January 10, 2024
FAQs Related to Q2 FY23 Results
OverallQ

The cash balance on the balance sheet is growing. Please explain how you intend
to use the cash in the future, including shareholder returns.

AWe place the highest priority on investments that contribute to long-term growth,and in addition to internal investments, we are actively seeking M&A opportunities.
Against this background, we have a large amount of cash on hand. On the otherhand, there is no change in our policy of returning excess cash flow to shareholders.

QYou sold your IT system business in July 2023. Will you continue to reorganize yourbusiness portfolio in the future?

AWe are focusing on three business areas: Ophthalmology, MedTech, andInformation Technology. We will consider products and services that have little
relevance or synergy with these business areas, or businesses in which it will bedifficult to demonstrate competitive advantage in the long term.

QDo you plan to establish Scienced Based Targets (SBT) for CO2 emissions?

A

Currently, our CO2 emission reduction targets cover Scope 1 and Scope 2 (see herefor details). We will proceed with verification and consideration of SBT setting oncea certain level of data has been collected and disclosed.

Eyeglass Lenses
Q

Sales of MiYOSMART (lenses for myopia management) have been strong, especiallyin the Chinese market, but will you be expanding to other regions?

AWe are already selling our products in more than 30 countries, including Europeanand Asian countries. Although sales in the Chinese market remain significant, sales
in some European countries are growing. On the other hand, among the major
markets, MiYOSMART has not been qualified in the U.S. and Japan yet. We willcontinue to work on the necessary procedures for this.

Contact Lenses
Q

How are sales of private brand (PB) products? Do you have any plans to expandoverseas?

A

Sales are growing steadily, accounting for more than 20% of daily lens sales. We
are considering strategies with a view to expanding overseas as a manufacturer inthe future.
BlanksQ

You mentioned that sales recovered by double digits from Q1 to Q2. Is it safe tosay the inventory adjustment is over? Do you assume that growth will continue inthe future QoQ?

A

In EUV blanks, we recognize that inventory adjustment at one major customer has
been completed. Since some customers are still adjusting inventories, we expect a
gradual recovery from Q3 onward, rather than the large recovery seen from Q1 toQ2.

Q

Is there any change in the competitive environment for EUV blanks?

A

We have not seen any significant changes in the current situation, but we willcontinue to monitor the market closely, including new entrants.

HDD Substrates
QSales continued to decline in Q2. However, we hear that demand from data centersis gradually recovering. When do you expect demand for our HDD substrates torecover?

AThe outlook remains uncertain due to the perception that investment in storage isbeing restrained by continued investment in AI servers by hyperscalers. Given theabove, we assume that the level of demand for HDD substrates in Q2 will continue
during the fiscal year.

QOur major customer has announced the launch of a product incorporating nextgeneration HAMR (Heat-assisted Magnetic Recording) technology.

AWe would like to ask you to check the announcements of HDD manufacturers
regarding the status of final products (HDDs). However, since glass substrates areessential for the commercialization of this technology, we expect that the range ofproducts and HDD manufacturers that use glass substrates will expand.
ENDForward-looking Statement
HOYA may make comments and disclose information which include forward-looking
statements with respect to HOYA´s plans and future performance. All statements,
other than statements of historical fact, are statements that could be deemed
forward-looking statements and are based on management’s assumptions and beliefs
in light of the information available when such statements were prepared, including
exchange and interest rates, international situations, market trends and economic
conditions, competition, production capacity, estimates of revenues, operating
margins, capital expenditures, cash, other financial metrics, expected legal,
arbitration, political, regulatory, clinical or research and development capabilities,
results or practices, customer patterns or practices, reimbursement activities andoutcomes, effects of pandemics or other widespread health problems such as
COVID19, and other such estimates and results. HOYA does not guarantee theaccuracy or completeness of such information and HOYA does not undertake any
obligation to update any forward-looking statements as a result of new information,
future events or otherwise.
Contact: h-ir@hoya.com