February 4, 2020

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

FY2019 Third Quarter
Summary of Consolidated Financial Results(Nine Months ended December 2019)
Consolidated net sales increased by 20.6% year-on-year to ¥66.2 billion.



Operating income raised by 23.6% to ¥3.3 billion due to the increase in overseas revenue anda decline in the SG&A expenses ratio. Profit attributable to owners of parent increased by
53.2% to ¥1.5 billion.

Sales in Japan decreased due to a peak-out of smart meters demand and price decline.

Overseas sales grew significantly in all regions, including a steady increase in revenue inAustralia, an increase in shipments of communications hubs and smart meters in the United
Kingdom and the revenue contribution of the smart meter projects in Iraq (Kurdistan RegionalGovernment) and Cambodia.

1.

Consolidated Financial Results
FY18 Q3(Millions of yen)
YoY Change
Amount%

FY19 Q3

54,877

66,20011,323+20.6%

Measurement and control equipment

53,45664,796

11,340+21.2%

Others

1,527

1,538

11+0.7%

Adjustment

(106)

(135)

(28)

－14,467

15,183715+4.9%

Net Sales

Gross Profit
Ratio to sales
SG&A Expenses
Ratio to sales
Operating income

26.4%

22.9%

11,786

11,869

21.5%

17.9%

2,681

3,313(3.4)pt
83+0.7%

632+23.6%(3.5)pt

Ratio to sales

4.9%

5.0%

Measurement and control equipment

2,445

3,132

687

+28.1%

231

177(53)(23.1)%

43(1)(28.6)%

2,817

3,225

407

+14.5%

966

1,479

513

+53.2%

19.76

30.24

10.48

+53.0%

OthersAdjustment
Ordinary income
Profit attributable to owners of parents
Net income per share (yen)1+0.1pt2.

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

YoY Change
FY18 Q3

AmountRevisedFull-year Forecasts(Feb.4)%

Japan

41,34538,449(2,895)(7.0)%

51,600Overseas

13,531

27,751

14,219+105.1%

36,400Oceania

5,291

7,363

2,071

+39.1%

9,500

Europe

2,931

6,833

3,902

+133.1%

9,500

Asia

4,609

6,835

2,225

+48.3%

8,900

699

6,718

6,019

+861.1%8,500

54,877

66,20011,323+20.6%

88,000\109.61/USD\109.15/USD

Middle East, othersTotal
Foreign Exchange rates

3.

FY19 Q3\109.05/USD

Operating Income by Region(Millions of yen)

YoY Change
FY18 Q3

JapanOverseasAdjustments
Total

FY19 Q3

AmountRevisedFull-year Forecasts(Feb.4)%

4,068

2,499(1,569)(38.6)%

2,800(1,374)

813

2,188－

400(13)

114－－

2,681

3,313

632

+23.6%

3,200*Referential figures based on managerial accounting

4. Measurement and Control Equipment Segment Sales (Excluding intercompany sales)(Millions of yen)

YoY Change
FY18 Q3

FY19 Q3

Amount%RevisedFull-year Forecasts(Feb.4)30,15838,945

8,787+29.1%

50,84023,13019,369(3,761)(16.3)%

24,840Smart meters

21,41017,988(3,422)(16.0)%

23,040

Others

1,719

1,380(339)(19.7)%

1,800

7,027

19,576

12,549+178.6%26,000

Monitor Control

8,368

9,976

1,608

+19.2%

14,270Switchgears

4,132

4,960

828

+20.0%

6,980

VCTs

3,551

3,462(89)(2.5)%

4,370

Others (including adjustments)

7,226

7,433

207

+2.9%

9,840

+21.2%

86,300MetersJapan

Overseas smart meters

Total53,43664,778*Referential figures based on managerial accounting

211,342

5. R&D expenditures, Depreciation, Capital expenditures(Millions of yen)

YoY Change
FY18 Q3

FY19 Q3

AmountRevisedFull-yearForecasts (Feb.4)%

R&D expenditures

2,262

2,368

105

+4.7%

3,500

Depreciation

1,937

2,126

188

+9.7%

3,200

Capital expenditures

1,316

1,564

247

+18.8%

3,000

6. FY219 Consolidated Forecasts
OSAKI ELECTRIC has revised its full-year forecasts for the fiscal year ending March31, 2020
for the following factors:
In Japan, sales are expected to fall short of the forecasts announced on May 14 th 2019
due to a peak-out in smart meter demand, while profits are expected to reach close toits initial targets by cost reductions.
Outside of Japan, while sales are expected to reach close to its initial targets, profits areexpected to fall short of forecasts announced in May, due to loss from revaluation ofinventories including obsolete components from design changes in the UK project, andan increase in air freight costs from the factory to distributors to meet the delivery
deadlines for the UK customers among others. Loss from revaluation of inventories are
expected to be booked at the end of the fiscal year.
(Millions of yen)

Full-Year
FY2019FY2019Initial Forecasts

Revised
Forecasts

Differences

FY2018Results

YoY(February 4)

Net sales

92,00088,000(4.3)%

82,089

7.2%

Operating income

4,300

3,200(25.6)%

4,299(25.6)%

Ordinary income

3,900

3,200(17.9)%

4,293(25.5)%

Profits attributable toowners of parent

1,600

1,000(37.5)%

1,806(44.6)%

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 thatthey will be achieved. A number of factors could cause actual results to differ materially fromexpectations.
All amounts are in millions of yen rounded down unless otherwise stated.

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