Mid-Term Business Strategy

Mid-Term Business Strategy
Apr 28st, 2016
President & CEO Toru Usami
The earnings projections and other forward-looking statements
herein are based on certain assumptions made in light of
the information currently available to ALPINE and include potential
risks and uncertainty. Actual results could differ from these forecasts
due to changes in various factors surrounding the businesses of the Company.
-1-
1
Business Review
2
Mid-Term Business Strategy
3
Mid-Term Business Plan
-2-
1
Business Review
2
Mid-Term Business Strategy
3
Mid-Term Business Plan
Business Environment
-3-
Required prompt actions for rapid/various environment changes
Natural Environment Change
Unpredictable
Disasters/Epidemics
①Earthquake, Typhoon,
Volcano explosion
②Heavy rain,
Sediment disaster
③ Zika fever
Politics/Economics Change
Unstable/Uncertainty
due to geopolitics risk
Automotive Industry Change
Changes on market trend &
automotive digitization
①US：Consumption bullish
①SUV in good sales
Rate hike trend
②Information terminal
②China：Slow economy
of the car
③EU：Refugee issue
③Responsibility on quality
Terrorism concern
④Competition environment
④Crude oil price trend
change on car electronics
⑤Exchange rate trend
industry
2015FY Review
-4-
Impact by the changes in the year
to the original assumption
¥110／$
¥139／€
294.6
11.5
FY14 Result
¥115／$
¥125／€
¥120／$
¥133／€
Sales decline factors：
285.0
273.0 ①Sluggish sales in overseas
aftermarket
②New vehicle sales trend
Sales decrease
：△6.1
change in China market
Exch. Rate impact：+1.3
・Slow sales in luxury cars
R&D cost
：△1.4
Other costs
：+1.6
(‘15/4~)
・Subsidy for small cars
(‘15/10~)
③Model Mix change on new
10.0
vehicle sales in global
market
5.4
(SUV/Light Truck increase)
FY15 Original
FY15 Result
OEM biz.：Prizes from customers
-5-
Deepen relationship with customers
Create customer value as OEM specialist
HONDA Access
2016 Supplier Award
Awarded for the
development of
additional functions
on mounted camera
system
GM
Supplier of The Year
・Awarded two consecutive years
・Evaluated on ”Quality”, “Innovation”
“1st class product”
・Highly evaluated for proactive
proposals/solutions for various
matters
FCA APAC社
Innovation Supplier of the Year
Awarded for high
level quality and
innovative sound
on audio equipment
Aftermarket biz.：Activities in Japan
-6-
Various awards for
continuous activities to create customer value
J.D.Power #1
(Aftermarket in-dash Navi.)
Four consecutive years
【Evaluated point】
■Navigation function
■Sound and visual function
■HMI
■Monitor
The 8 th Parenting Award
Goods segment
【Evaluated point】
■Provide happy hour for the
parenting family in their car life
■Health-conscious product with
Plasma Cluster.
■Further improved on all
■Practical goods to provide
evaluated points
enjoyable car life for the
■High satisfaction from users parenting family
AutoSound Web 2015
Golden Award
Four consecutive years
【Evaluated point】
■Accurate & comfortable sound
■Persistency on components
■Sound tuning for vehicle
specific
■Highly evaluated on
“Alpine Sound”
-7-
1
Business Review
2
Mid-Term Business Strategy
3
Mid-Term Business Plan
-8-
New Car Sales forecast
New car sales market grows by 2~3%
Main customers keep higher share in main markets
(US, Europe, China)
New Car Sales Forecast
Forecast for Alpine’s Customers
(million)
(million)
120 ※Light Vehicle: 乗用車+商用車
80
(6t以上のトラック 及び バスは除く)
100
87
89
92
94
97
101
104
Alpine
Customers
Others
2016
70
Asia Pacific
91.9百万台
60
60
Others
China
80
24
25
27
27
29
31
32
60%
50
India
Russia
Brazil
E. EU
40
40%
36
37
38
2015
2016
2017
39
41
42
30
40
14
15
16
16
16
16
17
W. EU
20
N.America
20
20
21
21
21
22
22
22
10
JPN
日本
0
2014
2015
2016
2017
2018
Source: LMC Automotive “Global Car and Truck Forecast(2015.1QTR)“
2019
2020
0
2018
2019
2020
-9-
Changes on automotive industry
Mobility innovation : car connected to human, home, society
Change on lifestyle and values
Mobility society
150
IoT for car
Autonomous
driving
Forecast
Autonomous driving
new vehicle sales
(unit million)
Shard economy
126
117
105
100
87
89
59
59
51
50
78
77
4
V2X
4
20
1
10
32
level4
level3
level2
50
Connect to
Infrastructure
34
0
24
level1
12
9
2014 2015 2020 2025 2030
Source: YANO Research and other sources
-10-
Direction for Alpine biz. area
Focus on Information system and Safety system
New area to expand
Safety system
Current area
Information system
Safety driving support
ADAS
Display and
Cockpit
Now working
Area from the past
Navigation
Infotainment
Area to be linked
Body
system
Control
system
A/C
Power seat…
Stop Turn Run
-11-
Direction for R&D
Information system/Safety system
Technology strengthening area for future car society
Focused
Strengthening
area
Technical
foundation
SI
HMI
(System Integration)
(Human Machine Interface)
Security
Sensing utilization
(Early warning system)
(Alps collaboration)
Super accurate vehicle
positioning system
User based optimization
SI＆Evaluation
Software
development
Hardware
development
Acoustic.
Mechanical
development
Digital Media
Mechatronics
Sound
development
-12-
Advanced cockpit system
Advanced Cockpit
Collaborated development with customers, Alps and other partners
Cloud
Future Potential
Alpine Experienced
HUD
CID
Head Unit
Navigation
Cluster Display
Audio
Cockpit
Integration
Cluster Display
Integrated Display
(Cluster＆Infotainment)
Product example for Safety system
-13-
Awarded from Honda Access
for safety driving support system with rear camera
System Example for Honda Access
Cross Traffic Monitor
Blind Spot Information
(Back out Support)
Area detection
Lane Departure Warning
Area detection
Area detection
Moving direction
Moving direction
Moving direction
Warns if any objects are
detected on backing out
Warns if vehicles are
detected in the area on
changing lanes
Detect lane line and
warns on changing
lanes without making
blinkers
Expand biz. on Safety system area
Further collaboration with Neusoft
-14-
With Neusoft & Neusoft Reach,
biz. expansion in current area and making new biz. record
in the new area to deploy global automotive manufacturer
AVN
Cluster
Chinese
Local
Automotive
Manufacturer
T-Box
BMS
Drive
Assist
Cloud
Biz. Experience
in infotainment
industry
Technology
Automotive
Quality
COGs
improvement
Global
Automotive
Manufacturer
-15-
1
Business Review
2
Mid-Term Business Strategy
3
Mid-Term Business Plan
-16-
Mid-Term Business Plan
Accelerate “Scrap & Build” to achieve VISION2020
Net Sales
OP margin
(¥ billion)
350
285.8 294.5
300
265.0
273.0
252.0
262.0
250
201.2 202.9
196.6
Structural
strengthen for
future growth
222.3
200
168.5
11.1
10.1
150
7.0
9.8
5.6
5.4
2.3
100
FY1991
Listed TSE 1st
¥106.5 bill
11.5
4.5
0.2
50
FY1988
Listed TSE 2nd
¥74.8 bill
▲10.6
0
列2
列3 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
¥117/$
¥150/€
¥114/$
¥162/€
¥101/$
¥143/€
¥93/$
¥131/€
¥86/$
¥113/€
¥79/$
¥109/€
¥83/$
¥107/€
¥100/$
¥134/€
¥110/$ ¥121/$ ¥110/$
¥139/€ ¥133/€ ¥125/€
¥110/$
¥125/€
VISION2020
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