Hitachi Cable News vol.374
73rd annual business report
From April 1, 2009 to March 31, 2010

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Feature article

New medium-term management plan: Plan “BRIDGE”

The Hitachi Cable Group has formulated a new medium-term management plan, Plan “BRIDGE,” to cover the fiscal years 2011 through 2013. This plan is being positioned as a “bridge” to “restoring the Group’s status as a highly profitable enterprise and reshaping it into a truly global entity,” and will involve the implementation of a variety of different measures. This feature article provides a brief summary of Plan “BRIDGE.”

Fundamental policy under Plan “BRIDGE”

Restoring the Group’s status as a highly profitable enterprise

The fundamental policy under the newly formulated Plan “BRIDGE” medium-term management plan is to “restore the Group’s status as a highly profitable enterprise and reshape it into a truly global entity.” Through the implementation of this medium-term management plan, we will be engineering change aimed at reinventing the Group as a collection of highly profitable businesses based primarily on materials, parts, and devices relating to the field of infrastructure.

Specifically, we will be focusing on profit margins and fundamentally strengthening our operations in foreign countries, which are expected to see strong economic growth in the future, and will be aiming to attain long-term goals of lifting ordinary income margin for all businesses to 5% or better and boosting the percentage of sales from overseas to 40% or more. Our objectives during the period of the plan, meanwhile, are to achieve net sales of 500 billion yen, an ordinary income of 25 billion yen, an ordinary income margin of 5%, and 38% of sales from overseas in fiscal 2013.

The Group has also made it its code of conduct to serve as a member of international society and conduct business with integrity and in harmony with society. We therefore intend, in addition to complying with laws, regulations, and corporate ethics, to fulfill our corporate social responsibilities by protecting the environment, ensuring quality and safety, diversifying our human resources, respecting human rights, and beefing up information security.