-
IR Contact: Business Strategy & Management Dept. (TEL:
+81-(0)6-6456-4633 E-mail: [email protected])
April 26, 2018
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
Fiscal Year Ended March 31, 2018
-
1. Overview of the Nihon Trim Group Business Pages 3 - 19
2. Business Performance, Forecast, Indices, etc. Pages 20 -
26
3. Supplementary Materials Pages 27 - 34
[Contents]
2
-
With an entrepreneurial spirit in mind,the Trim Group is
aspiring
to become a global group of medical companies!
Water Healthcare Business
Drinking waterElectrolyzed hydrogen water
(EHW) apparatus
OverseasEHW apparatus (China and Taiwan)Bottled water
(Indonesia)
AgricultureKangen Vegetable
MedicalElectrolyzed water hemodialysis Hospital operation
(China)
Advanced medical careCord blood bankDevelopment of Japanese cell
medicinesRegenerative/reproductive medicine-related equipment
Medical / Advanced Medical Care Business
3
-
1. EHW apparatus1) Started a joint research (on
cells/animals/human) with RIKEN (the Institute of Physical and
Chemical Research).
2) Declining sales efficiency hit the bottom. Back on a recovery
trend from the second half. Direct sales divisions have seen a
year-on-year increase in sales.
3) Launched a new product, "TRIM ION GRACE“ with a unit selling
price higher than the conventional models.
4) Focused on promoting Health and Productivity Management with
a full-scale introduction of the B-to-B sales approach on top of
the ongoing B-to-C sales approach.
5) Nihon Trim was certified as Excellent Enterprise for Health
and Productivity Management (White 500) for the second consecutive
year.
6) Recognized provision for loss on contract of 275 million yen
in manufacturing cost.
Figures in parenthesis represent percentage to earnings
forecast.Operating profit: 1,882 million yen (100.1%); Ordinary
profit: 1,957 million yen (100.4%).
2. Agriculture1) In the experimental cultivation at Noshiro City
Agricultural Technology Center in Akita Prefecture, the yield of
tomatoes
increased to 1.8 times when compared to tap water or
groundwater. The news posted on the top page of the Hokuu Shimpo
newspaper.
2) Participated in exhibition at JFSS (Jakarta Food Security
Summit).
3. Medical1) Published a joint paper with Tohoku University on
Scientific Reports, a British scientific online journal issued by
the Nature
Publishing Group.
2) Sales of electrolyzed water hemodialysis system: 44 million
yen.
3) Hospital operation in China: Opening ceremony is scheduled on
May 9, 2018.
4. Advanced medical care1) Established Human Life CORD Japan
Inc. in April 2017 and formed a capital alliance with STREX Inc. in
May 2017 to
strengthening the business foundation.
2) StemCell Institute Inc. filed a “notification of umbilical
cord blood banking business” with the Ministry of Health, Labour
and Welfare. It was posted on the Ministry’s website. 4
[FY3/18 - Major Topics]Major Topics in FY3/18EHW apparatus
business on a recovery trend. The Group operations making steady
progress.
-
1. Shifting to the B-to-B oriented package sales with “Health
and Productivity Management” as a key concept
2. Further elucidation of the effects of EHW
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
5
[FY3/19]Trim Group’s Challenges in FY3/19
Plan to make proactive up-front investments for making a leap
into a medical company
-
Medical equipment manufacture certification number:
229AGBZX00069000
6
[EHW Apparatus]The only water treatment device certified by the
government for its effect
[Drinking Water / EHW]
1. Home-use controlled medical deviceEffect of improving
gastrointestinal problems.
2. Benefits of EHW
1) Health benefit, 2) Low running cost, and
3) Eco-friendly
3. New product: TRIM ION GRACE
1) A medical device that can produce hydrogen rich water of up
to approx. 1,300 ppb (three times as rich as that produced by
conventional models)
2) Developed by applying technologies implemented in
electrolyzed water hemodialysis.
3) Percentage composition in direct sales: approx. 60%.
The new habit of water healthcare
From PET and gallon bottles to “EHW”Yano Research Institute
Ltd.
“Water Purifier and Filter Market 2017”
Company A 13.8%
Company B8.5%
Company C0.4%
Company D0.3%
Others
12.6%
Nihon Trim
64.5 %
-
1) EHW exerts about five times more intracellular reactive
oxygen species (ROS)-scavenging activity than bubbling hydrogen
water with the same dissolved hydrogen content (0.9 ppm)
2) Even after hydrogen was removed, EHW retains about 60% of its
ROS-scavenging activity while bubbling hydrogen water lost it.
(This activity is equivalent to about 3 times the activity of
hydrogen water.)
3) The results indicate that EHW contains an additional
intracellular antioxidative factor other than hydrogen (predicted
to be platinum nanoparticles).
Comparison of intracellular ROS content after treatment with
culture medium prepared with EHW or hydrogen water with the same
dissolved hydrogen concentration(Excerpt from the paper, partially
edited)
Changes in amount of intracellular ROS after removal of
dissolved hydrogen
7
[Research 1]Superiority of EHW to Bubbling Hydrogen Water
Joint paper published on the U.S. scientific journal "PLOS ONE -
12(2): e0171192 (2017)”A
mo
un
t o
f in
trac
ellu
lar
RO
S
Adding ROS (ROS-added water)
Removing hydrogenP
ure
wat
er
Pu
re w
ater
Pu
rifi
ed w
ater
Hyd
roge
n w
ater
(Pu
rifi
ed w
ater
+ H
2 )
Hyd
roge
n w
ater
(Pu
re w
ater
+ H
2 )
EHW
EHW EH
W
Hyd
roge
n w
ater
(Pu
re w
ater
+ H
2 )H
ydro
gen
wat
er(P
uri
fied
wat
er +
H2 )
10
%
Red
uct
ion
50
%
Red
uct
ion
50% Reduction
30% Reduction
Am
ou
nt
of
intr
acel
lula
r R
OS
-
[Health and Productivity Management site in Nihon Trim
website]
Proposal Based Sales of “Health and Productivity
Management”Fully introducing B-to-B sales approach
[Drinking Water / EHW]
[Certificate for Excellent Enterprise for Health and
Productivity Management (White 500)]
1. Proposed “Health and Productivity Management” to corporate
customers
1) Proposed corporations for lump-sum purchase• A major auto
dealer (172 and 66 units in Tokyo, 77 units in Chiba,
44 units in Hyogo, etc.)• A housing company (41 units), etc.
2) Installation to companies followed by sales presentation for
individuals
2. Certified as Excellent Enterprise for Health and Productivity
Management 2018 (White 500) for the second consecutive year
3. Collaborated with health insurance associations and major
companies in other industries
8[EHW apparatus installed in
office kitchinette]
-
[Drinking Water / EHW] Sales Efficiency in Workplace Sales
Hit the bottom and now on a recovery trend
0
0.5
1
1.5
2
2.5
3
3.5
4
4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月
34期
35期
36期
9
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
34th Term
35th Term
36th Term
-
Target: 3 million units
1) If the penetration rate reaches 20%, the market size will be
10 million units, or 1 trillion yen. (Current penetration rate:
approx. 6%)
2) If we acquire 3 million users (with 30% market share), we
will achieve 20 billion yen annual sales of purification cartridge
(assuming 70% replacement rate)
FY3/12FY3/11 FY3/13 FY3/14 FY3/15 FY3/17FY3/16 FY3/18
[Drinking Water / EHW] Stock-type Business:Sales of Water
Purification CartridgesEstablishing a foundation of stable
earnings
2,219 2,417
2,649
3,062 3,114
3,536
3,884 4,142
4,290
(Millions of yen)
FY3/19(Forecast)
10
-
Identifying the Mechanism and New Function of EHWMore empirical
evidence / differentiation from other waters / development into new
fields
[Research Projects with Universities]
1. Identifying the mechanism for the benefits of EHW
(Basic / animal / human)
RIKEN Joint research started in May 2017
2. Effects of drinking EHW on diabetes
(Clinical studies) Tohoku Univ. School of MedicineClinical test
ended in the end of 2017;Now under analysis
3. Effects of drinking EHW on lifestyle diseases
(Clinical studies)
Susaki City, Kochi Prefecture; Kochi Medical School
Now recruiting research participants
Effects on reduction of healthcare expenditures
(Epidemiological survey)
4. Identifying the physical properties of EHW
(Basic)School of Engineering, The University of Tokyo
Mechanism for antioxidant strength of EHW
5. Understanding the effects on reducing depression by drinking
EHW
(Animal) Karolinska InstituteDispatching researchers from Tohoku
University
6. Effects of drinking EHW on race horses
(Animal)
Graduate School of Animal Husbandry at Obihiro University of
Agriculture and Veterinary Medicine
With the transfer of the associate professor in charge, it is
planned to continue the study with the Joint Faculty of Veterinary
Medicine, Yamaguchi University
7. Effects of drinking EHW on exercise performance
(Human)Ritsumeikan University, Faculty of Sport and Health
Science
Plan to post a paper around in June 2018
8. Effects of EHW on maintainingfreshness of fish
(Basic)Kochi University of Technology, School of Systems
Engineering
Acquired significant data and now applying for patent
11
-
1. Target for FY3/19: Sales of 100 million yen
2. Promoted Kangen Vegetables Project in Kochi Prefecture and
feasibility study in Noshiro City
3. Participated in exhibition at JFSS (Jakarta Food Security
Summit)
1) Ambassador of Japan to Indonesia, Ambassador of Japan to
ASEAN, Minister of Agriculture of Indonesia and Minister of
Economic Coordination of Indonesia visited the exhibition. The
articles were posted on many media.
2) Discussions are underway for experimental cultivation in the
region.
Demonstration and Promotion of Kangen Vegetable®Changing
agriculture with EHW
Hokuu Shimpo (Dec. 7, 2017) Our booth in JFSS (Mar. 8,
2018)12
[Agriculture 1]
Dr. Amran Sulaiman, Minister of Agriculture of Indonesia
-
[Drinking Water / Overseas]
[Pristine]
1. Bottled Water Business in Indonesia (PT. SUPER WAHANA
TEHNO)
1) Sales for FY2018 (actual): 768 million yen (up 8.6%
year-on-year).Sales for FY2019 (plan): 943 million yen (up 22.8%
year-on-year)
2) Enhancing the quality control system to Japanese
standard.
3) Strengthening distribution into nation-wide convenience store
chains(Alfamart, Indomaret, etc. Around 24,000 stores across the
nation).
Aiming to be a 10 billion yen sales business
2. EHW Apparatus / Overseas
1) China (Trim (Guangzhou) Water & Health Co., Ltd.)Sales
for FY2018 (actual): 221 million yen (up 198.2% year-on-year)Sales
for FY2019 (plan): 256 million yen (up 15.9% year-on-year)
2) Vietnam – Sales in units for FY3/19 (plan): 2,000 units
3) Potential new targets: India, Cambodia, the Philippines, Sri
Lanka,
Malaysia, Thailand, Myanmar, etc.
Aiming to sell 10 thousand units of EHW apparatus per year in
three years’ time.
Expansion of Overseas Sales ChannelsExpanding bottling business
and developing into new countries
Website of a major agent in China for TRIM ION
13
-
[Medical 1]
1.Sales for FY3/18: 44 million yen / Target Sales for FY3/19:
200 million yen
2.Published a paper on UK scientific journal Scientific Reports
(in Jan. 2018)1) Mortality rate and risk of developing
complications reduced by 41%
(based on the results of a 5-year prognosis study).
2) Fatigue and itchiness after dialysis are mitigated, anddosage
of antihypertensive drugs are reduced.
1) Benefits to hospital management
Mitigates the problem of decreasing revenue from conventional
dialysis by reducing drug costs and labor costs (through mitigated
workload of nursing staff and medical technicians).Cost-benefit
analysis has revealed that there is a positive effect of 410,860
thousand yen for 5 years (assuming 50 beds and 150 patients).
2) Reducing side effects and improve QOL of dialysis
patients.
Scaling up sales activities towards the market of 135 thousand
beds in 4,396 institutions across Japan (as of the end of
2016).
3.Joint research scheduled with RIKEN and a major dialysis
hospital (in Osaka city) (from Fall 2018)
“Electrolyzed Water Hemodialysis” Next-generation Dialysis
Treatment Method (1)To be the world’s standard treatment
* 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)
>
14
136
123
111
100 91
141 133
126
119
112
90
100
110
120
130
140
150
Nu
mb
er o
f re
mai
nin
g p
atie
nts
(p
erso
ns)
Period of dialysis
Number of patients by FY (persons)
通常透析 電解水透析 電解水透析(紹介増）
(Assuming 50 beds and 150 patients)
Assuming that all patients who newly developed
cardio-cerebrovascular disorder will transfer out.
Year 1 Year 2 Year 3 Year 4 Year 5
Conventional
hemodialysis
Electrolyzed water
hemodialysis
-
[Medical 2]
Trim Medical Holdings Inc.Han Kun Hospital
1. Finally, Japanese-style medical services for diabetes and
hemodialysis open
1) Opening ceremony of the flagship hospital in Beijing is
planned for May 9, 2018.
2) Up-front investment period:Loss on investment in equity
method affiliates: 53 million yen for FY3/18 and approx. 180
million yen for FY3/19 (estimate).Contribution to the Group’s
earnings: FY3/20 onward.
3) Anticipating sales of 5 billion yen with operating margin of
over 20%.
2. Started actions to deploy multiple institutions in
ChinaPotential locations: Dalian, Shanghai, Xian, Inner Mongolia,
etc.
Image of completed building
Hospital Operation Business in China (1)Government-led
“Internationalization of Japanese Medical” being promoted under
private-public partnership
15
-
[Medical 2]
Trim Medical Holdings Inc.Han Kun Hospital
The 18th report on international development of medical care at
the Headquarters for Healthcare Policy (June 14, 2017)
Website: Prime Minister of Japan and His Cabinet
http://www.kantei.go.jp/jp/singi/kenkouiryou/suisin/suisin_dai18/gijisidai.html
Document 1: International development on health and medical
care.
Hospital Operation Business in China (2)Government-led
“Internationalization of Japanese Medical” being promoted under
private-public partnership
16
Current Status of International Medical Service Base of Japan
(Those relating to governmental support)Total of 23 locations are
operating in FY2017
Opened as of the end of FY2016 (17 locations)
Scheduled to open in FY2017 (6 locations)
Pharmaceutical factory under feasibility study(1 location)
Russia-Japan Cardiac Imaging Training Center(Russia)Opened in
Sep. 2015. MEJ and Toshiba Medical Systems Corp.
Breast Cancer Screening Center (Myanmar)Opened in Feb. 2015.
Mediva, Fujifilm, Kameda Medical Center, and Okayama University
Generic Drug Factory (Azerbaijan)Under feasibility study. JGC
and others.
Breast Cancer Screening Center (Qatar)Opened in Feb. 2016.
Fujifilm
Japan Tabarak Hospital (Egypt)To be opened in Aug.
2017.International Frontier Medical Support and others
SAKRA WORLD HOSPITAL (India)Opened in Mar. 2014. Secom Medical
System and Toyota Tsusho
Thai - Training and Education Center (Thailand)Opened in Jul.
2016. Olympus
Kaikoukai Clinic Senayan (Indonesia)Opened in Jul. 2014.
Kaikoukai Healthcare Group
Clinical Dental Technology Training Center (Indonesia)Opened in
Sep. 2016. Morita and Bell Dental Clinic
Dialysis Center and CT Center (Myanmar)Opened in Aug. 2014 and
Sep. 2015. Green Hospital Supply
Puhua-Aizawa Rehabilitation Center (China)Opened in Mar. 2015.
Jisenkai (Aizawa Hospital)
Medipas Central Hospital (Mongolia)Opened in Feb. 2016.
Mediva
Endoscope Training Center (Indonesia)Opened in Sep. 2014. Japan
Gastroenterological Endoscopy Society and Olympus
Japan-style Health Checkup and Inspection Center (Cambodia)To be
opened in 2017.Japan Anti-Tuberculosis Association
Leo Medicare (Myanmar)Opened in Feb. 2015. Daiyukai
Japan Vietnam Gastrointestinal Endoscopy Training Center
(Vietnam)Opened in Jul. 2014. Nagoya University and Fujifilm
International Advanced Gastrointestinal Endoscope Center (The
Philippines) Opened in Oct. 2015. Gastrointestinal Medical Care
Research Center (Kobe University)
Sunrise Japan Hospital (Cambodia) Opened in Sep. 2016. JGC,
Innovation Network Corporation of Japan, and Kitahara International
Hospital
Lifestyle Disease Prevention / Treatment Center (tentative)
(China)To be opened in Oct. 2017.Nihon Trim
Hokuto Image Diagnosis Center (Russia)Opened in May 2013. Hokuto
Hospital
Vladivostok Rehabilitation Center (tentative) (Russia)Business
organization to be established in May 2017.Hospital to be opened in
2018.Hokuto Hospital and JGC
Japan-style Colorectal Cancer Screening System Training Center
(Brazil) Opened in Jan. 2015. Tokyo Medical and Dental University
and Fujifilm
Comprehensive Medical Examination Center (Vietnam)To be opened
in 2017.International University of Health and Welfare and Toshiba
Medical Systems Corp.
Asia Rehabilitation Center (tentative) (Vietnam)To be opened in
2017.Kitahara International Hospital
http://www.kantei.go.jp/jp/singi/kenkouiryou/suisin/suisin_dai18/gijisidai.html
-
[Advanced Medical Care 1]The Largest Private Cord Blood Bank in
JapanStoring cord blood in anticipation of its use in regenerative
Medicine and cellular therapy to treat diseases in the future
Trim Medical Holdings Inc.
1. Listed as “umbilical cord blood operator” in website of
Ministry of Health, Labor and Welfare.Note1
1) Number of new cord blood storage per year: 99% share in
Japan. (As of April 16, 2018)
2. Aiming to achieve the storage rate of 1% in 5 years (3 times
the current rate)
1) Sales for FY3/18: Approx. 850 million yen
2) Vitalizing clinical studies in Japan:Infantile paralysis,
Hypoxic ischemic encephalopathy, and ASD (autism spectrum
disorder)
3) Full-page advertisement in the Yomiuri Shimbun (First in the
industry)
Number of newborns
(Thousand)
Number of cord blood collected
(Thousand)
Cord blood collection
ratio
USA 4,030 120 3%
South Korea 460 70 15%
Taiwan 210 10 5%
Japan 980 3 0.3%
Note 1:
http://www.mhlw.go.jp/seisakunitsuite/bunya/kenkou_iryou/
kenkou/ishoku/saitaiketsu.html
(Reference) Number of storage: 43,368; Number of hospitals
collecting cells: 1,890 (As of April 16, 2018) 17
Cell storage facility (Yokohama City)
-
[Advanced Medical Care 2]Strengthen Business Foundation in
Fields of Regenerative and Restoration Medicine and Reproductive
Medicine (for Fertility Treatment)
Trim Medical Holdings Inc.
Icellator from Tissue Genesis LLC
High-performance, Compact Programmable Deep Freezer
from STREX
18
1. Human Life CORD- Developing medicines made in Japan based on
cells derived from human placenta and umbilical cord -
1) Concluded license agreement with Tissue Genesis LLC (Hawaii,
USA) for research and development of stem cell isolation and
extraction equipment for clinical use and its sales in Japan and
China. (August 2017)Aiming to acquire certification for medical
device for clinical use.
2) Concluded a joint research agreement with The Institute of
Medical Science, The University of Tokyo, to conduct a joint
research on using umbilical cord-derived mesenchymal stem cells.
(September 2017)
3) Concluded a joint research agreement with Kansai Medical
University for the research on repair and regenerative treatment
for minimally invasive breast reconstruction. (October 2017)
4) Aiming to acquire manufacturing and sales approval in
FY3/20.
2. STREX- Abundant know-how on equipment in the fields of
regenerative and reproductive medicine -
1) Sales for FY3/19 (plan): 100 million yen
2) Developing, manufacturing, and selling unique products based
on proprietary technologies such as Stretch System, Procreate
System, and Deep Freezer.
-
1. Water Healthcare Business: Prioritize prevention to reduce
treatment and nursing home care
2. Establish new business vectors in business domains including
the fields of medical care, advanced medical care, and
agriculture
3. 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 hemodialysisCord blood bankCell drug
discoveryRegenerative/reproductive medicine-related
equipmentHospital operation in China
32.0 billion yen
AgricultureEstablishing Kangen Vegetable® brandSale of EHW
apparatus for growing Kangen Vegetables
2.0 billion yen
IndustrialCleansing system for dies, semiconductors and other
itemsRust prevention
0.5 billion yen
OverseasEHW apparatus (China, Taiwan)Bottled water
(Indonesia)
20.0 billion yen
New business - 7.5 billion yen
Target business volume per year
Become a 100 billion yen company by FY3/27
19
The Business Goals of the Trim GroupTransform from a household
medical device supplier into a medical company
[Group Operations]
-
20
1. Overview of the Nihon Trim Group Business Pages 3 - 19
2. Business Performance, Forecast, Indices, etc. Pages 20 -
26
3. Supplementary Materials Pages 27 - 34
-
[FY3/18 Results: Consolidated Statement of Income]
21
Amount % Amount %
Net sales 15,251 100.0% 14,027 100.0% -1,223 -8.0%
Cost of sales 3,860 25.3% 4,225 30.1% 364 9.4%
Gross profit 11,390 74.7% 9,802 69.9% -1,588 -13.9%
SG&A expenses 8,461 55.5% 8,196 58.4% -265 -3.1%
Operating profit 2,929 19.2% 1,606 11.4% -1,322 -45.2%
Non-operating income 132 0.9% 160 1.1% 27 20.9%
Non-operating expenses 156 1.0% 85 0.6% -71 -45.5%
Ordinary profit 2,905 19.0% 1,681 12.0% -1,223 -42.1%
Extraordinary income 71 0.5% 161 1.1% 89 125.9%
Extraordinary losses 0 0.0% 0 0.0% 0 54.8%
Profit before income taxes 2,976 19.5% 1,842 13.1% -1,133
-38.1%
Income taxes 932 6.1% 607 4.3% -324 34.8%
Profit attributable to non-controlling
interests74 0.5% 53 0.4% -21 29.1%
Profit attributable to owners of parent 1,969 12.9% 1,181 8.4%
-787 -40.0%
Net income per share -91.10 yen -38.9%
Change
(Amount)
Change
(%)
234.46 yen 143.36 yen
(Rounded down to millions of yen)FY3/17 Results FY3/18
Results
-
[FY3/18 Results: Sales by Business Segment]
22
Amount % Amount %
(Flow-type business)
DS Division (workplace sales) 4,437 29.1% 4,105 29.3% -332
-7.5%HS Division (installation and referral sales) 1,881 12.3%
1,769 12.6% -112 -6.0%SS Division (store event sales) 670 4.4% 529
3.8% -141 -21.0%MS Division (OEM and wholesale sales) 1,839 12.1%
637 4.5% -1,202 -65.4%MS Division (after-sales services) 297 1.9%
290 2.1% -7 -2.4%
EHW systems sales, total 9,127 59.8% 7,332 52.3% -1,795
-19.7%(Stock-type business)
Cartridges 3,885 25.5% 4,135 29.5% 250 6.4%(Sales of
subsidiaries)
TRIM (Guangzhou) Water & Health Co., Ltd. 74 0.5% 221 1.6%
147 198.2% PT. SUPER WAHANA TEHNO 708 4.6% 768 5.5% 60 8.6%
(Others) 624 4.1% 590 4.2% -34 -5.4%Total 14,418 94.5% 13,046
93.0% -1,372 -9.5%
Regenerative medicine 807 5.3% 936 6.7% 129 16.0%Electrolyzed
water hemodialysis and
MGO measurement5 0.0% 44 0.3% 39 780.0%
Others 19 0.1% - - -19 -
Total 832 5.5% 981 7.0% 149 17.9%
15,251 100.0% 14,027 100.0% -1,224 -8.0%Consolidated, total
Change
(%)(Rounded down to millions of yen)
Wate
r He
althcare
Bu
sine
ssM
edical B
usin
ess
FY3/17 Results FY3/18 Results Change
(Amount)
-
[A Healthy Financial Condition (Consolidated)]
23
Percentage of the amount in current assets: 81.3%
* TSE listed-company average: 29.1%(with the reference to the
aggregate summary of financial results for the fiscal year ended
March 31, 2017 on the Tokyo Stock Exchange website)
(Rounded down to millions of yen) As of Mar. 31, 2017 As of Mar.
31, 2018
Current assets 17,228 17,246
A: Cash and deposits 11,480 11,520
B: Accounts receivable-installment
2,363 2,495
A + B: Total 13,843 14,016
Non-current assets 6,789 6,791
Total assets 24,018 24,038
(Rounded down to millions of yen) As of Mar. 31, 2017 As of Mar.
31, 2018
Total assets 24,018 24,038
Net assets 17,754 17,425
Equity ratio 73.9% 72.5
-
[FY3/19 Forecasts: Consolidated Statement of Income]
24
Amount % Amount %
Net sales 14,027 100.0% 15,340 100.0% 1,313 9.4%
Cost of sales 4,225 30.1% 4,610 30.1% 385 9.1%
Gross profit 9,802 69.9% 10,730 69.9% 928 9.5%
SG&A expenses 8,196 58.4% 8,600 56.1% 404 4.9%
Operating profit 1,606 11.4% 2,130 13.9% 524 32.6%
Non-operating income 160 1.1% 94 0.6% -66 -41.3%
Non-operating expenses 85 0.6% 194 1.3% 109 128.2%
Ordinary profit 1,681 12.0% 2,030 13.2% 349 20.8%
Extraordinary income 161 1.1% - - -161 -
Extraordinary losses 0 0.0% - - -0 -
Profit before income taxes 1,842 13.1% 2,030 13.2% 188 10.2%
Income taxes 607 4.3% 722 4.7% 115 18.9%
Profit attributable to non-controlling interests 53 0.4% 97 0.6%
44 83.0%
Profit attributable to owners of parent 1,181 8.4% 1,210 7.9% 29
2.5%
Net income per share 5.75 yen 4.0%
Change
(Amount)
Change
(%)
143.36 yen 149.11 yen
(Rounded down to millions of yen)FY3/18 Results FY3/19
Forecast
-
[FY3/19 Forecasts: Sales by Business Segment]
25
Amount % Amount %
(Flow-type business)
DS Division (workplace sales) 4,105 29.3% 4,545 29.6% 440
10.7%HS Division (installation and referral sales) 1,769 12.6%
1,879 12.2% 110 6.2%SS Division (store event sales) 529 3.8% 557
3.6% 28 5.3%MS Division (OEM and wholesale sales) 637 4.5% 813 5.3%
176 27.6%MS Division (after-sales services) 290 2.1% 293 1.9% 3
1.0%
EHW systems sales, total 7,332 52.3% 8,087 52.7% 755
10.3%(Stock-type business)
Cartridges 4,135 29.5% 4,290 28.0% 155 3.7%(Sales of
subsidiaries)
TRIM (Guangzhou) Water & Health Co., Ltd. 221 1.6% 256 1.7%
35 15.9% PT. SUPER WAHANA TEHNO 768 5.5% 943 6.1% 175 22.8%
(Others) 590 4.2% 581 3.8% -9 -1.5%Total 13,046 93.0% 14,157
92.3% 1,111 8.5%
Regenerative medicine 936 6.7% 1,069 7.0% 133 14.2%Electrolyzed
water hemodialysis and
MGO measurement44 0.3% 114 0.7% 70 159.1%
Total 981 7.0% 1,183 7.7% 202 20.6%
14,027 100.0% 15,340 100.0% 1,313 9.4%Consolidated, total
Change
(%)(Rounded down to millions of yen)
Water H
ealthcare B
usin
essM
edical B
usin
ess
FY3/18 Results FY3/19 Forecast Change
(Amount)
-
25 2530
35
50 50
60 60 60 60
Adjusted for the number of shares after the stock split
Dividend trend (Yen)
Shareholder special benefit plan: Discount coupon for Nihon Trim
products
2-for-1 stock split in October 2013
26
[Dividend]DividendsDividend policy: Emphasize paying stable
dividends, while payout ratio to improve gradually
FY3/19 (fct.)FY3/10 FY3/12FY3/11 FY3/13 FY3/14 FY3/15
FY3/17FY3/16 FY3/18
-
27
1. Overview of the Nihon Trim Group Business Pages 3 - 19
2. Business Performance, Forecast, Indices, etc. Pages 20 -
26
3. Supplementary Materials Pages 27 - 34
-
[Basic Research Field]
[Medical/Preventive Medical Care Field]
[Agricultural and Livestock Field]
1. Riken, National Research and Development Agency Identifying
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 University Electrolyzed
water hemodialysis (clinical studies)/Effects on drinking EHW on
diabetes (clinical studies)
7. Kochi Medical SchoolEffects of drinking EHW on lifestyle
diseases (clinical studies)
Effects on reduction of healthcare expenditures (epidemiological
survey)
8. Faculty of Agriculture and Agricultural Science Program,
Kochi University
Demonstration of Kangen Vegetables
9. Obihiro University of Agriculture and Veterinary Medicine
Effects on preventing gastric ulcers of race horses by drinking
EHW
28
[Research Projects with Universities]
Identifying the Mechanism and New Function of EHW
-
29
[Excerpt from Joint Research Reports][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 MedicineA novel bioactive hemodialysis system using
dissolved dihydrogen(H2) produced by water electrolysisNephrology
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 hemodialysis[2009]Nephron Clinical Practice Jointly
authored paper with Tohoku Univ. School of MedicineBiological
effect of electrolyzed water in hemodialysis[2008]Vascular Medicine
Jointly authored paper with Tohoku Univ. School of
MedicineInvestigation 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
MedicineLess-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
[2018]Scientific Reports Jointly authored paper with Tohoku
Univ. Novel hemodialysis (HD) treatment employing molecular
hydrogen (H2)-enriched dialysis solution improves prognosis of
chronic dialysis patients: A prospective observational
study[2017]PLOS ONE Jointly authored paper with Tohoku Univ.
Possible clinical effects of molecular hydrogen (H2) delivery
during hemodialysis in chronic dialysis patients: Interim analysis
in a 12 month observationEquine Science Jointly authored paper with
Obihiro Univ. of Agriculture and Veterinary Medicine Effect of
drinking electrolyzed hydrogen water on gastrointestinal
manifestation in racehorses at Oi racetrack (a. k. a. Tokyo City
Keiba)PLOS ONE Jointly authored paper with Kyushu Univ. and Faculty
of Medicine, Univ. of TokyoElectrolyzed hydrogen water has stronger
intracellular reactive oxygen scavenging ability on HT 1080 cells
than hydrogen water of the same hydrogen concentration[2016]Renal
Replacement Therapy Jointly authored paper with Fukushima Medical
Univ. and Tohoku Univ. School of MedicineThe hydrogen molecule as
antioxidant therapy: clinical application in hemodialysis and
perspectivesJournal of the Veterinary Medicine Jointly authored
paper with Obihiro University of Agriculture and Veterinary
MedicineEffect of drinking electrolyzed hydrogen water on
prevention of the development of gastric ulcers in horses caused by
non-steroidal anti-inflammatory drugs[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
-
[Research 2]
It suggests that “electrolyzed water hemodialysis" suppresses
the death or development of cardio-cerebrovascular disease in
chronic dialysis patients, leading to a possible improvement in
prognosis of patients.
Note: Hazard ratio 0.59 (95% confidence interval: 0.38 - 0.92)
When the incidence in conventional dialysis is 1, it is 41% lower
at 0.59 in electrolyzed water hemodialysis. It indicates that
statistically, electrolyzed water hemodialysis is significantly
effective.
The percentage of patients not suffering deaths or complications
is significantly higher. [Key points in the paper]
(1) In Japan, the incidence of cardio-cerebrovascular
complications in dialysis patients is extremely high, which is the
main cause of death.
(2) The number of deaths of dialysis patients treated with
“electrolyzed water hemodialysis” and the effect on the occurrence
of cardio-cerebrovascular disease were investigated.
(3) It was revealed that “electrolyzed water hemodialysis"
reduces the number of death and risk of developing
cardio-cerebrovascular disease by 41%.
[The paper published on:]
British scientific journal “Scientific Reports 8, Article
number: 254
(2018)”http://www.nature.com/articles/s41598-017-18537-x (Posted on
January 10, 2018)
Online journal from Nature Publishing Group which publishes
Nature. Impact factor: 4.847 (2016)
“Electrolyzed Water Hemodialysis” Next-generation Dialysis
Method (2)Paper published on Scientific Reports, British scientific
online journal
30
Hazard ratio 0.59 (95% CI 0.38 - 0.92) Note
Electrolyzed water hemodialysis patient group
Conventional dialysis patient group
Pro
po
rtio
n o
f p
atie
nts
no
t su
ffer
ing
dea
th o
r o
ccu
rren
ce o
f ca
rdio
-cer
ebro
vasc
ula
r d
isea
ses
Since dialysis patients suffer death or complications over time,
the graphs decline toward the right.While the conventional dialysis
group (green) is descending fast, the electrolyzed water
hemodialysis group (blue) is declining slowly, indicating that it
is less likely to have their occurrence.
Observation period (days)
http://www.nature.com/articles/s41598-017-18537-x
-
1. Joint research with Veterinary Practice Research Department
at Obihiro University of Agriculture and Veterinary Medicine
1) Preventing the development of gastric ulcers in horses with
drinking EHW (Incidence rate of gastric ulcer is around 70% in
horses, 90% in racehorses.)
[June 2016 edition of Journal of the Veterinary Medicine,
Vol.69, No. 6]
2) Drinking EHW to prevent “loss of appetite“ which may impair
racehorse performance [Equine Science Vol.54, No.1] (March 15, 2017
issue of a journal from Equine Research Institute, Japan Racing
Association)
Equine Science Vol.54, No.1 Changes in the appetite score
(median) after pre-race training, as well as before and after the
race under drinking EHW or tap water
31
[Research 3]
Effect of Drinking EHW on Racehorses
Appetite score
Good
Slightly lower
Moderately lower
Significantly lower
No appetite
*: Statistically significant difference for tap waters.
EHW group
Tap water group
Bef
ore
p
re-r
ace
trai
nin
g
Aft
erp
re-r
ace
trai
nin
g
1 d
ay a
fter
pre
-rac
e tr
ain
ing
2 d
ays
afte
rp
re-r
ace
trai
nin
g
3 d
ays
afte
rp
re-r
ace
trai
nin
g
Aft
er r
ace
1 d
ay a
fter
rac
e
2 d
ays
afte
r ra
ce
3 d
ays
afte
r ra
ce
4 d
ays
afte
r ra
ce
5 d
ays
afte
r ra
ce
-
Demonstration and Promotion of Kangen Vegetable®Summary of
cultivation data on leafy vegetables cultivated with EHW
116%
110%
126%
108%107%
105%
100%
110%
120%
130%
コマツナ （６回） バジル （１回） 青ネギ （３回） ベビーリーフ（１回） ホウレンソウ（４回） ニラ （６回）
Rat
io t
o t
rad
itio
nal
pra
ctic
e
[Harvest volume]
107%110%
121%
145%
100%
110%
120%
130%
140%
150%
コマツナ（5回） バジル（１回） ベビーリーフ（1回） ニラ（2回）
Rat
io t
o t
rad
itio
nal
pra
ctic
e
[Antioxidative activity] Antioxidative activities are increasing
with EHW.
Antioxidative activity: Comprehensive index of antioxidative
strength of vegetables.(Measured at Faculty of Agriculture, Kochi
University)
These are only examples. The results may vary depending on
environment and conditions of cultivation.
The harvest volume generally increases with EHW.
32
[Agriculture - Data]
Japanese mustard spinach (6 tries)
Basil (1 try)
Japanese mustard spinach (5 tries)
Green spring onion (3 tries)
Basil (1 try)
Mesclun (1 try)
Mesclun (1 try)
Spinach (4 tries) Chinese chive (6 tries)
Chinese chive (2 tries)
-
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 4,235 (as of the end of March 2018)
Employees (consolidated)
479 (as of the end of March 2018)
President Shinkatsu Morisawa
Main banksSumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
HERBIS ENT, where the Company’s headquarters are located
[About Us]
33
Member of Nippon KeidanrenMember of Industrial Promotion
Committee,
Kansai Economic FederationMember, Japan Hospital
AssociationDirector, Functional Water Foundation
-
Japan
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
Overseas
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)
Trim Electric Machinery (The City of Nankoku, Kochi Prefecture:
completed in 2002)
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; formed capital alliance in May 2017)
34
[Nihon Trim Group Companies]
Water Healthcare Business Medical Business
