[Corporate Information Meeting] Presentation Material for Information Meeting 2021(Announcement of Vision 2030 and Mid-term Direction 2024) (PDF: 1.87MB)

Information Meeting 2021

November 15, 2021

Murata Manufacturing Co., Ltd.

15 November 2021

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Key Messages

• There will be a major change in the business environment surrounding Murata by 2030
• Practice management that creates a Continuous Cycle of social value and economic value
• Set the three-layer portfolio as the axis of strategies

Revision of Segment Information

• Make strategic investments in preparation for future opportunities and risks
• Continue to set ROIC as a management target

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Review of Mid-term Direction 2021

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Review of Mid-term Direction 2021:

Management Targets

	FY2018		FY2021
	Results	Target	Forecast	Compared to
	FY 2018
Net sales (JPY)	1,575.0 billion	2,000 billion	1,730.0 billion	+9.8%
Operating income ratio	16.9%	17% or higher	21.1%	+4.2pt
ROIC (pre-tax basis)	18.9%	20% or higher	20.4%	+1.5pt

Net sales (B JPY)		Operating income ratio

ROIC (pre-tax basis)

CAGR：+3.2%	1,730.0
	21.1%
	1,630.2
1,575.0	19.2%
1,534.0

18.9%

20.4%

18.5%

16.9%

16.5%

FY2018	FY2019	FY2020	FY2021	FY2018	FY2019	FY2020	FY2021
			Projections				Projections

16.1%

FY2018 FY2019 FY2020 FY2021 Projections

Net sales: Expected to miss target. Because of the FY2019 adjustments to production of electronic equipment and adjustments

to inventories of electronic components, we could not achieve the sales growth rate we were anticipating. Operating income ratio: Expected to significantly exceed the target due to a gain from a better operational rate thanks to

higher output on the back of robust demand, an improvement in the profitability of products, and a positive change in the product mix in FY2021.

ROIC (pre-taxbasis): Expected to exceed the target due to a higher operating income ratio than planned although an improvement in the capital turnover rate is behind schedule.

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Review of Mid-term Direction 2021: Group-Wide Issues

Group-Wide Issues	Review of Mid-term Direction 2021

Ongoing issues connected to Mid-term 2024

Implementation of Portfolio Management

Establishment of

Advanced Supply

System & Exponential

Productivity Enhancement

Harmony among people, organization, and society

• Introduced a business feasibility model Efficiently allocated management resources
• Revised the business portfolio (Battery business, Wi-FiⓇ module business, etc.)
• Expanded and reinforced production capacity centered on MLCC
• Introduced a production planning system
• Implemented the themes for productivity enhancement and reduction of production losses
• Conducted employee survey. Proceeded with the effort to improve the corporate culture
• Identified materiality and set KPIs, thereby building a system for advancing efforts

• Evolution of portfolio

management

(Realization of a 3-layered portfolio)

• Expand business with a new understanding of the market (automobile -> mobility)
• As monozukuri in wide meaning, enhancement of productivity and reinforcement of responsiveness to change
• Develop a concrete personnel strategy using results of employee surveys and execute it
• Strengthen initiatives to link contributions to solving social issues to business growth

• We steadily implemented the effort to "Rebuild a strong management foundation" taken as the slogan in Mid-term Direction 2021, captured expanding business opportunities and realized Healthy & Sustainable Growth.
• Issues that manifested themselves in Mid-term Direction 2021 will be carried over to Mid-term Direction 2024, and we are determined to follow through with solving the issues.

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