Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2024
[Japanese GAAP]May 9, 2024
Company name: Osaki Electric Co., Ltd.
Stock exchange listing: Tokyo
Code number: 6644
URL: https://www.osaki.co.jp
Representative: Chairman and CEO
Director and Managing Executive Officer
Contact:
Head of Corporate Strategy Division

Yoshihide Watanabe
Ryuichi Ueno

Phone: +81-3-3443-7171
Scheduled date of Annual General Meeting of Shareholders: June 27, 2024
Scheduled date of commencing dividend payments: June 28, 2024
Scheduled date of filing annual securities report: June 28, 2024
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes (for Institutional Investors and Analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Fiscal year ended
March 31, 2024
95,147
6.6
5,874
163.8
5,488
191.2
2,407
82.4
March 31, 2023
89,253
17.2
2,226
74.3
1,885
58.5
1,319
(Note) Comprehensive income:Fiscal year ended March 31, 2024:¥
5,393 million [63.6%]
Fiscal year ended March 31, 2023:¥
3,296 million [358.8%]
Basic earnings per Diluted earnings per Rate of return on
share
share
equityFiscal year ended
March 31, 2024
March 31, 2023

Ordinary profit tototal assets ratio

Operating profit to
net sales ratio

Yen

Yen

%

%

%

51.36
27.86

50.54
27.41

5.0
2.9

5.8
2.0

6.2
2.5

(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Net assets

Millions of yen

Millions of yen

95,641
93,268
As of March 31, 2024:
As of March 31, 2023:

Capital adequacy ratio¥¥

62,532
58,62949,609 million
45,933 million

Net assets per share

%

Yen

51.9
49.2

1,057.46
981.44(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

4,187
260

(2,895)
1,349(2,990)(5,072)

10,843
12,718―1―

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Total
dividends

Dividends
to netassetsPayoutratio(consolidated)(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

%

%

March 31, 2023

-

10.00

-

10.00

20.00

942

71.8

2.1

March 31, 2024

-

10.00

-

10.00

20.00

938

38.9

2.0

-

10.00

-

10.00

20.00

Yen Millions of yen

Fiscal year ending
March 31, 2025

46.9

(Forecast)
3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Six months ending
September 30, 2024
Full year

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

41,000

(7.2)

1,000

(57.0)

1,000(58.6)

300(77.9)

6.39

90,000

(5.4)

4,700

(20.0)

3,900(28.9)

2,000(16.9)

42.63* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No
New(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2024:
49,267,180 shares
March 31, 2023:
49,267,180 shares
2) Number of treasury shares at the end of the period:
March 31, 2024:
2,353,409 shares
March 31, 2023:
2,464,755 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2024:
Fiscal Year ended March 31, 2023:

46,876,053 shares
47,374,082 shares―2―

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating profit

Ordinary profit

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

29,65829,889

(0.8)
27.4

2,020
1,388

45.5
-

3,070
2,150

42.8
-

2,452
3,350

(26.8)-

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2024
March 31, 2023

Yen

Yen

52.32
70.72

51.48
69.58

(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Net assets

Millions of yen

57,15854,349As of March 31, 2024:
As of March 31, 2023:

Capital adequacy ratio

Millions of yen¥¥

40,96137,60540,494 million
37,139 million

Net assets per share

%

Yen

70.8
68.3

863.18793.53*Financial results are exempt from the audit conducted by certificated public accountants or an auditing firm.
*Proper use of business forecasts and other special notes
The description of the future such as business outlook made in this statement are based on the information we currently have and thecertain assumptions that we consider reasonable and any reference to future outlook does not represent commitment that it will beachieved.
The actual performance may significantly vary due to the various factors. Conditions for business forecast assumptions and a suggested
use of business forecast, please refer to the page 8, ”1.4 Consolidated Forecast”.
The Company plans to hold a briefing session for Institutional investors and Analysts on May 20, 2024. Documents of the briefing
session will be posted on our website immediately on the day of the event.

―3―

[APPENDIX]
1. Business Results

5

1.1 Highlight of Consolidated Operating Results

5

1.2 Consolidated Financial Position

6

1.3 Consolidated Cash Flows6

1.4 Consolidated Forecasts

8

1.5 Fundamental Policy Regarding Distribution of Profits9

1.6 Group Structure10

1.7 Business and Other Risks

11

2. Basic concept regarding the selection of accounting standards

13

3. Consolidated Financial Statements

14

3.1 Consolidated Balance Sheets14

3.2 Consolidated Statements of Income and Comprehensive Income

16

3.3 Consolidated Statement of Changes in Net Assets

18

3.4 Consolidated Statement of Cash Flows20

3.5 Notes to Consolidated Financial Statements

22(Notes Regarding Going Concern Assumption)

22(Significant matters forming the basis of preparing
the consolidated financial statements)

22(Changes in presentation)

27(Segment information, etc.)

28(Per Share Information)

30(Significant events after reporting period)

30

―4―

1. Business Results
1.1 Highlight of Consolidated Operating Results⚫
⚫

⚫

Consolidated net sales: 95.1 billion yen (YoY +6.6%), Operating income: 5.9 billion yen (+163.8%), Profit
attributable to owners of parent: 2.4 billion yen (+82.4%)
Net sales for Smart meters & solutions in Japan increased year on year with higher sales in the Switchgear
Business even though a trough in demand pending the introduction of the second-generation smart meter caused
sales in the Smart Meter Business to decrease slightly. Operating income increased with temporary changes in
the product mix, etc.
For Smart meters & solutions overseas, sales increased year on year with an increase in shipments to UK enabled
by an upturn in the electronic materials procurement environment and an increase in shipments to Oceania.
Operating income increased with the higher sales and setting of electronic materials prices, which had soared
previously.

Summary of Consolidated Financial Results for the Year ended March 31, 2024
(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024

YoY Change
Amount%Ordinary income

89,25354,427
34,613761
571(1,121)2,226
3,816(1,886)
9
295
(7)
1,885

95,14755,266
40,693－572(1,384)
5,874
4,451
1,155
－
277
(9)
5,488

5,894
838
6,079
(761)
0
(262)
3,647
635
3,041
(9)
(17)
(2)
3,603

+6.6%
+1.5%
+17.6%－+0.1%－+163.8%+16.7%－－(5.9) %－
+191.2%

Profit attributable to owners of parent

1,319

2,407

1,087

+82.4%Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
Production equipment
Real estate
Adjustment

Operating income
Smart meters & solutions in Japan
Smart meters & solutions overseas
Production equipment
Real estate
Adjustment―5―

1.2 Consolidated Financial Position(Millions of yen)
As of March 31, 2023

As of March 31, 2024

YoY Change

Total assets

93,26895,641

2,373

Total liabilities

34,63833,108(1,530)Net assets

58,62962,532

3,903

49.2

51.9

2.6

Capital adequacy ratio

Total assets at March 31, 2024 were 95,641 million yen, a 2,373 million yen increase from March 31, 2023. This was
mainly due to an increase in inventory by 3,233 million yen and investment securities by 2,489 million yen
respectively while cash and cash equivalents decreased by 2,035 million yen and notes and accounts receivable -tradeand contract assets decreased by 1,670 million yen.
Total liabilities were 33,108 million yen, a 1,530 million yen decrease from March 31, 2023. This was mainly due toa decrease in notes and accounts payable – trade and electronically recorded obligations – operating by 2,042 million
yen and short-term and long-term borrowings at overseas subsidiaries by 808 million yen respectively, despite anincrease in deferred tax liabilities by 941 million yen.
Net assets were 62,532 million yen, a 3,903 million yen increase from March 31, 2023. This was mainly due to anincrease in capital surplus and Valuation difference on available-for-sale securities by 1,470 million yen and 1,780
million yen respectively.

1.3 Consolidated Cash Flows
Cash and cash equivalents at the end of the period was 10,843 million yen, a 1,874 million yen decrease from the endof the previous fiscal year ended March 31, 2023.
(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024

YoY Change

Cash flows from operating activities

260

4,187

3,926

Cash flows from investing activities

1,349(2,895)(4,245)

Cash flows from financing activities(5,072)(2,990)2,082

12,718

10,843(1,874)

Cash and cash equivalents at the endof period(1) Net cash provided by operating activities
Net cash provided by operating activities for the year ended March 31, 2024 was 4,187 million yen. This was mainly
due to a recording of 5,041 million yen in income before income taxes and minority interests, 2,304 million yen in
depreciation and amortization, and decreasing of 1,459 million yen in trade receivables offset the decrease in cashfrom an increase in inventory by 3,332 million yen, decrease in trade payables by 798 million yen and a recording ofincome taxes paid in the amount of 1,727 million yen.
(2) Net cash provided by (used in) investing activities
Net cash used in investing activities for the year ended March 31, 2024 was 2,895 million yen. This was mainly due
to expenses from purchase of property, plant and equipment by 1,238 million yen and derivative transactions by 1,321
million yen.

―6―

(3) Net cash provided by (used in) financing activities
Net cash used in financing activities for the year ended March 31, 2024 was 2,990 million yen. This was mainly due
to a decrease in short-term loans payable overseas by 1,178 million yen and dividends paid to non-controlling interestin the amount of 1,553 million yen.
Cash Flow Indicators(Millions of yen)
Fiscal year ended

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

March 31, 2024

Capital adequacy ratio

49.6%

49.2%

51.9%

Capital adequacy ratio at market value

24.8%

26.7%

33.5%

2.1

29.4

1.7

15.4

1.8

24.0

Cash flow to interest-bearing debt ratio(per annum)Interest coverage ratio (times)(Notes)Capital adequacy ratio: Equity / Total assets

Capital adequacy ratio at market value: Market capitalization / Total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt / Net cash provided by operating activities
Interest coverage ratio: Net cash provided by operating activities / Interest payment* Each indicator is calculated based on the consolidated financial report.
* Market capitalization is calculated by share price at the end of year multiplied by total number of issued shares excluding treasury
stock.
* Net cash provided by operating activities is equivalent to that of consolidated statements of cash flows in the financial report foreach fiscal year. Interesting-bearing debt includes all debts with interest payments on the consolidated balance sheets as of the endof each fiscal year. Interest payments are equivalent to that of consolidated statements of cash flows for each fiscal year.

―7―

1.4 Consolidated Forecasts(1) Mid-term Management Plan
For further information about the Mid-Term Management Plan, please refer to today’s release“OSAKI Formulates
Mid-Term Management Plan and Establishes its Corporate Purpose.”(Millions of yen)
Fiscal year ended

Fiscal year ended

Fiscal year ended

March 31, 2025

March 31, 2026

March 31, 2027

Forecast

Forecast

Forecast

Net sales

90,00095,000100,000

Operating income

4,700

5,500

9,000

Profit attributable to owners of parent

2,000

3,500

5,500

ROE

4.0%

6.5%

10.0%

(2) Consolidated forecasts for the fiscal year ending March 31, 2025
(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2024
ActualMarch 31, 2025
Forecast

YoY Change
Amount%Ordinary income

95,14755,266
40,693572(1,384)
5,874
4,451
1,155
277
(9)
5,488

90,00053,50037,000600(1,100)
4,700
2,600
1,800
300
－
3,900

(5,147)(1,766)(3,693)27
284(1,174)(1,851)644
22
9(1,588)(5.4) %
(3.2) %
(9.1) %
+4.8%－
(20.0) %(41.6) %+55.8%+8.1%－(28.9) %Profit attributable to owners of parent

2,407

2,000

(407)

(16.9) %Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
Real estate
Adjustment

Operating income
Smart meters & solutions in Japan
Smart meters & solutions overseas
Real estate
Adjustment⚫

⚫

With respect to Sales for Smart meters & solutions in Japan, sales for the Solution Business are expected toincrease, while a trough in demand pending introduction of the second-generation smart meter in Fiscal 2026 is
expected to cause sales for the Smart Meter Business to decrease. The forecast decline in net sales and reverse
effect of the prior fiscal year’s temporary increase in profits resulting from changes in product mix are expected
to cause operating income to decrease.
With respect to Smart meters & solutions overseas, shipments to Oceania are expected to increase, while
shipments to UK are expected to temporarily decrease as a consequence of customer-side inventory adjustments,
resulting in an overall decrease in sales. Nonetheless, stable growth in Oceania, improved profit margins fromgrowth in the Middle East and Africa regions, and order-taking activities with an emphasis on profitability are
expected to cause profits to increase.

―8―

1.5 Fundamental Policy Regarding Distribution of Profits
The Company sets basic policy to carry out the continual distribution of steady dividends to shareholders whileproviding additional performance-based dividends.
The basic policy states that, in principle, the amount distributed is higher of either a dividend payout ratio of 30% or
2% of DOE (dividend on equity).
With the goal of increasing capital efficiency, we continuously evaluate the share buy-back option while taking suchfactors as cash on hands, working capital, financial performance and stock price trend, and investment opportunities
into consideration.
As part of our drive to increase our long-term growth in corporate value, we apply retained earnings towards R&D
investments and capital expenditures that will increase our competitiveness. We also aim to use retained earnings
effectively towards M&A and other business opportunities aimed at increasing earnings.
The year-end dividend outlook for the current year is 10 yen per share, and annual dividends of 20 yen. For the next
fiscal year, the Company plans to pay an interim dividend of 10 yen per share and 10 yen of year-end dividend,
resulting in annual dividends of 20 yen, the same as the current year.

―9―1.6 OSAKI ELECTRIC Group Structure―10―1.7 Business and Other Risks
The following are the potential major risks that management recognizes as having a material impact on the financial
position, results of operations and cash flows of the consolidated companies in the matters related to businessconditions, accounting conditions, etc. described in the summary of financial results.
(1) Market fluctuations
Market fluctuations for the products OSAKI and its group companies provide are caused by various factors such aspolitical and economic conditions of the regions in subject or government policies. In addition, product demand isaffected by major customers’ financial performance or business and investment plans.
Smart meters, which are the Group's mainstay products, are replaced periodically under regulations. For example,
the Measurement act in Japan sets at 10years for the verification period (or the usable period) of smart meters.
Overseas, while usable periods and regulations differ by countries and regions, periodic replacements of smart meters
are often required. As a result, demand fluctuations occur in accordance with cyclical periods of replacements which
in turn, affect the financial positions and operations of the Group.
To encounter the aforementioned risks, the Group is expanding its business not only in Japan but also in Oceania,
Europe, and other emerging countries to disperse the impact of market fluctuations. In addition, the Group is working
to stimulate demand by launching new products and adding additional functions, and to cultivate new customers.
While we are working to disperse the impact of fluctuations in demand, significant fluctuations in demand could
affect the Group's performance.
(2) Price competition
The smart meter industry is highly competitive both in and outside of Japan, and pricing is one of the most importantfactors in sustaining competitive positions. To avoid price competition, the Group selects markets where quality,
safety and added value are appreciated, as well as committing to enhance product competitiveness. However, if prices
decline significantly or large quantities of products are sold at lower than anticipated prices, the Group's performance
will be negatively impacted.
(3) Supply chain risks
a. Procurement of parts and materials
The Group implements specification changes of smart meters to improve functionality and quality, as well as reducing
costs. Therefore, procurement of parts and materials is carefully planned to maintain appropriate inventory levels
while responding to specification changes of smart meters, order forecasts and procurement lead-time.
However, insufficient supply capacity amid tight demand for materials could adversely influence the Group’s
manufacturing operations. This risk is currently evident due to the worldwide shortage of semiconductors. In addition,changes in customer requests may lead to inventory retention of disused parts and materials. Due to theaforementioned factors, the Group’s performance may be affected.
b. Cost of parts and materials
The Group is committed to purchase parts and materials at appropriate prices. However, supply and demandconditions and inflation present a persistent risk of price increases for components like semiconductors and metals.
In addition, higher logistics costs due to rising crude oil prices and forex fluctuations may adversely affect profit
margins if these costs are unable to be fully compensated by selling products at appropriate pricing.
(4) Overseas business
The Group’s oversea business operations are mainly in Oceania, Europe, and other emerging countries. Overseas
sales accounted for approximately 40% of the consolidated net sales for the year ended March 31, 2024. The overseas
business comprises a pillar of mid- to long-term growth. Because the Group is placing efforts on profit-oriented
business expansion, markets and customers are under review from time to time in accordance with the latest risk
―11―

information. In response to reducing risks, the Group operates production at multiple sites, including outsourcing,across multiple countries.
Overseas business, however, are constantly exposed to geopolitical risks such as political and economic conditions,conflict and terrorism, as well as uncertainty regarding laws, regulations and systems. Therefore, unexpected changes
in the market or delays in projects, delays in production and shipments may adversely affect the Group’s operations
and financial positions.
(5) Fluctuations in foreign exchange and interest rates
Fluctuations in foreign currency exchange rates affects the Group’s assets, liabilities, and income of overseas
subsidiaries. The Group engages in hedging transactions to reduce the impact of foreign exchange fluctuations, butsudden fluctuations in foreign exchange rates may affect the Group's performance and financial position.
(6) Quality of products and services
The Group manufactures or outsources production based on a predetermined level of quality control. A strict quality
control system has been established to ensure that anomalies or malfunctions in products are detected before
shipments. However, in case anomalies or malfunctions occur in the future, the Group's performance would be
affected in the event of a product recall, replacement, or compensation for damages.
(7) Research and development
OSAKI Group is strengthening R&D aimed at heightening product and service competitiveness. While the Group
works diligently to collect necessary information in a timely manner for quick decisions, and respond flexibly tochanges in the focus areas of technologies, there remains risks of slow response to the technology demand due todelay in development processes and shortages in researchers. The Group also recognizes the risks of the intellectual
properties be invaded. Likewise, the Group also recognizes the risks of unintentionally invading a third party’s
intellectual properties which may cause claims for compensation or legal actions against the Group. In such cases,
the Group’s financial position is potentially affected.
(8) Sustainability
OSAKI Group recognizes that risks and opportunities related to sustainability is an important management issue. In
response, the Group established the Sustainability Promotion Committee to promote a group-wide action to solve
material risks and explore opportunities.
However, delays in responding to these risks could affect the Group's medium-to long-term performance.
(9) Risks associated with human resources
OSAKI Group recognizes that to carry out the mid-to-long term business strategies successfully, personnel resourcesand development is important. The Group recruit personnel freshly out of schools or seasoned personnel whileproviding various training programs. At the same time, the Group puts in efforts to provide personnel systems thatare fair and rewarding and to improve the work environment for all employees.
However, competitive environment in recruitment and a decrease in working population in Japan, may lead to a lackof necessary personnel in carrying out the aforementioned business strategies, affecting the Group’s performance asa result.
(10) Risks Associated with Disasters
Natural disasters such as earthquakes and typhoons, and floods, accidents such as fires, infectious diseases and otherunpredictable factors may delay or suspend production or shipments for a long period of time and may adversely
affect the Group’s business operations and financial conditions.

―12―

2. Basic concept regarding the selection of accounting standards
The Group uses Japanese standards for accounting, taking into consideration the comparability of time-series andcross-sectional comparability of the consolidated financial statements.
Meanwhile, regarding the adoption of the International Financial Reporting Standards (IFRS), we intend to address
the matter appropriately, factoring in various conditions in Japan and overseas.

―13―

3.Consolidated Financial Statements
3.1 Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Deposits paid
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods

9,171
4,611

7,135
3,717

20,495

18,825

7,775

10,331Work in process
Raw materials and supplies

2,673
8,626

2,747
9,230

Other
Allowance for doubtful accounts

3,778
(514)

3,936
(460)

Total current assets

56,61855,464

22,160(13,820)

22,330(14,350)

8,339

7,979

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles

15,993

15,829

Accumulated depreciation(13,152)(13,396)

2,841

2,432

Land

Machinery, equipment and vehicles, net

12,09012,099Leased assets
Accumulated depreciation

3,389(1,866)

3,413(2,036)

Leased assets, net

1,523

1,376

Construction in progress
Other

74
7,418

186
7,527

(6,783)(6,855)

634

672

Accumulated depreciation
Other, net

25,502

24,746

Intangible assets
Investments and other assets

Total property, plant and equipment

735

783

Investment securities
Retirement benefit asset

5,660
1,571

8,149
2,201

Deferred tax assets
Other

1,412
1,770

1,275
3,025

Allowance for doubtful accounts

(3)

(4)

Total investments and other assets

10,412

14,64736,64940,177

93,26895,641

Total non-current assets
Total assets―14―

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

8,172
3,799

7,071
2,857

Short-term borrowings
Income taxes payable

2,864
904

1,874
786

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on liquidation of subsidiaries
and associates
Provision for product warranties

1,543

1,676

39

107

14

-

576

462

Other

7,092

7,361

Total current liabilities

25,00822,197Long-term borrowings
Lease liabilities
Provision for retirement benefits for directors (andother officers)
Provision for repairs

2,642
1,516

2,823
1,719

47

52

28

52

Retirement benefit liability
Deferred tax liabilities

2,404
2,209

2,347
3,151

Non-current liabilities

Other

781

763

9,630

10,91034,63833,108

Share capital
Capital surplus

7,965
8,759

7,965
8,762

Retained earnings
Treasury shares

26,033(1,254)27,503(1,198)

Total shareholders' equity

41,50343,034

1,423

3,203

2,510
496

2,521
850

4,430

6,575

Share acquisition rights
Non-controlling interests

466
12,228466
12,456

Total net assets

58,62962,532

93,26895,641

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Total liabilities and net assets―15―3.2 Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Net sales
Cost of sales

89,25371,28895,14772,542Gross profit

17,96422,605

Selling, general and administrative expenses

15,737

16,730Operating profit

2,226

5,874

Non-operating income
Interest income

2136

Dividend income
Gain on sale of investment securities

229
98

277
14

Other

166

155

Total non-operating income

516

483

Interest expenses
Foreign exchange losses

147
586

172
563

Other

124

133

Total non-operating expenses

858

870

1,885

5,488

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

327-

Gain on sale of shares of subsidiaries and associates

1,957

-

Total extraordinary income

2,284

-

Extraordinary losses
Impairment losses

-

213

580

233

14

-

595

447

Profit before income taxes

3,574

5,041

Income taxes - current
Income taxes - deferred

1,346
25

1,585
207

Total income taxes

1,371

1,793

Profit

2,202

3,248

882

840

1,319

2,407

Loss on sale of shares of subsidiaries and associates
Provision for loss on liquidation of subsidiaries andassociates
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent―16―

Consolidated Statements of Comprehensive Income(Millions of yen)
For the fiscal year
ended March 31, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

For the fiscal year
ended March 31, 2024

2,202

3,248

303
843

1,780
10

(52)

354

1,094

2,144

Comprehensive income

3,296

5,393

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

2,413

4,552

882

840

Total other comprehensive income―17―3.3 Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodBalance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period7,965

CapitalsurplusRetainedearnings

8,750

25,670Treasuryshares(487)

Total
shareholders'equity41,900

(957)

(957)

1,319

1,319

8

(847)

(847)

80

88

-

8

362

(767)

(397)

7,965

8,759

26,033(1,254)41,503

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasureme accumulateddifference on
currency
nts of defined
otheravailable-for- translation
benefit plans comprehensiv
sale securities adjustmente income

Shareacquisitionrights

Noncontrollinginterests

509

11,865

1,119

1,667

549

3,336

Total net
assets57,611

(957)
1,319
(847)
88
303

843

(52)

1,094

(42)

363

1,414

303

843

(52)

1,094

(42)

363

1,017

1,423

2,510

496

4,430

466

12,22858,629―18―

For the fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodBalance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period7,965

CapitalsurplusRetainedearnings

8,759

26,033

Treasuryshares(1,254)

Total
shareholders'equity41,503

(937)

(937)

2,407

2,407

3

(0)

(0)

56

60

-

3

1,470

56

1,530

7,965

8,762

27,503(1,198)43,034

Accumulated other comprehensive income
Total
Valuation
Foreign
Remeasureme accumulateddifference on
currency
nts of defined
otheravailable-for- translation
benefit plans comprehensiv
sale securities adjustmente income

Shareacquisitionrights

Noncontrollinginterests

466

12,228

1,423

2,510

496

4,430

Total net
assets58,629

(937)
2,407
(0)
60
1,780

10

354

2,144

-

227

2,372

1,780

10

354

2,144

-

227

3,903

3,203

2,521

850

6,575

466

12,45662,532―19―

3.4 Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended March 31, 2023
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31, 2024

3,574

5,041

Depreciation
Impairment losses

2,587
-

2,304
213

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

(44)
(251)

(64)
(314)

Interest expenses
Decrease (increase) in trade receivables

147(3,421)172
1,459

Decrease (increase) in inventories
Increase (decrease) in trade payables(2,593)
1,982(3,332)
(798)

(71)
127

112
(114)

4

4

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset

(10)

66

(75)
(122)

(57)
(119)

Increase (decrease) in provision for repairs
Loss (gain) on sale of non-current assets

7
(311)

24
6

28

85

(1,376)

233

Loss on retirement of non-current assets
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sale of investment securities

(98)

(14)

Other, net

924

861

Subtotal

1,006

5,773

Interest and dividends received
Interest paid

252
(147)

315
(174)

Income taxes paid

(851)

(1,727)

Net cash provided by (used in) operating activities

260

4,187

(1,443)671(1,238)
148

(211)
99

(313)
42

-

(1,000)1,000

Expenses from derivative transactions
Payments for sale of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from sale of shares of subsidiaries resulting
in change in scope of consolidation
Other, net(1,396)(1,321)

-

(114)

3,638

-

(7)

(100)

Net cash provided by (used in) investing activities

1,349(2,895)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Payments for long-term deposits paid
Proceeds from long-term deposits―20―

(Millions of yen)
For the fiscal year
ended March 31, 2023
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

For the fiscal year
ended March 31, 2024

2,812

(1,178)2,632(7,909)-

Repayments of lease liabilities
Purchase of treasury shares

(284)
(847)

(258)
(0)

Dividends paid
Dividends paid to non-controlling interests
Proceeds from share issuance to non-controllingshareholders
Other, net

(957)
(528)

(937)
(616)

10

-

0

-

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(5,072)(2,990)

845

(176)

(2,616)(1,874)

Cash and cash equivalents at beginning of period

15,335

12,718Cash and cash equivalents at end of period

12,718

10,843

Proceeds from long-term borrowings
Repayments of long-term borrowings―21―

3.5 Notes to Consolidated Financial Statements(Notes Regarding Going Concern Assumption)
There are no applicable matters.
(Significant matters forming the basis of preparing the consolidated financial statements)
1. Scope of consolidation
Number of consolidated subsidiaries: 24
Names of Principal Consolidated Subsidiaries
ENEGATE CO., LTD
OSAKI United International Pte., Ltd.
Four companies have decreased due to the sale of overseas subsidiaries
2. Application of equity method
Unconsolidated company name even though it holds not less than 20 percent and not more than 50 percent of thevoting rights in another company.
Tohoku Electric Meter Industry Co., Inc.
(the reason that the equity method is not applied)
It is clear that the Company will not be able to exercise significant influence over the determination of the company's
financial and operating or business policies based on an agreement with the parent company of the company.
3. Fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, the fiscal year-end date of 15 consolidated subsidiaries including Osaki UnitedInternational Pte., Ltd. is December 31. In preparing the consolidated financial statements, the Company uses thefinancial statements as of that date, and makes necessary adjustments for significant transactions which occurred
between their fiscal year-end date and the consolidated fiscal year-end date―22―

4.Accounting policies(1) Valuation standards and methods for significant assets
1) Inventories(a) Merchandise and finished goods
The Company and its domestic consolidated subsidiaries mainly adopt at acquition cost using moving averagemethod or total average method (asset values on the balance sheet are calculated by the book value write-down
method based on decreased profitability). In addition, Build-to-order products are stated at acquisition cost using
the specific identification method. Overseas consolidated subsidiaries primarily use the first-in, first-out cost
method (asset values on the balance sheet are calculated by the book value write-down method based on decreased
profitability).
(b) Work in process
The Company and its domestic consolidated subsidiaries mainly adopt at acquition cost using moving averagemethod or total average method (asset values on the balance sheet are calculated by the book value write-down
method based on decreased profitability). In addition, Build-to-order products are stated at acquisition cost using
the specific identification method.
(c) Raw materials and supplies
The Company and its domestic consolidated subsidiaries mainly adopt at acquition cost using moving averagemethod or total average method (asset values on the balance sheet are calculated by the book value write-down
method based on decreased profitability). In addition, Build-to-order products are stated at acquisition cost using
the specific identification method. Overseas consolidated subsidiaries primarily use the first-in, first-out cost
method (asset values on the balance sheet are calculated by the book value write-down method based on decreased
profitability).
2) Securities(a) Securities to be held to maturity
Stated at Amortized cost method (straight-line method)(b) Available-for-sale securities
Securities other than shares that do not have a market value
Stated at Fair value method (with the entire amount of valuation differences inserted directly into net assets,
and the cost of sales calculated using the moving average method)
Shares that do not have a market value
Stated at Moving average cost method.
3) Derivatives
Stated at fair value method.
(2) Depreciation and amortization methods for significant depreciable and amortizable assets
1) Property, plant and equipment (excluding leased assets)
The Company and domestic consolidated subsidiaries adopt the declining balance method (however, the straightline method is applied for buildings (excluding facilities) acquired on or after April 1, 1998, and for facilities
attached to buildings and for structures acquired on or after April 1, 2016). Foreign consolidated subsidiaries adopt
the straight-line method. In addition, the useful life is determined mainly based on the standards set by the
Corporation Tax Law.

―23―

2) Intangible assets (excluding leased assets)
The straight-line method is applied. In addition, the useful life of internally used software is based on determineduseful life internally (5 years).
3) Leased assets
Leased assets related to finance lease transactions with the right of ownership transferred
The depreciation method is the same as that applied for owned non-current assets.
Leased assets related to finance lease transactions with the right of ownership not transferred
The depreciation method is the straight-line method that sets the lease period as the service life and the residual
value as zero. The financial statements of overseas consolidated subsidiaries are prepared in accordance with
International Financial Reporting Standards (IFRS). IFRS No. 16 “Leases” (hereinafter IFRS No. 16) has been
applied. Regarding the lease lessee, in principle all leases are recorded as assets and liabilities on the balance
sheets, and the straight-line method is used for depreciation of the capitalized right-of-use assets.
(3) Recognition criteria for significant allowance and provision
1) Allowance for Doubtful Accounts
To reserve against write-off losses for receivables, estimated uncollectable amounts are recorded according tohistorical write-off experience for general receivables and collection potential for individual receivables withspecific write-off concerns.
2)Provision for Bonuses
A provision is recorded on the basis of expected disbursement amounts in order to prepare for payment of
employee bonuses.
3) Provision for Directors’ Bonuses
A provision is recorded on the basis of expected disbursement amounts in order to prepare for payment of director
bonuses.
4) Provision for Loss on Liquidation of Subsidiaries and Associates
A provision is recorded on the basis of expected disbursement amounts in order to prepare for future losses to be
incurred in connection with liquidation of business of subsidiaries and associates.
5) Provision for Product Warranties
A provision is recorded for estimated future payments to be made for compensation expenses related to products
and services sold.
6) Provision for Directors’ Retirements Benefits
The disbursement required is recorded in accordance with internal rules in order to prepare for retirement benefits
disbursed to directors.
7) Provision for Repairs
A provision is recorded to this consolidated fiscal year in order to prepare for expenses of the scheduled
maintenance for owned facilities.
(4) Accounting methods for related to retirement benefits
1) Method of attributing expected retirement benefits to periods
In calculating retirement benefit obligations, the benefit formula basis is used as the method for attributing the
expected retirement benefits to the periods until the end of the current fiscal year.
―24―2)Method of amortization of actuarial gains and losses
Actuarial gains and losses are calculated by the straight-line method based on the number of years (10 years)
within the average remaining service period of employees at the time of occurrence for each consolidated fiscal
year from the next consolidated fiscal year. Actuarial gains and losses of certain consolidated subsidiaries are fully
expensed when it occurs.
3) Adoption of simplified accounting method by small enterprises, etc.
Certain consolidated subsidiaries apply a simplified accounting method to calculate net defined benefit liability
and retirement benefit expenses, which uses the retirement benefit obligation as the amount that would be required
if all employees voluntarily terminated their employment at the end of the fiscal year.
(5) Recognition criteria for significant revenue and expenses
The Group recognizes revenue based on the following five-step approach:
Step 1: Identify Contracts with Customers
Step 2: Identify Performance Obligations in the Contracts
Step 3: Calculate the Transaction Price
Step 4: Allocate the Transaction Price to Performance Obligations in the Contract
Step 5: Recognize Revenue when the Company Satisfies Performance Obligations
The Company manufactures and sells watt-hour meters and distribution panels etc., and for such product sales, it
is determined that the performance obligation will be satisfied because the customer obtains control over the
product at the time of delivery of the product, and we recognize the revenue.
However, for domestic sales of goods or products, revenue is recognized at the time of shipment except for some,because the period from the time of shipment to the time when control of the goods or products is transferred tothe customer is normal.
For construction contracts, revenue is recognized over a period of time as performance obligations are satisfied.
The measurement of progress related to the satisfaction of performance obligations are based on the percentage
of construction costs incurred by the end of each reporting period to total expected construction costs. If the degreeof progress cannot be reasonably estimated, revenue is recognized on a cost recovery method only for the portionof costs incurred that is expected to be recovered.
The Company applies alternative treatment for construction contracts with very short construction period andrecognizes revenue when the Company fully satisfies its performance obligations rather than recognizing revenue
over a period of time.
Revenue is recognized for the consideration promised in contracts with customers, net of discounts, rebates andreturns.
In addition, for buy-sell transactions, the Company does not recognize revenue on the transfer of the goods to be
paid, and does not recognize any extinguishment of such assets because the Company is substantially obligation
to repurchase the goods to be paid, and it is recognized as inventory.

―25―

(6) Translation criteria of the significant monetary assets and liabilities denominated in foreign currencies to JapaneseyenForeign currency-denominated monetary receivables and payables are translated into yen at the spot exchange
rate on the consolidated closing date, and the translation difference is treated as profit or loss. Assets and liabilities
denominated in foreign currencies are translated into Japanese yen at the rates of exchange in effect at the balance
sheet date, and the differences arising from translation is recognized as gains and losses. Assets and liabilities ofoverseas subsidiaries are translated into Japanese yen at the spot exchange rate on the balance sheet date of therelevant subsidiaries and others. Revenues and expenses are translated into Japanese yen at the average exchange
rate for the period. Translation differences are included in foreign currency translation adjustments and noncontrolling interests in net assets.
(7) Significant hedge accounting
1) Hedge accounting method
For interest rate swaps, if the requirements for special treatment are met, it is adopted. When an interest rate swaps
meet certain conditions, the net interest amount to be paid or received under the contract is recognized as special
treatment.
2) Hedge instruments and hedged items(Hedge instruments) Interest rate swaps(Hedge items) Interest on loan payables
3) Hedging policy
The Group Companies enter into interest rate swaps to hedge interest rate risk of loan payment and identify hedge
items on a contract-by-contract basis.
4) Hedge effectiveness assessment method
Assessment of effectiveness is omitted if the criteria for special treatment of interest rate swaps are met.
(8) Method and period for amortization of goodwill
Goodwill is amortized using the straight-line method over an estimated period of 10 years or less during which
its effect is realized.
(9) Scope of cash and cash equivalents in consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, demand deposits and short-term highly liquid investmentswith a maturity of three months or less when purchased which can easily be converted to cash and are subject tolittle risk of change in price.

―26―

(Changes in presentation)(Consolidated Statement of Income)The amount of “Subsidy income”, which was independently presented under “Non-operating income” in the previous
fiscal year, has been included in “Other” due to decreased under 10/100 of total "Non-operating income".
As a result, JPY46 million presented as "Subsidy income" in "Non-operating income " for the previous fiscal year
has been absorbed by “Other”. “Other” has been changed from JPY120 million to JPY166 million.

―27―

(Segment information, etc.)
1 Overview of reportable segments
The reportable segments of the Company are components of the Company and its consolidated subsidiaries for which
discrete financial information is available and regularly reviewed by the Board of Directors to make decisions aboutallocation of managerial resources and to assess their performance. The business of the Company and its consolidated
subsidiaries is divided into the following three categories.
Osaki Engineering Co., Ltd., which had been classified as "Production equipment business" in the reportable segment
was sold and excluded from the scope of consolidation on September 30, 2022 in the previous consolidated fiscal
year. As a result, "Production equipment business" has been abolished from current consolidated fiscal year.
Reportable Segment

Main products and services

Smart meters & solutions in Japan

Smart meters, Instrument VCT, Energy solutions, Switchgear

Smart meters & solutions overseas

Smart metering solutions

Real estate

Real estate leasing

2. Calculation methods for net sales, profit or loss, assets, liabilities and other items by reportable segment
The accounting methods used for reportable segments are the same as those discussed under “Significant mattersforming the basis of preparing the consolidated financial statements.” Segment profit figures are based on operating
profit.
Inter-segment sales and transfers are based on prevailing market prices. It should be noted that the Company doesn’t
allocate assets to reportable segment.

―28―

3. Sales, Profits or Losses, Assets, Liabilities and Other items by Reportable Segments
Fiscal year ended March 31, 2023
(Millions of yen)
Adjustment

Reportable Segments

Consolidated(Remark 2)

Smart meters& solutionsin Japan

Smart meters& solutions
overseas

Production
equipment(Remark 1)

Real estate

Sales to Customers

54,406

33,620759

466

89,253―89,253

Intersegment Sales

21

992

1

105

1,121

(1,121)―

Total Sales

54,427

34,613761

571

90,374(1,121)

89,253Operating Income

3,816(1,886)

9

295

2,234

(7)

2,226

Total

(Remarks)
1 “Production equipment” have indicated the business performances during the fiscal year ended 30 Sep 2022.
2 The operating income is adjusted by the elimination of the intersegment transactions.

Fiscal year ended March 31, 2024
(Millions of yen)
Adjustment

Reportable Segments

Consolidated(Remark 1)
Smart meters& solutions in
Japan

Smart meters& solutions
overseas

Real estate

Sales to Customers

55,24439,436466

95,147―

95,147

Intersegment Sales

22

1,256

105

1,384

(1,384)―

Total sales

55,266

40,693572

96,531(1,384)

95,147

Operating Income

4,451

1,155

277

5,884

(9)

5,874

Total

(Remarks)
1. The operating income is adjusted by the elimination of the intersegment transaction.
2.“Smart meters & solutions overseas” recognized Impairment losses by JPY213 million under
Extraordinary losses.

―29―

(Per Share Information)
Fiscal year ended Mar 31, 2023

Fiscal year ended Mar 31, 2024

Net assets per share¥981.44¥1,057.46

Basic earnings / loss per share¥27.86¥51.36

Diluted earnings per share¥27.41¥50.54(Remark)
1. The followings are basis of calculation of basic earnings/loss per share and diluted earnings per share.

Profit/loss attributable to owners of parent (millions of yen)Amount non-attributable to common stockholder (millions of yen)
Profit/loss attributable to owners of parent for common share

Fiscal year ended

Fiscal year ended

Mar 31, 2023

Mar 31, 2024

1,319

2,407

―

―

1,319

2,407

47,37446,876

―

―

780

762

―

―

(millions of yen)
Average number of shares during the period of common share(thousands of shares)
Profit adjustment attributable to owners of parent used to calculate
the diluted earnings per share (millions of yen)
Number of increase common share used to calculate the diluted
earnings per share (thousands of shares)
Stock compensation type share acquisition rights
Overview of dilutive share excluded from the calculation of diluted
earnings per share due to non-dilutive effect(Significant events after reporting period)
There is no related information.

―30―