Concept and Editorial Focus | Review of Operations | HOYA REPORT 2025

HOYA Integrated Report 2025: Concept and Editorial Focus

In producing the HOYA Integrated Report 2025, we have followed the concept and editorial principles outlined below.

Communicate HOYA’s value clearly

We have aimed to present our value creation mechanisms and growth areas in a way that is easy to understand, even for investors following HOYA for the first time.

Be concise

We have sought to avoid redundant explanations and keep the content concise.

New initiative: “A 10-Minute Synopsis of the 2025 Integrated Report”

Recognizing that institutional investors and analysts follow many companies and are often short on time, we have created a version of the report that allows readers to digest the key points quickly.

Omit explanations of common terms

We have omitted definitions of widely used capital market terms such as TAM and CAGR. However, frequently used terms that are specific to HOYA’s operations are explained in the glossary provided below.

Exclude factors that are uncertain at the time of editing

For example, we have not included the impact of U.S. tariffs as a factor in our outlook, as their effect on operations was unclear at the time of editing and the situation remains fluid.

Glossary

Conventions on Terminology and Notation in the HOYA Integrated Report 2025

Term	Meaning
FY24	Fiscal year ended March 2025 (April 2024–March 2025)
YoY	Year on Year
CC	Constant Currency: Growth rate excluding the impact of foreign exchange fluctuations
Operating Profit	Used as a convenient term to denote “profit from ordinary operating activities.”
Operating Margin	Used as a convenient term to denote “profit margin from ordinary operating activities.”

Terms related to HOYA’s businesses and products

Applicable Domain / Product	Term	Meaning
Entire Group	Quarterly Review System	A forum in which executive officers (CEO/CFO/CSO) and the heads of each business division discuss performance, outlook, business strategy, and required resources every quarter. Business strategies are adjusted as necessary based on progress against initial targets. Executive officers assess the rationale of investment decisions such as personnel expansion and production capacity increases and determine whether to proceed.
	Progressive Dividends	A dividend policy under which dividend payments increase each year in line with financial performance, and are maintained even in years of reduced profit (i.e., no dividend cuts)
Eyeglass Lenses	Progressive Lenses	Multifocal lenses designed to accommodate age-related loss of focusing ability (presbyopia), allowing clear and comfortable vision from near to far with a single pair of glasses
	Photochromic Lenses	Lenses that adjust their tint based on ultraviolet light and ambient brightness, darkening like sunglasses when outdoors and becoming clear when indoors
	Myopia Management Lenses for Children	Marketed under the brand name MiYOSMART in over 40 countries. These eyeglass lenses provide standard vision correction at the center while surrounding it with numerous microscopic segments designed to create constant "myopic defocus" on the peripheral retina. This helps suppress excessive axial elongation of the eye and effectively slows the progression of myopia in children. Not yet approved in Japan or the U.S. as of September 2025.
LSI (Mask Blanks)	EUV	Extreme Ultraviolet: A cutting-edge semiconductor manufacturing technology that utilizes light with an extremely short wavelength of 13.5 nanometers. EUV lithography has been adopted starting from the 7nm process node.
	DUV	Deep Ultraviolet: A semiconductor manufacturing technology using UV light with a typical wavelength of 193nm. Also known as the optical lithography method.
	Ångström	A unit of length used to express the linewidth of semiconductors. As semiconductor miniaturization has advanced, traditional expressions such as 3nm and 2nm no longer accurately reflect the pace of technological advancement. As a result, the industry is shifting toward expressing dimensions in even smaller Ångström units (e.g., 14Å = 1.4nm).
	Phase-Shift Mask	A type of photomask that shifts the phase (timing) of light waves during exposure. By exploiting light interference, it enhances or diminishes light intensity at specific areas, allowing higher-contrast patterns to be transferred onto the wafer (the material that ultimately becomes the semiconductor). Expected to be introduced at the 2nm-equivalent node in EUV lithography.
	High-NA EUV Lithography	A next-generation technology for manufacturing finer semiconductor patterns using optical systems with a higher numerical aperture (NA) in EUV lithography. While current EUV tools have an NA of 0.33, High-NA EUV tools will have an NA of 0.55. The higher the NA, the more precisely light can be focused—allowing for more accurate and finer patterning on the wafer.
New Business	XR Glasses	Glasses for extended reality applications. Leveraging its expertise in precision components such as eyeglass lenses and blanks, HOYA aims to supply components for glasses-type wearable devices capable of overlaying digital information onto the real world.