Pentax 2010 Annual Report Download - page 2

Apr. 1985
May 1993
Jun. 1993
Jun. 1997
Apr. 1999
Jun. 1999
Jun. 2000
Jun. 2003
video(2:26min)
Joined the Company
President of HOYA Corporation USA
Director of the Company
Managing Director of the Company
Managing Director of the Company
President, Electro Optics Company
Executive Managing Director of the Company
President and Representative Director of the Company
Director, President, Representative Executive Officer and CEO
of the Company (present post)
Fiscal 2010, the year ended March 31, 2010, was a difficult period for business, marked by a global economic slump
that followed the financial crisis in the US. However, as Hoya struggled to address this harsh business environment, we
made dramatic structural reforms that have transformed the Company into a leaner, more muscular organization which
could ride out the economic storm and prepare for a renewed growth phase. I would like to take this opportunity to thank
Hoya customers and shareholders for their support over the past year, and discuss the company´s current position, and
prospects for the future.
Review of Fiscal 2010
At the start of fiscal 2010, Hoya faced an extremely harsh business climate. There was no sign of a letup in the
economic slump, and we approached the new fiscal period with a real sense of crisis. Market demand – particularly for
digital products such as semiconductors, PCs, LCD panels and the like – plunged to extremely low levels at the end of
fiscal 2009, and the industry as a whole was forced to conduct extensive inventory adjustments. Hoya had little choice
but to respond to this slump with aggressive measures to slim down operations. We temporarily suspended production in
several business segments, and made exhaustive efforts to reduce fixed costs to a level that matched the low sales
levels. By summer, the strict production cuts and inventory adjustments began to take effect, and demand began to
recover rapidly. However, this rebound was more sudden than expected, and it took some time to adjust to the improved
demand conditions. Thus, even though volume rebounded in the latter part of the year, unit prices remained weak, and
have yet to regain the levels they held before the economic crisis. Consequently, even in the second half, we continued
to face a rather difficult earnings structure.
In the Eye Care and Medical businesses, demand remained fairly solid even in the immediate wake of the "Lehman
Shock". Earnings contributions from these segments remained relatively firm. Although we have been trying to
accelerate business expansion by investing in growth segments, during fiscal 2010 it was necessary to place the
emphasis on balanced earnings, and Hoya had to cut back investments in future growth businesses. Consequently,
Hoya will need to review the roadmap for future growth, and address the associated issues during fiscal 2011.
Due to the business conditions described above, consolidated net sales for the period declined 9.0% year on year, to
¥413,524 million. Operating income rose 8.9%, to ¥64,327 million, ordinary income was down 18.7% year on year, to
¥57,805 million, but net income increased by 50.8%, to ¥37,875 million.
Although the adverse business climate caused sales to drop off, year on year, the efforts we made to improve Hoya´s
cost structure have turned the Company into a leaner, more muscular organization. As a result, operating income
registered year-on-year growth. Furthermore, the asset impairment losses and write-offs that Hoya booked in fiscal
2009, on the Pentax business, among others, amounted to ¥30.4 billion. Since these items disappeared from the
accounts in fiscal 2010, net income grew more than 50% year on year.
In the Information Technology business, Hoya´s Electro-Optics Division posted ¥143,375 million in net sales, a decline
of 12.5% year on year. Operating income fell 27.4% to ¥28,823 million.
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