Pentax 2009 Annual Report Download - page 17

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OPTICAL LENSES
Fiscal 2009 Business Overview and Results
Utilizing a complete production system capable of manufacturing
everything from material glass to processed optical lenses, Hoya
supplies high-value-added optical products that are used in optical
devices such as digital cameras and video cameras.
In the fiscal year under review, the digital products market was
robust in the first half, but end-user demand dropped in the second
half under the impact of the economic downturn. Starting in the
third quarter, manufacturers implemented sharp production cut-
backs. Strongly affected by the large-scale declines in orders and
the falling market prices, sales of the Company’s optical lenses
declined from a year earlier.
Hoya’s aspherical molded lenses— its forte— have contributed
much to the digital device market, particularly to making compact
digital cameras smaller and lighter and with greater picture defini-
tion. During the fiscal year under review, the Company supplied the
market with high-value-added products, such as concave meniscus
aspherical lenses, and developed and introduced new types of
optical glass demonstrating special optical properties. Moreover,
Hoya began to expand orders for medium- and large-diameter
optical lenses for digital single lens reflex (SLR) cameras. However,
the sudden deterioration in the market resulted in sales falling
below original expectations.
Future Strategies
Since price declines are expected to continue in the digital products
market, strengthening cost competitiveness is the chief issue being
addressed by Hoya. At the same time, the Company does not
intend to let up on its product and technology development efforts.
While making further progress with development of new optical
materials, it is concentrating on establishing a stable supply organi-
zation capable of meeting customers’ quality and cost requirements.
To strengthen cost competitiveness, Hoya primarily worked to
reduce fixed costs during the fiscal year under review. In future, the
Company will also strengthen its profit structure by improving pro-
duction efficiency, reducing such variable costs as outsourcing and
materials expenses, and improving product yields.
Among other activities, Hoya has established the Technology
Center within Akishima Plant, the Company’s main domestic base.
The center is being used to enhance the Company’s advanced
technology development programs and to provide production
technology guidance to Hoya’s overseas plants.
Aspherical molded lenses
Aspherical molded lenses have
excellent aberration correction
properties, which enables the
use of fewer lenses. By increas-
ing the degree of freedom in
optical design, this feature
contributes to more compact,
lightweight, and functionally
sophisticated optical products.
15
HOYA Annual Report 2009