For Reference Only:SANYO Continues Journey to Profitability in FY 2007 | News Releases

27. Nov, 2007

For Reference Only:
SANYO Continues Journey to Profitability in FY 2007
SANYO Electric Co., Ltd. Consolidated Financial Results
for the First Half of Fiscal Year 2007

Tokyo, November 27, 2007 - SANYO Electric Co., Ltd. (SANYO) announces its consolidated results for the first half of fiscal year 2007 (April 1, 2007 to Sep. 30, 2007).

The first half of fiscal year 2007 ended with consolidated net sales of 1,091.4 billion yen, a decrease 0.4% from the same period of last year. Domestic sales decreased by 16.2%, ending at 403.5 billion yen, over the same period last year, due in part because of the decline in mobile phones and commercial equipment such as industrial kitchen appliances and medical equipments in addition to the weak sales of white goods. Overseas sales increased by 12%, totaling 688.0 billion yen, over the same period last year, thanks to digital cameras and projectors, commercial-use air conditioning and showcase systems, and a favorable lithium-ion and solar battery markets.

Operating profit was up 50.3%, to 23.8 billion yen, over the same period last year, through cost reductions and stronger sales in the digital camera and components businesses, despite increases in raw materials' cost. Profit before tax surged 243% to 24.1 billion yen, compared to the same period last year, from a reduction in debt bearing interest and gains on the sale of SANYO's share in SANYO Electric Credit. The net profit for the first half was 16.0 billion yen, a large improvement from a negative balance at the same time last year.

Seiichiro Sano, President of SANYO, commented, "The first half ended with higher-than-expected sales, operating profit, profit before tax, and net profit. Also, there is elevated awareness globally of the environment, which will allow us greater opportunities to expand business in our aim to become a 'leading provider of Environment- and Energy-related products." He also added, "A new three-year 'Mid-term Management Plan' is being created, which will help make SANYO a new global company with sustainable growth."

SANYO has been aiming to revitalize and reform itself through structural transformations carried out from the Mid-term Management Plan in effect from fiscal year 2005 through fiscal year 2007. Emphasized investment of management resources on core businesses will be implemented and further structural transformations carried out by the end of this fiscal year (FY2007).

The forecast for FY 2007 has been amended from the original forecast announced on May 28, 2007 as below.

	Consolidated	Non-Consolidated
Net sales:	￥2,230,000 million (￥2,230,000 million)	￥1,430,000 million (￥1,450,000 million)
Operating profit:	￥50,000 million ( ￥45,000 million)	￥15,000 million (￥10,000 million)
Income before income taxes and minority interests/ Ordinary profit:	￥32,000 million (￥32,000 million)	￥1,500 million (￥1,500 million)
Net income:	￥20,000 million (￥20,000 million)	￥15,000 million (￥15,000 million)

*The numbers inside ( ) were the forecasts as of May 28, 2007.
**The forecasts above are based on assumptions deemed reasonable at the time they were prepared, actual results may differ significantly from forecasts. Actual results may be influenced but not limited to changes in political and economic regions, increased material costs and fluctuations in the foreign exchange markets.

For Press Contact:(English Only)

Global Communications Department Corporate Communications Headquarters SANYO Electric Co., Ltd. Tel:+81-3-6414-8615 Fax: +81-3-6414-8720 E-mail: i_press.1014390@sanyo.co.jp URL: http://www.sanyo.com

1. Consolidated results (Unaudited) 　　　　　　　　　　　　　　　　　　　(Unit: Millions of Yen)

	For the mid-term ended Sep.30, 2007	Change from the previous term	For the mid-term ended Sep.30, 2006	For the FY 2006 ended Mar.31, 2007
Net sales	1,091,438	-0.4%	1,095,539	2,215,434
Operating income (loss)	23,811 (2.2%)	50.3%	15,841 (1.4 %)	49,568 (2.2%)
Income (loss) before income taxes and minority interest	24,113 (2.2%)	243.0%	7,031 (0.6 %)	(13,070) (-0.6%)
Net income (loss)	15,981 (1.5%)	-	(3,618) (-0.3 %)	(45,362) (-2.0%)
Net income (loss) per share	2.60 yen		(34.90 yen)	(72.66 yen)

1. SANYO’s consolidated financial statements are based on U.S. GAAP accounting standard.
2. Operating profit and segment based information is prepared using Japan’s standard.
3. The number of consolidated subsidiaries 195, and affiliates 64.
4. Percentage figures inside ( ) refer to the percentage to net sales.

2. Non-Consolidated results (Unaudited) 　　　　　　　　　　　　　　　　　(Unit: Millions of Yen)

	For the mid-term ended Sep.30, 2007	Change from the previous term	For the mid-term ended Sep.30, 2006	For the FY 2006 ended Mar.31, 2007
Net sales	694,319	16.9%	593,713	1,215,914
Operating income (loss)	9,041 (1.3%)	-	(11,661) (-2.0 %)	(16,377) (-1.3%)
Ordinary profit (loss)	5.082 (0.7%)	-	(8,899) (-1.5 %)	(21,276) (-1.7%)
Net income (loss)	20,999 (3.0%)	-	(14,571) (-2.5 %)	(57,144) (-4.7%)
Net income (loss) per share	3.42 yen		(2.37 yen)	(9.31 yen)

1. Figures inside ( ) refer to the percentage to net sales.

3. Consolidated Sales by Business Group Category (Unaudited) (Unit: Millions of Yen)

Product category		Mid-Term From April 1, 2007 To Sept. 30, 2007			Mid-Term From April 1, 2006 To Sept. 30, 2006		For the year ended Mar.31, 2007
Product category		Amount	Ratio to total	Change (%)	Amount	Ratio to total	Amount	Ratio to total
Consumer		471,785	43.3%	-4.4	493,540	45.0%	1,009,698	45.6%
Commercial		129,157	11.8%	-3.5	133,885	12.2%	270,553	12.2%
Component		472,026	43.2%	6.7	442,360	40.4%	875,114	39.5%
Others		18,470	1.7%	-28.3	25,754	2.4%	60,069	2.7%
Total		1,091,438	100.0%	-0.4	1,095,539	100.0%	2,215,434	100.0%
Break -down	Domestic sales	403,462	37.0%	-16.2	481,261	43.9%	953,713	43.0%
Break -down	Overseas sales	687,976	63.0%	12.0	614,278	56.1%	1,261,721	57.0%

4. Consolidated Statements of Income (Unaudited) (Unit: Millions of Yen)

Items

Mid-term FY 2007
From April 1, 2007
to September 30, 2007

Mid-term FY 2006
From April 1, 2006
to September 30, 2006

For the FY 2006
ended
March 31, 2007

Amount

Ratio to net sales

Change (%)

Amount

Ratio to net sales

Amount

Ratio to net sales

Net sales

Operating revenue

Sales and operating
revenue

Cost of sales

Selling, general and
administrative expenses

Operating income

Other income

[Interest and dividends]

[Other]

Other expenses

[Interest]

[Other]

Income (Loss) before income taxes

Income taxes

1,091,438

51,534

1,142,972

942,740

176,421

100.0%

4.7

104.7

86.4

16.1

-0.4%

12.2%

0.1%

-4.0%

1,095,539

45,922

1,141,461

941,851

183,769

100.0%

4.2%

104.2%

86.0%

16.8%

2,215,434

93,194

2,308,628

1,899,695

359,365

100%

4.2%

104.2%

85.8%

16.2%

23,811

31,771

[4,847]

[26,924]

31,469

[8,749]

[22,720]

2.2

2.9

50.3%

22.6%

-9.4%

15,841

25,923

[3,637]

[22,286]

34,733

[10,038]

[24,695]

1.4%

2.4%

3.2%

49,568

40,165

[8,013]

[32,152]

102,803

[20,720]

[82,083]

2.2%

1.8%

4.6%

24,113

6,526

2.2

0.6

243.0%

-36.4%

7,031

10,263

0.6%

0.9%

(13,070)

28,516

-0.6%

1.3%

Income (Loss) before minority interests

Minority interests

17,587

1,606

1.6

0.1

316.1%

(3,232)

386

-0.3%

0.0%

(41,586)

3,776

-1.9%

0.1%

Net income (loss)

15,981

1.5

(3,618)

-0.3%

(45,362)

-2.0%

5. Consolidated Balance Sheet (Unaudited) (Unit: Millions of Yen)

Items	As of Sep.30, 2007	As of Sep.30, 2006	As of March 31, 2007
(Assets) Current assets Cash Time deposits Restricted cash Valuable securities Receivables: Notes and accounts Affiliates & unconsolidated subsidiaries 　Allowance for doubtful accounts 　Inventories 　Deferred income taxes Other Total Investment and advances: Affiliates and unconsolidated subsidiaries Other Total Property, plant & equipment: Building Machinery and equipment Accumulated depreciation Land Construction in progress Total Deferred income taxes Other assets	150,892 172,793 27,400 795 473,101 29,276 (7,453) 338,938 7,314 62,057 1,255,113 50,899 42,781 93,680 403,574 844,764 (882,226) 91,916 11,164 469,192 14,027 66,284	148,199 191,972 192,000 498 455,343 22,695 (5,847) 375,049 10,734 63,619 1,454,262 52,111 88,193 140,304 418,133 909,886 (957,324) 94,865 13,668 479,228 10,802 53,083	148,382 186,304 88,000 672 453,999 21,117 (7,493) 329,108 5,850 62,271 1,288,210 49,180 84,045 133,225 401,796 867,425 (901,604) 91,605 9,557 468,779 13,921 66,805
Total Assets	1,898,296	2,137,679	1,970,940
(Liabilities) Current liabilities Short-term borrowings Current portion of long term debt Notes and accounts payable: Trade 　Affiliates & unconsolidated subsidiaries Construction Accrued income tax Employees’ savings deposits Other Total current liabilities Corporate bond and long-term debt Accrued pension and severance costs Deferred income taxes Total liabilities Minority interests in Consolidated subsidiaries (Stockholders’ equity) Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total Treasury stock Total stockholders’ equity	210,014 93,673 434,159 6,544 31,307 7,120 11,777 242,122 1,036,716 297,080 200,761 8,145 1,542,702 26,489 322,242 781,951 (617,339) (150,056) 336,798 (7,693) 329,105	249,380 143,602 448,135 11,611 18,771 9,391 13,562 246,058 1,140,510 399,867 188,465 6,891 1,735,733 15,804 293,361 753,466 (534,199) (119,032) 393,596 (7,454) 386,142	219,785 155,221 406,577 6,118 20,424 8,997 12,202 245,564 1,074,888 340,698 211,173 8,327 1,635,086 23,846 322,242 781,951 (633,315) (151,174) 319,704 (7,696) 312,008
Total liabilities, minority interests and stockholders’ equity	1,898,296	2,137,679	1,970,940

6. Consolidated Statement of Cash Flows (Unaudited) (Unit: Millions of Yen)

Items	For the 1H period ended Sep.30, 2007	For the 1H period ended Sep.30, 2006	FY 2006 ended March 31, 2007
1. Cash flows from operating activities Net income (loss) Adjustments for cash flows Depreciation and amortization Impairment loss on fixed assets Decrease (increase) in receivables Decrease (increase) in inventories Increase in notes & accounts payable Other, net	15,981 43,744 850 (26,953) (7,948) 27,767 (23,809)	(3,618) 48,825 3,914 542 (52,319) 42,444 (17,229)	(45,362) 94,887 9,882 134 (19,219) 3,402 (51,248)
Net cash provided by operating activities	29,632	22,559	(7,524)
2. Cash flows from investing activities Decrease (Increase) in marketable securities and investment securities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Other, net	39,188 (28,080) 2,610 (1,709)	7,315 (35,930) 26,784 869	16,448 (66,607) 34,661 (1,368)
Net cash (used) in investing activities	12,009	(962)	(16,866)
3. Cash flows from financing activities Decrease in short term borrowing Decrease in long-term debt Withdrawal from restricted cash Dividends paid Other, net	(9,741) (103,474) 60,600 (563) 1,281	(17,223) (35,587) 72,800 (376) (31)	(39,155) (74,764) 176,800 (730) (149)
Net cash provided (used) in financing activities	(51,897)	19,583	62,002
4. Effect of exchange rate changes on cash & cash equivalents	(745)	1,491	(426)
5. Net (decrease) increase in cash & cash equivalents	(11,001)	42,671	37,186
6. Cash & cash equivalents at beginning 7. Cash & cash equivalents at end	334,686 323,685	297,500 340,171	297,500 334,686

7. Consolidated Segment Information 　　　　　　　　　　　　　　　 (Unit: Millions of Yen)

Items		For the 1H period ended Sep.30, 2007		For the 1H period ended Sep.30, 2006		FY 2006 ended March 31, 2007
Items		Amount	Ratio (%)	Amount	Ratio (%)	Amount	Ratio (%)
Net sales & operating revenue	Consumer	474,683	41.0	501,778	43.1	1,017,662	43.3
	Commercial	130,575	11.3	132,283	11.4	275,358	11.7
	Component	480,419	41.5	455,929	39.2	900,673	38.4
	Others	71,554	6.2	73,538	6.3	154,589	6.6
	Sub-total	1,157,231	100.0	1,163,528	100.0	2,348,282	100.0
	Corporate & eliminations	(14,259)	-	(22,067)	-	(39,654)	-
Total		1,142,972	-	1,141,461	-	2,308,628	-

Operating income (loss)	Consumer	(493)	-1.3	(3,914)	-11.7	(1,673)	-2.0
	Commercial	2,294	5.9	7,193	21.5	14,481	17.1
	Component	35,832	91.7	28,793	86.0	67,607	79.6
	Others	1,450	3.7	1,402	4.2	4,515	5.3
	Sub-total	39,083	100.0	33,474	100.0	84,930	100.0
	Corporate & eliminations	(15,272)	-	(17,633)	-	(35,362)	-
Total		23,811	-	15,841	-	49,568	-

(Notes)
1. Contents of Business Segment

Consumer:	TVs, VCRs, DVD Players, LCD Projectors, Audio Equipment, Digital Cameras and Telephones, Refrigerators, Air Conditioners, Washing Machines and Microwave Ovens.

Commercial:	Showcases, Package-Type Air Conditioners and Absorption Chiller / Heaters.

Components:	Semiconductors and Electronic Components, Primary batteries, Rechargeable batteries and Solar batteries.

Others:	Distribution and Maintenance.

2. Basic R&D expenses and corporate office expenses are included in the item of "Corporate and eliminations" as unallocated expenses.

8. Segment by Geographical Location 　　　　　　　　　　　　　　　　 (Unit: Millions of Yen)

Items		Mid-term FY 2007 (From April 1, 2007 to Sep. 30, 2007)		Mid-term FY 2006 (From April 1, 2006 to Se. 30, 2006)		FY 2006 (From April 1, 2006 to March 31, 2007)
Items		Amount	Ratio (%)	Amount	Ratio (%)	Amount	Ratio (%)
Net sales & operating revenue	Japan	894,907	50.4	969,820	54.6	1,962,039	54.5
	Asia	590,054	33.2	540,800	30.5	1,085,870	30.1
	North America	182,837	10.3	183,747	10.3	368,730	10.2
	Others	108,573	6.1	81,334	4.6	187,136	5.2
	Total	1,776,371	100.0	1,775,701	100.0	3,603,775	100.0
	Corporate and Eliminations	(633,399)	-	(634,240)	-	(1,295,147)	-
	Consolidated total	1,142,972	-	1,141,461	-	2,308,628	-
Operating income (loss)	Japan	27,896	68.5	19,512	58.9	57,722	69.4
	Asia	11,842	29.1	6,030	18.2	19,092	22.9
	North America	1,708	4.2	7,805	23.5	6,180	7.4
	Others	(732)	-1.8	(192)	-0.6	217	0.3
	Total	40,714	100.0	33,155	100.0	83,211	100.0
	Corporate and Eliminations	(16,903)	-	(17,314)	-	(33,643)	-
	Consolidated total	23,811	-	15,841	-	49,568	-

9. Overseas Net Sales 　　　　　　　　　　　　　　　　　　　　　　 (Unit: Millions of Yen)

Items	Mid-term FY 2007 (From April 1, 2007 to Sep. 30, 2007)		Mid-term FY 2006 (From April 1, 2006 to Sep. 30, 2006)		FY 2006 (From April 1, 2006 to March 31, 2007)
Items	Amount	Ratio (%)	Amount	Ratio (%)	Amount	Ratio (%)
Asia	352,180	30.8	313,931	27.5	650,544	28.2
North America	188,397	16.5	183,125	16.0	374,515	16.2
Europe	116,344	10.2	88,001	7.7	182,014	7.9
Others	34,847	3.0	31,754	2.8	61,646	2.7
Overseas net sales & operating revenue	691,768	60.5	616,811	54.0	1,268,719	55.0
Net sales & operating revenue	1,142,972	100.0	1,141,461	100.0	2,308,628	100.0

(Note) Change of classification in overseas net sales
The sales in Europe had been involved in “Others”. Hereafter, it will be shown individually as the amount of sales in the area is over 10% in the consolidated total sales.

For Reference Only: SANYO Continues Journey to Profitability in FY 2007 SANYO Electric Co., Ltd. Consolidated Financial Results for the First Half of Fiscal Year 2007

For Press Contact:(English Only)

For Reference Only:
SANYO Continues Journey to Profitability in FY 2007
SANYO Electric Co., Ltd. Consolidated Financial Results
for the First Half of Fiscal Year 2007