Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

August 8, 2023

Consolidated Financial Results
for the Three Months Ended June 30, 2023
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

Takara Bio Inc.
Tokyo Stock Exchange4974
https://www.takara-bio.co.jp
Koichi Nakao, President & CEO

Takuya Kakemi, Executive Officer, Head of Corporate Management Division

Telephone:+81-775-565-6970
Scheduled date to file quarterly securities report:
August. 10, 2023
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended Jun. 30, 2023 (from Apr. 1, 2023 to Jun. 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Three months ended

Operating profit

Millions of yen%

Jun. 30, 2023

9,176

Jun. 30, 2022

14,102

Note: Comprehensive income(Percentages indicate year-on-year changes.)

Millions of yen%(34.9)

423

(7.7)

4,537

Millions of yen%(90.7)

509(46.6)

4,593

For the three months ended Jun. 30, 2023:
For the three months ended Jun. 30, 2022:

Basic earnings
per share

Profit attributable toowners of parent

Ordinary profit

Millions of yen%(88.9)

319(91.8)(46.5)

3,907(35.1)¥810 million¥6,334 million(87.2%)(22.8%)

Diluted earnings
per share

Three months ended

Yen

Yen

Jun. 30, 2023

2.65

-

Jun. 30, 2022

32.45

-

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

yenJun. 30, 2023

120,662108,20789.5

896.53Mar. 31, 2023

129,202112,45486.9

931.93

Reference:

EquityAs of Jun. 30, 2023:
As of Mar. 31, 2023:¥107,956 million¥112,219 million

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

-

0.00

-

42.00

42.00

0.00

-

17.00

17.00

Fiscal year ended
Mar. 31, 2023
Fiscal year ending
Mar. 31, 2024

Fiscal year-end

Total

-

Fiscal year ending
Mar. 31, 2024
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial forecast for the year ending March 31, 2024 (Apr. 1, 2023 – Mar. 31, 2024)(Percentages indicate year-on-year changes for the full year and year-on-year changes for the quarter.)

Net sales
Millions of yen

Six months ending
Sep. 30, 2023
Year ending Mar.
31, 2024
Note:*

19,40053,300Operating profit% Millions of yen

%

1,100

(89.9)(40.5)(31.8)

8,000

Profit attributable toowners of parent

Ordinary profit(61.1)

Millions of
yen
1,170
8,200

Revisions to the financial forecast since the most recent announced: Yes%(89.3)(60.4)

Millions of
yen
650
5,500

Net income per
share

%

yen

(92.4)

5.40
45.67(65.7)

Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included: - companies (Company name)
Excluded:- companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of Jun. 30, 2023

120,415,600 shares

As of Mar. 31, 2023

120,415,600 shares(ii) Number of treasury shares at the end of the period
As of Jun. 30, 2023-

shares

As of Mar. 31, 2023-

shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended Jun. 30, 2023

120,415,600 shares

Three months ended Jun. 30, 2022

120,415,600 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants oran audit corporation.

* Comment regarding appropriate use of earnings forecasts and other special notes

Forward-looking statements contained in this document are determined by the Takara Bio Inc. (the “Company”) basedon 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, pleaserefer to “1. Overview of Financial Results (4) Explanation of Consolidated Financial Forecasts and Other Forwardlooking Statements on page 2 of the attached document.

Contents of the attached document
1. Overview of Financial Results for the Three Months Ended Jun. 30, 2023..............................................................................
2(1) Overview of Financial Results.............................................................................................................................................
2(2) Overview of Financial Position............................................................................................................................................
2(3) Overview of Cash Flows......................................................................................................................................................
2(4) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements................................................. 2
2. Consolidated Quarterly Financial Statements and Primary Notes............................................................................................. 3(1) Consolidated Quarterly Balance Sheets...............................................................................................................................
3(2) Consolidated Quarterly Statements of Profit or Loss and Consolidated Quarterly Statements of Comprehensive Income.........
5(Consolidated Quarterly Statements of Profit or Loss)...................................................................................................
5(Consolidated Quarterly Statements of Comprehensive Income)...................................................................................
6(3) Consolidated Quarterly Statements of Cash Flows..............................................................................................................
7(4) Notes to Consolidated Quarterly Financial Statements........................................................................................................
8(Notes on Premise of Going Concern)...............................................................................................................................
8(Notes in case of Changes in Marked Amount of Shareholders’ Equity)..........................................................................
8
3. Supplementary Information.......................................................................................................................................................
8(1) Trends in Key Indicators for Business Management...........................................................................................................
8(2) Comparative Consolidated Statement of Income.................................................................................................................
9(3) Comparative Statement of Income Relating to Consolidated Financial Forecasts.............................................................. 10-1-

1. Overview of Financial Results for the three months ended June 30, 2023
(1) Overview of Financial Results
The outlook for the global economy during the three months ended June 30, 2023 is uncertain due to the prolonged trade friction
between the U.S. and China, and Russia’s invasion of Ukraine. Under these circumstances, in the six-year Long-Term Management
Plan FY2026, which is the final year of FY2026, and the three-year Medium-Term Management Plan 2026, which is the final year of
FY2026, we have promoted the development of basic biotechnology-based biologics development technologies through Reagents /Instruments business and CDMO business, and have promoted initiatives aimed at becoming a global platform provider responsible
for the infrastructure of the life science industry.
For the three months ended June 30, 2023, sales of Reagents and Instruments decreased compared with the same period of theprevious fiscal year, despite year-on-year increases in CDMO and Gene Therapy. In Reagents, sales of reagents related to newCoronavirus infectious disease testing declined due to the convergence of the diseases and changes in the legal positioning. As a result,net sales decreased to ¥9,176 million (down 34.9% year-on-year). Cost of sales decreased to ¥2,683 million (down 32.5% year-onyear) due mainly to a decrease in sales. As a result, gross profit decreased to ¥6,493 million (down 35.9% year-on-year). Selling,
general and administrative (SG&A) expenses were ¥6,069 million (up 8.6% year-on-year) due to an increase in personnel expenses,
research and development (R&D) expenses, etc., and operating profit was ¥423 million (down 90.7% year-on-year).
As a result of the decrease in operating profit, ordinary profit decreased by ¥509 million (down 88.9% year-on-year), profit before
income taxes and others was ¥505 million (down 90.8% year-on-year), and net income attributable to owners of the parent was ¥319
million (down 91.8% year-on-year).
Since our group is a single segment, the disclosure by segment is omitted.
(2) Overview of Financial Position
Total assets at the end of the three months ended June 30, 2023 were ¥120,662 million, a decrease of ¥8,539 million from the end of
the previous fiscal year. This was mainly due to decreases of ¥5,840 million in cash and deposits and ¥3,154 million in notes andaccounts receivable-trade.
Total liabilities at the end of the three months ended June 30, 2023 were ¥12,454 million, a decrease of ¥4,292 million from the endof the previous fiscal year. This was mainly due to decreases of ¥2,571 million in other current liabilities and ¥1,407 million in notes
and accounts payable-trade.
Total net assets at the end of the three months ended June 30, 2023 were ¥108,207 million, a decrease of ¥4,246 million from theend of the previous fiscal year. This was mainly due to a decrease of ¥4,737 million in retained earnings, despite an increase of ¥458
million in foreign currency translation adjustment due to the yen's depreciation.
(3) Overview of Cash FlowsNet cash provided by operating activities amounted to ¥319 million, a decrease of ¥3,447 million compared with the same period of
the previous fiscal year. This was mainly due to cash inflow from a decrease in trade receivable of ¥3,215 million, depreciation andamortization of ¥1,047 million, and cash outflow from a decrease in other current liabilities of ¥2,634 million, a decrease in notes andaccounts payable-trade of ¥1,453 million.
Net cash used in investing activities amounted to ¥764 million, an increase of ¥469 million compared with the same period of theprevious fiscal year. This was mainly due to purchases of property, plant and equipment and intangible assets of ¥1,408 million,
payments into time deposits of ¥412 million, and proceeds from withdrawal of time deposits of ¥1,056 million.
Net cash used in financing activities was ¥4,911 million, mainly due to cash dividends paid of ¥4,872 million, an increase of ¥1,056
million compared with the same period of the previous fiscal year.
As a result of the above, the balance of cash and cash equivalents at the end of the three months ended June 30, 2023, including theeffect of exchange rate change on cash and cash equivalents, decreased by ¥5,239 million from the end of the previous fiscal year to¥43,818 million.
(4) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
The consolidated financial forecast for the six months ending September 30, 2023, announced in the financial results report on May
11, 2023 has been revised. For details, please refer to the "Notice Concerning Revisions to the First Half Financial Results Forecasts"
announced today (August 8, 2023).
For a comparison of the revised consolidated financial forecast with the previous fiscal year's results and the previous forecast, pleaserefer to the "Comparative Statement of Income Relating to Consolidated Financial Forecasts" on page 10.

-2-2. Consolidated Quarterly Financial Statements and Primary Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)

As of Mar. 31, 2023
AssetsCurrent asset
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
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-3-

As of Jun. 30, 2023

51,847
12,567
6,248
1,125
3,714
2,184
(118)
77,56946,007
9,413
6,541
983
3,807
2,388
(94)
69,04628,098(7,064)
21,0348,384(4,883)3,500
10,569(6,229)
4,340
8,654
2,102
1,748
(425)
1,323
40,95628,333(7,405)20,928
8,614(5,065)
3,548
10,879(6,544)
4,335
8,673
2,457
1,778
(466)
1,312
41,255

6,674
2,372
9,047

6,565
2,171
8,736

1,627
1,627
51,632
129,202

1,624
1,624
51,616
120,662(Millions of yen)
As of Mar. 31, 2023
Liabilities
Current liabilities
Notes and accounts payable-trade
Accrued income taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
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
Cumulative remeasurements of retirement
benefit
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-4-

As of Jun. 30, 2023

2,323
672
1,065
10,313
14,375

916
279
1,325
7,742
10,263

992
1,379
2,372
16,747

1,020
1,171
2,191
12,454

14,96532,89357,047104,906

14,96532,89352,309100,168

7,680

8,139

(367)

(351)

7,312

7,787

235
112,454
129,202251
108,207
120,662(2) Consolidated Quarterly Statements of Profit or Loss and Consolidated Statements of Comprehensive Income(Consolidated Statements of Profit or Loss)(Millions of yen)
Net sales
Cost of sales
Gross profit
SG&A expenses
Employees' salaries and bonuses
Retirement benefit expenses
R&D expenses
Provision of allowance
Other
Total SG&A expenses
Operating profit
Non-operating income
Interest income
Foreign exchange gains
Rent income from real estate
Other
Total non-operating income
Non-operating expense
Interest expenses
Foreign exchange losses
Rent expenses on real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary gains
Gain on sale of fixed assets
Insurance received
Total extraordinary profit
Extraordinary losses
Loss on sale and retirement of non-current
assetsOthersTotal 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

Three months ended
Jun. 30, 2022
14,102
3,977
10,124Three months ended
Jun. 30, 2023
9,176
2,683
6,493

1,363
66
1,859
265
2,032
5,586
4,537

1,451
81
2,240
218
2,077
6,069
423

30
35
12
78

42
29
38
9
119

5
2
13
1
23
4,593

7
15
10
33
509

250
652
902

1
1

5

5

10
16
5,479
875
667
1,542
3,936
28
3,907

5
505
377
(204)
172
333
13
319

-5-

(Consolidated Quarterly Statements of Comprehensive Income)(Millions of yen)Three months ended
Jun. 30, 2022
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-6-

Three months ended
Jun. 30, 2023

3,936

333

2,387
10
2,398
6,334

461
16
477
810

6,294
39

794
16

(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)Three months ended
Jun. 30, 2022

Net cash provided by (used in) operating activities
Profit before income taxes and others
Depreciation and amortization
Depreciation and amortization on other
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in retirement benefit liabilities
Interest income
Interest expenses
Loss (gain) on sale and retirement of fixed assets
Decrease (increase) in trade receivables-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in other current liabilities
Other
SubtotalInterest and dividend income received
Income expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceed from withdrawal of time deposits
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
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

5,479
979
19
132

505
1,047
24
150

(18)

(25)

251
(10)
(30)
5
(244)
5,375
(471)

253
26
(42)
7
3
3,215
(120)

(712)

(1,453)

(163)
496

(412)
1,056

(1,554)
(288)
8,912
23
(5)
(5,164)
3,766-7-

Three months ended
Jun. 30, 2023

(2,634)
(418)
541
41
(5)
(258)
319

(970)
393

(1,408)

(60)
9
(294)

(2)
(0)
(764)

1

(3,821)(33)(3,854)692(4,872)(38)(4,911)309
22,16022,469(5,239)49,05843,818117

(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 item to report.

3. Supplemental Information(1)Trends in Key Indicators for Business Management
1) Cash Flows
Three months ended
Jun. 30, 2023

(Millions of yen)
Year ended
Mar. 31, 2023

3,766
(294)
(3,854)319(764)(4,911)36,897(6,693)(4,119)Three months ended
Jun. 30, 2022

Three months ended
Jun. 30, 2023

(Millions of yen)
Year ended
Mar. 31, 2023

Three months ended
Jun. 30, 2022

(Apr. 1, 2022 – Jun. 30, 2022)

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
2) Sales Breakdown by Region

Japan
United States
China
Asia excluding Japan and China
EuropeOthers
Total(Apr. 1, 2022 – Jun. 30, 2022)

5,365
3,183
2,828
1,143
1,518
63
14,102-8-(Apr. 1, 2023 – Jun. 30, 2023) (Apr. 1, 2022– Mar. 31, 2023)(Apr. 1, 2023 – Jun. 30, 2023)

3,226
2,972
1,109
696
1,108
62
9,176

(Apr.1, 2022 – Mar. 31, 2023)

45,667
12,886
10,799
3,546
4,949
293
78,142

(2) Comparative Consolidated Statement of Income(Net sales)
Reagents
Instruments
CDMO
Gene Therapy
Total net sales(Operating profit and Loss)
Net sales
Cost of sales
Gross profit
SG & A expenses
Transportation expenses
Advertising expenses
Promotion expenses
R&D expenses
Administrative expense, other

Enterprise taxes (external
standards taxation)

Operating profit(Non-operating income andExpenses)Non-operating income
Non-operating expenses
Ordinary profit(Extraordinary income & Losses)

Extraordinary income
Extraordinary losses
Income before income
taxes and others
Income taxes
Net income

Net income (loss) attributable tonon-controlling interests

Net income attributableto owners of the parent
Depreciation andamortization (Property,
plant and equipment andintangible assets)
Amortization of goodwill

Three months ended
Jun. 30, 2022

(Rounded down to one million yen)Three months ended
Y/Y
Y/Y
Jun. 30, 2023
changeratio

12,043
267
1,291
499
14,102

6,909
220
1,366
679
9,176

14,102
3,977
10,124
5,586
150
10
131
1,859
3,345

9,176
2,683
6,493
6,069
134
11
166
2,240
3,443

89

73

4,537

(5,133)(46)75
180(4,925)(42.6%)(17.5%)
5.8%
36.1%(34.9%)

423(15)(4,114)(17.5%)

78
23
4,593

119
33
509

902
16

1
5

40
10
(4,083)

51.9%
43.8%
(88.9%)

5,479

505

1,542
3,936

172
333

(4,973)(90.8%)

28

13

3,907

(4,925)(1,294)(3,631)
483
(16)
0
34
381
98

(900)
(11)

(1,369)(3,603)(34.9%)(32.5%)(35.9%)
8.6%(10.8%)
5.9%
26.3%
20.5%
2.9%

(90.7%)(99.8%)(67.4%)(88.8%)(91.5%)

319(15)(3,588)(53.3%)

979

1,047

67

6.9%

132

150

18

13.8%

-9-

(91.8%)

(3) Comparative Statement of Income Relating to Consolidated Financial Forecasts(Rounded down to one million yen)First halfFirst half ending
ended
Previous Previous
Sep. 30, 2023
Y/Y
Y/Y
Sep. 30,
forecast
forecast
ChangeRatio
Previous Current
2023
ChangeRatio
forecast
forecast
Actual(Net sales)
18,081
Reagents
27,56515,083 (12,481) (45.3%)(2,997) (16.6%)
904
Instruments
694
492(201) (29.1%)(412) (45.6%)
2,761(13.6%)(0.4%)
CDMO
3,183
2,749
(434)
(12)
1,052
2.1%
(6.1%)
Gene Therapy
1,144
1,074
22
(69)
22,800Total Net Sales
32,587
19,400 (13,187) (40.5%)(3,400) (14.9%)(Operating profit and Loss)
22,80032,587
19,400 (13,187) (40.5%)(3,400) (14.9%)
Net sales
7,684
Cost of sales
10,562
5,928(4,633) (43.9%)(1,756) (22.9%)
15,115(38.8%)
Gross profit
22,025
13,471(8,553)(1,643) (10.9%)
13,01510.9%(4.9%)
SG & A expenses
11,154
12,371
1,217
(643)
337
(9.2%)
Transportation expenses
330
300
(30)
(37) (11.1%)
36
38.1%
Advertising expenses
2130
8(6) (18.2%)
480
7.6%
Promotion expenses
306
330
23
(150) (31.2%)
4,471
16.7%
0.6%
R&D expenses
3,853
4,498
645
27
Administrative expenses,
6,412
7,526
7,060
648
10.1%
(466)
(6.2%)
other
Enterprise taxes(external
standards
229
162
151
(77) (33.9%)(10)(6.5%)
taxation)
10,8702,100
1,100(9,770) (89.9%)(1,000) (47.6%)
Operating profit(Non-operating income andExpenses)
90
70.0%(9.6%)
Non-operating income
170
154
63
(16)
90
(0.9%)(7.1%)
Non-operating expenses
85
84
(0)
(6)
10,9552,100
1,170(9,785) (89.3%)(930) (44.3%)
Ordinary profit(Extraordinary
gains&
Losses)0
Extraordinary gains
902
11(901) (99.8%)
5
82.5%
Extraordinary losses
279(17) (65.5%)
4
Income before income
11,831
2,094
1,162 (10,669) (90.2%)(932) (44.5%)
taxes and others
880
Income taxes
3,259
497
(2,762) (84.7%)(382) (43.5%)
1,214
Net income
8,572
664
(7,907) (92.2%)(549) (45.3%)
Net
income(loss)
attributable
to
non33
14
14
(18) (55.8%)0
2.3%
controlling interests
Net income attributable
8,538
1,200
650
(7,888) (92.4%)(550) (45.8%)
to owners of parent
Depreciation
andamortization(Property,
plant and equipment andintangible assets)
Amortization of goodwill

1,962

2,182

2,206

244

12.5%

24

1.1%

280

318

307

26

9.6%

(11)

(3.6%)- 10 -