Financial overview

( in millions of JPY )

-	FY2008	FY2007	Rate of change (%)	Main factor
Overall
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.
Operating income	(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.
Net income	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.

Capital Expenditure

( in millions of JPY )

-	FY2008	FY2007	FY2006
Overall	65,427	125,557	99,651

Capital investment plans

Facility (Location)	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 (Higashi-omi, Shiga Pref.)	Installing production equipment to manufacture raw materials	1,300	Apr., 2009	Mar., 2010
Fukui Murata Manufacturing Co., Ltd. (Echizen, Fukui Pref.)	Installing production equipment to manufacture capacitors	2,300	Apr., 2009	Mar., 2010
Komatsu Murata Manufacturing Co., Ltd. (Komatsu, Ishikawa Pref.)	Installing production equipment to manufacture high frequency devices	1,400	Apr., 2009	Mar., 2010
Toyama Murata Manufacturing Co., Ltd. (Toyama, Toyama Pref.)	Installing production equipment to manufacture piezoelectric products	1,100	Apr., 2009	Mar., 2010