Takara Bio : Financial Results Presentation (November 15, 2022)

Financial Results for the Second Quarter Ended September 30, 2022

November 15, 2022

This is an English translation from Japanese presentation material.

Contents

• Consolidated Financial Results for the Second Quarter Ended September 30, 2022
• Consolidated Financial Forecast for the Year Ending March 31, 2023
• Business Progress and Future Measures

1

Consolidated Quarterly Financial Results for FY2023

(for the 2nd Quarter Ended September 30, 2022)

		Actual	Y/Y	Comparison
	(million yen)	with May 12
			forecast
Net sales	32,587	+1,035	+4,842
+3.3%	+17.5%
	[1]	27,565	+2,576	+4,989
	Reagents	+10.3%	+22.1%
	Instruments	694	▲17	+25
	▲2.5%	+3.8%
	CDMO	3,183	▲1,548	▲121
	▲32.7%	▲3.7%
	Gene [2]	1,144	+26	▲50
	Therapy	+2.3%	▲4.2%
	Gross	22,025	▲1,470	+2,338
	profit	▲6.3%	+11.9%
Operating	10,870	▲3,234	+2,228
	profit	▲22.9%	+25.8
	R&D	3,853	+1,193	+122
	+44.9%	+3.3%

(Explanation of Y/Y changes)

• Reagents: Grew in sales of COVID testing-related reagents, while sales of general research reagents remained firm.
• Instruments: Sales of PCR equipment and single-cellanalysis equipment remained the same level as the previous fiscal year.
• CDMO: Lower sales related to COVID vaccines and large-scale genome analysis projects
• Gene therapy: Sales of GMP grade reagents increased.
• Operating profit: Gross profit declined due to product mix and other factors. Operating profit decreased due to aggressive investment in R&D, etc.

2	[1] Including in vitro diagnostics
[2] Sales of GMP grade reagents, were reclassified from "Reagents" to "Gene Therapy" from the fiscal year under review.

The 2nd Quarter; Operating Profit

Y/Y

Previous forecast

disclosed on May 12, 2022

FY2021

FY2021

FY2022

141

Previous

86

Forecast

22/ 3期

前期回初予想

売

Sales

売

Sales

▲5

+25

上 Sales

上 Sales

売

売上差

売

売上差

profit上

profit

総Composition

総Composition

総

▲21

上

▲9

総Composition

Composition

利 構成差

利 構成差

益

益

利

利

Gross益

Gross

Exchange

+12

益

+7

Exchange

為替差

為替差

R&D

▲11

R&D

▲1

研究開発費

研究開発費

Personnel*

▲4

Personnel*

▲2

⼈件費※

⼈件費※

▲1

Other

Other

+3

その他経費

その他経費

FY2023

108

FY2023

108

23/ 期

23/03期

100

120

140

億円)

80

100 (100 million yen)

(100 million yen)

3 * Excluding R&D personnel expenses

The 2nd Quarter; Reagents

			Actual net sales		Sales performance by region
(100 million yen)
300
							249
				275	FY2022
	COVID
						22/03期
				249	138	為替		+15
		General research
			Exchange
				120		⽇本		+27
200						Japan
					⽶国						+8
						U.S.
						China			▲6
	114	129		137	中国
		欧州
100	40	129	Europe		▲19
					韓国		0
			89			Korea
					India印度		0
						FY2023		275
0						23/03期
20/03FY2020期 21/03FY2021期 22/FY20223期 23/FY2023期	240	300
				(100 million yen)
4		Graphs are displayed reflecting the reclassification of sales of GMP grade reagents, etc.

The 2nd Quarter; CDMO

Actual net sales

(100 million yen)
50				47
	Others			3
	Gene analysis & testing
40	Regenerative medicine			15
356			313
30		11
	222	28	8
20					20
	8	17

10 11

0

20/03FY2020期 21/03FY2021期 22/03FY2022期 23/03FY2023期

5

Regenerative medicine

• Sales decreased due to a decline in COVID vaccine- related contracts, despite robust sales of vector production, cell processing, and quality testing

Gene analysis and testing

• Decreased in sales due to the impact of the completion of large-scale genome analysis projects such as human whole genome analysis.

Contents

• Consolidated Financial Results for the Second Quarter Ended September 30, 2022
• Consolidated Financial Forecast for the Year Ending March 31, 2023
• Business Progress and Future Measures

6

Consolidated Financial Forecast for FY2023

(for the Year Ending March 31, 2023)

			FY2023	Y/Y	Comparison
			Full-year	with May 12
		(millions yen)		forecast
	Net sales	77,800	+10,100	+22,500
	+14.9%	+40.7%
		[1]	65,106	+12,626	+24,095
		Reagents	+24.1%	+58.8%
		Instruments	1,716	+197	+244
		+13.0%	+16.6%
		CDMO	8,356	▲3,070	▲1,855
		▲26.9%	▲18.2%
		Gene [2]	2,621	+346	+15
		Therapy	+15.2%	+0.6%
		Gross	43,731	▲5,480	+5,875
		profit	▲11.1%	+15.5%
	Operating	19,000	▲9,902	+4,000
		profit	▲34.3%	+26.7
		R&D	8,713	+2,604	+893
		+42.6%	+11.4%

(Explanation of Y/Y changes)

• Reagents: Significant growth in COVID testing-related reagents, steady growth in general research reagents
• Instruments: PCR equipment sales down slightly, single-cell analysis equipment sales up
• CDMO: COVID vaccine-related contract and large-scale genome analysis project-related contract sales decreased
• Gene Therapy: Sales of GMP grade reagents increased
• Operating profit: Gross profit decreased due to product mix and other factors. Operating income decreased due to aggressive investment in R&D, etc.

7	[1] Including in vitro diagnostics
[2] Sales of GMP grade reagents, were reclassified from "Reagents" to "Gene Therapy" from the fiscal year under review.

Full-year Forecast; Operating Profit

	Y/Y	Previous forecast
	disclosed on May 12, 2022

Gross profit

FY2022

289

Previous

150

forecast

期初予想

22/03期

5⽉12⽇予想

Sales

+42

Sales

+149

売上差

profit上

売上差

構成差

構成差

売

Composition

▲121

総Composition

▲110

利

Gross

Exchange

+24

益

+20

Exchange

為替差

為替差

R&D

▲26

R&D

▲8

研究開発費

研究開発費

▲11

▲9

Personnel*⼈件費※

Personnel*⼈件費※

Other

▲7

Other

▲1

その他経費

その他経費

FY2023

FY2023

190

190

23/03期

23/03期

forecast

forecast

予想

予想

100

200

300

(億円)

100

200

300 (億円)

(100 million yen)

(100 million yen)

8 * Excluding R&D personnel expenses

Full-year Forecast;

Reagents and Instruments

	Actual Net Sales and Forecast		Reagents
(100 million yen)		MMP2023	651		COVID: In addition to PCR diagnostic reagents,
				sales are expected to increase significantly due
600			COVID		524		342		to a significant contribution from antigen
	General research				testing kits.
400	256				General research: Overall sales are forecast to
			339
				283			increase Y/Y, despite regional differences and
	236		225
		130		308		the impact of foreign exchange rates. Forecast
200	236			209	268				to achieve the final-year targets of the
								medium-term management plan FY2023
0									(MMP2023).
実績		中計	実績	実績	中計 予想		Instruments
	Actual		MMP2023 Actual	Actual	MMP2023	Forecast
(100 million yen)			22
				Sales of PCR equipment was consistent with
20				17	15		17	
	12					the preceding period due to COVID testing-
		11						related demand and other factors. Expected to
10								increase overall sales due to growth in single-
									cell analysis-related equipment.
								 Targets for the final year of the MMP2023 are
0	Actual		MMP2023 Actual	Actual	MMP2023中計	Forecast		not expected to be achieved.
	実績		中計	実績	実績	予想
	20/03期	21/03期	22/ 3	23/	期
	FY2020		FY2021	FY2022期	FY2023
	9	Graphs are displayed reflecting the reclassification of sales of GMP grade reagents, etc.