Earnings Release Conference First Quarter of FY2022
(April 1, 2022 to June 30, 2022)
July 28, 2022
Murata Manufacturing Co., Ltd.
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Topics
- Net sales remained almost unchanged year on year. While sales of multilayer ceramic capacitors increased for mobility partly due to a boost from the depreciation of the yen, sales of SAW filters and high-frequency modules decreased for smartphones. Net sales ended in line with the assumption of the April forecast.
- Operating income decreased year on year. Operating income fell mainly due to a loss in productivity from lower capacity utilization, an increase in fixed costs and surges in material prices despite a profit-increasing effect resulting from the depreciation of the yen.
- The Company has not revised the projected financial results for the year ending March 31, 2023, which were announced on April 28, 2022.
Copyright © Murata Manufacturing Co., Ltd. All rights reserved. | 2 |
Thank you very much for your continued guidance and support of our IR activities. I would like to take this opportunity to express my gratitude once again.
Let me begin by explaining Q1 results.
Here are the topics for the financial results in Q1 of FY2022.
Net sales remained almost unchanged YoY. While net sales have benefited from the weaker yen, they have ended in line with the April forecast.
Operating income decreased YoY. Operating income decreased due to soaring material costs and other factors, despite an increase in profit due to the weaker yen.
I will explain the factors behind the increase or decrease in profits later. The projected financial results for FY2022 has not been revised from that announced in April. Accordingly, the dividend forecast remains unchanged.
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First Quarter of FY2022
From April 1, 2022 to June 30, 2022 Consolidated Basis
3 Copyright © Murata Manufacturing Co., Ltd. All rights reserved.
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Financial Results
Quarterly Financial Results
(B JPY) | Operating income | Income before income taxes | (B JPY) | |||||||
Net income attributable to Murata Corporation | Sales | |||||||||
140.0 | 600.0 | |||||||||
INCOME | 120.0 | 500.0 | SALES | |||||||||||
100.0 | ||||||||||||||
400.0 | ||||||||||||||
80.0 | ||||||||||||||
300.0 | ||||||||||||||
60.0 | ||||||||||||||
200.0 | ||||||||||||||
40.0 | ||||||||||||||
20.0 | 100.0 | |||||||||||||
0.0 | 0.0 | |||||||||||||
FY19 | FY20 | FY21 | FY22 | |||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q |
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This is a graph of our performance trend. I will explain this in detail on the following pages.
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Financial Results
Financial Results Overview
FY2021 | FY2021 | FY2022 | Y on Y Change | Q on Q Change | ||||||
1st Quarter | 4th Quarter | 1st Quarter | ||||||||
(B JPY) | (%) | (B JPY) | (%) | (B JPY) | (%) | (B JPY) | (%) | (B JPY) | (%) | |
Net sales | 439.6 | 100.0 | 433.1 | 100.0 | 436.7 | 100.0 | (2.9) | (0.7) | +3.6 | +0.8 |
Operating income | 105.1 | 23.9 | 88.0 | 20.3 | 88.6 | 20.3 | (16.5) | (15.7) | +0.6 | +0.7 |
Income before income | 103.7 | 23.6 | 89.8 | 20.7 | 101.2 | 23.2 | (2.5) | (2.4) | +11.4 | +12.7 |
taxes | ||||||||||
Net income attributable | 77.2 | 17.6 | 63.7 | 14.7 | 75.2 | 17.2 | (2.0) | (2.6) | +11.5 | +18.1 |
to Murata Corporation | ||||||||||
Average exchange rates | 109.49 | 116.21 | 129.57 | |||||||
yen/US dollar | ||||||||||
• Net sales remained almost unchanged year on year. While sales of multilayer ceramic capacitors increased for mobility partly due to a boost from the depreciation of the yen, sales of SAW filters and high-frequency modules decreased for smartphones.
• Operating income decreased year on year. Operating income fell mainly due to a loss in productivity from lower capacity utilization, an increase in fixed costs and surges in material prices despite a profit-increasing effect resulting from the depreciation of the yen.
• The reason why income before income taxes grew significantly compared with the last quarter is an increase in foreign exchange gains caused by the depreciation of the yen.
Note: 1 yen appreciation or depreciation against the U.S. dollar for FY2022 is estimated to have an annualized impact of 11.0 billion yen on net sales, and 6.0 billion yen on operating income.
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This is an overview of our financial results.
Net sales remained almost unchanged YoY and QoQ, although there were some foreign exchange effects.
Operating income fell 15.7% YoY but remained almost unchanged QoQ.
The difference between operating income and income before income taxes is large in this quarter. The reason for this is that foreign exchange gains of JPY12 billion were posted as non-operating income during this quarter. This is mainly due to foreign exchange gains on dollar-denominated deposits and other investment assets.
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Murata Manufacturing Co. Ltd. published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 07:35:00 UTC.