November 13, 2023

Consolidated Financial Resultsfor Six Months Ended September 30, 2023
(Japanese Accounting Standards)
Name of the Listed Company: Nitta Gelatin Inc.
Listing:Standard Market of Tokyo Stock Exchange
Stock code:
4977
URL:
http://www.nitta-gelatin.co.jp
Representative:
Koichi Ogata, Representative Director and President
Contact Person:
Kazuya Hayashi, Director and Executive Officer;
General Manager of General Management Division
Tel: +81-72-949-5381
Scheduled date to file Quarterly Securities Report: November 13, 2023
Scheduled date to commence dividend payments: December 5, 2023
Supplementary explanatory materials prepared:
Yes
Explanatory meeting:
No(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for six months ended September 30, 2023
(April 1, 2023 to September 30, 2023)(1) Consolidated operating results

Net sales
Six months ended
September 30, 2023
September 30, 2022

Millions of yen%

Operating income

Ordinary income

Net income
attributable toowners of the parent

Millions of yen

Millions of yen%

Millions of yen

1,739
1,625

7.0
133.5

690
911

%

19,711
2.8
1,344
(1.2)
19,179
29.0
1,360
129.3
Note: Comprehensive income
Six months ended September 30, 2023: ¥2,366 million (8.4%)
Six months ended September 30, 2022: ¥2,183 million (168.6%)

Earnings per share
Six months ended
September 30, 2023
September 30, 2022

Diluted earnings per
share

Yen

38.08
50.33

Yen

—
—

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

%(24.2)
143.6

(2) Consolidated financial position
As of
September 30, 2023
March 31, 2023

Total assets

Net assets

Millions of yen

Millions of yen

43,45041,614

24,40622,256

Reference: Equity
As of September 30, 2023:
As of March 31, 2023:

Equity ratio
%

47.4
45.9

¥20,574 million¥19,097 million

2. Cash dividends
First quarter
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024 (Forecasts)

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

Annual

Yen

Yen

Yen

Yen

Yen

―

7.00

―

9.00

16.00

―

8.00
―

8.00

16.00

Note: Changes to most recent dividend forecasts: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024
(April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)

Net sales
Millions of yen

Full-year

40,000Operating income% Millions of yen

2.1

2,100

Ordinary income% Millions of yen

(7.1)

2,100

Net income attributable Earnings per
to owners of the parent
share

%

Millions of yen

%

Yen

(6.6)

1,200

(23.0)

66.18

Note: Changes to most recent dividend forecasts: None

Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in achange in the scope of consolidation): None
New:
None
Excluded:None(2) Adoption of special accounting methods for the preparation of quarterly consolidated financial
statements: 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 September 30, 2023:
18,373,974 shares
As of March 31, 2023:
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of September 30, 2023:
209,739 shares
As of March 31, 2023:
240,939 sharesc. Average number of shares
For the six months ended September 30, 2023:
For the six months ended September 30, 2022:

18,141,950 shares
18,113,178 shares* This financial report falls outside the scope of quarterly review procedures by Certified Public Accountants or
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 ····························································· 4
3. Quarterly Consolidated Financial Statements and Key Notes ···················································5(1)Consolidated Balance Sheets······················································································5(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ·········· 7
Consolidated Statements of Income(First half consolidated accounting period)··································································· 7
Consolidated Statements of Comprehensive Income(First half consolidated accounting period)··································································· 8(3)Consolidated Statements of Cash Flows········································································· 9(4)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
During the six months ended September 30, 2023, the Japanese economy continued its moderate
recovery as social and economic activities picked up in conjunction with the status of COVID-19
being downgraded to a category 5 infectious disease. On the other hand, the environment surrounding
the Group remains challenging. This includes soaring resource, energy, and raw material prices
resulting from the protracted situation in Russia and Ukraine as well as foreign exchange fluctuations
and accelerating inflation worldwide.
Within its business strategy, the Group has set forth a long-term vision of “Helping to improve
people’s quality of life with collagen” and declared as a specific measure a “Shift away fromgeneral-purpose gelatin products to high-value-added collagen peptides, concentrating resources onmarkets with high growth potential to improve profitability.”
Net sales have grown under this business strategy as the Group works to expand sales in the Food
Solutions, Health Support, and Specialties domains, and takes steps to revise product prices asappropriate in response to rising raw material prices. Meanwhile, despite efforts to maintain andstabilize production and strengthen management systems globally, including in North American
operations, stabilizing operations at the Group’s plants in North America is taking time.
As a result of the above, net sales increased 2.8% year on year to ¥19,711 million. Operating
income decreased 1.2% to ¥1,344 million, ordinary income increased 7.0% to ¥1,739 million on
foreign exchange gains, and as a result, net income attributable to owners of the parent decreased
24.2% to ¥690 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 of gelatin for gummy candies remained steady, and product prices
were revised as appropriate, leading to an increase in net sales overall.
In Japan, demand for gummy candies was strong, and product prices were revised, leading toincreased net sales. Furthermore, demand in the food service industry recovered, leading to increased
sales of soups, seasonings, and small-portion products for professional-use. Additionally, net sales forconvenience store delicatessen items and chilled desserts increased.
Overseas, net sales declined due to weak demand for food applications in North America, in part
because of inflation, despite firm demand for gummy candies.
As a result, overall net sales in the food solutions category increased 4.6% year on year to ¥7,885
million.

2

Health Support
In the health support category, overall net sales rose amid the increase in sales of gelatin for capsulesand price revisions.
In Japan, net sales of collagen peptide for beauty applications were down year on year due tosluggish sales of collagen products by customers, but net sales of gelatin for capsules increased.
Overseas, demand for collagen peptides was weak in North America due to inflation, but sales ofgelatin for capsules were strong, resulting in increased sales. Asian markets were weak due to inflationand price competition, so sales of collagen peptide for beauty applications declined.
However, sales of gelatin for capsules remained steady in India, resulting in an increase in net sales.
As a result, overall sales in the health support category increased 3.7% year on year to ¥9,436
million.
Specialties
In the specialties category, net sales decreased by 6.0% year on year to ¥2,389 million amid decreased
sales of calcium phosphate for feed and fertilizer applications despite strong sales of gelatin forphotography applications.

(2) Description of Financial Position
1 Assets, Liabilities and Net Assets(Assets)
Total assets amounted to ¥43,450 million as of September 30, 2023, ¥1,835 million higher than at
March 31, 2023. This was mainly attributable to increases in inventories of ¥1,862 million andproperty, plant and equipment of ¥243 million despite a decrease of ¥238 million in notes andaccounts receivable—trade.
(Liabilities)
Total liabilities stood at ¥19,044 million as of September 30, 2023, ¥314 million lower than at March
31, 2023. This was mainly attributable to decreases in short-term loans payable of ¥723 million andother current liabilities of ¥909 million, compared to increases in notes and accounts payable—tradeof ¥732 million and long-term loans payable of ¥636 million (including current portion of long-termloans payable).
(Net assets)
Net assets amounted to ¥24,406 million as of September 30, 2023, ¥2,150 million higher than at
March 31, 2023. This was mainly attributable to increases in retained earnings of ¥527 million,
deferred gains on hedges of ¥152 million, foreign currency translation adjustments of ¥695 million,
and non-controlling interests of ¥672 million.
Furthermore, the equity ratio stood at 47.4%, compared with 45.9% at March 31, 2023.

3

2. Cash Flows
Cash and cash equivalents (“cash”) as of September 30, 2023 was ¥2,619 million, down ¥227 million
from March 31, 2023.
Cash flows for each activity for the six months ended September 30, 2023 and reasons are as
follows.
(Cash flows from operating activities)
Operating activities provided net cash of ¥1,850 million, compared to ¥490 million in the previous six
months ended September 30, 2022. The main components were income before provision for income
taxes of ¥1,716 million, depreciation and amortization of ¥843 million, decrease in notes and accounts
receivable—trade of ¥730, and increase in inventories of ¥1,291 million.
(Cash flows from investing activities)
Investing activities used net cash of ¥1,578 million, compared to ¥1,678 million in the previous six
months ended September 30, 2022. This was mainly attributable to ¥1,541 million in purchase ofproperty, plant and equipment.
(Cash flows from financing activities)
Financing activities used net cash of ¥656 million, compared to ¥211 million provided in the previous
six months ended September 30, 2022. The main components were proceeds from long-term loans
payable of ¥1,800 million, repayment of long-term loans payable of ¥1,177 million, net decrease in
short-term loans payable of ¥933 million, and cash dividends paid of ¥163 million.

(3) Description of Consolidated Business Forecasts and Other Forward-looking
Information
The forecast of consolidated financial results for the fiscal year ending March 31, 2024 remains
unchanged from that announced on May 12, 2023 in “Consolidated Financial Results for the Fiscal
Year Ended March 31, 2023.”
Actual business and other results may differ substantially from projections due to various factors.

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 and abroad,
Nitta Gelatin plans to examine the adoption of International Financial Reporting Standards (IFRS). In
doing so, the Group will take into account trends such as the adoption of IFRS by its peer companies.

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

Fiscal 2023
(As of March 31, 2023)
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

5

1H Fiscal 2024
(As of September 30, 2023)

2,856
8,741
6,910
1,487
4,584
801
(6)
25,376

2,659
8,503
8,450
1,722
4,672
904
(7)
26,905

4,812
2,740
3,566
11,119

4,852
2,841
3,669
11,362

196
308
504

187
311
498

2,730
2,011
(127)
4,614
16,23841,614

2,946
1,880
(142)
4,683
16,54543,450(Millions of yen)

Fiscal 2023
(As of March 31, 2023)
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

1H Fiscal 2024
(As of September 30, 2023)

2,818
3,905
2,084
241
256
3,404

3,550
3,182
2,246
264
204
2,495

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

12,711

11,944

4,118
1,586
942

4,592
1,607
899

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

6,646
19,3587,099
19,044

3,144
2,964
11,486
(160)

3,144
2,966
12,014(140)

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

17,434

17,985

842

951

(3)
841
(17)
1,662
3,159
22,256
41,614

148
1,536
(46)
2,589
3,831
24,40643,4506

(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Consolidated Statements of Income(First half consolidated accounting period)(Millions of yen)

Six Months Ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
19,17914,576

Net sales
Cost of sales

Six Months Ended
September 30, 2023
(From April 1, 2023
to September 30, 2023)
19,711
15,146Gross profit on sales

4,603

4,564

Selling, general and administrative expenses

3,243

3,220

Operating income

1,360

1,344

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

1
33
29
275
34

17
26
29
395
42

Total non-operating income

373

512

Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other

72
29
5

91
6
18

107

116

1,625

1,739

0
－

0
2

0

2

－
6
－

0
23
2

Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Gain on donation of noncurrent assets
Total extraordinary gains
Extraordinary losses
Loss on sale of noncurrent assets
Loss on retirement of noncurrent assets
Loss on tax purpose reduction entry of non-current
assetsTotal extraordinary losses

626

Income before provision for income taxes

1,619

1,716

Income taxes payable

424

568

Net income

1,195

1,147

Net income attributable to non-controlling interests

283

456

Net income attributable to owners of the parent

911

690

7

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

Six Months Ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
1,195

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

Six Months Ended
September 30, 2023
(From April 1, 2023
to September 30, 2023)
1,147

(31)

109

21
958
(87)
126

151
934
(31)
53

987
2,183

1,218
2,366

1,664
518

1,618
748

(3) Consolidated Statements of Cash Flows(Millions of yen)

Six Months Ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
Cash flows from operating activities
Income before provision for income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Equity in losses of affiliates
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Loss on tax purpose reduction entry of non-current assets
Gain on donation of noncurrent assets
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividends income received
Interest paid
Income taxes (paid) or refund
Net cash provided by operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from the sale of property, plant and equipment
Purchase of intangible assets
Proceeds from the sale of investment securities
Purchase of investment securities
Other
Net cash used in investing activities

9

Six Months Ended
September 30, 2023
(From April 1, 2023
to September 30, 2023)

1,619
703
28
(9)
(27)
0
(34)
72
(95)
29
(0)
6
－
－
－
79
(1,863)
490
(0)
(266)
731
35
(71)
(205)
490

1,716
843
30
0
(61)
(15)
(44)
91
(223)
6
0
23
2
(2)
(0)
730
(1,291)
368
314
(160)
2,327
39
(101)
(414)
1,850

(32)
16
(1,647)
0
(8)
－
(5)
(0)
(1,678)(38)
7(1,541)
1
(3)
0
(5)
(0)
(1,578)(Millions of yen)

Six Months Ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from sale-and-leaseback transactions
Repayments of lease obligations
Cash dividends paid
Cash dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

10

(226)
1,716
(1,027)
21
(105)
(126)
(39)
211
79
(897)
3,030
2,133

Six Months Ended
September 30, 2023
(From April 1, 2023
to September 30, 2023)
(933)
1,800
(1,177)
20
(126)
(163)
(75)
(656)
156
(227)
2,846
2,619

(4) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
The Company disposed of 31,200 shares of treasury stock effective August 4, 2023 as restricted
share-based remuneration based on a resolution at the Board of Directors meeting held on July 20,
2023.
As a result, treasury stock decreased by ¥20 million, and capital surplus increased by ¥2 million in
the first half of the year ending March 31, 2024.

(Segment Information)
Segment Information
Ⅰ Six Months Ended September 30, 2022 (From April 1, 2022 to September 30, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Ⅱ Six Months Ended September 30, 2023 (From April 1, 2023 to September 30, 2023)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.

11