Nakanishi Inc.TSE: 7716

Presentation Material for fiscal year ended Dec. 31, 2025 (with Script)

Feb 19, 2026 at 5:41 AM UTC · Issued by Nakanishi Inc.

Presentation Material

for the year ended Dec. 31, 2025

Feb. 12, 2026

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 e c on o m y a n d f l u c t u a t i o n s i n f o r e i g n c u r r e n c y e x c h a n g e r a t e s a n d s o o n .

Clinical micro motor

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

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.

Consolidated Financial Result for FY2025

Corporate Vice President & Group CFO Daisuke Suzuki

I am Suzuki, Corporate Vice President & Group CFO. I would like to start with the briefing.

Performance Highlights

N YoY. The Dental, DCI, and Industrial businesses also performed steadily. As a result,

et sales were in line with the plan. The Surgical business grew significantly by 28%

consolidated net sales landed at +5% YoY.

ersonnel expenses and selling expenses were increased to drive business growth,

and these were absorbed by higher profit from sales growth. However, in the second

half, higher costs due to U.S. tariffs became evident and put pressure on profit.

Consolidated EBITDA was -3% YoY, but landed at +5% compared to the plan.

he DCI business progressed in line with the Mid Term Plan scenario. However, an

impairment loss was recognized in order to reflect the profit decline caused by U.S.

tariffs. As a result, net loss was 2.3 billion yen. A total payout ratio of 61% was maintained,

based on adjusted net profit after excluding impairment losses, etc.

First, I will explain the performance highlights.

Net sales were generally in line with the plan. Our full-year forecast had been prepared on the assumption that market conditions would improve from the first half to the second half. Actually, we achieved very strong growth in the second half, particularly in the fourth quarter. In addition, our surgical business, which serves as a key growth driver, expanded more than expected and contributed significantly to results.

Next, I will explain EBITDA. For the fiscal year, we had factored in higher personnel and selling expenses as upfront investments for future growth. These included the expansion of DCI business and surgical business, as well as our participation in IDS 2025, the world's largest dental exhibition. We had anticipated that the returns from these growth investments would materialize from 2026 onward; however, we began seeing earlier-than-expected results in such as DCI, surgical, and dental Europe businesses.

On the other hand, there were also negative factors. One such factor was the impact of U.S. tariff policies (including tariffs on China) that took effect in April 2025. Our exports to the United States and certain material imports by DCI were heavily affected by these tariffs. This became a major driver of reduced profit for the fiscal year and was a key factor leading to the impairment at DCI.

	Actual	Actual	Ratio	As of May 12	Ratio
Net sales	81,179	77,041	+5.4%	80,655	+0.6%
Gross profit	46,060	44,418	+3.7%	44,784	+2.8%
Ratio to net sales	56.7%	57.7%	-	55.5%	-
EBITDA ＊	19,899	20,460	-2.7%	18,932	+5.1%
Margin	24.5%	26.6%	-	23.5%	-
Operating profit	14,089	14,596	-3.5%	13,150	+7.1%
Ratio to net sales	17.4%	18.9%	-	16.3%	-
Ordinary profit	16,933	17,283	-2.0%	13,840	+22.4%
Ratio to net sales	20.9%	22.4%	-	17.2%	-

			Ratio to net sales	-3.0%	11.1%	-	10.4%	-
E	P	S	（JPY）	-28.70	101.37	-	-	-

Currency rate	- Against the US dollar (JPY)	150.43	151.44	-1.01	145.00	+5.43
	- Against the EURO (JPY)	169.18	163.80	+5.38	155.00	+14.18

Consolidated P/L

FY2025

FY2024

FY2025 Forecast

Profit attributable

to owners of parent

-2,398

8,577

8,372

＊ EBITDA = Operating profit + Depreciation + Amortization

Forex impact: Net sales +275M of JPY (vs FY2024 Actual), +3,175M of JPY (vs FY2025 Forecast)

M of JPY

Let me explain the consolidated income statement. Foreign exchange impact:

Both the US dollar and the euro remained largely flat. Although the yen trended weaker, the impact on our business was minimal. As a result, changes in our performance for the period were driven almost by organic business growth.

Net sales:

Sales increased by 5.4% year-on-year, achieving growth in line with the 5-6% CAGR target set in our Mid Term Management Plan.

EBITDA:

Although the effects of the upfront investments were appearing, EBITDA decreased due to a tariff impact of approximately 1.3 billion yen occurred over the full year. If we add back this 1.3 billion yen, EBITDA would in substance have been at the level of about 21 billion yen. The organic trend was solid.

Net income:

We recorded a net loss of approximately 2.4 billion yen, due to the impairment of goodwill at DCI. I will explain the background of this impairment in more detail later.