Global Warming Prevention

In an effort to contribute to the prevention of global warming, the Hitachi Cable Group continues to implement facility upgrading at its production bases, working to more effectively use truck transportation and promoting modal shifts. In offices, the Company is encouraging all of its employees to reduce the use of energy by effectively controlling the operation of air-conditioning and lighting systems.

Reducing CO2 Emissions from Energy Use

Hitachi Cable is working to achieve the target of reducing its CO2 emissions from energy use in Japan by 7% (compared with the FY1991 level) in FY2011. In Japan, the Hitachi Cable Group's CO2 emissions from energy use during FY2010 totaled 220 thousand tons. Compared with the 296 thousand tons recorded in FY1991, the Group achieved a 25% reduction. Also, achieving a 3% year-on-year reduction, the Group accomplished the target set under its Environmental Action Plan of reducing CO2 emissions from energy use by 7% compared with the FY1991 level.
Hitachi Cable has promoted the replacement of conventional fuels with those that are considered to be more environment-friendly over the past four years. FY2010 was the final year for this initiative. During the period under review, we changed the fuel used in industrial furnaces at our Toyoura Works from butane to liquefied natural gas (LNG). At the same time, the Company continued to promote facility upgrading to reduce CO2 emissions. The significant 25% reduction from the FY1991 level reflected these and other efforts made by the Company as well as the effect of the electricity emission factor (factor adjusted for emission calculations).

Hitachi Cable Group CO2 Emissions and CO2 Emissions per Unit of Net Sales

*1	The following CO2 conversion factors have been used: [Fuel] Fuel Category-Specific Emission Factors, Law Concerning the Promotion of the Measures to Cope with Global Warming [Electricity] Average for all power sources for FY1991; 2006 and 2007 CO2 Emission Factor for Each Power Producer, notification by the Ministry of Economy, Trade and Industry and the Ministry of the Environment for FY2007 and FY2008; 2008 Adjusted Emission Factor for Each Power Producer for FY2009 and FY2010
*2	In the calculation of CO2 emissions per unit of net sales, a zero-base amount of net sales, which exclude the cost of copper, has been used.
*3	The above figures exclude Hitachi Cable Film Device, Ltd.
*4	When real emission factors are used as electricity emission factors, CO2 emissions amount to 267 thousand tons and 261 thousand tons for FY2009 and FY2010, respectively.

Reducing Emissions of SF6, PFC and Other GHGs

Greenhouse gases (GHGs) other than CO2 generated through energy use include sulfur hexafluoride (SF6), which is a gas used in insulation performance tests of electric parts and components, CO2 generated without energy use, and perfluorocarbon (PFC) and hydrofluorocarbon (HFC), used for purging and as cooling agents for heat transfer performance tests of copper pipes.
Total SF6 emissions in FY2010 were 0.99 tons, or 23,700 tons when converted to CO2. We achieved a 52% reduction from the FY2004 level, outperforming the 34% reduction target set under the Environmental Action Plan. This favorable result was due to the Company's initiative to recover and reuse the SF6 used in insulation performance test devices.
Total CO2-equivalent emissions of CO2 generated without energy use, PFC and HFC amounted to 100 tons. Also, total emissions of all GHGs, which include SF6 and exclude CO2 generated through energy use, amounted to 23,800 tons.

*1	For emissions calculations, the Fuel Category-Specific Emission Factors have been used, as defined under the Law Concerning the Promotion of the Measures to Cope with Global Warming, have been used.
*2	Calculation period is each fiscal year.
*3	The above figures exclude Hitachi Cable Film Device, Ltd.

Energy-Saving Initiatives Aimed at Reducing CO2 Emissions

The following table shows major facility upgrading activities that Hitachi Cable conducted at its domestic production sites during FY2010. These activities were aimed at improving energy-saving performance of applicable facilities and thereby reducing their CO2 emissions.
Through these activities, Hitachi Cable reduced CO2 emissions by 3,010 tons year on year. This amount of reduction is equivalent to 1,790 kiloliters of crude oil, or to 69,500 gigajoule (GJ) of energy.

Category Description of Upgrading Fuel conversion Changed fuel gas used for heating industrial furnaces from butane to LNG Energy shift Changed plating solution heating process from steam system to electric system Changed from storage central steam heat-retention system to drum distributed electric heat-retention system Management reinforcement Introduced an automated freezer control system Reinforced the rule of stopping blowers and pumps for facilities that are in a standby mode Introduced an automated compressor control system Reinforced the rule of closing valves when heating steam is not in use and optimized steam pressure Use of inverters Introduced inverters in cooling water pumps Power distribution systems Improved distribution efficiency by renewing transformers and streamlining their arrangement

Specified Enterprises under the Revised Energy Saving Law

The revision of the Law Concerning the Rational Use of Energy, also known as the Energy Saving Law, will take effect in FY2011. Within the Hitachi Cable Group, Hitachi Cable, Ltd., Hitachi Alloy Co., Ltd., Tonichi Kyosan Cable, Ltd., Tohoku Rubber Co., Ltd. and Hitachi Cable Film Device, Ltd. will fall under the category of "Specified Enterprise" under this revised law. These companies report their energy use status periodically to related authorities. In addition, each of these companies prepares periodic reports and medium- and long-term plans for the rational use of energy while appointing energy managers.

Introduction of Automated Freezer Control System

Hitachi Cable Film Device, Ltd. operates a plant that manufactures chip-on-films (COFs), which are thin-film substrates that transmit data to liquid crystal panels. COFs are manufactured in cleanrooms, which use turbo freezers to achieve optimal air conditions. These freezers consume a significant amount of electricity.
Previously, Hitachi Cable Film Device manually adjusted the operation of turbo freezers—two units in winter and four in summer—to control the temperature in the cleanrooms. However, during FY2010, the company introduced an energy-efficient automated freezer control system based on its proprietary patented technology. As a result, the operation of freezers is no longer required during winter.* Moreover, during summer, necessary air-conditioning can be achieved through the automated variable operation of three freezers. The reduction in the company's annual power consumption thanks to the new automated freezer control system totaled 2,000 MWh.
The company presented its energy-saving activities based on this new system at the 2009 Kanto Energy- Saving Initiative Presentation Assembly. In fact, the company received a Director-General, Kanto Bureau of Economy, Trade and Industry prize for this development.


* Operations in a free-cooling mode have eliminated the need for turbo-freezer operations in winter.

Creating Bitter-Gourd Greenery on Exterior Walls

At Tonichi Kyosan Cable, Ltd.'s Ishioka Head Office, the company's employees create bitter-gourd greenery on the exterior wall of the office building every year. By inviting employees' family members to the planting of bitter gourds, the company is working to raise the environmental awareness of the participants. Bitter gourds grow into a large green curtain by mid-July every year, effectively blocking the sunlight and preventing a rise in office temperature.

Reducing CO2 Emissions at Overseas Production Sites

Total CO2 emissions from energy use at 19 overseas production sites amounted to 109,000 tons in FY2010. This figure represents a significant reduction from FY2009, owing to a decline in energy use, which was brought about by decreased production volume in line with the ongoing global recession from the second half of FY2009. With the aim of further reducing energy use and CO2 emissions, individual overseas production sites are promoting facility upgrading to achieve their ISO and EMS objectives and targets.

CO2 Emissions (19 Overseas Production Sites)

*

The following CO2 conversion factors have been used: [Fuel] Fuel Category-Specific Emission Factors, Law Concerning the Promotion of the Measures to Cope with Global Warming [Electricity] Emission Factors 2003 of the Survey Report of Estimated GHG Emissions Intensity in the Power Sector by Country, compiled by the Japan Electrical Manufacturers' Association

Energy-Saving Activities at Thai Hitachi Enamel Wire Co., Ltd.

Located in Bangpakong in the suburb of Bangkok, Thailand, Thai Hitachi Enamel Wire manufactures enamel wires. A number of machines are operating at this company's plant, including enamel-coating equipment and air-conditioning and other utility devices, and the plant consequently consumes a significant amount of electricity. In response, the entire plant started energy-saving activities in June 2009, beginning with those for air-conditioning systems, cooling-water pumps and compressors.
First, plant workers have endeavored to reduce the number of airconditioning units by optimizing capacity, dividing plant floors into smaller sections and blocking off the sunlight. For cooling-water pumps, they started with analyzing the operational status of production facilities and, based on results of this analysis, they streamlined the pump arrangements, thereby reducing the number of pumps required for a certain level of production capacity. Meanwhile, by installing inverters and undertaking overhauls, the power consumption of compressors has been reduced. In addition, they have conducted monthly inspections for air leaks from pipes and facilities. Through these activities, the plant has realized a substantial reduction in energy use. Looking ahead, Thai Hitachi Enamel Wire plans to reduce the power consumption of enamel-coating equipment.

Global Warming Countermeasures in Product Transportation

With the aim of saving energy and reducing CO2 emissions in product transportation, the Hitachi Cable Group is striving to reduce crude oil-equivalent energy use per unit (ton-kilometer) of transportation by 4% in FY2011 from the FY2007 level.
During FY2010, Hitachi Cable changed the method of calculating the consumption of most types of energy it uses in product transportation, from the conventional improved ton-kilometer method to the fuel consumption method. We adopted the fuel consumption method because we expect that the scope of improvement measures and related activities will be expanded and that calculation accuracy will be enhanced. Based on this new calculation method, Hitachi Cable reduced energy use per unit of transportation in FY2010 by 5.2% from the FY2007 level, achieving the target set under its Environmental Action Plan.
Specific activities included: activities included: (1) reducing the number of regular trips made by trucks through integration of operations; and (2) improving truck cargo utilization through the use of effectively designed stacking jigs and preventing sudden changes in shipment schedules. In the area of modal shift, the total volume of product transportation by railway and domestic vessels did not grow in FY2010, despite new transportation routines to Hokkaido and Kyushu, reflecting the discontinuation of certain routines due to their small volumes.

Energy Use per Unit of Transportation (Domestic)

Annual Report as Designated Shipper

In the FY2010 annual report that it has submitted as a Designated Shipper, set forth under the Energy Saving Law, Hitachi Cable reported that its energy use per unit of transportation was 92% of that in FY2009 and that CO2 emissions from transportation totaled 6,910 tons. This CO2 emissions figure represents a 17% reduction from the reported figure in FY2009. In addition to the benefit of various initiatives and the new calculation method, a decline in the volume of transportation contributed to the reduction in CO2 emissions.

CO2 Emissions from Transportation (Non-Consolidated)