Citizen Watch Co, Ltd. · TSE:7762
Citizen Watch — H1 2004 Earnings Presentation
25 slides from Citizen Watch's earnings presentation, Nov 17, 2004
Slide 1: Earnings Presentation for the Interim term of FY2004
Earnings Presentation for the Interim term of FY2004 Citizen Watch Co., Ltd. November 17, 2004 The estimates and projection in this presentation are forward-looking statements based on the information available at the time of the announcement. Actual results may differ materially depending on a vari
Slide 2: 1H04 Summary
1H04 Summary 1H03 1H04 YoY % to net % to net (billion yen) Results sales Results sales Change % Net sales 180.8 183.6 +2.7 +1.5% Operating 16.2 9.0% Record high20.3 11.1% +4.1 +25.3% income Ordinary 16.0 8.9% Record high22.9 12.5% +6.8 +42.8% income Net income 8.3 4.6% Record high11.5 6.3% +3.1 +38.
Slide 3: FY04 Forecast
FY04 Forecast FY03 FY04E YoY % to net % to net (billion yen) Results sales Forecast sales Change % Net sales 375.7 371.0 -4.7 -1.3% Operating 35.5 9.5% Record high41.0 11.1% +5.4 +15.5% income Ordinary 35.3 9.4% Record high43.0 11.6% +7.6 +21.5% Income Net income 19.4 5.2% Record high21.5 5.8% +2.0
Slide 4: Net sales breakdown and group structure
Net sales breakdown Pachinko-related products Eyeglasses Other 371.0 billion yen Jewelry Other 4% 3% FY03 machinery 3% Watches 375.7 billion yen CNC automatic 1% 0% lathes 8% Other 32% 4% 3% Industrial products 3% 0% Other parts machinery 10% 34% 6% 1% 9% 32% 7% Watches 10% and clocks 7% 7% 34% Prin
Slide 5: 2Q04 Results
1. 1H04 Summary, FY04 Forecast 2. 2Q04 Results 3. 2H04 Forecast 4. Industrial Machinery Business 9 Interim FY2004 Earnings Presentation 2004/11/17 2Q04 Results 2Q03 2Q04 YoY % to net % to net (billion yen) Results sales Results sales Change % Net sales 96.9 92.5 -4.3 -4.5% Operating 10.5 10.9% 9.4 1
Slide 6: Quarterly Results; Watches and clocks 2Q04
Quarterly Results (billion yen) 83.9 96.9 104.8 89.9 91.1 92.5 Net sales Other products 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 Industrial machinery Information and electronic equipment Watches and clocks 5.6 10.5 13.5 5.7 10.9 9.4 Operating income 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 11 Interim FY2004 Earnings Pres
Slide 7: Information and electronic equipment; Industrial machinery 2Q04
2Q04 Information and electronic equipment (billion yen) Net sales - ¥4.5B Net sales 60 40.4 46.8 50.9 43.3 46.3 42.2 Opto - ¥3.3B 1.adjustment of cell Other parts 40 phones Printers, 2.in-house production calculators Healthcare 20 of back light units equipment Crystal devices LCD - ¥1.2B LCD 0 Inven
Slide 8: Other products 2Q04; B/S
2Q04 Other products (billion yen) 12 9.6 9.4 10.5 9.2 8.8 9.9 Net sales + ¥0.4B 8 Pachinko-related Net sales products + ¥0.5B Expansion of paper- Other 4 bill conveyance Eyeglasses equipment to Pachinko-related 0 panchinko-slot stores products Jewelry 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 (billion yen) 1 10
Slide 9: 2H04 Forecast
1. 1H04 Summary, FY04 Forecast 2. 2Q04 Results 3. 2H04 Forecast 4. Industrial Machinery Business 17 Interim FY2004 Earnings Presentation 2004/11/17 2H04 Forecast 2H03 2H04E YoY % to net % to net (billion yen) Results sales Forecast sales change % Net sales 194.8 187.3 -7.5 -3.9% Operating 19.2 9.9%
Slide 10: 2H04E Watches and clocks; Information and electronic equipment
2H04E Watches and clocks (billion yen) 80 60.8 66.3 59.0 65.1 60 Net sales - ¥1.2B Net sales 40 exchange rate ¥109 ¥105 20 movement Clocks 0 Watches 1H03 2H03 1H04 2H04E (billion yen) 12 9.1 9.3 8.7 10.2 20% Operating income 9 15% 15.8% + ¥0.8B Operating 15.1% 14.1% 14.7% income 6 10% product mix du
Slide 11: 2H04E Industrial machinery; Other products
2H04E Industrial machinery (billion yen) 20 13.6 14.3 17.1 17.7 15 Net sales + ¥3.4B Net sales strong in automobile 10 and OA 5 growth in DVD/HD Other related for Asian market machinery CNC automatic 0 lathes 1H03 2H03 1H04 2H04E (billion yen) 3 1.3 1.6 2.4 2.5 20% Operating 2 Operating income 14.0%
Slide 12: Capex/Depreciation; R&D
Capex/Depreciation (billion yen) 30 27.4 20 Capex 20.1 19.0 17.2 10 13.3 10.2 0 FY00 FY01 FY02 FY03 FY04E (billion yen) 30 20 23.0 22.0 Depreciation 18.2 16.6 17.5 10 7.8 0 FY00 FY01 FY02 FY03 FY04E 23 Interim FY2004 Earnings Presentation 2004/11/17 R&D (billion yen) 12 4% % to net sales 11.3 10.6 9
Slide 13: Group employees
Group employees 25,000 21,949 19,220 18,703 19,864 20,440 20,000 11,978 15,000 10,973 12,029 12,534 Overseas 10,909 Japan 10,000 5,000 9,971 8,247 7,794 7,835 7,906 0 2001/03 2002/03 2003/03 2004/03 2004/09 25 Interim FY2004 Earnings Presentation 2004/11/17 1. 1H04 Summary, FY04 Forecast 2. 2Q04 Res
Slide 14: Industrial Machinery: Citizen's history
Industrial Machinery Content 1. Citizen’s history 2. Citizen’s domain 3. Citizen’s market and share 4. Market characteristics and Citizen’s strength 5. Future business direction 27 Interim FY2004 Earnings Presentation 2004/11/17 1. Citizen’s history-1 Begins with production of watch parts… In charge
Slide 15: Citizen's history 2 and 3
1. Citizen’s history-2 In 1960s, began to sell some of the machines used in-house. In early 1970s, introduced the world’s first NC automatic lathe. In 1980, introduce a big hit F12. realize high productivity bring new perspective of design to producer goods 29 Interim FY2004 Earnings Presentation 20
Slide 16: Citizen's domain; market and share - applications
2. Citizen’s domain machine tools (Japan) ¥406.3B/1H04 (produced from January to June) machining ¥98.9B lathes center horizontal NC lathes ¥119.9B 1,620 ¥83.0B April to NC automatic lathes September ¥27.1B ¥30.9B Fixed headstock Sliding type automatic headstock type lathes automatic lathes Citizen ¥
Slide 17: Market and share: applications and global share
3. Citizen’s market and share -2 Applications in Japanese market communication 1% automobile automobile pneumatic communic 16% 18% pneumatic ation equipment equipment 2% OA 4% 5% 13% OA 10% 45%growth in units sold in Japan precision/ machinery machinery medical home equipment precision/ equipment 52
Slide 18: Market by region; market characteristics
3. Citizen’s market and share-4 Market by region (local sales) 4000 Other USA Europe Asia Japan Total 3000 units sold 2000 1000 0 90 FY 92 FY 94 FY 96 Total FY 98 Japan Asia FY 00 Europe USA FY 02 Other FY E 04 FY 35 Interim FY2004 Earnings Presentation 2004/11/17 4. Market characteristics and Citiz
Slide 19: Citizen's strength: SCM
4. Market characteristics and Citizen’s strength Citizen’s strength from the viewpoint of product flow Analyze Competitiveness 2 products future needs Realize needs with Market Citizen’s original technology needs Analyze proper needs Modularize each function element Market Competitiveness 1 evaluati
Slide 20: Competitiveness 2 and 3
4. Market characteristics and Citizen’s strength Competitiveness 2 develop machines and lead control manufacturer miniaturization structure of original tool post (=improve processing ability) multi spindle multi line control system (=decline in non-cutting time) High function weight synchronization
Slide 21: Future business direction: units produced
5. Future business direction Strengthen bearing force against global market fluctuations further and expand the business scale CPM CMA CMB units produced 1H 2H 1H 2H 1H 2H 1H 2H 1H 2HE 1HE 2HE 2000 2001 2002 2003 2004 2005E 41 Interim FY2004 Earnings Presentation 2004/11/17 5. Future business direct
Slide 22: Production and sales strategy for China
5. Future business direction Production strategy for China Sales and service strategy for China Thailand as the key base for Cam type automatic lathes becoming CNC strategic products Provide production technology (engineering) Establish base of parts and Train local human resources finished goods Ni
Slide 23: Future business direction: brand power
5. Future business direction Improve brand power (confidence) of industrial machinery, that support Citizen 45 Interim FY2004 Earnings Presentation 2004/11/17
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Slide 25: Interest-bearing debt and financial data tables
Citizen Watch Company, Ltd. 1H04 Eanings Presentation 2004/11/17 FY2003 FY2004 Interim Annual (billion yen) 1Q 2Q 3Q 4Q 1Q 2Q (billion yen) FY2000 FY2001 FY2002 FY2003 FY2004 (billion yen) FY2000 FY2001 FY2002 FY2003 FY2004E Net Sales 83.9 96.9 104.8 89.9 91.1 92.5 Net Sales 175.9 167.1 154.7 180.8