Flash Report for 3rd quarter Ended September 30, 2021
(on a consolidated basis) [Japan GAAP]
November 12, 2021
Name: Nakanishi Inc.

Stock listing: Tokyo Stock Exchange : JASDAQ

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: November 12, 2021
Scheduled date to begin dividend payments: Supplementary materials to quarterly financial statements: Not applicable
Quarterly earnings results briefing: Not applicable(All amounts are rounded down to the nearest million yen.)
1. Consolidated financial results for 3rd quarter period (January 1 to September 30, 2021)(1) Operating Results
Millions of yen
Net sales

Operating income

Ordinary income

3rd quarter ended September 30, 2021

33,46950.2%

11,113117.2%

11,266112.4%

3rd quarter ended September 30, 2020

22,281-14.7%

5,116-22.1%

5,303-22.0%

Incomeattributable toowners of parent

Earnings per share(yen)

Diluted EPS (yen)

3rd quarter ended September 30, 2021

8,096

107.9%

93.45

93.24

3rd quarter ended September 30, 2020

3,893

-20.4%

44.94

44.84

Notes:

1.

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

2.

Comprehensive income for reporting period:
3rd quarter ended September 30, 2021 8,571 million (124.6%)
3rd quarter ended September 30, 2020 3,817 million (-23.1%)(2) Financial Position
Millions of yen
Total assets

Net assets

Equity ratio

As of September 30, 2021

89,997

81,63090.4%

As of December 31, 2020

82,47076,272

92.3%

Note: Ownersʼ equity As of September 30, 2021

81,394 million

As of December 31, 2020

76,080 million－ 1 －2. Dividends
Cash dividends per share (yen)
3rd quarter 2nd quarter 3rd quarter
Year ended December 31, 2020

̶

15.00

̶

Year ending December 31, 2021

̶

17.00

̶

Year ending December 31, 2021
(forecast)
Notes:

1.

Year-end

Annual

15.00

30.00

17.00

34.00

Revisions to dividend payment forecasts during the period: Not applicable

3. Business Performance Forecasts for the Current Term (January 1 to December 31, 2021)
Millions of yen
IncomeNet sales
Full year

41,661

Notes:

Operatingattributable toincomeOrdinary income owners of parent

26.0% 13,001

52.2% 12,988

50.5%

9,338

1.

Percentage figures represent year-on-year comparisons.

2.

Revisions to performance forecasts during the period: Not applicable

Earnings per

44.7%

share (yen)108.52

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 September 30, 2021:

94,259,400 shares

As of December 31, 2020:

94,259,400 shares

Number of shares of treasury stock at the end of the period
As of September 30, 2021:

7,803,886 shares

As of December 31, 2020:

7,602,642 shares

Average number of shares during the period
3rd quarter ended September 30, 2021: 86,637,649 shares
3rd quarter ended September 30, 2020: 86,652,764 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 3rd quarter, many countries and areas have been doing proactive
financial and monetary activities so economy all over the world was trend to expand. However resource
prices such as crude oil increased and supply chains delayed due to the high rapid demand. So
uncertainty for future was increasing.
In Japanese economy, some manufacturer were recovering but economic activities were very low
because raw material prices increased and to procure components was difficult.
Under these circumstances, in Dental product segment, which is our main segment, Domestic sales in
1st quarter were good but itʼs been steady gradually but other areas sales increased. Industrial productsegment and Other businesses sales increased as well. Total sales increased by 50.2%.
On the other hand, freight increased because sales increased and cost increased but advertisement
and travel expenses increased just a little so Selling, general and administrative expenses increased by
15.2%. Operating income increased by 117.2%.
As a result, the Group sales were ¥33,469,106 thousand (+50.2% year on year), operating income
was ¥11,113,769 thousand (+117.2%), ordinary income was \11,266,259 thousand (+112.4%) andincome attributable to owners of parent for the quarter was ¥8,096,069 thousand (+107.9%).
The following is a breakdown of business performance by segment.
（Dental Products）
In Dental Products, in 1st quarter Domestic sales increased dramatically thanks to subsidy fromgovernment etc. but itʼs been steady gradually. Europe, North America and Asia sales increased as well.
Total dental sales increased dramatically. Segment profit increased as well.
As a result, sales were \ 29,693,684 thousand (+53.7%) and segment profit was \ 13,058,419
thousand (+79.7 %).
（Industrial Products）
In Industrial Products, Asia sales increased dramatically (+50.0％). Domestic, Europe and North
America sales increased as well. Total industrial sales increased. Segment profit increased as well.
As a result, sales were \2,616,486 thousand (+29.2%) and segment profit was \989,088 thousand(+34.7%).
(Other Businesses)
In Other Businesses, which are repair services, sales were \1,158,935 thousand (+23.8%) andsegment profit was \173,679 thousand (+114.8%).
(2) Explanation of Financial Position(Assets, liabilities and net asset)
Total assets at the end of 3rd quarter were \89,997,659 thousand and increased by \7,526,918
thousand compared with the end of the previous fiscal year. The main reasons were that Cash anddeposits increased by \3,441,314 thousand and Investment securities increased by ¥1,745,668
thousand.
Total liabilities were \8,367,296 thousand and increased by \2,168,631 thousand compared with theend of the previous fiscal year. The main reason was Other in current liabilities increased by ¥1,497,271
thousand.
Net asset was \ 81,630,362 thousand and increased by \5,358,287 compared with the end of theprevious fiscal year. The main reason was that Retained earnings increased by ¥5,323,053 thousand.

－ 4 －(3)Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information
Currently we will not change the forecast announced on April 6, 2021.

－ 5 －2. Consolidated Quarterly Financial Statements and Principal Notes(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
As of December 31, 2020

As of September 30, 2021

32,238,337
5,158,047
1,433,277
4,129,321
4,487,638
3,506,289
2,610,225
870,939-90,537
54,343,539

35,679,652
5,143,766
1,743,644
4,342,071
5,144,289
3,369,854
2,481,480
1,664,359-64,894
59,504,225

15,302,136
6,681,859
4,970,635
1,989,815
219,356-14,273,115
14,890,687

15,391,750
7,118,617
5,177,079
2,022,358
401,521-15,426,373
14,684,954

346,531
373,414161,259
224,275
1,105,481

378,271
335,010
121,710330,061
1,165,054

6,292,232
2,870,068
2,179,870
0145,102645,150-1,393
12,131,032
28,127,201
82,470,741

8,037,901
3,206,239
2,189,435－
563,281
648,015-1,447
14,643,425
30,493,433
89,997,659

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Money held in trust
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 and equipment
Intangible assets
Software
Software in progress
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
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 －(Thousands of yen)
As of December 31, 2020

As of September 30, 2021

806,981
100,000
1,663,099
385,000
2,458,292
5,413,373

1,088,222
100,000
1,807,753
619,500
3,955,564
7,571,039

313,704
273,079
198,508785,292
6,198,665

308,520
286,490
201,245796,257
8,367,296

867,948
1,180,482
77,435,739-5,593,711
73,890,460

867,948
1,180,482
82,758,793-6,076,880
78,730,344

2,284,166

2,138,035-94,595

525,871

2,189,571

2,663,907

189,688
2,355
76,272,075
82,470,741

232,552
3,558
81,630,362
89,997,659

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
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 income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets－ 7 －(2) Consolidated Quarterly Statements of Income and Comprehensive Income(Consolidated Quarterly Statements of Income)(Thousands of yen)
Nine months ended
September 30, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on investments in money held in trust
Subsidy income
Share of profit of entities accounted for using
equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in money held in trust
Commission expenses
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent－ 8 －Nine months ended
September 30, 2021

22,281,397
9,039,425
13,241,971
8,125,252
5,116,719

33,469,106
12,995,253
20,473,852
9,360,083
11,113,769

75,46927,960－83,50359,48526,945
161,570
32,133－

226,361

121,535
308,469

90,730597,227

2,763
17,157－73,27928,407
121,608
5,303,579

2,589
－
2,489
422,043
17,614
444,737
11,266,259

1,862
－
1,862

－
17,087
17,087

315
3,396
3,712
5,301,730
1,481,498-73,996
1,407,501
3,894,228
351
3,893,876

－
312
312
11,283,034
3,542,981-357,132
3,185,848
8,097,185
1,116
8,096,069

(Consolidated Quarterly Statements of Comprehensive Income)(Thousands of yen)
Nine months ended
September 30, 2020
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 －Nine months ended
September 30, 2021

3,894,228

8,097,185-48,310-146,131-28,748-77,058
3,817,169

620,553474,422
8,571,607

3,817,619

8,570,405

-449

1,202

(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】
3rd quarter ended September 30, 2020 (From January 1, 2020 to September 30, 2020)(Thousands of yen)Per

Reportable segments
DentalIndustrial

products

products

OthersReportablesegments

Reconciling
items

quarterly
consolidated financial
statements

Sales
Revenues
fromexternal

19,320,410

2,024,554

936,432

22,281,397－

22,281,397

－

－

－

－

－

－

19,320,410

2,024,554

936,432

22,281,397－

22,281,397

7,265,120

734,500

80,8588,080,479-2,963,759

5,116,719

customers
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 －

3rd quarter ended September 30, 2021 (From January 1, 2021 to September 30, 2021)(Thousands of yen)Per

Reportable segments
DentalIndustrial

products

products

OthersReportablesegments

Reconciling
items

quarterly
consolidated financial
statements

Sales
Revenues
fromexternal

29,693,684

2,616,486

1,158,935

33,469,106－

33,469,106

－

－

－

－

－

－

29,693,684

2,616,486

1,158,935

33,469,106－

33,469,106

13,058,419

989,088

173,679

14,221,187-3,107,418

11,113,769

customers
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.

－ 12 －