May 13, 2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(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:
Norifumi Nagaoka, Director and Executive Officer
General Manager of General Management Division
Tel: +81-72-949-5381
Scheduled date of General Shareholders’ Meeting: June 28, 2022
Scheduled date to file Securities Report:
June 28, 2022
Scheduled date to commence dividend payments: June 29, 2022
Supplementary explanatory materials prepared:
Yes
Explanatory meeting:
No(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022
(April 1, 2021 to March 31, 2022)(1) Consolidated operating results
Net sales
Fiscal year ended
March 31, 2022
March 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

%

1,734
1,364

27.1
(24.1)

726
742

(2.1)
—

%

31,783
4.2
1,560
15.0
30,514—1,356(19.8)
Note: Comprehensive income
For the fiscal year ended March 31, 2022 ¥1,942 million (4.8%)
For the fiscal year ended March 31, 2021 ¥1,853 million (—%)

Earnings per
share
Fiscal year ended
March 31, 2022
March 31, 2021

Yen

Diluted earnings
per share
Yen

Return on equity(ROE)

Ordinary income/ Total assets%%

Operatingincome / Net
sales
%

40.16
—
4.2
4.8
4.9
40.99
—
4.6
4.0
4.4
Reference: Equity in earnings of affiliates
For the fiscal year ended March 31, 2022: ¥-121 million
For the fiscal year ended March 31, 2021: ¥9 million
Notes: 1. Diluted earnings per share is not disclosed due to the absence of latent shares with dilution effect.
2. The Company has applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29; March 31,2020) from the beginning of the fiscal year ended March 31, 2022. Numerical indicators for the fiscal year ended
March 31, 2021 have been calculated after retroactively applying this accounting standard. For net sales, theyear-on-year rate of change has been omitted.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

37,41034,915

20,562
18,87348.3
48.1

998.76929.18Net cash provided byoperating activities

Net cash used ininvesting activities

Net cash used infinancing activities

Cash and cash
equivalents at endof yearMillions of yen

Millions of yen

Millions of yen

1,044
3,509

(1,325)
(897)

(762)
(31)

As of
March 31, 2022
March 31, 2021

Net assets per share

Equity ratio%

Yen

Reference: Equity
As of March 31, 2022: ¥18,082 million
As of March 31, 2021: ¥16,794 million(3) Consolidated cash flows

Fiscal year ended
March 31, 2022
March 31, 2021

Millions of yen

3,030
3,998

2. Cash dividends
Cash dividends per shareFirst
quarter

Secondquarter

Yen

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecasts)

Third
quarter

Yen

Fiscalyear-end

Yen

Annual

Yen

Yen

Total
amount ofdividends(consolidated)

Dividends
on netassetsMillions of yen%%

Payoutratio(consolidated)

―

6.00

―

6.00

12.00

216

29.3

1.3

―

7.00

―

7.00

14.00

253

34.9

1.5

―

7.00

―

7.00

14.00

28.2

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

Six months ending
September 30, 2022
Fiscal year ending
March 31, 2023

Operating income% Millions of yen

Ordinary income% Millions of yen

Net income
Earnings per
attributable toshareowners of the parent%

Millions of yen%

Yen

17,500

17.7

700

18.0

700

0.5

400

6.9

22.09

36,000

13.3

1,600

2.5

1,500

(13.5)

900

23.9

49.71

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) 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: Nonec. Changes in accounting estimates: None

d. Restatement of revisions: None
Note: For details, please refer to “3. Consolidated Financial Statements and Key Notes, (5) Notes toConsolidated Financial Statements (Changes in Accounting Policies)” on page 16 of the
Attachment to this report.
(3) Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2022:
18,373,974 shares
As of March 31, 2021:
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of March 31, 2022:
268,739 shares
As of March 31, 2021:
299,467 sharesc. Average number of shares
For the fiscal year ended March 31, 2022: 18,095,797 shares
For the fiscal year ended March 31, 2021: 18,107,546 shares(Reference) Summary of non-consolidated operating results
1. Non-consolidated financial results for the fiscal year ended March 31, 2022
(April 1, 2021 to March 31, 2022)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

20,105(3.2)

163(34.3)

730

14.8

453

19.5

20,759—249(70.7)

636(45.6)

379

506.5

Earnings per share

Diluted earnings per share

Fiscal year ended
March 31, 2022

25.06

—

March 31, 2021

20.96

—

Yen

Yen

Notes: 1. Diluted earnings per share is not disclosed due to the absence of latent shares with dilution effect.
2. The Company has applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29; March 31,2020) from the beginning of the fiscal year ended March 31, 2022. Numerical indicators for the fiscal year
ended March 31, 2021 have been calculated after retroactively applying this accounting standard. For net sales,
the year-on-year rate of change has been omitted.

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

As ofMarch 31, 2022

Millions of yen

Millions of yen

26,037

13,67152.5

755.11March 31, 2021

24,981

13,27853.2

734.63

Reference: Equity
As of March 31, 2022: ¥13,671 million
As of March 31, 2021: ¥13,278 million%

Yen* This financial report is not subject to audits 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 “(4) Outlook” under “1. Overview ofBusiness Results” on page 5 of the Attachment to this report.
(Method for obtaining supplementary financial results explanatory materials)
Financial results explanatory materials are scheduled to be made available on the Company’s website on
June 8, 2022.

Contents
1. Overview of Business Results ···················································································· 2(1)Operating Results for the fiscal year ended March 31, 2022 ··········································· 2(2)Financial Position ···························································································· 4(3)Cash Flows ···································································································· 4(4)Outlook ········································································································ 5

2. Basic Approach to Selection of Accounting Standard ······················································ 7
3. Consolidated Financial Statements and Key Notes ··························································· 8(1)Consolidated Balance Sheets ················································································· 8(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income··· 10
Consolidated Statements of Income ······································································· 10
Consolidated Statements of Comprehensive Income ····················································11(3)Consolidated Statements of Changes in Net Assets ····················································· 12(4)Consolidated Statements of Cash Flows ································································ 14(5)Notes to Consolidated Financial Statements ····························································· 16(Note Concerning Going Concern Assumption) ························································ 16(Note Concerning Significant Changes in Shareholders’ Equity) ····································· 16(Changes in Accounting Policies) ········································································· 16(Additional Information) ···················································································· 17(Revenue Recognition)······················································································ 17(Segment Information) ···················································································· 18(Per Share Information) ··················································································· 20(Subsequent Events) ························································································· 20

4. Other·················································································································· 21-1-1. Overview of Business Results(1) Operating Results for the fiscal year ended March 31, 2022
In the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022), COVID-19 vaccines
were rolled out around the world, but with the emergence of variants the global economy
continued to face the pandemic with no end in sight. There was also growing uncertainty toward
the future following the impacts of Russia’s invasion of Ukraine and economic sanctions imposedby Western nations. The environment surrounding the Group was challenging due to disruptionsin the supply chain worldwide and the soaring prices of raw materials and crude oil, coupled withthe weakening of the Japanese yen.
Amid this environment, the Group launched a new three-year medium-term management planin 2021. The management policies for the Group set out in this medium-term management planare presented below.
1. Strategic allocation of management resources to key markets to create a high-profit
enterprise
2. Strengthening of the organizational foundation to face challenges positively
3. Strengthening ties with stakeholders to be a valuable company
Under this management policy, we worked to expand sales of high value-added products inmainstay markets in each domain including the core categories of food solutions, health support,
and biomedical, and made efforts to increase our visibility by stepping up advertising targeting
general consumers, disseminating information via social media, and actively responding to media
requests. In addition, the Company selected the Prime Market following the Tokyo Stock
Exchange’s review of its market segments.
As a result, net sales increased 4.2% year on year to ¥31,783 million underpinned by sales
growth of foods solutions and health support, which offset the decline in sales associated with thetransfer of the adhesives business in the previous fiscal year. Operating income increased 15.0%
to ¥1,560 million mainly driven by higher net sales despite increased transportation costs, etc.,
ordinary income increased 27.1% to ¥1,734 million attributed to the booking of foreign exchange
gains, etc., and net income attributable to owners of the parent decreased 2.1% to ¥726 million
because of income taxes associated with the increased profits of overseas consolidated
subsidiaries and the booking of net income attributable to non-controlling interests.
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 were strong in Japan and rose in North America, resulting in-2-

an increase in overall net sales for the segment.
In Japan, net sales for products for use in gummy candies increased, driven by strong sales of
new products by customers. In addition, net sales rose on increased sales for frozen food anddessert jelly applications. Industrial-use products saw increased net sales due to strong sales of
products for use in direct marketing sales, despite sluggish sales of products for the food-service
industry. However, net sales of gelatin for use at home in confectioneries and cooking decreased
as demand for making confectioneries at home ran its course.
Overseas, net sales increased on robust demand for food applications in North America.
As a result, overall net sales in the food solutions category increased 7.3% year on year to¥12,502 million.
Health Support
In the health support category, sales from exports of gelatin for capsules declined due to ongoing
disruptions in maritime container transportation, but sales of collagen peptide for health andbeauty applications increased overseas and in Japan, while sales of biomedical products also grew,
resulting in an increase in overall net sales for the segment.
In Japan, there was a recovery in in-store sales while sales of new collagen products forcustomers were strong, helping to boost net sales of collagen peptide for health and beauty
applications and gelatin for capsules. Net sales of medical-use collagen and gelatin also increasedon growing sales of new products for medical devices.
Overseas, net sales increased on firm demand for collagen peptide products in North America
and strong sales of collagen peptide for health and beauty applications that advertise functionality
in Asia. Meanwhile, net sales of gelatin for capsules declined amid ongoing disruptions inmaritime container transportation, despite strong demand from rising health consciousness andinfection prevention needs during the COVID-19 pandemic. In India, sales for capsules forpharmaceutical and health food applications were firm and sales of collagen peptide expanded,resulting in an increase in net sales.
As a result, overall net sales in the health support category increased 10.0% year on year to¥15,480 million.
Specialties
In the specialties category, overall net sales decreased 20.7% year on year to ¥3,800 million. Thiswas due to the decrease in net sales from the completion of the transfer of the adhesives businessin the previous fiscal year, despite an increase in net sales of gelatin for photography applications
amid demand for instant-use cameras following the recovery in economic activities after
COVID-19.

-3-

(2) Financial Position(Assets)
Total assets amounted to ¥37,410 million at March 31, 2022, ¥2,495 million higher than at March
31, 2021. This was mainly attributable to a decrease in cash and deposits of ¥978 million anddeferred tax assets of ¥249 million, compared to an increase in trade notes and accounts
receivable of ¥445 million, inventories of ¥1,603 million, and construction in process of ¥1,430
million.
(Liabilities)
Total liabilities amounted to ¥16,848 million at March 31, 2022, ¥807 million higher than at
March 31, 2021. This was mainly attributable to decreases in long-term loans payable of ¥522
million (including loans repayable within one year) and in notes and accounts payable–trade of¥208 million, compared to an increase in short-term loans payable of ¥307 million and inaccounts payable-other of ¥1,109 million.
(Net assets)
Net assets amounted to ¥20,562 million at March 31, 2022, ¥1,688 million higher than at March
31, 2021. This was mainly attributable to increases in retained earnings of ¥491 million, foreign
currency translation adjustments of ¥622 million, and non-controlling interests of ¥399 million.
As a result, the equity ratio stood at 48.3% at March 31, 2022 compared with 48.1% at March
31, 2021.

(3) Cash Flows
Cash and cash equivalents (“cash”) as of March 31, 2022 was ¥3,030 million, down ¥967 million
from March 31, 2021.
Cash flows for each activity and reasons are as follows.
(Cash flows from operating activities)
Operating activities provided net cash of ¥1,044 million. The main components were income
before provision for income taxes of ¥1,663 million, depreciation and amortization of ¥1,370
million, increase in inventories of ¥1,199 million, and decrease in notes and accounts payable–
trade of ¥490 million.
(Cash flows from investing activities)
Investing activities used net cash of ¥1,325 million. This was mainly attributable to ¥1,218
million in purchase of property, plant and equipment.

-4-

(Cash flows from financing activities)
Financing activities used net cash of ¥762 million. The main components were proceeds fromlong-term loans payable of ¥1,651 million, repayment of long-term loans payable of ¥2,198
million, and cash dividends paid of ¥235 million.
Trends in the Group’s cash flow indicators are presented below.
(Reference)
Trends in cash flow indicators:
Fiscal year
ended March
31, 2018

Fiscal year
ended March
31, 2019

Fiscal year
ended March
31, 2020

Fiscal year
ended March
31, 2021

Fiscal year
ended March
31, 2022

Equity ratio (%)

40.7

42.0

46.7

48.1

48.3

Market value equity ratio (%)

39.3

33.4

32.4

34.7

32.3

Interest-bearing debt to cash
flow ratio (Years)

7.2

4.3

4.1

2.4

8.0

Interest coverage ratio (Times)

6.0

9.2

10.4

31.7

10.7

Equity ratio: equity / total assets
Market value equity ratio: market capitalization / total assets
Interest-bearing debt to cash flow ratio: interest-bearing debt / cash flow
Interest coverage ratio: cash flow / paid interest
Notes: 1. All indicators are calculated using consolidated financial figures.
2. Market capitalization is calculated based on the number of issued shares, excluding treasury stock, as ofthe end of the fiscal year.
3. The figure used for cash flow is “net cash provided by operating activities” on the consolidated
statements of cash flows.
4. Interest-bearing debt includes all liabilities recorded on the consolidated balance sheets on whichinterest was paid. In addition, for interest payments, the interest payment amount in the consolidated
statements of cash flows is used.

(4) Outlook(Outlook for Business Performance in the Fiscal Year Ending March 31, 2023)
The next fiscal year will be the second year of the medium-term management plan (fiscal 2022 tofiscal 2024). We will continue to work as one company to further enhance corporate value,
including strengthening profitability and ensuring growth, raising our visibility through public
relations and IR activities, and further promoting sustainability activities.
As for the global economy, the impacts of the COVID-19 pandemic are expected to become
protracted as restrictions on some economic activities will continue. In addition, the Russia's
invasion of Ukraine and economic sanctions imposed by Western countries are expected to have amajor impact on the global economy, including causing higher energy and food prices.
Despite this challenging environment, in the food solutions category, we will expand sales bybuilding new sales channels and developing new products for industrial use aimed at protein-5-supplement market as well as hotels and restaurants. In the health support category, in Japan wewill work to expand sales in the sports nutrition market and to increase sales of collagen products
for general consumers, in addition to health and beauty applications. Overseas, we will strive toexpand sales for health and beauty applications in North America and Asia. As for the biomedical
category, in April 2022, we established the Biomaterial Structure Design Division within theInstitute for the Promotion of Business-Regional Collaboration of Hokkaido University with thegoal of researching and developing the world's first collagen artificial tendon for ligament
reconstruction. We will continue to work on the development of innovative technologies inhealthcare. In addition, with Mirai Kan, which will be completed in autumn 2022, we will further
strengthen our production capacity and quality of medical-use collagen and gelatin and strive toexpand their sales.
To extend healthy life expectancy and resolve social issues, the Group will continue to pursue
the possibility of the unique material of collagen.
With regard to capital investment, in Japan the Group will look to build up the production and
R&D infrastructure for biomedical products with the construction of Mirai Kan, as well as
introduce facilities that innovate and streamline production. Overseas, the Group will execute
investments to ensure stable production and address environmental conservation.
The forecast for consolidated financial results for the next fiscal year calls for net sales of¥36,000 million, operating income of ¥1,600 million, ordinary income of ¥1,500 million, and net
income attributable to owners of parent of ¥900 million.
(Risks related to COVID-19)
Although vaccination has progressed around the world, there is no end in sight to the COVID-19
pandemic, and it continues to have a major impact on people's health, daily life, and economic
activities. Following the policies of the governments of each country, the Group continues its
business activities while taking various infection prevention measures. However, COVID-19
could still impact the Group’s business performance and financial position through contingencies
such as the stoppage of production due to the infection of employees, port disruptions due tolockdowns near our overseas business bases, and a slowdown in logistics due to delays inmaritime transportation.

-6-

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 of
IFRS by its peer companies.

-7-3. Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Millions of yen)

Fiscal 2021
(As of March 31, 2021)
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in process
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-8-

Fiscal 2022
(As of March 31, 2022)

4,024
6,944
5,069
1,201
2,582
459
(15)
20,266

3,046
7,389
5,955
1,396
3,104
588
(16)
21,4659,319(6,008)3,311
14,069(11,398)
2,670
2,129
961
(414)
546
170
1,476
(1,196)
280
9,109

9,743
(6,334)
3,409
15,209(12,735)
2,474
2,151
977
(463)
514
1,600
1,546
(1,280)265
10,416

257
244
502

232
275
507

3,205
1
429
968
539
(106)
5,036
14,64834,915

3,363
2
179
1,024
569
(117)
5,021
15,94537,410(Millions of yen)

Fiscal 2021
(As of March 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
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
Valuation difference on other available-for-salesecurities gains on hedges
DeferredForeign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-9-

Fiscal 2022
(As of March 31, 2022)

2,953
1,964
2,080
191
1,538
194
209
498
9,630

2,745
2,271
1,909
191
2,648
171
224
559
10,721

3,925
413
450
1,598
22

3,573
379
595
1,560
17

6,410
16,041

6,126
16,848

3,144
2,966
9,690
(200)
15,601

3,144
2,965
10,181(179)
16,112

1,125
3
(82)
145
1,192
2,079
18,87334,915

1,231
46
540
151
1,969
2,479
20,56237,410(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income(Consolidated Statements of Income)(Millions of yen)

Fiscal 2021
(From April 1, 2020
to March 31, 2021)
30,51424,248Net sales
Cost of sales

Fiscal 2022
(From April 1, 2021
to March 31, 2022)
31,783
24,779Gross profit on sales

6,266

7,003

Selling, general and administrative expenses

4,910

5,443

Operating income

1,356

1,560

Non-operating income
Interest income
Dividend income
Rental income
Outsourcing service income
Foreign exchange gains
Equity in earnings of affiliates
Other

5
41
42
44
—
9
27

2
46
57
26
215
—
53

Total non-operating income

170

402

Non-operating expenses
Interest expenses
Foreign exchange losses
Equity in losses of affiliates
Commission paid
Other

107
43
—
9
2

97
—
121
9
1

Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Subsidy income
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 assets
Impairment loss
Total extraordinary losses
Income before provision for income taxes

162

228

1,364

1,734

0
13

0
—

13

0

6
7
13
44

0
70
—
—

72

71

1,306

1,663

Income taxes
Income taxes-deferred

178
194

362
267

Total income taxes

373

630

Net income

932

1,033

Net income attributable to non-controlling interests

190

306

Net income attributable to owners of the parent

742

726

- 10 -

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Fiscal 2021
(From April 1, 2020
to March 31, 2021)
932

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
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests- 11 -

Fiscal 2022
(From April 1, 2021
to March 31, 2022)
1,033

206

106

98
333
271

33
659
(7)

10

116

920
1,853

908
1,942

1,545
307

1,503
438

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2021 (From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

3,144

2,966

Balance at the beginningof fiscal year
Changes during the fiscal
year
Dividends from surplus
Net income attributableto owners of the parent
Purchase of treasurystock
Net changes of items
other than shareholders’equityTotal changes during
fiscal year
Balance at the end of
fiscal year

Retained earnings

Treasury stock

9,166

Total shareholders’equity(0)15,278

(218)

(218)

742

742
(199)

(199)
—

—

—

523

(199)

323

3,144

2,966

9,690

(200)

15,601

Accumulated other comprehensive income
Valuationdifference on
otheravailable-for-sale
securities

Balance at the beginningof fiscal year
Changes during the fiscal
year
Dividends from surplus
Net income attributableto owners of the parent
Purchase of treasurystock
Net changes of items
other than shareholders’equityTotal changes during
fiscal year
Balance at the end of
fiscal year

920

Deferred
gains onhedges(47)

Total
Foreign
Remeasurements accumulated Non-controlli
currency
ng interestsof defined benefit
othertranslationplanscomprehensive
adjustments
income

(346)

(137)

389

1,793

Total net
assets17,461

—

(218)

—

742

—

(199)

205

51

264

282

803

285

1,089

205

51

264

282

803

285

1,412

1,125

3

(82)

145

1,192

2,079

18,873- 12 -

Fiscal 2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)

Shareholders’ equity
Capital stock

Capital surplus

3,144

2,966

Balance at the beginningof fiscal year
Changes during the fiscal
year
Dividends from surplus
Net income attributableto owners of the parent
Purchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders’equityTotal changes during
fiscal year
Balance at the end of
fiscal year

Retained earnings

Treasury stock

9,690

Total shareholders’equity(200)

15,601

(235)

(235)

726

726

(0)

(0)

(0)

20

19
—

—

(0)

491

20

511

3,144

2,965

10,181(179)

16,112

Accumulated other comprehensive income
Valuation
Total
difference on
Foreign
DeferredRemeasurements accumulated Non-controlli
othercurrency
ng interests
gains onof defined benefit
otheravailable-fortranslation
hedgesplans
comprehensive
sale
adjustments
incomesecurities

Balance at the beginningof fiscal year
Changes during the fiscal
year
Dividends from surplus
Net income attributableto owners of the parent
Purchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders’equityTotal changes during
fiscal year
Balance at the end of
fiscal year

1,125

3

(82)

145

1,192

2,079

Total net
assets

18,873

—

(235)

—

726

—

(0)

—

19

105

43

622

6

777

399

1,177

105

43

622

6

777

399

1,688

1,231

46

540

151

1,969

2,479

20,562- 13 -

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

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
Impairment loss
Loss (gain) on sales of investment securities
Loss on tax purpose reduction entry of non-current assets
Subsidy income
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
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from the sale of investment securities
Purchase of investment securities
Proceeds from business divestiture
Payments for retirement of property, plant and equipment
Subsidies received
Other
Net cash used in investing activities- 14 -

Fiscal 2021
(From April 1, 2020
to March 31, 2021)

Fiscal 2022
(From April 1, 2021
to March 31, 2022)

1,306
1,348
45
(0)
(8)
(0)
(47)
107
(14)
(9)
6
7
44
(5)
13
(13)
893
575
(738)
(150)
250
3,610
47
(110)
(37)
3,509

1,663
1,370
48
(0)
5
(103)
(49)
97
(75)
121
(0)
70
—
—
—
—
(90)
(1,199)
(490)
(31)
59
1,395
49
(97)
(302)
1,044

(23)
30
2
(1,220)
(54)
14
(8)
348
—
13
0
(897)

(14)
26
2
(1,218)
(64)
—
(8)
—
(47)
—
(1)
(1,325)

(Millions of yen)

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
Purchase of treasury stock
Cash dividends paid to non-controlling interests
Net cash used in by 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 the fiscal year

- 15 -

Fiscal 2021
(From April 1, 2020
to March 31, 2021)

Fiscal 2022
(From April 1, 2021
to March 31, 2022)

17
3,012
(2,591)
186
(216)
(218)
(199)
(21)
(31)
35
2,616
1,381
3,998

114
1,651
(2,198)
150
(206)
(235)
(0)
(38)
(762)
75
(967)
3,998
3,030

(5) Notes to Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
The Company disposed of 30,800 shares of treasury stock effective July 30, 2021 as restricted
share-based remuneration based on a resolution at the Board of Directors meeting held on July 15,2021. As a result of this disposal, capital surplus and treasury stock decreased by ¥0 million and¥20 million, respectively, and capital surplus totaled ¥2,965 million and treasury stock ¥179
million as of the end of the fiscal year ended March 31, 2022.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company applied the Accounting Standard for Revenue Recognition (ASBJ Statement No.
29, March 31, 2020) from the beginning of the fiscal year ended March 31, 2022. The Company
now recognizes revenue in the amount expected to be received in exchange for goods andservices at the point in time when the control of the promised goods and services are transferredto the customer.
As a result, sales commissions and sales promotion costs conventionally recorded in selling,
general and administrative expenses have been deducted from net sales.
This change in accounting policy is applied retroactively, in principle, and the consolidated
financial statements reflect this change for the previous fiscal year. However, the following
methods are applied as stipulated in Paragraph 85 of the Accounting Standard for Revenue
Recognition.
I. Information for comparison within contracts that recognized the amount of nearly all
revenue following the previous handling until the start of the previous fiscal year will not
be revised retroactively.
II. Information for comparison regarding the amount of variable consideration included incontracts that recognized the amount of nearly all revenue following the previous
handling until the start of the current fiscal year will be revised retroactively using theamount at the time the uncertainty concerning the amount of the variable consideration iseliminated.
III. Consolidated financial statements for the previous fiscal year will not be revised
retroactively regarding contracts that were started and ended within the previous fiscal
year.
IV. Information for comparison will be revised retroactively for contractual changes madeprior to the start of the previous fiscal year by using accounting treatment based on thecontractual conditions after reflecting all contractual changes.
- 16 -

As a result, compared to prior to retroactive application, net sales decreased by ¥36 million in
the previous fiscal year and selling, general and administrative expenses decreased by ¥36 million,
but operating income, ordinary income, and income before provision for income taxes were notaffected. In accordance with the transitional treatment set forth in Paragraph 89-3 of the
Accounting Standard for Revenue Recognition, the Company does not include any notes to“Revenue Recognition” for the previous fiscal year.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company applied the Accounting Standard for Fair Value Measurement (ASBJ Statement
No. 30, July 4, 2019; below, “Accounting Standard for Fair Value Measurement”) from the startof the fiscal year ended March 31, 2022. Following the transitional handling stipulated in
Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the
Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), theCompany will apply the new accounting policy set forth in the Accounting Standard for Fair
Value Measurement for all future years. There are no impacts on the Company’s consolidated
financial statements as a result of this change.
(Additional Information)
In regard to the impacts of the COVID-19 pandemic, although it is difficult for the Group toaccurately predict when the pandemic will end, the Group makes accounting estimates such as
evaluation of the recoverability of deferred tax assets, assuming that the impacts will continue fora certain period of time in or after the next fiscal year but conditions will recover moderately
thereafter.
(Revenue Recognition)
Information that breaks down revenue generated from customer contracts
Net sales broken down by sales category are as follows.
(Millions of yen)
Fiscal 2022
(From April 1, 2021
to March 31, 2022)
Food Solutions

12,502

Health Support

15,480Specialties

3,800

Annual31,783- 17 -

(Segment Information)
Segment Information
Fiscal 2021 (From April 1, 2020 to March 31, 2021)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Fiscal 2022 (From April 1, 2021 to March 31, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Related information
Fiscal 2021 (From April 1, 2020 to March 31, 2021)
1. Information by products and services
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
2. Information by countries and regions(1) Net sales(Millions of yen)

Japan

India

16,565

Asia

2,621

U.S.

3,219

Canada

6,369

Other

1,416

Total

322

30,514

Note: Sales are classified into countries or regions based on customers’ locations.

(2) Property, plant and equipment(Millions of yen)

Japan
3,610

India

Asia

2,950

U.S.
24

Canada
1,855

Total
667

3. Information by main customer
The Company has omitted disclosure because no sales to any external customer
exceeded 10% of the total net sales on the consolidated statements of income.
Fiscal 2022 (From April 1, 2021 to March 31, 2022)
1. Information by products and services
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.

- 18 -

9,109

2. Information by countries and regions(1) Net sales(Millions of yen)

Japan

India

15,597

Asia

3,779

U.S.

3,108

Canada

7,099

Other

1,851

Total

346

31,783

Note: Sales are classified into countries or regions based on customers’ locations.

(2) Property, plant and equipment(Millions of yen)

Japan
4,785

India

Asia

3,098

U.S.
33

Canada
1,823

Total
674

3. Information by main customer
The Company has omitted disclosure because no sales to any external customer
exceeded 10% of the total net sales on the consolidated statements of income.
Information on impairment loss on noncurrent assets by reporting segments
Fiscal 2021 (From April 1, 2020 to March 31, 2021)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Fiscal 2022 (From April 1, 2021 to March 31, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Information on amortization of goodwill and unamortized amounts by reporting
segments
Fiscal 2021 (From April 1, 2020 to March 31, 2021)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Fiscal 2022 (From April 1, 2021 to March 31, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Information on gain on negative goodwill by reporting segments
Fiscal 2021 (From April 1, 2020 to March 31, 2021)
None- 19 -

10,416

Fiscal 2022 (From April 1, 2021 to March 31, 2022)
None(Per Share Information)(Yen)
Fiscal 2021
(From April 1, 2020
to March 31, 2021)

Fiscal 2022
(From April 1, 2021
to March 31, 2022)

Net assets per share¥929.18¥998.76

Earnings per share¥40.99¥40.16

Notes: 1. Diluted earnings per share is not disclosed due to the absence of latent shares with dilution effect.
2. Basis for calculating earnings per share data is shown below.

Fiscal 2021
(From April 1, 2020
to March 31, 2021)

Fiscal 2022
(From April 1, 2021
to March 31, 2022)

Earnings per share
Net income attributable to owners of the parent(Millions of yen)Amounts not attributable to common shareholders(Millions of yen)
Net income attributable to owners of the parent
related to common stock (Millions of yen)
Average number of common shares during theperiod (shares)(Subsequent Events)
None- 20 -

742

726

—

—

742

726

18,107,546

18,095,797

4. Other(1) Changes of directors and officers(a) Change of Representative Director
None(b) Changes of other officers• Candidate for Director to be newly elected
Hiromasa Suzuki, Outside Director• Director scheduled to retire
Hisayuki Suekawa, Outside Director• Candidates for Audit & Supervisory Board Member to be newly elected
Kazuya Inoue, Standing Audit & Supervisory Board Member (currently, Chief
Manager of Finance Dept., General Management Div.)
Jyunko Taki, Outside Audit & Supervisory Board Member• Audit & Supervisory Board Members scheduled to retire
Masaki Kataoka, Standing Audit & Supervisory Board Member
Tamon Tsuda, Outside Audit & Supervisory Board Member(c) Scheduled date of election and retirement
June 28, 2022
(2) OtherNone- 21 -