Flash Report for 1st quarter Ended Mar. 31, 2026

May 14, 2026

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 and Group CFO Tel: +81-289-64-3380 Scheduled date to begin dividend payments: -

Supplementary materials to quarterly financial statements: Applicable Quarterly earnings results briefing: Not applicable

(All amounts are rounded down to the nearest million yen.)

1. Consolidated financial results for 1st quarter period (January 1 to March 31, 2026)

   (1) Operating Results

   Millions of yen

   Net sales EBITDA Operating income

   1st quarter ended March 31, 2026	22,488	21.3%	5,876	23.6%	4,675	39.1%
   1st quarter ended March 31, 2025	18,542	2.1%	4,755	-10.1%	3,361	-15.7%

   Ordinary income

   Millions of yen

   Income attributable to owners of parent

   Earnings per share (yen)

   Diluted EPS (yen)

   1st quarter ended March 31, 2026	5,548	111.2%	3,980	803.9%	47.93	47.76
   1st quarter ended March 31, 2025	2,626	-47.9%	440	-86.8%	5.23	5.21

   Notes: 1. Percentage figures for net sales, operating income, ordinary income and net income represent year-on-year comparisons.

2. Comprehensive income for reporting period:

   1st quarter ended March 31, 2026 4,652 million (-%)

   1st quarter ended March 31, 2025 -2,658 million (-%)

3. EBITDA (Operating income + Depreciation + Goodwill amortization)

(2) Financial Position

Millions of yen

Total assets Net assets

Equity ratio

As of March 31, 2026 165,775 116,401 70.0%

As of December 31, 2025 160,155 114,074 71.0%

Note: Ownersʼ equity As of March 31, 2026 116,005 million

As of December 31, 2025 113,678 million

1. Dividends

   Cash dividends per share (yen)

   1st quarter 2nd quarter 3rd quarter Year-end Annual

   Year ending December 31, 2025 ̶ 26.00 ̶ 28.00 54.00

   Year ending December 31, 2026	-
   Year ending December 31, 2026 (forecast)		30.00	-	30.00	60.00

   Notes: 1. Revisions to dividend payment forecasts during the period: Not applicable

2. Business Performance Forecasts for the Current Term (January 1 to December 31, 2026)

   Millions of yen

   Net sales

   Operating

   income Ordinary income

   Income attributable to owners of parent

   Earnings per share (yen)

   First-half period	44,374	13.2	7,481	-1.4	7,501	8.2	5,308	51.2	63.53
   Full year	90,185	11.1	16,215	15.1	16,091	-5.0	11,193	-	133.96

   Notes: 1. Percentage figures represent year-on-year comparisons.

   2. Revisions to performance forecasts during the period: Not applicable

3. 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

      1. Changes in accounting principles due to revision of accounting standards, etc.: Not applicable

      2. Changes in accounting principles other than 1: Not applicable

      3. Changes in accounting estimates: Not applicable

      4. Restatement: Not applicable

   4. Number of ordinary shares outstanding at the end of the period (including treasury stock) As of March 31, 2026: 92,218,200 shares

As of December 31, 2025: 93,418,200 shares

Number of shares of treasury stock at the end of the period As of March 31, 2026: 9,173,418 shares

As of December 31, 2025: 10,373,418 shares

Average number of shares during the period

1st quarter ended March 31, 2026: 83,044,782 shares

1st quarter ended March 31, 2025: 84,273,704 shares

Table of Contents

1. Qualitative Information on Quarterly Financial Results 4

   1. Explanation of Results of Operations 4

   2. Explanation of Financial Position 5

   3. Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking

      Information 5

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 Shareholdersʼ Equity) 10

(Changes in the scope of consolidation during the period) 10

(Segment Information） 11

1. Qualitative Information on Quarterly Financial Results

   1. Explanation of Results of Operations

      During the consolidated first quarter, the global economy continued to grow, led by the United States. However, uncertainty over trade policies, rising geopolitical risks in the Middle East, and unclear monetary policy outlooks heightened cautious sentiment among businesses and consumers. In Europe, a modest recovery continued, supported by fiscal expansion mainly in Germany, though higher energy prices and geopolitical risks slowed growth.

      In Japan, capital investment remained resilient on the back of solid corporate earnings. However, personal consumption remained weak, as rising prices continued to pressure households and real wage recovery was limited.

      Against this backdrop, all business segments̶Dental, DCI, Surgical, and Industrial̶recorded double-digit revenue growth. As a result, net sales increased 21.3% year on year, or 14.9% excluding foreign exchange effects.

      Gross margin improved due to increased production at the head office factory. However, gross profit margin declined by 2.2 percentage points year on year, mainly due to higher unrealized profits and the impact of U.S. tariffs. EBITDA and operating profit increased, driven by higher sales and lower-than-planned R&D expenses.

      In addition, improvements in foreign exchange gains and the absence of Income taxes for prior periods led to a significant increase in quarterly profit attributable to owners of the parent.

      As a result, the Group sales were ¥ 22,488,730 thousand (+21.3% year on year), EBITDA 5,876,171 thousand (+23.6%), operating income was ¥4,675,272 thousand (+39.1%), ordinary income was

      5,548,768 thousand (+111.2%) and income attributable to owners of parent for the quarter was

      ¥3,980,320 thousand (+803.9%).

      The following is a breakdown of business performance by segment.

      Beginning with the first quarter of the current consolidated fiscal year, we have changed the method of calculating profit or loss for reportable segments. Specifically, for the purpose of more appropriately evaluating the performance of each segment, research and development expenses that were previously recorded under adjustment items are now allocated to each segment. Segment information for the first quarter of the previous consolidated fiscal year has been prepared based on the revised calculation method and is presented accordingly.

      （Dental segment）

      In Dental segment, Other areas sales decreased but Domestic, North America, Europe and Asia sales increased. Segment EBITDA and segment operating income increased as well.

      As a result, sales were 13,199,989 thousand (+16.6%), segment EBITDA was 4,978,055 thousand (+12.6%) and segment operating income was 4,403,026 thousand (+13.9％).

      （DCI segment）

      In DCI segment, sales increased due to demand ahead of price increase. Segment EBITDA and segment operating income increased as well.

      As a result, sales were 5,832,344 thousand (+28.3%), segment EBITDA was 587,299 thousand (+34.5%), and segment operating income was 193,975 thousand.

      (Surgical segment)

      In Surgical segment, Domestic, North America, Europe and Asia sales increased. Segment EBITDA and segment operating income increased as well.

      As a result, sales were 1,596,049 thousand (+37.1%), segment EBITDA was 817,020 thousand (+39.0%) and segment operating income was 781,919 thousand (+42.1％).

      （Industrial segment）

      In Industrial segment, Domestic, North America, Europe and Asia sales increased. Segment EBITDA and segment operating income increased as well.

      As a result, sales were 1,860,346 thousand (+23.4%), segment EBITDA was 546,533 thousand (+285.2%) and segment operating income was 469,906 thousand (+620.9％).

   2. Explanation of Financial Position (Assets, liabilities and net assets)

      Total assets at the end of the first quarter were 165,775,239 thousand and increased by 5,619,775 thousand compared with the end of the previous fiscal year. The main reason was that Other of Investments and other assets increased by 6,449,555 thousand.

      Total liabilities were 49,373,258 thousand and increased by 3,292,236 thousand compared with the end of the previous fiscal year. The main reason was that Short-term borrowings increased by

      4,953,963 thousand.

      Net assets were 116,401,980 thousand and increased by 2,327,539 thousand compared with the end of the previous fiscal year. The main reasons were that Retained earnings increased by ¥ 1,655,066 thousand, but Capital surplus decreased by 1,728,986 thousand and Treasury shares decreased by

      1,728,986 thousand.

   3. Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information We will not change the forecast announced on March 5, 2026.

First-half period

Full year

(Note) Percentage figures represent year-on-year comparisons.

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