Pentax 2014 Annual Report Download - page 13

HOYA REPORT 2014
In fiscal 2014, sales of semiconductor related products increased due to a rise in sales
volume for products used in smartphones and tablets combined with the effect of a
weaker yen. The semiconductor market is growing at a moderate pace, but we do not
expect substantial market growth for mask blanks for semiconductor production because
of limited leading-edge development activities at semiconductor makers, which are the
main earnings driver. However, HOYA is maintaining stable earnings by virtue of its strong
technological capabilities and high market share, and in fiscal 2014 as well, we achieved
high earnings through product development in cutting-edge fields and continued cost-
cutting measures.
LCD related products also recorded an increase in sales, driven by continued demand for
small and medium-sized photomasks with high precision and high resolution for
smartphones and tablets as well as demand for large photomasks used for 4K and
large-screen TVs. At present, as panel makers in Japan, South Korea, Taiwan and China
are all promoting the development of high-resolution panels, there is an increasing
tendency to demand photomasks with unprecedented high quality. By leveraging our
expertise in the production and development of semiconductor photomasks, we are
focusing on providing unrivalled high-value-added masks, and in fiscal 2014, we also
sharply boosted profitability by raising productivity at manufacturing plants.
Although the market for notebook PCs equipped with HDDs is declining in tandem with
growing demand for tablets, sales of glass disks for HDDs (substrates) were supported
by replacement demand for Windows XP in the corporate sector, and sales related to
non-notebook PC applications, such as next-generation game consoles and servers,
were robust. In fiscal 2014, our market share rose further due to the progress of industry
reorganization, and profit increased year-on-year, as we rapidly promoted consolidation of
our production bases to cope with market contraction.
The markets for compact digital cameras and interchangeable lenses are shrinking rapidly
mainly due to growing demand for smartphones and a slump in sales stemming from
China´s economic slowdown. HOYA´s business performance was weighed down in
particular by a substantial drop in sales of molded lenses and lens modules for compact
digital cameras. Faced with such an environment, we stepped up efforts to boost sales of
high-value-added glass materials and high-end medium- and large-diameter lenses for
SLR cameras and high-end compact cameras. Moreover, although we endeavored to
expand sales of optical products for products other than digital cameras, namely, car-
mounted cameras, sports cameras and smartphones, we were unable to offset the
decrease in digital camera related sales, and overall sales of imaging related products
consequently declined. In terms of profit, however, as we rapidly reduced costs to
address the rapidly shrinking market, we managed to maintain the level of profit.
Semiconductor related products
LCD related products
Glass disks for HDDs
Imaging related products
Mask blanks and photomasks for the
production of semiconductor chips
Large-sized photomasks for the production of
LCD panels
Glass disks for HDDs (substrates)
Optical glass Lens modules
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