The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)

Consolidated Financial Statements for the Year Ended March 31, 2021
FY2021 (April 1, 2020 - March 31, 2021) [UNAUDITED]May 13, 2021
Takara Bio Inc.
Tokyo Stock Exchange (1st section)4974
https://www.takara-bio.co.jp
Koichi Nakao, President
Takuya Kakemi, Executive Officer, President of Corporate
Management Division
Tel. (077) 565-6970
Scheduled date of general shareholder’s meeting:June 24, 2021
Scheduled date of starting delivery of dividends:
June 25, 2021
Scheduled date of annual securities report filing date:June 29, 2021
Supplementary documents of the financial results:
Yes
Financial results information meeting:Yes
Notes: 1. The accompanying financial statements have been prepared in accordance with accounting principles andpractices generally accepted in Japan.
2. Amounts are rounded down to the nearest million yen.
Company name:
Stock exchange listings:
Code number:
URL:
Company representative:
Contact:

1. Results for the year ended March 31, 2021 (Apr. 1, 2020 – Mar. 31, 2021)(1) Consolidated operating results(Percentages indicate changes from the same period of the previous fiscal year.)Year ended
Mar. 31, 2021

Net sales
Operating profit
Ordinary profit
Net income (loss) attributable to owners ofparent
Net income per share (in yen)
Fully diluted net income per share (in yen)
(Note) Comprehensive income(2) Consolidated financial position
Total assets
Net assets
Equity ratio (%)
Net assets per share (in yen)
(Reference) Equity(3) Consolidated financial position
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalent, end year

(Millions of yen)
46,086
13,952
14,159
9,547
79.29
－
8,674

(%)

Year ended
Mar. 31, 2020

(%)

33.3
122.4
123.1
149.9

(Millions of yen)
34,565
6,274
6,347
3,819

(3.6)
14.8
12.1
4.4

169.7

31.72
－
3,216

18.9

As of Mar. 31, 2021
(Millions of yen)

As of Mar. 31, 2020
(Millions of yen)

89.75074,30282.7
616.0574,18175,00966,591
88.7
552.2366,496

Year ended Mar. 31, 2021
(Millions of yen)

Year ended Mar. 31, 2020
(Millions of yen)

13,943(3,778)(1,103)23,308

6,339
(212)
(946)
14,462

The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)
2. Dividends

First quarter end
Second quarter end
Third quarter end
Year end
AnnualTotal dividend (Millions of Yen)
Payout ratio (%)
Dividend on equity (%)

Year ended
Mar. 31, 2020

Year ended
Mar. 31, 2021

Annual dividends per share in yen
Year ending
Mar. 31, 2022 (Forecast)

－

－

－

0.00

0.00

0.00

－

－

－

8.00
8.00
963
25.2
1.5

16.0
16.0
1,926
20.2
2.7

16.00
16.00
19.7

3. Forecast for the year ending March 31, 2022 (Apr. 1, 2021 – Mar. 31, 2022)(Percentages indicated changes from the same period of the previous fiscal year.)Six months ending Sep. 30,
2021

Net sales
Operating profit
Ordinary profit
Net income attributable to owners of the parent
Net income per share (in yen)※

(Millions of yen)
24,609
7,139
7,220
4,889
40.61

Year ending Mar. 31, 2022

(%)
41.5
91.1
89.0
115.0

50,50014,00014,200
9,800
81.38

9.6
0.3
0.3
2.6

Others(4) Changes in subsidiaries during the period(Changes in specified subsidiaries resulting in change of scope) ： No
Newly included: － (Name)
Excluded: － (Name)(5) Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) Changes based on revisions of accounting standard： No
2) Changes other than ones based on revisions of accounting standard： No
3) Changes in accounting estimates： No4) Restatement： No(6) Number of outstanding shares (Common stock)1) Number of outstanding shares at year end (Treasury stocks are included)
120,415,600
As of March 31, 2021
120,415,600
As of March 31, 2020
2) Number of treasury stocks at year end－
As of March 31, 2021－
As of March 31, 2020
3) Average number of outstanding shares
120,415,600
As of March 31, 2021
120,415,600
As of March 31, 2020

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated results for the year ended March 31, 1.2021 (April 1, 2020 – March 31, 2021)
Year ended
Year ended
Mar. 31, 2021
Mar. 31, 2020
(Millions of yen)(%)
(Millions of yen)
Net sales
33,88554.1
21,984
Operating profit
9,693
266.4
2,645
Ordinary profit
11,495186.8
4,008
Net income (loss)
8,681
230.9
2,623
Net income per share (in yen)
72.10
21.79
Fully diluted net income per share (in yen)
－
－

(%)
1.1
14.4
8.6
(4.8)

The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)
4. Non-Consolidated Financial Position
Total assets
Net assets
Equity ratio (%)
Net assets per share (in yen)
(Reference) Equity

As of Mar 31, 2021
(Millions of yen)

As of Mar. 31, 2020
(Millions of yen)

81,124
69,64585.9
578.3869,64568,04561,92791.0
514.2861,927<Reasons for the difference from the results of the previous fiscal year for the non-consolidated results>
Due to strong sales of research reagents and contract services in the fiscal year under review, we have experienced a difference
between the actual results for the previous fiscal year and the actual results for the fiscal year under review.
※ These financial statements are not subject to auditing.
※ Comment regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements contained in this document are determined by the Takara Bio Company based on information
currently available to the Company and include a number of uncertainties. Actual results could differ from these forecasts due
to changes in conditions that occur in the future. For information regarding the above, please refer to 1. Overview of Financial
Results (4) Future Outlook on page 2 of the attached document.
The Company will hold a briefing for institutional investors and analysts on May 18, 2021. The materials handed out at thisbriefing and a review of questions and answers will be posted on our website.

The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)
Contents of the attached document
1. Overview of Financial Results for the year ended March 31, 2021…………………...........…………………………...........
(1) Overview of Financial Results……………………………………………………….………….………….…………......
(2) Overview of Financial Position………………………………………………...…………………………...……..............
(3) Overview of Cash Flows…………………………………………………………….…………………………….……....
(4) Future Outlook…………………………………………………………………………………………………………….
2. Basic Concept on Selection of Accounting Standards……………………………………………………………...................
3. Consolidated Financial Statements and Primary Notes.............................................................................................................
(1) Consolidated Balance Sheets…………………………………………………………………………………...................
(2) Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income…….................................
(Consolidated Statements of Profit or Loss)……………………………………………………………………..............
(Consolidated Statements of Comprehensive Income) ………………………………………………………………….
(3) Consolidated Statements of Change in Net Assets………………………………………………………………………..
(4) Consolidated Statements of Cash Flows……………………………………………………………………......................
(5) Notes to Consolidated Financial Statements………………………………………………………………………………
(Notes on Premise of Going Concern) …………………………………………………………………………………..
(Significant Accounting Estimates) ……………………………………………………………………………………..
(Changes in Presentation Methods) ……………………………………………………………………………………..
(Additional Information)………………………………………………..…………..…………..…………..…………....
(Segment Information)……………………………………………………………………………..……………….……
(Per Share Information) …………………………………………………………………………………………………
(Significant Subsequent Events) ………………………………………………………………………………………...
4. Supplemental Information …………………………………………………………………………………………………....
(1) Trends in Key Indicators for Business Management……………………………………………………………………...
(2) Comparative Consolidated Statement of Profit or Loss …………………………………………………………………..
(3) Comparative Statement of Profit Relating to Consolidated Earnings Forecast…………………………………………...

- 1 -

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2
2
2
3
3
4
4
6
6
7
8
9
10
10
10
10
10
11
11
11
12
12
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The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)
1. Overview of Financial Results for the year ended March 31, 2021
(1) Overview of Financial Results
The outlook for the global economy in the fiscal year under review is uncertain due to the prolonged trade friction between the
United States and China, the withdrawal of the United Kingdom from the EU, and the impact of the new Coronavirus disease(COVID-19).
Under these circumstances, Takara Bio (the Group) promoted initiatives aimed at becoming a drug discovery company that
continuously creates new modalities by promoting the development of biologics platform technologies through the research
reagents and scientific instruments business and the contract development and manufacturing organization (CDMO) business basedon the six-year Takara Bio Long-Term Management Plan 2025 (the “Long-Term Management Plan”), which ends in fiscal 2025,
and the three-year Medium-Term Management Plan 2022 (the “Medium-Term Management Plan”), which ends in fiscal 2022. In
addition, the Group worked aggressively to ensure a stable supply of PCR test-related products for the new Corona Virus and toestablish a manufacturing system for regenerative medicine products, including vaccines.
In the fiscal year under review, although sales of the Gene Therapy decreased compared with the previous fiscal year, sales ofresearch reagents, scientific instruments, and contract services increased year on year. In research reagents and scientific instruments,
PCR testing-related products of the new Corona Virus contributed to the increase. As a result, net sales increased to ¥46,086 million(133.3% compared to the previous fiscal year). The cost of sales decreased to ¥14,214 million (105.6% compared to the previous
fiscal year) due to a change in the sales mix and an improvement in the production utilization rate. As a result, gross profit was¥31,872 million (151.0% compared to the previous fiscal year). Selling, general and administrative (SG&A) expenses increased to¥17,919 million (120.8% compared to the previous fiscal year) due to an increase in R&D expenses, etc. Operating income
increased to ¥13,952 million (222.4% compared to the previous fiscal year).
Due to the increase in operating income, ordinary income increased 223.1% to ¥14,159 million, income before income taxes andminority interests increased 249.4% to ¥13,552 million, and net income attributable to owners of the parent increased 249.9% to¥9,547 million.
From the first quarter of the consolidated fiscal year under review, the Company changed its reportable segments to a single
segment, and accordingly, the disclosure by segment has been omitted. For details, please refer to "3. Consolidated Financial
Statements and Primary Notes (Segment Information)."In addition, sales of in vitro diagnostics, which were launched in the third quarter of the fiscal year under review, are recorded
separately as research reagents.
(2) Overview of Financial Position
Total assets at the end of the fiscal year under review were ¥89,750 million, an increase of ¥14,740 million from the end of theprevious fiscal year. This was mainly due to an increase of ¥7,726 million in cash and deposits and an increase of ¥5,552
million in property, plant and equipment resulting from the acquisition of land and buildings for new business offices of Takara
Bio USA, Inc. and the acquisition of our manufacturing facilities.
Total liabilities at the end of the fiscal year under review were ¥15,448 million, an increase of ¥7,030 million from the end of
the previous fiscal year. This was mainly due to increases of ¥2,656 million in other current liabilities, ¥2,462 million inincome taxes payable, and ¥1,050 million in notes and accounts payable-trade.
Total net assets at the end of the fiscal year under review were ¥74,302 million, an increase of ¥7,710 million from the endof the previous fiscal year. This was mainly due to a decrease of ¥965 million in foreign currency translation adjustments dueto the appreciation of the yen, while retained earnings increased by ¥8,584 million.
(3) Overview of Cash FlowsNet cash provided by operating activities amounted to ¥13,943 million, an increase of ¥7,603 million from the previous fiscal
year. This was mainly attributable to income before income taxes and minority interests of ¥13,552 million, depreciation andamortization of ¥3,220 million, an increase in other current liabilities of ¥2,416 million, an increase in notes and accounts
receivable-trade of ¥3,559 million, income taxes paid of ¥1,854 million, and an increase in inventories of ¥1,767 million.
Net cash used in investing activities amounted to ¥3,778 million, an increase of ¥3,565 million from the previous fiscal year.
This was mainly due to purchase of property, plant and equipment and intangible assets of ¥8,687 million, proceeds from sales
and redemption of marketable securities of ¥2,000 million, and subsidy receipts of ¥1,900 million.
Net cash used in financing activities amounted to ¥1,103 million, an increase of ¥157 million from the previous fiscal year,
mainly due to cash dividends paid of ¥962 million.
As a result of the above, the balance of cash and cash equivalents at the end of the fiscal year under review, including the- 2 -The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)
effect of exchange rate changes on cash and cash equivalents, increased by ¥8,845 million from the end of the previous fiscal
year to ¥23,308 million.
(4) Future Outlook
In the next fiscal year, we expect sales to increase overall, centered on reagents, CDMO, and gene therapy. Gross profit isexpected to increase due to an increase in net sales, despite a decrease in the gross profit margin due to a change in the sales
mix. Selling, general and administrative (SG&A) expenses are expected to increase slightly from the previous fiscal year due
to an increase in personnel expenses, R&D expenses, etc.
In terms of extraordinary income and loss, in order to establish a manufacturing system for PCR diagnostic reagents and newcorona viral vaccines utilizing government subsidies, etc., we plan to record an extraordinary loss equal to the extraordinary
income from government subsidies, etc. and loss on reduction of fixed assets.
As a result, we forecast net sales of ¥50,500 million, operating income of ¥14,000 million, ordinary income of ¥14,200
million, and profit attributable to owners of parent of ¥9,800 million.
See "4. Supplementary Information (3) Comparative Statement of Profit Relating to Consolidated Earnings Forecasts" onpage 14 for a comparison of the following consolidated forecasts with the results for the year ended March 31, 2021.
From the following fiscal year, the names of research reagents, scientific instruments, and contract services in each categoryof net sales have been changed to reagents, instruments, and CDMO, respectively.
In addition, the forecast for the next fiscal year is based on the assumption that the impact of the new Corona Virus infectious
disease will continue for a certain period in fiscal 2022 (the year ending March 31, 2022), and may fluctuate depending on
circumstances. The Company will promptly disclose any necessary revisions to its earnings forecasts.

2. Basic Concept on Selection of Accounting Standards
The Group prepares its consolidated financial statements in accordance with Japanese GAAP, considering the comparability ofconsolidated financial statements between periods and between companies.
With regard to the application of IFRS, the Company's policy is to respond appropriately, taking into account various domestic andoverseas circumstances.

- 3 -The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)
3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Millions of yen)
As of Mar. 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-tradeMarketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current 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
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Others
Accumulated depreciation
Others, net
Total Property, plant and equipment
Intangible assets
Goodwill
Technology-based intangible assets
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Retirement benefit assets
Other
Total investments and other assets
Total non-current assets
Total assets- 4 -As of Mar. 31, 2021

18,266
9,102
2,000
4,511
1,208
1,874
1,479
(56)
38,38725,993
12,626
－
4,966
1,316
2,901
1,352
(41)
49,115

16,478(5,630)10,847
6,705(3,353)
3,352
7,912(5,217)
2,694
5,724
772
(35)
736
85
863
(90)
772
24,213

15,670(5,147)
10,522
7,058(3,760)3,297
7,673(5,141)
2,531
8,143
771
(87)
684
3,756
1,025
(194)
830
29,766

7,006
3,095
1,252
11,355

6,149
1,953
1,270
9,373

779
40
233
1,053
36,62275,009

1,075
114
305
1,495
40,63589,750

The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)(Millions of yen)
As of Mar. 31, 2021

As of Mar. 31, 2020
Liabilities
Current liabilities
Notes and accounts payable-trade
Lease obligations
Accrued payable-otherAccrued income taxes
Provision for bonus
Other
Total current liabilities
Non-current liabilities
Lease obligations
Retirement benefit liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Cummulative remeasurements of retirement
benefit
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

- 5 -

1,027
134
2,324
683
557
1,520
6,248

2,077
138
2,911
3,146
739
4,177
13,191

986
783
400
2,169
8,418

1,003
800
452
2,256
15,448

14,96532,89318,501
66,36014,96532,89327,08574,945

436

(529)

(300)

(234)

135
95
66,59175,009(763)
120
74,30289,750

The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)(2) Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income(Consolidated Statements of Profit or Loss)(Millions of yen)
Year ended
Mar. 31, 2021

Year ended
Mar. 31, 2020
Net sales
Cost of sales
Gross profit
SG&A expenses
Provision for doubtful accounts
Employees' salaries and bonuses
Provision for accrued bonuses
Retirement benefit expenses
R&D expenses
Other
Total SG&A expenses
Operating profit
Non-operating profit
Interest income
Foreign exchange gains
Rent income from real estate
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Foreign exchange loss
Rent expenses on real estate
Expenses of inactive non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary profit
Gain on sale of fixed assets
National subsidies
Total extraordinary profit
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Loss on discontinued business
Asset shrinkage losses
Loss on sale of investment securities
Other
Total extraordinary losses
Profit before income taxes and others
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to non-controlling interest
Net income attributable to owners of the parent- 6 -34,565
13,45921,10546,086
14,21431,872

9
4,095
297
169
3,869
6,388
14,830
6,274

17
4,577
424
191
5,545
7,163
17,91913,952

141
－
113
61
316

113
2
128
63
308

7
160
38
12
23
243
6,347

24
－
54
18
3
101
14,159

0
－
0

1
517
518

31
880
－
－
2
－
914
5,433
1,544
57
1,601
3,831
11
3,819

99
－
458
517
－
50
1,125
13,552
4,297
(326)
3,971
9,581
34
9,547

The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)(Consolidated Statements of Comprehensive Income)(Millions of yen)
Year ended
Mar. 31, 2021

Year ended
Mar. 31, 2020
Net income
Other comprehensive income
Foreign currency translation adjustment
Remeasurements of retirement benefit
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interest

- 7 -

3,831

9,581

(530)
(85)
(615)
3,216

(974)
66
(907)
8,674

3,206
9

8,648
25

The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)(3) Consolidated Statements of Changes in Net Assets
Previous fiscal year (April 1, 2019, to March 31, 2020)(Millions of yen)
Shareholders' equity

Balance at the
beginning of current
periodCumulative effect ofaccounting changes
Restated balance
Change of items during
the period
Dividends fromsurplus
Net income
attributable to ownersof the parent
Net changes of items
other thanshareholders' equity
Total changes of items
during the period
Balance at the end ofcurrent period

Accumulated other comprehensive income

Share
CapitalCapitalsurplusRetainedearnings

Total
shareholders'equity14,96532,893

15,401

63,260123

123

15,524

63,383

(842)

(842)

14,96532,893

3,819

Foreigncurrencytranslation
adjustment
964

964

NonTotal
Cumulative
accumulated Controlling
remeasurementsinterestotherof retirement
comprehensive
benefitincome
(215)

749

(215)

749

85

-

2,977

2,977

14,96532,89318,501

66,36064,095123

85

64,218

(842)

3,819

-

Total
net assets

3,819
(527)

(85)

(613)

9

436

(300)

135

95

(527)

(85)

(613)

9

(603)
2,373
66,591

Current fiscal year (From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders' equity

Balance at the
beginning of current
periodChanges of items during
the period
Dividends fromsurplus
Net income
attributable to ownersof the parent
Net changes of items
other thanshareholders’ equity
Total changes of items
during the period
Balance at the end ofcurrent period

Accumulated other comprehensive income

Share
CapitalCapitalsurplusRetainedearnings

Total
shareholders'equity14,96532,89318,501

66,360

(963)

(963)

9,547

Foreigncurrencytranslation
adjustment
436

NonTotal
Cumulative
accumulated controlling
remeasurementsinterests
otherof retirement
comprehensive
benefitincome
(300)

135

95

-

8,584

8,584

14,96532,89327,08574,945- 8 -66,591

(963)

9,547

-

Total
net assets

9,547
(965)

66

(529)

(234)

(965)

66

(898)

25

(763)

120

(898)

25

(873)
7,710
74,302

The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)(4) Consolidated Statements of Cash Flows(Millions of yen)

Year ended
Mar. 31, 2020
Net cash provided by (used in) operating activities
Profit before income taxes and others
Depreciation and amortization
Impairment loss
Depreciation and amortization on other
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other provision for bonus
Increase (decrease) in retirement benefit liabilities
Interest income
Interest expenses
Loss (gain) on sale and retirement of fixed assets
Loss on business liquidation
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in purchased receivables
Increase (decrease) in other current liabilities
Other
SubtotalInterest and dividend income received
Income expenses paid
Income taxes paid
Subsidies received
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of marketable securities
Proceeds from sale and redemption of marketablesecurities
Purchase of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Purchase of other depreciable assets
Subsidies received
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Dividends paid
Repayments of lease obligations
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- 9 -Year ended
Mar. 31, 2021
5,433
2,921
880
113
496
15
(31)
116
(141)
7
31
－
(579)
(974)
(468)
(424)
59
7,455
139
(7)
(1,247)－
6,339

13,552
3,220
－
80
486
(14)
190
16
(113)
24
97
458
(3,559)(1,767)
1,016
2,416
(573)
15,533107(24)(1,854)
181
13,943(6,785)
10,515(4,000)(2,613)
3,766
－

4,000

2,000

(3,983)(8,687)

110

14

(69)
－
(0)
(212)

(158)
1,900
(0)
(3,778)

(841)
(104)
(946)
(182)
4,998
9,464
14,462(962)(140)(1,103)(215)
8,845
14,462
23,308

The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
No items to report.
(Significant Accounting Estimates)(Goodwill)
Our group recorded goodwill at Takara Bio USA, Inc., which was recorded in the past upon the acquisition of all of the sharesof Clontech Laboratories, Inc., Rubicon Genomics, Inc. and WaferGen Bio-systems, Inc., respectively.
(1) Amounts recorded in the consolidated financial statements for the current fiscal year
(Millions of yen)
Current Consolidated
Fiscal Year
Goodwill

6,149(2) Information on the content of critical accounting estimates for identified items
Takara Bio USA, Inc. determines as a reporting unit, including goodwill, and performs procedures to determine indicators of
impairment. The recoverable amount of the reporting unit is based on its fair value. Fair value is determined primarily basedon the discounted present value of estimated future cash flows, which utilize assumptions such as future growth rates toestimate such cash flows.
As the recoverable amount sufficiently exceeds the carrying amount at the end of the fiscal year under review, the Company
considers that it is unlikely that a material impairment loss will occur even if there is a reasonable range of changes in future
growth rates and other factors used in the calculation of the recoverable amount.
(Changes in Presentation Method)(Consolidated Profit and Loss Statement)"Expenses of inactive non-current assets" which was included in "Other" under non-operating expenses in the previous fiscal
year, has been presented separately from the current fiscal year due to an increase in its monetary materiality. To reflect thischange in presentation, the consolidated financial statements for the previous fiscal year have been reclassified.
In the previous fiscal year, "Expenses of inactive non-current assets" was ¥12 million.
(Application of "Accounting Standard for Disclosure of Accounting Estimates")
The Company has applied the "Accounting Standard for Disclosure of Accounting Estimates" (The Accounting Standards Boardof Japan (ASBJ) Statement No. 31, March 31, 2020) from the consolidated financial statements as of the end of the fiscal year
under review, and has presented the notes on significant accounting estimates in the consolidated financial statements.
(Additional Information)(Accounting Estimates for the Impact of the COVID-19 Pandemic)
Based on information available at the time of preparation of the consolidated financial statements for the fiscal year underreview, the impact of the COVID-19 on our Group is assumed to continue for a certain period in fiscal 2022 (the year ending
March 31, 2022), although it varies from region to region. Although the Company makes estimates and judgments regarding
the impairment of goodwill and the recoverability of deferred tax assets at the end of the fiscal year under review based on theassumptions noted above, no indicators of impairment have been identified for goodwill, and the Company has determined thatno additional valuation allowance is required for the recoverability of deferred tax assets.
Due to the high degree of uncertainty involved in the impact of the COVID-19 pandemic, any change in the above
assumptions could affect the Group's financial condition and results of operations.

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The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)(Segment Information)
Since our group is a single segment, this information is omitted.
(Changes in reportable segments)
We have established business divisions for each product and service, and each business division has formulated acomprehensive strategy for the products and services it handles, including its subsidiaries, and developed its businessactivities. In April 2020, however, we decided to develop a business division system with the aim of becoming a drug
discovery company that creates new modalities by integrating the management resources that each business division had andadvancing the development of fundamental bio-drug discovery technologies.
As a result of this organizational review, the Bioindustry Business and Gene Therapy Business segments, which werepreviously reported segments, have been changed to a single business segment from the first quarter of the fiscal year underreview, and as a result, the reportable segments have become a single segment.
Due to this change, the disclosure of segment information for the previous fiscal year and the current fiscal year isomitted.
(Per Share Information)
Year ended Mar. 31, 2020
(Apr. 1, 2019 – Mar. 31, 2020)

Year ended Mar. 31, 2021
(Apr. 1, 2020 – Mar. 31, 2021)

Net assets per share552.23 yen

616.05 yen

Net income per share

31.72 yen

79.29 yen

(NOTE) 1. Diluted net income per share is not presented because there were no dilutive shares.
2. The basis for calculating net income per share is as follows.
Year ended Mar. 31, 2020
(Apr. 1, 2019 – Mar. 31, 2020)

Year ended Mar. 31, 2021
(Apr. 1, 2020 – Mar. 31, 2021)

3,819

9,547

-

-

3,819

9,547

120,415

120,415

Net income per share
Profit attributable to owners of parent(Millions of yen)Amounts not attributable to common stock(Millions of yen)
Profit attributable to owners of parent
attributable to common stock (Millions of yen)
Average number of shares of common stock
outstanding during the period (thousands ofshares)(Significant Subsequent Events)
Not applicable.

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The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)
4. Supplemental Information(1)Trends in Key Indicators for Business Management
1) Cash Flows(Millions of yen)

Year ended Mar. 31, 2020
(Apr. 1, 2019 – Mar. 31, 2020)
Net cash provided by (used in)operating activities
Cash flow from investing activities
Cash flow from financing activities

6,339

13,943△212△3,778△9462) Net Sales by Region

Year ended Mar. 31, 2021
(Apr. 1, 2020 – Mar. 31, 2021)△1,103(Millions of yen)

Year ended Mar. 31, 2020
(Apr. 1, 2019 – Mar. 31, 2020)

Year ended Mar. 31, 2021
(Apr. 1, 2020 – Mar. 31, 2021)

Japan

14,804

20,475

United States

8,011

7,862

China

6,391

8,415

Asia excluding Japan and China

1,877

4,917

Europe

3,207

3,743

Others271

671

34,56546,086Total

3) R&D Expenses by Reportable Segment
Disclosure is omitted because the reportable segments have been changed to a single segment from the first quarter of thecurrent fiscal year.

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The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)(2) Comparative Consolidated Statement of Income(Rounded down to one million yen)
Year ended
March 31, 2020

Year ended
March 31, 2021

Year on Year
ChangeYear on Year
Ratio

Research reagents

24,84035,18910,349141.7%

Scientific instruments

1,242

1,726

484

139.0%(Net sales)

Contract services

6,186

8,901

2,715

143.9%

Gene therapy

2,295

268

11.7%

Total net sales

34,56546,086(2,027)

Net sales

34,565

Cost of sales
Gross profit
SG & A expenses

11,521133.3%

46,086

11,521133.3%

13,45914,214755

105.6%

21,10531,872

10,766151.0%

14,83017,9193,088

120.8%

492

742

249

150.7%(Operating profit and Loss)

Transportation expenses
Advertising expenses

73

57

(15)

78.4%

Promotion expenses

579

676

97

116.8%

R&D expenses

3,869

5,545

1,675

143.3%

Administrative expense, other

9,511

10,496985

110.4%

305

401

96

131.6%

6,274

13,952

7,678

222.4%

316

308

(8)

97.3%

Enterprise taxes (external standards
taxation)
Operating profit(Non-operating income and Expenses)
Non-operating income
Non-operating expenses
Ordinary profit

243

101

(142)

41.5%

6,347

14,1597,812

223.1%(Extraordinary income & Losses)
Extraordinary income

0

518

518

-

Extraordinary losses

914

1,125

211

123.1%

Profit before income taxes and others

5,433

13,552

8,119249.4%

Income taxes

1,601

3,971

2,369

247.9%Net income

3,831

9,581

5,749

250.1%

113422

287.9%

3,819

9,547

5,727

249.9%

2,921

3,220

298

110.2%

496

486

(10)

97.9%

Net income (loss) attributable to noncontrolling interests
Net income attributable to owners of theparentDepreciation and amortization(Property, plant and equipment andintangible assets)
Amortization of goodwill※1 Sales of research reagents include the net sales of in-vitro diagnostic reagents, which were launched in the third quarter ofthe fiscal year under review.
※2 From the fiscal year under review, net sales previously classified as "other" in the previous fiscal year included in “Research
reagents”. Results for the previous fiscal year in the table have been reclassified, and reflect this change.
※3 Due to the change of reportable segments to a single segment from the fiscal year under review, disclosure of profit and loss
(operating income) by segment is omitted.

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The original disclosure in Japanese was released on May 13, 2021 at 15:00 (GMT+8)(3) Comparative Statement of Profit Relating to Consolidated Earnings Forecasts(Rounded down to one million yen)
Year on year
Year on year
ChangeRatio

Year ended
March 31, 2021

Year ending
March 31, 2022

Reagents

35,18936,801

Instruments

1,726

1,720

(6)

99.7%

CDMO

8,901

10,584

1,682

118.9%(Net sales)
1,611

104.6%

Gene therapy

268

1,393

1,124

519.0%

Total Net Sales

46,08650,5004,413

109.6%Net sales

46,08650,5004,413

109.6%

Cost of sales

14,214

16,4822,268

116.0%

Gross profit

31,87234,0172,144

106.7%

SG & A expenses

17,91920,0172,097

111.7%

742

837

95

112.9%(Operating profit and Loss)

Transportation expenses
Advertising expenses

57

83

26

146.2%

Promotion expenses

676

871

194

128.8%

R&D expenses

5,545

5,812

266

104.8%

Administrative expenses, other
Enterprise taxes(external standards taxation)
Operating profit

10,496

12,003

1,507

114.4%

401

408

6

101.7%

13,952

14,00047100.3%

Non-operating income

308

301

(6)

98.0%

Non-operating expenses

101

101

0

100.7%

14,15914,20040

100.3%

Extraordinary income

518

4,592

4,073

885.5%

Extraordinary losses

1,125

4,651

3,526

413.3%(Non-operating income and Expenses)

Ordinary profit(Extraordinary income & Losses)

Profit before income taxes and others

13,552

14,140587

104.3%

Income taxes

3,971

4,314

343

108.7%Net income
Net income (loss) attributable to noncontrolling interests
Net income attributable to owners ofparent

9,581

9,825

243

102.5%

34

25

(8)

75.0%

9,547

9,800

252

102.6%

3,220

3,653

433

113.4%

486

473

(12)

97.4%

Depreciation and amortization (Property,
plant and equipment and intangible assets)
Amortization of goodwill※1 From the fiscal year ending March 2022, the names of “Research reagents”, “Scientific instruments”, and “Contract
Services” on Net sales have been changed to “Reagents”, “Instruments”, and CDMO”, respectively.

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