Sales by product group include internal sales and transfer between segments (Product Business and Device Business).

The full-year forecast for Digital Information Equipment has been revised for sales and operating income, as we foresee worsened profitability due to a market downturn and intensifying competition in our main markets.
Sales for the third quarter of fiscal 2014 were down 11.2% over the same period last year to 122.6 billion yen and the operating loss was 3.5 billion yen, due to sluggish sales of LCD TVs.
In Japan, we will expand our product lineup and revamp the value chain to become more cost competitive. In North America, we will create high-value-added models by enhancing our 4K lineup and by commercializing next-generation high-resolution TVs. In China, we will reduce channel inventory and revamp sales channels. Through these measures, we will carry out fundamental restructuring that includes a thorough reduction of fixed costs, so that we can return to profitability at the earliest possible date.
In Europe, meanwhile, we will continue the steady implementation of structural reforms so that we can ensure we return to profitability in fiscal 2015 and beyond.

Sales of Communications were down 8.4% over the same period last year to 72.0 billion yen. However, operating income was up 62.2% to 8.2 billion yen, thanks to factors including the launch of high-value-added models and cost reductions.
We will continue to come out with new-generation mobile phones and other specialized models so that we can increase our share of the Japanese market.

Sales of Health and Environmental Equipment were down 5.4% over the same period last year to 77.6 billion yen, and operating income was down 25.1% to 4.2 billion yen.
Overseas sales of air purifiers were solid. But domestic sales of this product group were down due to sluggish overall demand for white goods. Profits were down in Japan due to currency fluctuations.
We will cope with the currency fluctuations by increasing domestic production of high-value-added products, and by strengthening our local production for local consumption approach. The latter involves pushing products specifically geared to ASEAN markets and strengthening our sales structure for the region.
The full-year forecast has been revised for sales and operating income.

The full-year forecast for Energy Solutions has been revised for sales and operating income, reflecting our worsening performance. Factors such as declining profits in businesses in Japan due to a slow response to exchange rate fluctuations, a decrease in new home construction, and low demand for industrial-use products, had a negative impact on our performance.
Sales for the third quarter of fiscal 2014 were down 50.6% over the same period last year to 53.6 billion yen, and the operating loss was 1.6 billion yen.
To counter this situation, we will reduce costs by streamlining our organizational structure in line with market scale and by revamping the value chain. Also, we will globalize our energy solution business. Through these measures, we will push ahead with fundamental reforms. At the same time, we will make steady efforts at structural reform in Europe, thus improving profitability.

Sales of Business Solutions were up 10.5% over the same period last year to 85.1 billion yen, and operating income was up 25.2% to 7.6 billion yen.
We will strive to expand this business by strengthening our solution services, mainly with respect to unique displays—one of our areas of strength—and MFPs.

Sales of LCDs were below initial forecast due to factors including slow demand growth in the market for tablets and other medium-size LCDs and an increase in channel inventory in China. As well, profitability dropped due mainly to a worsened model mix that resulted from lower sales of high-value added models, reflecting slow demand growth in the high-resolution LCD market. Based on this situation, the full-year forecast has been revised for sales and operating income.
Sales for the third quarter of fiscal 2014 were down 14.2% over the same period last year to 238.0 billion yen, and operating income was down 55.9% to 11.4 billion yen. We are aiming to stabilize our income base by expanding sales of medium-size LCDs, by strengthening our sales structure and improving our product offerings in China, where market competition is undergoing change, and by optimizing the mix of LCD applications we offer.

Sales of Electronic Devices increased by 46.7% over the same period last year to 156.1 billion yen, as sales of camera modules for smartphones increased dramatically. However, operating income was down 37.5% to 2.6 billion due to factors including intensifying price competition and a worsened model mix.
To expand business in the integration of Sharp’s displays and electronic devices, we will strengthen cooperation between these product groups. We will shift to high-value-added growth areas, including high-color-rendering LEDs and touch-panel solutions, and we will promote cost-saving measures throughout the supply chain, thus improving the product mix and stabilizing the income base.
The full-year sales forecast has been revised.