Financial Overview

(in million JPY)

		FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales		52,318	46,749	11.9	-
Operating income		1,811	1,705	6.2	-
Ordinary income		2,778	2,788	(0.4)	-
Net income		857	1,709	(49.9)	-
Automobile Parts Business
Sales	Japan	12,144	15,608	(22.2)	-Sales were lower because major customers changed their business operations, from exporting vehicles from Japan to building them overseas.
	North America	12,718	9,400	35.3	-Sales increased thanks to higher vehicle production volumes of its major customer and preferred currency translation.
	Asia	20,382	15,438	32.0	-Sales increased due to higher vehicle production volumes of its major customer.
Operating income	Japan	(860)	425	-	-
	North America	(193)	(531)	-	-Operations were in the red because of costs incurred for launching new products and setting up plants.
	Asia	2,213	1,528	44.8	-Operating profit increased due to improving production efficiencies and streamlining operations.

New Company

-In June 2013, the Company established ALPHA Korea Co., Ltd., a wholly-owned subsidiary, to procure and sell automotive parts in Goesan County, Chungcheongbuk-do, Korea. It was capitalized at KRW 360 million.

Contract

-Tailgate sensor using infrared-light technology; for the Nissan X-Trail launched in Dec. 2013. The sensor makes it possible for passengers to open and close the tailgate, without any need to touch the vehicle.

Business Policy

-The ratio of sales to the Nissan Group as of the end of FY2013, which ended March 2014, was 57.4%. The Company plans to increase its sales to other OEMs.

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	1,277	1,398	1,310
-Automotive Components	997	1,001	954

Product Development

Hands-free tailgate sensor
-The Company developed a hands-free infrared sensor that opens and closes tailgate. The sensor combines the Company's expertise in optics technology with infrared technology and authentication technology that it developed for its infrared, keyless remote control. Passengers carrying intelligent keys in their hands or bags can open or close the tailgate simply by swiping hands or any objects near the sensor-sensitive area of the tailgate. It is being equipped on the Nissan X-Trail.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	2,507	3,517	2,666

-Major investment activities in FY ended Mar. 31, 2014 are as follows:

Company name	Type of facility	Capital expenditure (in million JPY)
Alpha Industry Jalisco, S.A. de C.V.	Buildings	1,085
	Machinery to manufacture products	404
	Dies	102
Alpha (Guangzhou) Automotive Parts Co., Ltd.	Machinery to manufacture products	87

Investments Outside Japan

<Mexico>
-The Company has held an opening ceremony for Alpha Industry Jalisco, S.A. de C.V., its second manufacturing facility in Mexico. The new plant has established to produce automotive door handles with an investment of USD 41 million (approximately JPY 4 billion). The plant supplies products to North American countries including Mexico and is also scheduled to deliver them to the South American market. (From a press release on February 27, 2014)

Planned Capital Investment (Automotive Components)

(As of Mar. 31, 2014)

Name (Location)	Type of facility	Planned investment (in million JPY)	Start	Completion
Subsidiaries
Alpha Industry Queretaro, S.A. de C.V. (Queretaro, Mexico)	Machinery to manufacture products	82	2014.04	2015.03
Alpha Industry Jalisco, S.A. de. C.V. (Jalisco, Mexico)	Machinery to manufacture products	229	2014.04	2015.03
Alpha Industry (Thailand) Co., Ltd. (Prachinburi, Thailand)	Machinery to manufacture products	194	2014.04	2015.03
Alpha (Guangzhou) Automotive Parts Co., Ltd. (Guangdong, China)	Buildings	214	2014.04	2015.03
	Machinery to manufacture products	128	2014.04	2015.03