Investor Relations

Message from the CEO

Alps Alpine aims to be a company that can achieve sustained growth and views operating income margin, equity ratio, free cash flows, return on invested capital (ROIC) and inventory turnover period among important financial indicators from the standpoint of enhancing corporate value and strengthening our financial position.

Growth investment at Alps Alpine currently involves development of products for automotive and mobile markets, as well as development of business in new market sectors—specifically, energy, healthcare, industry and IoT (EHII)—which are expected to take over from the slowing smartphone market as upcoming core domains. Emphasis will be placed on product development for the CASE automotive domains, while integration with Alpine will be advanced as part of efforts to secure future business.
In adapting to the commoditization of smartphones, we will diverge from our earlier approach of developing business through up-front investment and instead work to achieve further profit improvements by enhancing the versatility of capital investments so they can be fully utilized and the investment recovered.

As a management indicator, we have set an ROIC target of at least 10%. ROIC is calculated by dividing net income attributable to parent company shareholders by the sum of equity capital and interest-bearing liabilities (invested capital). The aim is to bring about improvements to the balance sheet by working to maximize net income attributable to parent and improve profitability, while enhancing equity capital and reducing interest-bearing liabilities through free cash flow. ROIC for the Alps Group for the fiscal year ended March 31, 2018, was 12.7%.

Alps Alpine's basic policy on distribution of profits is to strike a balance between three elements—returns to shareholders; funds for R&D and capital investment to support future business expansion and enhanced competitiveness; and internal reserves—as determined looking at consolidated profit for the electronic components segment. In accordance with this policy, taking into account financial performance, financial position and shareholders' expectations for dividends, we plan dividends of ¥50 per share for the fiscal year ending March 31, 2019.