Sharp 2013 Annual Report Download - page 67

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Annual Report 2013 65
Financial Section
It was decided at the board of directors meeting held on May 30,
2013, to continue measures to reinforce business foundations
with the reduction of labor costs. Subjects that required labor
union discussion were informed to the labor union on the same
the day, and were accepted by the labor union on June 20, 2013.
(a) Reasons to continue measures to reinforce business
foundations
The Company group is currently in the process of recovering
its business performance. As part of its measures to reduce
labor costs, the reduction in salary of managerial staff and
rank-and-file (union members) employees and the review of
bonuses has been conducted.
While business circumstances surrounding the Company
group are still harsh, the improvement of financial strengths
for “Recovery and Growth” needs to be secured, and there-
fore continuation of measures has been deemed necessary.
Based on this decision, the following measures will be imple-
mented.
(b) Details of the continuation of business reinforcement
measures
(1) Measures against managerial staff
[1] Reduction in salary
A 10% salary cut implemented from October 2012 to
September 2013 will continue with “a 5% cut.”
Implementation period: from October 2013 to March
2014
Note: A 5% reduction of salary was implemented from
April to September 2012.
[2] Review of bonuses
The December 2013 bonuses will be halved compared
to the June 2012 bonuses which were reduced by ap-
proximately 30% compared to the previous year.
(The same measure took place with the December
2012 and the June 2013 bonuses.)
[3] Others
Several allowances and welfare programs for union
member employees are currently applied to managerial
staff as well. Changes in these items that are subject to
(2) Legal Reserve
The Company will reduce the entire amount of legal re-
serve ¥26,115,000,000 as of March 31, 2013, and will
transfer the entire amount of the reduction of legal reserve
to retained earnings carried forward.
(d) Details of Appropriation of Surpluses
Following transfers of the common stock and capital reserve
described above, the Company will reduce other capital
surplus by ¥414,448,530,462 out of other capital surplus
of ¥426,015,533,792, reserve for severance payment of
¥1,756,000,000, and general reserve of ¥76,950,000,000,
and will transfer them to retained earnings carried forward to
cover the deficit.
(1) Item and amount of surpluses to be reduced
Other Capital Surplus: ¥414,448,530,462
Reserve for Severance Payment: ¥1,756,000,000
General Reserve: ¥76,950,000,000
(2) Item and amount of surplus to be increased
Retained Earnings Carried Forward: ¥493,154,530,462
(e) Schedule
May 14, 2013
Resolution of the board of directors meeting
May 27, 2013
Initial date of public notice for creditors to make objections
June 25, 2013
Resolution of the Ordinary General Meeting of
Shareholders
June 27, 2013
Final due date for creditors to make objections
June 28, 2013
Effective date
Continuation of Measures to Reinforce Business Foundations