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, 2022
[Japanese GAAP]
November 8, 2022
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 OfficerContact:Ryuichi Ueno
Head of Corporate Strategy DivisionPhone: 03-3443-7171
Scheduled date of filing quarterly securities report: November 14, 2022
Scheduled date of commencing dividend payments: December 5, 2022
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes (for Institutional Investors and Analysts)(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 to September 30, 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%Six months ended
September 30, 2022
39,562
9.6
535
16.0
348
(34.4)
1,041
September 30, 2021
36,0871.0
461(39.9)
531(28.7)(236)(Note) Comprehensive income:Six months ended September 30, 2022:¥2,051 million [188.9%]
Six months ended September 30, 2021:¥710 million [296.1%]
Basic earnings
per share
Six months endedSeptember 30, 2022
September 30, 2021

Diluted earnings pershareYen

Yen

21.83
(4.83)

21.47-(2) Consolidated Financial Position
Total assets
Million yen
As ofSeptember 30, 2022
84,967
March 31, 2022
91,222(Reference) Equity: As of September 30, 2022:
As of March 31, 2022:

Net assets

Capital adequacy ratio

Million yen¥¥―1―58,182
57,611
46,088 million
45,236 million

%

54.2
49.6

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

YenYenYenYenFiscal 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:

Year-end

TotalNo

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%

Million yen%

Yen

Full year
80,0005.01,000 (21.7)(Note) Revision to the financial results forecast announced most recently:

Million yen%

Million yen

1,100No

(7.5)

920-

19.60

* Notes:(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(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):
September 30, 2022:
49,267,180 shares
March 31, 2022:
49,267,180 shares2) Total number of treasury shares at the end of the period:
September 30, 2022:
1,829,545 shares
March 31, 2022:968,247 shares
3) Average number of shares during the period:
Six months ended September 30, 2022:
Six months ended September 30, 2021:

47,728,621 shares
49,079,375 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 the certain assumptions that we consider reasonable. The actual performance may significantly vary due to thevarious factors.

Regarding business forecasts, please refer to the page 5 “1.3 Statements for Financial Forecasts andBusiness Outlook”.
―2―[APPENDIX]

1. Business Results

4

1.1 Highlight of Operating Results of Six Months ended September 30, 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 (Six Months ended September 30, 2022)
1.1 Highlight of Operating Results of Six Months ended September 30, 2022⚫

⚫
⚫

Consolidated sales increased by 9.6% in the amount of 39.6 billion yen from the previous fiscalyear. Operating income was 0.54 billion yen which increased by 16.0%. Net income attributableto owners of parent was 1.04 billion yen compared to a loss of 0.24 billion yen in the previousfiscal year, including an extraordinary income for the sale of subsidiaries in Japan and overseas.
In smart meters & solutions in Japan, sales of smart meters, solutions and switch gears
increased and profits expanded accordingly.
In smart meters & solutions overseas, while shipments to Oceania showed steady growth,
shipments to UK decreased due to electronic component shortages, resulting in flat sales.
Profits decreased due to a hike in material costs, marking an operating loss.
Summary of Consolidated Financial Results for the Six Months ended September 30, 2022
(Millions of yen)
Six Months ended Six Months ended
September '21
September '22

Net sales

YoY change
Amount%36,08739,562

3,475

9.6%

Smart meters & solutions in Japan

21,40524,276

2,871

13.4%

Smart meters & solutions overseas

14,613

14,647330.2%

Production equipment

337

761

424

125.8%

Real estate

277

282

51.9%

Adjustment

(546)

(405)

140－

Operating income

461

535

73

16.0%

Smart meters & solutions in Japan

366

1,163

796

217.4%

Smart meters & solutions overseas

118(777)(895)－(162)

9171－

Real estate

139

141

21.6%Adjustment

(0)

(1)

(1)

－

Ordinary income

531

348

(182)

(34.4)%

Profit attributable to owners of parent

(236)

1,041

1,278

－

Production equipment―4―

1.2 Consolidated Financial Condition
Total assets as of September 30, 2022 were 84,967 million yen, a 6,254 million yen decrease fromMarch 31, 2022. This was mainly due to a decrease in notes and accounts receivable, and cash
and deposits by 4,676 million yen and 2,398 million yen respectively, while inventory increased by
2,260 million yen.
Total liabilities were 26,785 million yen, a 6,825 million yen decrease from March 31, 2022. Thiswas mainly due to a decrease in notes and accounts payable and short to long term borrowings by
1,454 million yen and 4,163 million yen respectively.
Net assets were 58,182 million yen, a 570 million yen increase from March 31, 2022. This wasmainly due to an increase in capital surplus and foreign currency translation adjustment by 567
million yen and 794 million yen respectively, while treasury shares deducted from equity increasedby 434 million yen.

1.3 Statements for Financial Forecasts and Business Outlook
There are no changes made to the financial forecasts, which were previously
announced on August 25, 2022.

―5―

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

As of September 30,2022

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

11,857
3,546

9,458
4,584

17,436

12,759

6,031

7,093

Work in process
Raw materials and supplies

3,165
6,911

3,248
8,027

OtherAllowance for doubtful accounts

3,234
(530)

3,585(536)

Total current assets

51,65348,221

Buildings and structures, net
Land

8,880
12,830

8,548
12,099Other, net

6,059

5,457

Total property, plant and equipment

Non-current assets
Property, plant and equipment

27,77026,105Intangible assets
Investments and other assets

868

776

Investment securities
Retirement benefit asset

5,229
1,525

5,204
1,512

Other
Allowance for doubtful accounts

4,178
(3)

3,150
(3)

Total investments and other assets

10,9309,864

39,56836,746

91,222

84,967

Total non-current assets
Total assets―6―(Million yen)
As of March 31,2022

As of September 30,2022

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

7,324
2,965

5,869
2,908

Short-term borrowings
Income taxes payable

6,926
502

29381

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

1,656

1,482

48

33

473
6,604

400
5,746

Total current liabilities

26,502

16,853-2,733

4245

2124

Retirement benefit liability
Deferred tax liabilities

2,479
2,154

2,480
2,203

Other

2,410

2,444

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

Total non-current liabilities

7,108

9,931

33,61026,785

Share capital
Capital surplus

7,965
8,750

7,965
8,750

Retained earnings
Treasury shares

25,670(487)

26,238(921)

Total shareholders' equity

41,90042,033

1,119

1,095

1,667
549

2,461
497

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

3,336

4,054

Share acquisition rights
Non-controlling interests

Total accumulated other comprehensive income

509
11,865466
11,626

Total net assets

57,611

58,182

91,222

84,967

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)(Million yen)
For the six months
ended September 30,2021

For the six monthsended September 30,2022

Net sales
Cost of sales

36,08728,20839,56231,318Gross profit

7,878

8,244

Selling, general and administrative expenses

7,417

7,708

Operating profit

461

535

Non-operating income
Interest income

1010

Dividend income
Subsidy income

99
167

129
33

Other

6952

Total non-operating income

347

226

151
76

75
308

Non-operating expenses
Interest expenses
Foreign exchange losses
Other

50

29

Total non-operating expenses

277

413

531

348

Ordinary profit
Extraordinary income
Gain on sale of non-current assets-306

Gain on sale of shares of subsidiaries and associates

-

1,830

Total extraordinary income-

2,137-

580-

580

Profit before income taxes

531

1,905

Income taxes - current

349

469

Income taxes - deferred

131

103

Total income taxes

480

572

Profit50

1,332

Extraordinary losses
Loss on sale of shares of subsidiaries and associates
Total extraordinary losses

Profit attributable to non-controlling interests

287

290

Profit (loss) attributable to owners of parent(236)

1,041

―8―

Consolidated Statements of Comprehensive Income (For the six months)(Million yen)
For the six months
ended September 30,2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

For the six months
ended September 30,2022
50

1,332

117
583

(24)
794

Remeasurements of defined benefit plans, net of tax

(41)

(51)

Total other comprehensive income

659

718

Comprehensive income

710

2,051

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

422

1,760

287

290

―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 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

21,39314,149319

224

36,087―36,087

Intersegment Sales

12464

1752546(546)―21,405

14,613337

277

36,633(546)36,087366118(162)139461(0)461

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 Sep 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

24,265

14,307759

229

39,562―39,562

Intersegment Sales

11339

152405(405)―Total Sales

24,276

14,647761

282

39,968(405)

39,562

Operating Income

1,163(777)9141

537(1)

535

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 that had been classified into the “Production equipment” ofthe Reporting Segments and have excluded from the scope of consolidation.
3. Impairment loss of Fixed Asset and Goodwill by Reporting Segments
There are no applicable matters.

―10―