Consolidated Financial Results
for the Nine Months Ended DECEMBER 31, 2023
(Under Japanese GAAP)
February 14, 2024
Company name:
SEIKO GROUP CORPORATION
Listing: Tokyo
Securities code:
8050
URL: https://www.seiko.co.jp/en/
Representative:
Shuji Takahashi, President
Inquiries:
Masanobu Minami, General Manager, Accounting Department
Telephone: +81-3-3563-2111
Scheduled date to file quarterly securities report:
February 14, 2024 (in Japanese)
Preparation of supplementary material on quarterly financial results:
Available
Holding of quarterly financial results briefing:
Scheduled (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)(Percentages indicate year-on-year changes.)(1) Consolidated operating results (cumulative)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen
Millions of yen
Millions of yen%%%%
Nine months ended
205,672
4.2
14,143
13.6
15,321
20.5
10,643
31.3
December 31, 2023
197,459
13.6
12,446
91.7
12,716
76.7
8,104
107.3
December 31, 2022
[22.3%]
Note: Comprehensive income For the nine months ended December 31, 2023: \ 16,781 million
For the nine months ended December 31, 2022: \ 13,724 million[72.4%]

Nine months ended
December 31, 2023
December 31, 2022

Basic earnings
per shareYen
257.96
196.43

Diluted earnings
per shareYen
196.43(2) Consolidated financial position
As ofDecember 31, 2023
March 31, 2023
Reference: Equity

Total assets
Net assets
Millions of yen
Millions of yen
372,982
144,050
355,915
131,748\
As of December 31, 2023:\
As of March 31, 2023:

Equity-to-asset ratio
%
38.0
36.5
141,760 million
129,792 million

2. Cash dividends
Annual dividends per share
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Yen
-

Yen
37.50

-

-

37.50

-

Total

Yen

Yen
37.50

Yen
75.00

42.50

80.00

(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: Revised
Refer to (3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 (FY2023), 1. Business Results, for detail.
3. Consolidated financial forecast for the fiscal year ending March 31, 2024 (From April 1, 2023 to March 31, 2024)( Percentages indicate year-on-year changes.)
Profit attributable to
Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen
Millions of yen%% Millions of yen% Millions of yen%
Yen
Fiscal year ending
275,000
14,000 24.6
14,500 29.8
9,000 79.0
218.78
5.6
March 31, 2024
Note: Revision to the financial forecast most recently announced: Revised
Refer to (3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 (FY2023), 1. Business Results, for detail.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaies resulting in the change
in scope of consolidation): Not applicable
Newly included: Not applicableExcluded: Not applicable(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Not applicable(3) Changes in accounting policies, changes in accounting estimates, and restatementi) Changes in accounting policies due to revisions to acounting standards and other regulationsii) Changes in accounting policies due to other reasonsiii) Changes in accounting estimatesiv) Restatement: Not applicable: Not applicable: Not applicable: Not applicable(4) Number of issued shares (common shares)i) Total number of issued shares at the end of the period (including treasury shares)
41,404,261 shares /41,404,261 shares
As of December 31, 2023
As of March 31, 2023
ii) Number of treasury shares at the end of period
639,550 shares /132,337 shares
As of December 31, 2023
As of March 31, 2023iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
41,261,132 shares
Nine months ended December 31, 2023
41,258,856 shares
Nine months ended December 31, 2022
(Note) For the purpose of calculating the number of treasury shares at the end of period and the average numbers of shares outstanding during theperiod, treasury shares held in the Board Benefit Trust (BBT) are included in the treasury shares deducted in the calculation.
* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Cautionary statements with respect to financial forecast)
The financial forecasts which appear in this report have been prepared based solely on the information which was available to the Company as of thedate on which the report was released and the Company does not in any way guarantee the achievement of the forecasts. Actual results may differ
significantly from the forecasted figures due to a number of factors. For assumptions used in the financial forecasts and instructions to use the financial
forecasts, refer to (3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 (FY2023), 1. Business Results, for detail.

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 3/16

Contents
1.

2.

Business Results(1) Overview ..............................................................................................................
(2) Financial Condition ..............................................................................................
(3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024
(FY2023) .............................................................................................................
Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets ...............................................................
(2) Quarterly Consolidated Statements of Income and Comprehensive Income ......
(3) Notes to Quarterly Consolidated Financial Statements .......................................
(Going concern assumption) .................................................................................
(Significant changes in shareholder's equity).........................................................
(Segment information) ..........................................................................................

4
6
7

9
12
14
14
14
15

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 4/16

1. Business Results(1) Overview
During the nine-month period ended December 31, 2023, despite concerns regarding a potential
slowdown in the U.S. economy due to continuation of monetary tightening caused by continuous highinflation, the U.S. economy continued to perform steadily. However, a slowdown in the European
economy became more apparent. In China, consumer sentiment has declined due to prolonged
adjustments in the real estate market.
In Japan, personal consumption is gradually resuming even amid inflation, and demand from inboundtourists continues to recover.
(Millions of yen)
Variance
Variance

9M FY2021

9M FY2022

9M FY2023

(a)

(b)

①

① - (a)① - (b)173,861

197,459

205,672

31,810

8,213

6,492

12,44614,143

7,650

1,696

3.7％

6.3％

6.9％

3.2pt

0.6pt

7,196

12,71615,321

8,124

2,604

%

4.1％

6.4％

7.4％

3.3pt

1.0pt

Profit attributable to owners of parent

3,910

8,104

10,643

6,733

2,539

%

2.2％

4.1％

5.2％

3.0pt

1.1pt

USD

111.1

136.5

143.3

32.2

6.8

EUR

130.6

140.6

155.3

24.7

14.7

Net sales
Operating profit%
Ordinary profit

Exchange rate (v. JPY)

Amid these circumstances, in the “Emotional Value Solutions Business,” the Watches Business and
WAKO Business for the Japanese market recorded significant net sales growth against the backdrop
of a recovery in personal consumption and demand from inbound tourists. The Watches Business foroverseas markets also grew, mainly in Europe and Asia, and net sales were higher year on year. In the“Devices Solutions Business,” although net sales were significantly lower year on year amid an
ongoing slump in the business environment due to factors such as prolonged stagnation of the Chinese
economy and inventory adjustments in the electronic devices market, there were signs of a recovery
in demand for some products. In the “Systems Solutions Business,” net sales were higher year on year,
thanks to ongoing successful efforts to diversify business and expand the stock business. As a result,for the nine-month period ended December 31, 2023, the Group reported consolidated net sales of
205.6 billion yen, a year-on-year increase of 4.2%.
On an overall consolidated basis, domestic net sales came to 105.9 billion yen (a year-on-year increaseof 8.3%), and overseas net sales were 99.7 billion yen (a year-on-year increase of 0.1%). Net sales in

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 5/16
overseas comprised 48.5% of net sales overall.
Advertising and promotion expenses for the nine-month period ended December 31, 2023 increased
by approximately 7% from the same period of previous fiscal year, resulting in a year-on-year increaseof 4.9 billion yen in selling, general and administrative expenses. Operating profit increased by 1.6
billion yen to 14.1 billion yen (a year-on-year increase of 13.6%), driven by the Emotional Value
Solutions Business. Non-operating profit and loss improved year on year due to factors including
increases in interest income and dividend income, and ordinary profit increased by 2.6 billion yen year
on year to 15.3 billion yen (a year-on-year increase of 20.5%). A gain on sale of investment securities
of 0.2 billion yen was posted as extraordinary income, while business restructuring expenses andinformation security expenses were posted as extraordinary losses totaling 1.0 billion yen. Profit
attributable to owners of parent increased by 2.5 billion yen year on year to 10.6 billion yen (a yearon-year increase of 31.3%), mainly due to a decrease in income taxes - deferred in conjunction with
the improvement of revenue in domestic operating companies.
The average exchange rates for the nine-month period ended December 31, 2023 were 143.3 yen to 1
US dollar and 155.3 yen to 1 euro.

Results by Segment
Results for each segment are as follows:a. Emotional Value Solutions Business (EVS Business)
Net sales under the EVS Business came to 142.5 billion yen, a year-on-year increase of 13.0 billion
yen, or 10.1%.
Net sales of completed watches in Japan grew year on year due to favorable performance of Global
Brands such as Grand Seiko and Seiko Prospex against the background of personal consumption anddemand from inbound tourists, which showed a recovery trend. Overseas, net sales increased year on
year as Global Brands grew in the U.S., Europe, and Asia, especially for Seiko Presage and Seiko 5
Sports, despite a delayed recovery in China. In the watch movements business, net sales decreased
year on year due to the sluggish Chinese economy.
Net sales in the WAKO Business grew significantly year on year against the backdrop of favorable
demand from inbound tourists. However, net sales of the clocks business declined year on year due
primarily to the sluggish Chinese economy, which caused net sales in overseas markets to struggle.
Operating profit increased by 4.9 billion yen year on year, resulting in operating profit of 15.9 billion
yen (a year-on-year increase of 45.3%).

b. Devices Solutions Business (DS Business)
Net sales under the DS Business came to 42.2 billion yen, a year-on-year decrease of 15.5%. Operating
profit was 0.9 billion yen, a year-on-year decrease of 81.9%.
Net sales and operating profit decreased significantly year on year due to the prolonged stagnation of

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 6/16
the Chinese economy and continued inventory adjustments in the electronic devices market, resulting
in weak performance for thermal printers, high-performance metals for semiconductor production
equipment, and precision components. However, there were signs of a recovery in some businesses,
such as silver oxide batteries and quartz crystals.

c. Systems Solutions Business (SS Business)
Net sales under the SS Business came to 28.6 billion yen, a year-on-year increase of 6.2%. Operating
profit was 3.4 billion yen, a year-on-year increase of 8.8%.
There was growth in businesses related to digital contracts, driven by the tide of digitalization. In
addition, businesses supporting digital infrastructure, such as performance management andbusinesses including those related to security, expanded, resulting in continued year-on-year growthboth in net sales and operating profit for 31 consecutive quarters.
(2) Financial Condition-AssetsTotal assets at the close of the nine-month period ended December 31, 2023 amounted to 372.9 billion
yen, an increase of 17.0 billion yen from the close of the previous fiscal year, including the effect of
exchange rates. Total current assets came to 181.1 billion yen, an increase of 7.7 billion yen from theclose of the previous fiscal year. This was due to factors such as an increase of 4.4 billion yen in
inventories. Total non-current assets came to 191.7 billion yen, an increase of 9.2 billion yen from theclose of the previous fiscal year. This was due to increases of 5.0 billion yen in total property, plantand equipment and 4.0 billion yen in total investments and other assets.
-LiabilitiesFor liabilities, total borrowings came to 126.3 billion yen, due to decreases of 1.9 billion yen in shortterm borrowings and 3.7 billion yen in long-term borrowings. In addition, provision for bonuses
decreased by 1.6 billion yen, while notes and accounts payable - trade increased 4.5 billion yen,electronically recorded obligations - operating increased 2.5 billion yen, and income taxes payable
increased 2.2 billion yen. As a result, total liabilities amounted to 228.9 billion yen, an increase of 4.7
billion yen from the close of the previous fiscal year, including the effect of exchange rates.
-Net assetsWith regard to net assets, total net assets increased by 12.3 billion yen over the close of the previous
fiscal year to become 144.0 billion yen, mainly owing to increases of 6.2 billion yen in shareholders’equity and 4.0 billion yen in foreign currency translation adjustment.

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 7/16(3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 (FY2023)
During the nine-month period ended December 31, 2023, both net sales and operating profit increased
significantly year on year in the EVS Business, and despite a year-on-year decline in both net sales
and operating profit in the DS Business, consolidated operating profit rose year on year. Accordingly,
the Company has revised its consolidated financial forecast and its forecasted results by segment as
described below.
■Forecast for the consolidated business results for the year ending March 31, 2024 (FY2023)
Profit(Billions of yen)

Net sales

Operating

Ordinary

attributable

Earnings

profitprofitto owners ofper share

parentPrevious forecast (A)

268.0

12.0

12.0

8.0

193.72 yen

275.0

14.0

14.5

9.0

218.78 yen

Year-on-year change (B-A)

7.0

2.0

2.5

1.0

25.06 yen

Year-on-year change (%)

2.6

16.7

20.8

12.5

12.9

(as of Nov. 14, 2023)
Current forecast (B)(as of Feb. 14, 2024)■Forecasted results by segment for the year ending March 31, 2024 (FY2023)
Net Sales(Billions of yen)

Operating Profit

Current

Previous

Current

Previous

Emotional Value Solutions Business

185.0

180.0

17.0

15.0

Devices Solutions Business

60.0

60.0

2.3

2.3

Systems Solutions Business

41.0

39.0

5.0

5.0

Total for reported segments

286.0

279.0

24.3

22.3

1.0

1.0

0.2

0.1

275.0

268.0

14.0

12.0

OthersConsolidated total

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

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 8/16
The Company’s basic policy for profit allocation is to continue providing stable dividends, while
striving to enhance its equity, and giving consideration to capital efficiency and allocating stableprofits to shareholders.
As announced today, since the consolidated financial forecast for the current fiscal year is expected to
exceed the previous forecast, the Company has revised the year-end dividend forecast for the current
fiscal year to 42.5 yen per share, which is an increase of 5 yen per share compared to the previous
forecast.
Accordingly, the annual dividend for the current fiscal year, including the interim dividend of 37.5
yen, which has already been paid, will be 80 yen per share.
■Dividend forecast
Annual dividends per share
Record date

2nd quarter-end

Fiscal year-end

Total (annual)Previous forecast (as of Nov. 14, 2023)-

37.50 yen

75.0 yen

Current forecast (as of Feb. 14, 2024)-

42.50 yen

80.0 yen

Fiscal year ended March 31,2024

37.50 yen--

Fiscal year ended March 31,2023

37.50 yen

37.50 yen

75.0 yen

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

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 9/16

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

As of March 31,

As of December

2023

31, 2023

AssetsCurrent assets
Cash and deposits

36,32436,65038,64744,765Inventories

83,776

88,219Accounts receivable - other

6,577

3,697

Other

9,381

9,318

Allowance for doubtful accounts(1,297)(1,455)

Total current assets

173,410

181,196

Buildings and structures

79,28081,741

Machinery, equipment and vehicles

86,11790,802Tools, furniture and fixtures

39,23340,809Other

12,69915,432(163,232)(170,208)

Land

54,18254,401

Construction in progress

2,867

3,226

111,149

116,205

Goodwill

6,901

6,003

Other

8,620

9,648

Total intangible assets

15,522

15,651

Investment securities

45,49048,882

Deferred tax assets

1,923

2,125

Other

8,572

9,075

Allowance for doubtful accounts

(153)

(155)

Total investments and other assets

55,83359,928

182,505

191,785355,915

372,982

Notes and accounts receivable - trade, andcontract assets

Non-current assets
Property, plant and equipment

Accumulated depreciation

Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 10/16(Millions of yen)

As of March 31,

As of December

2023

31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

18,79023,371

Electronically recorded obligations - operating

6,212

8,785

Short-term borrowings

72,59870,650300-

Current portion of long-term borrowings

22,11721,985

Accounts payable - other

11,344

11,527

Income taxes payable

1,793

4,077

Provision for bonuses

4,879

3,208

Other provisions

1,452

1,282

9

433

Other

22,65923,690Total current liabilities

162,157

169,011Long-term borrowings

37,52533,737

Deferred tax liabilities

4,285

4,606

Deferred tax liabilities for land revaluation

3,614

3,614

742

767

Retirement benefit liability

6,894

6,701

Asset retirement obligations

1,079

492

Other

7,867

9,999

Total non-current liabilities

62,00959,919224,166

228,931

Current portion of bonds payable

Asset retirement obligations

Non-current liabilities

Other provisions

Total liabilities

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 11/16(Millions of yen)

As of March 31,

As of December

2023

31, 2023

Net assets
Shareholders' equity
Share capital

10,00010,000Capital surplus

7,245

7,245

Retained earnings

81,52089,058Treasury shares(248)(1,583)

Total shareholders' equity

98,517

104,719

11,464

13,356(9)

13

Revaluation reserve for land

8,190

8,190

Foreign currency translation adjustment

10,638

14,678Remeasurements of defined benefit plans

992

801

31,27537,040

1,956

2,290

131,748

144,050

355,915

372,982

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

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

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 12/16(2) Quarterly Consolidated Statements of Income and Comprehensive Incomea. Quarterly Consolidated Statements of Income (For the nine months)(Millions of yen)

9M FY2022

9M FY2023

Net sales

197,459

205,672

Cost of sales

111,422112,988

Gross profit

86,037

92,684

Selling, general and administrative expenses

73,59078,541

Operating profit

12,44614,143

Interest income

134

289

Dividend income

771

961

Share of profit of entities accounted for using

772

792

482

1,186

2,161

3,229

808

1,021

Other

1,082

1,029

Total non-operating expenses

1,891

2,051

12,71615,321Gain on sale of investment securities-

139

Reversal of provision for business restructuring-

106

Total extraordinary income-

245

Business restructuring expenses

136

608

Information security expenses-

395

Loss on the spread of infectious disease90-

Total extraordinary losses

226

1,004

Profit before income taxes

12,49014,562

Income taxes

4,180

3,631

Profit8,309

10,930

205

287

8,104

10,643Non-operating income

equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses

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

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 13/16
b. Quarterly Consolidated Statements of Comprehensive Income (For the nine months)(Millions of yen)

9M FY2022
Profit9M FY2023

8,309

10,930

Valuation difference on available-for-sale securities

780

1,815

Deferred gains or losses on hedges

322

23

Foreign currency translation adjustment

3,188

4,185

Remeasurements of defined benefit plans, net of tax

(20)

(216)

Share of other comprehensive income of entities

1,145

42

5,415

5,850

13,724

16,781

13,50016,408

224

373

Other comprehensive income

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

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 14/16(3) Notes to Quarterly Consolidated Financial Statements(Going concern assumption)
Not applicable.
(Significant changes in shareholder's equity)
Not applicable.

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 15/16(Segment Information)
I. For the nine months ended December 31, 2022
Disclosure of sales and profit (loss) for each reported segment(Millions of yen)
Reported segments
Others(Note 1)

Grand total

Adjustment(Note 2)

Figures in
consolidated
statements ofincome(Note 3)

196,864282

197,146

312

197,459

2,233

9,634

507

10,142(10,142)-

49,977

26,992

206,499790

207,289(9,829)197,459

5,290

3,178

19,469147

19,617(7,170)12,446

Emotional
Value
Solutions
Business

Devices
Solutions
Business

Systems
Solutions
Business

Revenues fromexternal customers

127,259

44,84724,758Transactions withother segments

2,270

5,130

Net sales

129,529

Segment profit

11,000

Total

Sales

Notes:The “Others” category denotes operating segments not included among reported segments, such as the
Shared Services Business.
2. Adjustments are as follows:(1) Adjustment to revenues from external customers in the amount of 312 million yen is royalty income at
headquarters, unallocated to operating segments.
(2) Adjustments to segment profit in the amount of -7,170 million yen include -424 million yen in theamortization of goodwill, -518 million yen that mainly consists of the elimination of transactions withother segments, and -6,227 million yen in company-wide expenses not appropriated to each operating
segment. Company-wide expenses primarily consist of expenses incurred at headquarters, unallocated tooperating segments.
3. Segment profit has been adjusted for alongside operating profit on the quarterly consolidated statements
of income.
1.

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 9M FY2023
Page 16/16
II. For the nine months ended December 31, 2023
Disclosure of sales and profit (loss) for each reported segment(Millions of yen)
Reported segments
Others(Note 1)

Grand total

Adjustment(Note 2)

Figures in
consolidated
statements ofincome(Note 3)205,027295

205,323349

205,672

2,381

8,430

579

9,010

(9,010)-42,22028,665

213,458875

214,333(8,661)

205,672

957

3,458

20,401

175

20,576(6,433)14,143

Emotional
Value
Solutions
Business

Devices
Solutions
Business

Systems
Solutions
Business

Revenues fromexternal customers

140,40938,332

26,284

Transactions withother segments

2,162

3,887

Net sales

142,571

Segment profit

15,984

Total

Sales

Notes:The “Others” category denotes operating segments not included among reported segments, such as the
Shared Services Business.
2. Adjustments are as follows:(1) Adjustment to revenues from external customers in the amount of 349 million yen is royalty income at
headquarters, unallocated to operating segments.
(2) Adjustments to segment profit in the amount of -6,433 million yen include -424 million yen in theamortization of goodwill, -359 million yen that mainly consists of the elimination of transactions withother segments, and -5,649 million yen in company-wide expenses not appropriated to each operating
segment. Company-wide expenses primarily consist of expenses incurred at headquarters, unallocated tooperating segments.
3. Segment profit has been adjusted for alongside operating profit on the quarterly consolidated statements
of income.
1.

***