Hitachi Cable, Ltd.

1 Hitachi cable , Parts Business Strategy March 30, 2007 Shinichi SusukidaExecutive OfficerDeputy group Executive, Electronic & Automotive Products group General Manager,Automotive Business Promotion Center 2 2007 Hitachi cable , Ltd. All rights Parts Auto Parts Business StrategyBusiness StrategyContents Initiatives Targeting FY2011 The Auto Parts Business Hitachi cable group Initiatives 3 2007 Hitachi cable , Ltd. All rights reserved. Hitachi cable group Initiatives Company OverviewEstablished: April 10, 1956 Capital: billionRepresentative: Norio Sato, President & CEOC onsolidated net sales: billion (FY06)Consolidated operating income: billion (FY06)Consolidated workforce: 15,199 employees (As of March 31, 2006)Stock exchange listings: 1st Section, Tokyo and Osaka stock exchanges (Code: 5812)Consolidated subsidiaries: 44 companies(domestic: 18; overseas: 26; as of March 31, 2006)4 2007 Hitachi cable , Ltd.

2 All rights reserved. Hitachi cable group Initiatives Basic Management ApproachCorporate VisionDevoting Ourselves to Peak Performance in CommunicationContributing to society by continuing to improve the speed, accuracy and efficiency of energy and information Code of ConductSurpass Customers ExpectationsContinue to Progress in ManufacturingKeep to the Straight and Narrow5 2007 Hitachi cable , Ltd. All rights reserved. Hitachi cable group Initiatives Medium-Term Management Plan BEGIN Basic Growth StrategyProgress in manufacturingProgress inhuman assets developmentBusiness growth and expansionSustained growth in profitabilityBusiness growth and expansionSustained growth in profitabilityRecord stable profits in core businesses and concentrate resources in fields promising growth Record stable profits in core businesses and concentrate resources in fields promising growth FY07 Plan BEGIN: Breaking through with our Energy and Going for INnovation approach Begin Transformation by Mustering group -wide Strengths StructuralReform Phase New Growth PhaseCompany s Second FoundationCompany s Second Foundation6 2007 Hitachi cable , Ltd.

3 All rights reserved. Hitachi cable group Initiatives Medium-Term Management Plan BEGIN Concentration of Management Resources Electronics wires and cables (industrial cables and magnet wires) Copper products Brake hoses Electronics (digital home appliances and semiconductors) Wireless, broadcasting and information networks Automotive (HEV, electric components, and sensors)Aggressive investments in major target fieldsEnsure profits from core productsConcentrate management resources on major target fields7 2007 Hitachi cable , Ltd. All rights PartsAuto PartsBusiness StrategyBusiness StrategyContents Initiatives Targeting FY2011 The Auto Parts Business Hitachi cable group Initiatives8 2007 Hitachi cable , Ltd. All rights reserved. FY06 billion44(1%)Others The Auto Parts Business Positioning of the Auto Parts BusinessAuto Parts Auto Parts BusinessBusiness1,955(46%)1,519(36%)732( 17%)Wires and CablesInformation and Telecommunications NetworkingSophisticated Materials11 9 2007 Hitachi cable , Ltd.

4 All rights reserved. The Auto Parts Business Business History Milestones 1969 Started automotive hose business delivered brake hoses 1971 Started production of automotive wire 1987 Established hose manufacturing company in the 1994 Established hose manufacturing company in Mexico 1996 Started producing electric parts started producing ABS sensors 1999 Established hose manufacturing company in the Philippines 2000 Established hose manufacturing company in the Started producing power supply cables for HEVs 2003 Established hose manufacturing company in Thailand Expanded magnet wire business delivered rectangular magnet wires for HEVs 2005 Established Automotive Business Promotion Center 2006 Started production of hoses in China 2007 Relocated and expanded Thai hose manufacturing companyExpanded HEV

5 Power cable harness factory in the 10 2007 Hitachi cable , Ltd. All rights reserved. The Auto Parts Business Medium-Term Plan Targets[[FY2011 Business Scale: FY2011 Business Scale: Billion]] Targets set when the Automotive Business Promotion Center was established in FY2006 (Copper: 500 thousand/ton)ActualForecast TargetTarget .. (billion/year) Sophisticated materials Magnet wiresElectric partsHosesFY11 2007 Hitachi cable , Ltd. All rights reserved. The Auto Parts Business Market Environment and Basic StrategiesKey Target FieldsCore Product FieldsTarget steady growth in the global market centered on brake hoses Core technologies accumulated in critical safety parts , management capabilities Chance to enter market due to restructuring of the auto parts industry in North America Grow by introducing products in a timely manner to respond to environmental issues , enhance safety and facilitate onboard information systems Hitachi cable s Strategy Increasing demand for electric motors stemming from environmental issues and surging oil pricesEnvironmentEnvironment Technology Trends Increasing driving and pedestrian safetySafetySafetyInformationInformation Advances in equipping cars with information systems, such as next-generation telematics12 2007 Hitachi cable , Ltd.

6 All rights Brakes Steering Suspension SafetyMotors Inverters Batteries Environment The Auto Parts Business Hitachi group s Targeted System Fields13 2007 Hitachi cable , Ltd. All rights reserved. The Auto Parts Business Environment-Related ProductsHEV power cable harnessesMagnet wires for HEVsDual-gauge copper strips for power devicesEnvironment14 2007 Hitachi cable , Ltd. All rights reserved. The Auto Parts Business Drive Control System-Related Products *ABS: antilock brake systemABS sensorsBrake hosesTorque sensor coilsSafety15 2007 Hitachi cable , Ltd. All rights reserved. Car Information System-Related ProductsUWB: ultra-wideband FFC: flexible flat cableCar antennas for telematicsShielded FFC for automotive useWireless LAN, UWB antennasInformation The Auto Parts Business16 2007 Hitachi cable , Ltd. All rights reserved. The Auto Parts Business Global Development of Hose and Electric Components BusinessesWalesAyutthaya, ThailandPhilippinesDetroitSuzhou, Jiangsu Province, ChinaIndianaMexicoDensen WorksTakasago Works17 2007 Hitachi cable , Ltd.

7 All rights , MalaysiaMagnet wires: Hitachi Magnet Wire materials: TsuchiuraWorks The Auto Parts Business Global Development of the Magnet Wire and Sophisticated Materials Businesses Shanghai, China18 2007 Hitachi cable , Ltd. All rights Part Business StrategyAuto Part Business StrategyContents Initiatives Targeting FY2011 The Auto Parts Business Hitachi cable group Initiatives19 2007 Hitachi cable , Ltd. All rights reserved. Initiatives Targeting FY2011 Brake Hoses Hitachi cable market share target (Global)2006 2010 Establish global framework capable of supplying 50 million units/yearStart Hose Production in Thailand Location Amata Nakorn Industrial Estate, Chonburi Site area 13,450 Start production 2008 TopicsEstablish Assembly Factory in China Location Suzhou (on existing Hitachi cable (Suzhou) Co., Ltd. site) Start production 2007 20 2007 Hitachi cable , Ltd.

8 All rights reserved. Initiatives Targeting FY2011 HEV Power cable Harnesses HEV harness production facilityFacility expansionExpand Production Facilities at Hitachi cable Indiana, capacity on-stream 2007 Sales target billion/year ( billion/year in North America)(2010 target) TopicAC power cable harness for HEVs AC power cable harness for HEVs Cater to increasing number of hybrid vehicles in North America Strengthen system for joint development in Japan and the Cater to increasing number of hybrid vehicles in North America Strengthen system for joint development in Japan and the 2007 Hitachi cable , Ltd. All rights reserved. Magnet Wires Respond to trend for smaller, more efficient HEV electric motors with higher voltage Increase automotive applications in the magnet wire business from 30% to 50% Respond to trend for smaller, more efficient HEV electric motors with higher voltage Increase automotive applications in the magnet wire business from 30% to 50%Leading the Industry in Development of Inverter Surge Resistant Enameled Wire Helps motors achieve a longer life and higher reliability by minimizing insulation degradation caused by partial discharges which are difficult to detect during inverter surges.

9 Heat resistant to 220 C, the highest level in Japan Controls formation of composite made up of organic and inorganic materials at the nanometer levelTopic Unusually high voltage released by an inverter. This results in a partial discharge, which breaks down membranes and can quickly degrade insulation, causing motor dischargeWhat is an Inverter Surge?ConductorConductorHigh lubricated layerStructureSilica particle size 15 to 20nm C KMKED-22A Polyamide-imide LayerConductor Conductor Frequency: 50kHz Test temperature: 90 CInverter Surge Voltage Endurance Life CharacteristicsApplied Voltage (kVp)Time to Failure (h) 1 10 100 1000 10000 Inverter surge-resistant polyamide-imide wireGeneral-purpose polyamide-imide wire Initiatives Targeting FY2011 22 2007 Hitachi cable , Ltd. All rights reserved. Sophisticated Materials Attain copper materials technology for achieving high strength, high conductivity and high heat dissipation Develop a varied lineup of copper products, including high-purity oxygen-free copper, and alloys boasting high strength and conductivity Attain copper materials technology for achieving high strength, high conductivity and high heat dissipation Develop a varied lineup of copper products, including high-purity oxygen-free copper, and alloys boasting high strength and conductivityRolled Copper Foil Used in negative electrode material for lithium-ion batteries in HEVs High-precision rolling technology enables the manufacture of copper foil with uniform thickness and stable foil (negative electrode material)

10 Lithium-ion battery High-heat dissipation dual-gauge copper stripsProfile of dual-gauge copper strips Heat sink materials compatible with the larger currents of today s semiconductors Used as a high heat dissipation lead frame material for IGBT cooling modules, LEDs, use of electronics in cars Cars are being fitted with more electronics to respond to environmental issues, enhance safety and facilitate onboard information systems. Consequently, there is growing demand for technologies that can ensure the reliability of control units, batteries and other components in terms of heat dissipation and conductivity. Initiatives Targeting FY2011 23 2007 Hitachi cable , Ltd. All rights reserved. Antennas for Telematics Development of integrated car antennas for telematics communication services in North America Aim to enter automotive wireless communication field in North America Development of integrated car antennas for telematics communication services in North America Aim to enter automotive wireless communication field in North America As a leading manufacturer of wireless LAN antennas for notebook PCs, Hitachi cable has accumulated advanced design and development technologies and simulation and analysis technologies Provide antennas for GPS, SDARS (satellite radio), cellular phones and wireless LAN (11a, b, g 16e) in a single unit Respond to automotive needs, including flexibility in car design, security (tracking stolen vehicles), etc.