Fundamental Management Policy/Mid-term Management Strategy

In February 2019, we formulated the Medium-Term Management Plan 2021, with FY2021 as the final year.
Setting “Sense the time and create an impression for the future” as the Group’s medium-term management vision in the plan, we are working to take on the challenge of creating new and unique value, not merely continuing manufacturing as in the past, and moving toward a sustainable future, being sensitive to changes over time.

Medium-Term Management Plan Target

In FY2021, we will aim to achieve net sales of 370.0 billion yen, operating profit of 30.0 billion yen and an ROE of 8.0%.

Concept of a Business Portfolio
‐ Watches and Machine Tools are the core -

Key Strategy to Achieve the Citizen Group’s Management Vision

We will set the following three initiatives as our key strategy and strive to promote a digital transformation, responding to digitalization by making major revisions to our past manufacturing and its approaches.

Efforts of Watches Business
- Create new value and experience over time -

Forecast for the Watch Market

We have the following views on the future watch market.

・Smartwatch market : Continue to expand
・The mid-price range market: Remain or increase slightly
・Luxury Swiss watches and mechanical watches: Stable demand
・Analog quartz market mainly of low-priced products: Continues to decline

Business Vision

The business vision is to “create new value and experience over time.”

We believe that “we cannot survive unless we have products that present strong individuality that wearers find value in having.”

<Strengths of the Company>
We have the foundations in the form of technical and development capabilities and quality, which we have cultivated for 100 years as a manufacture d’horlogerie. These enable us to manufacture parts to finished products in an integrated manner.
Moreover, we have been providing the value of “goods” unique to CITIZEN with leading-edge technologies to manufacture with the world’ first or thinnest products, the fastest speed  in the world through continuous evolution as the manufacture d’horlogerie.

<Direction the Company will head in>
In the Medium-Term Management Plan 2021, we will proceed with manufacturing that can provide the value of an “experience” unique to CITIZEN, by creating new value and experience even after customers have obtained the watches we made.
For that purpose, we will aim to provide new value and experience throughout the value chain by using digital technology in a range of departments, including planning, development, manufacturing, advertising, marketing and sales.  

Key Measures and Target Index

Regarding the following four measures as key strategies to embody this business vision, we will aim to achieve net sales of 187.0 billion yen and operating profit of 17.0 billion yen as our target indexes for FY2021 by creating new value and experience.

Efforts of Machine Tools Business
- Create the world's most advanced production innovation solution to establish the position as a new manufacturing (monozukuri) company -

Market Forecast

Machine Tools are susceptible to economic fluctuations, and deceleration signs are a concern at the moment, although the industry has been booming worldwide particularly over the past few years.
However, we expect that demand will grow over the medium to long terms due to IoT, manpower saving and the rise of emerging countries.

Business Vision

To sustain growth even in the midst of economic fluctuations, we will adopt as our vision, “Create the world’s most advanced production innovation solution to establish the position as a new manufacturing (monozukuri) company.”

Key Measures and Target Index

Regarding the following three measures as key strategies, we will aim to achieve net sales of 80.0 billion yen and operating profit of 13.0 billion yen as our target indexes for FY2021.

Shareholder Return Policy

In the Medium-Term Management Plan 2021, we have set the total return ratio including both dividends and share repurchases at 60% or more, taking into consideration the balance of performance-based and stable dividends.

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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