INTEGRATED REPORT
CITIZEN REPORT
2023
Corporate Philosophy
Loved by citizens, working for citizens.
CITIZEN's corporate philosophy, "Loved by citizens, working for citizens" is
to deeply contribute to the lives of people around the world through the manufacturing of products that are loved and trusted by citizens.
CITIZEN CALIBRE 16
The first pocket watch completed using a proprietary design in 1924, It was named"CITIZEN"by the mayor of Tokyo at the time in the hope that it would be widely loved by citizens for a long time.
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CITIZEN Forest was created under the concept of being able to work both indoors and outdoors. At Tokyo Works, we planted 215 trees and created a space that is richly endowed with nature, attracting local birds and insects. This space won a 2021 Good Design Award.
Table of Contents
03 Value Creation Story
05 History of the CITIZEN Group
07 Message from
the President & CEO
11 Watches
15 Machine Tools
- Devices and Components
- Electronic and Other Products
- Financial Strategies
23 Financial and Non-financial Highlights
- Identifying Material Issues
- Sustainable Management
- Environment
- Employees
- Customers
- Business Partners
- CITIZEN OF THE YEAR
- Corporate Governance
36 Message from
an Outside Director
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CITIZEN Group's Value Creation Story
MaterialityInputs
Sustainable management
Provide sustainable products | Outcomes | Vision |
Risks and
Opportunities
(Awareness of
the External Environment)
Responding to climate change and contributing to a recycling-oriented society
Contributing to high-quality life
Providing solutions in industry
Increasing job
satisfaction and
cultivating human resources
Fulfilling social responsibility
Financial Capital
Total assets���.�
billion yen Net assets���.� billion yen
Intellectual Capital
Number of patents that the�Group,���holds more than
Number of trademarks that the�Group,���holds more than
Manufactured Capital
Amount of capital investment ��.� billion yen
Production system centered on Japan, China, and Thailand
Social Capital
Global supply chain network
Human Capital
Number of employees ��,���
Natural Capital
Total energy consumption | |
�,���,���GJ | |
Water intake | �,���,���㎥ |
Recycling rate | ��% |
(as of March ���� | ) |
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Research and | Design | |||||||||||||||||||||||||||||||||||||
development | Miniaturization | |||||||||||||||||||||||||||||||||||||
Sales and | Automation | CITIZEN's | Precision | Procurement | ||||||||||||||||||||||||||||||||||
after-sales | Technology | Technical | Processing | |||||||||||||||||||||||||||||||||||
services | Capabilities | |||||||||||||||||||||||||||||||||||||
Low Power | ||||||||||||||||||||||||||||||||||||||
Sales | Consumption | Production | ||||||||||||||||||||||||||||||||||||
Logistics | ||||||||||||||||||||||||||||||||||||||
Corporate | Sustainability | |||||||||||||||||||||||||||||||||||||
governance | Risk management | promotion system | ||||||||||||||||||||||||||||||||||||
B | n | |||||||||||||||||||||||||||||||||||||
tio | ||||||||||||||||||||||||||||||||||||||
usiness founda |
Watches | Corporate Philosophy | |||
Loved by citizens, | ||||
working for citizens. | ||||
Give customers | Engage in business | |||
activities that reduce | ||||
excitement and high | environmental impact | Improve each other | ||
satisfaction | ||||
Machine tools | Solve customers' | through business | ||
problems and | activities | |||
contribute | Achieve sustainable | |||
to business success | Environment | growth | ||
Customers | Reliability | Business | CITIZEN Group | |
Partners | long-term vision | |||
Devices and components | Emotion Security | Crafting a | ||
new tomorrow | ||||
Employees | Community | |||
Provide growth | Solve social issues | |||
opportunities | Shareholders | Create jobs and | ||
Realize job satisfaction | increase development | |||
and employee | and Investors | in communities | ||
friendliness | Improve shareholder | |||
Electronic and other products | value |
3 | 4 |
History of the CITIZEN Group
1910 | 1920 | 1930 | 1940 | 1950 | 1960 | 1980 | 1990 | 2000 | 2010 | 2020 |
Watches
Top class share in the U.S. middle-range market
A global leader in movement sales
1918
Shokosha Watch Research Institute, the predecessor of Citizen Watch Co., Ltd.,was established
1924
First pocket watch
1931
[CITIZEN F],
CITIZEN's first wristwatch
1956
The first shock-resistant watch movement made in Japan [Parashock]
1970
The world's first titanium wristwatch
[X-� Cosmotron Chronometer]
1993
The world's first multi-bandradio-controlled watch
[Cal. ����]
2011
The world's first watch capable of receiving satellite signals [Eco-Drive Satellite Wave]
2021
Mechanical models featuring a completely new mechanical movement
[The CITIZEN]
Machine Tools
A leading world share
for small and midsized CNC automatic lathes
1952
First domestically produced watch with calendar [Calendar]
1959
The first fully waterproof watch made in Japan [Parawater]
1976
The world's first solar- powered analog watch [Crystron Solar Cell]
2008
Acquisition of
Bulova Corporation shares
2012
Acquisition of
Prothor Holding SA shares
2016
The world's thinnest
light-powered watch with a movement just � mm thick [Eco-Drive One]
Acquisition of
Frederique Constant shares
1936
Internalized manufacturing of precision machinery for watch production [AL-�]
1961
External sales of machine tools commenced
1986
Sliding headstock type NC automatic lathe long-selling model [L��]
2011
Citizen Machinery Co., Ltd., and Miyano Machinery Inc. merged
2013
Multi-station machining cell [MC��]
LFV Technology
2018
Friction bonding technology
Electronic and | Units | |
Other Products | (Billions of yen) | |
20.4 | ||
Devices and | 7% | |
Components | 15% | |
44.7 | ||
FY2022 |
Devices and Components
1990
Manufacturing of automotive parts commenced
2011
Highly efficient LED for lighting
[COB Series]
2013
Compact linear motor galvanoscanner [GVM Series]
Sales | 50% | Watches |
301.3 | 150.0 |
28%
Machine Tools 86.1
Other | Units |
3.2 | (Billions of yen) |
Europe | Japan |
62.2 | |
76.5 |
Application of precision processing technologies developed in the assembly of watch parts
1976
Production of crystal units and crystal oscillators commenced
1983
Mass production of the world's first surface-mounted chip LEDs commenced
21% | 25% | |
FY2022 | ||
Overseas | ||
sales ratio | ||
75% | ||
U.S. | 27% | 26% Asia |
80.4 | 78.8 |
Electronic
and Other Products
Application of small precision technology
1964 | 1983 | 1997 | 2007 | 2017 | ||||
Expansion into the office | IC sensor electronic thermometer | Household-use | Digital thermal ink‐transfer | Thermal printer [CT-S���] | ||||
equipment field | [CT-��] featuring the world's first IC sensor | ultrasonic bath | photo printer for businesses | Achieves the industry's smallest height and width | ||||
[SW����] | [CX Series] | |||||||
CITIZEN, Eco-Drive, LFV, and CITIZEN OF THE YEAR are registered trademarks of Citizen Watch Co., Ltd.
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Message Message from the President & CEO
Crafting a new tomorrow
We aim to continue creating new value and never stop taking on new challenge as we work to embody our corporate philosophy:"loved by citizens, working for citizens."
Citizen Watch Co., Ltd.
President & CEO
Toshihiko Sato
Review of FY2022
FY2022 was the first year of our Medium-term Management Plan 2024. It was a year in which we implemented several measures based on our long-term Group vision of"Crafting a new tomorrow."As a result of these measures, our core Watches and Machine Tools businesses - in particular - remained resilient, performing beyond our plans and enabling us to strengthen the profit structure of each busi- ness. While risk factors such as soaring raw material prices and other cost increases re- main, the key over the next two years will be how quickly and reliably we can implement various measures.
In 2023, although some uncertainty remains, as exemplified by growing tensions over the ongoing conflict in Ukraine and the failure of U.S. banks, the once raging COVID-19 pandemic is finally nearing its end, and the movement toward reopening has begun to accelerate globally. Over the past year, we have been in a strongly defensive position, but looking ahead we will turn to the offensive as we aim for sustainable growth.
Sustainable Management to Realize Our Long-Term Vision
Since FY2019, the CITIZEN Group has been working to resolve social issues through its business activities under the banner of"sus-
tainable management."For the Citizen Group, sustainable management means not only providing good products and service but also expanding our business operations while earning the trust of stakeholders and working to sustainably increase corporate value - through management paying due care and consideration to social issues such as human rights and the global environment throughout our entire value chain.
In light of changes in the medium-to long- term business environment, the CITIZEN Group is leveraging its strengths and capital to address material issues (key issues for sustainable improvement of corporate value) in terms of both business activities and business foundation, and engaging in initiatives for growth.
Responding to Climate Change through Our Material Issues
In formulating our long-term Group vision, we have identified a set of material issues: key issues that the CITIZEN Group should address as priorities in the medium to long term. In particular, we have prioritized responding to climate change as the most important material issue for the CITIZEN Group. Strengthening efforts to combat climate change-such as the occurrence of abnormal weather conditions around the globe - has also become a pressing issue for companies.
The CITIZEN Group is working steadily toward achieving carbon neutrality by 2050, including facilitating the use of electricity derived from renewable energy sources and energy-saving activities, and aiming for net-zero effective greenhouse gas emissions from our factories and offices by 2050.
For example, the Group is gradually introducing solar power generation equipment at its manufacturing sites, both in Japan and overseas, and has switched to effectively CO2-free electric power derived from renewable energy for its domestic Citizen Watch sales offices. We will continue working actively to respond to climate change, such as by switching to renewable energy for locations throughout the Group, including overseas bases.
By FY2030, we will achieve our CO2 emission reduction targets for Scope 1 and 2 by 50.4% compared with FY2018, and Scope 3 (supply chain emissions) for Category 1 (CO2 emissions emitted in the course of activities up to and including the manufacture of purchased products and services) and Category 11 (use of products by consumers) by 30% compared with FY2018. The CITIZEN Group Environmental Targets 2030 (greenhouse gas emission reduction targets to be achieved by) have been recognized as having a scientific basis to achieve the targets of the Paris Agreement and have obtained SBT Initia- tive*1 certification.
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Citizen Watch Co. Ltd. published this content on 18 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2023 02:01:12 UTC.