Report on Results for the Fiscal Year Ended March 31, 2015
Net sales of the HOYA Group for ﬁscal 2015 (ended March 31, 2015) amounted to ¥489.9 billion, representing an
increase of 14.6% over the previous ﬁscal year. Pretax proﬁt was ¥118.2 billion, 38.3% higher year on year, and net
proﬁt amounted to ¥92.9 billion, representing a 54.5% increase over ﬁscal 2014. HOYA currently positions its Life
Care business segment as a growth ﬁeld, while, on the one hand, the role of the Information Technology segment
as a mature ﬁeld is to generate stable earnings. Based on this positioning, HOYA is continuing to expand its
business portfolio. Both the Life Care and Information Technology segments reported increases in sales and proﬁt.
In ﬁscal 2015, as the Life Care segment continued steady growth, the Information Technology segment showedmajor increases in proﬁt, supported by stronger demand than was expected. In the Information Technology
segment in particular, HOYA made progress in reducing costs as a result of the acceleration of structural reforms inrecent years based on a conservative market outlook. In the midst of strong market demand, HOYA has been able
to respond successfully, and this has been responsible for the favorable results reported by the segment. However,our view that the Life Care segment will drive the accelerated growth of the HOYA Group in the long term remains
unchanged.
In the Life Care ﬁeld, HOYA reported a major increase in sales, due to expansion in sales of eyeglass lenses inoverseas markets and the consolidation of Seiko Optical Products Co., Ltd. (SOP) at the end of the previous ﬁscal
year. In the endoscopes business, over the past two to three years, HOYA has concentrated on tapping into
demand in emerging countries and regions, including Eastern Europe, the Middle East, and Russia. However, due
to such factors as the deterioration of political conditions in those areas, sales remained at the same level as in theprevious year. In the contact lenses retailing business, as a result of the impact of the increase in Japan’s
consumption tax, sales were below the previous ﬁscal year. However, sales of intraocular lenses for cataract
surgery have recovered steadily from the recall conducted previously, and sales expanded. As a result of thesedevelopments, sales of the Life Care segment were ¥306.6 billion, representing a major increase of 15.5% year on
year. Segment pretax proﬁt was ¥52.9 billion, an increase of 6.5% over the previous ﬁscal year.
In the Information Technology segment, among electronics-related products, demand for the replacement of PCs
accompanying the termination of Windows XP support and demand for servers and external hard disk drives(HDDs) as well as other applications was ﬁrm. As a result, the glass memory disks (substrates) for HDDs businessmade a major contribution to expansion in sales. In the imaging-related products business, as demand for digital
cameras has stagnated in recent years, HOYA has worked to develop lens products for new applications, such as
surveillance cameras, “action cameras” for recording sports and other outdoor activities, and automobile-mounted
cameras, and sales have increased. As a result of these activities, sales in the Information Technology segment
were ¥180.1 billion, up 13.1% from the previous ﬁscal year. Segment pretax proﬁt amounted to ¥57.3 billion,
representing a 59.8% increase year on year.
Performance by business segment is explained in detail in the messages from the Executive Officers of therespective segments. Please refer to these.

Copyright ©2015 HOYA GROUP

Performance in fiscal 2015

(Millions of yen)

FY2014FY2015Growth Rate

Consolidated Sales

427,575

489,961+14.6%

Consolidated Profit Before Tax

85,486

118,249+38.3%

Profit from Ordinary Operating Activities

81,117110,282+36.0%* “Proﬁt from Ordinary Operating activities” excludes ﬁnancial income/costs, share of proﬁt (loss) of associates, foreign exchange gains or losses, and other nonrecurring gains or losses from proﬁt before tax.

HOYA’s Business Portfolio Management and Outlook
The HOYA Group operates a range of different businesses simultaneously, and,while maintaining a balance among these businesses, HOYA’s basic management
stance is to conduct “business portfolio management” to secure proﬁtability,
stability, and growth for the Group as a whole. One of the features of HOYA Groupmanagement is the development and nurturing of niche markets where it candemonstrate its strengths, and maximize proﬁtability by capturing a high market
share in these markets. In other words, HOYA’s base strategy is to be “a big ﬁshin a small pond.” In the Information Technology ﬁeld, this structure has been put
into place, and there are many businesses where we already have a high market
share. As a result, we have secured relatively high proﬁtability in those markets.
On the other hand, market trends in these businesses are a factor determining
HOYA’s performance. In mature markets, we want to continue to secure stableearnings by anticipating future changes in the business environment andresponding promptly.
On the other hand, in the Life Care ﬁeld, there are businesses where we are not “abig ﬁsh in a small pond,” because within large markets, there are competitors thatare bigger than HOYA, and we are the No. 2 company. All our markets are
expected to expand in the long term, and there are domains where there isconsiderable room for growth. Going forward, the issue of most importance for
HOYA’s growth will be expanding its market share.
To expand market share, we will not make a frontal attack on competingcompanies, but further segment the markets by region and type of product andspecify the markets where we will compete (i.e., win). In these domains, we will
work to expand our market share by allocating resources on a priority basis. In other words, we will take theinitiative to divide up the large pond and create smaller ponds, and then cultivate large ﬁsh for the small ponds.
This is a task that will take time, but repeating these initiatives over periods of 10 or 20 years will be the mostefficient and realistic method for implementing the corporate strategy that HOYA has established of being “a big
ﬁsh in a small pond.”
HOYA’s current business portfolio management is the accumulation of past experiences of success and failure andis the result of a transitional process of choosing and exiting various businesses. When choosing to enter businessdomains, we emphasize logical thinking based on objective data. I think that HOYA is a company where reachingan internal consensus on corporate directions derived from objective data is relatively easy. The practice of making
decisions based on logical thinking is clearly recognized as the proper course of action, and the implementation ofthese actions is a matter of course. This practice was rooted in HOYA’s corporate culture before I became CEO.
The makeup of the current portfolio is deﬁnitely not optimal; I believe we should be constantly evolving theportfolio in response to changes in society and technology. Along with changes in the times, new markets comeinto being, and we want to focus on investing corporate resources in these new opportunities.

Copyright ©2015 HOYA GROUPA Closing Word about HOYA Management
HOYA is a collection of various businesses, including electronics,
imaging, health care, and medical, and we think of HOYA as aconcept encompassing all of these businesses. The ultimate
raison d’être for HOYA is to manage each of these businesses in
response to the needs of the times, efficiently, and on asustainable basis for the long term. To do this, we think HOYA as
a company must continue to undergo constant change. There
must be a form for HOYA that is superior to HOYA today, and weare constantly searching for HOYA’s ideal form.
Among issues faced today, we have focused on the globalizationof management. In today’s HOYA, where 90% of employees and
70% of sales are overseas, we realize that the functions of management have not necessarily been globalized. Our
globalization has not been according to the pattern of U.S. companies or European companies, and we are
seeking to develop a pattern of globalization that is distinctive to HOYA.
In closing, I invite you to watch HOYA’s continuing evolution with anticipation

Hiroshi Suzuki
President & CEO

Copyright ©2015 HOYA GROUP

Performance in Fiscal 2015
The Life Care Segment Reports Increases in Revenue and Profit
The Life Care Segment recorded revenue of ¥306.6 billion (up15.5% year on year). The eyeglass lenses business reported alarge increase in revenue overall, as revenues, principally inoverseas markets, expanded, and Seiko Optical Products(Seiko Eyeglass Lenses Sales) was consolidated into the HOYA
Group as of March 31, 2014. Retail revenues from contactlenses decreased because of the reactionary decline in sales
that followed in the wake of the surge in demand prior to theincrease in Japan’s consumption tax. Sales of endoscopes,
which were strong in the previous ﬁscal year, in Russia, theMiddle East, and elsewhere remained at the level of the priorﬁscal year in reaction to unstable conditions in those regions.
However, eyeglass lenses were a major growth driver, and, inthe Life Care business segment as a whole, revenues showeda major increase over the previous year. Segment pretax proﬁt
amounted to ¥52.9 billion, an increase of 6.5%, or ¥3.2 billion.
The ratio of pretax proﬁt to revenues was 17.3%

Long-Term Stable Growth Is Expected in the Life Care Segment
HOYA Life Care is focused on two domains. These are the eyerelated product markets and low-invasive medical devices. In
the eye-related ﬁeld, HOYA is focused on eyeglass lenses andcontact lenses which are part of our daily lives and play animportant role in our lives and intraocular lenses for thetreatment of cataracts, enabling us to see. In the low-invasive
device ﬁeld, we have applied the optical technology that wehave developed in the medical ﬁeld to develop endoscopes,
which contribute to early discovery and treatment of diseases,
laparoscopic surgical instruments, endoscope reprocessors,
prosthetic ﬁllers, and orthopedics implants.

Copyright ©2015 HOYA GROUP

Growth is expected in both of these ﬁelds along with theincrease in the aging population and expansion in middle-income population along with economic development in
the emerging markets, which are both forecast to bring expanded health care needs. Looking ahead, the demandfor better products and services will expand and medical needs will become more diverse. On the other hand, we
think that the initiatives in all countries to reduce medical costs and other factors will broaden the possibilities forbusiness expansion in many areas. In response to these trends, we will provide superior products and services,and, thereby, contribute to realizing healthy and comfortable lives for the peoples of the world.

Expansion in the Eyeglass Lenses Business
Eyeglass Lenses to Drive Growth in the Life Care Segment—Review of the Fiscal Year
During the year under review, within the Life Care segment, theeyeglasses business made major strides. In February 2013, theSeiko Eyeglass Lens development and manufacturing business of
Seiko Epson Corporation was acquired by HOYA. Thereafter, we
completed the acquisition of 50% of the shares of the eyeglassrelated sales business of Seiko Optical Products Co., Ltd., which isa subsidiary of Seiko Holdings Co., Ltd., and, as of March 31,
2014, it became a subsidiary of HOYA. As a result, we havebrought together research and development, manufacturing, andother functions which the three companies have brought to a highlevel on their own and are now strongly positioned to provide customers throughout the world with superior HOYA,
SEIKO, and PENTAX products and services across a broad product range.
In existing business domains also, we saw favorable growth in revenues, mainly in overseas markets, and reported
major expansion in the eyeglass lens business.
Expansion in the global market for eyeglass lenses is said likely to be in the 2% to 3% range, but, during theperiod under review, HOYA continued to grow market share. Particularly strong growth was reported in theEuropean markets. On the one hand, sales expanded signiﬁcantly through a major retail chain that we commenced
transactions with in fall 2013, and, on the other hand, we were able to show robust increases in sales to customer
segments other than major chain retailers. By product, sales of our new “MyStyle” progressive lenses, which aresuited to individual lifestyles, showed favorable expansion, and this contributed to overall growth in revenues.
Going forward, by strengthening our marketing tailored to each customer segment, we want to accelerate growthin sales. In the year under review, we continued to expand our footprint in emerging markets, as we established
our direct presence in Argentina and Turkey.
The North American market is one area where HOYA can expect major growth going forward. During the period
under review, sales of progressive lenses and specialty coated lenses, especially through independent eyeglass
stores, expanded and contributed to overall sales growth. Compared with other markets, HOYA’s share in North
America presents attractive growth potential. We are working to expand our range of products suited for the North
American market and strengthen our sales infrastructure. In addition, during the year under review, we began
operations at a state-of-the-art plant in Dallas, Texas, that concentrates our specialty processed productmanufacturing lines. By working effectively together with laboratories in various parts of North America, we are well
positioned to efficiently and promptly supply our customers.
South America presents additional growth opportunity for HOYA, as our direct presence there is limited to Brazil,
where we continued to gain market share, and the recently started Argentina operations.
In the Asia Paciﬁc region, revenue expanded, principally in Australia, Taiwan, South Korea, and elsewhere, and, asa result, we reported favorable performance. On the other hand, in the Japanese market, where we have a highmarket share, revenues for the ﬁscal year declined year on year along with the shrinkage in the market. Factors
accounting for this were a reactionary drop in demand following the surge in demand prior to an increase in the
consumption tax in April 2014 and trends in the market which have made sale of high-priced items more difficult.

Copyright ©2015 HOYA GROUP

Progress toward Integrating the Seiko Eyeglass Lenses Business
In February 2013, HOYA acquired an eyeglass lens development and manufacturing business from Seiko Epson.
Over approximately the last two years, we have completed the integration of these manufacturing anddevelopment functions with HOYA. In manufacturing, we optimized our production systems by consolidating Seiko
Epson’s plants, which were in separate locations in Japan and the Philippines, and focused on structuring a joint
production system with HOYA’s existing plants. In development, we realized increased productivity in
manufacturing in a short period of time by making use of the different product development technologies andmanufacturing technologies of the two companies. Looking to the future, we are expecting that this will bring new
possibilities for product development.
In marketing, we will position SEIKO eyeglass lenses as the premium brand and focus on expanding sales in
Europe, the Americas, and other developed markets. SEIKO eyeglass business due to its strong brand recognition
has signiﬁcant opportunities to expand outside Japan. Following the recent integration, we think it will be possible
to expand SEIKO brand sales at an accelerated pace by leveraging the geographical footprint of HOYA.

Aiming for Medium-Term Growth
Aiming for Expansion in Global Market Share
The global market for eyeglass lenses is expected to grow at between 2% and 3% annually for the coming few
years. In emerging markets of Asia and South America, we anticipate higher market growth fueled by better accessto health care and the rapidly expanding middle-class population. The demographic trend of aging population in
Europe and North America will continue. This will impact the growth of progressive lenses and other high-end
products as well as customized products. Overall, the global market is expected to show steady expansion. Amid
this environment, we think that HOYA, which ranks No. 2 internationally, is in an excellent position to accelerate its
growth. We will, therefore, focus on increasing our share in the markets of the industrialized countries, expanding
our coverage of the emerging markets, and increasing our global share..
In this year’s annual report, we have included a feature article on eyeglass lenses, which HOYA is now focusing on
as its growth driver. In this feature, we want to communicate HOYA’s strengths in this business by introducing
some of the employees who work in HOYA’s manufacturing plants and sales locations around the world—people
like these who have been the source of HOYA’s strength over the more than 60 years it has been in the eyeglasslens business.
Growth Potential of the Eyeglass Lenses BusinessWe look forward to your continuing understanding and support of HOYA’s business activities and hope you will
watch with anticipation our growth in the years ahead.

Girts Cimermans
Executive Officer Vision Company President

Copyright ©2015 HOYA GROUP

Performance in Fiscal 2015
Information Technology (IT) Segment Reports Major Increases in Sales and Income
As a result of structural reforms we have been implementing since the previous ﬁscal year, we have transformed
our business structure and are now able to maintain proﬁtability even in markets where substantial growth is notexpected. In addition, with the exception of the imaging-related products business, other markets have beenstronger than we initially assumed. As a consequence, sales of the IT segment amounted to ¥180.1 billion, 13.1%
above the previous ﬁscal year, and segment proﬁt was ¥57.3 billion, representing a gain of 59.8% year on year.
Analysis by product within the IT segment shows that glass substrates for hard disk drives (HDDs) turned in thestrongest performance. Initially, we had assumed that the notebook PC market would shrink, but, with the terminalof Microsoft’s support for Window XP, demand for the replacement of existing PCs was stronger than we had
forecast. Among non-PC applications also, demand was ﬁrm, including sales of external HDDs, and, along with thetrend toward larger memory capacity requirements, the number of disks per HDD is increasing. Moreover, demandfor HOYA’s glass disks for use in servers and game consoles continued to be ﬁrm. As a result, major increases insales and proﬁt were reported for glass substrates for HDDs.
Among semiconductor-related products, owing to favorable
conditions in the semiconductor industry throughout the ﬁscal
year, semiconductor manufacturers, who are the principal
customers for HOYA’s semiconductor-related products,
continued to engage in the active development of cutting-edge
technologies. This resulted in ﬁrm demand for higher-priced items
and contributed to improvement in the product mix and proﬁts.
Demand for middle- to low-end products, such as those for
infrastructure and installation in automobiles, was also strong.
Accordingly, unit volume of sales and unit prices held ﬁrm,
resulting in an increase in sales year on year.
In the liquid crystal display (LCD) related businesses, demand forhigh-precision, high-resolution photomasks for LCDs used insmartphones and tablet computers continued to be favorable.
Demand for photomasks for 4K and large LCDs for TVs was alsostrong, and sales rose year on year.
In the imaging-related products business, the market for digital
cameras, which are the main application for HOYA products in this business, is shrinking, and HOYA is
endeavoring to reduce its dependence on this application. Speciﬁc measures include focusing on new
applications, such as surveillance cameras, compact “action cameras” for recording sports and other outdoor
activities, and automobile-mounted cameras. We are making steady progress in this area, and proﬁtability in thisbusiness increased year on year.

Copyright ©2015 HOYA GROUP

Initiatives in Fiscal 2016
Our understanding is that, as the market for notebook PCs shrinks,
applications for glass substrates used in HDDs will expand beyond
external HDDs and servers to other areas, and this will be apositive development for HOYA. Previously, this business
depended strongly on notebook computers for its proﬁts, but, now
the ratio of sales for use in notebook PCs has fallen below 50%.
Looking ahead, we think that demand will continue to rise as sales
for use in external HDDs and servers continue to rise, and thenumber of disks per HDD unit increases. From a technology
perspective, next-generation HAMR (heat-assisted magnetic
recording) technology is expected to bring a dramatic increase in
HDD storage memory capacity. We view this as a good
opportunity for HOYA to demonstrate its superiority in the glass
substrate business, and we intend to give our full support tocustomers to meet their needs from both a technical and a supply
perspective as well as contribute to the realization of newtechnologies.
In the imaging-related product business, three product areas,
namely, optical materials, optical lenses, and lens units, accountfor about 80% of sales. By application, about 70% of theseproducts go into conventional digital cameras. We are continuing
to develop demand in new applications outside the ﬁeld of digital
cameras, including surveillance cameras, compact “action
cameras,” and automobile-mounted cameras, and we are aiming
to raise the ratio of new applications to 50% or more. Thus far, wehave supplied optical lenses, optical materials, and other related
products as discrete units suited to the designs of our digital
camera manufacturer customers. Speciﬁcally, we have operated
our business on a product-by-product basis, supplying opticalmaterials to lens polishing companies, optical lenses to lens unit
manufacturers, and lens units to camera manufacturers. However,going forward, we foresee that, among our customer groups, there
will be some customers who do not have the sophisticated opticaldesign technology that traditional camera manufacturers have.
Therefore, we will draw on our technology and manufacturingknow-how to process optical materials into lenses and goingfurther downstream to design and manufacture lens unit products.
By actively making proposals for such products, we will endeavor
to develop new markets. As one example of these activities, theyear before last, we developed the lens unit for smartphones thatincorporates the thinnest threefold zoom lenses module in the industry using our glass mold lens, which is one of
HOYA’s strengths. At present, we are in receipt of positive responses from several smartphone manufacturers. In
those business domains where it is necessary to actively develop different customer groups in the new areas, we
are working to strengthen our marketing functions and are focusing more sharply on structuring systems forformulating proposals that meet customer needs.
In the mask blanks for semiconductors business, we are expecting continued strong interest in the semiconductor
industry in cutting-edge ﬁelds next year and in subsequent years. We are working to gain an accurate grasp ofcustomer needs and respond to their technical requirements no matter what direction their advanced development
activities may take. This includes movements toward use of next-generation extreme ultraviolet lithography (EUVL).
Our aim will be to take the leadership in the creation of the cutting-edge blank market.

Copyright ©2015 HOYA GROUP

In the LCD-related product ﬁeld, we are assuming that there will continue to be a trend toward higher-precisionand higher-resolution units across the board from small and medium-sized to large panels, including thesmartphone and tablet computer ﬁelds. We are working to differentiate ourselves by responding to customer
needs accurately and promptly and increase our market share.

HOYA’s Core Competencies in the IT Field
HOYA conducts many business activities in the IT ﬁeld andsupplies products to meet differing market needs. Activities in ourbusiness domains are based on ﬁve technologies for glass
formation/melting/molding, polishing, cleaning, precision
processing, and membrane production. These are our corecompetencies. HOYA is organized according to divisions that
operate on a daily basis as proﬁt centers with substantial authority
delegated to them. Each of these divisions further develops these
corporate technologies optimally for its own business activities. As
a result, these divisions are “big ﬁsh in small ponds,” having
superior competitive power in their own niche markets, andmaintain high proﬁtability.
On the other hand, depending on the business, it may benecessary to develop new customers in different ﬁelds. We would
like to review and put these ﬁve core technologies in order tounderstand the necessity of developing and making effective useof them in other ﬁelds and prioritizing the issues we should address. In addition, the HOYA Group has not typically
moved personnel across existing divisions, but, instead, the typical model has been for technical personnel tospend many years in one business accumulating experience and specializing in one technical ﬁeld. However, since
I became COO of the IT segment, I have placed more emphasis on the interchange of technical personnel andactively reassigned personnel across divisional lines. As a result, we have worked to transfer technologies to otherdivisions and raise the overall technological level of the Group. I have also taken more active initiatives thanpreviously in expanding personnel to support HOYA’s technology.

Aiming for Stable Growth
The markets where HOYA has a presence within the IT ﬁeld areassessed as mature markets, but, because we look to futuretechnological needs and stay ahead of our competitors, wethink there is considerable room for growth in these businesses.
Also, in each of these businesses, since we believe that thesource of proﬁt is technological capability, we have no intentionof ceasing our quest to strengthen our technologicalcapabilities. As the COO in charge of the IT segment, we wantto continue to contribute to raising the corporate value of the
HOYA Group by generating stable earnings and continuing ourstable growth.
We look forward to the continuing understanding and support of our shareholders.

Eiichiro Ikeda
Executive Officer & COO, Information Technology

Copyright ©2015 HOYA GROUP

Messages from the Outside Directors

I will contribute to HOYA’s sustained development drawing on my highly
developed “common sense” about management and my capability for asking
questions.
One of the roles of outside directors is to observe and give direction from their
independent perspective as representatives of the shareholders to the executive
officers. When it is judged that top management is acting inappropriately, we are
required to call a halt to that behavior. I think my role as an outside director is todraw on my “common sense” regarding management that I have gained as amember of top management elsewhere and perform a checking function in many
capacities making use of the Company’s ﬁnancial statements, conducting
dialogue with the market, responding in times of crisis, and in other situations.
To perform my outside director roles as observer and provider of direction, I
receive detailed reports from the business divisions containing not only ﬁnancial
data but also information on the strategy in the background that led to theseﬁnancial results. Since the commitment of executive officers to quarterly budgets
is outstanding, we directors also must gain a grasp of the core of problems and endeavor to pose accurate andsharp questions. At the Board of Directors’ meetings, we conduct in-depth discussions centering around theallocation of corporate resources. This creates a tense mood, and my feeling is that we are making decisions
speedily.
Another point about HOYA’s corporate governance is its Nomination Committee, Compensation Committee, andAudit Committee. For example, an important theme of discussion in meetings of the Nomination Committee is the
choice of candidates for director positions, which we outside directors also discuss. Another important topic thiscommittee discusses is the selection and training of the next generation of managers from a medium- to long-term
perspective. The Audit Committee conducts auditing activities based on themes for the period, and theCompensation Committee makes judgments on the validity of proposals made by the committee secretariat basedon criteria that clearly link compensation with performance. I believe these corporate governance committees arefunctioning effectively.
HOYA’s management is based on the strategy of being a “big ﬁsh in a small pond.” Under this strategy, HOYA
shows its strengths in developing niche markets, capturing high market shares and, thereby, maximizing proﬁts.
However, for HOYA to realize sustainable growth, my understanding is that it will be important for HOYA to nurturethe development of markets, or “small ponds,” within the Life Care business segment or attain further growththrough M&A. In the Life Care ﬁeld, I feel that there is still considerable room for HOYA to contribute to the world.

Copyright ©2015 HOYA GROUPAs an outside director, I want to fulﬁll my weighty responsibilities by working to observe and provide direction for
the executive officers and through drawing on my “common sense” about management and capability for asking
questions.

Mitsudo Urano
Outside Director

Copyright ©2015 HOYA GROUP

Messages from the Outside Directors

My role is to catch the attention of the executive officers and make them feel asense of positive tension to keep them on their toes. That is the mostimportant role of the outside directors.
I think our role as outside directors is to provide a checking function to conﬁrm
whether management is building healthy relationships with shareholders,
employees, business partners, and other stakeholders. We should make theexecutive officers, who are responsible for business execution, feel a sense of
positive tension and let them know that matters will not move forward if theoutside directors are not persuaded. We should also encourage them to pay
attention when there is a gap between what is regarded as common sense inside
the Company versus common sense on the outside. I think the roles required ofoutside directors are “catching the attention of and creating positive tension”
among the executive officers. I think the Board of Directors of HOYA are
explanations, and all the outside directors express their opinions.
As a “company-with-nomination committees,” HOYA has three committees, namely, the Nomination Committee,
Compensation Committee, and Audit Committee. All the members of these committees, including the chairperson,
are outside directors. The Nomination Committee, consisting entirely of outside directors, selects the candidates
for outside director and functions independently of the president. The Compensation Committee functions
effectively, basing its decisions on clearly deﬁned criteria for calculating directors’ bonuses, and provides
explanations of the decision process.
On the other hand, for systemic reasons, the Audit Committee seems to have issues to address. The audit
committees in a company-with-nomination committees differ from companies with full-time statutory auditors,
and, in part because they cannot look into the daily affairs of the company in detail, I think it is necessary for them
to be involved from the early stages when various reports are received from the accounting auditors. In view ofthis, I believe consideration should be given to the best ways of assuring the quality of auditing in companies withaudit committees.
One indispensable element for HOYA to attain sustainable growth is human resources, especially employing avariety of young people. Another important element will be creating a work environment where it is easy for young
people to work and be motivated as well as bring new people up in the organization.

Copyright ©2015 HOYA GROUPHOYA provides a broad range of products to the global markets. I think that HOYA has a corporate culture where
young people are able to have dreams and be motivated. Going forward also, as a natural extension of HOYA’s two
major segments of IT and Life Care, I believe it will be possible to realize further growth through continuing tocreate new products and businesses through innovation and technology development.

Takeo Takasu
Outside Director

Copyright ©2015 HOYA GROUP

Messages from the Outside Directors

I want HOYA to move upward to the next level in terms of the effective use ofhuman resources who have global-class capabilities and in terms of the use ofIT.
One of the roles of outside directors is to give advice and raise questions that are
not constrained by stereotypes in the Company. In the HOYA Board of Directors’
meetings, discussions are extremely open and straightforward, and sharpquestions are raised following explanations by persons in charge of various
businesses. These discussions are based on specialized knowledge andexperience gained through long years of business experience. Discussions withthe aim of attaining continuing growth are quite logical and active, while also
giving rise to a sense of positive tension. I also have the feeling that the executive
officers are listening sincerely and attentively to the opinions of the outside
directors.
Another role of the outside directors is to monitor the activities of top
management from the point of view of the shareholders. The directors have been
elected by the shareholders, and, as members of the Board of Directors, which performs an overall management
function, the directors observe and make judgments about the operation of the Company with an eye contributing
to its survival and prosperity.
HOYA’s businesses are growing and it always takes strong action in dealing with weak areas. For HOYA tocontinue to grow, it must establish a strong, dominant position in the IT ﬁeld and, in the Life Care ﬁeld, it must
accurately identify the markets where it will focus, differentiate its products and services, and build a strong, solidpresence. To do this, it will be important to draw on top-quality human resources from around the world. HOYA
employees hail from many countries around the world, and I believe that the active interchange of personnel
across business segments, including executive personnel, will be necessary. We hold ongoing discussions about
how to make the most-effective use of personnel.
Furthermore, as business become increasingly global, using IT actively to gather data from around the world
instantaneously, sharing information through making IT platforms compatible, and clarifying business processes
will be important issues to generate a sense of speed in the organization. The world’s global corporations are
placing strong emphasis on these areas, but I think HOYA has room for improvement in this area.
I am conﬁdent that HOYA will continue to growth as a company and respond to my expectations.

Yukako Uchinaga
Outside Director

Copyright ©2015 HOYA GROUP

Special Feature:

Growth Potential of
the Vision Care Business

From the Production

From the Operation

HOYA LENS THAILAND LTD. (HOLT)

President

Mr. Thanit Setthaphongwanit

RX Ayutthaya-1 GM

Ms. Thipparat Onpaen

Mass Ayutthaya-1 GM

Mr. Sompop Khumpeepong

Team members at HOLT sat down to provide a video report about
their unit’s role in Hoya’s expanding Vision Care business.

RX Business Management GM

Ms. Unchalee Chaiprapa

HOLT’s Role as Global Super Laboratory
HOYA LENS THAILAND LTD. is the largest eyeglass lenses manufacturing
company located in Thailand. HOLT has two mass-produced “stock lenses”
facilities and three special-order prescription “RX lenses” facilities in the
Ayutthaya and Patumthani areas, each playing a vital strategic role as thelargest within the HOYA VISION CARE Group. The vast majority of produced
lenses are exported to affiliated companies of the VISION CARE Group andcustomers all around the world. Further, HOLT plays an important role in the
integration process of HOYA with the development and manufacturingbusiness acquired from SEIKO EPSON.

Strengths of HOLT
HOLT operates the world’s largest-scale eyeglass lens manufacturing facility
ensuring best-in-class quality, high productivity, timely delivery, and excellent
customer service to supply a wide range of the products from the high-end tothe commodity level.

Copyright ©2015 HOYA GROUP

To meet the quality standards requested by customers and required by local
regulations, HOLT has implemented a total quality control system and an
advanced IT system. As to the IT system, the skilled local IT team is highly
responsive to a variety of detailed requirements from customers and toongoing manufacturing process improvements. In addition, the HOLT customer
service team regularly surveys customers to monitor and further improvecustomer satisfaction.
To satisfy the lead time requested by customers is very important for eye
glasses business, and HOLT’s location in Thailand is a big advantage in
reducing delivery times. In the case of shipment to Japan, HOLT ships by
overnight ﬂight and the products arrive at airports in the Tokyo and Kansai
regions early the next morning. From Bangkok’s international airport HOLT
ships products to some 40 destinations around the world.
HOLT’s high-quality operation has been well supported by the expertise,passion, and diligence of its employees. Since its founding in 1974, HOLT has
been developing local staff talent by providing training and career advancement opportunities. Localization of management has
progressed via close day-to-day collaboration between Thai and Japanese team members. In fact, most key positions at HOLT are
handled by local team members. Each employee of HOLT from management to operator in the production process is engaged in his
or her job emphasizing high quality and quick delivery to assure excellent service for customers.

Overcoming the Flood: Teamwork to Keep Moving Forward
The natural disaster of the October 2011 Thailand ﬂoods devastated HOLT’s facilities, completely ﬂooding the Ayutthaya plant anddamaging almost all of the equipment. First, HOLT team members quickly evaluated how to continue to support our customers going
forward and worked hard to reestablish production, shifting the production function to various regions by dispatching skilled
production staff and closely cooperating with the global HOYA organization as well as outside production machine vendors. As aresult, HOLT was able to fully restart operations as early as April 2012. Diligence and passion of HOLT’s staff and cooperation with
regions were the key to recover the production within only six months.
HOLT continues to play a leading role in Vision Care, closely coordinating with affiliated factories and laboratories around the worldand supporting ongoing improvements in quality and service going forward.

Copyright ©2015 HOYA GROUP

Special Feature:

Growth Potential of
the Vision Care Business

From the Production

From the Operation
HOYA Vision Care Company
Asia Headquarters
Chief Executive Officer,
HOYA Vision Care Company Asia Headquarters

Mr. Yasuyuki Nitta

Chief Operating Officer,
HOYA LENS SHANGHAI LTD.

Ms. Joice Xue

Vice General Manager,
Seiko Optical Trading (Shanghai) Co., Ltd.

Ms. Nichole Yan

In video interviews, team members at Asia HQ, HOYA Vision Care
Company, share their views on HOYA’s strategy for the Vision
Care business in the Asia-Paciﬁc region.

Current Status of the Vision Care Business in Asia
HOYA Vision Care Company Asia HQ is in charge of the countries and regions
such as Eastern Asia excluding Japan, Southeast Asia, Oceania, and India.
HOYA Vision Care Company started its business in Asia earlier than otherglobal players and in addition to a long business history in the region, as ourorigin is Japan, we know well Asian faces and Asian eyes.
Taking a long-term perspective, over the past decade, we estimate year-onyear growth in the eye glass market across Asia-Paciﬁc has been above midsingle digits, which has been clearly above the rest of the world. With themarket in India expanding in the double-digit range, the prospect forcontinuing growth in the Chinese market remains in the high-single digits
overall. The HOYA Vision Care business is growing at a higher rate than themarket growth of other regions. Particularly to China in ﬁscal 2015 (ended
March 31, 2015), we achieved about 20% sales growth as a result of the
inclusion of Seiko Optical Products.

Copyright ©2015 HOYA GROUP

General Manager of Suzhou OZMA

Ms. Chen Chunzhen

HOYA’s Future Growth Strategies in Asia-Pacific
HOYA Vision Care’s business model starts from a point of GDP per capita of
about US$3,000. In this sense, China, with its higher GDP per capita, offers
both a large so-called economic zone as well as a developed premium zone.
The premium zone in India is another promising opportunity.
China is a key market in which HOYA is rolling out these three brands totargeted segments. China is a huge and important market with as many as 400
million persons with myopia, and, based on some 20 years of experience on
the ground, HOYA is the leader in the progressive lens market there. At thesame time, the overall market penetration of progressive lenses in China is still
only about 2%, representing a substantial opportunity for growth. It is essential
for us to maximize this market growth opportunity that HOYA continuously
launches new series of progressive lenses from the entry level to the high-end
level drawing on our advantages that we have gained though global markets,
including our technology for design , our training to opticians, and sales andmarketing know-how.
In Shanghai, HOYA has for a number of years operated a facility named “HOYA Academy” which provides opticians in China with indepth training for overall skills for progressive lenses from selling, ﬁtting, edging, and dealing with customers’ complaints. This
training is one of the key marketing activities to develop the progressive lens market in China because the enlightenment of the
opticians is necessary for growth of sales for progressive lenses.

Integration with SEIKO Eyeglass Lenses
The eyeglass lenses business of SEIKO also includes frames. Therefore, rather than offer lenses and frames separately, we areoffering eyewear solutions with frames plus lenses. SEIKO is a well-known brand that has built its reputation among consumers for its
watch products.
By including SEIKO Optical Products, Inc. within the scope of HOYA’s consolidated ﬁnancial statements, we are now positioned tofurther develop two well-known brands, namely, SEIKO and PENTAX in all regions.
As HOYA Vision Care Company has developed its eyeglass lens business in Asia for many years, it has built a favorable reputation as
an eyeglass lenses manufacturer for the high quality of its products and the excellence of its services. HOYA is working to expand its
business activities in Asia by further developing these two brands, SEIKO and PENTAX, that are well-known among consumers,
In addition, in developing the SEIKO brand business, HOYA will draw fully on the capabilities of its plant in China and work to realize
maximum synergies.

Copyright ©2015 HOYA GROUPHOYA’s Growth Path

1973

2007

2012

The Company listed on the First Section of theTokyo Stock Exchanges.

As a result of the Tender O er, PENTAX became aconsolidated subsidiary of HOYA.

Acquired Japan Unitec, a metallic implant
manufacture

1995

2009

HOYA invited ﬁrst outside director.

HOYA terminated the Crystal business.

HOYA, SEIKO and EPSON; Agreements executed in
the ﬁeld of optical products business.

1997

The eyeglass division relocated its headquartersfrom the Netherlands to Thailand, home to a
cutting-edge production facility.

Hoya established the third regional area HQ in
Singapore, the area HQs for Europe and North
America, respectively.

1999
Acquired ISO 14001 in all principle factories in
Japan

2010
HOYA Healthcare Co. Ltd. was absorbed by HOYA
Corporation and became Eye Care Division.

2003

Disclosed its consolidated ﬁnancial statements inaccordance with ﬁrst-time adoption of IFRSs for theﬁscal year ended March 31, 2010.

HOYA establishes a company-with-committees
system.

2011
HOYA sold PENTAX Imaging Systems business to
Ricoh Company, Ltd.

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2013
HOYA acquired eyeglass lens development andmanufacturing business from Seiko Epson
Corporation.
HOYA acquired 30% of the shares of Seiko Optical
Products Co. Ltd., a wholly owned subsidiary of
SEIKO Holdings Corporation responsible for thesales of the eyeglass-related products.
HOYA acquired the majority shares of Wassenburg,a leading company in the ﬁeld of endoscope
reprocessing.

2014
Hoya completed the acquisition of a 50% stake in
Seiko Optical Products that became a consolidated
subsidiary.

HOYA in Figures

Sales of Products with No. 1
Global Market Shares

Pretax Profit Ratio to Sales

HOYA implements a strategy of being “a big ﬁsh in a small
pond,” and has specialized in product domains where it has

s a result of pursuing policies for establishing a position as aleading company in designated markets and maximizing

35.0%

24.1%

strengths and has established competitive positions. As aresult, 34.5% of its sales are accounted for by products thatproﬁt, in ﬁscal 2015 HOYA’s ratio of pretax proﬁt to sales
was 24.1%. Going forward, HOYA will continue not only tohave the leading global market share in their markets and is
working to increase this percentage.

emphasize the size of sales but also proﬁtability.

ROE

Total Return to Shareholders

16.5%¥76.8Bil.

HOYA has been a pioneer in Japan in encouraging anawareness of the efficient application of capital, and its
initiatives have included not only adoption of ROE but also
Shareholders’ Value Added (SVA) (the increase in corporate
value) as indicators of management performance.

Copyright ©2015 HOYA GROUP

In determining return to shareholders, HOYA gives

comprehensive consideration to its funding needs in themedium-to-long term and other factors, and then actively
distributes the remainder as dividends to shareholders andfor conducting share buybacks.

Percentage of Outside Directors on
the Board

Ratio of Non-Japanese in Senior
Management Positions at Overseas
Subsidiaries

In 2003, HOYA made the transition to a company withgovernance committees, and, since that time, has worked tostrengthen its corporate governance. As of June 2015, ﬁve

In all its businesses, HOYA pursues the development of
globally optimal production and marketing systems. As partof its distinctive globalization policy, HOYA appoints a high

⅚of HOYA’s six-member Board of Directors were outside
directors, and this Board composition enables effective andhighly transparent governance.

Copyright ©2015 HOYA GROUP

76.0%

percentage of non-Japanese personnel to senior
management positions in overseas subsidiaries.

Financial Review

Scope of Consolidation
As of March 31, 2015, the HOYA Group consisted of the HOYA CORPORATION, 118 consolidated subsidiaries (11of which are domestic and 107 are overseas), and 9 affiliates (4 of which are domestic and the other 5 overseas).
The HOYA Group is operated and managed through global consolidated Group management. The independent
management teams of business segments, including Information Technology and Life Care, are responsible for
executing management strategies.
Regional headquarters in the Americas, Europe, and Asia support business operations by strengthening
relationships with countries and areas in the respective regions, such as by providing legal support and conducting
internal audits. In particular, the HOYA Group has its Financial Headquarters (FHQ) in the Netherlands.

Adoption of the International Financial Reporting Standards
Beginning with the ﬁscal year ended March 31, 2011, the HOYA Group has prepared its consolidated ﬁnancial
statements and other documents in compliance with the International Financial Reporting Standards (IFRS)
pursuant to the ﬁrst paragraph, Article 120 of the Ordinance on Account of Companies.
With respect to reportable segments presented in the overview of operations by business category, the HOYA
Group divides its business into three reportable segments, based on IFRS. These segments are Information
Technology, Life Care, and Other Businesses.
The Information Technology segment handles electronics-related products used for the production ofsemiconductors, liquid crystals and hard drive disk drives (HDDs), and imaging-related products, such as digital
camera lenses. The Life Care segment deals with health care related products, such as eyeglass lenses andcontact lenses, as well as medical-related products, such as intraocular lenses and endoscopes. The Other
Business segment offers mainly information system services.

Copyright ©2015 HOYA GROUP

SalesDuring the consolidated ﬁscal year under review, although trends in the economy of the United States remained
ﬁrm, economies in the rest of the world remained caught in a state of uncertainty as the countries of Europe werestagnant, growth in the emerging countries slowed, and geopolitical risks emerged, including the Ukrainiansituation, wars in the Middle East, and other issues. In Japan, as a result of government economic policies andother factors, corporate performance, the employment environment, and other indicators showed improvement,
and, while the economy remained on a gradual recovery trend, the effects of the increase in the consumption tax inApril were prolonged.
As for the HOYA Group, in the Information Technology segment, sales of products related to smartphones andtablet computers and glass substrates for use in hard disks held ﬁrm, but sales of digital camera related products
continued to be weak. On the other hand, the Life Care segment reported substantial increases in sales of
eyeglass lenses in overseas markets, and the consolidation of the sales company for SEIKO eyeglass lenses at theend of the previous period also contributed to the rise in sales. In the contact lenses business, sales declined overthe course of the ﬁscal year inﬂuenced by a slump in demand that followed the surge in demand at end of theprevious year in advance of the increase in the consumption tax. With the exception of endoscopes, sales of
medical-related products held ﬁrm. In addition, the depreciation in the value of the yen also had a positive impact,
leading to Groupwide increases in sales over the previous year.
As a result, sales of continuing operations for the ﬁscal year under review amounted to ¥489,961 million,
representing an increase of 14.6% over the previous ﬁscal year.

Copyright ©2015 HOYA GROUP

ProfitProﬁt before tax was ¥118,249 million, while proﬁt for the year was ¥92,941 million, representing increases of
38.3% and 54.5%, respectively. These were supported by improved proﬁtability in the Information Technology
segment and foreign exchange conversion gains resulting from the strengthening of the U.S. dollar against the yen
and euro.
The ratio of proﬁt before tax to sales was 24.1%, a 4.1 percentage point increase from the preceding ﬁscal year’s
20.0%.

Copyright ©2015 HOYA GROUP

Outline of Consolidated Results by Business Segment
Information Technology Segment
Electronics-Related Products
Sales of semiconductor-related products increased over the previous consolidated ﬁscal year due primarily tosales of products for use in smartphones and tablets. In addition, both sales in volume terms and unit prices held
ﬁrm in all categories from cutting-edge products to middle- and low-end products. Moreover, the depreciation of
the yen also has a positive effect, and overall sales for the ﬁscal year expanded.
As for liquid crystal related products, demand for high-precision, high-resolution masks for small to medium sizes
was favorable, and demand for large masks for 4K TVs and other large-screen sizes held ﬁrm. As a result, sales inthis business expanded.
In the glass substrate for HDD use business, compared with the previous year, when shipments were weakbecause of production adjustments in the market, demand for the replacement of PCs related to the ending of
support for Window XP and ﬁrm demand for applications, such as external HDDs for game consoles, held ﬁrm,
resulting in increased sales over the previous year.

Imaging-Related Products
In the digital camera market, including compact digital cameras and interchangeable lens camera types, thenumber of units sold fell substantially because of the inroads into the market by smartphones and the slowdown in
the Chinese economy. Amid this environment, the Group focused on selling interchangeable lenses for the aftersales market and products for use in surveillance cameras. As a result, sales of imaging-related products as awhole increased.
As a consequence, sales of this segment (Information Technology) were ¥180,164 million, an increase of 13.1%
over the previous year. Segment proﬁt amounted to ¥57,303 million, representing an increase of 59.8% over theprevious ﬁscal year.

Copyright ©2015 HOYA GROUP

Life Care Segment
Health Care Related Products
Sales of eyeglass lenses posted a large increase from the previous consolidated ﬁscal year. This was due to anumber of factors, including the consolidation of the sales company for SEIKO eyeglass lenses at the end of theprevious ﬁscal year, an increase in sales in overseas markets and higher unit prices, and the positive effect of thedecline in the value of the yen. Sales of contact lenses decreased, despite the opening of new “Eyecity” specialty
stores and reinforced promotional campaigns at existing stores, because of the prolonged reactionary decline insales following the surge in demand at the end of the previous ﬁscal year prior to the increase in Japan’s
consumption tax on April 1.

Medical-Related Products
Sales of endoscopes decreased from the previous ﬁscal year. In the European region, this was because of the
reduction in government budgets in the principal countries of Europe and the deterioration of the politicalconditions in certain regions (the Middle East and Russia) where sales had been strong in the previous ﬁscal year.
In the North American market, shipments decreased year on year because of restraints on medical expenditures,more-intense competition, delays in introducing new products, and other factors. On the other hand, sales in the
Asia-Paciﬁc were favorable, especially in China, Japan, and other countries of the region. Overall, even though the
decline in the value of the yen had a positive effect, sales in this business were at about the same level as in theprevious year.
In the intraocular lens (IOL) business, HOYA conducted a voluntarily recall in February 2013 for certain products,
but began to resume sales step by step in overseas markets beginning in July 2013. In the Japanese market, we
conducted an autonomous immunity survey beginning in January 2014, and then resumed full-scale marketing inAugust 2014. As a result of gradual recovery in sales following the resumption of marketing, sales rose above theprevious ﬁscal year.
As a result, the Life Care segment reported sales of ¥306,653 million, an increase of 15.5% year on year. The
segment proﬁt before tax was ¥52,936 million, representing an increase of 6.5% year on year.

Copyright ©2015 HOYA GROUP

OtherThe Other business segment consists mainly of information system services offered to the HOYA Group andoutside customers as well as new business development. Revenues from the segment were ¥3,117 million, 13.8%
higher than in the previous year. Segment proﬁt amounted to ¥727 million, representing an increase of 20.8%.

Dividend Policy
HOYA’s basic capital policy is not only to maintain a sound ﬁnancial position to secure stable and sustainablecorporate growth but also maintain an optimal balance between building retained earnings for ﬁnancing future
growth and returning proﬁts to shareholders. In addition, HOYA’s management stance is to emphasize return on
capital and generate as much proﬁt as possible through the efficient use of the capital that shareholders haveinvested in the Company. However, going beyond this, HOYA practices SVA (Shareholder Value Added)
management and aims to raise return on invested capital as high above the cost of capital as possible and aim for
maximizing corporate value.
Regarding internal reserves, resources will be preferentially appropriated to investment in the Life Care business
ﬁeld, which we have positioned as a growth business. These resources are being used for market share expansion,
entry into untapped markets, and developing as well as acquiring new technologies. In addition to growth ofexisting businesses, HOYA will proactively pursue various possibilities, including mergers and acquisitions, tofurther enrich its business portfolio and expand business operations. In the Information Technology business ﬁeld,
which has been positioned as a steady earnings business, we will continue to make capital investments thatfurther reinforce the technological capabilities that become the source of competitiveness, and development
investments that will contribute to the development of next-generation technologies and new products.
In determining return to shareholders, HOYA’s bases for judgment are performance results and the level of retained
earnings, funding needs in the medium-to-long term, and the composition of capital from an overall perspective.
HOYA then actively distributes dividends to shareholders and conducts share buybacks.

Copyright ©2015 HOYA GROUPIn view of this policy, HOYA conducted a share buyback program totaling ¥30 billion (The buyback program wasapproved in May 2014, completed in August 2014, and the shares were cancelled in September 2014.). The interim
dividend was set at ¥30 per share and coupled with the end-of-year dividend, the annual dividend will be ¥75 pershare. The consolidated dividend payout ratio is 34.4%.

Financial Position
Total assets at the end of the ﬁscal year under review increased ¥29,449 million from the previous ﬁscal year-end,
to ¥733,732 million. Non-current assets decreased by ¥9,405 million, to ¥180,166 million. This decrease was due
to declines of ¥991 million in goodwill, ¥4,287 million in intangible assets, ¥2,025 million in long-term ﬁnancial
assets, and ¥1,321 million in ﬁxed assets due to depreciation and amortization.
Current assets increased ¥38,853 million, to ¥553,566 million. This was mainly due to an increase in cash and cash
equivalents by ¥17,726 million. Total equity rose ¥53,447 million, to ¥596,095 million. This increase was mainly due
to the rise in retained earnings of ¥30,920 million and an increase in accumulated other comprehensive
income/(loss) of ¥20,507 million. Equity attributable to owners of the parent company increased ¥53,487 million, to¥590,014 million.
Total liabilities decreased ¥23,998 million, to ¥137,637 million. The ratio of equity attributable to owners of theCompany’s total assets as of the end of the consolidated ﬁscal year under review was 80.4%, which was 4.2
percentage points higher than the 76.2% at the end of the previous ﬁscal year.

Copyright ©2015 HOYA GROUPCash Flow
Cash and cash equivalents at the end of ﬁscal 2015 increased ¥17,726 million, to ¥348,819 million. This increase
included ¥15,662 million due to foreign currency ﬂuctuations. Net cash generated from operating activities was¥115,380 million (an increase of ¥12,710 million in the prior ﬁscal year). Principal items increasing operating cash
ﬂows were proﬁt before tax of ¥118,249 million (an increase of ¥32,762 million year on year), depreciation andamortization of ¥34,852 million (an increase of ¥961 million year on year), and other factors. Principal items
reducing operating cash ﬂows were an increase in trade and other receivables of ¥736 million (an increase of¥3,118 billion year on year), a decrease in trade and other payables of ¥314 million (a decrease of ¥1,857 million
year on year), an increase in inventories of ¥701 million (an increase of ¥12,487 million year on year), and income
taxes paid of ¥27,354 million (an increase in cash outﬂow of ¥2,862 million year on year).
Net cash used in investing activities was ¥27,387 million (a year-on-year increase in cash outﬂow of ¥6,505 million).
While cash ﬂow was increased by ¥2,118 million in proceeds from sales of property, plant and equipment (anincrease of ¥1,168 million year on year) and other items, this inﬂow was offset by payments for acquisition ofproperty, plant and equipment of ¥18,385 million (an increase of ¥1,839 million year on year), payments forpurchase of a subsidiary of ¥281 million (a decrease of ¥6,109 million year on year), payments for loans to relatedcompanies of ¥8,500 million (an increase of ¥6,504 million year on year), and other items.
Net cash used in ﬁnancing activities was ¥85,929 million (a year-on-year increase in cash outﬂow of ¥58,135
million). Principal cash outﬂows were dividends paid of ¥32,103 million (an increase of ¥4,002 million year on year),payments for purchase of treasury shares of ¥30,035 million (an increase of ¥30,031 million year on year, payments
for redemption of bonds of ¥25,126 million (an increase of ¥24,892 million year on year).

Copyright ©2015 HOYA GROUP

Capital Expenditures/Depreciation and Amortization
Total capital expenditures of all operations of the HOYA Group amounted to ¥20,184 million, representing an
increase of ¥3,345 million over the previous ﬁscal year. In the consolidated ﬁscal year under review, investment in
the Information Technology business amounted to ¥6,953 million, which accounted for 34.4% of total capital
investment, and investment in the Life Care business was ¥13,117 million, 65.0% of the total. These investments
were covered by internally generated funds.
Capital expenditure was made in the consolidated ﬁscal year under review in the electronics-related productbusinesses of the Information Technology business to further enhance and differentiate technological capabilities
and to increase productivity. In the imaging-related products business, investments were made to conserve energy
and expand capacity for production of high-value-added materials.
Within the Life Care segment, in the eyeglass lens business, where HOYA is aiming to capture growth in the
expanding global market, investments were made to increase production capacity in volume production facilities in
Asia and improve productivity in HOYA’s processing plants located around the world through the relocation andclosure of certain production locations.
Depreciation and amortization (including impairment loss) for the ﬁscal year under review decreased 9.1%, to¥35,138 million. Both the Information Technology and Life Care segments spend about one-half each of the total
amount.

Copyright ©2015 HOYA GROUP