Notice Regarding Acquisition of Equity Interests of SAIGON STEC CO., LTD. (Making it Sharp's Subsidiary) (PDF:266KB)

[Translation]

Company Name: Sharp Corporation Representative: J.W. Tai

April 27, 2017

President & Chief Executive Officer (Code No. 6753)

Sharp Corporation ("Sharp") announces today that it has decided to acquire 51% of equity interests of SAIGON STEC CO., LTD. ("SSTEC"), thereby making SSTEC Sharp's subsidiary.

1. Background of the acquisition of equity interests

   Under the new management system established in August 2016, Sharp held up its policy of "One SHARP", which aims at heightening its overall strength by enabling all of its businesses to cooperate with each other; and declared its management policy to the effect that Sharp satisfies the expectations of various stakeholders through expanding its business. Furthermore, Sharp established a new corporate motto of "Be Original.", to which Sharp defines it as to provide each customer with products and services that are overflowing with Sharp's originality, inheriting its founding spirit of "Sincerity and Creativity".

   In addition, Sharp performs various reviews in order to increase each business' profitability, to achieve a surplus as soon as possible to ensure a stable growth trajectory. Above all, Sharp seeks to strengthen key technologies through contribution, in-house production, and others, aiming to strengthen Sharp's "original technologies", which is the source of competitiveness of Sharp in order to consolidate the brand image of the "technological leader".

   Under these circumstances, Sharp has decided to acquire 51% of equity interests of SSTEC from Sharp Takaya Electronic Industry Co., Ltd. ("Sharp Takaya"), thereby making SSTEC Sharp's subsidiary. SSTEC has been manufacturing camera modules in a Vietnamese subsidiary of Sharp Takaya, which has been in collaborative relationships with Sharp for many years. Accordingly, Sharp is planning to reinforce the cost competitiveness in the camera modules businesses, whose markets are expected to expand along with smartphones and tablet terminals.

2. Outline of the subsidiary to be changed

   (i)	Name	SAIGON STEC Co., LTD.
   (ii)	Location	VSIP2, Hoa Phu Ward, Thu Dau Mot City, Binh Duong Province, Vietnam
   (iii)	Title and Name of Representative	Hisao Seo
   (iv)	Details of Business	Manufacturing camera modules
   (v)	Capital	6,100,000 USD
   (vi)	Date of Establishment	September 10, 2007
   (vii)	Investor and Investment Percentage	Sharp Takaya, 100%
   (viii)	Relationship between the Listed Company and the Relevant Company
   Capital Relationship	Sharp holds 40% of shares of Sharp Takaya, which is the parent company of the relevant company.
   Personnel Relationship	There is no personnel relationship that needs to be stated between Sharp and the relevant company.

   Transaction Relationship	Sharp outsources the manufacturing of camera modules to Sharp Takaya, which is the parent company of the relevant company. In addition, Sharp Takaya outsources the manufacturing of camera modules to the relevant company.
   (ix)	Results of Operations and Financial Conditions of the Relevant Company in the Previous Three Fiscal Years
   Fiscal Year Ended	Fiscal year ended March, 2014	Fiscal year ended March, 2015	Fiscal year ended March, 2016
   Net Assets	13,024,984 USD	37,320,568 USD	39,927,508 USD
   Total Assets	20,283,061 USD	246,371,667 USD	184,964,634 USD
   Net Assets per Share	-	-	-
   Proceeds of Sale	1,292,712,191 USD	1,602,574,360 USD	1,450,197,698 USD
   Operating Income or Operating Loss (-)	2,568,901 USD	13,472,273 USD	-4,018,294 USD
   Ordinary Income	13,714,215 USD	17,294,597 USD	2,747,451 USD
   Net Income	10,636,891 USD	13,621,752 USD	2,606,941 USD
   Net Income per Share	-	-	-
   Dividend per Share	-	-	-

3. Outline of the other party of the share acquisition

   (i)	Company Name	Sharp Takaya Electronic Industry Co., Ltd.
   (ii)	Location	3121-1 Satomi, Satosho-cho, Asakuchi-gun, Okayama
   (iii)	Title and Name of Representative	President, Yoji Oshimo
   (iv)	Details of Business	Manufacture, Inspection, and Sale of Semiconductor IC Devices and IC Modules, Development of Semiconductor-Related Equipment, Development of Imaging Devices, and Development, Manufacture, and Sale of LSI Design and Evaluation Boards
   (v)	Capital	310 million yen
   (vi)	Date of Establishment	August 15, 1979
   (vii)	Net Assets	12,930 million yen (as of March 31, 2016)
   (viii)	Total Assets	30,683 million yen (as of March 31, 2016)
   (ix)	Major Shareholders and Shareholding Percentage	TAKAYA Corporation, 60%; Sharp, 40%
   (x)	Relationship between the Listed Company and the Relevant Company
   Capital Relationship	Sharp holds 40% of shares of the relevant company.
   Personnel Relationship	Sharp dispatches five officers to the relevant company.
   Transaction Relationship	Sharp outsources the manufacturing of camera modules to the relevant company.
   Status as a Related Party	The relevant company is an affiliated company of Sharp, and it corresponds to the related party.

4. Equity interests to be acquired, acquisition price, and the status of equity interests held before and after the acquisition

6. Future outlook

The impact of this transaction on Sharp's results will be minor.

End.