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 Six Months Ended September 30, 2023
[Japanese GAAP]
November 7, 2023
Company name: Osaki Electric Co., Ltd.
Stock exchange listing: Tokyo
Code number: 6644
URL: https://www.osaki.co.jp
Representative: Chairman and CEO
Director and Managing Executive Officer
Contact:
Head of Corporate Strategy Division

Yoshihide Watanabe
Ryuichi UenoPhone: +81-3-3443-7171
Scheduled date of filing quarterly securities report: November 14, 2023
Scheduled date of commencing dividend payments: December 5, 2023
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended
September 30, 2023
44,174
11.7
2,325
334.4
2,415
593.5
1,356
30.2
September 30, 2022
39,562
9.6
535
16.0
348
(34.4)
1,041(Note) Comprehensive income:Six months ended September 30, 2023:¥2,690 million [31.1%]
Six months ended September 30, 2022:¥2,051 million [188.9%]
Basic earnings
per share
Six months ended
September 30, 2023
September 30, 2022

Diluted earnings pershareYen

Yen

28.97
21.83

28.51
21.47

(2) Consolidated Financial Position
Total assets
Millions of yen
As ofSeptember 30, 2023
93,307
March 31, 2023
93,268(Reference) Equity: As of September 30, 2023:
As of March 31, 2023:

Net assets

Capital adequacy ratio

Millions of yen¥¥―1―60,295
58,62947,894 million
45,933 million

%

51.3
49.2

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

YenYenYen

Yen

Fiscal year ended March 31, 2023

-

10.00

-

10.00

20.00

Fiscal year ending March 31, 2024

-

10.00
-

10.00

20.00

Fiscal year ending March 31, 2024
(Forecast)Year-endTotal(Note) Revision to the forecast for dividends announced most recently:
No(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending March 31, 2024 :Commemorative dividend- yenSpecial dividend- yen
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
Millions of yen% Millions of yen% Millions of yen

Full year
93,500
4.8
4,300
93.1
(Note) Revision to the financial results forecast announced most recently:

4,200
Yes

* Notes:(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):(Company name:
NewExclusion:(Company name:% Millions of yen

122.8

1,900%Yen

44.0

40.57

No

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:))
No(3) 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(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
September 30, 2023:
49,267,180 shares
March 31, 2023:
49,267,180 shares
2) Number of treasury shares at the end of the period:
September 30, 2023:
2,353,382 shares
March 31, 2023:
2,464,755 shares
3) Average number of shares outstanding during the period:
Six months ended September 30, 2023:
Six months ended September 30, 2022:

46,838,332 shares
47,728,621 shares*Quarterly 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 descriptions 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. The actual performance may significantly vary due to the various factors. Regarding
business forecasts, please refer to the page 5 “1.3 Statements for Financial Forecasts and Business Outlook”.

―2―

[APPENDIX]
1.

2.

Business Results
1.1
Highlight of Operating Results of Six Months ended
September 30,2023
1.2
Consolidated Financial Condition
1.3
Statements for Financial Forecasts and BusinessOutlook
Consolidated Financial Statements
2.1
Consolidated Balance Sheets2.2
Consolidated Statements of Income andConsolidated Statements of Comprehensive Income
2.3
Notes to Consolidated Financial Statements(Notes Regarding Going Concern Assumption)(Notes in the Event of Significant Changes inShareholders’Capital)(Business Segments)―3―445566810101010

1. Business Results (Six Months ended September 30, 2023)
1.1 Highlight of Operating Results of Six Months ended September 30, 2023⚫
⚫

⚫

Consolidated net sales: 44.2 billion yen (YoY +11.7%), Operating income: 2.3 billion
yen (+334.4%), Profit attributable to owners of parent: 1.4 billion yen (+30.2%)
Net sales for Smart meters & solutions in Japan increased year on year with higher
sales in the Smart Meter Business. Operating income increased with temporary changes
in the product mix, etc.
For Smart meters & solutions overseas, sales increased year on year with an increasein shipments to UK enabled by an upturn in the electronic materials procurement
environment and an increase in shipments to Oceania. Operating income increased withthe higher sales and stabilization of electronic materials prices, which had soared
during the procurement squeeze.
Summary of Consolidated Financial Results for the Six Months ended September 30,2023(Millions of yen)

Six Months
Six Months
ended
ended
September '22 September '23Net sales

YoY change
Amount%39,562

44,174

4,612

11.7%

Smart meters & solutions in Japan

24,27625,022745

3.1%

Smart meters & solutions overseas

14,647

19,559

4,912

33.5%

Production equipment

761

－

(761)

－

Real estate

282

287

5

1.8%

Adjustment

(405)

(695)

(289)

－

Operating income

535

2,325

1,790

334.4%

Smart meters & solutions in Japan

1,163

1,903

739

63.6%

Smart meters & solutions overseas

(777)

276

1,053－

9－(9)－

Real estate

141

157

16

11.5%

Adjustment

(1)

(10)

(9)

－

Ordinary income

348

2,415

2,067

593.5%

1,041

1,356

315

30.2%

Production equipment

Profit attributable to owners ofparent―4―

1.2 Consolidated Financial Condition
Total assets at September 30, 2023 were 93,307 million yen, a 39 million yen increase
from March 31, 2023. This was mainly due to a increase in inventory and investment
securities by 5,040 million yen and 1,233 million yen respectively, while cash anddeposits, and notes and accounts receivable decreased by 2,699 million and 3,348 million
yen respectively.
Total liabilities were 33,012 million yen, a 1,626 million yen decrease from March 31,2023. This was mainly due to a decrease in notes and accounts payable – trade andelectronically recorded obligations – operating and deferred tax liabilities by 1,384
million yen and 383 million yen respectively.
Net assets were 60,295 million yen, a 1,665 million yen increase from March 31, 2023.
This was mainly due to a increase retained earnings and va luation difference on availablefor-sale securities by 888 million yen and 894 million yen respectively.

1.3 Statements for Financial Forecasts and Business Outlook
The Company revised the forecast for t full-year for the fiscal year ending March 31, 2024,
previously announced on August 1, 2023. Please refer to “Notice Concerning Difference between
First Half Forecasts and Actual Financial Results, and Revision of Full Year Financial Results
Forecasts” for more details.

―5―2 Consolidated Financial Statements
2.1 Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

As of September 30, 2023

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

9,171
4,611

6,471
3,342

20,495

17,147

7,775

10,006Work in process
Raw materials and supplies

2,673
8,626

3,277
10,833

Other
Allowance for doubtful accounts

3,778
(514)

3,936
(475)

Total current assets

56,61854,538

Buildings and structures, net
Land

8,339
12,0908,188
12,099Other, net

5,072

5,008

Total property, plant and equipment

Non-current assets
Property, plant and equipment

25,502

25,297

Intangible assets
Investments and other assets

735

682

Investment securities
Retirement benefit asset

5,660
1,571

6,894
1,566

Other
Allowance for doubtful accounts

3,183
(3)

4,331
(3)

Total investments and other assets

10,412

12,78836,64938,76993,26893,307

Total non-current assets
Total assets―6―

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

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

8,172
3,799

7,332
3,255

Short-term borrowings
Income taxes payable

2,864
904

2,394
520

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

1,543

1,537

39

53

14-576

441

Other

7,092

7,055

Total current liabilities

25,00822,590Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Provision for repairs
Retirement benefit liability

2,642

2,886

47

50

28
2,404

312,406

Deferred tax liabilities
Other

2,209
2,298

2,591
2,455

Non-current liabilities

Total non-current liabilities

9,630

10,421

34,63833,012

Shareholders' equity
Share capital

7,965

7,965

Capital surplus
Retained earnings

8,759
26,033

8,762
26,922

Total liabilities
Net assets

Treasury shares(1,254)(1,198)

Total shareholders' equity

41,50342,452

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

1,423

2,317

2,510

2,673

Remeasurements of defined benefit plans

496

450

4,430

5,442

Share acquisition rights

Total accumulated other comprehensive income

466

466

Non-controlling interests

12,228

11,933

Total net assets

58,62960,29593,26893,307

Total liabilities and net assets―7―2.2 Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income (For the six months)(Millions of yen)
For the six months
ended September 30, 2022

For the six months
ended September 30, 2023

Net sales
Cost of sales

39,56231,31844,17433,952Gross profit

8,244

10,222

Selling, general and administrative expenses

7,708

7,896

535

2,325

Operating profit
Non-operating income
Interest income

1020

Dividend income
Other

129
86

195
87

Total non-operating income

226

303

Non-operating expenses
Interest expenses

75

92

Foreign exchange losses
Other

308
2988
31

Total non-operating expenses

413

213

348

2,415

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

306
1,830

-

Total extraordinary income

2,137-580

15

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sale of shares of subsidiaries and associates

580

15

Profit before income taxes

Total extraordinary losses

1,905

2,400

Income taxes - current
Income taxes - deferred469
10368635

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

―8―

572

721

1,332

1,678

290

321

1,041

1,356

Consolidated Statements of Comprehensive Income (For the six months)(Millions of yen)
For the six months
ended September 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

For the six months
ended September 30, 2023

1,332

1,678

(24)
794894162

Remeasurements of defined benefit plans, net of tax

(51)

(45)

Total other comprehensive income

718

1,011

Comprehensive income

2,051

2,690

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

1,760

2,368

290

321

―9―

2.3

Notes to Consolidated Financial Statements(Notes Regarding Going Concern Assumption)
There are no applicable matters.
(Notes in the Event of Significant Changes in Shareholders’ Capital)
There are no applicable matters.

(Business Segments)
I

Fiscal year ended 30 Sep 2022
1. Sales, Profits or Losses by Reporting Segments(Millions of yen)
Adjustment

Reporting Segments
Smart meters &solutions in Japan

Smart meters &solutions overseas

ProductionReal estate

Consolidated(Remark)Totalequipment

Sales to Customers

24,265

14,307759

229

39,562―

39,562

Intersegment Sales

11339

152

405(405)―

Total Sales

24,276

14,647761

282

39,968(405)

39,562

Operating Income

1,163(777)9141

537(1)

535(Remark) The operating income is adjusted by the elimination of the intersegment transactions.
2. Impairment loss of Fixed Asset and Goodwill by Reporting Segments
There are no applicable matters.

II

Fiscal year ended 30 Sep 2023
1. Sales, Profits or Losses by Reporting Segments(Millions of yen)
Adjustment

Reporting Segments

Consolidated(Remark)
Smart meters &solutions in Japan

Smart meters &solutions overseas

Real estate

Sales to Customers

25,012

18,927

235

44,174―

44,174

Intersegment Sales

10632

52

695(695)―Total Sales

25,022

19,559287

44,870(695)

44,174

Operating Income

1,903

276

1572,336

(10)

2,325

Total(Remark) The operating income is adjusted by the elimination of the intersegment transactions.
2.Changes in Reporting Segments
We have sold Osaki Engineering Co., Ltd. on 30 Sep 2022 that had been classified into the “Production equipment” of the Reporting
Segments in the previous fiscal year and have excluded from the scope of consolidation.
As a result, we have discontinued the “Production equipment” from the fiscal year ended 30 Jun 2023.
3. Impairment loss of Fixed Asset and Goodwill by Reporting Segments
There are no applicable matters.

―10―