Communication with Shareholders and Investors

Communication with Shareholders and Investors

Basic Policy

By strengthening two-way communication with shareholders and investors, Sharp aims to build a relationship of trust with the stock market and increase its corporate value.

In line with this, Sharp not only discloses information in a fair, timely, and appropriate manner but also proactively creates opportunities for its senior executives to engage in dialogue with shareholders and investors.

Information Disclosure

Not only does Sharp disclose information designated under the laws and regulations of Japan; it also discloses in detail any information that it deems useful to stakeholders, such as business overview, management policies, and strategies. In particular, for financial results, presentation materials, and other items of high interest to shareholders and investors that require rapid reporting, as a rule Sharp posts the English versions on its IR website at the same time that the Japanese versions are released.

General Shareholders’ Meetings

Sharp strives to create an environment that enables shareholders to easily exercise their voting rights. Efforts include disclosing notices of the meetings before they are sent out, posting English notices about the meetings and other information on its website, participating in an electronic voting platform (for institutional investors), allowing shareholders to exercise voting rights via the Internet or their smartphones, and publishing securities reports prior to the meetings. Additionally, Sharp makes other efforts, such as providing enhanced explanations of its management policies at the general shareholders’ meeting, to facilitate shareholders’ understanding of its management policies and business operations.

At the general shareholders’ meeting, senior executives engage in frank dialogue with shareholders after explaining the current situation, management philosophy, and other matters while making use of presentation materials.

Financial Results Briefings, One-on-One Meetings

In addition to the general shareholders’ meeting, Sharp strives to create opportunities, such as financial results briefings, management policy briefings, and business briefings, for its senior executives to communicate with shareholders, investors, and analysts. Sharp also conducts individual and group meetings as needed, which include participation in conferences hosted by securities firms. Whenever senior executives are unavailable, the IR division meets with shareholders and investors. And for highly specialized topics like ESG, the IR and other relevant departments work together to engage in dialogue with shareholders and investors.

Main Items Discussed and Feedback to Senior Executives

The IR division compiles the concerns and opinions of investors gleaned from these dialogues and regularly provides feedback to senior executives and relevant departments, striving to incorporate this information into company management and business activities, including the formulation of management policies.

In fiscal 2024, there was a great deal of interest in the progress being made in structural change, including the asset-light reform of the device business and the growth strategy for the brand business. There were also many questions about what Sharp is doing to improve its financial standing.

Enhancing the IR Website

Sharp maintains an accessible and easy-to-understand IR website. It is compatible with smartphone viewing and has a page tailored for individual investors. Also, Sharp has given the home page an intuitive and easy-to-access design which, in addition to allowing the latest IR materials to be accessed immediately, offers a robust array of content, such as “Sharp at a Glance,” which provides a compact summary of a variety of information, including financial data. There are also pages providing graphs of major performance data. In fiscal 2024, we worked to improve usability by providing links to related information on each page of the IR website.

Preventing Insider Trading

Sharp has effectuated regulations restricting insider trading, established strict controls on undisclosed material facts (“insider tips”), and instituted restrictions on the buying and selling of stocks and other securities. Sharp has also implemented in-house training related to insider trading. This training includes, among other approaches, an educational campaign on the corporate intranet that targets Sharp Group employees in Japan with the aim of preventing insider trading by Sharp Group directors, audit and supervisory board members, executive officers, or employees.

In addition, given the importance of disclosure, when “material facts specified in the Financial Instruments and Exchange Act” and/or “important company information that should be disclosed in a timely manner as stipulated by securities exchanges” is generated, Sharp does its utmost to promptly disclose and publicize the relevant details. In meetings with the media, analysts, and investors, Sharp fully honors the spirit of disclosure and remains attentive so as not to violate insider-trading regulations.

Basic Policy on Allocating Profits

Sharp considers distributing profits to shareholders to be one of management’s top priorities. It comprehensively takes into account consolidated business performance, financial situation, and future business development, while making active investments in R&D and other areas and strengthening the financial standing from a long-term perspective. Sharp’s basic policy is to ensure stable dividends.