Pentax 2015 Annual Report Download - page 6

Expansion in the Eyeglass Lenses Business
Eyeglass Lenses to Drive Growth in the Life Care Segment
—Review of the Fiscal Year
During the year under review, within the Life Care segment, the
eyeglasses business made major strides. In February 2013, the
Seiko Eyeglass Lens development and manufacturing business of
Seiko Epson Corporation was acquired by HOYA. Thereafter, we
completed the acquisition of 50% of the shares of the eyeglass-
related sales business of Seiko Optical Products Co., Ltd., which is
a subsidiary of Seiko Holdings Co., Ltd., and, as of March 31,
2014, it became a subsidiary of HOYA. As a result, we have
brought together research and development, manufacturing, and
other functions which the three companies have brought to a high
level on their own and are now strongly positioned to provide customers throughout the world with superior HOYA,
SEIKO, and PENTAX products and services across a broad product range.
In existing business domains also, we saw favorable growth in revenues, mainly in overseas markets, and reported
major expansion in the eyeglass lens business.
Expansion in the global market for eyeglass lenses is said likely to be in the 2% to 3% range, but, during the
period under review, HOYA continued to grow market share. Particularly strong growth was reported in the
European markets. On the one hand, sales expanded significantly through a major retail chain that we commenced
transactions with in fall 2013, and, on the other hand, we were able to show robust increases in sales to customer
segments other than major chain retailers. By product, sales of our new “MyStyle” progressive lenses, which are
suited to individual lifestyles, showed favorable expansion, and this contributed to overall growth in revenues.
Going forward, by strengthening our marketing tailored to each customer segment, we want to accelerate growth
in sales. In the year under review, we continued to expand our footprint in emerging markets, as we established
our direct presence in Argentina and Turkey.
The North American market is one area where HOYA can expect major growth going forward. During the period
under review, sales of progressive lenses and specialty coated lenses, especially through independent eyeglass
stores, expanded and contributed to overall sales growth. Compared with other markets, HOYA’s share in North
America presents attractive growth potential. We are working to expand our range of products suited for the North
American market and strengthen our sales infrastructure. In addition, during the year under review, we began
operations at a state-of-the-art plant in Dallas, Texas, that concentrates our specialty processed product
manufacturing lines. By working effectively together with laboratories in various parts of North America, we are well
positioned to efficiently and promptly supply our customers.
South America presents additional growth opportunity for HOYA, as our direct presence there is limited to Brazil,
where we continued to gain market share, and the recently started Argentina operations.
In the Asia Pacific region, revenue expanded, principally in Australia, Taiwan, South Korea, and elsewhere, and, as
a result, we reported favorable performance. On the other hand, in the Japanese market, where we have a high
market share, revenues for the fiscal year declined year on year along with the shrinkage in the market. Factors
accounting for this were a reactionary drop in demand following the surge in demand prior to an increase in the
consumption tax in April 2014 and trends in the market which have made sale of high-priced items more difficult.
Growth is expected in both of these fields along with the
increase in the aging population and expansion in middle-income population along with economic development in
the emerging markets, which are both forecast to bring expanded health care needs. Looking ahead, the demand
for better products and services will expand and medical needs will become more diverse. On the other hand, we
think that the initiatives in all countries to reduce medical costs and other factors will broaden the possibilities for
business expansion in many areas. In response to these trends, we will provide superior products and services,
and, thereby, contribute to realizing healthy and comfortable lives for the peoples of the world.
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