Briefing Materialfor 2nd quarter ended Jun. 30, 2024

Aug. 9, 2024
NAKANISHI INC.

Disclaimer
The information presented in these materials contains forward-looking statements about futurebusiness performance. These statements by definition involve risks and uncertainties and are notintended to guarantee future performance. Actual results in the future may differ fromexpectations and the projections presented in these materials due to changes in the global
economy and fluctuations in foreign currency exchange rates and so on.
@© 2024 NAKANISHI INC.

Change in reporting segments

Key change

Presenting results of DCI, acquired in Aug. 2023, as an independent segment.

Previous reporting segments

New reporting segments ＊Starting from FY2024 Q1

Dental Business

Dental Business

Establishment

DCI Business

Surgical Business

Surgical BusinessIndustrial BusinessIndustrial Business© 2024 NAKANISHI INC.

Development, production and sales of wide range of dental
equipment, which cover such as restorative dentistry,periodontics, mobile dental care, oral surgery, etc.

Presenting results of DCI, acquired in Aug. 2023, as anindependent segment. Development, production and salesof dental chairs and related equipment in the U.S.

Development, production and sales of bone grinding andcutting drills which can be used in areas of neurosurgery,spine surgery and orthopedic surgery.

Development, production and sales of spindles which can beused in high-precision processes in wide range of industrial
areas such as automobile, aircraft, precision parts industries.

2Product lineup
Dental Business

Handpiece
Establishment

implant motor

Oral hygiene system

Clinical micro motor

Dental Parts (H.P. Cart)

Dental Parts (Syringe)

DCI Business

Dental chair

Surgical Business

ConsoleSlim motorAttachment

Bur

Controller＆Spindle

SpindleNetwork interface module

Ultrasonic Cutter

Industrial Business© 2024 NAKANISHI INC.

3

Performance highlights of FY2024 Q2

Consolidated net sales was increased by 36% (vs. 2023Q2) due to the depreciationof the yen and the effects of acquisitions. Sales increased in Dental, DCI and
Surgical segments, while decreased significantly in Industrial segment.

EBITDA was increased by double-digit, reaching over 11 billion yen, mainly boosted
by FOREX and M&A.

T

he full-year financial forecasts has been revised upward considering actual
results for the first half and the current exchange rates, although the businessenvironment is assumed to remain challenging until the end of the fiscal year.

＊ Retrospective adjustment was made for the results for 2023Q2 following the completion of the PPA of acquired company (JAEGER).
© 2024 NAKANISHI INC.

4

Consolidated P/LFY2024Q2

FY2023Q2

ActualActualNet sales

38,55728,259+10,297+36.4%

Gross Profit

22,863

17,793+5,070+28.5%

59.3%

63.0%

-3.7pt—11,051

9,379+1,672+17.8%

28.7%

33.2%

-4.5pt—

8,287

8,038

+248

+3.1%

21.5%

28.4%

-7.0pt—10,522

11,039-517

-4.7%

27.3%

39.1%

-11.8pt—

7,026

7,972-945-11.9%

Ratio to net sales

18.2%

28.2%

-10.0pt—(JPY)

82.88

93.74

—

—

- Against the US dollar (JPY)152.31135.99+16.32－- Against the EURO164.83147.01+17.82－

M of JPY

Ratio to net sales

EBITDA ＊Margin

Operating Profit
Ratio to net sales

Ordinary Profit
Ratio to net sales

Profit attributable toowners of parentEPSYoY comparison
AmountRatio＊ EBITDA = Operating profit + Depreciation + Amortization

Currency rate(JPY)

Forex impact: Net sales +3,209M of JPY (vs FY2023Q2 Actual), +3,147M of JPY (vs FY2024 Forecast)© 2024 NAKANISHI INC.

5

Reference data：Consolidated P/L excluding DCI and Refine
Reference data
Reference dataexcluding DCI and REFINE excluding DCI and REFINE

M of JPYYoY comparison

FY2024Q2 Actual

FY2023Q2 Actual

AmountRatio

Net sales

27,79628,259-462-1.6%

Gross profit

18,543

17,793+750+4.2%

66.7%

63.0%

+3.7pt—9,444

9,379+64+0.7%

34.0%

33.2%

+0.8pt—8,001

8,038-37

-0.5%

28.8%

28.4%

+0.3pt—10,212

11,039-826

-7.5%

36.7%

39.1%

-2.3pt—7,069

7,972-902-11.3%

Ratio to net sales

25.4%

28.2%

-2.8pt—（JPY）

83.38

93.74

—

—

- Against the US dollar (JPY)152.31135.99+16.32－- Against the EURO164.83147.01+17.82－

Ratio to net sales

EBITDA ＊MarginOperating profit
Ratio to net sales

Ordinary profit
Ratio to net sales

Profit attributableto owners of parent

EPS＊ EBITDA = Operating profit + Depreciation + Amortization

Currency rate(JPY)

Forex impact: Net sales +2,083M of JPY (vs FY2023Q2 Actual), +1,938M of JPY (vs FY2024 Forecast)© 2024 NAKANISHI INC.

6

Change in net sales by business segment
M of JPY+10,297

FY2023Q2
ActualFY2024Q2
ActualChange22,44823,335+3.9%-9,933-

Surgical

1,779

2,022

+13.7％

Industrial

4,031

3,266

-19.0%

28,25938,557+36.4%+36.4%+243

23,000Surgical+13.7%
18,00013,000-765

38,557

DCI

Industrial-19.0%+9,93328,259+886
Dental+3.9%

DentalDCITotal

8,000

Forex impact+2,083M of JPY（+7.4%）

M&A effect (DCI and Refine) +10,760M of JPY（+38.1%）
3,000

FY2023Q2Net sales

FY2024Q2Net sales© 2024 NAKANISHI INC.

Reference :DCI’s net sales in FY2023Q2

7,751M of JPY (unaudited) (1USD=133.26JPY)

7

Change in net sales by region
M of JPY+10,297

FY2023Q2
ActualFY2024Q2
ActualChangeJapan

5,120

4,648-9.2%

Europe9,596

10,103+5.3%

N. America

4,578

15,284+233.8%

Asia

4,483

4,517+0.8%

Others

4,480

4,002-10.7%

Total

28,25938,557+36.4%+36.4%+34

23,000

Asia
+0.8%

-477

38,557

Others-10.7%

18,000+10,705

13,00028,259-472+507

Japan
-9.2%

Europe+5.3%

N. America+233.8%8,000

Forex impact+2,083M of JPY（+7.4%）

M&A effect (DCI and Refine) +10,760M of JPY（+38.1%）
3,000

FY2023Q2
Net sales

FY2024Q2
Net sales© 2024 NAKANISHI INC.

8

Change in EBITDA by business segment
M of JPY+1,672

FY2024Q2Actual

ChangeDental

9,825

10,237+4.2%

DCI ＊-5

1,585-

Surgical

928

1,106+19.2%

Industrial

931

703

-24.5%Corporate
expenses-2,301-2,581-

Total

9,379

11,051+17.8%+17.8%

7,000+178

6,000+1,590

5,000

4,000

FY2023Q2
Actual

9,379+411

Surgical+19.2%

-228

-279

Industrial-24.5% Corporate
expenses

11,051

DCI

Dental+4.2%
3,000

Forex impact

2,000+453M of JPY（+4.8%）

M&A effect (DCI and Refine)+1,578M of JPY（+16.8%）

1,000

FY2023Q2
EBITDAFY2024Q2
EBITDA© 2024 NAKANISHI INC.

Reference :＊DCI’s EBITDA in FY2023Q2

1,190M of JPY (unaudited) (1USD=133.26PY)＊DCI’s EBITDA in FY2023Q2 includes the profit and loss of NAH,
an intermediate holding company.

9Change in EBITDA
Exchange rate

M of JPY+ 1,672

11,4106,200

FY2023Q2

FY2024Q2

Average

Average

USD

135.99 JPY→

152.31JPY

EUR

147.01 JPY→

164.83 JPY+17.8%

5,700+342-246

Decrease inSelling
expenses

Increase inPersonnel
expenses+106

11,0515,200+1,578-1,602

M&A
effectDecreasein demand

4,700

4,200

9,379+453

3,700+1,041

Decrease inOtherexpenses

Cost rate
factors

Forex
impact

3,200

2,700

2,200

1,700

FY2023Q2
EBITDA

Adjusted
EBITDAFY2024Q2
EBITDA© 2024 NAKANISHI INC.

10

Other income / Expense, Taxes
M of JPY

EBITDA

11,051

Depreciation

1,975
789

Amortization

Non-operating profit

8,287

Operating profit
Non-operating profit

2,278

Non-operating expenses

43

Ordinary profit

10,522Extraordinary income

0

Extraordinary losses

45

Profit before income taxes

10,476

Total income taxes, etc.

3,450

Non-operating expenses

Extraordinary losses

・Interest income

281・Foreign exchange gain

1,563

・Miscellaneous income

204・Interest expenses

23

・Miscellaneous losses

17・Loss on retirement of
non-current assets

19

・Expense on scrapping fixed assets

23

7,026

Profit attributable to owners of parent
1,000

2,000

3,000

4,000

5,000

6,000

7,000

© 2024 NAKANISHI INC.

8,000

11

Consolidated balance sheet
M of JPY

As of Jun. 30,
2024

As of Dec. 31,
2023

ChangeNotes

156,758

140,768+15,989

・Buildings and structures
・Construction in progress+4,836-3,136- Cash and deposits

39,32431,718+7,606- Inventories

26,26524,016+2,249・Merchandise and finished goods
・Work in process
・Raw materials and supplies+1,050+645+553- Goodwill

23,352

21,378+1,973Liabilities

32,722

27,603+5,118・Accounts payable - trade
・Current liabilities - other

14,48911,668+2,821・Current portion of long-term borrowings +1,001
・Long-term borrowings+1,768124,035

113,164+10,870

・Treasury shares-866
・Foreign currency translation adjustment +7,574- Retained earnings

117,119

112,310+4,808Return on equity

11.9%

22.4%

-10.5ptReturn on assets

14.1%

14.2%

-0.1ptFY2024Q2
ActualFY2023Q2
ActualChange

Notes

Capital investments

2,458

3,113-654

・M1 factory
・Machinery and equipment

Depreciation expenses

1,975

1,239+735

Total assets- Loans payable

Net assets© 2024 NAKANISHI INC.

+536+503

1,085
536

12

Consolidated statements of cash flows
M of JPY
25,000Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Effect ofexchange ratechange20,00030,132-3,931+7,287
15,00025,972

10,0005,000

Payments into time
deposits-3,439Purchase of property,plant and equipment-2,425

Profit before income
taxes+10,476

Purchase of intangible
assetsDepreciation+1,975

Amortization of
goodwill+789

Proceeds fromcancellation of
insurance funds

Foreign exchange
gains-1,698

Income taxes paid

-2,815-182+2,251-1,447Long-term borrowing+3,000

Dividends paid

-2,217Purchase of treasury
shares-1,999+1,311

Proceeds from saleand redemption ofinvestment securities+456

Free cash flows+3,3560Cash and cash
equivalents at beginningof period 2024/01

Cash and cash
equivalents at end ofperiod2024/06© 2024 NAKANISHI INC.

13

Revision of consolidated
financial forecast for FY2024© 2024 NAKANISHI INC.

14

Revision of consolidated financial forecast for FY2024
M of JPY

Revised forecast
for FY2024

Previous forecast
for FY2024

vs. Previous Fcst

FY2023 Actual

announced on Aug. 9

announced on Feb. 13

AmountRatio

Net sales

75,20874,432

+776

+1.0%

Gross Profit

43,66941,324+2,345

+5.7%

58.1%

55.5%

+2.5ptー19,013

17,770+1,242+7.0%

25.3%23.9%+1.4ptー

13,427

12,652+775

+6.1%

17.9%

17.0%

+0.9ptー

14,635

13,088+1,547+11.8%

Ratio to net sales

19.5%

17.6%

+1.9ptーProfit attributable to owners of parent

9,652

8,894+758+8.5%

Ratio to net sales

12.8%

11.9%

+0.9pt113.85104.28

ーRevised forecast

Previous forecastchangeRatio to net sales

EBITDA＊
MarginOperating Profit
Ratio to net sales

Ordinary Profit

EPS（JPY）

YoY comparison
AmountRatio

59,692+15,516+26.0%

36,092+7,577+21.0%

60.5%-2.4ptー

17,710+1,302

+7.4%

29.7%

-4.4ptー

14,251-824

-5.8%

23.9%

-6.0ptー

17,193-2,557-14.9%

28.8%-9.3ptー

22,799-13,147-57.7%

ー

38.2%-25.4pt

ーー267.62

ーー＊ E B I T D A = Operating profit + Depreciation + Amortization

Assumed Currency rate (Annual average)- Against the US dollar(JPY)

146.00135.00+11.00- Against the EURO(JPY)

159.00150.00+9.00© 2024 NAKANISHI INC.

Assumed exchange rate for 2nd-half 1USD ＝ 140.00JPY
1EUR = 155.00JPYForex sensitivity

USD 216 M of JPY(Annual net sales)
EUR 93 M of JPY(Annual net sales)

15Reference date: Revision of consolidated financial forecast for FY2024 excluding DCI and Refine
M of JPY

Revised forecast

Previous forecast

FY2023 Actualexcluding DCI andREFINE

excluding DCI andREFINE
announced on Aug. 9

excluding DCI andREFINE
announced on Feb. 13

AmountRatio

Net sales

55,22555,648

-422

-0.8%

Gross Profit

35,94434,405+1,539

+4.5%

65.1%

61.8%

+3.3ptー17,105

16,428

+676

+4.1%

31.0%

29.5%

+1.5ptー

14,18013,523

+657

+4.9%

25.7%

24.3%+1.4pt

ー

15,37013,971+1,398+10.0%

Ratio to net sales

27.8%

25.1%+2.7pt

ーProfit attributable to owners of parent

10,633

9,893+739+7.5%

Ratio to net sales

19.3%

17.8%

+1.5pt125.42115.99ーRevised forecast

Previous forecastchangeRatio to net sales

EBITDA＊
MarginOperating Profit
Ratio to net sales

Ordinary Profit

EPS（JPY）

vs. Previous Fcst

YoY comparison
AmountRatio

55,335-110-0.2%

34,979

+964

+2.8%

63.2%

+1.9ptー17,754-649

-3.7%

32.1%

-1.1ptー

14,948-768

-5.1%

27.0%

-1.3ptー

18,082-2,712-15.0%

32.7%-4.8ptー

12,180-1,547-12.7%

ー

22.0%-2.8ptーー142.97

ーー＊ E B I T D A = Operating profit + Depreciation + Amortization

Assumed Currency rate (Annual average)- Against the US dollar(JPY)

146.00135.00+11.00- Against the EURO(JPY)

159.00150.00+9.00© 2024 NAKANISHI INC.

Assumed exchange rate for 2nd-half 1USD ＝ 140.00JPY
1EUR = 155.00JPYForex sensitivityUSD 216 M of JPY(Annual net sales)
EUR 93 M of JPY(Annual net sales)

16Change in net sales by business segment
M of JPY+ 15,516

FY2023
ActualPrevious
forecast
Feb. 13

Revisedforecast
Aug. 9Change44,36646,80946,654

+5.2%

3,974

16,412

17,846-(Oct.-Dec.)(Jan.-Dec.)

Surgical

3,770(Jan.-Dec.)

Industrial

7,581

7,215

6,355 -16.2%

59,69274,43275,208 +26.0%+ 26.0%31,500+224

Surgical

26,500-365

74,432

Industrial+357-155+1,433

DentalDCI

Surgical-859

75,208

DentalIndustrial

DCI21,500+12,438

3,994

4,352 +15.4%

16,50059,692
11,500+2,443

Total

DCIDental

Forex impact (YoY comparison) +2,137 M of JPY (+3.6%)
M&A effect (YoY comparison) +14,937 M of JPY (+25.0%)

6,500

FY2023
Net sales
ActualFY2024Previous
Forecast

FY2024
RevisedForecast© 2024 NAKANISHI INC.

*DCI’s results were included and presented under Dental businesssegment in FY2023, but in this slide, it is separated and presented
individually based on business segment as of FY2024.

17Change in EBITDA
Exchange rate
M of JPYFY2023 Actual+1,302

19,9748,000+7.4%

FY2024 Forecast

USD

JPY 140.54→

JPY 146.00

EUR

JPY 152.27→

JPY 159.00

+88

7,500

-1,0817,000+1,189+1,8096,500

Decreasein demand

6,000

5,500

17,710+453

Cost rate
factors

Decrease in
selling
expenses

-986
-170

19,013

Increase inpersonnel Decrease inotherexpenses
expenses

M&A
effectForex
impact

5,000

4,500

4,000

3,500

3,000

FY2023
EBITDA

Adjusted
EBITDAFY2024
EBITDA© 2024 NAKANISHI INC.

18