The original disclosure in Japanese was released on January 30, 2018
Consolidated Financial Statements for the Third Quarter Ended December 31, 2017
FY2017 (April 1, 2017 - March 31, 2018) [UNAUDITED]Company name:
Stock exchange listings:
Code number:
URL:
Company representative:
Contact:

Takara Bio Inc.
Tokyo Stock Exchange (1st section)4974
http://www.takara-bio.co.jp
Koichi Nakao, President
Shuichiro Matsuzaki, Executive Vice President
Tel. (077) 565-6970
Quarterly statement filing date (as planned):
February 9, 2018
Scheduled starting date of the dividend payments:
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.
1. Results for the nine months ended December 31, 2017 (April 1, 2017 – December 31, 2017)(1) Operating results(Percentages indicate changes from the same period of the previous fiscal year.)Nine months ended
Nine months ended
December 31, 2017
December 31, 2016
(Millions of yen)
(Millions of yen)(%)(%)
22,646
9.7
20,645(0.3)
Net sales
1,608(41.0)
2,724
88.6
Operating income
1,762(38.6)
2,869
69.0
Ordinary income
Net income (loss) attributable to
1,068(31.5)
1,561
154.4
owners of the parent
8.88
12.97
Net income per share (in yen)
Fully diluted net income per share(in yen)811(1,482)
Note: Comprehensive income(2) Financial position
As of December 31, 2017
(Millions of yen)

As of March 31, 2017
(Millions of yen)

66,75960,31590.2
500.0760,216

67,14359,98589.2
497.32
59,884

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

Annual dividends per share in yen
Year ended March 31,
Year ending March 31,
20182018 (Forecast)First quarter end
Second quarter end
Third quarter end
Year end
4.00
4.00
Annual4.00
4.00
Note: No revision of dividend payment forecast since the most recently announced payment forecast.
Year ended March 31,
20173. Forecast for the year ending March 31, 2018 (April 1, 2017 – March 31, 2018)(Percentages indicate changes from the same period of the previous fiscal year.)Year ending March 31, 2018(%)

Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
Net income attributable to owners of the parent per share (inyen)(Millions of yen)
33,000
3,500
3,800
2,000

12.3
9.3
6.2
47.9

16.61

Note: No revision of financial forecast since the most recently announced financial forecast.
4. Others(1) Material changes in subsidiaries during the nine months ended December 31, 2017
(Changes in scope of consolidations resulting from change in subsidiaries): Yes
Newly included: two companies: Rubicon Genomics, Inc., WaferGen Bio-systems, Inc.
Excluded: two companies: Rubicon Genomics, Inc. WaferGen Bio-systems, Inc.
Note: For details, please refer to 2. Consolidated Quarterly Financial Statements and Primary Notes, (4) Notes on Consolidated
Quarterly Financial Statements, (Material Changes in Subsidiaries during the Nine Months Ended December 31, 2017) on page 9 of
the attached document.

(2) Application of special accounting methods to the consolidated quarterly financial statements: No(3) Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) Changes based on revisions of accounting standard: No
2) Changes other than ones based on revisions of accounting standard: No
3) Changes in accounting estimates: No4) Restatement: No(4) Number of outstanding shares (common stock)1) Number of outstanding shares (Treasury stocks are included)
As of December 31, 2017:
120,415,600
As of March 31, 2017:
120,415,600
2) Number of treasury stocks
As of December 31, 2017:
As of March 31, 2017:
3) Average number of outstanding shares
Nine months ended December 31, 2017:
120,415,600
Nine months ended December 31, 2016:
120,415,600
Notes
These financial statements are not subject to auditing.

Comment regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements such as the business results forecasts contained in this document are determined by Takara
Bio based on information currently available and assumptions judged by the company to be reasonable, and are not aguarantee that the company will achieve such results. Actual results could differ significantly from those forecasts due toa wide range of factors. For information on the conditions upon which these forecasts are based and notes regarding theiruse, please refer to 1. Qualitative Information for the Nine Months Ended December 31, 2017 (4) Qualitative Information
Regarding Consolidated Forecasts, on page 3 of the attached document.

Contents of the attached document
1. Qualitative Information for the Nine Months Ended December 31, 2017……………………………………

2(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, 2017 and 2016) ……………………………………………………….
(Consolidated Quarterly Statements of Comprehensive Income)(For the Nine Months Ended December 31, 2017 and 2016) ……………………………………………………….
(3) Consolidated Quarterly Statements of Cash Flows……………………………………………………………………...
(4) Notes on Consolidated Quarterly Financial Statements …………………………………………………………………
(Notes on Premise of Going Concern) ……………………………………………………………………………….
(Notes When There are Significant Changes in Amounts of Equity) ………………………………………………...
(Material Changes in Subsidiaries during the Nine Months Ended December 31, 2017) ……………………………..
(Segment Information) ………………………………………………………………………………………………..
(Other Notes) …………………………………………………………………………………………………………
3. Supplementary Information …………………………………………………………………………………………………..
(1) Trends in Key Management Indicators ………………………………………………………………………………….
(2) Comparative Consolidated Statement of Income ………………………………………………………………………..
(3) Comparative Statement of Income Relating to Consolidated Earnings Forecasts………………………………………

2
3
3
3
4
4
6

1

6
7
8
9
9
9
9
10
11
12
12
13
15

1. Qualitative Information for the Nine Months Ended December 31, 2017
(1) Consolidated Financial Results
In the nine months ended December 31, 2017, although the Japanese economy continued to maintain a moderate recovery as
corporate earnings, the employment situation, and other circumstances improved, the future of the world economy continues tobe unpredictable due to the upsurge in uncertainty regarding such issues as policy trends in the U.S. and global geopolitical risks.
Under these circumstances and based on the newly established three-year Takara Bio Medium-Term Management Plan
FY2020, the Takara Bio Group promoted the strategies of the Bioindustry, Gene Therapy, and AgriBio Businesses andstrengthened the business bases which support them to enhance the Group’s standing as a global enterprise and regenerative
medical products company and, further, promoted initiatives aimed at achieving prodigious growth.
As a result, overall net sales increased 9.7% year on year, to ¥22,646 million, on contributions from newly consolidated
subsidiaries and from sales for contract services greatly exceeding those of the same period of the previous fiscal year. Also, costof sales increased 21.9% year on year, to ¥9,879 million due to the increase in net sales and the recording of amortization of
intangible assets accompanying the acquisition of newly consolidated subsidiaries, and gross profit increased by 1.8%, to ¥12,766
million. Selling, general and administrative (SG&A) expenses increased by 13.7% year on year, to ¥11,157 million, due toincreases in personnel costs of newly consolidated subsidiaries and amortization of goodwill. Accordingly, operating income
declined 41.0% year on year, to ¥1,608 million.
In accordance with the decline in operating income, ordinary income fell 38.6% year on year, to ¥1,762 million, income
before income taxes and minority interests decreased 33.6% year on year, to ¥1,742 million, and net income attributable toowners of the parent dropped 31.5% year on year, to ¥1,068 million.
The statuses of Group business segments are as follows.
Bioindustry
Given the ever-widening activities of biotechnology R&D, the Group 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, 2017, sales by product category saw sales of scientific instruments decline yearon-year, but sales of research reagents and contract services increase year on year.
As a result of the above, sales to external customers increased 10.8% year on year, to ¥20,405 million, and gross profit
increased 1.8% year on year to ¥11,783 million. SG&A expenses increased by 17.1% year on year to ¥8,087 million due to theaforementioned increases in personnel costs of new consolidated subsidiaries and amortization of goodwill. Accordingly,
operating income declined 20.9% year on year to ¥3,696 million.
Gene Therapy
The business focuses on the early commercialization of gene therapies for diseases such as cancer. These therapies utilize
original Takara Bio technologies such as the RetroNectin ® Method, a high efficiency gene transduction method; theRetroNectin ® expansion-culture system, a highly efficient lymphocyte propagation technology; as well as siTCR.
In the nine months ended December 31, 2017, ¥500 million was generated in development and sales licensing related to theoncolytic virus HF10.
As a result of the above, net sales to external customers remained unchanged year on year at ¥500 million, as did grossprofit. SG&A expenses increased 5.9% year on year to ¥1,302 million due to increased R&D expenses. Accordingly, operating
loss was ¥802 million, compared with an operating loss of ¥730 million in the same period of the previous fiscal year.

AgriBio
Based on the concept of “food as medicine,” this business uses its unique leading-edge biotechnology to identify the scientificbasis of foodstuffs. Based on this evidence, it develops, manufactures, and sells functional food ingredients. The AgriBio
Business focuses on rolling out Gagome kombu (kelp) “Fucoidan” related products, agar agaro-oligosaccharide related
products, Ashitaba (Angelica keiskei) “Chalcone” related products, the herb (Peucedanum japonicum) "Isosamidin" related
products, yam (Dioscorea esculenta) “Yamsgenin™” related products, and mushroom-related products.
In the nine months ended December 31, 2017, net sales of functional foods declined year on year. However, net sales ofmushroom-related products increased year on year. Consequently, net sales to external customers increased 0.9% to ¥1,740
million, and gross profit increased 5.1% to ¥482 million. SG&A expenses increased by only 0.8% year on year to ¥371 million
while operating income exceeded that of the same period of the previous fiscal year increasing 23.1% year on year to ¥110
million.
2

(2) Consolidated Financial Position
Total assets as of December 31, 2017 stood at ¥66,759 million, a decrease of ¥384 million compared with that at the end of theprevious fiscal year. This decrease resulted despite an increase of ¥12,170 million in intangible assets, primarily due to a decreaseof ¥13,351 million in cash and deposits.
Total liabilities as of December 31, 2017, were ¥6,443 million, a decrease of ¥714 million compared with that at the end of
the previous fiscal year. This was primarily due to a decline in provisions of ¥197 million and a decline in accounts payable–
other of ¥434 million, included in current liabilities, other.
Total net assets as of December 31, 2017, stood at ¥60,315 million, an increase of ¥330 million compared with that at theend of the previous fiscal year. This was primarily due to an increase of ¥587 million in retained earnings.
(3) Consolidated Cash FlowsNet cash provided by operating activities was ¥587 million, a decrease of ¥900 million compared with the same period of theprevious fiscal year. This was primarily due to a decrease of ¥882 million in income before income taxes and minority
interests.
Net cash used in investing activities was ¥13,147 million, a transition from revenue to expenditure compared with the same
period of the previous fiscal year, with expenses increasing by ¥22,625 million. This was primarily because of a ¥12,396
million purchase of shares of subsidiaries resulting in change in scope of consolidation, and the elimination of ¥10,177 million
from proceeds of sale and redemption of securities.
Net cash used in financing activities was ¥1,067 million, an ¥821 million increase compared with the same period of theprevious fiscal year. This was primarily because of ¥546 million in redemption of bonds, and a ¥264 million increase in cash
dividends paid.
As a result of the above, cash and cash equivalents as of December 31, 2017, including the effect of exchange rate change
on cash and cash equivalents, stood at ¥8,355 million, down ¥13,845 million from the previous fiscal year-end.
(4) Qualitative Information Regarding Consolidated Forecasts
Consolidated results from the nine months ended December 31, 2017, were recorded virtually as planned according to theconsolidated forecast released on November 7, 2017. Furthermore, current outlook for the fourth quarter remains roughly inline with said forecast.
Based on the above, the Group will not be revising the consolidated forecast released on November 7, 2017. Please see p.
14 of the “Comparative Statement of Income Relating to Consolidated Earnings Forecasts” for a comparison between said
forecast and previous period results.

3

2. Consolidated Quarterly Financial Statements and Primary Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
As of March 31, 2017
Asset
Current assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Deferred tax assets
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
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

4

As of December 31, 2017

28,078
7,455
2,000
4,032
459
970
998
(30)
43,964

14,726
7,161
2,049
5,287
567
1,385
1,407
(43)
32,542

12,699(5,032)
7,667
6,866(4,517)
2,349
6,174(3,946)
2,228
7,297
23
(22)
0
34
19,577

12,807(5,435)
7,371
6,994(4,817)2,177
6,701(4,420)
2,280
6,855
16
(16)
0
117
18,802

1,213
1,087
2,301

8,462
6,008
14,471

1,310
(11)
1,299
23,17867,143

954
(11)
943
34,21766,759(Millions of yen)
As of March 31, 2017
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term bank loans
Accrued income taxes
Provision
Other
Total current liabilities
Noncurrent liabilities
Long-term debt
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

As of December 31, 2017

1,944
47
375
425
3,232
6,025

2,050
33
192
228
2,822
5,327

82
622
426
1,131
7,157

82
657
375
1,115
6,443

14,96532,893
10,43258,291

14,96532,893
11,01958,878

2,023
(429)
1,593
100
59,985
67,143

1,727
(389)
1,337
99
60,31566,759(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, 2017 and 2016)(Millions of yen)
FY2017(April 1, 2016 –December 31, 2016)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Employees' salaries and bonuses
Retirement benefit expenses
Research and development 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 expense
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
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of noncurrent assets
Impairment Loss
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income (loss) attributable to noncontrolling interests
Net income attributable to owners of the parent

6

FY2018(April 1, 2017 –December 31, 2017)

20,6458,106
12,53822,646
9,879
12,766

2,294
103
2,870
174
4,370
9,813
2,724

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

84
62
22
16
186

55
38
51
65
24
236

1
25
5
7
1
41
2,869

18
22
40
1
82
1,762

2
2

0
0

47
199
247
2,625
1,222
(150)
1,071
1,553
(7)
1,561

20
20
1,742
555
119
674
1,067
(1)
1,068

(Consolidated Quarterly Statements of Comprehensive Income)(For the Nine Months Ended December 31, 2017 and 2016)(Millions of yen)
FY2017(April 1, 2016 –December 31, 2016)
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 interests

7

FY2018(April 1, 2017 –December 31, 2017)
1,553

1,067

(3,063)27(3,035)(1,482)

(295)
39
(255)
811

(1,458)
(23)

813
(1)

(3) Consolidated Quarterly Cash Flow Statement(Millions of Yen)FY2017(April 1, 2016 –December 31, 2016)
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 non-current
assetsDecrease (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
Income taxes paid for prior periods
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments for time deposits
Proceeds from time deposits
Purchases of marketable securities
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
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Increase (decrease) in short-term bank loans, net
Repayments of long-term loans payable
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

8

FY2018(April 1, 2016 –December 31, 2017)
2,625
1,276
199
123
121
△7
152
10
(84)
1

1,742
1,896
106
364
12
(382)
33
(55)
18

44

20

(636)

584

(1,323)(1,508)

317

(133)

(201)
8
2,626
75
(0)
(1,041)
(172)
1,488

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

(3,868)9,200(5,025)
10,177(7,127)
6,596
-

(954)

(909)

8

457

(59)

(48)

-

(12,396)

(0)
9,477

281
(13,147)

(14)
(13)
(216)
(1)
(246)

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

(840)

(217)

9,879
5,568
15,448(13,845)
22,2008,355

(4) Notes on Consolidated Quarterly Financial Statements(Notes on Premise of Going Concern)
No items to report.

(Notes When There are Significant Changes in Amounts of Equity)
No items to report.

(Material Changes in Subsidiaries during the Nine Months Ended December 31, 2017)
Due to the wholly owned subsidiary Takara Bio USA Holdings Inc. acquiring shares of WaferGen Bio-systems, Inc., WaferGen
Bio-systems, Inc. and its subsidiaries WaferGen Biosystems Europe S.a.r.l. and WaferGen, Inc. were included in the scope of
consolidation for the three months ended June 30, 2017. However, as WaferGen Bio-systems, Inc. and WaferGen, Inc. wereextinguished due to an absorption-type merger in which consolidated subsidiary Takara Bio USA, Inc. was the surviving company,and due to WaferGen Biosystems Europe S.a.r.l. being insignificant as a defunct company, these entities have been excluded fromthe scope of consolidation for the three months ended September 30, 2017. Note that during this period, WaferGen Bio-systems,
Inc. qualified as a specified subsidiary of the Company.
In addition, due to Takara Bio USA Holdings Inc.’s purchase of shares of Rubicon Genomics, Inc., Rubicon Genomics, Inc. had
been included in the scope of consolidation as a specified subsidiary for the three months ended June 30, 2017. However, as
Rubicon Genomics, Inc. was extinguished due to an absorption-type merger in which consolidated subsidiary Takara Bio USA, Inc.
was the surviving company for the three months ended June 30, 2017, Rubicon Genomics, Inc. has been excluded from the scope of
consolidation.

9

(Segment Information)
Segment Information
I. Equivalent Period of Previous Fiscal Year (From April 1, 2016 to December 31, 2016)
1. Net Sales and Income (Loss) by Reportable Segment

Bioindustry

Net Sales
External customer
Intersegment

Gene
Therapy

AgriBio

Adjustment(Note: 1)

Total(Millions of yen)Amountrecognized inconsolidated
quarterlystatements ofincome(Note: 2)

18,420500

1,724

20,645－

20,645

－

－

2

2

(2)

－

Total

18,420500

1,727

20,647(2)

20,645

Segment income (loss)

4,672

(730)

90

4,032

(1,307)2,724

Notes: 1. The adjustment for segment income was a loss of ¥1,307 million comprising companywide expenses not allocatedto reportable segments. Expenses of the Company primarily consist of general and administrative expenses andR&D expenses not attributed to reportable segments.
2. Segment income (loss) has been adjusted to the operating income of consolidated quarterly statements of income.
2. Noncurrent Asset Impairment Losses and Goodwill, and Other Items of Each Reportable Segment
As a result of the decision by the board of directors to sell the Otsu facility and dormitory land and buildings, animpairment loss of ¥148 million has been recorded for Bioindustry and ¥51 million for companywide assets not allocatedto reportable segments.
II. Nine Months Ended December 31, 2017 (From April 1, 2017 to December 31, 2017)
1. Net Sales and Income (Loss) by Reportable Segment

Bioindustry

Gene
Therapy

AgriBio

Adjustment

Total(Note: 1)(Millions of yen)Amountrecognized inconsolidated
quarterlystatements ofincome(Note: 2)

Net Sales
External customer
Intersegment

20,405500

1,740

22,646-

22,646

-

-

5

5

(5)

-

Total

20,405500

1,745

22,651(5)

22,646

Segment income (loss)

3,696

(802)

110

3,004

(1,395)

1,608

Notes: 1. The adjustment for segment income was a loss of ¥1,395 million comprising companywide expenses not allocatedto reportable segments. The companywide expenses primarily consist of general and administrative expenses andR&D expenses not attributed to reportable segments.
2. Segment income (loss) has been adjusted to the operating income of consolidated quarterly statements of income.
2. Noncurrent Asset Impairment Losses and Goodwill, and Other Items of Each Reportable Segment(Significant Impairment Losses Concerning Noncurrent Asset)
No items to report.
(Significant Changes to the Amount of Goodwill)In the Bioindustry segment, goodwill was recorded due to the acquisition of shares in WaferGen Bio-systems, Inc. andRubicon Genomics, Inc. by the wholly owned subsidiary Takara Bio USA Holdings Inc. The increase in goodwill due to thisevent in the nine months ended December 31, 2017 was ¥7,713 million. Note that as the allocation of the acquisition costhas not been completed, this is a tentatively calculated amount.
10(Other Notes)(Consolidated Quarterly Statements of Income)Nine months ended December 31, 2017 (From April 1, 2017 to December 31, 2017)
Breakdown of R&D expenses(Millions of yen)
3,417

Total R&D expenses
Main components of which are as follows
Employees’ salaries and bonuses
Retirement benefit expenses
Provision for allowances

1,018
41
27

(Consolidated Quarterly Statements of Cash Flows)
Nine months ended December 31, 2017 (From April 1, 2017 to December 31, 2017)
Relationship between balance of cash and cash equivalents at December 31, 2017 and amounts stated on the Consolidated
Balance Sheets as of December 31, 2017
(As of December 31, 2017)(Millions of yen)
Cash and deposits

14,726Time deposits with deposit period exceeding three months
Short-term investment (securities) with maturity date within three months from acquisition date

(6,420)49

Cash and Cash equivalents

8,355

11

3. Supplementary Information(1) Trends in Key Management Indicators1). Cash Flow
(Millions of yen)
Term
Accounting Period

15th Business Year
Nine months
ended December 31, 2016
From April 1, 2016

16th Business Year
Nine months
ended December 31, 2017
From April 1, 2017

From April 1, 2016

to December 31, 2016

to December 31, 2017

to March 31, 2017

Net cash provided by (usedin) operating activities
Net cash provided by (usedin) investing activities
Net cash provided by (usedin) financing activities

15th Business Year

1,488

587

3,584

9,477

(13,147)

13,493(246)(1,067)(280)2) Net Sales by Region
Equivalent Period of Previous Fiscal Year (from April 1, 2016 to December 31, 2016)(Millions of yen)
Japan

U.S.

9,581

China
4,677

Asia, excluding
China

3,476

Europe

1,017

Other

1,709

Total
182

20,645Period under Review (from April 1, 2017 to December 31, 2017)(Millions of yen)
Japan

U.S.

9,674

China
5,354

Asia, excluding
China

3,922

1,313

Europe

Other

2,203

Total
178

22,6463) R&D Expenses by Reportable Segment(Millions of yen)
15th Business Year
Nine months
ended December 31, 2016
From April 1, 2016
to December 31, 2016

16th Business Year
Nine months
ended December 31, 2017
From April 1, 2017
to December 31, 2017

Bioindustry

1,550

2,015

2,094

Gene therapy

1,214

1,287

1,860

Term
Accounting period

15th Business Year
From April 1, 2016
to March 31, 2017

AgriBio21

529

Corporate

84

108

116

2,870

3,417

4,101

Total

12

(2)Consolidated company income statement(Rounded down to one million yen)
Apr. 1, 2017 –Year on year
Year on year
Dec. 31, 2017
ChangeRatio

Apr. 1, 2016 –Dec 31, 2016
（Net Sales）
Research reagents
Scientific instruments
Contracted services
Other

14,099
1,909
2,092
318

15,663
1,890
2,441
411

1,563
(19)
348
93

111.1%
99.0%
116.6%
129.3%

Bioindustry Total

20,4051,985

110.8%

Gene therapy

18,420500

500Functional foods
Mushrooms

608
1,115

533
1,206

－
(75)
91

－
87.6%
108.2%AgriBio total

1,724

1,740

15

100.9%

Total Net Sales

20,64522,6462,001

109.7%

20,64522,6462,001

109.7%

Cost of sales

8,106

9,879

1,773

121.9%

Gross profits

12,53812,766

227

101.8%

SG&A expenses

9,813

11,157

1,343

113.7%

Transportation expenses

446

469

22

105.1%

Advertising expenses

73

59

(13)

81.0%

Promotion expenses

646

581

(65)

89.9%

R&D expenses
Trademark license fees to Takara
HD
Administrative expenses, other
Enterprise taxes (external standards
taxation)

2,870

3,417

546

119.0%

6

6

0107.9%

5,630

6,460

829

114.7%

139

162

23

116.5%

Operating income

2,724

1,608

(1,115)

59.0%

186
41

236
82

49
40

126.8%
198.1%

2,869

1,762

(1,106)

61.4%

2

0

(2)

10.9%

247

20

(226)

8.4%

Income before income taxes andminority interests

2,625

1,742

(882)

66.4%

Income taxes

1,071

674

(396)

63.0%

Net Income

1,553

1,067

(486)

68.7%

Net income (loss) attributable to noncontrolling interests

(7)

(1)

6

－

Net income attributable to ownersof the parent

1,561

1,068

(492)

68.5%

(Operating Income and Loss)
Net Sales(Non-operating Income andExpenses)Non-operating income
Non-operating expenses
Ordinary income(Extraordinary Income & Losses)
Extraordinary income
Extraordinary losses

13

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

1,276

1,896

620

148.6%

R&D expenses

2,870

3,417

546

119.0%

Profit and loss by business segment (Operating income)Apr. 1, 2016 –Dec 31, 2016
Bioindustry
4,672

Apr. 1, 2017 –Dec. 31, 2017
3,696

Year on year
Change(976)

Year on year
Ratio
79.1%

(730)

(802)

(72)

－

90

110

20

123.1%

Intersegment(1,307)(1,395)

(88)

－

Total

2,724

1,608

(1,115)59.0%

Gene therapy
AgriBio14

(3) Comparative Statement of Income Relating to Consolidated Earnings Forecasts(Rounded down to one million yen)
Year ended Mar
31, 2017
ActualYear ending
Mar 31, 2018
Current forecast
for FY2018

Year on year

Year on year

ChangeRatio（Net Sales）
Research reagents
Scientific instruments
Contracted services
Other

19,436
2,911
3,800
424

22,331
2,945
4,445
494

2,894
34
644
69

114.9%
101.2%
117.0%
116.5%

Bioindustry Total

26,57330,217

3,643

113.7%

Gene therapy

500

500

－

－

Functional foods

842

711

(130)

84.5%

Mushrooms

1,459

1,570

111

107.6%AgriBio total

2,301

2,282

(19)

99.2%

Total Net Sales

29,37533,0003,624

112.3%(Operating Income and Loss)
Net Sales

29,37533,0003,624

112.3%

Cost of sales

12,422

14,3181,895

115.3%

Gross profits

16,952

18,681

1,728

110.2%

SG&A expenses

13,74915,1801,430

110.4%

Transportation expenses

594

653

58

109.9%

Advertising expenses

89

84

(4)

94.8%

Promotion expenses

854

771

(82)

90.3%

4,101

4,654

553

113.5%

8

8

0106.7%

7,909

8,781

871

111.0%

192

226

34

117.8%

3,202

3,500

297

109.3%

Non-operating income

445

403

(41)

90.6%

Non-operating expenses

68

103

34

150.3%

3,579

3,800

221

106.2%

2

0

(2)

12.8%

775

413

(362)

53.3%

2,805

3,386

581

120.7%

1,449

1,376

(73)

95.0%

1,356

2,010

654

148.2%

3

9

6

297.3%

1,352

2,000

647

147.9%

R&D expenses
Trademark license fees to Takara
HD
Administrative expenses, other
Enterprise taxes (external standards
taxation)
Operating income(Non-operating Income and Expenses)

Ordinary income(Extraordinary Income & Losses)
Extraordinary income
Extraordinary losses
Income before income taxes andminority interests
Income taxes
Net Income
Net income (loss) attributable tononcontrolling interests
Net income attributable toowners of the parent

15

Depreciation and amortization(Property, plant and equipment andintangible assets)
R&D expenses

1,722

2,580

858

149.9%

4,101

4,654

553

113.5%

Year on year

Year on year

ChangeRatio

Profit and loss by business segment (Operating income)Year ended
March 31, 2017

Bioindustry

6,218

Year ending
March 31, 2018
Current forecast
for FY2018
6,670

Gene therapy(1,380)(1,394)

AgriBio452

107.3%

(13)

－

104

151

47

145.4%

Intersegment(1,739)(1,972)

(188)

－

Total

3,202

3,500

297

109.3%

16