Press Release

OSAKI ELECTRIC renews "Mid-term Management Plan"TOKYO, 12th May 2022 – OSAKI ELECTRIC, a leading Japanese smart meter company, has
renewed the “Mid-term Management Plan," covering a five-year period through the Fiscal 2026
(fiscal year ending March 31, 2027).

1. Management Policies
The OSAKI Group’s corporate vision is to be a “Global Energy Solution Leader” that takes onsocial challenges related to energy. The Group strives to challenge for advanced technologies,
create new values and be responsible for better society through our energy solutions.

2. Mid-term Management Plani. Analysis on Fiscal 2021 Results
In the fiscal year ended March 2022, sales and operating income of Smart meters &solutions in Japan and overseas dropped below the initial forecasts due to the worldwide
shortage of electronic components.
In Japan, energy management services and smart locks for rental properties were severely
impacted by the spread of COVID-19 Virus.
Furthermore, net income fell significantly below the initial forecasts due to a postponement of
the sale of overseas consolidated subsidiaries, which was anticipated in the initial forecasts
at the beginning of the year. The extraordinary gain from the sale will be recorded in the firstquarter of the fiscal year ending March, 2023.

ii. Policies for Fiscal 2022 and following years
Based on the stringent results for the fiscal year ended March 2022, the Company will strive
to improve profits by enhancing business portfolio management in the short- to medium-term.
Specifically, the Company expands energy management business utilizing our measurement
technologies while maintaining strong position of smart meter business in Japan.
Overseas, we are increasing the ratio of solutions business, which combines smart metersand head-end systems, from a sales mix centered on smart meters to improve profitability. Atthe same time, shifting to solutions business will mitigate the anticipated impact ofcomponent shortages.
In the mid- to long-term, we will contribute to the decarbonization of society by providing
various energy solutions and services in response to the global trend toward building asustainable society.

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Press Releaseiii. Strategies based on the Mid-term Management Plan
In carrying out the Mid-term Management Plan, OSAKI will take the following strategies:(1) Developing value-added smart meters and expanding energy solutions (Japan)
Accelerate R&D and reinforce manufacturing framework for next-generation smart
meters and explore added value for new smart meters.

(2) Developing new products and services (Japan)Collaborate with various partners to accelerate technology development and reinforcing
marketing

Leverage management resources and reinforce framework to create and market new
products and services

Focus on solution business including one-stop services for decarbonization and GX or
the green transformation, and contribute toward building a sustainable society.

(3) Expanding Global Business (outside Japan)
OSAKI Group will execute the following measures in the focus regions including
Oceania, Europe with particular focus on UK, and emerging countries in Asia and theMiddle East.
Expand solution services for higher profitability and lower component shortage risk

Accelerate the next-generation hardware/software development

Reinforce supply chain management(4) Building resilient group operations


Build strong teams by training and allocation

Strengthen a group-wide risk control



Elevate financial soundness and allocate group resourcesStrengthen sustainability activities

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Press Releaseiv. Business Portfolio Management
The OSAKI Group carries out the aforementioned strategies by managing the businessportfolio below.

Smart meters & solutions in Japan
Smart meter business
Solution businessSwitchgear business

Position and Policy
Drive as a core business.
Provide solutions for social issues such as energy savingand decarbonization by leveraging strong smart meterbusiness.
Aim to improve profitability in Japan.
Provide to stable demand and maintain revenue andprofit contributions.

Smart meters & solutions in overseas
OceaniaEuropeAsia
Middle Eastand othersPosition and Policy
Reinforce solution business by combining smart metersand head-end systems.
Aim for stable profit growth.
Improve profitability in UK by improving product mix andreducing production costs.
Improve profitability by focusing on high margin products
and services, such as solutions services and commercial& industrial meters.

Production equipment and Real estate businesses are managed by a company specific portfolio.

3. Financial and Management Targets
i.

Financial Targets(in millions of yen)

FY2021(Actual)FY2022(Forecast)

FY2023(Outlook)

FY2024(Outlook)

Net sales76,184

80,00083,00085,000Operating Income

1,277

1,000

2,800

4,000

Ordinary Income

1,189

1,100

2,900

4,100

Profit attributable toowners of parent-658

1,500

1,600

2,600

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Press Releaseii.

Sales by Business Portfolio(in millions of yen)
Smart meters & solutions in Japan
Smart meter business
Solution businessSwitchgear business
Smart meters & solutions Overseas
Oceania
EuropeAsia
Middle East and others
OthersTotaliii.

FY2021(Actual)45,98329,425
10,531
6,025
29,095
10,642
11,339
6,041
1,071
1,105
76,184FY2022(Forecast)
50,00032,000
11,5006,500
28,00012,00010,000
4,200
1,800
2,000
80,000

FY2023(Outlook)
50,00031,00012,5006,500
31,00013,50011,500
3,500
2,500
2,000
83,000

FY2024(Outlook)
50,50030,50013,0007,000
32,50015,00011,500
3,000
3,000
2,000
85,000Management Targets
OSAKI recognizes the importance of equity efficiency and sets ROE as its
management target in attaining sustainable improvement.

ROE

FY2021(Actual)-1.4%

FY2022(Forecast)
3.5％

FY2023(Outlook)
3.5％

FY2024(Outlook)
5.5％

FY2026(Target)8％or higher* The Company applies a rolling method to its Mid-term Management Plan** Forward-looking statements made in this material is based on management’s estimates, assumptions andprojections at the time of publication and do not represent a commitment that they will be achieved. A numberof factors could cause actual results to differ materially from expectations.

About OSAKI ELECTRIC
OSAKI ELECTRIC is one of the leading smart meter companies in the world. OSAKI Group is
focused on designing, developing and manufacturing innovative and technologically advancedenergy meters and metering systems for the global utility industry. The Group's businessportfolio includes a comprehensive range of premium quality metering products, energy
management systems and IoT/AI integrated smart services. For more information, please visit
https://www.osaki.co.jp/en/index.html

End of Notice

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