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. August 8, 2024
Company name: Listing: Securities code: URL: Representative: Inquiries: Takara Bio Inc. Tokyo Stock Exchange 4974 https://www.takara-bio.co.jp Koichi Nakao, President & CEO Takuya Kakemi, Executive Officer, in charge of PR & IR Department Telephone: +81-775-565-6970 Scheduled date to commence dividend payments: Preparation of supplementary material on quarterly financial results:  Yes Holding of quarterly financial results briefing: No (Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the three months ended Jun. 30, 2024 (from Apr. 1, 2024 to Jun. 30, 2024)
Reference: Equity As of Jun. 30, 2024: As of Mar. 31, 2024: ¥111,203 million ¥111,505 million
Notes

3. Consolidated financial forecast for the year ending March 31, 2025 (Apr. 1, 2024 – Mar. 31, 2025) * (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 Changes in accounting policies due to revisions to accounting standards and other regulations: None (i) Changes in accounting policies due to other reasons: None (ii) (iii)  Changes in accounting estimates: None (iv)  Restatement: None (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) (i)
(ii) (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Review of the Japanese-language originals of the attached consolidated quarterly financial statements by * certified public accountants or an audit firm: Yes (voluntary) 120,415,600 shares 120,415,600 shares * 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”) 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 for the Three Months ended June 30, 2024 (4) Explanation of Consolidated 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 Three Months ended June 30, 2024
(1) Overview of Financial Results
The outlook for the global economy during the three months ended June 30, 2024 is uncertain due to the prolonged inflation, a slowdown in the Chinese economy, and Russia's invasion of Ukraine. Under these circumstances, in the Long-Term Management Plan 2026 for the six-year period ending March 31, 2026, and the Medium-Term Management Plan 2026 for the three-year period ending March 31, 2026, we have promoted the development of biotechnology-based biologics development technologies through Reagents / Instruments business and CDMO business and have promoted initiatives aimed at becoming a global platform provider responsible for the infrastructure of the life science industry. For the three months ended June 30, 2024, net sales decreased to ¥8,493 million (down 7.4% year-on-year) due to a decrease in sales of test-related products of new Coronavirus infectious disease, a slump in the life science research market affected by the economic downturn overseas, and other reasons. Cost of sales increased to ¥4,139 million (up 54.3% year-on-year) due to a decrease in sales of test-related product which have relatively high profit margin, and changes in the sales mix, and other reasons. As a result, gross profit decreased to ¥4,353 million (down 32.9% year-on-year). Selling, general and administrative (SG&A) expenses were ¥5,988 million (down 1.3% year-on-year), and operating loss was ¥1,634 million (compared with operating profit of ¥423 million in the same period of the previous fiscal year). As a result of the decrease in operating income, ordinary loss was ¥1,498 million (compared with ordinary income of ¥509 million in the same period of the previous fiscal year) and loss before income taxes was ¥1,507 million (compared with income before income taxes and minority interests of ¥505 million in the same period of the previous fiscal year), resulting in income taxes-deferred of minus ¥686 million. As a result, net loss attributable to owners of parent was ¥1,047 million (compared with net income attributable to owners of parent of ¥319 million in the same period of the previous fiscal year). From the first quarter of the current fiscal year, due to a review of management classification, net sales of products related to mRNA manufacturing (for research use), which were previously included in "Reagent," have been added to "Gene Therapy." As a result, net sales for the first quarter of the previous fiscal year has been reclassified as "Gene Therapy." Since our group is a single segment, the disclosure by segment is omitted.
(2) Overview of Financial Position for the Current Quarter
Total assets at the end of the three months ended June 30, 2024 were ¥121,752 million, an increase of ¥500 million from the end of the previous fiscal year. This was mainly due to increase of ¥2,552 million in cash and deposits, ¥1,001 million in investments and other assets, and ¥997 million in property, plant and equipment, despite a decrease of ¥3,899 million in note and accounts receivable- trade. Total liabilities at the end of the three months ended June 30, 2024 were ¥10,236 million, an increase of ¥768 million from the end of the previous fiscal year. This was mainly due to increases of ¥416 million in provision for bonuses and ¥115 million on accrued income taxes. Total net assets at the end of the three months ended June 30, 2024 were ¥111,516 million, a decrease of ¥268 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥3,094 million in retained earnings, despite an increase of ¥2,775 million in foreign currency translation adjustment due to the yen's depreciation.
(3) Overview of Cash Flows for the Current Quarter
Net cash provided by operating activities amounted to ¥4,534 million, an increase of ¥4,215 million compared with the same period of the previous fiscal year. This was mainly due to cash inflow from a decrease in trade receivable of ¥4,132 million, and an increase in consumption taxes payable of ¥1,478 million, and cash outflow of ¥1,507 million in quarterly loss before income taxes. Net cash used in investing activities amounted to ¥792 million, an increase of ¥27 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 ¥572 million, payment into time deposits of ¥375 million, purchase of other depreciable assets of ¥212 million, and proceeds from withdrawal of time deposits of ¥364 million. Net cash used in financing activities was ¥2,022 million, mainly due to cash dividends paid of ¥1,971 million, a decrease of ¥2,888 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 three months ended June 30, 2024, including the effect of exchange rate change on cash and cash equivalents, increased by ¥2,427 million from the end of the previous fiscal year to ¥35,599 million.
(4) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
Results for the three months of the fiscal year under review were basically in line with the forecasts announced on May 10, 2024. In addition, the current forecast for the second quarter and beyond are generally in line with the forecast for consolidated financial results. For the year ending March 31, 2025, we forecast consolidated net sales of ¥48,900 million, operating profit of ¥5,000 million, ordinary profit of ¥5,200 million, and net income attributable to owners of the parent of ¥3,400 million. For the cumulative second quarter, we forecast a year-on-year increase in sales and profits, with net sales of ¥20,200 million, operating profit of ¥150 million, ordinary profit of ¥250 million, and net income attributable to owners of the parent of ¥100 million. As mentioned above, due to a bias in the progress of net sales, we expected the progress of our operating profit forecast to be approximately 3% for the full year in the first half (operating loss of ¥1,634 million in the first quarter) and 97% in the second half.
(2) Consolidated Quarterly Statements of Profit or Loss and Consolidated Quarterly Statements of Comprehensive Income
(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. (Notes on Segment Information) Since our group is a single segment, the description is omitted.
3. Supplemental Information
(1)Trends in Key Indicators for Business Management
1) Cash Flows
products (for research use), which had been included in "Reagents" until year ended March 31, 2024, to "Gene Therapy." The results for the year ended March 31, 2024 in this table have been reclassified to reflect this change.