August 6, 2024

Osaki Electric Co., Ltd.
Tokyo Stock Exchange Prime Market
Securities code: 6644

FY2024 First Quarter
Summary of Consolidated Financial Results(Three Months ended June 2024)⚫ Consolidated net sales: 21.3 billion yen (-0.3% YoY), operating income:
0.83 billion yen (-29.0%), Profit attributable to owners of parent: 0.34
billion yen (-55.0%)⚫ Net sales for Smart meters & solutions in Japan increased year on yearwith higher sales in the Switchgear Business. (Sales in the Smart meterbusiness increased slightly.)
Operating income decreased with temporary changes in the product mix
and an increase in SG&A expenses.
⚫ For Smart meters & solutions overseas, shipments to Oceania increased
steadily while shipments to the UK decreased due to inventory
adjustments by customers. As a result, both net sales and operating
income decreased.
1. Consolidated Financial Results(Millions of yen)
YoY Change

FY2023 1Q

FY2024 1Q

21,367
11,9759,581
143(334)
5,011

21,30012,4499,030
138(318)
5,102

23.5%

24.0%

3,842

4,272

18.0%

20.1%

1,169

830

Ratio to sales

5.5%

3.9%

Smart meters & solutions in Japan

1,046
5574(6)
1,380

Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
Real estate
Adjustment

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

Smart meters & solutions overseas
Real estate
Adjustment

Ordinary income
Profit attributable to owners of parent

Net income per share（yen）

Amount%

(67)
473
(550)
(5)
1590(0.3)%+4.0%(5.7)%(3.9)%－+1.8%

429+11.2%(339)(29.0)%

861(106)
740952

(184)
(161)
(0)
7(427)(17.7)%－(0.4)%－(31.0)%768345(423)(55.0)%

16.43

7.37(9.06)－1+0.5pt+2.1pt(1.6)pt

2. Revenue by Business Portfolio (Excluding intercompany sales)（1）Smart meters & solutions in Japan(Millions of yen)
YoY Change

Smart meter business
Solution BusinessSwitchgear Business
Total

FY2023 1Q

FY2024 1Q

8,334
2,494
1,141
11,970

8,372
2,580
1,489
12,443

Amount

3886
347
472%

Full-year
Revised
Forecast

+0.5%
+3.5%
+30.5%+3.9%

33,00013,0008,000
54,000*Referential figures based on managerial accounting.

Smart meter business:
Solution business:
Switchgear business:

Sale of smart meters and measurement and control equipment
including smart meter peripheral devices for power companies.
Provide services and products and deliver solutions to customers(other than power companies)
Sale of switchgears

Starting in FY2023 2Q, the reporting methods have been partially changed to reflect current sales conditions.
Consequently, the figures for FY2023 have retroactively applied this method also.

（2）Smart meters & solutions overseas(Millions of yen)
YoY ChangeOceaniaEuropeAsia
Middle East and Africa
Total
Average Exchange rate

FY2023 1Q

FY2024 1Q

3,842
3,803
1,157475
9,279

4,469
2,461
1,325
487
8,745

￥132.42/USD￥148.63/USD

Amount626(1,341)
167
12(534)%Full-year
Revised
Forecast+16.3%(35.3)%+14.5%+2.6%(5.8)%

22,00014,0004,500
2,000
42,500￥152.36/USD(assumption)*Calculations are based on the annual securities report.

３．Progress toward Business Plan (FY2024 1Q)（1）Smart meters & solutions in Japan
Progress
Smart meter businessGoodBusiness Situation
・Shipments of current smart meters remained steady.
・Production system of the second-generation smart meter isbeing constructed as planned.

Solution Business

Good・Sales of smart meters (for customers other than electric powercompanies) remained steady.
・Smart Locks failed to achieve the plan due to inventory
adjustments by customers.

Switchgear BusinessGood・Steady progress in line with firm capital investment bycompanies.

2（2）Smart meters & solutions overseas
Progress

Business Situation

Slightly

・Shipments to Australia and New Zealand remained steadily.

Oceania

good・Progressed steadily toward to the plan despite continuedGoodEurope

inventory adjustments by customers.
・Sales were firm due to factors such as the acceleration ofGood

Asiashipments.
・Failed to achieve the plan due to adjustment of shipping time.

BadMiddle East and Africa

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

FY2023 1Q

FY2024 1Q

758558
353

917
524
330

R&D expenditures
Depreciation
Capital expenditures

Amount%159(34)(23)+21.0%(6.1)%(6.6)%

5. FY2024 Consolidated Forecast
The Company revised the forecast for the six months ending September 30, 2024 andfull-year for the fiscal year ending March 31, 2025, previously announced on May 9,2024 as follows.
(Millions of yen)

1H

Full-year

YoY Change

FY2024PreviousForecast

FY2024
Revised
Forecast

AmountNet sales

41,00043,7002,700

Smart meters &Solutions in Japan

24,30024,700Smart meters &Solutions overseas

17,000Real estate

YoY Change

FY2024Previous
Forecast

FY2024
Revised
Forecast

Amount+6.6%

90,00097,000

7,000

+7.8%

400

+1.6%

53,50054,000500+0.9%19,3002,300+13.5%

37,00043,5006,500+17.6%250

250－－

600

600－

－

Adjustment

(550)

(550)

－

－

(1,100)(1,100)－－Operating income

1,000

1,500

500

+50.0%

4,700

5,000

300

+6.4%

Smart meters &solutions in Japan

450

1,050

600

+133.3%

2,600

2,900

300

+11.5%

Smart meters &Solutions overseas

400

300

(100)

(25.0)%

1,800

1,800－－

Real estate

150

150－

－

300

300

－

－

Adjustment－－－－－－－

－

1,000

1,400

400

+40.0%

3,900

4,600

700

+17.9%

300

400

100

+33.3％

2,000

2,700

700

+35.0％

4.0％

5.4％－+1.4pt

Ordinary income
Profit attributableto owners of parent%

ROE

3%

Reasons for the revision:(1) Net Sales and operating Income
For the consolidated results of the second quarter and the full fiscal year, net sales are expected
to exceed the initial forecast, because smart meter business sales for Smart meters & solutionsin Japan will exceed the initial forecast. Profits are also expected to exceed the initial forecast
because of the increased sales and restrained expenses.
For Smart meters & solutions overseas, sales are expected to increase due to a revised
exchange rate caused by depreciation of the yen, despite the business performance outlook
largely in line with initial forecasts.
(2) Ordinary Income and profit attributable to owners of parent
In order to devise effective use of management resources and improve asset efficiency, theboard of directors has approved the sale of certain land and buildings held by the real estatebusiness. Accordingly, a gain on sale of fixed assets is expected to be recorded as an
extraordinary gain for the full fiscal year.
Contemporaneous sales gains of investment securities associated with the sale of strategic
shareholdings are also expected to be recorded as extraordinary gains in the second quarterand full year.
In addition, overseas subsidiaries had budgeted business structure improvement expenses,
which were included in non-operating expenses under the initial consolidated earnings forecast
figures for the full year. After careful examination of the details of these expenses, the line item
was re-classed to extraordinary loss.

⚫ 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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