Date and Time:	April 28, 2008 (Monday) 18:00-18:45
Place:	Akihabara UDX Gallery
Participantst:	Masaru Okazaki, Executive Vice-President & Executive Officer, Representative Executive Officer (Group-Executive, Business Support Group) Shinya Inasaka, General Manager, Accounting Division, Business Support Group Shoichi Kogure, General Manager, Administration Dept., Human Resources & Administration Group Takuya Akiyama,   Group Manager, Corporate Communication Section, Administration Dept., Human Resources & Administration Group
Agenda:	Introduction (Mr. Okazaki) Business Results for Fiscal 2008, Ended March 31, 2008 (Mr. Inasaka) 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 details of the accounts briefing and the question-and-answer session that followed.

Notes:

Forecasts of numerical performance contained herein (excluding actual accounting figures) were made as of April 28, 2008, 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.

*Apresia is a registered trademark of Hitachi Cable.
*Each other brand name that appears here is the trademark or registered trademark of their respective owners.

*The approval of Japan's tax system in 2008 reform law is expected to lead to changes to the useful life in years of depreciated assets. Because the details of the changes were not determined at the time of this meeting, however, projections of consolidated and non-consolidated performance do not reflect the effect of these changes. Performance projections that do reflect the effect of these changes will be publicly announced as soon as they are confirmed.

1. Overview of Consolidated Results for Fiscal 2008

The Hitachi Cable Group slightly increased its sales and profitability during fiscal 2008, which was the second year of "Plan BEGIN," a new medium-term business plan covering the three years beginning from fiscal 2007. On March 28, 2008, the Company announced a revised performance projection due to an extraordinary loss that accompanied the application of impairment accounting treatment for fixed assets, and the actual performance results were very close to that projection. Since the start of 2008, the increasing severity of the U.S. subprime loan crisis and the progressive appreciation of the yen have cast a shadow over the overall economy. This and such factors as foreign currency evaluation at period end somewhat restrained the Group's performance toward the end of the year.

In the current fiscal year, which is the final year of "Plan BEGIN," the Hitachi Cable Group naturally anticipates attaining its performance targets, and it also expects to begin realizing an additional performance surge based on the success of four recent M&A transactions.

1-1. Profit and Loss Statement

Net sales were 565,994 million yen, operating income was 23,117 million yen, ordinary income was 21,639 million yen, net income before taxes and other adjustments was 17,596 million yen, and net income was 10,708 million yen.

(1)Net Sales

At 565,994 million yen, net sales were up roughly 21.8 billion yen, a 4% year-on-year increase. The principal factors behind this change were as follows.

Looking at factors that increased net sales, skyrocketing copper prices had the effect of increasing net sales by about 20.0 billion yen, of which approximately 12.5 billion yen related to the Wires and Cables segment and approximately 7.0 billion yen related to the Sophisticated Materials segment, mainly involving copper products and other products. The conversion into a consolidated subsidiary of a marketing company previously accounted for by the equity method increased net sales by about 3.0 billion yen.

Currency exchange rates increased net sales by 5.4 billion yen. The yen-dollar rate was approximately unchanged (US$1=¥117 in the previous fiscal year and US$1=¥116 in the fiscal year under review), but the Company has numerous consolidated subsidiaries in Thailand, and the appreciation of the Thai baht by slightly more than about 20% during the fiscal year under review had a large impact.

As for factors that reduced sales, sales of the vinyl-insulated wires for automobile business decreased 2.5 billion yen, reflecting the withdrawal of a Philippines-based subsidiary from such business. In addition, the net decrease due to other factors was 4.1 billion yen, reflecting such factors as an approximately 10.0 billion yen sales decrease in the Wires and Cables segment, an approximately 11.0 billion yen sales increase in the Information and Telecommunications Networking segment, an approximately 4.0 billion yen sales decrease in the Sophisticated Materials segment, and an approximately 1.0 billion yen sales increase in the Other Businesses segment.

Factors Accounting for Changes: Net Sales

(billion yen) (Amounts less than one hundred million yen have been rounded off.)

Impact of escalating copper prices (reference: average official price of 867 thousand yen/metric ton => 916 thousand yen/metric ton)	+20.0
Effect of new consolidation of subsidiaries	+3.0
Decrease in vinyl-insulated wires for automobile business (withdrawal from such business of a Philippines-based subsidiary)	-2.5
Impact of foreign exchange rates	+5.4
Net increase, other	-4.1
Total	+21.8

(2)Operating Income

Amounting to 23,117 million yen, operating income was up roughly 0.1 billion yen, a 1% year-on-year increase. The net change in operating income attributable to changes in net sales was approximately zero. While the net impact on sales of other factors was a decrease of 4.1 billion yen, looking at the breakdown of the net impact on operating income of those factors, one finds factors in the Wires and Cables segment reduced operating income while factors in the Information and Telecommunications Networking segment increased operating income. As these factors cancelled each other out, the net effect due to changes in net sales was almost nonexistent.

Factors decreasing operating income included a 1.5 billion yen decrease associated with a rise in depreciation expense that resulted from the revision of the tax system. Factors increasing operating income included factors within the other factors category that boosted operating income by 1.6 billion yen. The other factors category included factors reducing operating income-such as selling price decreases, personnel expense rises, and rising expenses related to crude oil and other raw materials-but those factors were more than offset by a decrease in the cost of sales due to a rise in productivity. As a result, operating profitability was approximately unchanged from the previous fiscal year.

Factors Accounting for Changes: Operating Income

(billion yen) (Amounts less than one hundred million yen have been rounded off.)

Profit gain from sales increase	±0.0
Impact of depreciation expense rise due to the revision of a related law	-1.5
Other factors	+1.6
Total	+0.1

(3) Ordinary Income

Amounting to 21,639 million yen, ordinary income was up roughly 1.2 billion yen, a 6% year-on-year increase.
One factor increasing income was higher profits recorded by domestic and overseas affiliates accounted for by the equity method; this factor augmented ordinary income by about 2.0 billion yen. Factors decreasing ordinary income included the rapid appreciation of the yen toward the end of the fiscal year, which led to foreign exchange losses amounting to 1.6 billion yen.

Factors Accounting for Changes: Ordinary Income

(billion yen) (Amounts less than one hundred million yen have been rounded off.)

Factors accounting for changes in operating income	+0.1
Change in profits of equity-method affiliates	-2.0
Impact of foreign exchange rates	-1.6
Other factors	+0.7
Total	+1.2

(4) Extraordinary Income and Extraordinary Loss

Extraordinary income amounted to 596 million yen.
Extraordinary loss totaled 4,639 million yen. This was largely due to impairment losses of approximately 3.1 billion yen associated with chip on film (COF) operations within tape automated bonding (TAB) business.

1-2. Balance Sheets

Total assets amounted to 370,127 million yen, representing an increase of 8,235 million yen over March 31, 2007.

(1) Current Assets

Current assets increased roughly 4.8 billion yen, compared to March 31, 2007. This mainly resulted from a 5.6 billion yen increase in inventories.

Factors Accounting for Changes: Current Assets

(billion yen) (Amounts less than one hundred million yen have been rounded off.)

Inventories

+5.6

(2) Liabilities

Liabilities increased approximately 1.0 billion yen, compared to March 31, 2007. This mainly reflected a rise of 4.4 billion yen in trade payables and a decrease of 5.1 billion yen in interest-bearing debt.

Current liabilities decreased 16.0 billion yen, and long-term liabilities increased 17.0 billion yen. This reflected a shift of approximately 15.0 billion yen from short-term borrowings to long-term debt.

Factors Accounting for Changes: Liabilities

(billion yen) (Amounts less than one hundred million yen have been rounded off.)

Trade payables	+4.4
Interest-bearing debt	-5.1

1-3. Cash Flows

Net cash provided by operating activities was 38,301 million yen, net cash used in investing activities was 28,484 million yen, and net cash used in financing activities was 9,249 million yen.

1-4. Segment Information

(1) Wires and Cables

Sales in this segment were 297,706 million yen, up 4% from fiscal 2007. This included sales to outside customers of 285,051 million yen, up approximately 10.0 billion yen. Factors behind the increase included an approximately 12.5 billion yen rise owing to the impact of the copper price surge, but sales on a real basis excluding this and other factors were down approximately 11.0 billion yen.

Operating income was 11,346 million yen, down 11% from the fiscal 2007 level. This was primarily due to the decrease in sales as measured on a real basis.

(2) Information and Telecommunications Networking

Sales in this segment were 88,893 million yen, up 20% from fiscal 2007. This included sales to outside customers of 80,934 million yen, up approximately 11.1 billion yen. The main factor behind the increase was a sharp rise in optical submarine cables sales, which surged from 0.7 billion yen to 9.6 billion yen.

Operating income was 6,990 million yen, up 104% from the fiscal 2007 level. This mainly resulted from the surge in optical submarine cables sales as well as a rise in wireless systems sales that reflected a strong performance in antenna systems for mobile phone base stations.

(3) Sophisticated Materials

Sales in this segment were 204,815 million yen, approximately the same level as in fiscal 2007. This included sales to outside customers of 196,561 million yen, up approximately 1.4 billion yen. Factors behind the increase included an approximately 7.0 billion yen rise owing to the impact of the copper price surge, which was largely offset by decreases in sales of TAB and auto parts.

Operating income was 4,158 million yen, down roughly 43% from the fiscal 2007 level. This drop reflected the decrease in real sales volume along with the impact of tax system revisions during fiscal 2008 that led to an approximately -0.9 billion yen rise in depreciation expenses.

(4) Other Businesses

Sales in this segment were 17,386 million yen, down 2% from fiscal 2007.
Operating income was 653 million yen, 9% higher than in fiscal 2007.

1-5. Sales Results by Location

Compared with fiscal 2007, sales in the Japan region showed a particularly noteworthy increase, while operating income was up in the Other region.

1-6. Overseas Sales

Compared with fiscal 2007, sales growth in North America increased. Looking at overseas sales as a share of consolidated net sales, North America's share of consolidated net sales grew.

2. Business Results Forecasts for Fiscal 2009

2-1. Consolidated Results Forecasts (April 1, 2008-March 31, 2009)

We forecast net sales of 580 billion yen, operating income of 21 billion yen, ordinary income of 21 billion yen, and net income of 12.5 billion yen.

This forecast is based on the assumptions that the price of copper will be 900 thousand yen per ton and the yen-dollar rate will be US$1=100 yen.

However, if the tax system revision proposal currently being discussed in the Japanese Diet is made law, it is expected to cause changes to the useful lives of various items for depreciation purposes. Because related details are not yet clear, the current forecast does not reflect the impact of this proposal. Regarding a forecast of results that takes the impact of the proposed changes into account, the Company plans to publicly announce such a forecast as soon as the related figures are confirmed.

(1) Net Sales Forecast

We expect net sales to increase approximately 14.0 billion yen, to 580 billion yen. The main factors underlying this forecast are as follows.

We expect a drop in copper prices to have the effect of reducing net sales by 4 billion yen. Changes to the scope of consolidation and newly consolidated subsidiaries are projected to increase net sales 15 billion yen. It is anticipated that the additional consolidated subsidiaries resulting from four recently announced M&A transactions will contribute 20 billion yen to consolidated net sales during fiscal 2009. (The four M&A transactions are those providing for the transfer of the LCD COF business of CASIO MICRONICS CO., LTD., to Hitachi Cable; the transfer of the automotive brake hose business of U.S.-based Coupled Products, LLC to Hitachi Cable; the acquisition of Austria-based Astral Meditech GmbH, a manufacturer of ultrasound probe cables for medical use; and the acquisition of Japan-based Sosey Co., Ltd., a manufacturer of rubber rollers for office automation equipment.) On the other hand, the transformation of a Thailand-based consolidated subsidiary into an affiliate accounted for using the equity method is expected to reduce net sales 5 billion yen.

Yen appreciation is expected to have the effect of reducing net sales 16 billion yen.

The net increase due to other factors is expected to amount to 19 billion yen. By business segment, this increase is projected to be approximately 10 billion yen for the Wires and Cables segment, approximately 1 billion yen for the Information and Telecommunications Networking segment, and approximately 8 billion yen for the Sophisticated Materials segment.

Factors Accounting for Change in Net Sales

(billion yen) (Amounts less than one hundred million yen have been rounded off.)

Impact of escalating copper prices (reference: average official price of 916 thousand yen/metric ton => 900 thousand yen/metric ton)	-40.0
Changes to the scope of consolidation/newly consolidated subsidiaries	+15.0
Impact of foreign exchange rates	-16.0
Net increase	+19.0
Total	+14.0

(2) Operating Income Forecast

We forecast operating income to decrease approximately 2.1 billion yen, to 21 billion yen. We expect the rise in net sales to increase operating income 4 billion yen. A fixed cost increase is projected to reduce operating income 5.5 billion yen, of which 3.5 billion yen is attributable to higher depreciation of fixed assets, and 1.7 billion yen is attributable to a rise in personnel costs.
Yen appreciation is projected to reduce operating income 3 billion yen, while cost of sales reductions are projected to increase operating income 2.4 billion yen.

Factors Accounting for Changes in Operating Income

(billion yen) (Amounts less than one hundred million yen have been rounded off.)

Profitability increase due to net sales increase	+4.0
Profitability decrease due to fixed cost increase	-5.5
Impact of foreign exchange rates	-3.0
Other factors	+2.4
Total	-2.1

(3) Ordinary Income Forecast

We forecast that ordinary income will decline approximately 0.6 billion yen, to 21 billion yen. We expect operating income to decrease 2.1 billion yen. The effect of 1.6 billion yen in foreign currency losses recorded in the previous fiscal year are incorporated in this forecast; so, this factor is expressed as having a positive effect on ordinary income.

Factors Accounting for Changes: Ordinary Income

(billion yen) (Amounts less than one hundred million yen have been rounded off.)

Factors accounting for changes in operating income	-2.1
Foreign currency losses in the previous fiscal year	+1.6
Other factors	-0.1
Total	-0.6

2-2. Performance Forecast by Segment (Consolidated)

(1) Wire and Cables Segment Forecast

Net sales in this segment are forecast to amount to 291.8 billion yen (including 284 billion yen in sales to outside customers), and operating income is projected to total 10.5 billion yen.

Factors negatively affecting sales include an anticipated small decline in copper prices and the anticipated trend of yen appreciation. Together, these factors are projected to reduce net sales approximately 9 billion yen. However, because the net effect of other factors is expected to boost net sales approximately 10 billion yen, the level of sales is projected to be roughly the same as in the previous fiscal year.

(2) Information and Telecommunications Networking Segment Forecast

Net sales in this segment are forecast to amount to 86.1 billion yen (including 78.5 billion yen in sales to outside customers), and operating income is projected to total 6 billion yen. We anticipate net sales will decrease, mainly due to the effect of currency exchange rate trends on revenues from optical submarine cables sales.

(3) Sophisticated Materials Forecast

Net sales in this segment are forecast to amount to 222.8 billion yen (including 214 billion yen in sales to outside customers), and operating income is projected to total 4 billion yen.

Factors positively affecting sales include the effects of M&A transactions (The relevant M&A transactions are those providing for the transfer of the LCD COF business of CASIO MICRONICS CO., LTD., to Hitachi Cable; the transfer of the automotive brake hose business of U.S.-based Coupled Products, LLC to Hitachi Cable; and the acquisition of Japan-based Sosey Co., Ltd., a manufacturer of rubber rollers for office automation equipment.), which are projected to boost net sales 17.5 billion yen. If this effect is excluded, net sales would be approximately unchanged from the previous fiscal year.

(4) Others Forecast

Net sales in this segment are forecast to amount to 17 billion yen (including 3.5 billion yen in sales to outside customers), and operating income is projected to total 0.5 billion yen.

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Questions and Answers

Q.	If tax reforms cause changes to the useful lives of various items for depreciation purposes, what will be the effect on Hitachi Cable?
A.	While this is a very preliminary estimate*, it appears that the reform might boost annual depreciation expense by approximately 4 billion yen. The greatest impact would be to our Tsuchiura works' facility of copper products, for which the useful life would be reduced to 7 years from the current 12 years. Looking at individual business segments, it is noteworthy that the Sophisticated Materials segment accounts for more than half of the Company's depreciation expense. *This is a comparison of depreciation expenses with respect to residual value as of March 31, 2008, representing the difference between depreciation expense as calculated based on the pre-reform method and depreciation expense as calculated based on the the post-reform method.
Q.	Which business segment is affected most by the impact of currency exchange rate factors?
A.	Almost all the Company's businesses are affected by currency exchange rate factors, but the impact on optical submarine cables business is becoming particularly large. We are assuming a yen-dollar rate of US$1=100 yen for fiscal 2009 for the purpose of performance projections. For every additional yen of yen appreciation, our operating income is impacted by approximately 0.2 billion yen.
Q.	What are your current expectations regarding your business operations in fiscal 2009?
A.	We are being strongly affected by currency exchange rates. While we are hedging currency exchange rate risks and taking other countermeasures, the sharp appreciation of the yen during a short period of time made it difficult to quickly adjust prices for new export-related orders, and the impact of this problem will extend through the first half of fiscal 2009. In addition, the weakening of U.S. consumption is having an impact-in particular, it is giving a rocky start for such new operations as those in automobile brake hoses. In view of the large scale of the U.S. economy, there is also concern regarding the impact of U.S. economic trends on exports to China and elsewhere as well as the impact on the Japanese economy.
Q.	What are the current trends regarding mainstay products in the Sophisticated Materials segment?
A.	The large drop in COF prices has depressed sales, but we currently have a considerable amount of orders. Accordingly, we estimate that our COF business performance will be lagging behind targets until some time in April or May 2008 and subsequently recover. All the flat panel display manufacturers are planning to increase their production; so, we anticipate a rise in our COF business volume. There are synergies being generated by our acquisition of CASIO MICRONICS's COF operations, and we believe the Group is on a strong footing in this business field. Conditions for business in dynamic random access memory (DRAM) products appear to have begun bottoming out, and we anticipate an improved performance in that field from July.
Q.	What is the impact of M&A transactions on your profitability?
A.	Our acquisition of CASIO MICRONICS's COF operations is believed to have the effect of increasing our net sales by 10 billion yen. As the assets we acquired are already fully depreciated, the impact on profitability is expected to be minimal. Our acquisition of U.S. automotive brake hose operations and an Austria-based manufacturer of medical-use cables are expected to have some effects on our profitability, but those effects will be largely offset by goodwill depreciation expenses; so, the effect on our profitability is expected to be small for the time being.
Q.	What is the situation of the Information and Telecommunications Networking segment if the impact of currency exchange rates is excluded?
A.	We project that information network business performance, including that related to new generation networks, will be somewhat better than in fiscal 2008. Regarding wireless systems, we anticipate a continued strong performance centered on mobile phone base stations.
Q.	What are the prospective trends regarding your equity-method profitability in fiscal 2009?
A.	During the first quarter of fiscal 2008, some of our marketing affiliates recorded evaluation gains accompanying the rise in copper prices. We are not assuming such evaluation gains in fiscal 2009, but we are expecting a rise in the fundamental profitability of our equity-method affiliates; so, we are assuming that equity-method profitability in fiscal 2009 will be approximately unchanged from the level in fiscal 2008.
Q.	Could you explain your sales increase projections for individual business segments?
A.	In the Wire and Cables Segment, we are projecting that net sales will rise approximately 10 billion yen. Regarding industrial-use cables, major electric equipment manufacturers are planning to build new plants, and we anticipate a related rise in orders from this summer. Regarding electronic wires and wiring devices, we are emphasizing growth in probe cables for medical applications and are, therefore, anticipating a rise in overall electronic wires and wiring devices sales, including the sales of overseas subsidiaries. Regarding magnet wires, we are emphasizing growth in sales to automobile manufacturers and are projecting higher sales. Regarding the Information and Telecommunications Networking segment, we are assuming some growth in sales volume, but we are also anticipating some impact from currency exchange rate changes, particularly regarding the optical submarine cables business, and that is the main reason for projecting a decrease in sales. As for the Sophisticated Materials segment, we are projecting a net rise in sales volume. We are anticipating a recovery in TAB and copper strip product operations, and we also expect that our business in gallium nitride substrates will get on track.
Q.	How is your situation regarding cash outflows associated with M&A transactions?
A.	Cash outflows associated with M&A transactions in fiscal 2008 were minimal. Accordingly, M&A-related expenses will be recorded in fiscal 2009. To fund those transactions, we are using borrowings from financial institutions along with funds pooled with other companies, including other companies in the Hitachi Group.
Q.	Are your information and telecommunications networking operations developing in line with your medium-term management plan?
A.	We are currently considering the worldwide development of our information and telecommunications networking operations, but there are some portions of our business development programs in China and elsewhere that are not progressing satisfactorily. In addition, sales of VoIP products and some other kinds of products are not growing vigorously. We believe we can expect demand from next-generation network (NGN)-related businesses beginning from fiscal 2009. During the first half of fiscal 2009, we are anticipating that shipments of products centered on the Apresia series will exceed initial projections, although there remain concerns regarding the possibility that this trend may weaken during the latter half of the year. Accordingly, we are taking such measures as our July 2007 move to consolidate our information and telecommunications networking operations within a subsidiary -Hitachi Cable Networks, Ltd.- and we hope to keep the performance of those operations at the fiscal 2008 level or higher. Regarding optical submarine cables business, the volume of information and telecommunications-related demand is considerable, and it appears likely that market scale will remain large through 2009. In wireless systems, we are emphasizing antenna products for mobile phone base stations etc. We are releasing new products, and we expect those operations to remain robust for the time being. We are working on such initiatives as those involving new tower construction projects and new product launches.
Q.	What are the prospective trends in demand for industrial cables and electric power cables?
A.	With respect to construction-related demand, we have seen a trend of slight decrease since the latter half of fiscal 2008. On the other hand, from this summer and subsequently, we are anticipating a rise in the volume of demand associated with large-scale construction projects, including demand for industrial cable. Moreover, we have sustained a strong performance in the cables for railway cars since 2006, and we are anticipating that this trend will continue at least through about 2011.