Alps Alpine (6770) Investor Presentation summary

Management structure reform objectives and approach

• Aims to complete ¥30 billion annualized reform by FY24, targeting a V-shaped recovery and over 1x PBR by March 2027.

• Implements top-down, CEO-driven reforms with delegated COO authority and director-led initiatives.

• Structural Reform Steering Committee established to ensure rapid execution.

Portfolio and cost structure reforms

• Transitioning to high value-added products, especially in digital cabin and sensor-related areas.

• Terminating non-core and unprofitable products, aiming for ¥10 billion gross profit improvement in FY25.

• Personnel optimization, mainly overseas, to reduce annualized expenses by ¥6.5 billion.

• Consolidation of base functions and investment in manpower-saving measures to cut costs by ¥10 billion.

Business segment strategies and operational improvements

• Module & System (M&S) segment targets 5% industry-level profit in FY27 by expanding high-margin products and reducing costs.

• Component segment focuses on cost structure reform and sales expansion in automotive and amusement markets, aiming for ¥20 billion profit improvement by FY27.

• Sensor & Communication segment to expand profits via strategic product launches and market variety, including new automotive sensors.