NEWS RELEASE<http://www.takara-bio.co.jp>

Announcement on revision of financial forecast
Kusatsu/Shiga, Japan- August 4, 2020 – Takara Bio Inc. (Takara Bio), today announced the revision of thefinancial forecast disclosed on May 14, 2020, considering the recent progress in its business as described below.
1.

Revision of the financial forecast(1) Second quarter ending September 30, 2020, FY2021
Revision to consolidated financial forecast(April 1, 2020 – September 30, 2020)
Net sales

Operating profit

Ordinary profit

Net income
attributable toowners of parent

Net income
per shareMillion yen

Million yen

Million yen

Million yen

Yen

Previous forecast (A)14,365619

69300.00

Revised forecast (B)16,870

2,500

2,559

1,248

10.37

Amount of Change (B-A)

2,504

1,880

1,865

1,248

–

Percentage of change (%)(Reference) Results forthe previous second
quarter ended September
30, 2019

17.4

303.9

269.0––

16,450

3,035

2,961

2,075

17.23

(Note) The rate of change in net income attributable to owners of parent is shown as "–" because it is more than 1,000%.

(2) Year ending March 31, 2020, FY2021
Revision to consolidated financial forecast(April 1, 2020 – March 31, 2021)
Net sales

Operating profit

Ordinary profit

Net income
attributable toowners of parent

Net income
per share

Million yen

Million yen

Million yen

Million yen

Yen

Previous forecast (A)33,800

4,500

4,600

2,600

21.59

Revised forecast (B)39,600

6,500

6,600

4,000

33.22

Amount of Change (B-A)

5,800

2,000

2,000

1,400

–

Percentage of change (%)(Reference) Results forthe previous year ended
March 31, 2020

17.2

44.4

43.5

53.8

–

34,565

6,274

6,347

3,819

31.72

12.

Reason of the revision

The previous forecast disclosed on May 14, 2020, included only downside risks associated with theCOVID-19 pandemic. However, the current forecast incorporates upside factors that can be expected
to contribute to earnings, such as PCR-related products for the new coronavirus testing and contract
manufacturing of DNA vaccines, etc., to the extent anticipated. On the other hand, the forecast
incorporates the impact of termination of the exclusive agreement for developing, manufacturing andcommercializing oncolytic virus C-REV in China, which was announced today (August 4, 2020).

As a result, net sales, operating profit, ordinary profit, and net income attributable to owners of theparent are expected to exceed the previous forecasts, and therefore the consolidated earnings forecastsof FY2021 for the second quarter and the full year have been revised.

For more information:Corporate Department, Takara Bio Inc.
E-mail: bio-ir@takara-bio.co.jp

This article is translated from press release in Japanese for your convenience.

Forward-Looking Statements
Statements in this news release, other than those based on historical fact, concerning the current plans,
prospects, strategies and expectations of the Company and its Group represent forecasts of futureresults. While such statements are based on the conclusions of management according to information
available at the time of writing, they reflect many assumptions and opinions derived from information that
includes major risks and uncertainties. Actual results may vary significantly from these forecasts due tovarious factors. Factors that could influence actual results include, but are not limited to, economicconditions, especially trends in consumer spending, as well as exchange rate fluctuations, changes inlaws and government systems, pressure from competitors’ prices and product strategies, decline inselling power of the Company’s existing and new products, disruptions to production, violations of ourintellectual property rights, rapid advances in technology and unfavorable verdicts in major litigation.

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