HOYA Vision Care Evolving With You HOYA Vision

HOYA Vision Care Evolving With You

HOYA Vision Care Our Company 11. Our Vision 22. Where we started 33. Fact & Figures 44. Basics around eyeglass lens 55. Global market trends for the 6 future 6. Evolving with you through innovation 7 8 7. Approach to sustainability 8. 75 years of HOYA Group HOYA Corporate 2016 2

HOYA Vision Care Our Vision At HOYA Vision Care, we are passionate about innovation. Our goal is to evolve with you to create win/win situations for opticians, specs wearers and ourselves. Around the world. Every day. We deliver superior value for our customers and our shareholders. By the year 2020, we will be the Preferred Eyewear Provider worldwide. HOYA Corporate 2016 3

HOYA Vision Care Our Mission Improving specs wearers’ quality of life by providing superior quality eyewear and customer experience worldwide. HOYA Corporate 2016 4

Our Values We value The trust placed in us to improve people lives by providing superior vision care options The pride our employees take in designing, making and supplying vision care products The tradition that established superior engineering and quality standards evidenced in our products The long term, building long term relationships that endure with customers, suppliers and employees The importance of being a good citizen everywhere we conduct business respecting the local communities and environments HOYA Corporate 2016 5

Born from Innovation. Evolving with you. The brothers Yamanaka The HOYA plant circa 1950 1941 In November, , the brothers Shoichi and Shigeru Yamanaka began producing optical glass in the town of Hoya, Tokyo. At the time, production of optical glass was one of the most advanced technologies in Japan. Seventy-five years later, HOYA has become a global business group with over 34, 000 employees in over 100 subsidiaries. HOYA Corporate 2016 6

Since 1941. Evolving with you. 1958 HOYA ventures into the eyeglass business with the manufacturing of lens press material The HOYA logo in 1960 1984 Glass Disks for The company is Hard Drives The HOYA San Francisco Office renamed HOYA Corporation and shifts its main business focus from “glass” to “light (optics)” 1970 HOYA opens its first U. S. office in San Francisco 1991 HOYA begins producing glass disks for computer hard drives 1962 1974 1987 HOYA’s first original lens, “NEO”, is launched and its UV protection and anti glare characteristics as well as a new curve design without comma aberration, are well received HOYA’s opens its first overseas lens manufacturing plant in Patumthani, Thailand HOYA launches it’s first intraocular (IOLs) lenses HOYA Corporate 2016 7

Since 1941. Evolving with you. 2001 HOYA launches HOYALUX Summit Pro and Nu. Lux lenses that use EYRY, a highindex, plastic lens material. HOYA’s first soft intraocular lenses are launched 2008 The companies merge. HOYA now operates in three fields: Information Technology, Eyecare and PENTAX (lifecare and imaging) The company donated 100 million Japanese yen to assist relief and recovery efforts in communities affected by the earthquake disaster in Japan in March. Medical equipment and other products are also provided as needed 2007 2010 2011 PENTAX becomes a HOYA Healthcare Co. Ltd. becomes Eye Care Division of HOYA Corporation. The company now operates in the business fields of Electronics, Imaging, Healthcare and Medical. HOYA Employees worldwide donated 12. 5 million yen to members of HOYA group and their families who were victims of the earthquake. The Company matched the donations by contributing the same amount consolidated subsidiary of HOYA PENTAX Endoscope 2011 HOYA Corporate 2016 8

Since 1941. Evolving with you. 2013 Eyeglass business expanded its direct presence in Brazil; HOYA acquired eyeglass lens development and manufacturing business from SEIKO Epson Corporation; and acquired 30% of the shares of SEIKO Optical Products Co. Ltd. , a wholly owned subsidiary of SEIKO Holdings Corporation responsible for the sales of the eyeglass-related products 2012 2013 2015 HOYA, SEIKO and EPSON; Agreements executed in the field of optical products business HOYA acquired the majority shares of Wassenburg, a leading company in the field of endoscope reprocessing HOYA reached agreement to acquire Swiss lens manufacturer Knecht & Muller AG 2012 2015 SEIKO Xchanger 2014 Hoya completed the acquisition of a 50% stake in SEIKO Optical Products that became a consolidated subsidiary 1 st 3 D printed wrapped, individualised Sport Frame with customized high curved lenses Continuing… HOYA Corporate 2016 9

HOYA Vision Care: Facts & Figures HOYA Corporate 2016 10

HOYA Vision Care: Key Player in HOYA Group • HOYA Group consolidated sales reached ¥ 489. 96 Bill [~USD 4. 0 Bill] in the fiscal year ended March 2016 • HOYA Vision Care division, a part of Life Care, contributes the major part of Health Care’s revenues HOYA Corporate 2016 11

HOYA Vision Care: Key Player in HOYA Group FY 2012 FY 2015 Imaging 9% Others 1% FY 2016 0. 5% 6. 5% Imaging 17% Health care 39% Electronics 29% [CATEGOR Y NAME] [PERCENT AGE] Health care 48% 49% 27% Medical 15% 17% Medical 16% HOYA Vision Care continues to grow as key contributor within HOYA Group HOYA Corporate 2016 12

HOYA Vision Care: Global Market Share 2016 Americas (incl. US / Canada / Brazil) Market share EMEA Revenue growth 11% Market share Japan Revenue growth 21% 8. 2% Market share Revenue growth 9. 2% 1. 5% 52% FY 2015 FY 2016 Global Market share FY 2015 FY 2016 Asia Pacific Revenue growth 17% 2. 1 % FY 2014 Market share Revenue growth 3. 5 % 13% FY 2015 FY 2014 FY 2015 Organic Growth HOYA Direct Presence HOYA Partner Network Not Covered Area HOYA Corporate 2016 13

HOYA Vision Care: Solid Portfolio The “Global” Consumer Products High consumer awareness, associated with innovation, technology and style The “Quality” Trade Products Proven B 2 B reputation in product quality, innovation, service, flexibility The “Strategic” Consumer Products Mass penetration through affordable price and consumer recognition HOYA Corporate 2016 14

2016 HOYA Vision Care Global Footprint 2015 EMEA Americas 13 ` Asia 41 3, 040 1, 960 17 11, 015 Manufacturing Sites Employees HOYA Corporate 2016 15

HOYA Vision Care Global Footprint 2015 2016 Key Highlights - Global Mass Production Plants § Thailand (2), Vietnam (1) § Philippines (1), China (1) § Hungary (1) Manufacturing / R&D Global RX Super Labs § Thailand (3) § Philippines (1) § Hungary (1) § USA (1) Local Labs Worldwide § +40 RX § +85 C&F centers R&D Center • Tokyo (1) Hungary: 1 Super Lab 1 Mass Production USA 1 Super Lab China: 1 Mass Prod. Thailand: 3 Super Labs 2 Mass Production Vietnam: 1 Mass Production Philippines: 1 RX Lab 1 Mass Production HOYA Direct Presence HOYA Partner Network Not Covered Area Global Production Facilities HOYA Corporate 2016 16

ABOUT HOYA VISION CARE Market Focus AMERICAS § HOYA Vision Care focuses its direct presence operations in markets accounting for over 87% of world’s lens market value. EMEA ASIA PACIFIC HOYA Direct Presence HOYA Partner Network Not Covered Area 17

2016 – as well as following HOYA Vision Care Global Footprint 2015 charts Americas EMEA Asia Employees: 1, 960 Manufacturing Sites: 41 Employees: 3, 040 Manufacturing Sites: 13 Employees: 11, 015 Manufacturing Sites: 17 China: … 2 Mass Production Hungary: 1 Super Labs 1 Mass Production Thailand: 3 Super Labs 2 Mass Production Other Manufacturers 85% Vietnam: … 1 Mass Production [CATEGORY NAME] 16% Philippines: 2 RX Labs 1 Mass Production HOYA Direct Presence HOYA Partner Network Not Covered Area Global Production Facilities: 40+ RX local labs, 30+ RX labs with Free. Form HOYA Corporate 2016 18

HOYA Vision Care Global Footprint 2015 EMEA Region Poland Sweden Finland Denmark Netherlands Russia Belgium Germany UK Czech Rep. Romania France Portugal Spain Italy Turkey Hungary Switzerland Sales office Rx Lab HOYA Subsidiaries HOYA Partner Network Pan-European Super-Lab [Hungary] South Africa HOYA Corporate 2016 19

HOYA Vision Care Global Footprint 2015 APAC Region and Japan Korea Japan (2 companies) China Hong Kong Taiwan India Philippines Thailand Malaysia Singapore Indonesia Sales office Rx Lab HOYA Subsidiaries Australia HOYA Partner Network Hoya Japan (2 companies; 1 local RX Lab) HOYA Corporate 2016 20

HOYA Vision Care Global Footprint 2015 Americas Region Rx Lab HOYA Subsidiaries HOYA Partner Network HOYA Corporate 2016 21

HOYA Vision Care: Basics on Eyeglass Lenses and the Lens Market HOYA Corporate 2016 22

The Four Key Elements Defining Eyeglass Lenses SURFACE TREATMENTS Polarized lens Photochromatic lens Tinting Impact resistance coating Water-shedding coating ve ressi Prog power ion addit (PAL) lens ocal Multif lens -vision Single lens Spherical lens Aspherical lens Bifocal lens Trifocal lens Free form PAL Antireflection coating Ultraviolet protection Hard coating ADC (refraction index 1. 50) Polycarbonate Mid-index (1. 53 / 1. 55) Super-high index (1. 67 / 1. 70) High-index (1. 6) Conventional PAL Individual PAL Ultra high-index (1. 74) LENS MATERIALS LENS DESIGNS PRODUCTION TECHNOLOGY HOYA Corporate 2016 23

Product Forms for Eyeglass Corrective Lenses Stock Finished Single Vision Lenses [FSV] Ready assortment of finished lenses for simple prescriptions Semi-Finished Lenses [SF] Either SV or PAL for transformation into Rx, and for sale to other Rx Labs Prescription Lenses [RX] All PAL, and some SV ground and polished to unique prescriptions Round Uncut Round lenses before edging and mounting into frames. Sold primarily in Europe and Asia UNCUT Mass Production Plant Lens Casting Treatments FSV Lenses HC Photo Mass Production Plant Lens Casting Treatments Photo RX LAB AR HC Surfacing Cut & Edged Based on “frame traces” sent via EDI or the internet from optical shops, Rx or stock lenses pre-cut for delivery and mounting by customers. 80% of sales in Japan C&E SF Lenses Treatments Tint HC Photo AR RX Lenses Mounted or Fitted Rx or stock lenses processed, cut, edged and mounted into frame by Rx Labs. 80% of sales in the U. S. , South Africa, growing in Australia, U. K. and Western Europe FIT HOYA Corporate 2016 24

Lens Industry Structure and Vision Care Business Model END CONSUMERS Prescription Eyeglasses Edged Lens Eyeglass Web Stores “Brick and mortar” Eyeglass Stores Independent Opticians and Buying Groups Retail Chains Integrated Optical Retailers [with own RX Laboratories] Lens Edging RX Laboratories and Distributors RX Finished Lens Semi Finished Lenses Stock Finished Lenses Lens Casting [Mass production] Monomer / Raw Materials Makers Monomer HOYA Corporate 2016 25

HOYA Vision Care: Opportunities through Global Market Trends HOYA Corporate 2016 26

Rapid Growth in Global Eyeglass Lens Consumption Eyeglass lens consumption is expected to grow at a faster rate than the need for vision correction +500 Mill 2025 3 GR CA % 2012 Single Vision Lenses 740 Mill Pieces 140 Mill Pieces Bifocal 120 Mill Pieces 67% 300 Mill Pieces 20% 200 Mill Pieces 13% 74% GR CA % Progressive [PAL] 1. 0 Bill Pieces • Global lens volumes will grow from 1. 0 Bill pieces in 2012 to 1. 5 Bill pieces in 2025, as more people will start to have access to vision correction and will afford to purchase eyeglasses 6 14% 12% • The lens mix will also change due to rapid aging population trend HOYA Corporate 2016 27

Global Eyeglass Lenses Market Trends Global Eyeglass Lenses Market Value (2014– 18) In US$ Bill CAGR% (2014 -18) 15 12 11. 8 12. 1 12. 5 13. 2 12. 9 ~3 ~5 ~0 • Global market value expected to grow at 2 -3% CAGR 9 ~6 • A-PAC and LATAM are the key market growth vectors 6 ~3 • 3 major players accounting for over 70% of market value 3 ~2 0 2014 EMEA 2015 North America 2016 2017 2018 Asia Pacific (excl. Japan) Japan LATAM HOYA Corporate 2016 28

Mega Global Market Trends affect Mid-Long Term Eyewear Vision Care Social & Demographic Changes Connectivity & Convergence Smart is the New Green Health, Wellness & Wellbeing • Generation Y: Impact of increased digital device use • E-Commerce (“Bricks & Clicks”) as a key business driver & enabler • Smart materials: Responds to your surroundings • Eye health & protection: Impact of prolonged digital device use (anti-fatigue) • Rise of middle classes: Higher expectations & spending power • Aging population: ↑ PAL adoption & population • Women’s empowerment: Greater influence on global trends beyond the family Sales & Marketing Harness big data to deliver B 2 B & B 2 C “Bricks & Clicks” integrated offer • Connected living & sensory integration: Remote refraction & integrated sensory function • Social Media & Big Data: Changes interaction with the customers • Internet of Things: Increased eyewear connectivity • New mainstream production techniques (3 D/4 D printing) offer more affordable, customizable & integrated eyewear Technology Development Emphasis on design, functional & electroactivated technologies • Delay onset of myopia / presbyopia: Greater emphasis on eye protection in younger generation • E-Health & Biometric tracking: Tracking & smart eyewear opportunity Production Scalable& customizable integrated eyewear production capability HOYA Corporate 2016 29

HOYA Vision Care: Evolving with you through Innovation HOYA Corporate 2016 30

HOYA Vision Care: Our 202020 Evolution Our Mission Our Vision “Improving patient’s quality of life by providing superior quality eyewear & customer experience worldwide” “By the year 2020, we will be the Preferred Eyewear Provider worldwide” 1 2 Strengthen Core Excellence 3 Enhance Customer Experience Increase Customer Reach and Retention • AR coating superiority • Premier Customer service • Expanded Global presence • Industry’s finest quality in • Professional business • Customer Insight-driven ECP channel • Custom quality for Chain standards [low cost] • Leading product innovation pace partner • Trusted advisor • Comprehensive portfolio • Simplified Selling processes for ECPs 4 • Best in class sales force • Telesales • Compelling global story Create Consumer Engagement • Consumer centricity (specs wearers) • Lifestyle-based product development • Support consumer’s decisions • Harness consumer insights and data • Complete eyewear model HOYA Corporate 2016 31

HOYA Vision Care: Innovative Power 2015 HOYA Vision Care holds a number of 2, 283 Patents registered and under examination as of March 31, 2015 SEIKO Xchanger 1 st 3 D printed wrapped, individualised Sport Frame with customized high curved lenses 2013 2012 2008 Highest level of personalization 2009 2008 2007 2006 2004 2006 2005 2004 The first integrated double surface progressive lens with Balanced View Control, a revolution in the reduction of distortion and swaying feelings 1998 World’s first double-sided aspheric lenses (SEIKO SSV AZ 1. 67) launched 2013 First AR coating with blue light filter! 2009 People based design! Energy for your eyes (Including 683 Patents transferred from SEIKO Optical) First PAL design with Binocular Harmonization 2015 The most durable AR coating in the market! 2007 The complete Hoyalux i. D family i. D Life. Style: The best selling Hoya PAL today i. D Work. Style: Working without boundaries 2005 3 x as scratch resistant as the market at that time 2001 The first bi-aspheric single vision offering sharp vision from edge to edge, even oblique 1997 1998 1997 World’s first inner surface progressive lenses (SEIKO P-1 GR 1. 67) launched HOYA Corporate 2016 32

HOYA Vision Care: Key Innovative Strengths World class innovative products and services under the highest quality standards in the industry Integrated Double-Surface PAL Hard & AR Coatings HIQS Quality Standard HOLT “Low Cost” Rx 24/7/365 Remote Edging System New Media Tools Education Programs HOYA Corporate 2016 33

HOYA Vision Care: Innovative Production Facilities in Thailand (mass + RX) Patumthani [Mass] Patumthani – 1974 Established Ayutthaya: Rx 1 – 2004, Rx 2 – 2006, Rx 3 – 2008 Employees Total = 3. 500 Business Systems ISO 9001, ISO 14001 and OHSAS 18001 Operations Operates 24 hours, 7 days a week, 365 days per year Current Volumes [pcs/month] Mass Production: 2. 75 Mio RX 1, 2, 3: 1. 25 Mio Total: 4. 0 Mio Ayutthaya Rx 1 + Mass Rx 2 Rx 3 + Mass [Poly] HOYA Corporate 2016 34

HOYA Vision Care: Innovative Service HOYA is a ‘full-service’ company creating added value Fast delivery • HOYA’s Rx factories in Thailand are operational 24/7, 365 days a year! Mass production facilities • Available in Thailand, China, Vietnam and Hungary HELP (HOYA’s Edged Lens Program) • Cut and edge, mounting and grooving, frame to com Highly experienced, personal Customer Services HOYA Corporate 2016 35

HOYA’s Service Evolution also includes: HOYA Faculty Education & Experience Centre in Budapest For opticians, optometrists and ophthalmologists who wish to improve their refraction skills and product knowledge Hoyanet The extranet platform offering access to a wide range of instore tools, the latest company news, product information and marketing support materials HOYA Corporate 2016 36

HOYA Vision Care: 20 years of Innovating in Safety and Sustainability Since 1995 Since 1996 In 1995, introduction and implementation of HOYA’s Occupational Safety and Health Principles • Measures to improve the general health, physical and mental well-being of all Hoya employees • Safety standards and risk management In 1996, HOYA started working in accordance with the Environmental Management System, resulting in ISO 14001 certification of all Hoya Vision Care laboratories • Activities to reduce its waste water • Activities to recycle more waste Other certifications: ISO 9001, OHSAS 18001 HOYA Corporate 2016 37

HOYA Vision Care: Sustainability One example: HOYA’s factories in Thailand achievements • Recycling 74+ percent more waste since 2009 • Reducing waste water by no less than 27 percent compared to previous years HOYA Corporate 2016 38

75 Years of HOYA Group. Evolving with you. HOYA Group is celebrating its Anniversary and looks to the next years of providing unparalleled services for consumers, partners and communities around the world HOYA Corporate 2016 39

Throughout our 60+ successful years in the eyeglass lens business, the source of HOYA Vision Care’s innovation and growth has always been our committed team around the world. – Girts Cimermans CEO HOYA Vision Care HOYA Corporate 2016 40

Thank you HOYA Corporate 2016 41