February 13, 2023

Consolidated Financial Resultsfor Nine Months Ended December 31, 2022
(Japanese Accounting Standards)
Name of the Listed Company: Nitta Gelatin Inc.
Listing:
Prime Market of Tokyo Stock Exchange
Stock code:
4977
URL:
http://www.nitta-gelatin.co.jp
Representative:
Koichi Ogata, Representative Director and President
Contact Person:
Norifumi Nagaoka, Director and Executive Officer;
General Manager of General Management Division
Tel: +81-72-949-5381
Scheduled date to file Quarterly Securities Report: February 13, 2023
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 nine months ended December 31, 2022
(April 1, 2022 to December 31, 2022)(1) Consolidated operating results
Net sales
Nine months ended
December 31, 2022
December 31, 2021

Millions of yen%

Operating income

Ordinary income

Net income
attributable toowners of the parent

Millions of yen

Millions of yen%

Millions of yen

75.2
12.5894622%

29,285
26.8
2,050
102.9
2,089
23,095
(0.1)
1,010
(9.1)
1,192
Note: Comprehensive income
For the nine months ended December 31, 2022: ¥1,601 million (18.7%)
For the nine months ended December 31, 2021: ¥1,349 million (61.0%)

Earnings per share
Nine months ended
December 31, 2022
December 31, 2021

Yen

Diluted earnings pershare
Yen

49.34
—
34.39
—
Note: Diluted earnings per share is not disclosed due to the absence of latent shares with dilution effect.

%

43.7
3.7

(2) Consolidated financial position
As ofDecember 31, 2022
March 31, 2022

Total assets

Net assets

Millions of yen

Millions of yen

41,73037,41021,887
20,562Equity ratio
%

45.4
48.3

Reference: Equity
As of December 31, 2022: ¥18,926 million
As of March 31, 2022: ¥18,082 million

2. Cash dividends
First quarter

Cash dividends per share
Second quarter
Third quarter
Fiscal year-end

Yen

Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
Fiscal year ending
March 31, 2023 (Forecasts)

Yen

Yen

―

7.00

―

―

7.00

―

Annual

Yen

Yen

7.00

14.00

9.00

16.00

Note: Changes to most recent dividend forecasts: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2023
(April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)

Net sales
Millions of yen

Full-year

39,000Operating income% Millions of yen

22.7

2,600

Net income
Earnings
attributable to owners
pershareof the parent

Ordinary income% Millions of yen

66.6

2,900

% Millions of yen

67.2

1,400%

Yen

92.7

77.21

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): NoneNew:
None
Excluded:None(2) Adoption of special accounting methods for the preparation of quarterly consolidated financialstatements: None
(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:
Noneb. Changes in accounting policies due to reasons other than a. above: Nonec. Changes in accounting estimates: None
d. Restatement of revisions: None(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, 2022:
18,373,974 shares
As of March 31, 2022:
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of December 31, 2022:
240,939 shares
As of March 31, 2022:
268,739 sharesc. Average number of shares
For the nine months ended December 31, 2022:
For the nine months ended December 31, 2021:

18,119,135 shares
18,092,966 shares* This financial report falls outside the scope of quarterly review procedures by Certified Public Accountantsor the independent auditor.
* Proper use of earnings forecasts, and other special matters(Note concerning forward-looking statements)
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. Thesestatements do not guarantee that the Company will achieve its earnings forecasts. In addition, actual businessand other results may differ substantially due to various factors. For details on the conditions assumed andthe 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 4 of the Attachment to this report.

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. Basic Approach to Selection of Accounting Standard ······················································· 43. Quarterly Consolidated Financial Statements and Key Notes ············································ 5(1) Consolidated Balance Sheets ················································································· 5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ····· 7Consolidated Statements of Income
Third quarter consolidated cumulative accounting period ················································· 7Consolidated Statements of Comprehensive IncomeThird quarter consolidated cumulative accounting period ················································· 8(3) Notes to Quarterly Consolidated Financial Statements ··················································· 9(Note Concerning Going Concern Assumption) ··························································· 9(Note Concerning Significant Changes in Shareholders’ Equity) ········································ 9(Additional Information) ······················································································ 9(Segment Information) ························································································· 91

1. Qualitative Information Concerning Quarterly Financial Statements(1) Description of Business Results
In the first nine months of the fiscal year ending March 31, 2023 (April 1 to December 31, 2022),
the impact of the COVID-19 pandemic on global economic activities overall became smaller
despite differences seen in countermeasures undertaken by each country. However, the situation
surrounding the Nitta Gelatin Group remained challenging due to soaring raw materials andenergy prices caused by the protraction of Russia’s invasion of Ukraine.
In June 2022, the Group announced a business strategy containing the 10-year vision of“Helping to improve people’s quality of life with collagen” and declared as specific measures a“Shift away from general-purpose gelatin products to high-value-added collagen peptides,
concentrating resources on markets with high growth potential to improve profitability.”
Under this business strategy, the Group worked to provide a stable supply of products in order
to meet rampant demand from customers in the Food Solutions, Health Support, and Specialties
domains, and took steps to revise product prices as appropriate. In the health support category, theGroup worked to increase sales by rebranding and strengthening marketing of collagen healthfoods for general consumers. In addition, in December 2022, the Company completed
construction of Mirai-can, a new research, development and manufacturing building for creating
new products leading to new business domains that consolidates its research, development andmanufacturing functions for biomedical products as well as research and development functionsof all departments.
As a result of the above, net sales increased 26.8% year on year to ¥29,285 million driven bysales growth in each domain and foreign exchange effects on overseas sales. Operating incomerose 102.9% year on year to ¥2,050 million underpinned by sales growth overseas, ordinary
income increased 75.2% to ¥2,089 million, and as a result, net income attributable to owners ofthe parent increased 43.7% to ¥894 million.
The Nitta Gelatin Group's collagen business is the Company’s only reporting segment. An
overview of the performance of each sales category is as follows:
Food Solutions
In the food solutions category, sales remained strong in Japan and North America, leading to anincrease in net sales overall.
In Japan, sales of gummy candies by customers remained positive, leading to increased netsales. Net sales also rose thanks to increased sales of gelatin for industrial-use soups andseasonings, along with industrial-use small-portion products, following the recovery of demandin the food service industry owing to the lifting of COVID-19 restrictions. Additionally, net sales
for convenience store delicatessen items increased.
Overseas, net sales increased on robust demand for food applications in North America.
As a result, overall sales in the food solutions category increased 24.4% year on year to¥11,516 million.
2Health Support
In the health support category, overall net sales rose amid the increase in sales of gelatin for
capsules and collagen peptide.
In Japan, net sales of collagen peptide for health and beauty applications and gelatin for
capsules increased in response to rising customer demand with expectations of a recovery inin-bound tourism demand. Also, in the direct sales business, which sells collagen health foods togeneral consumers using direct marketing, net sales increased, with aggressive advertising alsocontributing.
Overseas, sales of collagen peptide were strong in North America, but sales of collagen peptide
for health and beauty applications declined in Asia due to economic weakness and a dampening
in consumer sentiment amid rising inflation. However, net sales of gelatin for capsules rosebuoyed by rising health and prevention awareness during the COVID-19 pandemic in North
America and India.
As a result, overall sales in the health support category increased 24.0% year on year to¥13,946 million.
Specialties
In the specialties category, overall net sales increased by 47.2% year on year to ¥3,822 million
amid the continued increase in net sales of calcium phosphate, a by-product, owing to risingdemand from feed and fertilizer applications and higher market prices.

(2) Description of Financial Position(Assets)
Total assets amounted to ¥41,730 million at December 31, 2022, ¥4,319 million higher than at
March 31, 2022. This was mainly attributable to a decrease in cash and deposits of ¥915 million,
compared to increases in notes and accounts receivable—trade of ¥1,531 million, inventories of¥2,629 million, other current assets of ¥333 million, and property, plant and equipment of ¥629
million.
(Liabilities)
Total liabilities stood at ¥19,842 million at December 31, 2022, ¥2,994 million higher than at
March 31, 2022. This was mainly attributable to a decrease in other current liabilities of ¥368
million, compared to increases in notes and accounts payable—trade of ¥950 million, short-termloans payable of ¥1,077 million, and long-term loans payable of ¥1,277 million (including loans
repayable within one year).
(Net assets)
Total net assets amounted to ¥21,887 million at December 31, 2022, ¥1,325 million higher than at3

March 31, 2022. This was mainly attributable to increases in retained earnings of ¥640 million,
foreign currency translation adjustments of ¥302 million, and non-controlling interests of ¥481
million.
As a result, the equity ratio stood at 45.4% at December 31, 2022 compared with 48.3% at
March 31, 2022.

(3) Description of Consolidated Business Forecasts and Other Forward-looking
Information
In regard to the consolidated business forecasts for the fiscal year ending March 31, 2023, nochanges have been made to the consolidated business forecasts in “Notice Regarding Differences
between Forecast and Actual Consolidated Financial Results for the First Half of FY2023,
Revisions to Full-Year Forecast of Consolidated Financial Results and Revisions to Dividend
Forecast” released on November 14, 2022.
Actual business and other results may differ substantially from projections due to variousfactors.

2. Basic Approach to Selection of Accounting Standard
The Nitta Gelatin Group plans to prepare its consolidated financial statements based on Japanese
accounting standards in the near future. This is in consideration of the need to ensure that theconsolidated financial statements can be readily compared between different periods and different
companies.
Looking ahead, considering its management policies and various conditions in Japan andabroad, Nitta Gelatin plans to examine the adoption of International Financial ReportingStandards (IFRS). In doing so, the Group will take into account trends such as the adoption ofIFRS by its peer companies.

43. Quarterly Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Millions of yen)

Fiscal 2022
(As of March 31, 2022)
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
Goodwill
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

53Q Fiscal 2023
(As of December 31, 2022)

3,046
7,389
5,955
1,396
3,104
588
(16)
21,465

2,130
8,920
6,796
1,228
5,061
922
(8)
25,052

3,409
2,474
4,532
10,416

4,796
2,711
3,537
11,045

232
275
507

209
249
459

3,363
1,775
(117)
5,021
15,94537,410

3,464
1,836
(127)
5,173
16,67841,730(Millions of yen)

Fiscal 2022
(As of March 31, 2022)
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

3Q Fiscal 2023
(As of December 31, 2022)

2,745
2,271
1,909
171
224
3,399

3,695
3,349
2,177
282
174
3,031

Total current liabilities
Noncurrent liabilities
Long-term loans payable
Net defined benefit liability
Other

10,721

12,710

3,573
1,560
992

4,583
1,627
921

Total noncurrent liabilities
Total liabilities
Net Assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

6,126
16,848

7,132
19,842

3,144
2,965
10,181
(179)

3,144
2,964
10,822(160)

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on other available-for-salesecurities
Deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

16,112

16,770

1,231

1,231

46
540
151
1,969
2,479
20,56237,410

(5)
842
88
2,156
2,960
21,887
41,7306

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

Nine Months Ended
December 31, 2021
(From April 1, 2021
to December 31, 2021)
23,095
18,113

Net sales
Cost of sales

Nine Months Ended
December 31, 2022
(From April 1, 2022
to December 31, 2022)
29,28522,267Gross profit on sales

4,981

7,018

Selling, general and administrative expenses

3,970

4,967

Operating income

1,010

2,050

2
45
43
143
40

259
43
60
50

Total non-operating income

274

217

Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other75
106137
33
892

178

1,192

2,0890—046046052
—
——
555
3152

92

Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Other

Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Compensation for expropriation
Total extraordinary gains
Extraordinary losses
Loss on sale of noncurrent assets
Loss on retirement of noncurrent assets
Expenses related to relocation
Impairment loss
Total extraordinary losses
Income before provision for income taxes

1,1402,043

Income taxes

322

605

Net income

817

1,437

Net income attributable to non-controlling interests

195543

Net income attributable to owners of the parent

622

894

7

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

Nine Months Ended
December 31, 2021
(From April 1, 2021
to December 31, 2021)
817

Net income
Other comprehensive income
Valuation difference on other available-for-salesecurities
Deferred gains on hedges
Foreign currency translation adjustments
Pension liability adjustment
Share of other comprehensive losses of associates
accounted for using equity method
Total other comprehensive income
Total
comprehensive income
Comprehensive
income attributable to:
Owners of the parent
Non-controlling interests

8

Nine Months Ended
December 31, 2022
(From April 1, 2022
to December 31, 2022)
1,437

209

0(6)
219
3375

(53)
164
(74)
126

531
1,349

164
1,601

1,102
247

1,080
521

(3) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
The Company disposed of 27,800 shares of treasury stock effective August 5, 2022 as restricted
share-based remuneration based on a resolution at the Board of Directors meeting held on July 21,2022.
As a result, treasury stock decreased by ¥18 million and capital surplus by ¥1 million in thefirst nine months of the year ending March 31, 2023. Capital surplus totaled ¥2,964 million andtreasury stock ¥160 million at December 31, 2022.
(Additional Information)
There have been no material changes to the assumptions regarding the impact of the COVID-19
pandemic set out in the (Material Accounting Estimates) of the Securities Report for the previous
fiscal year.
(Segment Information)
I. Nine Months Ended December 31, 2021 (From April 1, 2021 to December 31, 2021)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
II. Nine Months Ended December 31, 2022 (From April 1, 2022 to December 31, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.

9