Flash Report for 1st quarter Ended March 31, 2021
(on a consolidated basis) [Japan GAAP]May 7, 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: May 10, 2021
Scheduled date to begin dividend payments: Supplementary materials to quarterly financial statements: Not available
Quarterly earnings results briefing: Not available(All amounts are rounded down to the nearest million yen.)
1. Consolidated financial results for 1st quarter period (January 1 to March 31, 2021)(1) Operating Results
Millions of yen
Net sales

Operating income

Ordinary income

1st quarter ended March 31, 2021

11,337

55.4%

3,675

231.3%

4,113

641.2%

1st quarter ended March 31, 2010

7,296

-11.8%

1,109-38.7%

555-74.0%

Incomeattributable toowners of parent

Earnings per share(yen)Diluted EPS (yen)

1st quarter ended March 31, 2021

3,074

595.3%35.48

35.41

1st quarter ended March 31, 2020

442

-72.6%

5.10

5.09

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:
1st quarter ended March 31, 2021

3,764 million (－%)

1st quarter ended March 31, 2020

-704 million (－%)

(2) Financial Position
Millions of yen
Total assets

Net assets

Equity ratio

As of March 31, 2021

85,69578,736

91.7%

As of December 31, 2020

82,47076,272

92.3%

Note: Ownersʼ equity As of March 31, 2021
As of December 31, 2020

78,544 million
76,080 million－ 1 －2. Dividends
Cash dividends per share (yen)
1st quarter2nd quarter

1st quarter

Year-end

AnnualYear ended December 31, 2020

̶

15.00

̶

15.00

30.00

Year ending December 31, 2021

̶
17.00

̶

17.00

34.00

Year ending December 31, 2021
(forecast)
Notes:

1.

Revisions to dividend payment forecasts during the period: Applicable

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

Operatingattributable toincome

Ordinary income owners of parent

First-half period

19,792

44.6%

5,685 137.6%

Full year

37,559

13.6%

9,987

Notes:

6,183 148.3%

16.9% 10,700

24.0%

Earnings pershare (yen)4,579 146.4%

52.85

7,859

90.70

1.

Percentage figures represent year-on-year comparisons.

2.

Revisions to performance forecasts during the period: Applicable

21.8%

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 financialstatements: 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, 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 March 31, 2021:

7,602,686 shares

As of December 31, 2020:

7,602,642 shares

Average number of shares during the period
1st quarter ended March 31, 2021: 86,656,741 shares
1st quarter ended March 31, 2020: 86,644,793 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-LookingInformation
2. Consolidated Quarterly Financial Statements and Principal Notes

56(1) Consolidated Quarterly Balance Sheets

6(2) Consolidated Quarterly Statements of Income and Comprehensive Income8(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, many countries and areas have been doing proactive
financial and monetary activities so economy all over the world was recovering, especially in the US andChina. However in Europe and other countries, consumption was still low and uncertainty for future wasincreasing due to re-lockdown by coronavirus pandemic.
In Japanese economy, some manufacturer were recovering but economic activities were very low,
especially food service industry and travel industry due to re-state of emergency.
Under these circumstances, in Dental product segment, which is our main segment, Domestic sales
increased dramatically thanks to subsidy from government etc. and other areas sales increased as well.
On the other hand, Selling, general and administrative expenses increased just a little because freightincreased but advertisement and travel expenses deceased.
As a result, the Group sales were ¥11,337,537 thousand (+55.4% year on year), operating income
was ¥3,675,954 thousand (+213.3%), ordinary income was \4,113,714 thousand (+641.2%) andincome attributable to owners of parent for the quarter was ¥3,074,812 thousand (+595.3%).
The following is a breakdown of business performance by segment.
（Dental Products）
In Dental Products, Domestic sales increased dramatically thanks to subsidy from government etc.,
and Europe, North America and Asia sales increased as well. Total dental sales increased. Segment
income increased as well.
As a result, sales were \10,146,915 thousand (+63.6%) and segment income was \ 4,397,269
thousand (+133.2%).
（Industrial Products）
In Industrial Products, Domestic, Europe and North America sales decreased but Asia sales increased
dramatically. Total industrial sales increased. Segment income increased as well.
As a result, sales were \801,731 thousand (+7.3%) and segment income was \284,781 thousand(+5.2%).
(Other Businesses)
In Other Businesses, which are repair services, sales were \388,890 thousand (+12.6%) and segment
income was \66,035 thousand (+95.6%).
(2) Explanation of Financial Position(Assets, liabilities and net asset)
Total assets at the end of 1st quarter were \ 85,695,247 thousand and increased by \ 3,224,506
thousand compared with the end of the previous fiscal year. The main reasons were that Cash anddeposits increased by \2,272,838 thousand and Notes and accounts receivable - trade increased by¥ 635,103 thousand.
Total liabilities were \6,958,414 thousand and increased by \759,748 thousand compared with theend of the previous fiscal year. The main reason were that Income taxes payable decreased by¥422,030 thousand and Other in current liabilities increased by ¥607,532 thousand and Accounts
payable - trade increased by ¥334,555 thousand.
Net asset was \ 78,736,833 thousand and increased by \ 2,464,757 compared with the end of theprevious fiscal year. The main reason were that Retained earnings increased by ¥1,774,961 thousand
and Foreign currency translation adjustment ¥630,004 thousand.

－ 4 －(3)Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information
Our company will revise our business performance forecasts it released on February 12, 2021.
The following table shows our forecasts of business performance for the fiscal year 2021.
First-half periodThe amount%Sales\19,792 million

44.

Operating income\5,685 million

137.6

Ordinary profit\6,183 million

148.3\4,579 million

146.4

Net income attributable toowners of parent
Full year

The amount%Sales\37,559 million

13.6

Operating income\9,987 million

16.9

Ordinary profit\10,700 million

24.0\7,859 million

21.8

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, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits

32,238,337

34,511,176

Notes and accounts receivable - trade5,158,047

5,793,151

Securities

1,433,277

1,491,589

Money held in trust

4,129,321

4,301,021

Merchandise and finished goods

4,487,638

4,655,903

Work in process

3,506,289

3,370,942

Raw materials and supplies

2,610,225

2,418,605

Other

870,939

747,764

Allowance for doubtful accounts-90,537-69,408

54,343,539

57,220,745

Buildings and structures

15,302,136

15,377,316

Machinery, equipment and vehicles

6,681,859

6,783,179

Tools, furniture and fixtures

4,970,635

5,095,796

Land

1,989,815

2,018,689

Construction in progress

219,356

180,873

Accumulated depreciation-14,273,115-14,667,274

Total property, plant and equipment

14,890,687

14,788,581

Software346,531430,275

Software in progress

373,414265,381Goodwill

161,259

148,523

Other

224,275

213,727

1,105,481

1,057,907

Investment securities

6,292,232

6,393,235

Shares of subsidiaries and associates

2,870,068

3,123,611

Insurance funds

2,179,870

2,189,727

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Total intangible assets
Investments and other assets

Retirement benefit asset

0－

Deferred tax assets

145,102

268,702

Other

645,150

654,146-1,393-1,411

12,131,032

12,628,012

28,127,201

28,474,501

82,470,741

85,695,247

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 March 31, 2021

Liabilities
Current liabilities
Accounts payable - trade

806,981

1,141,536

Short-term borrowings

100,000

100,000

Income taxes payable

1,663,099

1,241,068

Provision for bonuses

385,000

616,500

Other

2,458,292

3,065,825

Total current liabilities

5,413,373

6,164,930

Retirement benefit liability

313,704

313,153

Deferred tax liabilities

273,079

288,934

Other

198,508

191,397

Total non-current liabilities

785,292

793,484

6,198,665

6,958,414

867,948867,948

Non-current liabilities

Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

1,180,482

1,180,482

Retained earnings77,435,739

79,210,701

Treasury shares-5,593,711-5,593,803

Total shareholders' equity

73,890,460

75,665,328

2,284,166

2,343,849-94,595

535,408

2,189,571

2,879,258

Share acquisition rights

189,688

189,688

Non-controlling interests

2,355

2,556

76,272,075

78,736,833

82,470,741

85,695,247

Accumulated other comprehensive income
Valuation difference on available-forsale securities
Foreign currency translation
adjustment
Total accumulated other comprehensive
incomeTotal 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)Three months ended

Three months ended

March 31, 2020

March 31, 2021

Net sales

7,296,533

11,337,537

Cost of sales

3,176,994

4,608,552

Gross profit

4,119,538

6,728,984

Selling, general and administrative expenses

3,010,019

3,053,029

Operating profit

1,109,519

3,675,954

Interest income

39,985

17,341Dividend income

32－

123,01231,01832,133－56,399－187,398

Miscellaneous income

50,81725,072

Total non-operating income

121,825

441,360

3,977

962

255,817－

411,424

－

5,082

2,638

676,301

3,601

555,043

4,113,714

Gain on sales of investment securities－

17,087

Total extraordinary income－

17,087

Loss on retirement of non-current assets

0183

Total extraordinary losses

0183

Profit before income taxes

555,043

4,130,617

Income taxes - current

321,695

1,202,322

Income taxes - deferred-209,077-146,776

Total income taxes

112,618

1,055,546

Profit442,424

3,075,071

Non-operating income

Gain on investments in money held in
trust
Subsidy income
Share of profit of entities accounted forusing equity method
Foreign exchange gains

Non-operating expenses
Interest expenses
Loss on investments in money held intrust
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent－ 8 －203

258

442,220

3,074,812

(Consolidated Quarterly Statements of Comprehensive Income)(Thousands of yen)Three months ended

Three months ended

March 31, 2020

March 31, 2021

Profit442,424

3,075,071-594,854

59,682-551,973

629,947-1,146,827

689,629-704,402

3,764,701-704,015

3,764,499

-386

201

Other 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 －(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, 2020 (From January 1, 2020 to March 31, 2020)(Thousands of yen)Per

Reportable segments
DentalIndustrial

products

products

OthersReportablesegments

Reconciling
items

quarterly
consolidated financial
statements

Sales
Revenues
fromexternal

6,203,856

747,243

345,433

7,296,533－

7,296,533－－－－－－

6,203,856

747,243

345,433

7,296,533－

7,296,533

1,885,717

270,685

33,762

2,190,165-1,080,646

1,109,519

customers
Transactions
with othersegments
Net sales
Operatingprofit (loss)

Notes:

1.

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

2.

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

－ 11 －

1st quarter ended March 31, 2021 (From January 1, 2021 to March 31, 2021)(Thousands of yen)Per

Reportable segments
DentalIndustrial

products

products

OthersReportablesegments

Reconciling
items

quarterlyconsolidated financial
statements

Sales
Revenues
fromexternal

10,146,915

801,731

388,890

11,337,537－

11,337,537

－

－－－－

－

10,146,915

801,731

388,890

11,337,537－

11,337,537

4,397,269

284,781

66,035

4,748,085-1,072,131

3,675,954

customers
Transactions
with othersegments
Net sales
Operatingprofit (loss)
Notes:

1.

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

2.

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

－ 12 －