Notice Regarding Expected Posting of Extraordinary Loss

Overview of Extraordinary Loss (Restructuring Expenses)

Sharp Corporation revised part of the policy announced in its mid-term management plan in May 2025 and expects to record a total of 14.9 billion yen in restructuring expenses as extraordinary losses in the consolidated financial statements for the fiscal year ending March 2026 and subsequent periods. This includes 12.0 billion yen for production suspension costs at the Kameyama No. 2 plant due to the failed transfer to Hon Hai Precision Industry, 2.2 billion yen for business closure costs at Sakai Display Products Co., Ltd. due to the failed technology transfer to a major Indian LCD company, and 0.7 billion yen for business closure costs at Sharp Yonago Co., Ltd. Of these, 12.9 billion yen is planned to be recorded in the fiscal year ending March 2026.

Impact on Performance and Future Outlook

Net sales and operating income for the current period are progressing as expected, and non-operating income and expenses are expected to improve from previous assumptions. Therefore, even after incorporating the restructuring expenses posted this time, the company expects to achieve the previously disclosed earnings guidance for net income attributable to owners of the parent. For details, please refer to the 'Financial Summary for the Third Quarter of Fiscal 2026 (Japanese GAAP) (Consolidated)' released on February 10, 2026, and the supplemental materials.