wrist watch industry

7/30/2019 Wrist Watch Industry

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WRIST WATCH INDUSTRY

1)

INTRODUCTION:

Hindustan Machine Tools was incorporated in 1953 by theGovernment ofIndiaas a machine tool manufacturing company. Over the years diversifiedintowatches, tractors,printingmachinery,metal formingpresses,diecasting&plasticprocessing machinery, CNC systems & bearings. HMT isheadquartered atBengaluru( Bangalore ). Successful technologyabsorption in all product groups through collaborations with worldrenowned manufacturers and further strengthened by continuous in-

houseR&D. Today, HMT comprises sixsubsidiariesunder the ambit of aholding company, which also manages the tractors business directly.

HMT Limited took overPraga Tools Limitedas one of its subsidiaries1988.[2]Praga Tools Limited was established in May, 1943 as Praga ToolsCorporation Limited to manufacture machine tools with its head quartersatSecunderabad. It was renamed as Praga Tools Limited in 1963. It ismainly involved in manufacture of machine tools including CNC machines.

SPECIFICATIONS:

HMT Limited
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Watcheshttp://en.wikipedia.org/wiki/Watcheshttp://en.wikipedia.org/wiki/Watcheshttp://en.wikipedia.org/wiki/Tractorshttp://en.wikipedia.org/wiki/Tractorshttp://en.wikipedia.org/wiki/Printinghttp://en.wikipedia.org/wiki/Printinghttp://en.wikipedia.org/wiki/Printinghttp://en.wikipedia.org/wiki/Sheet_Metal_Forminghttp://en.wikipedia.org/wiki/Sheet_Metal_Forminghttp://en.wikipedia.org/wiki/Sheet_Metal_Forminghttp://en.wikipedia.org/wiki/Castinghttp://en.wikipedia.org/wiki/Castinghttp://en.wikipedia.org/wiki/Castinghttp://en.wikipedia.org/wiki/Castinghttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Bengaluruhttp://en.wikipedia.org/wiki/Bengaluruhttp://en.wikipedia.org/wiki/Bengaluruhttp://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/Subsidiarieshttp://en.wikipedia.org/wiki/Subsidiarieshttp://en.wikipedia.org/wiki/Subsidiarieshttp://en.wikipedia.org/wiki/Praga_Tools_Limitedhttp://en.wikipedia.org/wiki/Praga_Tools_Limitedhttp://en.wikipedia.org/wiki/Praga_Tools_Limitedhttp://en.wikipedia.org/wiki/HMT_Limited#cite_note-2http://en.wikipedia.org/wiki/HMT_Limited#cite_note-2http://en.wikipedia.org/wiki/HMT_Limited#cite_note-2http://en.wikipedia.org/wiki/Secunderabadhttp://en.wikipedia.org/wiki/Secunderabadhttp://en.wikipedia.org/wiki/Secunderabadhttp://en.wikipedia.org/wiki/File:Hindustan_Machine_Tools_Logo.gifhttp://www.hmtwatches.in/default.aspxhttp://en.wikipedia.org/wiki/File:Hindustan_Machine_Tools_Logo.gifhttp://www.hmtwatches.in/default.aspxhttp://en.wikipedia.org/wiki/Secunderabadhttp://en.wikipedia.org/wiki/HMT_Limited#cite_note-2http://en.wikipedia.org/wiki/Praga_Tools_Limitedhttp://en.wikipedia.org/wiki/Subsidiarieshttp://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/Bengaluruhttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Castinghttp://en.wikipedia.org/wiki/Castinghttp://en.wikipedia.org/wiki/Sheet_Metal_Forminghttp://en.wikipedia.org/wiki/Printinghttp://en.wikipedia.org/wiki/Tractorshttp://en.wikipedia.org/wiki/Watcheshttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_India


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Type Public Sector Undertaking

Industry Engineering

Founded 1953

Headquarters Bangalore

Key people S.G. Sridhar(Chairman and Managing Director)

Products Machine Tools, Tractors, watches

ANNUAL REPORT (LATEST AVAI LABLE)

2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01

oPeraTingsTaTisTics

Sales 1352 1514 3688 2184 2354 2692 4535 8057 10

Other Income * 371 618 3498 7710 306 939 1039 866 3

Materials 357 551 1288 926 653 891 918 2345 4

Employee Costs 5343 5426 4934 5793 4285 4274 5746 6327 7

Other Costs 1995 1952 11968 3622 3872 5858 4642 5782 5

Depreciation 123 155 195 245 252 352 331 383

Earnings before Interest -6401 -5816 -11405 -314 -7309 -8102 -7429 -7456 -3

Interest 9982 8864 8161 7269 6144 5379 3863 3173 2

Earnings/(Loss) before Tax -16383 -14680 -19566 -7583 -13453 -13481 -11292 -10629 -5Taxation 22 15 15 17

Net Earnings -16405 -14695 -19581 -7600 -13453 -13481 -11292 -10629 -5

financiaL PosiTion

Net Fixed Assets 1243 1337 1220 1412 1647 1900 2183 2521 2
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Types_of_business_entity


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Current Assets 6448 7769 9796 8600 8376 9609 12919 17487 20

Current Liabilities & Provisions 21318 20106 18360 18586 16506 17520 22392 13416 1

Working Capital -14870 -12338 -8563 -9986 -8130 -7911 -9473 4071 8

Capital Employed -13627 -11001 -7343 -8574 -6483 -6011 -7290 6592 1

Investments 1 1 1 1 1 1 1 1Miscellaneous Expenditure - 63 290 9733 11587 13125 14131 8324 4

Borrowings 98780 85064 74253 62984 59298 53375 34102 30885 22

Net Worth -112405 -96063 -81595 -71557 -65780 -53865 -41391 -24292 -10

oTHersTaTisTics

Capital Expenditure 27 195 1 18 4 116

Internal Resources Generated -16282 -14540 -19386 -7355 -13201 -13129 -10961 -10246 -5

Working Capital Turnover Ratio -0.09 -0.12 -0.43 -0.22 -0.29 -0.34 -0.48 1.98

Current Ratio 0.30 0.39 0.53 0.46 0.51 0.55 0.58 1.30

Return on Capital(%) -51.98 -63.41 -143.31 -4.17 -117.00 -121.83 -203.81 -81.55 -6

Employees (Nos) 2050 2126 2145 2162 2180 2226 2333 3436 4

Per Capita Sales 0.66 0.71 1.72 1.01 1.08 1.21 1.94 2.34

* Includes Extra Ordinary Items

NOTE:CSR ACTIVIES AND DATA RELATED TO ITIS NOT AVAILABLE


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2)

INTRODUCTION:

Titan was established in 1987, becoming the third Indian watch manufacturer

afterHMTandAllwyn. Titan formed ajoint venturewithTimex Group, which

lasted until 1998, to set up a distribution network across India.

As of 2011, Titan watches account for nearly 60% share of the total Indian market

and are also sold in about 40 countries through marketing subsidiaries basedinLondon,Aden,DubaiandSingapore. Titan offers various brands includingSteel, Regalia, Raga, Fastrack, Technology, Nebula, Bandhan, Sonata, Octane.

Titan has claimed to have manufactured the world's slimmest wrist watch branded

as Titan Edge with a total thickness of 3.5 mm and a movement of 1.15 mm.

In July 2011, Titan launched the HTSE (High Tech Self Energized) collection ofwatches which run on light. According to Titan, these watches can be charged with

as low as 200 lux of light, which makes them chargeable with light even from acandle.On November 16, 2011, Titan Industries acquired Swiss watch

makerFavre-Leubafor Euro 2 million.

SPECIFICATIONS:

Titan Industries Limited

Type Public

Industry Luxury goods
http://en.wikipedia.org/wiki/Hindustan_Machine_Toolshttp://en.wikipedia.org/wiki/Hindustan_Machine_Toolshttp://en.wikipedia.org/wiki/Hindustan_Machine_Toolshttp://en.wikipedia.org/wiki/Hyderabad_Allwyn_Limitedhttp://en.wikipedia.org/wiki/Hyderabad_Allwyn_Limitedhttp://en.wikipedia.org/wiki/Hyderabad_Allwyn_Limitedhttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Timex_Group_USAhttp://en.wikipedia.org/wiki/Timex_Group_USAhttp://en.wikipedia.org/wiki/Timex_Group_USAhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Adenhttp://en.wikipedia.org/wiki/Adenhttp://en.wikipedia.org/wiki/Adenhttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Favre-Leubahttp://en.wikipedia.org/wiki/Favre-Leubahttp://en.wikipedia.org/wiki/Favre-Leubahttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Luxury_goodshttp://en.wikipedia.org/wiki/Luxury_goodshttp://en.wikipedia.org/wiki/File:Titan_Industries_Logo.svghttp://en.wikipedia.org/wiki/File:Titan_Industries_Logo.svghttp://en.wikipedia.org/wiki/Luxury_goodshttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Favre-Leubahttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Adenhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Timex_Group_USAhttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Hyderabad_Allwyn_Limitedhttp://en.wikipedia.org/wiki/Hindustan_Machine_Tools


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Founded 1987

Headquarters Bengaluru[1],India

Area served Global

Key people Vikram Kapur (Chairman)

Bhaskar Bhat (MD)

Products Watches/accessories,jewelry, precision

engineering andEyewear

Revenue 8,942crore(US$1.5 billion) (2012)[2]

Net income 601crore(US$100 million) (2012)[3]

Employees 6,000

Parent Tata Group

TIDCO

CSR ACTIVI TI ES:

Community Development and CSR Policy

Titan Industries has a clearly defined policy for Corporate Social Responsibility (CSR). As part of

the company's CSR initiative, the manufacturing units of Watch and Jewellery Divisions at Hosurhave acquired the certifications 'ISO 9001: 2000 Quality Management System Standards' and

'ISO 14001:2000 Environment System Standard' emphasising the efforts to be an ecologically

responsible organisation.
http://en.wikipedia.org/wiki/Bengaluruhttp://en.wikipedia.org/wiki/Bengaluruhttp://en.wikipedia.org/wiki/Bengaluruhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Watcheshttp://en.wikipedia.org/wiki/Watcheshttp://en.wikipedia.org/wiki/Jewelryhttp://en.wikipedia.org/wiki/Jewelryhttp://en.wikipedia.org/wiki/Jewelryhttp://en.wikipedia.org/wiki/Eyewearhttp://en.wikipedia.org/wiki/Eyewearhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Titan_Industries#cite_note-2http://en.wikipedia.org/wiki/Titan_Industries#cite_note-2http://en.wikipedia.org/wiki/Titan_Industries#cite_note-2http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Titan_Industries#cite_note-3http://en.wikipedia.org/wiki/Titan_Industries#cite_note-3http://en.wikipedia.org/wiki/Titan_Industries#cite_note-3http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/TIDCOhttp://en.wikipedia.org/wiki/TIDCOhttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/TIDCOhttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Titan_Industries#cite_note-3http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Titan_Industries#cite_note-2http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Eyewearhttp://en.wikipedia.org/wiki/Jewelryhttp://en.wikipedia.org/wiki/Watcheshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bengaluruhttp://en.wikipedia.org/wiki/Bengaluru


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The company's diverse CSR initiatives include:

Children's education

Enabling the disabled

Artisan parks Women's empowerment

Environment management programmes

Miscellaneous community initiatives

Titan Industries' community initiatives are committed to build partnership for social

development, focus on sustainable initiatives and improve the quality of life of the communities

where the initiatives operate. With a dedicated force of 250 enthusiastic employee volunteers,

the company has formed a Community Development Forum. This forum works towards

mobilising society and volunteers to make the community initiatives a success. The company's

miscellaneous community development activities include orphanage support, HIV/Aids

awareness, village adoption, vision improvement program, a program to provide work to rural

unemployed women, community rehabilitation, tsunami relief work, eradication of child labour

and environment protection, to name a few. The company has made a positive change in the

lives of over 2000 people.

Corporate responsibility begins at home

Titan Industries believes that corporate responsibility begins with the employees. The company

ensures that the harmony, peace and inclusive approach at work place are maintained. Efforts

are made to engage the employees in programs designed to fulfil our ecological and social

responsibility. Various work-place initiatives are conducted to achieve this: War on Waste - an

initiative that reduced the impact of manufacturing operations on the environment. At Titan

Industries, Corporate Social Responsibility is more than philanthropy - it is an internal process

that reflects the soul of the company.

Successful CSR programmes:

Titan Industries has embarked on and completed several community development programmes

as part of its CSR initiative. A few among these successful projects are:

Titan Scholarship - Have been awarded to students in Dharmapuri and Krishnagiri

districts (Tamil Nadu), based on academic performance and socio-economic background for

over 550 students form the economically backward section.

Titan Industries has embarked on and completed several community development programmes


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as part of its CSR initiative. A few among these successful projects are:

Titan Township - A sustainable community in Hosur (Tamilnadu), that provides housing to

1300 residents collaborating with NGOs MCA and Ashraya.

Employment- To over 120 physically challenged people.

Karigar Park - A social entrepreneurship project with six parks, benefiting over 400

artisans.

Titan School and Titan Foundation for Education - A primary school with

over 550 students, expanding to classes IX and X with a provision to accommodate 160 more

students.

Meadow Project (Myrada)- a collaborated effort with self-help groups of rural

women to provide gainful employment to more than 400 rural women in and around Hosur

(Tamil Nadu)M

Recognition of CSR:

As an appreciation of its significant contribution to the community welfare, Titan Industries has

received the 'President of India's Award' for employing the disabled. Titan Industries, a

signatory to the Global Compact, is a recipient of the prestigious 'Helen Keller Award' and the

'Mother Teresa Award'. The company has also been ranked as one of the top four, top ten and

Top eleven companies in the 'Karmayog CSR Rating of India's Top 500 Companies' in December

2007, 2008 and 2009 respectively.

Other noteworthy awards for CSR include:

- FICCI-SEDF Award for Social Responsibility

- The Rotary Club of Bangalore Award for Corporate Citizenship

- The PHDCII Award for Good Corporate Citizenship

Ranked among the nation's best corporate citizens, Titan Industries is committed to take on the

social responsibility and fulfil it with dedication.


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PERFORMANCE STATS :

Annual results in brief

(Rs crore)

Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Sales 10,112.67 8,839.28 6,521.64 4,675.00 3,848.62

Operating profit 1,010.63 833.84 586.36 395.54 297.39

Interest 50.64 43.71 8.21 25.42 29.43

Gross profit 1,060.76 883.34 633.48 381.40 272.32

EPS (Rs) 8.17 6.76 9.70 5.64 3.58

Annual results in details


Other income 100.77 93.21 55.33 11.28 4.36

Stock adjustment -812.88 -761.86 -500.28 -111.66 -178.67

Raw material 6,772.92 6,145.08 4,454.66 3,148.90 2,591.29

Power and fuel - - - - -

Employee expenses 484.52 392.34 392.96 274.49 233.40

Excise - - - - 44.34

Admin and selling expenses 377.09 381.42 303.27 211.15 181.36

Research and development expenses - - - - -


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Expenses capitalised - - - - -

Other expenses 2,280.39 1,848.46 1,284.67 756.58 679.51

Provisions made - - - - -

Depreciation 54.49 44.90 34.48 60.08 41.76

Taxation 281.09 238.29 165.36 68.08 60.68

Net profit / loss 725.18 600.15 430.42 250.32 158.96

Extra ordinary item - - - - -

Prior year adjustments - - -3.22 -2.92 -10.92

Equity capital 88.78 88.78 44.39 44.39 44.39

Equity dividend rate - - - - -

Agg.of non-prom. shares (Lacs) 4167.78 4167.78 206.46 208.10 208.39

Agg.of non promotoholding (%) 46.90 46.90 46.50 46.90 46.90

OPM (%) 9.99 9.43 8.99 8.46 7.73

GPM (%) 10.39 9.89 9.63 8.14 7.07

NPM (%) 7.10 6.72 6.54 5.34 4.13


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Balance sheet

(Rs crore)


Sources of funds

Owner's fund

Equity share capital 88.78 88.78 44.39 44.39 44.39

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 1,876.09 1,361.12 980.99 679.99 506.85

Loan funds

Secured loans - 5.89 67.70 72.79 116.76

Unsecured loans - - - - 58.65

Total 1,964.87 1,455.79 1,093.08 797.17 726.65

Uses of funds

Fixed assets

Gross block 911.19 738.03 672.15 624.33 593.04

Less : revaluation reserve - - - - -

Less : accumulated depreciation 462.56 369.31 389.08 361.70 318.56

Net block 448.64 368.73 283.07 262.63 274.48

Capital work-in-progress 41.66 30.63 19.36 12.29 19.52

Investments 18.51 16.05 9.13 7.63 7.66


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Net current assets

Current assets, loans & advances 5,365.98 4,307.53 3,444.38 1,821.65 1,492.42

Less : current liabilities & provisions 3,909.92 3,267.14 2,662.85 1,307.02 1,067.44

Total net current assets 1,456.06 1,040.39 781.53 514.63 424.98

Miscellaneous expenses not written - - - - -

Total 1,964.87 1,455.79 1,093.08 797.17 726.65

Notes:

Book value of unquoted investments 18.42 15.96 9.03 7.53 7.57

Market value of quoted investments 0.19 0.22 0.24 0.25 0.10

Contingent liabilities 476.74 191.17 93.07 72.19 65.46

Number of equity shares outstanding (Lacs) 8877.86 8877.86 443.89 443.89 443.89


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Profit loss account

(Rs crore)


Income

Operating income 10,112.67 8,838.38 6,661.75 4,674.42 3,881.75

Expenses

Material consumed 7,574.71 6,624.00 4,803.96 3,449.39 2,762.19

Manufacturing expenses 45.56 35.17 29.87 23.58 25.10

Personnel expenses 484.53 395.24 395.07 275.64 234.20

Selling expenses - 463.37 516.88 358.21 308.29

Adminstrative expenses 997.25 452.67 287.72 131.34 205.38

Expenses capitalised - -2.70 -0.19 -0.04 -0.09

Cost of sales 9,102.04 7,967.76 6,033.31 4,238.12 3,535.06

Operating profit 1,010.63 870.62 628.44 436.30 346.68

Other recurring income 100.77 94.11 56.08 11.78 5.26

Adjusted PBDIT 1,111.40 964.74 684.52 448.08 351.94

Financial expenses 50.64 79.14 49.23 63.52 68.46

Depreciation 54.49 44.90 34.48 60.08 41.76

Other write offs - - - - -

Adjusted PBT 1,006.27 840.70 600.81 324.48 241.73


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Tax charges 281.09 233.61 165.36 68.08 60.68

Adjusted PAT 725.18 607.09 435.45 256.40 181.05

Non recurring items - -2.26 -1.81 -3.16 -11.17

Other non cash adjustments - -4.68 -3.22 -2.92 -10.92

Reported net profit 725.18 600.16 430.42 250.32 158.96

Earnigs before appropriation 1,367.61 1,033.07 703.33 461.35 377.51

Equity dividend 186.44 155.36 110.97 66.58 44.39

Preference dividend - - - - -

Dividend tax 31.68 25.20 18.00 11.06 7.54

Retained earnings 1,149.49 852.50 574.36 383.71 325.58

Sales (2007-2008) = Rs. 3000 crores (rounded off)

Net profit after tax = Rs. 160 crores (rounded off)

CSR Budget = Not Available
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3)

INTRODUCTION:

Citizen Holdings Co., Ltd. (Shichizun Hrudingusu Kabushiki-gaisha?) is the

core company of aJapaneseglobalcorporategroup based inTokyo,Japan. The

company was originally founded as Shokosha Watch Research Institute in 1918and is currently known as the manufacturer of Cincom precision lathe machine

tools as well as Citizen watches. The trade name originated from a pocket watch

Citizen sold in 1924. It is one of the world's largest producers of watches.

Eco-Drivewatches use a battery recharged by a solar panel hidden under the

watch face. In the rare and discontinued Eco-Drive Duo series, the solar power

was supplemented by anautomatic quartzpower source. There was also an

Eco-Drive Thermo model that exploited temperature differentials between the

wearer's skin temperature and ambient temperature to recharge the battery.

However, the only Eco-Drive system described on the Citizen Watch official website is the one depending solely on light to recharge. Features similar to the Eco-

Drive have been developed by other manufacturers likeCasioorJunghans. All

Citizen Eco-Drive models are made in Japan but assembled in China.

SPECIFICATIONS:

Type Public(TYO:7762)

Founded 1918 as Shokosha Watch Research Institute

(on May 28, 1930, company took on current
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name)

Headquarters Nishitky,Tokyo

Key people Makoto Umehara (President)

Products Watches and parts, Information equipment and

parts, Electronic equipment and parts,

Industrial machinery and equipment, Jewelry

Revenue 252.5 billion

$2.72 billion (FY2010)[1]

Operating

income

7.2 billion

$77.7 million (FY2010)[1]

Net income 3.5 billion

$37.9 million (FY2010)[1]

Employees 16,813

(As of March 31, 2010)

[1]

CSR ACTIVI TI ES:

Environmental Management System

We have established a group-wide environmental management system to efficiently and precisely

promote environmental management throughout the Citizen Group. The Group Environmental

Management Committee meets each year, bringing together environmental managers at domestic

offices to determine the status of activities by each company to investigate annual environmental

policies and common issues and make decisions.

Our domestic production companies have obtained ISO 14001 certification and conduct environmental

management based on the nature of their business. At our overseas production companies meanwhile,
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we focus on initiatives that are crucial to manufacturing environmentally-friendly products, including

green procurement and chemical substance management, and continue to make steady progress in

terms of ISO 14001 certification. We also carry out activities aimed at reducing environmental impact

at non-manufacturing companies, based on the nature of each company's operations.

Environmental Education and Awareness Building Efforts

In practicing environmental management, it is essential that all Group employees are aware of the

importance of the activities. For instance, Citizen Holdings' Tokyo Office incorporates environmental

education into its training for new recruits. It also provides Environmental Personnel Training, Internal

Auditor Training, and Environmental Statutory Compliance Assessment Training annually for personnel

working on the environment in each department. Production departments handling toxic, harmful, and

other hazardous substances conduct emergency drills.

We have introduced the Citizen Business License scheme, an original scheme that encourages and

supports proactive efforts to acquire public qualifications such as those for pollution control managers

and energy managers.

Environmental auditing

Our Tokyo and Tokorozawa Works undergo an annual external audit conducted by an ISO assessment

organization. We also conduct internal audits twice a year as a rule.

Environmental Risk Management

Our environmental risk management activities within the Citizen Group cover areas such as

compliance with environmental legislation, management of chemical substances contained in our

products, waste and recycling governance and measures to combat soil and groundwater

contamination. We aim to implement effective measures at all Group companies based on information

exchanged via the Group Environmental Management Committee.


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PERFORMANCE STATS :

EARNINGS INFORMATION

Items 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Net sales (millions of yen)

3757

15

3572

88

3359

40

3361

88

3366

85

2968

57

2525

02

2849

64

2797

86

2720

50

Cost of sales (millions of

yen)

2671

09

2470

75

2298

26

2304

23

2263

83

2050

05

1699

59

1886

02

1809

77

1765

98

Selling general and

administrative expenses

(millions of yen)

7309

8

7312

0

7559

6

8384

5

8603

9

9045

3

7531

3

7965

8

8228

0

8390

2

Operating income (millions

of yen)

3550

6

3709

2

3051

6

2192

0

2426

2 1398 7229

1670

2

1652

8

1154

9

Ordinary income (millions

of yen)

3539

2

4011

8

3463

4

2599

1

2474

6 748 7976

1480

2

1672

7

1380

5

Net income (millions of

yen)

1946

5

2023

3

1859

4 7145

1218

9

-

2580

6 3527 5123 7698

-

8855

Overseas sales ratio () 62.2 58.2 58 58 60.1 59.2 59.9 61.9 61.6 62.5

Selling general and

administrative expenses to

net sales () 19.5 20.5 22.5 24.9 25.6 30.5 29.8 28 29.4 30.8

Gross profit to net sales

() 28.9 30.8 31.6 31.5 32.8 30.9 32.7 33.8 35.3 35.1

Operating income margin

() 9.5 10.4 9.1 6.5 7.2 0.5 2.9 5.9 5.9 4.2

BALANCE SHEET

Items 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total assets (millions

of yen)

3915

26

3905

65

4024

97

3829

71

3879

75

3742

39

3524

62

3303

21

3380

25

3546

70

Net assets (millions of

yen)

2516

05

2706

49

2764

11

2544

26

2438

30

1842

29

1863

62

1841

32

1888

53

1924

09

Total current assets(millions of yen)

275565

273126

267921

231442

232980

232372

221158

206364

219438

225868

Total fixed assets

(millions of yen)

1159

60

1174

38

1345

75

1515

29

1549

94

1418

66

1313

03

1239

57

1185

87

1288

01

Total current liabilities

(millions of yen)

1009

81

8282

0

7935

1

8357

8

7523

1

8534

2

8525

7

6561

1

8434

9

1136

38

Total fixed liabilities

(millions of yen)

3893

9

3709

5

4466

3

4496

5

6891

2

1046

67

8084

1

8057

7

6482

2

4862

2


18/18

Interest-bearing debt

(millions of yen)

3209

9

2956

1

2723

5

2761

4

5791

7

1223

52

1004

66

7395

7

7322

3

7396

2

Equity ratio () 57.4 61.7 68.7 65.9 62.4 47.9 51.8 55.4 55.5 53.3

ROE () 8.7 8.4 7.2 2.7 4.9 -12.3 2 2.8 4.2 -4.7

ROA () 5.1 5.2 4.7 1.8 3.2 -6.8 1 1.5 2.3 -2.6

CSR Budget = Not Available

wrist watch industry

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