The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)

Consolidated Financial Statements for the Year Ended March 31, 2019
FY2019 (April 1, 2018 - March 31, 2019) [UNAUDITED]May 14, 2019
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
Scheduled date of general shareholders’ meeting:June 21, 2019
Scheduled date of starting delivery of dividends:
June 24, 2019
Scheduled date of annual securities report filing date:June 27, 2019
Supplementary documents of the financial results:
Yes
Financial results information meeting:Yes
Notes: 1. The accompanying financial statements have been prepared in accordance with accounting principles andpractices generally accepted in Japan.
2. Amounts are rounded down to the nearest million yen.
Company name:
Stock exchange listings:
Code number:
URL:
Company representative:
Contact:

1. Results for the year ended March 31, 2019 (Apr. 1, 2018 – Mar. 31, 2019)(1) Consolidated operating results(Percentages indicate changes from the same period of the previous fiscal year.)Year ended Mar. 31, 2019
(Millions of yen)(%)
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)
Return on equity
Ordinary income to total assets ratio
Operating income to net sales ratio
Note: Comprehensive income

35,841
5,463
5,665
3,657

10.9
53.7
46.7
56.6

30.38
-

2,705

Year ended Mar. 31, 2018(%)

(Millions of yen)
32,312
3,555
3,861
2,335

10.0
11.0
7.9
72.6

19.39
5.8%
8.1%
15.2%
(10.2 %)

2,455

3.8%
5.7%
11.0%
(- %)

(2) Consolidated financial position
As of Mar. 31, 2019
(Millions of yen)

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

Total assets
71,04068,670Net assets
64,095
61,959Equity ratio (%)
90.1
90.1
Net assets per share (in yen)531.57513.66(Reference) Equity
64,00961,852
Note: 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 ended March 31, 2019. Accordingly, financial position
for the year ended March 31, 2018 indicates the numerical value after retroactive adjustment due to this revision.
(3) Consolidated cash flow

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

Year ended Mar. 31, 2019
(Millions of yen)

Year ended Mar. 31, 2018
(Millions of yen)

5,783
(5,576)
(541)
9,464

3,935
(14,755)(1,205)
10,051

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)
2. Dividends
Annual dividends per share in yen
Year ended Mar. 31,
Year ending Mar. 31,
20192020 (Forecast)
0.00
0.00
0.00
4.50
7.00
8.00
4.50
7.00
8.00
541
842
23.2
23.0
22.7
0.9
1.3
-

Year ended Mar. 31,
2018First quarter end
Second quarter end
Third quarter end
Year end
AnnualTotal dividend (Millions of yen)
Payout ratio (%)
Dividend on equity (%)

3. Forecast for the year ending March 31, 2020 (Apr. 1, 2019 – Mar. 31, 2020)(Percentages indicated changes from the same period of the previous fiscal year.)Six months ending Sep. 30, 2019
(Millions of yen)(%)
Net sales
Operating income
Ordinary income
Net income attributable toowners of the parent
Net income per share (in yen)※

17,129
2,917
3,001
1,950

(1.4)
11.2
12.4
13.3

16.20

Year ending Mar. 31, 2020
(Millions of yen)
36,000
6,200
6,450
4,250

(%)
0.4
13.5
13.9
16.2

35.29

Others(1) Changes in subsidiaries during the period(Changes in specified subsidiaries resulting in change of scope) ： No
Newly included: - (Name)
Excluded: - (Name)(2) Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) Changes based on revisions of accounting standard： No
2) Changes other than ones based on revisions of accounting standard： No
3) Changes in accounting estimates： No4) Restatement： No(3) Number of outstanding shares (Common stock)1) Number of outstanding shares at year end (Treasury stocks are included)
120,415,600
As of March 31, 2019
120,415,600
As of March 31, 2018
2) Number of treasury stocks at year end
As of March 31, 2019
As of March 31, 2018
3) Average number of outstanding shares
120,415,600
As of March 31, 2019
120,415,600
As of March 31, 2018

※ These financial statements are not subject to auditing.
※ Comment regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements contained in this document are determined by the Takara Bio Company based on information
currently available to the Company and include a number of uncertainties. Actual results could differ from these forecasts due
to changes in conditions that occur in the future. For information regarding the above, please refer to 1. Overview of Financial
Results (4) Future Outlook, on page 3 of the attached document.
The Company will hold a briefing for institutional investors and analysts on May 16, 2019. The material handed out at thisbriefing and a review of questions and answers will be posted on our website.
(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 May 14, 2019 at 15:00 (GMT+8)
Contents of the attached document
1. Overview of Financial Results………………………………………………...........…………………………………………
(1) Overview of Financial Results for the year ended March 31, 2019……………………………………………………….
(2) Overview of Financial Position for the year ended March 31, 2019……………………………………………………...
(3) Overview of Cash Flows for the year ended March 31, 2019…………………………………………………………….
(4) Future Outlook…………………………………………………………………………………………………………….
2. Basic Concept on Selection of Accounting Standards…………………………………………………………….……….….
3. Consolidated Financial Statements and Primary Notes………………………………………………………….……….…...
(1) Consolidated Balance Sheets…………………………………………………………………………………...…….…...
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…….……..……..…….…
(Consolidated Statements of Income) …………………………………………………………………...........…...........
(Consolidated Statements of Comprehensive Income) …………………………………………………………………
(3) Consolidated Statements of Changes in Net Assets…………………………………………………………………….....
(4) Consolidated Statements of Cash Flows…………………………………………………………………………………..
(5) Notes to Consolidated Financial Statements………………………………………………………………………………
(Notes on Premise of Going Concern) …………………………………………………………………………………..
(Change in Indication)…………………………………………………………………………………………………...
(Business Combination-related Events)………………………………………………………………………………….
(Segment Information) …………………………………………………………………………………………………..
(Per Share Information) …………………………………………………………………………………………………
(Significant Subsequent Events) ………………………………………………………………………………………...
4. Supplementary Information …………………………………………………………………………………………………..
(1) Trends in Key Management Indicators……………………………………………………………………………………
(2) Comparative Consolidated Statement of Income …………………………………………………………………………
(3) Comparative Statement of Income relating to Consolidated Earnings Forecasts………………………………………...

- 1 -

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2
3
3
3
3
4
4
6
6
7
8
9
10
10
10
10
12
13
14
14
14
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The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)
1. Overview of Financial Results(1) Overview of Financial Results for the year ended March 31, 2019
In the fiscal year under review, ended March 31, 2019, 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, capital markets and others.
Under these 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 Group (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, the final year of the revised Medium-Term
Management Plan.
As a result, overall net sales in the fiscal year under review, ended March 31, 2019 increased 10.9% year on year to ¥35,841
million, on contributions from sales for research reagents and contracted services 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 genetherapy products in Japan. Cost of sales increased 11.0% year on year to ¥15,155 million, and gross profit increased 10.9% year on
year to ¥20,685 million. Selling, general and administrative (SG&A) expenses increased 0.8% year on year to ¥15,221 million due
to the increase in personnel expenses, but the Company recorded operating income up 53.7% year on year to ¥5,463 million.
Accompanied with the increase in operating income, ordinary income increased 46.7% to ¥5,665 million, income before income
taxes and others increased 43.5% year on year to ¥4,823 million, and net income attributable to owners of the parent increased
56.6% year on year to ¥3,657 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 the Bioindustry Business as its corebusiness, which mainly develops and provides products and services supporting such R&D activities.
In the fiscal year under review, sales of scientific instruments decreased year on year, but sales of research reagents and contracted
service increased year on year.
As a result of the above, sales to external customers for this business increased 6.8% year on year to ¥31,575 million, and grossprofit increased 4.6% year on year to ¥18,369 million due to the increase in sales. SG&A expenses increased 3.7% year on year to¥11,269 million due to the increase in personnel expenses, but the Company recorded operating income up 6.2% year on year to¥7,100 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 celltherapy utilizing the Company’s original technologies such as the RetroNectin method for a high efficiency genetransduction; the RetroNectin expansion-culture system for a high efficient expansion for lymphocytes; as well as
siTCR TM.
In the fiscal year under review, the licensing fees for domestic co-development and exclusive sales related to NY-ESO-1・
siTCRTM and CD19・CAR gene therapy products and sales of the investigational products based on the agreement was generated.
Further, a drug application for marketing approval has been submitted for C-REV as a regenerative medicine product targetingunresectable or metastatic melanoma in March 2019.
As a result, net sales to external customers for this business increased 388.6% year on year to ¥2,443 million, and gross profit
increased 283.2% year on year ¥1,915 million. SG&A expenses decreased 22.7% year on year to ¥1,409 million due to decrease in
R&D expenses. Accordingly, operating income has been highly improved to ¥506 million, compared with operating loss of ¥1,322
million in the same period of previous fiscal year.
AgriBio BusinessThis business uses the Company’s unique leading-edge biotechnology to identify the scientific basis of foodstuffs. Based on thisevidence, the Company develops, manufactures, and sells functional food ingredients. The AgriBio Business has focused on rollingout products related to Gagome kombu (kelp)-derived “Fucoidan,” agar-derived agaro-oligosaccharide, Ashitaba (Angelica herb)derived “Chalcone,” the herb (Peucedanum japonicum)-derived "Isosamidin," yam, (Dioscorea esculenta)-derived “Yamsgenin”,
and mushroom.
In the fiscal year under review, net sales in both functional foods-related products and mushroom-related products declined year2The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)
on year.
Consequently, net sales to external customers for this business decreased 18.8% year on year to ¥1,822 million, and gross profit
decreased 33.5% to ¥399 million. Operating loss was ¥29 million, compared with operating income of ¥107 million in the same
period of previous fiscal year despite SG&A expenses decreased 13.1% to ¥429 million due to the decrease in personnel cost.
The Company’s functional food business has been succeeded to Shionogi Healthcare Co., Ltd. pursuant to the simplified
absorption-type company split with the effective date January 1, 2019. For details, refer to “3. Consolidated Financial Statements
and Primary Note (5) Notes to Consolidated Financial Statements (Business Combination-related Events)”.
Further, the Company’s Mushroom business has been transferred to Yukigini Maitake Co., Ltd. with effective date of March 1,
2019. For details, refer to “3 Consolidated Financial Statements and Primary Note (5) Notes to Consolidated Financial Statements(Business Combination-related Events)”.
(2) Overview of Financial Position for the year ended March 31, 2019
In the fiscal year under review, ended March 31, 2019, total assets were ¥71,040 million, an increase of ¥2,369 million comparedwith that at the end of the previous fiscal year. This primarily resulted from an increase of ¥4,720 million in construction in progressdespite decreases in cash and deposits of ¥503 million and intangible assets of ¥1,535 million.
Total liabilities were ¥6,945 million, an increase of ¥233 million compared with that at the end of the previous fiscal year. This
primarily resulted from an increase of ¥259 million in provision for bonus.
Total net assets stood at ¥64,095 million, an increase of ¥2,136 million compared with that at the end of the previous fiscal year.
The main factors were an increase of ¥3,115 million in retained earnings despite a decrease of ¥1,078 million in foreign currencytranslation adjustment.
(3) Overview of Cash Flows for the year ended March 31, 2019
Net cash provided by operating activities was ¥5,783 million, up by ¥1,847 million compared with the previous fiscal year. Thiswas primarily due to an increase of ¥1,462 million in income before income taxes and others and ¥544 million in provision forbonus.
Net cash provided by investing activities was ¥5,576 million, a decrease of ¥9,179 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 despite increases of ¥4,477 million in purchase of property, plantand equipment and intangible assets.
Net cash used in financing activities was ¥541 million, a decrease of ¥663 million compared with the previous fiscal year. Thiswas primarily because of an elimination of ¥547 million in redemption of bonds occurred in the previous fiscal year.
As a result of the above, cash and cash equivalents at the fiscal year-end, including the effect of exchange rate change on cash
and cash equivalents, stood at ¥9,464 million, down by ¥587 million from the previous fiscal year-end.
(4) Future Outlook
Under the three-year Takara Bio’s Medium-Term Management Plan FY2020 (“the Plan”) which FY2020 is the final year of thePlan, the Company aims to implement the strategies outlined in the Plan, enhance its standing as a global enterprise and regenerative
medical product company, and achieve prodigious growth.
In the fiscal year ending March 31, 2020, the final year of the plan, the Company is forecasting net sales of ¥36,000 million,
operating income of ¥6,200 million, ordinary income of ¥6,450 million and net income attributable to owners of the parent of¥4,250 million.
As for targets for fiscal FY2020, the final year of the Plan disclosed on May 11, 2018 (net sales of ¥38,500 million and operating
income of ¥6,000 million), the Company has downwardly revised net sales due to influence by business transfer, etc. of functional
foods and mushrooms, but upwardly revised operating income by absorbing this influence.
For a comparison of results between the year ended March 31, 2019 and the year ended March 31, 2020, refer to “4.
Supplementary Information (3) Comparative Statement of Income Relating to Consolidated Earnings Forecasts” on page 16.

2. Basic Concept on Selection of Accounting Standards
The Company drafts consolidated financial statements based on Japanese standards taking into consideration comparability
between fiscal periods as well as comparability among companies.
The Company’s policy regarding the application of International Financial Reporting Standards is to apply them as appropriate
after taking into consideration domestic and international circumstances.

3

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)
3. Consolidated Financial Statements and Primary Notes(1) Consolidated 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
Technology assets
Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Net defined benefit asset
Other
Total investments and other assets
Total noncurrent assets
Total assets- 4 -As of Mar. 31, 201917,537
8,031
2,000
4,484
334
1,192
978
(42)
34,516

17,033
8,604
2,000
4,523
706
1,506
941
(41)
35,275

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

11,775(5,435)6,340
5,510(3,745)
1,764
6,890(4,588)
2,302
6,213
15
(15)
－
4,784
21,404

8,259
4,670
1,233
14,163

7,589
3,858
1,171
12,628

800
472
95
87
1,456
34,154
68,670

684
839
91
116
1,732
35,76571,040

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(Millions of yen)
As of Mar. 31, 2019

As of Mar. 31, 2018
Liabilities
Current liabilities
Notes and accounts payable-trade
Accounts payable-otherAccrued income taxes
Provision for bonus
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
Non-controlling interests
Total net assets
Total liabilities and net assets

- 5 -

1,875
1,905
431
333
1,199
5,745

1,536
2,044
391
593
1,451
6,017

659
307
966
6,711

667
260
927
6,945

14,96532,893
12,28560,144

14,96532,893
15,401
63,260

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

964
(215)
749
85
64,09571,040

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Year ended
Mar. 31, 2019Year ended
Mar. 31, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Promotion expenses
Provision of allowance for doubtful accounts
Employees' salaries and bonuses
Provision for accrued bonuses
Retirement benefit expenses
R&D expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Subsidy income
Foreign exchange gains
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
Gain on business transfer
Insurance proceeds due to disaster
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss due to disasterIndemnifiable loss
Total extraordinary losses
Income before income taxes and others
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to:Non-controlling interest
Owners of the parent- 6 -32,312
13,657
18,65535,841
15,155
20,685

729
11
3,675
164
177
4,653
5,687
15,099
3,555

703
3
4,048
327
173
4,337
5,627
15,221
5,463

77
197
5
88
32
402

89
94
－
86
36
307

19
－
28
45
2
96
3,861

－
29
39
13
23
105
5,665

0
－
－
0

1
90
54
146

55
446
－
－
501
3,361
1,155
(132)
1,023
2,388

99
696
131
60
988
4,823
1,453
(303)
1,149
3,673

3
2,335

15
3,657

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(Consolidated Statements of Comprehensive Income)(Millions of yen)
Year ended
Mar. 31, 2019Year ended
Mar. 31, 2018
Net income
Other comprehensive income
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive attributable to:
Owners of the parent
Non-controlling interest

- 7 -

2,338

3,673

21
95
117
2,455

(1,088)
119
(968)
2,705

2,449
5

2,699
5

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(3) Consolidated Statements of Changes in Net Assets
Previous Fiscal Year (Apr. 1, 2017 – Mar. 31, 2018)(Millions of Yen)
Shareholders' equity

Capital stock
Balance at the
beginning of current
periodChanges of items during
the period
Dividends fromsurplus
Net income (loss)
attributable to ownersof the parent
Purchase of shares of
consolidated
subsidiaries
Net changes of items
other thanshareholders' equity
Total changes of items
during the period
Balance at the end ofcurrent period

14,965

Capitalsurplus32,893Retainedearnings

Accumulated other comprehensive income
Total
Total
Foreign currency Remeasurements accumulatedshareholders'translationof defined
otherequityadjustment
benefit planscomprehensive
income
(429)

1,593

Total
net assets

100

59,985

10,43258,291

(481)

(481)

(481)

2,335

2,335

2,335

(0)

2,023

Noncontrollinginterests

(0)

0

－

19

95

114

5

120

－

(0)

1,853

1,853

19

95

114

5

1,973

14,96532,893

12,28560,144

2,042

(334)

1,707

106

61,959Fiscal Year under Review (Apr. 1, 2018 – Mar. 31, 2019)(Millions of Yen)
Shareholders' equity

Capital stock
Balance at the
beginning of current
periodChanges of items during
the period
Dividends fromsurplus
Net income (loss)
attributable to ownersof the parent
Purchase of shares of
consolidated
subsidiaries
Net changes of items
other thanshareholders' equity
Total changes of items
during the period
Balance at the end ofcurrent period

14,965

Capitalsurplus32,893Retainedearnings

Accumulated other comprehensive income
Total
Total
Foreign currency Remeasurements accumulatedshareholders'translationof defined
otherequityadjustment
benefit planscomprehensive
income
2,042

(334)

1,707

Noncontrollinginterests

Total
net assets

106

61,95912,28560,144

(541)

(541)

(541)

3,657

3,657

3,657

－

－
(1,078)

119

(958)

(21)

(979)

－

－

3,115

3,115

(1,078)

119

(958)

(21)

2,136

14,96532,893

15,401

63,260

964

(215)

749

85

64,095- 8 -The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(4) Consolidated Statements of Cash Flows(Millions of Yen)

Year ended
Mar. 31, 2018
Net cash provided by (used in) operating activities
Income before income taxes and others
Depreciation and amortization
Impairment loss
Depreciation and amortization on other
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonus
Increase (decrease) in net defined benefit liability
Interest income
Interest expenses
Loss (gain) on sales and retirement of non-current assets
Disaster loss
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
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 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
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- 9 -Year ended
Mar. 31, 2019
3,361
2,568
446
160
489
0
(276)
35
(77)
19
54
－

4,823
2,691
696
182
502
1
267
8
(89)
－
98
131

(246)

(974)

(301)
(341)
(675)
(197)
5,020
94
(3)
(1,175)
3,935(1,536)
(199)
546
(236)
6,914
82
－
(1,213)
5,783(12,383)
10,860(4,000)4,000(14,667)
14,395(4,000)4,000(1,499)(5,977)

465

7

(93)
－

(105)
764

(12,396)－291(14,755)

5(5,576)

(130)
(547)
(480)
(46)
(1,205)(123)(12,149)
22,20010,051

－
－
(541)
－
(541)
(252)
(587)
10,051
9,464

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
No items to report.
(Change in Indication)(Changes associated with 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 fiscal year ended March 31, 2019. Category statement to investments
and other assets for deferred tax assets and to noncurrent liabilities for deferred tax liability has been made.
As a result, in consolidated balance sheets for the previous fiscal year ended March 31, 2019, “deferred tax assets” under “current
assets” decreased ¥515 million, and “deferred tax assets” under “investments and other assets” increased ¥332 million. Also,“deferred tax liabilities” under “noncurrent liabilities” decreased ¥183 million.
Further, the description has been made by setoff of identical tax payment-based deferred tax assets and deferred tax liabilities,
and the total assets decreased ¥183 million in comparison to those before change.
(Business Combination-related Events)(Business divestiture of functional foods)
The Company’s functional food business has been succeeded to Shionogi Healthcare Co., Ltd. pursuant to the simplified
absorption-type company split with the effective date January 1, 2019.
1.

Overview of business divestiture(1) Successor company name and business description① Name of successor company: Shionogi Healthcare Co., Ltd. (Shionogi Healthcare)② Description of business divestiture: Functional food business(2) Reason of business divestiture
The three-year Takara Bio’s Medium-Term Management Plan 2020 started in FY2018 aims to promote threebusinesses: Bioindustry, Gene Therapy, and AgriBio business, enhance the Company’s standing as a global enterpriseand regenerative medical product company, and 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“selection and concentration” in business operation and achieving the Plan. With this background, the Company 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 with Shionogi Healthcare, agroup company of Shionogi Healthcare & Co., Ltd. strengthening the functional food business, the Company has 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 legal form
This is an absorption-type company split in which Shionogi Healthcare is the successor company. Transaction ofcompensation receivable is done only in cash.

2.

Outline of account processing conducted(1) Amount of profit and loss on transfer
Profit on business transfer
76 million yen(2) Book value of assets and liabilities for business transfer and major description
Current assets(Millions of yen)400

Non-current assets
Total assets

143
544

Current liabilities
Non-current liabilities

120

Total liabilities(3) Account processing

12

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
10The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)

4.

AgriBio business
Estimated amount of profit and loss on business divestiture on consolidated financial statements for the year ended March 31,
2019
Net sales

Operating income(Business Divestiture of mushrooms)

409 million yen
6 million yen

The Company’s mushroom business has been transferred to Yukigini Maitake Co., Ltd. with effective date of March 1, 2019.
1. Overview of business divestiture(1) Successor company name and business description① Name of successor company: Yukiguni Maitake Co., Ltd. (Yukiguni Maitake)② Description of business divestiture: Mushroom business(2) Reason of business divestiture
The three-year Takara Bio’s Medium-Term Management Plan 2020 started in FY2018 aims to promote threebusinesses: Bioindustry, Gene Therapy, and AgriBio business, enhance the Company’s standing as a global enterpriseand regenerative medical product company, and 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“selection and concentration” in business operation and achieving the Plan. With this background, the Company has been
seeking a company to continue the business manufacturing and selling the mushrooms with utmost use of corporate
resource accumulated. As a result of discussion and negotiations with Yukiguni Maitake having Japan’s top share in the
Maitake mushroom market and expanding the production and sales for various mushrooms, the Company has decided
to implement a business transfer.
(3) Divestiture date
March 1, 2019(4) Matters related to summary of other transactions with legal form
Business transfer to be a property of consideration for cash
2.

Outline of account processing conducted(1) Amount of profit and loss on transfer
Profit on business transfer
14 million yen(2) Book value of assets and liabilities for business transfer and major description
Current assets(Millions of yen)347

Non-current assets
Total assets

194
541

Current liabilities
Non-current liabilities

337
0

Total liabilities
337
Note. In the fiscal year under review, ended March 31, 2019, noncurrent assets subject to transfer is reduced book value
to amount collectable, and the impairment loss of ¥655 million has been appropriated as extraordinary losses.
(3) Account processing
Balance between compensation received in cash based on the transfer and equivalents to shareholder’s equity in thebusiness transfer is deducted the divestiture fees to assess the profit and loss on transfer.
3.

Reportable segment involved in business divestiture
AgriBio business

4.

Estimated amount of profit and loss on business divestiture on consolidated financial statements for the fiscal year underreview, ended March 31, 2019.
Net sales
Operating income

1,417 million yen
36 million yen

11The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(Segment Information)
1. Outline of reportable segments
The Company’s reportable segments are components of the Company for which separate financial information is available
that is evaluated regularly by the Board of Directors to determine allocation of management resources and assess performance.
The Company has established business divisions by product and service. Each division drafts comprehensive strategies forthe products and service including Japanese and overseas subsidiaries and implements them in their business activities.
Accordingly, the Company is comprised of segments by products and services based on these business divisions and has
defined three reportable segments. These three reportable segments are Bioindustry, Gene Therapy, and AgriBio.
The primary products, etc. of each segment are presented in the following table.
The Company’s functional food business and mushroom business in AgriBio segment have been transferred on January 1,
2019 and March 1, 2019, respectively.
Reportable segment
Bioindustry
Gene Therapy
AgriBioPrimary products, etc.
Research reagents (genetic, cellular and protein engineering reagents), scientific instruments,
contracted services and compensation for gene related patents, etc.
Licensing fees for development and sales relating to the gene therapy products, investigational
products
Functional foods, functional food R&D contracting, compensation for patents, etc., relating tofunctional foods, mushrooms, and compensation for patents relating to mushrooms, etc.

2. Calculation method for net sales, income or loss, assets, liabilities, and other items of each reportable segment
The accounting treatment of reportable business segments is in accordance with the accounting policies adopted for thecreation of consolidated financial statements.
The figures for the income of reportable segments are based on operating income.
Corporate income is based on the prevailing market price.
3. Net sales, income (loss), assets, liabilities, and other items by reportable segment
Previous Fiscal Year (From Apr. 1, 2017, to Mar. 31, 2018)

Bioindustry

Gene
Therapy

AgriBio

29,568
－

500
－

2,243
7

32,312
7

Total

Adjustment(Note: 1)(Millions of yen)Amountrecognized inconsolidated
financialstatements(Note: 2)

Net sales
External customers
Corporate－(7)32,312－

29,568500

2,251

32,320(7)

32,312

Segment income (loss)

6,683(1,322)

107

5,467

(1,912)

3,555

Segment assets

52,185

2,594

2,165

56,946

11,724

68,670

Total

Other items
Depreciation and amortization
2,049
300
90
2,441
127
2,568
－
－
－
Amortization of goodwill
489
489
489
Increase in total fixed assets,
property, plant and equipment
1,302
118
32
1,453
85
1,539
and intangible assets
Notes: 1. The adjustment for segment income (loss) was a loss of ¥1,912 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 financial statements.

12

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)
Fiscal Year under Review (From Apr. 1, 2018, to Mar. 31, 2019)

Net sales
External customers
Corporate
Total

Bioindustry

Gene
Therapy

31,575
－

2,443
－

1,822

3,5841

－

5

5

(5)

35,841－AgriBio

Adjustment(Note: 1)(Millions of yen)Amountrecognized inconsolidated
financialstatements(Note: 2)

Total

31,575

2,443

1,827

35,846(5)35,841

Segment income (loss)

7,100

506

(29)

7,578

(2,114)

5,463

Segment assets

57,514

3,212－

60,727

10,31071,040

Other items
Depreciation and amortization

2,262
229
73
2,566
125
2,691
－
－
－
Amortization of goodwill
502
502
502
Increase in total fixed assets,
property, plant and equipment
4,880
1,035
23
5,939
62
6,002
and intangible assets
Notes: 1. The adjustment for segment income (loss) was a loss of ¥2,114 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 financial statements.
4.

Information about impairment loss for non-current assets by reportable segment
Previous fiscal year (From Apr. 1, 2017, to Mar. 31, 2018)(Millions of yen)
Bioindustry
Impairment loss

Gene Therapy－

AgriBio－

Reconciliations

Consolidated

446

446

－

Notes: The amount of “Reconciliations” is impairment loss of corporate assets which does not belong to the reportablesegments.
Fiscal year under review (From Apr. 1, 2018, to Mar. 31, 2019)(Millions of yen)
Impairment loss

Bioindustry

Gene Therapy－－

AgriBio

Reconciliations

Consolidated

－

696

696

(Per Share Information)
Year ended Mar. 31, 2018
(Apr. 1, 2017 - Mar. 31, 2018)Year ended Mar. 31, 2019
(Apr. 1, 2018 - Mar. 31, 2019)¥513.66¥531.57

Net assets per share¥19.39Net income per share
Notes: 1. Fully diluted net income per share is not presented since there were no potential shares.
2. The basis of calculation of net income per share is as follows.

¥30.38Year ended Mar. 31,2018
Year ended Mar. 31,2019(Apr. 1, 2017 - Mar. 31, 2018) (Apr. 1, 2018 - Mar. 31, 2019)
Net income per share
Net income attributable to owners of the parent(¥ million)
Amount not attributable to common shareholders(¥ million)
Net income attributable to owners of the parent inaccordance with the common stock (¥ million)
Average number of shares outstanding during the term
(1,000 shares)
13

2,335

3,657

－

－

2,335

3,657

120,415

120,415

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(Significant Subsequent Events)
No items to report
4. Supplementary Information(1) Trends in Key Management Indicators1). Cash Flow
Term

(Millions of yen)
Year ended Mar. 31, 2019Year ended Mar. 31, 2018
(Apr. 1, 2017 - Mar. 31, 2018)(Apr. 1, 2018 - Mar. 31, 2019)

Net cash provided by (used in) operating activities

3,935

5,783

Net cash provided by (used in) investing activities(14,755)(5,576)

Net cash provided by (used in) financing activities(1,205)(541)

2). Net Sales by Region(Millions of yen)
Year ended Mar. 31, 2019
(Apr. 1, 2018 - Mar. 31, 2019)Year ended Mar. 31, 2018
(Apr. 1, 2017 - Mar. 31, 2018)Japan

14,266

16,101

U.S.

7,240

7,945

China

5,524

6,227

Asia excluding Japan and China

1,754

1,994

Europe

3,257

3,328

Other

268

244

32,31235,841

Total
3). R&D Expenses by Reportable Segment

Year ended Mar. 31, 2018

(Millions of yen)
Year ended Mar. 31, 2019

(Apr. 1, 2017 - Mar. 31, 2018)(Apr. 1, 2018 - Mar. 31, 2019)

Bioindustry

2,693

2,723

Gene therapy

1,804

1,391

AgriBio

6－

Corporate

148

222

4,653

4,337

Total

- 14 -

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(2) Comparative Consolidated Statement of Income(Rounded down to one million yen)
Year ended
Mar. 31, 2018
ActualYear ended
Mar. 31, 2019
ActualYear on year
ChangeYear on year
Ratio

（Net Sales）
Research reagents
Scientific instruments
Contracted services
Other
Bioindustry Total
Gene therapy
Functional foods
Mushrooms
AgriBio total

22,207
2,635
4,210
514
29,568
500
693
1,550
2,243

23,601
2,570
4,954
449
31,575
2,443
409
1,412
1,822

1,393
(64)
743
(65)
2,006
1,943
(283)
(137)
(421)

106.3%
97.5%
117.6%
87.3%
106.8%
488.6%
59.1%
91.1%
81.2%

Total net sales

32,31235,841

3,528

110.9%(Operating Income and Loss)
Net sales

32,31235,841

3,528

110.9%

Cost of sales

13,65715,1551,497

111.0%

Gross profits

18,655

20,6852,030

110.9%

SG&A expenses

15,09915,221

121

100.8%

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

643
83
729
4,653
8,750
239

492
56
703
4,337
9,361
270

(151)
(26)
(26)
(316)
610
31

76.5%
67.9%
96.4%
93.2%
107.0%
113.0%

Operating income

3,555

5,463

1,908

153.7%

402

307

(95)

76.3%

96

105

9

110.2%

3,861

5,665

1,803

146.7%(Non-operating Income and Expenses)
Non-operating income
Non-operating expenses
Ordinary income(Extraordinary Income & Losses)
Extraordinary income

0

146

145

18,993.3%

501

988

486

197.0%

Income before income taxes and others

3,361

4,823

1,462

143.5%

Income taxes

1,023

1,149

126

112.4%Net Income
Net income (loss) attributable to non-controllinginterests
Net income attributable to owners of the parent

2,338

3,673

1,335

157.1%

315

12

522.5%

2,335

3,657

1,322

156.6%

2,568

2,691

122

104.8%

489

502

13

102.7%

Year on year
ChangeYear on year
Ratio

Extraordinary losses

Depreciation and amortization (Property, plant andequipment and intangible assets)
Amortization of goodwill
Profit and loss by business segment (Operating income)Year ended
Mar. 31, 2018
ActualBioindustry
Gene therapy
AgriBio
Corporate
Total- 15 -

Year ended
Mar. 31, 2019
Actual6,683(1,322)107(1,912)

7,100
506
(29)
(2,114)

417
1,829
(136)
(202)

106.2%
－
－
－

3,555

5,463

1,908

153.7%

The original disclosure in Japanese was released on May 14, 2019 at 15:00 (GMT+8)(3) Comparative Statement of Income relating to Consolidated Earnings Forecasts(Rounded down to one million yen)
Year ended
Mar. 31, 2019
ActualYear ending
Mar. 31, 2020
Forecast

Year on year ChangeYear on year Ratio

105.9%（Net Sales）
Research reagents

23,601

24,990

1,389

Scientific instruments

2,570

2,108

(462)

82.0%

Contracted services

4,954

5,800

846

117.1%

Other

449

403

(46)

89.7%

Bioindustry Total

31,57533,302

1,727

105.5%

Gene therapy

2,443

2,697

253

110.4%

Others (Former AgriBio)

1,822

－

(1,822)－

Total net sales

35,841

36,000158

100.4%Net sales

35,841

36,000158

100.4%

Cost of sales

15,155

14,053(1,102)

92.7%

Gross profits

20,68521,9461,261

106.1%

SG&A expenses

15,221

15,746525

103.4%

Transportation expenses

492

500

8

101.7%

Advertising expenses

56

86

29

152.7%

Promotion expenses

703

674

(29)

95.9%

R&D expenses

4,337

4,292

(44)

99.0%

Administrative expenses, other
Enterprise taxes(external standards taxation)

9,361

9,896

534

105.7%

270

296

25

109.6%

Operating income

5,463

6,200

736

113.5%

307

320

13

104.4%

105

70

(35)

66.5%

5,665

6,450

784

113.9%(Operating Income and Loss)(Non-operating Income and Expenses)
Non-operating income
Non-operating expenses
Ordinary income(Extraordinary Income & Losses)
Extraordinary income

146

0

(146)

0.2%

Extraordinary losses

988

299

(688)

30.3%

Income before income taxes andothers

4,823

6,150

1,326

127.5%

Income taxes

1,149

1,887

738

164.2%Net Income

3,673

4,262

588

116.0%Net income (loss) attributable tonon-controlling interests
Net income attributable toowners of the parent

15

12

(3)

78.7%

3,657

4,250

592

116.2%

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

2,691

2,957

265

109.9%

502

491

(11)

97.8%

Year on year ChangeYear on year Ratio

Amortization of goodwill
Profit and loss by business segment (Operating income)Year ended
Mar. 31, 2019
ActualYear ending
Mar. 31, 2020
Forecast

Bioindustry

7,100

7,750

649

109.2%

Gene therapy

506

996

489

196.6%

Others (Former AgriBio)

(29)

－

29

－

Corporate(2,114)(2,546)

(432)

－

Total

5,463

6,200

736

113.5%- 16 -