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SHARP Consolidated Financial Results for the First Quarter , Fiscal 2026 I. Consolidated Financial Results for the First Quarter , Fiscal 2026 II . Consolidated Financial Results Forecast for Fiscal 2026 III . Progress of Medium - Term Management Plan IV . Supplementary Data SHARP CORPORATION August 7 , 2026
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1 Outline In the first quarter, sales increased in both Brand Business segments compared to the same period of the last fiscal year. Operating profit declined due to the significant impact of higher component prices and the weaker yen. Operating loss in Display Device narrowed, while sales decreased. Although Sharp’s net sales and profits decreased, operating profit exceeded the fourth quarter of fiscal 2025. Bottom-line profit remained profitable. The equity ratio increased to the 20% range for the first time since the third quarter of fiscal 2022. Full-year financial results forecast was revised to reflect the impact of rising resin and fuel prices, as well as a change in foreign exchange rate forecast. ・ ・ ・ ・ 2 Consolidated Financial Results for the First Quarter, Fiscal 2026 Ⅰ.
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1 Outline In the first quarter, sales increased in both Brand Business segments compared to the same period of the last fiscal year. Operating profit declined due to the significant impact of higher component prices and the weaker yen. Operating loss in Display Device narrowed, while sales decreased. Although Sharp’s net sales and profits decreased, operating profit exceeded the fourth quarter of fiscal 2025. Bottom-line profit remained profitable. The equity ratio increased to the 20% range for the first time since the third quarter of fiscal 2022. Full-year financial results forecast was revised to reflect the impact of rising resin and fuel prices, as well as a change in foreign exchange rate forecast. ・ ・ ・ ・ 2 Consolidated Financial Results for the First Quarter, Fiscal 2026 Ⅰ.
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FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 Change Difference -7.9% -37.2 435.2 475.1 467.3 477.8 472.4 Net Sales -46.3% -7.1 8.2 7.5 12.0 13.6 15.3 Operating Profit (1.9%) (1.6%) (2.6%) (2.9%) (3.2%) -64.5% -12.0 6.5 10.2 14.1 14.9 18.5 Ordinary Profit (1.5%) (2.2%) (3.0%) (3.1%) (3.9%) -88.6% -24.1 3.1 -20.0 22.0 18.2 27.2 Bottom-line Profit (0.7%) (-4.2%) (4.7%) (3.8%) (5.8%) Avg. Exchange Rates - - 159.49 156.87 154.15 147.48 144.60 USD/JPY - - 185.38 183.65 179.39 172.31 163.81 Euro/JPY 3 (Billions of Yen) Consolidated Financial Results for the First Quarter, Fiscal 2026 0 10 20 30 FY2025 Q1 FY2026 Q1 4 Operating Profit Analysis: Y on Y Change Factors Sales -7.2 Cost, model mix -7.9 Overhead expense +2.4 Selling prices +14.3 15.3 8.2 Display device +1.6 Foreign exchange -8.7 Brand business -10.3 (Management accounting) (Billions of Yen)
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FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 Change Difference -7.9% -37.2 435.2 475.1 467.3 477.8 472.4 Net Sales -46.3% -7.1 8.2 7.5 12.0 13.6 15.3 Operating Profit (1.9%) (1.6%) (2.6%) (2.9%) (3.2%) -64.5% -12.0 6.5 10.2 14.1 14.9 18.5 Ordinary Profit (1.5%) (2.2%) (3.0%) (3.1%) (3.9%) -88.6% -24.1 3.1 -20.0 22.0 18.2 27.2 Bottom-line Profit (0.7%) (-4.2%) (4.7%) (3.8%) (5.8%) Avg. Exchange Rates - - 159.49 156.87 154.15 147.48 144.60 USD/JPY - - 185.38 183.65 179.39 172.31 163.81 Euro/JPY 3 (Billions of Yen) Consolidated Financial Results for the First Quarter, Fiscal 2026 0 10 20 30 FY2025 Q1 FY2026 Q1 4 Operating Profit Analysis: Y on Y Change Factors Sales -7.2 Cost, model mix -7.9 Overhead expense +2.4 Selling prices +14.3 15.3 8.2 Display device +1.6 Foreign exchange -8.7 Brand business -10.3 (Management accounting) (Billions of Yen)
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0 SL SW DD Sales by Segment FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 +2.6% 144.0 149.6 157.1 150.7 140.3 Smart Life +6.1% 200.8 217.7 207.5 219.1 189.3 Smart Workplace +4.6% 344.9 367.4 364.7 369.9 329.7 Brand Business -16.4% 91.3 108.0 103.5 102.6 109.2 Display Device -0.6% 436.2 475.4 468.2 472.5 439.0 Subtotal -- 0.8 0.8 7.2 38.0 Others -8.6% 436.2 476.3 469.1 479.8 477.0 Total --1.0 -1.1 -1.7 -1.9 -4.5 Adjustments -7.9% 435.2 475.1 467.3 477.8 472.4 Consolidated total 5 (Billions of Yen) Left bar, FY2025Q1 Right bar, FY2026Q1 *Sales include inter-segment sales and transfers. -8 0 8 16 24 SL SW DD Operating Profit by Segment 6 FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 -45.6% 3.7 6.7 8.4 6.4 6.8 Smart Life (2.6%) (4.5%) (5.4%) (4.2%) (4.9%) -24.6% 10.7 10.8 13.7 18.7 14.2 Smart Workplace (5.3%) (5.0%) (6.6%) (8.6%) (7.5%) -31.5% 14.4 17.5 22.2 25.1 21.0 Brand Business (4.2%) (4.8%) (6.1%) (6.8%) (6.4%) --2.1 -4.7 -4.8 -6.2 -2.5 Display Device (-2.4%) (-4.4%) (-4.6%) (-6.1%) (-2.3%) -33.9% 12.2 12.8 17.3 18.9 18.5 Subtotal (2.8%) (2.7%) (3.7%) (4.0%) (4.2%) -- -0.0 -0.5 -0.1 1.3 Others (-2.6%) (-58.8%) (-1.6%) (3.5%) -38.3% 12.2 12.8 16.8 18.8 19.9 Total (2.8%) (2.7%) (3.6%) (3.9%) (4.2%) --4.0 -5.2 -4.8 -5.1 -4.6 Adjustments -46.3% 8.2 7.5 12.0 13.6 15.3 Consolidated total (1.9%) (1.6%) (2.6%) (2.9%) (3.2%) (Billions of Yen) Left bar, FY2025Q1 Right bar, FY2026Q1 *Figures within parentheses indicate operating margin.
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0 SL SW DD Sales by Segment FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 +2.6% 144.0 149.6 157.1 150.7 140.3 Smart Life +6.1% 200.8 217.7 207.5 219.1 189.3 Smart Workplace +4.6% 344.9 367.4 364.7 369.9 329.7 Brand Business -16.4% 91.3 108.0 103.5 102.6 109.2 Display Device -0.6% 436.2 475.4 468.2 472.5 439.0 Subtotal -- 0.8 0.8 7.2 38.0 Others -8.6% 436.2 476.3 469.1 479.8 477.0 Total --1.0 -1.1 -1.7 -1.9 -4.5 Adjustments -7.9% 435.2 475.1 467.3 477.8 472.4 Consolidated total 5 (Billions of Yen) Left bar, FY2025Q1 Right bar, FY2026Q1 *Sales include inter-segment sales and transfers. -8 0 8 16 24 SL SW DD Operating Profit by Segment 6 FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 -45.6% 3.7 6.7 8.4 6.4 6.8 Smart Life (2.6%) (4.5%) (5.4%) (4.2%) (4.9%) -24.6% 10.7 10.8 13.7 18.7 14.2 Smart Workplace (5.3%) (5.0%) (6.6%) (8.6%) (7.5%) -31.5% 14.4 17.5 22.2 25.1 21.0 Brand Business (4.2%) (4.8%) (6.1%) (6.8%) (6.4%) --2.1 -4.7 -4.8 -6.2 -2.5 Display Device (-2.4%) (-4.4%) (-4.6%) (-6.1%) (-2.3%) -33.9% 12.2 12.8 17.3 18.9 18.5 Subtotal (2.8%) (2.7%) (3.7%) (4.0%) (4.2%) -- -0.0 -0.5 -0.1 1.3 Others (-2.6%) (-58.8%) (-1.6%) (3.5%) -38.3% 12.2 12.8 16.8 18.8 19.9 Total (2.8%) (2.7%) (3.6%) (3.9%) (4.2%) --4.0 -5.2 -4.8 -5.1 -4.6 Adjustments -46.3% 8.2 7.5 12.0 13.6 15.3 Consolidated total (1.9%) (1.6%) (2.6%) (2.9%) (3.2%) (Billions of Yen) Left bar, FY2025Q1 Right bar, FY2026Q1 *Figures within parentheses indicate operating margin.
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0 FY2025 Q1 SW +11.5 Adjustments +3.5 SL +3.7 FY2026 Q1 SL -3.1 SW -3.5 Adjustments +0.6 Sales Operating profit FY2025 Q1 435.2 472.4 8.2 15.3 DD -17.9 Others -38.0 DD +0.4 Others -1.3 7 FY2026 Q1 Sales and Operating Profit: Y on Y Change by Segment (Billions of Yen) 0 0 100 200 Q1 Q2 Q3 Q4 Q1 0 10 0 10 Q1 Q2 Q3 Q4 Q1 Smart Life （%） 8 In the white goods business, sales increased in Japan and overseas. Air conditioners in Japan grew significantly, and cooking appliances in the Americas and air conditioners and refrigerators in ASEAN also recorded strong sales. (Inc.) In the energy solutions business, sales increased. Battery storage systems and space applications grew in Japan, and sales in Asia increased. (Inc.) In the TV business, sales declined. Although sales grew in Asia, Europe, and the Americas, sales in Japan declined due to intensified competition. (Dec.) Increase in material prices. (Dec.) Depreciation of the yen. (Dec.) FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 +2.6% 144.0 149.6 157.1 150.7 140.3 Sales -45.6% 3.7 6.7 8.4 6.4 6.8 Operating (2.6%) (4.5%) (5.4%) (4.2%) (4.9%) Profit (Billions of Yen) (Billions of Yen) (Billions of Yen) Margin (right axis) Sales Operating profit FY2026 FY2026 FY2025 FY2025
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0 FY2025 Q1 SW +11.5 Adjustments +3.5 SL +3.7 FY2026 Q1 SL -3.1 SW -3.5 Adjustments +0.6 Sales Operating profit FY2025 Q1 435.2 472.4 8.2 15.3 DD -17.9 Others -38.0 DD +0.4 Others -1.3 7 FY2026 Q1 Sales and Operating Profit: Y on Y Change by Segment (Billions of Yen) 0 0 100 200 Q1 Q2 Q3 Q4 Q1 0 10 0 10 Q1 Q2 Q3 Q4 Q1 Smart Life （%） 8 In the white goods business, sales increased in Japan and overseas. Air conditioners in Japan grew significantly, and cooking appliances in the Americas and air conditioners and refrigerators in ASEAN also recorded strong sales. (Inc.) In the energy solutions business, sales increased. Battery storage systems and space applications grew in Japan, and sales in Asia increased. (Inc.) In the TV business, sales declined. Although sales grew in Asia, Europe, and the Americas, sales in Japan declined due to intensified competition. (Dec.) Increase in material prices. (Dec.) Depreciation of the yen. (Dec.) FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 +2.6% 144.0 149.6 157.1 150.7 140.3 Sales -45.6% 3.7 6.7 8.4 6.4 6.8 Operating (2.6%) (4.5%) (5.4%) (4.2%) (4.9%) Profit (Billions of Yen) (Billions of Yen) (Billions of Yen) Margin (right axis) Sales Operating profit FY2026 FY2026 FY2025 FY2025
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0 100 200 Q1 Q2 Q3 Q4 Q1 0 5 10 15 0 10 20 30 Q1 Q2 Q3 Q4 Q1 Smart Workplace （%） 9 In the PC business, B2B sales, sales for government agencies, and sales for GIGA in Japan saw significant growth due to progress in passing on higher prices as well as front-loaded demand ahead of price increases. (Inc.) In the business solutions business, office solutions grew across all regions, while MFP sales increased in Japan and overseas. (Inc.) In the mobile communications business, sales declined due to competitors’ aggressive sales activities amid a market slowdown caused by soaring memory prices. (Dec.) Improvements in model mix. (Inc.) Increase in memory prices. (Dec.) Depreciation of the yen. (Dec.) FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 +6.1% 200.8 217.7 207.5 219.1 189.3 Sales -24.6% 10.7 10.8 13.7 18.7 14.2 Operating (5.3%) (5.0%) (6.6%) (8.6%) (7.5%) Profit (Billions of Yen) Margin (right axis) (Billions of Yen) (Billions of Yen) Sales Operating profit FY2026 FY2026 FY2025 FY2025 -10 0 -10 0 Q1 Q2 Q3 Q4 Q1 Display Device （%） 10 Sales for automotive applications and for PC and tablet panels declined from the same period of the previous fiscal year, when there was rush demand due to U.S. tariffs. (Dec.) Progress of structural reforms. (Inc.) Decrease in sales. (Dec.) FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 -16.4% 91.3 108.0 103.5 102.6 109.2 Sales --2.1 -4.7 -4.8 -6.2 -2.5 Operating (-2.4%) (-4.4%) (-4.6%) (-6.1%) (-2.3%) Profit 0 100 Q1 Q2 Q3 Q4 Q1 (Billions of Yen) Margin (right axis) (Billions of Yen) (Billions of Yen) Sales Operating profit FY2026 FY2026 FY2025 FY2025
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0 100 200 Q1 Q2 Q3 Q4 Q1 0 5 10 15 0 10 20 30 Q1 Q2 Q3 Q4 Q1 Smart Workplace （%） 9 In the PC business, B2B sales, sales for government agencies, and sales for GIGA in Japan saw significant growth due to progress in passing on higher prices as well as front-loaded demand ahead of price increases. (Inc.) In the business solutions business, office solutions grew across all regions, while MFP sales increased in Japan and overseas. (Inc.) In the mobile communications business, sales declined due to competitors’ aggressive sales activities amid a market slowdown caused by soaring memory prices. (Dec.) Improvements in model mix. (Inc.) Increase in memory prices. (Dec.) Depreciation of the yen. (Dec.) FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 +6.1% 200.8 217.7 207.5 219.1 189.3 Sales -24.6% 10.7 10.8 13.7 18.7 14.2 Operating (5.3%) (5.0%) (6.6%) (8.6%) (7.5%) Profit (Billions of Yen) Margin (right axis) (Billions of Yen) (Billions of Yen) Sales Operating profit FY2026 FY2026 FY2025 FY2025 -10 0 -10 0 Q1 Q2 Q3 Q4 Q1 Display Device （%） 10 Sales for automotive applications and for PC and tablet panels declined from the same period of the previous fiscal year, when there was rush demand due to U.S. tariffs. (Dec.) Progress of structural reforms. (Inc.) Decrease in sales. (Dec.) FY2026 FY2025 Y on Y Q1 Q4 Q3 Q2 Q1 -16.4% 91.3 108.0 103.5 102.6 109.2 Sales --2.1 -4.7 -4.8 -6.2 -2.5 Operating (-2.4%) (-4.4%) (-4.6%) (-6.1%) (-2.3%) Profit 0 100 Q1 Q2 Q3 Q4 Q1 (Billions of Yen) Margin (right axis) (Billions of Yen) (Billions of Yen) Sales Operating profit FY2026 FY2026 FY2025 FY2025
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FY2026 FY2025 Difference Y on Y Q1 Q4 Q3 Q2 Q1 -7.1 8.2 7.5 12.0 13.6 15.3 Operating Profit -4.8 -1.6 +2.6 +2.1 +1.3 +3.2 Non-operating Income (Expenses) -0.9 -2.9 -2.2 -2.1 -2.2 -2.0 Interest expenses -1.2 +0.0 +1.9 +0.5 -0.3 +1.2 Foreign exchange gains (losses) +0.2 +0.0 +0.0 +0.0 +0.0 -0.2 Investment income (expenses) -0.0 +2.1 +1.8 +2.0 +1.8 +2.1 Share of profit (loss) of entities accounted for using equity method -2.2 -2.2 - - - - Commission for syndicated loans -12.0 6.5 10.2 14.1 14.9 18.5 Ordinary Profit -12.8 -1.1 -24.3 +12.5 +5.5 +11.7 Extraordinary Income (Losses) -11.4 +0.2 +2.2 +14.3 +7.8 +11.6 Gain on sale of non-current assets -0.8 - -0.0 +1.9 -0.8 +0.8 Gain on sale of business -0.8 -0.8 - - - -Loss on sale of shares of subsidiaries and associates -0.5 -0.5 -16.8 -3.0 - - Business restructuring expenses +0.5 - -2.5 -0.5 -2.5 -0.5 Impairment losses - - -7.0 - - -Provision for product warranties -24.9 5.4 -14.0 26.6 20.4 30.3 Pretax Income +0.7 -2.3 -6.0 -4.6 -2.2 -3.0 Income Taxes, etc. -24.1 3.1 -20.0 22.0 18.2 27.2 Bottom-line Profit 11 Non-Operating Income (Expenses) / Extraordinary Income (Losses) (Billions of Yen) Consolidated Balance Sheets 12 ・The equity ratio increased to 20.2%. FY2026 FY2025 End of Jun. End of Mar. End of Dec. 250.3 238.4 241.7 Cash and deposits 343.9 368.8 380.0 Notes and accounts receivable – trade, etc. 289.1 250.3 265.9 Inventories 83.8 91.7 87.6 Other current assets 967.2 949.3 975.4 Current Assets 183.0 183.2 183.4 Property, plant and Equipment 37.4 38.1 33.6 Intangible assets 263.9 257.4 243.7 Investments and other Assets 484.4 478.8 460.8 Non-current Assets 1,451.7 1,428.2 1,436.2 Total Assets Exchange Rate, End of Period 162.45 159.93 156.54 USD/JPY 185.44 183.44 184.26 Euro/JPY FY2026 FY2025 End of Jun. End of Mar. End of Dec. 271.5 273.7 302.6 Notes and accounts payable – trade, etc. 81.6 432.2 437.2 Short-term borrowings 0.0 0.0 0.0 Current portion of bonds payable 317.0 339.4 308.7 Other current liabilities 670.2 1,045.3 1,048.6 Current Liabilities 0.0 0.0 0.0 Bonds payable 386.9 0.5 11.7 Long-term borrowings 86.3 87.0 104.8 Other non-current liabilities 473.2 87.5 116.6 Non-current Liabilities 308.2 295.2 270.9 Net Assets 1,451.7 1,428.2 1,436.2 Total Liabilities and Net Assets 20.2% 19.6% 17.8% Equity Ratio 292.6 279.9 256.2 Equity (Billions of Yen)
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FY2026 FY2025 Difference Y on Y Q1 Q4 Q3 Q2 Q1 -7.1 8.2 7.5 12.0 13.6 15.3 Operating Profit -4.8 -1.6 +2.6 +2.1 +1.3 +3.2 Non-operating Income (Expenses) -0.9 -2.9 -2.2 -2.1 -2.2 -2.0 Interest expenses -1.2 +0.0 +1.9 +0.5 -0.3 +1.2 Foreign exchange gains (losses) +0.2 +0.0 +0.0 +0.0 +0.0 -0.2 Investment income (expenses) -0.0 +2.1 +1.8 +2.0 +1.8 +2.1 Share of profit (loss) of entities accounted for using equity method -2.2 -2.2 - - - - Commission for syndicated loans -12.0 6.5 10.2 14.1 14.9 18.5 Ordinary Profit -12.8 -1.1 -24.3 +12.5 +5.5 +11.7 Extraordinary Income (Losses) -11.4 +0.2 +2.2 +14.3 +7.8 +11.6 Gain on sale of non-current assets -0.8 - -0.0 +1.9 -0.8 +0.8 Gain on sale of business -0.8 -0.8 - - - -Loss on sale of shares of subsidiaries and associates -0.5 -0.5 -16.8 -3.0 - - Business restructuring expenses +0.5 - -2.5 -0.5 -2.5 -0.5 Impairment losses - - -7.0 - - -Provision for product warranties -24.9 5.4 -14.0 26.6 20.4 30.3 Pretax Income +0.7 -2.3 -6.0 -4.6 -2.2 -3.0 Income Taxes, etc. -24.1 3.1 -20.0 22.0 18.2 27.2 Bottom-line Profit 11 Non-Operating Income (Expenses) / Extraordinary Income (Losses) (Billions of Yen) Consolidated Balance Sheets 12 ・The equity ratio increased to 20.2%. FY2026 FY2025 End of Jun. End of Mar. End of Dec. 250.3 238.4 241.7 Cash and deposits 343.9 368.8 380.0 Notes and accounts receivable – trade, etc. 289.1 250.3 265.9 Inventories 83.8 91.7 87.6 Other current assets 967.2 949.3 975.4 Current Assets 183.0 183.2 183.4 Property, plant and Equipment 37.4 38.1 33.6 Intangible assets 263.9 257.4 243.7 Investments and other Assets 484.4 478.8 460.8 Non-current Assets 1,451.7 1,428.2 1,436.2 Total Assets Exchange Rate, End of Period 162.45 159.93 156.54 USD/JPY 185.44 183.44 184.26 Euro/JPY FY2026 FY2025 End of Jun. End of Mar. End of Dec. 271.5 273.7 302.6 Notes and accounts payable – trade, etc. 81.6 432.2 437.2 Short-term borrowings 0.0 0.0 0.0 Current portion of bonds payable 317.0 339.4 308.7 Other current liabilities 670.2 1,045.3 1,048.6 Current Liabilities 0.0 0.0 0.0 Bonds payable 386.9 0.5 11.7 Long-term borrowings 86.3 87.0 104.8 Other non-current liabilities 473.2 87.5 116.6 Non-current Liabilities 308.2 295.2 270.9 Net Assets 1,451.7 1,428.2 1,436.2 Total Liabilities and Net Assets 20.2% 19.6% 17.8% Equity Ratio 292.6 279.9 256.2 Equity (Billions of Yen)
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242.0 261.7 248.8 265.9 250.3 289.1 1.34 1.66 1.57 1.69 1.59 1.99 0.00 2.00 0 200 2025/3 2025/6 2025/9 2025/12 2026/3 2026/6 Inventory Trends Display • Inventory increased compared to the end of March, mainly due to the advance procurement of memory amid soaring prices. • Inventory is at an appropriate level in line with our future sales plans. (End of Period) 13 USD/JPY 162.45 159.93 156.54 148.89 144.82 149.53 Ratio vs. Monthly Sales (Billions of Yen, Months) 567.6 541.3 537.6 501.7 492.5 515.2 288.3 331.3 295.0 259.9 254.1 264.9 3.15 3.44 3.39 3.19 3.12 3.55 0 500 2025/3 2025/6 2025/9 2025/12 2026/3 2026/6 Interest-Bearing Debt Trends Interest-bearing debt Ratio vs. Monthly Sales 14 0.9 0.9 1.0 1.4 1.9 1.9 Net DER Left bar: Interest-bearing debt Right bar: Net interest-bearing debt *Net interest-bearing debt: interest-bearing debt – cash and deposits (Billions of Yen, Months)
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242.0 261.7 248.8 265.9 250.3 289.1 1.34 1.66 1.57 1.69 1.59 1.99 0.00 2.00 0 200 2025/3 2025/6 2025/9 2025/12 2026/3 2026/6 Inventory Trends Display • Inventory increased compared to the end of March, mainly due to the advance procurement of memory amid soaring prices. • Inventory is at an appropriate level in line with our future sales plans. (End of Period) 13 USD/JPY 162.45 159.93 156.54 148.89 144.82 149.53 Ratio vs. Monthly Sales (Billions of Yen, Months) 567.6 541.3 537.6 501.7 492.5 515.2 288.3 331.3 295.0 259.9 254.1 264.9 3.15 3.44 3.39 3.19 3.12 3.55 0 500 2025/3 2025/6 2025/9 2025/12 2026/3 2026/6 Interest-Bearing Debt Trends Interest-bearing debt Ratio vs. Monthly Sales 14 0.9 0.9 1.0 1.4 1.9 1.9 Net DER Left bar: Interest-bearing debt Right bar: Net interest-bearing debt *Net interest-bearing debt: interest-bearing debt – cash and deposits (Billions of Yen, Months)
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15 Consolidated Financial Results Forecast for Fiscal 2026 Ⅱ.
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16 FY2026 FY2025 Revision Y on Y Fiscal Year Forecast Fiscal-year Previous Forecast Fiscal Year 0.0 -6.5% 1,770.0 1,770.0 1,892.8 Net Sales -19.0 -38.2% 30.0 49.0 48.5 Operating Profit (1.7%) (2.8%) (2.6%) (margin) -17.0 -62.0% 22.0 39.0 57.9 Ordinary Profit (1.2%) (2.2%) (3.1%) (margin) -17.0 -47.3% 25.0 42.0 47.4 Bottom-line Profit (1.4%) (2.4%) (2.5%) (margin) Avg. Exchange Rate 160.00 156.00 150.78 USD/JPY 183.00 183.00 174.79 Euro/JPY Consolidated Financial Results Forecast for Fiscal 2026 (Billions of Yen) FY2026 FY2025 Revision Y on Y Fiscal Year Forecast Fiscal-year Previous Forecast Fiscal Year -34.0 +5.4% 630.0 664.0 597.9 Sales Smart Life -16.0 -12.1% 25.0 41.0 28.4 Operating Profit (4.0%) (6.2%) (4.8%) (margin) +53.0 -0.2% 832.0 779.0 833.8 Sales Smart Workplace +3.0 -27.1% 42.0 39.0 57.5 Operating Profit (5.0%) (5.0%) (6.9%) (margin) +19.0 +2.1% 1,462.0 1,443.0 1,431.8 Sales Brand Business -13.0 -22.1% 67.0 80.0 86.0 Operating Profit (4.6%) (5.5%) (6.0%) (margin) -19.0 -28.2% 304.0 323.0 423.5 Sales Display Device -6.0 --12.0 -6.0 -18.2 Operating Profit (-3.9%) (-1.9%) (-4.3%) (margin) - -4.8% 1,766.0 1,766.0 1,855.3 Sales Subtotal -19.0 -18.9% 55.0 74.0 67.7 Operating Profit (3.1%) (4.2%) (3.7%) (margin) - - - - - - - - 47.0 0.6 (1.5%) Sales Operating Profit Others (margin) - -4.0 4.0 -9.5 Sales Adjustments - --25.0 -25.0 -19.9 Operating Profit 0.0 -6.5% 1,770.0 1,770.0 1,892.8 Sales Consolidated total -19.0 -38.2% 30.0 49.0 48.5 Operating Profit (1.7%) (2.8%) (2.6%) (margin) 17 Consolidated Financial Results Forecast by Segment (Billions of Yen)
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16 FY2026 FY2025 Revision Y on Y Fiscal Year Forecast Fiscal-year Previous Forecast Fiscal Year 0.0 -6.5% 1,770.0 1,770.0 1,892.8 Net Sales -19.0 -38.2% 30.0 49.0 48.5 Operating Profit (1.7%) (2.8%) (2.6%) (margin) -17.0 -62.0% 22.0 39.0 57.9 Ordinary Profit (1.2%) (2.2%) (3.1%) (margin) -17.0 -47.3% 25.0 42.0 47.4 Bottom-line Profit (1.4%) (2.4%) (2.5%) (margin) Avg. Exchange Rate 160.00 156.00 150.78 USD/JPY 183.00 183.00 174.79 Euro/JPY Consolidated Financial Results Forecast for Fiscal 2026 (Billions of Yen) FY2026 FY2025 Revision Y on Y Fiscal Year Forecast Fiscal-year Previous Forecast Fiscal Year -34.0 +5.4% 630.0 664.0 597.9 Sales Smart Life -16.0 -12.1% 25.0 41.0 28.4 Operating Profit (4.0%) (6.2%) (4.8%) (margin) +53.0 -0.2% 832.0 779.0 833.8 Sales Smart Workplace +3.0 -27.1% 42.0 39.0 57.5 Operating Profit (5.0%) (5.0%) (6.9%) (margin) +19.0 +2.1% 1,462.0 1,443.0 1,431.8 Sales Brand Business -13.0 -22.1% 67.0 80.0 86.0 Operating Profit (4.6%) (5.5%) (6.0%) (margin) -19.0 -28.2% 304.0 323.0 423.5 Sales Display Device -6.0 --12.0 -6.0 -18.2 Operating Profit (-3.9%) (-1.9%) (-4.3%) (margin) - -4.8% 1,766.0 1,766.0 1,855.3 Sales Subtotal -19.0 -18.9% 55.0 74.0 67.7 Operating Profit (3.1%) (4.2%) (3.7%) (margin) - - - - - - - - 47.0 0.6 (1.5%) Sales Operating Profit Others (margin) - -4.0 4.0 -9.5 Sales Adjustments - --25.0 -25.0 -19.9 Operating Profit 0.0 -6.5% 1,770.0 1,770.0 1,892.8 Sales Consolidated total -19.0 -38.2% 30.0 49.0 48.5 Operating Profit (1.7%) (2.8%) (2.6%) (margin) 17 Consolidated Financial Results Forecast by Segment (Billions of Yen)
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Progress of Medium-Term Management Plan Ⅲ. 18 19 Progress of Key Initiatives BG/BU Integrated AI service connecting various devices and services will be announced soon. Domestic B2B sales in Q1 of FY2026 increased by approximately 40% year on year. Smart Life 1. Launched integrated solution proposals utilizing ERP collaborated with Synapse Innovation Inc., which was acquired as a subsidiary in March. Sharp signed MOU with major global satellite operator SES to build a collaboration in satellite communication services on 30 June. Smart Workplace 2. Process of ceasing production at Kameyama No. 2 Plant is progressing smoothly. Domestic organizations related to the Display Device business will be reintegrated into Sharp Corporation on 1 October. Display Device 3. Progress of Medium-Term Management Plan （1/2 ）
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Progress of Medium-Term Management Plan Ⅲ. 18 19 Progress of Key Initiatives BG/BU Integrated AI service connecting various devices and services will be announced soon. Domestic B2B sales in Q1 of FY2026 increased by approximately 40% year on year. Smart Life 1. Launched integrated solution proposals utilizing ERP collaborated with Synapse Innovation Inc., which was acquired as a subsidiary in March. Sharp signed MOU with major global satellite operator SES to build a collaboration in satellite communication services on 30 June. Smart Workplace 2. Process of ceasing production at Kameyama No. 2 Plant is progressing smoothly. Domestic organizations related to the Display Device business will be reintegrated into Sharp Corporation on 1 October. Display Device 3. Progress of Medium-Term Management Plan （1/2 ）
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20 Advancing the development of the business model and commercial terms to launch the AI server business under the Sharp brand. Briefing is planned for September. AI Infrastructure Strengthened Collaboration with Hon Hai Foxconn and Sharp signed MOU for strategic collaboration in new business areas on 24 June. ［Main Scope ］ 1. AI Infrastructure and solutions 2. Energy and ESG- related applications 3. Robotics and smart automations systems 4. Next-Generation communication technologies 5. Sma rt cities A new base will be established in Taiwan in October to further accelerate these efforts. Progress of Medium-Term Management Plan （2/2 ） Invested in Noetra, a company advancing the research and development of a domestic multimodal foundation model serving as a development base for AI robots and physical AI. S-1 Supplementary Data Ⅳ.
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20 Advancing the development of the business model and commercial terms to launch the AI server business under the Sharp brand. Briefing is planned for September. AI Infrastructure Strengthened Collaboration with Hon Hai Foxconn and Sharp signed MOU for strategic collaboration in new business areas on 24 June. ［Main Scope ］ 1. AI Infrastructure and solutions 2. Energy and ESG- related applications 3. Robotics and smart automations systems 4. Next-Generation communication technologies 5. Sma rt cities A new base will be established in Taiwan in October to further accelerate these efforts. Progress of Medium-Term Management Plan （2/2 ） Invested in Noetra, a company advancing the research and development of a domestic multimodal foundation model serving as a development base for AI robots and physical AI. S-1 Supplementary Data Ⅳ.
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FY2026 FY2025 Fiscal Year Forecast Fiscal Year Second Half First Half 1,770.0 1,892.8 942.4 950.3 Net Sales 30.0 48.5 19.6 28.9 Operating Profit (1.7%) (2.6%) (2.1%) (3.0%) (margin) 22.0 57.9 24.3 33.5 Ordinary Profit (1.2%) (3.1%) (2.6%) (3.5%) (margin) 25.0 47.4 1.9 45.4 Bottom-line Profit (1.4%) (2.5%) (0.2%) (4.8%) (margin) Consolidated Financial Results S-2 (Billions of Yen) FY2026 FY2025 Q1 Q4 Q3 Q2 Q1 435.2 475.1 467.3 477.8 472.4 Net Sales 8.2 7.5 12.0 13.6 15.3 Operating Profit (1.9%) (1.6%) (2.6%) (2.9%) (3.2%) (margin) 6.5 10.2 14.1 14.9 18.5 Ordinary Profit (1.5%) (2.2%) (3.0%) (3.1%) (3.9%) (margin) 3.1 -20.0 22.0 18.2 27.2 Bottom-line Profit (0.7%) (-4.2%) (4.7%) (3.8%) (5.8%) (margin) Consolidated Quarterly Financial Results S-3 (Billions of Yen)
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FY2026 FY2025 Fiscal Year Forecast Fiscal Year Second Half First Half 1,770.0 1,892.8 942.4 950.3 Net Sales 30.0 48.5 19.6 28.9 Operating Profit (1.7%) (2.6%) (2.1%) (3.0%) (margin) 22.0 57.9 24.3 33.5 Ordinary Profit (1.2%) (3.1%) (2.6%) (3.5%) (margin) 25.0 47.4 1.9 45.4 Bottom-line Profit (1.4%) (2.5%) (0.2%) (4.8%) (margin) Consolidated Financial Results S-2 (Billions of Yen) FY2026 FY2025 Q1 Q4 Q3 Q2 Q1 435.2 475.1 467.3 477.8 472.4 Net Sales 8.2 7.5 12.0 13.6 15.3 Operating Profit (1.9%) (1.6%) (2.6%) (2.9%) (3.2%) (margin) 6.5 10.2 14.1 14.9 18.5 Ordinary Profit (1.5%) (2.2%) (3.0%) (3.1%) (3.9%) (margin) 3.1 -20.0 22.0 18.2 27.2 Bottom-line Profit (0.7%) (-4.2%) (4.7%) (3.8%) (5.8%) (margin) Consolidated Quarterly Financial Results S-3 (Billions of Yen)
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Sales by Segment FY2026 FY2025 Fiscal Year Forecast Fiscal Year Second Half First Half 630.0 597.9 306.8 291.1 Smart Life 832.0 833.8 425.2 408.5 Smart Workplace 1,462.0 1,431.8 732.1 699.6 Brand Business 304.0 423.5 211.6 211.8 Display Device 1,766.0 1,855.3 943.7 911.5 Subtotal - 47.0 1.6 45.3 Others - 1,902.3 945.4 956.8 Total 4.0 -9.5 -2.9 -6.5 Adjustments 1,770.0 1,892.8 942.4 950.3 Consolidated total S-4 (Billions of Yen) *Sales include inter-segment sales and transfers. FY2026 FY2025 Fiscal Year Forecast Fiscal Year Second Half First Half 25.0 28.4 15.1 13.2 Smart Life (4.0%) (4.8%) (4.9%) (4.6%) 42.0 57.5 24.6 32.9 Smart Workplace (5.0%) (6.9%) (5.8%) (8.1%) 67.0 86.0 39.7 46.2 Brand Business (4.6%) (6.0%) (5.4%) (6.6%) -12.0 -18.2 -9.5 -8.7 Display Device (-3.9%) (-4.3%) (-4.5%) (-4.1%) 55.0 67.7 30.2 37.5 Subtotal (3.1%) (3.7%) (3.2%) (4.1%) - 0.6 -0.5 1.2 Others (1.5%) (-31.6%) (2.7%) - 68.4 29.7 38.7 Total (3.6%) (3.1%) (4.0%) -25.0 -19.9 -10.1 -9.7 Adjustments 30.0 48.5 19.6 28.9 Consolidated total (1.7%) (2.6%) (2.1%) (3.0%) Operating Profit by Segment S-5 (Billions of Yen) *Sales include inter-segment sales and transfers.
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Sales by Segment FY2026 FY2025 Fiscal Year Forecast Fiscal Year Second Half First Half 630.0 597.9 306.8 291.1 Smart Life 832.0 833.8 425.2 408.5 Smart Workplace 1,462.0 1,431.8 732.1 699.6 Brand Business 304.0 423.5 211.6 211.8 Display Device 1,766.0 1,855.3 943.7 911.5 Subtotal - 47.0 1.6 45.3 Others - 1,902.3 945.4 956.8 Total 4.0 -9.5 -2.9 -6.5 Adjustments 1,770.0 1,892.8 942.4 950.3 Consolidated total S-4 (Billions of Yen) *Sales include inter-segment sales and transfers. FY2026 FY2025 Fiscal Year Forecast Fiscal Year Second Half First Half 25.0 28.4 15.1 13.2 Smart Life (4.0%) (4.8%) (4.9%) (4.6%) 42.0 57.5 24.6 32.9 Smart Workplace (5.0%) (6.9%) (5.8%) (8.1%) 67.0 86.0 39.7 46.2 Brand Business (4.6%) (6.0%) (5.4%) (6.6%) -12.0 -18.2 -9.5 -8.7 Display Device (-3.9%) (-4.3%) (-4.5%) (-4.1%) 55.0 67.7 30.2 37.5 Subtotal (3.1%) (3.7%) (3.2%) (4.1%) - 0.6 -0.5 1.2 Others (1.5%) (-31.6%) (2.7%) - 68.4 29.7 38.7 Total (3.6%) (3.1%) (4.0%) -25.0 -19.9 -10.1 -9.7 Adjustments 30.0 48.5 19.6 28.9 Consolidated total (1.7%) (2.6%) (2.1%) (3.0%) Operating Profit by Segment S-5 (Billions of Yen) *Sales include inter-segment sales and transfers.
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Quarterly Sales by Segment FY2026 FY2025 Q1 Q4 Q3 Q2 Q1 144.0 149.6 157.1 150.7 140.3 Smart Life 200.8 217.7 207.5 219.1 189.3 Smart Workplace 344.9 367.4 364.7 369.9 329.7 Brand Business 91.3 108.0 103.5 102.6 109.2 Display Device 436.2 475.4 468.2 472.5 439.0 Subtotal -0.8 0.8 7.2 38.0 Others 436.2 476.3 469.1 479.8 477.0 Total -1.0 -1.1 -1.7 -1.9 -4.5 Adjustments 435.2 475.1 467.3 477.8 472.4 Consolidated total S-6 (Billions of Yen) *Figures within parentheses indicate operating margin. Quarterly Operating Profit by Segment FY2026 FY2025 Q1 Q4 Q3 Q2 Q1 3.7 6.7 8.4 6.4 6.8 Smart Life (2.6%) (4.5%) (5.4%) (4.2%) (4.9%) 10.7 10.8 13.7 18.7 14.2 Smart Workplace (5.3%) (5.0%) (6.6%) (8.6%) (7.5%) 14.4 17.5 22.2 25.1 21.0 Brand Business (4.2%) (4.8%) (6.1%) (6.8%) (6.4%) -2.1 -4.7 -4.8 -6.2 -2.5 Display Device (-2.4%) (-4.4%) (-4.6%) (-6.1%) (-2.3%) 12.2 12.8 17.3 18.9 18.5 Subtotal (2.8%) (2.7%) (3.7%) (4.0%) (4.2%) - -0.0 -0.5 -0.1 1.3 Others (-2.6%) (-58.8%) (-1.6%) (3.5%) 12.2 12.8 16.8 18.8 19.9 Total (2.8%) (2.7%) (3.6%) (3.9%) (4.2%) -4.0 -5.2 -4.8 -5.1 -4.6 Adjustments 8.2 7.5 12.0 13.6 15.3 Consolidated total (1.9%) (1.6%) (2.6%) (2.9%) (3.2%) S-7 (Billions of Yen) *Figures within parentheses indicate operating margin.
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Quarterly Sales by Segment FY2026 FY2025 Q1 Q4 Q3 Q2 Q1 144.0 149.6 157.1 150.7 140.3 Smart Life 200.8 217.7 207.5 219.1 189.3 Smart Workplace 344.9 367.4 364.7 369.9 329.7 Brand Business 91.3 108.0 103.5 102.6 109.2 Display Device 436.2 475.4 468.2 472.5 439.0 Subtotal -0.8 0.8 7.2 38.0 Others 436.2 476.3 469.1 479.8 477.0 Total -1.0 -1.1 -1.7 -1.9 -4.5 Adjustments 435.2 475.1 467.3 477.8 472.4 Consolidated total S-6 (Billions of Yen) *Figures within parentheses indicate operating margin. Quarterly Operating Profit by Segment FY2026 FY2025 Q1 Q4 Q3 Q2 Q1 3.7 6.7 8.4 6.4 6.8 Smart Life (2.6%) (4.5%) (5.4%) (4.2%) (4.9%) 10.7 10.8 13.7 18.7 14.2 Smart Workplace (5.3%) (5.0%) (6.6%) (8.6%) (7.5%) 14.4 17.5 22.2 25.1 21.0 Brand Business (4.2%) (4.8%) (6.1%) (6.8%) (6.4%) -2.1 -4.7 -4.8 -6.2 -2.5 Display Device (-2.4%) (-4.4%) (-4.6%) (-6.1%) (-2.3%) 12.2 12.8 17.3 18.9 18.5 Subtotal (2.8%) (2.7%) (3.7%) (4.0%) (4.2%) - -0.0 -0.5 -0.1 1.3 Others (-2.6%) (-58.8%) (-1.6%) (3.5%) 12.2 12.8 16.8 18.8 19.9 Total (2.8%) (2.7%) (3.6%) (3.9%) (4.2%) -4.0 -5.2 -4.8 -5.1 -4.6 Adjustments 8.2 7.5 12.0 13.6 15.3 Consolidated total (1.9%) (1.6%) (2.6%) (2.9%) (3.2%) S-7 (Billions of Yen) *Figures within parentheses indicate operating margin.
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FY2026 FY2025 Fiscal Year Forecast Fiscal Year Second Half First Half 39.0 30.7 14.3 16.3 Capital Investment 10.0 10.6 4.4 6.1 Displays 35.0 29.6 14.6 15.0 Depreciation and Amortization 75.0 69.1 34.3 34.7 R&D Expenditures FY2026 FY2025 Avg. Exchange Rate Fiscal Year Forecast Fiscal Year Second Half First Half 160.00 150.78 155.51 146.04 US Dollar 183.00 174.79 181.52 168.06 Euro Capital Investment / Depreciation and Amortization, etc. S-8 (Billions of Yen) (Yen) FY2026 FY2025 Q1 Q4 Q3 Q2 Q1 4.8 7.7 6.6 11.1 5.1 Capital Investment 0.8 2.3 2.1 4.9 1.2 Displays 7.4 7.4 7.2 7.4 7.5 Depreciation and Amortization 16.2 17.7 16.6 17.7 17.0 R&D Expenditures FY2026 FY2025 Avg. Exchange Rate Q1 Q4 Q3 Q2 Q1 159.49 156.87 154.15 147.48 144.60 US Dollar 185.38 183.65 179.39 172.31 163.81 Euro QuarterI ｙ Capital Investment, Depreciation and Amortization, etc. S-9 (Billions of Yen) (Yen)
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FY2026 FY2025 Fiscal Year Forecast Fiscal Year Second Half First Half 39.0 30.7 14.3 16.3 Capital Investment 10.0 10.6 4.4 6.1 Displays 35.0 29.6 14.6 15.0 Depreciation and Amortization 75.0 69.1 34.3 34.7 R&D Expenditures FY2026 FY2025 Avg. Exchange Rate Fiscal Year Forecast Fiscal Year Second Half First Half 160.00 150.78 155.51 146.04 US Dollar 183.00 174.79 181.52 168.06 Euro Capital Investment / Depreciation and Amortization, etc. S-8 (Billions of Yen) (Yen) FY2026 FY2025 Q1 Q4 Q3 Q2 Q1 4.8 7.7 6.6 11.1 5.1 Capital Investment 0.8 2.3 2.1 4.9 1.2 Displays 7.4 7.4 7.2 7.4 7.5 Depreciation and Amortization 16.2 17.7 16.6 17.7 17.0 R&D Expenditures FY2026 FY2025 Avg. Exchange Rate Q1 Q4 Q3 Q2 Q1 159.49 156.87 154.15 147.48 144.60 US Dollar 185.38 183.65 179.39 172.31 163.81 Euro QuarterI ｙ Capital Investment, Depreciation and Amortization, etc. S-9 (Billions of Yen) (Yen)
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Forward-Looking Statements This presentation contains certain statements about the future plans, strategies, and performance of Sharp Corporation and its consolidated subsidiaries (“the Company” or “Sharp”). Statements not based on historical or present facts are assumptions and estimates based on information available at the time. Future plans, strategies, and performance are subject to known and unknown risks, uncertainties, and other factors. Actual performance, business activities, and financial position may differ materially from the assumptions and estimates provided herein due to risks, uncertainties, and other factors. Sharp is under no obligation to update these forward-looking statements in light of new information, future events, or other factors. Risks, uncertainties, and other matters that could affect actual results include, but are not limited to the following factors: (1) The economic conditions in which Sharp operates (2) Sudden, rapid fluctuations in demand for Sharp products and services, as well as intensified price competition (3) Exchange rate fluctuations (particularly between the yen and the U.S. dollar, the euro, and other currencies) (4) Regulations, including trade restrictions with other countries (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. *Year-on-year change has been calculated based on 100 million yen units. Percentage change has been calculated based on actual figures. *Bottom-line profit: Profit attributable to owners of parent *Segment Name Abbreviations etc.: Smart Life: SL Smart Workplace: SW Display Device: DD Others : SDP , camera module business, and semiconductor business
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Forward-Looking Statements This presentation contains certain statements about the future plans, strategies, and performance of Sharp Corporation and its consolidated subsidiaries (“the Company” or “Sharp”). Statements not based on historical or present facts are assumptions and estimates based on information available at the time. Future plans, strategies, and performance are subject to known and unknown risks, uncertainties, and other factors. Actual performance, business activities, and financial position may differ materially from the assumptions and estimates provided herein due to risks, uncertainties, and other factors. Sharp is under no obligation to update these forward-looking statements in light of new information, future events, or other factors. Risks, uncertainties, and other matters that could affect actual results include, but are not limited to the following factors: (1) The economic conditions in which Sharp operates (2) Sudden, rapid fluctuations in demand for Sharp products and services, as well as intensified price competition (3) Exchange rate fluctuations (particularly between the yen and the U.S. dollar, the euro, and other currencies) (4) Regulations, including trade restrictions with other countries (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. *Year-on-year change has been calculated based on 100 million yen units. Percentage change has been calculated based on actual figures. *Bottom-line profit: Profit attributable to owners of parent *Segment Name Abbreviations etc.: Smart Life: SL Smart Workplace: SW Display Device: DD Others : SDP , camera module business, and semiconductor business