October 27, 2017

Results of Operations for the First Half of the

Fiscal Year Ending March 31, 2018

Shinkatsu Morisawa, President

1

(Securities Identification Code: 6788)

IR Contact: Business Strategy & Management Dept. (TEL: +81-(0)6-6456-4633 E-mail: ir@nihon-trim.co.jp)

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.

1. Overview of the Nihon Trim Group Business

2

3

With an entrepreneurial spirit in mind,

the Trim Group is aspiring

to become a global group of medical companies!

Water Healthcare Business

Drinking water

Electrolyzed hydrogen water (EHW)

apparatus

Overseas

EHW apparatus (China, Taiwan and

South Korea)

Bottled water (Indonesia)

Agriculture

Kangen Vegetable

Medical

Electrolyzed water hemodialysis

Hospital operation (China)

Advanced medical care

Cord blood bank

Development of Japanese cell

medicines

Regenerative/reproductive

medicine-related equipment

Medical / Advanced Medical Care Business

1. Further uncovering the effects of EHW

2. Shifting to the B-to-B oriented package sales with “Health

and Productivity Management” as a key concept

3. Expanding business overseas

4. Starting a full-scale sales of the electrolyzed water

hemodialysis

5. Hospital operation in China

6. Strengthening and expanding the foundation of

regenerative medicine-related business

Trim Group’s Challenges

4

日本トリム日本トリム日本トリム日本トリム

Medical equipment manufacture certification number:

229AGBZX00069000

A Groundbreaking New Product Released on Sep. 1

1. Developed by applying technologies implemented in

electrolyzed water hemodialysis

2. A medical device that can produce up to approx.

1,300 ppb hydrogen rich water (three times as rich

as that produced by the conventional model)

3. Runs at the cost of only approx. 7 yen per liter (when

used for 5 years with replacement of a cartridge

once a year)

5

Effect: improvement of gastrointestinal conditions

“Yomiuri Shimbun” Dec. 7, 2016 Morning Edition “Nikkei Shimbun” January 11, 2017 Morning Edition

“Yomiuri Shimbun” February 28, 2017 Evening Edition

Shifting Sales Approach to Focus on Proposing

“Health and Productivity Management”

6

Health and Productivity Management site in Nihon Trim website

Pursuing a lump-sum purchase contract by

promoting the concept to corporate customers

Strengthening B-to-B sales with “Health and

Productivity Management” as a key concept

7

Certificate for Excellent Enterprise for Health and

Productivity Management (White 500)

Towards Improving Sales Efficiency

0

0.5

1

1.5

2

2.5

3

3.5

4

Apr-15

May-15

Jun-15

Jul-15

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

Dec-16

Jan-17

Feb-17

Mar-17

Apr-17

May-17

Jun-17

Jul-17

Aug-17

Sep-17

8

Workplace sales efficiency by month

[Basic Research Field]

[Medical/Preventative Medical Care Field]

[Agricultural and Livestock Field]

Uncovering More Functions of EHW

9

Continue to establish more definitive evidences to increase the penetration rate

for EHW apparatus and thereby to expand business

1. Riken, National Research and Development

AgencyIdentifying the mechanism of EHW

2. Karolinska InstituteUnderstanding the effects on reducing depression by drinking

EHW

3. School of Engineering, The University of Tokyo Identifying the physical properties of EHW

4. Kochi University of Technology Understanding the effects of EHW-ice on maintaining freshness

5. Ritsumeikan University Graduate School of

Sport and Health Science

Understanding the physiological effects of EHW drinking during

dehydration or physical exercise

6. School of Medical Science, Tohoku UniversityElectrolyzed water hemodialysis (clinical studies)/Effects on drinking EHW on diabetes

(clinical studies)

7. Clinical Laboratory Sciences and Medical

Biotechnology, National Taiwan University Electrolyzed water hemodialysis (clinical studies)

8. Kochi Medical SchoolEffects of drinking EHW on lifestyle diseases (clinical studies)

Effects on reduction of healthcare expenditures (epidemiological survey)

9. Faculty of Agriculture and Agricultural Science Program,

Kochi UniversityDemonstration of Kangen Vegetables

10. Obihiro University of Agriculture and Veterinary Medicine Effects on preventing gastric ulcers of race horses by drinking EHW

RIKEN

Target: 3 million units

1) A penetration rate of 20% will give the market size of 10 million units in volume

and 1 trillion yen in value (assuming a current penetration rate of approx. 6% and a

market share of 30%).

2) Achieving the targeted 3 million units will result in annual purification cartridge

sales of 20 billion yen (assuming replacement rate of 70%).

Establishing a Stable Earnings Foundation

10

FY3/12FY3/11 FY3/13 FY3/14 FY3/15 FY3/17FY3/16 FY3/18

Forecast

2,2192,417

2,649

3,062 3,114

3,536

3,884

(Millions of yen)

Purification cartridge sales by year

2,189(1st half of FY3/18)

4,199

Expanding Sales Channels to Overseas

Overseas annual sales of EHW apparatus to reach

10 thousand units in 3 years

2. New customers development accelerated1) Vietnam: Started in-store sales mainly in Hanoi with the target sales

of 2,000 units for Fiscal 2017

2) China: Planning to expand into major cities with the target sales of

2,000 units for Fiscal 2017

3) Other markets to be developed going forward: Include India, Sri

Lanka, Malaysia, Thailand, Cambodia, the Philippines, and

Myanmar Opening ceremony in Vietnam (Sep. 2017)

11

1. Bottled water business in Indonesia

PT. SUPER WAHANA TEHNOThe bottled water market is expanding (to approx. 130 billion yen).

Since November 2016, the production capacity of PET bottles and gallon

bottles has increased two-fold and five-fold, respectively.

Full scaled activities underway, centering on the western part of Java

Island with approx. 24 thousand outlets nation-wide.

Expanded into a 10 billion yen business

EHW apparatus for agricultural use: AG-30

1. First half results: 19 units

2. Next-generation, Dutch-style vegetable growing facility

1) 7,300m2, eave height 5.5m, construction cost approx. 340 million

yen

2) A project subsidized by the Ministry of Agriculture, Forestry and

Fisheries (for Fiscal 2016)

3) Started the second season cultivation of bell pepper since

September 2017

4. Started an experimental cultivation in the City of Noshiro as part of

feasibility study since May 2017

Next-generation greenhouse in the City of Nankoku

12

Towards Promoting Kangen Vegetables

Targeted to achieve sales of 100 million yen for FY3/19

Enhancing Sales Promotion of

Electrolyzed Water Hemodialysis

Targeted to achieve sales of 200 million yen for FY3/1913

2. Electrolyzed Water Hemodialysis can reduce side effects and improve QOL

of dialysis patients� Mortality rate and risk of complication reduced by 41% (based on the results of a 5-year prognosis study,

on which a paper has been submitted and is currently under review)

� Fatigue and itchiness after dialysis are mitigated, dosage of antihypertensive drugs reduced (on which a

paper has been published in the September edition of “PLOS ONE”)

* Orders of over 60 million yen were received in October.

* Mortality rate: 9.6% (2015 JSDT statistics data)

* Transfer due to death or complication reduced by 41%

(presented by Dr. Masaaki Nakayama at the 62nd

Annual Meeting of the Japanese Society for Dialysis)

90

82

74

67

61

94

89

84

8077

Reducing the Number of Patients Who Newly Developed Cardiovascular and Cerebrovascular Disorder or Have Deceased

Assuming 25 beds and 100 patients

Years lapsed

(No. of patients)

Electrolyzed water hemodialysisTransfer out

Transfer out

No. of patients receiving electrolyzed water hemodialysis

Conventional dialysis

1. Benefits to hospital management

Electrolyzed Water Hemodialysis can:

� Decrease revenue from conventional dialysis

and reduce drug costs, as well as labor costs

(by mitigating the burden on nursing staff and

medical technicians)

� Increase a fee for medical services to reduce

mortality risk

* A hospital with 25 beds and 100 patients is

estimated to have a positive effect of approx.

300 million yen in 5 years.

No. of patients receiving conventional hemodialysis

1 year 2 years 3 years 4 years 5 years

100

90

80

70

60

50

Increase in referral

Providing Japanese-style medical services at “Han Kun Hospital” for treatments of diabetes and

dialytic therapy

1) Flagship hospital to be opened in Beijing by the end of 2017, the opening ceremony

scheduled in January 2018.

2) Started negotiation with additional multiple candidate districts and other activities to

expand the hospital chain in China

Concept image of the hospital building

Groundbreaking ceremony on March 2, 2017

Operation of Hospital Chain in China

14

Targeted to open 10 hospitals in 5 years

Government-led “Internationalization of Japanese medical” is being promoted

under a private/public partnership.

The Largest Private Cord Blood Bank in Japan

Targeted to achieve the storage rate of 1% in 5 years

1. Notified the Ministry of Health, Labour and Welfare as a private cord blood bank operator; the

company name to be listed on the Ministry’s HP.

2. Kochi Medical School is currently implementing Japan’s first clinical research on cerebral palsy in

childhood with autologous cord blood using stem cells stored at StemCell Institute.

3. FY3/18 (plan): Sales of 970 million yen (up 21.3% year-on-year), operating profit of 210 million yen

(up 31.3% year-on-year)

15

Number of storage: 41,889 individuals

(Accounts for approx. 96% of the total storage by private banks as of September 30, 2017)

<Annual Cord Blood Storage Ratio for Newborns>

Number of newborns

Number of cord blood collected

Cord blood collection

ratio

USA 4,030,000 120,000 3%

South

Korea460,000 70,000 15%

Taiwan 210,000 10,000 5%

Japan 980,000 3,000 0.3%

・ License on manufacturing specified cell products based on the Act Concerning Safety

Assurance of Regenerative Medicine, etc. acquired on Feb. 5, 2016

・ Filed a “notification of umbilical cord blood banking business ” with the Head of Health Service

Bureau of the Ministry of Health, Labour and Welfare on Sep. 22, 2017.

Nihon Keizai Shimbun

(April 1, 2017)

1. Discovering drugs made in Japan based on cells derived from

human placenta and umbilical cord

2. Aiming to acquire manufacturing and sales approval in 2020.

3. Concluded a joint research agreement with The Institute of

Medical Science, The University of Tokyo (Sep. 2017)

4. Concluded a joint research agreement for regenerative and

restoration medicine with Kansai Medical University (Oct. 2017)

Strengthening the Footing of

Advanced Medical Care Business

Established Human Life CORD Japan Inc. (April 2017)

Capital and business alliance with STREX Inc. (May 2017)

A medical device manufacturer that manufactures stretch system, procreate

system, etc.

The market size of the domestic industry peripheral to regenerative

medicine in Japan (according to the estimate of the Ministry of Economy,

Trade and Industry)

2020: 95 billion yen

2030: 550 billion yen

2050: 1.3 trillion yen

Aim to acquire a 5%+ market share in the peripheral industry

[STREX's products]

High-performance, Compact

Programmable Deep Freezer

Freezes IVF/Stem Cells/Umbilical

Cord Blood of Human and Animals

(refrigeration to minus 80 degrees C)

16

1. Transform from a household medical device supplier into a medical company

2. Prioritize prevention to reduce treatment and nursing home care

3. Establish new business vectors in business domains including the fields of medical care,

advanced medical care, and agriculture

4. Gain global presence with technologies made in Japan

Drinking water EHW apparatus business 38.0 billion yen

Medical/advanced

medical care

To be developed into a

mainstay business in

the future

Electrolyzed water hemodialysis

Cord blood bank

Cell drug discovery

Regenerative/reproductive medicine-

related equipment

Hospital operation in China

32.0 billion yen

Agriculture

Establishing Kangen Vegetable® brand

Sale of EHW apparatus for growing Kangen

Vegetables

2.0 billion yen

Industrial

Cleansing system for dies, semiconductors

and other items

Rust prevention

0.5 billion yen

Overseas

EHW apparatus (China, Taiwan, South

Korea)

Bottled water (Indonesia)

20.0 billion yen

New business - 7.5 billion yen

Target business volume per year

Become a

100 billion yen

company

The Business Goals of the Trim Group

17

2. Business Performance, Indices, etc.

18

Amount % Amount %

Net sales 8,122 100.0% 6,944 100.0% -1,178 -14.5%

Cost of sales 1,996 24.6% 1,785 25.7% -211 -10.6%

Gross profit 6,126 75.4% 5,158 74.3% -968 -15.8%

SG&A expenses 4,360 53.7% 4,156 59.9% -204 -4.7%

Operating profit 1,765 21.7% 1,001 14.4% -764 -43.3%

Non-operating income 78 1.0% 81 1.2% 3 3.8%

Non-operating expenses 124 1.5% 12 0.2% -112 -90.3%

Ordinary profit 1,719 21.2% 1,070 15.4% -649 -37.8%

Extraordinary income 67 0.8% - - -67 -

Extraordinary losses - - - - - -

Profit before income taxes 1,787 22.0% 1,070 15.4% -717 -40.1%

Income taxes 567 7.0% 369 5.3% -198 -34.9%

Profit attributable to non-

controlling interests37 0.5% 35 0.5% -2 -5.4%

Profit 1,182 14.6% 664 9.6% -518 -43.8%

Net income per share

Change

(Amount)

Change

(%)

140.55yen 79.93yen

(Rounded down to millions of yen)1H FY3/17 Results 1H FY3/18 Results

19

1H FY3/18 Results: Consolidated Statement of Income

Amount % Amount %

(Flow-type business)

DS Division (workplace sales) 2,582 31.8% 1,988 28.6% -594 -23.0%

HS Division (installation and referral sales) 1,064 13.1% 850 12.2% -214 -20.1%

SS Division (store event sales) 396 4.9% 240 3.5% -156 -39.4%

MS Division (OEM and wholesale sales) 799 9.8% 462 6.7% -337 -42.2%

MS Division (after-sales services) 169 2.1% 141 2.0% -28 -16.6%

EHW systems sales, total 5,013 61.7% 3,683 53.0% -1,330 -26.5%

(Stock-type business)

Cartridges 1,988 24.5% 2,189 31.5% 201 10.1%

(Sales of subsidiaries)

TRIM (Guangzhou) Water & Health Co., Ltd. 27 0.6% 42 0.6% 15 55.6%

PT. SUPER WAHANA TEHNO 330 4.1% 351 5.1% 21 6.4%

(Others) 342 4.2% 230 3.3% -112 -32.7%

Total 7,701 94.8% 6,498 93.6% -1,203 -15.6%

Genetic diagnosis 19 0.2% - - -19 -

Regenerative medicine 397 4.9% 445 6.4% 48 12.1%

Electrolyzed water hemodialysis and

MGO measurement3 - 0 0.0% -3 -98.0%

Total 420 5.2% 445 6.4% 25 6.0%

8,122 100.0% 6,944 100.0% -1,178 -14.5%

Change

(%)(Rounded down to millions of yen)

Wa

te

r H

ea

lth

ca

re

Bu

sin

ess

Me

dic

al B

usin

ess

Consolidated, total

1H FY3/17 Results 1H FY3/18 Results Change

(Amount)

20

1H FY3/18 Results: Sales by Business Segment

(Rounded down to millions of yen) As of Mar. 31, 2017 As of Sep. 30, 2017

Current assets 17,228 18,215

A: Cash and deposits 11,480 12,657

B: Accounts receivable-

installment2,363 2,538

A + B: Total 13,843 15,195

Non-current assets 6,789 6,537

Total assets 24,018 24,752

(Rounded down to millions of yen) As of Mar. 31, 2017 As of Sep. 30, 2017

Total assets 24,018 24,752

Net assets 17,754 17,830

Equity ratio 73.9 72.0

21

A Healthy Financial Condition (Consolidated)

* TSE listed-company average:

30.6%(with the reference to the aggregate

summary of financial results for the

fiscal year ended March 31, 2017 on

the Tokyo Stock Exchange website)

Percentage of the amount in

current assets: 83.4%

25 2530

35

50 50

60 60 60

FY3/10 FY3/12FY3/11 FY3/13 FY3/14 FY3/15

Adjusted for the number of shares after the stock split

Dividend trend (Yen)

� Dividend policy: Emphasize paying stable dividends, while payout ratio to improve gradually

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

FY3/17

2-for-1 stock split

in October 2013

FY3/16 FY3/18 (fct.)

22

Initiatives to Enhance Shareholder Value

Corporate Overview

Main businessManufacture and sale of household medical device

(EHW apparatus)

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 5,218 (as of the end of September 2017)

Employees

(consolidated)479 (as of the end of September 2017)

President Shinkatsu Morisawa

Main banksSumitomo Mitsui Banking Corporation

Sumitomo Mitsui Trust Bank, Limited

23

About Us

HERBIS ENT, where the Company’s

headquarters are located

Member of Nippon Keidanren

Member of Industrial Promotion Committee,

Kansai Economic Federation

Member, Japan Hospital Association

Director, Functional Water Foundation

Medical Business

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

February 1990)

ISO9001: 2008 ISO13485: 2003

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

Others

Water Healthcare Business

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)

Han Kun International Holdings Limited(China business; a specified purpose company

established in December 2015)

Hankook Trim(Based in Korea; established in April 2016)

Overseas Business

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

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)

Human Life CORD Japan Inc.(R&D, production and sales of Japanese cell medicines; established in

April 2017)

STREX Inc.(Research and development, manufacture and sales of medical

equipment; established in October 2003)

24

Nihon Trim Group Companies

Trim Electric Machinery

(The City of Nankoku, Kochi Prefecture: completed in 2002)