Slide 1: Presentation Material for the year ended Dec. 31, 2022
Presentation Material for the year ended Dec. 31, 2022 February 17, 2023 NAKANISHI INC. Disclaimer T h e i n f or m at i on p r e s en t ed i n t h es e m at er i al s c on t ai n s for w a r d - l o o k i n g s t at e m en t s ab ou t fut ur e business performance. These statements by definition in
Slide 2: Changes in reporting segments
Changes in reporting segments 1. “Surgical Business” was separated from the previous reporting segment “Dental Products” and individually established Key changes 2. Abolition of the previous reporting segment “Others (mainly included repair services)”, which will be included in each new reporting se
Slide 3: Product lineup
Product lineup Dental business Dental hand piece Oral surgery system Oral hygiene system Clinical micromotor Surgical business Console Slim motor Attachment Bur Industrial business Controller Spindle Micro grinder Ultrasonic grinder © 2023 NAKANISHI INC. 3
Slide 4: Agenda
Consolidated financial forecast for FY2023 Consolidated financial result for FY2022 P. 5 Consolidated financial forecast for FY2023 P. 16 Overviews of each segment and future initiatives P. 20 © 2023 NAKANISHI INC. 4
Slide 5: Consolidated financial result for FY2022
Consolidated financial result for FY2022 5
Slide 6: Performance highlights of FY2022
Performance highlights of FY2022 A chieved record-high performance for the past two consecutive years by capturing strong global demand. Maintained the same sales level as the previous fiscal year when significant increase in sales had been achieved, even excluding the forex impact. D ue to the succ
Slide 7: Consolidated profit and loss statement
Consolidated profit and loss statement M of JPY FY2022 FY2021 YoY Comparison FY2022 Forecast Upward revision Actual Actual Amount Ratio on Nov. 11 vs. Forecast Net sales 48,671 44,857 +3,813 +8.5 % 48,588 +0.2 % Gross profit 31,221 27,295 +3,926 +14.4 % 30,942 +0.9 % Ratio to net sales 64.1 % 60.8 %
Slide 8: Transition of earnings structure
Transition of earnings structure M of JPY Amount Composition ratio 60,000 Net sales 48,671 Net sales 44,857 48,671 50,000 COGS% 44,857 100% YoY Net sales YoY 90% -3.2 pt 40,000 17,449 +3,813 80% 39.1% 35.9% COGS +8.5% COGS% Costs of overseas sales were 17,562 70% decreased due to the Excluding the f
Slide 9: Change in net sales by business segment
Change in net sales by business segment M of JPY + 3,813 24,000 FY2021 FY2022 Change Actual Actual + 8.5% 22,000 48,671 +398 +745 Dental 38,257 40,926 +7.0 % Industrial 20,000 Surgical +2,669 +19.4% +14.4% 44,857 Surgical 2,761 3,160 +14.4 % 18,000 Dental 16,000 +7.0% Industrial 3,839 4,584 +19.4 %
Slide 10: Change in net sales by region
Change in net sales by region M of JPY + 3,813 24,000 FY2021 FY2022 Change Actual Actual + 8.5% 48,671 22,000 Japan 9,439 8,891 -5.8 % -89 +692 Asia Others +2,336 Europe 14,010 15,432 +10.2 % -1.2% +11.7% 20,000 18,000 44,857 +1,421 N. America N. America 8,284 10,620 +28.2 % -547 +28.2% Japan Europe
Slide 11: Change in operating profit by segment
Change in operating profit by segment M of JPY + 1,638 FY2021 FY2022 Change + 11.9% 7,800 Actual Actual 7,300 +305 -402 15,389 +268 Industrial Dental 15,556 17,024 +9.4 % Corporate 6,800 Surgical +22.2% expenses +20.6% Surgical 1,303 1,571 +20.6 % +1,467 6,300 5,800 13,750 Industrial 1,377 1,683 +22
Slide 12: Change in operating profit
Change in operating profit M of JPY FY2021 FY2022 Average Average USD JPY 109.84 → JPY 130.77 + 1,638 EURO JPY 130.08 → JPY 137.90 8,000 + 11.9% 15,389 7,000 + 297 -378 + 286 -199 6,000 13,750 + 2,565 Product mix Increase in Increase Increase in -933 5,000 selling expenses in demand personnel expens
Slide 13: OP profit and profit attributable to owners of parent
OP profit and profit attributable to owners of parent M of JPY Operating profit 15,389 Dividends income 638 Non-operating Equity in earnings of affiliates 812 Non-operating profit 2,629 profit Foreign exchange gain 610 Non-operating expenses 372 Non-operating Loss on investments in expenses money he
Slide 14: Consolidated balance sheet
Consolidated balance sheet M of JPY As of Dec. 31, As of Dec. 31, Change Note 2022 2021 Total assets 102,154 94,460 +7,693 Buildings and structures +2,680 - Cash and deposits 34,992 35,984 -991 - Notes and accounts receivable - trade 6,106 5,348 +757 Merchandise and finished goods +1,344 - Inventori
Slide 15: Consolidated cash flow statement
Consolidated cash flow statement M of JPY 25,000 C a sh fl o w s f ro m C a sh fl o w s f ro m C a s h fl o w s f ro m Effect of exchange 23,000 operating activities investing activities financing activities rate change 21,000 -6,314 19,000 +7,764 17,000 15,000 34,887 Purchase of non-current assets
Slide 16: Consolidated financial forecast for FY2023
Consolidated financial forecast for FY2023 16
Slide 17: Consolidated financial forecast for FY2023
Consolidated financial forecast for FY2023 M of JPY FY2023 FY2022 Change Note Forecast Actual Amount Ratio Net sales 52,272 48,671 +3,601 +7.4 % Gross profit 33,965 31,221 +2,743 +8.8 % Ratio to net sales 65.0 % 64.1 % +0.8 pt — Operating profit 15,070 15,389 -318 -2.1 % Ratio to net sales 28.8 % 31
Slide 18: Change in net sales by business segment
Change in net sales by business segment M of JPY + 3,601 15,000 + 7.4% FY2022 FY2023 Change Actual Forecast 14,000 -1,324 52,272 +2,357 Dental 40,926 43,516 +6.3 % -22 13,000 Surgical Industrial 12,000 -0.7% +51.4% Surgical 3,160 3,137 -0.7 % 11,000 +2,590 10,000 48,671 Dental Industrial 4,584 6,942
Slide 19: Change in operating profit
Change in operating profit M of JPY FY2022 FY2023 Actual Forecast USD 130.77 JPY → 125.00 JPY - 318 EURO 137.90 JPY → 135.00 JPY 11,000 - 2.1% + 908 -890 10,000 9,000 Product mix Increase in selling expenses 8,000 -2,104 + 3,159 -426 15,389 Increase in 7,000 personnel Increase in -966 15,070 6,000 e
Slide 20: Overviews of each segment and future initiatives
Overviews of each segment and future initiatives 20
Slide 21: History of consolidated net sales
History of consolidated net sales Achieved record-high sales for the past two consecutive years. Maintained the same level as the previous year even excluding the forex impact. Q1 Q2 Q3 Q4 6,000 11.9 12.4 BofJPY 11.6 BofJPY 12.5 BofJPY YoY YoY YoY YoY +0.6 B of JPY +0.8 B of JPY +1.1 B of JPY +1.1 B
Slide 22: Global trend of net sales
Global trend of net sales B of JPY Sales recovered in Japan and Asia, with higher sales in all regions in the second half Europe 15.4 Dental Surgical Industrial Dental Surgical Industrial 8.8 N. America 10.6 YoY Dental Surgical Industrial YoY YoY +10.2 % Japan -5.8 % +28.2 % YoY Dental Surgical Indu
Slide 23: Progress of Mid Term Management Plan NV2025+ - Sales and profit target/KPI
Progress of Mid Term Management Plan “ NV2025+” - Sales and profit target/KPI M of JPY Mid Term Management Plan “NV2025+” 2020 - 2025 140 137.90 135 130.39 131.00 130 126.87 グラフ タイトル 130.08 122.53 122.01 130.77 125 EUR (JPY)120 124.00 USD (JPY)115 110 112.39 110.57 55,000 105 109.37 109.84 106.67 48
Slide 24: Mid Term Management Plan NV2025+: Progress in FY2022
Mid Term Management Plan “NV2025+”: Progress in FY2022 Turn the COVID-19 pandemic into an opportunity to expand business scale. Promoting initiatives to increase production capacity. Mid Term Management Plan Rolling Plan NV 2025 + Progress in FY2022 Basic Policy and Priority Measures Performance res
Slide 25: Focus market status: U.S.
Mid Term Management Plan “NV2025+”: Focus market status U.S. Our market share has expanded for seven consecutive fiscal years while that of competitors have remained sluggish. Record highs were achieved. Product lineup that captures the shift to electric motors Expansion of transactions Promote coll
Slide 26: Focus market status: China
Mid Term Management Plan “NV2025+”: Focus market status China Strengthen manufacturing and sales systems to ensure appropriate response to local policies Knockdown production factory 四川中西齿科设备制造有限公司 NSK Dental Manufacturing Co., Ltd. Despite the impact of the zero-COVID policy, suspension of visa iss
Slide 27: Operation started at the new factory A1+
Operation started at the new factory “A1+” A1+ Operating as a core production base to achieve mid- to long-term growth Increased parts production capacity Improved productivity Cultivation of technicians Installed 100 machine tools and 24-hour Streamlined the processing process that used Started an
Slide 28: Construction plan of new factory M1
Construction plan of new factory “M1” M1 Planned Location: In the premises of Headquarters Total floor area: Approx. 20,000 m2 Investment: Approx. 8.5 billion yen New assembly factory and Construction Start: April 2023 (scheduled) parts and finished goods warehouse Operation Start: First phase: Dece
Slide 29: Sustainability topics
Sustainability topics Environment Social Governance Rating Awarded the JEED President’s Carbon neutrality achieved at Effort Award for Excellence in Established Nomination and headquarters factory and A1 factory Employing Persons with Disabilities Remuneration Committee Improved ESG evaluation (GHG
Slide 30: Forecast of market trends and basic strategy
Forecast of market trends and basic strategy Forecast of market trends in 2023 - Demand - - Supply - Despite increasing uncertainty Expect parts prices continue to about the future, demand is be high while parts shortages expected to remain firm. would ease gradually Basic Strategy for 2023 Expand p
Slide 31: Dental business outline 1/3
Dental business outline 1/3 Japan Overview of Sales Measures for Sales FY2022 trend YoY FY2023 trend YoY Decline in demand after the Capturing the demand recovery termination of subsidies bottomed phase, expand sales of handpieces out and sales began to increase in H2. for dental treatment and impla
Slide 32: Dental business outline 2/3
Dental business outline 2/3 North Overview of Measures for Sales Sales America FY2022 trend YoY FY2023 trend YoY Significant growth in sales through Continue sales expansion of our major dealers covering the entire main products U.S. Market share reached a record high. Approach dental universities a
Slide 33: Dental business outline 3/3
Dental business outline 3/3 Others Overview of Sales Measures for Sales FY2022 trend YoY FY2023 trend YoY Expect an increase in sales by Middle Sales grew due to ongoing recovery continuing to respond to bidding East in demand after the COVID-19 pandemic. for governmental hospitals and university ho
Slide 34: Surgical business outline
Surgical business outline Overview of FY2022 Achieved record-high sales due to successful global sales promotion campaigns and sales expansion of burs YoY Japan Sales grew due to stable supply through domestic production, steadily capturing demand from new customers. YoY Europe Achieved sales plan w
Slide 35: Continued approach to the otology field
Surgical business topics Continued approach to the otology field October 20, 2022 at PACIFICO Yokohama North Hands-on seminar on temporal bones at the 32nd Annual Meeting of The Japan Otological Society © 2023 NAKANISHI INC. 35
Slide 36: Industrial business outline
Industrial business outline Overview of FY2022 Despite a slowdown in production due to parts shortages, fulfilled orders received and achieved record-high sales for two consecutive fiscal years. YoY Japan Production continued to be unable to keep up with the large number of orders from a wide range
Slide 37: Alfred Jäger - company profile
Alfred Jäger - company profile Specialized manufacturer of industrial spindles Founded: 1967 Established: November 2000 Headquarters: Ober-Moerlen GERMANY Main product: High-frequency spindles High performance motors Employee: 120 Headquarters and motor factory Spindle factory Business segment: Indu
Slide 38: NAKANISHI x Jäger
NAKANISHI ✖ Jäger Each has a different application, product characteristics and main market Automobile, Smart Phone, Robot, Application Dental CAD/CAM, PCB, Medical Equipment, etc. by industry PCB, Robot, etc. Diameter of Φ 19 - Φ 50 mm main product Φ 30 - Φ 150 mm Maximum 1,200 watts power 20,000 w
Slide 39: JIMTOF2022
Industrial business topics JIMTOF2022 November 8 to13, 2022 at Tokyo Big Sight Participated in one of the largest machine tool trade fairs in Japan for the first time in 4 years. Many examples of collaboration with system integrators (25 companies) were exhibited. © 2023 NAKANISHI INC. 39
Slide 40: NSK
NSK