May 15,2024
Quarterly Report
4th Quarter : 3 months ended March 31,2024 Annual : Fiscal year ended March 31,2024
Consolidated (HOYA CORPORATION and Consolidated Subsidiaries)
Part .1
4th Quarter : from January 1 to March 31,2024- Quarterly Consolidated Financial Highlights : p.1
- Results of Operations : p.2
- Subsequent events : p.3
- Quarterly Consolidated Financial Statements
- Quarterly Consolidated Statement of Financial Position : p.4
- Quarterly Consolidated Statement of Cash Flows : p.6
- Quarterly Consolidated Statement of Comprehensive Income : p.7
- Segment Information : p.8
<Reference>Supplementary data for 4th Quarter : p.11
Part .2
Annual : from April 1, 2023 to March 31,2024- Consolidated Financial Highlights : p.12
- Consolidated Financial Statements
- Consolidated Statement of Financial Position : p.13
- Consolidated Statement of Cash Flows : p.15
- Consolidated Statement of Comprehensive Income : p.16
- Segment Information : p.17
Notes:
- HOYA's fiscal year (FY) : from April 1 to March 31 of the following year.
- 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 | May 15,2024 |
1. Quarterly Consolidated Financial Highlights
HOYA CORPORATION and Consolidated Subsidiaries
1. Performance for the three months ended March 31, 2023 and 2024 (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 | Mar.31,2023 | Mar.31,2024 | (%) |
Revenue | 185,766 | 196,823 | 6.0 |
Profit before tax | 53,997 | 72,093 | 33.5 |
Ratio of profit before tax(%) | 29.1% | 36.6% | |
Profit for the quarter | 42,532 | 57,477 | 35.1 |
Ratio of profit for the quarter(%) | 22.9% | 29.2% | |
Profit attributable to owners of the Company | 42,553 | 57,090 | 34.2 |
Ratio of profit attributable to owners of the Company(%) | 22.9% | 29.0% | |
Basic earnings per share (yen) | 119.66 | 162.87 | |
Diluted earnings per share (yen) | 119.60 | 162.81 | |
As of | |||
(2)Financial Position | Dec.31,2023 | Mar.31,2024 | |
Total assets | 1,101,049 | 1,203,623 | |
Total equity | 874,360 | 962,264 | |
Equity attributable to owners of the Company | 880,846 | 967,758 | |
Ratio of assets attributable to owners of the Company | 80.0% | 80.4% | |
Assets attributable to owners of the Company per share (yen) | 2,512.99 | 2,760.91 | |
Three months ended | |||
(3) Conditions of Cash Flows | Mar.31,2023 | Mar.31,2024 | |
Net cash generated from operating activities | 47,897 | 65,931 | |
Net cash used in investing activities | -4,894 | -12,949 | |
Free cash flow | 43,004 | 52,983 | |
Net cash provided by (used in ) financing activities | -36,500 | -1,638 | |
Cash and cash equivalents at end of period | 405,888 | 525,162 |
2.Dividends per Share
Year ended | ||
Mar.31,2023 | Mar.31,2024 | |
Interim (Yen) | 45.00 | 45.00 |
Year-end (Yen) | 65.00 | 65.00 |
Annual (Yen) | 110.00 | 110.00 |
3.Other
Three months ended | ||
Mar.31,2023 | Mar.31,2024 | |
Capital expenditure | 12,704 | 17,789 |
R&D expenses | 7,535 | 8,744 |
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
(1)General Overview
Our operating results for the fourth quarter of the consolidated fiscal year under review (three months from January 1 to March 31, 2024) are as follows. The Life Care business was performing well despite deteriorating external environment. In addition, foreign currency translation also contributed to both revenue and profits increase compared to the previous year. Profit before tax increased significantly due to foreign exchange gains resulting from the further depreciation of yen during the quarter.
(Millions of yen) | Three months ended | Variance | |
Mar.31,2023 | Mar.31,2024 | (%) | |
Revenue | 185,766 | 196,823 | 6.0 |
Profit before tax | 53,997 | 72,093 | 33.5 |
Profit for the quarter | 42,532 | 57,477 | 35.1 |
Ratio of profit for the quarter | 22.9% | 29.2% | 6.3pt |
As there were no discontinued operations in both the third quarter and the same period of the consolidated fiscal year, all figures and rates of change display are solely from continuing operations.
(2)Segment Overview
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 | |
Mar.31,2023 | Mar.31,2024 | (%) | |
Revenue | 124,966 | 137,027 | 9.7 |
Segment profit before tax | 24,466 | 39,151 | 60.0 |
Sales of eyeglass lenses increased as a result of an increase in sales of high value-added products such as progressive lenses and photochromic lenses, despite the fact that sales declined in China due to the recession.
Sales of contact lenses increased due to strong sales of private brand products (hoyaONE) and online services. In addition, unit prices per customer increased steadily through offering high value-added products.
Sales of medical endoscopes increased mainly due to strong sales performance in Americas and foreign exchange tailwinds. On the other hand, sales in China dropped dramatically due to the anti- corruption campaign and the volume-based procurement.
Sales of intraocular lenses for cataracts increased although unit prices fell in China due to the volume- based procurement and there were temporary supply system disruptions in Europe.
In other medical-related products, sales increased due to continued strong customer demand for endoscope cleaning equipment and surgical instruments.
-2-
②Information Technology Business | |||
(Millions of yen) | Three months ended | Variance | |
Mar.31,2023 | Mar.31,2024 | (%) | |
Revenue | 59,607 | 58,737 | -1.5 |
Segment profit before tax | 28,785 | 31,398 | 9.1 |
Sales of mask blanks for semiconductors increased thanks to the gradual recovery from the inventory adjustment for EUV mask blanks. The recovery of demand is progressing moderately as expected. Sales of photomasks for FPD decreased due to a decline in our production capacity against a backdrop of equipment replacements and other factors.
Sales of HDD substrates decreased due to a significant rebound increase from the inventory adjustment in the same period of the previous year. However, sales of 3.5" substrates were strong due to the completion of near-line HDD inventory adjustment at the end of last calendar year.
Sales of imaging products increased due to the firm sales of interchangeable lenses for mirrorless cameras and lenses for automated driving systems.
③Other | |||
(Millions of yen) | Three months ended | Variance | |
Mar.31,2023 | Mar.31,2024 | (%) | |
Revenue | 1,193 | 1,059 | -11.2 |
Segment profit before tax | 220 | 110 | -50.0 |
Both revenue and segment profit before tax of the others segment decreased due to the sale of business.
3. Subsequent events
Resolution on repurchase of Treasury Stock
On May 15, 2024, the Board of Directors of the Company resolved to repurchase certain shares held as treasury stock pursuant to Article 459.1 of the Companies Act of Japan.
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 shares to be repurchased | Common stock |
(2) | Number of shares to be repurchased | 3,000,000 shares (maximum) |
(3) | Total amount to be paid for repurchase | 50,000 million yen (maximum) |
(4) | Period of share repurchase | May 16, 2024 through August 15, 2024 |
(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-
4.Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Statement of Financial Position
(HOYA Corporation and its subsidiaries) | (Millions of Yen) | |||||||
As of Dec.31,2023 | As of Mar.31,2024 | Variance | As of Mar.31,2023 | |||||
Amount | (%) | Amount | (%) | Amount | (%) | Amount | (%) | |
ASSETS | ||||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment-net | 185,736 | 198,225 | 12,489 | 178,648 | ||||
Goodwill | 49,790 | 52,742 | 2,952 | 46,818 | ||||
Intangible assets | 33,545 | 34,042 | 497 | 35,732 | ||||
Investments in associates | 1,340 | 1,487 | 147 | 971 | ||||
Long-term financial assets | 45,911 | 48,401 | 2,490 | 45,303 | ||||
Other non-current assets | 555 | 463 | -93 | 747 | ||||
Deferred tax assets | 11,154 | 11,628 | 475 | 9,953 | ||||
Total non-current assets | 328,031 | 29.8 | 346,988 | 28.8 | 18,957 | 5.8 | 318,171 | 30.9 |
CURRENT ASSETS | ||||||||
Inventories | 115,782 | 119,076 | 3,294 | 105,150 | ||||
Trade and other receivables | 146,701 | 152,606 | 5,905 | 143,194 | ||||
Other short-term financial assets | 19,583 | 19,237 | -346 | 20,379 | ||||
Income tax receivables | 6,443 | 4,298 | -2,145 | 3,798 | ||||
Other current assets | 33,646 | 35,973 | 2,327 | 30,622 | ||||
Cash and cash equivalents | 450,548 | 525,162 | 74,614 | 405,888 | ||||
Sub total | 772,704 | 856,352 | 83,648 | 709,031 | ||||
Assets held for sale | 314 | 282 | -32 | 1,124 | ||||
Total current assets | 773,018 | 70.2 | 856,635 | 71.2 | 83,616 | 10.8 | 710,155 | 69.1 |
Total assets | 1,101,049 | 100.0 | 1,203,623 | 100.0 | 102,574 | 9.3 | 1,028,326 | 100.0 |
-4-
(Millions of Yen) | ||||||||
As of Dec.31,2023 | As of Mar.31,2024 | Variance | As of Mar.31,2023 | |||||
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 | -6,954 | -6,874 | 80 | -41,374 | ||||
Other capital reserves | -16,973 | -17,009 | -36 | -12,800 | ||||
Retained earnings | 748,934 | 805,997 | 57,063 | 752,999 | ||||
Accumulated other comprehensive | 133,676 | 163,482 | 29,805 | 97,334 | ||||
income/(loss) | ||||||||
Equity attributable to owners of the | 880,846 | 80.0 | 967,758 | 80.4 | 86,912 | 9.9 | 818,321 | 79.6 |
Company | ||||||||
Non-controlling interests | -6,485 | -5,494 | 991 | -3,717 | ||||
Total equity | 874,360 | 79.4 | 962,264 | 79.9 | 87,903 | 10.1 | 814,604 | 79.2 |
LIABILITIES | ||||||||
NON-CURRENT LIABILITIES | ||||||||
Interest-bearinglong-term debt | 17,637 | 20,590 | 2,954 | 15,997 | ||||
Other long-term financial liabilities | 22,987 | 24,801 | 1,813 | 21,523 | ||||
Retirement benefits liabilities | 4,461 | 4,315 | -146 | 4,028 | ||||
Provisions | 3,240 | 3,265 | 25 | 3,153 | ||||
Other non-current liabilities | 5,023 | 6,034 | 1,011 | 2,820 | ||||
Deferred tax liabilities | 13,586 | 13,382 | -203 | 10,102 | ||||
Total non-current liabilities | 66,933 | 6.1 | 72,387 | 6.0 | 5,454 | 8.1 | 57,623 | 5.6 |
CURRENT LIABILITIES | ||||||||
Interest-bearingshort-term debt | 8,315 | 8,649 | 334 | 8,585 | ||||
Trade and other payables | 66,915 | 67,771 | 856 | 64,621 | ||||
Other short-term financial liabilities | 154 | 143 | -11 | 264 | ||||
Income tax payables | 14,291 | 23,349 | 9,058 | 21,546 | ||||
Provisions | 1,613 | 1,705 | 91 | 1,558 | ||||
Other current liabilities | 68,361 | 67,291 | -1,070 | 59,394 | ||||
Sub total | 159,650 | 168,909 | 9,259 | 155,967 | ||||
Liabilities held for sale | 106 | 64 | -42 | 132 | ||||
Total current liabilities | 159,756 | 14.5 | 168,972 | 14.0 | 9,216 | 5.8 | 156,099 | 15.2 |
Total liabilities | 226,689 | 20.6 | 241,359 | 20.1 | 14,670 | 6.5 | 213,722 | 20.8 |
Total equity and liabilities | 1,101,049 | 100.0 | 1,203,623 | 100.0 | 102,574 | 9.3 | 1,028,326 | 100.0 |
Total number of issued shares | 350,516 | 350,521 | 5 | 353,988 | ||||
in thousand | ||||||||
Equity attributable to owner of the | ||||||||
Company per share | 2,512.99 | Yen | 2,760.91 | Yen | 247.92 | Yen | 2,311.72 | 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 | ||||
Mar.31,2023 | Mar.31,2024 | Dec.31,2023 | ||
Cash flows from operating activities | ||||
Profit before tax | 53,997 | 72,093 | 18,096 | 49,689 |
Depreciation and amortization | 12,777 | 11,596 | -1,182 | 11,410 |
Impairment losses | 524 | - | -524 | 879 |
Finance income | -2,890 | -4,692 | -1,803 | -4,410 |
Finance costs | 544 | 472 | -72 | 448 |
Share of (profits)/loss of associates | -38 | -93 | -55 | -67 |
(Gain)/loss on sales of property, plant and equipment | -86 | -384 | -298 | -884 |
Loss on disposal of property, plant and equipment | 67 | 127 | 60 | 71 |
Foreign exchange (gain)/loss | 488 | -8,318 | -8,806 | 9,055 |
Others | -1,287 | -5,482 | -4,194 | 3,584 |
Net cash generated from operating activities | 64,095 | 65,318 | 1,223 | 69,775 |
(Before adjustment of movements in working capital) | ||||
Movements in working capital | ||||
Decrease/(increase) in inventories | 2,965 | 994 | -1,971 | -2,601 |
Decrease/(increase) in trade and other receivables | -17,806 | -1,103 | 16,703 | -9,697 |
Increase/(decrease) in trade and other payables | 313 | 2,030 | 1,718 | 1,532 |
Increase/(decrease) in retirement benefits liabilities and provisions | -404 | -376 | 28 | -202 |
Sub total | 49,163 | 66,863 | 17,700 | 58,807 |
Interests received | 2,498 | 3,315 | 817 | 3,514 |
Dividends received | 53 | 5 | -48 | 103 |
Interests paid | -275 | -250 | 25 | -178 |
Income taxes paid | -3,684 | -4,164 | -480 | -20,052 |
Income taxes refunded | 142 | 163 | 21 | 354 |
Net cash generated from operating activities | 47,897 | 65,931 | 18,034 | 42,548 |
Cash flows from investing activities | ||||
Withdrawals of time deposit | 3,940 | 293 | -3,647 | 3,859 |
Payments for time deposit | -331 | - | 331 | -2,033 |
Proceeds from sales of property, plant and equipment | 295 | 606 | 312 | 1,200 |
Payments for acquisition of property, plant and equipment | -7,264 | -13,280 | -6,016 | -10,273 |
Payments for acquisition of investment | -107 | - | 107 | - |
Proceeds from sales of subsidiary | -340 | - | 340 | - |
Payments for purchase of subsidiary | -207 | - | 207 | - |
Payments for business transfer | - | -5 | -5 | -60 |
Other proceeds | 65 | 81 | 16 | 132 |
Other payments | -944 | -643 | 301 | -244 |
Net cash used in investing activities | -4,894 | -12,949 | -8,055 | -7,419 |
Cash flows from financing activities | ||||
Dividends paid to owners of the Company | -15 | -14 | 1 | -15,774 |
Dividends paid to non-controlling interests | -121 | - | 121 | - |
Increase (decrease) in short-term debt | -100 | -100 | - | - |
Proceeds from long-term borrowings | - | 734 | 734 | - |
Repayments of long-term borrowings | -151 | -104 | 47 | -152 |
Payments for lease liabilities | -2,006 | -2,174 | -168 | -2,394 |
Payments for purchase of treasury shares | -33,963 | -1 | 33,962 | -8,083 |
Proceeds from exercise of stock options | 64 | 22 | -43 | 16 |
Repayments to non-controlling interests | -208 | - | 208 | - |
Payments for acquisition of interests in subsidiaries from non-controlling interests | - | - | - | -7,555 |
-36,500 | -1,638 | 34,862 | -33,942 | |
Net increase/(decrease) in cash and cash equivalents | 6,504 | 51,345 | 44,841 | 1,188 |
Cash and cash equivalents at the beginning of the term | 394,313 | 450,548 | 56,235 | 465,601 |
Effects of exchange rate changes on the balance of cash and cash equivalents in | 5,071 | 23,269 | 18,199 | -16,241 |
foreign currencies | ||||
Cash and cash equivalents at the end of the term | 405,888 | 525,162 | 119,274 | 450,548 |
-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 | ||||||||
Mar.31,2023 | Dec.31,2023 | ||||||||
Amount | (%) | Amount | (%) | Amount | (%) | Amount | (%) | ||
All operations | |||||||||
Revenue: | |||||||||
Sales | 185,766 | 100.0 | 196,823 | 100.0 | 11,057 | 6.0 | 194,798 | 100.0 | |
Finance income | 2,890 | 1.6 | 4,692 | 2.4 | 1,803 | 62.4 | 4,410 | 2.3 | |
Share of profit of associates | 38 | 0.0 | 93 | 0.0 | 55 | 144.5 | 67 | 0.0 | |
Other income | 1,349 | 0.7 | 4,664 | 2.4 | 3,315 | 245.7 | 1,351 | 0.7 | |
Total Revenue | 190,043 | 102.3 | 206,273 | 104.8 | 16,230 | 8.5 | 200,626 | 103.0 | |
Expenses: | |||||||||
Changes in inventories of goods, products and work in progress | 2,009 | 1.1 | 1,336 | 0.7 | -673 | -33.5 | -1,259 | -0.6 | |
Raw materials and consumables used | 26,175 | 14.1 | 25,418 | 12.9 | -757 | -2.9 | 27,130 | 13.9 | |
Employee benefits expense | 40,825 | 22.0 | 48,851 | 24.8 | 8,026 | 19.7 | 46,461 | 23.9 | |
Depreciation and amortization | 12,777 | 6.9 | 11,596 | 5.9 | -1,182 | -9.2 | 11,410 | 5.9 | |
Subcontracting cost | 1,139 | 0.6 | 1,004 | 0.5 | -135 | -11.8 | 1,096 | 0.6 | |
Advertising and promotion expense | 4,036 | 2.2 | 4,980 | 2.5 | 944 | 23.4 | 4,611 | 2.4 | |
Commission expense | 11,640 | 6.3 | 13,340 | 6.8 | 1,701 | 14.6 | 12,246 | 6.3 | |
Impairment losses | 524 | 0.3 | - | - | -524 | -100.0 | 879 | 0.5 | |
Finance costs | 544 | 0.3 | 472 | 0.2 | -72 | -13.3 | 448 | 0.2 | |
Foreign exchange (gain)/loss | 840 | 0.5 | -10,815 | -5.5 | -11,654 | - | 11,380 | 5.8 | |
Other expenses | 35,537 | 19.1 | 37,997 | 19.3 | 2,461 | 6.9 | 36,536 | 18.8 | |
Total expense | 136,046 | 73.2 | 134,180 | 68.2 | -1,866 | -1.4 | 150,937 | 77.5 | |
Profit before tax | 53,997 | 29.1 | 72,093 | 36.6 | 18,096 | 33.5 | 49,689 | 25.5 | |
Income tax expense | 11,465 | 6.2 | 14,616 | 7.4 | 3,152 | 27.5 | 10,704 | 5.5 | |
Profit for the term from all operations | 42,532 | 22.9 | 57,477 | 29.2 | 14,945 | 35.1 | 38,985 | 20.0 | |
Other comprehensive income: | |||||||||
Items that will not be reclassified subsequently to profit or loss | |||||||||
Assets measured at fair value through other comprehensive income | -5,371 | 2,024 | 7,395 | - | 16 | ||||
Remeasurements of the net defined benefit liability(asset) | 96 | -21 | -116 | - | - | ||||
Income tax relating to components of other comprehensive income | 1,617 | -282 | -1,899 | - | -23 | ||||
Total Items that will not be reclassified subsequently to profit or loss | -3,658 | 1,722 | 5,380 | - | -7 | ||||
Items that may be reclassified subsequently to profit or loss | |||||||||
Exchange differences on translation of foreign operations | 8,995 | 28,719 | 19,724 | - | -16,696 | ||||
Share of other comprehensive income of associates | 19 | 58 | 39 | - | -28 | ||||
Income tax relating to components of other comprehensive income | 11 | -22 | -33 | - | -30 | ||||
Total Items that may be reclassified subsequently to profit or loss | 9,025 | 28,754 | 19,729 | - | -16,754 | ||||
Total other comprehensive income | 5,366 | 30,476 | 25,109 | - | -16,761 | ||||
Total comprehensive income for the quarter | 47,899 | 87,953 | 40,054 | - | 22,224 | ||||
Profit attributable to : | |||||||||
Owners of the Company | 42,553 | 22.9 | 57,090 | 29.0 | 14,538 | 34.2 | 38,653 | 19.8 | |
Non-controlling interests | -20 | -0.0 | 387 | 0.2 | 407 | - | 332 | 0.2 | |
Total | 42,532 | 22.9 | 57,477 | 29.2 | 14,945 | 35.1 | 38,985 | 20.0 | |
Total comprehensive income attributable to : | |||||||||
Owners of the Company | 47,536 | 86,868 | 39,333 | 82.7 | 22,170 | ||||
Non-controlling interests | 363 | 1,084 | 721 | 198.5 | 53 | ||||
Total | 47,899 | 87,953 | 40,054 | 22,224 | |||||
Basic earnings per share (yen) | 119.66 | 162.87 | 43.21 | 110.26 | |||||
Diluted earnings per share (yen) | 119.60 | 162.81 | 43.21 | 110.22 | |||||
Notes: | |||||||||
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 | |||||||||
1. exchanged by the currency rate of the same period last year. unit : millions of Yen) | |||||||||
2023B | 2023A | Influence | Actual | (%) | |||||
change | |||||||||
Sales | 183,835 | 196,823 | 12,988 | -1,931 | -1.0% | ||||
Profit before tax | 68,555 | 72,093 | 3,538 | 14,558 | 27.0% | ||||
Profit for the quarter | 54,525 | 57,477 | 2,952 | 11,992 | 28.2% | ||||
2. Average rates of major foreign currencies | Mar.31,2023 | Mar.31,2024 | Variance(%) | Dec.31,2023 | |||||
US$ | Yen | 133.44 | 149.88 | -12.3% | 146.14 | ||||
Euro | Yen | 143.96 | 162.15 | -12.6% | 159.10 | ||||
Thai Baht | Yen | 3.93 | 4.18 | -6.4% | 4.17 |
-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
Health care related products
Life Care
Medical related products
Electronics related products
Information
Technology
Imaging related products
Other
Major Products and Services
Eyeglass lenses, Contact lenses, etc. Medical endoscopes, Medical accessories, Automated endoscope reprocessors (AERs), Intraocular lenses, Ophthalmic medical equipment,
Artificial bone, Metallic implants for orthopedics, Chromatography media,etc.
Photomasks and Maskblanks for semiconductors, Photomasks for FPD, Glass disks for hard disk drives (HDDs) Optical lenses, Optical glass material, Laser equipment, Light source, etc.
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 Mar.31,2023 | Technology | operations | ||||
Revenue | ||||||
Revenue from external customers | 124,966 | 59,607 | 1,193 | 185,766 | - | 185,766 |
Inter-segment | 1 | 84 | 4 | 89 | -89 | - |
Total | 124,967 | 59,691 | 1,197 | 185,855 | -89 | 185,766 |
Segment profit before tax | 24,466 | 28,785 | 220 | 53,471 | 526 | 53,997 |
Segment profit before tax ratio | 19.6% | 48.2% | 18.4% | 28.8% | - | 29.1% |
Ref: Profit from ordinary operating activities | 26,528 | 28,181 | 238 | 54,946 | -1,533 | 53,413 |
% of revenue | 21.2% | 47.2% | 19.9% | 29.6% | - | 28.8% |
For the three months | Life Care | Information | Other | Total | Adjustments | All |
ended Mar.31,2024 | Technology | operations | ||||
Revenue | ||||||
Revenue from external customers | 137,027 | 58,737 | 1,059 | 196,823 | - | 196,823 |
Inter-segment | 1 | 191 | 0 | 192 | -192 | - |
Total | 137,028 | 58,928 | 1,059 | 197,016 | -192 | 196,823 |
Segment profit before tax | 39,151 | 31,398 | 110 | 70,659 | 1,434 | 72,093 |
Segment profit before tax ratio | 28.6% | 53.3% | 10.4% | 35.9% | - | 36.6% |
Ref: Profit from ordinary operating activities | 25,818 | 28,818 | 135 | 54,771 | -1,787 | 52,984 |
% of revenue | 18.8% | 48.9% | 12.8% | 27.8% | - | 26.9% |
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 | 12,061 | -870 | -134 | 11,057 | - | 11,057 |
Variance | 9.7% | -1.5% | -11.2% | 6.0% | - | 6.0% |
Inter-segment | 0 | 107 | -4 | 103 | -103 | - |
Total | 12,062 | -763 | -138 | 11,161 | -103 | 11,057 |
Segment profit before tax | 14,685 | 2,613 | -110 | 17,189 | 908 | 18,096 |
Variance | 60.0% | 9.1% | -50.0% | 32.1% | - | 33.5% |
Percentage point variance | 9.0% | 5.1% | -8.0% | 7.1% | - | 7.6% |
Profit from ordinary operating activities | -710 | 637 | -103 | -175 | -253 | -429 |
Variance | -2.7% | 2.3% | -43.3% | -0.3% | 16.5% | -0.8% |
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 | 127,183 | 137,027 | 9,845 | 2,217 | 1.8% | |
Profit from ordinary operating activities | 24,716 | 25,818 | 1,102 | -1,812 | -6.8% | |
Segment profit before tax | 37,092 | 39,151 | 2,059 | 12,626 | 51.6% | |
Information Technology | ||||||
Revenue from external customers | 55,679 | 58,737 | 3,058 | -3,928 | -6.6% | |
Profit from ordinary operating activities | 27,587 | 28,818 | 1,231 | -594 | -2.1% | |
Segment profit before tax | 30,048 | 31,398 | 1,350 | 1,263 | 4.4% | |
Ref : Results of the previous quarter are as follows: | ||||||
For the three months | Life Care | Information | Other | Total | Adjustments | All |
ended Dec.31,2023 | Technology | operations | ||||
Revenue | ||||||
Revenue from external customers | 133,513 | 60,305 | 981 | 194,798 | - | 194,798 |
Inter-segment | 2 | 157 | - | 159 | -159 | - |
Total | 133,514 | 60,462 | 981 | 194,958 | -159 | 194,798 |
Segment profit before tax | 20,321 | 29,534 | 25 | 49,880 | -191 | 49,689 |
Segment profit before tax ratio | 15.2% | 48.8% | 2.6% | 25.6% | - | 25.5% |
Ref: Profit from ordinary operating activities | 27,491 | 30,515 | 25 | 58,031 | -1,358 | 56,673 |
% of revenue | 20.6% | 50.5% | 2.5% | 29.8% | - | 29.1% |
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.
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Hoya Corporation published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:06:48 UTC.