Consolidated Finacial Results for the Nine Months Ended December 31, 2025

February 13, 2026

Company name: Takara Bio Inc.

Listing: Tokyo Stock Exchange Securities code: 4974

URL: https://www.takara-bio.co.jp

Representative: Tsuyoshi Miyamura, President & CEO

Inquiries: Noritaka Nishiwaki, Executive Officer, in charge of PR & IR Department

Telephone: +81-77-565-6970

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes Holding of financial results briefing: No

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the Nine months ended Dec. 31, 2025 (from Apr. 1, 2025 to Dec. 31, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Dec. 31, 2025	28,392	(3.0)	(4,855)	-	(5,092)	-	(9,619)	-
      Dec. 31, 2024	29,282	(1.5)	(1,473)	-	(1,255)	-	(1,378)	-

      Note: Comprehensive income	For the nine months ended Dec. 31, 2025:	¥(12,405) million	- %
      	For the nine months ended Dec. 31, 2024:	¥(733) million	- %

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      Dec. 31, 2025	(79.89)	-
      Dec. 31, 2024	(11.45)	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
   As of	Millions of yen	Millions of yen	%	yen
   Dec. 31, 2025	130,478	101,327	77.4	839.16
   Mar. 31, 2025	125,334	115,849	92.2	959.19

   Reference: Equity

   As of Dec. 31, 2025: ¥101,047 million

   As of Mar. 31, 2025: ¥115,500 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended Mar. 31, 2025	-	0.00	-	17.00	17.00
   Fiscal year ending Mar. 31, 2026	-	0.00	-
   Fiscal year ending Mar. 31, 2026 (Forecast)				0.00	0.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial forecast for the year ending March 31, 2026 (Apr. 1, 2025 - Mar. 31, 2026)

(Percentages indicate year-on-year changes for the full year and year-on-year changes for the quarter.)

Note: Revisions to the financial forecast since the most recent announced: None

1. Significant changes in the scope of consolidation during the period: Yes Newly included: Curio Biosciences, Inc.

   Excluded: None

   (Note) For details, please refer to "(4) Notes to Quarterly Consolidated Financial Statements (Changes in the Scope of Consolidation or Scope of Equity Method Application)" of "2. Quarterly Consolidated Financial Statements and Primary Notes" on page 9 of the attached document.

2. Adoption of accounting treatment specific to the preparation of consolidated financial statements: None

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of Dec. 31, 2025	120,415,600 shares
      As of Mar. 31, 2025	120,415,600 shares

   2. Number of treasury shares at the end of the period

      As of Dec. 31, 2025	133 shares
      As of Mar. 31, 2025	113 shares

   3. 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 financial statements by certified public accountants or an audit firm: Yes (voluntary)

• 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 Nine Months ended December 31, 2025 (4) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements" on page 3 of the attached document.

Contents of the attached document

- 1 -

1. Overview of Financial Results for the Nine Months ended December. 31, 2025
   1. Overview of Financial Results

      The outlook for the global economy during the Nine months ended December 31, 2025 is uncertain due to factors such as prolonged inflation in the United States and Europe, economic recession in China, and heightened geopolitical risks caused by regional conflicts and other factors, and the ongoing blocking of the global economy. In the life science industry as well, the research budget has been reduced due to the impact of high prices and high interest rates. In the United States, the government policy has substantially reduced research grants, and the activity of research and development in the industry and academia is declining. In China, competition with rival companies is intensifying. Consequently, uncertainty about the future outlook is increasing.

      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 Nine months ended December 31, 2025, net sales decreased to ¥28,392 million (down 3.0% year-on-year) as sales of reagents, instruments, and gene therapy declined, despite an increase in CDMO sales. Cost of sales increased to ¥14,252 million (up 10.4% year-on-year) due to changes in the sales mix, and other reasons. As a result, gross profit decreased to ¥14,140 million (down 13.6% year-on-year). Selling, general and administrative (SG&A) expenses were ¥18,995 million (up 6.5% year-on-year) due to the acquisition of Curio Bioscience, Inc. ("Curio") and the recording of goodwill amortization, and operating loss was ¥4,855 million (compared with an operating loss of ¥1,473 million in the same period of the previous fiscal year).

      Due to the recording of the operating loss, the ordinary loss amounted to ¥5,092 million (compared with an ordinary loss of ¥1,255 million in the same period of the previous year).

      The net loss before income taxes was ¥8,977 million (compared with a loss before income taxes of ¥1,384 million in the same period of the previous year), primarily due to the recording of an impairment loss of ¥3,870 million on unused manufacturing facilities for contract services. The income taxes-deferred amounted to ¥401 million due to the reversal of deferred tax assets, among other factors. Consequently, the net loss attributable to owners of the parent was ¥9,619 million (compared with net loss attributable to owners of parent of ¥1,378 million in the same period of the previous fiscal year).

   2. Overview of Financial Position

      Total assets at the end of the nine months ended December 31, 2025 were ¥130,478 million, an increase of ¥5,143 million from the end of the previous fiscal year. This was mainly due to increase of ¥10,569 million in technology-based intangible assets and ¥7,604 million in construction in progress, despite decrease of ¥9,717 million in cash and deposits, ¥5,881 million in notes and accounts receivable-trade. The increase in technology-based intangible assets resulted from the acquisition of Curio, while the increase in construction in progress was due to payments for manufacturing facility construction work.

      Total liabilities at the end of the nine months ended December 31, 2025 were ¥29,150 million, an increase of

      ¥19,665 million from the end of the previous fiscal year. This was mainly due to an increase of ¥10,000 million in long-term borrowings and ¥8,973 million in other non-current liabilities. The increase in other non-current liabilities was mainly due to the recognition of contingent consideration from the acquisition of Curio.

      Total net assets at the end of the nine months ended December 31, 2025 were ¥101,327 million, a decrease of

      ¥14,522 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥2,757 million in foreign currency translation adjustment by the appreciation of the yen, and ¥11,666 million in retained earnings.

   3. Overview of Cash Flows

      Net cash provided by operating activities amounted to ¥3,265 million, a decrease of ¥1,617 million compared with the same period of the previous fiscal year. This was mainly due to cash inflow from ¥5,747 million in decrease of notes and accounts receivable-trade, ¥3,870 million in impairment loss and depreciation and amortization of ¥3,096 million, and cash outflow of ¥8,977 million in a loss before income taxes.

      Net cash used in investing activities amounted to ¥18,708 million, an increase of ¥9,030 million compared with the same period of the previous fiscal year. This was mainly due to payment into purchases of property, plant and equipment and intangible assets of ¥12,332 million, and the purchase of shares of subsidiaries resulting in a change in the scope of consolidation of ¥ 6,416 million.

      Cash flows from financing activities resulted in a net inflow of ¥6,192 million (compared with a net outflow of

      ¥2,207 million in the same period of the previous year), mainly due to proceeds from long-term borrowings of

      ¥9,951 million, dividend payments of ¥2,049 million and payments of ¥1,480 million for the settlement of contingent consideration.

      As a result of the above, the balance of cash and cash equivalents at the end of the nine months ended December 31, 2025, including the effect of exchange rate change on cash and cash equivalents, decreased by ¥9,609 million from the end of the previous fiscal year to ¥17,427 million.

   4. Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements

      There are no changes to the consolidated financial forecasts for the full fiscal year from those announced on November 11, 2025. Actual results may differ from these forecasts due to various future factors. Should any revisions to the financial forecasts become necessary, such information will be disclosed promptly.

2. Quarterly Consolidated Financial Statements and Primary Notes
   1. Quarterly Consolidated Balance Sheets

      	(Mi	llions of yen)
      As of Mar. 31	, 2025 As of Dec.	31, 2025
      Assets
      Current asset
      Cash and deposits	29,549	19,832
      Notes and accounts receivable-trade	14,095	8,213
      Merchandise and finished goods	6,794	7,503
      Work in process	1,070	1,467
      Raw materials and supplies	4,575	3,897
      Other	1,672	1,933
      Allowance for doubtful accounts	(77)	(88)
      Total current assets	57,679	42,760
      Non-current assets
      Property, plant and equipment
      Buildings and structures	30,194	29,948
      Accumulated depreciation	(9,771)	(10,456)
      Buildings and structures, net	20,422	19,492
      Machinery, equipment and vehicles	9,075	8,946
      Accumulated depreciation	(6,051)	(6,162)
      Machinery, equipment and vehicles, net	3,024	2,784
      Tools, furniture and fixtures	12,129	11,978
      Accumulated depreciation	(8,550)	(8,933)
      Tools, furniture and fixtures, net	3,578	3,045
      Land	9,250	9,033
      Construction in progress	19,450	27,054
      Other	2,203	2,214
      Accumulated depreciation	(975)	(1,082)
      Others, net	1,227	1,132
      Total Property, plant and equipment	56,954	62,541
      Intangible assets
      Goodwill	6,516	12,056
      Technology-based intangible assets	112	10,682
      Other	1,342	1,265
      Total intangible assets	7,971	24,004
      Investments and other assets
      Investments and other assets	2,730	1,171
      Total investments and other assets	2,730	1,171
      Total non-current assets	67,655	87,718
      Total assets	125,334	130,478

      		(Millions of yen)
      As of Mar. 31, 2025		As of Dec. 31, 2025
      Liabilities
      Current liabilities
      Notes and accounts payable-trade	1,652	1,730
      Accrued income taxes	213	106
      Provision for bonuses	1,003	485
      Other	4,261	5,489
      Total current liabilities	7,131	7,811
      Non-current liabilities
      Long-term borrowings	-	10,000
      Retirement benefit liabilities	989	1,002
      Other	1,363	10,336
      Total non-current liabilities	2,353	21,339
      Total liabilities	9,485	29,150
      Net assets
      Shareholders' equity
      Share capital	14,965	14,965
      Capital surplus	32,893	32,893
      Retained earnings	52,465	40,799
      Treasury shares	(0)	(0)
      Total shareholders' equity	100,324	88,658
      Accumulated other comprehensive income
      Foreign currency translation adjustment	15,331	12,573
      Cumulative remeasurements of retirement benefit	(155)	(184)
      Total accumulated other comprehensive income	15,175	12,389
      Non-controlling interests	348	279
      Total net assets	115,849	101,327
      Total liabilities and net assets	125,334	130,478

   2. Quarterly Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income (Quarterly Consolidated Statements of Profit or Loss)

      (Millions of yen)
      Nine months Dec. 31,	ended Nine months 2024 Dec. 31,	ended 2025
      Net sales	29,282	28,392
      Cost of sales	12,912	14,252
      Gross profit	16,369	14,140
      SG&A expenses
      Employees' salaries and bonuses	5,435	5,644
      Retirement benefit expenses	268	252
      R&D expenses	5,118	5,090
      Provision of allowance	400	245
      Other	6,619	7,763
      Total SG&A expenses	17,843	18,995
      Operating profit (loss)	(1,473)	(4,855)
      Non-operating income
      Interest income	220	133
      Foreign exchange gains	-	27
      Rent income from real estate	123	118
      Other	76	30
      Total non-operating income	420	310
      Non-operating expense
      Interest expenses	15	420
      Foreign exchange losses	84	-
      Rent expenses on real estate	60	70
      Other	41	56
      Total non-operating expenses	202	547
      Ordinary profit (loss)	(1,255)	(5,092)
      Extraordinary gains
      Gain on sale of fixed assets	2	30
      Gain on reversal of asset retirement obligations	-	53
      Other	-	0
      Total extraordinary profit	2	83
      Extraordinary losses
      Loss on sale and retirement of non-current assets	21	72
      Impairment loss	108	3,870
      Other	1	25
      Total extraordinary losses	131	3,968
      Income (loss) before income taxes	(1,384)	(8,977)
      Income taxes-current	763	206
      Income taxes-deferred	(800)	401
      Total income taxes	(37)	608
      Net income (loss)	(1,347)	(9,586)
      Net income attributable to non-controlling interest	31	32
      Net income (loss) attributable to owners of the parent	(1,378)	(9,619)

      (Quarterly Consolidated Statements of Comprehensive Income)

      (Millions of yen)
      Nine months Dec. 31,	ended Nine months 2024 Dec. 31,	ended 2025
      Net income (loss)	(1,347)	(9,586)
      Other comprehensive income
      Foreign currency translation adjustment	561	(2,790)
      Remeasurements of retirement benefit	51	(28)
      Total other comprehensive income	613	(2,819)
      Comprehensive income	(733)	(12,405)
      Comprehensive income attributable to:
      Owners of the parent	(763)	(12,405)
      Non-controlling interest	29	(0)

   3. Quarterly Consolidated Statements of Cash Flows

      (Millions of yen)
      Nine mont Dec. 31,	hs ended Nine mont 2024 Dec. 31	hs ended , 2025
      Net cash provided by (used in) operating activities
      Profit (loss) before income taxes	(1,384)	(8,977)
      Depreciation and amortization	2,732	3,096
      Impairment loss	108	3,870
      Depreciation and amortization on other	128	127
      Amortization of goodwill	517	784
      Increase (decrease) in allowance for doubtful accounts	0	14
      Increase (decrease) in reserve for bonuses	(146)	(495)
      Increase (decrease) in retirement benefit liabilities	30	11
      Loss (gain) on remeasurement of contingent consideration	-	76
      Interest income	(220)	(133)
      Interest expenses	15	420
      Loss (gain) on sale and retirement of fixed assets	18	41
      Gain on reversal of asset retirement obligations	-	(53)
      Decrease (increase) in trade receivables-trade	3,366	5,747
      Decrease (increase) in inventories	(2,552)	(616)
      Increase (decrease) in notes and accounts payable-trade	1,463	66
      Increase (decrease) in consumption taxes payable	1,110	(75)
      Increase (decrease) in other current liabilities	(589)	(368)
      Other	(413)	(156)
      Subtotal	4,186	3,381
      Interest and dividend income received	224	152
      Income expenses paid	(15)	(14)
      Income taxes refund (paid)	487	(253)
      Net cash provided by (used in) operating activities	4,883	3,265
      Net cash provided by (used in) investing activities
      Payments into time deposits	(1,563)	(2,173)
      Proceed from withdrawal of time deposits	1,486	2,153
      Purchase of property, plant and equipment and intangible assets	(9,367)	(12,332)
      Proceeds from sales of property, plant and equipment and intangible assets	4	30
      Purchase of other depreciable assets	(238)	(12)
      Purchase of shares of subsidiaries resulting in change in scope of consolidation	-	(6,416)
      Other	(0)	43
      Net cash provided by (used in) investing activities	(9,678)	(18,708)
      Net cash provided by (used in) financing activities
      Proceeds from long-term borrowings	-	9,951
      Dividends paid	(2,047)	(2,049)
      Dividends paid to non-controlling interests	-	(69)
      Repayments of lease obligations	(159)	(158)
      Payment for the settlement of contingent consideration	-	(1,480)
      Other	(0)	(0)
      Net cash provided by (used in) financing activities	(2,207)	6,192
      Effect of exchange rate change on cash and cash equivalents	195	(408)
      Net increase (decrease) in cash and cash equivalents	(6,806)	(9,659)
      Cash and cash equivalents at beginning of period	33,171	27,036
      Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries	-	49
      Cash and cash equivalents at end of the period	26,364	17,427

   4. Notes to Quarterly Consolidated Financial Statements (Notes on Financial Reporting Framework)

   The quarterly consolidated financial statements have been prepared in accordance with Article 4, Paragraph 1 of the Standards for Preparation of Quarterly Financial Statements, etc. of the Tokyo Stock Exchange, Inc. and accounting standards generally accepted in Japan for quarterly financial statements (however, that the omissions set forth in Article 4, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements, etc. have been applied).

   (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.

   (Changes in the Scope of Consolidation or Scope of Equity Method Application) Significant changes in the scope of consolidation during the period :

   The scope of consolidation was changed due to the acquisition of Curio Bioscience, Inc. which became a consolidated subsidiary from the first quarter.

   (Notes on Segment Information)

   Since the Group operates in a single business segment, segment information is omitted.

3. Supplemental Information

1. Trends in Key Indicators for Business Management

   1. Cash Flows

      (Millions of yen)

      	Nine months ended Dec. 31, 2024 (Apr. 1, 2024 - Dec. 31, 2024)	Nine months ended Dec. 31, 2025 (Apr. 1, 2025 -Dec. 31, 2025)	Year ended Mar. 31, 2025 (Apr. 1, 2024- Mar. 31, 2025)
      Cash flow from operating activities	4,883	3,265	5,844
      Cash flow from investing activities	(9,678)	(18,708)	(10,912)
      Cash flow from financing activities	(2,207)	6,192	(2,256)

   2. Sales Breakdown by Region

      (Millions of yen)

      	Nine months ended Dec. 31, 2024 (Apr. 1, 2024 - Dec. 31. 2024)	Nine months ended Dec. 31, 2025 (Apr. 1, 2025 - Dec. 31, 2025)	Year ended Mar. 31, 2025 (Apr.1, 2024 - Mar. 31, 2025)
      Japan	8,107	8,493	15,062
      United States	9,879	9,210	12,997
      China	5,099	4,221	8,522
      Asia excluding Japan and China	2,034	2,017	2,855
      Europe	3,895	4,187	5,248
      Others	266	263	353
      Total	29,282	28,392	45,039

2. Comparative Consolidated Statement of Income

(Rounded down to one million yen)