[Financial Results] Second Quarter of FY2021

Consolidated Financial Data (Unaudited) [In accordance with US GAAP]

Murata Manufacturing Co., Ltd. and Subsidiaries

Consolidated Financial Flash Report (September 30, 2021)	Date: October 29, 2021
Company Name	: Murata Manufacturing Co., Ltd.	Stock Exchange Listings:
Listing Code	: 6981	Tokyo Stock Exchange
(URL https://corporate.murata.com)		Stock Exchange of Singapore
Phone	: [phone]
The date of payout of dividends	: November 29, 2021

1. Consolidated financial results for the six months ended September 30, 2021

(1) Operating results

	Net sales		Operating income		Income before		Net income attributable to
			income taxes		Murata Corporation
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%
Six months ended September 30, 2021	908,074	20.8	222,109		68.9	227,853		71.1	167,788	68.0
Six months ended September 30, 2020	752,005	(1.2)	131,518		8.3	133,154		6.7	99,860	10.1

Comprehensive income attributable to Murata Corporation: 175,828 million yen for the six months ended September 30, 2021 and 99,950 million yen for the six months ended September 30, 2020.

	Basic earnings attributable	Diluted earnings attributable
	to Murata Corporation	to Murata Corporation
	per share	per share
	Yen	Yen
Six months ended September 30, 2021	262.24	-
Six months ended September 30, 2020	156.08	-

• Percentage represents year-on-year changes.

1. Financial position

	Total assets	Shareholders'	Shareholders'	Shareholders' equity
	equity	equity ratio	per share
	Millions of yen	Millions of yen	%	Yen
At September 30, 2021	2,598,565	2,058,671	79.2	3,217.51
At March 31, 2021	2,462,261	1,920,805	78.0	3,002.12

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

				Cash dividends per share
	First Quarter	Second Quarter	Third Quarter	Year-end	Total
		Yen	Yen		Yen		Yen	Yen
2021	-		55.00	-		60.00		115.00
2022	-		60.00	-
2022 (Projected)				-		60.00		120.00

* No change in the projected dividends during the three months ended September 30, 2021.

3. Projected financial results for the year ending March 31, 2022 (Consolidated basis)

						Income before		Net income attributable to	Basic earnings attributable to
	Net sales		Operating income			Murata Corporation
			income taxes		Murata Corporation
							per share
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%	Yen
Year ending March 31, 2022	1,730,000	6.1	365,000		16.5	367,000		16.0	271,000	14.3	423.56

• No change in the projected financial results during the three months ended September 30, 2021. Percentage represents year-on-year changes.

4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2021 (changes in specific subsidiaries that caused change in scope of consolidation): None
2. Adoption of simplified and specifically applied accounting methods

Murata Manufacturing Co., Ltd. and Subsidiaries (the "Companies") adopted accounting methods specifically applied for quarterly consolidated financial reporting.

(3) Changes in accounting policy

Changes due to adoption of new accounting standard: None

Changes due to reasons other than above: None

(4) Number of common shares outstanding

Number of shares outstanding, including treasury stock: 675,814,281 shares at September 30, 2021 and at March 31, 2021

Number of treasury stock: 35,981,605 shares at September 30, 2021 and 35,998,818 shares at March 31, 2021

Average number of shares outstanding: 639,815,713 shares for the six months ended September 30, 2021 and 639,796,585 shares for the six months ended September 30, 2020

*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".

1

Business Results and Financial Position

(from April 1, 2021 through September 30, 2021)

1. Business Results

The global economy during the six months ended September 30, 2021 showed signs of recovery mainly in the United States and Europe, where economic activities were resumed as COVID-19 vaccines became widely available. However, the economic recovery slowed in the period under review mainly due to the global resurgence of COVID-19 variants and constrained production activities caused by a shortage of semiconductor supplies. The business recovery of the U.S. slowed due to sluggish personal consumption and employment amid the resurgence of COVID-19, despite the implementation of large-scale economic measures. In China, a sense of economic stagnation is growing amid high resource prices and delayed recovery of employment, together with concerns about tightening of restrictions on certain sectors.

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 the recovery in automobile production volume and accumulating parts inventory to prepare for future production growth. Demand also expanded in the smartphone market driven by an increase in 5G smartphones, and demand for PCs continued to be steady, boosted mainly by the demand for remote work.

In these circumstances, in the six months ended September 30, 2021, net sales of our mainstay multilayer ceramic capacitators (MLCCs) increased significantly in the areas of automotive electronics, computers and peripherals, and net sales of inductors rose in the areas of smartphones, computers and peripherals. Net sales of lithium ion secondary batteries for power tools also increased. As a result, net sales in the six months ended September 30, 2021 increased by 20.8% year-on-year to 908,074 million yen, boosted in part by currency fluctuations (the yen depreciated by 2.88 yen year-on-year).

Performance was positively contributed to by an improved operation ratio and cost reduction, despite an increase in production-related expenses driven by production growth. As a result, operating income was 222,109 million yen, up 68.9% year on year, income before income taxes was 227,853 million yen, up 71.1% year on year, and net income attributable to Murata Corporation was 167,788 million yen, up 68.0% year on year.

2

			Millions of yen
	Six months ended	Six months ended	Change
	September 30, 2020	September 30, 2021
		%*		%*			%
Net sales	752,005	100.0	908,074	100.0	156,069		20.8
Operating income	131,518	17.5	222,109	24.5	90,591		68.9
Income before income taxes	133,154	17.7	227,853	25.1	94,699		71.1
Net income attributable to	99,860	13.3	167,788	18.5	67,928		68.0
Murata Corporation
Average exchange rate (Yen/U.S. dollar)	106.92	-	109.80	-	2.88		-
Average exchange rate (Yen/Euro)	121.29	-	130.89	-	9.60		-

*Component ratio as a percentage of net sales

Sales by Product Category

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

				Millions of yen
		Six months ended	Six months ended	Change
		September 30, 2020	September 30, 2021
			%*		%*			%
	Capacitors	290,557	38.7	391,683	43.2	101,126		34.8
	Piezoelectric Components	60,742	8.1	76,328	8.4	15,586		25.7
	Other Components	178,704	23.8	231,891	25.6	53,187		29.8
	Components Total	530,003	70.6	699,902	77.2	169,899		32.1
Modules	220,731	29.4	206,727	22.8	(14,004)		(6.3)
Net sales	750,734	100.0	906,629	100.0	155,895		20.8

*Component ratio as a percentage of net sales

Sales of Components for the period under review increased by 32.1% year-on-year to 699,902 million yen.

〔Capacitors〕

The Capacitors category includes MLCCs.

Sales of capacitators for automobile electronics increased significantly in the six months ended September 30, 2021, as customers continued to secure inventories of components aimed at boosting production in the future. Sales of computers and peripherals as well as smartphones, also increased.

As a result, overall net sales increased by 34.8% year-on-year to 391,683 million yen.

〔Piezoelectric Components〕

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

Sales of SAW filters increased significantly for smartphones and IoT devices, in the six months ended September 30, 2021.

As a result, overall net sales increased by 25.7% year-on-year to 76,328 million yen.

3

〔Other Components〕

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

Sales of inductors for smartphones and PCs, as well as sales of lithium ion secondary batteries for power tools, increased significantly in the six months ended September 30, 2021.

As a result, overall net sales increased by 29.8% year-on-year to 231,891 million yen.

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

In the six months ended September 30 2021, sales of connectivity modules decreased for smartphones due to the restructuring of product portfolios, and sales of RF modules also fell for smartphones.

As a result, overall net sales decreased by 6.3 % year-on-year to 206,727 million yen.

Sales by Application Category

Net sales by Application Category for the period under review were as follows.

			Millions of yen
	Six months ended	Six months ended	Change
	September 30, 2020	September 30, 2021
		%		%			%
AV	36,143	4.8	39,614	4.4	3,471		9.6
Communications	381,315	50.8	392,723	43.3	11,408		3.0
Computers and Peripherals	139,264	18.5	182,757	20.1	43,493		31.2
Automotive Electronics	109,263	14.6	164,837	18.2	55,574		50.9
Home and Others	84,749	11.3	126,698	14.0	41,949		49.5
Net sales	750,734	100.0	906,629	100.0	155,895		20.8
*Based on our estimate

〔AV〕

On the back of demand from the stay-at-home economy, sales of MLCCs for video game consoles increased in the six months ended September 30, 2021.

As a result, overall net sales increased by 9.6% year-on-year to 39,614 million yen.

〔Communication〕

Sales of MLCCs and SAW filters for smartphones increased in the six months ended September 30, 2021, while sales of MLCCs for base stations decreased.

As a result, overall net sales increased by 3.0% year-on-year to 392,723 million yen.

4

〔Computers and Peripherals〕

Sales of MLCCs and inductors for PCs increased significantly in the six months ended September 30, 2021 on the back of the healthy demand for remote work and e-learning.

As a result, overall net sales increased by 31.2% year-on-year to 182,757 million yen.

〔Automotive Electronics〕

Sales of MLCCs increased significantly in the six months ended September 30, 2021, as customers continued to secure inventories of components aimed at boosting production in the future. Sales of electromagnetic interference suppression filters and inductors also increased.

As a result, overall net sales increased by 50.9% year-on-year to 164,837 million yen.

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