Interim report
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Flash Report for 2nd quarter Ended June 30 , 2026 ( on a consolidated basis ) [ Japan GAAP ] Name : Nakanishi Inc. Code Number : 7716 Stock listing : Tokyo Stock Exchange : Standard Market 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 submit Securities Report : Aug 7 , 2026 Scheduled date to begin dividend payments : Sep 16 , 2026 Supplementary materials to quarterly financial statements : Applicable Quarterly earnings results briefing : Applicable ( for institutional investors and securities analysts ) Aug 7 , 2026 ( All amounts are rounded down to the nearest million yen . ) 1. Consolidated financial results for 2nd quarter period ( January 1 to June 30 , 2026 ) ( 1 ) Operating Results 2nd quarter ended June 30 , 2026 2nd quarter ended June 30 , 2025 2nd quarter ended June 30 , 2026 2nd quarter ended June 30 , 2025 Notes : 1 . Millions of yen Net sales 47,234 EBITDA Operating income 20.5 % 39,189 1.6 % 12,769 10,390 22.9 % 10,012 32.0 % -6.0 % 7,587 -8.4 % Millions of yen Earnings Ordinary income Income attributable to owners of parent Diluted per share EPS ( yen ) 11,577 67.1 % 8,144 132.0 % ( yen ) 98.07 97.72 6,930 -34.1 % 3,510 -50.0 % 41.84 41.70 Percentage figures for net sales , operating income , ordinary income and net income represent year - on - year comparisons . 2 . Comprehensive income for reporting period : 2nd quarter ended June 30 , 2026 2nd quarter ended June 30 , 2025 10,192 million ( 3248.6 % ) 304 million ( -98.0 % ) 3 . EBITDA ( Operating income + Depreciation + Goodwill amortization ) ( 2 ) Financial Position Millions of yen Total assets Net assets Equity ratio As of June 30 , 2026 174,551 122,009 69.6 % As of December 31 , 2025 160,155 114,074 71.0 % Note : Owners ' equity As of June 30 , 2026 121,564 million As of December 31 , 2025 113,678 million - 1 -
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－ 2 － 2. 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 ̶ 30.00 Year ending December 31, 2026 (forecast) ̶ 15.00 ̶ Notes: 1. Revisions to dividend payment forecasts during the pe riod: Applicable 2. The Company resolved at the Board of Directors meeting held on August 7, 2026 to implement a two-for-one stock split of its common shares, with September 30, 2026 as the record date and October 1, 2026 as the effective date. The forecast year-end dividend per share for the fiscal year ending December 31, 2026 is presented on a post-stock-split basis, and therefore the total annual dividend per share is shown as “–”. Before giving effect to the stock split, the forecast annual dividend per share would be ¥60.00. For details, please refer to the announcement released today August 7, 2026, “Notice Regarding Stock Split, Partial Amendment to the Articles of Incorporation, and Revision to Dividend Forecast.” 3. 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) F ull y ear 94, 480 16. 4 18, 649 32. 4 19, 062 12. 6 13, 544 ̶ 81. 55 Notes: 1. Percentage figures rep resent year-on-year comparisons. 2. Revisions to performance forecasts during the period: Appli cable As described in “2. Dividends” above, following the resolutio n to implement the stock split, earnings per share for the fiscal year ending December 31, 2026 is presented on a post-stock- split basis. Before giving effect to the stock split, the forecast EPS would be ¥163.10. For details, please refer to the announcement released today August 7, 2026, “Notice Regarding Difference Between Financial Forecasts and Actual Results for the First Half of the Fiscal Year Ending December 31, 2026 and Revisions to Full-Year Financial Forecasts (Upward Revision).”
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－ 3 － 4. Others (1) Changes in the scope of consolidation during the period Inclusion: 2 companies (Acra Cut, Inc. and Intech, Inc.) E x c l u s i o n : N o n e Note: For details, please refer to “Changes in the scope of consolidation during the period” on page 14 of the Attachments (2) Application of special accounting methods in the preparation of the Consolidated Interim financial statements: Not applicable (3) Changes in accounting principles, accounting estimates, and restatement 1. Changes in accounting principles due to revision of account ing standards, etc.: Not applicable 2. Changes in accounting principles other than 1: Not applicab le 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 June 30, 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 June 30, 2026: 9, 166,718 shares As of December 31, 2025: 10, 373,418 shares Average number of shares during the period 2nd quarter ended June 30, 2026: 83,046,782 shares 2nd quarter ended June 30, 2025: 83,908,021 shares
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－ 4 － Table of Contents 1. Qualitative Information on Interim Financial Results 5 (1) Explanation of Results of Operations 5 (2) Explanation of Financial Position 6 (3) Explanation of Cash flows 6 (4) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information 7 2. Consolidated Interim Financial Statements and Principal Notes 8 (1) Consolidated Interim Balance Sheets 8 (2) Consolidated Interim Statements of Income and Comprehensive Income 10 (Consolidated Interim Statements of Income) 10 (Consolidated Interim Statements of Comprehensive Income) 11 (3) Consolidated Interim Statements of Cash flows 12 (4) Notes to Consolidated Interim Financial Statements 14 (Notes to Going Concern Assumption) 14 (Notes to Significant Changes in the Amount of Shareholdersʼ Equity) 14 (Changes in the scope of consolidation during the period) 14 (Segment Information） 15
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－ 5 － 1. Qualitative Information on Interim Financial Results (1) Explanation of Results of Operations During the six months of this fiscal year, the global economy continued to demonstrate resilient growth, particularly in the United States. However, heightened uncertainty regarding trade policies and increasing geopolitical risks in the Middle East led businesses and consumers to adopt a more cautious outlook. Particularly, rising energy prices and volatility in financial markets associated with escalating tensions in the Middle East contributed to persistent uncertainty over the global economic outlook. In Europe, although the economy showed signs of a moderate recovery supported by expansionary fiscal policies, mainly in Germany, increases in energy costs and heightened geopolitical risks weighed on economic activity, resulting in a lack of strong growth momentum. Meanwhile, the Japanese economy remained relatively firm, supported by solid corporate earnings and capital investment, as well as improvements in employment and income conditions. However, rising prices, particularly for food and energy, continued to place pressure on household budgets. As a result, although private consumption showed signs of improvement, its recovery remained gradual. Under these business conditions, all business segments, namely Dental segment, DCI segment, Surgical segment, and Industrial segment, achieved double-digit revenue growth. Consequently, net sales increased by 20.5% year on year and, excluding the impact of foreign exchange fluctuations, increased by 12.3%. On the profit side, EBITDA, operating income, ordinary profit, and profit attributable to owners of parent all increased compared with the same period of the previous year. As a result, consolidated net sales were ¥47,234,964 thousand (+20.5% year on year), EBITDA was ¥12,769,688 thousand (+22.9%), operating profit was ¥10,012,512 thousand (+32.0%), ordinary profit was ¥11,577,319 thousand (+67.1%), and profit attributable to owners of parent was ¥8,144,522 thousand (+132.0%). The operating results by segment were as follows. 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 second quarter of the previous consolidated fiscal year has been prepared based on the revised calculation method and is presented accordingly. （Dental segment） Net sales in Dental segment increased year on year in all regions, including Japan, North America, Europe, and Asia. Both segment EBITDA and segment operating income also increased compared with the same period of the previous year. As a result, net sales were ¥26,962,871 thousand (+14.6%), segment EBITDA was ¥10,107,097 thousand (+10.6%), and segment operating profit was ¥8,961,875 thousand (+11.9%). （DCI segment） Net sales in DCI segment increased year on year, primarily due to demand ahead of price revisions. Both segment EBITDA and segment operating income also increased compared with the same period of the previous year. As a result, net sales were ¥12,155,168 thousand (+23.6%), segment EBITDA was ¥1,469,315 thousand (+19.1%), and segment operating income was ¥674,182 thousand (+913.9%). (Surgical segment) Net sales in Surgical segment increased year on year in all regions, including Japan, North America, Europe, and Asia. Both segment EBITDA and segment operating profit also increased compared with
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－ 6 － the same period of the previous year. As a result, net sales were ¥3,909,019 thousand (+53.4%), segment EBITDA was ¥1,894,122 thousand (+45.2%), and segment operating income was ¥1,474,280 thousand (+20.4%). （Industrial segment） Net sales in Industrial segment increased year on year in Japan, North America, Europe, and Asia, excluding other regions. Both segment EBITDA and segment operating income also increased compared with the same period of the previous year. As a result, net sales were ¥4,207,904 thousand (+28.6%), segment EBITDA was ¥1,290,005 thousand (+171.9%), and segment operating income was ¥1,141,280 thousand (+273.0%). (2) Explanation of Financial Position (Assets, liabilities and net assets) Total assets as of the end of the six months of this fiscal year were ¥174,551,385 thousand, an increase of ¥14,395,921 thousand compared with the end of the previous fiscal year. This was mainly due to an increase in goodwill of ¥12,490,395 thousand. Total liabilities were ¥52,541,614 thousand, an increase of ¥6,460,592 thousand compared with the end of the previous fiscal year. This was mainly due to an increase in short-term borrowings of ¥8,345,215 thousand, despite a decrease in long-term borrowings of ¥1,994,980 thousand. Total net assets were ¥122,009,771 thousand, an increase of ¥7,935,329 thousand compared with the end of the previous fiscal year. This was mainly due to an increase in retained earnings of ¥5,819,268 thousand. (3) Explanation of Cash Flows Cash and cash equivalents (hereinafter referred to as “cash”) as the end of the six months of this fiscal year were ¥40,448,681 thousand, a decrease of ¥5,515,379 thousand from the end of the previous fiscal year. Cash flows from operating activities were ¥7,620,752 thousand compared with ¥7,578,364 thousand in the same period of the previous year. This was mainly due to the recording of profit before income taxes of ¥11,521,075 thousand, while cash outflows included income taxes paid of ¥3,845,119 thousand. Cash flows from investing activities were ¥-18,969,432 thousand compared with ¥-6,439,803 thousand in the same period of the previous year. The main outflow was ¥13,248,408 thousand for the purchase of shares of subsidiaries resulting in change in scope of consolidation. Cash flows from financing activities were ¥4,741,131 thousand compared with -¥2,559,014 thousand in the same period of the previous year. The main inflow was ¥11,000,000 thousand from short-term borrowings.
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－ 7 － (4) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information The Company hereby revises its consolidated financial forecast for the fiscal year ending December 31, 2026, which was announced on March 5, 2026, as follows. Full year The amount % Sales \94,480 million 16.4 EBITDA \24,340 million 22.3 Operating income \18,649 million 32.4 Ordinary profit \19,062 million 12.6 Net income attributable to owners of parent \13,544 million ̶ (Note) Percentage figures represent year-on-year comparisons. For details, please refer to the announcement released today August 7, 2026, “Notice Regarding Difference Between Financial Forecasts and Actual Results for the First Half of the Fiscal Year Ending December 31, 2026 and Revisions to Full-Year Financial Forecasts (Upward Revision).”
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－ 8 － 2. Consolidated Interim Financial Statements and Principal Notes (1) Consolidated Interim Balance Sheets (Thousands of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 61,317,878 56,375,905 Notes receivable - trade 37,674 21,471 Accounts receivable - trade 10,045,924 11,615,330 Securities 1,480,475 522,367 Merchandise and finished goods 13,656,202 14,264,393 Work in process 5,324,165 5,720,647 Raw materials and supplies 6,585,292 7,203,966 Other 4,078,374 3,575,374 Allowance for doubtful accounts -116,839 -91,772 Total current assets 102,409,148 99,207,684 Non-current assets Property, plant and equipment Buildings and structures 26,795,751 29,154,798 Machinery, equipment and vehicles 12,216,007 12,546,575 Tools, furniture and fixtures 8,437,524 9,978,806 Land 2,886,477 5,790,029 Construction in progress 1,186,659 1,454,511 Accumulated depreciation -24,660,076 -27,134,469 Total property, plant and equipment 26,862,343 31,790,251 Intangible assets Software 641,678 488,172 Software in progress 670,256 807,023 Goodwill 5,391,037 17,881,433 Customer-related intangible assets 7,771,482 7,736,708 Other 6,802,012 6,721,003 Total intangible assets 21,276,467 33,634,341 Investments and other assets Investment securities 4,959,641 5,037,021 Shares of subsidiaries and associates 287,984 417,525 Insurance funds 680,283 681,604 Retirement benefit asset 380,075 405,331 Deferred tax assets 898,383 889,463 Other 2,461,844 2,549,828 Allowance for doubtful accounts -60,707 -61,666 Total investments and other assets 9,607,504 9,919,108 Total non-current assets 57,746,315 75,343,701 Total assets 160,155,463 174,551,385
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－ 9 － (Thousands of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Accounts payable - trade 3,324,495 3,642,842 Short-term borrowings 7,774,134 16,119,350 Current portion of long-term borrowings 7,814,001 8,571,687 Income taxes payable 3,382,793 2,862,814 Provision for bonuses 611,216 568,749 Other provisions 56,775 － Other 6,939,103 6,595,620 Total current liabilities 29,902,520 38,361,064 Non-current liabilities Long-term borrowings 11,184,650 9,189,669 Retirement benefit liability 201,116 210,047 Deferred tax liabilities 4,279,811 4,281,026 Other 512,924 499,806 Total non-current liabilities 16,178,502 14,180,549 Total liabilities 46,081,022 52,541,614 Net assets Shareholders' equity Share capital 867,948 867,948 Capital surplus 2,586,421 866,007 Retained earnings 110,046,166 115,865,434 Treasury shares -14,946,246 -13,207,606 Total shareholders' equity 98,554,289 104,391,784 Accumulated other comprehensive income Valuation difference on available-for- sale securities 1,910,302 2,300,610 Foreign currency translation adjustment 13,213,865 14,871,807 Total accumulated other comprehensive income 15,124,168 17,172,418 Share acquisition rights 395,983 445,569 Total net assets 114,074,441 122,009,771 Total liabilities and net assets 160,155,463 174,551,385
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－ 10 － (2) Consolidated Interim Statements of Income and Comprehensive Income (Consolidated Interim Statements of Income) (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 39,189,728 47,234,964 Cost of sales 16,085,555 19,810,058 Gross profit 23,104,173 27,424,905 Selling, general and administrative expenses 15,516,951 17,412,393 Operating profit 7,587,221 10,012,512 Non-operating income Interest income 410,079 484,594 Dividend income 45,985 61,468 Subsidy income 10,000 10,000 Foreign exchange gains － 1,130,753 Miscellaneous income 137,437 190,356 Total non-operating income 603,502 1,877,173 Non-operating expenses Interest expenses 75,828 189,964 Commission expenses 2,097 － Foreign exchange losses 1,168,669 － Miscellaneous losses 13,805 122,401 Total non-operating expenses 1,260,400 312,366 Ordinary profit 6,930,322 11,577,319 Extraordinary income Gain on sale of non-current assets 1,061 0 Reversal of provision for loss on litigation 164,920 － Total extraordinary income 165,981 0 Extraordinary losses Loss on sale of non-current assets － 28 Loss on retirement of non-current assets 22,785 56,215 Impairment losses 8,053 － Expense on scrapping fixed assets 17,452 － Total extraordinary losses 48,291 56,244 Profit before income taxes 7,048,013 11,521,075 Income taxes - current 2,217,119 3,709,333 Income taxes for prior periods 1,163,054 － Income taxes - deferred 157,472 -332,780 Total income taxes 3,537,647 3,376,553 Profit 3,510,366 8,144,522 Profit attributable to owners of parent 3,510,366 8,144,522
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－ 11 － (Consolidated Interim Statements of Comprehensive Income) (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 3,510,366 8,144,522 Other comprehensive income Valuation difference on available-for-sale securities -406,472 390,307 Foreign currency translation adjustment -2,799,505 1,657,942 Total other comprehensive income -3,205,978 2,048,250 Comprehensive income 304,387 10,192,772 Comprehensive income attributable to Comprehensive income attributable to owners of parent 304,387 10,192,772
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－ 12 － (3) Consolidated Interim Statements of Cash Flows (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 7,048,013 11,521,075 Depreciation 2,078,110 2,110,631 Amortization of goodwill 725,031 646,544 Impairment losses 8,053 － Expense on scrapping fixed assets 17,452 － Increase (decrease) in allowance for doubtful accounts -4,295 -25,973 Increase (decrease) in provision for bonuses -46,789 -42,466 Increase (decrease) in retirement benefit liability -4,758 -17,342 Interest and dividend income -456,064 -546,063 Interest expenses 75,828 189,964 Loss on retirement of non-current assets 22,785 56,215 Loss (gain) on sale of non-current assets -1,061 28 Subsidy income -10,000 -10,000 Decrease (increase) in trade receivables -230,578 -1,023,624 Decrease (increase) in inventories -198,064 -964,026 Increase (decrease) in trade payables 269,650 -1,109 Foreign exchange losses (gains) 1,036,101 -904,819 Other, net 128,144 278,461 Subtotal 10,457,558 11,267,495 Interest and dividends received 429,977 365,775 Interest paid -80,389 -177,398 Income taxes paid -3,238,781 -3,845,119 Subsidies received 10,000 10,000 Net cash provided by (used in) operating activities 7,578,364 7,620,752
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－ 13 － (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from investing activities Purchase of property, plant and equipment -2,729,195 -6,251,889 Proceeds from sale of property, plant and equipment 1,061 － Purchase of intangible assets -456,577 -245,275 Proceeds from sale of intangible assets 5,605 7,131 Proceeds from sale and redemption of investment securities 444,715 878,555 Purchase of shares of subsidiaries resulting in change in scope of consolidation － -13,248,408 Purchase of shares of subsidiaries and associates -669,800 -120,796 Payments into time deposits -3,303,962 -817,770 Proceeds from withdrawal of time deposits 354,960 908,181 Purchase of insurance funds -48,217 -6,741 Other, net -38,393 -72,419 Net cash provided by (used in) investing activities -6,439,803 -18,969,432 Cash flows from financing activities Proceeds from short-term borrowings 2,002,800 11,000,000 Repayments of short-term borrowings -2,000,000 -2,681,884 Proceeds from long-term borrowings 3,032,980 3,010,618 Repayments of long-term borrowings -1,145,998 -4,262,151 Dividends paid -2,195,778 -2,325,452 Purchase of treasury shares -2,253,016 － Net cash provided by (used in) financing activities -2,559,014 4,741,131 Effect of exchange rate change on cash and cash equivalents -1,152,732 1,092,169 Net increase (decrease) in cash and cash equivalents -2,573,185 -5,515,379 Cash and cash equivalents at beginning of period 35,224,056 45,964,061 Cash and cash equivalents at end of period 32,650,870 40,448,681
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－ 14 － (3）Notes to Consolidated Interim Financial Statements (Notes to Going Concern Assumption) Not applicable. (Notes to Significant Changes in the Amount of Shareholdersʼ Equity) Not applicable. (Changes in the scope of consolidation during the period) (1) Significant Change in the Scope of Consolidation During the current consolidated interim accounting period, Acra Cut, Inc. and Intech, Inc. were included in the scope of consolidation following the acquisition of all the shares by NSK America Corp., a consolidated subsidiary of Nakanishi Inc., on April 1, 2026. (2) Number of Consolidated Subsidiaries after the Change 19 companies
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－ 15 － (Segment Information） 【Segment Information】 2nd quarter ended June 30, 2025 (From January 1, 2025 to June 30, 2025) (Thousands of yen) Reportable segments Reconciling items Per Consolidate d Interim financial statements Dental segment DCI segment Surgical segment Industrial segment Reportable segments S a l e s Revenues from external customers 23,533,425 9,834,925 2,548,870 3,272,506 39,189,728 － 39,189,72 8 Transactions with other segments 176,033 － － － 176,033 -176,033 － Net sales 23,709,459 9,834,925 2,548,870 3,272,506 39,365,762 - 176,033 39,189,728 Operating profit (loss) 8,006,365 66,492 1,224,626 306,070 9,603,555 -2,016,333 7,587,2 21 Notes: 1. Adjustments to segment profit chiefly comprise general administrative expenses not attributable to reportable segments. 2. Segment profit is reconciled with operating income as recor ded in the consolidated statements of income.
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－ 16 － 2nd quarter ended June 30, 2026 (From January 1, 2026 to June 30, 2026) (Thousands of yen) Reportable segments Reconciling items Per Consolidate d Interim financial statements Dental segment DCI segment Surgical segment Industrial segment Reportable segments S a l e s Revenues from external customers 26,962,871 12,155,168 3,909,019 4,207,904 47,234,964 － 47,234,9 64 Transactions with other segments 442,525 － － － 442,525 -442,525 － Net sales 27,405,397 12,155,168 3,909,019 4,207,904 47,677,490 -442,525 47,234,964 Operating profit (loss) 8,961,875 674,182 1,474,280 1,141,775 12,252,114 -2,239,601 10, 012,512 Notes: 1. Adjustments to segment profit chiefly comprise general administrative expenses not attributable to reportable segments. 2. Segment profit is reconciled with operating income as recor ded in the consolidated statements of income. 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 second quarter of the previous consolidated fiscal year has been prepared based on the revised calculation method and is presented accordingly.