Update on Management Initiatives Focused on Capital Costs and Share Price

Current Management Status and Goals

Osaki Electric aims to achieve an ROE of 10.6% and a PBR of 1.31 times in FY2025, and recognizes the shareholder equity cost for FY2026 to be between 6.8% and 8.0%. An ROE of 8.5% is projected, with an early recovery to 10%. The PER is 12.9 times, aiming to enhance market valuation. Based on its medium-term management plan, the company is promoting structural reforms to boost profitability, improve working capital efficiency, compress non-core assets, and return value to shareholders.

Growth Strategy and Shareholder Return

The company plans to expand its smart meter business and solutions business domestically and internationally. It is also working to secure demand for the UK smart meter project and to reduce costs through organizational restructuring. Inventory reduction is targeted from 223 billion yen in FY2023 to 182 billion yen in FY2025. The dividend will be maintained at 49 yen annually, with a DOE target of 3%. Treasury stock acquisitions are scheduled to include approximately 3.96 million shares and about 4.5 billion yen over FY2024–FY2026. The company aims to allocate cash flow efficiently across investments, growth initiatives, and shareholder returns to maintain a balanced approach.