The original disclosure in Japanese was released on November 6, 2018 at 17:00 (GMT+8)

Consolidated Financial Statements for the Second Quarter Ended September 30, 2018
FY2019 (April 1, 2018 - March 31, 2019) [UNAUDITED]
November 6, 2018
Takara Bio Inc.
Tokyo Stock Exchange (1st section)4974
http://www.takara-bio.co.jp
Koichi Nakao, President
Shuichiro Matsuzaki, Executive Vice President
Tel. (077) 565-6970
Quarterly statement filing date (as planned):
November 9, 2018
Scheduled date of starting delivery of dividends:
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 six months ended September 30, 2018 (Apr. 1, 2018 – Sep. 30, 2018)(1) Operating results(Percentages indicate changes from the same period of the previous fiscal year.)Six months ended Sep. 30, 2018
(Millions of yen)(%)

Six months ended Sep. 30, 2017
(Millions of yen)(%)

17,370
2,623
2,669
1,720

23.0
280.9
248.5
468.5

14,126
688
766
302

7.0
(50.0)(46.9)(54.6)

(- %)

2.51
(366)

(- %)

Net sales
Operating income
Ordinary income
Net income (loss) attributable to owners of theparent
Net income per share (in yen)
Fully diluted net income per share (in yen)
Note: Comprehensive income

14.29
849

(2) Financial position

Total assets
Net assets
Equity ratio (%)
Net assets per share (in yen)
(Reference) Equity

As of Sep. 30, 2018
(Millions of yen)

As of Mar. 31, 2018
(Millions of yen)

68,67762,26790.5
516.31
62,172

68,67061,95990.1
513.6661,852

Partial revision of accounting standard related to tax effect accounting (Article 28 on corporate accounting standard, February 16, 2018) has been applied
from the beginning of the year ending March 31, 2019. Accordingly, financial position for the year ended March 31, 2018 indicates the numerical value
after retroactive adjustment due to this revision.

2. Dividends
Annual dividends per share in yen
Year ended Mar. 31,
Year ending Mar. 31,
20192019 (Forecast)
0.00
0.00
4.50
6.00
4.50
6.00

Year ended Mar. 31,
2018First quarter end
Second quarter end
Third quarter end
Year end
AnnualNote: No revision of dividend payment forecast since the most recently announced payment forecast.

3. Forecast for the year ending March 31, 2019 (Apr. 1, 2018 – Mar. 31, 2019)(Percentages indicated changes from the same period of the previous fiscal year.)Year ending Mar. 31, 2019
Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
Net income attributable to owners of the parent
per share (in yen)

(Millions of yen)
35,800
5,000
5,200
3,100
25.74

(%)
10.8
40.6
34.6
32.8

Note: Revision of financial forecast since the most recently announced financial forecast.: Yes.

※

Others(1) Changes in subsidiaries during the period(Changes in specified subsidiaries resulting in change of scope) ： No
Newly included: - (Name)
Excluded: - (Name)(2) Application of special accounting methods to the consolidated quarterly financial statements : No
(3) 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(4) Number of outstanding shares (Common stock)1) Number of outstanding shares at year end (Treasury stocks are included)
120,415,600
As of September 30, 2018
As of March 31, 2018
120,415,600
2) Number of treasury stocks at year end
As of September 30, 2018
As of March 31, 2018
3) Average number of outstanding shares (Quarterly total)
120,415,600
As of September 30, 2018
120,415,600
As of March 31, 2018※

These quarterly 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 Group based on information
currently available to the Group and include a number of uncertainties. Actual results could differ from these forecasts due tochanges in conditions that occur in the future. For information regarding the above, please refer to 1. Quality Information forthe six months ended September 30, 2018 (4) Qualitative Information Regarding Consolidated Forecasts, on page 3 of theattached document.
(Change in calendar indication)
Calendar indication has been changed from Japanese style to western style since Consolidated Financial Statements for the firstquarter ended June 30, 2018.

The original disclosure in Japanese was released on November 6, 2018 at 17:00 (GMT+8)
Contents of the attached document
1. Qualitative Information for the six months ended September 30, 2018………………………………………………............
(1) Consolidated Financial Results……………………………………………………………………………………………
(2) Consolidated Financial Position…………………………………………………………………………………………...
(3) Consolidated Cash Flows………………………………………………………………………………………………….
(4) Qualitative Information Regarding Consolidated Forecasts………………………………………………………………
2. Consolidated Quarterly Financial Statements and Primary Notes…………………………………………………………….
(1) Consolidated Quarterly Balance Sheets…………………………………………………………………………………...
(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income…….
(Consolidated Quarterly Statements of Income) …………………………………………………………………...........
(For the six months ended September 30, 2018)(Consolidated Quarterly Statements of Comprehensive Income) ………………………………………………………
(For the six months ended September 30, 2018)(3) Consolidated Quarterly Statements of Cash Flows………………………………………………………………………..
(4) Notes to Consolidated Quarterly Financial Statements……………………………………………………………………
(Notes on Premise of Going Concern) …………………………………………………………………………………..
(Notes in case of Changes in Marked Amount of Shareholders’ Equity)………………………………………………..
(Additional Information)…………………………………………………………………………………………………
(Segment Information) …………………………………………………………………………………………………..
3. Supplementary Information …………………………………………………………………………………………………..
(1) Trends in Key Management Indicators……………………………………………………………………………………
(2) Comparative Consolidated Statement of Income …………………………………………………………………………
(3) Comparative Statement of Income Relating to Consolidated Earnings Forecasts………………………………………...

- 1 -

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2
3
3
3
4
4
6
6
7
8
9
9
9
9
10
11
11
12
13

1. Qualitative Information for the six months ended September 30, 2018
(1) Consolidated Financial Results
In the six months ended September 30, 2018, although the Japanese economy continued to maintain a moderate recovery as
personal consumption and corporate earnings improved, the future of the global economy continues to be unpredictable due to theprice hikes of crude oil and raw materials and the U.S. trade friction issue.
Under these circumstances, the three-year Takara Bio’s Medium-Term Management Plan FY2020 started in FY2018 aims tostrengthen the three business segments: the Bioindustry Business, the Gene Therapy Business, and the Agribio Business andbusiness bases which support them to enhance standing of the Takara Bio Group (the Group) as a global industrial company forregenerative medical products, and further to achieve prodigious growth. Under this overall policy, the Group promoted initiatives
to achieve the operating income of ¥6.0 billion as the target for fiscal 2020, final year of the revised Medium-Term Management
Plan.
As a result, overall net sales increased 23.0% year on year to ¥17,370 million, on contributions from sales for research reagentsexceeding those of the same period of the previous fiscal year and receipt of licensing fees for co-development/exclusive sales
related to NY-ESO-1・siTCRTM and CD19・CAR gene therapy products. Cost of sales increased 18.2% year on year to ¥7,049
million, and gross profit increased 26.5% year on year to ¥10,321 million. Selling, general and administrative (SG&A) expenses
increased 3.0% year on year to ¥7,697 million due to the increase in personnel expenses, but the Group recorded operating income
up 280.9% year on year to ¥2,623 million.
Accompanied with the increase in operating income, ordinary income increased 248.5% to ¥2,669 million, income before income
taxes and minority interests increased 225.0% year on year to ¥2,436 million, and net income attributable to owners of the parent
increased 468.5% year on year to ¥1,720 million.
The statuses of the Group business segments are as follows.
Bioindustry Business
Given the ever-widening activities of biotechnology R&D, the Group has positioned the the Bioindustry Business as its corebusiness, which mainly develops and provides products and services supporting such R&D activities.
In the six months ended September 30, 2018, sales of contracted service decreased year on year, but sales of research reagents andscientific instruments increased year on year.
As a result of the above, sales to external customers for this business increased 9.2% year on year to ¥14,316 million, and grossprofit increased 4.9% year on year to ¥8,311 million due to an increase of cost percentage from change of sales composition byitem and others. Selling, general and administrative (SG&A) expenses were ¥5,722 million (year on year ratio 104.9%), and theGroup recorded operating income up 4.7% year on year to ¥2,588 million.
Gene Therapy Business
The business focuses on clinical development of gene therapies for diseases such as cancer. These therapies represent
the oncolytic virus therapy utilizing canerpaturev (Abbreviated to C-REV, Former HF10) and the engineered T celltherapy utilizing the original Takara Bio technologies such as the RetroNectin method for a high efficiency genetransduction; the RetroNectin expansion-culture system for a high efficient expansion for lymphocytes; as well as
siTCR TM.
In the six months ended September 30, 2018, the licensing fees for domestic co-development and exclusive sales related to NYESO-1・siTCRTM and CD19・CAR gene therapy products and sales of the therapeutic products based on the agreement was
generated.
As a result, net sales to external customers for this business was ¥2,144 million (No result in the previous fiscal year), and grossprofit were ¥1,862 million (No result in the previous fiscal year). SG&A expenses decreased 21.9% year on year to ¥664 million
due to decrease in R&D expenses. Accordingly, operating income has been highly improved ¥1,198 million, compared with ¥850
million in the same period of previous fiscal year.
AgriBio BusinessThis business uses its unique leading-edge biotechnology to identify the scientific basis of foodstuffs. Based on this evidence, it
develops, manufactures, and sells functional food ingredients. The AgriBio Business focuses on rolling out products related to
Gagome kombu (kelp)-derived “Fucoidan,” agar-derived agaro-oligosaccharide, Ashitaba (Angelica herb)-derived “Chalcone,”the herb (Peucedanum japonicum)-derived "Isosamidin," yam, (Dioscorea esculenta)-derived “Yamsgenin”, and mushroom.
In the six months ended September 30, 2018, net sales of mushroom-related products was similar at the level of previous fiscal
year, and net sales of functioinal foods-related products declined year on year.
- 2 -The original disclosure in Japanese was released on November 6, 2018 at 17:00 (GMT+8)
Consequently, net sales to external customers for this business decreased 10.2% year on year to ¥909 million, and gross profit
decreased 37.2% to ¥147 million. SG&A expenses were same level as previous fiscal year, ¥232 million (year on year ratio
98.1%), and the operating loss was badly ¥85 million, compared with ¥2 million in the same period of previous fiscal year.
(2) Overview of Financial Position for the six months ended September 30, 2018
In the six months ended September 30, 2018, total assets were ¥68,677 million, an increase of ¥6 million compared with that at
the end of the previous fiscal year. This increase primarily resulted from an increase of ¥1,573 million in cash and deposits and anincrease of ¥670 million in inventories such as work in progress despite a decrease of ¥1,257 million in notes and accounts
receivable-trade and a decrease of ¥953 million in intangible assets.
Total liabilities were ¥6,409 million, a decrease of ¥301 million compared with that at the end of the previous fiscal year. Thisdecrease primarily resulted from a decrease of ¥319 million in notes and accounts receivable-trade and a decrease of ¥417 million
in accounts payable-other of current liabilities despite an increase of ¥186 million in accrued income taxes and an increase of¥222 million in allowance.
Total net assets stood at ¥62,267 million, an increase of ¥308 million compared with that at the end of the previous fiscal year.
The main factors were an increase of ¥1,178 million in retained earnings despite a decrease of ¥873 million in foreign currencytranslation adjustment.
(3) Overview of Cash Flows for the six months ended September 30, 2018
Net cash provided by operating activities was ¥3,713 million, up by ¥3,302 million compared with the previous fiscal year. Thiswas primarily due to an increase of ¥1,686 million in income before taxes and minority interests and a decrease of ¥773 million
in current liabilities.
Net cash provided by investing activities was ¥1,803 million, a decrease of ¥10,815 million compared with the previous fiscal
year. This was primarily due to the elimination of ¥12,396 million from purchase of shares of subsidiaries accompanying changes
in the scope of consolidation occurred in the previous fiscal year.
Net cash used in financing activities was ¥540 million, an increase of ¥22 million compared with the previous fiscal year. Thiswas primarily because of a ¥60 million increase in cash dividends paid.
As a result of the above, cash and cash equivalents at the six months ended September 30, 2018, including the effect of
exchange rate change on cash and cash equivalents, stood at ¥11,218 million, up by ¥1,166 million from the previous fiscal yearend.
(4) Overview of Qualitative Information Regarding Consolidated Forecasts
As for consolidated financial forecast for FY2019, the Company has revised the financial forecast disclosed on May 11, 2018,considering results for the six months ended September 30, 2018 and recent progress in our business,
Net sales in Gene Therapy business is expected to be exceeded the plan while that in Bioindustry business and AgriBio businessremains unachieved as a possibility. Accordingly, the Company downwardly revised the forecast on the whole.
As for profit, gross profit would be dropped due to the unachieved net sales, but operating income would be left unchanged as aresult of a prospect absorbing the downward factor in reducing over the entire SG&A expenses.
For a comparison between revised forecasts for consolidated results, previous period results, and previous forecasts, refer to“Comparative Statement of Income Relating to Consolidated Earnings Forecasts” on page 14.

- 3 -2. Consolidated Quarterly Financial Statements and Primary Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
As of Mar. 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
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
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investments and other assets
Total investments and other assets
Total noncurrent assets
Total assets- 4 -As of Sep. 30, 201817,537
8,031
2,000
4,484
334
1,192
978
(42)
34,516

19,111
6,774
2,000
4,510
754
1,416
898
(45)
35,42012,825(5,611)
7,214
7,561(5,360)2,201
7,080(4,613)
2,466
6,588
16
(16)
－
63
18,534

12,704(5,761)
6,942
7,438(5,366)
2,071
7,068(4,873)
2,195
6,585
15
(15)
－
713
18,5098,259
5,903
14,163

7,824
5,384
13,2091,456
1,456
34,154
68,6701,537
1,537
33,256
68,677

The original disclosure in Japanese was released on November 6, 2018 at 17:00 (GMT+8)(Millions of yen)
As of Sep. 30, 2018

As of Mar. 31, 2018
Liabilities
Current liabilities
Notes and accounts payable-trade
Accrued income taxes
Provision
Other
Total current liabilities
Noncurrent liabilities
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Noncontrolling interests
Total net assets
Total liabilities and net assets

- 5 -

1,875
431
333
3,104
5,745

1,555
618
556
2,712
5,442

659
307
966
6,711

668
298
967
6,409

14,96532,893
12,28560,144

14,96532,893
13,464
61,323

2,042
(334)
1,707
106
61,95968,670

1,168
(320)
848
95
62,267
68,677

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income(Consolidated Quarterly Statements of Income)(For the six months ended September 30, 2018)(Millions of yen)Six months ended
Sep. 30, 2018

Six months ended
Sep. 30, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Employees' salaries and bonuses
Retirement benefit expenses
R&D expenses
Provision for allowances
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Subsidy income
Foreign exchange gains
Rent of Real estate
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Dormant fixed asset cost
Real estate leasing expense
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of noncurrent assets
Loss due to disaster
Impairment loss
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income (loss) attributable to the noncontrolling interest
Net income attributable to owners of the parent- 6 -14,126
5,965
8,160

17,370
7,049
10,321

1,742
87
2,297
191
3,152
7,471
688

1,947
88
2,104
277
3,280
7,697
2,623

40
1
23
43
20
129

43
2
－
45
7
98

6
－
29
15
1
52
766

－
24
4
20
2
52
2,669

0
0

0
0

16
－
－
16
749
406
43
450
299
(3)
302

63
128
41
233
2,436
862
(144)
718
1,717
(2)
1,720

The original disclosure in Japanese was released on November 6, 2018 at 17:00 (GMT+8)(Consolidated Quarterly Statements of Comprehensive Income)(For the six months ended September 30, 2018)(Millions of yen)Six months ended
Sep. 30, 2018

Six months ended
Sep. 30, 2017
Net income
Other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Noncontrolling interest

- 7 -

299

1,717

(692)
26
(665)
(366)

(882)
14
(867)
849

(363)
(2)

861
(11)

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

Six months ended
Sep. 30, 2017
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
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
Increase (decrease) in net defined benefit liability
Interest income
Interest expenses
Loss (gain) on sales and retirement of non-current assets
Disaster loss
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments for time deposits
Proceeds from time deposits
Purchase of marketable securities
Proceeds from sales of property, plant and equipment
and intangible assets
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment
and intangible assets
Purchase of other depreciable assets
Purchase of shares of subsidiaries accompanying
changes in the scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Repayments of long-term debt
Cash 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- 8 -Six months ended
Sep. 30, 2018
749
1,247
－
71
236
9
(215)
19
(40)
6
16
－

2,436
1,336
41
82
247
4
224
10
(43)
－
62
128

1,708

1,148

(728)
(754)
(938)
(197)
1,190
59
(0)
(838)
410

(958)
(253)
(165)
(95)
4,208
43
－
(538)
3,713

(6,304)
6,014－(3,938)3,442(2,000)

－

2,000

(635)

(1,264)

456

1

(33)

(46)

(12,396)－279(12,619)1(1,803)

(13)
(480)
(24)
(518)
(289)
(13,016)
22,200
9,184

－
(540)
－
(540)
(202)
1,166
10,051
11,218

The original disclosure in Japanese was released on November 6, 2018 at 17:00 (GMT+8)(4) Notes to Consolidated Quarterly Financial Statements(Notes on Premise of Going Concern)
No items to report.
(Notes in case of Changes in Marked Amount of Shareholders’ Equity)
No items to report.
(Additional Information)(Application of partial revision of accounting standard related to tax effect accounting)Partial revision of accounting standard related to tax effect accounting (Article 28 on corporate accounting standard, February
16, 2018) has been applied at the beginning of period for the three months ended June 30, 2018, and category statement toinvestments and other assets for deferred tax assets and to noncurrent liabilities for deferred tax liability has been made.
(Agreement Execution relating to Business Reorganization by Simplified Absorption-type Company Split)
The Company made a resolution at the meeting of the Board of Directors held on September 20, 2018 pursuant to which theCompany would transfer the Group’s functional food business to Shionogi Healthcare Co., Ltd (Shionogi Healthcare) in accordancewith the Simplified Absorption-type Company Split with the effective date of January 1, 2019 (scheduled), and entered into anabsorption-type split agreement on the same day.
1. Purpose of Absorption-type Split
The Company’s Medium-Term Management Plan 2020 started in 2017 aims to promote three businesses: Bioindustry, Gene
Therapy, and AgriBio businesses, enhance Takara Bio’s standing as a global industrial company for regenerative medicine products,
and to achieve prodigious growth.
Under the plan, the Group engaged in the business in line with its growth strategy. Through activities based on recent progressin the business environment, it is considerably more important in creating high corporate value, with the aim of fulfilling “selection
and concentration” in business operation and achieving the plan. With this background, the Company has been seeking a company
to continue the business maximizing the use of corporate resource such as research achievements, etc. accumulated in the functional
food business. As a result of discussion and negotiations with Shionogi Healthcare, a group company of Shionogi & Co., Ltd.
strengthening the functional food business, the Company has decided to implement a business reorganization by the company split.
2. Split Method, Split Date and Details of Split Allotment(1) Split Method
The functional food business in the Group’s AgriBio business will transferred to Shionogi Healthcare due to the absorption-type
split method which the Company is a splitting company.
(2) Split Date
January 1, 2019 (scheduled)(3) Details of Split Allotment
The compensation amount for this split receiving from Shionogi Healthcare will be 534 million yen in cash.
Note: Compensation may be adjusted afterward due to changes of assets and liabilities succeeded.
(4) Assets and Liabilities allocated and Book Value (As of March 31, 2018)
Assets(millions of yen)
Liabilities

Current assets

356

Current liabilities

50

Non-current assets

150

Non-current liabilities-

Total assets

506

Total liabilities

50

Note: The above amount will be finalized by considering the changes of financial position until the effective date.

3. Reason of Detail Allotments related to Split
For the purpose of validity assessment of compensation in the relevant business, the Company selected Value Advisory LLC(Value) as a third-party advisory institution and requested Value to assess the business value. To determine the compensation in
the relevant business, the Company has discussed with Shionogi Healthcare based on the circumstances such as financial status
in business, assets condition, future outlook, etc. and reference to assessment results from Value, reaching agreement on thecompensation amount in stated Article 2. (3).
- 9 -

4. Outlines of Successor Involved in Split
Company Name

Shionogi Healthcare Co., Ltd

Head Office

7th Floor, Yodoyabashi Square, 6-18, Kitahama 2-chome, Chuo-ku, Osaka 541-0041, Japan

Representative

Itaru Hirano, President and CEO

Paid-in Capital

10 million yen (As of March 31, 2018)

Business Description

Development, manufacture and sales of healthcare products such as OTC pharmaceuticals, quasipharmaceuticals, medical device, etc.

(Segment Information)
I. Equivalent period of previous fiscal year (From Apr. 1, 2017 to Sep. 30, 2017)1.

Net sales and income (loss) by reportable segment
Gene
Therapy

AgriBio

13,114
－

－

1,012

－

13,114－

Bioindustry
Net sales
External customers
Corporate
Total(Millions of yen)Amount recognized in
Adjustment consolidated quarterly(Note: 1)statement of income(Note: 2)

Total

14,126

－

2

2

(2)

14,126－

1,014

14,129(2)

14,126

Segment income (loss)
2,473
(850)
(2)
1,619
(930)
688
Notes: 1. The adjustment for segment income was a loss of ¥930 million comprising of the Company not allocated toreportable segments. Expenses of the Company primarily consist of general and administrative expenses and R&D
expenses not attributed to reportable segments.
2. Segment income (loss) has been adjusted to the operating income of consolidated quarterly financial statements.
2.

Noncurrent asset impairment losses and goodwill, and others of each reportable segment(Significant impairment losses concerning noncurrent asset)
No items to report.
(Significant changes to the amount of goodwill)
In Bioindustry business, the wholly owned subsidiary Takara Bio USA Holdings Inc. acquired shares of WaferGen Biosystems, Inc. and Rubicon Genomics, Inc., and thereby the Group allocated the goodwill. Based on this, the increased amountof goodwill was ¥7,713 million for the six month ended September 30, 2018. This amount is based on tentative calculation
due to incompleteness of distribution of acquisition costs.

II. Six months ended September 30, 2018 (From Apr. 1, 2018 to Sep. 30, 2018)
1. Net sales and income (loss) by reportable segment(Millions of yen)Amount recognized in
Adjustment
consolidated financial(Note: 1)statements(Note: 2)

Bioindustry

Gene
Therapy

AgriBio

14,316
－

2,144
－

909
－

17,370－－－17,370－14,316

2,144

909

17,370－17,370Total

Net sales
External customers
Corporate
Total

Segment income (loss)
2,588
1,198
(85)
3,701
(1,078)2,623
Notes: 1. The adjustment for segment income was a loss of ¥1,078 million comprising of the Company not allocated toreportable segments. Expenses of the Company primarily consist of general and administrative expenses and R&D
expenses not attributed to reportable segments.
2. Segment income (loss) has been adjusted to the operating income of consolidated quarterly financial statements.
2. Noncurrent asset impairment losses and goodwill, and others of each reportable segment(Significant impairment losses concerning noncurrent asset)
In AgriBio business segment, the impairment loss for business assets such as prospectively unused building and others has
been appropriated as extraordinary losses.
The amount of impairment loss was ¥41 million for the six months ended September 30, 2018
(Significant changes in the amount of goodwill)
No items to report.
- 10 -

The original disclosure in Japanese was released on November 6, 2018 at 17:00 (GMT+8)
3. Supplementary Information(1) Trends in Key Management Indicators1). Cash Flow
Term

(Millions of yen)Six months ended
Sep. 30, 2017

Six months ended
Sep. 30, 2018Year ended
Mar. 31, 2018

(Apr. 1, 2017 - Sep. 30, 2017) (Apr. 1, 2018 - Sep. 30, 2018) (Apr. 1, 2017 - Mar. 31, 2018)
Net cash provided by (usedin) operating activities

410

3,713

3,935

Net cash provided by (usedin) investing activities(12,619)(1,803)(14,755)

(518)

(540)

(1,205)

Net cash provided by (usedin) financing activities
2). Net Sales by Region(Millions of yen)Six months ended

Six months ended

Year ended

Sep. 30, 2017
Sep. 30, 2018
Mar. 31, 2018
(Apr. 1, 2017 - Sep. 30, 2017) (Apr. 1, 2018 - Sep. 30, 2018) (Apr. 1, 2017 - Mar. 31, 2018)
Japan

5,731

7,652

14,266

U.S.

3,552

4,040

7,240

China

2,519

3,001

5,524

844

991

1,754

Europe

1,353

1,557

3,257

Other

124

127

268

Total

14,126

17,37032,312

Asia excluding
Japan and China

3). R&D Expenses by Reportable Segment(Millions of yen)Six months ended
Sep. 30, 2017

Six months ended
Sep. 30, 2018Year ended
Mar. 31, 2018

(Apr. 1, 2017 - Sep. 30, 2017) (Apr. 1, 2018 - Sep. 30, 2018) (Apr. 1, 2017 - Mar. 31, 2018)
Bioindustry

1,382

1,353

2,693

Gene therapy

841

655

1,804

AgriBio

1－

6

Corporate

71

95

148

Total

2,297

2,104

4,653

- 11 -

(2) Comparative consolidated statement of income(Rounded down to one million yen)Six months ended
Year on year
Year on year
Sep. 30, 2019
ChangeRatio

Six months ended
Sep. 30, 2018
（Net Sales）
Research reagents
Scientific instruments
Contracted services
Other
Bioindustry Total
Gene therapy
Functional foods
Mushrooms
AgriBio total

10,000
1,306
1,590
217
13,114－

Total Net Sales(Operating Income and Loss)
Net Sales

1,149
84
(34)
3
1,202
2,144
(103)
0
(102)

111.5%
106.5%
97.8%
101.7%
109.2%
－

350
661
1,012

11,149
1,390
1,555
220
14,316
2,144
247
662
909

14,126

17,3703,244

123.0%

70.5%
100.1%
89.8%

14,126

17,3703,244

123.0%

Cost of sales

5,965

7,049

1,083

118.2%

Gross profits

8,160

10,3212,160

126.5%

SG&A expenses

7,471

7,697

226

103.0%

Transportation expenses
Advertising expenses
Promotion expenses
R&D expenses
Administrative expenses, other
Enterprise taxes (external standards taxation)

303
39
394
2,297
4,332
103

339
30
344
2,104
4,719
159

36
(9)
(50)
(193)
387
56

111.9%
76.5%
87.1%
91.6%
108.9%
154.6%

688

2,623

1,934

380.9%

Operating income(Non-operating Income and Expenses)
Non-operating income

129

98

(31)

76.1%

Non-operating expenses

52

52

0

100.0%

Ordinary income

766

2,669

1,903

348.5%(Extraordinary Income & Losses)
Extraordinary income

0

0

0

216.7%

Extraordinary losses

16

233

217

1,398.2%

Income before income taxes and minority interests

749

2,436

1,686

325.0%

Income taxes

450

718

268

159.6%Net Income
Net income (loss) attributable to noncontrollinginterests
Net income attributable to owners of the parent

299

1,717

1,418

574.0%

(3)

(2)

0

－

302

1,720

1,418

568.5%

1,247

1,336

89

107.2%

236

247

10

104.4%

Year on year
ChangeYear on year
Ratio

Depreciation and amortization (Property, plant andequipment and intangible assets)
Amortization of goodwill
Profit and loss by business segment (Operating income)Six months ended
Sep. 30, 2018
Bioindustry
Gene therapy
AgriBio
Corporate
Total- 12 -

Six months ended
Sep. 30, 2019

2,473
(850)
(2)
(930)

2,588
1,198
(85)
(1,078)

115
2,049
(82)
(147)

104.7%
－
－
－

688

2,623

1,934

380.9%

The original disclosure in Japanese was released on November 6, 2018 at 17:00 (GMT+8)(3) Comparative statement of income relating to consolidated earnings forecasts(Rounded down to one million yen)
Year onYear onPrevious
Previous
year
year
forecast
forecast
ChangeRatio
ChangeRatio

Year ended
Mar. 31, 2018
ActualYear ending Mar.
31, 2019
Previous forecast

Year ending
Mar. 31, 2019
Current forecast

Research reagents

22,207

24,071

23,5091,302

105.9%

(562)

97.7%

Scientific instruments

2,635

3,262

2,680

45

101.7%

(582)

82.2%

Contracted services

4,210

5,002

4,558

347

108.3%

(443)

91.1%

514

382

500

(14)

97.3%

118

131.0%（Net Sales）

Other
Bioindustry Total

29,56832,71931,2491,681

105.7%(1,469)95.5%

Gene therapy

500

1,860

2,590

2,090

518.1%

730

139.2%

Functional foods

(294)

57.5%

(156)

71.8%

693

555

398

Mushrooms

1,550

1,664

1,560

9

100.6%

(103)

93.8%

AgriBio total

2,243

2,219

1,959

(284)

87.3%

(260)

88.3%

Total Net Sales

32,31236,80035,8003,487

110.8%(1,000)97.3%

Net Sales

32,31236,80035,8003,487

110.8%(1,000)97.3%

Cost of sales

13,657

15,122

14,8901,232

109.0%

(232)

98.5%

Gross profits

18,655

21,677

20,9092,254

112.1%

(767)

96.5%

SG&A expenses

15,09916,677

15,909810

105.4%

(767)

95.4%

643

758

734

91

114.3%

(23)

96.9%

(Operating Income and Loss)

Transportation expenses
Advertising expenses

83

93

55

(27)

67.2%

(38)

59.5%

Promotion expenses

729

812

735

5

100.8%

(77)

90.4%

R&D expenses

4,653

5,229

4,555

(97)

97.9%

(673)

87.1%

Administrative expenses, other
Enterprise taxes(external standards taxation)

8,750

9,513

9,533

782

108.9%

20

100.2%

239

269

294

55

123.1%

25

109.4%

Operating income

3,555

5,000

5,000

1,444

140.6%－

100.0%

Non-operating income

402

257

331

(70)

82.5%

74

128.9%

Non-operating expenses

96

57

131

35

137.2%

74

229.8%

3,861

5,200

5,200

1,338

134.6%－

100.0%

Extraordinary income

0

－

69

68

8,995.6%

69－

Extraordinary losses(Non-operating Income and Expenses)

Ordinary income(Extraordinary Income & Losses)

501

555

751

249

149.8%

196

135.3%

Income before income taxes andminority interests

3,361

4,644

4,518

1,157

134.4%

(126)

97.3%

Income taxes

1,023

1,529

1,410

387

137.8%

(119)

92.2%

Net Income

2,338

3,115

3,108

770

132.9%(7)

99.8%

Net income (loss) attributable tononcontrolling interests
Net income attributable toowners of the parent

3

15

8

5

268.5%

(7)

52.2%

2,335

3,100

3,100

764

132.8%－

100.0%

Depreciation and amortization(Property, plant and equipment andintangible assets)

2,568

2,828

2,724

155

106.1%

(104)

96.3%

489

510

500

11

102.3%(9)98.1%

Year onyear
ChangeYear onyear
Ratio

Previous
forecast
ChangePrevious
forecast
Ratio

101.4%

(744)

90.1%

Amortization of goodwill

Profit and loss by business segment (Operating income)Year ended
Mar. 31, 2018
ActualYear ending Mar.
31, 2019
Previous forecast

Year ending
Mar. 31, 2019
Current forecast

Bioindustry

6,683

7,523

6,778

95

Gene therapy(1,322)

(309)

442

1,765

－

752

－

AgriBio

107

98

25

(81)

23.7%

(73)

25.6%

Corporate(1,912)(2,312)(2,247)

(335)

－

65

－

Total

3,555

5,000

5,000

1,444

140.6%－

100.0%- 13 -