NAKANISHI INC. Notes for shareholders
Securities code Fiscal year
Annual general meeting of shareholders
Shareholder registration date
Shareholder registry administrator and special account management institution
Contact details
Method of public notice
Share unit
Stock exchange listing Notice
Tokyo Stock Exchange JASDAQ Standard Change of address, request for purchase of fractional shares
Notice regarding the termination of the mailing of the business report
The Company has been sending the business report by postal mail. However, in consideration of the global environment, we will no longer mail the paper version of the report starting with this issue and decided to post the report on our website (https://www.nakanishi-inc.jp). We hope that we can continue to count on your understanding and support.
Cover: NSK STUDIO
We have created NSK STUDIO to enable more people around the world to learn about Nakanishi's aspirations: We want to protect teeth and the global environment, which are beautiful and irreplaceable. Enjoy the 3-D computer animations by Atsushi Makino, a world-class video artist.
https://japan.nsk-dental.com/brand/nsk_studio/
NAKANISHI INC. 700 Shimohinata, Kanuma, Tochigi 322-8666 TEL +81-289-64-3380
Sumitomo Mitsui Trust Bank, Limited 1-4-1 Marunouchi, Chiyoda-ku, Tokyo
7716
From January 1 to December 31 March
Record date for the exercise of voting rights at the annual general meeting of shareholders Record date for year-end dividends
Record date for interim dividends
2-8-4 Izumi, Suginami-ku, Tokyo Stock Transfer Agency Business Planning Dept., Sumitomo Mitsui Trust Bank 0120-782-031 (toll-free)
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.
100 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.
MESSAGE
[To Our Shareholders]
BUSINESS SUMMARY
I would like to take this opportunity to express my gratitude to our shareholders for your continued support.
Both sales and income in 2022 rose year on year in all segments, namely the Dental, Surgical and Industrial segments, on the back of rm demand worldwide. Consolidated results achieved record highs for the second consecutive year.
When the COVID-19 pandemic began, competitors ceased operations one after another. Meanwhile, the Company decided to continue operations. We continued to commit ourselves to our customers, while paying close attention to infections. As a result, we have built immense credibility. This has been a major driving force behind the rapid expansion of our business to date.
We have received many orders from around the world in each of the Dental, Surgical and Industrial segments, but we have not been able to produce products to ful ll the orders chie y due to prolonged parts shortages and a chronic lack of production personnel because of COVID-19. As a result, delivery lead times have been longer than usual. To live up to customers' expectations in a timely fashion, we are earnestly taking steps to increase production.
At A1+, a new factory completed last year, we have started to increase the production of precision parts and increase automation. We will start to build M1, a new assembly factory, on the site of the headquarters in April this year. A factory in China will start to assemble knock-down kits this spring. In this way, we will appropriately respond to the Buy China policy which favors domestic products.
We are steadily developing a management base for sustainable growth. We will seize opportunities to achieve further growth. All employees of the NAKANISHI Group around the world will work as one team to progress toward the realization of VISION 2030, the long-term vision, and achieve rapid growth going forward.
We hope that we can continue to count on your support as we achieve further growth.
President & Group CEO
Eiichi Nakanishi
Operating results in FY2022
We steadily tapped into firm global demand, and as a result, both sales and income increased year on year in all segments: Dental, Surgical and Industrial. Consolidated results achieved record highs for the second consecutive year. The results were elevated by the weaker JPY against the major transaction currencies, particularly the U.S. dollar and the euro. Eliminating the effect of exchange rates, results remained roughly flat from the previous fiscal year, whose results were record highs. Amid the prolonged parts shortages due to the disruption of supply chains, we minimized the effects of the parts shortages by purchasing parts on the market and replacing unavailable parts with parts that were easy to procure (design changes), and this resulted in the record-high results.
First half
B of JPY 60.0
50.0
40.0
30.0
20.0
10.0
0
Full year
Trends in quarterly net sales
B of JPY 15.0
12.5
10.0
7.5
5.0
2.5
0
1Q (Jan-Mar)
First half
B of JPY 17.5
15.0
12.5
10.0
7.5
5.0
2.5
0
Full year
2Q (Apr-Jun)
3Q (Jul-Sep)
4Q (Oct-Dec)
First half
B of JPY 15.0
12.5
10.0
7.5
5.0
2.5
0
Full year
2020
2021
2022
2020
2021
2022
2020
2021
2022
BUSINESS SUMMARY
The reporting segments changed at the beginning of FY2022.
Dental Business
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.
Surgical Business
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 orthopedics surgery.
Industrial Business
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.
Total surgical system Primado2
Control Unit
Slim motor P200-SMH Series
Oral hygiene system Varios Combi ProAttachment
P300 Attachment SeriesAutoclave iClave mini2
Surgical burs Attachment burs
Trends in net sales in Dental Business
B of JPY 50.0
First half
Full year
40.0
30.0
20.0
10.0
0
2020
2021
2022
Trends in net sales in Surgical Business
B of JPY 4.0
First half
Full year
3.0
2.0
1.0
0
2020
2021
2022
Trends in net sales in Industrial Business
B of JPY
6.0
5.0
4.0
3.0
2.0
1.0
0
First half
Full year
Business summary in FY2020
Japan | Sales trend YoY |
Europe | Sales trend YoY |
North America | Sales trend YoY |
Asia | Sales trendYoY |
Other | Sales trend YoY |
There was a bottoming out of demand, which declined due to the termination of government grants, and sales rose in the second half.
Sales particularly in the U.K., northern Europe and Spain remained strong.
Sales of the Company's own products grew. Market share rose to a record high.
Sales remained flat from a year ago, reflecting lockdowns and the zero-COVID policy in China.
Sales in Australia and the Middle East were firm. Sales in South America rose significantly.
Business summary in FY2020
Japan | Sales trend YoY |
Europe | Sales trendYoY |
North America | Sales trend YoY |
Asia | Sales trendYoY |
Other | Sales trend YoY |
New customers were gained due to a stable supply of disposable products.
Demand slowed, but sales were firm in Germany etc. Overall sales remained flat from the previous year.
The products were highly rated, and sales continued to increase. An expansion of cooperation with other companies boosted sales significantly.
In China, sales rose sharply after the end of lockdowns. Overall sales remained flat from the previous year.
Sales were weak in the Middle East, but sales increased significantly in South America.
Business summary in FY2020
2020
2021
2022
Japan | Sales trend YoY |
Europe | Sales trend YoY |
North America | Sales trend YoY |
Asia | Sales trend YoY |
Other | Sales trend YoY |
Due to parts shortages, production continued to fall short of being able to fulfill orders which were strong.
The Company successfully publicized case studies, and products of the Company were purchased as replacements.
Orders increased due to the strengthening of the sales system. Sales rose as a result of successful transactions.
Longer delivery lead times became commonplace due to parts shortages. Sales declined, reflecting a decrease in shipments.
Sales were firm in South America, but fell in Australia and other regions.
[Mid-Term Management Plan]
[Factory A1+, Factory in China]
Progress in Mid-Term Management Plan NV2025+
Factory A1+ completed
Mid-Term Management Plan "NV2025+"
Basic policies, priority measures
The Company saw the adversity of the COVID-19 pandemic as an opportunity to steadily expand its business. Demand for the Company's products in the market remained strong. The base line for global sales of the Company's products has risen significantly. The Company is taking steps to appropriately respond to increasing demand and expand capacity.
Progress in FY2022
|
|
Mid-Term Management Plan NV2025+ 2020 to 2025
A1+ was completed in September 2022 and has started 24-hour operations. There is room to expand the production area, and the Company plans to expand facilities in response to the expansion of the scale of business. A new production line for improving production efficiency has been built. The Company is considering the horizontal development of the existing production lines to improve the productivity of the entire factory.
Net sales (B of JPY)
Operating pro t (B of JPY)
˛ The precision parts production area
55.0
˛ A new line handling four processes
48.6
44.8
A China factory established
36.5
34.3
35.4
33.0
9.4
9.7
9.2
8.5
13.7
15.3
16.5
To ensure sustainable growth in China, which is a key market, the Company has established a factory to assemble knock-down kits of precision parts manufactured at the headquarters, NSK Dental Manufacturing Co., Ltd., in Ziyang, Sichuan province. The factory will commence production this spring. The establishment of the factory is in line with China's Buy China policy, which favors domestic products, and the Company aims to expand sales in the Chinese market.
2017
2018
2019
2020
2021
2022
2023
2024
2025
ROE
Total payout ratio
Cash & marketable securities to monthly sales ratio
(months)
(%)
(%)
30.7
12.3
12.4
35.4
12.1
11.7
36.6
10.2
14.1
40.3
16.0
8.7
43.5
13.5
12.7
14.4
51.5
11.1
ʼ 11.0
50.0
ʻ 12.0
The China factory in Ziyang, Sichuan
[New Factory M1, Acquisition of Jäger]
[Sustainability]
Progress of the construction plan for the new factory, M1
The factory A1+ was completed, and the Company is increasing its parts machining capacity. Now the Company is working hard to implement a plan to build M1, which will have an assembly factory and warehouses for parts and finished products and engage in the following stages of manufacturing. The Company aims to increase production and improve efficiency in addition to shortening lead time. Meanwhile, the Company will strive to introduce energy-saving equipment and improve the working environment. The Company aims to make M1 a state-of-art factory that will increase production, reduce costs, and achieve a high level of sustainability.
Acquisition of Alfred Jäger GmbH
The Company acquired Alfred Jäger GmbH, a manufacturer specializing the production of industrial spindles, in Germany in December 2022. Like the Company's Industrial Business, Jäger engages in the development, manufacturing, and sale of industrial spindles. However, the two companies have different product lines, major applications and core markets. The Company aims to generate business synergy through the cross-selling of both companies products.
Established: 1967 Incorporated: 2000 Location: Germany
Main products: high frequency spindles Number of employees: Approx.120
˛ Spindle factory
˛ Product line
˛ Main application
Dental CAD/CAM
FY2022 sustainability topics
We are implementing the Mid-Term Management Plan and striving to realize important sustainability themes to enhance corporate value.
Environment
Achieved the carbon neutrality of the A1 factory and the headquarters factory
(GHG Protocol scopes 1 and 2)
Social
Won an excellent business site award (president's effort award) for the employment of people with disabilities
(Tochigi Prefecture's award for the employment of people with disabilities)
Governance
Established Nomination and Remuneration Committee
(voluntary advisory body to the Board of Directors)
Rating
Raised ESG rating agency scores
(MSCI • Sustainalytics)
2021
May Calculated GHG emissions August Announced Green Plan 2030
December 100% renewable energy at the headquarters and A1 factories
*Achieved scope 2 carbon neutrality
2022 September Purchased J-credits derived from a forest absorption project
*Achieved scope 1 carbon neutrality
October Achieved third-party carbon neutrality certification
MembersActivitiesMSCISustainalytics
Chair : Eiichi Nakanishi (President & Group CEO) Members : Yuji Nonagase (Independent Outside Director)
: Yukiko Araki (Independent Outside Director)
July 1 August-DecemberEstablished the committeeHeld four committee meetings
(online and face-to-face)
2020 2021 2022
B BB BBB
2020 High Risk
2021 High Risk
2022 Medium Risk
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Nakanishi Inc. published this content on 31 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2023 02:43:06 UTC.
