Sharp : Notice Regarding Revision of Consolidated Financial Results Forecast for the Six Months Ended September 30, 2018

[Translation]

October 24, 2018

Company Name :

Sharp Corporation

Name of representative :

J.W. TaiChairman, President & Chief Executive Officer

(Code No. 6753)

Notice Regarding Revision of Consolidated Financial Results Forecast for the Six Months Ended September 30, 2018

Sharp Corporation ("the Company") announces the revision of its consolidated financial results forecast for the six months ended September 30, 2018 as follows. Previous forecast was announced on April 26, 2018.

1. Revision of financial results forecast

Revision of the consolidated financial results forecast for the six months ended September 30, 2018 (April 1, 2018 to September 30, 2018)

Net Sales (Millions of yen)	Operating Profit (Millions of yen)	Profit attributable to owners of parent (Millions of yen)	Net Income Per Share (yen)
Forecast previously announced (A)	1,300,000	46,000	36,000	54.52
Revised forecast (B)	1,125,000	46,500	40,000	61.10
Change (B-A)	(175,000)	500	4,000	－
Rate of change (%)	(13.5)	1.1	11.1	－
(Ref.) Results for the six months ended September 30, 2017	1,115,165	40,562	34,739	52.43

*The Company carried out a share consolidation of common shares as well as Class C shares at a ratio of 10 shares to 1 share on October 1, 2017. Net income per share above is calculated considering the impact of this share consolidation.

2.

Reason for the revision

During the period of this six months, the Company has worked to improve its profitability by pursuing "quality above quantity". As a part of this effort, the Company controlled the sales of LCD TVs in China in order to optimize the stock balance in the market. Moreover, typhoons made the negative impact on our logistics. As s result, the net sales forecast becomes lower than the previous forecast. On the other hand, since the effort of profitability improvement is steadily proceeding, the Company expects operating profit and profit attributable to owners of parent to exceed the previous forecast.

Based upon these factors, the Company has revised its consolidated financial results forecast for net sales, operating profit and profit attributable to owners of parent for the six months ended September 30, 2018.

Note: The aforementioned forecasts of financial results are based on information available and deemed reasonable to the Sharp Group at the time of announcement and are not commitments made by the

Company. Actual operating results may differ materially from the forecast due to various factors. The factors that may influence the figures for final reported business results include, but are not limited to:

・The economic situation in which the Company and its group companies operates;

・Sudden, rapid fluctuations in demand for the Company's products and services, as well as intense price

competition;

・Changes in exchange rates (particularly between the Japanese yen and the U.S. dollar, the euro and other currencies);

・Regulations such as trade restrictions in other countries;

・The progress of collaborations and alliances with other companies; ・Litigation and other legal proceedings against the Company;

・Rapid technological changes in products and services.