Murata Manufacturing Co., Ltd. Business Report FY ended Mar. 2015

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 Rate of Change (%) Main factors
Overall
Sales 1,043,542 846,716 23.2 -Sales increased year-on-year due to a sales focus on growing markets and favorable currency translation due to the weak yen.
Operating income 214,535 125,891 70.4 -Operating income significantly increased year-on-year due to several positive factors such as an improved operating rate, cost-cutting initiatives, and favorable currency translation. These were offset by negative factors such as increased fixed costs in line with increasing production capacity, and lower product selling prices.
Net income 167,711 93,191 80.0 -
Automotive Electronics
Sales 144,300 120,200 20.0 1)


Factors
1) Sales of Products Used For Car Electronics
-Sales of MLCCs (Multilayer Ceramic Capacitors) for automotive applications increased in line with the increasing use of electronics in automobiles.
-Sales of MEMSs (Micro Electro Mechanical Systems) for use in vehicle safety systems increased.

New Product

-The Company released the PLT5BPH series of 2020-size (5.0 x 5.0 mm) wire-wound type power supply common mode choke coils for automotive applications. The new product has a maximum guaranteed operating temperature of 150 degrees Celsius and a maximum current rating of 5.6 A. It will be used for power lines of automotive applications such as ECUs, transmission control units, as well as car navigation and car audio systems. (From a press release on March 6, 2015)

Expansion of R&D and production bases

-The Company. announced that its development and manufacturing subsidiary for monolithic ceramic capacitors, Fukui Murata Manufacturing Co., Ltd., will break ground on a new manufacturing facility within the premises in December 2014. In total, JPY 10 billion will be invested in this project. With a floor area of 22,620 square meters, the new building is scheduled to be completed in September 2015. On average, approximately 1,000 monolithic ceramic capacitors are used in a single vehicle. (From a press release on September 10, 2014)

-The Company announced that its subsidiary, Sabae Murata Manufacturing Co., Ltd., located in Fukui Prefecture, Japan, has celebrated the completion of a new facility. With floor space of 1,834 square meters, the facility is equipped with prototyping and development support functions. Sabae Murata Manufacturing is engaged in manufacturing metal structural parts such as variable capacitors and connectors, as well as precision processing parts and plating electronics components. (From a press release on June 26, 2014)

Awards

-The Company announced that its subsidiary, Izumo Murata Manufacturing Co., Ltd., has received the "Quality Excellence Award" from the electronics division of Toyota Industries Corporation. (From a press release on June 18, 2014)

Outlook for FY ending Mar. 31, 2016

(in millions of JPY)
  FY ended Mar. 31, 2016
(Forecast)
FY ended Mar. 31, 2015
(Actual)
Rate of Change
(%)
Sales 1,160,000 1,043,542 11.2
Operating income 250,000 214,535 16.5
Net income 183,000 167,711 9.1

*Sales of products used for car electronics are forecast to increase 13% 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, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Components 31,133 26,365 21,100
Modules 20,040 14,780 12,379
Others 37 26 4
Headquarters 13,780 13,478 15,283
Total 64,990 54,649 48,766

-R&D expenses for the fiscal year ending March 2016 are forecast to be JPY 72,000 million.

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Expansion and rationalization of production facilities 67,704 47,597 55,770
Expansion of R&D facilities 7,380 8,184 7,337
Acquisition of land and buildings 10,921 2,757 5,135
Total 101,184 68,197 77,662

- Capital investments for the fiscal year ending March 2016 are forecast to be JPY 150,000 million.

Planned Capital Investments

(As of Mar. 31, 2015)
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 20,000 Apr. 2015 Mar. 2016
Kanazawa Murata Manufacturing Co., Ltd. Ishikawa Pref.
Japan
Facilities for manufacturing components 20,000 Apr. 2015 Mar. 2016
Izumo Murata Manufacturing Shimane Pref.
Japan
Facilities for manufacturing components 14,000 Apr. 2015 Mar. 2016
Wuxi Murata Electronics Co., Ltd. Wuxi, Jiangsu Province,
China
Facilities for manufacturing components 12,000 Apr. 2015 Mar. 2016
Yasu Plant Shiga Pref.
Japan
Facilities for manufacturing semi-finished products; R&D facilities 9,000 Apr. 2015 Mar. 2016