The original disclosure in Japanese was released on December 17, 2018 at 15:00 (GMT+8)

December 17, 2018
CompanyTakara Bio Inc.

Headquarters

Nojihigashi 7-4-38, Kusatsu, Shiga 525-0058, Japan

Representative

Koichi Nakao, President & CEOContact

Shuichiro Matsuzaki, Executive Vice President

Telephone(+81)77-565-6970

Websitehttp://www.takara-bio.com/(First Section of the TSE, code: 4974)

Notice Regarding Transfer of Mushroom Business
Kusatsu/Shiga, Japan-December 17, 2018 – Takara Bio Inc. (Takara Bio), today announced that a resolution has been
made at meeting of the Board of Directors, to transfer Takara Bio Group’s mushroom business to Yukiguni Maitake
Co., Ltd (Yukiguni Maitake) with the effective date of March 1, 2019 (planned).
1. Purpose of Business Transfer
Currently, Takara Bio’s Medium-Term Management Plan 2020 started in 2017 aims to promote threebusinesses: Bioindustry, Gene Therapy, and AgriBio Businesses, to enhance Takara Bio’s presence as a global
enterprise and regenerative medicine products company, and to achieve prodigious growth.
Under this circumstance, our Mushroom Business Department totally operates the Group’s Mushroombusiness, pursuing the business with a unification system of production and sales by our affiliated companies,
Mizuho Norin., Ltd. (Kyotamba-cho Kyoto; Production and sales of Honshimeji (perishable/frozen) andHatakeshimeji) and KINOKO CENTER KIN INC. (Kin-cho Okinawa; Production and sales of Bunashimeji).
Through activities based on recent progress in the business environment, it is considerably more important infulfilling “selection and concentration” in business operation with the aim of achieving the Medium-Term
Management Plan and creating high corporate value. With this background, Takara Bio has been seeking a company
to continue the business manufacturing and selling the mushrooms with utmost use of corporate resource accumulated.
As a result of discussion and negotiations about the transfer of Group’s mushroom business (including all sharesof Mizuho Norin Co., Ltd. and KINOKO CENTER KIN INC. owned by Takara Bio) with Yukiguni Maitake having
Japan’s top share in the Maitake mushroom market and expanding the production and sales for various mushrooms,
Takara Bio has decided to implement a business transfer.
2. Summary of Business Transfer(1) Outline of Mushroom BusinessDevelopment/production/sales and licensing of mushroom (Honshimeji (perishable/frozen), Hatakeshimeji,Bunashimeji) and sales of medium stimulator, etc.
(2) Subject to Transfer
・All shares of Mizuho Norin Co., Ltd owned by Takara Bio.
・All shares of KINOKO CENTER KIN INC owned by Takara Bio.
・Intellectual property relating to Mushroom business owned by Takara Bio1

(3) Business Results for Mushroom ended March 31, 2018
Consolidated Results ended
Mushroom Business (a)March 31, 2018 (b)Net sales
1,558
32,312
Operating income
33
3,555

3. Outlines of Successor CompanyCompany Name
（１）
（２）

Head Office（３）

Representative（４）

Business Description

（５）
（６）

Paid-in Capital
Establishment
Major shareholder andShareholding Ratio

（７）

（８）

Relationship between
companies concerned

4. Schedule
（１）
（２）
（３）

(millions of yen)
Ratio (a/b)
4.8％
0.9％

Yukiguni Maitake Co., Ltd
89 Yokawa, Minamiuonuma-shi,
Niigata Prefecture 949-6695, JAPANIwao Ashikaga, President
Production and sales of Maitake mushroom, Eringi mushroom,
Bunashimeji Mushroom, cut vegetables, and processed mushrooms
and health foods.
100 million yenFebruary 1982
Bain Capital Snow Hong Kong, Limited (51.0%), SHINMEI Co.,
LTD. (49.0%)
Capital relationship
Not applicable
Personnel relationship
Not applicable
Business relationship
Not applicable
Applicability to related companies
Not applicable

Resolution of Board of Directors
Agreement Conclusion
Business Transfer（planned）

December 17, 2018
December 17, 2018
March 1, 2019

Because of the business transfer not specified in Article 467, Paragraph 1(2) of the Companies Act, important partial
transfer of business and whole or partial transfer of the subsidiary’s shares and equities, it will be implementedwithout obtaining the approval of a general meeting of shareholders.
5.

Accounting Overview and Future Outlook

The impact of the business transfer on the consolidated financial results for the fiscal year ending March 31, 2019 is
expected to be immaterial. Also, the impact of business transfer on the consolidated financial results for the next
fiscal year would be reflected in consolidated financial results forecast for the fiscal year ending March 31, 2020
disclosed at a time of announcement of financial results ending March 31, 2019.
(Reference)(millions of yen)
Net salesOperating income

Ordinary income

Net income attributableto owners of the parent

FY2019 Forecast

35,800

5,000

5,200

3,100

FY2018 Actual

32,312

3,555

3,861

2,335

Financial forecast for the fiscal year ending March 31, 2019 (announced on November 6) and financial result forprevious fiscal year.

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