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HOYA REPORT 2014
(AERs), and Seiko Optical Products Co., Ltd. HOYA´s
consolidated subsidiaries. Both companies are expected to
greatly contribute to reinforcing our existing businesses.
Let me add that the mature markets of the Information
Technology segment also present M&A opportunities for us to
raise market shares and enhance businesses.
In fiscal 2014, we could not accomplish as much in M&A as we
initially planned in the Life Care segment, partly because
valuations were obstacles. From the viewpoint of investing shareholders' capital in areas
which would definitely generate return, we remain diligent and careful in considering M&A
opportunities now and will be so in the future.
Aim to be “a big fish in a small pond”
HOYA aims at sustainable growth by changing business formats in response to changes in
the times and the environment and by reinventing itself. Nevertheless, there is one thing we
have not changed since our foundation: Namely, our philosophy of being "a big fish in a
small pond." We focus on niche markets or products where we have special strength, work
to establish a dominant advantageous position in each of them, and thereby maximize
profits. The Life Care segment may appear to be engaged in an immense market. However,
segmentation into small slices has enabled us to select niche markets matching our
strength (= small ponds) and become big in those niche areas (= acquire high market
shares). Globally, countries and regions may have different market structures, which may
require us to adapt business models accordingly. I believe that the HOYA Group is more
than ever required to accurately comprehend the environment and areas where we can
prevail, and to accordingly execute our "a small fish in a big pond" strategy. In contrast, in
the Information Technology segment, we have already become a big fish in some
businesses and can be able to survive even if the pond itself may shrink.
Further progress in the corporate governance structure
Enhancement of a corporate governance structure is another theme, which we have
emphasized for many years. At the Ordinary General Meeting of Shareholders of June 2014,
Mr. Yuzaburo Mogi (Honorary CEO and Chairman of the Board of Kikkoman Corporation),
resigned as an outside member of our Board of Directors. Since 2001 when he assumed the
post, he became chair of the Nomination Committee and had took a leading role in the Board.
I am immensely appreciative of his enormous contribution of many years. HOYA has adopted
the “company with committees” management system. The Nomination Committee,
comprised of six outside directors, selects candidates for director posts and submits
nominations to the General Meeting of Shareholders for approval. In order to enable the
Board to make an impact on the company, candidates for outside directors are required to be
persons who can express their valuable opinions on management issues and make an impact
thereby, on the basis of extensive experience in business management. One such person is
Mr. Takeo Takasu, former President and Representative Director of Namco Bandai Holdings
Inc., who was nominated and approved by our General Meeting of Shareholders in 2014. We
look forward to Mr. Takasu´s contributions to raising HOYA´s corporate value.
Board of Directors
(Approved at the Ordinary General Meeting
of Shareholders of June 18, 2014)
Director
(Independent) Yukiharu Kodama
Director
(Independent) Itaru Koeda
Director
(Independent) Yutaka Aso
Director
(Independent) Yukako Uchinaga
Director
(Independent) Mitsudo Urano
Director
(Independent) Takeo Takasu
Director Hiroshi Suzuki
Targeted M&A Opportunities
Expand coverage in
untapped markets
Expand market share in
existing markets
Acquire new products or
new technologies
6 Outside Directors
1 Internal Director
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