FY19Q2
F i n a n c i a l
R e s u l t s
October 29, 2019@Station Conference Tokyo

7741.T[ADR:HOCPY

H O YAUS]C O R P O R AT I O N[With Memo]
Please be aware that this memo isposted for reference and is not averbatim record of all statements
made at the meeting.
© 2019 HOYA CORPORATION All Rights Reserved

11. Financial Results [Ryo Hirooka, CFO]
2. IT Business Overview
3. Life Care Business Overview
4. Summary
5. Q&A© 2019 HOYA CORPORATION All Rights Reserved22Financial Overview(¥bn)

Q2 FY18

Q2 FY19

YoY

YoY(%)

Revenue

142.0

154.1

+12.1

+9%

Pretax Profit

38.4

44.2

+5.8

+15%

Net Profit

31.2

35.0

+3.8

+12%

cf. Profit fromordinary operating
activities*

38.2

45.2

+7.0

+18%

*Herein after “Operating Profit”[Internal Note]
Sales slightly lower than market expectations.

Record high sales and profits, despite the negative impactof foreign exchange.
© 2019 HOYA CORPORATION All Rights Reserved

3➢Revenue amounted to ¥154.1 billion, up ¥12.1 billion (+9%) year on year
➢Quarterly profit before tax was ¥44.2 billion, up ¥5.8 billion (+15%)➢Profit for the quarter amounted ¥35.0 billion, up ¥3.8 billion (+12%)3

Constant Currency Basis (CCB)
Previous
Rate (A)Current
Rate (B)FX Impact

Revenue

159.9

154.1

-5.7

+17.8 +13%

PretaxProfit

45.0

44.2

-0.8

+6.6 +17%

Net Profit

35.7

35.0

-0.7

+4.5 +14%

Average Rates(A)Q2 FY18

(B)Q2 FY19

Variance

US$
EURO
BAHT

¥111.88¥130.54¥3.40¥107.67¥118.95
¥3.51

+3.8%
+8.9%
-3.2%

(¥bn)

© 2019 HOYA CORPORATION All Rights Reserved

YoY

YoY(%)

4➢A higher yen valuation impacted results for the quarter➢Assuming exchange rates level with the same period in the prior year, real sales growthwould have been ¥17.8 billion (+13%)➢The impact of foreign currency exchange on quarterly profit before tax was -¥800 million;
in real terms growth was ¥6.6 billion (+17%)4Notes RE: Special Items
Comprehensive Income Statement
Q2 FY18(¥bn)

IncomeExpenses
D&A

Pretax Profit

Q2 FY19

YoY

143.8
105.4

155.3
111.1

+11.5
+5.7

6.3

8.4

+2.1

38.4

44.2

+5.8

Depreciation and amortization increased due to theadoption of a new lease accounting policy.

© 2019 HOYA CORPORATION All Rights Reserved

5➢For the most part, no special factors affected results for the period➢The Japanese consumption tax increase resulted in a temporary increase in sales, as we
will address later

5Life Care Earnings
Q2 FY18

Q2 FY19

YoY

YoY(%)

Revenue*

91.9

100.4

+8.5

+9%

Pretax Profit

17.0

20.6

+3.7

+22%

cf.Operating Profit

18.7

21.7

+3.0

+16%

(¥bn)

cf.OP Margin

20.3%

21.6% +1.3pt*External revenue© 2019 HOYA CORPORATION All Rights Reserved

6➢Life Care segment sales amounted to ¥100.4 billion, an increase of ¥8.5 billion year on year
➢Segment profit (profit before tax) rose ¥3.7 billion, reaching ¥20.6 billion

6Life Care Earnings (CCB)(¥bn)

Previous
Rate

Current
Rate

FX
ImpactRevenue*

104.7 100.4-4.3 +12.8 +14%

Pretax Profit

21.0

20.6

-0.3

+4.0 +24%

cf.Operating Profit

22.0

21.7

-0.3

+3.3 +18%

YoY

YoY(%)*External revenue© 2019 HOYA CORPORATION All Rights Reserved

7➢Foreign currency translation had a -¥4.3 billion impact on Life Care segment results; real
sales growth amounted to ¥12.8 billion (+14%)➢Real segment profit (profit before tax) growth amounted to ¥4.0 billion after excluding theimpact of foreign currency translation

7

IT Earnings
Q2 FY18

Q2 FY19

YoY

YoY(%)

Revenue*

49.0

52.4

+3.5

+7%

Pretax profit

21.7

24.3

+2.7

+12%

cf.Operating Profit

20.9

24.3

+3.3

+16%

42.7%

46.2%

+3.5pt(¥bn)

cf.OP Margin*External revenue© 2019 HOYA CORPORATION All Rights Reserved

8➢Information Technology segment sales for the quarter amounted to ¥52.4 billion, an
increase of ¥3.5 billion year on year
➢Segment profit (profit before tax) rose ¥2.7 billion to ¥24.3 billion

8

IT Earnings (CCB)
Previous
Rate

Current
Rate

FX
ImpactRevenue*

53.8

52.4

-1.4

+4.8 +10%

Pretax profit

24.8

24.3

-0.5

+3.1 +14%

cf.Operating Profit

24.7

24.3

-0.5

+3.8 +18%

(¥bn)

YoY

YoY(%)*External revenue© 2019 HOYA CORPORATION All Rights Reserved

9➢The impact of foreign currency translation on Information Technology segment sales was a-¥1.4 billion; in real terms growth was ¥4.8 billion➢Real segment profit (profit before tax) growth amounted to ¥3.1 billion after excluding theimpact of foreign currency translation

9

Earnings by Sub-Segment
Healthcare Revenue
Eyeglass Lenses / Contact Lenses(¥bn)

Q2 FY18

Q2 FY19

YoY

YoY(%)

70.6

76.1

+5.4

+8%

Revenue*Constant Currency Basis(¥bn)

Previous Rate

Current Rate

YoY

YoY(%)

79.1

76.1

+8.4

+12%

Revenue**External revenue© 2019 HOYA CORPORATION All Rights Reserved

10➢Health care related products (eyeglass lenses, contact lenses) sales were ¥76.1 billion, up¥5.4 billion (+8%) year on year
➢Real sales growth amounted to ¥8.4 billion (+12%) after eliminating foreign currency
impact➢Eyeglass lens sales rose 4% after excluding the impact of foreign currency translation.
Sales were strong in China and Europe. Demand in Japan was significant prior to the increasein consumption taxes➢Contact lens sales rose 30% due to higher-than-expected demand (prior to the increase in
consumption taxes) in September. Eliminating this factor, sales rose about 8%. In essence,
second-half sales occurred during the first half
➢For reference, we have provided sales growth by region on P.10 of the supplementarymaterials of our quarterly financial statements. The impact of the Japanese consumption tax
increase on our growth rate in Japan was 14% (2.6% in Q1), as shown10

Earnings by Sub-Segment
Medical Revenue
Endoscopes / IOLs(¥bn)

Q2 FY18

Q2 FY19

YoY

YoY(%)

21.3

24.4

+3.1

+15%

Revenue*Constant Currency Basis(¥bn)

Previous Rate

Current Rate

YoY

YoY(%)

25.6

24.4

+4.4

+21%

Revenue**External revenue© 2019 HOYA CORPORATION All Rights Reserved

11➢Medical-related products (endoscopes, intraocular lenses, etc.) sales were ¥24.4 billion, a¥3.1 billion (+15%) increase year on year
➢Real growth excluding foreign currency translation impact was ¥4.4 billion (+21%)➢ Intraocular lens sales rose 17% like-for-like after eliminating the impact of businessacquisitions; endoscope sales rose a strong 17%, mainly due to growth in Europe and Asia

11

Earnings by Sub-Segment
Electronics
Masks & Blanks / HDD Substrates(¥bn)

Q2 FY18

Q2 FY19

YoY

YoY(%)

38.1

43.0

+4.9

+13%

Revenue*Constant Currency Basis(¥bn)

Previous Rate

Current Rate

YoY

YoY(%)

44.1

43.0

+6.0

+16%

Revenue**External revenue© 2019 HOYA CORPORATION All Rights Reserved

12➢Electronics related product (glass substrates for semiconductors, LCD-related products, andhard disk drives) sales amounted to ¥43.0 billion up ¥4.9 billion (+13%) year on year
➢Revenues amounted to ¥6.0 billion (+16%) in real terms after excluding the impact offoreign currency translation➢Sales of EUV blanks continued to drive performance➢While sales of 2.5-inch products declined, demand for 3.5-inch products used in data
centers rose, resulting in 9% growth of substrates for HDDs

12

Earnings by Sub-Segment
Imaging
Optical Lenses, Etc.

(¥bn)

Q2 FY18

Q2 FY19

YoY

YoY(%)

10.9

9.4

-1.5

-14%

Revenue*Constant Currency Basis(¥bn)

Previous Rate

Current
Rate

YoY

YoY(%)

9.7

9.4

-1.2

-11%

Revenue**External revenue© 2019 HOYA CORPORATION All Rights Reserved

13➢Imaging related products sales amounted to ¥9.4 billion, down ¥1.5 billion (-14%) year on
year➢Revenues amounted to ¥1.2 billion (-11%) in real terms after excluding the impact offoreign currency translation➢Revenue was down 5% year on year on a like-for-like basis after excluding terminatedbusinesses➢While the camera market continued to decrease, the overall impact on performance waslimited due to the comparative small percentage of sales represented by this business13

Balance Sheet(¥bn)

Q1 FY19Q2 FY19

QoQ

Non-current Assets

276.4

279.8

+3.4

Current Assets
Capital

486.8
611.3

516.9
637.0

+30.1
+25.6

Non-current Liabilities

33.4

31.4

-2.0

Current Liabilities
Total

118.5
763.2

128.4
796.8

+9.9
+33.5

Cash and cash equivalents increased ¥24.6 bn resulting inincreased current assets.
© 2019 HOYA CORPORATION All Rights Reserved

14➢The Company’s balance sheets did not show any major changes➢Cash rose ¥24.6 billion, resulting in a larger balance for current assets

14

Cash Flow
Q2 FY18(¥bn)

Operating CF

Q2 FY19

YoY

40.1

44.7

+4.6

6.3

8.4

+2.1

Investing CF

-19.6

-11.1

+8.5

Financing CF

D&A

0.3

-7.5

-7.8

Payments for lease liabilities

-

-1.8

-1.8

Cash & Cash Equivalents
at the end of the term

252.3

298.4

+46.1

Due to applying a new lease accounting policy, D&A(Operating CF) increased while payments for lease liabilities(Financing CF) decreased; Net neutral.
© 2019 HOYA CORPORATION All Rights Reserved

15➢Share buybacks were lower than projected, resulting in higher cash balances on our cash
flows statement

15

Share Buyback
The HOYA board resolved to conduct an additional sharebuyback in consideration of the repurchase status of thefirst buyback (ending in October) and other factors such as
net cash position.
Share Buyback #1
Maximum Amount: ¥60 bn
Period: May 8, 2019 to October 28, 2019
Actual Amount Repurchased: ¥24.1 bn (to be canceled)
Share Buyback #2
Maximum Amount: ¥50 bn
Period: October 30, 2019 to April 23, 2020
© 2019 HOYA CORPORATION All Rights Reserved

16➢ We repurchased ¥24.1 billion (3.09 million shares) in share buybacks in May of this year,
compared to the upper limit of ¥60.0 billion established beforehand. We canceled all shares
repurchased➢Purchases were conducted under a discretionary contract with a securities firm. Shareprices rose higher than expected, which resulted in our purchases being limited to 40% of ourupper limit➢As we announced in a press release today, our board of directors resolved to purchase up
to ¥50 billion in share buybacks➢As with our prior share buyback, we will set a framework together with a securities firm.
Accordingly, we will not purchase shares automatically without due consideration of shareprices➢As long as we have an upper limit of purchasing price, the amount we can repurchase will
depend on share price. We intend to establish conditions that would not end significantly
lower than plan16

1. Financial Results
2. IT Business Overview [Eiichiro Ikeda, COO/CTO]
3. Life Care Business Overview
4. Summary
5. Q&A© 2019 HOYA CORPORATION All Rights Reserved

1717

IT Snapshot
YoY Sales Growth (Like-for-Like)+9%

HDD Substrates+23%

Masks & Blanks(LSI/FPD)-5%

Imaging+11%© 2019 HOYA CORPORATION All Rights Reserved

18➢Our IT Business recorded revenue growth of 11% when including the impact of foreign
currency translation and discontinued products (lens unit)➢Profit ratio was 46.2%, up 3.5 points from the previous quarter➢HDD Substrates sales were up 9%, Masks & Blanks sales rose 23%, and Imaging sales fell
5%18Overview by ProductThis Quarter
7nm DUV sales continued to be strong. EUV also
maintained momentum, growing 90 plus percent YoY.

Going Forward
LSI Blanks

We expect continued growth in EUV blanks, backed byincreased CAPEX at chip makers and scanner installations.

This Quarter
FPD Masks experienced growth through captured
demand in the Chinese and Korean OLED market.

Going Forward

FPD/LSI Masks

Expand business in China as further growth of the market
is expected.

© 2019 HOYA CORPORATION All Rights Reserved

19[Blanks for Semiconductors]➢Sales of high-end optical (DUV) rose 25% year on year; sales for EUV rose in excess of
90%➢The industry has a shared understanding that mass production for 7nm EUV has begun➢Plans call for between 25 and 30 exposure devices this year in relation to which we expect
growth in EUV related sales➢In connection with stronger Japanese-Korean export controls, we saw a movement among
Korean customers to build up inventories in July and August. In the future, we expect to see
a trend in inventory drawdowns over the short term
[FPD/LSI Masks]➢While we saw negative growth in Japan and Taiwan, 80% growth in China resulted in
growth of between 3% and 4%➢In China, we were successful in our concentrated sales activities for G6 and G8 OLED masks➢China represents more than 40% of sales. In the future as well, we hope to capture highresolution OLED mask demand in this market

19Overview by ProductThis Quarter

HDD
Substrates
HDD Substrates

Overall sales swung to growth, driven by an upward trend
in data center demand. 3.5” products now account for
37% of total sales.
Going Forward
Continue to grow 3.5” glass disc revenue by replacing
existing drives in data centers.

This Quarter

Imaging
Imaging

Due to market contraction, our imaging-related sales
continued to decline.

Going Forward
Continue to develop new applications and channels.

© 2019 HOYA CORPORATION All Rights Reserved

20[Substrates for Hard Disk Drives]➢While, 2.5-inch sales have continued to decline, sales of 3.5-inch products for data centers
have risen nearly 2-fold, driving 9% overall growth in line with our predicted scenario➢New game consoles will contain SSDs; accordingly, we expect to see ongoing decreases inexcess of 20% for 2.5-inch products➢We have seen recent movement in data center investment. In addition, we expect to see
stable growth in the market overall, as the scale is still small considering the size of the data
center industry and the fact that growth will stem from replacements of existing aluminum
substrates➢Further, our customers have introduced 16TB drives ahead of their competition (shipping tobegin during the last half of this year), which could lead to market share growth for ourcompany➢We have provided samples to the remaining two companies as well for consideration ofglass substrates, and we are working together on joint development[Imaging-Related Products]➢The decrease in sales of products for SLRs was larger than expected➢Performance in surveillance cameras and in-vehicle cameras compensated, limited thedecrease to 5%➢The Company must develop new applications for products in this segment201. Financial Results
2. IT Business Overview[Hiroshi Suzuki, CEO]
3. Life Care Business Overview
4. Summary
5. Q&A© 2019 HOYA CORPORATION All Rights Reserved21

21Life Care Snapshot
YoY Sales Growth (Like-for-Like)

+17%
+4%

+30%

Endoscopes*Includes tax hike impact

Eyeglass Lenses

Contact Lenses

+0%

+17%

Other

IOLs

+11%
© 2019 HOYA CORPORATION All Rights Reserved

22➢Sales of eyeglass lenses increased +4%, sales of contact lenses increased +30%, sales ofendoscopes rose +17%, and sales of intraocular lenses rose +17%22

Overview by ProductThis Quarter
Global revenue grew, driven by performance in Europe
and Asia.

Going Forward

Eyeglass Lenses

Second factory in Vietnam to go online on November.
Continue to develop new accounts.

This Quarter
Sales grew significantly, driven by last-minute demandahead of Japan’s consumption tax hike.
No. of stores at quarter-end: 315 (including acquisitions)

Going Forward
Contact Lenses

Expecting a reactionary decline related to consumption tax
increase in Japan.
Accelerate new store roll-outs in H2.

© 2019 HOYA CORPORATION All Rights Reserved

23[Eyeglass Lenses]➢Performance was strong in Europe and Asia; however, internal factors in Brazil contributed
to weak performance in the Americas➢Our competition has reached an agreement for the acquisition of a leading chain in Europe,
which will have a negative impact on our supply to the chain in question Over the next year
or so, our growth rates may slow as we work to compensate for this negative impact throughthe development of new customers. However, we will aim for greater profitability through achange in customer mix[Contact Lenses]➢Demand ahead of the consumption tax increase in Japan resulted in significant sales growthof 30%. This demand accounted for approximately ¥4.0 billion.
➢In essence, this demand represented up-front sales, and we expect to see slower growth insales during the second half
➢On the other hand, we will continue to open new stores which should result in continued
growth in real terms

23Overview by ProductThis Quarter
Achieved double-digit growth, mainly due to recovery in
the Chinese market.

Going Forward
IOLs

Working on synergy strategies on acquired companies.
We will launch new products going forward.

This Quarter
Operations in Europe (where we have significant
exposure) and Asia drove overall sales. New productlaunches were the key drivers.

Going Forward
Endoscopes

Launch new products going forward.

© 2019 HOYA CORPORATION All Rights Reserved

24[Intraocular Lenses]➢We saw double-digit growth in sales as excess inventories were drawn down among ourChinese dealers➢Sales growth was in the double digits in both Japan and Europe➢Our two major competitors have solidified their organizations, ready for serious
engagement with medical products. Accordingly, we expect the competitive environment tobecome more intense[Endoscopes]➢Sales in Russia were strong, albeit due to temporary factors. We have seen a trend of large
purchases in Russia every few years➢Performance was strong in Korea and China, as well24

1. Financial Results
2. IT Business Overview
3. Life Care Business Overview
4. Summary [Hiroshi Suzuki, CEO]
5. Q&A© 2019 HOYA CORPORATION All Rights Reserved

25[Topics Identified During Three-Month Review]➢Blanks for Semiconductors:
Sales rose as the number of critical layers for optical related to 7nm cutting-edge products
grew at a greater rate than expected . Our analysis in connection with our competition has
shown that we have captured a high share for end nodes and that performance has grown
due to an increase in the number of layers. We expect this situation in cutting-edge optical tocontinue for some time
➢HDD Substrates:
Sales of 2.5-inch products were lower than expected due to factors including the impact ofgame consoles➢Summary:
Inventory buildup among Korean customers due to concerns of stronger export controls,demand ahead of the Japanese consumption tax increase, and strong performance in Russia
for endoscopes represented temporary positive factors in our performance for the quarter
Note that we do not expect Q3 to continue the same momentum we saw in Q2. This is not to
say that we expect to see the bottom dropping out of performance251. Financial Results
2. IT Business Overview
3. Life Care Business Overview
4. Summary
5. Q&A© 2019 HOYA CORPORATION All Rights Reserved

26

26

Q&A -1
Q[HDD Glass Substrates]
There seems to have been special demand for HDD in China. What has been theimpact on HOYA?

A

Our company has not seen any impact. On a different note, we have seen an
increase in sales composition for 3.5-inch products to major cloud vendors, who
are the end customer for these products. Due to the nature of this business,higher rates of inventory with respect to 3.5-inch products in comparison to 2.5inch products must be carried compared to actual demand for our company andfor HDD manufacturers. In particular, HDD manufacturers tend to build up
inventory temporarily leading up to new product launches. Looking over a shortperiod, this may appear to be special demand.
Further, the approach to investment among major cloud vendors varies company
to company. Accordingly, we must look at each company individually.

Q[Mask Blanks for Semiconductor]
What are your future expectations for EUV blank unit prices?

A

We hope to produce an even higher-quality product with less defects, raising our
prices by improving specifications on our own. We also believe that we are
creating a development environment for next-generation specs ahead of ourcompetition.

© 2019 HOYA CORPORATION All Rights Reserved

27

27

Q&A -2Q[Mask Blanks for Semiconductor]
Although demand is strong, will your increase in production capacity happen
quickly enough in response? Also, what will the impact of production capacity
investments be on profits?

A

We are currently building a new line for EUV products at our Singapore plant. We
intend to put the line into production as scheduled in Q1, fiscal 2020. We expect
capacity to double what we currently have.
Although profit ratios will decline due to higher depreciation and amortization, we
hope to keep profits above prior year in the first year after launch.

Q[HDD Glass Substrates]
Have you made changes plans for response to 3.5-inch demand?

A

Of our two plants in Vietnam, one has nearly completed the conversion to 3.5-inch
products. We will continue to transition from 2.5-inch to 3.5-inch. Progress toward
the launch of our new plant in Laos is going according to plan (see the last page ofthis presentation), allowing us to begin production in Q1 of fiscal 2020. If wedevelop more new customers, we may have to build more new plants.
Further, 3.5-inch products require twice the space of 2.5-inch products.
Accordingly, we must increase capacity in response to this lower throughput.
Prices for 3.5-inch products are not twice that of 2.5-inch products. Therefore, wewant to increase profitability through improved productivity.

© 2019 HOYA CORPORATION All Rights Reserved

28

28

Q&A -3Q

Eyeglass Lenses
How will the new plant in Vietnam impact your capacity? How do you expect tosell the extra production?

A

Construction is on schedule. The eyeglass lens market consists of custom-madeand ready-made products. Our new plant in Vietnam will produce the latter,
supplying product to emerging economies. In this way, we intend to gain afoothold in growth markets. The unit cost for ready-made products iscomparatively cheap, so the short-term impact on earnings will likely be small.
Glass Substrates for Hard Disk Drives
Have you entered negotiations with new customers regarding 3.5-inch products?

QA

We believe that glass substrates must be used for 10-layer (20TB) and later
HDDs. We have provided samples to HDD manufacturers, and we are engaged injoint development activities.

Q[Endoscopes]
Schedule for new product launches and future outlook for growthA

In Europe, we began selling new products in Q2. We expected to obtaincertification in the U.S. in the second half of the year to accelerate growth, but wehave not obtained certification as of this time. As a result, growth in western
Europe has been our growth driver and we still expect to see continued strong
overall growth.

© 2019 HOYA CORPORATION All Rights Reserved29

29

Appendix© 2019 HOYA CORPORATION All Rights Reserved30

30Life Care QoQ Earnings
Revenue

93.9

96.3

93.8

100.4

20.3% 20.9%

21.6%
18.8% 19.4%

(¥bn)

(¥bn)

91.9

cf. Operating Profit / Margin

Q2

Q3

Q4

FY18

Q1

Q2
FY19

18.7

19.6

Q2

Q3
FY18

18.1

18.2

Q4

Q1

21.7

Q2
FY19

*External revenue© 2019 HOYA CORPORATION All Rights Reserved3131IT QoQ Earnings
Revenue

49.0

cf. Operating Profit / Margin

42.7%

52.4

48.3

46.0% 46.2%
41.8%

46.0

(¥bn)

(¥bn)

43.7

44.7%

Q2

Q3

Q4

FY18

Q1

Q2

FY19

20.9

21.6

Q2

Q3
FY18

18.3

Q4

21.2

24.3

Q1

Q2
FY19

*External revenue© 2019 HOYA CORPORATION All Rights Reserved

3232Topics[HDD Substrates] Update on the Laos Factory Construction
We expect data center HDD demand to increase, and we arepresently constructing a new factory in Laos. This will be ourfirst facility in Laos. Progress is in line with schedule and we
expect the factory to go online in April 2020.

[Contact Lenses] Recycle Activity of Empty Cases
Every manufacturer produces disposal contact lenses made ofrecyclable polypropylene. Our contact lens operation (Eyecity)
began collecting empty cases in 2010. Today, we collaborate
with various companies and schools, having collected a total of
3.3 million tons and contributed 9.1 million tons in CO2
reduction. We have donated all sales (¥7.9 million) fromrecycled products to the Japan Eye Bank Association.
In October, we will expand the scope of this activity, working
with Higashiyamato City (Tokyo) to collect empty cases fromjunior high schools and city hall.
(photo; signing ceremony with Higashiyamato City)© 2019 HOYA CORPORATION All Rights Reserved33

33

Notes✓ Accounting standard: IFRS✓ The fiscal year ending March 2020 is referred to as “FY19” throughout thisdocument.
✓ Figures less than ¥100 million are rounded down. Accordingly, some discrepancies
may occur among totals. Ratios are calculated using actual numbers.
✓ Like-for-Like figures exclude foreign exchange and M&A impact as well as otherextraordinary factors.
✓ Profit from ordinary operating activities is calculated as reference
information for investors; calculated by deducting finance income/costs,
share of profits(loss) of associates, foreign exchange gain/loss and othertemporary gain/loss from pretax profit.
✓ We have omitted a detailed breakdown of financial statements.
Please refer to the tanshin or the quarterly report for detailed numbers.
http://www.hoya.co.jp/english/investor/library.html
34

34

Disclaimer

This report is provided solely for the information of professional investors andanalysts who are expected to make their own evaluation of the company. This
report contains forward-looking statements that are based on management’s
assumptions and beliefs in light of the information currently available to it andtherefore you should not place undue reliance on them. These forward-looking
statements involve known and unknown risks, uncertainties and other factorsthat may cause our actual results, performance or achievements to differ
materially from that anticipated in these statements. These factors include
changes in economic conditions, trends in our major markets, currency exchange
rates, etc. We accept no liability whatsoever for any direct or consequential loss
arising from any use of this report.

3535