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Earnings Presentation for 3Q of FY2015

February 15, 2016

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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■3Q15 Results and FY15 Forecast

■3Q15 Results and FY15 Forecast by business segment

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(billion yen)

1-3Q 2014 1-3Q 2015 Y on Y Change

Results Result % Amount

Net Sales 246.6 268.7 9.0% 22.1

Operating Income 23.4 26.1 11.2% 2.6

Operating Margin 9.5% 9.7% - -

Ordinary Income 26.3 27..1 2.9% 0.7

Profit attributable to owners of parent 17.6 18.2 3.3% 0.5

Exchange Rate ¥106/USD¥140/EUR

¥121/USD ¥134/EUR

Net Sales Operating Income

USD +1.30 +0.4

EUR +0.2 +0.07

Results for 3Q of FY2015

Annual Effect of exchange rate(1 weaker yen)

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Forecast 11/10 Forecast 2/12 DIFF.

FY 2015 FY 2015 % Amount

Net Sales 360.0 355.0 △1.4% △5.0

Operating Income 30.5 30.5 - 0

Operating Margin 8.5% 8.6% - -

Ordinary Income 30.5 30.5 - 0

Profit attributable to owners of parent 19.0 19.0 - 0

Exchange Rate ¥118/USD ¥132/EUR ¥120/USD ¥133/EUR

Forecast for FY2015

272.0 309.9

328.4 355.0

206.8 233.5 246.6 268.7

0.0

100.0

200.0

300.0

400.0

FY12 FY13 FY14 FY15

4Q 1‐3Q

11.5

23.7 27.8

30.5

11.3

19.7 23.4 26.1 4.2%

7.6% 8.5% 8.6%

0.0%

4.0%

8.0%

12.0%

16.0%

0.0

10.0

20.0

30.0

40.0

FY12 FY13 FY14 FY15

4Q 1‐3Q OP Margin (FY15)

65.176.4 81.8

86.3

0.2

3.9

4.34.4

3Q15 Result (YoY Change) : Net Sales＋22.1B（+9.0%）Operating Income +2.6B（+11.2%）FY15 Forecast (YoY Change) : Net Sales＋26.6B（+8.1%) Operating Income +2.7B（+ 9.4%)

(E)

(E)

Net Sales Operating Income

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(E)

(E)

(E)

FY2015 Forecast

(billionyen)

(billionyen)

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■3Q15 Results and FY15 Forecast

■3Q15 Results and FY15 Forecast by business segment

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139.5

162.0 172.2

185.0

106.8 125.6 132.1 142.5

0.0

50.0

100.0

150.0

200.0

FY12 FY13 FY14 FY15

4Q 1‐3Q

10.9

17.2 19.6 21.0

9.8

15.6 16.6 18.6

7.9%

10.6% 11.4% 11.4%

0.0%

5.0%

10.0%

15.0%

0.0

10.0

20.0

30.0

FY12 FY13 FY14 FY15

4Q 1‐3Q OP Margin (FY15)

32.6

36.3 40.142.5

1.1

1.53.0

2.4

(E)

(E)

(E)

(E)

(E)

Watches and ClocksNet Sales Operating Income

(billionyen)

(billionyen)

3Q15 Result (YoY Change) : Net Sales＋10.4B（+7.9%）Operating Income +1.9B（+11.7%）FY15 Forecast (YoY Change) : Net Sales＋12.8B（+7.4%) Operating Income +1.4B（+ 6.8%)*Citizen brand shows steady growth in Japan, North America and Europe. Still severe condition in Asia and South America. * Steady growth for high-value added movements, while slower sales for standard movement.

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35.5 41.7

51.7 52.0

26.5 28.4 37.1 38.4

0.0

20.0

40.0

60.0

80.0

100.0

FY12 FY13 FY14 FY15

4Q 1‐3Q

2.0

3.8

6.7 6.7

1.9 1.5

5.0 5.3

5.9%

9.1%

13.1% 12.9%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

0.0

2.0

4.0

6.0

8.0

10.0

FY12 FY13 FY14 FY15

4Q 1‐3Q OP margin (FY15)

8.913.3

14.5 13.6

2.2

1.7 1.4

(E)

(E)(E)

(E)

0.1

(E)

Machine and ToolsNet Sales Operating Income

(billionyen)

(billionyen)

3Q15 Result (YoY Change) : Net Sales＋1.3B（+3.5%）Operating Income +0.3B（+6.4%）FY15 Forecast (YoY Change) : Net Sales＋0.3B（+0.6%) Operating Income 0.0B（△1.4%)* Solid growth in Japan and North America, slower sales in Europe and Asia.* Continuing strong order from customers in current situation.

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59.8 66.7 67.5

81.0

45.7 50.5 49.7 61.3

0.0

20.0

40.0

60.0

80.0

100.0

FY12 FY13 FY14 FY15

4Q 1‐3Q

▲0.2

4.4 4.7

6.1

1.1

3.6 4.2 5.0 1.6%

6.7% 7.0% 7.5%

▲2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

▲ 2.0

0.0

2.0

4.0

6.0

8.0

10.0

FY12 FY13 FY14 FY15

4Q 1‐3Q OP Margin (FY15)

14.116.2 17.7

19.7

0.9

0.4

1.1(E)

(E)

(E)

(E)

(E)

0.8

Device and ComponentsNet Sales Operating Income

(billionyen)

(billionyen)

3Q15 Result (YoY Change) : Net Sales＋11.6B（+23.4%）Operating Income +0.8B（+19.2%）FY15 Forecast (YoY Change) : Net Sales＋13.5B（+19.9%) Operating Income +1.4B（+29.2%)* Revenues from precision machining components and opt-devices increased. * FY15 sales forecast adjusted due to slower sales compared to our expectation for switch new products and quartz crystals.

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21.5 24.3 24.7 24.0

15.9 17.8 18.3 17.7

0.0

10.0

20.0

30.0

40.0

50.0

FY12 FY13 FY14 FY15

4Q 1‐3Q

0.4

1.4

0.9

0.5

0.2

1.0

0.7

0.2

2.1%

6.0%

3.7% 2.1%

0.0%

5.0%

10.0%

0.0

1.0

2.0

FY12 FY13 FY14 FY15

4Q 1‐3Q OP Margin (FY15)

5.56.5 6.3 6.3

0.2

0.4

(E) (E)

(E)

0.3

0.1

(E)

(E)

Electric ProductsNet Sales Operating Income

(billionyen)

(billionyen)

3Q15 Result (YoY Change) : Net Sales△0.6B（△3.6%）Operating Income △0.4B（△65.0%）FY15 Forecast (YoY Change) : Net Sales△0.7B（△2.9%) Operating Income △0.4B（△44.7%)* Revenues from printer and calculator decreased. Revenues from healthcare products increased. * FY15 sales forecast adjusted due to slower sales compared to our expectation in each products.

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15.6 15.0 12.2 13.0

11.8 11.0 9.2 8.6 0.0

10.0

20.0

30.0

40.0

50.0

FY12 FY13 FY14 FY15

4Q 1‐3Q

0  ▲0.1

0

0.5

0.1

▲ 0.4 ▲ 0.3

3.1%

▲0.2%

▲3.8%

0.0%

▲5.0%

0.0%

5.0%

▲0.5

0.0

0.5

FY12 FY13 FY14 FY15

4Q 1‐3Q OP Margin (FY15)

3.8 4.02.9 4.4

0.4

0.0

▲0.4

0.3

(E)

(E)

(E)

0.0 (E)

(E)

Other ProductsNet Sales Operating Income

(billionyen)

(billionyen)

3Q15 Result (YoY Change) : Net Sales△0.5B（△6.5%）Operating Income ＋0.1B（ － ）FY15 Forecast (YoY Change) : Net Sales＋0.8B（＋6.4%) Operating Income ＋0.4B（ － )* Revenues from pachinko-related products decreased as a result of year-end sales remains weak. * Revenues from jewelries increased, driven mainly by the sales of bridal jewelries.

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