Pentax 2002 Annual Report Download - page 5

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A Message from the President
In the fiscal year ended March 31, 2002, Hoya Corporation was affected by the bursting of the IT bubble.
Fiscal 2002, particularly the first half, was spent responding to these changes. Increases in manufacturing
efficiency allowed globalization to advance to the next level, and this resulted in a contraction of the role of
our Japanese operations. However, viewing another aspect of globalization, it became clear that Japan will
play an important role in the development of next-generation technology and in product improvement.
Whatever the era, whatever the business environment, Hoya stresses business portfolio manage-
ment matched to existing conditions. During the fiscal year under review, changes in conditions outside the
Company were significantly more pronounced than forecast, and the Company invested significant energy
in a swift and appropriate response to those changes. Portfolio management allowed us to slow the earnings
decline of the Hoya Group as a whole. Therefore, it can be said that the Company reaped significant bene-
fits from its policies during this term.
Performance
As mentioned above, Hoya was affected by the bursting of the IT bubble. Going into November 2000,
however, faint indications prompted us to take another look at our portfolio and we took appropriate mea-
sures early in 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.
As a result of these efforts, Hoya held consolidated net sales to only a slight decline of 0.6% from the previ-
ous term. Consolidated operating income fell 2.7%. Although our actions were insufficient to cover the
declining trend in overall profits, we believe the measures were timely in light of the changes in the conditions
outside the Company. Hoya’s consolidated net income grew 8.6%, because of decreases in other expenses.
Dividends of ¥50 per share were declared for the year, for a consolidated payout ratio of 24.5%.
The consolidated shareholders’ equity to dividend ratio was 2.6%.
Consolidated capital investments totaled ¥19,585 million, largely concentrated in the development
of next-generation products in the Information Technology field, particularly in the Electro-Optics division.
Management Policies
The Company always tries to consider ways to increase corporate and shareholders’ value in shaping man-
agement policies. In June 1995, Hoya introduced an external director system based on its own management
policies.
ToOur shareholders
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