Alpine Electronics : 【Investor Relations】 We made a disclosure of Annual Report 2016.

Annual Report 2016-2017

Annual Report 2016-2017

CONTENTS

Top Message 4

Overview of Alpine

Profile 6

Business Domains Value Chain 8

Business Report

Segment Information Sales Ratios 10

Financial/Non-financial Highlights 11

Corporate Philosophy

Alpine values its members as individuals, and is committed to forming an energetic and attractive company where the quality of work is enhanced.

1 Respect for Individuality

Alpine seeks to foster the pride and enthusiasm of each employee, providing the means and opportunities for growth, and encouraging relationships built on mutual trust.

2 Creating Value

Alpine eagerly takes up the challenge of maintaining technical leadership in creating new values that will enhance the quality of human life.

3 Contribution to Society

Alpine is committed to providing superior products and thus contributing to a fuller, richer society.

Conduct Guidelines

Creation, Passion, Challenge

We will boldly challenge ourselves to create new value and perform MONOZUKURI with passion.

VISION2020 Vision Statement

Alpine aims to be a Mobile Media Innovation Company that provides you with an enjoyable car lifestyle.

Editorial Policy

Up until fiscal 2015, Alpine has separately published an annual report, a corporate profile/CSR report and online CSR/environmental information. As of fiscal 2016, these have been combined into our annual report, which covers both financial and non-financial information. At Alpine, we believe in the importance of having our stakeholders understand our activities by actively disclosing information on our business plans, performance, CSR management policy, environmental conservation efforts and other aspects of our business. As such, we consider this report an important communication tool.

Designations Within This Report

Alpine: Refers to the non-consolidated domestic business.

Alpine Group: Refers to all consolidated companies around the world. Alps Group: Refers to the corporate group led by Alps Electric.

* ESG stands for environment, social and governance and is an important criterion for evaluating corporate value, together with financial information. This report provides a summary of the Alpine Group's ESG efforts.

Scope and Period Covered by Report

[Scope]

This report covers the Alpine Group in Japan and around the world, but

the scope of individual topics may vary.

[Period]

●In principle, this report covers the period from April 1, 2015 to March 31, 2016, but it does include some activities from before and after that period.

●The Japanese portion of the environmental report covers the period

from April 2015 to March 2016, and the overseas portion covers the

period from January to December 2015.

Published in July 2016

ESG Efforts

Research and Development 12

Intellectual Property 14

Quality Assurance 15

Material Procurement 16

Human Resource Cultivation 17

Diversity 18

Labor Safety 19 Environment 20

Local Community 22

Corporate Governance 23

Compliance 26 Risk Management 27

Information Security/Information Disclosure 28

Alpine CSR 29

Financial Data

Consolidated Financial Statements 30

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Annual Report 2016-2017 3

Message from the President

We will build a foundation for growth into a mobile media innovation company.

The decision has been made for a two-person management system consisting of Toru Usami, Chairman of the Board, and Nobuhiko Komeya, President & CEO. Working together, they will carry out their heavy responsibility, working on improving performance in the short term and improving profits from the perspective of company-wide optimization for future growth while actively responding to various changes.

The car electronics industry is currently in a period of major structural change against a backdrop of car computerization and changes in the motorized society. In the midst of this business environment, Alpine is promoting VISION 2020, the corporate vision for the year 2020. In VISION 2020, the vision for Alpine's future is to be a mobile media innovation company that provides you with an enjoyable car lifestyle. Our commitment is to make leaps forward as a company that creates new relationships between people and cars.

Looking back at f iscal 2015, the circumstances were dire for business results, including changes in new car sales trends in major markets and exchange rate fluctuations in the second half of the year. At the same time, customer-oriented efforts resulted in our OEM business being recognized as a strategic supplier by a

Top Message

partner automobile manufacturer. We also received several awards for our commitment to sound in our domestic commercial business and our product proposals focused on the car lifestyles of families raising children. We were also able to make progress on alliances in China and the United States aimed at developing products to contribute to the motorized society of the next generation.

Overview of Alpine

Business Report

Fiscal 2016 is the year to build a foundation for growth in order to achieve the targets of VISION 2020. With greater vigor and a sense of urgency, we will promote innovation based on customer value, increased cost competitiveness in the aim of achieving a profitable structure and the establishment of a unified global team system.

ESG Efforts

Considering CSR the very business activities that embody our corporate principles, Alpine will engage in ESG- conscious management in order to achieve sustainable growth. In the aim of becoming an attractive company trusted by our stakeholders, including shareholders, customers, employees and local communities, we promise to work on improving corporate and shareholder value.

July 2016

Achievement of VISION 2020

• Midterm Business Forecast

■ Sales ■ Operating profit

2,858

2,945

2,730

2,650

2,520

(hundred millions of yen)

2,620

FY1991

Listed on first section of TSE

¥106.5 billion

1,966

1,685

2,012 2,029

2,223

Establishment of foundation for growth

President Chairman of theBoard

Nobuhiko Komeya ToruUsami

FY1988

Listed on second section of TSE

¥74.8 billion

101

70

111

56

2

98115

23

54 45

1988 06 07 08 09 10 11 12 13 14 15 16 18 20（Year）

Financial Data

(106)

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Profile

We work to maximize corporate value through our global sales,

production and development network.

Major Shareholders Contribution

• Shares As of June 2016

Trend in Stock Price

（Yen）

High Low

S S S

D

S

D H S

D

S

M

S S

Name

ALPS ELECTRIC CO., LTD.

STATE STREET BANK CLIENT OMNIBUS OM04

H

JAPAN TRUSTEE SERVICES BANK, LTD.

Number of

shares held (thousands of

shares)

Percentage of shares held

(%)

3,000

2,500

2,000

Top Message

1,500

1,000

500

Overview of Alpine

S

D

D H

S S

M

S

S S S

S

S

M

H S

S

M

S

S

M

H

S

S

D M

28,215	40.93
2,563	3.72
2,451	3.56
2,165	3.14
1,387	2.10
1,249	1.81
1,155	1.68
1,064	1.54
950	1.38
821	1.19

(TRUST ACCOUNT)

NORTHERN TRUST CO. (AVFC) RE IEDU UCITS

CLIENTS NON LENDING 15PCT TREATY ACCOUNT

THE MASTER TRUST BANK OF JAPAN, LTD.

0

'15/4 5 6 7 8 9 10 11 12 '16/1 2 3

（Year/month）

Share Distribution by Owner

S

H

S

M

ESG Efforts

D

(TRUST ACCOUNT)

S THE BANK OF NEW YORK MELLON

SA/NV 10

THE BANK OF NEW YORK, NON-TREATY

JASDEC ACCOUNT

STATE STREET BANK AND TRUST COMPANY 505001

THE BANK OF NEW YORK, TREATY

JASDEC ACCOUNT EVERGREEN

Note: Percentage of shares held excludes treasury shares.

Foreign investors/ Overseas institutional

investors

36.69%

Individuals

4.97%

Total

68,933,693 shares

（excluding treasury shares）

Financial institutions

Business Report

(including investment trusts, pension trusts and securities companies) 15.99%

Corporations

42.35％

• Outline As of March, 2016

  Name Position and Responsibility/Primary Role

• About the Committee Members As of June 2016

Corporate Name ALPINE ELECTRONICS, INC.

1-1-8 Nishi-Gotanda, Shinagawa-ku,

ALPINE ELECTRONICS MARKETING, INC. ALPINE TECHNOLOGY MANUFACTURING, INC.

Name Position and Responsibility/Primary Role

Toru Usami Chairman of theBoard

Nobuhiko

Hirofumi

Morioka

Director

Audit and Supervisory Committee (Full-Time)

Headquarters

Tokyo 141-8501

Tel: [phone] (main line)

Domestic

Subsidiaries /

ALPINE MANUFACTURING, INC.

ALPINE PRECISION, INC.

Komeya

President

Hideo Kojima * OutsideDirector

Audit and Supervisory

Certified Public

Accountant

Iwaki

Date of

20-1 Yoshima Industrial Park, Iwaki City, Fukushima 970-1192

Tel: [phone] (main line)

Domestic

Affiliates

ALPINE GIKEN, INC.

ALPINE INFORMATION SYSTEM, INC. ALPINE BUSINESS SERVICE, INC. ALPINE CUSTOMERS SERVICE CO., LTD.

Three others

Hitoshi Kajiwara Managing DirectorAdministration

Naoki Mizuno Managing DirectorSales

Koichi Endo Managing Director Technology and

Development

Satoko

Hasegawa

Naoki

Committee

• Outside Director

  Audit and Supervisory Committee

• Outside Director

Lawyer

Lawyer

May, 1967

Establishment

Overseas Subsidiaries /

ALPINE ELECTRONICS OF AMERICA, INC. ALPINE ELECTRONICS (EUROPE) GmbH

Toshinori Kobayashi

Director United States/Europe

Yanagida

Audit and Supervisory Committee

Common Stock 160,000,000 shares

Overseas

Affiliates

ALPINE ELECTRONICS (CHINA) CO., LTD.

ALPINE OF ASIA PACIFIC INDIA PVT., LTD.

Shuji Taguchi DirectorQuality/Environment

*Asterisks indicate external members of the Audit and Supervisory Committee.

Note: Hideo Kojima, Satoko Hasegawa and Naoki Yanagida are independent directors according to the Company's criteria for determining independence, and their names

Total Issued

Stocks

68,933,693 shares

(850,808 treasury shares not included)

28 others

Yasuhiro Ikeuchi Director ProductDesign

Youji Kawarada DirectorProduction/Materials

have been submitted to the Tokyo Stock Exchange as independent directors.

Paid-in Capital ¥ 25,920 million

Shinji Inoue Director Product DesignAssistant

Number of Employees (Consolidated)

11,908

(total from 35 consolidated companies)

Masataka Kataoka

Director

Financial Data

President & CEO,

Alps Electric

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