HOYA : IFRS Report

HOYA Corporation and its Subsidiaries Consolidated Financial Statements under IFRSs and Independent Auditor's Report

For the year ended 31 March 2017

HOYA Corporation

Contents

Independent Auditor's Report..................................................................................................................................... 3

Consolidated Statement of Financial Position............................................................................................................. 4

Consolidated Statement of Comprehensive Income.................................................................................................... 6

Consolidated Statement of Changes in Equity............................................................................................................ 8

Consolidated Statement of Cash Flows...................................................................................................................... 13

Notes to the Consolidated Financial Statements......................................................................................................... 15

1． General information..................................................................................................................................... 15

2． Basis of consolidated financial statements.................................................................................................. 15

3． Significant accounting policies.................................................................................................................... 17

4． Critical accounting judgements and key sources of estimation uncertainty................................................ 33

5． Operating segment information................................................................................................................... 34

6． Property, plant and equipment..................................................................................................................... 39

7． Goodwill and intangible assets.................................................................................................................... 43

8． Impairment losses........................................................................................................................................ 46

9． Investments in associates............................................................................................................................. 50

10． Deferred taxes and income taxes................................................................................................................. 51

11． Other financial assets and liabilities............................................................................................................. 56

12． Other assets and liabilities........................................................................................................................... 57

13． Inventories................................................................................................................................................... 58

14． Trade and other receivables......................................................................................................................... 58

15． Interest-bearing debt.................................................................................................................................... 59

16． Finance lease obligations............................................................................................................................. 60

17． Operating lease arrangements...................................................................................................................... 61

18． Retirement benefit plans............................................................................................................................... 62

19． Provisions..................................................................................................................................................... 66

20． Trade and other payables............................................................................................................................. 67

21． Share capital and other equity items............................................................................................................ 68

22． Financial instruments................................................................................................................................... 72

23． Share-based payments.................................................................................................................................. 88

24． Revenue and expenses (excluding finance income and costs)..................................................................... 91

25． Finance income and costs............................................................................................................................ 93

26． Other comprehensive income...................................................................................................................... 94

27． Earnings per share....................................................................................................................................... 96

28． Non-cash transactions.................................................................................................................................. 97

29． Subsidiaries.................................................................................................................................................. 98

30． Related party disclosures............................................................................................................................. 104

31． Business combinations................................................................................................................................. 105

32． Contingent liabilities.................................................................................................................................... 108

33． Commitments for expenditure..................................................................................................................... 108

34． Subsequent events........................................................................................................................................ 108

35． Approval of financial statements................................................................................................................. 108

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Deloitte. Deloitte Touche Tohmatsu LLC Shinagawa Intercity

2-15-3 Konan

Minato-ku, Tokyo 108-6221 Japan

Tel +81 (3) 6720 8200

Fax: +81 (3) 6720 8205

www.deloitte.com/jp/en

To the Board of Directors of HOYA CORPORATION:

We have audited the accompanying consolidated statement of financial position of HOYA CORPORATION and its subsidiaries as at 31 March 2017, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, all expressed in Japanese yen.

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of HOYA CORPORATION and its subsidiaries as at 31 March 2017, and the consolidated results of their operations and their cash flows for the year then ended in accordance with International Financial Reporting Standards.

Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made in accordance with the basis stated in Note 2 to the consolidated financial statements. Such U.S. dollar amounts are presented solely for the convenience of readers outside Japan.

8 June 2017

Member of

Deloitte Touche Tohmatsu Limited

Consolidated Statement of Financial Position

ASSETS

NON-CURRENT ASSETS:

Property, plant and equipment-net Goodwill

Intangible assets Investments in associates Long-term financial assets

Other non-current assets

Deferred tax assets

Total non-current assets CURRENT ASSETS:

Inventories

Trade and other receivables Other short-term financial assets Income taxes receivable

Other current assets

Cash and cash equivalents

Total current assets Total assets

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