Consolidated Financial Results for the Third Quarter Fiscal 2013 Ⅰ. Financial Results for the Third Quarter Fiscal 2013, Financial Results Forecast for Fiscal 2013 Ⅱ. Information by Product Group Ⅲ. Supplementary Data SHARP CORPORATION February 4, 2014 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 R l i suchh as trade d restrictions i i in i other h countries i (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 © 2014 SHARP CORPORATION, All Rights Reserved. Ⅰ. Financial Results for the Third Quarter Fiscal 2013, Financial Results Forecast for Fiscal 2013 1 Financial Results for the Third Quarter ・ In 3Q, net sales, operating income, and net income increased drastically over the previous quarter and the same period last year. (Billions of Yen) FY2012 3Q 1Q to 3Q Accumulated Total FY2013 1Q 2Q 3Q Change (Q on Q) Difference (Q on Q) 1Q to 3Q Accumulated Total Change (Y on Y) Change (Y on Y) Net Sales 678.2 1,782.4 607.9 734.1 815.2 +11.1% +81.1 +20.2% 2,157.2 +21.0% Operating Income 2.6 (0.4%) -166.2 (-9.3%) 3.0 (0.5%) 30.8 (4.2%) 47.6 (5.8%) +54.7% +16.8 17.9-fold 81.4 (3.8%) - -36.7 -424.3 (-5.4%) (-23.8%) -17.9 (-3.0%) 13.6 (1.9%) 22.0 (2.7%) +61.6% 17.7 (0.8%) - Net Income +8.4 - 2 Transitions in Net Sales/Operating Income/Net Income by Quarter ・ Quarterly net sales have been improved to the 800 billion yen level. ・ Operating income and net income have recovered since the lows of 1Q and 2Q FY2012. ・ Operating income has stayed in the black for 5 consecutive quarters. Net Sales 900 Operating Income (Billions of Yen) 800 Net Income (Billions of Yen, %) 60 15 0 15.0 40 10.0 20 5.0 (Billions of Yen) 50 0 700 -50 600 0 0.0 -100 500 -20 -5.0 -40 40 -10 10.0 0 -60 -15.0 400 -150 300 -200 200 100 -80 0 -100 -20.0 -250 Operating Income Operating Margin -25.0 -300 3 Financial Results Forecast for Fiscal 2013 ・ Net sales increased 200 billion yen over the previous forecast to 2.9 trillion yen, and operating income was revised upward by 20 billion yen to 100 billion yen. ・ Net income for the period remain unchanged from the previous forecast due to increase in other expenses such as interest expenses, exchange rate loss with depreciation of currencies in emerging countries, and costs associated with financial arrangements. (Billions of Yen) FY2013 Full Year Previous Forecast Full Year Revised Forecast Difference from Previous Forecast Changed Amount Ratio of Change 2,700.0 2,900.0 +200.0 +7.4% Operating Income 80.0 100.0 +20.0 +25.0% Other Income (Expenses), Income Taxes, etc. -75.0 -95.0 -20.0 - 5.0 5.0 0.0 - Net Sales Net Income 4 Sales by Product Group ・ 2-digit growth for Digital Information Equipment, Solar Cells and Electronic Devices compared to the previous period. ・ Growth in all product groups when compared with the same period last year. FY2012 3Q Digital Information Equipment (Billions of Yen) FY2013 1Q 2Q Change (Q on Q) 3Q Difference (Q on Q) Change (Y on Y) 202.3 158.9 175.6 216.9 +23.5% +41.3 +7.2% Health and Environmental Equipment 74.8 82.3 77.5 82.1 +5.8% +4.5 +9.7% Solar Cells 55.9 84.3 83.9 108.5 +29.4% +24.6 +94.1% Business Solutions 69.6 77.6 80.7 77.1 -4.5% -3.6 +10.7% 402.8 403.3 417.9 484.7 +16.0% +66.8 +20.3% LCDs 258.2 193.8 284.7 277.5 -2.5% -7.2 +7.5% Electronic Devices 82.2 61.2 86.5 106.4 +23.0% +19.8 +29.5% Device Business 340.4 255.0 371.3 384.0 +3.4% +12.6 +12.8% Sub Total 743.3 658.3 789.2 868.7 +10.1% +79.5 +16.9% Product Business Adjustments -65.0 -50.4 -55.1 -53.4 - +1.6 - Total 678.2 607.9 734.1 815.2 +11.1% +81.1 +20.2% *Sales of each product group include internal sales between segments (Product Business / Device Business) 5 Operating Income by Product Group ・ In 3Q, all product groups were in the black following 2Q. (Billions of Yen) FY2012 3Q Digital Information Equipment Health and Environmental Equipment Solar Cells Business Solutions Product Business LCDs Electronic Devices Device Business Sub Total Adjustments Total FY2013 1Q 2Q 3Q Change (Q on Q) Difference (Q on Q) Change (Y on Y) 5.3 (2.6%) (2 6%) -1.3 ((-0.9%) 0 9%) 2.2 (1.3%) (1 3%) 8.4 (3.9%) (3 9%) 3.8-fold +6.2 +59.4% 7.4 (10.0%) -1.9 (-3.4%) 6.3 (9.1%) 17.2 (4.3%) -11.7 ((-4.6%)) 3.1 (3.9%) -8.5 (-2.5%) 8.6 (1.2%) -5.9 2.6 (0.4%) 6.4 (7.8%) 6.8 (8.1%) 7.5 (9.8%) 19.4 (4.8%) -9.5 ((-4.9%)) 0.1 (0.2%) -9.3 (-3.7%) 10.0 (1.5%) -7.0 3.0 (0.5%) 3.2 (4.2%) 3.0 (3.7%) 8.3 (10.3%) 16.8 (4.0%) 18.1 ((6.4%)) 5.1 (5.9%) 23.3 (6.3%) 40.1 (5.1%) -9.3 30.8 (4.2%) 5.6 (6.9%) 5.9 (5.5%) 6.1 (8.0%) 26.2 (5.4%) 26.0 ((9.4%)) 4.2 (4.0%) 30.2 (7.9%) 56.4 (6.5%) -8.8 47.6 (5.8%) +75.4% +2.4 -23.9% +93.7% +2.8 - -26.3% -2.1 -3.0% +55.7% +9.4 +52.5% +43.1% +7.8 - -18.0% -0.9 +32.5% +29.6% +6.9 - +40.6% +16.3 6.5-fold +54.7% +0.5 +16.8 17.9-fold *The percentage figures noted in brackets show operating margin 6 Breakdown of Operating Income by Product Group (comparison of 2Q and 3Q) Product Business: +9.4 (Billions of Yen) Device Business: +6.9 50 47.6 +0.5 +7.8 -0.9 09 LCDs Electronic Devices +2.8 +2.4 30.8 0 -2.1 +6.2 2Q Digital Health and Operating Information Environmental Income Equipment Equipment Solar Cells Business Solutions Adjustments 3Q Operating Income 7 Other Income (Expenses) ・ No restructuring charges were recorded, although interest expense increased compared to 3Q FY2012. (Billions of Yen) FY2012 3Q Operating Income Other Income (Expenses) Gain on sales of noncurrent assets Gain on sales of investment securities FY2013 1Q 2Q 3Q Difference Diff (Y on Y) 2.6 -34.9 0.0 3.0 -16.8 0.0 30.8 -12.1 2.9 47.6 -15.0 0.0 +44.9 +19.8 0.0 0.0 0.0 0.0 1.5 0.0 Interest expense -3.7 -4.2 -4.7 -5.8 -2.1 Loss on sales and retirement of noncurrent assets Loss on valuation of investment securities -0.5 -0.1 -1.0 -0.3 +0.2 -0.4 0.0 -0.9 -1.3 -0.9 -27.3 -2.0 0.0 -0.7 -4.5 -36.7 0.0 0.0 -1.0 -11.5 -4.1 -17.9 0.0 0.0 0.0 -10.0 -5.0 13.6 0.0 0.0 0.0 -7.4 -10.5 22.0 +27.3 +1.9 0.0 -6.6 -6.0 +58.8 Restructuring charges Settlement package Provision for loss on litigation Others Income Taxes, etc. Net Income 8 Implementation State of Measures to Reinforce Business Foundations <Reducing Fixed Costs by Reformation of Cost Structure> ・Reduction in fixed costs of 97.6 billion yen compared to FY2012 1Q to 3Q (9 months) due to a reduction in depreciation and amortization and in labor costs <Capital Reinforcement Measures> ・A total of 120.3 billion yen capital increase through a public offering and secondary offering ff i due d to t over-allotment ll t t (October, (O t b November N b 2013) ・A total of 17.4 billion yen capital increase through third-party allotments to Denso, Makita and LIXIL (October 2013) 9 Breakdown of Operating Income by Factors (Y on Y comparison of 1Q to 3Q 9-month accumulated total) Effects of business restructuring: total of 166.5 (Billions of Yen) 81.4 50 Increased revenue, etc. +81.1 0 Reduction of assets +68.9 -50 -100 Reduction of fixed costs +97.6 -150 -166.2 -200 FY2012 1Q to 3Q Operating Income Accumulated Total FY2013 1Q to 3Q Operating Income Accumulated Total 10 Consolidated Balance Sheets ・ The balance of cash and time deposits increased to 318.5 billion yen due to capital increase through a public offering and third-party allotments. ・ The equity ratio has improved from 6.0% at end of March 2013 to 13.1% at end of December 2013. FY2012 FY2012 FY2013 End of Mar. 2013 End of Sep. 2013 FY2013 End of Mar. 2013 End of Dec. 2013 Cash, time deposits and restricted cash 191.9 167.5 318.5 Notes and accounts receivable 558.2 608.0 711.5 Inventories 310.7 317.5 Other current assets 160.9 CB (Billions of Yen) End of Sep. 2013 End of Dec. 2013 200.3 0.0 0.0 Short-term borrowings 924.1 874.0 899.3 342.1 Notes and accounts payable 405.6 449.3 483.7 189.9 177.2 Other current liabilities 337.7 289.6 339.8 1,221.8 1,282.9 1,549.4 1,667.5 1,613.0 1,722.9 Plant and Equipment 563.6 535.2 530.7 Long-term Liabilities 285.3 355.9 356.5 Investments and Other Assets 301.6 297.1 326.0 Liabilities 1,952.9 1,968.9 2,079.4 0.6 0.1 0.1 Net Assets 134.8 146.6 326.8 2,087.7 2,115.5 2,406.3 6.0% 6.4% 13.1% Current Assets Deferred Assets Total assets 2,087.7 2,115.5 Current Liabilities Total liabilities and net assets 2,406.3 Equity Ratio 11 “Asset Light” Approach [ Transition of Inventory ] ・ Inventory at end Dec. 2013 was 342.1 billion yen, an increase of 24.5 billion yen compared to end Sep. 2013, and the ratio vs. monthly sales were relatively flat at 1.43 months. (Billions of Yen) 600 (Months) 3.00 Inventory (left) Ratio vs. monthly sales (right) 500 486.0 2.50 454.4 399.9 400 300 527.4 2.58 411.2 1.93 2.00 356.2 1.60 1.69 1.79 310.7 1.76 1.50 317.5 1.42 342.1 1.43 1.50 200 1.00 100 0.50 0 0.00 End Mar. 2008 End Mar. 2009 End Mar. 2010 End Mar. 2011 End Mar. 2012 End Mar. 2013 End Jun. 2013 End Sep. 2013 End Dec. 2013 12 Transition of Interest-bearing Debt ・ Interest-bearing debt at end Dec. 2013 was 1,219.8 billion yen, an increase of 24.5 billion yen compared to end Sep. 2013, and the ratio vs. monthly sales decreased to 5.09 months from 5.34 months. ・ Net interest-bearing debt *decreased to 901.3 billion yen due to an increase in cash and time deposits following capital increase through a public offering and third-party allotments. (Months) (Billions of Yen) Short-term borrowings (left) 1 127 1 1,127.1 Longt-term debt (left) Ratio vs. monthly sales (right) 1,000 931.8 829.7 820.1 1,174.4 982.4 1,169.4 1,014.8 1,195.3 1,219.8 1,027.8 901.3 847.2 8.00 703.9 629.3 Interestbearing debt 5.51 492.8 500 315.1 2.47 5.77 5.34 471.7 3.57 3.50 5.69 Net interestbearing debt 5.09 4.00 3.36 Interest-bearing debt on the ratio vs. monthly sales 0 0.00 End Mar. 2008 End Mar. 2009 End Mar. 2010 End Mar. 2011 End Mar. 2012 End Mar. 2013 End Jun. 2013 End Sep. 2013 End Dec. 2013 *Net interest-bearing debt = interest-bearing debt ― cash, time deposits and restricted cash 13 Ⅱ. Information by Product Group 14 Digital Information Equipment <Total> (Billions of Yen) FY2013 1Q Sales 2Q 158.9 Operating Income (margin) 3Q 175.6 -1.3 2.2 (-0.9%) (1.3%) Change g Change g (Q on Q) (Y on Y) 216.9 +23.5% +7.2% 4Q Revised Forecast 178.4 -17.7% -6.9% -1.3 - - 8.4 3.8-fold +59.4% (3.9%) Full Full Year Year Previous Change g Change g Revised Change g (Q on Q) (Y on Y) Forecast (Y on Y) Forecast (-0.8%) 730.0 -0.4% 8.0 - (1.1%) 730.0 5.0 (0.7%) *Sales of each product group include internal sales between segments (Product Business / Device Business) [ 3Q ] ・In I addition dditi tto growth th iin units it and d amountt off LCD TV TVs, th the effects ff t off th the release l off new mobile bil phones h and d other factors ensured that 3Q remained in the black, making drastic improvements to profitability on the back of 2Q [ Onward Actions ] ・While profitability is forecast to reduce in 4Q due to decrease in sales of mobile phones following seasonal fluctuations, it is expected to be in the black for the full year 15 Digital Information Equipment <LCD TVs, Mobile Phones> (Billions of Yen: Millions of Units) FY2013 1Q 2Q 3Q Full Full 4Q Year Year Revised Revised Change Previous Change Change Forecast o ec s Change Change Forecastt (Y on Y) Forecast F (Q on Q) (Y on Y) (Q on Q) (Y on Y) F Amt 80.3 113.7 118.8 Unit 1.56 2.12 2.18 +2.5% Amt 50.2 37.2 69.2 +85.8% Unit 1.31 1.11 +4.5% +13.0% 107.0 -9.9% +9.8% 420.0 +8.1% 400.0 -2.3% 2.12 -2.5% +11.9% 8.00 -0.4% 8.00 +6.7% 53.2 -23.1% -19.9% 210.0 -8.5% 210.0 1.77 +59.6% +13.0% 1.29 -27.2% -28.3% 5.50 -10.0% 5.50 LCD TVs Mobile Phones [ 3Q ] LCD TVs: Growth in units and amount from 2Q mainly in Japan where the market bottomed out Mobile phones: Growth in units and amount due to sales of new products [ Onward Actions ] LCD TVs: Increase the sales of high-definition LCD TVs such as 4K AQUOS and Quattron Pro, enhance the lineup of 60 inch and larger (70/80/90 inch) models, and introduce locally suitable products in emerging countries and other important regions Mobile phones: Enhance the lineup centering on new products equipped with IGZO LCDs that feature high definition and low power consumption 16 Health and Environmental Equipment (Billions of Yen) FY2013 1Q Sales 82.3 Operating Income (margin) 2Q 3Q 77.5 6.4 3.2 (7.8%) (4.2%) 82.1 Change g Change g (Q on Q) (Y on Y) +5.8% +9.7% 5.6 +75.4% -23.9% (6.9%) 4Q Revised Forecast Full Full Year Year Revised Change Previous Change g Change g g (Q on Q) (Y on Y) Forecast (Y on Y) Forecast 78.0 -5.0% -2.2% 4.6 -18.5% -37.2% (5.9%) 320.0 +3.3% 20.0 -37.9% (6.3%) 320.0 20.0 (6.3%) *Sales of each product group include internal sales between segments (Product Business / Device Business) [ 3Q ] ・ Strong sales of air purifiers following PM2.5 issues, and growth in microwave ovens and other products [ Onward Actions ] ・ Release highly functional products with unique features, and minimize the influence of exchange rate fluctuations by promoting local production for local consumption ・ Positive sales expansion in anticipation of last-minute demand in the Japanese market before rise in consumption tax, and creation of products that trigger new demand in preparation for the backlash 17 Solar Cells (Billions of Yen) FY2013 1Q Sales Volume (MW) Operating Income (margin) 2Q 3Q 84.3 83.9 343 560 6.8 3.0 (8.1%) (3.7%) Change Change (Q on Q) ((Y on Y)) 108.5 +29.4% +94.1% 459 -18.1% +67.4% 5.9 +93.7% (5.5%) - 4Q Revised Forecast Full Full Year Year Change Change Revised Change Previous (Q on Q) ((Y on Y)) Forecast ((Y on Y)) Forecast 153.1 +41.0% +38.1% 430.0 +65.4% 310.0 738 +60.8% +46.7% 2,100 +59.2% 1,800 8.1 +37.2% (5.3%) -16.2% 24.0 - (5.6%) 13.0 (4.2%) *Sales of each product group include internal sales between segments (Product Business / Device Business) [ 3Q ] ・ Continued C ti d strong t sales l in i the th Japanese J market k t ffor industrial i d t i l applications li ti such h as mega-solar l power generation ti ・ Developer business contributing to increased sales overseas [ Onward Actions ] ・ Expand sales and secure profitability in the Japanese market that has steady demand, expand on the developer businesses overseas Residential use: Strengthen sales with improved after-sales services including maintenance Industrial use: Complete construction through more superior product supply system and construction system, and secure new projects by strengthening design and sales activities ・ Promotion of restructuring including termination of module production in US and UK, shift to energy solution business 18 Business Solutions (Billions of Yen) FY2013 1Q Sales 77.6 Operating Income (margin) 2Q 3Q 80.7 77.1 7.5 8.3 6.1 (9.8%) (10.3%) (8.0%) Change g Change g (Q on Q) (Y on Y) 4Q Revised Forecast -4.5% +10.7% -26.3% -3.0% Full Full Year Year Revised Change Previous Change g Change g g (Q on Q) (Y on Y) Forecast (Y on Y) Forecast 74.4 -3.5% -15.7% 5.9 -3.5% -46.3% (8.0%) 310.0 +4.4% 28.0 +15.0% (9.0%) 310.0 22.0 (7.1%) *Sales of each product group include internal sales between segments (Product Business / Device Business) [ 3Q ] ・ The Th margin i h has d decreased dd due tto seasonall ffactors, t ttougher h competition titi and d other th ffactors, t h however still till secure stable profitability [ Onward Actions ] ・ Increase sales of high-speed MFPs in developed countries and expand color MFPs in emerging countries ・ New customer approach combining MFPs and displays, and enhancement of package solution 19 LCDs (Billions of Yen) FY2013 1Q Sales Operating Income (margin) 2Q 193.8 284.7 -9.5 18.1 (-4.9%) (6.4%) 3Q 277.5 Change g Change g (Q on Q) (Y on Y) 4Q Revised Forecast -2.5% +7.5% 243.9 26.0 +43.1% - 5.3 (9.4%) (2.2%) Full Full Year Year Revised Change Previous Change g Change g g (Q on Q) (Y on Y) Forecast (Y on Y) Forecast -12.1% +10.6% -79.6% - 1,000.0 +18.1% 40.0 (4.0%) - 970.0 30.0 (3.1%) *Sales of each product group include internal sales between segments (Product Business / Device Business) [ 3Q ] ・ Decrease D iin sales l compared d tto 2Q 2Q, due d to t price i decline d li in i large-size l i LCDs LCD d despite it growth th iin sales l off smallll and d medium-size LCDs centering on smartphone application ・ Engineering businesses related to patents, etc. contributed to significant increase in operating income ・ LCD plant operating ratio progressed as per plans, and the small- and medium-size LCD production ratio at the Kameyama No.2 Plant was approximately 30% [ Onward Actions ] ・ Develop new customers with positive progress with design-in activities ・ Strengthen sales of small- and medium-size LCDs featuring high definition and low power consumption, such as IGZO LCDs 20 Electronic Devices (Billions of Yen) FY2013 1Q Sales Operating Income (margin) 2Q 61.2 3Q 86.5 Change g Change g (Q on Q) (Y on Y) 106.4 +23.0% +29.5% 0.1 5.1 4.2 (0.2%) (5.9%) (4.0%) -18.0% +32.5% 4Q Revised Forecast 85.6 2.5 Full Full Year Year Revised Change Previous Change g Change g g (Q on Q) (Y on Y) Forecast (Y on Y) Forecast -19.5% +38.1% -39.7% -49.8% (3.0%) 340.0 +25.6% 12.0 (3.5%) - 320.0 12.0 (3.8%) *Sales of each product group include internal sales between segments (Product Business / Device Business) [ 3Q ] ・ Strong sales of camera modules for mobile devices [ Onward Actions ] ・ Expand the customer base by developing smaller, highly functional camera modules for mobile devices ・ Bolster sales of our strong devices such as proximity sensors with light sensors for mobile devices ・ Better application development of sensing devices to be applied in monitoring (security), in-vehicle and medical fields ・ Bolster sales of touchscreen systems for mobile devices 21 III. Supplementary Data 22 Consolidated Financial Results Forecast for Fiscal 2013 (Billions of Yen) FY2013 1Q 2Q 3Q 1Q to 3Q Accumulated Total FY2013 4Q Revised Forecast Full Year Revised Forecast Difference from Previous Forecast Changed Ratio of Amount Change Full Year Previous Forecast 607.9 734.1 815.2 2,157.2 742.7 2,900.0 +200.0 +7.4% 2,700.0 Domestic 258.8 285.5 296.2 840.5 279.4 1,120.0 +100.0 +9.8% 1,020.0 Overseas 349.1 448.5 519.0 1,316.7 463.2 1,780.0 +100.0 +6.0% 1,680.0 3.0 30.8 47.6 81.4 18.5 100.0 +20.0 +25.0% 80.0 -17.9 13.6 22.0 17.7 -12.7 5.0 0.0 - 5.0 Net Sales Operating Income Net Income 23 Consolidated Financial Results Forecast for Fiscal 2013 (Billions of Yen) FY2013 1Q 2Q 3Q 1Q to 3Q Accumulated Total FY2013 4Q Revised Forecast Full F ll Year Y Revised Forecast Difference ff from f Previous Forecast Changed Amount Ratio of Change Full F ll Year Y Previous Forecast Capital Investment 10.5 10.9 11.2 32.7 37.2 70.0 -10.0 -12.5% 80.0 Depreciation and Amortization 29.9 28.7 27.7 86.4 33.5 120.0 -10.0 -7.7% 130.0 Exchange Rate FY2012 Full Year 3Q 1Q to 3Q Average Full Year Revised Forecast U.S. Dollar ¥82.11 ¥99.46 ¥98.39 ¥100.00 Euro ¥105.65 ¥135.20 ¥130.74 ¥130.00 24 Sales by Product Group Fiscal 2013 Full Year (Billions of Yen) FY2013 1Q Digital Information Equipment 2Q FY2013 1Q to 3Q Accumulated Total 3Q 4Q Revised Forecast Full Year Revised Forecast Difference from Previous Forecast Full Year Previous Forecast 158.9 175.6 216.9 551.5 178.4 730.0 0.0 730.0 Health and Environmental Equipment 82.3 77.5 82.1 241.9 78.0 320.0 0.0 320.0 Solar Cells 84.3 83.9 108.5 276.8 153.1 430.0 +120.0 310.0 Business Solutions 77.6 80.7 77.1 235.5 74.4 310.0 0.0 310.0 403.3 417.9 484.7 1,305.9 484.0 1,790.0 +120.0 1,670.0 LCDs 193.8 284.7 277.5 756.1 243.9 1,000.0 +30.0 970.0 Electronic Devices 61.2 86.5 106.4 254.3 85.6 340.0 +20.0 320.0 Device Business 255.0 371.3 384.0 1,010.4 329.5 1,340.0 +50.0 1,290.0 Sub Total 658.3 789.2 868.7 2,316.3 813.6 3,130.0 +170.0 2,960.0 Adjustments -50.4 -55.1 -53.4 -159.1 -70.8 -230.0 +30.0 -260.0 607.9 734.1 815.2 2,157.2 742.7 2,900.0 +200.0 2,700.0 Product Business Total *Sales of each product group include internal sales between segments (Product Business / Device Business) 25 Operating Income by Product Group Fiscal 2013 Full Year (Billions of Yen) FY2013 1Q 2Q 3Q FY2013 1Q to 3Q Accumulated Total 4Q Revised Forecast Full Year Revised Forecast Difference from Previous Forecast Full Year Previous Forecast Digital Information Equipment -1.3 (-0.9%) 2.2 (1.3%) 8.4 (3.9%) 9.3 (1.7%) -1.3 (-0.8%) 8.0 (1.1%) +3.0 5.0 (0.7%) Health and Environmental Equipment 64 6.4 (7.8%) 6.8 (8.1%) 32 3.2 (4.2%) 3.0 (3.7%) 56 5.6 (6.9%) 5.9 (5.5%) 15 3 15.3 (6.3%) 15.8 (5.7%) 46 4.6 (5.9%) 8.1 (5.3%) 20 0 20.0 (6.3%) 24.0 (5.6%) 00 0.0 20 0 20.0 (6.3%) 13.0 (4.2%) 7.5 (9.8%) 19.4 (4.8%) -9.5 (-4.9%) 8.3 (10.3%) 16.8 (4.0%) 18.1 (6.4%) 6.1 (8.0%) 26.2 (5.4%) 26.0 (9.4%) 22.0 (9.4%) 62.6 (4.8%) 34.6 (4.6%) 5.9 (8.0%) 17.3 (3.6%) 5.3 (2.2%) 28.0 (9.0%) 80.0 (4.5%) 40.0 (4.0%) 0.1 (0.2%) -9.3 (-3.7%) 5.1 (5.9%) 23.3 (6.3%) 4.2 (4.0%) 30.2 (7.9%) 9.4 (3.7%) 44.1 (4.4%) 2.5 (3.0%) 7.8 (2.4%) 12.0 (3.5%) 52.0 (3.9%) 10.0 (1.5%) -7.0 3.0 (0.5%) 40.1 (5.1%) -9.3 30.8 (4.2%) 56.4 (6.5%) -8.8 47.6 (5.8%) 106.7 (4.6%) -25.2 81.4 (3.8%) 25.2 (3.1%) -6.7 18.5 (2.5%) 132.0 (4.2%) -32.0 100.0 (3.4%) Solar Cells Business Solutions Product Business LCDs Electronic Devices Device Business Sub Total Adjustments Total +11.0 +6.0 +20.0 +10.0 0.0 +10.0 +30.0 -10.0 +20.0 22.0 (7.1%) 60.0 (3.6%) 30.0 (3.1%) 12.0 (3.8%) 42.0 (3.3%) 102.0 (3.4%) -22.0 80.0 (3.0%) *The percentage figures noted in brackets show operating margin 26