Communication with Shareholders and Investors

Communication with Shareholders and Investors

Basic Policy

At Sharp, we aim to deepen our relationship of trust with the capital markets and enhance corporate value through fair, timely, and appropriate information disclosure, as well as by strengthening two-way communication with shareholders, investors, and securities analysts.

Information Disclosure

Not only do we disclose information designated under the laws and regulations of Japan, we also disclose in detail any information that is useful to stakeholders, such as business overview, management policies, and strategies. For timely disclosure of information such as financial results and financial presentation materials, which are of high interest to shareholders and investors, we generally disclose them simultaneously in both Japanese and English. For other information, in addition to the Japanese version, we also disclose it in English whenever possible.

General Shareholders’ Meetings

We strive to create an environment that enables shareholders to easily exercise their voting rights. Efforts include posting information on our website such as notices of the meetings before they are sent out and English notices about the meetings, 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, we make other efforts, such as providing enhanced explanations of our management policies at the general shareholders’ meeting, to facilitate shareholders’ understanding of our 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, we strive to create opportunities, such as financial results briefings, management policy briefings, and business briefings, for our senior executives to communicate with shareholders, investors, and securities analysts. We also conduct individual and group meetings, which include participation in conferences hosted by securities firms. Whenever senior executives are unavailable, the IR division meets with shareholders and investors.

Main Items Discussed and Feedback to Senior Executives

The IR division compiles opinions gleaned from these dialogues and, as appropriate, 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 2025, there was a great deal of interest in the progress being made in structural change, including the asset-light reform of the device business, the growth strategy for the brand business, what we are doing to improve our financial standing, and new business initiatives.

Enhancing the IR Website

In addition to having a dedicated section for individual investors, we are enhancing our IR website by adding content such as “Sharp at a Glance,” which provides a concise summary of performance and financial information, and graphs of key performance figures. We have also created an environment where investors can quickly access necessary IR materials, including by adopting an intuitively accessible design and making it compatible with smartphone displays.

In fiscal 2025, we revised the page layout to further improve the usability of the website.

Preventing Insider Trading

We have 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. We have 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, we do our utmost to promptly disclose and publicize the relevant details. Regarding inquiries from the media, analysts, and investors, we fully honor the spirit of disclosure and remain attentive so as not to violate insider-trading regulations.

Basic Policy on Allocating Profits

At Sharp, we consider distributing profits to shareholders to be one of management’s top priorities. While maintaining stable dividends as a basic principle, we are committed to returning profits to our shareholders from a long-term, holistic perspective that takes into account such factors as our consolidated performance, financial condition, and future business development. In this regard, we plan to implement dividend payments and other measures while being mindful of trends in consolidated performance, investments, the need to improve our financial standing, and other considerations.