Sharp 2009 Annual Report Download - page 11

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In the mobile phone business, in Japan, replacement
cycles have grown longer and demand for mobile termi-
nals has slumped markedly due to market saturation and
changes in selling methods. Challenging market condi-
tions are expected throughout fiscal 2009 as well. Sharp
intends to work to further increase our market share by
well-timed launching of distinctive mobile phones that
leverage our unique technologies. One example is the
development of new models with solar panels, one of our
distinctive devices. Overseas, we will aggressively expand
into emerging markets like China mainly with midrange
and popularly priced mobile phones. In developed markets
such as Europe and the United States, we will expand our
business by developing mainly smart phones.
In the health and environmental equipment business,
we dissolved the Appliance Systems Group and newly
created the Health and Environment Systems Group last
year in a developmental move to conduct structural
reforms and clarify business policies. The same spiral
strategy developed primarily for the audio visual, informa-
tion, and communications segments will be applied to
this business as well. It consists of creating distinctive
products built around Sharp’s unique devices. In this
case, we will work to create new health and environmen-
tal equipment. Specifically, we will promote the evolution
and expansion of a vertically integrated business model
based on core devices, such as the Plasmacluster Ion,
LED lighting and solar related business and work to
increase earnings by expanding new business fields.
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Harsh business conditions are expected to continue in the
first half of fiscal 2009, but we will work to gradually
restore earnings in the second half, with a goal of positive
figures for the full year. This target takes into account the
fact that orders are starting to recover as inventory levels
continued to be adjusted. We also anticipate our recovery
plan to bear fruit.
Sharp has appointed an outside director starting in
June 2009. Participation in management by an outside
expert with diverse perspectives will serve to strengthen
corporate governance and further raise management
transparency, objectivity and soundness.
Looking through history, it seems that more serious
recessions produce greater innovations. Sharp has con-
verted crisis into opportunity many times in the past, and
each time we have improved manufacturing capabilities
and brought about growth. We will treat this challenging
business climate as another opportunity to further raise
corporate value by reforming management from an alto-
gether new standpoint.
Reinforce Corporate GovernancePolicies for Health and
Environmental Equipment Business
Plasmacluster Ion
business
LED lighting
business
Solar related
business
Evolution and expansion
of vertically integrated
business model
July 2006 Establishment of Advisory Board*
SoundnessObjectivityTransparency
June 2008 Introduction of Executive Officer System
June 2009 Appointment of outside director
* Dissolved as part of further development in June 2009 with the appointment of an
outside director.
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