Medium-Term Direction 2027

* click here for the “Medium-Term Direction 2027 (Information Meeting) Materials” Page

Review of Medium-Term Direction 2024

The Medium-Term Direction 2024 (FY 2022 to FY 2024) was formulated as the first phase to realize Vision 2030.
In Medium-Term Direction 2024, which defines new social value targets in addition to economic value targets, we have focused our efforts on creating a continuous cycle of social and economic value to contribute to the enrichment of society.

The social value targets are on track. Most notably, we were able to achieve our fiscal 2024 climate change goal in fiscal 2023.
However, the economic value targets are expected to fall short of fiscal 2024 targets for revenue, operating income ratio, and ROIC (pre-tax basis), due to factors including our lower-than-projected demand for components in the consumer market for smartphones, PCs, and other products.
Towards achieving Medium-Term Direction 2027, we will strengthen our efforts as shown below:

  • *1

    Greenhouse gas

  • *2

    Compared to FY2019

  • *3

    Percentage of recycled material use (by weight), mainly in 24 resources at high risk of depletion

  • *4

    Compared to FY2021

  • *5

    Percentage of Murata’s discharges (waste + valuable material) that are recycled as circulating resources (by weight)

  • *6

    Internal Carbon Pricing

  • *7

    Task Force on Climate-related Financial Disclosures

  • *8

    Responsible Business Alliance

  • *9

    Business Continuity Management

A Wave of Innovator in Electronics

Murata has grown significantly by demonstrating its presence in the periodic technological innovation of electronics.
Towards 2030, we aspire to become a company that leads AI-driven transformations in electronics and continues to grow.

Figure: A Wave of Technological Innovation in Electronics and Murata’s Performance Trends

Murata’s Business Opportunities

In Medium Term Direction 2027, we are redefining the “Communications” area, which is a core field of Murata.
By redefining smartphones, PCs, and other devices as “edge devices” that bridge the gap between physical space and cyberspace, and data centers and servers that support cyberspace as “IT infrastructure”, we aim to capture market opportunities created by new technological innovation.

Positioning of Medium-Term Direction 2027

Under its Vision 2030, Murata aims to be the best choice for customers and society as Global No. 1 Component & Module Supplier.
The Medium-Term Direction 2027 is positioned as a three-year period of increased clarity toward the realization of Vision 2030 and outlines three basic policies.

Diagram: Positioning of Medium-Term Direction 2027 to Achieve What Murata Wants To Be in Vision 2030

Management Targets for Medium-Term Direction 2027

By capturing the growth opportunities in AI-driven electronics, Murata aims to achieve disruptive growth toward 2030.

Growth image of Murata’s revenue, operating income ratio, and ROIC (after-tax basis) through FY2030

We aim to achieve the following economic and social value targets as our management targets for fiscal 2027.

Diagram: Management Targets for Medium-Term Direction 2027
  • *1

    ROIC disclosure has been changed from pre-tax to post-tax from this Medium-Term Direction. ROIC (post-tax basis) = Post-tax operating income ÷ Average invested capital at the beginning and end of the period (Property, plant, and equipment/right-of-use assets/goodwill/intangible assets + inventories + trade receivable − trade payables)

  • *2

    Greenhouse gas

  • *3

    Carbon neutral

  • *4

    Percentage of recycled material use (by weight), mainly in 24 resources at high risk of depletion

  • *5

    Percentage of Murata’s discharges (waste + valuable materials) that are recycled as circulating resources (by weight)

  • *6

    Cumulative number of employees in Japan and abroad who have gained global experience through relocation, training, or remote assignments outside their home country after 2025

  • *7

    Murata Manufacturing Co., Ltd. on a non-consolidated basis

Capital Allocation Policy

The Medium-Term Direction 2027 sets out the capital allocation policy as shown below.
We will continue to maximize our corporate value through “value co-creation with stakeholders.”

  • *1

    Based on April 2024 results forecast.

  • *2

    Includes excess funds on hand at the end of FY2021 and expenses incurred during the period.

  • *3

    Unexecuted investments in M&A and other growth investments are not included.

* click here for the “Medium-Term Direction 2027 (Information Meeting) Materials” Page