Earnings Release Conference
First Quarter of FY2016
(April 1, 2016 to June 30, 2016)
July 28, 2016
Murata Manufacturing Co., Ltd.
http://www.murata.com/ir/library/index.html
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Copyright © Murata Manufacturing Co., Ltd. All rights reserved.
Topics of Financial Results for
FY2016 First Quarter
• Sales for the first quarter could not achieve our plan by sales decrease
for specific customers and high-value of yen, while sales for automotive
and multi-band smartphone in China steadily increased.
• Operating income of the first quarter was down 24% from the same
period in FY2015 because of exchange fluctuation and cost increase
relevant to capital investment and R&D investment for demand increase
in the future.
• Operating income ratio was 18.7%, down 4.1 points from the same
period in FY2015.
• It was 39% of the projected finance results for the first half of FY2016
announced on April 28th.
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Copyright © Murata Manufacturing Co., Ltd. All rights reserved.
1. First Quarter of FY2016
From April 1, 2016 to June 30, 2016
Consolidated Basis
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Copyright © Murata Manufacturing Co., Ltd. All rights reserved.
Quarterly Financial Results
(B JPY)
100.0
400.0
75.0
300.0
SALES
INCOME
(B JPY)
50.0
200.0
Operating
income
Income bef ore
income taxes
25.0
100.0
Net income
attributable to
Murata
Corporation
0.0
0.0
FY13
1Q
4
FY13
2Q
FY13
3Q
FY13
4Q
FY14
1Q
FY14
2Q
FY14
3Q
FY14
4Q
FY15
1Q
FY15
2Q
FY15
3Q
FY15
4Q
FY16
1Q
Copyright © Murata Manufacturing Co., Ltd. All rights reserved.
Sales
Financial Results Overview
FY2015
4th Quarter
FY2015
1st Quarter
(a)
(b)
(B JPY)
(%)
Y on Y
Change
(c)
(B JPY)
(%)
Q on Q
Change
(c) vs. (a)
(%)
(B JPY)
(c) vs. (b)
(B JPY)
(%)
(B JPY)
(%)
(0.2)
280.8
100.0
261.4
100.0
260.9
100.0
(19.9)
(7.1)
(0.4)
Operating income
64.0
22.8
40.0
15.3
48.7
18.7
(15.3)
(23.9)
+8.7
+21.8
Income before
income taxes
65.0
23.1
39.2
15.0
50.2
19.2
(14.8)
(22.8)
+11.1
+28.2
Net income attributable
to Murata Corporation
46.6
16.6
27.6
10.6
37.7
14.4
(8.9)
(19.1)
+10.0
+36.3
Net sales
Average exchange rates
Yen／US dollar
5
FY2016
1st Quarter
121.37
115.45
108.25
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Quarterly Sales, Order and Backlog
(B JPY)
350.0
Backlog
Sales
Order
FY16 1Q Sales
260.9 B JPY
300.0
250.0
FY16 1Q Order
242.5 B JPY
200.0
FY16 1Q Backlog
112.3 B JPY
150.0
100.0
50.0
0.0
FY13
1Q
6
FY13
2Q
FY13
3Q
FY13
4Q
FY14
1Q
FY14
2Q
FY14
3Q
FY14
4Q
FY15
1Q
FY15
2Q
FY15
3Q
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FY15
4Q
FY16
1Q
Orders by Product
(B JPY)
140.0
120.0
100.0
80.0
60.0
Capacitors
40.0
Piezoelectric
Components
Other Components
20.0
Communication
Modules
0.0
FY15
1Q
7
FY15
2Q
FY15
3Q
FY15
4Q
FY16
1Q
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Power Supplies and
Other Modules
Sales by Product
FY2015
1st Quarter
FY2015
4th Quarter
(a)
(b)
Y on Y
Change
(c)
Q on Q
Change
(c) vs. (a)
(c) vs. (b)
(B JPY)
(%)
(B JPY)
(%)
(B JPY)
(%)
(B JPY)
(%)
(B JPY)
(%)
Capacitors
89.1
31.8
85.5
32.8
84.3
32.4
(4.9)
(5.5)
(1.2)
(1.4)
Piezoelectric
Components
38.2
13.7
38.3
14.7
44.8
17.2
+6.5
+17.1
+6.5
+16.9
Other Components
56.6
20.2
48.5
18.6
50.8
19.5
(5.8)
(10.2)
+2.4
+4.9
83.0
29.7
76.2
29.3
69.2
26.6
(13.8)
(16.6)
(7.1)
(9.3)
13.0
4.6
12.0
4.6
11.1
4.3
(1.9)
(14.4)
(0.8)
(7.0)
280.0
100.0
260.4
100.0
260.1
100.0
(19.8)
(7.1)
(0.3)
(0.1)
Communication
Modules
Power Supplies
and Other Modules
Net sales
8
FY2016
1st Quarter
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Sales by Product
FY16 First Quarter vs. FY15 Fourth Quarter
Capacitors
(1.4%)
Multilayer Ceramic Capacitors : Sales of ultra-compact MLCCs and highcapacitance MLCCs for smartphone decreased because of high-value of yen,
while sales for car electronics, computers and peripherals increased.
Piezoelectric
Components
+16.9%
SAW filters : Sales greatly increased thanks to demand increase for LTE
smartphones and advancing multi-band in China.
Other Components
+4.9%
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Inductors(Coil) : Sales of High frequency coils increased for smartphones.
Connector : Sales decreased for smartphones.
Communication
Modules
(9.3%)
Wireless modules and RF sub module : Sales decreased by high-value of
yen and decrease of production for smartphone and tablets.
Power Supplies and
Other Modules
(7.0%)
Power Supplies : Sales decreased for office automation equipment.
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Sales by Application
FY2015
1st Quarter
FY2015
4th Quarter
(a)
AV
Communication
Computers and
Peripherals
Automotive
Electronics
Home Electronics
and Others
Net sales
FY2016
1st Quarter
(b)
Y on Y
Change
(c)
Q on Q
Change
(c) vs. (b)
(c) vs. (a)
(%)
(B JPY)
(%)
(B JPY)
(%)
(B JPY)
(%)
11.8
4.2
10.2
3.9
10.7
4.1
(1.1)
(9.6)
+0.5
+4.9
164.0
58.6
145.3
55.8
145.5
55.9
(18.5)
(11.3)
+0.2
+0.1
39.2
14.0
38.6
14.8
37.8
14.5
(1.5)
(3.7)
(0.8)
(2.2)
36.6
13.1
38.7
14.9
39.0
15.0
+2.4
+6.5
+0.3
+0.9
28.3
10.1
27.6
10.6
27.2
10.5
(1.2)
(4.1)
(0.5)
(1.7)
280.0
100.0
260.4
100.0
260.1
100.0
(19.8)
(7.1)
(0.3)
(0.1)
*Based on our estimate
10
(B JPY)
(B JPY)
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(%)
Sales by Application
FY16 First Quarter vs. FY15 Fourth Quarter
AV
+4.9%
Communication
+0.1%
Computers and
Peripherals
(2.2%)
Automotive Electronics
+0.9%
Sales of MLCCs increased for gaming device and set-top box.
Sales of SAW filters significantly increased for smartphones in China. High
frequency coils also increased.
High-value of yen brought negative impact for the sales. Sales of Wireless
modules, RF sub modules decreased.
Sales of Wireless modules for tablets decreased.
Sales of Shock sensors increased for HDD.
Sales of MLCCs increased for car advanced electrification.
Sales of MEMS sensor increased for safety devices.
Sales of power supply decreased for car navigation.
*Based on our estimate
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Breakdown of Operating Income Changes
FY15 Fourth Quarter to FY16 First Quarter
（B JPY）
60.0
40.0
FY16 1Q
Operating
income
+48.7
FY15 4Q
Operating
income
+40.0
JPY/US$ ： 115.45YEN(FY15 4Q)→108.25YEN(FY16 1Q)
Sensitivity ： 3.5 BJPY per 1 JPY/US$ change per year.
20.0
Cost
reduction
(estimate)
+4.0
Production
increase
(estimate)
+8.0
Decrease of
depreciation
expenses
+3.5
Decrease of
semi variable
Others
cost and other (Product mix etc.)
f ixed cost
+4.2
+2.0
0.0
Price decline Exchange rate
(estimate)
(estimate)
(6.0)
(7.0)
(20.0)
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Breakdown of Operating Income Changes
FY15 First Quarter to FY16 First Quarter
（B JPY）
80.0
FY15 1Q
Operating
income
+64.0
FY16 1Q
Operating
income
+48.7
60.0
40.0
20.0
Cost
reduction
(estimate)
+17.0
JPY/US$ ： 121.37 YEN(FY15 1Q)→108.25 YEN(FY16 1Q)
Sensitivity ： 3.5 BJPY per 1 JPY/US$ change per year.
Production
increase
(estimate)
+7.0
Others
(Product mix etc.)
+4.2
0.0
Exchange rate
(estimate)
(12.0)
(20.0)
Increase of
depreciation
expenses
(3.5)
Increase of
semi variable
cost and other
f ixed cost
(4.0)
Price decline
(estimate)
(24.0)
(40.0)
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2. Projected Financial Results for FY2016
(From April 2016 to March 2017)
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Copyright © Murata Manufacturing Co., Ltd. All rights reserved.
Projected Financial Results for FY2016
FY2015
Actual
(B JPY)
1st
Half
(%)
(B JPY)
2nd
Half
(B JPY)
FY2016
Projections
(B JPY)
Change
(%)
(B JPY)
(%)
1210.8
100.0
620.0
605.0
1225.0
100.0
+14.2
+1.2
Operating income
275.4
22.7
125.0
115.0
240.0
19.6
(35.4 )
(12.9 )
Income before income
taxes
279.2
23.1
126.0
115.0
241.0
19.7
(38.2 )
(13.7 )
Net income attributable to
Murata Corporation
203.8
16.8
93.0
85.0
178.0
14.5
(25.8 )
(12.6 )
Net sales
Average exchange rates
Yen／US dollar
120.14
110.00
・The Company did not revise the projected results for the year ending March 31, 2017,
which were announced on April 28, 2016.
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Copyright © Murata Manufacturing Co., Ltd. All rights reserved.
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:
(1) 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.
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Thank you
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Copyright © Murata Manufacturing Co., Ltd. All rights reserved.