Presentation Q&A

Q: What differentiators will Murata have and what kind of competition will the company face in the area of 5G technology?

A: We will need technology for filters such as dielectric filters. There is more than one key technology, meaning that we will need comprehensive RF technology. In addition, we expect that integrated modules containing antennas and filters will be required to use even high millimeter-wave bands for 5G. We will also focus on developing such modules.

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A: The materials development technology is the first advantage to be mentioned. It allows us to meet customer requests ahead of the competition in the market for smartphone batteries, too. Another highlight is the use of an electrolyte made of safe gel, which we believe gives us a safety advantage. A setback is the lack of reserve in production capacity. We aim to develop a solid production capacity substantially in the coming year.

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A: At CEATEC, we presented the NAONA as one of our projects in IoT technology. Designed to visualize how crowded with people a given place is, the concept combines a directional microphone with wireless communication to make the atmosphere visible. We expect to establish a business of providing relevant data in the future.

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A: All-solid-state batteries are produced using a process similar to the one employed for MLCCs. The difference is that all-solid-state battery is not allowed to cause a single defect per layer. These batteries should be designed in relatively large sizes to provide sufficient battery capacity. But again, large size means they will cause defects more easily. This is why development engineers are working on determining how large they can be made safely.

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A: As far as downsizing is concerned, we expect that sizes from 1005 to 0603 will become the mainstream for MLCCs used in consumer products and smartphones this year. In 2018F and after, we expect that the recent shortage of MLCCs worldwide will cause manufacturers to make a shift toward downsizing, resulting in more substantial growth for smaller products.

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A: LTE is now going through a pause in growth, while CA will still likely achieve two-digit growth. The future introduction of new high-speed communication protocols will increase the number of components used per phone.

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A: The greatest advantage of MetroCircTM is its high dielectric constant. The dielectric constant counts particularly in the bands of millimeter waves used for 5G communication, in particular. This is why we aim to focus on MetroCircTM technology as a leading application.

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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.