To p M essage oOur Shareholders]
I would like to take this opportunity to express my gratitude to our shareholders for your
continued support.
In the first half of FY2025, we emerged from the downturn following the COVID-19-driven demand and entered a phase of gradual demand recovery. Although the business environment faced headwinds, including the stronger JPY and U.S. tariff policies, our Dental, Surgical, Industrial, and DCI seg ments remained generally firm. As a result, consolidated net sales totaled JPY 39.1 billion and EBITDA came to JPY 10.3 billion. Due to recording foreign exchange losses and income taxes for prior periods, ordinary profit was JPY 6.9 billion and profit attributable to owners of parents amounted to JPY 3.5 billion.
In March this year, the entire NAKANISHI Group exhibited at "IDS 2025," the world's largest dental trade show held in Cologne, Germany, and conducted vigorous marketing activities. The new dental handpieces and preventive dentistry products we unveiled to dentists and distribution partners from around the world were very well received, and we secured numerous business negotiations during the exhibition. We expect these initiatives to contribute to the expansion of our business performance going forward.
In the upcoming year 2030, NAKANISHI will celebrate its 100th anniversary. In anticipation of this important milestone, and to clarify the path the NAKANISHI Group should pursue, we formulated and announced our new Mid Term Management Plan, "NV2030." Leveraging the "grinding technology" we have honed since our founding, we will create "brilliant prog ress" in this world. By realizing our mission, we will shape a better future. All employees of the NAIfANISHI Group spread across the globe will advance as one team toward the next 100 years.
We hope that we can continue to count on your support as we achieve further growth.
Eiichi Nakanishi
President & Group CEO
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Financial Summary
Financial results in the first half of FY2025
In the first half of FY2025, net sales were roughIy in line with the same period of the previous year. Although the stronger JPY reduced net sales, the significant growth of the Surg ical segment and the steady performance of the Dental and DCI segments underpinned net sales. Meanwhile, SG&A expenses increased due to our participation in dental trade shows and the strengthening of the sales structure for the U.S. and Surgical segments, resulting in lower EBITDA. In addition, the recording of foreig n exchange losses and income taxes for prior periods led to a dec line in profit.
Profit attributable to owners of parents
Ordinary profit
EBITDA*
Net sales
YOY
39.1 BofJPY +1.6% 1 0.3 BofJPY -6.0% 6.9 BofJPY -34.1% 3.5 BofJPY -50.0%
"EBITDA =Operating profit + Depreciation +Amortization
B of JPY First half Full year B of JPY First half Full year B of JPY First half Full year B Of J PY First half Full year
2023 2024 2025 2023 2024 2025
Financial forecast for FY2025
Reviewing the financial results for the first half of FY2025, although progress toward the full-year financial forecast was high, we have left the forecast unchanged. The U.S. tariff policy that took effect this FY has had an impact on our results, and tariff-related cost increases are expected to materialize from the second half. We expect the first-half outperformance against plan to be offset by these tariff effects. The exchange rates assumed for this financial forecast are 1 USD = 145 JPY and 1 EUR = 155 JPY.
2023 2024 2025 2023 2024 2025
80.6 B of JPY +4.7 •
1 8.9 B of JPY -7.5x
1 3.8 B of JPY -19.9 •
Assumed exchange rates
Profit attributable to
owners of parents
8.3 B of JPY -2.4 •
1 USD = 145 JPY
1 EUR = 155 JPY
02
Business Domain
Dental Business
Engages in the development, manufacture, and sale of dental equipment for a range of dental treatment, including restorative dentistry, periodontics, oral surgery, and mobile dental care.
Its operating results include those of Refine, which was acquired in 2023.
DCI Business
Established as a new segment to present performance of DCI, the U.S. dental chair manufacturer acquired in 2023. Engages in the development, manufacture, and sale of dental chairs and related equipment in the North American market.
Surg ical 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.
Dental handpiece Ti-Max Z Series
Dental chair
DCI Edge Series 5+
Oral surgery system Clinical micro motor Oral hygiene system Surgic Pro2 NLZ Varios Combi Pro2
Dental cabinet Dental parts
Total surgical system Surgical motor Attachment Disposable bur Primado2 control unit P200-SM H Series P300Attachment Attachment burs
Industrial Business
Engages in the development, manufacture, and sale of motor spindles used in micromachining and precision processing in a wide range of manufacturing fields such as the automobile and precision equipment industries.
Its operating results include those o* Jaeger, which was acquired in 2022.
NAItANI SHI spindie Motor spindIe E-4000 Series E-3000i Series
Micro grinder Emax EVOlution
Jaeger spindIe
Hig h-frequency spindles
03