August 9, 2024

Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Japanese Accounting Standards)
Name of the Listed Company:
Listing:
Stock code:
URL:
Representative:
Contact Person:

Nitta Gelatin Inc.
Standard Market of Tokyo Stock Exchange4977
http://www.nitta-gelatin.co.jp/
Hidenori Takemiya, Representative Director and President
Akira Ando, Director and Executive Officer;
General Manager of General Management Division
Tel: +81-72-949-5381

Scheduled date to commence dividend payments: —Supplementary explanatory materials prepared: Yes
Explanatory meeting: No(Millions of yen with fractional amounts discarded, unless otherwise noted.)
1. Consolidated financial results for three months ended June 30, 2024 (April 1 to June 30, 2024)(1) Consolidated operating results
Net sales
Three months ended
June 30, 2024
June 30, 2023

Operating income

Net income attributableto owners of the parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

10,377
9,403

10.4
1.7

1,033
489

111.0
(28.1)

1,380
741

86.0
(14.4)

616
248

148.1
(54.5)

Note: Comprehensive income
Three months ended June 30, 2024: ¥1,403 million (–7.1%)
Three months ended June 30, 2023: ¥1,511 million (7.5%)

Diluted earnings per
share

Earnings per share
Three months ended
June 30, 2024
June 30, 2023

Yen

Yen

33.96
13.71

－
－

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

(2) Consolidated financial position
Total assets
As ofJune 30, 2024
March 31, 2024
Reference: Equity
As of June 30, 2024:
As of March 31, 2024:

Net assets

Equity ratio

Millions of yen

Millions of yen%

41,21639,962

23,522
22,26946.1
45.5¥18,987 million¥18,188 million

2. Cash dividends
Cash dividends per shareFirst quarter
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025

Second quarter

Third quarter

Fiscal year-end

Annual

Yen

Yen

Yen

Yen

Yen

－

8.00

－

8.00

16.00

－

Cash dividends per shareFirst quarter

Second quarter

Fiscal year ending
March 31, 2025 (Forecasts)

Third quarter

9.00

Fiscal year-end

Annual

9.00

－

18.00

Note: Changes to most recent dividend forecasts: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)(Percentages indicate year-on-year changes.)
Net income
Net sales
Operating income
Ordinary income attributable to owners Earnings per shareof the parent
Six months ending
September 30, 2024
Fiscal year ending
March 31, 2025

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

19,500

(1.1)

1,500

11.6

1,500

(13.8)

800

15.8

44.05

39,000

(3.5)

3,000

63.3

3,000

25.9

1,600

－

88.11

Note: Changes to most recent dividend forecasts: None

Notes:(1) Changes to scope of consolidation during the period under review: 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(i) Changes in accounting policies due to revisions to accounting standards and other guidelines: Yes(ii) Changes in accounting policies due to reasons other than (i) above: None(iii) Changes in accounting estimates: None(iv) Restatement of revisions: None
Note: For details, please refer to “(3) Notes to Quarterly Consolidated Financial Statements (Note Concerning Changes in
Accounting Policies)” under “2. Quarterly Consolidated Financial Statements and Key Notes” on page 8 of the Attachment
to this report.
(4) Number of common shares issued(i) Total number of issued shares at the end of
the period (including treasury stock)

As of June 30, 2024:(ii) Number of shares of treasury stock at theend of the period

As of June 30, 2024:(iii) Average number of shares

For the three months
ended June 30, 2024:

18,373,974 shares As of March 31, 2024: 18,373,974 shares
213,988 shares As of March 31, 2024:

213,988 shares

For the three months
ended June 30, 2023:

18,133,035 shares

18,159,986 shares

Notes: 1. Review of the attached quarterly consolidated financial statements by Certified Public Accountants or the independent auditor:
None
2. 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. These statements do not guarantee that theCompany will achieve its earnings forecasts. In addition, actual business and other results may differ substantially due tovarious factors. For details on the conditions assumed and the cautionary notes and items in the financial forecasts, please referto “(3) Description of Consolidated Business Forecasts and Other Forward-looking Information” in “1. Overview of BusinessResults” on page 3 of the Attachment to this report.

Contents
1. Overview of Business Results .................................................................................................................................................... 2(1) Overview of operating results ................................................................................................................................................ 2(2) Overview of financial position ............................................................................................................................................... 3(3) Description of Consolidated Business Forecasts and Other Forward-looking Information ................................................... 3
2. Quarterly Consolidated Financial Statements and Key Notes................................................................................................ 4(1) Consolidated Balance Sheets ................................................................................................................................................. 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ............................................ 6
Consolidated Statements of Income(First quarter consolidated accounting period) ............................................................................................................ 6
Consolidated Statements of Comprehensive Income(First quarter consolidated accounting period) ............................................................................................................ 7(3) Notes to Quarterly Consolidated Financial Statements ......................................................................................................... 8(Note Concerning Going Concern Assumption) .................................................................................................................. 8(Note Concerning Significant Changes in Shareholders’ Equity) ........................................................................................ 8(Note Concerning Changes in Accounting Policies) ............................................................................................................ 8(Note Concerning Quarterly Consolidated Statement of Cash Flows)................................................................................. 8(Note on Segment Information) ........................................................................................................................................... 8(Subsequent Events) ............................................................................................................................................................ 9-1-

1. Overview of Business Results(1) Overview of operating results
In the three months ended June 30, 2024, Japan's economy continued its gradual recovery, driven by growing inbounddemand and strong corporate performance. However, consumer spending faltered as rising prices, fueled by surging energy
and raw material costs amid a weak yen, led to a decline in real wages. Overseas, while economic growth in Europe and theUnited States showed signs of underlying strength, the outlook for the environment surrounding the Group remains
uncertain. This uncertainty is driven by several factors, including the prolonged conflict in Ukraine, the impact of various
government financial policies, the slowdown in China’s economy, exchange rate fluctuations, and logistical delays.
In this context, the Group has outlined its long-term vision of “Helping to improve people's quality of life with collagen.”To achieve sustainable growth and transform into a highly profitable company, we have launched a new Medium-Term
Management Plan (fiscal 2025 to fiscal 2027) from fiscal 2025. The planning period is designated as a time forfundamentally strengthening profitability and cash-generating capabilities. The basic policy of the Medium-Term
Management Plan is as follows:
1. Fundamentally strengthen profitability by enhancing cost competitiveness through production system reorganizationand turning the biomedical business profitable
2. Strengthen cash-generating capabilities through more efficient use of working capital, etc.
3. Strengthen the management base to stabilize earnings by enhancing global governance and increasing the value ofhuman capital
Based on these policies, we focused on improving the profitability and efficiency of our business across all productcategories, including gelatin, collagen peptides, food ingredients, and biomedical products. At the same time, we enhanced
global governance and worked to increase the value of our human capital.
As a result of the above, net sales increased 10.4% year on year to ¥10,377 million. Operating income increased 111.0%
year on year to ¥1,033 million, driven by strong domestic sales and improved profitability following the suspension of
production at Nitta Gelatin USA, Inc. Ordinary income increased 86.0% to ¥1,380 million, mainly due to foreign exchange
gains and as a result, net income attributable to owners of the parent increased 148.1% to ¥616 million.
Although the Group operates the collagen business as a single segment, we began disclosing information by productcategory starting from the three months ended June 30, 2024.
The categories of finished goods are as shown in the table below.
Category
GelatinLineupGelatin for food, capsules, and photography; by-products (such as calcium phosphate);
etc.

Collagen peptide

Collagen peptide for health foods, beauty products, etc.

Food ingredients

Stabilizers for processed meat products, gelling agents for desserts, etc.

Biomedical

Collagen, gelatin, etc. for medical use

Gelatin
In Japan, net sales increased due to robust demand for gelatin used in gummy candies and soft capsules. Additionally, higher
prices led to more opportunities for making desserts at home and a rise in demand for home-cooked meals, resulting in
growth in sales of gelatin for confectionery and cooking purposes.
In North America, sales of gelatin for general food use increased, and exports of bovine bone gelatin from India grew,
driven by strong demand for soft capsules. However, sales of porcine gelatin declined due to the suspension of production
at Nitta Gelatin USA, Inc., leading to a decrease in net sales. Net sales in India decreased due to a decline in demand forhard capsules.
Additionally, sales of photographic gelatin were strong both in Japan and overseas. However, net sales of by-products,
such as calcium phosphate, remained on par with the same period of the previous year.
As a result, overall sales in the gelatin category increased 9.6% year on year to ¥7,731 million.

- 2 -Collagen Peptide
In Japan, net sales increased due to the expanded sales of collagen products by customers. In North America, net sales
increased thanks to the success of new sales expansion efforts for collagen products and protein bars. Net sales also increased
in India thanks mainly to strong overall exports.
As a result, overall sales in the collagen peptide category increased 22.6% year on year to ¥1,710 million.
Food Ingredients
In Japan, sales of gelling agents for confectionery and desserts increased, but sales of stabilizers for processed meat declined.
As a result, overall sales of food ingredients decreased 4.3% year on year to ¥854 million.
Biomedical
In Japan, sales of medical-use collagen and gelatin to major customers increased. As a result, overall biomedical sales
increased 33.7% year on year to ¥80 million.
(2) Overview of financial position(Assets)
Total assets amounted to ¥41,216 million as of June 30, 2024, ¥1,254 million higher than at March 31, 2024. This was mainly
attributable increases in cash and deposits of ¥776 million, property, plant and equipment of ¥351 million, other current assetsof ¥175 million, and investments and other assets of ¥262 million compared to an decrease in inventories of ¥371 million.
(Liabilities)
Total liabilities stood at ¥17,694 million on June 30, 2024, ¥1 million higher than on March 31, 2024. This was mainly
attributable to increases in notes and accounts payable – trade of ¥267 million, other noncurrent liabilities of ¥137 million,
provision for bonuses of ¥131 million, and income taxes payable of ¥81 million compared to a decrease in long-term loans
payable of ¥575 million (including current portion of long-term loans payable).
(Net assets)
Net assets amounted to ¥23,522 million as of June 30, 2024, ¥1,252 million higher than at March 31, 2024. This was mainly
attributable to increases in retained earnings of ¥471 million, non-controlling interests of ¥453 million, and foreign currencytranslation adjustments of ¥281 million.
As a result, the equity ratio stood at 46.1% on June 30, 2024 compared to 45.5% on March 31, 2024.
(3) Description of Consolidated Business Forecasts and Other Forward-looking Information
The forecast of consolidated financial results for the fiscal year ending March 31, 2025 remains unchanged from that announced
on May 15, 2024 in “Consolidated Financial Results for the Fiscal Year Ended March 31, 2024.”
Actual business and other results may differ substantially from projections due to various factors.

- 3 -2. Quarterly Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Millions of yen)
Fiscal 2024
(As of March 31, 2024)
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- 4 -1Q Fiscal 2025
(As of June 30, 2024)

4,080
8,374
7,155
1,784
3,364
444
(7)
25,196

4,857
8,435
7,475
1,649
2,808
620
(7)
25,838

3,862
1,879
3,287
9,029

4,153
1,943
3,284
9,381

157
306
463

149
312
462

3,131
2,284
(143)
5,272
14,76639,962

3,242
2,445
(153)
5,534
15,37841,216

(Millions of yen)
Fiscal 2024
(As of March 31, 2024)
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
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
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- 5 -1Q Fiscal 2025
(As of June 30, 2024)

2,695
2,988
2,148
292
211
2,735
11,072

2,963
2,900
2,058
374
343
2,790
11,431

4,078
1,410
1,131
6,619
17,692

3,592
1,401
1,269
6,263
17,694

3,144
2,966
9,326
(143)
15,295

3,144
2,966
9,798
(143)
15,766

1,114

1,163

(19)
1,450
347
2,893
4,081
22,26939,962

(18)
1,731
344
3,221
4,534
23,522
41,216

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(First quarter consolidated accounting period)

9,403
7,325
2,077
1,587
489

(Millions of yen)Three Months Ended
June 30, 2024
(From April 1, 2024
to June 30, 2024)
10,377
7,780
2,596
1,563
1,033

7
23
14
225
2
25
299

23
26
15
310
－
30
406

44
－
2
47
741

35
20
3
59
1,380

0
0
－
0
741
261
479
231
248

－
0
89
89
1,290
469
820
203
616

Three Months Ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)
Net sales
Cost of sales
Gross profit on sales
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on sale of noncurrent assets
Loss on retirement of noncurrent assets
Losses related to plant closures
Total extraordinary losses
Income before provision for income taxes
Income taxes payable
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent- 6 -(Consolidated Statements of Comprehensive Income)(First quarter consolidated accounting period)

479(Millions of yen)Three Months Ended
June 30, 2024
(From April 1, 2024
to June 30, 2024)
820

47

49

202
763
(5)

2
480
(5)

22

54

1,031
1,511

582
1,403

1,032
478

949
453

Three Months Ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)
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 (loss)
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests- 7 -(3) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
None(Note Concerning Changes in Accounting Policies)(Application of “Accounting Standards for Income Taxes - Current”)
The “Accounting Standard for Income Taxes - Current” (Corporate Accounting Standard No. 27, October 28, 2022; hereinafterreferred to as the “2022 Revised Accounting Standards”) has been applied from the beginning of the first quarter of the fiscal
year under review.
The amendments to the classification of income taxes (taxation on other comprehensive income) are in accordance with thetransitional treatments prescribed in the proviso of Paragraph 20-3 of the 2022 Revised Accounting Standards and the proviso of
Paragraph 65-2(2) of the “Implementation Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No.
28, October 28, 2022; hereinafter referred to as the “2022 Revised Application Guidelines”). The change in accounting policy
had no impact on the quarterly consolidated financial statements.
(Note Concerning Quarterly Consolidated Statement of Cash Flows)
A quarterly consolidated statement of cash flows has not been prepared for the first quarter of the fiscal year under review.
Depreciation (including amortization of intangible assets other than goodwill) and amortization of goodwill for the first quarterof the fiscal year under review are as follows.
Three Months Ended June 30, 2023
(From April 1, 2023 to June 30, 2023)

Three Months Ended June 30, 2024
(From April 1, 2024 to June 30, 2024)¥425 million¥281 million

Depreciation and amortization
Amortization of goodwill

14

16(Note on Segment Information)
Segment Informationa. Three Months Ended June 30, 2023 (From April 1, 2023 to June 30, 2023)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting segment, so information isomitted.
b. Three Months Ended June 30, 2024 (From April 1, 2024 to June 30, 2024)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting segment, so information isomitted.

- 8 -(Subsequent Events)
The Company disposed of treasury stock as follows based on a resolution at the Board of Directors meeting held on July 18,
2024 regarding the disposal of treasury stock as restricted share based remuneration.
1. Overview of the disposal(1) Disposal dateAugust 2, 2024

(2) Class and number of shares for disposal

Common stock of Nitta Gelatin: 7,800 shares(3) Disposal price¥770 per share(4) Total disposal amount¥6,006,000(5) Eligible persons for the allotment of shares,
number of eligible persons, and number of

Director (1) of Nitta Gelatin (excluding outside directors): 3,600
sharesshares to be allocatedExecutive Officers (3) of Nitta Gelatin: 4,200 shares
The Company has submitted a securities notification regarding this(6) Otherdisposal of treasury stock pursuant to the Financial Instruments andExchange Act.

2. Objective and reason for the disposal
The Company passed a resolution at the meeting of the Board of Directors held on June 1, 2021 to introduce a new restricted
share based remuneration plan (“the Plan”) for the Company’s directors (excluding outside directors; below, “Eligible
Directors”) and Executive Officers (below, “Eligible Directors, etc.” to collectively refer to both Eligible Directors andExecutive Officers) in order to increase incentives more so than before toward the sustained enhancement of corporate value
and to further share value with shareholders.
In addition, at the 82nd Ordinary General Meeting of Shareholders held on June 29, 2021, approval was obtained pursuant
to the Plan regarding the establishment of an annual cap of 80 million for the total monetary remuneration paid to Eligible
Directors, a cap of 80,000 shares on the number of restricted shares allocated in each fiscal year to Eligible Directors, and theperiod from the issuance of restricted shares to the day of retirement from the position of either the Company’s director,
Executive Officer, or employee as the restriction period of the restricted shares.
For the restricted share based remuneration during the period from the 85th Ordinary General Meeting of Shareholders to the86th Ordinary General Meeting of Shareholders that is scheduled to be held in June 2025, at the meeting of the Board of
Directors held on July 18, 2024, a resolution was passed to pay monetary remuneration claims of ¥6,006,000 to the Eligible
Directors, etc., and allot 7,800 of the Company’s common stock as specified restricted shares by having the Eligible Directors,
etc. pay all said monetary remuneration claims according to the method of in-kind contribution.

- 9 -