ALPHA Corporation Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions of JPY)
   FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of Change (%) Factors
Sales 46,749 47,674 (1.9) -
Operating income 1,705 2,160 (21.1) -
Ordinary income 2,788 1,837 51.8 -
Net income 1,709 1,072 59.4 -
Automobile Parts Business
Sales Japan 15,608 20,342 (23.3) 1)
North America 9,400 8,698 8.1 2)
Asia 15,438 13,283 16.2 3)
Operating Profit Japan 425 1,537 (72.3) -
North America (531) (538) - 4)
Asia 1,528 920 66.1 5)

1) Sales - Japan
-Sales in Japan were lower year-on-year due to expenses involved with the Company's transferring production operations outside Japan in line with the initiatives its customers are taking to localize their production overseas of vehicles that they had been exporting from Japan.
2) Sales - North America
-Sales increased year-on-year, thanks to higher vehicle-production levels by OEMs.
3) Sales - Asia
-Sales increased year-on-year, thanks to higher vehicle-production levels by OEMs.
4) Operating Loss - North America
-The region reported an operating loss due to increased expenses for the year, which were incurred for initial start-up costs involved with transferring its production operations from the U.S.A. to Mexico, which it completed.
5) Operating Profit - Asia
-Operating profit increased due to improving production efficiencies and streamlining operations.


R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 1,398 1,310 1,279
Automotive Components 1,001 954 942

R&D Activities

Automotive Components
  • Advanced developments: Development of door-system parts/products designed to reduce weight and energy consumption, and the development of exterior door handles providing collision-safety features in addition to improved style in terms of the handles'  quality feel, solid feel, and operability, reached the stage to where fundamental design structures and actual vehicle testing is now possible.
  • The Company has won actual customers for its sensor units that make use of authentication technology, receiving a lot of inquiries.
  • The Company is unifying both the designs and in-vehicle conditions for key-sets and exterior and interior door handles that varied for every vehicle model, systematizing products and standardizing parts, while working to reduce costs and raise the level of development efficiencies.
  • The Company is working to increase its cost competitiveness by switching from global standards to product specifications optimally suited to the particular local needs of developing countries, already making preparations to launch commercial production of automotive parts after having received firm orders from its major customers.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 3,517 2,666 2,269
-Total capital investment for Fiscal Year ended Mar. 31, 2013, was 3,517 million yen.
-The Company invested to;
add, rationalize and upgrade production facilities;
enhance and strengthen non-production facilities such as its R&D facilities.

Investments Outside Japan

- The Company announced that it will set up a new subsidiary in Xiangyang, Hubei Province, China, which will be engaged in manufacturing and selling of automotive parts. Capitalized at 35 million yuan, approximately 430 million yen, it will be owned 25 percent by the Company and 75 percent by its subsidiary Alpha (Guangzhou) Automotive Parts Co., Ltd. The new company is expected to begin its operations in August 2013. The Company recently established three manufacturing sites to expand its production capacity in the global market: an Indian plant in March 2011, a second Mexican plant in November 2011, and an Indonesian plant in July 2012. (From a press release on October 30, 2012)

Planned Capital Investment (Automotive Components)

(As of Mar. 31, 2013)
Type of facility Planned investment
(in millions of JPY)
Start Completion
Alpha Industry (Thailand) Co., Ltd.
(Prachinburi, Thailand)
Machinery to manufacture products 232 2013.04 2014.03
Alpha (Guanzhou) Automotive Parts Co., Ltd.
(Guangzhou, Guangdong, China )
Machinery to manufacture products 245 2013.04 2014.03
Buildings 176 2013.04 2014.03
Alpha Industry Jalisco, S.A. DE. C.V.
(Jalisco, Mexico)
Machinery to manufacture products 714 2013.04 2014.03
Buildings 392 2013.04 2014.03