To whom it may concern:

October 31, 2017

Company: Murata Manufacturing Co., Ltd.

(Code: 6981, First section of the Tokyo Stock Exchange) Chairman of the Board, President and

Representative Director: Tsuneo Murata Contact: Yoshito Takemura

Executive Vice President (Board Member), Planning Administration Unit

Telephone: +81-75-955-6525

Murata Manufacturing Co., Ltd Makes Adjustment to the Projected Finance Results of Full-Year

Notice is hereby that Murata Manufacturing, Co., Ltd (the Company), in consideration of the recent business trend, has made adjustment to the projected finance results for full-year ending March 31, 2018, which was announced on April 28, 2017.

1. Adjustment to the projected finance result on a consolidated basis for full-year ending March 31, 2018 (April 1, 2017 through March 31, 2018):

(Millions of yen)

Net Sales

Operating Income

Income before Income taxes

Net Income attributable to Murata Corporation

Basic earnings attributable to Murata Corporation per share

(yen)

Previous forecast (A)

1,225,000

226,000

230,000

174,000

817.91

Adjusted forecast (B)

1,362,000

170,000

180,000

144,000

676.06

Amount of increase or decrease (B-A)

137,000

56,000

50,000

30,000

-

Rate of increase or decrease (%)

11.2

24.8

21.7

17.2

-

(Reference)

Business results for year ended March 31, 2017

(April 1,2016 through March 31, 2017)

1,135,524

201,215

200,418

156,060

733.87

2Reasons for the adjustment:

The Companies' full-year net sales are expected to surpass the initial forecast. Despite the slow recovery of Chinese smartphones, demand for electronic components continues because of progress in the functional sophistication of smartphones and the electrification of vehicles. A further positive element is the inclusion of the lithium-ion secondary battery business following the completion of the acquisition process in September 2017.

Full-year earnings will likely be lower than the previously announced figures. Reasons include a substantial increase in production costs due to a delay in improving percent defective for new, technically challenging products, increases in depreciation and amortization on and investments resulting from efforts to reinforce the production capacity for new products, and a less favorable product mix due to a delay from the schedule in the recovery of demand for profitable products. As a result, the projected business results for the year ending March 31, 2018, as announced on April 2017, have been revised as shown above.

The assumed exchange rates have also been changed from 108 yen to 110 yen against the U.S. dollar and changed from 115 yen to 130 yen against the Euro.

The above projected finance results are based on information currently available to the Company. Due to various factors, actual results may differ from such the projected finance results.

-End of News Release-

Murata Manufacturing Co. Ltd. published this content on 31 October 2017 and is solely responsible for the information contained herein.
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