I would like to take this opportunity to express my sincere appreciation for your constant understanding and support for HOYA management.

Review of Fiscal 2009：The beginning of the Hoya Group’s next stage of evolution
Fiscal 2009, the year ended March 31, 2009, was a tumultuous year marked by a financial crisis in the U.S. that ended up causing a global recession, and we faced a difficult business environment. For the Hoya Group, however, it was also the beginning of our next stage of evolution.
Despite the fact that the full-year results of Pentax and its subsidiaries were included in consolidated results for the first time, the Hoya Group posted consolidated net sales of ¥454,194 million (down 5.7% year on year), while operating income was ¥59,094 million (down 37.8%), ordinary income was ¥71,080 million (down 28.9%) and net income was ¥25,109 million (down 69.3%) as the business environment deteriorated rapidly.
Those businesses of eye glasses, contact lenses, intraocular lenses recorded firm growth, while Electro-optics business that provides parts and materials used for the production of digital products such as LCD panels and personal computers was affected by economic downturn. Moreover, the Pentax digital camera business experienced a steep decline of the demand in the weakening economy. As a result, the consolidated sales of the Group were down 5.7%.
Operating income was down 37.8%, due to factors such as lower sales in the major business divisions and an operating loss incurred by Pentax. Moreover, in the current uncertain business environment, we carefully evaluated businesses, conservatively recognizing impairment losses on fixed assets for Pentax and other business divisions. This step resulted in a 69.3% year-on-year decline in net income.

Business Portfolio Management for Sustained Growth
The HOYA Group has been developing various business operations pivoting on optical (light manipulation) technology based on the concept of Business Portfolio Management. Business Portfolio Management is an approach in which we consolidate multiple differing businesses within the group while adeptly balancing them, ensuring ongoing growth potential and profitability in the group overall. We are constantly developing the optimal business portfolio by regrouping businesses to match the needs of the times and changes in the environment with the aim of realizing sustainable growth as a corporation.

Accelerating Growth in the Health Care and Medical Fields
HOYA merged PENTAX in the fiscal year ended March 31, 2008, which resulted in the addition of Pentax’s digital camera, medical endoscope and other business operations to the platform of HOYA’s existing operations in the areas of Information Technology and Eye Care.
When we looked ahead to Hoya 10 or 20 years down the road, we wanted to ensure that the Company would have the technologies and markets it needed. That is why I believe the merger was an extremely meaningful step for us. Given the impact of the global economic slump, we have yet to see the results we initially expected, but I firmly believe that Pentax's technologies and business base in the medical field will provide us with incomparable value in the future.
Hoya can look to the aging societies of Japan, Europe, and the United States, and to improvement of infrastructure in newly emerging economies for enormous latent demand in health care fields such as eyeglasses, contact lenses, intraocular lenses, medical endoscopes, and artificial composite bone. I believe that there is ample potential for growth.
Hoya has positioned health care as a growth segment for the future. We will work to achieve ongoing growth across the Group by actively investing management resources in these fields, while at the same time securing stable earnings from the Information Technology fields by displaying our technological competitiveness.

To Stakeholders
As company CEO, I am aware that I will stay at the helm of HOYA management facing constantly in your direction. I look upon IR (investor relations, communication activities also including the disclosure of information to investors) as a critical element of management and, besides the disclosure of information to you all in a timely manner, I also place importance on interactive communication with shareholders and investors and intend to make active use of that in management.

Hereafter, while responding flexibly to changes in the times, we will create unique HOYA value for the benefit of mankind and for the continued development of society. I would like finally to ask for your continued steadfast support.

Hiroshi Suzuki, President & CEO
July 1, 2009