Financial Material

In the first half of fiscal 2010, the global economic situation was characterized by China and emerging countries continuing on a track toward expansion, while in developed nations, the pace of recovery slowed. In particular, in Japan, the steep appreciation of the yen (7.4% increase in value against the U.S. dollar and 17.2% against the euro), coupled with falling stock prices and continued deflation, led to an even harsher business environment for the electronics industry. Nevertheless, Sharp was able to achieve a significant improvement in both sales and profits during the first half compared to the same period last year. For the six months ended September 30, 2010, net sales were 1,503.9 billion yen, up 16.7% from the same period last year. Operating income was 43.4 billion yen, approximately 28 times that of the same period last year. Net income was 14.3 billion yen, an improvement of 32.0 billion yen from the net loss of 17.7 billion yen in the same period last year. The restructuring charges of 14.6 billion yen posted in the same period last year were not incurred in this first half. Based on these results, we will distribute an interim dividend of 10 yen per share, the same level as the year-end dividend last year.