Financial Results for First Half FY2022(Six months ended September 30, 2022)
December 5 th, 2022

Mitsuyasu Watanabe,
President and COO

OSAKI ELECTRIC CO., LTD.
Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved1Summary
1. FY2022 2Q Results: Sales 39.6B yen, Operating Income 0.54B yen
YoY

Japan
Increased sales and profits
Improved profits from larger sales

Initial Increased sales and profits
targets
Lower manufacturing costs

Overseas
Flat sales, lower profits
Component shortages
High material costs,
US dollar appreciation

Short sales and profits
High material costs,
US dollar appreciation

Consolidated
Sales（+3.5B）
OP（+0.07B）
Sales（+0.5B）
OP（+0.73B）

2. FY2022 Forecasts：Sales 80.0B yen, Operating Income 1.0B yen
YoYJapan
Increase in sales and profits
Profits to improve from larger sales

Overseas
Decrease in sales and profits
Component shortages,
High material and freight costs,
Largely impacted from US dollar
appreciation

Consolidated
Sales（+3.8B）
OP（-0.28B）

3. FY2023 Outlook■Overseas: Shortages of semiconductors are expected to resolve, andshipments to UK will recover. Material and freight costs remain high,but the business aims recover profits.
■Japan: Expand solutions business
Copyright
Copyright(C)(C)20222022 OSAKI ELECTRIC CO., LTD. All Rights Reserved2Agenda1. 1H FY2022 Financial Results
2. FY2022 Forecasts
3. FY2023 Outlook

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved3

１. 1H FY2022 Financial Results
1-1 Sales and Profits
1-2 Balance Sheets
1-3 Cash Flows

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved41-1-1 Sales and ProfitsYoY■Sales：Overall increase••Increased in Japan
Decreased overseas due to sales decrease for UK with component shortages,
despite stable increase in Oceania■Operating Income: Overall increase•Decreased in overseas due to high material costs but increased in Japan••

Exceeded in Japan
Short in sales and profits overseas due to component shortages and high materialcosts

Initial targets

FY2022 Forecasts■No change from the previous announcement (August 25)
Initial Forecasts（¥Mn）
FY2022Forecasts

3,475

562

80,00053573735

1,000-150

348-182

498

1,100

1,300

1,041

1,278-258920

FY2021 1H
ActualInitial Forecasts

FY2022 1H
Actual

36,08739,00039,562

Operating Income

461-200

Ordinary Income

531

Profit attributable toowners of parent-236

Net Sales

FY2022 1H

Changes fromYoY

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved51-1-2 Results by Segments（¥Mn）

FY2021 1H

FY2022 1H

Results

ActualYoY

36,08739,562

3,475

Smart meters & solutions in Japan

21,40524,276

2,871

Smart meters & solutions overseas

14,613

14,64733

Production equipment

337761

424

Real estate2772825Adjustments-546-405

140

461

535

73

Smart meters & solutions in Japan

366

1,163

796

Smart meters & solutions overseas

118-777-895

Production equipment

-162

9171

Real estate

139

1412Adjustments-0-1-1

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved

6Net Sales

Operating Income

1-2 Balance Sheets■ Decrease in Accounts Receivable: collected receivables in and out of Japan■ Increase in Inventory: increased overseas with yen depreciation■ Net Cash: 11.2B yen, Capital Adequacy Ratio: 54.2％（¥Mn）

September 30th,March 31st, 2022
2022Assets
Current Assets

91,222

84,967-6,25551,65348,221-3,432 Cash -2,398

39,56836,746-2,822

33,61026,785-6,825Current Liabilities

26,502

16,853-9,649Fixed Liabilities

7,108

9,931

+2,82357,611

58,182+571

Capital45,23646,088+852

Non-controlling

11,865

11,626-239

509

466

-43

49.6%

54.2%

4.6%

Fixed Assets
Liabilities

EquityOthers
Capital Adequacy Ratio

Factors

ChangesAccounts Receivable -4,676
Inventory+2,260Accounts payable -1,511
Borrowings -4,163

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved71-3 Cash Flows■ Operating cash flow 2.2B yen,Free cash flow 3.5B yen（¥Mn）

Income before income taxes and minority interests(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable
OthersOperating activities
Purchase of property, plant and equipment
Proceeds from sales of shares of subsidiaries
OthersInvesting activities
Increase (decrease) in long-term debts
OthersFinancing activities
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of 1H

FY20221H
1,905
4,237
-1,549-1,248-1,162
2,181-954
3,481-1,251
1,275-4,925-1,674-6,600
736
15,335
12,927

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved

8２. FY2022 Forecasts

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved92-1. FY2022 Forecasts■No change made to FY2022 (ending March 31, 2023) forecasts
from the previous announcement on August 25 th, 2022（¥Mn）

FY2022 1HActualNet SalesYoY

FY2022 2HForecasts

YoY

FY2022Forecasts

YoY

39,562

3,475

40,438341

80,0003,815Operating Income

53573465-351

1,000-277

Ordinary Income
Profit attributable toowners of parent

348

-182

752

94

1,100-89

1,041

1,278-121

301

920

1,578

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved102-2. FY2022 forecasts by segment
While full-year forecasts were unchanged, sales forecasts by segment have been revised■ YoY: Japan sales and profits to increase mainly in smart meters
Overseas decrease in profits largely due to high material costs mainly electronic components andhigh freight costs. Oceania business is well underway.
■ Initial Forecasts: Japan profits to exceed from better manufacturing efficiency and cutting SG&A expenses,
although expecting additional raise in material costs in 2H.
Overseas on the way to recovery, however, expected to fall short of initial forecasts

FY2021

FY2022Net Sales

1H
Actual
36,087

1H
Actual
39,562

Smart meters & solutions in Japan

21,405

Smart meters & solutions overseas

FY2021YoY

FY2022

FY2022

Changes
fromYoY3,475

InitialActualForecasts
Forecasts
76,18480,00080,0003,815

ー24,2762,871

46,00650,00049,0002,993-1,00014,613

14,64733

30,06829,00030,800731

1,800

Others

614

1,044

430

1,246

2,100

1,300

53-800Adjustments

-546

-405

140

-1,137-1,100-1,10037ーOperating Income

461

535

73

1,277

1,000

1,000-277ー

Smart meters & solutions in Japan

366

1,163

796

1,225

1,500

1,800

574

300

Smart meters & solutions overseas

118

-777

-895

58

-700

-1,100-1,158-400

Others

-23

150

173

-11

200

300

311

100

Adjustments-0-1-14ーー-4ー

InitialForecasts＊Announced on November 8th
Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved

113. FY2023 Outlook
3-1 Japanese Business

3-2 Overseas Business
3-3 Strengthen Business Portfolio Management

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved123-1 Japanese Business
Smart meter business(B yen)Sales

40(B yen)

Sales

10.5

11.5

203530

Solution business29.43232

1816
1425

12201015810.561045200

FY2021Actual

FY2022
InitialForecast

FY2022Forecast■YoY: increase by recovery■Initial Forecasts: in line
■FY2023 Outlook:
Establish strong development andmanufacturing framework for the nextgeneration smart meters

FY2021

ActualFY2022

InitialForecast

FY2022Forecast■YoY: smart locks increased, solutions
decreased from component shortages■Initial Forecasts: solutions fell short due tocomponent shortages■FY2023 Outlook: Expand energy solutions
Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved133-2-1

Overseas Business (Oceania, Europe)

Oceania(B yen)

Europe (mainly UK)
Sales(B yen)

2020181816141210.6121416141210108866442200

FY2021

ActualFY2022

InitialForecast

Sales

FY2022

Forecast■YoY: steady shipments■Initial Forecasts: exceeded expectations■FY2023 Outlook: Stable but need to control
component and freight costs

11.3

FY2021

Actual10

FY2022

InitialForecast

9.5

FY2022

Forecast■YoY: decrease from electronic component
shortages■Initial Forecasts: short from electronic
component shortages■FY2023 Outlook: electronic component
shortages to resolve
Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved143-2-2 Overseas Business (Developing Countries)
Asia

Middle East and others(B yen)Sales(B yen)10594.58473.5664.254.932.54231.5

2110.500

FY2021

ActualFY2022

InitialForecast

FY2022

Forecast

Sales

1.8

1.1

FY2021

ActualFY2022
InitialForecast

1.4

FY2022

Forecast■YoY: decrease from sale of building control and ■YoY: impacted by component shortages■Initial Forecasts: delay in some projects
maintenance business■FY2023 Outlook: expecting market to grow,■Initial Forecasts: recover from low demandfocus on profitability
during covid-19 restrictions■FY2023 Outlook: selecting focused business toimprove profitability
Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved15

3-3Strengthen Business Portfolio management• Focus management resources to the core businesses including
smart meters & solutions in and out of Japan.
• Sold production equipment in non-core businesses

OverseasJapan▲Oceania▲Smart meter business• Main business• Stable profits▲Solution business• Focus business• Provide low energy/decarbonizationsolutions• Contribute to better
profitability▲Switchgear business• Respond to stable demand• Maintain revenue and profit
contribution

CoreBusinesses
Smart meters& Solutions• Sale of smart meter solutions• Stable profit growth▲Europe• Better profitability in UK▲Asia, Middle East and others• Selective businesses• Improve profitability

Non-coreBusinesses
Production equipment(sold Sept., 2022)
Real Estate

Sold building
maintenancesystems business(Mar., 2022)

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved16

Global Energy Solution Leader
Providing tomorrow’s energy solution for a better societyAppendix

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved18

1H FY2022 Operating Profit Change (YoY)
Smart meters & solutions in Japan+0.6(¥Bn)
1.15+0.20.35

FY21 1H OP

Sales increase

GP marginincrease

SG&Astay flat

FY22 1H OP

△0.3

△0.8

Smart meters & solutions overseas
0.1

△0.6
FY21 1H OP

Sales stay flat

GP margindecrease

SG&A

FY22 1H OP

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved

19

Sales by Business Portfolio(Excluding intercompany sales)■Smart meters & solutions in Japan
FY2018（¥Mn）（百万円）

FY2019FY2020

FY2021

FY2022 1H

Smart meter business

41,27435,88632,01629,425

16,132

Solution business

9,408

10,006

10,51010,531

5,313

Switchgear business

5,568

5,926

5,641

6,025

2,818

Total

56,251

51,81948,16945,98324,265■Smart meters & solutions overseas
FY2018

（¥Mn）
（百万円）

FY2019FY2020

FY2021

FY2022 1H

Oceania

9,522

9,422

9,154

10,642

6,002

EuropeAsia

4,422
6,713

9,544
8,753

8,938
4,882

11,339
6,041

4,688
2,822

Middle East and others

3,295

8,770

3,703

1,071793

Total

23,95236,49026,67829,095

14,307

Copyright(C)(C)20222022 OSAKIAll Rights
Rights Reserved
Copyright
OSAKI ELECTRIC
ELECTRIC CO.,CO., LTD.
LTD. All
Reserved2020

Reinforce Business Portfolio■Smart meters & solutions in Japan: Monitored by products and services
Business Portfolio

Position and Basic Policy

Smart meter business

Drive as a core business and pursue stable profit contribution.

Solution business

As focus businesses in Japan, provide solutions for social issues
such as energy saving and decarbonization by leveraging
strong smart meter business. Aim to improve profitability inJapan.

Switchgear business

Provide to stable demand and maintain revenue and profit
contributions.

■Smart meters & solutions overseas: Monitored by regions
Business Portfolio

Position and Basic Policy

Oceania

Reinforce solution business by combining smart meters andhead-end systems. Aim for stable profit growth.

EuropeImprove profitability in UK by improving product mix andreducing production costs.

Asia

Improve profitability by focusing on high margin products andservices, such as solution services and commercial & industrial
meters.

Middle East and others

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved21

Sale of Subsidiaries• Reinforce business portfolio management and focus management
resource to core businesses• Accordingly, carried out sale of subsidiaries

Sale of an overseas subsidiary
Company：Quantum Automation Pte Ltd (a wholly owned subsidiary of EDMI)
Business: Development, integration and maintenance of building automation
systems mainly in Singapore
Sold at: Approx. 4.0 billion yen
Profit on sale: Approx. 2.1 billion yen(Recorded as an extraordinary income in FY2022 Q1)
Execution date: March 30 th, 2022
Sold to: Totech Corporation

Sale of a subsidiary in Japan
Company: Osaki Engineering Co., Ltd. (a wholly owned subsidiary of OSAKI)
Business: Development, manufacture and sale of sensor device and otherequipment
Sold at: 1.76 billion yen
Loss on sale: 0.58 billion yen(Recorded as an extraordinary loss in FY2022 Q2)
Execution date: September 30, 2022
Sold to: Hagiwara Electric Holdings Co., Ltd.
Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved22

ESG Measures

Environment

Environment-conscious operations

CO2 reduction
Measures

Products and services
for CO2 reduction

Provide products and services for optimalenergy management in and out of Japan
Environmentfriendly Group

Waste reduction

Environment-friendly products
Reduce waste, increase recycling
Reduce chemical material waste

GovernanceSocialSocially responsible operations

Technology

Safer and more secure society withmetering solution technologies

Create new values by applying AI and IoTtechnologies for various services for safer andmore secure society

Diversity

Co-working in a diversified poolof people

Create new values in collaboration withpeople across all boarders of nationalities,organizations, etc.

Governance supporting
E&S

Elevate corporate value and minimize risks

Management

Board effectivenessSupervision

Advisory committees
Executive officer system

Evaluate board effectiveness every year
continual efforts to elevate governanceSet the committees for appointment and compensation
Appoint an outside board as Chairman in Feb. 2019.
Majority are outside members
Attain fairness, objectivity and transparency
Introduction of executive officer system in June 2020
Ratio of Independent Directors: 1/3 after the General Meeting ofShareholders in June 2022
Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved23Strengthen sustainability activities -1
Establishment of the Sustainability Promotion Committee• Established the committee in April 2022, to promote group-wide
sustainability activities.
• Appointed President & Representative Director as Chairman, andmembers of the committee are appointed by the Chairman.
Basic Sustainability Policy and Materiality Goals• Based on the OSAKI Group Basic Sustainability Policy, setmateriality activities and 2030 goals.

Reference URL:

Basic Sustainability Policy:
https://www.osaki.co.jp/en/notice/20211208_Basic_Sustainability_Policy_of_the_Osaki_Electric_Group/main/00/link/en%20sustainability%20policy.pdf
Materiality goals：https://www.osaki.co.jp/en/notice/Notice_Materiality_Goals/main/00/link/Sustainability%20goals%20EN.pdf
Copyright
Copyright(C)(C)20222022OSAKI
OSAKIELECTRIC
ELECTRICCO.,
CO.,LTD.
LTD.All
AllRights
RightsReserved
Reserved24

Strengthen sustainability activities -2
Disclosure based on TCFD* Recommendations• Announced support for TCFD Recommendations and disclosed
analysis on “Governance,” “Strategy,” “Risk management
system,” and “Indicators and Targets” for 2030
*TCFD: Task Force on Climate-related Financial Disclosures

CDP Scoring• Completed and provided CDP climate questionnaire in July 2022
• Expect to receive CDP scoring in December 2022

Integrated Report 2022
• OSAKI began publishing an Integrated Report from 2021
• The 2022 report is to be published in December 2022
(English version to be published in February 2023, in digital version only)

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved25Shareholder Return Policy
Dividend Policy■Provide dividends in accordance with financial performance■In principle, providing either the higher of DOE (Dividend on Equity Ratio) of 2% orPay out ratio of 30%FY2022
FY2020

FY2021

1H Results/Forecast(Yen)FY2018Interim/year-end

10 / 1010 / 1010 / 1010 / 1010 / 102020202020

Total dividend Annumpaid

978 Mn978 Mn980 Mn974 MnPayout ratio

Annum

54.1%

81.7%

203.3%

―DOE

Annum

2.2%

2.2%

2.2%

Dividend pershareAnnum

FY20192.3%

102.0%
2.3%

Policy on Share Buy-back■Placing higher capital efficiency as priority, consider the share buy-back option
while taking factors such as cash on hands, working capital, financial performanceand stock price trend, and investment opportunities into consideration
Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved26

Shareholder Return Measures
Repurchase of own shares
1. Overview of repurchase(1) Class of shares to be repurchased: Common shares(2) Total number of shares to be repurchased: 2.5 million shares (Maximum)(5.09 % of outstanding shares (excluding treasury stock))(3) Total amount of repurchase price: 1.5 billion yen (Maximum)(4) Period of repurchase: From February 2, 2022 to February 1, 2023
(5) Method of repurchase: Open market purchase on the Tokyo Stock Exchangeth

2. Status of cumulative share repurchased (as of November 30 , 2022)(1) Total number of shares repurchased: 2.2 million shares(2) Total amount of repurchase price:1.09 billion yen

Copyright (C) 2022 OSAKI ELECTRIC CO., LTD. All Rights Reserved

27

OSAKI ELECTRIC CO., LTD.
TSE Prime Market
Code: 6644

■Figures in the document are for reference and include unaudited figures.
■Forward-looking figures are based on data and information available up to the date of its announcement
and may differ significantly from actual results.
■Please refrain from copying the data, contents and other information subjected to copy right.