Date and Time:	April 28, 2009 (Tuesday) 14:00-14:10
Place:	Akihabara UDX 6F UDX Conference
Participantst:	Mitsuo Imai, Representative Executive Officer, President & Chief Executive Officer Yoshiaki Yoneda, Executive Vice-President, Representative Executive Officer (Group-Executive, Business Support Group) Shinya Inasaka, General Manager, Finance Div. Business Support Group Shoichi Kogure, General Manager, Administration Dept., Human Resources & Administration Group Takuya Akiyama,   Group Manager, Corporate Communication Sec., Administration Dept., Human Resources & Administration Group
Agenda:	1.Explanation of Settlement of Accounts (Mr. Yoneda) 2.Business Results for Fiscal 2009, Ended March 31, 2009 (Mr. Inasaka) 3.Questions and Answers

materials

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The information provided herein is only an overview and not a word-for-word transcription of the briefing. The following is a summary of the explanations and of the question-and-answer session that followed.

Notes:

Forecasts of numerical performance contained herein (excluding actual accounting figures) were made as of April 28, 2009, and the Company's management has calculated such forecasts based on assumptions and suppositions judged to be sound. Accordingly, actual results may differ greatly from targets and forecasts.

*Each brand name that appears here is the trademark or registered trademark of their respective owners.

1. Overview of Consolidated Results for Fiscal 2009

In fiscal 2009 (April 1, 2008, through March 31, 2009), consolidated results were impacted by a rapid deterioration of the business environment that restrained net sales to 493,151 million yen, approximately 13% below the level in the previous fiscal year. Profitability was negatively affected by such factors as a sharp drop in copper prices that caused revaluation losses on inventory assets as well as by sharp falls in demand for products in semiconductor and automotive markets. As a result, operating income was a loss of 14,740 million yen, and ordinary income was a loss of 19,974 million yen. Hitachi Cable announced its revised forecasts of business performance for fiscal 2009 on January 23, 2009, and at that time the Company projected an operating loss of approximately 20 billion yen and an ordinary loss of approximately 23 billion yen. Since then, however, copper prices have been higher than their assumed levels and sales of information network equipment and semiconductor products have been greater than anticipated. These factors made the operating loss and ordinary loss smaller than projected.

Amid the current harsh business environment, the Company is implementing restructuring measures that led to the recording of 13,169 million yen in extraordinary losses associated with such factors as impairment losses and a loss on the elimination of fixed assets during fiscal 2009. While our revised forecast announced on January 23, 2009, anticipated approximately 9 billion yen in such extraordinary losses, we decided to record the maximum possible portion of these losses during fiscal 2009 as a means of strengthening our positioning in fiscal 2010. This policy caused the value of extraordinary losses to exceed the projected level. The level of the net loss in fiscal 2009 was roughly in line with our previous projection.

1-1. Profit and Loss Statement

In fiscal 2009, net sales were 493,151 million yen, operating income was a loss of 14,740 million yen, ordinary income was a loss of 19,974 million yen, income before taxes and other adjustments was a loss of 33,036 million yen, and net income was a loss of 53,775 million yen.

(1)Net Sales

Net sales amounted to 493,151 million yen, approximately 72.8 billion yen, or 13%, below the level in the previous fiscal year. The factors causing the change were as follows.

With respect to factors positively affecting net sales, the inclusion of additional companies within the scope of consolidation had the effect of increasing net sales by approximately 14.1 billion yen. Regarding factors that negatively affected net sales, copper price fluctuations had the effect of reducing net sales by approximately 14.3 billion yen, and currency exchange rate fluctuations had the effect of lowering net sales by approximately 18.4 billion yen. Net increase/decrease, other reduced net sales by approximately 54.2 billion yen.

Factors Accounting for Changes in Net Sales

(billions of yen) (Amounts less than 100 million yen have been rounded off.)

Impact of the copper price fluctuations	-14.3
Impact of inclusion of additional Group companies within the scope of consolidation	+14.1
Impact of foreign exchange rates (117 yen/$ => 102 yen/$)	-18.4
Net increase/decrease, other	-54.2
Total	-72.8

(2)Operating Income

We recorded an operating loss of 14,740 million yen, which is approximately 37.8 billion yen below the level of operating income in fiscal 2008.

Factors decreasing operating income included an approximately 13.6 billion yen decrease due to the drop in net sales and an approximately 8.8 billion yen decrease due to revaluation losses on inventory assets associated with the sharp drop in copper prices. The impact of including additional Group companies within the scope of consolidation reduced operating income by approximately 3.6 billion yen, and most of this impact reflected the losses of Hitachi Cable Film Device, Ltd., which manufactures Chip On Film (COF) for LCDs. In addition, there was a roughly 3.3 billion yen decrease due to the exchange rate trend of yen appreciation.

Moreover, the impact of a rise in fixed costs decreased operating income by roughly 4.1 billion yen. Of this, about 4.9 billion yen was attributable to the impact of growth in depreciation expense. Of the impact of growth in depreciation expense, the portion attributable to the revision of the useful lives of fixed assets that accompanied a recent tax reform measure was about 2.9 billion yen.

Factors Accounting for Changes in Operating Income

(billions of yen) (Amounts less than 100 million yen have been rounded off.)

Profit change from sales decrease	-13.6
Revaluation losses on inventory assets due to sharp drop in copper prices	-8.8
Impact of inclusion of additional Group companies within the scope of consolidation	-3.6
Impact of foreign exchange rates (117 yen/US$1 => 102 yen/US$1)	-3.3
Rise in fixed costs	-4.1
Other factors	-4.4
Total	-37.8

(3) Ordinary Income

Amounting to a loss of 19,974 million yen, the ordinary loss was roughly 41.6 billion yen below the level in fiscal 2008.

Factors decreasing ordinary income included a roughly 37.8 billion yen decrease due to the decrease in operating income. In addition, a shift from overall profitability of equity-method companies to an overall loss led to a roughly 4.6 billion yen decrease due to the decrease in investment income by equity method.

Factors Accounting for Changes: in Ordinary Income

(billions of yen) (Amounts less than 100 million yen have been rounded off.)

Factors accounting for changes in operating income	-37.8
Decrease in investment income by equity method	-4.6
Other factors	+0.8
Total	-41.6

(4) Extraordinary Loss

Our extraordinary loss amounted to 13,169 million yen. This figure includes approximately 9 billion yen in impairment losses and approximately 1.9 billion yen in the loss on the elimination of fixed assets.

While our revised forecast announced on January 23, 2009, anticipated approximately 9 billion yen in extraordinary losses, the actual amount of extraordinary losses was higher than projected due to such factors as the implementation of restructuring measures.

Analysis of Extraordinary Income and Extraordinary Loss

(billions of yen) (Amounts less than 100 million yen have been rounded off.)

Impairment losses	-9.0
Loss on elimination of fixed assets	-1.9
Other factors	-2.3
Total	-13.2

(5) Corporate Taxes, etc. and Gains to Minority Investors

Corporate Taxes, etc. and Gains to Minority Investors amounted to a loss of approximately 20.7 billion yen. Of this figure, approximately 18.4 billion yen was attributable to an income tax adjustment figure that primarily reflected the elimination of deferred income tax assets.

Analysis of Corporate Taxes, etc. and Gains to Minority Investors

(billions of yen) (Amounts less than 100 million yen have been rounded off.)

Income tax adjustment figure	-18.4
Other factors	-2.3
Total	-20.7

1-2. Balance Sheets

Total assets amounted to 278,958 million yen, representing a decrease of approximately 91.2 billion yen from March 31, 2008.

(1) Current Assets

Current assets totaled 130,670 million yen, representing a decrease of about 71.4 billion yen from March 31, 2008.

Factors decreasing ordinary income included the impact of a decrease in trade receivables, which had the effect of reducing current assets approximately 44.9 billion yen, and the impact of a decrease in inventories, which had the effect of reducing current assets approximately 20.8 billion yen. The associated drop in working capital was due to the sharp fall in copper prices and the decrease in net sales.

Factors Accounting for Changes: Current Assets

(billions of yen) (Amounts less than 100 million yen have been rounded off.)

Trade receivables	-44.9
Inventories	-20.8

(2) Fixed Assets

Fixed assets amounted to 148,288 million yen, down approximately 19.8 billion yen from March 31, 2008. This mainly reflected the impairment treatment of fixed assets and the elimination of deferred tax assets.

1-3. Segment Information

(1) Wires and Cables

Sales in this segment amounted to 253,028 million yen during fiscal 2009, down 15% from the fiscal 2008 level. This included sales to outside customers of 243.3 billion yen, down approximately 41.8 billion yen from the previous fiscal year. The drop in copper prices had the effect of reducing these sales by approximately 10 billion yen.

An operating loss of 2,058 million yen was recorded, a profitability level approximately 13.4 billion yen lower than that in the previous fiscal year. This reflected revaluation losses on inventory assets due to the sharp drop in copper prices, which had the effect of reducing the segment's operating income by approximately 5.4 billion yen. On a real operating profitability basis—defined as excluding the temporary impact of revaluation losses on inventory assets—we generated approximately 3 billion yen of operating income.

(2) Information and Telecommunications Networking

Sales in this segment during fiscal 2009 totaled 82,831 million yen, 7% lower than in the previous fiscal year. This included sales to outside customers of 76.6 billion yen, approximately 4.3 billion yen lower than that in the previous fiscal year.
The segment's operating income was 3,886 million yen, down approximately 3.1 billion yen from the previous fiscal year.

(3) Sophisticated Materials

Sales in this segment came to 177,822 million yen, down 13% from the previous fiscal year. This included sales to outside customers of 170.1 billion yen, approximately 26.5 billion yen lower than in the previous fiscal year. The drop in copper prices had the effect of lowering these sales by approximately 4.0 billion yen.

The segment recorded an operating loss of 17,284 million yen, a profitability level approximately 21.5 billion yen lower than that in the previous fiscal year. Of the operating loss, approximately 2.9 billion was attributable to revaluation losses on inventory assets due to the sharp drop in copper prices.

2. Performance Forecast for the Fiscal Year Ending March 31, 2010

2-1. Consolidated Performance Forecast for Fiscal 2010 (April 1, 2009-March 31, 2010)

For fiscal 2010, Hitachi Cable is forecasting net sales of 370 billion yen, operating income of 1 billion yen, ordinary income of 1 billion yen, and a net loss of 3 billion yen.

(1)Net Sales Forecast

We are forecasting that net sales will amount to 370 billion yen, approximately 123.2 billion yen below the fiscal 2009 level. Looking at the factors expected to cause the change, copper price fluctuations are expected to have the effect of reducing net sales by approximately 65.2 billion yen, and currency exchange rate fluctuations are expected to have the effect of lowering net sales by approximately 8.7 billion yen. Net increase/decrease, other is expected to have the effect of lowering net sales by approximately 49.3 billion yen.

We are basing these forecasts on the assumptions that the price of copper will average 400 thousand yen per metric ton and that the yen/dollar exchange rate will average 90 yen/dollar.

Factors Accounting for Projected Changes in Net Sales

(billions of yen) (Amounts less than 100 million yen have been rounded off.)

Impact of the copper price (reference: average official prices of 657 thousand yen/metric ton => 400 thousand yen/metric ton )	-65.2
Impact of foreign exchange rates (102 yen/$ => 90 yen/$)	-8.7
Net increase/decrease, other	-49.3
Total	-123.2

(2)Operating Income

We are projecting that our operating income will rise to 1 billion yen, which is approximately 15.7 billion yen above the level of operating income in fiscal 2009.

Looking at factors expected to increase operating income, we expect an approximately 8.3 billion yen increase due to the elimination of revaluation losses on inventory assets associated with the drop in copper prices, an approximately 7.5 billion yen increase stemming from productivity gains and lower materials procurement costs, and a 17.5 billion yen increase associated with fixed cost reductions centered on personnel expenses.

With respect to factors expected to decrease operating income, we are anticipating an approximately 12.3 billion yen drop due to the decline in sales, an approximately 1.8 billion yen decline resulting from changes in selling prices and in merchandise mix, etc., an approximately 2.4 billion yen decline resulting from changes in foreign exchange rates, and a 1.1 billion yen fall owing to other factors.

Factors Accounting for Changes in Operating Income

(billions of yen) (Amounts less than 100 million yen have been rounded off.)

Elimination of revaluation losses on inventory assets	+8.3
Profit change from sales decrease	-12.3
Changes in selling prices and in merchandise mix, etc.	-1.8
Impact of foreign exchange rates (102 yen/US$1 => 90 yen/US$1)	-2.4
Productivity gains and lower materials procurement costs	+7.5
Rise due to reduction of fixed costs	+17.5
Other factors	-1.1
Total	+15.7

(3) Ordinary Income Forecast

We are projecting 1 billion yen in ordinary income, roughly 21.0 billion yen above the level in fiscal 2009.

Looking at factors expected to increase ordinary income, we anticipate a roughly 15.7 billion yen rise due to changes in operating income, an approximately 4.4 billion yen advance associated with the restored profitability of affiliated companies accounted for by the equity method, and a 0.9 billion yen augmentation stemming from other factors.

Factors Accounting for Changes: Ordinary Income

(billions of yen) (Amounts less than 100 million yen have been rounded off.)

Factors accounting for changes in operating income	+15.7
Increase in investment income by equity method	+4.4
Other factors	+0.9
Total	+21.0

2-2. Segment Forecasts (Consolidated)

(1) Wires and Cables

Net sales in this segment are projected to amount to 180.5 billion yen during fiscal 2010, including sales to outside customers of 173.5 billion yen. The impact of the drop in copper prices is expected to have the effect of reducing sales by approximately 45.0 billion yen.

We anticipate that the segment will generate 3.5 billion yen in operating income.

(2) Information and Telecommunications Networking

Net sales in this segment are expected to total 71.5 billion yen, included 66.5 billion yen of sales to outside customers.

The segment's operating income is forecast to be 3.5 billion yen.

(3) Sophisticated Materials

Net sales in this segment are projected to come to 131 billion yen, including 127 billion yen in sales to outside customers. The impact of the drop in copper prices is expected to have the effect of reducing sales by approximately 20 billion yen.

The segment is expected to generate 6.5 billion yen in operating income.

During the first half of fiscal 2010, we project that the persistent operating loss of the Sophisticated Materials segment will cause the Company as a whole to record an operating loss of approximately 5 billion yen. However, because approximately 6 billion yen of operating income is forecast to be generated during the latter half of fiscal 2010, we are expecting to achieve roughly 1 billion yen in operating income for fiscal 2010 as a whole.

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Questions and Answers

Q.	What is the reason for improvement in investment income by equity method?
A.	Principal reasons for the improvement include, first, the elimination of losses associated with the drop in copper prices and, second, the improvement of demand. These factors caused large losses among marketing companies affiliated with the Wires and Cables segment during fiscal 2009, and those companies are expected to restore their profitability. In addition, overseas equity-method companies are expected to restore their profitability in fiscal 2010.
Q.	To what extent does your forecast for fiscal 2010 take into account the effects of measures to eliminate and consolidate corporate bases?
A.	Regarding the elimination and consolidation of COF manufacturing bases, our forecast for fiscal 2010 takes the effect of those measures into account. However, our forecast for fiscal 2010 does not reflect the effects of measures to eliminate and consolidate overseas auto parts manufacturing bases, because these measures will be taken during both fiscal 2010 and the first half of fiscal 2011.