Flash Report for 3rd quarter Ended September 30, 2021 (on a consolidated basis) [Japan GAAP]

Flash Report for 3rd quarter Ended September 30, 2021

(on a consolidated basis) [Japan GAAP]

November 12, 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: [phone]

Scheduled date to submit Securities Report: November 12, 2021

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 3rd quarter period (January 1 to September 30, 2021)

(1) Operating Results

			Millions of yen
	Net sales	Operating income	Ordinary income
3rd quarter ended September 30, 2021	33,469	50.2%	11,113	117.2%	11,266	112.4%
3rd quarter ended September 30, 2020	22,281	-14.7%	5,116	-22.1%	5,303	-22.0%
	Income	Earnings per share
	attributable to	Diluted EPS (yen)
	(yen)
	owners of parent
3rd quarter ended September 30, 2021	8,096	107.9%		93.45		93.24
3rd quarter ended September 30, 2020	3,893	-20.4%		44.94		44.84

Notes: 1. Percentage figures for net sales, operating income, ordinary income and net income represent year-on-year comparisons.

1. 2. Comprehensive income for reporting period:

   3rd quarter ended September 30, 2021 8,571 million (124.6%) 3rd quarter ended September 30, 2020 3,817 million (-23.1%)

2. Financial Position

		Millions of yen
	Total assets	Net assets	Equity ratio
As of September 30, 2021	89,997	81,630	90.4%
As of December 31, 2020	82,470	76,272	92.3%
Note: Owners equity As of September 30, 2021	81,394 million
As of December 31, 2020	76,080 million

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2. Dividends

		Cash dividends per share (yen)
	3rd quarter	2nd quarter 3rd quarter	Year-end	Annual
Year ended December 31, 2020	15.00		15.00		30.00
Year ending December 31, 2021	17.00
Year ending December 31, 2021				17.00		34.00
(forecast)

Notes: 1. Revisions to dividend payment forecasts during the period: Not applicable

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

				Income	Earnings per
		Operating		attributable to
			share (yen)
	Net sales	income	Ordinary income	owners of parent
Full year	41,661 26.0% 13,001 52.2% 12,988 50.5%	9,338 44.7%	108.52
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
4. 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
5. Number of ordinary shares outstanding at the end of the period (including treasury stock)

As of September 30, 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 September 30, 2021:	7,803,886 shares
As of December 31, 2020:	7,602,642 shares

Average number of shares during the period

3rd quarter ended September 30, 2021: 86,637,649 shares

3rd quarter ended September 30, 2020: 86,652,764 shares * This quarterly flash report is out of scope of quarterly review.

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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	5
Information
2. Consolidated Quarterly Financial Statements and Principal Notes	6
(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 Shareholders Equity)	10
	(Changes in the scope of consolidation during the period)	10
	(Segment Information）	11

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1. Qualitative Information on Quarterly Financial Results

1. Explanation of Results of Operations

In the world economy during 3rd quarter, 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 it s been steady gradually but other areas sales increased. Industrial product segment and Other businesses sales increased as well. Total sales increased by 50.2%.

On the other hand, freight increased because sales increased and cost increased but advertisement and travel expenses increased just a little so Selling, general and administrative expenses increased by 15.2%. Operating income increased by 117.2%.

As a result, the Group sales were ¥33,469,106 thousand (+50.2% year on year), operating income was ¥11,113,769 thousand (+117.2%), ordinary income was 11,266,259 thousand (+112.4%) and income attributable to owners of parent for the quarter was ¥8,096,069 thousand (+107.9%).

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 from government etc. but it s 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 29,693,684 thousand (+53.7%) and segment profit was 13,058,419 thousand (+79.7 %).

（Industrial Products）

In Industrial Products, Asia sales increased dramatically (+50.0％). Domestic, Europe and North America sales increased as well. Total industrial sales increased. Segment profit increased as well. As a result, sales were 2,616,486 thousand (+29.2%) and segment profit was 989,088 thousand (+34.7%).

(Other Businesses)

In Other Businesses, which are repair services, sales were 1,158,935 thousand (+23.8%) and segment profit was 173,679 thousand (+114.8%).

1. Explanation of Financial Position (Assets, liabilities and net asset)
   Total assets at the end of 3rd quarter were 89,997,659 thousand and increased by 7,526,918 thousand compared with the end of the previous fiscal year. The main reasons were that Cash and deposits increased by 3,441,314 thousand and Investment securities increased by ¥1,745,668 thousand.
   Total liabilities were 8,367,296 thousand and increased by 2,168,631 thousand compared with the end of the previous fiscal year. The main reason was Other in current liabilities increased by ¥1,497,271 thousand.
   Net asset was 81,630,362 thousand and increased by 5,358,287 compared with the end of the previous fiscal year. The main reason was that Retained earnings increased by ¥5,323,053 thousand.

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(3)Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information

Currently we will not change the forecast announced on August 6, 2021.

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