Pentax 2002 Annual Report Download

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annual report 2002
in your life

Table of contents

  • Page 1
    i n you r l i f e a n n ua l r e p o rt 2002

  • Page 2
    ... Eye Care field is divided into two divisions: the Vision Care division, primarily involving eyeglasses, and the Health Care division, including contact lenses, intraocular lenses for ophthalmological use, and hearing aids. During the fiscal year ended March 31, 2002, Hoya's Information Technology...

  • Page 3
    ... Independent Auditors' Report Financial Data Corporate Data Investor Information Hoya's Timeline Hoya Directory 16 18 18 20 29 30 52 53 54 55 Note on segment data: In addition to the review of operations by segment found on pages 6 through 15 of this annual report, segment-specific data can be...

  • Page 4
    2

  • Page 5
    ...2001. Hoya planned to increase sales and income of the Eye Care field in an effort to offset the declines in the Information Technology field. In the Eye Care field, we succeeded in measures to increase the weight of high-performance and high-value-added products, and increased both sales and income...

  • Page 6
    ...begin again to grow. We have applied management resources to the development of nextgeneration products in markets that are currently witnessing difficulties, focusing especially on the Information Technology field. The third of our key precepts, structural changes, is a little different in approach...

  • Page 7
    ...in this connection are the investments Hoya is making in the development of next-generation products in the Information Technology field. Development of next-generation products in fiber-optic communications is progressing, but there will be some time before that market recovers. Still, fiber optics...

  • Page 8
    ... Sales of mask blanks in Europe and North America were affected by poor conditions in the semiconductor market and by our customers' inventory adjustments. In the Korean and Taiwanese markets, sales of high-precision products for manufacturing phase shift masks and other uses were solid, but sales...

  • Page 9
    › in your Photomasks for LCDs Photomasks are used to transfer circuit patterns onto glass substrates in the manufacture of LCDs. Hoya's products are aimed at high-end color LCD monitors for personal computers. studio 7 pt. 1

  • Page 10
    ..., the circuit patterns are transferred to the silicon wafer using photomasks as a negative and an optical exposure device called a stepper. Mask blanks are the originals of photomasks and indispensable to semiconductor production. Hoya commands a 70% share of the world market for mask blanks. 8

  • Page 11
    ... the shift of their manufacturing bases to Asia, we prepared HOYA OPTICAL (ASIA) CO., LTD. in Hong Kong to administrate marketing, optimal production site and logistics. In addition, the Company specialized Japan's manufacturing facility in technology development and highly difficult products. Not...

  • Page 12
    ...-added products, as focus-progressive lenses were driving growth in the European and Asian markets, and sales of high-index lenses were solid in the United States. Sales in Japan, however, were flat as a result of persistently poor economic conditions. The Health Care division was able to increase...

  • Page 13
    ...production of thin and very flexible lenses. Low reflective coating technology cuts exposure to harmful ultraviolet rays. Hoya uses its worldwide network to supply high-value-added products such as progressive lenses, designed using cutting-edge optical technology. pt. sight 11 3 Eyeglass Lenses

  • Page 14
    ... Intraocular lenses (IOLs) are artificial lenses that are used to surgically replace clouded natural lenses in the eyes of cataract patients. The primary optic part has a diameter of six millimeters. Including the wire-like loops, overall length is just 12.5 millimeters. Because Hoya's new Acryfold...

  • Page 15
    ...to improve customer satisfaction. High-quality customer service and system products, matched to customer need for high-valueadded products, have fueled the outstanding performance of this division. Hoya's marketing strategy has focused on securing store locations on busy streets or in shopping malls...

  • Page 16
    ... The corporate and social gift markets account for major parts of the division's sales, but as a result of poor economic conditions, demand has plunged dramatically. This situation set the tone for the fiscal year under review, putting downward pressure on the division's revenues. Hoya must shift to...

  • Page 17
    › in your Crystal Since Hoya began production of crystal in 1945, the Company has employed its superior production technology and craftsmanship to develop a line of products bursting with originality, and to market them to the world. world 15 pt. 5

  • Page 18
    ... replaced by polyethylene terephthalate (PET) as packing material for specialorder lenses. All of our retail stores recycle or reuse packing materials through our Green Network Communications, and all cardboard boxes used to package our products are reusable. Through these measures, the ratio of the...

  • Page 19
    ... (Japan) HOYA CORP. Vision Care Company (Japan) HOYA HEALTH CARE CORP. (Japan) HOYA LENS UK LTD. (United Kingdom) HOYA LENS ITALIA S.P.A. (Italy) HOYA LENS THAILAND (Thailand) HOYA LENS GUANGZHOU LTD. (China) MALAYSIAN HOYA LENS SDN BHD. (Malaysia) HOYA LENS NEDERLAND B.V. (Netherland) Site (Date...

  • Page 20
    ...expenses/net sales (%) Return on assets (%) Return on equity (%) Inventory turnover (Months) Financial leverage (Times) Capital investment Depreciation and amortization Research and development expenses (Billions of yen) Per share data (Yen): Net income Cash flows Shareholders' equity Price earnings...

  • Page 21
    ...,741 24.2 8.7 11.5 3.2 1.3 19,585 20,105 7.3 Net sales Operating income Ordinary income Net income SG&A expenses/net sales Return on assets Return on equity Inventory turnover Financial leverage Capital investment Depreciation and amortization R&D expenses Per share data: 131.76 267.00 1,222.74 42...

  • Page 22
    .... However, the total number decreased by two as a result of the merger of some overseas subsidiaries. The Company has two fewer affiliates than in the previous fiscal year, as HOYA-OPTIKSLIP AB (which changed its company name to HOYA LENS SWEDEN AB in April, 2002) and THAI HOYA LENS LTD., both of...

  • Page 23
    NH Technoglass Co., Ltd., founded through equal investment by Hoya and Nippon Sheet Glass Co., Ltd., has a plant that produces liquid crystal display glass substrates in Yokkaichi, Mie Prefecture. We deeply regret to report that, during this term, there was an incident in which dust containing ...

  • Page 24
    ... Company narrowed its focus to the development of next-generation products. This segment accounted for 67.8% of the Group's total capital investments. »Eye Care (Vision Care Division) The Vision Care division turned in solid performance, with growth in both sales revenues and profits. In comparison...

  • Page 25
    ... year. Sales Growth and Profitability by Geographical Segment Fiscal year ended March 31, 2002 (Compared with the previous fiscal year) 50 Size of circle shows the volume of operating income. Company-wide ratio 35 Sales Growth Ratio (%) Japan Europe 20 North America 5 0 Asia Company-wide...

  • Page 26
    Information Technology (Electro-Optics Division) (Millions of yen) 120,000 Eye Care (Vision Care Division) 2002 (Millions of yen) 100,000 2000 2001 2000 2001 2002 100,000 80,000 80,000 60,000 60,000 40,000 40,000 20,000 20,000 0 0 Net sales Operating income Return on sales (on total ...

  • Page 27
    ... 22,372 168,856 8,792 24,944 34,210 159,368 9,948 28,964 36,985 North America (Millions of yen) (% of total) 100 1998 67.5 1999 61.1 2000 63.1 2001 57.9 2002 56.2 80 60 Sales to Domestic and Foreign Customers 40 12.2 8.2 20 11.6 12.7 0 14.0 12.7 12.1 11.6 15.2 13.8 11.0 15.3 10.7 16...

  • Page 28
    ... payment of dividends. In aggregate, cash and cash equivalents at the end of the year increased by ¥14,623 million to ¥66,321 million. It is the Company's policy to employ cash and cash equivalents in investments aimed at maximizing corporate value and spurring renewed growth. 1999 2000 2001 2002...

  • Page 29
    ....6 12.4 11.8 11.5 Depreciation and amortization Net income Cash flows 17,570 18,234 12,348 17,837 29,918 36,071 16,051 32,138 20,105 20,716 21,860 23,741 36,767 53,998 43,846 (%) 80 1998 1999 2000 2001 2002 75 70 Shareholders' Equity Ratio 65 60 55...

  • Page 30
    ...00 25.00 25.00 50.00 (%) 100 1998 1999 2000 2001 27.4 2002 24.6 80 41.8 39.0 33.7 60 Group Employees by Region 45.0 40 42.9 20 12.9 2.4 13.9 3.4 19.3 12.2 4.0 15.4 43.0 43.7 48.2 15.8 11.4 0 Total Japan Asia Europe North America 9,320 3,896 3,999 1,198 227 9,414 3,667 4,117 1,314...

  • Page 31
    Independent Auditors' Report 29

  • Page 32
    ... in progress Total Accumulated depreciation Net property, plant and equipment INVESTMENTS AND OTHER ASSETS: Investment securities (Note 5) Investments in unconsolidated subsidiaries and associated companies Goodwill Software Rental deposits Deferred charges Long-term accounts receivable Deferred tax...

  • Page 33
    ... 2001 2002 CURRENT LIABILITIES: Short-term bank loans (Note 8) Current portion of long-term bank loans (Note 8) Notes and accounts payable: Unconsolidated subsidiaries and associated companies (Note 14) Other-trade Construction and other Income taxes payable (Note 11) Accrued bonuses to employees...

  • Page 34
    C onsolidated S tatements of Income Hoya Corporation and Consolidated Subsidiaries March 31, 2002, 2001 and 2000 Millions of Yen Thousands of U.S. Dollars (Note 1) 2002 2001 2000 2002 NET SALES (Notes 13 and 14) COST OF SALES (Notes 13 and 14) Gross profit SELLING, GENERAL AND ADMINISTRATIVE...

  • Page 35
    ... of S hareholders' E quity Hoya Corporation and Consolidated Subsidiaries March 31, 2002, 2001 and 2000 Issued Number of Shares of Common Stock Millions of Yen Common Stock Additional Paid-in Capital Retained Earnings Net Unrealized Gain(Loss) on Availablefor-sale Securities Foreign Currency...

  • Page 36
    ...: Cash dividends, $0.41 per share Bonuses to directors Net increase in unrealized gain on available-for-sale securities Net decrease in foreign currency translation adjustments Net Increase in treasury stock (2,029 shares) BALANCE, MARCH 31, 2002 See notes to consolidated financial statements...

  • Page 37
    ... sales of investment securities Purchases of investment securities Payment for purchase of consolidated subsidiaries, net of cash acquired Proceeds from sales of property, plant and equipment Purchases of property, plant and equipment Decrease in other assets Increase in other assets Net cash used...

  • Page 38
    ... inventory and property) Liabilities (primarily trade payables) Additional Information: Assets acquired and liabilities assumed in acquisition: Assets acquired Goodwill Consolidated goodwill Liabilities assumed Minority interests Investments in associated companies Cash paid ¥ 1,168 (196) $ 8,782...

  • Page 39
    ... unrealized profits included in assets resulting from transactions within the Group are eliminated. b. Cash Equivalents The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese Securities and Exchange Law and its related...

  • Page 40
    ... at rates based on the estimated useful lives of the assets, while the straight-line method is applied to buildings of the Company and its domestic subsidiaries, and to all property, plant and equipment of consolidated foreign subsidiaries. The net book value of tangible fixed assets depreciated...

  • Page 41
    ... contracts are utilized by the Group to reduce foreign currency exchange risks. The Group does not enter into derivatives for trading or speculative purposes. Effective April 1, 2000, the Group adopted a new accounting standard for derivative financial instruments and a revised accounting standard...

  • Page 42
    ... 1, 2000 to February 28, 2001 of HOL and subsidiaries. (iii) Reorganization of Subsidiaries (i) Merger of the company with subsidiaries On July 1, 1999, the Company merged with Hoya Lens Corporation, which had been a wholly owned subsidiary of the Company. The Japanese Commercial Code (the "Code...

  • Page 43
    ... and 2001 were as follows: Carrying amount Millions of Yen Thousands of U.S. Dollars 2002 2001 2002 Equity securities Debt securities Commercial paper Total Commercial paper is included in cash and cash equivalents. ¥ 466 ¥ 815 1,650 7,000 $3,503 ¥ 466 ¥ 9,465 $3,503 Proceeds from...

  • Page 44
    ...504 338 293 143 $4,827 NO»9 R E T I R E M E N T corporate auditors. BENEFITS AND PENSION PLANS The Company and its certain consolidated domestic subsidiaries have severance payment plans for employees, directors and Under most circumstances, employees terminating their employment are entitled to...

  • Page 45
    ... Assumptions used for the years ended March 31, 2002 and 2001 are set forth as follows: 2002 2001 Discount rate Expected rate of return on plan assets Amortization period of prior service cost Recognition period of actuarial gain / loss Amortization period of transitional obligation 2.5% 5.5% 12...

  • Page 46
    ...o » 11 income taxes The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective statutory tax rate of approximately 41.7% for the years ended March 31, 2002, 2001 and 2000. The tax effects of significant...

  • Page 47
    ... million ($30 thousand), ¥38 million and ¥155 million, respectively. The Group leases certain machinery, computer equipment, office space and other assets. Total rental expenses for the years ended March 31, 2002, 2001 and 2000 were ¥8,739 million ($65,707 thousand), ¥8,352 million and ¥5,559...

  • Page 48
    ... 15 contingent liabilities At March 31, 2002, the Group had the following contingent liabilities: Millions of Yen Thousands of U.S. Dollars 2002 2002 Guarantees of borrowings and lease obligations for customers Guarantees of borrowings for the Group's employees Total ¥ 447 123 ¥ 570 $ 3,361...

  • Page 49
    ... to the Group's directors and key employees to purchase up to 3,500 thousand shares of the Company's common stock in the period from October 1, 2003 to September 30, 2007. The options are granted at an exercise price at the fair value at the previous date of the option grant. The Company plans to...

  • Page 50
    ... of Yen 2002 Information Technology Electro-Optics Photonics Eye Care Vision Care Health Care Crystal Lifestyle Refinement Service Total Eliminations and Corporate Consolidated Sales to customers Intersegment sales Total sales Operating expenses Operating income (loss) ¥ 101,496 481 101,977 74...

  • Page 51
    ... and laboratory, and medical purposes), etc. Vision Care: Eyeglasses, eyeglass frames, ophthalmic equipment, etc. Health Care: Contact lenses and related accessories, intraocular lenses, hearing aids, medical equipment, etc. Crystal: Crystal glass products Service: Design of information systems...

  • Page 52
    ...segments of the Company and consolidated subsidiaries for the years ended March 31, 2002, 2001 and 2000 are summarized as follows: Millions of Yen 2002 Japan North America Europe Asia Total Eliminations and Corporate Consolidated Sales to customers Interarea transfers Total sales Operating expenses...

  • Page 53
    ... on the countries where the customers are located. The segments consisted of the following countries: North America: Europe: Asia: Other: United States of America, Canada, etc. Netherlands, Germany, United Kingdom, etc. Singapore, Thailand, Republic of Korea, Taiwan, etc. Saudi Arabia and Brazil...

  • Page 54
    ... Iizuka HOYA Group (As of March 31, 2002) Global Headquarters (Formulating group strategy) Information Technology Eye Care Crystal (Area) Supporting Legal and Financial Operations Japan (Holding Company) Asia (Holding Company) North America (Holding Company) Europe Global Business...

  • Page 55
    Investor Information (As of March 31, 2002) Listing of the Company's Shares First Sections of the Tokyo and the Nagoya Stock Exchanges Number of Shares of Common Stock Authorized: 320,000,000 Issued: 116,124,405 Trading Unit 100 shares Number of Shareholders 6,872 Common Stock Price Range 2001 High...

  • Page 56
    ... employee. December Hoya Lens Deutschland GmbH became the first Group company to receive ISO 14001 certification. 1998 April 1997 April 1972 December Sales of soft contact lenses began. 1973 February The Company's listings were advanced to the First Section of the Tokyo and Nagoya Stock Exchanges...

  • Page 57
    ... EUROPE BRANCH Bilton House, 54/58 Uxbridge Road, Ealing, London, W5 2ST, U.K. TEL 020-8579-6939 SINGAPORE REPRESENTATIVE OFFICE 30 Cecil Street, Level 15 #11 Prudential Tower, Singapore 049712 TEL 6232-2313 HOYA OPTICAL LABORATORIES HEADQUARTERS 651E, Corporate...

  • Page 58
    ...-2430 HOYA SERVICE CORPORATION 10th Floor, HOYA Marketing Building, 29-9, Takadanobaba 1-chome, Shinjuku-ku, Tokyo 169-8661, Japan TEL 03-3232-7671 Overseas Subsidiaries and Affiliates Asia and Oceania HOYA HOLDINGS ASIA PACIFIC PTE LTD. 138 Cecil Street, #08-03 Cecil Court, Singapore 069538 TEL...

  • Page 59
    ..., Ontario,Canada L5T 1Y5 TEL 905-5650577 HOYA CRYSTAL, INC. 41 Madison Ave., 9th Floor, New York, NY 10010, U.S.A. TEL 212-679-3100 *Equity-method affiliates For additional information about this our Company, contact: Investor Relations 7-5, Naka-Ochiai 2-chome, Shinjuku-ku, Tokyo 161-8525, Japan...

  • Page 60
    7-5, Naka-Ochiai 2-chome, Shinjuku-ku, Tokyo 161-8525, Japan This annual report is printed on recycled paper. Printed in Japan