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<Quarterly Financial Review (Third Quarter of Fiscal Year 2005)>
Net Sales by Product Group
Note: Sales by Product Group include internal sales between segments (Consumer/Information Products and Electronic Components). Starting from this period, in accordance with structure change, the IC group was renamed the LSI group and some items previously included in the IC group were allocated to the Other Electronic Component group. Accordingly, results of the three months ended December 31, 2004 and results of the nine months ended December 31, 2004 have been reclassified.

Please refer to Supplementary Data (PDF: 141KB).
(1)Consumer/Information Products
Sales of Audio-Visual and Communication Equipment were 314.0 billion yen, up 13.8% over the same period last year, reflecting increased sales of LCD TVs and mobile phones.
Sales of LCD TVs were 132.5 billion yen, up 37%, and on a unit basis, 1.22 million units, up 49%, both over the same period last year. Sales of large-size models continued to grow, with models 30 inches and larger accounting for more than 40% of total LCD TV sales, compared to 23% for the same period last year. Prices for LCD TVs dropped by around 30% compared to a year ago, and this downward price trend continued during year-end sales. Nevertheless, rise in the percentage of large-size models, as well as solid sales of full high-definition models, contributed to 2 % increase of Sharp’s average selling price compared to the first half of the fiscal year (April to September).
Total unit sales for the nine months ended December 31, 2005, were 2.95 million units, an increase of 53% over the same period last year. For fiscal 2005 as a whole, sales are projected to be 4.00 million units.

Sales of mobile phones were 113.7 billion yen, up 11%, and on a unit basis, 3.00 million units, up 14%, both over the same period last year. In Japan, models equipped with Sharp’s proprietary LCDs, such as Mobile ASV LCDs, and high-resolution CCD cameras sold well. Though overseas sales fell below the same period last year, overall sales of mobile phones increased thanks to the contribution of Japanese market sales.
Total unit sales for the nine-month period were 8.89 million units, an increase of 16% over the same period last year. For fiscal 2005 as a whole, sales are projected to be 11.00 million units.

Sales of Home Appliances were 56.8 billion yen, up 11.8% over the same period last year.
Winter items sold well in Japan under the influence of cold weather, and sales of health-conscious appliances with built-in Plasmacluster Ion generating units and uniquely featured Sharp products, such as Superheated Steam Ovens, grew steadily.

Sales of Information Equipment were 102.9 billion yen, the same level as the same period last year. Sales of copier/printers, mainly digital color copiers increased, which covered sales declines of PCs.

As a result, sales of these three product groups comprising Consumer/Information Products were 473.8 billion yen, an increase of 10.0% over the same period last year.
(2)Electronic Components
Sales of LSIs were 41.6 billion yen, down 3.1% over the same period last year, reflecting the negative effect of price erosion. However, CCD/CMOS imagers, mainly for mobile phones, sold well.

Expanded sales of panels for LCD TVs contributed to sales growth in LCDs, with net sales of 205.2 billion yen, an increase of 26.5% over the same period last year.
Demand for LCD TVs continued to grow and TV screens shifted to larger sizes, resulting in the tight supply/demand situation for large-size LCDs and stable panel prices. This situation continues as we enter this year. Last October, Sharp increased substrate input capacity at its Kameyama No. 1 Plant from 45,000 to 51,000 panels per month. However, demand for LCD panels is stronger than ever, surpassing its production capacity. Therefore, Sharp is proceeding with preparations to boost input capacity to 60,000 panels monthly in March of this year.
Total sales for the nine-month period were 608.4 billion yen, an increase of 16.5% over the same period last year. For fiscal 2005 as a whole, sales are projected to be 830.0 billion yen, an increase of 15.3% over the same period last year.

Sales for Other Electronic Components were 77.5 billion yen, up 19.3% from the same period last year.
Sales of solar cells were 38.4 billion yen, an increase of 34% over the same period last year. Total sales for the nine-month period were 112.7 billion yen, an increase of 38% over the same period last year. For fiscal 2005 as a whole, sales are projected to be 150.0 billion yen, an increase of 27.7% over the same period last year.

As a result, sales of these three device product groups comprising Electronic Components were 324.4 billion yen, up 20.1% over the same period last year.

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