Murata Manufacturing Co., Ltd

6981

JP3914400001

Electronic Equipment & Parts

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Apr. 26	Murata Manufacturing Co., Ltd. announces an Equity Buyback for 44,000,000 shares, representing 2.33% for ¥80,000 million.	CI
Apr. 26	Murata Manufacturing Co., Ltd. Revises Year-End Dividend Projection for the Fiscal Year Ended March 31, 2024	CI

Murata Manufacturing : Presentation Material for Second Quarter of FY2020

October 30, 2020 at 02:20 am EDT

Earnings Release Conference Second Quarter of FY2020

(July 1, 2020 to September 30, 2020)

October 30, 2020

Murata Manufacturing Co., Ltd.

Topics

Net sales for the second quarter of FY2020 increased significantly, up 30.1% quarter-on-quarter. Demand for components has recovered from the impact of COVID-19 in each market earlier than expected, and sales increased in a wide range of products, such as modules and capacitors, partly due to the seasonality of products for smartphones.
Net sales of the first half of FY2020 decreased by 1.2% year-on-year due to the poor automotive market despite growing PC-related demand on the back of demand for products for teleworking and online education.

Topics

Operating income for the first half of FY2020 grew by 8.3% year- on-year mainly due to factors for increasing profit, such as productivity gains from higher capacity utilization by a production increase and a reduction in fixed costs that was a reaction from impairment loss recorded in the previous fiscal year, though there were factors that decreased profit, including a drop in product prices. Operating income ratio was 17.5%, up 1.5 points year-on- year.
The Company has revised the outlook for demand for components, changed its currency assumption, and made adjustments to the full-year forecast. Net sales are expected to be 1,490.0 billion yen (up 4.2% from the previous forecast (April 2020) ) and operating income is projected to be 250.0 billion yen (up 19.0% from the previous forecast (April 2020) ).

Second Quarter of FY2020

From July 1, 2020 to September 30, 2020 Consolidated Basis

Financial Results

Quarterly Financial Results

			Operating income		Income before income taxes

(B JPY)		(B JPY)
	Net income attributable to Murata Corporation		Sales
100.0				500.0

INCOME

80.0

SALES

400.0

60.0

300.0

40.0

200.0

20.0

100.0

0.0

FY17

FY18

FY19

FY20

Financial Results

Financial Results Overview

	FY2019					FY2020	Q on Q Change	Y on Y Change
	1st Half	1st Quarter	2nd Quarter	1st Half

	(B JPY)	(%)	(B JPY)	(%)	(B JPY)	(%)	(B JPY)	(%)	(B JPY)	(%)	(B JPY)	(%)
Net sales	760.9	100.0	326.8	100.0	425.2	100.0	752.0	100.0	+98.4	+30.1	(8.9)	(1.2)

Operating income	121.4	16.0	51.3	15.7	80.2	18.9	131.5	17.5	+28.8	+56.2	+10.1	+8.3

Income before income	124.8	16.4	53.9	16.5	79.2	18.6	133.2	17.7	+25.3	+46.9	+8.3	+6.7
taxes

Net income attributable	90.7	11.9	39.6	12.1	60.3	14.2	99.9	13.3	+20.7	+52.3	+9.1	+10.1
to Murata Corporation


Average exchange rates	108.63	107.62	106.22	106.92
yen/US dollar

Net sales increased considerably quarter-on-quarter since demand for capacitors and others for car electronics increased, demand for multilayer resin substrates and connectivity modules grew for communication partly due to the seasonality of smartphones, and products for computers and related products and AV products remained firm.
Operating income posted a significant quarter-on-quarter increase owing to productivity gains from higher capacity utilization resulting from the production output increase and cost reduction, although there were factors for decreasing profit such as a fall in product prices and the recording of quality- related expenses.
Compared to the same period of the previous financial year, operating income increased due to a decrease in fixed costs, which was a reaction from impairment loss recorded in the second quarter of FY2019.

Financial Results

Quarterly Sales, Order and Backlog

Orders mainly for products for smartphones and car electronics came back rapidly in the second quarter owing to a recovery from the plunge caused by COVID-19, resulting in the book-to-bill ratio, as a whole, exceeding 1.

(B JPY)

Backlog

Sales

Order

500.0

FY20 2Q Order

475.7 B JPY

400.0

FY20 2Q Sales

425.2 B JPY

FY20 2Q Backlog

300.0

258.6 B JPY

200.0

100.0

0.0

FY17

FY18

FY19

FY20

		7
Copyright © Murata Manufacturing Co., Ltd. All rights reserved.

Financial Results

Orders by Product

Compared to the same quarter of FY2019, orders for capacitors, other components and piezoelectric components grew. Orders increased primarily for products for smartphones, car electronics, and PCs.
Orders received by the whole company hit bottom in May and started month-over- month growth from June.

(B JPY)	Capacitors	Piezoelectric Components	Other Components	Modules
180.0

150.0
120.0
90.0
60.0
30.0
0.0
FY19
2Q	3Q

	FY20
4Q	1Q	2Q

			8
Copyright © Murata Manufacturing Co., Ltd. All rights reserved.

Financial Results

Sales by Product

	FY2019			FY2020	Q on Q Change	Y on Y Change
	1st Half	1Q	2Q	1st Half

	(B JPY)	(%)	(B JPY)	(B JPY)	(B JPY)	(%)	(B JPY)	(%)	(B JPY)	(%)
Capacitors	275.5	36.3	134.5	156.1	290.6	38.7	+21.6	+16.0	+15.1	+5.5

Piezoelectric	63.3	8.3	26.4	34.4	60.7	8.1	+8.0	+30.2	(2.6)	(4.0)
Components


Other Components	191.0	25.2	77.4	101.3	178.7	23.8	+24.0	+31.0	(12.3)	(6.4)

Modules	229.5	30.2	87.9	132.8	220.7	29.4	+44.8	+51.0	(8.8)	(3.8)

Net sales	759.3	100.0	326.2	424.5	750.7	100.0	+98.3	+30.2	(8.6)	(1.1)

Financial Results

Sales by Product [FY20 1st Half vs. FY19 1st Half]

	Multilayer Ceramic Capacitors(MLCCs) :
Capacitors	Sales increased for PCs and PC peripherals and base stations, although
+5.5%	sales decreased for car electronics due to a fall in the number of
	automobiles produced.

	Piezoelectric sensors／Ceramic resonators :
Piezoelectric	Sales decreased for car electronics.
Components	SAW Filters :
(4.0%)
	Sales increased for IoT devices and PCs.

	Lithium Ion Batteries :
Other Components	Sales of smartphones plunged amid a review of the business portfolio.
(6.4%)	Inductors :

	Sales increased for PCs.

	Multilayer resin substrates :
Modules	Sales decreased for smartphones.

(3.8%)	RF modules :

	Sales increased for smartphones.

Financial Results

Sales by Product [FY20 2nd Quarter vs. FY20 1st Quarter]

		MLCCs:
	Capacitors	Sales increased mainly due to growing demand for products for
	+16.0%	smartphones and AV equipment on top of a remarkable recovery in
		demand for products for automobiles.

	Piezoelectric	SAW Filters :
	Components
	Sales increased for smartphones.
	+30.2%


		Lithium Ion Batteries :
	Other Components	Sales increased for power tools.
	+31.0%	Inductors ／Connectors :

		Sales increased for smartphones.

	Modules	Connectivity modules ／Multilayer resin substrates ／ RF modules :
	+51.0%	Substantial growth of modules for smartphones.

Financial Results

Sales by Application

	FY2019
	1st Half
	(B JPY)	(%)
AV	34.6	4.6

Communication	376.0	49.5

Computers and	119.2	15.7
Peripherals


Automotive Electronics	132.9	17.5

Home Electronics	96.6	12.7
and Others


Net sales	759.3	100.0

		FY2020
1Q	2Q	1st Half
(B JPY)	(B JPY)	(B JPY)	(%)
15.4	20.7	36.1	4.8

159.2	222.1	381.3	50.8

68.0	71.3	139.3	18.5

42.8	66.4	109.3	14.6

40.7	44.0	84.7	11.3

326.2	424.5	750.7	100.0

	Q on Q Change	Y on Y Change

	(B JPY)	(%)	(B JPY)	(%)
+5.3	+34.7	+1.6	+4.5

+62.9	+39.5	+5.3	+1.4

+3.3	+4.8	+20.1	+16.9

+23.6	+55.1	(23.7)	(17.8)

+3.3	+8.0	(11.8)	(12.3)

+98.3	+30.2	(8.6)	(1.1)

*Based on our estimate

Financial Results

Sales by Application [FY20 1st Half vs. FY19 1st Half]

	Sales of lithium ion secondary batteries and capacitors expanded for
	video game consoles on the strength of growing demand from people
AV	staying at home.
+4.5%	Connectivity modules and lithium ion batteries for digital cameras

	decreased.

Communication	Increased sales of capacitors for base stations.
For use in smartphones, sales of multilayer resin substrates and
+1.4%

connectivity modules decreased.

Computers and Peripherals

+16.9%

Sales of capacitors and inductors rose for PCs due to demand for products used in teleworking and online education.

Increased sales of capacitors for servers.

Automotive	Demand for capacitors and sensors plunged owning to a sharp decline
Electronics
in the quantity of automobiles produced.
(17.8%)


*Based on our estimate

Financial Results

Sales by Application [FY20 2nd Quarter vs. FY20 1st Quarter]

AV	Sales of lithium ion secondary batteries and capacitors expanded for
video game consoles on the strength of growing demand from people
+34.7%
staying at home.


Communication	Sales of connectivity modules, multilayer resin substrates, capacitors,
+39.5%	SAW filters and others for smartphones significantly increased.

Computers and	Sales of capacitors and connectivity modules rose for PCs due to
Peripherals	demand for products used in teleworking and online education.
+4.8%

Automotive	Demand grew considerably for components such as capacitors,
Electronics	sensors, and electromagnetic interference (EMI) suppression filters,
+55.1%	thanks to a substantial recovery in the quantity of automobiles produced.

*Based on our estimate

Financial Results

Segment Information

		FY2019	FY2020	Y on Y Change
		1st Half	1st Half

		(B JPY)	(%)	(B JPY)	(%)	(B JPY)	(%)
	Total	550.6	100.0	546.4	100.0	(4.2)	(0.8)
Components	Revenues

Segment	117.7	21.4	138.1	25.3	+20.4	+17.4

	income

	Total	229.5	100.0	220.7	100.0	(8.8)	(3.8)
Modules	Revenues

Segment	25.8	11.3	21.7	9.8	(4.1)	(15.9)

	income

	Total	32.3	100.0	31.2	100.0	(1.1)	(3.4)
Others	Revenues

Segment	3.1	9.5	3.9	12.6	+0.9	+28.5

	income

Corporate and	Total	(51.5)	-	(46.3)	-	+5.1	-
Revenues
eliminations	Corporate	(25.2)	-	(32.2)	-	(7.1)	-
	expenses

	Total	760.9	100.0	752.0	100.0	(8.9)	(1.2)
Consolidated	Revenues

Operating	121.4	16.0	131.5	17.5	+10.1	+8.3

	income

Components
Modules

Sales declined while income increased as a whole since sales of SAW filters, lithium ion secondary batteries and others declined, and fixed costs were reduced as a reaction from impairment loss (minus 19.8 billion yen) recorded in the previous financial year.

Both sales and income decreased as a whole due to a fall in sales of multilayer resin substrates and the recording of quality-related expenses.

Financial Results

Breakdown of Operating Income Changes

[FY19 1st Half to FY20 1st Half]

(B JPY)			FY20 1H
FY19 1H		Operating
140.0		income
Operating
	131.5
	income

120.0	121.4

100.0		JPY/US$ : 108.63 YEN (FY19 1H) → 106.92YEN (FY20 1H)
		Sensitivity : 4.5 BJPY per 1 JPY/US$ change per year.
80.0		Production output : 761.0 BJPY (FY19 1H) → 767.0 BJPY (FY20 1H)

60.0
		Production	Decrease of
40.0		increase
Cost	(estimate)	semi variable
	reduction	+28.0	cost and other
	(estimate)		fixed cost
20.0		+17.0
+15.0

0.0

		Exchange rate	Increase of
		depreciation	Others
(20.0)		(estimate)
	(4.0)	expenses	(Product mix etc.)

			(1.6)	(9.3)
(40.0)		Price decline

		(estimate)
	(35.0)

(60.0)

*"Production increase" is calculated on the basis of production output excluding the effect of sales price reductions and exchange rate fluctuations.

*Regarding factors affecting profit, "Decrease in semi-variable costs and other fixed costs" includes the decrease in fixed costs as a reaction from impairment loss incurred in the second quarter of FY2019 and quality-related expenses recorded in the second quarter of FY2020.

Financial Results

Breakdown of Operating Income Changes

[FY20 1st Quarter to FY20 2nd Quarter]

(B JPY)

100.0
			FY20 2Q
			Operating
			income
80.0			80.2

			JPY/US$ : 107.62 YEN (FY20 1Q) → 106.22 YEN (FY20 2Q)
	FY20 1Q		Sensitivity : 4.5 BJPY per 1 JPY/US$ change per year.
		Production output : 355.0 BJPY (FY20 1Q) → 412.0 BJPY (FY20 2Q)
60.0	Operating
income
	51.3
			Production
			increase
40.0			(estimate)
		+35.0

		Cost
20.0		reduction
		(estimate)	Others
		+10.0
		(Product mix etc.)

			+4.8
0.0

	Price decline	Exchange rate	Increase of
	(estimate)	depreciation
	(estimate)	(2.0)	expenses	Increase of
(5.0)	(1.9)
(20.0)				semi variable

				cost and other
				fixed cost
				(12.0)

*"Production increase" is calculated on the basis of production output excluding the effect of sales price reductions and exchange rate fluctuations.

Financial Results

Cash Flows

	FY2019
	1st Half
	(B JPY)
Operating activities	136.1

Investing activities	(108.8)

Financing activities	53.8

Effect of exchange	0.5
rate changes


Cash and cash	299.4
equivalents


Free Cash Flows	27.3

Capital expenditures	(114.9)

Depreciation and	68.3
amortization

FY2020 1st Half

(B JPY)

114.0

(86.6)

(11.1)

(1.7)

316.9

27.4

(91.9)

69.8

Y on Y Change

(B JPY)

(22.1)

+22.2

(64.9)

(2.3)

+17.5

+0.1

+23.0

+1.6

Although net income increased year-on-year, net cash provided by operating activities decreased due to an increase in inventory.

The factor behind a decrease in net cash used in financing activities is the issuance of bonds in the previous financial year.

Projected Financial Results for FY2020

(From April 2020 to March 2021)

Projections

Projection of Demand

		FY2019	FY2020	FY2020
		Actual	Projections(April)	Projections(October)
SmartPhones (units)	1,370	M	1,240	M	1,280	M

	PCs (units)	400	M	390	M	410	M

	Desktop	100	M	90	M	80	M
	Notebook	160	M	160	M	180	M
	Tablet	140	M	140	M	150	M

Vehicles (units)	83	M	67	M	71	M

Y on Y Change

(7%)

+3%

(15%)

+12%

+4%

(15%)

SmartPhones
PCs
Vehicles

Demand recovered from COVID-19 earlier than expected, and the premise for quantity was revised to a 7% year-on-year decrease.

As demand for notebooks and tablets is projected to grow on the back of teleworking and online education, the premise for quantity was revised to a 3% year-on-year increase.

Demand recovered from COVID-19 earlier than expected, and the premise for quantity was revised to a 15% year-on-year decrease.

Projections

Projected Sales by Product

	FY2020	FY2020 2nd Half
	Projections	Projections
	(Growth Ratio against FY19) (Growth Ratio against FY20 1H)

Capacitors	+2%	(3%)

Piezoelectric Components	(7%)	(2%)

Other Components	(4%)	(4%)

Modules	(7%)	+1%

Total	(3%)	(2%)

Projections

Projected Sales by Application

	FY2020	FY2020 2nd Half
	Projections	Projections
	(Growth Ratio against FY19) (Growth Ratio against FY20 1H)

AV	+13%	(9%)

Communication	(4%)	Flat

Computers and Peripherals	+7%	(23%)

Automotive Electronics	(9%)	+19%

Home Electronics and Others	(8%)	(2%)

Total	(3%)	(2%)

*Based on our estimate

Projections

Projected Financial Results for FY2020

	FY2019		Previous (April 2020)	FY2020	Revised (October 2020)		FY2020
	Actual		1st Half	2nd Half	Projections	1st Half Results	2nd Half Projections	Projections
	(B JPY)	(%)	(B JPY)	(B JPY)	(B JPY)	(B JPY)	(%)	(B JPY)	(%)	(B JPY)	(%)
Net sales	1,534.0		100.0	681.0	749.0	1,430.0	752.0	100.0	738.0	100.0	1,490.0	100.0

Operating income	253.2		16.5	97.0	113.0	210.0	131.5	17.5	118.5	16.1	250.0	16.8

Income before income	254.0		16.6	98.0	114.0	212.0	133.2	17.7	118.8	16.1	252.0	16.9
taxes

Net income attributable	183.0		11.9	69.3	80.7	150.0	99.9	13.3	89.1	12.1	189.0	12.7
to Murata Corporation


Average exchange rates	108.75		107.00		106.92	105.00	105.96
yen/US dollar

Net sales for FY2020 have been revised upward from the previous forecast as sales of modules and capacitors are projected to increase mainly due to an earlier business recovery from COVID- 19 in the smartphone and car electronics markets as well as expanded PC-related demand.
Operating income for FY2020 has also been revised upward mainly due to productivity gains from higher capacity utilization resulting from an increase in production output.
Net sales for the second half is forecast to fall from the first half because demand for components for smartphones and car electronics is projected to grow in the second half, but it is also assumed that there could be a market contraction as a reaction from the brisk demand in the first half and that demand for products for PCs will run its course in the latter half of the year.

Projections

Breakdown of Operating Income Changes

[FY20 Projection(April 2020) to FY20 Projection]

(B JPY)

300.0			FY20
			Operating
			income
	FY20		(Projection)
250.0	Operating		250.0
income
	(Projection
	April 2020)
	210.0
200.0
	JPY/US$ : 107.00 YEN (FY20 projection April 2020) → 105.96 YEN (FY20 projection)
150.0	Sensitivity : 4.5 BJPY per 1 JPY/US$ change per year.
Production output : 1,449.0 BJPY (FY20 projection April 2020) → 1,510.0 BJPY (FY20 projection)
100.0
	Production
50.0	increase	Price decline	Decrease of
(estimate)
	+28.0	(estimate)	depreciation
		+20.0	expenses
			+11.0
0.0

		Cost	Exchange rate	Increase of	Others
		reduction	(estimate)	semi variable (Product mix etc.)
		(estimate)	(5.0)	cost and other	(5.0)
(50.0)	(4.0)		fixed cost
			(5.0)

*"Production increase" is calculated on the basis of production output excluding the effect of sales price reductions and exchange rate fluctuations.

Projections

Breakdown of Operating Income Changes

[FY19 to FY20 Projection]

(B JPY)			FY20
300.0	FY19
	Operating

	Operating		income
	income		(Projection)
250.0	253.2		250.0

200.0		JPY/US$ : 108.75 YEN (FY19) → 105.96 YEN (FY20 projection)

		Sensitivity : 4.5 BJPY per 1 JPY/US$ change per year.
150.0		Production output : 1,523.0 BJPY (FY19) → 1,510.0 BJPY (FY20 projection)

100.0		Production
	Cost
	Increase	Decrease of
	reduction
	(estimate)	semi variable
	(estimate)
50.0	+46.0	cost and other
+40.0

			fixed cost
			+22.0
0.0

		Exchange rate	Increase of
		depreciation	Others
		(estimate)
		expenses
(50.0)		(13.0)	(Product mix etc.)
	(6.7)
	(21.5)


		Price decline
(100.0)		(estimate)
	(70.0)

*"Production increase" is calculated on the basis of production output excluding the effect of sales price reductions and exchange rate fluctuations.

Projections

Projected Financial Results for FY2020

	FY2020 1st Half	FY2020 2nd Half	FY2020
	Results	Projections	Projections
Depreciation and amortization	69.8 B JPY	77.2 B JPY	147.0 B JPY

R & D expenses	51.0 B JPY	54.0 B JPY	105.0 B JPY

Capital expenditures	84.0 B JPY	116.0 B JPY	200.0 B JPY

Average exchange rate	106.92	105.00	105.96
(JPY/USD)


Average exchange rate	121.29	122.00	121.65
(JPY/EUR)

[Exchange rate sensitivity]

Net sales: 9.0 BJPY per 1 JPY/US$ change per year.

Operating income: 4.5 BJPY per 1 JPY/US$ change per year.

Please note that this forecast is based on the premise that large-scale economic lockdowns, which took place around the world in early spring this year, will not be implemented again.

Projections

Quarterly Financial Results

INCOME

(B JPY)	Operating income	Income before income taxes


100.0		Net income attributable to Murata Corporation	Sales

		403.4	410.2	425.2
			395.0
80.0
359.0	357.6				362.9	343.0



60.0							326.8

40.0
20.0
0.0	FY19				FY20
FY18
4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
							(Projection)	(Projection)

(B JPY)

500.0

SALES

400.0

300.0

200.0

100.0

0.0

Dividends per Share

FY2020 projected annual dividends per share

110 JPY per share

(Interim: 55 JPY per share, Year-end: 55 JPY per share)

*13 yen increase of year-end dividend per share

FY2019 annual dividends per share 97 JPY per share
(Interim: 47 JPY per share, Year-end: 50 JPY per share)

Note: The above projections are based on our view of the current business environment and our projections for FY2020.

Return to Shareholders

Dividend In order to further implement our basic policy of striving for a stable increase in dividends, we have adopted DOE (Dividend on equity ratio) as our shareholder return indicator. From FY2020, we aim to achieve DOE of 4% or higher over the medium term with reference to dividend payout ratio of approximately 30%.
Share buyback As a means of returning profits to shareholders, we have been buybacking shares in a timely manner to improve capital efficiency.

(B JPY)																		Payout	DOE
				Annual dividends			Share buyback					ratio
80.0												80%	8%
						Payout ratio				Dividend on equity(DOE)
70.0																		70	70%	7%

60.0																60	62		60%	6%
															55
50.0																		50%	5%

40.0	32												44	47					40%	4%
27										38
30.0		16		15	15			15									30% 3%
									28
20.0																		20%	2%
			20	22	22		21	21	21
			16
10.0	12	11				15												10%	1%


0.0	FY03	FY04	FY05	FY06	FY07	FY08	FY09	FY10	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	FY20	0%	0%

																		(estimate)
										Copyright © Murata Manufacturing Co., Ltd. All rights reserved.			29

This report contains forward-looking statements concerning Murata Manufacturing Co., Ltd. and its group companies' projections, plans, policies, strategies, schedules, and decisions. These forward-looking statements are not historical facts; rather, they represent the assumptions of the Murata Group (the "Group") based on information currently available and certain assumptions we deem as reasonable. Actual results may differ materially from expectations due to various risks and uncertainties. Readers are therefore requested not to rely on these forward-looking statements as the sole basis for evaluating the Group. The Company has no obligation to revise any of the forward-looking statements as a result of new information, future events or otherwise.

Risks and uncertainties that may affect actual results include, but are not limited to, the following:

economic conditions of the Company's business environment, and trends, supply-demand balance, and price fluctuations in the markets for electronic devices and components; (2) price fluctuations and insufficient supply of raw materials; (3) exchange rate fluctuations; (4) the Group's ability to provide a stable supply of new products that are compatible with the rapid technical innovation of the electronic components market and to continue to design and develop products and services that satisfy customers; (5) changes in the market value of the Group's financial assets; (6) drastic legal, political, and social changes in the Group's business environment; and (7) other uncertainties and contingencies.

The Company undertakes no obligation to publicly update any forward-looking statements included in this report.

Thank you

Appendixes

Breakdown of Operating Income Changes

[FY20 1st Half Projection(April 2020) to FY20 1st Half]

(B JPY)			FY20 1H
		Operating
140.0			income
			131.5
120.0	FY20 1H
	Operating
	income
(Projection)
100.0	97.0
	JPY/US$ : 107.00 YEN (FY20 1H Projection) → 106.92 YEN (FY20 1H)
80.0	Sensitivity : 4.5 BJPY per 1 JPY/US$ change per year.
Production output : 696.0 BJPY (FY20 1H Projection) → 767.0 BJPY (FY20 1H)
60.0	Production

	increase
	(estimate)
40.0	+37.0
			Decrease of
20.0	Price decline		depreciation
	(estimate)	Exchange rate	expenses
	+8.2
	+6.0	(estimate)
0.0		+0.0

	Cost	Increase of
	reduction	Others
	(estimate)	semi variable	(Product mix etc.)
(20.0)	(2.0)	cost and other	(6.7)

		fixed cost
		(8.0)

*"Production increase" is calculated on the basis of production output excluding the effect of sales price reductions and exchange rate fluctuations.

Appendixes

Breakdown of Operating Income Changes

[FY20 1st Half to FY20 2nd Half Projection]

(B JPY)	FY20 1H
Operating			FY20 2H
140.0	income
		Operating
	131.5			income
				(Projection)
120.0				118.5

100.0
80.0		JPY/US$ : 106.92 YEN (FY20 1H) → 105.00 YEN (FY20 2H projection)
		Sensitivity : 4.5 BJPY per 1 JPY/US$ change per year.
		Production output : 767.0 BJPY (FY20 1H) → 743.0 BJPY (FY20 2H projection)
60.0
40.0	Cost
reduction

	(estimate)
20.0	+22.0	Production		Decrease of
	increase		semi variable
		(estimate)		cost and other
		+6.0		fixed cost
0.0				+1.0

		Exchange rate	Increase of	Others
		(estimate)	(Product mix etc.)
(20.0)		(4.0)	depreciation	(2.7)
			expenses
		Price decline	(7.3)

(40.0)		(estimate)
		(28.0)

*"Production increase" is calculated on the basis of production output excluding the effect of sales price reductions and exchange rate fluctuations.

Appendixes

Financial Data (1/3)

													(B JPY)
		FY2017			FY2018			FY2019		FY2020
	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q
Sales	344.7	413.5	338.7	345.5	442.9	427.6	359.0	357.6	403.4	410.2	362.9	326.8	425.2

Operating income	58.7	45.1	17.6	48.2	91.3	85.6	41.7	62.6	58.8	79.5	52.4	51.3	80.2

Income before income	67.4	42.6	15.4	49.9	92.8	79.7	44.9	63.2	61.6	78.0	51.3	53.9	79.2
taxes


Net income attributable to	57.9	29.4	25.6	39.0	69.3	60.1	38.5	46.8	43.9	56.1	36.2	39.6	60.3
Murata Corporation


Capital expenditures	71.6	89.9	83.9	77.7	78.8	72.7	62.4	52.9	62.0	81.4	85.4	40.2	43.8

Depreciation and	32.9	39.8	41.3	26.9	30.5	32.3	34.7	33.6	34.6	35.7	36.4	34.0	35.9
amortization


R & D expenses	22.9	23.8	25.7	26.0	24.3	25.1	26.2	26.1	25.3	24.7	26.4	24.8	26.2


Average exchange	111.04	112.98	108.30	109.07	111.46	112.90	110.21	109.90	107.35	108.76	108.97	107.62	106.22
rates (yen)

Appendixes

Financial Data (2/3)

(B JPY)

Sales by Product

			FY2017			FY2018			FY2019		FY2020
		2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q
	Capacitors	112.7	126.9	113.9	126.5	147.2	158.3	142.3	137.7	137.8	145.7	138.2	134.5	156.1

	Piezoelectric	41.0	38.9	34.6	38.1	38.5	32.1	30.0	31.4	31.9	33.6	32.3	26.4	34.4
	Components

	Other Components	73.0	105.5	89.2	93.8	108.3	99.2	90.9	92.4	98.6	92.8	79.2	77.4	101.3

Components	226.7	271.2	237.7	258.3	293.9	289.6	263.2	261.5	268.3	272.2	249.8	238.2	291.8

Modules	117.2	141.4	99.5	86.5	148.2	137.1	95.0	95.2	134.3	137.0	112.1	87.9	132.8

Net sales	343.9	412.6	337.2	344.8	442.1	426.6	358.2	356.7	402.5	409.2	361.9	326.2	424.5

Sales by Application

AV	17.2	19.5	16.2	17.3	19.7	17.5	15.0	16.9	17.7	14.8	11.6	15.4	20.7

Communication	190.0	231.1	161.9	157.4	235.5	213.3	154.6	163.9	212.1	226.1	190.0	159.2	222.1

Computers and	51.9	52.7	51.3	56.4	65.3	68.0	59.5	58.6	60.6	58.1	53.2	68.0	71.3
Peripherals

Automotive Electronics	47.5	53.3	54.7	59.6	63.0	66.0	68.5	66.8	66.1	66.2	64.4	42.8	66.4

Home Electronics and	37.2	56.0	53.1	54.1	58.6	61.9	60.6	50.6	46.0	43.9	42.6	40.7	44.0
Others

Net sales	343.9	412.6	337.2	344.8	442.1	426.6	358.2	356.7	402.5	409.2	361.9	326.2	424.5

Sales by Product

The Americas

Europe

Greater China

Asia and Others

Overseas total

Japan

Net sales

34.0	56.3	39.0	38.9	76.3	75.1	45.6	47.2	57.9	45.8	38.7	28.6	48.7
23.5	29.2	30.9	32.9	32.2	33.2	41.5	36.1	31.7	30.4	33.8	21.2	31.8
201.0	234.4	175.6	181.0	231.5	216.1	165.7	172.7	208.1	237.2	192.1	198.8	244.1
60.7	59.0	61.5	60.3	66.4	64.2	68.4	63.0	69.6	60.8	64.6	48.7	67.7
319.2	378.9	307.0	313.1	406.4	388.6	321.2	319.0	367.3	374.3	329.3	297.2	392.3
24.7	33.7	30.2	31.8	35.7	38.0	36.9	37.8	35.3	34.9	32.6	28.9	32.2
343.9	412.6	337.2	344.8	442.1	426.6	358.2	356.7	402.5	409.2	361.9	326.2	424.5

Appendixes

Financial Data (3/3)

														(B JPY)
			FY2017			FY2018			FY2019		FY2020
		2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q
	Total	236.4	282.4	248.0	268.6	305.6	298.2	267.6	271.7	278.8	285.2	262.5	245.6	300.8
Components	revenue

Segment	56.9	72.1	44.6	62.6	87.5	84.9	77.2	67.5	50.1	68.9	63.1	58.9	79.2

	income

	Total	117.2	141.4	99.5	86.5	148.2	137.1	95.0	95.2	134.3	137.0	112.1	87.9	132.8
Modules	revenue

Segment	12.1	(15.7)	(16.6)	(0.5)	16.9	14.0	(15.9)	7.9	17.9	21.9	1.7	6.9	14.8

	income

	Total	24.0	20.1	24.2	24.4	33.6	20.8	23.6	16.9	15.4	14.0	12.9	14.4	16.8
Others	revenue

Segment	2.7	2.2	2.7	2.9	3.4	2.2	2.1	1.5	1.6	1.2	1.5	1.9	2.0

	income

Corporate and	Total	(32.9)	(30.4)	(33.0)	(34.0)	(44.5)	(28.5)	(27.2)	(26.4)	(25.1)	(26.0)	(24.7)	(21.1)	(25.2)
revenue

eliminations	Corporate	(13.0)	(13.5)	(13.1)	(16.8)	(16.5)	(15.5)	(21.6)	(14.3)	(10.8)	(12.5)	(13.9)	(16.4)	(15.9)
	expenses

	Total	344.7	413.5	338.7	345.5	442.9	427.6	359.0	357.6	403.4	410.2	362.9	326.8	425.2
Consolidated	revenue

Operating	58.7	45.1	17.7	48.2	91.3	85.6	41.7	62.6	58.8	79.5	52.4	51.3	80.2

	income

Appendixes

Effects of COVID-19

(As of July 1, 2020)

Business bases	Supplement

Murata Manufacturing Company, Ltd.	Date of confirming infections: July 23,30 October 6, 2020

Kanazawa Murata Manufacturing, Ltd. Sendai Plant (JAPAN)	Date of confirming infections: October 3, 2020

Murata Manufacturing Company, Ltd. Yasu Plant (JAPAN)	Date of confirming infections: September 17,20, 2020

Fukui Murata Manufacturing Co., Ltd. (JAPAN)	Date of confirming infections: August 25, 2020

Toyama Murata Manufacturing Co., Ltd. (JAPAN)	Date of confirming infections: August 5, 2020

Okayama Murata Manufacturing Co., Ltd. (JAPAN)	Date of confirming infections: July 15, 2020
	The operation of this business base was suspended from
	July 15 through July 16.

Murata Manufacturing Company, Ltd. Yokaichi Plant (JAPAN)	Date of confirming infections: July 15, 2020
	The operation of this business base was suspended from
	July 8 through July 10.

In accordance with government policies and guidelines, Murata is committed to doing our best to prevent infection with and minimize the spread of COVID-19, giving top priority to the well-being and safety of local residents, customers, suppliers, and all our employees.

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Murata Manufacturing Co. Ltd. published this content on 30 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2020 06:19:02 UTC

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Chart Murata Manufacturing Co., Ltd

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Company Profile

Murata Manufacturing Co., Ltd. is one of the world leaders in design, production and marketing of innovative electronic components for the telecommunications and automobile sectors, etc. Net sales break down by family of products as follows: - electronic components (74.4%): capacitors, piezoelectric components, etc.; - modules (22.4%); - other (3.2%). Sales break down geographically as follows: Japan (9.2%), China (54.8%), Asia (15.6%), America (11.4%) and Europe (9%).

Sector

Electronic Equipment & Parts

Calendar

2024-07-30 - Q1 2024 Earnings Release (Projected)

Related indices

Nikkei 225

More about the company

Income Statement Evolution

More financial data

Ratings for Murata Manufacturing Co., Ltd

Trading Rating

Investor Rating

ESG Refinitiv

A-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

2,867 JPY

Average target price

3,389 JPY

Spread / Average Target

+18.20%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Electronic Component

	1st Jan change	Capi.
MURATA MANUFACTURING CO., LTD	-4.21%	34.28B
AMPHENOL CORPORATION	+21.55%	71.39B
HON HAI PRECISION INDUSTRY CO., LTD.	+48.33%	64.41B
LUXSHARE PRECISION INDUSTRY CO., LTD.	-16.43%	28.25B
JABIL INC.	-7.17%	14.29B
AVIC JONHON OPTRONIC TECHNOLOGY CO.,LTD.	-13.03%	9.9B
LENS TECHNOLOGY CO., LTD.	+5.83%	9.21B
SUZHOU TFC OPTICAL COMMUNICATION CO., LTD.	+71.16%	8B
YAGEO CORPORATION	+3.02%	7.91B
EOPTOLINK TECHNOLOGY INC., LTD.	+69.91%	7.76B

Electronic Component

Murata Manufacturing Co., Ltd

Equities

6981

JP3914400001

Electronic Equipment & Parts

Murata Manufacturing : Presentation Material for Second Quarter of FY2020

EPS Revisions