advancing to a new stage of growth · 2014-01-15 · advancing to a new stage of growth g, october...
TRANSCRIPT
Results of Operations for the First Half of the Fiscal Year Ending March 31, 2014
Advancing to a New Stage of Growth
g ,
October 30, 2013
Th i f i f il bl i hi i l h C ’ j d f h i d h f d d
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. The Business Goals of the Nihon Trim Group Page 3p
2. Water Healthcare Business
g
Pages 4 ‐ 10
3. Medical Business Pages 11 ‐ 14
4. Business Performance, FY3/14 Plan, Indices, etc.
5 Supplementary Materials
Pages 15 ‐ 22
Pages 23 ‐ 345. Supplementary Materials Pages 23 ‐ 34
2
The Business Goals of the Nihon Trim Group
Use highly functional water
Help the people of Japan lead healthy lives
Become an important partner for health care, agriculture and industry sectors
Utilize technologies created in Japan
Today : A water health care company using electrolyzed hydrogen water (EHW)
Objective : An international total health care company based in Japan
Aiming for good health and a long life
Prediction TreatmentPrevention・MGO measurement (TMI)
M t t d d t ti kit
・ Electrolyzed hydrogen water (EHW)(drinking EHW system)
・ Electrolyzed water hemodialysis (EW‐HD system)
・Mutated gene detection kits(TRIMGEN)
(drinking EHW system)
・Reduced Vegetables (EHW system for vegetables/functional crops)
・ EHW (drinking EHW system)
・Cord blood bank (StemCell Institute)
3
Water Healthcare Business
4
Today, people want water with both “quantity” and “quality” (functions)
Realization of a Water Health Care Society
Health care: Prevention to reduce treatment and nursing home care
Lower health care expenses
Goal is to sell 3 million unitsnote1 of the EHW System1. Benefit of household medical devices: Improve condition of stomach and intestines
2. (a) Improves health (b) Low costnote2 (3) Ecology
1. Replacement cartridges: Purification cartridge sales of ¥20 billion/year (assuming a 70% replacement ratio)
2. Global expansion by using the “functional water business,” a technology that originated in Japan
D E Others
Market Share of Water Conditioners (End‐2011)
Medium‐ to long‐term initiatives for realizing a water health care society
1. Demonstrate effectiveness regarding lifestyle diseases (27.1% of adults have diabetes (including preliminary stage)note3)
2. Strengthen promotional activities (word‐of‐mouth) to raise awareness and ratio of purchase decisions
53.7%A
B
C
Nihon Trim
3. Expand operations by opening more office locations and increasing the workforce
4. Develop next‐generation products
5. Establish collaborative frameworks encompassing the industrial, public and academic sectors
Source: Yano Research Institute “2012 White Paper on Water Purifiers/Water Conditioners”
5
Note 1: Assumes 20% penetration rate for the industry and a 30% market share for Nihon Trim; current number of customers is about 500,000
Note 2: Approx. 7 yen per liter when using TRIM ION NEO for five years and replacing the cartridge once each year
Note 3: “2011 Japan Health and Nutrition Survey Report” of Ministry of Health, Labour and Welfare
To Raise Utilization to 3 million Units – EHW Drinking Experiment
E i t f b fit f d i ki EHW
(1) Blood triglyceride level (normal range: 45‐150mg/dl)
Among the individuals who used EHW 11 of the 12 people
Experiment for benefits of drinking EHW Joint research with Kitano Hospital at the Tazuke Kofukai Medical Research Institute
Individuals used EHW as ordinary drinking water for at least 60 days with the goal of drinking about 2,000ml every day.
600Blood triglyceride level
400Blood sugar level
(2) Blood sugar level (normal range: 70 ‐109mg/dl)
Among the individuals who used EHW all of the 11 people
Among the individuals who used EHW, 11 of the 12 people who had elevated blood triglyceride levels saw these levels decline and the level decreased to normal for two people.
200
300
400
500
600
glyc
erid
e le
vel (
mg/
dl)
150
200
250
300
350
400
ugar
leve
l (m
g/dl
)
Among the individuals who used EHW, all of the 11 people who had elevated blood sugar levels saw these levels decline and the level decreased to normal for eight people.
0
100
200
Bloo
d tr
ig
Before consumption
After consumption
0
50
100
Bloo
d s
Before consumption
After consumption
Lower systolic blood pressure Lower diastolic blood pressureP P
Comparison study of individuals who did and did not drink EHW
In a special medical checkup system, a comparison study of persons drinking EHW and those not drinking EHW was made using participants in the health care program for reducing high blood sugar level as metabolic syndrome patients
‐3.77
8
‐6
‐4
‐2
0
Program participants only
Program participants + EHW
‐3.82‐5
‐4
‐3
‐2
‐1
0
Program participants only
Program participants + EHW
Results
(1) Lower blood pressure
(2) Increased “good cholesterol”
program for reducing high blood sugar level as metabolic syndrome patients.
Increased “good cholesterol” Decreased “bad cholesterol”
‐9.04‐10
‐8
‐6.38‐7
‐6
‐5
0
7.3
6
8
10
Program participants only
Program participants + EHW
Program participants only
Program participants + EHW
6
(3) Decreased “bad cholesterol”
This research is currently in the verification phase and the data shown here are pilot figures showing that the desired effect may be achieved. These figures are not a guarantee of effectiveness.
Program participants only n=64Program participants + EHW n=24
‐12.4
‐16.38‐20
‐15
‐103.85
0
2
4
6
Research Papers Concerning Anti‐diabetes Effect
(1) Cytotechnology (Jointly authored paper with Graduate School of Kyushu University in 2003)
“Protective mechanism of reduced water against alloxan‐induced pancreatic β‐cell damage: scavenging effect against reactive oxygen species”
(Abstract)(Abstract)
…These results suggest that RW protects pancreatic ß ‐cells from alloxan ‐induced cell damage by preventing alloxan‐derived ROS generation. RW may be useful in preventing alloxan‐induced type 1‐diabetes mellitus.
(2) Cytotechnology (Jointly authored paper with Kyushu University in 2010)
“Suppressive effects of electrolyzed reduced water on alloxan‐induced apoptosis and type 1 diabetes mellitus”
(Abstract)
Th l h l l d d d i f i β ll d h
(3) BMC Proceedings (Jointly authored paper with Kyushu University in 2011)
…These results suggest that electrolyzed reduced water can prevent apoptosis of pancreatic β‐cells and the development of symptoms in type 1 diabetes model mice by alleviating the alloxan‐derived generation of reactive oxygen species.
“Anti‐diabetes effect of water containing hydrogen molecule and Pt nanoparticles”
(Abstract)
…In the groups of H2, Pt NPs and their combined use groups, blood sugar levels and impaired sugar tolerance of type 2 diabetes model mouse (KK‐Ay) were significantly improved, suggesting that H2, Pt NPs and H are redox regulation factors in animal cells.
7
Official sites on Facebook, Twitter and Youtube November 2012
To Raise Utilization to 3 million Units – Promotional Activities (SNS, events, TV programs)
Official sites on Facebook, Twitter and YoutubeSet up staff blog pages “Reduced Vegetables and Healthy Recipes” Food Seminar
A food education seminar about staying healthy by consuming Reduced Vegetables® and water, which have many components that are good for the body.
May 2013“Father‐Child Cooking Class” for Mother’s Day
body.
Fathers and children prepared meals together for mothers in an event held with the Shokuryo G k i (F d A d )
Started October 2013
August 2013Gutta Ri‐Man (“Exhausted business people”) Rescue Project
This project supports the heat stroke prevention project of the
Gakuin (Food Academy).
A nationwide TV program for making lunch box meals with the faces of local characters(Started October 8; broadcast on CS Sky A Sports+, sponsored solely by Nihon Trim)
“Project Sugoi‐ne! Go‐Tochi Kyaraben!” TV Program Ministry of the Environment and Ministry of Health, Labour and Welfare. Nihon Trim set up a water distribution and relaxation space in Tokyo’s Marunouchi district to provide electrolyzed hydrogen water and shaved ice at no cost to office and other workers.
8
“Bary‐san” from the city of Imabari won the 2012 Grand Prix
Cool Off Award 2013Received Award for Excellence
R&D
Electrolyzed Water Hemodialysis
1. R&D project has started with subsidies of about ¥230 million(The Japan Science and Technology Agency and the Fukushima Prefecture Medical and Welfare Equipment Development Project)
2. Selected as one of the sessions for next‐generation dialysis treatment methods at the Japanese Society for Dialysis Therapy (Fukuoka, June 2013)
3. Clinical research with Karolinska Institute (Sweden) is currently underway
Sales and Promotions
1. Electrolyzed water hemodialysis system for many people; sold two units (to be delivered in end‐Oct and end‐Dec); increased from current 12 hospitals/103 beds to 14 hospitals/more than 200 beds
2 A sales agent agreement has been signed with Nikkiso Co Ltd to promote sales promotion activities2. A sales agent agreement has been signed with Nikkiso Co., Ltd. to promote sales promotion activities
Exhibition booth at the 58th Japanese Society for Dialysis Therapy
Electrolyzed water hemodialysis system for individual use
Electrolyzed water hemodialysis system for many people
9
A revolutionary treatment method that targets the high volume of water used for dialysis (patent pending)Using a dialysis fluid that includes hydrogen improves patients’ quality of life by reducing oxidation stress, inflammations and side effects.
Reduced Vegetables (Trademark)
1. Established regional alliances and cooperative frameworks that include industrial, academic and public‐sector partners
h f ( f d h h d l dd d) k k ( d d b k )Kochi Prefecture (confirmed higher revenues and value added), JA Nankoku City (production, distribution, marketing)
Kochi University Faculty of Agriculture (identified physical properties and mechanism of water; confirmed anti‐oxidant properties of crops)
2. Signed an industrial promotion agreement to cooperate with the City of Nankoku in Kochi prefecture and made an investment in Nishijima Flower Garden Co Ltd It conducts demonstration cultivation of Reduced Vegetablesinvestment in Nishijima Flower Garden Co., Ltd. It conducts demonstration cultivation of Reduced Vegetables
3. Reduced Vegetables were exhibited at Kochi Kodawari Produce Market in Tokyo 2013 and generated substantial interest among department store buyers and other retailers
EHW Tap water
Leaf length (cm) 35.4 32.5
EHW grows plants faster and increases yields
EHW area
g ( )
Root length (cm) 10.4 9.1
No. of leaves 8.5 7.6
Yield (g) 290 230
Tap water comparison
126% 100%comparison
EHW Tap water
Dietary fiber (mg/100g) 2000 1900
B‐carotene (mg/100g) 4000 3600
High volume of anti‐oxidants (vitamin C, B‐carotene) with EHW
October 9, 2013 Kochi Kodawari Produce Market in Tokyo 2013
EHW allows growing highly functional plants with higher yields and large amounts of anti‐oxidants
Tap water areaVitamin C (mg/100g) 16 14
Analysis by Japan Food Hygiene Association
g g g y p g y g
A grower‐processor‐distributor framework has been established by using alliances with an agricultural products company and a large retailer
Used at plant factories 10
Medical Business
11
Genetic Diagnosis (TrimGen)
1. Rapid growth: Results for the first‐half of FY2013: net sales US$3.73 million; operating income US$3.06 million
(Reference: FY2012 net sales US$1.56 million; operating income US$1.06 million)
2. Office was opened in Osaka for the purposes of building a stronger base for sustained growth, expanding into the Japanese market, and listing its stock in Japan in the near future.
→SG&A ratio increased but this will not last long
Effectiveness of Pharmaceuticals (%)Asthma 25‐60Cancer 0 30
3. Developed new product with a clinical study company
Growth Forecasts for the Global Genetic Testing and Diagnostics Market2010: US$1.5 billion → 2016: US$4.0 billion → 2021: US$5.0‐25.0 billion
Cancer 0‐30Depression 60‐80
Diabetes 25‐50Peptic ulceration 30‐80Hyperlipidemia 25‐70Hypertension 30‐90
Prepared by Nihon Trim based on BM Silber in “Pharmacogenomics” Ed. by Kalow, Meyer, Tyndale and Dekker, 2001
Hypertension 30 90Migraine 40‐70
Osteoarthrosis/rheumatoid arthritis 50‐80Schizophrenia 25‐75
Use exclusive technologies for R&D, manufacturing and salesnote1 for genetic testing kits
U i di id li d t t t f d l ti i d t d id ff t l t f t t t
12
Use individualized treatments for drug selection in order to reduce side effects; lowers cost of treatment and risk of accidents involving treatment
Note 1: (1) Cancer genetic testing kit/Kras, Braf, EGFR, PIK3, etc. (2) Heart vessel genetic testing kit/CYP2D6, CYP2C19, Warfarin, etc.(3) DNA sample extraction kit (4) Testing service
Regenerative Medicine (1) (StemCell Institute)
1. Became a consolidated subsidiary in September 2013
2. Results of operations and financial condition for the last three years
Fiscal years ended June 2010 June 2011 June 2012
Net sales 604 million yen 623 million yen 741 million yen
Operating income 59 million yen 58 million yen 165 million yen
Ordinary income 59 million yen 58 million yen 165 million yenOrdinary income 59 million yen 58 million yen 165 million yen
Net income 58 million yen 55 million yen 163 million yen
Net assets (20) million yen 35 million yen 199 million yen
Total assets 746 million yen 789 million yen 1,059 million yen
Net assets per share (3,211) yen 5,524 yen 31,127 yen
3. Start contributing to the consolidated earnings from the third quarter. Amortization of goodwill: approx. ¥34 million per year
4. Cord blood storage ratio for newbornsJapan (1 million): 0.3%, USA (3.8 million): 7%, South Korea (0.49 million): 12%, Taiwan (0.2 million): 5%*Numbers in parentheses are annual births
5 Clinical tests which are performed mainly outside Japan point to rising public awareness and importance of cord blood storage5. Clinical tests, which are performed mainly outside Japan, point to rising public awareness and importance of cord blood storage. Prospects for this business are therefore excellent.
The long‐term storage service of cord blood in anticipation of its use in regenerative medicine and
Cord blood bank
C d bl d t i l tit f t ll hi h d l i t t f ll i th b d Th ll b f l i
The long term storage service of cord blood in anticipation of its use in regenerative medicine and cellular therapy and for treating future diseasesJapan’s largest private cord blood bank (30,048 individuals as of October 2013)
13
Cord blood contains a large quantity of stem cells, which can develop into many types of cells in the body. These cells may be useful in regenerative medicine and cellular therapy. Cord blood is stored for the purpose of enabling the use of stem cells in the future in the event that an infant or family member requires a treatment. There are private cord blood and public‐sector cord blood banks in Japan. At the private banks, cord blood is stored for a fee and used by the donor or a brother or sister. At the public‐sector banks, cord blood is stored at no charge but unable to be used by the donor.
Regenerative Medicine (2) (StemCell Institute)Uses of Cord Blood
1. For the treatment of diseases [hematopoietic stem cell transplant]
Red blood cell
L h ll
Collection
Leukemia (brothers‐sisters)note 1 note 2 / Aplastic anemia (donor, brothers‐sisters)note 3
Congenital immunodeficiency (brothers‐sisters)note 3 / Inborn error of metabolism (brothers‐sisters)note 3 / Lymphoma malignum (brothers‐sisters), and others
2. For diseases at the clinical trial stage (overseas) [regenerative medicine and cellular therapy]
C b l l note 4 / H i i h i h l th / T ti b i i j /
Cord blood stem cell
Hematopoieticstem cell
Mesenchymal stem cell
Lymphocyte cell
White blood cell
Blood platelet
Nerve cellVascular endothelial cellBone cellHeart muscle cell
Separation
Cerebral palsy note 4 / 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
Others (stem cell, etc.)/ / g g ( , ),
Note 1: For sibling transplants to treat leukemia, the success rate is high due to the low immune response to transplanted cells. Survival rates are reported to be high.
Note 2: For leukemia caused by abnormal chromosomes after birth, the individual’s own cord blood can be used.
Note 3: For congenital diseases, the individual’s own cord blood cannot be used.
Note 4 Clinical research has started in Japan
Cell Storage Method
Note 4: Clinical research has started in Japan.
14
StorageCombine with separation agent in a centrifuge
Cell collection1) Plasma2) Layer with many stem cells3) Ficoll (separation agent)4) Red blood cells
Place in ampules for frozen storage
Separate only the layer with many stem cells for collection and cleansing
Business Performance, FY3/14 Plan, I diIndices, etc.
15
1H FY3/14 Topics
Upward revision of fiscal year forecasts
Conduct of 2‐for‐1 stock split and change in the number of trading unit from 50 shares 100 shares
Increase in dividend forecast from 35 yen to 50 yen
Retirement of 300,000 shares of treasury stock
Drinking waterW
ater
EHW systems: Record first‐half salesThe head office was moved to Herbis Ent in the Umeda district of Kita‐ku, Osaka, and three sales offices were established.
Electrolyzed water hemodialysis: R&D has started with subsidies of about ¥230 million from The Japan Science and Technology Agency etc
Medical
Agriculture
r Healthcare
Japan Science and Technology Agency, etc. Electrolyzed water hemodialysis RO systems for many people will be delivered in end‐Oct and end‐Dec
Signed an industrial promotion agreement to cooperate with the City of Nankoku in Kochi prefecture and made an investment in Nishijima Flower Garden Co., Ltd. Demonstration cultivation of Reduced Vegetables® has started
Overseas
Others
Business
The Federation of Diet Members to Promote the Use of Highly Functional Water was established
of Reduced Vegetables® has started
Steady growth of sales in Indonesia and China
Others
Medica
Genetic diagnosis
Rapid growth in earningsAn office was opened in Osaka for the purposes of building a stronger base of operations, starting full‐scale activities in Japan and to list its stock in Japan
on May 22, 2013
16
l Business
Regenerative medicine
p p
StemCell Institute Inc., Japan’s largest private cord blood bank, became a consolidated subsidiary
1H FY3/14 Summary of Consolidated Income Statements
(Millions of yen) 1H FY3/13 1H FY3/14 YoY change
Net sales 5,567 6,615 18.8%
Cost of sales 1,243 1,444 16.2%
Gross profit 4,324 5,171 19.6%
SG&A expenses 3,077 3,440 11.8%
Operating income 1,247 1,730 38.8%p g , ,
Non‐operating income 69 226 223.0%
Non‐operating expenses 15 16 6.6%
O di i 1 301 1 940 49 1%Ordinary income 1,301 1,940 49.1%
Extraordinary income ‐ ‐ ‐
Extraordinary loss ‐ ‐ ‐
Net income 791 1,390 75.7%
Net income per share (Yen) 92.39 165.66 79.3%
Net assets per share (Yen) 1,465.39 1,626.19 11.0%note
17Note: The Company conducted a 2‐for‐1 common stock split on October 1, 2013. Net income per share and net assets per share have
been calculated as if this stock split had taken place at the beginning of the fiscal year ended March 31, 2013.
Note: As of the end of March 2013
1H FY3/14 Results by Division
1H FY3/13 1H FY3/14 YoY change
DS Division(workplace sales)
2,321 2,539 9.4%
HS Division
(Millions of yen)
HS Division(installation and referral sales)
705 870 23.4%
SS Division(store event sales)
296 327 10.5%
MS Division365 455 24 7%
Flow‐typebusiness
(OEM and wholesale sales)365 455 24.7%
Operations Division (after‐sales services)
145 144 ‐1.0%
3,831 4,335 13.1%EHW systems sales, total
Stock‐typebusiness
Cartridges 1,377 1,511 9.8%
Others 179 239 33.4%
5,387 6,085 13.0%
180 530 195.0%
5 567 6 615 18 8%
Sales at subsidiaries
C lid t d l
Total sales (non‐consolidated)
18
5,567 6,615 18.8%Consolidated sales
FY3/14 Summary of Upwardly‐revised Forecast (consolidated)
(Millions of yen) FY3/13 FY3/14 YoY comparison( y ) / / p
Net sales 10,690 13,000 21.6%
Cost of sales 2,356 2,943 24.9%
Gross profit 8,333 10,057 20.7%
SG&A expenses 6 148 7 107 15 6%SG&A expenses 6,148 7,107 15.6%
Operating income 2,184 2,950 35.1%
Non‐operating income 290 284 ‐2.1%
Non‐operating expenses 34 34 0.0%
Ordinary income 2,440 3,200 31.1%
Extraordinary income ‐ ‐ ‐
Extraordinary loss ‐ ‐ ‐
Net income 1,526 2,240 46.8%
Net income per share (Yen) 179.31 266.94 48.9%
Note 1: The Company conducted a 2‐for‐1 common stock split on October 1, 2013. Net income per share has been calculated as if this stock split had taken place at the beginning of the fiscal year ended March 31, 2013.
Note 2: The Company has upwardly revised its FY3/14 consolidated forecast on October 24, 2013.
Net sales 1Q Budget: ¥13.0 billion50.9% (¥6.61 billion)2Q
Progress ratio on revised forecast (1H)
190% 50% 100%
Ordinaryincome
Budget: ¥3.2 billion60.6% (¥1.94 billion)1Q 2Q
Management Efficiency
Ordinary income to net sales
10 9%
15.4%
17.6%20.9% 22.8%
24.6%
15.0%
20.0%
25.0%
30.0% Ordinary income to net sales
10.9%
0.0%
5.0%
10.0%
FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 (plan)
12 9% 14%400
Listed‐company average ROE: 4.9%; Listed‐company average ROA: 1.8%(Prepared by Nihon Trim based on statistics provided on the Tokyo Stock Exchange website)
(Yen)
*ROE (Net income/Owners’ equity)ROE/ROA
3 85.9%
8.2%10.1%
12.9%
8.0%10.2%
8%
10%
12%
%
200
250
300
350*ROE (Net income/Owners’ equity)
ROA (Net income/Total assets)
51128
192256
358
2662.4%
1.9%
4.6%
6.4%
0%
2%
4%
6%
0
50
100
150
FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 (plan)
Net income per share ROE ROA
20Note: The Company conducted a 2‐for‐1 common stock split on October 1, 2013. Net income per share forecast for the fiscal year ending March 31, 2014 has been adjusted to reflect the stock split.
A Healthy Financial Condition (Consolidated)
(Millions of yen) As of Mar. 31. 2013 As of Sep. 30, 2013
Total assets 15,684 18,493
* Listed‐company average: 36 2%
Net assets 12,477 14,183
Equity ratio 78.6% 74.8%
Declined 4.9% due to the consolidation of StemCell Institute as a consolidated subsidiary
For StemCell Institute, 10 years of
(Millions of yen) As of Mar 31 2013 As of Sep 30 2013
Listed company average: 36.2%(Refer to the aggregate summary of financial
results for the fiscal year ended March 31,
2013 on the Tokyo Stock Exchange website)
storage fees are received when a contract is signed. As a result, unearned revenue and long‐term unearned revenue increase, which causes the equity ratio to decrease. However, liabilities include no (Millions of yen) As of Mar. 31, 2013 As of Sep. 30, 2013
Current assets 10,612 12,747
A: Cash and deposits 6,224 7,149
obligations that must be repaid.
B: Account receivable‐installment
2,460 2,806
A+B: Total 8,684 9,955 Percentage of current assets: 78.1%
Noncurrent assets 5,072 5,746
Total assets 15,684 18,493 21
Initiatives to Enhance Shareholder Value
60
70Commemorative dividend of 10 yen
*2‐for‐1 stock split was conducted on October 1, 2013
Increase of 15 yen
Trend in dividend (Yen)
50 50 50
30
35
FY3/09 FY3/11FY3/10 FY3/12 FY3/13 FY3/14 Fct.
*Retirement of 300,000 shares of treasury stock on September 26, 2013
Note: Year‐end dividends per share for the fiscal years ended March 2013 and earlier are the actual amounts before the stock split. Year‐end dividend per share forecast for the fiscal year ending March 31, 2014 is the amount after the stock split.
22
Dividend policy: Placing importance on paying stable dividends, while payout ratio to improve gradually
Shareholder special benefit plan: Discount coupon for Nihon Trim products
Supplementary Materials
23
EHW Systems
“Health” Effect/efficacy: Improved gastrointestinal conditions ○ h d f
“ECO Friendly”Eco switch provided to save power
○ Eases stomach discomfort○ Assists in stomach and intestinal functions and in bowel movements
Standard price in Japan (with tax): 172,200 yen (Medical equipment manufacture
“Stylish”A smart, compact design that can be installed just about anywhere
p pDischarge water adjustment to save water resources
( q pcertification number: 221AGBZX00290000)
Microcarbon CartridgesRemoves 13 materials specified by JIS!(Removal with only microcarbon is a first in the industry!) Uses environmentally friendly coconut husks Dibromochloromethane
Used cartridges are collected and recycled at no charge!
24
The Anti‐Oxidant Properties of Electrolyzed Hydrogen Water
Mechanism for direct effect
Mechanism for indirect effect
Hydrogen
Platinum nano‐colloid
Electrolyzation
Atomic hydrogen
ElectrolyzationHydrogen
molecules (H2)
Stimulation
Nrf2
Water (H2O)
PtElectrolyzation
Water (H2O)
Bonding
Nrf2Source of mechanism for creating anti‐oxidant oxygen in the body
Increases amount of anti‐oxidant oxygenPt+Pt
SOD
Reactive oxygen Water (H2O)Catalase
GlutathionePeroxidase
Pt
Reactive oxygen
* Nihon Trim’s findings are academic proof and are not a guarantee or evidence of product performance or effectiveness regarding any specific disease.
25
An SPA Model for EHW Systems SPA: Specialty store retailer of Private label ApparelA highly vertically integrated sales format that integrates all steps from production to retail sales
Installation / Follow‐up Services
SalesR&D / Manufacturing
Manufacturing SubsidiaryManufacturing Subsidiary Sales CompanySales Company
(Production Factory)“ISO9001:2008” “ISO13485:2003”
Installation SubsidiaryInstallation Subsidiary
25 sites, approx. 200 sales employees Approx. 0.5 million household customers
Manufacturing SubsidiaryManufacturing Subsidiary
Trim Electric Machinery Co., Ltd.Trim Electric Machinery Co., Ltd.
Sales CompanySales Company
Nihon Trim Co., Ltd.Nihon Trim Co., Ltd.
Installation SubsidiaryInstallation Subsidiary
Trim Life Support Co., Ltd.Trim Life Support Co., Ltd.
d b d l h h fd b d l h h f
26
An integrated business model that covers everything from An integrated business model that covers everything from manufacturing to sales and customer servicemanufacturing to sales and customer service
Joint Research with Research Institutes at Home and Abroad
[Basic Research Field][ ]
(2) School of Agriculture, Kyushu University
(1) Karolinska Institute (Sweden) Department of Neuroscience
[Medical/Preventive Medical Care Field]
[Tohoku University Hospital]Japan
[TMI Laboratory]
(5) Department of Surgery Kochi Medical School
(4) School of Medical Science, Tohoku University/Kashima Hospital (Fukushima)/Nikko Memorial Hospital (Hokkaido), etc.
(3) Fukushima Medical University
(6) Clinical Laboratory Sciences and Medical Biotechnology, National Taiwan University (Taiwan)
(5) Department of Surgery, Kochi Medical School
Overseas
National Taiwan University (Taiwan)
[Agricultural Production Field](8) Faculty of Agriculture and Agricultural Science Program
(7) Karolinska University Hospital (Sweden)
(9) Faculty of Agriculture, Kyoto Prefectural University/ Kyoto Prefectural University of Medicine
(8) Faculty of Agriculture and Agricultural Science Program, Kochi University
[Karolinska University Hospital Hemodialysis Ward]
27
List of Research Papers
1. PLoS ONEJointly authored paper with Karolinska Institute and Kyushu University (2012)
12. Free Radical ResearchJointly authored paper with Tohoku Univ. School of Medicine (2010)“Methylglyoxal augments intracellular oxidative stress in human aortic endothelial cells ”Jointly authored paper with Karolinska Institute and Kyushu University (2012)
“Molecular Hydrogen Reduces LPS‐Induced Neuroinflammation and Promotes Recovery from Sickness Behaviour in Mice ”
2. Cytotechnology 64Jointly authored paper with Kyushu University (2012)“Electrolyzed reduced water scavenges active oxygen species and suppresses cancer cell invasion”
d d d h l
Methylglyoxal augments intracellular oxidative stress in human aortic endothelial cells
13. Nephron Clinical PracticeJointly authored paper with Tohoku Univ. School of Medicine (2009)“Biological effect of electrolyzed water in hemodialysis”
14. Vascular MedicinJointly authored paper with Tohoku Univ. School of Medicine (2008)“Investigation of participation of methylglyoxal on cardiorenal syndrome”
3. Trends in Food Science and Technology Jointly authored paper with Kyushu University (2011) “Advanced research on the health benefit of reduced water”
4. BMC ProceedingsJointly authored paper with Kyushu University (2011)“The neuroprotective effects of electrolyzed reduced water and its model water containing molecular hydrogen and Pt nanoparticles”
g p p y g y y
15. LangmuirJointly authored paper with Kyushu University (2008)“Kinetic analysis of superoxide anion radical‐scavenging and hydroxyl radical‐scavenging activities of platinum nanoparticles”
16. Biological&Pharmaceutical BulltinJointly authored paper with Kyushu University (2008)
molecular hydrogen and Pt nanoparticles
5. BMC ProceedingsJointly authored paper with Kyushu University (2011)“Anti‐diabetes effect of water containing hydrogen molecule and Pt nanoparticles”
6. Bioscience, Biotechnology, and BiochemistryJointly authored paper with Kyushu University (2011)“Mechanism of the lifespan extension of caenorhabditis elegans by electrolyzed reduced water”
“Inhibitory effect of electrolyzed reduced water on tumor angiogenesis ”
17. Hemodialysis InternationalJointly authored paper with Tohoku Univ. School of Medicine (2007)“Less‐oxidative hemodialysis solution rendered by cathode‐side application of electrolyzed water”
18. Kidney International Vol.70J i tl th d ith N ti l T i U i M di l S h l (2006)p g y y
7. Nephrology Dialysis TransplantationJointly authored paper with Tohoku Univ. School of Medicine (2010)“Intake of water with high levels of dissolved hydrogen produced by electrolysis suppresses ischemia‐induced cardio‐renal injury in Dahl salt sensitive rats”
8. Cytotechnology Jointly authored paper with Kyushu University (2010)
Jointly authored paper with National Taiwan Univ. Medical School (2006)“Electrolyzed‐reduced water reduced hemodialysis‐induced erythrocyte impairment in end‐stage renal disease patients”
19. Cytotechnology 2005Jointly authored paper with Kyushu University (2005)“Electrolyzed reduced water supplemented with platinum nanoparticles suppresses promotion of two‐stage cell transformation ”
“Suppresive effects of electrolyzed reduced water on alloxan‐induced apoptosis and type 1 diabetes Mellitus”
9. Bioscience, Biotechnology, and BiochemistryJointly authored paper with Kyushu University (2010)“Extension of the lifespan of caenorhabditis elegans by electrolyzed reduced water”
10. Nephrology Dialysis Transplantation J i tl th d ith T h k U i S h l f M di i (2010)
20. Kidney International 2003Jointly authored paper with National Taiwan Univ. Medical School (2003)“Reduced hemodialysis‐induced oxidative stress in end‐stage renal disease patients by electrolyzed reduced water”
21. Cytotechnology 2003 Jointly authored paper with Graduate School of Kyushu University (2003)“P t ti h i f d d t i t ll i d d ti β llJointly authored paper with Tohoku Univ. School of Medicine (2010)
“A novel bioactive hemodialysis system using dissolved dihydrogen(H2) produced by water electrolysis: A clinical trial”
11. Nephrology Dialysis TransplantationJointly authored paper with National Taiwan Univ. Medical School (2010)“Electrolyzed‐reduced water dialysate improves T‐cell damage in end‐stage renal disease patients with chronic haemodialysis”
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“Protective mechanism of reduced water against alloxan‐induced pancreatic β‐cell damage: scavenging effect against reactive oxygen species”
22. BBRCJointly authored paper with Graduate School of Kyushu University (1997)“Electrolyzed‐reduced water scavenges active oxygen species and protects DNA from oxidative damage ” ,others
Trend in Consolidated Results of Operations
Ad i t t f th
13,000
15,000Mar. 2004Listed on TSE 1st Section
Mar. 2010
Advancing to a new stage of growth
8,8089,762
10,1019,650 9,572
8,7497,963 8,232
8,8899,617
10,690
9,000
12,000 Feb. 2003Listed on TSE 2nd Section
Nov. 2000Registered on JASDAQ
Launched TRIM ION NEO
4,5735,237
6,418
,
6,000
JASDAQ
694 9341,408
1,922 2,213 2,4061,783 1,488
929 866 1,265 1,5612,012
2,4403,200
3,000
0
Net sales Ordinary income
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October 24, 2013
Upward revision to earnings forecast(Net sales were raised from ¥12 billion to ¥13 billion, ordinary income ¥2.7 billion to ¥3.2 billion)
Overseas Business 1: Indonesia (bottling business)
Participating in a joint business venture with a local conglomerate called the Sinarmas GroupParticipating in a joint business venture with a local conglomerate called the Sinarmas Group
Profitable for two consecutive years
Japanese embassy, consulate general, JAL Narita‐Jakarta, hotels, Starbucks Coffee, Seven‐Eleven, etc.
Exports to Singapore
Environmental protection activities through an alliance with Taman Nasional Gunung Gede PangrangoEnvironmental protection activities through an alliance with Taman Nasional Gunung Gede Pangrango
(National Park)
Sustainable growth backed by an expanding middle‐class in a country with the world’s fourth‐largest population
and a growing economy
Plan to add another production line that incorporates even more advanced technologies
[Local brand “Prestine”]
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Overseas Business 2: China/Taiwan (EHW systems sales)
Interest in good health is climbing along with the increase in highly affluent people and older people; goals are to raise awareness of EHW systems and enlarge sales channels
Operations are still small but are growing steadily
China:
Using the sales channels of the alliance partner, a distributor of medical products, and branding through joint research with Taiwan University with the aim of enlarging sales channels for EHW systems
Increasing the number of sales agents in Taiwan
Taiwan:
Increasing the number of sales agents in Taiwan
[Taiwan showroom][Guangzhou Trim website] [Taiwan showroom]
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[Guangzhou Trim website]
Corporate Social Responsibility
● Recycling of used water purification cartridges
● Sports: Holds Trim Cup and other events
● Kochi Business Challenge Fund (the Nihon Trim Fund) Provide support for start‐up businesses (formed with a donation of ¥100 million)
(1) Sponsored by the Japan Futsal Federation: Trim Cup 2013 5th National Women‘s Invitational Futsal Tournament
(2) Main sponsor of The Kochi Fighting Dogs(3) Baseball Challenge League sponsor(4) Official water contract with Orix Buffaloes
● Sports: Holds Trim Cup and other events
(4) Official water contract with Orix Buffaloes(5) Official supplier of Biwako University and Kansai students long‐distance relay race* Supplied to 10 teams in the J League, and approx. 100 sport‐related organizations including
professional teams, corporations, universities, and high schools.
● Relay for Life JapanSupport events for cancer patients and their families are sponsored by the Japan Cancer Society. We provide “I'm Fine” as an official supplier.
● Relay for Life Japan
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● The Trim Life Sciences AwardWinners that are selected from applications received from the public receive grants to support outstanding research projects involving the life sciences.
Corporate Overview
Main businessManufacture and sale of household EHW system(healthcare device)
Established June 12, 1982
Headquarters22F, Herbis Ent, 2‐2‐22 Umeda, Chuo‐ku, Osaka 530‐0001
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 3,334 (as of the end of September 2013)
Employees 443 (as of the end of September 2013)
HERBIS ENT, where the Company’s headquarters are located
Member of Councillors, Nippon KeidanrenMember, Kansai Economic FederationMember, Osaka Chamber of Commerce and IndustryMember, Japan Hospital AssociationDi F i l W F d i
President Shinkatsu Morisawa
Main banksSumitomo Mitsui Banking Corporation,
Sumitomo Mitsui Trust Bank, LimitedDirector, Functional Water Foundation
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Towards Corporate Group Active in Medical Field Worldwide
Medical and Genetic BusinessW t d H lth B i Medical and Genetic Business
Trim Electric Machinery Co., Ltd.(Production factory; established in February 1990)ISO9001: 2008 ISO13485: 2003
Water and Health care Business
TrimGen Corporation(Development of genetic diagnostic kit; established in January 1999)
ISO9001: 2008 ISO13485: 2003
Functional Water & Cell Analyzing Center Co., Ltd.(Measurement and scientific analysis of functional water;
t bli h d i A il 2004)
ISO9001: 2008
TrimGen Holdings Co., Ltd.(Holding company; established in May 2007)
Trim Medical Institute Co Ltdestablished in April 2004)
Trim Life Support Co., Ltd.(After‐sales services; established in February 2012)Others
Trim Medical Institute Co., Ltd.(Contract measurements of glycolytic metabolites and sales of electrolyzed water hemodialysis system; established in December 2007)
StemCell Institute Inc
TRIM (Guangzhou) Water & Health Co., Ltd.(Based in China; established in October 2005)
Overseas BusinessStemCell Institute Inc.(Private cord blood bank; established in August 1999)
PT SUPER WAHANA TEHNO(Based in Indonesia; invested in October 2006)ISO:22000:2005
Trim Electric Machinery(Nankoku city, Kochi prefecture: completed in 2002)
MEDFIRST TRIM CO., LTD.(Based in Taiwan; established in April 2012)
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