Message From the President

Accomplish the Medium-term Management Plan to restore the Group's status as a highly profitable enterprise

President and Chief Executive Officer Hideaki Takahashi

In 2011, the Japanese economy suffered a sense of stagnation caused by a number of factors, including the Great East Japan Earthquake that caused tremendous damage to wide-ranging areas of Eastern Japan, flood damage in Thailand, the super-strong yen and a prolonged deflationary economy. Furthermore, there is fear that the world economy will once again enter into a recessionary phase, with the ailing US economy and the European debt crisis having serious repercussions on the global real economy.

In this challenging business climate, the Hitachi Cable Group has made the utmost effort to improve business performance. The Group reviewed the Medium-term Management Plan and prepared a revised version entitled Renewed Plan "BRIDGE," which contains new managerial measures. We have been promoting business structure reforms.

Fiscal 2012 (from April 1, 2012 to March 31, 2013) is the final year of the Medium-term Management Plan period and represents a crucial test for the Group. We will implement the following strategies to accomplish the Medium-term Management Plan for restoring the Group's status as a highly profitable enterprise and reshaping it into a truly global entity.

First, to ensure mid- and long-term growth and to consolidate a foundation for stable revenue, we will concentrate our management resources selectively on three priority target areas: "industrial infrastructures," "electrical power infrastructures and next-generation energy," and "information and telecommunications infrastructures." Keeping market trends and competitors' moves in mind from a global perspective, we will attain an unrivaled manufacturing level by launching high value-added products and new products with technological advantages into the market. We will construct a strong business portfolio that is capable of generating stable profits by continuously supplying attractive and useful products.

Second, we will drastically reinforce overseas operations. The world economy is undergoing a substantial paradigm shift, with leadership once dominated by Western countries now moving towards China, Asia, and emerging countries. To keep pace with these changes, we will construct an operational structure in the most optimal location, keeping in mind not only sales, but the overall supply chain, including procurement, development and design, production and distribution. The products and services traditionally offered mainly for the domestic market will also be introduced to the global market if thorough market research justifies this action.

Finally, we will adhere to Basics and Ethics principles. Recognizing that a corporation is a member of society, we will further strengthen our efforts to fulfill corporate social responsibilities (CSR), including compliance, environmental conservation, safety assurance, respect for human rights and information security management.