ownersof the parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

9,182
8,016

14.5
0.3

295
240

22.8
(46.8)

304
219

38.6
(61.0)

53
158(66.0)(57.8)

Note: Comprehensive income
For the three months ended June 30, 2015: ¥663 million, 165.7%
For the three months ended June 30, 2014: ¥249 million, (52.9%)

Net income
per share
Three months ended
June 30, 2015
June 30, 2014

Yen

Diluted net income
per share
Yen

2.94
8.64
Note: Diluted net income per share is not disclosed due to the absence of latent shares with dilution effect.

(2) Consolidated financial position
As ofJune 30, 2015
March 31, 2015

Total assets

Net assets

Millions of yen

Millions of yen%

38,75633,932

17,755
15,37340.9
45.0

Reference: Equity
As of June 30, 2015: ¥15,843 million
As of March 31, 2015: ¥15,271 million

Equity ratio

2. Cash dividends
Cash dividends per shareFirst quarter

Second quarter

Third quarter

Fiscal year-end

Annual

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31,
2015

-

6.00

-

6.00

12.00

Fiscal year ending March 31,
2016

6.00

-

6.00

12.00

Fiscal year ending March 31,
2016 (Forecasts)

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)
OperatingincomeNet sales
Millionsof yenSix months ending
September 30, 2015
Fiscal year ending
March 31, 2016

(Percentages indicate year-on-year changes.)
Net income
Ordinary
Net income
attributable to owners
incomeper shareof the parent%

Millionsof yen%Millionsof yen%Millionsof yen%Yen

18,800

16.4

600

122.1

500

(6.3)

100

(73.2)

5.44

38,100

19.4

1,400

256.5

1,100

13.7

500

(18.0)

27.21

Note: Changes to most recent consolidated financial forecasts: Yes
For details on the revision of consolidated business forecasts, please refer to the press release entitled Notice Concerning Differencein Consolidated Business Forecasts and Results for the Six Months Ended September 30, 2015 and Revision of Consolidated
Business Forecasts for the Fiscal Year Ending March 31, 2016 (dated August 6, 2015).

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) Significant Changes in 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 4 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 June 30, 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 June 30, 2015
162 shares
As of March 31, 2015
162 sharesc. Average number of shares
For the three months ended June 30, 2015
For the three months ended June 30, 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 timeof 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 4of 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) 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(4) Additional Information････････････････････････････････････････････････････････････ 5
3. Quarterly Consolidated Financial Statements･･････････････････････････････････････････ 8(1) Consolidated Balance Sheets ･･････････････････････････････････････････････････････ 8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ･･ 10
Consolidated Statements of Income
First quarter consolidated cumulative accounting period････････････････････････････････ 10
Consolidated Statements of Comprehensive Income
First quarter consolidated cumulative accounting period････････････････････････････････ 11(3) Notes to Quarterly Consolidated Financial Statements･････････････････････････････････ 12(Note Concerning Going Concern Assumption) ･････････････････････････････････････ 12(Note Concerning Significant Changes in Shareholders’ Equity)･････････････････････････ 12(Segment Information)･･････････････････････････････････････････････････････････ 12(Note Concerning Business Combination) ･･････････････････････････････････････････ 14

1

1. Qualitative Information Concerning Quarterly Financial Statements(1) Description of Business Results
In the first quarter of the year ending March 31, 2016, the outlook for the global
economy was uncertain, despite an ongoing recovery in the U.S. business climate and a
gradual recovery in Europe. This outlook reflected concerns over the Greek debt
problem and a further slowdown of economic growth in China. Meanwhile, Japan’s
economy showed a gradual recovery trend in which capital investment and personal
consumption are in the process of improving, due to a persistently weaker yen andhigher stock prices, and an uptake in corporate and household incomes.
Amid these circumstances, the Nitta Gelatin Group continued to encounterchallenging business conditions. These included procurement costs of raw materials thathave remained high and concerns that energy costs may rise because of the weaker yen.
To surmount these problems, the Group worked to diversify its procurement of raw
materials and reduce costs. The Company also endeavored to strengthen its global
business foundation further by consolidating affiliate companies Nitta Gelatin India Ltd.,
Bamni Proteins Ltd. and Reva Proteins Ltd. in India as subsidiaries.
As a result of the above, including the consolidation of the three companies in India
as subsidiaries, net sales increased 14.5% year on year to ¥9,182 million in the firstquarter of the fiscal year ending March 31, 2016. Operating income increased 22.8% to¥295 million and ordinary income increased 38.6% to ¥304 million. As a consequenceof the ¥502 million in extraordinary income and ¥620 in extraordinary loss theCompany reported in connection with consolidating the three companies in India as
subsidiaries, net profit attributable to owners of the parent decreased 66.0% year on year
to ¥53 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 competition with the Group’s
European rivals driving sales prices down. But with the consolidation of the threecompanies in India as subsidiaries contributing ¥844 million to consolidated revenue
from the first quarter, the Nitta Gelatin Group experienced a substantial increase ingelatin sales.
Collagen peptide sales increased, driven by their greater adoption in general foodproducts in addition to their strong sales as health food.

2

Sales of collagen casing remained about the same as in the first quarter of theprevious fiscal year.
As a result, net sales in the segment rose 27.9% year on year to ¥6,874 million, alongwith a 20.1% increase in segment profit (operating income) to ¥386 million.
(b) Formula Solution Business
Sales of food materials as ingredients for confectionary and deserts were little changed.
However, they fell overall and profits decreased from the first quarter of the previous
fiscal year due to delays in new adoption in the market for ready-made delicatessen
items.
Adhesives sales decreased year on year in the first quarter due to a customer in the
hygiene products market switching to a Chinese supplier and a contraction in the
bookbinding market. Profit, on the other hand, increased as a result of efforts to reducecost.
As a result, net sales in the segment were down 12.6% year on year to ¥2,308 million,
but segment profit (operating income) was up 1.1% to ¥262 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.
(Assets)
Total assets amounted to ¥38,756 million at June 30, 2015, ¥4,824 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, and property, plantand equipment.
(Liabilities)
Total liabilities stood at ¥21,000 million at June 30, 2015, ¥2,442 million higher than at
March 31, 2015. This was due mainly to increases in notes and accounts payable-trade,and short-term loans payable.
(Net assets)
Net assets amounted to ¥17,755 million at June 30, 2015, ¥2,381 million higher than at
March 31, 2015. This was mainly attributable to gains in foreign exchange translation
adjustments and non-controlling interests.
As a result, the equity ratio stood at 40.9% at June 30, 2015, compared to 45.0% at
March 31, 2015.
3

(3) Description of Consolidated Business Forecasts and Other Forwardlooking Information
The Group has revised its consolidated business forecasts for the fiscal year ending
March 31, 2016, which were announced in the "Consolidated Financial Results for the
Fiscal Year Ended March 31, 2015 (Japanese Accounting Standards)" on May 11, 2015.
Please refer to the press release entitled Notice Concerning Revision of Consolidated
Business Forecasts (Dated August 6, 2015) for details of the revision. Actual businessand other results may differ substantially from projections due to various factors.

2. Matters Concerning Summary Information (Notes)(1) Significant Changes in 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 Ltd. subsidiaries Bamni
Proteins Ltd. and Reva Proteins Ltd.

(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)(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 in4subsidiaries 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
revised the financial statements for the previous first-quarter year-to-date period and 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 thethree months ended June 30, 2015 was negligible.

(4) Additional Information(Change in Material Subsidiary Associated with Change in Joint Venture
Agreement)
Nitta Gelatin Inc.’s Board of Directors resolved at a meeting held on May 19, 2015 tochange the content of a joint venture agreement of consolidated subsidiary Beijing Nitta
Collagen Casing Co., Ltd. As a result of the change, Beijing Nitta Collagen Casing Co.,
Ltd. will change from a consolidated subsidiary to an equity-method affiliate of Nitta
Gelatin Inc. Details follow.
1. Reason and method for the change associated with the change in joint ventureagreement
As a result of a change in the joint venture agreement between Nitta Hong Kong Ltd.
and Beijing Qiushi Agriculture Development Co., Ltd., Beijing Qiushi Agriculture
Development Co., Ltd. will make an additional investment in Beijing Nitta Collagen5

Casing Co., Ltd. Consequently, the shareholding ratio of Nitta Hong Kong Ltd. in
Beijing Nitta Collagen Casing Co., Ltd. after the change in the joint agreement willbe 30%, changing Beijing Nitta Collagen Casing Co., Ltd. from a consolidated
subsidiary to an equity-method affiliate of Nitta Gelatin Inc.
Note: Nitta Hong Kong Ltd. is a wholly owned subsidiary of Nitta Gelatin Inc.’s consolidated
subsidiary Nitta Casings Inc.

2. Overview of subsidiary undergoing change(1) Name:

Beijing Nitta Collagen Casing Co., Ltd.

(2) Location:

Beijing, People’s Republic of China(3) Representative:

Rodney Moore(4) Business activities:

Production and sales of collagen casing(5) Paid-in capital:

US$ 3 million(6) Date of establishment: September 20, 2012(7) Shareholding ratios:

Nitta Hong Kong Ltd.

70%

Beijing Qiushi Agriculture Development Co., Ltd.

30%

3. Overview of Beijing Qiushi Agriculture Development Co., Ltd.
(1) Name:

Beijing Qiushi Agriculture Development Co., Ltd.

(2) Location:

Beijing, People’s Republic of China(3) Representative:

Du Daxue(4) Business activities:

Processing and sales of sheep casing(5) Paid-in Capital:

RMB 66 million(6) Date of establishment: December 1979
4. Change in shareholding ratio(1) Shareholding ratios before change in joint venture agreement

Nitta Hong Kong Ltd.
Beijing Qiushi Agriculture Development Co., Ltd.

Paid-in capital(US$ thousand)
2,100

Shareholding
ration
70%

900

30%

3,000

100%

(2) Shareholding ratios after change in joint venture agreement

Nitta Hong Kong Ltd.
Beijing Qiushi Agriculture Development Co., Ltd.

6

Paid-in capital(US$ thousand)
2,100

Shareholding
ration
30%

4,900

70%

7,000

100%

5. Schedule:
May 19, 2015
Resolution of the Board of Directors of Nitta Gelatin Inc.
May 22, 2015
Resolution of the Board of Directors of Beijing Nitta Collagen Casing Co., Ltd.
The date of the change will be the date of the additional investment, following
approval by the Chinese regulatory authorities
6. Outlook
The impact of this change on the consolidated financial results for the fiscal year
ending March 31, 2016 is currently being assessed. Nitta Gelatin Inc. will promptly
disclose any material impact that may arise.

7

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

Fiscal 2015
(As of March 31, 2015)

1Q Fiscal 2016
(As of June 30, 2015)

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

2,565
7,064
5,234
1,710
2,493
685
(4)
19,748

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

4,840
5,849
4,062
14,751

69
69

384
384

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

2,819
1,052
(0)
3,871
19,00738,756

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

8

(Millions of yen)

Fiscal 2015
(As of March 31, 2015)

1Q Fiscal 2016
(As of June 30, 2015)

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

4,089
3,295
2,064
145
289
2,159
12,043

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

4,710
38
2,776
1,431
8,957
21,000

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

3,144
2,966
9,257
(0)
15,369

1,121

1,160

33
601

11
1,226

(1,908)(1,924)

(152)

474

102
15,37333,932

1,911
17,75538,756

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
Remeasurements of defined benefit plans
Total accumulated other comprehensive
income (loss)
Minority interests
Total net assets
Total liabilities and net assets

9(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Consolidated Statements of Income(First quarter consolidated cumulative accounting period)(Millions of yen)

1Q Fiscal 2015
(From April 1, 2014
to June 30, 2014)
8,016
6,417

1Q Fiscal 2016
(From April 1, 2015
to June 30, 2015)
9,182
7,337

Gross profit on sales

1,599

1,845

Selling, general and administrative expenses

1,358

1,549

240

295

0
11

4
14
75

Net sales
Cost of sales

Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Equity in earnings of affiliates
Other

－
24
17

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses

－
20

53

114

33
37

86

Other

－
4

－
13
6

Total non-operating expenses

74

105

219

304

－

502

－

502

2

1
620
622
184
153
31
(22)
53

Ordinary income
Extraordinary gains
Total extraordinary gains
Extraordinary losses
Loss on retirement of noncurrent assets

－
2
216
60
155
(2)
158

Total extraordinary losses
Income before provision for income taxes
Income taxes
Net income
Net loss attributable to non-controlling interests
Net income attributable to owners of the parent

10

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

1Q Fiscal 2015
(From April 1, 2014
to June 30, 2014)
155

1Q Fiscal 2016
(From April 1, 2015
to June 30, 2015)
31

89

39

3

(3)

(15)

165

48

(13)

(32)

444

94

632

249

663

Owners of the parent

255

680

Non-controlling interests

(5)

(17)

Net income
Other comprehensive income (loss)
Valuation difference on otheravailable-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans, netof taxShare of other comprehensive loss of
associates accounted for using equity method
Total other comprehensive income (loss)
Total comprehensive income
Comprehensive income attributable to:11(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 three months of the fiscal year ended March 31, 2015 (From April 1, 2014 toJune 30, 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 andtransfers
Total
Segment income

Amounts in the
consolidated
financialstatements*2

Collagenmaterial
business

Formulasolutionbusiness

Total

Adjustments*1

5,375

2,641

8,016

－

8,016

346

－

346

(346)

－

5,721
321

2,641
259

8,362
581

(346)
(340)

8,016
240

(Notes) 1. Adjustment for segment income of ¥(340) million comprises
elimination of intersegment transactions of ¥0 million and unallocatedexpenses of ¥(341) 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 report12II. First three months of the fiscal year ending March 31, 2016 (From April 1, 2015 toJune 30, 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 andtransfers
Total
Segment income

Collagenmaterial
business

Formulasolutionbusiness

Total

Adjustments*1

Amounts in the
consolidated
financialstatements*2

6,874

2,308

9,182

－

9,182

413

－

413

(413)

－

7,288
386

2,308
262

9,596
648

(413)
(353)

9,182
295

(Notes) 1. Adjustment for segment income of ¥(353) million comprises
elimination of intersegment transactions of ¥(7) million andunallocated expenses of ¥(346) 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 ¥4,207 million
at June 30, 2015 as a result of Nitta Gelatin Inc. consolidating Nitta Gelatin India
Ltd., Bamni Proteins Ltd. and Reva Proteins Ltd. as subsidiaries.
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 three months ended June 30, 2015 as a result of theconversion of Nitta Gelatin India Ltd., Bamni Proteins Ltd. and Reva Proteins Ltd.
as subsidiaries within the scope of Nitta Gelatin Inc.’s consolidation.

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(Business combinations)(Subsidiary conversion as a result of rising involvement in management)
1. Overview of business combination(1) Name of acquired company and its business activities:(a) Name of acquired company: Nitta Gelatin India Ltd.
Business activities: Production and sales of ossein from bovine bones, bovinebone gelatin and collagen peptide(b) Name of acquired company: Bamni Proteins Ltd.
Business activities: Production of ossein from bovine bones(c) Name of acquired company: Reva Proteins Ltd.
Business activities: Production of ossein from bovine bones(2) Main reasons for the business combination:
The business combination was implemented to establish a framework for
responding to market conditions with greater flexibility and to further strengthen
Nitta Gelatin Inc.’s global business platform.
(3) Business combination date:
April 1, 2015 (effective acquisition date)(4) Statutory basis for business combination:
Control of decision-making bodies(5) Name of the companies after business combination:
No change(6) Acquired voting interest:(a) Nitta Gelatin India Ltd.
Voting interest held before the business combination: 43.0%
Additional voting interest acquired on the business combination date: -%Voting interest after the business combination: 43.0%(b) Bamni Proteins Ltd.
Voting interest held before the business combination: 17.7%
Additional voting interest acquired on the business combination date:
82.3% (indirectly held)
Voting interest after the business combination: 100.0% (82.3% indirectly held)(c) Reva Proteins Ltd.
Voting interest held before the business combination: 25.5%
Additional voting interest acquired on the business combination date:
74.5% (indirectly held)
Voting interest after the business combination: 100.0% (74.5% indirectly held)14

(7) Main rationale for deciding on the acquired companies
Judging by a comprehensive range of factors, such as the reliance of the acquiredcompanies on Nitta Gelatin Inc. for business and personnel support, Nitta Gelatin
Inc.'s influence over the acquired companies had increased, and as a result, Nitta
Gelatin Inc. was recognized to have control over the decision-making bodies of
the acquired companies.
2. Period of business results of the acquired companies included in Nitta Gelatin Inc.’s
consolidated statement of income for the three months ended June 30, 2015:
From April 1, 2015 to June 30, 2015
3. Acquisition cost of the acquired companies and the type of consideration:
Fair value of ¥1,055 million on the shares Nitta Gelatin Inc. held in the acquiredcompanies on the business combination date
4. Difference between the acquisition cost for the acquired companies and the total
amount of the acquisition costs for each transaction leading to the acquisition:¥620 million loss on stepped acquisition
5. Amount and cause of gain on negative goodwill(1) Amount of gain: ¥502 million(2) Cause of gain:
Fair value of net assets of the acquired companies exceeded the acquisition coston the business combination date.

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