Mid-Term Strategic Plan
From FY2021 to FY2025
All for KIDS, KIDS for All

KIDS WELL, ALL WELL
GENE TECHNO SCIENCE CO., LTD.
FEBRUARY 15, 2015

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Key Points

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Vision２Outline of Mid-Term Strategic Plan
All for Kids, Kids for all

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KIDS WELL, ALL WELL

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Change of Company Name

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１．Vision Our Vision Core Strategy
 Our Future Our Role in Society Our SDGs and ESG Focus

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Our Vision

All for Kids, Kids for all
KIDS WELL, ALL WELL

VisionBiotech Engineering Company, Striving for value creation－Aiming at establishing a comprehensive healthcare systemfor children as well as families and society－

Mission
Providing new medicines and treatments to patients
suffering from illness, especially in the pediatric disease area,
contributing to the realization of a society where everyone
can live a happy life

Value
• Patient safety first through reliable quality• Always think about patients and act in good faith• Leverage innovation and diversity to increase value for all
stakeholders
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We have renewed our vision under the new company concept of “Kids Well, All
Well” for proceeding with our mid-term strategic plan.

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Core Strategy
Create innovative products and services in our three business domains
and deliver them to patients in Japan and all over the world.

Hybrid and Virtual Management
Business Model
Biosimilar Business

Regenerative Medicine
Business・Drug substance development
and supply

・ R&D of SHED※ and CSC ※ ※事業安定化と早期収益化を実現
Basis for stable
management
through realizing
earlier break-even

Stability &Early
Profitability

Business
GrowthBusiness
expansion
高い成⾧性を実現

New Biologics
Business
・R&D of mainly antibody drugs※ SHED （Stem cells from Human Exfoliated Deciduous teeth）※※ CSC （Cardiac Stem Cells）

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We will continue to pursue growth in the regenerative medicine and new
biologics business while making profit and stabilizing the biosimilar business.

5Our Future
GTS after realizing of our vision
Contributing to a sustainable social
security system while maintaining ahealthy and strong company growth

Realizing highprofitability

Better Access toTreatments

Reduction of
Medical Expenses

Japan and the world

New
Treatment Methods

Rare Disease/ Intractable
DiseaseBiosimilar Business

Pediatric Disease

New Biologics/
Regenerative
Medicine
Business

ESG
SocialContribution

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While achieving expansion of our profit through regenerative medicine and new
biologics and stable returns from the biosimilar business, we continue to create
new treatment methods and provide medical care.
We also aim for the reduction of medical costs through the supply of reliablebiosimilars. We will promote social contribution and ESG activities that will leadto the well-being of people not only in Japan but also around the world.

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Our Role in Society
Two Virtuous Cycles through “Kids Centricity”
Create high quality and low-cost biosimilars andcontribute to reduced medical expenses

High
MedicalExpenses

Reallocation of medical
resources

Image of our medical resource
allocation

Elderly

Adults support childrenChildren

AdultsPatients

Cells

More medical resources

Patients

Elderly
AdultsMore healthy people, more
support for long-life society↑ Sustainable Economic Development ↑↑New Treatment Methods↑

Children supporting economic
activities in society

Creating regenerative
medicine with SHED & CSC

MedicalR&D
Treatments

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In this mid-term strategic plan, we focus on children. Our role in society is tocontribute to two virtuous cycles as seen in the chart.
The cycle on the left-hand side, we will provide biosimilars in order to reduce
medical expenses for elderly people and assist in allocating them to childcare. If
more children can overcome diseases, they can play an active role in oursociety, and support a long-life society.
The cycle on the right-hand side is to utilize stem cells originating from children,
SHED and CSC. SHED in particular is the key for the success of our regenerative
medicine business. It goes through a cycle of curing the diseases of adults andthe elderly, leading to a revitalized, strong society not only for children but also
for adults.

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Our SDGs and ESG Focus

Pursuing contributions to S (social, society) of ESG
by providing new medical treatments

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Our ESG activities are focused on “Social”, especially making new medical
treatments available to more patients.

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２．Outline of Mid-Term Strategic Plan Executive Summary Roadmap
 New Drug Pipeline Aiming at Partnering

99Executive Summary① Financial Target

Fiscal year ending in March Operating Income: Turning profitable in FY2022
 Sales of 3 billion yen and operating income of 1 billion yen in FY2025.

② Business Growth Strategies to FY2025

Expanding potential licensing-out products and establishing business foundation for expanding andsustainable profits
Regenerative
Medicine（SHED）• Proceed with R&D collaboration with current partners.
• Accelerate R&D and partnering for cerebral palsy, spinal cord injury, andnon-union fractures.

Continuing
FY2025

Regenerative
Medicine（CSC）• Find a partner until the end of FY2022 and initiate collaboration for theestablishment of JRM-001 business.

FY2022

New Biologics• Accelerate R&D and find a collaboration partner for Malignant lymphoma,
Vasculitis and Pulmonary Hypertension.

FY2025

Biosimilars• Expand profit significantly with sales of GBS-001, GBS-007, GBS-011 andlaunch a fourth product to the market.

Continuing

Others• Streamline Selling, General and Administrative expenses while continuing toinvest in R&D for our growth.

Continuing③ Business Growth Strategies beyond FY2025
Striving to realize our vision while further increasing profits
SHED• Launch three products in the existing pipeline to the market.
• Promote next-generation cell therapy, designer cell, with enhanced
therapeutic efficacy.

CSC• Expand indications for other heart diseases such as dilated cardiomyopathy.

Continuing

New Biologics• Launch newly developed products.

Early 2030s

Biosimilars• Develop new biosimilar products with high-yield protein producing cell line
technology and promote partnering.
• Develop new biosimilar products for the profit after 2030.

Continuing
Continuing

FY2030Continuing

10This is the executive summary of our mid-term strategic plan. There are three
key points. The 1st is turning profitable in FY2022. The 2nd is to achieve 3billion-yen sales and 1-billion-yen operating profit. Strategic plan ② is thegrowth strategy to achieve these numerical targets. Finally, the 3rd key point isrelating to “beyond FY2025”.
The numerical target in FY2025 is not our goal, but rather a checkpoint. We aresowing the seeds with the aim of realizing further dramatic profit growth
between 2030-2035. Strategic plan ③ summarizes our strategies for eachbusiness. Regarding SHED, a core driver in our regenerative medicine business,
we commit to find our business partners by FY2025 and launch three products
by 2030. We are using “naked” or “naïve” SHED now, but, aiming at 2030s, wewill develop a 2nd generation SHED, which we call “Designer Cells”. This is asort of recombinant SHED which, we believe, will become a leading player inthe regenerative medicine area after 2030-2035.
Regarding CSC, we will commit to launching the first product by FY2025, after
which we will expand its usage to other heart diseases. This will allow it to be
used by a wider range of patients thereby further increasing profits.
As for new biologics, we will drive collaboration with potential partners in orderto launch new products in the early 2030s. Finally, regarding biosimilars which
is our key sales driver, we will develop a new pipeline which will ensure highquality and cost competitiveness by utilizing our high yield protein producing
cell line technology. This should become a new cash cow, aiming at “after2030”.

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Roadmap
The key to further growth isto expand partnering for regenerative medicine and new biologics pipelineA) Turning profitable in FY2022
B) 3 billion yen of sales and 1 billion yen of operating profit in FY2025 and huge profit expansion after 2025
C) Sufficient R&D investment for future business growth

B. Profit Expansion

Operating
Profit3 billion yen of sales
1 billion yen of operating profit

Unit:Million yen

High Return

Further expansion of profits bylicensing out new regenerative &new biologics medicines

A. Turning profitable

More stable profitability by reducing
manufacturing costs of existingbiosimilars and launching new
biosimilars
Stable Profit
0

C. Sufficient R&D investment for future business growth△1,000Initially expected
break-even point△2,000
FY2020

FY2022

FY2025

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This roadmap visualizes our mid-term strategic plan. Again, there are threepoints. A is to turn profitable in FY2022. This is much earlier than we had
previously planned. (Please see the light blue area which indicates our originalplan, i.e., FY2024 or FY2025 to turn profitable). B is our commitment toachieve 3-billion-yen sales and 1-billion-yen operating profit.
This is not our goal, but just a checkpoint to confirm if the basis for further
dramatic profit growth has been established. Therefore, it is more important torealize dramatic profit growth beyond FY2025. We are confident we can achieve
this by implementing manufacturing cost reduction initiatives and developing a
new pipeline in biosimilars and licensing out new regenerative & biologics
medicines. The biosimilar business ensures our sustainable profit growth andthe new biologics business will dramatically expand this profit level. This is ourcommitment.

11New Drug Pipeline Aiming at Partnering
Cerebral palsy

Spinal cord injury

Pediatric disease

Treatment method: None
Number of patients: 30,000 patients(2,000 newborn babies per year)
Therapeutic target: Maintain postureand improve limb athletic ability

Non-Union Fractures
Treatment method: Surgery
Number of patients: 100,000
patients per year
Therapeutic target: Maintainposture and improve limb
athletic ability

Treatment method: None
Number of patients: 100,000 patients(5,000 patients per year)
Therapeutic target: Recover perception,
improve walking ability
Regenerative
Medicine BusinessJP market:
over several billions yen
Global market:
over tens of billion yen
NewBiologics

Vasculitis

Includingpediatric disease

Includingpediatric disease

Treatment method: Immunosuppressive andvasodilator drugs
Number of patients: 40,000 patients
Expected effect: Suppression of
hyper inflammation on the blood vessel
wall, which is ineffective with existing drugs

Malignantlymphoma

Includingpediatric disease

Treatment method:
Chemotherapy, CAR-T therapy
Number of patients:
30,000 patients per year
Expected effect: Induction of cell
death independent of the patient's
immunity

Pulmonary Hypertension

Includingpediatric disease

Treatment method: Vasodilator drugs
Number of patients: 250,000 patients
Expected effect: Therapeutic effect on patientsfor whom existing drugs are ineffective
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How can we accomplish high return? We have been developing a pipeline forregenerative medicine since 2018 and for a new biologics business since GTS
was founded. The targeted diseases above were chosen by considering
feasibility and marketability. For expansion of profits, we commit to creating andlaunching brand-new treatment methods for these diseases with pharmaceuticalpartners.

12Designer Cell – Next Generation Cell Therapy –Designer Cell can Change Patients’ Future : 2 nd Generation Cell TherapyｘCell Therapy

Enhanced therapeutic efficacy
and cell directionality for
disease sites＝

Designer Cell

1st generation
2 nd generation Cell Therapy R&D
FY2021

Clinical Trial

FY2025

FY2030

2 nd Generation “Designer Cell”
Permanent
Cure
Treatment

Symptomatic
Treatment

Vaccine（Prevention・Treatment）

1st Generation
Cell Therapy
Non-Recombinant
Type of Stem Cell etc.

DTx

Small, Mid
Molecule Drug

Infection

Life style
relatedRecombinant Cell Therapy (StemCell-Based)
Add/Enhance Functions
by Genetic Engineering

Nucleic
acid
Medicine

Antibody Drug

Pediatric disease
Degenerative（Nerve, Organ）

Autoimmunity* Created by Gene Techno Science referring from Strategic Proposal of Designer Cell by Japan Science and Technology Agency.

CancerGene
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We have already initiated the 2nd generation cell therapy R&D as this chart
illustrates. We believe designer cells will become a leading player in cell therapy
after 2030-2035 and drive our profit growth dramatically.

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New biosimilar pipeline for partnering
Challenge for new biosimilars based our track record andhighly efficient manufacturing technology【New Pipeline】

Drive development of highly cost-competitive new biosimilars《New biosimilar pipeline candidates》*
Nivolumab BS (Opdivo), Pembrolizumab BS (Keytruda), Ravulizumab BS (Ultomiris)
Brolucizumab BS (Beovu), Ustekinumab BS (Stelara) etc.
＊Business collaboration should be established with potential development partners.

【High-yield protein producing celllines technology】【Track record of launchingbiosimilars】

Research collaboration with SOLA Biosciences
and choromocenter to significantly improve costcompetitiveness and profitability using a brandnew high yield production cell line technology

・ GBS-001 Filgrastim BS（Launched in FY2013）
・ GBS-011 Darbepoetin alfa BS（in FY2019）
・ GBS-007 Ranibizumab BS（Filed for
Manufacturing & Marketing Approval in FY2020）
・ The 4 th biosimilar to be launched（by FY2025 ）14

As the biosimilar business is our key driver to achieve sustainable profit growth,
we will challenge ourselves to create a new pipeline. We believe that this isrealistic based on our track record, which has been proven by our launched/tobe-launched products and highly efficient manufacturing technology which are
currently developed as a high yield protein producing cell line technology. We
believe biosimilars will be promoted by governments all over the world tomaintain their social security systems. We, therefore, commit to launch morebiosimilars in the future.

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3. All for Kids, Kids for all
KIDS WELL, ALL WELL

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All for Kids, Kids for all

KIDS WELL, ALL WELL
For a comprehensive healthcare system for children as well as families andsociety

ALL WELL
FamilyEducational
Institutions

KIDS WELL

Friends

Regenerative
Medicine

GTS

New Biologics
Biosimilars

MedicalCommunity

Institutions

Government

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Our focus is on children, but, as explained in earlier slides, we will also target
diseases from which adults/elderly people are suffering. By having “KIDS WELL,
ALL WELL” in our mind, we will realize a comprehensive healthcare system forchildren as well as families and society through our business. We really wish
that everyone can live a happy life with “a big smile”.

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4．Change of Company Name

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Change of Company Name

Kidswell Bio Corporation
Kids＋wellness
All for KIDS, KIDS for All
Biotech Engineering Company,
Striving for Value Creation
For a comprehensive healthcare systemfor children as well as families and society(Note) Change of company name is subject to approval at the 21st shareholders' meeting to beheld in June 2021.

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Create new treatment methods to save children so that children can support
and contribute to our society. With all for kids, kids for all, the new company
name shows our mission and responsibility to patients and stakeholders. (Thechange of company name is subject to approval at the shareholders meeting
planned in June. )18

Cautionary Statement

This information material is provided for understanding Gene Techno
Science (“GTS”), not for soliciting investment in GTS shares.
Information provided in this material may contain so-called “forwardlooking statements.”
These statements are based on current
expectations, forecasts and assumptions that are subject to risks anduncertainties, which could cause actual outcomes and results to differ
materially from these statements.
Risks and uncertainties include
success rate of R&D projects, new regulations and rules, relations withpartners in the future, etc.
This material includes information on pharmaceutical products andregenerative medicine (or related products), etc., which are being
developed or launched. However, this is not intended to promote our
products or provide medical advice.

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Gene Techno Science
GTS
3.0
Biotech Engineering Company,
striving for value creation
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Inquiries regarding our mid-term plan will be summarized and posted on our
website. Gene Techno Science continues to promote our pipeline centered on
research and development activities and will contribute to a better direction forsociety. We appreciate your continued support.

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