Flash Report for 1st quarter Ended March 31, 2023
(on a consolidated basis) [Japan GAAP]May 12, 2023
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 15, 2023
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, 2023)(1) Operating Results
Millions of yen
Net sales

EBITDA

Operating income

1st quarter ended March 31, 2023

13,615

13.6%

4,698

8.5%

4,041

4.0%

1st quarter ended March 31, 2022

11,981

5.7%

4,329

－

3,886

5.7%

Millions of yen
Income attributable

Ordinary income

to owners of parent

Earnings
per share(yen)

DilutedEPS (yen)

1st quarter ended March 31, 2023

4,597

5.1%

3,305

5.2%

38.83

38.73

1st quarter ended March 31, 2022

4,374

6.3%

3,142

2.2%

36.50

36.41

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, 2023

3,911 million (-5.9%)

1st quarter ended March 31, 2022

4,156 million (10.4%)

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

Net assets

Equity ratio

As of March 31, 2023

103,008

92,356

89.4%

As of December 31, 2022

102,154

91,02288.8%

Note: Ownersʼ equity As of March 31, 2023
As of December 31, 2022

92,070 million
90,737 million－ 1 －2. Dividends
Cash dividends per share (yen)
1st quarter
Year ending December 31, 2022

̶Year ending December 31, 2023

̶Year ending December 31, 2023
(forecast)
Notes:

1.

2nd quarter 3rd quarter

Year-end

Annual

22.00

̶

24.00

46.00

24.00

̶

24.00

48.00

Revisions to dividend payment forecasts during the period: Not applicable

3. Business Performance Forecasts for the Current Term (January 1 to December 31, 2023)
Millions of yen
IncomeNet sales

Operatingattributable toincomeOrdinary income owners of parent

Earnings per
share (yen)First-half period

25,556

4.5

7,616

-6.3

7,892

-16.8

5,461

-19.1

64.14

Full year

52,272

7.4

15,070-2.1

15,836-10.3

10,976-12.0

128.91

Notes:

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, 2023:

94,259,400 shares

As of December 31, 2022:

94,259,400 shares

Number of shares of treasury stock at the end of the period
As of March 31, 2023:

9,285,653 shares

As of December 31, 2022:

9,105,053 shares

Average number of shares during the period
1st quarter ended March 31, 2023: 85,114,760 shares
1st quarter ended March 31, 2022: 86,098,948 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, inflation is almost getting to the peak but CPI is still high.
There are some uneasy due to the bankrupt of Silicon Valley Bank and Credit Suisse. So uncertainty forthe future is increasing.
In Japanese economy, capital investments keep steady about manufacturing industry. About nonmanufacturing industry, demands on outdoor business are increasing thanks to recovery from COVID19 pandemic. However there is shortage of manpower.
Under these circumstances, all 3 segments sales increased. EBITDA increased as well.
By the way, our company introduced EBITDA (Operating income + Depreciation + Goodwill
amortization) for KPI at the beginning of 2023.
As a result, the Group sales were ¥13,615,683 thousand (+13.6% year on year), EBITDA \4,698,020
thousand (+8.5%), operating income was ¥4,041,903 thousand (+4.0%), ordinary income was\4,597,039 thousand (+5.1%) and income attributable to owners of parent for the quarter was¥3,305,092 thousand (+5.2%).
The following is a breakdown of business performance by segment.
（Dental segment）
In Dental segment, North America sales decreased but Domestic, Europe and Asia sales increased.
Segment EBITDA was increased as well.
As a result, sales were \ 10,809,389 thousand (+7.1%) and segment EBITDA was \4,804,484
thousand (+9.1%).
(Surgical segment)
In Surgical segment, North America and Europe sales decreased but Domestic and Asia sales
increased. Total sales increased. Segment EBITDA decreased a little.
As a result, sales were \ 813,165 thousand (+2.5%) and segment EBITDA was \413,284 thousand (2.7%).
（Industrial segment）
In Industrial segment, Europe sales increased by 5 times because our company acquired Alfred Jäger
GmbH shares at the end of 2022. And Domestic, North America and Asia sales increased as well. Total
sales increased. Segment EBITDA increased as well.
As a result, sales were \ 1,993,128 thousand (+82.4 %) and segment EBITDA was \593,924
thousand (+46.3%).
(2) Explanation of Financial Position(Assets, liabilities and net asset)
Total assets at the end of 1st quarter were \103,008,799 thousand and increased by \854,339
thousand compared with the end of the previous fiscal year. The main reasons were that Money held in
trust decreased by \2,014,230 thousand but Cash and deposits increased by 1,283,230 \thousand andAccounts receivable – trade increased by \780,066 thousand.
Total liabilities were \10,652,331 thousand and decreased by \479,472 thousand compared with theend of the previous fiscal year. The main reason was that Income taxes payable decreased by\1,391,288 thousand.
Net asset was \92,356,468 thousand and increased by \1,333,812 thousand compared with the endof the previous fiscal year. The main reasons were that Retained earnings increased by ¥1,227,220
thousand and Foreign currency translation adjustment by ¥733,555 thousand.
－ 4 －(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information
We will not change the forecast announced on February 9, 2023. However, our company introduced
EBITDA (Operating income + Depreciation + Goodwill amortization) for KPI at the beginning of 2023,
adding EBITDA into forecast.
First-half period
The amount

%

Sales

\25,556 million

4.5

EBITDA\8,882 million-2.0

Operating income\7,616 million-6.3

Ordinary profit\7,892 million-16.8\5,461 million-19.1

Net income attributable toowners of parent
Full year

The amount

%

Sales

\52,272 million

7.4

EBITDA\17,603 million

0.6

Operating income\15,070 million-2.1

Ordinary profit\15,836 million-10.3\10,976 million-12.0

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, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
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 －As of March 31, 2023

34,992,939
89,402
6,017,059
1,186,445
2,014,230
7,167,378
4,799,134
4,317,667
2,056,477-91,139
62,549,596

36,276,170
130,572
6,797,126
1,300,295－
7,710,270
4,836,589
4,683,780
2,325,530-82,474
63,977,861

18,111,280
9,359,239
5,707,895
2,205,232
720,395-18,475,536
17,628,506

18,213,726
9,583,412
6,003,494
2,222,051
583,104-19,010,785
17,595,004

704,589
273,378
2,696,223
398,977
4,073,168

717,798
231,040
2,711,351
381,013
4,041,203

6,853,855
6,055,110
1,843,468
7,152
1,923,315
1,221,819-1,532
17,903,188
39,604,863
102,154,460

6,477,145
6,175,111
1,750,080－
1,812,716
1,181,239-1,563
17,394,729
39,030,938
103,008,799

(Thousands of yen)
As of December 31, 2022
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
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 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 －As of March 31, 2023

1,535,530
100,000
21,8432,764,786
983,394
4,441,744
9,847,300

1,836,225
2,100,000
22,4991,373,497
891,465
3,160,522
9,384,210

358,957
162,065579,708
183,772
1,284,503
11,131,804

364,127
163,508
570,760
169,724
1,268,120
10,652,331

867,948
1,180,482
93,628,490-9,293,944
86,382,977

867,948
1,180,482
94,855,711-9,793,759
87,110,382

1,403,982

1,276,089

2,950,583

3,684,138

4,354,565

4,960,227

278,685
6,427
91,022,656
102,154,460

278,685
7,172
92,356,468
103,008,799

(2) Consolidated Quarterly Statements of Income and Comprehensive Income(Consolidated Quarterly Statements of Income)(Thousands of yen)Three months ended
March 31, 2022
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 for using
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 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 －Three months ended
March 31, 2023

11,981,938
4,634,051
7,347,886
3,461,543
3,886,343

13,615,683
4,807,109
8,808,573
4,766,669
4,041,903

17,734
3－
35,927

61,156
4
11,28540,20125,752

155,774

447,068
60,943
587,428

227,51278,189574,123

288
83,782
2,535
13,007
99,614
4,374,157

1,256
3,166
2,028
12,53618,987
4,597,039

64,32064,320

1,990
1,990

31,069951
32,0204,406,457
1,284,509-21,105
1,263,404
3,143,053
430
3,142,622

188
2,936
3,124
4,595,905
1,134,530
155,760
1,290,290
3,305,614
522
3,305,092

(Consolidated Quarterly Statements of Comprehensive Income)(Thousands of yen)Three months ended
March 31, 2022
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, 2023

3,143,053

3,305,614-330,553-127,893

1,344,422
1,013,868
4,156,922

733,778
605,885
3,911,499

4,155,470

3,910,754

1,451

745

(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, 2022 (From January 1, 2022 to March 31, 2022)(Thousands of yen)Per

Reportable segments
DentalSurgicalIndustrial

Reportablesegment

segment

segment

segments

Reconciling
items

quarterly
consolidated financial
statements

Sales
Revenues
fromexternal

10,095,404

793,679

1,092,854

11,981,938－

11,981,938

－

－

－

－

－

－

10,095,404

793,679

1,092,854

11,981,938－

11,981,938

4,097,557

409,453

375,331

4,882,342-995,999

3,886,343

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 －

1st quarter ended March 31, 2023 (From January 1, 2023 to March 31, 2023)(Thousands of yen)Per

Reportable segments
DentalSurgicalIndustrial

Reportablesegment

segment

segment

segments

Reconciling
items

quarterly
consolidated financial
statements

Sales
Revenues
fromexternal

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

4,427,112

395,340464,215

5,286,668-1,244,764

4,041,903

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 －