## Murata Manufacturing (6981.T) — filings-based deep dive (Murata Group) ### What Murata *is* (in its own disclosure language) Murata describes itself as a group “primarily engaged in the development, manufacturing and sale of electronic components and related products,” organized into three segments: **Components**, **Devices and Modules**, and **Other**. ["categorized into three business segments"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 1) The business model, in one screen (how money is made) **Segments and what’s inside them (per Murata):** - **Components:** capacitors, inductors, EMI removal/suppression filters, etc. ["Components includes capacitors"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) - **Devices & Modules:** high-frequency modules, surface acoustic wave filters, lithium-ion secondary batteries, sensors, etc. ["Devices and Modules includes high-frequency modules"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) - **Other:** healthcare equipment and solutions businesses, etc. ["Other includes healthcare equipment"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) **Where demand is showing up (latest interim narrative):** Murata points to **continued data-center investment (AI servers)** and a strong auto market driven by **AD/ADAS** and rising **xEV** ratios. ["demand for components has expanded for AI servers"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) ["automotive market has been strong due to the advancement of AD/ADAS"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) --- ## 2) Financial scoreboard (FY2024 → FY2025) — growth, margin, ROIC Murata’s FY2025 (fiscal year ended **March 31, 2025**) shows a meaningful profitability rebound vs FY2024, with **higher revenue and a much higher operating margin**. ["Current consolidated fiscal year (April 1, 2024 to March 31, 2025)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ### Table A — Income statement highlights (JPY millions) | Metric | FY2024 (Apr 1, 2023–Mar 31, 2024) | FY2025 (Apr 1, 2024–Mar 31, 2025) | YoY change | |---|---:|---:|---:| | Sales revenue | 1,640,158 ["Sales revenue"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 1,743,352 ["Sales revenue"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +6.3% ["Rate of increase/decrease"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Operating profit | 215,447 ["Operating profit"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 279,702 ["Operating profit"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +29.8% ["Rate of increase/decrease"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Operating margin | 13.1% ["percentage (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 16.0% ["percentage (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +2.9 pp **(computed)** ["percentage (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["percentage (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Profit attributable to owners of parent | 180,838 ["Net income"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 233,818 ["Net income"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +29.3% ["Rate of increase/decrease"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | ROIC (before tax) | 10.0% ["ROIC (before tax) (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 13.0% ["ROIC (before tax) (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +3.0 pp ["Increase/Decrease"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | **What management says drove FY2025:** Murata attributes FY2025 revenue growth to mix shifts (down in some smartphone-related modules/filters, up in capacitors for computers & mobility, and resin multilayer substrates/inductors for smartphones) plus FX (JPY depreciation vs prior year). ["sales of capacitors for computers and mobility devices… increased"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["a depreciation of the yen by 7.95 yen"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 3) Segment economics: where profits are structurally concentrated Murata’s disclosures show a consistent pattern: **Components generates the bulk of operating profit**, while Devices & Modules is more volatile and can swing between losses/profits. ### Table B — FY2024 segment snapshot (JPY millions) | FY2024 (Apr 1, 2023–Mar 31, 2024) | Components | Devices & Modules | Other | Total | |---|---:|---:|---:|---:| | Revenue from external customers | 933,771 ["Revenue from external customers"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 695,236 ["Revenue from external customers"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 11,151 ["Revenue from external customers"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 1,640,158 ["Revenue from external customers"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Operating profit (loss) | 234,181 ["Operating profit (△ loss)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -12,999 ["Operating profit (△ loss)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -5,735 ["Operating profit (△ loss)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 215,447 ["Operating profit (△ loss)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Operating margin | 24.8% ["Operating profit (loss) ratio"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -1.9% ["Operating profit (loss) ratio"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -8.5% ["Operating profit (loss) ratio"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 13.1% ["Operating profit (loss) ratio"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | **ROIC lens by segment (management’s own metric):** Murata explicitly reports segment ROIC (before tax) improving in both segments from FY2024 to FY2025 (Components 19.0% → 21.2%; Devices & Modules -1.5% → 1.2%). ["ROIC by business segment (before tax)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 4) “What’s happening now?” — interim results (Apr–Sep 2025) This is useful because it shows whether the FY2025 rebound continued. ### Table C — Interim KPIs (JPY millions; Apr–Sep) | Metric | 1H FY2025 (Apr 1, 2024–Sep 30, 2024) | 1H FY2026 (Apr 1, 2025–Sep 30, 2025) | |---|---:|---:| | Sales revenue | 883,481 ["Sales revenue"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 902,778 ["Sales revenue"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | | Interim profit before tax | 164,029 ["Interim (current) profit before tax"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 174,782 ["Interim (current) profit before tax"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | | Interim profit attributable to owners | 130,320 ["Interim (current) profit attributable"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 132,379 ["Interim (current) profit attributable"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | | Cash flow from operating activities | 216,016 ["Cash flows from operating activities"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 167,733 ["Cash flows from operating activities"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | | Cash & cash equivalents (end of period) | 571,702 ["balance of cash and cash equivalents"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 582,394 ["balance of cash and cash equivalents"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | **Interim segment mix shift:** Components up strongly Y/Y while Devices & Modules down Y/Y (for the interim period), which is directionally consistent with the idea that Murata’s “core profit engine” is Components. ["Components posted revenue… up 9.6%"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) ["Devices and Modules… down 8.0%"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) --- ## 5) Cash flow + shareholder returns: how the cash gets used ### Table D — FY2025 cash flow bridge (JPY millions) | Line item | FY2024 | FY2025 | |---|---:|---:| | Operating cash flow | 489,637 ["Cash flows from operating activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 451,905 ["Cash flows from operating activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Investing cash flow | -201,571 ["Cash flows from investing activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -208,070 ["Cash flows from investing activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Financing cash flow | -165,321 ["Cash flows from financing activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -242,733 ["Cash flows from financing activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Dividends paid | -94,460 ["Dividend payment amount"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -101,581 ["Dividend payment amount"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Treasury stock purchases | -11 ["Expenditures for acquisition of treasury stock"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -80,006 ["Expenditures for acquisition of treasury stock"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Corporate bond redemptions | -60,000 ["Expenditures for redemption of corporate bonds"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -50,000 ["Expenditures for redemption of corporate bonds"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | **Analyst interpretation (filings-grounded):** FY2025 features **material shareholder distributions** (dividends + buybacks) and ongoing reinvestment (capex-heavy investing cash flow), while still maintaining a very high equity ratio (85%+). ["expenditures for the purchase of treasury stock"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["The equity ratio… 85.2%"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 6) Investment intensity & capacity build: what they’re spending on ### Table E — FY2025 capex by segment + forward plan | Item | Value | |---|---:| | FY2025 capital investments — Components | 109,899 (JPY mn) ["In the Component segment, 109,899"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | FY2025 capital investments — Devices & Modules | 67,632 (JPY mn) ["Devices and Modules segment 67,632"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | FY2025 capital investments — Other | 2,940 (JPY mn) ["\"Other\" segment 2,940"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | FY2025 capital investments — Total | 180,471 (JPY mn) ["total amount 180,471"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Planned investment amount (year after FY2025) | 270,000 (JPY mn) ["planned investment amount… 270,000"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | **What this implies:** Murata is explicitly still in “build/upgrade capacity + facilities” mode (production expansion/rationalization + land/buildings + R&D facilities), not a harvest-only phase. ["expansion and rationalization of production facilities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["expansion of research and development facilities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 7) The risk map that matters most for a global Japanese exporter ### FX risk is explicitly quantified Murata states that with **over 90% of sales revenue from overseas**, FX matters materially, and estimates that **every JPY 1 appreciation vs USD** would reduce operating profit by **~JPY 4.5 billion per year** (for the following fiscal year). ["over 90% of the Group's sales revenue coming from overseas"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["decrease of approximately 4.5 billion yen per year"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) **Mitigations Murata lists:** price reflection for overseas sales + FX forwards for a portion of exposure (without hedge accounting). ["reflect exchange rate fluctuations in sales prices"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["enters into forward exchange contracts"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ### Climate / environmental transition + physical risk is also elevated Murata frames climate change as both transition risk (carbon pricing, standards, customer expectations) and physical risk (typhoons/heavy rains, supply chain disruption) and references TCFD-aligned disclosure plus targets like **RE100 by FY2035** and supply-chain carbon neutrality by FY2050. ["Risks related to climate change"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["disclose information… TCFD"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["achieve RE100 by fiscal 2035"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 8) A “quality of earnings” checkpoint: impairments and where they occurred Murata discloses significant impairment activity tied to **Devices & Modules**, with different drivers in consecutive years: - FY2024: large impairment tied to **cylindrical lithium-ion secondary battery facilities** (Devices & Modules). ["49,482 million yen was recorded for cylindrical lithium-ion secondary battery facilities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) - FY2025: impairment tied to **MEMS inertial force sensor** business (Devices & Modules). ["10,352 million yen was recorded… MEMS inertial force sensor business"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) This matters because it signals that the segment Murata itself shows as structurally lower-margin is also where capital mis-timing risk has historically surfaced. --- # “Interactive” navigation (pick any thread to drill deeper next) You can reply with any of the following exact prompts, and I’ll go straight into that module using only filings/disclosures (no extra questions): 1. **“Deep dive: Components segment economics”** (mix, margins, what drives ROIC). 2. **“Deep dive: Devices & Modules turnaround + impairments”** (what went wrong, what changed, where the remaining risk sits). 3. **“Deep dive: Capital allocation + shareholder returns”** (dividends/buybacks, bonds, balance sheet posture). 4. **“Deep dive: FX & sensitivity”** (what the 4.5bn/JPY implies; practical exposure framing). 5. **“Deep dive: Interim FY2026 (Apr–Sep 2025) momentum”** (what’s accelerating/rolling over by segment & end-market). If you want the fastest “one chart to rule them all,” tell me: **“Build me a Murata dashboard table”** and I’ll consolidate the key KPIs (growth, margins, ROIC, segment mix, cash flow, capex, FX sensitivity) into a single compact table sourced to filings.

## Murata Manufacturing (6981.T) — filings-based deep dive (Murata Group) ### What Murata *is* (in its own disclosure language) Murata describes itself as a group “primarily engaged in the development, manufacturing and sale of electronic components and related products,” organized into three segments: **Components**, **Devices and Modules**, and **Other**. ["categorized into three business segments"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 1) The business model, in one screen (how money is made) **Segments and what’s inside them (per Murata):** - **Components:** capacitors, inductors, EMI removal/suppression filters, etc. ["Components includes capacitors"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) - **Devices & Modules:** high-frequency modules, surface acoustic wave filters, lithium-ion secondary batteries, sensors, etc. ["Devices and Modules includes high-frequency modules"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) - **Other:** healthcare equipment and solutions businesses, etc. ["Other includes healthcare equipment"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) **Where demand is showing up (latest interim narrative):** Murata points to **continued data-center investment (AI servers)** and a strong auto market driven by **AD/ADAS** and rising **xEV** ratios. ["demand for components has expanded for AI servers"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) ["automotive market has been strong due to the advancement of AD/ADAS"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) --- ## 2) Financial scoreboard (FY2024 → FY2025) — growth, margin, ROIC Murata’s FY2025 (fiscal year ended **March 31, 2025**) shows a meaningful profitability rebound vs FY2024, with **higher revenue and a much higher operating margin**. ["Current consolidated fiscal year (April 1, 2024 to March 31, 2025)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ### Table A — Income statement highlights (JPY millions) | Metric | FY2024 (Apr 1, 2023–Mar 31, 2024) | FY2025 (Apr 1, 2024–Mar 31, 2025) | YoY change | |---|---:|---:|---:| | Sales revenue | 1,640,158 ["Sales revenue"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 1,743,352 ["Sales revenue"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +6.3% ["Rate of increase/decrease"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Operating profit | 215,447 ["Operating profit"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 279,702 ["Operating profit"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +29.8% ["Rate of increase/decrease"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Operating margin | 13.1% ["percentage (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 16.0% ["percentage (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +2.9 pp **(computed)** ["percentage (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["percentage (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Profit attributable to owners of parent | 180,838 ["Net income"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 233,818 ["Net income"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +29.3% ["Rate of increase/decrease"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | ROIC (before tax) | 10.0% ["ROIC (before tax) (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 13.0% ["ROIC (before tax) (%)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | +3.0 pp ["Increase/Decrease"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | **What management says drove FY2025:** Murata attributes FY2025 revenue growth to mix shifts (down in some smartphone-related modules/filters, up in capacitors for computers & mobility, and resin multilayer substrates/inductors for smartphones) plus FX (JPY depreciation vs prior year). ["sales of capacitors for computers and mobility devices… increased"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["a depreciation of the yen by 7.95 yen"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 3) Segment economics: where profits are structurally concentrated Murata’s disclosures show a consistent pattern: **Components generates the bulk of operating profit**, while Devices & Modules is more volatile and can swing between losses/profits. ### Table B — FY2024 segment snapshot (JPY millions) | FY2024 (Apr 1, 2023–Mar 31, 2024) | Components | Devices & Modules | Other | Total | |---|---:|---:|---:|---:| | Revenue from external customers | 933,771 ["Revenue from external customers"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 695,236 ["Revenue from external customers"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 11,151 ["Revenue from external customers"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 1,640,158 ["Revenue from external customers"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Operating profit (loss) | 234,181 ["Operating profit (△ loss)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -12,999 ["Operating profit (△ loss)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -5,735 ["Operating profit (△ loss)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 215,447 ["Operating profit (△ loss)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Operating margin | 24.8% ["Operating profit (loss) ratio"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -1.9% ["Operating profit (loss) ratio"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -8.5% ["Operating profit (loss) ratio"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 13.1% ["Operating profit (loss) ratio"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | **ROIC lens by segment (management’s own metric):** Murata explicitly reports segment ROIC (before tax) improving in both segments from FY2024 to FY2025 (Components 19.0% → 21.2%; Devices & Modules -1.5% → 1.2%). ["ROIC by business segment (before tax)"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 4) “What’s happening now?” — interim results (Apr–Sep 2025) This is useful because it shows whether the FY2025 rebound continued. ### Table C — Interim KPIs (JPY millions; Apr–Sep) | Metric | 1H FY2025 (Apr 1, 2024–Sep 30, 2024) | 1H FY2026 (Apr 1, 2025–Sep 30, 2025) | |---|---:|---:| | Sales revenue | 883,481 ["Sales revenue"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 902,778 ["Sales revenue"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | | Interim profit before tax | 164,029 ["Interim (current) profit before tax"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 174,782 ["Interim (current) profit before tax"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | | Interim profit attributable to owners | 130,320 ["Interim (current) profit attributable"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 132,379 ["Interim (current) profit attributable"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | | Cash flow from operating activities | 216,016 ["Cash flows from operating activities"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 167,733 ["Cash flows from operating activities"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | | Cash & cash equivalents (end of period) | 571,702 ["balance of cash and cash equivalents"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | 582,394 ["balance of cash and cash equivalents"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) | **Interim segment mix shift:** Components up strongly Y/Y while Devices & Modules down Y/Y (for the interim period), which is directionally consistent with the idea that Murata’s “core profit engine” is Components. ["Components posted revenue… up 9.6%"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) ["Devices and Modules… down 8.0%"](be179184-9ce3-44ba-bbcb-079f12b68fd4:576:original.html) --- ## 5) Cash flow + shareholder returns: how the cash gets used ### Table D — FY2025 cash flow bridge (JPY millions) | Line item | FY2024 | FY2025 | |---|---:|---:| | Operating cash flow | 489,637 ["Cash flows from operating activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | 451,905 ["Cash flows from operating activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Investing cash flow | -201,571 ["Cash flows from investing activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -208,070 ["Cash flows from investing activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Financing cash flow | -165,321 ["Cash flows from financing activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -242,733 ["Cash flows from financing activities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Dividends paid | -94,460 ["Dividend payment amount"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -101,581 ["Dividend payment amount"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Treasury stock purchases | -11 ["Expenditures for acquisition of treasury stock"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -80,006 ["Expenditures for acquisition of treasury stock"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Corporate bond redemptions | -60,000 ["Expenditures for redemption of corporate bonds"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | -50,000 ["Expenditures for redemption of corporate bonds"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | **Analyst interpretation (filings-grounded):** FY2025 features **material shareholder distributions** (dividends + buybacks) and ongoing reinvestment (capex-heavy investing cash flow), while still maintaining a very high equity ratio (85%+). ["expenditures for the purchase of treasury stock"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["The equity ratio… 85.2%"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 6) Investment intensity & capacity build: what they’re spending on ### Table E — FY2025 capex by segment + forward plan | Item | Value | |---|---:| | FY2025 capital investments — Components | 109,899 (JPY mn) ["In the Component segment, 109,899"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | FY2025 capital investments — Devices & Modules | 67,632 (JPY mn) ["Devices and Modules segment 67,632"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | FY2025 capital investments — Other | 2,940 (JPY mn) ["\"Other\" segment 2,940"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | FY2025 capital investments — Total | 180,471 (JPY mn) ["total amount 180,471"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | | Planned investment amount (year after FY2025) | 270,000 (JPY mn) ["planned investment amount… 270,000"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) | **What this implies:** Murata is explicitly still in “build/upgrade capacity + facilities” mode (production expansion/rationalization + land/buildings + R&D facilities), not a harvest-only phase. ["expansion and rationalization of production facilities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["expansion of research and development facilities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 7) The risk map that matters most for a global Japanese exporter ### FX risk is explicitly quantified Murata states that with **over 90% of sales revenue from overseas**, FX matters materially, and estimates that **every JPY 1 appreciation vs USD** would reduce operating profit by **~JPY 4.5 billion per year** (for the following fiscal year). ["over 90% of the Group's sales revenue coming from overseas"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["decrease of approximately 4.5 billion yen per year"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) **Mitigations Murata lists:** price reflection for overseas sales + FX forwards for a portion of exposure (without hedge accounting). ["reflect exchange rate fluctuations in sales prices"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["enters into forward exchange contracts"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ### Climate / environmental transition + physical risk is also elevated Murata frames climate change as both transition risk (carbon pricing, standards, customer expectations) and physical risk (typhoons/heavy rains, supply chain disruption) and references TCFD-aligned disclosure plus targets like **RE100 by FY2035** and supply-chain carbon neutrality by FY2050. ["Risks related to climate change"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["disclose information… TCFD"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) ["achieve RE100 by fiscal 2035"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) --- ## 8) A “quality of earnings” checkpoint: impairments and where they occurred Murata discloses significant impairment activity tied to **Devices & Modules**, with different drivers in consecutive years: - FY2024: large impairment tied to **cylindrical lithium-ion secondary battery facilities** (Devices & Modules). ["49,482 million yen was recorded for cylindrical lithium-ion secondary battery facilities"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) - FY2025: impairment tied to **MEMS inertial force sensor** business (Devices & Modules). ["10,352 million yen was recorded… MEMS inertial force sensor business"](77fb5e4a-f07d-4454-87a4-8bcd84958cb8:1064:original.html) This matters because it signals that the segment Murata itself shows as structurally lower-margin is also where capital mis-timing risk has historically surfaced. --- # “Interactive” navigation (pick any thread to drill deeper next) You can reply with any of the following exact prompts, and I’ll go straight into that module using only filings/disclosures (no extra questions): 1. **“Deep dive: Components segment economics”** (mix, margins, what drives ROIC). 2. **“Deep dive: Devices & Modules turnaround + impairments”** (what went wrong, what changed, where the remaining risk sits). 3. **“Deep dive: Capital allocation + shareholder returns”** (dividends/buybacks, bonds, balance sheet posture). 4. **“Deep dive: FX & sensitivity”** (what the 4.5bn/JPY implies; practical exposure framing). 5. **“Deep dive: Interim FY2026 (Apr–Sep 2025) momentum”** (what’s accelerating/rolling over by segment & end-market). If you want the fastest “one chart to rule them all,” tell me: **“Build me a Murata dashboard table”** and I’ll consolidate the key KPIs (growth, margins, ROIC, segment mix, cash flow, capex, FX sensitivity) into a single compact table sourced to filings.