August 5, 2020

Osaki Electric Co., Ltd.
Tokyo Stock Exchange 1st Section
Securities code: 6644

FY2020 First Quarter
Summary of Consolidated Financial Results(Three Months ended June 2020)⚫ Consolidated sales were down by 4.6% year on year to ¥19.3 billion. Operating income
declined by 42.2% to ¥0.7 billion.Net loss attributable to owners of parent were ¥0.3 billion
in contrast to ¥0.5 billion in profit in the previous first quarter.
⚫ Both sales and profits decreased in Japan due to postponement of orders caused by the spreadof COVID-19 virus.
⚫ Overseas sales decreased due to postponement of orders caused by the spread of COVID19 virus, particularly in New Zealand, in addition to drop in revenue from Iraq (KurdistanRegional Government) and Cambodia projects which recorded a temporary increase inorders in the same period of the previous fiscal year. Overseas profits dropped due to adecrease in sales and lower profit margin from product mix.

1. Consolidated Financial Results(Millions of yen)
YoY Change

FY2019 1Q FY2020 1Q

FY2020 1H
Revised
Forecast

FY2020Full-year
Forecast

Amount%(940)(4.6)%

36,00080,00020,287

19,347

Smart meters & solutions in Japan

11,31011,097(213)(1.9)%

22,30048,200Smart meters & solutions overseas

8,948

7,816

(1,131)(12.6)%

12,70030,000

287

585

298

+103.8%

1,000

1,800

(258)

(151)

107

－－－

4,467
23.1%
3,797
19.6%
669
3.5%
557

(604)

Smart meters & solutions in Japan

5,072
25.0%
3,913
19.3%
1,159
5.7%
608

(50)

(11.9)%(1.9)pt(3.0)%
0.3pt(42.2)%(2.2)pt(8.4)%

7,800
21.7%
7,600
21.1%
200
0.6%
30017,100
21.4%
15,600
19.5%
1,500
1.9%
1,300

Smart meters & solutions overseas

519

22(497)(95.7)%(200)

0Others

4186

45+110.8%100200Adjustment

(10)

313－

－－

Ordinary income

1,069

282(786)(73.6)%

200

1,600

528(284)

(812)

－

(600)

100

10.80

(5.81)(16.61)－(12.26)

2.04

Net sales

OthersAdjustment

Gross profit
Ratio to sales

SG & A expenses
Ratio to sales

Operating income
Ratio to sales

Profit attributable to owners of parent

Net income per share（yen）

(115)
(489)

Estimated impact from the COVID-19 epidemic（Included in the table above of Fiscal 2020 Forecasts）(1,300)(5,500)(12,000)

Smart meters & solutions in Japan(600)(1,200)(2,000)Net sales
Smart meters & solutions overseas(700)(4,300)(10,000)

Operating income(250)(1,000)(2,700)Smart meters & solutions in Japan

(150)

(300)

(700)

Smart meters & solutions overseas

(100)

(700)

(2,000)1

2. Consolidated Sales by Region (Excluding intercompany sales)(Millions of yen)
YoY Change

FY2020 1H
RevisedForecast

FY2020Full-year
Forecast+1.0%

23,30050,000(1,056)(12.1)%

12,70030,0002,211(338)(13.3)%

4,100

8,500

2,229

2,375

145

+6.5%

4,200

10,5002,019

1,336(683)(33.8)%

2,300

6,500

1,961

1,780(180)(9.2)%

2,100

4,500

20,287

19,347(940)(4.6)%

36,00080,000FY2019 1Q

FY2020 1Q

11,526

11,643

116

8,760

7,703

2,549Japan
Overseas
Oceania
EuropeAsia
Middle Eastand others

Total
Averageexchange rate

Amount%¥110.20¥108.86¥108.23/USD/USD/USD(Exchange rate assumption)*The figures above are calculated based on customer locations and may not match the figures on Table 1.
Consolidated Financial Results.

3. Sales by product and service (Excluding intercompany sales)（1）Smart meters & solutions in Japan(Millions of yen)
YoY Change

FY2019 1Q

FY2020 1Q

6,010

5,232(778)(12.9)%

576

1,199

623

+108.2%

Switchgears

1,131

1,529

398

+35.2%

VCTs

1,209

1,124(85)(7.0)%

2,376

2,006(370)(15.6)%

11,304

11,091(213)(1.9)%

MetersMonitor Control

Others(including adjustments)

Total

Amount%*Referential figures based on managerial accounting（2）Smart meters & solutions overseas(Millions of yen)
YoY Change

FY2019 1Q

FY2020 1QMeters

5,609

5,325(284)(5.1)%

Monitor Control

3,125

2,370(755)(24.2)%

Total

8,734

7,695(1,039)(11.9)%

Amount%*Referential figures based on managerial accounting

4. R&D expenditures, Depreciation, Capital expenditures(Millions of yen)
YoY Change

FY2020Full-yearForecast

FY2019 1Q

FY2020 1Q

R&D expenditures

74878738+5.1%

3,200

Depreciation

668665(3)(0.5)%

2,700

Capital expenditures

421220(201)(47.8)%

2,8002Amount%5. FY2020 Consolidated Forecast
The Company revised its financial forecast for the six months ending September 30, 2020 for thefollowing reasons.
⚫ The Company expects that the impact on business performance of the Group from the COVID19 epidemic will be carried over partially into the latter half of the fiscal year.
⚫ Cost reduction efforts will show a decrease in SG&A expenses.
There are no revisions made to the full-year financial forecast ending March 31, 2021.
(Millions of yen)First HalfFY2019

Results

Net sales
Operatingincome
Ordinary
incomeProfit attributableto owners ofparent

FY2020InitialForecast(A)Full-year

FY2020
Revised
Forecast(B)Difference(B-A)

FY2019FY2020

AmountResults

Forecast

1,000 +2.9%

43,58035,00036,0002,033(500)

200

700

1,946(700)200845(1.200)

(600)

%

YoY

90,06980,000 (10,069)

－

3,691

1,500(2,191)

900

－

3,544

1,600(1,944)

600

－

1,197

100(1,097)⚫ 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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