Business Strategy Meeting (PDF:1.9MB)

SHARP
Business Strategy
2004
President
Katsuhiko Machida
February 18, 2004
Integrated LCD TV Plant Goes On Line
Jan. 2004
Kameyama Plant
TV technology
1953: Japan’s first TV
2
LCD technology
1973: World’s first calculator with an LCD display
3
I.I. Business
Business Strategy
Strategy
4
Product
Product Business
Business
1. LCD TVs
5
(Industry) Worldwide LCD TV Demand
Thousands of units
7,500
8,000
overseas
6,000
4,500
4,000
3,000
2,000
0
1,340
630
710
FY2002
domestic
1,500
3,000
1,500
FY2003 (Forecast) FY2004 (Forecast)
7
LCD TV Sales as % of Sharp’s Total Overseas TV Sales
100%
75%
50%
CRT TVs
25%
LCD TVs
0%
1st Half/2002
2nd Half/2002
1st Half/2003
2nd Half/2003
(Production value)
7
LCD TV Sales as % of Sharp’s Total Domestic TV Sales
100%
75%
CRT TVs
50%
25%
LCD TVs
0%
1st Half/2002
2nd Half/2002
1st Half/2003
2nd Half/2003
(Production value)
8
Sharp’s LCD TV Unit Sales
Thousands of units
4,000
3,000
3,000
2,000
1,000
1,500
890
0
FY2002
FY2003 (Forecast)
FY2004 (Target)
9
Wide-screen LCD TV over 22 inches as % of Sharp’s Total LCD TV Sales
Thousands of units
3,000
2,000
45%
1,000
25%
9%
0
FY2002
FY2003 (Forecast)
FY2004 (Target)
10
Sharp’s LCD TV Cost Competitiveness
6th generation mother glass (1,500 x 1,800mm)
Simplify manufacturing process at the unified production site
(from LCD panels to TV sets)
Reduce panel transportation costs at the unified production site
Develop image processing LSI for LCD TVs
11
Sharp’s Overseas LCD TV Production
Spain
(Barcelona)
China
from Jun. 2002
(Nanjing)
from Feb. 2001
Mexico
(Rosarito)
from May. 2003
12
2. Mobile Phones
13
(Industry) Worldwide Mobile Phone Demand
Millions of units
600
500
490
520
430
400
300
200
100
0
FY2002
FY2003 (Forecast)
FY2004 (Forecast)
14
(Industry) Mobile Phone Subscribers* by System In Japan
In millions
100
80
3G % of total: 25%
3G
60
40
2G
40%
20
0
2001
2002
*Accumulating total
2003
2004
2005
2006
Source: Sharp estimate
15
Sharp’s Mobile Phone Unit Sales
Thousands of units
12,000
10,000
10,000
8,000
8,000
6,000
6,330
4,000
2,000
0
FY2002
FY2003 (Forecast)
FY2004 (Target)
16
Sharp’s New 3G Mobile Phones
NTT DoCoMo
Vodafone
SH900i
V801SH
Compatible with FOMA, which offers
users a variety of contents
Customers can easily send off
Megapixel pictures
2.02 Megapixel CCD camera
W-CDMA/GSM-compatible
Sharp’s ‘Spiral Strategy’ to Create Unique Mobile Phones
17
Flash memory
CCD camera modules
PDA-style mobile phones
LCDs
Next-generation Mobile Phones
Image processing LSI
LCD TVs
PDAs
18
Evolution of Mobile Phones
Enhanced AV
function
Improved camera
function
E-Cash
function
19
Expanding Overseas Business
North
America
Europe
Asia
20
3. Home Appliances
21
(Industry) Domestic Home Appliance Demand
Trillions of yen
3.0
2.3
2.2
2.2
2.0
1.0
0.0
FY2002
FY2003 (Forecast)
FY2004 (Forecast)
22
Sharp’s Products incorporating Plasmacluster Ion Technology
Air conditioners
Air purifiers
Core Device
(Plasmacluster Ion
generating unit)
Kerosene heaters
Humidifiers
Dehumidifiers
Ceramic fan heaters
23
Plasmacluster Ion Technology at Work in Numerous Industries
INAX
Lavatory
FUJITEC
Elevator
DENSO
In-vehicle
ion generator
MAX
Bathroom dryer
Rinnai
Gas heater
DENSO ACE
24-hour ventilation
system
NISSAN
In-vehicle
air conditioner
Plasmacluster Ion
generating unit
24
Sharp’s Unique Electronic Devices
Air-conditioners
Plasmacluster Ions
+
Washing machines
Ag Ions
Kitchen appliances
Health conscious
technology platform
Refrigerators
Environmental conscious
technology platform
25
Device
Device Business
Business
4. LCDs
26
(Industry) Worldwide LCD Demand
Trillions of yen
5.0
4.5
4.0
3.3
3.0
2.7
2.0
1.0
0.0
FY2002
FY2003 (Forecast)
FY2004 (Forecast)
27
Sharp’s LCD Sales
Billions of yen
800
730.0
600
400
525.0
425.2
Largesize
200
0
Small- and
mediumsize
FY2002
FY2003
(Forecast)
FY2004
(Target)
28
Sales of LCD Panels for TVs as % of Sharp’s Total Large-size LCD Sales
FY2003 (Forecast)
FY2004 (Target)
37%
for LCD TVs
70%
for LCD TVs
(Production value)
29
Large-size LCDs
30
Kameyama Plant Production Capacity
Thousands of units/month
Mother Glass Input
45
50
3 times
40
27
30
20
15
10
0
Jan. 2004
Aug. 2004
2005
31
Kameyama Plant
1st phase
2nd phase
3rd phase
Start of operations
Jan. 2004
Aug. 2004
2005
Mother glass input
(accumulated)
15K sheets/month
27K sheets/month
45K sheets/month
Amount of investment
Mother glass size
100 Billion yen
1,500 x 1,800 mm
50 billion yen
32
Small- and medium-size LCDs
33
(Industry) Worldwide Demand for Color Screen Mobile Phones
as % of Total Demand of Mobile Phones
Millions of units
600
500
400
Increase of
140 million
units
300
200
% of Color units
75%
50%
100
25%
0
FY2002
FY2003 (Forecast)
FY2004 (Forecast)
34
High Electron Mobility of Sharp’s System LCDs
CG-Si
CG-Si
a-Si
a-Si
p-Si
p-Si
(Amorphous-Silicon)
(Amorphous-Silicon)
(Poly-Silicon)
(Poly-Silicon)
(Continuous
(Continuous Grain-Silicon)
Grain-Silicon)
No crystal-grain
Crystal-grain with wall
Big crystal-grain with continuous wall
Approx.
3 times
Electron
mobility
(cm2/Vs)
120~140
~0.7
Approx.
500 times
250~350
Integration of peripheral ICs
“Amorphous Silicon”
35
“System LCDs”
Driver ICs
Peripheral
circuits on glass
substrate
Integration
…
Peripheral circuits
Driver IC
Controller circuit
Power supply circuit
RAM
Signal
Peripheral circuitry
CPU
•Thin,
•Thin, light
light weight
weight
•One
•One side
side input,
input, narrow
narrow flame
flame
•Reduction
•Reduction of
of components
components
•High
•High reliability
reliability
36
Sharp’s System LCD Plants
Tenri Plant
Tenri Plant
Mie No.3 Plant
Mie No.3 Plant
1st phase
2nd phase
Start of operations
Oct. 2002
Jun. 2003
Mar. 2004
Production capacity*
(accumulated)
2.5 million
units/month
6.5 million
units/month
12.2 million
units/month
Amount of investment
46 billion yen
50 billion yen 42 billion yen
Mother glass size
620 x 750 mm
730 x 920 mm
*2-inch equivalent panels
37
Sharp’s System LCD Production Capacity
Millions of units/month
14
12.2
12
Approx.
10
2 times
8
6.5
6
4
2.5
2
Tenri
Plant
0
Mie No.3
Plant
2nd phase
Oct.2002
Mie No.3
Plant
1st phase
Jun.2003
Mar.2004
(2-inch equivalent panels)
38
Sharp’s System LCD Sales
Billions of yen
250
200.0
200
150
100.0
100
50
0
4.3
FY2002
FY2003 (Forecast)
FY2004 (Target)
39
5. Photovoltaic Power System
40
(Industry) Worldwide Solar Cell Demand
MW
1,000
860
800
600
700
560
400
200
0
FY2002
FY2003 (Forecast)
FY2004 (Forecast)
Source: Sharp estimate based on PV NEWS (May 2003)
41
Sharp’s Solar Cell Sales
Billions of yen
100
90.0
80
70.0
60
45.1
40
20
0
FY2002
FY2003 (Forecast)
FY2004 (Target)
42
Sharp’s Advantage
World Largest Production Capacity
MW/year
Shinjo Plant Production Capacity
300
300
248
250
200
200
150
Most Advanced Technology
148
Module Conversion Efficiency
100
World Highest*
50
17.4%
0
Jul. 2002
Feb. 2003
Nov. 2003
Mid-2004
*As of November 1, 2003
43
6. ICs
44
(Industry) Worldwide IC Demand
Trillion yen
25.0
19.4
20.0
15.0
15.0
16.7
10.0
5.0
0.0
FY2002
FY2003 (Forecast)
FY2004 (Forecast)
(Industry) Worldwide Demand for Camera-equipped Mobile Phones
as % of Total Demand of Mobile Phones
45
Millions of units
600
500
400
300
200
% of Camera-equipped
mobile phones
100
0
5%
FY2002
20%
FY2003 (Forecast)
40%
FY2004 (Forecast)
46
Sharp’s CCD/CMOS Imager Production Capacity
Thousands of units/month
8,000
7,000
6,000
6,000
4,000
2,000
0
Sep. 2002
Jun. 2003
Oct. 2003
2nd Half of 2004
47
Sharp’s CCD/CMOS Imager Sales
Billions of yen
120
100.0
100
80.0
80
60
40
30.4
20
0
FY2002
FY2003(Forecast)
FY2004 (Target)
48
II.
II. Capital
Capital Investment
Investment (Forecast)
(Forecast)
Billions of yen
250
220.0
220.0
200
150
FY2004
146.2
LCDs 130 billion yen
Large-size LCDs: 100 billion yen
100
Small- and medium-size LCDs:
30 billion yen
50
0
FY2002
FY2003
FY2004
(Forecast)
(Forecast)
49
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.
Similar pages