Securities Report - 141st Fiscal Period (2025/04/01 - 2026/03/31)

Citizen Watch Co., Ltd. Securities Report - 141st Fiscal Period (2025/04/01 - 2026/03/31)

The company is advancing environmentally conscious technology development and strategic global expansion to achieve sustainable growth. Eco-Drive technology, which uses light as a power source, is a proprietary system that eliminates the need for battery replacement. The company will continue to enhance this technology, aiming for higher power generation efficiency and longer lifespan.

Financially, sales have slightly increased compared to the previous fiscal year, and the operating profit margin has improved. This is due to a higher sales ratio of premium models and optimization of cost structures. In overseas markets, steady growth has been observed in Asia and North America, particularly driven by strengthened sales channels in China and India.

As part of its medium- to long-term strategy, the company plans to fully enter the smartwatch market. Building on its existing precision timekeeping technology, it will develop next-generation wearable devices integrating health monitoring and mobile payment functions. A trial product launch in specific markets is scheduled for the 2026 fiscal year.

Additionally, the company will accelerate efforts to enhance supply chain transparency and increase the use of renewable energy. It aims to source 100% of energy from renewable sources across all production sites by 2030, advancing a concrete roadmap toward carbon neutrality.

In terms of human resources, the company is promoting diversity and inclusion while actively recruiting digital talent. Special emphasis is placed on acquiring personnel skilled in AI and data analytics to strengthen its R&D division. The overseas assignment program for young employees will also be expanded to accelerate the development of global talent.

Regarding shareholder returns, the company will continue stable dividends and consider flexible implementation of share buybacks. With a strengthened financial foundation, it aims to enhance long-term shareholder value.