November 2, 2021

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

FY2021 First Half
Summary of Consolidated Financial Results(Six Months ended September 30, 2021)⚫

⚫

⚫

Consolidated sales were increased by 1.0% year on year to ¥36.1 Billion. Operating
income declined by 39.9% to ¥0.46 Billion. Net loss attributable to owners of parent
were ¥0.24 billion in contrast to ¥0.20 Billion in loss in the previous first half.
In Japan, sales of smart meters were slightly increased while sales of smart locks, which
recorded good shipments in the previous first half, decreased year on year. Profits
decreased year on year, due to sales decrease as well as intensified price competition ofsmart meters and a rise in raw material prices.
In the overseas, while orders for Iraq (Kurdistan Regional Government) declined fromthe temporal increase in orders in the same period of the previous fiscal year,shipments to Oceania and UK increased compared to the previous first half whereshipments were restricted from the spread of COVID-19. All in all, sales and profits
increased year on year.

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

FY2020 1H

FY2021 1H

Amount35,73422,30812,916627
275(393)
8,044

36,087
21,405
14,613337
277(546)
7,878

Ratio to sales

22.5%

21.8%

7,277

7,417

Ratio to sales

20.4%

20.6%

767

461

Ratio to sales

2.1%

1.3%

Smart meters & solutions in Japan

Adjustment

948
(224)
(94)
138
0366
118
(162)
139
(0)

(581)
343
(67)
0(1)

(61.3)%－－+0.6%－Ordinary income

744

531(213)(28.7)%

Profit attributable to owners of parent

(202)

(236)

(34)

－Net income per share（yen）(4.14)(4.83)(0.69)－Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
Production equipment
Real estate
Adjustment

Gross profit
SG & A expenses
Operating income

Smart meters & solutions overseas
Production equipment
Real estate

353
(903)
1,697
(290)
1(152)
(165)

%

+1.0%
(4.0)%+13.1%(46.3)%+0.7%－(2.1)%(0.7)pt

140(306)+1.9%+0.2pt(39.9)%(0.8)pt* "Production equipment" and "Real estate" which were previously included in "Others," have been
reclassified as reporting segments due to an increase in their quantitative materiality.

12. Consolidated Sales by Region (Excluding intercompany sales)(Millions of yen)
YoY ChangeJapan
Overseas
Oceania
EuropeAsia
Middle East and others

Total
Average exchange rate

FY2020 1H

FY2021 1H

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

21,927
14,159
5,093
5,750
2,737

(1,202)
1,556
977
1,569
572

(5.2)%+12.3%+23.7%+37.5%+26.5%

2,141

578(1,563)(73.0)%

35,73436,087353+1.0%\108.23/USD\107.82/USD%

Amount*Calculations are based on the annual securities report.

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

MetersMonitor Control(**)
Switchgears
VCTs
Others(including adjustments)

Total

YoY Change

FY2020 1H

FY2021 1H

11,037
1,837
3,097
2,108

11,301
1,380
2,839
1,940

264
(457)
(258)
(168)

+2.4%
(24.9)%(8.3)%(8.0)%

4,216

3,931(285)(6.8)%

22,296

21,393(903)(4.1)%

Amount%*Referential figures based on managerial accounting** Monitor Control: Energy management systems, smart locks, etc.

（2）Smart meters & solutions overseas

MetersMonitor Control(**)
Total

FY2020 1H

FY2021 1H

8,496
4,091
12,587

8,913
5,236
14,149(Millions of yen)
YoY Change
Amount417
1,145
1,562%+4.9%+28.0%+12.4%*Referential figures based on managerial accounting** Monitor Control: Meter related systems, communications hubs, etc.

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

R&D expenditures
Depreciation
Capital expenditures

FY2020 1H

FY2021 1H

1,496
1,330771

1,517
1,221872

2

Amount21(109)101%+1.4%(8.2)%+13.1%

5. FY2021 Consolidated Forecast
Electronic component shortages have been hindering smart meter business, whichis the main business both in Japan and overseas. While our Group puts its best
effort to minimize the impact, we expect significant procurement risk from prolonged
electronic component shortages. Because it is difficult to reasonably accumulate thedegree of financial impact at the moment, the Company regrets to forego the noticeof revised financial forecasts for the fiscal year ending March 31, 2022. We will
announce the forecast upon reasonable calculation.
(Millions of yen)

Full-year
FY2020Results

FY2021

FY2021

RevisedInitialForecasts Forecast

Net sales

76,25583,000－Operating income

2,684

3,500－

Ordinary income

2,888

3,300

－

Profit attributable toowners of parent

482

3,000－⚫ 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).

3