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 Three Months Ended June 30, 2023
[Japanese GAAP]
August 1, 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 filing quarterly securities report: August 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 Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet salesOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended
June 30, 2023
21,367
10.3
1,169
116.3
1,380
152.0
768
(63.7)
June 30, 2022
19,377
9.4
540
18.7
547
(4.2)
2,116(Note) Comprehensive income:Three months ended June 30, 2023:¥
939 million [(62.4) %]Three months ended June 30, 2022:¥
2,496 million [174.7%]
Basic earnings
per share
Three months ended
June 30, 2023
June 30, 2022

Diluted earnings pershare
YenYen16.43
44.22

16.17
43.46

(2) Consolidated Financial Position
Total assets
As ofJune 30, 2023
March 31, 2023
(Reference) Equity:

Millions of yen

Net assets

91,496
93,268
As of June 30, 2023:
As of March 31, 2023:

Capital adequacy ratio

Millions of yen

¥
¥

―1―

58,484
58,62946,214 million
45,933 million

%

50.5
49.2

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

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 1st 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
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper shareparent
Millions of yen% Millions of yen% Millions of yen

Six months ending
43,0008.7
1,800 236.2
September 30, 2023
Full year
90,000
0.8
3,600
61.7
(Note) Revision to the financial results forecast announced most recently:% Millions of yen%Yen

1,900

445.4

1,000(4.0)

21.37

3,400
Yes

80.4

1,600

21.2

34.19

* Notes:(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name:(Company name:
Exclusion:-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):
June 30, 2023:
49,267,180 shares
March 31, 2023:
49,267,180 shares
2) Number of treasury shares at the end of the period:
June 30, 2023:
2,464,755 shares
March 31, 2023:
2,464,755 shares
3) Average number of shares outstanding during the period:
Three months ended June 30, 2023:
Three months ended June 30, 2022:

46,802,425 shares
47,861,351 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. Business Results

4

1.1 Highlight of Operating Results of Three Months ended June 30, 2023 4
1.2 Consolidated Financial Condition5

1.3 Statements for Financial Forecasts and Business Outlook

5
2. Consolidated Financial Statements2.1Consolidated Balance Sheets66

2.2 Consolidated Statements of Income andConsolidated Statements of Comprehensive Income

82.3 Notes to Consolidated Financial Statements

10(Notes Regarding Going Concern Assumption)

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

10―3―

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

⚫

⚫

Consolidated sales were increased by 10.3% year on year to 21.4 billion yen. Operating
income were increased by 116.3% to 1.2 billion yen. Net income attributable to ownersof parent were decreased by 63.7% to 0.8 billion yen.
Net sales for Smart meters & solutions in Japan increased slightly year on year withhigher sales in the Smart Meter Business. Operating income increased with temporarychanges in product mix, etc.
For Smart meters & solutions overseas, both net sales and operating income increased
year on year, including an increase in shipments to UK enabled by an upturn in theelectronic materials procurement environment and an increase in shipments to Oceania.
Summary of Consolidated Financial Results for the Three Months ended June 30, 2023
(Millions of yen)Three M onths Three M onths
ended June '22 ended June '23
N et sales

Y oY change
A m ount%

19,377

21,367

1,989

10.3%

S m art m eters & solutions in Japan

11,842

11,975132

1.1%

S m art m eters & solutions overseas

7,202

9,581

2,379

33.0%

P roduction equipm ent

301－

(301)

－

R ealestate

139

143

4

3.1%

A djustm ent

(107)

(334)

(226)

－O perating incom e540

1,169628

116.3%

S m art m eters & solutions in Japan6271,046419

66.9%

S m art m eters & solutions overseas

(159)

55

214－

P roduction equipm ent

5－

(5)

－R ealestate

68

74

58.1%

A djustm ent

(1)

(6)

(5)

－

O rdinary incom e547

1,380832

152.0%

2,116768(1,347)(63.7)%

P rofit attributable to ow ners of parent―4―

1.2 Consolidated Financial Condition
Total assets at June 30, 2023 were 91,496 million yen, a 1,771 million yen decrease fromMarch 31, 2023. This was mainly due to a decrease in notes and accounts receivable -tradeand contract
assets by 5,742 million, while inventory increased by 3,208 million yen.
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 short to long term borrowings at overseas subsidiaries by
998 million yen and 820 million yen respectively, while other current liabilities
increased by 350 million yen.
Net assets were 58,484 million yen, a 145 million yen decrease from March 31, 2023. Thiswas mainly due to a decrease in foreign currency translation adjustment and noncontrolling interests by 506 million yen and 425 million yen respectively, while valuationdifference on available-for-sale securities and retained earnings increased by 508
million yen and 300 million yen respectively.

1.3 Statements for Financial Forecasts and Business Outlook
The Company revised the forecast for the six months ending September 30, 2023 and full-year for
the fiscal year ending March 31, 2024, previously announced on May 11, 2023. Please refer to“Notice Concerning Revision of Financial Forecasts for the Fiscal Year ending March 2024” formore details.

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

As of June 30, 2023

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

9,171
4,611

8,572
4,982

20,495

14,753

7,775

9,126

Work in process
Raw materials and supplies

2,673
8,626

3,109
10,048OtherAllowance for doubtful accounts

3,778(514)

4,217(518)

Total current assets

56,61854,292

Buildings and structures, net
Land

8,339
12,0908,224
12,099Other, net

5,072

4,970

Total property, plant and equipment

Non-current assets
Property, plant and equipment

25,502

25,295Intangible assets
Investments and other assets

735

691

Investment securities
Retirement benefit asset

5,660
1,571

6,351
1,568

Other
Allowance for doubtful accounts

3,183
(3)

3,299
(3)

Total investments and other assets

10,412

11,21636,64937,203

93,26891,496

Total non-current assets
Total assets―6―(Millions of yen)
As of March 31, 2023

As of June 30, 2023

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

8,172
3,799

7,237
3,735

Short-term borrowings
Income taxes payable

2,864
904

2,028
378

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

1,581

39

20

14-576

550

Other

7,092

7,443

Total current liabilities

25,00822,976Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Provision for repairs
Retirement benefit liability

2,642

2,658

47

48

28
2,404

29
2,392

Deferred tax liabilities
Other2,209
2,298

2,359
2,547

Non-current liabilities

Total non-current liabilities

9,630

10,03534,63833,012

Shareholders' equity
Share capital

7,965

7,965

Capital surplus
Retained earnings

8,759
26,033

8,759
26,334

Total liabilities
Net assets

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

Total shareholders' equity

41,50341,804

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

1,423

1,931

2,510

2,004

Remeasurements of defined benefit plans

496

473

4,430

4,409

Share acquisition rights

Total accumulated other comprehensive income

466

466

Non-controlling interests

12,22811,803

Total net assets

58,62958,484

93,26891,496

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

For the three months
ended June 30, 2023

Net sales
Cost of sales

19,377
15,074Gross profit

4,303

5,011

Selling, general and administrative expenses

3,762

3,842

540

1,169

Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains

21,367
16,35556122-

190
42

Other

61

55

Total non-operating income

189

294

49
115

73-

Other

16

10

Total non-operating expenses

182

83

547

1,380

Non-operating expenses
Interest expenses
Foreign exchange losses

Ordinary profit
Extraordinary incomeGain on sale of non-current assets

289-

Gain on sale of shares of subsidiaries and associates

1,730

-

Total extraordinary income

2,019

--15-

15

Extraordinary losses
Loss on sale of shares of subsidiaries and associates
Total extraordinary losses
Profit before income taxes

2,567

1,365

Income taxes - current

201

382

Income taxes - deferred

93

22

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent―8―294

404

2,272

960

156

191

2,116768

Consolidated Statements of Comprehensive Income (For the three months)(Millions of yen)
For the three months
ended June 30, 2022
ProfitOther comprehensive income

For the three months
ended June 30, 2023
2,272

960

151
99508
(506)

Remeasurements of defined benefit plans, net of tax

(25)

(22)

Total other comprehensive income

224

(20)

Comprehensive income

2,496

939

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

2,340

748

156

191

Valuation difference on available-for-sale securities
Foreign currency translation adjustment―9―

2.3Notes 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 Jun 2022
1. Sales, Profits or Losses by Reporting Segments(Millions of yen)
Adjustment

Reporting Segments
Smart meters &solutions in Japan

Smart meters &solutions overseas

Production

Real estate

Consolidated(Remark)Totalequipment

Sales to Customers

11,837

7,127300

113

19,377―

19,377

Intersegment Sales

574

026107(107)―

11,842

7,202

301

139

19,485(107)

19,377627(159)568541(1)

540

Total Sales
Operating Income(Remark) The operating income is adjusted by the elimination of the intersegment transaction.

2. Impairment loss of Fixed Asset and Goodwill by Reporting Segments
There are no applicable matters.

II

Fiscal year ended 30 Jun 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

11,9709,279

117

21,367―21,367Intersegment Sales

5302

26334(334)―

Total Sales

11,9759,581

143

21,701(334)21,367

Operating Income

1,046

55

74

1,176(6)1,169

Total(Remark) The operating income is adjusted by the elimination of the intersegment transaction.

―10―

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.

―11―