Alpine 2010 Annual Report Download - page 5

CHALLENGE 30+
Gradual but solid recovery
5
Challenge 30+
The auto industry is undergoing a radical transformation. North
American automakers have gone bankrupt. European automakers
are merging and restructuring. New automakers have appeared
in emerging markets. National governments have taken steps to
promote replacement of older cars with new models. Compact
and environment-friendly car sales are healthy. China became No.1
in new car sales, having overtaken the United States; markets are
expanding in all of the emerging countries. In the car electronics
sector, there are signs of a turnaround, but with automotive demand
shifting to low-end compact cars, which have lower rates of
navigation system installation, and weakness in personal spending,
both OEM and aftermarket product sales remain weak. Confronted
with this situation, Alpine has not only introduced new products
in our domestic market in Japan. We have also aggressively
pursued new business from automakers. Our efforts to improve our
performance include Challenge 30+, restructuring our operations
to minimize fixed costs, improve efficiency on R&D and capital
investments, and reshape our global production system. Through
these efforts to meet the challenges of prolonged recession, we
have signifi cantly reduced our break-even point from 14 billion to 13
billion yen per month, a success refl ected in our return to the black
during the second half of this period.
Alpine’s quarterly sales hit bottom in the fourth quarter of 2008, then
began a gradual recovery. In the aftermarket segment, we introduced
the Bluetooth-enabled CD player and the X08 Premium integrated
multimedia system, both proactive steps to increase our market
share. Our “Perfect Fit” series, designed to simplify installation in
customer vehicles, became a new business model and drove solid
recovery in domestic sales, which rose 88% over 2008. In overseas
markets, however, intensifi ed price competition and weak consumer
spending limited further growth. In contrast, the standard equipment
for automakers segment saw the completion of adjustments in new
car inventory, with orders partially returning to proper levels. In North
America and China, sales of large and luxury vehicles, of which a high
proportion are equipped with navigation systems, showed signs of
gradual improvement, but sales for the year declined due to the impact
of lower sales during the fi rst half of the period. As a result, our audio
products segment sales totaled 70.4 billion yen (down 20.3% year-on-
year), while information and communication products segment sales
totaled 98.1 billion yen (down 9.4%).
0
200
-100
100
400
600
（100 million yen）
2008FY 2009FY
632
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Sales Operating income (right axis)
607
405
322 360 404 440 481
34
24
7
△39 △72 △48
△8
3
360
2010
Profit Growth
Growth Strategies
¥13 billion monthly B.E.P.
Improve
development
efficiency
Reduce
product costs
Improve
indirect
productivity
Aggressive
Growth Strategy
Defensive
30% Lower
Monthly B.E.P.
¥13 Billion
Structure
New Customer Business Model
Products Matched to Market Changes
Issues
Stronger Order-generating Capability (CTB, GTB)
Lower Product Costs
Improved Development Efficiency
Rethink global staffing
Lower salaries and bonuses
50% lower facilities investments
40% lower running costs
Improved Indirect Productivity
Integrated Organization
Heightened awareness, faster, slimmer
Stronger
Corporate Culture