May 12, 2022

Osaki Electric Co., Ltd.
Tokyo Stock Exchange Prime Market
Securities code: 6644

Summary of FY2021 Consolidated Financial Results(12 Months ended March 2022)⚫

⚫

⚫

Consolidated sales were decreased by 0.1% year on year to ¥76.2 Billion. Operating
income declined by 52.4% to ¥1.28 Billion. Net loss attributable to owners of parent
were ¥0.66 billion in contrast to ¥0.48 Billion in profit in the previous fiscal year.
In Japan, sales of smart meters decreased, in addition to lower sales of smart locks forrental property which recorded good shipments in the previous fiscal year. Profits
decreased year on year, due to sales decrease as well as lower profitability caused by arise in raw material prices.
In the overseas, shipments to Oceania and UK increased compared to the previous fiscal
year where shipments were restricted from the spread of COVID-19. Sales for Iraq
(Kurdistan Regional Government), which pushed up the sales in the previous year
declined with its demand subsided. All in all, sales and profits increased year on year.

1. Consolidated Financial Results
FY2020Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
Production equipment
Real estate
Adjustment

Gross profit
Ratio to sales
SG & A expenses
Ratio to sales

FY2021

76,25548,19327,301
960
553
(753)
17,342

76,18446,00630,068692
553(1,137)
16,375

22.7%

21.5%

14,657

15,097

19.2%

19.8%

(Millions of yen)
YoY Change
Amount%(71)(2,186)2,766(268)
0(384)(967)(0.1)%(4.5)%+10.1%(27.9)%+0.1%－(5.6)%(1.2)pt

440+3.0%＋0.6pt

2,684

1,277

Ratio to sales

3.5%

1.7%

Smart meters & solutions in Japan

3,136(467)
(264)
270
92,8881,225
58(282)2714
1,189(1,910)
525(17)0(5)(1,698)(60.9)%－－+0.2%(54.6)%(58.8)%

Profit attributable to owners of parent

482

(658)

(1,140)－Net income per share（yen）

9.84(13.42)(23.26)

－ROE

1.0%

(1.4)%―(2.4)pt

Operating income

Smart meters & solutions overseas
Production equipment
Real estate
Adjustment

Ordinary income(1,407)(52.4)%(1.8)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. Revenue by Business Portfolio (Excluding intercompany sales)（1）Smart meters & solutions in Japan
FY2018FY2019FY2020YoY Change

FY2021

Amount%FY2022
Forecast(Millions of yen))
Full-year Forecast
YoY Change
Amount%Smart meterbusiness

41,27435,88632,01629,425(2,590)(8.1)%

32,000

2,574

+8.7%

Solution
Business

9,408

10,006

10,51010,531

20+0.2%

11,500968+9.2%

Switchgear
Business

5,568

5,9265,641

6,025383+6.8%

6,500474

+7.9%

Total

56,251

51,81948,16945,983(2,185)(4.5)%

50,000

4,016

+8.7%

*Referential figures based on managerial accounting.

Smart meter business: Sale of smart meters and measurement and control equipment
including smart meter peripheral devices for power companies.
Solution business: Provide services and products and deliver solutions to customers (otherthan power companies)
Switchgear business: Sale of switchgears（2）Smart meters & solutions overseas
FY2018FY2019FY2020YoY Change

FY2021

Amount%FY2022
Forecast(Millions of yen)
Full-year Forecast
YoY Change
Amount%Oceania

9,522

9,422

9,154

10,642

1,487+16.3%

12,0001,357+12.8%

Europe

4,422

9,544

8,938

11,3392,401+26.9%

10,000(1,339)(11.8)%

Asia

6,713

8,753

4,882

6,041

1,158+23.7%

4,200(1,841)(30.5)%

Middle Eastand others

3,295

8,770

3,703

1,071

(2,631)(71.1)%

1,800

728+67.9%

Total

23,95236,49026,67829,0952,416+9.1%

28,000(1,095)(3.8)%

Average
Exchange rate

¥110.43/USD¥109.05/USD¥106.76/USD¥109.90/USD¥116.34/USD（assumption）*Calculations are based on the annual securities report.

3. R&D expenditures, Depreciation, Capital expenditure

FY2020

FY2021YoY Change
Amount%FY2022
Forecast(Millions of yen)
Full-year Forecast
YoY Change
Amount%R&D expenditures

2,900

3,043

143+5.0%

3,300

256+8.4%

Depreciation

2,749

2,536(213)(7.8)%

2,500(36)(1.4)%

Capital expenditures

2,012

2,794781+38.8%

2,600(194)(6.9)%

24. FY2022 Consolidated Forecast(Millions of yen)

1H

Full-year

YoY Change

YoY Change

FY2021

FY2022
Forecast

Amount%FY2021

36,08739,000

2,912

+8.1%

76,18480,000

3,815

+5.0%

21,40523,500

2,094

+9.8%

46,00650,000

3,993

+8.7%

14,613

14,900286+2.0%30,06829,000(1,068)(3.6)%

614

1,050

435

+70.8%

1,246

2,100

853

+68.5%

(546)

(450)

96－

(1,137)(1,100)37－

Operating income

461

(200)

(661)

－

1,277

1,000(277)(21.7)%

Smart meters &solutions in Japan

366100(266)(72.7)%

1,225

1,500274+22.4%

Smart meters &solutions overseas

118(400)(518)－

58(700)(758)－

Others(23)

100123－

(11)

200

211－

Adjustment

(0)

－0－

4－

(4)

(100.0)%Ordinary income

531(150)

(681)

－

1,189

1,100(89)(7.5)%

Profit attributable toowners of parent

(236)

1,300

1,536－

(658)

1,500

2,158－Net sales
Smart meters &solutions in Japan
Smart meters &solutions overseas
OthersAdjustment⚫

FY2022
Forecast

Amount%Sales of Smart meters & solutions in Japan are expected to increase due to a recovery insmart meter sales, which were negatively impacted from a worldwide shortage of electroniccomponents, and an increase in sales of energy management system and services, whichwere affected by the spread of COVID-19 virus. Profits are expected to increase, although
limited in amount. This is due to an anticipated raise in material costs, including non-ironmetals, despite an expected increase in sales.

⚫

As for Smart meters & solutions overseas, Oceania is expected to show steady growth.
However, overall sales are expected to decrease due mainly to a decrease in shipments toU.K. from difficulty to procure electronic components. Profits are expected to decline fromsales decrease and anticipated raise in material costs and shipping expenses.

⚫

Profit attributable to owners of parent include extra gain from sale of overseas subsidiary.

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5.

FY2022-2026 Mid-term Management Plan
(Millions of yen)

FY2022
Forecast

FY2023
Outlook

FY2024
OutlookNet sales

80,00083,00085,000Japan (**)

52,00052,00052,500Overseas

28,00031,00032,500Operating income

1,000

2,800

4,000

Japan (**)

1,700

2,400

2,400

Overseas
Ordinary income

(700)

400

1,600

1,100

2,900

4,100

Profit attributable toowners of parent

1,500

1,600

2,600

ROE

3.5%

3.5%

5.5%

FY2026
Mid-term Target

8.0% (or higher)* Break down of Net Sales are external sales.
** Japan includes “Smart meters & solutions in Japan” and “Others”.

6.
⚫

Shareholder Return
The Company sets basic policy to carry out the continual distribution of a steady dividend toshareholders, while providing additional performance-based dividends.

⚫

The basic policy states that the amount distributed will be based on higher of either a dividend
payout ratio of 30% or 2% of DOE (dividend on equity).

⚫

The year-end dividend outlook for the current year is 10 yen per share, and annual dividends of20 yen.

⚫

For the next fiscal year, the Company plans to pay an interim dividend of 10 yen per share and10 yen of year-end dividend, resulting in annual dividends of 20 yen, the same as the currentyear.
Dividend per share
InterimYear-end

AnnualTotal amount ofdividends

Consolidated
payout ratio

FY202010 yen

10 yen20 yen980 million yen

203.3%FY2021

10 yen

10 yen20 yen974 million yen－FY2022 Forecast

10 yen

10 yen20 yen62.6%⚫ 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).

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