FOR IMMEDIATE RELEASE
October 31, 2007

FY2007 First-Half Consolidated Financial Results(April 1, 2007 to September 30, 2007)

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: October 31, 2007
Contact : Corporate Communication Office, Business Strategy & Planning Department
E-mail: niida@fdk.co.jp
U.S. GAPP is not applied

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.
Six month ended September 30, 2007: 128,075,884
Six month ended September 30, 2006: 128,075,884
Year ended March 31, 2007

: 128,075,884

2.Consolidated Operating Results for the 1H of FY 2007
a. Consolidated Results of Operations
Yen

Yen

(millions)(millions)

U.S.Dollars(millions)

FY2006

1H/FY2007

1H/FY2007

1H/FY2006

Change(%)

Net Sales

58,63762,043-5.5%

121,537

Operating Income

1,077

86

-

1,235

9.37

Income(Loss) Before Income Taxes

(163)

(51)

-

122

(1.42)

(392)

(359)

-

130

(3.41)(3.07) yen(2.80) yen-

1.02 yen---$509.89

and Minority Interests
Net Income (Loss)
Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings(2.66 cent)-b. Net Sales by Business Segment
Yen

Yen

(millions)(millions)(millions)

FY2006

1H/FY2007

1H/FY2007

1H/FY2006

Change(%)

U.S.Dollars

Electronic Devices

46,20348,883

94,123

Batteries

12,434

13,16027,414108.12

Total

58,63762,043

121,537509.89c. Consolidated Financial Position
Yen

Yen

(millions)(millions)

2007/9/30

2006/9/30

2007/3/31

Total Assets

77,80877,31674,780Total Net Assets

6,436

6,168

6,845

Shareholders' Equity

6,485

6,392

6,879

Shareholders' Equity Ratio

8.2%

7.9%

9.1%

(36.05) yen(38.38) yen(32.86) yen

Shareholders' Equity
Per Share$401.77

d. Consolidated Statements of Cash Flows
Yen

Yen

(millions)(millions)

1H/FY2007
Cash Flows from

1H/FY2006

FY2006

(870)

3,630

2,686

(1,802)(1,284)(2,174)729(2,922)

(730)

5,562

7,062

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 115 yen=$1
3.The percentage in this statement presents rate of change compared with the same period last year.
3.Reference - FY2007 Consolidated Financial Forecast (April 1, 2007 - March 31, 2008)
Consolidated Financial Forecast
Yen(million)

Change from FY2006(%)

Net Sales

122,200

0.5

Operating Income

3,700

199.6

800

515.4

Net Income
Net Income per Share

6.25 yen-

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¥

1H/FY2007

1H/FY2006

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

58,637¥62,043¥

121,537

Operating costs and expenses
Cost of sales

52,08256,484

109,562

Selling, general and administrative expenses

5,478

5,473

10,74057,56061,957

120,302

1,077

86

1,235

Interest and dividend income

39

40

224

Equity in earnings (losses) of affiliates, net

10

56

72

Interest charges

(296)

(211)

(474)

Other, net

(993)

(22)

(427)

(1,240)

(137)

(605)

(163)

(51)

630

Current

259

314

462

Deferred

(32)

(28)

19

227

286

481

(390)

(337)

149

(2)

(22)

(19)

¥ ( 392)¥ ( 359)¥ 130

Operating income (loss)
Other income (expenses)

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)30-Sep-07

30-Sep-06

31-Mar-07

AssetsCurrent assets
Cash and time deposit¥ 5,576¥ 7,081

Notes receivable-trade

1,836

1,182

¥ 7,543
1,788

Accounts receivable-trade

31,03429,93027,417

Inventories

8,889

11,083

10,159Deferred tax assets

165

196

91

Other current assets

2,588

2,885

3,479

(21)

(43)

(35)

52,261

51,39049,172

Less: Allowance for doubtful receivable
Total current assets
Tangible fixed assets
Building and structures

7,971

8,151

8,028

Other depreciable assets

9,650

10,333

9,722

Land

4,352

4,319

4,360

332

97

387

22,30522,90022,497

599

661

638

Construction in progress
Total tangible fixed assets
Intangible assets
Investments and long-term loans
Securities investments

256

125

134

Deferred tax assets

114

101

160

Other investments and long-term loans

2,273

2,139

2,179

2,643

2,365

2,473

¥ 77,808¥ 77,316¥ 74,780

Notes Payable-trade

¥ 426

¥ 121

¥ 352

Account payable-trade29,17832,613

26,969

Short-term borrowings

29,49725,711

28,199Current portion of long-term debt

946

1,403

1,384

Accrued income taxes

190

376

281

Other current liabilities

4,892

4,614

4,440

65,12964,83861,625

Total investments
Total assets

Liabilities
Current liabilities

Total current liabilities
Long-term liabilities
Long-term debt
Accrued retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

571

825

721

5,590

5,396

5,499

82

89

90

6,243

6,310

6,310

71,372

71,14867,935

Net assets
Shareholders' equity
Common stock

22,75622,75622,756

Capital surplus

17,167

17,167

17,167Retained earnings(Deficit)(33,407)(33,504)(33,015)

(31)

(27)

(29)

6,485

6,392

6,879

14

16

20

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

(1)

(14)

(5)

(110)

(306)

(97)

(97)

(304)

(82)

48

80

48

6,436

6,168

6,845

¥ 77,808¥ 77,316¥ 74,780

Consolidated Statements of Cash Flows

Yen (millions)
1H/FY2007

1H/FY2006

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

Cash flows from operating activities
Income (loss) before income taxes and minority interests¥ ( 163)¥ ( 51)¥ 630

Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities
Depreciation and amortization

1,751

1,613

3,377

Equity in earnings of affiliates, net

(10)

(56)

(72)

(Increase) decrease in receivable-trade(3,800)

(257)

1,875

(Increase) decrease in inventories(2,229)

(852)

478

Increase (decrease) in payable-trade

2,474

3,544

(2,092)Other, net

1,740

52

(877)

Cash generated from operations

(237)

3,993

3,319

Interest paid

(333)

(185)

(406)

Interest and dividends received
Income taxes paid
Net cash provided by operating activities

62

55

239

(362)

(233)

(466)

(870)

3,630

2,686

Cash flows from investing activities
Purchase of tangible fixed assets(1,803)(2,009)(2,884)

Proceeds from sales of tangible fixed assets

9

460

505

Purchase of intangible assets

(8)

(3)

(11)

Other, net

0

268

216

(1,802)(1,284)(2,174)

-

230

690

Net cash used in investing activities

Cash flows from financing activities
Proceeds from long-term debt
Repayment of long-term debt

(550)

(605)

(1,220)

Increase (decrease) in short-term borrowings

1,281(2,537)

(188)

(2)

(10)

(12)

729

(2,922)

(730)

(24)

61

170

Net increase (decrease) in cash and cash equivalents(1,967)

(515)

(48)

Cash and cash equivalents at beginning of year

7,529

7,577

7,577

¥ 5,562¥ 7,062¥ 7,529

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

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of year

Consolidated Statements of Shareholders' Equity
1H/FY2007 (Apr-Sep'07)
Yen (millions)Shareholders' Equity
Retained
Capital surplus
earnings
Treasury stock(Deficit)¥ 17,167¥ ( 33,015)¥ ( 29)Common stock
Beginning balance
Increase(decrease)during the term:
Net income (loss)
Acquisition of treasury stock
Net increase(decrease)during the term,except foritems under shareholders'equity
Total
Ending balance

Beginning balance
Increase(decrease)during the term:
Net income (loss)
Acquisition of treasury stock
Net increase(decrease)during the term,except foritems under shareholders'equity
Total
Ending balance¥ 22,756

(392)
(2)

(392)
(2)

(2)
¥ ( 31)(394)¥ 6,485

Valuation and Translation Ajustments
Foreign
Deferred
Total Valuation
currency
gains(losses) on
and translationtranslation
hedgesajustments
adjustments¥ ( 5)¥ ( 97)¥ ( 82)

Minority
interests inconsolidated
subsidiaries

Total Net
Assets¥ 48¥ 6,845¥ 22,756

Unrealized
gains (losses)
on securities,
net of taxes
¥ 20

Total
shareholders'equity¥ 6,879¥ 17,167(392)¥ ( 33,407)

(392)
(2)
(6)
(6)
¥ 14

4
4
¥ ( 1)(13)(13)¥ ( 110)(15)(15)¥ ( 97)

0
0
¥ 48

(15)
(409)
¥ 6,436

1H/FY2006 (Apr-Sep'06)
Yen (millions)Shareholders' Equity
Retained
Capital surplus
earnings
Treasury stock(Deficit)¥ 17,167¥ ( 33,145)¥ ( 25)

Common stock
Beginning balance
Increase(decrease)during the term:
Net income (loss)
Acquisition of treasury stock
Net increase(decrease)during the term,except foritems under shareholders'equity
Total
Ending balance

Beginning balance
Increase(decrease)during the term:
Net income (loss)
Acquisition of treasury stock
Net increase(decrease)during the term,except foritems under shareholders'equity
Total
Ending balance¥ 22,756

(359)
(2)

(359)
(2)

(2)
¥ ( 27)(361)¥ 6,392

Valuation and Translation Ajustments
Foreign
Deferred
Total Valuation
currency
gains(losses) on
and translationtranslation
hedgesajustments
adjustments¥ ¥ ( 435)
¥ ( 413)

Minority
interests inconsolidated
subsidiaries

Total Net
Assets¥ 558¥ 6,898¥ 22,756

Unrealized
gains (losses)
on securities,
net of taxes
¥ 22

Total
shareholders'equity¥ 6,753¥ 17,167(359)¥ ( 33,504)

(359)
(2)
(6)
(6)
¥ 16

(14)
(14)
¥ ( 14)129
129¥ ( 306)

109
109¥ ( 304)

(478)
(478)
¥ 80

(369)
(730)
¥ 6,168

FY2006 (Apr'06-Mar'07)
Yen (millions)Shareholders' Equity
Retained
Capital surplus
earnings
Treasury stock(Deficit)¥ 17,167¥ ( 33,145)¥ ( 25)

Common stock
Beginning balance
Increase(decrease)during the term:
Net income (loss)
Acquisition of treasury stock
Net increase(decrease)during the term,except foritems under shareholders'equity
Total
Ending balance

Beginning balance
Increase(decrease)during the term:
Net income (loss)
Acquisition of treasury stock
Net increase(decrease)during the term,except foritems under shareholders'equity
Total
Ending balance¥ 22,756

130
(4)

130
(4)

(4)
¥ ( 29)126¥ 6,879

Valuation and Translation Ajustments
Foreign
Deferred
Total Valuation
currency
gains(losses) on
and translationtranslation
hedgesajustments
adjustments¥ ¥ ( 435)
¥ ( 413)

Minority
interests inconsolidated
subsidiaries

Total Net
Assets¥ 558¥ 6,898¥ 22,756

Unrealized
gains (losses)
on securities,
net of taxes
¥ 22

Total
shareholders'equity¥ 6,753¥ 17,167130¥ ( 33,015)

130
(4)
(2)
(2)
¥ 20

(5)
(5)
¥ ( 5)338
338¥ ( 97)331
331¥ ( 82)

(510)
(510)
¥ 48

(179)
(53)
¥ 6,845

Consolidated Business Segment Information
Yen (millions)Electronic Materials

Net Sales

Unaffiliated Customers
Intersegment
Total

1H/FY2007

1H/FY2006

FY2006(Apr-Sep'07)(Apr-Sep'06)(Apr'06-Mar'07)¥ 46,203
46,203731¥ 48,883
48,883(774)¥ 94,123
94,123(468)

Operating Income

12,434
12,434346

13,16013,160860

27,414
27,414
1,703

Elimination

Net Sales
Operating Income

-

-

-

Total

Net Sales¥ 58,637¥ 58,637¥ 1,077¥ 62,043¥ 62,043¥ 86¥ 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

1H/FY2007

1H/FY2006

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

Net Sales
Unaffiliated Customers
Intersegment
Total¥ 28,389
6,971
35,360434¥ 30,333
6,784
37,117(243)¥ 59,398
12,547
71,945643

27,955
14,31542,270807

29,471
13,252
42,723637

57,577
26,79084,367
1,092

888
888
33

1,060
1,060
29

1,858
1,858
11

Operating Income

1,405
45
1,450
43

1,179
40
1,219
31

2,704
72
2,776
49

Elimination

Net Sales
Operating Income(21,331)(240)(20,076)(368)(39,409)
(560)

Total

Net Sales¥ 58,637¥ 62,043¥ 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)¥ 58,637¥ 1,077¥ 62,043¥ 86¥ 121,537¥ 1,235

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

Asia
North America
Other countries
Total

1H/FY2007

1H/FY2006

FY2006(Apr-Sep'07)(Apr-Sep'06)(Apr'06-Mar'07)¥ 29,882
2,256
2,930
¥ 35,068¥ 30,223
3,814
3,364
¥ 37,401¥ 60,615
6,058
6,502
¥ 73,175

Business Results(1)Analysis of Consolidated Business Results
1.Overview
During the first six months of FY2007, the global electronics device market
continuously grew due to the growth in demand of digital equipment though there wasan affection by the keen competition with China, Taiwan, and Korea manufacturers andproduction adjustment for large screen LCD TVs, mobile phones, etc.
Under these circumstances, FDK Group (hereinafter called “FDK”) further promoted
the production innovation activities throughout for the entire operation to secure costcompetitiveness and to adjust to fluctuations in production in addition to thereinforcement of the marketing activities and sales activities to respond customer
needs.
As for the first six months of the fiscal year, net sales were 58,637 million yen, a 5.5 %decrease from the same period last year. Although FDK increased to receive orders
including new ones after the termination of the production adjustment of LCD TV
market and increased sales in the second quarter, the results of the first quarter
affected to the total performance of the first six months.
Operating income were 1,077 million yen, a 12.5 time as high from the same period
last year and thus the operation was much improved. This was due to the increased
sales of the profitable products applied of material technologies, and the improved
productivity and cost reduction, though the remarkable rise of the raw materials pricesuppressed profit margin. However, due to the increased other expenses such as
exchange losses bearing by the appreciation of yen, loss before income tax was 162
million yen and net loss for the first six months were 392 million yen.
Divisional sales overview is reported as follows.

2. Electronic Device BusinessIn the electronic device business, sales of timing control boards for LCDs weredecreased from the same period last year due to the production adjustment for the large
screen LCD TVs from the beginning of the term to the middle of the term, though its
sales for the PCs and mobile phones were increased. Sales of LCD backlight inverter
modules were remained the same as the same period last year as the effect on the
production adjustment was very significant, though FDK strengthened to acquire newcustomers and to expand the production capacity.
Sales of the multilayer power chip inductor were largely increased from the same
period last year by the expand of product line-up to correspond the market needs ofmobile phones seeking for slim package and multifunction, and the expansion of the
production ability backed by the high appreciation of the market. Sales of motor for
digital camera and automobile were increased while its sales to OA equipment
remained the same from the same period last year. Sales of optical devices wereincreased from the same period last year due to the acquisition of orders for submarine
cable. Sales of switching power supply were decreased from the same period last year as
FDK shifted its focusing products from switching power supplies for servers to DC-DC
converters.
As a result, sales for the electronic device business were 46,202 million yen, adecrease of 5.5% compared with the same period last year.

3. Battery businessIn the battery business, market environment were very severe due to the highmaterial prices and keen sales price competition. Sales of the lithium batteries
increased from the same period last year, mainly for disaster prevention equipment.
Sales of alkaline batteries were decreased from the same period last year due to thedecline sales in the North America, though FDK strengthened sales effort on its Fujitsu
Alkaline Battery“G.D.R. series” which were developed last year in a domestic market.
As a result, sales for the battery business were 12,434 million yen, a decrease of 5.5%
compared with the same period last year.

(2) Analysis of Financial Condition
Cash Flow Condition
Cash flow from operating activities decreased 869 million yen from the end of the last
fiscal year by the increase in receivable-trade and inventories.
Cash flow from investment activities decreased 1,801 million yen from the end of thelast fiscal year due to the investment in production facilities for LCD backlight inverter
modules, coil devices, multilayer power chip inductors and so on.
Cash flow from financing activities decreased 729 million yen from the end of the last
fiscal year due to the increase in borrowings.
As a result, the balance of cash and cash equivalents at the end of the first half of
FY2007 was 5,562 million yen, a decrease of 1,966 million yen from the balance at theend of the last fiscal year.