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Murata has prepared the “Mid-term Direction” that includes actions to be taken over a three-year period for achieving our long-term vision and sustainable growth. Here, we will introduce details of our current Mid-term Direction and our progress.
All Murata employees collaborate with one another, innovate, and create new value.
Murata aims to become the first-choice supplier in the target segments of each of our businesses while expanding the scope of our offering and value proposition from parts to solutions.
Acquire and enhance core competencies, and achieve the following:
In the communications and automotive markets, a large wave of environmental change is just around the corner. In order to secure business opportunities from these markets and achieve sustainable growth, it is necessary to strengthen the foundations of the organization and work structures in accordance with the expanding size of the company. In the growing markets, we will aim for healthy growth so that we can provide the value that satisfies Murata’s customers and allow each and every employee to feel rewarded as they continue to grow.
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We will introduce our initiatives under three corporate-wide policies for the fiscal year ended on March 31, 2020, the first year of the mid-term direction.
It is necessary to establish a mechanism for more efficient allocation of resources from the perspective of corporate-wide optimization, and we are working on introducing feasibility assessment models as a measure.
In addition to the active use of the Internet of Things (IoT), we are making comprehensive efforts to achieve optimization and standardization, in order to enhance the efficiency of monozukuri (manufacturing) while eliminating constraints and waste.
We will set targets for issues of materiality (key issues) originating from social issues and accelerate our efforts while maintaining harmony with our business. In addition, as the first step in establishing an organizational culture and business processes that enable trust and respect, we will conduct a global survey to increase the number of employees who feel “rewarded and see opportunities for growth.”
In 2018, Murata established “Medium-term Direction 2021” as the policy for the next three years (from FY2019 to FY2021). With Medium-term Direction 2021, we aimed to provide value to customers by rebuilding strong business foundations to support our growing business and by capturing broadening business opportunities. We have also set three Group-wide issues in order to ensure healthy growth in an aim to be a company where each employee plays an important role, feel rewarded and grow through their work.
[Net sales]Although demand for components grew continuously along with the progress of electrification of automobiles and the spread of 5G, sales fell short of the target. This was mainly due to the impact of revisions to our business portfolio for lithium-ion secondary batteries and connectivity modules.
[Ratio of operating income to net sales]The operating income ratio greatly exceeded our target. This was due to improved profit margins for each product, a better product mix, and production increase from increased output against a backdrop of strong demand, as well as the impact of the yen's depreciation.
[ROIC (pre-tax basis)]ROIC exceeded our target. This was due to higher operating income despite greater invested capital with capital expenditures incurred to expand buildings and production capacity.