Earning Presentation
for the Year ended March 31, 2023

May 13, 2024

1

IndexFinancial 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

My name is Toshiyuki Furukawa, in charge of the Public & Investor Relations
Department.
I will provide details on these topics today.

2Financial Results for FY 2023

3

I will provide an explanation on the financial results for fiscal 2023.

3

Financial Results for FY 2023
FY2022（Unit：billion yen)

1-4Q

(Apr-Mar)(Apr-Mar)

ResultResultYoY Change
Amount％Net sales

301.3

312.8

+ 11.4＋ 3.8%

Operating profit

23.7

25.0

+ 1.3

＋ 5.7%

Operating margin

7.9%

8.0%

-

-

Ordinary Profit

29.0

30.8

+ 1.7

＋ 5.9%

21.8

22.9

+ 1.1

＋ 5.1%¥135/USD¥144/USD¥141/EUR¥156/EUR

Profit attributable toowners of parent

Exchange rate



FY2023

1-4Q

Sales and Profits increased, reflecting continuing growth in the mainstay
Watches segment
4This is our statement of income for the full year.
Net sales increased 3.8% year on year to JPY 312.8 billion. Operating profit rose 5.7%
year on year to JPY 25.0 billion, with an operating margin of 8.0%.
Solid performance was achieved in the mainstay Watches business, resulting inincreased sales and profit.
Ordinary profit totaled JPY 30.8 billion, while profit attributable to owners of parent
amounted to JPY 22.9 billion.

4

Financial results by Business Segments
FY2022
Net sales

FY2023

1-4Q(Apr-Mar) 1-4Q(Apr-Mar)(Unit：billion yen)

ResultResultYoY Change
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%+ 3.2＋ 19.4%( 3.1 )

( 26.0% )

+ 1.2

-

+ 0.4

＋ 38.7%( 0.4 )-

+ 1.3

＋ 5.7%

Operating Profit(Unit: billion yen, %:operating margin)

Watches
Machine Tools
Devices and Components
Electronic and Other Products
Eliminations or general corporate

Consolidated Total

16.6

19.8

11.1%

11.9%

12.2

9.0

14.2%

11.1%

( 0.8 )

0.4

( 1.8% )

1.1%

1.1

1.5

5.6%

7.1%

( 5.4 )

( 5.8 )

23.7

25.0

7.9%

8.0%

5

We are now looking at financial results by segment.
Brisk sales continued in the Watches business, mainly in European and American
markets. Net sales improved 10.8% year on year to JPY 166.2 billion, with operating profit
recording a 19.4% rise to JPY 19.8 billion on an operating margin of 11.9%.
In the Machine Tools business, net sales decreased 5.3% year on year to JPY 81.6 billion
while orders received remained in an adjustment phase.
Operating profit decreased to JPY 9.0 billion due in part to a fall in sales and a rise inmaterial costs.
Devices and Components recorded a decline in net sales, but operating profit
increased.
Electronics and Other Products segment posted an increase in both net sales andoperating profit.

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.

10.2%

350.0

9.6%

9.7%

300.0

8%

250.0
200.0
150.0

229.3

203.9

247.6
224.1

0.0

Target of 8% ormore set in theMedium-termManagement Plan

4%0%

Shareholders'
Equity

▲4%

100.0
50.0

12%

▲8%

▲ 11.8%FY2020

ＲＯＥ▲12%
FY2021

FY2022

FY2023* ROE = Profit attributable to owners of parent / Shareholders' equity (average ofamounts at beginning and end of fiscal year)

6

As for the progress of ROE, that in FY2023 was 9.7%.
Like in FY2022, we were able to surpass the target ROE of at least 8.0% in our Mediumterm Management Plan by raising profitability and reducing shareholders' equity.
We are expecting to achieve an ROE of 8.0% or higher also in FY2024, the final fiscal
year of the Medium-term Management Plan.

6

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

7

Next, I will describe the financial results for the fourth quarter.

7

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

（Unit：billion yen)

FY2022

FY20234Q(Jan-Mar)

4Q(Jan-Mar)

ResultResultYoY Change
Amount％Net sales

71.1

73.9

+ 2.7

＋ 3.9%

Operating profit

2.6

1.6

( 1.0 )

( 38.3% )Operating margin

3.8%

2.2%

-

-

4.6

3.3

( 1.3 )

( 28.4% )

2.1

2.2

+ 0.1

＋ 6.0%¥133/USD¥147/USD¥142/EUR¥160/EUR

Ordinary Profit
Profit attributable toowners of parent

Exchange rate

8

Net sales in the fourth quarter increased 3.9% year on year to JPY 73.9 billion.
Operating profit decreased 38.3% year on year to JPY 1.6 billion, with an operating
margin of 2.2%.
The Machine Tools segment was the major factor for the decrease in profit.
Ordinary profit declined 28.4% year on year to JPY 3.3 billion, while profit stood at JPY
2.2 billion, up 6% year on year.

84Q(Jan.-Mar.) 2023 Result by Business Segments

Net sales(Unit：billion yen)

FY2022

FY20234Q(Jan-Mar)

4Q(Jan-Mar)

ResultResultYoY Change
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%+ 0.5＋ 64.3%( 2.2 )

( 59.9% )

+ 0.6

-

+ 0.1

＋ 67.2%( 0.1 )-

( 1.0 )

( 38.3% )Operating Profit(Unit: billion yen, %:operating margin)

Watches
Machine Tools
Devices and Components
Electronic and Other Products
Eliminations or general corporate

Consolidated Total( 0.8 )

1.4

2.6%

3.6%

3.7

1.5

16.5%

7.8%

( 0.6 )

0.0

( 6.2% )

0.3%

0.1

0.2

3.2%

5.1%

( 1.4 )

( 1.5 )

2.6

1.6

3.8%

2.2%

9

These are financial results by business segment.
While Watches and Electronic and Other Products segments achieved growth in net
sales, Machine Tools and Devices and Components segments saw a decline in net
sales
I will provide an overview of each business in the next slide.

9

Watches （Operating Performance)
4Q(Jan.-Mar.) Finished watch
sales

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

 Movement sales

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

Net sales (billion yen)

Operating profit (billion yen)

■FY2022 ■FY2023■FY2022 ■FY2023

10

I will explain the Watches business.
Finished watch sales increased because a moderate recovery trend was maintainedin Japan and sales in North America and Europe remained strong.
In sales of movements, analog quartz movements did not grow as expected. Even so,
net sales increased because mechanical movements remained firm.

10Watches Net sales growth rate by region
Rate of change year on year
Japan

China

* The rate of change in total sales of CITIZEN brand watches and BULOVA
brand watches only for North America. For other regions, the rate ofchange only in sales of CITIZEN brand watches.
* Rate of change based on local currency
Asia(except China)

America

Europe

+25%
+20%
+15%
+10%
+5%
+0%
(5%)
4Q

1-4Q



Japan

Sales increased due to firm sales of ATTESA and other men's brands, although consumption
recovered only moderately.



China

Sales remained at the level of the previous year, reflecting continued weakness in consumer
confidence.

Asia (except China)

Sales declined slightly as the Hong Kong and Southeast Asia markets did not recover, but sales werestrong in India and other regions.



America

Sales rose due to strong e-commerce sales and the recovery of department stores and jewelry
chains, partly driven by solid sales of new products.

EuropeSales climbed due to continued strength in sales of the TSUYOSA Collection, driven by the launch of a
new model.

11

Next, I would like to talk about year-on-year changes in net sales by region on a local
currency basis.
The chart on the left shows year-on-year changes for the fourth quarter alone.
The red bar shows Japan, where the recovery in consumption was moderate but net
sales increased because men’s brands such as ATTESA remained strong.
In China, sales remained at the level of the previous year, reflecting continued
weakness in consumer confidence.
In Asia shown in light green, sales declined slightly as the Hong Kong and Southeast
Asian markets did not recover although sales were strong in India and other regions.
In North America, shown in light blue, sales rose due to strong e-commerce sales andthe recovery of sales for department stores and jewelry chains driven by progress insales of new products.
In Europe shown in light purple, sales climbed due to continued strength in sales partly
driven by increased product lines of the TSUYOSA Collection.
In total, sales increased in all regions as shown in the graph on the right-hand side. In
particular, sales grew more than 10% in Japan and Europe.

11

Machine Tools （Operating Performance)
4Q(Jan.-Mar.)

Sales declined due to sluggish growth in shipments of automobile-related products and weak
conditions in various markets while the corporate sector's stance on capital expenditures remained
generally cautious.

Net sales (billion yen)

Operating profit (billion yen)

■FY2022 ■FY2023■FY2022 ■FY2023

12

I will explain the Machine Tools business.
Net sales came to JPY 19.4 billion, down 14.7% year on year, and operating profit was
JPY 1.5 billion, down 59.9% year on year, due to a fall in sales and a rise in the cost of
materials purchased as a result of sluggish markets, including low growth inshipments of automobile-related products although a cautious stance on capital
expenditures remained.

12

Machine tools Changes in monthly orders received (units)
Rate of change year on year (three-month moving average of the numbers of units in orders received)
Total

Japan

Asia

America

Europe

+60%
+40%
+20%
+0%
(20%)
(40%)
(60%)
(80%)
Oct

Nov

Dec

Jan

Feb

Mar

Rate of change year on year for 4Q (Quarterly number of units in orders)● Total+11%

Orders increased significantly in March, partly due to a last-minute increase in orders
before price hikes. However, they are expected to grow moderately from April.

● Japan(12%)

Market conditions remained weak, and there was a widespread cautious stance on capital
expenditures. However, orders rose in March due to last-minute demand before price hikes.

● Asia+53%

Orders were strong following the Chinese New Year. However, the market remained
uncertain, leading to a limited recovery.

● America(58%)

Orders received were low amid rising concern about an economic recession.

● Europe(31%)

Orders were firm in healthcare and other areas, but motivation for capital expenditures waslimited.

13

This slide shows the status of orders received by region.
The line graph shows the three-month moving average of orders received and thepercentage change year on year.
Orders received bottomed out in the second quarter and have been recoveringmodestly. Meanwhile, a last-minute surge in demand before an upward price revisionoccurred in March and caused a temporary, substantial increase in orders.
The table under the graph shows the rates of change year-on-year in the fourth
quarter.
Orders received in total increased 11% year on year.
By region, in Japan, orders received decreased 12% year on year, reflecting thecontinuation of generally weak market conditions due to the increase in the number ofcompanies taking a cautious stance on capital expenditures.
While the Asian market remains uncertain, orders received in China increased 53%
year on year after the Chinese New Year.
In America, orders remained at a low level, reflecting rising concern about an
economic recession, and recorded a 58% decrease year on year.
In Europe, while orders were firm in healthcare and other areas, capital expenditures
decreased 31% year on year due to limited motivation.

13

Devices and Components（Operating Performance)
4Q(Jan.-Mar.)

Auto Components

Small Motors



Other devices

Domestic sales increased in response to a moderate recovery in the overall market, partly basedon the easing of restrictions on material supply despite the impact of market trends.
Sales of small motors increased with the recovery of market conditions across a broad range ofareas, including healthcare.
Sales of devices and components decreased overall, affected by the slow sales of othercomponents including crystal devices.

Net sales (billion yen)

Operating profit (million yen)

■FY2022 ■FY2023■FY2022 ■FY2023

14

I will explain the Devices and Components business.
Net sales were JPY 9.9 billion, down 5.4% year on year, but we remained the black interms of operating profit.
Sales of auto components continued to recover slowly, and sales of small motors
increased with the recovery in market conditions across a broad range of areas,
including healthcare.
Meanwhile, sales of Devices and Components segment decreased overall, affected byslow sales of other components including crystal and Opto-devices.

14

FY 2024 Forecasts

15

Next, I will discuss our forecasts for FY2024.

15

FY 2024 Forecasts
FY 2024 Forecasts
FY2023 Result（Unit：billion yen)AmountFY2024 Forecast

1H(Apr-Sep)

Full Year

1H(Apr-Sep)

Full YearNet sales

152.9

312.8

151.0

Operating profit

13.5

25.0

Operating margin

8.9%

Ordinary Profit

Full Year

1H

Full Year

310.0( 1.9 )

( 2.8 )

( 1.3% )( 0.9% )

11.0

23.0

( 2.5 )

( 2.0 )

( 18.8% )( 8.2% )

8.0%

7.3%

7.4%

-

-

-

-

17.4

30.8

12.2

25.5

( 5.2 )

( 5.3 )

( 30.0% )( 17.2% )

13.3

22.9

12.5

22.0

( 0.8 )

( 0.9 )

( 6.6% )( 4.2% )¥139/USD¥144/USD¥145/USD¥145/USD¥152/EUR¥156/EUR¥155/EUR¥155/EUR

Profit attributable toowners of parent

Exchange rate％

1H

Dividends Forecasts

Dividends per share 45yen (Full year)（Second quarter 22.5 yen / Year-end 22.5yen）An increase of 5 yen from the previous year

Exchange rate impact(Unit：billion yen)

USD

(1 weaker yen, Annual)

EUR

Net sales

+0.65

+0.3

Operating profit

+0.2

+0.15

16

Net sales were JPY 310.0 billion, down JPY 2.8 billion year on year. Operating profit
decreased by JPY 2.0 billion year on year to JPY 23.0 billion, and ordinary profit came to
JPY 25.5 billion.
Profit is projected to decrease JPY 0.9 billion year on year to JPY 22.0 billion due in partto extraordinary income as a gain on the sale of investment securities expected in thefirst quarter.
Exchange rate assumptions for the business forecast are JPY 145 to the U.S. dollar and
JPY 155 to the euro.
Forecast for the annual dividend is 45 yen per share, an increase of 5 yen from theprevious fiscal year, in line with the policy of our Medium-term Management Plan.

16

FY 2024 Forecast by Business Segment
FY2023 Result

Net sales(Unit：billion yen)

1H(Apr-Sep)

FY2024 Forecast

Full Year

1H(Apr-Sep)

Full Year

Amount％1H

Full Year

1H

Full Year

Watches

78.5

166.2

82.0

171.5

+ 3.4

+ 5.2

＋ 4.4%＋ 3.2%

Machine Tools

41.4

81.6

36.0

73.0

( 5.4 )

( 8.6 )

( 13.1% )( 10.6% )Devices and Components

22.1

42.4

21.3

42.5

( 0.8 )

+ 0.0

( 4.0% )＋ 0.0%

Electronic and Other Products

10.7

22.5

11.7

23.0

+ 0.9

+ 0.4

＋ 8.5%＋ 2.2%

152.9

312.8

151.0

310.0

( 1.9 )

( 2.8 )

( 1.3% )( 0.9% )

+ 0.0

+ 0.6

( 0.0% )＋ 3.3%( 2.4 )

( 2.4 )

( 46.4% )( 26.9% )

+ 0.0

+ 0.3

＋ 0.0%＋ 72.8%

+ 0.1

+ 0.0

＋ 18.5%( 5.5% )( 0.2 )

( 0.5 )--

( 2.5 )

( 2.0 )

( 18.8% )( 8.2% )Consolidated Total
Operating Profit(Unit: billion yen, %:operating margin)

Watches
Machine Tools
Devices and Components
Electronic and Other Products
Eliminations or general corporate

Consolidated Total

10.2

19.8

10.2

20.5

13.0%

11.9%

12.4%

12.0%

5.2

9.0

2.8

6.6

12.6%

11.1%

7.8%

9.0%

0.4

0.4

0.4

0.8

1.8%

1.1%

1.9%

1.9%

0.6

1.5

0.8

1.5

6.3%

7.1%

6.8%

6.5%

( 2.9 )

( 5.8 )

( 3.2 )

( 6.4 )

13.5

25.0

11.0

23.0

8.9%

8.0%

7.3%

7.4%

17

This slide shows our full-year consolidated earnings forecasts by segment.
In Watches, we forecast net sales of JPY 171.5 billion, an increase of JPY 5.2 billion, andoperating profit of JPY 20.5 billion while maintaining strong sales. In Machine Tools, we
expect a decrease in both sales and profit, including a fall in net sales of JPY 8.6 billion
year on year and a decline in operating profit of JPY 2.4 billion year on year. This
reflects the impact of changing demand.
In Devices and Components, net sales are projected to be JPY 42.5 billion whileremaining at the level of the previous year. In Electronic and Other Devices, net sales
are expected to slightly increase year on year to JPY 23.0 billion.

17

Medium-term Management Plan 2024 (FY2022-FY2024)
Activities

18

Lastly, I would like to briefly review our activities under Medium-term Management
Plan 2024.

18

Medium-term Management Plan 2024

Activities

Watches (Operating Performance)

Medium-term Management Plan 2024
Watches FY2024 target

Net sales(billion yen)

Net sales 160.0 billion yen
Operating profit 14.5 billion yen(Operating margin 9.0%)

171.5
150

166.2

131
95.6

Operating profit(billion yen)

20.5(％:Operating margin)

19

In the Watches segment we achieve a steady recovery from the serious downturn of
FY2020 due to the COVID-19 pandemic, and like in FY2022, operating profit far
exceeded the pre-pandemic figure recorded in FY2018.
With the benefit of a weak yen, the operating margin reached 11.9%, surpassing thetarget of 9.0% set in our Medium-term Management Plan by a large margin.

19

Medium-term Management Plan 2024

Activities Watches Key Strategies

Global Brand Strategy for the CITIZEN Brand
Progress in the expansion of global brands

 PROMASTER: The brand is celebrating its 35th anniversary in 2024. It has been further
strengthened as a professional sports watch brand.
 CITIZEN L: Sales increased in the North American, Asian, and European markets as asustainable ladies’ watch brand.
 Series 8: Overseas expansion started accelerating in FY2023. Entry in the US market get fully
underway after the European market.

Release date: Fall/Winter 2024
Recommended retail price:
102,300 - 110,000 yen (tax included)
Number of models：3

Release date: April 4, 2024
Recommended retail price:
62,700 – 71,500 yen (tax included)
Number of models: 3

Release date: March 21, 2024
Recommended retail price:
198,000 – 209,000 yen (tax included)
Number of models: 3 (limited model included)

20

Here I would like to describe the Global Brand Strategy, one of our key strategies.
PROMASTER celebrated the 35th anniversary of its establishment this year.
We are further stepping up efforts to promote it as a professional sports watch fromthe CITIZEN brand in the global market.
In FY2023, we launched the global operation of CITIZEN L in earnest as anenvironmentally friendly, sustainable ladies’ watch brand.
Additionally, we have started the global operation of the Series 8 brand of mechanicalwatches.

20Medium-term Management Plan 2024

Activities Watches Key Strategies

Global Brand Strategy for the CITIZEN Brand
Progress in the expansion of global brands

 PROMASTER: Net sales have been steadily growing every year and sales activities increased in
North America and Japan.
 CITIZEN L: Global expansion led by new products started in earnest.
 Series 8: Product lines increased and sales grew in Europe. Sale started in North America this
year.

+24%

(vs FY2021)

+17%

+190%

(vs FY2021)(vs FY2021)

21

These charts show the growth rates of each global brand.
Sales of PROMASTER grew 24% in two years from FY2021.
Sales in North America and Japan increased, and we have been able to steadily growsales every year.
The growth rate of CITIZEN L was 17%. The global operation of the brand’s new products
started in FY2023.
Sales of Series 8 surged 190%. We started increasing product lines in FY2023 andsuccessfully grew sales in Europe.
We also plan to launch sales in North America in earnest this year.

21Medium-term Management Plan 2024

Activities Watches Key Strategies

Watches Premium brands and mechanical watches strategy
Increase brand presence to heighten unit sales priceIn Japan, the unit sales price was rising with the continued strong performance of CITIZEN ATTESA and
PROMASTER.
In North America, the unit sales price rose due to the introduction of high value-added products and theprice increases implemented for the CITIZEN and BULOVA brands.

Changes in unit sale prices in North
America (on a local currency basis)

Changes in unit sales price in Japan

140%

140%

130%

130%

120%

120%

110%

110%

100%

100%

* Percent change in unit sales price of CITIZEN brand products inJapan from FY2020* Percent change in unit sales price of CITIZEN and BULOVA
brand products in North America from FY2020 (on a local
currency basis)

22

Here I will explain about the changes in unit sales prices in the two major regions.
In the Japanese market, unit sales prices rose 22% from FY2020 thanks to continuously
strong performance of ATTESA and PROMASTER. In the North American market, unit
sales prices jumped 29% from FY2020 after the release of high value-added products
and price increases of the CITIZEN and BLUOVA brands.

22

Medium-term Management Plan 2024

Activities Watches Key Strategies

Premium brands and mechanical watches strategy
100th anniversary of the first CITIZEN watchThis year is the 100th anniversary of the first CITIZEN-branded watch. Special limited-edition pocket watch to belaunched in the fall of 2024 for the next 100 years.
To commemorate the centenary, CITIZEN is releasing a new themed collection - LAYERS of TIME - featuring
structural color dials inspired by the geological layers of rock and minerals that shaped our planet over millions ofyears.

Special Limited-Edition Pocket Watch

LAYERS of TIME Limited-Edition Models

Release date: Autumn, 2024
Recommended retail price: 1,100,000 yen (taxincluded)
100 units worldwide

Release date: May 28, 2024
Recommended retail price: 66,000 - 341,000 yen (tax included)
EXCEED (450 units worldwide), ATTESA (1,900 units/2,100 units worldwide),
PROMASTER (10,000 units worldwide, CITIZEN COLLECTION (2,400 units worldwide),xC (1,500 units worldwide), CITIZEN L (4,200 units worldwide)

23

Year 2024 is the anniversary of 100 years since 1924 when the first watch named
CITIZEN was released.
In the fall of this year, we will release a pocket watch built on Citizen’s technologies
developed in the last 100 years, which will be limited to the global market, to mark thestart of the Company’s growth in the next 100 years.
A cross-brand collection, Layers of Time, with the dial in a structural color expressing
the layering of time, will be released to commemorate the centenary as we work on
increasing the sales of the Citizen brand.

23

Medium-term Management Plan 2024

Activities

Machine Tools (Operating Performance)
Medium-term Management Plan 2024
Machine Tools FY2024 target

Net sales(billion yen)Net sales 86.0 billion yen
Operating profit 12.5 billion yen(Operating margin 14.5%)

Operating profit(billion yen)(％:Operating margin)

24

This slide shows operating performance in the Machine Tools segment.
Both net sales and operating profit fell below the targets set in the Medium-termManagement Plan due to the impact of the capital investment cycle.
Meanwhile, we reached the sales target of JPY 86.0 billion in FY2022, the first fiscal yearof the Medium-term Management Plan.
During this time, we have been steadily increasing our production capacity inpreparation for the next peak demand with the aim of achieving further growth.

24Medium-term Management Plan 2024

Activities for Machine Tools Key Strategies

Establishment of business foundations with an eye toward achieving the net sales of 100 billion yen.

Building a production base corresponding to net sales of 100 billion yen

Accelerate the enhancement of the production capacities with a long-term target of 100 billion yen in net sales
In May 2023, construction of the precision machining plant at the Karuizawa Headquarters was completed. The
production capacity of core components is now 60% higher than in FY2021.
Capital investment in China, Thailand, and the Headquarters was completed and the production capacity
became 40% higher than that in FY2021.

Precision machining plant at the Karuizawa
Headquarters
 Production capacity of core components
increased 60%
 Total floor area of the precision
machining plant: 4,459 m2
 Beginning of operations: May 2023

Thai Factory
 Production capacity increased 50% (to amaximum of 350 units per month) Extension area: 4,475 m2(Total floor area after extension: 27,488
m2)
 Beginning of operations: November 2022

China Factory
 Production capacity doubled (to amaximum of 350 units per month) Extension area: 34,200 m2
 Beginning of operations: February 2022

25

This describes the production capacity I just mentioned.
As you can see in the details here, we have increased our production capacity at the
Karuizawa head office, in Thailand, and in China.
Production capacity will increase 40% from FY2021 levels as a result of these capital
investments.

25

Medium-term Management Plan 2024

Activities for Machine Tools Key Strategies

Establishment of business foundations with an eye toward achieving the net sales of 100 billion yen.

Trend in the total number of LFV-equipped machines shipped globally The low frequency vibration-cutting (LFV) technology is Citizen's original processing technology thatfacilitates processing while simultaneously breaking chips into very fine pieces.
 Sales have increased in Asia since 2021 in addition to the Japanese, European, and US markets inwhich Citizen has strength.

Total
6,150 units
EuropeTotal
3,700 units
EuropeAmerica

Asia

America
Asia
Japan
Japan

FY2021

FY202326

This shows the sales of LFV-equipped products.
LFV is CITIZEN's proprietary control technology for processing chips while breaking
them up into fine pieces.
Sales of products equipped with LFV technology have increased in Asia since 2021 inaddition to developed markets in which Citizen has strength.
As of the end of January 2023, the global total number of products shipped had
increased by 2,400 units since 2021, exceeding 6,150 units. We are steadily
implementing value added strategies.

26

That concludes my presentation.
Thank you for your attention.

27

Reference

Capital expenditures/ Depreciation(billion yen)

Capex

25

Depreciation
22.4
22.0

20
17.4

15

13.0

10

10.9

11.5

11.1

11.2

FY2021

FY2022

10.7

12.3

5

0

FY2020

FY2023E

FY2024E

Accelerate investment in rationalization of Watches business and growth of Machine Tools
business based on "Medium-term Management Plan 2024”

Image of investment distribution: Watches segment + Machine Tools segment over 70%
28

28

Reference

Shareholder returns
Medium-term Management Plan 2024

Dividends forecasts for FY2024

Dividend policy for FY2022 to FY2024







Emphasis on continued payment of stable
Dividends
A dividend payout ratio of around 50%
Acquisition of treasury stock: to be judged
flexibly depending on the situation

Dividends per share

45.0 yen (Full year)(Second quarter 20.5 yen /Year-end 20.5 yen)(billion yen)

dividends
paid Total
Total
acquisitioncost
cost(Resolution)(Resolution)
TotalTotal
dividends
paid
acquisition

2040

40.0

35
1530

25
1020

15

9.3
6.3

9.3

5 10

5
00

10.3

10.0

3.7

5.5

5.5

9.7

11

10.0

1.5

3.0

FY2020FY2018FY2019 FY2021

1.5

FY2020

FY2022FY2021

FY2023
FY2022

FY2024E
FY2023E

29

29