Tokyo, November 27, 2007 - The SANYO Group (SANYO) announces a new 'Mid-term Business Strategy" (hereinafter 'Master Plan'), in preparation for a new three-year 'Mid-term Management Plan' which will be outlined in more detail at a future date for the period of fiscal year (FY) 2008 to FY 2010.
SANYO, as outlined in its current 'Mid-term Management Plan' implemented from FY 2005 to FY 2007, has been focusing on structural transformation aimed at revitalizing and reforming the company and, as a result, the fruits of these activities are certainly beginning to show in earning power, financial strength, etc. Looking forward to the next three-year period, SANYO will be fully revitalized as it makes advances to furthering its aim to become a truly global company, based on the 'Master Plan'.
The 'Master Plan' is a summary of the future direction of the SANYO Group and includes: 1) management goals set in the new 'Mid-term Management Plan', 2) emphasized and concentrated investments based on Group-wide business strategy, 3) improve earning power of the finished goods business and creating the necessary structure to strengthen business expansion overseas, 4) maintain a sound financial structure through thorough cash flow management.
Based on the objectives outlined in the 'Master Plan', SANYO will create a new three-year 'Mid-term Management Plan'. In the new plan, each business will be converted into a profitable business entity, enabling SANYO to grow and progress as it becomes a truly global company.
The specifics for the 'Master Plan' are listed below.

Establish the foundation for a highly profitable company capable of regaining public trust and reputation while becoming 'a leading provider of Environment- and Energy-related products'.

1. Set a goal/challenge to achieve 100 billion yen or more in consolidated operating profit by the end of FY 2010.
   *(Must Accomplish Goal) Consolidated sales of 2,250 billion yen, consolidated operating profit of 90 billion yen (operating profit ratio of 4%)
2. In 1,000 days (three years), convert each business into a profitable business entity.

1. Business Grouping

SANYO will classify its group business fields into the following three categories according to the business direction and associated technology: 'Energy', 'Electronics', and 'Ecology'. These three business areas will become the engine for fulfilling the revitalization of SANYO, and pave the way for the challenge of FY 2010 to be the most profitable year in SANYO's history.


2. Image of Overall Business Strategy

3. Individual Business Strategy

Considering the company's customers, the marketplace, and various business models, etc. from an overall Group Management Strategy point of view, the company will divide its business fields into two groups: the 'Component Business Group' and the 'Finished Goods Business Group'. Business strategies applicable to either group will be implemented.



-Component Business Group-

Over three years, a facilities investment of 350 billion yen will be conducted; however, approximately 70% of these investments will be concentrated on rechargeable batteries, solar, and electronic devices.

Rechargeable battery business

Implement an investment of an approximately 100 billion yen over the next three years to expand lithium-ion battery production capacity and challenge the HEV market in earnest in the near future, aiming for further growth.

Solar business

Implement an investment total of approximately 80 billion yen over the next three years, and increase production capacity by 2010 to 650 MW.

Electronic device business

Emphasize investments in top share products such as condensers, optical pickups, vibration motors (for mobile handsets), etc.

Semiconductor business

Through the fruits of structural transformation, it has been converted into a unit able to produce a positive operating profit; however, in order to hereafter create a stable revenue base, SANYO will make use of its proprietary know-how in analog technology and the like to further streamline and improve operations.



-Finished Goods Business Group-

SANYO will pursue the optimization of domestic businesses and strengthening overseas expansion to stabilize and secure profit. As for strengthening overseas expansion and development, along with setting sales goals of SANYO-branded finished goods, an executive-class staff member will be placed in each region overseas, enabling the global sales structure to be made more robust.

Digital business

Strengthen business-to-business operations (OEM, etc.) and other special client arrangements.

Commercial business

Along with increasing profitability by pursuing thorough optimization in the domestic market, resources will be shifted to focus on opportunities overseas to expand and grow the business.

White goods/Home electronics business

Along with strengthening product appeal based on SANYO's unique technology such as those related to the environment, sales and distribution costs will be reevaluated, and through optimizing sales companies and sales networks overseas, the sales division will be able to act more effectively, raising profitability.

4. Financial Strategy

With the efforts made over the past three years to achieve financial stability, interest-bearing debt is expected to be reduced to 530 billion yen by March 2008, 720 billion yen down from the first half of FY 2005. SANYO will enhance its efforts toward cash flow-focused management over the next three years.

SANYO Electric Co., Ltd.
Global Communications Department
Tel:+81-3-6414-8615 Fax: +81-3-6414-8720
E-mail: i_press.1014390@sanyo.co.jp