SEIKO GROUP CORPORATION Consolidated Results for the 3 months
(from April 1 to June 30, 2023)
August 9, 2023
Net Sales and Operating Profit by Domain
- Both net sales and operating profit increased in the two strategic domains of EVS and SS. However, due to a decline in operating profit in the DS, the consolidated result was an increase in net sales and a decrease in operating profit.
EVS: Emotional Value Solutions Domain
DS: Devices Solutions Domain
SS: Systems Solutions Domain
Net Sales | Operating Profit | |||||||||||||
(Billions of yen) | FY2022 3M | FY2023 3M | Variance | FY2022 3M | FY2023 3M | Variance | ||||||||
EVS | 39.0 | 42.3 | +3.2 | 2.4 | 3.4 | +1.0 | ||||||||
Watches Business | Watches Business | |||||||||||||
33.9 | 36.5 | +2.6 | 2.6 | 3.5 | +0.8 | |||||||||
DS | 16.5 | 13.9 | -2.6 | 1.7 | 0.1 | -1.6 | ||||||||
SS | 9.1 | 9.3 | +0.1 | 0.9 | 1.0 | +0.0 | ||||||||
Others | 0.2 | 0.2 | +0.0 | 0.0 | 0.0 | +0.0 | ||||||||
Cons. Adj. | -2.8 | -2.8 | -0.0 | -2.1 | -1.9 | +0.1 | ||||||||
Cons. Total | 62.0 | 62.9 | +0.8 | 3.1 | 2.8 | -0.2 | ||||||||
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Business Environment
Positive | |
Economic Environment | |
factors | |
Market Environment |
Impact of the depreciation of the yen
Recovery trend in sales to inbound tourists
Economic recovery from COVID-19 in Japan
EVS Steady performance of overseas business
【Overseas net sales ratio】(Year-on-yearchanges)
EVS approx.50% (slight decrease)
EVS Watches and WAKO Business
EVS Watches and WAKO Business
- Business for food service industry
EVS | Strong performance of high-end watches and mid-priced- | |
range watches (Japan, Europe, and the U.S.) ★ | ||
DS | Glowth in micro batteries for medical equipment ★ | |
- Expansion in digital contracts, performance management, security, etc. ★
Energy costs remain high
EVS
DS
Overall business
EVS | Stagnation of Watch movements market due to economic | |
recession | ||
Risk of economic recession
*European, U.S., and Chinese economies
Negative
factors
EVS Mainly the Watches Business DS Business for Chinese market
DS | Stagnation in the market for components for data center | |
HDDs, etc. | ||
★MVP Products
High-added-value, highly profitable products that move people
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KPIs of SMILE145 (8th Mid-Term Management Plan)
MVP Ratio | GP% | Operating Profit | |||||||
FY2023 3M | (Changes from FY2022) | Year-on-year changes (3M) | Amount (FY2023 3M) | Year-on-year changes | |||||
Luxury domain and products with | approx.50% | (approx. +5pt) | |||||||
high emotional value, such as GB, | |||||||||
as % of net sales | + 2.9 | 3.4 | |||||||
EVS | Target for FY2026 | 60% | + 45.0% | ||||||
pt | billion yen | ||||||||
Watches Business | |||||||||
GB ratio Japan | approx.70％ | Overseas | approx.75％ | ||||||
(approx. +5pt） | (approx. +several points) | ||||||||
Target for FY2026 over 85% | |||||||||
DS | Sales to digital economy and | approx.50% | (approx. +10pt) | - 4.7pt | 0.1 billion yen | - 90.3% | |||
as % of net sales | |||||||||
green economy markets | |||||||||
Target for FY2026 | 60% | ||||||||
SS | Stock business | approx.70% | (approx. +5pt) | + 1.4 | 1.0 | + 10.1% | |||
as % of marginal profit | billion yen | ||||||||
pt | |||||||||
Target for FY2026 | 73% | ||||||||
Cons. | - | + 1.5 | 2.8 | - 9.1% | |||||
Total | pt | billion yen | |||||||
*Target for FY2026: +5.0pt | |||||||||
compared to FY2021 | |||||||||
(common to cons. total and each domain) |
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Financial Forecast for FY2023
- During the three-month period ended June 30, 2023, both net sales and operating profit increased year on year in the EVS Business, while both net sales and operating profit declined year on year in the DS Business.
- From the second quarter onward, we expect the EVS Business to continue to perform steadily. However, a recovery in the business environment for the DS Business will be delayed.
-
Accordingly, we have not changed our consolidated financial forecast (Net Sales: 268.0 billion yen,
Operating Profit: 12.0 billion yen), but we have revised our forecasted results by segment as described below.
(Billions of yen) | ||||||
Net Sales | Operating Profit | |||||
Previous | Current | Variance Previous Current Variance | ||||
Emotional Value Solutions Business | 175.0 | 177.0 | +2.0 | 13.0 | 14.0 | +1.0 |
Devices Solutions Business | 65.0 | 63.0 | -2.0 | 4.8 | 3.6 | -1.2 |
Systems Solutions Business | 39.0 | 39.0 | ±0.0 | 4.8 | 5.0 | +0.2 |
Total for reported segments | 279.0 | 279.0 | ±0.0 | 22.6 | 22.6 | ±0.0 |
Others | 1.0 | 1.0 | ±0.0 | 0.1 | 0.1 | ±0.0 |
Consolidated total | 268.0 | 268.0 | ±0.0 | 12.0 | 12.0 | ±0.0 |
*Consolidated total represents figures after consolidation adjustment such as the elimination of inter-segment sales.
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Seiko Holdings Corporation published this content on 18 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2023 12:09:07 UTC.
