Murata Report 2016 Corporate Report CSR Report

M urata Report 2015

Corporate Report CSR Report

www.murata.com This pamphlet is printed with plant-based ink for environmental consideration. Printed in Japan '16/8/7K Contents

Innovator in Electronics Contents

Murata's components are everywhere. Corporate report Though often unseen, our products are essential parts of the elec- 03 Innovator in Electronics

tronic devices you are using throughout each and every day: mobile Contents phones, computers, cars, home appliances. 04 Message from the President More and more, Murata products are found in many new kinds of 06 Murata technologies applications, such as healthcare devices and energy management 08 Target markets systems. 10 Products by application The world keeps on changing. The world of electronics is changing even faster. 14 Financial highlights As an Innovator in Electronics, Murata has always followed 16 Global network its corporate philosophy of contributing to the advancement of society and the electronics industry. CSR report Moving forward, we will continue to anticipate and consider the 18 CSR commitment needs of the global society and our customers, 20 Corporate Social Responsibility and to develop advanced technologies and high-value applications. We will keep on innovating and shaping the future of 22 Business and CSR

the world of electronics. 24 Promoting health, safety, and environmental conservation

26 Employees

28 Corporate governance

29 Society and the community

30 CSR activities: Targets and results

32 Opinion from a third party

Profile

33 Murata sites worldwide

34 Executives

Stock information

Major shareholders

In this brochure, "Murata" refers to the Murata Manufacturing Group as a whole.

02 03 Message from the President

Murata Philosophy “Mid-Term Direction 2018” and our longer-term visions Since its establishment in 1944, Murata has grown significantly, Turning change into and our previous mid-term direction 2013 that ended in 2015 marked a major milestone in our company’s history with the opportunity achievement of 1 trillion JPY in sales. I sincerely thank all our customers, business partners, employees and other stakeholders who had trust in us and enabled this achievement. Challenging new avenues There are uncertainties in the world economy but at the same time many megatrends and societal changes that are expanding for growth the boundaries of electronics at a fast pace, offering us new, exciting opportunities to contribute to the advancement of society. Under these circumstances, we have recently formulated our longer term visions and the next 3-year strategies – the mid-term direction 2018 – which will be extremely important for Murata’s future growth. Providing new value to new markets

With the increased number of components per high-end smartphone, and further expansion of carrier aggregation*, the We contribute to demand for Murata’s components and modules will continue to the advancement of society grow. Murata will continue to take advantage of its stable mass production capacity, supply chain and broad product portfolio, and expand business by providing new value in the communication by enhancing technologies and skills market which is still our main pillar for growth. applying scientific approach *system to speed up communication by using multiple frequencies simultaneously. creating innovative products and solutions At the same time we will continue to fortify other pillars for being trustworthy sustainable growth, building customer satisfaction in automotive, and, together with all our stakeholders, energy and healthcare markets. Our approach to these markets thankful for the increase in prosperity. will be to build businesses in which we can bring Murata’s uniqueness to the fore and offer new value to customers. With the expansion of the Internet of Things（ IoT） we foresee increasing need for new types of sensing and communication technologies, and we aim to be an active player in the shaping of the smart societies. We will also keep on strengthening our business foundation including Monozukuri（ manufacturing）, technology development and human resources development. While we look to the future and lay the groundwork for a new growth trajectory, we remain faithful to our corporate Philosophy. Our Philosophy is still our guiding principle, keeping the wheels of the global Murata turning in the same direction, for the benefit of the society, and for the benefit of our customers.

Tsuneo Murata President

04 05 Murata technologies

Materials “New electronic devices begin with new electronic 2004 - Conventional process 2014 - New process Murata technologies Where components; new electronic components begin innovation technology with new materials...” Based on that concept, Shaping the future of electronics Murata has created functional ceramic materials begins with outstanding characteristics. And we continu- Murata has built an integrated system of production from raw ma- ously further advance our technology through the terials to finished products, and we are continuously developing and development of new materials with even better accruing our fundamental technology base, such as materials tech- characteristics. nology, front-end process technology, product design technology,

back-end process technology and analytical technology. We also aim Materials processing at creating new markets and innovations by actively collaborating with outside partners and by developing core technologies and prod- ucts that anticipate the future. Front-end process Front-end process technologies enable us to Perfected produce designed functions in the best possible techniques technology way, and it plays an important role in the miniatur- ization, slimming down, and high functionality of electronic components.

Surface finishing

Printing

Product design From single-function components to modules and Shaping on to total solution proposals, the value that Mura- the future technology ta has provided over the years continues to evolve. We are involved in development of the technolo- gies and products that can promptly respond to customer needs with an eye on the future. Simulation

Inductor element structure

Back-end process Thanks to our own production facilities and strong Making manufacturing （“monozukuri”） expertise, we innovation technology possess numerous technologies and know-how to happen mass-produce products stably and efficiently. Packaging

Measurement

Efficient use of scientific analytical methods Layer structure TEM* image of dielectric ceramics Corresponding cations in the image Analytical Dielectric Ba Attending to confirm physical and electrical properties, ceramics Internal electrode to detail composition and structure of materials, together technology Ti with Murata’s advanced failure analysis systems, Dielectric ceramic provide peace of mind to our customers. 1µm 2nm

*transmission electron microscope

External Internal electrode electrode Micro and nano structures in a MLCC （monolithic ceramic capacitor）

06 07 Target markets

Target markets Smart healthcare Energy savings

Shaping the future Aging populations in developed countries and ex- With the global trend shifting from fossil fuels With the increase of digitization and IoT providing con- panding medical services in emerging countries are towards renewable energy sources, there is a need nectivity across industries, the boundaries of electronics increasing the demand for better and more efficient to develop more efficient and smarter energy man- are expanding. New needs for the smart society are healthcare. Murata contributes to the development agement systems, along with a growing demand of medical technology by bringing together our own for smart communication and sensing technol- emerging. In response to these expanding needs, Murata proprietary technologies and continually providing cus- ogies. Murata can contribute to energy savings will strive to provide new value based on deep know- tomers with new value. We meet our customers’ needs through miniaturization, thin materials, high-effi- how in sensing, telecommunication, miniaturization and with compact, highly reliable products, from non- or ciency technology and power modules for electric other technologies. less-invasive medical devices to medical IT solutions. power conversion, transmission and distribution, In addition to the communication market, we will ac- and by providing comprehensive data visibility and tively design and provide unique components and solu- management solutions through integration of sen- tions to the automotive, energy and healthcare markets, sors and communication modules. and contribute to the advancement of a safer, healthier and more efficient society. Cloud

Home

Solar power Battery Smart Transmission system controller system Murata contributes to By sensing and communicating patient information, such as biological With smart home energy management systems households are data, in real time, Murata makes more effective prevention and earlier able to flexibly select the energy source according to their need the advancement of a treatment possible. In addition to in-hospital care, the utilization of in- and circumstances, optimising and reducing their overall energy Expanding boundaries home and remote monitoring services is also expected to grow. consumption. Safety on the road safer, healthier, and more of electronics...... increasing In the very near future, fully-or semi-autonomous, envi- efficient society. market opportunities ronmentally friendly vehicles will safely connect the driver, road, other cars, various networks and travel services. Mu- rata is contributing to this future vision by supplying compo- nents and solutions for advanced driver assistance systems, Consumer connectivity and electric vehicles. Because of the high relia- Industry Social bility of our products, we help provide peace of mind to our appliances infrastructure customers.

Cloud Wireless communication

Blind spot assistance Road condition detection

Advanced Driver Assistance Systems（ ADAS） improve road safety. These systems combining various technologies such as software, sensing and connectivity help detect driving environment, communicate with other cars or services, and control the whole driving process.

08 09 Products by application

Monolithic ceramic capacitors Communications Global share Indispensable to electronic circuits, these com- Computers ponents serve to store electricity and handle the 40% electric flow. The number of these units being incor- porated is increasing along with the miniaturization, The world, the future, and reduced thickness, and high functionality of mobile devices like smartphones, as well as PCs. Ubiquitous computing in the true sense security at your fingertips Easy to carry and simple to connect, slim notebook PCs and Smartphones are presently in use all around the world. Commu- Murata makes tablet computers are now indispensable to our daily lives. nication speeds are getting faster and capacity is increasing, and Murata is contributing to high performance and high high performance and multifunctionality are advancing along with things “simple” functionality in PCs with our technologies for the further the expansion of communication service. Inductors（ coils） with not-so-simple downsizing and slimming down of electronic components, The miniaturization and modular design of high frequency parts, When electricity flows through these inductors, which our high-density package technology, and our sensing tech- are also called coils, a magnetic field develops and technologies... nology. We are also supporting new-age computing through sensors that improve functionality and operability, as well as low- that current is affected. These inductors are used in loss capacitors and power inductors, etc., all help Murata contrib- radio circuits, power supply circuits, and more. wireless communication modules that provide connectivity ute to the evolution and growth of the communication field. with reduced power consumption, and through sensors that deliver greater operating comfort.

Microwave coaxial connectors Microwave coaxial connectors transmit radio fre- quency signal between circuits. They contribute to the development of high-performance communica- tion equipments, such as smartphones, tablets and wearable devices with smaller and thinner size.

Internal configuration （image） Low ESL monolithic ceramic capacitors RF modules for cellular phones These small, high-capacity capacitors stabilize the These modules support the multiple frequency compat- power supply circuit to the MPU, helping reduce the ibility of smartphones. They combine a power amplifi- size and thickness of mobile PCs. cation（ PA） function with the conventional function for changing and filtering frequencies. By adding even more functions, they contribute to reducing the thickness and improving the transmission speed of smartphones.

SAW filters Global share Shock sensors The filters that extract only the required portion % These are electronic components that apply piezo- 50 of a radio signal are key devices in high frequency Global share electric ceramics to change acceleration and vibra- circuits. With its unique miniaturization technology, 95% tion into an electrical signal. They are used mainly Murata helps RF circuit downsizing. with HDDs as sensors for preventing the writing of data when an impact is received from an external source.

Power amplifier modules These are key devices that amplify the signal for smartphones and deliver those radio waves to distant locations. Murata’s power amplifier modules With Murata, are compatible with LTE and international frequency bands while contributing to higher functionality in connection takes those smartphones. up a brand new meaning... Chip EMI suppression filters（ Chip EMIFIL®） Global share Components for removing the noise that is gener- ated from electronic devices, these filters are useful 35% for preventing the malfunction of such devices. They Global share Connectivity modules contribute to the countermeasures for and improve- % Enabling various devices to access the Internet via ment in electromagnetic wave noise that is made 60 radio signals, these modules lead the trend towards more complex in accordance with the miniaturiza- increasing multifunctionality and IoT in smartphones tion, multi-functionalization, and higher frequencies and in-vehicle equipment. of today’s electronic devices.

* The “Global share” indicated on each page refers to the worldwide share of that particular industry, and is not the share of any corresponding application. Furthermore, the noted shares are merely estimates made by Murata and may differ depending upon the market or the application. 10 11 Products by application

Automotive electronics Combined gyros sensors and accelerometers Audio and visual / Changes in acceleration and in gravity can be han- dled as changes in capacitance in order to detect acceleration values and the angle of rotation. This Home appliances Automotive technology is going through sensor is used in areas in connection with the basic transformation for our Earth and people performance of automobiles, such as in the Elec- tronic Stability Control（ ESC） for the chassis and in With vehicles in which we can travel more safely and com- the car’s Anti-lock Brake Systems（ ABS）. Smart and Murata, for your home and for your family... fortably, while coping with environmental issues, and by pos- economical; TVs that remember your favorite program. Air-condition- sessing the entertainment functions with which we can enjoy ers that cool only those areas where people are and that the driving experience even more... the epitome of emit negative ions into the air. Murata’s sensors, ionizer The greater intelligence and electronic control of our auto- modules, and high conversion efficiency power supply mobiles is progressing into the next generation. stylish... modules support a new, “smart”, and “eco” lifestyle. Murata’s electronic components have evolved right along Ultrasonic sensors with those vehicles for use in various automotive applica- This sensor can measure distance according to the tions, including safety equipment, driver assistance, the reflex time of the ultrasonic waves that are gener- powertrain, and telecommunications, in order to deliver high ated by oscillating piezoelectric ceramics. It is used reliability that can withstand even harsh conditions of use. especially for the rear sonar in parking assistance systems.

Chip EMI suppression filters DC-DC converters （Chip EMIFIL®） This thin, lightweight DC-DC converter uses a Mura- Digitization of audio-visual equipment and home ta-proprietary control circuit and sheet transformer. Global share appliances is advancing and the high-speed clock Using this one DC-DC converter, voltage can be sup- 35% signal that flows inside those devices may some- plied to the circuit unit of each block that requires times have a negative influence as electromagnetic insulation（ the low-voltage battery input circuit noise. Chip EMI suppression filters prevent such unit, high-voltage battery input circuit unit, and AC malfunctions caused by noise and other factors, and commercial voltage input circuit unit）. simultaneously contribute to the high definition and high-quality sound in audio-visual equipment.

Monolithic ceramic capacitors Maximizing the heat resistance of ceramics, these highly reliable capacitors are able to demonstrate Thermistors Global share their excellent performance even under harsh usage These are parts whose resistance changes with environments. They are, thus, naturally utilized in ap- fluctuations in voltage and current. They monitor 40% plications that require high reliability, such as in ECUs, overheating in and the charge of circuits, and are drive control units and safety devices, as well as being useful in protecting those circuits from overheating widely used for infotainment like audio and navigation. or excessive current, like in ICs, power supply circuits and batteries.

Power inductors Ionizers / active oxygen modules Electronic control systems in automobiles have （Ozonizers） advanced. These power inductors efficiently transfer （Ionissimo®） power and suppress the noise generated from elec- tronic devices. This device ionizes air molecules（ gives them a plus or minus electric charge）. Deodorization, disinfec- tion, anti-mold, antivirus, anti-static, electrification and other effects can be achieved by ionizing the air Ceramic Resonators Crystal Units and adding certain characteristics. Murata’s missions （CERALOCK®） Global share abound... 75%

Timing devices These are component parts that generate the clock Polymer aluminum electrolytic capacitors signal in combination with the IC. As electronic out- These are high capacity capacitors that are char- fitting of automobiles progresses, communication acterized by having a low profile and low ESR. They between ECUs is needed and timing devices that handle the stabilization of voltage in circuits where deliver a highly accurate, high quality clock signal are serious voltage control is demanded, and contribute called for. to the advanced features in audio-visual equipment.

* The “Global share” indicated on each page refers to the worldwide share of that particular industry, and is not the share of any corresponding application. Furthermore, the noted shares are merely estimates made by Murata and may differ depending upon the market or the application. 12 13 Financial highlights

Net sales Sales by product Trend in sales by product 1210.8 Capacitors Financial highlights （Billion yen） Sales of products that contain modules and small, high performance component parts to 367.3（ 30.4%） 1,200 “connect” society are growing by leaps and bounds. Piezoelectric Components Net sales 161.9（ 13.4%） 1,000 Accelerating the evolution of society through Capacitors Communication modules 1,207 Other Components 800 （billion yen） 231（ 19.2%） Sales increased for our super-miniature capacitors The number of components per unit is increasing “connectivity” technology Communication Modules 600 and small, high capacity capacitors that are used in along with the improved communication speed, 395.2（ 32.7%） smartphones and other communication devices. In multi-functionalization, and multiband capabilities Sales of Murata’s small, thin, high performance, highly reliable elec- 400 the field of automotive electronics, the need for high in smartphones. The trend is progressing toward Power Supplies and Other Modules 51.7（ 4.3%） tronic components are growing more than ever before. reliability capacitors is growing right along with the modularization, in which a plurality of components Trend in sales by product 200 advancing electrification of vehicles. is integrated for such purposes as reducing the area Smartphones currently account for 80% of the mobile phones world- occupied by the RF section, and sales of RF and con- （Billion yen） 0 ’11 ’12 ’13 ’14 ’15 nectivity modules increased sharply. 1,200 wide, and even more high-performance, multifunctionality is anticipat- Piezoelectric components 1,100 ed in the future in line with the spread of multiband LTE-compatible Sales of SAW filters expanded greatly in accordance 1,000 with the multiband functionality of smartphones. Power supplies and other modules 900 units. In the field of automotive electronics, along with the increasing Operating income 800 The demand for ultrasonic sensors in automotive Sales for servers and automotive electronics grew. number of electronics components, improved safety features like 700 driver assistance applications is increasing as well. 600 Electronic Stability Control（ ESC） and the growth of built-in vehicle （Billion yen） 300 275.4 500 communication functions like infotainment is forecast. Other components 400 250 300 The demand for electronic components is also trending toward Sales of high frequency coils and connectors for 200 smaller and thinner dimensions, higher performance, and higher 200 smartphones grew, sales of EMI suppression filters 100 reliability. Murata is accelerating the introduction and launch of new for the automotive electronics and smartphone 0 ’11 ’12 ’13 ’14 ’15 150 markets trended well, and, in automotive electronics, Capacitors Communication Modules products, and, in addition to component products and the monolithic sales of MEMS sensors used for Electronic Stability ceramic capacitors and piezoelectric components that are our core 100 Control（ ESC） expanded as well. The sales of metal Piezoelectric Components Power Supplies and Other Modules coils is also trending upward through the synergy Other Components products, we are expanding our lineup of communication modules that 50 with TOKO Inc., which has recently become one of are compiled through multi-component integration and multi-layer 0 ’11 ’12 ’13 ’14 ’15 our subsidiaries. process technologies. Trend in sales by application Net income Net sales Operating income Audio-Visual Sales by application 47.6（ 3.9%） 203.8 （Billion yen） This broad range of products contributes to convenience, enjoyment and safety, and wit- Communications Billion yen Billion yen 728.4（ 60.4%） 1210.8 275.4 200 nessed a good level of sales in the communications and automotive electronics markets. Net sales Computers and Peripherals 1,207 166.6（13.8% ） 150 Communications Automotive electronics （billion yen） Net income Total assets Automotive Electronics The spread of LTE smartphones increased worldwide, As the use of electronics in automobiles advances, 152.8（ 12.7%） 100 and related demand expanded over a wide product sales of high-reliability capacitors, the MEMS sensors Home and Others range, including component parts like super-minia- used in Electronic Stability Control（ ESC） systems, 111.6（ 9.2%） Billion yen Billion yen ture capacitors and small, high-capacity, high-end and the ultrasonic sensors employed in driver assis- Trend in sales by application 203.8 1517.8 50 capacitors, SAW filters, high frequency chip coils, and tance functions are increasing, and the demand for （Billion yen） connectors, as well as modular components such as such automotive electronic components has shown 1,200 0 ’11 ’12 ’13 ’14 ’15 RF and connectivity modules. an even greater potential than the actual growth in 1,100 sales. 1,000 900 Computers and peripherals 800 Audio-visual, home and others Total assets Despite the somewhat sluggish sales in tablet com- 700 puters due to the affect of increasing display sizes on Despite a slowdown in the market for connectivity 600 500 （Billion yen） smartphones, the demand for notebook and desktop modules for portable media players, sales grew for 1517.8 PCs has remained steady. capacitors and EMI suppression filters for game con- 400 1,600 300 soles. 1,400 200 100 1,200 0 ’11 ’12 ’13 ’14 ’15 1,000 Audio-Visual Automotive Electronics 800 New applications Communications Home and Others 600 Computers and Peripherals 400 Automotive, energy, healthcare and medical... 200 With an IoT society in view, Murata will continue to propose new value in all of these new markets, and more. 0 ’11 ’12 ’13 ’14 ’15

Murata is currently concentrating on ①The automo- to electronics in medical technologies. tive market where the demand for electronic com- From a more long-term perspective, the spread of ponents is expanding rapidly due to the advancing an IoT society, where all devices and all things will be electronification of automobiles, the diffusion of ad- connected to the Internet, is expected. By taking ad- vanced driver assistance systems, and the expansion vantage of the technology（ the realization of smaller of wireless communication, ②The energy market sizes and reduced thickness, sensors, and the core where the realization of efficient energy utilization technology of wireless communications） and know- and an energy-saving society is aimed at and con- how in electronics that we have cultivated to-date, stantly advancing, and ③The healthcare and medical Murata is bringing change to these markets by pro- markets where growth is expected as a result of more viding new value in our ongoing efforts to contribute, and more generations being conscious of health, as more than ever before, towards the realization of a well as from the introduction of IT and the conversion new society, a better society.

14 15 Global network

Global network Japan

102 companies in many regions of the world. Wherever you find us, we are always Murata, ever innovative.

Over 90% of Murata products are sold outside of Japan; in Asia, North and South America, and Europe. Not only do we adhere to the same customer-oriented policy at each of our sites, we also strive to be a beloved corporate citizen and trusted presence in every region. Furthermore, each site recognizes itself as a member of the same Murata Group, moving together towards a common goal. Around the globe, Murata works as one.

The Americas Europe Asia & others Greater China Japan Net sales: 83.6 billion yen Net sales: 81.9 billion yen Net sales: 213.2 billion yen Net sales: 750.3 billion yen Net sales: 78 billion yen Number of employees: 946 Number of employees: 1,308 Number of employees: 14,940 Number of employees: 13,507 Number of employees: 23,973 Subsidiaries: 11 Subsidiaries: 14 Subsidiaries: 17 Subsidiaries: 29 Subsidiaries: 31

Net Sales With a customer base that continues to Murata Europe contribution from Europe to Murata Murata Electronics Singapore（ Pte.） Ltd. includes Consistently improving quality, prices, and delivery time are The Yokohama Technical Center boasts separate anechoic cham- spread globally, Murata Americas must global business is manifold : by direct business har- manufacturing, sales and logistics operations and important points at Shenzhen Murata Technology in order bers for each band range, offering the appropriate environment 1,207 persistently adapt our strategy to vesting with top global players and Distribu- employs people from a wide variety of for us to respond to rapid market changes for the wireless evaluation of a variety of products. capture a clear picture of the ever- tors in Europe, by strong seedsman design-in nationalities. The General Adminis- as well as to specific requests from our In recent years, with the expanding volume of （billion yen） changing global landscape. The contribution for global EMS players and tration Department to which I belong customers. To that end, we are constantly communication that is being carried out, the trend Voice-of-Customer is our driving by advanced academic R&D networks ensures that our employees can aiming at enhanced manufacturing toward utilizing millimeter waves has grown force to help provide direction for new and solid technologies and smoothly and efficiently focus capabilities that will meet those around the globe. In order for us to be an “in- for product development application concepts input. To expand on the business and their daily expectations, and we are working novator” in that millimeter wave band as well, and ensure continued Murata business along all those dimensions work. Our aim is to develop toward that goal on a daily basis. there is an urgent need for cooperation be- Sales by area innovation and differentiation. we need to work out multi-path inno- our site into a great workplace We run our business with due tween worldwide bases in order to anticipate Murata Americas Business Devel- vations in product, process, business with committed employees, importance placed on teamwork with the needs of all markets and, through that, to Japan 78（ 6.5%） opment and Product Marketing model and organization and stimulate contributing to the advance- our talented employees as we continue create our own core technologies. This way, strives for product design-in for a more entrepreneurial mind-set. ment of society with Murata. to contribute to the development of the our products will continue to contribute to the Europe 81.9（ 6.8%） the mutual benefit and growth of electronics community through business realization of a more sophisticated and highly Murata Europe all of Murata. Murata Electronics Singapore（ Pte.） Ltd. expansion around the Greater China area. convenient, fully networked future society. The Americas 83.6（ 6.9%） Manager Assistant General Manager Murata Americas Strategic Marketing/Technology Marketing General Administration Dept. Sherzhen Murata Technology Co., Ltd. Murata Manufacturing Co., Ltd. Director Manager Communication & Sensor Business Unit Greater China 750.3（ 62.1%） Business Development & Product Marketing Markus Huschens Tee Beng Hoe Production Dept. Communication Module Division Asia and others 213.2（ 17.7%） Geoff Brock Liang Guan Fei Ryuken Mizunuma

* Net sales, number of employees, and number of subsidiaries for each area are as of March 31, 2016. * Net sales for each area are for electronic components and related products. 16 17 CSR commitment

CSR report 2016

CSR-related committee organizational chart CSR charter（outline） Within the “Murata Philosophy” that we have held up as the In 2015, the Japanese government introduced the Corporate In line with the “Murata Philosophy”, Murata aims to continue to be a company Board of Directors company’s ideal since our foundation, it states that “We contribute Governance Code, wherein greater transparency is demanded in that is trusted by society by committing to compliance with laws and regula- tions, as well as to highly transparent governance, respect for human rights, Compliance Promotion to the advancement of society by ... creating innovative products and corporate management. Also based on the spirit of the company’s Committee health and safety, social contribution and environmental preservation, on the Statutory Representative Director solutions...” Philosophy, Murata is committed to building trust as we comply with basis of high corporate ethics. To these ends, Murata stipulated this CSR Charter That expresses our strong desire to contribute to more affluent, higher all aspects of ethics in business, and we will continue to fulfill our as the norms to be observed by all those working at the Company. Risk Management quality living for everyone through our products. social responsibility in cooperation with our stakeholders. CSR Management Committee Committee For example, communication devices like smartphones have become In promoting CSR Management, our company has established a Corporate governance

a part of the social infrastructure, and our company’s product lineup has CSR Management Committee on the basis of a CSR Charter whose We will meet standards of accountability and enhance management Management Executive played a part in the miniaturization and higher performance capabilities benchmark is that same “Murata Philosophy”. Murata will continue efficiency and transparency, so as to remain open to our communities Committee Environmental and society, and continue to be a reliable and respectable company. Committee of those phones. Wearable devices and the field of IoT/IoE, which are to aim at “being an open presence in our community and in society only expected to continue to grow, also present the potential to further as a whole, and to remain a corporation that is worthy of trust and Vice Presidents change society in the future. respect” so “that our customers know they are in good hands when Human rights and labor Global Warming Prevention Committee The fields in which electronics play an active part will expand they do business with Murata”. And through the activities of the CSR We will respect the human rights and dignity of individuals. Functional Staff significantly and Murata is already contributing to a safer and more Management Committee, we will continuously and systematically environmentally-friendly automotive sector. In the energy field as promote CSR Management toward the sustainable development of Social & Community Health and safety well, we are providing solutions to the problems of limited resources society. Contributions Committee and to environmental issues, and we are supporting human health and We will improve product and service quality and boost employee improvements in quality of life in the healthcare and medical fields. Tsuneo Murata morale by securing a safe and comfortable working environment and managing employees' health. In addition to making a social contribution through our business, President Chairman of the CSR Management Committee there is a need for us to deal with the many global issues that must be resolved in order to realize a sustainable society, including those related Environmental preservation to the environment, human rights, etc. So, the electronics industry has, We aim to realize a society where people can live a healthy life with for example, been involved from early on towards solving the problem of peace of mind, by reducing negative impact of our corporate activities mineral resources in regions of conflict, with Murata earnestly tackling on society, environment and natural resources. Our CSR Charter and CSR-related policy list these issues in cooperation with our supply chain. Furthermore, as a company that is expanding our business around the Fair trade and ethics • CSR Charter globe, we are also placing a focus on providing work environments that • Corporate Ethics Policy and Code of Conduct We aim to maintain the highest standards of ethics, so as to be a com- • Human Rights and Labor Policies are appropriate for a diversity of people, without partiality to gender or pany that fulfills its social responsibility and wins social trust. nationality, etc. We respect a diversity of backgrounds and values, we • Occupational Health and Safety Policy globally share the “Murata Philosophy” and the direction that we are • Environmental Policy Management system • Purchasing Policies aiming at while carrying out mutual exchange of personnel between • Quality Policy bases both in and outside Japan, and we are implementing various We will establish a system that ensures compliance with this CSR • Disclosure Policy measures toward offering the best value to society. Charter, and continuously improve the system. • Basic Policies for Activities to Contribute to Society and Local Communities • Basic Policy for Prevention of Cartels and Bribery

Scope of report and information disclosure system

This report is written and edited with care to be concise in order to help readers easily understand Murata’s CSR concept and activities. Detailed information, case studies and environmental performance data from each plant are also provided on the Murata website. De- tailed financial information can be found under “Investor Relations”.

Term of this report

Between April 1, 2015 and March 31, 2016 * Some activities taking place in or before March 2015 or in or after April 2016 are cov- ered in the report as well.

Organizations reported on

Murata Manufacturing Group （Murata Manufacturing Co., Ltd. and 105 subsidiaries inside and outside of Japan）

18 19 Corporate Social Responsibility

The formulation of medium-term CSR targets Establishing medium-term targets for CSR and promoting involvement throughout Murata

In the CSR Management Office and the Environmental & mechanism of management systems that applies the PDCA Safety Management Department, we are involved in activities cycle in order to prevent problems related to human rights and toward the awareness and promotion of CSR （Corporate to labor conditions. Creating work environments that allow a Social Responsibility） at Murata, including initiatives on the diversity of personnel to be effective, as well as implementing environment and society. In 2016, we established the “Mid-Term activities towards permeating the “Murata Philosophy”, are Direction 2018”, which indicates our direction for management also indispensable pursuits. And, since business at Murata also over the next three years, and we have also developed new means working with all of the people in the various companies medium-term targets for CSR in relation to the environment and that cooperate with us, such as our suppliers, we will continue to society. In correlation with the company’s management plan, we strengthen our efforts to permeate the idea of CSR throughout will continue to support a variety of social needs on the basis of the supply chain. these medium-term CSR targets as well. As we perform a variety of activities related to CSR, we are In regard to the environment, we have made countermeasures in cooperation with related departments both within Japan and to global warming, conservation and recycling of resources, overseas. And through the communication with all of the various and contributing to the environment through our products stakeholders, including customers, suppliers, investors, and the priority themes, and we continue to be committed to local communities, we feel the day-to-day expectations placed Murata Manufacturing Co., Ltd. the reduction of environmentally hazardous substances, the on us. So we will remain forward-looking in response to those Executive Deputy President, Representative Director The spirit of our conservation of biodiversity, and activities that contribute to expectations, as we persist in promoting activities that will keep Yoshitaka Fujita Philosophy guides CSR the environment and society. Taking measures against global Murata as an indispensable existence to each local community warming is a particularly important topic that society has and society as a whole. at Murata assigned to all corporations. Thus, as a matter of course, in Photo（ from left） addition to continuing to suppress any increase in greenhouse Murata Manufacturing Co., Ltd. gases through proactive measures, our aim is to increase our CSR Management Office, Administration Group contributions to the environment in general through business. Masayuki Sekiguchi As the concern for water as a valuable resource heightens Murata Manufacturing Co., Ltd. worldwide, along with the pursuit of its more efficient use, we Environmental & Safety Management Department, Administration Group are working to strengthen storm drainage management as well A message regarding CSR Kayo Nakata as risk assessments regarding such calamities as droughts and Hiroaki Otsuka The Environment, Society and Governance... floods. In addition to bolstering risk management in relation to To respond further Acting with awareness and responsibility in each area. our social stance as well, something that is the foundation of to the expectations compliance in response to global challenges, we are building a In order to continuously grow our company, I believe that to nationality and gender, but to specifically build an placed on Murata it is necessary for us to develop our business activities institution and a culture in which people with diverse with consideration to the three aspects of “E” （the backgrounds can work together while fully demonstrating Environment）, “S”（ Society） and “G”（ Governance）. their individual personalities and abilities. Furthermore, we are also strengthening our efforts toward fields of higher The Environment- social contribution in our business, such as, for example, As a company involved in manufacturing, the reduction the improvement of safety in automobiles and improved of our environmental impact is a major theme. In terms convenience in healthcare.

of CO2 emission reduction, one countermeasure to global warming, we defined the target reduction value in basic Governance- units, and we then produced results that exceeded that In terms of governance, a Corporate Governance Code projection. As shown in our world’s smallest, 0.25 × 0.125 was enacted last year and, over and above complying with mm ceramic capacitors, we are also contributing to the that, we will be constantly reviewing our organization and realization of saving resources through the supply of small, management structure, and enhancing the value of our thin, multifunctional electronic components. In addition, existence as a company that is open to the community and we have also embarked on new business with endeavors to society at large. into the field of energy. Murata will continue to promote environmental Our Philosophy contains the phrase “...together with measures rooted in the dual axes of reducing our all our stakeholders,（ being） thankful for the increase company’s environmental impact and contributing to the in prosperity”. Murata exists in partnership with all our environment through our business. stakeholders. This is not only related to the improvement of our economic value, it is an expression of our thoughts Society- toward valuing a presence that is in harmony with society. With regard to our social stance, Murata is committed This idea is at the core of our CSR. Consideration for to ensuring diversity in our employees. We have been the environment, making the most of the diversity in our expanding business globally and have a variety of people human resources, and ensuring the transparency of our working with us the world over. We believe that it is organization... Murata will continue to put into practice the important, not merely to pay attention to issues related spirit of our Philosophy that is at the root of those actions.

20 21 Business and CSR

Bed Sensor Offering a Bed Sensor Solution to Provide New Possibilities to the Healthcare Field Successful global cooperation

In line with our aging societies, there is a information, and transmitting that data “With the development of the Bed Sensor, Although development of the growing need for more patient-friendly, good wirelessly. we have pioneered a new business for the Bed Sensor began with Murata quality and economical, long-term healthcare The Bed Sensor is a good example of medical and healthcare markets that are a Electronics Oy in Finland, it was services. Coupled with the development of Murata innovation targeting new areas focus of Murata’s business strategy. We also ultimately a global collaboration IoT and of cloud services, technology like of business, with its focus on the medical have high interest in the utilization of such that involved Murata (China) remote monitoring is also beginning to spread and healthcare markets as new fields of emerging applications as sleep analysis, and Investment Co., Ltd. and SyChip throughout the medical and healthcare application for sensors that offer excellent are developing new add-on functions to meet Electronic Technology (Shanghai) fields. And, in order to meet the needs of and unique properties. Continuous research those demands,” says Mr. Sten Stockmann Ltd., both of China, along with such markets, Murata is developing sensor based on careful market research as well as (Manager, New Business Development Japan’s Komatsu Murata Manu- solutions that provide new value through work toward developing signal processing Department). facturing Co., Ltd. Photo（ front row, from left） contactless patient monitoring. functions and algorithms have resulted Murata Electronics Oy By simply mounting it to the bed, our “Bed in sensor circuits and wireless modules, Toni Akkala, Sten Stockmann, Yoshitaka Kotera, Rebecca Xu, Sensor” is able to detect the slight vibrations not only for use by healthcare equipment Sami Nurmi, Ulf Meriheinä coming from the patient’s body, thus enabling manufacturers but for system integrators as （back row, from left） biological information to be obtained without well. Joonas Makkonen, Pekka Kostiainen, Hirotaka Fukunaga, Kaisa Heiniö the sensor being directly attached to the * Micro-Electro-Mechanical Systems: Systems with a three-dimensional patient. Incorporating Murata’s ultra-sensitive, microstructure formed through a semiconductor process technology. Photo（ front row, from left） SyChip Electronic Technology（ Shanghai） Ltd. low-noise MEMS* accelerometer along with Kangzheng Wang, Shihui Wu, Takashi Fujikawa, a microcontroller with a special algorithm, Photo（ front row, from left） Yuexia Qi, Zhenglong Wu Komatsu Murata Electronics Co., Ltd. the Bed Sensor contributes to reducing the People-friendly （back row, from left） Yoko Nishiyama, Mai Morinaka, Nobuko Kawahara workload in the healthcare field by being able Jin Li, Wei Zheng, Mark Fan, （back row, from left） to detect whether the patient is in or out of Murata technology Yukinori Maruo, Jinjin Zhou Makoto Yasuda, Hisato Tatsumi, Yasunori Nabetani, Hideo Mura bed, measuring various types of biological is contributing to the evolution of medicine and healthcare.

Murata’s Bed Sensor offers contactless detection, thus reducing patient stress. SCA10H sensor module

Comprised of a sensor and microcontroller, the SCA10H sensor module is designed for healthcare device and equipment manufacturers to incorporate into their own products or into hospital beds. It enables the creation of the optimal solution through the combination with various wireless modules.

22 23 Promoting health, safety, and environmental conservation

Promoting health, safety, and environmental conservation

Health, safety and reduction in accidents Prevention of global warming Conservation of resources and reduction of waste Reduction in water usage

Contributing to the prevention of global warming Reducing the use of water by demon- through the effective utilization of waste heat strating our ability to improve manufacturing The manufacturing process consumes a lot of water through such Wuxi Murata Electronics is a factory that manufactures monolithic ceramic procedures as the cleaning of products. At Izumo Murata Electronics, where capacitors. We use a great deal of energy, and the CO2 emissions here manufacturing is at the heart of our activities, we target improvements are the highest amongst all Murata plants. The utility facilities that are in using a variety of approaches, such as considering whether or not we can operation at this factory, for example refrigerators for air-conditioning and reuse wastewater, and whether or not we can dig deeper and even produce compressors for production, generate heat when they remain in operation things without using water. And, due to this, we were able to reduce water over many hours and they need to be cooled with water, which then turns usage by about 93,000 tons a year. In addition, through these efforts, into hot water with a temperature that reaches several tens of degrees. we were even able to eliminate the need to expand our water treatment Previously, Wuxi Murata simply discharged that hot water, but by beginning facility, which had reached the limit of its processing capacity. to effectively utilizing the heat that it contains, we were able to reduce Japan is often considered to have an abundance of water resources, but the amount of water that can actually be used is quite limited. On top the amount of steam that is used in the plant by 10%. And the amount of always ensuring that pollution is prevented so as not to contaminate of CO2 that we were able to reduce through these efforts totaled 1,700 our precious water resources, we must also pursue more efficient ways tons a year, equivalent to the annual CO2 emissions of about 340 average of its use. In the future, by taking advantage of our abilities to make households. We will persist in searching for other waste and expanding the improvements in the field of manufacturing, we will continue to promote range of our improvements as we continue to promote activities toward the reduction of our environmental impact. preventing global warming.

Photo（ from left） Himi Murata Electronics Co., Ltd. Administration Section Yoshiaki Yamashita Toyama Murata Electronics Co., Ltd. Photo（ from left） Production Engineering Section I, Production Department II Toshihisa Nakamura Murata Manufacturing Co., Ltd. Murata Manufacturing Co., Ltd. Administration Section, Yasu Administration Department Takanori Fujii Environmental & Safety Management Section, Murata Manufacturing Co., Ltd. Environmental & Safety Management Department Kosuke Kawakatsu Administration Section, Yokaichi Administration Department Toshi Usuda Implementing resource-saving activities wherein each Raising awareness of safety through hands-on education activity produces a variety of effects The PFC liquid used in the manufacturing process* is one factor in global At Murata’s Yasu Plant and Yokaichi Plant, we carry out hands-on safety warming, as the majority has conventionally been vaporized after use. At education for all employees, including temporary staff. Through simulated Murata, we have long promoted reducing our use of chemicals that pose experiences of the risks that exist in the manufacturing process, such as a high environmental impact as one initiative toward saving resources, being “pinched”, “trapped” or “shocked” by equipment, as well as those that but, starting from FY2014, we established committees across the Murata occur in general office work, like “hurting your lower back when carrying Group in order to strengthen our efforts toward specifically decreasing heavy objects”, “getting your finger caught in a door” or “getting cut by a PFC emissions. Through trial and error, in FY2015, we introduced devices utility knife”, the aim is to increase everyone’s awareness in regard to safety. that can collect and reuse PFC at both Toyama Murata and Himi Murata. Simulated, hands-on experiences enable us to get employees to notice As a result, we were able to reduce the amount of PFC emitted by 70%. that work-related accidents are not something that only happens to “other Because PFC liquid results in about 6,000 times the greenhouse effect of 2 2 people”, and that it is impossible to know when it might happen to you. CO , that is equivalent to 8,000 tons of CO emissions. It can thus be said Photo（ from left） that this effort is a multi-faceted activity that not only saves resources but Through such educational experiences in safety, the goal is to improve our Photo（ from left） Okayama Murata Electronics Co., Ltd. Wuxi Murata Electronics Co., Ltd. is also contributing to the prevention of global warming. Environment Section, Administration Department Kazuhiro Matsutani employees’ safety awareness, something that is difficult with instruction Environmental Maintenance Section, Administration Department * PFC（ perfluorocarbon） liquid: A liquid chemical whose main constituent elements are carbon and fluorine Izumo Murata Electronics Co., Ltd. that solely involves studying at a desk. Xue Mingsheng, Wu Wei, Wang Xufeng and which is used in the cleaning of electronic components, etc. Production Engineering Section, Production Department II Sakae Fukuda

In order to prevent industrial acci- ■Trend in industrial accident frequency rates At Murata, we are introducing a ■Trend of total CO2 emissions and the rate of At Murata, “zero emissions”* ■Trends for waste output and the comparative Murata promotes reduced and ■Trends for water use and the consolidated and the number of accidents improvement in quantitative basic units unit ratio of production adjusted comparative unit ratio of production dents, Murata combines “tangible” global warming prevention plan was attained in the domestic effective use of water resour- Number of accidents resulting in lost work at Murata efforts like improvements to the toward reducing the total amount group during FY2003. We are ces. Each plant is carrying out Frequency rate for the manufacturing industry Target Standard （%） Standard （%） Standard Target （%） 0 actual facilities together with such Frequency rate for the electronics industry of greenhouse gases emitted from currently tackling zero emis- － 1 － 2 its own activities and we are -5 0 0 -10 “intangible” approaches as edu- Frequency rate at Murata our business activities. Centered -10 -5 sions overseas and the overall -10 ensuring that that information -20 -15 -10 － 26 － 27 － 28 -20 －38 -30 -15 -30 -40 cation and awareness activities on the Global Warming Prevention reduction of waste generation -40 is shared throughout the 20 1.05 1.06 1.06 1.20 － -20 -50 1.00 15.3 -50 0.94 － related to health and safety. The Special Committee, these measures 2 itself. We are also aiming at 44 Murata Group. （1,000 t-CO /year） （1,000 t/year） （1,000 ㎥/year） frequency rate for industrial acci- 15 18 0.90 are being implemented throughout 1,200 strengthening our waste mana- 60 15,000 16 1,000 50 55 12,000 dents at Murata is low in com- 0.54 the Murata Group toward achieving gement organization in order 10 0.60 800 47 0.44 1,024 40 41 1,058 0.41 0.41 12,900

850 9,000 0.39 40

parison with the average for the the corresponding goals. to more surely and more stably 37 13,400 769 35 600 11,700 30 11,200 9 9,100 manufacturing industry*, but we 0.39 6 0.30 process that waste. 6,000 552 5 5 0.34 400 20 remain committed to continually 0.22 200 3,000 0.11 0.13 10 0 0.00 0 0 lowering it even further. ’12’11 ’13 ’14 ’15 ’11 ’12 ’13 ’15’14 0 ’07 ’11 ’12 ’13 ’15’14 ’11 ’12 ’13 ’15’14

* Number of casualties caused by industrial accidents per one million actual working hours

24 25 Employees

Promoting active roles for women Fukui Murata Manufacturing Co., Ltd. Technology Development Department Jerey Leo Aguila Aiming high and making use of childcare experience at work

I examine contracts and other such documents in our Legal Aairs during childcare, but, even if there are many things that do not go as Department and sometimes serve as support for merger & acquisition expected, I can now endure them and am able to enjoy the situation transactions, etc. My major at university was also law, I was put in with the frame of mind as though I am simply riding a roller coaster. charge of legal aairs at work, and I began to see the law as something On the other hand, it is a fact that, due to childbirth and childcare, I with a greater sense of reality. am also not able to do the same content of work and in the same I have experienced maternity and childcare leave two times and I am manner as before. For example, it is di€cult for me now to be in charge now continuing to work under the short working hour system. I think of urgent projects like those that require immediate response to that, by having gone through that experience of childcare, my attitude something that comes in without regard to dierences in time zones. toward work has become more positive. I set up a schedule for work And yet, I think that, instead of becoming irritated or dejected, it is calculated backward from the time I plan to leave the o€ce, I can important to change my thinking to the idea that I am simply experienc- identify the relative importance of each project and the speed and ing a new stage. quality that is required to accomplish it, and I have become clearly Recently, in addition to my previous work, I have now been entrusted Number of foreign employees aware of how to most eectively proceed with my work. From that with the job of creating new mechanisms for global compliance. This is at Murata Group’s domestic experience of dealing with children, I think that I have become strongly content that involves interacting with both domestic and overseas Global rotation to learn a liates on loan from overseas a liates conscious of how to explain, simply and in an easy-to-understand bases, building and establishing a new system that the company has and grow together with manner, the concept and the philosophy behind the law that may be never had before, and promoting that while obtaining the understanding daunting and unfamiliar to those in other departments. In addition, it of all parties concerned. This is something that I too have never been others around the world 45 may be a result of the day-to-day unexpected things that I encountered involved with and it will be a test of my creativity. There will be di€cult （as of March 31, 2016） things, but I will be motivated in this job, while I consider what it is that I am able to do with this new work, what I need to do, what I want to do. At Murata, more and more women are becoming mothers and are still continuing to work in the same way as I have. I appreciate the warm understanding and support that I have received from my family and those around me in the workplace and, in the future, I would like to return the favor by being on the side of those who support such women. And I would like to further enhance my expertise in order to be a presence that is able to support the growth of the company as well. Global rotation

“I want to connect my own growth, which I realized at Fukui Murata, to the growth of Philippine Manufacturing Co. of Murata.”

I joined Philippine Manufacturing Co. of Murata, Inc. （Philippines I was appointed to Fukui Murata, o‹en I am not quite able to keep up at A workplace where Murata）, Murata’s production base in the Philippines, in 2012, shortly meetings where technical terminology is being tossed about. However, a‹er it was established. At that time, the factory had yet to be opened because my co-workers and superiors politely instruct me in line with Rate of utilization of diverse people can and employees numbered only 23 in all. Still, at the job interview, I came my level of understanding, sometimes sprinkling in English, and allow childcare leave at domestic anticipate making use of to learn about the fact that Murata is a global company, the fact that me to gain experience in many dierent jobs in consideration of my o ces of the Murata Group they had a plan for Philippines Murata to become a major production development, I am enjoying this environment where I feel like I am their own experiences and base for monolithic ceramic capacitors, and that, if I put forth the eort growing on a day-to-day basis. In addition to work, I am an instructor of 100% characteristics there, I myself could grow as a person... and so I decided to join. At volunteer English classes that are held regularly at Fukui Murata, and it （Rate of return to work: 95%） Philippines Murata, my job was that of a machine engineer. My main role has been well received by everyone. Naturally I am taught many more was to set up, maintain, and improve machines in order to increase things at Fukui Murata than I can teach, but I would also like to be an production e€ciency. influencer that enables us to learn from each other, and in a way that I I am presently “on loan” to Fukui Murata, the mother plant for myself am a positive stimulus to those around me. manufacturing monolithic ceramic capacitors. The content of my job Philippines Murata is still a young company, in terms of its history, in here is the development of the underlying technology for the terms of age of its employees, and in terms of its experience in stabilization of mass production. Along with the other workers here, I producing monolithic ceramic capacitors. A‹er I return to my duties am involved in a variety of evaluations and analysis in order to improve there, it will be my turn to convey what I was able to learn at Fukui the current state of that process. Because this work is in a completely Murata to the young engineers of Philippines Murata. I would like to Murata Manufacturing Co., Ltd. dierent field from the machine-related job that I had performed at share the knowledge that I have obtained at Fukui Murata, the Legal Aairs Department, Administration Group Philippines Murata, it is nonstop study for me every day. In terms of connections that I have made here with various people, with my fellow Shoko Fukui communication, although I studied at a Japanese language scool before workers at Philippines Murata and continue to grow together with them.

26 27 Corporate governance Society and the community

Further strengthening corporate governance and meeting the expectations of stakeholders

With the Ordinary General Meeting of Shareholders that was held in June Previous Company with a Board of Statutory Auditors 2016, Murata has transitioned from its previous “Company with a Board of Statutory Auditors” to a “Company with Audit and Supervisory Committee”. General Meeting of Shareholders Historically, Murata positions corporate governance as one of our most Election and Election and important issues in management and, in giving due consideration to all of dismissals dismissals our stakeholders, we have been working to reinforce corporate governance by strengthening our supervisory and executive functions through Board of Directors Board of Statutory Auditors the introduction of a system of Vice Presidents and by improving the Audits transparency of management through the election of multiple independent Outside Directors. Directors Outside Directors Outside Statutory Auditors Auditor

This time, in order to further improve our corporate governance while Supervision Selections and also increasing the company’s corporate value, we have transitioned to dismissals a Company with Audit and Supervisory Committee with the following purposes.

Representative Directors ① Out of the 12 directors, 4 shall be independent Outside Directors, thus increasing the proportion of independent Outside Directors within the overall Board of Directors1. This will further ensure that perspectives from outside the company are taken into account, and it can be expected Since June 29, 2016 Company with Audit and Supervisory Committee to improve the transparency of management. ② By giving the Directors who are the Audit and Supervisory Committee General Meeting of Shareholders Members voting rights on agendas at Board of Directors, it will be Election and Election and possible to strengthen the supervisory function in relation to executive dismissals dismissals officers. Board of Directors ③ In accordance with the provisions of the Articles of Incorporation Audit and Supervisory Committees and a resolution of the Board of Directors, it will promote decisions on important business operations being delegated to the executive officers, management decisions being made more rapidly, and more agility will Directors Outside Directors Outside Directors Directors be available in the execution of business as the scope of the company’s Selections and Audits and Creating and dealings expands. Supervision dismissals Supervision, etc. protecting ④ A Company with Audit and Supervisory Committee is a system that is Forest of the Future, more easily accepted worldwide as a global standard. Murata has been the forest in developing our business globally2, our ratio of foreign stockholders is high3, and it is our belief that this will also meet the expectations of our now under construction cooperation with many stakeholders. Representative Directors local citizens Based on the fundamental policy of our social and community contributions, which is “Wanting 1: There were two independent Outside Directors out of the nine * What is a Company with an Audit and Supervisory Committee? the existence of Murata to be the pride of that area... for Murata to be a company that is a Directors in FY2015（ Percentage of independent Outside Di- With the revision of the Companies Act, which was entered into force on May 1, 2015, a Company with Au- rectors: 22.2%） dit and Supervisory Committee is an organizational structure for a newly formed corporation that facilitates source of joy,” each plant promotes its own “Murata Forest” woodland preservation activities. 2: Overseas sales ratio: 93.5% from the results of the full-year （ the functions of Outside Directors. Without Auditors（ nor a Board of Auditors）, the establishment of an Audit ending March 31, 2016 ） and Supervisory Committee（ consisting of three or more members from the Board of Directors, and with the From 2007, our Head Office has participated in the “Kyoto Model Forest Movement” that is 3: Ratio of stock held by foreign companies: 41.8% as of March （ majority being Outside Directors）, this Committee is responsible for audits and has the right to state opinions 31, 2016 ） at the General Meeting of Shareholders in regard to matters concerning Directors（ nomination and remunera- sponsored by Kyoto Prefecture, and has been actively cooperating with the people of Kameoka tion）. By adding specific provisions in the Articles of Incorporation, it is also possible to delegate decision-mak- ing on important individual business operations to the executive officers. City in that prefecture. With our employees and their families participating as volunteers eight times a year, a total of about 500 people from Murata have now joined in this Movement. Activities are centered on thinning and weeding of forests, and the thinned wood is effectively used in making such items as benches, stairs, nameplates for trees, etc. Activities like tree inspection groups, forest activity classes for children with few opportunities to come in contact with Nature, actual rice planting experiences with the support of the local people, buckwheat noodle making, and classes on cooking with medicinal herbs, etc., are being offered as well. Furthermore, from FY2014, we have held the “Murata Forest: Handmade Market” event in order to inform more people about the importance of forest conservation and about our specific activities. We have held such activities as displays and sales featuring handmade Improving the goods and farm-fresh local vegetables, woodworking classrooms, music performances, and transparency of panel exhibitions about our forest conservation activities, so that even those not particularly management and interested in the forest can easily enjoy taking part. Through the Murata Forest, we hope to have as many people as possible gain an interest in the forest, in Nature, and want to protect it. the company’s FY2016 will be the 10-year milestone since we commenced Murata Forest activities. But, corporate value even after 10 years, there are still a lot more things for us to do. As we continue these activities from here on, we are currently constructing a “Future Forest”, a place that everyone can enjoy!

28 29 CSR activities:CSR Targets andresults 30 CSR activities:Targetsandresults ■ the implementationofabroadrangemeasures. Murata commitsitselftocontinualimprovementinprioritythemeareasthrough 6. Environmental&social Results for 2015environmental fiscal targets, medium-term targets for 2016to fiscal 2018,andtargets fiscal for 2016 fiscal

contribution activities 4. Saving resources & recycling 2. Global warming countermeasures considerate products Environmentally- 5. Biodiversity 3. Chemicals （ （ （ （ and packaging （ 1 3 2 （ 2 ） ） ） processes Item 1 4 ） Production Production Containers 1. ） Logistics ） sites Waste Water （ （ （ （ （ 28% overFY2007 by production net of unit per emissions waste Reduce product atproductionsites gistics Achieve zeroemissions over thepreviousfiscalyear 1% by production net of unit per substances chemical hazardous environmentally of use in-process the Reduce over FY2007 5% by production net of unit per substances chemical hazardous environmentally of use in-process the Reduce Reduce quantitative basic units of CO of units basic quantitative Reduce ous chemicalsubstancescontainedinproducts hazard - environmentally replace and reduce to Continue Implement measures to reduce CO reduce to measures Implement duction by60%overFY2007 ieae rdcs n environmentally-considerate and technologies products siderate environmentally-con- of lineup the expand to Continue rs CO Grasp production by15%overFY2012 Reduce CO Reduce to helpshapeasocietywithlowenvironmentalimpact Increase sales of environmentally-considerate products Continue environmental&socialcontributionactivities mentary andjuniorhighschoolchildren ele- for biodiversity in education environmental Provide tion educa- biodiversity with employees provide to Continue Reduce rawmateriallossratios improve- through ments topackagingmaterial impact environmental the Reduce Overseas Overseas In Japan Overseas In Japan ） ） 2 ） ） ） msin ad uniaie ai uis by units basic quantitative and emissions 2 emissions from logistics per unit of real pro- real of unit per logistics from emissions （ production methods Targets forFY2015 ） 2 emissions from lo- from emissions 2 emissions from emissions （ （ 44% overFY2007. reduced were production net of unit per emissions Waste The system for grasping CO grasping for system The implemented. be to continued sites production at product by units basic fices. of- and plants our of greening the for and Forest” “Murata the as known woodlands domestic the of preservation the for activities with along implemented, continually was children school high junior and elementary for education environmental societies, and communities local with ship relation- close a in is that management business Towards improvement for Measures Quantitative basic units of CO of units basic Quantitative 46% overFY2007. reduced was production net of unit per substances cal chemi- hazardous environmentally of use in-process The plemented ineachindividualprocess. ing theenvironmentalimpactwereimplemented. reduc- to lead that materials packaging to Improvements zhen, Taiwan,ThailandandMalaysia. Shen- Wuxi, sites: 5 at maintained were emissions Zero tivities. ac Forest” “Murata the within implemented was people and trees between relationship the to regard in Education plemented. im- was education that and education employee new for materials the in incorporated was biodiversity on Content ed. proceed- products existing of replacement sequential and users many from obtained was Approval advanced. were products environmentally-considerate of sales increasing and for, approval obtaining proposing, towards Activities were reduced15%overFY2012. CO reduced by30%. was truckloads of number the region, China Greater the in bases overseas at airport the to factory the from port trans- of e‘ciency carrying the in improvements Through thatsupportminiaturizationandenergysaving products environmentally-considerate of lineup expanded an to led That continued. was technologies considerate environmentally- of development and environment, the consider that development and design for set were Goals were reduced72%overFY2007. 1% overthepreviousfiscalyear. reduced was production net of unit per substances cal chemi- hazardous environmentally of use in-process The was carriedoutasplanned. products our in contained substances chemical ardous haz- environmentally of replacement and reduction The In Japan Overseas 2 emissions from logistics per unit of real production real of unit per logistics from emissions ） ） Results forFY2014 （ 2 emissions and quantitative and emissions e.g., higher yields higher e.g., 2 emissions from production from emissions ） were im- were - Achieve- ment ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ FY2016 toFY2018medium-termtargets Not setasaprioritytheme • Develop measures to establish assessment methods for methods assessment establish to measures Develop • production real of unit per usage water average Improve • Not setasaprioritytheme Not setasaprioritytheme tion to CO to tion contribu- of amount the for methods evaluation Establish million tonCO 1.2 to FY2018 in emissions gas greenhouse total Reduce to FY2015average 3% by FY2018 to FY2016 in tion produc- real of unit per emissions waste average Improve Not setasaprioritytheme Not setasaprioritytheme Not setasaprioritytheme Not setasaprioritytheme Not setasaprioritytheme Not setasaprioritytheme products Not setasaprioritytheme Not setasaprioritytheme Not setasaprioritytheme and reducewaterrisks FY2015 average 3% by FY2018 to FY2016 in 2 emission reduction at the usage stage of our of stage usage the at reduction emission 2 orless ） ） （ compared to FY2011 to FY2011 to compared （ compared to FY2011 to compared • Strengthen rainwater discharge management toward management discharge rainwater Strengthen • • Investigatewaterriskassessmentmethods produc- real of unit per usage water average Improve • average Y06 y 1% by FY2016 in production real of unit per emissions waste Improve gets tar- medium-term for plan FY2016 implement and Set rule calculation a for computations trial do and Formulate sion reduction reducing theriskofpollution 1% FY2015 average by FY2016 in tion （ dra¦ ） ） on the amount of contribution to CO to contribution of amount the on ×: Notachieved △: Nearlyachieved ◯: Achieved Targets forFY2016 （ ） oprd o Y01 o FY2015 to FY2011 to compared （ oprd o Y01 to FY2011 to compared 2 emis- ■ Item 4. Society and 3. Strengthening risk Results for 2015socialtargets, fiscal medium-term targets for 2016to fiscal 2018,andtargets fiscal for 2016 fiscal 6. Employees 5. Suppliers 2. Promoting compliance 1. Internal control systems community management • Support active roles for senior-level employees: Hold 8 career 8 Hold employees: senior-level for roles active Support • • Holdin-houselecturesonthesuccessandcareersofwomen paths career select to employees enable to system a Implement • • Continue human rights education: Hold once a year as social as year a once Hold education: rights human Continue • Hold harassment: prevent to education and awareness Continue • ization oftheinformationcollectionmechanism system- through timeframe corresponding the reducing and e‘ciency research improving at aim and accidents, or disaster of times in enced refer- be can that sites production material on information updating timely by information accurate highly on based emergencies to Respond compliance on information communicate regularly to Continue • Permeate complianceawareness • Conductcomplianceverificationtestsandsurveys companies M&A and bases new for control internal of expansion the pro- mote and globalization, to response in audits e‘cient Conduct • • trol con internal of development the promoting by and etc., lations, regu- internal Incorporation, of Articles the regulations, and laws with compliance in problems, serious “zero” achieve to Continue tie blne ewe wr ad aiy life family and work balance” between balance a strike employees help to system support a establish firmly and Enhance • Recognize newly generated risks in a timely manner, and make and manner, timely a in risks generated newly Recognize • contin- perform and measures risk existing of validity the Verify • resources in regions of conflict of regions in resources mineral on information investigate organizations, industry with closely cooperate problems, mineral conflict the to responses As • Continue to flexibly rebuild the ongoing system for implement- for system ongoing the rebuild flexibly to Continue • • Holdgroupdiscussionsusingcasemethods,etc. Implement complianceeducation • Strengthen thefoundationofglobalcompliance “KYT” educa- assessment Risk education: safety and health Promote • sys- management safety and health occupational an Construct • of occurrence the prevent to measures promote and Continue • ers, andcontinueeŒortstouselowriskmaterials • Provide education on globalization on education Provide • loan: on employees foreign of number the increasing Promote • grad- university new 5 Hire workers: foreign employing Continue • sharing the and Philosophy” “Murata the of permeation Promote • pliers sup- by compliance CSR check regularly to system a constructing by demands customer and situations social changing to sponds corre that procurement CSR of implementation the Promote （ Continue local contribution activities rooted in the neighborhood the in rooted activities contribution local Continue Continue to oŒer science and environmental education for chil- for education environmental and science oŒer to Continue management trainingsessionsduringFY2015 development program career a through reshu›ing Practice aptitude: their to according class education not undergonetrainingonsexualandpowerharassment have who managers those for FY2015 during sessions training 4 promotion activities etc. preservation, forest factories, of greening as such community, dren of measures–functionquicklyandreliably implementation and planning to evaluation risk from – cycle the global risks of range wide a accommodate to order in improvement uous cordance withthesituationofeachcountryandregion ac- in Bribery” and Cartels of Prevention for Policy “Basic the ing and gi¦s” tion: 30times and maintainat27plants plant one at certification external OHSAS18001 Acquire tem: industrial accidents course Chinese and 20 inFY2015 uate employee 30 Philosophy: the times sharing on workshops Hold measures: of Partially revise the Corporate Ethics Policy and Code of Conduct of Code and Policy Ethics Corporate the revise Partially “observance of the Anti-Monopoly Law” and “entertainment and Law” Anti-Monopoly the of “observance （ accident predictiontraining ） : Hold1visitationdayforchildrenofemployees ） ） Oe a Egih n a hns improvement Chinese a and English an Offer : Targets forFY2015 （ monthly （ ） smelter information smelter ） （ education:5times strengthen ability in English in ability strengthen ） （ with suppli- with “work-life - - • Training to strengthen English ability was carried out in Japan. in out carried was ability English strengthen to Training • total The 20. was loan on accepted employees foreign of number The • graduate university new 4 employed: be to continued workers Foreign • - Otherworkshopswereheldateachsiteanddepartment - Trainingfornewemployeeswasheld3times. held were companies a‘liated overseas of employees for Workshops - - Philosophydiscussiongroupsforcompanyo‘cerswereheld13times. • WorkshopswereheldonsharingthePhilosophy: temized informationcollectionwascompleted. sys- of introduction the production for preparation and materialcontinued, were sites on information of updating and Research • 8careermanagementtrainingsessionswereheld. • Lecturesoncareerautonomywereheld. • Oneclasswasheldonhumanrightsassocialeducation. have who managers those for held were sessions training Two • • October was made Compliance Month at Murata and affiliated and Murata at Month Compliance made was October • published was awareness compliance on magazine email An • Permeate complianceawareness bases thatwereaddedastargetslastyear. M&A and basesoverseas two the at conducted were newaudits follow-up companies, for control internal expanding to regard units business making including expanded, be to continued control internal of scope The social and local contribution activities at the global level were continued. level global the at activities contribution local and social and sites, domestic to addition in factories ex- overseas to gradually panded were forests local of preservation and offactories, greening children, for education environmental and Science Murata at workplace each in conducted were discussions Group • Implement complianceeducation the ArticlesofIncorporation,internalregulations,etc. regulations, and laws with compliance in achieved was problems serious “zero” and continued, was control internal of Promotion dren ofemployees,washeld. chil- for day visitation a Corps”, Experience Work Kids: “Murata of lossatthetimeoccurrencewasverified. minimization the and risks those of realization the preventing of eŒectiveness the and owners, risk the are who members porate cor- the of departments the on centered regularly, checked were overseas and Japan in measures related and factors risk Various • The Corporate Ethics Policy and Code of Conduct of Code and Policy Ethics Corporate The • Strengthen thefoundationofglobalcompliance Risk assessment education was held 46 times and KYT education KYT and times 46 held was education assessment Risk as promoted was employees for education safety and Health • and plant 1 at acquired was certification external OHSAS18001 management safety and health occupational an of Construction • were measures and organized was committee special new A • products, investigationwascompleted. some for except and, investigated was smelters on Information • A control process in order to prevent cartels was introduced at introduced was cartels prevent to order in process control A • suppliers wasconducted. by compliance CSR of status the confirm to order in Investigation number offoreignemployeesonloanattheendFY2015was45. employee werehired. 4 times. not undergonetrainingonsexualandpowerharassment. implemented. were surveys and tests verification compliance and companies, monthly tal attendancewas190employees. nations weredi‘cult,includingethicaldilemmas. determi- where cases using companies, a‘liated domestic and was held18times. noted below: maintained at27plants. system waspromotedasnotedbelow: strengthened topreventtheoccurrenceofindustrialaccidents. bribery wasimplemented. and cartels on e-learning and a‘liates, domestic its and Murata partially revised. gi¦s” and “entertainment and Law” Anti-Monopoly the of （ 12 issues/year Results forFY2014 （ 2 departments 2 ） . ） ） a new target of that. In that. of target new a （ “observance （ The to- The ） was Achieve- ment ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ △ ○ • Aim at further strengthening the language skills of employees of skills language the strengthening further at Aim • ac- the and employees foreign of hiring the promoting Continued • • ContinuetoholdworkshopsonsharingthePhilosophy Philoso the “sharing to related items on score the that Ensure • transparent highly and effective more for cycle PDCA the Develop • for systems ongoing of operation the guide and supervise to Continue • Strengthen thefoundationofglobalcompliance matters otherthandisastersandaccidents to management risk procurement of targets the expanding ther fur- by risk lower with purchasing stable implement and Introduce • Aim at the proportion of women in management trainee posi- trainee management in women of proportion the at Aim • in men of participation the promoting toward efforts Implement • • Implementeffortstowardrealizingdiversityinwaysofworking autonomy career of awareness the toward measures Introduce • • Introduce company-wide education once a year from FY2016 in FY2016 from year a once education company-wide Introduce • conducting management reviews,etc. committees, in performance evaluating and suring mea- assessment, risk through problem improving and extracting goals, setting in cycle PDCA the implement effectively and bor”, La- and Rights Human on System “Management a establish Firmly • Disseminate information over the intranet, such as on the latest the on as such intranet, the over information Disseminate • Permeate complianceawareness that isasourceofjoy”atgloballevel company a be to Murata for ... area that of pride the be to Murata of existence the “Wanting Founder, our of philosophy the Realize enlightenment and education implementing continue and Plan • Implement complianceeducation creasing Murata’scorporatevalue in- at aim of an in transparencyauditing, of eŒectiveness thethe and management improving by growth sustainable Realize • Continue to support the wholesome development of children, of development wholesome the support to Continue • sup- balance” “work-life of awareness fostering at further Aim • conventional the of analysis and into investigation Conduct • ment asapartofday-to-dayoperations manage- risk of concept the permeate and eŒectively, functions level corporate the at management risk for PDCA the that Ensure “Zero” incidenceofseriouswork-relatedaccidents suppliers major by compliance CSR of status the of confirmation Complete （ Promotion Committeethatisheldtwiceayear Compliance the at Secretariat the by reported is which etc., monitoring, education, compliance global of results the and plan annual the prove ap- and verify to process a including by activities promotion compliance overseas subsidiariesthroughcooperationwithheadquarters implementing tive roleglobally diversity inmanagement further toward work and loan, on employees foreign of ceptance of that than better is survey employee FY2015 FY2017 an in phy” with clericaljobs,andimplementmeasurestothatend 40% and jobs technical with 10% being graduates new for tions childcare for eachjob crease employeesensitivitytothoseissues in to order in labor, and rights, human harassment, to regard aim atraisingemployeeawareness an in surveys, and tests comprehension conduct to continue and regulations, and laws various and compliance to regard in trends edge andawarenessinregardtocompliance knowl- of level general the raising broadly at aim that activities who willleadthenextgeneration port amongemployeesandattheworkplace system towardeŒectiveutilizationonceproblemsareidentified the of review a consider and system, support balance” “work-life English, Chinese English, FY2016 toFY2018medium-termtargets the “Basic Policy for Prevention of Cartels and Bribery” in Bribery” and Cartels of Prevention for Policy “Basic the ） , and develop personnel who can play an ac- an play can who personnel develop and , - - • Hold 13 career management training sessions and conduct career in- career conduct and sessions training management career 13 Hold • 4. Supportactiverolesforsenior-levelemployees em- those for work to returning for system the expand and Introduce • 3. Beinvolvedtowardpromotingtheactiveparticipationofwomen design career autonomous toward consciousness in reform a Promote • 2. Beactivelyinvolvedsothatcareerformationandgrowthispossible at n mtra pouto st dtbs ta cn e refer- be canenced intimesofdisasteroraccidents that database site production material and the part of updating timely and expansion the promoting Continue nies compa- M&A and bases new for control internal of expansion the promote and globalization, to response in audits e‘cient Conduct • Establish a committee structure for considering and promoting aware- promoting and considering for structure committee a Establish • 1. Startpromoting“diversity&inclusion”atMurata promot- to related framework PDCA a implement and Maintain • implement- for system ongoing the rebuild flexibly to Continue • Strengthen thefoundationofglobalcompliance • • Provide education on globalization on education Provide • loan: on employees foreign of number the increasing Promote • grad- university new 5 Hire workers: foreign employing Continue • • HoldworkshopsonsharingthePhilosophy:20times “Murata the sharing for measures and of permeation Promote • 3. Continue human rights education: Hold once a year as social as year a once Hold education: rights human Continue 3. half first the in employees all for education awareness out Carry • who managers those for FY2016 during sessions training 4 Hold • 2. Continueawarenessandeducationtopreventharassment • CarryoutawarenesseducationforallemployeesinFY2016 Sys- “Management a creating for mechanism the Construction 1. • Conductcomplianceverificationtestsandsurveys compliance on information communicate regularly to Continue • Permeate complianceawareness views sothatthosemeasuresarestrengthenedfurther re conduct and eŒective, are measures those not or whether verifying on focus faces, Murata that risks important the identify measures, related of evaluation and implementation the to level global a on risks of investigation the from out carry Continually • Continue to participate in forest preservation activities and events in events and activities preservation forest in participate to Continue • • Holdgroupdiscussionsusingcasemethods,etc. Implement complianceeducation trol con- internal of development the promoting by and etc., lations, regu- internal Incorporation, of Articles the regulations, and laws with compliance in problems, serious “zero” achieve to Continue tie blne ewe wr ad aiy life family and work balance” between balance a strike employees help to system support a establish firmly and Enhance • Promotetheintroductionofhands-on education • Introduceamethodofpatrolthatcanidentifyunsafebehavior • “Zero”incidenceofseriouswork-relatedaccidents improve thestatusofthatcompliance and manage to eŒorts promoting continue and issues, CSR latest the reflect that suppliers for criteria compliance CSR the Redefine terviews care, etc. child- to due job their in continuing in di‘culty experience who ployees ment andcareertraining manage- for activities awareness implement and working, of ways and in-house lectures,etc. activities ness ing compliance cordance withthesituationofeachcountryandregion ac- in Bribery” and Cartels of Prevention for Policy “Basic the ing 30 inFY2016 uate employees Philosophy”: activities contribution local and social in participate proactively can employees which in culture corporate a foster and community, neighborhood the sci- ence andtheenvironment in interest an gain to them for opportunities the expand and dren, class education of FY2016topreventharassment have notundergonetrainingonsexualandpowerharassment tem onHumanRightsandLabor” promotion activities course Chinese and Enhance the content of science and environmental education for chil- for education environmental and science of content the Enhance ） : Hold1visitationdayforchildrenofemployees （ ） Oe a Egih n a hns improvement Chinese a and English an Offer : disseminating messages from Directors, etc., holding etc., Directors, from messages disseminating Targets forFY2016 （ ） andthemeslike“diversityinclusion” monthly ） （ strengthen ability in English in ability strengthen ×: Notachieved △: Nearlyachieved ◯: Achieved （ “work-life - 31 Opinion from a third party Murata sites worldwide

Profile Taking a close look Murata sites worldwide at CSR at Murata

In line with their medium-term management plan, Murata has for- Sites in Japan

mulated medium-term targets for CSR starting from the current Murata Manufacturing/ Head O„ce・Branch・Plant and Division・Sales O„ce Domestic subsidiaries fiscal year. A three-year CSR plan in relation to the environment Head O„ce Murata Manufacturing Co., Ltd. Fukui Murata Manufacturing Co., Ltd. Wakura Murata has also been established in conjunction with that. I think that this Branch Tokyo Branch Izumo Murata Manufacturing Co., Ltd. Manufacturing Co., Ltd. is very important, in the sense that company management will be Plants and Yokohama Technical Center / Yasu Division / Toyama Murata Tome Murata more closely linked to CSR and environmental activities. Because Division Manufacturing Co., Ltd. Yokaichi Plant / Nagaoka Plant Manufacturing Co., Ltd. the ultimate goal of CSR is the sustainable development of both Ogaki Murata Sales O„ce Sendai / Mito / Saitama / Tokyo / Tachikawa / Hamamatsu / Komatsu Murata business and society, linking CSR and environmental activities with Manufacturing Co., Ltd. Manufacturing Co., Ltd. Nagoya / Azumino / Kyoto / Kobe / Okayama / Fukuoka the central issues of corporate management is absolutely essential. Kanazawa Murata Asuwa Murata Manufacturing Co., Ltd. Implementing CSR contains many challenges but, among them, Manufacturing Co., Ltd. Anamizu Murata making it easy to work in a company that incorporates diversity Okayama Murata Manufacturing Co., Ltd. Manufacturing Co., Ltd. is particularly important. Since it seems that Murata is actively Kanazu Murata Murata Land & Building Co., Ltd. involved in promoting active roles for women, I think that setting Manufacturing Co., Ltd. Murata Eiko Co., Ltd. some specific targets there will be a subject for future discussion. Sabae Murata Murata Active Partner Co., Ltd. Global rotation is also a very important system, so communicating Manufacturing Co., Ltd. Murata Electronics Co., Ltd. technology worldwide is also a major responsibility for a global Graduate School of Iwami Murata Manufacturing Co., Ltd. Murata So•ware Co., Ltd. company. If such actions as dialogue with stakeholders can also Business Administration, Hakui Murata Manufacturing Co., Ltd. Kobe University Murata BUNSEKI Partner Co., Ltd. be incorporated overseas, I feel like Murata’s activities will be con- Himi Murata Manufacturing Co., Ltd. Professor Tokyo Denpa Co., Ltd. veyed even more concretely. Katsuhiko Kokubu Azumi Murata TOKO, Inc. The “Murata Report” combines an introduction of the company’s Manufacturing Co., Ltd. business with its CSR Report, while the preparation of “Integrated Komoro Murata Manufacturing Co., Ltd. Reports”, containing both an Annual Report and CSR Report, is Others

on the rise around the globe. So what if Murata, whose volume of TOKO Inc. Group consists of 3 domestic sales is increasing rapidly and whose global presence is growing companies（ including TOKO Inc. itself） and 22 companies abroad. significantly, considered taking this opportunity to develop their Report into just such an “Integrated Report”? If they were to adopt such a style, it would enable them to demonstrate the kind of value Sites outside of Japan that the use of their business model can actually create for society, North & South America Asia so I think that not only would it hold merit as a means of disclosing U.S.A. Murata Electronics North America, Inc. China Murata（China）Investment Co., Ltd. information on CSR, but it would also exert a positive impact on Murata Power Solutions, Inc. Wuxi Murata Electronics Co., Ltd. the Company’s management strategy. Peregrine Semiconductor Corp. Shenzhen Murata Technology Co., Ltd. In the world of CSR, the setting of priorities based on specific Canada Murata Power Solutions（Toronto）ULC Murata Electronics Trading（Tianjin）Co., Ltd. “materiality”（ importance） has been attracting worldwide atten- Mexico Murata Electronics Trading Mexico, S.A. de C.V. Murata Electronics Trading（Shanghai）Co., Ltd. tion. This means not only thoroughly dealing with a wide range of Brazil Murata World Comercial Ltda. Murata Electronics Trading（Shenzhen）Co., Ltd. matters, it also emphasizes taking specialized approaches to cer- Others SyChip Electronic Technology（Shanghai）Ltd. tain issues. In order to accomplish this, I believe that it is necessary Murata Power Solutions（Shanghai）Co., Ltd. to maintain a balance between a benchmark type of management Europe Foshan Murata Minmetals Materials Co., Ltd. and an “Action Plan” style of management. Japanese companies Netherlands Murata Electronics Europe B.V. Dongguan Murata Electronics Co., Ltd. tend to strongly prefer the use of action plans, but it is not always Germany Murata Elektronik GmbH Hong Kong Murata Company Limited practical to aim at having all content continue to improve each and U.K. Murata Power Solutions（Milton Keynes）Limited Murata Power Solutions（Hong Kong）Limited every year. I think that utilizing a benchmark type of management Murata Power Solutions（Celab）Limited Taiwan Taiwan Murata Electronics Co., Ltd. in an aim at improving quality is also important. Peregrine Semiconductor UK Ltd Korea Korea Murata Electronics Company, Limited France Murata Electronique SAS Singapore Murata Electronics Singapore（Pte.）Ltd. Peregrine Semiconductor Europe Thailand Murata Electronics（Thailand）, Ltd. Finland Murata Electronics Oy Thai Murata Electronics Trading, Ltd. Others Malaysia Murata Electronics（Malaysia）Sdn. Bhd. We also have sales oŒces in the United Kingdom, Italy, Spain, Hungary and Switzerland. Philippines Murata Electronics Philippines Inc. Philippine Manufacturing Co. of Murata, Inc. India Murata Electronics（India）Private Limited Vietnam Murata Electronics（Vietnam）Co., Ltd. Others

32 33 Executives, Stock information and Major shareholders

Executives As of July 1, 2016 Stock information As of March 31, 2016

Board of Directors Number of shares outstanding at the end of current term 225,263 thousands of shares President Tsuneo Murata Number of shareholders at the end of current term Executive Deputy President, 55,589 Representative Director Yoshitaka Fujita Number of shares outstanding（ unit: one thousand） Directors Toru Inoue ■ Financial Institutions ■ Foreign Companies ■ Domestic Companies Norio Nakajima ■ Own Shares ■ Individual Investors & Others Hiroshi Iwatsubo Own Shares Individual Investors & Others 13,560（6.0%） 21,333（9.5%） Yoshito Takemura Satoshi Ishino Domestic Companies 9,134（4.0%） Takashi Shigematsu No. of Shares Outstanding （Outside Director） Foreign Companies 94,114（41.8%） 225,263 （unit: one thousand） Audit and Supervisory Committee Member, Board Members Junichi Tanaka Financial Institutions 87,121（38.7%） Hiroaki Yoshihara （Outside Director） Stock exchange listing Masakazu Toyoda ［Domestic］ Tokyo Stock Exchange First Section （Outside Director） ［Overseas］ Singapore Exchange Hiroshi Ueno （Outside Director）

Major shareholders As of March 31, 2016 Vice Presidents Number of shares Name Ownership（ %） （unit: one thousand） Executive Vice Presidents JP MORGAN CHASE BANK Toru Inoue 15,526 7.3 380055 Norio Nakajima Japan Trustee Services Bank, Ltd. 12,082 5.7 Yuichi Kojima （Trust Account） Nippon Life Insurance Company Satoshi Sonoda 7,361 3.5 The Master Trust Bank of Japan, Ltd. 6,801 3.2 Hiroshi Iwatsubo （Trust Account） Senior Vice Presidents STATE STREET BANK AND 6,710 3.2 Yoshito Takemura TRUST COMPANY Satoshi Ishino The Bank of Kyoto, Ltd. 5,260 2.5 Meiji Yasuda Life Insurance Company Masahiro Ishitani 5,240 2.5 The Shiga Bank, Ltd. 3,551 1.7 Kenichi Mizuno CBNY-GOVERNMENT OF NORWAY 3,350 1.6 Vice Presidents Takehiro Konoike STATE STREET BANK 3,014 1.4 Hideki Maruyama WEST CLIENT - TREATY 505234 Yutaka Tada （Note） Fellow Norio Sakai The company holds 13,560 thousand shares of its own stock. As these shares do not confer voting rights, they are excluded from the above table. Vice Presidents Ryuji Miyamoto Yoshikazu Namasuya Kiyoshi Iwai Toshikazu Sasaki Etsuo Hayakawa Nagato Omori “EMIFIL”, “CERALOCK” and “Ionissimo” are trademarks or registered trademarks of Murata Manufacturing Co., Ltd. Ken Tonegawa

34 M urata Report 2015

Corporate Report CSR Report

www.murata.com This pamphlet is printed with plant-based ink for environmental consideration. Printed in Japan '16/8/7K