Consolidated Financial Results
for the Fiscal Year Ended MARCH 31, 2024
(Under Japanese GAAP)May 14, 2024
Company name:
SEIKO GROUP CORPORATION
Securities code:
8050
URL: https://www.seiko.co.jp/en/
Representative:
Shuji Takahashi, President
Inquiries:
Masanobu Minami, General Manager, Accounting Department
Scheduled date of annual general meeting of shareholders:June 27, 2024
Scheduled date to commence dividend payments:
June 28, 2024
Scheduled date to file annual securities report:
June 27, 2024 (in Japanese)
Preparation of supplementary material on financial results:
Available
Holding of financial results briefing:
Scheduled (for institutional investors and analysts)

Listing: Tokyo

Telephone: +81-3-3563-2111(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023
Note: Comprehensive income

Operating profit

Millions of yen%
276,807
6.3
14,737
260,504
9.7
11,233For the fiscal year ended March 31, 2024:
For the fiscal year ended March 31, 2023:

%
31.2
28.1
\
\

Millions of yen

Basic earnings
Diluted earnings
per shareper share
Yen
Yen
Fiscal year ended
244.33
March 31, 2024
121.86121.86
March 31, 2023
Reference:
Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2024:
For the fiscal year ended March 31, 2023:( Percentages indicate year-on-year changes.)
Profit attributable toowners of parent
Millions of yen
Millions of yen%%
15,89442.3
10,051
99.9
11,16712.4
5,028(21.6)
24,158 million[ 92.1 %]
12,576 million[ 5.9 %]
Ordinary profit

Ratio of ordinary
profit to total assets
%
%
7.2
4.3
4.0
3.3

Return on equity

Ratio of operating
profit to net sales
%
5.3
4.3

1,389 million
1,224 million\\(2) Consolidated financial position
As ofMarch 31, 2024
March 31, 2023
Reference: Equity

Total assets
Net assets
Millions of yen
Millions of yen
376,262
151,334
355,915
131,748\
As of March 31, 2024:\
As of March 31, 2023:

Equity-to-asset ratio

149,100 million
129,792 million

%
39.6
36.5

Net assets per share

Yen
3,657.61
3,144.81(3) Consolidated cash flows

Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows fromoperating activities
Millions of yen
32,726
9,261

Cash flows frominvesting activities
Millions of yen(15,095)(15,535)

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(23,017)
32,683
10,56436,2092. Cash dividends
Total cash
dividends(Total)Annual dividends per shareFirst
quarter-end

Fiscal year ended

Yen

Secondquarter-end

Yen

Third
quarter-end

Yen

Fiscalyear-end

Total

Payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

Yen

Yen

Millions of yen%%

March 31, 2023

-

37.50

-

37.50

75.00

3,100

61.5

2.5

March 31, 2024

-

37.50

-

42.50

80.00

3,307

32.7

2.4

-

45.00

-

45.00

90.00

Fiscal year ended
Fiscal year ending
March 31, 2025

(Forecast)

33.4

3. Consolidated financial forecast for the fiscal year ending March 31, 2025 (From April 1, 2024 to March 31, 2025)
Net sales
Fiscal year ending
March 31, 2025

Millions of yen

300,000

Operating profit%
8.4

Millions of yen

17,000%15.3

Ordinary profit
Millions of yen

17,000( Percentages indicate year-on-year changes.)
Profit attributable to
Basic earnings
owners of parent
per share% Millions of yen
11,000
7.0

%
9.4

Yen
269.84

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): Not Applicable
Newly included: Not applicableExcluded: Not applicable(2) Changes in accounting policies, changes in accounting estimates, and restatement: Not applicablei) Changes in accounting policies due to revisions to accounting standards and other regulations: Not applicableii) Changes in accounting policies due to other reasons: Not applicableiii) Changes in accounting estimates: Not applicableiv) Restatement(Note) Refer to Changes in accounting policies, (5) Notes to Consolidated Financial Statements, 3. Consolidated Financial Statements and Major
Notes, for detail.
(3) Number of issued shares (common shares)i) Total number of issued shares at the end of the period (including treasury shares)
41,404,261 shares /41,404,261 shares
As of March 31, 2024
As of March 31, 2023
ii) Number of treasury shares at the end of the period
639,870 shares /132,337 shares
As of March 31, 2024
As of March 31, 2023iii) Average number of shares outstanding during the period
41,136,994 sharesFiscal year ended March 31, 2024
41,262,123 sharesFiscal year ended March 31, 2023
(Note) For the purpose of calculating the number of treasury shares at the end of period and the average numbers of shares issued during the period,
treasury shares held in the Board Benefit Trust (BBT) are included in the treasury shares deducted in the calculation.
[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)( Percentages indicate year-on-year changes.)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

%
(0.6)
27.1

Millions of yen

15,22015,312
Basic earnings
per share

As ofMarch 31, 2024
March 31, 2023
Reference: Equity%(39.4)-

Millions of yen

724
1,195

Millions of yen

1,477
1,560

Profit%(5.3)-

Millions of yen

3,601
2,562

%
40.6
(21.3)

Diluted earnings
per share
Yen
87.50
62.06

Fiscal year ended
March 31, 2024
March 31, 2023
(2) Non-consolidated financial position

Ordinary profit

Operating profit

Total assets
Millions of yen

Yen-

Net assets

Equity-to-asset ratio

Millions of yen

202,287
201,299
As of March 31, 2024:
As of March 31, 2023:

63,06857,534
\
\

%
31.2
28.6
63,068 million
57,534 million

Net assets per share
Yen
1,546.34
1,393.32* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Cautionary statements with respect to financial forecast)
The financial forecasts which appear in this report have been prepared based solely on the information which was available to the Company as of thedate on which the report was released and the Company does not in any way guarantee the achievement of the forecasts. Actual results may differ
significantly from the forecasted figures due to a number of factors. For assumptions used in the financial forecasts and instructions to use thefinancial forecasts, refer to (4) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2025 (FY2024), 1. Business Results, for detail.

SEIKO GROUP CORPORATION
Consolidated Financial Results: FY2023
Page 3/23

Contents
1.

Business Results(1) Overview ..............................................................................................................
(2) Financial Condition ..............................................................................................
(3) Overview of Cash Flows ......................................................................................
(4) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2025
(FY2024) .............................................................................................................

4
6
7
8

2.

Basic Policy on Adoption of Accounting Standards .................................................

93.

Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets ...............................................................................
(2) Consolidated Statements of Income and Comprehensive Income .......................
(3) Consolidated Statements of Changes in Equity ...................................................
(4) Consolidated Statements of Cash Flows ..............................................................
(5) Notes to Consolidated Financial Statements ........................................................
(Going concern assumption) .................................................................................
(Segment information) ..........................................................................................
(Per share information) ..........................................................................................
(Significant subsequent events) .............................................................................

10
13
15
17
19
19
19
22
23

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 4/23

1. Business Results(1) Overview
In the world economy during the fiscal year ended March 31, 2024, the monetary tightening continued
by continuous high inflation. The U.S. economy continued to perform steadily, mainly in terms of
consumption, despite concerns regarding a potential slowdown. However, in Europe, sinceconsumption was weak as prices continued to soar, the economic recovery came to a standstill. In
China, although retail and production gradually recovered, a recovery following the abolishment of
the government’s “zero-COVID” policy slowed, mainly due to adjustments in the real estate market.
The Japanese economy is on an overall recovery trend, despite concerns regarding personal
consumption amid inflation, and demand from inbound tourists has recovered to pre-pandemic levels.
(Millions of yen)
FY2021

FY2022

FY2023

Variance

Variance

(a)

(b)

①

① - (a)① - (b)237,382

260,504

276,807

39,42416,302

8,770

11,233

14,737

5,967

3,504

3.7%

4.3%

5.3%

1.6pt

1.0pt

9,939

11,167

15,894

5,955

4,726

%

4.2%

4.3%

5.7%

1.5pt

1.4pt

Profit attributable to owners of parent

6,415

5,028

10,051

3,635

5,022

%

2.7%

1.9%

3.6%

0.9pt

1.7pt

USD

112.4

135.5

144.7

32.3

9.2

EUR

130.6

141.0

156.8

26.2

15.8

Net sales
Operating profit%
Ordinary profit

Exchange rate (v. JPY)

In the “Emotional Value Solutions Business (EVS Business),” the Watches Business and WAKO
Business for the Japanese market recorded significant sales growth against the backdrop of demand
from inbound tourists. The Watches Business for overseas markets also grew, mainly in Europe andAsia, and net sales were higher year on year. In the “Devices Solutions Business (DS Business),”
although net sales were significantly lower year on year amid an ongoing slump in the businessenvironment due to factors such as prolonged stagnation of the Chinese economy and inventory
adjustments in the device field as a whole, there were signs of a recovery in demand for some products.
In the “Systems Solutions Business (SS Business),” net sales were higher year on year, thanks toongoing successful efforts to diversify business and expand the stock business. As a result, for the
fiscal year ended March 31, 2024, the Group reported consolidated net sales of 276.8 billion yen, a
year-on-year increase of 6.3%.
On an overall consolidated basis, domestic net sales came to 147.4 billion yen (a year-on-year increaseSEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 5/23

of 11.2%), and overseas net sales were 129.3 billion yen (a year-on-year increase of 1.1%). Overseas
net sales comprised 46.7% of net sales overall.
Advertising and promotion expenses for the fiscal year ended March 31, 2024 increased byapproximately 10% from the previous fiscal year, resulting in a year-on-year increase of 7.3 billion
yen in selling, general and administrative expenses. Operating profit improved by 3.5 billion yen year
on year to 14.7 billion yen (a year-on-year increase of 31.2%), driven by the Emotional Value
Solutions Business. Non-operating income and expenses improved by 1.2 billion yen year on year due
to factors including increases in interest income and dividend income, and ordinary profit increased
by 4.7 billion yen year on year to 15.8 billion yen (a year-on-year increase of 42.3%). A gain on saleof non-current assets of 1.5 billion yen was posted as extraordinary income, while businessrestructuring expenses, impairment losses, and information security expenses were posted as
extraordinary losses totaling 2.3 billion yen. Profit attributable to owners of parent was 10.0 billion
yen (a year-on-year increase of 99.9%), mainly due to a decrease in income taxes - deferred inconjunction with the improvement of revenue in domestic operating companies.
The average exchange rates for the current fiscal year were 144.7 yen to 1 US dollar and 156.8 yen to
1 euro.

Results by Segment
Results for each segment are as follows:a. Emotional Value Solutions Business (EVS Business)
Net sales in the EVS Business came to 188.3 billion yen, a year-on-year increase of 17.5 billion
yen, or 10.3%.
Net sales of completed watches in Japan grew significantly year on year, especially for Grand Seikoand Seiko Prospex, due to the economic recovery following a post-pandemic recovery and strong
sales from inbound tourists. Overseas, net sales also increased year on year as Seiko Presage, Seiko
5 Sports, etc. grew. In the watch movements business, net sales remained roughly the same as thoseof the previous year, despite the impact of the sluggish Chinese economy, partly due to the effects
of exchange rates.
Sales in the WAKO Business grew significantly year on year against the backdrop of favorable
demand from inbound tourists. While overseas sales in the Clocks Business declined due to factors
such as the sluggish Chinese economy, the Time Systems Business grew.
Operating profit increased by 5.6 billion yen year on year, resulting in operating profit of 17.2 billion
yen (a year-on-year increase of 49.1%), mainly due to an increase in net sales and an improvementin the gross profit margin.
b. Devices Solutions Business (DS Business)
Net sales in the DS Business came to 58.3 billion yen, a year-on-year decrease of 9.5%. Operating

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 6/23

profit was 2.1 billion yen, a year-on-year decrease of 58.1%.
Net sales and operating profit decreased significantly year on year due to the prolonged stagnation of
the Chinese economy and continued inventory adjustments in the electronic devices market, resulting
in weak performance for thermal printers, high-performance metals for semiconductor production
equipment, and precision components. However, we are shifting from an adjustment phase to arecovery trend in some businesses, such as silver oxide batteries and quartz crystals.
c. Systems Solutions Business (SS Business)
Net sales in the SS Business came to 40.4 billion yen, a year-on-year increase of 3.8 billion yen, or
10.5%. Operating profit was 4.7 billion yen, a year-on-year increase of 0.3 billion yen, or 8.0%.
Businesses supporting digital infrastructure, such as performance management and businesses
including those related to security, together with solutions for digital transformation of businessprocesses, such as digital contracts, drove business growth, aided by the ongoing growth in digitaldemand. This trend resulted in continued year-on-year growth in both net sales and operating profit
for 32 consecutive quarters.

(2) Financial Condition-AssetsTotal assets at the close of the fiscal year ended March 31, 2024 amounted to 376.2 billion yen, an
increase of 20.3 billion yen from the close of the previous fiscal year, including the effect of exchange
rates. Total current assets came to 174.6 billion yen, an increase of 1.2 billion yen from the close of
the previous fiscal year. This was due to factors such as an increase of 5.9 billion yen in accounts
receivable - trade, while decreases of 3.6 billion yen in cash and deposits and 2.1 billion yen inaccounts receivable-other. Total non-current assets came to 201.5 billion yen, an increase of 19.0
billion yen from the close of the previous fiscal year. This was due to increases of 4.8 billion yen in
total property, plant and equipment, 2.6 billion yen in total intangible assets, and 11.5 billion yen in
total investments and other assets.
-LiabilitiesFor liabilities, total borrowings came to 117.7 billion yen, due to decreases of 8.2 billion yen in shortterm borrowings and 5.8 billion yen in long-term borrowings. In addition, notes and accounts payable- trade increased 2.7 billion yen, accounts payable - other increased 3.9 billion yen, income taxes
payable increased 2.8 billion yen, and deferred tax liabilities increased 2.6 billion yen. As a result,
total liabilities amounted to 224.9 billion yen, an increase of 0.7 billion yen from the close of theprevious fiscal year, including the effect of exchange rates.
-Net assetsWith regard to net assets, total net assets increased by 19.5 billion yen over the close of the previous
fiscal year to become 151.3 billion yen, mainly owing to increases of 5.6 billion yen in shareholders’SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 7/23

equity, 6.3 billion yen in valuation difference on available-for-sale securities and 7.6 billion yen inforeign currency translation adjustment.

(3) Overview of Cash FlowsThe balance of cash and cash equivalents at the end of the fiscal year ended March 31, 2024 came to
32.6 billion yen, a decrease of 3.5 billion yen relative to the end of the previous fiscal year. Free cash
flow, the sum of cash flows from operating and investing activities, amounted to 17.6 billion yen. Thiswas primarily due to the following factors:-Cash flows from operating activities
Net cash provided by operating activities came to positive 32.7 billion yen (compared to a positive
cash flow of 9.2 billion yen for the previous fiscal year). This was the result of the Company posting
15.1 billion yen in income before income taxes, factoring in depreciation amounting to 13.3 billion
yen, as well as adjustments such as a 3.7 billion yen decrease in inventories (posted as an increase), a
3.8 billion yen increase in trade payables (posted as an increase), and others.
-Cash flows from investing activities
Net cash used in investing activities came to negative 15.0 billion yen (compared to a negative cash
flow of 15.5 billion yen for the previous fiscal year) due to cash outflows consisting mainly of 11.0
billion yen in purchase of property, plant and equipment (posted as a decrease) and 2.4 billion yen inpurchase of shares of subsidiaries resulting in change in scope of consolidation (posted as a decrease).
-Cash flows from financing activities
Net cash provided by financing activities came to negative 23.0 billion yen (compared to a positive
cash flow of 10.5 billion yen for the previous fiscal year) due mainly to repayments and borrowingsof long- and short-term borrowings that combined for a net amount of 15.6 billion yen (posted as adecrease), as well as 2.3 billion yen in repayments of lease liabilities (posted as a decrease) and 3.1
billion yen in dividends paid (posted as a decrease).

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 8/23(4) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2025 (FY2024)
During the fiscal year ending March 31, 2025, the Watches Business and WAKO Business in the EVS
Business and the SS Business are expected to continue to perform steadily, and the DS Business is
expected to recover. Accordingly, the financial forecasts for the fiscal year ending March 31, 2025 are
as follows.
Note that the exchange rates for the financial forecast are as follows: 1 US dollar = 140.0 yen; 1 euro
= 150.0 yen.
■Forecast for the consolidated business results for FY2024
Profit(Millions of yen)

Net sales

Operating

Ordinary

attributable

Earnings

profitprofitto owners

per shareof parent

FY2023 (A)276,807

14,737

15,894

10,051

244.33 yen

FY2024 (forecast) (B)

300,000

17,00017,00011,000269.84 yen

Year-on-year change (B-A)

23,192

2,262

1,105

948

25.51 yen

8.4

15.3

7.0

9.4

10.4

Year-on-year change (%)■Forecasted results by segment for FY2024(Billions of yen)

Net Sales

Operating Profit

Emotional Value Solutions Business

196.0

19.0

Devices Solutions Business

63.5

3.0

Systems Solutions Business

50.5

5.8

Total for reported segments

310.0

27.8

1.0

0.1

300.0

17.0

OthersConsolidated total

Note: Consolidated total represents figures after consolidation adjustment such as the elimination of inter-segment sales.

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 9/23

The Company’s basic policy for profit allocation is to enhance internal reserves to strengthen its
management foundation and to focus on allocating stable profits to shareholders. In addition, theCompany returns profits to shareholders primarily through dividends and will maintain for a
consolidated payout ratio of 30% or above.
Since the consolidated financial forecast for the next fiscal year is expected to exceed the results for thecurrent fiscal year, the Company has decided on a dividend forecast for the next fiscal year of 45.0 yen
per share for both the interim and the fiscal year-end dividends, which is an increase of 2.5 yen per
share compared to the fiscal year-end dividend for the current fiscal year of 42.5 yen per share.
Accordingly, the annual dividend for the next fiscal year will be 90 yen per share, which is an increaseof 10 yen per share compared to the current fiscal year.
■Dividend forecast
Annual dividends per share

Payout ratio

2nd quarter-end

Fiscal year-end

Total (annual)(Consolidated)

Fiscal year ended March 31, 2023

37.50 yen

37.50 yen

75.00 yen

61.5 %

Fiscal year ended March 31, 2024

37.50 yen42.50 yen

80.00 yen32.7 %

Current forecast FY2024(as of May 14, 2024)

45.00 yen

45.00 yen

90.00 yen

33.4 %

Record date

The forecasted results which appear in this report have been prepared based solely on the information
which was available to us as of the date on which the report was released. As a result, actual results
may differ from the forecasted figures due to a number of factors, such as changes in the businessenvironment in the future.

2. Basic Policy on Adoption of Accounting Standards
The Group prepares its consolidated financial statements in accordance with Japanese GAAP in orderto ensure comparability with peer companies in Japan and in consideration of the burden of
establishing a system to prepare consolidated financial statements in accordance with International
Financial Reporting Standards (IFRS).

SEIKO GROUP CORPORATION
Consolidated Financial Results: FY2023
Page 10/23

3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of yen)

As of March 31,

As of March 31,

2023

2024

AssetsCurrent assets
Cash and deposits

36,32432,683

Notes receivable - trade

3,062

3,479

Accounts receivable - trade35,187

41,136397

880

Merchandise and finished goods

49,75049,683Work in process

18,117

18,716

Raw materials and supplies

15,90815,983

Accounts receivable - other

6,577

4,377

Other

9,381

9,173

Allowance for doubtful accounts(1,297)(1,419)Total current assets

173,410

174,694

Buildings and structures

79,28082,230Machinery, equipment and vehicles

86,117

91,948Tools, furniture and fixtures

39,23342,617

Other

12,69915,609(163,232)(172,067)

Land

54,182

54,144

Construction in progress

2,867

1,553

111,149

116,037

Goodwill

6,901

8,029

Other

8,620

10,159Total intangible assets

15,522

18,189Investment securities

45,49056,374Retirement benefit asset

1,820

1,884

Deferred tax assets

1,923

1,984

Other

6,752

7,247

Allowance for doubtful accounts

(153)

(148)

Total investments and other assets

55,83367,341

182,505

201,568

355,915376,262

Contract assets

Non-current assets
Property, plant and equipment

Accumulated depreciation

Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets

SEIKO GROUP CORPORATION
Consolidated Financial Results: FY2023
Page 11/23(Millions of yen)

As of March 31,

As of March 31,

2023

2024

Liabilities
Current liabilities
Notes and accounts payable - trade

18,79021,500Electronically recorded obligations - operating

6,212

8,085

Short-term borrowings

72,59864,350300-

Current portion of long-term borrowings

22,117

21,727

Accounts payable - other

11,344

15,291

Income taxes payable

1,793

4,678

Contract liabilities

7,916

8,760

Provision for bonuses

4,879

5,097

Provision for goods warranties

488

552

Provision for loss on lease contracts

348

87

Provision for business restructuring

247

24

Other provisions

367

366

9

647

Other

14,743

14,289Total current liabilities

162,157

165,460

Long-term borrowings

37,52531,674

Lease liabilities

5,667

7,676

Deferred tax liabilities

4,285

6,912

Deferred tax liabilities for land revaluation

3,614

3,614

Provision for stock benefits

538

582

Provision for long-term goods warranties

88

121

4

4

Provision for loss on lease contracts

87-

Other provisions

23

23

Retirement benefit liability

6,894

6,135

Asset retirement obligations

1,079

494

Other

2,199

2,227

Total non-current liabilities

62,00959,467224,166

224,927

Current portion of bonds payable

Asset retirement obligations

Non-current liabilities

Provision for retirement benefits for directors(and other officers)

Total liabilities

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 12/23(Millions of yen)

As of March 31,

As of March 31,

2023

2024

Net assets
Shareholders' equity
Share capital

10,00010,000Capital surplus

7,245

7,245

Retained earnings

81,52088,465

Treasury shares(248)(1,584)

Total shareholders' equity

98,517104,126

11,464

17,820(9)(74)

Revaluation reserve for land

8,190

8,190

Foreign currency translation adjustment

10,63818,290Remeasurements of defined benefit plans

992

746

31,27544,974

1,956

2,234

131,748

151,334

355,915376,262

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 13/23(2) Consolidated Statements of Income and Comprehensive Income
a. Consolidated Statements of Income(Millions of yen)
FY2022

FY2023

Net sales

260,504

276,807

Cost of sales

148,706

154,120Gross profit

111,798

122,686

Selling, general and administrative expenses

100,564

107,948

Operating profit

11,233

14,737

Interest income

199

392

Dividend income

771

961

1,224

1,389

858

1,521

3,053

4,264

Interest expenses

1,139

1,350

Other

1,980

1,757

Total non-operating expenses

3,119

3,107

11,167

15,894228

1,230

Gain on sale of investment securities-

139

Reversal of provision for business restructuring-

106

Insurance claim income-

100

Total extraordinary income

228

1,575

968

1,089

Impairment losses-

806

Information security expenses-

450

Loss on sale of investment securities

548-

Loss on cancellation of agency agreement

147-

Loss on the spread of infectious disease

90

-

1,753

2,346

Profit before income taxes

9,642

15,123

Income taxes - current

2,995

4,890

Income taxes - deferred

1,350

(104)

Total income taxes

4,346

4,785

Profit5,295

10,338

267

286

5,028

10,051Non-operating income

Share of profit of entities accounted for using equity method

Other
Total non-operating income
Non-operating expenses

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

Extraordinary losses
Business restructuring expenses

Total extraordinary losses

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

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 14/23

b. Consolidated Statements of Comprehensive Income(Millions of yen)

FY2022
ProfitFY2023

5,295

10,338Valuation difference on available-for-sale securities

403

6,341

Deferred gains or losses on hedges

321

(64)

Foreign currency translation adjustment

4,048

7,406

Remeasurements of defined benefit plans, net of tax

1,020

(538)

1,487

676

7,280

13,82012,57624,15812,26423,750311

408

Other comprehensive income

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 15/23(3) Consolidated Statements of Changes in Equity
Previous fiscal year (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital

10,000

Balance at beginning of period

Capital surplus

Retained earnings

Treasury shares

7,245

79,075

(292)

Total
shareholders’equity96,028Changes during period
Dividends of surplus
Profit attributable to owners ofparent(2,583)(2,583)

5,028

5,028

Purchase of treasury shares

(0)

(0)

Disposal of treasury stock byownership plan trust

44

44

Other

(0)

(0)

Net changes in items other thanshareholders' equity

-

-

2,444

44

2,488

10,0007,245

81,520(248)

98,517

Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

10,942

(331)

8,190

5,116

Total
Remeasuraccumulated
ements ofother compredefined
hensivebenefit plansincome120

24,038

Noncontrollinginterests

Total net
assets1,557 121,624

Changes during period
Dividends of surplus(2,583)

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
stock by ownershipplan trust

5,028
(0)
44
(0)

Other
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

521

321

-

5,521

871

7,236

398

7,635

521

321

-

5,521

871

7,236

398

10,124

11,464(9)

8,190

10,638992

31,275

1,956 131,748

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 16/23

Current fiscal year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

Retained earnings

Treasury shares

7,245

81,520(248)

10,000

Balance at beginning of period

Totalshareholders’equity98,517

Changes during period
Dividends of surplus(3,100)(3,100)

Profit attributable to owners ofparent10,051

10,051(2)(2)(1,418)(1,418)84

84

Purchase of treasury shares
Treasury stock possession ofstock ownership plan trust
Disposal of treasury stock byownership plan trust
Change in scope of
consolidation

(4)

(4)

Other

(0)

0

(0)

Net changes in items other thanshareholders' equity

-

-

6,945

(1,336)

5,608

10,0007,245

88,465(1,584)104,126

Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

11,464(9)

8,190

10,638

Total
Remeasuraccumulated
ements ofother compredefined
hensivebenefit plansincome992

31,275

Noncontrollinginterests

Total net
assets

1,956

131,748

Changes during period
Dividends of surplus(3,100)

Profit attributable toowners of parent
Purchase of treasury
sharesTreasury stockpossession of stock
ownership plan trust
Disposal of treasury
stock by ownershipplan trust
Change in scope of
consolidation

10,051(2)(1,418)
84
(4)
(0)

Other
Net changes in items
other thanshareholders' equity

6,356

(64)

-

7,652

(245)

13,698278

13,977

Total changes during
period

6,356

(64)

-

7,652

(245)

13,698278

19,586

Balance at end of period

17,820

(74)

8,190

18,290746

44,974

2,234

151,334SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 17/23(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2022

FY2023

Cash flows from operating activities
Profit before income taxes

9,642

15,123

Depreciation

12,35913,301(14)

28

Increase (decrease) in retirement benefit liability

(865)

(830)

Interest and dividend income(970)(1,353)

Interest expenses

1,139

1,350

18

(187)

(1,224)(1,389)-806

Loss (gain) on sale of investment securities

548

(139)

Loss (gain) on sale of non-current assets(228)(1,230)Loss on retirement of non-current assets

270

650

Decrease (increase) in trade receivables

688(4,276)

Decrease (increase) in inventories(8,235)

3,708

Increase (decrease) in trade payables(3,399)3,899

Other, net

2,296

5,142

Subtotal

12,02534,605

971

1,353

232

241

Interest paid

(1,133)(1,360)

Income taxes paid

(2,834)(2,113)

Net cash provided by (used in) operating activities

9,261

32,726

Increase (decrease) in allowance for doubtful
accounts

Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Impairment losses

Interest and dividends received
Dividends received from entities accounted forusing equity method

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 18/23(Millions of yen)

FY2022

FY2023

Cash flows from investing activities
Purchase of property, plant and equipment(12,182)(11,023)

269

1,661

Purchase of investment securities

(0)

(0)

Proceeds from sale of investment securities

513

191

(1,013)

(588)

733

716

(1,428)(2,466)

Other, net(2,427)(3,586)

Net cash provided by (used in) investing activities(15,535)(15,095)

Proceeds from short-term borrowings

1,408,747

1,466,028

Repayments of short-term borrowings(1,400,675)(1,475,464)

Proceeds from long-term borrowings

32,80017,691

Repayments of long-term borrowings(25,629)(23,941)(0)(1,421)

Repayments of lease liabilities(1,895)(2,381)Dividends paid

(2,583)(3,100)

Other, net

(197)

(429)

Net cash provided by (used in) financing activities

10,564(23,017)

1,180

1,860

Net increase (decrease) in cash and cash equivalents

5,470(3,526)

Cash and cash equivalents at beginning of period

30,73836,209Cash and cash equivalents at end of period

36,20932,683

Proceeds from sale of property, plant andequipment

Loan advances
Proceeds from collection of loans receivable
Purchase of shares of subsidiaries resulting inchange in scope of consolidation

Cash flows from financing activities

Purchase of treasury shares

Effect of exchange rate change on cash and cash
equivalents

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 19/23(5) Notes to Consolidated Financial Statements(Going concern assumption)
Not applicable.
(Segment Information)
1. Outline of the reported segments
The Company’s reported segments are business units of the Company for which discrete financial
information is available and for which the Board of Directors regularly conducts a review for the
purpose of making decisions about management resources to be allocated to the segments and assessing
the segment’s performance.
The Company has established three strategic domains (the Emotional Value Solutions domain, theDevices Solutions domain, and the Systems Solutions domain) based on the solutions it provides, andformulated and implemented strategies for each domain.
Therefore, the Company has three reported segments: "Emotional Value Solutions Business," "Device
Solutions Business," and "System Solutions Business," based on the solutions provided by the strategic
domains.
The main merchandise and finished goods belonging to each reported segment are as follows:
Reported Segment

Main merchandise and finished goods

Emotional Value Solutions

Watches / Watch movements / Clocks / High-end jewelry, apparel,

Business

and fashion accessories / System clocks

Devices Solutions Business
Systems Solutions Business

Micro batteries and materials / Crystal oscillators / Precisioncomponents / Printers / Quartz oscillator ICs
Digital trust solutions / Network solutions / IT management
solutions / IoT solutions / Wireless network solutions / Customer
experience (CX) solutions / Cashless solutions

OthersShared services / Real estate leasing / Others

2. Explanation of measurements of sales, profit (loss), asset for each reported segment
The accounting method for the reported segments is the same as basis of preparation for the consolidated
financial statements. Intersegment transactions are primarily based on market prices.

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 20/23

3. Amount of sales, profit (loss), and asset for each reported segment
For the fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)
Reported segments
Others(Note 1)

Grand total

Adjustment(Note 2)

Figures in
consolidated
statements ofincome(Note 3)259,726367

260,093411

260,504

3,071

12,226741

12,968(12,968)-

64,53036,626

271,952

1,109

273,061(12,557)

260,504

11,575

5,059

4,367

21,002

171

21,173(9,940)

11,233

143,181

82,71429,747

255,642

23,605279,248

76,667355,915

Emotional
Value
Solutions
Business

Devices
Solutions
Business

Systems
Solutions
Business

Total

Revenues fromexternal customers

167,742

58,42833,554

Transactions withother segments

3,053

6,101

Net sales

170,795

Segment profit
Segment asset

Sales

Notes:

1.

The “Others” category denotes operating segments not included among reported segments, such as the
Shared Services Business.
2. Adjustments are as follows:(1) Adjustment to revenues from external customers in the amount of 411 million yen is royalty income at
headquarters, unallocated to operating segments.
(2) Adjustments to segment profit in the amount of -9,940 million yen include -566 million yen in theamortization of goodwill, -522 million yen that mainly consists of the elimination of transactions withother segments, and -8,851 million yen in company-wide expenses not appropriated to each reported
segment. Company-wide expenses primarily consist of expenses incurred at headquarters, unallocated tooperating segments.
(3) Adjustments to segment assets in the amount of 76,667 million yen include -81,055 million yen in theelimination of inter-segment liabilities, 212,305 million yen in company-wide assets not appropriated toeach reported segment, and -54,582 million yen that mainly consists of the elimination of investments
and equity. Company-wide assets consist of surplus funds and long-term investment funds (investment
securities) at headquarters, etc.
3. Segment profit has been adjusted for alongside operating profit on the consolidated statements of income.

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 21/23

For the fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(Millions of yen)
Reported segments
Others(Note 1)

Grand total

Adjustment(Note 2)

Figures in
consolidated
statements ofincome(Note 3)275,961381

276,342464

276,807

3,142

11,241824

12,066(12,066)-

58,39640,454287,202

1,206

288,409(11,602)276,807

17,262

2,117

4,715

24,095219

24,314(9,577)

14,737

156,437

81,911

36,119274,468

24,527

298,996

77,266376,262

Emotional
Value
Solutions
Business

Devices
Solutions
Business

Systems
Solutions
Business

Total

Revenues fromexternal customers

185,40953,23937,312

Transactions withother segments

2,942

5,156

Net sales

188,351

Segment profit
Segment asset

Sales

Notes:

1.

The “Others” category denotes operating segments not included among reported segments, such as the
Shared Services Business.
2. Adjustments are as follows:(1) Adjustment to revenues from external customers in the amount of 464 million yen is royalty income at
headquarters, unallocated to operating segments.
(2) Adjustments to segment profit in the amount of -9,577 million yen include -566 million yen in theamortization of goodwill, -482 million yen that mainly consists of the elimination of transactions withother segments, and -8,528 million yen in company-wide expenses not appropriated to each reported
segment. Company-wide expenses primarily consist of expenses incurred at headquarters, unallocated tooperating segments.
(3) Adjustments to segment assets in the amount of 77,266 million yen include -81,458 million yen in theelimination of inter-segment liabilities, 213,233 million yen in company-wide assets not appropriated toeach reported segment, and -54,508 million yen that mainly consists of the elimination of investments
and equity. Company-wide assets consist of surplus funds and long-term investment funds (investment
securities) at headquarters, etc.
3. Segment profit has been adjusted for alongside operating profit on the consolidated statements of income.

SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 22/23(Per share information)(Yen)
Current fiscal year
(from April 1, 2023 to March 31, 2024)

Net assets per share

3,657.61

Basic earnings per share

244.33(Notes) 1. For the purpose of calculating the basic earnings per share, the treasury shares remaining intrust posted as treasury shares in the “Shareholders’ equity” section are included in thetreasury shares deducted in the calculation of the average number of shares during the fiscal
year (185 thousand shares for the current fiscal year).
For the purpose of calculating the net assets per share, the treasury shares so remaining intrust are included in the treasury shares deducted from the total number of shares issued
and outstanding at the end of the fiscal year (557 thousand shares for the current fiscal
year).
2. Diluted net income per share is not provided as there are no potentially dilutive shares.
3. Calculation basis of net assets per share is as follows:(Millions of yen)
Current fiscal year
(as of March 31, 2024)
Total net assets

151,334

Amounts deducted from total net assets

2,234

Of which, non-controlling interests

2,234

Net assets at the end of the fiscal year related to149,100

common shares
The number of common shares at the end of the fiscal

40,764

year used to calculate net assets per share(Thousands of shares)
4. Calculation basis of basic earnings per share is as follows:(Millions of yen)
Current fiscal year
(from April 1, 2023 to March 31, 2024)
Basic earnings per share:
Profit attributable to owners of parent
Profit attributable to owners of parent
pertaining to common stock
Average number of shares of common stock
outstanding during the period (Thousands of shares)

10,051
10,051
41,136SEIKO GROUP CORPORATION

Consolidated Financial Results: FY2023
Page 23/23(Significant subsequent events)
Current fiscal year (from April 1, 2023 to March 31, 2024)
Not applicable.

***