Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	432,540	419,279	3.2	-
Operating income	1,966	788	149.5	-The Company was able to improve its financial performance year-on-year due to its successful initiatives to lower costs through improving its operating structure and effectively lowering fixed-costs.
Ordinary income	927	(1,765)	-	-
Net income	(22,758)	(12,993)	-	-
Electronic & Automotive Products
Sales	164,340	147,524	11.4	-Financial performance at the automotive products business improved year-on-year due to a recovery starting from the second quarter of the fiscal year in automobile production, which had stagnated due to the Great East Japan Earthquake. After the recovery started, there was strong growth in product demand.
Operating income	2,405	3,039	(20.9)	-

Restructuring

-The Company announced that it plans to merge Hitachi Cable America Inc. (HCA), the regional headquarters for the Americas with Hitachi Cable Automotive Products USA, Inc. (HCAM), HCA's wholly owned subsidiary, which manufactures and sells auto parts, and Hitachi Cable Manchester Inc. (HCM), also HCA's wholly owned subsidiary, which manufactures and sells electronic cables and optical fiber cables. The effective date of the merger will be April 1, 2012. HCA, as the surviving company, will absorb HCAM and HCM, which will be dissolved upon the merger. In addition, the group's regional headquarters for Europe, HCE has decided to make Hitachi Cable UK, Ltd. (HCUK), a consolidated subsidiary that manufactures and sells auto parts, a wholly owned subsidiary through share acquisition and to take over all businesses of that company. The effective date of the transfer will be December 31, 2011. (From a press release on November 1, 2011)

-The Company has announced it will withdraw from activities related to the development, manufacture, and sales of copper tubes in Japan effective March 31, 2012. The copper tube business generates net sales of 17,763 million yen in the 2011 financial year and holds a manufacturing facility in Tsuchiura, Ibaraki prefecture, Japan. In addition, sale of certain assets involved in this segment to Sumitomo Light Metal Industries Group is under consideration. (From a press release on October 28, 2011)

-The Company announced that it will conclude a stock exchange agreement, thereby transforming its consolidated subsidiary Hitachi Cable Sales Co. into its wholly-owned subsidiary effective November 28, 2011. After the stock transfer is completed, Hitachi Cable Sales will be merged with its wholly-owned subsidiary Hitachi Cable Trading Co. on January 1, 2012. Hitachi Cable Sales is now engaged in sales of electric wires, cables and copper products. (From a press release on October 25, 2011)

Mid-Term Management Plan

-The Company reviewing its FY2010-2012 midterm business plan "Plan Bridge", mapped out the "Renewed Plan Bridge" with additional new management measure. The renewed plans calls for 440 billion yen in sales, 18 billion yen in operating profit, 20 billion yen in ordinary profit and 15 billion yen in net profit. Auto parts manufacturing facilities in North America and Europe will be integrated into one company in the U.S. and one company in the U.K. respectively, through consolidations with related sales and communications cable companies. In the area of industrial infrastructure, Hitachi Cable will propose power harnesses characteristic of high bending performance and small size for use in hybrids, targeting U.S. and European carmakers in order to boost sales of these products. In the areas of power infrastructure and next-generation energy, Hitachi Cable will step up activities to meet demands for windings for hybrid and electric vehicles, as well as for wind power generators, having an eye to the smart-city demand in China in collaboration with companies of the Hitachi Group. (From an article in the Nikkan Jidosha Shimbun on September 13, 2011)

Outlook for FY ending Mar. 31, 2013

(in millions JPY)

	FY ending Mar. 31, 2013 (Forecast)	FY ended Mar. 31, 2012 (Actual Results)	Rate of Change (%)
Sales	380,000	432,540	(12.1)
Operating income	12,000	1,966	510.4
Ordinary income	12,000	927	1,194.5
Net income	6,000	(22,758)	-

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Group	8,776	9,034	9,612
Electronic & Automotive Products	1,003	-	-

R&D Structure

-The Company conducts its R&D activities at its technical headquarters (technical center) and at the development departments in its business headquarters.

-Maintains close cooperation and collaboration with R&D centers in the Hitachi Group, of course including Hitachi itself. On occasion, it conducts joint research with R&D centers operated by its customers and the government.

Product Development

The world's smallest compact connector
-The Company announced on August 30 that it has developed the world's smallest compact connector with a unique structure for use in power harnesses for next generation vehicles. Both male and female terminals in the new compact connector are flat. The simple unique structure allows a single spring to apply surface pressure to multiple terminals and reduces the connector size by more than 40 percent compared with previous products. In addition to downsizing and simple structure of electric harnesses, two types of connectors are made available: one using extended cables and the other using a bus bar. (From an article in the Nikkan Jidosha Shimbun on August 31, 2011)

Coils for an inverter surge resistant rectangular wire
-The Company announced that Hitachi Magnet Wire Corp., a group company that manufactures coils, has developed an inverter surge resistant rectangular wire for use in electric and hybrid vehicles. Its volume production has started since May 2011. (From a press release on May 12, 2011)

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Group	12,933	10,153	13,862
Electronic & Automotive Products	5,662	5,004	5,603

Electronic & Automotive Products
-The Company invested mainly to expand facilities and equipment producing wires for equipment/devices and wiring parts, and in mainly equipment designed to handle coiling operations.