- Social Initiatives
- Promoting Supply Chain CSR
- Quality / Customer Satisfaction
- Communication with Shareholders and Investors
- For Local Communities
- Efforts Related to Human Rights
- Human Resource Development / Personnel System
- Diversity Management
- Activities to Support Work-Life Balance
- Promoting Occupational Safety and Health
Communication with Shareholders and Investors
|FY2020 Objectives||FY2020 Achievements||Self-Evaluation|
|Priority Objectives for Fiscal 2021||
IR Disclosure Policy
Sharp discloses information to shareholders and investors in a fair and timely manner, in order to increase trust in its IR activities and to ensure a proper assessment of Sharp’s corporate value in capital markets.
Sharp discloses information designated under the laws and regulations of Japan, and it also adequately discloses other information, such as business overview, management policy, and strategy.
Basic Policy on Allocating Profits
Sharp considers distributing profits to shareholders to be one of management’s top priorities. Sharp pays dividends from surplus, comprehensively taking into account its 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. In line with this, Sharp’s basic policy is to ensure stable dividends at a payout ratio of 30%. For fiscal 2020, the annual dividend paid per common share was 30 yen, which represents a payout ratio of 34.4% and an increase of 12 yen per share compared with the previous fiscal year.
On February 26, 2021, Sharp acquired and canceled as compensation for common shares all of the outstanding shares (795,363 shares) of Class C stock, which are equivalent to common shares for dividend payment purposes. As a result, no shares issued since the start of management reconstruction in 2015 remain, which are in share classes that would complicate investors’ decision-making.
Communicating with Investors
With regard to its communications with institutional investors and analysts, Sharp conducts one-on-one meetings and holds management policy briefings and quarterly financial results briefings. Sharp senior executives take part whenever possible in conferences organized by securities companies in Japan and overseas, where they explain and answer questions on financial results, management policy, and business strategy. In recent years, due to a growing focus on ESG, an increasing number of investors are including medium-to-long-term value creation in their investment decision-making. Sharp has been increasing inter-departmental cooperation in response to this trend. Sharp will continue to use IR activities to help a wide range of investors better understand Sharp’s management situation and business policy, with the company’s senior executives being actively involved to ensure the strength of IR-related communications. Sharp’s IR department also keeps the senior executives updated on the reputation of Sharp and market views on the segments where we operate.
General Shareholders’ Meeting, Management Briefings
Sharp strives to create an environment that enables shareholders to easily exercise their voting rights. Efforts include sending out early notices of the meetings, disclosing notices of the meetings before they are sent out, participating in an electronic voting platform (for institutional investors), posting English notices about the meetings on its website, and allowing shareholders to exercise voting rights via the Internet.
Also, after the general shareholders' meetings, Sharp holds management briefings to exchange opinions with shareholders on topics which are not limited to the agenda of the general shareholders' meetings.
IR Activities Designed to Meet the Diversifying Needs of Investors
In response to diversifying needs, Sharp makes every effort to properly disclose a wide range of information promptly and accurately, and enhance its communication with shareholders and investors in Japan and overseas.
Detailed financial information is disclosed in IR documents that include summaries of financial results and presentation materials. ESG-related information is attracting considerable interest these days. In this area, Sharp is enhancing the content of its integrated reports and providing detailed explanations in presentation materials covering financial results.
In addition to updating and expanding information on the IR website, Sharp has made the site compatible with smartphone viewing. Sharp also provides information needed by investors in a timely manner, including trends in major performance data, financial materials, and reports given at briefings. There is also a webpage dedicated to individual investors, where they can easily access relevant information presented in an easy-to-understand format.
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. Further, regarding media and analyst coverage, Sharp deals with it while fully honoring the spirit of disclosure and remaining attentive so as not to violate insider-trading regulations.