M urata report 2017

Corporate Report CSR Report

www.murata.com

This pamphlet is printed with Printed in Japan '17/8/7K plant-based ink for environmental consideration. English version Innovator in Electronics Contents

Murata’s components are everywhere. Corporate 02 Innovator in Electronics Though o en unseen, our products are essential parts of the electronic report 03 Contents devices you are using throughout each and every day: mobile 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, automobiles, and energy management systems. 08 Products by application

Innovator in Electronics 12 Target markets 14 Financial highlights The world keeps on changing. The world of electronics is changing even faster. 16 Global network As an Innovator in Electronics, Murata has always followed its corporate philosophy of contributing to the advancement of society and the electronics industry. Moving forward, we will continue to anticipate and consider the needs of CSR report 18 CSR commitment the global society and our customers, and to develop advanced technologies and high-value applications. 20 Corporate Social Responsibility We will keep on innovating and shaping the future of the world of electronics. 22 Business and CSR 24 Promoting health, safety, and environmental conservation 26 Employees 28 Responsibilities and actions in relation to suppliers 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

Firming up our foundation and gathering the group’s energies to spring ahead

The First Year of Mid-Term Direction 2018 —Strengthening Our Foundation Murata aims to maintain sustainable growth as the world’s top supplier of components, and to guide the company’s activities we have created Mid-Term Direction 2018 as a three-year plan. Murata’s business has doubled in the last five years. With this and other significant changes taking place in the business environment, we utilized FY2016—the first year of the plan—to strengthen our business foundation. In Murata’s core market—communications—growth has slowed in the production of standard cellular phones, but with a shi toward more advanced features, we are seeing strong growth in components for smartphones. Various types of module technology and RF technology form the basis for the extensive range of Murata’s product lines, from individual components to modules, through which we provide new value to customers on a daily basis. We answer the demand from customers with a deep catalog of products and a steady system of supply enabled by good supply chain management.

Combining technologies with the strengths of our personnel to take us into the future

We plan to strengthen our core business—communications—while working to expand business in such key markets as automotive, energy, and healthcare. Murata has recently entered into new partnerships and made acquisitions. Our aim now is to integrate newly acquired technologies and ideas with our own technologies and expertise built up over time to achieve sustainable growth. We will also work to enhance our monozukuri （manufacturing）, technology development, and human resources development, along with other fundamental areas of doing business. Murata is a global enterprise and we employ people in many locations worldwide. We therefore actively embrace a policy of diversity and inclusion that we are promoting groupwide. At the same time, we continue to We contribute to treasure the Murata Philosophy, the foundation of our corporate culture. the advancement of society As an innovator in the electronics industry, we put our full eort into supporting our customers to allow them to carry out their vision. I would like to once again express my sincere gratitude to our customers and many other stakeholders for their support, which has led to Murata’s growth. We will by enhancing technologies and skills do everything in our power to continue to build the future of electronics together with you all. applying scientific approach creating innovative products and solutions being trustworthy Chairman of the Board and President and, together with all our stakeholders, thankful for the increase in prosperity.

04 05 Murata technologies

Product design technology

Murata technologies From single-function components to modules and on to total solution proposals, Shaping the value that Murata has provided over the years continues to evolve. We are the future involved in development of the technologies and products that can promptly Shaping the future of electronics respond to customer needs with an eye on the future.

Murata has built an integrated system of production from raw materials to finished products, and we are continuously developing and accruing our fundamental technology base, such as materials technology, front-end process technology, product design technology, back-end process technol- ogy and analytical technology. We also aim at creating new markets and innovations by actively collaborating with outside partners and by develop- ing core technologies and products that anticipate the future. Inductor element structure Simulation

Materials technology Back-end process technology

“New electronic devices begin with new electronic components; new electronic Thanks to our own production facilities and strong manufacturing （“monozuku- Where components begin with new materials...” Based on that concept, Murata has Making ri”） expertise, we possess numerous technologies and know-how to mass-pro- created functional ceramic materials with outstanding characteristics. And we duce products stably and e ciently. innovation continuously further advance our technology through the development of new innovation materials with even better characteristics. begins happen

Conventional process New process

Packaging Materials processing Measurement

Front-end process technology Analytical technology Perfected Attending Front-end process technologies enable us to produce designed functions in the E cient use of scientific analytical methods to confirm physical and electrical techniques best possible way, and it plays an important role in the miniaturization, slimming to detail properties, composition and structure of materials, together with Murata’s down, and high functionality of electronic components. advanced failure analysis systems, provide peace of mind to our customers.

Layer structure TEM* image of dielectric ceramics Corresponding cations in the image

Internal electrode Ba

Dielectric ceramic Ti

1µm 2nm

*transmission electron microscope

Dielectric ceramics Surface finishing External Printing electrode Internal electrode Microstructure of chip multilayer ceramic capacitor

06 07 ity RF filt tiv Po wer mana ering Connec gement

Products by application

® ooth Low ESL chip multilayer ceramic Bluei™t Doing what you want, when you want to. WiF capacitors S GP －Murata simplifies things with not-so-simple technologies.－ Capacitors with low equivalent series inductance（ ESL） and superb RF char- acteristics are ideal for power supply Thin notebook computers, tablets, and other carryable devices have decoupling in high-speed electronic devices. Products become essential to people’s lives, from students to working adults. They can even be used for illustrating, gaming, and video editing. Murata’s ability to make electronic components smaller and thinner, plus our sensing technologies and high-density mounting technologies Shock sensors all contribute to improving the performance and functionality of com- by application These are electronic components puters. Our wireless communication modules that enable connectivity with low power consumption, and sensors that improve usability, are that apply piezoelectric ceramics to change acceleration and vibration examples of how Murata supports next-generation computing. into an electrical signal. They are used mainly with HDDs as sensors Global share for preventing the writing of data % when an impact is received from an 95 Technologies with applications external source. far beyond the smartphone. So special we call them “magic wand” technologies. Communications Actuators －Murata is prepared for the coming boom in connectivity.－ Piezoelectric actuators employ piezo- electric ceramics that deform under a voltage, making them ideal for the microscopic positioning of the mag- The smartphone is a gadget that hardly ever leaves one’s hand. It allows us to communi- netic head in hard disk drives. cate not only by voice, but by exchanging email, interacting through social media, playing games, sharing pictures and video, and so on. Data transmission speeds and phone storage ers capacities continue to improve, and as communications services expand, smartphones are ors EMI filt s s bound to become more advanced in terms of performance and functionality. ter Capacialt unit er RF components, with their modular design and compact structure, sensors that improve yst Cer Cr ESD pramic r functionality and operability, and low-loss capacitors and power inductors all help Murata Thermist DC-DC conv ot esona WiF ec contribute to the evolution and growth of the communications sector. i™ t or ion de tor s s vices

Bluet ooth Chip multilayer ceramic capacitors SAW filters ®

Indispensable to electronic circuits, The filters that extract only the these components serve to store required portion of a radio signal are and adjust flows of electricity. They key devices in high frequency cir- are key to the advanced functional- cuits. With its unique miniaturiza- Global share ity of smartphones and other mobile tion technology, Murata helps RF 50% devices, and as they continue to Global share circuit downsizing. become thinner and more compact are increasingly being incorporated 40% into such information devices. Connectivity modules

Enabling various devices to access Inductors（coils） the Internet via radio signals, these Computers modules lead the trend towards When electricity flows through these increasing multifunctionality and inductors, which are also called coils, IoT in smartphones and in-vehicle Shock sensor USB equipment. L a magnetic field develops and that Ener AN current is aected. These inductors Global share Connegyc st NF are used in radio circuits, power supply or s C % A ag circuits, and more. TM 55 ctua tiv e de MetroCirc t ity moduvl ors ices A multilayer bendable resin substrate es Microwave coaxial connectors that combines Murata’s monolithic multilayer production technologies Microwave coaxial connectors transmit with organic material. It can be used radio frequency signal between circuits. for RF and digital signal transmission s They contribute to the development of wires, antennas, and much more, er high-performance communication equip- enabling the development of compo- W filt SA ennas s ments, such as smartphones, tablets nt nents of any shape with exceptional A and wearable devices with smaller and RF characteristics. Sensor thinner size.

RF modules for cellular phones NFC （near field communication） antennas These modules support the multiple fre- quency compatibility of smartphones. Used in equipment that provides They combine a power amplification （PA） electronic payment services—con- function with the conventional function venient systems for quick cashless for changing and filtering frequencies. By payments at the point of sale. The * The “Global share” indicated on each page refers to adding even more functions, they con- data exchange takes place using an the worldwide share of that particular industry, tribute to reducing the thickness and NFC antenna in the consumer’s per- and is not the share of any corresponding applica- improving the transmission speed of sonal device （mobile phone etc.） tion. Furthermore, the noted shares are merely smartphones. Internal configuration（image） and the payment terminal. estimates made by Murata and may dier depend- ing upon the market or the application. 08 09 y it tiv

Products by application Connec

Enhancing your home, Thermistors Elements whose resistance changes Murata is a hidden partner making life better. with temperature fluctuations used in heat sensors, circuit protectors, heat- －Smart, economical and stylish.－ ers, and other systems. They are com- ponents that protect ICs, power supply circuits, batteries, and the like from excessive current and overheat- A TV that remembers your favorite shows. Air conditioning that cools ing by maintaining control and proper operation based on temperature. only those areas where people are and that emits negative ions into the air. Automotive Sensors, ionizer modules, and high conversion eciency power supply modules support the latest systems to make your home and life “smart” Ionizers / active oxygen modules electronics and ecological. （Ozonizers）（ Ionissimo®）

This device ionizes air molecules（ gives them a plus or minus electric charge）. Deodorization, disinfection, anti-mold, antivirus, anti-static, electrification and other eects can be achieved by ionizing the air and adding certain Chip EMI suppression filters characteristics. （Chip EMIFIL®）

Digitization of audio-visual equipment Polymer aluminum and home appliances is advancing and electrolytic capacitors the high-speed clock signal that flows inside those devices may sometimes These are high capacity capacitors Vehicles that are eco-friendly and have a negative influence as electro- that are characterized by having a low magnetic noise. Chip EMI suppression profile and low ESR. They handle the easy to drive rely on advances in electronics. filters prevent such malfunctions stabilization of voltage in circuits caused by noise and other factors, and Global share where serious voltage control is －This gives Murata plenty of opportunity for the future.－ simultaneously contribute to the high % demanded, and contribute to the definition and high-quality sound in 35 advanced features in audio-visual audio-visual equipment. equipment.

Society is moving toward providing all citizens with safe freedom of movement while pro- tecting the environment. The goal ahead is autonomous vehicle technology. Murata is Connectivity modules accelerating the pace of technical innovation to make self-driving cars practical. Murata’s communication modules Murata’s electronic components are used in various automotive systems, including safety are based on proprietary materials equipment, driver assistance, power trains, and telecommunications, evolving together Saf technology and processing technol- with vehicles to deliver high reliability under extreme conditions. ety ogy, and meet customer’s needs for improved functionality and com- pactness of set products with high reliability. Global share 55% Combined gyro sensors Chip multilayer ceramic capacitors and accelerometers Maximizing the heat resistance of Changes in acceleration and in gravity ceramics, these highly reliable capaci- Audio and visual / can be handled as changes in capaci- tors are able to demonstrate their tance in order to detect acceleration excellent performance even under values and the angle of rotation. This harsh usage environments. They are, Global share Home appliances sensor is used in areas in connection thus, naturally utilized in applications 40% with the basic performance of automo- that require high reliability, such as in biles, such as in the Electronic Stability ECUs, drive control units and safety Control （ESC） for the chassis and in the devices, as well as being widely used car’s Anti-lock Brake Systems （ABS）. for infotainment like audio and naviga- tion.

Ultrasonic sensors Power inductors

This sensor can measure distance Electronic control systems are becom- according to the reflex time of the ing standard in more vehicles today. ultrasonic waves that are generated by Power inductors are used to eciently oscillating piezoelectric ceramics. It is produce the various voltages needed used especially for the rear sonar in by circuits. They are also designed to parking assistance systems. control the noise generated by elec- tronic devices.

DC-DC converters Timing devices Ceramic Resonators Crystal units （CERALOCK®） This thin, lightweight DC-DC converter These are component parts that gen- uses a Murata-proprietary control cir- erate the clock signal in combination cuit and sheet transformer. Using this with the IC. As electronic outfitting of one DC-DC converter, voltage can be automobiles progresses, communica- supplied to the circuit unit of each tion between ECUs is needed and block that requires insulation （the timing devices that deliver a highly low-voltage battery input circuit unit, accurate, high quality clock signal are * The “Global share” indicated on each page high-voltage battery input circuit unit, called for. Global share refers to the worldwide share of that and AC commercial voltage input cir- particular industry, and is not the share of any cuit unit）. 75% corresponding application. Furthermore, the noted shares are merely estimates made by Murata and may dier depending upon the market or the application. 10 11 Target markets Smart healthcare

Aging populations in developed countries and expanding medical services in emerging countries are increasing the demand for better and more ecient healthcare. Murata contributes to the development of medical technology by bringing together our own proprietary technologies and contin- Target markets ually providing customers with new value. We meet our customers’ needs with compact, highly reliable products, from non- or less-invasive medical devices to medical IT solutions.

Shaping the future With the increase of digitization and IoT providing connec- tivity across industries, the boundaries of electronics are Cloud expanding. New needs for the smart society are emerging. In response to these expanding needs, Murata will strive to provide new value based on deep know-how in sensing, telecommunication, miniaturization and other technologies. Energy savings In addition to the communications market, we supply In a world where sustainable energy solutions are spreading, unique products and solutions to the automotive, energy smart sensing and communications technologies are needed to and healthcare markets, and contribute to the advance- make energy systems more ecient. Murata contributes to ment of a safer, healthier, and more enjoyable society. Murata contributes to the this energy-saving movement by working to miniaturize components, develop high conversion eciency power supply advancement of a safer, modules, and compact, high output stationary batteries. We healthier, and more also utilize communications and sensing technologies that By sensing and communicating patient information, such as biological enable, for example, management systems that make power e cient society. data, in real time, Murata makes more eective prevention and earlier consumption visible. treatment possible. In addition to in-hospital care, the utilization of in-home and remote monitoring services is also expected to grow.

Home

Expanding boundaries of electronics... Safety on the road Solar power Battery Smart Transmission ...increasing system controller system market opportunities In the very near future, fully-or semi-autonomous, environmen- A smart home energy management system （HEMS） allows the free tally friendly vehicles will safely connect the driver, road, other choice of energy source based on various conditions to optimize energy cars, various networks and travel services. Murata is contribut- consumption overall. ing to this future vision by supplying components and solutions for advanced driver assistance systems, connectivity and electric vehicles. Because of the high reliability of our products, Social Industry Consumer we help provide peace of mind to our customers. infrastructure appliances

Cloud Wireless communication

Blind spot assistance Road condition detection

Advanced Driver Assistance Systems （ADAS） improve road safety. These systems combining various technol- ogies such as so ware, sensing and connectivity help detect driving envi- ronment, communicate with other cars or services, and control the whole driving process.

12 13 Financial highlights Net sales Operating income Sales by product 1,135.5 201.2 （Billion yen） （Billion yen） Murata’s strength is in modules and compact, high-performance components. Trend in sales by product 1,200 300 Capacitors 369.5（32.6%） 1,000 250 Capacitors Communication modules Piezoelectric Components 800 200 Sales increased further for our micro capacitors and The number of components per handset is increasing Net sales 170（15.0%） tiny, high-capacity capacitors used in smartphones as smartphone data rates increase and handsets and other communication devices. In the automotive incorporate multiband capabilities and become more Other Components 600 150 1,132.6 222.3（19.7%） field, the demand for high-reliability capacitors has multifunctional. There is an ongoing move toward （billion yen） Financial highlights been growing with the increasing use of vehicle elec- modularization, in which multiple components are Communication Modules 400 100 tronics. Both areas are particular strengths for integrated for such purposes as reducing the area 325.7（28.7%） 200 50 Murata. occupied by the RF section or to more eciently uti- Power Supplies and Other Modules lize the communication circuit space, and demand for 45.1（4.0%） 0 ’12 ’13 ’14 ’15 ’16 ’12 ’13 ’14 ’15 ’16 0 RF and connectivity modules is expected to continue Trend in sales by product Piezoelectric components rising in the future. Murata is constantly developing Sales of SAW filters increased as smartphones began （Billion yen） to support multiple frequency bands. The demand for 1,200 new products for a world of Power supplies and other modules Net income Total assets ultrasonic sensors in driver assistance systems is 1,100 connectivity. increasing as well. Sales expanded further for power supply use in the 1,000 156.1 1,635 energy sector, data centers, and servers. 900 （Billion yen） （Billion yen） Demand is moving toward electronic components 800 200 1,600 Other components 700 that are smaller and thinner 1,400 Sales of high frequency coils and metal coils for 600 with higher performance and reliability. smartphones increased. In the automotive electronics 500 150 1,200 market, sales also grew in EMI suppression filters and 400 1,000 MEMS sensors used for electronic stability control 300 Today, smartphones account for close to 90% of ESC , both trends that are expected to continue. 100 800 （ ） 200 the mobile phones in use worldwide. With the 100 spread of LTE handsets that support multiple fre- 600 0 ’12 ’13 ’14 ’15 ’16 quency bands and carrier aggregation, higher data 50 400 rates are anticipated in the future, along with even Capacitors Communication Modules 200 higher performance and more multifunctional Sales by application Piezoelectric Components Power Supplies and 0 ’12 ’13 ’14 ’15 ’16 0 ’12 ’13 ’14 ’15 ’16 Other Modules uses. Also anticipated in the field of automotive Sales have been growing with a broad range of products that contribute to convenience, Other Components electronics, as the range of electronic components grows, are improved safety features like Electronic enjoyment and safety, and we continue to expand the markets we work Stability Contro（l ESC） and conveniences like info- in by launching new products. tainment. The demand for electronic components supports the trend toward smaller and thinner dimensions, Communications Automotive electronics Trend in sales by application higher performance, and higher reliability. The widespread use of LTE smartphones and evolu- With the increasing use of electronics in vehicles, tion of carrier aggregation* are driving higher data Audio-Visual In fiscal 2016, with the rapid rise in the value of there has been a concomitant increase in sales of 46.2（4.1%） the Japanese yen against other currencies and a rates. At the same time, demand is increasing for a automotive capacitors that feature high reliability, wide range of component parts such as small and Communications MEMS sensors for electronic stability control（ ESC） decline in sales of communication modules, we micro-size high-capacity, high-end capacitors, SAW 634.1（56.0%） systems, and the ultrasonic sensors used in driver Net sales experienced a decrease in income and profit from filters, and high frequency coils, as well as modular the previous year in a sector that had been looking assistance systems. We also anticipate increased Computers and Peripherals components like RF modules for cellular phones and sales of connectivity modules for infotainment in the 1,132.6 170.1（15.0% ） strong. In fiscal 2017, we will steadily launch new connectivity modules, and functional components future. These trends indicate a strong demand for （billion yen） products, focusing on our core area of chip multi- like MetroCircTM. Sales volume declined in fiscal 2016 Automotive Electronics automotive electronic components that is outpacing 168.7（14.9%） layer ceramic capacitors and piezoelectric compo- due to the rise of the yen and stagnant sales of com- the growth of actual units sold. nents, as well as component products. Also, we munication modules, but in fiscal 2017 we will launch Home and Others 113.5 10.0% will be expanding our lineup of communication and promote unique, new products to capture Audio-visual, home and other （ ） demand and expand sales. modules that integrate component embedding There was growth in sales of connectivity modules Trend in sales by application and multilayer construction technologies. for digital cameras, but a decline in sales of capaci- Computers and peripherals tors and EMI suppression filters for game consoles （Billion yen） Despite somewhat sluggish sales in tablet computers combined with the eects of the strong yen resulted 1,200 Net sales Operating income due to smartphone displays getting larger and the in sluggish sales overall. 1,100 1,000 depressing eect on sales of the strong yen, the demand *Carrier aggregation: a service that enables a network operator to combine for notebook PCs and servers has remained strong. frequency bands to achieve much higher data rates 900 Billion Billion 800 yen yen 700 1,135.5 201.2 600 500 400 300 Net income Total assets 200 100 0 ’12 ’13 ’14 ’15 ’16 Billion Billion yen yen Audio-Visual Automotive Electronics 156.1 1,635 Communications Home and Others New applications Computers and Peripherals For automotive, energy, and healthcare markets and the coming IoT society —Murata will more actively propose new value in all of these new markets.

Murata is currently concentrating on: 1. The automotive market, where the demand for electronic components is expanding rapidly due to the advancing use of electronics in vehicles, the diusion of advanced driver assis- tance systems, and the expansion of V2X communication technology 2. The energy market, where eorts are being made toward achieving ecient energy utilization and bringing energy sav- ings to society devices and things of all kinds will be connected to the Inter- 3. The healthcare market, where growth is expected as a net. In these markets, Murata will utilize its cumulative exper- result of an aging population having greater health concerns tise and strength in electronics（ sensors, the ability to minia- and electronics and information technologies being further turize components, and core wireless communications tech- integrated into medical treatments. nology） to provide new value by bringing innovative change From a longer-term perspective, another growth factor will to these markets. We aim to work harder than ever to bring be the widespread adoption of IoT throughout society, where new and significant enhancements to society.

14 15 Global network

Global network

97 companies in many regions of the world. Wherever you find us, we are Japan 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 cus- tomer-oriented policy at each of our sites, we also strive to be a beloved corporate cit- izen and trusted presence in every region. Furthermore, each site recognizes itself as a member of the same Murata Group, mov- ing together towards a common goal. Around the globe, Murata works as one.

The Americas Europe Asia and Others Greater China Japan Net sales: 102.6 billion yen Net sales: 83.6 billion yen Net sales: 214.8 billion yen Net sales: 647.3 billion yen Net sales: 84.2 billion yen Number of employees: 1,001 Number of employees: 1,510 Number of employees: 17,084 Number of employees: 15,424 Number of employees: 24,966 Subsidiaries: 11 Subsidiaries: 13 Subsidiaries: 17 Subsidiaries: 25 Subsidiaries: 31 Net Sales

Globally, Murata’s Business Murata Elektronik GmbH in Philippine Manufacturing Co. I am in charge of shipping the There has been tremendous growth 1,132.6 Engineering departments strive Germany supports customers of Murata, Inc. is a fast- grow- products we manufacture at in the automotive electronics, energy billion yen to provide innovation and ser- in the DACH region（ Germany, ing Murata aliate in the Wuxi Murata Electronics. As and healthcare markets, and the （ ） vices that directly contribute to Austria & Switzerland ） and region. With the evolving mar- our business has expanded in kinds of components and modules Murata’s overall business growth. Eastern Europe with a major ket Murata is currently facing, China, shipping volumes have that people require is always IT “globalization” is a continu- emphasis on developing busi- much is expected from our reached record levels, but we evolving. Our business is based on ous challenge. Murata’s regional ness in new markets such as company in terms of coping still need to pursue improve- trying to ascertain the needs of IT sections embrace these chal- Automotive, IoT, Healthcare with the demand while accel- ments in quality and service to customers and markets around lenges by o ering steady busi- and Industry 4.0, to mention erating the pace of expansion. achieve further growth. We the world in every field, then ness process improvements just a few examples. Our opera- In dealing with these chal- plan to ship products quickly developing and supplying prod- and innovative IT solutions. tions in Europe are spread lenges, we will rely on the and flawlessly to meet cus- ucts. To achieve sustainable growth Murata America’s mindset is to widely across many R&D, pro- strengths of our human tomers’ demands for QCDS under highly volatile market build trusted global teams. By duction and sales locations, resources, embracing the （quality, cost, delivery turn- conditions requires that we col- Sales by area establishing global trusted with business handled either mindset that made Murata a around and service）, and o er laborate well with related teams, foundations are set for directly or through Distribution. successful organization. Our service that exceeds their departments, customers, and high performance. Together with The global operations of our objective is to maximize our expectations. suppliers. We need to further ■ Japan 84.2（7.4%） Murata America’s sales and customer projects need a strong capability as a manufacturing improve these working relation- business development groups, and robust global Murata Net- company to support the grow- ships if Murata is to create tech- ■ Europe 83.6（7.4%） Business Engineering recog- work to support them as a ing and complex demand of nologies that are consistently a nizes the significance for our team to work with very closely. the global market, and at the step ahead. We aim to achieve ■ The Americas regional “design-in” contribu- We continue to develop busi- same time be a partner with progress for both the company 102.6（9.0%） tions to Murata’s worldwide ness and particular projects other aliates. and society by supplying appealing ■ Greater China business growth and sales with our customers as an inno- products that embody the total 647.3（57.2%） expansion. vative supplier for modules, intellectual capital of Murata. systems and solutions. ■ Asia and others 214.8（19.0%） Wuxi Murata Electronics Co., Ltd. Murata Manufacturing Co., Ltd. Murata Americas Murata Europe Philippine Manufacturing Co. of Murata, Inc. MLCC Production Group Module Business Unit Applications Support Business Development Finance and Accounting Section Production Dept. 2 Communication Module Division * Net sales, number of employees, and number of subsidiaries for Manager Manager Assistant Manager Senior Manager Senior Manager each area are as of March 31, 2017. * Net sales for each area are for electronic components and related products. Karen Smith Joerg Wuestner Allan Javier Yi Cong Hideaki Nakamura

16 17 CSR commitment

CSR report 2017 CSR charter（outline） CSR-related committee organizational chart In line with the “Murata Philosophy”, Murata aims to continue to be a company Board of Directors that is trusted by society by committing to compliance with laws and regula- Compliance Promotion Committee tions, as well as to highly transparent governance, respect for human rights, Statutory Representative Director Within the Murata Philosophy that has guided the company Furthermore, as a company that does business around the health and safety, social contribution and environmental preservation, on the Risk Management since its foundation, it states: “We contribute to the advance- globe, we promote Diversity and Inclusion, and try to create basis of high corporate ethics. To these ends, Murata stipulated this CSR CSR Management Committee Charter as the norms to be observed by all those working at the Company. Committee ment of society by ... creating innovative products and work environments in which people can thrive without partiality Environmental solutions….” This is an expression of our strong desire to bring to gender, nationality, etc. We respect everyone’s background Management Executive Committee about more auent, higher quality living for everyone through and values, carry out personnel exchanges between our We will meet standards of accountability and enhance Committee our products. business sites in Japan and other parts of the world, and aim to Corporate management e ciency and transparency, so as to Global Warming Prevention Committee Murata’s products have played a key role in the miniaturization provide the greatest value to society by sharing the Murata governance remain open to our communities and society, and Vice Presidents continue to be a reliable and respectable company. and increased capabilities of communication devices like Philosophy and our direction with all of our employees Social & Community Functional Sta smartphones, which have become an essential part of the social worldwide. Contributions Committee Human rights We will respect the human rights and dignity of infrastructure. In the automotive sector, Murata already In 2015, the Japanese government introduced the Corporate and labor individuals. contributes to safer, more environmentally friendly driving. In Governance Code, which calls for greater transparency in the energy sector, we help find solutions to limited resources corporate management. With the Ordinary General Meeting of We will improve product and service quality and boost Health employee morale by securing a safe and comfortable and environmental issues; and in the healthcare field, we Shareholders held in June 2016, Murata transitioned to a and safety support health and improvements in people’s quality of life. corporate structure that includes an Audit and Supervisory working environment and managing employees' health. Electronics are vital to providing solutions, and Murata’s Committee. Based on the spirit of the company’s philosophy, We aim to realize a society where people can live a technologies play a big role toward that end. We also anticipate Murata is committed to building trust as we comply with all Environmental healthy life with peace of mind, by reducing negative a societal transformation in the future with the evolution of aspects of ethics in business, and we will continue to fulfill our preservation impact of our corporate activities on society, environ- wearable devices and the coming maturation of the Internet of social responsibility in cooperation with our stakeholders. ment and natural resources. Things/Everything, so we actively pursue technology develop- In promoting CSR management, we have established a CSR We aim to maintain the highest standards of ethics, so ment in these areas. Management Committee that is based on a CSR Charter whose Fair trade as to be a company that fulfills its social responsibility and ethics In addition to making contributions to society through our benchmark is that same Murata Philosophy. Murata will contin- and wins social trust. business, we must also work to resolve important global issues if ue striving to be an open presence in the community and in we are to bring sustainability to society—addressing such issues society as a whole, endeavoring to remain worthy of people’s Management We will establish a system that ensures compliance with as protection of the environment, human rights, and so on. One trust and respect as an enterprise so that our customers know system this CSR Charter, and continuously improve the system. such area that the electronics industry has been involved in from they are in good hands when they do business with Murata. And early on is trying to solve the problem of mineral resources that through the ongoing activities of the CSR Management Commit- come from regions of conflict. Murata has been earnestly tee, we will systematically promote CSR management aimed at Our CSR Charter and CSR-related policy list tackling these issues in cooperation with our supply chain. the sustainable development of society.

■ CSR Charter Chairman of the Board and President ■ Corporate Ethics Policy and Code of Conduct Chairman of the CSR Management Committee ■ Human Rights and Labor Policies ■ Occupational Health and Safety Policy ■ Environmental Policy ■ Purchasing Policies ■ Quality Policy ■ Disclosure Policy ■ 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. Detailed financial information can be found under “Investor Relations”.

Term of this report

Between April 1, 2016 and March 31, 2017 * Some activities taking place in or before March 2016 or in or aer April 2017 are covered in the report as well.

Organizations reported on

Murata Manufacturing Group （Murata Manufacturing Co., Ltd. and 97 subsidiaries inside and outside of Japan）

18 19 Corporate Social Responsibility

CSR Eorts at Okayama Murata Manufacturing Our employees implement CSR e orts in the field with a high degree of awareness.

At Okayama Murata Manufacturing Co., Ltd.（ here- We are also putting a lot of eort into protecting a er, Okayama Murata）, employees in the Admin- the environment. Many production facilities in the istration Department, Production Department are Murata Group employ compressors for com- brought on board to become proactive in carrying pressed air. At Okayama Murata we have taken out CSR activities. Okayama Murata was estab- measures to reduce the supplied pressure of com- lished in April 1992. This year marks its 25th anni- pressed air, thereby leading to energy savings. We versary, making it still one of the newer manufac- are replacing all lighting fixtures with LED bulbs We contribute to turing plants in the Murata Group. CSR activities and working to save energy with pumps, fan, and allow us to contribute to the local community and the like, which help to limit CO2 emissions. Addi- the advancement fulfill our duty to humanity and the environment, tionally, we are working to reduce the amount of of society through and we see the activities as important means of water used in various processes and raise aware- the spirit of the creating a bright future for Okayama Murata. ness of environmental protection within the scope One important eort is creating a safe working of daily duties. Murata Philosophy. environment in which people can feel comfortable. At Okayama Murata we have been deepening our To raise awareness of the need to reduce overtime ties with the local community based on the ideal of work and lead balanced work styles, we have o- “Wanting the presence of Murata to be the pride of cially designated every Wednesday as “Refresh that area.” We greatly value customer satisfaction Day”（ no overtime day） for indirect workers. We and employee satisfaction, to which we have also communicate to our direct workers that we added local satisfaction（ CS, ES and LS）. Our busi- don’t let them work more than 60 hours a week. ness site and its biotope are open to the public, and On top of this, we promote Murata’s groupwide our employees travel to local schools to give les- policy of "Diversity and Inclusion". At Okayama sons to children on the environment and science. Murata, we have given great thought to and have Also, we participate in community events. Through implemented measures that reflect our commit- these endeavors, we are trying to develop relation- ment to making the workplace comfortable espe- ships with local communities. Our goal at Okayama cially for women and people with disabilities. Murata is to raise the trust we have built over the In the area of occupational health and safety, we last 25 years even higher and be even more open found that a large percentage of work-related inju- to society and the local community. Murata Manufacturing Co., Ltd. A message regarding CSR ries were being caused by human error, so we pur- Senior Executive Vice President sued safety management vigorously with the goal Module Business Unit Representative Director of zero accidents under the slogan, “Follow the Norio Nakajima We fulfill our responsibility to society rules every time.” As part of that safety eort, we give risk simulation training to young, inexperi- by embodying the Murata ideals enced workers, aiming to improve overall safety. Keeping our employees healthy is another import- Photo （right to le ）: ant issue, and among the various measures we Okayama Murata What is the most important responsibility toward Automotive electronics have taken is, with regard to mental health, the Manufacturing Co., Ltd. Administration Department society that Murata has? It is a responsibility to Murata develops technologies with the long-term setting up of a counseling room for getting advice Environment Section people. The electronics industry is a key Japanese goal of achieving fully autonomous, self-driving Our employees on personal troubles. Kohei Iwasaki industry that employs large numbers of people. As vehicles to make the roads safer and more secure work together to Okayama Murata a leading enterprise in the field of electronic parts, everywhere. We also aim to contribute to the Manufacturing Co., Ltd. Murata considers it essential both to provide a development of electric vehicles in the future that carry out CSR Administration Department Administration Section safe, pleasant work environment for workers in emit no carbon dioxide. activities. Yuka Kamiya manufacturing and to train personnel on an Masatoshi Nasu ongoing basis. Also, as an enterprise doing Healthcare business globally, we have stakeholders around Murata’s sensing technologies are used in medical the world who urge us to take action that will help equipment to help keep people healthy. In the to solve issues facing society. At Murata, we future, we will be working to promote home consider such calls for action to be an opportunity healthcare enabled by network connectivity. for growth. We therefore engage in various eorts, while carrying out business activities, aimed at Energy protecting the environment, supporting human The zero-emissions home that incorporates high-ef- rights, and ensuring compliance to fulfill our social ficiency energy management systems is already a responsibility. reality. Going forward, we will work to reduce the “We contribute to the advancement of society by cost of such systems, and promote their adoption ... creating innovative products and solutions….” through factory showrooms and other means. This key line from the Murata Philosophy provides the perspective based on which we carry out Murata would like to see a safe, convenient, and business in the four areas of Communications, abundant world of the future. Critical to this eort Automotive Electronics, Healthcare, and Energy. is the Murata Philosophy, whose spirit we share with Murata employees around the world. Imple- Communications menting the management principles embodied in Murata’s products allow manufacturers to make the philosophy will ultimately lead to resolving smartphones and tablets more compact and societal issues, we believe. Also, we plan to utilize consume less power. Our products will also drive the talents of a diverse range of individuals to the building of IoT infrastructure, and eventually engage wholeheartedly in business activities for the IoE infrastructure of the future. the advancement of society as a whole.

20 21 Ise Murata Manufacturing Co., Ltd.

Business and CSR

MetroCircTM

Unique manufacturing is the spirit of our philosophy. MetroCircTM—its concept, Diversity implementation, Murata sends Japanese employees out into the world and production are cutting-edge. to do business, accepts loaned sta from overseas, and utilizes the talents of people of many di erent nation- alities and backgrounds. Also, to achieve integrated MetroCircTM is a new multilayer resin substrate production starting with materials, we acquired that combines Murata’s monolithic, multilayer and Primatec Inc.（ now Ise Murata Manufacturing Co., Ltd.） in November 2016, bringing it in as new member of the design technologies with the high-performance corporate group. resin materials of Ise Murata Manufacturing Co., Ltd. Murata naturally wants to satisfy customers; we also Photo le to right : （ ） value creating a sense of purpose among the members （formerly Primatec Inc.）, a company newly added to Murata Manufacturing Co., Ltd. of the MetroCircTM team. We are proud that a group of the Murata Group. It has superior RF characteristics, MetroCirc Business Division Nobuo Ikemoto women autonomously formed a promotion team that is thin and bendable, and allows great freedom in Tomohiro Furumura provides attentive customer support and is making circuit design. It has great potential for applications Toyama Murata Manufacturing Co., Ltd. customers very happy. Using our philosophy as a guide, we have integrated a in wearable devices and IoT devices, and promises Production Dept. 3 Koji Shiroki di erent corporate culture to create something that had to give rise to new markets and new lifestyles. never existed before. While welcoming these new employees into our fold, we are looking forward to seeing Note: This area normally MetroCircTM contribute to the advancement of society. requires the wearing of a mask, but masks were removed for the photo.

Photo（ le to right）: Murata Manufacturing Co., Ltd. MetroCirc Business Division Masaaki Kanao Kiyokazu Aoki Photo（ le to right）: Masahito Tomimasu Murata Manufacturing Co., Ltd. Philosophy MetroCirc Business Division Ai Miyabayashi Murata’s core business is ceramic materials, but we also Misa Matsubayashi have been pursuing organic materials and the acquisition Rika Matsui and commercialization of applied technologies. These Fumie Matsuda directions have led to the opening up of a new market for a substrate that allows electronic components to be built onto it—MetroCircTM. This development is based on our founder’s desire for the company to do business not by interfering with rival companies but by innovating in the electronics industry.

Photo（ le to right）: Origami-Concept Murata Manufacturing Co., Ltd. MetroCirc Business Division MetroCircTM substrates are manufactured at a smart factory Lijun Zhao that employs world-class equipment, a state-of-the-art Chu Xu security system, and other cutting-edge facilities. Because Toyama Murata Manufacturing Co., Ltd. of their thinness and ability to be formed into any product Production Dept. 3 Haruka Hiramatsu shape, MetroCircTM substrates have become known as “origami” substrates. Murata Manufacturing Co., Ltd. MetroCirc Business Division Yijian Gu Wuxi Murata Electronics Co., Ltd. New Business Production Department Zhujun Yang Murata Manufacturing Co., Ltd. MetroCirc Business Division Byung No Bae Yanmeng Zhang Meng Xie

MetroCircTM

22 23 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

We are systematizing and restructuring Contributing to the mitigation of global warming through energy-saving Securing multiple waste processing routes for E ectively utilizing water resources with occupational health and safety education activities that demonstrate our strength as an organization times of emergency an awareness of water risks Occupational health and safety education consists of training and Murata Electronics（ Thailand）, Ltd.（ “Thailand Murata” below）, Murata contracts with a waste disposal firm to handle industri- Water is a fundamental resource in people’s lives; it is similarly hands-on education aimed at preventing workplace accidents. located in Chiang Mai in Thailand’s north, is Murata’s second al waste generated through production activities, and also essential to plant manufacturing. Water risks are therefore Workers are made to understand the dangers associated with their manufacturing base in the ASEAN region. Thailand is displaying carries out recycling. If an emergency situation were to arise, causing concern worldwide, as water shortages and water jobs and are taught to take actions that ensure their safety. rapid economic growth, and as a result, the nation’s energy such as an earthquake or flood in which processing facilities are pollution become more serious due such factors as climate Currently, the people in charge of health and safety at every Murata consumption is increasing annually. The government’s energy damaged, it is possible that Murata would be unable to get rid change and a rising global population. plant are working together to restructure education in this area. policy has increased energy eciency by almost 40% in one of its waste. In such a case, if the storage area became full, At Toyama Murata Manufacturing, we take great care to We are currently in the process of reworking the company’s decade, and Thailand Murata is also actively working to Murata’s production would have to be halted. use water resources eciently. To improve our water recycling safety education system by first collecting all of the information on conserve energy. An energy-saving framework, comprising To avoid this potential situation, Murata is securing other rate we have overhauled our coolant water system, and taken education being conducted at each plant and determining which such initiatives as the introduction of high-eciency equip- additional processing routes at all of its factories so that steps to optimize the use of water temperature. Such e orts things every employee in the company needs to know, and which ment such as LED lighting and operating improvements to production activities will not be a ected in an emergency. have resulted in a usage reduction of 60,000 tons of water things people handling specific tasks need to know. Then, we will increase the eciency of the company’s air conditioning Waste processing not only takes care of unusable resources, annually, approximately 3% in our factories overall. be reviewing all of that information to produce more e ective system, has been implemented throughout the entire company but it plays an important role in supporting manufacturing. We Toyama Murata Manufacturing’s plant is set in a location

training, improve the educational content, and provide more organization, thereby reducing annual CO2 emissions by 880 are working with waste disposal firms to make sure that within Japan that is particularly blessed with an abundance of

focused training according to specific accident risks. tons. This represents 2.5% of Thailand Murata’s total CO2 function is provided. water. Especially for this reason, we are committed to taking We are working to introduce hands-on safety education that emissions. In the future, Thailand Murata will continue to fulfill thorough measures to protect water resources on into the future. simulates actual workplace risks such pinching, entanglement, and its social responsibilities as a company doing business in electrical shock. Through the experience we hope to raise aware- Thailand, while working to provide a positive inspiration to the ness toward safety among all of our employees. entire Murata Group with bases across the globe.

Photo（ from le） Photo（ from le） Photo（ from le） Photo（ from le） Murata Manufacturing Company, Ltd., Yokaichi Plant, Administration Dept., Administration Sec. Murata Electronics（Thailand）, Ltd. Production engineering Dept. Maintenance engineering Sec. Izumo Murata Manufacturing Co., Ltd., Administration Dept., Environment Sec. Toyama Murata Manufacturing Co., Ltd., Administration Dept., Environment Sec. Takayuki Harada, Kenichi Sasaki Phisit Rataphai Susumu Itohara, Tomohiro Hirano Naoto Kato, Takashi Yamada, Makoto Kubo Murata Manufacturing Company, Ltd., Environmental & Safety Management Dept., Administration Dept. Environmental control Sec. Pongpat Sonpan, Thawatchai Jaimoon Okayama Murata Manufacturing Co., Ltd., Administration Dept., Environment Sec. Environmental & Safety Promotion Sec. Production Dept. Production engineering Sec. Wirat Jankan Takayuki Kubo Masataka Mae

In order to prevent industrial acci- Workplace accident frequency rate At Murata, we are introducing a glob- Trend of total CO2 emissions Murata is working to reduce waste Trends for waste emissions and Murata promotes reduced and e ec- Trends for water use and comparative dents, Murata combines “tangible” and number of accidents al warming prevention plan toward Amount of Amount of emissions. We also aim to strengthen comparative unit ratio of real production tive use of water resources. Each unit ratio of real production No. of accidents resulting in lost workdays reduction reduction e orts like improvements to the reducing the total amount of green- （1,000 t-CO2/year） our industrial waste management Target （%） plant is carrying out its own activities Target Frequency rate for the manufacturing industry 6.4 Standard （%） 10 -1 actual facilities together with such Frequency rate for the electronics industry house gases emitted from our busi- 1,400 system to ensure the regular, responsi- and we are ensuring that that in- -2 0 Standard -3 1,200 -1 “intangible” approaches as education Frequency rate at Murata ness activities. Centered on the ble processing of that waste. -2 -3 formation is shared throughout the

Frequency rate No. of accidents 0 and awareness activities related to 1.15 Global Warming Prevention Special 1,000 Murata Group. -5 1.20 1.06 1.06 20 1,200 －3.8 1.00 800 1,158 -10 health and safety. The frequency rate 0.94 Committee, these measures are be- 1,058 （1,000 t/year） -10 600 （1,000 ㎥/year） for industrial accidents at Murata is ing implemented throughout the 80.0 0.90 15 400 15,000 16 low in comparison with the average Murata Group toward achieving the 200 0.54 60.0 12,000 for the manufacturing industry*, but 0.51 corresponding goals. 0 0.60 0.39 10 ’15 ’16 ’17 ’18 14,800 0.41 0.41 60.4 we remain committed to continually （Target） 40.0 9,000

11,660 7 9 43.0 6 lowering it even further. 5 2 6,000

0.30 5 0.34 Note: Amount of reduction: Volume of CO emissions 20.0 reduced through energy-saving activities, etc. 0.22 3,000 * Number of casualties caused by industrialaccidents 0.11 0.13 0.14 per one million actual working hours 0.00 0 0 ’11-’15 ’16 ’17 ’18 ’12 ’13 ’14 ’15 ’16 0 ’11-’15 ’16 ’17 ’18 Average Average

24 25 Employees Permeate the Murata Philosophy Diversity and Inclusion （D&I） globally to bring together awareness "Diversity and Inclusion" is part of our corporate and action culture, allowing everyone to thrive

Murata’s employees come from all kinds of back- Ms. Furube spoke of her feelings of gratitude grounds. "Diversity" and "Inclusion"（mutual for "Inclusion" being practiced at her workplace, acceptance） are considered so essential to the where she was welcomed back to work on a innovation process that we have set up a commit- reduced schedule a er returning from maternal tee in Japan to promote D&I—the Murata Diver- leave: “At one point I was feeling unsure about sity Inclusion Plaza （M-DIP）. The diversity that being able to work and raise my baby at the same Murata promotes cannot be considered visible, like time, but I was able to overcome my concerns gender or race, but is rather the acceptance of thanks to the warm support of others in the oce Number of countries individuals’ ideas, experiences, abilities, ways of who spoke to me. From that experience I learned thinking and work styles—those invisible qualities how truly important it is to acknowledge and in which a workshop that define a person’s character. At the same time, accept each other.” on the Murata Philosophy we do not shy away from conflict. We encourage a M-DIP members understand the importance of has been held: willingness to hear people out, and by so doing aim diversity and inclusion through experience. Murata to bring about innovation. When people work with wants to have more people within its ranks who We support one another toward a common goal, even if their are sincerely appreciative of one another and work opinions dier, ideas get put forward that might with energy, knowing that diering views enhance individuality, 16 Philosophy sharing at overseas business sites never have occurred on a person’s own. This is the company’s ability to respond quickly to busi- encouraging what leads to enterprise growth and is the reason ness needs, and that innovation is sure to emerge we promote D&I. when the individual talents of each person are it to thrive Murata Finland Improving, Of the 15 people on the M-DIP committee, we brought out. At the end of the discussion, the three in the workplace spoke with three well-informed sta members spoke about M-DIP’s hopes for D&I at Murata. in the spirit of the Murata Philosophy who shared their thoughts with us based on their D&I means bringing together the approaches, unique experiences. experiences, and abilities of diverse individuals, Mr. Yoshioka, who had worked outside of Japan, and allowing the clash of ideas to recombine in Following the acquisition of VTI Technologies Oy, of Murata Philosophy.” As a result, expressed the importance of accepting diering new ways that spark innovation. M-DIP therefore the Finnish MEMS technology company, now numerous improvement proposals were world views and ways of thinking: “When you work sees it as something important to Murata’s growth renamed Murata Electronics Oy, a special program brought back to Finland to further enhance the in another country, there are really so many strategy as the company sets its sights on advance- was started to share the Murata Philosophy with MEMS manufacturing operations, and several unknowns. In such an environment you have no ment for society and culture. all employees. major improvement programs have been imple- choice but to observe others very closely. Since The purpose of the Philosophy Sharing program mented with great success. Photo（ from le to right）: was to introduce the Murata Philosophy to all Murata does business globally, it is essential to Murata Manufacturing Co., Ltd. have the desire to understand the people you are Sales & Marketing Unit employees, and to help them understand how dealing with.” Japan Sales Division they can contribute to customer satisfaction and Ms. Kitao, a female engineer, described a signifi- Kenichi Yoshioka the overall success of Murata. Several workshops cant shi in her thinking: “When I started working, Murata Manufacturing Co., Ltd. were held, with presentations of Murata’s history, I was the only female engineer in the division, and I Module Business Unit values and philosophy, followed by discussions IoT Group and group workshops with the participation of all was quite nervous and unsure of myself. But Fumi Kitao everyone around me gave me their support. I found employees, from management to shop-floor Murata Manufacturing Co., Ltd. workers. Feedback from employees was positive that being able to discuss things freely and openly Production Engineering Unit builds trust and enables each person to flourish. Quality Assurance Group and encouraging, and also very revealing. We We learn to recognize the value of each other’s Yuko Furube realized we have a lot to do. It was recognized Murata Electronics Oy input and can help one another to improve. I now that applying the Murata Philosophy in our daily workers on visit to the really appreciate that way of working.” work and decision-making will truly help us to Kanazawa factory improve. These workshops were complemented by an Case 2） eLearning module, enabling especially new Scientific approach to improve quality employees to further self-study the meaning of A scientific approach, which is one key principle of the Murata Philosophy. the Murata Philosophy, has been fully imple- Since then, we have advanced from understand- mented at Murata Finland to improve quality. With ing to believing, and finally to applying our Philoso- the help of Murata’s extraordinary analysis capa- phy. Also, the workshops have been implemented bilities, and strong quality mindset embedded in with great success. the Philosophy, we succeeded in identifying root causes behind some major quality issues we had Case 1） had in the past, to take corrective actions and Enhancing manufacturing skills achieve a huge improvement in our product qual- In 2016, a group of MEMS manufacturing workers ity. We apply our philosophy across activities from Murata Finland visited the Kanazawa factory. called “Know your process” and “Cross-functional The purpose was to learn how the Murata Philoso- team work,” enabling us to eciently utilize the phy is applied to enhance manufacturing and to best know-how in-house. utilize those learnings to improve our operations in Finland. “We were truly impressed by our observa- Our journey as a trustworthy member of Murata tions,” commented the participants, “It is obvious continues, and we will continue to contribute to that at Murata, manufacturing comes first; it is a the advancement of culture by providing unique real strength, and all employees on site continu- MEMS components in the spirit of the Murata Phi- ously innovate better ways of working, in the spirit losophy.

26 27 Responsibilities and actions in relation to suppliers Society and the community

CSR Procurement A focus on the environment, human rights,

and other CSR issues in collaboration with suppliers Number of business sites Murata aims to build mutual trust with our suppli- ensure that our suppliers themselves proactively in the Murata Group ers and achieve mutual prosperity by promoting pursue responsible procurement. socially responsible procurement. This e ort aligns We confirm how our suppliers are carrying out engaged in woodland well with this section of the Murata philosophy: responsible procurement by having them fill out a preservation: “We contribute to the advancement of society … risk assessment questionnaire based on the Elec- together with all our stakeholders, thankful for the tronic Industry Citizenship Coalition® （EICC®） increase in prosperity.” Code of Conduct. In the future, we are planning to 8 Companies today are getting called upon to take take the results of the questionnaire, perform an socially responsible action from stakeholders in var- audit to confirm the details with each supplier, and Photo（ le to right）: ious spheres. Murata is no exception. We conduct a if any problem is found, to work with the supplier Murata Manufacturing Company, Ltd. Environmental & Safety Management Dept. variety of CSR-related activities, and through our to improve the situation. In addition, Murata has Shigehiro Sakata supply chain urge suppliers to do the same, with the positioned the issue of conflict minerals/con- Environmental & Safety Management Dept. ultimate goal of achieving sustainability in society. flict-free sourcing, which has come under great Environmental & Safety Promotion Sec. In addition to established green procurement scrutiny recently, as part of our CSR initiatives, Kayo Nakata e orts to protect the environment, recently we which we plan to address in collaboration with our have implemented socially responsible procure- suppliers. ment that extends to ensuring that our suppliers We will steadily and earnestly implement these protect human rights （preventing discrimination, initiatives for society’s benefit, and by so doing Murata’s woodland preservation activities etc.） and establish occupational health and safety deliver Murata products to customers together measures. We are also getting called upon to with greater safety and peace of mind. Developing products, growing forests, Murata receives the Forestry Agency How CSR Procurement Works Photo（ from right to le）: and nurturing people Murata Manufacturing Co., Ltd. Minister’s Award for ongoing activities Production Engineering Unit Customers Realizing a Sustainable Society SCM Design & Operation Group Yukihisa Nakano Our head oce has been engaged in Murata Forest approximately 10 years of ongoing activities. We Employees CSR Charter based on Murata Philosophy Erika Hirata woodland preservation activities since fiscal 2007. plan to continue actively pursuing these activities Yusuke Fukui About once a month, employees and their families to uphold the honor of being a recipient of the Shareholders participate as volunteers, actively cooperating award. /Investors • CSR procurement Permeation of with local residents near the forest in Kozaki-ku, agreement CSR through * Murata Forest was the first forest in the woodland preservation • Self-assessment Kameoka, Kyoto prefecture to help thin the forest. activities carried out in Japan as part of the Model Forest Move- Society ment proposed by Canada at the Earth Summit held in 1992 as a • Audit supply chain /Community Last autumn, at the 40th Annual Zenkoku Ikujusai practical movement to build a sustainable global environment. （nationwide tree-raising event） held in Kyoto, Environment Murata Supplier the company was recognized by Kyoto prefecture with the Forestry Agency Minister’s Award for

Class lessons for children by Murata employees Raising the curiosity and aspirations of children in China

Since 2006, Murata has been sending employees dren’s intellectual curiosity in science and technol- to elementary schools, junior high schools and ogy and to show how important the work of an other learning institutions in Japan and other engineer is, and the importance of never giving up, countries to show children what kind of work engi- even aer failing. neers do and how interesting the job is of support- The company also donated books to be of assis- ing monozukuri （the art of manufacturing） at a tance in the children’s school careers. Murata aims Working with company like Murata. to be the kind of company that enables children to suppliers to At Wuxi Murata Electronics in China, e orts were have high hopes and dreams. realize a begun in December 2016 to give lessons to kids at a nearby elementary school. sustainable The children were given a demonstration of society MURATA BOY, a bicycle-riding robot, and MURATA GIRL, a unicycle-riding robot. They were shown the mechanisms that make the robots self-balancing and shown scenes of the robots while still under development. The objective was to stimulate chil-

28 29 CSR activities: Targets and results Murata commits itself to continual improvement in priority theme areas through the implementation of a broad range of measures.

Results for fiscal 2016 environmental targets and social targets; medium-term targets for fiscal 2016 to fiscal 2018, and targets for fiscal 2017

■ Environmental Targets ◯: Achieved △: Nearly achieved ×: Not achieved ■ Social Targets ◯: Achieved △: Nearly achieved ×: Not achieved

Achieve- Achieve- Item Targets for FY2016 Results for FY2016 ment FY2016 to FY2018 medium-term targets Targets for FY2017 Item Targets for FY2016 Results for FY2016 ment FY2016 to FY2018 medium-term targets Targets for FY2017 A calculation rule（ dra） on the amount Confirmation of the status of compli- Redefine the CSR compliance criteria Formulate and do trial computations of contribution to CO2 emission reduc- Establish evaluation methods for the A check sheet has been created to con- ance with designated supplier CSR pro- 1. Environmental Verification of the calculation rule（ dra） for suppliers that reflect the latest CSR for a calculation rule（ dra） on the tion was formulated and trial computa- amount of contribution to CO2 emission firm status of suppliers’ compliance, and Complete confirmation of the status of curement criteria is proceeding, and ef- considerations ○ on the amount of contribution to CO2 issues, and continue promoting eorts ○ amount of contribution to CO2 emis- tions conducted, which will lead to veri- reduction at the usage stage of our the answers were collected with the co- CSR compliance by major suppliers forts to manage and improve the status in our products emission reduction to manage and improve the status of sion reduction fication of how much products help to products operation of targeted suppliers of that compliance are proceeding in co- that compliance reduce emissions operation with suppliers

A plan for CO2 emission reduction to 5. Suppliers The expansion and timely updating of Set and implement FY2016 plan for achieve medium-term targets was cre- Reduce total greenhouse gas emissions 1% or more CO2 emission reduction year the part and material production site 2. Global warming Continue promoting the expansion and The updating and expansion of the pro- Introduce and implement stable pur- medium-term targets ated and executed, achieving a 3.5% ○ in FY2018 to 1.2 million ton CO2 or less over year database that can be referenced in countermeasures timely updating of the part and materi- duction site database is being continu- chasing with lower risk by further ex- CO2 emission reduction year over year times of disaster or accidents is continu- al production site database that can be ously promoted and a system was rolled panding the targets of procurement risk ○ ing to be carried out along with eective referenced in times of disaster or acci- out for querying targeted suppliers in management to matters other than di- Waste emissions per unit of real produc- utilization eorts such as systematizing dents times of disaster or accidents sasters and accidents tion in FY2016 worsened by 6.4%（ com- the confirmation of damages in times of Improve waste emissions per unit of pared to FY2011 to FY2015 average ; Improve average waste emissions per disaster or accidents 3. Saving resources ） Improve waste emissions per unit of real real production in FY2016 by 1% measures were taken, including the re- unit of real production in FY2016 to and recycling × production in FY2017 by 1%（ compared （compared to FY2011 to FY2015 av- covery of valuable materials from waste, FY2018 by 3%（ compared to FY2011 1. Promotion of "Diversity & Inclusion" to FY2011 to FY2015 average） 1. Continue with activities to spread —Waste erage） but with expanding business, production to FY2015 average） • Awareness-raising activities implemented such "Diversity & Inclusion" at Murata volume increased rapidly in products as disseminating messages from President with high waste emissions per unit 1. Start promoting “diversity & inclu- •Hold awareness activities（ dissemi- sion” at Murata •Lectures by outside lecturers held nating messages from President, • Average water usage per unit of real •Establish a committee structure for • Committee（ M-DIP） established in holding in-house lectures, etc.） production in FY2016 improved by considering and promoting aware- July 2016 by soliciting members; • Continue with committee to pro- • Improve average water usage per 3.8% （compared to FY2011 to ness activities（ disseminating mes- started studying the ideal form of mote Diversity &Inclusion and carry unit of real production in FY2016 by FY2015 average） • Improve average water usage per unit • Improve average water usage per unit sages from Directors, etc., holding development of Murata and spread- out activities to spread that ideal 1% （compared to FY2011 to of real production in FY2016 to of real production in FY2017 by 1% in-house lectures, etc.） and themes ing that ideal among divisions • Water risk assessment methods were 2. Be actively involved so that career FY2015 average） FY2018 by 3%（ compared to FY2011 （compared to FY2011 to FY2015 av- like “diversity and inclusion” 4. Saving resources investigated and two global-standard 2. E orts taken to promote career forma- •Introduce measures toward the aware- formation and growth is possible to FY2015 average） erage） and recycling • Investigate water risk assessment methods were selected for use; eorts ○ 2. Be actively involved so that career tion and personal growth, along with ca- ness of career autonomy for each job methods will proceed based on assessment re- •Develop measures to establish assess- • Strengthen rainwater discharge man- formation and growth is possible reer training（ 11 times） and career sem- • Promote a reform in consciousness —Water • Implement eorts toward realizing di- toward autonomous career design •Strengthen rainwater discharge man- sults that are in line with the water ment methods for and reduce water agement toward reducing the risk of •Promote a reform in consciousness inars（ 14 times） for general employees versity in ways of working risks in each country or region risks pollution and ways of working: implement agement toward reducing the risk of toward autonomous career design •Career seminars held（ 15 times） for • Implement eorts toward promoting awareness activities for manage- pollution • Measures started being implemented and ways of working, and imple- managerial employees ○ the participation of men in childcare ment and career training, promote to ascertain the risk of pollution related ment awareness activities for man- early awareness of career autono- • Overseas spouse accompaniment • Aim at the proportion of women in to rainwater discharge at new factories agement and career training my, and continue to conduct career and leave system introduced management trainee positions for new training 3. Be involved toward promoting the 3. Measures promoting the active par- graduates being 10% with technical active participation of women ticipation of women jobs and 40% with clerical jobs, and im- 3. Measures to promote the active par- • Introduce and expand the system for • Target conditions expanded for the mid-ca- plement measures to that end ticipation of women returning to work for those employees reer return of employees who needed to quit • Review the opportunities for taking who experience diculty in continuing a screening examination for promo- in their job due to childcare, etc. • Relaxation of system of working on a re- duced schedule for childcare to encourage tion while on parental leave, etc., ■ Social Targets ◯: Achieved △: Nearly achieved ×: Not achieved 4. Support active roles for senior-level the early return from parental leave and look into reviewing evaluations employees 4. Supporting active roles for senior-level 4. Support active roles for senior-level Achieve- • Hold 13 career management training employees Item Targets for FY2016 Results for FY2016 ment FY2016 to FY2018 medium-term targets Targets for FY2017 employees sessions and conduct career interviews •Career management training held •Hold 9 career management training Continue to achieve “zero” serious prob- Zero serious problems achieved through Continue to achieve “zero” serious prob- sessions and conduct career inter- lems, in compliance with laws and regu- compliance with laws and regulations, lems, in compliance with laws and regula- Managerial level: 5 times General employees: 8 times views lations, the Articles of Incorporation, in- the Articles of Incorporation, internal ○ tions, the Articles of Incorporation, inter- ternal regulations, etc., and by promoting regulations, etc., and by promoting the nal regulations, etc., and by promoting the Realize sustainable growth by improving 1. Construction the mechanism for the development of internal control development of internal control development of internal control 1. Internal the transparency of management and creating a “Management System on control systems Internal control development support and the eectiveness of auditing, in an aim Human Rights and Labor” Conduct ecient audits in response to Conduct ecient audits in response to • Firmly establish a “Management Sys- follow-up audits were conducted and the at increasing Murata’s corporate value • Carry out awareness education for all globalization, and promote the expan- globalization, and promote the expan- •Management System on Human Rights tem on Human Rights and Labor”, and •Firmly establish a Management System development of internal control promoted employees in FY2016 sion of internal control for new bases ○ sion of internal control for new bases and Labor promoted company-wide eectively implement the PDCA cycle on Human Rights and Labor at four bases among the new domestic and in setting goals, extracting and improv- and M&A companies and M&A companies 2. Continue awareness and education and meetings held by Human Rights • Workshops held for all employees on international bases and M&A companies ing problem through risk assessment, to prevent harassment and Labor Committee harassment and worker rights measuring and evaluating performance Hold 4 training sessions during FY2016 • Training on harassment prevention • An email magazine on compliance Permeate compliance awareness • in committees, conducting manage- • Continue human rights education（ by Permeate compliance awareness Permeate compliance awareness for those managers who have not un- conducted ○ awareness was published monthly（ 12 • Disseminate information over the in- ment reviews, etc. organizational level） • Continue to regularly communicate issues/year）. •Continue to regularly communicate in- dergone training on sexual and power • Human rights education conducted in tranet, such as on the latest trends in • Introduce company-wide education • Conduct human rights and worker information on compliance promotion formation on compliance promotion harassment training by level new employees • October was made Compliance Month ○ regard to compliance and various laws （ ） once a year from FY2016 in regard to rights audits of cooperating companies, activities（ monthly） activities（ monthly） • Carry out awareness education for all at Murata and aliated companies, and regulations, and continue to con- •Awareness education on worker rights harassment, human rights, and labor, in such as sta recruitment agencies and •Conduct compliance verification tests • Conduct compliance verification tests employees in the first half of FY2016 and compliance verification tests and duct comprehension tests and surveys, provided order to increase employee sensitivity contractors and surveys and surveys 6. Employees to prevent harassment surveys were implemented. in an aim at raising employee awareness to those issues 3. Continue human rights education: Implement compliance education • October was made Compliance Month Hold once a year as social class education Implement compliance education at Murata and at the workplaces of do- • Plan and continue implementing edu- Implement compliance education mestic aliates, and group discussions cation and enlightenment activities •Conduct investigation into and analysis • Hold group discussions using case ○ were held using dicult-to-assess that aim at broadly raising the general • Hold group discussions using timely of the conventional “work-life balance” methods, etc. case methods, etc. compliance cases, including ethical di- level of knowledge and awareness in support system, and consider a review •Enhance and firmly establish a support lemmas regard to compliance • Enhance and firmly establish a sup- • “Murata Kids: Work Investigation of the system toward eective utiliza- system to help employees strike a bal- port system to help employees strike Corps”, a visitation day for children of tion once problems are identified ance between work and family life 2. Promoting Strengthen the foundation of global a balance between work and family employees, was held. ○ • Aim further at fostering awareness of （“work-life balance”）: Hold 1 visitation compliance compliance life（ “work-life balance”）: Hold 1 visi- •Reduced work schedule introduced for “work-life balance” support among em- day for children of employees • Continue to supervise and guide the tation day for children of employees ployees and at the workplace Strengthen the foundation of global caregivers • Continue to promote awareness of is- Strengthen the foundation of global operation of ongoing system for imple- compliance • Continue to support the wholesome sues and develop eective measures compliance •At Murata and domestic aliates, con- menting the “Basic Policy for Preven- development of children, who will lead trol processes for preventing cartels tion of Cartels and Bribery” in overseas • Continue to rebuild and appropriately •Continue to flexibly rebuild the ongo- the next generation were introduced, eLearning on cartels subsidiaries through cooperation with operate the ongoing system for imple- ing system for implementing the “Ba- and bribery was conducted, and the overseas headquarters menting the “Basic Policy for Preven- sic Policy for Prevention of Cartels 1. Promote permeation of and measures ongoing system for implementing the tion of Cartels and Bribery” in accor- and Bribery” in accordance with the △ • Develop the PDCA cycle for more ef- for sharing the Murata Philosophy “Basic Policy for Prevention of Cartels dance with the situation of each situation of each country and region fective and highly transparent compli- • Workshops held for sharing the Philosophy and Bribery” was rebuilt in accordance ance promotion activities by including a country and region • Promote permeation of and measures • Maintain and implement a PDCA aer M&A with the situation of each country and process to verify and approve the an- •Maintain and implement a PDCA frame- •Ensure that the score on items related for sharing the Murata Philosophy framework related to promoting region •Promote permeation of and measures • Lectures on the Philosophy held for peo- to “sharing the Philosophy” in an nual plan and the results of global com- work related to promoting compliance • Hold Philosophy workshops at every compliance for sharing the “Murata Philosophy” ple joining the company not directly FY2017 employee survey is better pliance education, monitoring, etc., site which is reported by the Secretariat at •Hold workshops on sharing the Philos- from university than that of FY2015 • Incorporate Philosophy education into the Compliance Promotion Committee ophy: 20 times • Seminar to study Philosophy held upon •Continue to hold Philosophy workshops that is held twice a year company anniversary domestic training program by organi- • Continue employing foreign workers: • Continue promoting the hiring of for- zational level Hire 5 new university graduate em- 2. Workshops on sharing the Philosophy eign employees and the acceptance of Continually carry out from the investiga- Continually study the risks that obstruct • Continue employing foreign workers: Company-wide risks continued to be in- ployees held: 30 times foreign employees on loan, and work tion of risks on a global level to the im- Murata’s business continuity and plans ○ Hire 5 new university graduate em- vestigated through to the implementa- toward further diversity in manage- plementation and evaluation of related Ensure that the PDCA for risk manage- for preventive measures and loss mitiga- • Promote increasing the number of 3. Increasing the number of foreign em- ployees tion and evaluation of related measures; ment measures, identify the important risks ment at the corporate level functions ef- tion measures in the event that risks foreign employees on loan: 30 in ployees on loan promoted: 31 in 3. Strengthening the measures to strengthen were identi- •Promote increasing the number of for- that Murata faces, focus on verifying ○ fectively, and permeate the concept of materialize at the corporate level; FY2016 FY2016 • Aim at further strengthening the lan- risk management fied, and measures for the current fiscal eign employees on loan: 50 in FY2017 whether or not those measures are ef- risk management as a part of day-to-day strengthen eorts such as the conduct- • Provide education on globalization 4. Education on globalization provided guage skills of employees（ English, Chi- year and the future were systematically fective, and conduct reviews so that operations ing of drills as part of those countermea- （strengthen ability in English and Chi- strengthening ability in English and nese）, and develop personnel who can • Provide education on globalization implemented （ those measures are strengthened further sures nese）: Oer an English and a Chinese Chinese） play an active role globally （strengthen ability in English and Chi- nese）: Oer an English and a Chinese improvement course • English improvement course held from May • Enhance the content of science and • Science and environmental education improvement course to Nov., one set at each level（ 3 sets total） environmental education for children, for children is being carried out on an • Chinese improvement course held from and expand the opportunities for ongoing basis domestically, and the Science and environmental education May to Nov., one set them to gain an interest in science number of instances is steadily being Realize the philosophy of our Founder, for children that has been carried out for and the environment increased overseas 4. Society and “Wanting the presence of Murata to be a long time and participation in wood- • “Zero” incidence of serious work-re- •Zero incidence of serious work-related community •Continue to participate in forest pres- • Regarding participation in woodland ○ the pride of that area ... for Murata to be land preservation activities and events lated accidents accidents ervation activities and events in the preservation activities and events in a company that is a source of joy” at a in the neighborhood community have neighborhood community, and foster the neighborhood community, activi- been expanded in content, and activities •Introduce a method of patrol that can •Safety patrol introduced for actively en- •“Zero” incidence of serious work-relat- •“Zero” incidence of serious work-relat- global level ○ a corporate culture in which employ- ties have expanded overseas and activ- expanded on a global level identify unsafe behavior gaging workers in conversation to con- ed accidents ed accidents ees can proactively participate in so- ities on a global level have become es- •Promote the introduction of hands-on firm their awareness of unsafe behavior cial and local contribution activities tablished education •Hands-on safety education introduced

30 31 Opinion from a third party Pro file

Taking a close look at Murata sites worldwide CSR at Murata

CSR at Murata emphasizes being socially responsible in the Sites in Japan company’s business activities. It embodies a strong determi- Murata Manufacturing/ Head Oce・Branch・Plant and Division・Sales Oce Domestic subsidiaries nation to maintain stable employment and address social Head Oce Murata Manufacturing Co., Ltd. Fukui Murata Manufacturing Co., Ltd. Wakura Murata issues. This report, however, contains many abstract expla- Branch Tokyo Branch Izumo Murata Manufacturing Co., Ltd. Manufacturing Co., Ltd. nations. Internationally, solutions are needed for specific Plants and Yokohama Technical Center / Yasu Division / Toyama Murata Tome Murata problems, such as the Sustainable Development Goals Division Manufacturing Co., Ltd. Yokaichi Plant / Nagaoka Plant Manufacturing Co., Ltd. （SDGs） adopted by the United Nations. When we see the Komatsu Murata Ogaki Murata Sales Oce Sendai / Mito / Saitama / Tokyo / Tachikawa / Hamamatsu / Manufacturing Co., Ltd. ways in which the socially responsible execution of Murata’s Manufacturing Co., Ltd. Nagoya / Azumino / Kyoto / Kobe / Okayama / Fukuoka Asuwa Murata business activities are connected to specific social issues, Kanazawa Murata Manufacturing Co., Ltd. Manufacturing Co., Ltd. and how those topics are placed at the center of CSR activi- Okayama Murata Anamizu Murata ties, it becomes clear how Murata is working hard to be a Manufacturing Co., Ltd. Manufacturing Co., Ltd. world leader in corporate social responsibility. Kanazu Murata Tokyo Denpa Co., Ltd. “Diversity and inclusion” is another topic of this report. Manufacturing Co., Ltd. TOKO, Inc. Promoting greater diversity is an important thing to do at Sabae Murata Ise Murata Manufacturing Co., Ltd. Manufacturing Co., Ltd. every level of society, and is something that Murata is Murata Shizuki FC Solutions Co., Ltd. Iwami Murata Manufacturing Co., Ltd. actively pursuing; it is an area in which I would like to see Murata Land & Building Co., Ltd. Hakui Murata Manufacturing Co., Ltd. Murata Eiko Co., Ltd. Murata make good progress. A concrete action plan is Graduate School of Business Administration, Himi Murata Manufacturing Co., Ltd. Murata Active Partner Co., Ltd. necessary for proper implementation. Gender, age, and Kobe University Azumi Murata Murata Electronics Co., Ltd. nationality are not the only focuses for diversity. So it is good Professor Manufacturing Co., Ltd. Murata Soware Co., Ltd. to see that Murata aims to implement measures that diver- Katsuhiko Kokubu Komoro Murata Murata BUNSEKI Partner Co., Ltd. sify working styles themselves. This will in turn strengthen Manufacturing Co., Ltd. Others the company’s resilience and make life better for its employ- ees. Yet it is important to establish a number of indicators to provide specific objectives to meet. Sites outside of Japan

Murata can also be commended for the measures it has North & South America Asia taken in its supply chain. It has become clear in the last U.S.A. Murata Electronics North America, Inc. China Murata（China）Investment Co., Ltd. several years that CSR and environmental measures cannot Murata Power Solutions, Inc. Wuxi Murata Electronics Co., Ltd. be managed properly without implementing them through- Peregrine Semiconductor Corp. Shenzhen Murata Technology Co., Ltd. out the entire supply chain. Year by year there has been Canada Murata Power Solutions（Toronto）ULC Murata Electronics Trading（Tianjin）Co., Ltd. increasing pressure from buyers in this regard. Murata’s main Mexico Murata Electronics Trading Mexico, S.A. de C.V. Murata Electronics Trading（Shanghai）Co., Ltd. relationships are with suppliers close to the raw materials, so Brazil Murata World Comercial Ltda. Murata Electronics Trading（Shenzhen）Co., Ltd. it has the ability to do much more for the social good in terms Others SyChip Electronic Technology（Shanghai）Ltd. of careful supply chain coordination than a manufacturer Murata Power Solutions（Shanghai）Co., Ltd. that only works from assembly to the finished product. Europe Foshan Murata Minmetals Materials Co., Ltd. In the world of CSR, there is a growing trend toward Netherlands Murata Electronics Europe B.V. Dongguan Murata Electronics Co., Ltd. producing “integrated reports”. An integrated report covers Germany Murata Elektronik GmbH Hong Kong Murata Company Limited more than financial capital. It includes the value that is U.K. Murata Power Solutions（Milton Keynes）Limited Murata Power Solutions（Hong Kong）Limited produced from other forms of capital—manufactured, Murata Power Solutions（Celab）Limited Taiwan Taiwan Murata Electronics Co., Ltd. intellectual, human, social and relationship, and natural. I France Murata Electronique SAS Korea Korea Murata Electronics Company, Limited believe this report style is a good match with Murata’s CSR Murata Integrated Passive Solutions S.A. Singapore Murata Electronics Singapore（Pte.）Ltd. spirit, and look forward to seeing such reports issued in the Finland Murata Electronics Oy Thailand Murata Electronics（Thailand）, Ltd. future. At such time, an important focus will be the indica- Others Thai Murata Electronics Trading, Ltd. Malaysia Murata Electronics（Malaysia）Sdn. Bhd. tors selected to measure the creation of value to society. In We also have sales oces in the United Kingdom, Italy, Spain, Hungary and Switzerland. financial matters there are Key Performance Indicators Philippines Murata Electronics Philippines Inc. Philippine Manufacturing Co. of Murata, Inc. （KPIs）, so it will be critical to establish non-financial KPIs, India Murata Electronics India Private Limited to manage objectives, and to communicate Murata’s （ ） Vietnam Murata Electronics（Vietnam）Co., Ltd. progress as the company moves forward. Others

32 33 Executives, Stock information and Major shareholders

Executives As of July 1, 2017 Stock information As of March 31, 2017

Board Members Number of shares outstanding at the end of current term 225,263 thousands of shares Chairman of the Board and President Number of shareholders at the end of current term Tsuneo Murata※ 56,576 Number of shares outstanding（ unit: one thousand） Vice Chairman of the Board Yoshitaka Fujita ■ Financial Institutions ■ Foreign Companies ■ Domestic Companies Board Member Toru Inoue※ ■ Own Shares ■ Individual Investors & Others

※ Norio Nakajima Own Shares Individual Investors & Others 12,525（5.6%） 20,422（9.0%） Hiroshi Iwatsubo

Yoshito Takemura Domestic Companies 8,507（3.8%） Satoshi Ishino No. of Shares Outstanding Takashi Shigematsu Foreign Companies Financial Institutions 98,370（43.7%） 225,263 85,439（37.9%） （Outside Director） （unit: one thousand）

Board Member Audit and Supervisory Committee Member Junichi Tanaka Hiroaki Yoshihara （Outside Director） Stock exchangea listing ［Domestic］ Tokyo Stock Exchange First Section Masakazu Toyoda （Outside Director） ［Overseas］ Singapore Exchange Hiroshi Ueno （Outside Director） Major shareholders As of March 31, 2017 * indicates Representative Director Number of shares Name （unit: one thousand） Ownership（ %） JP Morgan Chase Bank 18,541 8.7 Vice Presidents 380055 Japan Trustee Services Bank, Ltd. Senior Executive Vice President Toru Inoue 11,389 5.4 （Trust Account） Norio Nakajima The Master Trust Bank of Japan, Ltd. 7,699 3.6 （Trust Account） Executive Vice President Satoshi Sonoda Nippon Life Insurance Company 7,361 3.5 Hiroshi Iwatsubo State Street Bank and Trust Company 6,977 3.3 Yoshito Takemura The Bank of Kyoto, Ltd. 5,260 2.5 Satoshi Ishino Meiji Yasuda Life Insurance Company 5,240 2.5 Norio Sakai JPMC Oppenheimer JASDEC 4,836 2.3 Senior Vice President Masahiro Ishitani Lending Account Japan Trustee Services Bank, Ltd. Kenichi Mizuno 3,854 1.8 （Trust Account 5） Hideki Maruyama The Shiga Bank, Ltd. 3,551 1.7 Ryuji Miyamoto （Note） Vice President Takehiro Konoike The company holds 12,525 thousand shares of its own stock. As these shares do not confer voting rights, they are excluded from the above table. Yutaka Tada Yoshikazu Namasuya Kiyoshi Iwai Toshikazu Sasaki Etsuo Hayakawa Nagato Omori Ken Tonegawa Shinji Nomura Takaharu Sakai CERALOCK, EMIFIL and Ionissimo are trademarks or registered trademarks of Noriyuki Kubodera Murata Manufacturing Co., Ltd.

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