Sharp 2015 Annual Report Download - page 15

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Display Device Company
Strengthened
collaboration
Innovation in management Innovation in management
Demand chain management
Develop scheme to obtain and
utilize fresh information of
users and markets
Supply chain management
Control of the production and
operation matched to the market
trend, sell-through, and inventories
Cash flow-driven management
Intensive management for
inventories at an optimal level
BtoBtoB businesses (including in-vehicle equip-
ment and IA) represent a highly stable domain
with large barriers to entry. Leveraging its tech-
nological edge, Sharp will strengthen its sales and
support capabilities with the aim of raising the ra-
tio of BtoBtoB businesses sales in overall sales in
this company from 14% in fiscal 2014 to 25% in
fiscal 2017, and then to 40% by fiscal 2021.
BtoBtoC businesses, represented mainly by
LCDs for smartphones, have an inherent risk of
sudden price declines due to market changes.
Nevertheless, we will work to stabilize orders by
increasing the number of customers. To achieve
this, we will step up marketing capability in Chi-
na’s Huanan County and reinforce our “design-
in” organization.
Restructure business portfolio to minimize sales volatility
We will lower the break-even point to strengthen
our responsiveness to sales fluctuation. In fis-
cal 2014, we reported impairment losses on the
Kameyama Plant and the Mie Plant, resulting in
reduced fixed costs. In addition, we will promote
cost-reform projects covering the entire supply
chain to reduce variable costs.
Lower break-even point in preparation for sales fluctuation risks
The shortening lifecycles of smartphone have led
to concerns about further increases in business
volatility. In response, we will further strengthen
chain management.
We will also increase our ability to accurately
grasp real demand and swiftly control produc-
tion and operations, so we will always be able to
maintain optimal inventory levels even amid sharp
changes in demand.
Strengthen chain management with priority on cash flow
BtoBtoB businesses Sales Ratio
(%)
100
80
60
40
20
2014 2017 2021 (FY)
0
90
2014 2015 2016 2017 (FY)
(%)
75
Strengthen adaptability
to sales fluctuation
Medium-Term Management Plan for Fiscal 2015 through 2017
13
Medium-Term Management Plan
for Fiscal 2015 through 2017
Segment Outline
Financial Section
Investor Information
Directors, Audit & Supervisory Board
Members and Executive Officers
Risk Factors
Corporate Governance
Contents
Corporate Social
Responsibility (CSR)
Message to our Shareholders
Fiscal 2014 Review by
Product Group
Financial Highlights
SHARP Annual Report 2015