Pentax 2006 Annual Report Download - page 23

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Optician/Glasses Shop
HELP
Computation
Lenses cut to fit the
designated frame
HOYA
Cut
System
HOYA
host
computer
Laboratories
(Special order
processing)
Data entry
Finished design
is confirmed
through a 3D
image simulation
฀
Online
Order
System
High
precision
lenses
Tracer
Europe Rebounds with Solid Growth
Sales in Europe rebounded nicely from a year earlier, mainly in Germany, where a change in government health insurance policies
caused a significant disruption in the market the previous year. The relocation of the Vision Care headquarters to the
Netherlands during the period will allow Hoya to focus more closely on the entire European market, which is expected to grow
as standards of living rise and the European Union expands. In anticipation of the market expansion, Hoya is devoting resources
to establishing new distributor channels and strengthening partnership relationships, conducting seminars for opticians, training
sales representatives and hiring new personnel, and devising other strategies to grow business throughout the continent. This
broad-based sales strategy is centered on local control, and should produce steady annual growth.
Brand Recognition on the Rise in North America
Sales rose in North America, although margins remain tight in the key U.S. market due to structural differences in terms of both
marketing and distribution, together with Food and Drug Administration (FDA) regulations that limit the degree to which Hoya
can exploit its cutting-edge technologies. Nevertheless, extensive marketing efforts to establish relationships with retailers,
particularly independent ophthalmologists, is solidifying the Company’s U.S. base, and recognition of Hoya’s high-value-added
products is rising.
Asia-Pacific Offers a Diversified, Growth Scenario
The Asian market grew substantially during the fiscal year ended March 31, 2006. Asia is extremely diverse in terms of structures
and income levels, however, with differing strategies necessary for each country. Hoya continues to expand its share in the
region, particularly in South Korea, although sales in Australia have doubled over the last five years. The Company’s premium
products have achieved high recognition in both of these markets. China will be a key market once rising living standards boost
demand for premium products, and Hoya is devoting resources to establishing connections in the country that will leave it well
placed for future growth in this promising market.
Future Continues to Look Bright
Hoya expects to continue its strong growth in all overseas markets while maintaining its leading share in Japan. Supporting this
growth is a substantial investment in a new IT system (an upgraded version of Hoya’s current HELP system) that will allow for
greater flexibility, interconnectedness and localization, including customer-specific interfaces and global internal sourcing. This
system, which is scheduled to come on line in mid-2006, will reinforce the Company’s local focus and ensure speed and flexibility
to support global business development. We expect a continued rise in sales in this business.

Eye Care Vision Care Division
The HOYA Excellent Lens Production (HELP) System
The HELP system is supported by a leading-edge computer system that handles everything from complex data calculations to the cutting of lenses. Glasses can
be ordered while creating simulations of finished products.
The HOYA Excellent Lens Production (HELP) System
Lenses arrive
in three days
to one week