Pentax 2012 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ...Glass disks for hard disk drives â-Optical lenses/glasses â-Lens modules for digital camera â-Micro lenses â-Lazer equipments â-Eyeglass lenses â-Contact lenses and accessories â-Medical endoscopes â-Intraocular lenses â-Bone prosthesis â-System architecture Imaging Health Care Medical...

  • Page 3
    ..., President & CEO Director, Executive Officer & CFO Executive Officer, Technology * Mr. Yuzaburo Mogi, Ms. Eiko Kono, Mr. Yukiharu Kodama, Mr. Itaru Koeda and Mr. Yutaka Aso are outside directors as indicated in the 15th item, Article 2 of the Companies Act. Copyright 2012 © HOYA CORPORATION

  • Page 4
    ... Plant) was established. 1961 Oct 1962 May HOYA listed on the Second Section of the Tokyo Stock Exchange. The manufacture of eyeglass lenses began. 1967 Apr The company launched progressive multifocal lenses. 1970s 1972 Dec 1973 Feb The production of soft contact lenses began. HOYA listed...

  • Page 5
    ... of IC substrates. The company introduced online ordering system for eyeglass lens. 1980s 1983 Jan Hachioji Plant (Tokyo) was constructed and production of photomasks for semiconductors began. 1984 Aug The Company renamed HOYA Corporation, and the current Head Office was completed. 1985 May...

  • Page 6
    ... system. HOYA transferred its global financial management operations to regional HQ in Europe. 2004 Mar Oct HOYA acquired the HDD glass disk business of Nippon Sheet Glass Co., Ltd. HOYA established a Level 1 American Depositary Receipt (ADR) program. 2005 Nov 2006 Mar HOYA common stock...

  • Page 7
    ...Care Division. HOYA sold the HDD glass media manufacturing business. HOYA transferred the specialty glass business for imaging sensor to its wholly owned subsidiary, HOYA CANDEO OPTRONICS. 2011 Oct HOYA sold PENTAX Imaging Systems business to Ricoh Company, Ltd. Copyright 2012 © HOYA CORPORATION

  • Page 8
    Products HOYA secures stable earnings and sustained corporate growth by adopting portfolio management with multiple business segments. Copyright 2012 © HOYA CORPORATION

  • Page 9
    ...photomask manufacturers in Japan and overseas. In addition to ensuring a stable supply of high-quality products, HOYA customizes its products to suit the process of each customer. It thus provides high added value, including contributing to the improvement of customer yields. Toward Progress in the...

  • Page 10
    ... of mask blanks and photomasks. As the leading company in mask blanks, HOYA will continue to support the semiconductor industry by developing state-of-the-art technologies. IBD (Ion Beam Deposition) system to form reflective Mo/Si multilayer for EUV lithography Copyright 2012 © HOYA CORPORATION

  • Page 11
    ...-quality, high value-added products by making use of the technologies it has cultivated through the development of semiconductor photomasks. LCD photomasks Toward Further Growth In addition to the spread of LCD TVs, recent years have also seen the explosive growth of smartphones. This has resulted...

  • Page 12
    ... in the quality of glass memory disks. In this environment, HOYA will continue to respond to customer needs through the stable production of high-quality products by taking advantage of its technological excellence. Glass disk (substrate) plant in Vietnam Copyright 2012 © HOYA CORPORATION

  • Page 13
    ... HOYA will continue to support the further evolution of optical lenses by taking advantage of its integrated system of production, from glass materials to finished lenses, and by developing glass materials that add value to products. Aspherical molded glass lenses Copyright 2012 © HOYA CORPORATION

  • Page 14
    ... looking at objects at various distances, in different directions of gaze and while moving. INTEGRATED DOUBLE SURFACE DESIGN (iD) iD is HOYA's patented, award-winning design technology that separates the surface geometry of progressive lenses into two components: vertical and horizontal, positioned...

  • Page 15
    ... secures a high level of customer satisfaction through its high-quality customer service. As a result, it has continued to expand its business steadily and maintains the largest share in the contact lens retail market in Japan. At each Eyecity store, well-experienced professional staff, equipped...

  • Page 16
    ...-quality lenses. In 2011, HOYA transferred the headquarters of this business from the United States to Singapore. The company has since been working on expanding the business in the global market. IOL plant in Singapore Pre-loaded IOL delivery system "iSert™" Copyright 2012 © HOYA CORPORATION

  • Page 17
    ... the i-Series endoscope systems, which permit the megapixel resolution of images. With a wide array of products, including video scopes and fiberscopes, and high-quality after-sales services, HOYA contributes to diagnosis, treatment, and medical research in diverse departments, including those...

  • Page 18
    ... the quality of life of patients, by enabling them to rise up the day after surgery. In 2012, HOYA could gain a foothold through entering the market for metallic implants, which has a size of 120 billion yen. The company is determined to focus its efforts on the development of new products combining...

  • Page 19
    ...'s business strategy. In other words, HOYA seeks to maintain its position as an industry leader in the niche market where it creates pioneering products. HOYA maintains high market share and maximizes corporate value by creating new markets with its proprietary technologies. Copyright 2012 © HOYA...

  • Page 20
    ...the profitability, stability, and growth potential of the Group as a whole, while maintaining a balance among its multiple, diverse business segments. HOYA allocates investments according to changing times, working to both maximize corporate value and ensure sustained growth. Copyright 2012 © HOYA...

  • Page 21
    HOYA is operated and managed through global consolidated group management. The independent management teams of business segments, including Information Technology and Life Care are responsible for executing management strategies. Regional headquarters in America, Europe and Asia support business ...

  • Page 22
    ... local staff to management roles. Global Management HOYA accelerates the globalization of management in step with the globalization of its businesses. Among various businesses, the three Life Care businesses (medical endoscopes, eyeglass lenses and intraocular lenses) for which business strategies...

  • Page 23
    ...changed its management benchmark from return on equity (ROE) to shareholder value added (SVA), which takes into consideration the cost of capital. ROE, an index that emphasizes the effective use of capital, measures the profit a company has made using the capital that its shareholders have entrusted...

  • Page 24
    ... the first Japanese companies to begin disclosing cash flow statements quarterly together with the traditional financial statements. From early on, HOYA has sought to emphasize capital efficiency in its management. Cash Flow Cash and cash equivalents, end of year Copyright 2012 © HOYA CORPORATION

  • Page 25
    ...system, HOYA has gradually reduced the number of directors, and in 1995 began appointing outside directors. The current Board of Directors comprises five outside directors and three internal directors, for a total of eight. With more than half of the Board coming from outside the Company, management...

  • Page 26
    ... of the HOYA Group had been managed under the supervision of the Headquarters Environmental Conference as the supreme decision-making body headed by the CEO. In October 2008, the environmental protection organization and the occupational safety and health organization of the Group were merged with...

  • Page 27
    ... structure according to the HOYA Group Environmental Protection Standard for Facility, which was issued in March 2010 in anticipation of the revision of the Water Pollution Control Act in June 2012. The makeover will include the installation of leak detecting tubes between the coating sheet and the...

  • Page 28
    ... of HOYA's Eye Care Division, have been carrying out the Eye City ECO Project since 2010. This project aims to promote the recycling of the empty cases of the now-mainstream disposable contact lenses recovered at 193 outlets of ours in Japan. The empty plastic cases recovered by those retail outlets...

  • Page 29
    ... plan is to promote further energy saving through effective utilization of the demand monitors. Also, in consideration of this power supply situations, the Koka plant carried out a replacement of 200 lamps by energy-saving type fluorescent lamps in the summer of 2011. As a result, it could achieve...

  • Page 30
    ... throughout Japan and overseas. In October 2008 the Company integrated its environmental protection and occupational safety and health systems. Environmental protection and occupational safety and health activities are now carried out under a new system headed up by the HOYA Group Director for...

  • Page 31
    ...enhance the performance of occupational safety and health systems, audits are conducted on a regular basis at facilities in Japan and overseas by a director and staff of the HOYA Group Environmental Protection and occupational safety and health. Measures are in place for implementing their providing...

  • Page 32
    ..." Structure HOYA corporation employs a "company-with-committees" management system, which was created as a result of a legislative amendment in June 2003. Under the "company - with - committees" management system, by giving executive officers authority to manage business, business decision makings...

  • Page 33
    ... major business plans, a detailed information is provided to outside directors through means such as presentations by division managers regarding products and the competitive environment. Executive Officers At HOYA, three persons - namely, the Chief Executive Officer (CEO), Chief Financial Officer...

  • Page 34
    ... worked for the HOYA Group ・ Those who have a family member (spouse, child or blood relatives or in-laws up to the second degree) who have held the position of a director, executive officer, auditor or management employee in the past 5 years. ・ Those who...

  • Page 35
    ... Company's business environment and the levels set by other companies as determined by a survey conducted by an outside professional organization. (iv) Stock Options In order for newly-appointed Directors and Executive Officers to share the same perspective as shareholders in regards to share price...

  • Page 36
    ... results. Each head is also obligated to seek to further improve internal control systems, with the objectives of maintaining compliance, effectiveness and efficiency of work practices, the reliability of financial reporting and the integrity of management assets. The Audit Department at HOYA Global...

  • Page 37
    ... HOYA Business Conduct Guidelines established based on the Management Policy and Management Principles of the Group, and shall undertake educational activities as required. The HOYA Group will reinforce the effectiveness of such activities with the HOYA Help Line, an intra-Group system for reporting...

  • Page 38
    ..., the HOYA Help Line, as an internal reporting and consultation system for the Group. If there is an act that contravenes the law or the HOYA Business Conduct Guidelines, the HOYA Help Line is intended to enable early identification of the problem and quick reporting to top management, while...

  • Page 39
    ...number of countries covered, giving the HOYA Help Line worldwide coverage. Full Disclosure and Investor Relations Activities HOYA considers fair and prompt disclosure of information and other investor relations activities to be a fundamental duty of management. The Company also values communication...

  • Page 40
    ... to Japan Industrial Policy Research Institute(JIPRI) Advisor to the Industrial Bank of Japan (IBJ) President of The Shoko Chukin Bank Chairman of the Japan Information Processing Development Corporation (present post) Director of the Company (present post) Chairman of the Mechanical Social Systems...

  • Page 41
    ... the Company President of HOYA Corporation USA 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...

  • Page 42
    ... incorporated and at times whether research and development is heading in the right direction. This approach is the natural result of every outside director engaging in the job as if they themselves were managing HOYA. The days of Japanese companies experiencing soaring growth like they used to...

  • Page 43
    ...rule. Globalization remains a major issue not only for HOYA but for Japanese companies in general. In HOYA's case, from CEO Suzuki on down, executive officers have extensive experience overseas, global perspective and a firm grasp of international business. In fact, HOYA was among the first in Japan...

  • Page 44
    ... years working. Unlike the auto industry, where a company is focused on developing and manufacturing a single type of end product, HOYA covers an extremely broad range of businesses, from the Group's high-tech parts and materials to eyeglass lenses and medical-related products- the sum of all these...

  • Page 45
    ... conditions, simultaneously managing multiple businesses of different types is a difficult task, but I believe that HOYA's four executive officers (three of whom are also internal directors) are doing a fine job of assigning responsibilities in a balanced manner and steering the Company ahead. Going...

  • Page 46
    ... HOYA Corporation's flexible endoscope business division announced today that it opened a legal entity and office in Shanghai, China on July 5. This will mark a significant advance into the Chinese medical equipment market. Read moreâ†' October 1 HOYA announces closing of sale of the PENTAX imaging...

  • Page 47
    ..., center of Germany's medical technology frontier, Digital Endoscopy develops innovative endoscopic imaging products with expertise in software-based computer architecture and optical illumination technologies. Read moreâ†' Apr 2 Members of Digital Endoscopy GmbH HOYA Lens Thailand re-opens its...

  • Page 48
    ... production, we are producing stable revenues while maintaining overwhelming market share. In the year under review, we strengthened customer relations by promoting development more in line with the specific needs of individual customers. Glass memory disks for hard disk drives made further progress...

  • Page 49
    ...levels by summer 2012. In the Eyecity contact lens specialty store business, online advertising and other aspects of our brand strategy paid dividends as store visits increased, and we maintained a firm grip on the top share of the domestic market. Japan's market for intraocular lenses is the second...

  • Page 50
    ...While Striking a Balance with Profitability The Great East Japan Earthquake was a powerful reminder of the importance of risk management. In the year under review HOYA constructed a production plant for mask blanks in Singapore and a melting facility for optical glass in China, with a view primarily...

  • Page 51
    ... Technology and Life Care. Moving forward, we will make new business creation a priority while considering M&A as an option in order to further enhance our business portfolio. We thank our shareholders and customers for their ongoing support and understanding. Copyright 2012 © HOYA CORPORATION

  • Page 52
    ...the group companies, HOYA managed to share its expertise, competence and advanced proprietary technologies among the group's divisions. With this strong background at its core, HOYA Group's Vision Care Division has focused on research, development and production of high quality ophthalmic lenses and...

  • Page 53
    ... business - Key Figures Over 12,000 employees 46 Local RX Labs located in 21 countries 52 Countries covered : 31 with direct Subsidiaries and 21 through Partners Over 64,000 active accounts globally [excluding Partner Network] Global Mass Production Facilities located in Thailand, Vietnam, China...

  • Page 54
    ... of supply chain management. In 1974, ahead of many other Japanese companies, HOYA opened its first mass production plant of eyeglass lenses in Thailand, followed in year 2000 by the first of the three global RX Super Lab facilities. Since then, the Global Production center in Thailand has became...

  • Page 55
    ...in the local RX laboratories, mainly in the premium segment of customized progressive lenses. Consequently, compared to normal business circumstances, HOYA recorded a negative impact of about 18 billion yen in sales and about 12 billion yen in operating profit in the second half of fiscal year ended...

  • Page 56
    ... Japan, to support the local teams in increasing production output and meeting the market demand. As an example, in Europe the individual country labs connected into a flexible network and based on a 24/7 schedule and extra-ordinary investment in additional equipments, the entire region managed...

  • Page 57
    ... as a lesson learned, HOYA refined its global production strategy by setting the goal for a balanced, safe and stable supply chain, through a well determined level of production decentralization. HOYA's eyeglass lens division is the first of the group's divisions to implement this new direction as...

  • Page 58
    ... Experience Centers opened in Budapest, Shanghai and Malaysia. HOYA will continue its quest in pursuing growth in the key emerging markets by building on its Multi-Brand / Multi-Channel strategy with a special focus on China, India and Brazil. Lens Simulation Center Part of this growth is supported...

  • Page 59
    ... in the 1980s and acquisition of an optical lens plant. This marked the company's full-fledged transition from manufacturing a material, glass, to producing a processed product, lenses. At the time, camera manufacturers still manufactured lenses themselves. HOYA therefore entered the market from the...

  • Page 60
    ... decade provided even greater impetus for adoption of aspherical molded lenses, which developed into an essential component for making cameras smaller and lighter. In this way HOYA developed its businesses from manufacturing optical glass to optical lenses. Copyright 2012 © HOYA CORPORATION

  • Page 61
    ... lenses produced by aspherical lens pressing after transforming glass material into preform. Pressing of Optical Glass Nd-Vd Diagram [Enlarge] In this way, HOYA is a reliable supplier of several thousand optical glass pressed products and lenses every month. Copyright 2012 © HOYA CORPORATION

  • Page 62
    ...As the leading company in optical lenses, HOYA will continue working to improve R&D and manufacturing technologies to enable us to provide superior products, from high added-value glass to lenses. Digital cameras will likely continue to play an important role in people's lives. Global demand is also...

  • Page 63
    ... in lenses, an indispensible component of those eyes HOYA intends to utilize its integrated system of glass material development, lens processing and mass production to continue helping customers in need of optical glass and optical lenses as their valued partner. Copyright 2012 © HOYA CORPORATION

  • Page 64
    ..., to 37,527 million yen. On July 1, 2011, an agreement was reached and concluded between HOYA and Ricoh Co., Ltd. to transfer the PENTAX Imaging Systems Business to Ricoh and the transfer was executed on October 1, 2011. As a result, the Business is classified as a discontinued operation from this...

  • Page 65
    ...Sales of contact lenses grew, thanks to an increase in the number of customers visiting directly-managed stores, a sales expansion of products with high added value, and an increase in the number of stores, resulting from aggressive opening of new stores. Medical related Products Medical endoscopes...

  • Page 66
    Sales Profit before tax/Ratio of profit before tax Copyright 2012 © HOYA CORPORATION

  • Page 67
    ... HOYA is operated and managed through global consolidated group management. The independent management teams of business segments, including Information Technology, and Life Care, are responsible for executing management strategies. Regional headquarters in America, Europe and Asia support business...

  • Page 68
    ... Pharmaceutical Affairs Act in Japan and other regulations. As a result, sophisticated technologies and highly reliable quality control systems are critical for smooth business operation in this sector. The Other Businesses segment mainly offers information system services, and takes charge of new...

  • Page 69
    ...a result, the Business is classified as a discontinued operation from the fiscal year under review. Flood Damage in Thailand The massive flooding that occurred in Thailand in October 2011 inflicted damage directly to two plants at HOYA LENS THAILAND LTD., which is HOYA's flagship manufacturing site...

  • Page 70
    ... of single lens digital cameras. In the life Care business, eyeglass lens business recorded the reduction in sales and profit caused by the loss of sales opportunities due to the suspension of operation of the flagship plant for eyeglass lenses as a result of the flooding in Thailand, in addition...

  • Page 71
    Profit Ratios Profitability Stock Price Data

  • Page 72
    ... between returning profits to shareholders, employee welfare benefits, and supplementing internal reserves to fund future growth. HOYA's policy regarding internal reserves is to continue to actively appropriate resources for marketing for consumer products, primarily in the medical field, while...

  • Page 73
    ... for semiconductor in Singapore and glass melting facility in China. They were partly accounted for the amount of capital investment in the fiscal year under review. Furthermore, the massive flooding in Thailand that occurred in October 2011 flooded HOYA's eyeglass lens production site and forced it...

  • Page 74
    ...fiscal year. The main positive factors were profit before taxes from ...mainly due to a total of ¥28,003 million in dividends paid (up ¥32 million year on year). As a result of the above, the balance of cash and cash equivalents as of March 31, 2012, was ¥204,772 million, a year on year increase...

  • Page 75
    Net cash provided by operating activities Subsequent Events Nothing of note. Copyright 2012 © HOYA CORPORATION

  • Page 76
    ...limited to fluctuation of exchange rates and interest rates, international situations, market trends and economic conditions, competition, production capacity and research and development capabilities and so on. Please refer to Business Risk. The information posted on this HOYA Annual Report website...