Mid-term Direction 2018

With the trust, cooperation and support from its customers and stakeholders, Murata achieved more than 1 trillion yen in sales in fiscal 2014. Taking this as a major milestone, we formulated the new Mid-term Direction 2018 with the aim of pursuing further development and growth.

Mid-term Direction 2018

Business goals

1. Sales
Aiming to grow at an annualized rate of 5–10%, we will pursue medium- to long-term sales expansion in our focus markets (automotive, energy, healthcare) in addition to growth in existing markets, especially the communications market. Moreover, our goal is to have new products account for 40% of sales, and will strive to increase sales by providing new value to customers.

2. Operating income
We will pursue an operating income ratio of at least 20% (at an exchange rate of $1 USD = ¥115 JPY) and greater corporate value with an increase in net income per share. Also, we will use ROI as an indicator of efficiency and will attempt to raise investment efficiency in each of our businesses.

Growth strategies
We will focus on the following growth strategies in order to achieve the business goals set out in the Mid-term direction 2018:

1. Pursuit of a competitive edge in the communications market
We will not only maintain our strong share of the communications market, especially mobile communications, but will also provide new value in an effort to maintain and expand our competitive edge.

2. Expansion of business in focus markets / Expansion of business in automotive, energy and healthcare
In addition to the automotive market in which we already have established sales we will create new business models and customer value in pursuit of market diversification and growth within energy and healthcare/medical markets. Our approach to these markets will be to build businesses in which we can bring Murata’s uniqueness to the fore, after clearly defining entry scenarios.

3. Market development with a longer-term view
The Internet of Things (IoT) is expanding the boundaries of electronics and creating new needs for the smart society. In response to these expanding needs, we will strive to provide new value by integrating sensors and communications technology.