COMPANY PROFILE 6 Pump Industry Analyst September 2009 Nikkiso Co Ltd, Japan Profile Founded in 1953 as the sole agent for Milton Roy pumps in Japan, Nikkiso has evolved into a diversified industrial manufacturing company. Operations are split into two business segments: Industrial and Medical. Following a restructure on 1 April 2009, the Industrial Business has three divisions: Pump; Industrial Solutions and Aerospace. The Pump division (formerly the Fluid Technologies unit) manufactures, sells and maintains canned motor pumps, metering pumps, high-speed centrifugal pumps (manufactured under licence from Sundyne Corp) and cryogenic pumps used to transport liquefied natural gas. Nikkiso acquired Sundyne’s canned motor pump business in late 2005, and recently completed the acquisition of German metering pump specialist Lewa GmbH (see Pump Industry Analyst, July 2009). Nikkiso also has a joint venture with KSB AG, Nikkiso-KSB GmbH, based in Altenstadt, Germany, which develops, manufactures and sells canned motor pumps (see Pump Industry Analyst, May 2008). Analysis In the year to 31 March 2009, Nikkiso’s Fluid Technologies unit (now the Pump division) achieved record sales of ¥21 665 million (up 18.5%), helped by solid cryogenic sales. While there was a steady flow of orders for mainline products such as sealless pumps and after sales services during the first half of the year, orders plummeted during the second half of the year, with major customers in the oil, pet- rochemical, and liquid natural gas industries postponing or cancelling projects because of the global recession and the strong yen. In the year to 31 March 2009, orders received by the Fluid Technologies Unit were down 27.0% year on year to ¥16 535 million. Key Figures (¥ billion) Nikkiso Co Ltd Year ended 31.3 2009 2008 2007 2006 2005 Orders 67.6 – – – – Of Which: Fluid Technologies 16.5 – – – – Net Sales 72.4 72.5 65.4 58.9 54.3 Of Which: Fluid Technologies 21.7 18.3 17.6 15.0 14.4 Gross Profit 21.1 23.1 20.4 18.9 17.0 Operating Income 4.8 6.9 5.7 5.6 3.7 Net Income 1.4 3.7 4.0 3.7 2.5 Contact Details Nikkiso Co Ltd President & CEO: Toshihiko Kai Address: 3-43-2 Ebisu Shibuya-ku Tel: +81 3 3443 3711 Tokyo 150-8677 Fax: +81 3 3473 4963 Japan Web: www.nikkiso.co.jp Recent Events Pump Industry Analyst, July 2009). to develop, manufacture and sell canned motor pumps (see Pump Industry Analyst, May 2008). COMMENT In terms of pumps, Nikkiso’s acquisition of Germany’s Lewa is a transforming deal for the Japanese company. Lewa’s E145 million annual turnover should almost dou- ble Nikkiso’s pump revenues, with very little product and customer overlap. The two companies’ combined R&D expertise should also benefit each company’s product development process. ■

Nikkiso Co Ltd, Japan

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COMPANY PROFILE

6Pump Industry Analyst September 2009

Nikkiso Co Ltd, Japan ProfileFounded in 1953 as the sole agent for Milton Roy pumps in Japan, Nikkiso has evolved into a diversified industrial manufacturing com-pany. Operations are split into two business segments: Industrial and Medical. Following a restructure on 1 April 2009, the Industrial Business has three divisions: Pump; Industrial Solutions and Aerospace. The Pump division (formerly the Fluid Technologies unit) manufactures, sells and maintains canned motor pumps, metering pumps, high-speed centrifugal pumps (manufactured under licence from Sundyne Corp) and cryogenic pumps used to transport liquefied natural gas. Nikkiso acquired Sundyne’s canned motor pump business in late 2005, and recently completed the acquisition of German metering pump specialist Lewa GmbH (see Pump Industry Analyst, July 2009). Nikkiso also has a joint venture with KSB AG, Nikkiso-KSB GmbH, based in Altenstadt, Germany, which develops, manufactures and sells canned motor pumps (see Pump Industry Analyst, May 2008).

AnalysisIn the year to 31 March 2009, Nikkiso’s Fluid Technologies unit (now the Pump division) achieved record sales of ¥21 665 million (up 18.5%), helped by solid cryogenic sales. While there was a steady flow of orders for mainline products such as sealless pumps and after sales services during the first half of the year, orders plummeted dur-ing the second half of the year, with major customers in the oil, pet-rochemical, and liquid natural gas industries postponing or cancelling projects because of the global recession and the strong yen. In the year to 31 March 2009, orders received by the Fluid Technologies Unit were down 27.0% year on year to ¥16 535 million.

Key Figures (¥ billion)Nikkiso Co Ltd Year ended 31.3

2009 2008 2007 2006 2005

Orders 67.6 – – – –Of Which: Fluid Technologies 16.5 – – – –

Net Sales 72.4 72.5 65.4 58.9 54.3Of Which:Fluid Technologies 21.7 18.3 17.6 15.0 14.4

Gross Profit 21.1 23.1 20.4 18.9 17.0

Operating Income 4.8 6.9 5.7 5.6 3.7

Net Income 1.4 3.7 4.0 3.7 2.5

Contact DetailsNikkiso Co LtdPresident & CEO: Toshihiko KaiAddress: 3-43-2 Ebisu

Shibuya-ku Tel: +81 3 3443 3711 Tokyo 150-8677 Fax: +81 3 3473 4963 Japan Web: www.nikkiso.co.jp

Recent EventsPump Industry Analyst,

July 2009).

to develop, manufacture and sell canned motor pumps (see Pump Industry Analyst, May 2008).

COMMENTIn terms of pumps, Nikkiso’s acquisition of Germany’s Lewa is a transforming deal for the Japanese company. Lewa’s E145 million annual turnover should almost dou-ble Nikkiso’s pump revenues, with very little product and customer overlap. The two companies’ combined R&D expertise should also benefit each company’s product development process. ■

http://www.nikkiso.co.jp