1. January 31, 2011
QUARTERLY REPORT
3rd Quarter : 3 months ended December 31, 2010
Aggregated : 9 months ended December 31, 2010
Consolidated (HOYA CORPORATION and Consolidated Subsidiaries)
Part 1.
3rd Quarter : from October 1 to December 31, 2010
1. Quarterly Financial Highlights : p.1
2. Results of Operations : p.2
3. Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets : p.4
(2) Quarterly Consolidated Statements of Income : p.6
(3) Quarterly Consolidated Statements of Cash Flows : p.7
(4) Segment Information : p.8
(5) Composition of Net Sales by Business Category : p.10
Part 2.
Aggregated : from April 1 to December 31, 2010
1. Nine Months Financial Highlights : p.11
2. Consolidated Financial Statements
(1) Consolidated Balance Sheets : p.12
(2) Consolidated Statements of Income : p.14
(3) Consolidated Statements of Cash Flows : p.15
(4) Segment Information : p.16
(5) Composition of Net Sales by Business Category : p.17
3. Projected Results for the Full Year : p.18
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 in accordance with acc ounting principles and practices generally ac cepted in
J apan.
This report is provided s olely for the information of professional analysts who are expec ted to mak e 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 plac e undue reliance on them.
These forward-looking statements involve known and unknown risks , uncertainties and other factors that may cause our
actual results, performanc e 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 los s arising from any use of this report.
2. January 31, 2011
Part 1. 3rd Quarter : from October 1 to December 31, 2010
1. Quarterly Financial Highlights
HOYA CORPORATION and Consolidated Subsidiaries
1.Performance for the three months ended Dec. 31, 2010 and 2009
( The yen amounts shown herein are rounded down to the nearest million.)
Millions of Yen
Three months ended
Variance
(1)Results of Operations Dec.31,2010 Dec.31,2009 (%) Sep.30,2010
Net sales 108,449 106,878 1.5 107,075
Operating income 19,897 18,995 4.7 18,768
Ordinary income 17,997 19,724 -8.8 16,185
Net income 13,210 11,791 12.0 12,891
Net income per share(Yen) 30.62 27.24 29.88
As of
(2)Financial Position Dec.31,2010 Sep.30,2010 Dec.31,2009
Total assets 546,352 557,966 552,748
Net assets 346,079 353,813 340,881
Owners' equity ratio 62.9% 62.9% 61.3%
Net assets per share (Yen) 796.60 813.91 782.28
Three months ended
(3) Conditions of Cash Flows Dec.31,2010 Dec.31,2009 Sep.30,2010
Net cash provided by operating activities 16,953 22,898 26,233
Net cash used in investing activities -10,974 -16,309 -11,378
Net cash provided by (used in ) financing activities -14,052 -4,000 -10,205
Cash and cash equivalents at end of period 162,234 170,511 174,648
2.Dividends per Share
Year ending/ended
Mar.31,2011 Mar.31,2010
Interim (Yen) 30.00 30.00
Year-end (Yen) N/A 35.00
Annual (Yen) N/A 65.00
<New Item>
High-definition Endoscope EC38-i10
1
3. 2. Results of Operations
1) General Overview
During the 3rd quarter consolidated accounts period (from October 1, 2010 to
December 31, 2010; hereinafter the “quarter under review”), the global economy saw
certain recoveries mainly in emerging countries, while the economy in U.S. and
Europe remained clouded. In Japan, with the appreciation of the yen, the uncertainty
of economy increased specially among exporters.
Against this backcloth, given an increase in orders with the recovery in the market,
the HOYA group's production and shipments were higher compared with those for
the same quarter of the previous fiscal year, although sales were significantly
affected by lower product prices and the appreciation of the yen.
As a result, the HOYA group recorded sales of 108,449 million yen for the quarter
under review, up 1.5% year-on-year. Operating income rose 4.7%, to 19,897 million
yen, while ordinary income decreased 8.8%, to 17,997 million yen. Net income
amounted to 13,210 million yen, up 12.0% year-on-year basis.
2) Segment Overview
Information Technology
<Electronics related products>
As a general recovery in the semiconductor market globally continued thanks to
strong demand from emerging countries, the Company has achieved on a
certain volume of production and shipments during the quarter under review.
However, sales remained almost unchanged, attributable to a continued decline
in product prices and rapid appreciation of the yen.
There was a serious production adjustment in a laptop computor market during
the quarter under review and the market related to the hard disk drives (HDDs)
was affected significantly. However, the volume of shipment from the Company
jumped year on year basis and sales rose in spite of lower product prices linked
to the stronger yen.
<Imaging related products>
Sales of optical lenses were up from the year-ago period, reflecting robust
sales of digital cameras in the market, particularly in emerging countries, and
strong orders for high-precision lenses and for interchangeable lenses,
resulting in higher shipments of such products, while keeping factories at their
full production capacity.
In HOYA ’ s Pentax brand digital cameras, the number of single lens reflex
cameras sold rose from a year ago, reflecting continued robust demand for
entry-level cameras, which in turn resulted in higher sales of interchangeable
lenses.
As a result, sales of the Information Technology segment stood at 57,551 million
yen, up 1.4% year-on-year, and operating income amounted to 11,191 million yen,
up 1.1% year-on-year.
2
4. Life Care
<Healthcare related products>
Shipments of eyeglass lenses increased worldwide. However, given lower unit
sales prices in Japan, sales rose from the year-ago period. In the overseas
market, shipments rose year on year, and sales also climbed on a local
currency basis. However, with the significant impact of the appreciation of the
yen, sales in terms of the yen recorded slight decrease compared to the same
period last year.
Sales of contact lenses rose year on year with an increase in the number of
customers visiting stores, reflecting active consulting sales through directly-
owned stores, higher sales of high value-added products, and an increase in
the number of stores following aggressive expansion initiatives.
<Medical related products>
Shipments of medical endoscope products, in which overseas sales account
for a majority of overall sales, increased in comparison to the year-ago period,
as restriction of purchase for medical equipment has been getting relieved at
medical institutions in Europe and the U.S. The sales slightly increased year
on year though significant impact from the appreciation of the yen.
Sales of intraocular lenses (IOL) increased from the previous year, thanks to
the strong sales of soft lenses, which overcome the impact of the appreciation
of the yen.
As a result, sales of the Life Care segment stood at 50,494 million yen, up 1.9%
year-on-year, and operating income amounted to 10,280 million yen, up 6.9%
year-on-year.
Others
The Others segment mainly includes the business that provides information
system services and new businesses.
As a result, sales of the Others segment stood at 394 million yen, and operating
income amounted to 254 million yen.
(Note) Following the revision of the Accounting Standard and the Guidance on
Accounting Standard for Disclosures about Segments of an Enterprise and Related
Information, the Company has determined reported segments based on the above
accounting standard from the 1st quarter period of this fiscal year.
3
5. 3. Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
HOYA CORPORATION and Consolidated Subsidiaries Millions of Yen
As of
Dec.31,2010 Sep.30,2010 Variance Dec.31,2009
ASSETS
Current assets
Cash and deposits 178,132 180,962 -2,830 174,875
Notes and accounts receivable - trade 91,077 88,550 2,527 93,608
Securities 10,000 10,000 - -
Merchandise and finished goods 30,046 31,690 -1,644 28,539
Work in process 7,633 8,183 -550 8,964
Raw materials and supplies 23,683 22,382 1,301 25,620
Deferred tax assets 6,449 7,763 -1,314 5,427
Other current assets 11,736 10,577 1,159 11,027
Allowance for doubtful receivables -1,495 -1,543 48 -1,839
Total current assets 357,265 358,568 -1,303 346,224
Fixed asstes
Tangible fixed assets
Buildings and structures (net) 34,519 33,990 529 35,507
Machinery and vehicles (net) 32,625 33,642 -1,017 41,598
Tools, equipment and fixtures (net) 15,980 16,185 -205 15,851
Lands 16,703 17,135 -432 14,383
Construction in progress 14,013 12,121 1,892 9,276
Total tangible fixed assets 113,842 113,076 766 116,617
Intangible fixed assets 18,017 18,931 -914 25,644
Investments and other assets
Investment securities 22,089 21,837 252 9,984
Deferred tax assets 27,963 28,359 -396 37,151
Other assets 7,530 17,571 -10,041 17,628
Allowance for doubtful receivables -356 -377 21 -502
Total investment and other assets 57,226 67,390 -10,164 64,262
Total fixed assets 189,087 199,397 -10,310 206,524
TOTAL ASSETS 546,352 557,966 -11,614 552,748
4
6. HOYA CORPORATION and Consolidated Subsidiaries Millions of Yen
As of
Dec.31,2010 Sep.30,2010 Variance Dec.31,2009
LIABILITIES
Current liabilities
Notes and accounts payable - trade 40,273 39,969 304 36,251
Short-term debt 285 302 -17 382
Long-term loans scheduled for repayment within a year 1,760 1,897 -137 3,615
Commercial paper - - - 9,997
Accrued expenses 16,822 15,247 1,575 18,510
Income tax payable 2,451 4,455 -2,004 4,919
Accrued bonuses to employees 3,070 5,549 -2,479 2,437
Accrued bonuses for directors - - - 38
Accrued warranty cost 845 809 36 749
Other current liabilities 22,248 22,177 71 18,996
Total current liabililties 87,757 90,410 -2,653 95,898
Long-term liabilities
Corporate bonds 99,983 99,981 2 99,977
Long-term loans payable 457 1,365 -908 2,423
Allowance for retirement benefits for employees 8,221 8,290 -69 8,182
Reserve for special repairs 979 1,070 -91 1,223
Other long-term liabilities 2,874 3,034 -160 4,161
Total long-term liabilities 112,515 113,742 -1,227 115,968
Total Liabilities 200,273 204,152 -3,879 211,867
NET ASSETS
Shareholders' equity
Common stock 6,264 6,264 - 6,264
Capital surplus 15,898 15,898 - 15,898
Retained earnings 396,800 396,536 264 365,958
Treasury stock - at cost -10,985 -10,992 7 -7,972
Total shareholders' equity 407,977 407,706 271 380,148
Valuation and translation adjustments
Net unrealized gain (loss) on other marketable securities 122 -125 247 -219
Foreign currency translation adjustments -64,441 -56,458 -7,983 -41,309
Total valuation and translation adjustments -64,319 -56,583 -7,736 -41,529
Stock acquisition rights 1,630 1,531 99 1,183
Minority interest 790 1,158 -368 1,078
Total Net Assets 346,079 353,813 -7,734 340,881
TOTAL LIABILITIES AND NET ASSETS 546,352 557,966 -11,614 552,748
Notes: Millions of Yen
1. Guarantees of borrowings and lease obligations for
customers and Group's employees 1,451 1,531 1,654
2. Value of discount on notes receivable 1,089 552 944
3. Number of shares of treasury stock (unit:stocks) 3,609,940 3,611,738 2,157,112
5
7. (2) Quarterly Consolidated Statements of Income Millions of Yen
HOYA CORPORATION and Consolidated Subsidiaries Three months ended
Variance
Dec.31, 2010 Dec.31, 2009 Value (%) Sep.30, 2010
Net sales 108,449 106,878 1,571 1.5 107,075
Cost of sales 59,467 58,595 872 1.5 58,967
Gross profit 48,982 48,283 699 1.4 48,107
Selling, general and administrative expenses 29,084 29,288 -204 -0.7 29,338
Operating income 19,897 18,995 902 4.7 18,768
Non-operating income
Interest income 218 173 45 204
Equity in earnings of associated companies 152 - 152 99
Others 536 1,750 -1,214 871
Total non-operating income 907 1,923 -1,016 -52.8 1,175
Non-operating expenses
Interest expense 497 470 27 461
Equity in loss of associated companies - 278 -278 -
Loss on foreign exchange 1,885 - 1,885 2,549
Others 425 445 -20 748
Total non-operating expenses 2,808 1,194 1,614 135.2 3,759
Ordinary income 17,997 19,724 -1,727 -8.8 16,185
Extra-ordinary gains
Gain on sales of property, plant and equipment 42 148 -106 31
Others 5 46 -41 46
Total extra-ordinary gains 47 195 -148 -75.9 78
Extra-ordinary losses
Loss on sales of property, plant and equipment 29 332 -303 2
Loss on disposal of property, plant and equipment 55 88 -33 118
Loss on impairment - 457 -457 -
Loss on write-down of investment securities 10 129 -119 73
Additional retirement benefits paid to employees 1,267 380 887 523
Loss on liquidation of subsidiaries 1,068 - 1,068 -
Expense for improvements on environment - 1,770 -1,770 271
Others 27 1,784 -1,757 176
Total extra-ordinary losses 2,458 4,944 -2,486 -50.3 1,164
Income before income taxes and minority interests 15,586 14,975 611 4.1 15,099
Income taxes - Current 1,335 2,181 -846 -38.8 1,231
Income taxes - Deferred 1,321 951 370 38.9 950
Total income taxes 2,657 3,132 -475 -15.2 2,181
Income before minority interests 12,928 - 12,928 - 12,917
Minority interests in net income -281 51 -332 -651.0 26
Net income 13,210 11,791 1,419 12.0 12,891
Net income per share(Yen) 30.62 27.24 3.38 29.88
Net income per share after adjustment of potential shares(Yen 30.60 27.21 3.39 29.87
Notes:
1. Effect of Exchange Rate Change on Net Sales and Incomes ("2010 A" is the actual value of this period. " 2010 B" is the nominal
value of this period which temporarily exchanged by the currency rate of the same period last year. unit : millions of Yen)
2010 A 2010 B influences
Net sales 108,449 114,011 -5,562
Operating income 19,897 20,523 -626
Ordinary income 17,997 18,688 -691
Net income 13,210 13,795 -585
Three months ended
2. Average rates of major foreign currencies Dec.31, 2010 Dec.31, 2009 Variance Sep.30, 2010
US$ Yen 82.22 90.12 8.8% 85.03
Euro Yen 110.39 132.60 16.8% 111.45
Thai Baht Yen 2.73 2.70 -1.1% 2.72
6
8. (3) Quarterly Consolidated Statements of Cash Flows
HOYA CORPORATION and Consolidated Subsidiaries Millions of Yen
Three months ended
Dec.31,2010 Dec.31,2009 variance Sep.30,2010
OPERATING ACTIVITIES:
Income before income taxes and minority interests 15,586 14,975 611 15,099
Depreciation and amortization 7,798 8,748 -950 7,621
Loss on impairment of long-lived assets - 457 -457 -
Provision for (reversal of ) accrued allowances for doubtful receivables -34 -854 820 -0
Provision for (reversal of ) accrued bonuses to employees -2,459 -1,960 -499 2,669
Provision for (reversal of ) reserve for special repairs -91 -25 -66 80
Provision for (reversal of ) reserve for retirement benefit -41 -73 32 59
Interest and dividend income -226 -178 -48 -203
Interest expense 497 470 27 461
Foreign exchange loss (gain) 372 253 119 1,366
Equity in (earnings) losses of affiliates -152 278 -430 -99
Gain (loss) on sales of fixed assets -12 183 -195 -29
Loss on disposal of fixed assets 55 88 -33 118
Loss (gain) on evaluation of investment securities 10 129 -119 73
Special additional retirement benefits paid to employees 1,267 380 887 523
(Increase) decrease in notes and accounts receivable -3,498 -2,942 -556 -996
(Increase) decrease in inventories -246 -1,529 1,283 -3,522
(Increase) decrease in other current assets 198 2,096 -1,898 -2,421
Increase (decrease) in notes and accounts payable 795 3,248 -2,453 7,613
Increase (decrease) in income taxes payable 139 -548 687 -139
Increase (decrease) in other current liabilities 2,374 4,739 -2,365 -1,028
Other 46 -16 62 1
Sub total 22,379 27,923 -5,544 27,246
Interest and dividend - received 285 220 65 179
Interest - paid -67 -46 -21 -865
Special additional retirement benefits paid to employees - paid -644 -1,166 522 -251
Income taxes - paid -5,033 -4,033 -1,000 -1,409
Refund of income taxes 33 - 33 1,334
Net cash provided by operating activities 16,953 22,898 -5,945 26,233
INVESTING ACTIVITIES:
Payments for time deposit -10 -949 939 -1,268
Proceeds from refund of time deposit 336 6 330 580
Payments for purchases of securities - - - -10,000
Payments for purchases of property, plant and equipment -11,325 -4,929 -6,396 -10,908
Proceeds from sales of property, plant and equipment 393 1,068 -675 257
Payments for purchases of investment securities - - - -10,000
Proceeds from sales of investment securities - 42 -42 -
Payments for acquisition of subsidiary's stocks for consolidation - -154 154 -
Payments on merger to minority shareholders -1 -12 11 -10
Proceeds from business transfer - - - 20,653
Payments for other investments -536 -11,577 11,041 -834
Proceeds from other investments 170 196 -26 152
Net cash used in investing activities -10,974 -16,309 5,335 -11,378
FINANCING ACTIVITIES:
Net increase (decrease) in short-term bank loans -17 -132 115 17
Net increase (decrease) in commercial paper - 9,997 -9,997 -7,998
Repayments of long-term debt -1,016 -19 -997 -1,717
Proceeds from exercise of stock options 4 6 -2 -
Payments for purchase of treasury stock -2 -0 -2 -1
Dividends paid -12,952 -13,141 189 -505
Dividends paid for minority shareholders -69 - -69 -
Payments for purchase of subsidiary's treasury stock - -709 709 -
Net cash provided by (used in) financing activities -14,052 -4,000 -10,052 -10,205
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS -4,340 1,734 -6,074 1,490
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -12,414 4,323 -16,737 6,140
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 174,648 166,187 8,461 168,507
CASH AND CASH EQUIVALENTS, END OF PERIOD 162,234 170,511 -8,277 174,648
Notes: 1. Negativ e figures with minus in the consolidated statements of cash flows indicate net outflow of cash and cash equivalents.
2. The above statements are direct translation from Kessan Tanshin whic h was made under the Japanese Accounting Standard.
7
9. (4) Segment Information
HOYA CORPORATION and Consolidated Subsidiaries
for the three months ended Dec. 31, 2010
Millions of Yen
Information Elimination Consoli-
Life Care Others Total or corporate dated
Technology
Net sales:
To outside customers 57,551 50,494 394 108,440 9 108,449
Intersegment 148 0 890 1,039 -1,039 -
Total 57,700 50,494 1,284 109,479 -1,030 108,449
Operating income 11,191 10,280 254 21,726 -1,828 19,897
Operating margin 19.4% 20.4% 19.8% 19.8% - 18.3%
for the three months ended Dec. 31, 2009
Millions of Yen
Information Elimination Consoli-
Life Care Others Total or corporate dated
Technology
Net sales:
To outside customers 56,770 49,559 549 106,878 - 106,878
Intersegment 38 5 947 990 -990 -
Total 56,808 49,564 1,496 107,869 -990 106,878
Operating income 11,067 9,620 60 20,748 -1,753 18,995
Operating margin 19.5% 19.4% 4.0% 19.2% - 17.8%
Ref : Difference between the 3rd quarter this year and the same quarter last year
Millions of Yen
Information Elimination Consoli-
Life Care Others Total or corporate dated
Technology
Net sales:
To outside customers 781 935 -155 1,562 9 1,571
Variance (%) 1.4% 1.9% -28.2% 1.5% - 1.5%
Intersegment 110 -5 -57 49 -49 -
Total 892 930 -212 1,610 -40 1,571
Operating income 124 660 194 978 -75 902
Variance (%) 1.1% 6.9% 323.3% 4.7% 4.3% 4.7%
Re: The Company has changed the segmentation from this fiscal year. The results of the same period
last year were re-classificated by the new segmentation policy:
8
10. Notes:
1. Following the revision of the Accounting Standard and the Guidance on Accounting Standard for Disclosures
about Segments of an Enterprise and Related Information from the quarter accounts period under review,
the Company has determined reported segments based on the above accounting standard.
<Overview of reported segments>
The reported segments of the Company are constituent units of the Company for which separate financial
information can be obtained, and the Board of Directors, top organization for decision making on the
management, examines such information on a regular basis to determine the allocation of management
resources and evaluate the business performance.
In accordance with its management philosophy, the HOYA Group has categorized information technology
and life and culture 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 operating results.
As a result, the Hoya Group consists of three reported segments: the Information Technology business,
the Life Care business and the Others business, which are consistent with the above business domains.
In the Information Technology business, the Group is engaged in an extensive group of application
products that have been developed following the digitalization of information and the emergence of the
internet.
The Group produces and sells a broad array of I/O related products (Input/Outpur Device) in the
information and communication sector, including electronics-related products that are essential for the
modern digital information and communication technologies, and image-related products that are necessary
to import picture and video images as digital information based on optical technologies.
In the Life Care business, the Group produces and sells healthcare related products that are used in the
healthcare and medical sectors on a daily basis, and medical products, including medical equipment and
medical materials that are used in medical treatments. In operating this business, approvals and
permissions typically need to be obtained in accordance with the Pharmaceutical Affairs Act and other
regulations, so that sophisticated technologies and highly reliable quality control systems are the critical
elements for operating this business.
The Others business mainly includes the business that provides information system services and new
businesses.
The main products and services of the reported segment that have been determined in the manner
described above are as follows:
The new classification from this fiscal year "reported segment" is as follows:
Business Segment Products and Services
Photomasks and Maskblanks for semiconductors,
Electronics related products Masks and Devices for liquid-crystal displays (LCDs)
Information Glass disks for hard disk drives (HDDs), etc.
Technology Optical lenses, optical glasses,
Imaging related products Degital cameras, Interchangeable lenses,
Digital camera modules, Optical Devices, Lazer equipments, etc.
Health Care related products Eyeglass lenses, Contact lenses, etc.
Life Care
Medical related products Endoscopes, Intraocular lenses, Artificial bone, etc.
Others Design of information systems, etc.
2. Others
Following the revision of the Accounting Standard and the Guidance on Accounting Standard for Disclosures
about Segments of an Enterprise and Related Information, the Company will disclose information about
geographical segments or overseas sales as information associated with regions, which are disclosure
items of related information at the time of the (full-year) settlement of results.
9
11. (5) Composition of Net Sales by Business Category
HOYA CORPORATION and Consolidated Subsidiaries
Millions of Yen
Three months ended Three months ended
Variance (%)
Business Category Dec.31, 2010 Dec.31, 2009 Sep. 30, 2010
Information Technology
Domestic 18,253 ( 31.7 ) 17,575 ( 31.0 ) 678 3.9 18,232 ( 32.4 )
Overseas 39,298 ( 68.3 ) 39,195 ( 69.0 ) 103 0.3 38,050 ( 67.6 )
total 57,551 [ 53.1 ] 56,770 [ 53.1 ] 781 1.4 56,282 [ 52.5 ]
Life Care
Domestic 22,079 ( 43.7 ) 20,391 ( 41.1 ) 1,688 8.3 23,116 ( 45.9 )
Overseas 28,414 ( 56.3 ) 29,167 ( 58.9 ) -753 -2.6 27,272 ( 54.1 )
total 50,494 [ 46.6 ] 49,559 [ 46.4 ] 935 1.9 50,388 [ 47.1 ]
Others
Domestic 246 ( 62.4 ) 350 ( 63.8 ) -104 -29.7 238 ( 60.9 )
Overseas 147 ( 37.6 ) 199 ( 36.2 ) -52 -26.1 153 ( 39.1 )
total 394 [ 0.3 ] 549 [ 0.5 ] -155 -28.2 391 [ 0.4 ]
Corporate
Domestic - ( - ) - ( -) - - - ( -)
Overseas 9 ( 100.0 ) 0 ( 100.0 ) 9 - 13 ( 100.0 )
total 9 [ 0.0 ] 0 [ 0.0 ] 9 - 13 [ 0.0 ]
Total Net Sales
Domestic 40,579 ( 37.4 ) 38,317 ( 35.9 ) 2,262 5.9 41,586 ( 38.8 )
Overseas 67,870 ( 62.6 ) 68,561 ( 64.1 ) -691 -1.0 65,489 ( 61.2 )
Total 108,449 [ 100.0 ] 106,878 [ 100.0 ] 1,571 1.5 107,075 [ 100.0 ]
Notes:
1. The Company has changed the segmentation from this fiscal year. The results of the same
period last year were re-classificated by the new segmentation policy.
2. Figures of less than a million yen are omitted.
3. Figures in ( ) are percentages of business category sales.
4. Figures in [ ] are percentages of total net sales.
10
12. January 31, 2011
Part 2. Nine Months : from April 1 to December 31, 2010
1. Nine Months Financial Highlights
HOYA CORPORATION and Consolidated Subsidiaries
1.Performance for the nine months ended Dec. 31, 2010 and 2009
( The yen amounts shown therein are rounded down to the nearest million.)
Nine months ended Variance Year ended
(1)Results of Operations Dec.31,2010 Dec.31,2009 (%) Mar.31,2010
Net sales 321,117 308,685 4.0 413,524
Operating income 58,805 46,999 25.1 64,327
Ordinary income 51,643 40,793 26.6 57,805
Net income 47,126 25,993 81.3 37,875
Net income per share(Yen) 109.24 60.05 87.52
As of
(2)Financial Position Dec.31,2010 Mar.31,2010 Dec.31,2009
Total assets 546,352 549,736 552,748
Net assets 346,079 351,472 340,881
Owners' equity ratio 62.9% 63.5% 61.3%
Net assets per share (Yen) 796.60 809.12 782.28
Nine months ended Year ended
(3) Conditions of Cash Flows Dec.31,2010 Dec.31,2009 Mar.31,2010
Net cash provided by operating activities 71,097 59,178 83,981
Net cash used in investing activities -32,007 -27,945 -40,723
Net cash provided by (used in ) financing activities -30,884 -70,848 -84,976
Cash and cash equivalents at end of period 162,234 170,511 167,938
2.Dividends per Share
Years ending/ended
Mar.31,2011 Mar.31,2010
Interim (Yen) 30.00 30.00
Year-end (Yen) N/A 35.00
Annual (Yen) N/A 65.00
3.Projected Results for the Year ending March 31, 2011
Years ending/ended Variance
Mar.31,2011 Mar.31,2010 (%)
Net sales 423,000 413,524 2.3
Operating income 75,000 64,327 16.6
Ordinary income 67,000 57,805 15.9
Net income 57,000 37,875 50.5
Net income per share (Yen) 132.13 87.52 44.61
Note:
To calculate expected net income per share, expected net income is devided by expected average number of
shares through the term.
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.
11
13. 2. Consolidated Financial Statements
(1) Consolidated Balance Sheets
HOYA CORPORATION and Consolidated Subsidiaries Millions of Yen
As of
Dec.31,2010 Mar.31,2010 Variance Dec.31,2009
ASSETS
Current assets
Cash and deposits 178,132 173,307 4,825 174,875
Notes and accounts receivable - trade 91,077 93,612 -2,535 93,608
Securities 10,000 - 10,000 -
Merchandise and finished goods 30,046 26,590 3,456 28,539
Work in process 7,633 8,804 -1,171 8,964
Raw materials and supplies 23,683 26,070 -2,387 25,620
Deferred tax assets 6,449 5,973 476 5,427
Other current assets 11,736 12,713 -977 11,027
Allowance for doubtful receivables -1,495 -1,825 330 -1,839
Total current assets 357,265 345,247 12,018 346,224
Fixed asstes
Tangible fixed assets
Buildings and structures (net) 34,519 36,957 -2,438 35,507
Machinery and vehicles (net) 32,625 38,715 -6,090 41,598
Tools, equipment and fixtures (net) 15,980 15,793 187 15,851
Lands 16,703 15,817 886 14,383
Construction in progress 14,013 11,905 2,108 9,276
Total tangible fixed assets 113,842 119,189 -5,347 116,617
Intangible fixed assets 18,017 24,569 -6,552 25,644
Investments and other assets
Investment securities 22,089 11,054 11,035 9,984
Deferred tax assets 27,963 32,656 -4,693 37,151
Other assets 7,530 17,523 -9,993 17,628
Allowance for doubtful receivables -356 -504 148 -502
Total investment and other assets 57,226 60,730 -3,504 64,262
Total fixed assets 189,087 204,489 -15,402 206,524
TOTAL ASSETS 546,352 549,736 -3,384 552,748
12
14. HOYA CORPORATION and Consolidated Subsidiaries Millions of Yen
As of
Dec.31,2010 Mar.31,2010 Variance Dec.31,2009
LIABILITIES
Current liabilities
Notes and accounts payable - trade 40,273 33,128 7,145 36,251
Short-term debt 285 334 -49 382
Long-term loans scheduled for repayment within a year 1,760 3,277 -1,517 3,615
Commercial paper - - - 9,997
Accrued expenses 16,822 16,151 671 18,510
Income tax payable 2,451 4,469 -2,018 4,919
Accrued bonuses to employees 3,070 4,717 -1,647 2,437
Accrued bonuses for directors - - - 38
Accrued warranty cost 845 879 -34 749
Other current liabilities 22,248 21,031 1,217 18,996
Total current liabililties 87,757 83,989 3,768 95,898
Long-term liabilities
Corporate bonds 99,983 99,978 5 99,977
Long-term loans payable 457 1,829 -1,372 2,423
Allowance for retirement benefits for employees 8,221 8,244 -23 8,182
Reserve for special repairs 979 917 62 1,223
Other long-term liabilities 2,874 3,304 -430 4,161
Total long-term liabilities 112,515 114,274 -1,759 115,968
Total Liabilities 200,273 198,264 2,009 211,867
NET ASSETS
Shareholders' equity
Common stock 6,264 6,264 - 6,264
Capital surplus 15,898 15,898 - 15,898
Retained earnings 396,800 377,727 19,073 365,958
Treasury stock - at cost -10,985 -11,010 25 -7,972
Total shareholders' equity 407,977 388,879 19,098 380,148
Valuation and translation adjustments
Net unrealized gain (loss) on other marketable securities 122 147 -25 -219
Foreign currency translation adjustments -64,441 -39,974 -24,467 -41,309
Total valuation and translation adjustments -64,319 -39,827 -24,492 -41,529
Stock acquisition rights 1,630 1,231 399 1,183
Minority interest 790 1,188 -398 1,078
Total Net Assets 346,079 351,472 -5,393 340,881
TOTAL LIABILITIES AND NET ASSETS 546,352 549,736 -3,384 552,748
Notes: Millions of Yen
1. Guarantees of borrowings and lease obligations for
customers and Group's employees 1,451 1,632 1,654
2. Value of discount on notes receivable 1,089 427 944
3. Number of shares of treasury stock (unit:stocks) 3,609,940 3,617,264 2,157,112
13
15. (2) Consolidated Statements of Income
HOYA CORPORATION and Consolidated Subsidiaries Millions of Yen
Nine months ended Variance Year ended
Dec.31, 2010 Dec.31, 2009 Value (%) Mar.31, 2010
Net sales 321,117 308,685 12,432 4.0 413,524
Cost of sales 173,178 174,985 -1,807 -1.0 233,075
Gross profit 147,939 133,699 14,240 10.7 180,449
Selling, general and administrative expenses 89,133 86,700 2,433 2.8 116,121
Operating income 58,805 46,999 11,806 25.1 64,327
Non-operating income
Interest income 581 624 -43 831
Equity in earnings of associated companies 538 - 538 255
Others 2,208 3,617 -1,409 4,560
Total non-operating income 3,328 4,242 -914 -21.5 5,647
Non-operating expenses
Interest expense 1,461 1,692 -231 2,205
Equity in loss of associated companies - 873 -873 -
Loss on foreign exchange 7,370 5,821 1,549 6,488
Depreciation and amortization - - - 417
Others 1,658 2,061 -403 3,057
Total non-operating expenses 10,491 10,448 43 0.4 12,169
Ordinary income 51,643 40,793 10,850 26.6 57,805
Extra-ordinary gains
Gain on sales of property, plant and equipment 98 255 -157 287
Gain on business transfer 10,342 - 10,342 -
Received commission for previous years - - - 1,013
Others 651 77 574 222
Total extra-ordinary gains 11,093 333 10,760 - 1,523
Extra-ordinary losses
Loss on sales of property, plant and equipment 36 637 -601 658
Loss on disposal of property, plant and equipment 1,862 266 1,596 1,012
Loss on impairment - 789 -789 833
Loss on write-down of investment securities 361 253 108 586
Additional retirement benefits paid to employees 1,946 1,691 255 1,932
Loss on liquidation of subsidiaries 1,068 - 1,068 -
Influence from application of new accounting standard 905 - 905 -
Expense for improvements on environment 579 2,246 -1,667 1,882
Loss regarding Antimonopoly Act - - - 1,446
Others 172 2,124 -1,952 1,215
Total extra-ordinary losses 6,932 8,010 -1,078 -13.5 9,568
Income before income taxes and minority interests 55,804 33,116 22,688 68.5 49,761
Income taxes - Current 4,173 6,642 -2,469 -37.2 7,127
Income taxes - Deferred 4,725 316 4,409 - 4,461
Total income taxes 8,898 6,959 1,939 27.9 11,589
Income before minority interests 46,905 - 46,905 - -
Minority interests in net income -221 163 -384 -235.6 296
Net income 47,126 25,993 21,133 81.3 37,875
Net income per share(Yen) 109.24 60.05 49.19 87.52
Net income per share after adjustment of potential shares(Yen 109.17 60.00 49.17 87.44
Notes:
1. Effect of Exchange Rate Change on Net Sales and Incomes ("2010 A" is the actual value of this period. " 2010 B" is the nominal
value of this period which temporarily exchanged by the currency rate of the same period last year. unit : millions of Yen)
2010 A 2010 B influences
Net sales 321,117 335,064 -13,947
Operating income 58,805 60,675 -1,870
Ordinary income 51,643 53,787 -2,144
Net income 47,126 49,153 -2,027
Nine months ended Year ended
2. Average rates of major foreign currencies Dec.31, 2010 Dec.31, 2009 Variance(% ) Mar.31, 2010
US$ Yen 86.18 93.23 7.6% 92.61
Euro Yen 112.22 133.01 15.6% 130.68
Thai Baht Yen 2.75 2.75 0.0% 2.75
14
16. (3) Consolidated Statements of Cash Flows
HOYA CORPORATION and Consolidated Subsidiaries Millions of Yen
Nine months ended Year ended
Dec.31,2010 Dec.31,2009 variance Mar.31,2010
OPERATING ACTIVITIES:
Income before income taxes and minority interests 55,804 33,116 22,688 49,761
Depreciation and amortization 23,606 25,552 -1,946 34,503
Loss on impairment of long-lived assets - 789 -789 833
Provision for (reversal of ) accrued allowances for doubtful receivables -319 -915 596 -889
Provision for (reversal of ) accrued bonuses to employees -1,596 -2,323 727 -49
Provision for (reversal of ) reserve for special repairs 61 224 -163 -81
Provision for (reversal of ) reserve for retirement benefit 89 -324 413 -282
Interest and dividend income -637 -679 42 -885
Interest expense 1,461 1,692 -231 2,205
Foreign exchange loss (gain) 2,707 6,589 -3,882 6,975
Equity in (earnings) losses of affiliates -538 873 -1,411 -255
Gain (loss) on sales of fixed assets -62 382 -444 370
Loss on disposal of fixed assets 1,862 266 1,596 1,012
Loss (gain) on evaluation of investment securities 361 253 108 586
Gain (loss) on transfer of business -10,342 - -10,342 -
Special additional retirement benefits paid to employees 1,946 1,691 255 1,932
(Increase) decrease in notes and accounts receivable -1,968 -10,118 8,150 -10,829
(Increase) decrease in inventories -7,571 7,903 -15,474 9,990
(Increase) decrease in other current assets -1,517 -1,291 -226 -1,743
Increase (decrease) in notes and accounts payable 9,140 6,631 2,509 3,499
Increase (decrease) in income taxes payable 330 609 -279 651
Increase (decrease) in other current liabilities 6,084 2,913 3,171 3,747
Other 37 -36 73 -57
Sub total 78,939 73,799 5,140 100,996
Interest and dividend - received 640 745 -105 900
Interest - paid -1,009 -1,227 218 -2,037
Special additional retirement benefits paid to employees - paid -1,419 -6,163 4,744 -6,799
Income taxes - paid -7,422 -9,545 2,123 -10,726
Refund of income taxes 1,368 1,570 -202 1,648
Net cash provided by operating activities 71,097 59,178 11,919 83,981
INVESTING ACTIVITIES:
Payments for time deposit -2,288 -2,341 53 -3,156
Proceeds from refund of time deposit 1,257 4,700 -3,443 4,652
Payments for purchases of securities -10,000 - -10,000 -
Payments for purchases of property, plant and equipment -30,250 -15,224 -15,026 -26,650
Proceeds from sales of property, plant and equipment 972 1,893 -921 2,049
Payments for purchases of investment securities -10,569 - -10,569 -
Proceeds from sales of investment securities - 42 -42 42
Payments for acquisition of subsidiary's stocks for consolidation - -3,422 3,422 -3,422
Payments on merger to minority shareholders -20 -72 52 -84
Proceeds from business transfer 20,653 - 20,653 -
Payments for other investments -2,196 -14,107 11,911 -14,892
Proceeds from other investments 433 586 -153 739
Net cash used in investing activities -32,007 -27,945 -4,062 -40,723
FINANCING ACTIVITIES:
Net increase (decrease) in short-term bank loans -48 -1,761 1,713 -1,810
Net increase (decrease) in commercial paper - -31,980 31,980 -41,978
Proceeds from long-term bank loans - 225 -225 225
Repayments of long-term debt -2,756 -8,212 5,456 -9,144
Proceeds from exercise of stock options 14 - 14 110
Proceeds from sales of treasury stock - 6 -6 0
Payments for purchase of treasury stock -4 -2 -2 -3,275
Dividends paid -28,020 -28,254 234 -28,236
Dividends paid for minority shareholders -69 -158 89 -158
Payments for purchase of subsidiary's treasury stock - -709 709 -709
Net cash provided by (used in) financing activities -30,884 -70,848 39,964 -84,976
EFFECT OF EXCHANGE RATE CHAN GES ON CASH AND CASH EQUIVALENTS -13,909 2,197 -16,106 1,728
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -5,704 -37,416 31,712 -39,989
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 167,938 207,928 -39,990 207,928
CASH AND CASH EQUIVALENTS, END OF PERIOD 162,234 170,511 -8,277 167,938
Notes: 1. Negativ e figures with minus in the consolidated statements of cash flows indicate net outflow of cash and c ash equivalents .
2. The above statements are direct translation from Kessan Tanshin which was made under the Japanese Accounting Standard.
15
17. (4) Segment Information
HOYA CORPORATION and Consolidated Subsidiaries
for the nine months ended Dec. 31, 2010
Millions of Yen
Information Elimination Consoli-
Life Care Others Total or corporate dated
Technology
Net sales:
To outside customers 169,481 150,455 1,158 321,095 22 321,117
Intersegment 413 12 2,642 3,068 -3,068 -
Total 169,894 150,468 3,800 324,163 -3,045 321,117
Operating income 34,516 29,396 601 64,514 -5,709 58,805
Operating margin 20.3% 19.5% 15.8% 19.9% - 18.3%
for the nine months ended Dec. 31, 2009
Millions of Yen
Information Elimination Consoli-
Life Care Others Total or corporate dated
Technology
Net sales:
To outside customers 158,608 148,189 1,886 308,684 0 308,685
Intersegment 81 18 2,911 3,012 -3,012 -
Total 158,689 148,208 4,798 311,696 -3,011 308,685
Operating income 23,558 28,668 89 52,316 -5,317 46,999
Operating margin 14.8% 19.3% 1.9% 16.8% - 15.2%
Ref : Difference between the nine months of this year and the same period last year
Millions of Yen
Information Elimination Consoli-
Life Care Others Total or corporate dated
Technology
Net sales:
To outside customers 10,873 2,266 -728 12,411 22 12,432
Variance (%) 6.9% 1.5% -38.6% 4.0% - 4.0%
Intersegment 332 -6 -269 56 -56 -
Total 11,205 2,260 -998 12,467 -34 12,432
Operating income 10,958 728 512 12,198 -392 11,806
Variance (%) 46.5% 2.5% 575.3% 23.3% 7.4% 25.1%
Re: The Company has changed the segmentation from this fiscal year. The results of the same period
last year were re-classificated by the new segmentation policy:
16
18. (5) Composition of Net Sales by Business Category
HOYA CORPORATION and Consolidated Subsidiaries
Millions of Yen
Nine months ended Year ended
Variance (%)
Business Category Dec.31, 2010 Dec.31, 2009 Mar. 31, 2010
Information Technology
Domestic 53,642 ( 31.7 ) 50,794 ( 32.0 ) 2,848 5.6 68,469 ( 32.2 )
Overseas 115,838 ( 68.3 ) 107,813 ( 68.0 ) 8,025 7.4 143,859 ( 67.8 )
total 169,481 [ 52.7 ] 158,608 [ 51.4 ] 10,873 6.9 212,328 [ 51.3 ]
Life Care
Domestic 66,491 ( 44.2 ) 61,712 ( 41.6 ) 4,779 7.7 82,270 ( 41.4 )
Overseas 83,964 ( 55.8 ) 86,476 ( 58.4 ) -2,512 -2.9 116,633 ( 58.6 )
total 150,455 [ 46.8 ] 148,189 [ 48.0 ] 2,266 1.5 198,903 [ 48.1 ]
Others
Domestic 672 ( 58.0 ) 1,291 ( 68.5 ) -619 -47.9 1,526 ( 66.6 )
Overseas 485 ( 42.0 ) 595 ( 31.5 ) -110 -18.5 763 ( 33.4 )
total 1,158 [ 0.5 ] 1,886 [ 0.6 ] -728 -38.6 2,290 [ 0.6 ]
Corporate
Domestic - ( -) - ( -) - - - ( -)
Overseas 22 ( 100.0 ) 0 ( 100.0 ) 22 - 2 ( 100.0 )
total 22 [ 0.0 ] 0 [ 0.0 ] 22 - 2 [ 0.0 ]
Total Net Sales
Domestic 120,806 ( 37.6 ) 113,799 ( 36.9 ) 7,007 6.2 152,266 ( 36.8 )
Overseas 200,310 ( 62.4 ) 194,885 ( 63.1 ) 5,425 2.8 261,258 ( 63.2 )
Total 321,117 [ 100.0 ] 308,685 [ 100.0 ] 12,432 4.0 413,524 [ 100.0 ]
Notes:
1. The Company has changed the segmentation from this fiscal year. The results for the last
fiscal year were re-classificated by the new segmentation policy.
2. Figures of less than a million yen are omitted.
3. Figures in ( ) are percentages of business category sales.
4. Figures in [ ] are percentages of total net sales.
17
19. 3. Projected Results for the Full Year
(Year ending Mar. 31, 2011)
Millions of Yen
Years ending/ended variance
Mar.31,2011 Mar.31,2010 (%)
Net sales 423,000 413,524 ( 2.3 )
Operating income 75,000 64,327 ( 16.6 )
Ordinary income 67,000 57,805 ( 15.9 )
Net income 57,000 37,875 ( 50.5 )
Net income per share (Yen) 132.13 87.52 44.61
Ref: for the 4th quarter Millions of Yen
1. Year-on-year comparison Three months ending/ended variance
Mar.31,2011 Mar.31,2010 (%)
Net sales 101,883 104,839 ( -2.8 )
Operating income 16,195 17,328 ( -6.5 )
Ordinary income 15,357 17,012 ( -9.7 )
Net income 9,874 11,882 ( -16.9 )
Net income per share (Yen) 22.89 27.48 -4.59
Millions of Yen
2. Quarter-on-quarter comparison Three months ending/ended variance
Mar.31,2011 Dec.31,2010 (%)
Net sales 101,883 108,449 ( -6.1 )
Operating income 16,195 19,897 ( -18.6 )
Ordinary income 15,357 17,997 ( -14.7 )
Net income 9,874 13,210 ( -25.3 )
Net income per share (Yen) 22.89 30.62 -7.73
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.
18