Consolidated Financial Results for the Year Ended March 31, 2013 Ⅰ. Financial Results for Fiscal 2012 Ⅱ. Financing Activities Ⅲ. Financial Results Forecast for Fiscal 2013 Supplementary Data – Sales of Main Products, etc. SHARP CORPORATION May 14, 2013 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 forwardlooking 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 © 2013 SHARP CORPORATION, All Rights Reserved. Ⅰ. Financial Results for Fiscal 2012 1 Financial Results for Fiscal 2012 ・ Sales in 2H improved approx. 270 billion yen compared to 1H ・ Achieved positive results for 2H’s operating income. Exceeded the previous forecast of net sales and operating income ・ On the other hand, there was a negative impact on net income due to the additional business restructuring (Billions of yen) FY2011 Full Year FY2012 1H 2H 3Q 4Q 2,455.8 1,104.1 Operating Income -37.5 -168.8 2.6 (-1.5%) (-15.3%) (0.4%) -36.7 -121.0 -157.7 -376.0 -387.5 (-15.3%) (-35.1%) 696.1 Difference Full Year Difference Change from 1H from previous (Y on Y) Full Year Previous Forecast forecast Net Sales Net Income 678.2 FY2012 1,374.4 +270.2 19.9 22.6 +191.5 (2.9%) (1.6%) (-5.4%) (-17.4%) (-11.5%) 2,478.5 -146.2 +18.5 +0.9% 2,460.0 +8.7 - -155.0 -95.3 - -450.0 (-5.9%) +229.8 -545.3 (-22.0%) Impairment loss / Restructuring charges, etc. 2 Sales by Product Group LCDs and Solar Cells contributed to the sales in 2H, exceeding the previous forecast FY2011 Full Year (Billions of Yen) FY2012 1H 4Q Full Year Previous Forecast Difference Difference Full Year Change from from 1H previous (Y on Y) 2H 3Q FY2012 forecast Audio-Visual and Communication Equipment Health and Environmental Equipment Information Equipment Consumer/Information Products 1,061.0 338.5 202.3 191.6 394.0 +55.4 732.6 -7.3 -31.0% 740.0 292.3 154.9 74.8 79.8 154.6 -0.3 309.6 -0.3 +5.9% 310.0 277.6 139.2 69.7 88.4 158.1 +18.9 297.4 +7.4 +7.1% 290.0 1,630.9 632.8 346.9 359.9 706.9 +74.1 1,339.7 -0.2 -17.9% 1,340.0 LCDs 720.9 367.9 258.2 220.4 478.7 +110.7 846.7 +16.7 +17.4% 830.0 Solar Cells 223.9 93.0 55.9 110.8 166.8 +73.7 259.9 +14.9 +16.1% 245.0 Other Electronic Devices 238.1 125.9 81.4 62.0 143.4 +17.5 269.4 -5.5 +13.2% 275.0 Electronic Components 1,183.0 587.0 395.6 393.4 789.0 +202.0 1,376.1 +26.1 +16.3% 1,350.0 Sub Total 2,814.0 1,219.8 742.6 753.3 1,495.9 +276.1 2,715.8 +25.8 -3.5% 2,690.0 Adjustments -358.1 -115.7 -64.3 -57.2 -121.5 -5.8 -237.2 -7.2 - -230.0 Total 2,455.8 1,104.1 678.2 696.1 1,374.4 +270.2 2,478.5 +18.5 +0.9% 2,460.0 Sales of each product group include internal sales between segments (Consumer/Information Products and Electronic Components) 3 Operating Income by Product Group In 2H, all the product groups excluding LCDs achieved positive results in operating income FY2011 Full Year (Billions of Yen) FY2012 1H Difference Difference Full Year Change from from 1H previous (Y on Y) 2H 3Q FY2012 4Q Full Year Previous Forecast forecast Audio-Visual and Communication Equipment Health and Environmental Equipment Information Equipment Consumer/Information Products -6.1 -21.1 5.3 6.0 11.3 29.4 17.3 27.7 6.9 +32.5 -9.8 7.4 7.3 6.3 11.0 14.8 -2.4 32.2 17.3 +10.4 24.3 -1.8 - -8.0 -0.7 +9.3% 33.0 +3.3 -12.3% 21.0 51.0 3.1 19.1 24.4 43.5 +40.4 46.6 +0.6 -8.5% 46.0 LCDs -42.2 -115.5 -11.7 -11.6 -23.4 +92.1 -138.9 +5.0 - -144.0 Solar Cells -21.9 -12.3 -1.9 9.7 7.8 +20.1 -4.4 +6.5 - -11.0 Other Electronic Devices Electronic Components 9.5 -23.7 3.1 5.0 8.2 +31.9 -15.5 +1.4 - -17.0 -54.6 -151.6 -10.4 3.1 -7.3 +144.2 -159.0 +12.9 - -172.0 -126.0 -3.6 -148.5 8.6 27.5 36.1 +184.7 -112.3 +13.6 - Adjustments -33.8 -20.3 -5.9 -7.5 -13.5 +6.8 -33.9 -4.9 - -29.0 Total -37.5 -168.8 2.6 19.9 22.6 +191.5 -146.2 +8.7 - -155.0 Sub Total 4 Breakdown of FY2012 Operating Income by Product Group (comparison of 1H and 2H) The improvement in LCDs and Other Electronic Devices by restructuring in 1H has made a significant contribution to all-Sharp operating income (Billions of Yen) Consumer/Information Products: ＋40.4 40 Electronic Components: ＋144.2 +31.9 20 0 22.6 +6.8 +20.1 -20 +92.1 -40 -60 -80 -100 -120 +10.4 +32.5 -140 -2.4 -160 -180 -168.8 AudioHealth & Information FY2012 1H Operating Visual and Environmental Equipment Income Communication Equipment Equipment LCDs Solar Cells Other Electronic Devices Adjustments FY2012 2H Operating Income 5 Breakdown of FY2012 Operating Income by Factors (comparison of 1H and 2H) Reduction in fixed costs and assets contributed to the positive result in operating income of 2H Reduction by business restructuring (1H to 2H): Total 134.2 Billion yen (Billions of Yen) 22.6 Increased revenue, etc. +57.2 Reduction of assets +76.9 50 FY2012 2H Operating Income -100 Reduction of fixed costs +57.3 -150 Inventory write-down Decrease in depreciation costs by retirement and impairment of noncurrent assets, etc. -168.8 -200 FY2012 1H Operating Income Cost reduction mainly due to labor cost cuts 6 Extraordinary Items in Other Expenses / Income Taxes, etc Recorded impairment loss and additional restructuring charges in corresponding to changes in the business environment such as the rapid fall of the yen and demand fluctuations in small- and medium-size LCDs (Billions of Yen) FY2011 Full Year Operating Income Other Income(Expenses) FY2012 1H 3Q 4Q FY2012 2H Full Year -37.5 -168.8 2.6 19.9 22.6 -146.2 -200.8 -153.9 -34.9 -131.0 -165.9 -319.9 Difference from previous forecast Full Year Previous Forecast +8.7 -155.0 -6.6 0.0 0.0 -47.3 -47.3 -47.3 -117.1 -98.6 -27.3 -17.3 -44.7 -143.3 Settlement package, etc. -18.8 -15.8 -2.0 -32.3 -34.3 -50.2 Others -58.2 -39.4 -5.5 -33.9 -39.4 -78.9 -137.6 -64.7 -4.5 -9.9 -14.4 -79.1 -115.9 -61.0 0.0 -4.5 -4.5 -65.5 -21.7 -3.6 -4.5 -5.4 -9.9 -13.6 -338.5 -218.6 -39.4 -140.9 -180.3 -399.0 -104.0 -295.0 -376.0 -387.5 -36.7 -121.0 -157.7 -545.3 -95.3 -450.0 Impairment loss Restructuring charges Income Taxes, etc. Reversal of deferred tax assets Others Total Net Income 7 Extraordinary Items in Other Expenses in 4Q FY2012 Almost completed financial procedures of business restructuring ・Impairment Loss Impairment of manufacturing 47.3 Billion Yen equipment in audio-visual / LCD businesses ・Restructuring Charges Loss caused by cancellation of 17.3 Billion Yen lease contracts in solar cells businesses, etc. ・Settlement Package, etc. 32.3 Billion Yen Provision for loss on litigation Main Extraordinary Items 97.0 Billion Yen 8 Consolidated Balance Sheets Equity ratio has decreased to 6.0% (Billions of Yen) FY2011 FY2011 FY2012 End of Mar. End of Sep. End of Dec. End of Mar. 2012 2012 2012 2013 End of Mar. End of Sep. End of Dec. End of Mar. 2012 2012 2012 2013 Cash, time deposits and short-term investments Notes and accounts receivable 195.3 375.4 221.1 410.5 164.0 414.2 191.9 424.2 Inventories 527.4 325.7 339.9 310.7 Other current assets 322.9 301.6 336.8 294.9 1,421.1 1,259.0 1,255.1 1,221.8 Plant and Equipment 872.4 636.6 600.3 563.6 Investments and Other Assets 318.4 323.7 314.8 301.6 Current Assets Commercial paper 351.0 167.5 8.0 0.0 Short-term borrowings 597.9 898.0 899.8 924.1 Notes and accounts payable 436.5 422.2 460.0 405.6 Other current liabilities 356.5 333.9 283.5 337.7 Current Liabilities 1,391.0 1,654.2 1,643.4 1,667.5 577.9 338.3 309.6 285.3 Liabilities 1,969.0 1,992.5 1,953.1 1,952.9 Net Assets Long-term Liabilities Total assets 2,614.1 2,220.4 2,171.2 2,087.7 FY2012 645.1 227.9 218.1 134.8 Total liabilities and net assets 2,614.1 2,220.4 2,171.2 2,087.7 Equity Ratio 23.9% 9.9% 9.6% 6.0% 9 Ⅱ . Financing Activities 10 Financing Activities June 2013 Needs for Finance September 2013 March 2014 Deadline of syndicated Convertible bonds due for loan: redemption: 360 billion yen 200 billion yen Syndicated loan 360 billion yen Straight bond due for redemption: 30 billion yen September 2014 Straight bond due for redemption: 100 billion yen Extension of syndicated loan (until FY2015) 360 billion yen (including unexecuted balance of 50 billion yen) Additional borrowing facility 150 billion yen Sustaining conditions for credit extension 更なる資金・資本政策の実行 Conduct further financing activities Improvement of cash flows by self-reliant efforts 11 Ⅲ. Financial Results Forecast for Fiscal 2013 12 Financial Results Forecast for Fiscal 2013 Aim to achieve positive results for net income of FY2013 (Billions of Yen) FY2013 FY2012 Full Year Net Sales 1H Forecast 2H Forecast Change (Y on Y) Full Year (Forecast) Change (Y on Y) Change (Y on Y) 2,478.5 1,270.0 +15.0% 1,430.0 +4.0% 2,700.0 Domestic 1,007.2 500.0 +9.7% 520.0 -5.7% 1,020.0 +8.9% +1.3% Overseas 1,471.3 770.0 +18.7% 910.0 +10.6% 1,680.0 +14.2% Operating Income -146.2 15.0 - 65.0 +187.2% 80.0 - Net Income -545.3 -20.0 - 25.0 - 5.0 - 13 Transition of Net Sales / Operating Income （by 1H / 2H） Expecting recovery of net sales and operating income in 2H of fiscal 2013 (Billions of Yen) 1,500 (Billions of Yen) 1,374.4 1,314.5 1,141.2 1,430.0 1,270.0 300 1,104.1 1,000 200 500 65.0 33.5 22.6 100 15.0 0 0 -71.1 -500 -100 -168.8 -1,000 1H 2H FY2011 -200 1H 2H FY2012 Net Sales (left) 1H 2H FY2013 (forecast) Operating Income (right) 14 Transition of Net Sales by Quarter Expect temporary weakening of net sales in 1Q of fiscal 2013 due mainly to seasonal factors, but will aim for steady recovery from 2Q (Billions of Yen) 8,000 800 2,700 billion yen 7,000 700 6,000 600 5,000 500 4,000 400 3,000 300 2,000 200 100 1,000 0 1Q 2Q 3Q 4Q 1Q 2Q FY2011 3Q 4Q 1Q FY2012 2Q 3Q 4Q FY2013 (Forecast) 15 Transition of Operating Income by Quarter Expect temporary weakening of operating income in 1Q of fiscal 2013 due to decline of sales, but will aim for steady recovery from 2Q (Billions of Yen) (Operating income ratio:%) 60 12.0 40 6.0 20 0 0.0 1Q -20 2Q 3Q FY2011 4Q 1Q 2Q 3Q FY2012 4Q 1Q 2Q 3Q 4Q FY2013 (Forecast) -6.0 -40 -60 -12.0 -80 -18.0 -100 -120 -24.0 16 Transition of Quarterly Sales by Product Groups (2H of FY2012 to 1H of FY2013) Considerable recovery in Digital Information Equipment and LCD sales from 1Q to 2Q of fiscal 2013 (Billions of Yen) 300 3Q/FY12 4Q/FY12 1Q/FY13 (Forecast) 2Q/FY13 (Forecast) Business Solutions LCDs 250 200 150 100 50 0 Digital Info. Health & Environment Solar Cells Electronic Devices 17 Transition of Operating Income by Product Group (1H of FY2012 to 2H of FY2013, Comparison of Half-Year) Expect negative result on 1H operating income due to a negative impact of the weakened yen on product group sales, but will target for improving profits by increasing sales in LCDs positively affected by the weakened yen and order increase as well, and by recovering sales in product business. (Billions of Yen) 100 FY2013 1H FY2012 2H 50 22.6 FY2013 2H 65.0 15.0 0 -50 -100 -150 -200 -168.8 18 FY2013 Sales by Product Group(1) Product Business Group FY2011 Full Year (Billions of Yen) FY2012 1H FY2013 2H 3Q 4Q Full Year Full Year (Forecast) Change (Yon Y) Digital Information Equipment 1,061.0 338.5 202.3 191.6 394.0 732.6 760.0 +3.7% Health and Environmental Equipment 292.2 154.9 74.8 79.8 154.6 309.6 320.0 +3.3% Solar Cells 223.8 93.0 55.9 110.8 166.8 259.9 280.0 +7.7% Business Solutions 277.5 138.9 69.6 88.3 158.0 296.9 310.0 +4.4% 1,854.8 725.6 402.8 470.6 873.5 1,599.2 1,670.0 +4.4% Product Business Sales of each product group include internal sales between segments (Product Business / Device Business) 19 FY2013 Sales by Product Group(2) Device Business Group / Total Sales FY2011 Full Year FY2012 1H FY2013 2H 3Q 4Q (Billions of Yen) Full Year Full Year (Forecast) Change (Yon Y) LCDs 721.0 368.0 258.2 220.5 478.8 846.8 970.0 +14.5% Electronic Devices 238.1 126.4 82.2 62.0 144.2 270.6 320.0 +18.2% 959.1 494.4 340.4 282.6 623.0 1,117.5 1,290.0 +15.4% Sub Total 2,814.0 1,220.1 743.3 753.2 1,496.6 2,716.7 2,960.0 +9.0% Adjustments -358.1 -115.9 -65.0 -57.1 -122.2 -238.1 -260.0 - Total 2,455.8 1,104.1 678.2 696.1 1,374.4 2,478.5 2,700.0 +8.9% Domestic 1,181.1 455.7 255.9 295.6 551.5 1,007.2 1,020.0 +1.3% Overseas 1,274.6 648.4 422.3 400.5 822.8 1,471.3 1,680.0 +14.2% Device Business Sales of each product group include internal sales between segments (Product Business / Device Business) 20 FY2013 Operating Income by Product Group(1) Product Business Group Above: Operating Income (Billions of Yen) Below: Operating Income Ratio (%) FY2011 FY2012 Full Year 1H 2H 3Q Digital Information Equipment Health and Environmental Equipment Solar Cells Business Solutions Product Business FY2013 Full Year 4Q Full Year (Forecast) -6.1 -21.1 5.3 6.0 11.3 -9.8 12.0 -0.6% -6.3% 2.6% 3.1% 2.9% -1.3% 1.6% 29.4 17.3 7.4 7.3 14.8 32.2 20.0 10.1% 11.2% 10.0% 9.3% 9.6% 10.4% 6.3% -21.9 -12.3 -1.9 9.7 7.8 -4.4 6.0 -9.8% -13.2% -3.4% 8.8% 4.7% -1.7% 2.1% 27.7 6.9 6.3 11.0 17.3 24.3 22.0 10.0% 5.0% 9.1% 12.5% 11.0% 8.2% 7.1% 29.0 -9.1 17.2 34.1 51.3 42.1 60.0 1.6% -1.3% 4.3% 7.3% 5.9% 2.6% 3.6% Difference from previous year +21.8 -12.2 +10.4 -2.3 +17.8 21 FY2013 Operating Income by Product Group(2) Device Business Group, Total Above: Operating Income (Billions of Yen) Below: Operating Income Ratio (%) FY2011 Full Year FY2012 1H 2H 3Q LCDs Electronic Devices Device Business Sub Total Adjustments Total FY2013 Full Year 4Q Full Year (Forecast) -42.2 -115.5 -11.7 -11.6 -23.4 -138.9 30.0 -5.9% -31.4% -4.6% -5.3% -4.9% -16.4% 3.1% Difference from previous year +168.9 9.5 -23.7 3.1 5.0 8.2 -15.5 12.0 4.0% -18.8% 3.9% 8.2% 5.7% -5.7% 3.8% +27.5 -32.7 -139.3 -8.5 -6.6 -15.1 -154.5 42.0 -3.4% -28.2% -2.5% -2.3% -2.4% -13.8% 3.3% -3.6 -148.5 8.6 27.5 36.1 -112.3 102.0 -0.1% -12.2% 1.2% 3.7% 2.4% -4.1% 3.4% -33.8 -20.3 -5.9 -7.5 -13.5 -33.9 -22.0 +11.9 -37.5 -168.8 2.6 19.9 22.6 -146.2 80.0 +226.2 -1.5% -15.3% 0.4% 2.9% 1.6% -5.9% 3.0% +196.5 +214.3 22 Breakdown of FY2013 Operating Income Forecast by Factors (comparison of FY2012 and FY2013) Improvement of operating income by business restructuring effort in FY2012 (Billions of Yen) 80.0 80 Increased revenue, etc. +89.0 40 -80 Reduction of fixed costs +67.8 -120 -160 FY2013 Operating Income (Forecast) Reduction of assets +69.4 -40 -146.2 FY2012 Operating Income Reduction of fixed costs mainly due to reduction in labor costs Inventory write-down Decrease in depreciation costs by retirement and impairment of noncurrent assets 23 Transition of Other Income (Expenses) / Income Taxes, etc (comparison of 1H and 2H) Almost completed financial procedures of business restructuring within fiscal 2012 (Billions of Yen) FY2010 FY2011 FY2012 FY2013 (forecast) 24 Cleanup of Balance Sheet (Net Assets Section) Decreased capital for restoring fiscal health and exercising agile capital policy No impact of this account classification process on total amount of net assets, total number of issued shares, etc. (Billions of Yen) 500 (Non-Consolidated) 400 Common Stock 300 212.3 200 Capital Surplus (Consolidated) 276.1 Net Assets 134.8 100 0 -100 -200 Treasury Stock, etc. -9.3 Retained Earnings (Consolidated) (Non-Consolidated) Net Assets 50.0 134.8 24.0 -9.3 Offset of retained earnings (retained loss) with common stock and capital surplus. -414.4 -300 -400 -500 FY2012 13/3月期 Decreased Capital 減資後 25 Enforcing Organization and Governance Structure Measures １ Introduction of Business Group System ２ ３ Actions ■ Transformation into a one-stop quick responding organization from the customers’ viewpoint ■ Thorough and precise management based on business characteristics Introducing Corporate Management Group and Structural Reform Group ■ Strengthening headquarters control / governance function ■ Strengthening action forces to complete the mediumterm management plan Management Participation from 2 Main Banks ■ Strengthening management reconstruction together with 2 main banks 26 <Supplementary Data> - Sales of Main Products and Components - Overseas Sales by Region - Other Information 27 Sales of Main Products and Electronic Components (Billions of Yen) FY2011 Full Year LCD Color TVs Unit (million units) Mobile Phones FY2012 1H 2H FY2013 Full Year Change (Y on Y) Full Year Forecast Change (Y on Y) 581.3 185.7 202.7 388.4 -33.2% 400.0 +3.0% 12.29 3.89 4.13 8.03 -34.7% 8.00 -0.4% 305.8 98.3 131.3 229.6 -24.9% 240.0 +4.5% Unit (million units) 7.70 2.73 3.37 6.11 -20.7% 6.80 +11.3% Refrigerators 83.1 45.1 42.7 87.9 +5.7% 96.0 +9.1% Air Conditioners 53.5 35.8 23.8 59.6 +11.4% 62.0 +3.9% Solar Cells 223.9 93.0 166.8 259.9 +16.1% 280.0 +7.7% 1,073 542 777 1,319 +22.9% 1,600 +21.3% Copiers / Printers 114.2 56.3 72.1 128.4 +12.4% 140.0 +9.0% CCD / CMOS Imagers 97.5 66.7 86.7 153.5 +57.4% 190.0 +23.8% Volume (MW) 28 Overseas Sales by Region Above: Sales (Billions of Yen) Below: Composition Ratio FY2011 FY2012 Full Year 1H 2H Result Result Result FY2013 Full Year Result 288.3 146.9 208.3 355.2 22.6% 22.6% 25.3% 24.1% Y on Y +23.2% Full Year Forecast Y on Y 360.0 +1.3% The Americas 282.6 91.9 82.4 174.3 22.2% 14.2% 10.0% 11.9% 21.4% -38.3% 170.0 -2.5% Europe 483.2 278.7 389.1 667.9 37.9% 43.0% 47.3% 45.4% 220.3 130.8 142.9 273.7 10.1% +38.2% 820.0 +22.8% China 48.8% +24.2% 330.0 +15.4% 1,680.0 +20.6% Other 17.3% 20.2% 17.4% 18.6% 1,274.6 648.4 822.8 1,471.3 100.0% 100.0% 100.0% 100.0% 19.7% +14.2% Total 100.0% 29 Other Information FY2011 Full Year Capital Investment (Billions of Yen) FY2012 1H 2H FY2013 Full Year Change (Y on Y) Full Year Forecast Change (Y on Y) 118.8 55.0 27.3 82.4 -30.6% 80.0 -3.0% 75.1 36.9 9.0 46.0 -38.7% 27.0 -41.4% Depreciation and Amortization 238.9 92.6 80.7 173.3 -27.4% 130.0 -25.0% R&D Expenditures 154.7 74.3 63.5 137.9 -10.9% 160.0 +16.0% U.S. Dollar ¥ 78.09 ¥ 78.42 ¥ 85.80 ¥ 82.11 ¥ 95.00 Euro ¥ 107.48 ¥ 99.14 ¥ 112.15 ¥ 105.65 ¥ 125.00 End of Mar. 2012 End of Mar. 2013 55,580 56,756 50,429 29,895 29,387 24,680 25,685 27,369 25,749 〈Reference〉LCDs*1 Exchange Rate End of Mar. 2011 Number of Employees*2 Domestic Overseas 本資料の数値はダミーです *1 *2 Sharp Corporation (Sharp Corporation and Sharp Display Products Corporation until 1Q FY2012) Sharp Corporation and its consolidated 2013/5/17 subsidiary companies 30 31