Fundamental Credo publication of next issue: August 2013 Guidelines Compliance: GRI Sustainability Reporting Guideline G3.1 by the Global Reporting Initiative (GRI) For a comparative

1 | Hitachi Cable, Ltd. CSR Report 2012

Corporate Vision of Hitachi Cable Group

Empowering Energy & CommunicationContributing to society by continuing to improve the speed,

accuracy and efficiency of energy and information

Value

Surpass Customers’ Expectations

Continue to Progress in Manufacturing

Practice the “Basics and Ethics”

Fundamental Credo

The basic credo of Hitachi Cable Group is to further ele-

vate Hitachi’s Founding Concepts of harmony, sincerity

and pioneering spirit, to instill a resolute pride in being a

member of Hitachi, and thereby to contribute to society

through the development of superior, original technolo-

gy and products.

Deeply aware that a business enterprise is itself a

member of society, Hitachi Cable Group is also resolved

to strive as a good citizen of the community towards

the realization of a truly prosperous society and, to this

end, to conduct its corporate activities in a fair and

open manner, promote harmony with the natural envi-

ronment, and engage vigorously in activities that con-

tribute to social progress.

Hitachi Cable, Ltd. CSR Report 2012 | 2

Overview

& Message

CS

R M

anagement

Social P

erformance

Environm

ental Perform

ance

Purpose of Publication and Editorial NoteThis report describes the corporate social responsibility (CSR) activities of Hitachi Cable and the Hitachi Cable Group in order to provide our many stakeholders with the clearest and most accurate explanation possible of the Group’s philosophy, plans and activities in progress. In preparing this report, we consulted the GRI Sustainability Reporting Guideline G3.1 by the Global Reporting Initiative (GRI) as well as questionnaire items on socially responsible investment (SRI) given in the Environmental Report Guideline (2007 Edition) by the Ministry of the Environment to select and provide information deemed significant for both our Stakeholders and the Hitachi Cable Group. The Group believes this report is equivalent to application level B as defined in the GRI Guidelines.

Period Covered

Mainly Fiscal Year 2011 (from April 1, 2011 to March 31, 2012)(Some earlier and later activities are also included.)

Corporations and Production Bases CoveredIn relation to our environmental activities, this report covers the production bases of Hitachi Cable and 14 domestic production companies in the Hitachi Cable Group. Furthermore, we have included some activities by 20 overseas manufacturing sites. Other descriptions in this document mainly refer to operations and activities by Hitachi Cable and include information of its Group companies.• Hitachi Cable, Ltd.Densen Works, Hitaka Works, Takasago Works, Minato Works, Toyoura Works and Tsuchiura Works• Group Companies at Hitachi Cable SitesHitachi Cable Logi-Tech, Ltd., Hitachi Cable Fine Tech, Ltd., Hitachi Cable MEC-Tech, Ltd., Hitachi Cable Networks, Ltd.,*1 Hitachi Magnet Wire Corp., Hitachi Wire & Rod Ltd., Hitachi Cable Precision Co., Ltd. (at Hitachi Works), Advanced Cable Systems Corp. and J-Power Systems Corp.*2

• Domestic Group CompaniesHitachi Alloy, Ltd., Tonichi Kyosan Cable, Ltd., Tonichi Kyosan Technos, Ltd. *3, Tohoku Rubber Co., Ltd., Hitachi Cable Precision Co., Ltd. (at Yonezawa Works)*4 • Overseas Group Companies A*5

Hitachi Cable (Johor) Sdn. Bhd., Shanghai Hitachi Cable Co., Ltd., Hitachi Cable (Singapore) Pte. Ltd., PHCP, INC., Thai Hitachi Enamel Wire Co., Ltd. and the wire and cable plant of Hitachi Cable (Suzhou) Co., Ltd.• Overseas Group Companies B*6

Hitachi Cable PS Techno (Malaysia) Sdn. Bhd., Hitachi Cable Vietnam Co., Ltd., AHCL (Thailand) Co., Ltd., Hitachi Cable Philippines, Inc., the assembly plant of Hitachi Cable (Suzhou) Co., Ltd., Giga Epitaxy Technology Corporation, Shenzhen Hitachi Cable Co., Ltd., Suzhou Hitachi Cable Precision Co., Ltd., Hitachi Cable Manchester Inc. *7, Hitachi Cable Automotive Products USA, Inc. *7, HC Queretaro, S.A. de C.V., Hitachi Cable UK, Ltd. and Hitachi Cable Austria GmbH

*1 Business activities within Hitachi Cable works only are covered.*2 Production activities within Hitachi Cable works only are covered.*3 Tonichi Kyosan Cable, Ltd. from April 1, 2012.*4 Activities for global warming prevention and resource recycling promotion only are covered.*5 Based on GREEN21-2015, resources and energy consumed and disposal and CO2 emission into environment are

covered.*6 The input of resources and energy, the output to the environment and CO2 emissions are covered.*7 Hitachi Cable America Inc. from April 1, 2012.

Period of PublicationAugust, 2012Scheduled publication of next issue: August 2013

GuidelinesCompliance: GRI Sustainability Reporting Guideline G3.1 by the Global Reporting Initiative (GRI)For a comparative table between this report and the Guideline, please refer to our website.http://www.hitachi-cable.co.jp/about/publish/eco/2012.htmlReference: Environmental Report Guideline (2007 Edition) by the Ministry of the Environment

ContactHitachi Cable, Ltd.Corporate Social Responsibility OfficeTEL: 03-6381-1050 FAX: 03-5256-3240http://www.hitachi-cable.co.jp/en/inquiry/index.html

DisclaimerThis report contains forward-looking statements and descriptions of plans, estimates and pro-jections as well as facts about the Hitachi Cable Group in the past and at present. Such state-ments and descriptions reflect our current assumptions and expectations of the future events based on information available at present. Accordingly, they are inherently susceptible to uncertainties and changes in circumstances, and future performance and events may differ. This report has been translated into English from the Japanese version. In cases where the Japanese description is different from the English description, the Japanese description shall take preference.* Empowering Energy & Communication is a registered trademark of Hitachi Cable, Ltd.

C O N T E N T S

CSR Management

Social Performance

Environmental Performance

13 Brief Overview of the Hitachi Cable Group

15 Our Businesses

17 A Message from the President

Special Feature

19 Information Security 11 CSR Management

13 CSR Medium-Term Targets/Plans and Results

15 Corporate Governance

17 Compliance/Intellectual Property Protection

Special Feature

19 Restructuring Sales Systems to Improve Customer Relationships

21 Engagement with Customers

25 Engagement with Suppliers

26 Engagement with Shareholders and Investors

28 Engagement with Employees

33 Engagement with Society and Local Communities

Special Feature

37 Reducing Peak Power Consumption 39 Environmental Policies of the Hitachi Cable Group 40 Environmental Management Status 44 Environmental Accounting 45 Environmental Action Plan and Results Evaluation 47 Input of Resources and Energy and Output to the Environment 48 Global Warming Prevention 51 Promoting Material Recycling 53 Chemical Management in Production Activities 55 Green Procurement 56 Environment-Conscious Products 58 Site Data

62 Third-Party Opinion/ Response to the Third-Party Opinion


Non-Consolidated　　Consolidated Non-Consolidated　　Consolidated

Non-Consolidated　　Consolidated

Industrial Infrastructure Products91.4 (21%)

164.3

Electronic andAutomotive Products

(38%)

Information Systems Devices and Materials48.0 (11%)

Metal Materials and Component Products

86.6 (20%)

Sales Companies

42.2(10%)

Total 432.5(¥ billions)

600

400

200

0

Net Sales(¥ billions)

FY2007 2008 2009

244.7

349.2298.1

241.7

432.5493.2

372.5

2010

258.7

419.3

566.0

Operating Income (Loss)(¥ billions)

R&D Expenses(¥ billions)

FY2007 2008 2009

8.5

10.2 10.7

9.1 8.8

11.1

9.6

2010

8.7 9.0

10.5

Sales by Business Segment (Consolidated; Results in FY2011)

0.8

FY2007 2008 2009

11.1

(9.8)(14.7)

(3.5)(6.4)

2010

(5.0)

23.130

10

20

0

–20

–10

12

6

9

3

0

2011

2011

(4.7)

2.0

2011

Brief Overview of the Hitachi Cable Group

Corporate Data (As of March 31, 2012)

Trade Name: Hitachi Cable, Ltd.

Established: April 10, 1956 (Founded in 1918)

Head Office Location: Akihabara UDX, 4-14-1, Sotokanda,

Chiyoda-ku, Tokyo 101-8971, Japan

Capital: ¥25,948 million

Number of Employees: 3,406 (non-consolidated); 14,142 (consolidated)

Profile

Ever since the spin-off from Hitachi, Ltd. in 1956, Hitachi Cable, Ltd. has pursued “communication” technologies demanded by the age in the fields of “energy” and “information” as a wire and cable manufacturer to serve as a core business in the Hitachi Group. The company has expanded its business domains, includ-ing industrial infrastructure products; electronic and automotive products; information systems devices and materials; and metal materials and component products, offering such products as wires and cables to support information transmission and power supply, a wide variety of materials and parts to transmit electric signals and heat in different equipment and various information and telecommunication network devices. Hitachi Cable continues to develop a comprehensive range of products and services to transmit energy and information more quickly, safely and efficient-ly and provide them to various fields of businesses in order to sup-port customers throughout the world and contribute to society.

Major Bases (As of March 31, 2012)

Europe

Japan

◆ Area Controlling Office

North and Central AmericaSoutheast Asia

China

●Tonichi Kyosan Cable, Ltd.*2

●Tonichi Kyosan Technos, Ltd.*2

●Hitachi Alloy, Ltd.●Hitachi Wire & Rod Ltd.●Hitachi Cable Precision Co., Ltd.●Hitachi Cable Fine Tech, Ltd.●Hitachi Cable Logi-Tech, Ltd.●Hitachi Cable Networks, Ltd.●Hitachi Cable MEC-Tech, Ltd.●Hitachi Magnet Wire Corp.●Tohoku Rubber Co., Ltd.●Hitachi Cable Rubber Technology Co., Ltd.■Hitachi Densen Shoji, Ltd.■Hokkai Hitachi Densen Kihan, Ltd.

United States　●Hitachi Cable Automotive Products USA, Inc.*1

　●Hitachi Cable Manchester Inc.*1

　◆Hitachi Cable America Inc.*1

Mexico　●HC Queretaro, S.A. de C.V.

United Kingdom　◆Hitachi Cable Europe Ltd.Austria　●Hitachi Cable Austria GmbHUkraine　●Akutron LLC

Thailand　●AHCL (Thailand) Co., Ltd.　●Thai Hitachi Enamel Wire Co., Ltd.　■HCAS Thai Trading Co., Ltd.Singapore　●Hitachi Cable (Singapore) Pte. Ltd.　◆Hitachi Cable Asia Pacific (HCAP) Pte. Ltd.Malaysia　●Hitachi Cable (Johor) Sdn. Bhd.　●Hitachi Cable PS Techno (Malaysia) Sdn. Bhd.The Philippines　●Hitachi Cable Philippines, Inc.　●PHCP, INC.Vietnam　●Hitachi Cable Vietnam Co., Ltd.

　●Shanghai Hitachi Cable Co., Ltd.　●Hitachi Cable (Suzhou) Co., Ltd.　●Suzhou Hitachi Cable Precision Co., Ltd.　●Shenzhen Hitachi Cable Co., Ltd.　●Giga Epitaxy Technology Corporation　◆Hitachi Cable (China) Trading Co., Ltd.　■Hitachi Cable Asia Ltd.　■Hitachi Cable Trading (Dalian F.T.Z.) Co., Ltd.

●Manufacturing Bases　 ■ Sales & Marketing Bases

Business Overview (Figures are rounded off to the nearest hundred million)

*FY2011 includes the effect from the unification of accounting period

Overview

& Message


Japan 297.1 (69%)

Asia 100.5 (23%)

North America 25.6 (6%)

Europe and Others 9.3 (2%)

Total 432.5(¥ billions)

Japan 6,568 (46%)

North America 784 (6%)

Asia 6,210 (44%)

Europe and Others580 (4%)

Total 14,142(Persons)

Net Income (Loss)(¥ billions)

16,000

12,000

8,000

4,000

0

Number of Employees(Persons)

Sales by Region (Consolidated; Results in FY2011) Number of Employees by Region (Consolidated; Results at the End of FY2011)

2007 2008 2009

4,074 4,134 4,154

16,23015,335

2010

4,058

16,06415,917

10.0

5.0

0

–50.0

FY2007 2008 2009

6.2

(9.2) (9.1)

2010

(11.5) (13.0)

10.7

(53.8)

(38.8)(22.8) (22.8)

2011 2011

3,406

14,142

Non-Consolidated　　Consolidated Non-Consolidated　　Consolidated (At Fiscal-Year End)

Major Bases (As of March 31, 2012)

Europe

Japan

◆ Area Controlling Office

North and Central AmericaSoutheast Asia

China

●Tonichi Kyosan Cable, Ltd.*2

●Tonichi Kyosan Technos, Ltd.*2

●Hitachi Alloy, Ltd.●Hitachi Wire & Rod Ltd.●Hitachi Cable Precision Co., Ltd.●Hitachi Cable Fine Tech, Ltd.●Hitachi Cable Logi-Tech, Ltd.●Hitachi Cable Networks, Ltd.●Hitachi Cable MEC-Tech, Ltd.●Hitachi Magnet Wire Corp.●Tohoku Rubber Co., Ltd.●Hitachi Cable Rubber Technology Co., Ltd.■Hitachi Densen Shoji, Ltd.■Hokkai Hitachi Densen Kihan, Ltd.

United States　●Hitachi Cable Automotive Products USA, Inc.*1

　●Hitachi Cable Manchester Inc.*1

　◆Hitachi Cable America Inc.*1

Mexico　●HC Queretaro, S.A. de C.V.

United Kingdom　◆Hitachi Cable Europe Ltd.Austria　●Hitachi Cable Austria GmbHUkraine　●Akutron LLC

Thailand　●AHCL (Thailand) Co., Ltd.　●Thai Hitachi Enamel Wire Co., Ltd.　■HCAS Thai Trading Co., Ltd.Singapore　●Hitachi Cable (Singapore) Pte. Ltd.　◆Hitachi Cable Asia Pacific (HCAP) Pte. Ltd.Malaysia　●Hitachi Cable (Johor) Sdn. Bhd.　●Hitachi Cable PS Techno (Malaysia) Sdn. Bhd.The Philippines　●Hitachi Cable Philippines, Inc.　●PHCP, INC.Vietnam　●Hitachi Cable Vietnam Co., Ltd.

　●Shanghai Hitachi Cable Co., Ltd.　●Hitachi Cable (Suzhou) Co., Ltd.　●Suzhou Hitachi Cable Precision Co., Ltd.　●Shenzhen Hitachi Cable Co., Ltd.　●Giga Epitaxy Technology Corporation　◆Hitachi Cable (China) Trading Co., Ltd.　■Hitachi Cable Asia Ltd.　■Hitachi Cable Trading (Dalian F.T.Z.) Co., Ltd.

●Manufacturing Bases　 ■ Sales & Marketing Bases

Business Overview (Figures are rounded off to the nearest hundred million)

*1 Hitachi Cable America Inc. acquired Hitachi Cable Automotive Products USA, Inc. and Hitachi Cable Manchester Inc. as of April 1, 2012.*2 Tonichi Kyosan Cable, Ltd. acquired Tonichi Kyosan Technos, Ltd. as of April 1, 2012.


Outstanding technological prowess for building electric power and telecommunications infrastructureAs one of Japan’s top electric wire makers, Hitachi Cable provides wires and cables that are used in diverse areas, from electric power facilities to general building construction and industrial applications. With our advanced technologies and ample expertise accumulated since our founding, we provide optimal products for our customers.

Responding to the latest needs for compact, high-performance and energy-efficient productsWith technological prowess and expertise gained through the development and manufacture of electric wires and cables, Hitachi Cable develops and supplies high-performance magnet wires, ultra-fine coaxial cables, harnesses and brake hoses. These specialty products contribute to the production of more compact electronics equipment and automotive electronics with higher performance and energy efficiency.

Flexible cables

Trolley wires with abrasion detec-tion line for bullet trains Metal communication cables Halogen-free extra high voltage cables

Wires and cables for rolling stock

Industrial Cables

Harnesses for use in hybrid vehicles Brake hosesMicro coaxial cables

Enameled wire for high-efficiency motors Magnet wires for wind power generators

Photovoltaic wires

Magnet WiresElectronic Wires and Wiring Devices

HandrailsABS sensors

Probe cables for ultrasound diag-nostic equipment

Automotive Components and Related Products

Our Businesses

* MLFC is a registered trademark of Hitachi Cable, Ltd. in Japan.

Industrial Infrastructure Products

Electronic and Automotive Products

Flame retardant polyflex insulated wire MLFC*

Overview

& Message


Solutions for optimal information telecommunications networkingHitachi Cable makes use of the world’s premier opto-electronic and high-frequency and wireless technologies to deliver solutions through products and technologies that represent the foundation of the Information Society, such as network equipment for telecommunications carriers and private and public enterprises, as well as antenna systems for mobile phone base stations and terrestrial digital broadcasting. In addition, Hitachi Cable produces a complete range of products, from substrates to epitaxial wafers as an expert in gallium arsenide compound semiconductors and is expanding its lineup of gallium nitride compound semiconductor products.

Varied, high-quality lineup of productsWe develop and offer a metal product lineup, using assembly and alloy technologies for copper and other metals that were cultivated in the manufacture of cable and wire. Our lineup extends to copper strips, copper foils, copper products for electric application and lead frames, that specifically meet the needs of industry.

Ethernet* switch APRESIA** for pri-vate and public sectors

Mobile phone base station antennasGaAs compound semiconductors

Ethernet* switch APRESIA** for tele-communications carriers

Antennas for terrestrial digital broadcasting Active optical cables

Information Network Wireless Systems Optical Devices

Dual-gauge copper strips

Rolled copper foils

Copper Strips

Superconducting wires

Copper products for electric appli-cation

Copper Products for Electric Application and Related Products

Lead frames for semiconductors

Lead Frames

2-metal TAB tapes

Package Materials

Compound Semiconductors

* Ethernet is a registered trademark of Fuji Xerox Co., Ltd.** APRESIA is a registered trademark of Hitachi Cable, Ltd.

Information Systems Devices and Materials

Metal Materials and Component Products


A Message from the President

Contributing to the realization of a sustainable society by working to ensure sincere and honest corporate management

Overview

& Message


Accomplishing Our Medium-Term Management Plan and Reviving as a High Profitability Company

FY2011 began in the midst of turmoil immediately following the Great East Japan Earthquake. Despite the relatively smooth progress of restoration activities, FY2011 proved to be a difficult year for Japanese companies as they faced such challenges as historically high yen rates and summer-time power shortages. Reflecting such uncertain operating conditions, Hitachi Cable revised Plan “BRIDGE,” launching Renewed Plan “BRIDGE” in September 2011. The newer plan adheres to the basic policy of the original, namely, “Restoring the Hitachi Cable Group’s status as a highly profitable enterprise and reshaping itself into a truly global entity.” Accordingly, we will promote additional measures in response to changes in the operating environment in the areas of selection and concen-tration of business operations, the reduction of fixed expens-es and the enhancement of product competitiveness, which are key initiatives for achieving targets set by the plan. Through these actions, we have made a commitment to rein-forcing our management foundation and undertaking busi-ness structure reforms. As part of initiatives to reshape the Company into a truly global entity, Hitachi Cable is positioning industrial infrastruc-ture, electric power infrastructure and next-generation ener-gy, and information and telecommunications infrastructure as priority target areas; promoting efficient operations at over-seas production bases; and capturing infrastructure-related demand, mainly in rapidly growing emerging countries. Based on this, we aim to become a highly profitable enter-prise from a global perspective. In addition, since its founding as a provider of wires and other social infrastructure-related products, the Hitachi Cable Group has made concerted efforts through its business activities to establish its status as a company that supports and contributes to society. Such efforts are underpinned the Renewed Plan “BRIDGE” medium-term management plan.

Realizing a Sustainable Society

In order to contribute to the creation of a sustainable society, 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 pro-duction activities while making concerted efforts to preserve biodiversity. Regarding its products, services and transport operations, the Group promotes environment-friendly product design while meticulously managing the chemical content in its products through cooperat ion wi th i ts suppl ie rs. Simultaneously, the Group continues to promote upgrades to production facilities as it promotes reductions in energy usage and CO2 emissions during product transport. We further clarified ecosystem preservation initiatives out-lined in the Hitachi Cable Group’s Action Guidelines for Environmental Conservation in March 2011 as we promoted efforts to preserve biodiversity—a crucial issue confronting the human race—in our daily business activities. In addition, all Hitachi Cable business sites and Group companies are tackling issues related to the protection of nature and biodi-versity at their respective locations through, for example, par-ticipation in regional programs and activities.

Continuously Practicing the “Basics and Ethics” as a Member of Society

The Hitachi Cable Group practices the “Basics and Ethics,” one of the values supporting its corporate vision. Specifically, we are committed to promoting business activities in harmo-ny with society and undertaking those activities in a sincere and honest manner as a member of the international commu-nity. In January 2011, we formulated the Hitachi Cable Group Code of Conduct which clearly defines the action guidelines that all Hitachi Cable Group executives and employees must comply with. In line with the code, we established rules relat-ed to legal compliance, environmental protection, ensuring safety, respecting human rights and ensuring sound informa-tion security. In addition, we constantly work to ensure that all Group executives and employees act in accordance with the “Basics and Ethics” code. Through these actions, Hitachi Cable aims to realize its corporate social responsibility. For instance, tight power supplies in the summer of FY2011 due to the suspension of operations at domestic nuclear power plants in the aftermath of the disaster became a major social problem. The Group responded by making a unified effort to set a national goal of the power consumption limits issued by the Japanese government to reduce power consumption. As a result, we achieved targets, enabling us to meet our responsibilities as a corporate citizen. Amid efforts to undertake business activities in a sincere manner, the Hitachi Cable Group will continue to enhance two-way, open communication with its stakeholders, includ-ing customers, shareholders, investors, business partners and local communities. By disclosing information in a timely and appropriate fashion, we encourage the proper under-standing of the Hitachi Cable Group among stakeholders. To establish trust-based relationships with its stakeholders, the Hitachi Cable Group conducts transparent, sincere and hon-est corporate management based on its commitment to the “Basics and Ethics”. In closing, the Corporate Social Responsibility Report 2012 is a tool that is intended to facilitate communication between us and our stakeholders. So, we welcome your can-did 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.

President & CEOHideaki Takahashi

Fundamental Credo publication of next issue: August 2013 Guidelines Compliance: GRI Sustainability Reporting Guideline G3.1 by the Global Reporting Initiative (GRI) For a comparative

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