Recognition of an extraordinary loss associated with a product quality issue
ALPS ALPINE CO.,LTD. (the Company)
Certain production lots of torque sensors for automotive electric power steering (vehicles equipped with the affected products)
Deficiencies in the manufacturing process at the supplier entrusted with manufacturing components used in the affected products
¥8,889 million (extraordinary loss recorded as a product warranty loss)
The consolidated accounting period for the second quarter of the fiscal year ending March 2027
The extraordinary loss was reflected in the interim consolidated financial statements, but the full-year consolidated earnings forecast for the fiscal year ending March 2027 remains unchanged. Insurance proceeds receivable and recoveries from the manufacturing supplier are not reflected.
The amount recoverable from the manufacturing supplier has not been determined (amount: Not disclosed).
Company response
The Company's investigation (details of the investigation structure are Not disclosed)
We will further strengthen process certification, quality control and audit systems within the Company and at manufacturing suppliers, and take thorough measures to prevent recurrence.
Related procedures
Market action (recall)
We will appropriately address customers and other relevant parties. We will proceed with discussions with insurers and claims for the manufacturing supplier to bear the costs, and strengthen process certification, quality control and audit systems.
If it becomes necessary to revise the full-year consolidated earnings forecast, the Company will disclose the revision promptly.
| Item | Details |
|---|---|
| Event name | Recognition of an extraordinary loss associated with a product quality issue |
| Date of occurrence | 30 October 2026 (the date on which the Board of Directors resolved to enter into the agreement for the Company to bear the costs) |
| Subject Entity | ALPS ALPINE CO.,LTD. (the Company) |
| Target Locations / Products | Certain production lots of torque sensors for automotive electric power steering (vehicles equipped with the affected products) |
| Cause | Deficiencies in the manufacturing process at the supplier entrusted with manufacturing components used in the affected products |
| Amount of Impact on Business Performance | ¥8,889 million (extraordinary loss recorded as a product warranty loss) |
| Accounting period in which recognized | The consolidated accounting period for the second quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | The extraordinary loss was reflected in the interim consolidated financial statements, but the full-year consolidated earnings forecast for the fiscal year ending March 2027 remains unchanged. Insurance proceeds receivable and recoveries from the manufacturing supplier are not reflected. |
| Type of litigation or proceeding | Market action (recall) |
| Amount of receivables at risk of non-collection or delayed collection | The amount recoverable from the manufacturing supplier has not been determined (amount: Not disclosed). |
| Investigation structure | The Company's investigation (details of the investigation structure are Not disclosed) |
| Measures to prevent recurrence | We will further strengthen process certification, quality control and audit systems within the Company and at manufacturing suppliers, and take thorough measures to prevent recurrence. |
| Outlook | We will appropriately address customers and other relevant parties. We will proceed with discussions with insurers and claims for the manufacturing supplier to bear the costs, and strengthen process certification, quality control and audit systems. |
| Planned follow-up disclosure | If it becomes necessary to revise the full-year consolidated earnings forecast, the Company will disclose the revision promptly. |
Items this document does not state (11)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.A quality issue was identified in certain production lots, and recalls were conducted for vehicles equipped with the affected products. Under its contracts with customers, the Company decided to bear part of the costs associated with the market action and related expenses.