Press Release

OSAKI ELECTRIC renews "Mid-term Management Plan"TOKYO, 11th May 2023 – OSAKI ELECTRIC, a leading Japanese smart meter company, has
renewed the “Mid-term Management Plan," covering a five-year period through the Fiscal 2027
(fiscal year ending March 31, 2028).

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 2022 Results
In the fiscal year ended March 2023, while shipments to UK decreased due to a shortage ofelectronic components, the Japanese business showed a healthy performance, leading theconsolidated sales and operating income to exceed the initial forecasts.

ii. Management Guidance for Fiscal 2023 and following years
OSAKI anticipates a stagnant market condition in the Japanese smart meter business andproceeds to concentrate on expanding products and solutions related to energy management
as a short-term strategy in the domestic domain. As for the overseas business, the Company
sets an improvement in profitability as top priority and strives to minimize the impact ofelectronic shortages.
In the medium-term, the Company expands green technology solutions business to support
customers to accelerate decarbonization actions. In addition we will reinforce the R&D andmanufacturing framework in preparation for the introduction phase of the next-generation
smart meters in Japan.
In the overseas business, we continue to focus on improving profitability. Accordingly, theCompany will increase the ratio of solutions business including smart meters and head-endsystems, while streamlining organization functions such as R&D facilities and reinforcing
supply chain management.

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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
meter.

Expand value-added energy saving solutions business in decarbonization, and developand provide a packaged service leveraging green technology.

(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 that will contribute toward building a sustainable society(3) Expanding global business focused on profit
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 high-valued solution services suited to various markets

Streamline organizational functions including R&D locations



Reinforce supply chain management(4) Building resilient group operations
Strengthen the development and utilization of the Group’s human resourcesStrengthen Group risk management

Strengthen financial structure and optimally allocate management resources

Promotion of sustainability response(5) Shared value
In carrying out the aforementioned strategies, OSAKI acknowledges the importance ofshared value to achieve its mid-term management goals. Therefore, the Company will carryout internal campaigns to clarify important values and take thorough measures to share theOSAKI values once in for all among its employees and related stakeholders.

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Press Release

3. Financial and Management Targets
i.

Financial Targets(in millions of yen)

FY2022(Actual)FY2023(Forecast)

FY2024(Outlook)

FY2025(Outlook)

Net sales

89,25388,00091,00098,000Operating Income

2,226

2,800

4,000

5,500

Ordinary Income

1,885

2,400

3,700

5,200

Profit attributable toowners of parent

1,319

1,000

2,200

3,300

ii.

Management Targets
OSAKI recognizes the importance of equity efficiency and sets ROE as its
management target in attaining sustainable improvement.

ROEⅲ.

FY2022(Actual)
2.9%

FY2023(Forecast)
2.5%

FY2024(Outlook)
5.0%

FY2025(Outlook)
7.0%

FY2027(Target)
8% or higher

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

FY2022(Actual)54,40634,885
12,483
7,037
33,62015,628
10,129
5,800
2,062
1,226
89,253

FY2023(Forecast)

FY2024(Outlook)

FY2025(Outlook)

50,50030,50013,0007,000
37,00016,50015,500
3,000
2,000
500
88,00050,50029,00014,0007,500
40,00017,00016,000
3,000
4,000
500
91,00054,50030,00017,0007,500
43,00018,00016,500
4,000
4,500
500
98,000Page 3 of 4Press Release

Reference: OSAKI Value Creation Process* 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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