Presentation Q&A

Q: Would the impact of foreign exchange sensitivity for operating income as 30B JPY per 1 JPY/US$ fluctuate with the current depreciation of the yen against the dollar?

A: If the composition of product mix and currency mix of sales and expenses do not change, we expect the foreign exchange sensitivity will not fluctuate. However, the potential fluctuation for 12Q4 may be partial because we have made foreign exchange forwards under yen appreciation. Furthermore, there would be some impacts to some extent by the relationship with the customers and the competitive environment.

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A: We are receiving equivalent level of order intake in January compared with the previous quarter owing to early-order intake for Chinese new year in February. However, we expect that it would decrease in February as a rebound.

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A: We expect to maintain the inventory amount as the same level as the end of December.

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A: We think that the current inventory level is appropriate. We expect the production amount would be the same level along with decreased sales of 12Q4. However, in the case of increased demand in spring, we may increase the inventory to some extent to cope with the demand.

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A: The sales was better than our original expectation except foreign exchange. However, the impact was limited because sales increase came from module products with lower margin.

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A: We forecast as follows.

Mobile phones total 12Q3: 450Munits 12Q4: 390Munits

  • Smartphones 12Q3: 230Munits 12Q4: 190Munits
  • LTE handsets 12Q3: 60Munits 12Q4: 40Munits

PCs total 12Q3: 130Munits 12Q4: 110Munits

  • Tablet devices 12Q3: 40Munits 12Q4: 30Munits

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A: Capex is different for each type of model of module and it differentiate according to its growth. Thus, we cannot mention Capex level for the next year because we are under the process of budget organization.

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A: We think it would be possible to average module products sales by broadening a number of customer.

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This Q&A 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 Q&A.