Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	222,309	202,905	9.6	-Production and sales volumes at car makers who are the major customers recovered. Vehicle sales in North America were strong. As a result, the sales of automotive products increased. -Profit was negatively impacted due to the lower content ratio of factory installed Alpine products by car makers and the un-ending high costs of materials for onboard displays and hard disks.
Operating income	2,305	5,649	(59.2)
Ordinary income	4,291	6,521	(34.2)	-
Current net income	1,747	4,572	(61.8)	-
Audio systems division
Sales	59,107	55,786	6.0	-Sales increased as a result of the recovery in vehicle production and sales at Japanese car makers, and because of strong sales at car makers based in the U.S.A.
Operating income	232	786	(70.5)
Information/communication systems division
Sales	163,202	147,119	10.9	-In addition to robust sales by European luxury car makers and the large American car makers, vehicle production and sales at Japanese car makers also increased, resulting in higher content ratios of car navigation systems and displays. As a result, sales were higher year-on-year.
Operating income	6,709	9,081	(26.1)

Management Issues and Responses

Issue	Response
1. Creating technical innovations that can keep up with evolutionary functions being added to consumer electronic devices, particularly in smart phones.	-Establish an R&D organization with engineers in Japan, the U.S.A., Europe and China each developing software that is compatible with cloud computing. -Strengthen collaboration with Alps Electric Co., the parent company, providing total solutions for onboard devices and working to create onboard devices with advanced consumer electronics technology.
2. Strengthening cost advantages to lead the winning of business in developing countries.	-Improve Value Engineering (VE) activities and productivity in vehicle electronics by working together with suppliers. -Strengthen measures that can effectively respond to currency fluctuations. -Improve customer satisfaction by pursuing impeccable product quality, and reform indirect cost structure to enhance profitability.
3. Developing products that respond to the need for reductions in weight, energy, and costs.	-
4. Improve and upgrade driver-assist functions that ensure safety.	-

New Organizational Structure

-The Company announced changes of its business organization effective April 1. The purpose of the reform is to enhance the Company's capabilities to engineer car navigation systems and audio equipment. Major changes include establishment of a sound media development division, which is expected to facilitate internal communications for developing and producing in-car audio devices. (From an article in the Nikkan Jidosha Shimbun on Mar. 16, 2013)

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Sales	242,000	222,309	8.9
Operating income	5,000	2,305	116.9
Ordinary income	5,500	4,291	28.2
Net income	3,000	1,747	71.7

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Group	16,800	17,200	16,251
Audio System Division	3,200	3,800	2,927
Information / Communication System Division	13,600	13,400	13,323

R&D Activities

Audio System Division
-Developed and commercialized the Company's first smart-phone app, TuneIt App, that connects to the Alpine head unit, making acoustical control possible from smart phones in any vehicle. It also enables the sharing of acoustic settings.

Information / Communication System Division
-Launched the industry's largest AVN in Japan at nine inches. It is being factory installed on the Toyota "Alphard" and "Vellfire". As a optimized design for instrument panel and a totally integrated system with an exclusive start-up display for vehicles; and settings for audio, camera, and rearview, this AVN unit become the optimum onboard system being able to adjust to any vehicle.

Major Technology Licensing-in Agreement

(As of Mar. 31, 2013)

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
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 After that, renewed every 5 years automatically.
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 After that, renewed every 5 years automatically.

Capital Investment

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Group	6,719	5,328	4,882
Audio System Division	1,882	1,378	2,011
Information /Communication System Division	4,833	3,949	2,864

Capital Investments in FY ended Mar. 31, 2013

Audio System Division

(in millions of JPY)

	FY ended Mar. 31, 2013
Tangible fixed-assets, particularly dies	485
Software development	108
Capital investment in production facilities
-Manufacturing location in America "Alpine Electronics of America, Inc."	274
-Manufacturing location in Europe "Alpine Electronics Manufacturing of Europe, Ltd."	101
-Manufacturing location in China "Dalian Alpine Electronics Co.,Ltd."	223
-Manufacturing location in China "Taicang Alpine Electronics Co., Ltd."	110
-Manufacturing location in Thailand "Alpine Technology Manufacturing (Thailand) Co., Ltd."	131

Information /Communication System Division

(in millions of JPY)

	FY ended Mar. 31, 2013
Tangible fixed-assets designed to rationalize new product development and production.	1,611
Software development	359
Capital investment in production facilities
-Manufacturing location in America "Alpine Electronics of America, Inc."	551
-Manufacturing location in Europe "Alpine Manufacturing of Europe, Ltd."	391
-Manufacturing location in China "Dalian Alpine Electronics Co.,Ltd."	683
-Manufacturing location in Japan "Alpine Manufacturing Co., Ltd."	301

Planned Capital Investments

(As of Mar. 31, 2013)

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	2,686	Apr. 2013	Mar. 2014
Dalian Alpine Electronics Co. Ltd.	Dalian, China	Production facilities	803	Apr. 2013	Mar. 2014
Alcom Electronicos de Mexico, S.A. de C.V.	Reynosa, Mexico	Plant building	722	Jul. 2013	Mar. 2014
Alpine Electronics of America, Inc.	Torrance, U.S.A.	Production facilities and other facilities, and R&D activities	444	Apr. 2013	Mar. 2014
Alpine Electronics Manufacturing of Europe, Ltd.	Biatorbagy, Hungary	Production facilities	280	Apr. 2013	Mar. 2014