Pentax 2014 Annual Report Download - page 5

HOYA REPORT 2014
Rewarding shareholders through dividend
hikes and share repurchase
As CEO, I recognize that an effective use of the cash component of our balance sheet is an
important challenge. In the past several years, we have actively but cautiously considered
various M&A opportunities, as M&A is one of the ways to grow our business. However, the
high valuation of targeted companies tends to be a major obstacle and has caused us to
achieve far less success than anticipated. In the coming years, we will keep looking for
possibilities and wish to fill in gaps in our business portfolio one by one.
There is no need to keep accumulating more cash than needed. In fiscal 2014, we raised the
annual dividend from 65 yen in the previous year to 75 yen and executed a share repurchase
program with a maximum of 10 million shares and ¥30 billion. We forecast that the HOYA
Group´s amount of capital expenditures will be far less than the amount of depreciation in the
foreseeable future, as the Life Care segment, due to the nature of its products, requires only
about one-third of the amount of capital expenditures of the Information Technology segment,
where we will minimize capital investments mainly for the purpose of maintaining advanced
technologies. Moreover, the Life Care segment is expected to generate stable and growing
sales and profit, which will allow us to remain cash-rich for some years. We plan to actively
allocate resources in M & A opportunities and R & D investments. Further, we intend to use
excess cash to reward shareholders, with appropriate timing.
Concluding message
HOYA has achieved many years of growth by constantly modifying its business portfolio and
offering products and services which satisfy the needs of the times. In fiscal 2014, the profit
which was steadily generated in the Information Technology segment was injected into the
Life Care segment, which then became better prepared to expand coverage and accelerate
global growth. I feel strongly that our business portfolio has become closer to how it ought to
be. I am determined to keep managing the HOYA Group with a sense of speed.
HOYA is able to maintain its youthfulness and adapt to changes in the environment by keeping each
business segment in as good condition as possible and by constantly shuffling and optimizing its
business portfolio. In this sense, there is no end to our quest for HOYA´s ideal portfolio.
As a person who was entrusted the precious assets of our shareholders, I am determined to
make my utmost efforts in managing the company. I thank you for your continuing support and
understanding.
Hiroshi SUZUKI
President & CEO
Copyright 2014 © HOYA CORPORATION