November 4, 2020

Osaki Electric Co., Ltd.
Tokyo Stock Exchange 1st Section
Securities code: 6644

FY2020 First Half
Summary of Consolidated Financial Results(Six Months ended September 2020)⚫ Consolidated sales were down by 18.0% year on year to ¥35.7 billion. Operating income⚫
⚫

declined by 62.2% to ¥0.8 billion. Net loss attributable to owners of parent were ¥0.2
billion in contrast to ¥0.8 billion in profit in the previous first half.
In Japan, sales and profit declined mainly due to the expansion of COVID-19 virus
infection in the midst of the peak out period in demand for smart meters, which led to thepostponement of orders from customers.
In the overseas, installation of smart meters was stagnant due to lockdowns
associated with the spread of COVID-19 virus. Shipments to Oceania and Asia
declined, and the UK project, which had been expected to expand, remained at thesame level as in the same period in the previous fiscal year. Orders for Iraq (KurdistanRegional Government) and Cambodia projects, which recorded a temporary increase inorders in the same period of the previous fiscal year, declined year on year. As a result,sales and profits declined.

1. Consolidated Financial Results(Millions of yen)
YoY Change

FY2019 1H

FY2020 1H

43,58024,152
19,050932(555)
9,947

35,73422,30812,916
903
(393)
8,044

22.8%

22.5%

7,914

7,277

18.2%

20.4%

2,033

767

Ratio to sales

4.7%

2.1%

Smart meters & solutions in Japan

1,327
561
135
8
1,946
845
17.28

948(224)430744(202)(4.14)Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
OthersAdjustment

Gross profitRatio to sales

SG & A expenses
Ratio to sales

Operating income

Smart meters & solutions overseas
OthersAdjustment

Ordinary income
Profit attributable to owners of parent

Net income per share（yen）

Amount%FY2020Full-year
Forecasts（*）(1,843)(6,134)(29)
162(1,903)(18.0)%(7.6)%(32.2)%(3.2)%－(19.1)%(0.3)pt

21.4%

(637)

(8.1)%

15,600＋2.2pt19.5%(1,265)(62.2)%

1,500(2.6)pt

1.9%(28.6)%－(67.8)%(89.6)%(61.7)%
－－

1,300
0200－
1,600
100
2.04(7,846)

(379)
(786)
(91)
(7)
(1,201)(1,047)(21.42)80,00048,20030,0001,800－
17,100Estimated impact from the COVID-19 epidemic（Included in the table above of Fiscal 2020 Forecasts）(5,600)(1,200)(4,400)
(800)
(100)
(700)

Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas

Operating income
Smart meters & solutions in Japan(12,000)(2,000)(10,000)(2,700)(700)(2,000)Smart meters & solutions overseas* The Full-year Forecasts are based on the initial plan announced on May 27, 2020 because of uncertainty in the market
environment due to the lack of a convergence outlook for COVID-19 virus.

12. Consolidated Sales by Region (Excluding intercompany sales)(Millions of yen)

FY2020Full-yearForecasts（*2）

YoY Change

FY2019 1H

FY2020 1H

24,915
18,665
5,021
4,454
4,706

23,13012,603
4,116
4,181
2,164

(1,784)(6,061)(7.2)%(32.5)%

(905)
(273)
(2,542)(18.0)%(6.1)%(54.0)%

50,00030,0008,500
10,500
6,500

4,482

2,141(2,340)(52.2)%

4,500

43,58035,734(7,846)(18.0)%

80,000¥110.05/USD¥108.23/USD

JapanOverseas
Oceania
EuropeAsia
Middle Eastand others

Total
Average exchange rate

Amount%*1 The figures above are calculated based on customer locations and may not match the figures on Table 1.
Consolidated Financial Results.
*2 The Full-year Forecasts are based on the initial plan announced on May 27, 2020 because of uncertainty in themarket environment due to the lack of a convergence outlook for COVID-19 virus.

3. Sales by product and service (Excluding intercompany sales)（1）Smart meters & solutions in Japan(Millions of yen)
YoY Change

MetersMonitor Control
Switchgears
VCTs
Others(including adjustments)

Total

FY2019 1H

FY2020 1H

12,671
1,273
2,957
2,291

11,0371,837
3,097
2,108(1,634)
564
140(183)(12.9)%+44.3%+4.7%(8.0)%

4,946

4,216(730)(14.8)%

24,14022,296(1,844)(7.6)%

Amount%*Referential figures based on managerial accounting（2）Smart meters & solutions overseas(Millions of yen)
YoY Change

MetersMonitor Control
Total

FY2019 1H

FY2020 1H

12,774
5,818
18,5938,496
4,09112,587*Referential figures based on managerial accounting

2Amount(4,278)(1,727)(6,006)%(33.5)%(29.7)%(32.3)%

4. R&D expenditures, Depreciation, Capital expenditures(Millions of yen)
YoY Change

FY2019 1H

FY2020 1H

1,534
1,356
1,125

1,496
1,330
771

R&D expenditures
Depreciation
Capital expenditures

Amount

(38)
(26)
(354)

%

FY2020Full-yearForecasts（※）(2.5)%(1.9)%(31.5)%

3,200
2,700
2,800

* The Full-year Forecasts are based on the initial plan announced on May 27, 2020 because of uncertainty
in the market environment due to the lack of a convergence outlook for COVID-19 virus.

5.

FY2020 Consolidated Forecast

The consolidated Full Year forecasts are not changed from the plan announced on May 27,
2020 because of uncertainty in the market environment due to the lack of prospects forconvergence of COVID-19 virus.
(Millions of yen)

Full-year
FY2019FY2020Results

Forecasts

YoY

Net sales

90,06980,000(10,069)

Operating income

3,691

1,500(2,191)

Ordinary income

3,544

1,600(1,944)

Profit attributable toowners of parent

1,197100(1,097)⚫ Forward-looking statements made in this material is based on management’s estimates, assumptions and projections

at the time of publication and do not represent a commitment that they will be achieved. A number of factors could
cause actual results to differ materially from expectations.
⚫ All amounts are in millions of yen rounded down unless otherwise stated.

Financial data (Excel/PDF) are available on our website (https://www.osaki.co.jp/en/ir/finance/financialdata.html).

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