Briefing Material
for 3rdquarter ended Sep. 30, 2025
Nov. 6, 2025
NAKANISHI INC.
Disclaimer
The information presented in these materials contains forward-looking statements about future
business performance. These statements by definition involve risks and uncertainties and are not intended to guarantee future performance. Actual results in the future may differ from expectations and the projections presented in these materials due to changes in the global economy and fluctuations in foreign currency exchange rates and so on.
© 2025 NAKANISHI INC.
I am Suzuki, Corporate Vice President & Group CFO. Thank you for joining the conference call.
Without further ado, I would like to start with the briefing.
Clinical micro motor
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© 2025 NAKANISHI INC.
Bur
Attachment
Surgical motor
Console
Surgical Business
Development, production and sales of bone grinding and cutting drills which can be used in areas of neurosurgery,
spine surgery and orthopedic surgery.
Dental parts
Dental cabinet
Dental chair
DCI Business
Presenting results of DCI, the U.S. dental chair manufacturer, acquired in 2023, as an independent segment.
Development, production and sales of
dental chairs and related equipment for the North American market.
Oral hygiene system
Implant motor
Handpiece
Dental Business
Development, production and sales of wide range of dental equipment, which cover such as restorative dentistry, periodontics, oral surgery, mobile
dental care, etc.
Product Lineup
Ultrasonic cutter
Electric hand grinder
Controller & Spindle
Controller & Spindle
Industrial Business
Development, production and sales of spindles which can be used in high-precision processes in wide range of industrial areas such as automobile and
precision parts industries.
Performance Highlights
N
et sales were in line with the plan. Surgical segment maintained a high growth rate,
Dental and DCI segments remained solid, and Industrial segment returned to revenue
growth, resulting in a consolidated net sales increase of +3.8% YoY.
T
he impact of U.S. tariff policies became evident in Q3. Although the profitability of DCI
segment has declined, it remains within expectations. EBITDA decreased YoY, but it
exceeded the plan.
A
lthough there are some positive signs, such as reductions in U.S. tariffs on China, the
outlook for U.S. demand remains uncertain. The full-year forecast announced on May
12 remains unchanged.
© 2025 NAKANISHI INC.
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Let me begin with the performance highlights. There are three key points.
The first point is the top line. Although demand was relatively weak in fiscal year 2024, it has been recovering more strongly than initially expected as the current period has progressed.
Our surgical business, which is a key investment area, has also shown a high growth rate. Sales for the three-month period in Q3 increased by 37%. We are seeing an acceleration in top line growth.
In summary, the first key point is that demand trends across our business segments are improving.
The second key point is the impact of U.S. tariff policies, which has started to appear in our profit and loss statement.
Thanks to the strong performance across our business segments, this has not led to a significant overall decline. However, in the DCI business, which is particularly affected by the tariff policies, profits in Q3 saw a substantial decrease. Given that these tariff policies are expected to continue, they pose a major challenge for the DCI business going forward.
The third key point is that we have maintained our financial forecast. While our performance through Q3 has been strong and has exceeded our initial forecasts, we concluded that it is unlikely that it will significantly exceed the current forecast. This is because Q4 has a relatively high performance target, and we must also consider the continued impact of tariff policies and signs of weakening demand in the U.S. market.
Based on these three points, I will now explain our consolidated financial results.
FY2025Q3 | FY2024Q3 | Forecast | |||||
Actual | Actual | Ratio | (As of May 12) | Ratio | |||
Net sales | 58,752 | 56,621 | +3.8% | 58,311 | +0.8% | ||
Gross Profit | 33,541 | 32,924 | +1.9% | 32,103 | +4.5% | ||
Ratio to net sales | 57.1% | 58.1% | - | 55.1% | - | ||
EBITDA ＊ | 14,786 | 15,597 | -5.2% | 12,983 | +13.9% | ||
Margin | 25.2% | 27.5% | - | 22.3% | - | ||
Operating Profit | 10,540 | 11,392 | -7.5% | 8,646 | +21.9% | ||
Ratio to net sales | 17.9% | 20.1% | - | 14.8% | - | ||
Ordinary Profit | 10,934 | 12,280 | -11.0% | 9,240 | +18.3% | ||
Ratio to net sales | 18.6% | 21.7% | - | 15.8% | - | ||
Profit attributable to owners of parent | 6,181 | 8,079 | -23.5% | 5,048 | +22.4 | ||
Ratio to net sales | 10.5% | 14.3% | - | 8.7% | - | ||
E | P | S (JPY) | 73.85 | 95.42 | - | - | - |
Currency rate | - Against the US dollar (JPY) | 148.82 | 150.61 | -1.79 | 145.00 | +3.82 |
- Against the EURO (JPY) | 165.51 | 163.86 | +1.65 | 155.00 | +10.51 |
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Consolidated P/L
＊ EBITDA = Operating profit + Depreciation + Amortization
Forex impact: Net sales -404M of JPY (vs FY2024Q3 Actual), +1,649M of JPY (vs FY2025 Forecast)
© 2025 NAKANISHI INC.
M of JPY
Let me begin with the key points from the consolidated income statement.
Sales is in line with our financial forecast, while EBITDA has exceeded expectations by approximately 13.9%. Selling, general and administrative expenses have progressed as planned, so this upside is attributable to gross profit.
We had projected a gross profit margin of 55.1%, but the actual result came in at 57.1%, about two percentage points higher.
The factors contributing to this upside include: (1) unrealized gains not factored into the forecast, and (2) a weaker yen compared to our assumed exchange rate, particularly against the euro.
Additionally, as a secondary factor, the improved sales mix driven by significant sales growth in our surgical business, which has the highest profit margin, also contributed to the higher gross margin.
+386 Surgical
+30.0%
5
FY2025Q3
Net sales
© 2025 NAKANISHI INC.
FY2024Q3
Net sales
56,621 58,752 -404 +3.8%
Total
+5 +2.5%
Industrial 4,982 5,107
Dental
+1.9%
-9 +30.0%
Surgical 3,207 4,168
DCI
+2.7%
+658
56,621
Change in Net Sales by Business Segment
14,305 14,692 -170 +2.7%
DCI
Industrial
+960 +2.5%
Dental 34,126 34,784 -230 +1.9%
58,752
+125
B/A-1
of which:
forex impact
Actual
B
Actual
A
Change
FY2024Q3 FY2025Q3
+2,130
+3.8%
M of JPY
Next, I will explain the sales status by business segment.
During the cumulative period of Q3, all segments (Dental, DCI, Surgical, and Industrial) achieved year-on-year sales growth.
In particular, the surgical business recorded strong growth, with an increase of 960 million yen, +30%, compared to the same period last year. For the three-month period of Q3 alone, sales grew by +36.7% year-on-year, indicating an acceleration in growth.
This growth does not include any gains from competitors exiting the market; it is purely the result of expansion in our existing business.
The sales channel expansion efforts we have pursued since the beginning of the fiscal year are bearing fruit, especially in the U.S. and European markets.
We expect the business to continue growing in the coming fiscal year as we further establish and strengthen our sales channels.