A Message from the President

First and foremost, on behalf of all Hitachi Cable Group members, I would like to extend our deepest sympathy to everyone affected by the Great East Japan Earthquake. At the same time, as we hope for the quickest recovery and restoration in the disaster region, we are reconfirming our commitment to contributing to recovery and restoration efforts through business and other activities.
The disaster caused significant damage to the broad region of northeastern Japan. Certain of the Hitachi Cable Group's production sites and sales bases were among those that suffered significant damage. At present, however, all of these sites and bases have returned to normal operation.

On the Road to Becoming a Truly Global Entity: Aiming for Resurgence and High Profitability

FY2011, ended March 31, 2011, was an important year for the Hitachi Cable Group, marking the first year of the Group's new medium-term management plan, Plan "BRIDGE," which extends through FY2013, ending March 31, 2013. However, we must admit that the Great East Japan Earthquake has put the brakes on the promotion of our new plan. In addition, market conditions surrounding the Group's operations have grown increasingly severe, with the European and U.S. economies decelerating and the yen persistently appreciating. In such an environment, to continue striving for the realization of a sustainable society, the Hitachi Cable Group must achieve sustainable growth. To this end, during FY2011, in line with the basic policy under Plan "BRIDGE,"— namely, "Restoring [the Hitachi Cable Group's] status as a highly profitable enterprise and reshaping itself into a truly global entity"—the entire Group has promoted the implementation of strategies and initiatives.
Nevertheless, reflecting dynamic changes in operating conditions, Hitachi Cable reviewed and revised Plan "BRIDGE" and announced the launch of Renewed Plan "BRIDGE" in September 2011. Under the Renewed Plan "BRIDGE," the Hitachi Cable Group will adhere to the basic policy of the original plan; however, the Group will also aggressively implement structural reforms aimed at building a powerful earnings base while promoting initiatives aimed at further reducing fixed costs and strengthening its product competitiveness. Furthermore, the Group will increase focus on profitability in its operations. In line with this profitability-focused approach, the Group will accelerate two original Plan "BRIDGE" strategies, namely, selectively allocating management resources to priority businesses and drastically reinforcing its overseas operations. As a company playing an integral role in the social infrastructure, the Hitachi Cable Group will bolster its infrastructure-related businesses—where it can leverage its Groupwide strengths—and step up operations overseas, particularly in rapidly growing emerging countries. In this way, we will strengthen our social contributions through business activities.

Helping to Secure a Sustainable Future for the Earth

Aiming to contribute to the sustainable future of the Earth, the Hitachi Cable Group consistently develops and provides products and services that are eco-friendly. Moreover, the Group strives to reduce the environmental impact of its production activities while promoting initiatives to help preserve the global environment.
To reduce the environmental impact of its products, the Group promotes environment-friendly product design and has strengthened the management of chemical content in its products through cooperation with its suppliers. Simultaneously, the Group continues to upgrade its production facilities and expand modal shifts in its logistics operations. Through initiatives aimed at reducing the CO₂ emissions of its business activities, the Group aims to reduce its CO₂ emissions by 12% in FY2015 compared with the FY1990 level.
Another area closely related to global warming prevention is biodiversity, the protection of which is critical issue that the human race is facing in the course of realizing a sustainable environment. In March 2011, we revised the Hi tachi Cable Group's Act ion Guidel ines for Environmental Conservation. The revised guidelines provide a new clause stipulating that when undertaking business activities the Hitachi Cable Group must take environmental issues into consideration in order to protect biodiversity. In accordance with these guidelines, all Hitachi Cable business sites and Group companies are tackling the protection of nature and biodiversity at their respective locations through, for example, participation in regional programs and activities.

Practice the "Basics and Ethics" to Meet Stakeholder's Expectations

Every corporation is a member of society. A commitment to promoting business activities in harmony with society and undertaking those activities in a sincere and honest manner must be at the core of any corporation that is endeavoring to contribute to the realization of a sustainable society. Knowing this, Hitachi Cable conducted a comprehensive review of its Business Ethics Guidelines and newly established the Hitachi Cable Group Code of Conduct in January 2011, which clearly defines the action guidelines with which all Hitachi Cable Group executives and employees must comply. By effectively disseminating this new code throughout the Group, we will ensure that each Group member will act in line with the code and, consequently, enable the Group to fulfill its social responsibility by complying with laws and regulations, helping to protect the environment, ensuring safety, respecting human rights and ensuring sound information security.
At the same time, the Hitachi Cable Group will continue to enhance two-way, open communication with its stakeholders, including customers, shareholders, investors, business partners and local communities. By disclosing information in a timely and appropriate fashion, we will encourage the proper understanding of the Hitachi Cable Group among stakeholders. To establish trust-based relationships with its stakeholders, the Hitachi Cable Group will conduct transparent, sincere and honest corporate management.
This Corporate Social Responsibility Report 2011 is a tool that is intended to facilitate communication between us and our stakeholders. So, we welcome your candid opinions on both the report as a whole and its content. Finally, as we endeavor to develop as a corporate group capable of making tangible contributions to the realization of a sustainable society, we ask you, our fellow stakeholders, for your unwavering support and understanding.