FY19Q3
F i n a n c i a l R e s u l t s
February 4, 2020@Station Conference Tokyo
7 7 4 1 . T [ A D R : H O C P Y U S ]
H O Y A C O R P O R A T I O N
© 2020 HOYA CORPORATION All Rights Reserved
- Financial Results [Ryo Hirooka, CFO]
- IT Business Overview
- Life Care Business Overview
- Summary
- Q&A
© 2020 HOYA CORPORATION All Rights Reserved | 2 |
Financial Overview
(¥bn) | Q3 FY18 | Q3 FY19 | YoY | YoY(%) |
Revenue | 143.4 | 146.5 | +3.1 | +2% |
Pretax Profit | 39.7 | 38.3 | -1.4 | -3% |
Net Profit | 33.1 | 29.7 | -3.5 | -11% |
cf. Profit from
ordinary operating 39.9 38.3 -1.6 -4% activities*
*Herein after "Operating Profit"
Revenue increased driven by HDD substrates and LSI blanks. However, profit declined due to factors including a reactionary decline in contact lenses related to the consumption tax hike.
© 2020 HOYA CORPORATION All Rights Reserved | 3 |
Constant Currency Basis (CCB)
Previous | Current | |||||||
(¥bn) | FX Impact | YoY | YoY(%) | |||||
Rate (A) | Rate (B) | |||||||
Revenue | 150.1 | 146.5 | -3.6 | +6.7 | +5% | |||
Pretax | 38.7 | 38.3 | -0.3 | -1.0 | -3% | |||
Profit | ||||||||
Net Profit | 29.9 | 29.7 | -0.2 | -3.2 | -10% | |||
Average Rates | (A)Q3 FY18 | (B)Q3 FY19 | Variance |
US$ | ¥112.58 | ¥109.33 | +2.9% |
EURO | ¥128.21 | ¥121.53 | +5.2% |
BAHT | ¥3.42 | ¥3.62 | -5.8% |
© 2020 HOYA CORPORATION All Rights Reserved | 4 |
Notes RE: Special Items
Comprehensive Income Statement | |||||||
(¥bn) | Q3 FY18 | Q3 FY19 | YoY | ||||
Income | 145.1 | 148.2 | +3.1 | ||||
Expenses | 105.4 | 109.8 | +4.4 | ||||
D&A | 6.5 | 8.7 | +2.2 | ||||
Pretax | |||||||
Profit | 39.7 | 38.3 | -1.4 |
Depreciation and amortization increased ¥2.2 bn due to the adoption of a new lease accounting policy (other expenses decrease, resulting in a net-neutral impact related to total expenses).
© 2020 HOYA CORPORATION All Rights Reserved | 5 |
Life Care Earnings
(¥bn) | Q3 FY18 | Q3 FY19 | YoY | YoY(%) |
Revenue* | 93.9 | 92.5 | -1.4 | -2% |
Pretax Profit | 19.1 | 15.3 | -3.8 | -20% |
cf.Operating Profit | 19.6 | 15.7 | -3.9-20% |
cf.OP Margin | 20.9% | 16.9% -4.0pt |
*External revenue
© 2020 HOYA CORPORATION All Rights Reserved | 6 |
Life Care Earnings (CCB)
(¥bn) | Previous | Current | FX | YoY | YoY(%) |
Rate | Rate | Impact | |||
* | 95.1 | 92.5 | -2.6 | +1.2 | +1% |
Revenue | |||||
Pretax Profit | 15.3 | 15.3 | +0.0 | -3.8 | -20% |
cf.Operating Profit 15.7 15.7 -0.0-3.9-20%
*External revenue
© 2020 HOYA CORPORATION All Rights Reserved | 7 |
IT Earnings
(¥bn) | Q3 FY18 | Q3 FY19 | YoY | YoY(%) |
Revenue* | 48.3 | 52.7 | +4.4 | +9% |
Pretax profit | 21.5 | 23.5 | +2.0 | +9% |
cf.Operating Profit 21.6 23.6 +2.1 +10%
cf.OP Margin | 44.7% | 44.9% +0.2pt |
*External revenue
© 2020 HOYA CORPORATION All Rights Reserved | 8 |
IT Earnings (CCB)
(¥bn) | Previous | Current | FX | YoY | YoY(%) |
Rate | Rate | Impact | |||
* | 53.6 | 52.7 | -1.0 | +5.4 | +11% |
Revenue | |||||
Pretax profit | 23.8 | 23.5 | -0.3 | +2.3 | +11% |
cf.Operating Profit 24.0 23.6 -0.3 +2.4 +11%
*External revenue
© 2020 HOYA CORPORATION All Rights Reserved | 9 |
Earnings by Sub-Segment
Healthcare Revenue
Eyeglass Lenses / Contact Lenses
(¥bn) | Q3 FY18 | Q3 FY19 | YoY | YoY(%) |
Revenue* | 69.3 | 66.8 | -2.5 | -4% |
Constant Currency Basis
(¥bn) | Previous Rate | Current Rate | YoY | YoY(%) |
Revenue* | 68.6 | 66.8 | -0.7 | -1% |
*External revenue
© 2020 HOYA CORPORATION All Rights Reserved | 10 |
Earnings by Sub-Segment
Medical Revenue
Endoscopes / IOLs | ||||
(¥bn) | Q3 FY18 | Q3 FY19 | YoY | YoY(%) |
Revenue* | 24.6 | 25.7 | +1.1 | +5% |
Constant Currency Basis
(¥bn) | Previous Rate | Current Rate | YoY | YoY(%) |
Revenue* | 26.5 | 25.7 | +1.9 | +8% |
*External revenue
© 2020 HOYA CORPORATION All Rights Reserved | 11 |
Earnings by Sub-Segment
Electronics
Masks & Blanks / HDD Substrates
(¥bn) | Q3 FY18 | Q3 FY19 | YoY | YoY(%) |
Revenue* | 38.3 | 43.9 | +5.6 | +15% |
Constant Currency Basis
(¥bn) | Previous Rate | Current Rate | YoY | YoY(%) |
Revenue* | 44.7 | 43.9 | +6.4 +17% |
*External revenue
© 2020 HOYA CORPORATION All Rights Reserved | 12 |
Earnings by Sub-Segment
Imaging
Optical Lenses, Etc.
(¥bn) | Q3 FY18 | Q3 FY19 | YoY | YoY(%) |
Revenue* | 10.0 | 8.8 | -1.2 | -12% |
Constant Currency Basis
(¥bn) | Previous Rate | Current | YoY | YoY(%) |
Rate | ||||
Revenue* | 8.9 | 8.7 | -1.1 | -11% |
*External revenue
© 2020 HOYA CORPORATION All Rights Reserved | 13 |
Balance Sheet
(¥bn) | Q2 FY19 | Q3 FY19 | QoQ | ||||
Non-current Assets | 279.8 | 291.2 | +11.3 | ||||
Current Assets | 516.9 | 522.3 | +5.4 | ||||
Capital | 637.0 | 652.8 | +15.9 | ||||
Non-current Liabilities | 31.4 | 31.1 | -0.3 | ||||
Current Liabilities | 128.4 | 129.5 | +1.1 | ||||
Total Assets | 796.8 | 813.4 | +16.7 |
Capital increased by ¥15.9 bn, mainly due to the cancellation of treasury stock (¥22.3 bn).
© 2020 HOYA CORPORATION All Rights Reserved | 14 |
Cash Flow
(¥bn)Q3 FY18 Q3 FY19 YoY
Operating CF | 34.1 | 40.1 | +6.0 | |||||
D&A | 6.5 | 8.7 | +2.2 | |||||
Investing CF | 7.9 | -11.7 | -19.6 | |||||
Financing CF | -16.3 | -27.9 | -11.5 | |||||
Payments for lease liabilities | - | -2.3 | -2.3 | |||||
Cash & Cash Equivalents | 272.3 | 304.4 | +32.1 | |||||
at the end of the term |
Due to applying a new lease accounting policy, D&A (Operating CF) increased, while payments for lease liabilities (Financing CF) decreased; the net impact of this change was neutral.
© 2020 HOYA CORPORATION All Rights Reserved | 15 |
Share Buyback
Share Buyback #1 :Closed at end of Oct.
Maximum Amount: ¥60 bn
Period: May 8, 2019 to October 28, 2019
Actual Amount Repurchased: ¥24.1 bn (canceled)
Share Buyback #2 :In Progress
Maximum Amount: ¥50 bn
Period: October 30, 2019 to April 23, 2020
Repurchased to date: ¥9.2 bn (as of Jan, 2020)
HOYA repurchased shares worth ¥33.3 bn year-to-date (#1 & #2)
© 2020 HOYA CORPORATION All Rights Reserved | 16 |
Q4 & Full Year Guidance
✓ We expect the tax-hike impact on our contact lens business to continue, however the impact will ease QoQ.
✓ LSI blanks will maintain momentum driven by strong demand for EUV products. ✓ HDD substrate sales to decline QoQ due to seasonality (Chinese New Year).
However, we expect growth on a YoY basis.
FY19 Q4 | ||||
Q4 FY18 | Q4 FY19 | YoY | YoY(%) | |
(¥bn) | ||||
Sales | 141.5 | 144.6 | +3.1 | +2% |
Pretax Profit | 31.4 | 35.4 | +4.1 | +13% |
Net Profit | 29.2 | 28.2 | -1.1 | -4% |
FY19 Full Year | ||||
FY18 | FY19 | YoY | YoY(%) | |
(¥bn) | ||||
Sales | 565.8 | 586.0 | +20.2 | +4% |
Pretax Profit | 144.7 | 155.0 | +10.3 | +7% |
Net Profit | 122.1 | 123.0 | +0.9 | +1% |
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- Financial Results
- IT Business Overview [Hiroshi Suzuki, CEO]
- Life Care Business Overview
- Summary
- Q&A
© 2020 HOYA CORPORATION All Rights Reserved | 18 |
IT Snapshot
YoY Sales Growth (Like-for-Like)
+17% | +17% | -9% |
HDD Substrates | Masks & Blanks | Imaging |
(LSI/FPD) |
+12%
© 2020 HOYA CORPORATION All Rights Reserved | 19 |
Overview by Product
LSI Blanks
FPD/LSI Masks
This Quarter
DUV sales dropped slightly due to a customer building stock last quarter. EUV sales grew 80-plus percent YoY.
Going Forward
New EUV fab in Singapore to start operations in April. Start of mass production in H2 FY20 after qualification process.
This Quarter
FPD Masks experienced growth through captured demand in the Chinese OLED market (mainly G6).
Going Forward
Expand OLED business, especially in China, as further growth of the market is expected.
© 2020 HOYA CORPORATION All Rights Reserved | 20 |
Overview by Product
HDD Substrates
Imaging
This Quarter
3.5" sales was 2.5x due to increased demand related to data centers. 3.5" products now account for 42% of total sales.
Going Forward
New factory in Laos (producing 3.5" substrates) to ship sample products beginning in April. Mass production to
begin by H2 FY20 after qualification process.
This Quarter
Due to market contraction, our imaging-related sales continued to decline.
Going Forward
Make proactive cost savings to protect profitability.
© 2020 HOYA CORPORATION All Rights Reserved | 21 |
- Financial Results
- IT Business Overview
- Life Care Business Overview[Hiroshi Suzuki, CEO]
- Summary
- Q&A
© 2020 HOYA CORPORATION All Rights Reserved | 22 |
Life Care Snapshot
YoY Sales Growth (Like-for-Like)
+2%
+2% | -8% | Endoscopes | |
*Includes tax | |||
hike impact | |||
+0% | +10% | ||
Eyeglass Lenses | Contact Lenses | Other | IOLs |
-0% |
© 2020 HOYA CORPORATION All Rights Reserved | 23 |
Overview by Product
This Quarter | ||
Japan sales declined due to the consumption tax hike etc. | ||
High growth in Europe and Asia continued. New factory in | ||
Vietnam started test production. | ||
Going Forward | ||
Eyeglass Lenses | ||
Capture peak season demand (Q4). Gradually ramp up | ||
the new Vietnam factory. | ||
This Quarter | ||
Reactionary decline related to consumption tax hike. | ||
No. of stores at quarter-end: 326 (including acquisitions) | ||
Going Forward | ||
Contact Lenses | Continue to expand customer reach through new store | |
roll-outs and acquisitions in areas in which we have no | ||
presence yet. |
© 2020 HOYA CORPORATION All Rights Reserved | 24 |
Overview by Product
IOLs
Endoscopes
This Quarter
Achieved double-digit growth in APAC. Sales of standard products in China was the main contributor.
Going Forward
Prepare high-end product launch in China. We will launch new products going forward including new-type injectors.
This Quarter
New product launch in the Americas was delayed. Sales in Europe grew, as new product launches are proceeding.
Going Forward
Launch new products going forward.
© 2020 HOYA CORPORATION All Rights Reserved | 25 |
- Financial Results
- IT Business Overview
- Life Care Business Overview
- Summary[Hiroshi Suzuki, CEO]
- Q&A
© 2020 HOYA CORPORATION All Rights Reserved | 26 |
- Financial Results
- IT Business Overview
- Life Care Business Overview
- Summary
- Q&A
© 2020 HOYA CORPORATION All Rights Reserved | 27 |
Appendix
© 2020 HOYA CORPORATION All Rights Reserved | 28 |
Life Care QoQ Earnings
Revenue | cf. Operating Profit / Margin | ||||
93.9 | 96.3 | 100.4 | 20.9% | 21.6% | |
93.8 | 92.5 | 19.4% | |||
18.8% | |||||
16.9%
(¥bn) | ¥bn) |
( |
21.7
19.6 18.1 18.2
15.7
Q3 | Q4 | Q1 | Q2 | Q3 | Q3 | Q4 | Q1 | Q2 | Q3 | |
FY18 | FY19 | FY18 | FY19 | |||||||
*External revenue
© 2020 HOYA CORPORATION All Rights Reserved | 29 |
IT QoQ Earnings
Revenue
48.3 | 52.4 | 52.7 | |
46.0 | |||
43.7 | |||
(bn) | (¥bn) |
Q3 Q4 Q1 Q2 Q3
FY18 FY19
*External revenue
cf. Operating Profit / Margin
44.7% | 46.0% | 46.2% | 44.9% |
41.8% | |||
21.6 21.2 24.3 23.6
18.3
Q3 | Q4 | Q1 | Q2 | Q3 |
FY18 FY19
© 2020 HOYA CORPORATION All Rights Reserved | 30 |
Topics
[Eyeglasses] New Factory in Vietnam Starts Operations
In November 2019, HOYA launched a new eyeglass lens production facility in Quang Ngai, central Vietnam. The facility has two buildings on the eight-hectare site, with a maximum capacity of 140 million units per year (stock lenses). Being one of the largest plants in eyeglass lens capacity, it will cater to the increasing global demand. Currently, the first building has
started test production. The second building will start operations in early FY20.
HOYA Delivers MW10 to Schools for the Blind
"We want to show starry skies to students of schools for the blind by providing scotopic vision eyeglasses." HOYA sponsored a crowd funding
project launched by Nippon Lighthouse, a social welfare service corporation. The crowd funding collected JPY3.5 million which surpassed the target of JPY3 million. Under this project, HOYA provided specially priced scotopic vision eyeglasses, HOYA MW10 HiKARI, to twelve schools for the blind. We will continue to support the activity of this project.
© 2020 HOYA CORPORATION All Rights Reserved | 31 |
Notes
✓ Accounting standard: IFRS
✓ The fiscal year ending March 2020 is referred to as "FY19" throughout this document.
✓ Figures less than ¥100 million are rounded down. Accordingly, some discrepancies may occur among totals. Ratios are calculated using actual numbers.
✓ Like-for-Like figures exclude foreign exchange and M&A impact as well as other extraordinary factors.
✓ Profit from ordinary operating activities is calculated as reference information for investors; calculated by deducting finance income/costs, share of profits(loss) of associates, foreign exchange gain/loss and other temporary gain/loss from pretax profit.
✓ We have omitted a detailed breakdown of financial statements.
Please refer to the tanshin or the quarterly report for detailed numbers. http://www.hoya.co.jp/english/investor/library.html
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Disclaimer
This report is provided solely for the information of professional investors and 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.
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Hoya Corporation published this content on 04 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 February 2020 07:25:02 UTC