Earning Presentation
for Three months ended June 30, 2024

August 13, 2024

1

Contents

Earning Presentation for Three months ended June 30, 2024

Financial Results

p4

Result by Business Segments

p5

Watchesp6

Machine Tools

p 11

Devices and Components

p 13

2

My name is Toshiyuki Furukawa, in charge of the Public & Investor Relations
Department.
I will provide an explanation of the financial results for the first quarter of fiscal
2024.

2

Financial Results for 1Q of FY 2024

3

3

Financial Results for 1Q of FY 2024
1Q (Apr.-Jun.)（billions of yen)

FY2023

FY20241Q(Apr-Jun)

1Q(Apr-Jun)

ResultResultYoY Change
Amount％Net sales

72.6

75.8

+ 3.1

+4.4%

Operating profit

5.5

4.6

( 0.8 )

( 15.4% )Operating margin

7.6%

6.2%

-

-

Ordinary Profit

8.0

7.3

( 0.6 )

( 8.2% )

6.2

8.5

+ 2.2

+36.0%¥135/USD¥155/USD¥147/EUR¥167/EUR

Profit attributable toowners of parent

Exchange rate

* A gain on sale of investment securities of approx. 4.8 billion yen
4This is a summary of our profit and loss statement.
Net sales increased 4.4% year on year to JPY 75.8 billion due to the solid
performance of the Watches business, partly aided by foreign exchange rates.
On the other hand, operating profit decreased 15.4% year on year to JPY 4.6
billion, mainly due to an increase in advertising expenses in the Watchesbusiness and a decline in sales in the Machine Tools business.
Ordinary profit decreased 8.2% year on year, to JPY 7.3 billion. However, profit
attributable to owners of parent rose 36% year on year to JPY 8.5 billion due toa gain on sale of investment securities and other factors.

4

Financial results by Business Segments for 1Q of FY 2024

Net sales(billions of yen)

FY2023

FY20241Q(Apr-Jun)

1Q(Apr-Jun)

ResultResultYoY Change
Amount％Watches

37.0

41.1

+ 4.0

+10.9%

Machine Tools

19.5

17.9

( 1.6 )

( 8.2% )Devices and Components

10.8

10.5

( 0.3 )

( 3.6% )Electronic and Other Products

5.2

6.3

+ 1.1

+21.8%

Consolidated Total

72.6

75.8

+ 3.1

+4.4%

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

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

Consolidated Total

4.5

3.6

12.2%

8.9%

2.3

1.3

12.0%

7.3%

0.0

0.4

0.4%

4.0%

0.1

0.8

2.9%

13.6%

( 1.5 )

( 1.5 )

5.5

4.6

7.6%

6.2%

( 0.8 )

( 19.7% )( 1.0 )

( 43.9% )+ 0.3+770.1%+ 0.7+476.1%+ 0.0-( 0.8 )

( 15.4% )Business Segments

Results

 Watches

Sales increased andprofit decreased

 Machine Tools

Sales and profit
decreased Device andComponents

Sales decreased andprofit increased Electronic andOther Products

Sales and profit
increased

5

Slide 5 shows a breakdown of net sales and operating profit by businesssegment. The Watches business recorded an increase in sales but a decreasein profit. In the Machine Tools business, both sales and profit fell. In the Devices
and Components business, sales were down but profit was up. In Electronic
and Other Products a rise of both sales and profit was achieved.
I will provide an update on the main businesses in the following slides. Before
that, please let me touch on the Electronic and Other Products business, where
sales remained on an upside trend compared to the plan, largely due tohigher-than-expected sales of photo printers.

5

Watches （Operating Performance)
1Q (Apr.-Jun.)

Sales increased and profit decreased Finished watch
Sales

In the domestic market, sales of key brands remained strong and demand fromforeign visitors in Japan increased. Among overseas market, Sales in China declined
largely due to the weakening market, but the European and American markets
remained strong and sales of finished products as a whole increased.

 Movement Sales

Sales increased, reflecting the strong performance of value-added products,
centered on mechanical movements.

Net Sales (billions of yen)

Operating Profit (millions of yen) and Margin (%)■FY2023 ■FY2024■FY2023 ■FY2024

6

Slide 6 shows the results for the Watches segment.
Net sales were JPY 41.1 billion, up 10.9% year on year. Operating profit was JPY
3.6 billion, a 19.7% decrease year on year.
Finished watch sales increased due to strong sales of mainstay products suchas ATTESA in the domestic market, coupled with the growth of demand frominbound tourists. Overseas, sales in Asia remained stagnant mainly due to thesluggish market conditions in China. However, aided by strong market
conditions in Europe, overall sales increased.
Movement sales grew, reflecting continuing strong demand for mechanicalmovements, as well as solid sales of highly functional analog quartz
movement models.
Net sales were in line with the plan even excluding the impact of foreignexchange rates. However, operating profit decreased from the previous year,
mainly reflecting an increase in advertisement expenses linked to the 100th
anniversary of the first CITIZEN brand watch and the effects of movement
inventory adjustments.

6

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

Sales by region
Region Japan

Net Sales
growth YoY

Details

Increased

Sales of core brands such as ATTESA
and xC and also premium brands
such as The CITIZEN increased.
Demand from foreign visitors in Japangrew.

 Asia*Chinaincluded

Sales in China significantly fell due toweakening market.
Decreased America

Slightly
Decreased Europe

Increased

Some markets such as Thailand
appeared to be trending toward a
recovery.
Sales at jewelry chain stores anddepartment stores remained strong.
Purchase adjustments were made intravel distribution.
The solid performance recorded
mainly in the UK and Italy.

7

We are now looking at net sales growth by region on a local currency basis.
In Japan, which is shown by the red bar in the bar graph, net sales increased
due to strong sales of ATTESA, xC, The CITIZEN and other models, as well as thegrowth of inbound tourism demand on the back of the rise in the number oftourists from China.
Net sales in Asia, which is the light green bar, decreased, reflecting asignificant decline in sales in China due to its weakening market conditions,despite signs of a recovery in certain markets such as Thailand.
The light blue bar shows North America, where net sales declined slightly year
on year due to the impact of purchase adjustments in tourism distribution
channels, despite solid sales in mainstay distribution channels such as jewelry
chains and department stores.
In Europe, which is indicated by the light purple bar, an increase in net sales
was recorded, reflecting the solid performance achieved chiefly in the United
Kingdom and Italy.

7Medium-term Management Plan 2024

Activities Watches Key Strategies

Premium brands and mechanical watches strategy
The CITIZEN

100th Anniversary of the First CITIZEN Watch Limited Edition Model

Eco-Drive with Annual Accuracy ±5 Seconds



The case and band use Super Titanium™, a light scratch-resistant material.

A model with a creative dial featuring indigo Japanese paper made using the pole-wrap shibori techniqueRelease date: May 28, 2024
Recommended retail price: 462,000 yen (tax included)
Limited to 600 pieces worldwide

8Here, I would like to share news about new products.
This year is a milestone for us because it is the 100th anniversary of theestablishment of CITIZEN brand watches.
To celebrate the anniversary, we launched a limited-edition model of The
CITIZEN, the top-end model.
The watch is equipped with a high-accuracy light-powered Eco-Drive
movement with annual accuracy of +/-5 seconds. In addition, it features acreative indigo-dyed washi paper dial face made uniquely using the polewrap shibori technique, a method that has been used mainly for dyeing fabric.
The model was released on May 28 and the quantity allocated for domestic
sales has been sold out on a shipment basis.

8Medium-term Management Plan 2024

Activities Watches Key Strategies

Global Brand Strategy for the CITIZEN Brand
PROMASTER


35th ANNIVERSARY LIMITED EDITIONSLimited MARINE, SKY and LAND models are being released in succession

1st: MECHANICAL DIVER 200m which is the successor to the Challenge Diver design
2nd: Eco-Drive RADIO-CONTROLLED that evokes the midnight sun
3rd: Eco-Drive COMBINATION WATCH equipped with the newly developed caliber

MECHANICAL DIVER 200ｍ
Release date: June 6, 2024
Recommended retail price: 143,000 yen (tax included)
Limited to 4,500 pieces worldwide

Eco-Drive RADIO-CONTROLLED
Release date: August 9, 2024
Recommended retail price: 121,000 yen (tax included)
Limited to 5,600 pieces worldwide

Eco-Drive COMBINATION WATCH
Release date: October 10, 2024
Recommended retail price: 154,000 yen (tax included)
Limited to 5,900 pieces worldwide

9

The next is PROMASTER, a brand that we are strengthening to promote as a
global brand.
This year is the 35th anniversary of the establishment of PROMASTER. To
celebrate it, we are in the process of releasing limited-edition models in the
Marine, Sky and Land categories.
To start, we launched the Mechanical Diver 200m model that reflects thedesign adopted in the Challenge Diver, a model nicknamed Barnacle Diverwatch.
The second model is an Eco-Drive radio-controlled watch featuring a design
developed on the theme of the midnight sun.
The third model is an Eco-Drive Combination watch equipped with an analog
and digital dial face, as well as a newly developed caliber.
These models are being released in succession.

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Watches: Topics
Core Brands in the Domestic, Middle Price Range Market


ATTESA

Powerful, lightweight, and sophisticated design. Significant contribution to strong domestic sales

xC

Top selling women’s watch brand for ten consecutive years
Continues to grow as our main brand in Japan

It is the number one choice because its
functionality and design are suited for any
occasion.
ATTESA was the best-selling* men’s titanium watch brand in
the domestic middle price range market in 2023.
*Among men’s titanium watch brands priced from 50,000 yen to 300,000 yen (excluding smartwatches)
Based on sales volume at retailers (both physical and online stores) in Japan in 2023
Based on research conducted by Euromonitor International in April and May 2024

Best-selling. Number one choice
Since its release in 1996, xC (Cross C) has been the choice of
women seeking a really good watch.
This year is the 10th consecutive year in which xC has been
the best-selling* women’s watch brand in the domestic
market.
Quality, beauty and functionality
We will continue to polish this value forever.
*Among women’s watch brands priced 30,000 yen to 100,000 yen (excluding smartwatches)
Based on sales volume at retailers (both physical and online stores) in Japan in 2023
Based on research conducted by Euromonitor International in April and May 2024

10

To conclude the Watches business section, I will explain the two mainstay
brands sold in Japan.
First, ATTESTA, a titanium watch that symbolizes the wealth of Citizen’s
technologies. The products are robust, lightweight and have sophisticateddesigns, and ATESSA has contributed significantly to the expansion of sales inJapan, as it did in the previous year.
Meanwhile, xC, aims to be a brand empowering and supporting all women. It
has been used by women in a broad range of age groups and it continues togrow as the main brand of watches for women.
According to a survey conducted by an external organization, in terms of thevolume of sales of watches in the middle range price market, ATTESA watches
were the top-selling titanium watches for men, while xC watches have been
the top-selling watches for women for 10 consecutive years.
We believe there are signs that demand for women’s watches will recover,although this has been slow compared to men’s watches.

10Machine Tools （Operating Performance)
1Q (Apr.-Jun.)

Sales and profit decreased Domestic market

Sales decreased due to a lack of recovery of automobile-related products in response
to ongoing restraint on capital spending.

 Overseas markets

Sales decreased due to a limited appetite for capital expenditures for products otherthan medical-related products in the American and European markets, Chinese
market despite sales increase, and absence of signs of recovery in other Asia markets.

Net Sales (billions of yen)

Operating Profit (millions of yen) and Margin (%)■FY2023 ■FY2024■FY2023 ■FY2024

11

Next, I will move on to the Machine Tools business.
Net sales were JPY 17.9 billion, down 8.2% year on year. Operating profit
decreased 43.9％ from the previous year to JPY 1.3 billion.
Domestically, net sales decreased mainly due to the absence of a recovery inautomobile-related demand amid the continuing cautious attitude toward
capital expenditures.
Looking overseas, Europe and the United States saw the continuation of a waitand-see attitude toward capital expenditures for products other than
medical-related items. In Asia, sales increased in China. However, net sales
decreased due to the absence of signs of a recovery of the market conditionsin other Asian countries.
In terms of comparisons with the previous year, one of the factors that
decreased operating profit was the worsening of the product mix linked tochanges in sales by region, specifically, a decrease in sales in Japan and anincrease in sales in China.

11

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

Number of products ordered in the first quarter by region (year-on-year comparison)● Total+12%● Japan(87%)

Significantly decreased due to a decrease in inquiries due to the sluggish market and a reactionary
fall from the last-minute surge before the price increase in March● Asia+95%

Significantly increased due to strong sales in India and promotion of orders in China by government
subsidies● America+71%

Increased mainly in medical-related products● Europe(18%)

Remained low due to a limited appetite for capital expenditures as a result of the entire European
market continuing to be sluggish

12This slide shows the status of orders received by region.
The line graph shows the three-month moving average of orders received andthe percentage change year on year.
Our assessment is that, overall, orders received have been trending toward amoderate recovery since the last-minute surge in demand in March before
the price hike, but the situation differs among individual regions. As in thepreceding quarter, orders received as a whole continued to exceed sales.
The table in the lower part of the slide shows the year-on-year comparison oforders received in the first quarter. The total number of products for which
orders were received increased 12% year on year. By region, orders received
decreased sharply in Japan, 87% year on year, reflecting a reactionary decline
from the last-minute surge in demand in March before the price increase,coupled with the continuation of the cautious attitude toward automobilerelated capital expenditures.
In Asia, orders soared 95% year on year, reflecting brisk inquiries in India and asurge in orders received in China due to the effect of subsidies.
In the United States, orders received increased 71% year on year due to a rise inorders mainly for medical-related products, although a wait-and-see attitude
was observed as the presidential election draws near.
In Europe, orders decreased 18% year on year due to the absence of signs of arecovery of automobile-related capital expenditures, although orders for12medical and dental products were solid.

12Devices and Components（Operating Performance)
1Q (Apr.-Jun.)

Sales decreased and profit increased

 Auto Components

Sales increased due to strong results in overseas markets despite the impact ofdomestic market trends.

 Small Motors

Net sales remained at the level of the previous year because of the solid performanceof medical-related products in particular.

 Other Devices

Sales of quartz devices and opto-devices decreased due to low demand.

Net Sales (billions of yen)

Operating Profit (millions of yen) and Margin (%)■FY2023 ■FY2024■FY2023 ■FY2024

13

Finally, I will move on to the Devices and Components business.
Net sales came to JPY 10.5 billion, down 3.6% year on year. Operating profit
increased to JPY 0.4 billion.
Sales of auto components remained steady, mainly in overseas markets, andsales of small motors remained at the level of the previous year, reflecting thesolid performance of medical-related products in particular.
Sales of other devices decreased overall. Even so, operating profit rose as aresult of business remaining firm and partly due to the impact of foreignexchange rates.

13

The forward-looking statements in this presentation material are
based on information available as of the date of the announcementof this presentation material, and actual results may differ
significantly due to various factors.
Note that amounts less than 100 million yen are rounded down.

Please let me conclude my explanation by adding that we have not changed
the consolidated earnings forecasts. The previous forecasts which weannounced in May remain unchanged.
That concludes this presentation. Thank you very much.

14

Reference

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

15

15

Reference

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%

16

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