February 1, 2022

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

FY2021 Third Quarter
Summary of Consolidated Financial Results(Nine Months ended December 2022)⚫

⚫

⚫

Consolidated sales were increased by 0.3% year on year to ¥53.8 Billion. Operating
income declined by 52.4% to ¥0.79 Billion. Net loss attributable to owners of parent
were ¥0.48 billion in contrast to ¥0.06 Billion in profit in the previous third quarter.
In Japan, sales of smart meters decreased, in addition to lower sales of smart locks forrental property which recorded good shipments in the corresponding period of the previousyear. 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 corresponding
period in the previous fiscal year where shipments were restricted from the spread ofCOVID-19. Sales for Iraq (Kurdistan Regional Government), which pushed up the sales in
the previous year declined with its demand subsided. All in all, sales and profits increased
year on year.

1. Consolidated Financial Results(Millions of yen)
YoY Change

FY2020 3Q
Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
Production equipment
Real estate
Adjustment

Gross profit
Ratio to sales
SG & A expenses
Ratio to sales

FY2021 3Q

53,59733,804
19,033860
412(514)
12,49453,75532,24821,395547
415(852)
11,967

23.3%

22.3%

10,834

11,177

20.2%

20.8%

Amount157(1,555)2,362(313)
3(338)
(526)

%

+0.3%
(4.6)%+12.4%(36.4)%+0.7%－(4.2)%(1.0)pt

342

+3.2%
0.6pt

1,660

790

Ratio to sales

3.1%

1.5%

Smart meters & solutions in Japan

Adjustment

1,835(180)(177)
200(17)835
23(229)211(50)(1,000)204(52)11(33)(54.5)%－－+5.8%－

Ordinary income

1,786

808(977)(54.7)%

Profit attributable to owners of parent

62(484)(547)－

Net income per share（yen）

1.27(9.88)(11.15)－

Operating income

Smart meters & solutions overseas
Production equipment
Real estate(869)(52.4)%(1.6)pt* "Production equipment" and "Real estate" which were previously included in "Others," have been
reclassified as reporting segments due to an increase in their quantitative materiality.

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

Full-year
Revised
Forecasts

YoY Change

FY2020 3Q

FY2021 3Q

Japan
Overseas
Oceania
EuropeAsia

35,04918,547
6,201
5,848
3,264

33,074
20,680
7,816
7,963
4,067

(1,975)
2,133
1,615
2,115
803

(5.6)%+11.5%+26.0%+36.2%+24.6%

46,00029,00010,70011,3005,900

Middle Eastand others

3,232832(2,400)(74.3)%

1,100

53,59753,755157+0.3%

75,000¥107.55/USD¥108.58/USD

Total
Average exchange rate

Amount%¥109.90/USD*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)

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

Total

YoY Change

FY2020 3Q

FY2021 3Q

16,759
2,691
4,781
3,090

16,2771,994
4,516
2,971(482)
(697)
(265)
(119)

(2.9)%(25.9)%(5.5)%(3.9)%

6,463

6,471

8+0.1%

33,78532,230(1,555)(4.6)%

Amount%*Referential figures based on managerial accounting** Monitor Control: Energy management systems, smart locks, etc.

（2）Smart meters & solutions overseas

MetersMonitor Control(**)
Total

FY2020 3Q

FY2021 3Q

12,665
5,951
18,617

13,0207,647
20,668(Millions of yen)
YoY Change
Amount355
1,696
2,051%+2.8%+28.5%+11.0%*Referential figures based on managerial accounting** Monitor Control: Meter related systems, communications hubs, etc.

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

R&D expenditures
Depreciation
Capital expenditures

FY2020 3Q

FY2021 3Q

2,227
2,024
1,164

2,341
1,870
1,7012

Amount114(154)
536%

+5.1%
(7.6)%+46.1%

5.

FY2021 Consolidated Forecast
Osaki announces the revisions made to the financial forecasts for the fiscal year ending
March 31, 2022 as following. To note, the Company announced its decision to forego theprevious consolidated financial forecasts for fiscal year 2021 on November 2, 2021.
(Millions of yen)

Full-year
FY2020Results⚫
⚫
⚫
⚫

FY2021
InitialForecast(A)FY2021
RevisedForecast(B)Difference(B-A)
Amount%Net sales

76,25583,00075,000(8,000)(9.6)%

Operating income

2,684

3,500700(2,800)(80.0)%

Ordinary income

2,888

3,300600(2,700)(81.8)%

Profit attributable toowners of parent

482

3,000(900)(3,900)－Osaki expects that the worldwide shortage of electronic component used in smart meters will
prolong into the fourth quarter of fiscal year 2021, affecting our worldwide businesses.
In Japan, sales of energy management system and smart locks for rental properties areexpected to remain sluggish due to impact from the spread of COVID-19 virus.
Rise of component prices worldwide is expected to lower our profitability.
Recording of an extraordinary gain from sale of a subsidiary in the amount of 1.68 billion yen,which was included in the initial forecasts, is now expected in the next fiscal year.
(Millions of yen)

Full-year

FY2021
InitialForecast(A)FY2020Results

YoYFY2021
ChangeRevisedForecast(B)Difference(B-A)
Amount%Net sales76,255

83,00075,000(8,000)(9.6)%

Smart meters & solutions in Japan48,19349,70044,850(4,850)(9.8)%

Smart meters & solutions overseas

27,301

32,50030,000(2,500)(7.7)%

Production equipment

960

850

700(150)(17.6)%

Real estate

553

550

550－

－

Adjustment

(753)

(600)

(1,100)(500)－

Operating income

2,684

3,500

700(2,800)(80.0)%

Smart meters & solutions in Japan

3,136

2,500

700

(1,800)(72.0)%

Smart meters & solutions overseas
Real estate

(467)
(264)
270

1,000(250)250

50(300)250(950)(50)－(95.0)%－－Adjustment

9－－－－

2,888

3,300

600(2,700)(81.8)%

482

3,000(900)(3,900)－

Production equipment

Ordinary income
Profit attributable to owners of parent⚫ 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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