Consolidated Financial Results for the Six Months Ended September 30, 2025

November 11, 2025

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: +81-775-565-6970

Scheduled date to file semi-annual securities report: November 12, 2025 Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes

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

1. Consolidated financial results for the six months ended Sep. 30, 2025 (from Apr. 1, 2025 to Sep. 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Sep. 30, 2025	18,794	(4.9)	(2,342)	-	(2,485)	-	(6,911)	-
      Sep. 30, 2024	19,758	3.4	417	(70.4)	549	(65.6)	513	(52.7)

      Note: Comprehensive income	For the six months ended Sep. 30, 2025:	¥(11,083) million	- %
      	For the six months ended Sep. 30, 2024:	¥6,417 million	(35.6%)

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      Sep. 30, 2025	(57.40)	-
      Sep. 30, 2024	4.26	-

   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
   Sep. 30, 2025	131,854	102,649	77.6	850.21
   Mar. 31, 2025	125,334	115,849	92.2	959.19

   Reference: Equity

   As of Sep. 30, 2025: ¥102,378 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: Yes

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: Yes

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 Semi-annual Consolidated Financial Statements (Changes in the Scope of Consolidation or Scope of Equity Method Application)" of "2. Semi-annual Consolidated Financial Statements and Primary Notes" on page 9 of the attached document.

2. Adoption of accounting treatment specific to the preparation of semi-annual 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 Sep. 30, 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 Sep. 30, 2025	113 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)

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.

• 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 Six Months ended September 30, 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. Overview of Financial Results for the Six Months Ended September 30, 2025 2

     1. Overview of Financial Results 2

     2. Overview of Financial Position 2

     3. Overview of Cash Flows 3

     4. Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements. 3

  2. Semi-annual Consolidated Financial Statements and Primary Notes 4

     1. Semi-annual Consolidated Balance Sheets 4

     2. Semi-annual Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income 6

        (Semi-annual Consolidated Statements of Profit or Loss) 6

        (Semi-annual Consolidated Statements of Comprehensive Income) 7

     3. Semi-annual Consolidated Statements of Cash Flows 8

     4. Notes to Semi-annual Consolidated Financial Statements 9

        (Notes on Premise of Going Concern). 9

        (Notes in case of Changes in Marked Amount of Shareholders' Equity) 9

        (Changes in the Scope of Consolidation or Scope of Equity Method Application) 9

  3. Supplementary Information 9

     1. Trends in Key Indicators for Business Management 9

     2. Comparative Consolidated Statement of Income 10

     3. Comparative Statement of Income Relating to Consolidated Financial Forecasts 11

1. Overview of Financial Results for the Six Months ended September. 30, 2025
   1. Overview of Financial Results

      The outlook for the global economy during the six months ended September 30, 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 six months ended September 30, 2025, net sales decreased to ¥18,794 million (down 4.9% year-on-year) as sales of reagents, instruments, and gene medicine declined, despite an increase in CDMO sales. Cost of sales increased to ¥8,230 million (up 12.5% year-on-year) due to changes in the sales mix, and other reasons. As a result, gross profit decreased to ¥10,564 million (down 15.1% year-on-year). Selling, general and administrative (SG&A) expenses were ¥12,907 million (up 7.3% year-on-year) due to the acquisition of Curio Bioscience, Inc. ("Curio") and the recording of goodwill amortization, and operating loss was ¥2,342 million (compared with an operating profit of ¥417 million in the same period of the previous fiscal year).

      Due to the recording of an operating loss, the ordinary loss amounted to ¥2,485 million (compared with an ordinary profit of ¥549 million in the same period of the previous year).

      The semi-annual net loss before income taxes and other adjustments was ¥6,323 million (compared with a profit before income taxes and other adjustments of ¥427 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 ¥248 million due to the reversal of deferred tax assets, among other factors. Consequently, the semi-annual net loss attributable to owners of the parent was ¥6,911 million (compared with net income attributable to owners of parent of ¥513 million in the same period of the previous fiscal year).

   2. Overview of Financial Position

      Total assets at the end of the six months ended September 30, 2025 were ¥131,854 million, an increase of ¥6,519 million from the end of the previous semi-annual fiscal year. This was mainly due to increase of ¥10,449 million in technology-based intangible assets and ¥7,630 million in construction in progress, despite decrease of ¥8,508 million in cash and deposits, ¥5,227 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 six months ended September 30, 2025 were ¥29,204 million, an increase of

      ¥19,719 million from the end of the previous semi-annual fiscal year. This was mainly due to an increase of ¥10,000 million in long-term borrowings and ¥8,844 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 six months ended September 30, 2025 were ¥102,649 million, a decrease of

      ¥13,200 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥4,121 million in foreign currency translation adjustment by the appreciation of the yen, and ¥8,958 million in retained earnings.

   3. Overview of Cash Flows

      Net cash provided by operating activities amounted to ¥3,044 million, a decrease of ¥3,055 million compared with the same period of the previous fiscal year. This was mainly due to cash inflow from ¥4,944 million in decrease of notes and accounts receivable-trade and ¥3,870 million in impairment loss, and cash outflow of ¥6,323 million in a semi-annual loss before income taxes.

      Net cash used in investing activities amounted to ¥18,221 million, an increase of ¥17,825 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 ¥12,144 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 ¥7,732 million (compared with a net outflow of

      ¥2,151 million in the same period of the previous year), primarily due to proceeds from long-term borrowings of

      ¥9,951 million and dividend payments of ¥2,048 million.

      As a result of the above, the balance of cash and cash equivalents at the end of the six months ended September 30, 2025, including the effect of exchange rate change on cash and cash equivalents, decreased by ¥8,043 million from the end of the previous fiscal year to ¥18,993 million.

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

      Revisions have been made to the consolidated financial forecasts that were announced on May 13, 2025.

      For the second half of the current fiscal year, the global life sciences research market is expected to remain sluggish. In Japan, factors such as the shortfall in acquiring new projects in the CDMO business are also having an impact. As a result, net sales are expected to fall below the previously announced forecast. Despite efforts to review personnel structure, prioritize R&D activities, and reduce SG&A expenses, the significant impact of decline in sales is anticipated result in both operating profit and ordinary profit falling below the previously announced forecast. Furthermore, due to the recognition of extraordinary losses and the partial reversal of deferred tax assets announced on October 23, 2025, net income attributable to owners of the parent is expected to fall below the previously announced forecast for full fiscal year period. In light of these circumstances, the company has decided not to issue a year-end dividend. For further details, please refer to the"Notice Concerning Revisions to the

      Financial Results Forecasts and Dividend Forecasts (No dividends), and Partial Return of Executive Remuneration" announced today (November 11, 2025).

      For a comparison of the revised consolidated financial forecast with the previous fiscal year results and the previous consolidated financial forecast, please refer to page 11 "3. Supplementary Information (3) Comparative Statement of Income Relating to Consolidated Financial Forecast".

2. Semi-annual Consolidated Financial Statements and Primary Notes
   1. Semi-annual Consolidated Balance Sheets

      (Millions of yen)

      As of Mar. 31, 2025 As of Sep. 30, 2025

      Assets

      Cash and deposits	29,549	21,041
      Notes and accounts receivable-trade	14,095	8,867
      Merchandise and finished goods	6,794	7,076
      Work in process	1,070	1,286
      Raw materials and supplies	4,575	3,966
      Other	1,672	1,850
      Allowance for doubtful accounts	(77)	(102)
      Total current assets	57,679	43,986
      Non-current assets
      Property, plant and equipment
      Buildings and structures	30,194	29,628
      Accumulated depreciation	(9,771)	(10,074)
      Buildings and structures, net	20,422	19,553
      Machinery, equipment and vehicles	9,075	8,845
      Accumulated depreciation	(6,051)	(6,052)
      Machinery, equipment and vehicles, net	3,024	2,793
      Tools, furniture and fixtures	12,129	11,965
      Accumulated depreciation	(8,550)	(8,705)
      Tools, furniture and fixtures, net	3,578	3,260
      Land	9,250	8,938
      Construction in progress	19,450	27,080
      Others	2,203	2,206
      Accumulated depreciation	(975)	(1,057)
      Others, net	1,227	1,149
      Total Property, plant and equipment	56,954	62,776
      Intangible assets
      Goodwill	6,516	12,124
      Technology-based intangible assets	112	10,562
      Other	1,342	1,236
      Total intangible assets	7,971	23,923
      Investments and other assets
      Investments and other assets	2,730	1,166
      Total investments and other assets	2,730	1,166
      Total non-current assets	67,655	87,867
      Total assets	125,334	131,854

      Current asset

      (Millions of yen) As of Mar. 31, 2025 As of Sep. 30, 2025

      Liabilities

      Notes and accounts payable-trade	1,652	942
      Accrued income taxes	213	160
      Provision for bonuses	1,003	644
      Other	4,261	6,249
      Total current liabilities	7,131	7,996
      Non-current liabilities
      Long-term borrowings	-	10,000
      Retirement benefit liabilities	989	999
      Other	1,363	10,208
      Total non-current liabilities	2,353	21,207
      Total liabilities	9,485	29,204
      Net assets
      Shareholders' equity
      Share capital	14,965	14,965
      Capital surplus	32,893	32,893
      Retained earnings	52,465	43,507
      Treasury shares	(0)	(0)
      Total shareholders' equity	100,324	91,366
      Accumulated other comprehensive income
      Foreign currency translation adjustment	15,331	11,209
      Cumulative remeasurements of retirement (155) (197) benefit
      Total accumulated other comprehensive income	15,175	11,012
      Non-controlling interests	348	270
      Total net assets	115,849	102,649
      Total liabilities and net assets	125,334	131,854

      Current liabilities

   2. Semi-annual Consolidated Statements of Profit or Loss and Semi-annual Consolidated Statements of Comprehensive Income
   (Semi-annual Consolidated Statements of Profit or Loss)

   (Millions of yen)

   	Six months ended	Six months ended
   	Sep. 30, 2024	Sep. 30, 2025
   Net sales	19,758	18,794
   Cost of sales	7,313	8,230
   Gross profit	12,445	10,564
   SG&A expenses
   Employees' salaries and bonuses	3,555	3,601
   Retirement benefit expenses	184	175
   R&D expenses	3,481	3,497
   Provision of allowance	414	328
   Other	4,390	5,305
   Total SG&A expenses	12,028	12,907
   Operating profit (loss)	417	(2,342)
   Non-operating income
   Interest income	149	92
   Foreign exchange gains	-	13
   Rent income from real estate	81	80
   Other	60	21
   Total non-operating income	290	207
   Non-operating expense
   Interest expenses	10	243
   Foreign exchange losses	84	-
   Rent expenses on real estate	36	49
   Other	26	56
   Total non-operating expenses	158	349
   Ordinary profit (loss)	549	(2,485)
   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 14 25 assets
   Impairment loss	108	3,870
   Others	1	25
   Total extraordinary losses	124	3,921
   Semi-annual income (loss) before income taxes and 427 (6,323) others
   Income taxes-current	467	318
   Income taxes-deferred	(571)	248
   Total income taxes	(104)	566
   Semi-annual net income (loss)	531	(6,890)

   Semi-annual net income attributable to non-

   controlling interest

   18 21

   Semi-annual net income (loss) attributable to owners of the parent

   513

   (6,911)

   (Semi-annual Consolidated Statements of Comprehensive Income)				(Millions of yen)
   Six months ended Sep. 30, 2024				Six months ended Sep. 30, 2025
   Semi-annual net income (loss)			531	(6,890)
   Other comprehensive income
   Foreign currency translation adjustment			5,851	(4,151)
   Remeasurements of retirement benefit		34 (42)
   Total other comprehensive income		5,886 (4,193)
   Semi-annual comprehensive income		6,417 (11,083)
   Semi-annual comprehensive income	attributable
   to:
   Owners of the parent		6,362	(11,075)
   Non-controlling interest		55	(8)

   (3) Semi-annual Consolidated Statements of Cash Flows		(Millions of yen)
   	Six months ended	Six months ended
   	Sep. 30, 2024	Sep. 30, 2025
   Net cash provided by (used in) operating activities
   Profit (loss) before income taxes and others	427	(6,323)
   Depreciation and amortization	1,839	2,074
   Impairment loss	108	3,870
   Depreciation and amortization on other	85	85
   Amortization of goodwill	346	537
   Increase (decrease) in allowance for doubtful (0) 30 accounts
   Increase (decrease) in reserve for bonuses	(95)	(330)
   Increase (decrease) in retirement benefit liabilities	8	9
   Interest income	(149)	(92)
   Interest expenses	10	243
   Loss (gain) on sale and retirement of fixed assets	11	(4)
   Gain on reversal of asset retirement obligations	-	(53)
   Decrease (increase) in trade receivables-trade	2,693	4,944
   Decrease (increase) in inventories	(49)	(308)
   Increase (decrease) in notes and accounts payable-trade	(872)	(675)
   Increase (decrease) in consumption taxes payable	1,549	(4)
   Increase (decrease) in other current liabilities	(465)	(468)
   Other	(384)	(358)
   Subtotal	5,063	3,176
   Interest and dividend income received	151	103
   Income expenses paid	(10)	(9)
   Income taxes refund (paid)	895	(226)
   Net cash provided by (used in) operating activities	6,099	3,044
   Net cash provided by (used in) investing activities
   Payments into time deposits	(1,143)	(1,505)
   Proceed from withdrawal of time deposits	1,861	1,807

   Purchase of property, plant and equipment and intangible assets

   (881) (12,144)

   Proceeds from sales of property, plant and equipment

   and intangible assets

   4

   30

   Purchase of shares of subsidiaries resulting in change in scope of consolidation

   -

   (6,416)

   Purchase of other depreciable assets (236) (12)

   Net cash provided by (used in) investing activities (396) (18,221)

   Other (0) 20

   Proceeds from long-term borrowings - 9,951

   Net cash provided by (used in) financing activities

   Dividends paid to non-controlling interests - (69)

   Dividends paid (2,046) (2,048)

   Other (0) -

   Repayments of lease obligations (104) (100)

   Effect of exchange rate change on cash and cash

   equivalents

   1,500

   (647)

   Net cash provided by (used in) financing activities (2,151) 7,732

   Cash and cash equivalents at beginning of period 33,171 27,036

   Net increase (decrease) in cash and cash equivalents 5,052 (8,092)

   Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries

   - 49

   Cash and cash equivalents at end of the semi-annual

   period

   38,223

   18,993

   (4) Notes to Semi-annual Consolidated 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.

   (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 half.

3. Supplemental Information

1. Trends in Key Indicators for Business Management

   1. Cash Flows

      (Millions of yen)

      	Six months ended Sep. 30, 2024 (Apr. 1, 2024 - Sep. 30, 2024)	Six months ended Sep. 30, 2025 (Apr. 1, 2025 - Sep. 30, 2025)	Year ended Mar. 31, 2025 (Apr. 1, 2024- Mar. 31, 2025)
      Cash flow from operating activities	6,099	3,044	5,844
      Cash flow from investing activities	(396)	(18,221)	(10,912)
      Cash flow from financing activities	(2,151)	7,732	(2,256)

   2. Sales Breakdown by Region

      (Millions of yen)

      	Six months ended Sep. 30, 2024 (Apr. 1, 2024 - Sep. 30, 2024)	Six months ended Sep. 30, 2025 (Apr. 1, 2025 - Sep. 30, 2025)	Year ended Mar. 31, 2025 (Apr.1, 2024 - Mar. 31, 2025)
      Japan	5,051	5,496	15,062
      United States	6,631	6,197	12,997
      China	3,962	2,556	8,522
      Asia excluding Japan and China	1,377	1,357	2,855
      Europe	2,559	3,018	5,248
      Others	175	168	353
      Total	19,758	18,794	45,039

2. Comparative Consolidated Statement of Income

   		Six months ended Sep.30, 2024 Actual	Six months ended Sep. 30, 2025 Actual	Y/Y Change		Y/Y Ratio
   (Net sales) Reagents Instruments CDMO Gene Therapy		15,405 426 2,274 1,652	14,272 402 2,546 1,573	(1,133) (23) 271 (78)		(7.4%) (5.6%) 12.0% (4.7%)
   Total net sales		19,758	18,794	(963)		(4.9%)
   (Operating profit and Loss) Net sales		19,758	18,794	(963)		(4.9%)
   Cost of sales		7,313	8,230	917		12.5%
   Gross profit		12,445	10,564	(1,880)		(15.1%)
   SG & A expenses		12,028	12,907	878		7.3%
   	Transportation expenses	301	273		(28) 9	(9.5%)
   	Advertising expenses	40	49			23.4%
   	Promotion expenses	399	445		46 15 851	11.6%
   	R&D expenses	3,481	3,497			0.4%
   	Administrative expense, other	7,663	8,514			11.1%
   	Enterprise taxes (external standards taxation)	141	126	(15)		(10.7%)
   Operating profit		417	(2,342)	(2,759)		-
   (Non-operating income and Expenses) Non-operating income		290	207	(83)		(28.7%)
   Non-operating expenses		158	349	191		120.9%
   Ordinary profit		549	(2,485)	(3,034)		-
   (Extraordinary income & Losses) Extraordinary income		2	83	80		-
   Extraordinary losses		124	3,921	3,796		-
   Income before income taxes and others		427	(6,323)	(6,750)		-
   Income taxes		(104)	566	671		-
   Net income		531	(6,890)	(7,422)		-
   Net income (loss) attributable to non-controlling interests		18	21	2		12.9%
   Net income attributable to owners of the parent		513	(6,911)	(7,424)		-

   Depreciation and amortization (Property, plant and equipment and intangible assets)	1,839	2,074	235	12.8%
   Amortization of goodwill	346	537	190	54.9%

3. Comparative Statement of Income Relating to Consolidated Financial Forecasts

(Rounded down to one million yen)