Flash Report for 1st quarter Ended March 31, 2022
(on a consolidated basis) [Japan GAAP]May 12, 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, Finance & Accounting

Tel: +81-289-64-3380

Scheduled date to submit Securities Report: May 13, 2022
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 1st quarter period (January 1 to March 31, 2022)(1) Operating Results
Millions of yen
Operating income

Ordinary income

1st quarter ended March 31, 2022

11,981

Net sales
5.7%

3,886

5.7%

4,374

6.3%

1st quarter ended March 31, 2021

11,337

55.4%

3,675

231.3%

4,113

641.2%

Incomeattributable toowners of parent

Earnings per share(yen)Diluted EPS (yen)

1st quarter ended March 31, 2022

3,142

2.2%36.50

36.41

1st quarter ended March 31, 2021

3,074

595.3%

35.48

35.41

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, 2022

4,156 million (10.4%)

1st quarter ended March 31, 2021

3,764 million (－%)

(2) Financial Position
Millions of yen
Total assets

Net assets

Equity ratio

As of March 31, 2022

95,59384,85388.5%

As of December 31, 2021

94,46082,91987.5%

Note: Ownersʼ equity As of March 31, 2022
As of December 31, 2021

84,615 million
82,683 million－ 1 －2. Dividends
Cash dividends per share (yen)
1st quarter
Year ended December 31, 2021

̶Year ending December 31, 2022

̶

2nd quarter 3rd quarter

Year ending December 31, 2022
(forecast)
Notes:

1.

Year-end

Annual

17.00

̶

20.00

37.00

20.00

̶

20.00

40.00

Revisions to dividend payment forecasts during the period: Not applicable

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

Operatingattributable toincome

Ordinary income owners of parent

2nd quarter

23,0260.1%

6,546 -14.4%

Full year

45,7882.1%

12,606

Notes:Earnings pershare (yen)

7,095

-4.4%

5,062

-5.7%

58.75

-8.3% 13,587

-2.6%

9,621

-4.8%

111.661.

Percentage figures represent year-on-year comparisons.

2.

Revisions to performance forecasts during the period: 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.: 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, 2022:

94,259,400 shares

As of December 31, 2021:

94,259,400 shares

Number of shares of treasury stock at the end of the period
As of March 31, 2022:

8,336,032 shares

As of December 31, 2021:

8,094,386 shares

Average number of shares during the period
1st quarter ended March 31, 2022: 86,098,948 shares
1st quarter ended March 31, 2021: 86,656,741 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 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, CPI has increased thanks to demand increases by prompt
economic recover after pandemic. Unease of energy supply has increased due to the Russian invasion ofUkraine. So uncertainty for future was increasing.
In Japanese economy, economic activities were very low because raw material prices increased and toprocure components was difficult.
Under these circumstances, all 3 segments sales increased. Operating income increased as well.
As a result, the Group sales were ¥11,981,938 thousand (+5.7% year on year), operating income was¥3,886,343 thousand (+5.7%), ordinary income was \4,374,157 thousand (+6.3%) and income
attributable to owners of parent for the quarter was ¥3,142,622 thousand (+2.2%).
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 Products）
In Dental Products, Domestic sales decreased because the reaction that clinics received subsidy fromgovernment last year.
However North America, Europe and Asia sales increased. Total dental sales increased. Segment profit
was almost the same.
As a result, sales were \ 10,095,404 thousand (+2.9%) and segment profit was \ 4,097,557 thousand(-0.7%).
（Industrial Products）
In Industrial Products, Sales in all areas such as Domestic, North America, Europe and Asia increased.
Segment profit increased as well.
As a result, sales were \1,092,854 thousand (+28.9%) and segment profit was \375,331 thousand(+25.5%).
(Surgical Products)
In Surgical Products Europe and Asia sales decreased but Domestic and North America sales increased.
Total sales increased. Segment profit increased as well.
As a result, sales were \793,679 thousand (+16.6%) and segment profit was \409,453 thousand(+27.3%).
(2) Explanation of Financial Position(Assets, liabilities and net asset)
Total assets at the end of 1st quarter were \95,593,174 thousand and increased by \1,132,254
thousand compared with the end of the previous fiscal year. The main reasons were that Notes andaccounts receivable - trade by \776,951 thousand and Construction in progress by ¥722,340 thousand.
Total liabilities were \10,740,060 thousand and decreased by \801,385 thousand compared with theend of the previous fiscal year. The main reason was Income taxes payable decreased by ¥1,171,937
thousand.
Net asset was \84,853,113 thousand and increased by \1,933,640 compared with the end of theprevious fiscal year. The main reasons were that Retained earnings increased by ¥1,419,322 thousand
and Foreign currency translation adjustment by ¥1,343,401 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 9, 2022.
The following table shows our forecasts of business performance for the fiscal year 2022.
First-half period
The amount%Sales\23,026 million

0.1

Operating income\6,546 million-14.4

Ordinary profit\7,095 million-4.4\5,062 million-5.7

Net income attributable toowners of parent
Full year

The amount%Sales\45,788 million

2.1

Operating income\12,606 million-8.3

Ordinary profit\13,587 million-2.6\9,621 million-4.8

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,
2021
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
OtherAllowance for doubtful accounts
Total current assets
Non-current assetsProperty, 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
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－ 6 －As of March 31, 2022

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

34,094,934
6,125,723
1,327,874
4,356,398
6,275,909
3,361,370
3,147,551
1,611,367-76,559
60,224,569

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

15,455,880
7,637,032
5,292,314
2,071,886
1,684,879-16,194,322

15,292,817

15,947,671

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

352,428
632,538
98,536524,484
1,607,988

8,692,157

8,269,533

4,866,1025,118,896

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

2,130,837
1,207,062
1,088,111-1,497
17,812,944
35,368,604
95,593,174

(Thousands of yen)
As of December 31,2021
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 capitalCapital 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, 2022

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

1,612,544
100,000
1,357,893
966,641
5,650,871
9,687,950

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

344,702523,481
183,925
1,052,109
10,740,060

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

867,948
1,180,482
86,184,656-7,293,785
80,939,302

1,843,974

1,513,420

819,197

2,162,599

2,663,172

3,676,020

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

232,552
5,238
84,853,113
95,593,174

(2) Consolidated Quarterly Statements of Income and Comprehensive Income(Consolidated Quarterly Statements of Income)(Thousands of yen)Three months ended
March 31, 2021
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 intrust
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 intrust
Commission expenses
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
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, 2022

11,337,537
4,608,552
6,728,984

11,981,938
4,634,051
7,347,886

3,053,029

3,461,543

3,675,954

3,886,343

17,341
2

17,734
3

123,012－32,13335,92756,39925,752

187,398
25,072
441,360

447,068
60,943
587,428

962

288

－

83,782

－
2,638
3,601
4,113,714

2,535
13,007
99,614
4,374,157－
17,087
17,08764,320－64,320－31,069

183

951

183
4,130,617
1,202,322-146,776
1,055,546
3,075,071

32,0204,406,457
1,284,509-21,105
1,263,404
3,143,053

258

430

3,074,812

3,142,622

(Consolidated Quarterly Statements of Comprehensive Income)(Thousands of yen)Three months ended
March 31, 2021
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, 2022

3,075,071

3,143,053

59,682-330,553

629,947
689,629
3,764,701

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

3,764,499

4,155,470

201

1,451

(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, 2021 (From January 1, 2020 to March 31, 2021)(Thousands of yen)Per

Reportable segments
DentalIndustrial

SurgicalReportableproducts

products

Products

segments

Reconciling
items

quarterly
consolidated financial
statements

Sales
Revenues
fromexternal

9,809,333

847,629

680,573

11,337,537－

11,337,537－－－－－－

9,809,333

847,629

680,573

11,337,537－

11,337,537

4,127,351

299,177

321,557

4,748,085-1,072,131

3,675,954

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

Reportable segments
DentalIndustrial

SurgicalReportableproducts

products

Products

segmentsReconciling
items

quarterly
consolidated financial
statements

Sales
Revenues
fromexternal

10,095,404

1,092,854

793,679

11,981,938－

11,981,938

－

－

－

－

－

－

10,095,404

1,092,854

793,679

11,981,938－

11,981,938

4,097,557

375,331409,453

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 statementsof income.

Change of segment
From 1st quarter of this year, surgical product segment is showing because the figures are big. Surgicalproduct segment was included in dental products segment in the past.
And other segment was divided into dental products segment and industrial product segment and surgicalproduct segment. The divided figures were added to the three segments.
Furthermore, about year-on-year, it is analyzed by the figures at the changed segment.

－ 12 －