Business Strategy Meeting (PDF:1.2MB)

Sharp Corporation
May 17, 2010
Ⅰ. Sharp’s achievements in fiscal year 2009
Ⅱ. Action to realize mid-term vision
(1)
(1) Sharp’s
Sharp’s business
business targets
targets
(2)
(2) Sharp’s
Sharp’s key
key businesses
businesses
- Large-size LCD, LCD TV
- Medium / small-size LCD,
Mobile phone / Smartphone
- Health and environment, Solar cell
1
Ⅰ. Sharp’s achievements in
fiscal year 2009
2
Sharp’s achievements in fiscal year 2009
Reducing
Reducing the
the costs
costs and
and reforming
reforming corporate
corporate structure
structure
Recovery plan
Reduce total costs by 200 billion yen
compared to FY2008
Achieved the target of total
cost reduction
Reduced total costs by 213.8 billion yen
Reduced variable costs by 116.6 billion yen
Reduced fixed costs by 97.2 billion yen
LCD
New business model
- Establishing value-chain at
the area of consumption
- Alliances with local companies
Signed an agreement for LCD panel
production project in China
(August 2009)
Solar cell
Signed an agreement for the production
of thin-film solar cells and photovoltaic
power generation business
(January 2010)
3
Sharp’s achievements in fiscal year 2009
Achievements
Achievements in
in Sharp’s
Sharp’s key
key businesses
businesses
Action plan
LCD
Achievements
LCD
Solar cell
- Started operation of LCD plant in Sakai
(36K/month, operating since Oct. 2009)
- Development of UV2A technology and Four
primary color technology
- strengthen both crystalline and thin-film
Solar cell
- start operation of LCD plant in Sakai
Mobile phone
- Increase market share in Japan
- Expand global business
Health and environment
- Vertically integrated business model
for Plasmacluster Ion, LED lighting
and products incorporating solar cells
- Started operation of thin-film solar cell plant in
Sakai (operating since March 2010)
Mobile phone
- Increased market share in Japan by
commercializing new products incorporating
high resolution CCD camera and solar panel
- Expanded product line-up for the Chinese
market
Health and environment
- Sales of products incorporating Plasmacluster
Ion technology made a significant contribution
to profits
-Expanded the product line-up of LED lighting
4
Financial results and forecast
Net sales
(Billions of yen)
900
800
(Billions of yen)
50
814.5
747.8
735.1
735.3
731.9
690.3
700
36.4
27.6
30
21.0
29.3
10
598.2
549.6
600
Operating income
14.3
-15.8
-10
500
-30
-26.0
400
-50
300
-70
200
-90
100
0
1Q
2Q
3Q
4Q
FY2008
FY2008
1Q
2Q
3Q
4Q
-90.3
-110
1Q 2Q
FY2009
FY2009
3Q 4Q
1Q
2Q
3Q
4Q
FY2009
FY2009
FY2008
FY2008
(Billions of yen)
FY2010
FY2009
Change
Forecast
(Y on Y)
Net sales
Change
(Y on Y)
2,755.9
-3.2%
3,100.0
+12.5%
Operating income
51.9
-
120.0
+131.2%
Net income
4.3
-
50.0
+1,037.1%
5
Ⅱ. Action to realize mid-term
vision
6
Ⅱ. Action to realize mid-term
vision
(1)
(1) Sharp’s
Sharp’s business
business targets
targets
7
Structural change in global economy and
Sharp’s business targets
Transition
-carbon society
Transition to
to low
low-carbon
society
Global
-making shift
Global decision
decision-making
shift from
from G7
G7 to
to G20
G20
20th century
21st century
Fossil energy
(Coal/Petroleum, etc.)
Renewable energy
(Solar Energy, etc.)
Developed countries
led by G7
Emerging countries
including G20
“What
“What is
is desired"
desired"
-- Technology
Technology for
for energy-creation
energy-creation and
and energy-saving
energy-saving
to
realize
both
economic
growth
and
reduction
to realize both economic growth and CO
CO22 reduction
-- Lower
Lower cost
cost to
to compete
compete in
in emerging
emerging countries
countries
8
Becoming an Eco-Positive Company
Sharp aims to realize a low-carbon society with its environmentally-conscious
factories, as well as energy-creating and energy-saving technologies
Create a green society
DC Eco-house
Eco-office/LEDs
Power generation business
Environment
Trigeneration
Products incorporating
solar cells
New LCDs
Energy-creation
Energy-saving
(Solar cell)
(LCD)
Balance
Balance “environmental
“environmental contribution”
contribution” and
and
“creation
“creation of
of electronics
electronics products
products for
for realizing
realizing aa new
new society”
society”
“Eco-Positive” does not mean that a company has no negative impact on the environment. Rather, “Eco-Positive Company” is
a phrase Sharp uses to indicate the ideal state of a company in terms of environmentalism; it is the state Sharp aims to achieve.
9
Sharp’s mid-term business targets
Solutions business
Expand value chain
Engineering business
- Propose total solutions to the client
- Strengthen B to B business
- Propose total-solution systems
(Hardware/software/maintenance)
- Royalty income by providing
know-how
Developed countries
(G7)
Emerging countries
Potential target; household
with $10,000 income
Diverse market
- Costs to match the emerging countries
-Product planning and sales promotion
targeting households with
$10,000 income
Current
Current business
business
category
category area
area
- Hire local staffs
- Match the costs to fit the emerging
countries (material procurement/ design/
production)
Stand-alone products
Focus on value of each product
10
Change in corporate structure (April 1, 2010)
FY2009
- Planning Dept.
- Business Strategy
Development Dept.
International
Business Group
FY2010
Global Business
Planning Group
General Manager of
Administration
General Manager of
Administration
General Manager of
Emerging Markets
Development
CEO Americas
CEO Europe
CEO China
CEO Asia and Africa
Strategic Planning Dept.
China Dept
Managed by Headquarters
Global Market
Development
Group
General Manager of
Emerging Markets
Development
General Manager of
Central & South Africa
CEO Asia and Africa
Strategic Planning Dept.
Overseas Production
Planning Group
North & South
America Group
General Manager of
Production Planning
Europe Group
General Manager of
Production Innovation
China Group
Managed by Headquarters
11
Optimum allocation of management resources
Allocation of management resources to match the smile curve
Value chain
Material/
Material/ Equipment/
Equipment/ IPR,
IPR, Know-how/
Know-how/
Element
Element technology
technology
Product
Product planning/
planning/ Design/
Design/
Procurement/Production/
Procurement/Production/ Distribution
Distribution
Sales/
Sales/ Service/
Service/ Solution
Solution
Product
Product innovation
innovation
Process
Process innovation
innovation
Value
Value innovation
innovation
Allocation of
management resources
Current
Management
resources
Smile curve
Allocation of management
resources to match
the smile curve
Future
Management
resources
Investment
Investment
in
in R&D
R&D
Expand
Expand the
the investment
investment in
in
the
the initial
initial phase
phase
Allocation of
management resources
Smile curve
Investment
Investment
in
in product
product
marketing
marketing
Expand
Expand the
the investment
investment in
in
the
the later
later phase
phase
12
Sharp’s corporate visions
Contribute
Contribute to
to the
the world
world with
with
environment
environment and
and health
health conscious
conscious business,
business,
focusing
focusing on
on energy-saving
energy-saving and
and
energy-creating
energy-creating products
products
Contribute
Contribute to
to ubiquitous
ubiquitous society
society with
with
one-of-a-kind
one-of-a-kind liquid
liquid crystal
crystal display
display
13
Ⅱ. Action to realize mid-term
2) Sharp’svision
Key Business
(2)
(2) Sharp’s
Sharp’s key
key businesses
businesses
14
Large-size
Large-size LCD,
LCD, LCD
LCD TV
TV
15
Supply / Demand balance of LCDs for TVs
(Millions of m2 )
Initial forecast
25
Demand
20
Supply
15
10
5
0
09/3Q 09/4Q 10/1Q 10/2Q 10/3Q 10/4Q 11/1Q 11/2Q 11/3Q 11/4Q
*09/3Q-10/1Q: Results
10/2Q-: Forecast
(Source: Sharp)
16
Supply / Demand balance of LCDs for TVs
(Millions of m2)
Reviewed forecast
25
Demand
20
Supply
(1)
(2)
15
10
Shortage
Shortage of
of supply
supply for
for large-size
large-size LCDs
LCDs for
for TVs
TVs
5
0
(1)
(1) Demand
Demand in
in the
the emerging
emerging market
market has
has increased
increased
more
more than
than expected
expected
(2)
(2) LCDs
LCDs for
for TVs
TVs produced
produced in
in G6
G6 and
and G7
G7 lines
lines are
are
being
being shifted
shifted to
to PC
PC application
application
09/3Q 09/4Q 10/1Q 10/2Q 10/3Q 10/4Q 11/1Q 11/2Q 11/3Q 11/4Q
*09/3Q-10/1Q: Results
10/2Q-: Forecast
(Source: Sharp)
17
Expanding demand for TVs
incorporating new technologies
Increase
Increase in
in sales
sales
of
of LCD
LCD TVs
TVs
with
with LED
LED backlight
backlight
Increase
Increase in
in
demand
demand for
for 3D
3D TVs
TVs
Increase
Increase in
in demand
demand for
for
high
-spec LCD
high-spec
LCD panels
panels
18
Display technology innovation: Quattron
UV2A technology
Four primary color technology
- World’s first application of photo-alignment
technology
- Technology to expand
3 primary color signal to 4 colors
- Innovation achieved by LCD panel and
Image processing technology
Conventional technology
(3 primary color: RGB )
Bright panel without
rib and slot
Four primary
color technology
(4 primary color: RGBY)
Deep black with
minimized light leakage
- High aperture ratio (high brightness)
- High contrast (deep black)
- Fast response (optimal for 3D)
- Improved production efficiency (simplified
structure)
- High light transmission efficiency
(high brightness)
- Color reproducibility (improved over 10%
compared to conventional panel)
High-spec
High-spec panel
panel achieving
achieving both
both low
low power
power consumption
consumption
and
and high
high image
image quality
quality
19
Production capacity of large-size LCDs for TV
(Monthly production:
equivalent to G8 panels)
250,000
200,000
150,000
36K
55K
72K
Sakai
Sakai
(G10)
(G10)
100,000
50,000
90K
100K
Jan 2009
Aug 2009
Kameyama
Kameyama
No.2
No.2
(G8)
(G8)
0
Oct 2009
May 2010
July 2010 (plan)
20
AQUOS Quattron series
to be launched in global market
U.S.
Japan
(April 2010)
(Summer 2010)
Marketing promotion
including TV advertisement
TV advertisement
Europe
Emerging markets
(April 2010)
AQUOS
Quattron series
Expand step by step
Launch
Launch in
in global
global market
market within
within 2010
2010
21
AQUOS in the global market (China)
Stores selling AQUOS
March
March 2010:
2010: 5,200
5,200 stores
stores
Expanded
Dec.
Dec. 2010:
2010: 10,000
10,000 stores
stores (plan)
(plan)
AQUOS Line-up
March
March 2010:
2010: 24
24 models
models
Expanded
Oct.
(plan)
Oct. 2010:
2010: over
over 30
30 models
models (plan)
22
AQUOS in the global market (U.S.)
AQUOS Line-up (SKU)
Company A
2009
LE920
series
(Quattron)
LE820
series
(Quattron)
LE810
series
(Quattron)
LE700
series
2010
Display at the retailer
Company B
2009
2010
68-inch
X
X
60-inch
X
X
52-inch
X
X
60-inch
X
52-inch
X
46-inch
X
40-inch
X
60-inch
X
X
52-inch
X
X
46-inch
X
X
40-inch
X
X
52-inch
X
X
46-inch
X
X
40-inch
X
32-inch
X
Number of LED models
4
11
2
Corner display
7
Window display
23
Expanding product line-up of displays
incorporating Quattron panel
Design
Design
Large-size
Large-size TVs
TVs
Three primary colors to four primary colors
Three primary colors to four primary colors
(1) Color
signal conversion technology
Four primary color
technology
Large-size
Large-size
3D
3D TVs
TVs
Video-editing
Video-editing
Museums
Museums
(2)
Optimum design
for pixel area
Digital
Digital archive
archive
contents
contents
(3)
Color design
using primary color
Medical
Medical
sector
sector
24
Medium
Medium // small-size
small-size LCD,
LCD,
Mobile
Mobile phone
phone // Smartphone
Smartphone
25
Market trend of medium / small-size LCD
New
New markets
markets
including
including smartphone
smartphone
and
and e-book
e-book
Demand
Demand for
for portable
portable
game
game handset
handset
hit
hit bottom
bottom in
in 2009
2009
Increasing
Increasing demand
demand for
for
high
-screen // 3D
high picture
picture quality
quality // touch
touch-screen
3D LCD
LCD
26
New application for medium / small-size LCD
Smartphone
In 2013, smartphones will take
approx. 20% of total mobile phone market
Increasing demand for high-spec LCDs
Utilize
Utilize CG
CG Silicon
Silicon LCD
LCD
27
Sharp’s smartphone business
Collaboration with Microsoft
Launch of KIN smartphone
in the U.S. and Europe
Smartphone designed for smooth interaction for
social networking using cloud computing
Smartphone
Smartphone incorporating
incorporating
Sharp’s
Sharp’s unique
unique technologies
technologies
to
to be
be launched
launched in
in the
the global
global market
market
28
Mobile phone business
Mobile phone business in China
Expanding
Expanding the
the number
number of
of stores
stores and
and sales
sales routes
routes
Number of stores
Sales routes
June
June 2008:
2008: approx.
approx. 300
300 stores
stores
Exclusive
Exclusive stores
stores
September
September 2009:
2009: approx.
approx. 3,500
3,500 stores
stores
Exclusive
Exclusive stores
stores // Volume
Volume retailers
retailers
In
In 2010:
2010: approx.
approx. 10,000
10,000 stores
stores (plan)
(plan)
Exclusive
Exclusive stores
stores // Volume
Volume retailers
retailers //
Mobile
(plan)
Mobile operator
operator stores
stores (plan)
Shanghai
Expanding
Expanding product
product line-up
line-up
3 models in 2008
June 2008
SH9010C
Sept 2008
SH8010C
Nov 2008
SH9020C
Plan
Plan to
to expand
expand the
the line-up
line-up
to
to aa total
total of
of 35
35 models
models
within
within 2010
2010
29
Development of new mobile devices
High-definition 3D camera module
for mobile devices
3D touch-screen LCD - switchable
between 2D and 3D mode
3D LCD TV
Smartphone
Mobile phone
3D
3Dphotos
photos
3D
videos
3D videos
3D
3Dbroadcasting
broadcasting
3D
3Dgame
game
3D
blu-ray
3D blu-ray
Digital camera
3D contents
30
Health
and
and
HealthHealth
and environment
environment
Health
and environment,
environment,
Solar
Solar Cells
Cells Solar
Solar cell
cell
31
Sales and profits of
health and environmental equipment
(Billions of yen)
Net sales
(Billions of yen)
Operating income
18
300
7.0%
Operating income
Profit rate
16
6.0%
250
14
5.0%
12
200
10
4.0%
8
3.0%
150
6
100
2.0%
4
50
1.0%
2
0.0%
0
0
FY06
FY07
FY08
FY09
FY10
FY2006-2009: Results
FY2010: Forecast
FY06
FY07
FY08
FY09
FY10
FY2006-2009: Results
FY2010: Forecast
32
Expanding Plasmacluster Ion products
Cumulative sales of Plasmacluster Ion (PCI) products
(Millions of units)
30
PCI introduced in
railcars
Achieved highdensity Ions
25
Adopted in
housing complex
Increased collaboration with
other industrial sectors
triggered by the car application
20
Record
20 million units
(end of 2008)
15
10
First
PCI product
Airpurifier
Application
in other
products
First application to
other industrial
sectors
Record 30 million units
Record
10 million units
(Nov.2005)
5
0
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY2000-2009: Results
FY08
FY09
FY2010: Forecast
FY10
33
LED lighting business
Street light / Exterior light
Street light
Street light equipped
with solar panel
Lighting for commercial
buildings, offices and factories
Square type
Home-use
Down light
LED lamps
Target to expand LED lighting business
Global
Global market
market
- Meet replacement as demand for
incandescent bulb regulated by
government
Japanese
Japanese market
market
- Expand the line-up
- Strengthen cost competitiveness
by reviewing the components
- Expand B to B business
34
Expanding PV market
PV demand by location
(GW)
18
16.9
Others
16
13.2
14
12
10.5
The
Americas
10
7.7
8
6
Europe
5.5
4
2
Japan
0
FY08
FY09
FY10
FY11
FY12
FY 2008-2009: Results
FY2010-2012: Forecasts
(Source: Sharp)
35
PV market trend by application
2009
Approx. 18%
(Proportion ratio in MW)
IPP
Flat-space
Installation
Industrial-use
2012
Approx. 33%
Residential-use
(Proportion ratio in MW)
IPP
Flat-space
Installation
Residential-use
Industrial-use
(Source: Sharp)
Significant
Significant growth
growth in
in global
global market
market demand
demand for
for
flat-space
flat-space installation
installation including
including mega-solar
mega-solar power
power generation
generation
36
Expanding PV market
With rising demand for mega-solar power generation
plants, thin-film solar cells are expected to take approx.
30% of world’s entire PV demand in 2012
(GW)
18
Approx. 3.7 times
(comparison to FY2009)
16
Thinfilm
14
12
10
8
Thin-film
6
Crystalline
4
Crystalline
2
0
Japan
The
Others Americas Europe
FY2009
World
Total
Japan
The
Others Americas Europe
FY2012
World
Total
(Source: Sharp)
37
To be competitive in solar cell business
Mega-solar power generation plants to be built around the world
Utilizes solar power generation as an energy infrastructure
Started the operation of solar cell plant at GREEN FRONT SAKAI in March 2010
Thin-film solar cells to be shipped from Sakai to customers around the world
Requirements for PV manufacturer
Technology
Technology
Cost
Cost competitiveness
competitiveness
(Grid
(Grid parity)
parity)
Long
Long reliability
reliability
38
Sales of Sharp solar cells in fiscal year 2010
Sales of crystalline type (Sharp)
Sales of thin-film type (Sharp)
(MW)
(MW)
1000
300
Approx. 8.4 times
(comparison to FY08)
900
250
800
700
200
600
500
150
400
100
300
200
50
100
0
0
FY08
FY09
FY10
FY08
FY09
FY10
FY 2008-2009: Results
FY 2008-2009: Results
FY2010: Forecast
FY2010: Forecast
39
Forward-Looking Statements
This presentation material contains certain statements describing the future plans, strategies
and performance of Sharp Corporation and its consolidated subsidiaries (hereinafter “Sharp”).
These statements are not based on historical or present fact, but rather assumptions and
estimates based on information currently available. These future plans, strategies and
performance are subject to known and unknown risks, uncertainties and other factors. Sharp’s
actual performance, business activities and financial position may differ materially from the
assumptions and estimates provided on account of such risks, uncertainties and other factors.
Sharp is under no obligation to update these forward-looking statements in light of new
information, future events or any other factors. The risks, uncertainties and other factors that
could affect actual results include, but are not limited to:
(1) The economic situation in which Sharp operates
(2) Sudden, rapid fluctuations in demand for Sharp’s products and services, as well as intense
price competition
(3) Changes in exchange rates (particularly between the yen and the U.S. dollar, the euro and
other currencies)
(4) Sharp’s ability to respond to rapid technological changes and changing consumer
preferences with timely and cost-effective introductions of new products and services
(5) Regulations such as trade restrictions in other countries
(6) Litigation and other legal proceedings against Sharp
Copyright © 2010 SHARP CORPORATION, All Rights Reserved.
40