Consolidated Financial Results
for the Year Ended March 31, 2022
[Japanese GAAP]May 12, 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 Annual General Meeting of Shareholders: June 28, 2022
Scheduled date of commencing dividend payments: June 29, 2022
Scheduled date of filing annual securities report: June 29, 2022
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual 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 Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
March 31, 2022
76,184(0.1)
1,277(52.4)
1,189(58.8)(658)
March 31, 2021
76,255(15.3)
2,684(27.3)
2,888(18.5)
482(59.7)(Note) Comprehensive income:Fiscal year ended March 31, 2022:¥
718 million [(57.2) %]Fiscal year ended March 31, 2021:¥
1,678 million [47.8%]
Basic earnings per Diluted earnings per Rate of return on
share
share
equityFiscal year ended
March 31, 2022
March 31, 2021

Ordinary profit tototal assets ratio

Operating profit to
net sales ratio

Yen

Yen

%

%

%

(13.42)
9.84

9.68

(1.4)
1.0

1.3
3.1

1.7
3.5

(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
(Reference) Equity:

Net assets

Million yen

91,222
90,989As of March 31, 2022:
As of March 31, 2021:

Capital adequacy ratio

Million yen¥¥

57,611
58,88745,236 million
46,614 million

Net assets per share

%

Yen

49.6
51.2

936.60950.37

1
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2022
March 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

4,422
10,503(1,219)(1,187)(2,934)(6,939)15,335
14,654

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Total
dividends

Dividends
to netassetsPayoutratio(consolidated)(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

March 31, 2021

-

10.00

-

10.00

20.00

980

203.3

2.1

March 31, 2022

-

10.00

-

10.00

20.00

974

-

2.1

-

10.00

-

10.00

20.00

Fiscal year ending
March 31, 2023

62.6

(Forecast)
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 to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Six months ended
September 30, 2022
Full year

Million yen%

Million yen%

39,000

8.1

(200)

-

80,0005.0

1,000(21.7)

Million yen%

Million yen

%

Yen

(150)

-

1,300

-

27.59

1,100

(7.5)

1,500

-

31.96

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No(Company name:New)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2022:
49,267,180 Shares
March 31, 2021:
49,267,180 Shares2) Total number of treasury shares at the end of the period:
March 31, 2022:
968,247 Shares
March 31, 2021:
218,762 Shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2022:
Fiscal Year ended March 31, 2021:

49,040,808 Shares
49,016,655 Shares

2
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Operating profit

Ordinary profit

Net income

Million yen%

Million yen%

Million yen%

Million yen%

23,461
25,610(8.4)(10.7)

(865)
333

214.7

23
1,093

(97.9)
30.6

(77)
747

46.6

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2022
March 31, 2021

Yen

Yen

(1.57)
15.24

14.99

(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
(Reference) Equity:

Net assets

Million yen

51,551
51,726
As of March 31, 2022:
As of March 31, 2021:

Capital adequacy ratio

Million yen¥¥

35,711
36,99335,201 million
36,484 million

Net assets per share

%

Yen

68.3
70.5

728.83743.84* 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.
Basic earnings per share is calculated using average number of shares during the reported period, with an assumption thattreasury shares acquisition will increase and treasury shares disposal will decrease.
Actual performance might significantly vary due to various factors and any reference to future outlook does not represent
commitment that it will be achieved.
Conditions for business forecast assumptions and a suggested use of business forecast, please refer to page 8, “1.4. Consolidated
Forecasts”.

The Company plans to hold a briefing session for Institutional investors and Analysts on June 6, 2022. Documents of thebriefing session will be posted on our website immediately on the day of the event.

3
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

[APPENDIX]

1. Business Results

5

1.1 Highlight of Operating Results of this Fiscal Year5

1.2 Consolidated Financial Conditions

6

1.3 Cash Flows6

1.4 Consolidated Forecasts

8

1.5 Fundamental Policy Regarding Distribution of Profits9

1.6 Group Structure10

1.7 Business and Other Risks

11

2. Consolidated Financial Statements

14

2.1 Consolidated Balance Sheets

14

2.2 Consolidated Statements of Income andConsolidated Statements of Comprehensive Income

16

2.3 Consolidated Statement of Changes in Net Assets

18

2.4 Consolidated Statement of Cash Flows20

2.5 Notes to Consolidated Financial Statements

22(Business Segments)

22(Per Share Information)

23(Subsequent Events)

24

4
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

1. Business Results (Fiscal year ended March 31, 2022)
1.1 Highlight of Operating Results of this Fiscal Year⚫

Consolidated sales were decreased by 0.1% year on year to ¥76.2 Billion. Operating income
declined by 52.4% to ¥1.28 Billion. Net loss attributable to owners of parent were ¥0.66
billion in contrast to ¥0.48 Billion in profit in the previous fiscal year.

⚫

In Japan, sales of smart meters decreased, in addition to lower sales of smart locks for rental
property which recorded good shipments in the previous fiscal year. Profits decreased year
on year, due to sales decrease as well as lower profitability caused by a rise in raw material
prices.

⚫

In the overseas, shipments to Oceania and UK increased compared to the previous fiscal
year where shipments were restricted from the spread of COVID-19. Sales for Iraq
(Kurdistan Regional Government), which pushed up the sales in the previous year declinedwith its demand subsided. All in all, sales and profits increased year on year.
Summary of Consolidated Financial Results for the Year ended March 31, 2022
(Millions of yen)
YoY change

FYE Mar '21

FYE Mar '22

76,25576,184(71)(0.1)%

Smart meters & solutions in Japan48,19346,006(2,186)(4.5)%

Smart meters & solutions overseas

27,30130,068

2,766

10.1%

Production equipment

960

692

(268)

(27.9)%

Real estate

553

553

0

0.1%

Adjustment(753)(1,137)(384)－

Operating income

2,684

1,277

(1,407)(52.4)%

Smart meters & solutions in Japan

3,136

1,225

(1,910)(60.9)%

Smart meters & solutions overseas

(467)

58

525

－

Production equipment

(264)

(282)

(17)

－

Real estate

270

271

0

0.2%

Adjustment

9

4

(5)

(54.6)%

2,888

1,189

(1,698)(58.8)%

482

(658)

(1,140)－Net sales

Ordinary income
Profit attributable to owners of parent

Amount%5
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

1.2 Consolidated Financial Condition(Millions of yen)

As of March 31, 2021

As of March 31, 2022

YoY change

Total assets

90,98991,222233

Total liabilities

32,101

33,6101,509

Total equaty

58,88757,611(1,276)Equity ratio

51.2%

49.6%

(1.6)%

Total assets at March 31, 2022 were 91,222 million yen, a 233 million yen increase from March
31, 2021. This was mainly due to an increase in inventory by 450 million yen and constructionin progress by 412 million yen, while notes and accounts receivable decreased by 450 million
yen.
Total liabilities were 33,610 million yen, a 1,509 million yen increase from March 31, 2021.This
was mainly due to an increase in other current liabilities by 514 million yen, and notes andaccounts payable – trade and electronically recorded obligations – operating by 386 million yen.
Net assets were 57,611 million yen, a 1,276 million yen decrease from March 31, 2021. Thiswas mainly due to a decrease in capital surplus by 1,648 million yen, while foreign currencytranslation adjustments increased by 451 million yen.

1.3 Cash Flows
Cash and cash equivalents at beginning of period was 15,335 million yen, a 680 million yen
increase from the beginning of the previous fiscal year ended March 31, 2021.
(Millions of yen)FYE Mar '21

FYE Mar '22

YoY change

Net cash provided by operating activities

10,503

4,422(6,080)Net cash provided by investing activities(1,187)(1,219)(31)

Net cash provided by financing activities(6,939)(2,934)

4,005

Cash and cash equivalents at end of year

14,654

15,335680(1) Net cash provided by operating activities
Net cash provided by operating activities for the year ended March 31, 2022 was 4,422 million
yen. This was mainly due to a recording of 1,114 million yen in income before income taxes
and minority interests, 2,536 million yen in depreciation and amortization, 1,240 million yen
in decrease in notes and accounts receivable – trade, and 353 million yen in decrease in
6
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

inventories offset the decrease in cash by recording of income taxes paid in the amount of
1,343 million yen.
(2) Net cash provided by (used in) investing activities
Net cash used in investing activities for the year ended March 31, 2022 was 1,219 million yen.
This was mainly due to payments for property, plant and equipment in the amount of 2,444 million
yen.

(3) Net cash provided by (used in) financing activities
Net cash used in financing activities for the year ended March 31, 2022 was 2,934 million yen.
This was mainly due to a decrease in short-term and long-term loans payable overseas by 568
million yen, dividends paid to non-controlling interest in the amount of 1,639 million yen, andpayments for repurchase of its own stock in the amount of 406 million yen.

Cash Flow Indicators(Millions of yen)FYE Mar '20

FYE Mar '21

FYE Mar '22

Equity ratio

47.8%

51.2%

49.6%

Equity ratio at market value

26.7%

32.8%

24.8%

Cash flow to interest-bearing debt ratio (per annum)

－

0.6

2.1

Interest coverage ratio (times)

－

27.4

15.4

(Note)
Equity ratio: Equity / Total assets
Equity ratio at market value: Market capitalization / Total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt / Net cash provided by operating activities
Interest coverage ratio: Net cash provided by operating activities / Interest payment* Each indicator is calculated based on the consolidated financial report.
* Market capitalization is calculated by share price at the end of year multiplied by total number ofissued shares excluding treasury stock.
* Net cash provided by operating activities is equivalent to that of consolidated statements of cash
flows in the financial report for the fiscal year ended March 31, 2022. Interesting-bearing debt
includes all debts with interest payments on the consolidated balance sheets as of March 31, 2022.
Interest payments are equivalent to that of consolidated statements of cash flows for the fiscal year
ended March 31, 2022.
* Net cash used in operating activities in the fiscal year ended March 31, 2020 is not applicable incalculation. Therefore, cash flow to interest-bearing debt ratio and interest coverage ratio are notapplicable.

7
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

1.4 Consolidated Forecasts(1) Consolidated forecasts for the fiscal year ending March 31, 2023
(Millions of yen)FYE Mar '22 FYE Mar '23
Net sales

YoY change
Amount%76,18480,000

3,815

5.0%

Smart meters & solutions in Japan

46,00650,000

3,993

8.7%

Smart meters & solutions overseas

30,06829,000(1,068)(3.6)%

Others

1,246

2,100

853

68.5%

Adjustment(1,137)(1,100)

37

－

1,277

1,000

(277)

(21.7)%

Smart meters & solutions in Japan

1,225

1,500

274

22.4%

Smart meters & solutions overseas

58

(700)

(758)

－

Others

(11)

200

211

－

4

－

(4)

(100.0)%Ordinary income

1,189

1,100

(89)

(7.5)%

Profit attributable to owners of parent

(658)

1,500

2,158

－

Operating income

Adjustment

Sales of Smart meters & solutions in Japan are expected to increase due to a recovery in smart metersales, which were negatively impacted from a worldwide shortage of electronic components, and anincrease in sales of energy management system and services, which were affected by the spread of
COVID-19 virus. Profits are expected to increase, although limited in amount. This is due to an
anticipated raise in material costs, including non-iron metals, despite an expected increase in sales.
As for Smart meters & solutions overseas, Oceania is expected to show steady growth. However,overall sales are expected to decrease due mainly to a decrease in shipments to U.K. from difficulty to
procure electronic components. Profits are expected to decline from sales decrease and anticipatedraise in material costs and shipping expenses.
All in all, consolidated sales for the fiscal year ending March 31, 2023 are expected to increase by
5.0% to 80,000 million yen. Operating income and ordinary income are expected to decrease by 21.7%
to 1,000 million yen and 7.5% to 1,100 million yen respectively. Profit attributable to owners of parent
include extra gain from sale of overseas subsidiary as announced on March 30,2022, and expected toincrease to 1,500 million yen from loss of 658 million yen recorded in the fiscal year ended March 31,
2022.

8
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

(2) Mid-term Management Plan
(Millions of yen)FYE Mar '23 FYE Mar '24 FYE Mar '25
Forecast

Outlook

OutlookNet sales

80,00083,00085,000Operating income

1,000

2,800

4,000

Ordinary income

1,100

2,900

4,100

Profit attributable to owners of parent

1,500

1,600

2,600

ROE

3.5%

3.5%

5.5%

FYE Mar '27
Mid-term Target

8.0% (or higher)

1.5 Fundamental Policy Regarding Distribution of Profits
The Company sets basic policy to carry out the continual distribution of steady dividends to shareholders
while providing additional performance-based dividends.
The basic policy states that, in principle, the amount distributed is higher of either a dividend payout ratioof 30% or 2% of DOE (dividend on equity).
With the goal of increasing capital efficiency, we continuously evaluate the share buy-back option while
taking such factors as cash on hands, working capital, financial performance and stock price trend, andinvestment opportunities into consideration.
As part of our drive to increase our long-term growth in corporate value, we apply retained earnings
towards R&D investments and capital expenditures that will increase our competitiveness. We also aim
to use retained earnings effectively towards M&A and other business opportunities aimed at increasing
earnings.
The year-end dividend outlook for the current year is 10 yen per share, and annual dividends of 20 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.

9
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

1.6 OSAKI ELECTRIC Group Structure
Reporting Segments
Products and Services

Products and Parts

Enegate Co., Ltd.

Products and Services

OSAKI Electric Systems Co., Ltd.

Products

OSAKI Datatech Co., Ltd.

Products

Products and Parts

Products

Smartmeters &solutionsin Japan

Products and Parts

Products
Iwate OSAKI Electric Co., Ltd.
Products and Parts OSAKI Platech Co., Ltd.

OSAKIELECTRIC
CO.,LTD.

[Holding company]
OSAKI United International Pte. Ltd.
(Singapore)

Products and Services
EDMI Limited(Singapore)

Products
EDMI Europe Limited (UK)EDMI Pty. Ltd. (Australia)

Smartmeters &solutionsoverseas

Customer

Products and Services

Parts
EDMI Electronics Sdn Bhd
Products (Malaysia)

Parts
Products EDMI Shenzhen Co., Ltd.
(China)Parts

Real Estate Rental

Production
equipment

OSAKI Estate Co., Ltd.

Real Estate Rental

OSAKI Engineering Co., Ltd.

Products

Real Estate Rental

Real estate

10
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

1.7 Business and Other Risks
The following are the potential major risks that management recognizes as having a material impact on
the financial position, results of operations and cash flows of the consolidated companies in the mattersrelated to business conditions, accounting conditions, etc. described in the summary of financial results.
(1) Market fluctuations
Market fluctuations for the products OSAKI and its group companies provide are caused by various
factors such as political and economic conditions of the regions in subject or government policies.
In addition, product demand is affected by major customers’ financial performance or business andinvestment plans.
Smart meters, which are the Group's mainstay products, are replaced periodically under regulations.
For example, the Measurement act in Japan sets at 10years for the verification period (or the usable
period) of smart meters. Overseas, while usable periods and regulations differ by countries andregions, periodic replacements of smart meters are often required. As a result, demand fluctuations
occur in accordance with cyclical periods of replacements which in turn, affect the financial positions
and operations of the Group.
To encounter the aforementioned risks, the Group is expanding its business not only in Japan but
also in Oceania, Europe, and other emerging countries to disperse the impact of market fluctuations.
In addition, the Group is working to stimulate demand by launching new products and adding
additional functions, and to cultivate new customers. While we are working to disperse the impact
of fluctuations in demand, significant fluctuations in demand could affect the Group's performance.
(2) Price competition
The smart meter industry is highly competitive both in and outside of Japan, and pricing is one of
the most important factors in sustaining competitive positions. To avoid price competition, theGroup selects markets where quality, safety and added value are appreciated, as well as
committing to enhance product competitiveness. However, if prices decline significantly or large
quantities of products are sold at lower than anticipated prices, the Group's performance will be
negatively impacted.
(3) Supply chain risks
a. Procurement of parts and materials
The Group implements specification changes of smart meters to improve functionality and quality,
as well as reducing costs. Therefore, procurement of parts and materials is carefully planned tomaintain appropriate inventory levels while responding to specification changes of smart meters,
order forecasts and procurement lead-time.
However, insufficient supply capacity amid tight demand for materials could adversely influence
the Group’s manufacturing operations. This risk is currently evident due to the worldwide
shortage of semiconductors. In addition, changes in customer requests may lead to inventory
retention of disused parts and materials. Due to the aforementioned factors, the Group’s
performance may be affected.

11
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

b. Cost of parts and materials
The Group purchases parts and materials at appropriate prices. However, prices forsemiconductors, metals and other products are rising and they may rise higher in the future. In
addition, higher logistics costs due to rising crude oil prices and container shortages may
adversely affect profit margins if they are unable to fully compensate by selling products at
appropriate pricing.
(4) Overseas business
The Group’s oversea business operations are mainly in Oceania, Europe, and other emerging
countries. Overseas sales accounted for approximately 40% of the consolidated net sales for theyear ended March 31, 2022. OSAKI’s executives concurrently serves as Directors at its overseas
subsidiary, recognizing that overseas business is essential in the mid to long term growth of theGroup. Management recognizes the importance in close communication with overseas subsidiaries
and information regarding operations and risks are reported in a timely manner. In response to
reducing country risk, the Group operates production at multiple sites, including outsourcing, acrossmultiple countries.
Overseas business, however, are constantly exposed to geopolitical risks such as political andeconomic conditions, conflict and terrorism, as well as uncertainty regarding laws, regulations andsystems. Therefore, unexpected changes in the market or delays in projects, delays in production
and shipments may adversely affect the Group’s operations and financial positions.
(5) Business strategies
OSAKI Group strives to expand our solutions business domestically and overseas as a new drivefor sustainable growth.
The Group views that establishing solutions business in highly competitive industries andgenerating stable earnings takes certain period of time. The Group will re-examine the businessstrategies in a timely manner if the outcome of the solutions business does not reach the expectedscale or profits. Therefore, failure in launching a new source of sustainable growth may lower theGroup’s profitability.
(6) Quality of products and services
The Group manufactures or outsources production based on a predetermined level of quality
control. A strict quality control system has been established to ensure that anomalies ormalfunctions in products are detected before shipments. However, in case anomalies ormalfunctions occur in the future, the Group's performance would be affected in the event of a
product recall, replacement, or compensation for damages.
(7) Research and development
OSAKI Group is strengthening R&D aimed at expanding our solutions business in and outside ofJapan. However, the markets where the Group targets to enter are characterized by constantintroduction of new technologies, and if the Group is unable to carry out appropriate research anddevelopment to meet market demand, the Group’s performance may be affected. In addition, therisk of intellectual property infringement is generally heightened in the field of the solutions
business.

12
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

(8) Fluctuations in foreign exchange and interest rates
Fluctuations in foreign currency exchange rates affects the Group’s assets, liabilities, and incomeof overseas subsidiaries. The Group engages in hedging transactions to reduce the impact offoreign exchange fluctuations, but sudden fluctuations in foreign exchange rates may affect theGroup's performance and financial position.
(9) Sustainability
OSAKI Group recognizes that risks and opportunities related to sustainability is an importantmanagement issue. In response, the Group established the Sustainability Promotion Committee topromote a group-wide action to solve material risks and explore opportunities.
However, delays in responding to these risks could affect the Group's medium-to long-term
performance.
(10) Risks Associated with Disasters
Natural disasters such as earthquakes and typhoons, and floods, accidents such as fires, infectious
diseases and other unpredictable factors may delay or suspend production or shipments for a long
period of time and may adversely affect the Group’s business operations and financial conditions.

13
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

2.Consolidated Financial Statements
2.1 Consolidated Balance Sheets(Million yen)
As of March 31,2021

As of March 31,2022

AssetsCurrent assets
Cash and deposits

12,502

11,857

Deposits paid
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process

4,722
17,8873,546--

17,436

6,220
2,175

6,031
3,165

Raw materials and supplies
Other

7,262
2,770

6,911
3,234

Allowance for doubtful accounts
Total current assets

(450)

(530)

53,09051,653

22,983(13,998)

23,253(14,372)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

8,985

8,880

Machinery, equipment and vehicles
Accumulated depreciation

14,576(11,547)

15,344(12,346)

Machinery, equipment and vehicles, net

3,028

2,998

12,483
3,702

12,8303,527

Accumulated depreciation(1,578)(1,681)

Leased assets, net

2,123

1,845

Construction in progress
Other

113
7,090

526
7,303

(6,369)(6,613)720

689

27,45527,770Land
Leased assets

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

191

-

988

868

1,180

868

Investment securities
Retirement benefit asset

5,067
1,384

5,229
1,525

Deferred tax assets
Other

1,293
1,518

1,372
2,805

(1)

(3)

Other
Total intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

9,262

10,93037,89839,56890,98991,22214
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

(Million yen)
As of March 31,2021

As of March 31,2022

Liabilities
Current liabilities
Notes and accounts payable - trade

7,270

7,324

Electronically recorded obligations - operating
Short-term borrowings

2,632
559

2,965
6,926

Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for product warranties
Other

722
1,505

502
1,656

23

48

156
6,089

473
6,604

Total current liabilities

18,962

26,502Long-term borrowings
Lease liabilities
Provision for retirement benefits for directors (andother officers)
Provision for repairs
Retirement benefit liability

6,210
1,648

1,612

49

42

14
2,346

21
2,479

Deferred tax liabilities
Other

2,119
751

2,154
798

Total non-current liabilities

13,1397,10832,101

33,610Shareholders' equity
Share capital

7,965

7,965

Capital surplus
Retained earnings

8,750
27,3198,750
25,670Non-current liabilities

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(140)

(487)

43,89541,900

988

1,119

1,216

1,667

514

549

2,718

3,336

Share acquisition rights
Non-controlling interests

509
11,764509
11,865

Total net assets

58,88757,611

90,98991,222

Total accumulated other comprehensive income

Total liabilities and net assets

15
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

2.2 Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2021

For the fiscal year
ended March 31,2022

Net sales

76,25576,184

Cost of sales

58,91359,808Gross profit

17,342

16,375

Selling, general and administrative expenses

14,657

15,097

Operating profit

2,684

1,277

Non-operating income
Interest income

25

21

Dividend income
Subsidy income

146
459

155
206

Other

132

144

Total non-operating income

764

528

Non-operating expenses
Interest expenses

384

288

Foreign exchange losses
Other

55
120

191
136

Total non-operating expenses

560

616

2,888

1,189

Impairment losses

357

74

Total extraordinary losses

357

74

Profit before income taxes

2,530

1,114

Income taxes - current
Income taxes - deferred

1,174
(81)

952
61

Total income taxes

1,093

1,013

ProfitOrdinary profit
Extraordinary losses

1,437

100

Profit attributable to non-controlling interests

955

759

Profit (loss) attributable to owners of parent

482

(658)

16
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31,2021
Profit

For the fiscal year
ended March 31,2022

1,437

100

Other comprehensive income
Valuation difference on available-for-sale securities

400

131

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(490)
330

451
34

Total other comprehensive income

240

617

1,678

718

723

(40)

955

759

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

17
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

2.3 Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31,2021(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodBalance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period7,965

CapitalsurplusRetainedearnings

8,750

27,818Treasuryshares(223)

Totalshareholders'equity44,312

(979)

(979)

482

482

(1)

82

80

-

-

(498)

82

(416)

7,965

8,750

27,319(140)

43,895

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasureme accumulateddifference on
currency
nts of defined
otheravailable-for- translation
benefit plans comprehensiv
sale securities adjustmente income

Shareacquisitionrights

Noncontrollinginterests

544

11,303

587

1,706

183

2,477

Total net
assets58,637

(979)
482
80
400

(490)

330

240

(34)

460

666

400

(490)

330

240

(34)

460

250

988

1,216

514

2,718

509

11,76458,88718
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

For the fiscal year ended March 31,2022(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during
periodDividends ofsurplus
Loss attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodBalance at beginningof period
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during
periodDividends ofsurplus
Loss attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period7,965

CapitalsurplusRetainedearnings

8,750

27,319Treasuryshares
(140)

(7)
7,965

8,750

27,312

Total
shareholders'equity43,895(7)(140)

43,888

(981)

(981)

(658)

(658)
(406)

(406)

(1)

59

58

-

-

(1,641)(346)(1,987)

7,965

8,750

25,670(487)

41,900

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasureme accumulateddifference on
currency
nts of defined
otheravailable-for- translation
benefit plans comprehensiv
sale securities adjustmente income

Shareacquisitionrights

Noncontrollinginterests

509

11,764

988

1,216

514

2,718

Total net
assets

58,887
(7)

988

1,216

514

2,718

509

11,76458,880

(981)
(658)
(406)
58
131

451

34

617

-

101

718

131

451

34

617

-

101

(1,269)

1,119

1,667

549

3,336

509

11,86557,61119
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

2.4 Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31,2021

For the fiscal year
ended March 31,2022

Cash flows from operating activities
Profit before income taxes
Depreciation

2,530
2,749

1,114
2,536

Impairment losses
Amortization of goodwill

357
197

74
203

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset

(54)
(222)

31
115

4

22

127

315

15

(6)

69
(31)

133
(90)

Increase (decrease) in provision for repairs
Interest and dividend income

7
(172)

7
(177)

Interest expenses
Loss on retirement of non-current assets

384
77

288
55

Decrease (increase) in trade receivables
Decrease (increase) in inventories

3,530
4,265

1,240
353

Increase (decrease) in trade payables
Other, net(476)(1,264)36(379)

Subtotal

12,094

5,874

174
(382)

179
(288)

Income taxes paid

(1,383)(1,343)

Net cash provided by (used in) operating activities

10,503

4,422(1,332)(2,444)

10
(350)

7
(256)

8
-

2

Payments for long-term deposits paid
Proceeds from long-term deposits

500(1,000)2,500

Other, net

(24)

(28)

(1,187)(1,219)Interest and dividends received
Interest paid

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Proceeds from sale of membership

Net cash provided by (used in) investing activities

20
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

(Million yen)
For the fiscal year
ended March 31,2021

For the fiscal year
ended March 31,2022

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings(5,181)
(26)

(558)
(10)

Repayments of lease liabilities
Dividends paid

(258)
(979)

(319)
(981)

Dividends paid to non-controlling interests
Purchase of treasury shares

(494)
-

(658)
(406)

Other, net

0-Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(6,939)(2,934)

(87)

411

2,288

680

Cash and cash equivalents at beginning of period

12,366

14,654

Cash and cash equivalents at end of period

14,654

15,33521
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

2.5 Notes to Consolidated Financial Statements(Business Segments)
Sales, Profits or Losses, Assets, Liabilities and Other items by Reporting Segments
Fiscal year ended Mar 31, 2021

(Millions of yen)
Adjustment

Reporting Segments
Smart meters & Smart meters & Production Real estatesolutions insolutions overseas
equipment
Japan

Total

Consolidated(Remarks1)

Sales to Customers

48,16926,678960

448

76,255―76,255Intersegment Sales

24

622

0

105

753

(753)

―

Total sales

48,19327,301

960

553

77,009(753)

76,255

Operating Income

3,136

(467)

(264)

270

2,675

9

2,684

(Remarks)
1. The segment income or loss are adjusted by intersegment transaction eliminations.
2. For the Smart meters & solutions in Japan Business and the Production equipment Business, an impairment lossof fixed assets of 325 million yen and 31 million yen are respectively recognized and booked as an extraordinaryloss.

Fiscal year ended Mar 31, 2022

(Millions of yen)
Adjustment

Reporting Segments
Smart meters & Smart meters & Production Real estatesolutions insolutions overseas
equipment
Japan

Total

Consolidated(Remarks1)

Sales to Customers

45,98329,095657

448

76,184―76,184

Intersegment Sales

23

972

35

105

1,137

(1,137)―

Total sales

46,00630,068692

553

77,321(1,137)76,184

Operating Income

1,225

58

(282)

271

1,272

4

1,277

(Remarks)
1. The segment income or loss are adjusted by intersegment transaction eliminations.
2. For the Smart meters & solutions in Japan Business, an impairment loss of fixed assets of 74 million yen arerecognized and booked as an extraordinary loss.

22
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

(Per Share Information)

Fiscal year ended Mar 31, 2021
Net assets per share

Fiscal year ended Mar 31, 2022

¥950.37¥936.60

Basic earnings / loss per share¥9.84¥(13.42)

Diluted earnings per share

¥9.68

―

(Remarks) Basis of calculation of basic earnings/loss per share and diluted earnings per share
Fiscal year ended Mar 31, 2021
Profit/loss attributable to owners of

Fiscal year ended Mar 31, 2022
482

(658)

―

―

482

(658)

49,01649,040

―

―

830

―

―

―

parent (millions of yen)Amount non-attributable to common
stockholder (millions of yen)
Profit/loss attributable to owners ofparent for common share (millions ofyen)
Average number of shares during theperiod of common share (thousands ofshares)Profit adjustment attributable to ownersof parent used to calculate the diluted
earnings per share (millions of yen)
Number of increase common share used
to calculate the diluted earnings per
share (thousands of shares)

Stock

compensation

type

share

acquisition rights
Overview of dilutive share excluded
from the calculation of diluted earnings
per share due to non-dilutive effect(Remarks) Diluted earnings per share for this consolidated fiscal year ended 31 Mar 2022 is not stated due to loss per sharealthough there are dilutive shares.

23
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

(Significant Subsequent Events)
Transfer of shares and tangible assets in a Consolidated Subsidiary
The Company resolved at the meeting of the Board of Directors held on May 11, 2021, that its
subsidiary EDMI Limited to transfer all shares in Quantum Automation Pte Ltd, a wholly owned
subsidiary of EDMI, to Totech Corporation.
The transfer of all shares of Quantum Automation Pte Ltd. was complete on March 30, 2022, alongwith a transfer of all real estate property including the headquarters used by Quantum Automation.
1.Outline of the transfer(1)

Name of the transferee
Totech Corporation(2) Date of transfer
March 30, 2022
(3) Name of parties involved in the event, business and relationships
A) Name: Quantum Automation Pte Ltd
B) Business outline: Development, integration and maintenance of building automation
systemsC) Business relationships: not applicable(4) Number of shares transferred, amount of sales by transfer, gain or loss on transfer, shareratio after the transfer
A) Number of shares transferred:

2,000,000 sharesB) Amount of sales by transfer: U.S. dollars equivalent to 4,000 million yen
C) Gain or loss on transfer: To be recorded as extraordinary gain from sale of a
subsidiary in the amount of 1.73 billion yen in the first quarter ending
June 30,2022
D) Share ratio after the transfer:-%

2. Transfer of tangible assets(1) Location and contents of tangible assets
A) Location: 9 Senoko Drive Singapore 758197
B) Contents of tangible assets: real estate property(2) Gain or loss on transfer
To be recorded as extraordinary gain from sale of tangible assets in the amount of 0.28 billion
yen in the first quarter ending June 30, 2022
(3) Outline of the transfereeA) Name: Quantum Automation Pte Ltd
B) Business outline: Development, integration and maintenance of building automation
systems
24
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022

C) Business relationships: not applicable(4) Date of transfer:
March 23, 2022

*This document is a translation of the original Japanese version and provided for reference purposes only. In the event ofany discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
*Full English translation of the notes to the financial statements will be added later.
*Forward-Looking Statements
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.
About OSAKIOSAKI ELECTRIC is one of the leading smart meter companies in the world. OSAKI Group is focused on designing,developing and manufacturing innovative and technologically advanced energy meters and metering systems for the
global utility industry. The Group's business portfolio includes a comprehensive range of premium quality metering
products, energy management systems and IoT/AI integrated smart services.
Visit

https://www.osaki.co.jp/en/index.html

25
OSAKI ELECTRIC’ Consolidated Financial Results for the Year Ended March 31, 2022