Citizen Watch : FY2026 1Q Presentation with script

About this update from Citizen Watch Co, Ltd.

Financial Results for the Three months ended June 30, 2026 Presentation CITIZEN WATCH CO., LTD. August 14, 2026 Index Financial Results for Three months ended June 30, 2026 Consolidated Financial Results p 5 Results by Business Segments p 6 Watches p 7 Machine Tools p 12 Devices and Components p 14 The first half and full-year financial forecasts for FY2026 Consolidated Financial Forecast p 16 Forecasts by Business Segments p 17 2 My name is Keiichi Kobayashi, in charge of the Public & Investor Relations Department. I will provide an explanation of the financial results for the first quarter of fiscal 2026. Watches Machine Tools The performance of both finished watches and movements exceeded expectations and remained strong. Operating profit increased significantly. This was chiefly assisted by the higher net sales of finished watches in North America, in addition to an increase in sales in movements. Revenue increased significantly, supported by a recovery in orders and growing semiconductor-related demand. Operating profit increased significantly, mainly due to higher net sales in overseas markets. Forecast previously announced Revised Forecast Change (％) Net Sales 362.0 395.0 +9.1% Operating Profit 34.5 40.5 +17.4% Ordinary Profit 37.5 43.5 +16.0% Profit attributable to owners of parent 27.5 32.0 +16.4% 3 Key Points in the Period under Review 1Q Consolidated Financial Results （Apr.-Jun.） Sales and profit increased FY2026 Consolidated Financial and Dividend Forecasts The first half and full-year financial forecasts were revised. ※ Assumed exchange rate for 2Q 1USD 150 yen ⇒ 155 yen 1EUR 175 yen ⇒ 180 yen The Company will increase annual dividends to 53 yen per share (a 3-yen increase from the previous forecast). Second quarter-end 26.50 yen / Fiscal year-end 26.50 yen These are key points in the latest financial results. Consolidated sales and profit for the first quarter increased. The full-year results forecast has been revised upwards, mainly reflecting better-than-forecast performance in the first quarter and a change in a forecast exchange rate. The annual dividend forecast is 53.0 yen per share, an increase of 3.0 yen from the previous forecast. Financial Results for Three months ended June 30, 2026 4 Now, I will start by outlining the consolidated financial results for the three months ended June 30, 2026. （billions of yen) FY2025 1Q(Apr-Jun) Result FY2026 1Q(Apr-Jun) Result YoY Change Amount ％ Net sales 75.2 98.1 + 22.8 ＋ 30.3% Operating profit 4.6 9.9 + 5.2 +110.9% Operating margin 6.2% 10.1% - - Ordinary Profit 6.1 11.7 + 5.6 ＋ 90.8% Profit attributable to owners of parent 9.1 8.9 ( 0.2 ) ( 2.9% ) Exchange rate ¥146/USD ¥163/EUR ¥160/USD ¥185/EUR 5 Consolidated Financial Results for 1Q of FY2026 1Q (Apr.-Jun.) Sales and profit increased Net sales increased 30.3％ year on year, to 98.1 billion yen, with performance being strong in all three segments: Watches, Machine Tools, and Devices and Components. Operating profit rose an impressive 110.9％ year on year to 9.9 billion yen, mainly reflecting higher net sales in the Watches and Machine Tools segments. The operating margin was 10.1% for the quarter. Ordinary profit increased 90.8％ year on year to 11.7 billion yen, mainly reflecting increases in foreign exchange gains and the share of profit of entities accounted for using the equity method. Profit attributable to owners of parent decreased 2.9% year on year to 8.9 billion yen due to a decrease in gains on sale of investment securities. FY2025 Net sales 1Q(Apr-Jun) (billions of yen) Result FY2026 1Q(Apr-Jun) Result YoY Change Amount ％ Watches 41.5 54.8 + 13.3 ＋ 32.1% Machine Tools 18.9 25.6 + 6.6 ＋ 35.0% Devices and Components 14.7 17.6 + 2.8 ＋ 19.5% Consolidated Total 75.2 Operating Profit (Unit: billion yen, %:operating margin) 98.1 + 22.8 ＋ 30.3% Watches 4.4 10.6% 7.1 13.0% + 2.7 ＋ 62.1% Machine Tools 1.5 8.0% 3.2 12.5% + 1.7 ＋ 112.5% Devices and Components 0.4 2.7% 1.3 7.7% + 0.9 ＋ 235.9% Eliminations or general corporate ( 1.6 ) ( 1.7 ) ( 0.1 ) - Consolidated Total 4.6 6.2% 9.9 10.1% + 5.2 ＋ 110.9% 6 Financial results by Business Segments for 1Q of FY2026 Business Segments ■ Watches Results Sales and profit increased Machine Tools Sales and profit increased Device and Components Sales and profit increased Here are the financial results by business segment. Sales of both finished watches and movements remained strong in the Watches segment. Net sales improved 32.1% year on year to 54.8 billion yen, with operating profit recording a 62.1% rise to 7.1 billion yen on an operating margin of 13%. In the Machine Tools segment, net sales increased 35% year on year to 25.6 billion yen due to the growth of sales in both the Japanese and overseas markets, and operating profit increased a remarkable 112.5% year on year to 3.2 billion yen. In the Devices and Components segment, the performance of photo printers and other products was strong, resulting in the growth of sales and profit. Finished watch (CITIZEN） Finished watch (BULOVA) Revenue in the domestic market increased, supported by strong domestic demand. Revenue in overseas markets increased significantly, driven by sales growth in North America and strong sales in Europe and Asia. Revenue increased significantly in the core North American market, driven by sales of department store and travel distribution channels, along with growth in the sales via in-house e-commerce. Movements Revenue increased significantly, led by strong sales of mechanical movements. 7 Operating Profit (billions of yen) and Margin (%) Net Sales (billions of yen) Watches Operating performance for 1Q of FY2026 1Q (Apr.-Jun.) Sales and profit increased I will now give an overview of the Watches segment. For finished watches of CITIZEN brands, the demand in the Japanese market remained strong, resulting in an increase in sales. Revenue in overseas markets increased, driven by the strong sales growth in North America and high sales in Europe and Asia. Net sales of the BULOVA brand grew in its mainstay North American market, driven by sales at department stores and through travel distribution channels, and an increase in sales via in-house e-commerce. Revenue from movements increased, led by strong sales of mechanical movements. Watches Net sales growth rate by region Rate of change year on year (LC base) Sales by region (Apr.–Jun.) Region Net Sales growth YoY Japan Increased Asia *China included Increased America Increased Europe Increased Details The sales of core ATTESA brand remained steady, while sales of premium The CITIZEN brand drove growth. Sales remained strong in Thailand and India, mainly driven by mechanical watches. Sales in Taiwan and Hong Kong also remained solid. Sales of both the CITIZEN and BULOVA brands increased in department store channels. In-house e-commerce sales, grew significantly, with high-end ATTESA models and other products performing strongly. Sales of mechanical watches were strong mainly due to the expansion of product line-up. Sales of PROMASTER, among other models, also grew. * The rate of change in total sales of CITIZEN brand watches and BULOVA brand watches only for North America. For other regions, the rate of change only in sales of CITIZEN brand watches. 8 We are now looking at net sales growth by region on a local currency basis. The red bar shows Japan, where the sales of the core ATTESA brand remained steady, while net sales increased because sales of the premium The CITIZEN brand led the business. Sales in Asia, shown in green, rose primarily due to strong sales in Thailand and India, driven by mechanical watches, as well as solid sales in Taiwan and Hong Kong. In North America, shown in blue, sales increased significantly due to strong sales of both the CITIZEN and BULOVA brands in department store channels. Additionally, in-house e-commerce sales grew substantially. In Europe, shown in purple, mechanical watch sales remained strong, mainly due to the expansion of the product line-up. Sales of PROMASTER and other models also grew. As a result, sales increased. Watches Topics Eco-Drive 50th anniversary: The "Powered by Any Light" campaign Launch of a campaign in the core North American market to commemorate the 50th anniversary of Eco-Drive Captivating episodes expressing an innovation based on a technology powered by "Any Light " appeals to the Z and millennial generation users Video Powered by Any Light | 50 Years of Eco-Drive Innovation 9 Next, let's share some news from the watches segment. This year marks the 50th anniversary of CITIZEN's launch of the world's first analog light-powered watch in 1976. The Powered by Any Light campaign was launched to commemorate the 50th anniversary of Eco-Drive in the core North American market. Captivating episodes were created expressing the innovative Eco-Drive technology, which is powered by "Any Light." The target audience of the videos, which can be viewed on YouTube, are younger users—Z and millennial generation in particular. Watches Topics The CITIZEN launches of the 50th anniversary Eco-Drive model Featuring a Tosa washi paper dial dyed Chitose Midori, a deep, calm green. The model incorporates highly accurate Eco-Drive movements that have a variation of +/- 5 seconds per year, and the case and band use super Titaniu , a light scratch-resistant material. Release date: May 28, 2026 Recommended retail price: 462,000 yen (tax included) Limited to 650 pieces worldwide 10 m Turning to The CITIZEN. The CITIZEN has launched a limited-edition Eco-Drive model to commemorate the 50th anniversary. This model features a Tosa washi paper dial dyed Chitose Midori, a deep green color. This shade is associated with pine needles, which remain green throughout all four seasons, symbolizing permanence. The quantity allocated for domestic sales, shipped from Citizen Watch, has been sold out. With a view of global expansion in FY2027, The CITIZEN will continue to foster a worldview that befits CITIZEN's top brand.

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