Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change(%)	Factors
Overall
Sales	202,905	201,257	0.8	-
Operating income	5,649	11,155	(49.4)	-
Ordinary income	6,521	10,771	(39.5)	-
Current net income	4,572	6,029	(24.2)	-
Audio systems division
Sales	55,786	69,897	(20.2)	-Sales turnover was lower as a result of reduced production volume at the company's major customers that were impacted by the Great East Japan Earthquake and the flooding in Thailand.
Operating income	786	3,609	(78.2)
Information/communication systems division
Sales	147,119	131,359	12.0	The Company's sales volume increased as a result of a greater vehicle-content ratio of mainly its highly functional products such as onboard navigation systems and displays because of strong sales in the U.S.A. and China of vehicles manufactured by its major customers that are luxury-vehicle manufacturers. This was in spite of the Company's major customers in Japan posting reduced production volumes because of the Great East Japan Earthquake and the flooding in Thailand.
Operating income	9,081	12,062	(22.2)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Outlook for FY2012

(in billions of JPY)

	FY ending Mar. 31, 2013 (Forecast)	FY ended Mar. 31, 2012 (Actual)	Year-on-year Fluctuation
Sales	2,200	2,029	8.4
Operating income	60	56	16
Ordinary income	60	65	(7.7)
Net income	50	45	11.1

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Group	17,200	16,251	18,191
Audio System Division	3,800	2,927	3,247
Information/ Communication System Division	13,400	13,323	14,944

- The Company announced on Jan. 18, 2011 that it has agreed with Chleon Automotive Oy of Finland on the partnership concerning joint development of the next-generation automotive infotainment systems.  The partners plan to jointly develop a new product compatible with the cloud computing and to launch it in the market by the end of this year.  Chleon will develop the application management platform, while Alpine will sell the automotive device.  The device will utilize the always-connected service through the Chleon's Cloud Server to provide various services including internet radio, SNS (social networking service) and information as well as driving support and remote diagnostics and data collection on vehicles. (From an article in the Nikkan Jidosha Shimbun on January 19, 2012)

- The Company announced that it will establish a new R&D center in San Jose, California, U.S.A. The purpose of the establishment is to expand the company's presence in the in-vehicle cloud computing business and to advance its vehicle communication systems using smartphones. In North America, the company has been conducting research and development activities in Torrance, California, which was established in 1994 by Alpine Electronics Research of America, Inc., its subsidiary. Approximately 150 engineers engage in research and development of in-vehicle electronic devices at the facility. The new R&D center in San Jose, which will function as a branch of the existing facility, is scheduled to open on October 1 with five engineers. (From an article in the Nikkan Jidosha Shimbun on August 25, 2011)

Audio System Division
-The Company was active in the development and sales of CD head units in response to the further diversification of media and audio devices.
-In the OEM division, the Company further developed low-cost head units in response to the local needs of automakers based in emerging-market countries.

Information/ Communication System Division
-In Europe, the Company developed the ICS-X08, an onboard information system, as a solution for onboard smart phones.
-The Company formed a commercial alliance with Chleon Automotive (based in Finland) and will conduct joint R&D activities to respond to cloud computing in the onboard equipment market.
In its OEM business, the Company developed products that respond to market needs for moving/movable mechanisms that are larger, higher resolution, more refined, and better definition.
In the area of ITS/Smart Communications, the Company is actively participating in field testing and proving in Japan.

Licensing of Technology from Other Companies

(As of Mar. 31, 2012)

Contract signed with	Country	Contract details	Contract period
Dolby 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

Capital Investment

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Group	5,328	4,882	4,378
Audio System Division	1,378	2,011	2,084
Information/Communication System Division	3,949	2,864	2,287

Capital Investments in FY ended Mar. 31, 2012
Audio Systems Division
-The Company invested 451 million JPY for tangible fixed assets, mainly dies; and 112 million JPY to develop software.
-The Company invested 142 million yen on production facilities at Alpine Electronics Manufacturing of Europe, Ltd.
-The Company invested 199 million yen on production facilities at Dalian Alpine Electronics Co., Ltd. in China.

Information/Communication Systems Division
-For the purpose of developing new products and increasing production efficiency, the Company invested 1,633 million yen in acquiring tangible, fixed assets; and 405 million yen in developing software.
-The company invested 475 million yen in Alpine Electronics Manufacturing of Europe Ltd.; and 274 million yen at Dalian Alpine Electronics Co., Ltd. in China.

New Facilities

Name	Location	Activities/Products	Planned investment amount (million JPY)	Starting date	Planned completion
Alpine Electronics, Inc.	Iwaki city, Fukushima Pref.	Production facilities and other facilities, and R&D activities	2,898	Apr. 2012	Mar. 2013
Alpine Electronics Manufacturing of Europe, Ltd.	Biatorbagy, Hungary	Production facilities and other facilities, and R&D activities	754	Apr. 2012	Mar. 2013
Dalian Alpine Electronics Co. Ltd.	Dalian, China	Production facilities and other facilities, and R&D activities	459	Apr. 2012	Mar. 2013
Alcom Electronicos de Mexico, S.A. de C.V.	Reynosa, Mexico	Production facilities and other facilities, and R&D activities	417	Apr. 2012	Mar. 2013