Sharp

Sharp Electronics is a Japanese manufacturer of electronics and household appliances. The company offers a range of enterprise products, including a range of multifunctional documentation processing devices, visualization solutions, which include digital signage and interactive whiteboards, and ECR/EPoS systems for various applications. In addition, the company offers an assortment of consumer electronics and premium household appliances - televisions, refrigerators, climatic complexes, microwave ovens, etc.

Structure

As of April 2018, Sharp's business structure includes the following main areas:

• Advance Display Systems;
• Smart Business Solutions;
• IoT Electronics Devices (chips and modules for telephone cameras);
• Smart Homes (smartphones and household appliances).

Performance indicators

2022: Losses of $1.9 billion

At the end of the fiscal year ended March 31, 2023, Japanese electronics manufacturer Sharp reported its first consolidated net loss in six years. Losses amounted to 260.84 billion yen (approximately $1.94 billion at the exchange rate as of May 12, 2023). By comparison, the company ended the previous fiscal year with a net profit of 73.99 billion yen. Such figures are reflected in the report published on May 11, 2023.

Sharp's revenue reached 2.55 trillion yen (approximately $18.92 billion). This is 2.1% more than the result for the previous financial year, when 2.5 trillion yen was received. Despite slightly higher sales, Sharp said it suffered an additional 220 billion yen ($1.63 billion) in losses as it wrote off the cost of buildings and equipment at its LCD and OLED screen facilities in Japan, as well as the cost of software, hardware and facilities in China, Europe, Japan and the United States. Due to significant losses, the supplier of sensors and displays for smartphones Apple iPhone decided to abandon the payment of dividends.

Sharp ended the year with a loss of $1.9 billion

Sales of smart products in the fiscal year closed on March 31, 2023 amounted to 468.74 billion yen ($3.48 billion), which is 5.1% more than in the previous fiscal year. The 8K ecosystem brought in 591.83 billion yen (approximately $4.4 billion) - plus 4.3% on an annualized basis. In the segment of information and communication technologies, revenue was recorded in the amount of 325.87 billion yen ($2.42 billion), which corresponds to an increase of 0.6% compared to the previous financial year.

The report also states that the business of supplying various devices and components (including displays for consumer products) brought in 1.24 trillion yen (about $9.17 billion), which is 1.7% less on an annualized basis.^[1]

2019: 5.4% drop in sales to 2.27 trillion yen

Fiscal year 2019, which ended for Sharp at the end of March 2020 calendar, was marked for the company to receive revenue in the amount of 2.27 trillion yen ($21.1 billion). This is 5.4% less than sales a year ago.

At the end of fiscal 2019, the Smart Life division (smartphones, household appliances and consumer electronics) registered a 4.7 percent decline in revenue, to 856.2 billion yen.

Sharp's annual financial performance

Annual turnover in the direction of 8K Ecosystem decreased by 11.9% and amounted to 1.16 trillion yen. In the ICT business, revenue reached 357.5 billion yen, an increase of 27.3% compared to the 2018 fiscal year.

Sharp's net profit in fiscal 2019 decreased by 71.8% compared to the previous year and turned out to be 20.9 billion yen ($194.7 million).

Earnings at Smart Life rose 26.3%, reaching 39.7 billion yen. Profits of 8K Ecosystem and ICT division amounted to 14.9 and 20.2 billion yen, respectively (a decrease of 68.5% and 3%).

Sharp said that the outbreak of the coronavirus COVID-19 undermined the work of the company's suppliers, disrupted production (factories in China did not work for several weeks due to the imposed quarantine) and the supply of components, and also led to a reduction in sales due to the massive transition of employees to work from home.

From the annual reporting, it also follows that Sharp's business in the field of smartphones and automotive technologies suffered due to disruption of enterprises and logistics channels.

Sharp Executive Vice President Katsuaki Nomura said that by the end of the fiscal year, sales of displays for tablet computers and medical equipment began to recover due to the fact that people began to work more at home, and there was a surge in medical equipment amid the COVID-19 coronavirus pandemic.^[2]

Business in Europe

The European Sharp Europe offers a range of end-to-end business technology services beyond MFP and displays into the realm. In IT services addition to acquiring two IT service enterprises - Complete IT Great Britain in and IT Point in - Switzerland the company recently announced its intention to develop its IT services business with further acquisitions to be announced in 2023.

Sharp Europe is headquartered in London and serves customers in the private and public sectors, education and government, offering a wide range of products ranging from printers, advanced flat screens and collaboration platforms to IT services (data for September, 2022).

2019: Release of the first Windows collaboration display

Sharp Europe has developed the world's first commercially available monitor 8K, and in 2019 released the world's first certified display for collaboration in. Windows

Business in Russia

Sharp Electronics Rush LLC is a Russian legal entity that officially represents Sharp Electronics products on the Russian market.

History

2024: Appointment of Masahiro Okitsu as CEO

On June 26, 2024, Sharp Corporation announced the appointment of a new president and CEO. It will be Masahiro Okitsu, who previously served as executive vice president of the company. Read more here.

2022: Delivery of more than 50 million photovoltaic panels

Over the past 60 years, Sharp has supplied more than 50 million photovoltaic panels and produced 16.5 GW of electricity, avoiding emissions of 179 Mt CO2 equivalent.

2020

Completion of joint venture deal with NEC

On November 2, 2020, Sharp Corporation (Sharp) and NEC Corporation (NEC) announced the completion of the previously announced joint venture transaction by acquiring a 66% stake in NEC Display Solutions Ltd by Sharp. (NDS), a subsidiary of NEC. This became known on November 2, 2020. Read more here.

Shipment of 500 million Aquos LCD TVs

Sharp shipped 500 million Aquos LCD TVs by the end of September 2020.

Toshiba sold all PC assets and left the laptop market

On August 7, 2020, Toshiba announced the sale of its remaining 19.9 percent stake in the computer business. The assets were acquired by the Japanese company Sharp, becoming the owner of 100% of the Dynabook division (formerly Toshiba Client Solutions). Read more here.

Sharp-NEC Joint Venture Agreement with NEC

On March 25, 2020 TAdviser , it became known that corporations NEC and Sharp agreed to create a joint venture that will combine (NEC Display Solutions NDS) - a division of NEC, and Sharp. More. here

Plasmacluster Air Purification Technology Introduction

Sharp unveiled its proprietary Plasmacluster air purification technology in 2020.

2018

Dismissal of 3 thousand people due to changes in the production of components for iPhone

On December 4, 2018, it became known about the massive job cuts at Sharp due to changes in the production of components for the iPhone.

According to Reuters, citing one of the Japanese trade unions, Sharp fired almost 3,000 subcontracted foreign workers at a factory located in Kameyama, Japan. This is due to the transfer of production of some sensors for smartphonesApple to a facility owned by Foxconn (owner of a controlling stake in Sharp) and located in China.

Change in sensor factory for iPhone facial recognition system forces Sharp to lay off 3,000 foreign workers

Knowledgeable sources clarified to the news agency that Foxconn was transferring the production of sensors for the face recognition system, which was first used in the iPhone X phone, released in 2017. The reasons for this decision are not named.

In addition, it is not clear why Foxconn is transferring production to China, given the country's trade conflict with the United States. Other manufacturers of electronics and components, on the contrary, are increasing capacity outside the Celestial Empire so as not to increase the cost of products against the background of alleged new duties on the import of goods from the PRC into the United States.

Perhaps Foxconn's actions are related to the ongoing restructuring, in which the company plans to reduce 20 billion yuan ($2.9 billion) in 2019 after "very difficult and competitive in 2018."^[3]

Information about the decrease in Sharp's headcount brought down the company's quotes. On December 4, 2018, the shares fell 5.7%, and the next day - another 4%.

According to Nikkei, after the mass personnel cleansing at the Kameyama factory, by the summer of 2019 there will be only 500-600 foreign workers against 4 thousand by the end of 2017. At the same time, the plant continued to produce components for smartphone cameras, as well as LCD displays.

Buying a computer business for 4 billion yen

In early June 2018 Japanese , consumer electronic engineers and display maker Sharp announced the purchase of Toshiba the computer business, thereby returning to a market that had left eight years earlier. More. here

2017: Earnings of 70.2 billion yen; proceeds of 2.4 trillion won

Sharp's financial health is recovering. On April 26, 2018, it became known that at the end of 2017, which ended on March 31, 2018, the Japanese corporation made a profit of 70.2 billion yen ($642 million). Prior to that, the company recorded negative indicators for three years, and in 2016 Sharp's net loss amounted to 24.8 billion yen.

Sharp's report also reported strong revenue growth. Annual sales increased by 18% to 2.4 trillion yen ($22.1 billion), with upward dynamics observed in all areas of the company's activities.^[4]

Financial performance of Sharp and its divisions

Advance Display Systems, the largest segment in Sharp's business, in which the company produces display products, provided the Japanese vendor with the lion's share of revenue - 1.086 trillion yen ($9.9 billion). Compared to annual sales increased by 29%. Demand growth was seen for products such as mid-sized LCD panels for tablets and cars, as well as displays for. smartphones

Sharp also almost doubled sales of LCD TVs, selling 10 million devices worldwide, Nikkei reports.^[5]

Smartphones under the brand name Aquos, wireless vacuum cleaners Reactive Air and washing machines, which the company ranks in the Smart Homes segment, brought Sharp 607.9 billion yen in revenue, which is 10.4% more than in 2016.

In the Smart Business Solutions segment, which includes Sharp's multifunctional printers and digital panels, the company earned 331.1 billion yen, improving the previous year by 4.2%.

In addition, Sharp achieved almost 19 percent growth in the IoT Electronics Devices segment, which produces camera modules for smartphones, sensors and semiconductor products. Revenue in this direction amounted to 491.5 billion yen.

Given the improved earnings, financial condition and prospects for further growth, Sharp decided to pay dividends for the first time in six years.

2016

Chinese authorities approve Foxconn's purchase of Sharp's controlling stake

The Chinese authorities approved the purchase of the Taiwanese Foxconn Technology Group 66% of the Japanese corporation Sharp for 388.8 billion yen ($3.8 billion), writes The Wall Street Journal^[6], citing the company.

"Foxconn Technology Group reported that Chinese antitrust authorities approved a deal to buy a controlling stake in Japanese electronics manufacturer Sharp Corp., and the company plans to close the deal as soon as possible," the newspaper writes

Foxconn cuts staff and monetizes Sharp patents

Foxconn founder and chairman Terry Gow announced in the summer of 2016 the dismissal of 7,000 employees and the closure of all areas that generate losses. This will affect both Japanese and international units. The new management team will begin operations before the end of July. Foxconn is more interested in monetizing Sharp's patent portfolio.

Sharp is known for its inventions and is an important participant in the evolutionary progress of the consumer and mobile electronics industries. Surprisingly, the company's first patented gadget was the iron belt buckle invented by Tokuji Hayakawa, founder of Sharp, in 1912. In the history of the mobile industry, Sharp will forever remain the company that was the first in the world to develop a mobile phone with a built-in camera. Even in financial agony, the corporation managed to present in 2013 the world's first 8k TV. Now Sharp expects the fate of Nokia, Motorola and other legends who have not coped with the challenges of the new era.

Foxconn takes over Sharp

The board of directors of the Japanese corporation Sharp in February 2016 agreed to sell its entire business to the Taiwanese company Hon Hai Precision Industry, better known in the West as Foxconn^[7]

According to Bloomberg, under the terms of the deal, Hon Hai will own 65.9% of Sharp's shares.

Information about Hon Hai's interest in Sharp's business appeared at the end of January 2016. Then it was reported that the Taiwanese manufacturer offered 625 billion yen ($5.3 billion) for it.

A condition of the deal was Hon Hai's acceptance of an obligation to pay off Sharp's debts. As a result, the parties agreed on the amount of 700 billion yen ($6.2 billion). Sharp's debt currently ranges from 500 billion to 600 billion yen (about $4.2-5 billion), with the bulk of this amount - 510 billion yen - the corporation must repay by the end of the current financial year, which ends in March 2016.

Hon Hai is known as a manufacturer, electronic engineers Apple including iPhone and. iPad Orders of the "apple" company form over 40% of its total revenue. Sharp is interesting for Hon Hai, primarily the display business. The company makes displays for consumer electronics and is one of the suppliers of displays for iPhones. The display is the most expensive part in the device, which forms up to 20% of the cost of a mobile phone. In addition to displays, Sharp makes many types of products, from TVs to solar panels.

2012

Sharp goes to the bottom

In September 2012, it became known that Sharp laid down its headquarters and some of the production facilities (according to CNET, we are talking about 12 plants, including the one that produces the screen for iPhone5) in order to get a loan. The reason that bankers needed a deposit was the fall of the company's credit rating to the level of "junk." In this assessment, both the largest rating agencies, Moody's and Standard & Poor's, stand in solidarity. The rating change took place on August 31, 2012.

Sharp is trying to sell part of its shares to Foxconn, according to Western media reports, it is about 9.9%. Sharp shares fell 68.97% from the beginning to September 2012 to the level of 37 years ago. And if you look since 1999, the fall was 92% at all. On September 10, 2012, the company's share price decreased by another 3.26% during trading on the Singapore Stock Exchange. For the first time in six decades, the company is laying off employees.

These facts forced a potential buyer of Sharp shares in Foxconn to cancel the agreement to acquire a 9.9% stake for $854 million. The real purchase price will apparently be much lower. Interestingly, Foxconn does not mind buying a stake in Sharp in order to ensure access and control over the part of the company that produces components (in particular, screens) for iPads smartphones iPhone and companies. Apple The collector of these gadgets is. Foxconn

All these problems hit Sharp despite the fact that it is a major manufacturer of LCD panels (this company's share in the market for small-format LCD panels was 13.5% in 2011, according to DisplaySearch). Sharp is also the supplier of the world's No. 1 IT company, Apple.

The reason for the "hard times" is simple - falling prices for LCD TVs. DisplaySearch estimated that the average price of an LCD TV is expected to decline by 4% in 2012. The drop in the average price in 2011 was 6%, and in 2010 - 10%. The same research company reports that a 40-inch LCD panel cost about $2,800 in 2003, and only $250 in the first quarter of 2012. This problem threatens the well-being of other Japanese companies - in particular, Sony and Panasonic. However, companies such as Samsung and LG managed to "catch the wave" and switched to the production of smartphones, laptops and tablets.

Sharp's problems especially worsened when the company spent $12.6 billion in 2004 and 2009 on the construction of two plants. In addition to falling prices, Sharp's financial position is also affected by falling sales. WBP Online reports that in April, May and June 2012, Sharp's total sales decreased by 28.4% compared to last year. Audio and video electronics sales declined 54.9% during the period and solar panel sales declined 18.2%. The latter was due to declining demand in Europe and increasing competition in this segment in Japan. Some market analysts quoted by Bloomberg fear that Sharp will not last even 12 months. Experts note that Sharp urgently needs to accelerate the development of new products, reduce production costs, and optimize supply chains.

Sharp's losses in 2012 are expected to reach $1.27 billion^[8].

Sharp may come under Intel's control

Sharp is in talks with Intel to invest about 30 billion Japanese yen ($383 million) in the LCD panel maker's stock. The companies plan to come to an agreement as early as October 2012, according to the Japanese newspaper Mainichi, citing sources close to the negotiations.

According to the publication, Intel praised the potential for producing medium and small LCD panels. The microchip maker is interested in Sharp in terms of creating smartphones and other devices based on Intel chips.

If the negotiations end successfully, then Intel will become Sharp's largest shareholder. At the same time, the exact volume of the proposed package for sale is not reported.

However, Sharp does not give up hope of concluding an agreement to sell part of the shares to Taiwanese manufacturer Hon Hai, which refused the deal after a sharp drop in Sharp's share price in March 2012.

Sharp also has a business plan to get out of this situation, according to which the company envisages stabilizing its financial situation by cutting about 5 thousand employees and selling assembly plants in Mexico and China to the same Hon Hai.

According to Sharp's plans, if all measures are successful, then by the end of 2012 the company will have an operating profit, and in 2013 - a net profit.

Kyodo News reported in November 2012 that investment negotiations between Intel and Sharp were in the final stages. Intel is going to invest in Sharp from 30 billion to 40 billion yen (from 376 million to 500 million dollars). In addition, according to the agency, Sharp is in talks with the well-known manufacturer of chips for mobile devices Qualcomm. Officially, neither Intel nor Sharp comment on these messages.

$2.7 billion investment from Mizuho Financial Group

Financial corporation Mizuho Financial Group, one of Sharp's main lenders, agreed to invest an additional 210 billion yen in the company, which amounts to about $2.7 billion, Reuters reported on September 26, 2012.

This amount is a large part of what is needed to save Sharp. Mizuho and Tokyo-Mitsubishi bank UFJ are allocating cash on the condition of a radical change in the company's operations, including the sale of some assembly plants and the closure of the solar panel business in the United States.

In total, in the short term, Sharp must pay about 360 billion yen on loans, 150 billion yen of which has already been contributed by the company.

In addition to Mizuho and Tokyo-Mitsubishi bank UFJ, Sharp's creditors are two other banks and a number of companies, according to news agency sources.

Sharp does not give up hope of reaching an operating profit of 121 billion yen in the coming financial year, compared with an operating loss of 115 billion yen for the same period last financial year (ended March 31, 2012).

The company also denied information about negotiations with Intel, in which it was assumed that the microelectronics manufacturer would become the company's largest shareholder. However, the same sources claim that enterprises continue to dialogue about possible cooperation in the field of ultra-thin laptops.

Even earlier, Sharp had been in talks with Taiwan-based Hon Hai to sell a 9.9% stake, which would have made Hon Hai the largest shareholder. But the talks stalled after a Taiwanese company announced its desire to take an active part in operational management in exchange for investment.

Qualcomm set to invest up to $120 million in Sharp

Sharp po­lu­chit in­ve­sti­tsy $120 million from Qualcomm ame­ri­kan­skoy. Per­vaya po­lo­vi­na this amount po­stu­pit Sharp on de­kab­rya 27, 2012. The companies will begin work on technologies of screens on the basis of microelectromechanical systems (MEMS). Such screens consume in ten, and even energy, than liquid crystal is a hundred times less. Their raz­ra­bot­koy za­ni­ma­et­sya Pixtronix is Qualcomm's do­cher­nyaya kom­pa­niya. On quality of the image and consumption of energy the MEMS screens are between liquid crystal screens and electronic paper, claim in the company.

The decision on an investment of the second half of means will be made in March, 2013 after the analysis of the technical and economic bases of joint projects.

Except MEMS, the companies are going to work also on created in Sharp of the production technology of screens on the basis of iridium, gallium and oxide of zinc (IGZO). She also ot­li­cha­et­sya nevy­so­kim po­treb­le­ni­em ener­gii. Sharp has already is­pol­zu­et it neko­to­rykh mo­de­lyakh smart­fo­nov and tablets.

The agreement with Qualcomm does not exclude a possibility of the conclusion of investment agreements with other companies, emphasize in Sharp. Pro­dol­zha­yut­sya pe­re­go­vo­ry with ki­tay­skoy Hon Hai, sdel­ka with ko­to­roy was ot­lo­zhe­na due to a pa­de­niya in Sharp shares.

2001: Introduction of Aquos LCD TVs

In 2001, Sharp introduced Aquos LCD TVs.

2000: Release of a mobile phone equipped with a camera

In 2000, Sharp released the industry's first camera-equipped mobile phone.

1972: Presentation of the first copier

The company introduced its first copier in 1972.

1964: Development of a fully transistor calculator

In 1964, Sharp developed the world's first all-transistor calculator.

1912: Founding of the company

September 15, 1912 - the date of foundation of Sharp.

In 1912, the founder of the company, Tokuji Hayakawa, opened a workshop for the manufacture of metal products in Tokyo. He later invented the Ever Ready Sharp Pencil, a screw mechanical pencil that became the foundation of the corporate brand.

Notes