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From CEO
Copyright 2013 © HOYA CORPORATION
1Fiscal year ended March 2013 Result Review
*1 Discontinued businesses include the following:
PENTAX digital camera business (sold on October 1,
2011)
HDD glass memory disk business (magnetic coating)
(sold on June 30, 2010)
*2 The pretax profit margin of the Life Care segment
(continuing business only) is based on pretax profit
which excludes the Thai flood-related insurance
income and gain on step acquisitions.
      During the fiscal year ended March 2013
(from April 1, 2012 to March 31, 2013), Hoya's
consolidated sales amounted to ¥372,494 million,
down 1.2% year on year. Excluding sales contributed
by the PENTAX Imaging Systems Business, which was
sold in October 2011, in the first half of the previous
fiscal year, sales increased by 3.3% year on year.
The Life Care segment recorded sales of ¥208,968
million, up 8.3% year on year, and grew to contribute
56% of group sales. The Eyeglass Lens division, the
main business of the segment, suffered from a
significant drop in production and sales due to the
massive flooding that occurred in Thailand in October
2011 (the previous year).
However, the steady recovery through the year has
enabled the division's sales in the fourth quarter
(January-March 2013) to surpass the pre-flood level.
Medical Endoscope division continued steady
expansion in the fiscal year under review. The
Intraocular Lens (IOL) division also showed steady
results in the first half. In the third quarter (October-
December 2013), upon receiving higher than expected
reported rates of inflammation and/or endophthalmitis
for some IOL products, we voluntarily suspended
shipments and recalled those products. I apologize
deeply to those concerned for any inconvenience and
worries this might have caused. While the interruption
of production and voluntary recall of IOLs had a slight
impact, the Life Care segment achieved an increase in
sales and earnings thanks to steady growth of other
divisions.
Meanwhile, the Information Technology segment
posted sales of ¥161,216 million, down 11.5% year on
year, due to a slowdown in market growth of
semiconductors, flat panel TVs, laptop computers, and
other final products which use Hoya's products. Sales
decreased only 2.8% if sales in the PENTAX Imaging
Systems Business, which was sold to Ricoh Company,
Ltd. in October 2011, were excluded.
Profit before taxes amounted to ¥89,368 million, up
52.7% year on year, including special factors such as
insurance income of ¥32,187 million related to the
damage from the Thai floods, a foreign exchange gain
of ¥12,539 million due to the weaker yen during the
second half, and losses from equity-method
investments of ¥11,912 million. Even after excluding
these extraordinary factors, profit before taxes for the
current year was higher year-on-year. By segment, the
Life Care segment posted a pretax profit of ¥63,954
million and a segment profit margin of 30.6%.
Excluding ¥32,187 million in insurance income as part
of compensation for damage caused by the Thai floods
in October 2011 and ¥2,238 million as a gain on step
acquisitions, segment pretax profit would have been
¥29,529 million with a profit margin of 14.1%. In the
meantime, the Information Technology segment
recorded profit before tax of ¥31,841 million and a
segment profit margin of 19.7%.