Murata Manufacturing Co., Ltd. Business Report FY ended Mar. 2016
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | Rate of Change (%) | Main factors | |
| Overall | ||||
| Sales | 1,210,841 | 1,043,542 | 16.0 | -Sales increased year-on-year due to a sales focus on growing markets and favorable currency translation due to the weak yen. |
| Operating income | 275,406 | 214,535 | 28.4 | -Although the Company’s business performance as impacted by negative factors such as higher fixed expenses in line with greater production capacity, and lower product selling prices, income grew significantly due to launching new products with higher added value, making better utilization of production capacity, implementing cost-cutting initiatives, and reaping the benefits of favorable currency translation due to the weak yen. |
| Profit for the year attributable to owners of the parent | 203,776 | 167,711 | 21.5 | - |
| Automotive Electronics | ||||
| Sales | 152,800 | 144,300 | 5.9 | 1) |
Factors
1) Sales of Products Used For Car Electronics
-Robust sales of automotive condensers due to greater vehicle electrification.
-Significantly higher sales of ultrasonic sensors for automotive safety devices.
-Continued reduction in sales of power-sources and modules for car audio systems.
New Products
Noise Filter for Onboard Information Devices
-The Company announced that it has introduced multilayer-type noise filters specifically designed for suppressing radiation noise in audio lines. These new models added to the NFZ18SM_SZ series and are compatible with automotive information devices for the first time. Available in the 0603 inch (1.6 x 0.8 mm) package size, the new products achieve a high rated current in excess of 1A. The Company has already started mass production of these new products. (From a press release on March 28, 2016)
Automotive Grade Monolithic Ceramic Capacitors
-The Company announced that it has developed and released new GRT series automotive grade monolithic ceramic capacitors that meet the AEC-Q200 standards. The GRT series were developed for use in automotive infotainment and comfort systems, and are expected to help enhance product reliability and reduce the size of these in-vehicle systems that are required to meet the AEC-Q200. (From a press release on January 12, 2016)
Product Development
-The Company has developed the GCB series of monolithic ceramic capacitors which support the conductive adhesives used under high temperatures up to 200 degrees Celsius. These capacitors are intended for use in automotive powertrains and safety devices. Sample shipments have already begun, and mass production is scheduled to start by the end of 2016. (From a press release on February 17, 2016)
-The Company announced that it has developed a water-repellent monolithic ceramic capacitor. Applied with a water-repellant coating on its surface, the new capacitor can prevent the possibilities of malfunctions due to ion migration that could eventually cause short circuits. The capacitor will be used for various applications such as navigation systems, body control electronic control units (ECUs), air conditioner ECUs, meter ECUs, and engine ECUs. Samples of the new product are now available and mass production is scheduled to start by the end of 2015. (From a press release on July 29, 2015)
Expanding Evaluation, Testing, and Production Facilities
-The Company announced that it will set up an anechoic chamber at its Yokohama Technical Center in Japan to support its customers’ Electro-Magnetic Compatibility (EMC) evaluation activities. The new chamber will conduct emission and immunity testing of automotive equipment such as advanced driver assistance systems and in-vehicle infotainment systems. (From a press release on January 14, 2016)
-The Company announced that its subsidiary, Sabae Murata Manufacturing Co., Ltd., located in Fukui Prefecture, Japan, will break ground on its new manufacturing facility within the premises in January 2016. Approximately JPY 2.7 billion will be invested in the new building, which will have a total floor area of 8,181 square meters. The construction work is scheduled to be completed in December 2016. Sabae Murata Manufacturing is engaged in manufacturing metal structural parts such as connectors and variable capacitors that include position sensors, as well as precision processing parts and plating electronics components. (From a press release on December 17, 2015)
-Izumo Murata Manufacturing Co., Ltd., a subsidiary of the Company in Shimane Prefecture, announced that it will break ground on two new manufacturing facilities within the premises in April 2015. The new facilities will manufacture monolithic ceramic capacitors for use in smartphones and automobiles in order to meet growing demand. In total, JPY 18 billion will be invested in this project. The new buildings, one of which will have a floor area of 5,344 square meters and the other will have a floor area of 22,436 square meters, are scheduled to be completed by October 2016. Izumo Murata Manufacturing plans to hire approximately 300 technical and manufacturing staff at the new facilities in the first three years. (From a press release on May 13, 2015)
Awards Won
-ZF Friedrichshafen AG announced that it has recognized 14 suppliers with the “ZF Supplier Award.” The Company was honored in the “Production Materials” category. (From a press release on December 8, 2015)
Outlook for FY ending Mar. 31, 2016 |
(in millions of JPY) |
| FY ended Mar. 31, 2016 (Forecast) |
FY ended Mar. 31, 2016 (Actual) |
Rate of Change (%) |
|
| Sales | 1,225,000 | 1,210,841 | 1.2 |
| Operating income | 240,000 | 275,406 | (12.9) |
| Profit for the year attributable to owners of the parent | 178,000 | 203,776 | (12.6) |
*Sales of products used for car electronics are forecast to increase 6% 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, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Components | 32,888 | 31,133 | 26,365 |
| Modules | 31,465 | 20,040 | 14,780 |
| Others | 45 | 37 | 26 |
| Headquarters | 13,584 | 13,780 | 13,478 |
| Total | 77,982 | 64,990 | 54,649 |
-R&D expenses for the fiscal year ending March 2017 are forecast to be JPY 90,000 million.
-The Company’s R&D headquarters is developing new technology and products especially for the automotive, health-care, and Medicare markets, under the idea of forging new business operations.
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Expansion and rationalization of production facilities | 122,845 | 67,704 | 47,597 |
| Expansion of R&D facilities | 12,419 | 7,380 | 8,184 |
| Acquisition of land and buildings | 14,681 | 10,921 | 2,757 |
| Total | 172,540 | 101,184 | 68,197 |
-Capital investments for the fiscal year ending March 2017 are forecast to be JPY 160,000 million.
Planned Capital Investments |
(As of Mar. 31, 2015) |
| Facility (Location) |
Location | Targets of investments | Planned amount of investment (million yen) |
From | To |
| Kanazawa Murata Manufacturing Co., Ltd. | Hakusan, Ishikawa Pref. |
Facilities for manufacturing components | 42,000 | Apr. 2016 | Mar. 2017 |
| Izumo Murata Manufacturing Co., Ltd. | Izumo, Shimane Pref. |
Facilities for manufacturing components | 23,000 | Apr. 2016 | Mar. 2017 |
| Fukui Murata Manufacturing Co., Ltd. | Echizen, Fukui Pref. |
Facilities for manufacturing components | 12,000 | Apr. 2016 | Mar. 2017 |
| Yasu Plant | Shiga Pref. Japan |
Production facilities for semi-finished products; and R&D facilities | 9,000 | Apr. 2016 | Apr. 2017 |
| Wuxi Murata Electronics Co., Ltd. | Wuxi, Jiangsu Province, China |
Facilities for manufacturing components | 7,000 | Apr. 2016 | Apr. 2017 |