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HOYA REPORT 2014
Aiming for
top global market share
for all products
Executive Officer & COO, Information Technology
Eiichiro Ikeda
Profit growth achieved in fiscal 2013 due to
effects of restructuring
In fiscal 2014 (from April 1, 2013 to March 31,
2014), the Information Technology segment
recorded sales of ¥159.3 billion, down 1.2%
year-on-year. Sales of semiconductor related
products, LCD related products, and glass
disks for hard disk drives (HDDs) were strong,
but digital camera related products posted
weak sales due to sluggish demand. In contrast,
as HOYA actively undertook restructuring measures in the face of a shrinking market
outlook, the earnings structure improved further and segment profit (profit before tax)
reached ¥35.9 billion, up 12.7%, and the segment profit margin improved 2.8 basis points
to 22.5% from 19.7% in the previous year.
Information Technology businesses operate in
mature markets
Markets for HOYA´s major products in the Information Technology segment are
tending to contract, as these products depend on the final products of notebook PCs
and digital cameras and demand in these final markets is shifting toward smartphones
and tablets. On the other hand, semiconductor related products are maintaining
stable earnings because HOYA has high market share and the same applies to LCD
related products thanks to abundant development demand in the 4K and large TV
domains. Nevertheless, we expect growth to slow or the size of markets to tend to
contract, as these markets are mature, and sales are therefore likely to continue to
decline in the Information Technology segment in the near term. As HOYA´s
Information Technology businesses operate in such markets, we have focused on
creating a structure that can generate stable cash flow over the long term by further
improving our competitiveness while both curbing investment and cutting costs. The
results of this endeavor have already become apparent in fiscal 2014, and I intend to
direct this business segment by continuing to focus on the “maximization of cash
flow” from the current fiscal 2015 onward.
Strategic policies
Aim for stable earnings in
mature markets
1
Maintain dominant leading-
edge technological
capability and
competitiveness
2Expand earnings through
exhaustive cost cutting
3Concentration and
selection
4Maximize cash flow
Copyright 2014 © HOYA CORPORATION