CSR / Environment

Communicating with Shareholders and Investors

Communicating with Shareholders and Investors

Fiscal 2019 Objectives Fiscal 2019 Achievements Self-Evaluation
  • Step up the provision of information through IR events such as business policy briefings
  • Strengthened communication with shareholders and investors in Japan and overseas through the continued engagement of senior executives in holding business policy briefings, attending investor conferences, and holding management briefings for shareholders
★★
Priority Objectives for Fiscal 2020
  • Strengthen communication with shareholders and investors through IR events such as management policy briefings
  • Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent

IR Disclosure Policy

Sharp discloses information to shareholders and investors in a fair and timely manner, in order to increase trust in its IR activities and to ensure a proper assessment of Sharp’s corporate value in capital markets.

Sharp discloses information designated under the laws and regulations of Japan, and it also adequately discloses other information, such as business overview, management policy, and strategy.

Basic Policy on Allocating Profits

Sharp considers distributing profits to shareholders to be one of management’s top priorities. Sharp pays dividends from surplus, comprehensively taking into account its 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. In fiscal 2019, we paid an annual dividend per common share of 18 yen. To boost the quality of equity, we also acquired and cancelled the entire 108,000 shares of Class A stock , which, among other things, posed a risk of dilution and had preferred dividends.

Communicating with Investors

In fiscal 2019, besides one-on-one meetings with institutional investors and analysts, Sharp held business policy briefings and quarterly financial results briefings. Sharp senior executives took part whenever possible in conferences organized by securities companies in Japan and overseas, where they explained and answered questions on financial results, management policy, and business strategy. Sharp will continue to use IR activities to help a wide range of investors better understand Sharp’s management situation and business policy, and our senior executives are poised to be more involved in these activities. Sharp’s IR department also keeps the senior executives updated on the reputation of Sharp and market views on the segments where we operate.

General Shareholders’ Meeting, Management Briefings

Sharp holds ordinary general shareholders’ meetings earlier than many other Japanese companies, sends out early notices of the meetings, and discloses notices of the meetings before they are sent out. It also strives to create an environment that enables shareholders to easily exercise their voting rights. Efforts include participating in an electronic voting platform (for institutional investors), posting English notices about the meetings on its website, and allowing shareholders to exercise voting rights via the Internet.

Also, after the general shareholders’ meetings, Sharp holds management briefings to exchange opinions with shareholders on topics which are not limited to the agenda of the general shareholders’ meetings.

IR Activities Designed to Meet the Diversifying Needs of Investors

In response to diversifying needs, Sharp makes every effort to properly disclose a wide range of information promptly and accurately, and enhance its communication with shareholders and investors in Japan and overseas.

Detailed financial information is disclosed in IR documents that include summaries of financial results and presentation materials.

In addition to updating and expanding information on the IR website, Sharp has made the site compatible with smartphone viewing. Sharp also provides information needed by investors in a timely manner, including trends in major performance data, financial materials, and reports given at briefings. There is also a webpage dedicated to individual investors, where they can easily access relevant information presented in an easy-to-understand format.

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.