Image Size
W195 x H530 px
Continuous Growth
with Sustainable
Superior Profits
March, 2018
TSE code : 6754 https://www.anritsu.com
Hirokazu Hashimoto
President and Group CEO
Anritsu Corporation
2 Copyright© ANRITSU
All information contained in this release which pertains to the current plans, estimates, strategies
and beliefs of Anritsu Corporation (hereafter "Anritsu") that is not historical fact shall be considered
forward-looking statements of future business results or other forward-looking projections pertinent
to the business of Anritsu. Implicit in reliance on these and all future projections is the unavoidable
risk, caused by the existence of uncertainties about future events, that any and all suggested
projections may not, come to pass. Forward-looking statements include but are not limited to those
using words such as "believe", "expect", "plans", "strategy", "prospects", "forecast", "estimate",
"project", "anticipate", "may" or "might" and words of similar meaning in connection with a discussion
of future operations or financial performance.
Actual business results are the outcome of a number of unknown variables and may substantially
differ from the figures projected herein.
Factors which may affect the actual business results include but are not limited to the economic
situation in the geographic areas in which Anritsu conducts business, including but not limited to,
Japan, Americas, Asia, and Europe, changes in actual demand for Anritsu products and services,
increases or decreases in the competitive nature of markets in which Anritsu sells products or buys
supplies, changing aptitudes at providing services, and exchange rates.
You also should not place reliance on any obligation of Anritsu to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise. Anritsu
disclaims any such obligation.
Cautionary Statement
Copyright© ANRITSU 3
Agenda
I. Mid-term Business Plan and Business Strategy
1. 2020VISION
2. Outline of our business segments
3. Middle and long-term management basic strategy
4. Cellular Test Solutions
5. Industrial Test Solutions
6. Network Reshaping Test Solutions
7. PQA Business segment
8. Financial strategy
9. Shareholder Return Policy
10. Corporate Governance System
11. To achieve our social mission
II. Financial Results for the 3rd quarter of the Fiscal Year ending March 31, 2018
4 Copyright© ANRITSU
Thorough the policy “ Continuous profitable growth”
Make our best to accomplish 2020VISION
1. 2020VISION
5 Copyright© ANRITSU
Mobile
Network Infrastructure
Electronics
T&M For development, manufacturing, installation and maintenance Food Safety
X-ray inspection systems
Checkweighers
IP network equipment
Others PQA
Opt. devices
(Revenue by business segment)
87.6 Billion Yen consolidated revenue in FY2016
T&M: Test & Measurement PQA : Products Quality Assurance
PQA
22%
Others
10%
T&M 68%
Mobile
45%
Network Infrastructure
35% Electronics
20%
Japan
18%
Americas
27%
EMEA
18%
Asia & Pacific
37%
(Sales of T&M business by region in FY2016)
2. Outline of our business segments
6 Copyright© ANRITSU
R&D Manufacturing Installation/ Maintenance
Wireline
Communication
Wireless
Communication
General Purpose
Core networks
Metro networks
Mobile networks Mobile
Mobile
2-1. Outline of our business segments <T&M>
Network Infrastructure (35%)
Mobile (45%)
Electronics (20%)*
Network Infrastructure Electronics
*Electronics components etc.
7 Copyright© ANRITSU
Market
average annual
growth rate
Growth driver
Target
Sales
growth
rate
Operating
margin
T&M 3-5%
Broadband expansion and innovation
(1) LTE-Advanced, 5G
(2) IoT, Connectivity
(3) Network Reshaping
≧7% ≧20%
PQA 3-5%
Improvement of safety, security and
health
Solutions with X-ray for quality
assurance
≧7% ≧12%
Consolidated - - - ≧18%
ROE - - ≧15%
Capture growth drivers, and realize “continuous profitable growth”
3. Middle and long-term business basic strategy
8 Copyright© ANRITSU
535
705 712 760
734 677 593 610
123
142 144 169 162
189 196 215
0
40
80
120
160
200
240
0
200
400
600
800
1,000
1,200
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
Act. Act. Act. Act. Act. Act. Act. Est.
3- 1. Trends of Results and Mid–term Plan (3-years,GLP)
Op. Inc.
(JPY100M)
Sales
(JPY100M)
Op. Margin
Other
PQA
T&M
Op.
Margin
Cons. 9% 15% 17% 14% 11% 6% 5% 5%
T&M 10% 20% 21% 17% 12% 7% 4% 4%
PQA 5% 4% 6% 7% 5% 6% 7% 7%
3 years Plan GLP2012 GLP2014 GLP2017
779
935 946 1019
955 910
Now
988
876
Op.
Margin
T&M Sales
PQA Sales
GLP20XX:
Mid Plan
9 Copyright© ANRITSU
38% 38% 40% 41% 44% 44% 38%
11% 12% 13% 14% 13% 13% 12%
30% 32% 35% 38% 39% 39%
30%
21% 17% 12% 7% 4% 4% 20%
0%
20%
40%
60%
80%
100%
FY12 FY13 FY14 FY15 FY16 FY17 Operating
Model
Operating profit
SG&A
R&D
COGS
Cost structure improvement measures
• Introduction of high value added solutions (professional services, software)
• Thorough enforcement of development ROI & ROIC management (*1)
• SG&A expenses: Organizational structure and optimal allocation of human resources
in response to changes in customer trends
*1:KPI target index for R&D investments is an R&D ROI(gross profit / R&D investment value) of
4.0times or higher.
3-2. Profit structure improvement targets < T&M >
(Forecast)
10 Copyright© ANRITSU
2012
LTE-Advanced
2008 2017 2020
Mobile Market
Wireline Market
・Investment for development for Gigabit
LTE shifts into high gear
2024
Network Reshaping
IoT, Automotive
5G Development
・ Active demand for measuring used in verification
tests of cellular LPWA
(Cat.M/NB-IoT)
・ Accelerated investment for
development for 5G (NSA-NR)
LTE-Advanced Pro
5G Manufacturing
Business Opportunities
3-3. T&M market trends and business opportunities
Market
size
Manufacturing for
3G/Smartphone
R&D for LTE
・Increasing data center speeds and capacities
・Investment for Small Cells
11 Copyright© ANRITSU
3-4. Anritsu’s business areas are expanding toward 5G and IoT
Network
LTE-A V2X
400G
5G
AI
Edge computing
Smart phones Automotive
transportation Smart homes
Smart cities
Smart
devices
Clouds
SDN/NFV
NB-IoT Connectivity
LOWPAN
Big data
Network
LTE
Smart phones
Data centers
Smart
Devices
Mobile
Networks
Fixed
Networks
Cloud
(From materials of the Ministry of Internal Affairs and Communications)
Source: NIKKEI COMMUNICATIONS April issue 2015
Automotive
transportation
Smart homes
Smart cities Smart
devices
Pro
fita
bil
ity
Number of customers
Smart phones
12 Copyright© ANRITSU
1/10×Latency 100×Peak Data Rate 100×Capacity
SDN/NFV
100G/400G
SDH/WDM
Ethernet
OTN
40G/100G
AOC
Spectrum Analyzer
Signal analyzer
BTS Master
New HH SPA 40G/100G
Analyzer
BERTWave
Series
Signal Quality
Analyzer
eoSight
Big Data Analytics
PCI-E
Data Center
OTDR
Internet
Support for Mobile
Network by Widespread
products ranging from
RF to optical
Support for high-speed
100G/400G
communications
Continued world leader
in bit error rate test
5G New RAT
CPRI NB-IoT LTE
Small Cell
LTE-A C-RAN
R&D and Manufacturing
Solution for IoT Device/
Module
IoT Device / Module
Measurement
Smart
Devices
Features of 5G :
Mobile
Networks
Fixed
Networks Cloud
3-5. Contributing to the establishment of 5G network infrastructure
13 Copyright© ANRITSU
(From materials of the Ministry of
Internal Affairs and Communications)
4. Cellular Test Solutions Supporting evolution of mobile communication system
1998 2008 2018 Evolution
every 10 years
High-definition
video
Video
Internet
Image
Text message Packet
communication
Voice
Max. communication speed increased
about 10 thousands times over the past 30 years
Max.
communication
speed
10k
100k
1M
10M
100M
1G
10G (bps)
1980 1990 2000 2010 2020 (Year)
1G
IoT
VR
2G
4G
LTE-Advanced
LTE-Advanced Pro
LTE
(Long Term Evolution)
4G
3G
5G
14 Copyright© ANRITSU
4-1. Roadmap of LTE service
LTE
DL4 x4MIMO
LAA*
2CA 3CA 4CA 5CA
Gigabit LTE
2014 2017 2018
Service implementation trends of operators
2016 2015 2019
CA (Carrier Aggregation)
CY2009~2013
*LAA---Licensed-Assisted Access (using unlicensed band)
450M
bps 300M
bps 150M
bps
Gigabit LTE
600M
bps
Now
LTE-Advanced LTE-Advanced Pro
15 Copyright© ANRITSU
4-2. 5G and LTE coexist and interwork 5G = LTE Enhancements + Next-Generation Wireless Technologies
LTE C
om
pati
ble
New
RA
T
(h
igh
er
perf
orm
an
ce, w
ide-a
rea)
400MHz
1GHz
3GHz
6GHz
10GHz
20GHz
30GHz
40GHz
frequency
28GHz
Sub- 6GHz
~2020 Year 2016 2015
LTE-Advanced
Rel 12 & 13
LTE Enhancement
Rel 14 & 15
Roadmap of LTE
New RAT:New Radio Access Technology
5G Next-Generation
Technologies
Small Cell
Small Cell
Macro Cell
Data Signal
Control Signal
LTE Network
Control
Signal
Data Signal
5G Network
16 Copyright© ANRITSU
4-3. Roadmap of 5G initial development CY2016 2017 2018 2019 2020 2021
Trial / Service
Pre-Standard R&D Phase
NSA-NR (Non-Standalone New Radio)
Pre5G
Specification
NSA-NR chipset
development starts.
Test Solutions
Korea
Winter Olympic
Tokyo
Olympic
Solutions for initial stage development
Solutions for mass production
Standard-based R&D
Trial Commercial service
Rel.15 Rel.16 Rel.17 Rel.14
SA-NR (Standalone New Radio)
Pre5G
December 2017
First standard specifications completed.
March 2018
Completion of standardization scheduled.
NSA-NR device
development starts.
Design for chipset
commercialization starts.
Main Competitors
Rohde & Schwarz, Keysight
17 Copyright© ANRITSU
②
4-4. 5G Band Allocations in the World Sub 6GHz Millimeter Wave
① 2018 to 2019 2020
and
before
①
②
①
② ② ②
①
①
②
①
② ①
② ②
600/700 MHz 3.1 to 4.2 GHz 4.4 to 4.99 GHz 26/28 GHz 38/42 GHz
1GHz 3GHz 4GHz 5GHz 20GHz 50GHz 30GHz 40GHz
Sub GHz
*Created based on public disclosure information.
18 Copyright© ANRITSU
4-5. Outlook for 5G Service Development
5G NR Millimeter Wave
Drone Communication
Automobile (C-V2X)
Development of
Existing LTE
LTE IoT
5G NR Sub 6GHz & LTE
LTE
Public Safety
Smart Device
Private IoT Network
10Gbit 5G
1Gbit 5G
City
Millimeter waves are used in
cities where small cells can be
arranged in mesh networks.
Suburbs
Local Area
Development of
Existing LTE
Development of
Existing LTE
19 Copyright© ANRITSU
4-6. LTE and LTE-Advanced Test Processes and Anritsu
Solutions
Chipset
Protocol
Verification of
Core Technologies
at Chipset Vendors
Evaluation of
Functions &
Performance at
UE Vendors
Conformance Test
at UE Vendors
& Test Houses
Acceptance Test
at Carriers &
Test Houses
Mass Production
Test at UE
Vendors & EMS
Verification of
chipset and protocol
Function test
RF performance test RF conformance
Calibration and
inspection in
production process
Protocol
conformance
Compliance verification
for request specification
of carriers
20 Copyright© ANRITSU
Platform(Core)
Development
Conformance test Operator
Acceptance test RF Protocol
Uses
Comm. standard
development
Chipset development
Conformance test
Interoperability test
Comm. Carrier
acceptance test
Main
customers
Chipset vendor
UE vendor
Chipset vendor, UE vendor,
Communication Carrier
Com Carrier, Test
house, Vendor,
Main theme
・FDD / TDD-LTE, LTE-Advanced (Carrier aggregation etc.)
・VoLTE (Voice over LTE)
・MIMO (Multi Input Multi Output)
・Chipset unification of 3G/LTE and SRW (Short Range Wireless)
Market
Positioning
Products
Main
Competitors Rohde & Schwarz
Rohde & Schwarz,
Keysight(Agilent, Anite), Spirent
Keep No.1 position
Growing market
Position improve
Keep No.1 position
Growing market
Position improve
Smartphone
Commercial test
Application development
UE operation test
UE vendor
Applications developer
・Improve data throughput
・Battery consumption
etc.
Rohde & Schwarz,
Keysight
Growing market
Position improve
4-7. Mobile R&D business and solutions
21 Copyright© ANRITSU
Anritsu Corporation announces the
coming launch plan of its Radio
Communication Test Station MT8000A
platform for developing chipsets and
terminals for 5th generation (5G)
communications systems.
With built-in support for broadband
signal processing and beamforming
technologies required by ultrafast
broadband 5G communications, the
all-in-one newly designed desktop
with the advanced architectures of the
MT8000A supports RF and protocol
tests for the sub-6 GHz and millimeter
wave bands.
MT8000A Radio Communication Test Solution
Appendix-1. New Tester for Developing 5G Products
NEW
Release date: 2/19/2018
22 Copyright© ANRITSU
外部PCからDUTを直接制御し、
Conventional Signal Analyzer for LTE
プロトコルメッセージング(シグナリング)
Signal analyzer that realizes millimeter-wave
measurement solutions required for R&D and
manufacture of 5G base stations and terminals at
unprecedented low prices Frequency range:9 kHz~32 GHz/44.5 GHz
Analysis bandwidth:255 MHz (standard), 510 MHz(option),
1GHz (option)
MS2850A Signal Analyzer
• Frequency is mainly 6GHz or less
• Analysis bandwidth is 20MHz to several
hundred MHz
Signal Analyzer for 5G • Covers frequency up to 44.5GHz
• Coverage of analysis bandwidth is up to 1GHz
• Low price enables installation for commercial
development and manufacture
Appendix-2. Anritsu’s Solution for 5G base stations and terminals Release date: 5/29/2017
23 Copyright© ANRITSU
EMS
AT&T
Verizon
T-Mobile
Orange
BT
Deutsche Telekom
China Mobile
China Unicom
China Telecom
NTT DoCoMo
KDDI
Softbank + Sprint
SK Telecom
KT
LG Uplus
etc.
Qualcomm, Intel, Samsung, MediaTek,
Hisilicon, Spreadtrum,Broadcom, Marvell, Realtek ,Altair, Sequans etc.
Foxconn, Asus,
BYD, Quanta,
HEG etc.
Ericsson, ZTE, Huawei ,NOKIA ,Samsung ,Fujitsu,NEC etc.
Wireless modules /component
vendors
America:Apple, Amazon, Google, Microsoft+Nokia Asia:Huaweii,OPPO, VIVO, Xiaom, Lenovo,TCL, ZTE,Coolpad ,Samsung , LG,HTC, Micromax Japan:Sony, Fujitsu etc.
SGS, 7 layers,
Cetecom, TMC,
Canvas M,
TechMahindra
etc.
Chipset vendors Operators
Test houses Smartphone & Tablet vendors
Own factories
Application providers
Base stations
For R&D For production
MVNO
4-8. Food chain and players in mobile telecom market
25 Copyright© ANRITSU
Real-world environment
・Company Name:Azimuth Systems, Inc.
・Headquarters:Boston, USA
・Business model: Development and sales of channel emulators, etc.
・Main customers:Operators, chipset vendors, network equipment vendors,
UE vendors, etc. in the Americas, EMEA, Asia, and Japan
Mobile Devices
Protocol Technology Network Infra.
RF Technology
(1)
In the lab (e.g., communication device testing)
Base station
Reflection from
obstacles
Signal
Base station simulator Channel Emulator
Communication device
(device under test)
Cable
Cable
Movement (2)
Fading (Fluctuating signal strength)
4-9. Acquisition of Azimuth Systems, Inc.
Fading (Fluctuating signal strength)
Communication
device
Sep, 2016
26 Copyright© ANRITSU
Automotive solutions
- 3CA/4CA
- 4x4MIMO
- Cellular/WiFi Coexistence
- Telematics Drive emulation
- Evaluation of onboard reception for an
automotive module
- Cellular/WiFi Coexistence
Channel Emulator
FTL
Channel Emulator for 5G 5G R&D solutions
- 5G RF conformance testing
- 5G protocol conformance testing
Grow revenue through collaboration in the strong markets of Anritsu and Azimuth
1. Offer solutions produced by a fusion of our protocol technologies with Azimuth Systems’ RF
technologies (start-up period for measuring instruments to develop 5G) 2. Roll out drive emulation and others for the automotive market
Offer conformance testing for 5G devices
4-10. Solutions corroborated with Anritsu & Azimuth
+
+
+
Solutions for the OTA*
Short
term
Medium
term
Long
term
*OTA : Over The Air
27 Copyright© ANRITSU
Expand Earnings Opportunities by Supporting the Creation of New Markets and
Various Industrial Fields through the Utilization of 5G
5. Industrial Test Solutions
LTE Advanced
LPWA
5G
・Smart meter
・home security
Units
High Speed, Low Latency
・VR,AR
・Advancement of automated driving
・Industrial Equipment
・Remote control operation
Download a movie of
2 hours in 3 seconds
Operate a remote robot
in real time precisely
Connect all the terminals and
sensors around us to the
internet
Multiple concurrent connections
Ultra high speed
Ultra low latency
LTE Advanced Pro, 5G
B
A C
28 Copyright© ANRITSU
Main Competitors Rohde & Schwarz, Keysight
MT8870A
Universal
Wireless Test Set
Current features
*Source :Gartner "Market Share: Final PCs, Ultramobiles and Mobile
Phones, All Countries, 2Q17" 17 August 2017
Graph created by Anritsu based on Gartner research
Smartphone Shipment Market Share in China by Vendor *
5-1. Manufacturing solutions for Smart phone
All statements in this report attributable to Gartner represent Anritsu’s interpretation of data, research opinion or viewpoints published as part of a syndicated subscription service by
Gartner, Inc., and have not been reviewed by Gartner. Each Gartner publication speaks as of its original publication date (and not as of the date of this presentation). The opinions
expressed in Gartner publications are not representations of fact, and are subject to change without notice.
1. Huawei, Vivo, Oppo
The rise of China vendors and intensifying
competition ( )
2. The growth of the manufacturing market in India
Solutions for 2G / 3G / LTE & Connectivity
A
29 Copyright© ANRITSU
5-2. R&D solutions for Smart Devices for IoT
Communication
distance
1m
10m
100m
>km LPWA
NFC Bluetooth
Wi-SUN
Zigbee
Z-Wave
Wi-Fi
3G,LTE,5G
0.01 1 10 100 Mbps
Wireless systems for achieving IoT
Data Transmission rate
SIGFOX
LoRaWAN
Rohde & Schwarz, Keysight
Chipset
SiP (System in Package)
MT8821C
Radio Communication
Analyzer
MD8430A
Signalling Tester
-1
R&D Solutions for Cellular IoT
Cat.M Cat.1 NB-IoT
Cellular IoT
B
Main Competitors
30 Copyright© ANRITSU
Main Competitors Teradyne, National Instruments, Rohde & Schwarz, Keysight
5-3. Manufacturing solutions for Smart Devices for IoT
The Number of IoT Devices [Billions]
*Source :World Economic Forum
MT8870A Universal Wireless Test Set
**SiP (System in Package) SiP1 SiP2
WLAN Bluetooth
-2 B
For WLAN / Bluetooth
・The growth of Connectivity & Module markets for IoT
MT8862C Wireless Connectivity Test Set
31 Copyright© ANRITSU
5-4. Adoption of new technologies in the automotive market and Anritsu’s initiatives
2016 2017 2018 2019 2020 2021 2015
Advancement of automated driving
Level 3
79GHz high resolution automotive radar V2X (802.11p) * vehicle-to-vehicle/road-to-vehicle communications
Telematics/eCall * emergency calling system for vehicles Mobile communication/connectivity
Mobile network
simulator
Wireless communication
RF performance test
V2X communication
quality assessment Millimeter wave signal
transmitter tester
Spread of 4G telematics
Active verification testing of V2X Increasing use of 79GHz radar
Mandatory deployment of eCall
Level 2 Level 1
C
32 Copyright© ANRITSU
Safety , Emergency ,
Comfort , Infotainment , Diagnostic
Car Vendors
Autonomous car
ADAS (Advanced Driver
Assistance System)
Telematics (Telecommunication +
Informatics)
ITS C-ITS (Intelligent Transport
Systems)
Dashboard
Vendors
Transceiver
module (Cellular + V2X +
Connectivity +
Antenna +etc. )
Rader module
Antenna
Satellite receiver
Tuner
Module
Vendors
Cellular
module ,
Connectivity
module ,
V2X module ,
Rader ,
Antenna ,
Connector ,
Cable , etc
Chipset
Vendors
Semi-
conductors
for communi-
cation
5-5. Food chain and players in Automotive market
33 Copyright© ANRITSU
Current LTE Network
Optical
MT8220T
BTS Master
5G Network
Optimization [ Cloud Solution ]
6. Network Reshaping Test Solutions Main Competitors
Viavi
(formerly known as JDSU)
Reshaping the Future of Network Test Solution
Further evolution towards 5G/IoT
Mobile Backhaul
Mobile Fronthaul
RRH: Remote Radio Head
BBU: Base Band Unit
MT1000/1100
Network Master
Wireless
Transport
(CPRI) Integration
MT8220T
BTS Master
RRH
BBU BBU
RRH
Optical Fiber
Macro Cell Small Cell
Wireless
34 Copyright© ANRITSU
Equipment(Router, Switch)
vendors in Data Center
Optical module
vendors
DCI
High speed communication
10G/40GbitE→100G/200/400GbitE Data Center
(Zettabytes
per Year)
Global Data Center Traffic Growth Source: Cisco Global Index 2015-2020
27% CAGR
2015-2020
Expansion of Data Center
Higher- speed
Larger- capacity
Conversion to fiber
optics
Optical device
vendors
Data Center
Keysight
Main Competitors
6-1. Test Solutions for support of Cloud Service expanding Data traffic extending explosively
35 Copyright© ANRITSU
包装機
Automatic
Combination Weighter
Check Weighter
Rejecter
Metal Detector
General examples of food production process
Materials
• Contamination • Variation in the amount of contents • Breaks and chips • Defective packaging (sealing) • Printing error/Print blur
7. PQA business segments (Products Quality Assurance)
Snacks
Meat
Overall quality management and control system
Sausage
Boxing
Packaging
Box packing/Packaging machine Weight inspection
Contaminant inspection
Package inspection
Weighing
and filling X-Ray Inspection System
glass, plastic Rubber packing
stone fragment
bone, shell
Major customers
Kraft Heinz, Unilever, Nippon Ham Group, Glico Group, Nissui Group, etc.
36 Copyright© ANRITSU
Market Major initiatives
North America,
EMEA, AsiaDevelop market with X-ray inspection systems as a key solution
JapanImprove market share through quality assurance solutions with high added value in
response to cutting-edge needs
Main Competitors Mettler-Toledo, Marel, Ishida
7-1. The growing PQA business < PQA >
12.3 14.2 14.4
16.9 16.2
18.9 19.6 21.5
20.0
0
10
20
0
10
20
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 GLP2017
Overseas
revenueDomestic
RevenueOp.
margin
(Forecast) GLP 2012 GLP2014 GLP2017 Target
GLP20XX:
Name of Mid-term
business plan
Revenue
(Bn. Yen)
Op. margin
(%)
37 Copyright© ANRITSU
8. Financial Strategy
30
60
100
40 50 Ratio of net assets
to total assets (%)
0
IFRS
2013. 3
2011. 3
2012. 3
(Ratio of net assets to total assets , D/E ratio)
2014. 3 (59 , 25)
D/E ratio
(%)
2017. 3 (61 , 29)
30
60
2015. 3 (62 , 20)
<Target>
Ratio of net assets to
total assets: ≧60%
D/E ratio : ≦30%
2016. 3 (61 , 29)
38 Copyright© ANRITSU
9. Corporate Governance System
Shareholders’ Meeting
[Legend]
Audit Committee
Board of Directors
Chairman
Outside
executive
Independent
Committee Management
Audit
Department
Internal
executive
Nominating
Committee
Compensation
Committee
For improving competitiveness and continuously enhancing corporate value
39 Copyright© ANRITSU
Dividend Policy
10. Shareholder Return Policy
1. Take the basic approach of raising dividends on equity
(DOE) in accordance with the increase in consolidated
profits for the fiscal year
Distribute profits in accordance with its consolidated
performance(Net profit) and by taking into account
the total return
2. Aim at a consolidated dividend payout ratio of 30
percent or more
40 Copyright© ANRITSU
Dividend per share Profit Payout ratio
FY2017 (Forecast) 15 yen 3.0 B yen 69%
FY2016 15 yen 2.7 B yen 76%
Payout
ratio (%)
Total
return
ratio (%)
Total return ratio of FY2012~FY2014 : 45.4% (including 5.0 billion yen of purchase of treasury stock)
(Forecast)
45.4%
10-1. Dividend forecast
Annual Dividend
41 Copyright© ANRITSU
Social axis SDGs
Business axis
(Creating Shared Value Management)
Anritsu way envision : ensure
11. To achieve our
social mission
42 Copyright© ANRITSU
Contributing to Build a Safe,
Secure, and Comfortable Society
Maintaining Harmony
with the Global Socio-
Economy
Promoting Global
Environmental
Protection
Promoting
Communication
11-1. The Mutual Relationship Between CSR Goals and SDGs
Promote innovation and the creation
of industry that helps develop safe
and secure infrastructure and build a sustainable society
Practice management
for “Continuous
Growth with
Sustainable Superior
Profits” and promote
decent work that helps
everyone succeed
Practice corporate
activities for
sustainable
consumption and
production that
contribute to global
environmental protection
Promote strong
partnerships with all
stakeholders and
practice CSV
Management that
can contribute to the
society through the
business
SDGs
Copyright© ANRITSU 43
II. Financial Results for the 3rd quarter of
the Fiscal Year ending March 31, 2018
44 Copyright© ANRITSU
Unit: Billion Yen
3Q FY2016
(Apr. to Dec.)
3Q FY2017
(Apr. to Dec.)YoY YoY (%)
Order Intake 63.6 64.2 0.6 1%
Revenue 62.3 62.3 0.0 -0%
Operating profit (loss) 1.7 2.7 1.0 60%
Profit (loss) before tax 1.2 2.6 1.4 117%
Profit (loss) 0.7 1.5 0.8 107%
Comprehensive income 0.9 3.0 2.1 252%
Note : Numbers are rounded off to the first decimal place in each column.
International Financial
Reporting Standards (IFRS)
Sustained trend toward profit increase
Ⅱ-1. Consolidated performance - Financial results -
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Unit: Billion Yen
3Q FY2016
(Apr. to Dec.)
3Q FY2017
(Apr. to Dec.)YoY YoY (%)
Revenue 42.6 40.1 (2.5) -6%
Op. profit (loss) 0.7 0.7 0.0 -8%Adjusted operating profit (loss) 1.0 1.0 0.0 -6%
Revenue 13.9 16.1 2.2 16%
Op. profit (loss) 0.6 1.3 0.7 112%
Revenue 5.8 6.0 0.2 5%
Op. profit (loss) 0.3 0.6 0.3 121%
Revenue 62.3 62.3 0.0 -0%
Op. profit (loss) 1.7 2.7 1.0 60%Adjusted operating profit (loss) 2.0 3.0 1.0 52%
T&M
Others
Total
PQA
Note : Numbers are rounded off to the first decimal place in each column.
International Financial
Reporting Standards (IFRS)
T&M: Test & Measurement PQA : Products Quality Assurance
Ⅱ-2. Consolidated performance - Results by business segment -
*Adjusted operating profit for T&M is the amount after deducting 0.3 billion yen in restructuring expenses in the U.S.
Operating profit in T&M recovered to the previous fiscal year’s level
Revenue and profit continued to increase in PQA
*
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Note : Numbers are rounded off to the first decimal place in each column.
■Others
■ PQA
■T & M
Bn. Yen
Revenue Op. profit(loss)
Bn. Yen
3Q(Oct.-Dec.) Operating margin:Consolidated10%, T&M9%, PQA8%
Ⅱ-3. Consolidated performance - Revenue and Op. profit by quarters -
FY2016 FY2017 FY2016 FY2017
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FY2017Q3 (April to December, 2017) Segment
NW
Asia
Americas
Capital investment in optical digital related business was strong
PQA:
T&M: Test & Measurement NW: Network Infrastructure PQA : Products Quality Assurance
T&M:
Mobile
LTE-
Advanced
5G, IoT,
Connectivity Development projects aimed at commercialization
of 5G materialized.
Restrained investment continued due to slower growth in the
smartphone manufacturing market overall.
Ⅱ-4. Overview of operations by business segment
Restrained investment in the smartphone-related market
further continued
Investment shifted to LTE-Advanced Pro.
Base station-related investment by North American operators shrank
Motivation for investment by food manufacturers
remained strong both in Japan and overseas
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■ T & M
■ PQA
■ Others
Note : Numbers are rounded off to the first decimal place in each column.
Bn. Yen
T&M : Maintained level of first half
PQA : Year-on-year increase for sixth consecutive quarter
Ⅱ-5. Transition of Orders
FY2015 FY2016 FY2017
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■Asia &
Others
■EMEA
■Americas
■Japan
Note : Numbers are rounded off to the first decimal place in each column.
Bn. Yen
Overseas revenue increased year on year due to revenue growth in PQA.
Ⅱ-6. Transition of Revenue by region
FY2015 FY2016 FY2017
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Unit : Billion Yen Details
Note : Numbers are rounded off to the first decimal place in each column.
Cash Flow ( FY2017 Q3) Operating CF : 4.2 Bn. Yen
Investing CF : (2.2) Bn. Yen
Financial CF : (8.1) Bn. Yen
Free Cash Flow Op. CF + Inv. CF : 2.0 Bn. Yen
Cash at the end of period 34.2 Bn. Yen
Interest-bearing debt. 16.0 Bn. Yen
Inv. CF (2.2) Fin. CF (8.1) Op. CF 4.2
Operating cash flow margin
ratio was 6.7%
* Other main items: Advances received, etc.
Ⅱ-7. Cash Flow
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Unit: Billion Yen
FY2016
Actual Forecast YoY YoY(%)
87.6 91.0 3.4 4%4.2 4.4 0.2 4%3.6 4.2 0.6 16%2.7 3.0 0.3 10%
Revenue 59.3 61.0 1.7 3%Op. profit (loss) 2.1 2.2 0.1 3%Revenue 19.6 21.5 1.9 10%Op. profit (loss) 1.3 1.5 0.2 15%Revenue 8.7 8.5 (0.2) -2%Op. profit (loss) 0.8 0.7 (0.1) -13% Others
Profit (loss)
T&M
PQA
RevenueOperating profit (loss)Profit (loss) before tax
FY2017
Reference : Exchange rate : FY2016 (Actual) 1USD=108 yen, 1EURO=119 yen
FY2017 (Initially Forecast) 1USD=110 yen, 1EURO=120 yen
FY2017 Q4(Forecast) 1USD=110 yen, 1EURO=130 yen
International Financial
Reporting Standards (IFRS)
No change since April disclosures
Ⅱ-8. Forecast for full year of FY2017
Note : Numbers are rounded off to the first decimal
place in each column.