Casio Computer Co.,Ltd. (TYO:6952)
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May 7, 2026, 3:30 PM JST
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Earnings Call: Q2 2026

Nov 6, 2025

Shin Takano
President and CEO, Casio

I'm Shin Takano, President and CEO of Casio. Thank you for taking time out of your busy schedule to view this online briefing. I'd like to take this opportunity to thank you for your support. Now, let me first report on the consolidated results of the first half of the fiscal year ending in March 31st, 2026. Net sales were JPY 132.7 billion, down 3.1% year-on-year. Operating profit was JPY 9.5 billion, down 8.2% year-on-year. Operating profit margin was 7.2%. Profit attributable to the owners of the parent was JPY 8.1 billion. ROE was 7.3%. These are the results by segment. The timepieces reported high sales and lower profit than the same period last year. Operating margin was 12.6%. The consumer segment saw a drop in revenue and profit, with an operating profit margin of 6.2%. Businesses that were previously recorded in the system segment have been combined with the other segment.

We did the same for the previous year's results. Adjustments were about the same level as the previous year. Next, consolidated results for Q2. Net sales were JPY 70.5 billion, down 1.8% year-on-year. Operating profit was JPY 5.8 billion, down 0.9% year-on-year. Operating profit margin was 8.2%. Profit attributable to owners of the parent was JPY 4.3 billion. Net sales and operating profit were unchanged from the last year's level, but profit attributable to owners of the parent increased thanks to structural improvement made last year. Next, the Q2 results by business segment. The timepieces saw an increase in sales and profit, with OP margin of 14.2%. Operating profit as well as OP margin were about the same level as the previous year. The consumer business saw a drop in sales and profit, with OP margin of 6.5%, almost unchanged from the previous year. Adjustments came to negative JPY 1.9 billion.

Now, I'll give you highlights of Q2 by segment. The timepieces performed better than the previous year, both in sales and profit. While the Chinese market was sluggish, sales in other regions remained firm, driving an upswing from the plan. The graph on the right shows Q2 sales by region. This slide shows Q2 sales and overview by region for the timepieces. The business as a whole saw an increase of 3% from the same period last year on the local currency basis. Even though China posted a significant decline, regions excluding China saw a 5% increase on the local currency basis. Domestic Casio watch sales expanded, and the ratio of inbound tourist sales increased slightly year-on-year to about 11%. In North America, there were last-minute purchases before price revisions in response to the Trump tariffs. E-commerce remained strong. In Europe, Spain and Portugal were driving strong sales.

Sales promotion by our Pan-European Ambassador Central C contributed to strong sales of GA2100BM. G-SHOCK also did well, driven by strong Casio watch sales. China business continued to struggle due to consumer purchasing behaviors amid economic uncertainties. In other regions, India continued to perform well, both online and offline. We continue to expand G-SHOCK marketing using brand ambassadors. In ASEAN, sales were strong in the Philippines and Vietnam. Hong Kong has shown a sign of recovery from the previous year's sluggish demand. Sales in Latin America and the Middle East remained firm. Next, timepieces, Q2 results, and overview by product. The G-SHOCK percentage of the total timepieces sales was 42%. Strong sales of Casio watch continued worldwide, resulting in a decline in the G-SHOCK share in total sales.

A delay in the launch of new G-SHOCK products from Q2 to Q3 or later further pushed down the percentage of G-SHOCK in the overall timepieces sales. Let's look at individual product groups. In G-SHOCK metal, the GM2110 series, which features metallic-colored octagonal dial, were popular globally. MRGB5000HD was well received for its fusion with Japanese traditional craftsmanship. The model has already been sold out in limited quantity sales despite the JPY 935,000 price tag. In the G-SHOCK resin, the octagonal GA2100 models were popular globally. Its sales were stable. Sales of GWM5600, a model featuring multi-band six in the 5600 series, were strong mainly in Europe and Japan. Sales of Casio watch Edifice, our first watch with a mechanical movement, were firm worldwide. Oceanus OCWS7000RA, which features uniquely lustrous dial, were strong in Japan. Sales of Casio watch overall were strong.

Next, in the EdTech sound business, sales were slightly down from the plan due to some delays in recording sales in other regions. Electronic dictionaries sustained a loss of JPY 400 million. Operating profit margin of scientific and standard calculators was 16.6%. In the sound business, domestic sales were on the road for recovery, but the challenging market environment continued outside Japan. Next, the full-year forecast for the current fiscal year. On August 1st, we reduced operating profit by JPY 3 billion from the plan, factoring in the impact of the US tariffs. We stick with this forecast, meaning no further revision in the full-year forecast. Full-year forecast by segment is also unchanged from our August forecast. Now, I'll talk about strategies by business segment, starting with timepieces business. We'll boost product development in the G-SHOCK premium line with a focus on the quality of exterior finish.

We'll also co-create new and unique designs by using AI. In the middle-priced metal line, we'll expand our new trendy product offerings. In the entry line, we'll continue to focus on our baseline model or iconic models. We'll also promote global marketing aimed at reintroducing the value of G-SHOCK. Next, Casio watch. It is expanding its fan base while continuing to enjoy strong sales worldwide. We are expanding its sales channel and areas and raising its unit prices. We'll further expand the business. Now, take a look at new product releases. The unique-shaped GAV01 is introducing new colors and ring-sized models with shock-resistant construction and 20-bar water resistance. We will be releasing products in new design categories like these. We've launched a general sales of SadoKei, which gained high popularity during crowdfunding last year.

In addition, we've released collaboration models with Evangelion and the movies Back to the Future and others, aiming to expand our fan base. As for G-SHOCK branding, designer Niko has created original G-SHOCK characters for us. Each character represents different G-SHOCK iconic models. We are going to launch marketing campaigns featuring these characters. We've appointed GX as our G-SHOCK global ambassador. The globally popular hip-hop girls' group will help us send out the brand philosophy to the Gen Z. In area marketing, our Pan-European Ambassador Central C, along with local ambassadors in each nation, will further strengthen G-SHOCK marketing. In India, we'll leverage the two top ambassadors. We'll expand touchpoints from major cities to provisional cities. We've opened an exclusive store with a café in one of Korea's leading shopping districts. We will promote not only watches but also lifestyle concepts. Next, the consumer business strategies.

In the education business, we'll expand sales of highly profitable new class widths while stepping up measures against counterfeit product and increase the market share of genuine products. We will create demand in high-priority nations to expand the use of electronic calculators. We'll implement sales promotion for standard calculators, taking the opportunity of events marking the 60th anniversary of Casio calculators. In education apps, we'll continue to enhance features of the comprehensive learning platform ClassPad.net. In collaboration with our group company, Libri, we'll also seek to deliver the product to more schools. In the sound business, we will continue our efforts to boost brand recognition of high-value added products. We will also leverage advanced technologies to create new experience value. At the same time, we will continue with structural reforms by halving our lineups and pulling out from unprofitable businesses.

Let me talk about Digitalize Sound Source Project for Akiko's Piano. In conjunction with Akiko's Piano's support concert by world-renowned pianists Matsu Akiri, Akane Sakai, and Hayato Sumio, we launched a digital sound archiving project to preserve and pass on the unique tones of the atomic-bound piano of Akiko. Casio Celeviano was used to digitalize the sound of Akiko's piano. Next, our initiatives in new domains. First, about AI pet robot Mufflin. Mufflin has heart like a living creature. It's a pet robot that gives a holder emotional energy. Its emotion develops through daily contacts with people. The product was launched in November 2024 in Japan. It has been popular among a wider range of people than we had anticipated. In October, we began selling Mufflin in the U.S. and U.K. markets. We will continue to pursue further business expansion into the mental wellness sector.

In the creator economy domain, we've officially released Waves Place, which uses AI to generate sound effects and Stream times, a dedicated live streaming scheduler. We entered into a business alliance agreement with TIAPS. We jointly launched a streamer training program to create a new live streaming market. Next, I'll briefly talk about the appendix. Five Casio products shown here received the FY 2025 Good Design Award, or G-Mark, by the Japan Institute of Design Promotion. We've launched general sales of SadoKei, a watch for use in sauna. It was sold out within 10 minutes after the limited launch by crowdfunding campaign. It withstands high temperature and high humidity. It has a highly visible time display. With a simple push, you can switch to a 12 minute timer.

As part of the virtual G-SHOCK project, we are collaborating with The Sandbox Web3 gaming metaverse to develop a free game that allows players to experience the G-SHOCK worldview. We also sold limited-edition avatars, NFT items, and more. Finally, our company has given the top rating in a 2024 CDP survey conducted by CDP, an international environmental NPO. CDP evaluates corporate efforts to fight climate change in their supply chains. As a result, Casio was recognized as a supplier engagement leader. There are no changes to our capital allocation policy. Also, no changes to the target financial indicators. This is a forex impact. This is a sales trend for timepieces business. This is a highlight of the balance sheet. This concludes my presentation. Thank you so much.

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