Briefing Summary of the Analyst/Investor Meetingfor the 4th Quarter (January to March 2017) Financial Results
Ending Mar 31, 2017
Tokyo, May 11, 2017
Note: This memo is posted for reference purposes for the convenience of those who were unable toattend the meeting and is not a verbatim record of all statements made at the meeting. Please beaware that it has been compiled in a concise form at the judgment of the Company’s IR Group. Pleasealso refer to the cautionary notes on the final page.

[Overview of Financial Results by Mr. Ryo Hirooka, CFO]
Quarterly Revenue and Profit
 HOYA Corporation reported quarterly revenues of ¥126.3 billion, an increase of ¥4.6 billion(3.8%) compared to the same period in the prior fiscal year.
 Profit before tax was ¥24.4 billion, up ¥1.2 billion (5.4%).
 Quarterly profit was ¥19 billion, up ¥500 million (2.6%) year on year.
 On a yen basis, both revenues and profits were higher year on year.
(Reference: Quarterly Report, Supplementary Data, Quarterly Consolidated Statement ofComprehensive Income, P.7)
Impact of Foreign Currency Translation
 The yen rose against foreign currencies year on year, particularly against the euro (6.1%
increase).
 Foreign currency translation resulted in a reduction in revenues of ¥2.8 billion. In realterms, revenues were up ¥7.5 billion (6.2%) when excluding the impact of foreign currencytranslation.
 In real terms, quarterly profit before tax was nearly unaffected by foreign currencytranslation, increasing ¥600 million (3%).
(Reference: Quarterly Report, Supplementary Data, Notes 1 and 2, P.7)
Special Items
 HOYA recorded ¥1.3 billion in loss on foreign exchange for the fourth quarter. This loss
was related to the revaluation of receivables and payables denominated in foreign
currencies. This result was due to a slight increase in the value of the yen at the end of
March compared to the end of December. Loss on foreign exchange for the same period
in the prior fiscal year was ¥3.1 billion. Accordingly, loss on foreign exchange narrowed by¥1.8 billion year on year.
 Other revenue was down ¥1.2 billion. This was mainly due to the fact that HOYA property
overseas was expropriated by the local government during the fourth quarter. HOYA
received ¥900 million in relocation compensation.
Description by Business Segment (Reference: Quarterly Report, Supplementary Data, P.9)
Information Technology
 The Information Technology segment reported sales of ¥41.6 billion, a ¥2.2 billion(5.5%) increase year on year.
 Segment profit (profit before tax) amounted to ¥13.6 billion, ¥1.1 billion (8.5%) higher
year on year.

1 In real terms, sales increased ¥2.9 billion (7.2%) when excluding the impact of foreign
currency translation.
 Segment profit rose ¥1.3 billion (10.2%) in real terms when excluding the impact offoreign currency translation.
 In real terms, HOYA recorded higher operating profits of ¥1.7 billion for the segment
when excluding the impact of foreign currency translation.
Life Care The Life Care segment reported sales of ¥83.8 billion, up ¥2.8 billion (3.5%) year onyear.
 Segment profit (profit before tax) amounted to ¥12.3 billion, down ¥1.3 billion (9.7%)
year on year.
 In real terms, sales increased ¥5 billion (6.1%) when excluding the impact of foreign
currency translation.
 Segment profit fell ¥1.1 billion (8%) in real terms when excluding the impact of foreign
currency translation.
Sales of Major ProductsElectronics-Related Products
 The company recorded ¥32.5 billion in sales of electronics-related products(semiconductor and LCD-related products, glass substrates for hard disk drives) for thequarter. This represented a ¥2.3 billion (7.9%) increase compared to the same period
in the prior fiscal year.
 In real terms, sales increased ¥2.9 billion (9.7%) when excluding the ¥500 million
negative impact of foreign currency translation.
 Sales of glass substrates for hard disk drives and mask blanks for semiconductors
drove sales for the segment.
 Factors behind this significant increase in sales include weak performance in the priorfiscal year, continued shortages of NAND in the market, and our capturing a higher
share of the market.
 Sales of blanks, including products for EUV, increased quarter on quarter.
 Mask sales encountered challenges during the quarter. Production capacity has yet toreturn to full levels due to the impact of the earthquakes in Kumamoto.
 Sales of electronics-related products drove our swing to growth.
Imaging-Related Products
 HOYA recorded ¥9.1 billion in sales of imaging-related products, level year on year.
 In real terms, sales were down slightly, as the impact of foreign currency translation
was negligible.
 Compared to the first half of the fiscal year, sales declines leveled off.
Healthcare-Related Products
 HOYA recorded ¥62.4 billion in sales for healthcare-related products (eyeglass lens,contact lenses), up ¥1.7 billion (2.9%) year on year.
 In real terms, sales were up ¥3 billion (5%) after eliminating the ¥1.3 billion negative
impact of foreign currency translation. Given the large ratio of our sales in Europe, thestrength of the yen against the euro (6%) has a negative impact on our business.
 Sales of contact lenses and eyeglass lenses grew in the mid-single digits after2

excluding the impact of foreign currency exchange.
 Our eyeglass lens business in the Americas experienced double-digit growth, mainly
due to the impact of business acquisitions. Sales in Asia also grew in the double digits;
however, this was mainly due to poor performance in the prior year.
 Our acquisition of Performance Optics has not been concluded, as the regulatory
authorities have yet to give final approval.
Medical-Related Products
 HOYA recorded ¥21.4 billion in sales for medical-related products (endoscopes,
intraocular lenses, etc.), up ¥1.1 billion (5.3%) year on year.
 In real terms, sales were up ¥1.9 billion (9.5%) when excluding the ¥900 million
negative impact of foreign currency translation. We have a certain amount of sales
denominated in the euro, which were affected by foreign currency translation.
 Sales of intraocular lenses continued to be strong, growing by more than 10%.
Performance was strong both in Japan and Europe.
 Endoscope sales experienced double-digit growth year on year, demonstrating much
more stable growth compared to last year.
 By region, the Americas reported the greatest growth. The year’s performance looks
comparatively better than last year due to both weakness last year and the closing of amajor transaction in March of this year. Growth in Europe was in the mid-single digits.
Life Care Profitability
 Profit growth has not risen in ratio to sales growth.
 The main factors here are related to M&A in our eyeglass lens business. Here, we
recognized certain pre-acquisition costs related to an acquisition not yet completed, as
well as integration-related costs for an acquisition that has been completed. In addition,
we incurred plant start-up costs in our intraocular lens and eyeglass lens businesses.
Balance Sheets Other current assets decreased in connection with a business acquisition in the UnitedStates for our eyeglass lens business. This acquisition was finalized in January;
however, the funds were in escrow as of the end of December, presented as othercurrent assets on our balance sheet. Since this acquisition closed in January, therelated cash balance has been converted to goodwill, intangible fixed assets,inventories, property, plant and equipment, etc.
 (Reference: Quarterly Report, Supplementary Data, P.4)
Other
Our year-end dividend was the same as prior year at ¥45.
[Information Technology Segment Earnings Overview from Mr. Eiichiro Ikeda, COO]
Information Technology Segment
 The Information Technology segment reported 7% higher sales and 10% higher profits
after excluding the impact of foreign currency exchange. These results represent higher
year-on-year revenues and profits for the IT segment.
 Sales of photomasks for LCDs fell approximately 30%, mainly due to production capacity
declines in the wake of the Kumamoto earthquakes.
On the other hand, sales of glass substrates for hard disk drives and mask blanks forsemiconductors grew more than enough to compensate for the drop in photomask sales.

3The two main drivers of growth for glass substrates for hard disk drives were ourincreased market share and ongoing demand for hard disk drives in response to NAND
supply constraints. The main driver of growth for mask blanks was continued demand for
cutting-edge products, including products for EUV.
The most significant change quarter-on-quarter was the fact that we maintained sales ofimaging-related products at a level on par with the same period in the prior fiscal year. As
the market for digital cameras continues to contract, sales of related HOYA products also
decline. However, we were able to maintain sales nearly level year on year bycompensating with sales growth in other products.
Our initial forecasts reflected our expectation of a gradual decline in Information
Technology segment sales. However, we no longer feel the need to be quite so negativein our outlook.
The rate of decline for imaging-related product sales has leveled off, putting sales levelwith the prior fiscal year. The impact of the Kumamoto earthquakes will no longer affectyear-on-year results for mask sales performance. As long as we increase production
capacity, we should be able to grow sales. The market for 2.5-inch glass substrates forhard disk drives has stabilized, and we expect to see gradual growth in sales of near-line
server products.

Mask Blanks for Semiconductors
 Sales of mask blanks were strong, rising by more than 10% year on year.
 All of our semiconductor manufacturing customers have been active in developing cuttingedge products. We were able to capture much of this demand, leading to an improved
product sales mix.
 These cutting-edge products include our mask blanks for EUV, sales of which have started
to increase. Sales of this product have risen two-fold compared to the prior year,
accounting now for more than 10% of all sales of mask blanks for semiconductors.
 Semiconductor manufacturers continue to work toward adopting EUV technologies for
single-nanometer nodes some time between 2018 and 2019. We expect fiscal 2017 to bea strong year for development demand for related products.
Photomasks for LCDs
 The disaster at our Kumamoto Plant caused a near-30% decline in sales of photomasksfor LCDs.
 We have already explained our plan to close the Kumamoto Plant, covering production
capacity through our plants in Taiwan and Korea. Despite having increased production
capacity in stages, we have yet to reach pre-earthquake levels. We will be systematic in
our measures to increase production capacity, returning to pre-earthquake volume sometime during the second half of fiscal 2017.
Glass Substrates for Hard Disk Drives (HDDs)
 Sales of glass substrates for hard disk drives rose more than 20% year on year, even after
eliminating the impact of foreign currency exchange.
 Although sales fell throughout the first and second quarters of fiscal 2016, performanceswung to year-on-year growth beginning in the third quarter. This increase was due toseveral reasons, including our capture of market share after the exit of a competitor fromthis business, the constrained supply of NAND, and the lack of SSD units for us in PCs.
These factors combined to prevent hard disk drive demand from falling as much as we
originally anticipated. Performance remained strong in April, and we presently believethese market conditions will continue until some time in 2017.

4However, we believe that demand for 2.5-inch notebook PC hard drives will decline overthe medium and long term. We have created our business plans based on thisassumption. The market for hard disk drives used for near-line servers in data centers andother applications is growing. The market will transition away from the current aluminum
substrate to glass, and we are engaged in joint development with customers to create new
glass products to be in position. We are working toward the shift to mass production within
the year.

Imaging-Related Products
 Sales of imaging-related products fell 2% year on year. Sales were nearly level, just a
0.6% decrease, after eliminating the impact of foreign currency exchange. After excluding
the impact of our closing our pickup lens products, performance was level with the prioryear.
 Although the market for digital cameras is contracting overall, the compact digital camera
niche is going through a particularly marked decline. Here, our sales of products forcompact digital cameras has fallen significantly as a ratio of overall sales. While thecontraction of the digital camera market begins to have less impact on our business, wehave also been growing sales of products for other applications, including car-mounted
cameras and surveillance cameras. As a result, sales were level year on year.
 While we expect the digital camera market to continue to contract throughout fiscal 2017,
sales of products to this market now represent a declining portion of overall sales.
Accordingly, we do not believe the impact of this market decline will have the same
significant impact on our business as in the past.
 Our basic approach is to reduce expenses ahead of anticipated sales decreases to ensureprofitability. In our current situation, however, we have not been able to catch up to our
projections, resulting in being late in reducing certain costs. However, the rate of sales
decreases will level off in the future, allowing us to make meaningful improvements in
profitability for fiscal 2017.

[Life Care Segment Earnings Overview from Mr. Hiroshi Suzuki, CEO]
Eyeglass Lenses
 Eyeglass lens sales increased nearly 5% after eliminating the impact of foreign currency
exchange.
 Sales in Japan fell 3%, dragging down overall performance.
 Growth in Europe was generally in line with market growth at between 1% and 2%. In theAmericas, where we engaged in M&A, sales growth was in the double digits. Like-for-likegrowth, even after eliminating the impact of M&A, was between 6% and 7%. Growth in
Asia was between 12% and 13%. This performance in Asia and the Americas reflects oursolid operations in these regions. Japan dragged down performance, resulting in overall
growth of 5%.
 In the Americas, sales growth outpaced market growth by a significant margin. We expect
these conditions to continue for some time, acting as a tailwind for company performance.
Contact Lenses
 Contact lens sales increased by nearly 5%.
 Sales growth is only natural as we open more stores. Over the past five to six years, wehave been opening more stores in large shopping malls in outlying regions of Japan.

5Consumers who traditionally do their purchasing near train stations are now traveling to
shopping malls. We moved early to take advantage of this trend to open stores in
shopping malls. More recently, there has been a slowdown in mall construction. Malls
have also become smaller in size. As a result, opening stores in malls is no longer as
simple as it once was.
In Tokyo, we are opening stores in new areas. However, we have seen cannibalization toa greater extent than we anticipated. In one case, we opened stores separated by the
distance of two train stations. In the end, one-third of new customers had come from one
store or the other. It has taken longer than expected for new stores to take off. The issue
we face now is how to create a structure to deliver earnings from smaller stores in smaller
commercial markets. We still have capacity to open new stores, however. While we cannotchange our approach 180 degrees, we must consider the fact that cannibalization is agreater issue that we initially thought.

Endoscopes
 Endoscope sales rose 11% after eliminating the impact of foreign currency exchange.
 Growth was 30% in the Americas, reflecting a significant M&A deal and the relatively low
performance during the prior fiscal year. Sales rose 5% in Europe.
 In the United States, the market has traditionally been one in which the thousands of small
clinics purchased a new scope once every five years or so. Today, as larger hospitalgroups across the U.S. absorb smaller hospitals, we have seen a major change inpurchasing trends. Now, rather than doctors purchasing their own scopes, we are seeing amore businesslike approach with group buyers managing purchase transactions. We
anticipate that the U.S. market structure will introduce wide swings in sales performance inthe future. While the U.S. is leading this trend of consolidation into groups, Europe ismoving to a similar structure. We have already seen signs of this trend during the fourth
quarter.
 While we have had challenges in the United States, including limitations on sellable
products, we have put together our product lineup and received permission to sell a new
product. Accordingly, the business environment is looking brighter.
Intraocular Lenses (IOLs)
 Sales of intraocular lenses rose 15% after eliminating the impact of foreign currency
exchange.
 While this is not a major improvement quarter on quarter, performance was affected by alack of production capacity. Our new plants will begin operations some time between Julyand August, which we expect will result in another step up in sales growth during thesecond half of the fiscal year.
 Feedback for our new products has been overwhelmingly positive, and at present we canonly supply about half of the demand we are seeing.

[Company Overview from Mr. Hiroshi Suzuki, CEO]

Our Life Care segment reported lower profits on higher sales. This was mainly due toseveral temporary or one-time expenses, Including the cost of a business acquisition,
plant start-up costs, and a reduction in inventories. Since these are not regular costs, weare not overly concerned. As we want to continue to grow sales in our Life Care segment,
we are incurring up-front costs. Our primary goal is to grow sales in a stable, sustainable
manner.

6

Performance in our Information Technology segment has started to become moreconsistent, and we expect the current situation to continue for the time being. While theimpact of the earthquakes has been a drag on our mask business, conditions havestabilized overall. We forecast profitability for the segment as a whole to grow steadily,reflecting our expectation that our business in glass substrates for hard disk drives willcontinue its current trajectory for some time.

[Q&A Highlights]
Q1: What is your outlook for glass substrates for hard disk drives? How long do you expect thecurrent high demand to continue?
A1: We do not expect production capacity for flash memory to catch up with demand until after
the end of the year.
However, we do not expect demand for 2.5-inch substrates to drop at that time.
Compartmentalization has begun to occur within the notebook PC market, meaning that
hard disks will not simply be replaced by flash memory. The market will divide, for example,
into those who use storage in mobile situations and those who use storage generally in theoffice.
In this way, notebook PCs with HDD do not always compete with notebook PCs with flash
memory.
Therefore, an increase in flash memory usage does not necessarily mean an equivalentdecrease in 2.5-inch substrates. (Hiroshi Suzuki, CEO)Q2: What is the outlook for 3.5-inch glass substrates for near-line servers?
A2: The near-line server market is beginning to use 3.5-inch glass substrates.
Volume for these glass substrates will grow in all likelihood. While we expect sales andprofits of our glass substrates for hard disk drives to grow this year, growth is likely tostabilize, resulting in flat performance next year and beyond. (Hiroshi Suzuki, CEO)Q3: While fourth quarter sales of EUV products doubled compared to the same period in theprior fiscal year, what is your outlook for next year?
A3: We expect fiscal 2018 performance to double 2017 results. (Eiichiro Ikeda, COO)
Given the pellicle problem and other issues, EUV usage in mass production is still someways off. It is nearly a foregone conclusion that single node can only be created using EUV.
It would be impossible to try to stop at this point. At the same time, we are being
conservative in our view as to whether sales of products for EUV will grow for the indefinite
future. (Hiroshi Suzuki, CEO)
Q4: Cash at the end of the year amounted to ¥300 billion. Has your policy related toshareholder returns changed at all? Also, please tell us about your current views on
acquisitions.
A4: Our approach to shareholder returns has not changed. We intend to return surplus funds toour shareholders.
We will also keep an eye on the market for the timing to repurchase shares. We expect tomake more acquisitions as the opportunities arise. At the same time, we are properly
integrating the businesses we have already acquired. (Ryo Hirooka, CFO)
Q5: What are your profit ratios on eyeglass lenses?

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A5: Eliminating the impact of temporary costs, fourth quarter performance was at the proper
cruising speed. However, we must improve our efficiency. One reason profit ratios werelower was that our up-front investments did not function at high efficiency. We are working
to generate the correct return on investment here.
In the retail market, large chains are absorbing the smaller chains. While we are seeing
price pressures, we intend to produce better internal efficiencies, targeting a profit ratio of
18%. (Hiroshi Suzuki, CEO)Q6: What are your plans for fiscal 2017 capital investment and expectation for depreciation
costs?
A6: Our approved budget at present for capital investment is ¥20 billion. We expect to incur¥27 billion in depreciation and amortization.
We also expect to see amortization of intangible fixed assets related to acquisition
accounting treatment for the upcoming acquisition of Performance Optics this fiscal year.
We do not have any specific plans for major capital investment. (Ryo Hirooka, CFO)
Q7: What is the outlook for digital camera demand?
A7: I think it is too early to predict a bottom in the market for digital cameras themselves. At thesame time, other applications are beginning to emerge, mitigating some of the risk in our
imaging-related product business as a whole. (Hiroshi Suzuki, CEO)End
Certain statements contained in this report constitute forward-looking statements regarding theCompany’s future performance and environment of the industry in which the Company is
involved. Forward-looking statements are based on the judgments of the Company andcorporate group obtained based on information obtainable at the time the statements are madeand they also contain risks and uncertainties. The Company does not guarantee thecompleteness or accuracy of the content. Consequently, you are advised to refrain frommaking investment judgments relying entirely on these forecasts. Actual performance and theindustry environment may differ materially from those expressed by the forward-looking
statements for a number of reasons. You are requested to make final decisions regarding
investment, etc., on your own. Please be aware that we cannot take responsibility for theoutcome of investments.

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