October 31, 2018

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

FY2018 First Half
Summary of Consolidated Financial Results(Six Months ended September 2018)
 Consolidated sales decreased by 2.4% year-on-year to ¥35.7 billion.
Operating income declined by 30.2% to ¥1.5 billion. Ordinary income droppedby 26.3% to ¥1.7 billion. Profit attributable to owners of parent decreased by
21.1% to ¥0.65 billion.
 Domestic demand for smart meters remains strong. However, sales volumes fell
due to inventory adjustment by some electric power companies. In addition,revenue of distribution panels declined.
 Revenue from smart meters in Australia and communications hubs in the United
Kingdom increased, but shipments to New Zealand and emerging countries
dropped. As a result, overseas sales were almost flat compared with theprevious corresponding period.
 Consolidated profits decreased due to the sales decrease as well as lower grossmargin due to change in product sales mix overseas.
 We made downward revision to our consolidated financial forecast for the fullyear. We had projected the overseas sales to expand from the second half.
However, the procurement of certain electronic components remains difficult,leading to delays in production and supply of products.
The Group is working as a whole for in advance purchasing of the electronic
components to improve product supply in overseas for the next fiscal year.
 Interim cash dividend is ¥10 per share, as originally planned, and the year-end
cash dividend is planned to be ¥10 per share.
1. Consolidated Financial Results(Millions of yen)
YoY Change
Amount%

FY2017 1H

FY2018 1H

36,55035,669(881)(2.4)%

35,86634,431(1,435)(4.0)%

Others758

1,308549+72.5%

Adjustment

(74)

(70)

4－

Gross profit

10,247

9,441(805)(7.9)%

Ratio to sales

28.0%

26.5%

8,045

7,905

Ratio to sales

22.0%

22.2%

2,201

1,536

6.0%

4.3%

2,212

1,344(867)(39.2)%

(14)

188

203－

42(1)

(28.6)%

2,263

1,667(596)(26.3)%

817645(172)(21.1)%

16.76

13.20(3.56)(21.1)%Net sales
Measurement and control equipment

SG & A expenses
Operating income
Ratio to sales
Measurement and control equipment
OthersAdjustment

Ordinary income
Profit attributable to owners of parent
Net income per share（yen）
1(1.5)pt(139)(1.7)%+0.2pt(665)(30.2)%(1.7)pt

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

FY2017 1H

FY2018 1H

28,132
8,417
3,410
1,610
2,881
515
36,55027,214
8,454
3,361
1,820
2,901
371
35,669Japan
Overseas
Oceania
EuropeAsia
OthersTotal(918)37(48)
210
20(144)(881)%(3.3)%+0.4%(1.4)%+13.0%+0.7%(28.0)%(2.4)%

3. R&D expenditures, Depreciation, Capital expenditures(Millions of yen)

FY2017 1H

FY2018 1H

1,615
1,332
1,481

1,526
1,266
856

R&D expenditures
Depreciation
Capital expenditures

FY2018
Revisedfull-year forecast

YoY Change%

Amount(89)(5.5)%(66)(5.0)%(625)(42.2)%

3,500
3,000
3.000

4. Revision of FY2018 Consolidated Full-year Forecast

We have made downward revision to the full-year forecast for the fiscal year ending March 31,
2019. Domestic performance is expected to be solid with strong demand for smart meters toremain. However, overseas sales for the second half are projected to be lower than initial
forecast. This is mainly from delays in production and supply of products due to the difficulty inpurchasing some electronic components amid the tight global demand.
In response, the Group is working on in advance purchasing of electronic components toimprove overseas product supply in the next fiscal year.
(Millions of yen)

FY2018FY2018Initialforecast（A）
86,000

Revisedforecast（B）
80,000Difference（B-A）

FY2017

Difference（B-C）

Amount%Results（C）

Amount(6,000)(7.0)%

78,7801,219+1.5%

Operating income

6,000

3,500(2,500)

5,544(2,044)

Ordinary income

6,000

3,400(2,600)(41.7)%(43.3)%

5,634(2,234)(36.9)%(39.7)%

Profit attributable toowners of parent

3,300

1,200(2,100)(63.6)%

2,666(1,466)(55.0)%Net sales%（Reference） 1H FY2018 Consolidated Results Compared to the Forecast(Millions of yen)

Forecast

Results

Net sales

37,000Operating income

Difference

Progressvs revised
full-year forecast

Amount%35,669(1,330)

44.6%

1,600

1,536(63)(3.6)%(4.0)%

Ordinary income

1,600

1,667

67+4.2%

49.0%

Profit attributable toowners of parent

60064545+7.5%53.8%

 Forward-looking

43.9%

statements made in this material is based on management’s estimates, assumptions andprojections at the time of publication and do not represent a commitment that they will be achieved. A number offactors could cause actual results to differ materially from expectations.
 All amounts are in millions of yen rounded down unless otherwise stated.
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