FOR IMMEDIATE RELEASE
April 25, 2008

Fiscal Year 2007 Consolidated Financial Results(April 1, 2007 to March 31, 2008)

FDK CORPORATION(URL: http://www.fdk.com)
Listing Code No.6955 (Listing Stock Exchange: The First Section of Tokyo Stock Exchange)
Address : Hamagomu Bldg. 5-36-11 Shimbashi, Minato-ku, Tokyo 105-8677
Date of the meeting of the Board of Directors to approve the consolidated accounts: April 25, 2008
Contact : Corporate Management Group, General Affairs and Management Planning Division
E-mail: niida@fdk.co.jp
U.S. GAPP is not applied
The Consolidated Financial Results is unaudited

1. Items Relevant to Preparation of Consolidated Financial Results(1)Changes in accounting methods: Yes
Depreciation method on the tangible fixed asset was changed according to the change in the corporate tax law.
(2)Changes in scope of consolidation or application of equity method: No(3)Number of shares outstanding at the end of the periods.
Year ended March 31, 2008

: 128,075,884

Year ended March 31, 2007

: 128,075,884

2.Consolidated Operating Results for the Fiscal Year 2007
a. Consolidated Results of Operations
Yen

U.S.Dollars(millions)
FY2007
Net Sales(millions)

FY2006

Change(%)

FY2007

113,668

121,537(6.5)

Operating Income

1,909

1,235

+54.6

$1,136.68$19.09

Income(Loss) Before Income Taxes(2,574)630-($25.74)(3,106)130-($31.06)(24.28) yen

1.02 yen-(24.28 cent)

-

-

-

-

and Minority Interests
Net Income (Loss)
Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings

b. Net Sales by Business Segment
Yen

U.S.Dollars(millions)
FY2007(millions)
FY2006

Change(%)

FY2007

Electronic Devices

86,325

94,123(8.3)

Batteries

27,343

27,414(0.2)$273.43

Total

113,668

121,537(6.4)$1,136.68

c. Consolidated Financial Position
Yen(millions)
2008/3/31

2007/3/31

Total Assets

65,27274,780Total Net Assets

2,571

6,845

Shareholders' Equity

3,771

6,879

Shareholders' Equity Ratio

3.9%

9.1%

(66.22) yen(32.86) yen

Shareholders' Equity
Per Share$863.25

d. Consolidated Statements of Cash FlowsYen(millions)
FY2007
Cash Flows from

FY2006990

2,686(2,708)(2,174)

2,083

730

7,217

7,529

Operating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents
at End of Period
Consolidated Subsidiaries

16 companies

Unconsolidated Subsidiaries (equity method applied)- companies

Affiliates (equity method applied only)

1 companies(Notes for the Consolidated Operating Results (from 2.a to 2.d))1. All amounts less than one million yen have been disregarded.
2. U.S. dollar aounts are translated from yen, for convenience only, at the rate of 100 yen=$1
3.The percentage in this statement presents rate of change compared with the same period last year.
3.Reference - FY2008 Consolidated Financial Forecast (April 1, 2008 - March 31, 2009)
Consolidated Financial Forecast(Million of yen, except per share data)
FY2008Change from FY2007(%)

Net Sales¥112,800(0.8)

Operating Income¥2,80046.7

Net Income

¥300

-

2.35 yen-

Net Income per Share

Note for the use of the above forecasted business results.
The forecast described above is based upon information available as of the present time. Actual results
may differ largely from the forecast due to changing conditions, potential risks and other uncertainties.

Consolidated Statements of Operations

Yen (millions)

Net sales

FY2007

FY2006(Apr'07-Mar'08)(Apr'06-Mar'07)¥¥

113,668

121,537

Operating costs and expenses
Cost of sales

100,813

109,562

Selling, general and administrative expenses

10,946

10,740111,759

120,302

1,909

1,235

Interest and dividend income

85

224

Equity in earnings (losses) of affiliates, net

2

72

(585)

(474)

(3,985)(427)(4,483)(605)(2,574)630

Current

491

462

Deferred

30

19

521

481

(3,095)

149

(11)

(19)

¥ ( 3,106)¥ 130

Operating income (loss)
Other income (expenses)

Interest charges
Other, net

Income (loss) before income taxes and minority interests
Income taxes

Income (loss) before minority interests
Minority interests in income of consolidates subsidiaries

Net income (loss)

Consolidated Balance Sheets
Yen (millions)
31-Mar-08

31-Mar-07

AssetsCurrent assets
Cash and time deposit
Notes receivable-trade
Accounts receivable-trade
Inventories
Deferred tax assets
Other current assets
Less: Allowance for doubtful receivable
Total current assets
Tangible fixed assets
Building and structures
Other depreciable assets
Land
Construction in progress
Total tangible fixed assets
Intangible assets
Investments and long-term loans
Securities investments
Deferred tax assets
Other investments and long-term loans
Total investments
Total assets¥ 7,227
1,794
23,923
6,131
142
2,925
(26)
42,116¥ 7,543
1,788
27,417
8,889
91
3,479
(35)
49,172

7,448
8,236
4,265
241
20,190
569

8,028
9,722
4,360
387
22,497
638

245
61
2,091
2,397

134
160
2,179
2,473

¥ 65,272¥ 74,780¥ 465
19,22730,810
564
221
4,978
56,265¥ 352
26,96928,199
1,384
281
4,440
61,625

456
5,920
60
6,436

721
5,499
90
6,310

62,701

67,93522,756
17,167(36,121)
(31)
3,771

22,756
17,167(33,015)
(29)
6,879

6
(0)
(1,248)(1,242)
42

20
(5)
(97)
(82)
48

2,571

6,845

¥ 65,272¥ 74,780

Liabilities
Current liabilities
Notes Payable-trade
Account payable-trade
Short-term borrowings
Current portion of long-term debt
Accrued income taxes
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Accrued retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings(Deficit)
Treasury stock
Total shareholders' equity
Valuation and translation ajustments
Unrealized gains (losses) on securities, net of taxes
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Total Valuation and translation ajustments
Minority interests in consolidated subsidiaries
Total net assets
Total liabilities and net assets

Consolidated Statements of Cash Flows

Yen (millions)
FY2007

FY2006(Apr'07-Mar'08)(Apr'06-Mar'07)¥ ( 2,573)

¥ 630

3,540

3,377

Equity in earnings of affiliates, net

(2)

(72)

(Increase) decrease in receivable-trade

1,925

1,875

(Increase) decrease in inventories

2,401

478

Increase (decrease) in payable-trade(5,948)(2,092)Other, net

2,619

(877)

Cash generated from operations

1,962

3,319

Interest paid

(529)

(406)

Interest and dividends received

108

239

Income taxes paid

(551)

(466)

990

2,686

(2,703)(2,884)

6

505

(14)

(11)

3

216

(2,708)(2,174)

Proceeds from long-term debt-

690

Repayment of long-term debt

(847)

(1,220)

Increase (decrease) in short-term borrowings

2,932

(188)

(2)

(12)

2,083

(730)

Effect of exchange rate changes on cash and cash equivalents

(677)

170

Net increase (decrease) in cash and cash equivalents

(312)

(48)

Cash and cash equivalents at beginning of year

7,529

7,577

¥ 7,217¥ 7,529

Cash flows from operating activities
Income (loss) before income taxes and minority interests
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities
Depreciation and amortization

Net cash provided by operating activities

Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Other, net
Net cash used in investing activities

Cash flows from financing activities

Other, net
Net cash provided by (used in) financing activities

Cash and cash equivalents at end of year

Consolidated Statements of Shareholders' Equity

FY2007 (Apr'07-Mar'08)
Yen (millions)Shareholders' Equity

Beginning balanceCommon stock

Capital surplus¥ 22,756¥ 17,167

Retainedearnings(Deficit)¥ ( 33,015)

Treasury stock

Total
shareholders'equity¥ ( 29)¥ 6,879

Increase(decrease)during the term:
Net income (loss)(3,106)

Acquisition of treasury stock(3,106)(2)(2)

Net increase(decrease)during theterm,except for items undershareholders'equity
Total
Ending balance--(3,106)(2)(3,108)¥ 22,756¥ 17,167¥ ( 36,121)¥ ( 31)¥ 3,771

Valuation and Translation Ajustments

Beginning balance

Unrealized gains(losses) on
securities, net of
taxes

Deferred
gains(losses) onhedgesForeign currencytranslation
adjustments

Total Valuationand translation
ajustments¥ 20¥ ( 5)¥ ( 97)¥ ( 82)

Minority interests
in consolidated
subsidiaries

Total Net Assets¥ 48¥ 6,845

Increase(decrease)during the term:
Net income (loss)(3,106)

Acquisition of treasury stock
Net increase(decrease)during theterm,except for items undershareholders'equity

(2)

(14)

5

(1,151)(1,160)(6)(1,166)

Total

(14)

5

(1,151)(1,160)(6)(4,274)Ending balance

¥ 6

¥ (0)

¥ ( 1,248)¥ ( 1,242)¥ 42¥ 2,571

FY2006 (Apr'06-Mar'07)
Yen (millions)Shareholders' Equity

Beginning balanceCommon stock

Capital surplus¥ 22,756¥ 17,167

Retainedearnings(Deficit)¥ ( 33,145)

Treasury stock

Total
shareholders'equity¥ ( 25)¥ 6,753

Increase(decrease)during the term:
Net income (loss)

130

Acquisition of treasury stock

130
(4)

(4)

Net increase(decrease)during theterm,except for items undershareholders'equity
Total
Ending balance

-

-

130

(4)

126

¥ 22,756¥ 17,167¥ ( 33,015)¥ ( 29)¥ 6,879

Valuation and Translation Ajustments
Unrealized gains(losses) on
securities, net oftaxes
Beginning balance¥ 22

Deferred
gains(losses) onhedges¥-Foreign currencytranslation
adjustments

Total Valuationand translation
ajustments¥ ( 435)¥ ( 413)

Minority interests
in consolidated
subsidiaries

Total Net Assets¥ 558¥ 6,898

Increase(decrease)during the term:
Net income (loss)

130

Acquisition of treasury stock
Net increase(decrease)during theterm,except for items undershareholders'equity
Total
Ending balance

(4)

(2)

(5)

338

331

(510)

(2)

(5)

338

331

(510)

(179)
(53)

¥ 20

¥ ( 5)¥ ( 97)¥ ( 82)¥ 48¥ 6,845

Consolidated Business Segment Information
Yen (millions)Electronic Materials

FY2007

FY2006(Apr'07-Mar'08)(Apr'06-Mar'07)

Net Sales
Unaffiliated Customers
Intersegment
Total¥ 86,325
86,325657¥ 94,123
94,123(468)

Operating Income

27,34327,343
1,252

27,414
27,414
1,703

Elimination

Net Sales
Operating Income

-

-

Total

Net Sales¥ 113,668¥ 113,668¥ 1,909¥ 121,537¥ 121,537¥ 1,235

Operating Income (Loss)
Batteries

Net Sales
Unaffiliated Customers
Intersegment
Total

Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)

Consolidated Geographic Segment Information
Yen (millions)Japan

FY2007

FY2006(Apr'07-Mar'08)(Apr'06-Mar'07)

Net Sales
Unaffiliated Customers
Intersegment
Total¥ 56,873
12,891
69,764641¥ 59,398
12,547
71,945643

51,83926,25978,0981,367

57,577
26,79084,367
1,092

1,879
1,879
73

1,858
1,858
11

Operating Income

3,077
81
3,158
37

2,704
72
2,776
49

Elimination

Net Sales
Operating Income(39,231)(209)(39,409)
(560)

Total

Net Sales¥ 113,668¥ 121,537

Operating Income (Loss)
Asia

Net Sales
Unaffiliated Customers
Intersegment
Total

Operating Income
North America

Net Sales
Unaffiliated Customers
Intersegment
Total

Operating Income
EuropeNet Sales
Unaffiliated Customers
Intersegment
Total

Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)--¥ 113,668¥ 1,909¥ 121,537¥ 1,235

Net Overseas Sales by Customer's Geographic Location
Yen (millions)

Asia
North America
Other countries
Total

FY2007

FY2006(Apr'07-Mar'08)(Apr'06-Mar'07)¥ 55,297
5,293
8,462
¥ 69,052¥ 60,615
6,058
6,502
¥ 73,175

Business Results(1) Analysis of Consolidated Business Results
1. Overview
The electronic device market showed steady growth with the global expansion of the digitalequipment market with products such as LCD (liquid crystal display) TVs, mobile phones, digital
cameras and so on. While raw material prices remained at the high levels of last year, the market
situation became tougher due to the further decline in prices of LCD TVs and the soaring
fluctuation of the exchange rate in the fourth-quarter.
Under these circumstances, FDK Group further promoted its production innovation activities
throughout the entire operation to secure cost competitiveness and to adjust for fluctuations in
production. Regarding the development and production of new products, we proceeded with thedevelopment of products based on material technologies such as multilayer power chip inductors
and high frequency products. We also expanded production capacity of multilayer power chip
inductors in the Sanyo Plant. This market is expected to grow in the future.
As for business performance this fiscal year, sales of our core products, like motors, opticaldevices and electronic devices for mobile phones such as multilayer chip inductors, increased.
However, net sales were 1,136 million yen, a 6.5% decrease from the previous year as sales of
LCD-related products decreased in the fourth quarter.
Due to increased sales of high value-added applied material technology products, improvement
in manufacturing efficiency and cost cutting, operating income totaled 1,909 million yen, a 54.6%
increase from the previous year. However, due to the increase in other expenses, such as
exchange losses reflecting appreciation of the yen relative to the dollar and the posting of 233
million yen as an allowance from closing a consolidated subsidiary in Taiwan, the loss before
income tax was 2,574 million yen. Net loss was 3,106 million yen.

2. Electronic Device BusinessIn the electronic devices area, sales of multilayer power chip inductors increased from theprevious year due to the growth in the market, while we expanded the product lineups andextended production lines. Sales of optical devices increased from the previous year due to theacquisition of orders for submarine cables. Sales of motors increased for digital camera andoptical pickup use while sales for use in office automation equipment and automobiles remained
the same as the previous year. Sales of LCD signal processing modules and LCD backlightinverter modules decreased significantly from the previous year as pressure from set makers to
cut prices became tougher and overseas manufacturers proceeded to manufacture these products
themselves.
As a result, sales for the electronic device business were 86,325 million yen, a 8.3% decrease
from the previous year.

3. Battery Business
The battery business continued to develop new products to satisfy customers and sought todevelop new technologies for high performance, safety, and environmentally-friendly batteries.
Regarding the business environment for the battery market, prices of raw materials, such as zincand nickel, remained high continuously while the price of manganese increased. Under thesecircumstances, sales of alkaline batteries decreased for the North American market, but
increased for the domestic market. Since FDK actively engaged in sales efforts, especially on the“G.D.R.series”, we secured approximately the same sales totals as the previous year. Sales oflithium batteries decreased from the previous year.
As a result, sales for the battery business were 27,342 million yen, the same as the previous
year.

4. Forecast for the Fiscal Year Ending March 31, 2009
The influence of the U.S. sub-prime mortgage crisis may cause a decline in personal
consumption in the USA and a slowdown of the economy in many countries in FY2008. We expectthat the sales of digital appliances, such as flat panel TVs and mobile phones will be influenced
by the slowdown of the economy. In addition, market competition among set makers of flat panel
TVs is expected to become more severe and thus our business environment will be tough in the
FY 2008.
At the beginning of FY 2008, our sales and profits are not expected to grow since raw material
costs are expected to remain high, and the sales prices of LCD related products will fall 20%
annually, and the numbers of those sales are expected to fall. However, after the second quarter,
sales of alkaline batteries are expected to increase as we will enter the outdoor seasons and thenChristmas seasons.
In addition, we expect an increase in sales of profitable products such as electronic devices,with multilayer chip inductors, high frequency devices for mobile phones, and DC - DC converters.
This is due to our continuing expansion of production capacity and the increased number of
products that can be created. Furthermore, we will work vigorously on cost cutting activities inareas such as design review, procurement, and standardization
As for the forecast of net sales in FY2008, FDK targets net sales at 1,128 million yen and net
income at 300 million yen. Regarding the yen-dollar exchange rate for FY2008, FDK set a 100
yen per dollar.
Our consolidated forecasts for the year ending March 31, 2009 (FY2008) are as follows:

Net sales
Operating income
Net income
Net income per share(Millions of yen except per share data)
Year ending
Change from the year
March 31, 2009
ending March 31, 2008 (%)△0.8%¥112,800
2,800+46.7%−
300−
2.35yen(2) Analysis of Financial Condition
Cash Flow Condition
Cash flows from operating activities increased 990 million yen from the end of the previous
fiscal year. This was due to an increase in cash from improved collection of accounts receivable
and a decrease in inventories, though cash and cash equivalents decreased due to the decrease inaccounts payable.
Cash flows from investing activities decreased 2,708 million yen from the end of the previous
fiscal year due to the investment in production facilities for multilayer power chip inductors andsimilar activities.
Cash flows from financing activities increased 2,083 million yen from the end of the previous
fiscal year due to the increase in short-term borrowing.
As a result, the balance of cash and cash equivalents at the end of fiscal year 2007 was 7,217
million yen, a decrease of 312 million yen from the end of the previous fiscal year.