9 | Hitachi Cable, Ltd. CSR Report 2011

Report on the Great East Japan Earthquake Impact of the Disaster and the Hitachi Cable Group’s Responses

Again, we would like to express our deepest sympathy for everyone who has suffered due to the disas-ter and are hoping for the quickest recovery and restoration in the disaster region. On March 11, 2011, immediately after the earthquake, Hitachi Cable established an emergency task force, led by the presi-dent, at its Head Offi ce. Through the taskforce, the Company has implemented a number of recovery measures made possible by Groupwide cooperation.

The Great East Japan Earthquake caused significant damage to production facilities operated by the Hitachi Cable Group. In particular, Tohoku Rubber Co., Ltd., in the Minato area of Miyagino Ward, Sendai City, Miyagi Prefecture, and Hitachi Cable’s Minato Works, in Kuji-cho, Hitachi City, Ibaraki Prefecture, were affected by the tsunami. Specifi cally, the production facilities on these works’ first floors were completely flooded. Also, the earthquake caused damage to certain buildings and pro-duction facilities at fi ve of Hitachi Cable’s works as well as Group company works in Ibaraki Prefecture. Immediately after the earthquake, each works started implementing emergency measures. At works situated in regions where tsunami warnings were announced, the evacuation of employees was prioritized. At works in other regions, designated staff swiftly launched response measures, such as inspecting for leaks in storage tanks, treatment facilities and gas facilities and closing plumbing valves. After completing these measures, all personnel evacuated to safe places as aftershocks persisted. Investigations conducted after the tremors had mostly subsided confi rmed that our environmental facilities—namely, pipes connected to a hydrochloric acid tank and others serving a heavy oil tank—were damaged. We also confi rmed leaks of plasticizing agents and the displace-ment of a caustic soda tank. Luckily, we were able to confi ne such damage and leaks within the premises of

these works and, accordingly, avoid any accident that would place an environmental burden on the works’ sur-roundings. In addition to these incidents, we confi rmed that some equipment contaminated with polychlorobi-phenyl (PCB) that was being stored on the premises of certain works was carried by the tsunami to locations outside their perimeters. Hitachi Cable is currently reviewing and examining its response to and measures taken after the disaster. The Company will use the fi ndings from these reviews and examinations to improve its emergency response mea-sures and disaster drills.

　　　Environmental Emergency Measures after the Great East Japan Earthquake

Recovering heavy oil leaking into a conduit within the Toyoura Works

Major Activities after Great East Japan Earthquake

Activities Lead by the Head Offi ce Conditions at Our Works(In Ibaraki Prefecture and the Tohoku Region)

March 11to 13

14:46 Magnitude 9.0 earthquake occurred in the Pacifi c coast of the Tohoku region

● Established an emergency task force at the Headquarters

● Started holding daily meetings through a teleconference system connecting the Head Offi ce and Data Center located in the Hitachi region, where our works are sited

● Started activities to confi rm the safety of employees and their families and the status of damage to our facilities

● Started the delivery of relief supplies, including water, food and other daily necessaries, from the Head Offi ce, branch offi ces and the Group companies to the Hitachi and Sendai regions

● Hitachi Cable’s Minato Works in Hitachi City, Ibaraki Prefecture, and Tohoku Rubbers’ Headquarters Plant reported on facility damage due to fl ooding caused by the tsunami

● The supply of electricity, city gas and water was cut off at the works in Ibaraki, Miyagi and other prefectures. Emergency measures were implemented at manufactur-ing lines and facilities at each works.

● Electricity supply to the Tsuchiura Works resumed on March 12

March 14to the End of March

● Confi rmed safety of all Group employees● Operated Hitachi Group commuter buses to support

disaster recovery (Akihabara, Tokyo ⇔ Ibaraki Prefecture)

● Donated ¥10 million as the Hitachi Cable Group to the Central Community Chest of Japan

● The supply of electricity, city gas and water to our works in the Hitachi region resumed gradually.

● Restoration activities at each works launched after elec-tricity supply resumed.

● Carpooling was promoted and charter buses were hired to counter the gasoline shortage.

● The Tsuchiura Works in Tsuchiura City and the Densen Works in Hitachi City returned to normal operations by the end of March.

● Other works, excluding the Minato Works and Tohoku Rubber Co., Ltd., returned to normal operations from the beginning of April

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A number of Hitachi Cable Group works and companies are located on the Pacific coast in a vast region spanning from Ibaraki Prefecture to the Tohoku region. The earth-quake and tsunami caused significant damage to build-ings and production facilities at each of these sites. At present, the Group’s major production sites affected by the disaster have achieved almost full recovery thanks to recovery measures promoted on a Groupwide scale.

■Sites That Suffered Minor Damage• Hitachi Cable, Ltd. Tsuchiura Works (Tsuchiura City, Ibaraki

Prefecture) • Hitachi Cable, Ltd. Densen Works (Hitachi City, Ibaraki

Prefecture)• Hitachi Cable Precision Co., Ltd. Miyako Office (Miyako City,

Iwate Prefecture)

■ Sites That Suffered Damage but Achieved Quick Recovery• Hitachi Cable, Ltd. Hitaka Works (Hitachi City, Ibaraki

Prefecture) • Hitachi Cable, Ltd. Toyoura Works (Hitachi City, Ibaraki

Prefecture) • Hitachi Cable, Ltd. Takasago Works (Hitachi City, Ibaraki

Prefecture) • Tonichi Kyosan Cable, Ltd. Ishioka Office (Ishioka City, Ibaraki

Prefecture)

■ Sites That Suffered Significant Damage Caused by Tsunami, Others

• Hitachi Cable, Ltd. Minato Works (Hitachi City, Ibaraki Prefecture)

• Tohoku Rubber Co., Ltd. Headquarters Plant (Sendai City, Miyagi Prefecture)

　　　Recovery Measures at Production Sites

Recovery activities

The Hitachi Cable Group worked assiduously to establish a business continuity plan (BCP) in line with the Hitachi Group’s policy on and guidelines for BCP formulation. Our BCP is intended to minimize the impact of suspen-sions of operations due to large-scale earthquakes or other disasters or events that may disrupt the social infra-structure.

After the Great East Japan Earthquake, we swiftly implemented response measures in accordance with the basic action policy defined in our BCP. It is true, however, that certain shortcomings of our BCP were revealed in its implementation. Having learned some lessons in the aftermath of the disaster, we will use our new-found knowledge to enhance our BCP.

　　　Our Business Continuity Plan

At the Industrial Infrastructure Products Group, we started production facility recovery activities by forming teams, each consisting of four to five employees, and these teams checked the status of damage to electrical and other facilities at Hitachi Cable Group works. When we were trying to conduct facility inspections, the elec-tricity supply was temporarily suspended. This meant that the only way to verify the integrity of the power dis-tribution lines was to conduct visual inspections. At our Hitaka Works alone, there are about 110 transformer facilities. So checking all these facilities took a lot of time and posed significant difficulties. The blackouts continued. So, we could carry out inspection and recovery activities only during the day. Moreover, we were short on gasoline, so we had to use bicycles to travel within the works. Despite these diffi-culties, all of us, as well as other Group employees, remained high-spirited, everyone sharing a passion for restoring the works as quickly as possible. A strong sense of mission united us. Thanks to this, we were able at a relatively early point to see that recovery was within reach despite the significant scale of damage. The experience of the disaster renewed our apprecia-tion of facility design that factors in the effects of earth-quakes and other unexpected events.

VOICE　

Takuya Soma Machine Design Section,

Ken Sakayori Construction Section,

Hiroshi Shinozaki Manufacturing Section,

Toshimitsu Ohnishi Manufacturing Section,

Takahiro Shiozawa Manufacturing Section,

Production Engineering Department,Industrial Infrastructure Products Group(From left)

11 | Hitachi Cable, Ltd. CSR Report 2011

Participating in the nationwide effort to rein in peak power consumption during summer, and in line with the Japanese government’s energy saving plan, the Hitachi Cable Group is working toward a 15% cut in its own con-sumption in the regions served by Tokyo Electric Power Company (TEPCO) and Tohoku Electr ic Power Company. In addition, the Group is proactively promoting power saving initiatives in other regions. During the period from July to September 2011, as a Hitachi Group company each works and offi ce located in Ibaraki Prefecture implemented a holiday rotation system that optimized the work schedules of individual employ-ees. Through this system, we strove to level out our daily power consumption over the entire week. Also, we start-ed monitoring our power consumption more closely and began disclosing our power consumption status in-house. This monitoring and information dissemination helped strengthen power consumption management so that each site could keep its consumption level below an allowable level. We have promoted various other initiatives aimed at saving electricity. Implemented at all of our business sites in Japan, these initiatives included the reduced use of lighting systems, the optimization of air-conditioning sys-

tem settings, the partial suspension of elevator operation at the Head Offi ce and the early launch of the “Cool Biz” program, which allows employees to don lighter weight office wear. Moreover, Hitachi Cable has encouraged Group works and companies to grow plants to create “green curtains” for windows. Green curtains are effec-tive in preventing rises in room temperature. Green cur-tains have been created at more than 10 Group works and companies.

　　　Saving Electricity in Summer

　　　Our Disaster Relief Activities

Through the Central Community Chest of Japan, the Hitachi Cable Group donated ¥10 million for the victims of the disaster and for use in relief and recovery activities in the disaster region. For Group employees who were affected by the disaster, Hitachi Cable and its labor union cooperated to collect charitable donations from Group employees in Japan and overseas in addition to the relief

money system established by the Company. A total of ¥3.5 million was collected, and it was included in the special relief money provided to employees affected by the disaster. In the course of this endeavor, overseas Group companies offered assistance, sending us relief money and emergency supplies as well as thousand paper cranes.

Monetary Donations

The Head Office, branches and Group companies of Hitachi Cable contributed food stuffs and bottled water. In addition, Hitachi Cable contributed such essential goods as toilet paper and detergents. These relief sup-plies were delivered to the works and Group companies in disaster areas of Ibaraki Prefecture and Miyagi Prefecture. Also, the Kisai Plant of Hitachi Cable Group company Hitachi Alloy, Ltd. is located in Kazo City, Saitama Prefecture. Near this plant is a former site of Kisai High School, which has been designated as a refuge site for the residents of Futaba Town, Fukushima Prefecture. The Group delivered a four-ton-truck load of relief supplies to this refuge site, including toilet paper and detergents.

�Relief Supplies

Local governments and companies located in the disas-ter region suffered critical damage to their buildings and facil ities, making it dif f icult for them to function. Specifi cally, many could not make damage assessments regarding their backbone and other IT systems, systems that would have been helpful to have in promoting recov-

ery activities and carrying out operations. They could nei-ther repair these systems, nor were they able to secure the buildings required for these systems’ safe storage and stable operation. In response, Group company Hitachi Cable Networks, Ltd. launched a program to support recovery and resto-

Support through Business Activities

Relief supplies waiting for delivery

Growing bitter gourds to create “green curtains” and save electricity

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The entire city of Hitachi, Ibaraki Prefecture, was without water over two weeks after the earthquake. As Hitachi Cable’s Hitaka Works has its own well to supply drinking water within the site, it was able to provide water to local residents from morning through early evening, which it did for about a week starting from March 14 when the electricity supply to the site was restored and the electric pump could be operated.

One of the biggest issues since the disaster is what to do with mountains of rubble, debris and other waste. In Hitachi City alone, such waste is estimated to amount to several thousand tons. As an emergency measure, Hitachi Cable offered its Hitaka athletic field for use as a temporary site for waste collected from northern Hitaka City, assisting local municipalities in promoting recovery activities.

Support for Local Residents in the Disaster Region

Providing water to local residents at the gate of the Hitaka Works Hitaka athletic field used as a temporary waste collection site

ration activities in the disaster region. Through this pro-gram, Hitachi Cable Networks has provided analysis and repair services for damaged IT equipment and network systems while offering space for equipment and system storage within the Group’s data center in Hitachi City. These services were provided either free of charge or at special rates. Also, Hitachi Cable supported the energy-saving efforts of companies affected by electricity shortage in the Kanto and Tohoku regions. More specifically, Hitachi Cable made “SmartStream”*1—an energy-saving tech-nology nurtured by its production bases—partially avail-able to the public free of charge via its website. Based on control systems that use our proprietary programmable logic controller (PLC),*2 the SmartStream technology is expected to contribute to energy savings for cleanrooms, large shopping centers and data centers, all of which often use large-scale air-conditioning systems. Its provision of services for customers in the midst of emergency situations has earned Hitachi Cable high

praise. For example, Softbank Mobile Corp. requested that we perform inspections on and recovery work on their mobile phone network base stations. In recognition of our swift response and effective services, Softbank Mobile sent us a letter of appreciation. *1 SmartStream is a registered trademark of Hitachi Cable, Ltd. in

Japan.*2 PLC is a control device that uses micro computers exclusively for

sequence control.

Data center of the Hitachi Cable Group

The water supply program was carried out by the 37 members of the marathon and basketball teams at the Hitaka Works. As we have received kind support for our sporting activities from local community members, we were happy to be able to do something in return for them. The disaster reminded us of the importance of water. We were so touched by warm thanks and com-ments offered by local residents through blogs and twit-ter. We would not like to see disasters like this one occur ever again. Still, it provided an invaluable opportunity to reaffirm that we are members of the community.

VOICE　

Keisuke Umetsu (Basketball Team)Production Planning Department, Industrial Infrastructure Products Group

Takumi Ohwada (Marathon Team)Electoronic Wires Department, Hitachi Cable Fine-Tech, Ltd.

Koji Ozaki (Basketball Team)Production Planning Department, Industrial Infrastructure Products Group(From left)