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.

Aug 4, 2022

Consolidated Financial Results
for the Three Months Ended June 30, 2022
(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:
Aug. 10, 2022
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended Jun. 30, 2022 (from Apr. 1, 2022 to Jun. 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Jun. 30, 2022

14,102

(7.7)

4,537

(46.6)

4,593(46.5)

3,907(35.1)

Jun. 30, 2021

15,272

120.1

8,504

-

8,579

-

6,025

-

Note: Comprehensive income

For the three months ended Jun. 30, 2022:
For the three months ended Jun. 30, 2021:

Basic earnings
per share
Three months ended¥6,334 million¥8,210 million(22.8%)(-%)

Diluted earnings
per share
Yen

YenJun. 30, 2022

32.45

Jun. 30, 2021

50.04

-

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

yenJun. 30, 2022

111,488

98,42588.1

815.46

Mar. 31, 2022

115,71296,06482.9

796.18Reference:

EquityAs of Jun. 30, 2022:
As of Mar. 31, 2022:¥98,194 million¥95,873 million

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

-

0.00

-

33.00

33.00

0.00

-

33.00

33.00

Fiscal year ended
Mar. 31, 2022
Fiscal year ending
Mar. 31, 2023

Fiscal year-end

Total

-

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

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

3. Forecast for the year ending March 31, 2023 (Apr. 1, 2022 – Mar. 31, 2023)(Percentages indicate year-on-year changes for the full year and year-on-year changes for the quarter.)

Net sales

Note:

*

Profit attributable toowners of parent

Ordinary profit%

Millions ofyen%

27,744 (12.1)

8,641 (38.7)

8,726

55,300 (18.3)

15,000 (48.1)

15,100Millions of yen

Six months ending
Sep. 30, 2022
Year ending Mar.
31, 2023

Operating profit% Millions of yen

Millions ofyen

Net income pershare (in yen)%

yen

(38.7)

6,354 (36.5)

52.77(46.9)

10,600 (46.6)

88.03

Revisions to the financial forecast since the most recent announced: None

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 Jun. 30, 2022

120,415,600 shares

As of Mar. 31, 2022

120,415,600 shares(ii) Number of treasury shares at the end of the period
As of Jun. 30, 2022-

shares

As of Mar. 31, 2022-

shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended Jun. 30, 2022

120,415,600 shares

Three months ended Jun. 30, 2021

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 (4) Future Outlook on page 2 of the attached document.

Contents of the attached document
1. Overview of Financial Results for the three months ended Jun. 30, 2022……………………………………………………
(1) Overview of Financial Results……………………………………………………….…………..………….………….....
(2) Overview of Financial Position………………………………………………...…………………………...…….............
(3) Overview of Cash Flows…………………………………………………………….…………………………….……...
(4) Future Outlook…………………………………………………………….........................................................................
2. Consolidated Quarterly Financial Statements and Primary Notes............................................................................................
(1) Consolidated Quarterly Balance Sheets……………………………………………………………..................................
(2) Consolidated Quarterly Statements of Profit or Loss and Consolidated Quarterly Statements of Comprehensive Income.........
(Consolidated Quarterly Statements of Profit or Loss)...................................................................................................
(Consolidated Quarterly Statements of Comprehensive Income)..................................................................................
(3) Consolidated Quarterly Statements of Cash Flows ……………………………………………………………................
(4) Notes to Consolidated Quarterly Financial Statements………………………………………………………...................
(Notes on Premise of Going Concern) ………………………………………………………………………………….
(Notes in case of Changes in Marked Amount of Shareholders’ Equity)………………………………………………..
(Additional Information)………………………………………………..…………..…………..…………..…………...
3. Supplementary Information…………………………………………………………………………………………………..
(1) Trends in Key Indicators for Business Management……………………………………………………………………..
(2) Comparative Consolidated Statement of Income ………………………………………………………………………..

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1. Overview of Financial Results for the three months ended June 30, 2022
(1) Overview of Financial Results
The outlook for the global economy in the fiscal year under review is uncertain due to the impact of the new Coronavirus disease(COVID-19), the prolonged trade friction between the U.S. and China, and Russia’s invasion of Ukraine.
Under these circumstances, Takara Bio Group is promoting initiatives to advance the development of fundamental biologics
development technologies and become a biologics development company that continuously creates new modalities through theReagents and Instruments and CDMO business under the six-year Long-Term Management Plan FY2026, which ends in fiscal 2026,
and the three-year Medium-Term Management Plan FY2023, which ends in fiscal 2023 1.In addition, the Group worked aggressively
to ensure a stable supply of testing-related products for the new Corona Virus and to establish a manufacturing system for regenerative
medicine and other products.
In the fiscal year under review, although sales of Gene Therapy increased year on year, sales of Reagents, Instruments and CDMO
decreased year on year due to a decrease in demand related to the new Coronavirus. As a result, net sales decreased to ¥14,102 million(down 7.7% year on year). Cost of sales increased to ¥3,977 million (up 86.4% year on year) due to changes in the sales mix, Grossprofit decreased to 10,124 million (down 22.9% year on year). Selling, general and administrative (SG&A) expenses were ¥5,586
million (up 20.6% year on year), mainly due to an increase in personnel expenses and R&D expenses. Operating profit was¥4,537million (down 46.6% year on year). As a result of the decrease in operating profit, ordinary profit decreased to ¥4,593 million(down 46.5% year on year), income before income taxes and others decreased to ¥5,479 million (down 36.0% year on year), and net
income attributable to owners of the parent decreased to ¥3,907 million (down 35.1% year on year).
From the first quarter of the fiscal year under review, due to a review of management classifications, sales of reagents and otherproducts of GMP grade (for the manufacture of regenerative medicine products), which were previously included in Reagents, areincluded in Gene Therapy. As a result, net sales for the first quarter of the previous fiscal year have been reclassified based on the
new classification. In the first quarter of the previous fiscal year, ¥352 million, which was included in "reagents," has been reclassified
as Gene Therapy.
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 first quarter under review were ¥111,488 million, it was a decrease of ¥4,224 million from the endof the previous fiscal year. This was mainly due to an increase of ¥690 million in merchandise and finished goods and a decreaseof ¥5,111 million in trade receivables.
Total liabilities at the end of the first quarter under review were ¥13,062 million, it was a decrease of ¥6,585 million from theend of the previous fiscal year. This was mainly due to a decrease of ¥4,682 million in accrued income taxes and ¥1,682 million
in other current liabilities.
Total net assets at the end of the first quarter under review were ¥98,425 million, an increase of ¥ 2,361 million from the end of
the previous fiscal year. This was mainly due to an increases of ¥2,375 million in foreign currency translation adjustment due tothe yen’s depreciation.
(3) Overview of Cash FlowsNet cash provided by operating activities amounted to ¥3,766 million, a decrease of ¥1,838 million from the previous fiscal year.
This was mainly due to balance between cash inflow from profit before income taxes and others of ¥5,479 million, decrease intrade receivables-trade of ¥5,375 million and cash outflow from income taxes paid of ¥5,164 million, decrease in other current
liabilities of ¥1,554 million.
Net cash used in investing activities was minus ¥294 million, an increase of ¥2,697 million from the previous fiscal year. Thiswas mainly due to proceeds from withdrawal of time deposits of ¥496 million and purchase of property, plant and equipment andintangible assets of ¥970 million.
Net cash used in financing activities amounted to ¥3,854 million, an increase of ¥1,973 million from the previous fiscal year,
mainly due to cash dividends paid of ¥3,821 million.
As a result of the above, the balance of cash and cash equivalents at the end of the first quarter under review, including the effectof exchange rate changes on cash and cash equivalents, increased by ¥309 million from the end of the previous fiscal year to¥22,469 million(4) Future Outlook
Consolidated results from the three months ended Jun 30, 2022 were recorded virtually as planed against all such net sales andeach earning item (operating profit, ordinary profit and net income attributable to owner of the parent). Accordingly, theCompany is not revising the consolidated forecast announced May 12, 2022 at present.
1

FY2026 and FY2023 refer to the fiscal year ending March 31, 2026 and 2023, respectively.

-2-2. Consolidated Quarterly Financial Statements and Primary Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
As of Mar. 31, 2022

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 Jun. 30, 2022

23,633
17,845
18,966
1,361
3,738
2,637
(40)
68,141

23,69912,733
19,656
1,572
3,734
2,636
(32)
64,00023,553(5,937)
17,615
7,626(4,147)
3,479
9,530(5,516)
4,014
8,413
1,519
1,642
(287)
1,355
36,39524,447(6,347)18,0997,836(4,447)
3,388
9,703(5,773)
3,930
8,412
1,513
1,694
(323)
1,371
36,716

6,309
2,850
9,159

6,575
2,801
9,376

2,015
2,015
47,571
115,712

1,393
1,393
47,487
111,488

(Millions of yen)
As of Mar. 31, 2022
Liabilities
Current liabilities
Notes and accounts payable-trade
Accrued income taxes
Provision
Other
Total current liabilities
Non-current liabilities
Retirement benefit liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Shareholders 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 Jun. 30, 2022

1,959
5,498
923
8,999
17,380

1,403
815
1,207
7,370
10,796

788
1,478
2,266
19,647

779
1,485
2,265
13,062

14,96532,89345,00992,868

14,96532,89344,94392,802

3,208

5,584

(204)

(193)

3,004

5,391

191
96,064
115,712231
98,425
111,488(2) Consolidated Quarterly Statements of Profit or Loss and Consolidated Statements of Comprehensive Income(Consolidated Statements of Profit or Loss)

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 loss
Rent expenses on real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary gains
Gain on sale of fixed assets
Insurance received
National subsidies
Total extraordinary profit
Extraordinary losses
Loss of sales on non-current assets
Asset shrinkage losses
OthersTotal 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(Millions of yen)Three months ended
Jun. 30, 2021
15,272
2,133
13,138Three months ended
Jun. 30, 2022
14,102
3,977
10,124

1,211
57
1,294
191
1,878
4,633
8,504

1,363
66
1,859
265
2,032
5,586
4,537

30
26
32
5
94

30
35
12
78

6
12
1
19
8,579

5
2
13
1
23
4,593

0
49
49

250
652
902

17
49
67
8,561
2,462
55
2,517
6,044
18
6,025

5
10
16
5,479
875
667
1,542
3,936
28
3,907

-5-

(Consolidated Quarterly Statements of Comprehensive Income)(Millions of yen)Three months ended
Jun. 30, 2021
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-

Three months ended
Jun. 30, 2022

6,044

3,936

2,154
11
2,166
8,210

2,387
10
2,398
6,334

8,183
27

6,294
39

(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)Three months ended
Jun. 30, 2021

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 other provision
Increase (decrease) in retirement benefit liabilities
Interest income
Interest expenses
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 other current liabilities
Other
SubtotalInterest and dividend income received
Income expenses paid
Income taxes paid
Subsidies received
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
Subsidies received
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-

Three months ended
Jun. 30, 2022

8,561
808
23
120

5,479
979
19
132

(4)

(18)

221
(11)
(30)
6
17
(9)
(379)

251
(10)
(30)
5
(244)
5,375
(471)

(388)

(712)

(948)
44
8,031
13
(6)
(3,105)671
5,604(1,554)
(288)
8,912
23
(5)
(5,164)
3,766

(36)
1,357

(163)
496

(2,241)

(970)

0

393

(25)
3,349
(0)
2,403

(60)
9
(294)

(1,846)(34)(1,881)(3,821)(33)(3,854)

530

692

6,656
23,30829,965309
22,16022,469(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.
(Additional Information)(Accounting Estimates for the Impact of the New Corona Virus Infectious Disease)
No material changes have been made to the assumptions used in the previous fiscal year, including the future
spread and timing of convergence of the new Corona Virus infectious disease.
3. Supplemental Information(1)Trends in Key Indicators for Business Management
1) Cash Flows
Three months ended
Jun. 30, 2022

(Millions of yen)
Year ended
Mar. 31, 2022

5,604
2,403
(1,881)

3,766
(294)
(3,854)

6,985(7,071)(2,070)Three months ended
Jun. 30, 2021

Three months ended
Jun. 30, 2022

(Millions of yen)
Year ended
Mar. 31, 2022

Three months ended
Jun. 30, 2021

(Apr. 1, 2021 – Jun. 30, 2021)

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities(Apr. 1, 2022 – Jun. 30, 2022) (Apr. 1, 2021 – Mar. 31, 2022)

2) Sales Breakdown by Region

Japan
United States
China
Asia excluding Japan and China
EuropeOthers
Total(Apr. 1, 2021 – Jun. 30, 2021)

6,954
2,247
3,094
1,748
1,170
56
15,272-8-(Apr. 1, 2022 – Jun. 30, 2022)

5,365
3,183
2,828
1,143
1,518
63
14,102(Apr.1, 2021 – Mar. 31, 2022)

34,076
10,186
11,908
6,614
4,668
244
67,699(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
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 gains
Extraordinary losses
Profit before income
taxes and others
Income taxes
Net income

Net income (loss) attributable tonon-controlling interests

Net income attributableto owners of the parent
Depreciation andamortization (Property,
plant and equipment andintangible assets)
Amortization of goodwill

Three months ended
Jun. 30, 2021

(Rounded down to one million yen)Three months ended
Y/Y
Y/Y
Jun. 30, 2022
changeratio

12,520
390
1,955
406
15,272

12,043
267
1,291
499
14,102

(477)
(122)
(663)
92
(1,169)(3.8%)(31.3%)(33.9%)
22.9%(7.7%)

15,272
2,133
13,138
4,633
212
13
180
1,294
2,792

14,102
3,977
10,124
5,586
150
10
131
1,859
3,345

(1,169)1,843(3,013)
952
(62)
(2)
(48)
564
552

(7.7%)
86.4%(22.9%)
20.6%(29.4%)(20.5%)(27.0%)
43.6%
19.8%

139

89

(50)

(35.9%)

8,504

4,537

(3,966)(46.6%)

94
19
8,579

78
23
4,593

(16)
3
(3,986)(17.1%)
18.1%(46.5%)

49
67

902
16

852
(51)

1709.6%(75.6%)

8,561

5,479

(3,082)(36.0%)

2,517
6,044

1,542
3,936

(975)
(2,107)(38.7%)(34.9%)

18

28

10

56.3%

6,025

3,907

(2,118)(35.1%)

808

979

171

21.2%

120
132
11
9.7%
※ The sales of GMP-grade reagents included in "Reagents" until the year ended of March 31, 2022 havebeen included in "Gene Therapy " since the year ending March 31, 2023. The three months ended Jun. 30,
2021 in this table have been reclassified to reflect these changes.

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