Murata Manufacturing Co., Ltd. Business Report FY ended Mar. 2018

Financial Overview

(in millions of JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 Rate of Change (%) Main factors
Sales 1,371,842 1,135,524 20.8 -Sales increased 20.8% y/y due to the growing needs for electronic components mainly for vehicle electrification; an increase in sales of new products for smartphones; and the acquisition of lithium-ion battery business.
Operating income 162,100 201,215 (19.4) -Operating income declined 19.4% y/y due to an increase in production costs and depreciation costs, despite an increase in sales of small-sized, large capacity condensers.
Profit for the year attributable to owners of the parent 146,086 156,060 (6.4) -
Automotive Electronics
Sales 200,200 168,700 18.7 1)

1) Sales of Products Used For Car Electronics
-Sales of in-vehicle condensers significantly increased due to the advancement of vehicle electrification.
-Sales of MEMS sensors for safety equipment increased.

Product Development

Power supply chip ferrite beads for automotive power train
-The Company announced that it started mass production of 0805 inch (2.0 mm x 1.25 mm) BLM21SP Series power supply chip ferrite beads for automotive power train safety in March. The new product has a high noise reduction effect. It is used for power lines, which tends to cause noise, to satisfy various noise standards. Murata Manufacturing improved impedance acquisition efficiency by introducing new internal electrode forming technology and optimizing structural design, and realized high impedance. The new product supports noise reduction of hybrid and electric vehicles, which need a large power current. It also conforms to AEC-Q200. The company will further develop products that respond to higher impedance and temperatures to strengthen its product lineup. (From an article in the Nikkan Jidosha Shimbun on March 26, 2018)

Lead type multilayer ceramic capacitors
-The Company announced that it has expanded the RHS Series of lead type multilayer ceramic capacitors for automotive use in high temperature applications. Products newly introduced this time include a 100Vdc rated product for 200 degrees C use and a 100Vdc rated product for 175 degrees C use with high capacitance. Automotive control equipment is mounted in an extreme environment where temperatures can approach as high as 200 degrees C. A high degree of heat resistance is needed for a capacitor utilized in such an environment. The RHS Series from Murata applies a coating of newly developed heat resistant resin around a highly heat resistant multilayer ceramic capacitor, allowing use at a 200 degrees C maximum temperature. The newly added 100Vdc products for 175 degrees C and 200 degrees C offer a smaller size and expand capacitance up to 0.1µF. The company aims to expand sales of these products for equipment mounted in high temperature environments such as engine compartments. The new products will be mass produced at Iwami Murata Manufacturing Co., Ltd. (From an article in the Nikkan Jidosha Shimbun on March 1, 2018)

Chip multilayer ceramic capacitors
-The Company announced that it has expanded its lineup of chip multilayer ceramic capacitors (GCG series) to extend temperature compensation and a high dielectric constant at a rated voltage 100Vdc for automotive applications using electrically conductive glue. Electronic components used in automotive engine rooms are subjected to harsh temperature environments, and therefore electrically conductive glue is used for surface mounting these components. Murata's GCG series chip multilayer ceramic capacitors support this surface mounting and are specifically designed for use with conductive glue for automotive powertrain and safety equipment applications. Utilizing newly developed AgPd electrodes for the external electrodes, the GCG series products provide strong bonding with conductive glue even in harsh high-temperature environments. The GCG series products comply with the AEC-Q200 test standards for reliability of automotive electrical parts. (From an article in the Nikkan Jidosha Shimbun on December 21, 2017)

Common mode choke
-The Company announced that in February 2018, it starts mass production of the DLW32MH_XK2 series of common mode choke coils that support 100Base-T1 and A2B interfaces for automotive applications. Murata has miniaturized the existing DLW43MH_XK2 series of 1812-inch size (4.5 mm x 3.2 mm) common mode choke coils and has been released them as the DLW32MH_XK2 series of 1210-inch size (3.2 mm x 2.5 mm) common mode choke coils. In the future, the company will be contributing to lighter weight wire harnesses and other products. (From a press release on February 19, 2018)

Heat-resistant film capacitors
-The Company announced that together with Shizuki Electric Co., Inc., it developed "FH series" heat-resistant film capacitors, which can be used in a high-temperature environment of 125°C. The products will meet the needs for heat-resistant film capacitors used in hybrid vehicles, electric vehicles, and other environmentally friendly vehicles. Needs for capacitors used in converter and motor drive inverters to guarantee high-temperature performance, are growing, and capacitors used in power supply lines that have a self-healing function are in demand. Conventional high-temperature film capacitors were conventionally guaranteed to withstand temperatures of up to 105°C, and there were apprehensions to the effect that the self-healing function was not very reliable and that there would be short mode breakdowns. Samples are scheduled to be available in September 2017, with mass production by Murata Shizuki FC Solutions Co. Ltd. beginning in April 2018. (From an article in the Nikkan Jidosha Shimbun on August 7, 2017)


-The Company announced that Murata Electronics Europe B.V., a wholly-owned subsidiary of Murata has completed the acquisition of IPDiA, headquartered in France, and IPDiA has become a subsidiary of Murata as October 17. It is part of Murata's strategy to strengthen its core business within the communication (mobile) market, and to expand into new applications within the automotive and medical markets. (From a press release on October 18, 2016)

-Murata Manufacturing Co., Ltd. announced that it has signed an agreement, under which its Dutch subsidiary, Murata Electronics Europe B.V., will acquire the shares of France-based IPDiA S.A. IPDiA designs, develops, manufactures, and sells silicon-based passive devices and especially produces 3D silicon capacitors for medical, industrial, communication applications. It has a workforce of 130 employees in France and Canada. Through this acquisition, Murata is aiming to enhance its capacitor business in the communication, automotive, and medical markets. The transaction is scheduled to be completed by the end of October 2016. (From a press release on October 12, 2016)


Acquiring Sony’s Battery Business
-The Company announced that it has completed acquisition of Sony Corporation's battery business. Murata will make batteries its core business in the energy field. The supplier acquired all of the shares held by Tohoku Murata Manufacturing Co., Ltd., which was established by Sony to transfer its battery operations to Murata. The company will begin full-throated efforts to achieve the goals set out in its mid-term management plan by acquiring Sony's technology and business experience in the battery field and establish batteries as a core business in its energy operations. (From an article in the Nikkan Jidosha Shimbun on September 20, 2017)

-The Company and Sony Corporation (Sony) announced that they aim to complete the transfer of battery business from Sony to Murata by early July 2017 in light of the current review status of the required regulatory approvals. According to their press release on October 31, 2016, the target closing date was early April 2017. (From a press release on February 15, 2017)

Outlook for FY ending Mar. 31, 2019

(in millions of JPY)
FY ended Mar. 31, 2019
FY ended Mar. 31, 2018
Rate of Change
Sales 1,575,000 1,371,842 14.8
Operating income 240,000 162,100 48.0
Profit for the year attributable to owners of the parent 180,000 146,086 23.2

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income, etc.)

R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Components 46,909 37,887 32,888
Modules 30,425 28,828 31,465
Others - 24 45
Headquarters 16,847 15,070 13,584
Total 94,181 81,809 77,982

-R&D expenses for the fiscal year ending March 2019 are forecast to be JPY 110,000 million.

-The Company announced that it will construct a new research & development center "Minato Mirai Innovation Center" in Minato Mirai 21 district of Yokohama, Kanagawa Prefecture. Murata aims to enhance its basic research, design and product development capabilities in the domain of communication, automobile, energy and healthcare. The new 18-story center will have 65,607.71 square meters of total floor area on 7,414.88 square meters of land. The company will invest about JPY 40 billion in the new center, where more than 1,000 employees will work. Construction is to begin in May 2018 and expected to be completed in September 2020. (From a press release on November 29, 2017)

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Expansion and rationalization of production facilities 194,101 88,869 122,845
Expansion of R&D facilities 15,634 12,888 12,419
Acquisition of land and buildings 57,638 35,096 14,681
Total 306,608 158,579 172,540

-Capital investments for the fiscal year ending March 2019 are forecast to be JPY 340,000 million.

Investments in Japan

-The Company announced that Izumo Murata Manufacturing Co., Ltd. (Izumo Murata) will construct the second welfare building and a logistical building within its property from May 2017. The background is a significant increase of demands for multilayer ceramic capacitors equipped with vehicles, which Izumo Murata develops and manufactures. Murata regards Izumo Murata as Mother Plant of multilayer ceramic capacitors. Vehicles’ electrification is now advancing, and 1,000 - 3,000 multilayer ceramic capacitors are equipped with one vehicle. This construction of two buildings aims at improving welfare facilities, and simplification and streamlining of in-plant logistics. Both buildings are scheduled for completion in May 2018, and total investment is estimated to be JPY 3.8 million. (From a press release on April 21, 2017)

Investments outside Japan

-The Company announced that its subsidiary, Philippine Manufacturing Co. of Murata, Inc., held a ceremony to commemorate completion of its second plant building in Batangas, the Philippines. Electrification of vehicles is advancing, and the subsidiary constructed the new building to respond to growing demand for automotive electronic parts. It increased production capacity for multilayer ceramic capacitors used in smartphones and automobiles for Chinese, European, and U.S. Customers. The plant is two stories high and has a total floor area of 73,117 square meters. The capital investment for the building was JPY 5 billion. (From an article in the Nikkan Jidosha Shimbun on March 22, 2018)

Planned Capital Investments

(As of Mar. 31, 2018)
Location Targets of investments Planned amount of investment
(million yen)
From To
Kanazawa Murata Manufacturing Co., Ltd. Hakusan,
Ishikawa Pref.
Facilities for manufacturing components and modules 51,000 Apr. 2018 Mar. 2019
Izumo Murata Manufacturing Co., Ltd. Izumo,
Shimane Pref.
Facilities for manufacturing components 34,000 Apr. 2018 Mar. 2019
Murata Energy Device Wuxi Co., Ltd. Wuxi,
Jiangsu Province, China
Facilities for manufacturing components 24,000 Apr. 2018 Mar. 2019
Fukui Murata Manufacturing Co., Ltd. Echizen,
Fukui Pref.
Facilities for manufacturing components 23,000 Apr. 2018 Mar. 2019
Toyama Murata Manufacturing Co., Ltd. Toyama,
Toyama Pref.
Facilities for manufacturing components and modules 22,000 Apr. 2018 Mar. 2019
Okayama Murata Manufacturing Co., Ltd. Setouchi,
Facilities for manufacturing components and modules 21,000 Apr. 2018 Mar. 2019