Hitachi Cable News vol.367
70th semiannual business report From April 1, 2006 to September 30, 2006

This article is a serial feature in three installments on the products and services in three target areas under Plan "BEGIN", the new medium-term management plan: electronics; wireless, broadcasting, and information networking; and the automobile. The first installment in this issue introduces our new approach to electronics.

Overview of Plan "BEGIN", a medium-term management plan

The basic policies of Plan "BEGIN", the three-year medium-term management plan beginning fiscal 2007, are to continue structural reforms that accord with the market environment, to create steady profit in the basic business, and to promote new growth through aggressive business expansion in target areas. We believe that our basic business is the manufacturing of wires, cables, and copper products, which have been our core products since our establishment. We define electronics; wireless, broadcasting, and information networking; and the automobile as three target areas with promising growth, and will aggressively channel our operating resources to these three areas. We aim to achieve ordinary income of 20 billion yen in fiscal 2009.

To support these business strategies, we will also reinforce our R&D framework, thoroughly eliminate redundancies, and enhance our technical capabilities in manufacturing through steady evolution in manufacturing techniques. We will train personnel by fostering specific talents; we will improve our frontline operations. Further, we will strengthen our response to the global market by establishing and expanding business-management entities in China, Europe, North America, and Southeast Asia.

Target values of Plan "BEGIN"

Target areas in Plan "BEGIN"