[Special Feature] Interviews with Independent Directors:
Perspectives
Lead Independent Director
Chairperson of the Audit Committee, Member of the Nomination Committee, Member of the Compensation Committee, Member of the Healthcare Compliance Committee
Insights from Hiroaki Yoshihara
In last year’s Integrated Report, you commented that “it is most urgent for HOYA to create the businesses that will drive clear growth for the future.” From your perspective as the lead independent director, how do you view the progress HOYA has made in creating and acquiring new businesses?
The Company’s strategy for the growth of each of its businesses in the near future is very clear. Meanwhile, a roadmap for medium- to long-term growth strategies is being drawn up under the in-house-company structure introduced in October 2022. The Board of Directors are engaged in ongoing discussions and are verifying a strategy that balances profitability and growth over the medium to long term. This review is founded on a firm awareness of HOYA’s management resources, such as its technological and production capabilities, human capital, and its positioning with the customers and markets it serves.
Independent Director
Chairperson of the Nomination Committee, Member of the Compensation Committee, Member of the Audit Committee, Member of the Healthcare Compliance Committee
Insights from Yasuyuki Abe
I believe succession planning for the CEO and other key positions within the Company is an important point. From your perspective as Chairperson of the Nomination Committee, are there any issues you are aware of, including from the perspective of leadership development?
In my view, it is critical for the key members who will lead the future of HOYA to understand the history of the Company from its establishment in 1941 to today, as well as the current strengths of HOYA. On top of that, the Nomination Committee will provide advice on the development of human resources who can lead the company's growth in the future.
Independent Director
Member of the Nomination Committee, Member of the Compensation Committee, Member of the Audit Committee
Insights from Takayo Hasegawa
I have heard that since you took office as CEO of SWCC Corporation, you have been promoting internal reforms using ROIC (return on invested capital) as a yardstick. How do you rate HOYA’s management from the standpoint of efficiency?
I think it is very commendable that HOYA has a well-functioning business division system in terms of securing profits, and that it conducts business activities with a strong awareness of year-on-year growth by setting high profit margin targets. ROIC is also exceptionally high, and since most of the businesses are generating returns well above WACC (weighted average cost of capital), this metric does not appear to be suitable for HOYA. Although the Tokyo Stock Exchange has raised ROIC as a major indicator, I think it is critical to consider KPIs that match the characteristics of a company and its growth. As such, I believe that HOYA’s method of adopting a hurdle rate is reasonable in light of its current business situation.
Independent Director
Chairperson of the Healthcare Compliance Committee, Member of the Nomination Committee, Member of the Compensation Committee, Member of the Audit Committee
Insights from Mika Nishimura
Technological innovations in the field of health care, such as the deployment of robotics and AI, are underway. Given your extensive experience in the life science field, what are your expectations for the growth potential of HOYA’s Life Care business?
In life sciences, medical devices are increasingly married to AI-based predictive or personalized algorithms to help clinicians optimize patient management. For HOYA, many of our life care devices are based on our unique optical technology. With such rich imaging data coupled with patient information, I can see a future where AI-based models will help identify who is at risk for further disease progression and create tailored solutions for each individual.
Independent Director
Chairperson of the Compensation Committee, Member of the Nomination Committee, Member of the Audit Committee
Insights from Mototsugu Sato
It has been a year since you were appointed as an Independent Director of the Company. How would you evaluate HOYA’s global business development reflecting back on your own global management experience?
The HOYA Group’s business portfolio strategy is exhaustive, and its global businesses are optimally rolled out locally based on market needs. Also, decisions are made quickly and appropriately with sound delegation of authority. On the other hand, I would like to see the Company expand and develop management talent who can lead businesses and cross-functional functions from a Group perspective across business domains.
