Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2023
[Japanese GAAP]May 11, 2023
Company name: Osaki Electric Co., Ltd.
Stock exchange listing: Tokyo
Code number: 6644
URL: https://www.osaki.co.jp
Representative: Chairman and CEO
Yoshihide Watanabe
Director and Managing Executive Officer
Contact:
Ryuichi Ueno
Head of Corporate Strategy Division
Phone: +81-3-3443-7171
Scheduled date of Annual General Meeting of Shareholders: June 28, 2023
Scheduled date of commencing dividend payments: June 29, 2023
Scheduled date of filing annual securities report: June 29, 2023
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes (for Institutional Investors and Analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Fiscal year ended
March 31, 2023
89,253
17.2
2,226
74.3
1,885
59.3
1,319
March 31, 2022
76,184(0.1)
1,277(52.4)
1,189(58.8)(658)(Note) Comprehensive income:Fiscal year ended March 31, 2023:¥
3,296 million [358.8%]
Fiscal year ended March 31, 2022:¥
718 million [(57.2) %]Basic earnings per Diluted earnings per Rate of return on
share
share
equityFiscal year ended
March 31, 2023
March 31, 2022

Ordinary profit tototal assets ratio

Operating profit to
net sales ratio

Yen

Yen

%

%

%

27.86
(13.42)

27.41
-

2.9
(1.4)

2.0
1.3

2.5
1.7

(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Net assets

Millions of yen

Millions of yen

93,26891,222As of March 31, 2023:
As of March 31, 2022:

Capital adequacy ratio

¥
¥

―1―

58,62957,61145,933 million
45,236 million

Net assets per share

%

Yen

49.2
49.6

981.44936.60(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

260
4,422

1,349
(1,219)(5,072)(2,934)

12,71815,335

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Total
dividends

Dividends
to netassetsPayoutratio(consolidated)(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

%

%

March 31, 2022

-

10.00

-

10.00

20.00

974

-

2.1

March 31, 2023

-

10.00

-

10.00

20.00

942

71.8

2.1

-

10.00

-

10.00

20.00

Yen Millions of yen

Fiscal year ending
March 31, 2024

93.6

(Forecast)
3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Six months ending
September 30, 2023
Full year

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

43,000

8.7

900

68.1

700

100.9

200

(80.8)

4.27

88,000

(1.4)

2,800

25.2

2,400

26.6

1,000

(24.8)

21.37* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No
New(Company name:)(Company name:
Exclusion:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2023:
49,267,180 shares
March 31, 2022:
49,267,180 shares
2) Number of treasury shares at the end of the period:
March 31, 2023:
2,464,755 shares
March 31, 2022:
968,247 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2023:
Fiscal Year ended March 31, 2022:

47,374,082 shares
49,040,808 shares―2―

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Ordinary profit

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

29,88923,461

27.4
(8.4)

1,388
(865)

-

2,150
23

(97.9)

3,350
(77)

-

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2023
March 31, 2022

Yen

Yen

70.72
(1.57)

69.58-(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Net assets

Millions of yen

Millions of yen

54,34951,551
As of March 31, 2023:
As of March 31, 2022:

Capital adequacy ratio¥¥

37,60535,71137,139 million
35,201 million

Net assets per share

%

Yen

68.3
68.3

793.53728.83*Financial results are exempt from the audit conducted by certificated public accountants or an auditing firm.
*Proper use of business forecasts and other special notes
The description of the future such as business outlook made in this statement are based on the information we currently have and thecertain assumptions that we consider reasonable and any reference to future outlook does not represent commitment that it will beachieved.
The actual performance may significantly vary due to the various factors. Conditions for business forecast assumptions and a suggested
use of business forecast, please refer to the page 8, ”1.4 Consolidated Forecast”.
The Company plans to hold a briefing session for Institutional investors and Analysts on May 23, 2023. Documents of the briefing
session will be posted on our website immediately on the day of the event.

―3―

[APPENDIX]

1. Business Results

5

1.1 Highlight of Operating Results of this Fiscal Year5

1.2 Consolidated Financial Conditions

6

1.3 Cash Flows6

1.4 Consolidated Forecasts

8

1.5 Fundamental Policy Regarding Distribution of Profits9

1.6 Group Structure10

1.7 Business and Other Risks

11

2. Consolidated Financial Statements

14

2.1 Consolidated Balance Sheets

14

2.2 Consolidated Statements of Income andConsolidated Statements of Comprehensive Income

16

2.3 Consolidated Statement of Changes in Net Assets

18

2.4 Consolidated Statement of Cash Flows20

2.5 Notes to Consolidated Financial Statements

22(Business Segments)

22(Per Share Information)

23

―4―

1. Business Results (Fiscal year ended March 31, 2023)
1.1 Highlight of Operating Results of this Fiscal Year⚫

Consolidated sales were increased by 17.2% year on year to 89.3 billion yen. Operating income
improved by 74.3% to 2.23 billion yen. Net income attributable to owners of parent were 1.32
billion yen in contrast to loss of 0.66 billion yen 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 inmaterial costs.
Summary of Consolidated Financial Results for the Year ended March 31, 2023
(Millions of yen)FYE Mar '22
Net salesFYE Mar '23

YoY change
Amount%76,18489,25313,06917.2%

Smart meters & solutions in Japan

46,00654,427

8,420

18.3%

Smart meters & solutions overseas

30,06834,613

4,545

15.1%

Production equipment

692

761

69

10.0%

Real estate

553

571

17

3.2%

Adjustment-1,137-1,121

15－

Operating income

1,277

2,226

949

74.3%

Smart meters & solutions in Japan

1,225

3,816

2,590

211.4%

Smart meters & solutions overseas

58-1,886-1,944－

Production equipment

-282

9

291

－

Real estate

271

295

23

8.7%

Adjustment

4

-7

-12

－

Ordinary income

1,189

1,885

695

58.5%

Profit attributable to owners of parent

-658

1,319

1,978

－

―5―

1.2 Consolidated Financial Condition(Millions of yen)

As of March 31, 2022

As of March 31, 2023

YoY change

Total assets

91,222

93,2682,045

Total liabilities

33,61034,638

1,028

Total equaty

57,611

58,6291,017

Equity ratio

49.6%

49.2%

-0.3%

Total assets at March 31, 2023 were 93,268 million yen, a 2,045 million yen increase from March
31, 2022. This was mainly due to an increase in notes and accounts receivable -trade and contract
assets, and inventory by 3,059 million yen and 2,967 million yen respectively while cash and cash
equivalents decreased by 2,686 million yen.
Total liabilities were 34,638 million yen, a 1,028 million yen increase from March 31, 2022. This was
mainly due to an increase in notes and accounts payable – trade and electronically recorded
obligations – operating and tax payable by 1,681 million yen and 401 million yen respectively,
despite a decrease in short-term and long-term borrowings at overseas subsidiaries by 1,419 million
yen.
Net assets were 58,629 million yen, a 1,017 million yen increase from March 31, 2022. This was
mainly due to an increase in foreign currency translation adjustments, capital surplus and noncontrolling interest by 843 million yen, 362 million yen and 363 million yen respectively whiletreasury shares deducted from equity increased by 767 million yen.

1.3 Cash Flows
Cash and cash equivalents at beginning of period was 12,718 million yen, a 2,616 million yen
decrease from the beginning of the previous fiscal year ended March 31, 2022.
(Millions of yen)FYE Mar '21

FYE Mar '22

YoY change

Net cash provided by operating activities

4,422

260

-4,161

Net cash provided by investing activities-1,219

1,349

2,569

Net cash provided by financing activities-2,934-5,072-2,138Cash and cash equivalents at end of year

15,335

12,718-2,616―6―

(1) Net cash provided by operating activities
Net cash provided by operating activities for the year ended March 31, 2023 was 260 million yen.
This was mainly due to a recording of 3,574 million yen in income before income taxes and minority
interests, 2,587 million yen in depreciation and amortization, 1,982 million yen in increase in notes
and accounts receivable – trade offset the decrease in cash from an increase in trade receivables
by 3,421 million yen, inventory by 2,593 million yen and a recording of tax payable in the amountof 851 million yen.
(2) Net cash provided by (used in) investing activities
Net cash provided by investing activities for the year ended March 31, 2023 was 1,349 million yen.
This was mainly due to an income from sale of consolidated subsidiaries in the amount of 3,638 million
yen offset the payments for property, plant and equipment in the amount of 1,443 million yen.

(3) Net cash provided by (used in) financing activities
Net cash used in financing activities for the year ended March 31, 2023 was 5,072 million yen. Thiswas mainly due to a decrease in short-term and long-term loans payable overseas by 2,464 million
yen, dividends paid to non-controlling interest in the amount of 1,486 million yen, and payments for
repurchase of its own stock in the amount of 847 million yen.

Cash Flow Indicators(Millions of yen)FYE Mar '21

FYE Mar '22

FYE Mar '23

Equity ratio

51.2%

49.6%

49.2%

Equity ratio at market value

32.8%

24.8%

26.7%

Cash flow to interest-bearing debt ratio (per annum)

0.6

2.1

29.4

Interest coverage ratio (times)

27.4

15.4

1.8

(Note)
Equity ratio: Equity / Total assets
Equity ratio at market value: Market capitalization / Total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt / Net cash provided by operating activities
Interest coverage ratio: Net cash provided by operating activities / Interest payment* Each indicator is calculated based on the consolidated financial report.
* Market capitalization is calculated by share price at the end of year multiplied by total number ofissued shares excluding treasury stock.
* Net cash provided by operating activities is equivalent to that of consolidated statements of cash
flows in the financial report for the fiscal year ended March 31, 2023. Interesting-bearing debt
includes all debts with interest payments on the consolidated balance sheets as of March 31, 2023.
Interest payments are equivalent to that of consolidated statements of cash flows for the fiscal year
ended March 31, 2023.

―7―

1.4 Consolidated Forecasts(1) Consolidated forecasts for the fiscal year ending March 31, 2024
(Millions of yen)FYE Mar '23 FYE Mar '24
Net sales

YoY change
Amount%89,25388,000-1,253-1.4%

Smart meters & solutions in Japan

54,42750,500-3,927-7.2%

Smart meters & solutions overseas

34,61338,000

3,386

9.8%

Production Equipment

761

－

-761

－

Real Estate

571

600

28

4.9%

Adjustment-1,121-1,100

21

－

2,226

2,800

573

25.7%

Smart meters & solutions in Japan

3,816

1,900

-1,916-50.2%

Smart meters & solutions overseas-1,886

600

2,486

－

9

－

-9

－

Real Estate

295

300

4

1.6%

Adjustment

-7

－

7

－

Ordinary income

1,885

2,400

514

27.3%

Profit attributable to owners of parent

1,319

1,000

-319

-24.2%

Operating income

Production Equipment

Sales of Smart meters & solutions in Japan will remain stagnant up until the demand pick up 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 to material costs, which the Company has worked tocontain 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 andshipments 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 aslowdown in material cost hikes, that were largely caused by material shortages.
All in all, consolidated sales for the fiscal year ending March 31, 2024 are expected to decrease by 1.4%
to 88,000 million yen. Operating income and ordinary income are expected to increase by 25.7% to 2,800
million yen and 27.3% to 2,400 million yen respectively. Profit attributable to owners of parent expected todecrease by 24.2% to 1,000 million yen.

―8―(2) Mid-term Management Plan
(Millions of yen)FYE Mar '24 FYE Mar '25 FYE Mar '26
Forecast

Outlook

OutlookNet sales

88,00091,00098,000Operating income

2,800

4,000

5,500

Ordinary income

2,400

3,700

5,200

Profit attributable to owners of parent

1,000

2,200

3,300

ROE

2.5%

5.0%

7.0%

FYE Mar '28
Mid-term Target

8.0% (or higher)

1.5 Fundamental Policy Regarding Distribution of Profits
The Company sets basic policy to carry out the continual distribution of steady dividends to shareholders
while providing additional performance-based dividends.
The basic policy states that, in principle, the amount distributed is higher of either a dividend payout ratio of
30% or 2% of DOE (dividend on equity).
With the goal of increasing capital efficiency, we continuously evaluate the share buy-back option while taking
such factors as cash on hands, working capital, financial performance and stock price trend, and investment
opportunities into consideration.
As part of our drive to increase our long-term growth in corporate value, we apply retained earnings towards
R&D investments and capital expenditures that will increase our competitiveness. We also aim to use retained
earnings effectively towards M&A and other business opportunities aimed at increasing earnings.
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 and 10 yen of yearend dividend, resulting in annual dividends of 20 yen, the same as the current year.

―9―1.6 OSAKI ELECTRIC Group Structure
Reporting Segments
Products and Services

Products and Parts

Enegate Co., Ltd.

Products and Services

OSAKI Electric Systems Co., Ltd.

Products

OSAKI Datatech Co., Ltd.

Products

Products and Parts

Products

Smartmeters &solutionsin Japan

Products and Parts

Products
Iwate OSAKI Electric Co., Ltd.
Products and Parts OSAKI Platech Co., Ltd.

OSAKIELECTRIC
CO.,LTD.

[Holding company]
OSAKI United International Pte. Ltd.
(Singapore)

Products and Services
EDMI Limited(Singapore)

Products
EDMI Europe Limited (UK)EDMI Pty. Ltd. (Australia)

Smartmeters &solutionsoverseas

Products and Services

Parts
EDMI Electronics Sdn Bhd
Products (Malaysia)

Parts
Products EDMI Shenzhen Co., Ltd.
(China)Parts

Real Estate Rental

Production
equipment

OSAKI Estate Co., Ltd.

Real Estate Rental

OSAKI Engineering Co., Ltd.

Products

Real Estate Rental

Real estate―10―

Customer1.7 Business and Other Risks
The following are the potential major risks that management recognizes as having a material impact on thefinancial position, results of operations and cash flows of the consolidated companies in the matters related tobusiness conditions, accounting conditions, etc. described in the summary of financial results.
(1) Market fluctuations
Market fluctuations for the products OSAKI and its group companies provide are caused by various
factors such as political and economic conditions of the regions in subject or government policies. In
addition, product demand is affected by major customers’ financial performance or business andinvestment plans.
Smart meters, which are the Group's mainstay products, are replaced periodically under regulations. For
example, the Measurement act in Japan sets at 10years for the verification period (or the usable period)of smart meters. Overseas, while usable periods and regulations differ by countries and regions, periodic
replacements of smart meters are often required. As a result, demand fluctuations occur in accordancewith cyclical periods of replacements which in turn, affect the financial positions and operations of theGroup.
To encounter the aforementioned risks, the Group is expanding its business not only in Japan but alsoin Oceania, Europe, and other emerging countries to disperse the impact of market fluctuations. In
addition, the Group is working to stimulate demand by launching new products and adding additional
functions, and to cultivate new customers. While we are working to disperse the impact of fluctuations indemand, significant fluctuations in demand could affect the Group's performance.
(2) Price competition
The smart meter industry is highly competitive both in and outside of Japan, and pricing is one of themost important factors in sustaining competitive positions. To avoid price competition, the Group selects
markets where quality, safety and added value are appreciated, as well as committing to enhance
product competitiveness. However, if prices decline significantly or large quantities of products are soldat lower than anticipated prices, the Group's performance will be negatively impacted.
(3) Supply chain risks
a. Procurement of parts and materials
The Group implements specification changes of smart meters to improve functionality and quality, as
well as reducing costs. Therefore, procurement of parts and materials is carefully planned to maintainappropriate inventory levels while responding to specification changes of smart meters, order
forecasts and procurement lead-time.
However, insufficient supply capacity amid tight demand for materials could adversely influence theGroup’s manufacturing operations. This risk is currently evident due to the worldwide shortage ofsemiconductors. In addition, changes in customer requests may lead to inventory retention of disusedparts and materials. Due to the aforementioned factors, the Group’s performance may be affected.
b. Cost of parts and materials
The Group purchases parts and materials at appropriate prices. However, prices for semiconductors,
metals and other products are rising and they may rise higher in the future. In addition, higher logistics
costs due to rising crude oil prices and forex fluctuations may adversely affect profit margins if they
are unable to fully compensated by selling products at appropriate pricing.

―11―

(4) Overseas business
The Group’s oversea business operations are mainly in Oceania, Europe, and other emerging countries.
Overseas sales accounted for approximately 40% of the consolidated net sales for the year ended March
31, 2023. OSAKI’s executives concurrently serves as Directors at its overseas subsidiary, recognizingthat overseas business is essential in the mid to long term growth of the Group. Management recognizes
the importance in close communication with overseas subsidiaries and information regarding operations
and risks are reported in a timely manner. In response to reducing country risk, the Group operates
production at multiple sites, including outsourcing, across multiple countries.
Overseas business, however, are constantly exposed to geopolitical risks such as political and economic
conditions, conflict and terrorism, as well as uncertainty regarding laws, regulations and systems.
Therefore, unexpected changes in the market or delays in projects, delays in production and shipments
may adversely affect the Group’s operations and financial positions.
(5) Fluctuations in foreign exchange and interest rates
Fluctuations in foreign currency exchange rates affects the Group’s assets, liabilities, and income ofoverseas subsidiaries. The Group engages in hedging transactions to reduce the impact of foreignexchange fluctuations, but sudden fluctuations in foreign exchange rates may affect the Group's
performance and financial position.
(6) Quality of products and services
The Group manufactures or outsources production based on a predetermined level of quality control. A
strict quality control system has been established to ensure that anomalies or malfunctions in products
are detected before shipments. However, in case anomalies or malfunctions occur in the future, theGroup's performance would be affected in the event of a product recall, replacement, or compensation
for damages.
(7) Research and development
OSAKI Group is strengthening R&D aimed at heightening product and service competitiveness. While
the Group works diligently to collect necessary information in a timely manner for quick decisions, andrespond flexibly to changes in the focus areas of technologies, there remains risks of slow response to
the technology demand due to delay in development processes and shortages in researchers. The
Group also recognizes the risks of the intellectual properties be invaded. Likewise, the Group also
recognizes the risks of unintentionally invading a third party’s intellectual properties which may cause
claims for compensation or legal actions against the Group. In such cases, the Group’s financial positionis potentially affected.
(8) Sustainability
OSAKI Group recognizes that risks and opportunities related to sustainability is an importantmanagement issue. In response, the Group established the Sustainability Promotion Committee topromote a group-wide action to solve material risks and explore opportunities.
However, delays in responding to these risks could affect the Group's medium-to long-term performance.
(9) Risks associated with human resources
OSAKI Group recognizes that to carry out the mid-to-long term business strategies successfully,
personnel resources and development is important. The Group recruit personnel freshly out of schoolsor seasoned personnel while providing various training programs. At the same time, the Group puts inefforts to provide personnel systems that are fair and rewarding and to improve the work environment
for all employees.
―12―However, competitive environment in recruitment and a decrease in working population in Japan, may
lead to a lack of necessary personnel in carrying out the aforementioned business strategies, affecting
the Group’s performance as a result.
(10) Risks Associated with Disasters
Natural disasters such as earthquakes and typhoons, and floods, accidents such as fires, infectious
diseases and other unpredictable factors may delay or suspend production or shipments for a long periodof time and may adversely affect the Group’s business operations and financial conditions.

―13―

2 Consolidated Financial Statements
2.1 Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Deposits paid
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods

11,857
3,546

9,171
4,611

17,436

20,495

6,031

7,775

Work in process
Raw materials and supplies

3,165
6,911

2,673
8,626

Other
Allowance for doubtful accounts

3,234
(530)

3,778
(514)

Total current assets

51,65356,61823,253(14,372)

22,160(13,820)

8,880

8,339

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles

15,344

15,993

Accumulated depreciation(12,346)(13,152)

2,998

2,841

Land

Machinery, equipment and vehicles, net

12,83012,090

Leased assets
Accumulated depreciation

3,527(1,681)

3,389(1,866)

Leased assets, net

1,845

1,523

Construction in progress
Other

526
7,303

74
7,418

(6,613)(6,783)

689

634

Accumulated depreciation
Other, net

27,77025,502Intangible assets
Investments and other assets

Total property, plant and equipment

868

735

Investment securities
Retirement benefit asset

5,229
1,525

5,660
1,571

Deferred tax assets
Other

1,372
2,805

1,412
1,770

Allowance for doubtful accounts

(3)

(3)

Total investments and other assets

10,93010,412

39,56836,64991,222

93,268

Total non-current assets
Total assets―14―

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

7,324
2,965

8,172
3,799

Short-term borrowings
Income taxes payable

6,926
502

2,864
904

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on liquidation of subsidiaries
and associates
Provision for product warranties

1,656

1,543

48

39

-

14

473

576

Other

6,604

7,092

Total current liabilities

26,50225,008Long-term borrowings
Lease liabilities
Provision for retirement benefits for directors (andother officers)
Provision for repairs

1,612

2,642
1,516

42

47

21

28

Retirement benefit liability
Deferred tax liabilities

2,479
2,154

2,404
2,209

Non-current liabilities

Other

798

781

7,108

9,630

33,61034,638

Share capital
Capital surplus

7,965
8,750

7,965
8,759

Retained earnings
Treasury shares

25,670(487)

26,033(1,254)

Total shareholders' equity

41,90041,503

1,119

1,423

1,667
549

2,510
496

3,336

4,430

509
11,865466
12,22857,611

58,62991,222

93,268

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets―15―2.2 Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

Net sales
Cost of sales

76,18459,80889,25371,288Gross profit

16,375

17,964

Selling, general and administrative expenses

15,097

15,737

Operating profit

1,277

2,226

Non-operating income
Interest income

21

21

Dividend income
Gain on sale of investment securities

155
-

229
98

Subsidy income
Other

206
144

46
120

Total non-operating income

528

516

288

147

191
136

586
124

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

616

858

1,189

1,885

Gain on sale of non-current assets
Gain on sale of shares of subsidiaries and associates

-

327
1,957

Total extraordinary income

-

2,284

74
-

580

-

14

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment losses
Loss on sale of shares of subsidiaries and associates
Provision for loss on liquidation of subsidiaries andassociates
Total extraordinary losses

74

595

1,114

3,574

Income taxes - current

952

1,346

Income taxes - deferred

61

25

1,013

1,371

100

2,202

Profit before income taxes

Total income taxes
ProfitProfit attributable to non-controlling interests

759

882

Profit (loss) attributable to owners of parent

(658)

1,319

―16―

Consolidated Statements of Comprehensive Income(Millions of yen)
For the fiscal year
ended March 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

For the fiscal year
ended March 31, 2023
100

2,202

131
451

303
843

Remeasurements of defined benefit plans, net of tax

34

(52)

Total other comprehensive income

617

1,094

Comprehensive income

718

3,296

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

(40)

2,413

759

882

―17―

2.3 Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit (loss)
attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodBalance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit (loss)
attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period7,965

CapitalsurplusRetainedearnings

8,750

27,319Treasuryshares
(140)

(7)
7,965

8,750

27,312

Total
shareholders'equity43,895(7)(140)

43,888

(981)

(981)

(658)

(658)
(406)

(406)

(1)

59

58

-

-

(1,641)(346)(1,987)

7,965

8,750

25,670(487)

41,900

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasureme accumulateddifference on
currency
nts of defined
otheravailable-for- translation
benefit plans comprehensiv
sale securities adjustmente income

Shareacquisitionrights

Noncontrollinginterests

509

11,764

988

1,216

514

2,718

Total net
assets

58,887
(7)

988

1,216

514

2,718

509

11,76458,880

(981)
(658)
(406)
58
131

451

34

617

-

101

718

131

451

34

617

-

101

(1,269)

1,119

1,667

549

3,336

509

11,86557,611―18―

For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit (loss)
attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodBalance at beginningof period
Changes during
periodDividends ofsurplusProfit (loss)
attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period7,965

CapitalsurplusRetainedearnings

8,750

25,670Treasuryshares(487)

Total
shareholders'equity41,900

(957)

(957)

1,319

1,319

8

(847)

(847)

80

88

-

8

362

(767)

(397)

7,965

8,759

26,033(1,254)41,503

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasureme accumulateddifference on
currency
nts of defined
otheravailable-for- translation
benefit plans comprehensiv
sale securities adjustmente income

Shareacquisitionrights

Noncontrollinginterests

509

11,865

1,119

1,667

549

3,336

Total net
assets57,611

(957)
1,319
(847)
88
303

843

(52)

1,094

(42)

363

1,414

303

843

(52)

1,094

(42)

363

1,017

1,423

2,510

496

4,430

466

12,22858,629―19―

2.4 Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended March 31, 2022
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31, 2023

1,114

3,574

2,536
74

2,587
-

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

203
31

(44)

Interest and dividend income
Interest expenses

(177)
288

(251)
147

Decrease (increase) in trade receivables
Decrease (increase) in inventories

1,240
353

(3,421)(2,593)

Increase (decrease) in trade payables
Increase (decrease) in provision for bonuses

36
115

1,982
(71)

Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in retirement benefit liability

315

127

(6)

4

22

(10)

133

(75)

Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for repairs

(90)
7

(122)
7

Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sale of investment securities
Other, net

(0)
55

(311)
37

-

(1,376)

(378)

(98)
914

Subtotal

5,874

1,006

179

252

Interest paid
Income taxes paid

(288)
(1,343)

(147)
(851)

Net cash provided by (used in) operating activities

4,422

260

(2,444)(1,443)

7
(256)

671
(211)

2

99
-

(1,000)
2,500

-

-

(1,396)

Depreciation
Impairment losses

Interest and dividends received

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Proceeds from sale of membership
Payments for long-term deposits paid
Proceeds from long-term deposits
Expenses from derivative transactions
Proceeds from sale of shares of subsidiaries resulting
in change in scope of consolidation
Other, net

-

3,638

(28)

(7)

Net cash provided by (used in) investing activities(1,219)

1,349

―20―

(Millions of yen)
For the fiscal year
ended March 31, 2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

For the fiscal year
ended March 31, 2023
(558)

2,812

Proceeds from long-term borrowings
Repayments of long-term borrowings

(10)

2,632
(7,909)

Repayments of lease liabilities
Purchase of treasury shares

(319)
(406)

(284)
(847)

Dividends paid
Dividends paid to non-controlling interests
Proceeds from share issuance to non-controllingshareholders
Other, net

(981)
(658)

(957)
(528)

-

10

-

0

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(2,934)(5,072)

411

845

680

(2,616)

Cash and cash equivalents at beginning of period

14,654

15,335

Cash and cash equivalents at end of period

15,335

12,718―21―

2.5 Notes to Consolidated Financial Statements(Business Segments)
Fiscal year ended Mar 31, 2022

(Millions of yen)
Adjustment

Reportable Segments
Smart meters &solutions in Japan

Smart meters &solutions overseas

Production

Real estate

Total

Consolidated(Remarks1)

equipment

Sales to Customers

45,98329,095657

448

76,184―76,184

Intersegment Sales

23

972

35

105

1,137

(1,137)―

Total Sales

46,00630,068692

553

77,321(1,137)76,184

Operating Income

1,225

58

△282

271

2,675

4

1,277

(Remarks)
1. The operating income is adjusted by the elimination of the intersegment transaction.
2. For the Smart meters & solutions in Japan Business, an impairment loss of fixed assets of 74 million yen are recognized and booked
as an extraordinary loss.

Fiscal year ended Mar 31, 2023

(Millions of yen)
Adjustment

Reportable Segments
Smart meters &solutions in Japan

Smart meters &solutions overseas

Production

Real estate

Total

Consolidated(Remarks1)

equipment

Sales to Customers

54,406

33,620759

466

89,253―89,253

Intersegment Sales

21

992

1

105

1,121

(1,121)―

Total sales

54,427

34,613761

571

90,374(1,121)

89,253Operating Income

3,816△1,886

9

295

2,234

(7)

2,226

(Remarks)
1. The operating income is adjusted by the elimination of the intersegment transaction.

―22―

(Per Share Information)

Fiscal year ended Mar 31, 2022

Fiscal year ended Mar 31, 2023

Net assets per share¥936.60¥981.44

Basic earnings / loss per share¥(13.42)¥27.86―¥27.41

Diluted earnings per share(Remarks)

1. Diluted earnings per share for previous consolidated fiscal year ended 31 Mar 2022 is not stated due to loss per share although there
are dilutive shares.
2. The followings are basis of calculation of basic earnings/loss per share and diluted earnings per share.
Fiscal year ended Mar 31, 2022
Profit/loss attributable to owners of parent

Fiscal year ended Mar 31, 2023

(658)

1,319

―

―

(658)

1,319

49,04047,374

―

―

―

780

―

―

(millions of yen)Amount non-attributable to common
stockholder (millions of yen)
Profit/loss attributable to owners ofparent for common share (millions ofyen)
Average number of shares during theperiod of common share (thousands ofshares)Profit adjustment attributable to owners ofparent used to calculate the diluted
earnings per share (millions of yen)
Number of increase common share used to
calculate the diluted earnings per share(thousands of shares)

Stock compensation type share acquisitionrightsOverview of dilutive share excluded fromthe calculation of diluted earnings per
share due to non-dilutive effect―23―

*This document is a translation of the original Japanese version and provided for reference purposes only. In the event ofany discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
*Forward-Looking Statements
Forward-looking statements made in this material is based on management’s estimates, assumptions and projections at thetime 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.
About OSAKIOSAKI ELECTRIC is one of the leading smart meter companies in the world. OSAKI Group is focused on designing,developing and manufacturing innovative and technologically advanced energy meters and metering systems for the global
utility industry. The Group's business portfolio includes a comprehensive range of premium quality metering products, energy
management systems and IoT/AI integrated smart services.

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https://www.osaki.co.jp/en/index.html―24―