Results of Operations for the First Half of the Fiscal Year Ending
Transcription
Results of Operations for the First Half of the Fiscal Year Ending
Results of Operations for the First Half of the Fiscal Year Ending March 31, 2016 October 29, 2015 October 29, 2015 Nihon Trim Co., Ltd. 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. IR Contact: Business Strategy & Management Dept. (TEL: +81-(0)6-6456-4633 E-mail: ir@nihon-trim.co.jp) Contents 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 2 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 3 Building a Base for Progress [Drinking Water] Stronger public relations and advertising activities (a more powerful brand) [Agriculture] Nationwide sales of agricultural EHW systems [Research] Tests to confirm diabetes benefits of drinking EHW (clinical trials) [Medical] Considering the launch of Electrolyzed Water Hemodialysis® in China [Advanced Medical Care/Genetic Diagnosis] Development and commercialization of a genetic diagnosis kit for nextgeneration genetic testing systems [Advanced Medical Care/Regenerative Medicine] 4 Expanding the cell storage business [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 5 [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 Leaders Nikkei CNBC–Sundays 12:00-12:55 BS12–Sundays 18:00-18:55 Sun TV–Mondays 22:00-22:55 6 Aired from April 27 to May 10 on 65 broadcasting stations nationwide as a spot advertising, costing 100 million yen [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) GoodsPress, July issue Special Feature “Secret of Hydrogen Water” Mamapocket a.k.a. Mamapoke, Summer issue FYITTE, October issue “Recommend Vogue Corner” Business Style, a Fuji TV program on May 10 7 Yumiko Shaku’s official blog [Agriculture 1] Nationwide Sales of Agricultural EHW Systems Rental and selling the AG series of agricultural EHW systems The number of locations installed : 80+ EHW melon Ordinary melon EHW melon Ordinary melon [AG-30 agricultural EHW system] 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. Foliar application of EHW 8 [Agriculture 2] Partnership Agreement Signed with Industrial, Public and Academic Sectors in Kochi Prefecture July 3, 2015 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® Reduced Vegetables® Project signing ceremony Yomiuri Shimbun, July 4, 2015 Evening KOCHI, July 3, 2015 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 * 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. 9 [Agriculture 3] Exhibited at Next Generation Agriculture Expo 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 10 [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 Scanning electron microscope (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 11 An electron microscope picture of electrode surface [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. 12 [Advanced Medical Care] Trim Medical Holdings Inc. (1) Development and commercialization of a genetic diagnosis kit for nextgeneration genetic testing systems [TrimGen Corporation] Shortens testing time, able to analyze many genes Complete development of basic technology, and commercialize a testing panel for colorectal cancer Next-generation sequencers 1.2 million to 660 million wells (2) Expanding the cell storage [StemCell Institute Inc.] 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 2. Business Performance, Forecast, Indices, etc. 14 [1H FY3/16 Results: Consolidated Statement of Income] (Millions of yen) Net sales Cost of sales 1H FY3/15 Results Amount % 6,678 100.0% 1H FY3/16 Results Amount % 7,438 100.0% Change (Amount) 760 Change (%) 11.4% 1,732 25.9% 1,865 25.1% 132 7.7% 4,945 74.1% 5,573 74.9% 628 12.7% 3,617 54.2% 4,037 54.3% 420 11.6% 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% 1,365 20.4% 1,621 21.8% 256 18.8% Extraordinary income - - - - - - Extraordinary losses 148 2.2% - - -148 - 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% 647 9.7% 1,028 13.8% 380 58.8% 121.50 yen 45.24 yen 59.3% Gross profit SG&A expenses Operating income Ordinary income Income before income taxes Net income Net income per share 15 76.26 yen [1H FY3/16 Results: Sales by Business Segment] (Millions of yen) 1H FY3/15 Results Amount % 1H FY3/16 Results Amount % Change (Amount) Change (%) (Flow-type business) Water Healthcare Business DS Division (workplace sales) HS Division (installation and referral sales) SS Division (store event sales) MS Division (OEM and wholesale sales) MS Division (after-sales services) EHW systems sales, total (Stock-type business) Cartridges (Sales of subsidiaries) TRIM (Guangzhou) Water & Health Co., Ltd. PT. SUPER WAHANA TEHNO (Others) Total Medical Business 16 Genetic diagnosis Regenerative medicine Electrolyzed water hemodialysis and MGO measurement Total Consolidated, total 2,112 946 323 746 152 4,280 31.6% 14.2% 4.8% 11.2% 2.3% 64.1% 2,442 1,011 390 724 165 4,734 32.8% 13.6% 5.2% 9.7% 2.2% 63.6% 330 65 66 -22 13 453 15.7% 6.9% 20.7% -3.0% 8.8% 10.6% 1,554 23.3% 1,777 23.9% 223 14.4% 18 143 246 6,244 93 336 0.3% 2.2% 3.7% 93.5% 1.4% 5.0% 46 205 269 7,032 25 380 0.6% 2.8% 3.6% 94.5% 0.3% 5.1% 27 61 22 787 -68 43 143.7% 42.5% 9.2% 12.6% -73.1% 12.9% 2 0.0% 0 0.0% -2 -82.7% 433 6,678 6.5% 100.0% 405 7,438 5.5% 100.0% -27 760 -6.3% 11.4% [A Healthy Financial Condition (Consolidated)] (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% (Millions of yen) Current assets A: Cash and deposits B: Accounts receivableinstallment A + B: Total Non-current assets Total assets 17 As of Mar. 31, 2015 * 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) As of Sep. 30, 2015 15,767 16,424 10,747 11,172 2,444 2,443 13,192 13,616 5,738 5,664 21,506 22,089 Percentage of the amount in current assets: 82.9% [Trend in Consolidated Results of Operations] (Millions of yen) 16,000 15,100 13,144 12,834 12,000 10,690 9,617 8,889 8,232 7,438 (First half) 8,000 3,442 4,000 1,265 1,561 FY3/2010 FY3/2011 2,012 2,440 2,527 3,150 1,621 (First half) 0 18 FY3/2012 Net sales FY3/2013 FY3/2014 Ordinary income FY3/2015 FY3/2016 (fct.) [Management Indices] 30.0% 25.0% Ordinary Income to Net Sales 26.2% 20.9% 21.8% 22.8% 17.6% 20.0% 19.7% 15.4% 15.0% 10.9% 10.0% 5.0% 0.0% FY3/09 ROE/ROA 19 FY3/10 FY3/11 FY3/12 FY3/13 2-for-1 stock split in October 2013 Listed company average ROE: 8.1% (Consolidated basis, 2,158 companies whose fiscal years ended March 2015) FY3/14 FY3/15 FY3/16 (1H) [Return to Shareholders] Dividend policy: Placing importance on paying stable dividends, while payout ratio to improve gradually Shareholder special benefit plan: Discount coupon for Nihon Trim products 2-for-1 stock split in October 2013 70 Trend in dividend (Yen) 50 100 yen equivalent based on the number of shares before the stock split 60 50 50 50 50 30 35 FY3/09 20 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 (fct.) 3. Supplementary Materials 21 Functional Water Business (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 22 Electrolyzed Hydrogen Water (EHW) System Advantages 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 Source: Yano Research Institute “2014 White Paper on Water Purifiers/Water Conditioners” 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) 23 Healthcare Expenditures for Nihon Trim Employee Preventing diseases is one way to lower healthcare expenditures Average Monthly Healthcare Expenditures / Nihon Trim Employees (Yen) National average Average age Healthcare expenditure 44.1 13,018 38.4 7,798 Fiscal 2013 (338 employees) National average 44.0 Fiscal 2012 38.3 (315 employees) National average 43.9 Fiscal 2011 38.4 (306 employees) Average Healthcare Expenditures by Age (Fiscal 2012) (Yen) Nationwide Nihon Trim Japan Health Insurance Insured people (employees) Per capita expenditures Per capita expenditures vs. allJapan 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% (61.0%) 12,586 7,784 (61.0%) 12,586 6,940 (55.1%) *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 24 Feedback from EHW Users (Based on responses from 10,999 people) 25 [Agriculture] Cultivation of Functional Plants by Using EHW (1) Using EHW increases yields Reduced Vegetables® (2) Better quality results in highly functional plants (3) Used at plant factories, a grower-processordistributor framework Sample research theme – Komatsuna Growing by the Faculty of Agriculture of Kochi University, Analysis by Japan Food Hygiene Association Tap water With EHW, leaves are longer and there is more plant volume above and below the ground. The amount of antioxidants increased, too. Plant analysis EHW Tap water Nutrition/ antioxidant analysis EHW Tap water 26 Plant length (cm) Above ground (g/plant) Below ground (g/plant) 18.9 6.78 0.37 15.7 4.57 0.30 Nutrition The AG-30 agricultural EHW system EHW Tap water EHW Plant Comparison for Komatsuna: EHW vs. Tap Water Antioxidants B-carotene Vitamin C Trolox equivalent (μg/100g) (mg/100g) (mg/100g) 3,600 14 8 3,200 13 7 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) [Medical] A Next-generation Dialysis Method (Patented) 8th Electrolyzed Water Hemodialysis Study Group Meeting was held on January 31, 2015 in Chiyoda-ku, Tokyo Electrolyzed Water Hemodialysis –Improving patients’ quality of life by reducing side effects– 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: Number of dialysis facilities: 4,264 Number of bedside dialysis systems: About 314,000 About 128,000 How electrolyzed reverse osmosis water is produced UV lamp UV lamp Water Purification Electrolyzed Preliminary filter Activated charcoal Electrolysis module hemodialysis water tank Reverse osmosis module Reverse osmosis tank Electrolyzed reverse osmosis water For individual use For many people Electrolyzed water hemodialysis system 27 [Advanced Medical Care: Genetic Testing] Development, Manufacture and Sales of Genetic Testing Kits 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– 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 Equipment used for research Gene extraction Pathogen detection kit Genetic testing kit Outsourced studies Members of TrimGen Corporation 28 [Advanced Medical Care: Regenerative Medicine] Long-term Storage of Cord Blood Japan’s largest private cord blood bank –Storing cord blood in anticipation of its use in regenerative medicine and cellular therapy Uses of Cord Blood to treat diseases in the future– Collection Hematopoietic stem cell Red blood cell Lymphocyte cell White blood cell Blood platelet Mesenchymal stem cell Nerve cell Vascular endothelial cell Bone cell Heart muscle cell Others (stem cell, etc.) Cord blood stem cell Separation 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 Annual Cord Blood Storage Ratio for Newborns Number of newborns USA Number of cord blood storage Cord blood storage ratio 3,080,000 250,000 7% South Korea 490,000 60,000 12% Taiwan 200,000 10,000 5% 1,030,000 3,000 0.3% Japan 29 Enactment of Act Concerning Safety Assurance of Regenerative Medicine, etc. (November 25, 2014) Clinical studies are expected to be revitalize in Japan Yomiuri Shimbun, August 27, 2014 [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 (3) School of Engineering, The University of Tokyo [Medical/Preventive Medical Care Field] - Applied for hemodialysis (clinical study) (Japan) (4) Fukushima Medical University Tohoku University Hospital (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 30 Karolinska University Hospital Hemodialysis Ward [Research Field 2] Excerpt from Joint Research Reports [2014] Clinical and Experimental Nephrology Jointly authored paper with Tohoku Univ. The strong relation between post-hemodialysis blood methylglyoxal levels and posthemodialysis blood glucose concentration rise Environmental 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 patients Medical 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 Mice Cytotechnology 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 water BMC Proceedings Jointly authored paper with Kyushu Univ. The neuroprotective effects of electrolyzed reduced water and its model water containing molecular hydrogen and Pt nanoparticles BMC Proceedings Jointly authored paper with Kyushu Univ. Anti-diabetes effect of water containing hydrogen molecule and Pt nanoparticles Bioscience, 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 Medicine Intake 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 mellitus Bioscience, Biotechnology, and Biochemistry Jointly authored paper with Kyushu Univ. Extension of the lifespan of caenorhabditis elegans by electrolyzed reduced water Nephrology 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 31 Nephrology Dialysis Transplantation Jointly authored paper with National Taiwan Univ. Medical School Electrolyzed-reduced water dialysate improves T-cell damage in end-stage renal disease patients with chronic hemodialysis Free 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 syndrome Langmuir Jointly authored paper with Kyushu University Kinetic analysis of superoxide anion radical-scavenging and hydroxyl radical-scavenging activities of platinum nanoparticles Biological & 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 School Electrolyzed-reduced water reduced hemodialysis-induced erythrocyte impairment in endstage 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 School Reduced hemodialysis-induced oxidative stress in end-stage renal disease patients by electrolyzed reduced water Cytotechnology 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 [Corporate Overview] Corporate Overview Main business Manufacture and sale of household EHW system (medical device) Established June 12, 1982 Headquarters 22F, Herbis Ent, 2-2-22 Umeda, Kita-ku, Osaka, Japan Tel. +81-(0)6-6456-4600 Fax. +81-(0)6-6455-3951 Capital Shares 992,597,306 yen Listed 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 banks Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited 32 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 [Nihon Trim Group Companies] Water Healthcare Business Medical Business Trim Electric Machinery Co., Ltd. Trim Medical Holdings Inc. (Production factory; established in February 1990) ISO9001: 2008 ISO13485: 2003 (Holding company; established in May 2007) TrimGen Corporation Functional Water & Cell Analyzing Center Co., Ltd. (Development of genetic diagnostic kit; established in January 1999) ISO9001: 2008 (Measurement and scientific analysis of functional water; established in April 2004) StemCell Institute Inc. (Private cord blood bank; established in August 1999) Trim Life Support Co., Ltd. (After-sales services; established in February 2012) Others Overseas Business Trim Medical Institute Co., Ltd. (Contract measurements of glycolytic metabolites and sales of electrolyzed water hemodialysis system; established in December 2007) 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) 33 Trim Electric Machinery (Nankoku city, Kochi prefecture: completed in 2002)