Seiko : Consolidated Result for the year ended 31 March 2024 Presentation Slides

FY23 Consolidated Results

(from April 1, 2023 to March 31, 2024)

May 15, 2024

1. Consolidated Results FY23
2. Financial Forecast for FY24
3. Initiatives in the Next 3 years of SMILE 145

1

1. Consolidated Results FY23
2. Financial Forecast for FY24
3. Initiatives in the Next 3 years of SMILE 145

2

Consolidated P/L for FY23

Breakdown of Year-on-Year Change

*Extraordinary income/losses are the amounts recorded for the current period

（Billions of yen）	FY22		FY23			Variance		Net Sales： y/y	+16.3
Actual		Actual
			Amt.	%		（Exchange rate fluctuations	c. +9.2)
										Operating Profit： y/y	+3.5
Net Sales		260.5	276.8				+6.3%
					（Exchange rate fluctuations	c. +2.9）
										Impact of increase in Net sales	+7.2
Gross Profit		111.7	122.6	+10.8	+9.7%
		Impact of improved GP%	+3.6
%		42.9%	44.3%						Increase in SG&A expenses	-7.3
Operating Profit	11.2	14.7				+31.2%
				Ordinary Profit： y/y	+4.7
%		4.3%	5.3%			+1.0pt			Increase in Operating profit	+3.5
Ordinary Profit	11.1	15.8				+42.3%		Increase in Foreign exchange gains	+0.3
				Other	+0.8
%		4.3%	5.7%			+1.4pt
					Extraordinary Income/Losses:	-0.7
Income before		9.6	15.1	+5.4	+56.9%
		Extraordinary Income	1.5
income taxes
Profit attributable	5.0	10.0				+99.9%		Gain on sale of non-current assets	1.2
to owers of parent					Other	0.3
%		1.9%	3.6%			+1.7pt			Extraordinary Losses	2.3
Exchange Rates USD	135.5	144.7	+9.2	+6.8%
	Business restructuring expenses	1.0
(JPY)	EUR	141.0	156.8	+15.8	+11.2%		Impairment losses	0.8
										Information security expenses	0.4

3

Analyses of Changes in Operating Profit for FY23

■ Profit rose 10.8 billion yen due to increased net sales and an improved GP ratio. SG&A Expenses rose 7.3 billion yen. As a result, operating profit increased by 3.5 billion yen.

（Billions of yen）

Impact of

increase

in Net sales

FY22

Operating

Profit

Impact of
improved GP%	Increase in	Increase in
etc.	labor expenses
		advertising	Increase in
		Expenses	other

SG&A expenses FY23

Operating

Profit

Exchange rate

fluctuations

c. - 2.2

Exchange rate

fluctuations

c. + 2.9

4

Net Sales & Operating Profit by Segment for FY23

			Net Sales		Operating Profit
		(Composition ratio)
（Billions of yen）
FY22	FY23		FY22	FY23
		Variance	Variance
		Actual	Actual	Actual	Actual
	Watches	144.2	160.0		11.1	15.6
Emotional	(55%)	(58%)
Value	Others/adj.	26.5	28.2	+1.7	0.4	1.6	+1.1
Solutions	(10%)	(10%)
	Sub Total	170.7	188.3		11.5	17.2
Devices Solutions	64.5	58.3		5.0	2.1
(25%)	(21%)
Systems Solutions	36.6	40.4		4.3	4.7
(14%)	(15%)
Sub Total	271.9	287.2	+15.2	21.0	24.0	+3.0
Others		1.1	1.2	+0.0	0.1	0.2	+0.0
	(0%)	(0%)
Cons. adj.		-12.5	-11.6	+0.9	-9.9	-9.5	+0.3
	(-5%)	(-4%)
Cons. Total		260.5	276.8	+16.3	11.2	14.7	+3.5
5

Watches Business: Significant increases in both net sales and operating profit

EVS: Significant increases in both net sales and operating profit

DS: Decreases in both net sales and operating profit

SS: Steady growth

EVS Domain

• Achieved increases in net sales and operating profit due to significant net sales growth in the Watches
  Business and WAKO Business for the domestic market

	4Q (Jan. - Mar.)	(Billions of yen)		Full Year (Apr. - Mar.)	(Billions of yen)
Net Sales
															188.3
Operating Profit													170.7
							45.7				150.8
40.2	41.2
													17.2
								1.2
	2.1
															11.5
					0.5
													8.2
0											0	0										0
		FY21		FY22		FY23			FY21		FY22		FY23

OP Margin

5.4%

1.4%

2.8%

5.5%

6.8%

9.2%

6

Watches Business

Completed	■ In Japan, net sales grew significantly year on year against the background of a recovery in
Watches	personal consumption and demand from inbound tourists.
■ Overseas, net sales increased year on year as Seiko Presage and Seiko 5 Sports, etc. grew.
Movements	■ In the watch movements business, net sales remained roughly the same as those of the
	previous year, despite the impact of the sluggish Chinese economy.

	4Q (Jan. - Mar.)				(Billions of yen)		Full Year (Apr. - Mar.)	(Billions of yen)
Net Sales
															160.0
Operating Profit													144.2
								125.7
							37.8
33.3	33.9							15.6
																	11.1
		1.7						0.7
												7.6
				0.3
0											0	0
											FY21		FY22		FY23
		FY21		FY22		FY23

OP Margin

5.3%

1.2%

1.9%

6.1%

7.7%

9.8%

0

7

Watches Business Completed Watches Net Sales Growth by Region

＋25% ＋15% ＋5% -5%-15%-25%

＋20%

＋10%

0

-10%

8

	4Q(Jan. - Mar.)			FY23 vs FY22
	※Local currency basis

Japan	Americas	Europe	Asia &
			Others

Full Year(Apr. - Mar.)

Japan	Americas	Europe	Asia &
			Others

Status of sales by overseas region

■ Americas

GS sales were sluggish due to a stagnating high-end market.

■ Europe

As in North America, GS sales were sluggish. However, Seiko GB performed favorably, resulting in an overall year-on-year increase.

■ Asia and Others

Net sales continued to increase in Australia, India and the Middle East, etc. Continued transformation of business model in the sluggish Chinese market.

Watches Business GS & GB Net Sales

GS & GB Net Sales Growth

■ Net sales for both GB and GSrose significantly in Japan for the full year. Overseas, GSnet sales declined from the previous year on a local currency basis.

Ratio of GB to Net Sales

■ In Japan, the ratio of GBto net sales rose by 5% year on year. Overseas, the ratio was in line with that of the previous year.

＋40%

＋20%

0

-20%

＋40%

＋20%

0

-20%

9

4Q (Jan. - Mar.)			GB		GS
※Local currency basis

JapanOverseas

Full Year (Apr. - Mar.)

JapanOverseas

		FY21		FY22		FY23
Japan c. 60	％ c. 70 ％ c.75	％
Overseas c. 65	％ c. 75 ％ c.75	％

GB （Global Brands）

Grand Seiko (GS)

Seiko Prospex

Seiko Astron

Seiko Presage

King Seiko

Seiko 5 Sports