Notice Regarding Dissolution of Subsidiary (Joint Venture Company) (PDF:35KB)

[Translation]

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

February 9, 2017

President & Chief Executive Officer (Code No. 6753)

Sharp Corporation ("Sharp") announces today that it has decided to dissolve SD Future Technology Co., Ltd. ("SDFT"), a subsidiary of Sharp and a joint venture company with Dai Nippon Printing Co., Ltd.

1. Background of the dissolution

   Sharp established SDFT in 2006 as a joint venture company with Dai Nippon Printing Co., Ltd., for the purpose of the development of the color filter for the liquid crystal display panel and the transfer of the developed technology to the production line. Since then, SDFT has performed the research, development, and design as well as technology transfer to the production line; however, as Sharp believes that the original purpose has now been achieved, it has decided to dissolve SDFT.

   By utilizing its accumulated expertise, Sharp will further proceed with higher definition and price reductions of the color filter for the liquid crystal display panel.

2. Outline of the joint venture company to be dissolved

3. Details of the business

   Development of the color filter for the liquid crystal display panel and the transfer of the developed technology to the production line.

4. Outline of the joint venture company

(i)	Name	SD Future Technology Co., Ltd.
(ii)	Location	464 Kohgawa, Shiraki-cho, Kameyama City, Mie
(iii)	Title and Name of Representative	President & Chief Executive Officer, Mitsuhiro Hayami
(iv)	Details of Business	Research, development and design, etc., of materials and components incidental or relating to electric equipment and apparatuses.
(v)	Capital	150 million yen
(vi)	Date of Establishment	August 1, 2006
(vii)	Fiscal Year End	March 31
(viii)	Major Shareholders and Shareholding Percentage	Sharp 50.1%, Dai Nippon Printing Co., Ltd. 49.9%
(ix)	Relationship Between the Listed Company and the Relevant Company
Capital Relationship	Sharp holds 50.1% of the relevant company's shares.
Personnel Relationship	Sharp dispatches two persons as directors of the relevant company.
Transaction Relationship	There is no transaction relationship that needs to be stated between Sharp and the relevant company.

Status as a Related Party	Sharp is a parent company of the relevant company. Therefore, the relevant company falls under the category of a related party of Sharp.
(x)	Results of Operations and Financial Conditions of the Relevant Company for Previous Three Fiscal Years
Fiscal Year Ended	Fiscal year ended March, 2014	Fiscal year ended March, 2015	Fiscal year ended March, 2016
Net Assets	182,009 thousand yen	182,386 thousand yen	182,357 thousand yen
Total Assets	184,361 thousand yen	184,815 thousand yen	184,307 thousand yen
Net Assets per Share	60,669.79 yen	60,795.35 yen	60,785.77 yen
Proceeds of Sale	3,183 thousand yen	3,234 thousand yen	2,002 thousand yen
Operating Income	1,306 thousand yen	1,012 thousand yen	430 thousand yen
Ordinary Income	1,306 thousand yen	1,015 thousand yen	430 thousand yen
Net Income or Net Loss (-)	-326 thousand yen	377 thousand yen	-29 thousand yen
Net Income or Net Loss (-) per Share	-108.52 yen	125.56 yen	-9.58 yen
Dividends per Share	-	-	-

5. Outline of the counterparty of the joint venture agreement

(i)	Name	Dai Nippon Printing Co., Ltd.
(ii)	Location	1-1-1, Ichigaya-Kagacho, Shinjuku-ku, Tokyo
(iii)	Title and Name of Representative	President, Yoshitoshi Kitajima
(iv)	Details of Business	Printing and other business
(v)	Capital	114,464 million yen
(vi)	Date of Establishment	October 9, 1876
(vii)	Major Shareholders and Shareholding Percentage	The Master Trust Bank of Japan, Ltd. (Trust Account) 7.18% Japan Trustee Services Bank, Ltd. (Trust Account) 5.25% The Dai-ichi Life Insurance Company, Limited 4.65%
(viii)	Relationship Between the listed company and the relevant company
Capital Relationship	The relevant company holds 1,011,140 shares in common stock of Sharp. Sharp holds 702,000 shares in common stock of the relevant company.
Personnel Relationship	There is no personnel relationship that needs to be stated between the relevant company and Sharp.
Transaction Relationship	Sharp purchases products from the relevant company.
Status as a Related Party	The relevant company does not fall under the category of a related party of Sharp.
(ix)	Consolidated Results of Operations and Consolidated Financial Conditions of the Relevant Company for Previous Three Fiscal Years
Fiscal Year Ended	Fiscal year ended March, 2014	Fiscal year ended March, 2015	Fiscal year ended March, 2016
Consolidated Net Assets	976,386 million yen	1,124,093 million yen	1,063,241 million yen
Consolidated Total Assets	1,574,753 million yen	1,809,462 million yen	1,718,636 million yen
Consolidated Net Assets per Share	1,447.96 yen	1,675.63 yen	1,618.66 yen

Consolidated Net Sales	1,448,550 million yen	1,462,118 million yen	1,455,916 million yen
Consolidated Operating Income	50,098 million yen	48,173 million yen	45,471 million yen
Consolidated Ordinary Income	53,285 million yen	53,759 million yen	52,651 million yen
Net Income Attributable to Owners of Parent	25,641 million yen	26,923 million yen	33,587 million yen
Consolidated Net Income per Share	39.82 yen	41.82 yen	53.10 yen
Dividends per Share	32.00 yen	32.00 yen	32.00 yen

4.	Schedule
(1)	Date of decision	February 9, 2017
(2)	Date of dissolution	Late February, 2017 (to be fixed)
(3)	Date of completion of liquidation	May, 2017 (to be fixed)
5.	Future outlook

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

End