Alps Alpine Co., Ltd. (Formerly Alps Electric Co., Ltd.) Business Report FY ended Mar. 2019

Financial Overview

(in millions JPY)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 Rate of Change
Sales 851,332 858,317 (0.8) -Sales fell because of poor results by the Electronics Business, even though income at the In-vehicle Information Equipment Business significantly rose.
Operating income 49,641 71,907 (31.0) -
Ordinary income 43,605 66,717 (34.6) -
Profit for the year attributable to owners of the parent  22,114 47,390 (53.3) -
Electronic Components
Sales 468,605 514,031 (8.8) -Lower sales of actuators for camera as a result of the slowdown in smartphones and lower sales of touch-panels due to customers producing their own in-house.
Operating income 29,607 52,929 (44.1) -
Automotive Infotainment
Sales 303,593 267,638 13.4 -Sales of mass-market products were flat and sales of Alpine factory-installed information-communications devices such as car-navigation systems to OEMs increased, especially to European OEMs in Europe and in greater China.
Operating income 13,921 13,735 1.4


First Mid-term Management Plan (April 2019-End of March 2022)

-Targeting sales of JPY 1 trillion and operating profit margin of 10% by 2024.
-As result of merging management functions with Alpine, the Company foresees achieving the following initiatives.

  1. Speed up expanding business by relying on Alps Electric’s strong customer base.
  2. In the in-vehicle HMI segment, develop Alps Electric’s technology in major input devices, sensing devices, and communications devices that the Company excels in terms of in-vehicle electric parts; development technology on output devices such as car-navigation systems that are at the core of Alpine’s business; and various products and seamlessly integrated HMI cockpit systems that include electronic devices, software, and packaging by combining software development technology and product-design and planning capabilities.
  3. As the result of 1. And 2.above, create, propose, and increase sales through growing new businesses based on highly functional systems products as an in-vehicle HMI systems integrator.



-Alps Electric Co., Ltd. (Alps Electric) announced that it has signed a share purchase agreement with Greina Technologies, Inc. (Greina Technologies), a U.S.-based startup that has high-accuracy positioning technology. Alps Electric will purchase 100% of the outstanding shares of Greina Technologies and turn it into a wholly-owned subsidiary. Alps Electric intends to develop advanced sensing technology for automotive applications by combining Alps Electric's compact, high-performance wireless communication module technology with high-accuracy positioning technology based on original algorithms developed by Greina Technologies. (From an article in the Nikkan Jidosha Shimbun on May 28, 2018)

Outlook for FY ending Mar. 31, 2020

(in millions of JPY)
  FY ending Mar. 31, 2020
FY ending Mar. 31, 2019
Rate of Change
Sales 868,500 851,332 2.0
-Electronic Components 458,000 468,605 (2.3)
-Automotive Infotainment 322,500 303,593 6.2
Operating income 50,000 49,641 0.7
Ordinary income 47,000 43,605 7.8
Profit for the year attributable to owners of the parent  31,500 22,114 42.4

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

R&D Expenditures

(in millions JPY)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 32,886 29,799 32,279
-Electronic components 18,630 19,539 16,780
-Automotive Infotainment 14,196 10,227 15,449


R&D Activities

Electronic Components - Automotive market

<In-vehicle modules>

  • Develop products by applying HMI (Human Machine Interface) technology and sensing technology
  • Develop compact, electronic shifters, Haptic, touchpads, and electrostatic steering wheel switches to enhance the operability of air conditioners and audio equipment
  • To enable self-self-driving, develop ultra-short-distance millihertz radar to detect vehicles, pedestrians, and objects ahead and prevent collisions.

<In-vehicle devices>

  • Launch commercial production and increase sales of the V2X (Vehicle to X) module.
  • Develop output devices that not only monitor and capture the cabin-interior condition but also excel in comfort and ease of operability to provide a pleasant ride
  • Develop various kinds of sensors to meet the needs of electrification.

Product Development

Millimeter-wave Radar
-Alps Alpine Co., Ltd. will make a full-scale entry into the millimeter-wave radar market. Although it has supplied custom-made products to some customers, the company will develop general-purpose millimeter-wave radar systems that operate in the 79 GHz band (77 to 81 GHz) to encourage the use of its products. Alps Alpine has already started sample shipments to OEMs in and outside Japan, with an aim to start mass production around 2022. The newly-developed general-purpose radar systems comprise two types: a short range system for detecting a distance of about 10 meters and an angular range of 90 degrees each horizontally and vertically and a medium-to-long range system for detecting a distance of about 140 or 220 meters. The short range system is installed inside bumpers and is designed to be used for automated parking and other purposes. Each vehicle is expected to incorporate 10 to 12 system units. A person in charge of development commented, "The product is unit-priced at around several thousand yen and is competitively priced compared to rival products." (From an article in the Nikkan Jidosha Shimbun on January 23, 2019)

Lenses for Optical Communications
-Alps Electric announced that it will be exhibiting at the China International Optoelectronic Exposition (CIOE) in Shenzhen, Guangdong, China, to introduce its latest technologies in lenses for optical communications and the products. The small aspherical glass lens, introduced as a solution for data centers, achieves high efficiency in a light coupling and therefore contributes to the speeding up of data communications and the low-loss of optical transport network. And its compact space-saving design helps reduce the size of data center devices. In addition, the company will showcase its lens products for heads-up displays (HUDs) and LIDAR systems that are used in self-driving cars. (From a press release on August 29, 2018)

In-vehicle DC-to-DC Converter
-Alps Electric Co., Ltd. (Alps Electric) is aiming to achieve practical utilization of a compact, high-efficiency in-vehicle DC-to-DC converter that reduces 48 volts to 12 volts for 48-volt mild hybrid vehicles (HVs). The converter will incorporate magnetic materials with different low-loss characteristics to make circuits smaller and improve efficiency. The converter can maintain high conversion efficiency even under a large power current. This will contribute to downsizing of the converter body. The in-vehicle version is under development, and Alps Electric is promoting use of it to Tier 1 suppliers. European OEMs are expected to accelerate the adoption of 48-volt mild HVs to meet tighter fuel efficiency regulations. Alps Electric will commercialize the new DC-to-DC converter in an effort to attract demand from customers. (From an article in the Nikkan Jidosha Shimbun on April 24, 2018)


Recent Development outside Japan

-On September 5 Alps Electric Co., Ltd. (Alps Electric) announced that it started commercial production of its newly developed RD1030211 brake pedal position sensor at its Dalian plant in China. The sensor enables output power to both regenerative brakes and brake lamps simultaneously, simplifying the on/off mechanism of the switch used for the sensor. The new sensor enhances design flexibility, cuts costs, and reduces weight. The sensor also electronically calibrates the position aberration when the brake pedal is mounted. This eliminates the need for position adjustment and saves labor in the production process. It employs the conventional analog type position detection system. (From an article in the Nikkan Jidosha Shimbun on September 7, 2018)



-Alps Electric announced that it has received the Jaguar Land Rover Supplier Excellence Award for 2018. The Award recognizes extraordinary contribution to Jaguar Land Rover’s business over the last year. Fifteen suppliers from around the world were recognized with these awards. Alps Electric is honored to receive a Silver Award in respect of producing innovative products such as the capacitive touch pad and the Haptic Commander for a wide range of Jaguar Land Rover vehicles. (From a press release on June 11, 2018)

Capital Expenditure

(in millions JPY)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 52,928 76,154 47,657
Electronic components 33,210 61,235 37,063
Automotive Infotainment 13,597 8,611 7,978

Electronic components
-In the fiscal year ending in March 2019, the Company invested in the development of and manufacturing facilities for actuators for smartphone cameras, tact switches, sensors and other components.

Automotive Infotainment
-In the fiscal year ending in March 2019, the Company made capital investments in machinery and equipment to update and rationalize production facilities and in the dies for new products.
-Outside Japan, the Company invested in the production facilities of its European production base Alpine Electronics Manufacturing of Europe, Ltd. and other locations.

Planned Capital Investment

(As of Mar. 31, 2019)
Division Investment details Planned investment
(million yen)
Start of construction Planned completion Details

Alps Alpine Co., Ltd.

Furukawa Plant (Osaki, Miyagi)and others

Electronic components Facilities and equipment to manufacture components 15,084 Apr. 2019 Mar. 2020 New products, production increase,  rationalization, etc. 

Onahama and Taira Plants (Iwaki, Fukushima)

Facilities and equipment to manufacture components 488 Apr. 2019 Mar. 2020 New products, etc.

Head office(Ota, Tokyo)

System-related facilities 562 Apr. 2019 Mar. 2020 Rationalization, etc.
Alpine Electronics, Inc. Iwaki Plant (Iwaki, Fukushima) Automotive Infotainment Facilities for manufacturing, R&D and others 6,150 Apr. 2019 Mar. 2020 New products, production increase,  rationalization, etc. 
WUXI ALPS ELECTRONICS CO., LTD. Head office plant (Wixi, Jiangsu Province, China) Electronic components Facilities and equipment to manufacture components 2,646 Apr. 2019 Mar. 2020 New products, production increase,  rationalization, etc. 


Investment in Japan

-On November 1 Alps Electric Co., Ltd. constructed a new plant at a site adjacent to its Furukawa Second Plant in Miyagi Prefecture. The company invested JPY 10 billion in this project excluding the installation of production facilities. With the new plant, it will increase its production capacity for in-vehicle modules, camera-use actuators, and switches, demand for which is growing along with vehicle electrification. The new plant will be positioned as a mother base for its electronic parts plants. The new plant has three floors above the ground at the site, which has an area of 48,000 square meters. It has a total floor area of 37,000 square meters. Alps Electric will employ 1,000 people at the new plant. The company will introduce IoT technologies and artificial intelligence at the new plant to visualize production processes, as well as improve quality and reduce costs. The new plant will halve greenhouse gas emissions using renewable energy compared to the Furukawa Plant. (From an article in the Nikkan Jidosha Shimbun on November 5, 2018)