i n you r l i f e
a n n ua l r e p o rt 2002

Profile
Hoya Corporation is engaged in three fields of business:
Information Technology, Eye Care and Lifestyle Refinement. In
the Information Technology field, the Company manufactures andmarkets mask blanks and photomasks that are indispensable tosemiconductor production and photomasks for liquid crystal
displays (LCDs), as well as glass disks for hard disk drives(HDDs) in personal computers and optical glass products for
digital cameras and other optical equipment. The Company has
achieved an unshakeable position in the Information Technology
field through its technological expertise and R&D capabilities.
The Eye Care field is divided into two divisions: the Vision
Care division, primarily involving eyeglasses, and the Health Caredivision, including contact lenses, intraocular lenses forophthalmological use, and hearing aids.
During the fiscal year ended March 31, 2002, Hoya’s
Information Technology operations—with the exception ofphotomasks for LCDs—were faced with a difficult environment.
In contrast, the Company’s business portfolio strategy gave
traction to earnings in the Eye Care field.
Hoya’s Lifestyle Refinement operations consist of the
manufacture and sale of traditional crystal products. At present
this sector is engaged in a sweeping reorganization, with the goalof becoming a contributor to the performance of the Hoya Group.

Cautionary Statements with Respect to Forward-Looking Statements
Statements made in this annual report with respect to plans and future performance that are nothistorical fact are forward-looking statements. These statements are based on management’s
assumptions and beliefs in light of the information currently available to it. Hoya cautions that a
number of factors could cause actual results to differ materially from those discussed in theforward-looking statements. Such factors include but are not limited to foreign exchange rates,
market trends and economic conditions.
Hoya’s fiscal year ends on March 31. In this annual report, reference to years indicate the period
ended March 31 of the year indicated.

Contents

Financial Highlights
Consolidated (Years ended March 31)
2001

2002

Net sales (Millions of yen)

236,802235,265

To Our Shareholders

Operating income (Millions of yen)

45,12843,898Operational Review

Ordinary income (Millions of yen)

48,18445,774

Net income (Millions of yen)

21,86023,741

Total assets (Millions of yen)

267,611

278,068

Total shareholders’ equity (Millions of yen)

195,333

219,180

Information Technology

2› part 1&2

Eye Care

6
22

FINANCIAL› part 3&4

10

Vision Care

10

FINANCIAL

22

Health Care

12

FINANCIAL

23

Per share data (Yen)
Net income

188.24204.44

Lifestyle Refinement› part 5

CrystalCash dividends applicable to the year

50.00

50.00

Price earnings ratio (Times)

43.35

44.22

Price cash flow ratio (Times)

17.55

23.94

Price book value ratio (Times)

4.85

4.79

Stock price at year-end (Yen)

8,160

9,040

FINANCIAL

14
14
23

Environmental Efforts

16

Financial Section and Corporate Data18

Ten-Year Summary

18

Management’s Discussion and Analysis

20

Independent Auditors’ Report

29

Financial Data

30

Corporate Data

52

Investor Information

53

Hoya’s Timeline

54

Hoya Directory

55

Note on segment data:
In addition to the review of operations by segment found on
pages 6 through 15 of this annual report, segment-specificdata can be found on pages 22 and 23, in the financial section. The index on the right-hand margin of the page is a
helpful aid.

1

2

ur shareholders
OTo

A Message from the President
In the fiscal year ended March 31, 2002, Hoya Corporation was affected by the bursting of the IT bubble.
Fiscal 2002, particularly the first half, was spent responding to these changes. Increases in manufacturing
efficiency allowed globalization to advance to the next level, and this resulted in a contraction of the role of
our Japanese operations. However, viewing another aspect of globalization, it became clear that Japan willplay an important role in the development of next-generation technology and in product improvement.
Whatever the era, whatever the business environment, Hoya stresses business portfolio management matched to existing conditions. During the fiscal year under review, changes in conditions outside theCompany were significantly more pronounced than forecast, and the Company invested significant energy
in a swift and appropriate response to those changes. Portfolio management allowed us to slow the earnings
decline of the Hoya Group as a whole. Therefore, it can be said that the Company reaped significant benefits from its policies during this term.

Performance
As mentioned above, Hoya was affected by the bursting of the IT bubble. Going into November 2000,
however, faint indications prompted us to take another look at our portfolio and we took appropriate measures early in 2001.
Hoya planned to increase sales and income of the Eye Care field in an effort to offset the declines in
the Information Technology field. In the Eye Care field, we succeeded in measures to increase the weight ofhigh-performance and high-value-added products, and increased both sales and income.
As a result of these efforts, Hoya held consolidated net sales to only a slight decline of 0.6% from the previous term. Consolidated operating income fell 2.7%. Although our actions were insufficient to cover the
declining trend in overall profits, we believe the measures were timely in light of the changes in the conditions
outside the Company. Hoya’s consolidated net income grew 8.6%, because of decreases in other expenses.
Dividends of ¥50 per share were declared for the year, for a consolidated payout ratio of 24.5%.
The consolidated shareholders’ equity to dividend ratio was 2.6%.
Consolidated capital investments totaled ¥19,585 million, largely concentrated in the developmentof next-generation products in the Information Technology field, particularly in the Electro-Optics division.

Management Policies
The Company always tries to consider ways to increase corporate and shareholders’ value in shaping management policies. In June 1995, Hoya introduced an external director system based on its own management
policies.

3

The Company’s board currently consists of six directors, including three from outside thecompany: Takeo Shiina, Senior Advisor of IBM Japan, Ltd., from the electronics industry; Naotaka
Saeki, Senior Advisor of UFJ Bank, Limited, from the financial industry; and Yuzaburo Mogi, President
and CEO of Kikkoman Corporation, from the consumer products industry. All three of the external
directors are experts in fields related to Hoya’s businesses. Hoya’s management composes corporate
strategies based on recommendations of the board.
In order to increase corporate value, Hoya adopted three key precepts as the pillars of its management policies. First, that it is necessary to properly manage each separate sector of operations and tocombine revenues; second, that it is vital not to miss the proper moment to react to changes in the environment; and third, that it is important to make structural changes to strengthen enterprise as a whole.
With regard to the first and second of these precepts, Hoya practiced management policies tailored to the conditions the Company encountered during the fiscal year under review, and this allowed
the Company to meet objectives. Business portfolio management is not limited to individual businessareas—such as with increases in the Eye Care field that offset declines in the Information Technology
field—but extends to an exacting scrutiny of all key factors, including region and the competitiveness of
our products in the marketplace.
A close look at one of those key factors, region, led us to concentrate resources in regions
where they would lead to growth in revenues and profits, and to scale back operations in other regions.
The Company also energized operations at several manufacturing bases, achieving enhanced efficiency
in production.
We addressed another key factor, the competitiveness of Hoya products, by seeking to heighten
the strengths of already-competitive products. At the same time, we sought to take the emphasis off products easily impacted by changes in the external conditions, as well as products losing ground to competitors’
wares in the marketplace. This comprehensive scrutiny allowed us to shape our portfolio management.
The changeover to the next generation of products will be made when markets that haveslowed down begin again to grow. We have applied management resources to the development of nextgeneration products in markets that are currently witnessing difficulties, focusing especially on the
Information Technology field.
The third of our key precepts, structural changes, is a little different in approach from the first
two. The structural reforms we are considering are not management strategies that respond to the external conditions, as with the first two key precepts. Instead, we propose continuous changes in the
Company and its operations, designed to result in enhanced competitiveness in the medium term, that isthree to four years ahead.
We must create a consciousness that the base and structure of the Company’s earnings will bedifferent three years from now. It is certain that there will be changes in our operating regions, technological changes, and changes in our relations with our competitors. Looking at factors such as produc-4

tion and marketing locations, the balance of investments, and R&D from a global, medium- to longterm standpoint, we must boost our competitiveness and break with our past mindset, taking a management posture that holds the maintenance and growth of revenues to be indispensable. Our commencement of these reforms was a significant achievement in fiscal 2002. The implementation of structuralreforms will continue indefinitely.

OutlookIn the first half of the fiscal year ending March 31, 2003, it is predicted that markets will take a mild
upswing, but will enter a period of little or no growth in the second half. Rapid changes such as thoseseen in the fiscal year under review are not expected. However, as mentioned above, a variety of structural changes will be seen. We must be prepared to respond to fluctuations in the markets as well as
advances in technological development.
In accordance with these changes, the Company will be required to alter its existing businesses.
Hoya believes that the changes to its business structure implemented in the fiscal year ended March 31,
2002 will allow the Company to remain highly competitive in this endlessly shifting economic environment.
At the same time, it is essential that the Company enter new fields of business. The creation of
new business to drive revenue growth is a perennial topic, and the Company must not neglect thereform of its business portfolio. Noteworthy in this connection are the investments Hoya is making in
the development of next-generation products in the Information Technology field. Development of
next-generation products in fiber-optic communications is progressing, but there will be some time
before that market recovers. Still, fiber optics has significant potential, and may evolve into one of theCompany’s principal engines of growth.
Hoya’s growth in sales and income was interrupted by the deteriorating external conditions in
the fiscal year under review. At the same time, however, our speed in grasping changes in the environment and our employment of the complementary characteristics of the two internal companies toenhance efficiency allowed us to ameliorate the downturn to some extent.
Hoya continues to implement the best and most appropriate policies possible to support revenue maintenance and growth. We ask the continued support of our shareholders in this endeavor.
June 21, 2002

Hiroshi Suzuki, President and CEO

5

Operational Review part

1

I

nformation

Technology

For the fiscal year under review, consolidated net sales in the Information Technology field decreased. Salesof photomasks for liquid crystal displays (LCDs) rose, but sales of other products, such as mask blanks forsemiconductors and optical products declined as a result of the downturn in the global IT sector.

Mask Blanks, Photomasks for Semiconductors and LCD Photomasks
Sales of mask blanks in Europe and North America were affected by poor conditions in the semiconductor market and by our customers’ inventory adjustments. In the Korean and Taiwanese markets, sales ofhigh-precision products for manufacturing phase shift masks and other uses were solid, but sales ofmask blanks declined in comparison to the previous fiscal year. Sales of photomasks also declined as aresult of reduced production by semiconductor manufacturers and persistent demand from customers
for price reductions in the second quarter.
Sales of LCD photomasks, however, showed growth as a result of the shift of computer displays to LCDs and amid domestic competition to develop small- and medium-sized LCDs for use in cellular phones and PDAs. Korean and Taiwanese firms are the primary producers of panels for LCDs,
and are increasing mask sizes. The largest masks are now larger than 1 meter long, and require a highlevel of technological expertise to produce owing to the high resolution demanded. Hoya is particularlycompetent in the production of large-scale, high-resolution products, and commands a large share ofthis market. We will be expanding our sales in this area.
In February 2002, the Company expended some capital resources and commenced shipmentsof high-end mask blanks, such as blanks for next-generation, phase shift masks, produced at its
Nagasaka Plant in Yamanashi Prefecture.
In photomasks, Hoya primarily targets business with Japanese semiconductor manufacturers,
and the Company has installed state-of-the-art production equipment in its Kumamoto Plant to serve
the many semiconductor manufacturers in the Kyushu area of Japan. This is an example of energizing
our operations in accordance with one of our key factors, region.
Hoya will increase its competitiveness by accelerating lead time, and will expand its production
capacity via the installation of more cutting-edge production equipment in the Kumamoto Plant.

Glass Disks for HDDs
Computer manufacturers reduced production through the second quarter of the fiscal year. This necessarily had an effect on sales of glass disks for use in computers, which caused a delay in the deploymentof manufacturing facilities. This, in turn, brought a decline in sales of media products, such as glass substrates with magnetic film coating. As a result, total sales of glass disks declined in comparison with theprevious fiscal year, though the operating ratio was high at plants producing glass substrates, primarily
for notebook computers and desktop PCs.
6

1
pt.

› in your
Photomasks for LCDs

studio7

Photomasks are used to transfer circuit patterns onto glass substrates in the
manufacture of LCDs. Hoya’s products are aimed at high-end color LCD monitors for personal computers.

› in your
Mask Blanks
In manufacturing semiconductors, the circuit patterns are transferred to the silicon wafer using photomasks as a negative and an optical exposure device calleda stepper. Mask blanks are the originals of photomasks and indispensable tosemiconductor production. Hoya commands a 70% share of the world market
for mask blanks.

pc

8Operational Review part2

Hoya is one of the few companies that perform integrated manufacturing of glass disks, fromglass materials to media. By employing this expertise to the maximum extent, it will be possible for us
to take a great leap forward in the competitiveness of both our substrate and media products. To
strengthen the competitiveness of Hoya glass disks, the Company has set a goal of developing next-pt.

Optical Glass2

generation technology after two years, and preparing the necessary manufacturing facilities.

Net sales of optical glass materials and lenses declined as a result of cutbacks in digital camera and camcorder production and inventories, as well as customer demands for price reductions following the
September 11 terrorist attacks in the U.S.
The environment surrounding the optics business has been steadily deteriorating for several
years. The need to respond flexibly to customer demands for lower prices and shorter lead time has created difficulties with regard to the Company’s business structure. Therefore, Hoya executed radical
reforms during the fiscal year under review, implementing a new manufacturing system.
Until recently, the Company conducted integrated manufacturing at its Akishima Plant(Akishima, Tokyo) that covered every stage of production, from the melting of the glass to forming,
grinding and polishing. By dedicating that facility to the melting of the raw materials for glass, while
concentrating the production of aspherical molded lenses and lens forming and polishing in Thailand,
the Company has raised both the operating ratio and the production efficiency at the plants. Since ourcustomers are promoting the shift of their manufacturing bases to Asia, we prepared HOYA OPTICAL(ASIA) CO., LTD. in Hong Kong to administrate marketing, optimal production site and logistics. In
addition, the Company specialized Japan’s manufacturing facility in technology development and highly
difficult products. Not only does this shorten lead time and reduce costs, but it constitutes management
driven by efficiency enhancement through technological ability.

Optical Communications Products
The market for optical communications products continued to cool during fiscal 2002, and net sales inthis area declined significantly. However, major growth is forecast for this market through 2004, andthis is thought to be an area well suited to Hoya’s particular strengths and in which the Company can
successfully compete. In preparation for entering this market, and to enable us to remain strong in thearea, we are continually engaged in R&D with long-term objectives.

Laser Products
In addition to the effect of the Company’s restructuring in this area, North American sales of laser
products for medical use were solid, as were European sales of laser products for chemical science use,and domestic sales to the semiconductor and LCD industries. As a result, net sales in this area werehigher than for the previous fiscal year.

9Operational Review part

3

E

ye

Care

Net sales of the Vision Care division rose, boosted by high-value-added products, as focus-progressive
lenses were driving growth in the European and Asian markets, and sales of high-index lenses were solidin the United States. Sales in Japan, however, were flat as a result of persistently poor economic conditions. The Health Care division was able to increase net sales as a result of the strengthening of its marketing of contact lenses and the contribution of sales of soft intraocular lenses (IOLs).

Vision Care
The Vision Care division showed a solid performance overseas, due both to the expansion of its share ofoverseas markets and to the weakness of the yen. We introduced the HOYALUX Summit Pro, originallydeveloped for the European market, in all our markets. The product now is making a large contribution
to our business in the U.S., in addition to Europe.
The poor conditions in the Japanese market have prolonged a replacement cycle, and discounters called “three-price shops” are putting downward pressure on prices. Conditions are generally
severe, but high-value-added products such as progressive lenses are turning in solid sales. The market
for medium-index lenses was adversely affected by plunging retail prices, but the volume of reasonably
priced standard-index lenses increased, with the result that sales in the Japanese market were virtuallyunchanged from the previous fiscal year.
In the European market, the further integration of the Buchmann Group, which we acquiredin fiscal 2000, and strategic reorganization of our labs resulted in expanding business and rising profitability. The U.S. market turned in solid growth in sales of both progressive lenses and high-index lenses. In Asia, low-priced lenses made in Korea are taking a share of the market, and Hoya increased its
net sales in Asia on the strength of high-value-added products such as our progressive lenses.
The Company has taken measures to increase production efficiency by clarifying the roles of
its mass-production plants and its special processing laboratories (labs). Mass production facilities arelocated in Japan (Itsukaichi Plant, Tokyo), Thailand, China, the United Kingdom and Hungary, supplying lenses worldwide. The Company plans to secure further efficiency in eyeglass lens production as awhole, by specializing its Japanese production facilities in R&D and producing selected products ateach mass production plant.
Hoya’s basic policy is to locate labs in major markets to facilitate customer service. In thecourse of this, the Company will be pursuing its corporate acquisition strategy.
Hoya is unswervingly dedicated to remaining a step ahead of the competition in research anddevelopment. The Company is developing high-value-added products that have evolved, such as progressive and high-index lenses. We also are placing a great deal of emphasis on the development of lenses with superior functions and adding new values to our products.

10

sight11

Plastic lens material allows the production of thin and very flexible lenses. Low
reflective coating technology cuts exposure to harmful ultraviolet rays. Hoya
uses its worldwide network to supply high-value-added products such as progressive lenses, designed using cutting-edge optical technology.

pt.

Eyeglass Lenses

3› in your› in yourIntraocular Lenses
Intraocular lenses (IOLs) are artificial lenses that are used to surgically replace
clouded natural lenses in the eyes of cataract patients. The primary optic part has
a diameter of six millimeters. Including the wire-like loops, overall length is just
12.5 millimeters. Because Hoya’s new Acryfold (photo) can be folded for insertion, a smaller incision can reduce the burden of the patient.

b o dy12

Operational Review part4

In the maturing eyeglass lens market, the aging population may bring an increase in demand
over the long term. On the global scale, not only does this market have great potential, but there aremany regions in which Hoya has only a small presence. The Vision Care division’s basic strategy forachieving growth in profits is to increase its share of the global market for high-value-added products,
with its progressive lenses as the centerpiece of its effort, while at the same time energetically launching
new products in the marketplace.

Health Care
Contact lenses, IOLs and hearing aids are the three main businesses of the Health Care division.
Contact lenses are the division’s principal product, and in this area Hoya has pursued a strategic retail-store expansion strategy, as well as offering products tailored to customers. In recent years,
there has been a trend toward greater use of disposable contact lenses, and Hoya markets lenses that are
optimized for the user’s lifestyle. The Company is promoting its E-System, which offers guarantees
against tearing, loss, changes of eyesight and other contingencies, striving to improve customer satisfaction. High-quality customer service and system products, matched to customer need for high-valueadded products, have fueled the outstanding performance of this division.
Hoya’s marketing strategy has focused on securing store locations on busy streets or in shopping malls while closing stores in upstairs locations, thereby increasing the number of high-performance

Retail sales of bifocal lenses and other products with high function require a sufficient number of
employees who possess a high level of specialized knowledge. The Company, therefore, has establishedthorough in-house training. This expansion strategy, together with a service structure that produces ahigh degree of customer satisfaction, has resulted both in an increase in same-store sales and in overallsolid sales growth.
IOLs are expected to fuel the Company’s growth in the near future. In October 2001, themanufacture of the Company’s Acryfold soft IOLs was approved, and sales have commenced. This
product is Hoya’s first foray into the manufacture and sale of soft IOLs, but it was preceded by a yearslong R&D effort designed to produce a high-value-added product suitable for use throughout theworld. Acryfold is receiving high praise from many quarters, and Hoya will be striving to prepare forthe expansion of its presence in the overseas market.
Sales of hearing aids declined slightly because of adverse economic conditions. However,
Hoya persevered in marketing its high-performance products and pushed aggressive advertising campaigns targeted to specific markets.

13

pt.

shopping mall locations, making it possible to utilize the drawing power of the Hoya brand name.

4

stores without increasing the total number of stores. The Company has emphasized favorable terms inOperational Review part5

L

ifestyle

Re f i n e m e n t

In the market for crystal products, weak consumption has become a feature of the landscape, and thedecline in commercial demand has been particularly severe. Market conditions for the division continue
to worsen year by year, and sales have fallen. In response to the changes in the environment, the Crystal
division has adopted “contributing to the Hoya Group” as its principal motto, and is seeking to gear its
business to that theme.

CrystalThe market for crystal products can be broadly divided into four categories: corporate gifts, which
involve formal gifts between companies; social gifts, which center on “thank you” gifts to acknowledge
expressions of condolence or other social situations; personal gifts, involving private gift giving; andhousehold demand.
Of these, the personal gift and household demand markets remain quite small, and accountfor only 10% of the Crystal division’s net sales. The corporate and social gift markets account for majorparts of the division’s sales, but as a result of poor economic conditions, demand has plunged dramatically. This situation set the tone for the fiscal year under review, putting downward pressure on thedivision’s revenues.
Hoya must shift to medium- and high-quality products. The Company is willing to decrease
the scale of products that are receiving harsh competition from East European and Asian manufacturers. The Company is also concentrating resources in creating unique products in which corporate brandcan be emphasized.
Though the business scale of this division is small in relation to the Hoya Group as a whole, we
intend to strengthen its presence in the Group’s business portfolio as a business enhancing the Hoya brand.
There is some distance yet between the current reality of the Crystal division’s situation and
the Company’s vision for the division’s future. But Hoya is considering ways the crystal business canrecover, reconstruct its corporate brand and contribute to the Group.

14› in your
Crystal

pt.

5

world

Since Hoya began production of crystal in 1945, the Company has employed its
superior production technology and craftsmanship to develop a line of products
bursting with originality, and to market them to the world.

15

E

nvironmental

Efforts

In the 21st century, it has become necessary to give more consideration to the global environment.
These are not matters in which a company can take shortcuts, and Hoya is strongly aware of the needto make these important management issues a top priority. This consciousness led Hoya to establish
pollution-control committees at each of its factories in 1976. The Company has been continuously
involved in environmental protection activities since that time. During the fiscal year under review, we
implemented environmental accounting at all of our domestic locations, in accordance with Ministry of
the Environment guidelines.

Specific Efforts(A) Reducing Influence on Environment
There are four areas in which Hoya is striving to reduce its environmental influence per unit of net
sales: energy consumption, water usage, waste volume, and volume of packaging materials.
1. Energy Consumption
The Company has implemented a thorough energy conservation program. At the facilities level, Hoya isensuring that all buildings are properly insulated, and is converting all pumps and clean room air-conditioning motors to highly efficient inverter-type equipment. At the human-environment level, temperature control and efficient lighting systems are saving energy. Converting energy to its equivalent in crudeoil, the Company saved approximately 6,000 kiloliters as compared with the previous fiscal year, but
the ratio of energy consumption to net sales rose by about 3%.
2. Water Usage
Increased water recycling at the Company’s factories helped lower the ratio of water usage to net sales
by approximately 2% from the previous fiscal year.
3. Waste Volume
As a result of the recycling of concrete sludge, the thermal recycling of waste plastic, the reuse of organic solvents, and the installation of wet-garbage treatment equipment at two plants, the ratio of waste
volume to net sales fell by about 26% from the previous fiscal year.
4. Volume of Packaging Materials
Styrene foam has been replaced by polyethylene terephthalate (PET) as packing material for specialorder lenses. All of our retail stores recycle or reuse packing materials through our Green Network
Communications, and all cardboard boxes used to package our products are reusable. Through thesemeasures, the ratio of the volume of packaging materials to net sales significantly declined from the previous fiscal year.
(B) Implementing an Environmental Management System (ISO 14001 Certification)
Hoya submitted its Environmental Management System for ISO 14001 certification in October 1996. In
the fiscal year ended March 31, 2002, two more sites were certified, bringing the Company’s total number of certified sites to 29.

16Waste Volume and Its Ratio to Net Sales

Energy Consumption (Oil Conversion*) and
Its Ratio to Net Sales[Oil Conversion kl]

1999

2000

2001

[Ratio to net sales(1999=100)]

[Ton]

2002

80,000

1999

2000

2001

[Ratio to net sales(1999=100)]

2002

100

100

80

80

60,0006,000

60

40,0004,000

40

20,000

2,000

0

0

Energy consumption

78,37879,06881,03474,961

Waste volume

5,721

4,241

4,400

2,911

Ratio to net sales

100.0

101.1

86.8

89.7

Ratio to net sales

100.0

74.3

64.6

47.8

*Based on the oil conversion factor of the Energy Consumption Law (lawregarding rationalization of energy consumption).

Water Use and Its Ratio to Net Sales
[km3]

1999

2000

Packaging Materials and Their Ratio to Net Sales

2001[Ratio to net sales(1999=100)]

[Ton]

2002

2000

2001

[Ratio to net sales(1999=100)]

2002

100

100

80

80

60

3,000

1999

3,000

2,000

2,000

1,000

1,000

0

60

0

Water use

2,481

2,498

2,399

2,103

Packaging materials

2,416

2,130

1,859

1,423

Ratio to net sales

100.0

100.9

81.2

79.6

Ratio to net sales

100.0

88.3

64.6

55.4

ISO 14001 Certification Status (As of March 31, 2002)
Company Name (Location)

Site (Date of Certification)

Site (Date of Certification)

HOYA LENS DEUTSCHLAND GmbH (Germany)

Müllheim (Dec. 4, 1997)

HOYA CORP. (Japan)

Nagasaka Plant (Jan. 27, 1999)

HOYA LENS DEUTSCHLAND GmbH (Germany)

Mönchengladbach (Dec. 4, 1997)

HOYA CORP. (Japan)

Akishima Plant (Jan. 29, 1999)

HOYA LENS DEUTSCHLAND GmbH (Germany)

Hamburg (Dec. 4, 1997)

NH TECHNO GLASS CORP. (Japan)

Yokkaichi Plant (Feb. 12, 1999)

HOYA CORP. Vision Care Company (Japan)

Itsukaichi Plant (Feb. 20, 1998)

HOYA CORP. (Japan)

Hachioji Plant (Feb. 22, 1999)

HOYA CORP. Vision Care Company (Japan)

Hamura Lab. (Apr. 30, 1998)

KOREA OPTICAL GLASS CO., LTD. (Korea)

Masan (Feb. 25, 2000)

HOYA CORP. Vision Care Company (Japan)

Minakuchi Lab. (May 5, 1998)

HOYA MAGNETICS SINGAPORE PTE LTD. (Singapore)

Singapore (Mar. 3, 2000)

HOYA HEALTH CARE CORP. (Japan)

Kodama R&D Lab. (Dec. 2, 1998)

HOYA OPTICAL TAIWAN CO., LTD. (Taiwan)

Taichung (Sep. 19, 2000)

HOYA GLASS DISK (THAILAND) LTD. (Thailand)

Lamphun (Nov. 24, 2000)

Eye CareKumamoto Plant (Dec. 12, 1998)

HOYA LENS UK LTD. (United Kingdom)

Wrexham (Dec. 24, 1999)

HOYA LENS ITALIA S.P.A. (Italy)

Milano (Dec. 29, 1999)

HOYA LENS THAILAND (Thailand)

Ayuttaya (Jan. 20, 2000)

HOYA-SCHOTT CORP. (Japan)

Company-wide (Dec. 20, 2000)

HOYA LENS GUANGZHOU LTD. (China)

Guangzhou (Nov. 9, 2000)

HOYA CORP. Electro-Optics Company (Japan)

Nagano Plant (Jan. 5, 2001)

MALAYSIAN HOYA LENS SDN BHD. (Malaysia)

Kuala Lumpur (Apr. 9, 2001)*

HOYA OPTICS CORP. (Japan)

Kofu Plant (Jan. 5, 2001)

HOYA LENS NEDERLAND B.V. (Netherland)

Ui thoorn (Nov. 1, 2001)*

HOYA OPTICS CORP. (Japan)

Iruma Plant (Jan. 30, 2001)

HOYA OPTICS (THAILAND) LTD. (Thailand)

Lamphun (Feb. 21, 2001)

HOYA CRYSTAL CORP. (Japan)

Musashi Plant (Dec. 4, 1998)

Note: 1. The Akishima Plant includes the HOYA OPTICS CORPORATION and R&D center
located on the grounds.
2. *shows site that attained the certification during the fiscal year under review.

17

LifestyleRefinement

Information Technology

Company Name (Location)
HOYA CORP. (Japan)

Notes:
1.Ratio to net sales is indicated based on
1999=100.
2.Statistics of the 13 domestic production sites
Hoya Corporation:
Nagasaka
Hachioji
Kumamoto
Akishima
NaganoItsukaichi
HamuraMinakuchi
Hoya Optics Corporation: Akishima
Kofu
Iruma
Hoya Crystal Corporation: Musashi
Hoya Health Care Corporation:
KodamaF

inancialSection andC orporate D ata

Ten-Year Summary(Millions of yen)

1993

1994

1995

1996

¥139,758¥134,473¥151,470¥167,106

Operating income

14,575

14,232

21,03826,229Ordinary income

13,875

12,87821,001

27,376

Net income

5,296

6,119

8,812

11,056

Selling, general and administrative expenses/net sales (%)

29.6

28.9

29.9

29.6

Return on assets (%)

2.7

3.2

4.8

5.7

Return on equity (%)

4.8

5.5

7.6

9.0

Inventory turnover (Months)

4.0

4.0

3.5

3.2

Financial leverage (Times)

1.8

1.6

1.6

1.6

Capital investment

10,718

10,2259,304

19,439Depreciation and amortization

13,776

13,81913,56513,018

4.0

4.5

4.0

4.5

Net income

45.61

52.69

75.88

95.21

Cash flows

164.24171.70192.70207.31

Shareholders’ equity

951.75972.001,026.03

1,084.43

Price earnings ratio (Times)

36.18

33.59

31.63

38.65

Price cash flow ratio (Times)

10.05

10.31

12.45

17.75

Price book value ratio (Times)

1.73

1.82

2.34

3.39

Stock price at year-end (Yen)

1,650

1,770

2,400

3,680

Net sales

Research and development expenses (Billions of yen)
Per share data (Yen):

18

1997

1998

1999

2000

2001

2002

¥193,402¥193,473¥201,290¥201,110¥236,802¥235,265

32,936

26,39531,726

34,68845,12843,898Operating income

35,086

26,75933,61235,484

48,18445,774

Ordinary income

15,30012,348

17,837

20,716

21,86023,741

Net income

27.7

28.2

26.4

25.4

23.8

24.2

SG&A expenses/net sales

7.1

5.3

7.8

8.9

8.6

8.7

Return on assets

11.4

8.5

11.6

12.4

11.8

11.5

Return on equity

3.2

3.4

3.2

3.3

3.1

3.2

Inventory turnover

1.7

1.6

1.4

1.4

1.4

1.3

Financial leverage

32,31819,504

13,654

17,77039,673

19,585

Capital investment

15,705

17,57018,234

16,051

32,138

20,105

Depreciation and amortization

6.0

7.5

7.8

7.7

7.3

7.3

Net sales

R&D expenses
Per share data:

131.76106.34

153.60178.39188.24204.44

Net income

267.00257.64

310.61

316.61464.99377.57

Cash flows

1,222.74

1,272.50

1,364.70

1,508.28

1,682.10

1,887.49

Shareholders’ equity

42.05

35.74

43.75

54.38

43.35

44.22

Price earnings ratio

20.75

14.75

21.63

30.64

17.55

23.94

Price cash flow ratio

4.53

2.99

4.92

6.43

4.85

4.79

Price book value ratio

5,540

3,800

6,720

9,700

8,160

9,040

Stock price at year-end

19

Management's Discussion and Analysis
Scope of Consolidation
The Hoya Group includes Hoya Corporation and its 51 consolidated subsidiaries (seven domestic and 44 overseas), as well as six
domestic affiliates (two of which are accounted for by the equity
method).
This includes a net total of five consolidated subsidiaries added
during the fiscal year under review. Of these, three are newly established firms, while two others became consolidated subsidiaries from equity-method affiliates as a result of an increase in Hoya’sequity in those firms. In addition, Hoya gained one domestic subsidiary as a result of the split-up of a division from a subsidiary,
and another through the acquisition of an overseas firm. However, the total number decreased by two as a result of the mergerof some overseas subsidiaries.
The Company has two fewer affiliates than in the previous fiscal year, as HOYA-OPTIKSLIP AB (which changed its company
name to HOYA LENS SWEDEN AB in April, 2002) and THAIHOYA LENS LTD., both of which, as mentioned above, had been
equity-method affiliates, became consolidated subsidiaries as a result of Hoya’s enlarged equity stake in those firms.
Net Sales
Consolidated net sales for the fiscal year ended March 31, 2002,edged down 0.6% to ¥235,265 million. Compared with the previous fiscal year, net sales in the Information Technology field fell
9.7%, but the Eye Care Company achieved 9.4% sales growth. As
a result, total net sales for the Group were virtually unchanged
from the previous fiscal year.
Domestic sales declined 3.6% to ¥132,248 million, while overseas sales grew 3.4% to ¥103,017 million. This represents a 1.7
percentage point contraction in the share of domestic net sale as a

Net sales

percentage of total net sales, to 56.2% from 57.9% in fiscal 2001.
The share of overseas net sales as a percentage of total sales showeda corresponding 1.7 percentage point rise, to 43.8% from 42.1%.
The declining trend of the yen in comparison to a basket ofinternational currencies intensified, with the yen falling 13.2%
against the U.S. dollar, to ¥125.89, 10.5% against the euro, to¥110.98, and 6.8% against the Thai baht, to ¥2.83.
A year-on-year comparison of fiscal 2002 with the previous fiscal
year shows quarterly net sales up 7.1% in the first quarter, down
2.2% in the second, down 5.7% in the third, and 1.3% lower in the
fourth. A quarter-on-quarter comparison of fiscal 2002 with the immediately preceding quarter shows a 0.4% decline in the first quarter, a 3.8% decrease in the second, and a 1.6% contraction in thethird, but a turnaround in the fourth to post 4.8% growth.
Net Income
Since net sales were virtually unchanged in comparison to the previous fiscal year, while cost of sales was ¥134,258 million, thisterm’s 57.1% cost of sales ratio was also about even with lastterm’s level. Selling, general and administrative expenses rose 1.3%
to ¥57,109 million, and the ratio of SG&A to net sales increased
to 24.3% from 23.8% in the previous fiscal year. R&D expenses
were ¥7,289 million, and the ratio of R&D expenses to net sales
was unchanged at 3.1%.
Chiefly as a result of the increase in the ratio of SG&A to net
sales, operating income slid 2.7% to ¥43,898 million, and theoperating income margin declined 0.4 percentage point to 18.7%.
Looking at the operating income margin by quarter, the first quarter showed 19.3%, the second 19.4%, the third 17.7%, and thefourth 18.4%.

Operating Income, Ordinary Income
and Net Income(Millions of yen)
240,000

1998

1999

2000

2001

(Millions of yen)
50,0002002

200,000

1998

1999

2000

2001

2002

40,000160,000

30,000120,000

20,00080,00010,00040,0000

Net sales (Millions of yen)

0

193,473 201,290 201,110 236,802 235,265

Operating Income

26,395 31,726

34,688 45,128 43,898

Ordinary Income

26,759 33,612

35,484 48,184 45,774

Net Income

12,348 17,837

20,716 21,860 23,741
20

NH Technoglass Co., Ltd., founded through equal investment
by Hoya and Nippon Sheet Glass Co., Ltd., has a plant that produces liquid crystal display glass substrates in Yokkaichi, Mie Prefecture. We deeply regret to report that, during this term, there
was an incident in which dust containing arsenic trioxide was
emitted from the plant. Hoya’s portion of NH Technoglass’s loss
in that connection, approximately ¥200 million, was posted against
equity in earnings of associated companies. After the incident, alloperations at the plant were halted while steps were taken to prevent a recurrence. The plant’s divisions resumed operations once
they were able to confirm the safety of their respective areas.
Consolidated net income grew 8.6% to ¥23,741 million in thefiscal year under review. Extraordinary losses of ¥8,700 million
were posted in connection with losses on sales of marketable secu-(Millions of yen)

Quarterly Net Sales

2001-1Q

2001-2Q

rities, retirement and severance payments in connection with structural reforms, losses on liquidation of fixed assets, and expenses
arising from the temporary plant closure. In the previous fiscal
year, the Company posted an extraordinary loss of ¥17,087million that included ¥14,347 million of goodwill amortization fromcertain U.S. subsidiaries. In the fiscal year under review, amortization of goodwill totaled ¥469 million, a significant drop that allowed the Company to post its highest net income ever. Despite
the fact that extraordinary losses were posted, net income per sharerose ¥16.20, to ¥204.44 from ¥188.24 in the previous fiscal year.
Return on assets (ROA) rose by 0.1 percentage point to 8.7%, but
return on equity (ROE) slipped 0.3 percentage point to 11.5%.
Dividends remained steady at ¥50.00 per share.

2001-3Q

2001-4Q

2002-1Q

2002-2Q

2002-3Q

2002-4Q (%)

120,000

30.0

90,00015.0

60,0000

April 2000 to March 2002
30,0000

Net sales (Millions of yen)

56,32359,37260,52960,57860,321

58,03757,08859,819Operating income ratio (%)

17.5

20.2

20.0

18.4

19.3

19.4

17.7

18.4

Ordinary income ratio (%)

18.0

21.8

21.0

20.4

20.1

18.2

19.9

19.6

Return on sales (%)

11.1

12.6

12.9

0.6*

12.4

10.7

9.0

8.3

* The worsening of return on sales for the fourth quarter of the fiscal year ended March 31, 2001, was due to the recording of an extraordinary loss that included ¥14,347 million of theamortization of goodwill accompanying the integration of U.S. subsidiaries.

(Millions of yen)
16,0002001-1Q

2001-2Q

2001-3Q

2001-4Q

2002-1Q

2002-2Q

2002-3Q

2002-4Q

Operating income (Millions of yen)

9,885

11,987

12,09011,166

11,613

11,234

10,068

10,983
11,166

Ordinary income (Millions of yen)

10,146

12,967

12,695

12,376

12,124

10,573

11,36812,376
11,709Net income (Millions of yen)

6,233

7,458

7,805

364*

7,468

6,192

5,142

4,939
364

12,000Quarterly Profits

8,000

April 2000 to March 2002
4,000

0

* Net income of ¥364 million for the fourth quarter of the fiscal year ended March 31, 2001, was due to the recording of an extraordinary loss that included ¥14,347 million of theamortization of goodwill accompanying the integration of U.S. subsidiaries.

21

Review by Segment»Eye Care (Vision Care Division)
The Vision Care division turned in solid performance, withgrowth in both sales revenues and profits. In comparison to
the previous fiscal year, when results were boosted substantially by the Company’s acquisition of U.S.-based Optical Resources Group, Inc. (ORI), consolidated net sales rose 8.1% to¥93,184 million in the fiscal year under review. This division’sshare of the Company’s consolidated net sales rose to 39.6%
from 36.4% in the previous fiscal year.
Operating income grew by 36.0% to ¥14,413 million. Byquarter, the operating income ratio was 15.4% in the first quarter, 15.1% in the second, 13.3% in the third, and 17.9% in the
fourth. For the fiscal year, this segment’s operating income ratio rose to 15.5% from 12.3% in the previous term.
The net sales growth rate declined to 8.1% from 20.1% a
year ago. On the graph below, the area of the circle representing this segment’s volume of operating income shrank slightly.
At the same time, though, because operating income rose substantially, that circle grew in size and moved toward the positive range on the abscissa, with the operating income ratio rising by 3.2 percentage points. This segment is now moving froma stage in which growth is emphasized to one in which primary stress is on profitability. Even though growth in sales issomewhat sluggish, it can be thought that stability should beemphasized for the sake of overall business growth.
Capital expenditures in this division were unusually high infiscal 2001 as a result of the acquisition of ORI and, accordingly, declined 76.4% to ¥5,259 million for the fiscal year under review.

»Information Technology (Electro-Optics Division)
Net sales in the Electro-Optics division fell 9.7% to ¥101,496
million, dropping to 43.1% of total net sales from 47.4% in
the previous fiscal year. The division’s operating income sank
20.2% to ¥27,789 million. The ratio of operating income tosales was 28.0% in the first quarter, 28.2% in the second quarter, 26.4% in the third quarter, and 26.2% in the fourth. Thisratio worsened steadily following its peak in the second quarter, and for the fiscal year as a whole was 27.3%, down from
30.8% in the previous fiscal year.
The net sales growth rate fell to a negative 9.7% from a
positive 24.6% in the previous fiscal year. The graph labeled“Sales Growth and Profitability by Business Segment” on thispage shows that the share of this segment has shrunk markedly, falling below the Company average of negative 0.6% on
the ordinate axis (which shows the net sales growth rate). Operating income, as well, shows a significant decline, with thecircle representing its volume of the total shrinking by 20.2%.
Because the operating profit ratio declined by 3.5 percentage
points, this circle trended downward on the abscissa. However, this segment’s operating profit ratio is well above the Company average of 18.7%, and this sector can be said to havebeen a pillar of the Company’s profits again this fiscal year.
Capital expenditures in the division were reduced by 12.8%
to ¥13,280 million, as the Company narrowed its focus to thedevelopment of next-generation products. This segment accounted for 67.8% of the Group’s total capital investments.

Sales Growth and Profitability by Business Segment
Fiscal year ended March 31, 2002 (Compared with the previous fiscal year)
Size of circle shows the volume of operating income.

50

Electro-Optics

Company-wide ratio

Sales Growth Ratio (%)

35

20

5
0

Company-wide ratio

Service-10-25

Vision Care

Health Care

Crystal

0

5

10

15

20

25

30

35

40

Operating Income Ratio (%)

22»Lifestyle Refinement (Crystal Division)
Consolidated net sales in the Crystal division dropped 11.6%
to ¥8,788 million. As a percentage of the Company’s total net
sales, this represents a decline to 3.7% from 4.2% a year ago.
The division posted an operating loss of ¥1 million, comparedwith income of ¥285 million in the previous fiscal year.
The net sales growth rate worsened to negative 11.6% fromnegative 5.5% in the previous fiscal year, and this, together
with the operating loss, caused the division’s position on thecircle graphs to trend toward the negative range on the ordinate, and the division’s circle itself to disappear. On the abscissa, which represents the ratio of operating income to net
sales, the division’s circle is just above the 0% level.
Profitability is the most pressing issue for this division. Distortions in the industry structure have produced an environment in which a firm can no longer expect to succeed in improving profitability just by expanding its sales. The first priority is setting the optimum level for sales, and steadily securing profits. This division’s goal now is to achieve an ordinary
income ratio of 10%, and it is proceeding with reforms to its
business structure. The division’s future issues are clear fromthe graph on page 22. First, it needs to become profitable toget on the graph at all. Then, the division has to trend upwardon the ordinate by expanding its net sales. After that, it needs
to move rightward on the abscissa by getting its profit ratios
up.
Capital expenditures in this division declined to ¥254 million from ¥610 million in the previous fiscal year.

»Eye Care (Health Care Division)
The Health Care division posted 14.8% growth in net sales, to¥23,106 million. The division’s share of total net sales increased
to 9.8% from 8.5% in the previous fiscal year. Operating income jumped 42.6% to ¥3,429 million. Operating income ratios by quarter were 12.9% for the first quarter, 14.7% for thesecond, and 16.0% for the third. In the fourth quarter, operating income ratio dropped to 13.6%. For the fiscal year, theoperating income ratio was 14.3%, up from 11.1% in the previous fiscal year.
This division’s net sales growth rate showed a remarkableincrease, rising to 14.8 % from 3.1% a year ago. The positionof the circle on the graph on page 22 representing this division’s
net sales has improved significantly, and the circle representing operating income shows substantial growth. The circle ismoving toward the positive range on the abscissa, and the ratio of operating income to net sales increased by 3.2 percentage points, as the division showed growth across the board.
Capital expenditures in this division were reduced by 39.6%
to ¥687 million.

Sales Growth and Profitability by Geographical Segment
Fiscal year ended March 31, 2002 (Compared with the previous fiscal year)
Size of circle shows the volume of operating income.
Company-wide ratio

50

Sales Growth Ratio (%)

35

Japan
Europe20

North America
5

Asia

0

Company-wide ratio

-10

-25

0

5

10

15

20

Operating Income Ratio (%)

23

25

30

35

40

Information Technology (Electro-Optics Division)(Millions of yen)
120,000

2000

2001

Eye Care (Vision Care Division)(Millions of yen)
100,000

2002

100,000

2000

2001

2002

80,00080,00060,00060,00040,00040,00020,00020,0000

0

Net sales

90,174112,341

101,496

Net sales

71,75486,19893,184

Operating income

22,591

34,81527,789Operating income

11,658

10,601

14,413Return on sales (on total sales)

24.9%

30.8%

27.3%

Return on sales (on total sales)

16.2%

12.3%

15.5%

Assets

94,875112,257

111,806

Assets

67,957

83,34392,309Depreciation

10,040

10,29912,687

Depreciation

4,432

5,987

5,516

Capital expenditures

12,266

15,23013,280Capital expenditures

4,552

22,287

5,259

2000

2001

2002

10,516

9,942

8,788

775

285

(1)

Eye Care (Health Care Division)(Millions of yen)
24,000Lifestyle Refinement (Crystal Division)

2000

2001

(Millions of yen)
15,0002002

20,00012,50016,00010,00012,000

7,500

8,000

5,000

4,000

2,500

0

0

Net sales

19,541

20,13023,106

Net sales

Operating income

2,453

2,405

3,429

Operating income (loss)

Return on sales (on total sales)

11.7%

11.1%

14.3%

Return on sales (on total sales)

7.4%

2.9%

—

Assets12,504

13,366

15,816

Assets

10,062

9,828

8,684

Depreciation

472

479

554

Depreciation

626

552

498

Capital expenditures

259

1,138

687

Capital expenditures

460

610

254

Notes: 1. The return on sales above is the operating income margin calculated on net sales plus intersegment sales. Please refer to details on
page 48 Segment Information.
2. Data of Information Technology doesn’t include Photonics division.

24

(% of total)
100

1998

1999

2000

2001

2002

43.2

43.2

44.9

47.4

43.1

4.0
33.4

4.4
34.7

3.6
35.7

2.8
36.4

11.0

9.7

9.7

6.4
2.0

6.1
1.9

5.2
0.9

8.5
4.2
0.7

3.7
0.7

83,507

86,94390,174112,341

101,496

80

60

Sales
by Business Segment

3.1
39.6

40

20

0

Electro-Optics (Millions of yen)

9.8

Photonics(Millions of yen)

7,797

8,793

7,248

6,534

7,157

Vision Care

(Millions of yen)

64,541

69,85871,75486,19893,184

Health Care

(Millions of yen)

21,363

19,552

19,541

20,13023,106

Crystal(Millions of yen)

12,352

12,267

10,516

9,942

8,788

Service(Millions of yen)

3,912

3,877

1,877

1,657

1,534

1998

1999

2000

2001

2002

73.3

71.8

73.4

71.3

67.8

4.6
10.2

4.1
11.6

4.0
11.5

3.7
10.5

11.9

12.5

11.1

(% of total)
100

80

60

Sales
by Region

40

20

4.2
12.3

14.5

15.7

159,368

0

Japan(Millions of yen)

141,756

144,516

147,553

168,856

Asia(Millions of yen)

9,019

8,357

8,076

8,792

9,948

Europe(Millions of yen)

19,73423,303

23,10924,94428,964

North America (Millions of yen)

22,964

25,114

22,372

34,21036,985

1998

1999

2000

2001

2002

67.5

61.1

63.1

57.9

56.2

12.2

12.1

(% of total)
100

80

60

Sales to DomesticandForeign Customers

40
8.2
20

11.6
15.2

11.6

14.0

13.8

12.7

12.7

11.0

10.7
16.2

15.3

16.9

0

(Millions of yen)

130,524

123,062

126,844

137,211132,248

Asia and Other Areas (Millions of yen)

15,82524,52524,326

27,53725,127

Europe(Millions of yen)

22,54428,067

27,84135,87038,144

North America(Millions of yen)

24,58025,63622,09936,18439,746Japan

25

Financial Position
Cash and cash equivalents increased 28.3% to 66,321 million.
This was primarily due to marketable securities sold totaling¥7,000 million as well as the factors described in the “Consolidated Statements of Cash Flows,” though transfers of notes
and accounts receivable trust declined ¥10,356 million after
the Company suspended sales of notes and accounts receivable trusts in May 2001,
Current assets increased 9.6% to ¥169,587 million, fixed
assets declined 3.9% to ¥108,481 million, and total assets grew
3.9% to ¥278,068 million.
Current liabilities fell 20.3% to ¥49,114 million, principally
as a result of decreases in notes and accounts payable, shortterm loans and income taxes payable. Long-term liabilities
declined 3.8% to ¥9,618 million, chiefly as a result of a payment of retirement benefits in accordance with the Company’sreforms, which resulted in a reduction in liability for retirement benefits. Thus, total liabilities contracted by 18.0% to¥58,732 million. The Company’s degree of indebtedness edged
down by 0.5 percentage point to 1.4%, as interest-bearing debt
was reduced by ¥1,107 million to ¥3,947 million.
Retained earnings increased 9.7% to ¥202,255 million. The
equity adjustment from foreign currency translation, which is(Millions of yen)
40,000a debit item against equity, decreased by ¥5,344 million to¥5,331 million, contributing to a 12.2% rise in total shareholders’ equity to ¥219,180 million. The equity ratio rose 5.8
percentage points to 78.8%.
Cash FlowsNet cash provided by operating activities totaled ¥41,023
million. This was chiefly composed of income before income
taxes of ¥37,588 million, depreciation and amortization (including ¥469 million of goodwill amortization) of ¥20,105 million, and income taxes of ¥15,395 million.
Net cash used in investing activities totaled ¥19,654 million,
primarily consisting of purchases of property, plant and equipment totaling ¥19,001 million, that focused on capital investment in the Electro-Optics division.
Net cash used in financing activities totaled ¥8,186 million,
primarily in the form of repayment of short-term loans andpayment of dividends.
In aggregate, cash and cash equivalents at the end of theyear increased by ¥14,623 million to ¥66,321 million. It is theCompany’s policy to employ cash and cash equivalents in investments aimed at maximizing corporate value and spurring
renewed growth.

1998

1999

2000

2001

2002

19,504

13,654

17,77039,673

19,585

1998

1999

2000

2001

2002

30,000Capital Investment

20,00010,0000Capital investment (Millions of yen)

(Millions of yen)
10.0

Research and Development
Expenses

(%)

4.0

7.5

3.0

5.0

2.0

2.5

1.0

0

0

R&D expenses (Billions of yen)

7.5

7.8

7.7

7.3

7.3

R&D expenses/net sales (%)

3.9

3.9

3.8

3.1

3.1

26

Total Assets, Shareholders’ Equity and ROE(Millions of yen)
300,000

1998

1999

2000

Cash Flows

2001(Millions of yen)
60,000

(%)
15.0

2002

250,000

10.0

50,000200,000

5.0

40,000150,000

0

30,000100,000

20,00050,00010,000

0

1998

1999

2000

2001

2002

0

Total assets

234,487 224,335 239,341 267,611 278,068

Depreciation andamortization

17,570 18,234

16,051 32,138 20,105

Shareholders’ equity

147,768 158,473 175,146 195,333 219,180

Net income

12,348 17,837

20,716 21,860 23,741

Cash flows

29,918 36,071

36,767 53,998 43,846

ROE (%)

8.5

11.6

12.4

(%)
80

11.8

11.5

1998

1999

2000

2001

2002

63.0

70.7

73.2

73.0

78.8

75

70

Shareholders’ Equity Ratio
65

60

55

Shareholders’ equity ratio (%)(Millions of yen)
20,0002001-1Q

2001-2Q

2001-3Q

2001-4Q

2002-1Q

2002-2Q

2002-3Q

2002-4Q

Depreciation and amortization (Millions of yen)

3,992

4,327

4,484

19,335

4,435

4,718

4,932

6,020

Net income (Millions of yen)

6,233

7,458

7,805

364*

7,468

6,192

5,142

4,939

Cash flows (Millions of yen)

10,225

11,785

12,28919,69911,903

10,91010,074

10,95915,000Quarterly Cash Flows

10,000April 2000 to March 2002
5,000

0

* Net income of ¥364 million for the fourth quarter of the fiscal year ended March 31, 2001, was due to the recording of an extraordinary loss that included ¥14,347 million of theamortization of goodwill accompanying the integration of U.S. subsidiaries.

27

(Times)
100

1998

1999

2000

2001

2002

(Yen)
10,000

80

8,000

60

6,000

40

4,000

20

2,000

0

0

Stock Price Data

Price earnings ratio (Times)

35.74

43.75

54.38

43.35

44.22

Price cash flow ratio (Times)

14.75

21.63

30.64

17.55

23.94

Price book value ratio (Times)

2.99

4.92

6.43

4.85

4.79

Stock price at fiscal year-end (Yen)

3,800

6,720

9,700

8,160

9,040

1998

1999

2000

2001

2002

Period-end dividend (Yen)

14.00

16.00

19.00

30.00

25.00

Interim dividend (Yen)

14.00

14.00

16.00

20.00

25.00

Total dividend (Yen)

28.00

30.00

35.00

50.00

50.00

1998

1999

2000

2001

2002

27.4

24.6

39.0

33.7

41.8

45.0

48.2

15.4

15.8

12.2

11.4

(Yen)
60
50
40

Dividend Per Share

30
20
10
0

(%)
100

80

60

Group Employees
by Region

43.0

40

43.7
42.9

20

0

12.9
2.4

13.9

19.3

3.4

4.0

9,320

9,414

10,651

12,966

13,311

Japan

3,896

3,667

3,595

3,553

3,282

Asia

3,999

4,117

4,579

5,838

6,411

Europe

1,198

1,314

2,055

2,000

2,102

227

316

422

1,575

1,516

Total

North America

28Independent Auditors’ Report29

C onsolidated B alance S heets

Hoya Corporation and Consolidated Subsidiaries
March 31, 2002 and 2001

Thousands of
U.S. Dollars(Note 1)Millions of Yen

ASSETS

CURRENT ASSETS:
Cash and cash equivalents (Note 4)
Notes and accounts receivable:
Unconsolidated subsidiaries and associated companies (Note 14)
Other—trade (Note 6)
Other
Allowance for doubtful receivables
Inventories (Note 7)
Deferred tax assets (Note 11)
Prepaid expenses and other current assets (Note 14)
Total current assets
PROPERTY, PLANT AND EQUIPMENT:Land
Buildings and structures
Machinery and vehicles
Furniture and equipment
Rental equipment
Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment
INVESTMENTS AND OTHER ASSETS:
Investment securities (Note 5)
Investments in unconsolidated subsidiaries and associated companies
Goodwill
SoftwareRental deposits
Deferred charges
Long-term accounts receivable
Deferred tax assets (Note 11)
Other assets
Allowance for doubtful receivables
Total investments and other assets

TOTAL

2002

2001

2002

¥ 66,321¥ 51,698

238
58,924
2,697(1,393)35,596
3,615
3,589

361
54,782
4,453(1,059)36,506
4,500
3,523

1,789
443,038
20,278(10,474)
267,639
27,181
26,985

169,587

154,764

1,275,090

9,445
54,135
138,252
20,54371,015407,030
1,039,489
154,459

4,129

9,033
50,835
126,62118,8404,749
3,251

226,504(141,232)

213,329(128,850)

1,703,038(1,061,895)

85,272

84,479641,143

1,055
4,761
887
2,529
2,907
429
1,573
7,411
3,237
(1,580)

4,915
4,827
1,176
2,361
3,076
486
3,276
8,655
2,953
(3,357)

7,932
35,797
6,669
19,01521,8573,226
11,82755,722
24,339(11,880)

23,20928,368

174,504¥ 278,068¥ 267,611$ 2,090,737$

498,654

31,045

See notes to consolidated financial statements.

30

Thousands of
U.S. Dollars(Note 1)Millions of Yen

LIABILITIES AND SHAREHOLDERS’ EQUITYCURRENT LIABILITIES:
Short-term bank loans (Note 8)
Current portion of long-term bank loans (Note 8)
Notes and accounts payable:
Unconsolidated subsidiaries and associated companies (Note 14)
Other—trade
Construction and other
Income taxes payable (Note 11)
Accrued bonuses to employees
Accrued expenses
Other current liabilities (Note 14)
Total current liabilities

LONG-TERM LIABILITIES:Long-term bank loans, less current portion (Note 8)
Liability for retirement benefits (Note 9)
Other long-term liabilities
Total long-term liabilities
MINORITY INTERESTS

2002

¥

3,306
73

2001

¥

2002

4,570
61

$

24,857549

29
19,889
5,568
4,868
3,882
9,488
2,011

92
23,518
7,533
9,680
4,023
9,969
2,195

218
149,541
41,86536,602
29,18871,33815,12049,114

61,641

369,278

569
7,566
1,483

424
8,704
875

4,278
56,887
11,151

9,618

10,00372,316

156

634

1,173

6,264
15,899202,255
110(5,331)

6,264
15,899184,361(516)(10,675)

47,098
119,541
1,520,714
827(40,082)

219,197

195,333

1,648,098

(17)

(0)

(128)

219,180

195,333

1,647,970¥278,068¥ 267,611$ 2,090,737

CONTINGENT LIABILITIES (Notes 13 and 15)
SHAREHOLDERS’ EQUITY (Notes 10 and 17):
Common stock—authorized, 320,000,000 shares;
issued, 116,124,405 shares
Additional paid-in capital
Retained earnings
Net unrealized gain (loss) on available-for-sale securities
Foreign currency translation adjustments
Total
Treasury stock—at cost
2,059 shares in 2002 and 30 shares in 2001
Total shareholders’ equity
TOTAL

31

C onsolidated S tatements of Income

Hoya Corporation and Consolidated Subsidiaries
March 31, 2002, 2001 and 2000

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2002

2001

2000

2002

NET SALES (Notes 13 and 14)¥235,265¥236,802¥201,110$1,768,910

COST OF SALES (Notes 13 and 14)

134,258

135,319

115,338

1,009,459

101,007

101,483

85,772759,451

57,10956,35551,084429,391

43,89845,12834,688330,060

490
(617)
1,033
137
336
(3,118)(479)(1,529)533(469)(1996)
(778)
147

587
(926)
680
126
268
(364)
(1,214)(986)
1,865(14,347)
(176)

417
(724)
(1,185)
264
251

867

(207)

3,684
(4,639)
7,767
1,030
2,526
(23,444)(3,602)(11,496)
4,008(3,526)(15,007)(5,850)1,106(6,310)(13,620)(1,196)(47,443)

INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS

37,58831,50833,492

282,617

INCOME TAXES (Note 11):
Current
Deferred

12,002
1,745

14,720(5,170)13,033(365)

90,241
13,12013,7479,550

12,668103,361

(100)

(98)

(108)

(752)

¥ 23,741¥ 21,860¥ 20,716$ 178,504

2001

2000

1999

¥ 204.44
50.00¥ 188.24
50.00¥ 178.39
35.00

Gross profit
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES(Notes 12, 13 and 14)
Operating income
OTHER INCOME (EXPENSES):Interest and dividend income
Interest expense
Foreign exchange gains (losses)—net
Gain on sales of investment securities
Gain on sales of property, plant and equipment
Loss on sales of investment securities
Loss on write-down of investment securities
Loss on disposal of property, plant and equipment
Equity in earnings of associated companies
Amortization of goodwill (Note 3)
Additional retirement benefits paid to employees
Temporary plant closure expenses
Other income (expenses)—net
Other expenses—net

Total income taxes
MINORITY INTERESTS IN NET INCOME
NET INCOME

(398)
(571)
1,334
(377)

Yen

PER SHARE OF COMMON STOCK (Note 2):
Net income—basic
Cash dividends applicable to the year

U.S. Dollars

2001

$

1.54
0.38

See notes to consolidated financial statements.
32

C onsolidated S tatements of S hareholders’ E quity

IssuedNumber of
Shares ofCommon Stock

BALANCE, APRIL 1, 1999
116,124,405
Adjustment of retained earnings
for the adoption of deferred tax
accounting method
Net income
Appropriations:
Cash dividends, ¥32.00 per share
Bonuses to directors
Transfer of retained earningsof the merged subsidiaryto additional paid-in capital (Note 3)
Net increase in foreign currencytranslation adjustments
Net increase in treasury stock(415 shares)
BALANCE, MARCH 31, 2000
116,124,405
Adjustment of retained earnings
for reorganization of consolidated
subsidiaries to branches (Note 3)
Adjustment of retained earnings
for newly consolidated subsidiaries
Net income
Appropriations:
Cash dividends, ¥39.00 per share
Bonuses to directors
Net increase in unrealized loss
on available-for-sale securities
Net decrease in foreign currencytranslation adjustments
Net decrease in treasury stock(1,838 shares)
BALANCE, MARCH 31, 2001
116,124,405
Adjustment of retained earnings
for merger of unconsolidated
subsidiaries (Note 3)
Adjustment of retained earnings
for accounting changes
at foreign subsidiaries
Net income
Appropriations:
Cash dividends, ¥55.00 per share
Bonuses to directors
Net increase in unrealized gain on
available-for-sale securities
Net decrease in foreign currencytranslation adjustments
Net Increase in treasury stock(2,029 shares)
BALANCE, MARCH 31, 2002
116,124,405

33

Hoya Corporation and Consolidated Subsidiaries
March 31, 2002, 2001 and 2000

Millions of Yen
CommonStock

Additional
Paid-in
CapitalRetained
Earnings¥ 6,264¥ 15,668¥144,910

Net UnrealizedGain(Loss) on Availablefor-sale Securities

Foreign Currency
Translation
Adjustments

TreasuryStock¥ (8,360)

¥ (9)

6,718
20,716(3,716)
(291)
231

(231)
(6,745)

6,264

15,899168,106(15,105)

(9)
(18)

(820)
(7)
21,860(4,529)(249)¥(516)
4,430

6,264

15,899184,361(516)(10,675)

18
(0)

667
66
23,741(6,387)
(193)
626
5,344

¥ 6,264¥ 15,899¥202,255¥ 110¥ (5,331)(17)¥ (17)

Thousands of U.S. Dollars (Note 1)
CommonStock

BALANCE, MARCH 31, 2001
Adjustment of retained earnings
for merger of unconsolidated
subsidiaries (Note 3)
Adjustment of retained earnings
for accounting changes
at foreign subsidiaries
Net income
Appropriations:
Cash dividends, $0.41 per share
Bonuses to directors
Net increase in unrealized gain on
available-for-sale securities
Net decrease in foreign currencytranslation adjustments
Net Increase in treasury stock (2,029 shares)
BALANCE, MARCH 31, 2002

Additional
Paid-in
CapitalRetained
Earnings$ 47,098 $ 119,541 $ 1,386,173

Net UnrealizedGain(Loss) on Availablefor-sale Securities

Foreign Currency
Translation
Adjustments$ (3,880)$ (80,263)

Treasury
Stock

$

(0)

5,015
496
178,504(48,023)(1,451)
4,707
40,181$ 47,098 $ 119,541 $ 1,520,714$827$ (40,082)(128)$ (128)

See notes to consolidated financial statements.

34

C onsolidated S tatements of Cash Flows

Hoya Corporation and Consolidated Subsidiaries
March 31, 2002, 2001 and 2000

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2002

2001

2000

2002

¥ 37,588¥ 31,508¥ 33,492$ 282,617(15,395)
19,636469(1,530)(191)(1,193)
243
479
(137)
(336)
3,118
1,529
(305)
(195)
(533)
632

(13,421)
17,791
14,347
605
87
(798)
(59)
1,214
(126)
(268)
364
986
(753)
(251)
(1,865)363(13,771)
17,234(115,752)
147,6393,526(11,504)(1,436)(8,970)1,827
3,602(1,030)(2,526)23,444
11,496(2,293)(1,466)(4,008)
4,752

(915)
2,861
194
272
(4,180)1(1,089)(6,146)(1,749)
463
(510)
1,544
(32)
(556)

541
(5,035)
(121)
2,955
1,158
59
388

Total adjustments

3,435

11,2301,472

25,827

Net cash provided by operating activities

41,02342,73834,964308,444

1,631
(119)
(785)
480
(19,001)557(2,417)

1,972(2,706)(16,409)695(21,589)
1,246(2,675)

341
906
(863)
(1,900)1,465(17,693)697(2,849)12,263(895)(5,902)
3,609(142,864)
4,188(18,173)(19,654)(39,466)(19,896)(147,774)(1,722)
91
(126)

(83)
308
(222)

(1,571)
5(540)(12,947)
684
(947)

(17)
(6,412)

15(4,582)(9)(3,784)(128)(48,211)(8,186)(4,564)(5,899)(61,549)

13,183(1,292)

9,169

99,121

Operating Activities:
Income before income taxes and minority interests
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of goodwill
Provision for (reversal of) allowance for doubtful receivables
Provision for (reversal of) accrued bonuses to employees
Reversal of accrued retirement benefits
Provision for (reversal of) reserve for periodic repairs
Losses on write-down of investment securities
Gain on sales of marketable and investment securities
Gain on sales of property, plant and equipment
Loss on sales of investment securities
Loss on disposal of property, plant and equipment
Foreign exchange gain
Bonuses to directors
Equity in earnings of associated companies
Other
Changes in assets and liabilities:(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories(Increase) decrease in interest and dividend receivable(Increase) decrease in other current assets
Increase (decrease) in notes and accounts payable
Increase (decrease) in interest payable
Increase (decrease) in other current liabilities

Investing Activities:
Proceeds from sales of marketable securities
Proceeds from sales of investment securities
Purchases of investment securities
Payment for purchase of consolidated subsidiaries, net of cash acquired
Proceeds from sales of property, plant and equipment
Purchases of property, plant and equipment
Decrease in other assets
Increase in other assets
Net cash used in investing activities
Financing Activities:
Net decrease in short-term borrowings
Proceeds from long-term bank loans
Repayments of long-term bank loans
Net proceeds from sales of (payments for purchases of)treasury stock
Dividends paid
Net cash used in financing activities
Net Increase (Decrease) In Cash And Cash Equivalents
Cash And Cash Equivalents Increased By Merged Unconsolidated
Subsidiaries
Cash And Cash Equivalents Of Newly Consolidated Subsidiaries,
Beginning Of Year
Foreign Currency Translation Adjustments On Cash And Cash Equivalents
Cash And Cash Equivalents, Beginning Of Year
Cash And Cash Equivalents, End Of Year

35

286
(62)
(79)
(261)
398
(430)
(251)
571
(481)
(293)
(1,334)290(6,880)21,511
1,459
2,045(31,429)
8(8,188)

2,180

1,150
51,69836
1,299
51,655(1,021)
43,507

8,646
388,707¥ 66,321¥ 51,698¥ 51,655$ 498,654

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2002

Noncash Investing And Financing Activities:
Increase in assets and liabilities due to merger of
unconsolidated subsidiaries:
Assets (primarily inventory and property)
Liabilities (primarily trade payables)
Increase in assets and liabilities due to consolidationof a subsidiary previously unconsolidated:
Assets (primarily inventory and property)
Liabilities (primarily trade payables)
Additional Information:
Assets acquired and liabilities assumed in acquisition:
Assets acquired
Goodwill
Consolidated goodwill
Liabilities assumed
Minority interests
Investments in associated companies
Cash paid

2001

2000

¥ 1,168(196)$ 8,782(1,474)

¥

453
(423)

¥ 1,211
469
335
(805)
(147)
(278)

¥ 3,847
14,185¥ 5,298
1,210(1,623)(4,608)¥¥ 16,409¥ 1,900785

2002$ 9,105
3,526
2,519(6,053)(1,105)(2,090)$ 5,902

See notes to consolidated financial statements.

36

toonsolidated
F inancial S tatements
N otes C

N o» 1

basis of presenting consolidated
financial statements

Hoya Corporation and Consolidated Subsidiaries

Under the control or influence concept, those companies inwhich the Parent, directly or indirectly, is able to exercise

The accompanying consolidated financial statements havecontrol over operations are fully consolidated, and thosebeen prepared in accordance with the provisions set forth incompanies over which the Group has the ability to exercise

the Japanese Securities and Exchange Law and its related

significant influence are accounted for by the equity method.

accounting regulations, and in conformity with accounting

Investments in two (four in 2001 and 2000) associatedprinciples and practices generally accepted in Japan, which

companies in 2002 are accounted for by the equity method.

are different in certain respects as to application and disclo-

Investments in the remaining unconsolidated subsidiaries andsure requirements of International Accounting Standards.

associated companies are stated at cost. If the equity method

The consolidated financial statements are not intended toof accounting had been applied to the investments in thesepresent the financial position, results of operations and cash

companies, the effect on the accompanying consolidated

flows in accordance with accounting principles and practices

financial statements would not be material.

generally accepted in countries and jurisdictions other thanJapan.

The differences between the cost and underlying net equity
of investment in consolidated subsidiaries and associatedIn preparing these consolidated financial statements,

companies accounted for by the equity method are charged tocertain reclassifications and rearrangements have been madeincome when incurred, except that goodwill of some subsid-

to the consolidated financial statements issued domestically iniaries acquired in Europe is being amortized on a straight-lineorder to present them in a form which is more familiar tobasis over a period of 5 years and the amortized amount isreaders outside Japan.

included in other expenses.

The consolidated financial statements are stated in Japa-

All significant intercompany balances and transactions

nese yen, the currency of the country in which Hoya Corpo-

have been eliminated in consolidation. All material unreal-ration (the “Company”) is incorporated and operates. The

ized profits included in assets resulting from transactionstranslations of Japanese yen amounts into U.S. dollar

within the Group are eliminated.

amounts are included solely for the convenience of readers
outside Japan and have been made at the rate of ¥133 to
U.S.$1, the approximate rate of exchange at March 31, 2002.
Such translation should not be construed as representations
that the Japanese yen amounts could be converted into U.S.
dollars at that or any other rate.
Certain reclassifications have been made in the 2001 and2000 consolidated financial statements to conform to theclassifications used in 2002. These reclassifications had noeffect on previously reported net income. As described in
Note 2, total shareholders’ equity had been reduced byforeign currency translation adjustments.
oN »2summary of significant accounting
policies

a. Consolidationb. Cash Equivalents

Cash equivalents are short-term investments that are readily
convertible into cash and that are exposed to insignificant
risk of changes in value.
Cash equivalents include time deposits, certificate ofdeposits, commercial paper and mutual funds investing inbonds that represent short-term investments, all of whichmature or become due within three months of the date ofacquisition.
c. Inventories

Inventories are primarily stated at cost, cost being determinedprincipally by the average method.
d. Investment Securities

Prior to April 1, 2000, current and non-current marketablesecurities listed on stock exchanges were stated at the lower

The consolidated financial statements as of March 31, 2002of cost, determined by the moving-average method, or

include the accounts of the Company and its 51 significant

market. Effective April 1, 2000, the Group adopted a new(46 in 2001 and 2000) subsidiaries (together, the “Group”).

accounting standard for financial instruments. Under this37

standard, all securities are classified as available-for-salefor employees' retirement benefits and accounted for the

securities and are reported at fair value, with unrealized gains

liability for retirement benefits based on projected benefit

and losses, net of applicable taxes, reported in a separate

obligations and plan assets at the balance sheet date. The

component of shareholders’ equity. The cost of securities soldtransitional obligation of ¥3,166 million, determined as ofis determined based on the moving-average method. The

April 1, 2000, is being amortized over 15 years and presented

effect of this change was to increase income before income

as other expense in the consolidated statements of income.

taxes by ¥987 million for the year ended March 31, 2001.

As a result, net periodic benefit costs, as compared with theNon-marketable available-for-sale securities are stated atprior method, decreased by ¥1,742 million and income before

cost determined by the moving-average method.
For other than temporary declines in fair value, investment
securities are reduced to net realizable value by a charge toincome taxes and minority interests increased by ¥1,603
million for the year ended March 31, 2001.
The annual provision for accrued retirement benefits forincome.

directors and corporate auditors of the Company and its

e. Property, Plant and Equipment

consolidated domestic subsidiaries is also calculated to state

Property, plant and equipment are stated at cost. Deprecia-

the liability at the amount that would be required if alltion of property, plant and equipment of the Company and its

directors and corporate auditors retired at each balance sheet

consolidated domestic subsidiaries is computed substantiallydate. The provisions for the retirement benefits are notby the declining-balance method at rates based on thefunded.

estimated useful lives of the assets, while the straight-line

h. Research and Development Expenses

method is applied to buildings of the Company and its

Research and development expenses are charged to income

domestic subsidiaries, and to all property, plant and equip-

when incurred.

ment of consolidated foreign subsidiaries. The net booki. Leases

value of tangible fixed assets depreciated by the straight-line

All leases are accounted for as operating leases. Under

method was approximately 42.8% of total tangible fixed

Japanese accounting standards for leases, finance leases that

assets in 2002 and 37.1% in 2001. The ranges of useful lives

deem to transfer ownership of the leased property to theare from 10 to 50 years for buildings and structures and fromlessee are to be capitalized, while other finance leases are

5 to 10 years for machinery and vehicles.

permitted to be accounted for as operating lease transactions

f. Intangible Assets

if certain “as if capitalized” information is disclosed in the

Intangible assets are carried at cost less accumulated amorti-

notes to the lessee’s consolidated financial statements.

zation, which are calculated by the straight-line method.

j. Income Taxes

Amortization of software is calculated by the straight-line

The provision for income taxes is computed based on themethod over 5 years.

pretax income included in the consolidated statements ofg. Retirement Benefits

income. The asset and liability approach is used to recognize

The Company and certain consolidated subsidiaries havedeferred tax assets and liabilities for the expected future tax

contributory funded pension plans and unfunded retirement

consequences of temporary differences between the carrying

benefit plans which cover substantially all of their employees.

amounts and the tax bases of assets and liabilities. Deferred

Other subsidiaries have unfunded retirement benefit plans.

taxes are measured by applying currently enacted tax laws toPrior to April 1, 2000, amounts contributed to the plan were

the temporary differences. Effective April 1, 1999, the Groupcharged to income when paid. Certain consolidated subsid-

adopted the new accounting standard for interperiod alloca-

iaries have unfunded retirement benefit plans and havetion of income taxes based on the asset and liability method.

recorded a liability for retirement allowances at 100% of the

The cumulative effect of the application of interperiod tax

amount which would be required if all employees voluntarily

allocation in prior years in the amount of ¥6,718 million is

terminated their employment at the balance sheet date priorincluded as an adjustment to retained earnings as of April 1,

to April 1, 2000.

1999. Such cumulative effect is calculated by applying theEffective April 1, 2000, the Company and domestic
consolidated subsidiaries adopted a new accounting standard

income tax rate stipulated by enacted tax laws as of April 1,
1999.
38

k. Appropriations of Retained Earnings

tions. These standards require that: a) all derivatives be

Appropriations of retained earnings at each year end arerecognized as either assets or liabilities and measured at fairreflected in the consolidated financial statements for thevalue, and gains or losses on derivative transactions arefollowing year upon shareholders’ approval.

recognized in the income statement and b) for derivatives

l. Foreign Currency Transactions

used for hedging purposes, if derivatives qualify for hedge

Prior to April 1, 2000, short-term receivables and payables

accounting because of high correlation and effectiveness

denominated in foreign currencies were translated into

between the hedging instruments and the hedged items, gains

Japanese yen at the current exchange rates at each balanceor losses on derivatives are deferred until maturity of the

sheet date, while long-term receivables and payables denomi-

hedged transactions.

nated in foreign currencies were translated at historical rates.

The foreign exchange forward contracts employed to hedge

Effective April 1, 2000, the Group adopted a revised

foreign exchange exposures for export sales are measured at

accounting standard for foreign currency transactions. In

the fair value and the unrealized gains / losses are recognizedaccordance with the revised standard, all short-term andin income. Forward contracts applied for forecasted (orlong-term monetary receivables and payables denominated incommitted) transactions are also measured at the fair value

foreign currencies are translated into Japanese yen at thebut the unrealized gains / losses are deferred until the underly-

exchange rates at the balance sheet date. The foreign ex-

ing transactions are completed.

change gains and losses from translation are recognized in theLong-term debt denominated in foreign currencies forincome statement to the extent that they are not hedged bywhich foreign exchange forward contracts are used to hedge

forward exchange contracts.

the foreign currency fluctuations are translated at the con-

As a result of adopting the new accounting standards forforeign carrency transactions, there is no effect on income
before income taxes and minority interests for the year ended

tracted rate if the forward contracts qualify for hedge
accounting.
The interest rate swaps which qualify for hedge accounting

March 31, 2001.

and meet specific matching criteria are not remeasured at

m. Foreign Currency Financial Statements

market value but the differential paid or received under the

The balance sheet accounts of the consolidated overseas

swap agreements are recognized and included in interest

subsidiaries and associated companies are translated into

expenses or income.

Japanese yen at the current exchange rates as of the balance

As a result of adopting the new accounting standards for

sheet dates except for shareholders’ equity, which is trans-

derivative financial instruments, there is no effect on income

lated at historical exchange rates. Differences arising frombefore income taxes and minority interests for the year ended

such translation are shown as “Foreign currency translation

March 31, 2001.

adjustments” in a separate component of shareholders’o. Per Share Information

equity.

The computation of net income per common share is based

Revenue and expense accounts of the consolidated overseas

on the weighted average number of shares outstanding duringsubsidiaries and associated companies are translated into

each year. The average number of common shares used in theJapanese yen at the monthly average exchange rates.

computation was 116,123,361 shares, 116,123,456 sharesn. Derivatives and Hedging Activities

and 116,122,537 shares for the years ended March 31, 2002,

The Group uses derivative financial instruments to manage its

2001 and 2000, respectively.

exposures to fluctuations in foreign exchange. Foreignexchange forward contracts are utilized by the Group to
reduce foreign currency exchange risks. The Group does not

Diluted net income per share is not disclosed because it isanti-dilutive.
Cash dividends per common share presented in the accom-

enter into derivatives for trading or speculative purposes.

panying consolidated statements of income are dividends

Effective April 1, 2000, the Group adopted a new

applicable to the respective years including dividends to beaccounting standard for derivative financial instruments anda revised accounting standard for foreign currency transac-

39

paid after the end of the year.

N o» 3

reorganization(i) Merger of the company with subsidiaries

recorded and subsequently ¥14,347 million, which was
charged to income. Also an adjustment of retained earnings for

On July 1, 1999, the Company merged with Hoya Lens

the reorganization of consolidated subsidiaries to branches was

Corporation, which had been a wholly owned subsidiary ofrecorded in the amount of ¥820 million as an adjustment to

the Company. The Japanese Commercial Code (the “Code”)

income from April 1, 2000 to February 28, 2001 of HOL andrequires that the legal reserve of the merged company besubsidiaries.

transferred to additional paid-in capital in the event of a(iii) Reorganization of Subsidiaries

merger.

On September 30, 2001, the Company purchased the

On July 1, 2001, the Company merged with Hoya Fiberminority interest of Hoya Optikslip AB (“HOSL”) in Sweden

Photonics Corporation, which had been a wholly ownedfor ¥384 million ($2,887 thousand) to become a wholly

unconsolidated subsidiary of the Company.

owned consolidated subsidiary. Previously, HOSL had been(ii) Reorganization of subsidiaries to the Company’s branches

accounted for by the equity method.

On April 1, 2000, the Company purchased ORI Group which

On October 1, 2001, Welfare Corporation, which had aconsisted of 11 companies in the United States for ¥ 15,896

wholly owned unconsolidated subsidiary of the Company,

million and on October 31,2000, Midwest Optical Laborato-

was merged into Hoya Healthcare Corporation (“HHC”).

ries, Inc. (“MOL”) for ¥ 513 million. ORI Group, MOL anda newly established American company consisted of Hoya

On January 1, 2002, Welfare Corporation was then split
up from HHC.

Optical Laboratories, Inc. (“HOL”) and 12 consolidated

On February 1, 2002, the Company purchased Eagle

subsidiaries, which had been wholly owned American

Optics, Inc. in the United States for ¥474 million ($3,563

subsidiaries of HOL.

thousand).

On March 1, 2001, the Company reorganized HOL and theOn March 31, 2002, the Company increased its ownership

12 consolidated subsidiaries to the Company’s branches. Dueof Thai Hoya Lens Ltd. to become a consolidated subsidiary,

to the reorganization, goodwill of ¥15,167 million was

which had been accounted for by the equity method.

N o» 4

cash and cash equivalents

Cash and cash equivalents as of March 31, 2002 and 2001 consisted of the following:
Millions of Yen

Thousands of
U.S. Dollars

2002

2001

2002

Cash on hand and in banks
Commercial paper¥66,321¥44,698
7,000$498,654

Total¥66,321¥51,698$498,654

N o» 5

investment securities

Investment securities as of March 31, 2002 and 2001 consisted of the following:
Millions of Yen

2002

589

Thousands of
U.S. Dollars

2001

2002

$ 4,429$ 7,932

Marketable equity securities
Government and corporate bonds
Non-marketable equity securities¥

466¥2,450
1,650
815

Total

¥ 1,055¥4,915

3,503

The carrying amounts and aggregate fair values of marketable equity securities at March 31, 2002 and 2001 were as follows:40

March 31, 2002
Millions of Yen
Cost

Available-for-sale:
Equity securities¥ 400

Unrealized
Gains

Unrealized
LossesFair Value

¥ 203

¥ 14

¥ 589

March 31, 2001
Millions of Yen

Available-for-sale:
Equity securities

Cost

Unrealized
Gains

Unrealized
LossesFair Value¥3,334

¥ 103

¥987

¥2,450March 31, 2002
Thousands of U.S. Dollars

Available-for-sale:
Equity securities

Cost

Unrealized
Gains

Unrealized
LossesFair Value$ 3,008$1,526$105$ 4,429

Available-for-sale securities whose fair value is not readily determinable as of March 31, 2002 and 2001 were as follows:
Carrying amountMillions of Yen

2002

Thousands of
U.S. Dollars

2001

2002

815
1,650
7,000

$3,503¥ 9,465$3,503Equity securities
Debt securities
Commercial paper

¥ 466

¥

Total

¥ 466

Commercial paper is included in cash and cash equivalents.
Proceeds from sales of available-for-sale securities for the year ended March 31, 2002 and 2001 were ¥1,631 million($12,263 thousand) and ¥1,972 million, respectively. Gross realized gains and losses on these sales, computed on the moving
average cost basis, were ¥137 million ($1,030 thousand) and ¥3,118 million ($23,444 thousand), respectively, for the year
ended March 31,2002 and ¥126 million and ¥364 million, respectively, for the year ended March 31,2001.

N o» 6

notes receivable

Notes receivable are reduced when cash is recorded. Due to the fact that the years end fell on a holiday, notes receivable,
whose maturity were March 31, 2002 of ¥1,512 million ($11,368 thousand) and March 31, 2001 of ¥597 million, were
included notes receivable.

N o» 7inventories

Inventories at March 31, 2002 and 2001 consisted of the following:
Millions of Yen

Thousands of
U.S. Dollars

2002

2001

2002

Finished products and merchandise
Semi-finished products and work in process
Raw materials
Supplies¥ 14,652
9,174
6,720
5,050

¥ 15,094
9,066
7,075
5,271

$ 110,165
68,97850,52637,970Total¥ 35,596¥ 36,506$ 267,63941

N o» 8short-term bank loans and long-term bank loans

Short-term bank loans at March 31, 2002 and 2001 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

Short-term loans and overdrafts, principally from banks, with interest rates
ranging from 0.33% to 11.16% (2002) andfrom 0.9125% to 7.85% (2001)

2002

2001

2002

¥3,306¥4,570$24,857

Long-term bank loans as of March 31, 2002 and 2001 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

3.724% unsecured Euro-denominated loans,due through 2004 (in 2002) and 5.30912% unsecured
France franc-denominated loans, due through 2003 (in 2001)
5.9%-6.2% unsecured Swedish kroua-denominated loans,due through 2007
Other loans

2002

2001

2002

¥ 380

¥ 333

$ 2,857

173

Total
Less current portionLong-term bank loans, less current portion

1,301

89

152

669

642
(73)

485
(61)

4,827
(549)

¥ 569

¥ 424

$ 4,278

Annual maturities of long-term bank loans as of March 31, 2002 were as follows:
Millions of Yen

Thousands of
U.S. Dollars

2003
2004
2005
2006
2007

¥ 73
466
45
39
19

$ 549
3,504
338
293
143

Total

¥642

$4,827

Year Ending March 31

NO»9 R E T I R E M E N T B E N E F I T S A N D P E N S I O N P L A N S
The Company and its certain consolidated domestic subsidiaries have severance payment plans for employees, directors andcorporate auditors.
Under most circumstances, employees terminating their employment are entitled to retirement benefits determined based on
the rate of pay at the time of termination, years of service and certain other factors. Such retirement benefits are made in theform of a lump-sum severance payment from the Company or from certain consolidated subsidiaries and annuity paymentsfrom a trustee. Employees are entitled to larger payments if the termination is involuntary, by retirement at the mandatory
retirement age, by death, or by voluntary retirement at certain specific ages prior to the mandatory retirement age.
Effective April 1, 2000, the Group adopted a new accounting standard for employees’ retirement benefits.
The liability for employees’ retirement benefits at March 31, 2002 and 2001 consisted of the following:
Millions of Yen

Projected benefit obligation
Fair value of plan assets
Unrecognized prior service cost
Unrecognized actuarial loss
Unrecognized transitional obligation
Prepaid pension cost
Net liability

Thousands of
U.S. Dollars

2002

2001

2002

¥ 66,510(37,126)
1,696(27,757)
2,745
1,244

¥ 54,238(40,108)
1,858(12,300)
2,956
1,717

$ 500,075(279,143)
12,752(208,699)
20,6399,353¥¥ 8,361$

7,312

54,97742

The components of net periodic benefit costs for the year ended March 31, 2002 and 2001 are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Recognized actuarial loss
Amortization of transitional obligation

2002

2001

2002

¥ 1,667
1,879(2,194)
(163)
1,021
(210)

¥ 1,798
1,810(2,568)(83)(210)$ 12,534
14,128(16,496)(1,226)
7,677(1,579)

2,000
1,996

747
176

15,03815,007923$ 30,045

Total
Additional retirement benefits paid to employees
Net periodic benefit costs¥ 3,996¥

Assumptions used for the years ended March 31, 2002 and 2001 are set forth as follows:
Discount rate
Expected rate of return on plan assets
Amortization period of prior service cost
Recognition period of actuarial gain / loss
Amortization period of transitional obligation

2002

2001

2.5%
5.5%
12 years
12 years
15 years

3.5%
5.5%
12 years
12 years
15 years

The amounts contributed to the fund which were charged to income for the year ended March 31, 2000 were ¥1,882
million.
Accrued retirement benefits for directors and corporate auditors of the Company and its consolidated domestic subsidiaries
are paid subject to approval of the shareholders in accordance with the Code. Accrued retirement benefits recorded in theaccompanying consolidated balance sheets at March 31, 2002 and 2001, included amounts for directors and corporate auditors in the amount of ¥254 million ($1,910 thousand) and ¥343 million, respectively.

N o » 10 s h a r e h o l d e r s ' e q u i t yJapanese companies are subject to the Code to which certain amendments became effective from October 1, 2001.
Prior to October 1, 2001, the Code required at least 50% of the issue price of new shares, with a minimum of the par value
thereof, to be designated as stated capital as determined by resolution of the Board of Directors. Proceeds in excess of amounts
designated as stated capital were credited to additional paid-in capital. Effective October 1, 2001, the Code was revised andcommon stock par values were eliminated resulting in all shares being recorded with no par value.
Prior to October 1, 2001, the Code also provided that an amount at least equal to 10% of the aggregate amount of cash
dividends and certain other cash payments which are made as an appropriation of retained earnings applicable to each fiscal
period shall be appropriated and set aside as a legal reserve until such reserve equals 25% of stated capital. Effective October
1, 2001, the revised Code allows for such appropriations to be set aside as a legal reserve until the total additional paid-in
capital and legal reserve equals 25% of stated capital. The amount of total additional paid-in capital and legal reserve which
exceeds 25% of stated capital can be transferred to retained earnings by resolution of the shareholders, which may be available
for dividends. The Company’s legal reserve amount, which is included in retained earnings, totals ¥1,566 million ($11,774
thousand) as of March 31, 2002 and 2001.
Under the Code, companies may issue new common shares to existing shareholders without consideration as a stock split
pursuant to a resolution of the Board of Directors. Prior to October 1, 2001, the amount calculated by dividing the total
amount of shareholders’ equity by the number of outstanding shares after the stock split could not be less than ¥50. The
revised Code eliminated this restriction.
Prior to October 1, 2001, the Code imposed certain restrictions on the repurchase and use of treasury stock. Effective
October 1, 2001, the Code eliminated these restrictions allowing companies to repurchase treasury stock by a resolution of the43

shareholders at the general shareholders' meeting and dispose of such treasury stock by resolution of the Board of Directors
after March 31, 2002. The repurchased amount of treasury stock cannot exceed the amount available for future dividend plus
amount of stated capital, additional paid-in capital or legal reserve to be reduced in the case where such reduction was resolved
at the general shareholders’ meeting.
The Code permits companies to transfer a portion of additional paid-in capital and legal reserve to stated capital by resolution of the Board of Directors. The Code also permits companies to transfer a portion of unappropriated retained earnings,
available for dividends, to stated capital by resolution of the shareholders.
Dividends are approved by the shareholders at a meeting held subsequent to the fiscal year to which the dividends areapplicable. Semiannual interim dividends may also be paid upon resolution of the Board of Directors, subject to certain
limitations imposed by the Code.
Under the Code, the amount available for dividends is based on retained earnings as recorded on the Company’s books. At
March 31, 2002, retained earnings recorded on the Company’s books were ¥148,147 million ($1,113,887 thousand), which
are available for future dividends subject to approval of the shareholders and legal reserve requirements.

N o » 11 i n c o m e t a x e s
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate,
resulted in a normal effective statutory tax rate of approximately 41.7% for the years ended March 31, 2002, 2001 and 2000.
The tax effects of significant temporary differences which resulted in deferred tax assets and liabilities at March 31, 2002
and 2001 are as follows:
Thousands of
U.S. Dollars

Millions of Yen

2002

2001

2002

¥ 1,266
1,090
921
351
622

¥ 1,265
870
1,068
737
1,174

$ 9,519
8,195
6,925
2,639
4,677

4,250

5,114

31,955

518
117

487
127

3,895
879

635

614

4,774

¥ 3,615¥ 4,500$27,181¥ 2,9102,548¥ 4,328
2,520$21,880
19,158

677
247
2,254

641
626
1,730

5,090
1,857
16,947

8,636

9,845

64,932

1,001
224

1,019
171

7,526
1,684

Total

1,225

1,190

9,210

Net deferred tax assets¥ 7,411¥ 8,655$55,722

Current:
Deferred tax assets:
Amortization of goodwill
Accrued bonuses to employees
Inventories-intercompany unrealized profits
Accrued enterprise taxes
Other
Total
Deferred tax liabilities:
Prepaid pension cost
Other
Total
Net deferred tax assets
Non-current:
Deferred tax assets:
Amortization of goodwill
Accrued retirement benefits
Devaluation of property, plant and equipment
and software
Allowance for doubtful receivables
Other
Total
Deferred tax liabilities:
Reserves for special depreciation and other
Other

44

A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying consolidated statements of income for the years ended March 31, 2002, 2001 and 2000 is as follows:
2002

2001

2000

Normal effective statutory tax rate
Lower income tax rates applicable to income in certain foreign countries
Expenses not permanently deductible for income tax purposes
Per capita portion
Non-taxable dividend income
Intercompany cash dividend
Other—net

41.7%
(5.2)
0.5
0.3
(3.9)
3.8
(0.6)

41.7%
(12.1)
0.8
0.4
(3.8)
3.8
(0.5)

41.7%
(3.0)
0.6
0.3
(4.6)
4.4
(1.6)

Actual effective tax rate

036.6%

30.3%

37.8%

N o » 12 r e s e a r c h a n d d e v e l o p m e n t e x p e n s e s
Research and development expenses charged to income for the years ended March 31, 2002, 2001 and 2000 were ¥5,511
million ($41,436 thousand), ¥5,161 million and ¥5,146 million, respectively.

N o » 13 l e a s e sIncome from equipment leases for the years ended March 31, 2002, 2001 and 2000 was ¥4 million ($30 thousand), ¥38
million and ¥155 million, respectively.
The Group leases certain machinery, computer equipment, office space and other assets. Total rental expenses for the years
ended March 31, 2002, 2001 and 2000 were ¥8,739 million ($65,707 thousand), ¥8,352 million and ¥5,559 million, including¥1,413 million ($10,624 thousand), ¥1,745 million and ¥2,047 million of lease payments under finance leases, respectively.
Pro forma information of leased property under finance leases that do not transfer ownership of the leased property to thelessee on an “as if capitalized” basis for the years ended March 31, 2002, 2001 and 2000 were as follows:
Millions of Yen

Thousands of U.S. Dollars

2002

2001

As Lessee

2002

As Lessee

As Lessor

As Lessee

For the Years Ended March 31, 2002 and 2000

MachineryandVehiclesFurnitureandEquipment

MachineryandVehiclesFurnitureandEquipment

FurnitureandEquipment

MachineryandVehiclesFurnitureandEquipment

Acquisition cost
Accumulated depreciation¥ 2,966
1,470¥ 3,975
2,282¥ 4,483
2,450¥ 3,964
2,373

¥ 37
33

$ 22,301
11,053$ 29,887
17,158Net leased property¥ 1,496¥ 1,693¥ 2,033¥ 1,591¥$ 11,248$ 12,729

4

Millions of Yen

2002

Thousands of U.S. Dollars

2001

Obligations

2002
Obligations

Obligations

under

Unearned

under

under

Finance Lease

Lease Income

Finance Lease

Finance Lease

Due within one year
Due after one year

¥ 1,235
1,954¥ 4¥ 1,582
2,042$ 9,285
14,692

Total¥ 3,189¥ 4¥ 3,624$ 23,977

For the Years Ended March 31, 2002 and 2000

The interest income portion as lessor is included in the above unearned lease income. The imputed interest expense portion aslessee is included in the above obligations under finance leases.
Depreciation expense for lessee, which is not reflected in the accompanying consolidated statements of income, computed by
the straight-line method was ¥1,413 million ($10,624 thousand), ¥1,745 million and ¥2,047 million for the years ended March45

31, 2002, 2001 and 2000, respectively.
Depreciation expense for lessor, which is reflected in the accompanying consolidated statements of income, computed by thestraight-line method was ¥3 million ($23 thousand), ¥36 million and ¥135 million for the years ended March 31, 2002, 2001
and 2000, respectively.
The minimum rental commitments under noncancellable operating leases at March 31, 2002 were as follows:
Millions of Yen

Due within one year
Due after one year

¥

99
1,237

Total

¥ 1,336

Thousands of
U.S. Dollars

$

744
9,301

$ 10,045

N o » 14 r e l a t e d p a r t y t r a n s a c i o n s
Transactions of the Group with unconsolidated subsidiaries and associated companies for the years ended March 31, 2002,
2001 and 2000 were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Sales
Purchases
Selling, general and administrative expenses
Other income—net

2002

2001

2000

2002

¥1,029536
36
217¥1,472436
190
271¥1,824473
181
357$ 7,737
4,030
271
1,632

The balances due to or from these subsidiaries and associates at March 31, 2002 and 2001 were as follows:
Millions of Yen

Notes and accounts receivable
Other current assets
Notes and accounts payable
Other current liabilities

Thousands of
U.S. Dollars

2002

2001

2002

¥ 238
6
29

¥ 361
15
92
357

$1,78945
218

Transactions of the Group with a director, his immediate families and two related companies as of and for the years ended
March 31, 2002, 2001 and 2000 were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Sales
Selling, general and administrative expenses

2002

2001

2000

2002

¥ 7

¥12
7

¥ 53
12

$53

N o » 15 c o n t i n g e n t l i a b i l i t i e s
At March 31, 2002, the Group had the following contingent liabilities:
Millions of Yen

Thousands of
U.S. Dollars

2002

2002

Guarantees of borrowings and lease obligations for customers
Guarantees of borrowings for the Group’s employees

¥ 447
123

$ 3,361
925

Total

¥ 570

$ 4,28646

N o » 16 d e r i v a t i v e s
The Group enters into foreign currency forward contracts to hedge foreign exchange risk associated with certain assets andliabilities denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign currency exposures incorporated within its business. Accordingly,
market risk in these derivatives is basically offset by opposite movements in the value of hedged assets or liabilities.
Because the counterparties to these derivatives are limited to major international financial institutions, the Group does not
anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate theauthorization and credit limit amount.
According to the new accounting standards for derivative financial instruments, foreign currency forward contracts which
qualify for hedge accounting for the years ended March 31, 2002 and 2001 and such amounts which are assigned to theassociated assets or liabilities and are recorded on the balance sheet at March 31, 2002 and 2001, are not subjected to disclosemarket value information.

N o » 17 s u b s e q u e n t e v e n t(1) Appropriations of Retained Earnings
The following appropriations of retained earnings for the year ended March 31, 2002 were approved at the Company’s
shareholders meeting held on June 21, 2002:
Millions of Yen

Thousands of
U.S. Dollars

Year-end cash dividends, ¥25.00 ($0.19) per share
Bonuses to directors¥ 2,90396$ 21,827
722

Total

¥ 2,999$ 22,549

In addition to the cash dividends described above, the Company paid interim cash dividends of ¥2,903 million [$21,827
thousand, ¥25.00 ($0.19) per share] on October 22, 2001, to shareholders of record as of September 30, 2001, based on a
resolution of the Board of Directors.
(2) Stock Option Plan and Purchase of Treasury StockAt the Company’s shareholders meeting held on June 21, 2002, the Company’s shareholders approved the following stock
option plan for the Group’s directors and key employees and the purchase of treasury stock for the stock option plan andretirement and the related reduction of retained earnings:
a. Stock option plan
The plan provides for granting options to the Group’s directors and key employees to purchase up to 3,500 thousand shares of
the Company’s common stock in the period from October 1, 2003 to September 30, 2007. The options are granted at an
exercise price at the fair value at the previous date of the option grant. The Company plans to issue acquired treasury stock
upon exercise of the stock options.
b. Purchase of treasury stock
The Company is authorized to repurchase up to 1,160 million shares of the Company’s common stock (aggregate amount of¥105 billion).

47

N o » 18 s e g m e n t i n f o r m a t i o nInformation about industry segments, geographic segments and sales to foreign customers of the Company and consolidated
subsidiaries for the years ended March 31, 2002, 2001 and 2000 is as follows:(1) Industry Segments
a. Sales and Operating Income
Millions of Yen
2002
Information Technology

Sales to customers
Intersegment sales

Electro-Optics

Photonics

Vision Care

Health Care

CrystalService¥ 101,496
481¥ 7,157¥ 93,184
28¥ 23,106811¥ 8,78835¥ 1,534
3,110

101,977
74,188

7,157
7,624

93,212
78,79923,917
20,488

8,823
8,824

4,644
4,392

¥ 27,789¥ (467)¥ 14,413

Total sales
Operating expenses
Operating income (loss)

LifestyleRefinement

Eye Care

¥

3,429

¥

(1)

¥

252

Total

Eliminations
and Corporate

Consolidated¥ 235,265¥ 235,265
4,465 ¥ (4,465)
239,730
194,315¥(4,465)(2,948)235,265
191,367

45,415 ¥ (1,517) ¥ 43,898

b. Assets, Depreciation and Capital Expenditures
Millions of Yen
2002
Information Technology

AssetsDepreciation
Capital expenditures

LifestyleRefinement

Eye Care

Electro-Optics

Photonics

Vision Care

Health Care

CrystalService¥ 111,806
12,687
13,280¥ 4,515227
53¥ 92,309
5,516
5,259

¥ 15,816554
687¥ 8,684498
254¥ 3,44537
1

Eliminations
and Corporate

Consolidated¥ 236,575 ¥41,493
19,519117
19,53451¥ 278,068
19,636
19,585

Eliminations
and Corporate

Consolidated

Total

a. Sales and Operating Income
Thousands of U.S. Dollars
2002
Information Technology

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income (loss)

LifestyleRefinement

Eye Care

Electro-Optics

Photonics

Vision Care

Health Care

Crystal$ 763,128
3,617$ 53,812$ 700,632
210$ 173,729
6,098$ 66,075
263

766,745557,805

53,81257,323700,842
592,474

179,827
154,045

66,33866,346$ (3,511) $ 108,368$ 25,782$ 208,940$

Service

(8)

Total

$ 11,534 $1,768,910$1,768,910
23,38333,571 $(33,571)
34,91733,022

1,802,481
1,461,015(33,571) 1,768,910(22,165) 1,438,850$ 1,895 $ 341,466 $(11,406) $ 330,060

b. Assets, Depreciation and Capital Expenditures
Thousands of U.S. Dollars
2002
Information Technology

AssetsDepreciation
Capital expenditures

Electro-Optics

Photonics$840,647
95,391
99,850$ 33,947
1,707
398

LifestyleRefinement

Eye Care
Vision Care

Health Care

$ 694,053 $ 118,917
41,4744,165
39,541
5,165

Crystal$ 65,293
3,744
1,910

Service

Total

Eliminations
and Corporate

Consolidated$ 25,902 $1,778,759 $311,978 $2,090,737
278
146,759880
147,6398
146,872384
147,256

48

a. Sales and Operating Income
Millions of Yen
2001
Information Technology

Sales to customers
Intersegment sales

Electro-Optics

Photonics

Vision Care

Health Care

CrystalService¥ 112,341
585¥ 6,534¥ 86,198
27¥ 20,130
1,498¥ 9,94234¥ 1,657
3,127

112,926
78,111

6,534
7,422

86,22575,624

21,62819,223

9,976
9,691

4,784
4,633

¥ 34,815¥ (888)¥ 10,601

Total sales
Operating expenses
Operating income (loss)

LifestyleRefinement

Eye Care

¥

2,405

¥

285

¥

151

Total

Eliminations
and Corporate

Consolidated¥ 236,802¥ 236,802
5,271 ¥ (5,271)
242,073
194,704¥(5,271)(3,030)236,802
191,674

47,369 ¥ (2,241) ¥ 45,128

b. Assets, Depreciation and Capital Expenditures
Millions of Yen
2001
Information Technology

AssetsDepreciation
Capital expenditures

LifestyleRefinement

Eye Care

Electro-Optics

Photonics

Vision Care

Health Care

CrystalService¥ 112,257
10,29915,230¥ 4,942291
218¥ 83,343
5,987
22,287¥ 13,366
479
1,138¥ 9,828552
610¥ 4,907
59
34

Eliminations
and Corporate

Consolidated¥ 228,643 ¥38,968
17,667
124
39,517156¥ 267,611
17,791
39,673Eliminations
and Corporate

Consolidated

Total

a. Sales and Operating Income
Millions of Yen
2000
Information Technology

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income (loss)

LifestyleRefinement

Eye Care

Electro-Optics

Photonics

Vision Care

Health Care

CrystalService¥ 90,174451¥ 7,2483¥ 71,75424¥ 19,541
1,411¥10,51621¥ 1,877
4,636

90,62568,034

7,251
7,310

71,77860,12020,952
18,49910,537
9,762

6,513
6,472

(59)

¥ 11,658

2,453¥¥ 22,591

¥

¥

775

¥

41

Total

¥ 201,110¥ 201,110
6,546 ¥ (6,546)
207,656
170,197¥(6,546)(3,775)201,110
166,422

37,459 ¥ (2,771) ¥ 34,688

b. Assets, Depreciation and Capital Expenditures
Millions of Yen
2000
Information Technology

AssetsDepreciation
Capital expenditures

LifestyleRefinement

Eye Care

Electro-Optics

Photonics

Vision Care

Health Care

CrystalService¥ 94,875
10,04012,266¥ 4,800
117
75¥ 67,957
4,432
4,552

¥ 12,504
472
259¥10,062626
460¥ 6,022111
22

Eliminations
and Corporate

Consolidated¥ 196,220 ¥43,121
15,798253
17,634136¥ 239,341
16,051
17,770Total

Notes:1. The Company and consolidated subsidiaries primarily engage in the manufacture and sale of products in six major segments groupedon the basis of similarities in the types, nature and market of the products. The six segments, namely, Electro-Optics, Photonics,
Vision Care, Health Care, Crystal and Service, consist primarily of the following products:
Electro-Optics: Photomasks and mask blanks for semiconductors, masks for liquid-crystal display (LCD), liquid-crystal devices, glass
disks for hard disk drives (HDDs), optical lenses, optical glasses, electronic glass, optical communication related products, etc.
Photonics:
Laser equipment (industrial, research and laboratory, and medical purposes), etc.
Vision Care: Eyeglasses, eyeglass frames, ophthalmic equipment, etc.
Health Care: Contact lenses and related accessories, intraocular lenses, hearing aids, medical equipment, etc.
Crystal:Crystal glass products
Service:
Design of information systems, placement of temporary staff, etc.
2. Corporate operating expenses consist primarily of the administration expenses of the Company and two foreign holding companies,
which are not allocated to industry segments. Corporate operating expenses for the years ended March 31, 2002, 2001 and 2000
were ¥1,981 million ($14,895 thousand), ¥2,328 million and ¥2,889 million, respectively.

49

3. Corporate assets consist primarily of cash, time deposits, short-term investments, investments securities and administrative assets of
the Company and the two foreign holding companies. Corporate assets as of March 31, 2002, 2001 and 2000 were ¥51,632 million($388,211 thousand), ¥47,211 million and ¥49,867 million, respectively.
4. Consolidated operating expenses are equal to the total of cost of sales and selling, general and administrative expenses shown in theaccompanying consolidated statements of income.
5. Effective April 1, 2000, the Company and domestic consolidated subsidiaries adopted a new accounting standard for employees’
retirement benefits. The adoption of the new accounting standard had a negative effect on operating income as follows: ElectroOptics, Vision Care, Health Care, Crystal, Service and Corporate of ¥544 million, ¥440 million, ¥166 million, ¥158 million, ¥112
million and ¥100 million, respectively.

(2) Geographical Segments
The geographical segments of the Company and consolidated subsidiaries for the years ended March 31, 2002, 2001 and 2000
are summarized as follows:
Millions of Yen
2002
North America

EuropeAsia¥ 159,368
14,964¥ 36,985
113¥ 28,964
1,196¥ 9,948
40,330Total sales
Operating expenses

174,332
143,426

37,09835,13930,16025,91850,278
43,109Operating income¥ 30,906¥ 1,959¥ 4,242¥ 7,169¥

Assets¥ 138,963¥ 21,000¥ 30,356¥ 55,412¥ 245,731 ¥32,337

Sales to customers
Interarea transfers

Total

Eliminations
and CorporateJapan

Consolidated¥ 235,265¥ 235,265
56,603 ¥(56,603)
291,868
247,592(56,603)(56,225)

44,276 ¥235,265
191,367(378) ¥ 43,898¥ 278,068

Thousands of U.S. Dollars
2002
Japan

Sales to customers
Interarea transfers

North America

Europe

Asia

Total

Eliminations
and Corporate

Consolidated$ 1,198,256 $ 278,083 $ 217,774 $ 74,797 $ 1,768,910$ 1,768,910
112,511849
8,993 303,233
425,586 $(425,586)

Total sales
Operating expenses

1,310,767
1,078,391

278,932
264,203226,767
194,872

232,376 $ 14,729 $

378,030
324,128

2,194,496 (425,586) 1,768,910
1,861,594 (422,744) 1,438,850

Operating income$

Assets$ 1,044,835 $ 157,895 $ 228,241 $ 416,631 $ 1,847,602 $ 243,135 $ 2,090,737

31,895 $ 53,902 $

332,902 $ (2,842)$

330,060

Millions of Yen
2001
North America

EuropeAsia¥ 168,856
17,928¥ 34,210
548¥ 24,944
893¥ 8,792
39,237

Total sales
Operating expenses

186,784
150,991

34,75834,29525,837
22,811

48,02941,131

Operating income¥ 35,793¥

463¥ 3,026¥ 6,898¥

Assets¥ 139,320¥ 21,073¥ 27,000¥48,144¥ 235,537 ¥ 32,074 ¥ 267,611

Sales to customers
Interarea transfers

Total

Eliminations
and CorporateJapan

Consolidated¥ 236,802¥ 236,802
58,606 ¥ (58,606)
295,408249,228(58,606)(57,554)

236,802
191,674

46,180 ¥ (1,052) ¥ 45,128

Millions of Yen
2000
North America

EuropeAsia¥ 147,553
18,123¥ 22,372
204¥ 23,109626¥ 8,076
29,967

Total sales
Operating expenses

165,676
138,465

22,576
21,971

23,735
20,14038,04333,519Operating income¥ 27,211¥605¥ 3,595¥ 4,524¥

Assets¥ 127,775¥ 15,255¥ 23,101¥ 39,188¥ 205,319 ¥ 34,022 ¥ 239,341

Sales to customers
Interarea transfers

Total

Eliminations
and CorporateJapan

Consolidated¥ 201,110¥ 201,110
48,920 ¥ (48,920)
250,030
214,095(48,920)(47,673)

201,110
166,42235,935 ¥ (1,247) ¥ 34,688

50

Notes:1. The Company and consolidated subsidiaries are summarized in four segments by geographic area based on the countries where theGroup is located. The segments consisted of the following countries:

North America:

United States of America, Canada, etc.

Europe:Netherlands, Germany, United Kingdom, etc.

Asia:

Singapore, Thailand, Republic of Korea, Taiwan, etc.

2. Corporate operating expenses consist primarily of the administration expenses of the Company, which are not allocated to segments
by geographic area. Corporate operating expenses for the years ended March 31, 2002, 2001 and 2000 were ¥1,771 million ($13,316
thousand), ¥2,144 million and ¥2,716 million, respectively.
3. Corporate assets consist primarily of cash, time deposits, short-term investments, investments securities and administrative assets of
the Company. Corporate assets as of March 31, 2002, 2001 and 2000 were ¥48,342 million ($363,474 thousand), ¥44,664 millionand ¥47,699 million, respectively.
4. Consolidated operating expenses are equal to the total of cost of sales and selling, general and administrative expenses shown in theaccompanying consolidated statements of income.
5. Effective April 1, 2000, the Company and domestic consolidated subsidiaries adopted a new accounting standard for employees’
retirement benefits. The adoption of the new accounting standard had a negative effect on operating income of Japan and Corporateof ¥1,420 million and ¥100 million, respectively.

(3) Sales to Foreign Customers
The sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2002, 2001 and2000 are summarized as follows:
Millions of Yen
2002

Overseas sales (A)Consolidated sales (B)(A)/(B)

North America

Europe

Asia

Other

Total

¥39,746¥38,144¥25,080

¥47

16.9%

16.2%

10.7%

0.0%

¥103,017
235,265
43.8%

Thousands of U.S. Dollars
2002
North America

Overseas sales
Consolidated sales

EuropeAsia$298,842 $286,797 $188,572

Other

Total

$353 $ 774,564
1,768,910

Millions of Yen
2001

Overseas sales (A)Consolidated sales (B)(A)/(B)

North America

Europe

Asia

Other

Total

¥36,184¥35,870¥27,492

¥45

15.3%

15.2%

11.6%

0.0%

¥ 99,591
236,802
42.1%

Millions of Yen
2000

Overseas sales (A)Consolidated sales (B)(A)/(B)

North America

Europe

Asia

Other

Total

¥22,099¥27,841¥24,257

¥70

11.0%

13.8%

12.1%

0.0%

¥ 74,267
201,11036.9%

Note: The Company and consolidated subsidiaries are summarized in four segments by geographic area based on the countries where thecustomers are located. The segments consisted of the following countries:

North America:

United States of America, Canada, etc.

Europe:Netherlands, Germany, United Kingdom, etc.

Asia:

Singapore, Thailand, Republic of Korea, Taiwan, etc.

Other:

Saudi Arabia and Brazil, etc.

51

Corporate Data
(As of March 31, 2002)

Established
November 1, 1941
Paid-in Capital¥6,264,201,967
Number of Employees
Male 2,360 Average age 39.0 years
Female 782
33.6
Total 3,142
38.2
Date for the Settlement of Accounts
March 31
General Shareholders’ Meeting
June

Board of Directors (As of June 21, 2002)
President and CEO
Hiroshi Suzuki
Executive Managing Director
Kenji Ema
Chief Financial Officer
Director
Hiroaki Tanji
Director
Takeo Shiina
Senior Advisor of IBM Japan, Ltd.
Director
Naotaka Saeki Senior Advisor of UFJ Bank, Limited
Director
Yuzaburo Mogi President and CEO of Kikkoman
Corporation

Standing Corporate Auditor
Takashi Kato
Standing Corporate Auditor
Yasuo Ozawa
Standing Corporate Auditor
Katsuhiro Matsunaga
Corporate Auditor
Hideaki Iizuka

HOYA Group (As of March 31, 2002)

Global Headquarters(Formulating group strategy)

Information
Technology

Eye CareCrystal(Area)

Supporting Legal and Financial Operations

Japan

Asia

(Holding Company)

North America(Holding Company)

Europe(Holding Company)

Global Business Expansion

52

Investor Information(As of March 31, 2002)

Listing of the Company’s SharesFirst Sections of the Tokyo and the Nagoya Stock
Exchanges

Breakdown of Shareholders—Ownership—Number of Shareholders
Other corporate investors
2.3%

Individuals, Other
14.5%

Number of Shares of Common Stock
Authorized: 320,000,000
Issued: 116,124,405

Financial institutions 3.0%
Foreign investors
7.1%

Trading Unit
100 shares

Financial
institutions
46.0%

Foreign investors
34.2%

Number of Shareholders
6,872

Individuals, Other
87.6%

Other corporate investors
5.3%

Common Stock Price Range
2001
High
Low
Jan.–Mar. ¥9,660 ¥6,560
Apr.–June
9,300
7,230
July–Sept.
8,450
5,740
Oct.–Dec.
8,050
6,100

2002
High
Low
¥9,370 ¥7,250

Principal Shareholders

Shareholders

Shareholdings

1 Japan Trustee Services Bank, Ltd. (Trust Account) 8,972,600
2 The Mitsubishi Trust and Banking Corp.
(Trust Account)
8,436,500
3 The Dai-ichi Mutual Life Insurance Company 7,715,300
4 Nippon Life Insurance Company
5,575,847
5 State Street Bank and Trust Company
5,573,620
6 The Chase Manhattan Bank N.A. London
5,364,100
7 UFJ Trust Bank Ltd. (Trust Account A)
3,990,100
8 Suzuki International Ltd.
3,850,000
9 The Chase Manhattan Bank, N.A. London,
SL Omnibus Account3,676,552
10 Kohei Yamanaka
3,442,953
Above total
56,597,572

Transfer Agent of Common Stock Handling Office
UFJ Trust Bank Ltd.
Corporate Agency Department
10-11, Higashisuna 7-chome, Koto-ku,
Tokyo 137-8081, Japan
Tel. 03-5683-5111
Note : The Toyo Trust and Banking Company, Limitedchanged its corporate name to UFJ Trust Bank
Limited effective January 15, 2002.

Percentage
of totalshares issued

7.72
7.26
6.64
4.80
4.79
4.61
3.43
3.31
3.16
2.96
48.73

Common Stock Price Range and Trading Volume
Stock Price

Trading Volume(Yen)(Thousand shares)

12,00018,00010,00015,0008,000

12,000

6,000

9,000

4,000

6,000

2,000

3,000

0

4

5

6

7

8

9

10

FY2001

53

11

12

1

2

3

4

5

6

7

8

9

10

FY2002

11

12

1

2

3

0

Hoya’s Timeline(As of March 31, 2002)

1941
November An optical glass production plant was established in the cityof Hoya, in metropolitan Tokyo, and production of opticalglass was initiated.

1991
March

Glass disks for HDDs were launched.

1993
October

Hoya Group’s Philosophy of Environment was established.

1944
August

The plant was incorporated with capital of ¥1.2 million.

1994
April

1945
October

Crystal products were introduced.

1952
February The manufacture of optical glass BK7 resumed.

1995
June

1960
November The Optics Division’s Showa Plant (currently Akishima Plant)
was completed in Tokyo. The Company merged with three
affiliates.

1996
August1961
October
1962
May
October
1963
May
1967
April

Hoya was listed on the Second Section of the Tokyo Stock
Exchange.
The manufacture of eyeglass lenses commenced.
Hoya was listed on the Second Section of the Nagoya Stock
Exchange.
The Crystal Division’s Musashi Plant was completed.
The Vision Care Division launched sales of progressive
multifocal lenses.

1972
December Sales of soft contact lenses began.
1973
February The Company’s listings were advanced to the First Section of
the Tokyo and Nagoya Stock Exchanges.
1974
January

1982
October
1983
January

1984
AugustOctober
1985
April
1986
October

The Electronics Division’s Nagasaka Plant was completed,and the production of IC substrates began. Hoya’s on-line
network was introduced in the Vision Care Division.
Hoya Electronics Co., Ltd., merged with the parent company.

Hoya introduced an outside director system.

Hoya formed an alliance with IBM to develop a nextgeneration glass disk for HDDs.
November Kumamoto Plant commenced operations as a photomask
manufacturing plant.
1997
April

Hoya introduced its “internal company system,” reorganizing
Group operations centered on two internal companies(Electro-Optics and Vision Care) and three subsidiaries (Hoya
Photonics, Inc., Hoya Healthcare Corporation, and Hoya
Crystal Corporation).
Hoya implemented ERP R/3, an enterprise resource planningsystem developed by SAP AG of Germany.
May
Hoya Holdings Asia Pacific Pte Ltd. was established as thethird regional holding company after Hoya Holdings N.V.
(currently Hoya Lens Europe N.V.) and Hoya Holdings, Inc.,
the holding companies for Europe and North America,
respectively.
July
The Kodama Plant was transferred to Hoya Healthcare
Corporation, and the Musashi Plant was transferred to Hoya
Crystal Corporation.
September Hoya Group’s Philosophy of Environment was revised and an
Environmental Card distributed to every employee.
December Hoya Lens Deutschland GmbH became the first Group
company to receive ISO 14001 certification.
1998
April

The construction of the Hachioji Plant in the Electronics
Division was completed, and the production of IC
photomasks commenced.

Hoya began the quarterly release of consolidated financial
results.
The Vision Care Company’s Itsukaichi plant became theGroup’s first domestic facility to receive ISO 14001 certification.

The current Head Office was completed.
Hoya Lens Corporation and Hoya Crystal Corporation
merged with the parent company.

1999
February All major domestic plants received ISO 14001 certification.
September Hoya acquired Belgian eyeglass manufacturer Buchmann
Optical Industries N.V.

The Kodama Plant was completed for medical-related
production and research.
The R&D Center was completed in the city of Akishima.

1987
June
The production of intraocular lenses (IOLs) commenced.
November The production of aspherical molded-glass lenses commenced.
1989
April

The Hoya Group was reorganized with the establishment of
the Electro-Optics Division, the Vision Care Division and theCrystal Division.

Hoya Europe B.V. of the Netherlands (currently Hoya Lens
Europe N.V.) and Hoya Corporation USA were established.

2000
April

July
2001
May
OctoberNovember

Hoya acquired Optical Resources Group, Inc. (ORI), a
processor and marketer of eyeglasses in the United States.
(Integrated into Hoya Corporation in March 2001)
Hoya acquired the semiconductor photomask production
division of Oki Electric Industry Co., Ltd.
Hoya began marketing HOYALUX Summit Pro and NuLux
lenses that use EYRY, a high-index, plastic lens material.
Hoya began manufacturing soft intraocular lenses.
Hoya celebrated its 60th anniversary.
54

Hoya Directory(As of June 30, 2002)

HOYA CORPORATION

Overseas Branches

7-5, Naka-Ochiai 2-chome,
Shinjuku-ku, Tokyo
161-8525, JapanTEL (03) 3952-1151<Blanks Division>
EUROPE BRANCH
Bilton House, 54/58 Uxbridge Road,
Ealing, London, W5 2ST, U.K.
TEL 020-8579-6939<Mask Division>
SINGAPORE REPRESENTATIVE OFFICE
30 Cecil Street, Level 15#11 Prudential Tower, Singapore 049712
TEL 6232-2313

Q.S.A, OPTICAL
580 Nutmeg Rd. N S., Windsor,
CT 06074-2458 U.S.A.
TEL 800-722-7659
SIERRA OPTICAL
4757 Morena Blvd., San Diego,
CA 92117 U.S.A.
TEL 858-490-3490
MUELLER OPTICAL
301 Vision Dr., Columbia,
IL 62236 U.S.A.
TEL 800-279-3721<Vision Care Company>
HOYA OPTICAL LABORATORIESHEADQUARTERS
651E, Corporate Drive, Lewisville,
Texas 75057-6403 U.S.A.
TEL 972-221-4141
3-D OPTICAL
1370 S. Bertelsen Rd., Eugene,
OR 97402 U.S.A.
TEL 541-683-3898
ADVANCE LENS LAB
94 Pelret Parkway, Berea, Ohio 44017 U.S.A.
TEL 800-861-3661
BENEDICT OPTICAL
651E, Corporate Drive, Lewisville,
Texas 75057-6403 U.S.A.
TEL 972-221-4141
COLUMBIAN BIFOCAL
3880 SE 8th Ave. Portland,
OR 97202-3704 U.S.A.
TEL 800-547-8064
CB SALTLAKE
1802 W Alexander W valley UT 84119 U.S.A.
TEL 801-975-9800
MARTIN OPTICAL SERVICE
1400 Carpenter Ln. Modesto,
CA 95351 U.S.A.
TEL 800-692-5730

55

PROGRESSIVE LENS LABORATORIES
12345-B Starkey Rd., Largo,
FL 33773 U.S.A.
TEL 800-882-8131

SOUND OPTICAL LABORATORIES
2330 S. 78th Street Tacoma,
WA 98409-9051 U.S.A.
TEL 800-7600-6098
MIDWEST OPTICAL LABORATORIES
777 Zapata Drive, Fairborn,
OH 45324 U.S.A.
TEL 800-762-9504

Domestic Subsidiaries and Affiliates

Overseas Subsidiaries and Affiliates<Information Technology>

Asia and Oceania

HOYA OPTICS CORPORATION
109-2, Aza-Shimoshinden,
Oaza-Araku, Iruma-shi, Saitama 358 JapanTEL 042-964-1525

HOYA HOLDINGS ASIA PACIFIC PTE
LTD.
138 Cecil Street, #08-03 Cecil Court,
Singapore 069538
TEL 6323-1151

HOYA CONTINUUM CORPORATIONFirst Okada Building,
3-5, Shiba 4-chome, Minato-ku,
Tokyo 108-0014, JapanTEL 03-5730-3096
HOYA-SCHOTT CORPORATION*
3rd Floor, 711 Building,
11-8, Shinjuku 7-chome,
Shinjuku-ku, Tokyo 160-0023, JapanTEL 03-3369-6911
NH TECHNO GLASS CORPORATION*
6th Floor, Keihin Tatemono Daiichi Building,
12-20, Shin-Yokohama 2-chome,
Kohoku-ku, Yokohama,
Kanagawa 222-0033, JapanTEL 045-475-2905<Eye Care>
HOYA HEALTHCARE CORPORATION
7-5, Naka-ochiai 2-chome,
Shinjuku-ku, Tokyo 161-8525, JapanTEL 03-3950-6011<Lifestyle Refinement>
HOYA CRYSTAL CORPORATION
2nd Floor, HOYA Marketing Building,
29-9, Takadanobaba 1-chome,
Shinjuku-ku, Tokyo 169-8661, JapanTEL 03-3205-1821
HOYA CRYSTAL SHOP CORPORATION
1st Floor, HOYA Marketing Building,
29-9, Takadanobaba 1-chome,
Shinjuku-ku, Tokyo 169-8661, JapanTEL 03-5285-2430
HOYA SERVICE CORPORATION
10th Floor, HOYA Marketing Building,
29-9, Takadanobaba 1-chome,
Shinjuku-ku, Tokyo 169-8661, JapanTEL 03-3232-7671

HOYA LENS AUSTRALIA PTY. LTD.
44-54 Bourke Road, Alexandria, Sydney,
N.S.W. Australia 2015
TEL 02-96981577
HOYA LENS TAIWAN LTD.
3F, No.146, Sung Chiang Rd., Taipei Taiwan
TEL 02-25673481

HOYA PHOTONICS SINGAPORE PTE
LTD.
83 Science Park Drive #03-01/02, The Curie
Singapore Science Park I, Singapore 118258
TEL 6775-3911

THAI HOYA LENS LTD.
Asia Building 11F, 294/1 Phayathai Rd.,
Bangkok 10400, Thailand
TEL 02-2154691

HOYA MAGNETICS SINGAPORE PTE
LTD.
#3, Tuas, Link2, Singapore 638552
TEL 6863-2911

HOYA LENS THAILAND LTD.
392/1 Moo 2 Phaholyothin Rd., Prachatipat,
Thanyaburi, Patumthani 12130, Thailand
TEL 02-9012021

HOYA GLASS DISK (THAILAND) LTD.
Northern Region Industrial Estate 60/26 Moo
4 Tambol Banklang, Amphur Muang,
Lamphun, 51000 Thailand
TEL 53-581-314

HOYA LENS KOREA CO., LTD.
3rd Floor of Yunil Building, 1443-15, SeochoDong, Seocho-gu, Seoul,137-865, Korea
TEL 02-5851911

HOYA OPTICAL (ASIA) CO., LTD.
Suite 3101-2, Tower 6, The Gateway,
9 Canton Rd., Tsim Sha Tsui,
Kowloon, Hong Kong
TEL 2723-6883
HOYA OPTICS (THAILAND) LTD.
Northern Region Industrial Estate 60/31 Moo
4 Tambol Banklang, Amphur Muang,
Lamphun, 51000 Thailand
TEL 53-581-314
KOREA OPTICAL GLASS CO., LTD.
973, Yangduk Dong, Masan, Korea
TEL 055-2926180
HOYA OPTICAL TAIWAN CO., LTD.
118, 1st Road, Taichung Industrial Zone,
Taichung, Taiwan, R.O.C.
TEL 04-23593505
HOYA OPTO-ELECTRONICS QINGDAOLTD.
South Side, Mid-section of Songhuajiang
Road, Qingdao Economic & Technological
Development Zone,
Qingdao City, Shandong Province, China
TEL 532-6829104

HOYA LENS GUANGZHOU LTD.
Zhicheng Dong Rd., Guangzhou Economic &Technological Development District,
Guangzhou, 510730, P.R.China
TEL 020-82223999
HOYA LENS HONG KONG LTD.
16/F, Unison Industrial Centre, 27-31 Au Pui
Wan Street, Fo Tan, Shatin, N.T. Hong Kong
TEL 2556-5266
MALAYSIAN HOYA LENS SDN. BHD.
No.6 Jalan 7/32A Off 6 1/2 Miles, Jalan
Kepong, 52000 Kuala Lumpur, Malaysia
TEL 03-6258-8977
HOYA LENS (S) PTE LTD.
315 Outram Rd., #02-05 Tan Boon Liat
Building, Singapore 169074
TEL 6221-0055
HOYA LENS PHILIPPINES, INC.
10th Floor, Sterling Centre, cor, Ormaza &Dela Rosa Sts., Legaspi Village, Makati City,
Philippines
TEL 02-7517174

56

Europe
HOYA LENS EUROPE N.V.
Amsterdamseweg 29, 1422 AC Uithoorn,
The Netherlands
TEL 0297-514350
HOYA LENS NEDERLAND B.V.
Amsterdamseweg 27, 1422 AC Uithoorn,
The Netherlands
TEL 0297-514222
HOYA LENS FRANCE S.A.S.
Rue Willy Brandt-ZA Pariest, F-77184
Emerainville, France
TEL 01-60377250
HOYA LENS FINLAND OY
Mikkolantie 1, FIN-00640 Helsinki, Finland
TEL 09-72884100
HOYA LENS SWEDEN AB
Scheelegatan 15, 212 28 Malmö, Sweden
TEL 040-6802200
HOYA LENS UK LIMITED
Industrial Estate, Wrexham LL13 9UA,
United Kingdom
TEL 01978-663150
HOYA LENS IBERIA S.A.
Avdan Cañada, 54 28820
Coslada (Madrid) SpainTEL 91-6603510
HOYA LENS ITALIA S.P.A.
Via Bernardino Zenale 27 20024 Garbagnate
Milanese-Milano, Italy
TEL 02-990711
HOYA LENS DEUTSCHLAND GMBH
Hoya-Lens-Strasse 1, 79379 Mülheim,
Germany
TEL 07631-186-0

HOYA LENS POLAND SP. Z.O.O.
Olkuska 9, 02-604 Warszawa, Poland
TEL 22-6461200
HOYA LENS BELGIUM N.V.
Lieven Gevaertstraat 15 B-2950 Kapellen
Belgium
TEL 3 660 01 00
HOYA LENS HUNGARY RT
Telek u, 3 H-1152 Budapest, Hungary
TEL 1 305 85 10
HOYA LENS MANUFACTURINGHUNGARY RT
18, Ipari u. H-4702 Mateszalka, Hungary
TEL 44 418 200
North America
HOYA HOLDINGS, INC.
101 Metro Drive Suite 500, CA 95110, U.S.A.
TEL 408-441-0400
HOYA CORPORATION USA
101 Metro Drive Suite 500, CA 95110, U.S.A.
TEL 408-441-3300

HOYA LENS OF AMERICA INC.
13 Francis J. Clarke Circle Bethel,
CT 06801-2846, U.S.A.
TEL 203-790-0171
EAGLE OPTICS, INC.
591-F Thornton Rd. Lithia Springs,
GA 30122, U.S.A.
TEL 770-944-1800
HOYA LENS MEXICO S.A. DE C.V.
1 Tuxpan #54, Despacho 808 Col. Roma Sur
Mexico D.F. Del Cuauhtemoc CP 06760,
MexicoTEL 5-2642211
HOYA LENS CANADA, INC.
1555 Bonhill Road, Unites 4&5 Mississauga,
Ontario,Canada L5T 1Y5
TEL 905-5650577
HOYA CRYSTAL, INC.
41 Madison Ave., 9th Floor, New York,NY 10010, U.S.A.
TEL 212-679-3100*Equity-method affiliates

HOYA PHOTONICS, INC.
3150 Central Expressway, Santa Clara,
CA 95051, U.S.A.
TEL 408-727-3240
NEW CHROMEX, INC.
2705-B Pan American Freeway, NE,
Albuquerque, NM 87107, U.S.A.
TEL 505-344-6270

For additional information about this ourCompany, contact:
Investor Relations

7-5, Naka-Ochiai 2-chome,
Shinjuku-ku, Tokyo 161-8525, JapanTEL (03) 3952-1160
FAX (03) 3952-0726
URL http://www.hoya.co.jp/
57

7-5, Naka-Ochiai 2-chome, Shinjuku-ku, Tokyo 161-8525, Japan

This annual report is printed on recycled paper.
Printed in Japan