The original disclosure in Japanese was released on October 20, 2020 at 15:00 (GMT+8)

To whom it may concern:

October 21, 2020
CompanyTakara Bio Inc.

Headquarters

Nojihigashi 7-4-38, Kusatsu, Shiga 525-0058, Japan

Representative

Koichi Nakao, President & CEO

Contact

Takuya Kakemi, General Manager of Corporate(First Section of the TSE, code: 4974)

Management Division, Executive Officer
Telephone(+81)77-565-6970

Websitehttps://www.takara-bio.com/Announcement on Revision of Financial Forecast
Kusatsu/Shiga, Japan-October 20, 2020 – Takara Bio Inc. (Takara Bio), today announced the revision of theconsolidated financial forecast disclosed on August 4, 2020, as follows based on the recent progress in its business.
1. Revision to Financial Forecast
Revision to the Consolidated Forecast for the second quarter ending September 30, 2020
(April 1, 2020 – September 30, 2020)
Operating profit

Ordinary profit

Net income
attributable toowners of parent

Million yen

Million yen

Million yen

Million yen

16,870

2,500

2,559

1,248

10.37

Revised forecast (B)17,393

3,824

3,907

2,335

19.39

Amount of Change (B-A)

522

1,324

1,348

1,086－Percentage of Change (%)(Reference) Results for theprevious second quarter
ended September 30, 2019

3.1

53.0

52.7

87.1

－

16,450

3,035

2,961

2,075

17.23

Net sales

Previous forecast (A)Net income
per share
Yen

2. Reason of the Revision
In the previous forecast (announced on 4 August, 2020), we have revised upwardly our forecasts to the extent
possible, mainly for increasing demand for PCR testing-related products due to the new Coronavirus disease
pandemic, and inquiries for contract manufacturing of vaccines.
Thereafter, the demands for PCR testing-related products were even stronger, and net sales were higher thanthe previous forecast. As a result, the cost of sales ratio is expected to improve and the cost of sales is expected
to decrease as a result of changes in the sales mix and improvements in production utilization. Selling, generaland administrative expenses are expected to be lower than the forecast, mainly for administrative expenses.
For the reasons stated above, net sales, operating profit, ordinary profit, and net income attributable to ownersof the parent are each expected to exceed the previous forecasts. Accordingly, the forecasts for the second quarterof the current fiscal year have been revised.

Full-year forecasts will be further examined and announced at the time of the announcement of financial
results for the second quarter on November 10, 2020.

Forward-Looking Statements
Statements contained in these materials with respect to the Company's current plans, forecasts, strategies andbeliefs that are not historical facts are forward-looking statements about the future performance of the Companyand its consolidated subsidiaries. These statements are based on management's assumptions and beliefs in lightof information currently available to it, but are based on a number of assumptions and beliefs derived frominformation that contains significant risks and uncertainties. Actual results may differ materially from these
forecasts due to various factors. Factors that could influence actual results include, but are not limited to,
economic conditions, especially trends in consumer spending, as well as exchange rate fluctuations, changes inlaws and government systems, pressure from competitors' prices and product strategies, declines in selling
power of the Company's existing and new products, disruptions to production, violations of our intellectualproperty rights, rapid advances in technology, and unfavorable verdicts in major litigation.