Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Main factor
Overall
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)

Factors
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)

Awards

-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 (Forecast)	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)

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)

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