Maximizing Corporate Value

Hoya firmly believes that shareholders are ultimately satisfied when a company earns a return on investment in excess of its cost of capital and corporate value is increased. To achieve this goal, a Shareholder Value Added (SVA) system was introduced as a primary management benchmark. In addition, Hoya has always demonstrated that it is a pioneer among Japanese corporations in the area of corporate governance. In 1995, Hoya adopted an outside director system and switched to a committee structure in June 2003, from which time outside directors accounted for a majority of the Board of Directors. As a result, the Company was able to establish a corporate governance structure enabling better monitoring of the board and fairer management decisions. This structure helps to maximize corporate value because it entrusts day-to-day operations to five operating officers and increases the speed of decision-making and responses to challenges.

As a global enterprise, Hoya operates businesses worldwide, focusing on optimal local production and optimal local sales so that the Company does not limit the allocation of management resources to the Japanese market only. As a result, overseas ratios of both production and sales exceed the domestic ratios. Our globalization efforts also encompass effective human resource development. More specifically, Hoya ensures that management takes into consideration the culture and customs of each region by filling senior management roles at some divisional headquarters and overseas subsidiaries with highly qualified local personnel.

To operate its business，Hoya created an organization with divisions and companies to ensure greater accountability for results. Each division and company executes the business strategies drawn up by global headquarters with the legal and audit support of regional headquarters under a global matrix system.

Create New Value to the Next Era

In the fiscal year ended March 2008, Hoya completed an integration with PENTAX, in which Hoya took over operations in medical equipment including endoscope, digital cameras, and peripheral businesses. In particular Hoya will accelerate the development of the growing medical equipment business. Together with its existing Eye Care and Health Care segments, Hoya will turn it into another business pillar that will exceed the profitability recorded by the Electro-Optics business. Following the PENTAX integration, we are now better placed to offer products and services that meet the needs of sophisticated and diversified markets, combining the technological capabilities and know-how developed by the two companies over many years. The Hoya Group remains committed to creative and innovative efforts at the operating-level to maximize its corporate value.


October 1 , 2009

Hiroshi Suzuki, President and Chief Executive Officer