Investors

In the Interim Results ending March 2025, sales of component products grew steadily and resulting in record sales for our company, while sales of products for the automotive market are slowing down due to the struggle in new vehicle sales of our customers. Under these circumstances, Alps Alpine is promoting management structural reforms with the aim of building our business structure that is resilient to changes in the business environment and sustainably increasing corporate value. The main initiatives are "Business Portfolio Reform" to withdraw from non-core and unprofitable businesses and shift to high-value-added businesses, and "Cost Structure Reform" to achieve an effect of 30 billion yen by the end of the fiscal year ending March 2025. In the first half of the year, we made progress largely as planned, including the partial sale of our equity interest in ALPS LOGISTICS, the transfer of our power inductor business, and the consolidation of our production bases at ALPS ELECTRIC (MALAYSIA).
Through these management structural reforms, we will strengthen our ability to generate cash, and then execute strategic investments and increase shareholder dividends. In terms of strategic investments, we will invest in human capital which is the foundation for corporate growth, such as the recruitment and training of software engineer resources and the construction of a human resource utilization infrastructure in global. In our business, we will concentrate our capital on core technologies with high growth potential, such as sensors, to strengthen our earnings structure. In terms of shareholder returns, we started to set DOE(Dividend on equity ratio) this fiscal year. Going forward, we will continue to pursue initiatives to accelerate ROE improvement based on our capital policy of maintaining a balance between growth investment, sound finances, and shareholder returns, with an awareness of the shareholders' equity cost.