Financial Material

While the world economy in the nine months ended December 31, 2010 showed some recovery overall, there remained strong uncertainty as factors like the credit crunch and high unemployment continued to hold the economy back. In Japan, the Eco-Point Program helped boost demand, but the electronics industry continued to weather a tough management environment in the face of impediments like the appreciation of the yen and deflation. Despite these hurdles, Sharp significantly increased its sales and profits in the nine months against the same period last year. Net sales were 2,329.4 billion yen, up 15.1% from the same period last year. Operating income was 66.5 billion yen, 2.9 times that of the same period last year. Net income was 21.8 billion yen, an improvement of 30.4 billion yen from the net loss of 8.5 billion yen in the same period last year.