February 2, 2021
Osaki Electric Co., Ltd.
Tokyo Stock Exchange 1st Section
Securities code: 6644

FY2020 Third Quarter
Summary of Consolidated Financial Results(Nine Months ended December 2020)⚫ Consolidated sales were down by 19.0% year on year to ¥53.6 billion. Operating income⚫

⚫

declined by 49.9% to ¥1.7 billion. Profit attributable to owners of parent declined by
95.8% to ¥62 million.
In Japan, in addition to being in the midst of the peak out period in demand, installation ofsmart meters was delayed due to the spread of COVID-19 virus, causing smart metercustomers to postpone orders. As for energy management services, customers restrained
from spending due to COVID-19. As a result, overall sales and profits in Japan decreased.
In the overseas, likewise, installation of smart meters was stagnant due to lockdowns
associated with the spread of COVID-19 virus. Shipments to Oceania, UK and Asia
declined, while orders for Iraq (Kurdistan Regional Government) and Cambodia
projects, which recorded a temporary increase in orders in the same period of theprevious fiscal year, declined year on year. As a result, overall sales and profits in theoverseas decreased.

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

FY2019 3Q
Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
OthersAdjustment

Gross profit
Ratio to sales
SG & A expenses
Ratio to sales
Operating income
Ratio to sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
OthersAdjustment

Ordinary income
Profit attributable to owners of parent

Net income per share（yen）

FY2020 3Q

Amount%66,20053,597(12,603)(19.0)%

37,13028,386
1,538(855)

33,804
19,033
1,273(514)(3,326)(9,352)(265)340(9.0)%(32.9)%(17.2)%－15,183

12,494(2,688)(17.7)%

22.9%
11,869
17.9%
3,313
5.0%
2,310813
177
11
3,225
1,479
30.24

23.3%
10,834
20.2%
1,660
3.1%
1,835
(180)
22(17)
1,786
62
1.27

1(1,035)(1,653)
(474)
(993)
(155)
(29)
(1,438)(1,417)(28.97)+0.4pt(8.7)%＋2.3pt(49.9)%(1.9)pt(20.6)%－(87.3)%－(44.6)%(95.8)%(95.8)%

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

Full-year
Revised
Forecasts

YoY Change

FY2019 3Q

FY2020 3QJapan
Overseas
Oceania
EuropeAsia

38,44927,751
7,363
6,833
6,835

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

(3,399)(9,203)(1,161)(984)(3,570)(8.8)%(33.2)%(15.8)%(14.4)%(52.2)%

48,50026,500
9,100
8,900
4,800

Middle Eastand others

6,718

3,232

(3,485)(51.9)%

3,700

66,20053,597(12,603)(19.0)%

75,000¥109.15/USD¥107.55/USDTotal
Average exchange rate

Amount%¥106.76/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)
YoY Change

FY2019 3Q

FY2020 3Q

19,369
1,885
4,960
3,462

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

(2,610)806(179)(372)(13.5)%+42.8%(3.6)%(10.7)%

7,435

6,463(972)(13.1)%

37,11233,785(3,327)(9.0)%

MetersMonitor Control
Switchgears
VCTsOthers(including adjustments)

Total

Amount%*Referential figures based on managerial accounting（2）Smart meters & solutions overseas(Millions of yen)
YoY Change

FY2019 3Q

FY2020 3Q

19,576
8,090
27,666

12,665
5,951
18,617

MetersMonitor Control
Total

Amount%(6,911)(2,139)(9,049)(35.3)%(26.4)%(32.7)%*Referential figures based on managerial accounting

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

R&D expenditures
Depreciation
Capital expenditures

FY2019 3Q

FY2020 3Q

2,368
2,126
1,564

2,227
2,024
1,164

2Amount(141)
(101)
(399)

%

(6.0)%(4.8)%(25.5)%

Full-year
RevisedForecasts

3,200
2,700
2,300

5.

FY2020 Consolidated Forecast

The Company revised its full-year forecast for the fiscal year ending March 31, 2021 for thefollowing reasons.
⚫ Smart meters & solutions in Japan
Sales for smart meter are solid, whereas the energy management services are expected tofall short of the initial forecasts due to the more-than-expected impact from COVID-19 virus.
Overall profits are estimated to exceed the initial forecasts, due to better profitability fromincrease in smart meter production and cost reduction in SG&A.
⚫ Smart meters & solutions overseas
With the worldwide spread of COVID-19 virus, shipments mainly to UK and Asia are pushed
back to the following years, causing sales to fall short of the initial forecasts.
Despite cost reduction in SG&A, profits are expected to fall short of the initial forecasts due toaforementioned sales decrease and the recording of an inventory provision by a careful
examination of expected future use of parts from lower production.
⚫ As a result, Net Sales are revised downward, whereas Operating Income and Recuring
Income are revised upward since upward revision in Smart meters & solutions in Japanexceeds the downward revision in Smart meters & solutions in overseas.
(Millions of yen)

Full-year
FY2019Results

FY2020InitialForecast(A)

FY2020
Revised
Forecast(B)Difference(B-A)
Amount%Net sales

90,06980,00075,000(5,000)(6.3)%

Operating income

3,691

1,500

2,000500+33.3%

Ordinary income

3,544

1,600

2,200600+37.5%

Profit attributable toowners of parent

1,197

100

100－－

Full-year forecast figures by segment(Millions of yen)

InitialForecast
Net sales
80,000Smart meters & solutions in Japan
48,200Smart meters & solutions overseas
30,000
Others
1,800
Operating income
1,500
Smart meters & solutions in Japan
1,300
Smart meters & solutions overseas
0Others
200
Estimated impact from the COVID-19 epidemic（Included in the table above of Fiscal 2020 Forecasts）
Net sales(12,000)
Smart meters & solutions in Japan(2,000)Smart meters & solutions overseas(10,000)
Others0Operating income(2,700)Smart meters & solutions in Japan(700)
Smart meters & solutions overseas(2,000)
Others0

RevisedDifference
Forecast
75,000(5,000)47,000(1,200)26,500(3,500)1,500(300)
2,000500
2,300
1,000(300)(300)
0(200)(17,000)(3,200)(13,500)(300)(2,400)0(2,300)(100)⚫ 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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