FY19

Category insights Vision Care

HOYA

Confidential information, nothing in these presentations can be copied or distributed outside of GV central HQ management team without

prior consent of Hoya

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Category Size and Definition

Market Dynamics

Consumer Insights

Marketing Tools

What is the Macro Category Perspective

What are the main market dynamics?

What are the Consumer Insights?

2

Category size and definitionMarket Dynamics

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Source – SWV 2018

Total lens

business

10,036 bio €

(+2,9% CAGR 2011-2017)

constant exchange rate

used

Single Vision

3,578 bio €

(+1,1% CAGR 2011-2017)

PAL

5,669 bio €

(+6,1% CAGR 2011-2017)

Bifocal

0,789 bio €

(-5,6% CAGR 2011-2017)

• A total of 67 countries

representing 94,9% of the

world GDP were researched

in detail for the 2018 study.

• The 67 countries researched

made up 79.3% of the total

population of the world.

• The point of measurement

was the number of ophtalmic

lenses sold to optical

retailers.

• An optical outlet is defined as

a shop where a sales person

sells prescription eyewear.

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• Merket is slowing down in both volume and value. Main reasons:

• Low rate volume growth in the main optical markets of EU, no growth in USA,

low growth in Brazil and decline in Russia. Countries as Turkey (+5% per year)

and India (+3% per year) were not able to balance out the low growth.

• SV prices are not increasing or showing low level of increases in countries

where the currency was depreciating against US dollar. Another factor affecting

value growth was the decline of conventional progressives.

• In terms of material, mineral continues to decline while Trivex is growing in USA.

Polycarbonates volumes are flat.

• 1,5 index is the largest sub-category and grew at 1,4%

• Photocromic continue to grow at 4,4% volume rate in 2015-2017. Penetration is now

at 11,9%.

• 65% of the lenses are now anti-reflection coated.

Source – SWV 2018

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Eyeglass lens business is expected to grow adding 0,5 Bill. pieces in 2025.

Source – SWV and internal estimation

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HOYA stands at the #2 position in the industry and in addition to organic growth has

expanded its share of the market throught M&A initiatives, including the 2013

acquisition of SEIKO’s eyeglass lens unit and US based Performance Optics, LLC

in 2017.

Essilor will expand

its business after the

merge with Luxottica

becoming the

dominant player in

the market

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20171° 3D tailored

eyewear

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Consumer InsightsHOYA innovation plan

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AGING POPULATION AND

SENIOR SPENDING

POWER

ONLINE PRESENCE WILL

CONTINUE TO GROWSMARTER AND EASIER

SHOPPER EXPERIENCE

INCREASING DEMAND

OF UV PROTECTION

NEVER STOP DIGITAL

TOOLS USAGE

GROWTH OF MYOPIA

AMONG YOUNGEST

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People are living for much longer and want to remain active, contribute to society

and maintain an ageless attitude toward life. Almost every country in the world is

showing growth in the number and proportion of older people relative to the

general population.

Overall, later lifers are in better financial shapes than the rest of the population,

boasting the highest spending power among all age groups.

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Source – GFK 2018

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Source – GFK 2018

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Consumers will enjoy access to experience rich store offerings a huge of choice

of product and offering add-on such as customization and personalization.

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• The effect of UVR depends on:

- The concentration of atmospheric

ozone

- Geographic location

- Altitude

- Time of the day and seasons

- Weather: clouds, dust, smog

- Reflection:

➔ Snow – reflects up to 85%

➔ Water – reflects up to 100 %

➔ Dry sand or concrete –

reflects up to 25%

➔ Grass – reflects up to 3%

- Current illness or medications can

cause UV sensitivity

Source – The vision council

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Source – BAIN & Company

Taking a Break

Doesn’t Always Mean

Taking a Break From

Screens

For many, “breaks” are spent on

digital devices checking social

media, texting a friend, or

watching the latest viral video.

TWO-THIRDS OF OUR

PARTICIPANTS

DID NOT TAKE A BREAK FROM

THEIR SCREENS AT ANY MOMENT

FOR LONGER THAN 1 MINUTE.

Laptop and phone image (scott has this)

https://www.pexels.com/photo/adult-

beverage-cappuccino-chill-377909/

https://www.pexels.com/photo/man-holds-

digital-tablet-in-his-hands-6363/

Source – Qual research HOYA US 2017

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The prevalence of myopia is especially high reaching 80% in Asian Urban regions

and there is also an increasing trend among Caucasian countries. If the prevaence

continues to increase, it is predicted that by 2015 half of the world’s population will be

myopic. High myopia has long term retinal and ocular health consequences that

affect quality of life and is now considered a global public health issue.

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AGING POPULATION AND

SENIOR SPENDING

POWER

ONLINE PRESENCE WILL

CONTINUE TO GROWSMARTER AND EASIER

SHOPPER EXPERIENCE

INCREASING DEMAND

OF UV PROTECTION

INCREASED USAGE OF

DIGITAL TOOLS

GROWTH OF MYOPIA

AMONG YOUNGEST

I-GUIDE VISUREAL MASTER

NEW SVSUN RX

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Relaxing our eyes in a digital world

Proposition:

Sync III enhanced single vision lenses are specifically

designed for people between 13-45 years old who spend

2+ hours a day looking at screens or any near task, and/or

suffer from digital eye strain.

Sync III lenses have the distance power for everyday use

and a 'boost zone' at the bottom of the lens. The boost zone

slightly increases lens power, which helps to relax the eye

muscles and focus more easily, relieving eye strain and

enhancing visual comfort during prolonged up-close

activities in a digital world.

According to recent study, the severity of eye strain

symptoms reduced in 84% of the cases2 after wearing

Hoya accommodative support lenses. 94.7% of wearers

said to be satisfied with Hoya accommodative support

lenses1

Our eyes are not made for screens. Sync III lenses are.

1Gosling T. Helping relieve new visual demands. Optician. 06/2017, vol. 253, no. 6605, p. 23-242 Ang C., Dinevski D., Vlasak N., Kok A. Taking the strain. Optician. 05/2017, vol. 253, no. 6600, p. 25-28

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• Optician Magazine

• Eyes

• Optometry Today

• Primary Health Net

• Vision Now (buying group)

Dr. Thomas Gosling: Key Opinion Leader opinion "The accommodative demands of screen addiction and the new Sync III lenses to rescue"

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MyoSmart with D.I.M.S. Technology, a lens for

myopia control in children and youth, developed

in cooperation with our partner, The Hong Kong

Polytechnic University. Wearing defocus

spectacles daily significantly slows myopia

progression and axial elongation in myopic

school children aged 8 to 13, according to a

two-year double-blind randomized clinical

trial in which 160 Chinese myopic children in

Hong Kong participated. Following the trial,

which began in 2014, myopia progression in

children wearing defocus lenses slowed in

average by 59% and axial elongation reduced in

average by 60%. In 21.5 % of the children the

myopia progression halted completely. The

findings provide strong evidence that defocus

lenses are effective in reducing myopia

progression.

Marketing tools ECP comms and aids , consumer

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EYE CATCHING

CAMPAIGN

VISUALS

SPECIFIC

TRAINING

COMPELLING

SALES AID &

ECP SELLING

TOOLS

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Hoya ECP Tools - assist in decision

making process