Investor Relations

Financial Forecasts

Consolidated Financial Forecast for FY2018
(Year Ending March 31, 2019)January 29, 2019

 In the global economy, the effects of trade friction between the United States and China have gradually emerged. Amid economic slowdown in China and confusion about the direction of the United Kingdom’s “Brexit” from the European Union, the outlook for major economies is increasingly uncertain. In the business world, both automobile and smartphone markets have become unstable underfoot due, for example, to slowing growth, but electronics is playing a growing role, particularly in automotive CASE domains, as well as in the areas of artificial intelligence and robots, pivoting around Internet of Things (IoT) technology.
 This time of turbulent change and transition was the backdrop to the inauguration of new company Alps Alpine Co., Ltd., with the business integration in January. Alps Alpine endeavors to be a company that can achieve sustained growth by becoming an “Innovative T-shaped Company that combines the vertical “I” of the former Alps Electric, furthering possibilities with core devices to enhance product competitiveness, and the horizontal “I” of Alpine, integrating a broad range of devices and technologies as systems. Also encompassing the logistics segment, which is looking to expand business volume by bolstering its global network, the various elements of the Alps Alpine Group will continue efforts to apply their strengths and enhance corporate value.

Electronic Components

 In the electronic components segment, all markets have entered a period of major transition. CASE trends in the automotive market are gathering pace as a result of technological innovation. A once-in-a-century major transformation is underway as not only automakers, but also players in a wide range of sectors, are exploring the CASE domains. Meanwhile, in the mobile market, growth in the smartphone sector seen over the past several years is expected to slow.
 Electronic components segment will pursue “dual pillars of profit” in the automotive and mobile markets, seeking further profitability improvements. Emphasis will be placed on developing products for the CASE domains, adding momentum to activities aimed at securing business for the future.
 In EHII market operations, efforts will be made to establish foundations for business early on through continuation of proposal presentations and partnerships with other corporations. The company will also advance various activities aimed at building up production infrastructure in Japan and overseas and lifting productivity.
 Electronic components segment forecasts net sales of \469.0 billion (a 8.8% year-on-year decrease) and operating income of \29 billion (45.2% decrease) in the electronic components segment.

 

Automotive Infotainment

 In the automotive infotainment segment, Alps Alpine will adapt to the new CASE trends in the automotive industry by fusing sensing and communication device technologies with software technology in the development of human-machine interfaces (HMI) providing emotive experiences and cabins for both drivers and passengers, while delivering total automotive infotainment system solutions.
 Automotive infotainment segment forecasts net sales of \302.9 billion (a 13.2% year-on-year increase) and operating income of \14.5 billion (5.6% increase) in the automotive infotainment segment.

 

Logistics

 In the logistics segment, growth of business in the electronic components industry, the main target market, is expected to continue due to increasing application of electronics in automobiles and expanding demand in emerging nations for such products as mobile devices. However, customers require logistics reforms that are increasingly complex and diverse as they adapt to product and market changes by producing in the most suitable locations and shifting operations overseas, and as they increase efficiency to cope with price competition for electronic components. In this segment, Alps Logistics will continue efforts, primarily within the main electronic components logistics business, to expand business volume globally, promoting sales to new and existing channels and strengthening the health of the business.
 Logistics segment forecasts net sales of \67.5 billion (a 4.4% year-on-year increase) and operating income of \5.1 billion (3.9% increase) in the logistics segment.

 

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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