Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

November 9, 2023

Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

Takara Bio Inc.
Tokyo Stock Exchange4974
https://www.takara-bio.co.jp
Koichi Nakao, President & CEO

Takuya Kakemi, Executive Officer, Head of Corporate Management Division

Telephone:+81-775-565-6970
Scheduled date to file quarterly securities report:
November. 10, 2023
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended Sep. 30, 2023 (from Apr. 1, 2023 to Sep. 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended

Operating profit

Millions of yen%

Sep. 30, 2023

19,116

Sep. 30, 2022

32,587

Note: Comprehensive income(Percentages indicate year-on-year changes.)

Millions of yen%(41.3)

1,410

3.3

10,870Millions of yen%

Millions of yen%(87.0)

1,598(85.4)

1,084(87.3)(22.9)

10,955(23.1)

8,538(14.7)For the six months ended Sep. 30, 2023:
For the six months ended Sep. 30, 2022:

Basic earnings
per share

Profit attributable toowners of parent

Ordinary profit¥4,733 million¥14,858 million(68.1%)(19.9%)

Diluted earnings
per share

Six months ended

Yen

Yen

Sep. 30, 2023

9.00

-

Sep. 30, 2022

70.91

-

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

yen

Sep. 30, 2023

123,283

112,13090.7

928.91Mar. 31, 2023

129,202112,45486.9

931.93

Reference:

EquityAs of Sep. 30, 2023:
As of Mar. 31, 2023:¥111,855 million¥112,219 million

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

-

0.00

-

42.00

42.00

-

0.00
-

17.00

17.00

Fiscal year ended
Mar. 31, 2023
Fiscal year ending
Mar. 31, 2024
Fiscal year ending
Mar. 31, 2024
(Forecast)Fiscal year-end

Total

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial forecast for the year ending March 31, 2024 (Apr. 1, 2023 – Mar. 31, 2024)(Percentages indicate year-on-year changes for the full year and year-on-year changes for the quarter.)

Net sales
Millions of yen

Full-year
Note:*

45,500Operating profit% Millions of yen(41.8)

3,000

Profit attributable toowners of parent

Ordinary profit

Net income per
share

%

Millions ofyen%Millions of
yen

%

yen

(85.4)

3,200(84.5)

2,000(87.5)

16.61

Revisions to the financial forecast since the most recent announced: Yes

Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included: - companies (Company name)
Excluded:- companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of Sep. 30, 2023

120,415,600 shares

As of Mar. 31, 2023

120,415,600 shares(ii) Number of treasury shares at the end of the period
As of Sep. 30, 2023-

shares

As of Mar. 31, 2023-

shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Six months ended Sep. 30, 2023

120,415,600 shares

Six months ended Sep. 30, 2022

120,415,600 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants oran audit corporation.

* Comment regarding appropriate use of earnings forecasts and other special notes

Forward-looking statements contained in this document are determined by the Takara Bio Inc. (the “Company”) basedon 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, pleaserefer to “1. Overview of Financial Results for the Six Months ended September 30, 2023 (4) Explanation ofConsolidated Financial Forecasts and Other Forward-looking Statements” on page 2 of the attached document.

Contents of the attached document
1. Overview of Financial Results for the Six Months Ended September 30, 2023.......................................................................
2(1) Overview of Financial Results.............................................................................................................................................
2(2) Overview of Financial Position............................................................................................................................................
2(3) Overview of Cash Flows......................................................................................................................................................
2(4) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements................................................. 2
2. Consolidated Quarterly Financial Statements and Primary Notes............................................................................................. 3(1) Consolidated Quarterly Balance Sheets...............................................................................................................................
3(2) Consolidated Quarterly Statements of Profit or Loss and Consolidated Quarterly Statements of Comprehensive Income.........
5(Consolidated Quarterly Statements of Profit or Loss)...................................................................................................
5(Consolidated Quarterly Statements of Comprehensive Income)...................................................................................
6(3) Consolidated Quarterly Statements of Cash Flows..............................................................................................................
7(4) Notes to Consolidated Quarterly Financial Statements........................................................................................................
8(Notes on Premise of Going Concern)...............................................................................................................................
8(Notes in case of Changes in Marked Amount of Shareholders’ Equity)..........................................................................
8
3. Supplementary Information.......................................................................................................................................................
8(1) Trends in Key Indicators for Business Management...........................................................................................................
8(2) Comparative Consolidated Statement of Income.................................................................................................................
9(3) Comparative Statement of Income Relating to Consolidated Financial Forecasts.............................................................. 10-1-

1. Overview of Financial Results for the Six Months ended September. 30, 2023
(1) Overview of Financial Results
The outlook for the global economy during the six months ended September 30, 2023 is uncertain due to the prolonged inflation, a
slowdown in the Chinese economy, and Russia’s invasion of Ukraine.
Under these circumstances, in the six-year Long-Term Management Plan FY2026, which is the final year of FY2026, and the threeyear Medium-Term Management Plan 2026, which is the final year of FY2026, we have promoted the development of basic
biotechnology-based biologics development technologies through Reagents / Instruments business and CDMO business, and havepromoted initiatives aimed at becoming a global platform provider responsible for the infrastructure of the life science industry.
For the six months ended September 30, 2023, net sales decreased to ¥19,116 million (down 41.3% year-on-year) due to a decreaseof sales of test-related reagents resulting from a change in the legal positioning of new Coronavirus infectious disease. Cost of sales
decreased to ¥5,772 million (down 45.3% year-on-year) due mainly to a decrease in sales. As a result, gross profit decreased to¥13,343 million (down 39.4% year-on-year). Selling, general and administrative (SG&A) expenses were ¥11,933 million (up 7.0%
year-on-year) due to an increase in personnel expenses, research and development (R&D) expenses, etc., and operating profit was¥1,410 million (down 87.0% year-on-year).
As a result of the decrease in operating profit, ordinary profit decreased by ¥1,598 million (down 85.4% year-on-year), profit before
income taxes and others was ¥1,588 million (down 86.6% year-on-year), and net income attributable to owners of the parent was¥1,084 million (down 87.3% year-on-year).
Since our group is a single segment, the disclosure by segment is omitted.
(2) Overview of Financial Position
Total assets at the end of the six months ended September 30, 2023 were ¥123,283 million, a decrease of ¥5,918 million from the endof the previous fiscal year. This was mainly due to decreases of ¥13,435 million in cash and deposits and ¥3,165 million in notes andaccounts receivable-trade, despite increases of ¥9,352 million in property, plant and equipment, ¥523 million in other current assets,and ¥335 million in merchandise and finished goods, mainly due to payments related to the contract for the construction of the Center
for Gene and Cell Processing III.
Total liabilities at the end of the six months ended September 30, 2023 were ¥11,153 million, a decrease of ¥5,594 million from theend of the previous fiscal year. This was mainly due to decreases of ¥4,675 million in other current liabilities, ¥382 million in Accrued
income taxes, and ¥262 million in notes and accounts payable-trade.
Total net assets at the end of the six months ended September 30, 2023 were ¥112,130 million, a decrease of ¥324 million from theend of the previous fiscal year. This was mainly due to a decrease of ¥3,973 million in retained earnings, despite an increase of ¥3,577
million in foreign currency translation adjustment due to the yen's depreciation.
(3) Overview of Cash FlowsNet cash provided by operating activities amounted to ¥2,087 million, a decrease of ¥6,584 million compared with the same periodof the previous fiscal year. This was mainly due to cash inflow from a decrease in trade receivable of ¥3,493 million, depreciation andamortization of ¥2,132 million, quarterly profit before income taxes of ¥1,588 million, and cash outflow from a decrease in
consumption taxes payable of ¥2,561 million, a decrease in other current liabilities of ¥1,368 million, income taxes paid of ¥550
million, a decrease in notes and accounts payable-trade of ¥463 million.
Net cash used in investing activities amounted to ¥10,805 million, an increase of ¥3,287 million compared with the same period of
the previous fiscal year. This was mainly due to purchases of property, plant and equipment and intangible assets of ¥11,407 million,
payments into time deposits of ¥1,298 million, and proceeds from withdrawal of time deposits of ¥1,925 million.
Net cash used in financing activities was ¥5,126 million, mainly due to cash dividends paid of ¥5,047 million, an increase of ¥1,092
million compared with the same period of the previous fiscal year.
As a result of the above, the balance of cash and cash equivalents at the end of the six months ended September 30, 2023, including
the effect of exchange rate change on cash and cash equivalents, decreased by ¥12,993 million from the end of the previous fiscal
year to ¥36,065 million.
(4) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
The consolidated financial forecast announced in the financial results report on May 11, 2023 has been revised. For details, pleaserefer to the "Notice Concerning Revisions to the Financial Results Forecasts" announced today (November 9, 2023).
For a comparison of the revised consolidated financial forecast with the previous fiscal year's results and the previous forecast, pleaserefer to the "Comparative Statement of Income Relating to Consolidated Financial Forecasts" on page 10.

-2-2. Consolidated Quarterly Financial Statements and Primary Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)

As of Mar. 31, 2023
AssetsCurrent asset
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current 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
LandConstruction in progress
Others
Accumulated depreciation
Others, net
Total Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investments and other assets
Total investments and other assets
Total non-current assets
Total assets-3-

As of Sep. 30, 2023

51,847
12,567
6,248
1,125
3,714
2,184
(118)
77,56938,412
9,402
6,584
1,356
3,914
2,707
(92)
62,28528,098(7,064)
21,0348,384(4,883)3,500
10,569(6,229)
4,340
8,654
2,102
1,748
(425)
1,323
40,95629,193(7,798)21,394
8,951(5,322)
3,628
11,383(6,907)
4,475
8,943
10,546
1,830
(510)
1,319
50,308

6,674
2,372
9,047

6,963
2,087
9,050

1,627
1,627
51,632
129,202

1,639
1,639
60,998123,283

(Millions of yen)
As of Mar. 31, 2023
Liabilities
Current liabilities
Notes and accounts payable-trade
Accrued income taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Retirement benefit liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Cumulative remeasurements of retirement
benefit
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-4-

As of Sep. 30, 2023

2,323
672
1,065
10,313
14,375

2,061
289
933
5,638
8,922

992
1,379
2,372
16,747

1,054
1,177
2,231
11,153

14,96532,89357,047104,906

14,96532,89353,074
100,933

7,680
(367)

11,257
(335)

7,312

10,922

235
112,454
129,202274
112,130
123,283(2) Consolidated Quarterly Statements of Profit or Loss and Consolidated Statements of Comprehensive Income(Consolidated Statements of Profit or Loss)(Millions of yen)
Net sales
Cost of sales
Gross profit
SG&A expenses
Employees' salaries and bonuses
Retirement benefit expenses
R&D expenses
Provision of allowance
Other
Total SG&A expenses
Operating profit
Non-operating income
Interest income
Foreign exchange gains
Rent income from real estate
Other
Total non-operating income
Non-operating expense
Interest expenses
Foreign exchange losses
Rent expenses on real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary gains
Gain on sale of fixed assets
Insurance received
Total extraordinary profit
Extraordinary losses
Loss on sale and retirement of non-current
assetsOthersTotal 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
Net income attributable to owners of the parent

Six months ended
Sep. 30, 2022
32,587
10,562
22,025-5-

Six months ended
Sep. 30, 2023

19,116
5,772
13,343

2,758
122
3,853
433
3,986
11,154
10,870

2,904
161
4,241
365
4,260
11,933
1,410

65
72
33
170

84
74
78
11
248

12
38
32
1
85
10,955

12
35
11
59
1,598

250
652
902

1
1

12

12

14
27
11,831
2,538
721
3,259
8,572
33
8,538

12
1,588
684
(195)
489
1,099
14
1,084

(Consolidated Quarterly Statements of Comprehensive Income)(Millions of yen)Six months ended
Sep. 30, 2022
Net income
Other comprehensive income
Foreign currency translation adjustment
Remeasurements of retirement benefit
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interest-6-

Six months ended
Sep. 30, 2023
8,572

1,099

6,264
21
6,286
14,858

3,601
32
3,634
4,733

14,798
59

4,693
39

(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)Six months ended
Sep. 30, 2022

Net cash provided by (used in) operating activities
Profit before income taxes and others
Depreciation and amortization
Depreciation and amortization on other
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in retirement benefit liabilities
Interest income
Interest expenses
Insurance claim income
Loss (gain) on sale and retirement of fixed assets
Decrease (increase) in trade receivables-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in consumption taxes payable
Increase (decrease) in other current liabilities
Other
SubtotalInterest and dividend income received
Income expenses paid
Income taxes paid
Proceeds from insurance income
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceed from withdrawal of time deposits
Purchase of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Purchase of other depreciable assets
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
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-7-

Six months ended
Sep. 30, 2023

11,831
1,962
35
280
(20)

1,588
2,132
50
307
(34)

(22)
(1)
(65)
12
(652)
(238)
2,055
960
(615)

(169)
58
(84)
12
10
3,493
(218)
(463)

750
(2,716)513
14,07055(13)(6,093)652
8,672(2,561)(1,368)
(193)
2,560
89
(11)
(550)
2,087

(5,527)792(3,076)(1,298)
1,925(11,407)

394

1

(111)
10
(7,518)(24)(2)(10,805)(3,965)(69)(4,034)
1,325(5,047)(79)(5,126)851(1,554)
22,16020,606(12,993)
49,05836,065

(4) Notes to Consolidated Quarterly Financial Statements(Notes on Premise of Going Concern)
No items to report.
(Notes in case of Changes in Marked Amount of Shareholders’ Equity)
No item to report.

3. Supplemental Information(1)Trends in Key Indicators for Business Management
1) Cash FlowsSix months ended
Sep. 30, 2022

(Apr. 1, 2022 – Sep. 30, 2022)

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

8,672(7,518)(4,034)Six months ended
Sep. 30, 2023

(Apr. 1, 2023 – Sep. 30, 2023) (Apr. 1, 2022– Mar. 31, 2023)

2,087(10,805)(5,126)2) Sales Breakdown by Region
Six months ended
Sep. 30, 2022

Japan
United States
China
Asia excluding Japan and China
EuropeOthers
Total(Apr. 1, 2022 – Sep. 30, 2022)

16,298
6,263
5,388
1,860
2,643
132
32,587-8-(Millions of yen)
Year ended
Mar. 31, 2023

Six months ended
Sep. 30, 2023

36,897(6,693)(4,119)(Millions of yen)
Year ended
Mar. 31, 2023

(Apr. 1, 2023 – Sep. 30, 2023) (Apr.1, 2022 – Mar. 31, 2023)

6,298
5,892
2,986
1,639
2,162
137
19,11645,667
12,886
10,799
3,546
4,949
293
78,142

(2) Comparative Consolidated Statement of Income(Net sales)
Reagents
Instruments
CDMO
Gene Therapy
Total net sales(Operating profit and Loss)
Net sales
Cost of sales
Gross profit
SG & A expenses
Transportation expenses
Advertising expenses
Promotion expenses
R&D expenses

Six months ended
Sep. 30, 2022

(Rounded down to one million yen)Six months ended
Y/Y
Y/Y
Sep. 30, 2023
changeratio

27,565
694
3,183
1,144
32,587

14,949
411
2,702
1,052
19,116(12,615)
(282)
(480)
(91)
(13,470)(45.8%)(40.7%)(15.1%)(8.0%)(41.3%)

32,587
10,562
22,025
11,154
330
21
306
3,853
6,412
229

19,116
5,772
13,343
11,933
285
32
347
4,241
6,872
154

(13,470)(4,789)(8,681)
778
(45)
10
40
387
460
(75)

(41.3%)(45.3%)(39.4%)
7.0%(13.7%)
48.8%
13.3%
10.1%
7.2%
(32.8%)

10,8701,410(9,460)(87.0%)

170
85
10,955

248
59
1,598

77
(25)
(9,356)45.5%(29.7%)(85.4%)

902
27
11,831

1
12
1,588

(901)
(14)
(10,243)(99.8%)(54.4%)(86.6%)

3,259
8,572
33

489
1,099
14

(2,770)(7,473)(18)(85.0%)(87.2%)(55.7%)Net income attributableto owners of the parent

8,538

1,084

(7,454)(87.3%)

Depreciation andamortization (Property,
plant and equipment andintangible assets)
Amortization of goodwill

1,962

2,132

170

8.7%

280

307

26

9.6%

Administrative expense, other

Enterprise taxes (external
standards taxation)

Operating profit(Non-operating income andExpenses)Non-operating income
Non-operating expenses
Ordinary profit(Extraordinary income & Losses)

Extraordinary income
Extraordinary losses
Income before income
taxes and others
Income taxes
Net income

Net income (loss) attributable tonon-controlling interests-9-(3) Comparative Statement of Income Relating to Consolidated Financial Forecasts(Rounded down to one million yen)
Year
Year ending
ended
Mar. 31, 2024
Previous Previous
Y/Y
Y/Y
Mar. 31,
forecast
forecast
ChangeRatio
Previous Current
2023
ChangeRatio
forecast
forecast
Actual(Net sales)
38,353
Reagents
65,92532,792 (33,133) (50.3%)(5,561) (14.5%)
2,019(4.5%)
Instruments
1,375
1,314
(61)
(705) (34.9%)
9,914
5.5%
CDMO
8,200
8,652
(1,261) (12.7%)
451
3,012
(9.0%)
3.8%
Gene Therapy
2,640
2,740
(272)
100
53,300Total Net Sales
78,14245,500 (32,642) (41.8%)(7,800) (14.6%)(Operating profit and Loss)
53,30078,14245,500 (32,642) (41.8%)(7,800) (14.6%)
Net sales
19,315
Cost of sales
33,377
17,399 (15,977) (47.9%)(1,916)(9.9%)
33,984(37.2%)(17.3%)
Gross profit
44,765
28,100 (16,664)(5,883)25,984
3.6%(3.4%)
SG & A expenses
24,224
25,100
876
(883)
691
(2.2%)(7.7%)
Transportation expenses
653
638
(14)
(53)
74
44.3%
(5.9%)
Advertising expenses
48
70
21
(4)
965
13.8%
Promotion expenses
699
796
96
(169) (17.5%)
9,000
2.7%
(2.1%)
R&D expenses
8,575
8,810
234
(189)
Administrative expenses,
13,79014,881
14,479
689
5.0%
(401)
(2.7%)
other
Enterprise taxes(external
standards
456
372
305
(151) (33.1%)(66) (17.9%)
taxation)
20,5418,000
3,000 (17,541) (85.4%)(5,000) (62.5%)
Operating profit(Non-operating income andExpenses)
386
8.7%
2.1%
Non-operating income
363
394
8
31
186
4.4%
Non-operating expenses
221
194(27) (12.2%)
8
20,6828,200
3,200 (17,482) (84.5%)
Ordinary profit(5,000) (61.0%)(Extraordinary
gains&
Losses)Extraordinary gains
930
11(928) (99.8%)
59
2.1%
Extraordinary losses
38860(327) (84.3%)
1
Income before income
21,2248,140
3,140 (18,083) (85.2%)(5,000) (61.4%)
taxes and others
2,612
Income taxes
5,176
1,100
(4,065) (78.5%)(1,501) (57.5%)
5,528
Net income
16,0472,030 (14,017) (87.3%)(3,497) (63.3%)
Net
income(loss)
attributable
to
non35
28
30
(5) (14.6%)2
8.2%
controlling interests
Net income attributable
16,0125,500
2,000 (14,012) (87.5%)(3,500) (63.6%)
to owners of parent
Depreciation
andamortization(Property,
plant and equipment andintangible assets)
Amortization of goodwill

4,050

4,590

4,552

502

12.4%

(37)

(0.8%)

599

637

635

36

6.0%

(1)

(0.3%)- 10 -