HOYA : Presentation for the three months ended Dec.31,2020 (with Transcript)

HOYA CORPORATION

Q3 Financial Results Briefing for the Fiscal Year Ending March 2021

January 28, 2021

Event Summary

[Company Name]	HOYA CORPORATION
[Company ID]	7741-QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Q3 Financial Results Briefing for the Fiscal Year Ending March 2021
[Fiscal Period]	FY2020 Q3
[Date]	January 28, 2021
[Number of Pages]	29
[Time]	15:00 - 16:00
	(Total: 60 minutes, Presentation: 46 minutes, Q&A: 14 minutes)
[Venue]	Webcast
[Venue Size]
[Participants]	300
[Number of Speakers]	3
	Hiroshi Suzuki	Representative Executive Officer, President
		& CEO
	Ryo Hirooka	Representative Executive Officer & CFO
	Eiichiro Ikeda	Executive Officer & CTO
[Analyst Names]*	Masahiro Shibano	Citigroup Global Markets Japan Inc.
	Ryosuke Katsura	SMBC Nikko Securities Inc.
	Richard Kaye	Comgest Asset Management Japan Ltd.

Presentation

Moderator: The Company's speakers today include CEO Hiroshi Suzuki, CFO Ryo Hirooka, and CTO Eiichiro Ikeda.

Today's agenda is as follows. First, Hirooka will present the third-quarter financial results. Then, Ikeda will give an overview of the IT Business. Finally, Suzuki will give an overview of the Life Care Business and an overall summary. The remaining time will be spent on Q&A, and we plan to end the meeting at 4:00 PM.

For those of you who are joining on your PC today, please see the materials that are shared on the screen.

CFO Hirooka will now give a presentation.

Hirooka: This is Hirooka, CFO. Thanks.

I will explain the results for this three-month period.

For the overall results, revenue was JPY146.9 billion, up JPY0.4 billion YoY. Pretax profit was JPY45.8 billion, up JPY7.5 billion, or 20%, YoY. Net profit was JPY36.9 billion, up JPY7.3 billion, or 25%, YoY.

The overall result was that revenue was flat, returning to the pre-COVID-19 level, while profits increased.

Next, here is the forex impact.

The impact from forex translation was negative JPY2.5 billion on revenue. Earlier, I mentioned that revenue was up JPY0.4 billion. On an actual basis, if forex were the same as last year, then revenue would be up JPY2.9 billion with an actual growth rate of 2%.

The impact was negative JPY1 billion for pretax profit and net profit, respectively. If JPY1 billion were added back to the figures explained earlier, then on an actual basis, pretax profit would be up JPY8.5 billion and net profit would be up JPY8.2 billion.

As you can see in the key currency table, the JPY appreciated against the USD and THB, while it depreciated against the EUR. Naturally, the JPY depreciating against the EUR would be positive for the Company, but this positive is more than offset by the JPY appreciating against the USD and THB in terms of profits.