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, 2022
[Japanese GAAP]
August 2, 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 Officer
Contact:
Ryuichi Ueno
Head of Corporate Strategy Division
Phone: 03-3443-7171
Scheduled date of filing quarterly securities report: August 12, 2022
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, 2022 (April 1, 2022 to June 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%Three months ended
June 30, 2022
19,3779.4
540
18.7547(4.2)
2,116June 30, 2021
17,720(8.4)
455(32.0)571
102.3
128(Note) Comprehensive income:Three months ended June 30, 2022:¥
2,496 million [174.7%]
Three months ended June 30, 2021:¥908 million [-%]
Basic earnings
per share
Three months ended
June 30, 2022
June 30, 2021

Diluted earnings pershare
YenYen

44.22
2.62

43.46
2.57(2) Consolidated Financial Position
Total assets
As ofJune 30, 2022
March 31, 2022
(Reference) Equity:

Net assets

Million yen

87,906
91,222As of June 30, 2022:
As of March 31, 2022:

Capital adequacy ratio

Million yen

¥
¥

―1―

58,76557,611
46,763 million
45,236 million

%

53.2
49.6

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

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:

Year-end

TotalNo

3. Consolidated Financial Results 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
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper shareparentMillion yen%

Million yen%Six months ended
39,0008.1(200)
September 30, 2022
Full year
80,0005.0
1,000 (21.7)(Note) Revision to the financial results forecast announced most recently:

Million yen%

Million yen%

Yen

(150)

-

1,300-

27.59

1,100No(7.5)

1,500-

31.96* Notes:(1) Changes in significant subsidiaries during the three months ended June 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):
June 30, 2022:
49,267,180 shares
March 31, 2022:
49,267,180 shares2) Total number of treasury shares at the end of the period:
June 30, 2022:
1,647,352 shares
March 31, 2022:
968,247 shares
3) Average number of shares during the period:
Three months ended June 30, 2022:
Three months ended June 30, 2021:

47,861,351 shares
49,048,418 shares* Financial results reports are exempt from audit conducted by certificated public accountants or an audit corporation.
* Proper use of business forecasts and other special notes
Described in this statement for the future such as business outlook are based on information we currently have and certain assumptions
that we consider reasonable. Actual performance might significantly vary due to various factors.
Regarding business forecast, please refer to 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, 2022

4

1.2 Consolidated Financial Condition5

1.3 Statements for Financial Forecasts and Business Outlook

5

2. Consolidated Financial Statements

2.1Consolidated 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 (Three Months ended June 30, 2022)
1.1 Highlight of Operating Results of Three Months ended June 30, 2022⚫

Consolidated sales increased by 9.4% year on year to 19.4 billion yen. Operating income
increased by 18.7% to 0.54 billion yen. Net income attributable to owners of parent was 2.1 billion
yen due mainly to the gain on sales of overseas subsidiary, in contrast to 0.1 billion yen in thesame period of the previous fiscal year.

⚫

In Japan, sales and profits increased due to sales increase in solutions and switchgear business,despite the slight decrease in the smart meter sales.

⚫

In the overseas, overall sales increased from sales increase in Oceania, despite a decrease in
shipments to UK due to electronic component shortages. Profits decreased from rise incomponent and freight costs, and an increase in sales, general and administrative expenses.
Summary of Consolidated Financial Results for the Three Months ended June 30, 2022
(Millions of yen)Three Months

Three Months

ended June '21 ended June '22
Net sales

YoY changeAmount%

17,72019,377

1,657

9.4%

Smart meters & solutions in Japan

10,614

11,842

1,228

11.6%

Smart meters & solutions overseas

7,153

7,202

480.7%

Production equipment

64

301

236

363.4%

Real estate

138

139

00.5%

Adjustment

(252)

(107)

144

－

Operating income

455

540

8518.7%

Smart meters & solutions in Japan

337

627

289

85.9%

Smart meters & solutions overseas

163

(159)

(322)

－

Production equipment

(116)

5121

－

Real estate

69

68

(1)

(1.7)%

Adjustment

1(1)

(2)

－

Ordinary income

571

547

(23)

(4.2)%

Profit attributable to owners of parent

128

2,116

1,987

－―4―

1.2 Consolidated Financial Condition
Total assets at June 30, 2022 were 87,906 million yen, a 3,315 million yen decrease from March31, 2022. This was mainly due to a decrease in notes and accounts receivable, and cash anddeposits by 3,447 million yen and 2,185 million yen respectively, while inventory increased by 1,843
million yen.
Total liabilities were 29,141 million yen, a 4,469 million yen decrease from March 31, 2022. Thiswas mainly due to a decrease in short to long term borrowings by 4,451 million yen, while othercurrent liabilities increased by 192 million yen.
Net assets were 58,765 million yen, a 1,153 million yen increase from March 31, 2022. This was
mainly due to an increase in capital surplus by 1,633 million yen, while non-controlling interest
decreased by 372 million yen.

1.3 Statements for Financial Forecasts and Business Outlook
While financial results for three months ended June 30, 2022 exceeded the financial forecasts for the six
months ending September 30, 2022, there are no changes made to the full-year financial forecasts announced
in May 12, 2022. The Company is currently assessing the ongoing operations and business environment for
further analysis, and will make changes to its financial forecasts as necessary and disclose the changes
immediately.

―5―

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

As of June 30,2022

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

11,857
3,546

9,671
4,040

17,436

13,989

6,031

6,785

Work in process
Raw materials and supplies

3,165
6,911

3,469
7,697

Other
Allowance for doubtful accounts

3,234(530)

3,362
(495)

Total current assets

51,65348,521

Buildings and structures, net
Land

8,880
12,8309,146
12,830

Other, net

6,059

5,496

Total property, plant and equipment

Non-current assets
Property, plant and equipment

27,77027,472Intangible assets
Investments and other assets

868

810

Investment securities
Retirement benefit asset

5,229
1,525

5,439
1,519

Other
Allowance for doubtful accounts

4,178(3)

4,146
(3)

Total investments and other assets

10,930

11,101

39,56839,384

91,22287,906

Total non-current assets
Total assets―6―

(Million yen)
As of March 31,2022

As of June 30,2022

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

7,324
2,965

6,405
3,858

Short-term borrowings
Income taxes payable

6,926
502

27299

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

1,656

1,525

48

34473
6,604

467
6,797

Total current liabilities

26,502

19,414-2,447

4244

21

22

Retirement benefit liability
Deferred tax liabilities

2,479
2,154

2,465
2,186

Other

2,410

2,560

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

Total non-current liabilities

7,108

9,726

33,61029,141

Share capital
Capital surplus

7,965
8,750

7,965
8,750

Retained earnings
Treasury shares

25,670(487)

27,304(818)

Total shareholders' equity

41,90043,202

1,1191,270

1,667
549

1,766
523

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

3,560

Share acquisition rights
Non-controlling interests

Total accumulated other comprehensive income

509
11,865509
11,492

Total net assets

57,611

58,76591,22287,906

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)(Million yen)
For the three months
ended June 30,2021

For the three months
ended June 30,2022

Net sales
Cost of sales

17,72013,642

19,377
15,074Gross profit

4,077

4,303

Selling, general and administrative expenses

3,622

3,762

455

540

Operating profit
Non-operating income
Interest income

55

Dividend income
Subsidy income

91
119

122
30

Other

3430

Total non-operating income

250

189

79
34

49
115

Non-operating expenses
Interest expenses
Foreign exchange losses
Other

1916

Total non-operating expenses

133

182

571

547

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries and associates
Total extraordinary income-289

-

1,730

-

2,019

Profit before income taxes

571

2,567

Income taxes - current
Income taxes - deferred

145
112

201
93

Total income taxes

257

294

Profit314

2,272

Profit attributable to non-controlling interests

185

156

Profit attributable to owners of parent

128

2,116

―8―

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

For the three months
ended June 30,2022
314

2,272

(78)
694

151
99

Remeasurements of defined benefit plans, net of tax

(20)

(25)

Total other comprehensive income

594

224

Comprehensive income

908

2,496

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

723

2,340

185

156

―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 Jun 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

10,608

6,937

62

112

17,720―17,720Intersegment Sales

6216

226252(252)―

10,614

7,153

64

138

17,972(252)

17,720337163(116)

69454

1455

Total sales
Operating Incomeequipment

Real estateTotal(Remark)(Remark) The operating income is adjusted by intersegment transaction eliminations.

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

II

Fiscal year ended 30 Jun 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

11,837

7,127

300

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 Incomeequipment

Real estate(Remark) The operating income is adjusted by intersegment transaction eliminations.

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

―10―

Total(Remark)