NO.183
ALPS ALPINE
REPORT
Jun 25, 2025
To Everyone,
In FY2025, highly uncertain conditions have persisted, driven by the growing formation of economic blocs in addition to the confusion sparked by tariff issues in North America.
Operating under these conditions, Alps Alpine has finalized the three-year Mid-Term Management Plan that had been put on hold, and also formulated a new corporate vision that looks a decade ahead.
As for why we chose now to revise our corporate vision, since being appointed CEO I have visited 17 domestic sites and 27 overseas sites, speaking with some 2,200 employees in total. In the course of doing so, I got a strong sense that for the company as a whole to move forward in one direction, we need some sort of guiding principle, like a compass. Moreover, through dialogue with many shareholders, I have been reminded of the need for Alps Alpine to clearly state where it will direct its focus going forward.
Over this past one-and-a-half-years, and with the cooperation of our global employees, we have devised a new corporate statement: "shaping a future where technology extends your senses."
Using technologies, we will shape a world in which people's senses and objects are seamlessly connected.
Since the integration of Alps Electric and Alpine, we have maintained a range of elemental technologies related to human-machine interfaces (HMI), commercializing a range of products that combine this with our software development capabilities and IC design expertise.
In recent years, in step with advances in generative AI, we have also seen multi-modal AI—which is able to combine and analyze different physical and chemical data in addition to video, text and audio—enter the mainstream.
As a result, multi-modal sensing, where only the necessary information is extracted from multiple sensors, has grown in importance.
Alps Alpine already possesses these technologies, and we are looking beyond cabin spaces in the mobility sector to areas such as humanoid robots and the field of advanced services in an aging society, leveraging the technology in every situation that requires people to interact with technology to provide solutions that create interfaces that are easy for anyone to use.
Going forward, we will make every effort to clearly communicate the path that Alps Alpine will take and demonstrate this with actual business results.
Thank you for your ongoing and unwavering support and guidance.
Business Overview and Outlook BUSINESS OVERVIEW AND OUTLOOK
Financial Highlights※Figures in below chart are rounded to the nearest whole number
Net sales
Unit: ¥billion
Operating income/Operating income margin
Unit: ¥billion
(%)
Ordinary income
Unit: ¥billion
Net income per share
Unit: yen
Dividend Trends
（Yen）- Interim Dividend
- Year-end Dividend
Overview by Business Segment
composition ratio
990.4
Unit:¥billion
Component Segment
■ Net sales increased year on year, driven by a strong performance in mobile products, and expanded sales in the consumer and automotive markets
Net sales increased due to the depreciation of the yen, product demand in the consumer and mobile markets, and expanded product sales in the automotive market. Operating profit also increased, helped by the weak yen and higher sales.
- Net Sales 348.0
- Operating Income 30.3
Changes in Net Sales
Unit: ¥billion
Operating income
Unit: ¥billion
Sensor & Communication Segment
■ Net sales were nearly the same as the previous year, while operating profit decreased
Net sales remained roughly on par with the previous fiscal year, reflecting upward pressure from the weak yen and rising product demand for the mobile market, despite a decrease in product sales for the automotive market due to a transitional period in which conventional keyless entry system models are being replaced with digital key products.
Operating profit decreased due to an increase of development expenses.
- Net Sales 84.1
- Operating Loss 3.3
Changes in Net Sales
Unit: ¥billion
Operating income
Unit: ¥billion
Module & System Segment
■ Although net sales decreased year on year, operating profit increased, reflecting improvement in variable costs and an increase in the recovery of development costs
Net sales decreased, primarily due to the weak performance of the automotive manufacturers that are our main customers in the Chinese market and the discontinuation of European models for system products.
Operating profit increased mainly due to a reduction in the number of unprofitable products and improvements in abnormal costs of new module products through measures to reform the cost structure.
- Net Sales 537.2
- Operating Income 5.6
Changes in Net Sales
Unit: ¥billion
Operating income
Unit: ¥billion
Outlook for the fiscal year ending March 31, 2026
Net Sales910.0
（Unit: ¥billion Y on Y-8.1%）
Operating Income17.0
（Unit: ¥billion Y on Y-50.2%）
Ordinary income18.0
（Unit: ¥billion Y on Y-41.0%）
Net income
attributable to
owners of parent4.5
（Unit: ¥billion）
Assumed Exchange RateUSD/JPY=140.00yen、
EUR/JPY=160.00yen、
CNY/JPY=19.50yen
Dividend Per Share
(non-consolidated)30yen
（Interim dividend）
30yen
（Year-end dividend）
Component Segment
While sales of products for consumer devices, mainly game consoles, are expected to increase and products for the automotive market are expected to remain strong, we expect net sales and operating profit in the mobile market to decline due to intensified competition and declining market share of some models.
Mobility Segment
(The name of the “Module and System Segment” has been changed to the “Mobility Segment.”)
Sales of products to automotive manufacturers in Japan, North America, and Europe, which are our main customers, are expected to continue to struggle, particularly in the Chinese market. Moreover, net sales and operating profit are expected to decrease as a result of additional tariffs which will lead to decline in vehicle production in North America and China compared to market expectations.
Sensor & Communication Segment
Sales of automotive device products are expected to remain strong; however, we expect net sales and operating profit to decline due to a decrease in the number of conventional models of keyless entry systems products for the automotive market as well as the transitional period until digital key products are fully launched.
Start of the Mid-Term Management Plan 2027 SPECIAL FEATURE
To accelerate growth that will enable further gains in corporate value, Alps Alpine announced a three-year Mid-Term Management Plan 2027 that will run from the fiscal year ending March 31, 2026 (FY2025) to the fiscal year ending March 31, 2028 (FY2027). Under the Mid-Term Management Plan2027 we will strive to create corporate value through a trio of basic policies: the pursuit of high added value, preparation of the next main business, and strengthening the management base.
Targeting a PBR of 1x by FY2026 and an ROE of 10% by FY2027, we aim to improve capital efficiency while expanding highly profitable businesses.
The Mid-Term Management Plan 2027
Outline
Challenges to be addressed in the Mid-Term Management Plan 2027
Monetization of
Mobility Segment
Absence of growth drivers
Reduction volatility
in earnings forecasts
Strengthening profitability
by improving capital efficiency
Basic Policy and Key Measures
1
Pursuit of high added value
- Shift to a Digital Cabin
- Integration of the Mobility Segment
- Withdrawal of unprofitable products and narrowing down of product lineup
2
Preparation of the next main business
- Strengthen investment in sensor area
- Strengthen marketing (Identification of promising markets)
- Introduction of new products based on core technologies
3
Strengthening the management base
- Reorganization of production bases and domestic reinforcement
- Human capital investment
- Software development investment
- ROIC Management
- Balance Sheet Management
Achieve PBR of 1x (FY2026) ROE of 10% (FY2027)
■ A product lineup to support the growth of Alps Alpine
Continued with the three-business segment and changed the name of Module & Systems to Mobility.
Focus on Component, Sensor & Communication Investments
In the Components Business, we aim for further profit growth by strengthening and reforming existing businesses, and strive to create new products that will be pillars of growth through core technologies.
sensor
switch
switch
In the Sensor & Communication Business, we will expand our business domains through the use of in-house core technologies while pursuing new market development with multi-modal sensing solutions that also integrate mobility assets.
sensor
sensor
（HEV/EV）
Tracker
optical communication
In the Mobility Business, we will commence mass production of our Digital Cabin in April 2026, and hasten the shift of our portfolio for the SDV age to further enhance value.
Speaking with Satoshi Kodaira,
Executive Vice President, COO and CFO
In the Mid-Term Management Plan 2027
Main questions for Alps Alpine from shareholders
Representative Director
Satoshi Kodaira
Executive Vice President COO,CFO
Tell us about the main points of the Mid-Term Management Plan 2027.
In the Mid-Term Management Plan 2027, we have identified the following three basic policies.
- 1. Pursuit of high added value
To improve the profitability of the Mobility Business, we will shift to a Digital Cabin, integrate the previous Module & System business under the Mobility Business and withdraw from unprofitable products.
- 2. Preparation of the next main business
We will step up investment in the sensor area, strengthen marketing and expand sales with the introduction of new products based on our core technologies.
- 3. Strengthening the management base
We will undertake measures to further reinforce our management base, including strategic investments totaling 100 billion yen, the introduction of ROIC management, as well as balance sheet management.
We have set the following financial targets for the final year of the plan (FY2027; *exchange rate of 145 yen to the US dollar).
- - FY2027: ROE of 10%
- - Net sales: 1 trillion yen or more
- - Operating income/OP margin: 71 billion yen / 6.6%
- - Profit attributable to owners of parent: 45 billion yen
（Assumed Exchange Rate ￥145/US$）
Please tell us about shareholder returns
In terms of dividends for shareholders, we have set a target dividend on equity ratio of 3%.
This fiscal year we plan to issue dividends of 60 yen per share. Note that we plan to maintain this 3% dividend on equity ratio up to 2028, and depending on financial conditions in 2029 and beyond when the next Mid-Term Management Plan will begin, we may revise this ratio.
Similarly, we will also consider share buybacks.
What new products can we expect to see in the future?
In the Component Segment, strategic products include EV charging point isolator switches and haptic devices (controller vibration) for game consoles in the consumer market.
In the Sensor and Communication Segment, strategic products include object detection sensors, digital keys (car keys are replaced with smartphones), vehicle occupancy detection and trunk opener (kick sensor) solutions using mmwave sensors.
In the Mobility Segment, strategic products include digital cabin products using multi-modal sensing technologies such as cabin domain controllers and cabin monitoring solutions.
News@ALPS ALPINE
Exhibiting at CES 2025 in Las Vegas
Alps Alpine exhibited at CES 2025, which was held at the Las Vegas Convention Center from Tuesday, January 7 to Friday, January 10, 2025.
The booth size was larger than the previous year, and a wide range of items were put on display, from consumer products to automotive products.
Notable Products on Display
1A1M Multi-use Millimeter Wave Radar Sensor
This product boasts an excellent robust structure and environmental resistance, making it suitable for use in a wide range of situations. It is able to detect the distances between multiple objects simultaneously by passing through objects with weak reflections, such as the contents of a cardboard box or the liquid surface in a plastic tank. It also incorporates a high level of accuracy that reduces the likelihood of false positives even in challenging environments such as water vapor and dust. It is also Bluetooth®-enabled, enabling the sensor to be configured and monitored from a computer screen.
* Software required
Tactile Adjustable Switches
This product is a switch that uses magnetic and sensor technologies to combine adjustable tactile feedback and actuation depth when switched on.
In the amusement market where components undergo heavy use, the demands placed on Controller requirements are becoming increasingly diverse year after year. Using this product not only offers a control feel that can be tailored to the user's individual preferences, but also allows tactile feedback to be adjusted based on different in-game scenarios.
This helps elevate the sense of immersion.
To contribute uplift local communities, Alps Alpine has entered into sponsorship agreements with teams based in Miyagi, Fukushima and Niigata.
Alps Alpine has signed sponsorship agreements with the professional baseball team Tohoku Rakuten Golden Eagles, based in Miyagi Prefecture, professional soccer club Iwaki FC, based in Fukushima Prefecture, and the professional basketball team Niigata Albirex BB, based in Niigata Prefecture. With these sponsorships, we aim to contribute to the revitalization the local communities where our sites are based through sports.
