May 11, 2023

Osaki Electric Co., Ltd.
Tokyo Stock Exchange Prime Market
Securities code: 6644

Summary of FY2022 Consolidated Financial Results(12 Months ended March 2023)⚫

⚫
⚫

Consolidated sales were increased by 17.2% year on year to ¥89.3 Billion. Operating
income improved by 74.3% to ¥2.23 Billion. Net income attributable to owners ofparent were ¥1.32 billion in contrast to loss of ¥0.66 Billion in the previous fiscal year,
due to extraordinary income from sale of subsidiaries in and out of Japan.
In Japan, sales of smart meters and solutions increased from the previous fiscal year,
resulting in profit increase.
In the overseas, shipments to Oceania showed healthy increase from the previous fiscal
year while shipments to UK decreased due to a shortage of electronic components. On a
U.S. dollar basis, overall sales decreased while increased on a Japanese Yen basis
factoring in the forex impacts. Overall profits decreased from sales decrease on a U.S.
dollar basis and hikes in material costs.

1. Consolidated Financial Results
FY2021
Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
Production equipment
Real estate
Adjustment

Gross profit
Ratio to sales
SG & A expenses
Ratio to sales

FY2022

76,18446,00630,068692
553(1,137)
16,37589,25354,427
34,613761
571(1,121)
17,964

21.5%

20.1%

15,097

15,737

19.8%

17.6%

(Millions of yen)
YoY Change
Amount%13,069
8,420
4,545
69
1715
1,589

+17.2%+18.3%+15.1%+10.0%+3.2%－+9.7%

639+4.2%(1.4)pt(2.2)pt

1,277

2,226

Ratio to sales

1.7%

2.5%

Smart meters & solutions in Japan

Ordinary income

1,22558(282)
271
4
1,189

3,816(1,886)
9295(7)1,885

2,590(1,944)
291
23(12)
695+211.4%－－+8.7%－+58.5%

Profit attributable to owners of parent(658)1,319

1,978－Net income per share（yen）(13.42)

27.86

41.28

－

ROE

(1.4)%

2.9%―+4.3pt

Operating income

Smart meters & solutions overseas
Production equipment
Real estate
Adjustment

949+74.3%+0.8pt* "Production equipment" includes accumulated sales and profits of Osaki Engineering Co., Ltd. for thesix months ended September 30, 2022. Osaki Electric has sold all holding shares of Osaki
Engineering Co., Ltd. as of September 30th.

12. Revenue by Business Portfolio (Excluding intercompany sales)（1）Smart meters & solutions in Japan
FY2019FY2020

FY2021YoY Change

FY2022

Amount%FY2023
Forecast(Millions of yen))
Full-year Forecast
YoY Change
Amount%Smart meterbusiness

35,88632,01629,42534,885

5,459+18.6%

30,500(4,385)(12.6)%

SolutionBusiness

10,006

10,51010,531

12,483

1,951+18.5%

13,000516+4.1%

Switchgear
Business

5,926

5,641

6,025

7,037

1,012+16.8%

7,000(37)(0.5)%

Total

51,81948,16945,98354,4068,423+18.3%

50,500(3,906)(7.2)%*Referential figures based on managerial accounting.

Smart meter business: Sale of smart meters and measurement and control equipment
including smart meter peripheral devices for power companies.
Solution business: Provide services and products and deliver solutions to customers (otherthan power companies)
Switchgear business: Sale of switchgears（2）Smart meters & solutions overseas
FY2019FY2020

FY2021YoY Change

FY2022

Amount%FY2023
Forecast(Millions of yen)
Full-year Forecast
YoY Change
Amount%Oceania

9,422

9,154

10,642

15,6284,986+46.9%

16,500871+5.6%

Europe

9,544

8,938

11,33910,129(1,209)(10.7)%

15,5005,370+53.0%

Asia

8,753

4,882

6,041

5,800(241)(4.0)%

3,000(2,800)△48.3%

Middle Eastand others

8,770

3,703

1,071

2,062

990

+92.4%

2,000(62)

△3.0%

Total

36,49026,67829,09533,6204,525+15.6%

37,0003,379+10.1%

Average
Exchange rate

¥109.05/USD¥106.76/USD¥109.90/USD¥131.62/USD¥131.62/USD（assumption）*Calculations are based on the annual securities report.

3. R&D expenditures, Depreciation, Capital expenditure

FY2021

FY2022YoY Change
Amount%FY2023
Forecast(Millions of yen)
Full-year Forecast
YoY Change
Amount%R&D expenditures

3,043

3,233

189+6.2%

3,900

666

+20.6%

Depreciation

2,536

2,587

51+2.0%2,200(387)(15.0)%

Capital expenditures

2,794

1,881(912)(32.7)%

3,300

1,418

+75.4%

24. FY2023 Consolidated Forecast(Millions of yen)

1H

Full-year

YoY Change

FY2022

FY2023
Forecast

Amount%FY2022

39,56243,000

3,437

+8.7%

89,25324,27624,30023+0.1%

14,64719,0004,352

Production equipment

761－Real estate

282

Adjustment

YoY Change

FY2023
Forecast

Amount%88,000(1,253)(1.4)%

54,42750,500(3,927)(7.2)%+29.7%

34,61338,000

3,386

+9.8%

(761)

－

761

－

(761)

－

250

(32)

(11.6)%

571

600

28+4.9%

(405)

(550)

(144)

－

(1,121)(1,100)

21－

535

900

364

+68.1%

2,226

2,800

573

+25.7%

Smart meters &solutions in Japan

1,163550(613)(52.7)%

3,816

1,900(1,916)(50.2)%

Smart meters &solutions overseas(777)

200977－(1,886)600

2,486－

9－

(9)

－

9－

(9)

－

Real estate

141

150

8+6.1%

295

300

4+1.6%

Adjustment

(1)

－

1－

(7)

－

7－

Ordinary income

348

700

351

+100.9%

1,885

2,400

514

+27.3%

Profit attributable toowners of parent

1,041

200(841)(80.8)%

1,319

1,000(319)(24.2)%Net sales
Smart meters &solutions in Japan
Smart meters &solutions overseas

Operating income

Production equipment⚫

Sales of Smart meters & solutions in Japan will remain stagnant up until the demand pickup until fiscal 2025 when the introduction of next-generation smart meters is anticipated.
Profits are expected to decrease due to sales decrease aforementioned, in addition tomaterial costs, which the Company has worked to contain to some degrees, are expected
to raise from yen depreciation.

⚫

As for Smart meters & solutions overseas, a shortage of electronic components is expected
to resolve and shipments to UK will increase accordingly. Oceania is also showing steady
growth, leading to overall sales to increase. Profits are expected to recover due to sales
increase from aforementioned factors and a slowdown in material cost hikes, that werelargely caused by material shortages.

35.

FY2023-2027 Mid-term Management Plan
(Millions of yen)

FY2023
Forecast

FY2024
Outlook

FY2025
OutlookNet sales

88,00091,00098,000Japan (**)

51,00051,00055,000Overseas

37,00040,00043,000Operating income

2,800

4,000

5,500

Japan (**)

2,200

2,700

3,500

Overseas
Ordinary income

600

1,300

2,000

2,400

3,700

5,200

Profit attributable toowners of parent

1,000

2,2003,300

ROE

2.5%

5.0%

7.0%

FY2027
Mid-term Target

8.0% (or higher)* Break down of Net Sales are external sales.
** Japan includes “Smart meters & solutions in Japan” and “Real estate”.

6.
⚫

Shareholder Return
The Company sets basic policy to carry out the continual distribution of a steady dividend toshareholders, while providing additional performance-based dividends.

⚫

The basic policy states that the amount distributed will be based on higher of either a dividend
payout ratio of 30% or 2% of DOE (dividend on equity).

⚫

The year-end dividend outlook for the current year is 10 yen per share, and annual dividends of
20 yen.

⚫

For the next fiscal year, the Company plans to pay an interim dividend of 10 yen per share and10 yen of year-end dividend, resulting in annual dividends of 20 yen, the same as the currentyear.
Dividend per share
InterimYear-end

AnnualTotal amount ofdividends

Consolidated
payout ratio

FY2021

10 yen

10 yen20 yen974 million yen－FY2022

10 yen

10 yen20 yen942 million yen

71.8%

FY2023 Forecast

10 yen

10 yen20 yen93.6%⚫ 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 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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