July 31st, 2023
Quarterly Report
1st Quarter : 3 months ended June 30, 2023
Consolidated (HOYA CORPORATION and Consolidated Subsidiaries)
Part .1
1st Quarter : from April 1 to June 30, 2023- Quarterly Consolidated Financial Highlights : p.1
- Results of Operations : p.2
- 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
- Projected Results for the First Half (All Operations) : p.11
- <Reference>Supplementary data for 1st Quarter : p.12
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 | July 31st, 2023 |
1. Quarterly Consolidated Financial Highlights
HOYA CORPORATION and Consolidated Subsidiaries
1. Performance for the three months ended June 30, 2022 and 2023 (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, 2022 | Jun. 30, 2023 | (%) | |||
Revenue | 180,179 | 182,288 | 1.2 | |||
Profit before tax | 61,518 | 51,166 | -16.8 | |||
Ratio of profit before tax(%) | 34.1% | 28.1% | ||||
Profit for the quarter | 48,401 | 38,395 | -20.7 | |||
Ratio of profit for the quarter(%) | 26.9% | 21.1% | ||||
Profit attributable to owners of the Company | 48,358 | 38,215 | -21.0 | |||
Ratio of profit attributable to owners of the Company(%) | 26.8% | 21.0% | ||||
Basic earnings per share (yen) | 132.83 | 108.07 | ||||
Diluted earnings per share (yen) | 132.73 | 108.01 | ||||
(2)Financial Position | As of | |||||
Mar. 31, 2023 | Jun. 30, 2023 | |||||
Total assets | 1,028,326 | 1,094,924 | ||||
Total equity | 814,604 | 865,603 | ||||
Equity attributable to owners of the Company | 818,321 | 868,117 | ||||
Ratio of assets attributable to owners of the Company | 79.6% | 79.3% | ||||
Assets attributable to owners of the Company per share (yen) | 2,311.72 | 2,454.94 | ||||
(3) Conditions of Cash Flows | Three months ended | |||||
Jun. 30, 2022 | Jun. 30, 2023 | |||||
Net cash generated from operating activities | 47,364 | 55,396 | ||||
Net cash used in investing activities | -7,454 | -1,456 | ||||
Free cash flow | 39,910 | 53,939 | ||||
Net cash provided by (used in ) financing activities | -71,248 | -31,088 | ||||
Cash and cash equivalents at end of period | 420,166 | 455,470 |
2.Projected Results for the First Half (Six months ending September 30, 2023) for All Operations
Six months ended/ending | Variance | ||||
Sep. 30,2022 | Sep. 30,2023 | (%) | |||
Revenue | 364,291 | 365,000 | 0.2 | ||
Profit before tax | 123,338 | 105,000 | -14.9 | ||
Profit for the term | 95,718 | 80,500 | -15.9 | ||
Profit attributable to owners of the Company | 95,459 | 80,500 | -15.7 | ||
Profit for the term per share (Yen) | 263.80 | 227.64 | - |
3.Other
Three months ended | ||||
Jun. 30, 2022 | Jun. 30, 2023 | |||
Capital expenditure | 7,937 | 9,183 | ||
R&D expenses | 7,078 | 7,810 |
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 Operation
1) Qualitative Information on Quarterly Financial Results
Our operating results for the first quarter of the consolidated fiscal year under review (three months from April 1 to June 30, 2023) are as follows. The Information Technology Business was sluggish, but the Life Care Business was performing well, and as a result, revenue was maintained at the same level as the previous year.
(Millions of yen) | Three months ended | Variance | |
June 30, 2022 | June 30, 2023 | ||
Revenue | 180,179 | 182,288 | 1.2% |
Profit before tax | 61,518 | 51,166 | -16.8% |
Profit for the quarter | 48,401 | 38,395 | -20.7% |
Ratio of profit for the quarter | 34.1% | 28.1% | -6.0pt |
As there were no discontinued operations in both the first quarter and the same period of the consolidated fiscal year, all figures and rates of change display are solely from continuing operations.
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 | |
June 30, 2022 | June 30, 2023 | ||
Revenue | 110,820 | 127,425 | 15.0% |
Segment profit before tax | 25,022 | 30,479 | 21.8% |
<> Products>
Overall sales of eyeglass lenses increased substantially due to strong overseas sales as a result of an increase in sales of high value- added products, an increase in sales to chain stores in the United States, and an increase in sales in China where sales were weak due to lockdown in the same period of the previous fiscal year. Sales of contact lenses increased due to sales promotion activities and strong sales of private brand products (hoyaONE) and online services.
<> Products>
Sales of medical endoscopes increased substantially, reflecting solid sales in Europe and a reaction to the previous fiscal year's lockdown in China. Sales of intraocular lenses for cataracts substantially, mainly due to continued strong sales in Europe and Japan, and an increase in sales in China following the previous fiscal year's lockdown. In other medical-related products, sales increased substantially due to continued strong customer demand for chromatography media used in pharmaceuticals and other applications, as well as strong sales of metal implants.
- Information Technology Business
(Millions of yen) | Three months ended | Variance | |||
June 30, 2022 | June 30, 2023 | ||||
Revenue | 68,260 | 53,738 | -21.3% | ||
Segment profit before tax | 35,599 | 20,938 | -41.2% |
<> Products>
Sales of mask blanks for semiconductors declined due to the impact of inventory cutbacks, despite ongoing activities for active R&D and start of mass production in advanced products, including those for EUV (Extreme Ultraviolet). Sales of photomasks for FPD increased as a result of ongoing activities to develop new products. Sales of HDD substrates decreased due to erosion of HDD by SSD for 2.5-inch products. Sales of 3.5-inch products also declined due to factors such as cutbacks in investment by end-customers, data centers against the backdrop of the deteriorating macro economy, resulting to division-wide sales decline.
- 2 -
Sales of lenses for cameras decreased compared with the same period of the previous fiscal year, when there was a reactionary increase.
③ Others
(Millions of yen) | Three months ended | Variance | |||
June 30, 2022 | June 30, 2023 | ||||
Revenue | 1,099 | 1,125 | 2.4% | ||
Segment profit before tax | 176 | 102 | -42.2% |
The Others segment consists primarily of voice synthetic software and information system services.
2) Reasons for the difference from the previous consolidated cumulative second quarter
(Millions of yen) | Six months ended/ending | Variance | |
September 30, 2022 | September 30, 2023 | ||
Revenue | 364,291 | 365,000 | 0.2% |
Profit before tax | 123,338 | 105,000 | -14.9% |
Profit for the term | 95,718 | 80,500 | -15.9% |
In the Information Technology Business, sales are expected to decrease due to the impact of inventory adjustments in electronics- related products. However, as sales in the Life Care Business are expected to increase due to factors such as favorable sales of high- value-added products and the development of new customers, the Group as a whole expects revenue to remain at the same level as the same period of the previous fiscal year.
< Profit before tax, Profit for the quarter >
In the consolidated cumulative second quarter, profit before tax is forecast to decrease by ¥18,338 million (14.9%) and quarterly income is forecast to decrease by ¥15,218 million (15.9%), due to a decline in the ratio of revenue from the relatively profitable Information Technology Business to the overall Group and an impairment loss recorded in the first quarter of this fiscal year.
3) Subsequent events
Resolution on Share Repurchase
On July 31, 2023, a resolution was made by the Company's board of directors for share repurchase based on Article 39 of Articles of Incorporation pursuant to Article 459.1 of the Companies Act of Japan as outlined below.
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 share to be repurchased | Common stock issued by the Company |
(2) | Total number of shares to be repurchased | 3.6 million shares (maximum) |
(1.02% of total shares outstanding, excluding treasury stock) | ||
(3) | Total amount to be paid for repurchase | 50 billion yen (maximum) |
(4) | Period of share repurchase | August 1, 2023 through October 20, 2023 |
(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 -
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, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |||||||||
Amount | (%) | Amount | (%) | Amount | (%) | Amount | (%) | ||||
ASSETS | |||||||||||
NON-CURRENT ASSETS | |||||||||||
Property, plant and equipment-net | 178,648 | 177,572 | -1,077 | 175,999 | |||||||
Goodwill | 46,818 | 50,493 | 3,675 | 44,823 | |||||||
Intangible assets | 35,732 | 36,832 | 1,100 | 37,462 | |||||||
Investments in associates | 971 | 1,111 | 140 | 991 | |||||||
Long-term financial assets | 45,303 | 45,847 | 544 | 52,994 | |||||||
Other non-current assets | 747 | 665 | -81 | 675 | |||||||
Deferred tax assets | 9,953 | 10,945 | 992 | 10,008 | |||||||
Total non-current assets | 318,171 | 30.9 | 323,465 | 29.5 | 5,294 | 1.7 | 322,952 | 31.5 | |||
CURRENT ASSETS | |||||||||||
Inventories | 105,150 | 115,033 | 9,883 | 101,745 | |||||||
Trade and other receivables | 143,194 | 139,390 | -3,804 | 136,817 | |||||||
Other short-term financial assets | 20,379 | 21,290 | 911 | 8,727 | |||||||
Income tax receivables | 3,798 | 5,417 | 1,619 | 3,073 | |||||||
Other current assets | 30,622 | 33,522 | 2,900 | 29,668 | |||||||
Cash and cash equivalents | 405,888 | 455,470 | 49,582 | 420,166 | |||||||
Sub total | 709,031 | 770,123 | 61,092 | 700,196 | |||||||
Assets held for sale | 1,124 | 1,337 | 212 | 668 | |||||||
Total current assets | 710,155 | 69.1 | 771,460 | 70.5 | 61,304 | 8.6 | 700,864 | 68.5 | |||
Total assets | 1,028,326 | 100.0 | 1,094,924 | 100.0 | 66,598 | 6.5 | 1,023,816 | 100.0 |
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Hoya Corporation published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 04:40:16 UTC.