Investor Relations

Financial Forecasts

Update on Consolidated Financial Results for FY2020
(Year Ending March 31, 2021)October 30, 2020

 Looking at the global economy over the six months ended September 30, 2020, economic measures in the United States had the effect of lifting consumption amid the ongoing spread of COVID-19. Economic conditions in Europe were also recovering but weakened again with a resurgence of COVID-19 infections. China has maintained its recovery trend after economic activity resumed in March 2020 and due to economic measures taken by the government. In Japan, consumer spending gradually improved with the help of government support measures, having earlier slumped during the state of emergency. Exports also picked up, particularly among manufacturers. However, capital investment remained weak and concerns about a resurgence of COVID-19 infections have meant the recovery is only moderate.
 Operating results for the six months ended September 30, 2020 are summarized below. Net sales figures indicated here represent sales to customers outside the Alps Alpine Group. Sales between reported segments (e.g. sales (supply of products) to the automotive infotainment segment from the electronics components segment, and sales (provision of logistics services) to electronic components and automotive infotainment segments from the logistics segment) have been eliminated as intra-group transactions. Additionally, comparisons and analysis against results for quarterly accounting periods of the previous fiscal year use adjusted figures determined at the end of the previous fiscal year, when finalization of provisional accounting for business combinations with Faital S.p.A., Faital U.S.A., Inc. and Magyarországi Hangszórógyártó Kft., on June 27, 2019, and Zhaopu Electronics (Shanghai) Inc., on July 1, 2019, was carried out.

Electronic Components

 In the automotive market within the electronic components segment, progress was made on development of next-generation sensing technology to support customer requirements relating to next-generation vehicle platforms. Alps Alpine was also recognized by overseas automakers acknowledging our creation of outstanding added value and use of innovation. In the consumer (and others) market, the company established capacity for an increase in production of a control device for ventilators in response to higher demand due to the spread of COVID-19, put forward a proposal for a touchless control panel with hygiene benefits, and entered into a strategic partnership with Sensirion Holding AG (Switzerland) aiming for expansion of environmental sensor business.
 The electronic components segment posted net sales of \170.7 billion (25.9% year-on-year decrease) and an operating loss of \1.3 billion (FY19 1st half: operating profit of \13.1 billion) in the six months ended September 30, 2020.


Automotive Infotainment

 Within the automotive infotainment segment, efforts were made to speed up development of products for our Digital Cabin lineup resulting from synergies with the electronic components segment, engage in development of digital keys based on blockchain technology for car sharing, as well as development supporting use of 5G platforms for autonomous driving, and strengthen mobility-as-a-service (MaaS) business for vehicle information management in connected cars. Alps Alpine also teamed up with McIntosh Group Inc. to deliver outstanding audio systems to the automotive industry.
 The automotive infotainment segment posted net sales of \112.3 billion (28.8% year-on-year decrease) and an operating loss of \3.9 billion (FY19 1st half: operating profit of \5.7 billion) in the six months ended September 30, 2020.



 Within the logistics segment, demand (freight volume) decreased due to the impact of the COVID-19 pandemic. It was under these circumstances that Alps Logistics started operation of a large warehouse in Japan with automated facilities as part of efforts to improve productivity. Overseas, establishment and enhancement of bases and networks continued. In August, a subsidiary specializing in customs clearance was established in China to help strengthen foundations for growth of forwarding business by speeding up customs-related operations.
 The logistics segment posted net sales of \32.4 billion (2.9% year-on-year decrease) and operating income of \1.4 billion (29.5% decrease) in the six months ended September 30, 2020.


The consolidated earnings forecast for the Alps Alpine Group, after adding forecasts for other segments, is as follows.

Financial Results Forecasts

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