Pentax 2005 Annual Report Download - page 5

A MESSAGE TO OUR STAKEHOLDERS
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Hoya engages mainly in two fields of business. Our
Information Technology field consists of the Electro-Optics
and Photonics divisions, and the Eye Care field consists of
the Vision Care and Health Care divisions. Our main
products in the Information Technology field include optical
lenses for digital cameras and the glass disks for the HDDs
that are found in personal computers and portable music
players, and the mask blanks and photomasks that are
essential for the production and development of
semiconductors and LCD panels. Our main products in the
Eye Care field are eyeglass and contact lenses, used by
countless people every day.
At first glance, it may be difficult to discern the
association between the two fields of business. Even the key
concept of “glass,” which has been Hoya’s core business
since the beginning, may not provide a completely adequate
explanation. In fact, our Eye Care field utilizes many non-glass
materials: almost 90% of all eyeglass lenses are made of
plastic.
If you asked me for a single word that links both fields, I
would proudly say that Hoya is in the business of “light.”
Optical lenses, eyeglass lenses, contact lenses—all of these
products refract light in ingenious ways. Mask blanks and
photomasks as well are products that assist fine processing
through adjustments in light patterns. For many years, Hoya
has excelled in the production and high-precision polishing
of advanced glass materials as well as technologies for
coating glass plates with several layers of thin film to enable
light to be manipulated in diverse ways.
So the concept of “light” is the key to understanding the
synergies between the two fields that define Hoya’s business.
At Hoya, we are determined to continue to grow by adeptly
balancing these two fields.
Review of Fiscal 2005 Results
Consolidated results for fiscal 2005 were as follows.
Consolidated net sales rose 13.5% on the previous year to
reach ¥308,172 million. Operating income was up 24.6%
year on year to ¥84,920 million, and ordinary income grew
34.5% to ¥89,525 million. Net income increased 62.2% to
¥64,135 million. During the first half of the fiscal year under
review, reflecting the strong growth in demand for digital
consumer electronics, demand in the Electro-Optics division
was actually stronger than our ability to maintain supply.
During the second half, however, demand softened for digital
cameras and other digital consumer electronics products.
When major manufacturers in the market began cutting
back production, it affected our results.
Hoya was bold with investments during the fiscal year
under review, based on its assessments of future market
demand. In August 2004, a new optical lens plant in China
came on line and an intraocular lens (IOL) plant in Singapore
commenced production. We opened an LCD photomask
plant in Taiwan in January 2005. In Thailand, Hoya invested in
the construction of a new eyeglass lens plant and increased
capacity at an HDD glass disk plant. We expect that returns
on these investments will become apparent during the fiscal
year already started and beyond.
I am delighted to present a report on Hoya’s consolidated results for the fiscal year ended March 31,
2005, together with an overview of our future business direction.