Selection and concentration of products and businesses

「In addition, under the new medium-term management plan, we are optimizing the business portfolio and managing the business appropriately in order to focus on improving profit margins and capital efficiency. Accordingly, from the current interim consolidated accounting period, we have changed the reportable segments to “Watch Business,” “Machine Tools Business” and “Device Business.”」

「The device and Other Businesses will pursue selection and concentration in businesses and products while targeting stable growth. We will also continue exploring new business areas with growth potential.」

「Operating profit increased to ¥10.3 billion, compared with an operating loss of ¥3.8 billion in the same period of the previous year, due mainly to the recovery in sales in overseas markets and the effects of the business structural reforms implemented in fiscal 2020.」

「Operating profit increased to ¥1.4 billion, compared with an operating loss of ¥3.8 billion in the same period of the previous year, due mainly to the recovery in sales in overseas markets and the effects of the business structural reforms implemented in fiscal 2020.」

「Although the company advanced initiatives to improve profitability, including structural reforms involving the selection and concentration of products, it recorded an operating loss of ¥700 million, compared with operating profit of ¥1.2 billion in the same period of the previous year.」

「Although the company advanced initiatives to improve profitability, including structural reforms involving the selection and concentration of products, it recorded an operating loss of ¥1.0 billion, compared with operating profit of ¥700 million in the same period of the previous year.」

「The device business recorded lower revenue of ¥10.4 billion, down 28.1% year on year. Although the company advanced initiatives to improve profitability, including structural reforms and the selection and concentration of products, the business recorded an operating loss of ¥700 million, compared with operating profit of ¥300 million in the same period of the previous year.」

「In the device business, we will improve profitability by selecting and concentrating on products in line with market changes and consolidating production sites, while expanding in areas where we can maximize our strengths to establish a firm competitive advantage. In the Other Businesses, we will carefully identify the strengths of the Group, select and concentrate on businesses and products, and seek to secure stable profits through improved production efficiency and rationalization.」

「In the Citizen Group Medium-Term Management Plan 2021 formulated in February 2019, the Group set out the selection and concentration of businesses and products in its device and Other Businesses. Based on this policy, as part of its structural reforms, the Board of Directors resolved at its meeting held on 26 December 2019 to liquidate a consolidated subsidiary and solicit applications for voluntary retirement from employees of domestic consolidated subsidiaries.」

「As no improvement in profitability was expected for large dot-matrix printers, the company decided to withdraw from the business at the end of the current fiscal year.」

「The Other Businesses segment as a whole recorded lower revenue, also affected by the decline in sales associated with the withdrawal from the ball machine equipment business.」

「The company withdrew from the ball machine equipment business, which had become unprofitable and was not expected to recover.」

「During the first 3-year period, from the fiscal year ended March 2014 through the fiscal year ended March 2016, the company clarified its business portfolio. During the latter 3-year period, from the fiscal year ended March 2017 through the fiscal year ended March 2019, it will pursue selection and concentration in the businesses and products operated by Group companies and clarify the businesses and products it will prioritize.」

「The Other Businesses segment as a whole returned to operating profitability as the loss-making ball machine equipment business, which had continued to post losses, was scaled back.」

「Sales in the Other Businesses segment as a whole declined, partly due to reduced sales as the ball machine equipment business was scaled back in preparation for withdrawal.」

「During the latter 3-year period, from the fiscal year ended March 2017 through the fiscal year ended March 2019, the company will pursue selection and concentration in the businesses and products operated by Group companies and clarify the businesses and products it will prioritize.」