[Financial Results] Financial Results for FY2021 (PDF: 5.00MB)

Consolidated Financial Data (Unaudited) [In accordance with US GAAP] Murata Manufacturing Co., Ltd. and Subsidiaries

Consolidated Financial Flash Report (March 31, 2022)

Date: April 28, 2022

Company Name	: Murata Manufacturing Co., Ltd.	Stock Exchange Listings:
Listing Code	: 6981	Tokyo Stock Exchange
(URLhttps://corporate.murata.com)	Stock Exchange of Singapore
Phone	: [phone]

The date of payout of dividends: June 30, 2022

1. Consolidated Financial results for the year ended March 31, 2022 (1) Operating results (Years ended March 31, 2022 and 2021)

Net sales	Operating income	Income before income taxes	Net income attributable to Murata Corporation
2022 2021	Millions of yen 1,812,521 1,630,193	% 11.2 6.3	Millions of yen 424,060 313,240	% 35.4 23.7	Millions of yen 432,702 316,417	% 36.8 24.6	Millions of yen 314,124 237,057	% 32.5 29.5

Comprehensive income attributable to Murata Corporation: 419,069 million yen for the year ended March 31, 2022 and 293,766 million yen for the year ended March 31, 2021.

Basic earnings attributable to Murata Corporation per share	Diluted earnings attributable to Murata Corporation per share	Net income attributable to Murata Corporation / Shareholders' equity	Income before income taxes / Total assets	Operating income / Net sales
2022 2021	Yen 490.95 370.51	Yen - -	% 15.0 13.1	% 16.4 13.4	% 23.4 19.2

* Percentage represents year-on-year changes.

(2) Financial position (At March 31, 2022 and 2021)

Total assets	Shareholders' equity	Shareholders' equity ratio	Shareholders' equity per share
2022 2021	Millions of yen 2,809,171 2,462,261	Millions of yen 2,263,596 1,920,805	% 80.6 78.0	Yen 3,537.80 3,002.12

(3) Cash flows (Years ended March 31, 2022 and 2021)

Net cash provided by operating activities	Net cash used in investing activities	Net cash provided by financing activities	Cash and cash equivalents at end of year
2022 2021	Millions of yen 421,458 373,571	Millions of yen (212,300) (150,275)	Millions of yen (117,505) (118,189)	Millions of yen 512,072 407,699

2. Dividends (Years ended March 31, 2022 and 2021, and the year ending March 31, 2023)

Cash dividends per share	Cash dividends (Total)	Consolidated basis
First Quarter	Second Quarter	Third Quarter	Year-end	Total	Payout ratio	Dividend on equity (DOE)
2021 2022	Yen - -	Yen 55.00 60.00	Yen - -	Yen 60.00 70.00	Yen 115.00 130.00	Millions of yen 73,579 83,178	% 31.0 26.5	% 4.1 4.0
2023 (Projected)	-	75.00	-	75.00	150.00	29.6

* The effect of purchase of the Company's own shares resolved at Board of Directors Meeting held on April 28, 2022 is not included in the calculation of "Payout ratio".

3. Projected financial results for the six months ending September 30, 2022 and the year ending March 31, 2023 (Consolidated basis)

Net sales	Operating income	Income before income taxes	Net income attributable to Murata Corporation	Basic earnings attributable to Murata Corporation per share
Six months ending September 30, 2022 Year ending March 31, 2023	Millions of yen 952,000 1,930,000	% 4.8 6.5	Millions of yen 209,000 440,000	% (5.9) 3.8	Millions of yen 210,000 442,000	% (7.8) 2.1	Millions of yen 154,000 324,000	% (8.2) 3.1	Yen 240.69 506.38

* Percentage represents year-on-year changes.

* The effect of purchase of the Company's own shares resolved at Board of Directors Meeting held on April 28, 2022 is not included in the calculation of "Basic earnings attributable to Murata

Corporation per share".

4. Notes

• (1) Changes in significant subsidiaries (changes in specific subsidiaries that caused change in scope of consolidation): None

• (2) Changes in accounting policy

  Changes due to adoption of new accounting standard: None Changes due to reasons other than above: None

• (3) Number of common shares outstanding

  Number of shares outstanding, including treasury stock: 675,814,281 shares at March 31, 2022 and 675,814,281 shares at March 31, 2021 Number of treasury stock: 35,982,533 shares at March 31, 2022 and 35,998,818 shares at March 31, 2021

  Average number of shares outstanding: 639,819,808 shares for the year ended March 31, 2022 and 639,801,439 shares for the year ended March 31, 2021 *See "Amounts per Share" for the average common shares outstanding, which is the basis of computation of earnings per share.

[Reference] Financial Results on Parent Company Basis

1. Financial results for the year ended March 31, 2022

(1) Operating results (Years ended March 31, 2022 and 2021)

Net sales	Operating income	Income before income taxes and extraordinary items	Net income
2022 2021	Millions of yen 1,233,464 1,107,863	% 11.3 6.0	Millions of yen 125,480 47,138	% 166.2 24.7	Millions of yen 213,786 90,872	% 135.3 32.4	Millions of yen 184,784 85,317	% 116.6 26.1

Basic earnings per share	Diluted earnings per share
2022 2021	Yen 288.80 133.35	Yen - -

*1 Percentage represents year-on-year changes.

*2 The diluted earnings per share are not stated since there were no dilutive potential securities.

(2) Financial position (At March 31, 2022 and 2021)

Total assets	Shareholders' equity	Shareholders' equity ratio	Shareholders' equity per share
2022 2021	Millions of yen 1,425,313 1,268,960	Millions of yen 730,966 623,496	% 51.3 49.1	Yen 1,142.44 974.49

*Notes to the projected financial results

The above projections were prepared based on estimates using information currently available.

Actual results may differ from the projections. For assumptions and other information regarding the projections, refer to "Business Results and Financial Position".

Business Results and Financial Position (from April 1, 2021 through March 31, 2022)

1. Business Results

The global economic environment for the period under review showed signs of recovery, resulting from progress in economic activities driven by the spread of COVID-19 vaccinations and government stimulus measures in various countries. On the other hand, there are signs that the supply chain has been disrupted globally mainly due to Russia's invasion of Ukraine and lockdowns in China in the wake of the spread of COVID-19, and inflation has been sped up by surges in natural resource and energy prices, leaving the outlook for the global economy uncertain.

Murata Manufacturing Co., Ltd. and subsidiaries (hereinafter referred to as the Companies) operate in the electronics market. In this market, demand for Automotive electronics increased significantly year on year due to progress in electrification of automobiles and the accumulation of parts inventory by customers. Demand for PCs continued to be steady, boosted mainly by the demand for remote work. On the other hand, demand for smartphones remained weak partly due to inventory adjustment by major clients in Greater China.

In these circumstances, net sales of connectivity modules for smartphones decreased. However, net sales of multilayer ceramic capacitors (MLCCs) increased significantly in the areas of computers and peripherals and automotive Electronics. Further, net sales of lithium-ion secondary batteries for power tools increased. As a result, net sales for the period under review increased 11.2% year on year to 1,812,521 million yen, marking a record high, boosted in part by currency fluctuations (the yen depreciated by 6.32 yen year-on-year).

Performance was positively contributed to by an improved operation ratio and cost reduction, depreciation of the yen, despite an increase in production-related expenses driven by production growth.

As a result, operating income was 424,060 million yen, up 35.4% year on year, income before income taxes was 432,702 million yen, up 36.8% year on year, and net income attributable to Murata Corporation was 314,124 million yen, up 32.5% year on year.

For the period under review, ROIC (pre-tax basis) increased 4.1 points year on year to 22.6% due to big growth in operating income, despite an increase in invested capital as a result of building up inventories with an eye on demand for electronic components expected in the next consolidated fiscal year.

Millions of yen
Year ended March 31, 2021	Year ended March 31, 2022	Change
Net sales	1,630,193	%* 100.0	1,812,521	%* 100.0	182,328	% 11.2
Operating income	313,240	19.2	424,060	23.4	110,820	35.4
Income before income taxes	316,417	19.4	432,702	23.9	116,285	36.8
Net income attributable to Murata Corporation	237,057	14.5	314,124	17.3	77,067	32.5
Return on invested capital (ROIC)* (pre-tax basis)	18.5	-	22.6	-	4.1	-
Average exchange rate (Yen/US dollar)	106.06	-	112.38	-	6.32	-
Average exchange rate (Yen/Euro)	123.70	-	130.56	-	6.86	-

*ＲＯＩＣ（pre-tax basis）＝ Pre-tax operating income ／ Average invested capital at the beginning and end of the period（=Net fixed assets[book value]＋inventories＋accounts receivable-trade－accounts payable-trade ）

Sales by Product Category

Net sales by product category for the period under review were as follows.

Millions of yen
Year ended March 31, 2021	Year ended March 31, 2022	Change
Capacitors Piezoelectric Components Other Components Components Total	626,546 129,288 387,648	%* 38.5 8.0 23.8	785,254 138,357 460,443	%* 43.4 7.7 25.4	158,708 9,069 72,795	% 25.3 7.0 18.8
1,143,482	70.3	1,384,054	76.5	240,572	21.0
Modules	484,099	29.7	425,562	23.5	(58,537)	(12.1)
Net sales	1,627,581	100.0	1,809,616	100.0	182,035	11.2

*Component ratio as a percentage of net sales

Sales of Components for the period under review increased by 21.0% year-on-year to 1,384,054 million yen.

〔Capacitors〕

The Capacitors category includes MLCCs.

For the period under review, sales of multilayer ceramic capacitors (MLCCs) increased significantly not only for PCs, against the background of demand for remote work and online education, but also for car electronics due to progress in electrification of automobiles and the accumulation of parts inventory by clients.

As a result, overall net sales increased by 25.3% year-on-year to 785,254 million yen.

〔Piezoelectric Components〕

The Piezoelectric Components category includes SAW filters, piezoelectric sensors, and ceramic resonators.

For the period under review, sales of piezoelectric sensors grew for HDDs, and sales of ceramic resonators expanded for a broad range of applications.

As a result, overall net sales increased by 7.0% year-on-year to 138,357 million yen.

〔Other Components〕

Other Components include lithium-ion secondary batteries, inductors, electromagnetic interference suppression filters, connectors, sensors and thermistors.

For the period under review, sales of lithium-ion secondary batteries for power tools, as well as sales of inductors for PCs and automotive electronics, increased significantly.

As a result, overall net sales increased by 18.8% year-on-year to 460,443 million yen.

The Modules category includes connectivity modules, RF modules, multilayer resin substrates, power supplies modules, and multilayer ceramic devices.

For the period under review, sales of connectivity modules decreased for smartphones due to the restructuring of product portfolios, and sales of multilayer resin substrates also fell for communication devices.

As a result, overall net sales decreased by 12.1% year-on-year to 425,562 million yen.