Nakanishi : Flash Report for 3rd quarter Ended Sep. 30, 2022

Flash Report for 3rd quarter Ended September 30, 2022

(on a consolidated basis) [Japan GAAP]

November 11, 2022

Name: Nakanishi Inc. Stock listing: Tokyo Stock Exchange : Standard Market

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 14, 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 3rd quarter period (January 1 to September 30, 2022)

(1) Operating Results

			Millions of yen
	Net sales	Operating income	Ordinary income
3rd quarter ended September 30, 2022	36,100	7.9%	11,894	7.0%	14,694	30.4%
3rd quarter ended September 30, 2021	33,469	50.2%	11,113	117.2%	11,266	112.4%
	Income	Earnings per share
	attributable to	Diluted EPS (yen)
	(yen)
	owners of parent
3rd quarter ended September 30, 2022	10,208	26.1%	118.92	118.63
3rd quarter ended September 30, 2021	8,096	107.9%		93.45		93.24

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, 2022 12,869 million (50.1%) 3rd quarter ended September 30, 2021 8,571 million (124.6%)

2. Financial Position

		Millions of yen
	Total assets	Net assets	Equity ratio
As of September 30, 2022	100,926	90,726	89.6%
As of December 31, 2021	94,460	82,919	87.5%
Note: Owners equity As of September 30, 2022	90,440 million
As of December 31, 2021	82,683 million

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2. Dividends

		Cash dividends per share (yen)
	1st quarter	2nd quarter 3rd quarter	Year-end	Annual
Year ended December 31, 2021	17.00		20.00		37.00
Year ending December 31, 2022	22.00
Year ending December 31, 2022				22.00		44.00
(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, 2022) Millions of yen

				Income	Earnings per
		Operating		attributable to
			share (yen)
	Net sales	income	Ordinary income	owners of parent
Full year	48,588 8.3 %	14,918 8.5 %	18,024 29.2 %	12,573 24.5 %	146.47
Notes: 1.	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
4. 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
5. Number of ordinary shares outstanding at the end of the period (including treasury stock)

As of September 30, 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 September 30, 2022:	8,743,829 shares
As of December 31, 2021:	8,094,386 shares

Average number of shares during the period

3rd quarter ended September 30, 2022: 85,843,377 shares

3rd quarter ended September 30, 2021: 86,637,649 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, CPI has increased thanks to demand increases by prompt economic recover after pandemic. Unease of energy supply has increased due to the Russian invasion of Ukraine. So uncertainty for future was increasing.

In Japanese economy, economic activities were very low because raw material prices increased and to procure components was difficult.

Under these circumstances, all 3 segments sales increased. Operating income increased as well.

As a result, the Group sales were ¥36,100,208 thousand (+7.9% year on year), operating income was ¥11,894,028 thousand (+7.0%), ordinary income was 14,694,739 thousand (+30.4%) and income attributable to owners of parent for the quarter was ¥10,208,569 thousand (+26.1%).

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 at the changed segment.

（Dental segment）

In Dental segment, Domestic sales decreased because the reaction that clinics received subsidy from government last year and Asia sales decreased as well.

However North America sales increased dramatically and Europe sales increased as well. Total dental sales increased. Segment profit was almost the same.

As a result, sales were 30,301,499 thousand (+5.7%) and segment profit was 12,727,332 thousand (+4.5%).

(Surgical segment)

In Surgical segment, Asia sales decreased but Domestic, North America and Europe sales increased. Total sales increased. Segment profit increased as well.

As a result, sales were 2,393,080 thousand (+17.2%) and segment profit was 1,233,333 thousand (+20.9%).

（Industrial segment）

In Industrial segment, Asia sales decreased but Domestic, North America and Europe sales increased. Total sales increased. Segment profit increased as well.

As a result, sales were 3,405,627 thousand (+24.0%) and segment profit was 1,310,459 thousand (+28.0%).

1. Explanation of Financial Position (Assets, liabilities and net asset)
   Total assets at the end of 3rd quarter were 100,926,970 thousand and increased by 6,466,050 thousand compared with the end of the previous fiscal year. The main reasons were that Buildings and structures by 1,851,924 thousand, Shares of subsidiaries and associates by 1,555,285 thousand and Raw materials and supplies by 1,361,299 thousand.
   Total liabilities were 10,200,790 thousand and decreased by 1,340,655 thousand compared with the end of the previous fiscal year. The main reason was Other in current liabilities decreased by ¥1,470,458 thousand.
   Net asset was 90,726,180 thousand and increased by 7,806,706 compared with the end of the previous fiscal year. The main reasons were that Retained earnings increased by ¥6,600,186 thousand and Foreign currency translation adjustment by ¥2,857,689 thousand.
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1. Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information Our company will revise our business performance forecasts it released on May 12, 2022.
   The following table shows our forecasts of business performance for the fiscal year 2022.

Full year

	The amount	%
Sales	48,588 million	8.3
Operating income	14,918 million	8.5
Ordinary profit	18,024 million	29.2
Net income attributable to	12,573 million	24.5
owners of parent
(Note) Percentage figures represent year-on-year comparisons.

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