HOYA CORPORATION
Q3 Financial Results Briefing for the Fiscal Year Ending March 2023
January 31, 2023

Moderator: Today's attendees from our side are Eiichiro Ikeda, Director and Representative Executive Officer,
CEO; and Ryo Hirooka, Director and Representative Executive Officer, CFO.
After explaining the Q3 results and an overview of our main businesses, we will answer questions from theaudience. The meeting will end at 3:45 PM. For those of you participating from a PC, please see the documents
shared on the screen.
Mr. Hirooka, CFO, will now explain the Q3 results and the full year forecast.

Hirooka: First, these are the key takeaways. There are three points.
Firstly, in the previous earnings announcement, we did explain that we may be seeing a decline in the HDD
substrate sales, and it did decline. However, the blanks and the Life Care divisions performed well and there
were some FX tailwinds helping the overall sales to slightly increase.
Secondly, regarding the IT Business, the HDD substrate situation was very tough. The market was stagnant,and there was an industry adjustment, so we were working on cost reduction efforts. As a result, in the IT
Business, we did not have to lose profit margin that much. Three months ago, I said that we will not be lossmaking, but the HDD substrate as well as the whole IT Business was able to maintain profits at a certain level.

Thirdly, in our Board of Directors meeting, we have decided to conduct a share buyback program amounting
up to JPY40 billion.

Next, I would like to talk about the financial overview.
Revenue came in at JPY173.5 billion. That is plus 1% YoY. Helped by some Forex impact, it was a slight increase.
As for pretax profit, JPY38.5 billion, that is minus 26% YoY, and net profit, JPY30.5 billion, minus 25% YoY.
Operating profit was JPY49.3 billion, minus 8% YoY. Operating profit margin was at 28.4%.
Regarding the Forex translation impact, overseas subsidiary is consolidated, converted into yen. Excludingthat impact, minus 7%. So, on a yen-denominated basis, the numbers look bigger.
There was a big difference between the operating profit and pretax profit which I would like to elaborate.
In H1, pretax profit was larger than the operating profit, due to the Forex translation's positive impact.
However, now we are seeing a loss from the foreign Forex translation impact. The amount of Forex losses was
JPY12.3 billion.
I would like to explain the reason why there were Forex losses. This is opposite of what we had experienced
in H1: Roughly 70% of the foreign exchange losses were caused by the revaluation of cash and deposits. Almost
all of the losses were caused by dollar deposits. Simply put, the situation was that an entity that does not havedollar book currency with dollar deposits, and when they are revalued according to the year-end rate, Forex
losses are incurred. The remaining 20% is generated by dollar or euro accounts receivable from affiliate
transactions at manufacturing facilities.
In accounting terms, Forex gains and losses are incurred by revaluation, but in reality, we continue to holddollar deposits, and although a certain amount of sales and purchases of accounts receivable from affiliates
are constantly occurring and rotating, cash basically stays within the group, so there are no real losses or
expenses incurred. As you know, the dollar started to strengthen rapidly in about Q4 of last year and turned
weaker in Q3 this year. Nothing has changed in the assets we hold, only the rate has changed.

In my view, what assets you have is most important, and I believe that in the medium to long term, it is useful
to have a large number of dollar deposits. We believe that it is also a mistake to convert dollars into different
currencies in order to avoid exchange gains or losses. Also, depending on where you hold your dollars, there
is an impact on net income in the form of Forex gains or losses, or on comprehensive income below the net
income line, but I see it as essentially the same thing. For example, hedging against exchange rate fluctuations
or changing to a different currency incurs costs and should not be a priority. In addition, moving money within
the group may have its own costs, so we give priority to the general principle of moving money in accordancewith the company's capital needs.

Now I would like to explain the business results by segment.
As for the life care business, revenue came in at JPY120 billion. Compared to last year, it was a 14% increase
YoY. Pretax profit was JPY17.4 billion. That was minus 19% YoY. Operating profit was JPY25.5 billion, that wasplus 10%. Operating profit margin, plus 21.2%. In constant currency basis, revenue would have been plus 5%.
If I may repeat, operating profit and pretax profit, there are differences, and the difference mainly comes fromthe Forex loss. What we can say overall is that we are seeing good growth.
However, macroeconomics does not look very good, to be honest with you. And China's sales in the medicalrelated business, we saw a large decline compared to last year. There were these COVID restrictions. However,it was relaxed suddenly, and the hospitals were not able to support this sudden change in China's policy, so
we are not seeing a strong recovery yet.

Next, I would like to explain by product. The numbers you are seeing YoY is on a constant currency basis.
For endoscopes, compared to Q3 last year, it was minus 9%. Overall, the market was soft. The large negative
mainly comes from sales activity in China, and we were not able to recover the decline in China. As a result, it
was minus 9% YoY.
For intraocular lenses, again, sales in China compared to last year declined sharply. However, in othercountries, especially in Japan, we were able to grow sales steadily. On a constant currency basis, it was plus
7%. If China's influence had been flat, double-digit growth would have been possible, so the economy isgrowing solidly.
As for artificial bone, though the size of the business is not very big, we have seen a plus 12% growth.
Next, health care. Eyeglass lenses was plus 6% YoY. In China, eyeglass lenses have not been impacted largely.
MiYOSMART sales were strong. On the other hand, in December, sales in Europe’s major countries werestarting to slow down. That is a concern. Without that impact, we should have grown more, but the overallmacroeconomy is not good. So, from Q4 onward, we must carefully watch Europe.
Lastly, contact lenses. The COVID situation is recovering and compared to last year, sales of contact lenses
have grown 7%.

Next, I would like to move on to the information technology segment. Revenue was JPY52.3 billion, that is
minus 19% YoY. Pretax profit was JPY20.9 billion, minus 33%. Operating profit was JPY24.9 billion, minus 20%.
Operating profit margin was 47.4%. Again, the difference between the pretax profit and operating profit
comes from the Forex impact.
But as I mentioned at the outset, the HDD substrate business, we stopped the factory operation and reduce
costs more than we had initially expected. As a result, we were able to generate operating profit. On a YoY
basis, the absolute revenue and the absolute amount of profit may have declined. However, the businesses
have made good efforts so that the IT business managed to maintain its operating profit margin.

Now I would like to explain the IT revenue by product. This is on a constant currency basis.
Starting with Imaging, compared to last year, there was a decline of 23%. This is not a growth area for us, andit will be driven by macroeconomy, so this is a kind of business that would gradually decline. Of course, there
will be some ups and downs, but a gradual decline is expected from this business. For this quarter, theeconomic environment was not good, and we have seen a decline in the sales of interchangeable lenses. And
in this business, we have many Chinese customers. Likewise, because of COVID, our business was highly
impacted. However, we do have a structure where we are able to maintain profitability. Even though revenue
is declining, we have been able to maintain profitability. That is the current business status of Imaging.
Now moving on to mask and blanks. Compared to last year, there was an increase of 15%. In terms of LSI, for
Q3, there's been a significant increase, more than 15% increase YoY. However, as a bad news, customers
started to adjust inventories from January. At some point in time, we knew that it is going to happen for ourblanks, which did come in this quarter.
For now, for the next six months, we will see two upcoming quarters where we will see a decrease against theprevious year's performance. Though, it won't be as big as what we experienced with HDD substrates
compared to last year. With blanks business, there's going to be a decline of about 15% for Q4 and Q1 for the
next fiscal year. That is what we expect. But after that, instead of a sudden recovery, we believe that there's
going to be a gradual recovery.
As I said, the reason for that is that because of the bad macroeconomic environment, the customers requested
that they wanted to do some inventory adjustment. The mid- to long-term EUV growth strategy or growthstory will remain unchanged. It's not like there's competition. There hasn't been a major change in thecompetitive landscape either. It's a one-time thing. It's a tentative impact coming from the macroeconomic
environment.
Now regarding FPD, again, the overall market environment is not good but we have been able to continue tosell to the Chinese customers. So that part of the business remains strong.

Lastly, with the HDD substrates, as we mentioned in the previous presentation, we were expecting a declineof 80%, but we ended up with a decline of 67%, a sales reduction of two-thirds YoY, which means that we area bit better than what we had expected.
So where are we now? Just to share with you where we are in terms of the current situation, the customers'
inventory, the adjustment has made a progress. Starting from mid-December, the demand has been gradually
recovering. The customers have started to operate their factories and started to manufacture HDDs. I think
we have hit the bottom.

Regarding the balance sheet and cash flow, including shareholder return, CapEx and D&A -- everything is
explained on the slide.

Now the guidance for this fiscal year, let me just read out the full year guidance. Revenues, JPY712 billion,
pretax profit, JPY210 billion, net profit, JPY163 billion, which is the guidance for the full year. So let me explain
the contents.

Now, this shows the QoQ revenue variance. Please do note that the sizes of the arrows are not so precise; wejust wanted to show the movement of the key factors and how we came up with a number for Q4.
So, for HDD substrate, as I mentioned earlier, starting mid-December, we have hit the bottom. In the second
half of December, we have seen an increase in sales, and we are gradually starting to operate our factories.

And as for HDD substrates, compared to Q4 last year, a negative 25% is the kind of recovery we are expecting
as of today. The customers have already started their manufacturing, so that's the reason why we have that
outlook.
But beyond that, of course, the customers need to sell their products to hyperscalers. It is also the same for
HOYA and for the customers, we need to be carefully monitoring. It's not like the recovery is going to happen
quickly. There will be some ups and downs, and I believe that the recovery will be gradual.
Now, moving on to blanks. As I said, for the next six months, we will see a significant decline compared to lastyear due to customers' inventory adjustment, so we will see some decline. In terms of the amount comparedto the previous year, blanks, including optical (DUV), about a 15% decline is what we expect. Q4 and Q1 of
next fiscal year, we will see that level of decline, and there won't be a rapid recovery. Recovery will be gradual,
according to our expectations. We are still in the process of creating the plan for the next fiscal year, so we
don't have a lot of visibility yet. But as of today, we expect a gradual recovery to happen after Q1.
Moreover, there are negative impacts from COVID and Forex. In terms of currency, are assumption for dollar
is JPY125 and JPY125 for euro. So compared to Q3, we expect yen to appreciate compared to assumptions,which will have a negative impact. In terms of the business environment, we are struggling in China, and webelieve that the situation will continue into Q4, which is reflected in these numbers.
And since I was talking about the revenue, let me talk about the profit outlook as well. In terms of losses from
FX, for Q4, we have not included the FX impact because this will be related to the rate as of the end of March.
We don't want to speculate, so we are not expecting.
Regarding LSI’s revenue decline impact on profits, just to share the rough image with you, it will have impact
on the IT Business margins, which we expect to be above 40%. But Q3 profitability is not the kind of level we'll
be able to achieve, according to our forecast. Earlier, I talked about cost reduction for HDD substrates. To be
frank with you, we don't want you to expect a similar kind of thing with LSI. We will do cost reduction activities
with LSI, but there will be no drastic cost reduction activities with LSI because of the differences in cost
structure compared to HDD substrate. For HDD substrate, our expectation was for it to decline by 80%
whereas for expectation for LSI is a 15% decline. So we won't be stopping production in the factories, which
are extremely drastic actions. And we also want to fulfill the request of our customers.
In terms of the operating profit, which we have not disclosed the forecast, will be positive for the full year.
This is contrary to the pretax profit which will have negative impact from Forex.
Since foreign exchange gains of 5.8 billion yen were generated for the year last year, a difference of about 5.0
billion yen was generated here, leading to a decrease in pretax profit. That is all from me. Thank you.

Now let us move on. We would like to cover the topic of the new endoscope products. We have made anannouncement that our two new endoscope products, the new video processor INSPIRA and the newvideoscope i20c have received the CE mark in Europe. The new INSPIRA video processor is positioned in thehigh-end segment and has achieved significant advances, such as improved image enhancement functions
and 4K image processing. What is shown on the slide is a new product. As you can see, it is equipped with atouch panel, which enables intuitive operation and improved customizability.
One very important thing I would like to add is that it has a "bridge function", which enables connection withnot only new generation scopes, but also legacy scopes has been realized for the first time in the comparable
model in the high-end category. Even when a legacy scope is connected, INSPIRA's advanced image processing
capabilities will provide better image compared to legacy scopes connected to legacy processors. For medical
institutions that own conventional endoscope models, the INSPIRA video processor will enable them toupgrade their existing models to the latest image quality, making it an excellent product from the perspectiveof sustainability.
On the other hand, for the new i20c videoscope, not only the image quality but also ergonomics has been
updated. For example, the shape of the control unit has been proven to make it easier to grip and theangulation of the scope tip has been advanced. This is expected to contribute to improved operability duringendoscopic examinations and treatments. Sales will initially begin in Europe, with plans to gradually expand
to Asia and to the Americas.
That was a very brief explanation on the new endoscope products.

Question & Answer

Moderator: [M]: Now let us move on to Q&A. Mr. Shibano, please.
Shibano [Q]: My name is Shibano from the Citi group. I have a question regarding blanks. Just one point toconfirm. The blank sales, if I may assume, Q1, Q2, Q3, I think the sales of blanks were mostly flat. And is myunderstanding correct for Q3 as well and Q4? You explained about Q4 and the adjustment made in Q1. It's
not minus 15% compared to Q1 to Q3. I think it's one level lower. For last year's Q4, compared to last year's
Q4, it's minus 15%. Is my understanding correct? That's my first question.
Hirooka [A]: As for Q1, Q2, Q3, well, the level by and large remains the same. But Blanks overall did increase.
And to answer your second part, 15%, it's compared to the last corresponding quarter, so this quartercompared to 2021. And when you say Q1, then it's Q1 FY22 and FY23.
Shibano [Q]: So, QoQ, 20% or 25% decline. Is my calculation correct?
Hirooka[A]: Yes, on a QoQ basis the decline would be a bit larger.
Shibano [Q]: Thank you very much. And a follow-up question. The details of the adjustment, EUV and optical,
are you seeing adjustments both for EUV and optical? Or is it only for EUV? And as for EUV, were all the users
who were using EUV making inventory adjustments, or just some of them? Can you elaborate on the
background?
Ikeda [A]: As for inventory adjustment, optical, EUV, both, I would say, but more adjustments have been madein EUV. And within EUV, whether there are differences between customers? Yes, there are. Some customers
made large adjustments; some customers made small adjustments. It's not that the level of adjustments are
all even. Of course, I am not able to disclose the details for individual customers, but I just would like to saythat the inventory adjustment levels were different among customers.
Shibano [Q]: Thank you very much.
Moderator [M]: Now I would like to ask Katsura-san.
Katsura [Q]: Thank you very much. My name is Katsura from SMBC Nikko. This is a kind of follow-up to theprevious question. On next year's investment and depreciation, can you share your thoughts on that? Q3,
there's been increase in CapEx. I would like to hear you explain your idea on the content of the investment.
You talked about it being tentative, which means that the mid-term plan figures will remain unchanged. In the
short term, there will be the increased burden of depreciation. Can you explain? That's my first question.
Hirooka [A]: Let me explain the current investment, though I cannot explain in detail for each businesssegment. One of the reasons for that is in FPD, as we try to expand in the Chinese market, there has beensome investments. There's been some cash-out related to facilities and equipment, and LSI's capacity has
been increased based on the decision that was made before, which is included in the invested amount. Next
fiscal year’s, CapEx plans haven't been decided yet. But in LSI, our thoughts on CapEx have not changed frommid- to long term. Of course, there may be differences in terms of timing, but the volume will go downtentatively, but we expect the volume to recover after that. But a specific plan has not been made for next
fiscal year yet.

Katsura [Q]: Thank you very much. Now my second question is related to EUV, if you can share with me yourthoughts, Ikeda-san. The customers' development activities, have there been any changes compared to theactivity three months ago? The adjustment is limited to inventory adjustment, according to the explanation. I
would like you to explain what changes the customers are experiencing.
Ikeda [A]: In terms of the development activity of the customers, 2-nanometer will be what they're working
on as of today. The customers' development activities are still active, and we are working on samples with all
our customers, but the inventory adjustment is happening. But separate from that, activities related to R&D
are still ongoing with the customers. It's not like some of the customers are stopping their R&D activities. That
is not the kind of phenomena that we are seeing as of today. Thank you.
Katsura [Q]: Thank you very much.
Moderator [M]: Mr. Yoshida, please.
Yoshida [Q]: My name is Yoshida of CLSA. I have a question regarding EUV. Two-nanometer development
activity is underway. So currently, the adjustment is made for the 3-nano mass production blanks. Is myunderstanding, correct? And as for 2-nano, phase shift mask adoption, I think, is being considered. Can you
give me your expectations on that?
Ikeda [A]: The development and mass production masks, well, it's a set. It's not that this mask is for this size
nanometer. We don't have a clear understanding when we make shipment. So which inventory is being
reduced is difficult to identify and categorize. In foundry companies, multiple nodes are used in common,
whether 3-nano is being decreased or was it 7-nano or 5-nano, it's very difficult to distinguish. However, if I
may repeat, as for 2-nano, the customers, we are working on sample work together with the customers forthe 2-nano. And although there are declines in demand for mass production, we would like to accelerate the
new material layer development activity so that we can be ahead of others.
Yoshida [Q]: Thank you very much. Follow-up question, contact lenses. So, PB product has been launched andyou explained that the sales are as strong. PB products and in-house produced products, what is thecomposition, the breakdown? What is the target if you have one? And I believe the unit price is going to comedown. However, the margin is going to increase. But if PB product sales are going to increase, what kind of
impact would that have on the revenue?
Hirooka [A]: We do not disclose that kind of information, so I cannot give you a direct answer to your question.
However, in terms of in-house products, we launched in December. Among the customers that come to ourstores, we make recommendations of our PB products and ask them, and there is a certain number ofcustomers who are purchasing in-house produced products. But in terms of sales breakdown, the ratio is still
very small.
In terms of profitability, of course, we plan to achieve a certain level of margin. But it's not like there's going
to be a significant improvement in profitability because of PB products. I would say that we want to make theprices more reasonable while maintaining the margin, or a bit of an increase with the margin is what we would
like to achieve. In terms of PB contact lenses, we would like to expand ourselves in Japan. Moreover, we arethinking of different things, and we are hoping that we'll be able to develop new business opportunities as amanufacturer. It's not like there's going to be a short-term significant impact on our revenue. Thank you verymuch.
Yoshida [Q]: Thank you very much.
Moderator [M]: Mr. Yoshikawa, please.

Yoshikawa [Q]: I’m Yoshikawa of Morgan Stanley. My question is about hard disks. Among hard disk makers,
in April to June, you said that you are going to ramp up HAMR. In your glass disks, what kind of implications
are there? Are glass substrates going to be reduced? I think, I assume that the quantity will decrease. But I
would like to ask the implications on your company. And my second question is again about blanks. Amongfoundries, 3-nano is more active compared to 5-nano, I think that's what you said. So, the demand for thisactive 3-nano tape out, is that really occurring? Or is it going to happen? Those are the two questions that I
have.
Ikeda [A]: As for HDD, your first question, our main customer is going to release the HAMR drive. And theimplication on us, the number of drives that our customer is going to ship, some portion would be HAMR, andthe glass substrate that the customer will use remains 100% HOYA’s. That remains the same. So, if you lookat that phenomenon alone, there will be no changes. On the other hand, from a bigger picture, drive capacity
will have to be increased and to a largely increased capacity. As for HAMR, 30 terabyte is the number
announced or even more; 16 to 18 terabytes are achieved today. And I think other companies are aiming at
releasing 20. So, to release 30 tera, which is 1.5x of 20, that is a large impact. So, if you use HAMR, it's 30
terabytes. And if that is the case, other customers perhaps would want to use HAMR, and that direction will
be accelerated. If so, glass substrates will be required. That's a scenario that we envision. There is not much
impact In the short term, but from a mid-term to long-term perspective, there will be a positive impact on our
glass substrates.
And to answer your second question on 3-nano. If I may repeat, which nano demand is going to increase?
Rather than thinking that way, well, to be honest with you, it's not that visible for us. And our blanks -- rather
than procuring blanks based on actual demand, customers or companies have been rather increasing theirinventory. They have bought more than they required. So, the actual demand and shipment on our side, there
was a gap between the two. So, it's a bit difficult to see what kind of changes there are in the actual demand.
And I would like to refrain from making any comments.
Yoshikawa [Q]: About HAMR's mid- to long-term potential, there is an expectation for that. But by switching
to HAMR, is there going to be changes to glass specifications or specifications related to durability against theheat?
Ikeda [A]: There's a different glass substrate for HAMR. So the product is going to be different. However, themanufacturing line is the same. It's just that we'll be producing two types of products. It's not like we needadditional investment. But as HOYA, we will be adding value to the product.
Yoshikawa [M]: Thank you very much.
Moderator [M]: Nakamura-san, please.
Nakamura [Q]: My name is Nakamura from Goldman Sachs. I have two questions for you. My first question isrelated to EUV. Earlier, you said that there's going to be inventory adjustment for the next six months. The
customers' inquiry, do you believe that it's going to be weak? But do you have visibility for the future after six
months? And in response to the current changes in the market, the new factory in Singapore, the plan was to
do ramping up in January through March. Is that going to be changed?
Ikeda [A]: For two quarters, there's going to be inventory adjustment and the volume is going to decline. Thisis almost confirmed. From Q3, is the volume going to increase? We don't have a lot of visibility on that. So, fornext two quarters, it is almost confirmed that business, the volume is going to decline.
And the second question, our manufacturing line in Singapore. There may be some delays and it may comeahead of schedule, depending on the implementation. However, since the volume is low, we may spend moretime on the development rather than working on the line. As Hirooka-san mentioned earlier, just like the HDD
substrates, we won't be closing the factory and stop incurring costs. And that is one of the reasons.
Nakamura [Q]: Okay. Understood. Thank you very much. My next question is about Life Care, bothinvestments from Q4 for the Life Care business. You talked about the eyeglass lenses. You said that thedemand in Europe was slow from December. So how is the situation in this quarter from January to March?
And also, for the Life Care business, what are your expectations for this quarter?
Ikeda [A]: For January to March, especially in China, the zero-COVID policy was reversed, and the hospitals
are struggling. Because of that, Life Care-related product sales forecast in China is still very slow. We don't see
a recovery, which has a significant impact on the business performance, which is where we are in terms of
China. And what are the numbers going to look like? I would like to hand over the question to Hirooka-san
because he talked about the full year forecast.
Hirooka [A]: FX impact is something that is hard to foresee, but fundamentals, probably the same level as Q3
YoY, I mean. So, since this is Life Care business, what I can say is that overall, it's a defensive business and it
will continue to grow. But what will be impacted is eyeglass lenses. It's not the volume, it's rather the unit
price that will be impacted, the end users, the consumers. We'll look for lower-priced products. However, thatis not the kind of thing that would happen to medical devices. So maybe a little bit of a loss in momentum iswhat we are foreseeing for Q4.
Nakamura [Q]: Understood. Thank you very much.
Moderator [M]: Thank you. Damian-san, please.
Thong [Q]: I am Damian. Just one question. As for eyeglass lenses, the demand from the hospitals perhaps
will remain sluggish. However, eyeglass lenses in China, what is the situation in China recently for
MiYOSMART? What are your plans for Q4? Or how do you see the movements in Q4? If you can comment on
those points.
Hirooka [A]: As for eyeglass lenses, there's growth in China. Because it's not only hospitals. Well, there is some
impact. And as for MiYOSMART's growth rate, compared to the previous year, if you look at the quarter, weare seeing a growth of 30% to 40%. And in Q4, we are also expecting a growth of 30% to 40% compared tothe previous year.
Thong [Q]: So, what is your outlook for the next year as China is entering the post-COVID era? What kind of
pickup do you expect next year?
Ikeda [A]: Well, a sluggish record has been seen in Q3, Q4 in China, so we do expect a rebound. I don't knowwhether things will turn around from Q1, but we do expect some rebound and I think things will pick up.
Thank you very much.
Thong [Q]: Can I ask a follow-up question? Do you think that the situation in Europe will continue into Q4 as
well?
Ikeda [A]: Yes. The impact of the macro environment in Q4 and Q1, well, macro environment, I do believethat there will be a continuous impact on Europe as well.
Thong [Q]: Which region is the weakest?
Hirooka [A]: Germany and France, in major chains. It seems that compared to October and December,
December was weaker. Maybe the number of businesses are being impacted.

Thong [Q]: Was it only December that was weak?
Hirooka [A]: Well, we are watching the situation in Q1, what will happen in Q4 as well. Well, from a Q4
perspective, yes. But if you look at things over a longer span, the quantity of glasses – well, the quantity orvolume of eyeglass lenses will continue to grow in any economic environment. However, it's a matter ofwhether the momentum is strong or not so strong. In any case, glasses will grow in quantity.
We are facing some difficulties in the United States and so we would like to improve and solve those problems.
And if we can gain business from major chains, we do believe that we'll be able to expect more growth in ourannual plan. Perhaps that will be incorporated into our annual plan. However, we would like to make somevalidations over the next several months. But we do believe that there will be a large growth in eyeglasses
going forward.
Moderator [M]: This is going to be the last question. Nakanomyo-san, please.
Nakanomyo [Q]: Let me make my question short. My first question is related to EUV. When looking at Q3,
excuse me, how much have you grown?
Ikeda [A]: 15% for blanks for semiconductors.
Nakanomyo [Q]: But for EUV, how much growth have you seen?
Ikeda [A]: Compared to last year in Q3?
Nakanomyo [Q]: Yes.
Ikeda [A]: Growth was close to 40%. This month (January), the momentum changed. It's not the end-user
market but due to inventory adjustment of the customers. Because the demand of the customers has
declined, they have wanted to reduce their inventory level.
Nakanomyo [Q]: One more question. Did you say HDD is expected to be negative 15%, both for 2.5-inch and
3.5-inch?.
Hirooka [A]: We expect minus 25% combined together.
Nakanomyo [Q]: I'm sure there is a concern that there's going to be a further decline in demand related toservers. But how do you see the end-user market? How is the end-user market going to develop going
forward?
Ikeda [A]: A certain volume has come back already but beyond that, we don’t know whether it will recover ina rapid pace, to be honest with you. We are in the process of creating the plan for next fiscal year. And in thatprocess, we'll be collecting information from our customers to come up with something more accurate. But
as of today, it's difficult for us to make a forecast beyond those months.
Moderator [M]: Thank you very much. It is now time to close this session. With this, I would like to conclude
today's financial results briefing session. Thank you very much for joining us despite your busy schedules.
[END]