08-31-12 citizen_rd_q1_2
TRANSCRIPT
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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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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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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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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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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)
Net sales +¥5.0B Operating income +¥1.3B
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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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
(billion yen) (billion yen)
1Q12 Results・2Q12 Forecast
1Q12 Results (Compared to 1Q11)
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
Net sales +¥1.7B Operating income +¥0.5B
(billion yen) (billion yen)
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
1H12 Forecast (Compared to 1H11)
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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
(billion yen) (billion yen)
1Q12 Results・2Q12 Forecast
1Q12 Results (Compared to 1Q11)
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
(billion yen) (billion yen)
FY12 Forecast
1H12 Forecast (Compared to 1H11)
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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)
1Q12 Results・2Q12 Forecast
1Q12 Results (Compared to 1Q11)
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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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
Operating incomeSales
Net sales ▲ ¥1.2B Operating income ▲ ¥0.3B
(billion yen) (billion yen)
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
1H12 Forecast (Compared to 1H11)
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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
(billion yen) (billion yen)
1Q12 Results・2Q12 Forecast
1Q12 Results (Compared to 1Q11)
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
Operating incomeSales
Net sales +¥0.3B Operating income +¥0.4B
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
1H12 Forecast (Compared to 1H11)
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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
FY07 FY08 FY09 FY10 FY11
Net cash flow
FY07 FY08 FY09 FY10 FY11
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
FY07 FY08 FY09 FY10 FY11
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
FY07 FY08 FY09 FY10 FY11
▲ 90
▲ 60
▲ 30
0
30
60
90
Net income
EPS(right axis)
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12.15.13.5
▲▲▲▲ 25.8
7.6
4.9%
▲▲▲▲12.3%
2.0%
2.7%3.9%
▲ 26
▲ 13
0
13
26
FY07 FY08 FY09 FY10 FY11
▲16%
▲8%
0%
8%
16%
Net income
ROE (right axis)
247.3
213.5
187.8 191.5 197.1
150
200
250
300
FY07 FY08 FY09 FY10 FY11
Shareholders equity
ROE
Supplementary
(billion yen)
(billion yen) ※average of the beginning and end of the term
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▲▲▲▲ 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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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