HOYA : Quarterly Report for the three months ended Jun.30,2021

July 29, 2021

Quarterly Report

1st Quarter : 3 months ended June 30, 2021

Consolidated (HOYA CORPORATION and Consolidated Subsidiaries)

Part .1

1st Quarter : from April 1 to June 30, 2021

1. Quarterly Consolidated Financial Highlights : p.1
2. Results of Operations : p.2
3. Quarterly Consolidated Financial Statements
4. 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
5. Projected Results for the First Half (All Operations) : p.11
6. ＜Reference＞Supplementary data for 1st Quarter : p.12

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

July 29, 2021

1. Quarterly Consolidated Financial Highlights

HOYA CORPORATION and Consolidated Subsidiaries

1. Performance for the three months ended June 30, 2020 and 2021 (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	Jun. 30, 2020	Jun. 30, 2021		(%)
	Revenue	109,327	158,000		44.5
	Profit before tax	31,942	51,018		59.7
	Ratio of profit before tax(%)	29.2%	32.3%
	Profit for the quarter	25,629	41,299		61.1
	Ratio of profit for the quarter(%)	23.4%	26.1%
	Profit attributable to owners of the Company	25,884	41,258		59.4
	Ratio of profit attributable to owners of the Company(%)	23.7%	26.1%
	Basic earnings per share (yen)	69.06	111.83
	Diluted earnings per share (yen)	68.95	111.69
		As of
(2)Financial Position	Mar. 31, 2020	Jun. 30, 2021
	Total assets	853,290	867,336
	Total equity	672,412	690,767
	Equity attributable to owners of the Company	688,000	706,246
	Ratio of assets attributable to owners of the Company	80.6%	81.4%
	Assets attributable to owners of the Company per share (yen)	1,862.96	1,914.52
		Three months ended
(3) Conditions of Cash Flows	Jun. 30, 2020	Jun. 30, 2021
	Net cash generated from operating activities	10,779	43,783
	Net cash used in investing activities	-6,492	-9,362
	Free cash flow	4,287	34,421
	Net cash provided by (used in ) financing activities	-19,836	-24,455
	Cash and cash equivalents at end of period	301,513	345,777

2.Projected Results for the First Half (Six months ending September 30, 2021) for All Operations

		Six months ended/ending	Variance
		Sep. 30,2020	Sep. 30,2021	(%)
	Revenue	249,640	315,000	26.2
	Profit before tax	72,135	99,000	37.2
	Profit for the term	57,470	79,200	37.8
	Profit attributable to owners of the Company	57,730	79,200	37.2
	Profit for the term per share (Yen)	154.04	214.25	－

3.Other

		Three months ended
		Jun. 30, 2020	Jun. 30, 2021
	Capital expenditure	7,999	8,287
	R&D expenses	4,840	6,225

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.

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2. Results of Operations

1) General Overview

HOYA Group sales for the first quarter of the consolidated fiscal year under review (three months from April 1 to June 30, 2021) amounted to 158,000 million yen, an increase of 44.5% from the same period of the previous fiscal year (three months from April 1 to June 30, 2020).

Quarterly profit before tax amounted to 51,018 million yen, and quarterly profit amounted to 41,299 million yen, up 59.7% and 61.1% respectively.

The quarterly profit margin before tax was 32.3%, representing a year-on-year increase of 3.1 points.

Disclosed figures and change ratios are for businesses with continuing operations. There were no discontinued businesses in the first quarter or the same quarter of the previous year.

In the Life Care segment, sales of healthcare-related products such as eyeglass lenses and contact lenses increased significantly, and medical-related products such as medical endoscopes and intraocular lenses for cataracts also increased significantly. Overall, sales in the Life Care segment rose considerably.

In the Information Technology segment, sales of mask blanks for semiconductors for electronics-related products increased significantly, sales of photomasks for FPDs increased, and sales of glass substrates for hard disks grew strongly. Sales of imaging-related products increased significantly. As a result, overall sales in the Information Technology segment rose considerably.

2) Segment Overview

The following discusses results by reportable segment. (Segment sales represent sales to external customers.)

Life Care

Sales of eyeglass lenses and contact lenses increased significantly due to a recovery following the resumption of economic activities, compared to the same period of the previous fiscal year, when the impact of COVID-19 on business activities was largest.

Sales of eyeglass lenses were particularly strong in Europe and North America, and higher sales of high-value- added products also contributed to higher sales.

Contact lenses were affected by sales activities at Eyecity specialty retailers due to temporary closures at some stores and shortened sale hours in line with the declaration of an emergency situation in Japan. However, sales revenues were on a recovery trend, with home delivery services to Eyecity members trending steadily.

Sales of medical endoscopes and intraocular lenses for cataracts increased significantly due to a recovery following the resumption of economic activities, compared to the same period of the previous fiscal year, when the impact of COVID-19 on business activities was largest.

In the medical endoscopes business, there was a gradual recovery in capital investment in hospitals, and our sales were on a recovery trend.

In intraocular lenses for cataracts, there was a gradual recovery in the number of cataract operations, particularly overseas, and our sales were on a recovery trend.

As a result, sales in the Life Care segment amounted to 96,849 million yen, an increase of 56.4%. Segment profit increased by 111.7% to 21,843 million yen.

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Information Technology

Sales of mask blanks for semiconductors increased significantly due to brisk research and development in cutting-edge products, including products for EUV (Extreme Ultraviolet), and our capturing demand for the launch of mass-production.

As for photomasks for FPDs, there was a recovery in demand for photomasks for R&D in some areas, and our sales also recovered from a temporary drop, resulting in an increase in sales.

In hard disk glass substrates, sales of 3.5-inch products, which are expected to grow significantly in the future, increased vastly thanks to continued strong demand for near-line applications at end customers, which are data centers.

In addition, sales of 2.5-inch products increased due to the continued demand for external HDDs along with the increase in PC shipments by the impact of COVID-19 although the replacement of HDDs (Hard Disk Drive) with SSDs (Solid State Drive) continues.

For the overall segment, sales increased significantly.

In lenses for cameras, although the impact of erosion by smartphones continued for both digital compact cameras and interchangeable lenses, sales increased significantly due to a recovery following the resumption of economic activities compared to the same period of the previous fiscal year, when the impact of COVID-19 on business activities was largest.

As a result, sales in the Information Technology segment grew by 29.4% to 59,815 million yen. Segment profit increased by 38.6% to 30,042 million yen.

Other

The Other businesses consist mainly of speech synthesis software business, information system services business, and new businesses. Sales in the Other business increased by 12.7% to 1,336 million yen. Segment profit increased by 31.4% to 252 million yen.

3) Subsequent events

There are no subsequent events to be disclosed.

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3.Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Statement of Financial Position

(HOYA Corporation and its subsidiaries)							(Millions of Yen)
	As of		As of		Variance	As of
	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
	Amount		(%)	Amount		(%)	Amount	(%)	Amount		(%)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment-net	164,957			164,359			-598		153,148
Goodwill	35,688			35,717			29		41,803
Intangible assets	37,110			36,241			-868		38,524
Investments in associates	661			666			5		723
Long-term financial assets	52,005			50,480			-1,525		46,641
Other non-current assets	797			843			47		658
Deferred tax assets	7,488			7,983			495		6,825
Total non-current assets	298,705		35.0	296,289		34.2	-2,416	-0.8	288,322		36.6
CURRENT ASSETS
Inventories	77,367			79,871			2,504		79,711
Trade and other receivables	117,251			118,216			966		96,250
Other short-term financial assets	3,897			5,181			1,284		1,234
Income tax receivables	1,218			2,098			881		813
Other current assets	19,956			19,903			-53		19,764
Cash and cash equivalents	334,897			345,777			10,880		301,513
Total current assets	554,584		65.0	571,046		65.8	16,462	3.0	499,284		63.4
Total assets	853,290		100.0	867,336		100.0	14,046	1.6	787,606		100.0

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