Overview of Sales and Profits

Historial Business Results(Consolidated)

Net Sales

Net Sales

Operating Income

Operating Income

Profit attributable to owners of parent

Net Income
   
  2013.3 Period
(Results)
2014.3 Period
(Results)
2015.3 16Period
(Results)
2016.3 Period
(Results)
2017.3 Period
(Plan)
billion yen year on year change (%) billion yen year on year change (%) billion yen year on year change (%) billion yen year on year change (%) billion yen year on year change (%)
Net Sales 222.3 (9.6) 285.8 (28.6) 294.5 (3.0) 273.0 (△7.3) 245.0 (△10.3)
Operating Income 2.3 (△59.2) 9.8 (325.8) 11.5 (1.74) 5.4 (△52.8) 4.6 (△15.4)
Ordinary Income 4.2 (△34.2) 11.7 (174.1) 15.0 (2.75) 6.1 (△58.9) 5.9 (△4.4)
Profit attributable to owners of parent 1.7 (△61.8) 9.2 (428.1) 12.7 (3.77) 10.6 (△15.8) △6.5 (△39.2)
Return on Assets
(ROA)
1.0 5.1 6.35.13.2
Dividend per Share
(Interim dividends)
¥20
(¥10)
¥25 
(¥10)
¥30 
(¥10)
¥30 
(¥15)
¥30 (Plan)
(¥15)
Exchange rate $1=¥83
€1=¥107
$1=¥100
€1=¥134
$1=¥110
€1=¥139
$1=¥120
€1=¥133
$1=¥110
€1=¥117

Basic policies on profits distribution and dividends

In the global economy during the first nine months ended December 31, 2016, US domestic demand was firm,and in Europe, economic activity continued to recover in spite of patchy performance from country to country.
Meanwhile, concerns intensified about a possible economic downturn in emerging countries, such as China, as well as resource producing countries, due to slowing of growth in those countries. In the Japanese economy, there were signs of a moderate recovery; however a mood of uncertainty surrounded the future outlook due to increased uncertainty in overseas economies, such as fluctuations in exchange rates, caused by the issues arising from the U.K.’s leaving from the EU and the effects of the United States presidential elections, as well as risks in European financial and capital markets.
In the car electronics industry, collaboration between the in-car IT field which centers on infotainment systems, and new fields such as the use of electronics in cars, vehicle automation and artificial intelligence (AI) is expanding and it leads competition to be intensified regardless of business area or type.
Under these circumstances, the Alpine Group (the “Group”) regards this fiscal year as a year to implement reforms in order to build the foundation for the growth described in VISION2020, its corporate vision targeting the 2020 fiscal year. To this end, it is working to enhance its corporate standing through means such as organizational reform of the R&D division, improving efficiency of R&D investment, and promoting to lower cost prices.
Furthermore, on the growth front, Alpine Electronics, Inc. (the “Company”) exhibited at motor shows in China, which is the world’s largest automobile market where it presented its solutions tailored to specific vehicle models, revolving around navigation systems and premium sound systems. In addition, the Company aimed at expansion of sales by rolling out high value added new models, in the domestic and overseas aftermarket. In addition, with the EV (Electric Vehicle) market rapidly expanding in China, the Company implemented a capital increase in an entity accounted for using equity method, which has been focusing on EV-related business such as development of next-generation battery control systems, in working to strengthen its development functions.
Moreover, the Company has made a strategic move to the future growth, such as by commencing development of next-generation in-car systems in collaboration with IBM Japan, Ltd., in preparation for self-driving cars becoming common place, and by entering a strategic business alliance with TOSHIBA CORPORATION, in order to create new businesses that utilize compact unmanned aerial vehicles, drones, and apply the position control technology fostered through the development of car navigation systems. In addition, the Company has worked to strengthen its business platforms by promoting efforts for reorganization of its production system, in preparation for business integration of domestic manufacturing subsidiaries in April 2017.
Nevertheless net sales declined due to worsening of external conditions, such as abrupt short-term fluctuations in exchange rates. Meanwhile, operating income increased slightly, mainly due to curtailed noncurrent expenses.
As a result, during the first nine months ended December 31, 2016, consolidated net sales decreased 11.7% compared with the corresponding period of the previous fiscal year, to ¥181.3 billion. Operating income increased 7.2% to ¥4.6 billion, and ordinary income increased 45.3% to ¥7.0 billion, due to an increase in share of profit of entities accounted for using equity method. Profit attributable to owners of parent decreased 28.6% to ¥7.9 billion, owing to a decrease in gain on sales of shares of subsidiaries and associates that was recorded under extraordinary income.
For consolidated earnings forecasts, please refer to the news release “Notice of Revisions to Consolidated Earnings Forecasts and Dividend Forecasts” announced today (January 27, 2017).
The exchange rates assumed during the fourth quarter ending March 31, 2017 are US$1 = ¥110 and €1 =¥117.
<Consolidated full-year earnings forecasts for the fiscal year ending March 31, 2017>
Net sales ¥245.0 billion (down 10.3% year on year),Operating income ¥4.6 billion (down 15.4% year on year),Ordinary income ¥5.9 billion (down 4.4% year on year),Profit attributable to owners of parent ¥6.5 billion (down 39.2% year on year)

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