33
IR Contact: Business Strategy & Management Dept. (TEL: +81-(0)6-6456-4633 E-mail: [email protected]) October 29, 2015 The information, forecasts, etc. available in this material are the Company’s judgment as of the preparation date thereof and do not always guarantee the accuracy of these information. Further, the Company and the information provider will not be responsible for any damages incurred according to these information. * The material is not prepared for the purpose of soliciting investments. Results of Operations for the First Half of the Fiscal Year Ending March 31, 2016 October 29, 2015 Nihon Trim Co., Ltd.

Results of Operations for the First Half of the Fiscal ... · Nikkei CNBC–Sundays 12:00-12:55 BS12–Sundays 18:00-18:55 Sun TV–Mondays 22:00-22:55 Aired from April 27 to May

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Page 1: Results of Operations for the First Half of the Fiscal ... · Nikkei CNBC–Sundays 12:00-12:55 BS12–Sundays 18:00-18:55 Sun TV–Mondays 22:00-22:55 Aired from April 27 to May

IR Contact: Business Strategy & Management Dept. (TEL: +81-(0)6-6456-4633 E-mail: [email protected])

October 29, 2015

The information, forecasts, etc. available in this material are the Company’s judgment as of the preparation date thereof and do not always

guarantee the accuracy of these information. Further, the Company and the information provider will not be responsible for any damages

incurred according to these information. * The material is not prepared for the purpose of soliciting investments.

Results of Operations for the First Half of the

Fiscal Year Ending March 31, 2016

October 29, 2015

Nihon Trim Co., Ltd.

Page 2: Results of Operations for the First Half of the Fiscal ... · Nikkei CNBC–Sundays 12:00-12:55 BS12–Sundays 18:00-18:55 Sun TV–Mondays 22:00-22:55 Aired from April 27 to May

Contents

2

1. Overview of the Nihon Trim Group Business Pages 3 - 13

2. Business Performance, Forecast, Indices, etc. Pages 14 – 20

3. Supplementary Materials Pages 21 - 33

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3

The Business Goals of the Trim Group

� Transform from a household medical device

supplier into a medical company

� Prioritize prevention to reduce treatment and

nursing home care

� Establish new business vectors to rank with EHW

systems in new business domains including the

advanced medical care and the agriculture field

� Take Japanese technologies to other countries

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4

Building a Base for Progress

� Stronger public relations and advertising activities (a more powerful

brand)

� Nationwide sales of agricultural EHW systems

� Tests to confirm diabetes benefits of drinking EHW (clinical trials)

� Considering the launch of Electrolyzed Water Hemodialysis® in China

� Development and commercialization of a genetic diagnosis kit for next-

generation genetic testing systems

� Expanding the cell storage business

[Drinking Water]

[Agriculture]

[Research]

[Medical]

[Advanced Medical Care/Genetic Diagnosis]

[Advanced Medical Care/Regenerative Medicine]

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5

[Drinking Water 1]

Sales of Electrolyzed Hydrogen Water (EHW) System

Raising awareness of Nihon Trim through TV commercials, etc.

by taking advantage of the hydrogen water boom

Sales volume in the first-half rose to a record-high 43,628 units.

1) Brisk sales in Direct Sales� Workplace sales: sales efficiency per each presentation at a record-high level

� Installation and referral sales : the number of units sold per salesperson set a

new record high

2) OEM and Wholesale Sales� Scheduled to start new large-scale OEM deals

in the fourth quarter

� Six large-scale deals under negotiation

3) Sales of water purification cartridges� Grow steadily. The number of units sold increased

17.2% year on year

Switching from PET/gallon bottles/water purifier to EHW systems

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6

[Drinking Water 2]

Stronger Public Relations and Advertising Activities (1)

TV commercials� From April to September, air on Tuesdays during TOKUDANE, a Fuji TV morning

program that is on from 8:00-9:55

From October, air on Tuesdays during Hayashi Osamu’s Ima-desyo! KOZA, a TV

Asahi program that is on from 19:00-19:54

� Air during Kenja-no-Sentaku LeadersNikkei CNBC–Sundays 12:00-12:55

BS12–Sundays 18:00-18:55

Sun TV–Mondays 22:00-22:55

� Aired from April 27 to May 10 on 65 broadcasting

stations nationwide as a spot advertising, costing

100 million yen

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7

[Drinking Water 2]

Stronger Public Relations and Advertising Activities (2)

Increasing our exposure through newspapers, magazines and other

channels� The number of publications since April 2015

36 newspapers, 8 magazines, 9 TV programs, 175 news articles on website (in total)

Yumiko Shaku’s official blogBusiness Style, a Fuji TV

program on May 10

Mamapocket a.k.a. Mamapoke, Summer issue

GoodsPress, July issueSpecial Feature “Secret of

Hydrogen Water”

FYITTE, October issue“Recommend Vogue Corner”

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8

Rental and selling the AG series of agricultural EHW systems

� The number of locations installed : 80+

[Agriculture 1]

Nationwide Sales of Agricultural EHW Systems

[AG-30 agricultural EHW system]

Ordinary melonEHW melon

Foliar application of EHW

The left is an EHW melon with a size of 6L and 18 degrees of sugar content. The right is an ordinary melon with a size of 3L and 14 degrees of sugar content. Not only its size but also sugar content was increased to be more delicious.

The EHW melons are so oversized that they are

shipped with their size hand-written on a box.

Ordinary melonEHW melon

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9

A partnership agreement signed with the Kochi Prefectural Government, City of Nankoku, JA Nankoku City and Kochi University� To verify the benefits, and promote the use and branding, of Reduced Vegetables®

[Agriculture 2]

Partnership Agreement Signed with Industrial, Public and Academic Sectors in Kochi Prefecture

Reduced Vegetables® Project signing ceremony

* SHUKAN HODO, BIZ Street (a TV program on BS-TBS on Saturday, October 17)

In featuring the interview with Mr. Okuno, new Chairperson of Central Union of Agricultural Co-operatives

(JA-Zenchu), on reorganization of JA, a story of growing Reduced Vegetables® by the Nankoku style was aired.

From the left, Mr. Sakamoto, Member of the Prefectural

Assembly, Mr. Hashizume, Mayor of Nankoku City, Mr.

Morisawa, Mr. Ozaki, Prefectural Governor, Mr.

Wakiguchi, President of Kochi University and Mr. Takada,

President of JA Nankoku City

Yomiuri Shimbun, July 4, 2015 Evening KOCHI, July 3, 2015

July 3, 2015

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10

Next Generation Agriculture Expo(at Makuhari Messe from Wednesday, October 14 to Friday, October 16)

� A high level of interest in Reduced Vegetables®: Meeting with 50+ prospects

[Agriculture 3]

Exhibited at Next Generation Agriculture Expo

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11

[Research]

Differentiating EHW from Other Waters

(1) Tests to confirm diabetes benefits of drinking EHW

(clinical trials)

� The Ethics Committee of Tohoku University expected

to give approval in November

� Scheduled to start a trial in Fiscal 2015

(2) Identify physical properties of EHW� On October 1, 2015, started a joint research with

the School of Engineering, University of Tokyo

(3) Prove superiority of EHW to hydrogen

water dissolved by bubbling� A joint research with the Faculty of Agriculture,

Kyushu University

� Plan to submit a paper in March 2016

Scanning electron microscope

An electron microscope picture

of electrode surface

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12

[Medical]

To Expand Electrolyzed Water Hemodialysis

(1) Develop a highly functional next-generation electrolyzed

water hemodialysis system� Scheduled to introduce the system to 5 hospitals in Japan as a trial

(in a gradual manner from November 2015)

� Start a full-scale operation from around June 2016

Estimated total domestic market: 90 billion yen,

presently introduced in 13 facilities having 226 beds

(2) Considering the launch of Electrolyzed Water

Hemodialysis® in China� China has about 120 million people with diabetes and

the number of people requiring dialysis will continue to

grow at a accelerated pace.

� The market is expected to grow as China does not have

enough dialysis facilities.

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(1) Development and commercialization of a genetic diagnosis kit for next-

generation genetic testing systems

� Shortens testing time, able to analyze

many genes

� Complete development of basic

technology, and commercialize a

testing panel for colorectal cancer

(2) Expanding the cell storage

� Number of storage: 35,736 individuals

(as of September 30, 2015)

Number of hospitals where cells were collected: 1,611 facilities

� Scheduled to obtain status of approved facilities under the Act Concerning Safety

Assurance of Regenerative Medicine, etc., and promote transplant

� Expand service area by employing sales personnel

� Expand business domains by effectively leveraging the current facilities that are

capable of storing cells for a long term

13

[Advanced Medical Care]

Trim Medical Holdings Inc.

[TrimGen Corporation]

[StemCell Institute Inc.]

1.2 million to 660 million wellsNext-generation sequencers

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14

2. Business Performance, Forecast, Indices, etc.

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15

[1H FY3/16 Results: Consolidated Statement of Income]

Amount % Amount %

Net sales 6,678 100.0% 7,438 100.0% 760 11.4%

Cost of sales 1,732 25.9% 1,865 25.1% 132 7.7%

Gross profit 4,945 74.1% 5,573 74.9% 628 12.7%

SG&A expenses 3,617 54.2% 4,037 54.3% 420 11.6%

Operating income 1,327 19.9% 1,535 20.6% 207 15.7%

Non-operating income 68 1.0% 99 1.3% 31 45.7%

Non-operating expenses 30 0.5% 13 0.2% -17 -57.3%

Ordinary income 1,365 20.4% 1,621 21.8% 256 18.8%

Extraordinary income - - - - - -

Extraordinary losses 148 2.2% - - -148 -

Income before income taxes 1,216 18.2% 1,621 21.8% 405 33.3%

Income taxes 647 9.7% 593 8.0% -54 -8.4%

Minority interests in income (loss) -79 -1.2% 0 0.0% 79 -100.2%

Net income 647 9.7% 1,028 13.8% 380 58.8%

Net income per share 45.24 yen 59.3%

Change

(Amount)

Change

(%)

76.26 yen 121.50 yen

(Millions of yen)1H FY3/15 Results 1H FY3/16 Results

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16

Amount % Amount %

(Flow-type business)

DS Division (workplace sales) 2,112 31.6% 2,442 32.8% 330 15.7%

HS Division (installation and referral sales) 946 14.2% 1,011 13.6% 65 6.9%

SS Division (store event sales) 323 4.8% 390 5.2% 66 20.7%

MS Division (OEM and wholesale sales) 746 11.2% 724 9.7% -22 -3.0%

MS Division (after-sales services) 152 2.3% 165 2.2% 13 8.8%

EHW systems sales, total 4,280 64.1% 4,734 63.6% 453 10.6%

(Stock-type business)

Cartridges 1,554 23.3% 1,777 23.9% 223 14.4%

(Sales of subsidiaries)

TRIM (Guangzhou) Water & Health Co., Ltd. 18 0.3% 46 0.6% 27 143.7%

PT. SUPER WAHANA TEHNO 143 2.2% 205 2.8% 61 42.5%

(Others) 246 3.7% 269 3.6% 22 9.2%

Total 6,244 93.5% 7,032 94.5% 787 12.6%

Genetic diagnosis 93 1.4% 25 0.3% -68 -73.1%

Regenerative medicine 336 5.0% 380 5.1% 43 12.9%

Electrolyzed water hemodialysis and

MGO measurement2 0.0% 0 0.0% -2 -82.7%

Total 433 6.5% 405 5.5% -27 -6.3%

6,678 100.0% 7,438 100.0% 760 11.4%

Change

(%)(Millions of yen)

Wa

te

r H

ea

lth

ca

re

Bu

sin

ess

Me

dic

al B

usin

ess

Consolidated, total

1H FY3/15 Results 1H FY3/16 Results Change

(Amount)

[1H FY3/16 Results: Sales by Business Segment]

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17

Percentage of the amount

in current assets: 82.9%

* Listed-company average: 38.6%(with the reference to the aggregate

summary of financial results for the fiscal

year ended March 31, 2015 on the Tokyo

Stock Exchange website)

(Millions of yen)As of Mar. 31,

2015

As of Sep. 30,

2015

Current assets 15,767 16,424

A: Cash and deposits 10,747 11,172

B: Accounts receivable-

installment2,444 2,443

A + B: Total 13,192 13,616

Non-current assets 5,738 5,664

Total assets 21,506 22,089

(Millions of yen)As of Mar. 31,

2015

As of Sep. 30,

2015

Total assets 21,506 22,089

Net assets 15,661 15,833

Equity ratio 72.8% 71.7%

[A Healthy Financial Condition (Consolidated)]

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18

8,2328,889

9,617

10,690

13,144 12,834

1,2651,561

2,0122,440

3,442

2,527

0

4,000

8,000

12,000

16,000

FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014 FY3/2015 FY3/2016

(fct.)Net sales Ordinary income

[Trend in Consolidated Results of Operations]

7,438 (First half)

1,621 (First half)

(Millions of yen)

15,100

3,150

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19

10.9%

15.4%

17.6%

20.9%22.8%

26.2%

19.7%

21.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 (1H)

Ordinary Income to Net Sales

ROE/ROA

2-for-1 stock split

in October 2013Listed company average ROE: 8.1%

(Consolidated basis, 2,158 companies

whose fiscal years ended March 2015)

[Management Indices]

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20

FY3/09 FY3/11FY3/10 FY3/12 FY3/13 FY3/14

50

100 yen equivalent based

on the number of shares

before the stock split

35

Trend in dividend (Yen)

� Dividend policy: Placing importance on paying stable dividends, while payout ratio to improve gradually

� Shareholder special benefit plan: Discount coupon for Nihon Trim products

50

FY3/16 (fct.)

60

30

50 50

70

2-for-1 stock split

in October 2013

50

FY3/15

[Return to Shareholders]

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3. Supplementary Materials

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Functional Water Business

22

(1) Use highly functional water

(2) Help the people of Japan lead healthy lives

(3) Become an important industry for health care,

agriculture and industry sectors

(4) Utilize technologies created in Japan

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Electrolyzed Hydrogen Water (EHW) SystemAdvantages of EHW systems

(1) Improves health

Effect/efficacy of controlled medical device:

Improved gastrointestinal conditions

(2) Ability to use fresh EHW at home at any time

(3) Low cost / Approx. 5 yen per liter

(when using TRIM ION HYPER for six years and replacing the cartridge once each year)

(4) Ecology

Environmentally responsible due to the use of fewer PET bottles and ability to

recycle purification cartridges

� About 5% of Japan’s approximately 50 million households use EHW systems (water purifier ownership rate is about 40% for reference)

� The utilization rate is expected to increase to 20% (10 million households)(¥1 trillion market at ¥100,000 per unit)

� Based on the outlook for a 30% market share, the goal is to have Nihon Trim EHW

systems in 3 million households.

(1) EHW systems: ¥300 billion

(2) Purification cartridge sales: ¥20 billion/year

(assuming a 70% replacement ratio)

Source: Yano Research Institute

“2014 White Paper on Water Purifiers/Water Conditioners”

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Healthcare Expenditures for Nihon Trim Employee

Preventing diseases is one way to lower healthcare expenditures

Average Monthly Healthcare Expenditures / Nihon Trim Employees

(Yen)

Nationwide Nihon Trim

Japan Health

Insurance Insured people (employees)

Per capita

expenditures

Per capita

expenditures

vs. all-

Japan

20-29 5,488 3,272 60%

30-39 7,037 4,727 67%

40-49 8,859 4,825 54%

50-59 14,290 7,771 54%

60-69 22,602 18,447 82%

(Yen) Average ageHealthcare

expenditure

Fiscal 2013

National

average 44.1 13,018

(338employees)

38.47,798(61.0%)

Fiscal 2012

National

average 44.0 12,586

(315employees)

38.37,784(61.0%)

Fiscal 2011

National

average 43.9 12,586

(306employees)

38.46,940(55.1%)

Average Healthcare Expenditures by Age (Fiscal 2012)

*Source: Japan Health Insurance Association “Company Workforce Health Diagnosis” (Fiscal 2012, 1.63 million business sites, 35.12 million people)

*Red percentages in parentheses are Nihon Trim expenses as a pct. of national average

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Feedback from EHW Users (Based on responses from 10,999 people)

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Sample research theme – Komatsuna

26

[Agriculture]

Cultivation of Functional Plants by Using EHW

Reduced

Vegetables®

(1) Using EHW increases yields

(2) Better quality results in highly functional plants

(3) Used at plant factories, a grower-processor-

distributor framework

The AG-30 agricultural EHW system

Tap water EHW EHWTap water

Plant Comparison for Komatsuna: EHW vs. Tap Water

Trolox: A water-soluble vitamin E derivative that can permeate

cells and have antioxidant effect

Trolox equivalent: Measured using the DPPH method

(method used to measure the antioxidant strength)

Growing by the Faculty of Agriculture of Kochi University, Analysis

by Japan Food Hygiene Association

With EHW, leaves are longer and there is more plant volume

above and below the ground. The amount of antioxidants

increased, too.

Plant length

(cm)

Above ground

(g/plant)

Below ground

(g/plant)

EHW 18.9 6.78 0.37

Tap water 15.7 4.57 0.30

Plant analysis

Nutrition Antioxidants

B-carotene(μg/100g)

Vitamin C(mg/100g)

Trolox equivalent(mg/100g)

EHW 3,600 14 8

Tap water 3,200 13 7

Nutrition/

antioxidant

analysis

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Electrolyzed Water Hemodialysis –Improving patients’ quality of life by reducing side effects–

[Medical]

A Next-generation Dialysis Method (Patented)

� A revolutionary treatment method which uses a dialysis fluid that

includes hydrogen improves patients’ quality of life by reducing oxidation

stress, inflammations and side effects

� Number of dialysis patients in Japan: About 314,000

Number of dialysis facilities: 4,264

Number of bedside dialysis systems: About 128,000

8th Electrolyzed Water Hemodialysis

Study Group Meeting was held on January

31, 2015 in Chiyoda-ku, Tokyo

Electrolyzed water hemodialysis system

For individual use

Water

Preliminary filter

Purification

Activated charcoal Electrolysis module

Electrolyzed hemodialysis water tank

UV lamp

Reverse osmosis module

Reverse osmosis tank

UV lamp

For many people

Electrolyzed reverse

osmosis water

How electrolyzed reverse osmosis water is produced

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[Advanced Medical Care: Genetic Testing]

Development, Manufacture and Sales of Genetic Testing Kits

� Use exclusive technologies for R&D, manufacturing and sales

for genetic testing kits

� Use individualized treatments for drug selection in order to

reduce side effects; lowers cost of treatment and risk of

accidents involving treatment

Major Products and Services

Gene extraction Pathogen

detection kit

Genetic testing kit Outsourced

studies

A genetic testing kit to allow selecting drugs for individualized medical care

–Reduces side effects, the cost of treatments and the risk of accidents involving treatments–

Members of TrimGen Corporation

Equipment used for research

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Number of newborns

Number of cord blood

storage

Cord blood storage

ratio

USA 3,080,000 250,000 7%

South Korea 490,000 60,000 12%

Taiwan 200,000 10,000 5%

Japan 1,030,000 3,000 0.3%

[Advanced Medical Care: Regenerative Medicine]

Long-term Storage of Cord Blood

Uses of Cord Blood

1. For the treatment of diseases [hematopoietic stem cell transplant]

Leukemia (brothers-sisters) / Aplastic anemia (donor, brothers-sisters)

Congenital immunodeficiency (brothers-sisters) / Lymphoma malignum

(brothers-sisters), and others

2. For diseases at the clinical trial stage (overseas) [regenerative medicine and

cellular therapy]

Cerebral palsy / Hypoxic-ischemic encephalopathy / Traumatic brain injury / Type

1 diabetes / Spinal cord injury / Hypoacusis, and others

3. For diseases at the R&D stage (overseas, Japan) [regenerative medicine and

cellular therapy]

Chronic pneumonitis / Parkinsonian tremor / Cerebral infarction /

Hydrencephalus / Alzheimer's disease / Organ regeneration (liver, etc.), and

others

29

Japan’s largest private cord blood bank

–Storing cord blood in anticipation of its use in regenerative medicine and cellular therapy

to treat diseases in the future–

� Enactment of Act Concerning Safety

Assurance of Regenerative Medicine,

etc. (November 25, 2014)

� Clinical studies are expected to be

revitalize in Japan

Annual Cord Blood Storage Ratio for Newborns

Yomiuri Shimbun, August 27, 2014

Cord blood

stem cell

Hematopoietic

stem cell

Red blood cell

Lymphocyte cell

White blood cell

Blood platelet

Nerve cell

Vascular endothelial cell

Bone cell

Heart muscle cell

Others (stem cell, etc.)

Collection

SeparationMesenchymal

stem cell

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(3) School of Engineering, The University of Tokyo

[Research Field 1]

Research Projects with Universities

[Basic Research Field] - Identifying the mechanism for the benefits of EHW

(1) Karolinska Institute (Sweden)

Department of Neuroscience

(2) School of Agriculture, Kyushu University

[Medical/Preventive Medical Care Field] - Applied for hemodialysis (clinical

study)(Japan)

(4) Fukushima Medical University

(5) School of Medical Science, Tohoku University/

Kashima Hospital (Fukushima)/Nikko Memorial Hospital (Hokkaido), etc.

(Overseas)

(6) Clinical Laboratory Sciences and Medical Biotechnology,

National Taiwan University (Taiwan)

(7) Karolinska University Hospital (Sweden)

[Agricultural Production Field] - Confirm the benefits of EHW on crops and

develop an agricultural EHW system

(8) Faculty of Agriculture and Agricultural Science Program,

Kochi University(9) Faculty of Agriculture, Kyoto Prefectural University/

Kyoto Prefectural University of Medicine

Tohoku University Hospital

Karolinska University Hospital

Hemodialysis Ward

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[2014]Clinical and Experimental Nephrology Jointly authored paper with Tohoku Univ.

The strong relation between post-hemodialysis blood methylglyoxal levels and post-hemodialysis blood glucose concentration riseEnvironmental control in biology Jointly authored paper with Kochi Univ.

Effects of deoxidized nutrient solution on growth of komatsuna plants[2013]Hemodialysis International Jointly authored paper with Fukushima Medical Univ.

Effect of a hydrogen (H2)-enriched solution on the albumin redox of hemodialysis patientsMedical Gas Research Jointly authored paper with Tohoku Univ.

Amelioration of cardio-renal injury with aging in dahl salt-sensitive rats by H2-enriched electrolyzed water[2012]PLoS ONE Jointly authored paper with Karolinska Institute and Kyushu Univ.

Molecular Hydrogen Reduces LPS-Induced Neuroinflammation and Promotes Recovery from Sickness Behaviour in MiceCytotechnology Jointly authored paper with Kyushu Univ.

Electrolyzed reduced water scavenges active oxygen species and suppresses cancer cell invasion[2011]Trends in Food Science and Technology Jointly authored paper with Kyushu Univ.

Advanced research on the health benefit of reduced waterBMC Proceedings Jointly authored paper with Kyushu Univ.

The neuroprotective effects of electrolyzed reduced water and its model water containing molecular hydrogen and Pt nanoparticlesBMC Proceedings Jointly authored paper with Kyushu Univ.

Anti-diabetes effect of water containing hydrogen molecule and Pt nanoparticlesBioscience, Biotechnology, and Biochemistry Jointly authored paper with Kyushu Univ.

Mechanism of the lifespan extension of caenorhabditis elegans by electrolyzed reduced water[2010]Nephrology Dialysis Transplantation Jointly authored paper with Tohoku Univ. School of

MedicineIntake of water with high levels of dissolved hydrogen produced by electrolysis suppresses ischemia-induced cardio-renal injury in Dahl salt sensitive rats Cytotechnology Jointly authored paper with Kyushu Univ.

Suppressive effects of electrolyzed reduced water on alloxan-induced apoptosis and type 1 diabetes mellitusBioscience, Biotechnology, and Biochemistry Jointly authored paper with Kyushu Univ.

Extension of the lifespan of caenorhabditis elegans by electrolyzed reduced waterNephrology Dialysis Transplantation Jointly authored paper with Tohoku Univ. School of

Medicine A novel bioactive hemodialysis system using dissolved dihydrogen(H2) produced by water electrolysis: A clinical trial

Nephrology Dialysis Transplantation Jointly authored paper with National Taiwan Univ.

Medical SchoolElectrolyzed-reduced water dialysate improves T-cell damage in end-stage renal disease patients with chronic hemodialysisFree Radical Research Jointly authored paper with Tohoku Univ. School of Medicine

Methylglyoxal augments intracellular oxidative stress in human aortic endothelial cells[2009]Nephron Clinical Practice Jointly authored paper with Tohoku Univ. School of Medicine

Biological effect of electrolyzed water in hemodialysis[2008]Vascular Medicine Jointly authored paper with Tohoku Univ. School of Medicine

Investigation of participation of methylglyoxal on cardio renal syndromeLangmuir Jointly authored paper with Kyushu University

Kinetic analysis of superoxide anion radical-scavenging and hydroxyl radical-scavenging activities of platinum nanoparticlesBiological & Pharmaceutical Bulletin Jointly authored paper with Kyushu Univ.

Inhibitory effect of electrolyzed reduced water on tumor angiogenesis[2007]Hemodialysis International Jointly authored paper with Tohoku Univ. School of Medicine

Less-oxidative hemodialysis solution rendered by cathode-side application of electrolyzed water [2006]Kidney International Vol.70 Jointly authored paper with National Taiwan Univ. Medical

SchoolElectrolyzed-reduced water reduced hemodialysis-induced erythrocyte impairment in end-stage renal disease patients[2005]Cytotechnology 2005 Jointly authored paper with Kyushu Univ.

Electrolyzed reduced water supplemented with platinum nanoparticles suppresses promotion of two-stage cell transformation[2003]Kidney International 2003 Jointly authored paper with National Taiwan Univ. Medical

SchoolReduced hemodialysis-induced oxidative stress in end-stage renal disease patients by electrolyzed reduced waterCytotechnology 2003 Jointly authored paper with Graduate School of Kyushu Univ.

Protective mechanism of reduced water against alloxan-induced pancreatic β-cell damage: scavenging effect against reactive oxygen species[1997]BBRC Jointly authored paper with Graduate School of Kyushu Univ.

Electrolyzed-reduced water scavenges active oxygen species and protects DNA from oxidative damage

[Research Field 2]

Excerpt from Joint Research Reports

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[Corporate Overview]

Member of Nippon Keidanren

Member of Industrial Promotion Committee,

Kansai Economic Federation

Member, Japan Hospital Association

Director, Functional Water Foundation

Corporate Overview

Main businessManufacture and sale of household EHW system

(medical device)

Established June 12, 1982

Headquarters22F, Herbis Ent, 2-2-22 Umeda, Kita-ku, Osaka, Japan

Tel. +81-(0)6-6456-4600 Fax. +81-(0)6-6455-3951

Capital 992,597,306 yen

SharesListed on the First Section of the Tokyo Stock Exchange

Securities Identification Code: 6788

Issued shares 8,656,780 shares

Shareholders 5,429 (as of the end of September 2015)

Employees

(consolidated)463 (as of the end of September 2015)

President Shinkatsu Morisawa

Main banksSumitomo Mitsui Banking Corporation

Sumitomo Mitsui Trust Bank, Limited

HERBIS ENT, where the Company’s

headquarters are located

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[Nihon Trim Group Companies]

Trim Electric Machinery

(Nankoku city, Kochi prefecture: completed in 2002)

TRIM (Guangzhou) Water & Health Co., Ltd.(Based in China; established in October 2005)

PT SUPER WAHANA TEHNO(Based in Indonesia; invested in October 2006)

ISO:22000:2005

MEDFIRST TRIM CO., LTD.(Based in Taiwan; established in April 2012)

Overseas Business

33

Medical Business

Trim Electric Machinery Co., Ltd.(Production factory; established in February 1990)

ISO9001: 2008 ISO13485: 2003

Functional Water & Cell Analyzing Center

Co., Ltd.(Measurement and scientific analysis of functional water;

established in April 2004)

Trim Life Support Co., Ltd.(After-sales services; established in February 2012)

Others

Water Healthcare Business

Trim Medical Holdings Inc. (Holding company; established in May 2007)

TrimGen Corporation(Development of genetic diagnostic kit; established in January 1999)

ISO9001: 2008

StemCell Institute Inc.(Private cord blood bank; established in August 1999)

Trim Medical Institute Co., Ltd.(Contract measurements of glycolytic metabolites and sales of

electrolyzed water hemodialysis system; established in December

2007)