Sharp 2012 Annual Report Download - page 6

4 SHARP CORPORATION
In fiscal 2011, ended March 31, 2012, the Japanese
economy showed signs of a partial recovery. Overall,
however, conditions remained challenging, including
the continuing strength of the yen, as well as a progres-
sive decline in prices for digital appliances, especially
for LCD TVs.
Overseas, a strong sense of uncertainty persisted
due to the European debt crisis and the slower growth
in China and emerging countries.
In particular, a steep drop in demand in Japan’s LCD
TV market, a deterioration in the supply/demand bal-
ance for large-size LCD panels, and sluggish demand
for solar cells had a substantial impact on our perfor-
mance, and in fiscal 2011, we were forced to post the
largest-ever loss in our history.
To respond to the rapidly changing business environ-
ment, and with the aims of achieving business growth over
the medium to long term and strengthening its business
foundations, Sharp has instituted a new administration.
Since its establishment, Sharp has contributed to
society by consistently making unique products unlike
any other, thereby engendering new demand. Harness-
ing the creativity that flows through our corporate DNA,
we will be re-activating our spiral strategy of devices and
products, and will accelerate the global market launch of
new one-of-a-kind products that will impress and amaze.
Meanwhile, in terms of production strategy, Sharp
has entered into an agreement with the Hon Hai Group,
the world’s leading electronic manufacturing service
company, to establish a strategic global partnership to
collaborate primarily in the highly competitive area of
digital appliances. Through this partnership, we aim
to create a structure that will enable us to compete
in global markets, and thus enhance our international
competitiveness. We will establish, on a global scale, a
new business model with vertical integration, combin-
ing the strengths of each company: Sharp’s capability
for developing one-of-a-kind devices and products, and
the Hon Hai Group’s production technology and cost
competitiveness.
In September 2012, Sharp will mark its 100th anni-
versary. Several times in the past, we have been faced
with immense difficulties, including the Great Kanto
Earthquake, fiscal and monetary tightening after World
War II, and the appreciation of the yen following the
Plaza Accord.
Nevertheless, each time, we have overcome these
crises by taking up the challenge to the creation of new
products and technologies never before seen in the world.
The severe business environment is expected to con-
tinue in fiscal 2012, but we will push ahead with efforts
to improve our business performance and reinforce our
business foundations by improving our financial position
and making changes in our business model.
In addition, we will work to raise our corporate value
by taking steps to expand our CSR activities group-wide,
including strengthening our corporate governance, help-
ing to preserve the global environment, and enforcing
compliance in business management. We look forward
to your ongoing support and encouragement.
July 2012
Message to Our Shareholders
Faced with an increasingly severe operating environment in the electronics
industry, we will promote further reforms to our business structure under a new
administration and will press forward to reinforce our business foundations.
President
Message to Our Shareholders