Alpine 2010 Annual Report Download - page 14

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During the fiscal year ended March 31, 2010, the world economy showed signs of partial
recovery in financial-related sectors and stock markets from mid-year onward, bringing
evidence that the recession had bottomed out. However, aggravated employment conditions
and reduced incomes impeded personal consumption. These and other factors resulted in a
continued severe overall economic climate.
The automobile industry featured major structural changes, led by regionally disparate
developments for manufacturers: failures in the United States, restructuring and integration
in Europe, and developing nations’ emergence as a serious economic force. Against this
background, the governments of Japan, the United States and various European countries
responded with new car replacement subsidization policies, which spurred sales of compact
cars and environmentally responsive vehicles. In addition, the automobile markets of
developing nations expanded, with China overtaking the United States as the leading country
in terms of unit sales of new cars during the year.
There were indications of recovery for the car electronics industry, but a demand shift toward
compact cars, which feature lower factory installation rates for navigation systems, and
lackluster personal consumption undermined sales of brand-name products and after-market
sales to automobile manufacturers.
Under these conditions, the Alpine Group persevered in its drive to improve performance,
launching new products in the domestic after-market and carrying out aggressive activities
geared to gaining orders from automobile manufacturers. We also promoted our “CHALLENGE
30 Plus” program of structural reforms, implemented thorough cost-reductions, streamlined
investment in R&D and capital investment, and revised our global production system.
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 an expanded market share. However, intensified price competition
over head units contributed to harsh operating conditions. In the European and U.S. after-
markets, sound system products with upgraded cabin audio quality, including speakers and
amplifiers, and Bluetooth-enabled CD players, which were launched in the European market
during the second half of the year, posted steady sales. Nonetheless, CD players, which
started the term on a positive sales note in North America, suffered sales declines, impacted
by lackluster personal consumption.
Orders for brand-name products by automobile manufacturers showed a partial recovery as a
result of a return to appropriate inventory levels for new cars following a period of adjustment.
However, the tardy pace of recovery in production by automobile manufacturers meant that
these positive indications stopped short of a full-blown recovery in sales.
Such key products for the segment as car audio equipment, led by CD players, continued
to gravitate toward integrated visual and car navigation products. For Alpine, sales of such
integrated products tend to augment sales in the Information and Communication Equipment
Segment, to the detriment of Audio Products Segment sales.
As a result of the above factors, sales by the Audio Products segment during the term
decreased by 20.3% compared to the corresponding period of the previous fiscal year, to
¥70.5 billion (US$757.3 million).
Information and Communication Equipment Segment
In this segment, we focused on the Rear Vision Navigation X08 Premium, a newly debuted
product in the domestic after-market, expanded our “minvan car life strategy,” developed
promotional activities targeting the family consumer bracket, and reinforced proposal-based
marketing. This system solution gained widespread acclaim from customers. In addition,
we provided added-value products and services attuned to customer needs through such
initiatives as deploying lines tailored specifically to individual car models and introducing
packages for hot-selling eco-cars. We also bolstered business for new car dealers and
promoted sales of Car Beena, a rear-seat entertainment system, with combined educational
and recreational benefits for younger passengers. This and other measures contributed to the
segment’s sales during the term.
The Rear Vision Navigation X08 Premium is a system product composed of a Rear Vision
rear-seat large-screen, high-picture-quality entertainment system, compatible with DVD and
terrestrial digital broadcasting, and an X08 navigation system with an advanced driving-
assistance function. During the fiscal year, the Rear Vision Navigation X08 Premium was
awarded a 2009 Nikkan Jidosha Shimbun (a daily automotive newspaper) product prize in the
Car Navigation category.
Overseas Sales
(Millions of yen)
2006 2007
138,335
2008
215,281
2009
228,379
2010
166,873
219,056
Capital Expenditures
(Millions of yen)
2006 2007
4,379
2008
10,778
2009
12,620
2010
10,160
13,673
Total Assets/Net Assets
(Millions of yen)
2006
181,185
120,908
2007 2008
153,036
97,036
2009
169,553
112,377
2010
132,423
96,874
167,785
116,265
Total Assets
Net Assets
Net Assets for the years from 2006 is recalculated.
Consolidated Financial Review