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Consolidated Financial Statements
for the Nine Months Ended December 31, 2023
These financial statements have been prepared for reference only in accordance with accounting principles
and practices generally accepted in Japan. All figures in these statements which are less than 1 million yen
have been rounded down. (English translation)
February 13, 2024
Listings: Prime section of Tokyo Stock Exchange

CITIZEN WATCH CO., LTD.

Code No.: 7762
(URL https://www.citizen.co.jp/global)
Representative: Toshihiko Sato, President and CEO
Contact: Toshiyuki Furukawa, Managing Director, In charge of Public & Investor Relations Department
Tel: +81 -42 -468 -4934
Scheduled release of fiscal 2023 Quarterly Business Report: February 13, 2024

1. Results for the Nine months ended December 31, 2023 (April 1, 2023 to December 31, 2023)(1) Consolidated operating results(Millions of yen; Percentages represent changes over the previous fiscal year)
Net sales
Nine months ended
December 31, 2023

238,894

3.8%

Ordinary profit

23,416

11.3%

27,478

12.4%

20,6905.0%

7.1%

24,4409.5%

19,697

14.6%

Nine months ended

230,178
6.8%
21,032
December 31, 2022
Note: Comprehensive income:Nine months ended December 31, 2023: ¥ 32,757 million
Nine months ended December 31, 2022: ¥ 26,097 million

Fully diluted earnings
per share
(Yen)

84.19

-

67.26

-

December 31, 2023
Nine months ended
December 31, 2022

(2)

25.5%
16.5%

Earnings per share(Yen)
Nine months ended

Profit attributable toowners of parent

Operating profit

Consolidated financial position(Millions of yen)
Total assets

Nine months ended
December 31, 2023

March 31, 2023

Net assets

Equity ratio

Net assets per
share
(Yen)

403,608

243,230

58.2%

962.84

389,982

232,77557.5%

866.68Reference: Shareholders’ Equity:
As of December 31, 2023: ¥ 234,760 million

As of March 31, 2023: ¥ 224,179 million
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2. Dividends
Dividends per share (Yen)End of the
End of thesix-monthnine-month
End of the year
periodperiodEnd of thethree-month
periodMarch 31, 2023-

March 31, 2024

15.00

Full year

-

19.00

34.00

-

20.00

40.00

20.00

March 31, 2024(E)Note: Revision of dividend forecast for quarter in review: None

3. Projected Consolidated Results for the Year ending March 31, 2024
(Millions of yen)
(Percentages represent changes over the corresponding period of the previous fiscal year)
Net sales
Full term

310,000

2.9%

Operating profit

Ordinary profit

25,00028,5005.4%

Note: Revision of consolidated forecasts for quarter in review: None2

(2.1％)Net income
21,000(3.8％)

Earnings
per share
(Yen)
81.19

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4.

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Others(1)

Important changes of subsidiaries during the term (change of specified subsidiaries that lead to a change inthe scope of consolidation): None(2)

Adoption of simplified accounting method and special accounting methods: None

(3)

Changes in principles, procedures and classifications of accounting standards associated with the
preparation of consolidated financial statements.
(i) Changes associated with revised accounting standards: None(ii) Changes other than those in (i)above: None(iii) Changes in accounting estimate: None(iv) Restatements: None(4)

Number of shares issued and outstanding (common stock)shares(i) Number of shares issued andDecember 31,
outstanding at the end of term
246,000,0002023(including treasury stock)(ii) Number of treasury stock at the December 31,
2,177,673
2023
end of term(iii) Average number of common
December 31,
245,757,696
stocks2023

sharesMarch 31, 2023

294,000,000

March 31, 2023

35,334,190

December 31,
2022

292,843,006* The consolidated financial statements are not included in the scope of the audit.
* Explanation about the proper use of financial forecasts and other important notes
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 “Qualitative data on the consolidated earnings forecasts” on page 7 forassumptions underlying the above forecasts and precautions regarding their use.

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WATCH(Attached Documents)○INDEX

1. QUALITATIVE INFORMATION ON THE CONSOLIDATED FINANCIAL RESULTS FOR THE
NINE MONTHS ENDED DECEMBER 31, 2023 ................................................................... 5(1)

Qualitative data on the consolidated financial results...............................................................................5(2)

Qualitative data on the consolidated financial position .............................................................................6(3)

Qualitative data on the consolidated earnings forecasts ..........................................................................7

2. CONSOLIDATED FINANCIAL STATEMENTS AND PRIMARY NOTES ...................... 8(1)

Consolidated Balance Sheet ....................................................................................................................8(2)

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...............10

Consolidated Statement of Income for the Nine months ended December 31, 2023

10

Consolidated Statement of Comprehensive Income for the Nine months ended December 31, 2023

11

(3)

Notes on the Consolidated Financial Statements...................................................................................12(Notes related to of going concern assumptions)

12(Notes regarding significant changes in shareholders’ equity accounts)

12(Segment information)

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1. Qualitative Information on the Consolidated Financial Results for the Nine months ended December
31, 2023(1) Qualitative data on the consolidated financial results
During the first nine months under review, the Japanese economy continued to experience a moderate
recovery in consumer spending, reflecting the normalization of economic activity. In North America and Europe,
consumer spending remained firm due partly to increases in wages and employment, despite growing concern
over an economic recession linked to inflation and rising interest rates. The Chinese economy experienced asluggish recovery following the resumption of normal economic activity. Meanwhile, recoveries in other Asian
regions were only moderate due to the lack of momentum in exports and weak demand for capital spending.
In this environment, the Citizen Group’s consolidated results for the nine months of the fiscal year under review
showed increases in sales and profits, with net sales of 238.8 billion yen (up 3.8% year on year) and operating
profit of 23.4 billion yen (up 11.3% year on year). These results were driven mainly by strong performance in
Watches. Ordinary profit and profit attributable to owners of parents also increased to 27.4 billion yen (up 12.4%
year on year) and 20.6 billion yen (up 5.0% year on year), respectively.
WatchesIn the domestic market, sales of Citizen brand watches increased, reflecting the firm performance of the limited
edition of the high-end brand, The Citizen, in addition to core brands such as Attesa and Promaster, and therecovery of inbound tourism-related demand, despite a decline in consumer confidence linked to price increases.
Looking at overseas markets, the North American market showed signs of weakness in sales for distribution
such as jewelry chain stores and department stores amid an increase in budget-minded consumers because therate of price increase still remained high. Even so, sales increased, chiefly reflecting the strong performance of
online sales. The European market suffered price increases. Despite this, sales climbed due to the strong
performance recorded mainly in the UK and Italy, as well as a steady increase in new retailers selling Citizen
watches in France. In the Asian market, sales increased, reflecting a continued upward trend in business mainlyin Singapore attributable to a recovery in the flow of people, as well as a gradual recovery in China although thisrecovery was still limited.
Sales of Bulova brand watches rose. This was attributable to, in the mainstay North American market, thecultivation of new sales channels including sales for tourism-related distribution, offsetting weak sales for main
distribution channels such as jewelry chain stores.
Sales of movements were at the level of the previous year. Sales of mechanical movements were solid, but
sales of analog quartz movements were slow due to concerns about a recession in the North American andEuropean 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 127.2 billion yen (up 8.4% year on year). Operating profit increased 16.9% year on year, to 18.4
billion yen, mainly reflecting the contribution of increased net sales and the ongoing efforts to improve profitability.
Machine Tools
Sales increased in the domestic market due to firm sales in the construction machinery and medical equipment
industries, among other industries, although shipments of automobile-related products were sluggish as a
generally cautious stance on capital expenditures took hold. As for overseas markets, sales primarily of medical
products remained strong in the European and American markets. However, this was offset by the ongoingsluggishness of markets in China and other Asian countries, which resulted in a decrease in sales.
As a result, net sales in the machine tools segment as a whole decreased to 62.1 billion yen (down 1.9% year
on year). Operating profit fell to 7.5 billion yen (down 10.9% year on year) chiefly due to sharp rises in materials
prices.

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Devices and Components
In precision components, sales of automotive parts increased with the easing of shortages of parts supplies
that had been caused by semiconductor shortages, together with a recovery in production at car manufacturers.
Sales of small motors rose, reflecting market recoveries in a broad range of areas including medical products.
However, sales of crystal devices decreased, reflecting sluggish demand growth in demand in the personal
computer and IoT markets. As a result, sales in precision components as a whole were at the same level as theprevious fiscal year.
In opto-devices, sales of chip LEDs decreased, reflecting a decline in sales of LEDs for lighting due to the delayin the recovery of demand for in-vehicle LEDs and slowdowns in the Chinese market and other Asian markets.
As a result, net sales in the devices and components segment as a whole decreased to 32.5 billion yen (down
4.9% year on year), but operating profit increased to 0.4 billion yen (compared with operating loss of 0.1 billion
yen in the same period of the previous year) due to a reduction in fixed cost.
Electronic and Other Products
In information equipment, the recovery of demand was weak due to the deterioration of the market environment
outlook, resulting in the sluggish growth of POS printers and bar code printers. Even so, sales increased,reflecting strong sales of photo printers due to the growth of demand for events. Sales of healthcare equipment
decreased given ongoing weakness in demand for thermometers and sales of blood pressure monitors, which fell
short of sales in the previous year despite a recovery trend.
As a result, the electronic and other products segment overall recorded an increase in sales and an increase inprofit, with net sales of 16.9 billion yen (up 11.3% year on year) and operating profit of 1.3 billion yen (up 33.7%
year on year).

(2) Qualitative data on the consolidated financial position
Total assets at the end of the third quarter of the consolidated fiscal year under review stood at 403.6 billion yen,
an increase of 13.6 billion yen from the end of the previous consolidated fiscal year. Current assets increased 5.9billion yen, mainly reflecting an 11.2 billion yen increase in inventories and a 6.0 billion yen increase in notes andaccounts receivable – trade, offsetting a 10.5 billion yen decrease in cash and deposits. Non-current assets
increased 7.6 billion yen, attributable chiefly to a 2.3 billion yen increase in leased assets, and a 2.0 billion yen
increase in machinery, equipment and vehicles.
Liabilities totaled 160.3 billion yen, an increase of 3.1 billion yen from the end of the previous consolidated fiscal
year, chiefly reflecting a 3.1 billion yen increase in accrued expenses and a 2.2 billion yen increase in income
taxes payable, which was partially offset by a 3.4 billion yen decrease in short-term borrowings.
Net assets increased 10.4 billion yen from the end of the previous consolidated fiscal year, to 243.2 billion yen.
This result chiefly reflected a decrease of 1.4 billion yen in shareholders' equity due to the purchase of treasury
shares and payment of dividends amounting to 12.3 billion yen and 9.8 billion yen, respectively, and an increaseof 8.9 billion yen in the foreign currency translation adjustment, as well as the posting of profit attributable toowners of parent.
Both retained earnings and treasury shares decreased due to the cancellation of treasury shares amounting to39.1 billion yen.

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WATCH(3) Qualitative data on the consolidated earnings forecasts
No changes have been made to the full-year forecasts for the consolidated fiscal results in the fiscal year
ending March 31, 2024 announced on November 13, 2023 in the Consolidated Financial Statements for the Six
Months Ended September 30, 2023.

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2. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheet（ Millions of yen）
As of March 31,
2023
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
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets

8

As of December 31,
2023

82,49053,7182,081
58,60424,291
25,595
3,052
10,907(1,099)259,642

71,94959,808
3,091
67,14727,56725,053
2,517
9,704(1,231)
265,60941,80815,868
3,899
10,3675,134
2,443
79,521

42,194
17,894
4,483
10,4857,491
2,474
85,024

3,951
799
4,751

4,458
823
5,282

39,021
163
5,581
1,675
(236)
(138)
46,066130,340
389,982

40,999
171
5,077
1,701
(257)
－
47,692
137,999403,608

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As of March 31,
2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Notes payable - facilities
Electronically recorded obligations - non-operating
Short-term borrowings
Current portion of bonds payable
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
Asset retirement obligations
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

9（ Millions of yen）
As of December 31,
2023

18,88913,32518384
3,787
10,0002,179
10,997
6,156
303
1,244
110
11,91879,317

18,71911,999
20
543
290
－
4,414
14,169
4,302
－
1,333
108
11,584
67,487－51,3283,628
616,572
4,679
247
1,426
77,889157,206

10,00052,3525,364
6
16,951
6,892
247
1,074
92,890160,378

32,64833,740150,483(28,581)
188,290

32,64833,739122,198(1,697)
186,889

10,16125,65967
35,888
8,596
232,775
389,982

13,086
34,609175
47,871
8,469
243,230
403,608

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WATCH(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income for the Nine months ended December 31, 2023

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
Subsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for purchase of treasury shares
Bond issuance costs
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
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

10

Nine months ended
December 31, 2022
230,178
136,117
94,06073,027
21,032（ Millions of yen）
Nine months ended
December 31, 2023
238,894
135,774
103,120
79,703
23,416

544
865
844
189
1,171
374
3,989

998
874
1,018
71
2,008
244
5,216

220
79
－
282
582
24,440

236
586
53
278
1,154
27,478

1,748
725
216
2,689

37
554
13
605

269
15
1,684
25
－
28
2,024
25,105
5,818
19,287(410)
19,697

447
28
2
8
41
13
541
27,541
6,908
20,633(56)
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Consolidated Statement of Comprehensive Income for the Nine months ended December 31, 2023

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

11（ Millions of yen）
Nine months ended Nine months ended
December 31, 2022 December 31, 2023
19,287
20,633
(189)
6,607
(23)
414
6,810
26,097

2,925
8,699
106
392
12,12432,75726,363(265)

32,67384

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WATCH(3) Notes on the Consolidated Financial Statements(Notes related to of going concern assumptions)Not applicable(Notes regarding significant changes in shareholders’ equity accounts)(Acquisition and cancellation of treasury stock)
The Company's treasury shares increased 12,301 million yen in the first six months of the consolidated fiscal
year under review, reflecting the acquisition of 14,875,100 treasury shares, based on a resolution of a Board of
Directors’ meeting held on February 13, 2023. Then, retained earnings and treasury shares decreased 39,166
million yen, respectively, in the first six months of the consolidate fiscal year under review, reflecting thecancellation of 48,000,000 treasury shares implemented on June 30, 2023 based on a resolution of a Board of
Directors' meeting held on June 21, 2023.
As of the end of the third quarter of the consolidated fiscal year under review, retained earnings and treasury
shares stood at 122,198 million yen and 1,697 million yen, respectively.

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WATCH(Segment information)(i) Nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)
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
117,358
63,37634,19915,243
230,178-230,178
Inter-segment
67
91
1,076
457
1,692
(1,692)-Total117,425
63,46835,276
15,700231,870(1,692)
230,178
Segment profit
15,779
8,436
(166)
976
25,025(3,993)
21,032or loss(Notes)1. The 3,993 million yen negative adjustment to segment income (Operating profit) includes 76 million yen ininter-segment eliminations and 4,070 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.
Information on Impairment Losses of Fixed Assets or Goodwill and Other Items by Reported Segment(Significant impairment loss on fixed assets)
In Devices and components, the Company posted an impairment loss on Buildings and structures andMachinery, equipment and vehicles of 1,684 million yen.
(ii) Nine months ended December 31, 2023 (April 1, 2023 to December 31, 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
127,230
62,17732,52016,966
238,894
238,894
Inter-segment
63
165
1,329
489
2,049
(2,049)Total
127,294
62,34233,85017,456240,943(2,049)238,894
Segment profit
18,449
7,518
432
1,305
27,706(4,289)23,416or loss(Notes)1. The 4,289 million yen negative adjustment to segment income (Operating profit) includes 60 million yen ininter-segment eliminations and 4,350 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.
Impairment Loss on Non-current Assets or goodwill by Reportable Segment
Not applicable.

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