Pentax 2014 Annual Report Download - page 19

HOYA REPORT 2014
Life Care segment
Health Care related products
Sales of eyeglass lenses posted a large increase from the preceding consolidated fiscal
year. This was due to the recovery in sales from the impact of the flooding in Thailand in
October 2011, the additional sales from the eyeglass business acquired from Seiko Epson
Corporation during the fourth quarter of the preceding consolidated fiscal year, the
depreciation of the yen and the last-minute demand before the rise in consumption tax rate.
On the other hand, HOYA posted a large drop in profit before tax, as a result of the factors
in the preceding consolidated fiscal year, which include extraordinary profits of 32,187
million yen from insurance proceeds for the flood damages in Thailand and 2,238 million
yen in gains related to the step acquisition of shares of subsidiary. These were recorded in
the profit before taxes as extraordinary profit and therefore, profits in real terms increased
from the preceding consolidated fiscal year.
Sales of contact lenses increased due to new store opening of “Eyecity” specialty stores
and reinforcing promotional campaigns at existing stores. Last-minute demand toward the
rise in consumption tax rate helped boost sales above those of the preceding consolidated
fiscal year.
Medical related products
Sales of medical related products trended favorably to post an increase from the preceding
consolidated fiscal year thanks to sales growth of new high-end series products, which was
launched in the fall of 2012, as well as the depreciation of the yen. While sales were strong
in major advanced countries in Europe, overall sales in Europe dropped due mainly to sales
erosion in Russia, which extended sales in the preceding consolidated fiscal year. On the
other hand, sales in the Asia Pacific did well, particularly with strong sales in China and
Southeast Asia. In the North American market, sales grew considerably over the preceding
consolidated fiscal year for video colonoscopy processors and scopes.
During the fourth quarter of the preceding consolidated fiscal year, production of some
intraocular lens (IOL) products was suspended and a voluntary recall of the product was
Conclusion of an Agreement on Transfer of
Eyeglass Lens Manufacture Business and Alliance in Marketing
On November 16, 2012, HOYA Corporation concluded an agreement with Seiko Epson
Corporation to transfer Seiko Epson's eyeglass lens development and manufacture business
to HOYA, and on February 1, 2013, executed the transfer of the business as planned.
At the same time, HOYA concluded an agreement with Seiko Holdings Corporation (hereinafter
referred to as "Seiko"), with the aim of a global strategic alliance in the marketing business of
eyewear-related products between the two companies, to acquire 30% of the shares in Seiko
Optical Products Co., Ltd., which engages in the said business as a wholly-owned subsidiary
of Seiko, on February 1, 2013 and an additional 20% on March 31, 2014.
It must be noted that the originally scheduled share transfer on February 1, 2013 was delayed
as greater than expected time was needed to conduct the Anti-Trust Act review in the People’
s Republic of China. Upon completion of the review, HOYA received 30% of the shares on
June 1, 2013 and the additional 20% on the originally scheduled March 31, 2014. As a result,
Seiko Optical Products Co., Ltd. is now a consolidated subsidiary of HOYA.
This will bring together the expertise of the three companies for developing, producing and
marketing eyeglass lenses and eyewear-related products, which has been accumulated
separately, and we will endeavor to enhance the products and services to satisfy our
customers and dealers around the world.
Copyright 2014 © HOYA CORPORATION