Net sales are expected to be 3,400.0 billion yen, an increase of 8.7% over the previous year.
Operating income is projected to be 190.0 billion yen, up 1.9%, while net income is projected to be 105.0 billion yen, up 3.2%, both representing slightly higher levels compared to fiscal 2006. This is because, under fiscal 2007 tax reform in Japan, Sharp's depreciation and amortization will increase by 20.0 billion yen compared to the figure based on the previous method, and the profit forecast for fiscal 2007 reflects the effect of these revisions.
If calculated on the previous basis, operating income would be 210.0 billion yen, up 12.6%, and net income would be 118.0 billion yen, up 16.0%, both representing double-digit growth.
For the sake of reference, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), an indicator of profit-earning capacity on a cash-flow basis, is projected to be 480.0 billion yen, an increase of 18.7%, compared to the 404.2 billion yen of fiscal 2006.

Capital investment is projected to be 295.0 billion yen, up 3.8% over the previous year, including 197.0 billion yen for the LCD business.
Depreciation and amortization is projected to be 290.0 billion yen, up 33.2%, reflecting the tax reform mentioned previously, while R&D expenditures are projected at 203.0 billion yen, up 6.9%.
We are assuming exchange rates of 115 yen to the U.S. dollar and 150 yen to the Euro.