Seiko : Consolidated Result for the fiscal 2024 first quarter Presentation Slides

Consolidated Results for the 3 months FY24

(from April 1 to June 30, 2024)

August 14, 2024

1. Summary
2. Consolidated Results
3. Financial Forecast for FY24

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1. Summary
2. Consolidated Results
3. Financial Forecast for FY24

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Summary

Actual results for 3M FY24 (Apr. - Jun. 2024)

Net Sales 74.0 billion yen (+17.6% yoy) Operating Profit 5.1 billion yen (+80.8% yoy)

• The EVS domain experienced a significant increase in both net sales and profit yoy, while the DS and SS domains maintained steady performance.
• All three domains achieved increased revenue and profit.

Financial Forecast for FY24

Net Sales 306.0 billion yen	Operating Profit 18.0 billion yen
(Compared to the previous forecast	+6.0 billion yen)	(Compared to the previous forecast	+1.0 billion yen)

• Upward revision due to continued favorable performance expected from the second quarter and onwards.

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1. Summary
2. Consolidated Results
3. Financial Forecast for FY24

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Consolidated P/L for 3M FY24 (Apr. - Jun. 2024)

（Billions of yen）		FY23
	3M
Net Sales		62.9
Gross Profit		27.5
%		43.7%
Operating Profit	2.8
%		4.5%
Ordinary Profit		3.7
%		5.9%
Income before		3.7
income taxes
Profit attributable	2.4
to owers of parent
%		3.8%
Exchange Rates USD	137.5
(JPY)	EUR	149.6

FY24		Variance
3M		Amt.	%
74.0	+11.0	+17.6%
32.6	+5.1	+18.9%
44.2%		+0.5pt
5.1	+2.2	+80.8%
6.9%		+2.4pt
5.4	+1.6	+45.1%
7.3%		+1.4pt
5.4	+1.6	+45.1%
3.4	+1.0	+44.8%
4.7%		+0.9pt
155.9	+18.4	+13.4%
167.8	+18.2	+12.2%

Breakdown of Year-on-Year Change

	Net Sales: y/y	＋11.0
	（Exchange rate fluctuations	c ＋3.8)

Operating Profit : y/y	＋2.2
（Exchange rate fluctuations	c ＋1.2）
Impact of increase in Net sales	+ 4.8
Impact of improved GP%	+ 0.2
Increase in SG&A expenses	- 2.9

Ordinary Profit : y/y	＋1.6
Increase in Operating profit	＋2.2
Decrease in equity method investment profit	- 0.3
Others	- 0.2

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Analysis of Changes in Operating Profit for 3M FY24

■ Operating profit increased by 2.2 billion yen mainly due to an increase in net sales, despite an increase in SG&A.

（Billions of yen）

Impact of	Impact of	Increase in
increase
improved GP%
labor expenses
in Net sales
	＋0.2

3M FY23

Operating

Profit

Exchange rate

fluctuations

c ＋1.2

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Increase in

advertising

expenses Increase in other SG&A expenses

3M FY24

Operating

Profit

Exchange rate

fluctuations

c -1.0

Net Sales & Operating Profit by Segment for 3M FY24

			Net Sales
（Billions of yen）	(Composition ratio)
FY23		FY24	Variance
	3M		3M

		Watches	36.5	44.2	+7.6
		(58%)		(60%)
	Emotional
			5.7
	Value	Others/adj.	5.7	+0.0
	Solutions	(9%)	(8%)
		Sub Total	42.3		49.9		+7.6
	Devices Solutions	13.9	15.0	+1.1
	(22%)		(20%)
	Systems Solutions	9.3	11.4	+2.1
	(15%)		(15%)
	Sub Total	65.5	76.4	+10.9
	Others		0.2	0.2	+0.0
		(0%)	(0%)
	Cons. adj.		-2.8	-2.7	+0.1
		(-5%)	(-4%)
	Cons. Total		62.9	74.0		+11.0

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Operating Profit

FY23			FY24		Variance
3M			3M
3.5	5.7	+2.2
-0.0	0.0	+0.0
3.4		5.8		+2.3
0.1	0.5	+0.3
1.0	1.1	+0.0
4.7	7.5	+2.8
0.0	0.0	-0.0
-1.9	-2.4	-0.5
2.8	5.1		+2.2

EVS Domain

■ Achieved increases in both net sales and operating profit due to significant net sales growth in the Watches

Business and WAKO Business for the domestic market

＜Net Sales＞	(Billions of yen)	＜Operating Profit＞	(Billions of yen)
			20.0

＜OP Margin＞

				188.3				201.0						17.2
			170.7
4Q				45.7												1.2
41.2
											151.0	2Q-4Q forecast	11.5	6.4			14.1
				52.5
										4Q
3Q	46.3								0.5
															3Q	4.0
2Q	44.1	47.6										6.0
1Q												2Q	4.5				5.8
39.0	42.3				49.9
											3.4
										1Q	2.4
			FY2022				FY2023	FY2024					FY2022			FY2023			FY2024

2Q-4Q forecast

	1Q	2Q	3Q	4Q	Total
FY24	11.6%
FY23	8.2%	12.7%	12.2%	2.8%	9.2%
FY22	6.2%	10.3%	8.7%	1.4%	6.8%

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Watches Business

Completed	■ In Japan, net sales increased significantly yoy, driven by a thriving luxury goods market and
demand from inbound tourists. Global Brands performed quite well.
Watches
■ Overseas net sales grew, contributed by 'Seiko Presage', resulting in increased net sales yoy.

Movements ■ The external sales of watch movements grew steadily, resulting in increased net sales yoy.

	＜Net Sales＞		(Billions of yen)			＜ Operating Profit ＞	(Billions of yen)			＜ OP Margin ＞
							172.0													18.0
																									1Q		2Q	3Q	4Q	Total
						160.0												15.6
		144.2																								FY24	13.0%
																														FY23		9.6%		14.4%	12.4%	1.9%	9.8%
					37.8															0.7
		33.9																												FY22	7.9%	12.1%	9.0%	1.2%	7.7%
	4Q								127.7							11.1	5.5					12.2
										2Q-4Q forecast		0.3										2Q-4Q forecast
	3Q	38.4				44.4				4Q
														3Q	3.4
	2Q	37.8				41.1												5.9
												2Q	4.5
																				5.7
	1Q	33.9				36.5	44.2	3.5
								1Q	2.6
		FY2022	FY2023				FY2024							FY2022				FY2023				FY2024

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