Business Portfolio Management

Source of Our Strengths: Business Portfolio Management

HOYA’s portfolio management aims to secure profitability, stability, and growth potential of the Group as a whole by operating multiple businesses with different characteristics in terms of business model, sensitivity to economic cycles, etc., to diversify risk.

We examine each business to determine its stage in the lifecycle and allocate more management resources to areas with higher growth potential. We construct our business portfolio based on the survival of the fittest principle by, for example, withdrawing from a business that has lost its competitive edge.

The present two business areas for portfolio management are Life Care and Information Technology.

HOYA Group’s Sales by Segment Mar. 2020: Life Care 62%, Information Technology 37%

The HOYA Management System

Based on the idea that “the accumulation of short-term results will produce long-term growth,” we conduct rapid-cycle reviews and improvement activities on a quarterly basis.

After receiving explanations on growth strategy and operating results from each business division, executive officers make decisions on the allocation of management resources to each business as well as any business downscaling or withdrawal decisions, which is the foundation of our business portfolio management.

The HOYA Management System

Areas of Focus over the Next 10 Years

We will continue to rebalance our business portfolio on an ongoing basis without being constrained by what we are now to foster budding growth areas for the next 20 to 30 years.

Accelerating growth in the Life Care business

Along with the aging global population and growth of the middle-class population derived particularly from economic growth in emerging countries, demand is increasing for adapting medical infrastructure to improve the quality of life (QOL). In view of this background, we regard the Life Care business as a growth engine and will actively develop competitive products and undertake bolt-on acquisitions (i.e., acquisitions designed to supplement the functions of existing businesses) in this business.

Revitalizing the Information Technology business

The Information Technology business maintains product groups with high market share and has been a mature business with limited room for further growth. However, we are now beginning to identify certain areas that can be revitalized as a result of technological breakthroughs and have resumed investment in such areas. More specifically, we have identified two business areas of particular importance: mask blanks that are compatible with next-generation EUV lithography technologies in semiconductor manufacturing and glass substrates for data center HDDs, the market of which is expected to grow in response to the increasing volume of data creation. We will make investments in these areas in terms of technology and production capacity to achieve growth in sales and profit.

Creating new business areas

As the renewal of the business portfolio is becoming a potential problem, we will strive to rebalance it as appropriate by acquiring new businesses through M&A. We are currently considering “medical services” and “semiconductors”-related areas as major themes and will try to enter specific niche segments within these areas where we are likely to secure a leading position to achieve sustainable growth.