Hitachi Cable News vol.370
71st annual business report   From April 1, 2007, to March 31, 2008

Message from the President

Despite continuing growth in the East Asian economy during this consolidated fiscal year (fiscal 2008*1), primarily in China, the effects of deepening financial uncertainties attributable to subprime-loan issues in the US took their tool on the real economy. Factors including rising energy and raw-material costs and the effects of a strong yen also slowed growth in the Japanese economy.

This consolidated fiscal year marked the second year of Plan "BEGIN", the Hitachi Cable Group's midterm management plan covering the three-year period beginning with fiscal 2007. During this consolidated fiscal year, in addition to continuing efforts such as strengthened production-technology capabilities and proactive investment in growth areas, Hitachi Cable sought to reorganize its information-network integration business and strengthen its overseas business management functions, among other efforts. It also engaged in several mergers and acquisitions (M&A), accelerating its efforts to establish foundations for a new phase of growth.

As a result, Hitachi Cable Group business performance during this consolidated fiscal year showed growth in revenues and profits over the previous consolidated fiscal year, with total sales of 565,994 million yen (an increase of 4% over the previous consolidated fiscal year), ordinary income of 21,639 million yen (an increase of 6% over the previous consolidated fiscal year), and net income of 10,708 million yen (an increase of 24% over the previous consolidated fiscal year).

Hitachi Cable will pay year-end dividends for this consolidated fiscal year of 4.25 yen per share, equal to the interim dividends paid earlier this fiscal year.*2

The next consolidated fiscal year will be the final fiscal year of the Plan "BEGIN" Midterm Management Plan. In addition to doing everything we can to harvest the bounty of this plan in its final year, we plan to put the finishing touches on a foundation that will enable further growth.

We ask for your continuing support for the Hitachi Cable Group.

June 2008

*1 Fiscal 2008: April 1, 2007 to March 31, 2008
*2 The annual dividend per share: 8.50 yen/share

President and Chief Executive Officer,
Norio Sato