FY24 Performance Highlights

Revenue

In FY24, revenue increased by 14% YoY (CC +11%) to 866.0 billion yen, driven primarily by a significant recovery in customer demand in the Information Technology business.

In Life Care, although the business was partially impacted by a malicious third-party cyberattack in late March 2024 and by government-led policy headwinds in the Chinese market, overall revenue grew by 4% (CC +2%) thanks in part to effective sales promotion initiatives for eyeglass lenses.

In the Information Technology business, revenue grew sharply by 36% (CC +33%), reflecting a strong rebound from FY23, which had been affected by customer inventory adjustments in semiconductor photomask blanks and HDD substrates.

Operating Profit

Operating profit increased significantly to 255.8 billion yen, up 22% YoY.

In the Life Care business, to bring sales back onto a growth trajectory following the IT incident, we invested in promotional activities—particularly for eyeglass lenses. As a result, profit declined by 11% (CC -13%). The operating profit margin was 17.3%, slightly below the benchmark level of 20%.

In the Information Technology business, strong customer demand led to continued full-capacity factory operations and highly efficient production. Operating profit rose by 56% (CC +52%), with an operating profit margin of 54.1%.

Key Financial Indicators (5-Year Trends)

Revenue

By operating two businesses with distinct product characteristics—Life Care and Information Technology—we have maintained a balanced overall business portfolio and steadily grown our revenue. In FY24, we achieved a record-high level of sales.

Operating Profit and OPM

In FY23, operating profit declined slightly due to temporary adjustments in core products within the high-margin Information Technology business. However, overall, operating profit has continued on an upward trajectory. The operating profit margin has remained stable at around 30%.

Net Profit and EPS

While steadily growing net profit, we have consistently carried out a certain level of share buybacks each fiscal year and canceled the repurchased shares. As a result, we have maintained EPS growth that outpaces net profit growth.
Going forward, we aim to continue delivering EPS growth that exceeds profit growth through share buybacks.

Shareholder Return to Free Cash Flow Ratio

We aim to return 100% of free cash flow to shareholders. In recent years, shareholder returns have been somewhat weighted toward share buybacks, resulting in a lower dividend payout ratio. Going forward, under our new dividend policy, we will seek to strike a better balance between dividends and share buybacks (details provided below).

CAPEX / D&A

Capital expenditures had remained around 40 billion yen but have risen to approximately 50 billion yen since FY23, reflecting medium- to long-term growth in demand for mask blanks for semiconductors and HDD substrates, as well as sustained growth in eyeglass lenses. By segment, approximately 60% of capital investment is allocated to the Life Care business, and 40% to the Information Technology business. Depreciation expenses are also trending upward in line with the increase in capital expenditures.

Cash and Deposits / Total Assets

With the expansion of our business scale, total assets have increased, exceeding 1 trillion yen at the end of FY24. In addition, as a significant portion of our cash is held in U.S. dollars, the ongoing depreciation of the yen in recent years has contributed to a continued rise in cash and deposits. We recognize this as a challenge from a capital efficiency perspective, and we aim to further improve capital efficiency, taking into account the funds required for growth investments and shareholder returns.