Sales of LCD color TVs for fiscal 2004 were 308.7 billion yen, approximately 1.8 times the level of the previous year. Unit sales were 2.72 million units, approximately 1.8 times the level of the previous year.
The retail price of LCD color TVs in the worldwide market has dropped by approximately 30% compared to prices for the same screen size a year ago. In fiscal 2004, the percentage of Sharp's total unit sales comprising models 30 inches and larger was about 22% compared to the approximately 15% for fiscal 2003. Given that the sales ratio of large-screen models increased, the average unit selling price showed only a slight drop of around 3% compared to the previous year.
For fiscal 2005, we are aiming for sales of 400.0 billion yen, up 29.5% over the previous year, and total unit sales of 4.0 million sets, approximately 1.5 times the level of fiscal 2004.

At the beginning of this year, we estimated worldwide demand for LCD color TVs at 12.4 million units for fiscal 2005. However, we have upwardly changed our estimate to 15.0 million units, approximately 1.8 times the level of fiscal 2004, due to steadily growing demand that is higher than expected. As broadcasting around the world continues to shift to digital and high-definition formats, demands for greater resolution in video images are growing stronger. Sharp intends to strengthen its line-up of large-screen models equipped with full-spec high-definition LCD panels, and will work to establish the reputation that, for viewing high-definition, LCD color TVs are the best. In fiscal 2005, the percentage of Sharp's total unit sales comprising models 30 inches and larger is projected to increase to around 30%. We also intend to win the battle against competing flat-panel TVs by strengthening the competitiveness of our AQUOS LCD color TVs, which includes improving picture images as well as slashing costs by incorporating our proprietary system LSIs.

Regarding large-size LCDs, more and more consumers are finding large-screen LCD color TVs to be more affordable than before. As a result, we can expect demand for large-screen LCD color TVs to increase. This will likely lead to a shortage in the supply of large-size LCD panels for about a year. Though last year saw a large drop in price for large-size LCD panels, it is likely that the price will fluctuate less for the time being. There is even a possibility that for some models the price may increase. Under these circumstances, we have introduced a third production phase at our Kameyama No. 1 Plant, boosting substrate input capacity from 27,000 panels per month to 45,000 per month. In fiscal 2005, sales of panels for LCD color TVs, including the portion produced at the Mie No. 2 Plant, will represent about 80% of the total sales of large-size LCD panels. We also plan to further improve the basic performance of LCD panels, such as providing even faster response rates.
It should also be noted that the groundwork of our Kameyama No. 2 Plant announced at the beginning of the year is currently under way, with construction set to begin in July. In addition to utilizing 8th-generation substrates for the first time in the world, we are working to achieve the world's highest levels in terms of earthquake resistance and environmental safeguards. As initially planned, we are targeting October of next year to start operations.

Regarding small- and medium-size LCDs, we are seeing a continuous stream of new competitors entering this market, and we anticipate that competition will intensify.
However, Sharp possesses a number of unique "one-of-a-kind" LCD technologies, particularly those for System LCDs. For example, our Mobile Advanced Super View LCD is beginning to be embedded in the latest-model mobile phones and digital cameras, and has received high marks from equipment manufacturers. This display, which brings together wide-viewing-angle Advanced Super View LCD technology nurtured in AQUOS LCD color TVs, and Advanced TFT LCD technology that makes possible a bright, vivid display both indoors and out, is ideal for mobile devices. Sharp intends to differentiate itself from competitors and take the lead in the market for small- and medium-size LCDs based on the strength of its advanced technologies.

For LCDs as a whole, total sales for fiscal 2004 were 720.1 billion yen, up 36.2% over the previous year. Operating income was 55.6 billion yen, up 45.6% over the previous year.
We were able to maintain consistent profit levels even during the last quarter (January through March 2005) a period during which the LCD business environment continued to be intensely competitive. This was the result of a strategic decision by Sharp early on to increase the relative proportion of high-value-added LCDs for TV use and small- and medium-size LCDs in our line-up. We will continue to pursue this strategy in the future, and will be working hard to boost both sales and profits.
For fiscal 2005, we are projecting sales of 830.0 billion yen, up 15.3%, and operating income of 61.0 billion yen, an increase of 9.7%.

Total sales for fiscal 2004 were 117.4 billion yen, approximately 1.6 times over the previous year. For fiscal 2005, we are forecasting sales of 150.0 billion yen, an increase of 27.7%.
Awareness of the need to preserve the global environment has grown much stronger in recent days, with the Kyoto Protocol coming into force proving to be a turning point.
Corporations are making it a priority to engage themselves in environmental protection and energy conservation from the standpoint of corporate social responsibility (CSR), and demand for photovoltaic power systems is expected to grow significantly not only for residential use, but also for industrial use.
Last year, to work toward strengthening photovoltaic products designed for industrial applications, Sharp brought to market the Illuminating Solar Panel ("Lumiwall") in which energy-efficient, long-life, high-brightness LEDs for illumination are integrated with thin-film, "see-through" solar cells for power generation. Lumiwall panels admit external light while generating electricity, and can be used for illumination at night. Thus, they can be installed as windows in buildings, or as the wall surfaces of glass buildings, and we anticipate that their adoption as a building material will expand. We also intend to meet this growing demand by expanding our line-up of models intended for industrial applications, including high-power 210-watt photovoltaic modules for large-scale systems and enhance-dstrength modules designed for installation on rooftops of multi-story high-rise buildings.
As for Sharp's solar cell business, we are offering a wide variety of models, making it possible to propose products to meet specific needs. Models include polycrystalline photovoltaic modules that are currently the dominant type for residential applications, single-crystal photovoltaic modules that have a proven track record in a wide range of uses in extreme environments, such as on space satellites and lighthouses, and new types of photovoltaic modules such as modules using thin films. We also intend to expand our solar cell business by exploiting these strengths in the future to meet a wide range of user needs.
n a survey conducted by PV News of the U.S., Sharp's worldwide market share in 2004 was 27.1% measured by production volume, the number one in the world for the fifth straight year. This January, Sharp further bolstered its production capabilities, already the highest in the world, by expanding production capacity at our Katsuragi Plant, our flagship facility, from 315 megawatts (MW) annually to 400 MW. In fiscal 2005, we will again be studying further expansion of our production system. Total worldwide demand for solar cells is set to go from 867 MW in fiscal 2004 to 1,600 MW by fiscal 2006, an increase of approximately 80%. As the world's leading manufacturer of solar cells, Sharp intends to achieve its corporate vision of becoming a No Global Warming Burden Company by taking the lead in this expanding market in the future.

Total sales for fiscal 2004 were 402.2 billion yen, up 20.6% over the previous year, with unit sales of 9.98 million sets, an increase of approximately 15%.
For fiscal 2005, we are planning sales of 410.0 billion yen, up 1.9% over the previous year. On a unit volume basis, we project sales of 11.0 million sets, an increase of approximately 10%.
Sharp's market share in Japan in fiscal 2004 was around 15% on a unit volume basis. We were able to increase sales and thus boost our market share even in the midst of the sluggish Japanese mobile phone market. Sharp is shifting to 3G mobile phones while, at the same time, strengthening the performance aspects of its mobile phone products, for example, by upgrading and enhancing audio-visual functions. And in fiscal 2005, we are aiming at even better performance while also working to differentiate our products from those of our competitors in terms of design and user interface.