Hitachi Cable News vol.368
70th annual business report   From April 1, 2006, to March 31, 2007

Special Report

Progress with Plan "BEGIN" Midterm Management Plan

Hitachi Cable launched the Plan "BEGIN" Midterm Management Plan in fiscal 2007, the 50th anniversary since its spin-off, seeking to establish a new basis for growth. Here, we'll report on our progress with this plan in fiscal 2007, the first year of the plan, and business strategies in each field for fiscal 2008.

Establishing management foundations for consistent ordinary income exceeding 20 billion yen

The basic goals of the three-year Plan "BEGIN" Midterm Management Plan launched in fiscal 2007 are continuing structural reforms in keeping with market conditions, profits in the basic areas of operation, and aggressive business expansion in target areas where we anticipate high growth.

We plan to strengthen our research and development framework, eliminate manufacturing waste, enhance manufacturing technical capabilities, promote personnel training, and strengthen the overseas business framework in three primary regions: Europe and North America, China, and Southeast Asia.

With these activities, we hope to build strong management foundations for a new age of global competition and to establish a corporate constitution capable of consistently achieving ordinary income exceeding 20 billion yen after fiscal 2009, the last fiscal year of Plan "BEGIN".

In fiscal 2007, the first fiscal year of the plan, ordinary income were 20.4 billion yen, a reflection of some of the results of various measures taken to date.