Seiko : Consolidated Result for the year ended 31 March 2023 Presentation Summary of Q&A
May 19, 2023 at 12:40 pm IST
Share
FY2022 Consolidated Results
(from April 1, 2022 to March 31, 2023)
May 10, 2023
Net Sales and Operating Profit by Domain
Both net sales and operating profit increasedin the two strategic domains of the EVS and SS, and operating profit remained lower while net sales grewin the DS.
EVS: Emotional Value Solutions Domain
DS: Devices Solutions Domain
SS: Systems Solutions Domain
Net Sales
Operating Profit
(Billions of yen)
FY2021
FY2022
Variance
FY2021
FY2022
Variance
EVS
150.8
170.7
+19.9
8.2
11.5
+3.2
Watches Business
144.2
+18.4
Watches Business
11.1
+3.4
125.7
7.6
DS
61.0
64.5
+3.4
5.6
5.0
-0.5
SS
34.4
36.6
+2.2
3.9
4.3
+0.4
Others
1.0
1.1
+0.0
0.2
0.1
-0.0
Cons. Adj.
-10.0
-12.5
-2.5
-9.3
-9.9
-0.6
Cons. Total
237.3
260.5
+23.1
8.7
11.2
+2.4
1
Business Environment
★MVP Products
High-added-value, highly profitable products that move people
Positive
factors
Economic Environment
Market Environment
Impact of the depreciation of the yen
Recovery trend in sales to foreign tourists
Economic recovery from COVID-19 in Japan
EVS
Steady performance
DS
of overseas business
【Overseas net sales ratio】(Year-on-yearchanges)
EVSapprox.
%
DS approx.70%
50
(Slight increase)
(+ Several points)
EVS Mainly the WAKO Business
EVS Watches and WAKO Business
Business for food service industry
Watches
Strong performance of luxury goods, especially Swiss brands
Medical equipment
Growing demand of medical equipment
Digital transformation- related business
Increasing investment in digital transformation by companies
EVS
High-priced watches ★ (Japan, Europe, and the U.S.)
DS
Micro batteries
for medical equipment ★
SS
Digital contracts, performance management, security, etc.★
Soaring energy costs
Soaring prices and shortages of parts and materials
Risk of economic recession
EVS
Overall business
DS
EVS
Overall business
DS
EVS Mainly the Watches Business
Watches
Stagnation of affordable watches due to economic recession
Devices for use in consumer and general-purpose products
EVS
Watch movements
DS
Negative
factors
*European, U.S., and Chinese economies
DS Business for Chinese market
Sharp slowdown in 2H from strong demand through 1H
Hard disk drive components, etc.
2
KPIs of SMILE145 (8th Mid-Term Management Plan)
MVP Ratio
GP%
Operating Profit
FY2022
(Year-on-year changes)
Year-on-year changes
Amount (FY2022)
Year-on-year changes
Luxury domain and products with
approx.50%
(approx. +5pt)
high emotional value, such as GB,
as % of net sales
+1.8
11.5
EVS
Target for FY2026
60%
billion yen
+39.6%
pt
Watches Business
approx.70%
approx.75%
GB ratio
Japan
Overseas
*Target for FY2026: 14.5 - 15.0 billion yen
(approx. +10pt)
(approx. +10pt)
Target for FY2026 over 85%
Sales to digital economy and
approx.40%
(slight increase)
- 1.3
5.0
- 10.3%
DS
green economy markets
billion yen
pt
as % of net sales
Target for FY2026
60%
*Target for FY2026: 7.5 - 8.0 billion yen
SS
Stock business
approx.65%
(approx. +5pt)
+1.8
4.3
billion yen
+10.7%
pt
as % of marginal profit
Target for FY2026
73%
*Target for FY2026: 6.5 - 7.0 billion yen
+1.1
11.2
Total
-
pt
billion yen
+28.1%
Cons.
*Target for FY2026: +5.0pt
*Target for FY2026: 18.0 - 20.0 billion yen
compared to FY2021
(common to cons. total and each domain)
3
Cash Allocation & ROIC of SMILE145
Cash Allocation
FY2022
(Billions of yen)
Details of Growth Investment
SMILE145 (8th Mid-Term Management Plan)
20.0
(Billions of yen)
Growth Investment Areas
Branding
approx. 5.0
(Billions of yen)
Growth
・Branding
Over 20.0
10.0
investment
・Capital investment
Over 50.0
Capital investment
approx. 9.0
5 years
Over 100.0
・Investment in new area development
before prior
Investment in
investment
(R&D, M&A, DX, Human Resources, etc.)
approx. 6.0
Over 30.0
new area development
operating CF
0.0
Improvement of
Over 130.0
financial constitution
ROIC (Return on Invested Capital)
Over 15.0
Shareholder
FY22
FY26
return
FY21
Over 15.0
Estimate
Target
Target
3.5%
3.6%
4.1%
Over 6.5%
*ROIC = (Ordinary income after income taxes + Interest expense) / (Interest bearing debt + Net assets) *ROIC for FY2022 is an estimate as of May 9, 2023
Seiko Holdings Corporation published this content on 19 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2023 07:09:08 UTC.
Seiko Group Corp is a Japan-based company mainly engaged in the operation of watch business, electronic device business and system solution business. The Company operates through three business segments. The Watch segment is engaged in the manufacture, wholesale and retail of watches and watch movements, as well as watch repair and after-sales service. The Electronic Device segment is engaged in the manufacture and sale of crystal oscillators, batteries and materials, printers, and precision parts. The System Solution segment is engaged in the manufacture and sale of products related to wireless communication equipment, information network systems, and data services. The Company also operates the time creation and wako business, including the sale of equipment clocks and sports timing equipment, the development manufacture, sale, repair and after-sales service of clocks, the retail of luxury jewelry, apparel and miscellaneous goods, and real estate leasing business.