July 31st, 2023

Quarterly Report

1st Quarter : 3 months ended June 30, 2023

Consolidated (HOYA CORPORATION and Consolidated Subsidiaries)

Part .1

1st Quarter : from April 1 to June 30, 2023
  1. Quarterly Consolidated Financial Highlights : p.1
  2. Results of Operations : p.2
  3. Quarterly Consolidated Financial Statements
    1. Quarterly Consolidated Statement of Financial Position : p.4
    2. Quarterly Consolidated Statement of Cash Flows : p.6
    3. Quarterly Consolidated Statement of Comprehensive Income : p.7
    4. Segment Information : p.8
  5. Projected Results for the First Half (All Operations) : p.11
  6. ＜Reference＞Supplementary data for 1st Quarter : p.12

Notes:

  1. HOYA's fiscal year (FY) : from April 1 to March 31 of the following year.
  2. These financial statements are excerpt translation of Japanese "Kessan Tanshin "and have been prepared for the references only of foreign investors.

HOYA CORPORATION

This report is provided solely for the information of professional analysts 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 and therefore you should not place undue reliance on them.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that 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.

Part.1

July 31st, 2023

1. Quarterly Consolidated Financial Highlights

HOYA CORPORATION and Consolidated Subsidiaries

1. Performance for the three months ended June 30, 2022 and 2023 (All operations *Notes)

( The yen amounts shown therein are rounded off to the nearest million.)

Three months ended

Variance

(1)Revenue and Profit before tax

Jun. 30, 2022

Jun. 30, 2023

(%)

Revenue

180,179

182,288

1.2

Profit before tax

61,518

51,166

-16.8

Ratio of profit before tax(%)

34.1%

28.1%

Profit for the quarter

48,401

38,395

-20.7

Ratio of profit for the quarter(%)

26.9%

21.1%

Profit attributable to owners of the Company

48,358

38,215

-21.0

Ratio of profit attributable to owners of the Company(%)

26.8%

21.0%

Basic earnings per share (yen)

132.83

108.07

Diluted earnings per share (yen)

132.73

108.01

(2)Financial Position

As of

Mar. 31, 2023

Jun. 30, 2023

Total assets

1,028,326

1,094,924

Total equity

814,604

865,603

Equity attributable to owners of the Company

818,321

868,117

Ratio of assets attributable to owners of the Company

79.6%

79.3%

Assets attributable to owners of the Company per share (yen)

2,311.72

2,454.94

(3) Conditions of Cash Flows

Three months ended

Jun. 30, 2022

Jun. 30, 2023

Net cash generated from operating activities

47,364

55,396

Net cash used in investing activities

-7,454

-1,456

Free cash flow

39,910

53,939

Net cash provided by (used in ) financing activities

-71,248

-31,088

Cash and cash equivalents at end of period

420,166

455,470

2.Projected Results for the First Half (Six months ending September 30, 2023) for All Operations

Six months ended/ending

Variance

Sep. 30,2022

Sep. 30,2023

(%)

Revenue

364,291

365,000

0.2

Profit before tax

123,338

105,000

-14.9

Profit for the term

95,718

80,500

-15.9

Profit attributable to owners of the Company

95,459

80,500

-15.7

Profit for the term per share (Yen)

263.80

227.64

－

3.Other

Three months ended

Jun. 30, 2022

Jun. 30, 2023

Capital expenditure

7,937

9,183

R&D expenses

7,078

7,810

Notes:

"All operations" means here that the figures are including not only "Continuing operations" but also "Discontinued operations".

These forward-looking statements involve known and unknown risks, uncertainties and other factors that 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, or currency exchange rates.

-1-

2. Results of Operation

1) Qualitative Information on Quarterly Financial Results

Our operating results for the first quarter of the consolidated fiscal year under review (three months from April 1 to June 30, 2023) are as follows. The Information Technology Business was sluggish, but the Life Care Business was performing well, and as a result, revenue was maintained at the same level as the previous year.

(Millions of yen)

Three months ended

Variance

June 30, 2022

June 30, 2023

Revenue

180,179

182,288

1.2%

Profit before tax

61,518

51,166

-16.8%

Profit for the quarter

48,401

38,395

-20.7%

Ratio of profit for the quarter

34.1%

28.1%

-6.0pt

As there were no discontinued operations in both the first quarter and the same period of the consolidated fiscal year, all figures and rates of change display are solely from continuing operations.

Results by reportable segment are as follows. (Revenue for each segment is from external customers.) ① Life Care Business

(Millions of yen)

Three months ended

Variance

June 30, 2022

June 30, 2023

Revenue

110,820

127,425

15.0%

Segment profit before tax

25,022

30,479

21.8%

<> Products>

Overall sales of eyeglass lenses increased substantially due to strong overseas sales as a result of an increase in sales of high value- added products, an increase in sales to chain stores in the United States, and an increase in sales in China where sales were weak due to lockdown in the same period of the previous fiscal year. Sales of contact lenses increased due to sales promotion activities and strong sales of private brand products (hoyaONE) and online services.

<> Products>

Sales of medical endoscopes increased substantially, reflecting solid sales in Europe and a reaction to the previous fiscal year's lockdown in China. Sales of intraocular lenses for cataracts substantially, mainly due to continued strong sales in Europe and Japan, and an increase in sales in China following the previous fiscal year's lockdown. In other medical-related products, sales increased substantially due to continued strong customer demand for chromatography media used in pharmaceuticals and other applications, as well as strong sales of metal implants.

  • Information Technology Business

(Millions of yen)

Three months ended

Variance

June 30, 2022

June 30, 2023

Revenue

68,260

53,738

-21.3%

Segment profit before tax

35,599

20,938

-41.2%

<> Products>

Sales of mask blanks for semiconductors declined due to the impact of inventory cutbacks, despite ongoing activities for active R&D and start of mass production in advanced products, including those for EUV (Extreme Ultraviolet). Sales of photomasks for FPD increased as a result of ongoing activities to develop new products. Sales of HDD substrates decreased due to erosion of HDD by SSD for 2.5-inch products. Sales of 3.5-inch products also declined due to factors such as cutbacks in investment by end-customers, data centers against the backdrop of the deteriorating macro economy, resulting to division-wide sales decline.

- 2 -

Sales of lenses for cameras decreased compared with the same period of the previous fiscal year, when there was a reactionary increase.

③ Others

(Millions of yen)

Three months ended

Variance

June 30, 2022

June 30, 2023

Revenue

1,099

1,125

2.4%

Segment profit before tax

176

102

-42.2%

The Others segment consists primarily of voice synthetic software and information system services.

2) Reasons for the difference from the previous consolidated cumulative second quarter

(Millions of yen)

Six months ended/ending

Variance

September 30, 2022

September 30, 2023

Revenue

364,291

365,000

0.2%

Profit before tax

123,338

105,000

-14.9%

Profit for the term

95,718

80,500

-15.9%

In the Information Technology Business, sales are expected to decrease due to the impact of inventory adjustments in electronics- related products. However, as sales in the Life Care Business are expected to increase due to factors such as favorable sales of high- value-added products and the development of new customers, the Group as a whole expects revenue to remain at the same level as the same period of the previous fiscal year.

< Profit before tax, Profit for the quarter >

In the consolidated cumulative second quarter, profit before tax is forecast to decrease by ¥18,338 million (14.9%) and quarterly income is forecast to decrease by ¥15,218 million (15.9%), due to a decline in the ratio of revenue from the relatively profitable Information Technology Business to the overall Group and an impairment loss recorded in the first quarter of this fiscal year.

3) Subsequent events

Resolution on Share Repurchase

On July 31, 2023, a resolution was made by the Company's board of directors for share repurchase based on Article 39 of Articles of Incorporation pursuant to Article 459.1 of the Companies Act of Japan as outlined below.

The Company decided to acquire its own shares with the aim of shareholders' benefit, improving capital efficiency and ensuring a flexible capital policy.

(1)

Class of share to be repurchased

Common stock issued by the Company

(2)

Total number of shares to be repurchased

3.6 million shares (maximum)

（1.02% of total shares outstanding, excluding treasury stock）

(3)

Total amount to be paid for repurchase

50 billion yen (maximum)

(4)

Period of share repurchase

August 1, 2023 through October 20, 2023

(5)

Method of repurchase

Purchase on the Tokyo Stock Exchange based on discretionary investment contract

(6)

Others

Purchased stocks are planned to be cancelled with the aim of shareholders' benefit.

- 3 -

3.Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Statement of Financial Position

(HOYA Corporation and its subsidiaries)

(Millions of Yen)

As of

As of

Variance

As of

Mar. 31, 2023

Jun. 30, 2023

Jun. 30, 2022

Amount

(%)

Amount

(%)

Amount

(%)

Amount

(%)

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment-net

178,648

177,572

-1,077

175,999

Goodwill

46,818

50,493

3,675

44,823

Intangible assets

35,732

36,832

1,100

37,462

Investments in associates

971

1,111

140

991

Long-term financial assets

45,303

45,847

544

52,994

Other non-current assets

747

665

-81

675

Deferred tax assets

9,953

10,945

992

10,008

Total non-current assets

318,171

30.9

323,465

29.5

5,294

1.7

322,952

31.5

CURRENT ASSETS

Inventories

105,150

115,033

9,883

101,745

Trade and other receivables

143,194

139,390

-3,804

136,817

Other short-term financial assets

20,379

21,290

911

8,727

Income tax receivables

3,798

5,417

1,619

3,073

Other current assets

30,622

33,522

2,900

29,668

Cash and cash equivalents

405,888

455,470

49,582

420,166

Sub total

709,031

770,123

61,092

700,196

Assets held for sale

1,124

1,337

212

668

Total current assets

710,155

69.1

771,460

70.5

61,304

8.6

700,864

68.5

Total assets

1,028,326

100.0

1,094,924

100.0

66,598

6.5

1,023,816

100.0

-4-

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Disclaimer

Hoya Corporation published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 04:40:16 UTC.