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Financial Review
Management Discussion and Analysis
(Notation)
The Company has been preparing its consolidated financial statements in accordance with
International Financial Reporting Standards (IFRS) and now plans to get it ready by the end of
this year. In the meantime, please also refer to the following documents.
Quarterly Business Report for the fiscal year ended March 31, 2010
The 72nd Business Report; attached documents for the Notice of the 72nd Ordinary General
Meeting of Shareholders
We are sorry for any inconvenience that may cause to you.
Hoya Group and Scope of Consolidation
The Hoya Group (the "Groupquot;) consists of Hoya Corporation (the quot;Companyquot;), 106
consolidated subsidiaries (5 in Japan and 101 overseas) and 9 affiliates (5 in Japan and 4
overseas). Of the affiliates, 3 (2 in Japan and 1 overseas) are accounted for by the equity
method.
The Hoya Group is managed on a global, consolidated basis. Each of the Group's business
divisions and subsidiaries carries out their business strategies as formulated by the global
headquarters at Hoya Corporation, yet with their own management responsibility. Each region?
North America, Europe and Asia?has its own headquarters, which focuses on enhancing
relations with the countries or regions of its operations, as well as supporting business
promotion activities, including with legal assistance and internal auditing. Hoya's branch in the
Netherlands is the financial headquarters for the Group.
Net Sales
Consolidated net sales for the fiscal year ended March 31, 2010, amounted to ¥413,524 million,
declining 9.0% year on year. By principal business segment, net sales in the Electro-Optics
Division of the Information Technology business declined 12.5% year on year. Within the Eye
Care business, net sales in the Vision Care Division were down 6.4% year on year, while in the
Health Care Division net sales rose 8.1% year on year. For the Pentax divisions, net sales
dropped 13.1%, compared with the previous fiscal year.
By customer region, net sales to customers in Japan decreased 10.6%, to ¥152,266 million,
while net sales to overseas customers declined 8.0%, to ¥261,258 million. As a result, the
composition of net sales was 36.8% domestic and 63.2% overseas, meaning that overseas net
sales accounted for an even higher proportion of total net sales than in the previous fiscal year.
Hoya calculated the effect of exchange rates on operating results during the fiscal year under
review by comparing the foreign currency-denominated financial statements of its overseas
subsidiaries when converted into yen at the average exchange rates during the fiscal year with
the same statements when converted into yen at the average exchange rates during the
previous fiscal year. In currency markets during the fiscal year under review, the yen rose 8.0%
against the U.S. dollar, to ¥92.61, 8.8% against the euro, to ¥130.68, and 6.5% against the Thai
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