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

May 9, 2016

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.

Results of Operations for the

Fiscal Year Ended March 31, 2016

2

1. Overview of the Nihon Trim Group Business Pages 3 - 16

2. Business Performance, Forecast, Indices, etc. Pages 17 - 24

[Contents]

3

1. Transform from a household medical device

supplier into a medical company

2. Prioritize prevention to reduce treatment and

nursing home care

3. Establish new business vectors to rank with EHW

systems in new business domains including the

medical care and the agriculture field

4. Take Japanese technologies to other countries

[The Business Goals of the Trim Group]

4

[Building a Base for Progress]

1. Entering into hospital operation business in China

2. Uncovering the new function of Electrolyzed Hydrogen

Water to differentiate it from other waters (e.g. bubbling

hydrogen water)

3. Pursuing stronger public relations and advertising activities

(for a more powerful brand)

4. Promoting “Reduced Vegetables” in collaboration with

industry, government, and academia

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

hemodialysis business

6. Expanding the cell storage business

[Medical]

[Research]

[Drinking Water]

[Agriculture]

[Medical]

[Advanced Medical Care/Regenerative Medicine]

[FY3/16 Topics]

5

1. Electrolyzed hydrogen water (EHW) systems

� Record-high in total sales volume!

� Record-high sales efficiency in direct sales, including units sold per salesperson and per workplace sales

presentation!

� Started two new large-scale OEM deals at OEM and Wholesale Sales

� Stared joint research projects with the Faculty of Medicine, Tohoku University (for uncovering effectiveness on

diabetes) and the School of Engineering, the University of Tokyo (for uncovering physical properties of EHW)

2. Agriculture

� Signed a partnership agreement with Kochi Prefectural government, the City of Nankoku, JA Nankoku City, and

Kochi University

� Won a FY2016 subsidy of the Ministry of Agriculture, Forestry and Fisheries for “Demonstration Projects for

Establishing Advanced Model Agriculture under the Partnership of the Agricultural Community and the Economic

Community”

� EHW systems for Reduced Vegetables qualified for a subsidy under the Kochi Prefecture’s “Projects for Promoting

Environmental Control Technology,” through which users can receive one-third of the introduction cost as subsidy;

or up to two-thirds of the cost if combined with the subsidy of up to one-third of the cost from the City of Nankoku

3. Medical

� “Electrolyzed Water Hemodialysis Study Group” appointed as a member of the Nationwide Scientific Meeting of the

Japanese Society for Dialysis Therapy

� Developed a new type of electrolyzed water hemodialysis system that is highly functional and more compact

� Medical institutions using “Electrolyzed Water Hemodialysis” totaled 15 locations (252 beds), with more than 40

deals under negotiation

4. Advanced medical care

� StemCell Institute Inc. (the cell processing center) acquired license approval from the Ministry of Health, Labour

and Welfare for the manufacturing of specified cell products

[Initiatives for Sales Growth for FY3/17]

6

1. Electrolyzed hydrogen water (EHW) systems

� Direct Sales: Improve sales efficiency, and explore sales channel under the theme of health management

� OEM and Wholesale Sales: Boost operating results by closing eight on-going large-scale deals

� Air spot advertising on 62 terrestrial TV stations (from May 7 to May 22, 2016)

� Strengthen overseas business (in Indonesia, China, Korea)

� Promote joint research and publications with universities to differentiate EHW with other waters

2. Agriculture

� Start growing “Reduced Vegetables” from October 2016 at a large, next-generation horticultural facility (in

the City of Nankoku)

� Substantiate the effectiveness of EHW to promote and encourage use of “Reduced Vegetables,” taking full

advantage of the subsidized projects of the Ministry of Agriculture, Forestry and Fisheries and Kochi

Prefecture

3. Medical

� Enter into hospital operation business in China

� Start selling the next-generation electrolyzed water hemodialysis system from June, which will begin to

contribute to earnings from the second half of FY3/17

4. Advanced medical care

� Initiate clinical tests using stem cells from cord blood

� Increase the number of cord blood storage by strengthening the sales capability of StemCell Institute Inc.

� Continue to strive for development and manufacture of next-generation genetic testing kits at TrimGen

Corporation

7

Entering into Hospital Operation Business in China

[Medical 1]Trim Medical Holdings Inc.

1. Government-led “Internationalization of Japanese medical” is promoted under

private/public partnership

- Providing Japanese-style medical services in China for

treatments of diabetes and dialytic therapy -

� Over 140M people (or 240M if potential patients included) with diabetes

� Supported by Cabinet Secretariat, Office of Healthcare Policy

� Diabetes: Medical team in China specialized in Japanese-style medical care

services

Dialytic therapy: Fukushima Medical University (Dr. Masaaki Nakayama at

Department of Nephrology and Hypertension)

QOL improvement: Toranomon Hospital (Dr. Koji Narui at Department of

Respiratory)

� Supported by Medical Excellence JAPAN (MEJ) for sending medical service

providers

� Also joined by major Chinese companies, major Japanese trading firms, and

healthcare-related companies

2. Business development going forward� Already established a special purpose entity “Han Kun International Holdings Ltd.” (in Hong Kong)

� Opening a flagship hospital in Beijing in early 2017

� Expecting total investment of 1.6 billion yen through Series 2 and Series 3 capital increases by both

Japanese and Chinese investors

Aiming for 50 billion yen in sales within the next 5 to 7 years

Nihon Keizai Shimbun

(April 26, 2016)

8

Loads of Media Coverage on Hospital Operation Business in China

[Medical 1] Trim Medical Holdings Inc.

Yomiuri Shimbun

(April 27, 2016)

Sankei Shimbun (April 27, 2016)

Mainichi Shimbun (April 27, 2016)TV Tokyo Morning Satellite

“Nikkei Cho-Tokkyu”

Kochi Shimbun

(April 27, 2016)

NNA (April 27, 2016)Kyoto Shimbun

(April 27, 2016)

9

Enhancing Status of Electrolyzed Water Hemodialysis to Drive its Usage

[Medical 2]

1. “Electrolyzed Water Hemodialysis (EWH) Study Group” appointed as a

member of the Nationwide Scientific Meeting of the Japanese Society for

Dialysis Therapy

2. Developing a highly functional next-generation

electrolyzed water hemodialysis system� Sales starting from June 2016

Will contribute to earnings from the second half of FY3/17

3. The 61th Conference of the Japanese Society for Dialysis Therapy (Osaka, June 10-12, 2016)

� Three presentations on Electrolyzed Water Hemodialysis

� Organizing seminars for companies for the first time

Currently used at 15 locations (252 beds),

with more than 40 deals under negotiation

Estimated domestic market: 90 billion yen

EWH Study Group Session in Shinagawa,

Tokyo on February 6, 2016

10

Expanding the Cell Storage Business

[Advanced Medical Care]Trim Medical Holdings Inc.

1. The cell processing center acquired license approval for the manufacturing of

specified cell products (from the Ministry of Health, Labour and Welfare)

� Now able to produce cord blood for medical institutions providing regenerative medicine

2. Expand service area and boost sales by increasing sales personnel

� Number of storage: 37,215 individuals

Number of hospitals collecting cells: 1,611 facilities (as of March 31, 2016)

License for the manufacturing of

specified cell products

Cell processing Cell storage facility

11

Strong Demand for EHW System (1)

[Drinking Water 1]

1. Growing hydrogen water market = Increasing demand for “EHW systems”

Advantages of EHW systems

(1) Health benefit

(2) Low cost

(3) Able to use fresh EHW at home at any time

(4) Ecology

2. Trim Electric Machinery Co., Ltd. (manufacturing plant)

Has increased its output capacity by 1.5 times

FY

3/17

(plan)

FY

3/16

FY

3/15

FY

3/14

FY

3/13

FY

3/12

FY

3/11

FY

3/10

Aiming to introduce EHW systems in

3 million households!(up from current 0.8 million)

� EHW systems: 300 billion yen

� Purification cartridge sales: 20 billion yen/year

(assuming a 70% replacement ratio)

(unit)

12

Strong Demand for EHW System (2)

[Drinking Water 2]

1. Brisk sales in Direct Sales

� Number of units sold per salesperson at a record-high level at all divisions, including

workplace sales, installation and referral sales, store sales, and after-sales service

� Workplace sales: sales unit per each presentation at a record-high level

�Further improve sales efficiency in FY3/17 + Develop more corporate customers

by proposing the “Health and Productivity Management” concept

* Health and Productivity Management

� Fuji Corporation Ltd., our customer who has installed TRIM ION at every business

site, was selected for “Health & Productivity Stock 2016”

� Two Toyota group companies each made a one-time installment over 70 units

2. OEM and Wholesale Sales

� Started two large-scale OEM deals in 4Q FY3/16

� Expecting eight new large-scale deals to start in FY3/17

3. Sales of water purification cartridges

� Growing steadily with number of units sold

Increased 14.7% year on year in FY3/16

Fuji Corporation Ltd. selected for

Health & Productivity Stock 2016

in real estate sector

13

Strengthening Public Relations and Advertising Activities

[Drinking Water 3]

1. TV Commercials

� “Hayashi Osamu’s Ima-desyo! KOZA”

(TV Asahi, Tuesdays 19:00 - 19:54)

� “Kenja-no-Sentaku Leaders”

(Nikkei CNBC, Sundays 12:00 - 12:55, BS12 Sundays 18:00 - 18:55, Sun TV Mondays 22:00 - 22:55)

� Spot advertising (100 million yen) in FY3 /16

� To continue similar advertising in FY3 /17 (from May 7 to May 22, 2016)

2. Increasing exposure through newspapers, magazines and other channels

Total number of publications in FY3/16

53 newspapers, 16 magazines, 13 TV programs, 450 news articles on website

Mamagirl, Spring issue

“Yukorin’s favorite”

Bijin Hyakka, March issue

“Featuring Hydrogen Water”

Saita, March issue

“Testing best-buys”

14

Spreading Electrolyzed Hydrogen Water Overseas

[Drinking Water /Overseas]

1. Indonesia, SWT

� FY3/16 sales: 29.7% increase year-on-year

FY3/17 sales (forecast) : 102.3% increase

� Intensify advertising and promotions

to further expand sales and boost market

share

2. Korea, HANKOOK TRIM

� Established a marketing subsidiary in April 2016 (in Seoul)

� Aim to get households to switch from water purifiers

(with 80%+ penetration rate) to EHW systems

3. China, Trim (Guangzhou) Water & Health Co., Ltd.

� FY3/16 sales: 83.7 % increase year-on-year

� Pursue further growth in EHW business in coordination

with the medical business

HANKOOK TRIM

(million Rp) SWT: Historical Sales

FY

3/17

(plan)

FY

3/16

FY

3/15

FY

3/14

FY

3/13

FY

3/12

FY

3/11

FY

3/10

FY

3/09

15

Promoting “Reduced Vegetables” with Industry, Government, and Academia

[Agriculture]

1. Partnership with Kochi Prefectural government, the City of Nankoku,

JA Nankoku City, and Kochi University (released on July 3, 2015)

� Continue to substantiate effectiveness of, promote, and market “Reduced Vegetables”

� Will open a large next-generation horticultural facility in October 2016

(area size:7,300m2, height: 5.5m, construction cost: approx. 320 million partly

subsidized by Kochi Prefecture and the City of Nankoku)

2. Subsidy program of the Ministry of Agriculture, Forestry and Fisheries (2016)“Demonstration Projects for Establishing Advanced Model Agriculture under the Partnership of the Agricultural Community and the Economic Community” (released on April 25, 2016)

� Qualified for the subsidy

3. Subsidy program of Kochi Prefectural government

“Projects for Promoting Environmental Control Technology”

(released on April 25, 2016)

� One-third of the introduction cost for EHW systems for agricultural use is subsidized

� Another one-third (at maximum) is subsidized by the City of Nankoku

� Up to two-thirds of the introduction cost could be subsidized

EHW system for

agricultural use AG-30

16

Uncovering the new function of EHW to differentiate it from other waters

[Research]

1. Confirming diabetes benefits of drinking EHW (clinical trials) The Faculty of Medicine, Tohoku University

� Targeting to complete testing by the end of 2017 to issue a paper

2. Identifying physical properties of EHWThe School of Engineering, the University of Tokyo

� Identifying the mechanism for the benefits of EHW,

including the ability to permeate or extract

3. Differentiating EHW from bubbling hydrogen water The Graduate School of Bioresource and Bioenvironmental Sciences of Kyushu University

� Jointly authored a paper with Kyushu University and the University of Tokyo,

which will be published in June 2016

4. Effectively reducing depression by drinking EHW Karolinska Institute

� Started a joint research

5. Effectively preventing gastric ulcers of horses by drinking EHW Obihiro University of Agriculture and Veterinary Medicine

� A paper to be published at ”Journal of Veterinary Medicine” on June 1, 2016

� Currently testing at Ohi Race Track (a.k.a. Tokyo City Keiba)

Electron picture of an electrode surface

17

2. Business Performance, Forecast, Indices, etc.

18

Amount % Amount %

Net sales 12,834 100.0% 15,280 100.0% 2,446 19.1%

Cost of sales 3,304 25.7% 3,840 25.1% 536 16.2%

Gross profit 9,529 74.3% 11,439 74.9% 1,910 20.0%

SG&A expenses 7,277 56.7% 8,315 54.4% 1,038 14.3%

Operating income 2,252 17.5% 3,123 20.4% 871 38.7%

Non-operating income 308 2.4% 165 1.1% -143 -46.3%

Non-operating expenses 33 0.3% 30 0.2% -3 -9.1%

Ordinary income 2,527 19.7% 3,258 21.3% 731 28.9%

Extraordinary income - - - - - -

Extraordinary losses 181 1.4% - - -181 -

Income before income taxes 2,345 18.3% 3,258 21.3% 913 39.0%

Income taxes 1,060 8.3% 1,168 7.6% 108 10.2%

Minority interests in income (loss) -22 -0.2% -14 -0.1% 8 -

Net income 1,307 10.2% 2,104 13.8% 797 61.0%

Net income per share 95.49 yen 62.0%

Change

(Amount)

Change

(%)

154.01 yen 249.50 yen

(Rounded down to millions of yen)FY3/15 Results FY3/16 Results

[FY3/16 Results: Consolidated Statement of Income]

Note: All amounts are rounded down to millions of yen

19

Amount % Amount %

(Flow-type business)

DS Division (workplace sales) 4,030 31.4% 4,976 32.6% 946 23.5%

HS Division (installation and referral sales) 1,773 13.8% 2,054 13.4% 281 15.8%

SS Division (store event sales) 658 5.1% 868 5.7% 210 31.8%

MS Division (OEM and wholesale sales) 1,240 9.7% 1,611 10.5% 371 29.9%

MS Division (after-sales services) 274 2.1% 323 2.1% 49 18.0%

EHW systems sales, total 7,977 62.2% 9,834 64.4% 1,857 23.3%

(Stock-type business)

Cartridges 3,114 24.3% 3,536 23.1% 422 13.6%

(Sales of subsidiaries)

TRIM (Guangzhou) Water & Health Co., Ltd. 48 0.4% 88 0.6% 40 83.7%

PT. SUPER WAHANA TEHNO 345 2.7% 448 2.9% 103 29.7%

(Others) 470 3.7% 550 3.6% 80 16.9%

Total 11,956 93.2% 14,457 94.6% 2,501 20.9%

Genetic diagnosis 137 1.1% 46 0.3% -91 -66.0%

Regenerative medicine 715 5.6% 754 4.9% 39 5.4%

Electrolyzed water hemodialysis and

MGO measurement23 0.2% 20 0.1% -3 -13.2%

Total 877 6.8% 822 5.4% -55 -6.3%

12,834 100.0% 15,280 100.0% 2,446 19.1%

Change

(%)(Rounded down to millions of yen)

Wa

ter H

ea

lthca

re B

usin

ess

Me

dica

l Bu

sine

ss

Consolidated, total

FY3/15 Results FY3/16 Results Change

(Amount)

[FY3/16 Results: Sales by Business Segment]

20

Percentage of the

amount in

current assets:

82.3%

* TSE listed-company

average: 38.9%(with the reference to the

aggregate summary of financial

results for the fiscal year ended

March 31, 2015 on the Tokyo

Stock Exchange website)

(Rounded down to millions of yen) As of Mar. 31, 2015 As of Mar. 31, 2016

Current assets 15,767 18,283

A: Cash and deposits 10,747 12,595

B: Accounts receivable-

installment2,444 2,461

A + B: Total 13,192 15,056

Non-current assets 5,738 5,420

Total assets 21,506 23,704

(Rounded down to millions of yen) As of Mar. 31, 2015 As of Mar. 31, 2016

Total assets 21,506 23,704

Net assets 15,661 16,819

Equity ratio 72.8% 71.0%

[A Healthy Financial Condition (Consolidated)]

21

Amount % Amount %

Net sales 15,280 100.0% 17,300 100.0% 2,020 13.2%

Cost of sales 3,840 25.1% 4,750 27.5% 910 23.7%

Gross profit 11,439 74.9% 12,550 72.5% 1,111 9.7%

SG&A expenses 8,315 54.4% 9,080 52.5% 765 9.2%

Operating income 3,123 20.4% 3,470 20.1% 347 11.1%

Non-operating income 165 1.1% 124 0.7% -41 -25.1%

Non-operating expenses 30 0.2% 44 0.3% 14 44.5%

Ordinary income 3,258 21.3% 3,550 20.5% 292 8.9%

Extraordinary income - - - - - -

Extraordinary losses - - - - - -

Income before income taxes 3,258 21.3% 3,550 20.5% 292 8.9%

Income taxes 1,168 7.6% 1,235 7.1% 67 5.6%

Minority interests in income (loss) -14 -0.1% 45 0.3% 59 -

Net income 2,104 13.8% 2,270 13.1% 166 7.8%

Net income per share 20.44 yen 8.2%

(Rounded down to millions of yen)Change

(Amount)

Change

(%)

249.50 yen 269.94 yen

FY3/16 Results FY3/17 Forecast

[FY3/17 Forecasts: Consolidated Statement of Income]

22

Amount % Amount %

(Flow-type business)

DS Division (workplace sales) 4,976 32.6% 5,376 31.1% 400 8.0%

HS Division (installation and referral sales) 2,054 13.4% 2,235 12.9% 181 8.8%

SS Division (store event sales) 868 5.7% 947 5.5% 79 9.1%

MS Division (OEM and wholesale sales) 1,611 10.5% 2,064 11.9% 453 28.1%

MS Division (after-sales services) 323 2.1% 330 1.9% 7 2.1%

EHW systems sales, total 9,834 64.4% 10,953 63.3% 1,119 11.4%

(Stock-type business)

Cartridges 3,536 23.1% 3,770 21.8% 234 6.6%

(Sales of subsidiaries)

TRIM (Guangzhou) Water & Health Co., Ltd. 88 0.6% 91 0.5% 3 3.1%

PT. SUPER WAHANA TEHNO 448 2.9% 907 5.2% 459 102.3%

(Others) 550 3.6% 603 3.5% 53 9.7%

Total 14,457 94.6% 16,326 94.4% 1,869 12.9%

Genetic diagnosis 46 0.3% 47 0.3% 1 1.1%

Regenerative medicine 754 4.9% 833 4.8% 79 10.4%

Electrolyzed water hemodialysis and

MGO measurement20 0.1% 93 0.5% 73 350.9%

Total 822 5.4% 973 5.6% 151 18.5%

15,280 100.0% 17,300 100.0% 2,020 13.2%

Change

(%)(Rounded down to millions of yen)

Wa

ter H

ea

lthca

re B

usin

ess

Me

dica

l Bu

sine

ss

Consolidated, total

FY3/16 Results FY3/17 Forecast Change

(Amount)

[FY3/17 Forecasts: Sales by Business Segment]

23

(Millions of yen)

[Trend in Consolidated Results of Operations]

FY3/2011FY3/2010 FY3/2012 FY3/2013 FY3/2014 FY3/2016FY3/2015 FY3/2017

(fct.)

Adjusted for the number of shares after the stock split

Trend in dividend (Yen)

[Initiatives to Enhance Shareholder Value]

24

* Dividends for FY3/2016: Increase from ¥50 to ¥60

(announced on January 5, 2016)

� 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

FY3/09 FY3/11FY3/10 FY3/12 FY3/13 FY3/14 FY3/17 (fct.)FY3/15 FY3/16

25

Supplementary Materials for

the Results of Operations for FY3/2016

26

(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

[Functional Water Business]

27

Household controlled medical deviceEfficacy: Improved gastrointestinal conditions �Eases stomach discomfort

�Assists in stomach and intestinal functions

and in bowel movements

EHW� Includes anti-oxidant hydrogen

� Alkaline

� Used cartridges are collected and

recycled at no charge!

The Anti-Oxidant Properties of

Electrolyzed Hydrogen Water

[Electrolyzed Hydrogen Water (EHW) System]

� In addition to the 13 JIS-designated compounds*1, this

new cartridge removes three compounds*2 in the

voluntary standards of the Japan Water Purifier

Association (JWPA).

Microcarbon Cartridges

Source: Yano Research Institute

“2014 White Paper on Water Purifiers/Water Conditioners”

Filtering capacity of water purification cartridges�Removable Materials (Total Filtered Water: 8 tons total) (Test Filter Quantity: 3L/min)

*1: 13 JIS-designated compounds 5 Bromodichloromethane 10 1,1,1-trichloroethane

1 Free residual chlorine 6 Dibromochloromethane 11 CAT (agricultural chemical)

2 Turbidity 7 Bromoform 12 2-MIB (odor of mold)

3 Total trihalomethan*3 8 Tetrachloroethylene 13 Soluble lead

4 Chloroform 9 Trichloroethylene

*3: Total trihalomethan" is the sum of the amount of materials 4 to 7.

*2: 3 JWPA voluntary

standard compounds

1 Geosmin (odor of mold)

2 Phenols

3 Anionic surfactants

28

Preventing diseases is one way to lower healthcare expenditures

[Healthcare Expenditures for Nihon Trim Employee]

Average Monthly Healthcare Expenditures / Nihon Trim Employees

(Yen)

Nationwide Nihon Trim

Japan Health

Insurance Insured people (employees)

Per capita

expenditures

Per capita

expenditures

vs. all-

Japan

20-29 5,488 3,272 60%

30-39 7,037 4,727 67%

40-49 8,859 4,825 54%

50-59 14,290 7,771 54%

60-69 22,602 18,447 82%

(Yen) Average ageHealthcare

expenditure

Fiscal 2013

National

average 44.1 13,018

(338employees)

38.47,798(61.0%)

Fiscal 2012

National

average 44.0 12,586

(315employees)

38.37,784(61.0%)

Fiscal 2011

National

average 43.9 12,586

(306employees)

38.46,940(55.1%)

Average Healthcare Expenditures by Age (Fiscal 2012)

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

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

29

[Feedback from EHW Users]

* Based on responses from 10,999 people

30

[Agriculture: Reduced Vegetables®]

Reduced

Vegetables®

(1) Using EHW increases yields

(2) Better quality results in highly functional plants

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

distributor framework

Sample research theme – Komatsuna

The AG-30 agricultural EHW system

Tap water EHW EHWTap water

Plant Comparison for Komatsuna: EHW vs. Tap Water

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

cells and have antioxidant effect

Trolox equivalent: Measured using the DPPH method

(method used to measure the antioxidant strength)

Growing by the Faculty of Agriculture of Kochi University, Analysis

by Japan Food Hygiene Association

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

above and below the ground. The amount of antioxidants

increased, too.

Plant length

(cm)

Above ground

(g/plant)

Below ground

(g/plant)

EHW 18.9 6.78 0.37

Tap water 15.7 4.57 0.30

Plant analysis

Nutrition Antioxidants

B-carotene

(μg/100g)

Vitamin C

(mg/100g)

Trolox equivalent

(mg/100g)

EHW 3,600 14 8

Tap water 3,200 13 7

Nutrition/

antioxidant

analysis

31

Electrolyzed Water Hemodialysis A Next-generation Dialysis Method (Patented)

–Improving patients’ quality of life by reducing side effects–

[Medical: Electrolyzed Water Hemodialysis]

9th Electrolyzed Water Hemodialysis

Study Group Meeting was held on

February 6, 2016 in Minato-ku, Tokyo

� A revolutionary treatment method which uses a dialysis fluid that

includes hydrogen improves patients’ quality of life by reducing oxidation

stress, inflammations and side effects

� Number of dialysis patients in Japan: About 320,000

Number of dialysis facilities: 4,330

Number of bedside dialysis systems: About 131,000

(As of the end of 2014)

Electrolyzed water hemodialysis system

For individual use For many people

How electrolyzed reverse osmosis water is produced

Preliminary filter

Purification

Activated charcoal Electrolysis module

Electrolyzed hemodialysis water tank

UV lamp

Reverse osmosis module

Reverse osmosis tank

UV lamp

Electrolyzed reverse

osmosis water

Water

32

Japan’s largest private cord blood bank

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

to treat diseases in the future–

[Advanced Medical Care: Regenerative Medicine]

Number of newborns

Number of cord blood

storage

Cord blood storage

ratio

USA 3,080,000 250,000 7%

South Korea 490,000 60,000 12%

Taiwan 200,000 10,000 5%

Japan 1,030,000 3,000 0.3%

Uses of Cord Blood

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

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

Congenital immunodeficiency (brothers-sisters) / Lymphoma malignum

(brothers-sisters), and others

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

cellular therapy]

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

1 diabetes / Spinal cord injury / Hypoacusis, and others

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

cellular therapy]

Chronic pneumonitis / Parkinsonian tremor / Cerebral infarction /

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

others

� Enactment of Act Concerning Safety

Assurance of Regenerative Medicine,

etc. (November 25, 2014)

� Clinical studies are expected to be

revitalized in Japan

Annual Cord Blood Storage Ratio for Newborns

Yomiuri Shimbun, August 27, 2014

Cord blood

stem cell

Hematopoietic

stem cell

Red blood cell

Lymphocyte cell

White blood cell

Blood platelet

Nerve cell

Vascular endothelial cell

Bone cell

Heart muscle cell

Others (stem cell, etc.)

Collection

SeparationMesenchymal

stem cell

33

[Advanced Medical Care: Genetic Testing]

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

for genetic testing kits

� Use individualized treatments for drug selection in order to

reduce side effects; lowers cost of treatment and risk of

accidents involving treatment

Major Products and Services

Gene extraction Pathogen

detection kit

Genetic testing kit Outsourced

studies

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

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

Members of TrimGen Corporation

Equipment used for research

34

[Research Projects with Universities]

(3) School of Engineering, The University of Tokyo

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

(1) Karolinska Institute (Sweden)

Department of Neuroscience

(2) School of Agriculture, Kyushu University

(Overseas)

(6) Clinical Laboratory Sciences and Medical Biotechnology,

National Taiwan University (Taiwan)

(7) Karolinska University Hospital (Sweden)

[Agricultural and Livestock Field]

- Applied for the agricultural and livestock industries

(8) Faculty of Agriculture and Agricultural Science Program,

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

Kyoto Prefectural University of Medicine

(10) Obihiro University of Agriculture and Veterinary Medicine

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

(4) Fukushima Medical University

(5) School of Medical Science, Tohoku University/

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

(Japan)

Tohoku University Hospital

Karolinska University Hospital

Hemodialysis Ward

35

[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 post-hemodialysis blood glucose concentration riseEnvironmental control in biology Jointly authored paper with Kochi Univ.

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

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

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

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

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

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

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

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

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

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

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

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

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

Nephrology Dialysis Transplantation Jointly authored paper with National Taiwan Univ.

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

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

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

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

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

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

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

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

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

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

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

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

36

Corporate Overview

Main businessManufacture and sale of household EHW system

(medical device)

Established June 12, 1982

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

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

Capital 992,597,306 yen

SharesListed on the First Section of the Tokyo Stock Exchange

Securities Identification Code: 6788

Issued shares 8,656,780 shares

Shareholders 4,549 (as of the end of March 2016)

Employees

(consolidated)482 (as of the end of March 2016)

President Shinkatsu Morisawa

Main banksSumitomo Mitsui Banking Corporation

Sumitomo Mitsui Trust Bank, Limited

[Corporate Overview]

Member of Nippon Keidanren

Member of Industrial Promotion Committee,

Kansai Economic Federation

Member, Japan Hospital Association

Director, Functional Water Foundation

HERBIS ENT, where the Company’s

headquarters are located

37

Medical BusinessWater Healthcare Business

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

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

ISO：22000：2005

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

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

in December 2015)

HANKOOK TRIM(Based in Korea; established in April 2016)

Overseas Business

[Nihon Trim Group Companies]

Trim Electric Machinery

(Nankoku city, Kochi prefecture: completed in 2002)

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

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

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

1999)

ISO9001: 2008

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

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

electrolyzed water hemodialysis system; established in December

2007)