Alpine Electronics, Inc. Business report FY2008

Business Highlights

Financial Overview (in millions of JPY)
FY2008 FY2007 Rate of Change(%) Factors
Sales 196,666 252,071 (22.0) -
Operating income (10,645) 7,000 - -
Ordinary income (5,051) 6,403 - -
Current net income (9,290) 3,554 - -
Audio systems division
Sales 89,107 123,637 (27.9) -Sales of CD audio systems for automakers decreased in North America in the second half onward because production shifted toward small cars.
Operating income (332) 5,359 -
Information/communication systems division
Sales 108,595 129,498 (16.1) -Sales of genuine parts for automakers decreased in the North American market which is the Company's main market, because of a decline in sales of navigation systems and visual products. Those products are often installed on luxury cars and large-sized cars, but such cars saw sales decline.

-Orders for "large system products" centering on car navigation systems for European luxury car manufacturers increased and sales remained steady. However, in the second half onward, orders decreased due to a decline in production volume at automakers.
Operating income (3,709) 9,478 -


R&D Expenditure (in millions of JPY)
FY2008 FY2007 FY2006
Group 26,390 27,191 28,723
Audio System Division 6,864 7,631 7,017
Information/ Communication System Division 19,526 19,560 21,706

Licensing of Technology from Other Companies (As of Mar. 2009)
Contract signed with Country Contract details Contract period
Laboratories Licensing Corporation
U.S.A. Licensing of patent rights related to noise reduction devices for DVD players etc.
From Jan. 1, 1977 until the termination of patent period
Koninklijke Philips Electronics NV. Netherlands Licensing of patent rights related to DVD players From Oct. 12, 1999
To Oct. 11, 2009
Thomson S.A. France Licensing of patent rights related to DVD players From Oct. 1, 2000
To Sep. 30, 2005
After that, renewed every 5 years automatically.
Toshiba Corporation Japan Licensing of patent rights related to DVD players From Dec. 31, 2000
To Dec. 31, 2007
MPEG LA LLC U.S.A. Licensing of patent rights related to DVD players From Jan. 1, 2002
To Dec. 31, 2010

Investment Activities

Capital Investment (in millions of JPY)
FY2008 FY2007 FY2006
Group 10,160 8,068 12,619
Audio System Division 5,323 13,673 7,316
Information/Communication System Division 4,830 5,452 5,303

Audio Systems Division
-The Company invested 1,025 million JPY for tangible fixed assets, mainly dies; and 1,250 million JPY to develop software.

-The Company invested 1 billion 724 million yen in its production base in Europe, "Alpine Electronics Manufacturing of Europe Ltd.", in production facilities in order to respond to the automakers' request for increased production and quality requirement for customers.

-The Company invested 411 million yen for its production base in China, "Dalian Alpine Electronics Co., Ltd.", to promote automation of standard lines.

Information/Communication Systems Division
-The Company spent 1,406 million JPY for capital investments in this division in order to develop new products; and to expand and rationalize production operations.

-The Company spent 1,714 million JPY to build an information network within the Company.

-In order to raise its capacity in Europe, the Company invested 664 million JPY.

New Facility
Name Location Type of facility Planned investment amount (million JPY) Starting date Planned completion
Alpine Electronics, Inc. Iwaki city,
Fukushima Pref.
machinery/ apparatus 416 Apr. 2009 Mar. 2010
Industrial tools, equipment, and dies 2,505
Alpine Electronics Manufacturing of Europe Ltd. Biatorbagy,
machinery/ apparatus 394 Apr. 2009 Mar. 2010
Dalian Alpine Electronics Co. Ltd. Dalian, China machinery/ apparatus 238 Apr. 2009 Mar. 2010