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<Consolidated Financial Results for the Year Ended March 31, 2008>
Business Strategy for Fiscal 2008
(1) LCD TVs and Large-Size LCDs
In fiscal 2007, sales of LCD TVs were 814.1 billion yen, up 32.7%, and unit sales were 8.25 million, up 37% over the previous year. We did not meet our projections for the year as a whole, as we failed to meet targets for overseas sales. We couldn’t respond fully and effectively to changes of global market conditions in our product planning and pricing policies.
With the spread of digital broadcasting around the world and steady price declines, as well as the growth in demand in the BRICs and other newly developing markets, global demand for LCD TVs in fiscal 2008 is anticipated to grow to 100 million units, 1.3 times greater than fiscal 2007.
We started the integrated production of LCD TVs from LCD modules to fully assembled TVs in Mexico and Poland, along with an increase in production at the Kameyama No. 2 Plant in July of 2007, and made efforts to build a global production system. In fiscal 2008, we will be working to strengthen the competitiveness of AQUOS LCD TVs by improving operations at our global manufacturing bases and by pursuing cost reductions throughout the total value chain.
In addition, we will be mounting a global effort to deploy LCD TVs that are better adapted to the specific needs of each region. Sharp will be focusing on the Japanese and North American markets, where steady demand is expected, and on markets such as China and the other BRICs, where rapid growth is expected. We will be keeping a close watch on market conditions and trends in the broadcast infrastructure, and we will work to strengthen our LCD business through product development and sales promotions that cater to specific regional characteristics.
Further, we intend to enhance AQUOS brand equity by taking proactive steps to effectively differentiate AQUOS products from those of our competitors through advanced technological capabilities, in particular, by introducing super-thin LCD TVs only two centimeters in thickness, as well as by boosting image quality and improving environmental performance.
For sales of LCD TVs in fiscal 2008, we are working to achieve our goal of 900.0 billion yen, up 10.5 %, and on a unit basis, sales of 10.00 million, up 21 % over the previous year.

The tight supply-demand balance for large-size LCDs that we experienced in fiscal 2007 continues, and prices remain on a stable track.
At present, inquiries regarding our large-size LCD panels remain brisk, and the Kameyama No. 1 and No. 2 Plants are fully operational. In this environment, from July 2008, the Kameyama No. 2 Plant will increase its glass substrate input capacity from 60,000 to 90,000 sheets per month, and we will be working to further expand business and improve profits by strengthening internal sales as well as sales to our strategic partners.
We will also be aiming to improve sales of LCDs for mobile equipment by focusing on high-value-added products that utilize unique Sharp technologies.
For fiscal 2008 as a whole, we are projecting sales of LCDs of 1,345.0 billion yen, an increase of 9.0% compared to the previous year.
At the moment, construction of the new plant in Sakai is proceeding as planned and we continue to work to further strengthen our relationships with companies involved and local authorities to ensure a smooth launch.
(2) Mobile Phones/Wireless PDAs
Fiscal 2007 sales of mobile phones and wireless PDAs were 651.3 billion yen, up 7.2% over the last year. On a unit basis, sales were 15.16 million, up 2% over the previous year.
Although the Japanese domestic market as a whole remained flat, Sharp models continued to gain widespread support among consumers and we were able to achieve solid sales growth. According to a study conducted by a research company, Sharp captured the No. 1 market share in Japan for the third consecutive year in fiscal 2007.
In fiscal 2008, Sharp will work to add even greater value to its products, including improvement of TV and audio functions, as well as create stylish models that match the demands of the market, with thinner profiles and superior design.
Overseas meanwhile, we will strengthen our efforts in China, where rapid growth is expected to continue, focusing on high-end handsets that have received high ratings from consumers in Japan.
For fiscal 2008, we are projecting sales of mobile phones and wireless PDAs of 640.0 billion yen, down 1.7%, and on a unit basis, 14.80 million units, down 2%, both compared to the previous year. This reflects the impact of longer replacement purchase cycles resulting from the introduction of installment sales by telecom carriers and other factors.
(3) Solar Cells
Sales of solar cells in fiscal 2007 were 151.0 billion yen, nearly the same level as the previous year.
Sharp has been taking proactive steps to produce silicon at the Toyama Site, as well as expand outside procurement from material manufacturers. As a result, the procurement situation for silicon raw material has improved from the last half of fiscal 2007 and we are well on the way to returning to profitability.
As for prospects for silicon procurement, we expect to secure amounts needed in fiscal 2008, and we will continue to work to expand sales and increase profits.
For thin-film solar cells, we plan to boost the production capacity at our Katsuragi Plant from the current level of 15 MW to 160 MW in October 2008. The amount of silicon used for thin-film solar cells is approximately one one-hundredth the amount required for crystalline solar cells, enabling a dramatic reduction in silicon usage. We also expect to reap cost reductions from manufacturing economies of scale from high-volume production, as the production processes are shorter. We will be working to build a high-efficiency production system through the installation of production equipment incorporating Sharp’s proprietary know-how, and our desire is that these efforts lead to the smooth start-up of the new plant in Sakai.
We anticipate fiscal 2008 sales of solar cells of 180.0 billion yen, an increase of 19.2% compared to the previous year.

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