The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)

Consolidated Financial Statements for the Year Ended March 31, 2020
FY2020 (April 1, 2019 - March 31, 2020) [UNAUDITED]May 14, 2020
Takara Bio Inc.
Tokyo Stock Exchange (1st section)4974
http://www.takara-bio.co.jp
Koichi Nakao, President
Takuya Kakemi, General Manager of Corporate
Management Division, Executive Officer
Tel. (077) 565-6970
Scheduled date of general shareholders’ meeting:June 23, 2020
Scheduled date of starting delivery of dividends:
June 24, 2020
Scheduled date of annual securities report filing date:June 26, 2020
Supplementary documents of the financial results:
Yes
Financial results information meeting:Yes
Notes: 1. The accompanying financial statements have been prepared in accordance with accounting principles andpractices generally accepted in Japan.
2. Amounts are rounded down to the nearest million yen.
Company name:
Stock exchange listings:
Code number:
URL:
Company representative:
Contact:

1. Results for the year ended March 31, 2020 (Apr. 1, 2019 – Mar. 31, 2020)(1) Consolidated operating results(Percentages indicate changes from the same period of the previous fiscal year.)Year ended
Mar. 31, 2020

Net sales
Operating profit
Ordinary profit
Net income (loss) attributable to owners ofparent
Net income per share (in yen)
Fully diluted net income per share (in yen)
(Note) Comprehensive income(Reference) Equity in earnings of affiliates(2) Consolidated financial position

Total assets
Net assets
Equity ratio (%)
Net assets per share (in yen)
(Reference) Equity(3) Consolidated cash flow
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalents, end year

(Millions of yen)
34,565
6,274
6,347
3,819
31.72
－
3,216
－

(%)
(3.6)
14.8
12.1
4.4

18.9%

Year ended
Mar. 31, 2019

(Millions of yen)
35,841
5,463
5,665
3,657
30.38
－
2,705
－

(%)
10.9
53.7
46.7
56.6

10.2%

As of Mar. 31, 2020
(Millions of yen)

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

75,00966,591
88.7
552.2366,496

71,04064,09590.1
531.5764,009Year ended Mar. 31, 2020
(Millions of yen)

Year ended Mar. 31, 2019
(Millions of yen)

6,339
(212)
(946)
14,462

5,783(5,576)
(541)
9,464

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)
2. Dividends

First quarter end
Second quarter end
Third quarter end
Year end
AnnualTotal dividend (Millions of Yen)
Payout ratio (%)
Dividend on equity (%)

Year ended
Mar. 31, 2019Year ended
Mar. 31, 2020

Annual dividends per share in yen
Year ending
Mar. 31, 2021 (Forecast)

－

－

－

0.00

0.00

0.00

－

－

－

7.00
7.00
842
23.0
1.3

8.00
8.00
963
25.2
1.5

8.00
8.00
37.1

3. Forecast for the year ending March 31, 2021 (Apr. 1, 2020 – Mar. 31, 2021)(Percentages indicated changes from the same period of the previous fiscal year.)Six months ending Sep. 30, 2020
Net sales
Operating profit
Ordinary profit
Net income attributable toowners of the parent
Net income per share (inyen)※(Millions of yen)
14,365
619
693
－

(%)

(12.7)(79.6)(76.6)(100.0)0.00

Year ending Mar. 31, 2021
33,800
4,500
4,600
2,600

(2.2)
(28.3)(27.5)(31.9)

21.59

Others(1) Changes in subsidiaries during the period(Changes in specified subsidiaries resulting in change of scope) ： No
Newly included: － (Name)
Excluded: － (Name)(2) 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(3) Number of outstanding shares (Common stock)1) Number of outstanding shares at year end (Treasury stocks are included)
120,415,600
As of March 31, 2020
As of March 31, 2019
120,415,600
2) Number of treasury stocks at year end－
As of March 31, 2020－
As of March 31, 20193) Average number of outstanding shares
120,415,600
As of March 31, 2020
120,415,600
As of March 31, 2019

※ 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 (4) Future Outlook on page 3 of the attached document.
The Company will hold a briefing for institutional investors and analysts on May 18, 2020. The material handed out at thisbriefing and a review of questions and answers will be posted on our website.

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)
Contents of the attached document
1. Qualitative Information for the year ended March 31, 2020…………………………...........………………………………..
(1) Overview of Financial Results……………………………………………………….………….………….…………......
(2) Overview of Financial Position………………………………………………...…………………………...……..............
(3) Overview of Cash Flows…………………………………………………………….…………………………….……....
(4) Future Outlook…………………………………………………………………………………………………………….
2. Basic Concept on Selection of Accounting Standards……………………………………………………………...................
3. Consolidated Financial Statements and Primary Notes…………………………………………………………….………....
(1) Consolidated Balance Sheets…………………………………………………………………………………...................
(2) Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income……........................
(Consolidated Statements of Profit or Loss) ………………………………………………………………….................
(Consolidated Statements of Comprehensive Income) ……………………………………………………….................
(3) Consolidated Statements of Changes in Net Assets…………………………………………………………………….....
(4) Consolidated Statements of Cash Flows………………………………………………………………………..………....
(5) Notes to Consolidated Financial Statements……………………………………………………………………................
(Notes on Premise of Going Concern) …………………………………………………………………………………..
(Changes in Accounting Policies) ………………………………………………………………………………….........
(Changes in Indication)………………………………………………..…………..…………..…………..…………......
(Segment Information, etc.)……………………………………………………………………………..……………….
(Per Share Information) …………………………………………………………………………………………………
(Significant Subsequent Events) ………………………………………………………………………………………...
4. Supplementary Information …………………………………………………………………………………………………..
(1) Trends in Key Management Indicators……………………………………………………………………………………
(2)Comparative Consolidated Statement of Profit or Loss …………………………………………………………………
(3)Comparative Statement of Profit Relating to Consolidated Earnings Forecast……………………………………………

- 1 -

2
2
2
3
3
3
4
4
6
6
7
8
9
10
10
10
10
11
13
13
14
14
15
16

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)
1. Overview of Financial Results for the year ended March 31, 2020
(1) Overview of Financial Results
In the fiscal year under review, ended March 31, 2020, although the Japanese economy has continued to be on a moderately
recovering trend due to a pickup in personal consumption and improvement of corporate earnings, its prospects have become
uncertain due to the trade friction issue in the US and China, Brexit, and influence of the new Coronavirus disease (COVID-19)
pandemic.
Under these circumstances, faced the last year of the three-year Takara Bio’s Medium-Term Management Plan 2020 started in
FY2018, Takara Bio (the Company) made the efforts toward the objective, to enhance our presence as a global enterprise andregenerative medical product company, and achieve prodigious growth.
As a result, overall net sales in the fiscal year under review, ended March 31, 2020 decreased 3.6% year on year to ¥34,565
million, due to the influence of assignment of business related to functional food and mushroom in the AgriBio Business in theprevious fiscal year, despite contributions from sales for research reagents and contracted services exceeding those of the same
period of the previous fiscal year and receipt of licensing fees under the co-development/exclusive sales agreement related to NYESO-1・siTCRTM and CD19・CAR gene therapy products. Cost of sales decreased 11.2% year on year to ¥13,459 million due toa decrease of net sales, change of sales composition by item and others, and gross profit increased 2.0% year on year to ¥21,105
million. Selling, general and administrative (SG&A) expenses decreased 2.6% year on year to ¥14,830 million due to the decreasein R&D expenses, and the Company recorded operating profit up 14.8% year on year to ¥6,274 million.
Accompanied with the increase in operating profit, ordinary profit increased 12.1% to ¥6,347 million, profit before income taxes
increased 12.7% year on year to ¥5,433 million, and net income attributable to owners of parent increased 4.4% year on year to¥3,819 million.
The statuses of the Company business segments are as follows.
Bioindustry Business
Given the ever-expanding activities of biotechnology R&D in the field, the Company position the Bioindustry Business as its corebusiness, in which it offers products and services supporting such R&D activities.
In the fiscal year under review, sales of scientific instruments decreased year on year, while sales of research reagents andcontracted services increased year on year.
As a result of the above, sales to external customers for this business increased 2.2% year on year to ¥32,269 million, and grossprofit increased 6.2% year on year to ¥19,514 million due to an increase of net sales. With the SG&A expenses increased 4.4% year
on year to ¥11,766 million due to the increase in R&D expenses, the Company recorded operating profit up 9.1% year on year to¥7,748 million.
Gene Therapy Business
The business focuses on development of gene therapies for diseases such as cancer, which includes the oncolytic virus
therapy utilizing canerpaturev (Abbreviated to C-REV) and the engineered T cell therapy utilizing the Company’s
proprietary technologies such as the RetroNectin TM method for a highly efficient gene transduction; the RetroNectin TM
expansion-culture system enabling a highly efficient expansion of lymphocytes; as well as siTCR TM technology.
In the fiscal year under review, the licensing fees under the domestic co-development and exclusive sales agreement related to
NY-ESO-1・siTCRTM and CD19・CAR gene therapy products, and sales of the investigational products based on the agreement
were generated.
As a result, net sales to external customers for this business decreased 6.0% year on year to ¥2,295 million, and gross profit
decreased 17.0% year on year to ¥1,590 million due to changes of sales composition by item and others. However, SG&A expenses
decreased 42.5% year on year to ¥810 million due to decrease in R&D expenses. Accordingly, operating profit increased 54.1%
year on year to ¥780 million.
(2) Overview of Financial Position
In the fiscal year under review, total assets were ¥75,009 million, an increase of ¥3,969 million compared with that at the end of
the previous fiscal year. This primarily resulted from increases in property, plant and equipment of ¥2,808 million based on building
the Center for Gene and Cell Processing II.
Total liabilities were ¥8,418 million, an increase of ¥1,472 million compared with that at the end of the previous fiscal year. This
primarily resulted from an increase of ¥1,120 million in lease obligation based on the installation of gas cogeneration system(current liabilities and non-current liabilities).
Total net assets stood at ¥66,591 million, an increase of ¥2,496 million compared with that at the end of the previous fiscal year.
The main factor was an increase of ¥3,100 million in retained earnings and a decrease of ¥527 million in foreign currency translation- 2 -The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)
adjustment.
(3) Overview of Cash FlowsNet cash provided by operating activities was ¥6,339 million, up by ¥556 million compared with the previous fiscal year. This was
mainly due to profit before income taxes and minority interests of ¥5,433 million, depreciation and amortization of ¥2,921 million,
an increase in inventories of ¥974 million, and income taxes paid of ¥1,247 million.
Net cash provided by investing activities was ¥212 million, a decrease of ¥5,363 million compared with the previous fiscal year.
This was primarily due to ¥6,785 million in payments into time deposits, ¥10,515 million in proceeds from withdrawal of time
deposits and ¥3,983 million in payments for purchase of property, plant and equipment and intangible assets, mainly due to theconstruction of the Center for Gene and Cell Processing II.
Net cash used in financing activities was ¥946 million, an increase of ¥404 million compared with the previous fiscal year. Thiswas primarily because of an increase of ¥841 million in cash dividends paid.
As a result of the above, balance of cash and cash equivalents at the fiscal year-end, including the effect of exchange rate change
on cash and cash equivalents, stood at ¥14,462 million, up by ¥4,998 million from the previous fiscal year-end.
(4) Future Outlook
From April of this year, the Company has newly formulated the "Takara Bio Long-Term Management Plan 2026" ("the Long-TermPlan") for the six years ending in FY2026 and the "Takara Bio Medium-Term Management Plan 2023" ("the Medium-Term Plan")for the three years ending in FY2023. The Company will steadily implement the strategies outlined in the Long-Term Plan and theMedium-Term Plan, promote the development of biopharmaceutical platform technologies through the research reagents andinstruments business and CDMO business, and aim to be a company that continuously create new therapeutic modalities.
In the fiscal year ending March 31, 2021, the Company is forecasting net sales of ¥33,800 million, operating profit of ¥4,500
million, ordinary profit of ¥4,600 million and net income attributable to owners of the parent of ¥2,600 million.
For a comparison between the 2021 forecast and the FY2020 result, refer to “4. Supplementary Information (3) Comparison
Statement of Profit Relating to Consolidated Earnings Forecast” on page 16, and the formulation of "Takara Bio Long-Term
Management Plan 2026" and "Takara Bio Medium-Term Management Plan FY2023" disclosed on May 14 2020.
The FY2021 outlook is made on the assumption that the effects of the COVID-19 infectious diseases will converge over a certain
period of time, and may fluctuate depending on the situation. In the event that there is a need to revise our performance forecast,
the Company will disclose it promptly.

2. Basic Concept on Selection of Accounting Standards
The Company drafts consolidated financial statements based on Japanese standards taking into consideration comparability
between fiscal periods as well as comparability among companies.
The Company’s policy regarding the application of International Financial Reporting Standards is to apply them as appropriate
after taking into consideration domestic and international circumstances.

- 3 -The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)
2. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Millions of yen)
As of Mar. 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-tradeMarketable 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
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Others
Accumulated depreciation
Others, net
Total Property, plant and equipment
Intangible assets
Goodwill
Technology-based intangible assets
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Retirement benefit asset
Other
Total investments and other assets
Total non-current assets
Total assets- 4 -As of Mar. 31, 2020

17,033
8,604
2,000
4,523
706
1,506
941
(41)
35,275

18,266
9,106
2,000
4,511
1,208
1,874
1,479
(56)
38,387

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

16,478(5,630)10,847
6,705(3,353)
3,352
7,912(5,217)
2,694
5,724
772
(35)
736
85
863
(90)
772
24,213

7,598
3,858
1,171
12,628

7,006
3,095
1,252
11,355

839
91
801
1,732
35,76571,040

779
40
233
1,053
36,62275,009

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(Millions of yen)
As of Mar. 31, 2020

As of Mar. 31, 2019
Liabilities
Current liabilities
Notes and accounts payable-trade
Lease obligations
Accrued payable-otherAccrued income taxes
Provision for bonus
Other
Total current liabilities
Non-current liabilities
Lease obligations
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 income
Non-controlling interests
Total net assets
Total liabilities and net assets

- 5 -

1,536
－
2,044
391
593
1,451
6,017

1,027
134
2,324
683
557
1,520
6,248

－
667
260
927
6,945

986
783
400
2,169
8,418

14,96532,893
15,401
63,26014,96532,89318,501
66,360

964

436

(215)

(300)

749
85
64,09571,0401359566,59175,009

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(2) Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income(Consolidated Statements of Profit or Loss)(Millions of yen)
Year ended
Mar. 31, 2020

Year ended
Mar. 31, 2019
Net sales
Cost of sales
Gross profit
SG&A expenses
Provision for doubtful accounts
Employees' salaries and bonuses
Provision for accrued bonuses
Retirement benefit expenses
R&D expenses
Other
Total SG&A expenses
Operating profit
Non-operating profit
Interest income
Rent of Real estate
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Foreign exchange loss
Real estate leasing expense
Other
Total non-operating expenses
Ordinary profit
Extraordinary profit
Gain on sale of fixed assets
Gain on sale of businesses
Insurance proceeds due to disaster
Total extraordinary profit
Extraordinary losses
Loss on sale and retirement of fixed assets
Impairment losses
Loss due to disasterIndemnifiable loss
Loss on sale of investment securities
Total extraordinary losses
Profit 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 -35,841
15,155
20,68534,565
13,45921,105

3
4,048
327
173
4,337
6,331
15,221
5,463

9
4,095
297
169
3,869
6,388
14,830
6,274

89
86
131
307

141
113
61
316

－
29
39
36
105
5,665

7
160
38
36
243
6,347

1
90
54
146

0
－
－
0

99
696
131
60
－
988
4,823
1,453
(303)
1,149
3,673
15
3,657

31
880
－
－
2
914
5,433
1,544
57
1,601
3,831
11
3,819

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(Consolidated Statements of Comprehensive Income)(Millions of yen)
Year ended
Mar. 31, 2020

Year ended
Mar. 31, 2019
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

- 7 -

3,673

3,831

(1,088)
119
(968)
2,705

(530)
(85)
(615)
3,216

2,699
5

3,206
9

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(3) Consolidated Statements of Changes in Net Assets
Previous Fiscal Year (Apr. 1, 2018 – Mar. 31, 2019)(Millions of Yen)
Shareholders' equity

Share capital
Balance at the
beginning of current
periodCumulative effects ofaccounting changes
Restated balance
Changes of items during
the period
Dividends fromsurplus
Net income (loss)
attributable to ownersof the parent
Net changes of items
other thanshareholders' equity
Total changes of items
during the period
Balance at the end ofcurrent period

14,965

Capitalsurplus32,893Retainedearnings

12,285

Accumulated other comprehensive income
Total
Cumulative
Total
Foreign currency
accumulated
remeasurements
shareholders'translation
otherof retirement
equityadjustment
comprehensive
benefitincome60,144

2,042

(334)

1,707

Noncontrollinginterests

Total
net assets

106

61,959－14,96532,893－

12,28560,144

2,042

(334)

1,707

106

61,959

(541)

(541)

(541)

3,657

3,657

3,657
(1,078)

119

(958)

(21)

(979)

－

－

3,115

3,115

(1,078)

119

(958)

(21)

2,136

14,96532,893

15,401

63,260

964

(215)

749

85

64,095

Fiscal Year under Review (Apr. 1, 2019 – Mar. 31, 2020)(Millions of Yen)
Shareholders' equity

Share capital
Balance at the
beginning of current
periodCumulative effects ofaccounting changes
Restated balance
Changes of items during
the period
Dividends fromsurplus
Net income (loss)
attributable to ownersof the parent
Net changes of items
other thanshareholders' equity
Total changes of items
during the period
Balance at the end ofcurrent period

14,965

14,965

Capitalsurplus32,89332,893Retainedearnings

Accumulated other comprehensive income
Total
Cumulative
Total
Foreign currency
accumulated
remeasurements
shareholders'translation
otherof retirement
equityadjustment
comprehensive
benefitincome
964

(215)

749

Noncontrollinginterests

Total
net assets

85

64,095

15,401

63,260123

123

15,524

63,383

(842)

(842)

(842)

3,819

3,819

3,819

123
964

(215)

749

85

64,218

(527)

(85)

(613)

9

(603)

－

－

2,977

2,977

(527)

(85)

(613)

9

2,373

14,96532,89318,501

66,360

436

(300)

135

95

66,591- 8 -The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(4) Consolidated Statements of Cash Flows(Millions of yen)

Year ended
Mar. 31, 2019
Net cash provided by (used in) operating activities
Profit 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 provision for bonus
Increase (decrease) in retirement benefit liabilities
Interest income
Interest expenses
Loss (gain) on sale and retirement of fixed assets
Disaster loss
Decrease (increase) in trade receivable-trade
Decrease (increase) in inventories
Increase (decrease) in trade payables
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
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sale and redemption of investment
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 sale of businesses
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- 9 -Year ended
Mar. 31, 2020
4,823
2,691
696
182
502
1
267
8
(89)
－
98
131
(974)
(1,536)
(199)
546
(236)
6,914
82
－
(1,213)
5,783

5,433
2,921
880
113
496
15
(31)
116
(141)
7
31
－
(579)
(974)
(468)
(424)
59
7,455
139
(7)
(1,247)
6,339(14,667)
14,395(4,000)(6,785)
10,515(4,000)

4,000

4,000

(5,977)(3,983)

7

110

(105)
764
5
(5,576)

(69)
－
(0)
(212)

(541)
－
(541)
(252)
(587)
10,051
9,464

(841)
(104)
(946)
(182)
4,998
9,464
14,462

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
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 consolidated 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 to customers, in an amountthat reflects the consideration expected to be received in the exchange for those goods or services.
Accordingly, the balance of retained earnings in the consolidated statements of changes in net assets increased by ¥123 million
as the cumulative effect was reflected in net assets at the beginning of the fiscal year under review.
The impact on profit and loss for the year ending March 31, 2021 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 consolidated fiscal year. The Company adopts a method to recognize the cumulative effectof 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 “Long-term prepaid expenses” for “Investments and other assets” has been classified as rightof -use assets.
Accordingly, increases by ¥772 million in “Other, net” for Property, plant and equipment, by ¥88 million in “Lease obligation”
for current liabilities, and by ¥221 million in “Lease obligation” for Non-current liabilities, and decreases by ¥2 million in “Other”
for Current assets and by ¥460 million in “Other” for “Investments and other assets” have been allocated.
The impact on profit and loss for the year ended March 31, 2021 is immaterial.
(Changes in Indication)(1) Consolidated Balance Sheets"Long-term prepaid expenses" under investments and other assets, which had been stated separately in the previous fiscal
year, has been included in "Other" from the current consolidated fiscal year, due to its lack of materiality.
(2) Consolidated Statements of Profit or Loss
(SG&A expenses)"Sales promotion expenses" under SG&A expenses, which had been stated separately in the previous fiscal year, has been
included in "Other" in the current consolidated fiscal year due to the lack of materiality.
(Non-operating profit)"Government grant income" under non-operating profit, which had been stated separately in the previous fiscal year, hasbeen included in "Other" from the current consolidated fiscal year due to its lack of monetary materiality.
(Non-operating expenses)"Non-operating expenses," which had been stated separately in the previous consolidated fiscal year, has been included in"Other" from the current consolidated fiscal year, because the amount of non-operating expenses has become insignificant.

- 10 -

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(Segment Information, etc.)【Segment Information】
1. Outline of reportable segment
The Company’s reportable segments are components of the Company for which separate financial information is available
that is evaluated regularly by the Board of Directors to determine allocation of management resources and assess performance.
The Company has established business divisions by product and service. Each division drafts comprehensive strategies forthe products and service including subsidiaries and implements them in their business activities.
Accordingly, the Company is comprised of segments by products and services based on these business divisions and has
defined two reportable segments. These two reportable segments are Bioindustry and Gene Therapy.
The primary products, etc. of each segment are presented in the following table.
The Company’s functional food business and mushroom business in AgriBio segment have been transferred on January 1,
2019 and March 1, 2019, respectively.
Reportable segment
Bioindustry
Gene Therapy

Primary products, etc.
Research reagents (genetic, cellular and protein engineering reagents), scientific instruments,
contracted services and compensation for gene related patents, etc.
Licensing fees for development and sales relating to the gene therapy products, investigational
products

2. Calculation method for net sales, profit or loss, assets, liabilities, and other items of each reportable segment
The accounting treatment of reportable business segments is in accordance with the accounting policies adopted for thecreation of consolidated financial statements.
The figures for the profit of reportable segments are based on operating profit.
Corporate profit and transfer is based on the prevailing market price.
3. Information on the amount of net sales, profit (loss), assets, and other items by reportable segment
Previous Fiscal Year (From Apr. 1, 2018, to Mar. 31, 2019)

Bioindustry

Gene
Therapy

AgriBio

31,575
－

2,443
－

1,822
5

35,841
5

Total

31,575

2,443

1,827

35,846

Segment profit (loss)

7,100

(29)

7,578

Segment assets

57,514506－

60,727

Total

Adjustment(Note: 1)(Millions of yen)Amountrecognized inconsolidated
financialstatements(Note: 2)

Net sales
External customers
Corporate

Other items

3,212

－
(5)
(5)

(2,114)
10,31335,841－35,841
5,463
71,040Depreciation and amortization
2,262
229
73
2,566
125
2,691
－
－
－
Amortization of goodwill
502
502
502
Increase in total fixed assets,
property, plant and equipment
4,880
1,035
23
5,939
62
6,002
and intangible assets
Notes: 1. The adjustment for segment profit (loss) was a loss of ¥2,114 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 profit (loss) has been adjusted to the operating profit of consolidated financial statements.

- 11 -

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)
Fiscal Year under Review (From Apr. 1, 2019, to Mar. 31, 2020)

Net sales
External customers
Corporate(Millions of yen)Amountrecognized inconsolidated
Adjustment
financial(Note: 1)statements(Note: 2)

Bioindustry

Gene
Therapy

32,269－2,295－

34,565－

Total－

34,565－－

Total

32,2692,295

34,565－34,565

Segment profit (loss)

7,748

780

8,529

(2,254)

6,274

Segment assets

60,997

2,170

63,168

11,84175,009Other items
Depreciation and amortization

2,578
231
2,809
111
2,921
－
－
Amortization of goodwill
496
496
496
Increase in total fixed assets,
property, plant and equipment
5,114
73
5,187
177
5,365
and intangible assets
Notes: 1. The adjustment for segment profit (loss) was a loss of ¥2,254 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 profit (loss) has been adjusted to the operating profit of consolidated financial statements.
4.

Information about impairment losses for non-current assets by reportable segment
Previous fiscal year (From Apr. 1, 2018, to Mar. 31, 2019)(Millions of yen)
Bioindustry
Impairment losses

Gene Therapy－－

AgriBio
696

Reconciliations

Consolidated－

696

Fiscal year under review (From Apr. 1, 2019, to Mar. 31, 2020)(Millions of yen)
Bioindustry
Impairment losses

Gene Therapy Reconciliations

Consolidated

361

880

518

－

- 12 -

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(Per Share Information)
Year ended Mar. 31, 2019
(Apr. 1, 2018 - Mar. 31, 2019)Year ended Mar. 31, 2020
(Apr. 1, 2019 - Mar. 31, 2020)¥531.57¥552.23¥30.38¥31.72

Net assets per share

Net income per share
Notes: 1. Fully diluted net income per share is not presented since there were no potential shares.
2. The basis of calculation of net income per share is as follows.

Year ended Mar. 31,2019Year ended Mar. 31,2020(Apr. 1, 2018 - Mar. 31, 2019) (Apr. 1, 2019 - Mar. 31, 2020)
Net income per share
Net income attributable to owners of the parent(¥ million)
Amount not attributable to common shareholders(¥ million)
Net income attributable to owners of the parent inaccordance with the common stock (¥ million)
Average number of shares outstanding during the term
(1,000 shares)

3,657

3,819

－

－

3,657

3,819

120,415

120,415(Significant Subsequent Events)(Changes in reportable segments)
Effective 1 April, 2020, the Company changed its reportable segments from the "Bioindustry " and "Gene therapy" segments, whichwere classified by products and services based on business divisions, to a single segment from the following fiscal year.
(Significant Facility investment)
The Company has resolved a facility investment and acquired the land and buildings as of May 11 (U.S. Local time) in Takara
Bio USA, Inc. (TBUSA), a consolidated subsidiary company at the board 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
San Jose City, California, USA(2) Purpose(3) Investment amountLand, buildings and interior construction located newly
About 76 million U.S. dollars

3.

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

4.

Significant impact on marketing and productivity
No impact on the consolidated fiscal year ended March 31, 2021

(Execution of significant agreement)
The Company entered into an agreement with Tasly Biopharmaceuticals Co., Ltd (Headquarters: Shanghai, China; hereafter,“Tasly”) in for co-development, manufacturing and exclusive sales of oncolytic virus C-REV (Abbreviated to canerpaturev) in
China as of May 11, 2020.
Under the agreement, the Company will transfer C-REV manufacturing technologies to Tasley in addition to providing
developmental data. Meanwhile, Tasly will conduct the clinical development in China (including Hong Kong and Macao,
excluding Taiwan) with the aim of launching C-REV as a new anti-cancer drug in China.
The Company will receive upfront, annual and milestone payments from Tasly depending on the achievement of certain
development based on the execution of the agreement. Following launch, the Company will also receive milestone payments
upon the achievement of target sales and running royalty on net sales.
- 13 -

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)
4. Supplementary Information(1) Trends in Key Management Indicators1). Cash FlowTerm
Net cash provided by (used in)operating activities
Net cash provided by (used in)investing activities
Net cash provided by (used in)financing activities
2). Net Sales by Region(Millions of yen)
Year ended Mar. 31, 2020
(Apr. 1, 2019 - Mar. 31, 2020)

Year ended Mar. 31, 2019
(Apr. 1, 2018 - Mar. 31, 2019)
5,783

6,339

(5,576)

(212)

(541)

(946)
(Millions of yen)
Year ended Mar. 31, 2020
(Apr. 1, 2019 - Mar. 31, 2020)

Year ended Mar. 31, 2019
(Apr. 1, 2018 – Mar. 31, 2019)Japan

16,10114,804

U.S.

7,945

8,011

China

6,227

6,391

Asia excluding Japan and China

1,994

1,877

Europe

3,328

3,207

Other

244

271

35,841

34,565

Total
3). R&D Expenses by Reportable Segment(Millions of yen)
Year ended Mar. 31, 2020
(Apr. 1, 2019 - Mar. 31, 2020)

Year ended Mar. 31, 2019
(Apr. 1, 2018 - Mar. 31, 2019)

Bioindustry

2,723

2,947

Gene therapy

1,391

744

AgriBio－－

Corporate

222

177

4,337

3,869

Total

- 14 -

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(2) Comparative Consolidated Statement of Profit
Year ended
Mar. 31, 2019
Actual（Net Sales）

Year ended
Mar. 31, 2020
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)

23,601
2,570
4,954
449
31,5752,443
1,822

24,434
1,242
6,186
405
32,2692,295－

833(1,328)
1,232
(43)
693
(147)
(1,822)103.5%
48.3%
124.9%
90.2%
102.2%
94.0%－

Total net sales

35,841

34,565(1,275)

96.4%
96.4%

(Operating profit and Loss)
Net sales

35,841

34,565(1,275)

Cost of sales

15,155

13,459(1,696)88.8%

Gross profits

20,685

21,105420

102.0%

SG&A expenses

15,221

14,830

(390)

97.4%

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

492
56
703
4,337
9,361
270

492
73
579
3,869
9,511
305

0
16
(124)
(467)
149
34

100.1%
129.3%
82.4%
89.2%
101.6%
112.8%

Operating profit

5,463

6,274

811

114.8%

307

316

9

103.1%(Non-operating profit and Expenses)
Non-operating profit
Non-operating expenses
Ordinary profit

105

243

137

230.1%

5,665

6,347

682

112.1%

146

0

(146)

0.3%

(Extraordinary profit & Losses)
Extraordinary profit
Extraordinary losses

988

914

(73)

92.5%

Profit before income taxes and others

4,823

5,433

610

112.7%

Income taxes

1,149

1,601

452

139.3%Net Income
Net income (loss) attributable to non-controllinginterests
Net income attributable to owners of the parent

3,673

3,841

158

104.3%

Depreciation and amortization(Property, plant and equipment and intangible assets)
Amortization of goodwill

15

11

(4)

74.4%

3,657

3,819

162

104.4%

2,691

2,921

230

108.6%

502

496

(6)

98.7%

Year on year
ChangeYear on year
Ratio
109.1%
154.1%－－
114.8%

Profit and loss by business segment (Operating profit)
Year ended
Mar. 31, 2019
ActualBioindustry
Gene therapy
Other (Former AgriBio)
Corporate
Total- 15 -

Year ended
Mar. 31, 2020
Actual

7,100
506
(29)
(2,114)

7,748
780
－
(2,254)

648
274
29
(140)

5,463

6,274

811

The original disclosure in Japanese was released on May 14, 2020 at 15:00 (GMT+8)(3) Comparative Statement of Profit Relating to Consolidated Earnings Forecasts（Net Sales）

Year ended
Mar. 31, 2020
Actual(Rounded down to one million yen)

Year ending
Mar. 31, 2021
Forecast

Year on year
ChangeYear on year Ratio

Research reagents

24,84023,788(1,051)

Scientific instruments

1,242

1,178

(64)

94.8%

Contracted services

6,186

7,201

1,014

116.4%

95.8%

Gene therapy

2,295

1,631

(663)

71.1%

Total Net Sales

34,56533,800

(765)

97.8%

Net Sales

34,56533,800

(765)

97.8%

Cost of sales

13,45912,999

(459)

96.6%

Gross profits

21,10520,800

(305)

98.6%

SG&A expenses(Operating profit and Loss)

14,83016,3001,469

109.9%

Transportation expenses

492

588

96

119.5%

Advertising expenses

73

77

4

105.8%

Promotion expenses

579

551

(27)

95.2%

R&D expenses

3,869

4,814

945

124.4%

Administrative expenses, other
Enterprise taxes(external standards taxation)

9,511

9,975

464

104.9%

305

292

(12)

95.9%

Operating profit

6,274

4,500

(1,774)

71.7%

Non-operating profit

316

231

(85)

73.0%

Non-operating expenses

243

131

(112)

53.9%

6,347

4,600

(1,747)72.5%

Extraordinary profit

0

0

0

－

Extraordinary losses(Non-operating profit and Expenses)

Ordinary profit(Extraordinary profit & Losses)

914

653

(261)

71.4%

Profit before income taxes andminority interests

5,433

3,946

(1,487)

72.6%

Income taxes

1,601

1,338

(263)

83.6%

Net Income

3,831

2,607

(1,224)68.1%

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

11

7

(4)

65.3%

3,819

2,600

(1,219)68.1%

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

2,921

3,232

310

110.6%

496

477

(18)

96.3%

Amortization of goodwill*1 Sales of bio-industry support "Other" have been included in "Reagents for Research" since FY3/2021, and the results for FY3/2,020
in this table have been reclassified to reflect these changes.
*2 As a result of the change to a single segment from March 2021, the statement for consolidated earnings forecasts by segment(operating profit) is omitted from this time.

- 16 -