Murata Manufacturing : Earnings call transcript for Third Quarter of FY2025 (Presentation/Q&A session)

Murata Manufacturing Co., Ltd.

Q3 Earnings Release Conference for the Fiscal Year Ending March 2026 February 2, 2026

Event Summary [Company Name] Murata Manufacturing Co., Ltd. [Company ID] 6981-QCODE [Event Language] JPN [Event Type] Earnings Announcement [Event Name] Q3 Earnings Release Conference for the Fiscal Year Ending March 2026 [Fiscal Period] FY2026 Q3 [Date] February 2, 2026 [Time] 15:30 - 16:35

(Total: 65 minutes, Presentation: 26 minutes, Q&A: 39 minutes)

[Venue] Webcast [Number of Speakers] 3

Norio Nakajima President, Representative Director Masanori Minamide Executive Deputy President, Representative

Director

Nagato Omori Executive Vice President, Ceramic Capacitor Business Unit

[Analyst Names]* Daiki Takayama Goldman Sachs

Shoji Sato Morgan Stanley MUFG Securities

Fumihide Goto Mizuho Securities

Shingo Hirata UBS Securities

Manabu Akizuki Nomura Securities

Presentation Moderator: We will now commence the Murata Manufacturing Co., Ltd. earnings release conference for Q3 of FY2025.

I would like to introduce today's speakers. Norio Nakajima, President, Representative Director.

Nakajima: Thank you. Moderator: Masanori Minamide, Executive Deputy President, Representative Director. Minamide: Thank you. Moderator: Nagato Omori, Executive Vice President, Ceramic Capacitor Business Unit. Omori: Thank you. Moderator: Today, President Nakajima will first present the highlights and topics of the financial results, and then Mr. Minamide will give an overview of the financial results and the business performance of the Company. As soon as the explanation is completed, there will be time for questions and answers. The material is available on our website in the investor relations section under IR library. The presentation material can also be downloaded from the timely disclosure information viewing service.

Now, President Nakajima, please proceed.

Nakajima: Thank you very much for taking time out of your busy schedule to attend our earnings presentation today. I would like to start off by explaining some of the highlights of Q3.

As a result of Q3, sales revenue was JPY467.5 billion. Sales of capacitors for servers were strong, resulting in a 4.3% increase in sales over the same period last year.

Meanwhile, operating profit was JPY37.9 billion. One-time expenses of approximately JPY50 billion, including JPY43.8 billion impairment of goodwill of the business related to SAW filter products, were recorded. I will explain this later on. This halved operating profit. Excluding these one-time expenses, operating profit would be JPY87.7 billion.

We have also revised our full-year forecasts. Revenue forecast is JPY1.8 trillion. The operating profit forecast was revised downward by JPY10 billion from the October forecast to JPY270 billion due to the significant impact of impairment losses.

I would like to explain the goodwill impairment loss, as its impact on this fiscal year's financial results is very significant.

Based on the calculation of cash flows for the entire SAW filter business, we performed an impairment test for goodwill incurred at the time of the Resonant acquisition. As a result, the entire amount of goodwill at the time of acquisition, JPY43.8 billion, was impaired. On the other hand, based on our assessment, the fixed asset's recoverable amount exceeds its carrying value.