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.

February 14, 2024

Consolidated Financial Results
for the Nine Months Ended December 31, 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:
February 14, 2024
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
No(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended Dec. 31, 2023 (from Apr. 1, 2023 to Dec. 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended

Operating profit

Millions of yen%

Dec. 31, 2023

29,734

Dec. 31, 2022

60,206

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

Millions of yen%(50.6)

336

31.9

19,403

Millions of yen%(98.3)

586(2.6)

19,480For the nine months ended Dec. 31, 2023:
For the nine months ended Dec. 31, 2022:

Basic earnings
per share

Net income attributableto owners of parent

Ordinary profit

Millions of yen%(97.0)

154(98.9)(3.3)

14,595

1.6¥5,132 million¥22,620 million(77.3%)
32.4%

Diluted earnings
per share

Nine months ended

Yen

Yen

Dec. 31, 2023

1.28

-

Dec. 31, 2022

121.21-(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

yen

Dec. 31, 2023

123,087

112,52991.2

932.12Mar. 31, 2023

129,202112,45486.9

931.93

Reference:

EquityAs of Dec. 31, 2023:
As of Mar. 31, 2023:¥112,242 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

Fiscal year ending
Mar. 31, 2024
(Forecast)

Total

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

Full-year
Note:*

45,500Operating profit% Millions of yen(41.8)

3,000

Net income
attributable toowners of parent

Ordinary profit

Net income per
share

%

Millions ofyen%Millions of
yen

%

yen

(85.4)

3,200(84.5)

2,000(87.5)

16.61

Revisions to the financial forecast since the most recent announced: No

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 Dec. 31, 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 Dec. 31, 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)
Nine months ended Dec. 31, 2023

120,415,600 shares

Nine months ended Dec. 31, 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 for the Nine Months ended December 31, 2023 (4) Explanation ofConsolidated Financial Forecasts and Other Forward-looking Statements” on page 2 of the attached document.

Contents of the attached document
1. Overview of Financial Results for the Nine Months Ended December 31, 2023......................................................................
(1) Overview of Financial Results.............................................................................................................................................
(2) Overview of Financial Position............................................................................................................................................
(3) Overview of Cash Flows......................................................................................................................................................
(4) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements.................................................
2. Consolidated Quarterly Financial Statements and Primary Notes.............................................................................................
(1) Consolidated Quarterly Balance Sheets...............................................................................................................................
(2) Consolidated Quarterly Statements of Profit or Loss and Consolidated Quarterly Statements of Comprehensive Income.........
(Consolidated Quarterly Statements of Profit or Loss)...................................................................................................
(Consolidated Quarterly Statements of Comprehensive Income)...................................................................................
(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)..........................................................................
3. Supplementary Information.......................................................................................................................................................
(1) Trends in Key Indicators for Business Management...........................................................................................................
(2) Comparative Consolidated Statement of Income.................................................................................................................

-1-

2
2
2
2
2
3
3
5
5
6
7
8
8
8
8
8
9

1. Overview of Financial Results for the Nine Months ended December. 31, 2023
(1) Overview of Financial Results
The outlook for the global economy during the nine months ended December 31, 2023 is uncertain due to the prolonged inflation, a
slowdown in the Chinese economy, and Russia’s invasion of Ukraine.
Under these circumstances, in the Long-Term Management Plan 2026 for the six-year period ending March 31, 2026, and theMedium-Term Management Plan 2026 for the three-year period ending March 31, 2026, we have promoted the development of basic
biotechnology-based biologics development technologies through Reagents / Instruments business and CDMO business and havepromoted initiatives aimed at becoming a global platform provider responsible for the infrastructure of the life science industry.
For the nine months ended December 31, 2023, net sales decreased to ¥29,734 million (down 50.6% year-on-year) due to a decreaseof sales of test-related products resulting from a change in the legal positioning of new Coronavirus infectious disease. Cost of sales
decreased to ¥11,692 million (down 50.8% year-on-year) due mainly to a decrease in sales. As a result, gross profit decreased to¥18,041 million (down 50.5% year-on-year). Selling, general and administrative (SG&A) expenses were ¥17,704 million (up 4.0%
year-on-year) due to an increase in personnel expenses, research and development (R&D) expenses, etc., and operating profit was¥336 million (down 98.3% year-on-year).
As a result of the decrease in operating profit, ordinary profit decreased by ¥586 million (down 97.0% year-on-year), profit before
income taxes and others was ¥500 million (down 97.5% year-on-year), and net income attributable to owners of the parent was ¥154
million (down 98.9% 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 nine months ended December 31, 2023 were ¥123,087 million, a decrease of ¥6,114 million from theend of the previous fiscal year. This was mainly due to decreases of ¥16,507 million in cash and deposits and ¥4,105 million in notes
and accounts receivable-trade, despite increases of ¥9,519 million in property, plant and equipment, ¥2,425 million in other current
assets, and ¥1,590 million in merchandise and finished goods.
Total liabilities at the end of the nine months ended December 31, 2023 were ¥10,557 million, a decrease of ¥6,189 million from theend of the previous fiscal year. This was mainly due to decreases of ¥6,795 million in other current liabilities.
Total net assets at the end of the nine months ended December 31, 2023 were ¥112,529 million, an increase of ¥75 million from theend of the previous fiscal year. This was mainly due to an increase of ¥4,877 million in foreign currency translation adjustment due
to the yen's depreciation, despite a decrease of ¥4,902 million in retained earnings.
(3) Overview of Cash FlowsNet cash provided by operating activities amounted to ¥482 million, a decrease of ¥12,779 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 ¥4,566 million, depreciation andamortization of ¥3,259 million, and an increase in notes and accounts payable-trade of ¥1,167 million, and cash outflow from adecrease in consumption taxes payable of ¥3,352 million, income taxes paid of ¥2,286 million, an increase in inventories of 1,718
million, and a decrease in other current liabilities of ¥1,575 million.
Net cash used in investing activities amounted to ¥11,740 million, an increase of ¥2,189 million compared with the same period of
the previous fiscal year. This was mainly due to purchases of property, plant and equipment and intangible assets of ¥12,236 million,
payment into time deposits of 1,477 million, subsidy refund of ¥1,335 million, and proceeds from withdrawal of time deposits of¥2,873 million.
Net cash used in financing activities was ¥5,184 million, mainly due to cash dividends paid of ¥5,048 million, an increase of ¥1,107
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 nine months ended December 31, 2023, including
the effect of exchange rate change on cash and cash equivalents, decreased by ¥15,296 million from the end of the previous fiscal
year to ¥33,761 million.
(4) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
Results for the nine months of the fiscal year under review were basically in line with the forecasts announced on November 9, 2023.
In addition, the forecast for the fourth quarter of the current fiscal year is generally in line with the forecast for consolidated financial
results.

-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 Dec. 31, 2023

51,847
12,567
6,248
1,125
3,714
2,184
(118)
77,56935,340
8,462
7,838
1,466
4,314
4,610
(85)
61,94728,098(7,064)
21,0348,384(4,883)3,500
10,569(6,229)
4,340
8,654
2,102
1,748
(425)
1,323
40,956

29,578(8,176)
21,401
9,527(5,517)
4,010
11,504(7,197)
4,307
9,051
10,383
1,884
(562)
1,321
50,475

6,674
2,372
9,047

7,013
1,815
8,829

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

1,835
1,835
61,140123,087(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 Dec. 31, 2023

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

3,776
152
870
3,517
8,317

992
1,379
2,372
16,747

1,067
1,172
2,240
10,557

14,96532,89357,047104,906

14,96532,89352,144
100,003

7,680
(367)

12,557
(319)

7,312

12,238

235
112,454
129,202287
112,529
123,087

(2) Consolidated Quarterly Statements of Profit or Loss and Consolidated Quarterly Statements of Comprehensive Income(Consolidated Quarterly 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
assetsImpairment loss
OthersTotal 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

Nine months ended
Dec. 31, 2022
60,206
23,77136,434

Nine months ended
Dec. 31, 2023
29,734
11,692
18,041

4,382
188
5,867
408
6,184
17,031
19,403

4,638
234
6,119
325
6,385
17,704
336

98
113
39
252

131
65
119
16
333

18
106
48
1
175
19,480

18
53
12
84
586

250
652
902

3
3

25

12

39
64
20,318
4,857
827
5,684
14,63338
14,595

75
88
500
722
(399)
323
177
22
154

-5-

(Consolidated Quarterly Statements of Comprehensive Income)(Millions of yen)

Nine months ended
Dec. 31, 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-

Nine months ended
Dec. 31, 2023

14,633

177

7,954
32
7,987
22,620

4,906
48
4,955
5,132

22,549
70

5,080
52

(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)
Nine months ended
Dec. 31, 2022

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 reserve for bonuses
Increase (decrease) in retirement benefit liabilities
Interest income
Interest expenses
Insurance claim income
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 consumption taxes payable
Increase (decrease) in other current liabilities
Other
SubtotalInterest and dividend income received
Income expenses paid
Income taxes paid
Proceeds from insurance income
Subsidy refund
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
Subsidies received
Subsidy refund
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-7-

Nine months ended
Dec. 31, 2023

20,318
2,976
60
438
(5)

500
3,259
75
75
471
(44)

(39)
4
(98)
18
(652)
(225)
(9,846)
9,929
(766)

(259)
71
(131)
18
9
4,566
(1,718)
1,167

2,264
(2,541)355
22,18980(18)(9,641)
652
13,261(3,352)(1,575)
(49)
3,086
133
(16)
(2,286)(433)
482(7,312)
1,230(3,750)(1,477)2,873(12,236)

394

9

(121)
8
(9,551)(29)
462(1,335)(6)(11,740)(3,967)(108)(4,076)
1,418(5,048)(135)(5,184)
1,146

1,052
22,16023,212(15,296)
49,05833,761

(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
Nine months ended
Dec. 31, 2022

(Apr. 1, 2022 – Dec. 31, 2022)

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

13,261(9,551)(4,076)Nine months ended
Dec. 31, 2023

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

482
(11,740)(5,184)36,897(6,693)(4,119)Nine months ended
Dec. 31, 2023

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

9,655
9,256
4,788
2,444
3,394
195
29,73445,667
12,886
10,799
3,546
4,949
293
78,142(Apr. 1, 2023 – Dec. 31, 2023) (Apr. 1, 2022– Mar. 31, 2023)

2) Sales Breakdown by Region
Nine months ended
Dec. 31, 2022

Japan
United States
China
Asia excluding Japan and China
EuropeOthers
Total(Apr. 1, 2022 – Dec. 31, 2022)

35,931
9,879
7,950
2,589
3,660
195
60,206-8-(Apr. 1, 2023 – Dec. 31, 2023) (Apr.1, 2022 – Mar. 31, 2023)

(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

Nine months ended
Dec. 31, 2022

(Rounded down to one million yen)
Nine months ended
Y/Y
Y/Y
Dec. 31, 2023
changeratio

52,469
1,080
4,669
1,985
60,20622,989
638
4,369
1,737
29,734(29,480)
(442)
(300)
(247)
(30,471)(56.2%)(40.9%)(6.4%)(12.5%)(50.6%)

60,206
23,77136,434
17,031
506
33
506
5,867
9,735
381

29,734
11,692
18,041
17,704
420
49
527
6,119
10,365220(30,471)(12,079)(18,392)
673
(85)
16
21
251
630
(160)

(50.6%)(50.8%)(50.5%)
4.0%(16.9%)
47.8%
4.3%
4.3%
6.5%
(42.1%)

19,403336(19,066)(98.3%)

252
175
19,480

333
84
586

81
(90)
(18,893)32.4%(51.9%)(97.0%)

902
64
20,318

3
88
500

(899)
23
(19,817)(99.6%)
36.8%(97.5%)

5,684
14,633
38

323
177
22

(5,361)(14,455)(15)(94.3%)(98.8%)(39.8%)Net income attributableto owners of the parent

14,595

154(14,440)(98.9%)

Depreciation andamortization (Property,
plant and equipment andintangible assets)
Amortization of goodwill

2,976

3,259

283

9.5%

438

471

33

7.7%

Administrative expense, other

Enterprise taxes (external
standards taxation)

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

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

Net income (loss) attributable tonon-controlling interests-9-