May 11, 2021

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

Summary of FY2020 Consolidated Financial Results(12 Months ended March 2021)⚫

⚫

⚫

Consolidated sales were down by 15.3% year on year to ¥76.3billion. Operating income
declined by 27.3% to ¥2.68 billion. Profit attributable to owners of parent declined by
59.7% to ¥0.48 billion.
In Japan, sales declined mainly due to the expansion of COVID-19 virus infection in themidst of the peak out period in demand for smart meters. Sales of energy managementsystems declined from customers restraining investments largely due to the impact ofCOVID-19 virus infection. Profits, however, increased year on year, from cost reduction
efforts.
In the overseas, installation of smart meters was slower-than-expected due tolockdowns associated with the spread of COVID-19 virus. Orders for Iraq (KurdistanRegional Government) and Cambodia projects, which recorded a temporary increase inorders in the same period of the previous fiscal year, declined year on year. As a result,sales and profits declined.

1. Consolidated Financial Results(Millions of yen)

FY2019YoY Change

FY2020

Amount%90,06976,255(13,813)(15.3)%

Smart meters & solutions in Japan

51,842

48,193(3,648)(7.0)%

Smart meters & solutions overseas

37,462

27,301(10,160)(27.1)%Net sales

1,905

1,514(391)(20.6)%(1,141)

(753)

387

－

17,34222.7%
14,657
19.2%
2,684
3.5%
3,136

(2,334)

Smart meters & solutions in Japan

19,67721.8%
15,986
17.7%
3,691
4.1%
3,013

122(11.9)%+0.9pt(8.3)%＋1.5pt(27.3)%(0.6)pt＋4.1%

Smart meters & solutions overseas

440(467)(907)－Others2106(204)(97.1)%

Adjustment279(17)(63.8)%

Ordinary income

3,544

2,888(656)(18.5)%

Profit attributable to owners of parent

1,197482(714)(59.7)%Net income per share（yen）

24.47

9.84(14.63)(59.8)%

ROE

2.5%

1.0%

―(1.5)pt

OthersAdjustment

Gross profit
Ratio to sales
SG & A expenses
Ratio to sales
Operating income
Ratio to sales(1,328)(1,006)* Our estimates of impact from the COVID-19 epidemic to the Fiscal 2020 Results has notchanged from the following forecasts announced on 2 February, 2021:
Net Sales: (17.0 billion)
Breakdown Japan: (3.2 billion), Overseas: (13.5 billion), Others: (0.3 billion）
Operating income: (2.4 billion)
Breakdown Japan: none, Overseas: (2.3billion), Others: (0.1 billion）

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

FY2019YoY Change

FY2020

Amount%FY2021
1HForecast

FY2021
Full-year
Forecast

Full-year Forecast
YoY Change
Amount%Japan

53,47549,641(3,834)(7.2)%

23,50051,000

1,358+2.7%

Overseas

36,593

26,614(9,979)(27.3)%

15,50032,0005,385+20.2%

Oceania

9,422

9,154(268)(2.8)%

5,500

10,5001,345+14.7%

Europe9,558

8,952(605)(6.3)%

6,000

13,5004,547+50.8%

Asia

8,841

4,803

(4,037)(45.7)%

2,800

5,500

696

+14.5%

Middle Eastand others

8,770

3,703

(5,067)(57.8)%

1,200

2,500(1,203)(32.5)%

Total

90,06976,255(13,813)(15.3)%

39,00083,000

6,744

+8.8%

Average exchangerate¥109.05¥106.76/USD/USD¥106.76/USD (Exchange rate assumption)*Calculations are based on the annual securities report.

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

FY2019MetersMonitor Control(**)
Switchgears
VCTs
Others(including adjustments)

Total

YoY Change

FY2020

Amount%27,136
3,055
7,847
4,767

22,811
3,565
7,725
4,094

(4,325)
510
(122)
(673)

(15.9)%+16.7%(1.6)%(14.1)%

9,012

9,972960+10.7%

51,81948,169(3,650)(7.0)%*Referential figures based on managerial accounting** Monitor Control: Energy management systems, smart locks, etc.

（2）Smart meters & solutions overseas
FY2019MetersMonitor Control(**)
Total(Millions of yen)
YoY Change

FY202025,263
11,22636,490

Amount18,248
8,429
26,678(7,015)(2,797)(9,812)%(27.8)%(24.9)%(26.9)%*Referential figures based on managerial accounting** Monitor Control: Meter related systems, communication hubs, etc.

4. R&D expenditures, Depreciation, Capital expenditures
FY2019FY2020YoY Change
Amount%FY2021Forecast(Millions of yen)
YoY Change
Amount%R&D expenditures

3,242

2,900(342)(10.6)%

3,400499+17.2%

Depreciation

2,905

2,749(156)(5.4)%

2,700(49)(1.8)%

Capital expenditures

2,341

2,012(328)(14.0)%

2,800

787+39.1%

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5. FY2021 Consolidated Forecast
1H
FY2020Net sales

Full-year

YoY Change
FY2021
Forecast

Amount%FY2020YoY Change

FY2021
Forecast

Amount%35,73439,000

3,265

+9.1%

76,25583,000

6,744

+8.8%

22,30822,800491+2.2%

48,19349,7001,506+3.1%12,916

15,7502,833+21.9%

27,301

32,5005,198+19.0%

903

750(153)(16.9)%

1,514

1,400(114)(7.5)%

(393)

(300)

93－

(753)

(600)

153－

767

800

32+4.2%

2,684

3,500

815

+30.4%

948

400(548)(57.8)%

3,136

2,500(636)(20.3)%

(224)

400

624－

(467)

1,000

1,467－

Others430(43)(100.0)%60(6)(100.0)%Adjustment

0－(0)(100.0)%9－(9)(100.0)%Ordinary income

744700(44)(6.0)%

2,888

3,300

411

+14.3%

Profit attributable toowners of parent(202)100302－482

3,000

2,517

+522.0%Smart meters &solutions in Japan
Smart meters &solutions overseas
OthersAdjustment

Operating income
Smart meters &solutions in Japan
Smart meters &solutions overseas⚫

In Japan, smart meters business expects tough environment with low demand and severe pricecompetition in the midst of the peak out period until demand picks up in Fiscal 2024. Products
and services including energy management systems, smart locks for rental property areexpected to see an increase in sales as the impact from COVID-19 is expected to decrease.
Profits are expected to decline from lower utilization rates for smart meter production as wellas an expected increase in SG&A expenses from FY2020, where costs were severely cut inthe midst of COVID-19 pandemic.

⚫

In the overseas, both sales and profit are expected to increase, mainly due to steady growth in
Oceania by providing high profit solution services, and an increase in shipments for the UKproject.

⚫

Outlook for profit attributable to owners of parent includes extraordinary gain from the transfer ofshares in a consolidated subsidiary.

36. FY2021-2025 Mid-term Management Plan
(Millions of yen)

FY2021
Forecast

FY2022
Outlook

FY2023
OutlookNet sales

83,00085,00088,000Japan (**)

51,00051,00052,000Overseas

32,00034,00036,000Operating income

3,500

5,000

5,500

Japan (**)

2,500

2,700

2,700

Overseas

1,000

2,300

2,800

Ordinary income

3,300

4,900

5,500

Profit attributable toowners of parent

3,000

2,800

3,500

ROE

6.5%

6.0%

7.0%

FY2025Mid-term Target

8,000 (minimum)

9.0% (minimum)* Break down of Net Sales are external sales.
** Japan includes “Smart meters & solutions in Japan” and “Others”.

7.
⚫

Shareholder Return
The Company sets basic policy to carry out the continual distribution of a steady dividend toshareholders, while providing additional performance-based dividends.

⚫

The basic policy states that the amount distributed will be based on higher of either a dividend
payout ratio of 30% or 2% of DOE (dividend on equity).

⚫

The year-end dividend outlook for the current year is 10 yen per share, and annual dividends of20 yen.

⚫

For the next fiscal year, the Company plans to pay an interim dividend of 10 yen per share and 10
yen of year-end dividend, resulting in annual dividends of 20 yen, the same as the current year.
Dividend per share
InterimYear-end

AnnualTotal amount of Consolidated
payout ratio
dividends

FY201810 yen

10 yen20 yen978 million yen

81.7%

FY201910 yen

10 yen20 yen980 million yen

203.3%FY2020 Forecast

10 yen

10 yen20 yen32.7%⚫ 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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