Takara Bio : Financial Results Presentation (May 16, 2023)

Financial Results for the Fiscal Year

Ended March 31, 2023 and

Medium-Term Management Plan 2026

May 16, 2023

This is an English translation from Japanese presentation material.

Contents

• Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
• Consolidated Financial Forecasts for the Year Ending March 31, 2024
• Review of Medium-Term Management Plan 2023
• Overview of Medium-Term Management Plan 2026

1

Consolidated Financial Results of FY2023

(for the Year Ended March 31, 2023): Sales (1)

		Net	Y/Y	Comparison
		sales	with Feb. 9
	(¥m)		forecast
Reagents	65,925	+13,446	▲349
			+25.6%	▲0.5%
	C O V I D	35,901	+10,262	▲188
			+40.0%	▲0.5%
	General	30,024	+3,183	▲161
	research	+11.9%	▲0.5%

Reagents: Significant growth in sales of COVID reagents, and sales of general research reagents were firm.

currency	COVID	General	Overall
research
Local
basis

Japan

US

China

Europe

Overall

2

¥m: millions of yen

(Note) Explanation of year-on-year changes

Consolidated Financial Results of FY2023

(for the Year Ended March 31, 2023) : Sales (2)

		Net	Y/Y	Comparison
	(¥m)	sales	with Feb. 9
		Forecast
Instruments	1,375	▲142	▲174
▲9.4%	▲11.3%
	CDMO	8,200	▲3,226	▲42
	▲28.2%	▲0.5%
	Regenerative	4,469	▲1,394	▲21
	medicine	▲23.8%	▲0.5%
	Gene Analysis/	3,732	▲1,832	▲21
	Testing & others	▲32.9%	▲0.6%
	Gene	2,640	+365	+8
	Therapy	+16.1%	+0.3%

Instruments: Sales of cell-analysis equipment increased. Sales of PCR equipment decreased.

CDMO: Sales decreased due to contraction of contracts related to COVID vaccines in the previous fiscal year

Gene analysis and testing: Revenues declined due to the contraction of a large-scalegenome analysis project led by the Japanese government in the previous fiscal year

Gene Therapy: Sales of RetroNectin® and other AM* increased

3

*AM: Ancillary Materials

(Note: Explanation of all year-on-year changes)

Consolidated Financial Results

for the Fiscal Year Ended March 2023

	FY2023	Y/Y	Comparison
	Full year	with Feb. 9
(¥m)			forecast
Net Sales	78,142	+10,442	▲
▲	557	Grossprofit
		+15.4%	0.7%
		▲		▲
Gross	44,765		4,445		291
profit	▲	▲	0.6%
			9.0%
Operating	20,541	▲	8,360	+541
profit	▲28.9%	+2.7%
R&D	8,575	+2,466		▲78
expenses	+40.4%	▲0.9%
4

Operating profit (Y/Y)

FY2022 289

Sales	+45
Composition	▲118
Exchange			+29
R&D	▲24
Personnel*	▲8
Other	▲7

FY2023 205

(¥100m)1

150 200 250 300 350

* Excluding R&D personnel expenses

Contents

• Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
• Consolidated Financial Forecasts for the Year Ending March 31, 2024
• Review of Medium-Term Management Plan 2023
• Overview of Medium-Term Management Plan 2026

5

Consolidated Financial Forecasts for FY2024 (for the Year Ending March 31, 2024): Net Sales

	(¥m)	Net sales	Y/Y
	Reagents	38,353	▲27,571
	▲41.8%
	Instruments	2,019	+643
	+46.8%
	CDMO	9,914	+1,713
	+20.9%
	Regenerative	4,646	+178
	medicine	+4.0%
	Gene analysis/	5,173	+1,441
	testing & others	+38.6%
Gene Therapy	3,012	+372
+14.1%
6

Reagents: In addition to expanding reagents for general research, strengthen BtoB customized products

Instruments: Expansion of cell analysis equipment and gene amplification equipment

CDMO: Strengthen One-stop system to suit the development stages, including quality tests, from small-scale

manufacturing to large-scale manufacturing for clinical use, and from analysis for R&D to clinical analysis under reliability assurance

Gene Therapy: Strengthen AM products in addition to RetroNectin®

Consolidated Financial Forecast for FY2024

(for the Year Ending March 31, 2024)

		FY2024
	(¥m)	Full-year
	Net sales	53,300
	Gross profit	33,984
	Operating	8,000
	profit
	R&D	9,000
	expense
7

Y/Y

▲24,842 ▲31.8%

▲10,780 ▲24.1%

▲12,541 ▲61.1%

+424

+4.9%

Gross profit

Operating profit

FY2023/03 205

Sales	▲148
Difference in sales
Composition					+32
CompositionDifference
Foreign exchange						+8
Exchangedifferences
RESEARCH AND		▲4
R&D
DEVELOPMENT
COSTS	▲10
Personnel*exp nses
※
Other	▲3
Other expenses
FY2024				80
FY03/24
										(¥100m)
0	50			100	150	200	11
		250

* Excluding R&D personnel expenses

Contents

• Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
• Consolidated Financial Forecasts for the Year Ending March 31, 2024
• Review of Medium-Term Management Plan 2023
• Overview of Medium-Term Management Plan 2026

8

Medium-Term Management Plan 2023 significantly exceeded the quantitative performance targets

Medium-Term Management Plan 2023

(¥100m)

								Net sales				676				781		700
	345			Actual 460				394			426			500
								MP23 338													300
												289
3
(¥100m)
								Operating income
													205
								R&D expenses
200
										139
																			65
100													64
		62
					45
									55		58	61		63	85
						48
0		38
	Actual	MP23Actual	MP23 Actual	MP23	Actual
		FY2020			FY2021		FY2022		FY2023
	9				MP23: Medium-Term Management Plan 2023

• Earnings exceeded quantitative targets by a large margin, reaching record highs, thanks to rapid and intensive responses to COVID testing demand and vaccine- related projects.

FY2023	Target	Results
Operating	¥6.5b	¥20.5b
income
ROE	6%	15.4%

• Issues such as the dissolution of alliances for clinical-development projects and the unachieved sales of devices and CDMO to meet forecasts remained
• Utilized upside earnings to strengthen R&D investment, capital investment, and human resources investment for future growth
• 1. billion