Citizen Watch : FY2022 Presentation with script

Earning Presentation

for the Year ended March 31, 2022

May 12, 2023

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Financial Results for FY 2022

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My name is Toshiyuki Furukawa, in charge of the Public & Investor Relations Department.

I will provide an explanation on the financial results for fiscal 2022.

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Financial Results for FY 2022

	FY2021	FY2022
	1-4Q	1-4Q	YoY Change
	(Apr-Mar)	(Apr-Mar)
（Unit︓billion yen)	Result	Result	Amount	％
Net sales	281.4	301.3	+ 19.9	＋ 7.1%
Operating profit	22.2	23.7	+ 1.4	＋ 6.4%
Operating margin	7.9%	7.9%	-	-
Ordinary Profit	27.3	29.0	+ 1.7	＋ 6.4%
Profit attributable to	22.1	21.8	( 0.3 )	( 1.4% )
owners of parent
Exchange rate	¥112/USD	¥135/USD
¥130/EUR	¥141/EUR

 Sales and profit increased, reflecting sales growth in the mainstay Watches and

Machine Tools segment

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This is our statement of income for the full year.

Net sales increased 7.1% year on year to JPY 301.3 billion. Operating profit rose 6.4% year on year to JPY 23.7 billion, with an operating margin of 7.9%.

Solid performance was achieved in the mainstay Watches business and Machine Tools business, resulting in increased sales and profit.

Ordinary profit totaled JPY 29 billion, while profit attributable to owners of parent amounted to JPY 21.8 billion.

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Financial results by Business Segments

					FY2021	FY2022
			Net sales	1-4Q(Apr-Mar)	1-4Q(Apr-Mar)	YoY Change
			(Unit︓billion yen)	Result	Result	Amount	％
			Watches	131.0	150.0	+ 18.9	＋ 14.4%
			Machine Tools	81.0	86.1	+ 5.1	＋ 6.4%
			Devices and Components	50.0	44.7	( 5.3 )	( 10.6% )
			Electronic and Other Products	19.2	20.4	+ 1.1	＋ 6.0%
			合計	281.4	301.3	+ 19.9	＋ 7.1%
			Operating Profit
			(Unit: billion yen, %:operating margin)
			Watches	10.3	16.6	+ 6.3	＋ 61.4%
			7.9%	11.1%
			Machine Tools	12.5	12.2	( 0.3 )	( 3.1% )
			15.5%	14.2%
			Devices and Components	2.8	( 0.8 )	( 3.6 )	-
			5.7%	( 1.8% )
			Electronic and Other Products	1.1	1.1	( 0.0 )	( 2.4% )
			6.1%	5.6%
			Eliminations or general corporate	( 4.6 )	( 5.4 )	( 0.7 )	-
			Consolidated Total	22.2	23.7	+ 1.4	＋ 6.4%
			7.9%	7.9%
	Watches: Sales of finished products continued to increase, mainly in the North American and European market.
	Machine Tools: Sales increased, reflecting progress in production and shipment due to improvements in the parts
	procurement environment.				4

We are now looking at financial results by segment.

Brisk sales continued in the Watches business, mainly in European and American markets. Net sales improved 14.4% year on year to JPY 150 billion, with operating profit recording a 61.4% rise to JPY 16.6 billion on an operating margin of 11%.

In the Machine Tools business, net sales improved 6.4% year on year to JPY 86.1 billion, reflecting progress in production and shipments from gradual improvements in the second half of the year despite the impact of parts procurement difficulties earlier on. Operating profit stood at JPY 12.2 billion, a slight year-on-year decline that was impacted by rising component and material costs among other factors.

Devices and Components recorded a decline in sales and profit. Electronic and Other Products posted an increase in net sales, but the segment's operating profit remained on par with the previous year.

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Financial Results for 4Q(Jan.-Mar.) of FY 2022

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Next, I will describe the financial results for the fourth quarter.

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