Consolidated Financial Results
for the Three Months Ended JUNE 30, 2024
(Under Japanese GAAP)
August 13, 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 commence dividend payments:
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 three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(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%%%%
Three months ended
74,040
17.6
5,104
80.8
5,415
45.1
3,492
44.8
June 30, 2024
62,949
1.4
2,823
(9.1)
3,732
(8.0)
2,411
41.2
June 30, 2023
For the three months ended June 30, 2024: \ 7,174 million[(21.4)%]
Note: Comprehensive income
For the three months ended June 30, 2023: \ 9,130 million[33.5%]

Three months ended
June 30, 2024
June 30, 2023
(2) Consolidated financial position
As ofJune 30, 2024
March 31, 2024
Reference: Equity

Basic earnings
per share
Yen
85.66
58.43

Diluted earnings
per share
Yen-

Total assets
Net assets
Millions of yen
Millions of yen
385,819
156,678
376,262
151,334\
As of June 30, 2024:\
As of March 31, 2024:

Equity-to-asset ratio

154,379 million
149,100 million

%
40.0
39.6

2. Cash dividends
Annual dividends per share
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
Fiscal year ending
March 31, 2025

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Yen
-

Yen
37.50

-

45.00

-

Total

Yen

Yen
42.50

Yen
80.00

45.00

90.00

-

(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None
3. Consolidated financial forecast for the fiscal year ending March 31, 2025 (From April 1, 2024 to March 31, 2025)( Percentages indicate year-on-year changes.)
Profit attributable to
Basic earnings
Operating profit
Ordinary profit
Net sales
owners of parent
per share
Millions of yen% Millions of yen%% Millions of yen% Millions of yen
Fiscal year ending
306,000 10.5
18,000 22.1
18,000 13.2
11,500 14.4
March 31, 2025
Note: Revision to the financial forecast most recently announced: Revised
Refer to (3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2025 (FY2024), 1. Business Results, for detail.

Yen
281.78

* 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 reasons: Applicable: Not applicableiii) Changes in accounting estimates: Not applicableiv) Restatement: Not applicable(Note) Refer to Changes in accounting policies, (3) Notes to Quarterly Consolidated Financial Statements, 2. Quarterly Consolidated Financial
Statements and Major Notes, for detail.
(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 June 30, 2024
As of March 31, 2024ii) Number of treasury shares at the end of period
578,832 shares /639,870 shares
As of June 30, 2024
As of March 31, 2024iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
40,774,468 shares
Three months ended June 30, 2024
41,275,959 shares
Three months ended June 30, 2023
(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, 2025 (FY2024), 1. Business Results, for detail.

SEIKO GROUP CORPORATION

Consolidated Financial Statements: 3M FY2024
Page 3/15

Contents
1.

2.

Business Results(1) Overview ..............................................................................................................
(2) Financial Condition ..............................................................................................
(3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2025
(FY2024) .............................................................................................................
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).........................................................
(Changes in accounting policies) ..........................................................................
(Segment information) ..........................................................................................
(Consolidated Statement of Cash Flows) ..............................................................

4
6
7

8
11
13
13
13
13
14
15

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 3M FY2024
Page 4/15

1. Business Results(1) Overview
During the three-month period ended June 30, 2024, the global economy continued to face a situationof monetary tightening amid persistent high inflation. While the United States economy remainedrobust in terms of employment and consumption, despite concerns about slowdown, the European
economy experienced sluggish recovery due to ongoing price inflation affecting consumer spending.
In China, retail and real estate sectors were gradually recovering, but weakness persisted in certain
areas such as housing investment.
As for the Japanese economy, despite some hesitation in recovery centered around personal
consumption under inflationary conditions, the impact of a weaker yen has contributed to the recovery
of demand from inbound tourists, approaching pre-pandemic levels.
3M FY2022

3M FY2023

3M FY2024

(a)

(b)

①

Net sales

62,07862,949Operating profit

3,105(Millions of yen)
Variance
Variance① - (a)① - (b)74,04011,961

11,090

2,823

5,104

1,999

2,281

5.0％

4.5％

6.9％

1.9pt

2.4pt

4,056

3,732

5,415

1,358

1,683

%

6.5％

5.9％

7.3％

0.8pt

1.4pt

Profit attributable to owners of parent

1,707

2,411

3,492

1,785

1,081

%

2.8％

3.8％

4.7％

1.9pt

0.9pt

USD

129.7

137.5

155.9

26.1

18.4

EUR

138.3

149.6

167.8

29.6

18.3

%
Ordinary profit

Exchange rate (v. JPY)

Amid these circumstances, in the Emotional Value Solutions Business, the Watch Business for theJapanese domestic market and the Wako business have significantly increased sales, driven by demand
from inbound tourists. Additionally, the Watch Business for overseas markets, particularly in Europe,
has surpassed net sales from the same period last year. The Devices Solutions Business has been
gradually recovering from adjustment phases observed around the fourth quarter of the previous fiscal
year, with net sales exceeding those of the same period last year. The Systems Solutions Business has
continued its successful efforts in diversification and expanding stock business, resulting in higher net
sales year on year.
As a result, the Group’s consolidated net sales for the first quarter amounted to 74.0 billion yen (a17.6% increase year on year). Domestic net sales contributed 39.5 billion yen (a 20.4% increase),
while overseas net sales reached 34.5 billion yen (a 14.6% increase), accounting for 46.6% of total net

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 3M FY2024
Page 5/15

sales.
Advertising and promotional expenses for the first quarter increased by approximately 10% year on
year. Selling, general and administrative expenses also rose by 2.9 billion yen year on year. Operating
profit, led by the Emotional Value Solutions business, increased by 2.2 billion yen to 5.1 billion yen(an 80.8% increase) year on year. Non-operating income and expenses deteriorated due to decreases
in foreign exchange gain and share of profit of entities accounted for using equity method.
Consequently, ordinary profit exceeded the same period of the previous fiscal year by 1.6 billion yen,reaching 5.4 billion yen (a 45.1% increase). This led to a 1.0 billion yen increase in profit attributableto owners of parent, reaching 3.4 billion yen (a 44.8% increase).
The average exchange rates for the three-month period ended June 30, 2024 were 155.9 yen per US
dollar and 167.8 yen per euro.
Results by Segment
Results for each segment are as follows:a. Emotional Value Solutions Business (EVS Business)
Net sales of the Emotional Value Solutions (EVS) Business increased by 7.6 billion yen compared tothe same period last year, reaching 49.9 billion yen (an 18.1% increase).
In the domestic market, net sales increased significantly year on year, driven by a thriving luxury
goods market and demand from inbound tourists. Global Brands, such as ‘Grand Seiko’ and ‘Seiko
Prospex’ performed quite well. Overseas net sales also grew, contributed by ‘Seiko Presage.’
Additionally, the external sales of watch movements grew steadily, resulting in increased net sales
year on year.
While the Wako business continued to benefit from robust demand from inbound tourists, the clock
and sports & facility businesses maintained performance levels similar to the same period last year.
Operating profit increased by 2.3 billion yen (a 66.8% increase) year on year, amounting to 5.8 billion
yen.
b. Devices Solutions Business (DS Business)
Net sales of the Devices Solutions (DS) Business increased by 1.1 billion yen year on year, reaching
15.0 billion yen (an 8.1% increase). Operating profit also rose by 300 million yen (a 229.6% increase)year on year, amounting to 500 million yen. The growth in net sales and profit can be attributed to therecovery trend of quartz crystals from the adjustment phase around the fourth quarter of the previous
fiscal year, as well as the increased sales of high-performance metals for semiconductor production
equipment, which had been sluggish until the previous fiscal year.
c. Systems Solutions Business (SS Business)
Net sales of the Systems Solutions (SS) Business increased by 2.1 billion yen year on year, reachingSEIKO GROUP CORPORATION
Consolidated Financial Statements: 3M FY2024
Page 6/15

11.4 billion yen (a 22.9% increase). Operating profit also rose by 84 million yen (a 7.8% increase)year on year, amounting to 1.1 billion yen. This growth can be attributed to the expansion of IoTrelated business and the contribution from an M&A conducted in the fourth quarter of the previous
fiscal year. This trend resulted in continued year-on-year growth in both net sales and operating profit
for 33 consecutive quarters.
(2) Financial Condition-AssetsAt the close of the three-month period ended June 30, 2024, total assets amounted to 385.8 billion yen,representing an increase of 9.5 billion yen compared to the previous fiscal year-end, including theimpact of exchange rates. Within current assets, cash and deposits increased by 3.0 billion yen, andinventories grew by 3.9 billion yen. This resulted in a total current asset of 181.7 billion yen, which is
7.0 billion yen higher than the previous fiscal year-end. In terms of non-current assets, property, plantand equipment increased by 2.4 billion yen, leading to a total non-current assets of 204.0 billion yen,which is 2.5 billion yen higher than the previous fiscal year-end.
-LiabilitiesRegarding liabilities, short-term borrowings increased by 9.7 billion yen, while long-term borrowings
decreased by 5.9 billion yen, resulting in a total borrowing amount of 121.6 billion yen. Althoughaccounts payable - other decreased by 3.8 billion yen, a 3.7 billion yen increase in notes and accounts
payable - trade and other factors led to a total liabilities of 229.1 billion yen, which is 4.2 billion yen
higher than the previous fiscal year-end, including the effect of exchange rates.
-Net assetsThe net assets increased by a total of 5.3 billion yen compared to the previous fiscal year-end, reaching
156.6 billion yen. This growth is attributed to a 1.9 billion yen increase in shareholders’ equity and a
4.2 billion yen increase in foreign currency translation adjustment.

SEIKO GROUP CORPORATION
Consolidated Financial Statements: 3M FY2024
Page 7/15(3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2025 (FY2024)
Based on the positive performance of EVS Business, as well as the steady progress in DS and SS
Businesses during the three-month period ended June 30, 2024, the Company revised its full-year
consolidated financial forecast and the segment-specific forecast as follows. The outlook remains
favorable for the second quarter and beyond.

■Forecast for the consolidated business results for the year ending March 31, 2025 (FY2024)
Profit(Billions of yen)Previous forecast (A)Net sales

Operating

Ordinary

attributable

Earnings

profitprofitto owners ofper share

parent

300.0

17.0

17.0

11.0

269.84 yen

306.0

18.0

18.0

11.5

281.78 yen

Year-on-year change (B-A)

6.0

1.0

1.0

0.5

11.94 yen

Year-on-year change (%)

2.0

5.9

5.9

4.5

4.4

(as of May 14, 2024)
Current forecast (B)(as of Aug. 13, 2024)■Forecasted results by segment for the year ending March 31, 2025 (FY2024)(Billions of yen)

Net Sales

Operating Profit

Current

Previous

Current

Previous

Emotional Value Solutions Business

201.0

196.0

20.0

19.0

Devices Solutions Business

65.0

63.5

3.0

3.0

Systems Solutions Business

50.5

50.5

5.8

5.8

Total for reported segments

316.5

310.0

28.8

27.8

1.0

1.0

0.1

0.1

306.0

300.0

18.0

17.0

OthersConsolidated total

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

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: 3M FY2024
Page 8/15

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

As of March 31,

As of June 30,

2024

2024

AssetsCurrent assets
Cash and deposits

32,68335,73645,49645,294Inventories

84,38288,355

Accounts receivable - other

4,377

3,663

Other

9,173

10,226

Allowance for doubtful accounts(1,419)(1,547)

174,694

181,728

Buildings and structures

82,23084,100Machinery, equipment and vehicles

91,94894,128Tools, furniture and fixtures

42,61744,197

Other

15,60917,863(172,067)(177,286)Land

54,14454,307

Construction in progress

1,553

1,205

116,037

118,516

Goodwill

8,029

7,670

Other

10,15910,668

Total intangible assets

18,18918,339Investment securities

56,37455,222

Deferred tax assets

1,984

2,198

Other

9,131

9,964

Allowance for doubtful accounts

(148)

(150)

Total investments and other assets

67,341

67,234

201,568

204,090376,262

385,819

Notes and accounts receivable - trade, andcontract assets

Total current 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: 3M FY2024
Page 9/15(Millions of yen)

As of March 31,

As of June 30,

2024

2024

Liabilities
Current liabilities
Notes and accounts payable - trade

21,50025,217

Electronically recorded obligations - operating

8,085

7,825

Short-term borrowings

64,35074,145Current portion of long-term borrowings

21,727

19,995

Accounts payable - other

15,291

11,464

Income taxes payable

4,678

2,457

Provision for bonuses

5,097

3,117

Other provisions

1,030

1,000

647

548

Other

23,05026,688

Total current liabilities

165,460

172,460

Long-term borrowings

31,674

27,463

Deferred tax liabilities

6,912

6,653

Deferred tax liabilities for land revaluation

3,614

3,614

732

746

Retirement benefit liability

6,135

6,143

Asset retirement obligations

494

503

Other

9,903

11,554

Total non-current liabilities

59,46756,680224,927

229,140

Asset retirement obligations

Non-current liabilities

Other provisions

Total liabilities

SEIKO GROUP CORPORATION

Consolidated Financial Statements: 3M FY2024
Page 10/15(Millions of yen)

As of March 31,

As of June 30,

2024

2024

Net assets
Shareholders' equity
Share capital

10,00010,000Capital surplus

7,245

7,256

Retained earnings

88,46590,201

Treasury shares(1,584)(1,430)Total shareholders' equity

104,126

106,027

17,82016,803(74)(70)

Revaluation reserve for land

8,190

8,190

Foreign currency translation adjustment

18,29022,494Remeasurements of defined benefit plans

746

935

44,97448,352

2,234

2,298

151,334

156,678

376,262

385,819

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: 3M FY2024
Page 11/15(2) Quarterly Consolidated Statements of Income and Comprehensive Incomea. Quarterly Consolidated Statements of Income (For the three months)(Millions of yen)

3M FY2023

3M FY2024

Net sales

62,94974,040

Cost of sales

35,442

41,340Gross profit

27,50632,699Selling, general and administrative expenses

24,682

27,594

Operating profit

2,823

5,104

Interest income

93

112

Dividend income

507

458

Foreign exchange gains

458

243

Other

553

172

1,613

987

Interest expenses

320

343

Other

384

334

Total non-operating expenses

705

677

Ordinary profit

3,732

5,415

Profit before income taxes

3,732

5,415

Income taxes

1,130

1,690

Profit

2,601

3,724

190

231

2,411

3,492

Non-operating income

Total non-operating income
Non-operating expenses

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

SEIKO GROUP CORPORATION

Consolidated Financial Statements: 3M FY2024
Page 12/15

b. Quarterly Consolidated Statements of Comprehensive Income (For the three months)(Millions of yen)

3M FY2023
Profit3M FY2024

2,601

3,724

Valuation difference on available-for-sale securities

3,010(1,158)Deferred gains or losses on hedges

(235)

3

Foreign currency translation adjustment

4,323

4,089

(95)

178

(474)

337

6,528

3,450

9,130

7,174

8,859

6,870

270

303

Other comprehensive income

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 ofparentComprehensive income attributable to noncontrolling interests

SEIKO GROUP CORPORATION

Consolidated Financial Statements: 3M FY2024
Page 13/15(3) Notes to Quarterly Consolidated Financial Statements(Going concern assumption)
Not applicable.
(Significant changes in shareholder's equity)
Not applicable.
(Changes in accounting policies)(Application of “Accounting Standard for Current Income Taxes”)
The “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28,
2022; hereinafter, “Revised Accounting Standard 2022”), etc. has been applied since thebeginning of the first quarter of the fiscal year ending March 31, 2025.
Revisions concerning the categories in which current income taxes should be recorded (taxes onother comprehensive income) are subject to the transitional treatment set forth in the proviso ofparagraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment set forthin the proviso of paragraph 65-2 (2) of the Guidance on Accounting Standard for Tax EffectAccounting (ASBJ Guidance No. 28, October 28, 2022; hereinafter, “Revised Guidance 2022”).
The change in accounting policies had no impact on the quarterly consolidated financial
statements.
With regard to revisions related to changes in the accounting treatment for consolidated financial
statements when gains/losses on sale of shares, etc. in subsidiaries resulting from transactions
between consolidated subsidiaries are deferred for tax purposes, the Company has applied the
Revised Guidance 2022 from the beginning of the first quarter under review. The change inaccounting policies was applied retrospectively to the quarterly and annual consolidated financial
statements for the previous fiscal year. The change had no impact on the quarterly or annual
consolidated financial statements of the previous fiscal year.

SEIKO GROUP CORPORATION

Consolidated Financial Statements: 3M FY2024
Page 14/15(Segment Information)
I. For the three months ended June 30, 2023
Disclosure of sales and profit for each reported segment(Millions of yen)
Reported segments
Others(Note 1)

Grand total

Adjustment(Note 2)

Figures in
consolidated
statements ofincome(Note 3)62,74697

62,843

105

62,949

912

2,818

171

2,990

(2,990)-13,923

9,320

65,564269

65,83462,949

172

1,077

4,737

56

4,794

(2,884)

Emotional
Value
Solutions
Business

Devices
Solutions
Business

Systems
Solutions
Business

Revenues fromexternal customers

41,655

12,683

8,407

Transactions withother segments

665

1,240

Net sales

42,320

Segment profit

3,487

Total

Sales

Notes:

1.

(1,970)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 105 million yen is royalty income at
headquarters, unallocated to operating segments.
(2) Adjustments to segment profit in the amount of -1,970 million yen include -141 million yen in theamortization of goodwill, 72 million yen that mainly consists of the elimination of transactions with othersegments, and -1,900 million yen in company-wide expenses not appropriated to each operating segment.
Company-wide expenses primarily consist of expenses incurred at headquarters, unallocated to operating
segments.
3. Segment profit has been adjusted for alongside operating profit on the quarterly consolidated statements
of income.

2,823

SEIKO GROUP CORPORATION

Consolidated Financial Statements: 3M FY2024
Page 15/15

II. For the three months ended June 30, 2024
Disclosure of sales and profit for each reported segment(Millions of yen)
Reported segments
Others(Note 1)

Grand total

Adjustment(Note 2)

Figures in
consolidated
statements ofincome(Note 3)73,82993

73,923116

74,040

872

2,664

176

2,840

－

15,047

11,45376,493269

76,763(2,840)

569

1,161

7,547

51

7,599

Emotional
Value
Solutions
Business

Devices
Solutions
Business

Systems
Solutions
Business

Total

Revenues fromexternal customers

49,277

13,971

10,580Transactions withother segments

715

1,075

Net sales

49,993

Segment profit

5,816

Sales

Notes:

1.

(2,723)(2,494)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 116 million yen is royalty income at
headquarters, unallocated to operating segments.
(2) Adjustments to segment profit in the amount of -2,494 million yen include -141 million yen in theamortization of goodwill, -126 million yen that mainly consists of the elimination of transactions withother segments, and -2,226 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.

(Consolidated Statement of Cash Flows)
The quarterly consolidated statement of cash flows for the first quarter of the current consolidated
cumulative period has not been prepared. However, the depreciation expenses (including amortization
expenses for intangible fixed assets excluding goodwill) and the amortization amount for goodwill forthe first quarter of the current consolidated cumulative period are as follows.
(Millions of yen)

3M FY2023

3M FY2024

Depreciation expense

3,095

3,711

Amortization of goodwill

299

359

***

74,0405,104