Sharp 2013 Annual Report Download - page 9

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Shift to High Added-Value Zones
Representative
applications 
Direction
of actions 
Direction
of actions 
Direction
of actions 
Representative
applications 
Representative
applications •฀LCD฀TVs
฀ (volume฀zone) 
•฀Smartphones฀(high-end) 
•฀Industrial/car฀applications
Expand฀orders฀with฀
our฀high฀resolution฀and฀
high฀technology฀models
Fluctuation risk in profitability
Low
Low High
High
Profitability
Contributes฀to฀differentia-
tion฀of฀customers฀via฀swift฀
response฀at฀early-stage฀
concept฀design
•฀Smartphones
฀ (volume฀zone)
•฀Ultrabook™,
฀ tablet฀terminals
Control฀volatility฀with฀
strategic฀alliances฀with฀
large฀clients 
Annual Report 2013 7
Medium-Term Management Plan for Fiscal 2013-2015: For Recovery and Growth
2Improving the Profitability of our LCD Business
Sharp will step up initiatives in high added-value zones and
increase sales by expanding transactions with major clients.
(1) Stepped-up initiatives in high added-value zones
(2) Increase sales by expanding transactions with major clients
The shift to high added-value zones (see diagram at right) illus-
trates how Sharp intends to improve the profitability of its LCD
business. The vertical axis shows fluctuation risk in profitability
and the horizontal axis shows profitability.
The bottom left quadrant, represented by LCD panels for TVs,
is a low-profitability, highly volatile domain, impacted by falling
prices stemming from commoditization, as well as LCD panel
supply/demand balance issues.
We will work to improve profitability and reduce profit volatil-
ity risk by expanding the ratio of our sales in high added-value
zones, which encompasses LCDs for high-end smartphones, in-
dustrial equipment, and car use, where we have a technological
advantage. This domain offers the best match for our product
lineup and technological prowess, including IGZO, so we will
strive to cultivate new customers and applications in order to
achieve business stability.
In the LCD business, Sharp will target steady sales growth and
reduced fluctuation risk in profitability.
To this end, we aim to increase sales by continuously expand-
ing transactions with existing major clients (red in the bar chart
on the right) and developing new major accounts in fiscal 2013
and onwards through product development and marketing ac-
tivities from customer’s viewpoint.
Going forward, we plan to elevate the ratio of sales to major
clients in total LCD sales to the level of 50% plus, with the aim of
growing this business while ensuring the expansion of sales and
the minimization of fluctuation risk in profitability.
Five Strategic Measures to Realize Recovery and Growth
Sales Growth by Expanding Transactions with
Major Clients (Plan)
0
200
400
600
800
1,000
1,200
(billions of yen)
LCD business sales
(Fiscal years)
12 13 14 15
Current
major
clients  
New
major
clients
Other