Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of change (%)	Main factor
Overall
Sales	617,954	530,819	16.4	1)
Operating income	77,485	26,730	189.9	-
Net income	53,492	24,757	116.1	-
Car Electronics Products
Sales	79,710	66,514	19.8	2)

Factors
1)
-Sales in this sector were 617,954 million yen, increasing 16.4% year-on-year supported by the expansion seen in the Company’s mainline product markets such as cellular phones, computers, and related devices; and the significant growth experienced in the car electronics market. This was in spite of little movement in sales of products used in the equipment market.
2)
-The growing trend of using electronics and electronic devices supported the car electronics segment also, which experienced huge increases because of the increasing market penetration of hybrid cars.
-There was in increase in all uses of piezoelectric devices, including ceramic vibrators such as those designed for car electronics that constitute a major segment of the Company’s business. In the field of piezoelectric sensors, tremendous growth was seen in sensors designed for collision detection sensors in TPMSs and in ultrasonic sensors used in back sonars.

Contracts

-The Company has been awarded a contract to supply ceramic condensers for use in electric vehicles for the first time. As early as by the end of this year, the company will start supplying these ceramic condensers to Japanese automakers that are mass producing electric vehicles. These products will be used in auxiliary components such as electric compressors. Although ceramic condensers are made one twentieth to thirtieth smaller in size compared with conventional electrolytic condensers, they offer the same functions as electrolytic products. The downsizing contributes to reducing the size and weight of the whole compressor unit. Another advantage of ceramic condensers is their ability to control current more accurately. Practical application of the technology has been delayed because of its relatively high cost, but the ceramic condenser has been finally chosen for its significant contribution to product performance. (From an article in the Nikkan Jidosha Shimbun on October. 14, 2010)

Earnings forecast for the fiscal year 2011 (ending March 2012)

	Forecast for the 2010 fiscal year ending March 2012	Results for the 2009 fiscal year ending March 2011
	Rate of change	Rate of change
Sales estimates by product
Overall	5%	16.4% up
Capacitors	Approximately 8% up	23.8% up
Piezoelectric products	Approximately 4% down	5.1% up
Other components	Approximately 10% up	19.1% up
Communication modules	Approximately 5% down	12.4% up
Power module and other products	Approximately 2%  down	13.2% up
Sales estimates by use
Car Electronics Market	Approximately 2% up	19.8% up

R&D Expense

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	39,778	41,649	46,832
Component Department	19,856	20,059	22,680
Module Department	8,507	8,682	9,350
Other departments	21	68	91
Headquarters	11,394	12,840	14,711

 

Products Development

Common Mode Choke Coil
-The Company has commercialized a common mode choke coil, which reduces noise generated in electric power supply lines in automobiles. The new choke coil, which can support electric devices having an electric current of up to 10 amperes, is suitable for use as a noise control device for electric and hybrid vehicle parts such as electric pumps, power steering systems, and electric brakes. Making it a surface-mounted device, which offers a significant space-saving feature, resulted in a 50 percent reduction in the total surface area, while increasing the rated current from 3 amps to 10 amps. The company is going to propose this common mode choke coil for application in motors of automotive components such as water pumps, fuel pumps, oil pumps, air conditioning systems, power window systems and windshield wipers. (From an article in the Nikkan Jidosha Shimbun on October. 26, 2010)

DC-DC converters in automotive ECUs
-The Company has created a series of chip monolithic ceramic capacitors which feature metal pins and which are designed to be used in automotive electronic devices, such as DC-DC converters in automotive ECUs. The elastic action of the metal pins helps to reduce the amount of stress generated by thermal and mechanical impact. By stacking a pair of capacitors one on top of the other, less space is required for mounting, and a high level of capacitance is achieved. (From a press release on May 16, 2011)

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	56,752	22,868	65,427

-The Company invested 43,995 million yen mainly to increase, upgrade, and rationalize its and its subsidiaries’ production facilities and equipment; 2,263 million yen to upgrade and increase R&D facilities; and 3,861 million yen to acquire land and buildings.

Capital Investment Plans

Facility (Location)	Targets of investments	Planned amount of investment (million yen)	From	To
Fukui Murata Manufacturing Co., Ltd. (Echizen, Fukui Pref., Japan)	Facilities for manufacturing components	12,000	April 2011	March 2012
Izumo Murata Manufacturing Co., Ltd. (Hikawa, Shimane Pref., Japan)	Facilities for manufacturing components	11,000	April 2011	March 2012
Wuxi Murata Electronics Co., Ltd. (Wuxi, Jiangsu, China)	Facilities for manufacturing components	10,000	April 2011	March 2012
Murata Manufacturing Co., Ltd. Yasu Plant (Yasu, Shiga Pref., Japan)	Facilities for manufacturing components	6,500	April 2011	March 2012
Kanazawa Murata Manufacturing Co., Ltd. (Hakusan, Ishikawa Pref., Japan)	Facilities for manufacturing components	5,000	April 2011	March 2012