The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)

Consolidated Financial Statements for the Third Quarter Ended December 31, 2019
FY2020 (April 1, 2019 - March 31, 2020) [UNAUDITED]
February 13, 2020
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
February 14, 2020

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:－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 nine months ended December 31, 2019 (Apr. 1, 2019 – Dec. 31, 2019)(1) Consolidated operating results(Percentages indicate changes from the same period of the previous fiscal year.)Nine months ended
Dec. 31, 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)
24,558
3,879
3,896
2,708

(2) Consolidated financial position
Total assets
Net assets
Equity ratio (%)
Net assets per share (in yen)
(Reference) Equity

22.49
－
1,512

(%)

Nine months ended
Dec. 31, 2018

(%)

(5.1)
13.0
9.8
29.7

(Millions of yen)
25,888
3,432
3,549
2,088

14.3
113.4
101.4
95.4

85.2%

17.35
－
1,776

118.8%

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

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

71,83564,88890.2
538.1164,79771,04064,09590.1
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.

8.00
8.00

The original disclosure in Japanese was released on February 13, 2020 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)
34,300
6,200
6,300
3,700
30.73

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 financial forecast: Yes
※

(%)
(4.3)
13.5
11.2
1.2

Others(1) Changes in subsidiaries during the nine months ended December 31, 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 December 31, 2019
As of March 31, 2019
120,415,600
2) Number of treasury stocks at year end－
As of December 31, 2019－
As of March 31, 20193) Average number of outstanding shares
120,415,600
As of December 31, 2019
120,415,600
As of December 31, 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 tochanges in conditions that occur in the future. For information regarding the above, please refer to 1. Overview of Financial
Results for the nine months ended December 31, 2019 (4) Qualitative Information Regarding Consolidated Forecasts, on page 3of the attached document.

The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)
Contents of the attached document
1. Qualitative Information for the nine months ended December 31, 2019………………………………………………..........
(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 nine months ended December 31, 2019)(Consolidated Quarterly Statements of Comprehensive Income) ………………………………………………………
(For the nine months ended December 31, 2019)(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)………………………………………………..
(Changes in Accounting Policies)………………………………………………………………………………………
(Segment Information) …………………………………………………………………………………………………..
(Significant Subsequent Events)…………………………………………………………………………………………
3. Supplementary Information …………………………………………………………………………………………………..
(1) Trends in Key Management Indicators……………………………………………………………………………………
(2) Comparative Consolidated Statement of Income …………………………………………………………………………
(3) Comparative Statement of Income Relating to Consolidated Earnings Forecast…………………………………………

- 1 -

2
2
3
3
3
4
4
6
6
7
8
9
9
9
9
10
11
12
12
13
14

The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)
1. Overview of Financial Results for the nine months ended December 31, 2019(1) Overview of Financial Results
In the nine months ended December 31, 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 nine months ended December 31, 2019 decreased 5.1% year on year to ¥24,558 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 contract services
exceeding those of the same period of the previous fiscal year. Cost of sales decreased 10.8% year on year to ¥9,767 million due toa decrease of cost percentage from change of sales composition by item and others, and gross profit decreased 1.0% year on yearto ¥14,791 million. Selling, general and administrative (SG&A) expenses decreased 5.2% year on year to ¥10,911 million due tothe decrease in R&D expenses, and the Company recorded operating income up 13.0% year on year to ¥3,879 million.
Accompanied with the increase in operating income, ordinary income increased 9.8% to ¥3,896 million, income before income
taxes and others increased 43.6% year on year to ¥3,883 million, and net income attributable to owners of the parent increased
29.7% year on year to ¥2,708 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 nine months ended December 31, 2019, sales of scientific instruments decreased year on year, but sales of research reagentsand contract service increased year on year.
As a result of the above, sales to external customers for this business increased 1.8% year on year to ¥22,388 million, and grossprofit increased 3.3% year on year to ¥13,106 million due to a decrease of cost percentage from change of sales composition byitem and others. SG&A expenses increased 1.0% year on year to ¥8,640 million due to the increase in R&D expenses, but theCompany recorded operating income up 7.9% year on year to ¥4,465 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 nine months ended December 31, 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 5.8% year on year to ¥2,170 million, and gross profit
decreased 10.7% year on year to ¥1,684 million. However, SG&A expenses decreased 39.3% year on year to ¥607 million due todecrease in R&D expenses. Accordingly, operating income increased 21.6% year on year to ¥1,077 million.
(2) Overview of Financial Position
In the nine months ended December 31, 2019, total assets were ¥71,835 million, an increase of ¥794 million compared with that at
the end of the previous fiscal year. This primarily resulted from increases in property, plant and equipment of ¥2,859 million despite
decreases in notes and accounts receivable-trade of ¥1,865 million.
Total liabilities were ¥6,947 million, an increase of ¥1 million compared with that at the end of the previous fiscal year.
Total net assets stood at ¥64,888 million, an increase of ¥793 million compared with that at the end of the previous fiscal year.
The main factor was an increase of ¥1,988 million in retained earnings despite a decrease of ¥1,220 million in foreign currencytranslation adjustment.

- 2 -The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)(3) Overview of Cash FlowsNet cash provided by operating activities was ¥4,688 million, up by ¥540 million compared with the previous fiscal year. This wasprimarily due to an increases of ¥1,179 million in income before income taxes and others and a decrease of ¥1,125 million in
expenditures from increase in inventories despite an increase of ¥942 million in expenditures from a decrease in other current
liabilities and a decrease of ¥696 million in impairment loss.
Net cash provided by investing activities was ¥2,581 million, with expenses decreasing by ¥964 million compared with theprevious year. This was primarily due to a decrease of ¥1,966 million in payments for time deposits despite the elimination of ¥820
million in proceeds from time deposits.
Net cash used in financing activities was ¥929 million, with expenses increasing by ¥388 million compared with the previous
fiscal year. This was 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 December 31, 2019, including the effect of exchange ratechange on cash and cash equivalents, stood at ¥10,241 million, up by ¥777 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 November 12, 2019,considering results for the nine months ended December 31, 2019 and recent progress in our business.
Net sales in scientific instruments and Gene Therapy Business would be lower than anticipated, but main research reagents andcontract service is recording the solid sales. Accordingly, the Company upwardly revised the previous forecast on the whole.
As for profit, SG&A expenses would be higher than expected due to increase in personnel expenses despite an exceeding the planfor gross profit due to the increasing net sales, and thereby operating income would be left unchanged as announced previously.
Also, the Company has downwardly revised ordinary income due to decrease in non-operating income and increase in non-current
assets-related loss in net income attributable to owners of the parent and others.
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 14.

- 3 -The original disclosure in Japanese was released on February 13, 2020 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 Dec. 31, 201917,033
8,604
2,000
4,523
706
1,506
941
(41)
35,275

17,283
6,739
2,000
4,789
1,126
1,793
1,449
(43)
35,137

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

16,573(5,386)
11,187
6,603(3,165)3,438
7,597(5,053)
2,543
6,109
87
991
(94)
897
24,263

7,598
5,029
12,628

7,027
4,471
11,4981,732
1,732
35,76571,040934
934
36,697
71,835

The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)(Millions of yen)
As of Dec. 31, 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

1,066
378
446
3,613
5,504

667
260
927
6,945

696
745
1,442
6,947

14,96532,893
15,401
63,26014,96532,893
17,39065,249

964
(215)
749
85
64,09571,040

(255)
(196)
(452)
91
64,88871,835

The original disclosure in Japanese was released on February 13, 2020 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 nine months ended December 31, 2019)(Millions of yen)
Nine months ended
Dec. 31, 2019

Nine months ended
Dec. 31, 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
Interest expenses
Foreign exchange losses
Real estate leasing expense
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Insurance proceeds due to disaster
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss
Loss due to disaster
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 -25,888
10,947
14,94024,5589,767
14,791

3,062
130
3,164
250
4,899
11,507
3,432

3,045
128
2,812
224
4,701
10,911
3,879

63
67
70
201

98
82
32
212

－
45
28
11
84
3,549

2
153
26
13
195
3,896

0
54
55

0
－
0

72
696
131
－
900
2,703
1,107
(494)
612
2,091
3
2,088

11
－
－
2
13
3,883
935
229
1,165
2,717
8
2,708

The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)(Consolidated Quarterly Statements of Comprehensive Income)(For the nine months ended December 31, 2019)(Millions of yen)
Nine months ended
Dec. 31, 2019

Nine months ended
Dec. 31, 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 -

2,091

2,717

(335)
19
(315)
1,776

(1,222)18(1,204)
1,512

1,784
(7)

1,506
5

The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)

Nine months ended
Dec. 31, 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
Interest expense
Loss (gain) on sales and retirement of non-current
assetsDisaster loss
Decrease (increase) in notes and accounts receivabletrade
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 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
Proceeds from business transfer
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 -Nine months ended
Dec. 31, 2019
2,703
2,014
696
118
374
4
168
10
(63)
－

3,883
2,102
－
89
372
3
(133)
30
(98)
2

71

11

131

－

926

1,686

(2,326)(1,201)

308

(382)

(97)
(63)
4,978
63
－
(894)
4,147

(1,039)
233
5,560
98
(2)
(968)
4,688

(6,930)6,173(2,000)2,000(4,964)5,352(2,000)2,000(3,242)(3,011)

6

99

(84)
525
7
(3,546)(57)－(0)(2,581)

(541)
－
(541)

(841)
(88)
(929)

(33)

(399)

26
10,051
10,077777
9,464
10,241

The original disclosure in Japanese was released on February 13, 2020 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 this fiscal year. 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 nine months of this fiscal year 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 this fiscal year. 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 ¥577 million in “Other, net” for Property, plant and equipment, by ¥75 million in “Other” for current
liabilities, and by ¥50 million in “Other” for Non-current liabilities, and decreases by ¥3 million in “Other” for current assets
and by ¥448 million in “Investments and other assets” have been allocated.
The impact on profit and loss for the nine months of this fiscal year is immaterial.

- 9 -The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)(Segment Information)
I Equivalent period of previous fiscal year (From Apr. 1, 2018 to Dec. 31, 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

21,984
－

2,304
－

1,599
－

25,888－－－25,888－21,984

2,304

1,599

25,888－25,888Segment income (loss)
4,138
885
(3)
5,020
(1,587)
3,432
Notes: 1. The adjustment for segment income (loss) was a loss of ¥1,587 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 assets
planned for business transfer has been appropriated as extraordinary losses.
The amount of impairment loss was ¥696 million for the nine months ended December 31, 2019.
(Significant changes to the amount of goodwill)
No items to report.
II Nine months ended December 31, 2019 (From Apr. 1, 2019 to Dec. 31, 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

22,388－2,170－

24,558－－－24,558－22,3882,170

24,558－24,558Segment income
4,465
1,077
5,543
(1,663)
3,879
Notes: 1. The adjustment for segment income was a loss of ¥1,663 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 February 13, 2020 at 15:00 (GMT+8)(Significant Subsequent Events)(Significant Facility investment)
The Company has resolved a facility investment in Takara Bio USA, Inc. (TBUSA), a consolidated subsidiary company at theboard of directors’ meeting held on January 23, 2020.
1.

Reason for facility investment
The reason is that TBUSA utilizes as a new facility. Also, TBUSA plans for relocation at the time of terminating theagreement of the current lease set in August 2021.

2.

Outline of facility investment(1) Location
Bay area, California, USA(2) Purpose(3) Investment amountLand, building and interior construction located newly
About 76 million U.S. dollars

3.

Installation time of equipment
2020
Land and building obtained
2021
Planned for completion of interior construction
2021
Planned for relocation

4.

Significant impact on marketing and productivity
No impact on the current consolidated fiscal year.

- 11 -

The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)
3. Supplementary Information(1) Trends in Key Management Indicators
1) Cash Flow
(Millions of yen)
Nine months ended
Nine months ended
Year ended Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
Term
(Apr. 1, 2018 - Mar. 31, 2019)(Apr. 1, 2018 - Dec. 31, 2018) (Apr. 1, 2019 - Dec. 31, 2019)
Net cash provided by (used in)

4,147

4,688

5,783

Net cash provided by (used in)investing activities(3,546)(2,581)(5,576)

Net cash provided by (used in)financing activities

(541)

(929)

(541)

operating activities

2)

Net Sales by Region(Millions of yen)
Nine months ended
Nine months ended
Year ended Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
(Apr. 1, 2018 - Mar. 31, 2019)(Apr. 1, 2018 - Dec. 31, 2018) (Apr. 1, 2019 - Dec. 31, 2019)Japan

11,303

9,892

16,101

U.S.

6,033

6,129

7,945

China

4,547

4,642

6,227

1,469

1,393

1,994

2,351

2,311

3,328

Asia excluding Japan and
China
Europe
Other
Total
3)

181

189

244

25,88824,55835,841

R&D Expenses by Reportable Segment(Millions of yen)
Nine months ended
Nine months ended
Year ended Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
(Apr. 1, 2018 - Mar. 31, 2019)(Apr. 1, 2018 - Dec. 31, 2018) (Apr. 1, 2019 - Dec. 31, 2019)

Bioindustry

2,021

2,126

2,723

Gene therapy

988

557

1,391

Corporate

155

128

222

3,164

2,812

4,337

Total

- 12 -

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

Nine months ended
Dec. 31, 2018
ActualNine months ended
Dec. 31, 2019
ActualYear on year
ChangeYear on year
Ratio

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

17,093
1,907
2,647
335
21,9842,304
1,599

17,750
952
3,392
291
22,388
2,170
－

657
(955)
745
(44)
403
(134)
(1,599)103.8%
49.9%
128.2%
86.8%
101.8%
94.2%－

Total net sales

25,88824,558(1,329)94.9%（Net Sales）(Operating Income and Loss)
Net sales

25,88824,558(1,329)94.9%

Cost of sales

10,947

9,767(1,180)89.2%

Gross profits

14,94014,791

(149)

99.0%

SG&A expenses

11,507

10,911

(595)

94.8%

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

514
38
544
3,164
7,019
225

332
52
434
2,812
7,060
218

(182)
14
(109)
(352)
41
(7)

64.6%
136.3%
79.8%
88.9%
100.6%
96.9%

Operating income

3,432

3,879

446

113.0%

201

212

11

105.6%

84

195

111

231.4%

3,549

3,896

346

109.8%(Non-operating Income and Expenses)
Non-operating income
Non-operating expenses
Ordinary income(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

55

0

(54)

0.9%

900

13

(886)

1.5%

2,703

3,883

1,179

143.6%

612

1,165

553

190.4%

2,091

2,717

625

129.9%

3

8

5291.2%

2,088

2,708

619

129.7%

2,014

2,102

88

104.4%

374

372

(1)

99.6%

Nine months ended
Dec. 31, 2018
ActualNine months ended
Dec. 31, 2019
ActualYear on year
ChangeYear on year
Ratio

4,138
885
(3)
(1,587)

4,465
1,077
－
(1,663)

327
191
3
(76)

107.9%
121.6%
－
－

3,432

3,879

446

113.0%

Depreciation and amortization (Property, plant andequipment and intangible assets)
Amortization of goodwill
Profit and loss by business segment (Operating income)Bioindustry
Gene therapy
Other (Former AgriBio)
Corporate
Total- 13 -

The original disclosure in Japanese was released on February 13, 2020 at 15:00 (GMT+8)(3) Comparative Statement of Income Relating to Consolidated Earnings Forecasts
Year ended
Mar. 31, 2019
ActualYear ending
Mar. 31, 2020
Previous forecast(Rounded down to one million yen)

Year ending
Mar. 31, 2020
Current forecast

Year on year
ChangeYear on year
Ratio

Previous
forecast
ChangePrevious
forecast
Ratio

100.9%（Net Sales）
Research reagents

23,601

24,147

24,358757

103.2%

210

Scientific instruments

2,570

1,255

1,165

(1,405)

45.3%

(89)

92.9%

Contracted services

4,954

5,748

6,082

1,128

122.8%

334

105.8%

Other

449

380

411

(38)

91.5%

31

108.2%

Bioindustry Total

31,57531,53132,018442

101.4%

487

101.5%

Gene therapy

2,443

2,368

2,281

(161)

93.4%

(87)

96.3%

Other (Former AgriBio)

1,822

－

－

(1,822)－－－

Total Net Sales

35,84133,90034,300(1,541)

95.7%

400

101.2%Net Sales

35,84133,90034,300(1,541)

95.7%

400

101.2%

Cost of sales

15,155

13,05013,169(1,986)

86.9%

118

100.9%

Gross profits

20,685

20,84921,130445102.2%

281

101.4%

SG&A expenses

15,221

14,64914,930

(290)

98.1%

281

101.9%

Transportation expenses

492

481

488

(3)

99.2%

6

101.4%

Advertising expenses

56

68

73

16

129.3%

4

106.4%(Operating Income and Loss)

Promotion expenses

703

612

584

(118)

83.2%

(27)

95.5%

R&D expenses

4,337

3,914

3,934

(402)

90.7%

20

100.5%

Administrative expenses, other
Enterprise taxes(external standards taxation)

9,361

9,272

9,550

188

102.0%

278

103.0%

270

299

299

29

110.8%

0

100.0%

Operating income

5,463

6,200

6,200

736

113.5%－

100.0%

307

348

313

6

102.2%

(34)

90.1%

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

105

198

213

107

201.9%

15

107.8%

5,665

6,350

6,300

634

111.2%

(50)

99.2%

Extraordinary income

146

0

0

(145)

0.5%

0

169.2%

Extraordinary losses

291.6%

Ordinary income(Extraordinary Income & Losses)

988

252

735

(252)

74.5%

483

Income before income taxes andminority interests

4,823

6,098

5,564

741

115.4%

(533)

91.3%

Income taxes

1,149

1,837

1,852

702

161.1%

14

100.8%Net Income

3,673

4,260

3,712

38

101.1%

(547)

87.1%

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

15

10

12

(3)

77.9%

2

120.5%

3,657

4,250

3,700

42

101.2%

(550)

87.1%

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

2,691

2,891

2,905

214

108.0%

13

100.5%

502

493

496

(6)

98.7%

3

100.7%

Year on year
ChangeYear on year
Ratio

Previous
forecast
ChangePrevious
forecast
Ratio

Amortization of goodwill

Profit and loss by business segment (Operating income)Year ended
Mar. 31, 2019
ActualYear ending Mar.
31, 2020
Previous forecast

Year ending
Mar. 31, 2020
Current forecast

Bioindustry

7,100

7,490

7,592

491

106.9%

102

101.4%

Gene therapy

506

964

914

408

180.5%

(50)

94.8%

Other (Former AgriBio)

(29)

－

－

29

－

－

－

Corporate(2,114)(2,255)(2,307)

(193)

－

(51)

－

Total

5,463

6,200

6,200

736

113.5%－

100.0%- 14 -