- Notes for shareholders
Securities code | 7716 | ||
Fiscal year | From January 1 to December 31 | ||
Annual general meeting | March | ||
of shareholders | |||
Shareholder registration | Record date for the exercise of voting rights at the annual general meeting of shareholders | December 31 | |
date | Record date for year-end dividends | December 31 | |
Record date for interim dividends | June 30 | ||
Shareholder registry | Sumitomo Mitsui Trust Bank, Limited | ||
administrator and special | 1-4-1 Marunouchi, Chiyoda-ku, | ||
account management | Tokyo | ||
institution | |||
Contact details | 2-8-4 Izumi, Suginami-ku, Tokyo Stock Transfer Agency Business Planning Dept., Sumitomo Mitsui Trust Bank | ||
0120-782-031(toll-free) | |||
Method of public notice | Public notices are posted on the Company's website. If the Company cannot publish electronic public | ||
notices due to unavoidable circumstances, it will publish public notices in the Nihon Keizai Shimbun. | |||
Share unit | 100 shares | ||
Stock exchange listing | Tokyo Stock Exchange Standard | ||
Notice | Change of address, request for purchase of fractional shares | ||
Inquire with a securities company where you have your account. If you do not have an account at any | |||
securities company and have opened a special account, please inquire with Sumitomo Mitsui Trust | |||
Bank, which manages special accounts. | |||
Payment of accrued dividends | |||
Please inquire with Sumitomo Mitsui Trust Bank, the administrator of the shareholder register. |
Cover photo: SPIRAL.UQ
A stainless gure placed in front of the main entrance of the headquarters in commemoration of the 90th anniversary. The gure is the work that sculptor Osamu Kido has created as the culmination of his works when he was retiring as a professor at the Tokyo University of the Arts. The title of the work, SPIRAL, connotes ultra-high-speed rotation, the Company's core technology. "UQ" represents our wish for everlasting (yukyu [ju:kju:]-no) evolution and development.
NAKANISHI INC. 700 Shimohinata, Kanuma, Tochigi 322-8666 TEL +81-289-64-3380 FAX +81-289-62-5636
BUSINESS REPORT
71st Fiscal Year (Interim)
January 1, 2022 to June 30, 2022
NAKANISHI INC.
MESSAGE | [To Our Shareholders] | BUSINESS SUMMARY |
I would like to take this opportunity to express my gratitude to our shareholders for your continued support.
Operating results in the first half of FY2022 | Trends in quarterly net sales |
Both sales and income in the rst half of 2022 rose year on year on the strength of rm demand worldwide and the weaker JPY. Net sales rose in all segments, namely the Dental, Surgical, and Industrial segments. Operating income, ordinary income, and income attributable to owners of parent hit record highs.
We fully tapped into increased demand after the COVID-19 pandemic subsided and the scale of our business expanded signicantly. The urgent issue now is to increase production capacity. To address the issue, we started the construction of a parts processing factory, A1+, in November last year. The factory was completed on September 5 and is starting operation. We have decided to build a new assembly factory, M1, on the site of the headquarters, and have begun planning construction. We will implement initiatives to boost production and will establish the foundations to achieve growth over the medium to long term.
Trends in global demand were firm overall, although trends varied from market to market. Business inquiries increased in each business-Dental, Surgical, and Industrial-and sales grew steadily in the first half of 2022. Quarterly sales exceeded sales a year earlier, which were high. Quarterly sales were about the same level as a year earlier except for the effect of exchange rates (the positive effect of the weaker JPY on sales).
B of JPY | 2020 | 2021 | 2022 | |
15.0 | 12.4 | |||
11.9 | 11.3 | |||
12.5 | ||||
10.0 | 11.3 | 11.6 | 10.4 | 10.7 |
7.5 | 8.5 | |||||
7.2 | 6.3 | |||||
5.0 | ||||||
2.5 | ||||||
0 | ||||||
1Q | 2Q | 3Q | 4Q | |||
(Jan-Mar) | (Apr-Jun) | (Jul-Sep) | (Oct-Dec) |
Considering the latest business trends and exchange rates, we have prepared a mid-term management plan rolling plan, NV2025+ (please refer to P. 05). While maintaining earnings at high levels and working to increase them, we will evolve our management and emphasize capital efciency to enhance corporate value.
Given prolonged supply chain disruptions, production activities remain unpredictable. Even in this environment, all employees will work as one to
Net sales | Operatingincome | Income attributable to owners of parents | |||||||||||||||
YoY | YoY | 6.7 B of JPY | YoY | ||||||||||||||
24.4 B of JPY | +6.3% | 8.1 B of JPY | +6.3% | +25.8% | |||||||||||||
First half | Full year | First half | Full year | First half | Full year | ||||||||||||
provide products to customers worldwide as soon as possible.
We hope that we can continue to count on your support as we achieve further growth.
President & Group CEO
Eiichi Nakanishi
B of JPY | |||
50.0 | Forecast | ||
40.0 | 44.8 | 45.7 | |
30.0 | 33.0 | ||
20.0 | 23.0 | 24.4 | |
10.0 | 13.6 | ||
0 | |||
2020 | 2021 | 2022 |
B of JPY 15.0
12.5 | 13.7 | Forecast | |
12.6 | |||
10.0 | |||
7.5 | 8.5 | 7.6 | 8.1 |
5.0 | |||
2.5 | 2.3 | ||
0 | 2020 | 2021 | 2022 |
B of JPY 15.0
12.5 | |||
10.0 | 10.1 | Forecast | |
9.6 | |||
7.5 | |||
5.0 | 6.4 | 5.3 | 6.7 |
2.5 | |||
0 | 1.8 | ||
2020 | 2021 | 2022 | |
01 BUSINESS REPORT
02
BUSINESS SUMMARY
The reporting segments changed at the beginning of FY2022.
Dental Business
Trends in net sales in Dental Business
Business summary in 1st half
Engages in the development, manufacture, and sale of dental equipment for a range of dental treatment, including restorative dentistry, periodontics, mobile dental care, and oral surgery.
B of JPY | First half | Full year | ||||||||||||||||
50.0 | ||||||||||||||||||
40.0 | ||||||||||||||||||
30.0 | 38.2 | |||||||||||||||||
20.0 | 28.0 | |||||||||||||||||
20.5 | ||||||||||||||||||
19.8 | ||||||||||||||||||
Dental hand piece | Oral surgery system | Oral hygiene system | Autoclave | 10.0 | ||||||||||||||
11.2 | ||||||||||||||||||
Ti-Max Z Series | Surgic Pro2 | Varios Combi Pro | iClave mini2 | |||||||||||||||
0 | ||||||||||||||||||
2020 | 2021 | 2022 | ||||||||||||||||
Japan | Sales trend | |||
YoY | ||||
Europe | Sales trend | |||
YoY | ||||
North | Sales trend | |||
America | YoY | |||
Asia | Sales trend | |||
YoY | ||||
Other | Sales trend | |||
YoY | ||||
OEM sales were firm. However, demand ran its course when government grants ended in March last year, and sales declined.
Sales of dental hand pieces and oral surgery system, our mainstay products, rose. Sales for the U.K., in particular, were strong.
Sales of dental hand pieces and micro motors expanded. Both private brand and OEM items sold well. Net sales increased significantly.
Sales recovered in Southeast Asia. Sales in South Korea remained flat from a year ago. Overall sales decreased due to the significant effects of lockdowns in China.
Sales were weak in Russia, but rose significantly in South America. Sales in Australia and the Middle East were firm. Overall, sales increased.
Surgical Business
Trends in net sales in Surgical Business
Business summary in 1st half
Engages in the development, manufacture, and sale of drills for bone cutting for surgery that are used in medical fields such as neurosurgery, spine surgery, and orthopedic surgery.
B of JPY | First half | Full year | |||||||||||||||
4.0 | |||||||||||||||||
3.0 | |||||||||||||||||
2.0 | 2.7 | ||||||||||||||||
2.1 | |||||||||||||||||
1.6 | |||||||||||||||||
1.0 | 1.3 | ||||||||||||||||
Total surgical system | Slim motor | Attachment | Surgical burs | ||||||||||||||
0.9 | |||||||||||||||||
Primado2 | P200-SMH Series | P300 Attachment Series | Attachment Burs | ||||||||||||||
Control Unit | 0 | ||||||||||||||||
2020 | 2021 | 2022 | |||||||||||||||
Japan | Sales trend | |||
YoY | ||||
Europe | Sales trend | |||
YoY | ||||
North | Sales trend | |||
America | YoY | |||
Asia | Sales trend | |||
YoY | ||||
Sales grew due to successful sales activities to spine surgery in addition to the existing neurosurgery.
Sales rose significantly due to replacement demand from existing customers and major deals with core hospitals.
Sales increased, reflecting the high marks that the Company's products have received in the North American market and the expansion of sales channels in cooperation with other companies.
Although sales were strong at the beginning of the fiscal year, sales declined due to lockdowns in China.
Industrial Business
Trends in net sales in Industrial Busines
Business summary in 1st half
Engages in the development, manufacture, and sale of spindles and hand grinders used in micromachining and precision processing in a wide range of manufacturing fields such as the automobile, aircraft, and precision equipment industries.
Industrial spindles | Industrial spindles | Micro grinder | Ultrasonic polisher |
E-4000 Series | Air-Speed Series | EmaxEVOlution | Sheenus ZERO |
B of JPY | First half | Full year | ||||
5.0 | ||||||
4.0 | |||
3.0 | 3.8 | ||
2.0 | 2.9 | ||
2.2 | |||
1.7 | |||
1.0 | 1.4 | ||
0 | 2020 | 2021 | 2022 |
Japan | Sales trend | |||||
YoY | ||||||
Europe | Sales trend | |||||
YoY | ||||||
North | Sales trend | |||||
America | YoY | |||||
Asia | Sales trend | |||||
YoY | ||||||
Sales of spindles for deburring, drilling, and substrate dividing rose due to large capital expenditures at manufacturers.
We resumed holding trade shows, where we received large numbers of business inquiries. Sales rose, reflecting strong orders resulting from those inquiries.
Appetite for capital expenditures was firm in the North American market. Sales, particularly sales of spindles, were strong and rose significantly.
Although demand was strong, we had to reduce production due to parts shortages. Sales remained flat from a year earlier.
03 BUSINESS REPORT
04
TOPICS [Mid-Term Management Plan]
Mid-Term Management Plan Rolling Plan NV2025+
Amid the COVID-19 pandemic, sterilizing at dental clinics has become commonplace, and demand for dental equipment rose worldwide. We fully tapped into strong demand worldwide, and the base line for global sales of the Company's products have risen significantly. The latest operating results have far exceeded the targets set in the mid-term management plan. Meanwhile, the JPY has weakened, and the assumptions for performance targets have changed significantly. In this environment, we have prepared a mid-term management plan rolling plan "NV2025+", based on the present business plan.
Basic policies, priority measures
(Note) No changes from the previous plan, NV2025
- Strategic expansion of the dental business in the global market
- Development of new businesses to respond to needs in a rapidly aging society
- Building a management base for speedy development and by far the strongest cost competitiveness
Performance targets, nancial targets
- Evolving management from PL-oriented management to management that also emphasizes capital efciency
- Cash allocation in consideration of a balance among growth investment, shareholder return, and risk tolerance
Previous plan | Net sales | Operating | Operating | |||||||||||||
income | ||||||||||||||||
income | ||||||||||||||||
margin | ||||||||||||||||
NV2025 | 50.0 B of JPY | 14.0 B of JPY | 28% | |||||||||||||
▼ | ▼ | ▼ | ||||||||||||||
Rolling Plan | Net sales | Operating | Operating | Total | Cash & marketable | |||||||||||
income | + | ROE | + | + | securities to | |||||||||||
income | payout ratio | |||||||||||||||
+ | margin | monthly sales ratio | ||||||||||||||
NV2025 | 55.0 B of JPY | 16.5 B of JPY | 30% | 11% | 50% | 12 months | ||||||||||
05 BUSINESS REPORT |
[Completion of New Factory A1+]
New parts factory A1+ completed on September 5
A new factory, A1+, was completed on September 5 in Utsunomiya Nishi Chukaku Indusrial Park (Kanuma, Tochigi), next to the A1 factory. The total floor space is 5,500 square meters. A total of 1,600 solar panels are installed across the entire rooftop, which enables the factory to contribute to increasing production capacity and reducing its impact on the environment.
A1
A1
At the new factory A1+, we will take steps to increase the capacities of production lines and human resources.
Increasing parts processing capacities
We will seek to increase parts (primary) processing capacities, a bottleneck in production activities. We will pursue automation and streamlining in the production process and build efficient production lines. We will change the existing production lines in the same manner.
Implementing a human resources cultivation program
We will start a new human resources development program, ASK*, to expedite the cultivation of a homogeneous group of technicians who handle ultra-precision parts processing. We will cultivate human resources for advanced manufacturing through a systematic training program.
* Academy of Sessaku (cutting) & Kenma (polishing): Cutting and polishing are basic and the most important techniques in parts processing at the Company.
06
TOPICS [NSK Teams Expanding into the World]
NSK Dental Nordic
Frankfurt Number of employees: 43 Established: 2003 | Gothenburg Number of employees: 12 Established: 2018 | Shanghai Number of employees: 32 Established: 2005 | Chicago Number of employees: 73 Established: 1984 |
London Number of employees: 29 Established: 2007 | Seoul Number of employees: 10 | |||||||||||||
Established: 2014 | ||||||||||||||
Singapore Number of employees: 3 | |||||
Paris Number of employees: 30 Established: 2005 | Established: 2009 | ||||
NSK RUS | Joinville Number of employees: 20 | ||||||||||||
Sydney/Auckland Number of employees: 17 | |||||||||||||
Madrid Number of employees: 19 Established: 2008 | Thiene Number of employees: 61 Established: 2013 | Dubai Number of employees: 4 Established: 2000 | Moscow Number of employees: 6 Established: 2007 | Established: 2007 | Established: 2013 | ||||||||
07 BUSINESS REPORT
08
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Nakanishi Inc. published this content on 30 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 September 2022 03:03:05 UTC.