Sharp announced the Medium-Term Management Plan on May 12(Mon).
Okitsu, President and CEO, talked about the plan. Please watch this video.

[Full transcript of the video]

Q. It’s been about a year since you have been appointed as president. How do you self-evaluate your progress and achievements so far?

For fiscal 2024, to achieve profitability was an absolute must target for us all, and I am very pleased that we have managed to meet this target as planned for. In proceeding our Asset-Light strategy, the termination of SDP, structural reform of small to medium-sized LCDs, and the transfer of SFL and SSTC to Hon Hai has
also been completed smoothly and ended in good results.

After halting SDP production, there were various challenges, but thanks to everyone at SDP and Headquarters who quickly addressed various issues, we were able to complete the transfer to SoftBank,
KDDI, and Sekisui Chemical successfully. Thank you all for your hard work.

There was another significant factor in achieving profitability in 2024. Previously, the forecasting accuracy had been very poor, where significant drops were seen by the end of the month, or in each quarter, creating major discrepancies. However, in fiscal year 2024, the difference between the forecast at the beginning of the month and the results at the end of the month has significantly decreased.

This I believe was due to everyone responding very quickly to predictions of market conditions and various changes, and successfully implementing backup measures and actions. I hope this will be continued to this year as well.

Ｑ.What are the points of the recently announced Medium-Term Management Plan?

First, we have completed the structural reform phase in fiscal year 2024. Since this went well, I believe we have successfully positioned ourselves to launch the Medium-Term Management Plan for 2025 to 2027.
What we need to focus on in these three years is to create a solid foundation for growth, so that we can further grow beyond 2028.

In this context, we have made significant organizational changes. As you know, as of April 1st, we consolidated three business groups within the brand business into two. The main objective of this significant change is for each of the business groups to further maximize synergies and expand their businesses.

Previously, television and white goods were separate business groups, but there is a very close relationship between household appliances and televisions. By consolidating these under one business group, especially considering the strong connection in development of AIoT, the television business has been incorporated into the Smart Life Business Group.

Meanwhile, regarding the MCB group, the idea was to further utilize their advanced technological prowess
in BtoB products for business expansion in that field. To this end, it has been moved under the Smart Workplace Business Group. The smartphone business is expected to have limited growth in the future, so we aim to leverage the existing communication technologies into new ventures, which is a significant intention moving forward.

As for the device business, in our external messages we have been emphasizing on strengthening the brand business. I am sorry for the concerns of everyone involved in the device business for this, but do not think we will be withdrawing from the device business.

As already announced, for small to medium-sized LCDs, we will make the most of Sharp’s LCD technology
to supply high-value-added products to our customers, and we are aiming to achieve profitability by fiscal 2027.

Ｑ.What do you expect from employees in order to achieve the Medium-Term Management Plan?

We must continue to grow, and one thing is I want you to challenge yourselves to new things and not stick to existing businesses. Working for existing businesses may feel comfortable because you are familiar to it,
but that will not lead to company growth. For existing businesses, we need to focus on how to efficiently expand them with minimal strength and allocate the personnel generated from there to other new venture or market development.

Another point is to prioritize profit in each business, and control inventory to the necessary minimum.
Sharp still faces a challenging financial situation. In that context, we must raise profits, minimize inventory, and invest the earned cash into new growth ventures, so I would appreciate your coopration with this endeavor.

Ｑ. A majority of employees said they understood the intention of the Medium-Term Management Plan well. What actions do you think are necessary to further promote a better understanding by all employees?

Announcements from the Headquarter tend to focus on the outlines, so I understand some details may be unclear. As we have been doing from before, communication throughout each level, from BG heads to BU heads, BU heads to department heads, and department heads to managers will be made, so everyone understands how to translate the direction set by the headquarters into specific actions within their own businesses. I believe that within a month, proper explanations will reach all employees. I already asked the respective heads of each division to start such communication.

Ｑ. Please give a message to the employees.

With Sincerity and Creativity, let’s take on new initiatives in a SHARP way. I am looking forward to your achievements.

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<Related Linkes>
– FY2025-2027 Medium-Term Management Plan
– <<Getting to Know the Boss>>Who is the New President, Mr. Okitsu?