Detailed Description of Portfolio Companies of Fund II

Nippon Oil Pump Co., Ltd.

Features Has been developing, manufacturing and selling hydraulic pumps and motors for engines, machine tools and other equipments for over 80 years since 1919. Owns a leading position in the segment of Trochoid pump and fuel pump thanks to high product quality backed by their long nurtured technologies and price competitiveness based on an efficient high-mix low volume production.
Investment Pattern Secondary buy-out from previous sponsors.
Investment Theme Support the management in business planning, internal control and finance so that the company can achieve higher presence in the market and continue the growth even after the growing trend of the machine tool users has peaked out.
Date of Exit December 2013
Exit Pattern Trade sale of the entire holdings to Wendel´╝îa listed French investment company.
Exit Story Shortly after the investment, the company encountered a drastic sales decline due to the Global Financial Crisis and, as initial countermeasures, Polaris invited a new CEO, and the company implemented various operational improvement projects such as cost reduction and short lead time delivery under the new management team. In November 2011 when the sales rebounded to the pre-crisis level, the company repurchased its own shares with the funding via preferred share issuance and Polaris recovered most of the investment cost. Most recently in order to pursue long-term growth strategies based on new product development and global market expansion, the management offered MBO with a sponsorship of a listed French investment company who has a long investment horizon and Polaris accepted the offer to achieve a complete exit.