October 31,2023

Quarterly Report

2nd Quarter : 3 months ended September 30,2023

Interim(1st Half) : 6 months ended September 30,2023

Consolidated (HOYA CORPORATION and Consolidated Subsidiaries)

Part .1

2nd Quarter : from July 1 to September 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

ReferenceSupplementary data for 2nd Quarter : p.11

Part .2

Interim(1st Half) : from April 1 to September 30,2023
  1. Interim Consolidated Financial Highlights : p.12
  2. Interim Consolidated Financial Statements
    1. Interim Consolidated Statement of Financial Position : p.13
    2. Interim Consolidated Statement of Cash Flows : p.15
    3. Interim Consolidated Statement of Comprehensive Income : p.16
    4. Segment Information : p.17
Supplementary data for Interim Period : p.20

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

October 31,2023

1. Quarterly Consolidated Financial Highlights

HOYA CORPORATION and Consolidated Subsidiaries

1. Performance for the three months ended September 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

Sep.30,2022

Sep.30,2023

(%)

Revenue

184,112

188,701

2.5

Profit before tax

61,820

63,615

2.9

Ratio of profit before tax(%)

33.6%

33.7%

Profit for the quarter

47,316

47,710

0.8

Ratio of profit for the quarter(%)

25.7%

25.3%

Profit attributable to owners of the Company

47,101

47,418

0.7

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

25.6%

25.1%

Basic earnings per share (yen)

130.95

134.43

Diluted earnings per share (yen)

130.86

134.37

As of

(2)Financial Position

Jun.30,2023

Sep.30,2023

Total assets

1,094,924

1,115,754

Total equity

865,603

883,528

Equity attributable to owners of the Company

868,117

885,384

Ratio of assets attributable to owners of the Company

79.3%

79.4%

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

2,454.94

2,522.12

Three months ended

(3) Conditions of Cash Flows

Sep.30,2022

Sep.30,2023

Net cash generated from operating activities

58,883

58,927

Net cash used in investing activities

-10,785

-13,984

Free cash flow

48,098

44,942

Net cash provided by (used in ) financing activities

-59,728

-44,225

Cash and cash equivalents at end of period

424,125

465,601

2.Dividends per Share

Year ended/ending

Mar.31,2023

Mar.31,2024

Interim (Yen)

45.00

45.00

Year-end (Yen)

65.00

TBD

Annual (Yen)

110.00

TBD

3.Other

Three months ended

Sep.30,2022

Sep.30,2023

Capital expenditure

11,503

14,313

R&D expenses

7,425

8,106

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 Operations

Qualitative Information on Quarterly Financial Results

Our operating results for the second quarter of the consolidated fiscal year under review (three months from July 1 to September 30, 2023) are as follows. The Information Technology business was sluggish, but the Life Care business was performing well, and as a result, revenue increased from the previous year.

(Millions of yen)

Three months ended

Variance

Sep.30,2022

Sep.30,2023

(%)

Revenue

184,112

188,701

2.5

Profit before tax

61,820

63,615

2.9

Profit for the quarter

47,316

47,710

0.8

Ratio of profit for the quarter

33.6%

33.7%

0.1pt

As there were no discontinued operations in both the second 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.)

Life Care Business

(Millions of yen)

Three months ended

Variance

Sep.30,2022

Sep.30,2023

(%)

Revenue

118,798

132,059

11.2

Segment profit before tax

27,410

31,020

13.2

Sales of eyeglass lenses increased as a result of an increase in sales of high value-added products such as myopia management lenses for children(MiYOSMART), and an increase in sales to chain stores in the United States.

Sales of contact lenses increased due to strong sales of private brand products (hoyaONE) and online services.

Sales of medical endoscopes increased mainly due to foreign exchange tailwinds.

Sales of intraocular lenses for cataracts grew substantially, thanks to the strong momentum in all regions.

In other medical-related products, sales increased due to continued strong customer demand for chromatography media used in pharmaceuticals and other applications, as well as strong sales of metal implants.

-2-

Information Technology Business

(Millions of yen)

Three months ended

Variance

Sep.30,2022

Sep.30,2023

(%)

Revenue

64,182

55,548

-13.5

Segment profit before tax

34,427

26,035

-24.4

Amidst an unstable business environment, EUV blanks sales have recovered to a level close to that of the previous year. However, the overall mask blanks sales were still a decline on a year- on-year basis.

Sales of FPD photomasks increased due to ongoing design activities for panels.

Sales of HDD substrates decreased substantially. Demand for 3.5-inch products were weak due to sluggish investments in storage solutions, against the backdrop of the global economic slowdown.

Sales of imaging products increased due to firm sales of interchangeable lenses for mirrorless cameras on the back of increased demand for travel demand and new camera launches

Other

(Millions of yen)

Three months ended

Variance

Sep.30,2022

Sep.30,2023

(%)

Revenue

1,131

1,094

-3.3

Segment profit before tax

238

3,659

1438.3

Segment profit before tax of the others segment increased substantially due to the impact of a sale of business.

-3-

3.Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Statement of Financial Position

(HOYA Corporation and its subsidiaries)

(Millions of Yen)

As of Jun.30,2023

As of Sep.30,2023

Variance

As of Sep.30,2022

Amount

(%)

Amount

(%)

Amount

(%)

Amount

(%)

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment-net

177,572

184,031

6,459

181,878

Goodwill

50,493

52,002

1,509

51,122

Intangible assets

36,832

36,264

-568

40,890

Investments in associates

1,111

1,404

293

1,030

Long-term financial assets

45,847

45,878

31

53,011

Other non-current assets

665

682

17

655

Deferred tax assets

10,945

11,038

94

10,262

Total non-current assets

323,465

29.5

331,299

29.7

7,834

2.4

338,850

32.1

CURRENT ASSETS

Inventories

115,033

116,254

1,221

108,492

Trade and other receivables

139,390

140,155

765

139,441

Other short-term financial assets

21,290

21,425

134

10,344

Income tax receivables

5,417

6,272

855

4,232

Other current assets

33,522

33,534

12

30,608

Cash and cash equivalents

455,470

465,601

10,131

424,125

Sub total

770,123

783,241

13,118

717,242

Assets held for sale

1,337

1,215

-122

Total current assets

771,460

70.5

784,455

70.3

12,996

1.7

717,242

67.9

Total assets

1,094,924

100.0

1,115,754

100.0

20,830

1.9

1,056,093

100.0

-4-

(Millions of Yen)

As of Jun.30,2023

As of Sep.30,2023

Variance

As of Sep.30,2022

Amount

(%)

Amount

(%)

Amount

(%)

Amount

(%)

EQUITY AND LIABILITIES

EQUITY

Share capital

6,264

6,264

6,264

Capital reserves

15,899

15,899

15,899

Treasury shares

-6,548

-48,128

-41,580

-50,097

Other capital reserves

-13,233

-13,432

-199

-12,468

Retained earnings

728,058

775,278

47,220

754,526

Accumulated other comprehensive

137,677

149,503

11,826

122,953

income/(loss)

Equity attributable to owners of the

868,117

79.3

885,384

79.4

17,268

2.0

837,078

79.3

Company

Non-controlling interests

-2,514

-1,856

658

-10,908

Total equity

865,603

79.1

883,528

79.2

17,926

2.1

826,170

78.2

LIABILITIES

NON-CURRENT LIABILITIES

Interest-bearinglong-term debt

16,879

16,889

10

16,202

Other long-term financial liabilities

23,352

24,149

797

28,200

Retirement benefits liabilities

4,367

4,538

171

4,217

Provisions

3,287

3,337

50

2,894

Other non-current liabilities

3,619

3,919

301

2,494

Deferred tax liabilities

11,453

12,091

639

13,868

Total non-current liabilities

62,957

5.7

64,924

5.8

1,967

3.1

67,874

6.4

CURRENT LIABILITIES

Interest-bearingshort-term debt

8,781

8,708

-73

7,450

Trade and other payables

69,896

65,222

-4,674

68,980

Other short-term financial liabilities

203

141

-62

524

Income tax payables

16,882

24,439

7,557

23,369

Provisions

1,687

1,716

29

1,628

Other current liabilities

68,752

66,952

-1,801

60,096

Sub total

166,201

167,178

977

162,048

Liabilities held for sale

163

124

-39

Total current liabilities

166,365

15.2

167,302

15.0

938

0.6

162,048

15.3

Total liabilities

229,321

20.9

232,226

20.8

2,905

1.3

229,923

21.8

Total equity and liabilities

1,094,924

100.0

1,115,754

100.0

20,830

1.9

1,056,093

100.0

Total number of issued shares

353,620

351,048

-2,572

357,547

in thousand

Equity attributable to owner of the

Company per share

2,454.94

Yen

2,522.12

Yen

67.18

Yen

2,341.17

Yen

-5-

(2)Quarterly Consolidated Statement of Cash Flows

(HOYA Corporation and its subsidiaries)

(Millions of Yen)

For the three months

For the three

Variance

months

ended

ended

Sep.30,2022

Sep.30,2023

Jun.30,2023

Cash flows from operating activities

Profit before tax

61,820

63,615

1,795

51,166

Depreciation and amortization

12,286

11,729

-558

12,481

Impairment losses

13

13

7,940

Finance income

-1,578

-3,833

-2,255

-3,344

Finance costs

424

495

71

511

Share of (profits)/loss of associates

-32

-196

-165

-55

(Gain)/loss on sales of property, plant and equipment

-287

-68

219

-40

Loss on disposal of property, plant and equipment

28

38

10

24

Foreign exchange (gain)/loss

-4,766

-2,921

1,845

-5,944

Others

2,125

-1,400

-3,525

-1,625

Net cash generated from operating activities

70,021

67,471

-2,549

61,116

Before adjustment of movements in working capital)

Movements in working capital

Decrease/(increase) in inventories

-2,526

12

2,538

-3,688

Decrease/(increase) in trade and other receivables

909

553

-355

11,047

Increase/(decrease) in trade and other payables

-2,005

-3,362

-1,357

3,353

Increase/(decrease) in retirement benefits liabilities and provisions

0

70

70

133

Sub total

66,398

64,745

-1,653

71,960

Interests received

999

3,117

2,119

2,833

Dividends received

1

1

9

Interests paid

-106

-149

-43

-141

Income taxes paid

-8,468

-8,952

-485

-19,528

Income taxes refunded

59

165

106

263

Net cash generated from operating activities

58,883

58,927

44

55,396

Cash flows from investing activities

Withdrawals of time deposit

91

91

280

Payments for time deposit

-669

669

-591

Proceeds from sales of property, plant and equipment

962

128

-834

52

Payments for acquisition of property, plant and equipment

-6,272

-10,305

-4,033

-7,216

Proceeds from government grant

2,843

Proceeds from sales of investment

2

65

63

Payments for acquisition of investment

-90

-90

Proceeds from sales of subsidiary

3,306

3,306

Advances received from sales of subsidiary

-3,353

-3,353

3,353

Payments for purchase of subsidiary

-3,814

-3,241

572

Payments for business transfer

-166

-214

-47

-57

Other proceeds

53

29

-24

128

Other payments

-880

-400

480

-249

Net cash used in investing activities

-10,785

-13,984

-3,200

-1,456

Cash flows from financing activities

Dividends paid to owners of the Company

-56

-50

7

-22,941

Dividends paid to non-controlling interests

-50

50

Increase (decrease) in short-term debt

-100

-100

Repayments of long-term borrowings

-6

-151

-144

-148

Payments for lease liabilities

-2,137

-2,091

46

-2,213

Payments for purchase of treasury shares

-57,431

-41,925

15,507

-6,042

Proceeds from exercise of stock options

53

91

38

257

Net cash used in financing activities

-59,728

-44,225

15,503

-31,088

Net increase/(decrease) in cash and cash equivalents

-11,629

718

12,347

22,852

Cash and cash equivalents at the beginning of the term

420,166

455,470

35,304

405,888

Effects of exchange rate changes on the balance of cash and cash equivalents in

15,589

9,413

-6,176

26,730

foreign currencies

Cash and cash equivalents at the end of the term

424,125

465,601

41,476

455,470

-6-

(3) Quarterly Consolidated Statement of Comprehensive Income

(HOYA Corporation and its subsidiaries)

(Millions of Yen)

For the three months ended

For the three

Variance

months ended

Sep.30,2022

Sep.30,2023

Jun.30,2023

Amount

(%)

Amount

(%)

Amount

(%)

Amount

(%)

All operations

Revenue:

Sales

184,112

100.0

188,701

100.0

4,589

2.5

182,288

100.0

Finance income

1,578

0.9

3,833

2.0

2,255

143.0

3,344

1.8

Share of profit of associates

32

0.0

196

0.1

165

521.7

55

0.0

Other income

630

0.3

3,398

1.8

2,769

439.8

3,915

2.1

Total Revenue

186,351

101.2

196,128

103.9

9,778

5.2

189,601

104.0

Expenses:

Changes in inventories of goods, products and work in progress

-1,574

-0.9

2,130

1.1

3,703

-1,424

-0.8

Raw materials and consumables used

27,788

15.1

25,310

13.4

-2,478

-8.9

25,998

14.3

Employee benefits expense

40,373

21.9

45,001

23.8

4,628

11.5

44,296

24.3

Depreciation and amortization

12,286

6.7

11,729

6.2

-558

-4.5

12,481

6.8

Subcontracting cost

1,169

0.6

1,150

0.6

-18

-1.6

1,206

0.7

Advertising and promotion expense

4,056

2.2

4,267

2.3

212

5.2

4,398

2.4

Commission expense

11,015

6.0

12,251

6.5

1,235

11.2

11,796

6.5

Impairment losses

13

0.0

13

7,940

4.4

Finance costs

424

0.2

495

0.3

71

16.8

511

0.3

Foreign exchange (gain)/loss

-6,336

-3.4

-3,453

-1.8

2,883

-45.5

-6,704

-3.7

Other expenses

35,329

19.2

33,621

17.8

-1,708

-4.8

37,937

20.8

Total expense

124,531

67.6

132,513

70.2

7,983

6.4

138,435

75.9

Profit before tax

61,820

33.6

63,615

33.7

1,795

2.9

51,166

28.1

Income tax expense

14,504

7.9

15,905

8.4

1,401

9.7

12,772

7.0

Profit for the term from all operations

47,316

25.7

47,710

25.3

394

0.8

38,395

21.1

Other comprehensive income:

Items that will not be reclassified subsequently to profit or loss

Assets measured at fair value through other comprehensive income

-64

16

79

180

Remeasurements of the net defined benefit liability(asset)

2

2

Income tax relating to components of other comprehensive income

52

8

-44

-22

Total Items that will not be reclassified subsequently to profit or loss

-12

26

37

158

Items that may be reclassified subsequently to profit or loss

Exchange differences on translation of foreign operations

17,332

11,970

-5,362

41,106

Share of other comprehensive income of associates

8

6

-2

86

Income tax relating to components of other comprehensive income

-21

-7

13

17

Total Items that may be reclassified subsequently to profit or loss

17,320

11,969

-5,351

41,209

Total other comprehensive income

17,308

11,995

-5,314

41,367

Total comprehensive income for the quarter

64,625

59,704

-4,920

-7.6

79,761

Profit attributable to :

Owners of the Company

47,101

25.6

47,418

25.1

317

0.7

38,215

21.0

Non-controlling interests

215

0.1

292

0.2

77

35.9

179

0.1

Total

47,316

25.7

47,710

25.3

394

0.8

38,395

21.1

Total comprehensive income attributable to :

Owners of the Company

64,248

59,047

-5,202

-8.1

78,559

Non-controlling interests

376

658

282

74.8

1,203

Total

64,625

59,704

-4,920

-7.6

79,761

Basic earnings per share (yen)

130.95

134.43

3.48

108.07

Diluted earnings per share (yen)

130.86

134.37

3.51

108.01

Notes:

1. Effect of Exchange Rate Change on Net Sales and Incomes ("2023A" is the actual value of this period. "2023B" is the nominal value of this period which temporarily exchanged by the currency rate of the same period last year. unit : millions of Yen)

2023B

2023A

Influence

Actual

(%)

change

Sales

181,736

188,701

6,965

-2,376

-1.3%

Profit before tax

61,787

63,615

1,828

-33

-0.1%

Profit for the quarter

46,291

47,710

1,419

-1,025

-2.2%

For the three months ended

For the three months ended

2. Average rates of major foreign currencies

Sep.30,2022

Sep.30,2023

Variance(%)

Jun.30,2023

US$

Yen

139.35

145.58

-4.5%

139.63

Euro

Yen

139.53

157.73

-13.0%

151.89

Thai Baht

Yen

3.77

4.13

-9.5%

4.01

-7-

(4) Segment Information

Reportable segments are components of the Group for which separate financial information is obtained and examined on a regular basis by the board of directors and the chief operating decision maker to determine the allocation of management resources and evaluate the business performance.

In accordance with its management philosophy, the Group has categorised "life and culture" and "information technology" as its business domains. To achieve sustainable growth in corporate value in these business domains, the Group has been making decisions on the allocation of management resources and monitoring the operating results.

As a result, the Group consists of three reportable business segments: Life Care business, Information Technology business and Other business, which are consistent with the above business domains.

In the Life Care business, the Group produces and sells health care related products that are used routinely in health maintenance fields, and medical related products including medical equipment and medical supplies used in medical treatment. Some unique features of this business segment are that approvals and permits are required from relevant authorities in each country and that advanced technological strength and reliable quality control systems are the key requirement.

In the Information Technology business, the Group produces and sells essential items for digital devices. Included are electronics related products that are indispensable for today's digital information and communication technology, and imaging related products that are necessary to capture images as digital data based on optical technologies.

Other business includes the business that provides mainly speech synthesis software and information system services.

The main products and services for each reportable segment described above are as follows:

Reportable Segment

Major Products and Services

Health care related products

Eyeglass lenses, Contact lenses, etc.

Medical endoscopes, Medical accessories,

Life Care

Automated endoscope reprocessors (AERs),

Medical related products

Intraocular lenses, Ophthalmic medical equipment,

Artificial bone, Metallic implants for orthopedics,

Chromatography media,etc.

Electronics related products

Photomasks and Maskblanks for semiconductors,

Information

Photomasks for FPD, Glass disks for hard disk drives (HDDs)

Technology

Imaging related products

Optical lenses, Optical glass material, Laser equipment,

Light source, etc.

Other

Speech synthesis software, Design of information systems, etc.

-8-

1. Segment revenues and results

(Millions of Yen)

For the three months

Life Care

Information

Other

Total

Adjustments

All

ended Sep.30,2022

Technology

operations

Revenue

Revenue from external customers

118,798

64,182

1,131

184,112

184,112

Inter-segment

1

24

5

30

-30

Total

118,799

64,207

1,137

184,142

-30

184,112

Segment profit before tax

27,410

34,427

238

62,075

-255

61,820

Segment profit before tax ratio

23.1%

53.6%

20.9%

33.7%

33.6%

Ref: Profit from ordinary operating activities

23,160

31,685

198

55,043

-1,191

53,852

% of revenue

19.5%

49.3%

17.4%

29.9%

29.2%

For the three months

Life Care

Information

Other

Total

Adjustments

All

ended Sep.30,2023

Technology

operations

Revenue

Revenue from external customers

132,059

55,548

1,094

188,701

188,701

Inter-segment

-0

126

0

126

-126

Total

132,059

55,674

1,094

188,827

-126

188,701

Segment profit before tax

31,020

26,035

3,659

60,714

2,901

63,615

Segment profit before tax ratio

23.5%

46.8%

334.4%

32.2%

33.7%

Ref: Profit from ordinary operating activities

28,166

25,292

198

53,655

-1,245

52,410

% of revenue

21.3%

45.4%

18.1%

28.4%

27.8%

Ref : Difference between the results of the quarter under review and the same period the previous year is as follows:

Life Care

Information

Other

Total

Adjustments

All

Technology

operations

Variance

Revenue from external customers

13,261

-8,634

-37

4,589

4,589

Variance

11.2%

-13.5%

-3.3%

2.5%

2.5%

Inter-segment

-1

102

-5

96

-96

Total

13,260

-8,533

-43

4,685

-96

4,589

Segment profit before tax

3,610

-8,392

3,421

-1,361

3,156

1,795

Variance

13.2%

-24.4%

1438.3%

-2.2%

2.9%

Percentage point variance

0.4%

-6.9%

313.5%

-1.6%

0.1%

Profit from ordinary operating activities

5,006

-6,394

-0

-1,387

-55

-1,442

Variance

21.6%

-20.2%

-0.1%

-2.5%

4.6%

-2.7%

Note:Effect of Exchange Rate Change on Net Sales and Incomes ("2023 A" is the actual value of this period. "2023 B" is the nominal value of this period which temporarily exchanged by the currency rate of the same period the previous year. unit : millions of Yen)

2023B

2023A

Influences

Actual

(%)

change

Life Care

Revenue from external customers

126,219

132,059

5,840

7,421

6.2%

Profit from ordinary operating activities

26,940

28,166

1,226

3,780

16.3%

Segment profit before tax

29,313

31,020

1,708

1,903

6.9%

Information Technology

Revenue from external customers

54,494

55,548

1,054

-9,688

-15.1%

Profit from ordinary operating activities

24,939

25,292

352

-6,746

-21.3%

Segment profit before tax

25,975

26,035

60

-8,453

-24.6%

Ref : Results of the previous quarter are as follows:

For the three months

Life Care

Information

Other

Total

Adjustments

All

ended Jun.30,2023

Technology

operations

Revenue

Revenue from external customers

127,425

53,738

1,125

182,288

182,288

Inter-segment

1

129

8

137

-137

Total

127,426

53,866

1,133

182,425

-137

182,288

Segment profit before tax

30,479

20,938

102

51,519

-353

51,166

Segment profit before tax ratio

23.9%

38.9%

9.0%

28.2%

28.1%

Ref: Profit from ordinary operating activities

25,281

23,721

105

49,106

-1,332

47,774

% of revenue

19.8%

44.0%

9.2%

26.9%

26.2%

Note:Profit from ordinary operating activities is operating profit before finance income/costs, share of profits(loss) of associates, foreign exchange gain/loss and other temporary gain/loss.

-9-

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Hoya Corporation published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 04:38:12 UTC.