Management Focused on Capital Efficiency

Since the 1990s, we have initiated corporate governance reforms while also adopting and strengthening policies focused on capital efficiency. Since our listing on the First Section of the Tokyo Stock Exchange (currently the Tokyo Stock Exchange Prime Market), we have never posted a loss and have achieved steady profit growth. By actively returning surplus capital to shareholders, we have delivered consistent double-digit annual growth in earnings per share (EPS) over the past ten years, while maintaining a high return on equity (ROE) of around 20%.

Changes in the Number of Directors
*Blue indicates outside directors

EPS: Continues to grow at a double-digit rate, driven by profit growth and share buybacks

ROE: Gradually increasing while maintaining a high level

Our shareholder returns have traditionally centered on share buybacks. However, taking into account the views of shareholders and investors with a strong focus on dividends, we announced a new dividend policy in May 2025, featuring a progressive dividend structure with a target payout ratio of 40%. Moving forward, while continuing to prioritize growth investments, we aim to return 100% of surplus capital to shareholders.

Agile Business Operations

At the core of our management framework is a quarterly review process for each business division. While day-to-day business decisions are delegated to the respective divisions and executed under their responsibility, each division submits a quarterly report covering both quantitative and qualitative aspects of its performance. Executive officers then assess these reports thoroughly—shifting from a bird’s-eye view to a worm’s-eye view—to carefully evaluate the situation and determine how to allocate management resources. Business units with highly feasible plans are allocated greater resources, such as capital investment funding, which in turn strengthens our business portfolio through a survival-of-the-fittest approach. In an environment of constant external change, we do not rigidly adhere to the business plans set at the beginning of the year. Instead, we revise strategies and numerical targets flexibly as needed, enabling us to maximize opportunities while minimizing risks.

Structural Market Growth

Eye Health: Eye Health, a core business area for HOYA, is expected to see sustained structural growth over the long term. As the global population ages and the use of digital devices becomes more widespread, issues related to vision and eye health are gaining increasing importance. Some forecasts suggest that by 2050, nearly half of the world’s population will be affected by myopia, with the rising prevalence of childhood myopia emerging as a serious social concern.

At HOYA, we provide products and solutions tailored to the vision needs of all generations—from young children to older adults. Through continuous innovation, we are committed to contributing to better vision for people around the world.

IT: As technologies such as generative AI, IoT, and next-generation communications like 5G and 6G continue to advance, there is an increasing need for the evolution of the computing and data management infrastructure that forms their backbone. At the heart of these innovations is semiconductor technology, which is now reaching the angstrom scale—an extremely fine level measured in just a few atoms. In parallel, every aspect of human activity is producing massive volumes of data that are being stored in data centers and other facilities. HOYA positions the IT domain as a high-growth business area. Through high-precision products such as mask blanks essential for semiconductor manufacturing and glass substrates for hard disk drives (HDDs), we provide critical support for the information and communications technologies that underpin modern life.

Key Growth Areas

Against this backdrop, HOYA positions the Eye Health domain as a stable growth area and the IT domain as a high-growth area. Within these domains, we have identified the following three businesses as key growth drivers and are focusing our efforts on their development.

For more information on each business, please refer to the Review of Operations section.

Seeding New Business Opportunities

We are advancing the development of new technologies and products through cross-divisional collaboration, while also pursuing strategic M&A opportunities as needed to achieve transformational growth and ensure the company’s long-term sustainability.