Murata Manufacturing Business Report FY2008

Business Highlights

Financial overview ( in millions of JPY )
- FY2008 FY2007 Rate of
change (%)
Main factor
Sales 523,946 631,655 (17.1) Demand declined in the second half of the year because the Company's customers made inventory adjustments, curtailing their production volumes. As a result, the number of orders and volume of turnover decreased year-on-year.
(16,287) 115,752 - Operating income decreased due to a decline in both the operating rate and product selling prices; an increase in depreciation costs; and the negative effects of foreign currency translation.
3,588 77,413 (95.4) With the tax system revision in 2009, a Foreign Dividend Exclusion System was introduced. As a result of the Company's reversing the deferred tax liability posted in the previous fiscal year, net income decreased.
Car Electronics Market
Sales 54,000 67,400 (19.9) Sales of products for car audio systems, sonar systems, and remote keyless entry (RKE) systems decreased.

- Forecast for the 2009 fiscal year ending March 2010 Results for the 2008 fiscal year (which ended March 2009)
Rate of change Rate of change
Sales estimates by product
Capacitors Around 12% (27.6%)
Piezoelectric products Around 3% (17.7%)
High-frequency devices Around 3% 4.6%
Modules Around 3% (17.9%)
Other products Around 5% (12.8%)
Sales estimates by use
Car Electronics Market Around 7% (19.9%)



R&D Expense ( in millions of JPY )
- FY2008 FY2007 FY2006
Overall 46,832 42,281 38,670

R&D Structure

Facility Location Overview
Yasu Plant Yasu,
Shiga Pref.
-Research and development of industrial engineering, electronic materials and thin-film process technology
Yokohama Technical Center Yokohama,
Kanagawa Pref.
-Development of information communications and function module products
Development building at headquarters Nagaokakyo,
Kyoto Pref.
-Development of wireless modules, etc.
-The third R&D facility following Yasu and Yokohama completed in October 2007.
Yokaichi Plant Higashi-omi,
Shiga Pref.
-Development of materials process
Research Center for Next Generation Technology Kyoto,
Kyoto Pref.
-Research and development of new technology and new business fields

R&D activities (Car electronics)

-The Company developed lithium ion secondary batteries for HEVs.
-The Company developed a power electronics capacitor. The Company started the development of this product by developing its proprietary ceramics material. This capacitor, which is capable of passing a large current in a high temperature environment, is mounted on an inverter system that controls motors in hybrid vehicles.
-The Company developed a pressure sensor for use on tire pressure monitoring systems. U.S. regulations require that such tire pressure monitoring systems be installed on all tires.
-The Company developed an ultrasonic sensor for use on rear-detection sonar systems, which can detect obstacles when the car travels in reverse.
-Together with Nissan Motor Co., the Company jointly developed an ionizer that eliminates electrostatic discharges when people get in and out of cars. These static electric charges are very uncomfortable, so the ionizer eliminates static electricity by generating both plus and minus ions and neutralizing the electricity in charged object with ions having reverse polarities.

Investment Activities

Capital Expenditure ( in millions of JPY )
- FY2008 FY2007 FY2006
Overall 65,427 125,557 99,651

Capital investment plans
Investment plan Planned
amount of investment
(million yen)
From To
The Company
Yasu Plant
(Yasu, Shiga Pref.)
Installing R&D equipment and production equipment to manufacture semifinished products 5,500 Apr., 2009 Mar., 2010
The Company
Yokaichi Plant
Shiga Pref.)
Installing production equipment to manufacture raw materials 1,300 Apr., 2009 Mar., 2010
Fukui Murata Manufacturing Co., Ltd.
Fukui Pref.)
Installing production equipment to manufacture capacitors 2,300 Apr., 2009 Mar., 2010
Komatsu Murata Manufacturing Co., Ltd.
Ishikawa Pref.)
Installing production equipment to manufacture high frequency devices 1,400 Apr., 2009 Mar., 2010
Toyama Murata Manufacturing Co., Ltd.
Toyama Pref.)
Installing production equipment to manufacture piezoelectric products 1,100 Apr., 2009 Mar., 2010