How we have joined Medical Industry and extension to ASEAN market. Hiroo Nakagawa President Nara Seiko INC.

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1 Nara Seiko INC. 1

2 How we have joined Medical Industry and extension to ASEAN market Hiroo Nakagawa President Nara Seiko INC. 2

3 Corporate outline Company name Nara Seiko INC. Location 3681,Obu,Sakurai, ,Nara JAPAN Telephone. TEL Fax. FAX Homepage Officer composition President Hiroo Nakagawa Foundation November 1,1968 Capital 30 million yen Site area. 4748m2 Construction area. 1974m2 Number of employees 45 3

4 4

5 Quality and Environment QC Challenge. ISO9001(2008) 1998 Approval. ISO13485(2003)1999 Approval. Environment requirement. ISO14001(2004) 1999 Approval. 5

6 Business activity * Development of medical design ~ Production to the product. * Manufacturing of precision metal parts Medical machines Optical machines Business machines Railroad parts Aircraft parts Others 6

7 Sales and sales ratio Sales(2013) 410,020,000 YEN 7

8 Sales and sales ratio Sales(2014) 432,690,000 YEN 8

9 Sales difference Amount of money unit : 10,000 yen Difference Medical 12,606 13, Optical 12,166 11,570 (596) Business 9,576 8,904 (672) Transport 2,339 3,587 1,248 Others 4,315 5,868 1,553 Sales 41,002 43,269 2,267 9

10 Production Capability Production by abut : 70 Larg size CNC lathe : 8 Small size CNC lathe : 16 Precision small CNC lathe : 15 Machining center : 7 etc. 10

11 Production site Reduction of cost by fully automated cutting of small parts 11

12 Production site High-precision, high-quality machining based on the manufacturing experience of medical equipment 12

13 Inspection equipment. A three-dimensional measurement machine. : 1 Digital scope. : 1 Super-depth measurement microscope. : 1 Digital style micro-scope. : 1 The three-dimensional surface nature measurement vessel which a very precise fault touches. : 1 A right circular occasion measurement vessel. : 1 Surface coarseness meter. : 1 13

14 Measurement site The most advanced measurement machine 14

15 Machining technology High technological capacity for production. 1.Accumulation of machining technology over several years. Aluminum alloy : 47 years Titanium alloy : 27 years 2.Automatic machining of parts of various sizes using large and small-sized compound lathes. Number of compound NC lathes : 24 Part size : φ1~φ L 3.Introduction of machining centers for unattended operation and cost reduction. Number of machining centers : 8 Part size : L 4.Efficient small-lot production based on the manufacturing experience of medical and optical equipment. 15

16 Production Parts (Optical) An optical machine cam pipe An optical lens cross section 16

17 Production parts (Aircraft) 17

18 Production parts (Business) 18

19 The production of the medical machine Our processing product introduction 19

20 An artificial thigh joint Trade name:mc-support 20

21 An artificial thigh joint Trade name:modurec-cup 21

22 An artificial knee joint Trade name: Implant for the thighbone 22

23 Implants for the inside of the body fixation Trade name:inter locking staple 23

24 Implant for the bone union (thighbone) Trade name:compression hips screw. 24

25 Implants for the inside of the body fixation. Trade name : Screw for the inside of the body fixation. 25

26 Implant for the spine fixation Trade name : spine screw 26

27 In the bone for the dentistry implant Trade name : JIAD (KOM) implant 27

28 An operating instrument for the dentistry. Trade name : Slither (bone-chisel). 28

29 An operating instrument/for the dentistry Trade name : Octopus 29

30 An operating instrument/for the dentistry Trade name:carving 30

31 An operating instrument/for the dentistry Trade name:carving 31

32 An operating instrument/for the medical treatment.(for the thigh joint) Trade name : A guide pin for the orthopedics 32

33 An operating instrument/for the medical treatment.(for the thigh joint) Trade name : Compression handle 33

34 An operating instrument/for the medical treatment.(for the thigh joint) Trade name : multipolar trial 34

35 A medical machine operating instrument. ( for the spine) Trade name : Retractor 35

36 A medical machine operating instrument. ( for the surgical) Trade name : Retractor 36

37 An operating instrument for the medical treatment (For the thigh joint) Trade name : Offset-chisel 37

38 The improvement of the medical machine Our medical machine introduction 38

39 The surgical instrument of the hand Product name : An incision instrument to the double guide-type tendon sheath Product explanation : The treatment instrument that a spring finger is safe. 39

40 The improvement of the operating instrument for the surgery 40

41 The improvement of the operating instrument for the surgery 41

42 The improvement of the operating instrument for the surgery 42

43 43

44 The improvement of the operating instrument for the surgery Product evaluation : Incision width Healing days Under facing, operation 20 mm 10 This means-type 2 mm 3 44

45 The present condition of the Japanese medical machine business world 45

46 Share of imports within total domestic shipment (MTJAPAN DATA BOOK 2014) date domestic products 46

47 Segment positions by product classifications and share of imports in each segment (MTJAPAN DATA BOOK 2014) date 47

48 Domestic production conditions Imported Product account for 61.2% of total domestic shipment. The Cardiac Rhythm(99.8%), General Implant(84.6%), and Orthopedic Implant(82.8%) have high share of imported products. Japanese companies have high presence in Blood Purifier, Artificial Kidney, Home Care Product, and General Hospital Product segments. 48

49 Hope for the production in Asia 49

50 Hope for the production in Asia Step 1) First processing Selection ability of the material Machine processing (material) Bent processed(plasticity processing) Welding (Laser and Tungsten Inert Gas) Casting Dealing with CAD/CAM Modeling 50

51 Hope for the production in Asia. Step 2) Finishing processing Grinding technology Skill of the appearance quality 51

52 Hope for the production in Asia Step 3) Assembling technology (Skill of the product function) Step 4) Marking (Balance with the product appearance) Step 5) Manufacturing industry permission( 業 ) Step 6) Manufacture sales industry permission Step 7) Product approval( 製造承認 ) Step 8) ISO13485 acquisition 52

53 Hope for the production in Asia Product is supplied to the market Step 1) First processing Step 2) Finishing processing Step 3) Assembling technology Step 4) Marking Step 5) Manufacturing industry permission Step 6) Manufacture sales industry permission Step 7) Product approval Step 8) ISO13485 acquisition 53

54 Case introduction 54

55 Case introduction Product name : Retractor 55

56 Case introduction Material : Casting 56

57 Case introduction Material : Casting 57

58 Case introduction Product name : Retractor 58

59 End Thank you for the attention 59

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