204FY 2 nd QTR Financial i Result Overview Nov. 5 th, 204 Managing Director, Administration Seishi Kai
-- New Vehicle Sales in Main Market 2 Alpine Topics 3 Financial Result Overview
New Vehicle Sales in Each Market -2- Point EU : Increased 3-straight-month th YoY. Y Main 5 countries are in good condition. 2 China:Still over the last year but little slow down. MPV/SUV are good sales. 3 Japan:Due to the increase of sales tax, the st half sales is under 2.5mil units for the first time in two years. 4 USA : In good condition to keep the pace of.65mil units for this year. EU Apr-Sep 6,2 YoY +4.% China Apr-Sep,079 YoY +5.9% Japan Apr-Sep 2,474 YoY 2.8% USA Apr-Sep 8,688 YoY +7.3% 700 (Thousand unit) 2500 850 (Thousand unit) (Thousand unit) (Thousand unit) 800 500 2250 750 600 FY4 300 2000 FY4 650 FY4 400 FY4 00 FY3 550 750 200 900 700 FY3 500 450 350 FY3 000 FY3 500 4 5 6 7 8 9 0 2 2 3 250 4 5 6 7 8 9 0 2 2 3 250 4 5 6 7 8 9 0 2 2 3 800 4 5 6 7 8 9 0 2 2 3
New Vehicle Sales in Each Market 2-3- Point Brazil : Decreased 7-straight-month YoY. 2 Russia: Little recovered in Sep due to the subsidy start for new vehicle purchasing. 3 India : After change of government, increased 5-straight-months YoY. 4 Thai : Still sluggish, below 70 thousands units for 3-straight-month. Brazil Russia India Apr-Sep,74 YoY 2.% Apr-Sep,77 YoY 7.7% Apr-Sep,564 YoY +2.4% Thai Apr-Sep 424 YoY 3.7% 400 350 300 (Thousand unit) (Thousand unit) (Thousand unit) (Thousand unit) FY3 250 FY3 400 350 200 300 FY4 50 250 FY4 200 300 FY3 200 50 FY4 250 FY3 00 FY4 50 4 5 6 7 8 9 0 2 2 3 00 4 5 6 7 8 9 0 2 2 3 200 4 5 6 7 8 9 0 2 2 3 50 4 5 6 7 8 9 0 2 2 3
Major Customers : New Vehicle Sales (Apr Sep) -4- Major Customers:Good Result in Main Markets 00% EU/US/China market Total for Major Customers 0% Japanese 0% China Market US Market EU Market 4% 00% 00% American 0% 99% 00% 07% 02% 2 3 European % 9% % 00% 05% 96% 06% 99% FY203 FY204 FY203 FY204 FY203 FY204 FY203 FY204
Alpine Topics Japan Aftermarket Highly Acclaimed BIG X Premium Vehicle Specific Business Model -5- Oct. 204 An authoritative customer satisfaction survey # 3 years in a row 3FY 2 nd Half 4FY st Half An authoritative customer satisfaction survey # Grand Prix Award from Nikkan Jidousya (Best Product in a year) 2
-6- Alpine Topics 2 Overseas Aftermarket Launched Car by Car Product in Overseas Aftermarket USA Europe Started for SUV Pickup Truck ２ Started for Mercedes M-Class Awarded from EISA EISA Award European IN-CAR Premium Upgrade 204-205 <Acclaimed Points> Products are available through car dealers and d l d also l in i a major j used d car sales chain. ①Total design fit into interior ②60% Bigger Screen 8 than OEM ③Touch Panel HMI EISA Awards are chosen annually by Expert Groups representing nearly 50 prominent Photography, Hi-Fi, Home Theatre Audio, Home Theatre Display & Video, In-Car Electronics and Mobile Devices magazines from up to 20 European countries.
Alpine Topics 3 Strengthen Smartphone Related Business -7- Additional Value Creation Link with Smartphone and Infotainment System Two Majors Announced Automotive Application Apple CarPlay Android Auto Alpine supports both applications Launched Product for Apple CarPlay Support safety operation while driving for Phone, Music, Messaging Thinner Chassis Easy to install and more applicable vehicles Bigger screen (7 ) than other products Support Operation through Siri Support iphone6 2 Safer & Easier Smartphone Operation while Driving
Alpine Topics 3 Strengthen Smartphone Related Business2 Headphone is now on Sale through Apple Stores in North America First Technology Implemented 2 First Technology Link with iphone app. The original app scans, analyzes, and organizes the listener s music library. At playback, it presents randomized song base on listener s mood. Pulsing Bass Transducer Implemented original technology so that the sound can be felt with body through the transducer New Patent: item Patent-pending :3 items From Listen to Feel, Providing New Fun for Music Creates New Value for Further Enjoyable Sound Space in Vehicle -8-
Alpine Topics 4 Co-Developemnt with Fujitsu TEN -9- Strengthen Competitiveness through Co-Development Support Various and Changing Needs Expanding Roles on Infotainment system Link with Smartphone and mobile devices Improve Development Efficiency Common development theme as Android based platform is co-developed to increase development efficiency and competitiveness for other areas. Left : Fujitsu TEN Chairman Mr. Shigematsu Right : Alpine CEO Mr. Usami New Office Osaki Tokyo New Office Open in Osaki Tokyo 2 Speedy and Efficient Development for Next Gen. Infotainment System
Alpine Topics 5 Alps Alpine Synergy Utilize Each Strength th and Alps Alpine Synergy, Grow Further by Developing Attractive Products Alps Alpine Tech. Exhibition Alps Show 204 New Tech. Proposal to Major Customers Alpine Exhibits as a part of Alps -0- Next Gen. Cockpit, Head-Up Display Electric Shifter and so on. Three Concept Zones Appeals Alpine Brand : Corporate Profile, Japan Aftermarket, New Tech. such as a Cloud Service.
Alpine Topics 6 Mexico Factory Expanded Mexico Factory Expanded for Growing Market of New Vehicle Sales in North America -- Operation Started in July 204 Total area is increased by 60% (4,000m2). Important Production Site for North America Market Utilize the merits of production in Mexico and become a factory to support Latin America Market in the future.
Consolidated Financial Result Overview 2 203FY st Half Ended Sep 203 204FY st Half Ended Sep 204 % vs. 3Y 203FY Total Ended Mar 203 204FY Total (Forecast) Ending Mar 205 % vs. 3FY -2- Net Sales 37.9bln 4.6bln +3% 285.8bln 284.0bln % Operating Income 3.7bln 4.5bln +20% 9.8bln 9.5bln 3% Ordinary Income 4.4bln 5.7bln +29%.7bln.0bln 6% Net Income 3.0bln 4.2bln +40% 9.2bln 8% 8.5bln E.P.S. 43.2 60.69 32.27 22.62 Dividend 0 0 (full year forecast) 25 25 R.O.E. 2.7% 3.3% 7.9% 6.6% R.O.A..7% 2.2% 5.% 4.3%
Quarterly Result -3- Unit : billion Audio 72.4 75.4 69.5 Information & Communication 72.0 Net Sales Operating Income 24% 22% 25% 22% 76% 78% 75% 78% 4.0 2.0 2.0 2.5 2 203FY 3Q (Oct-Dec) 203FY 4Q (Jan-Mar) 204FY Q (Apr-Jun) 204FY 2Q (Jul-Sep)
Net Sales per Segment -4- Unit : billion.8bln 2 250 200 3.7bln 284.0 285.8 5.6 69.4 (2%) (24%) 67.77 (24%) 6.6 (2%) Others Audio 50 00 37.9 34.8 (25%) 2.6 (2%) 4.6 33. 3.5 (23%) (3%) 20.8 209.7 (74%) (74%) Information & Communication 50 00.5 (73%) 05.0 (74%) 0 203FY st Half 99/$ 30/ 204FY st Half 03/$ 39/ 203FY Total 00/$ 34/ 204FY Total (Forecast) 04/$ 37/ 204 2 nd Half Rate(Forecast) 05/$ 35/
Unit : billion 250 200 Net Sales per Aftermarket and OEM +3.7bln 285.8.8bln 284.0 5.6 (2%) 46. (6%) 44.7 2 6.6 (2%) Others -5- VS 203FY st Half +8.0% (6%) Aftermarket 3.0% 3 50 00 37.9 22.3 (6%) 2.6 (2%) 4.6 22.5 3.5 (6%) (2%) 234. (82%) 232.7 (82%) OEM 0.% 50 3.0 (82%) 5.8 (82%) 0 203FY st Half 99/$ 30/ 204FY st Half 03/$ 39/ 203FY Total 00/$ 34/ 204 2 204FY Half Rate(Forecast) Total (Forecast) 05/$ 04/$ 35/ 37/
Net Sales per Area -6- Unit : billion 2 20.8 0.9 203FY 204FY Audio Information & Communication 04.6 00 92.8 75 50 44.7 5.9 58. 54. 43. 42.4 25 0 29. 22.2 26. 2. 4.0 3.4 US EU Asia & Others JPN US EU Asia & Others JPN ST Half Total (Forecast)
Net Sales/Operating Income (204FY Q vs. 2Q) -7- Unit : billion Plus Factor Negative Factor Net Sales Operating Income 75 50 25 69.5.7 7.4 72.0 5.7 50.4 54.6 7.7 Others Audio Information & Communication 2.0 0.3 2 +0.5bln.3 2. 0..0 0.3 2.5 0 QTR 2QTR 02/$ 40/ 04/$ 38/
Operating Income (vs. 203FY) -8- Unit : billion Plus Factor Negative Factor 0.3bln +0.8bln 3 4 7.2 5.2 3.7 0. 3.33 0.7 0.5.6 2 9.8 0.7 9.5 2.4.3 0.7 0.6 4.5 ST Half Total (Forecast)
Operating Income (vs. as of 4/30) -9- Unit : billion Plus Factor Negative Factor +.5bln 0.9 +bln 0.2 0. 0. 0.6 4.5 8.0 0.4.7 2 0. 0.8 3.6 0.2 9.5 3.5 0.5 ST Half Total (Forecast)
Operating Income (204FY st Half vs. 2 nd Half) -20- Unit : billion +0.5bln Plus Factor Negative Factor 2 4.5 0.5 2.2 0.9 5.0 0. 0.2
Ordinary Income (vs. 203FY) -2- Unit : billion Plus Factor Negative Factor 0.7bln 4.4 0.8 +.3bln 0.4 0. Non-Operating Income Effect of exchange rate Equity q ymethod income Others 5.7.7 0.3 0.4 0 Non-Operating Income Effect of exchange rate Equity method income Others.0 ST Half Total (Forecast)
Net Income (vs. 203FY) -22- Unit : billion Plus Factor Negative Factor 0.7bln +.2bln 9.2 0.7 0.7 0. 0.6 8.5 3.0.2 0.4 0. 0.3 4.2 Extraordinary Profit/Loss & corporate tax &others Compensation received Adjustment Others Extraordinary Profit/Loss & corporate tax &others Compensation received Adjustment Others ST Half Total (Forecast)
203FY Revenue per Segment -23- Unit : billion 2 Q 2Q st Half 2 nd Half Total (Forecast) (Forecast Audio Net Sales Operating Income 7.4 5.6 33. 34.6 67.6 0.7 0.5.2.2 2.4 Information Communication Net Sales Operating Income 52. 2.5 56.3 3. 08.5 5.6 07.8 5.5 26.3. Elimination and/or Corporate.2. 2.4.7 4.0 Ttl Total Net Sales Operating Income 69.5 72.0 4.6 42.4 284.0 2.0 2.5 4.5 5.0 9.5 02/$ 03/$ 03/$ 05/$ 04/$ 40/ / 37/ / 39/ / 35/ / 37/ /
Balance Sheet -24- Unit : billion 200 90.6 95.8 20.00 Account Account Cash Cash Payable Payable 47.8 46.7 30. 309 Loans 0 50 Account Account Loans 0 Receivable Receivable Others 34.5 Others 35.8 39.8 4.0 Inventory Inventory 29.0 3.6 00 Net Asset 29.9 Others.9 Net Asset 25.2 Others 3.4 Cash 50.0 Account Receivable 40.0 Inventory 3.5 Others 5.6 Account Payable 32.6 Loans 0 Others 34.9 Net tasset 33.5 50 Property Property 29.3 30.2 Equity Ratio Equity Ratio Investment 65.% Investment 32.7 33.0 65.7% 0 R.O.E. 7.9% 3.3% R.O.A. 5.% 22% 2.2% 203FY 204FY st Half Property 30.0 Investment 33.9 6.6% 43% 4.3% Equity Ratio 65.8% 204FY Total (Forecast)
Investment & Inventory Plan -25- Unit : billion 30 22.5 290 3.6 5 24.8 23.2 R&D 6 CAPEX Amortization Depreciation Inventory 3.5 29.7 7 20 0 Information Communication 84% 8. 2 6 6. 2.5 3 Information Communication 84% 3.5 Audio 4% Audio Common 4% 0 2% Common 2% 203FY 4 3.0 204FY st Half Information Communication 88% Common 2% Audio 0% 66 6.6 7. 64 5.8 6.4 204FY Total (Forecast) *Dot-line: as of 4/30,204
Cash Flow -26- Unit : billion 20.8 203FY 204FY st Half 204FY Total (Forecast) 5 3.2 0.8 0 3 5.2 5 4.4 0 2 5.0-5 3.8 7.2-0 8.2 Operating CF Investment CF Free CF