Flash Report for 1st quarter Ended March 31, 2024
(on a consolidated basis) [Japan GAAP]May 10, 2024
Name: Nakanishi Inc.

Stock listing: Tokyo Stock Exchange : Standard Market

Code Number: 7716

URL: http://www.nsk-nakanishi.co.jp

Representative: Eiichi Nakanishi, President and Group CEO
Inquiries: Daisuke Suzuki, Corporate Vice President, Finance & Accounting

Tel: +81-289-64-3380

Scheduled date to submit Securities Report: May 13, 2024
Scheduled date to begin dividend payments: Supplementary materials to quarterly financial statements: Applicable
Quarterly earnings results briefing: Not applicable(All amounts are rounded down to the nearest million yen.)
1. Consolidated financial results for 1st quarter period (January 1 to March 31, 2024)(1) Operating Results
Millions of yen
Net sales

EBITDA

Operating income

1st quarter ended March 31, 2024

18,159

33.4%

5,320

15.9%

4,035

2.4%

1st quarter ended March 31, 2023

13,615

13.6%

4,592

6.1%

3,940

1.4%

Millions of yen
Ordinary income

Income attributableto owners of parent

Earnings
per share(yen)

DilutedEPS (yen)

1st quarter ended March 31, 2024

5,090

13.2%

3,376

4.2%

39.68

39.56

1st quarter ended March 31, 2023

4,495

2.8%

3,241

3.1%

38.08

37.98

Notes:

1.

Percentage figures for net sales, operating income, ordinary income and net income represent
year-on-year comparisons.

2.

3.

Comprehensive income for reporting period:
1st quarter ended March 31, 2024

6,921 million (79.9%)

1st quarter ended March 31, 2023

3,846 million (-7.5%)

EBITDA (Operating income + Depreciation + Goodwill amortization)(2) Financial Position
Millions of yen
Total assets

Net assets

Equity ratio

As of March 31, 2024

148,069

115,904

78.1%

As of December 31, 2023

140,713113,200

80.2%

Note: Ownersʼ equity As of March 31, 2024
As of December 31, 2023

115,562 million
112,859 million－ 1 －2. Dividends
Cash dividends per share (yen)
1st quarter
Year ending December 31, 2023

̶Year ending December 31, 2024

̶Year ending December 31, 2024
(forecast)
Notes:

1.

2nd quarter 3rd quarter

Year-end

Annual

24.00

̶

26.00

50.00

26.00

̶

26.00

52.00

Revisions to dividend payment forecasts during the period: Not applicable

3. Business Performance Forecasts for the Current Term (January 1 to December 31, 2024)
Millions of yen
IncomeNet sales

Operatingattributable toincomeOrdinary income owners of parent

Earnings per
share (yen)First-half period

35,534

25.7

5,854

-29.0

6,096

-45.8

4,111

-49.3

48.20

Full year

74,432

24.7

12,652-11.5

13,088

-24.1

8,894

-61.1

104.28Notes:

1.

Percentage figures represent year-on-year comparisons.

2.

Revisions to performance forecasts during the period: Not applicable

4. Others(1) Changes in the scope of consolidation during the period
Inclusion: None
Exclusion: None
(2) Application of special accounting methods in the preparation of quarterly consolidated financial
statements: Not applicable(3) Changes in accounting principles, accounting estimates, and restatement
1. Changes in accounting principles due to revision of accounting standards, etc.: Not applicable
2. Changes in accounting principles other than 1: Not applicable
3. Changes in accounting estimates: Not applicable
4. Restatement: Not applicable(4) Number of ordinary shares outstanding at the end of the period (including treasury stock)
As of March 31, 2024:

94,259,400 shares

As of December 31, 2023:

94,259,400 shares

Number of shares of treasury stock at the end of the period
As of March 31, 2024:

9,805,812 shares

As of December 31, 2023:

8,964,612 shares

Average number of shares during the period
1st quarter ended March 31, 2024: 85,113,206 shares
1st quarter ended March 31, 2023: 85,114,760 shares* This quarterly flash report is out of scope of quarterly review.

－ 2 －Table of Contents
1. Qualitative Information on Quarterly Financial Results

4(1) Explanation of Results of Operations

4(2) Explanation of Financial Position

4(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking
Information
2. Consolidated Quarterly Financial Statements and Principal Notes

56(1) Consolidated Quarterly Balance Sheets

6(2) Consolidated Quarterly Statements of Income and Comprehensive Income

8(Consolidated Quarterly Statements of Income)

8(Consolidated Quarterly Statements of Comprehensive Income)9(3) Notes to Consolidated Quarterly Financial Statements

10(Notes to Going Concern Assumption)

10(Notes to Significant Changes in the Amount of Shareholdersʼ Equity)

10(Changes in the scope of consolidation during the period)

10(Segment Information）

11

－ 3 －

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Results of Operations
In the world economy during 1st quarter, in the USA, personal consumption keeps good but itʼs getting
clear that CPI is not going to down. In Europe, consumer mind is getting down so it leads to stop
recovering consumption.
In Japanese economy, salary increase is expected but consumption is still weak. And there is shortageof manpower.
Under these circumstances, industrial sales decreased but all other segments sales increased. EBITDA,
operating income, ordinary income and income attributable to owners of parent for the quarter
increased as well.
As a result, the Group sales were ¥18,159,888 thousand (+33.4% year on year), EBITDA \5,320,778
thousand (+15.9%), operating income was ¥4,035,169 thousand (+2.4%), ordinary income was\5,090,423 thousand (+13.2%) and income attributable to owners of parent for the quarter was¥3,376,884 thousand (+4.2%).
The following is a breakdown of business performance by segment.
By the way, our company has changed segment. About year-on-year, it is analyzed by the figures atthe changed segment.
（Dental segment）
In Dental segment, Domestic sales decreased but North America sales, Europe and Asia sales
increased. Total Dental segment sales increased. segment EBITDA were almost flat and segment
operating income decreased.
As a result, sales were \11,007,337 thousand (+1.8%), segment EBITDA was \4,817,998 thousand(+0.2%) and segment operating income was \4,355,676 thousand (-1.7％).
（DCI segment）
In DCl segment, because the problem on cyber attack to a big dealer had been almost solved, sales
increased.
As a result, sales were \4,536,726 thousand, segment EBITDA was \720,608 thousand and segment
operating income was \159,902 thousand.
(Surgical segment)
In Surgical segment, Domestic, North America, Europe and Asia sales increased. Segment EBITDA andsegment operating income increased as well.
As a result, sales were \1,015,743 thousand (+24.9%), segment EBITDA was \559,379 thousand(+35.3%) and segment operating income was \532,670 thousand (+34.7％).
（Industrial segment）
In Industrial segment, Domestic, North America, Europe and Asia sales decreased. Segment EBITDA
and segment operating income decreased as well.
As a result, sales were \1,600,081 thousand (-19.7%), segment EBITDA was \426,248 thousand (12.8%) and segment operating income was \289,122 thousand (-20.3％).
(2) Explanation of Financial Position(Assets, liabilities and net asset)
Total assets at the end of 1st quarter were \148,069,180 thousand and increased by \7,356,089
thousand compared with the end of the previous fiscal year. The main reasons were that Cash anddeposits increased by \2,075,786 thousand, Goodwill increased by \992,977 thousand andConstruction in progress increased by \928,725 thousand.
－ 4 －Total liabilities were \32,164,532 thousand and increased by \4,652,437 thousand compared with theend of the previous fiscal year. The main reason was that Long-term borrowings (including Current
portion of long-term borrowings) increased by \3,008,549 thousand.
Net asset was \115,904,648 thousand and increased by \2,703,652 thousand compared with the endof the previous fiscal year. The main reasons were that Foreign currency translation adjustment
increased by ¥3,447,469 thousand, Treasury shares increased by \1,999,766 thousand and Retained
earnings increased by ¥1,159,219 thousand.
(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information
We will not change the forecast announced on February 13, 2024.
First-half period
The amount

%

Sales

\35,534 million

25.7

EBITDA\8,409 million-12.4

Operating income\5,854 million-29.0

Ordinary profit\6,096 million-45.8\4,111 million-49.3

Net income attributable toowners of parent
Full year

The amount

%

Sales

\74,432 million

24.7

EBITDA\17,770 million-0.0Operating income\12,652 million-11.5

Ordinary profit\13,088 million-24.1\8,894 million-61.1

Net income attributable toowners of parent(Note) Percentage figures represent year-on-year comparisons.

－ 5 －2. Consolidated Quarterly Financial Statements and Principal Notes(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
As of December 31,
2023
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Construction in progress
Accumulated depreciation
Total property, plant andequipment
Intangible assets
Software
Software in progress
Goodwill
Customer-related intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries andassociates
Insurance funds
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－ 6 －As of March 31, 2024

31,718,041
136,882
8,321,641
927,272
12,263,780
5,916,190
5,804,338
3,135,290-82,478
68,140,959

33,793,828
121,0428,819,225
1,106,987
12,997,748
6,089,424
6,226,357
3,092,063-84,860
72,161,816

19,053,960
11,090,021
7,449,848
2,594,819
3,679,576-20,767,549

19,626,756
11,580,200
7,632,314
2,663,143
4,608,302-21,484,712

23,100,677

24,626,004

684,030
299,212
21,934,813
7,908,707
7,541,060
38,367,825

704,184
327,505
22,927,790
8,299,806
7,890,793
40,150,080

6,520,238

6,591,328

449,419484,555

1,750,896
2,780
948,549
1,433,243-1,497
11,103,629
72,572,132
140,713,091

1,603,630－
979,448
1,473,859-1,542
11,131,279
75,907,364
148,069,180

(Thousands of yen)
As of December 31,
2023
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-termborrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on available-forsale securities
Foreign currency translation
adjustment
Total accumulated othercomprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets－ 7 －As of March 31, 2024

2,153,937
11,478,670

2,529,229
11,516,600

9,965

1,010,415

2,123,634
568,633
5,165,980
21,500,820

1,690,533
744,301
6,195,793
23,686,873

179,370
195,172
5,083,849
552,882
6,011,274
27,512,094

2,187,469
211,690
5,326,210
752,286
8,477,658
32,164,532

867,948
3,708,703
112,346,913-11,158,651
105,764,913

867,948
3,708,703
113,506,133-13,158,417
104,924,367

1,607,616

1,703,681

5,487,195

8,934,664

7,094,811

10,638,345

330,967
10,303
113,200,996
140,713,091

330,967
10,968
115,904,648
148,069,180

(2) Consolidated Quarterly Statements of Income and Comprehensive Income(Consolidated Quarterly Statements of Income)(Thousands of yen)Three months ended
March 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Surrender value of insurance policies
Subsidy income
Share of profit of entities accounted forusing equity method
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in money held in
trust
Commission expenses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current
assetsTotal extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent－ 8 －Three months ended
March 31, 2024

13,615,683
4,912,464
8,703,218

18,159,888
7,154,118
11,005,770

4,762,882

6,970,600

3,940,335

4,035,169

61,156
4
11,28540,201

172,812
4
20,37453,218

155,774－

227,51278,189574,123

729,611
102,477
1,078,496

1,256

9,514

3,166

480

2,028
12,53618,987
4,495,471

2,345
10,902
23,242
5,090,423

1,990
1,990

－
－

188

2,223

2,936

17,612

3,124
4,494,337
1,134,530
117,869
1,252,399
3,241,937

19,8355,070,587
1,797,145-103,747
1,693,397
3,377,189

522

305

3,241,415

3,376,884

(Consolidated Quarterly Statements of Comprehensive Income)(Thousands of yen)Three months ended
March 31, 2023
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests－ 9 －Three months ended
March 31, 2024

3,241,937

3,377,189-127,893

96,064

732,721604,827
3,846,765

3,447,828
3,543,892
6,921,082

3,846,019

6,920,418

745

664

(3）Notes to Consolidated Quarterly Financial Statements(Notes to Going Concern Assumption)
Not applicable.
(Notes to Significant Changes in the Amount of Shareholdersʼ Equity)
Not applicable.
(Changes in the scope of consolidation during the period)
Not applicable.

－ 10 －

(Segment Information）【Segment Information】
1st quarter ended March 31, 2023 (From January 1, 2023 to March 31, 2023)(Thousands of yen)
Per
Reconciling

Reportable segments

items

quarterly
consolidated financial
statements

DentalDCI

SurgicalIndustrial

Reportablesegment

segment

segment

segment

segments

10,809,389－

813,165

1,993,128

13,615,683－

13,615,683

－

－

－

－

－

－

－

10,809,389－

813,165

1,993,128

13,615,683－

13,615,683

4,428,906-1,793395,340

362,647

5,185,100-1,244,764

3,940,335

Sales
Revenues
fromexternalcustomers
Transactions
with othersegments
Net sales
Operatingprofit (loss)
Notes:

1.

Adjustments to segment profit chiefly comprise general administrative and testing/researchexpenses not attributable to reportable segments.

2.

Segment profit is reconciled with operating income as recorded in the consolidated statements
of income.

－ 11 －

1st quarter ended March 31, 2024 (From January 1, 2024 to March 31, 2024)(Thousands of yen)
Per
Reconciling

Reportable segments

items

quarterly
consolidated financial
statements

DentalDCI

SurgicalIndustrial

Reportablesegment

segment

segment

segment

segments

11,007,337

4,536,726

1,015,743

1,600,081

18,159,888－

18,159,888－－

57,738-57,738－

Sales
Revenues
fromexternalcustomers
Transactions
with other

57,738segments
Net sales

11,065,076

4,536,726

1,015,743

1,600,081

18,217,627-57,738

18,159,888

4,355,676

159,902532,670

289,122

5,337,371-1,302,202

4,035,169

Operatingprofit (loss)
Notes:

1.

Adjustments to segment profit chiefly comprise general administrative and testing/researchexpenses not attributable to reportable segments.

2.

Segment profit is reconciled with operating income as recorded in the consolidated statements
of income.

Change of segment
From 1st quarter of this year, DCI product segment is showing because the figures are big. DCI productsegment was included in dental products segment in the past.
Furthermore, about year-on-year, it is analyzed by the figures at the changed segment.

－ 12 －