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NSK Presentation Material for 2nd quarter ended June 30 , 2026 Aug. 7 , 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 economy and fluctuations in foreign currency exchange rates and so on . © 2026 NAKANISHI INC .
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2 Business Segment and Product Lineup Handpiece Implant motor Oral hygiene system Clinical micro motor Dental chair Dental parts Console Surgical motor & Attachment Bur (Disposable) Perforator (Disposable) Controller & Spindle Speed - increasing spindle Ultrasonic cutter Tools Dental cabinet 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. 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. 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. 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. © 2026 NAKANISHI INC. The results of Acra Cut and Intech (acquired in 2026) are included in this Surgical Business.
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3 Consolidated Financial Result for FY2026 Q2 Corporate Vice President & Group CFO Daisuke Suzuki © 2026 NAKANISHI INC.
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Performance Highlights 4 © 2026 NAKANISHI INC. hareholder returns were enhanced following the revision of the full - year forecast. The share repurchase limit was raised from JPY 2.5 billion to JPY 4.0 billion, with the aim of achieving a total payout ratio of 70%, together with a two - for - one stock split. ll businesses — Dental, DCI, Surgical, and Industrial — achieved double - digit sales growth. In particular, the Dental business in Japan and the Surgical business grew significantly.* Backed by yen depreciation, consolidated net sales landed at +20.5% YoY. igher profit driven by sales growth across all businesses, coupled with contributions from the new consolidation of Acra Cut and Intech, drove consolidated EBITDA up 22.9% YoY. A H S * Acra Cut and Intech have been consolidated since Q2. Their results for April through December (9 months) are scheduled to b e i ncluded in the current fiscal year without a reporting lag. he full - year financial forecast has been revised upward based on first - half performance and recent business trends. Operating profit, ordinary profit, and net profit* are all expected to reach record highs. T * Excluding FY2023, when a one - off extraordinary income on the step acquisition of DCI was recorded.
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5 © 2026 NAKANISHI INC. Consolidated P/L M of JPY FY2026Q2 Actual FY2025Q2 Actual YoY comparison Amount Ratio Net sales 47,234 39,189 +8,045 +20.5% Gross Profit 27,424 23,104 +4,320 +18.7% Ratio to net sales 58.1% 59.0% - 0.9pt — EBITDA ＊ 12,769 10,390 +2,379 +22.9% Margin 27.0% 26.5% +0.5pt — Operating Profit 10,012 7,587 +2,425 +32.0% Ratio to net sales 21.2% 19.4% +1.8pt — Ordinary Profit 11,577 6,930 +4,646 +67.1% Ratio to net sales 24.5% 17.7% +6.8pt — Profit attributable to owners of parent 8,144 3,510 +4,634 +132.0% Ratio to net sales 17.2% 9.0% +8.3pt — E P S (JPY) 98.07 41.84 — — ＊ EBITDA = Operating profit + Depreciation + Amortization Currency rate - Against the US dollar (JPY) 158.30 149.01 +9.29 — - Against the EURO (JPY) 184.76 162.62 +22.14 — Forex impact: Net sales +2,884M of JPY (vs FY2025Q2 Actual), +2,448M of JPY (vs FY2026 Forecast)
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5,000 7,000 9,000 11,000 13,000 15,000 17,000 19,000 FY2025Q2 Net sales FY2026Q2 Net sales Dental +14.6 % 6 39,189 47,234 +3,429 +1,360 +935 +8,045 +20.5% +2,320 FY2025Q2 Actual A FY2026Q2 Actual B of which: forex impact Change B/A - 1 Dental 23,533 26,962 +1,976 +14.6% DCI 9,834 12,155 +613 +23.6% Surgical 2,548 3,909 +117 +53.4% Industrial 3,272 4,207 +177 +28.6% Total 39,189 47,234 +2,884 +20.5% Change in Net Sales by Business Segment M of JPY Industrial +28.6 % M&A effect (Surgical ) + 642M of JPY (+1.6%) Surgical +53.4 % © 2026 NAKANISHI INC. DCI +23.6 %
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5,000 7,000 9,000 11,000 13,000 15,000 17,000 19,000 FY2025Q2 Net sales FY2026Q2 Net sales Change in Net Sales by Region 7 39,189 +1,137 Japan +25.2 % +2,380 47,234 Europe +23.2 % N. America +25.7 % +3,903 +415 Asia +9.8 % Others +4.2 % +208 © 2026 NAKANISHI INC. M of JPY +8,045 +20.5% FY2025Q2 Actual A FY2026Q2 Actual B of which: forex impact Change B/A - 1 Japan 4,511 5,648 - +25.2% Europe 10,276 12,657 +1,307 +23.2% N. America 15,195 19,098 +924 +25.7% Asia 4,224 4,640 +208 +9.8% Others 4,981 5,190 +444 +4.2% Total 39,189 47,234 +2,884 +20.5% M&A effect (N. America ) +642M of JPY (+1.6%)
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0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 FY2025Q2 EBITDA Adjusted EBITDA FY2026Q2 EBITDA M&A effect 8 © 2026 NAKANISHI INC. Change in EBITDA Average exchange rate FY2025 Q2 FY2026 Q2 USD JPY 149.01 → JPY 158.30 EUR JPY 162.62 → JPY 184.76 Forex impact +1,156 +2,663 - 953 - 8 Increase in demand Cost rate factors Increase in selling expenses - 339 Increase in personnel expenses Increase in other expenses - 473 11,881 +2,379 +22.9% 10,390 12,769 M of JPY +334
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Dental DCI Surgical Industrial Corporate functions Cost incurred Expense recognition 9 © 202 6 NAKANISHI INC. Treatment of R&D Expenses in Business Segment Profit/Loss (From FY2026 Q1) Dental DCI Surgical Industrial Corporate functions Cost incurred Expense recognition Recorded as adj. R&D expenses R&D expenses R&D expenses R&D expenses Consolidated under Corporate expenses (adjustments) Previous Where identifiable, costs are directly allocated Future R&D expenses Recorded as adj. R&D expenses R&D expenses R&D expenses R&D expenses R&D expenses Directly charged to Industrial seg. P&L Directly charged to Surgical seg. P&L Directly charged to DCI seg. P&L Directly charged to Dental seg. P&L Corporate expenses Expenses by segment Consolidated at the corporate level (~FY2025Q4) (FY2026Q1~) Initiated growth investments in each business segment to achieve the NV2030 targets. Clearly identified R&D expenses for each business segment to enable more precise profitability management.
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1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 FY2025Q2 EBITDA FY2026Q2 EBITDA 10 10,390 +970 12,769 +589 +815 - 231 +235 +2,379 +22.9% © 2026 NAKANISHI INC. Actual FY2025Q2 A Actual after retrospective adjustment FY2025Q2 A ‘ Actual FY2026Q2 B Change B/A ‘ - 1 Dental 9,782 9,136 10,107 +10.6% DCI 1,233 1,233 1,469 +19.1% Surgical 1,408 1,304 1,894 +45.2% Industrial 531 474 1,290 +171.9% Corporate expenses - 2,565 - 1,759 - 1,990 - Total 10,390 10,390 12,769 +22.9% Forex impact (YoY) +1,156 M of JPY (+ 11.1 %) Change in EBITDA by Business Segment Corporate expenses M of JPY DCI +19.1 % Surgical +45.2 % Industrial +171.9 % Dental +10.6% M&A effect (Surgical) (YoY) +334 M of JPY (+ 3.2 %) (After retrospective adjustment for R&D expenses)
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0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Profit attributable to owners of parent Total income taxes, etc. Profit before income taxes Extraordinary losses Extraordinary income Ordinary profit Non - operating expenses Non - operating profit Operating profit Amortization Depreciation EBITDA 8,144 ・ Interest income 484 ・ Foreign exchange gain 1,130 ・ Miscellaneous income 190 Other Income, Expense, Taxes 11 Non - operating profit Non - operating expenses 12,769 ・ Interest expenses 189 ・ Miscellaneous losses 122 © 2026 NAKANISHI INC. 10,012 440 M of JPY 11,521 11,577 2,110 646 1,877 312 0 56 3,376 Extraordinary income Extraordinary losses ・ Gain on sale of non - current assets 0 ・ Loss on retirement of non - current assets 56
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Consolidated Balance Sheet 12 As of June 30, 2026 As of Dec. 31, 2025 Change Notes Total assets 174,551 160,155 +14,395 - Cash and deposits 56,375 61,317 - 4,941 - Inventories 27,189 25,565 +1,623 ・ Merchandise and finished goods +608 ・ Work in process +396 ・ Raw materials and supplies +618 - Goodwill 17,881 5,391 +12,490 Liabilities 52,541 46,081 +6,460 - Loans payable 33,880 26,772 +7,107 ・ Short - term borrowings +8,345 ・ Current portion of long - term borrowings +757 ・ Long - term borrowings - 1,994 Net assets 122,009 114,074 +7,935 ・ Foreign currency translation adjustment +1,657 - Retained earnings 115,865 110,046 +5,819 FY2026Q2 Actual FY2025Q2 Actual Change Notes Capital investments 6,245 3,101 +3,144 ・ Machinery and equipment 439 ・ New subsidiary buildings 5,163 Depreciation expenses 2,110 2,078 +32 © 2026 NAKANISHI INC. M of JPY
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0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Cash and cash equivalents at beginning of period 2026/01 Cash and cash equivalents at end of period 2026/06 13 45,964 40,448 +7,620 - 18,969 Free cash flows - 11,348 +4,741 +1,092 © 2026 NAKANISHI INC. Profit before income taxes +11,521 Depreciation +2,110 Amortization of goodwill +646 Foreign exchange gains - 904 Increase in trade receivables - 1,023 Income taxes paid - 3,845 Purchase of investments in subsidiaries - 13,248 Purchase of property, plant and equipment - 6,251 Purchase of intangible assets - 245 Short - term borrowings +11,000 Long - term borrowings +3,010 Dividends paid - 2,325 Repayments of short - term borrowings - 2,681 Repayments of long - term borrowings - 4,262 Consolidated Statements of Cash Flows Effect of exchange rate change M of JPY Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities
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14 © 2026 NAKANISHI INC. Cash Allocation Cash - in Strategic investments 13.5 B JPY 2025 - 2026H1 accumulation Capital investments 10.4 B JPY 2025 - 2026H1 accumulation Shareholder returns 9.6 B JPY 2025 - 2026H1 accumulation Cash - out Cash & marketable securities 35.0 - 55.0 B JPY Cash & marketable securities + Working capital 42.0 - 67.0 B JPY Strategic investments 20.0 - 60.0 B JPY Capital investments 32.0 - 38.0 B JPY | Plan | | Plan | Operating Cash Flow 23.9 B JPY 2025 － 2026H1 accumulation 20 - 24 % done Progress of cash allocation for NV2030 target 28 - 33 % done 16 - 21 % done Borrowings, etc. 20.0 - 40.0 B JPY | Actual | | Actual | Operating CF 1 00. 0 - 1 20. 0 B JPY Shareholder returns 45.0 - 60.0 B JPY 23 - 68 % done * * The progress amount excludes the amount related to the ongoing own share repurchase (Max. 4.0 B JPY).
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15 Consolidated Financial Forecast for FY2026 © 2026 NAKANISHI INC. Revised on August 7, 2026
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March 5, 2026 Upward Revision of Full - Year Financial Forecast #1 February 12, 2026 Initial Full - Year Financial Forecast Formulated at the Beginning of FY2026 August 7, 2026 Upward Revision of Full - Year Financial Forecast #2 © 2026 NAKANISHI INC. Assumptions for Full - Year Financial Forecast (Revised on Aug. 7) Expecting sales to increase in all businesses and net sales to reach JPY 88.1 billion (+9% YoY), thereby achieving record - high sales for the sixth consecutive year. Expecting increases in selling, personnel, and R&D expenses associated with growth investments to be offset by higher profits driven by sales growth, with EBITDA reaching JPY 20.6 billion (+4% YoY) and operating profit reaching JPY 15.6 billion (+11% YoY) due to reduced goodwill amortization. Assuming exchange rates of JPY 150/USD and JPY 170/EUR. Expecting ordinary profit of JPY 15.4 billion ( - 9% YoY) due to the absence of foreign exchange gains recorded in the previous fiscal year, and a return to net profit of JPY 10.9 billion, driven by the absence of one - off expenses and income taxes recorded in the previous fiscal year. The financial forecast was revised upward to reflect the results of the acquired companies, Acra Cut and Intech, for April through December 2026 (9 months). The full - year financial forecast was revised upward based on first - half performance and recent business trends in all businesses — Dental, DCI, Surgical, and Industrial. 16
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Revised forecast for FY2026 announced on Aug. 7 Previous forecast for FY2026 announced on Mar. 5 vs. Previous Fcst Amount Ratio FY2025 Actual YoY comparison Amount Ratio Net sales 94,480 90,185 +4,294 +4.8% 81,179 +13,301 +16.4% Gross profit 54,486 50,176 +4,309 +8.6% 46,060 +8,425 +18.3% Ratio to net sales 57.7% 55.6% +2.0pt ー 56.7% +0.9pt — EBITD A ＊ 1 24,340 21,854 +2,486 +11.4% 19,899 +4,441 +22.3% Margin 25.8% 24.2% +1.5pt ー 24.5% +1.2pt ー Operating profit 18,649 16,215 +2,433 +15.0% 14,089 +4,559 +32.4 ％ Ratio to net sales 19.7% 18.0% +1.8pt ー 17.4% +2.4pt ー Ordinary profit 19,062 16,091 +2,971 +18.5% 16,933 +2,128 +12.6 ％ Ratio to net sales 20.2% 17.8% +2.3pt ー 20.9% - 0.7pt ー Profit attributable to owners of parent 13,544 11,193 +2,351 +21.0% - 2,398 +15,943 ー Ratio to net sales 14.3% 12.4% +1.9pt ー - 3.0% +17.3pt ー E P S ( JPY) 163.10 133.96 ー ー - 28.70 ー ー Assumed currency rate Assumed exchange rate for 2nd - half Assumed exchange rate for 2nd - half - Against the US dollar （ JPY ） 155.00 150.00 +5.00 Reference : Forex sensitivity USD ： ± 284 M of JPY annual sales impact per 1 yen change EURO ： ± 103 M of JPY annual sales impact per 1 yen change - Against the EURO （ JPY ） 180.00 170.00 +10.00 M of JPY Consolidated Financial Forecast for FY2026 (Revised on Aug. 7) © 2026 NAKANISHI INC. ＊ 2 ＊ 1 EBITDA = Operating profit + Depreciation + Amortization ＊ 2 EPS is presented without reflecting the stock split announced on August 7. EPS after the stock split is expected to be JPY 81 .55. 17
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14,000 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000 24,000 FY2026 Previous Forecast FY2026 Revised Forecast 90,185 94,480 +2,490 Dental +4.7 % +314 Surgical +3.8 % Industrial +10.2 % +747 +742 DCI +3.3 % +4,294 +4.8% Actual FY2025 A Previous Forecast (as of Mar. 5) FY2026 B Revised Forecast (as of Aug. 7) FY2026 C Change C/B - 1 Dental 48,197 52,441 54,932 +4.7% DCI 20,538 22,270 23,012 +3.3% Surgical 5,537 8,173 8,487 +3.8% Industrial 6,906 7,301 8,048 +10.2% Total 81,179 90,185 94,480 +4.8% Change in Net Sales by Business Segment (Revised on Aug. 7) Forex impact (YoY ) +2,381M of JPY (+2.9%) M&A effect (Surgical) (YoY ) +1,895M of JPY (+2.3%) M of JPY © 2026 NAKANISHI INC. 18
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2,200 4,200 6,200 8,200 10,200 12,200 14,200 FY2025 EBITDA Adjusted EBITDA FY2026 EBITDA 19 © 2026 NAKANISHI INC. Average exchange rate FY2025 Actual FY2026 2H Forecast USD JPY 150.43 → JPY 155.00 EUR JPY 169.18 → JPY 180.00 Forex impact +1,663 +4,053 +655 - 671 Increase in demand Cost rate factors Increase in selling expenses - 1,013 Increase in personnel expenses Increase in other expenses - 1,153 22,469 +4,441 +22.3% 19,899 24,340 M of JPY Change in EBITDA (Revised on Aug. 7) +906 M&A effect
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© 2026 NAKANISHI INC. Shareholder Return Stock Split and Expansion of the Limit for Repurchase of Own Shares 20
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We aim to enhance the liquidity of our shares and expand our investor base by reducing the investment amount per unit. Record Date: September 30, 2026 (Wednesday) Metho d : Common share 1 share 2 shares Total number of shares outstanding : 92,218,200 shares 184,436,400 shares The total number of shares authorized to be issued: 375,000,000 shares 737,000,000 shares Effective date : October 1, 2026 (Thursday) © 2026 NAKANISHI INC. Stock Split 21
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In light of the upward revision to the FY2026 forecast (August 7), we expand the limit for the repurchase of own shares and aim for a total shareholder return ratio of 70%. Before (Board of Directors meeting resolution on February 12, 2026) After (Board of Directors meeting resolution on August 7, 2026 ) Class of shares to be repurchased Common shares Common shares Total number of shares to be repurchased Max. 1.5 million shares (1.81% of total number of shares outstanding (excluding treasury shares) ) Max. 2.0 million shares (2.41% of total number of shares outstanding (excluding treasury shares) ) Total amount of repurchase costs Max. 2,500 M of JPY Max. 4,000 M of JPY Period of repurchase From February 13, 2026 to December 30, 2026 From February 13, 2026 to December 30, 2026 + 0.5 million shares © 2026 NAKANISHI INC. Expansion of the Limit for Repurchase of Own Shares +1,500 M of JPY 22
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23 Shareholder Return Policy and Transition ❚ Shareholder return policy © 2026 NAKANISHI INC. ❚ Transition of shareholder return 0 10 20 30 40 50 60 70 0 10 20 30 40 50 60 70 80 90 2021 actual 2022 actual 2023 actual 2024 actual 2025 actual 2026 forecast Annual dividend per share (JPY) Interim 17.00 Year - end 20.00 Interim 22.00 Year - end 24.00 Interim 24.00 Year - end 26.00 Interim 26.00 Year - end 26.00 Interim 26.00 Year - end 28.00 Interim 30.00 Year - end 30.00 Dividend payout ratio （％） 31.7 31.6 37.0 ＊ 1 37.6 ＊ 2 37.0 ＊３ - Total payout ratio （％） 43.5 51.5 63.1 ＊ 1 54.7 ＊ 2 61.1 ＊３ - 4.49 2.92 3.19 1.19 3.92 2.49 4.25 2.99 Total amount of treasury stock acquisition (B of JPY) Total annual dividend (B of JPY) Total payout ratio 4.39 1.99 ＊ 1 Calculated using adjusted net profit which excludes extraordinary income brought by DCI acquisition. ＊２ Calculated using adjusted net profit which excludes profit decrease brought by impairment loss of Jaeger. ＊ 3 Calculated using adjusted net profit which excludes profit decrease brought by impairment loss of DCI. ＊ 4 Assuming the 2 - for - 1 stock split announced on August 7 is effected, the year - end dividend will be JPY15 per share. 43.5% 51.5% 63.1% ＊ 1 61.1% ＊ 3 54.7% ＊ 2 We regard shareholder returns as one of our key management priorities and strive to maintain a balanced approach by enhancing our business foundation, making appropriate and proactive investments in growth areas, and delivering returns to shareholders. Under our Mid Term Management Plan “NV2030” , we will continue to use the total payout ratio (treasury stock acquisition + dividends) as a key indicator of shareholder returns. We have also adopted a “progressive dividend policy” and raised our target to a “total payout ratio of 70%” . ＊ 4
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Overviews of Each Segment and Future Initiatives President & Group CEO Eiichi Nakanishi 24 © 2026 NAKANISHI INC.
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Europe 12.6 YoY +23.2% Dental Surgical Industrial Japan 5.6 YoY +25.2% Dental Surgical Industrial North America 19.0 YoY +25.7% DCI Surgical Industrial Asia 4.6 YoY +9.8% Dental Surgical Industrial Others 5.1 YoY +4.2% Dental Surgical Industrial S.America, Middle East, Russia, Australia, etc. Dental © 2026 NAKANISHI INC. Global Trend of Net Sales Sales grew significantly in developed markets, including Japan, North America, and Europe. Sales in emerging markets grew moderately, despite regional variations. (Sales trends on a local currency basis) (Sales trends on a local currency basis) (Sales trends on a local currency basis) (Sales trends on a local currency basis) B of JPY 25
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Europe NSK Europe Germany 2003 Dental ・ Surgical Eastern Europe 2026 Dental NSK France France 2005 Dental NSK United Kingdom UK 2007 Dental ・ Surgical NSK Dental Spain Spain 2008 Dental ・ Surgical NSK Dental Italy Italy 2013 Dental NSK Dental Nordic Sweden 2019 Dental Nakanishi Jaeger Germany 2022 Industrial NSK Schweiz Switzerland 2026 Dental North America NSK America USA (IL) 1984 Dental ・ Surgical Industrial DCI International USA （ OR ） 2023 DCI Acra Cut / Intech USA （ MA ） 2026 Surgical Asia NSK Shanghai China (Shanghai) 2005 Dental ・ Surgical NSK Asia Thailand 2009 Dental NSK Dental Korea Korea 2014 Dental NSK Dental Manufacturing China (Sichuan) 2023 Dental ・ Surgical REFINE Medical China (Guilin) 2023 Dental Others （ S.America , Middle East, Russia, Australia, etc.) NSK Middle East U.A.E. 2000 Dental ・ Surgical NSK RUS Russia 2007 Dental NSK Oceania （ AU ） Australia 2007 Dental NSK Oceania （ NZ ） New Zealand 2007 Dental NSK America Latina Brazil 2013 Dental ・ Surgical NSK Turkey Turkey 2025 Dental Reinforce Relocate Major headcount expansion Acquisition Global Network Expansion Establishing and Reinforcing Overseas Bases for Further Business Growth Establish Establish Reinforce Reinforce Reinforce Reinforce Reinforce Establish © 2026 NAKANISHI INC. 26
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Measures for 2 nd half Overview of 1 st half Actual Sales (YoY) (Local currency) Measures for 2 nd half Overview of 1 st half The distribution network reform proved successful, driving sales growth across a broad range of products, including handpieces and preventative dentistry products. Sales increased significantly by 32% YoY. OEM business achieved double - digit sales growth, driven by growth in existing products and contributions from new products. The new distribution network is off to a smooth start. Continue to expand sales of handpieces and preventative dentistry products and strengthen relationships with dealers. Continue strengthening relationships with OEM business partners. Expand sales of main products such as handpieces, implant motors, and preventative dentistry products. Aim to capture additional business opportunities by leveraging the newly established overseas locations. Sales of the new preventative dentistry product launched in 2025 remained strong, contributing to sales growth. NSK - brand products continued to be chosen by customers, driving sales growth in nearly all major regions. Dental Business Outline 1/3 Japan Europe Sales forecast (YoY) (Local currency) Actual Sales (YoY) (Local currency) Sales forecast (YoY) (Local currency) Apr. 2026 Kinki Dental Show (Osaka) Jun. 2026 Expodental Rimini 2026 (Italy) © 2026 NAKANISHI INC. 27
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Measures for 2 nd half Despite a flat North American market, sales achieved double - digit growth as the NSK brand expanded its market share. The ratio of bundled sales of NSK products by DCI increased, boosting handpiece sales. Major OEM sales decreased. Focus on expanding sales of main products such as handpieces and bundled sales with DCI. Strengthen approaches to DSOs and dental universities. Promote the expansion of the OEM business. China: Sales remained sluggish, with no clear signs of a recovery in demand. Korea: Sales recovered despite weak demand. Asia: Sales recovered by winning bids. Steadily secure public hospital bidding contracts to maintain sales. With signs of demand recovery emerging in Asia, focus on expanding sales of NSK - brand and REFINE products. Measures for 2 nd half Overview of 1 st half Dental Business Outline 2/3 North America Asia Overview of 1 st half Mar. 2026 Dental South China (Guangzhou, China) May 2026 CDA2026 (California) Actual Sales (YoY) (Local currency) Actual Sales (YoY) (Local currency) Sales forecast (YoY) (Local currency) Sales forecast (YoY) (Local currency) © 2026 NAKANISHI INC. 28
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Measures for 2 nd half Overview of 1 st half Middle East Russia Australia Despite the ongoing impact of regional conflicts, demand gradually recovered from Q2. Large - scale project wins also contributed, resulting in double - digit sales growth. Although demand remained resilient, sales decreased due to the loss of a major deal. Amid weakening demand, sales in Russia were in line with the previous FY, while sales to CIS countries were sluggish, resulting in an overall sales decline. Although demand remained weak, sales remained flat, supported by sales promotion measures for dealers and winning government bidding contracts. Sales increased due to the impact of yen depreciation. Although uncertainty is expected to continue, stimulate demand by strengthening efforts to secure bidding contracts and highlighting after - sales service. While responding appropriately to price competition, enhance market presence and demonstrate the added value through collaboration with KOLs. Strengthen the sales network in the CIS countries, and expand sales of main products, including REFINE. Expand sales of main products such as handpieces. Focus on preventive dentistry products and mobile dental care devices with strong market needs. Dental Business Outline 3/3 Feb. 2026 CIOSP2026 (Brazil) May 2026 Oral Surgery Product Seminar (New Zealand) Actual Sales (YoY) (Local currency) Sales forecast (YoY) (Local currency) © 2026 NAKANISHI INC. South America 29
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DCI Business Outline Business topics NSK x DCI Bundled Sales The primary objective of the DCI acquisition is to expand NAKANISHI’s share of the U.S. dental handpiece market through bundled sales of NSK x DCI products. The bundled sales ratio continued to increase steadily, reaching 36% in the first half of FY2026, a record - high level. Acquisition of New Headquarters and Factory In June 2026, DCI acquired land and buildings in Wilsonville, Oregon. The expansive site, covering approximately 97,000 square meters, will be developed into a business base supporting sustainable growth, housing its headquarters and factory, as well as a warehouse and showroom. Overview of 1 st half Measures for 2 nd half Market trends Business overview ・ Capturing demand ahead of the price increase, DCI’s sales volume increased by 9% YoY. ・ Net sales increased significantly by 20% YoY, driven by rush demand and higher unit prices. ・ The total number of dental chairs sold in the market increased by 2% YoY. Market forecast Key initiatives ・ Strengthen approaches to private practices, dental universities, and government institutions. ・ Further increase the bundled sales ratio of NSK x DCI products. ・ Demand is expected to remain resilient, but market competition will intensify. Amid intensifying market competition, demonstrate added value through high - synergy bundled sales of NSK x DCI products. © 2026 NAKANISHI INC. 30
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Surgical Business Outline Measures for 2 nd half Overview of 1 st half Japan Europe North America Asia Business opportunities created by competitors withdrawing were steadily captured, while sales of disposables also grew, resulting in significant sales growth. The establishment of sales structures centered on local subsidiaries and the development of new distributors proved successful, resulting in significant sales growth. AcraCut sales were in line with the plan, while sales of NSK products were strong, resulting in significant sales growth. Market share expanded steadily. In the key Chinese market, bidding contract wins and sales of disposables increased. In Korea, business opportunities created by competitors withdrawing were also captured, driving sales growth. Strengthen sales capabilities and establish a sales structure for new products. Capture demand through participation in academic conferences, seminars, and other events. Execute new market development through channel expansion. Strengthen customer contact points and expand product sales through new product trials. Pursue new project wins through the launch of new products that meet KOL needs, while strengthening the sales structure. While continuing to support the key market of China, further expand sales by strengthening the sales structure in Korea and Southeast Asian countries. Actual Sales (YoY) (Local currency) Sales forecast (YoY) (Local currency) © 2026 NAKANISHI INC. 31 Apr. 2026 JSSR 2026 (Fukuoka)
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Measures for 2 nd half Overview of 1 st half Japan Europe North America Asia Proposal - based sales activities, including collaboration with major tool manufacturers and expanded sales of speed - increasing spindles, proved successful, resulting in double - digit sales growth. The expansion of the dealer network drove sales growth. A recovery in sales of Jaeger products also contributed, resulting in significant sales growth. Strong demand drove the acquisition of automotive - and medical device - related projects, resulting in significant sales growth. In addition to winning spindle projects for automatic lathes in the Chinese market, demand was steadily captured, driving sales growth. Further deepen collaboration with tool manufacturers and strengthen proposal - based sales activities for automation and labor - saving. Leverage the dealer network to capture inquiries and execute the restructuring plan for Jaeger. Demand remains resilient. Stimulate further demand in the automotive and medical device sectors. In anticipation of the completion of large projects in China, continue to approach key customers in each region. Industrial Business Outline Jun. 2026 ROBOT TECHNOLOGY JAPAN 2026 (Aichi) 画像ファイル取り寄せ中 Angle Spindle Featuring the World’s Smallest Head (Chamfering and deburring inside pipes with an inner diameter of φ18 mm) *According to NAKANISHI research. New Angle Spindle with an Ultra - Compact Head RAM - 3014 Actual Sales (YoY) (Local currency) Sales forecast (YoY) (Local currency) © 2026 NAKANISHI INC. 32