History of Value Creation 2007 Official timekeeper of the Tokyo Marathon History of the Seiko Holdings Group (ongoing)

Tokyo Marathon Foundation The spirit of our founder from more Launched a high-precision standard time server 2002 than 130 years ago has been inherited Started time 2009 1999 stamp service IAAF World Championships in to create a new future for society. Athletics Berlin 1999 2005 Started CREPiCO, Japan's 2000 Developed mercury-free first wireless credit card Developed inkjet silver oxide battery print head 2013 payment service 2012 Launched Launched the wireless Developed components for hard RP-E10, the smallest router disk drives and fastest POS supporting 2012 printer in the industry LTE/3G 1987 Launched Seiko 1999 Astron, the world's 2016 Official timer of the Started LINK TO 2019 Developed precision turned parts for Launched the world's first first GPS solar IAAF World Athletics ordering link service IAAF World automobiles Spring Drive watch watch 2014 Championships in Grand Seiko Hi for the food service Championships in Rome (ongoing) Beat GMT wins industry Athletics Doha prize at Grand Prix d'Horlogerie de Genve 2017 Ultra compact/ultra lightweight 1988 mobile printer for business use Launched the world's first 2014 automatic power-generating quartz 2018 watch (later renamed as Kinetic) Launched the Prospex wins prize at Space Link, the Grand Prix d'Horlogerie 1985 world's first de Genve Launched the world's first satellite radio wave Systems Soutions automated ordering system clock for home use usiness 1970 for the restaurant industry 1984 Installed the Launched Pyramid Talk, the world's first talking clock 2019 radio-controlled Developed Seiko Block Cam new ectronic eices usiness clock system at clock service material the Osaka Expo 1983 Launched the world's first wristwatch with computer atches usiness

CocsaoTime 1982 Systems usiness Developed thermal printer mechanisms Retail division split-off

1947 WAKO Co., Ltd. 1998 SEIKO Time Systems Inc. 1964 1993 SEIKO System Clock and Sports Timing Inc. Official timer of the 2014 Became an equity-method affiliated company Tokyo Olympic 1996 SEIKO OPTICAL PRODUCTS CO., LTD. Games (later serving Kintaro Hattori, as official timer of the founder five other Olympic 1881 1949 2001 SEIKO WATCH CORPORATION Games) Company Listed on the Tokyo Company established 1917 Stock Exchange 1983 1997 2007 established attori attori Co td attori Seio Co td S CAT S S CAT 1968 1996 Launched the 1975 Nippon Precision Circuits Inc. 2005 SEIKO NPC CORPORATION 1969 world's first 1881 Launched Seiko quartz wall uartz Astron,the SEIKO Clock Inc. 1932 clock for 1996 Completed world's first quartz 1892 1970 watch home use 1892 construction of Started manufacturing Seikosha Clock Factory Seikosha Co., Ltd. 1996 SEIKO Precision Inc. current clock tower wall clocks in Ginza 1960 2013 SEIKO Solutions Inc. Launched Grand Seiko, 1997 the wristwatch achieved Watch 1983 Seiko the world's highest 1913 division split-off Seiko Denshi Co., Ltd. Instruments Inc. standard in accuracy Launched the first wristwatch 1937 2009 1894 made in Japan, Laurel Daini Seikosha Co., Ltd. Integrated Seiko Instruments Inc. First clock tower in Ginza Suwa Plant split-off

1959 Suwa Seikosha Co., Ltd. 1985 Seiko Epson Corporation 2003 Listed on the Tokyo Stock Exchange

2 SEIKO HOLDINGS GROUP VALUE REPORT 2019 SEIKO HOLDINGS GROUP VALUE REPORT 2019 3

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Value Creation Process of the Seiko Holdings Group

We utilize outstanding technologies, brands, and solutions that have created traditions in order to provide our Value provided to customers and society with new excitements and joy. customers and society

Va ●H lu ●H igh- es igh-p qua c reci lity r sio pr ea Connecting to the future with reliable quality n ti od t me uc e i ts d nfo a rm n b Visibility, robustness, and durability a d y ies ti so b ivit on lu u ct ti a on s s ers ● s i s old H n e keh ces ig e in sta sour h ● s s f re a R s u o an d e b ge m d f a an hu e in r r e d e c u e s v d d r a t o i ve m i W i lu v g D e a i Products with sensibility r t n ● ● p k i i r e e t s Development o t r r s d i s a te n o e li u g Providing the oy of holding, wearing, i c p y b t s 8 a s t p r 3 p a a 1 a u n t f c e and giving s d o l Engineering Design g

a s y y s c e r i e o g r t v o c s l i i c r o H e n s u h o ● c e s T

e ● R Achieving high-density mounting Planning Manufacturing Compact, energy-efficient, and highly functional products

●

T e c h n o After l o Marketing ● g i c service H a i l g c Digital transformation h a l y p n

m a o b Sales i o i t t li R c Providing efficiency, convenience, i t a v e f a s e s i te s t a d ● o a u s safety and security, reduced costs, n E f d x r o p c e lo e s y r e a ie s n improved uality, and reduced l n e h c R in s u e e h m /e a ig a x in g h n pe environmental impact r r fo a ty e ti s d li so s rc r n i u e e a ib r e d ce ● d ld ts e s D n r e o e c ep h m d ● e e e n St r r it a ab ela k c n le tio ta Ex io fin ns s t an hips ● ta cia wi s ec l b th pa e d p ase rtners lu in ex a -m f Millisecond precision V of o e- se ac en pe S d ● Providing emotions via sports and an lue va tain Cer music that connect people ●

6 SEIKO HOLDINGS GROUP VALUE REPORT 2019 SEIKO HOLDINGS GROUP VALUE REPORT 2019 7 History of Value Creation

Global Expansion (as of March 31, 2019)

Japan A global brand established over the world Net sales ratio by region: 57% No. of group companies: 26 Seiko Holdings Corporation Seiko Instruments Inc. Seiko Watch Corporation Seiko Solutions Inc.

Dalian Seiko Instruments Inc.

SEIKO U.K. Limited Grand Seiko Corporation of America

Europe / Africa North / Central / South America Net sales ratio by region: 9% SEIKO Deutschland Net sales ratio by region: 7% Branch of SEIKO U.K. Limited No. of group companies: 5 Grand Seiko Boutique Guangzhou (Beverly Hills, Los Angeles) No. of group companies: 5 SII Watch Co., Ltd.

Seiko Boutique (New York)

Asia / Oceania Seiko Instruments Singapore Pte. Ltd. / Middle-East Seiko Instruments (Thailand) Ltd. Net sales ratio by region: 27% SEIKO Australia Pty. Ltd. No. of group companies: 21

1974: Taiwan 1983: Germany 1988: Hong Kong 2007: India History of Global Expansion HO CHIEN Tranding Ltd.*7 Seiko Instruments GmbH SEIKO CLOCK (Hong Kong) Ltd. SEIKO Watch India Private Limited

1970: U.S.A. 1977: Australia 1984: Taiwan 1991: Thailand 2008: Russia 8 SEIKO TIME CORPORATION*3 Seiko Service Centre (Australia) Pty. Ltd.* Seiko Precision Co., Ltd.*10 MUANG THONG SEIKO LTD.*13 SEIKO RUS Limited Liability Company

1913: Shanghai 1971: United Kingdom 1977: Panama 1986: France 2006: P.R.China 2011: P.R.China 9 Local office established Seiko Time (U.K.) LTD.*4 Seiko Time (Panama) S.A.* Compagnie Generale Horlogere S.A.*11 SEIKO Watch (Shanghai) Co., Ltd. SEIKO CLOCK (Shenzhen) Co., Ltd. Sales 1968: Hong Kong 1972: Germany 1981: U.S.A. 1986: Netherlands 2005: P.R.China 2018: Italy Hattori (H.K.) LTD.*1 Seiko Time GmbH*5 Seiko Instruments U.S.A., Inc. SEIKO Nederland B.V. Seiko Instruments (Shanghai) Inc. Seiko Italia- sede secondaria italiana di Seiko France SAS

Established in 1881 1970 1980 1990 2000 2010

1968: Hong Kong 1973: Singapore 1987: Singapore 1989: P.R.China 2006: P.R.China Precision Engineering Ltd.*2 Singapore Time Pte. Ltd.*6 Asian Electronic Technology Pte. Ltd. Dalian Seiko Instruments Inc. Seiko Instruments Technology (Shanghai) Inc. Manufacturing 1988: Thailand 1989: Malaysia 2002: P.R.China *1 Currently SEIKO Hong Kong Ltd. *2 Currently Seiko Instruments (H.K.) Ltd. *3 Currently Grand Seiko Corporation of America and Seiko Watch of America LLC SEIKOSHA (THAILAND) CO., LTD.*12 Instruments Technology (Johor) Sdn. Bhd. Guangzhou SII Watch Co., Ltd. *4 Currently SEIKO U.K. Limited *5 Currently SEIKO Deutschland Branch of SEIKO U.K. Limited *6 Currently Seiko Instruments Singapore Pte. Ltd. Seiko Instruments (Thailand) Ltd. *7 Currently SEIKO Taiwan Co., Ltd. *8 Currently SEIKO Australia Pty. Ltd. *9 Currently SEIKO Panama, S.A. *10 Currently Seiko Instruments Taiwan Inc. *11 Currently SEIKO France S.A.S. *12 Currently SEIKO Precision (Thailand) Co., Ltd. *13 Currently SEIKO (Thailand) Co., Ltd.

8 SEIKO HOLDINGS GROUP VALUE REPORT 2019 SEIKO HOLDINGS GROUP VALUE REPORT 2019 9 History of Value Creation

At a Glance Consolidated performance (fiscal year 2018)

Net Sales 247.2 billion yen / Operating Profit 9.3 billion yen / Operating Profit ratio 3.8%

Description of Business Main Products and Services Net Sales by Segment Net Sales Operating Profit/Operating Profit Ratio (Billions of yen) Watches Business Inter-segment sales perating profit The core business of the Seiko Holdings Group. Completed watches (illions of yen) Sales to third parties (illions of yen) perating profit ratio () With our brands such as Seiko, Grand Seiko, and 1 1 Watch movements Credor, we have remained one of the few manufacture 1.3 1.7 . 1.3 d'horlogerie (full-scale manufacturers) in the world that 1 1.3 consistently engages in parts production, assembly, 1.1 1 1 and adjustment, and we sell watches manufactured 57% 7. 7. 1 by Group companies in Japan and overseas 7.8 7.7 18.1 13.1 to places all over the world. We also operate 138.8 140.3 133. .7 . watch retailers in Japan and sell watch movements (components) globally.

SEIKO WATCH CORPORATION F1 F1 F1 F17 F1 F1 F1 F17 Main Operating Companies ● ●Seiko Instruments Inc.

(Billions of yen) Electronic Devices Inter-segment sales perating profit (illions of yen) Sales to third parties (illions of yen) perating profit ratio () We manufacture and sell mechatronics devices Mechatronics Devices Business 1 and printer devices born from our history of watch ●Micro batteries/chip capacitors .7 1 .1 .7 development and manufacturing. We support the ●Crystal oscillators 8 . 1 advancement of society and industry by providing ●Integrated circuits for crystal oscillators 3. ●Integrated circuits for sensors 3.8 precision components that compete with sub-micron 8 High-performance metal products % precision as well as printer devices that provide the ● 21 . . ●Rare earth magnets .1 3 7.1 core components of industrial inkjet printers and 8. ●Hard disk drive components 78.1 thermal printers, and we boast the world's leading ●Automobile parts 52.2 1.8 . share of products such as integrated circuits for crystal ●Other precision turned parts oscillators and micro batteries. 1 3.1 Printer Devices 1. ●Inkjet print heads Seiko Instruments Inc. F1 F1 F1 F17 F1 F1 F1 F17 Main Operating Companies ● ●Thermal printer mechanisms SEIKO NPC CORPORATION ● ●POS printers ●Mobile printers

(Billions of yen) Systems Inter-segment sales perating profit (illions of yen) (illions of yen) () Solutions Business We provide various solutions by products and ●Wireless communication equipment Sales to third parties perating profit ratio services related to the information network systems 3 . 1 ●Information network systems and data services to support the age of IoT. We also 3 ●Data services 1 provide one-stop optimal solutions from consultation . ●Computer performance management software 1. at the initial stage to system construction and 12% . 1. operation managements to meet the customer’s wide . .3 1. requirements such as security for complex systems 1 .7 1 and improvement of productivity at offices and 29.4 .3 1 . work sites. . 1. 1. . .3 3 .3 1. 1. F1 F1 F1 F17 F1 F1 F1 F17 Main Operating Companies ●SEIKO Solutions Inc.

(Billions of yen) Others Inter-segment sales perating profit As Others, the Clocks Business that provides Clocks (illions of yen) Sales to third parties (illions of yen) perating profit ratio () 3 1 everything from planning and production to after-sales ●Luxury mechanical clocks ●Wall clocks . 3 services, the Wako Business that handles the Wako ●Table clocks ●Alarm clocks .8 3. 3. 3. upscale specialty store that is a landmark in Ginza and Wako . . . 3 10% 3. . provides high-quality services and products, ●Watches ●Clocks ●Jewelry 1 ●Men's and women's products ●Handbags . . the Time Systems Business that handles sports timing . .7 .3 25.2 3. . 1 ●Interior decoration products ●Food, etc. . devices and system clocks used at public facilities . 1 1.1 and sports stadiums. Time Systems SEIKO Clock Inc. ● ●Systems clocks ●Sports timing devices F1 F1 F1 F17 F1 F1 F1 F17 Main Operating Companies ●WAKO Co., Ltd. ●Digital signage ●Large display boards ●SEIKO Time Systems Inc. ●Baseball field scoreboards

10 SEIKO HOLDINGS GROUP VALUE REPORT 2019 SEIKO HOLDINGS GROUP VALUE REPORT 2019 11 History of Value Creation

Financial/Non-Financial Review (as of March 31, 2019)

20 year net sales transition

(illions of yen) 11 terrorist attacks in the nited States ankruptcy of Great East apan Earthuake Consumption tax hike ( to 8) 3 ehman rothers Thailand floods 3 aunched Seiko Astron, the worlds first GPS solar watch Transfer of the Scientific Instruments usiness Withdrawal from Acuired IIM Corporation Watches usiness split off into Withdrawal from 1 Integrated the CD Display for the Systems Solutions separate company and Seiko the Mobile Phone Partial transfer of the Seiko Instruments Inc. Module usiness Established semiconductor usiness Camera Module 1 became a holding company ptical Products business company Partial transfer of usiness Transfer of the Golf usiness Products usiness Transfer of the Wide semiconductor business Withdrawal from the ewelry and Format Printer usiness Consumer Electronics usiness F1 F F1 F F3 F F F F7 F8 F F1 F 11 F1 F13 F1 F1 F1 F17

Operating profit/operating profit to sales ratio Ordinary profit Number of employees Ratio of women in managerial positions*5

(illions of yen) () (illions of yen) (people) （%） perating profit 1 ■ 1 1 1, 1 perating profit to sales 13, 13.3 13,37 13, ratio 1.3 11.8 1,33 1 11. 8 1 1.8 1. 1. 1, 1 .1 8.3 7. 7.1 . . . . ,

3 . 3

F1 F1 F1 F17 F1 F1 F1 F17 F1 F1 F1 F17 F1 F1 F1 F17

1 6 Profit attributable to owners of parent Net interest bearing debt* CO2 emissions* Employee composition

(illions of yen) (illions of yen) (t-C) Total interest bearing debt verseas thers Corporate (Holding company) 1, ■ 1 ■Cash and deposits apan 137. 13. 17,3 1,13 1,18 1,83 ■ 1.7 17. ■ et interest bearing debt 1, 1 1. 3.3 113.3 Systems Solutions usiness 3,8 3, 3, 3.1 3,1 8, 3. 1 Total 1.1 11. , 1 , . 11. People .3 88. 7.1 7,1 ,3 ,1 71,887 Electronic Devices usiness Watches usiness 3 ,

F1 F1 F1 F17 F1 F1 F1 F17 F1 F1 F1 F17

Equity capital/Equity capital ratio*2 ROE/ROA*3*4

(illions of yen) （） （） Euity capital RE (return on euity) 1 ■ 3 8. Euity capital ratio RA (return on assets) *1 Net interest bearing debt = interest bearing debt － cash and deposits 1. 8.1 1 . *2 Equity capital ratio = equity capital / total assets x 100 . The Company has applied "Partial Amendments to Accounting Standard for Tax Effect Accounting" (ASBJ Statement No.28, February 16, 2018) applied from the beginning of 8 FY2018, and the indexes for FY2017 are presented after reclassification 3.1 3 1 13.1 *3 ROE = profit attributable to owners of parent / ((equity capital at beginning of fiscal year + equity capital at end of fiscal year) / 2) x 100 .8 11. *4 ROA = ordinary profit / ((total assets at beginning of fiscal year + total assets at end of fiscal year) / 2) x 100 7.1 8.7 1 *5 Scope of calculation: Seiko Holdings Corporation and 13 operating companies in Japan . *6 Scope of calculation: Seiko Holdings Corporation and 20 operating companies in Japan and overseas 1 3. 3. 3. . Semiconductor business company excluded from scope of calculation from FY2018 due to being excluded from the scope of consolidation in January 2018 F1 F1 F1 F17 F1 F1 F1 F17

12 SEIKO HOLDINGS GROUP VALUE REPORT 2019 SEIKO HOLDINGS GROUP VALUE REPORT 2019 13 History of Value Creation

Nine-Year Financial/Non-Financial Table

(Millions of yen) Summary FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2011 and FY2012 saw decreased net sales due to Great East Japan Earthquake Consolidated Statement of Income and the flooding in Thailand in 2011. The Watches Business performed favorably Net sales (by segment) after FY2013, mainly in the Japanese market, but from FY2016, net sales temporarily Watches 106,965 112,452 121,022 150,739 159,075 164,453 134,592 140,156 141,788 slumped due to market changes such as shifts in consumption by foreign tourists 1 in Japan and a global stagnation in the market for affordable watches. Furthermore, Electronic Devices* 167,454 147,165 125,267 93,038 96,137 94,900 84,077 81,852 55,548 net sales for FY2018 decreased compared to net sales for FY2010, as a result of Systems Solutions*2 － － － 22,868 21,142 19,455 20,287 27,411 30,809 promoting selection and concentration mainly in the Electronic Devices Business Others*3 48,291 46,706 45,928 51,307 26,450 28,218 27,043 27,852 28,363 (including the partial transfer of the semiconductor business in January 2018). Adjustments (8,831) (9,386) (8,427) (9,668) (9,332) (10,323) (8,885) (8,743) (9,215) However, performance steadily recovered in the Watches Business from FY2016 due to acceleration of a shift to mid-high priced watches, and net sales in the Systems Consolidated total 313,881 296,937 283,790 308,286 293,472 296,705 257,115 268,529 247,293 Solutions Business expanded by 150% from when it became a separate segment Gross profit 96,638 90,195 87,053 103,540 104,266 108,540 96,292 102,297 96,338 in FY2013. Gross profit to sales ratio (%) 30.8% 30.4% 30.7% 33.6% 35.5% 36.6% 37.5% 38.1% 39.0% On the other hand, although selling, general and administrative expenses increased Selling, general and administrative expenses 84,981 83,462 81,530 89,526 92,599 95,233 88,804 91,461 86,943 due to measures such as enhanced investment in branding and advertising, consolidated operating profit returned to a positive increase over the past three Operating profit (by segment) years when the impact of the exclusion of the semiconductor business from Watches 7,965 7,380 7,874 12,253 12,334 12,722 7,615 7,902 10,391 the scope of consolidation is excluded, thanks to the effect of restructuring and Electronic Devices*1 6,204 1,301 (1,513) 1,351 1,865 2,917 3,809 5,793 1,414 improvement conducted in unprofitable businesses in each segment, despite a Systems Solutions*2 － － － 349 327 364 1,283 1,605 2,401 temporary decrease. Others*3 (1,235) (563) (32) 761 633 907 304 551 697 Interest expenses also greatly decreased due to continuous efforts for reducing interest bearing debt, including the effective utilization of assets, and this lead to Adjustments (1,278) (1,385) (805) (702) (3,493) (3,603) (5,525) (5,015) (5,511) greatly improved non-operating balance. Consolidated total 11,656 6,733 5,523 14,014 11,667 13,307 7,487 10,836 9,394 Operating profit to sales ratio (%) 3.7% 2.3% 1.9% 4.5% 4.0% 4.5% 2.9% 4.0% 3.8% Improved non-operating balance Ordinary profit 6,585 1,280 3,243 10,165 12,373 11,879 6,671 10,911 11,410 Ordinary profit to sales ratio (%) 2.1% 0.4% 1.1% 3.3% 4.2% 4.0% 2.6% 4.1% 4.6% (illions of yen) Profit attributable to owners of parent 2,181 (11,014) 5,527 7,422 21,778 12,142 5,392 11,541 9,249 Profit attributable to owners of parent to sales ratio (%) 0.7% (3.7%) 1.9% 2.4% 7.4% 4.1% 2.1% 4.3% 3.7% 3.0 . 4.7 Advertising and sales promotion expenses 7,079 7,962 9,476 13,343 16,624 18,366 15,882 16,393 16,905 2.2 2.3 3.4 3.6 3.2 Salaries and wages 35,205 34,165 32,693 36,139 36,060 37,200 34,819 34,639 32,454 2.2 1.7 2.6 Provision for bonuses 949 901 1,113 2,007 2,202 2,074 1,867 1,986 1,879 1.1 0.8 Retirement benefit expenses 1,687 2,518 2,016 1,034 1,928 1,610 770 1,383 1,470 (2.1) (1.7) (0.9) (0. (1.2) 4 (4.7) (3.0) (0.5) Research and development expenses* 5,497 5,294 5,046 3,851 4,112 4,023 3,901 4,669 4,190 (4.0) (0.2) (1.7) Consolidated Balance Sheet (1.3) (.) (5.5) (5.3) (10.0) (1.3) Cash and deposits 51,958 51,765 42,830 43,002 41,292 39,131 35,355 34,229 33,844 (1.0) Inventories 60,974 59,370 60,638 57,022 62,910 65,196 66,177 57,011 58,305 (1.8) 5 Interest bearing debt* 240,573 241,443 203,454 200,881 137,250 127,560 136,586 113,387 106,022 (.) (1.0) (3.0) (0.7) ther non-operating income Net assets 46,270 31,965 40,801 64,766 92,589 102,692 107,161 105,170 110,415 (1.2) Foreign exchange gains (1.5) Total assets 400,457 386,128 355,308 366,753 333,701 329,115 328,857 305,297 303,036 Interest expenses (7.) (1.6) Consolidated Statement of Cash Flows Foreign exchange losses Net cash provided (used in) operating activities 20,498 11,119 21,450 15,598 16,562 15,096 4,209 27,885 17,508 ther non-operating expenses Net cash provided (used in) investing activities (8,696) (11,215) (2,027) (10,917) 46,254 (8,334) (13,200) (17,430) (7,093) on-operating balance (1.) Net cash provided (used in) financing activities (14,394) 362 (29,274) (3,517) (66,816) (6,645) 5,713 (11,759) (10,670) F1 F 11 F1 F13 F1 F1 F1 F17 F18 Free cash flow 11,802 (96) 19,423 4,681 62,816 6,762 (8,991) 10,455 10,414 Depreciation 16,845 15,078 12,886 12,242 10,892 10,325 10,959 10,128 8,980 Purchase of property, plant and equipment (13,349) (12,732) (19,790) (11,006) (9,350) (13,054) (12,138) (6,954) (6,341) Management Indices *1 Name changed to the Electronic Devices Business from FY2013 *2 Separate segment from FY2013 (included in the Electronic Devices Business until FY2012) ROE (return on equity) (%)*6 6.0% (36.0%) 17.5% 14.6% 28.4% 13.1% 5.6% 11.4% 8.7% *3 Included the Optical Products Business until FY2013 (from FY2014, an equity method ROA (return on assets) (%)*7 1.6% 0.3% 0.9% 2.8% 3.5% 3.6% 2.0% 3.4% 3.8% affiliated company) *4 Total of research and development expenses include in general and administrative PER (price earnings ratio) (times)*8 22.9 (3.3) 14.3 11.4 5.8 7.6 17.4 9.2 11.7 expenses and manufacturing cost Equity capital 37,189 24,079 39,013 62,871 90,410 94,521 98,119 104,010 109,221 *5 Interest bearing debt = loans payable + lease obligations *6 ROE = profit attributable to owners of parent / ((equity capital at beginning of fiscal year + Equity capital ratio (%)*9 9.3% 6.2% 11.0% 17.1% 27.1% 28.7% 29.8% 34.1% 36.0% equity capital at end of fiscal year) / 2) x 100 Net interest bearing debt*10 188,614 189,678 160,623 157,879 95,957 88,428 101,230 79,158 72,178 *7 ROA = ordinary profit / ((total assets at beginning of fiscal year + total assets at end of fiscal year) / 2) x 100 Net D/E ratio (times)*11 4.1 5.9 3.9 2.4 1.0 0.8 0.9 0.7 0.6 *8 PER = stock price / basic earnings per share Basic earnings per share (yen)*12*13 62.17 (301.26) 147.07 179.58 526.95 293.81 130.71 280.01 224.42 *9 Equity capital ratio = equity capital / total assets x 100 The Company has applied Net assets per share (yen)*12*14 1,019.87 658.26 943.82 1,521.18 2,187.60 2,287.18 2,380.50 2,523.54 2,649.99 "Partial Amendments to Accounting Standard for Tax Effect Accounting" (ASBJ Dividend per share (yen)*12 10.00 0.00 12.50 25.00 50.00 62.50 75.00 75.00 75.00 Statement No.28, February 16, 2018) applied from the beginning of FY2018, and the indexes for FY2017 are presented after reclassification Dividend payout ratio (%) 16.1% － 8.5% 13.9% 9.5% 21.3% 57.4% 26.8% 33.4% *10 Net interest bearing debt = interest bearing debt － cash and deposits Exchange rate (fiscal year average) (JPY) *11 Net D/E ratio = net interest bearing debt / net assets *12 The Compary conducted a share consolidation of every five shares of its common stock USD 85.7 79.1 83.1 100.2 109.9 120.1 108.4 110.8 110.9 into one share as of October 1, 2017. The value on the left reflect the share consolidation. EUR 113.2 109.0 107.1 134.3 138.7 132.6 118.8 129.7 128.4 *13 Profit attributable to owners of parent pertaining to common stock / average number of shares of common stock outstanding during the period *14 Net assets at end of fiscal year related to common stock / number of common stock at end of fiscal year *15 The ratio started to be managed from March, 31, 2013 Number of employees (people) 18,442 15,968 14,712 13,439 13,565 13,437 13,065 12,033 12,020 Scope of calculation: Seiko Holdings Corporation and 13 operating companies in Japan Ratio of women in managerial positions (%)*15 5.3% 6.3% 7.1% 8.3% 9.1% 10.9% 12.4% *16 Scope of calculation: Seiko Holdings Corporation and 20 operating companies in Japan － － and overseas 16 CO2 emissions (t-CO2)* － － － 103,075 107,453 105,913 105,180 106,583 84,623 Overseas operating companies included in scope of calculation from March 31, 2014 Semiconductor business company excluded from scope of calculation from FY2018 due to being excluded from the scope of consolidation in January 2018

14 SEIKO HOLDINGS GROUP VALUE REPORT 2019 SEIKO HOLDINGS GROUP VALUE REPORT 2019 15