Pentax 2014 Annual Report Download - page 7

HOYA REPORT 2014
In the field of minimally invasive surgery, while the aging population drives demand for
healthcare, governments in many countries have started to take measures to reduce
medical expenditures as a part of overall drive to curb public spending. HOYA´s
endoscopy products and intraocular lenses will contribute simultaneously to the
enhancement of medical services and a reduction in medical costs, as a form of minimally
invasive medical treatment. They are also generating strong expectations about
possibilities in the future. For example, early endoscopic diagnosis and early treatment
can significantly improve positive outcome of the treatment at a significantly lower cost
than late stage intervention. Going forward, we believe the enhancement of the quality of
medical services and the reduction of medical costs as well as the ability to achieve these
two factors simultaneously will become increasingly important, and will further drive the
development of minimally invasive surgery.
Aiming to grow at a higher rate than the market
for eyeglass lenses
The eyeglass lenses business posted an increase in revenue compared to the previous year
due to the recovery from the floods in Thailand in October 2011, the acquisition of new
customers, the effect of higher sales from the acquired Seiko Epson Corp. in February
2013, and the impact of the weaker yen. In contrast, pretax profit declined but this was
because, in the previous fiscal year, HOYA posted insurance income of ¥32.2 billion relating
to the flood damage in Thailand and one-time profits such as a ¥2.2 billion gain on step
acquisitions, associated with the acquisition of shares of an eyeglass lens manufacturing
and sales subsidiary in Brazil. Actual profit based on normal business activities increased
compared to the previous year.
The global eyeglass lens wholesale market is estimated to be growing at a rate of several
percent, but in the fiscal year under review, HOYA´s eyeglass lenses business achieved
sales growth that substantially outpaced this. This growth was driven by overseas
markets, which account for 80% of sales, including Europe, Asia, the United States, and
South America.
The rate of profit growth, which temporarily declined due to the flooding in Thailand,
improved steadily throughout the year. This is mainly attributable not only to the recovery of
customers that were lost due to the Thai floods but also the maintenance of high factory
utilization rates through the second half of the year amid a sharp increase in transaction
volume stemming from the start of trading with new customers.
The global eyeglass lens market has become polarized between high-end products, such
as progressive lenses (PAL) that utilize advanced design technology and customized lenses
that are made to suit individual life styles, on one hand, and low-priced eyeglasses,
especially single-focus lenses, on the other. HOYA´s excellent optical design technologies
and coating technologies display strong competitiveness, particularly in the high-end
market. Moreover, by raising productivity in the manufacturing of progressive lenses to
single-focus lenses, we are delivering products efficiently to customers around the world. In
the fiscal year ended March 31, 2015, we plan to construct a mass production plant
(capacity expansion). In anticipation of demand growth associated with the global aging
population and economic growth in emerging markets, we intend to accelerate sales
expansion globally.
Ayutthaya plant in Thailand
Copyright 2014 © HOYA CORPORATION