F i n a n c i a l R e s u l t s
April 30, 2021 Earnings Conference
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
© 2021 HOYA CORPORATION All Rights Reserved
- Financial Results [Ryo Hirooka, CFO]
- IT Business Overview
- Life Care Business Overview
- Summary
- Q&A
© 2021 HOYA CORPORATION All Rights Reserved | 2 |
Financial Overview
(¥bn) | Q4 FY19 | Q4 FY20 | YoY | YoY(%) |
Revenue | 135.1 | 151.4 | +16.3 | +12% |
Pretax Profit | 27.7 | 41.3 | +13.6 | +49% |
Net Profit | 19.7 | 30.8 | +11.1 | +56% |
cf. Profit from | ||||
ordinary operating | 32.6 | 43.3 | +10.8 | +33% |
activities* |
Sales and profits increased, mainly driven by EUV blanks and HDD substrates for data centers.
© 2021 HOYA CORPORATION All Rights Reserved | 3 |
Constant Currency Basis (CCB)
(¥bn) | Previous | Current | FX Impact | YoY | YoY(%) |
Rate (A) | Rate (B) | ||||
Revenue | 149.9 | 151.4 | +1.5 | +14.8 | +11% |
Pretax Profit | 40.8 | 41.3 | +0.5 | +13.1 | +47% |
Net Profit | 30.4 | 30.8 | +0.4 | +10.7 | +54% |
Average Rates | (A)Q4 FY19 | (B)Q4 FY20 | Variance |
US$ | ¥109.11 | ¥107.15 | +1.8% |
EURO | ¥120.06 | ¥128.48 | -7.0% |
BAHT | ¥3.44 | ¥3.51 | -1.9% |
© 2021 HOYA CORPORATION All Rights Reserved | 4 |
Notes RE: Special Items
Comprehensive Income Statement | ||||
(¥bn) | Q4 FY19 | Q4 FY20 | YoY | |
Income | 136.6 | 153.1 | +16.6 | |
Expenses | 108.9 | 111.8 | +2.9 | |
Impairment loss | 0.3 | 5.1 | +4.8 1 | |
Pretax Profit | 27.7 | 41.3 | +13.6 |
- Impairment losses were recorded for a company acquired in the past, as it is not currently achieving the profitability initially anticipated.
© 2021 HOYA CORPORATION All Rights Reserved | 5 |
Life Care Earnings
(¥bn) | Q4 FY19 | Q4 FY20 | YoY | YoY(%) |
Revenue* | 88.4 | 95.3 | +6.9 | +8% |
Pretax Profit | 9.0 | 14.8 | +5.8 | +65% |
cf.Operating Profit | 14.4 | 19.0 | +4.6 | +32% |
cf.OP Margin | 16.3% | 19.9% | +3.6pt |
*External revenue
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Life Care Earnings (CCB)
(¥bn) | Previous | Current | FX | YoY | YoY(%) |
Rate | Rate | Impact | |||
Revenue* | 93.6 | 95.3 | +1.7 | +5.2 | +6% |
Pretax Profit | 14.2 | 14.8 | +0.5 | +5.3 | +59% |
cf.Operating Profit | 18.7 | 19.0 | +0.3 | +4.3 +30% |
*External revenue
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IT Earnings
(¥bn) | Q4 FY19 | Q4 FY20 | YoY | YoY(%) |
Revenue* | 45.7 | 54.7 | +9.1 | +20% |
Pretax profit | 19.9 | 27.0 | +7.1 | +36% |
cf.Operating Profit | 19.5 | 25.4 | +5.9 | +30% |
cf.OP Margin | 42.8% | 46.4% | +3.6pt |
*External revenue
© 2021 HOYA CORPORATION All Rights Reserved | 8 |
IT Earnings (CCB)
(¥bn) | Previous | Current | FX | YoY | YoY(%) |
Rate | Rate | Impact | |||
Revenue* | 54.9 | 54.7 | -0.2 | +9.3 | +20% |
Pretax profit | 27.0 | 27.0 | -0.0 | +7.2 | +36% |
cf.Operating Profit | 25.5 | 25.4 | -0.1 | +5.9 +30% |
*External revenue
© 2021 HOYA CORPORATION All Rights Reserved | 9 |
Earnings by Sub-Segment
(¥bn) | Q4 FY19 | Q4 FY20 | YoY | YoY(%) |
Health Care | 64.5 | 70.5 | +6.0 | +9% |
(Eyeglasses/ | (+4.9) | (+8%) | ||
Contact Lenses) | ||||
Medical | 23.9 | 24.8 | +0.9 | +4% |
(IOLs/Endoscopes/ | (+0.3) | (+1%) | ||
Artificial Bone) | ||||
Electronics | 38.7 | 46.6 | +7.9 | +20% |
(LSI & FPD/ | (+8.3) | (+21%) | ||
HDD Substrates) | ||||
Imaging | 6.9 | 8.1 | +1.2 | +17% |
(+1.0) | (+15%) | |||
*Inside the parentheses are growth rates on a constant currency basis
© 2021 HOYA CORPORATION All Rights Reserved | 10 |
Balance Sheet
(¥bn) | Q3 FY20 | Q4 FY20 | QoQ | |
Non-current Assets | 287.3 | 298.7 | +11.4 | |
Current Assets | 526.2 | 554.6 | +28.4 | 1 |
Capital | 651.6 | 672.4 | +20.8 | |
Non-current Liabilities | 45.4 | 49.3 | +3.8 | |
Current Liabilities | 116.5 | 131.6 | +15.1 | |
Total Assets | 813.5 | 853.3 | +39.8 |
- Cash and cash equivalents increased 16.8 billion yen.
© 2021 HOYA CORPORATION All Rights Reserved | 11 |
Cash Flow
(¥bn) | Q4 FY19 | Q4 FY20 | YoY | |
Operating CF | 43.2 | 52.5 | +9.3 | |
Investing CF | -13.7 | -7.8 | +5.9 | |
Financing CF | -12.4 | -43.5 | -31.21 | |
Cash & Cash Equivalents | 318.0 | 334.9 | +16.9 | |
at the end of the term | ||||
- Cash outlays in financing activities increased due to an increase of 30.7 billion yen in the amount of share buybacks YoY.
The share buyback program implemented from Jan. 29 to Apr. 20 ended with the purchase of the upper limit of 40 billion yen, and all shares will be cancelled.
© 2021 HOYA CORPORATION All Rights Reserved | 12 |
- Financial Results
- IT Business Overview [Eiichiro Ikeda, CTO]
- Life Care Business Overview
- Summary
- Q&A
© 2021 HOYA CORPORATION All Rights Reserved | 13 |
IT Snapshot
YoY Sales Growth (Like-for-Like)
+18% | +25% | +15% |
LSI&FPD | HDD Substrates | Imaging |
+20%
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Overview by Product
EUV blanks grew over 80% YoY. In FY21, demand for 3nm/2nm generation development will be the growth driver. In response to the increase in demand, we will start full-scale operation of the new plant. In addition, additional investment in equipment will be made as needed in anticipation of further demand growth in the medium term.
LSI Blanks
While demand for masks for development applications continued to decline due to panel manufacturers' focus on mass production, which was triggered by the "staying at home demand", there are signs of a resumption of R&D. The company will continue to focus on high performance masks, especially OLED.
FPD Masks
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Overview by Product
HDD Substrates
Imaging
In line with the investment cycle of the near-line, sales of 3.5" increased significantly, compensating for the decrease in sales of 2.5", resulting in double-digit growth in overall sales. 3.5" sales are expected to expand from FY21 onward, more than compensating for the contraction of 2.5". We will promote kaizen activities to reduce manufacturing costs.
Gradual recovery in demand, especially for interchangeable lenses for mirrorless cameras, led to positive growth. On the assumption that the digital camera market is unlikely to expand again in the future, we will continue to develop new markets.
© 2021 HOYA CORPORATION All Rights Reserved | 16 |
- Financial Results
- IT Business Overview
- Life Care Business Overview[Hiroshi Suzuki, CEO]
- Summary
- Q&A
© 2021 HOYA CORPORATION All Rights Reserved | 17 |
Life Care Snapshot
YoY Sales Growth (Like-for-Like)
+6%
+8% | +6% | Endoscopes |
-3%-3%
Eyeglass Lenses
Contact Lenses | IOLs | Other |
+6%
© 2021 HOYA CORPORATION All Rights Reserved | 18 |
Overview by Product
Eyeglass Lenses
Contact Lenses
Despite the impact of store closures and other factors due to the repeated lockdown, sales have been recovering since March and recorded positive YoY growth. Although instability will remain in the short term, sales are expected to gradually normalize due to the fact that eyeglass lenses are daily necessities. With myopia becoming a global concern, we will focus on products related to myopia management.
Although the market was depressed due to the impact of the second emergency declaration and other factors, we achieved continuous market share expansion (our estimate) and product mix shift to high-end lenses. In addition, we acquired a chain retailer with 14 stores in the Kansai area. Even though some stores will be closed under the current emergency declaration, we will respond to the situation with our e-commerce services etc.
© 2021 HOYA CORPORATION All Rights Reserved | 19 |
Overview by Product
IOLs
Endoscopes
As in the previous quarter, sales in Asia, driven by growth in China, grew significantly, but the number of surgeries in Japan, which accounts for over 40% of sales, did not return, resulting in a slight decline in overall sales. Although we expect the impact of COVID to remain for a while in the short term, we will continue to strive for growth by increasing our market share.
Despite there were lockdowns in many countries, the industry is adapting to the changing environment, and market activities and investments are starting to resume. As a result, our endoscope sales have turned to growth. The launch of our disposable bronchoscope is planned in Q1.
© 2021 HOYA CORPORATION All Rights Reserved | 20 |
- Financial Results
- IT Business Overview
- Life Care Business Overview
- Summary [Hiroshi Suzuki, CEO]
- Q&A
© 2021 HOYA CORPORATION All Rights Reserved | 21 |
Outlook for FY21(Ending March 22)
- Aiming to increase both sales and profit.
- Although there are uncertainties in the Life Care business HDDin the short term, the company aims to recover to pre-
Substratespandemic levels on the back of vaccinations in the regions that account for the majority of sales (US+EU5).
- In the IT business, EUV blanks and HDD substrates will continue to drive growth. Although we expect an increase in the depreciation charge associated with the start of operations at new plants for both products, we aim to grow profits.
Imaging
For ESG, we will identify materiality and consider specific 映像 measures to achieve our goals.
© 2021 HOYA CORPORATION All Rights Reserved | 22 |
- Financial Results
- IT Business Overview
- Life Care Business Overview
- Summary
- Q&A
© 2021 HOYA CORPORATION All Rights Reserved | 23 |
Appendix
© 2021 HOYA CORPORATION All Rights Reserved | 24 |
Annual Earnings
(¥bn) | FY19 | FY20 | YoY | YoY(%) |
Revenue | 576.5 | 547.9 | -28.6 | -5% |
Pretax Profit | 147.3 | 159.2 | +12.0 | +8% |
Net Profit | 114.6 | 125.2 | +10.6 | +9% |
cf. Profit from | ||||
ordinary operating | 154.5 | 164.0 | +9.5 | +6% |
activities |
© 2021 HOYA CORPORATION All Rights Reserved | 25 |
Life Care Annual Earnings
(¥bn) | FY19 | FY20 | YoY | YoY(%) |
Revenue* | 375.0 | 341.8 | -33.2 | -9% |
Pretax Profit | 62.2 | 63.5 | +1.3 | +2% |
cf.Operating Profit | 70.0 | 71.2 | +1.2 | +2% |
cf.OP Margin | 18.7% | 20.8% | +2.1pt |
*External revenue
© 2021 HOYA CORPORATION All Rights Reserved | 26 |
IT Annual Earnings
(¥bn) | FY19 | FY20 | YoY | YoY(%) |
Revenue* | 196.7 | 201.0 | +4.2 | +2% |
Pretax Profit | 88.1 | 94.9 | +6.8 | +8% |
cf.Operating Profit | 88.6 | 95.9 | +7.3 | +8% |
cf.OP Margin | 45.0% | 47.7% | +2.7pt |
*External revenue
© 2021 HOYA CORPORATION All Rights Reserved | 27 |
Annual Cash Flow
(¥bn) | FY19 | FY20 | YoY |
Operating CF | 163.4 | 151.8 | -11.6 |
Investing CF | -47.4 | -29.8 | +17.6 |
Financing CF | -85.5 | -115.7 | -30.2 |
Cash & Cash Equivalents | 318.0 | 334.9 | +16.9 |
at the end of the term | |||
© 2021 HOYA CORPORATION All Rights Reserved | 28 |
Life Care QoQ Earnings
Revenue | cf. Operating Profit / Margin | ||||||
23.5% | 23.0% | ||||||
19.9% | |||||||
16.3% | 14.9% | ||||||
(bn) | (bn) | ||||||
88.4 | 90.1 | 94.5 | 95.3 | 21.2 | 21.7 | 19.0 | |
61.9 | 14.4 | ||||||
9.3 |
Q4 | Q1 | Q2 | Q3 | Q4 | Q4 | Q1 | Q2 | Q3 | Q4 | |
FY19 | FY20 | FY19 | FY20 |
*External revenue
© 2021 HOYA CORPORATION All Rights Reserved | 29 |
IT QoQ Earnings
Revenue | cf. Operating Profit / Margin |
48.6% | 46.7% | 49.2% | 46.4% |
42.8%
(bn)
(bn) | 25.1 | 25.4 | |||||||
49.0 | 51.1 | 54.7 | 22.5 | 22.8 | |||||
45.7 | 46.2 | 19.5 | |||||||
Q4 | Q1 | Q2 | Q3 | Q4 | ||||||
Q4 | Q1 | Q2 | Q3 | Q4 | ||||||
FY19 | FY20 | FY19 | FY20 | |||||||
*External revenue
© 2021 HOYA CORPORATION All Rights Reserved | 30 |
Topic
HOYA Group's Code of Conduct (CoC) was renewed in March 2021. The CoC sets forth the basic guidelines to be observed by all members of the HOYA Group in the course of their business operations, in accordance with the basic philosophy and values of the HOYA Group as stated in the Corporate Mission and the Basic Management Principles. In light of the Company's global operations, the HOYA Group has translated this document into 27 languages to ensure that all employees are familiar with it. https://www.hoya.co.jp/english/company/pdf/GlobalCoC_English.pdf
© 2021 HOYA CORPORATION All Rights Reserved | 31 |
Notes
- Accounting standard: IFRS
- The fiscal year ending March 2021 is referred to as "FY20" throughout this document.
- Figures less than 100 million yen are rounded down. Accordingly, some discrepancies may occur among totals. Ratios are calculated using actual numbers.
- Like-for-Likefigures 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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Forward Looking Statement
HOYA may make comments and disclose information which include forward-looking statements with respect to HOYA´s plans and future performance. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements and are based on management´s assumptions and beliefs in light of the information available when such statements were prepared, including exchange and interest rates, international situations, market trends and economic conditions, competition, production capacity, estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory, clinical or research and development capabilities, results or practices, customer patterns or practices, reimbursement activities and outcomes, effects of pandemics or other widespread health problems such as the ongoing COVID-19 pandemic on our business, and other such estimates and results. HOYA does not guarantee the accuracy or completeness of such information and HOYA does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
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Hoya Corporation published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 04:31:02 UTC.