Newly Listed Company Introduction Report (Issued by The Stock Research Center)

June 21, 2024

TAUNS Laboratories (197A TSE Standard)

Leading manufacturer of COVID-19 antigen test kits and other in vitro diagnosticproductsThis report is an English translation of part of the report issued on June 21, 2024.
For inquiries concerning the report, please contract info@stock-r.org【197A TAUNS Laboratories Sector：Pharmaceutical】
Fiscal YearNet sales

YoY(mn yen)(%)

OperatingprofitYoY(mn yen)(%)

Ordinary
profitYoY(mn yen)(%)

ProfitYoY(mn yen)(%)

EPSBPS

DPS

(yen)

(yen)

(yen)

Jun. 2022

17,456-

11,189-

11,210-4,480-

44.8

73.5

28.00

Jun. 2023

15,673

-10.2

4,967

-55.6

4,953

-55.8

3,034

-32.3

30.3

84.8

9.00

17,553

12.0

7,891

58.9

7,741

56.3

5,550

82.9

55.5

Jun. 2024

f- 27.75

Note: Non-consolidated basis.Figures for the fiscal year ending June 2024 is the company's forecasts.

Conducting In Vitro Diagnostics Business
As an in vitro diagnostics manufacturer that develops, manufactures and sells rapid
diagnostic test kits for infectious diseases caused by COVID-19, influenza and otherviruses, TAUNS Laboratories is one of the leading companies in the domestic Point ofCare Testing (POCT) market.
The company’s net sales were centered on influenza antigen test kits until the launch ofthe SARS-CoV-2 antigen test kit in October 2020. Since the SARS-CoV-2 antigen test kit
was launched, net sales of products related to COVID-19 infection have comprised morethan half of total sales. In addition to COVID-19 and influenza viruses, the company
manufactures and sells adenovirus, mycoplasma and many other antigen test kits.

Sales
TAUNS Laboratories provides its products through pharmaceutical wholesalers tohospitals, physicians, research institutions and bio-venture companies. As of the end ofApril 2024, TAUNS Laboratories had 35 sales staff, which is only about 13% of its total
workforce, but 60% of these sales representatives have more than ten years of experiencein the industry.
The Ministry of Health, Labour and Welfare accounted for 48.2% of the total sales in fiscal
year ended June 2022. This was due to the purchase of antigen test kits by the Ministryamid the spread of COVID-19. Meanwhile, sales to the Suzuken group rose sharply infiscal year ended June 2023, comprising 73.0% of the total. The reason for this was thatwhile purchases by the Ministry disappeared, sales to medical institutions directly
responsible for patient testing trended upward.
Moreover, at the end of 2021, TAUNS Laboratories signed a joint sales agreement withShionogi regarding a SARS-CoV-2 antigen test kit.

Manufacturing
The company's sole production facility is the Kamishima Factory in Izunokuni City,Shizuoka Prefecture. However, it is currently constructing a plant in Mishima City, also in
Shizuoka, with a view to expand future business and for business continuity planning(BCP) purposes. Operations at the new factory in Mishima are planned to start inDecember 2025, and the company’s monthly production capacity will increase threefold
from the current level.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

Newly Listed Company Introduction Report (Issued by The Stock Research Center)

June 21, 2024

TAUNS Laboratories (197A TSE Standard)
Financial Statements

Statement of income

Fiscal Year

Jun. 2022(mn yen)

Net sales

Nine months
to Mar.2024

Jun. 2023(%)(mn yen)(%)(mn yen)17,456100.0

15,673

100.0

Cost of sales

2,774

15.9

6,473

Gross profit

14,682

84.1

9,199

Selling, general and administrative expenses

3,492

20.0

Operating profit

11,18964.1

Non-operating income

29

Non-operating expenses

8

Ordinary profit(%)

16,371

100.0

41.3

5,061

30.9

58.7

11,310

69.1

4,232

27.0

3,084

18.8

4,967

31.7

8,226

50.2

-

8-

42-

-

22-

19-

11,210

64.2

4,953

31.6

8,249

50.4

Profit before income taxes

7,975

45.7

4,654

29.7

8,246

50.4

Net profit

4,480

25.7

3,034

19.4

5,906

36.1

Balance sheet

Fiscal Year

Jun. 2022(mn yen)Current assets

Jun. 2023(%)(mn yen)Mar.2024(%)(mn yen)(%)

12,035

59.4

9,456

51.6

18,153

59.6

6,347

31.3

1,244

6.8

8,282

27.2

942

4.6

3,051

16.6

6,071

19.9

4,588

22.6

4,586

25.0

3,725

12.2

8,232

40.6

8,875

48.4

12,293

40.4

Property, plant and equipment

3,683

18.2

4,402

24.0

7,804

25.6

Intangible assets

4,137

20.4

3,910

21.3

3,771

12.4

3,180

15.7

2,953

16.1

2,783

9.1

895

4.4

795

4.3

721

2.4

411

2.0

562

3.1

717

2.4

Total assets

20,268100.0

18,332100.0

30,447100.0

Current liabilities

8,936

44.1

6,517

35.5

13,845

45.5

Accounts payable - trade

1,390

6.9

1,143

6.2

1,360

4.5

Short-term borrowings

1,200

5.9

3,500

19.1

4,500

14.8

Cash and deposits
Accounts receivable-trade
Inventories
Non-current assets

Customer-related assets
Technology asset
Investments and other assets

Current portion of long-term borrowings
Non-current liabilities
Long-term borrowings
Net assets
Owners' equity

732

3.6

732

4.0

732

2.4

3,974

19.6

3,324

18.1

2,807

9.2

2,968

14.6

2,236

12.2

1,687

5.5

7,35636.3

8,489

46.3

13,794

45.3

7,348

36.3

8,480

46.3

13,786

45.3

Jun. 2022

Jun. 2023(mn yen)(mn yen)

10,694-3,157567

639

Cash flows from investing activities-2,679-1,615

Cash flows from financing activities-3,660-330

Statement of cash flows

Fiscal Year

Cash flows from operating activities
Depreciation-1,800-1,900Net increase in cash and cash equivalents

Dividends paid

4,354

-5,103

Cash and cash equivalents

6,347

1,244

Note:Non-consolidated
Source: Prepared by Stock Research Center based on the notifiable prospectus.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
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no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

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