Consolidated Financial Results for the Year Ended March 31, 2016 Ⅰ. Financial Results for Fiscal 2015 I f ti by b Segment S t Ⅱ Information Ⅱ. g Alliance with Hon Hai Group p Ⅲ. Strategic Ⅳ. Supplementary Data SHARP CORPORATION May 12, 2016 Forward-Looking Forward Looking Statements This presentation material contains certain statements describing the future plans, strategies and performance of Sharp Corporation and its consolidated subsidiaries (hereinafter “Sharp”). These statements are not based on historical or present fact, but rather assumptions and estimates based on information currently available. These future plans, strategies and performances are subject to known and unknown risks, uncertainties and other factors. Sharp’s actual performance, business activities and financial position may differ materially from the assumptions and estimates provided on account of the risks, uncertainties and other factors. Sharp is under no obligation to update these forward-looking statements in light of new information, future events or any other factors. The risks, uncertainties and other factors that could affect actual results include, but are not limited to: (1) The economic situation in which Sharp operates; (2) Sudden, rapid fluctuations in demand for Sharp’s products and services, as well as intense price competition; (3) Changes in exchange rates (particularly between the yen and the U.S. dollar, the euro, and other currencies); (4) Regulations such as trade restrictions in other countries; ((5)) The p progress g of collaborations and alliances with other companies; p ; (6) Litigation and other legal proceedings against Sharp; (7) Rapid technological changes in products and services, etc. *Amounts less than 100 million y yen shown in this presentation p material have been rounded down. Copyright © 2016 SHARP CORPORATION, all rights reserved. Ⅰ. Financial Results for Fiscal 2015 1 Financial Results for Fiscal 2015 • Fiscal 2015 net sales were 2,461.5 billion yen, down 11.7% against the previous year. (Billions of Yen) FY2014 Fiscal Year FY2015 1H 3Q 4Q 2H Fiscal Year Changes (Y on Y) 2,786.2 1,279.6 663.3 518.5 1,181.9 2,461.5 -11.7% -48.0 -25.1 -3.8 -132.9 -136.8 -161.9 - (margin) ((-1 1.7%) 7%) ((-2 2.0%) 0%) ((-0 0.6%) 6%) ((-25 25.6%) 6%) ((-11 11.6%) 6%) ((-6 6.6%) 6%) Profit Attributable to Owners of Parent -222.3 -83.6 -24.7 -147.6 -172.3 -255.9 (margin) (-8 0%) (-8.0%) (-6 5%) (-6.5%) (-3 7%) (-3.7%) (-28 5%) (-28.5%) (-14 6%) (-14.6%) (-10 4%) (-10.4%) Net Sales Operating Income - 2 Other Income (Expenses) (Billions of Yen) FY2014 FY2015 Fi Fiscal l Year Y Operating Income Other Income (Expenses) Equity in earnings of affiliates 1H 3Q 4Q 2H Changes (Y on Y) Fi Fiscal l Year Y -48.0 -25.1 -3.8 -132.9 -136.8 -161.9 -113.9 -140.7 -50.0 -14.2 -4.7 -19.0 -69.1 +71.6 +5.5 +3.0 -0.1 -1.3 -1.5 +1.4 -4.0 Gain on sales of noncurrent assets Gain on sales of investment securities Reversal of provision for loss on litigation +11.1 +0.3 +0.4 +15.1 +15.6 +15.9 +4.8 +22.9 +1.8 -0.0 +0.1 +0.1 +1.9 -21.0 +19.2 +2.0 - - - +2.0 -17.1 Interest expense -23.1 -9.9 -4.5 -4.1 -8.7 -18.7 +4.4 - +7.1 7.1 +1.3 1.3 -0.0 0.0 +1.3 1.3 +8.4 8.4 +8.4 8.4 -104.0 -11.1 -2.7 -10.8 -13.6 -24.7 +79.2 Restructuring charges -21.2 -35.3 -1.4 -1.4 -2.8 -38.1 -16.9 Settlement -14.3 - - - - - +14.3 -188.8 -75.2 -18.1 -137.7 -155.8 -231.1 -42.2 -33.5 -8.3 -6.5 -9.9 -16.4 -24.8 +8.6 -222.3 -83.6 -24.7 -147.6 -172.3 -255.9 -33.6 Receipt of settlement package Impairment loss Pretax Income Income Taxes, etc. Profit Attributable to Owners of Parent 3 Variance Between Fiscal 2015 Actual Results and Forecast At Third Quarter Financial Announcement (Billions of Yen) FY2015 Forecast （Feb.4） Net Sales Operating Income (margin) FY2015 Actual results Actual results vs Forecast 2 700 0 2,700.0 2 461 5 2,461.5 -238.4 238 4 10.0 -161.9 -171.9 (0.4%) (-6.6%) (Before calculation vs of costs for Forecast restructuring and structural reforms) Costs for restructuring g and structural reforms in 4Q • CE marketing measure costs,, etc. -35.8 • Further variance between polysilicon appraisal value and long term contract price long-term -7.7 • Valuation estimate change of inventory -47.0 • Others Oh Inventory write-down etc. -30.5 2 461 5 2,461.5 -238.4 238 4 -40.7 -50.7 4 Sales by Segment (Billions of Yen) FY2014 Fiscal Year Consumer Electronics FY2015 FY2015 1H 3Q 4Q 2H Fiscal Year vs Forecast （Feb.4） Fiscal Year Forecast （Feb.4） Change (Y on Y) 982.7 435.5 204.2 170.8 375.1 810.7 -59.2 -17.5% 870.0 270.8 78.7 34.5 43.5 78.1 156.8 -13.1 -42.1% 170.0 343.3 172.3 88.8 93.9 182.8 355.1 -4.8 +3.5% 360.0 Electronic Components and Devices 466.6 251.2 146.4 92.3 238.7 490.0 -39.9 +5.0% 530.0 Display Devices 907.1 391.2 226.2 154.1 380.3 771.5 -98.4 -14.9% 870.0 2,970.7 1,329.0 700.3 554.9 1,255.2 2,584.3 -215.6 -13.0% 2,800.0 -184.5 -49.3 -36.9 -36.3 -73.3 -122.7 - - -100.0 2,786.2 1,279.6 663.3 518.5 1,181.9 2,461.5 - -11.7% 2,700.0 Energy Solutions Business Solutions Subtotal Adjustments Total *Sales include internal sales between segments. 5 Sales by Segment (Billions of Yen) 1,200 Left bar : FY2014 Right g bar: FY2015 1,000 800 600 400 200 0 Consumer Electronics Energy Solutions Business Solutions Electronic Components and Devices Display Devices *Sales include internal sales between segments. 6 Operating Income by Segment (Billions of Yen) FY2014 Fiscal Year Consumer Electronics 1H 3Q 4Q FY2015 FY2015 2H Fiscal Year Forecast （Feb.4） Fiscal Year vs Forecast （Feb.4） Change g (Y on Y) 19.0 (1.9%) -1.9 (-0.5%) 7.5 (3.7%) -27.4 (-16.0%) -19.8 (-5.3%) -21.8 (-2.7%) -41.8 - 20.0 (2.3%) Energy Solutions -62.6 (-23.1%) -2.6 (-3.4%) -5.0 (-14.7%) -10.7 (-24.6%) -15.7 (-20.2%) -18.4 (-11.7%) -11.4 - -7.0 (-4.1%) Business Solutions 31.3 (9.1%) (9 1%) 16.7 (9.7%) (9 7%) 7.1 (8.0%) (8 0%) 11.9 (12.7%) (12 7%) 19.0 (10.4%) (10 4%) 35.8 (10.1%) (10 1%) -2.1 +14.4% 38.0 (10.6%) (10 6%) Electronic Components and Devices 0.6 (0.1%) 8.0 (3.2%) 1.9 (1.4%) -8.5 (-9.2%) -6.5 (-2.7%) 1.4 (0.3%) -16.5 2.2-fold 18.0 (3.4%) Display Devices 0.5 (0.1%) -26.4 (-6.8%) -10.7 (-4.7%) -91.9 (-59.6%) -102.6 (-27.0%) -129.1 (-16.7%) -99.1 - -30.0 (-3.4%) -11.0 ((-0.4%) 0 4%) -37.0 -6.3 ((-0.5%) 0 5%) -18.8 0.8 (0.1%) (0 1%) -4.7 -126.6 ((-22.8%) 22 8%) -6.2 -125.7 ((-10.0%) 10 0%) -11.0 -132.1 ((-5.1%) 5 1%) -29.8 -171.1 - - - 39.0 (1.4%) (1 4%) -29.0 -48.0 ((-1.7%) 1.7%) -25.1 ((-2.0%) 2.0%) -3.8 ((-0.6%) 0.6%) -132.9 ((-25.6%) 25.6%) -136.8 ((-11.6%) 11.6%) -161.9 ((-6.6%) 6.6%) - - Subtotal Adjustments Total 10.0 (0.4%) *Figures within parentheses indicate operating margin. 7 Operating Income by Segment (Billions of Yen) 40 20 Left bar : FY2014 Right bar: FY2015 0 -20 -40 -60 -80 -100 -120 -140 Consumer Electronics Energy Solutions Business Solutions Electronic Components and Devices Display Devices 8 Consolidated Balance Sheets • Cash, Cash time deposits and restricted cash increased from 234.5 234 5 billion yen at the end of December 2015 to 275.3 billion yen. • The equity ratio decreased from 8.6% at the end December 2015 to -2.7%. (Billions of Yen) FY2014 FY2015 FY2014 End of Mar. 2015 End of Dec. 2015 End of Mar. 2016 Cash, time deposits and restricted cash 258.4 234.5 275.3 Notes and accounts receivable 605.6 469.3 430.0 Inventories 338.3 299.0 184.3 96.7 97.9 76.2 1,299.1 1,100.8 965.9 Other current assets End of Dec. 2015 End of Mar. 2016 Short-term b borrowings i 848 9 848.9 664 6 664.6 638 7 638.7 Notes and accounts payable 468.0 404.6 312.6 Other current liabilities 369 9 369.9 310 2 310.2 423 4 423.4 1,686.9 1,379.6 1,374.8 230 4 230.4 191 4 191.4 227 0 227.0 1,917.3 1,571.0 1,601.8 44.5 160.2 -31.2 Net Assets 1,961.9 1,731.3 1,570.6 Equity Ratio 1.5% 8.6% -2.7% Current Liabilities Current Assets Plant and Equipment 400.5 368.4 Investments and Other Assets 262.0 261.9 Deferred Assets 0.0 0.0 1,961.9 1,731.3 Total Assets 351.2 253.4 FY2015 End of Mar. 2015 Long term Long-term Liabilities Liabilities 0.0 Net Assets 1,570.6 Total Liabilities and Assumed increase in value of net assets resulting from strategic alliance with Hon Hai ・ Common shares ・ Class C shares + Increase in value of net assets 288.8 99.9 388 8 388.8 9 Transition of Inventories • Inventory was 184 184.3 3 billion yen yen, down 114 114.7 7 billion yen compared to the end of December 2015 2015, and the ratio vs. monthly sales decreased from 1.39 months to 0.90 months. (Months) (Billi (Billions off Yen) Y ) 600 1.80 1.67 Ratio vs. monthly sales 1 46 1.46 1.38 1.39 1.21 400 338 3 338.3 344 2 344.2 295.1 0 90 0.90 294.2 299.0 184.3 200 LCDs 0 End of Mar. 201 2014 End of Mar. 201 2015 End of Jun. 201 2015 End of Sep. 201 2015 1.20 End of Dec. 201 2015 0.60 0.00 End of Mar. 2016 10 Transition of Interest-Bearing Debt ・ Interest-bearing debt at the end of March 2016 declined by 25.4 25 4 billion yen in comparison to the end of December 2015 . The ratio vs. monthly sales increased from 3.50 months to 3.56 months. ・ Net interest-bearing debt* decreased from 521.9 billion yen at the end of December 2015 to 455.6 billion yen (Months) (Billi (Billions off Yen) Y ) 1,174.4 974 2 974.2 982 4 982.4 1,000 Interest-bearing debt on the ratio vs. monthly sales Left bar: Interest-bearing debt Right bar: Net interest-bearing debt 1,093.5 713.9 715.7 8.00 774.6 560.4 5.69 758.7 583.6 500 4.48 4.20 3 76 3.76 3 56 3.56 End of Jun. 2015 End of Sep. 2015 756.4 521.9 3.50 731.0 455.6 3 56 3.56 0 Net D/E ratio 4.00 0.00 End of Mar. 2013 End of Mar. 2014 End of Mar. 2015 7.9 3.7 23.7 2.4 3.5 End of Dec. 2015 3.5 End of Mar. 2016 - *Net interest-bearing debt: interest-bearing debt – cash, time deposits, and restricted cash 11 Ⅱ Information by Segment Ⅱ. 12 Consumer Electronics (Billions of Yen) FY2015 1H 4Q 2H Fiscal Year Changes (Y on Y) 435.5 204.2 170.8 375.1 810.7 -17.5% -1.9 7.5 -27.4 -19.8 -21.8 - ( 0 5%) (-0.5%) (3 7%) (3.7%) ( 16 0%) (-16.0%) ( 5 3%) (-5.3%) ( 2 7%) (-2.7%) Sales Operating Income (margin) 3Q *Sales include internal sales between segments FY2015 Results (Y on Y) FY2015 Results (vs Feb.4) • Sales: 17.5% decrease • Operating income: 40.9 billion yen decrease Measures & A hi Achievements t • Sales: Downturn by 59.2 billion yen • Operating income：Downturn by 41.8 billion yen • Creating new products and expanding the market of AIoT-equipped products such as communication robots, LCD TVs, and cooking appliances (e.g., RoBoHoN, AQUOS Cocoro Vision y , etc.)) Player, • Advancing and expanding the lineup of locally fit products for emerging countries, centered on home appliances (mosquito-catching air purifier, etc.) 13 Energy Solutions (Billions of Yen) FY2015 1H 3Q 4Q 2H Fiscal Year Changes (Y on Y) Sales 78.7 34.5 43.5 78.1 156.8 -42.1% Operating Income -2.6 -5.0 -10.7 -15.7 -18.4 - ((-3 3.4%) 4%) ((-14 14.7%) 7%) ((-24 24.6%) 6%) ((-20 20.2%) 2%) ((-11 11.7%) 7%) (margin) *Sales include internal sales between segments FY2015 Results (Y on Y) • Sales: 42.1% decrease • Operating income: 44.2 billion yen increase Measures & Achievements FY2015 Results (vs Feb.4) • Sales: Downturn by 13.1 billion yen • Operating income：Downturn by 11.4 billion yen • Strengthening links to cloud computing services for HEMS systems and energy-saving appliances that utilize solar energy and storage batteries • Aggressive business expansion of EPC and IPP business centered by Fukushima recovery projects • Moving ahead with solutions businesses that respond to regional market needs 14 Business Solutions (Billions of Yen) FY2015 1H Sales Operating Income (margin) 3Q 4Q 2H Changes (Y on Y) Fiscal Year 172.3 88.8 93.9 182.8 355.1 +3.5% 16.7 7.1 11.9 19.0 35.8 +14.4% (9 7%) (9.7%) (8 0%) (8.0%) (12 7%) (12.7%) (10 4%) (10.4%) (10 1%) (10.1%) *Sales include internal sales between segments FY2015 Results (Y on Y) FY2015 Results (vs Feb.4) • Sales: 3.5% increase • Operating income: 4.5 billion yen increase Measures & Achievements • Sales：Downturn by 4.8 billion yen • Operating income：Downturn by 2.1 billion yen • Expanding sales channels and releasing new products to increase and stabilize the profit base in the MFP business • Enhancing the solutions business with a focus on MFPs and displays • Improving and expanding new businesses such as robotics, where market growth is expected 15 Electronic Components and Devices (Billions of Yen) FY2015 1H Sales Operating Income ( (margin) i ) 3Q 4Q 2H Fiscal Year Changes (Y on Y) 251.2 146.4 92.3 238.7 490.0 +5.0% 8.0 1.9 -8.5 -6.5 1.4 2.2-fold ((3.2%)) ((1.4%)) ((-9.2%)) ((-2.7%)) ((0.3%)) *Sales include internal sales between segments FY2015 Results (Y on Y) • Sales: 5.0% increase • Operating income: 2.2-fold Measures & Achievements A hi t FY2015 Results (vs Feb.4) • Sales：Downturn by 39.9 billion yen • Operating income：Downturn by 16.5 billion yen • Expanding business for camera modules used in smartphones, automotive systems, and other applications g to value-added fields using gp proprietary p y technologies g and expanding p g featured devices: • Shifting color night-vision camera and a lineup of new sensor products for detecting dust, PM2.5, and environmental factors 16 Display Devices (Billions of Yen) FY2015 1H 3Q 4Q 2H Changes (Y on Y) Fiscal Year Sales 391.2 226.2 154.1 380.3 771.5 -14.9% Operating Income -26.4 -10.7 -91.9 -102.6 -129.1 - ((-6.8%)) ((-4.7%)) ((-59.6%)) ((-27.0%)) ((-16.7%)) ( (margin) i ) *Sales include internal sales between segments FY2015 Results (Y on Y) FY2015 Results (vs Feb.4) • Sales: 14.9% decrease • Operating income: 129.7 billion yen decrease Measures & A hi Achievements t • Sales：Downturn by 98.4 billion yen • Operating income：Downturn by 99.1 billion yen • Expanding business for medium-size displays used in PCs, tablets, automotive systems, and others to stabilize profits • Creating new, new high high-value-added value added applications centered on Free Free-Form Form Displays • Developing technology of OLED displays utilizing IGZO and LTPS technologies 17 Display Devices Current portfolio Future portfolio p PC Smartphone (4K) High High Latent demand Smartphone (FHD/HD) (IPS・FHD) Tablet (for leading companies) Auto Automotive IA Smartphone (for leading companies) PC IWB/ signage A t Automotive ti (for leading companies) IA Smartphone (for leading companies) PC PC (Beyond FHD) (Beyond FHD) TV TV Lo ow Lo ow Low New display Non-display (IPS・FHD) Tablet IWB/ signage Growth h Growth h Smartphone p (FHD/HD) Smartphone (4K) Profitability High Circle size corresponds p to amount of sales Low Profitability High 18 Ⅲ Strategic Alliance with Hon Hai Group Ⅲ. 19 Strategic Alliance Between Sharp and Hon Hai After the approval at General Meeting of Shareholders Aim for the Closing until June end Sharp • Innovative technology development capability • “Sharp” point of view • Long established brands Creation of extensive synergy Open doors to new world ld off IoT I T with ith competitive products and Industry-first innovations that services change g p people’s p ways y of livings g Hon Hai Group • World’s largest production capacity • Global customer base • Innovative technology development capability Worldwide market expansion of high-quality g q yp products by y Hon Hai’s globally renowned customers 20 Structural Reforms Aimed for Maximum Alliance Effect and Early Return to Profitability １ ２ Management Resources Optimization Responsible Organization Structure Accelerating Regrowth Base Business Transfer of Headquarter q to Sakai base Transfer partial functions of y branch (Shibaura) ( ) to Tokyo Makuhari Building Overseas base reorganization eo ga a o u utilizing g Hon o Hai Group bases Personnel Global personnel optimization (including affiliate companies) CE Company reorganization aiming for expansion in “IoT” and “Health and Environment” business （5→6 Companies） Clarifying the profit responsibility for each business units Headquarter Streamlining organization by transferring functions to business units Visualization of HQ allocation cost ３ Establishment of Personnel System to Reward Achievements Basic Treatment Once closing, repeal the current salary reduction （management 5%, regular employee 2%) Bonus recovery by early return to profitability Compensation plans to reward achievements Introduction of stock option plan Treatments corresponding to duty Introduction of roll grade system (regular employee) Management M t demotion d ti system introduction 21 Ⅳ Supplementary Data Ⅳ. 22 Sales and Operating Income by Segment (Billions of Yen) FY2015 Sales Fiscal Year FY2015 Operating Income Change (Y on Y) 2H 435.5 375.1 810.7 -17.5% Consumer Electronics -1.9 -19.8 -21.8 (-0.5%) (-5.3%) (-2.7%) Energy Solutions 78 7 78.7 78 1 78.1 156 8 156.8 -42.1% 42 1% Energy gy Solutions -2.6 2.6 -15.7 15.7 -18.4 18.4 (-3.4%) (-20.2%) (-11.7%) Business Solutions 172.3 182.8 355.1 +3.5% Business Solutions Electronic Components and Devices 251.2 238.7 490.0 +5.0% Electronic Components and Devices Display Devices 391.2 380.3 771.5 -14.9% 1,329.0 , 1,255.2 , 2,584.3 , -13.0% Consumer Electronics Subtotal Adjustments Total -122.7 - 1,279.6 1,181.9 2,461.5 -11.7% -49.3 -73.3 1H Fiscal Year 1H Display Devices Subtotal Adjustments Total 2H 16.7 19.0 (9.7%) (10.4%) Change (Y on Y) - 35.8 +14.4% (10.1%) 1.4 2.2-fold 8.0 -6.5 (3.2%) (-2.7%) (0.3%) -26.4 -102.6 -129.1 - (-6.8%) (-27.0%) (-16.7%) -125.7 -132.1 ( 0 5%) (-10.0%) (-0.5%) ( 10 0%) -6.3 ( 5 1%) (-5.1%) -18.8 -11.0 -25.1 25 1 - -29.8 - -136.8 136 8 -161.9 161 9 - (-2.0%) (-11.6%) (-6.6%) *Figures within parentheses indicate operating margin. 23 Quarterly Sales and Operating Income by Segment (Billions of Yen) FY2015 Sales FY2015 Operating Income 1Q 2Q 3Q 4Q 201.9 233.6 204.2 170.8 Energy S l ti Solutions 36.8 41.8 34.5 43.5 Energy S l ti Solutions (-10.7%) Business Solutions 80.6 91.7 88.8 93.9 Business Solutions 6.8 9.9 (8.4%) (10.8%) Electronic Components and Devices 136.6 114.6 146.4 92.3 Electronic Components and Devices Di l Display Devices 187.8 203.3 226.2 154.1 Subtotal 643.9 685.1 700.3 554.9 Subtotal Adjustments -25.6 -23.7 -36.9 -36.3 Adjustments Total 618 3 618.3 661 3 661.3 663 3 663.3 518 5 518.5 T t l Total Consumer Electronics 1Q Consumer Electronics Display Devices 2Q -11.7 9.7 (-5.8%) (4.2%) -3.9 1.3 3Q 4Q 7.5 -27.4 (3.7%) (-16.0%) -5.0 -10.7 (3.2%) (-14.7%) (-24.6%) 7.1 11.9 (8.0%) (12.7%) 2.8 5.1 1.9 -8.5 (2.1%) (4.5%) (1.4%) (-9.2%) -10.7 -91.9 -13.7 -12.7 (-7.3%) (-6.3%) -19.7 13.3 (-3 1%) (-3.1%) (2 0%) (2.0%) -9.0 -9.7 -28.7 28.7 3.5 (-4.7%) (0.5%) (-4.7%) (-59.6%) 0.8 -126.6 (0 1%) (-22.8%) (0.1%) (-22 8%) -4.7 -6.2 -3.8 3.8 -132.9 132.9 (-0.6%) (-25.6%) *Figures within parentheses indicate operating margin. 24 Sales of Main Products (Billions of Yen) FY2014 1H FY2015 Fiscal Year 2H 1H Fiscal Year 2H Change g (Y on Y) 189.1 180.8 370.0 154.6 129.5 284.2 -23.2% 3 60 3.60 3 43 3.43 7 03 7.03 2 99 2.99 2 83 2.83 5 82 5.82 -17.1% 17 1% 85.9 107.6 193.6 83.5 62.8 146.3 -24.4% 2 41 2.41 3 15 3.15 5 56 5.56 2 26 2.26 1 44 1.44 3 71 3.71 -33.3% 33 3% Refrigerators 47.9 45.6 93.5 48.2 42.5 90.8 -2.9% Air Conditioners 42.1 21.3 63.5 36.0 21.6 57.6 -9.2% Copiers / Printers 73.4 78.5 152.0 78.2 58.8 137.0 -9.9% Camera Modules 73.1 157.8 230.9 123.3 118.7 242.1 +4.8% LCD TVs Unit (million units) Mobile Phones U it (million Unit ( illi units) it ) 25 Sales of Main Products by Quarter (Billions of Yen) FY2014 1Q FY2015 2Q 3Q 85.7 103.3 104.3 76.5 64.1 90.5 81.8 47.7 1 73 1.73 1 86 1.86 1 74 1.74 1 68 1.68 1 41 1.41 1 58 1.58 1 72 1.72 1 10 1.10 49.6 36.2 64.1 43.5 44.1 39.4 27.4 35.3 1.23 1.17 1.79 1.35 1.01 1.25 0.54 0.89 Refrigerators 23.9 24.0 22.1 23.4 23.0 25.1 21.1 21.4 Air Conditioners 23.6 18.4 8.0 13.3 20.6 15.3 8.2 13.4 Copiers p / Printers 34.3 39.1 38.2 40.3 37.2 40.9 25.0 33.7 Camera Modules 27.3 45.7 88.7 69.0 76.0 47.2 75.1 43.6 LCD TVs U it (million Unit ( illi units) it ) Mobile Phones Unit (million units) 4Q 1Q 2Q 3Q 4Q 26 Capital Investment and Depreciation, etc. (Billions of Yen) FY2014 1H FY2015 Fiscal Year 2H 1H Fiscal Year 2H Change (Y on Y) Capital Investment 31.2 31.3 62.6 20.9 24.3 45.2 LCDs 12.9 19.0 31.9 8.9 13.9 22.8 49.9 52.6 102.6 33.7 34.2 68.0 -33.7% 65.8 75.1 141.0 68.6 61.4 130.1 -7.7% Depreciation and Amortization R&D Expenditures -27.8% (Yen) Exchange FY2014 FY2015 Rate 1H Fiscal Year 2H 1H Fiscal Year 2H US Dollar 102 05 102.05 115 83 115.83 108 94 108.94 120 80 120.80 117 50 117.50 119 15 119.15 Euro 137.41 137.14 137.28 133.57 128.59 131.08 27 Capital Investment and Depreciation, etc. by Quarter (Billions of Yen) FY2014 1Q Capital Investment 3Q 4Q 1Q 2Q 3Q 4Q 14.5 16.6 9.3 22.0 9.7 11.1 8.2 16.0 5.7 7.1 4.3 14.7 3.8 5.1 4.9 8.9 24.4 25.5 26.5 26.0 18.0 15.7 17.0 17.2 34.4 31.4 38.1 37.0 36.3 32.3 33.5 27.9 LCDs Depreciation and Amortization R&D Expenditures 2Q FY2015 (Yen) Exchange FY2014 FY2015 Rate 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q US Dollar 101.16 102.93 113.55 118.10 120.37 121.24 120.51 114.49 Euro 138.56 136.26 141.59 132.68 132.66 134.48 131.46 125.71 28 Overseas Sales by Region Top: Sales (Billions of yen) Bottom: Composition ratio (%) FY2014 1H 2H 165.6 19.9% 155.2 15.8% 71.4 71 4 8.6% China FY2015 Fiscal Year Fiscal Year Change (Y on Y) 1H 2H 320.9 17.7% 160.0 18.0% 120.9 14.8% 281.0 16.4% -12.4% 71.0 71 0 7.2% 142.5 142 5 7.8% 69.9 69 9 7.8% 66.6 66 6 8.1% 136.5 136 5 8.0% -4.2% 4 2% 487.8 58.6% 653.0 66.3% 1,140.8 62.8% 554.3 62.2% 530.9 64.7% 1,085.3 63.4% -4.9% Other 107.7 12 9% 12.9% 105.6 10 7% 10.7% 213.4 11 7% 11.7% 106.4 12 0% 12.0% 101.7 12 4% 12.4% 208.1 12 2% 12.2% -2.5% Total 832.7 100.0% 985.1 100.0% 1,817.8 100.0% 890.7 100.0% 820.3 100.0% 1,711.0 100.0% -5.9% The Americas Europe 29