The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)

Consolidated Financial Statements for the Year Ended March 31, 2022
FY2022 (April 1, 2021 – March 31, 2022) [UNAUDITED]May 12, 2022
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
Tel. (077) 565-6970
Scheduled date of general shareholder’s meeting:June 24, 2022
Scheduled date of starting delivery of dividends:
June 27, 2022
Scheduled date of annual securities report filing date:June 29, 2022
Supplementary documents of the financial results:
Yes
Financial results briefing:
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, 2022 (Apr. 1, 2021 – Mar. 31, 2022)(1) Consolidated operating results(Percentages indicate changes from the same period of the previous fiscal year.)Year ended
Mar. 31, 2022
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)
Return on equity
Ratio of ordinary profit to total assets
Ratio of operating profit to net sales(Note) Comprehensive income(Millions of yen)
67,69928,90228,45919,849Year ended
Mar. 31, 2021
(%)
46.9
107.1
101.0
107.9

164.84-

23,689(Millions of yen)
46,086
13,952
14,159
9,547

(%)
33.3
122.4
123.1
149.9

79.29
23.3
27.7
42.7
173.1

8,674

13.6
17.2
30.3
169.7

(2) Consolidated financial position

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

As of Mar. 31, 2022
(Millions of yen)

As of Mar. 31, 2021
(Millions of yen)

115,71296,06482.9
796.1895,87389,75074,30282.7
616.0574,181

As of Mar. 31, 2022
(Millions of yen)

As of Mar 31, 2021
(Millions of yen)

6,985
(7,071)(2,070)22,16013,943(3,778)(1,103)23,308(3) Consolidated cash flow

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalent, end year

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)
2. Dividends
Year ended
Mar. 31, 2021
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, 2022
0.00
16.00
16.00
1,926
20.2
2.7

Annual dividends per share in yen
Year ending
Mar. 31, 2023 (Forecast)
0.00
0.00
33.00
33.00
33.00
33.00
3,973
20.0
37.5
4.7

3. Forecast for the year ending March 31, 2023 (Apr. 1, 2022 – Mar. 31, 2023)(Percentages indicate year-on-year changes for the full year and year-on-year changes for the quarter.)Six months ending Sep. 30, 2022
Net sales
Operating profit
Ordinary profit
Net income attributable toowners of the parent
Net income per share (in yen)※

(Millions of yen)
27,744
8,641
8,726
6,354

(%)
(12.1)(38.7)(38.7)(36.5)

52.77

Year ending Mar. 31, 2023
(Millions of yen)
55,30015,00015,10010,600(%)(18.3)(48.1)(46.9)(46.6)

88.03

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 in accounting policies other than 1)： No
3) Changes in accounting estimates： No4) Restatement： No
NOTE: For details, please refer to "(5) Notes to Consolidated Financial Statements (Changes in Accounting
Policies)" of "3. Consolidated Financial Statements and Primary Notes" on page 11 of the attached material.
(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, 2022
As of March 31, 2021
120,415,600
2) Number of treasury stocks at year end
As of March 31, 2022
As of March 31, 2021
3) Average number of outstanding shares
120,415,600
As of March 31, 2022
120,415,600
As of March 31, 2021

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated results for the year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(1) Non-consolidated Results of Operations
Year ended
Year ended
Mar. 31, 2022
Mar. 31, 2021
(Millions of yen)(%)
(Millions of yen)
Net sales
50,39848.7
33,885
Operating profit
21,931
126.3
9,693
Ordinary profit
25,063118.0
11,495
Net income
18,485
112.9
8,681

(%)
54.1
266,4
186.8
230.9

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)
Net income per share (in yen)
Fully diluted net income per share (in yen)

153.51-

72.10-(2) Non-consolidated Financial Position

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

As of Mar. 31, 2022
(Millions of yen)

As of Mar 31, 2021
(Millions of yen)

101,386
86,20485.0
715.8986,204

81,124
69,64585.9
578.3869,645<Reasons for the difference from the results of the previous fiscal year for the non-consolidated results>
In the fiscal year under review, due to strong sales of Reagents and CDMO, we have experienced a difference between
the actual results for the previous fiscal year and the actual results for the fiscal year under review.
※

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 Inc. (the “Company”) based on
information currently available to the Company and include a number of uncertainties. Actual results could differ fromthese 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 2 of the attached document.
The Company will hold a briefing for institutional investors and analysis on Tuesday, May 17, 2022. The material
handed out at this briefing and a review of questions and answers will be posted on our website after the briefing.

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)
Contents of the attached document
1. Overview of Financial Results for the year ended March 31, 2022…………………………………………….....................
(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 Change in Net Assets..............................................................................................................
(4) Consolidated Statements of Cash Flows ………………………………………………………………………................
(5) Notes to Consolidated Financial Statements…………………………………………………………………...................
(Notes on Premise of Going Concern) …………………………………………………………………………………..
(Significant Accounting Estimates)...................................................................................................................................
(Changes in Accounting Policies).....................................................................................................................................
(Changes in Presentation Methods)..................................................................................................................................
(Additional Information)………………………………………………..…………..…………..…………..…………...
(Segment Information)……………………………………………………………………………..……………….…...
(Per Share Information).....................................................................................................................................................
(Significant Subsequent Events).......................................................................................................................................
4. Supplementary Information…………………………………………………………………………………………………..
(1) Trends in Key Indicators for Business Management……………………………………………………………………..
(2) Comparative Consolidated Statement of Income ………………………………………………………………………..
(3) Comparative Statement of Income Relating to Consolidated Financial Forecasts……………………………………….

- 1 -

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2
2
2
2
4
5
5
7
7
8
9
10
11
11
11
11
11
11
12
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The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)
1. Overview of Financial Results for the year ended March 31, 2022
(1) Overview of Financial Results
The outlook for the global economy in the fiscal year under review is uncertain due to the impact of the new Coronavirus disease(COVID-19), the prolonged trade friction between the U.S. and China, and Russia’s invasion of Ukraine.
Under these circumstances, Takara Bio Group is promoting initiatives to advance the development of fundamental biologics
development technologies and become a biologics development company that continuously creates new modalities through theReagents and Instruments and CDMO business under the six-year Long-Term Management Plan FY2026, which ends in fiscal
2026, and the three-year Medium-Term Management Plan FY2023, which ends in fiscal 20231. In addition, the Group worked
aggressively to ensure a stable supply of PCR test-related products for the new Corona Virus and to establish a manufacturingsystem for regenerative medicine products, including vaccines.
In the fiscal year under review, although sales of Instruments and Gene Therapy decreased year on year, sales of Reagents and
CDMO increased year on year. In particular, sales of reagents for general research recovered from the Corona crisis, resulting inrecord-high sales, and PCR testing-related reagents for the new Coronavirus also recorded substantial growth. Net sales increased to¥67,699 million (up 46.9% year on year), and the cost of sales ratio improved. As a result, the cost of sales increased to ¥18,488
million (up 30.1% year on year), resulting in a gross profit of ¥49,211 million (up 54.4% year on year). Selling, general andadministrative (SG&A) expenses were ¥20,309 million (up 13.3% year on year), mainly due to an increase in personnel expenses
and R&D expenses. Operating profit was ¥28,902 million (up 107.1% year on year).
As a result of the increase in operating profit, ordinary profit increased to ¥28,459 million (up 101.0% year on year), income
before income taxes and others increased to ¥27,532 million (up 103.1% year on year), and net income attributable to owners of theparent increased to ¥19,849 million (up 107.9% 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 fiscal year under review were ¥115,712 million, an increase of ¥25,962 million from the end of theprevious fiscal year. This was mainly due to an increase of ¥13,999 million in merchandise and finished goods and an increase of¥5,218 million in trade receivables, and an increase of ¥6,629 million in property, plant and equipment mainly due to interior
finish work for a new office building in Takara Bio USA, Inc. and our manufacturing facilities acquisitions.
Total liabilities at the end of the fiscal year under review were ¥19,647 million, an increase of ¥4,199 million from the end of theprevious fiscal year. This was mainly due to increase of ¥2,352 million in accrued income taxes and ¥1,531 million in accrued
payable-other.
Total net assets at the end of the fiscal year under review were ¥96,064 million, an increase of ¥ 21,762 million from the end of
the previous fiscal year. This was mainly due to increases of ¥17,923 million in retained earnings and ¥3,737 million in foreign
currency translation adjustment due to the yen’s depreciation.
(3) Overview of Cash FlowsNet cash provided by operating activities amounted to ¥6,985 million, a decrease of ¥6,958 million from the previous fiscal year.
This was mainly due to cash inflow from income before income taxes and minority interests of ¥27,532 million and depreciation
and amortization of ¥3,554 million, and cash outflow from an increase in inventories of ¥14,233 million, income taxes paid of¥5,922 million, and an increase in trade receivables of ¥4,812 million.
Net cash used in investing activities was ¥7,071 million, an increase of ¥3,292 million from the previous fiscal year. This was
mainly due to proceeds from withdrawal of time deposits of ¥12,877 million, purchase of property, plant and equipment andintangible assets of ¥12,403 million, payments into time deposits of ¥11,406 million, and subsidies received of ¥3,960 million.
Net cash used in financing activities amounted to ¥2,070 million, an increase of ¥966 million from the previous fiscal year,
mainly due to cash dividends paid of ¥1,923 million.
As a result of the above, the balance of cash and cash equivalents at the end of the fiscal year under review, including the effectof exchange rate changes on cash and cash equivalents, decreased by ¥1,148 million from the end of the previous fiscal year to¥22,160 million.
(4) Future Outlook
Over the next fiscal year, sales are expected to decrease overall due to a decrease in demand for PCR testing-related reagents forthe new Coronavirus. In addition, operating income and ordinary income are expected to decrease from the previous fiscal year

1

FY2026 and FY2023 refer to the fiscal year ending March 31, 2026 and 2023, respectively.
- 2 -The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)
due to plans to increase personnel expenses, R&D expenses, etc. in selling, general and administrative (SG&A) expenses.
As a result, we forecast net sales of ¥55,300 million, operating profit of ¥15,000 million, ordinary profit of ¥15,100 million, andnet income attributable to owners of parent of ¥10,600 million.
See "4. Supplementary Information (3) Comparative Statement of Income Relating to Consolidated Results Forecasts" on page
15 for a comparison of the following consolidated financial year forecasts with the results for the year ended March 31, 2022.
In addition, the forecast for the next fiscal year is based on the assumption that the impact of the COVID-19 will continue for acertain period in fiscal 2022, and may fluctuate depending on circumstances. The Company will promptly disclose any necessary
revisions to its earnings forecasts.

- 3 -The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)
2. Basic Concept on Selection of Accounting Standards
The Group prepares its consolidated financial statements in accordance with Japanese GAAP, considering the comparability ofconsolidated financial statements between periods and between companies.
With regard to the application of IFRS, the Company's policy is to respond appropriately, taking into account various domestic andoverseas circumstances.

- 4 -The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)
3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Millions of yen)
As of Mar. 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Notes receivable-trade
Electronically recorded monetary claimsoperating
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
Land
Leased assets
Accumulated depreciation
Leased 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 assets
OthersTotal investments and other assets
Total non-current assets
Total assets- 5 -As of Mar. 31, 2022

25,993
12,626-

23,633
466
1,231

4,966
1,316
2,901
1,352
(41)
49,115

16,147
18,966
1,361
3,738
2,637
(40)
68,141

15,670(5,147)
10,522
7,058(3,760)3,297
7,673(5,141)
2,531
8,143
771
(87)
684
3,756
1,025
(194)
830
29,76623,553(5,937)
17,615
7,626(4,147)
3,479
9,530(5,516)
4,014
8,413
756
(125)
631
1,519
855
(161)
723
36,395

6,149
1,953
1,270
9,373

6,309
1,523
1,326
9,159

1,075
114
305
1,495
40,63589,750

1,539
123
352
2,015
47,571
115,712

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)(Millions of yen)
As of Mar. 31, 2022

As of Mar. 31, 2021
Liabilities
Current liabilities
Notes and accounts payable-trade
Lease obligations
Accrued payable-otherAccrued income taxes
Provision
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax 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 income
Non-controlling interests
Total net assets
Total liabilities and net assets

- 6 -

2,077
138
2,911
3,146
739
4,177
13,191

1,959
137
4,443
5,498
923
4,418
17,380

1,003
800
452
2,256
15,448

910
198
788
370
2,266
19,647

14,96532,89327,08574,945

14,96532,89345,00992,868

(529)

3,208

(234)

(204)

(763)
120
74,30289,7503,004
191
96,064
115,712

The original disclosure in Japanese was released on May 12, 2022 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, 2022

Year ended
Mar. 31, 2021
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 income
Interest income
Foreign exchange gains
Rent income from real estate
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Rent expenses on real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary gains
Gain on sale of fixed assets
National subsidies
Total extraordinary profit
Extraordinary losses
Loss on disposal of fixed assets
Asset shrinkage losses
Loss of valuation of inventory
Impairment loss
Loss on liquidation of business
OthersTotal 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- 7 -46,086
14,21431,872

67,69918,48849,211

17
4,577
424
191
5,545
7,163
17,91913,952

20
5,327
528
230
6,109
8,093
20,30928,902

113
2
128
63
308

122
141
94
357

24
54
21
101
14,159

23
706
61
8
800
28,459

1
517
518

6
4,470
4,476

99
517
458
50
1,125
13,552
4,297
(326)
3,971
9,581
34
9,547

174
4,470
589
168
5,403
27,532
7,901
(277)
7,624
19,90858
19,849

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)(Consolidated Statements of Comprehensive Income)(Millions of yen)
Year ended
March 31, 2022

Year ended
March 31, 2021
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

- 8 -

9,581

19,908

(974)
66
(907)
8,674

3,751
29
3,781
23,6898,648
25

23,617
71

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)(3) Consolidated Statements of Changes in Net Assets
Previous fiscal year (from April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders' equity

Balance at the
beginning of current
periodChange of items during
the period
Dividends fromsurplus
Net income
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

Accumulated other comprehensive income
NonTotal
Cumulative
accumulated Controlling
remeasurementsinterestotherof retirement
comprehensive
benefitincomeTotal
net assets

Share
CapitalCapitalsurplusRetainedearnings

Total
shareholders'equityForeigncurrencytranslation
adjustment

14,96532,89318,501

66,360

436

(963)

(963)

(963)

9,547

9,547

9,547

(300)

135

95

66,591

(965)

66

(898)

25

(873)

-

-

8,584

8,584

(965)

66

(898)

25

7,710

14,96532,89327,08574,945

(529)

(234)

(763)

120

74,302Current fiscal year (from April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity

Balance at the
beginning of current
periodChanges of items during
the period
Dividends fromsurplus
Net income
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

Accumulated other comprehensive income
NonTotal
Cumulative
accumulated controlling
remeasurementsinterests
otherof retirement
comprehensive
benefitincomeTotal
net assets

Share
CapitalCapitalsurplusRetainedearnings

Total
shareholders'equityForeigncurrencytranslation
adjustment

14,96532,89327,08574,945(529)(1,926)(1,926)(1,926)

19,84919,84919,849

(234)

(763)

120

74,302

3,737

29

3,767

71

3,839

-

-

17,923

17,923

3,737

29

3,767

71

21,762

14,96532,89345,00992,868

3,208

(204)

3,004

191

96,064- 9 -The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)(4) Consolidated Statements of Cash Flows(Millions of yen)

Year ended
Mar. 31, 2021
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 reserve for bonuses
Increase (decrease) in retirement benefit liabilities
Interest income
Interest expenses
Loss (gain) on sale and retirement of fixed assets
Loss on liquidation of business
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in other current liabilities
OthersSubtotalInterest and dividend income received
Income expenses paid
Income taxes paid
Subsidies received
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
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
Subsidies received
OthersNet 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- 10 -

Year ended
Mar. 31, 2022
13,552
3,220
80
486
(14)
190
16
(113)
24
97
458
(3,559)(1,767)
1,016
2,416
(573)
15,533107(24)(1,854)
181
13,943

27,532
3,554
168
95
500
(3)
144
(12)
(122)
23
168
(4,812)(14,233)
(431)
81
(526)
12,127133(23)(5,922)671
6,985(2,613)
3,766
2,000

(11,406)
12,877-(8,687)(12,403)

14

47

(158)
1,900
(0)
(3,778)

(136)
3,960
(10)
(7,071)

(962)
(140)
(1,103)(215)
8,845
14,462
23,308(1,923)(147)(2,070)1,008(1,148)23,30822,160

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
No items to report.
(Significant Accounting Estimates)(Goodwill)
Our group recorded goodwill at Takara Bio USA, Inc., which was recorded in the past upon the acquisition of all of the shares of
Clontech Laboratories, Inc., Rubicon Genomics, Inc. and WaferGen Bio-systems, Inc., respectively.
(1) Amounts recorded in the consolidated financial statements for the current fiscal year
(Millions of yen)
Current Consolidated
Fiscal Year
Goodwill

6,309(2) Information on the content of critical accounting estimates for identified items
Takara Bio USA, Inc. determines as a reporting unit, including goodwill, and performs procedures to determine indicators of
impairment. The recoverable amount of the reporting unit is based on its fair value. Fair value is determined primarily based on the
discounted present value of estimated future cash flows, which utilize assumptions such as future growth rates to estimate suchcash flows.
As the recoverable amount sufficiently exceeds the carrying amount at the end of the fiscal year under review, the Company
considers that it is unlikely that a material impairment loss will occur even if there is a reasonable range of changes in future growth
rates and other factors used in the calculation of the recoverable amount.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition)
The Company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020, hereinafterreferred to as the "Revenue Recognition Accounting Standard") from the beginning of the fiscal year under review and recognizedrevenue when control of promised goods or services is transferred to customers in an amount that is expected to be received in
exchange for those goods or services.
With regard to the application of the Revenue Recognition Accounting Standards, in accordance with the transitional treatment
stipulated in the provisions of paragraph 84 of the Accounting Standard for Revenue Recognition, the cumulative effect ofretrospective application of a new accounting policy prior to the beginning of the fiscal year under review has been adjusted toretained earnings at the beginning of the fiscal year under review, and a new accounting policy has been applied from the beginningof the fiscal year under review.
In addition, "Notes and accounts receivable-trade," which was presented in "Current assets" in the consolidated balance sheets forthe previous fiscal year, is included in "Notes receivable-trade," "Electronically recorded monetary claims-operating," and"Accounts receivable-trade" from the current fiscal year. However, in accordance with the transitional treatment set forth inparagraph 89-2 of the Accounting Standard for Revenue Recognition, no reclassifications have been made to the prior fiscal year
under the new presentation method.
As a result, there was no impact on profit or loss for the current fiscal year. In addition, there is no impact on the balance of retained
earnings at the beginning of the fiscal year.
(Change in Presentation Method)
Statement of Profit or Loss
(Non-operating expenses)"Costs of idle fixed assets" under non-operating expenses, which had been stated separately in the previous fiscal year, has been
included in "Other" from the fiscal year under review, as the amount has become immaterial.
To reflect this change in presentation, the consolidated financial statements for the previous fiscal year have been reclassified.
As a result, ¥18 million, which was presented as "Costs of idle fixed assets" under non-operating expenses in the consolidated
statements of income for the previous fiscal year, has been reclassified as "Other."(Additional Information)(Accounting Estimates for the Impact of the COVID-19)- 11 -

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)
Based on information available at the time of preparation of the consolidated financial statements for the fiscal year under review,
it is assumed that the impact of the COVID-19 on our Group will continue for a certain period in fiscal 2022. The Company
makes estimates and judgments regarding the impairment of goodwill and the recoverability of deferred tax assets at the end of
the fiscal year based on the assumptions described above. However, no indicators of impairment have been identified for goodwill,
and the Company has determined that no additional valuation allowance is required for the recoverability of deferred tax assets.
Due to the high degree of uncertainty associated with the impact of the COVID-19, any change in the above assumptions could
have an impact on the Group's financial condition and results of operations.
(Segment Information)
Since our group is a single segment, this information is omitted.
(Per-Share Information)
End of previous fiscal year
(From April 1, 2020 to March 31, 2021)

Current Consolidated Fiscal Year
(From April 1, 2021 to March 31, 2022)

Net assets per share¥616.05¥796.18

Net income per share¥79.29¥164.84(NOTE)

1. Diluted net income per share is not presented because there were no dilutive shares.
2. The basis for calculating net income per share is as follows.
End of previous fiscal year
(From April 1, 2020 to March 31, 2021)

Current Consolidated Fiscal Year
(From April 1, 2021 to March 31, 2022)

Profit attributable to owners of parent(Millions of yen)

9,547

19,849Amounts not attributable to common
stock (Millions of yen)--

Profit attributable to owners of parent
attributable to common stock(Millions of yen)

9,547

19,849Average number of shares of common
stock outstanding during the period(Thousands of shares)

120,415

120,415

Net income per share(Significant Subsequent Events)
Not applicable.

- 12 -

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)
4. Supplementary Information(1)Trends in Key Indicators for Business Management
1) Cash Flows(Millions of yen)
Year ended Mar. 31, 2021
(Apr. 1, 2020 – Mar. 31, 2021)
Cash flow from operating
activities
Cash flow from investing
activities
Cash flow from financing
activities

Year ended Mar. 31, 2022
(Apr. 1, 2021 – Mar. 31, 2022)
13,943

6,985(3,778)(7,071)(1,103)(2,070)2) Sales Breakdown by Region(Millions of yen)
Year ended Mar. 31, 2021
(Apr. 1, 2020 – Mar. 31, 2021)

Year ended Mar. 31, 2022
(Apr. 1, 2021 – Mar. 31, 2022)

Japan

20,47534,076

United States

7,862

10,186China
Asia excluding Japan and
China
Europe8,415

11,908

4,917

6,614

3,743

4,668

671

244

46,086

67,699OthersTotal3) R&D Expenses by Reportable Segment
Since our group is a single segment, this information is omitted.

- 13 -

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)(2) Comparative Consolidated Statement of Income(Rounded down to one million yen)
Year ended
Mar. 31, 2021

Year ended
Mar. 31, 2022

Y/Y
Change

Y/Y
Ratio

Reagents

35,18954,605

19,41655.2%

Instruments

1,726

1,518

(208)

(12.1%)CDMO(Net sales)

8,901

11,426

2,525

28.4%

Gene therapy

268

148

(119)

(44.5%)

Total net sales

46,086

67,69921,61346.9%

Net sales

46,086

67,69921,613

46.9%

Cost of sales

14,214

18,488

4,274

30.1%

Gross profit

31,872

49,211

17,33954.4%

SG & A expenses

17,91920,309

2,390

13.3%

742

755

13

1.8%

(Operating profit and Loss)

Transportation expenses
Advertising expenses

57

58

0

1.4%

Promotion expenses

676

683

7

1.1%

R&D expenses

5,545

6,109

564

10.2%

Administrative expense, other

10,496

12,153

1,657

15.8%

401

548

146

36.5%

13,952

28,902

14,949107.1%

Non-operating income

308

357

49

16.2%

Non-operating expenses

101

800

699

691.6%

14,15928,45914,299101.0%

Extraordinary gains

518

4,476

3,957

763.2%

Extraordinary losses

1,125

5,403

4,278

380.1%

Income before income taxes and others

13,552

27,532

13,979103.1%

Income taxes

3,971

7,624

3,653

92.0%

Net income

9,581

19,908

10,326107.8%Net income (loss) attributable to non-controllinginterests

34

58

23

69.9%

Net income attributable to owners of the parent

9,547

19,84910,302

107.9%

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

3,220

3,554

334

10.4%

Enterprise taxes (external standards taxation)
Operating profit(Non-operating income and Expenses)

Ordinary profit(Extraordinary gains & Losses)

Amortization of goodwill
486
500
14
2.9%
※ From the first quarter of the current fiscal year, the names of the categories of net sales have been changed from "Research reagents","Scientific instruments" and "Contract services" to "Reagents", "Instruments" and "CDMO".

- 14 -

The original disclosure in Japanese was released on May 12, 2022 at 15:00 (GMT+8)(3) Comparative Statement of Income Relating to Consolidated Financial Forecasts
Year ended Mar. 31,
2022

Year ending Mar. 31,
2023 Forecast

52,47941,010(Rounded down to one million yen)
Y/Y
Y/Y Change
Ratio(Net sales)
Reagents(11,468)(21.9%)

Instruments

1,518

1,471

(47)

(3.1%)

CDMO

11,426

10,212(1,214)(10.6%)

Gene therapy

2,275

2,606

331

14.6%

Total Net Sales

67,69955,300(12,399)(18.3%)Net sales

67,69955,300(12,399)(18.3%)

Cost of sales

18,48817,444(1,044)(5.6%)

Gross profit

49,21137,855(11,355)(23.1%)

SG & A expenses

20,30922,855

2,546

12.5%

755

748

(7)

(0.9%)(Operating profit and Loss)

Transportation expenses
Advertising expenses

58

91

33

56.8%

Promotion expenses

683

899

215

31.5%

6,109

7,820

1,711

28.0%

12,153

12,877723

6.0%

R&D expenses
Administrative expenses, other
Enterprise taxes(external standards taxation)
Operating profit(Non-operating income andExpenses)Non-operating income

548

418

(129)

(23.6%)

28,902

15,000(13,902)(48.1%)

357

211

(146)

(40.8%)

Non-operating expenses

800

111

(688)

(86.0%)

28,45915,100(13,359)(46.9%)

Extraordinary gains

4,476

250

(4,226)(94.4%)

Extraordinary losses
Income before income taxes
and others
Income taxes

5,403

55

(5,347)(99.0%)

27,532

15,294(12,237)(44.4%)

7,624

4,648

(2,975)(39.0%)

19,908

10,645(9,262)(46.5%)

58

45

(12)

(21.4%)

19,84910,600(9,249)(46.6%)

3,554

4,282

727

20.5%

500

514

14

2.8%

Ordinary profit(Extraordinary gains & Losses)

Net income
Net income (loss) attributable
to non-controlling interests
Net income attributable toowners of parent
Depreciation and amortization(Property, plant andequipment and intangible
assets)Amortization of goodwill※ The sales of GMP-grade reagents and the resembling which are used for manufacturing regenerative medicine products included in“Reagents” until the year ended of March 31, 2022 have been included in “Gene therapy ” since the year ending March 31, 2023.
The results for the year ended March 31, 2022 in this table have been reclassified to reflect these changes.

- 15 -