To our shareholders
I would like to express my deep gratitude to all our shareholders ,for the kindness you have shown us.
Alpine has adopted and is now implementing VISION2020 (total sales of 330 billion yen, and operating profit rate of 5% in FY2020), which is our long-term management plan, with a target year set to 2020. The plan has progressed steadily and the achievement of its goals have come into view. In the auto industry, dramatic environmental changes that were not considered when we drew up VISION2020 have been occurring one after another. As a strategy to realize VISION2020 while responding appropriately to these changes, in 2017, we enacted and began implementing the Fourteenth Mid-term Management Plan. Beginning last year, Alpine carried out structural reform including reorganization of its domestic subsidiary companies. Funds obtained through the increased efficiency of our business management are invested looking ahead to years after 2020 under the Fourteenth Mid-term Management Plan.
When we look ahead to the future of the automobile, we see major trends that Alpine must grasp: automatic driving, connected, EV, and sharing. Aiming at the new markets which will appear in the future, companies in our industry and newly participating companies are carrying out bold M&A, violently transforming the business environment. Alpine will speed up its business activities to respond to change by cooperating with its parent company, Alps Electric, and aggressively expanding alliances with various partners inside and outside of Japan. Alpine will also expand its business by concentrating on areas where it can display its own strengths, such as ADAS (Advanced Driver-Assistance Systems).
In order to overcome the change of the auto industry to continue its growth, Alpine faces a demand to further refine its own strengths. Under the Fourteenth Mid-term Management Plan, we will further advance our core technology HMI (Human Machine Interface) that we constructed through our activities in the car audio and car navigation businesses. Even as automobiles are being made more intelligent, the needs for safety and ease of use remain unchanged. We will pursue AI (Artificial Intelligence), deep learning, and other state-of-the-art technologies, viewing “HMI appealing to the five senses” which has been realized in the form of user-friendly machines and systems as unique values.
And we will work to strengthen our business model, with its dual poles—OEM and the after-sales market—which has been a characteristic of Alpine’s business. The synergistic effects gained from operating our business in the cycles of the two markets—the OEM market that operates at 3-year spans and the after-sales market with its 1-year span—have greatly increased value for our customers in both markets. Based on the success of advanced measures worked out as the Alpine brand for the after-sales market, we have established our position as a global premium brand. But people’s life styles and values are changing, and our goals now include advancing the Alpine Brand to adapt to these changes. In Japan, efforts to communicate new values to the Alpine Brand have already proven successful, as group companies handling domestic the market have achieved new sales records thanks to model-specific products focused on individual needs.
Alpine is now tackling a variety of challenges looking ahead to the successor to VISION2020 by promoting business with confirmed orders. Alpine is searching for new value creation by, in automobile related fields, studying custom car sales or the car sharing business, for example, as well as outside the automobile field, by studying the drone business, which applies navigation control technologies (GPS, gyro functions, map information linking, etc.). We will continue to aim for sustained corporate growth while aspiring to ideas and actions that are “outside the box.”
Alpine will celebrate its 50th anniversary this year. We are deeply grateful to all our shareholders who have continued to support us. Keeping in mind our gratitude to all of you, we will continue to strive to create greater future value. I request all our shareholders to honor us with your support and encouragement, as you have given us in the past.