February 4, 2019

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

FY2018 Third Quarter
Summary of Consolidated Financial Results(Nine Months ended December 2018)
 Consolidated sales decreased by 3.3% year-on-year to ¥54.9 billion.
Operating income declined by 34.1% to ¥2.7 billion. Ordinary income dropped
by 32.6% to ¥2.8 billion. Profit attributable to owners of parent decreased by
48.3% to ¥1.0 billion.
 In Japan, demand for smart meters remained at high levels and inventory
adjustment by electric power companies has passed its peak. Nonetheless,sales in Japan decreased due to lower smart meter sales in the first half andstagnant demand in panel boards.
 Overseas, delays in production due to difficulty in procuring of certain electronic
components led to lower sales.
 In addition to the decrease in revenues, overseas businesses suffered higher
cost of sales ratio, reflecting increased costs from delay in production, combinedwith changes in product sales mix, which led to overall decline in consolidatedprofits.
1. Consolidated Financial Results(Millions of yen)FY2017 3Q FY2018 3Q

Net sales

YoY Change
Amount%56,74154,877(1,864)(3.3)%

Measurement and control equipment

55,78253,456(2,325)(4.2)%

Others

1,067

1,527

459

+43.0%

Adjustment

(108)

(106)

1－

Gross profit

16,206

14,467(1,738)(10.7)%

28.6%

26.4%

12,14011,786

21.4%

21.5%

4,065

2,681

7.2%

4.9%

4,046

2,445

Others13231

Adjustment64(1)(28.6)%

Ordinary income

4,181

2,817(1,363)(32.6)%

Profit attributable to owners of parent

1,867966(901)(48.3)%Net income per share（yen）

38.27

19.76(18.51)(48.4)%

Ratio to sales

SG & A expenses
Ratio to sales

Operating income
Ratio to sales

Measurement and control equipment1(2.2)pt(353)(2.9)%+0.1pt(1,384)(34.1)%(2.3)pt(1,601)(39.6)%

218 +1,624.0%

2. Consolidated Sales by Region (Excluding intercompany sales)
FY2017 3Q

FY2018 3Q

Japan

42,403

Overseas

YoY Change(Millions of yen)

FY2017

Amount%41,345(1,058)(2.5)%

59,927

14,33813,531(806)(5.6)%

18,852Oceania

6,166

5,291(874)(14.2)%

7,807

Europe

2,897

2,931

33

+1.1%

3,858

Asia

4,391

4,609

218

+5.0%

6,168

Others882699(183)(20.7)%

1,017

56,74154,877(1,864)(3.3)%

78,780Total

FY2018 Forecast
Revised on 31/10/2018

58,30021,70080,0003. R&D expenditures, Depreciation, Capital expenditures(Millions of yen)

YoY Change

FY2017 3Q FY2018 3Q

FY2018%Amount

FY2018 Forecast
Revised on 31/10/2018

R&D expenditures

2,461

2,262(198)(8.1)%

3,398

3,500

Depreciation

2,0541,937(116)(5.7)%

2,820

3,000

Capital expenditures

1,989

1,316(672)(33.8)%

3,030

3.000

4. FY2018 Consolidated Forecast
There is no change in the forecast for the fiscal year ending March 31, 2019 (Lastrevised on October 31, 2018). Business performance in Japan and overseas havebeen progressing steadily according to the revised forecast.
(Millions of yen)

FY2017Results

FY2018 Forecast
Revised on
31/10/2018

YoY Change
Amount%Progress vsFY2018 Forecast
Revised on 31/10/2018

Net sales

78,78080,000

1,219

+1.5%

68.6%

Operating income5,5443,500(2,044)(36.9)%

76.6%

Ordinary income

5,634

3,400(2,234)(39.7)%

82.9%

Profit attributableto owners of parent

2,666

1,200(1,466)(55.0)%

80.5%

 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 number offactors could cause actual results to differ materially from expectations.
 All amounts are in millions of yen rounded down unless otherwise stated.

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