Briefing Summary of the Analyst/Investor Meetingfor the 1st Quarter (April to June2016) Financial Results
Ending Mar 31, 2017
Tokyo, July 29, 2016

Note: This memo is posted for reference purposes for the convenience of those who wereunable to attend the meeting and is not a verbatim record of all statements made at themeeting. Please be aware that it has been compiled in a concise form at the judgment of theCompany’s IR Group. Please also refer to the cautionary notes on the final page.
Overview of Financial Results by Mr. Ryo Hirooka, CFO
Quarterly Consolidated Statement of Comprehensive Income for All Businesses
Revenue and Profit for the Quarter Revenues were ¥115.2 billion, ¥11.1 billion, or 8.8%, below the same period of theprevious year.
 Profit before tax was ¥22.3 billion, ¥8.6 billion, or 27.9%, below the same period of theprevious year.
 Profit for the quarter was ¥18.0 billion, ¥5.7 billion, or 24.0% below the same period of
the previous year.
(Reference: Quarterly Report, Supplementary Data, Quarterly Consolidated Statementof Comprehensive Income, page 7)
Impact of Translation from Foreign Currencies
 For the effects of foreign currencies when translating the business performance ofconsolidated overseas subsidiaries into yen, the yen in the first quarter was stronger
against all major currencies, including the U.S. dollar, euro, and Thai baht, compared tothe same period of the previous year.
 The impact of foreign currency translation on revenues was a reduction of ¥10.1 billion.
If this currency translation effect is excluded, the real increase in sales was ¥1.0 billion,
or -0.8%.
 Turning to the effects of foreign currency on quarterly profit before tax, foreign currencytranslation decreased profit before tax by ¥2.2 billion, effectively a ¥6.4 billion, or 20.7%,
decrease in profit.
(Reference: Quarterly Report, Supplementary Data, page 7, Notes 1 and 2)
Reasons for Differences between Profit from Ordinary Operations and Profit before Tax(Adjustment Items)
 Regarding foreign exchange (gain)/loss (exchange differences on translation of assets
in foreign currencies), there was a ¥3.4 billion foreign exchange loss during the firstquarter. There was a ¥2.0 billion gain during the same period of the previous year, making
foreign exchange (gain)/loss contribute ¥5.4 billion yen to the reduction of income year
on year.
 In addition, losses related to the Kumamoto earthquake totaled ¥1.2 billion in the firstquarter.
 Foreign exchange loss and the loss related to the Kumamoto earthquake combined tototal a ¥6.6 billion reduction in earnings. Including other effects, operating activities
effectively contributed to a ¥6.3 billion reduction in earnings.
1 Approximately ¥6.3 billion out of the “¥6.4 billion reduction in earnings” that is the change
in profit before tax excluding foreign currency translation is due to foreign exchange
losses and the effect of the Kumamoto earthquake as decrease factors, approximately¥0.1 billion is effectively the result of an actual decrease, and both sales and income
were generally flat on an effective basis.
Results by Business Segment
Explanation by business segment (Reference: Quarterly Report, Supplementary Data, page 9)
Information Technology
 Revenues in the Information Technology segment were ¥37.8 billion, a decrease of ¥7.7
billion, or 16.9%, compared with the same period of the previous year.
 Foreign currency translation decreased revenues by ¥3.3 billion. After excluding thiseffect, segment revenues in real terms declined ¥4.4 billion, or 9.7%.
 Segment profit (profit before tax) was ¥11.2 billion, ¥5.0 billion, or 31.0% lower than thesame period of the previous year.
 Impact of foreign currency translation in the segment profit was negatively affected by¥1.0 billion. After excluding this effect, segment profit in real terms decreased ¥4.0 billion,or 24.9%.
 As explained earlier, expense items under operating activities as decrease factors
increased by approximately ¥6.3 billion year-on-year, but ¥2.5 billion yen of this was anincrease in the Information Technology Segment. A large portion of the ¥1.2 billion loss
related to the Kumamoto earthquake occurred in the Mask Division of the Information
Technology Segment.
Life Care Revenues in the Life Care segment were ¥76.3 billion, a decrease of ¥3.5 billion, or 4.3%.
 Foreign currency translation decreased revenues by ¥6.8 billion. After excluding thiseffect, segment revenues in real terms increased ¥3.4 billion, or 4.2%.
 Segment profit (profit before tax) was ¥14.2 billion, ¥0.3 billion, or 1.8% lower than in thesame period of the previous year.
 Foreign currency translation had a negative effect on segment profit by ¥1.3 billion. Afterexcluding this effect, segment profit in real terms increased ¥1.0 billion, or 6.9%.
 After excluding the effect of foreign currency translation, both revenues and income
increased in the Life Care Segment.
Revenue from Major ProductsElectronics Related Products
 Revenues in the electronics related products businesses (semiconductors, LCD-related
products, and glass substrates for HDDs) totaled ¥29.6 billion, ¥4.0 billion, or 11.8%,
lower than in the same period of the previous year.
 Foreign currency translation decreased revenues by ¥2.6 billion. After excluding thiseffect, revenues of this business decreased ¥1.4 billion, or 4.1%, from the same periodof the previous year.
 Revenues of mask blanks for semiconductors continued to perform well, increasing in
the high single digit year on year after excluding the effect of foreign currency translation.
 Revenue from HDD substrates decreased in the mid-single digits after excluding the2effect of foreign currency translation, which was the main cause of decreased revenues
in electronics related products.
 Revenues from photomasks for LCDs decreased in the mid-single digits after excluding
the effect of foreign currency translation. The Kumamoto earthquake had the effect of
reducing revenues by around 10%, but with the start of operation of high precision
machinery in overseas factories in the first quarter, we are making an effort to cover the
shortfall in production across overseas factories. The portion not covered is decrease inrevenues.
Imaging-Related Products
 Revenues of image-related products were ¥8.3 billion, ¥3.7 billion, or 31.1% lower than
the same period of the previous year.
 Foreign currency translation decreased revenues by ¥0.7 billion. After excluding thiseffect, revenues of this business were down ¥3.0 billion, or 25.4%, year on year.
 Camera production was affected by the Kumamoto earthquake, and revenues of opticallenses also decreased. Around 10% out of the 25.4% reduction in revenue was due tothe earthquake, and the remainder was due to a reduction in demand for cameras andaction cameras.
Healthcare Related Products
 Revenues from healthcare-related products (eyeglass lenses and contact lenses) were¥57.3 billion, ¥2.6 billion, or 4.3%, lower than in the same period of the previous year.
 Foreign currency translation decreased sales by ¥4.8 billion. After excluding this effect,
revenues of this business rose by ¥2.3 billion, or 3.8%. Because overseas sales accountfor a large proportion of sales of eyeglass lenses, the business is susceptible to the effectof foreign currency translation.
 Contact lenses continued to perform well, with growth in the high single digits comparedto the same period of the previous year. We opened 24 new stores last fiscal year, andexpect to open even more this fiscal year.
 Revenues of eyeglass lenses grew in the mid-single digits after excluding the effect offoreign currency translation. Growth has outperformed the market in Europe and theUnited States. Revenues decreased on a value basis in Japan.
Medical Related Products
 Revenues from medical-related products (endoscopes and intraocular lenses, etc.) were¥19.0 billion, which was ¥0.9 billion, or 4.4%, lower than in the same period of theprevious year.
 Foreign currency translation decreased sales by ¥2.0 billion. After excluding this effect,
revenues of this business rose by ¥1.1 billion, or 5.4%.
 Intraocular lenses continue to perform well, showing growth exceeding 20% in all regions.
 Revenues of endoscope were generally flat on a local currency basis. Growth wasaround the same as the market in Europe, and growth in Asia was in the double digits
partially due to active investment. However, revenues decreased in the United States.
Impact of the Kumamoto Earthquake The ¥1.2 billion loss related to the Kumamoto earthquake in the first quarter explained
earlier does not include opportunity loss, but includes expenses directly recorded as P/Lsuch as fixed asset retirement, disposal of assets and restructuring expenses. Over theentire year, we expect expenses related to the earthquake to total around ¥3.0 billion.
Expenses totaling several hundred million yen will arise in the second quarter, and the

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repair expenses for the two damaged mask writers are expected to arise in the latter halfof the fiscal year.
From the perspective of opportunity loss, the impact of the earthquake on the masks anddevices for liquid-crystal displays and optical business had the effect of reducing overall
revenues by around 2% year on year.
Although there will be impact on the optical business in the second quarter as well, but
we believe that things will gradually return to normal from the second quarter, while theeffect on masks and devices for liquid-crystal displays will continue throughout the fiscal
year. We estimate the effect of opportunity loss due to the earthquake on revenues overthe entire year leads to a decrease of 1.2 to 1.3% year on year.

Cash Flows In financing activities ¥17.8 billion was used to pay year-end dividends, and ¥5.0 billion
was used to acquire treasury stock as resolved in February. As a result, the balance of
cash flows used in financing activities totaled ¥23.2 billion.
 The “effects of exchange rate changes on the balance of cash and cash equivalents inforeign currencies” amounted to ¥23.6 billion yen, however, because HOYA holds muchof its cash and deposits in foreign currencies, this seems to be a smaller amount whenconverted into yen. On the balance sheet, cash and deposits decreased to ¥255.3 billion.
(Reference: Quarterly Report, Supplementary Data, pages 4 and 6)
Forecast for the First Half We are forecasting revenues of ¥230.0 billion, profit before tax of ¥48.0 billion, andprofit for the term of ¥38.5 billion. (Assumed rate: USD=JPY105, EUR=JPY115)
Release 2 releases were published.
 A resolution was passed by the Board of Directors today to retire 7,154,000 shares oftreasury stock acquired in April after a resolution in February.
 Today, the Board of Directors resolved to acquire treasury stock valued at up to ¥30.0
billion (8.3 million shares). (Acquisition period: August 1 to October 27)[Overview of Operations in the IT Segment by Mr. Eiichiro Ikeda, COO]

Sales in the Information Technology Segment as a whole were down 16.9% year on year.
Excluding the impact of foreign exchange rates, sales declined by 9.7% year on year, withelectronics related products down 4.1% and imaging related products down 25.4%.
Factors contributing to the decrease in imaging related products included a decrease of 9
to 10% due to reduced production of cameras resulting from reduced production of image
sensors, a decrease of 5 to 6% due to ceasing the business of pickup lenses for opticaldrives this year (this is expected to continue to have an impact until the fourth quarter ofthis fiscal year), and the remaining 10% decline was a reduction from normal business.
Profit in the Information Technology Segment as a whole decreased with the decline insales, but the profit ratio from ordinary operating activities increased by 0.4 percentage
points year on year, indicating a slight improvement in profitability. As we havecommunicated in the past, we are making an effort to maintain profitability despite theenvironment of decreased revenues and profits.

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Mask Blanks for Semiconductors
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Revenues of mask blanks for semiconductors increased by low-single digit year on year.
Excluding the impact of foreign exchange rates, revenues increased by high single digits
year on year. Profitability improved.
According to external data, the semiconductor market as a whole recently continues toshow negative growth, but HOYA’s products are not semiconductor components and areused not only in the mass production phase of semiconductors but also in thedevelopment phase. Semiconductor manufacturing companies continue to actively
develop cutting-edge products, resulting in increased volume of our product in this area,
and consequently increased revenues and profits.
An increase of sales of cutting edge products has led to an improvement in our productmix and also profitability.
We believe this trend will continue from the second quarter of FY2016.
Of these cutting edge products, semiconductor manufacturers externally disclose theapplication of EUV technology in some layers of production of the 5-7nm products from2018 to 2020. HOYA already supplies EUV products to semiconductor manufacturers.
Although they do not account for a large portion of sales, looking at the performance ofblanks for EUV alone, they have increased year on year and quarter on quarter, and are
beginning to contribute to the improvement of profitability.

Photomasks for Large LCDs
 Excluding the impact of foreign exchange rates, revenues decreased by mid-single digits
year on year.
 One factor causing the reduction of revenues is the impact of the decrease in production
volume as a result of the Kumamoto Plant being affected by the earthquake, but we havemaintained increased revenues when this factor is excluded.
 Fire damage to production facilities in the Kumamoto Plant was greater than initiallyforecast. We were initially considering restoration of the plant, but reconsidered
optimization of our entire production organization including Taiwan and South Korea, anddecided to close the Kumamoto Plant.
 Development activities will continue in Kumamoto, and we intend to reopen the facility thisfiscal year as a new development center for large liquid crystal display photomasks.
 We will make an effort to cover the production capacity of the Kumamoto Plant by utilizing
the new mask writers that we had been planning to introduce in Kumamoto and Taiwan
since before the earthquake.
Glass Substrates for Hard Disk Drives (HDDs)

Revenues of HDD glass substrates decreased by 15%. Excluding the impact of foreignexchange rates, revenues decreased by mid-single digits. Profitability remained steady.
We have been able to maintain profitability in an environment where volume is decreasing.
HOYA’s products are substrates for 2.5” HDDs, and revenues of these continued todecrease year on year due to the decline in production of notebook PCs, which are
currently the main application for these, and the rapid spread of solid state drives (SSDs).
The replacement of HDDs with SSDs is also taking place in the area of high-performanceenterprise servers. There are several areas in servers, but our HDD substrates are used in
the area of performance enterprise servers requiring high performance, and a certain
degree of replacement with SSDs has been one of the factors leading to reduced
revenues.

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The only area that is increasing is drives for game consoles.
It is believed that this trend will continue for some time, but aluminum substrates are used
for some products in the 2.5” HDD market, and we make an effort to replace these with
our glass substrates. We would like to ensure that the reduction in HOYA’s performance isless than the reduction of the market for substrates of 2.5’’ HDDs.
In addition, aluminum substrates are currently used in near-line server drives that are only
growing segment of HDDs, and we are conducting negotiations to replace these with our
glass substrates.
We have the impression that HAMR technology will be applied by companies
manufacturing HDDs some time in the future. HAMR technology was originally envisaged
to be used in drives for PCs with one drive, but we wonder if there are now no good
applications for using HAMR as SSDs replace HDDs as PC drives.

Imaging-Related Products
 Excluding the impact of foreign exchange rates, revenues decreased by more than 20%
year on year.
 Of this decrease, a reduction in actual business accounted for around 10%. The digital
camera market continues to contract. The decrease in demand for compact digital
cameras was particularly pronounced due to the impact of the Kumamoto earthquake. We
do not believe that demand will rebound and foresee that it will continue to decrease in the
future.
 To regain ground for the contraction in demand, we are promoting sales of products for
new applications such as surveillance cameras and automobile-mounted cameras. Sales
for new applications are actually increasing, but they have not reached the point where
they are able to cover the decrease in revenues from products for digital cameras.
 We believe that growth of products for new applications will be able to cover the reduction
in revenues from products for digital cameras when the decrease in products for digital
cameras progresses a little further.
 We believe that determining how to promote sales of products for new applications is an
important issue at present.

[Overview of Operations in the Life Care Segment by Hiroshi Suzuki, CEO]
Eyeglass Lenses
 Overall, revenues increased. When foreign exchange is excluded, revenues grew around
10 percent in the United States and in the mid-single digits in Europe. Although it has been
an ongoing trend, revenues in Japan decreased in the low single digits due to thedeflationary trend of unit prices. Overall, growth was in the mid-single digits. The problem isAsia, and there are problems in the internal structure in China, which are being addressed.
Contact Lenses
 Revenues grew in the high single digits. Revenues in existing stores increased slightly, andthe sales of 24 new stores opened last year were added to these.
 We believe that we can maintain this growth trend for some time. We also plan to open 30
stores this year. The actual number of stores may be fewer than the planned number, but
we believe we will be able to open around the same number as in the previous fiscal year.

6Endoscopes Overall, performance remained unchanged excluding foreign exchange. Growth was around
10 percent in Asia and mid-single digits in Europe. The United States is dragging down
overall results. Performance in the United States is expected to recover at the start of nextyear, but we believe it will begin to gradually improve from the second half of this year. We
anticipate our product lineup to be complete and obstacles to sales activities to be removed
from around the second half of the year.
 We have overcome the worst part and believe that the business will make a positive
contribution in the future.
Intraocular Lenses (IOLs)
 This business is performing extremely well and growth exceeds 20 percent.
 New products are performing well. Cataract surgery is that inserting an intraocular lensmade of plastic into the eye. However, even if the lens material is biocompatible, adverse
effect such as becoming clouded due to the attachment of protein over time, or moistureentering the plastic and causing bubbles generally occur after lenses are inserted. The
material used in this new product is expected to have the effect of suppress suchphenomena occurring after surgery. In real terms, this is yet to make an explosive
contribution to sales, and is currently in the stage in accumulating clinical results. We believethat medical products gain trust as they accumulate clinical results over a period of two to
three years after release on the market, and that this product will become more competitive
over time. We anticipate that it will be a product to look forward to. We still have a small
share in the intraocular lens market, but expect the business to expand to a certain size
after three or four years at the current rate of growth.
Artificial Bones and Metallic Implants
 HOYA’s medical related products include artificial bones and metallic implants business. It
is a small business in relation to the whole but it is growing well. Most of the players in thisarea in Japan are foreign manufacturers, and we have found that it is easy for us to be
accepted by customers because we are a domestic manufacturer. We would like to work
hard to grow this business.
 Listing each business in the Life Care Segment in order of profit ratio, the best is artificial
bones and metallic implants, followed by contact lenses, intraocular lenses (IOLs),
endoscopes and eyeglass lenses. The segment as a whole has a profit ratio from ordinary
operating activities of around 19 percent, but the eyeglass lenses business accounts forsuch a significant portion and is pushing the overall profit ratio down, while other businesses
have a higher profit ratio.
Capital Policy
 We returned a total of 165 billion yen to shareholders through dividends and repurchases of
the Company's own shares. Our policy of continuing returns will remain unchanged unless
we perform any major M&As. We have not established any strict rules or standards, but ourapproach is to use cash for M&A, and we will continue our policy of returning any amountexceeding this.

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[Questions and Answers Following the Briefing]
Q. How much positive impact do you think EUV will have on revenues in 2018?
A. EUV may be applied to mass production in 2018 for some layers, but we do not believe that
it will actually be applied to a substantial quantity in mass production. HOYA is currently
shipping for R&D applications and has a reasonable track record in terms of both volume andvalue. EUV is expected to increase in volume with an increase in research applications rather
than an increase in volume in the mass production phase. The volume is expected to be morethan double. We also believe that we can maintain high prices by supplying products withhigh specs. (Suzuki, CEO)Q. What is the outlook for HDDs? You mentioned that SSDs are also penetrating into servers,
and there are concerns that this trend will accelerate in the future. How much should we
expect this segment to shrink in the future?
A. We do not foresee the rate of decline to significantly accelerate from the current pace during
this fiscal year. HDDs are in decline as a whole, but there are applications such as game
consoles that will increase due to seasonal factors, and the number of substrates per HDD isincreasing slightly because the memory density of media is not increasing. It may seem that
numbers will fall extremely quickly based on an estimation using the number of PCs and theratio of PCs incorporating SSDs, but we do not believe the fall will be as pronounced as such
estimates suggest.
(Ikeda, COO)
Q. I think you are always looking for M&A opportunities, but due to the reduction in overall
valuations, there must be some deals that you had previously skipped which are now fallingwithin range of execution. Please describe the overall conditions. Also, have there been any
changes in the external environment causing changes in the businesses and segments
covered by M&A?
A. Although the valuation of small companies valued at 40 to 50 billion yen remains high,valuations in large companies seem to have peaked. The ophthalmology segment that has
been our main focus is still expensive by our standards, but some large deals are starting tobecome affordable. I think the eyeglass lenses segment can be summed up by whether or
not a deal can be made rather than the issue of valuation. The targets are clear, so we willcontinue to look for possibilities. (Suzuki, CEO)Q. What is the backdrop behind the strong performance of existing contact lens stores? Is themarket growing or are you taking market share from other companies?
A. The existing market is neither growing nor shrinking. I think demand for color contact lenses
is bolstering the market in these conditions. I think existing stores are performing well because
they have skillfully captured demand for color contact lenses.
(Suzuki, CEO)Q. HOYA invested in InnFocus but sold its stake within a year of the investment (due toacquisition by another company). Why didn’t HOYA make it into a subsidiary? What led to thesale?
A. We hold the excellent technology and products of InnFocus in high regard. We calculated
what return we would get if it was incorporated into our company as a business. We decided
to sell our stake because we determined that we could sell at a higher price than the return
discounted to present value. We hold their excellent technology and products in high regard8and expect the company that made the acquisition to commercialize them as a business.
(Suzuki, CEO)
Q. With regard to shareholder returns, you have stated that any amount exceeding that used for
M&A will be allocated to returns, but it could be anticipated that you may not be able to return
all free cash flow this fiscal year due to restrictions on the distributable amount of nonconsolidated basis? Will you make any adjustments to address this?
A. We will not change the capital policy itself. There are procedures for increasing the
distributable amount, and we may consider these if necessary. (Hirooka, CFO)
Q. The amount of investment in 3D NAND by memory manufacturers is expected to be quite
substantial. As all production lines will come on line, what impact do you foresee the increased
supply and falling prices of flash memory to have on the HDD substrate business in the
future?
A. I think various companies have their own approaches to 3D NAND, but I personally do notbelieve manufacturing cost will decrease due to 3D NAND. In fact, considering the amount of
capital investment, I think the manufacturing cost of 3D NAND will be higher than ordinary
NAND for some time. Investment in 3D NAND possibly lead to a fall in NAND flash prices due
to oversupply, but I do not think costs will decrease. The motivation for installing SSDs in both
PCs and servers is more due to performance than cost, so I do not believe there will be asudden swell in the ratio of PCs incorporating SSDs even if prices plummet. However, over along span, I think most PCs will eventually incorporate SSDs. (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 theCompany is involved. Forward-looking statements are based on the judgments of theCompany and corporate group obtained based on information obtainable at the time thestatements are made and they also contain risks and uncertainties. The Company does notguarantee the completeness or accuracy of the content. Consequently, you are advised torefrain from making investment judgments relying entirely on these forecasts. Actual
performance and the industry 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 takeresponsibility for the outcome of investments.

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