Alps Alpine : 2023 IR-DAY Material

Securities Code：6770

2023 IR Day

May 26, 2023

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Status of the 2nd Mid-Term Business Plan

Looking toward 2027

Status of and Prospects for Each Business segment

Financial and Capital Policies

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Status of the 2nd Mid-Term Business Plan

Looking toward 2027

Status of and Prospects for Each Business segment

Financial and Capital Policies

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Vision and 2nd Mid-Term Business Plan Targets

Corporate Vision and Business Vision

"ITC101"
FY2027
Innovative T-shaped Company with operating income margin
and ROE of 10%, and operating income of ¥100.0 billion

• Maximizing stakeholder value and balancing both CSR and ESG
• A T-shaped company that creates excitement, safety, and environmental value through both hardware and software technologies.

2nd Mid-Term Business Plan Targets

Progress report on FY2022 on April 28, 2023

Mid-term(FY2024): Operating income margin deteriorated 2-3 percentage points due to inflation

itc88 … Operating income margin 8% (=ROE 10%), Net sales ¥800.0 billion minimum

Return to growth trajectory by continuing business quality improvement, cost reform and capabilities reform

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Progress of the ITC101/FY2027

【Earnings】 Inflation of 6% not brought sufficiently under control, 2-3% deterioration in operating margin

【Winning future business】 Prospect of ITC101 becoming visible. Outcomes relative to one year ago exceeding expectations

	FY2022 outcomes (invisible one year ago)
Component	Amusement market of ¥50 billion has come into range as the third pillar
of the business after automobiles and smartphones
	- FY2022 ¥15.0bn → FY2024 2x → FY2027 Games ¥40.0bn, Amusement (inc. XR) ¥50.0bn
Sensor &	Safety & Green in 3rd Mid-Term Business Plan, working on doubling size
Communication	of business
（S＆C）	+Win large solutions projects (digital key, recurring business)	Hardware +
	Within range of ¥650 billion for M&S by FY2027,	Software
Module & System	Integration
increase of ¥250 billion in sales will dramatically improve profitability (at rate of ¥110)	synergies
（M＆S）	Promoting shared platform for shift to integrated ECUs and new Digital Cabin products,
and concentrating on strategic customers
	Announce withdrawal from unprofitable models (operating loss ¥4.0 billion) to customers and
	post impairment losses

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