June 26, 2024
FAQs Related to Q4 FY23 Results
OverallQ

What is the impact of the IT system incident on FY24 financials?

AIT systems related to domestic and overseas production and order placement were suspended insome of our businesses. The main impact is that in the eyeglass lens business, the sales growthrate for FY24, which was expected to be in the mid-single digits, is now expected to be flat year onyear. As for the impact on profit, one-time expenses such as forensic investigation and IT system
restoration are expected to be around 1.5 billion yen. In addition, in eyeglass lenses and otherproducts, we will consider investments to secure future sales growth while monitoring the recovery
in demand. On a consolidated group basis, HDD substrates and blanks, which were affected byinventory adjustments in the previous fiscal year, are expected to recover, leading to higher salesand profit.

Q

Will there be an increase in expenses to strengthen IT security?

A

We will increase expenses to further strengthen group-wide IT security by introducing new security
tools and other measures, but we will control expenses so that they do not affect the profit margin.

QWill there be any impact from the economic downturn in China and the anti-corruption campaign?

AThe eyeglass lens business, including MiYOSMART (myopia management lens for children), which
had been performing well, was affected by the economic recession in China. In addition, the anticorruption campaign affected mainly the endoscope business and the volume-based procurement
policy affected mainly the intraocular lens business, and we will continue to closely monitor futuretrends.

Eyeglass Lenses
Q

Will there be any loss of market share due to the IT system incident? Also, can we expect a high growth rate in
the next fiscal year and beyond?

AAlthough the IT system incident caused a temporary loss of market share, we will use sales
promotion expenses as appropriate while monitoring the return of market share to secure sales in
the future and link this to high growth rates in the next fiscal year and beyond.

Contact Lenses
Q

How are sales of private brand (PB) products doing?

AIn February 2024, we launched hoyaONE LUMINOUS, our fourth private brand product, and theratio of private brand products accounts for nearly 30% of daily lens sales.

BlanksQYou said that demand for EUV blanks has been increasing rapidly since April. What is the background of thestrong demand?

AWe believe that this is due to the completion of customers' inventory adjustment at the end of theprevious fiscal year and the increase in development activities for semiconductors, including thosefor generative AI.

QDo you think you are losing market share to your competitors in the EUV blanks market? How do you view thecompetitive environment?

AWith overall demand increasing significantly since April, we do not see any significant change in thecompetitive relationship, as none of our customers has reduced the volume of orders they place.
We also recognize that we are ahead of our competitors in the qualification process for cuttingedge developments. As we have explained to investors in the past, we expect our competitors toenter the market as second suppliers in the medium to long term, and we are designing our growthstrategy based on this recognition of such competitive environment.

Q

When do you expect to ship phase-shift masks for EUV and mask blanks for High-NA?

AWe expect theintroduction of phase-shift masks in the 2nⅿ generation, and full-scale shipments
are not expected until the next fiscal year or later. On the other hand, we are still in the process ofproposing product specifications for mask blanks for High-NA to our customers, so we have not yet
determined the timing of shipment.

HDD Substrates
Q

Demand for hard disk drives is strong. Also, when do you expect the Laos plant to resume operations?

AIn FY24, demand for 3.5-inch HDDs is expected to be on par with that of FY21, when demand
peaked. We will determine the sustainability of this trend by communicating with customers andcomprehensively analyzing the background to the surge in demand and the balance between actual
demand and restocking. In light of the current demand forecast, we are considering restarting theLaos plant by Q4 of this year.
EndForward-looking statements
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and beliefs in light of the information available when such statements were prepared, including exchange andinterest 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 orpractices, customer patterns or practices, reimbursement activities and outcomes, effects of pandemics orother widespread health problems such as COVID19, and other such estimates and results. HOYA does notguarantee the accuracy or completeness of such information and HOYA does not undertake any obligation toupdate any forward-looking statements as a result of new information, future events or otherwise.
Contact:h-ir@hoya.com