Communication with Shareholders and Investors
Communication with Shareholders and Investors
| Fiscal 2023 Objectives | Fiscal 2023 Achievement | Self-Evaluation | Priority Objectives for Fiscal 2024 |
|---|---|---|---|
|
|
★★ |
|
- Self-evaluation：
- ★★★ Achieved more than targeted /
- ★★ chieved as targeted /
- ★ Achieved to some extent
Basic Policy
By strengthening two-way communication with shareholders and investors, Sharp aims to build a relationship of trust with the stock market and increase its corporate value.
In line with this, Sharp not only discloses information in a fair, timely, and appropriate manner but also proactively creates opportunities for its senior executives to engage in dialogue with shareholders and investors.
Information Disclosure
Not only does Sharp disclose information designated under the laws and regulations of Japan; it also discloses in detail any information that it deems useful to stakeholders, such as business overview, management policies, and strategies. In particular, for financial results, presentation materials, and other items of high interest to investors and shareholders that require rapid reporting, Sharp posts the English versions on its IR website at the same time that the Japanese versions are released.
General Shareholders’ Meetings
Sharp strives to create an environment that enables shareholders to easily exercise their voting rights. Efforts include disclosing notices of the meetings before they are sent out, posting English notices about the meetings and other information on its website, participating in an electronic voting platform (for institutional investors), and allowing shareholders to exercise voting rights via the Internet or their smartphones. Additionally, Sharp makes other efforts, such as providing enhanced explanations of its management policies at the general shareholders’ meeting, to deepen shareholders’ understanding of its management policies and business operations.
At the general shareholders’ meeting, senior executives make use of presentation materials to explain the current situation, management philosophy, and other matters before engaging in frank dialogue with shareholders.
Financial Results Briefings, One-on-One Meetings
In addition to the general shareholders’ meeting, Sharp actively works to create opportunities, such as at financial results briefings and management policy briefings, for its senior executives to communicate with shareholders, investors, and analysts. Sharp also conducts individual and group meetings, which includes participation in conferences hosted by securities firms. And whenever senior executives are unavailable, the IR department meets with shareholders and investors.
Main Items of Interest Gleaned from Dialogue
The IR department compiles the concerns and opinions of investors gleaned from these dialogues and regularly provides feedback to senior executives and relevant departments, striving to incorporate this information into company management and business activities, including the formulation of management policies.
Furthermore, there was a great deal of interest in Sharp’s performance trends and the direction of its display business for fiscal 2023, and the company received many questions about growth strategy for its brand business and about its capital policy.
In recent years, there has been an increase in surveys and meetings with investors on the topic of ESG, which is an important management issue. As this is a relatively new topic, Sharp is working closely with related departments to share information and coordinate responses.
Enhancing the IR Website
Sharp maintains an accessible and easy-to-understand IR website. It is compatible with smartphone viewing and has a page tailored for individual investors. Also, Sharp has given the home page an intuitive and easy-to-access design which, in addition to allowing the latest IR materials to be accessed immediately, offers a robust array of content, such as “Sharp at a Glance,” which provides a compact summary of a variety of information, including financial data. There’s also a page providing graphs of major performance data. Since fiscal 2023, Sharp has had a new section called “Sharp by Numbers” on its website for individual investors in an effort to help them gain a deeper understanding of the company.
Preventing Insider Trading
Sharp has effectuated regulations restricting insider trading, established strict controls on undisclosed material facts (“insider tips”), and instituted restrictions on the buying and selling of stocks and other securities. Sharp has also implemented in-house training related to insider trading. This training includes, among other approaches, an educational campaign on the corporate intranet that targets Sharp Group employees in Japan with the aim of preventing insider trading by Sharp Group directors, audit and supervisory board members, executive officers, or employees.
In addition, given the importance of disclosure, when “material facts specified in the Financial Instruments and Exchange Act” and/or “important company information that should be disclosed in a timely manner as stipulated by securities exchanges” is generated, Sharp does its utmost to promptly disclose and publicize the relevant details. Further, regarding media and analyst coverage, Sharp deals with it while fully honoring the spirit of disclosure and remaining attentive so as not to violate insider-trading regulations.
Basic Policy on Allocating Profits
Sharp considers distributing profits to shareholders to be one of management’s top priorities. It comprehensively takes into account consolidated business performance, financial situation, and future business development, while making active investments in R&D and other areas and strengthening the financial standing from a long-term perspective. Sharp’s basic policy is to ensure stable dividends at a payout ratio of 30%.
