Citizen Watch : FY2025 1Q Consolidated Financial Results

August 13, 2025

Company name: CITIZEN WATCH CO., LTD. Listing: Tokyo Stock Exchange Securities code: 7762

URL: https://www.citizen.co.jp/global Representative: Yoshitaka Oji, President and CEO

Inquiries: Keiichi Kobayashi, Director, In charge of Public & Investor Relations Department Telephone: +81-42-468-4934

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended	Millions of yen 75,282 75,888	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      June 30, 2025		(0.8)	4,699	0.3	6,166	(16.1)	9,186	7.5
      June 30, 2024		4.4	4,684	(15.4)	7,347	(8.2)	8,534	36.0

      Note: Comprehensive income For the three months ended June 30, 2025: ¥3,994 million [(74.3%)]

      For the three months ended June 30, 2024: ¥15,520 million [(20.8%)]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	37.67	-
      June 30, 2024	35.04	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
   As of June 30, 2025 March 31, 2025	Millions of yen 418,966 415,552	Millions of yen 262,538 264,147	% 60.7 61.6	Yen 1,043.55 1,049.41

   Reference: Shareholder's Equity

   As of June 30, 2025: ¥254,488 million As of March 31, 2025: ¥255,918 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	22.50	-	22.50	45.00
   Fiscal year ending March 31, 2026	-
   Fiscal year ending March 31, 2026 (Forecast)		23.50	-	23.50	47.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Projected Consolidated Results for the Year ending March 31, 2026

(Percentages indicate year-on-year changes.)

Note: Revisions to the forecast of cash dividends most recently announced: None

1. Significant changes in the scope of consolidation during the period: None

2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

      As of	shares	As of	shares
      June 30, 2025	246,000,000	March 31, 2025	246,000,000
      June 30, 2025	2,132,075	March 31, 2025	2,131,730
      June 30, 2025	243,868,147	June 30, 2024	243,821,172

4. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

   2. Number of treasury stock at the end of period

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Proper use of earnings forecasts, and other special matters

Statements above relating to financial forecasts are based on information available to the Company and certain assumptions the Company considers reasonable as of the date of the announcement of these statements. Actual results may differ materially from these forecasts, depending on a variety of factors.

Please refer to the attached "Explanation of the Consolidated Earnings Projections and Other Forecasts" on page 6 for assumptions underlying the above forecasts and precautions regarding their use.

• (Attached Documents) Index

1. OVERVIEW OF OPERATING RESULTS AND FINANCIAL POSITION 5

   1. Overview of Operating Results for the Three Months Ended June 30, 2025 5

   2. Overview of Financial Position for the Three Months Ended June 30, 2025 6

   3. Explanation of the Consolidated Earnings Projections and Other Forecasts 6

2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND PRIMARY NOTES 7

   1. Quarterly Consolidated Balance Sheet 7

   2. Quarterly Consolidated Statement of Income and consolidated statement of comprehensive income 9

   3. Notes on Quarterly Consolidated Financial Statements 11

1. Overview of Operating Results and Financial Position

(1) Overview of Operating Results for the Three Months Ended June 30, 2025

During the first three months of the consolidated fiscal year under review, the Japanese economy experienced a moderate recovery in consumer spending despite some stagnation caused by uncertainty due mainly to the higher cost of living and the US tariff policy. Consumer spending in North America remained solid despite rising uncertainty in economic trends. In the European economy, consumer spending lacked strength despite wage growth and an easing of inflationary pressure. Among Asian economies, China showed signs of recovery in response to a decrease in additional tariff rates as a result of the US-China agreement, and some other Asian counties increased last-minute exports to the US. Nonetheless, the recovery in consumer spending remained limited.

In this environment, the consolidated operating results for the first three months of the fiscal year under review included net sales of 75.2 billion yen, a decrease of 0.8% year on year, as the fall in the Devices and Components segment offset the revenue growth achieved by the Machine Tools segment. Operating profit increased to 4.6 billion yen (up 0.3% year on year). Ordinary profit decreased to 6.1 billion yen (down 16.1% year on year) due in part to a decrease of foreign exchange gains but profit attributable to owners of parent increased to 9.1 billion yen (up 7.5% year on year) due in part to a gain on sale of investment securities.

Beginning the first three months of the fiscal year under review, the Group has reorganized its reportable segments into Watches, Machine Tools, and Devices and Components in an effort to optimize its business portfolio and operate appropriate management while focusing on raising profit margin and capital efficiency under the new Medium-term Management Plan. Through this change, major businesses previously included in the Electronic and Other Products segment have been integrated into Devices and Components and other businesses have been included in Watches. No changes have been made to the Machine Tools segment.

The segment information for the first three months of the previous fiscal year has been restated based on the new reportable segments.

Among watch sales in the domestic market for the CITIZEN brands, sales of the high-end models of ATTESA, a men's watch brand, and demand from foreign visitors in Japan fell short of expectations, despite solid sales of xC, a women's watch brand, resulting in a decrease in net sales.

In North America among overseas markets, sales through key distribution channels such as watch specialty stores and department stores remained strong thanks to growth in the sales of global sub-brands such as PROMASTER and ATTESA, while online sales also grew significantly, resulting in revenue growth. While sales in Europe such as the UK and France remained steady, revenue decreased due to slow markets. In Asia, too, revenue declined. While markets in Thailand and India remained strong, China and other markets in Asia experienced continued sluggishness.

Sales of BULOVA, a brand celebrating its 150th anniversary this year, increased in its mainstay market of North America through strong online sales in addition to key distribution channels such as watch specialty stores and department stores.

Sales of movements remained at the level of the previous year as a result of strong sales of mechanical movements despite sluggish sales of analog quartz movements.

As a result, net sales decreased to 41.5 billion yen (down 0.3% year on year) despite efforts to raise brand value and improve high value-added products amid a limited recovery in consumer confidence stemming from future uncertainty. In contrast, operating profit increased to 4.4 billion yen (up 18.5% year on year) chiefly thanks to sales growth in North America.