CITIZEN WATCH CO., LTD.

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

August 13, 2024

Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Under Japanese GAAP)
Company name: CITIZEN WATCH CO., LTD.
Listing:
Tokyo Stock Exchange
Securities code: 7762
URL:
https://www.citizen.co.jp/global
Representative: Toshihiko Sato, President and CEO
Inquiries:
Toshiyuki Furukawa, Managing Director, In charge of Public & Investor Relations Department
Telephone:+81-42-468-4934
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June30, 2024)(1) Consolidated operating results (cumulative)
Net sales
Three months
ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

June 30, 2024

75,8884.4

4,684(15.4)

7,347

(8.2)

8,534

36.0

June 30, 2023

72,695

1.9

5,537

(0.9)

8,001

(6.5)

6,280

(13.5)

Note: Comprehensive income For the three months ended June 30, 2024: ¥15,520 million
For the three months ended June 30, 2023: ¥19,606 million
Basic earnings
per share
Three months
ended

%

[(20.8%)][3.6%]

Diluted earnings
per share
Yen

Yen

June 30, 2024

35.04

-

June 30, 2023

25.16

-

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

June 30, 2024

432,274

266,65459.7

1,058.62

June 30, 2023

415,445

256,13459.6

1,015.74

Reference: Shareholder’s Equity
As of June 30, 2024:
As of June 30, 2023:¥258,113 million¥247,659 million

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CITIZEN WATCH CO., LTD.
2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarterend

Third quarter-end

Yen

Yen

Yen

Yen

Yen

-

20.00

-

20.00

40.00

22.50

-

22.50

45.00

Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025

Fiscal year-end

Total

-

Fiscal year ending
March 31, 2025
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Projected Consolidated Results for the Year ending March 31, 2025
(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Operating profit% Millions of yen

Ordinary profit% Millions of yen

Earnings
per share

Net income% Millions of yen%

Yen

Interim term

151,000(1.3)

11,000 (18.8)

12,200 (30.0)

12,500 (6.6)

51.27

Full term

310,000(0.9)

23,00025,500 (17.2)

22,000 (4.2)

90.23

(8.3)

Note: Revisions to the forecast of cash dividends most recently announced: None

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CITIZEN WATCH CO., LTD.
* Notes(1) Significant changes in the scope of consolidation during the period: None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)
As of(i) Total number of issued sharesat the end of the period
June 30, 2024
(including treasury shares)

sharesAs ofshares246,000,000

March 31, 2024

246,000,000

June 30, 2024

2,179,003

March 31, 2024

2,178,601

June 30, 2024

243,821,172

June 30, 2023

249,631,314(ii) Number of treasury stock at theend of period(iii) Average number of shares

outstanding during the period(cumulative from the beginningof the fiscal year)* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or an audit firm: Yes (voluntary)* Proper use of earnings forecasts, and other special matters

Statements above relating to financial forecasts are based on information available to the Company andcertain assumptions the Company considers reasonable as of the date of the announcement of thesestatements. Actual results may differ materially from these forecasts, depending on a variety of factors.
Please refer to the attached “Explanation of the Consolidated Earnings Projections and Other Forecasts”
on page 6 for assumptions underlying the above forecasts and precautions regarding their use.

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CITIZEN WATCH CO., LTD.
○(Attached Documents) Index

1. OVERVIEW OF OPERATING RESULTS AND FINANCIAL POSITION .................................. 5(1)

Overview of Operating Results for the Three Months Ended June 30, 2024.............................................5(2)

Overview of Financial Position for the Three Months Ended June 30, 2024 .............................................6(3)

Explanation of the Consolidated Earnings Projections and Other Forecasts ............................................6

2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND PRIMARY NOTES .......... 7(1)

Quarterly Consolidated Balance Sheet ......................................................................................................7(2)

Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ..9(3)

Notes on Quarterly Consolidated Financial Statements .......................................................................... 11(Change in accounting policies)................................................................................................................... 11(Notes to segment information)....................................................................................................................12(Notes regarding significant changes in shareholders’ equity accounts)...............................................12(Notes related to of going concern assumption) ........................................................................................12(Notes related to statement of cash flows) .................................................................................................13

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CITIZEN WATCH CO., LTD.

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Three Months Ended June 30, 2024
During the first three months of the fiscal year under review, the Japanese economy weakened due tocautious consumer spending, the result of increased thriftiness in response to rising commodity prices. In the
North American economy, consumer spending tended to slow despite an improvement in income andemployment conditions thanks to a decrease in the inflation rate. The European economy maintained a recovery
in consumer spending, albeit lacking strength, in response to a slowdown in rising commodity prices. In Asia, theChinese economy remained sluggish, and the performance of other economies in the region varied dependingon the country, despite the positive effect of a recovery in exports that produced a moderate recovery inconsumer spending.
In this environment, the Citizen Group’s consolidated results for the first three months of the fiscal year underreview showed an increase in sales with net sales of 75.8 billion yen (up 4.4% year on year), aided mainly by thesolid performance of Watches. However, operating profit decreased 15.4% year on year to 4.6 billion yen.
Ordinary profit decreased to 7.3 billion yen (down 8.2% year on year) while profit attributable to owners of parent
increased to 8.5 billion yen (up 36.0% year on year) due to a gain on sale of investment securities.
WatchesIn the domestic market, sales of Citizen brand watches increased, reflecting the strong performance of thepremium brand, The CITIZEN, in addition to core brands such as ATTESA and xC, and the growth of inboundtourism-related demand, despite a decline in consumer confidence linked to high commodity prices.
Among overseas markets, sales in North America increased thanks to strong sales for distribution to jewelry
retail chains and department stores and strong sales of new products. The European market also achieved sales
growth due to the solid performance recorded mainly in the UK and Italy in response to a recovery in consumer
spending. Sales in Asia decreased due to a significant fall in sales in China amid the weakening market, which
outweighed recovery trends in Thailand and certain other markets.
Sales of Bulova brand watches rose thanks to strong sales for department store distribution and online retail,which offset weak sales for jewelry chain stores as the leading distribution channel in the mainstay North
American market.
Sales of movements grew as a result of strong performance of value-added products led by mechanicalmovements, despite some weakness in major markets.
As a result, notwithstanding concerns about a decline in consumer confidence linked to the long-term priceincreases occurring globally, thanks to the progress made in initiatives for the enhancement of sales of global
brands, premium brands and mechanical watches, the watches segment as a whole posted an increase in sales,with net sales of 41.1 billion yen (up 10.9% year on year). Operating profit fell to 3.6 billion yen (down 19.7%
year on year) due to an increase in advertising expenses associated with 100th anniversary of the first “CITIZEN”
watch.
Machine Tools
Sales in the domestic market declined due to a lack of recovery of automotive products in response to ongoing
restraint on capital spending and slow sales of products related to semiconductors and construction equipment
due to an uncertain market outlook. Sales in the overseas markets decreased given a limited appetite for capital
expenditure, excluding that related to medical and jewelry, in the Americas and Europe, Chinese market despitesales increase, and absence of signs of recovery in other Asian markets.
As a result, net sales in the machine tools segment as a whole decreased to 17.9 billion yen (down 8.2% year
on year). Operating profit decreased to 1.3 billion yen (down 43.9% year on year) due to lower sales and the
product mix impact.

5

CITIZEN WATCH CO., LTD.
Devices and Components
Sales of automotive parts increased thanks to strong result in the overseas markets despite the impact ofdomestic market trends. Sales of small motors remain at the level of the previous year as a result particularly of
the solid performance of medical products. Sales of quartz devices decreased due to a lack of recovery indemand of markets for PC- and IoT-related products. Sales of opto-devices also fell due to sluggish demand.
As a result, net sales for the devices and components segment as a whole decreased 10.5 billion yen (down
3.6% year on year) while operating profit increased to 0.4 billion yen (up 770.1% year on year) benefiting fromfavorable exchange rates.
Electronic and Other Products
Sales of information equipment rose as a result of sales of POS printers and bar code printers remaining at
the level of the previous year thanks to a moderate recovery of the domestic and North American markets, stabledemand for photo printers, and the release of new products. Sales of healthcare equipment decreased given
ongoing weakness in demand for thermometers, which offset a recovery in blood pressure monitors.
As a result, the electronic and other products segment overall recorded increases in sales and profit, with net
sales of 6.3 billion yen (up 21.8% year on year) and operating profit of 0.8 billion yen (up 476.1% year on year).
(2) Overview of Financial Position for the Three Months Ended June 30, 2024
Total assets at the end of the first three months of the consolidated fiscal year under review stood at 432.2
billion yen, an increase of 16.8 billion yen from the end of the previous consolidated fiscal year. Current assets
increased by 17.2 billion yen, principally due to a 7.8 billion yen increase in cash and deposits and a 5.4 billion
yen increase in inventories. Non-current assets decreased by 0.4 billion yen, mainly reflecting a 1.1 billion yen
increase in total property, plant and equipment and a 2.8 billion yen decrease in investment securities.
Liabilities increased by 6.3 billion yen from the end of the previous consolidated fiscal year, to 165.6 billion yen.
This was mainly due to increases of 1.3 billion yen in notes and accounts payable - trade and 2.1 billion yen inprovision for bonuses.
Net assets increased by 10.5 billion yen from the end of the previous consolidated fiscal year, to 266.6 billion
yen, chiefly reflecting increases of 3.6 billion yen in retained earnings and 8.7 billion yen in foreign currencytranslation adjustment.
(3) Explanation of the Consolidated Earnings Projections and Other Forecasts
No changes have been made to the six-month and full-year forecasts for the consolidated fiscal results in thefiscal year ending March 31, 2025 announced on May 13, 2024 in the Consolidated Financial Statements for theYear Ended March 31, 2024.

6

CITIZEN WATCH CO., LTD.

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet
As of March 31,
2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Consumption taxes refund receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7(Millions of Yen)
As of June 30,
2024

81,31257,754
3,056
64,977
26,472
24,6002,659
8,178(1,272)
267,741

89,13258,964
3,091
68,41727,03326,087
3,363
10,275(1,335)
285,030

43,146
18,634
4,477
10,5297,722
3,477
87,987

43,63818,804
4,491
10,635
7,785
3,751
89,107

4,368
837
5,206

4,265
881
5,146

46,602
182
6,058
1,979
(313)
54,510147,703415,445

43,799
193
6,150
3,176
(330)
52,989147,243432,274

CITIZEN WATCH CO., LTD.

As of March 31,
2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Notes payable - facilities
Electronically recorded obligations - non-operating
Short-term borrowings
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for product warranties
Provision for loss on reorganization
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Provision for loss on reorganization
Retirement benefit liability
Lease liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

8(Millions of Yen)
As of June 30,
2024

18,712
9,482
115
2,057
10,0772,315
12,252
6,548
328
1,264
104
12,38175,641

20,070
9,726
55
1,825
10,175
4,161
13,206
8,681
－
1,265
101
12,13981,40810,00042,4335,334
516,777
7,380
1,737
83,668159,310

10,00042,3605,407
517,496
7,264
1,678
84,211
165,620

32,64833,739124,466(1,698)189,156

32,64833,739128,124(1,698)
192,814

16,561
41,558382
58,502
8,475
256,134
415,445

14,90450,31678
65,2998,540
266,654432,274

CITIZEN WATCH CO., LTD.
(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income for the three months ended June 30, 2024
（Millions of yen）
Three months ended Three months ended
June 30, 2023
June 30, 2024
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for purchase of treasury shares
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of non-current assets
Impairment losses
Reorganization cost
Loss on valuation of investment securities
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

972,69542,14330,55125,014
5,537

75,88843,66132,22627,542
4,684

330
470
406
1,910
105
3,223

364
425
244
1,612
137
2,785

69
586
103
758
8,001

74
－
47
122
7,347

11
554
1
567

392
4,866
4
5,263

26
3
2
2
22
4
60
8,508
2,287
6,220
(59)
6,280

14
0
－
0
－
1
16
12,593
4,039
8,554
10
8,543

CITIZEN WATCH CO., LTD.
Quarterly Consolidated Statement of Comprehensive Income for the three months ended June 30, 2024
(Millions of Yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
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 of parent
Comprehensive income attributable to non-controlling interests

10

Three months ended Three months ended
June 30, 2023
June 30, 2024
6,220
8,554
2,922
9,998
(32)
496
13,385
19,606(1,657)
8,521
(305)
408
6,966
15,52019,492
113

15,339181

CITIZEN WATCH CO., LTD.
(3) Notes on Quarterly Consolidated Financial Statements(Change in accounting policies)(Application of Accounting Standard for Current Income Taxes, etc.)
The Company has applied Accounting Standard for Current Income Taxes (Accounting Standards Board ofJapan (ASBJ) Statement No. 27, October 28, 2022; hereinafter referred to as the “Revised Accounting Standard
2022”) effective from beginning of the first quarter of the fiscal year under review.
The amendment to categories in which current income taxes should be recorded (taxes on othercomprehensive income) follows the transitional treatment prescribed in the proviso of paragraph 20-3 of the
Revised Accounting Standard 2022 and the transitional treatment prescribed in the proviso (2) of paragraph 65-2of the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022;
hereinafter referred to as the “Revised Implementation Guidance 2022”). This change in accounting policies has
no impact on the quarterly consolidated financial statements.
For the amendment related to the revised accounting treatment for consolidated financial statements when
gains or losses on sale of shares in subsidiaries resulting from transactions between consolidated companies
were deferred for tax purposes, the Revised Implementation Guidance 2022 has been adopted from the
beginning of the first quarter of the fiscal year under review. This change in accounting policies is applied
retrospectively, and quarterly consolidated financial statements and consolidated financial statements for theprevious year are after retrospective application. This change in accounting policies has no impact on thequarterly consolidated financial statements for the same quarter of the previous fiscal year and the consolidated
financial statements for the previous fiscal year.

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CITIZEN WATCH CO., LTD.
(Notes to segment information)(i) Three months ended June 30, 2023 (April 1, 2023 to June 30, 2023)
Net sales and profit or loss by reporting segment(Unit: Millions of yen)
Watches

MachineTools

Devices andcomponents

Electronic
and otherproducts

Segment
totalsEliminations or
generalcorporate(Note 1)

Totals on
consolidated
statement ofincome(Note 2)

Net sales
Customers
37,071
19,527
10,8885,207
72,69572,695Inter-segment
21
54
430
171
678
(678)
Total
37,093
19,581
11,3195,379
73,373(678)
72,695
Segment profit
4,532
2,343
48
150
7,074
(1,537)
5,537
or loss(Notes)1. The 1,537 million yen negative adjustment to segment income (Operating profit) includes 21 million yen ininter-segment eliminations and 1,558 million yen in corporate expenses that could not be allocated to a particularsegment.
2. Segment profits or loss are adjusted with Operating profit on the consolidated financial statements.
(ii) Three months ended June 30, 2024 (April 1, 2024 to June 30, 2024)
Net sales and profit or loss by reporting segment(Unit: Millions of yen)
Watches

MachineTools

Devices andcomponents

Electronic
and otherproducts

Segment
totalsEliminations or
generalcorporate(Note 1)

Totals on
consolidated
statement ofincome(Note 2)

Net sales
Customers
41,115
17,927
10,501
6,344
75,88875,888Inter-segment
17
68
510
163
759
(759)
Total
41,132
17,995
11,011
6,507
76,648(759)
75,888Segment profit
3,641
1,314
418
864
6,239
(1,555)
4,684
or loss(Notes)1. The 1,555 million yen negative adjustment to segment income (Operating profit) includes 21 million yen ininter-segment eliminations and 1,576 million yen in corporate expenses that could not be allocated to a particularsegment.
2. Segment profits or loss are adjusted with Operating profit on the consolidated financial statements.
(Notes regarding significant changes in shareholders’ equity accounts)
Not applicable(Notes related to of going concern assumption)
Not applicable

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CITIZEN WATCH CO., LTD.
(Notes related to statement of cash flows)
The Group has not prepared a quarterly consolidated statement of cash flows for the first three months of the
fiscal year under review. Depreciation (including amortization of intangible assets) for the first three months of
the fiscal year under review is as follows:

Depreciation

Three months ended June 30, 2023

Three months ended June 30, 2024

Millions of yen
2,778

Millions of yen
3,311

13