Securities code: 6770

Financial year ending March 31, 2024

Results Briefing FY2023 2Q

Monday, October 30, 2023

Today's Speakers

Representative Director

Director

CEO/CTO

CFO

Hideo Izumi

Satoshi Kodaira

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FY2023 2Q Financial Results

FY2023 Financial Results Forecast

Initiatives to Enhance Corporate Value

Reference Data

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FY2023 2Q Financial Results

FY2023 Financial Results Forecast

Initiatives to Enhance Corporate Value

Reference Data

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Financial year ending March 31, 2024

2Q Consolidated cumulative period result

[Unit: 100 million yen]

[Sales] Sales increased primarily due to the depreciation of the yen, a recovery in automobile production and the positive impact of new products despite

continued weakness in the consumer market.

[Operating Income] Despite progress in price optimization, operating income decreased primarily due to the negative impact of changes in the product mix in the mobile market and the failure to achieve the targeted yield rate for the launch of new module products in Europe.

FY2022 2Q

FY2023 2Q

YoY

Results(Cumulative) Results(Cumulative)

act of exchange r

Net Sales

454.2

475.0

+20.7

+18.3

100.0%

100.0%

+4.6%

Operating

19.9

10.6

-9.2

+3.7

Income

4.4%

2.2%

-46.6%

Ordinary

26.8

16.9

-9.9

Income

5.9%

3.6%

-37.0%

Profit Attributable

17.4

6.7

-10.7

to Owners of

Parent

3.8%

1.4%

-61.5%

Includes foreign exchange gains of 4.3

billion yen in the current period

USD / JPY

133.97

141.00

+7.03

EUR / JPY

138.73

153.39

+14.66

CNY / JPY

19.88

19.75

-0.13

Logistics segment to be accounted for using equity method from 2Q FY2023

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Factors behind Increase/Decrease in Operating Income

[Unit: 100 million yen]

Effect of

Major up and downs

Net

exchange rates

(-) Product mix change

sales

Variable

Material cost increase

cost

Extra cost for new product launch

(+) Price optimization

Fixed cost

(Labor costs, various

expenses and R&D costs)

Depreciation

expenses

Major up and downs

Others

Logistics

segment

(+) Car production recovery

(Accounted for

Increase new products for cars

by the equity

method)

(-) Products for mobile market

Major up and downs

(-) Wages, Energy cost increase Extra cost for new product launch

(+) R&D cost decrease

FY2022 2Q

Cumulative Financial

YoY -9.2

Results

FY2023 2Q

Cumulative Financial

Results

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Net Sales and Operating Income by Segment

FY2022 2Q

FY2023 2Q

YoY

[Unit: 100 million yen]

Net Sales

Results (Cumulative)

Results (Cumulative)

Component

160.0

150.4

-9.5

-6%

Sensor & Communication

44.4

40.7

-3.7

-8%

Module & System

221.5

274.3

+52.8

24%

Others

28.2

9.4

-18.8

Logistics segment to be accounted for

using equity method from 2Q FY2023

Total

454.2

475.0

+20.7

5%

Operating Income

FY2022 2Q

FY2023 2Q

YoY

Results (Cumulative)

Results (Cumulative)

Component

21.7

10.7

-11.0

-51%

13.6%

7.1%

Sensor & Communication

0.7

-1.4

-2.2

1.6%

-3.7%

Module & System

-5.2

0.5

+5.8

-

-

-2.4%

0.2%

Others / Eliminations

2.6

0.8

-1.8

Total

19.9

10.6

-9.2-47%

4.4%

2.2%

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Component Segments

Net sales

150.4 billion yen (YoY -9.5 billion yen)

[Unit: 100 million yen]

（－） Decreased in products for mobile market

-13.0

（－） Decreased in products for consumer market

-3.0

160.0

150.4

+7.0

（＋） Weaker yen

FY2022 1H

FY2023 1H

Operating income

10.7 billion yen (YoY -11 billion yen)

13.6%

Operating margin: 7.1%

（－） Change in the product mix

-9.0

（－） Decreased in net sales

-6.0

7.1%

21.7

（＋） Weaker yen

+3.5

（＋） Decreased in depreciation expenses

+2.0

10.7

FY2022 1H

FY2023 1H

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Sensor & Communication Segments

Net sales

[Unit: 100 million yen]

40.7 billion yen (YoY -3.7 billion yen)

（－） Product replacement for mobile market

-5.0

（－） Products for consumer and other markets

-1.5

44.4

40.7

（＋） Products for in-vehicle use

+1.5

（＋） Weaker yen

+1.5

FY2022 1H

FY2023 1H

Operating income

1.4 billion yen (YoY -2.2 billion yen)

1.6%

Operating margin: -3.7%

0.7

（－） Decreased in sales of products for mobile market

-1.5

-1.4

Increased in R&D expenses as advanced

-0.7

（－）

investment

-3.7%

FY2022 1H

FY2023 1H

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Module & System Segments

Net sales

[Unit: 100 million yen]

274.3 billion yen (YoY +52.8 billion yen)

（＋）

Recovery of car production and sales increased by

+42.8

new product

274.3

221.5

FY2022 1H

FY2023 1H

Operating income

0.5

0.2%

-5.2

-2.4%

（＋） Weaker yen

+10.0

500 million yen (YoY +5.8 billion yen) Operating margin: 0.2%

Sales increase, Product mix change (unprofitable

products decreased)

（＋） Delayed execution of some R&D costs to the second half

+12.5

of the fiscal year or later

Progress of price optimization in response to material

（＋） cost increase

+6.0

（－） Increase of new module product launch cost for EU

-4.0

（－） Additional royalties for past years on system products

-2.0

FY2022 1H

FY2023 1H

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Alps Electric Co. Ltd. published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 06:17:20 UTC.