We practice ESG-oriented management, aiming to establish SHARP a powerful corporate brand as quickly as possible.

My name is Robert Wu, and I became CEO in April 2022.

SHARP was founded in September 1912. This year marks our 110th anniversary. Once again, I thank you, our stakeholders, for supporting us over the years.

Since 2019, we have faced an unprecedented crisis in the form of COVID-19. But with advancements in vaccinations, changes in behavior, and IT progress in various fields, a new form of daily life with-COVID-19 is emerging, little by little. At the same time, many issues remain that the international community must come together to solve. These issues include climate change, human rights, and geopolitical developments.

In response, we will endeavor to engage in ESG-oriented management to an even greater degree. We contribute solutions to a wide array of social issues, hoping to enhance social value, raise brand power, and establish SHARP as a powerful corporate brand as quickly as possible.

Specifically, we pursue a vision of Changing the World with 8K+5G and AIoT. Under this vision, we strive to create innovative services and solutions centered our eight priority business areas: (1) Smart Home, (2) Smart Office, (3) Healthcare, (4) Entertainment, (5) Education, (6) Industry, (7) Security, and (8) Mobility. In particular, we intend to accelerate efforts to strengthen healthcare-related businesses further, leveraging digital technologies and to contribute to carbon neutrality.

Further, we practice HITO-based management, endeavoring to foster a young, vibrant corporate culture and to accelerate management reform from a global perspective. In this way, we believe SHARP will grow to become a company needed not only in Japan, but across the world as a truly global company.

At the same time, we recognize that these various social issues represent major risks to the continued development of our business in the future. We will continue to step up our efforts toward more robust sustainability.

As a case in point, we established the ESG Promotion Division in July this year. The ESG Promotion Division will play a central role in group-wide sustainability and Green Transformation (GX) strategies. We also formulated new medium-term environmental targets for the years 2030 and 2035 to achieve our long-term environmental vision, SHARP Eco Vision 2050. Further, we announced our support of the TCFD^*1 recommendations. We intend to expand information disclosure related to climate change in accordance with the TCFD framework.

As a participant in the United Nations Global Compact, which we signed in 2009, we continue to support the Ten Principles related to human rights, labor, the environment, and anti-corruption. We share the vision and mission of the RBA^*2, which we joined in 2021, throughout the group to accelerate our efforts to solve global social issues effectively.

Our Business Philosophy states that our future prosperity is directly linked to the prosperity of our customers, dealers, shareholders...indeed the entire SHARP family. We will continue to work together with our stakeholders to solve social issues through our business activities and to reduce social and environmental burdens. We strive to help achieve the SDGs and create a better, sustainable world in which no person is left behind.

• *1 A climate-related financial disclosure task force formed by the Financial Stability Board (international body that works toward financial systems stability). In 2017, the FSB released a recommendation to encourage companies and other entities to disclose information regarding risks and opportunities related to climate change.
• *2 A non-profit organization that promotes social responsibility in global supply chains. The organization formulated and published the RBA Code of Conduct.

October 2022