Corporate Profile September 8, 2017 Corporate Data History - PowerPoint PPT Presentation

Corporate Profile September 8, 2017

Corporate Data ＜ History ＞ ＜ Corporate Data ＞ ※ as of March 31, 2017 • 1967 Started the biomedical business at TaKaRa Group • Established : April 1, 2002 • 2002 Established Takara Bio Inc. as a result of corporate separation from Takara Shuzo • Issued Capital : 14,965 million yen • 2004 Listed on the Mothers section of the Tokyo Stock Exchange • President : Koichi Nakao • 2014 Started the operation of the Center for Gene and Cell • Number of employee : 1,344 Processing • 2015 Completed a new facility in Kusatsu, Shiga • Head Office : Kusatsu, Shiga Moved the Headquarters office from Otsu to Kusatsu • Major Shareholder : • 2016 Listed on the First Section of Tokyo Stock Exchange Takara Holdings, Inc. (60.91%) Takara Holdings Inc. Takara Shuzo Takara Shuzo Takara International Takara Bio Inc. Co., Ltd. Healthcare Inc. Co., Lrd. Headquarters Office Center for Gene and Research Laboratory and Cell Processing 2

Takara Bio Group’s Business Strategy Medical Field Gene Therapy Business Gene therapy for cancer, etc. Aiming to commercialize gene therapy CDMO business Bioindustry Business Regenerative Stable Cash-generating Business medical products Research Support for R&D and Research and production reagents Production contracting services Research Field Agribio Business Scientific Leverage biotechnology instruments in the food field Biotechnology Molecular biology Cell biology Functional foods Mushrooms Food Fields 3

Business Overview  Sales by business category (Fiscal 2017 * ) Sales Operating Income (millions of yen) (millions of yen) 33,200 Agribio Gene Therapy 35,000 3,500 8.1% 1.7% 29,375 29,729 3,300 Contract research 3,202 30,000 3,000 25,969 Research services and others reagent 14.4% 23,905 2,667 66.2% 25,000 2,500 Scientific 20,564 instruments Bioindustry 2,302 9.9% 90.5% 20,000 2,000 1,954 1,691  Sales by business area (Fiscal 2017 * ) 15,000 1,500 Europe Other Asia Other 7.9% 10,000 1,000 4.8 % 0.9% 5,000 500 China Japan 16.2% 49.6% 0 0 USA overseas 20.6% 50.4% *: Fiscal year ended 4 March 31, 201 ７

Bioindustry Business Sales (millions of yen) ○ Research Reagents 30,386 ・ Gene amplification 30,000 ・ Gene expression 26,573 4,146 Others ・ Next Generation Sequencing etc... 25,000 3,800 3,350 Contract research services 2,911 ○ Scientific Instruments 20,000 Scientific ・ Gene amplification instruments 22,506 ・ Mass spectrometry systems 15,000 19,436 Research reagents ・ Single-cell analysis systems 10,000 FY2017 FY2018(e) ○ Contract Research Services ・ Genome sequencing analysis ・ Vector production, Cell processing ・ Technical support and licensing for cancer immunotherapy in clinic etc... 5

Major events in the past 1979 Launching the first Japanese-made 7 restriction enzymes 1988 Commencement of providing PCR system under the exclusive distribution right in Japan 1993 Established Takara Biotechnology (Dalian) Co., Ltd. in China 2005 Acquisition of Clontech Laboratories, Inc. in the U.S. 2014 Acquisition of Cellectis AB in Sweden 2017 Acquisition of WaferGen Bio-systems, Inc. and Rubicon Genomics, Inc. in the U.S. The number of all research reagents available from Takara Bio reaches approximately 7,000 6

Our major manufacturing facility of research reagents, Takara Biotechnology (Dailian) generates a strongly cost competitiveness 7

Global Network Takara Bio Europe S.A.S. (36) Takara Biomedical Technology (Beijing) Co., Ltd. (71) Takara Bio Europe AB (35) Takara Biotechnology (Dalian) Co., Ltd. (506) Takara Bio USA, Inc. (151) (Göteborg) (Paris) (Madison, WI) (Ann Arbor, MI) (Mountain View, CA) (New Delhi) (Fremont, CA) WaferGen Bio-systems, Inc DSS Takara Bio India Pvt. Ltd. (52) Takara Bio Inc. (434) Rubicon Genomics, Inc Takara Korea Biomedical Inc. (25) ※ Number of employees as of March 31, 2017 Overseas Japan 24% 29% Geographic turnover of Overseas Japan Research reagents 71% 76% FY2005 FY2017 6.5 billion yen 19.4 billion yen

Business Environment for Regenerative Medicine in Japan Revised Pharmaceutical Act on the Safety of Regenerative Medicine Affairs Law Before Traditional approval Process Therapeutic cells can only be processed in hospitals On Clinical trials Clinical Approval Market After November 25, 2014 (confirmation of efficacy and safety) study Cell processing services can be provided by third party companies Vector Hospitals Cell Processing Production New Pathway for Leading to Center Blood Facility regenerative medical Earlier Patient Access ! collection products Cell processing / Gene transduction Re-Application On Market selection Conditional Approval /time ‐ limited On Clinical Clinical Market ※※ Trials ※ study marketing 市 authorization 販 Vectors for gene transduction Expansion Administration culturing ※ predict likely efficacy and confirm safety ※ further confirmation of efficacy and safety

Future Prediction for Regenerative Medicine and Cell Therapy Related Market in Japan Size of the national market of  Consumables regenerative medicine (Related industries) ・ Research reagents (Billions of yen) ・ Cell culture media and gas- 1,000 permeable bags 980 Services Consumables 800 Equipments 600  Services 360 400 ・ Cell processing services ・ Cell quality management services 200 ・ Production of GMP-grade vectors 85 27 ・ Genome sequencing analysis 0 ・ Technical support and licensing for 2015 2020 2025 2030 ※ Forum for Innovative Regenerative Medicine [Annual Report 2017] cancer immunotherapy in clinic 10

Center for Gene and Cell Processing Launch ： October 2014 Location ： Kusatsu City in Shiga, Japan Full flour space ： approx. 6,600 m 2 ３ F Quality Testing Air-Lock Cell Processing ２ F Recombinant Protein Purification Aseptic Filling Air-Lock Various Virus Vector Production One-way Cell Processing Area Entrance traffic One-way １ F traffic Cell Bank Strage E. coil MCB and Plasmid vector Production Quality Testing (Aseptic Testing, Mycoplasma Testing) Raw Material Storage Aseptic Filling Area Entrance Virus Vector Production Area Entrance 11

Clinical Development of the gene therapy for cancers Oncolytic Virus Engineered T-cell Therapy siTCR Gene Therapy HF10 Anti-cancer Therapy CAR Gene Therapy HF10 Tumor 12 12

HF10 Anti-cancer Therapy Project ～ HF10 + Ipilimumab Phase II trial Data ～ Best Overall Response N = 46 24 weeks 48 weeks Overall Response （ CR + PR ） 18 （ 41% ） 20 （ 45% ） Clinical Benefit （ CR + PR + SD ） 30 （ 68% ） 30 （ 68% ） 8 （ 18% ） 8 （ 18% ） Complete Response (CR) 10 （ 22% ） 12 （ 27% ） Partial Response (PR) 12 （ 27% ） 10 （ 22% ） Stable Disease (SD) 11 （ 25% ） 11 （ 25% ） Progressive Disease (PD) 3 （ 7% ） 3 （ 7% ） Not Evaluable (NE) (Reference information) Best Overall Response Overall Response （ CR + PR ） Ipilimumab ※ 19% Nivolumab ※ Ipilimumab + 57% ※ Larkin J, et al. N Eng J Med. 2015;373:23-34

Exclusive license agreement with Otsuka Pharmaceutical for co-development and commercialization in Japan of HF10  Target disease ： pancreatic cancer, melanoma and other tumors  Co-develop and Commercialize Area ： Japan  Upfront and Milestone Payments Total ： up to approximately 3 billion yen  Takara Bio is to manufacture the HF10 product for use in clinical trials and for post-approval supply in return for unspecified fees to be paid by Otsuka. post-approval scheme Manufacture the Marketing HF10 ※ HF10 product Takara Bio’s facility Hospital ※ Regenerative medicine 14

Schedules of Clinical Development of Gene Therapy Target Target for Independent development project Progress disease commercialization HF10 Oncolytic Virus Japan Melanoma Phase II in progress FY 2019 (TBI-1401) NY-ESO-1 Synovial siTCR Japan Phase I / II in progress FY 2021 (TBI-1301) sarcoma Engineered T cell Therapy CD19 ・ CAR Adult ALL ※ CAR Japan Phase I / II in progress FY 2021 (TBI-1501) Target Joint project Progress partner disease Otsuka Pancreas Japan Phase I in progress cancer Pharmaceutical HF10 Oncolytic Virus (TBI-1401) Phase III planning - US Melanoma underway NY-ESO-1 Esophageal - Japan Phase I in progress (TBI-1301) cancer etc. siTCR Engineered MAGE-A4 Esophageal - Japan Phase I in progress T cell Therapy (TBI-1201) cancer etc. CD19 ・ CAR Childhood - CAR Japan Planning underway ALL ※ (TBI-1501) ※ ALL : B-cell acute lymphocytic leukemia

Agribio Business ○ Functional Foods Sales （ Millions of yen ） Takara Bio develops and manufactures and Takara Healthcare (fellow subsidiary) markets ・ Gagome Kombu (Kelp) “ fucoidan ” 2,400 ・ Herb ( Peucedanum japonicum ) “ Isosamidin ” etc. 2,200 2,313 2,301 2,000 FY2017 FY2018(e) Operating Income ○ Mushrooms （ Millions of yen ） Takara Bio has developed mass production 200 methods of and markets ・ Honshimeji mushrooms ・ Hatakeshimeji mushrooms 100 ・ Bunashimeji mushrooms 121 104 0 FY2017 FY2018(e)