The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)

Consolidated Financial Statements for the Second Quarter Ended September 30, 2019
FY2020 (April 1, 2019 - March 31, 2020) [UNAUDITED]
November 12, 2019
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
November 13, 2019

Company name:
Stock exchange listings:
Code number:
URL:
Company representative:
Contact:

Scheduled date of quarterly statement filing:
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.
1. Results for the six months ended September 30, 2019 (Apr. 1, 2019 – Sep. 30, 2019)(1) Consolidated operating results(Percentages indicate changes from the same period of the previous fiscal year.)Six months ended
Sep. 30, 2019

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(Millions of yen)
16,450
3,035
2,961
2,075
17.23
－
1,182

(2) Consolidated financial position

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

Six months ended
Sep. 30, 2018

(%)

(5.3)
15.7
10.9
20.6

(Millions of yen)
17,370
2,623
2,669
1,720

23.0
280.9
248.5
468.5

39.2%

14.29
－
849

－%

As of Sep. 30, 2019
(Millions of yen)

As of Mar. 31, 2019
(Millions of yen)

70,83764,55891.0
535.3964,46871,04064,09590.1
531.5764,0092. Dividends
Year ended
Mar. 31, 2019

Annual dividends per share in yen
Year ending
Year ending
Mar. 31, 2020
Mar. 31, 2020 (Forecast)First quarter end－－
Second quarter end
0.00
0.00
Third quarter end－
Year end
7.00
Annual7.00
Note: No revision of dividend payment forecast since the most recently announced payment forecast.

- 1 -

－

8.00
8.00

The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)
3. Forecast for the year ending March 31, 2020 (Apr. 1, 2019 – Mar. 31, 2020)(Percentages indicated changes from the same period of the previous fiscal year.)Year ending Mar. 31, 2020

(Millions of yen)
33,900
6,200
6,350
4,250
35.29

Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
Net income per share (in yen)
Note: Revision of financial forecast since the most recently announced payment forecast: Yes.
※

(%)
(5.4)
13.5
12.1
16.2

Others(1) Changes in subsidiaries during the six months ended September 30, 2019
(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： Yes
2) Changes other than ones based on revisions of accounting standard： No
3) Changes in accounting estimates： No4) Restatement： No
For details, please refer to “2. Consolidated Quarterly Financial Statements and Primary Notes (4) Notes toConsolidated Quarterly Financial Statements (Changes in Accounting Policies) on page 9 of the attached document”.
(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, 2019
As of March 31, 2019
120,415,600
2) Number of treasury stocks at year end－
As of September 30, 2019－
As of March 31, 20193) Average number of outstanding shares
120,415,600
As of September 30, 2019
120,415,600
As of September 30, 2018

※ 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 for the six months ended September 30, 2019 (4) Qualitative Information Regarding Consolidated Forecasts, on page 3of the attached document.

- 2 -The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)
Contents of the attached document
1. Qualitative Information for the six months ended September 30, 2019…………………………...........……………………
2(1) Overview of Financial Results……………………………………………………….………….………….…………......
2(2) Overview of Financial Position………………………………………………...…………………………...……..............
2(3) Overview of Cash Flows…………………………………………………………….…………………………….……....
3(4) Qualitative Information Regarding Consolidated Forecasts………………………………………………………………
3
2. Consolidated Quarterly Financial Statements and Primary Notes…………………………………………………………….
4(1) Consolidated Quarterly Balance Sheets…………………………………………………………………………………...
4(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income…….
6(Consolidated Quarterly Statements of Income) …………………………………………………………………........... 6(For the six months ended September 30, 2019)(Consolidated Quarterly Statements of Comprehensive Income) ………………………………………………………
7(For the six months ended September 30, 2019)(3) Consolidated Quarterly Statements of Cash Flows………………………………………………………………………..
8(4) Notes to Consolidated Quarterly Financial Statements…………………………………………………………………… 9(Notes on Premise of Going Concern) …………………………………………………………………………………..
9(Notes in case of Changes in Marked Amount of Shareholders’ Equity)………………………………………………..
9(Changes in Accounting Policies)…………………………………………………………………………………..……
9(Segment Information) ………………………………………………………………………………………………….. 10
3. Supplementary Information ………………………………………………………………………………………………….. 11(1) Trends in Key Management Indicators…………………………………………………………………………………… 11(2) Comparative Consolidated Statement of Income ………………………………………………………………………… 12(3) Comparative Statement of Income Relating to Consolidated Earnings Forecast………………………………………… 13- 3 -The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)
1. Overview of Financial Results for the six months ended September 30, 2019(1) Overview of Financial Results
In the six months ended September 30, 2019, the Japanese economy continues to be unpredictable due to the protracted trade
friction issue in the U.S. and China, upsurge of geopolitical risks and others, in addition to weakening export and production andstandstill economy growth.
Under these circumstances, facing the last year of the three-year Takara Bio’s Medium-Term Management Plan FY2020 started
in FY2018, the Takara Bio Company (the Company) made the efforts toward the overall policy to enhance our presence as a global
enterprise and regenerative medical product company, and achieve prodigious growth.
As a result, overall net sales in the six months ended September 30, 2019 decreased 5.3% year on year to ¥16,450 million, due
to a decrease in sales of scientific instruments and influence of business transfers related to functional food and mushroom in the
AgriBio Business Unit in the previous fiscal year despite contributions from sales for research reagents and contracted services
exceeding those of the same period of the previous fiscal year. Cost of sales decreased 13.2% year on year to ¥6,121 million due toa decrease of cost percentage from change of sales composition by item and others, and gross profit increased 0.1% year on yearto ¥10,329 million. Selling, general and administrative (SG&A) expenses decreased 5.2% year on year to ¥7,293 million due to thedecrease in R&D expenses, and the Company recorded operating income up 15.7% year on year to ¥3,035 million.
Accompanied with the increase in operating income, ordinary income increased 10.9% to ¥2,961 million, income before income
taxes and others increased 21.1% year on year to ¥2,950 million, and net income attributable to owners of the parent increased
20.6% year on year to ¥2,075 million.
The statuses of the Company business segments are as follows.
Bioindustry Business
Given the ever-widening activities of biotechnology R&D, the Company has positioned 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, 2019, sales of scientific instruments decreased year on year, but sales of research reagentsand contracted service increased year on year.
As a result of the above, sales to external customers for this business increased 0.6% year on year to ¥14,406 million, and grossprofit increased 3.6% year on year to ¥8,613 million due to a decrease of cost percentage from change of sales composition by itemand others. SG&A expenses increased 0.3% year on year to ¥5,741 million due to the increase in personnel expenses, but theCompany recorded operating income up 11.0% year on year to ¥2,872 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 C-REV and the engineered T cell therapy utilizing the Company’s original technologies
such as the RetroNectin method for a high efficiency gene transduction; the RetroNectin expansion-culture system for ahigh efficient expansion for lymphocytes; as well as siTCR TM technology.
In the six months ended September 30, 2019, 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 investigational products based on the agreement weregenerated, but the total sales decreased year on year.
As a result, net sales to external customers for this business decreased 4.7% year on year to ¥2,044 million, and gross profit
decreased 7.9% year on year ¥1,715 million. However, SG&A expenses decreased 35.6% year on year to ¥427 million due todecrease in R&D expenses. Accordingly, operating income increased 7.5% year on year to ¥1,287 million.
(2) Overview of Financial Position
In the six months ended September 30, 2019, total assets were ¥70,837 million, a decrease of ¥203 million compared with that at
the end of the previous fiscal year. This primarily resulted from increases in buildings and structures of ¥5,014 million and cash
and deposits of ¥1,097 million despite decreases in construction in progress of ¥3,233 million and notes and accounts receivabletrade of ¥3,000 million.
Total liabilities were ¥6,278 million, a decrease of ¥666 million compared with that at the end of the previous fiscal year. This
primarily resulted from a decrease of ¥691 million in current liabilities and others.
Total net assets stood at ¥64,558 million, an increase of ¥462 million compared with that at the end of the previous fiscal year.
The main factor was an increase of ¥1,355 million in retained earnings despite a decrease of ¥908 million in foreign currencytranslation adjustment.

- 2 -The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)(3) Overview of Cash FlowsNet cash provided by operating activities was ¥4,709 million, up by ¥996 million compared with the previous fiscal year. This wasprimarily due to increases of ¥1,754 million in revenue from a decrease in notes and accounts receivable-trade and ¥513 million inincome before income taxes and others despite an increase of ¥1,073 million in expenditures from a decrease in other current
liabilities.
Net cash provided by investing activities was ¥2,283 million, an increase of ¥479 million. This was primarily due to a decreaseof ¥1,342 million in proceeds from time deposits and increase of ¥1,123 million in purchase of property, plant and equipment andintangible assets, in addition to the elimination of ¥1,888 million in payments for time deposits.
Net cash used in financing activities was ¥884 million, an increase of ¥344 million compared with the previous fiscal year. Thiswas primarily because of an increase of ¥300 million in cash dividends paid.
As a result of the above, cash and cash equivalents at the period ended September 30, 2019, including the effect of exchange ratechange on cash and cash equivalents, stood at ¥10,676 million, up by ¥1,212 million from the previous fiscal year-end.
(4) Qualitative Information Regarding Consolidated Forecasts
As for consolidated financial forecast for FY2020, the Company has revised the financial forecast disclosed on May 14, 2019,considering results for the six months ended September 30, 2019 and recent progress in our business.
Net sales in Bioindustry business and Gene Therapy business remains 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. The Company has downwardly
revised ordinary income due to occurrence of foreign exchange losses, but extraordinary loss and income tax would be dropped,
and thereby net income attributable to owners of the parent would be left unchanged as a result of a prospect.
For a comparison between revised forecasts for consolidated results, previous period results, and previous forecasts, please refer
to “Comparative Statement of Income Relating to Consolidated Earnings Forecasts” on page 13.

- 3 -The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)
2. Consolidated Quarterly Financial Statements and Primary Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
As of Mar. 31, 2019
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
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
LandConstruction in progress
Others
Accumulated depreciation
Others, net
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 non-current assets
Total assets- 4 -As of Sep. 30, 201917,033
8,604
2,000
4,523
706
1,506
941
(41)
35,275

18,131
5,604
2,000
4,369
1,081
1,682
1,279
(40)
34,108

11,775(5,435)6,340
5,510(3,745)
1,764
6,890(4,588)
2,302
6,213
4,784
15
(15)
－
21,404

16,638(5,282)
11,3555,000(3,150)1,850
7,115(4,906)
2,209
6,111
1,550
1,000
(65)
934
24,011

7,598
5,029
12,628

7,136
4,607
11,744

1,732
1,732
35,76571,040972
972
36,72870,837

The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)(Millions of yen)
As of Sep. 30, 2019

As of Mar. 31, 2019
Liabilities
Current liabilities
Notes and accounts payable-trade
Accrued income taxes
Provision
Other
Total current liabilities
Non-current liabilities
Net defined benefit liability
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

- 5 -

1,536
391
593
3,495
6,017

984
475
545
2,804
4,810

667
260
927
6,945

693
774
1,468
6,278

14,96532,893
15,401
63,26014,96532,893
16,75664,615

964
(215)
749
85
64,09571,040

56
(202)
(146)
89
64,55870,837

The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)(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, 2019)(Millions of yen)Six months ended
Sep. 30, 2019

Six months ended
Sep. 30, 2018
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
Rent of Real estate
Other
Total non-operating income
Non-operating expenses
Foreign exchange losses
Real estate leasing expense
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss due to disaster
Impairment loss
Loss on sale of investment securities
Total extraordinary losses
Income 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 -17,370
7,049
10,321

16,450
6,121
10,329

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

1,957
89
1,858
267
3,121
7,293
3,035

43
45
9
98

59
53
17
130

24
20
7
52
2,669

176
17
9
203
2,961

0
0

0
0

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

9
－
－
2
12
2,950
665
205
870
2,080
4
2,075

The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)(Consolidated Quarterly Statements of Comprehensive Income)(For the six months ended September 30, 2019)(Millions of yen)Six months ended
Sep. 30, 2019

Six months ended
Sep. 30, 2018
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
Non-controlling interest

- 7 -

1,717

2,080

(882)
14
(867)
849

(909)
12
(897)
1,182

861
(11)

1,179
3

The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)Six months ended
Sep. 30, 2018
Net cash provided by (used in) operating activities
Income 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
Increase (decrease) in net defined benefit liability
Interest income
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
SubtotalInterest and dividend income received
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 and redemption of securities
Purchase of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Purchase of other depreciable assets
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
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, 2019
2,436
1,336
41
82
247
4
224
10
(43)
62
128

2,950
1,352
－
65
250
0
(39)
27
(59)
9
－

1,148

2,903

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

(546)
(500)
(1,239)
88
5,261
63
(615)
4,709

(3,938)3,442(2,000)2,000(2,049)2,100(2,000)2,000(1,264)(2,387)

1

100

(46)
1
(1,803)(47)
0(2,283)

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

(841)
(43)
(884)
(329)
1,212
9,464
10,676

The original disclosure in Japanese was released on November 12, 2019 at 15:00 (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.
(Change in Accounting Policies)(Adoption of ASU2014-09 “Revenue from Contracts with Customers”)
The overseas subsidiaries which adopt U.S. GAAP adopted ASU2014-09 “Revenue from Contracts with Customers” (ASU201409) from the beginning of the year ending March 31, 2020. The Company adopts a method to recognize the cumulative effect of
ASU2014-09 adoption, which is recognized as a transitional measure, on the initial date of adoption.
Due to the adoption of ASU-2019-09, the revenue is recognized at the time the promised goods or services are transferred tocustomers, in an amount that reflects the consideration expected to be received in the exchange for those goods or services.
The impact on consolidated quarterly financial statement for the six months ended September 30, 2019 is immaterial.
(Adoption of IFRS16 “Leases”)
The overseas subsidiaries which adopt the International Financial reporting Standards (“IFRS”) adopted IFRS16 “Leases”(IFRS16) from the beginning of the year ending March 31, 2020. The Company adopts a method to recognize the cumulative
effect of IFRS16 “Leases” adoption, which is recognized as a transitional measure, on the initial date of adoption.
Due to the adoption of IFRS16, the Company principally recognizes assets and liabilities for all leases as a lessee. Also, theland-use rights stated formerly in “Investments and other assets” has been classified as right-of -use assets.
Accordingly, increases by ¥608 million in “Other, net” for Property, plant and equipment, by ¥61 million in “Other” for current
liabilities, and by ¥78 million in “Other” for Non-current liabilities, and decrease by ¥468 million in “Investments and otherassets” have been allocated.
The impact on profit and loss for the six months ended September 30, 2019 is immaterial.

9The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)(Segment Information)
I. Equivalent period of previous fiscal year (From Apr. 1, 2018, to Sep. 30, 2018)
1. Net sales and income (loss) by reportable segment(Millions of yen)Amountrecognized in
Adjustment
consolidated(Note: 1) quarterly financial
statements(Note: 2)

Reportable segment

Net sales
External customers
Corporate
Total

Total

Bioindustry

Gene
Therapy

AgriBio

14,316
－

2,144
－

909
－

17,370－－－17,370－14,316

2,144

909

17,370－17,370

Segment income (loss)
2,588
(85)
3,701
(1,078)2,623
1,198
Notes: 1. The adjustment for segment income (loss) 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. Information about impairment loss for non-current assets and goodwill by reportable segment(Significant impairment loss concerning non-current assets)
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, 2019.
(Significant changes to the amount of goodwill)
No items to report.
II. Six months ended September 30, 2019 (From Apr. 1, 2019, to Sep. 30, 2019)
1. Net sales and income (loss) by reportable segment(Millions of yen)
Reportable segment

Net sales
External customers
Corporate
Total

Total

Amount recognizedin consolidated
Adjustment
quarterly financial(Note: 1)statements(Note: 2)

Bioindustry

Gene
Therapy

14,406－2,044－

16,450－－－16,450－14,4062,044

16,450－16,450

Segment income
2,872
1,287
4,160
(1,124)
3,035
Notes: 1. The adjustment for segment income was a loss of ¥1,124 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 has been adjusted to the operating income of consolidated quarterly financial statements.
2. Information about impairment loss for non-current assets and goodwill by reportable segment(Significant impairment loss concerning non-current assets)
No items to report.
(Significant changes to the amount of goodwill)
No items to report.
3. Matters related to changes and others by reportable segment
The reportable segment “AgriBio Business” has been eliminated from the three months ended June 30, 2019 due to thebusiness transfers related to functional food and mushroom in AgriBio Business Unit for the previous fiscal year.
10The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)
3. Supplementary Information(1) Trends in Key Management Indicators1). Cash Flow
(Millions of yen)Six months ended
Six months ended
Year ended Mar. 31, 2019
Sep. 30, 2018
Sep. 30, 2019
Term
(Apr. 1, 2018 - Mar. 31, 2019)(Apr. 1, 2018 - Sep. 30, 2018) (Apr. 1, 2019 - Sep. 30, 2019)
Net cash provided by (used in)

3,713

4,709

5,783

Net cash provided by (used in)investing activities(1,803)(2,283)(5,576)

Net cash provided by (used in)financing activities

(540)

(884)

(541)

operating activities

2). Net Sales by Region(Millions of yen)Six months ended
Six months ended
Year ended Mar. 31, 2019
Sep. 30, 2018
Sep. 30, 2019
(Apr. 1, 2018 - Mar. 31, 2019)(Apr. 1, 2018 – Sep. 30, 2018) (Apr. 1, 2019 - Sep. 30, 2019)

Japan

7,652

6,816

16,101

U.S.

4,040

3,954

7,945

China

3,001

3,023

6,227

991

918

1,994

1,557

1,596

3,328

Asia excluding Japan and
China
Europe
Other
Total

127

141

244

17,37016,45035,8413). R&D Expenses by Reportable Segment
Six months ended
Sep. 30, 2018
(Apr. 1, 2018 - Sep. 30, 2018)(Millions of yen)Six months ended
Year ended Mar. 31, 2019
Sep. 30, 2019
(Apr. 1, 2018 - Mar. 31, 2019)(Apr. 1, 2019 - Sep. 30, 2019)

Bioindustry

1,353

1,382

2,723

Gene therapy

655

392

1,391

Corporate

95

83

222

2,104

1,858

4,337

Total

- 11 -

The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)(2) Comparative Consolidated Statement of Income
Six months ended
Sep. 30, 2018
Actual（Net Sales）

Six months ended
Sep. 30, 2019
Actual(Rounded down to one million yen)
Year on year
ChangeYear on year
Ratio

Research reagents
Scientific instruments
Contracted services
Other
Bioindustry Total
Gene therapy
Other (Former AgriBio)

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

11,613
620
1,961
210
14,406
2,044
－

464
(770)
406
(10)
90
(100)
(909)

104.2%
44.6%
126.1%
95.4%
100.6%
95.3%－

Total net sales

17,37016,450

(919)

94.7%

17,37016,450

(919)

94.7%

(Operating Income and Loss)
Net sales
Cost of sales

7,049

6,121

(927)

86.8%

Gross profits

10,321

10,3297100.1%

SG&A expenses

7,697

7,293

(404)

94.8%

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

339
30
344
2,104
4,719
159

186
33
299
1,858
4,766
149

(153)
3
(44)
(245)
47
(10)

54.8%
110.0%
87.0%
88.3%
101.0%
93.5%

Operating income

2,623

3,035

411

115.7%

98

130

31

131.9%(Non-operating Income and Expenses)
Non-operating income
Non-operating expenses
Ordinary income

52

203

151

387.2%

2,669

2,961

292

110.9%

0

0

(0)

95.7%

233

12

(221)

5.2%

2,436

2,950

513

121.1%

718

870

151

121.1%

1,717

2,080

362

121.1%(Extraordinary Income & Losses)
Extraordinary income
Extraordinary losses
Income before income taxes and others
Income taxes
Net Income
Net income (loss) attributable to non-controllinginterests
Net income attributable to owners of the parent
Depreciation and amortization (Property, plant andequipment and intangible assets)
Amortization of goodwill

(2)

4

7

－

1,720

2,075

354

120.6%

1,336

1,352

15

101.2%

247

250

3

101.3%

Year on year
ChangeYear on year
Ratio
111.0%
107.5%－－
115.7%

Profit and loss by business segment (Operating income)Six months ended
Sep. 30, 2018
ActualBioindustry
Gene therapy
Other (Former AgriBio)
Corporate
Total- 12 -

Six months ended
Sep. 30, 2019
Actual

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

2,872
1,287
－
(1,124)

283
89
85
(46)

2,623

3,035

411

The original disclosure in Japanese was released on November 12, 2019 at 15:00 (GMT+8)(3) Comparative statement of income relating to consolidated earnings forecasts（Net Sales）

Year ended
Mar. 31, 2019
ActualYear ending
Mar. 31, 2020
Previous forecast

Year ending
Mar. 31, 2020
Current forecast

Year onyear
Change(Rounded down to one million yen)
Year onPrevious
Previous
year
forecast
forecast
Ratio
ChangeRatio

Research reagents

23,601

24,99024,147546

102.3%

(843)

96.6%

Scientific instruments

2,570

2,108

1,255

(1,315)

48.8%

(853)

59.5%

Contracted services

4,954

5,800

5,748

794

116.0%

(52)

99.1%

Other

449

403

380

(69)

84.6%

(23)

94.2%

Bioindustry Total

31,57533,302

31,531

(44)

99.9%

(1,771)

94.7%

Gene therapy

2,443

2,697

2,368

(74)

96.9%

(328)

87.8%

Other (Former AgriBio)

1,822

－

－

(1,822)－－－

Total Net Sales

35,841

36,00033,900(1,941)

94.6%(2,100)94.2%

Net Sales

35,841

36,00033,900(1,941)

94.6%(2,100)94.2%

Cost of sales

15,155

14,053

13,050(2,104)86.1%(1,002)92.9%

Gross profits

20,68521,946

20,849163

100.8%(1,097)

95.0%

SG&A expenses(Operating Income and Loss)

15,221

15,746

14,649

(572)

96.2%

(1,097)93.0%

Transportation expenses

492

500

481

(10)

97.9%

(18)

96.2%

Advertising expenses

56

86

68

12

121.5%

(17)

79.6%

Promotion expenses

703

674

612

(90)

87.1%

(61)

90.8%

R&D expenses

4,337

4,292

3,914

(422)

90.2%

(377)

91.2%

Administrative expenses, other
Enterprise taxes(external standards taxation)

9,361

9,896

9,272

(89)

99.0%

(624)

93.7%

270

296

299

29

110.9%

3

101.2%
100.0%

Operating income

5,463

6,200

6,200

736

113.5%

－

307

320

348

41

113.4%

27

108.7%(Non-operating Income and Expenses)
Non-operating income
Non-operating expenses

105

70

198

92

187.3%

127

281.5%

5,665

6,450

6,350

684

112.1%

(100)

98.4%

Extraordinary income

146

0

0

(146)

0.3%

0

197.7%

Extraordinary losses

Ordinary income(Extraordinary Income & Losses)

988

299

252

(735)

25.5%

(47)

84.2%

Income before income taxes andminority interests

4,823

6,150

6,098

1,274

126.4%

(52)

99.1%

Income taxes

1,149

1,887

1,837

687

159.8%

(50)

97.3%

Net Income

3,673

4,262

4,260

586

116.0%(2)

99.9%

Net income (loss) attributable tonon-controlling interests
Net income attributable toowners of the parent

15

12

10

(5)

64.7%

(2)

82.1%

3,657

4,250

4,250

592

116.2%－

100.0%

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

2,691

2,957

2,891

200

107.5%

(65)

97.8%

502

491

493

(9)

98.1%

1

100.3%

Year ending
Mar. 31, 2020
Previous forecast

Year ending
Mar. 31, 2020
Current forecast

Year onyear
ChangeYear onyear
Ratio

Previous
forecast
ChangePrevious
forecast
Ratio

Amortization of goodwill

Profit and loss by business segment (Operating income)Year ended
Mar. 31, 2019
ActualBioindustry

7,100

7,750

7,490

389

105.5%

(260)

96.6%

Gene therapy

506

996

964

458

190.5%

(31)

96.9%

Other (Former AgriBio)

(29)

－

－

29

－

－

－

Corporate(2,114)(2,546)(2,255)

(141)

－

291

－

Total

5,463

6,200

6,200

736

113.5%－

100.0%- 13 -