Alps Electric Co., Ltd. Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of Change
Sales 546,423 526,500 3.8


Operating income 6,851 15,171 (54.8) -
Ordinary income 7,659 14,335 (46.6) -
Net income (7,074) 4,175 - -
Electronic Components
Sales 268,085 268,916 (0.3) 1)
Operating income 227 4,590 (95.1) -
Automotive Infotainment
Sales 219,852 200,248 9.8 2)
Operating income 2,324 5,634 (58.8)
*Since FY ended Mar. 31, 2013,  former name "Audio Equipment division" has been changed to "Automotive Infotainment division".

Electronic Components - Automotive market

-The Company, by taking advantage of its global production structure and sales network, improved its business performance. Electronic controls leading to improved automotive safety and lower energy consumption are forecasted to grow significantly also in the future. Sales in this sector reached 140,000 million yen, a 5.7% increase year-on-year.

Automotive Infotainment

-The onboard information devices business (run by Alpine Electronics) saw a recovery in both new-vehicle production and sales at OEMs. Due to strong new-vehicle sales in North America, this business recorded strong sales of OE products to OEMs.
-Several factors impacted profits. Among these were negative currency translation due to the high valuation of the yen, changes to the sales structure of OE products sold to OEMs, and the continued high prices of materials/parts costs for onboard displays and hard disks.

Mid-Term Business Plan (FY ending Mar. 31, 2014 - FY ending Mar. 31, 2016)

Electronic components
-Achieve 200 billion JPY in sales to the automotive market.
Targets Strategies
1. Promote customer-targeted marketing strategies
-Adapt to modular development strategy of customers and become a strategic partner. (Global response capability; Japan, Europe, U.S.A. + Emerging countries)
-Actively propose next-generation products to existing customers;
Human-machine interface, Connectivity integrated products, Cockpit products.
-Make joint proposals with Alpine Electronics.
2. Expand Market Share of Existing Products
-Body electronics, By-wire, Steering angle sensors, Throttle position sensors, Brake position switches
3. Create New Products
-Touch pads, Capacitive sensors, Communications modules, Antennas, Current sensors

Outlook for FY ending Mar. 31, 2014

(in 100 millions of JPY)
  FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of Change
Sales 6,000 5,464 9.8
-Electronic Components 3,000 2,680 11.9
(Automotive market) 1,550 1,400 10.7
-Automotive Infotainment 2,390 2,198 8.7
Operating income 190 68 179.4
Ordinary income 193 76 153.9
Net income 95 (70) -

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


R&D Expenditures

(in millions JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 28,674 28,098 28,124
Electronic components 11,747 10,817 11,813
Automotive Infotainment 16,884 17,252 16,251

R&D Structure

Electronic components
-The Company, which consolidated the three separate R&D functions that had been working independently at their respective business sectors, collaborates with technical organizations and universities in and outside Japan, such as the University of Cambridge in the U.K.

R&D Facilities

Facility Location
Sendai R&D Center Miyagi Pref., Japan

R&D Activities

Electronic components
-The Company is engaged in R&D activities covering a wide-range of areas, from parts to complete systems, positioning sensors used in engine chassis in their own domain, which need to contribute to automotive safety, convenience, and comfort, as well as to the protection of the environment.
-The Company is conducting R&D activities on input devices that vehicle occupants operate.

Automotive Infotainment
-In the car electronics sector, which is mainly the territory of Alpine Electronics, the Company is merging, raising the level of technology, and expanding the field to telecommunications systems (both exterior and interior) and driver-assist systems, in addition to systems based on audio, visual, and navigation.
-In order to respond to the diversification and globalization of consumer markets, and respond to customer needs also, the Company is continuing to collaborate with its electronics components business and continually optimizing its four-region R&D structure based on Japan, the U.S.A, Europe, and China.

Product Development

Multi Control Device
- The Company announced that it has developed the RKJXW2 Series Multi Control Device for integrated control of in-vehicle equipment, including car navigation, audio, and air conditioning systems. Samples of the new product will be available starting in December 2012. Combining a stick controller for eight direction and center push operation with its EC40A ring encoder for rotary control, the RKJXW2 Series enables a wide range of operations with a single device. Mass production is scheduled to start in April 2013, with planned monthly production of 10,000 units in January 2015. The Company developed this RKJXW2 Series at the Wakuya Plant, its engineering headquarters in Miyagi Prefecture, Japan, and will manufacture the products at Dalian Alps Electronics Co., Ltd., based in Dalian, Liaoning Province, China. (From a press release on December 18, 2012)

Advanced Sensor for a Variable-nozzle type Turbocharger
- The Company has developed an advanced sensor for a variable-nozzle type turbocharger, and will start mass production of the new product within the next three or four years. The structure of the new sensor for controlling an actuator has been changed from an integrated type to a discrete type separating an element and a magnet in order to enhance precision in detecting air-intake negative pressure. The Company is making further efforts to polish the new technology for its early commercialization and stepping up marketing activities of the new product targeting manufacturers of automobiles and turbochargers. (From an article in the Nikkan Jidosha Shimbun on Oct. 22, 2012)

Digital Radio Tuner for Automobiles
- The Company announced on June 6 that it has developed the TDGW9 series digital radio tuner for automobiles and started mass production. The new tuner is the industry's smallest of the kind, while supporting the DAB (Digital Audio Broadcasting) digital radio standard mainly used in Europe. This is the first time for the Company to conduct high-volume production of digital radio tuners. The company is poised to expand sales of the products targeting car navigation and audio systems marketed in Europe where installation of digital radio receivers is advancing. Production of the tuners is handled at the Company's Kakuda Plant, Miyagi Prefecture. It is planning to increase its production volume to 15,000 units a month by January 2014. (From an article in the Nikkan Jidosha Shimbun on Jun. 7, 2012)

Investment Activities

Capital Expenditure

(in millions JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 31,833 34,024 23,544
Electronic components 23,845 24,509 16,671
Automotive Infotainment 6,719 5,328 4,882

Electronic components
-The Company made capital investments in building its in-house systems, and also in R&D functions and production facilities for components such as touch-panel devices for smart phones, switches, and camera actuators.

Automotive Infotainment
-The Company invested in mainly machinery in order to renew and streamline production facilities, and dies for new products.

Planned Capital Investment

(As of Mar. 31, 2013)
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 3,326 Apr. 2013 Mar. 2014
Alps Electric Co., Ltd.
(Ota, Tokyo)
Electronic components Equipment for system related 2,019 Apr. 2013 Mar. 2014
Alps Electric Co., Ltd.
Nagaoka Plant
(Nagaoka City, Niigata Pref.)
Electronic components Equipment to produce touch panels 816 Apr. 2013 Mar. 2014
Alpine Electronics, Inc.
Iwaki Plant
(Iwaki City, Fukushima Pref.)
Automotive Infotainment Manufacturing equipment, R & D, other equipment 2,686 Apr. 2013 Mar. 2014