May 9, 2024

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

Summary of FY2023 Consolidated Financial Results(12 Months ended March 2024)⚫

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 thesecond-generation smart meter caused sales in the Smart Meter Business to decreaseslightly. Operating income increased with temporary changes in the product mix, etc.

⚫

For Smart meters & solutions overseas, sales increased year on year with an increase inshipments 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.

1. Consolidated Financial Results
FY2022
Net sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
Production equipment
Real estateAdjustment

Gross profit
Ratio to sales

SG & A expenses
Ratio to sales

Operating income

FY202389,25354,427
34,613761
571(1,121)
17,964

95,14755,266
40,693－572(1,384)22,605

20.1%

23.8%

15,737

16,730

17.6%

17.6%

2,226

5,874

(Millions of yen)
YoY Change
Amount%

5,894
838
6,079
(761)
0(262)
4,640
993

+6.6%
+1.5%
+17.6%－+0.1%－+25.8%+3.6pt+6.3%(0.0) pt

3,647

+163.8%

2.5%

6.2%

3,816
(1,886)
9295
(7)
1,885

4,4511,155－277
(9)
5,488

635
3,041(9)
(17)
(2)
3,603

+16.7%－－(5.9) %－+191.2%

Profit attributable to owners of parent

1,319

2,407

1,087

+82.4%Net income per share（yen）

27.86

51.36

23.50

－ROE

2.9%

5.0%

－+2.1pt

Ratio to sales
Smart meters & solutions in Japan
Smart meters & solutions overseas
Production equipment
Real estate
Adjustment

Ordinary income

1+3.7pt2.

Revenue by Business Portfolio (Excluding intercompany sales)（1）Smart meters & solutions in Japan
FY2020Smart meterbusiness
Solution
Business
SwitchgearBusiness

FY2021

FY2022

FY2023

YoY Change
Amount%FY2024
Forecast(Millions of yen)
Full-year Forecast
YoY Change
Amount%32,01629,42535,15334,966(187)(0.5) %

32,500(2,466)(7.1) %

10,51010,531

12,214

12,104(110)(0.9) %

13,000

895

+7.4%

5,641

6,025

7,037

8,173

1,136

+16.1%

8,000(173)(2.1) %

Total
48,16945,98354,40655,244*Referential figures based on managerial accounting.

838

+1.5%

53,500(1,744)(3.2) %

Smart meter business: Sale of smart meters and measurement and control equipment
including smart meter peripheral devices for power companies.
Solution business: Provide services and products and deliver solutions to customers (otherthan power companies)
Switchgear business: Sale of switchgears
Starting in FY2023 2Q, the reporting methods have been partially changed to reflect current sales conditions.
Consequently, the figures for FY2022 have retroactively applied this method also.

（2）Smart meters & solutions overseas
FY2020

FY2021

FY2022

FY2023

YoY ChangeAmountFY2024
Forecast%(Millions of yen)
Full-year Forecast
YoY ChangeAmount%Oceania

9,154

10,642

15,628

16,966

1,337+8.6%

17,500533+3.1%

Europe8,938

11,33910,12915,7835,653+55.8%

12,000(3,783)(24.0) %

Asia

4,882

6,041

5,800

5,049(751)(13.0) %3,500(1,549)(30.7) %Middle Eastand Africa

3,703

1,071

2,062

1,637(424)(20.6) %

3,000

1,362

+83.2%

Total

26,67829,09533,62039,436

5,815+17.3%

36,000(3,436)(8.7) %

Average
Exchange rate¥106.76/USD¥109.90/USD¥131.62/USD¥140.67/USD¥130.00/USD（assumption）*Calculations are based on the annual securities report.

3.

R&D expenditures, Depreciation, Capital expenditure

FY2022

FY2023

YoY Change
Amount%FY2024
Forecast(Millions of yen)
Full-year Forecast
YoY Change
Amount%R&D expenditures

3,233

3,529

295+9.2%

3,500(29)(0.8) %

Depreciation

2,587

2,304(282)(10.9) %2,300(4)(0.2) %

Capital expenditures

1,881

1,938

57+3.1%

4,400

2,461

+126.9%2

4.

FY2024 Consolidated Forecast(Millions of yen)

1H

Full-year

YoY ChangeYoY Change

FY2023

FY2024
Forecast

Amount%FY2023

FY2024
Forecast

Amount%44,17441,000(3,174)(7.2) %

95,14790,000(5,147)(5.4) %

25,022

24,300(722)(2.9) %

55,26653,500(1,766)(3.2) %

19,55917,000(2,559)(13.1) %40,69337,000(3,693)(9.1) %

Real estate

287

250

(37)

(13.2) %572

600

27+4.8%Adjustment

(695)

(550)

145

－

(1,384)(1,100)284－

Operating income

2,325

1,000(1,325)(57.0) %5,874

4,700(1,174)(20.0) %Smart meters &solutions in Japan

1,903

450(1,453)(76.4) %4,451

2,600(1,851)(41.6) %Smart meters &solutions overseas

276400123+44.8%

1,155

1,800644+55.8%

Real estate157

150(7)(4.8) %

277

300

22+8.1%

Adjustment

(10)

－

10－

(9)

－

9－

Ordinary income

2,415

1,000(1,415)(58.6) %5,488

3,900(1,588)(28.9) %Profit attributable toowners of parent

1,356

300(1,056)(77.9) %2,407

2,000(407)(16.9) %Net sales
Smart meters &solutions in Japan
Smart meters &solutions overseas⚫

With respect to Sales for Smart meters & solutions in Japan, sales for the Solution Businessare expected to increase, while a trough in demand pending introduction of the secondgeneration 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 tocause operating income to decrease.

⚫

With respect to Smart meters & solutions overseas, shipments to Oceania are expected toincrease, while shipments to UK are expected to temporarily decrease as a consequenceof customer-side inventory adjustments, resulting in an overall decrease in sales.
Nonetheless, stable growth in Oceania, improved profit margins from growth in the Middle
East and Africa regions, and order-taking activities with an emphasis on profitability areexpected to cause profits to increase.

35.

FY2024-2026 Mid-term Management Plan
(Millions of yen)

FY2024FY2025

FY2026

Forecast

Forecast

Forecast

Net sales

90,00095,000100,000

Japan (**)

54,00056,50060,000Overseas

36,00038,50040,000Operating income4,700

5,500

9,000

Japan (**)

2,900

2,900

5,700

Overseas

1,800

2,600

3,300

Profit attributable toowners of parent

2,000

3,500

5,500

ROE

4.0%

6.5%

10.0%

* Break down of Net Sales are external sales.
** Japan includes “Smart meters & solutions in Japan” and “Real estate”.

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.”6.
⚫

Shareholder ReturnThe Company sets basic policy to carry out the continual distribution of a steady dividend toshareholders, while providing additional performance-based dividends.

⚫

The basic policy states that the amount distributed will be based on higher of either a dividend
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 of20 yen.

⚫

For the next fiscal year, the Company plans to pay an interim dividend of 10 yen per share and10 yen of year-end dividend, resulting in annual dividends of 20 yen, the same as the currentyear.
Dividend per shareInterimYear-end

AnnualTotal amount ofdividends

Consolidated
payout ratio

FY202210 yen

10 yen20 yen942 million yen

71.8%

FY202310 yen

10 yen20 yen938 million yen

38.9%

FY2024 Forecast

10 yen

10 yen20 yen46.9%⚫ 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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