Citizen Watch : FY2025 3Q Consolidated Business Results

February 12, 2026

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

Scheduled date to commence dividend payments: -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 nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Nine months ended	Millions of yen 257,105 241,709	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      December 31, 2025		6.4	23,886	25.5	30,391	38.2	22,223	0.1
      December 31, 2024		1.2	19,036	(18.7)	21,987	(20.0)	22,207	7.3

      Note: Comprehensive income For the nine months ended December 31, 2025: ¥34,013 million [43.9%]

      For the nine months ended December 31, 2024: ¥23,636 million[(27.8%)]

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      December 31, 2025	91.10	-
      December 31, 2024	91.07	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
   As of	Millions of yen	Millions of yen	%	Yen
   December 31, 2025	456,340	287,890	61.2	1,144.37
   March 31, 2025	415,552	264,147	61.6	1,049.41

   Reference: Shareholder's Equity

   As of December 31, 2025: ¥279,219 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	-	23.50
   Fiscal year ending March 31, 2026 (Forecast)			-	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: Yes

1. Significant changes in the scope of consolidation during the period: Yes Newly included: 1 company (Manufacture Arnold & Son-Angelus SA) Excluded: - companies ( - )

2. Adoption of accounting treatment specific to the preparation of interim 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
      December 31, 2025	246,000,000	March 31, 2025	246,000,000
      December 31, 2025	2,005,430	March 31, 2025	2,131,730
      December 31, 2025	243,948,856	December 31, 2024	243,851,931

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 7 for assumptions underlying the above forecasts and precautions regarding their use.

• Contents of Attachment

1. OVERVIEW OF OPERATING RESULTS AND FINANCIAL POSITION 5

   1. Overview of Operating Results for the Nine Months Ended December 31, 2025 5

   2. Overview of Financial Position for the Nine Months Ended December 31, 2025 6

   3. Explanation of the Consolidated Earnings Projections and Other Forecasts 7

2. CONSOLIDATED FINANCIAL STATEMENTS AND PRIMARY NOTES 8

   1. Quarterly consolidated balance sheet 8

   2. Quarterly consolidated statement of income and consolidated statement of comprehensive income 10

   3. Notes to Quarterly Consolidated Financial Statements 12

(Segment information) 12

(Notes related to of going concern assumption) 13

(Notes regarding significant changes in shareholders' equity accounts) 13

(Notes to Consolidated Statement of Income) 13

(Notes related to statement of cash flows) 14

(1) Overview of Operating Results for the Nine Months Ended December 31, 2025

During the first nine months under review, the Japanese economy was stagnant in some sectors due in part to rising commodity prices, but consumer spending recovered moderately. In the North American economy, consumer spending remained solid despite a worsened employment situation and prices increasing as a reflection of tariff costs. While the European economy was supported by solid income conditions, consumer spending remained weak primarily on the back of a slump in the manufacturing industry as a result of the full-scale impact of the US tariff policy. In the Asian economy, the effect of efforts to stimulate consumption through subsidies and other policies in China decreased, and sluggish conditions also persisted in other Asian countries, mainly in domestic demand. Accordingly, the recovery in consumer spending lacked strength.

Reflecting this environment, in the first nine months of the fiscal year under review, the consolidated operating results remained strong mainly in the Watches and Machine Tools segments. This resulted in net sales of 257.1 billion yen (up 6.4% year on year) and operating profit of 23.8 billion yen (up 25.5% year on year). Ordinary profit increased to 30.3 billion yen (up 38.2% year on year) partly due to increased foreign exchange gains. Profit attributable to owners of parent came to 22.2 billion yen (up 0.1% year on year) due to a gain on sale of investment securities, which was offset by the inclusion of custom duties for prior periods and provision for custom duties for prior periods.

Looking at watch sales in the domestic market for the CITIZEN brands, sales of the high-end models of ATTESA were weak and demand from foreign visitors in Japan decreased, despite solid sales of xC, a women's watch brand, and the premium brand CAMPANOLA. This resulted in a decrease in net sales.

Looking at the overseas markets, in North America, sales through travel distribution channels remained strong in addition to leading distribution channels such as department stores and specialty stores due to the growth in the sales of global sub-brands such as PROMASTER and ATTESA, while sales via in-house ecommerce also grew significantly, mainly for high-end models, resulting in revenue growth. In Europe, the performance of new mechanical watches continued to be solid, and sales of PROMASTER, a global sub-brand, grew, which resulted in revenue growth. In Asia, some markets, including the markets in Thailand and India, remained strong due to the contributions of sales of mechanical watches, and sales in China grew. However, other markets in Asia were weak, resulting in a decline in revenue.

With the success of the marketing strategy involving the 150th anniversary of the BULOVA brand, sales of BULOVA brand watches increased in the mainstay North American market thanks to the significant growth in sales at specialty stores and via in-house e-commerce, as well as strong sales through travel distribution channels, which drove overall performance, in addition to sales at department stores and jewelry retail chains, which are leading distribution channels.

Regarding movements, sales of analog quartz movements remained solid and sales of mechanical movements grew in each market, leading to revenue growth.

As a result, net sales from the overall Watches segment increased to 147.5 billion yen (up 7.3% year on year) thanks to efforts to increase brand value and improve high value-added products despite a limited recovery in consumer confidence stemming from uncertainty about the future. Operating profit increased to 20.7 billion yen (up 29.2% year on year), chiefly due to increases in the ratio of in-house e-commerce and unit selling prices, in addition to growth in net sales in North America.