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.

Corporate Governance Report(PDF:185KB)

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 8 Directors(Full-time)
3 Outside Directors
The Board of Directors of the Company consists of eight (8) Directors who control the Group and execute business in major operations and three (3) Outside Directors who check and monitor business management by making the most of their extensive experience and broad insights as managers from an independent position.
The Board of Directors makes decisions about the performance of business and supervises these performances. Management of business operations is carried out by the Representative Director, the Directors in charge of operations and the Operating Officers. The Board of Directors meetings were held seventeen (17) times during the fiscal year under review, and all Directors and all Audit & Supervisory Board Members attended all of the Board of Directors meetings held during the fiscal year under review during the term of their office.
The Audit & Supervisory Board 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, the 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. Audit & Supervisory Board meetings were held thirteen (13) times during the fiscal year under review, and all Audit & Supervisory Board Members attended all of the Audit & Supervisory Board meetings held during the fiscal year under review during the term of their office.
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.
Independent Auditors 6 certified public accountants
(Supplementary Explanation)
With respect to the financial audits, the certified public accountants who independently audited the Company are Mr. Masahiko Kinoshita, Mr. Akira Ogura and Mr. Hidekazu Takahashi, associates of Nihombashi Corporation. In addition, six (6) certified public accountants, ten (10) 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. Whether to reappoint the Independent Auditors is deliberated and decided by the Audit & Supervisory Board. If the Board of Directors does not approve the reappointment of the Independent Auditors, such proposal will be deliberated on at the Ordinary General Meeting of Shareholders pursuant to the Companies Act.
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.
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.
Internal Audit Dept. 4 Dept. members The Company has established the Internal Audit Department and conducts audits in accordance with an annual audit program 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 closely communicate with each other.

Officer Lists

2.Relationship with outside officers

The Citizen Group has no special interest with Outside Directors, Mr. Fumiaki Terasaka and Ms. Toshiko Kuboki, and Outside Audit & Supervisory Board Members, Mr. Noboru Akatsuka and Ms. Yaeko Ishida.

(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

(Note) Of the resolutions on remuneration for officers of the Company made at the shareholders’ meeting, the resolution on the total amount of remuneration for Directors (excluding Outside Directors) was passed on June 27, 2018. It states that the annual amount is 370 million yen or less (including bonuses (excluding stock and share-based compensation)), and it was decided that no salary for employees will be paid to those Directors who are also employees of the Company. Apart from this, it was decided on the same day that the total amount of the performance-linked stock and share-based compensation for Directors (excluding Outside Directors and non-residents in Japan) would be 300 million yen or less for three fiscal years (100 million yen or less for one fiscal year when it would be initially set in 2018). The number of Directors (excluding Outside Directors) subject to these resolutions is eight. The resolution on the total amount of remuneration for Outside Directors was passed on June 26, 2019. It states that the annual amount is 40 million yen or less, and it was decided that no bonus will be paid to Outside Directors. The number of Outside Directors subject to this resolution is three. The resolution on the total amount of remuneration for Audit & Supervisory Board Members was passed on June 26, 2007. It states that the annual amount is 80 million yen or less, and it was decided that no bonus will be paid to Audit & Supervisory Board Members. The number of Audit & Supervisory Board Members subject to this resolution is three.

4.Implementation of Measures for Shareholders and Other Stakeholders

  
Category Measures Supplementary Explanation
the General Shareholder Meetings and Voting Rights Early 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.
IR Preparation 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, including holding investor briefings for individual investors.
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, annual reports 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.
Respect for Stakeholders Stipulation 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. The Company prepares an annual CSR report that includes a report on environmental activities and activities that contribute to society. This report is made widely available through the Company’s website and other channels.
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 CSR 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.

Enhancing Group Governance

The CITIZEN Group has established the Group Risk Management Committee to help achieve the Group’s operating objectives and continue its sustainable development through the integrated management of and timely response to risks.

The Group Risk Management Committee’s primary responsibilities are to identify and deal with key risks faced by the Group, and respond to new risks.

The President and CEO of the Company chairs the committee, which has established subcommittees for main risk themes. The officers in charge and risk management departments participate in these subcommittees. As a result, senior management is able to identify and address key risks including financial risk, compliance, business continuity planning, intellectual property, information security, labor practices, and ESG risks including those related to environmental issues. This system allows the Group to share risk management expertise and information on managing key risks common to all Group companies and risks specific to each Group company, enabling consistent risk management Group-wide.

The CITIZEN Group has newly established the Group Quality Compliance Committee in order to consider and formulate measures to strengthen quality compliance for the entire Group. The committee is chaired by the Director in charge of Group risk management and is composed of quality officers for each Group company. Its primary responsibility is to handle quality compliance risks. In addition, we regularly conduct training, education and audits on the newly formulated CITIZEN Group Quality Assurance Code of Conduct to improve awareness of quality compliance throughout the Group.

The CITIZEN Group will continue to make improvements to strengthen risk management Group-wide.

Ensuring Appropriate Conduct of Business by Subsidiaries

Based on rules and regulations for subsidiaries and affiliates, the Company manages and guides the development of management systems and internal control systems at its subsidiaries.

With regard to the individual business activities of the CITIZEN Group, the Company thoroughly disseminates the management policies and plans it has formulated, and clarifies the authority and responsibility of Group companies. Group companies are responsible for autonomous management based on the industry characteristics and other aspects of each business.

In addition, the Group shares information about and collaborates on key issues for Group businesses through meetings including Management Committee meetings and liaison conferences attended by Group companies.

Furthermore, subsidiaries are required to submit regular reports at Business Control and Management Committee  meetings and Watch Group Control Committee  meetings on the status of business conduct. The Audit Office also monitors subsidiaries through audits.

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, 2019)

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

37 issues JPY31,820Million

2.Categories, main issues, number, amount on the balance sheet, and investment purpose of stocks acquired purposes other than genuine investment

Issue Number of stocks(stocks) Amount on the balance sheet(Million yen) Investment purpose
Marubeni Corporation 5,134,000 3,927 We own the company’s shares to facilitate the business activities of our Machine Tools 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. 
NIKON CORPORATION 2,105,300 3,286 We own the company’s shares to facilitate the business activities of our 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. 
Mitsubishi Electric Corporation 2,183,000 3,105 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. 
Hulic Co., Ltd. 1,776,500 1,929 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. 
BROTHER INDUSTRIES, LTD. 891,300 1,825 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. 
SHIMIZU CORPORATION 1,259,000 1,211 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. 
Tokio Marine Holdings, Inc. 196,875 1,055 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. 
RHYTHM WATCH CO., LTD. 597,181 798 We own the company’s shares to facilitate the business activities of our Watches 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. 
Mitsubishi UFJ Financial Group, Inc. 1,426,000 784 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. 
NATIONAL ELECTRONICS HOLDINGS LTD. 44,921,250 762 We own the company’s shares to facilitate the business activities of our Watches 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. 
Tamron Co., Ltd. 300,000 605 We own the company’s shares to facilitate the business activities of our Machine Tools 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. 
Ryoden Corporation 290,000 425 We own the company’s shares to facilitate the business activities of our Machine Tools 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. 
Showa Denko K.K. 100,000 389 We own the company’s shares to facilitate the business activities of our 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. 
Olympus Corporation 73,000 350 We own the company’s shares to facilitate the business activities of our 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. 
Mizuho Financial Group, Inc. 2,026,650 347 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. 
Dai Nippon Printing Co., Ltd. 111,500 295 We own the company’s shares to facilitate the business activities of our Machine Tools 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. 
JAPAN PURE CHEMICAL CO.,LTD. 116,800 277 We own the company’s shares to facilitate the business activities of our Watches 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. 
EXCEL CO., LTD. 100,000 234 We own the company’s shares to facilitate the business activities of our Watches 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. 
MARUI GROUP CO., LTD. 96,113 214 We own the company’s shares to facilitate the business activities of our Watches 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. 
STAR MICRONICS CO., LTD. 100,000 168 We own the company’s shares to facilitate the business activities of our Machine Tools 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. 
Shinko Shoji Co.,Ltd. 76,900 144 We own the company’s shares to facilitate the business activities of our 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. 
Dai-ichi Life Holdings, Inc. 41,700 64 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 HACHIJUNI BANK,LTD. 124,000 56 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. 
Isetan Mitsukoshi Holdings Ltd. 43,279 48 We own the company’s shares to facilitate the business activities of our Watches 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 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. 
Sumitomo Mitsui Financial Group, Inc. 12,229 47 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. 
J. FRONT RETAILING Co., Ltd. 22,508 29 We own the company’s shares to facilitate the business activities of our Watches 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 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. 
Joshin Denki Co.,Ltd. 10,000 25 We own the company’s shares to facilitate the business activities of our Watches 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. 
BICCAMERA INC. 20,000 23 We own the company’s shares to facilitate the business activities of our Watches 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. 
Nippon BS Broadcasting Corporation. 16,000 16 We own the company’s shares to facilitate the business activities of our Machine Tools 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. 
SANRITSU CORPORATION 20,500 14 We own the company’s shares to facilitate the business activities of our Watches 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 Yamanashi Chuo Bank, Ltd. 655 0 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. 
ASIA COMMERCIAL  HOLDINGS LTD. 111,750 0 We own the company’s shares to facilitate the business activities of our Watches 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. 
Management Policy
Message from President & CEO
Fundamental Management Policy / Mid-term Management Strategy
Business and Other Risks
Corporate Governance
ESG Initiatives at CITIZEN

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