FY19Q1
F i n a n c i a l
R e s u l t s
July 30, 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)

Q1 FY19Q1 FY19

YoY

YoY(%)

Revenue

138.9

140.8

+1.9

+1%

Pretax Profit

35.2

37.0

+1.8

+5%

Net Profit

28.5

30.1

+1.7

+6%

cf. Profit fromordinary operating
activities*

35.3

38.5

+3.1

+9%

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

© 2019 HOYA CORPORATION All Rights Reserved

3➢Revenue amounted to ¥140.8 billion, up ¥1.9 billion (+1%) year on year
➢Quarterly profit before tax was ¥37.0 billion, up ¥1.8 billion (+5%)➢Profit for the quarter amounted ¥30.1 billion, up ¥1.7 billion (+6%)

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

YoY

YoY(%)

Revenue

143.0

140.8

-2.2

+4.1

+3%

PretaxProfit

37.2

37.0

-0.1

+2.0

+6%

Net Profit

30.2

30.1

-0.1

+1.7

+6%

Average Rates(A)Q1 FY18(B)Q1 FY19

Variance

US$
EURO
BAHT

¥109.53¥129.01¥3.39¥109.67¥122.87
¥3.47

-0.1%
+4.8%
-2.4%

(¥bn)

© 2019 HOYA CORPORATION All Rights Reserved

4➢A significant fluctuation in the valuation of the yen during this quarter impacted results➢Assuming exchange rates level with the same period in the prior year, real sales growthwould have been ¥4.1 billion (+3%)➢Meanwhile, foreign exchange had little or no appreciable impact on profits➢The impact of foreign currency exchange on quarterly profit before tax was a -¥100 million;
in real terms growth was ¥2.0 billion (+6%)

4Notes RE: Special Items
Comprehensive Income Statement
Q1 FY18(¥bn)

IncomeExpenses

Q1 FY19

YoY

139.9
104.7

142.4
105.4

+2.5
+0.7

D&A

6.8

8.4

+1.5

Other Expenses

30.1

28.6

-1.5

35.2

37.0

+1.8

Pretax Profit

Due to applying a new lease accounting policy etc.,
D&A increased while other expenses decreased.

© 2019 HOYA CORPORATION All Rights Reserved

5➢ The application of new lease accounting standards resulted in additional amounts ofdepreciation and other expenses➢ Depreciation increased due to an increase in lease assets; however, other expenses (officeand store rents, etc.) decreased➢ While the impact was not significant, foreign exchange loss was ¥1.8 billion, ¥1.4 billion
yen higher year on year

5Life Care Earnings
Q1 FY18Q1 FY19

YoY

YoY(%)

Revenue*

91.3

93.8

+2.5

+3%

Pretax Profit

17.4

17.3

-0.1

-1%

cf.Operating Profit

17.8

18.2

+0.3

+2%

19.5%

19.4%

-0.1pt(¥bn)

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

6➢Life Care segment sales amounted to ¥93.8 billion, an increase of ¥2.5 billion year on year
➢Segment profit (profit before tax) declined ¥0.1 billion, reaching ¥17.3 billion

6Life Care Earnings (CCB)
Previous
Rate

Current
Rate

FX
Impact

Real
YoY

Real
YoY(%)

Revenue*

95.8

93.8

-2.0

+4.5

+5%

Pretax Profit

17.3

17.3

-0.0

-0.1

-1%

cf.Operating Profit

18.2

18.2

-0.0

+0.4

+2%

(¥bn)

*External revenue© 2019 HOYA CORPORATION All Rights Reserved

7➢Foreign currency translation had a -¥2.0 billion impact on Life Care segment results; real
sales growth amounted to ¥4.5 billion➢Segment profit (profit before tax) was ¥100 million lower in real terms after excluding theimpact of foreign currency translation

7

IT Earnings
Q1 FY18Q1 FY19

YoY

YoY(%)

Revenue*

46.6

46.0

-0.6

-1%

Pretax profit

19.0

20.5

+1.4

+8%

cf.Operating Profit

18.8

21.2

+2.4

+13%

40.3%

46.0%

+5.7pt(¥bn)

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

8➢Information Technology segment sales amounted to ¥46.0 billion, a decrease of ¥0.6 billion
year on year
➢Segment profit (profit before tax) rose ¥1.4 billion to ¥20.5 billion

8

IT Earnings (CCB)
Q1
FY18

Q1
FY19

FX
Impact

Real
YoY

Real
YoY(%)

Revenue*

46.1

46.0

-0.2

-0.4

-1%

Pretax profit

20.6

20.5

-0.1

+1.5

+8%

cf.Operating Profit

21.2

21.2

-0.1

+2.4 +13%(¥bn)*External revenue© 2019 HOYA CORPORATION All Rights Reserved

9➢Foreign currency translation had a -¥200 million impact on IT segment results; real sales
growth was -¥400 million➢Real segment profit (profit before tax) growth amounted to ¥1.5 billion after excluding theimpact of foreign currency translation

9

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

Q1 FY18Q1 FY19

YoY

YoY(%)

69.6

70.4

+0.8

+1%

Revenue*Constant Currency Basis(¥bn)

Previous Rate

Current Rate

Real YoY

Real YoY(%)

71.9

70.4

+2.3

+3%

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

10➢Health care related products (eyeglass lenses, contact lenses) sales were ¥70.4 billion, up¥0.8 billion (+1%) year on year
➢Real sales growth amounted to ¥2.3 billion (+3%) after eliminating foreign currency impact

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

Q1 FY18Q1 FY19

YoY

YoY(%)

21.7

23.3

+1.7

+8%

Revenue*Constant Currency Basis(¥bn)

Previous Rate

Current Rate

Real YoY

Real YoY(%)

23.9

23.3

+2.2

+10%

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

11➢Medical-related products (endoscopes, intraocular lenses, etc.) sales were ¥23.3 billion, a¥1.7 billion (+8%) increase year on year
➢Real growth excluding foreign currency translation impact was ¥2.2 billion (+10%)➢Intraocular lens performance rose significantly due to the impact of the acquisition closed in
January; like-for-like revenues were up 5%➢Endoscopes rose 2%, showing a slowing of growth; however, in real terms, the growth rate
was in the mid-single digits due the impact of orders received but awaiting shipment

11

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

Q1 FY18Q1 FY19

YoY

YoY(%)

35.4

37.0

+1.6

+4%

Revenue*Constant Currency Basis(¥bn)

Previous Rate

Current Rate

Real YoY

Real YoY(%)

37.0

37.0

+1.6

+5%

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

12➢Electronics related products (glass substrates for semiconductors, LCD-related products,
and hard disk drives) sales amounted to ¥37.0 billion up ¥1.6 billion (+4%) year on year
➢Revenues amounted to 1.6 billion (+5%) in real terms after excluding the impact of foreign
currency translation➢Sales of EUV blanks doubled➢HDD substrates were down 11% due to slow start of 3.5” products12Earnings by Sub-Segment
Imaging
Camera Lenses, Etc.

(¥bn)

Q1 FY18Q1 FY19

YoY

YoY(%)

11.1

9.0

-2.2

-20%

Revenue*Constant Currency Basis(¥bn)

Previous Rate

Current
Rate

Real YoY

Real YoY(%)

9.1

9.0

-2.0

-18%

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

13➢Imaging related products sales amounted to ¥9.0 billion, down ¥2.2 billion (-20%) year on
year➢These products were essentially unaffected by foreign currency translation➢Revenue was down 11% year on year on a like-for-like basis after excluding terminatedbusinesses

13Balance Sheet
Q4 FY18(¥bn)

Q1 FY19

QoQ

Non-current Assets

255.8

276.4

+20.6

1

Current Assets
Capital

508.1
627.7

486.8
611.3

-21.3
-16.4

2

Non-current Liabilities

24.4

33.4

+9.0

Current Liabilities
Total

111.8
763.9

118.5
763.2

+6.7
-0.7

1

2

Property, plant and equipment increased ¥24.9 bn due to theapplication of a new lease accounting policy and new capacity
investments.
Treasury stock increased due to share buybacks (¥-18.6 bn).

© 2019 HOYA CORPORATION All Rights Reserved

14➢Non-current assets on the balance sheet increased ¥20.6 billion. This result was mainly due
to the adoption of new lease accounting and a ¥24.9 billion increase in property, plant andequipment due to new capital investments➢These increases resulted in a likewise increase in long-term and short-term debt

14

Cash Flow
Q1 FY18(¥bn)

Q1 FY19

YoY

Operating CF

25.8

35.4

Investing CF-32.2-10.9 +21.3

1

Financing CF-16.9-37.7 -20.8

2

Cash & Cash Equivalents
at the end of the term

226.2

273.8 +47.6

1

2

+9.7

Net cash used in investing activities decreased due to an investment
in Toshiba Memory (¥27bn) in the year-ago quarter.

Financing cash outlays increased due to share buybacks (¥19.1 bn)*
*Schedule to buyback a maximum of ¥60 bn by the end of October 2019.

© 2019 HOYA CORPORATION All Rights Reserved

15➢Amounts were reallocated between operating and investing cash flows due to the impact of
new lease accounting➢Financing cash flows outlays were ¥20.8 billion higher. This increase was mainly due tooutlays of ¥19.1 billion for stock buybacks not conducted during the same period in the priorfiscal year.

15

FY19 Q2 Forecast(¥bn)

Q2 FY18

Q2 FY19

YoY

YoY(%)

Revenue
PretaxProfitNet Profit

142.0

143.2

+1.2

+1%

38.4

37.0

-1.5

-4%

31.2

29.9

-1.4

-4%

✓ We expect our Life Care Business sales to grow YoY,
driven by M&A effects in IOL and sustained growth ofcontact lenses.
✓ We expect camera lenses etc. to decline, while EUV
blanks to grow strongly. As a result, we expect our IT
Business sales to remain the same level YoY.
© 2019 HOYA CORPORATION All Rights Reserved

16➢We forecast revenue of ¥284.0 billion and pretax profit of 74.0 billion during the interim
period➢Our assumptions for foreign exchange rates are ¥105 to the USD and ¥120 to the EUR

16

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)

-11%

+22%

HDD Substrates

Masks & Blanks(LSI/FPD)-11%

Imaging+1%© 2019 HOYA CORPORATION All Rights Reserved

18➢Our IT Business recorded revenue growth of 1% and profit growth of 13% when including
the impact of foreign currency translation and discontinued products (lens unit)➢Profit ratio was 46%, up five points from the previous quarter➢HDD Substrates sales fell 11%, Masks & Blanks sales rose 23%, and Imaging sales fell 11%18

Overview by ProductThis Quarter
Driven by 7nm tape-outs, DUV sales grew favorable. EUV
sales doubled to account for 29% of total blanks revenues.

Going Forward
LSI Blanks

We expect continued growth in EUV blanks, backed byincremental EUV scanner shipments and aggressive R&D.

This Quarter
We saw strong sales of FPD Masks in the Chinese market.
LSI Mask sales declined due to the contraction of theexternal mask shop 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]➢We recorded growth in essentially all categories. High-end products grew at 30%-pluscompared to the prior quarter➢EUV product sales doubled, rising to account for 29% of blanks sales➢EUV scanner manufacturers sold seven units in the most-recent quarter, progressing in linewith a plan for 30 units during the year; we expect demand to grow with shipments of
exposure device➢Mass production has started for 7nm products for EUV; preparations are under way fordevelopment of 5nm and 3nm next-generation nodes➢Although the optical DUV end market was weak, the strong growth was due more to trends
in tapeout numbers and designs than due to the number of end markets for blanks➢The most recent 7nm nodes achieved strong growth due to both applications for EUV
development and demand for optical as backup➢In the future, it will be important to supply strong demand from semiconductor
manufacturers in both quality and quantity[FPD/LSI Masks]➢Despite lower revenues in Japan, Taiwan, and Korea, revenues doubled in the Chinese
market, resulting in 5% growth for FPD masks➢We intend to actively capture demand for masks used for high-definition OLED in the
Chinese market

19Overview by ProductThis Quarter

HDD
Substrates
HDD Substrates

Growth of 3.5” sales slowed due to stagnant data center
demand and was insufficient to offset 2.5” decline. As aresult, overall sales declined YoY.
Going Forward

We expect 3.5” demand for data centers to gradually
recover from Q2. We see signs of recovery.

This Quarter

Imaging
Imaging

In addition to the continued decline of compact camera
sales, interchangeable lens sales also declined due to
weakness in the end market.

Going Forward
Continue to develop new applications and channels.

© 2019 HOYA CORPORATION All Rights Reserved

20[Substrates for Hard Disk Drives]➢Until the prior quarter, 3.5" performance compensated for contraction in 2.5" performance
to maintain level year-on-year results; however, the disparity in balance this quarter resulted
in an 11% decrease➢The 20%+ contraction in 2.5" product was within the scope we projected; in contrast our
3.5" product did not grow as much as we projected➢3.5" product recorded negative QoQ growth for the first time ever➢As game devices are beginning to move to SSD, 2.5" replacement will continue,
experiencing expected declines on the order of 20%-plus in the future➢Data center investment has been weak, decreasing demand; more recently, however, we
see a steady rise in orders and other signs of recovery➢However, more important that short-term data center trends is growth stemming from atransition to glass substrates by the remaining two HDD manufacturers➢Our growth scenario here has not changed, as these makers have plotted the use of glass
substrates on the roadmap for 18TB-20TB products, beginning development activities[Imaging-Related Products]➢In addition to ongoing contraction in the point and shoot market, the market forinterchangeable lenses has also declined➢In-vehicle cameras are the only applications experiencing growth➢We will continue to develop new categories, not relying on photography applications20

1. Financial Results
2. IT Business Overview
3. Life Care Business Overview [Hiroshi Suzuki, CEO]4. Summary
5. Q&A© 2019 HOYA CORPORATION All Rights Reserved21

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

+2%
+1%

+7%

Endoscopes+0%Eyeglass Lenses

Contact Lenses Other

+5%
IOLs

+3%
© 2019 HOYA CORPORATION All Rights Reserved

22➢Sales of eyeglass lenses increased 1%, sales of contact lenses increased 7%, sales ofendoscopes rose 2%, and sales of intraocular lenses rose 5%22

Overview by ProductThis Quarter
While we target to expand our sales to chain channels,
capacity constraints remained to be an issue. As a result,sales growth was slow.

Going Forward
Eyeglass Lenses

Second factory in Vietnam to go online on November.
Tackle mass merchants, mainly in North America.

This Quarter
Sales grew by gaining new customers and unit price hikes.
We acquired a retailer based in Chugoku/Kyusyu region.
No. of stores at quarter-end: 315（New 1/Closed
1/including M&A）

Contact Lenses

Going Forward
Continue to target customer increases and unit price hikes.

© 2019 HOYA CORPORATION All Rights Reserved

23[Eyeglass Lenses]➢As we look toward chain retail sales growth, capacity shortages have put the brakes onsales activities, limiting performance to minor growth➢We also incurred opportunity losses in Brazil due to operational issues➢Severe heat in Europe and a long rainy period in Japan have also impacted sales➢Although the situation is likely to remain the same in Q2, we plan to increase capacity
beginning in the second half of the year, which should allow us to step on the accelerator forthis business[Contact Lenses]➢We acquired a retailer with six stores in the Chugoku and Kyushu region of Japan➢Near-sightedness is on the rise among younger consumers owing in part to the impact ofsmartphones and other electronic devices. Further, more people in the senior consumer
segment are using contact lenses. The combination of these and other factors is growing themarket as a whole.
➢We expect to be able to increase both unit prices and volume in the future23

Overview by ProductThis Quarter
We resumed selling in China as excess inventory at ourChinese distributor improved. Transitioned to growth.

Going Forward
IOLs

Target complete digestion of excess inventory in China.
Promote integration of recently acquired companies.

This Quarter
Sales grew nicely in Asia and Europe driven by new
product launches. However, sales in the Americas
declined due to delays of delivery date etc.

Going Forward
Endoscopes

Accelerate sales growth through launch of new products.

© 2019 HOYA CORPORATION All Rights Reserved

24[Intraocular Lenses]➢While direct sales is growing, our sales agent channel is holding us back➢Excess inventory levels at our sales agent in China have been shrinking as part of arecovery; however, we still see the need for stronger sales agent management➢Sales efficiency cannot rise solely on the back of direct sales; strengthening sales agentsand OEM channels is an ongoing issue➢We are continuing the post-merger integration process with Mid Labs/Fritz Ruck (acquiredin January 2019), working toward sales synergies[Endoscopes]➢As we cannot ship to joint purchasing organizations in the Americas without an entire
lineup of products ready, sales growth was only 2%, reflecting strong orders but a lack ofability to ship
➢We will have new products ready in the second half of the year, leading us to expect
developments in a positive direction24

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]➢Mask blanks for semiconductors: Development has begun for 3nm optical (DUV) exposure
devices➢FPD masks: Our presence in the Chinese OLED market has risen dramatically➢HDD substrates: Our customer struggled with 14TB devices; however, it appears they will
launch a 16TB device ahead of their competitors➢Eyeglass lenses: We have heard reports that our competitor has acquired a leading chain in
Europe. If the purchase goes through, we believe there is a chance that competition withother chain stores could have a net positive result for us.
➢Intraocular lenses: Since our competition has improved their organization, we intend to
redouble our efforts➢Other: We launched an ESG Committee➢General Summary: While growth rates slowed in Q1, we see no need for pessimism as we
expect growth to recover going into the second half of the year25

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[Mask Blanks for Semiconductor]
Can you provide an update on the latest news related to Korea, yourcompetitive environment, etc.?

A

Blanks are exempt from the export procedural changes. We can also shipfrom our plant in Singapore. While certain customers may secure
inventory in the early stages, it is important in this competitiveenvironment to meet customer demand in terms of both volume andquality.

Q[HDD Glass Substrates]
Chinese data centers are experiencing special demand. What is theimpact on your business?

A

Since July, we have experienced a recovery in HDD substrate orders.
However, as we are a component manufacturer rather than a finishedgoods maker, we are not sure whether demand from China has been afactor.
Investment in data centers in the Middle East, Africa, and India has
become necessary, and this may be tied to increased demand in China.

© 2019 HOYA CORPORATION All Rights Reserved

27

27

Q&A -2
Q[Life Care]How do you assess profit ratio for Q1 by product? For which products will you beable to raise profitability in the future?

A

Our assumption is that Q1 is a weak quarter for Life Care. endoscopes has struggled
to see profit ratio growth due to the shift of shipment timing to the following quarter.
In terms of foreign currency translation, even though endoscopes experienced thenegative impact of a weak euro, the outcome was in line with our projections.
Since we have increased production for highly profitable eyeglass lenses, we expect
to see a contribution to profitability during the second half.

Q[IT]
At the previous financial results briefing, you mentioned taking measures to prevent profitability
declines stemming from increased depreciation occurring in the second half of this year andbeyond. What has been your progress with these measures?

A

We expect to see an increase in sales of comparatively higher-profit products due to investmentin production increases in the second half and later. Accordingly, we do not project any significant
changes in profitability. At the same time, despite having products for which we forecast acontraction, much of the related depreciation has been completed, meaning lower sales will nothave that much impact on profitability. We expect to maintain profit structure for the IT segment
as a whole.
Q1 profit ratio (46%) for the IT segment included temporary factors leading to higher-thannormal results. We want to maintain a 40%-plus level in the future.

© 2019 HOYA CORPORATION All Rights Reserved

28

28

Q&A -3
Q[Life Care]
Do you expect improvements to operational issues will lead to improved
profitability?

A

We are already taking measures to solve our operational issues.
We continue to make up-front investments as we are still in a phase of
securing market share for our Life Care segment. We expect to see
gradually improving profitability through the absorption of fixed costs instemming from better business efficiencies.

© 2019 HOYA CORPORATION All Rights Reserved29

29

Appendix© 2019 HOYA CORPORATION All Rights Reserved30

30Life Care QoQ Earnings
cf. Operating Profit / Margin

Revenue

91.3

91.9

93.9

96.3

93.8

Q1

Q2

Q3

Q4

Q1

FY18

FY19

(¥bn)

(¥bn)

19.5%

20.3% 20.9%

17.8

18.7

19.6

Q1

Q2

Q3
FY18

18.8% 19.4%

18.1

18.2

Q4

Q1
FY19

*External revenue© 2019 HOYA CORPORATION All Rights Reserved3131IT QoQ Earnings
cf. Operating Profit / Margin

Revenue

46.6

49.0

48.3

Q1

Q2

Q3
FY18

(¥bn)

(bn)

40.3%

43.7

46.0

18.8

Q4

Q1

Q1

FY19

42.7%

44.7%

20.9

21.6

Q2

Q3
FY18

46.0%
41.8%

18.3

Q4

21.2

Q1
FY19

*External revenue© 2019 HOYA CORPORATION All Rights Reserved

3232Topics
Launching ESG Committee✓ Forming the very first ESG Committee for HOYA. Scheduled to start activities inAugust 2019.
✓ Tackle ESG issues and improve disclosure.
MW10 authorized by Amakusa City as Japan's first welfare apparatus daily living tool.
✓ In spring 2018, we launched a scotopic vision eyeglass-typewearable device, HOYA MW10 HiKARI, which assists individuals
who have difficulty seeing in dark places due to nyctalopia.
✓ In July 2019, the product was authorized by Amakusa City,
Kumamoto Prefecture, as a daily living tool, a welfare apparatus
eligible to receive subsidies. This will allow people to buy the
product at Y39,500 (excluding tax), which is 10% of the suggested
retail price Y395,000.
✓ HOYA aims to expand this to other local governments in Japan.
© 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