May 14, 2019

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

FY2018（Fiscal year ended March 31, 2019）
Summary of Consolidated Financial Results
 Consolidated sales increased by 4.2% year-on-year to ¥82.1 billion. Operating
income declined by 22.5% to ¥4.3 billion. Profit attributable to owners of parent
decreased by 32.2% to ¥1.8 billion.
 Sales in Japan failed to reach the previous year’s outstanding level, despite high demand
for smart meters and the completion of inventory adjustment by electric power companies
in the latter half of the fiscal year.
 Overseas sales increased mainly due to expanded smart meters sales in Australia,
new projects in Middle East and an increase in the communications hubs sales in theUnited Kingdom.
 Consolidated profits declined due to a higher cost to sales ratio in overseas
associated with delays in production caused by shortages of certain electronic
components, as well as from changes in the product sales mix.
 Consolidated forecast for FY2019 is 92 billion yen (12.1% increase year on year) in
net sales, 4.3 billion yen (0.0% increase year on year) in operating income, and 1.6
billion yen (11.4% decrease year on year) in profit attributable to owners of parent.
 The Company announced Mid-term Management Plan covering a five-year period
through FY2019 to FY2023 to achieve minimum targets of an 8 billion in operating
income and an 8% of ROE in FY2023.
 The Company plans to pay year-end dividend of 10 yen per share (annual dividends willbe 20 yen per share, and consolidated payout ratio will be 54.1%). Dividends for the next
fiscal year are expected to remain at 20 yen per share per annum.

1. Consolidated Financial Results(Millions of yen)

FY2017

Net sales

YoY Change
Amount%

FY201878,78082,0893,308+4.2%

Measurement and control equipment

76,94780,239

3,291

+4.3%

Others

1,977

2,152

175

+8.9%

Adjustment

(144)

(302)

(157)

―

21,97920,264(1,715)(7.8)%

27.9%

24.7%

―

(3.2)pt

16,435

15,965(469)(2.9)%

20.9%

19.4%

―

(1.5)pt

5,544

4,299

(1,245)(22.5)%

7.0%

5.2%

―(1.8)pt

5,330

3,999(1,331)(25.0)%

206

29488+42.7%

85(2)(28.6)%

Ordinary income

5,634

4,293

(1,341)(23.8)%

Profit attributable to owners of parent

2,666

1,806(859)(32.2)%Net income per share（yen）

54.63

36.95

(17.68)(32.4)%

ROE

5.8%

3.8%

―(2.0)pt

Gross profit
Ratio to sales

SG & A expenses
Ratio to sales

Operating income
Ratio to sales
Measurement and control equipment
OthersAdjustment

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

FY2017

YoY Change
Amount%

FY2018FY2019Forecast

YoY Change
Amount%Japan

59,92757,735(2,192)(3.7)%

55,000(2,735)(4.7)%

Overseas

18,852

24,3535,501+29.2%

37,00012,646+51.9%

Oceania

7,807

9,522

1,714+22.0%

10,500977+10.3%

Europe

3,858

4,449

590

+15.3%

14,50010,050+225.9%

Asia

6,168

7,086

918

+14.9%

6,500(586)(8.3)%

Others

1,017

3,295

2,277

+223.8%

5,500

2,204

+66.9%

78,78082,089

3,308

+4.2%

92,0009,910+12.1%

Total
Average exchange rate

¥81.26/SGD ¥110.43/USD¥110.43/USD(Exchange rate assumption)

3. R&D expenditures, Depreciation, Capital expenditures(Millions of yen)
YoY Change
Amount%

FY2019YoY Change
Amount%

FY2017FY2018R&D expenditures

3,398

3,059(339)(10.0)%

3,200140+4.6%

Depreciation

2,820

2,634(185)(6.6)%

3,400765+29.0%

Capital expenditures

3,030

2,208(821)(27.1)%

4,000

1,791+81.1%

Forecast

4. FY2019 Consolidated Forecast(Millions of yen)

1H

YoY Change

Full-year
FY2019FY2018YoY Change

FY2018FY2019Net sales

35,66942,0006,330+17.7%

82,08992,0009,910+12.1%

Operating income

1,536

1,500(36)(2.3)%

4,299

4,3000+0.0%

Ordinary income

1,667

1,300(367)(22.0)%

4,293

3,900(393)(9.2)%

Profit attributable toowners of parent

645

350(295)(45.7)%

1,806

1,600(206)(11.4)%

Forecast

Amount%Forecast

Amount%Japan
The installation of smart meters is expected to complete by FY2023, leading to a gradual decreasein demand for smart meter shipment over the next five years.
The Company expects a decrease in sales and profits in Japan due to a decline in smart meter
demand and more competition. However, the Company plans to expand its solution businesses inJapan including energy management related products and services, Automated Meter Reading
services, and smart locks for rental apartments.
Overseas
The business momentum is expected to be strong with a robust increase in smart meter demandmainly in Australasia, UK and the Middle East regions. The Company has concluded supply
contracts with major customers, and expects an increase in sales and profits. OSAKI will reinforce
its manufacturing framework, such as streamlining systems of group procurement, in response tothe strong product demand.

2

5. FY2019-2023 Mid-term Management Plan
(Millions of yen)

FY2019 Forecast

FY2020 Target

FY2021 Target

Net sales

92,000100,000

105,000

Operating income

4,300

5,000

6,000

Profit attributable toowners of parent

1,600

2,000

3,000

ROE

3.3%

4.0%

6.0%

FY2023 Image

8,000 (minimum)

8.0% (minimum)

Please refer to "OSAKI ELECTRIC establishes Mid-term Management Plan 2023" released
today for details.

6. Shareholder Return

The Company sets basic policy to carry out the continual distribution of a steady dividendto shareholders, while providing additional performance-based dividends.

The basic policy states that the amount distributed will be based on higher of either adividend payout ratio of 30% or 2% of DOE (dividend on equity).

The year-end dividend outlook for the current year is 10 yen per share, and annual
dividends of 20 yen. (Consolidated payout ratio will be 54.1%)

For the next fiscal year, the Company plans to pay an interim dividend of 10 yen per shareand 10 yen of year-end dividend, resulting in annual dividends of 20 yen, the same as thecurrent year. (Consolidated payout ratio will be 61.1%)
Dividend per share
InterimYear-end

AnnualTotal amount ofdividends

Consolidated
payout ratio

FY2017

10 yen

10 yen20 yen976 million yen

36.6%

FY201810 yen

10 yen20 yen978 million yen

54.1%

FY2019 Forecast

10 yen

10 yen20 yen61.1%

 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 causeactual 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/ja/ir/finance/financialdata.html).

3