Alps Alpine : Integrated Report 2023(English version)

INTEGRATED

REPORT

2023

Publication of Integrated Report 2023

Integrated Report 2023 is based on our corporate philosophy, "Alps Alpine innovates value for humans and society on a brighter planet." Under this philosophy, we have defined the areas in which we provide value as "excitement," "safety," and the "environment," and have summarized our specific value creation activities and our strategies toward management, financial, human resources, envi- ronmental, corporate governance, and other important management issues from the viewpoint of integrated thinking.

Four years have passed since the former Alps Electric and the former Alpine merged in 2019. We are now in the second year of our 2nd Mid-Term Business Plan. During this period, the environment surrounding us continued to change

dramatically, with the impact of the COVID-19 pandemic on global production and supply and disruptions in the supply chain, as well as the rapid rise in prices of raw materials and components, soaring energy prices, rising labor costs, and other inflationary factors. Due to these factors, although net sales for the first year of our 2nd Mid-Term Business Plan exceeded our target, our operating income margin decreased from the previous year. To overcome this situation, we will realize our goal of becoming an "Innovative T-shaped Company (ITC101)," the type of company and business we are aiming for, by once again steadily advancing the business policies of the 2nd Mid-Term Business Plan, namely "Business Quality Improvement and Advancement," "Cost Reforms,"

Value Creation Story Value Creation Activities Business Activities Data Section

Promotion Structure

Person in Charge: Satoshi Kodaira, Director

Publication Office: Sustainability Promotion Office

Planning and Content Creation

Corporate Planning Office, Sustainability Promotion Office, and Corporate Communication Department

Content Creation and Support

Corporate Treasury Department, Corporate Accounting Department, Human Resources Department,

General Affairs Department, Information Systems Department, Intellectual Property Department, Compliance &

Audit Office, planning offices in charge of each business segment

Sales Planning Office, Engineering Planning Office, Production Planning Office, Procurement Planning Office, Quality Planning Office

and "Capability Reforms." In particular, we have organized and completed our "Human Resources Strategy," which is a pillar of our Capability Reforms and supports values creation, and our "Environmental Strategy," which is indispensable for the sustainable development and growth of society and the Company. Further detail on these strategies are available in this report. Please take your time to take in the information and give us your feedback and honest opinions.

The information contained in Integrated Report 2023 is the result of discussions involving all of the Company's directors, and, as the person responsible for issuing this report, I hereby declare that our production process is legitimate and the content contained herein is accurate. Moreover, this report has been prepared with reference to the Guidance for Collaborative Value Creation 2.0 of the Ministry of Economy, Trade and Industry

Scope

Organizations

The report covers the entire Alps Alpine Group worldwide, although coverage may vary for different activities.

Period

The report principally covers the period from April 1, 2022 to March 31, 2023, but it does include some activities occurring prior to or later than this period.

Caution Concerning Forward-Looking Statements

Numerical plans, activity plans, and other forward-looking statements in this report are based on judgments reached by Alps Alpine using the information currently available. Please understand that actual performance and results may vary considerably from scenarios described in forward-looking statements due to a wide range of factors.

Published in September 2023

(METI) and the International Integrated Reporting Framework of the IFRS Foundation.

August 2023

Satoshi Kodaira

Director, Executive Vice President

CFO, Corporate Planning

Person in charge of issuing integrated report

Reporting Media

Integrated Report 2023

Website		Website		Website
Investor Relations		Sustainability		Our Company
https://www.alpsalpine.com/e/ir/		https://www.alpsalpine.com/e/csr/		https://www.alpsalpine.com/e/company/
Financial Information	Non-Financial Information

ALPS ALPINE CO., LTD.INTEGRATED REPORT 2023

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CHAPTER	Value Creation Story	CHAPTER	Value Creation Activities
01	4	CEO Message	02	17	Materiality
8	Alps Alpine's Value Creation Process		17	Materiality
9	History of Alps Alpine		18	Material Issues and Measures
10	Corporate Vision	19	Progress of the 2nd Mid-Term Business Plan
	11	The Uniqueness of Alps Alpine			19	Business Quality Improvement and
	12 Transition of Products and Technologies				Advancement
			21	Cost Reforms
	13	Alps Alpine Products and Their Markets
			22	Capability Reforms
	14	Alps Alpine's Social Value Proposition
		23	Financial Strategy and Capital Management
	15	Utilization and Strengthening of
		26	Sustainability Management
		Management Resources
				27	Environmental Strategy for Realizing
					a Sustainable Society
					28	Decarbonization
					29	Circular Economy
					30	TCFD-Based Information Disclosure
				33	Product Quality and Safety
				34	Sustainable Procurement
				35	Human Resource Strategy to Support
					Value Creation
					36	Securing and Developing Human Resources
					37	Promotion of Job Satisfaction
					38	Diversity and Inclusion
					40	Respect for Human Rights
					41	Workplace Environment and Occupational
CONTENTS				Health and Safety
	42	Corporate Governance
		47	Directors, Directors and Audit and
			Supervisory Committee Members,
						and Vice Presidents
INTEGRATED REPORT 2023				49	Compliance
ALPS ALPINE CO., LTD.				51	Risk Management
					52	Outside Directors' Roundtable Discussion
				56	Stakeholder Engagement

03CHAPTER

04CHAPTER

Business Activities

58 Overview of Business Operations

58 Component Segment

60 Sensor and Communication Segment

62 Module and System Segment

Data Section

1. Financial Highlights
2. Non-FinancialHighlights
3. Summary of Key Management Indicators

69 ESG Data

1. Corporate Data
2. Stock Information
3. Consolidated Financial Statements
   74 Consolidated Balance Sheet
   75 ConsolidatedStatement of Income and Comprehensive Income
   76 ConsolidatedStatement of Changes in Net Assets
   78 ConsolidatedStatement of Cash Flows
   79 Notes to Consolidated Financial Statements
   104 Independent Auditor's Report

ALPS ALPINE CO., LTD.INTEGRATED REPORT 2023

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Value Creation Story Value Creation Activities Business Activities Data Section

Value Creation Story

C H A P T E R	4		CEO Message
01	8		Alps Alpine's Value Creation Process
9		History of Alps Alpine
10		Corporate Vision
11		The Uniqueness of Alps Alpine
12		Transition of Products and Technologies
13		Alps Alpine Products and Their Markets
	14		Alps Alpine's Social Value Proposition
	15		Utilization and Strengthening of Management Resources

ALPS ALPINE CO., LTD.INTEGRATED REPORT 2023

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C E O M E S S A G E

Value Creation Story Value Creation Activities Business Activities Data Section

We are accelerating our evolution into an Innovative T-shaped Company that continues to create value beyond expectations and projections by focusing management resources on the integration of hardware and software.

Hideo Izumi

Representative Director, President

Software Development as a Temporary Transfer was the Starting Point of My Career

My name is Hideo Izumi, and I am honored to have been appointed President and Representative Director of Alps Alpine.

I joined the former Alps Electric in 1985 and have spent most of my career in the business and engineering fields. Although my decision to join the Company was based on studying communications technology as a student, on the second day of my employment, I was transferred to the former Alpine Electronics, then a subsidiary of Alps Electric. Alps Electric, a hardware-only business at the time,

foresaw the growing importance of software that would come later and sent young employees to learn technology and know-how from Alpine, which excelled in the software domain. I was involved in software development related to car telephones at Alpine for around two and a half years. After returning to Alps Electric, I was assigned to hardware development and design, although I was late to the game compared to my peers. Looking back, there is no doubt that the awareness I was instilled with immediately after joining the company of the fact that a product is only complete when software is incorporated into the hardware had a significant impact on forming the rest of my career.

Note: President Izumi's photo was selected by a vote of employees.

ALPS ALPINE CO., LTD.INTEGRATED REPORT 2023

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