Alpine Electronics, Inc. Business Report FY2010
|(in millions of JPY)|
|FY2010||FY2009||Rate of Change(%)||Factors|
|Current net income||6,029||(1,249)||-||-|
|Audio systems division|
-Sales of the Company’s own-brand products designed for auto makers increased due to the strong recovery in production and sales of new vehicles by major customers in the North American and European markets, and due the strong trend in the volume of products targeted to the Chinese market.
|Information/communication systems division|
-The Company posted increased sales of its own-brand products due to the rising percentage of the Company’s onboard product content in cabin-interior displays, and due to increased unit-sales. This was in line with the recovery in production and sales in the North American market of luxury and large-sized vehicles, in which the Company’s onboard content ratio of multi-functional devices such as car-navigation systems rose. It was also due to the growing trend of European luxury-car makers enjoying strong sales of new cars in China.
- The Company will enhance its business structure in China. The company, which operates production facilities in the country, is going to strengthen its local development function and reorganize its sales and marketing operations to improve the autonomy of its Chinese business. This move will allow the company to better respond to the market needs, as "inquires from Chinese automakers are increasing", says president Toru Usami. Alpine's Chinese operations will start developing car navigation systems in addition to developing and producing car audio systems. Sales at the company's in-vehicle electronic device business currently make up more than 10 percent of its end-market sales. Although a significant increase is seen in the Chinese auto industry in terms of sales volume, the market has yet to grow to the level where high performance navigation systems widely used in Japan become equally popular. By localizing its development function, Alpine intends to develop products that best meet the needs of Chinese customers in a short time at low cost, which, the company expects, will boost its sales volume. (From an article in the Nikkan Jidosha Shimbun on October. 5, 2010)
Outlook for FY2011
|(in billions of JPY)|
|(in millions of JPY)|
|Audio System Division||2,927||3,247
|Information/ Communication System Division||13,323||14,944
The Company conducted R&D activities in its OEM Business targeted to Japanese and non-Japanese car makers, developing and introducing AVNC systems that are becoming more popular worldwide; and working to respond to product developments on displays targeted to the expanding North American market.
Licensing of Technology from Other Companies
(As of Mar. 31, 2011)
|Contract signed with||Country||Contract details||Contract period|
Laboratories Licensing Corporation
|U.S.A.||Licensing of patent rights on noise reduction devices for DVD players etc.
||From Jan. 1, 1977 until the termination of patent period|
|Koninklijke Philips Electronics N.V.||Netherlands||Licensing of patent rights on DVD players||From Oct. 12, 1999
To Dec. 27, 2012
|Thomson S.A.||France||Licensing of patent rights on DVD players||From Oct. 1, 2000
To Sep. 30, 2005
After that, renewed every 5 years automatically.
|Toshiba Corporation||Japan||Licensing of patent rights on DVD players||From Dec. 31, 2000
To Dec. 31, 2007
|MPEG LA LLC||U.S.A.||Licensing of patent rights on DVD players||From Jan. 1, 2002 until the termination of patent period|
|Microsoft Corporation||U.S.A.||Licensing of usage rights to basic software.||From Jul. 1, 2003
To Dec. 31, 2012
|(in millions of JPY)|
|Audio System Division||2,011||2,084||5,323|
|Information/Communication System Division||2,864||2,287||4,830|
Capital Investments in FY2010
Audio Systems Division
-The Company invested 448 million JPY for tangible fixed assets, mainly dies; and 203 million JPY to develop software.
-The Company invested 570 million yen in installing additional equipment to manufacture audio systems at Taicang Alpine Electronics Co. Ltd. in China.
Information/Communication Systems Division
-For the purpose of developing new products and increasing production efficiency, the Company invested 1,051 million yen in acquiring tangible, fixed assets; and 476 million yen in developing software.
-The Company invested 155 million yen in installing additional equipment to manufacture information/communication systems at Alpine Electronics Manufacturing of Europe Ltd.
||Planned investment amount (million JPY)||Starting date||Planned completion|
|Alpine Electronics, Inc.||Iwaki city,
|Machinery/devices||319||Apr. 2011||Mar. 2012|
|Industrial tools, equipment, and dies||2,480|
|Dalian Alpine Electronics Co. Ltd.||Dalian, China||Machinery/devices||323||Apr. 2011||Mar. 2012|
|Alcom Electronicos de Mexico, S.A. de C.V.||Reynosa,
|Machinery/devices||291||Apr. 2011||Mar. 2012|