Consolidated Financial Results for the Third Quarter Fiscal 2015 Ⅰ. Financial Results for 3Q Fiscal 2015 Financial Results Forecast for Fiscal 2015 Ⅱ. Information by Segment Ⅲ. Supplementary Data SHARP CORPORATION February 4, 2016 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 progress of collaborations and alliances with other companies; (6) Litigation and other legal proceedings against Sharp; (7) Rapid technological changes in products and services, etc. *Amounts less than 100 million yen shown in this presentation material have been rounded down. Copyright © 2016 SHARP CORPORATION, all rights reserved. Ⅰ. Financial Results for 3Q Fiscal 2015 Financial Results Forecast for Fiscal 2015 1 Financial Results for 3Q Fiscal 2015 ・ Net sales in the 3Q of FY2015 were 663.3 billion yen, down 13.0% from the same period last year. ・ The downturn in Energy Solutions was offset by other product groups, resulting in sales as forecasted. ・ Structural reforms are progressing steadily. (Billions of Yen) FY2014 3Q Net Sales Operating Income (margin) Net Income Attributable to Sharp Corporation (margin) FY2015 1Q 2Q 1Q to 3Q Change Accumulated (Y on Y) Total Change (Y on Y) 3Q 762.7 618.3 661.3 663.3 -13.0% 1,943.0 -7.1% 22.0 -28.7 3.5 -3.8 - -29.0 - (2.9%) (-4.7%) (0.5%) (-0.6%) -11.9 -33.9 -49.6 -24.7 (-1.6%) (-5.5%) (-7.5%) (-3.7%) (-1.5%) - -108.3 - (-5.6%) 2 Financial Results Forecast for Fiscal 2015 ・ Based on results up to the 3Q, the current business environment, and future estimates, the forecast for FY2015 remains unchanged. ・ The forecast for sales and operating income between segments was revised. ・ Sharp intends to announce the forecast for net income (loss) attributable to Sharp Corporation once it becomes possible to make a reasonable estimate of the impact on consolidated financial statements of the materialization of structural reforms currently under consideration or in progress. (Billions of Yen) FY2015 1Q to 3Q Accumulated Total Net Sales Operating Income (margin) Change (Y on Y) 4Q Forecast Change (Y on Y) Fiscal Year Forecast Change (Y on Y) 1,943.0 -7.1% 756.9 +8.8% 2,700.0 -3.1% -29.0 - +39.0 - 10.0 - (-1.5%) (5.2%) (0.4%) 3 Other Income (Expenses) (Billions of Yen) FY2015 1Q 2Q 1Q to 3Q Accumulated Total Difference (Y on Y) 3Q Difference (Y on Y) -28.7 3.5 -3.8 -25.9 -29.0 -80.2 -1.5 -48.5 -14.2 +5.3 -64.3 -29.1 Equity in earnings of affiliates +1.7 +1.3 -0.1 -0.8 +2.8 -1.8 Gain on sales of investment securities Reversal of provision for loss on litigation +1.7 +0.0 -0.0 -5.7 +1.8 -9.8 +2.0 - - - +2.0 -17.1 Receipt of settlement package +6.2 +0.8 +1.3 +1.3 +8.5 +8.5 Interest expense -5.5 -4.4 -4.5 +1.1 -14.5 +2.9 Impairment loss -6.5 -4.6 -2.7 -0.7 -13.8 -9.4 Restructuring charges - -35.3 -1.4 +7.5 -36.7 -22.0 Settlement - - - - - +14.3 -30.3 -44.9 -18.1 -20.5 -93.4 -109.4 -3.6 -4.7 -6.5 +7.7 -14.9 +8.2 -33.9 -49.6 -24.7 -12.8 -108.3 -101.1 Operating Income Other Income (Expenses) Pretax Income Income Taxes, etc. Net Income Attributable to Sharp Corporation 4 Sales by Segment (Billions of Yen) FY2015 1Q Consumer Electronics 2Q 3Q FY2015 1Q to 3Q Accumulated Total Change (Y on Y) (2/4) Fiscal Year Forecast Change (Y on Y) (10/30) Fiscal Year Forecast Change (Y on Y) 201.9 233.6 204.2 -24.8% 639.8 -16.5% 870.0 -11.5% 870.0 Energy Solutions 36.8 41.8 34.5 -35.6% 113.3 -42.4% 170.0 -37.2% 180.0 Business Solutions 80.6 91.7 88.8 +3.3% 261.2 +3.6% 360.0 +4.9% 350.0 Electronic Components and Devices 136.6 114.6 146.4 -10.4% 397.6 +23.1% 530.0 +13.6% 530.0 Display Devices 187.8 203.3 226.2 -5.0% 617.4 -11.7% 870.0 -4.1% 870.0 Subtotal 643.9 685.1 700.3 -13.8% 2,029.4 -9.3% 2,800.0 -5.7% 2,800.0 Adjustments -25.6 -23.7 -36.9 - -86.3 - -100.0 - -100.0 Total 618.3 661.3 663.3 -13.0% 1,943.0 -7.1% 2,700.0 -3.1% 2,700.0 *Sales include internal sales between segments. 5 Sales by Segment (Billions of Yen) 300 Left bar : 3Q FY2014 Results Right bar: 3Q FY2015 Results 250 200 150 100 50 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) FY2015 1Q Consumer Electronics 2Q -11.7 9.7 7.5 (-5.8%) (4.2%) (3.7%) Energy Solutions -3.9 1.3 -5.0 (-10.7%) (3.2%) (-14.7%) Business Solutions 6.8 9.9 7.1 (8.4%) (10.8%) (8.0%) Electronic Components and Devices Display Devices Subtotal Adjustments Total 1Q to 3Q Accumulated Total Change (Y on Y) 3Q 2.8 5.1 1.9 (2.1%) (4.5%) (1.4%) -13.7 -12.7 -10.7 (-7.3%) (-6.3%) (-4.7%) -15.9% -7.0% -24.2% - 0.8 -9.0 -9.7 -4.7 - -3.8 23.8 -97.0% -7.0 +1.2% -5.4 3.0 - 38.0 (1.7%) 36.0 +21.4% (10.3%) 18.0 18.0 26.6-fold (3.4%) - -30.0 (3.4%) - 39.0 -30.0 - (-3.4%) (-0.3%) (-3.4%) - (1.4%) -23.5 - -29.0 - (-1.5%) (1.8%) (10.6%) 10.0 60.7-fold -37.2 16.0 +4.8% (-4.1%) (-6.0%) (0.1%) (-0.6%) - (2.5%) 13.3 3.5 -7.7 20.0 (10/30) Fiscal Year Forecast Change (Y on Y) (2.3%) (9.1%) (2.0%) (0.5%) -77.0% (-6.8%) -19.7 -28.7 5.5 (2/4) Fiscal Year Forecast Change (Y on Y) (0.9%) (-3.1%) (-4.7%) FY2015 43.0 (1.5%) -29.0 - 10.0 - (0.4%) -33.0 10.0 (0.4%) *Figures within parentheses indicate operating margin. 7 Operating Income by Segment (Billions of Yen) 15 10 Left bar : 3Q FY2014 Results Right bar: 3Q FY2015 Results 5 0 -5 -10 -15 Consumer Electronics Energy Solutions Business Solutions Electronic Components and Devices Display Devices 8 Consolidated Balance Sheets ・Cash, time deposits and restricted cash increased from 175.0 billion yen at the end of September 2015 to 234.5 billion yen at the end of December 2015. ・The equity ratio decreased from 9.4% at the end of September 2015 to 8.6% at the end of December. (Billions of Yen) FY2014 FY2015 FY2014 End of Mar. 2015 End of Sep. 2015 End of Dec. 2015 Cash, time deposits and restricted cash 258.4 175.0 234.5 Notes and accounts receivable 605.6 574.2 469.3 Inventories 338.3 294.2 299.0 96.7 106.4 97.9 1,299.1 1,149.8 1,100.8 Plant and Equipment 400.5 377.1 368.4 Investments and Other Assets 262.0 259.8 261.9 Deferred Assets 0.0 0.0 0.0 1,961.9 1,787.0 1,731.3 Other current assets End of Sep. 2015 End of Dec. 2015 Short-term borrowings 848.9 666.4 664.6 Notes and accounts payable 468.0 422.7 404.6 Other current liabilities 369.9 324.9 310.2 1,686.9 1,414.1 1,379.6 230.4 191.9 191.4 1,917.3 1,606.1 1,571.0 44.5 180.9 160.2 1,961.9 1,787.0 1,731.3 1.5% 9.4% 8.6% Current Liabilities Current Assets Total Assets FY2015 End of Mar. 2015 Long-term Liabilities Liabilities Net Assets Total Liabilities and Net Assets Equity Ratio 9 Transition of Inventories ・ Inventory was 299.0 billion yen, up 4.8 billion yen compared to the end of September 2015, and the ratio vs. monthly sales remained mostly unchanged. (Months) (Billions of Yen) 600 1.80 1.67 Ratio vs. monthly sales 1.46 1.38 1.39 1.21 400 1.20 338.3 344.2 295.1 294.2 299.0 200 0.60 LCDs 0 0.00 End of Mar. 2014 End of Mar. 2015 End of Jun. 2015 End of Sep. 2015 End of Dec. 2015 10 Transition of Interest-Bearing Debt ・ Interest-bearing debt at the end of December 2015 declined by 2.2 billion yen in comparison to the end of September 2015. The ratio vs. monthly sales decreased from 3.56 months to 3.50 months. ・ Net interest-bearing debt* decreased from 583.6 billion yen at the end of September 2015 to 521.9 billion yen. (Months) (Billions of Yen) 1,127.1 1,000 931.8 1,174.4 713.9 5.51 500 0 Net D/E ratio 974.2 982.4 Interest-bearing debt on the ratio vs. monthly sales Left bar: Interest-bearing debt Right bar: Net interest-bearing debt 1,093.5 8.00 774.6 715.7 560.4 5.69 4.48 4.20 3.76 End of Mar. 2012 End of Mar. 2013 End of Mar. 2014 End of Mar. 2015 End of Jun. 2015 1.5 7.9 3.7 23.7 2.4 758.7 756.4 583.6 521.9 3.50 3.56 End of Sept. 2015 4.00 End of Dec. 2015 3.5 0.00 3.5 *Net interest-bearing debt: interest-bearing debt – cash, time deposits, and restricted cash 11 Implementation Status of Medium-Term Management Plan Implementation of the three key strategies announced in the Medium-Term Management Plan is currently making steady progress. Medium-Term Management Plan Three Key Strategies Current Implementation Status Withdrew from TV production/sales; shifted to brand license business in the Americas Ⅰ Restructure business portfolio Review of the production structure of the electronic device business Fundamental restructuring of LCD business Reduce fixed costs Concluding a contract for sales transfer of the head office, continuing to cut remunerations/salaries and bonuses of board of directors and employees Reorganize and strengthen corporate/governance systems Transition to virtual company system, promotion of fundamental restructuring of personnel system (flat & simple organization) Ⅱ Ⅲ 12 Ⅱ. Information by Segment 13 Introduction to Virtual Company System and Vision Company Vision Consumer Electronics Innovation by fusions of technology in Japan and Asia as the main market Energy Solutions Shift to local fit solution business Current Measures & Achievements • • • • Expanding share of 4K TVs in Japan (Oct-Dec 2014: 19.3%→ Oct-Dec 2015: 25.6%) Proceeding with AIoT Cocoro Project (AI+IoT) Creating Sharp one-of-a-kind new products (RoBoHoN, Healsio Hot Cook, etc.) Sharp front load washing machine won the Energy Conservation Award • The industry’s first DC hybrid air conditioner, minimizing conversion loss between AC power and DC power by combining with cloud storage battery, won the Energy Conservation Award Solar power generation system (Black Solar and Roof-fit design maximizing usage of roof space) won the Good Design Award Expanding EPC business in Thailand with establishment of new company • • Business Solutions Electronic Components and Devices Utilization of current product line-up and customer basis & Global solution business expansion with proactive investment increase • • • • Shift to value-added segment centered by sensing business • • Display Devices Gaining stable customers by utilizing the technology advantage and expansion of high-value-added panels • • Sharp’s MFP caught the early demands for printing services in convenience stores by adopting a system for Japan’s new social security card system Expansion of line-up for large displays including 4K 80-inch displays Aggressive promotions of new businesses, the future key segments; for example, presenting the laser MEMS projector module at Wearable Expo in Tokyo Establishment of a system for achieving stable profits by improving production efficiency and reducing fixed costs Shift to high-value-added fields with new devices – Started sales in high potential fields for color night-vision camera – Obtaining new customers of new sensor products for detecting dust, PM2.5, and environmental factors Shift towards highly profitable business structure to expand business in PC, automotive, and medium-size display fields Differentiating products from other competitors by one-of-a-kind technology and new product expansion Expansion of high-value-added panels (curved Free-Form Display won the Minister of Economy, Trade and Industry Award in Good Design Awards) 14 Consumer Electronics (Billions of Yen) FY2015 1Q Sales Operating Income (margin) 2Q 1Q to 3Q Change (Y on Y) 3Q Accumulated Total Change (Y on Y) Fiscal year Forecast Change (Y on Y) 201.9 233.6 204.2 -24.8% 639.8 -16.5% 870.0 -11.5% -11.7 9.7 7.5 -15.9% 5.5 -77.0% 20.0 +4.8% (-5.8%) (4.2%) (3.7%) (0.9%) (2.3%) *Sales include internal sales between segments FY2015 Fiscal Year Forecast (vs Oct. 30 Forecast) FY2015 3Q Results (Y on Y) • Sales: 24.8% decrease • Operating income: 1.4 billion yen decrease Current Measures & Achievements • • • • • Sales: No change • Operating income：Upturn to 4 billion yen Expanding share of 4K TVs in Japan (Oct-Dec 2014: 19.3%→ Oct-Dec 2015: 25.6%*) Proceeding with AIoT Cocoro Project (AI+IoT) Creating Sharp one-of-a-kind new products (RoBoHoN, Healsio Hot Cook, etc.) Sharp front load washing machine won the Energy Conservation Award *Source: Gfk. 15 Energy Solutions (Billions of Yen) FY2015 1Q 2Q 1Q to 3Q Change (Y on Y) 3Q Accumulated Total Change (Y on Y) Fiscal year Forecast Change (Y on Y) Sales 36.8 41.8 34.5 -35.6% 113.3 -42.4% 170.0 -37.2% Operating Income -3.9 1.3 -5.0 - -7.7 - -7.0 - (-10.7%) (3.2%) (-14.7%) (margin) FY2015 3Q Results (Y on Y) • Sales: 35.6% decrease • Operating income: 3.4 billion yen decrease Current Measures & Achievements (-6.8%) (-4.1%) *Sales include internal sales between segments FY2015 Fiscal Year Forecast (vs Oct. 30 Forecast) • Sales: Downturn by 10 billion yen • Operating income：Downturn by 10 billion yen • The industry’s first* DC hybrid air conditioner, minimizing conversion loss between AC power and DC power by combining with cloud storage battery, won the Energy Conservation Award • Solar power generation system (Black Solar and Roof-fit design maximizing usage of roof space) won the Good Design Award • Expanding EPC business in Thailand with establishment of new company *As of Nov. 27, 2015 16 Business Solutions (Billions of Yen) FY2015 1Q 2Q 1Q to 3Q Accumulated Total Change (Y on Y) Fiscal year Forecast Change (Y on Y) 80.6 91.7 88.8 +3.3% 261.2 +3.6% 360.0 +4.9% 6.8 9.9 7.1 -7.0% 23.8 +1.2% 38.0 +21.4% (8.4%) (10.8%) (8.0%) Sales Operating Income (margin) Change (Y on Y) 3Q (9.1%) (10.6%) *Sales include internal sales between segments FY2015 Fiscal Year Forecast (vs Oct. 30 Forecast) FY2015 3Q Results (Y on Y) • Sales: 3.3% increase • Operating income: 0.5 billion yen decrease • Sales：Upturn by 10 billion yen • Operating income：Upturn by 2 billion yen • Sharp’s MFP caught the early demands for printing services in convenience stores by adopting a program for Japan’s new social security card system. • Expansion of line-up for large displays including 4K 80-inch displays • Aggressive promotions of new businesses, the future key segments; for example, presenting the compact laser MEMS projector module at Wearable Expo in Tokyo Current Measures & Achievements 17 Electronic Components and Devices (Billions of Yen) FY2015 1Q Sales Change (Y on Y) 3Q 1Q to 3Q Accumulated Total Change (Y on Y) Fiscal year Forecast Change (Y on Y) 136.6 114.6 146.4 -10.4% 397.6 +23.1% 530.0 +13.6% 2.8 5.1 1.9 -24.2% 10.0 60.7-fold 18.0 26.6-fold (2.1%) (4.5%) (1.4%) Operating Income (margin) 2Q FY2015 3Q Results (Y on Y) • Sales: 10.4% decrease • Operating income: 0.6 billion yen decrease Current Measures & Achievements (2.5%) (3.4%) *Sales include internal sales between segments FY2015 Fiscal Year Forecast (vs Oct. 30 Forecast) • Sales: No change • Operating income: No change • Establishment of a system for achieving stable profits by improving production efficiency and reducing fixed costs • Shift to high-value-added fields with new devices – Started sales in high potential fields for color night-vision camera – Obtaining new customers of new sensor products for detecting dust, PM2.5, and environmental factors 18 Display Devices (Billions of Yen) FY2015 1Q 2Q 3Q 1Q to 3Q Change (Y on Y) Accumulated Total Change (Y on Y) Fiscal year Forecast Change (Y on Y) Sales 187.8 203.3 226.2 -5.0% 617.4 -11.7% 870.0 -4.1% Operating Income -13.7 -12.7 -10.7 - -37.2 - -30.0 - (-7.3%) (-6.3%) (-4.7%) (margin) (-6.0%) (-3.4%) *Sales include internal sales between segments FY2015 3Q Results (Y on Y) • Sales: 5.0% decrease • Operating income: 22.2 billion yen decrease Current Measures & Achievements FY2015 Fiscal Year Forecast (vs Oct. 30 Forecast) • Sales: No change • Operating income: No change • Shift towards highly profitable business structure to expand business in PC, automotive, and medium-size display fields • Differentiating products from other competitors by one-of-a-kind technology and new product expansion • Expansion of high-value-added panels (curved Free-Form Display won the Minister of Economy, Trade and Industry Award in Good Design Awards) 19 Display Devices Inadequate product appeal and cost competitiveness Sales decline of Smartphone LCDs Progress in Profitability Improvement Measures for FY2015 2H Measures to Improve Earnings in 2H Progress and Prospects • Shift away from omnidirectional customer strategy – Rearrange customer portfolio by focusing resources on priority customers – Strengthen user support system centered on new local sales company in Shenzhen (dedicated support system for each priority customer) （No. of models developed: 1.8 times vs. 1H） • Projects changes due to the Chinese smartphone market change • Focusing the resource to medium-size displays from smartphone panels of highly volatile Chinese manufacturers （No. of models developed in 2H: 1.3 times vs. 1H） • Shift to high-value-added areas centered on medium-size displays, such as notebook PCs and industrial appliances – Enhance lineup of high-resolution, narrow-bezel, low-powerconsumption models （Medium-size LCD sales: 1.6 times vs. 1H） （Market share increase for notebook PCs/Tablets： 1H 14%→2H 25%） • Strong growth in tablets and automotive applications, but stagnant in notebook PCs and game consoles • Strengthen system by shifting resources from smartphone field （Medium-size LCD sales in 2H ：1.3 times vs. 1H)） • Expansion of medium-size displays and advancement of new model developments （Market share increase for notebook PCs/Tablets： 1H 14%→2H 19%) • Implement thorough structural reforms related to costs across entire supply chain （Cost reduction ratio: Double vs. 1H） – Material and processing cost reduction through strategic development and procurement – Implement joint cost-reduction projects with priority users – Strengthen support system for in-cell customers in joint effort with manufacturers of touchscreen controllers （No. of in-cell display equipped models: 4 times vs. 1H） • Cost reduction by generalizing and commonalizing the parts, despite the smartphone orders decline effect. （Cost reduction ratio in 2H : Same as 1H） • Major users newly adapted Sharp’s in-cell display • Accelerating the business of the new competitive in-cell display （No. of in-cell display equipped models in 2H: 3 times vs. 1H） 20 Ⅲ. Supplementary Data 21 Sales and Operating Income by Segment (Billions of Yen) 1H Consumer Electronics FY2015 Sales Fiscal 2H Year Forecast Forecast Change (Y on Y) 1H FY2015 Operating Income Fiscal 2H Change Year Forecast (Y on Y) Forecast 435.5 434.4 870.0 -11.5% Consumer Electronics -1.9 (-0.5%) 21.9 (5.1%) 20.0 (2.3%) +4.8% Energy Solutions 78.7 91.2 170.0 -37.2% Energy Solutions -2.6 (-3.4%) -4.3 (-4.8%) -7.0 (-4.1%) - Business Solutions 172.3 187.6 360.0 +4.9% Business Solutions 16.7 (9.7%) 21.2 (11.3%) 38.0 (10.6%) +21.4% Electronic Components and Devices 251.2 278.7 530.0 +13.6% Electronic Components and Devices 8.0 (3.2%) 9.9 (3.6%) Display Devices 391.2 478.7 870.0 -4.1% -26.4 (-6.8%) -3.5 (-0.7%) -30.0 (-3.4%) - Subtotal 1,329.0 1,470.9 2,800.0 -5.7% -6.3 (-0.5%) 45.3 (3.1%) 39.0 (1.4%) - -49.3 -50.6 -100.0 - -18.8 -10.1 -29.0 1,279.6 1,420.3 2,700.0 -3.1% -25.1 (-2.0%) 35.1 (2.5%) 10.0 (0.4%) Adjustments Total Display Devices Subtotal Adjustments Total 18.0 26.6-fold (3.4%) - *Figures within parentheses indicate operating margin. 22 Quarterly Sales and Operating Income by Segment (Billions of Yen) FY2015 Sales 1Q Consumer Electronics 2Q FY2015 Operating Income 3Q 4Q Forecast 1Q Consumer Electronics 4Q Forecast 2Q 3Q -11.7 (-5.8%) 9.7 (4.2%) 7.5 (3.7%) 14.4 (6.3%) 201.9 233.6 204.2 230.1 Energy Solutions 36.8 41.8 34.5 56.7 Energy Solutions -3.9 (-10.7%) 1.3 (3.2%) -5.0 (-14.7%) 0.7 (1.3%) Business Solutions 80.6 91.7 88.8 98.7 Business Solutions 6.8 (8.4%) 9.9 (10.8%) 7.1 (8.0%) 14.1 (14.3%) Electronic Components and Devices 136.6 114.6 146.4 132.3 Electronic Components and Devices 2.8 (2.1%) 5.1 (4.5%) 1.9 (1.4%) 7.9 (6.0%) Display Devices 187.8 203.3 226.2 252.5 Display Devices -13.7 (-7.3%) -12.7 (-6.3%) -10.7 (-4.7%) 7.2 (2.9%) Subtotal 643.9 685.1 700.3 770.5 Subtotal -19.7 (-3.1%) 13.3 (2.0%) 0.8 (0.1%) 44.4 (5.8%) Adjustments -25.6 -23.7 -36.9 -13.6 Adjustments -9.0 -9.7 -4.7 -5.4 Total 618.3 661.3 663.3 756.9 Total -28.7 (-4.7%) 3.5 (0.5%) -3.8 (-0.6%) 39.0 (5.2%) *Figures within parentheses indicate operating margin. 23 Sales of Main Products (Billions of Yen) FY2014 1H FY2015 Fiscal Year 2H 1H 2H Forecast Fiscal Year Forecast Change (Y on Y) 189.1 180.8 370.0 154.6 155.3 310.0 -16.2% 3.60 3.43 7.03 2.99 2.90 5.90 -16.2% 85.9 107.6 193.6 83.5 76.4 160.0 -17.4% 2.41 3.15 5.56 2.26 1.73 4.00 -28.1% Refrigerators 47.9 45.6 93.5 48.2 48.7 97.0 +3.7% Air Conditioners 42.1 21.3 63.5 36.0 27.9 64.0 +0.7% Copiers / Printers 73.4 78.5 152.0 78.2 81.7 160.0 +5.2% 103.5 235.5 339.1 198.9 231.0 430.0 +26.8% LCD TVs Unit (million units) Mobile Phones Unit (million units) CCD / CMOS Imagers 24 Sales of Main Products by Quarter (Billions of Yen) FY2014 1Q FY2015 3Q 85.7 103.3 104.3 76.5 64.1 90.5 81.8 73.5 1.73 1.86 1.74 1.68 1.41 1.58 1.72 1.17 49.6 36.2 64.1 43.5 44.1 39.4 27.4 48.9 1.23 1.17 1.79 1.35 1.01 1.25 0.54 1.18 Refrigerators 23.9 24.0 22.1 23.4 23.0 25.1 21.1 27.5 Air Conditioners 23.6 18.4 8.0 13.3 20.6 15.3 8.2 19.7 Copiers / Printers 34.3 39.1 38.2 40.3 37.2 40.9 25.0 56.7 CCD / CMOS Imagers 38.8 64.7 129.3 106.2 110.8 88.0 122.5 108.4 LCD TVs Unit (million units) Mobile Phones Unit (million units) 4Q 1Q 2Q 4Q Forecast 2Q 3Q 25 Capital Investment and Depreciation, etc. (Billions of Yen) FY2014 1H FY2015 2H 1H Fiscal Year 2H Forecast Fiscal Year Forecast Change (Y on Y) Capital Investment 31.2 31.3 62.6 20.9 39.0 60.0 -4.2% LCDs 12.9 19.0 31.9 8.9 19.0 28.0 -12.4% 49.9 52.6 102.6 33.7 46.2 80.0 -22.0% 65.8 75.1 141.0 68.6 71.3 140.0 -0.7% Depreciation and Amortization R&D Expenditures (Yen) Exchange Rate FY2014 1H FY2015 2H 1H Fiscal Year 2H Forecast US Dollar 102.05 115.83 108.94 120.80 120.00 Euro 137.41 137.14 137.28 133.57 135.00 26 Capital Investment and Depreciation, etc. by Quarter (Billions of Yen) FY2014 1Q Capital Investment 3Q 4Q 1Q 2Q 4Q Forecast 3Q 14.5 16.6 9.3 22.0 9.7 11.1 8.2 30.8 5.7 7.1 4.3 14.7 3.8 5.1 4.9 14.1 24.4 25.5 26.5 26.0 18.0 15.7 17.0 29.2 34.4 31.4 38.1 37.0 36.3 32.3 33.5 37.8 LCDs Depreciation and Amortization R&D Expenditures 2Q FY2015 (Yen) Exchange Rate FY2014 FY2015 1Q 2Q 3Q 4Q 1Q 2Q 3Q US Dollar 101.16 102.93 113.55 118.10 120.37 121.24 120.51 Euro 138.56 136.26 141.59 132.68 132.66 134.48 131.46 27 Overseas Sales by Region Top: Sales (Billions of yen) Bottom: Composition ratio (%) FY2014 1H 2H FY2015 Fiscal Year 1H 165.6 19.9% 155.2 15.8% 320.9 17.7% 160.0 18.0% 71.4 8.6% 71.0 7.2% 142.5 7.8% 69.9 7.8% China 487.8 58.6% 653.0 66.3% 1,140.8 62.8% 554.3 62.2% Other 107.7 12.9% 105.6 10.7% 213.4 11.7% 106.4 12.0% Total 832.7 100.0% 985.1 100.0% 1,817.8 100.0% 890.7 100.0% The Americas Europe 28