Pentax 2007 Annual Report Download - page 45

43
6 . 25
6 . 25
12 . 50
12 . 50
12 . 50
25 . 00
22 . 50
15 . 00
37 . 50
30 . 00
30 . 00
60 . 00
35.00
30.00
65.00
80
60
40
20
0
2003 2004 2005 2006 2007
5 , 000
4 , 000
3 , 000
2 , 000
1 , 000
0
100
80
60
40
20
0
2003 2004 2005 2006 2007
41 . 8
21 . 6
3 . 7
1 , 787
28 . 9
14 . 5
5 . 2
2 , 537
20 . 4
17 . 2
4 . 7
2 , 950
27 . 7
19 . 7
7 . 3
4 , 750
20.2
17.1
4.6
3,910
100 , 000
80 , 000
60 , 000
40 , 000
20 , 000
0
5 , 000
4 , 000
3 , 000
2 , 000
1 , 000
0
FY 2006 FY2007
Disclaimer
This report is provided solely for the purpose of reference to those investors making their own evaluation of the
Company at their own risk. We accept no liability whatsoever for any direct or consequential loss arising from any use
of this report.
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
Business Risk
The main items believed to be potential risk factors for development of the businesses of the Hoya Group are described below. Matters
concerning forward-looking activities included in these statements are based on information evaluated by Hoya’s management as of the date
these materials were prepared.
Fluctuation of Exchange Rates
As the Hoya Group develops its business on a global scale, if the
currencies of those countries in which the Hoya Group has major
manufacturing operations appreciate, export prices of its products
would rise, which would incur an increase in costs on a consolidated
basis. If the currencies of those countries in which the Hoya Group
has major sales operations depreciate, it would bring about a decrease
in sales.
Influence of International Situations
At present, the situation in some countries, is extremely tense.
Hereafter, in the event that movement of people, goods or money were
restrained extraordinarily in a certain region, or if certain unexpected
events took place in those countries in which the Hoya Group has
business operations—including changes in the political, economic or
legal environments, labor shortages, strikes, or natural calamities, etc.—
certain problems may arise in the execution of business operations.
Our Business as in Production Goods
Every part of the Electro-Optics products range, which constitutes a
major portion of the Hoya Group revenue, involves intermediate
production goods, components or materials. Therefore, growth of the
business thereof is affected substantially by the market conditions of
such products as semiconductors, LCD panels and HDDs that are
manufactured utilizing the Hoya Group products, and by that of personal
computers and home appliances, etc. that are manufactured utilizing the
resultant products.
Emergence of Discounters and
Lowering of Prices in the Consumer Goods Sector
In recent years in the eyeglass and contact lens markets, discount
shops of an unprecedented type have emerged and brought about a
lowering of prices. If the influence of such discount shops swells to an
extent that cannot be absorbed by the Hoya Group’s cost reduction
efforts and strategies for adding high value both in Japan and abroad,
the business results and financial condition of the Hoya Group might be
adversely affected.
Competence for Developing New Products
In the industrial sector to which Hoya Group belongs, technological
advances are swift and the Hoya Group strives at all times to develop
state-of-the-art technologies. However, if the Hoya Group fails to
sufficiently predict changes in the sector and markets or to develop new
products that meet customer needs in time, the business results and
financial condition of Hoya Group might be adversely affected.
Competition
The Hoya Group, which has the top market share for its many products
in their respective sectors, is constantly exposed to relentless
competition. There is no guarantee that the Hoya Group can maintain its
overwhelming market share and compete efficiently in future. If
customers shift allegiance due to cost pressures or inefficiency of
Hoya’s competitiveness, the business results and financial condition of
Hoya Group might be adversely affected.
Production Capacity
At present, the Hoya Group reinforces its production capacity so as to
meet orders that exceed existing production capacity in multiple
business areas. However, if the setting up of such capacity were
delayed for any reason, it would affect not only the Hoya Group’s results
but also the production and sales plans of its customers, which might
bring about increased market share for its competitors, etc., and
adversely affect the business results and financial condition of the
Hoya Group.
New Business
New business is important for future growth. In the event that no
promising new business is developed, the growth of the Hoya Group
might not be achieved as planned. Besides, the Hoya Group may carry
out mergers and acquisitions as a part of its business strategy. If
unexpected obstacles emerge after such acquisition and unscheduled
time and costs are required, the business results and financial condition
of the Hoya Group might be adversely affected.