SHARP
Business Strategy
President
Katsuhiko Machida
February 16, 2005
1
I.I. Environmental
Environmental Preservation
Preservation
2
Sharp’s Target: No Global Warming Burden
Achieve a balance between business growth and environmental
conservation by balancing the volume of emitted greenhouse gas with
the volume of decreased greenhouse gas by 2010
CO2
Million ton
Greenhouse gas
emissions produced
through business
activities
Zero global
warming burden
in year 2010
Greenhouse gas saved by solar
cells and energy-saving
products
2004
2010
3
Business Growth along with Environmental Technologies
Save Energy
LCD TVs
Create Energy
Solar Cells
Environmentally Advanced Company
4
II.
II. Business
Business Strategy
Strategy
1. LCD TVs / Large-size LCDs
5
1. LCD TVs / Large-size LCDs
Diffusion of Terrestrial Digital Broadcasting in Japan
Millions of households
47
40
37.0
(79%)
30
27.0
(57%)
20
10
18.0
(38%)
Number of households receiving
terrestrial digital broadcasting
0
End of 2004
End of 2005
End of 2006
(Source: D-pa)
6
2005 International CES
(2005 international CES)
7
Worldwide LCD TV Demand
Thousands of units
33,900
35,000
30,000
23,000
25,000
20,000
14,300
15,000
10,000
7,980
5,000
0
2004
2005
2006
2007
(Source: JEITA)
8
Worldwide Demand for LCD TVs 30V inches and over
Thousands of units
14,000
40V inches and over
12,000
2,200
10,000
30-39V inches
8,000
1,100
11,600
6,000
400
7,000
4,000
2,000
0
90
3,600
1,300
2004
2005
2006
2007
(JEITA’s forecast for total demand x Sharp’s forecast for unit sales ratio by size)
9
Kameyama No.2 Plant
Start of operation: Oct. 2006　Amount of investment: 150 billion yen
The world’s largest substrate (2,160 x 2,400 mm)
* Eight 40-inch class panels or six 50-inch class panels
from each substrate
Substrate input: 15,000 sheets per month
* To increase to 30,000 sheets per month in 2007
10
Expanding Production Capacity at the Kameyama Plant
Thousands of units/month
(32-inch equivalent panels)
900
810
585
600
225
Kameyama
No.2 Plant
450
Kameyama
No.1 Plant
300
360
360
360
Apr. 2005
Oct. 2006
2007
216
0
Aug. 2004
11
Improve Cost Competitiveness at the Kameyama No.2 Plant
Slash material costs
32型
Co-develop materials with material manufacturers
from the initial designing stage
* Backlight, color filters, polarizers, etc.
Highly efficient plant layout
Halve the length of production line and production
lead-time
(in comparison with the Kameyama No.1 plant)
2. Small- and medium-size LCDs
Reasons for Growing Demand
32型
More handsets with color display and
enhanced features…
Increased demand for high resolution
small- and medium-size LCDs,
such as System LCDs
12
13
System LCD Production Capacity
(2-inch equivalent panels)
Millions of units/month
19.0
20
18
16
14
12
10
8
6
4
12.2
Mie No.3
Plant
6.5
2.5
2
0
Tenri
Plant
Oct. 2002
Jun. 2003
Mar. 2004
Apr. 2005
14
Sharp’s Small- and Medium-Size LCD Competitiveness
32型
Keep LCD technologies and know-hows as
“black-box” to prevent them from being leaked
Utilize various LCD related patents
Cultivate new markets for new applications
3. Photovoltaic Power Systems
Reasons for Growing Interest for
Photovoltaic Power Systems
Energy
Energyissues
issues
Electric power shortage in China
Environmental
Environmentalissues
issues
Increasing CO2 emission
Large-scale blackouts
Skyrocketing crude oil prices
Climate change on a global scale
Growing interest in renewable energy
15
Sharp’s Photovoltaic Power Systems in Japan
Residential Use
Industrial Use
Municipal
Municipal buildings
buildings in
in
Nishi
Nishi Harima
Harima region
region
“Solar
“Solar Town”
Town” in
in Kasukabe
Kasukabe city
city
Water
Water purification
purification plant
plant
in
in Mihara
Mihara city
city　16
Sharp’s Photovoltaic Power Systems Overseas
10.1MW:
10.1MW: Bayern,
Bayern, Germany
Germany
1.7MW:
1.7MW: Bayern,
Bayern, Germany
Germany
Provided by PowerLight
400kW:
400kW: California,
California, U.S.A
U.S.A
Provided by PowerLight
350kW:
350kW: Salzburg,
Salzburg, Austria
Austria
17
18
Sharp World’s Largest Solar Cell Production Capacity
MW/Year
450
400MW
400
350
315MW
300
250
200
248MW
200MW
150
100
50
0
Feb. 2003
Nov. 2003
Jun. 2004
Jan. 2005
19
Change in Price of PV Power Systems for Residential Use in Japan
Yen/kWh
150
Price
Price for
for residential
residential use:
use: 23yen/kWh
23yen/kWh
120
90
60
Dotted line: Sharp’s target
30
52 50 48
23
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 (Fiscal year)
(Source: Sharp based on METI data)
20
Sharp’s Illuminating Solar Panel “Lumiwall”
“See-through”
thin-film solar cells
+
Long-life,
energy-efficient,
high-intensity LEDs
＝
Power
generation
Daylight
transmission
Illumination
function
Three functions combined
in one product
21
Worldwide Photovoltaic Power System Demand
1,600
MW
1,600
1,400
1,130
1,200
1,000
867
800
600
400
200
0
FY2004
FY2005
FY2006
(Source: Sharp)
22
III.
III. Mid-term
Mid-term Target
Target
23
Sharp’s Mid-term Net Sales Target
[ Fiscal 2007 ]
3.3 trillion yen
24
IV.
IV. Capital
Capital Investment
Investment
25
FY2005 Capital Investment
Billions of yen
Total
220.0
For large-size LCDs: 64.0
For Small- and medium-size LCDs: 76.0
For LCDs: 140.0
FY2005(Forecast)
26
Capital Investment
Billions of yen
250
220.0
220.0
220.0
200
150
100
For
LCDs
130.0
140.0
50
0
FY2004
FY2005
FY2006
(Forecast)
(Forecast)
(Forecast)
27
Notes Regarding Future Plans and Estimates:
This report contains statements describing future plans, strategies, and estimated performance.
These descriptions are not based on past facts, but on the management’s assumptions and beliefs in light
of the information currently available. These plans, strategies, and performance estimates are subject to a
certain amount of risk and uncertainty due to such factors as economic changes, supply-demand
fluctuations, increased competition, currency exchange rates, and changes in tax laws. Please understand
that actual business results may vary from our estimates.