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 Nine Months Ended December 31, 2022
[Japanese GAAP]
February 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
Yoshihide Watanabe
Director and Managing Executive Officer
Contact:Ryuichi Ueno
Head of Corporate Strategy DivisionPhone: 03-3443-7171
Scheduled date of filing quarterly securities report: February 14, 2023
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (April 1, 2022 to December 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Nine months ended
December 31, 2022
60,642
12.8
1,063
34.4
460
(43.1)
543
December 31, 2021
53,7550.3
790(52.4)
808(54.7)(484)(Note) Comprehensive income:Nine months ended December 31, 2022: ¥3,150 million [773.6%]
Nine months ended December 31, 2021: ¥360 million [(54.1) %]Basic earnings
per share
Nine months ended
December 31, 2022
December 31, 2021

Diluted earnings pershare
Yen

Yen

11.43
(9.88)

11.24-(2) Consolidated Financial Position
Total assets
Million yen
As ofDecember 31, 2022
88,852
March 31, 2022
91,222(Reference) Equity: As of December 31, 2022:
As of March 31, 2022:

Net assets

Capital adequacy ratio

Million yen

¥
¥

―1―

58,55857,611
46,272 million
45,236 million

%

52.1
49.6

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Year-end

TotalYen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2022

-10.00-10.00

20.00

Fiscal year ending March 31, 2023

-10.00

10.00

20.00

Fiscal year ending March 31, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

No

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2023(April 1, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share%

Million yen

Full year
88,000 15.5
1,500
17.4
(Note) Revision to the financial results forecast announced most recently:

Million yen%Million yen

1,100Yes% Million yen(7.5)

1,000%Yen-21.03* Notes:(1) Changes in significant subsidiaries during the nine months ended December 31, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):
No(Company name:NewExclusion:(Company name:(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):December 31, 2022:
49,267,180 shares
March 31, 2022:
49,267,180 shares2) Total number of treasury shares at the end of the period:
December 31, 2022:
2,303,345 shares
March 31, 2022:
968,247 shares
3) Average number of shares during the period:Nine months ended December 31, 2022:
Nine months ended December 31, 2021:

47,551,002 shares
49,100,086 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 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. 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. Business Results

4

1.1 Highlight of Operating Results of Nine Months ended December 31, 2022

4
1.2 Consolidated Financial Condition5

1.3 Statements for Financial Forecasts and Business Outlook

5

2. Consolidated Financial Statements

2.1

Consolidated Balance Sheets66

2.2 Consolidated Statements of Income andConsolidated Statements of Comprehensive Income
2.3 Notes to Consolidated Financial Statements(Notes Regarding Going Concern Assumption)

81010(Notes in the Event of Significant Changes in Shareholders’ Capital) 10(Business Segments)

10―3―

1. Business Results (Nine Months ended December 31, 2022)
1.1 Highlight of Operating Results of Nine Months ended December 31, 2022⚫

⚫
⚫

Consolidated sales increased by 12.8% in the amount of 60.6 billion yen from thecorresponding period in the previous fiscal year. Operating income was 1.06 billion yen, anincrease by 34.4%. Net income attributable to owners of parent was 0.54 billion yen compared
to a loss of 0.48 billion yen in the previous fiscal year, including an extraordinary income for thesale of subsidiaries in Japan and overseas.
In smart meters & solutions in Japan, sales of smart meters and solutions increased and profits
expanded accordingly.
In smart meters & solutions in overseas, while shipments to Oceania showed steady growth,
shipments to UK decreased due to electronic component shortages. All in all, sales decreased inU.S. dollar basis, but increased in Yen due to yen depreciation. Profits decreased due to a hikein material costs, marking an operating loss.
Summary of Consolidated Financial Results for the Nine Months ended December 31, 2022
(Millions of yen)
Nine Months ended

Nine Months ended

December '21

December '22

Net sales

YoY change
Amount%53,75560,642

6,887

12.8%

Smart meters & solutions in Japan

32,24837,517

5,268

16.3%

Smart meters & solutions overseas

21,395

22,699

1,303

6.1%

Production equipment

547

761

214

39.2%

Real estate

415

427

112.8%

Adjustment

(852)

(762)

89－

Operating income

790

1,063

272

34.4%

Smart meters & solutions in Japan

835

2,186

1,351

161.8%

Smart meters & solutions overseas

23(1,343)(1,367)－

Production equipment

(229)

9239－

Real estate

211

218

62.9%

Adjustment

(50)

(7)

43－

Ordinary income

808

460(348)(43.1)%

Profit attributable to owners of parent(484)

543

1,028

－

* "Production equipment" includes accumulated sales and profits of Osaki Engineering Co., Ltd. for the six months
ended September 30, 2022. Osaki Electric has sold all holding shares of Osaki Engineering Co., Ltd. as of
September 30th.

―4―

1.2 Consolidated Financial Condition
Total assets as of December 31, 2022 were 88,852 million yen, a 2,369 million yen decrease fromMarch 31, 2022. This was mainly due to a decrease in cash and deposits, and notes and accounts
receivable by 3,193 million yen and 2,083 million yen respectively, while inventory increased by
4,516 million yen.
Total liabilities were 30,293 million yen, a 3,316 million yen decrease from March 31, 2022. Thiswas mainly due to a decrease in short to long term borrowings and provision for bonuses by 2,882
million yen and 584 million yen respectively.
Net assets were 58,558 million yen, a 947 million yen increase from March 31, 2022. This was
mainly due to an increase in foreign currency translation adjustment by 1,909 million yen while
capital surplus decreased by 405 million yen and treasury shares deducted from equity increased
by 682 million yen.

1.3 Statements for Financial Forecasts and Business Outlook
Changes are made to the financial year ending March 31, 2023 as following. Please refer to “NoticeConcerning Revision of Financial Forecasts for the Fiscal Year ending March 2023” for more details.
Revision of consolidated financial results forecast for the fiscal year 2022
(From April 1, 2022 to March 31, 2023)
Net Sales(Million yen)

Operating Income(Million yen)

Ordinary Income(Million yen)

Net Income
Attributable toOwners of Parent(Million yen)

Net Income
Attributable toOwners of Parent
per Share(Yen)Previous Forecasts (A)80,0001,000

1,100920

19.60

Revised Forecasts (B)88,000

1,500

1,100

1,000

21.03

Change (B-A)

8,000

500

―

80

Rate of Change (%)

+10.0

+50.0

―

+8.7

(Reference) Results of theprevious fiscal year ended
March 31, 2022

76,184

1,277

1,189(658)―5―(13.42)

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

As of December 31,2022

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

11,857
3,546

8,663
4,377

17,436

15,353

6,031

7,872

Work in process
Raw materials and supplies

3,165
6,911

3,321
9,431

Other
Allowance for doubtful accounts

3,234(530)

3,634
(556)

Total current assets

51,65352,098

Buildings and structures, netLand

8,880
12,8308,415
12,099Other, net

6,059

5,321

Total property, plant and equipment

Non-current assets
Property, plant and equipment

27,77025,837

Intangible assets
Investments and other assets

868

726

Investment securities
Retirement benefit asset

5,229
1,525

5,645
1,505

Other
Allowance for doubtful accounts

4,178
(3)

3,042
(3)

Total investments and other assets

10,93010,19039,56836,754

91,222

88,852

Total non-current assets
Total assets―6―

(Million yen)
As of March 31,2022

As of December 31,2022

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

7,324
2,965

6,879
3,506

Short-term borrowings
Income taxes payable

6,926
502

1,147
305

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for product warranties
Other

1,656

1,072

48

41

473
6,604

517
6,568

Total current liabilities

26,502

20,038

-

2,896

4246

21

26

Retirement benefit liability
Deferred tax liabilities

2,479
2,154

2,479
2,400

Other

2,410

2,406

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Provision for repairs

Total non-current liabilities

7,108

10,25533,61030,293

Share capital
Capital surplus

7,965
8,750

7,965
8,750

Retained earnings
Treasury shares

25,670(487)

25,265(1,169)Total shareholders' equity

41,90040,812

1,119

1,410

1,667
549

3,577
471

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

3,3365,459

Share acquisition rights
Non-controlling interests

Total accumulated other comprehensive income

509
11,865466
11,819Total net assets

57,611

58,55891,222

88,852

Total liabilities and net assets―7―2.2 Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income (For the nine months)(Million yen)
For the nine months
ended December 31,2021

For the nine months
ended December 31,2022

Net sales
Cost of sales

53,75541,78760,64248,045Gross profit

11,967

12,597

Selling, general and administrative expenses

11,177

11,534790

1,063

Operating profit
Non-operating income
Interest income

1615

Dividend income
Subsidy income

151
189

193
39

Other

9385

Total non-operating income

450

334

227
148

100
796

Non-operating expenses
Interest expenses
Foreign exchange losses
Other

56

40

Total non-operating expenses

432

937

808

460

Ordinary profit
Extraordinary income
Gain on sale of non-current assets-

319

Gain on sale of shares of subsidiaries and associates

-

1,907

Total extraordinary income-

2,226-

580

-

580

Profit before income taxes

808

2,106

Income taxes – current

536

816

Income taxes – deferred

288

262

Total income taxes

825

1,079

Profit (loss)

(17)

1,027

Profit attributable to non-controlling interests

467

483

Profit (loss) attributable to owners of parent(484)543

Extraordinary losses
Loss on sale of shares of subsidiaries and associates
Total extraordinary losses―8―Consolidated Statements of Comprehensive Income (For the nine months)(Million yen)
For the nine months
ended December 31,2021
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

For the nine months
ended December 31,2022
(17)

1,027

(44)
484

291
1,909

Remeasurements of defined benefit plans, net of tax

(62)

(77)

Total other comprehensive income

377

2,123

Comprehensive income

360

3,150

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

(106)

2,666

467

483

―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 31 Dec 2021
1. Sales, Profits or Losses by Reporting Segments(Millions of yen)
Reporting Segments
Adjustment

Consolidated

Smart meters &solutions in Japan

Smart meters &solutions overseas

Production

Sales to Customers

32,23020,668519

336

53,755―53,755Intersegment Sales

17727

27

79

852(852)―

32,24821,395415

415

54,607(852)53,755835

23(229)211

841(50)790

Total Sales
Operating Incomeequipment

Real estate

Total(Remark)(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 Dec 2022
1. Sales, Profits or Losses by Reporting Segments(Millions of yen)
Reporting Segments
Adjustment

Consolidated

Smart meters &solutions in Japan

Smart meters &solutions overseas

Production

Sales to Customers

37,50022,034759

348

60,642―60,642

Intersegment Sales

16665

179762(762)―

Total Sales

37,517

22,699761

427

61,405(762)

60,642

Operating Income2,186(1,343)

9218

1,070(7)1,063

equipment

Real estate

Total(Remark)(Remark) The operating income is adjusted by the elimination of the intersegment transactions.
2.Changes in Reporting Segments
We have sold all stocks of Osaki Engineering Co., Ltd. on 30 Sep 2022, which had been classified into the “Production equipment”
of the Reporting Segments. The company have excluded from the scope of consolidation from this report. In accordance with theaforementioned reason, “Production equipment” in this report, includes the business performances for only the six months ended
30 Sep 2022.
3. Impairment loss of Fixed Asset and Goodwill by Reporting Segments
There are no applicable matters.

―10―