08-31-12 citizen_rd_q1_2

7/31/2019 08-31-12 citizen_rd_Q1_2

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Earnings Presentation for 1Q FY 2012

Aug 10, 2012

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 variety of factors.

Figures less than 1 billion yen have been rounded down.

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2

1. 1Q12 Results and FY 12 Forecast

2.2.2. 1Q12 Results and FY1Q12 Results and FY1Q12 Results and FY 1112 Forecast2 Forecast2 Forecast

(Business segments)(Business segments)(Business segments)

Supplementary InformationSupplementary InformationSupplementary Information

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3

1Q12 Results

EURO

USD

3.7%

3.8%

4.0%

-

% to net

sales

▲0.3

+0.2

+0.7

+1.6

Amount

¥117

¥82

2.3

2.4

2.5

63.6

Results

1Q11

¥106

¥81

2.0

2.6

3.2

65.2

Results

1Q12

3.1%

4.1%

5.0%

-

% to net

sales %（billion yen）

YoY change

+9.9%Ordinary income

+30.3%Operating income

▲ ¥11

▲ ¥1Exchange

rate

▲15.7%Net income

+2.6%Net sales

+50 million yen+120 million yenEURO

+400 million yen+1,200 million yenUSD

Operating incomeNet sales Annual effect of

exchange rate

(1 weaker yen)

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1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

Other products

Electronic products

Devices and components

Machine tools

Watches and clocks

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

72.163.6 76.5

5.02.5 6.6

67.5

2.3

76.2

3.2

65.2

5.7

Quarterly Results(billion yen)

Net sales

Operatingincome

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FY 12 Forecast

EURO

USD

EURO

USD

Exchange

rate

Net income

Ordinary incomeOperating income

Net sales

Exchange

rate

Net income

Ordinary income

Operating income

Net sales

(billion yen)

4.1%2.8%

6.8%6.0%6.9%5.9%

-- 295.0292.0279.7

20.520.516.520.020.016.7

12.012.07.6

¥103 ¥105 ¥115

¥81 ¥80 ¥80

1H3.3%

4.5%

5.6%

-

% to net

sales

3.5%

5.7%

6.4%

-

% to net

sales

¥110

¥79

4.4

6.1

7.5

135.7

Results

FY 11

¥105

¥80

5.0

8.0

9.0

140.0

Forecast

5/11E

FY 12

¥102

¥80

5.0

8.0

9.0

141.5

Forecast

8/10E

FY

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6

1.1.1. 1Q1Q1Q1112 Results and FY 12 Forecast2 Results and FY 12 Forecast2 Results and FY 12 Forecast

2. 1Q12 Results and FY 12 Forecast

(Business segments)

Supplementary InformationSupplementary InformationSupplementary Information

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7

0

12

24

36

48

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

Watches Clocks

30.3 34.7 41.7 32.5 31.2 38.7

6.5%

5.6%

13.7%

10.4%

12.3%

6.3%

0

2

4

6

8

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

0%

5%

10%

15%

20%

Operating margin

1.9 3.5 5.7 1.8 2.0 4.7

1Q12 Results・2Q12 Forecast

Watches and Clocks

(billion yen)

Sales Operating income

(billion yen)

Net sales ▲ ¥0.3B Operating income ¥B

• Net

1Q12 Results (Compared to 1Q11）

Net sales +¥0.8B Operating income +¥0.1B

• Sales in the Japanese market were strong.

• Overseas, sales fell in European markets but those for markets in other

regions were strong.

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1H12 Forecast (Compared to 1H11）


0

20

40

60

80

1H11 2H11 1H12E 2H12E

Watches Clocks

11.3%9.7%

8.5%10.1%

0

3

6

9

12

1H11 2H11 1H12E 2H12E

0%

5%

10%

15%

20%

Operating margin

5.5 7.5 6.8 8.765.0 74.3 70.0 77.0

FY12 Forecast

Watches and ClocksSales Operating income

(billion yen) (billion yen)

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9

0

5

10

15

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

9.4%

11.9% 12.4%

14.3%

10.6%

12.7%

0.0

0.6

1.2

1.8

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

0%

5%

10%

15%

Operating margin

9.3 10.9 9.6 11.9 9.5 12.4 0.8 1.3 1.1 1.7 1.0 1.5

Machine ToolsSales Operating income




Net sales +¥0.1B Operating income +¥0.1B• Japan: Sales, of automotive components in particular, were firm.

• Asia: Sales in Asian markets were strong, but Chinese market was stagnant.

• U.S.: Sales in the U.S. market were solid.

• Europe: European markets as a whole were sluggish, despite firm sales of automotive components.

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Machine Tools

20.3 21.6 22.0 23.0 2.1 2.9 2.6 2.4

Operating incomeSales



FY12 Forecast

0

5

10

15

20

25

1H11 2H11 1H12E 2H12E

10.7%

13.4%

11.8%

10.4%

0.0

0.7

1.4

2.1

2.8

3.5

1H11 2H11 1H12E 2H12E

0%

3%

6%

9%

12%

15%Operating margin


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▲▲▲▲2.7%

2.4%

3.9%3.5% 3.7%1.3%

▲ 0.5

0.0

0.5

1.0

1.5

1Q11 2Q11 3Q11 4Q11 1Q12 2Q11E

▲4%

0%

4%

8%

12%

Operating margin

0

5

10

15

20

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

Opto devices Quartz devices

Other parts

15.5 16.2 15.4 14.1 15.3 16.6 0.5 0.6 0.1 ▲0.3 0.6 0.4

Devices and ComponentsSales Operating income




Net sales ▲ ¥0.1B Operating income +¥0.0B• Sales of lightning LEDs were healthy, despite a sales decline of mobile phone LEDs.

• Sales of micro display devices rose thanks to demand recovery from the aftermath of floods in Thailand.

• Sales of automotive components increased thanks to share expansion and positive effects of eco-car

tax break.

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Operating income

3.1%

▲▲▲▲0.6%

3.6% 3.6%

▲ 0.5

0.0

0.5

1.0

1.5

2.0

1H11 2H11 1H12E 2H12E

▲5%

0%

5%

10%

15%

20%

Operating margin

0

8

16

24

32

40

1H11 2H11 1H12E 2H12E

Opto devices Quartz devices Other parts

Devices and Components

31.8 29.5 32.0 33.5 1.1 ▲0.1 1.0 1.2

Sales

Net sales +¥0.2B Operating income ▲ ¥0.1B


FY12 Forecast


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0

2

4

6

8

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

Healthcare equipment

Printers, calculators

4.0%4.6%

0.9% 2.7%

5.2%

0.7%

0

0.1

0.2

0.3

0.4

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

0%

2%

4%

6%

8%

Operating margin

5.6 6.1 4.9 5.8 4.8 5.6 0.2 0.2 0.0 0.3 0.0 0.1

Electronic ProductsSales Operating income

(billion yen)(billion yen)



Net sales ▲ ¥0.7B Operating income ▲ ¥0.1B• Sales of thermal printers in the U.S. markets is healthy, but stagnant in the Japanese and European

markets.

• Sales of dot printers in China fell due to slowdown in the introduction of the taxation system.

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14

0

3

6

9

12

1H11 2H11 1H12E 2H12E

Healthcare equipment

Printers, calculators

Electronic Products

11.7 10.8 10.5 12.0 0.5 0.3 0.2 0.6


Net sales ▲ ¥1.2B Operating income ▲ ¥0.3B


FY12 Forecast

1.9%

5.0%

3.1%

4.3%

0

0.2

0.4

0.6

0.8

1H11 2H11 1H12E 2H12E

0%

2%

4%

6%

8%Operating margin


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0

2

4

6

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E

Other

Pachinko-related products

Jewelry

4.8%

▲▲▲▲12.2%

7.8%

▲▲▲▲5.1%

▲▲▲▲8.9%

▲▲▲▲0.1%

▲ 0.6

▲ 0.3

0.0

0.3

0.6

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12E▲16%

▲8%

0%

8%

16%

Operating margin

2.7 3.9 4.6 3.0 4.3 2.6 ▲0.3 ▲0.0 0.2 ▲0.2 0.3 ▲0.1

Other ProductsSales Operating income




Net sales + ¥1.5B Operating income +¥0.6B• Jewelry: Sales slightly increased thanks to solid business for event planning of various types.

• Pachinko-related products : Sales rose thanks to major customers’ demand for replacing existing

equipment.

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(billion yen)(billion yen)

Other Products

6.7 7.6 7.0 8.0 ▲0.3 ▲0.0 0.1 0.2



FY12 Forecast

0

2

4

6

8

10

1H11 2H11 1H12E 2H12E

Other Pachinko-related productsJewelry

▲▲▲▲0.6%

2.5%

▲▲▲▲5.1%

1.4%

▲ 0.8

▲ 0.4

0.0

0.4

0.8

1H11 2H11 1H12E 2H12E

▲10%

▲5%

0%

5%

10%

Operating

margin


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17

1.1.1. 1Q1Q1Q1112 Results and FY12 Forecast2 Results and FY12 Forecast2 Results and FY12 Forecast

2.2.2. 1Q12 Results and FY1Q12 Results and FY1Q12 Results and FY1112 Forecast2 Forecast2 Forecast

(Business segments)(Business segments)(Business segments)

Supplementary Information

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R&D

10.8 10.58.4 8.2 8.0 8.0

3.2%3.5% 3.4%

2.9% 2.9%

2.7%

0

3

6

9

12

15

18

FY07 FY08 FY09 FY10 FY11 FY12E

0%

1%

2%

3%

4%

5%

6%

R&D% to net sales

Supplementary

(billion yen)

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Capex / Depreciation

25.1

8.7

20.021.4

20.1

14.9 14.4 14.2

16.0

19.5

13.9

17.2

0

4

8

12

16

20

24

28

32

FY07 FY08 FY09 FY10 FY11 FY12E

Capex

Depreciation

Supplementary

(billion yen)

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＜summary＞Consolidated Statements of Cash Flow

4,1362,730Capex

3,2743,205Depreciation

（reference）

65,83069,670Cash and cash equivalents at end of term

68,93768,201Cash and cash equivalents at beginning of

term

▲3,107444Net increase in cash and cash equivalents

▲1,614▲1,210Effect of exchange rate changes on cash and

cash Equivalents

▲620▲1,835Cash flows from financing activities

▲10,077▲3,811Cash flows from investing activities

9,2047,302Cash flows from operating activities

1Q121Q11

Supplementary

(million yen)

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Free Cash Flow

26.3

14.6

33.4

21.9 19.5

58.6

30.6

6.4

14.4 15.1

26.97.5 4.4

▲▲▲▲16

▲▲▲▲32.2

0

15

30

45

60

FY07 FY08 FY09 FY10 FY11

Free cash flow

Cash flow from investing activities

Cash flow from operating activities

13.7

▲▲▲▲ 31.1▲▲▲▲ 5.2 ▲▲▲▲ 0.1▲▲▲▲ 1.6

▲ 40

▲ 20

0

20

40


Net cash flow


Supplementary

(billion yen)

(billion yen) ※Net cash flow=Cash and cash equivalents + Marketable securities-Interest bearing debt

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346,840,088

324,004,850322,120,471320,257,278

333,777,359

300,000,000

325,000,000

350,000,000

375,000,000

400,000,000


Average number of outstanding shares during term

EPS

Supplementary

（billion yen）

（shares）

（Yen）

※excluding treasury stock

12.1

▲▲▲▲ 25.8

3.5 5.1 7.6

¥11.01¥15.90

▲▲▲▲¥77.32

¥23.76¥35.14

▲ 27

▲ 18

▲ 9

0

9

18

27


▲ 90

▲ 60

▲ 30

0

30

60

90

Net income

EPS(right axis)

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23

12.15.13.5

▲▲▲▲ 25.8

7.6

4.9%

▲▲▲▲12.3%

2.0%

2.7%3.9%

▲ 26

▲ 13

0

13

26


▲16%

▲8%

0%

8%

16%

Net income

ROE (right axis)

247.3

213.5

187.8 191.5 197.1

150

200

250

300


Shareholders equity

ROE

Supplementary

（billion yen）

（billion yen） ※average of the beginning and end of the term

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24

▲▲▲▲ 25.8

5.17.6

3.3 2.2 2.2 2.5

20.0

3.5

▲ 26

▲ 13

0

13

26

FY09 FY10 FY10

Purchases for treasury stock

Total dividends paid

Net income

（billion yen）

Dividends

per share

(Full Year)

44.0%33.7%

63.6%

27.0%

0%

30%

60%

90%

120%

FY08 FY09 FY10 FY11 FY12E

Ratio of return to shareholders

Ratio of Return to Shareholders

30%

FY08 FY09 FY10 FY11

¥8.00 ¥10.00E ¥7.00 ¥7.00 ¥10.00

Supplementary

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25

8,920 8,810 8,737 8,779 9,021

17,62916,632 16,348 14,946 15,473

0

5,000

10,000

15,000

20,000

25,000

30,000

2011/6 2011/9 2011/12 2012/3 2012/6

Overseas

Japan

Group Employees (consolidated)

Supplementary

（person）

24,49423,72525,08525,44226,549

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