Date and Time:	April 30, 2010 (Fri.) 13:15-13:30
Place:	Akihabara UDX 6 Floor (UDX Conference Room)
Participantst:	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 Consolidated Results (Mr. Yoneda) 2. Overview of Consolidated Results for the fiscal year ended March 31, 2010 (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 30, 2010, 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.

*1	Each brand name that appears here is the trademark or registered trademark of their respective owners.
*2	This document is an English translation of a document prepared in Japanese. In the event of any discrepancies between the content of the Japanese and English documents, the content of the Japanese document shall take precedence.

1. Overview of Consolidated Results for the Fiscal Year Ended March 31, 2010

In fiscal 2010 (April 1, 2009 through March 31, 2010), Hitachi Cable recorded 372,450 million yen in net sales, approximately 24% below the level in the previous fiscal year. Regarding profitability, we recorded an operating loss of 6,381 million yen, which was an improvement of approximately 8.4 billion yen compared with the previous fiscal year. This reflects the large value of losses on the revaluation of inventory assets during fiscal 2009 (April 1, 2008 through March 31, 2009) and the only slight impact of inventory revaluation during the fiscal year under review. It also reflects such factors as the smooth progress we have made in reducing fixed costs. We recorded an ordinary loss of 4,939 million yen, an approximately 15 billion yen improvement compared with the previous fiscal year. This reflected the reduction of the operating loss as well as an improvement in investment income by the equity method, which returned to a positive level.

At the time it announced its financial results for the cumulative third quarter of fiscal 2010 (February 1, 2010), the Company forecast an operating loss of 4.5 billion yen, an ordinary loss of 3 billion yen, and a net loss of 8 billion yen, but the actual negative magnitude of each of these figures was greater than projected. Reasons for this included a smaller-than-expected, period-end demand rise with respect to our Wires and Cables segment and Information and Telecommunications Networking segment, delays of up to a half year in scheduled shipments of items associated with a portion of optical submarine cable projects, and the worsening of market conditions and profitability regarding tape automated bonding (TAB) business centered on products for LCDs.
Extraordinary losses amounted to 4,114 million yen, roughly in line with our projection, but the larger-than-expected ordinary loss led to the recording of a 9,110 million yen net loss, in excess of the forecast net loss of 8 billion yen.

1-1. Profit and Loss Statement

In the fiscal year under review, net sales were 372,450 million yen, operating income was a loss of 6,381 million yen, ordinary income was a loss of 4,939 million yen, income before taxes and other adjustments was a loss of 8,861 million yen and net income was a loss of 9,110 million yen.

(1)Net Sales

Net sales amounted to 372,450 million yen, approximately 120.7 billion yen below the level in the previous fiscal year.

The factors causing the change were as follows. First, copper prices averaged approximately 760 thousand yen/ton in fiscal 2009 but decreased to an average of approximately 580 thousand yen/ton in fiscal 2010. This decrease had the effect of reducing net sales by approximately 32.5 billion yen. The average yen-dollar exchange rate was 101 yen/dollar in fiscal 2009 but dropped to 93 yen/dollar in fiscal 2010, and currency exchange rate fluctuations had the effect of lowering net sales by approximately 10.7 billion yen. Excluding the impact of such factors, net change, other, amounted to approximately negative 77.5 billion yen, and the real year-on-year decrease in net sales was 16%.

Factors Accounting for Changes: Net Sales

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

Impact of the copper price fluctuations	-32.5
Impact of currency exchange rates	-10.7
Net change, other	-77.5
Total	-120.7

(2)Operating Income

We recorded an operating loss of 6,381 million yen, approximately 8.4 billion yen smaller than the operating loss in fiscal 2009.

Factors reducing operating income included the approximately 77.5 billion yen net decrease in real sales, defined as excluding the impact of changes in copper prices and currency exchange rates, which had the effect of reducing operating income by approximately 19.6 billion yen.

Factors increasing operating income included copper price fluctuations. In fiscal 2009, plunging copper prices led to the recording of a considerable loss associated with inventory valuations, amounting to approximately 8 billion yen, but the impact of such inventory valuation changes in fiscal 2010 was light. Consequently, inventory valuation changes due to copper price fluctuations were a factor that had the effect of increasing operating income 9.2 billion yen in fiscal 2010. Increases in productivity and reductions of materials procurement costs had the effect of increasing operating income approximately 6.8 billion yen. In addition, the reduction of personnel expenses and a drop in depreciation expense accompanying the restraint of capital investment enabled an approximately 16.6 billion yen decrease in fixed costs.

Factors Accounting for Changes: Operating Income

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

Profit change from net change in sales	-19.6
Impact of changes in selling prices and merchandise lineup structure	-1.8
Change in inventory valuation due to copper price fluctuations	+9.2
Increases in productivity and reductions of materials procurement costs	+6.8
Decrease in fixed costs	+16.6
Other factors	-2.8
Total	+8.4

(3) Ordinary Income (Loss)

Amounting to a loss of 4,939 million yen, the negative value of ordinary income was decreased by roughly 15 billion yen compared with the level in fiscal 2009.

Factors increasing ordinary income included a roughly 8.4 billion yen increase due to the rise in operating income and an approximately 4.3 billion yen increase due to a rise in investment income by the equity method. Investment income by the equity method amounted to a loss of approximately 2.8 billion yen in fiscal 2009, but amounted to income of approximately 1.5 billion yen in fiscal 2010. Thus, the net increase in profitability associated with investment income by the equity method was roughly 4.3 billion yen.

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	+8.4
Change in investment income by equity method	+4.3
Other factors	+2.3
Total	+15.0

1-2. Balance Sheets

Total assets amounted to 289,016 million yen, representing an increase of approximately 10 billion yen from the end of fiscal 2009 (March 31, 2009).

(1) Assets

Current assets totaled 148,491 million yen, representing an increase of about 17.8 billion yen from March 31, 2009. This reflected a rise in copper prices—which had fallen to approximately 400 thousand yen/ton at the end of fiscal 2009 (March 31, 2009), but were approximately 700 thousand yen/ton at the end of fiscal 2010 (March 31, 2010)—and an associated increase in working capital.

Fixed assets amounted to 140,525 million yen, representing a decrease of approximately 7.8 billion yen from March 31, 2009. Of this figure, tangible fixed assets amounted to 100,538 million yen, down roughly 10 billion yen from March 31, 2009. This reflects our restraint of capital investment to approximately 14 billion yen and our recording of approximately 21.5 billion yen in depreciation expense, with the difference between those figures corresponding to the bulk of the decrease.

Factors Accounting for Changes: Current Assets

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

Trade receivables	+14.2
Inventories	+7.3

1-3. Segment Information

(1) Wires and Cables

Net sales in this segment totaled 181,810 million yen, down 28% from fiscal 2009. This included sales to outside customers of 175,265 million yen, down approximately 68 billion yen from fiscal 2009. On a real basis defined as excluding the impact of changes in copper prices and currency exchange rates, net sales were down roughly 17% from the level in fiscal 2009.

Operating income was a loss of 139 million yen, a profitability improvement of approximately 2 billion yen compared with fiscal 2009. In real terms, however, the figure represented a profitability deterioration of approximately 3 billion yen, because it reflects the approximately 5.4 billion yen negative effect on fiscal 2009 performance stemming from losses on the revaluation of inventories due to the sharp decrease in copper prices.

(2) Information and Telecommunications Networking

Net sales in this segment during fiscal 2010 amounted to 64,513 million yen, down approximately 22% from fiscal 2009. This included sales to outside customers of 60,214 million yen, about 16.3 billion yen lower than the level in the previous fiscal year. On a real basis defined as excluding the impact of changes in copper prices and currency exchange rates, net sales were down roughly 19% from the level in fiscal 2009.

The segment's operating income was 955 million yen, approximately 2.9 billion yen lower than the level in fiscal 2009. This reflected such factors as a drop in information network business and a temporary hiatus in optical submarine cable shipments.

(3) Sophisticated Materials

Net sales in this segment during fiscal 2010 were 139,510 million yen, down 22% from fiscal 2009. This included sales to outside customers of 134,711 million yen, approximately 35.4 billion yen lower than in fiscal 2009. On a real basis defined as excluding the impact of changes in copper prices and currency exchange rates, net sales were down roughly 88%, from the level in fiscal 2009.

The segment recorded an operating loss of 7,826 million yen. Compared with fiscal 2009, the operating loss was reduced by approximately 9.5 billion yen. This reflects improved profitability in such areas as TAB business owing to the progressive implementation of structural reforms.

2. Fiscal 2011 Performance Forecast

2-1. Consolidated Performance Forecast (April 1, 2010 through March 31, 2011)

The consolidated performance forecast figures for fiscal 2011 call for the Company to attain 430 billion yen in net sales, 8 billion yen in operating income, 8 billion yen in ordinary income, and 4 billion yen in net income. We are employing the assumptions that copper prices will average 600 thousand yen/ton and that the currency exchange rate will average 90 yen per U.S. dollar.

(1)Net Sales Forecast

Our net sales forecast of 430 billion yen calls for increasing net sales to approximately 57.6 billion yen above the level in fiscal 2010. The assumptions we are employing regarding copper prices and currency exchange rates in fiscal 2011 are almost the same as the actual average values of those prices and rates during fiscal 2010.
Regarding the anticipated increase in sales measured on a real basis, our forecast is for approximately 58.1 billion yen in sales.

Factors Accounting for Changes: Net Sales

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

Impact of copper price fluctuations	+4.0
Impact of currency exchange rates	-4.5
Net change, other	+58.1
Total	+57.6

(2)Operating Income Forecast

Our operating income forecast of 8 billion yen calls for increasing operating income to approximately 14.4 billion yen above the fiscal 2010 level.

Factors expected to increase operating income include profit change from net change in sales, with a contribution of approximately 12 billion yen, and increase in productivity and reduction of materials procurement costs, with a contribution of approximately 5.5 billion yen.

Looking at factors expected to decrease operating income, fixed costs include personnel expenses, which are expected to increase somewhat, but also include depreciation expense, which is expected to decrease. These countervailing forces are expected to have the overall effect of decreasing operating income by approximately 0.5 billion yen.

Factors Accounting for Changes: Operating Income

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

Profit change from net change in sales	+12.0
Increase in productivity and reduction of materials procurement costs	+5.5
Impact of changes in selling prices and merchandise lineup structure	-2.0
Impact of currency exchange rates	-0.6
Change in fixed costs	-0.5
Total	+14.4

(3) Ordinary Income Forecast

Our ordinary income forecast of 8 billion yen calls for increasing ordinary income to approximately 12.9 billion yen above the fiscal 2010 level.

Factors Accounting for Changes: Ordinary Income

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

Change in operating income	+14.4
Other	-1.5
Total	+12.9

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Questions and Answers

Q.	With regard to the attainment of your fiscal 2011 performance goals, what is your current situation?
A.	In view of the global surge in demand related to digital home electronic products and semiconductors, we are now seeing a broad uptrend in the sale of our products in such related fields as copper strips, electronic wires and enameled wire. We are expecting considerable improvement in performance associated with these products during fiscal 2011. On the other hand, we also see potential risks regarding performance in business fields focused on demand associated with Japanese capital investments, such as electric power cables and telecommunications cables.
Q.	What is the outlook regarding investment income by the equity method?
A.	In fiscal 2010, robust performance by affiliates centered on those engaged in business related to electric power cables helped considerably increase investment income by the equity method. However, because we do not anticipate that this situation will continue, we are fundamentally expecting that our ordinary income will result at the same level as our operating income will result. On the other hand, our reduction to the number of joint ventures among our equity-method affiliates has lowered the risk of recording negative investment income by the equity method.