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

Special Report

Progress with Plan "BEGIN" Midterm Management Plan

Under the Plan "BEGIN" Midterm Management Plan covering the three-year period from fiscal 2007 through fiscal 2009, the Hitachi Cable Group is implementing several measures that seek to establish a foundation for new growth. The following is a report for each area on progress made in fiscal 2008 and business strategies for fiscal 2009.

Building a solid management foundation for future growth

The fundamental policies of the Plan "BEGIN" Midterm Management Plan covering the three-year period starting with fiscal 2007, are to implement continuous structural innovations suited to market environments, to generate steady profits in core businesses and to expand business through proactive investment of management resources in growth areas of electronics; wireless, broadcasting, and information networks; and automotive businesses.

Based on these fundamental policies, the Hitachi Cable Group will seek to achieve further growth by solidifying a strong management foundation for an age of global competition. It plans to achieve this goal by enhancing strengths: research and development structures, capabilities in production technology, human-resource development, and overseas business structures.

Notes:

• The above figures are rounded to the nearest 100 million yen.
• Business-performance forecasts above assume an average copper price of 900 thousand yen/ton. (The average copper price in fiscal 2008 was 916 thousand yen/ton.)
• With an amendment to the tax system implemented in 2008 by the Japanese Diet, the durable life of depreciable assets is likely to change. However, since details of the bill have not yet been finalized, current forecasts of consolidated and non-consolidated business performance do not reflect the effects of these amendments to the tax system. Forecasts of business performance reflecting the effects of these amendments will be released as soon as the relevant figures have been finalized.