Alps Electric Co., Ltd. Business Report FY ended Mar. 2012

Business Highlights

Financial Overview

(in millions JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 Rate of Change
Sales 526,500 550,668 (4.4)


Operating income 15,171 28,871 (47.5) -
Ordinary income 14,335 23,174 (38.1) -
Comprehensive income 6,120 6,174 (0.9)
Net income 4,175  11,136 (62.5) -
Electronic Components
Sales 268,916 296,152 (9.2) -
Operating income 4,590 12,966 (64.6) -

Business Overview

Electronic Component Division
-Sales of electronic components used in the consumer electronics sector struggled against the emergence of manufacturers in developing countries, in addition to being negatively impacted by the stagnant economy. Also, the Company's performance was greatly affected by the prolonged high evaluation of the yen. All of these factors contributed to the Division's lower sales turnover and profits for the year, when compared to the consolidated performance it posted for the previous fiscal year.

Automotive Division

-Performance at the Automotive Division generally was strong, in spite of the fact that some of its parts procurement and product sales were greatly impacted by the flooding in Thailand. Sales for the fiscal year were 132.4 billion yen, a year-on-year increase of 6%.

Recent Developments Outside Japan

-The Company established a local sales company Alps Electric (India) Pvt. Ltd. (Alps Electric India) in Gurgaon, Haryana, India in response to expansion of India's automotive and electronics sectors. The new company, which is capitalized at 25 million Indian rupees (382 thousand euros), will open for business on October 3, 2011. (From a press release on October 3, 2011)

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

Outlook for FY2010

(in billions of JPY)
  FY ended Mar. 31, 2013
FY ended Mar. 31, 2012 Year-on-year Fluctuation
Sales 565,000 526,500 7.3
-Electronic Components 288,000 268,916 7.1
Operating income 22,000 15,171 45.0
Ordinary income 19,000 14,335 32.5
Net income 10,500 4,175 151.5


R&D Expenditures

(in millions JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 28,098 28,124 27,843
Electronic components 10,817 11,813 9,612

R&D Structure

Automotive Division
- The Company conducts research and development of in-vehicle input devices and various sensors used in automotive body and drive control systems, mainly at its Furukawa Plant in Osaka. The Furukawa plant conducts activities, from developing parts, up to engineering systems products.

R&D Facilities

Sendai R&D Center Miyagi Pref., Japan

R&D Activities

-In meeting the need for developing products designed for the Chinese automotive market, the Company established its Dalian R&D Center within the Dalian Development Area in China, positioning it as its base of product development activities in China

-The Company developed a flat-surface sliding multi-input device.

-The Company created an electronic shifter, an input device for operating a vehicle's transmission/gearbox.

- The Company said on January 30 that it has developed and started mass production of the HGPRDT series high-precision magnetic sensor, a single package to detect rotation speed and direction of automotive motor magnets. The new magnetic sensor can withstand elevated temperature and high-voltage environments that automotive equipment is exposed to. The sensor technology will help control the motors of vehicle equipment such as electric door mirrors and power windows. No other manufacturer has ever mass produced a same kind of sensor. Adoption of the new magnetic sensor contributes to trimming component weight and saving space inside automotive equipment. The company is going to vigorously make proposals of the new technology to automakers by underlining the weight- and space-saving attributes of the product. (From an article in the Nikkan Jidosha Shimbun on January 31, 2012)

- The Company  opened its Electro-Magnetic Compatibility (EMC) evaluation center at the Furukawa plant in Osaki, Miyagi Prefecture, Japan. With an investment of about1.4 billion yen, the new center is built with a total floor space of 2,220 square meters. The center has added two darkrooms for evaluation of EMC and two darkrooms for evaluation of antennas, bringing the number of units to 6 in total. The Furukawa plant has research and development functions of products for civilian and automotive applications. Construction of the center adjacent to the plant is expected to make the process from development to evaluation and production faster. (From a press release on July 28, 2011)

Investment Activities

Capital Investment

(in millions JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 34,024 23,544 18,480
Electronic components 24,509 16,671 11,914

Electronic component division
- The Electronic Component Division focused its investment activities on establishing an internal computer system, developing new products such as touch panel devices for smartphones; in-vehicle sensor switches; optical modules; contact sheets for cellular phones, and upgrading its production equipment.

Capital Investment Projects

Division Details of the facility Planned investment
(million yen)
Start Estimated completion
Alps Electric Co., Ltd.
Furukawa Plant and others
(Osaki, Miyagi Pref.)
Electronic components Equipment to produce electronic components 2,528 Apr. 2012 Mar. 2013
Alps Electric Co., Ltd.
(Ota, Tokyo)
Electronic components Equipment  to produce
systems products
3,396 Apr. 2012 Mar. 2013
Alps Electric Co., Ltd.
Nagaoka Plant
(Nagaoka City, Niigata Pref.)
Electronic components Equipment to produce touch panels 1,159 Apr. 2012 Mar. 2013
Alpine Electronics, Inc.
Iwaki Plant
(Iwaki City, Fukushima Pref.)
Audio equipment Machinery, tools, and dies 2,898 Apr. 2012 Mar. 2013