Alpine 2011 Annual Report Download - page 14

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During the fiscal year ended March 31, 2011, the world economy saw favorable demand
trends in emerging economies, particularly in Asia. However, in Europe, the recovery in the
German economy was offset by the recurrence of financial instability in certain countries and
economic conditions remain patchy in this region. Meanwhile in the United States, although
some economic indicators continue to improve, uncertainty still hangs over the future and the
overall economic climate continues to be severe.
The automobile industry saw a modest recovery in new vehicle sales with China, spurred
by ongoing economic growth, maintaining its place as the leading country in terms of unit
sales of new cars for the second year running, and the symbolic relisting of General Motors
taking place on the New York Stock Exchange. The industry in Europe was buoyed by robust
exports by German manufacturers of luxury cars. In Japan, sales of new cars, which had
been firm owing to government subsidies for purchases of environment-friendly cars, dropped
precipitously in the second half of the year in the wake of the termination of this support.
The car electronics industry experienced major changes in its market, with sales of portable
navigation devices (PNDs) falling in line with the spread of smartphones and tablet PCs.
Domestic after-market sales of navigation systems were as a consequence of the increase
in new-vehicle sales. But demand for home electronics fell in the second half of the year
following the withdrawal of subsidies under the “eco-point” system, and demand for car
electronic products was also hit by this shift. In Europe, however, factory installation rates
for navigation systems and displays saw gradual recovery as demand is apparently shifting
back toward mid-sized luxury and large vehicles following the trend for compact cars after the
Lehman shock.
In this environment, Alpine launched three new navigation systems in the domestic after-
market and sought to raise product appeal and expand sales by proposing “vehicle-specific
car-life solutions.” In addition, to secure business growth in the expanding Chinese market,
Alpine worked to enhance brand recognition by participating in the Beijing Motor Show, and
began supplying products suited for local automakers. Meanwhile, although yen appreciation,
coupled with tight supplies for in-vehicle-use display panels, pushed up the cost of parts
and materials, we worked to improve operating performance by continuously promoting our
“CHALLENGE 30+ (Plus)” program of structural reforms launched in the previous fiscal year.
Performance by Segment
Audio Products
In the Audio Products segment, we carried out aggressive proposal-based marketing in the
domestic after-market of high-end speakers and amplifiers for minivans with clear cabin audio
reproduction, leading to strong sales. However, intensified price competition contributed to
flat sales of head units such as CD players. Sales of affordably priced CD players were firm in
the North American market but amid users’ greater appetite for low prices, high-added-value
products such as head units that can be linked to Pandora Internet radio via smartphones,
experienced harsh selling conditions. In the European market, sound system products with
upgraded cabin audio quality centered on high-grade speakers posted steady sales, although
in step with severe price competition Bluetooth-enabled CD players saw a sluggish market
and sales dropped.
Sales of OEM products to automobile manufacturers increased in line with recovering
production and sales in Europe and the United States of new automobiles by major
customers, as well as robust demand in the Chinese market.
As a result of the above factors, sales by the Audio Products segment during the term
decreased by 0.8% compared to the corresponding period of the previous fiscal year, to
¥69,898 million (US$840.6 million).
Information and Communication Equipment Segment
In this segment, in the domestic after-market, we sought to strengthen our navigation
line-up by launching the X05, which has on-board flash memory and offers superior cost
performance, adding to the “Big X”, which received a 2010 product Grand Prix from
automotive industry trade publication Nikkan Jidosha Shimbun, with its 8-inch screen (the
largest on the after-market) making maps and text easier to read and with a touch panel for
improved operating convenience, and the X08S car navigation system, successor to the
X08, which earned acclaim in the preceding fiscal year. Further, in anticipation of lower new
vehicle sales following the termination of government subsidies for purchases of environment-
friendly cars, we also worked to expand the number of car models that can adopt our “perfect
fit” series, which is attractively fitted to individual car models. Also, firm sales of a camera
system that links to a vehicle’s navigation system to support driving safety contributed to
expanded sales in the segment. In addition, in an effort to increase sales we aired a television
Overseas Sales
(Millions of Yen)
138,335
165,972
228,379
2011
166,873
219,056
2007 2008 2009 2010
Capital Expenditures
(Millions of Yen)
4,379 4,882
12,620
2011
10,160
13,673
2007 2008 2009 2010
Total Assets/Net Assets
(Millions of Yen)
181,185
120,908
153,784
98,760
153,036
97,036
132,423
96,874
167,785
116,265
Total Assets
Net Assets
Net Assets for the years from 2006 is recalculated.
2007 2008 2009 2010 2011
Consolidated Financial Review