Murata Manufacturing : Earnings call transcript (Presentation/Q&A session)

Murata Manufacturing Co., Ltd.

Financial Results Briefing for the Fiscal Year Ended March 2023

April 28, 2023

Event Summary

[Company Name]	Murata Manufacturing Co., Ltd.
[Company ID]	6981-QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Financial Results Briefing for the Fiscal Year Ended March 2023
[Fiscal Period]	FY2022 Q4
[Date]	April 28, 2023
[Time]	15:30 - 16:33
	(Total: 63 minutes, Presentation: 22 minutes, Q&A: 41 minutes)
[Venue]	Webcast
[Number of Speakers]	3
	Norio Nakajima	President, Representative Director
	Masanori Minamide	Executive Vice President (Board Member),
		General Manager, Corporate Unit
	Nagato Omori	Senior Vice President, General Manager,
		Ceramic Capacitor Business Unit
[Analyst Names]	Daiki Takayama	Goldman Sachs
	Akihiko Uchino	Mitsubishi UFJ Morgan Stanley Securities
	Fumihide Goto	Mizuho Securities
	Shingo Hirata	UBS Securities
	Manabu Akizuki	Nomura Securities
	Takayuki Naito	Citigroup Global Markets

p. 1

Presentation

Moderator: As it is time, we will now commence Murata Manufacturing Co., Ltd.'s financial results briefing for the fiscal year ended March 2023.

Thank you very much for joining us today despite your busy schedules.

First, let me introduce the attendees from our company. We have Representative Director and President, Norio Nakajima.

Nakajima: Thank you for having me.

Moderator: Next, we have Executive Vice President and General Manager of the Corporate Unit, Masanori Minamide.

Minamide: Thank you for having me.

Moderator: Next, we have Senior Vice President and General Manager of the Ceramic Capacitors Business Unit, Nagato Omori.

Omori: Thank you for having me.

Moderator: Other IR members are also in attendance.

Nakajima: Allow me to say a few words at the outset. As we disclosed yesterday, it was confirmed that our data server was accessed on March 16. As a result of our investigation up until today, we have found no impact on our financial data. Therefore, we will proceed with the financial results briefing as scheduled. We apologize for any concerns this may have caused. Thank you for your understanding.

Moderator: Today's schedule will begin with our company's explanation of the financial results, followed by a Q&A session starting around 3:50 PM. The materials can be found on our website under the IR Library in the investor relations section. Additionally, timely disclosure of the briefing materials is being carried out, and they can also be viewed through the Tokyo Stock Exchange's Timely Disclosure Information Viewing Service. We will refer to the page numbers of the financial results briefing materials during our explanation, so please refer to them if you are joining by phone.

Now, I will hand it over to Minamide to explain the financial results.

p. 2

Minamide: Thank you for your continued support of our IR activities. Now, let's begin the financial results presentation.

Please look at page two. This is a summary of the results for FY2022.

First, net sales decreased by 6.9% compared to the previous fiscal year, amounting to JPY1,686.8 billion. Operating income decreased by 29.8% to JPY297.9 billion. This is due to a decline in sales of capacitors and components for consumer electronics, as well as parts for communication devices, from the middle of the fiscal year. The main factor contributing to the decrease in profits is the loss in productivity from lower capacity utilization caused by the decrease in production volume.

As for the most recent earnings forecast announced in February, the results are almost as we announced.

Regarding shareholder returns, we plan to distribute a year-end dividend of JPY75 per share, as planned.

p. 3

Please turn to page three. This is a summary of the earnings forecast for FY2023.

Net sales are expected to decrease by 2.8% compared to the previous fiscal year, and operating income is planned to decrease by 26.1% to JPY220 billion. We will explain the factors behind the changes in net sales and profits later.

For capital investment, we plan to allocate JPY220 billion this fiscal year to prepare for the medium-term expansion of component demand.

Regarding shareholder returns, we plan to distribute a dividend of JPY150 per share, the same amount as the previous fiscal year.

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