The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)

Consolidated Financial Statements for the Third Quarter Ended December 31, 2018
FY2019 (April 1, 2018 - March 31, 2019) [UNAUDITED]January 30, 2019
Takara Bio Inc.
Tokyo Stock Exchange (1st section)4974
http://www.takara-bio.com/
Koichi Nakao, President
Shuichiro Matsuzaki, Executive Vice President
Tel. (077) 565-6970
Quarterly statement filing date (as planned)
February 8, 2019
Scheduled date of starting delivery of dividends:
Supplementary documents of the financial results
Yes
Financial results information meeting:No
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 nine months ended December 31, 2018 (Apr. 1, 2018 – Dec. 31, 2018)(1) Operating results(Percentages indicate changes from the same period of the previous fiscal year.)Nine months ended
Dec. 31, 2018
Net sales
Operating income
Ordinary income
Net income (loss) attributable to owners of theparent
Net income per share (in yen)
Fully diluted net income per share (in yen)
Note: Comprehensive income(Millions of yen)
25,888
3,432
3,549
2,088
17.35
1,776

Nine months ended
Dec. 31, 2017
(%)

(%)

14.3
113.4
101.4
95.4

(Millions of yen)
22,646
1,608
1,762
1,068

9.7
(41.0)(38.6)(31.5)(118.8%)

8.88
811

(-%)

(2) Financial position
As of Dec. 31, 2018
(Millions of yen)

As of Mar. 31, 2018
(Millions of yen)

Total assets
70,70568,670Net assets
63,193
61,959Equity ratio (%)
89.2
90.1
Net assets per share (in yen)523.97513.66(Reference) Equity
63,09461,852
Notes: Partial revision of accounting standard related to tax effect accounting (Article 28 on corporate accounting standard, February
16, 2018) has been applied from the beginning of the year ending March 31, 2019. Accordingly, financial position for the year
ended March 31, 2018 indicates the numerical value after retroactive adjustment due to this revision.

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)
2. Dividends
Annual dividends per share in yen
Year ending Mar. 31,
Year ending Mar. 31,
20192019 (Forecast)First quarter end
Second quarter end
0.00
0.00
Third quarter end
Year end
4.50
7.00
Annual4.50
7.00
Note: Revision of dividend payment forecast since the most recently announced payment forecast ： Yes
Year ended Mar. 31,
2018

3. Forecast for the year ending March 31, 2019 (Apr. 1, 2018 – Mar. 31, 2019)(Percentages indicated changes from the same period of the previous fiscal year.)Year ending Mar. 31, 2019
(Millions of yen)(%)
Net sales
35,800Operating income
5,200
Ordinary income
5,400
Net income attributable to owners of the parent
3,150
Net income per share (in yen)
26.16
Note: Revision of financial forecast since the most recently announced financial forecast ： Yes

10.8
46.2
39.8
34.9

※ Others(1) Changes in subsidiaries during the nine months ended Dec. 31, 2018
(Changes in specified subsidiaries resulting in change of scope) ： No
Newly included: - (Name)
Excluded: - (Name)(2) Application of special accounting methods to the consolidated quarterly financial statements： No(3) Changes in accounting policies, changes in accounting estimates, and retrospective restatement①Changes based on revisions of accounting standard： No②Changes other than ones based on revisions of accounting standard： No③Changes in accounting estimates： No④Restatement： No(4) Number of outstanding shares (Common stock)① Number of outstanding shares at year end (Treasury stocks are included)
120,415,600
As of December 31, 2018
As of March 31, 2018
120,415,600② Number of treasury stocks at year end
As of December 31, 2018
As of March 31, 2018
③ Average number of outstanding shares (Quarterly total)
120,415,600
As of December 31, 2018
120,415,600
As of December 31, 2017
※ These quarterly 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 based on information currently
available to the Company and include a number of uncertainties. Actual results could differ from these forecasts due tochanges in conditions that occur in the future. For information regarding the above, please refer to “1. Qualitative
Information for the nine months ended December 31, 2018 (4) Qualitative Information Regarding Consolidated Forecasts,
on page 3 of the attached document”.
(Change in calendar indication)
Calendar indication has been changed from Japanese style to western style since Consolidated Financial Statements for the firstquarter ended June 30, 2018.

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)
Contents of the attached document
1. Qualitative Information for the nine months ended December 31, 2018………………………………………………..........
(1) Consolidated Financial Results……………………………………………………………………………………………
(2) Consolidated Financial Position…………………………………………………………………………………………...
(3) Consolidated Cash Flows………………………………………………………………………………………………….
(4) Qualitative Information Regarding Consolidated Forecasts………………………………………………………………
2. Consolidated Quarterly Financial Statements and Primary Notes…………………………………………………………….
(1) Consolidated Quarterly Balance Sheets…………………………………………………………………………………...
(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income…….
(Consolidated Quarterly Statements of Income) …………………………………………………………………...........
(For the nine months ended December 31, 2018)(Consolidated Quarterly Statements of Comprehensive Income) ………………………………………………………
(For the nine months ended December 31, 2018)(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)………………………………………………..
(Additional Information)…………………………………………………………………………………………………
(Segment Information) …………………………………………………………………………………………………..
(Significant Subsequent Events)…………………………………………………………………………………………
3. Supplementary Information …………………………………………………………………………………………………..
(1) Trends in Key Management Indicators……………………………………………………………………………………
(2) Comparative Consolidated Statement of Income …………………………………………………………………………
(3) Comparative Statement of Income Relating to Consolidated Earnings Forecast…………………………………………

- 1 -

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2
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3
3
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4
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6
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9
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The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)
1. Qualitative Information for the nine months ended December 31, 2018
(1) Consolidated Financial Results
In the nine months ended December 31, 2018, although the Japanese economy continued to maintain a moderate recovery as
personal consumption and corporate earnings improved, the future economy continues to be unpredictable due to the trade friction
issue in the U.S. and China, influence of financial and capital markets and others.
Under this circumstances, the three-year Takara Bio’s Medium-Term Management Plan FY2020 started in FY2018 aims tostrengthen the three business segments: the Bioindustry Business, the Gene Therapy Business, and the Agribio Business andbusiness bases which support them to enhance standing of the Takara Bio Company (the Company) as a global enterprise andregenerative medical product company and, further, to achieve prodigious growth. Under this overall policy, the Company promoted
initiatives to achieve the operating income of ¥6.0 billion as the target for fiscal 2020, final year of the revised Medium-Term
Management Plan.
As a result, overall net sales increased 14.3% year on year to ¥25,888 million, on contributions from sales for core research
reagents exceeding those of the same period of the previous fiscal year and receipt of licensing fees for co-development/exclusive
sales related to NY-ESO-1・siTCRTM and CD19・CAR gene therapy products. Cost of sales increased 10.8% year on year to¥10,947 million, and gross profit increased 17.0% year on year to ¥14,940 million. Selling, general and administrative (SG&A)
expenses increased 3.1% year on year to ¥11,507 million due to the increase in personnel costs, but operating income increased
113.4% year on year to ¥3,432 million.
Accompanied with the increase in operating income, ordinary income increased 101.4% year on year to ¥3,549 million, income
before income taxes and minority interests increased 55.2% year on year to ¥2,703 million, and net income attributable to ownersof the parent increased 95.4% to ¥2,088 million.
The statuses of the Company business segments are as follows.
Bioindustry Business
Given the ever-widening activities of biotechnology R&D, the Company has positioned the Bioindustry Business as its corebusiness, which mainly develops and provides products and services supporting such R&D activities.
In the nine months ended December 31, 2018, sales of the contracted service and the scientific instruments in addition to the coreresearch reagents increased year on year.
As a result of the above, sales to external customers for this business increased 7.7% year on year to ¥21,984 million, and grossprofit increased 7.7% year on year to ¥12,691 million due to the increase of net sales. SG&A expenses increased 5.8% year on yearto ¥8,553 million, but the Company recorded operating income up 12.0% year on year to ¥4,138 million.
Gene Therapy Business
The business focuses on clinical development of gene therapies for diseases such as cancer. These therapies represent the
oncolytic virus therapy utilizing canerpaturev (Abbreviated to C-REV, Former HF10) and the engineered T cell therapy
utilizing the original Takara Bio technologies such as the RetroNectin ® method for a high efficiency gene transduction;
the RetroNectin ® expansion-culture system for a high efficient expansion for lymphocytes; as well as siTCR TM.
In the nine months ended December 31, 2018, the licensing fees for domestic co-development and exclusive sales related to NYESO-1・siTCRTM and CD19・CAR gene therapy products and sales of the therapeutic products based on the agreement was
generated.
As a result, net sales to external customers for this business increased 360.9% year on year to ¥2,304 million, and gross profit
increased 273.3% year on year to ¥1,886 million. SG&A expenses decreased 23.2% year on year to ¥1,000 million due to thedecrease R&D expenses. Accordingly, operating income has been highly improved to ¥885 million, compared with operating lossof ¥802 million in the same period of previous fiscal year.
AgriBio BusinessThis business uses its unique leading-edge biotechnology to identify the scientific basis of foodstuffs. Based on this evidence, it
develops, manufactures, and sells functional food ingredients. The AgriBio Business focuses on rolling out products related to
Gagome kombu (kelp)-derived “Fucoidan,” agar-derived agaro-oligosaccharide, Ashitaba (Angelica herb)-derived “Chalcone,” theherb (Peucedanum japonicum)-derived "Isosamidin," Yam, (Dioscorea esculenta)-derived “Yamsgenin”, and mushroom.
In the nine months ended December 31, 2018, net sales of functional foods-related products and mushroom-related products
declined year on year.
Consequently, net sales to external customers for this business decreased 8.1% year on year to ¥1,599 million, and gross profit
decreased 25.0% to ¥361 million. SG&A expenses decreased 98.4% year on year to ¥365 million due to the decrease in promotion

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)
expenses, and operating loss was ¥3 million, compared with operating income of ¥110 million in the same period of previous fiscal
year.
The Company’s functional food business has been succeeded to Shionogi Healthcare Co., Ltd. (Shionogi Healthcare) pursuant tothe simplified absorption-type company split with the effective date of January 1, 2019. For details, refer to “2. Consolidated
Quarterly Financial Statements and Primary Notes and (4) Notes to Consolidated Quarterly Financial Statements (Significant
Subsequent Events)”.
Further, the Company resolved at the meeting of the Board of Directors pursuant to which the Company would transfer theCompany’s Mushroom business to Yukiguni Maitake Co., Ltd. with the effective date of March 1, 2019 (planned), and entered into
an agreement relating to business transfer on December 17, 2018. For details, refer to” 2. Consolidated Quarterly Financial
Statements and Primary Notes and (4) Notes to Consolidated Quarterly Financial Statements (Additional Information)”.
(2) Overview of Financial Position for the nine months ended December 31, 2018
In the nine months ended December 31, 2018, total assets were ¥70,705 million, an increase of ¥2,034 million compared with thatat the end of the previous fiscal year. This increase primarily resulted from increases of ¥2,062 million in inventories such as
merchandise and finished goods, etc. and ¥2,335 million in construction in progress despite decreases of ¥992 million in notes andaccounts receivable-trade and ¥940 million in intangible assets.
Total liabilities were ¥7,511 million, an increase of ¥799 million compared with that at the end of the previous fiscal year. This
increase primarily resulted from increases of ¥245 million in notes and accounts receivable-trade and ¥536 million in other advancereceived of current liabilities.
Total net assets stood at ¥63,193 million, an increase of ¥1,234 million compared with that at the end of the previous fiscal year.
The main factors were an increase of ¥1,546 million in retained earnings despite a decrease of ¥324 million in foreign currencytranslation adjustment.
(3) Overview of Cash Flows for the nine months ended December 31, 2018
Net cash provided by operating activities was ¥4,174 million, up by ¥3,560 million compared with the previous fiscal year. Thiswas primarily due to an increase of ¥961 million in income before taxes and minority interests and a decrease of ¥932 million incurrent liabilities.
Net cash provided by investing activities was ¥3,564 million, a decrease of ¥9,601 million compared with the previous fiscal
year. This was primarily due to the elimination of ¥12,396 million from purchase of shares of subsidiaries accompanying changes
in the scope of consolidation occurred in the previous fiscal year.
Net cash used in financing activities was ¥541 million, a decrease of ¥525 million compared with the previous fiscal year. Thiswas primarily because of the elimination of ¥546 million in redemption bonds occurred in the same period of previous fiscal year.
As a result of the above, balance of cash and cash equivalents for the nine months ended December 31, 2018, including the effectof exchange rate change on cash and cash equivalents, stood at ¥10,077 million, up ¥26 million from the previous fiscal year-end.
(4) Overview of Qualitative Information Regarding Consolidated Forecasts
As for consolidated financial forecast for FY2019, the Company has revised the financial forecast and dividend forecast disclosed
on November 6, 2018. For details, refer to “Notice Regarding Forecast Revisions of the Financial Results and Dividend (Dividend
Increase)” disclosed today (January 30, 2019).

- 3 -The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)
2. Consolidated Quarterly Financial Statements and Primary Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
As of Mar. 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent 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
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 noncurrent assets
Total assets

As of Dec. 31, 201817,537
8,031
2,000
4,484
334
1,192
978
(42)
34,51618,183
7,039
2,000
5,524
973
1,575
882
(46)
36,134

12,825(5,611)
7,214
7,561(5,360)2,201
7,080(4,613)
2,466
6,588
16
(16)
－
63
18,534

12,355(5,806)
6,549
7,152(5,346)1,805
7,362(5,069)
2,292
6,379
16
(16)
－
2,398
19,426

8,259
5,903
14,163

7,910
5,312
13,222

1,456
1,456
34,154
68,6701,920
1,920
34,57070,705

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)(Millions of yen)
As of Dec. 31, 2018

As of Mar. 31, 2018
Liabilities
Current liabilities
Notes and accounts payable-trade
Accrued income taxes
Provision
Other
Total current liabilities
Noncurrent liabilities
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Noncontrolling interests
Total net assets
Total liabilities and net assets

- 5 -

1,875
431
333
3,104
5,745

2,120
478
505
3,463
6,567

659
307
966
6,711

670
273
943
7,511

14,96532,893
12,28560,144

14,96532,893
13,832
61,691

2,042
(334)
1,707
106
61,95968,670

1,717
(314)
1,402
99
63,19370,705

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income(Consolidated Quarterly Statements of Income)(For the nine months ended June 30, 2018)(Millions of yen)
Nine months ended
Dec. 31, 2018

Nine months ended
Dec. 31, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Employees' salaries and bonuses
Retirement benefit expenses
R&D expenses
Provision for allowances
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gains
Subsidy income
Rent of real estate
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Real estate leasing expense
Dormant fixed asset cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Insurance proceeds due to disaster
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of noncurrent assets
Impairment losses
Loss due to disaster
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income (loss) attributable to the noncontrollinginterest
Net income attributable to owners of the parent

22,646
9,879
12,76625,888
10,947
14,940

2,744
133
3,417
120
4,742
11,157
1,608

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

55
38
51
65
24
236

63
－
52
67
16
201

18
－
22
40
1
82
1,762

－
45
28
7
3
84
3,549

0
0
0

0
54
55

20
－
－
20
1,742
555
119
674
1,067

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

(1)

3

1,068

2,088

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)(Consolidated Quarterly Statements of Comprehensive Income)(For the nine months ended December 31, 2018)(Millions of yen)
Nine months ended
Dec. 31, 2018

Nine months ended
Dec. 31, 2017
Net income
Other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of
the parent
Noncontrolling interest

- 7 -

1,067

2,091

(295)
39
(255)
811

(335)
19
(315)
1,776

813

1,784

(1)

(7)

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)(3) Consolidated Quarterly Statements of Cash Flows(Millions of Yen)

Nine months ended
Dec. 31, 2017
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Depreciation and amortization on other
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other provision
Increase (decrease) in net defined benefit liability
Interest income
Interest expenses
Loss (gain) on sales and retirement of noncurrent
assetsLoss due to disaster
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments for time deposits
Proceeds from time deposits
Purchase of marketable securities
Proceeds of from sales and redemption of securities
Purchase of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Purchase of other depreciable assets
Proceeds from business transfer
Purchase of shares of subsidiaries accompanying
changes in the scope of consolidation
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Repayments of long-term debt
Redemption of bonds
Cash dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Nine months ended
Dec. 31, 2018
1,742
1,896
－
106
364
12
(382)
33
(55)
18

2,703
2,014
696
118
374
4
168
10
(63)
－

20

71

－

131

584

926

(1,508)(2,326)

(133)

308

(1,029)
(157)
1,512
74
(0)
(999)
587

(97)
(63)
4,978
63
－
(894)
4,147

(7,127)
6,596－－(6,930)6,173(2,000)
2,000

(909)

(3,242)

457

6

(48)
－

(84)
525

(12,396)－281(13,147)

7(3,546)

(13)
(546)
(480)
(26)
(1,067)

－
－
(541)
－
(541)

(217)

(33)

(13,845)
22,2008,355

2610,051
10,077

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)(4) Notes to Consolidated Quarterly Financial Statements(Notes on Premise of Going Concern)
No items to report.
(Notes in case of Changes in Marked Amount of Shareholders’ Equity)
No items to report.
(Additional Information)(Application of partial revision of accounting standard related to tax effect accounting)Partial revision of accounting standard related to tax effect accounting (Article 28 on corporate accounting standard, February 16,2018) has been applied at the beginning of period for the three months ended June 30, 2018, and category statement to investments
and other assets for deferred tax assets and to noncurrent liabilities for deferred tax liability has been made.
(Agreement Execution Relating to Business Transfer)
The Company made a resolution at the meeting of the Board of Directors held on December 17, 2018 pursuant to which theCompany would transfer the Company’s Mushroom business to Yukiguni Maitake Co., Ltd. with the effective date of March 1,
2019 (planned), and entered into an agreement relating to business transfer on December 17, 2018.
The outline of agreement relating to business transfer is as follows.
①

Reason of Business Transfer
The Company aims to fulfill “selection and concentration” in business operation and create high corporate value.

②

Description of Business Transfer
 All shares of Mizuho Norin Co., Ltd. owned by the Company
 All shares of KINOKO CENTER KIN INC. owned by the Company
 Intellectual property relating to Mushroom business owned by the Company③

Name of Successor Company
Yukiguni Maitake Co., Ltd.

④

Transfer Date
March 1, 2019 (planned)(Segment Information)
I. Equivalent period of previous fiscal year (From Apr. 1, 2017 to Dec. 31, 2017)
1. Net sales and income (loss) by reportable segment(Millions of yen)Amount recognized in
Adjustment consolidated quarterly(Note: 1)statement of income(Note: 2)

Bioindustry

Gene
Therapy

AgriBio

20,405
－

500
－

1,740
5

22,6465(5)22,646－

20,405500

1,745

22,651(5)

22,646Total

Net sales
External customers
Corporate
Total－

Segment income (loss)
3,696
(802)
3,004
(1,395)
1,608
110
Notes: 1. The adjustment for segment income was a loss of ¥1,395 million comprising of the Company not allocated toreportable segments. Expenses of the Company primarily consist of general and administrative expenses and R&D
expenses not attributed to reportable segments.
2. Segment income (loss) has been adjusted to the operating income of consolidated quarterly financial statements.
2.

Noncurrent asset impairment losses and goodwill, and others of each reportable segment(Significant impairment losses concerning noncurrent asset)
No items to report.
(Significant changes in the amount of goodwill)
In Bioindustry business, the wholly owned subsidiary Takara Bio USA Holdings Inc. acquired shares of WaferGen Bio-systems,
Inc. and Rubicon Genomics, Inc., and thereby the Company allocated the goodwill. Based on this, the increased amount of
goodwill was ¥7,713 million for the nine month ended December 31, 2018. This amount is based on tentative calculation due
to incompleteness of distribution of acquisition costs.
- 9 -The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)
II. Nine months ended December 31, 2018 (From Apr. 1, 2018 to Dec. 31, 2018)
1. Net sales and income (loss) by reportable segment(Millions of yen)Amount recognized in
Adjustment consolidated financial(Note: 1)statements(Note: 2)

Bioindustry

Gene
Therapy

AgriBio

21,984
－

2,304
－

1,599
－

25,888－－－25,888－21,984

2,304

1,599

25,888－25,888Total

Net sales
External customers
Corporate
Total

Segment income (loss)
4,138
885
(3)
5,020
(1,587)
3,432
Notes: 1. The adjustment for segment income was a loss of ¥1,587 million comprising of the Company not allocated toreportable segments. Expenses of the Company primarily consist of general and administrative expenses and R&D
expenses not attributed to reportable segments.
2. Segment income (loss) has been adjusted to the operating income of consolidated quarterly financial statements.
2. Noncurrent asset impairment losses and goodwill , and others of each reportable segment(Significant impairment losses concerning noncurrent asset)
In the AgriBio business, impairment loss related to assets subject to the relevant business to be idled and business transfer
planned has allocated as extraordinary loss. Amount allocated as impairment loss was ¥696 million for the nine month ended
December 31, 2018.
(Significant changes in the amount of goodwill)
No items to report.
(Significant Subsequent Events)(Business Divestiture of Functional Food Business)
The Company has succeeded its functional food business to Shinogi Healthcare Co., Ltd (Shionogi Healthcare) pursuant tothe simplified absorption-type company split with the effective date of January 1, 2019.
1. Outline of Business Divestiture(1) Successor Company Name and Business Description① Successor company name: Shionogi Healthcare Co., Ltd② Description of business divestiture: Functional food business(2) Reason of Business Divestiture
The Company’s Medium-Term Management Term Management Plan 2020 started in 2020 started in 2017 aims topromote three businesses: Bioindustry, Gene Therapy, and AgriBio businesses, to enhance the Company’s standing as a
global enterprise and regenerative medical product company, and to achieve prodigious growth.
Under the plan, the Company engaged in the business in line with its growth strategy. Through activities based onrecent progress in the business environment, it is considerably more important in creating high corporate value, with theaim of fulfilling “selection and concentration” in business operation and achieving the plan. With this background, theCompany has been seeking a company to continue the business maximizing the use of corporate resource such as
research achievements, etc. accumulated in the functional food business. As a result of discussion and negotiations withShionogi Healthcare, a group company of Shionogi & Co., Ltd. strengthening the functional food business, the Company
decided to implement a business reorganization by the company split.
(3) Divestiture Date
January 1, 2019(4) Matters related to Summary of Other Transactions with Regal Form
This is an absorption-type company split in which the Company is the splitting company and Shionogi Healthcare is
the successor company. Transaction of compensation receivable is done in cash.
2. Outline of Account Processing Conducted(1) Amount of Profit and Loss on Transfer (Planned)
Profit on business transfer
71 million yen(2) Book Value of Assets and Liabilities for Business Transfer and Major Description (Planned)
Current assets(Millions of yen)400

Non-current assets
Total assets

143
544

Current liabilities
Non-current liabilities

110

Total liabilities

11

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)(3) Account Processing
Balance between compensation received in cash based on the transfer and equivalents to shareholder’s equity in thebusiness divestiture is deducted the divestiture fees to assess the profit and loss on transfer.
3.

Reportable Segment involved in business divestiture
Functional food business

4.

Estimated Amount of Profit and Loss on Business Divestiture on Consolidated Quarterly Financial Statements forthe nine months ended December 31, 2018
Net sales

409 million yen

Operating income
3.

9 million yen

Supplementary Information(1) Trends in Key Management Indicators①Cash Flow

(Millions of yen)

Nine months ended

Term

Nine months ended
Year ended Mar. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
(Apr. 1, 2017 - Mar. 31, 2018)(Apr. 1, 2017 - Dec. 31, 2017) (Apr. 1, 2018 - Dec. 31, 2018)

Net cash provided by (used in)

587

4,147

3,935

(13,147)(3,546)(14,755)(1,067)(541)(1,205)operating activities
Net cash provided by (used in)investing activities
Net cash provided by (used in)financing activities②Net Sales by Region(Millions of yen)
Nine months ended
Dec. 31, 2017

Nine months ended
Dec. 31, 2018Year ended Mar. 31, 2018

(Apr. 1, 2017 - Dec. 31, 2017) (Apr. 1, 2018 - Dec. 31, 2018)(Apr. 1, 2017 - Mar. 31, 2018)

Japan

9,674

11,303

14,266

U.S.

5,354

6,033

7,240

China

3,922

4,547

5,524

Asia excluding Japan and
China

1,313

1,469

1,754

Europe

2,203

2,351

3,257

Other

178

181

268

Total

22,64625,88832,312③R&D Expenses by Reportable Segment(Millions of yen)

Nine months ended

Nine months ended

Year ended Mar. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
(Apr. 1, 2017 - Mar. 31, 2018)(Apr. 1, 2017 - Dec. 31, 2017) (Apr. 1, 2018 - Dec. 31, 2018)
Bioindustry

2,015

2,021

2,693

Gene therapy

1,287

988

1,804

AgriBio

5－6

Corporate

108

155

148

3,417

3,164

4,653

Total

- 11 -

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)(2) Comparative Consolidated Statement of Income
Nine months ended
Dec. 31, 2017

(Rounded down to one million yen)
Nine months ended
Year on year
Year on year
Dec. 31, 2018
ChangeRatio（Net Sales）
Research reagents
Scientific instruments
Contracted services
Other
Bioindustry Total
Gene therapy
Functional foods
Mushrooms
AgriBio total

15,663
1,890
2,441
411
20,405
500
533
1,206
1,740

17,093
1,907
2,647
335
21,984
2,304
409
1,189
1,599

1,430
17
206
(75)
1,578
1,804
(124)
(17)
(141)

109.1%
100.9%
108.5%
81.7%
107.7%
460.9%
76.7%
98.6%
91.9%

Total Net Sales

22,64625,8883,242

114.3%(Operating Income and Loss)
Net Sales

22,64625,8883,242

114.3%

Cost of sales

9,879

10,9471,068

110.8%

Gross profits

12,766

14,9402,174

117.0%

SG&A expenses

11,157

11,507350

103.1%

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

469
59
581
3,417
6,466

514
38
544
3,164
7,019

45
(20)
(37)
(252)
552

109.6%
65.2%
93.6%
92.6%
108.5%

162

225

63

138.7%

Operating income

1,608

3,432

1,823

213.4%

236
82

201
84

(34)
2

85.3%
102.7%

1,762

3,549

1,786

201.4%(Non-operating Income and Expenses)
Non-operating income
Non-operating expenses
Ordinary income(Extraordinary Income & Losses)
Extraordinary income
Extraordinary losses
Income before income taxes and minority interests
Income taxes
Net Income
Net income (loss) attributable to noncontrollinginterests
Net income attributable to owners of the parent
Depreciation and amortization (Property, plant andequipment and intangible assets)
Amortization of goodwill

0

55

54

19,486.6%

20

900

880

4,347.3%

1,742

2,703

961

155.2%

674

612

(62)

90.7%

1,067

2,091

1,024

196.0%

(1)

3

4

－

1,068

2,088

1,019

195.4%

1,896

2,014

117

106.2%

364

374

9

102.7%

Nine months ended
Dec. 31, 2017
3,696
(802)
110
(1,395)

Nine months ended
Dec. 31, 2018
4,138
885
(3)
(1,587)

Year on year
Change
442
1,688
(114)
(192)

Year on year
Ratio
112.0%
－
－
－

1,608

3,432

1,823

213.4%

Profit and loss by business segment (Operating income)Bioindustry
Gene therapy
AgriBio
Corporate
Total

The original disclosure in Japanese was released on January 30, 2019 at 15:00 (GMT+8)(3) Comparative Statement of Income Relating to Consolidated Earnings Forecasts
Year ended
Mar. 31, 2018
ActualYear ending Mar.
31, 2019
Previous forecast(Rounded down to one million yen)

Year ending
Mar. 31, 2019
Current forecast

Year on year
ChangeYear on year
Ratio

Previous
forecast
ChangePrevious
forecast
Ratio

100.8%（Net Sales）
Research reagents

22,20723,50923,703

1,495

106.7%

193

Scientific instruments

2,635

2,680

2,587

(47)

98.2%

(92)

96.5%

Contracted services

4,210

4,558

4,727

516

112.3%

169

103.7%

Other

514

500

462

(52)

89.9%

(38)

92.4%

29,56831,24931,481

1,912

106.5%

231

100.7%

Gene therapy

500

2,590

2,438

1,938

487.8%

(151)

94.1%

Functional foods

693

398

409

(283)

59.1%

10

102.7%

Mushrooms

1,550

1,560

1,469

(80)

94.8%

(90)

94.2%

AgriBio total

2,243

1,959

1,879

(364)

83.7%

(80)

95.9%
100.0%

Bioindustry Total

Total Net Sales

32,31235,80035,8003,487

110.8%－Net Sales

32,31235,80035,8003,487

110.8%－

100.0%

Cost of sales

13,657

14,89014,934

1,277

109.4%

44

100.3%

Gross profits

18,65520,90920,8652,209111.8%

(44)

99.8%

SG&A expenses

565

103.7%

(244)

98.5%

(Operating Income and Loss)

15,09915,90915,665

Transportation expenses

643

734

692

49

107.7%

(42)

94.2%

Advertising expenses

83

55

56

(26)

67.9%

0

101.0%

Promotion expenses

729

735

713

(15)

97.9%

(21)

97.1%

R&D expenses

4,653

4,555

4,472

(181)

96.1%

(83)

98.2%

Administrative expenses, other
Enterprise taxes(external standards taxation)

8,750

9,533

9,444

693

107.9%

(89)

99.1%

239

294

285

46

119.4%(8)

97.0%

Operating income

3,555

5,000

5,200

1,644

146.2%

200

104.0%

Non-operating income

402

331

297

(104)

74.1%

(33)

89.8%

Non-operating expenses

96

131

97

1

102.0%

(33)

74.3%

3,861

5,200

5,400

1,538

139.8%

200

103.8%(Non-operating Income and Expenses)

Ordinary income(Extraordinary Income & Losses)
Extraordinary income

0

69

125

125

16,289.7%

56

181.1%

Extraordinary losses

501

751

912

410

181.9%

160

121.4%

Income before income taxes andminority interests

3,361

4,518

4,613

1,252

137.3%

95

102.1%

Income taxes

1,023

1,410

1,441

418

140.9%

31

102.2%Net Income

2,338

3,108

3,172

833

135.7%

63

102.1%Net income (loss) attributable tononcontrolling interests
Net income attributable toowners of the parent

3

8

22

19

723.2%

13

269.4%

2,335

3,100

3,150

814

134.9%

50

101.6%

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

2,568

2,724

2,703

134

105.2%

(21)

99.2%

489

500

502

13

102.7%

2

100.4%

Year on year
ChangeYear on year
Ratio

Previous
forecast
ChangePrevious
forecast
Ratio

102.7%

Amortization of goodwill

Profit and loss by business segment (Operating income)Year ended
Mar. 31, 2018
ActualYear ending Mar.
31, 2019
Previous forecast

Year ending
Mar. 31, 2019
Current forecast

Bioindustry

6,683

6,778

6,959

276

104.1%

180

Gene therapy(1,322)

442

398

1,721

－

(43)

90.1%

AgriBio

107

25

26

(80)

24.6%

0

103.7%

Corporate(1,912)(2,247)(2,185)

(272)

－

62

－

Total

3,555

5,000

5,200

1,644

146.2%

200

104.0%- 13 -