The forecasts for consolidated financial results for fiscal 2012 announced on April 27, 2012, have been revised. Declines in Audio-Visual and Communication Equipment and LCDs were the primary factors behind the downward revisions in both net sales (revised amount: 200.0 billion yen) and operating income (revised amount: 120.0 billion yen). More specifically, revisions were made due to falling sales of LCD TVs centered mainly in Japan and China, as well as to a shortfall in sales of small- and medium-size LCDs resulting from delays in both launching and expanding customers for IGZO LCDs and to decreased sales of electronic devices such as LED devices affected by the slump in sales of LCD TVs.

We have also revised downward the respective forecasts for the fiscal year as a whole for capital investment to 90.0 billion yen, depreciation and amortization to 200.0 billion yen, and R&D expenditures to 140.0 billion yen. The assumed exchange rates have also been changed to 100 yen to the euro.

At the same time, Sharp is continuing to take constructive steps to improve its financial position, including, as previously announced, off-balance-sheet arrangements of large-size LCD business, the issuance of new shares through a third party allotment to the Hon Hai Group, optimizing inventory levels and disposing of noncurrent assets, and reducing capital investment. By March 31, 2013, Sharp intends to reduce inventories to 400.0 billion yen from 527.4 billion yen at the end of March 31, 2012, and interest-bearing debt to 900.0 billion yen from 1,127.1 billion yen, respectively.
In addition, in anticipation of the redemption of 200.0 billion yen of unsecured convertible bonds with attached warrants for fiscal 2013, Sharp is asking its main creditor banks to consider a system of backup financing to ensure access to a stable source of long-term funding.

Sharp is projecting net sales of 2,500.0 billion yen, operating loss of 100.0 billion yen and net loss of 250.0 billion yen, incorporating losses such as restructuring charges.

Regarding the forecast for dividend per share for the year ending March 31, 2013, which had been undecided at the time of the announcement of the previous forecast, in taking into account the revisions to the forecast for financial results and the current financial situation, it is with deep regret that we have decided to omit both the interim dividend and the year-end dividend.