Murata Manufacturing Co., Ltd. Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of
Change (%)
Main factor
Sales 846,716 681,021 24.3 -Sales increased because of the Company’s focus on growing markets, and favorable currency translation.
Operating income 125,891 58,636 114.7 -Operating income increased as a result of profits from high operating capacity and favorable currency translation due to the weak yen, in spite of higher fixed costs incurred for boosting production capacity and lower product selling prices reducing profits.
Net income 93,191 42,386 119.9 -
Automotive Electronics
Sales 120,200 102,000 17.8 1)

1) Sales of Car Electronics
-Sales of onboard MLCCs (Multilayer Ceramic Capacitors) increased in line with the growth of onboard electronics.
-Sales of MEMSs (Micro Electro Mechanical Systems) for use in safety devices increased.
-Sales of electric power supplies for car-audio systems increased.

New consolidated subsidiary

-The Company announced that it completed a tender offer bid (TOB) for common shares of Toko, Inc. as of March 18, 2014. Through the TOB, Murata has raised its voting share of Toko to 66.20% from 15.88%. Toko will become Murata's consolidated subsidiary effective March 26, 2014. (From a press release on March 19, 2014)


-In July 2013, the Company received the award in the category of Electronics from Bosch Group.

Outlook for FY ending Mar. 31, 2015

(in millions of JPY)
  FY ended Mar. 31, 2015
FY ended Mar. 31, 2014
(Actual Results)
Rate of Change
Sales 920,000 846,716 8.7
Operating income 144,000 125,891 14.4
Net income 102,000 93,191 9.5

-Sales for Automotive electronics is estimated to increase by 14% year-on-year.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income, etc.)


R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Components 26,365 21,100 19,915
Modules 14,780 12,379 8,984
Others 26 4 47
Headquarters 13,478 15,283 12,032
Total 54,649 48,766 40,978

 -R&D Expenditure for FY ending March 2015 is planned to be JPY 60,000 million.

R&D Activities

-The Company, Renesas Electronics Corporation, and Ubiquitous Corporation announced that they have signed an agreement to collaborate on the development of high-speed network connection technologies for use in in-vehicle infotainment (IVI) systems. By integrating Renesas' "R-Car" system-on-chip (SoC) for automobiles, Murata's Wi-Fi module, which has the No.1 share of the global market, and Ubiquitous' high-speed activation solution and wireless communication software technology, the three companies aim to develop a new IVI platform supporting the latest standard. This platform solution is expected to achieve quick activation of the infotainment system and to offer a comfortable network environment in the car. (From an article in the Nikkan Jidosha Shimbun on September 26, 2013)

Products Development

Hybrid crystal Timing device for Automotive applications
-The Company announced that it has developed a hybrid crystal timing device for automotive applications. The product was jointly developed with Tokyo Denpa Co., Ltd., which was converted into a wholly owned subsidiary of Murata on August 1. Adoption of Murata's proprietary packaging technology led to a 37% reduction in product size compared with existing hybrid crystal units. The new device was designed based on Murata's Ceralock ceramic resonator packages which are widely used for automotive electronics applications. Crystal elements were added inside the package. The Company expects to use the advanced product on electronic control units for engines, brakes and electric power steering systems. (From an article in the Nikkan Jidosha Shimbun on October 5, 2013)

Investment Activities

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012

Strengthening and streamlining production facilities

47,597 55,770 49,331

Expanding R&D facilities

8,184 7,337 6,527

Acquiring land and buildings

2,757 5,135 3,684
Total 68,197 77,662 68,445
-Capital expenditure for FY ending Mar. 31, 2015 is estimated to be JPY 80,000 million.

Planned Capital Investments

(As of Mar. 31, 2014)
Location Targets of investments Planned
amount of investment
(million yen)
From To
Fukui Murata Manufacturing Co., Ltd. Fukui Pref.
Facilities for manufacturing components 9,000 Apr. 2014 Mar. 2015
Izumo Murata
Shimane Pref.
Facilities for manufacturing components 9,000 Apr. 2014 Mar. 2015
Toyama Murata Manufacturing Co., Ltd. Toyama Pref.
Facilities for manufacturing components and modules 8,000 Apr. 2014 Mar. 2015
Yasu Plant Shiga Pref.
Facilities for producing semi-products and conducting R&D activities 6,000 Apr. 2014 Mar. 2015
Shenzhen Murata Technology Co., Ltd. Guangdong Province
Facilities for manufacturing modules
6,000 Apr. 2014 Mar. 2015