profile―/―financial―highlights p8 - alpine electronics amp supports various systems....

Message from the President― ―――――― 　P4

Products― ―――――――――――――――――――　 P6

Profile―/―Financial―Highlights― ――――― 　P8

Corporate―Philosophy― ―――――――――　P10

Alpine―CSR――――――――――――――――― P12

Feature:―Round―Table― ――――――――― P14― Individual―Thoughts―on―CSV―at―Alpine

Alpine’s―Business―Activities ― ―――― P18 Marketing ― ―――――――――――――――― P19 R&D― ――――――――――――――――――― P20 Material―Procurement ― ――――――――― P22 Manufacturing ― ――――――――――――― P23 Quality― ―――――――――――――――――― P24 Services― ――――――――――――――――― P25

CSR―Activity―Highlights―2014― ――― P26

Corporate Governance ― ―――――――― P30

ISO―26000―and―Alpine― ―――――――――――― P31

C O N T E N T S

Editor ia l ―Pol icy

Corporate―ProfileCSR―Report2015-2016

CSR―Informat ion Information―on―Alpine’s―business―and―CSR―isprovided―in―this―pamphlet―and―on―the―website.This―pamphlet―was―prepared―to―provide

stakeholders―with―a―deeper―understandingof―Alpine’s―business.―It―combines―theCorporate―Profile―and―CSR―Report―andintroduces―our―relationship―with―people,society―and―the―global―environment―throughour―business―activities.

Target Scope ● Target scope: 34 consolidated companies● Target period: April 1, 2014 – March 31, 2015

Referenced Guidelines

● Environmental Reporting Guidelines 2013 (Ministry of the Environment)● Sustainability Reporting Guidelines 3rd Ed. (GRI)● ISO 26000 (International Organization for Standardization)

This Report This report focuses primarily on the basic management system and newefforts in fiscal 2014.

WebsiteInformation on our activities in general, including the contents of this report,is available online.CSR/Environment Website http://www.alpine.com/j/csr/

Related Reports Detailed financial information is disclosed in our Annual Report.

Next Publication Scheduled for June 2016.

Note: This report includes not only past and current facts but also forecasts based on plans, outlooks and management plans/policies at the time of publication. These are assumptions and determinations based on information available at the time and may differ from actual results due to the impact of global economic trends, changes in the global environment and other factors.

2 Alpine―Corporate―Profile/CSR―Report―2015/2016 3Alpine―Corporate―Profile/CSR―Report―2015/2016

Message from the President

Message from

the President

Changes―in―the―environment―surrounding―Alpine

The― changes― surrounding― our― lives― and― businesses― are―becoming―increasingly―intense,―including―those―occurring―in―the―natural―environment,―the―realm―of―politics―and―the―economy,―and―the―market―environment.―In―recent―years―there―have―been―undreamt-of―natural―disasters,― including―droughts― and― landslides,― as―well―as―geopolitical―risks―like―the―Ukraine―problem―and―international―terrorism―that―have―manifested―and―impacted―the―global―economy.―As― such,― businesses― are― required―more― than― ever― to― engage― in―management― that― anticipates― changes― and― risks.― Additionally,―while―the―automobile―industry―continues―to―expand―and―new―car―sales― approach― the― 100―million―mark― driven― by― sales― in―China―and―the―United―States,―a―new―business―environment―continues―to―develop,―including―the―emergence―of―outside―competition―in―the―field―of―automatic―driving.―In―the―car―electronics―industry,―there―have―been―further―developments―in―automobile―computerization―and― diversification― of― driver― needs.―As― such,― a― higher― level― of―support― for― new― onboard― infotainment― such― as― linking― with―smartphones― is― required―of―onboard― information―equipment.― In―the― midst― of― these― circumstances,― Alpine― is― strengthening― our―SMD― (Sales,― Manufacturing― and― Development)― system― while―tracking― changes― in― the― market,― and― we― are― striving― to― make―reforms―of―our―own.

Taking―our―business―domains―to―the―next―level

In― fiscal― 2014,― Alpine― established― our― “VISION2020”―corporate―vision―that―lays―out―the―ideal―we―wish―to―attain―by―2020―along―with―the―medium-term―business―plan―for―bringing―that―vision―about.―The―vision―statement―of―VISION2020―is―that―we―will―strive―to―be―a―mobile―media―innovation―company―that―enriches―your―car―lifestyle.―We―have―declared―that―we―will―become―a―company―that―offers―premium―car―lifestyles―with―joy―and―inspiration―that―exceed―our― customers’― expectations.― We― have― also― been― adding― new―domains― like― cloud― services― that― connect― cars―with― the―outside―world― and― cockpit― displays― that―meet― the― needs― of― automobile―

manufacturers― to― our― existing― business― domains― of― AVNCD―(Audio,―Visual,―Navigation,―Communication―and―Drive―Assist)―and―taking―them―to―the―next―level.

The― three― year― period― beginning― with― 2014― has― been―designated―as―a―time―of―consolidating―a―foothold―for―achieving―the― objectives― of― VISION2020,― and― we― are― working― on―developing―a―growth― foundation― from―various―angles.― In―our―business― development― efforts,― we― are― accelerating― moves―to― strengthen― our― competitiveness,― including― the― launch― of―products―that―integrate―with―smartphones―so―that―various―apps―and―services―can―be―enjoyed―safely―and―comfortably―in―the―car,―R&D―on―new―HMI―(human―machine―interfaces)―that―detect―the―mental― and― physical― conditions― of― the― driver,― and― alliances―for―the―development―of―next-generation―onboard―platforms.―In―all―of―Alpine’s―business―activities,―all―employees―of―the―group―form―a―single―team―that―works―together―to―deliver―innovative―and―creative―products―and―services.

As―a―continually―growing―company

In― preparation― for― VISION2020― and― beyond,― Alpine― has―prioritized―three―C’s―(Connect,―Change―and―Cost).―The―first―C―is―“connect.”―We―will―connect―with―various―stakeholders,―including―the―market― and― our― customers― and― place― value― on― cooperation―and―bonds.―The―second―C― is―“change.”―Alpine―will―continue― to―change―in―order―to―respond―to―the―turbulent―changes―of―society,―the―environment―and―market―competition.―The―third―C―is―“cost.”―We― will― engage― in― activities― with― a― firm― emphasis― on― cost―awareness― in― order― to― maintain― sound― corporate― management.―We―will―aim―for―sustainable―growth―while―fulfilling―our―corporate―social―responsibility―based―on―our―management,―which―centers―on―human―resources―possessing―these―three―C’s.―

Companies― today― are― expected― to― not― only― fulfil― their―responsibility― toward― society― and― the― global― environment― but―also― to― partner― with― stakeholders― to― solve― social― problems.―Alpine―considers―our―CSR―activities―to―be―the―very―activities―that―embody―our― principles― of― respect― for― individuality,― creation―of―

value― and―contribution― to― society.―As― such,―we―have―promoted―CSR―activities―that―are―one―with―our―business―activities.―In―fiscal―2014,― we― adopted― the― perspective― of― CSV― (Creating― Shared―Value)―as―a―more―strategic―approach―to―CSR―in―pursuit―of―striking―a― balance― between― social― and― corporate― value.―We― did― this― to―further―strengthen―the―connection―between―our―CSR―and―business―activities,― and― we― are― accelerating― our― CSR― management.― At―the― same― time,― we― also― clarified― materiality― for― both― society―and―Alpine―in―order―to―systematically―implement―CSR―activities―that―reflect―the―opinions―of―our―stakeholders.―Alpine―promises―to―continue―endeavoring―to―create―value―that―contributes―to―a―mobile―society― together― with― our― customers,― shareholders,― investors,―suppliers,― employees― and― the― local― communities― where― our―facilities―are―located,―especially―Iwaki―City,―Fukushima,―which―is―home―to―our―headquarters.

May―2015

Contributing―to―a―sustainable―and―mobile―society―as―a―mobile―media―innovation―company

President―&―CEO―――Toru Usami


Products

Products

Providing―a―premium―car―life―that―exceeds―customer―expectations

AV―Head―Unit

Car―Navigation―System

Smartphone―App

Rear―View―Camera

Speakers Amp

Rear―Vision

Alpine links equipment to enhance driving safety and comfort. For example, we offer systems that let you see what your children are doing without turning around by showing video of the rear seat caught by the rear seat camera on the screen of the car navigation system.

iLX-007 [North America/Europe/Asia]

We provide Apple CarPlay with

high image and sound quality in a

sophisticated, flat design.

BIG X Premium [Japan]

X-701DA [Europe]

Our model-specific car navigation

systems come with 10-inch monitors,

the largest in the industry. We began

providing these systems overseas in 2013

and are expanding the supported models.

TuneIt [North America/Europe/Asia]

This system can be linked to

“TuneIt,” Alpine’s smartphone

app to enable various

cloudbased services.

HCE-C1000 [Japan]

Bright, clear images are displayed even

in dark places to assist with smooth

parking.

PKG-F171SW [Japan]

We provide the ultimate sound with

design and fine-tuning specifically for

Vellfire/Alphard to

increase owner

satisfaction.

PDR-V75 [North America/Europe/Asia]

Our 5-channel high sound quality digital

power amp supports various systems.

PXH12-RB-AV [Japan]

Enjoy digital terrestrial broadcasts and

DVDs even from the rear seats on a

large 11.4-inch screen. Loaded with

Plasmacluster technology that cleans the

air in the vehicle.

Visual

Navigation

Communication

Drive Assist

Audio

S ys tem S olu t i on

We―deliver―various―systems―and―devices―from―the―audio,―visual,―navigation,―

communication―and―drive―assist―business―fields.


Profile / Financial Highlight

Profile / Financial H

ighlight

2,012

11/3

(Hundred millions of yen)

2,029

12/3

2,223

13/3

2,858

14/3

2,945

0

500

1000

1500

2000

2500

3000

15/3 (Year/month)

2020 20

25

30

0

5

10

15

20

25

30

35(Yen)

11/3 12/3 13/3 14/3 15/3 (Year/month)

(Hundred millions of yen)115111

56

23

98

0

20

40

60

80

100

120

11/3 12/3 13/3 14/3 15/3 (Year/month)

(%)

67.463.7

60.4

64.9 65.1

0

50

60

70

11/3 12/3 13/3 14/3 15/3 (Year/month)

H

HH H

We―work―to―maximize―corporate―value―through―ourglobal―sales,―production―and―development―network.

S

S

S

SS

SS

SS S

S

S S SS

S

S

SS

S

S

S

S

M

M

M

M

Headquarters

Sales Base

Manufacturing Base

Development Base

H

S

M

D

D

DD

S

M

D

HD

Regional Sales

Key Financial Data

Sales (Consolidated)

Dividends

Operating Profit (Consolidated)

Capital Adequacy Ratio

Employee-Related Data

Sales by Product Segment

(People)

0

6000

8000

10000

12000

10,835 11,058 11,10711,608 11,343

11/3 12/3 13/3 14/3 15/3 (Year/month)

Americas14%

Asia3%

China38%

Japan31%

Europe14%

Established May 10, 1967

Capital ¥25,920,590,000

Employees11,343(Total of 34 companies on a consolidated basis asof March 31, 2015)

BusinessDescription

In-car A udio Products/In-car Information & Communication Products

Stock Listing 1st Section, Tokyo Stock Exchange

Total Number of Shares Authorized to be Issued by the Company

160,000,000 shares

Total Number of Shares Issued 69,784,501 shares

Alpine Electronics, Inc.

HeadOffice

Tokyo: 1-1-8 Nishi-Gotanda, Shinagawa-ku, Tokyo 141-8501Tel: +81-3-3494-1101 (main line)Fax: +81-3-3494-1109

Iwaki: 20-1 Yoshima Industrial Park, Iwaki City, Fukushima 970-1192Tel: +81-246-36-4111 (main line)Fax: +81-246-36-6898

Executives

Toru Usami, President & CEONobuhiko Komeya, Senior Managing Director Hiroshi Morioka, Managing DirectorHitoshi Kajiwara, Managing Director Naoki Mizuno, Managing DirectorToshinori Kobayashi, Director Koichi Endo, DirectorShuji Taguchi, Director Yasuhiro Ikeuchi, DirectorYoji Kawarada, Director Masataka Kataoka, DirectorSatoko Hasegawa, Outside DirectorKatsumi Tobita, Standing Audit & Supervisory Board Member Kazushige Ejiri, Audit & Supervisory Board MemberHideo Kojima, Outside Audit & Supervisory Board MemberNaoki Yanagida, Outside Audit & Supervisory Board Member

S

Global Distribution of EmployeesNumber of Employees (Consolidated)

Information & Communicationproducts segment

Audioproductssegment21%

79%Europe31%

UnitedStates37%

Asia23%

Japan9%


Corporate Philosophy

Corporate P

hilosophy

Pursuing―unchanging―value―while―responding―to―changes―in―the―environment

At―Alpine,―we―engage―in―our―daily―activities―based―on―a―management―cycle―for―pursuing―achievement―of―our―corporate―

philosophy.―We―strive―to―achieve―our―targets―and―dreams―by―the―power―of―our―people―and―organization―while―sharing―the―

direction―we―are―pursuing―(corporate―vision)―and―business―targets―to―be―achieved―across―the―company.

Since 2005 Alpine has defined our

business domain as AVNCD (Audio,

Visual, Navigation, Communication,

and Drive-assist). The corporate vision

established in March 2014 builds on

AVNCD and expands in scope to include

cloud, which connects the inside of the

car with the outside world, and integrated

cockpit, which meets advanced needs

for car making of the future.

Alpine’s business is centered on

the OEM business, which responds

to advanced requirements from

automobile manufacturers around the

globe with proposals for various devices

and systems, and the commercial

business, which provides drivers with

products of the Alpine brand born from

thorough pursuit of customer value.

Business DomainsBusiness Model

Commercialproduct

development cycle

OEM product development

cycle for automobilemanufacturers

Rolloutof new

products

Creationof market

Earlyintroduction

of newtechnologies

PreliminaryOEM

proposalJoin

workshop

Receiptof order

Expansionof business

scale

CorporatePhilosophy

Eternal core valueof company

Aims / Stance

MarketChanges

ManagementStrategyPlanning /Objectives

Comparisonbetweenobjectiveand result

Daily Jobs

Conduct guidelinesshared by allemployees

Corporate Vision

Midterm BusinessPlan / Budget

Management

Daily Jobs

ALPINE’S MANAGEMENTFRAMEWORK

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

1 Respect for IndividualityAlpine 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 ValueAlpine eagerly takes up the challenge of maintainingtechnical leadership in creating new values that will

enhance the quality of human life.

3 Contribution to SocietyAlpine is committed to providing superior products

and thus contributing to a fuller, richer society.

Alpine aims to be a Mobile Media Innovation Company

that provides you with an enjoyable car lifestyle.

Corporate Philosophy

VISION2020Vision Statement

Conduct Guidelines

Creation, Passion, ChallengeWe will boldly challenge to create new value and perform

MONOZUKURI with passion.

Conduct GuidelinesThe advanced technology found in Alpine’s commercial products and the value created is applied to OEM products. The quality and reliability cultivated in OEM products are applied to commercial products. The synergy between the OEM and commercial businesses accelerates improvement of brand value and expansion of the businesses.


Alpine CSR

Alpine C

SR

Overall Principles

Corporategovernance

・Accountability・Transparency・Ethical conduct

・Respect for stakeholder interests・Respect for rule of law

・Respect for international norms・Respect for human rights

Communityparticipation Human rights

Labor practices

EnvironmentFair business

practices

Consumer issues

These guidelines represent the ideal to which we strive for each

priority of CSR activities prepared based on our corporate principles

and ISO 26000 in order to clarify our group policies and address the

requirements of our global stakeholders.

The organization is comprised of subcommittees covering matters set

forth in ISO 26000. Each subcommittee prepares annual targets and

action plans to implement the PDCA cycle. They are active on a global

scale, coordinating with overseas subsidiaries and the ALPS Group.

Coordination

CSR Committee

ALPS Group CSRdepartments

CSR PromotionOffice

Internal Control Subcommittee

RC Subcommittee*

Information Management Subcommittee

Labor Environment and Society Subcommittee

Risk Management Subcommittee

Environmental Management Subcommittee

Supply Chain Subcommittee

Consumer Subcommittee

Alpine’s CSR Guidelines CSR Promotion Organizational Chart

Alpine’s―CSR―efforts―arethe―very―business―activities―that―embody―our―principles.

CorporatePhilosophy

Corporate Vision

Posit ioning of A lpine’s CSR Act iv it ies

Execution Support

CSR Guidelines

CSR CommitteeCSV

Activities

Alpine―considers―CSR―activities―the―very―business―activities―

that―embody―our―corporate―principles.―Our―corporate―principles,―

which―are―the―unchanging―values―that―will―ensure―our―perpetuity,―

and―our―corporate―vision,―which―is―the―ideal―to―which―we―strive―

in―order―to―achieve―those―principles,―are―shared―by―all―employees.―

Each―individual―employee―engages―in―their―daily―activities―as―a―CSR―

leader.―Additionally,―we―have―prepared―our―own―CSR―guidelines―

referring―to―the―ISO―26000―international―standard―in―order―to―verify―

our―CSR―activities―from―a―global―perspective―and―are―engaging―in―

activities―accordingly.―In―fiscal―2014,―we―strengthened―our―CSV―

(Creating―Shared―Value)―endeavor,―which―strikes―a―balance―between―

value― for―society―and―Alpine’s―corporate―value― in― the―aim―of―

promoting―more―strategic―CSR―activities.―We―have―launched―efforts―

from―a―CSV―standpoint―in―our―business―activities―based―on―such―

themes―as―solving―social―problems,―considering―the―environment―

and―partnering―with―the―community.―

Moreover,―we―identified―materiality―in―order―to―proceed―with―

activities―in―response―to―the―expectations―of―our―stakeholders―and―

society.―Starting―in―fiscal―2015,―we―will―update―the―medium-term―

CSR―plan―with―those―issues―and―establish―KPI―(Key―Performance―

Indicators),―implementing―a―PDCA―cycle―that―includes―reviews.―

Alpine― believes― that― employees― coming― together― to―

promote―CSR―throughout―the―entire―value―chain―will―serve―as―the―

foundation―for―fulfilling―our―corporate―social―responsibility―and―

ensuring―growth―in―the―medium―to―long―term.―We―will―continue―to―

work―on―taking―our―CSR―activities,―which―embody―our―principles,―

to―the―next―level.

To―strike―a―balance―between―socialand―corporate―value

Nobuhiko―Kometani,―Executive―Director―and―CSR―Chairman

*RC (risk management and compliance) Subcommittee

Conduct Guidelines

CSV―(Creating―Shared―Value),―the―ideal―which―strikes―a―balance―betweenAlpine’s―corporate―and―social―value,―is―promoted―within―day-to-dayoperations,―and―the―CSR―Committee,―which―is―centered―on―the―CSRGuidelines,―supports―execution―of―those―activities.


Feature: Round Table

FeatureFeature: Round Table

Individual―Thoughts―on―CSV―at―AlpineAiming―to―Create―Products―and―Services―to―Solve―Social―Problems

*1 EV: Electric Vehicle *2 HMI:Human Machine Interface

●Rear camera●Gesture operations

●Line of sight detection

●Eco route searches by navigation systems

●EV*1 Special navigation●Non-mechanical head unit

●Large screen navigation system●Congested route search

●HMI*2 (Voice control, etc.)

Corporate―Planning―Dept.―CSR―Secretariat

KoShiraishi

OEM―International―Marketing―Dept.―2

Tsubasa―Okubo―

Product―Planning―Dept.

Chiaki Tazono

President―&―CEO

Toru―Usami

Legal―Dept.

Hirona―Watanabe

Advanced Core Development―Dept.

Shuhei―Hayashi

Sound―Product―Development―Dept.

ArataTada

Alpine―incorporates―a―CSV―(creating―shared―value)―perspective―into―our―business―activities,―and―we―hope―to―grow―as―a―company―while―contributing―to―solving―social―problems.―Company―President―Toru―Usami―and―members―from―various―departments―came―together―and―exchanged―ideas―on―the―value―that―Alpine―can―provide―to―society―through―products―and―services.

Alpine’s CSV Perspective in Product/Service Creation

Driver Distruction

HMIApple CarPlay

Driver distractionUsing a driving simulator, we measure the driver’s psychological load (such as their pulse) when operating on-board devices while reproducing various driving situations, including urban areas and highways, and use this information in research on HMIs that allow various features to be used safely and efficiently.

Case : 01

Case : 02

Value―expected―from―Alpine―products

Chapter : 01

Okubo:―As―a― sales― rep,― interacting―with―automobile―manufacturer― customers,― I―

feel― like― demand― for― improvement― of―

quality―and― fuel―efficiency― is―growing―by―

the―day.―Demand―for―safety/peace―of―mind―

and ease of use such as addressing driver

distractions*1―is―also―increasing.

Tazono: As―for―ease―of―use,―when―it―comes―to―products,―screen―sizes―are―getting―bigger.―

Navigation― systems―provide―drivers―with―

various― information,― and―by―making― the―

screen― larger,― the―buttons―and―display―are―

also―bigger,―making― it― easier― for― elderly―

people― to― use― as― well . ― Additionally,―

smartphones―have―become―popular,― and―

there― is― increasing―demand―for―being―able―

to―use― smartphones― in― the―car.―However,―

operating― a― smartphone―while― driving―

is― illegal,― so― a―major― theme―of― product―

planning― is―how―to― integrate―smartphones―

and―navigation―systems.

Hayashi: On―a― related― note,― accidents―caused―by―operating―smartphones―and―on-

board― devices―while― driving― are― a― big―

social―problem.― In― the―United―States,― the―

NHTSA―(National―Highway―Traffic―Safety―

Administration)*2―has― issued―guidelines―

on―HMI―(human―machine―interface)―for―on-

board―devices.―I―believe―one―value―expected―

of―Alpine―is―responding―to―those―guidelines.

Tada: Weight― reduction― to― improve― fuel―efficiency―and―increased―efficiency―for―energy―

conservation―are―issues―to―be―addressed―when―

it―comes― to―car―audio―systems.―Both―high―

sound―quality―and―reduction―of―environmental―

load―are―required.

Usami: We― hear ― a ― lo t ― about ― va lue―c rea t ion , ― but ― the ― va lue ― requi red ― of―

products― is―diverse,―varying― from―person―

to― person.― So― it’s― important― for―Alpine―

to―narrow―down― the― target―customers―and―

provide―the―value―they―seek.

Watanabe: Last― year― I― participated― in―a― project― that― reviewed― the― value― that―

Alpine―can―provide― to―women―in― their―30s―

to― 40s― raising― children.―Various― people―

participated,―including―persons―from―outside―

the―company,―and―we―discussed―problems―

and―complaints― related― to― the―car― life―and―

lifestyles― in―general―of― the―target―group.―In―

that―project,―we―were―able― to―uncover― in-

car―value―sought―by―women―like―eliminating―

the―uneasiness―of―not―being―able―to―see―their―

children’s―faces―while―driving―and―wanting―

to―keep―the―interior―clean.

*1―Driver―distraction:―A―hindrance―to―safe―driving―resulting―from―the―driver’s―focus―while―driving―being―on―something―other―than―driving,―such―as―operating―an―on-board―information―device―or―talking―with―passengers

*2―The―agency―within―the―United―States―Department―of―Transportation―tasked―with―managing―automobile―traffic―safety

Safety and peaceof mind

Environmental consideration/Energy

conservationComfort and ease

of use

Apple CarPlay compatible deviceIn the fall of 2014, we were the first to introduce an on-board device compatible with CarPlay, which is designed to ensure safer, more comfortable use of Apple’s iPhone® in cars, to the European and American markets. Not only does the product easily connect to the iPhone® allowing use of various apps, it was designed to be highly compatible with the Apple world.


Individual―pursuit―of―value―creation

Chapter : 02

In order to keep producing the desired―value

Chapter : 03

Feature: Round Table

BIGXCar Navigation for EVFresh Air Subwoofers

Social ValueEnterprise ValueOkubo: The― car― navigation― system― for―EVs―I―was―recently―in―charge―of―is―definitely―

one―of― the―values― that―will―be―sought―after―

in― the― society―of― the― future.― In― the―midst―

of― that,―Alpine―worked―to―develop―features―

especially― for― EVs,― like― Eco―Route― to―

control―energy―consumption―while―driving―

and―guidance―to―charging―stations.―I―believe―

how―well―Alpine― can― respond― to― social―

trends―with―added―value―will―be―important―in―

the―future.

Hayashi: In―my―division,―we―strive―toward―the―value―of― a― comfortable― and― easy-to-

use―cockpit.―The―NHTSA―guidelines― say―

that― the―HMI―for―on-board―devices―should―

not―have― the―driver―perform―complicated―

tasks―while― driving― a― car― or― have― them―

perform―a―task―over―and―over―again.―For―that―

reason,―we―have―put― together―a―system―for―

evaluating―whether―or―not―on-board―devices―

satisfy― the―guidelines―under―actual―driving―

conditions― using― a― driving― simulator.― I―

believe―this―evaluation―system―itself―is―also―

one―of―the―values―that―Alpine―can―provide―to―

automobile―manufacturing.

Tada: I―also―sense―value―with― respect― to―automobile―manufacturing―in―my―own―work.―

When―I―presented―the―Fresh―Air―Subwoofer―I―

was―in―charge―of―designing―and―developing,―

an― automobile―manufacturer― customer―

responded―with―very―high―praise,― saying,―

"Thanks―to―the―smaller―size―of―the―speakers,―

we―can―change―the―design―of―the―cabin."

Tazono: The― same―goes― for― the―BIG―X―large-screen―car―navigation―system― in― the―

sense―of―changing― the―cabin.―We―provided―

large-screen― car― navigation― systems―

designed― for― particular― vehicle―models―

that―were―8―and―9― inches― in―size―when―the―

standard―up―to―that―point―was―7-inch―screens―

and―received―support―from―many―drivers.

Usami: BIG―X―is―a―commercial―business―success― story― of― creating― new―value― by―

casting―aside―the―commonly―accepted―norm―

concerning―the―size―of―existing―products.―At―

the―same―time,―in―the―OEM―business,―we―have―

to―anticipate―new―needs―on― top―of―casting―

aside―commonly―accepted―norms.―I―believe―

that―by―putting―together―the―respective―results―

of― the―commercial― and―OEM―businesses,―

Alpine―can―create―unique―value.

Hayashi: The―cockpit―development―I―am―in―charge―of―is―truly―a―domain―of―anticipation.―

Using― sensor― technology,―we― engage― in―

development―of―new―HMIs―linked―to―driver―

bio-information―while―also―collaborating―

with―other―companies.

Usami: What― I ― want― to― focus― on― in―advance―development―is―not―getting―trapped―

in―manufacturer― logic.― In― the―electronics―

industry,― there― are―many― cases―where― a―

company―attempts― to―create―a―market―with―

new―technology―but―fails―because―it―does―not―

match―the―needs―of―the―public.―It’s―necessary―

to― pursue―value― that― is― truly― desired―by―

customers―while―thinking―outside―the―box.

Shiraishi: In― terms―of― finding―what― it― is―the― customer― truly― seeks,― the―previously―

mentioned― project― considering― the― car―

interior―needs―of―women―in―their―30s―to―40s―

raising―children―is―an―ideal―effort,―isn’t―it?

Watanabe: In―addition―to―involving―female―project―members― in― the―discussions,―we―

also―conducted―group― interviews―and―user―

questionnaires― targeting― that―population.―

We―found―that―many―women―feel― that― they―

are―poor―at―driving,―and―particularly―when―

they―are―driving―their―children,― their―safety―

consciousness― increases.―Based―on― those―

results,―we―were―able― to―propose―product―

packages― that― reduce―women’s―uneasiness―

towards― driving,― such― as― an― easy-to-

operate― car― navigation― system,― a― rear―

seat monitoring camera and a camera for

assisting―with―parking.

Usami: Currently―a―lot―of―attention―is―being―placed―on―active―participation―by―women,―

and―there―must―also―be―a―way―for―women―to―

take―on―a―more―active―role― in― the―world―of―

manufacturing― in―which―we―are― involved.―

I―would―like―to―create―an―environment― that―

allows―us―to―utilize―the―ideas―of―women―and―

young―people,―who―are―closer―to―the―market,―

rather― than― just― having―male― engineers―

engaged―in―manufacturing.

Fresh Air Subwoofer

The Fresh Air Subwoofer speaker for automobile manufacturers is significantly more compact and light weight than the old model, having achieved an 86% reduction in size and an 80% reduction in weight compared to the previous model, and at the same t ime, i t features improved sound q u a l i t y d e s p i t e the compact size, achieving a 10db increase in output.

Case : 04

Product packages for women raising children

We pictured the lifestyles and car lives of women in their 30s to 40s raising children and thought about what needs they had with respect to the car interior. We put their feedback, such as wanting to concentrate on driving while keeping an eye on their children and to keep the interior clean at all times, into product packages.

Case : 05

Car navigation system for EVsThis product is equipped with features befitting of a car navigation system for EVs, including showing the approximate distance to empty based on remaining battery life and driving mode. If the destination is further than the distance to empty, the system makes suggestions like switching to energy-efficient ECO PRO mode or stopping by the nearest charging station.

Case : 03

Tazono: Simply―providing― the―expected―value―as-is―will―not―satisfy―the―customer.―But―

they―won’t―accept―anything―that―is―imposed―

on― them―by― the―manufacturer,― either.―We―

will―engage―in―product―planning―work―while―

thinking―about―what―kind―of―value―Alpine―

can―provide―to―impress―our―customers―based―

on― the―practice―of― listening― to― customer―

feedback.

Okubo: Listening― to― your― opinions,― I―get― the―sense― that― there―will―be― increasing―

demand―for―value―proposals― that―consider―

the―end―users―who―are―the―customers―of―our―

automobile―manufacturer―customers.

Hayashi : There ― a re ― va r ious ― bas ic―technologies― that― we―must― pursue― as―

advanced―development― engineers,―but― in―

the― future―we―will― try― to―deliver―as―much―

added―value―as―possible―rather―than―simply―

responding―to―industry―guidelines.

Tada: Like―was―talked―about―earlier,―I―want―to―actively―propose―valuable―audio―products―

that―offer―both―high―sound―quality―and―high―

efficiency―while―maintaining―an―approach―

where―we―stick―close― to― the―customer―and―

attempt―to―change―our―way―of―thinking.

Watanabe: I’m―in―the―Legal―Department,―but― I―would― like― to― contribute― to― value―

creation―by―working― together―with―other―

departments―to―add―a―legal―dimension―to―our―

efforts―from―the―planning―and―development―

stages― rather― than―waiting―until― after― the―

new―technologies―and―products―have―been―

produced.

Shiraishi: As― for― the―CSR―Secretariat,―we―want― to―encourage―all―employees―to―be―

aware― of― the― relationship― between― their―

work―and―social―value.―I―believe―that―CSV―at―

Alpine―will―be―taken―to―a―higher―level―when―

employees―work―together―to―raise―awareness―

of―CSV.

Usami: It’s―no―simple―task―to― think―about―CSR―and―CSV―on― a―daily―basis,― but― it’s―

important―to―start―by―creating―opportunities―

to― talk―about―CSV.―We―can―then―reflect―on―

which―efforts―are― leading―to―value―creation―

and―which―are―not,―and― it―will―also―be―an―

opportunity―to―think―about―what―is―lacking.―

I― am― confident― that― by― continuing― to―

communicate―about―and―check―on―CSV―and―

pursue―the―value―desired―by―our―customers,―

Alpine― wil l ― cont inue― to― grow― while―

contributing―to―society―through―our―products―

and―services.


Alpine’s Business Activities | Marketing

Alpine’s―Business―Activities

Human―and―technical―network―for―creating―future―valueAlpine―is―setting―up―bases―all―over―the―world―as―we―seek―to―create―innovative

and―original―products―and―services―to―enrich―the―car―lives―of―our―customers.

We―are―thoroughly―focused―on―the―customer―in―all―our―business―activities

and―are―pursuing―value―that―only―we―can―provide―while―emphasizing―our

relationship―with―the―global―environment―and―society.

MarketingMarketingAlpine’s ―Business ―Act ivi t ies

Engaging―in―dialog―with―customers―to―create―value―from―the―customer’s―perspectiveAlpine― listens― to― feedback― from―our―customers―all―over― the―world― to―deliver―

products―and―services―that―exceed―their―demands―and―expectations.―Demonstrating―

our―unique― technical―and―planning―capabilities,―we―aim―to― improve―customer―

satisfaction―and―create―new―markets.

I n t r o d u c i n g ―A l p i n e ― t o ― t h e ― m a s s e s

Participation in motor shows in various countries

We participate in motor shows and electronics exhibitions all over the world,

including Japan, North America, Europe, China and Asia. Visitors experience the

latest products and services and Alpine’s technology, and it allows us to obtain

unfiltered feedback from customers and gives us the opportunity to interact with

automobile manufacturers.

We created the new market of model-specific car navigation systems based on our pursuit of the customer’s perspective. We are increasing car life satisfaction by delivering car navigation systems customized for the customer’s specific model of car along with rear seat monitors and rear view cameras. We work quickly to support popular new models and have received support from many customers.

Proposing model-specific car navigation systems

Example Activity

Manufacturing

Material Procurement

R&D

Marketing

Quality

Services


Alpine’s Business Activities | Research and D

evelopment

Human Machine Interface Comfortable communication between humansand in-vehicle devices

• Driver friendliness • Big data utilization • Personalized HMI with server connection • In-vehicle high image quality display

Evaluation Integration of field evaluations and simulations • Knowledge on in-vehicle device evaluation• Driver distraction assessment • High-confidence simulation

Acoustic Car acoustic specialists• In-vehicle sound quality • Sound processing technology• Multiple information/sound tracks• Operation/action sound inside/outside of vehicle

Digital Media & Mechatronics Market-leading media/mechanism originality• Integrating advanced media with in-vehicle devices• Advanced introduction of cloud service to in-vehicle devices• High quality mobile mechanism • Cost conscious mechanism

System Integration Multifunctional large-scale products• Establishing safety culture • Improving quality management• Responding to demand for high quality per customer/market• Coordinating in-vehicle devices with vehicle itself • Catchup for V2X

Research and DevelopmentResearch―and―DevelopmentAlpine’s ―Business ―Act ivi t ies

Cultivating―core―technologies―and―producing innovation in anticipation of the―next-generation―cockpitWe―are―working―to―strengthen―the―technical―foundation―that―supports―our―high-

performance―and―highly―reliable―products―and―establish―new―technologies― that―

will―cultivate―new―markets.――We―are―further―cultivating―our―core―technologies―and―

striving―for―innovation―of―on-board―information―equipment/systems.

D r i v i n g ― s u p p o r t ― s y s t e m ― w i t h ― r e a r ― c a m e r a

Technical―domains―to―lead―the―market:―H E A D S

Supporting safe and smart driving

Alpine’s R&D

We are working on development of driving support systems based on rear

cameras, which are becoming increasingly popular. We propose several features

for different driving scenarios, including BSI (Blind Spot Information) to assist with

lane changes on highways by alerting the driver of the presence of vehicles in their

blind spot, LDW (Lane Departure Warning) to alert the driver to deviation from their

lane and CTM (Cross Traffic Monitor) to assist with reverse parking in parking lots.

Alpine has established technical domains in which to create advanced products and is promoting research and development in those areas.

Taking advantage of our proprietary acoustic design technology, we developed a light weight amplifier that achieves a total weight reduction of 40% and a compact design that takes up 50% less space than previous models. Not only does it have minimal effect on fuel consumption, but it also features specs befitting of a premium amp, including noise suppression achieved through the adoption of a symmetrical layout.

Achieving both compactness/power saving and high performance

Example Activity


Alpine’s Business Activities | Material Procurem

ent / Manufacturing

ManufacturingMaterial ProcurementManufacturingAlpine’s ―business ―Act ivi t ies

Material―ProcurementAlpine’s ―Business ―Act ivi t ies

Pursuing―high-quality―manufacturing―while―sticking―close―to―local―marketsBased―on―our―basic―policy―of― "Made― In―Market,"―Alpine―has―built― a―global―

production―network―consisting―of― the― five― regions―of― Japan,―North―America,―

Europe,―China―and―Asia.―Our―product―supply―system―reflects―changes―in―market―

needs―and―demand―in―each―region―in―a―timely―manner.

Creating―a―new―system―linking―people―and―information

Evolving production network

In order to achieve manufacturing of higher quality and efficiency, Alpine is

making efforts to further upgrade our production system. We are promoting the

introduction of a production management system that enables more strategic and

quicker management decisions while working to strengthen human resources

development at each facility and global group collaboration in the aim of

improving our competitiveness.

Partnering―with―suppliers―all―over―the―world―in―pursuit―of―high―value-added―partsWe―seek―to―ensure―the―reliability―required―of―our―products―and―create―never-before-

seen―features.―Alpine―engages―in―global―procurement―activities―while―emphasizing―

proper―quality―and―cost―as―well―as―the―global―environment―and―social―responsibility.

Creating―new―products―of―optimal―quality―and―cost

Advanced development purchasing activities

When developing new products that use new parts, our Purchasing Division,

which is in charge of parts procurement, and our Engineering Division, which

is in charge of design, coordinate their efforts. Putting together their respective

knowledge and expertise, parts that offer a balance between quality and cost are

selected to achieve the required functionality efficiently and with high reliability.

Alp ine works t o s t r eng then our partnerships with suppliers. We hold business condition briefing sessions twice a year in Japan and annually in China, North America and Europe. Top management explains the status of production and sales along with our purchasing policy in an effort to build relationships of trust.

Holding business condition briefing sessions for suppliers in each region

By shrinking the packaging of OEM display products, we were able to increase the number of products per carton to 12 from 5, thereby increasing the volume per shipment. These packaging improvements were achieved with the cooperation of our customers related to changes to carton sizes and packing material.

Reducing environmental impact throughout the supply chain

Example Activity

Example Activity


Alpine’s Business Activities | Quality / Services

ServicesQualityServicesAlpine’s ―Business ―Act ivi t ies

QualityAlpine’s ―business ―Act ivi t ies

Coming―together―as―a―company,―sticking―close―to―the―customer―and―working―to―improve―service―from―various―anglesAlpine―products―are―delivered― to―end―users― through―various―distributors―and―

foreign―and―domestic―automobile―manufacturers.―We―work―continually―to―improve―

the―logistics―of―getting―our―products―from―our―production―plants―into―the―hands―of―

customers―as―well―as―after-sales―support.

C o m p r e h e n s i v e ― a s s e s s m e n t ― o f ― s u p p l y ― c h a i n

Customer satisfaction surveys

Alpine surveys customer satisfaction with respect to various elements related to

our supply chain, including quality, system supply capabilities, business speed

and after-sales service. Measures to address issues that are revealed by the

results of research are reflected in the medium-term plans of our divisions, and

we regularly monitor progress on such efforts.

We―deliver―highly―reliable―products―based―on―an―evaluation―system―developed―specifically―for―in-vehicle―environments.Field―tests―are―conducted―at―our―Evaluation―Center―and―test―courses―to―ensure―stable―

operation―and―ease―of―use―under―harsh―conditions,―such―as―vibrations―and―impact―

during―driving,―sunshine―and―temperature―changes.―Our―quality―evaluation―system―is―

established―based―on―the―precious―data―from―those―tests―and―high―precision―analyses.

For―appealing―quality―that―goes―beyond―customer―expectations

Our own definition of quality

Alpine defines the ideal product quality as “appealing quality.” Appealing quality refers not

simply to the superiority or inferiority of product functions but to the characteristics of a product

that allow customers to experience a thrill that surpasses satisfaction by providing value to

their car life that exceeds their expectations. Alpine is committed to increasing the number of

Alpine fans among our customers by delivering products that feature appealing quality.

An Important Quality Characteristic Exhibit Room has been set up at the head office in Iwaki displaying a description of the incidents causing past quality problems, the actual items and feedback from the inconvenienced customer in order to prevent past quality problems from becoming an accepted occurrence. We have made training utilizing these exhibits mandatory for all employees. In 2015, we conducted on-site exhibitions at group companies in charge of production and design and expanded the scope of training.

At our information center, we pursue customer satisfaction through interactive communication. Through the provision of new product and support information, we endeavor to continuously build relationships with registered customers. Additionally, we listen to customer requests, complaints and other opinions and provide feedback to the Product Planning Division as part of our efforts to further improve the appeal of our products.

Sharing serious quality problems group-wide

Deepening communication with customers

Example Activity

Example Activity


CSR

Activity Highlights 2014

CSR―Activity―Highlights―2014In―fiscal―2014,―Alpine―established―the―materiality―of―CSR―for―the―first―time―

in―aims―of―achieving―further―growth―while―meeting―the―expectations―of―our―stakeholders.

We―are―promoting―CSR―management―group-wide―with―a―focus―on―the―materiality―identified.

Identifying―materiality

Provision―of―products―and―services―to―solve―social―problems

Sustainable―supply―chain―management

To identify materiality, we conducted an assessment from the standpoints of “priority of stakeholder concerns” and “importance for Alpine” referring to ISO 26000, the international standard for corporate social responsibility, and various other standards. We reflected the opinions from the

internal CSR Committee and had it reviewed by experts. The materiality identified will be reflected in the medium-term CSR plan as a priority theme, and we will work to strengthen CSR management while managing progress on efforts and engaging in periodic reviews.

UpdatingCSR plan

Interviewingexperts

Identifyingmateriality from

Alpine’s perspective

Identifyingmateriality from stakeholders'

perspective

Process of identifying materiality

Materiality matrix

Sorting issues

● Protection of natural environment

● Establishment of governing structure

● Responsible political involvement

*GHG: Green House Gases

● Mitigation of climate change impact (reduction of GHG*)

● Use of renewable resources

● Prevention of pollution

● Provision of products and services to solve social problems● Sustainable supply chain management

● Participation of diverse human resources (diversity)● Prevention of corruption

● Customer satisfaction and protection of privacy

● Involvement with local community

Veryhigh

Veryhigh

Expe

ctat

ions

from

sta

keho

lder

s

Priority for Alpine

Top priority

High

Step1

Step2

Step3

Step4

Step5

Sort throughstakeholder concerns based on ISO 26000

and various standards

Assess priority of stakeholder concerns

Assess impact of stakeholder concerns

on Alpine andidentify priority

Have experts review priority identified

in Step 3

Update medium-term CSR plan based on

priority identifiedin Steps 3 and 4

● Ensuring of appropriate labor conditions and workplace environment

● Dialog with employees and human resources development

● Ensuring of accountability and transparency

● Compliance

Alpine has commercialized an energy monitor for hybrid vehicles. Distance to empty, full trip average fuel consumption and other data are displayed on a large-screen display to support Earth-friendly driving. We also aim to improve the fuel efficiency of cars through our products, and this includes making all our car navigation systems compatible with idle reduction features.

We have prepared "Alpine’s PurchasingPolicies" (based on the "Supply Chain CSR Promotion Guidelines" established by the Japan Electronics and Information Technology Industries Association [JEITA]) and work together with suppliers to engage in responsible procurement activities. In fiscal 2014, we positioned information security, environmental load reduction and handling of conflict minerals as priority themes as we worked to solve problems.

Development―of―products―to―support―eco-conscious driving

Promoting―supply-chain-wide―CSR

Alpine’s Purchasing Policies

Using the LCA (Life Cycle Assessment) method, we clarify the environmental load of our products and work to reduce that load. For example, when it comes to car navigation systems, we have learned that products’ power consumption and weight cause the bulk of CO2 emissions during use. As such, we are working to reduce the mass of our products (through both reduction of parts and lightening), miniaturize them and reduce their electrical consumption.

Forces in the Democratic Republic of the Congo and neighboring countries use inhumane activity such as forced or child labor to mine minerals used for rare metals, and transactions involving these minerals are used to fund their activities, creating an international problem.

The Dodd-Frank Wall Street Reform and Consumer Protection Act passed in the United States in 2010 defines these minerals as "conflict minerals" (in the law, conflict minerals include tantalum, tin, gold, tungsten and other minerals specified by the US Secretary of State), and companies listed on US stock exchanges are required to disclose information on the use of conflict minerals in their products. From the standpoint of respecting human rights, Alpine understands and agrees with the intent of the law and partners with group companies, suppliers and JEITA to promote efforts aimed at preventing the use of conflict minerals.

Consideration―of―environmental―load―throughout―entire―life―cycle

Conflict―Minerals

Energy monitor screen

Opennessand

FairnessLegal

Compliance

EnvironmentalFriendliness

Partnership

Total Emission: 48,021 (g)

CO2 Emissions of PX-8 Car Navigation System by Life Stage

Manufactureof material

Assemblyof parts

Shipment

23,812

5,419

Use Waste

13,372

4,784609

29,231

0

5,000

10,000

15,000

20,000

25,000

30,000

24

■ Weight Origin ■ Electric Origin

(g)


CSR

Activity Highlights 2014

Business ― Opera t ions―that―Consider― the―Local―Religion― and― Culture

At our Dubai Office, we are working to create a working environment that respects the traditions of Islam. In keeping with the Islamic calendar, the office is closed on Fridays and Saturdays. Also, during the month of Ramadan, when Muslims fast from sun up to sun down, we shorten the working hours. Moreover, during this time, we have established a rule of not eating or drinking in front of Muslim employees.

ALPINE ELECTRONICS OF MIDDLE EAST, FZCOSales & Marketing Manager

Syed Khaja Raziuddin

Customer―satisfaction―and―protection―of―privacy Mitigation―of―climate―change―impact

Involvement―with―local―community Participation―of―diverse―human―resources―(diversity)

Alpine products in vehicles are subjected to harsh conditions, so they are tested under conditions that are even more severe before they are delivered to the market.

In our reliability and evaluation centers and test courses, the robustness of our products is tested under various strict evaluation criteria, testing glare caused by sunlight, durability against sand and dust, as well as temperature, humidity, vibration, shock, radio wave, and sound tests.

We participate in regional next-generation training all over the world where our business places are located. In Japan, our Alpine Manufacturing Onomachi Plant actively carries out a hands-on manufacturing class at local elementary and junior high schools. In Thailand, we continue to engage in exchanges with elementary schools in the Ayutthaya district, which was affected by massive flooding in 2011, through open classes and other efforts taking advantage of the teaching materials we have donated.

We consider having employees from various different backgrounds and with unique personalities a strength of our company and place an emphasis on diversity. As such, we hold a Human Resource Development Conference twice a year where we discuss the training policy for young human resources, appropriate personnel rotations, training content and other topics to further grow and utilize the individuality of each of our employees.

Pursuit―of―reliable―products

Next-generation―training―support Leveraging―individuality

Alpine seeks to create products and services from the customer’s perspective. The opinions received at our customer support desk are shared within the company (without revealing personal information) and serve as the basis for product development, quality imp r o v e m e n t s a n d management decisions. Additionally, we engage in follow-up with those who have used our product repair and other services to seek out the customer’s perspective.

Alpine Giken won the grand prize in the office category*1, and Alpine Precision won the grand prize in the manufacturing category of the Fukushima Protocol Global Warming Prevention Project, organized by the prefecture of Fukushima*2. Additionally, in 2014, we began to hold communications and exchanges with other businesses throughout the prefecture that were honored under the Fukushima Protocol, as well as elementary and junior high schools, in order to expand the scope of our local energy-saving activities.

At our head office in Iwaki, we are working on energy conservation through the utilization of waste heat. Our environmental lab becomes hot due to the many pieces of large testing equipment, so it has to be cooled with air conditioning even in the winter. By bringing in cold outside air, we are able to stop the air conditioning in the environmental lab, and we use the heat generated by the equipment to heat the lobby. This reduces the amount of power consumption by air conditioning.

We invited world-renowned trumpeter Terumasa Hino, who shares Alpine’s desire to assist in Iwaki City’s recovery from the massive damage of the Great East Japan Earthquake, and held a The Five Stripes concert (February 2015). The Five Stripes is Alpine’s big band, led by company president Toru Usami. Around 100 local students came to the concert and experienced the excitement of music.

Customer-focused―business―activitiesRecognition―of―Environmental―Activities―by―Local―GovernmentUtilization―of―waste―heat

Reconstruction―support―through―power―of―music

Reliability evaluation centerEnvironmental Education Activities at the Fukushima Protocol Prize-Winning School

*1 Alpine Giken has won the grand prize five years in a row. *2 Out of a total of 1,856 organizations

Lobby at Iwaki office

Interaction with elementary school students in Thailand

In-store communication with customers

With the students who were invited

Distribution ofEmployees

UnitedStates

14%Europe14%

Asia 3%

China38%

Japan31%


Corporate GovernanceTo―become―a―company―trusted―by―customers―and―society.

Alpine―is―thorough―with―compliance―across―the―group,―observing―laws,―internal―regulations,―social―norms―and―ethics.

ISO―26000―and―AlpineAlpine―uses―ISO―26000―as―our―guideline―for―working―on―continuous―improvements―to―our―CSR―activities―from―a―global―perspective.

The―following―is―a―list―of―efforts―that―were―newly―implemented―or―expanded―in―2014―and―how―they―relate―to―ISO―26000.

Corporate G

overnance / ISO 26000 and Alpine

Alpine appoints a Board of Directors that oversees and supervises managerial decisions and performance of duties. Each director is assigned with a specific corporate function. By incorporating an organization with clear managerial responsibilities, optimal and efficient progression of duties is assured. Alpine has also established an internal auditing structure, and empowers the Board of Auditors. The board assures clarity and transparency via monitoring from managerial, accounting, and legal perspectives.

Corporate―Governance―Structure

The basic rules that employees are to observe in order to act fairly and appropriately as members of society have been laid out in the Alpine Ethical and Legal Compliance Policy, which has been rolled out to all companies in the group.

Regulations reflecting the laws of each country have been added at each location around the world to implement guidelines that bear closer relevance to daily actions. Additionally, internal media such as e-Learning and Legal News is utilized to actively address issues such as spreading specific legal knowledge and improving individual awareness.

Compliance―Structure

At Alpine, the legal affairs departments at each corporate center in Japan, the United States, Europe and China carry out compliance education according to regional characteristics.

Compliance―Education

Instruction

Account Auditor

President & CEO Internal Audit Office

Election/dismissal

Election/dismissal

Election/dismissal

Election/dismissal

Reporting Coordination

Reporting Reporting

Audit Reporting

General Meeting of Shareholders

Legal Division

Board of Directors(12 Directors)

External Director (1)

Internal Directors (11)

Board of Auditors(4 Auditors)

External Auditors (2)

Internal Auditors (2)

CSR Committee

Internal ControlSubcommittee

RC Committee

Risk ManagementSubcommittee

Information ManagementSubcommittee

Affiliates (Domestic/Overseas)

Labor Environment andSociety Subcommittee

Supply Chain Subcommittee

Environment ManagementSubcommittee

Consumer Subcommittee

Eth

ics

Hot

line

Self Checking by Each Division

Whistle-blowing

Reporting

Coordination

Whistle-blowing

Reporting

Instruction

Coordination

Adm

inis

trativ

e D

ivis

ion

Qua

lity A

ssur

ance

Divi

sion

Pro

duct

ion

Div

isio

n

Tech

nolo

gy D

ivis

ion

Sal

es D

ivis

ion

Japan

Ethics education for engineers was carried out for new recruits, contract management, antitrust law and human rights/harassment education for new managers and case studies by area (antitrust law, bribery, etc.) for employees transferred overseas, while antitrust law education was carried out for the sales department.

USA

Educational activities were carried out with respect to antitrust law, risk management for open source software, driver distraction regulations and human rights/harassment.

Europe

Seminars were held for employees dealing with antitrust law, British anti-bribery law, risk management for open source software, international contract management, etc.

China

Educational activities were carried out with respect to basic contract knowledge, antitrust law, contract risk, etc.

South Korea

Preventive education was carried out on sexual harassment in the workplace.

Corporate Governance Structure (as of June 2015)

Alpine Ethical Guidelines (Alpine’s 10 Commandments)

Fiscal 2014 compliance education

Person

Personal Information Disclosure of personal information is prohibited.

Ban on Discrimination

Violent force and language, sexualharassment, and discrimination areprohibited.

Object

Product Safety Give due consideration to the safetyand quality of products.

EnvironmentalConcern

Give due consideration to the natural environment.

Property

Corporate Property Personal use of corporate property is prohibited.

Intellectual Property Violation of intellectual property ofother organizations is prohibited.

Information

Corporate Secret Personal use and disclosure ofcorporate secrets is prohibited.

Ban on InsiderTrading

Dealing of the company’s stock bythe employees before disclosure ofcorporate information is prohibited.

Trading

Fair Trade Comply with antitrust legislation and every law and rule.

Donations andReception

Receiving donations and receptionbeyond a reasonable extent isprohibited.

Major Efforts New/Expanded Efforts of Fiscal 2014 Introducedin This Report

Relevant Page Related Items Published on Website

OrganizationalControl

Preparation of corporate governance structure

Strengthening of corporate governance through introduction of outside director system 30

-Corporate governance structure-Internal control system-CSR promotion organization

Human Rights Respect for human rights

Establishment of work regulations that take local religion and culture into account 29

-Utilization of diverse human resources

-Human rights-conscious procurement

-Alpine ethical guidelines(Alpine’s 10 Commandments)

Holding of seminars to improve cross-cultural communication skills -

Conducting of surveys to eliminate use of conflict minerals in collaboration with suppliers and JEITA 27

Labor Practices

Utilization of diverse human resources

Continued implementation of executive candidate development program at main corporate centers -

-Child rearing/care giving support-Emphasis of work-life balance-Employee company satisfaction surveys

-Preparation of training environment-Employee training-Personal development by Labor Committee

-Workplace safety management-Health management-Mental health management-Safety and security following Great East Japan Earthquake

Holding of Women’s Conference for promoting active roles of female employees -

Creation of pleasant workingenvironments

Construction of on-premises cafeteria and renewal of cafeteria services -

Promotion of employee healthAlleviation of uneasiness on the part of employees and their families concerning radiation exposure through utilization of whole body counters

-

Active communication between labor and management

Holding of round tables for the purpose of promoting mutual understanding between president, directors and employees

-

Environment

Development of environmentally friendly products

Commercialization of energy monitors for hybrid vehicles 27

-Framework for environmental activities

-Environmentally friendly production-Environmentally friendly distribution-Environmentally friendly workplaces-Community environmental activities-Global environment-conscious procurement

-Environmental data

Consideration of environmental load throughout entire life cycle 27

Environmentally friendlydistribution

Improvement of packaging materials/method and distribution route 23

Green procurement Requests to trading partners for consideration of environment and surveys on present conditions -

Environmentally friendlyworkplaces

Reduction of power consumption through utilization of waste heat 29

Employee environmental activities

Expansion of all-hands environmental activities and recognition by local authorities 29

Fair BusinessPractices

Compliance Education Compliance education at main manufacturing bases in Japan and other countries tailored to local characteristics 30

-Compliance structure-Alpine ethical guidelines(Alpine’s 10 Commandments)

-Risk management efforts-Disaster risk management-Strengthening of information security measures

-Alpine’s Purchasing Policies

Thorough information security

Preparation of system for handling information security incidents -

Information ethics education for all workers on Alpine premises -

Thoroughly Fair Competition Revision of agreements by customers and suppliers in emerging countries -

Promotion of CSR throughout supply chain

Business condition report meeting for suppliers at main manufacturing bases in Japan and other countries 22

Improvement of level of information management throughout supply chain -

Consumer Issues

Interactive communication with customers

Holding of technology exhibitions and shows in various countries 19

-Manufacturing from customer perspective

-Customer support desk activities-Communication with customers-Precepts of quality improvement activities

-Global quality improvement activities

-Achievement of reliable quality-Pursuit of inspirational quality-Environmentally friendly production

Provision of high-quality products and services

Exhibition of serious quality problems from the past and implementation of training utilizing it 24

Enhancement of product quality evaluations through construction of new evaluation center in Beijing, China -

Thorough after-sales service

Provision of on-the-spot service when customers visit our company -

Development of system to distribute support information to users that complete customer registration 25

Communityparticipation and

development

Enhancement of community involvement

Expansion of manufacturing classes for students at manufacturing bases 28 -Development of next-generation

human resources-Educational support charity-Workplace visits-Exchange/dialog with community-Participation in establishment of NPO

-Clean-up activities

Support of areas affected by Great East Japan Earthquake through provision of supplies -

Holding of charity concert to support reconstruction through power of music 28


Printed in June 2015

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