Watches
Here we outline our four businesses, through which we contribute widely to the lives of people around the world.
Machine tools
Citizen began production of machine tools in 1936, utilizing the technologies and know-how developed through the manufacture of watch parts. Our products contribute to the development of manufacturing industries all over the world.
Corporate Philosophy
Loved by citizens, working for citizens.
CITIZEN's corporate philosophy, "Loved by citizens, working for citizens" is to
deeply contribute to the lives of people around the world through the manufacturing of products that are loved and trusted by citizens.
Message From President & CEO
Crafting a new tomorrow Towards sustainable value creation
IR Library
CITIZEN REPORT(Integrated Report)
Top Management
By further promoting sustainable management, we aim to become a company that can create value sustainably
Sustainability Management
CITIZEN Group’s Sustainable Management
- TOP
- Investor Relations
- Corporate Governance
Corporate Governance
Our corporate governance vision
The Company’s corporate philosophy is “Loved by citizens, working for citizens,” and it derives its name from this. The Company works to contribute to society and increase its corporate value through sustainable corporate activities, in harmony with the local community and the global environment. To continue to promote its aims, the Company believes that it is important to secure transparency in management and monitor many fields of management. Accordingly, the Company is striving to expand and improve its corporate governance.
System for corporate governance
The Company establishes the corporate governance system described below based on the judgment that it can ensure the proper and efficient execution of duties together with management transparency, while also enabling extensive management oversight.
( 1 ) Organs and organizations
| Organs and Organization Name | Members | Supplementary Explanation |
| The Board of Directors | 5 Directors 5 Outside Directors |
The Company has elected to operate as a company with Audit & Supervisory Committee. The Board of Directors of the Company consists of four Directors (excluding Directors who are Audit & Supervisory Committee members) who preside over the corporate group and execute major business operations, three Outside Directors (excluding Directors who are Audit & Supervisory Committee members) who check and oversee management from an independent standpoint, leveraging abundant experience as corporate managers and broad insight, and three Audit & Supervisory Committee members, including two Outside Directors, who have extensive knowledge of and broad insight into corporate legal affairs, accounting, etc. The Company conducts audits by establishing Audit & Supervisory Committee whose members are these three Audit & Supervisory Committee members. |
| Organs and Organization NameThe Board of Directors | Members5 Directors 5 Outside Directors | Supplementary ExplanationThe Company has elected to operate as a company with Audit & Supervisory Committee. The Board of Directors of the Company consists of four Directors (excluding Directors who are Audit & Supervisory Committee members) who preside over the corporate group and execute major business operations, three Outside Directors (excluding Directors who are Audit & Supervisory Committee members) who check and oversee management from an independent standpoint, leveraging abundant experience as corporate managers and broad insight, and three Audit & Supervisory Committee members, including two Outside Directors, who have extensive knowledge of and broad insight into corporate legal affairs, accounting, etc. The Company conducts audits by establishing Audit & Supervisory Committee whose members are these three Audit & Supervisory Committee members. |
| Company with an Audit & Supervisory Committee | 1 Audit & Supervisory Board Member 2 Outside Audit & Supervisory Board Members |
Each Audit & Supervisory Board Member conducts strict audits on the Directors’ performance of their duties, in accordance with the audit policy and audit program stipulated by the Audit & Supervisory Board, by attending the Board of Directors meetings, Management Committee meetings, division meetings, or other such meetings; receiving from the Directors and other officers reports on the status of the performance of their duties; reviewing important written decisions and other documents; and investigating the business and financial status of the Company. The Company also receives a financial audit report from Nihombashi Corporation, which is an Independent Auditor. The Company conducts effective audits on itself and its subsidiaries in collaboration with the Independent Auditor, and is working on the further expansion and improvement of corporate governance. |
| Organs and Organization NameCompany with an Audit & Supervisory Committee | Members1 Audit & Supervisory Board Member 2 Outside Audit & Supervisory Board Members |
Supplementary ExplanationEach Audit & Supervisory Board Member conducts strict audits on the Directors’ performance of their duties, in accordance with the audit policy and audit program stipulated by the Audit & Supervisory Board, by attending the Board of Directors meetings, Management Committee meetings, division meetings, or other such meetings; receiving from the Directors and other officers reports on the status of the performance of their duties; reviewing important written decisions and other documents; and investigating the business and financial status of the Company. The Company also receives a financial audit report from Nihombashi Corporation, which is an Independent Auditor. The Company conducts effective audits on itself and its subsidiaries in collaboration with the Independent Auditor, and is working on the further expansion and improvement of corporate governance. |
| Management Committee meetings | Directors(Full-time) Audit & Supervisory Board Members |
The Company holds Management Committee meetings that are attended by the full-time Directors and full-time Audit & Supervisory Board Members to maintain prompt business judgment and management transparency. Matters to be resolved at the Board of Directors meetings and other important managerial issues are fully discussed and deliberated in advance at these meetings. |
| Organs and Organization NameManagement Committee meetings | MembersDirectors(Full-time) Audit & Supervisory Board Members |
Supplementary ExplanationThe Company holds Management Committee meetings that are attended by the full-time Directors and full-time Audit & Supervisory Board Members to maintain prompt business judgment and management transparency. Matters to be resolved at the Board of Directors meetings and other important managerial issues are fully discussed and deliberated in advance at these meetings. |
| Independent Auditors | 5 certified public accountants （Supplementary Explanation） |
With respect to the financial audits, the certified public accountants who independently audited the Company are Mr. Tatsuya Oritoya and Mr. Shigehiro Chiba, associates of Nihombashi Corporation. In addition, seven (9) certified public accountants, eight (4) successful candidates who have passed the Certified Public Accountants Examination, etc. assisted in the audit of the Company. The Company ensures fairness and independence while it is audited by the Independent Auditors. |
| Organs and Organization NameIndependent Auditors | Members5 certified public accountants （Supplementary Explanation） |
With respect to the financial audits, the certified public accountants who independently audited the Company are Mr. Tatsuya Oritoya and Mr. Shigehiro Chiba, associates of Nihombashi Corporation. In addition, seven (9) certified public accountants, eight (4) successful candidates who have passed the Certified Public Accountants Examination, etc. assisted in the audit of the Company. The Company ensures fairness and independence while it is audited by the Independent Auditors. |
| Nomination Committee | The Chairperson : Outside Director Member composition : 3 or more Directors |
The main duties of the Nomination Committee include discussions on matters concerning the appointment or removal of the Representative Director, the President and CEO, and the Chairman of the Board of Directors, and proposals of such matters to the Board of Directors. Committees is composed of three (3) or more Directors who are appointed by a resolution of the Board of Directors, the majority of which are Outside Directors and which shall include at least one (1) Representative Director. The Chairperson of each of the Committees shall be an Outside Director, and shall be elected by mutual election of the members of the Committees. |
| Organs and Organization NameNomination Committee | MembersThe Chairperson : Outside Director Member composition : 3 or more Directors |
Supplementary ExplanationThe main duties of the Nomination Committee include discussions on matters concerning the appointment or removal of the Representative Director, the President and CEO, and the Chairman of the Board of Directors, and proposals of such matters to the Board of Directors. Committees is composed of three (3) or more Directors who are appointed by a resolution of the Board of Directors, the majority of which are Outside Directors and which shall include at least one (1) Representative Director. The Chairperson of each of the Committees shall be an Outside Director, and shall be elected by mutual election of the members of the Committees. |
| Compensation Committee | The Chairperson : Outside Director Member composition : 3 or more Directors |
The main duties of the Compensation Committee include discussions on matters concerning the policies and standards of the compensation to be received by Directors, and the provision of advice concerning the same to the Board of Directors. Committees is composed of three (3) or more Directors who are appointed by a resolution of the Board of Directors, the majority of which are Outside Directors and which shall include at least one (1) Representative Director. The Chairperson of each of the Committees shall be an Outside Director, and shall be elected by mutual election of the members of the Committees. |
| Organs and Organization NameCompensation Committee | MembersThe Chairperson : Outside Director Member composition : 3 or more Directors |
Supplementary ExplanationThe main duties of the Compensation Committee include discussions on matters concerning the policies and standards of the compensation to be received by Directors, and the provision of advice concerning the same to the Board of Directors. Committees is composed of three (3) or more Directors who are appointed by a resolution of the Board of Directors, the majority of which are Outside Directors and which shall include at least one (1) Representative Director. The Chairperson of each of the Committees shall be an Outside Director, and shall be elected by mutual election of the members of the Committees. |
| Internal Audit Dept. | 8 Dept. members | The Company has established the Internal Audit Department as an internal audit division and conducts audits in accordance with an annual audit plan to confirm that the business execution of the Company and its subsidiaries is appropriate and reasonable.The auditing organizations, the internal audit division, and the internal control division communicate closely. |
| Organs and Organization NameInternal Audit Dept. | Members8 Dept. members | Supplementary ExplanationThe Company has established the Internal Audit Department as an internal audit division and conducts audits in accordance with an annual audit plan to confirm that the business execution of the Company and its subsidiaries is appropriate and reasonable.The auditing organizations, the internal audit division, and the internal control division communicate closely. |
（2）Relationship with outside officers
There are no special interests between the Company and either of Ms. Toshiko Kuboki, Mr. Yoshio Osawa, Mr. Katsuhiko Yoshida, Ms.Yaeko Ishida and Ms. Noriko Yamanaka who are Outside Directors, and the Company believes that each of the above persons is an independent officer who does not generate a conflict of interest with general shareholders.
(Criteria on Independence of Outside Officers)
The Company deems that an Outside Director or Outside Audit & Supervisory Board Member of the Company (“Outside Officer”) or a candidate for Outside Officer possesses independence such that the interests of the Outside Officer or candidate for Outside Officer are unlikely to have conflict with the interests of general shareholders if, after the Company investigates to practically possible and reasonable extent, one or more of the following criteria do not apply with respect to the said individual.
(1) A party who is now or was previously an officer (excluding the Company’s Outside Director or Outside Audit & Supervisory Board Member) or an employee of the Citizen Group (the “Citizen Group” refers to the group of companies made up of the Company and its subsidiaries; hereinafter the same).
(2) A party whose major business partner is the Company (Note 1) or an executive of such party (“executive” refers to an executive as defined in Article 2, paragraph 3, item 6 of the Enforcement Regulations of the Companies Act (Order of the Ministry of Justice No. 12 of 2006); hereinafter, the same).
(3) A major business partner of the Company (Note 2) or an executive of such party.
(4) A consultant, accounting professional, or legal professional who receives cash or other financial benefits of 10 million yen or higher as payment from the Citizen Group for reasons other than Director’s or Audit & Supervisory Board Member’s remuneration (if the party receiving such financial benefits is an incorporated entity, association or other organization, then a person belonging to such organization).
(5) A party receiving donations of cash or other financial benefits of 10 million yen or higher from the Citizen Group (if the party receiving such donation is an incorporated entity, association or other organization, then a person belonging to such organization).
(6) A party directly or indirectly holding 10% or more of the total number of voting rights held by the Company’s shareholders or an executive of such party.
(7) In the case that an officer or employee of the Citizen Group is serving as an outside officer at another company, an officer or employee of the company other than the aforementioned outside officer.
(8) A person to whom any of the criteria (2) through (7) applied in the most recent fiscal year or the past three fiscal years of the Company.
(9) A spouse or relative within the second degree of kinship of a person to whom any of the criteria (1) through (8) applies.
Notes:
1. “Party whose major business partner is the Company” refers to a party whose sales to the Citizen Group makes up 2% or more of the consolidated net sales of the party’s group (“group” refers to the group of companies made up of the party, its parent, and its subsidiaries; hereinafter the same).
2. “Major business partner of the Company” refers to a party whose group provides the Citizen Group with sales amounting to 2% or more of the consolidated net sales of the Company.
（3） Directors’ and Audit & Supervisory Board Members’ Compensation
| Business segment | Number of officers | Total amount of compensation, etc. （millions of yen） |
Amount of fixed compensation out of all compensation, etc. （millions of yen） |
Amount of bonus out of all compensation, etc. （millions of yen） |
Amount of performance-linked stock compensation out of all compensation, etc. （millions of yen） |
| Directors (excluding those who are Audit & Supervisory Committee Members) [Out of which, Outside Directors] |
9 （3） |
325 （37） |
177 （37） |
91 （-） |
56 （-） |
| Directors (excluding those who are Audit & Supervisory Committee Members) [Out of which, Outside Directors] |
Number of officers9 （3） |
Total amount of compensation, etc. （millions of yen）325 （37） |
Amount of fixed compensation out of all compensation, etc. （millions of yen）177 （37） |
Amount of bonus out of all compensation, etc. （millions of yen）91 （-） |
Amount of performance-linked stock compensation out of all compensation, etc. （millions of yen）56 （-） |
| Directors (Audit & Supervisory Committee Members) [Out of which, Outside Directors] |
3 （2） |
36 （18） |
36 （18） |
（-） （-） |
（-） （-） |
| Directors (Audit & Supervisory Committee Members) [Out of which, Outside Directors] |
Number of officers3 （2） |
Total amount of compensation, etc. （millions of yen）36 （18） |
Amount of fixed compensation out of all compensation, etc. （millions of yen）36 （18） |
Amount of bonus out of all compensation, etc. （millions of yen）（-） （-） |
Amount of performance-linked stock compensation out of all compensation, etc. （millions of yen）（-） （-） |
| Audit & Supervisory Board Member [Out of which, Audit & Supervisory Board Members] |
3 （2） |
12 （7） |
12 （7） |
（-） （-） |
（-） （-） |
| Audit & Supervisory Board Member [Out of which, Audit & Supervisory Board Members] |
Number of officers3 （2） |
Total amount of compensation, etc. （millions of yen）12 （7） |
Amount of fixed compensation out of all compensation, etc. （millions of yen）12 （7） |
Amount of bonus out of all compensation, etc. （millions of yen）（-） （-） |
Amount of performance-linked stock compensation out of all compensation, etc. （millions of yen）（-） （-） |
| Total ［Out of which, outside officers］ |
15 （7） |
373 （63） |
225 （63） |
91 （-） |
56 （-） |
| Total［Out of which, outside officers］ | Number of officers15 （7） |
Total amount of compensation, etc. （millions of yen）373 （63） |
Amount of fixed compensation out of all compensation, etc. （millions of yen）225 （63） |
Amount of bonus out of all compensation, etc. （millions of yen）91 （-） |
Amount of performance-linked stock compensation out of all compensation, etc. （millions of yen）56 （-） |
Notes:
1. The above figures include Directors and Audit & Supervisory Board Members who retired upon conclusion of the 140th Ordinary General Meeting of Shareholders held on June 25, 2025.
2. The above amount of the bonuses (91 million yen) for Directors (excluding Outside Directors) is the amount to be paid after the conclusion of the 141st Ordinary General Meeting of Shareholders scheduled to be held on June 24, 2026.
3. The above amount of performance-linked stock compensation (56 million yen) for Directors (excluding those who are Audit & Supervisory Committee Members, Outside Directors and non-residents of Japan) is the amount that was recorded as an expense in the fiscal year under review.
4. In order to promote motivation in contributing to the enhancement of single-year and medium- to long-term performance and improvement of corporate value, the performance indicators for bonuses are consolidated net sales and consolidated operating profit in the annual plan in addition to consolidated net sales, consolidated operating profit ratio and ROE in the Medium-term Management Plan. Actual results during the fiscal year under review were consolidated net sales of 346.808 billion yen, consolidated operating profit ratio of 8.7% and ROE of 11.3%. Bonuses are calculated multiplying the base monthly compensation for each position by a coefficient determined by the level of achievement of performance indicators and nonfinancial items.
5. The content of performance-linked stock compensation is shares of the Company, and the conditions, etc. at the time of allotment are as stated in “(1) Policies, etc. on determination of officer compensation, etc.” Furthermore, the status of delivery is as stated - 36 - in “II. 1. (5) Status of shares delivered to officers of the Company as compensation for the performance of the duties during the fiscal year under review.” In order to further clarify the linkage between compensation for Directors and the share value of the Company to promote motivation in contributing to the enhancement of medium- to long-term performance and improvement of corporate value, the performance indicators for performance-linked stock compensation are consolidated net sales, consolidated operating profit ratio, ROE, CO2 reduction rate (compared to 2018), a FTSE Russell ESG Ratings score, and ratio of sustainable products to total sales in the Medium-term Management Plan. Actual results during the fiscal year under review were consolidated net sales of 346.808 billion yen, consolidated operating profit ratio of 8.7% and ROE of 11.3%, CO2 reduction rate (compared to 2018) of 47.1%, an FTSE Russell ESG Ratings score of 4.2, and a ratio of sustainable products to total sales of 27.8%. Performance-linked stock compensation is calculated according to the level of achievement of performance indicators, etc.
6. The maximum allowance for the total amount of compensation, etc. for Directors (excluding Outside Directors) prior to the transition to a company with an Audit & Supervisory Committee was set at 370 million yen per year (inclusive of bonuses, etc.) at the 133rd Ordinary General Meeting of Shareholders held on June 27, 2018, and the number of Directors (excluding Outside Directors) at the conclusion of that Ordinary General Meeting of Shareholders was eight (8). Employee salaries for employees who also serve as Directors shall not be paid.
7. Separate from note 6 above, at the 133rd Ordinary General Meeting of Shareholders held on June 27, 2018, the total amount of performance-linked stock compensation for Directors (excluding Outside Directors and Directors who are non-residents of Japan) prior to the transition to a company with an Audit & Supervisory Committee was set at not more than 300 million yen for every three fiscal years (starting in 2018, the first year, at not more than 100 million yen), and the number of Directors (excluding Outside Directors and Directors who are non-residents of Japan) at the conclusion of that Ordinary General Meeting of Shareholders was eight (8)
8. The maximum allowance for the total amount of compensation, etc. for Outside Directors prior to the transition to a company with an Audit & Supervisory Committee was set at 40 million yen per year at the 134th Ordinary General Meeting of Shareholders held on June 26, 2019, and the number of Outside Directors at the conclusion of that Ordinary General Meeting of Shareholders was three (3). No bonuses will be paid to Outside Directors.
9. The maximum allowance for the total amount of compensation, etc. for Directors (excluding those who are Audit & Supervisory Committee Members) after the transition to a company with an Audit & Supervisory Committee was set at 340 million yen per year (inclusive of bonuses, etc., including 70 million yen or less for Outside Directors) at the 140th Ordinary General Meeting of Shareholders held on June 25, 2025, and the number of Directors (excluding those who are Audit & Supervisory Committee Members) at the conclusion of that Ordinary General Meeting of Shareholders was seven (7) (including three (3) Outside Directors). Bonuses shall not be paid to Outside Directors. In addition, employee salaries for employees who also serve as Directors shall not be paid.
10. Separate from note 9 above, at the 140th Ordinary General Meeting of Shareholders held on June 25, 2025, the total amount of performance-linked stock compensation for Directors (excluding those who are Audit & Supervisory Committee Members, Outside Directors, and non-residents of Japan) after the transition to a company with an Audit & Supervisory Committee was set at not more than 180 million yen multiplied by the number of fiscal years of the covered period (for the initial covered period, it shall be 540 million yen in order to cover three fiscal years), and the number of Directors (excluding those who are Audit & Supervisory Committee Members, Outside Directors, and non-residents of Japan) at the conclusion of that Ordinary General Meeting of Shareholders was four (4).
11. The maximum allowance for the total amount of compensation, etc. for Directors who are Audit & Supervisory Committee Members was set at 70 million yen per year at the 140th Ordinary General Meeting of Shareholders held on June 25, 2025, and the number of Directors who are Audit & Supervisory Committee Members at the conclusion of that Ordinary General Meeting of Shareholders was three (3).
12. The maximum allowance for the total amount of compensation, etc. for Audit & Supervisory Board Members was set at 80 million yen per year at the 122nd Ordinary General Meeting of Shareholders held on June 26, 2007, and the number of Audit & Supervisory Board Members at the conclusion of that Ordinary General Meeting of Shareholders was three (3). No bonuses will be paid to Audit & Supervisory Board Members.
13. In order to increase transparency concerning the compensation of Directors (excluding those who are Audit & Supervisory Committee Members; the same applies in note 13.), the Company delegated the determination of the content of individual compensation, etc. of Directors for the fiscal year under review to the Compensation Committee chaired by Outside Director Mr. Katsuhiko Yoshida and with Outside Directors Ms. Toshiko Kuboki and Mr. Yoshio Osawa and President and CEO Mr. Yoshitaka Oji as members. The Compensation Committee found that the content of the individual compensation, etc. of Directors for the fiscal year under review is in line with the Policy on Determination of the Content of Individual Compensation, etc. of Directors because the determination of the content was delegated to the Compensation Committee by resolution of the Board of Directors and the content of compensation, etc. conforms with said policy resolved by the Board of Directors.
（4）Implementation of Measures for Shareholders and Other Stakeholders
| Category | Measures | Supplementary Explanation |
| Categorythe General Shareholder Meetings and Voting Rights | Measures/Supplementary ExplanationEarly Notification of General Shareholder Meeting | Since 2006, the Company has endeavored to issue a notice at least three (3) weeks prior to the date of the General Meeting of Shareholders. Since 2016, the Company has made the notice available electronically upon passing the resolution for convening the General Meeting of Shareholders at the meeting of the Board of Directors until the issue of the convocation notice. |
| Scheduling AGMs Avoiding the Peak Day | Since 2006, the Company has endeavored to hold the meeting at least one (1) business day before the peak day. | |
| Allowing Electronic Exercise of Voting Rights | The Company has adopted the online exercise of voting rights via personal computer or mobile phone. | |
| Participation in Electronic Voting Platform | Since 2007, the Company has participated in the platform for the electronic exercise of voting rights for institutional investors. | |
| Providing Convocation Notice in English | The convocation notice is made available in English. | |
| Other | The convocation notice is made available on the Company’s homepage. | |
| CategoryIR | Measures/Supplementary ExplanationPreparation and Publication of Policies on Disclosure | The Company has established the Policies on Disclosure and posts them on the IR section of its website |
| Regular Investor Briefings for Individual Investors | The Company strengthens IR for individual investors, such as by disclosing latest financial results presentation without delay and the Company introduction movie on IR website. | |
| Regular Investor Briefings for Analysts and Institutional Investors | The representative provides briefings on the financial results for the second quarter and the full year. The officer in charge of IR provides briefings on the financial results for the first and third quarters. | |
| Posting of IR Materials on Website | The Company makes available a summary of accounts, financial results briefing materials, questions and answers at the briefings, the securities reports, the quarterly reports, CITIZEN REPORT (Integrated Report) and other documents. | |
| Establishment of Department and/or Manager in Charge of IR | The Company has established the office for public relations and IR and assigned three employees to it. | |
| CategoryRespect for Stakeholders | Measures/Supplementary ExplanationStipulation of Internal Rules for Respecting the Position of Stakeholders | The Company stipulates in the Citizen Group Code of Conduct that the positions of the stakeholders shall be respected. |
| Implementation of Environmental Activities, CSR Activities etc. | Information regarding environmental and social contribution activities is made available to the general public via the webpages, etc. of the Company. https://www.citizen.co.jp/global/sustainability/report/index.html https://www.citizen.co.jp/global/sustainability/index.html |
|
| Development of Policies on Information Provision to Stakeholders | The Company intends to improve the CSR initiatives through communication with all stakeholders. The Citizen Group Code of Conduct provides that “corporate information shall be disclosed actively and fairly and managed appropriately.” | |
| Other | The Company aims to create an environment that is easy to work in for all the employees, regardless of their attributes. To promote the active participation of women, the Company has formed a diversity project team. The Company also gives support to all employees so that they can show their ability to the fullest by encouraging tailored communication with them including regular meetings with employees who are raising a child or caring for a family member.The ratio of female managers at major Group companies is posted at Citizen Group ESG Data . |
（5）Adoption of Anti-Takeover Measures
The Company does not adopt anti-takeover measures.
As its name indicates, the Citizen Group’s mission is to provide citizens around the world with better products and services, and the Group has been working to secure and enhance its corporate value and the common interests of shareholders by being appreciated by citizens and working for the lives of people worldwide through manufacturing under its corporate philosophy “Loved by citizens, working for citizens.” The Company believes that the individuals who control the decisions on its financial and business policies must be able to steadily put into practice the Group’s business strategies from a medium- to long-term perspective based on the understanding of the Group’s corporate philosophy and business characteristics, and that they must make it possible for the Company to continue to secure and enhance its corporate value and the common interests of shareholders sustainably.
The Company believes that even if a large-scale purchase act is conducted against the Company, it should ultimately be left to the shareholders to decide whether or not the Company should accept it. The Company will not unconditionally deny a large-scale purchase act if it will contribute to the corporate value and the common interests of shareholders of the Company.
However, assuming that the legal system and the financial environment as of today’s date exist, a large-scale purchase act that will not contribute to the corporate value and the common interests of shareholders of the Company is also expected. A large-scale purchase act includes an act that will not sincerely aim for rational management given its purpose and method and will cause unrecoverable damage to the Company, an act that could virtually force the shareholders to sell their shares, an act that will not provide sufficient time and information for the shareholders and the board of directors of the target company to examine the conditions for the purchase or for the board of directors of the target company to present an alternative plan, and an act that will require negotiations with the purchaser for the target company to achieve more advantageous conditions than those presented by the purchaser.
The Company believes that those who conduct a large-scale purchase act such as that described above are not appropriate to control decisions on the Company’s financial and business policies. Accordingly, the Company will take appropriate measures based on the Financial Instruments and Exchange Act, the Companies Act and other related laws and regulations to secure its corporate value and the common interests of shareholders, including making efforts to secure time and information for the shareholders to examine the large-scale purchase act by asking the person who is attempting to conduct the large-scale purchase act to provide necessary and sufficient information to enable the shareholders to make an appropriate judgment and disclosing the opinions of the Board of Directors to that person.
Sustainability Initiatives
The Citizen Group has set sustainable management as the Group vision based on its Corporate Philosophy of “Loved by citizens, working for citizens.” The Sustainability Committee, which is chaired by the Company’s President and CEO, is in charge of promoting sustainable management. The Company has also evaluated the level of impact of its business activities on social issues and identified five material issues, for which priorities were set. It also discloses a roadmap for the period through 2030 toward solution of social issues.
In its businesses, the Company takes steps to realize sustainable factories by ensuring its production facilities have been set up to reflect consideration for the business process across the entire value chain. By doing so, the Company is able to create sustainable products, whereby all products and services reflect not only the Company’s longstanding consideration for the environment but also consideration for social issues such as avoiding human rights abuses in the production and procurement of raw materials, which could come about if conflict minerals were involved.
Regarding human capital, the Company pursue numerous related initiatives to work on its management strategies and issues, based on its understanding that it is people that form the foundation of a company’s competitiveness. In its recruitment activities, the Company emphasizes industry-ready human resources, including mid-career employees, aiming to strengthen e-commerce and digital marketing and advance strategies for priority regions, including the promising Asian market. Regarding the deployment and development of human resources, the Company conducts talent management, thereby checking the experience and skills of each employee and providing training needed to fill in gaps in its human resource portfolio. With regard to employee engagement, the Company began to conduct an annual employee awareness survey in 2016 to learn more about its employees and takes countermeasures as needed.
Concerning intellectual property, the Company has been focusing its efforts on activities for protecting its businesses. Concerning intellectual property, the Company has been focusing its efforts on activities for protecting its businesses. Specifically, the Company will integrate its intellectual property information with market and business information, thereby enhancing the strategic use of intellectual property information with the aim of contributing more effectively to the planning and implementation of management (business) strategies and eventually to improving its corporate value.
Further, to help solve the climate change problem, a global issue, the Company has established the CITIZEN Group Environmental Vision 2050 and CITIZEN Group Environmental Goals 2030 based on the CITIZEN Group Environmental Policy, aiming to achieve virtually zero CO2 emissions from its factories and offices.
To reach that environmental goal, the CITIZEN Group announced its approval to a proposal for the Task Force on Climate-Related Financial Disclosures (TCFD) in FY 2020. It also identified and assessed risks and opportunities related to climate change, using two scenarios of different assumptions of future temperature rises (2°C scenario and 4°C scenario) as requested by the TCFD proposal. For risks that have been identified, CO2 reduction and environmental consideration in products will be promoted with an eye to reducing the risk of the 4°C scenario in which temperature rise progresses and making the 2°C scenario, in which targets internationally promised are achieved, come true.
Further, to advance environmentally friendly management as an opportunity common to the two scenarios, the Company is switching to using 100% electricity from renewable energy sources at Tokyo Works and Tokorozawa Works, and installing solar power generation facilities at its domestic and overseas factories, among other measures, in addition to continuing existing energy-saving activities.
The Company’s greenhouse gas emission reduction target for 2030, the CITIZEN Group Environmental Goals 2030, has been recognized by the SBT Initiative as a scientifically based level to achieve the Paris Agreement, and SBT certification was obtained.
Policy for cross-shareholdings & Standard for voting cross-shareholdings
（1）Policy for cross-shareholdings
The Company will have cross-shareholdings if it judges, after comprehensive consideration, that they will contribute to maintaining and strengthening the business relations of the Citizen Group in the medium to long term as well as the smooth management of the business operations of the Company and the development of the business. The basic policy for the verification of individual cross-shareholdings is that their rationality and necessity will be examined at a meeting of the Board of Directors each year in light of relationships between business partners and the Group and the possibility of mutually enhancing the corporate value and that the scale of shareholdings will be reduced if the significance of continuing to hold the shares has diluted.
（2）Standard for voting cross-shareholdings
With respect to the standards for the exercise of the voting rights, the Company will make a judgement on the exercise of the voting rights according to the standard of the contribution to the business of the Group in the medium to long term.
Stock Holding (As of March 31, 2026)
（1）Of all stocks held, the number of issues of stocks acquired for purposes other than genuine investment and the total amount of such investments on the balance sheet
23 issues JPY 31,067 Million
（2）Categories, main issues, number, amount on the balance sheet, and investment purpose of stocks acquired purposes other than genuine investment
| Issue | FY2025 | FY2024 | Investment purpose | The company's shares hold |
|---|---|---|---|---|
| Number of stocks (stocks) | Number of stocks (stocks) | |||
| Amount on the balance sheet (Million yen) |
Amount on the balance sheet (Million yen) |
|||
| MARUBENI CORPORATION |
2,134,000 | 2,134,000 | We own the company’s shares to facilitate the business activities of our Machine Tools business segment. We own a joint venture with the company to expand sales in the Americas. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 11,988 | 5,077 | |||
| Issue | MARUBENI CORPORATION |
|||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 2,134,000 | 11,988 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 2,134,000 | 5,077 | |||
| We own the company’s shares to facilitate the business activities of our Machine Tools business segment. We own a joint venture with the company to expand sales in the Americas. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| MITSUBISHI UFJ FINANCIAL GROUP, INC. | 894,200 | 894,200 | We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 2,324 | 1,798 | |||
| Issue | MITSUBISHI UFJ FINANCIAL GROUP, INC. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 894,200 | 2,324 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 894,200 | 1,798 | |||
| We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| RHYTHM CO., LTD. | 597,181 | 597,181 | We own the company’s shares to facilitate the business activities of our Watches business segment. We established a license tie-up with the company regarding the use of the CITIZEN trademark. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 2,090 | 2,218 | |||
| Issue | RHYTHM CO., LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 597,181 | 2,090 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 597,181 | 2,218 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We established a license tie-up with the company regarding the use of the CITIZEN trademark. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| RYODEN CORPORATION | 414,900 | 414,900 | We own the company’s shares to facilitate the business activities of our Machine Tools business segment and Devices and Components business segment. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 1,358 | 1,042 | |||
| Issue | RYODEN CORPORATION | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 414,900 | 1,358 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 414,900 | 1,042 | |||
| We own the company’s shares to facilitate the business activities of our Machine Tools business segment and Devices and Components business segment. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| MIZUHO FINANCIAL GROUP, INC. | 202,665 | 202,665 | We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 1,233 | 820 | |||
| Issue | MIZUHO FINANCIAL GROUP, INC. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 202,665 | 1,233 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 202,665 | 820 | |||
| We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| DAI NIPPON PRINTING CO., LTD. | 223,000 | 223,000 | We own the company’s shares to facilitate the business activities of our Electronic and Other Products business segment. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 630 | 472 | |||
| Issue | DAI NIPPON PRINTING CO., LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 223,000 | 630 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 223,000 | 472 | |||
| We own the company’s shares to facilitate the business activities of our Electronic and Other Products business segment. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| JAPAN PURE CHEMICAL CO.,LTD. | 116,800 | 116,800 | We own the company’s shares to facilitate the business activities of our Watches business segment. We procure from the company plating chemicals that are used for watch components. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 539 | 363 | |||
| Issue | JAPAN PURE CHEMICAL CO.,LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 116,800 | 539 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 116,800 | 363 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We procure from the company plating chemicals that are used for watch components. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| NATIONAL ELECTRONICS HOLDINGS LTD. | 44,921,250 | 44,921,250 | We own the company’s shares to facilitate the business activities of our Watches business segment. We sell movements to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | None |
| 361 | 349 | |||
| Issue | NATIONAL ELECTRONICS HOLDINGS LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 44,921,250 | 361 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 44,921,250 | 349 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We sell movements to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | None | |||
| MARUI GROUP CO., LTD. | 96,113 | 96,113 | We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | None |
| 293 | 259 | |||
| Issue | MARUI GROUP CO., LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 96,113 | 293 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 96,113 | 259 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | None | |||
| THE HACHIJUNI BANK,LTD. | 124,000 | 124,000 | We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 238 | 130 | |||
| Issue | THE HACHIJUNI BANK,LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 124,000 | 238 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 124,000 | 130 | |||
| We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| SHINKO SHOJI CO.,LTD. | 153,800 | 153,800 | We own the company’s shares to facilitate the business activities of our Devices and Components business segment. We engage primarily in the sale of LEDs and the procurement of electronic parts with the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 192 | 138 | |||
| Issue | SHINKO SHOJI CO.,LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 153,800 | 192 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 153,800 | 138 | |||
| We own the company’s shares to facilitate the business activities of our Devices and Components business segment. We engage primarily in the sale of LEDs and the procurement of electronic parts with the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| SUMITOMO MITSUI FINANCIAL GROUP, INC. | 36,687 | 36,687 | We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | None |
| 183 | 139 | |||
| Issue | SUMITOMO MITSUI FINANCIAL GROUP, INC. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 36,687 | 183 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 36,687 | 139 | |||
| We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | None | |||
| ISETAN MITSUKOSHI HOLDINGS LTD. | 46,871 | 45,969 | We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. The increase in the number of shares during the fiscal year under review is the result of appropriating dividends from the shareholding association of the business partner. | None |
| 133 | 98 | |||
| Issue | ISETAN MITSUKOSHI HOLDINGS LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 46,871 | 133 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 45,969 | 98 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. The increase in the number of shares during the fiscal year under review is the result of appropriating dividends from the shareholding association of the business partner. | ||||
| The company's shares hold | None | |||
| J. FRONT RETAILING Co., Ltd. | 26,316 | 25,717 | We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. The increase in the number of shares during the fiscal year under review is the result of appropriating dividends from the shareholding association of the business partner. | None |
| 63 | 47 | |||
| Issue | J. FRONT RETAILING Co., Ltd. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 26,316 | 63 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 25,717 | 47 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. The increase in the number of shares during the fiscal year under review is the result of appropriating dividends from the shareholding association of the business partner. | ||||
| The company's shares hold | None | |||
| BICCAMERA INC. | 20,000 | 20,000 | We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | None |
| 34 | 31 | |||
| Issue | BICCAMERA INC. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 20,000 | 34 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 20,000 | 31 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | None | |||
| JOSHIN DENKI CO.,LTD. | 10,000 | 10,000 | We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | None |
| 28 | 21 | |||
| Issue | JOSHIN DENKI CO.,LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 10,000 | 28 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 10,000 | 21 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with the company in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | None | |||
| NIPPON BS BROADCASTING CORPORATION. | 16,000 | 16,000 | We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with BicCamera Inc., the parent company, in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | None |
| 14 | 14 | |||
| Issue | NIPPON BS BROADCASTING CORPORATION. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 16,000 | 14 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 16,000 | 14 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We seek to strengthen relationships with BicCamera Inc., the parent company, in the sale of wrist watches. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | None | |||
| THE YAMANASHI CHUO BANK, LTD. | 655 | 655 | We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | Yes |
| 3 | 1 | |||
| Issue | THE YAMANASHI CHUO BANK, LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 655 | 3 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 655 | 1 | |||
| We own the company’s shares to facilitate the operation of all our businesses. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | Yes | |||
| ASIA COMMERCIAL HOLDINGS LTD. | 111,750 | 111,750 | We own the company’s shares to facilitate the business activities of our Watches business segment. We sell movements to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | None |
| 0 | 0 | |||
| Issue | ASIA COMMERCIAL HOLDINGS LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 111,750 | 0 | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 111,750 | 0 | |||
| We own the company’s shares to facilitate the business activities of our Watches business segment. We sell movements to the company. We own the shares based on our comprehensive judgment that they will contribute to the medium- to long-term maintenance and strengthening of our business relationship with the company and the smooth operation of our businesses and business development in light of the cost of capital, in addition to dividends and the amount of transactions. While the quantitative effect of ownership is not stated because of our judgment that it is a trade secret with the business partner, we have decided that there is a sufficient quantitative effect based on the policy above. | ||||
| The company's shares hold | None | |||
| MITSUBISHI ELECTRIC CORPORATION | ー | 2,542,400 | We previously owned the company's shares to facilitate the business activities of our Machine Tools business segment. However, we sold all of them in the current fiscal year because the significance of holding these shares has become diluted. | Yes |
| ー | 6,915 | |||
| Issue | MITSUBISHI ELECTRIC CORPORATION | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| ー | ー | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 2,542,400 | 6,915 | |||
| We previously owned the company's shares to facilitate the business activities of our Machine Tools business segment. However, we sold all of them in the current fiscal year because the significance of holding these shares has become diluted. | ||||
| The company's shares hold | Yes | |||
| STAR MICRONICS CO., LTD. | ー | 100,000 | We previously owned the company's shares to facilitate the business activities of our Watches business segment. In the current fiscal year, however, the company received a takeover bid (TOB), and it recommended that we accept the TOB. Accordingly, we sold all of the company's shares that we owned. | Yes |
| ー | 193 | |||
| Issue | STAR MICRONICS CO., LTD. | |||
| FY2025 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| ー | ー | |||
| FY2024 | Number of stocks (stocks) | Amount on the balance sheet(Million yen) | ||
| 100,000 | 193 | |||
| We previously owned the company's shares to facilitate the business activities of our Watches business segment. In the current fiscal year, however, the company received a takeover bid (TOB), and it recommended that we accept the TOB. Accordingly, we sold all of the company's shares that we owned. | ||||
| The company's shares hold | Yes | |||
(Note)1. "-" indicates that the Company does not hold the issue.