Citizen Watch : FY2023 Presentation

Earning Presentation

for the Year ended March 31, 2023

May 13, 2024

Index

Financial Results for FY 2023	４
Financial Results for 4Q(Jan.-Mar.) of FY 2023	7
FY 2024 Forecasts	15
Medium-term Management Plan 2024 (FY2022-FY2024)Activities	18

2

Financial Results for FY 2023

3

Financial Results for FY 2023

	FY2022
	1-4Q
	(Apr-Mar)
（Unit：billion yen)	Result
Net sales	301.3
Operating profit	23.7
Operating margin	7.9%
Ordinary Profit	29.0
Profit attributable to	21.8
owners of parent

¥135/USD

Exchange rate

¥141/EUR

FY2023

1-4Q

(Apr-Mar)

Result

312.8

25.0

8.0%

30.8

22.9

¥144/USD ¥156/EUR

YoY Change

Amount	％
+ 11.4	＋ 3.8%
+ 1.3	＋ 5.7%
-	-
+ 1.7	＋ 5.9%
+ 1.1	＋ 5.1%

• Sales and Profits increased, reflecting continuing growth in the mainstay Watches segment

4

Financial results by Business Segments

			FY2022	FY2023
	Net sales	1-4Q(Apr-Mar)	1-4Q(Apr-Mar)	YoY Change
	(Unit：billion yen)	Result	Result	Amount	％
	Watches	150.0	166.2	+ 16.2	＋ 10.8%
	Machine Tools	86.1	81.6	( 4.5 )	( 5.3% )
	Devices and Components	44.7	42.4	( 2.2 )	( 5.0% )
	Electronic and Other Products	20.4	22.5	+ 2.0	＋ 10.0%
	Consolidated Total	301.3	312.8	+ 11.4	＋ 3.8%
	Operating Profit
	(Unit: billion yen, %:operating margin)
	Watches	16.6	19.8	+ 3.2	＋ 19.4%
	11.1%	11.9%
	Machine Tools	12.2	9.0	( 3.1 )	( 26.0% )
	14.2%	11.1%
	Devices and Components	( 0.8 )	0.4	+ 1.2	-
	( 1.8% )	1.1%
	Electronic and Other Products	1.1	1.5	+ 0.4	＋ 38.7%
	5.6%	7.1%
	Eliminations or general corporate	( 5.4 )	( 5.8 )	( 0.4 )	-
	Consolidated Total	23.7	25.0	+ 1.3	＋ 5.7%
	7.9%	8.0%

5

Full-year ROE for FY2023

ROE

• ROE rose year on year to 9.7% due to increased profitability and reduced shareholders' equity.
• The ROE target of 8.0% or more set in the Medium-term Management Plan was achieved.

350.0	10.2%	9.6%	9.7%
300.0
250.0
200.0	229.3		247.6
224.1
	203.9
150.0

100.0

50.0

• 11.8%

0.0

FY2020 FY2021 FY2022 FY2023

12%

Target of 8% or

8% more set in the Medium-term Management Plan

4%

Sharehol

0% ders' Equity

▲4%

▲8% ＲＯＥ

▲12%

• ROE = Profit attributable to owners of parent / Shareholders' equity (average of amounts at beginning and end of fiscal year)

6

Financial Results for 4Q(Jan.-Mar.) of FY 2023

7

Financial Results for 4Q(Jan.-Mar.) of FY 2023

	FY2022	FY2023
	4Q(Jan-Mar)	4Q(Jan-Mar)
（Unit：billion yen)	Result	Result
Net sales	71.1	73.9
Operating profit	2.6	1.6
Operating margin	3.8%	2.2%
Ordinary Profit	4.6	3.3
Profit attributable to	2.1	2.2
owners of parent
Exchange rate	¥133/USD	¥147/USD
¥142/EUR	¥160/EUR

YoY Change

Amount ％

+ 2.7 ＋ 3.9%

( 1.0 ) ( 38.3% )

- -

( 1.3 ) ( 28.4% )

+ 0.1 ＋ 6.0%

8

4Q(Jan.-Mar.) 2023 Result by Business Segments

			FY2022	FY2023
	Net sales	4Q(Jan-Mar)	4Q(Jan-Mar)	YoY Change
	(Unit：billion yen)	Result	Result	Amount	％
	Watches	32.6	38.9	+ 6.3	＋ 19.4%
	Machine Tools	22.7	19.4	( 3.3 )	( 14.7% )
	Devices and Components	10.5	9.9	( 0.5 )	( 5.4% )
	Electronic and Other Products	5.2	5.5	+ 0.3	＋ 6.4%
	Consolidated Total	71.1	73.9	+ 2.7	＋ 3.9%
	Operating Profit
	(Unit: billion yen, %:operating margin)
	Watches	( 0.8 )	1.4	+ 0.5	＋ 64.3%
	2.6%	3.6%
	Machine Tools	3.7	1.5	( 2.2 )	( 59.9% )
	16.5%	7.8%
	Devices and Components	( 0.6 )	0.0	+ 0.6	-
	( 6.2% )	0.3%
	Electronic and Other Products	0.1	0.2	+ 0.1	＋ 67.2%
	3.2%	5.1%
	Eliminations or general corporate	( 1.4 )	( 1.5 )	( 0.1 )	-
	Consolidated Total	2.6	1.6	( 1.0 )	( 38.3% )
	3.8%	2.2%

9

Watches （Operating Performance)

4Q(Jan.-Mar.)

• Finished watch sales
• Movement sales

Net sales (billion yen)

■ FY2022 ■ FY2023

Sales increased due to the continued moderate recovery of the domestic market and strong sales in the North American and European markets.

Sales increased due to solid sales of mechanical movements despite sluggish growth of analog quartz movements

Operating profit (billion yen)

■ FY2022 ■ FY2023

10