Results Briefing FY2013 2Q - PDF Free Download

Contents FY2013 2Q Consolidated Financial Results P. 2-7 FY2013 Consolidated Financial Results Forecast P. 8-11 Progress of Priority Areas of the 7th Mid-term Business Plan P. 12-18 1

1. Summary of Financial Results [Consolidated] [Unit: billion] NB: Here and subsequently amounts have been rounded down to the nearest 100 million. NB: Breakdown of sales shows composition, breakdown of operating income shows operating margin, and differences show rates of change. 2

2. Net Sales and Operating Income: Quarterly Change [Consolidated] [Unit: billion] Change in Quarterly Net Sales Change in Quarterly Operating Income 3

3. Change in Breakdown of Sales by Business Segment 1. Electronic Components Segment Net sales Operating income [Unit: billion] Net sales (the first half) 162.1 billion (up 22.7% year on year) Automotive market: 76.7 billion (up 12.1%) Focused on development and rollout of original products. Sales of products such as sensors, instrument panels, door modules and communications modules posted a solid growth. Consumer market: 85.3 billion (up 33.9%) Sales of component products such as camera actuators, switches and touch panels for smartphones expanded. Operating income (the first half) 5.0 billion (up 5.8 billion year on year) Operating margin: 3.1% Income improved due to an increase in sales of such products as camera actuators and switches for smartphones. 4

3. Change in Breakdown of Sales by Business Segment 2. Automotive Infotainment Segment Net sales [Unit: billion] Net sales (the first half) 136.1 billion (up 32.3% year on year) Sales of new cars in the North American and Chinese markets were strong, leading to sales growth in genuine products for automakers. Operating income Operating income (the first half) 3.7 billion (up 225.1% year on year) Operating margin: 2.8% The sales composition of commercial products for markets and genuine products for automakers changed. 5

4. Amount of Effect from Exchange Rates [Unit: billion/month/per 1] USD EUR Net sales 0.29 0.04 Consolidated Operating income 0.06 0.01 Electronic components segment Net sales Operating income 0.19 0.05 0.02 0.01 NB: The above amounts for the USD effect include other currencies linked to the USD (eg.: HKD, CNY). 6

5. Summary of Balance Sheet [Consolidated] [Unit: billion] Inventories 77.7 billion (up 3.3 billion year on year) Electronic components segment: up 1.6 billion (includes 1.4 billion in exchange rate effect) Automotive infotainment segment: up 1.6 billion (includes 1.5 billion in exchange rate effect) Tangible fixed assets 132.4 billion (up 3.2 billion year on year) Electronic components segment: up 2.2 billion (includes 1.9 billion in exchange rate effect) Automotive infotainment segment: up 1.5 billion (includes 0.7 billion in exchange rate effect) Interest-bearing debt 116.7 billion (down 7.7 billion year on year) Electronic components segment: repayment of borrowings under commitment line Automotive infotainment segment: repayment of short-term loans payable 7

FY2013 Consolidated Financial Results Forecast

1. FY2013 Financial Results Forecast Net Sales [Consolidated] [Unit: billion] Difference vs. FY2013 1H % % % % % % 546.4 100.0% 328.2 100.0% 319.7 100.0% 648.0 100.0% 101.6 18.6% -8.5-2.6% Electronic Components 268.0 49.1% 162.1 49.4% 157.8 49.4% 320.0 49.4% 52.0 19.4% -4.3-2.7% Automotive market 140.0 25.6% 76.7 23.4% 92.2 28.9% 169.0 26.1% 29.0 20.7% 15.5 20.2% Consumer market 128.0 23.5% 85.3 26.0% 65.6 20.5% 151.0 23.3% 23.0 18.0% -19.7-23.1% Automotive Infotainment Logistics Others Operating Income 219.8 40.2% 136.1 41.5% 130.8 40.9% 267.0 41.2% 47.2 21.5% -5.3-3.9% 48.5 8.9% 25.1 7.6% 25.8 8.1% 51.0 7.9% 2.5 5.2% 0.7 2.8% 9.9 1.8% 4.8 1.5% 5.1 1.6% 10.0 1.5% 0.1 1.0% 0.3 6.3% 6.8 1.3% 11.1 3.4% 12.8 4.0% 24.0 3.7% 17.2 250.3% 1.7 15.3% Electronic Components 0.2 0.1% 5.0 3.1% 7.4 4.7% 12.5 3.9% 12.3 2.4 48.0% Automotive Infotainment 2.3 1.1% 3.7 2.8% 3.2 2.4% 7.0 2.6% 4.7 204.3% -0.5-13.5% Logistics 3.5 7.4% 1.8 7.4% 1.9 7.4% 3.7 7.3% 0.2 5.7% 0.1 5.6% Others 0.4 4.2% 0.1 3.7% 0.2 3.9% 0.4 4.0% 0.0 0.1 10.0% Eliminations 0.2 0.2 0.0% 0.1 0.0% 0.4 0.0% 0.2 0.0% -0.1-5.0% Ordinary Income Net Income FY2012 Results 1H Results FY2013 2H Forecast FY2013 Forecast Difference vs. FY2012 7.6 1.4% 10.7 3.3% 11.7 3.7% 22.5 3.5% 14.9 193.8% 1.0 9.3% -7.0-1.3% 5.3 1.6% 5.6 1.8% 11.0 1.7% 18.0 0.3 5.7% USD/JPY 83.10 98.85 95.00 96.92 EUR/JPY 107.14 130.00 125.00 127.50 NB: Here and subsequently amounts have been rounded down to the nearest 100 million. NB: Breakdown of sales shows composition, breakdown of operating income shows operating margin, and differences show rates of change. 9

2. Net Sales and Operating Income Forecasts by Business 1. Electronic Components Segment Net sales Operating income [Unit: billion] Net sales 320.0 billion (up 19.4% year on year) Automotive market: 169.0 billion (up 20.7%) By focusing on development and rollout of original products, sales of products such as sensors, instrument panels, door modules and communications modules are expected to expand. Consumer market: 151.0 billion (up 18.0%) Sales of component products such as camera actuators, switches and touch panels for smartphones are expected to expand. Operating income 12.5 billion (up 12.3 billion year on year) Operating margin: 3.9% Income will be improved due to an increase in sales of such products as camera actuators and switches for smartphones. 10

2. Net Sales and Operating Income Forecasts by Business 2. Automotive Infotainment Segment Net sales [Unit: billion] Net sales 267.0 billion (up 21.5% year on year) Sales of new cars in the overseas markets will be strong, leading to sales growth in genuine products for automakers. Operating income Operating income 7.0 billion (up 204.3% year on year) Operating margin: 2.6% Sales of genuine products for automakers to total sales will increase. 11

Progress of the 7th Mid-Term Business Plan

1. Progress of Priority Areas of the 7th Mid-Term Business Plan [Electronic Components Segment] Targets Strategies 1 2 3 4 Achieve 200 billion in sales to the automotive market Achieve 100 billion in sales for smartphones Establish business in new markets Strengthen core technology and product capabilities 1. Promote customer-targeted marketing strategies 2. Expand market share of existing products 3. Create new products 1. Expand sales to leading smartphone manufacturers 2. Boost promotion of sales to Chinese and Taiwanese manufacturers 1. Establish environment / energy business 2. Accelerate healthcare business 1. Deepen the human-machine interface 2. Increase variety of sensors 3. Expand businesses based on connectivity 5 Rationalization of fixed costs Global personnel reduction of 3,000 - Mar. 31, 2013: reduction of 1,000 personnel completed - Sep. 30, 2013: reduction of 1,000 personnel planned - Mar. 31, 2014: reduction of 1,000 personnel planned 13

2. Achieve 200 Billion in Sales to the Automotive Market Ensure Net Sales of 200 Billion Toward Further Expansion Development of New Products Next-Generation Product Proposals Head-Up Display Electronic Shifter Electronic Parking Brake W-LAN + Bluetooth Module Bluetooth SMART Module Steering Angle Sensor Global Response Capabilities (Japan/Europe/the U.S. + Emerging Countries) Alps Electric Korea R&D Center construction completed R&D relating to automotive and consumer equipment Alcom Electronicos De Mexico Construct new building Respond to expansion in North American automotive market Office opened in Jakarta, Indonesia Enhance support for 2-wheel and 4-wheel vehicle manufacturers Alps Electric (India) Local production of in-car products planned CEATEC JAPAN 2013 Proposal of next-generation input device Epistemic Cockpit for automotive use <Eyeline detection/anticipation of next move> Detect the driver's eyeline and anticipate the driver's next move to help operate touch screen and gesture input <Connectivity/Contactless power supply> Proposal of easier and smoother connection between car and portable devices, enabling pairing with smartphones by NFC and wireless power supply, etc. <Compact shifter> Proposal of new car interior design made possible with development of smaller shifter 14

2. Achieve 200 Billion in Sales to the Automotive Market Multi Satellite cloud V2V 3 to 4G Line Outside-Car Communication Devices Business LTE(Long Term Evolution) V2X(802.11p) GPS/Glonass receiver Remote Tuner(TU SDR) Automotive integrated antenna Whitespace Radio(802.11af) V2I Equipment for consumers and industries Tuner, M2M(Sub Giga) Automotive SoC Reference Design Broaden a market and have widened customers Inside-Car Communication Devices Business BT/BTLE/WLAN/NFC + Smartphone Link (Mirror Link/Mirracast) Connectivity Box Ethernet AVB module Systems + Evaluation Technology Assets High-frequency wave, EMC lab, antenna design CAE environment BT/WiFi cross connectivity verification system Hands free acoustic evaluation facilities + sound control technology Projected image (TV) and audios (FM/AM) evaluation technology High-frequency wave resin seal and WLCSP high-density mounting technology Software IP Bluetooth/WiFi protocol Smartphone link (Mirrorlink, Miracast, etc.) GPS/GNSS location service LTE, V2X (802.11p) ecall, response to regulation on robbery tracking Linux OS Development into Genivi, QNX 15

3. Achieve 100 Billion in Sales for Smartphones Expand Sales to Leading Smartphone Manufacturers and Boost Promotion of Sales in China Expand Sales to Leading Smartphone Manufacturers Development of actuators for new-type cameras Actuators for next-generation smartphones Development of new-type sensors Develop smart sensors, augment sensor variety Touch panel solutions meeting customer needs Realize thin touch panels through F2/F1 appeal Enhance development of sensors Strengthen partnership with Qualtré, Inc. in the U.S. The commercialization of new products fusing Qualtré's technology and the Company's packaging technology will allow the addition of inertial sensors, such as gyroscopes and acceleration sensors, to the product lineup and provide further impetus for development activities. Business alliance with mcube in the U.S. Developed a 6-axis sensor integrating the Company's geomagnetic sensor and mcube's acceleration sensor. Mass production began in October 2013 to launch sales through mcube. Promotion of Sales to Chinese and Taiwanese Smartphone Manufacturers Adoption by Chinese manufacturers Customer targeted distributors Connectors Switches Adoption by Chinese and Taiwanese manufacturers Reference registration activity Adoption by Taiwanese manufacturers Camera Actuators Sensors Touch Panels 16

4. Establish Business in New Markets Establish Environment / Energy Business Accelerate energy saving business Current sensors Alps Green Devices Co. began in earnest with development of really small, light and high-precision current sensors. Augmenting variety including board mounting type smallest and lightest in the industry and type compatible with large current CEATEC JAPAN 2013 Alps Green Devices developed a current sensor and DC DC converter using Liqualloy Reactors. Won Semi-Grand Prix of CEATEC AWARD in Core Technology Category Business collaboration of the Coil Business ALPS Green Devices Co., Ltd. and Toho Zinc Co., Ltd. went into partnership. 1. Joint development of Liqualloy -applied products (core, inductor and reactors) 2. Reciprocal sales of Takron Coil and Liqualloy products 17

5. Rationalization of Fixed Costs Personnel Reduction (compared to December 2012) As of September 30, 2013 Considerable impact of global personnel reduction of 3,000 achieved 18

The business results forecasts and future predictions included in these materials are based on the judgment of the Company at the time of preparation of the materials, and are inherently subject to risks and uncertainties. As a result, actual business results and outcomes may differ significantly due to a variety of factors. 19

Consolidated Financilal Results FY2013 2Q (April 2013 - September 2013) Basic Data October 2013 Alps Electric Co., Ltd.

1.Outline (Unit:100 million Yen) FY2012 FY2013 1Q 2Q 3Q 4Q Total 1Q 2Q 2Q Half Total Net Sales 1,331 1,312 1,367 1,452 5,464 1,557 1,724 3,282 6,480 Domestic 343 315 309 294 1,262 287 332 619 - Overseas 988 997 1,058 1,157 4,202 1,270 1,392 2,662 - Operating Income 4 23 25 14 68 31 79 111 240 Ordinary Income 3 20 34 25 76 29 78 107 225 Net Income 24 2 12 31 70 2 55 53 110 2.Net Sales (by segments) (Unit:100 million Yen) FY2012 FY2013 1Q 2Q 3Q 4Q Total 1Q 2Q 2Q Half Total Electronic Components 640 681 684 674 2,680 736 884 1,621 3,200 Automotive market 355 329 328 387 1,400 400 366 767 1,690 Consumer market 284 352 356 287 1,280 335 518 853 1,510 Automotive Infotainment 545 483 532 637 2,198 673 687 1,361 2,670 Logistics 121 122 125 116 485 123 128 251 510 Others 24 25 25 24 99 24 24 48 100 Total 1,331 1,312 1,367 1,452 5,464 1,557 1,724 3,282 6,480 3.Operating Income (Unit:100 million Yen) FY2012 FY2013 1Q 2Q 3Q 4Q Total 1Q 2Q 2Q Half Total Electronic Components 23 15 7 3 2 6 44 50 125 Automotive Infotainment 13 2 5 5 23 14 23 37 70 Logistics 11 7 11 5 35 9 8 18 37 Others 1 1 2 1 4 0 1 1 4 Eliminations 1 1 1 0 2 0 1 2 4 Total 4 23 25 14 68 31 79 111 240 4.Capital Expenditures (Unit:100 million Yen) FY2012 FY2013 1Q 2Q 3Q 4Q Total 1Q 2Q 2Q Half Total Electronic Components 78 67 50 42 238 41 39 81 169 Automotive Infotainment 16 18 13 17 67 15 22 38 75 Logistics 3 5 4 2 16 3 4 7 11 Others 2 1 1 1 6 1 1 2 10 Eliminations 1 0 0 7 9 1 0 1 1 Total 100 92 69 55 318 59 68 128 265 (Ref.) Estimate booked on the basis of order forecast including lease. 5.Depreciation Expenses (Unit:100 million Yen) FY2012 FY2013 1Q 2Q 3Q 4Q Total 1Q 2Q 2Q Half Total Electronic Components 30 32 35 30 130 38 39 78 158 Automotive Infotainment 14 14 15 16 61 14 14 29 54 Logistics 4 4 4 5 19 4 4 9 19 Others 1 1 1 1 5 1 1 2 10 Eliminations 0 0 0 0 0 0 0 0 0 Total 50 53 57 53 215 58 60 118 242 6.R & D Expenses (Unit:100 million Yen) FY2012 FY2013 1Q 2Q 3Q 4Q Total 1Q 2Q 2Q Half Total Electronic Components 33 27 27 28 117 33 34 67 134 Automotive Infotainment 40 45 39 43 168 44 48 93 188 Logistics - - - - - - - - - Others 0 0 0 0 0 0 0 0 0 Total 73 73 67 72 286 77 83 160 322 7.Inventories (Unit:100 million Yen) 2012/6 2012/9 2012/12 2013/3 2013/6 2012/9 Electronic Components 419 407 437 439 500 456 Automotive Infotainment 288 326 346 293 300 309 Logistics 12 10 8 10 10 11 Others 0 0 1 0 1 0 Eliminations 0 0 1 0 0 0 Total 720 745 792 743 811 777 8.Employees (Unit:Person) 2012/6 2012/9 2012/12 2013/3 2013/6 2012/9 Electronic Components 20,059 20,060 19,629 19,600 19,797 19,756 Automotive Infotainment 11,194 11,241 11,141 11,107 11,368 11,400 Logistics 4,600 4,626 4,714 4,683 4,721 4,751 Others 809 808 812 809 824 819 Total 36,662 36,735 36,296 36,199 36,710 36,726 (Non Consolidated) 5,615 5,548 5,533 5,471 5,567 5,515 (Ref.) All figures exclude temporary employees.