Flash Report for Fiscal year Ended December 31, 2021
(on a consolidated basis) [Japan GAAP]
February 9, 2022
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 & Group CFO

Tel: +81-289-64-3380

Scheduled date to submit Securities Report: March 30, 2022
Scheduled date to begin dividend payments: March 31, 2022
Supplementary materials to financial statements: Not available
Earnings results briefing: Applicable (for institutional investors and securities analysts)(All amounts are rounded down to the nearest million yen.)
1. Consolidated financial results for Fiscal year period (January 1 to December 31, 2021)(1) Operating Results
Millions of yen
Net sales

Operating income

Ordinary income

Fiscal year ended December 31, 2021

44,85735.7%

13,75061.0%

13,951

61.7%

Fiscal year ended December 31, 2020

33,055

-6.7%

8,542

-8.1%

8,627

-12.3%

Incomeattributable toowners of parent

Earnings per share(yen)

Diluted EPS (yen)Fiscal year ended December 31, 2021

10,102

56.5%

116.73116.47

Fiscal year ended December 31, 2020

6,455

-9.1%

74.49

74.34

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:
Fiscal year ended December 31, 2021

10,577 million (63.8%)

Fiscal year ended December 31, 2020

6,459 million (-20.3%)(2) Financial Position
Millions of yen
Total assets

Net assets

Equity ratio

As of December 31, 2021

94,46082,91987.5%

As of December 31, 2020

82,47076,272

92.3%

Note: Ownersʼ equity As of December 31, 2021

82,683 million

As of December 31, 2020

76,080 million－ 1 －2. Dividends
Cash dividends per share (yen)
1st quarter2nd quarter 3rd quarter

Year-end

AnnualYear ended December 31, 2020

̶

15.00

̶

15.00

30.00

Year ending December 31, 2021

̶

17.00

̶

20.00

37.00

̶

20.00

̶

20.00

40.00

Year ending December 31, 2022
(forecast)

3. Business Performance Forecasts for the Current Term (January 1 to December 31, 2022)
Millions of yen
IncomeEarnings per

Operatingattributable to

Net sales

incomeOrdinary income owners of parent

First-half period

19,749 -14.2%

4,789 -37.4%

4,849 -34.7%

3,418 -36.3%

39.68

Full year

41,244

10,678 -22.3% 11,122 -20.3%

7,824 -22.5%

90.81

Notes:

1.

-8.1%

share (yen)Percentage figures represent year-on-year comparisons.

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 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 December 31, 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 December 31, 2021:

8,094,386 shares

As of December 31, 2020:

7,602,642 shares

Average number of shares during the period
Fiscal year ended December 31, 2021: 86,546,716 sharesFiscal year ended December 31, 2020: 86,653,772 shares* This flash report is out of scope of audit
.

－ 2 －

Table of Contents
1. Qualitative Information on Financial Results

4(1) Explanation of Results of Operations

4(2) Explanation of Financial Position

4(3) Explanation of Cash flows

5(4) Future Outlook

5

2. Consolidated Financial Statements and Principal Notes

6(1) Consolidated Balance Sheets

6(2) Consolidated Statements of Income and Comprehensive Income

8(Consolidated Statements of Income)

8(Consolidated Statements of Comprehensive Income)9(3) Consolidated Statements of Changes in Net Assets

10(4) Consolidated Statements of Cash Flows

12(5) Notes to Consolidated Financial Statements

14(Notes to Going Concern Assumption)

14(Segment Information）

15

－ 3 －

1. Qualitative Information on Financial Results(1) Explanation of Results of Operations
In the world economy during the fiscal year, 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 35.7%.
On the other hand, freight increased because sales increased and cost increased but Selling, generaland administrative expenses increased by 21.1%. Operating income increased by 61.0%.
As a result, the Group sales were ¥44,857,730 thousand (+35.7% year on year), operating income
was ¥13,750,434 thousand (+61.0%), ordinary income was \13,951,666 thousand (+61.7%) andincome attributable to owners of parent was ¥ 10,102,609 thousand (+56.5 %).
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 \39,645,299 thousand (+36.6%) and segment profit was \16,724,982
thousand (+46.4%).
（Industrial Products）
In Industrial Products, Asia sales increased dramatically (+58.0％). Domestic, Europe and North
America sales increased as well. Total industrial sales increased. Segment profit increased as well.
As a result, sales were \3,664,362 thousand (+33.7%) and segment profit was \1,342,793 thousand(+38.3%).
(Other Businesses)
In Other Businesses, which are repair services, sales were \1,548,069 thousand (+20.1%) andsegment profit was \ 169,726 thousand (+39.6%).
(2) Explanation of Financial Position(Assets, liabilities and net asset)
Total assets at the end of Fiscal year were \ 94,460,919 thousand and increased by \11,990,178
thousand compared with the end of the previous fiscal year. The main reasons were that Cash anddeposits increased by \3,746,002 thousand and Investment securities increased by ¥2,399,924
thousand.
Total liabilities were \11,541,446 thousand and increased by \5,342,780 thousand compared with theend of the previous fiscal year. The main reason were Other in current liabilities increased by¥3,587,561 thousand and Income taxes payable increased by ¥866,731.
Net asset was \82,919,473 thousand and increased by \6,647,397 compared with the end of theprevious fiscal year. The main reason were that Retained earnings increased by ¥7,329,593 thousand
and Treasury shares increased by ¥1,200,092 thousand.

－ 4 －(3) Explanation of Cash flows
The balance of cash and cash equivalents on a consolidated basis as of the end of the fiscal year was¥34,887,816 thousand, up ¥4,843,045 thousand from the previous term-end.
Net cash provided by operating activities was ¥11,970,529 thousand, compared with ¥9,183,986
thousand a year earlier. The main factor here was an increase of cash due to the recording of income
before income taxes and minority interests of ¥13,937,629 thousand, which outweighed income taxes
paid of ¥3,605,900 thousand.
Net cash provided by investing activities was ¥-4,146,968 thousand, compared with ¥ -1,380,698
thousand a year earlier. The main expenditure were Purchase of investment securities \4,341,680
thousand and Purchase of tangible fixed assets ¥1,768,897 thousand.
Net cash provided used in financing activities was ¥-3,973,487 thousand, compared with¥-2,685,794 thousand a year earlier. The main expenditure were Cash dividends paid ¥2,773,394
thousand and Purchase of treasury shares ¥1,200,092 thousand.
(4) Future Outlook
Regarding the future outlook, it is expected that unclear business circumstances will continue because
prices like crude oil are increasing and semiconductor materials are lacking.
Under such severe business environment, our group will promote comprehensive efforts to enhancethe organizational structure which enables us to survive fierce global competition, keeping a close lookon the conditions of the global economy and markets.
For fiscal year 2022, we have assumed an exchange rate of \106 to U.S. dollar and \123 to Euro.
The following table shows our forecasts of business performance for the fiscal year 2022.
The amount

%

Sales

\41,244 million-8.1

Operating income\10,678 million-22.3

Ordinary profit\11,122 million-20.3\7,824 million-22.5

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

－ 5 －2. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Thousands of yen)
As of December 31,
2020
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 andequipment
Intangible assets
Software
Software in progress
Goodwill
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 December 31,
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

35,984,340
5,348,771
1,422,099
4,341,163
5,822,666
3,286,853
2,623,642
1,382,650-60,452
60,151,734

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

15,431,241
7,486,174
5,205,578
2,033,155
962,539-15,825,871

14,890,687

15,292,817

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

377,341
320,598
108,442
538,570
1,344,953

6,292,232

8,692,157

2,870,068

4,866,102

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

2,122,292－
940,349
1,051,965-1,452
17,671,414
34,309,185
94,460,919

(Thousands of yen)
As of December 31,
2020
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
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 December 31,
2021

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

1,009,312
100,000
2,529,830
909,596
6,045,854
10,594,594

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

342,260
412,271
192,319
946,851
11,541,446

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

867,948
1,180,482
84,765,333-6,793,803
80,019,961

2,284,166

1,843,974-94,595

819,197

2,189,571

2,663,172

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

232,552
3,786
82,919,473
94,460,919

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)
Fiscal year ended
December 31, 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
Reversal of allowance for doubtful
accounts
Share of profit of entities accounted forusing equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Commission expenses
Provision of allowance for doubtful
accounts
Share of loss of entities accounted forusing equity method
Foreign exchange losses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current
assetsLoss on valuation of investment
securities
Total 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 －Fiscal year ended
December 31, 2021

33,055,477
13,324,152
19,731,324

44,857,730
17,562,599
27,295,131

11,189,174

13,544,697

8,542,150

13,750,434

87,27245,45379,082
46,27857,854160,465

83,50332,133

1,256

－

－

284,155

172,912448,252

154,114756,230

3,814
3,467

3,382
9,829

－

58

17,745－

293,478
44,134
362,640
8,627,762

496,40245,324554,997
13,951,666

1,867
503,821505,688－
17,087
17,087

444

－

3,405

31,12466,750－70,6009,062,851
2,841,160-233,961
2,607,199
6,455,652

31,124
13,937,629
4,439,352-605,668
3,833,684
10,103,944

597

1,335

6,455,054

10,102,609

(Consolidated Statements of Comprehensive Income)(Thousands of yen)
Fiscal year ended
December 31, 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 －Fiscal year ended
December 31, 2021

6,455,652

10,103,944-316,072-440,192

319,4533,380
6,459,032

913,888473,696
10,577,641

6,459,118

10,576,209

-85

1,431

(3) Consolidated Statements of Changes in Net Assets
Fiscal year ended December 31, 2020
(Thousands of yen)
Shareholders' equity
Capital stock

Capital surplus

867,948

1,171,507

Net assets

Retainedearnings
73,666,853

Treasury shares-5,602,470

Shareholders'equity70,103,839

Changes of items during
periodDividends of surplus-2,686,168-2,686,168

6,455,054

6,455,054

Profit (loss)
attributable to ownersof parent
Purchase of treasury
shares
Disposal of treasury

8,975

shares

-69

-69

8,829

17,804

Net changes of items
other thanshareholders' equity
Total changes of items

－

8,975

3,768,886

8,759

3,786,620

867,948

1,180,482

77,435,739-5,593,711

73,890,460

during period
Net assets

Accumulated other comprehensive income
Valuationdifference

Foreignoncurrency

available-translation

for-saleadjustment

securities
Net assets

2,600,239-414,731

Valuationandtranslation
adjustment

Share

Non-

acquisition

controllingrightsinterests

Net assets

s2,185,508

207,4812,440

72,499,269

Changes of items during
periodDividends of surplus-2,686,168

Profit (loss)
attributable to owners

6,455,054

of parent
Purchase of treasury-69

shares
Disposal of treasury

17,804

sharesNet changes of items
other than-316,072

320,136

4,063-17,792-85-13,814-316,072

320,136

4,063-17,792-85

3,772,806

2,284,166-94,595

2,189,571

189,688

2,355

76,272,075

shareholders' equity
Total changes of items
during period
Net assets－ 10 －

Fiscal year ended December 31, 2021
(Thousands of yen)
Shareholders' equity
Retained

Capital stock

Capital surplus

867,948

1,180,482

Net assets

Treasury sharesearnings
77,435,739-5,593,711

Shareholders'equity73,890,460

Changes of items during
periodDividends of surplus-2,773,015-2,773,015

10,102,609

10,102,609

Profit (loss)
attributable to ownersof parent
Purchase of treasury
shares-1,200,092-1,200,092

Net changes of items
other thanshareholders' equity
Total changes of items－－

7,329,593-1,200,092

6,129,501

867,948

1,180,482

84,765,333-6,793,803

80,019,961

during period
Net assets

Accumulated other comprehensive income
Valuationdifferenceon

Foreigncurrency

available-translation

for-saleadjustment

securities
Net assets

2,284,166-94,595

Valuationandtranslation
adjustment

Share

Non-

acquisition

controllingrightsinterests

Net assets

s2,189,571

189,688

2,355

76,272,075

Changes of items during
periodDividends of surplus-2,773,015

Profit (loss)
attributable to owners

10,102,609

of parent
Purchase of treasury-1,200,092

sharesNet changes of items
other than

-440,192

913,792

473,600

42,864

1,431

517,896-440,192

913,792

473,600

42,864

1,431

6,647,397

1,843,974

819,197

2,663,172

232,552

3,786

82,919,473

shareholders' equity
Total changes of items
during period
Net assets－ 11 －

(4) Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal year ended
December 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in provision forbonuses
Increase (decrease) in retirement
benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities
accounted for using equity method
Loss (gain) on investments in money
held in trust
Loss (gain) on sale of investment
securities
Loss (gain) on valuation of investment
securities
Loss (gain) on sale of property, plantand equipment
Loss on retirement of property, plantand equipment
Subsidy income
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Foreign exchange losses (gains)
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Subsidies received
Net cash provided by (used in)operating activities－ 12 －

Fiscal year ended
December 31, 2021

9,062,851
1,759,152
49,624

13,937,629
1,807,907
54,561

3,145-33,477

16,100524,596-1,64825,317-132,725
3,814-125,361
3,382

17,745-284,155-57,854-160,465-503,821-17,087

66,750－-1,422－

3,405

31,124-83,503
40,057-104,446
29,041
180,723
346,270
10,693,259
124,828-3,812-1,713,792
83,503-32,133-2,404-837,027-70,825-1,125,915
1,631,950
15,327,616
220,063-3,382-3,605,900
32,1339,183,986

11,970,529

(Thousands of yen)
Fiscal year ended
December 31, 2020
Cash flows from investing activities
Proceeds from sale and redemption of
securities
Purchase of property, plant andequipment
Proceeds from sale of property, plantand equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale and redemption of
investment securities
Purchase of shares of Affiliated company
Purchase of investments in nonconsolidated subsidiary
Payments into time deposits
Proceeds from withdrawal of time
deposits
Purchase of insurance funds
Proceeds from cancellation of insurance
funds
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Proceeds from exercise of subscription
rights to shares
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash
and cash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period－ 13 －

Fiscal year ended
December 31, 2021

180,190700,000-862,775-1,768,897

1,563

－

-328,962－-582,958-4,341,680

1,235,495

945,291-2,666,750－-10,013－-5,023,724-4,369,139

6,566,625

5,602,868-20,828-38,810－

98,226-451,518-391,867-1,380,698-4,146,968

12

－

-69
-2,685,736-1,200,092-2,773,394-2,685,794-3,973,487

257,476992,971

5,374,970

4,843,045

24,669,800

30,044,771

30,044,771

34,887,816

(5）Notes to Consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable.

－ 14 －

(Segment Information）【Segment Information】
Fiscal year ended December 31, 2020 (From January 1, 2020 to December 31, 2020)(Thousands of yen)Per

Reportable segments
Reportable

Reconcilingconsolidate

items

d financial

DentalIndustrial

products

products

29,025,567

2,740,679

1,289,230

33,055,477－

33,055,477

－

－

－

－

－

－

29,025,567

2,740,679

1,289,230

33,055,477－

33,055,477

11,422,197

971,027

121,538

12,514,763-3,972,612

8,542,150

Otherssegments

statements

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.

－ 15 －

Fiscal year ended December 31, 2021 (From January 1, 2021 to December 31, 2021)(Thousands of yen)Per

Reportable segments
Reportable

Reconcilingconsolidate

items

d financial

DentalIndustrial

products

products

39,645,299

3,664,362

1,548,069

44,857,730－

44,857,730

－

－

－

－

－

－

39,645,299

3,664,362

1,548,069

44,857,730－

44,857,730

16,724,982

1,342,793

169,726

18,237,501-4,487,067

13,750,434

Otherssegments

statements

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.

－ 16 －