IR Release

This document has been prepared in accordance with accounting principles and practices generally accepted in Japan, and translated for reference only from the original Japanese version. The Company gives no warranty with respect to its correctness.

The original disclosure in Japanese was released on November 10, 2022

Takara Holdings Inc.

Notice Concerning the Revision of Consolidated Business Results Forecast and Dividend Forecast
 (Increased Dividend) for the Fiscal Year Ending March 31, 2023

Takara Holdings is revising the consolidated business results forecasts and the dividend forecast that it released on August 4, 2022, for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023) as stated below. These revisions were based on consideration of recent performance trends.

1.  Revision of the business results forecast

(1) Revised figures for the business results forecast for the fiscal year ending March 31, 2023 (from April 1, 2022, to March 31, 2023)

(2) Reason for revision

For the fiscal year ending March 31, 2023, net sales of Takara Shuzo and Takara Shuzo International Group are expected to be roughly the same level as the previous forecast (announced on August 4, 2022). Meanwhile, net sales are expected to exceed the previous forecast for the Takara Bio Group, despite sales for the CDMO business falling short of the forecast. The strong performance is attributable to sales of reagents, instruments, and gene therapy, especially general research reagents and reagents related to COVID-19 tests, outperforming the forecast.

In terms of profit, Takara Shuzo expects operating income to fall below the previous forecast due to a further increase in costs, while the Takara Shuzo International Group expects operating income to exceed the previous forecast thanks to an improvement in gross profit margin. The Takara Bio Group is expected to report an operating income higher than the forecast, due to an increase in gross profit following the increase in net sales.

As a result, net sales, operating income, ordinary income, and net income attributable to owners of the parent are expected to exceed the previous forecast for the Takara Group as a whole.
 

2. Revision of the dividend forecast
(1) Details of revision

(2) Reason for revision

The Company’s policy on shareholder returns is to continuously pay stable dividends with a payout ratio in the high 30’s% range in line with sustainable earnings growth. Based on this upward revision of the business forecast, the Company has revised the year-end dividend forecast for the fiscal year ending March 31, 2023 from the initial forecast of ¥29 to ¥31 per share, announced on August 4, 2022.

Further, today consolidated subsidiary Takara Bio Inc. (Prime Section of Tokyo Stock Exchange, security code number: 4974) also announced revisions to forecasts and dividend forecasts for the fiscal year ending March 31, 2023.
 

* 　The above-mentioned forecasts have been prepared based on the information available as of the date of announcement of this document and could differ from the actual results, etc.