Financial Material

For fiscal 2011, sales of LCD TVs were 581.3 billion yen, down 27.7%, while on a unit basis, sales were 12.29 million sets, down 17.1%, both compared to the previous year. Due to expanded sales of LCD TV models 60 inches and larger in the U.S. and elsewhere, overseas sales surpassed those of the previous year on both a monetary and unit basis. In Japan, however, business suffered the effects of a significant market contraction, especially in the second half of the year, with demand decrease by more than 60% compared to the same period of the previous year. Although Sharp will continue to seek expansion in large-size models, where it has advantages, the first half of the year is forecast to present a significant sales decline for Sharp compared to the same period of the previous year. With this in mind, we project fiscal 2012 sales of 500.0 billion yen, down 14.0%, and unit sales of 10.00 million sets, down 18.7%.

Sales of LCDs in fiscal 2011 were 720.9 billion yen, down 29.8% from the previous year. For fiscal 2012, with the start of full-fledged mass production of IGZO LCDs, we expect to sell more LCDs for mobile terminals. We project sales of 930.0 billion yen, up 29.0%, compared to the previous year. Currently, demand for high-resolution displays for smartphones and tablet terminals is expanding rapidly. In such circumstances, Sharp's IGZO LCDs, which combine superior high-resolution with low-power consumption, are being acclaimed by customers as highly suitable displays for mobile terminals. Although technical issue caused a shipment delay at launch, we are now gradually increasing shipments of IGZO LCDs. We forecast high-resolution displays including IGZO LCDs and CG Silicon LCDs to be a big driver of growth in LCD business during fiscal 2012.

Sales of mobile phones in fiscal 2011 were 305.8 billion yen, down 26.0%, and unit sales were 7.70 million sets, down 20.9%. Due to the severe underlying business environment, Sharp projects fiscal 2012 mobile phone sales of 280.0 billion yen, down 8.5% from the previous year, and unit sales of 7.70 million sets, the same level as the previous year. We will launch stylish new products with high-resolution and large-size LCDs and designs that promote user-friendliness and durability for longer airtime, along with specifications including the latest OS and high-speed communication services such as LTE, which allow us to take a lead over our competitors in basic functionality.

Sales of Solar Cells in fiscal 2011 were 223.9 billion yen, down 15.7%. On a production volume basis, sales were down 13.6% to 1,073MW. The Japanese market is expected to grow significantly due to upgrading of a feed-in tariff system in July 2012, based on a "bill on special measures for renewable energy." Sharp will strengthen efforts in large-scale solar power generation systems and the power generation business, areas where we expect such feed-in tariff to facilitate market growth, and work hard to turn around the company's business structure and profit structure. For fiscal 2012, Sharp projects sales of solar cells to be 260.0 billion yen, up 16.1% compared to the previous year, and on a production volume basis, 1,400MW, up 30.4%.