Briefing Summary of the Analyst/Investor Meetingfor the 3rd Quarter (October to December 2016) Financial Results
Ending Mar 31, 2017
Tokyo, January 31, 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 ¥122.6 billion, a decrease of ¥5.1
billion (4% decrease) compared to the same period in the prior fiscal year.
 Profit before tax was ¥32.5 billion, up ¥1.3 billion (4.2% increase) year on year.
 Quarterly profit was ¥25.1 billion, up ¥1 billion (4.4% increase).
(Reference: Quarterly Report, Supplementary Data, Quarterly Consolidated Statementof Comprehensive Income, P.7)
Impact of Foreign Currency Translation
 During the third quarter, the Japanese yen trended weaker against foreign currencies
compared to the prior quarter. However, the yen remained strong relative to the maincurrencies used by our consolidated subsidiaries (U.S. dollar, euro, baht).
 Foreign currency translation resulted in a reduction in revenues of ¥8.5 billion. In realterms, revenues were up ¥3.4 billion (2.7% increase) when excluding the impact offoreign currency translation.
 Quarterly profit before tax increased ¥3.1 billion (9.9% increase) year on year in realterms when excluding the ¥1.8 billion negative impact of foreign current translation.
(Reference: Quarterly Report, Supplementary Data, Notes 1 and 2, P.7)
Differences between Profit from Ordinary Operating Activities and Profit before Tax(Reconciling Items)
 HOYA recorded a ¥3.8 billion gain on foreign exchange for the third quarter. These gains
were related to the revaluation of assets denominated in foreign currencies. This result
represents a ¥4.2 billion increase in foreign exchange gains compared to ¥400 million
in foreign exchange losses recorded for the same period in the prior fiscal year.
 Other factors contributed to approximately ¥500 million in higher profits for the period.
These factors include the recording of restructuring costs during the third quarter of theprior fiscal year which were not incurred this period, and the recording of several
hundred million yen in insurance proceeds.
 Reconciling items to arrive at profit from ordinary operating activities amounted to a ¥4.7
billion increase in profits.
 HOYA recorded a positive impact of ¥3.1 billion to profit before tax after eliminating theimpact of foreign currency translation. Considering this and the ¥4.7 billion in reconciling
items resulting in increased profits, we can conclude that profits from operating activities
were lower by ¥1.6 billion in real terms compared to the prior fiscal year. As a result,1

revenue was higher and profit was lower year on year in real terms.
(Reference: Quarterly Report, Supplementary Data, P.11)
Results by Business Segment
Description by business segment (Reference: Quarterly Report, Supplementary Data, P.16)
Information Technology
 The Information Technology segment reported revenues of ¥43 billion, a ¥3.2 billion
decrease (7% decrease) year on year.
 In real terms, revenues were down ¥500 million (1% decrease) when excluding the ¥2.8
billion negative impact of foreign currency translation.
 Segment profit (profit before tax) amounted to ¥16.9 billion, ¥74 million lower (0.4%
decrease) year on year.
 In real terms, segment profit was up ¥900 million (5.4% increase) when excluding the ¥1billion negative impact of foreign currency translation.
 Reconciling items between profit from ordinary operating activities and segment income
include ¥1.8 billion in factors for increased profits for the third quarter. These reconciling
items consist mainly of the impact of foreign exchange, as well as proceeds frominsurance and gain on sale of fixed assets. When considering this ¥1.8 billion inreconciling items in light of the ¥900 million of segment income after excluding the impactof foreign currency translation, we can conclude that approximately ¥900 million of thisamount was a decrease in profits stemming from operating activities in real terms.
Life Care The Life Care segment reported revenues of ¥78.7 billion, down ¥1.6 billion (2%decrease) year on year.
 In real terms, revenues increased ¥4.1 billion (5% increase) when excluding the ¥5.7
billion in negative impact of foreign currency translation.
 Segment profit (profit before tax) amounted to ¥13.9 billion, down ¥1 billion (6.4%
decrease) year on year.
 Excluding the ¥800 million negative impact of foreign currency translation on profit,
segment profit was down ¥100 million (0.9% decrease).
 There were no significant reconciling items between profit from ordinary activities andsegment profit. In real terms, profit from operating activities was approximately 1% lower,with the segment recording higher revenues and lower profits.
Revenue from Major Products(Reference: Quarterly Report, Supplementary Data, P.10)
Electronics-Related Products
 The Company recorded ¥33 billion in revenues for electronics-related products(semiconductors, LCD-related products, glass substrates for hard disk drives, etc.). This
represents a ¥1.7 billion decrease (4.8% decrease) compared to the same period in theprior fiscal year.
 In real terms, revenues increased ¥500 million (1.4% increase) when excluding the ¥2.1
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billion negative impact of foreign currency translation.
 Sales of glass substrates for hard disk drives grew 10% for the third quarter whenexcluding the impact of foreign currency translation. The Company’s share of the 2.5-inch
glass substrate market grew due to the restricted supply of NAND, resulting in year-onyear growth for these products.
 Revenues for mask blanks for semiconductors continued to grow at a strong pace, withdouble-digit percentage growth compared to the prior year and growth compared to theprior quarter. The Company also saw growth in revenues of EUV mask blanks
 Revenues of masks for LCDs and semiconductors continued to suffer from the reduced
production capacity at the Kumamoto plant in the wake of the Kumamoto earthquakes.
As a result, revenues for these products were down nearly 30% year on year.
Imaging-Related Products
 HOYA recorded ¥9.9 billion in revenues for imaging-related products, down ¥1.6 billion(13.8% decrease) year on year.
 In real terms, revenues were down ¥900 million (8.1% decrease) when excluding the¥700 million negative impact of foreign currency translation.
 While the digital camera market continues to experience contraction, we experienced
only a marginal decline in revenues for these products compared to the first half.
Healthcare-Related Products
 HOYA recorded ¥58.1 billion in revenues for healthcare-related products (eyeglass
lenses, contact lenses), down ¥1.2 billion (2% decrease) year on year.
 In real terms, revenues were up ¥2.6 billion (4.4% increase) when excluding the ¥3.8
billion negative impact of foreign currency translation. Given the high ratio of overseas
sales for eyeglass lenses, foreign currency translation has a significant impact onrevenues for this product.
 Sales of contact lenses continued to perform well, with year-on-year growth in the midsingle digits.
 Revenues for eyeglass lenses (on local currency basis) were only slightly higher in thesecond quarter year on year. However, we saw revenue growth in the low single digits
during the third quarter. In the Americas, we experienced close to double-digit percentage
growth, including the impact of our acquisition in that region. We saw stable revenue
growth for the period in Europe. While we experienced negative trends in Asia for a shortperiod, revenues grew for the third quarter.
Medical-Related Products
 HOYA recorded ¥20.6 billion in revenues for medical-related products (endoscopes,
intraocular lenses, etc.), down ¥400 million (2% decrease) year on year.
 In real terms, segment revenues were up ¥1.4 billion (6.7% increase) when excluding the¥1.8 billion negative impact of foreign currency translation.
 Performance of intraocular lenses continues to be favorable, with revenue percentage
growth in the high teens on a local currency basis. Sales in both Japan and overseas
have shown strong growth.
 Endoscope performance has been stable overall, with revenue percentage growth in the
low single digits on a local currency basis. Performance in America is rebounding from a3low point.
Cash Flows Included in cash from investing activities is ¥6.4 billion in outlays for payments forpurchase of subsidiary. This outlay was related to our acquisition of a medical equipment
company in the United States. The company in question develops equipment that is usedwith endoscopes to treat esophagus conditions. While revenues are extremely small atpresent, we plan to sell these products with endoscopes in the future. HOYA paid ¥6.4
billion in connection with this acquisition during the period.
 Also included in cash from investing activities is ¥6.2 billion in payments for business
transfer. This payment is related to the acquisition of a prescription protective eyewearbusiness in the United States.
(Reference: Quarterly Report, Supplementary Data, P.6)
Balance Sheets Overall, balances were higher, mainly due to the weakness of the yen against othercurrencies between the end of September and the end of December.
 Of the ¥6.3 billion increase in other current assets, ¥6.2 billion was related to theacquisition of a prescription protective eyewear business. This acquisition closed in
January. As of December, the cash used for the acquisition was positioned in an accountat a financial institution, shown in our accounting records as other current assets.
 Related to the acquisition of a medical equipment company, we recorded two separate
amounts for goodwill (¥3.8 billion) and intangible assets (¥9 billion). Further, HOYA
recognized ¥3.5 billion in deferred tax assets related to this acquisition. The final
acquisition price for this company consists of the ¥6.4 billion paid and a planned ¥3.4
billion in an expected future milestone progress payment. We project the combination ofthese two amounts to be the real acquisition cost for this company.
(Reference: Quarterly Report, Supplementary Data, P.4,5)
Earnings Forecasts
 For the fiscal year, HOYA forecasts revenue of ¥473 billion, profit before tax of ¥111
billion, and profit of ¥87 billion.
 These forecasts are based on a projected exchange rate of JPY110 to the US dollar
and JPY 120 to the euro.
 These forecasts reflect the holiday in Vietnam and other seasonality in our Information
Technology segment, as well as an expected slight decline in performance for the fourth
quarter as compared to the third quarter. We forecast the same levels of profitability forthe fourth quarter this fiscal year as last fiscal year.
[Overview of Operations in the IT Segment by Mr. Eiichiro Ikeda, COO]
Information Technology Segment
 Revenues in the Information Technology Segment were relatively flat, declining 1%
year on year. Operating profits were down 3.6% for the same period.
By business sector, revenues fell for photomasks and imaging-related products, butthese declines were offset by growth in mask blanks and hard disk drive (HDD)
substrates.
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Although performance has been moving in the same direction since the first half,revenue and profit decline percentages were narrower than the second quarter, whenboth fell by double digits.
More specifically, revenue from photomasks fell 30% year on year. Production
challenges at Kumamoto accounted 20% of this decline, while other factors accounted
for the remaining 10%.
The digital camera market continues to shrink, which has had a negative impact on
the Company' imaging revenue.
On the other hand, mask blank sales increased sharply overall year on year. Sales of
EUV mask blanks have been strong since the second quarter. Sales of HDD
substrates were also up significantly year on year. This increase was due to several
market factors, including HOYA's now-100% share of the glass substrate market and ashortage of NAND for solid-state drive applications.
Sales of information communication products overall were flat year on year. Mask
blanks and hard disk drive substrates compensated up for the drop in photomasks andimaging-related products.

Mask Blanks for Semiconductors
 Revenue from mask blanks for semiconductors rose by more than 10% year on year.
Excluding the impact of foreign exchange rates, revenue growth rate was in the midteens. Profitability also improved over the period.
 Our semiconductor manufacturer customers continue to develop cutting-edge
products, and HOYA has been able to capture this development-related demand.
Products for cutting-edge applications account for an increasing share of sales,
boosting revenues and profitability. We understand that working to improve our
product mix will be important to our future business.
 We continue to expect semiconductor manufacturers to use multi-layer technology for
7nm and thinner applications in 2018 and beyond. This will have a positive impact on
our leading-edge offerings, particularly for EUV-related products.
Development demand is gradually rising as a preliminary indication for mass
production. We are capturing this demand, leading to higher revenues both year on
year and compared to the prior quarter.
 We believe that mask blanks for cutting-edge products and EUV products will continue
to drive demand for mask blanks as a whole, driving earnings.
Photomasks for Large LCDs
 Photomask revenues fell 30% year on year. A downturn in production volume at thedamaged Kumamoto Plant was responsible for 20% of this decline. However, theimpact of these production issues have remained consistent in scale. In addition,
panel manufacturers placed higher priority on manufacturing throughout the third
quarter. The resulting decrease in demand for masks for development purposes
accounted for approximately 10% of the remaining decline in revenues.
 As we head into the next fiscal year, the installation of new mask writers and therepair of damaged equipment at the Kumamoto Plant should help improve production
capacity. We expect to get production back up to pre-earthquake levels sometimearound the middle of the next fiscal year.
Glass Substrates for HDDs
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



Revenue was flat year on year. Excluding the impact of foreign exchange shows thatboth sales volume and revenues increased significantly, by nearly 10%. Profit ratios
remained steady throughout the quarter.
Among the factors contributing to gains, HOYA gained a 100% share of the glass
substrate market after the exit of our competitor. Additionally, shortages of NAND havemeant insufficient availabilities of solid-state drives. As a result, hard disk drives arebeing used.
We expect these conditions to last through the first half of fiscal 2017 or perhaps deep
into calendar year 2017.
The number of notebook PCs manufactured will decline. At the same time, hard disk
drives will be replaced by solid-state drives in a number of applications. These factors
will combine to further contract the market for 2.5-inch substrates over the medium
and long term.
We do not project a significant decrease in performance for related products until acertain point in fiscal 2017. In light of what may follow, it is important that we push thetransition from aluminum substrates to our glass substrate, as we have been saying
for some time. Presently, we are working with hard disk drive manufacturers todevelop 3.5-inch glass substrates.

Imaging-Related Products
 Revenue decreased in excess of 10% year on year. Excluding the impact of foreignexchange, the revenue decline was in the upper single digits.
 This is still a smaller decline than the 20% year-on-year decrease we experienced in
the second quarter.
 One factor behind the third-quarter decline was our withdrawal from the pickup lensbusiness this year. While this withdrawal accounted for several percentage points of
the revenue decline, the contraction of digital camera-related revenues was the mostprominent factor. On the other hand, the rate of decline has been slowing gradually
since the second quarter.
 Revenue is rising for other applications, but this growth does not yet compensate fully
for the loss of digital camera product revenues. We do believe, however, that growthof sales for new applications during fiscal 2017 will make up for a considerable part ofthe downturn in digital camera product revenues.
 We will improvement profitability by optimizing our business structure and cutting fixed
costs.
[Life Care Segment Earnings Overview from Mr. Hiroshi Suzuki, CEO]
Eyeglass Lenses
 We noted no major change in trends related to eyeglass lenses. When excluding theimpact of foreign exchange, the revenue growth rate in Europe was in the low single
digits, while growth in the Americas was nearly 10%. Revenues in Japan declined in
the low single digits. In Asia, revenue transitioned from stagnation to growth,
contributing to company-wide improvements for the period.

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Contact Lenses
 The contact lens revenue growth rate was in the mid-single digits for the third quarter.
Sales were weak in December, which is normally a business time for contact lenses.
Accordingly, we will keep a close eye on revenue trends. Most recently, January
revenue performance has progressed as anticipated. While new store revenues is
growing, certain existing stores are underperforming projections. Our goal is to open
Eyecity locations in a way to avoid cannibalization between stores. We need to
conduct an analysis as to whether this is actually the case.
Endoscopes
 Endoscope revenues have ceased to fall in America, and revenues have shifted topositive growth overall. Revenues are growing in Europe as well, and we anticipate
favorable trends overall. We have plans to release several new products to themarket, leading us to expect positive developments over the next year. In America, wehave seen an increase in group purchases among endoscope clients, represented byIntegrated Delivery Networks and Group Purchasing Organizations. Many of thesegroups require dual sourcing, which is a chance for us to gain entry as long as we
provide proper products and services. We are also seeing an increasing trend toward
buyers and other business-oriented individuals making the final purchase decision.
While these changes have been occurring over the past two or three years, they havebecome more prominent of late. We see this as a positive development for us in themarket. We have an optimistic view of our businesses in America.
Intraocular Lenses (IOLs)
 Although intraocular lens performance has been strong, we have no moremanufacturing capacity at present. We expect to launch a new plant and have it
producing a certain volume in the second half of 2017. Until then, we will operate
without more manufacturing capacity. While the IOL revenue growth rate has been in
the double digits year on year, our quarter-on-quarter growth rate will be constrained
until the new plant is up and running.
[Company Overview from Mr. Hiroshi Suzuki, CEO]



Excluding the impact of the earthquakes and foreign exchange, HOYA reported a third
quarter revenue growth rate in the mid-single digits. While we have secured stable
growth, we believe we still have issues related to revenue. Repair costs and othertemporary factors affected performance. However, we understand that there are stillother management issues to resolve. While we projected a contraction in the digital
camera market, we did not anticipate the complete scale and speed of the market
deterioration. As such, the organizational size of our optics business is outsizedcompared to our revenues. Our eyeglass lens business has seen a decline in
efficiencies, mainly due to advanced investments to grow revenues. While advanced
investment is necessary, we must move quickly to connect this investment to revenue
growth.
The market for digital cameras continues to contract. Even so, we do not anticipate amajor downturn in the Information Technology field as a whole. We believe Life Carewill continue to grow at least at the current single-digit pace or greater. The main issue7

we see at present is creating a structure that matches profits gains with revenue
growth.
[Q&A Highlights]
Q1: New plants for 10.5G and larger LCD masks are being planned. Are you considering
responding to this demand?
A1: We have no plans for major investments at this time. (Ikeda, COO)
Q2: What is the outlook for EUV?
A2: Our outlook remains as we have stated before. Presently, sales of mask blanks for
EUV represent about 10% of total mask blank revenues. We project fiscal 2018 revenues
to be about twice fiscal 2016 revenues. (Ikeda, COO)
Q3: Referring to the management issues you mentioned earlier. We understand what you
mean by greater costs in the optics business and concerns in the contact lens business
about Eyecity stores are cannibalizing each other. Should we infer that there are othermanagement issues?
A3: Eyeglass lens revenues are taking more time to catch up to advanced investment than
we anticipated. Here, we believe we need to find some more efficiencies. (Suzuki, CEO)Q4: You mentioned management issues. Have you changed M&A priorities compared tothe past?
A4: We must execute M&A strategically. Since there is another party involved, the timing
depends on that other party. At present, we believe it is important to integrate those entities
into our organization. (Suzuki, CEO)Q5: We understand that you are working cooperatively with customers to enter the 3.5inch market for glass substrates for hard disk drives. Can you describe the progress, yourassessment, and the timing of when these products will contribute to revenues?
A5: In the short term, we expect that NAND shortages will result in revenues at the current
level throughout calendar 2017. After that, substrates for near-line servers will transition to
glass. However, the speed of that transition will be gradual, and is not likely to offset thecontraction of the 2.5-inch market. Accordingly, we anticipate that revenue levels may
decline by a gradual amount.
Although the transition to glass may be gradual, demand for 3.5-inch near-line servers willgrow by a significant margin. Accordingly, we expect to see revenue at nearly the samelevels as the current 2.5-inch product.
Over the long term, the HDD recording method will transition to HAMR, requiring an
improvement in recording density. In this case, glass substrates will be inevitable. We are
not overly pessimistic about this business in the short, medium, or long term, and we donot see developments here as a risk. (Suzuki, CEO)8

Q7: With the integration of Essilor and Luxottica, have you changed your view of
Performance Optics?
A7: The goal of our acquisition of Performance Optics was to develop chain customers in
America. We do not believe that the integration of these two companies will have any
impact on that. Leveraging Performance Optics, we will work to raise awareness of ourcompany among American chain customers as a trusted supplier. For this reason as well,
we are aware of the importance of integrating Performance Optics fully into ourorganization and executing on the necessary measures. (Suzuki, CEO)Q8: We understand that Performance Optics has never been an overly profitablecompany. What measures will you take in the course of integration to increase
profitability?
A8: Although costs related to temporary factors have been incurred, the profitability of
Performance Optics compares favorably with our own. We plan to integrate in a way that
leads to manufacturing efficiencies. There may be a question of timing, but we believe thatprofitability will improve. (Suzuki, CEO)End
Certain statements contained in this report constitute forward-looking statements regarding
the Company’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
made and 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 andthe industry environment may differ materially from those expressed by the forwardlooking 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 takeresponsibility for the outcome of investments.

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