Continuous Growth with Sustainable Superior Profits

Transcription

1 Continuous Growth with Sustainable Superior Profits Image Size W195 x H530 px Hirokazu Hashimoto President and Group CEO Anritsu Corporation May, 2017 TSE code :

2 Cautionary Statement 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. 2 Copyright ANRITSU

3 Agenda I. Mid-term Business Plan and Business Strategy VISION 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 II. Financial Results for Fiscal Year ended March 31, Copyright ANRITSU

4 VISION 4 Copyright ANRITSU

5 2. Outline of our business segments T&M For development, manufacturing, installation and maintenance Mobile Network Infrastructure Electronics PQA Food Safety X-ray inspection systems Checkweighers Others IP network equipment Opt. devices (Revenue by business segment) 87.6 Billion Yen consolidated revenue in FY2016 Mobile 45% T&M 68% Network Infrastructure 35% Electronics 20% PQA 22% Others 10% (Sales of T&M business by region in FY2016) Japan 18% Asia & Pacific 37% Americas 27% EMEA 18% T&M: Test & Measurement PQA : Products Quality Assurance 5 Copyright ANRITSU

6 2-1. Outline of our business segments <T&M> Core networks Metro networks Mobile Network Infrastructure Mobile networks Mobile Electronics Wireline Communication Wireless Communication General Purpose R&D Manufacturing Network Infrastructure (35%) Mobile (45%) Electronics (20%)* Installation/ Maintenance *Electronics components etc. 6 Copyright ANRITSU

7 3. Middle and long-term business basic strategy Capture growth drivers, and realize continuous profitable growth Market average annual growth rate T&M 3-5% Growth driver Broadband expansion and innovation (1) LTE-Advanced, 5G (2) IoT, Connectivity (3) Network Reshaping Sales growth rate Target Operating margin 7% 20% PQA 3-5% Improvement of safety, security and health Solutions with X-ray for quality assurance 7% 12% Consolidated % ROE % 7 Copyright ANRITSU

8 3-1. Trends of Results and Agendas for GLP2020 Revenue (Bn yen) Op. Margin Consoli. T&M Actual FY % 21 % GLP Actual FY % 17 % FY % 12 % FY % 7 % GLP2017 Management Reform Actual Actual Actual FY % 4 % Forecast FY % 4 % PQA 6 % 7 % 5 % 6 % 7 % 7 % GLP2020 Continuous profitable 19.6 growth FY2018 FY2019 FY Op. profit (Bn yen) Revenue Other PQA Op. profit (Consolidated) T&M (Note) Exchange rate for FY2017 (Forecast): 1USD = 110 yen 1EURO= 120 yen 8 8 Copyright ANRITSU

9 3-2. T&M market trends and business opportunities Market size Mobile Market Business Opportunities IoT, Automotive Active demand for measuring used in the verification tests of Cat. M/NB-IoT 5G Development Manufacturing for 3G/Smartphone R&D for LTE Wireline Market LTE-Advanced Investment for initial development for starting 5G services Accelerated 5G standardization (NSA-NR) 5G Manufacturing Investment for development to achieve 1Gbps continued Network Reshaping Increasing data center speeds and capacities Investment for Small Cells Now Copyright ANRITSU

10 3-3. Social Innovation through 5G/IoT Nine major applications and industries expected to utilize 5G Concept by the Ministry of Internal Affairs and Communications (i) Sports (ii) Entertainment (iii) Offices (fitness, etc.) (video games, tourism, etc.) (iv) Medical (v) Smart houses/life (vi) Retail (health care and nursing care) (daily necessities, communication, etc.) (vii) Primary Industry (viii) Smart cities/smart areas (ix) Traffic (finance and payments) (Agriculture, forestry, and fishing) (construction management, maintenance, etc.) (transport, distribution, etc.) Expanding mobile broadband supports various applications Ultra high speed Ultra low latency Multiple concurrent connections 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 (From materials of the Ministry of Internal Affairs and Communications) 10 Copyright ANRITSU

11 3-4. Anritsu s business areas are expanding toward 5G and IoT Previous main business domains Current & Future business domains Cloud Data centers Clouds Big data AI Network Fixed Networks Network SDN/NFV 400G Edge computing LTE Mobile Networks LTE-A V2X 5G NB-IoT Connectivity LOWPAN Smart phones Smart Devices Smart phones Automotive transportation Smart homes Smart cities Smart devices 11 Copyright ANRITSU

12 3-5. Contributing to the establishment of 5G network infrastructure Features of 5G : 1/10 Latency 100 Peak Data Rate 100 Capacity Smart Devices Mobile Networks Fixed Networks Cloud 5G New RAT 100G/400G SDH/WDM Data Center 40G/100G C-RAN CPRI LTE-A LTE NB-IoT Small Cell OTN Ethernet SDN/NFV Internet AOC PCI-E R&D and Manufacturing Solution for IoT Device/ Module 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 IoT Device / Module Measurement Spectrum Analyzer Signal analyzer New HH SPA 40G/100G Analyzer BERTWave Series eosight Big Data Analytics BTS Master OTDR Signal Quality Analyzer 12 Copyright ANRITSU

13 4. Cellular Test Solutions Supporting evolution of mobile communication system (bps) 10G 1G High-definition video Video 4G 5G IoT VR 100M Max. communication speed 10M Image Internet 3G 1M 100k 10k Packet communication Voice 1G Text message 2G Max. communication speed increased about 10 thousands times over the past 30 years (From materials of the Ministry of Internal Affairs and Communications) (Year) Evolution every 10 years 13 Copyright ANRITSU

14 LTE Compatible New RAT (higher performance, wide-area) G and LTE coexist and interwork 5G = LTE Enhancements + Next-Generation Wireless Technologies 5G Network 5G Next-Generation Technologies frequency 40GHz Data Signal Small Cell 30GHz Small Cell 28GHz 20GHz Control Signal 10GHz LTE Network Data Signal Sub- 6GHz 6GHz Macro Cell Control Signal 3GHz 1GHz Roadmap of LTE ~2020 Year 400MHz LTE-Advanced Rel 12 & 13 LTE Enhancement Rel 14 & 15 New RAT:New Radio Access Technology 14 Copyright ANRITSU

15 4-2. Roadmap of 5G initial development CY Rel.14 Rel.15 Rel.16 Rel.17 NSA-NR (Non-Standalone New Radio) 5G SA-NR (Standalone New Radio) Specification R&D Phase Pre-Standard Standard-based R&D Trial / Service Trial Commercial service Test Solutions Main Competitors Rohde & Schwarz, Keysight Start development of chipsets and devices Korea Winter Olympic Tokyo Olympic Solutions for mass production Solutions for initial stage development 15 Copyright ANRITSU

16 4-3. With accelerated 5G standardization, commercialization in 2019 is now in sight! Complete formulation of specifications for NSA-NR by March Normally commercialize in years from determination of specifications. Demand for measuring instruments will start from the end of CY2017. Microwave Millimeter wave 6 GHz or less 3GPP Pre5G Sub-6GHz 22 companies 47 companies There are various technical challenges in the practical application of microwave and millimeter wave. Focus on moves in 5G development in the sub-6 GHz spectrum bands (using frequency of 6 GHz or less). 16 Copyright ANRITSU

17 4-4. Roadmap of LTE-Advanced < LTE-Advanced> Chipset User Equipment Operator Expected demand for measuring instruments for R&D Now Data speeds on Commercial mobile terminals Carrier Aggregation Rel.13 ~300 Mbps Rel.14 Rel.15 ~450 Mbps ~600 Mbps ~1 Gbps DL3CA *China Mobile Shift in CY2018 from CY2017 DL4CA DL5CA MIMO (multiple-input and multiple-output) DL4 x 2 DL4 x 4 DL8 x 4 Frequency *LTE-U/ LAA 3~4 GHz 5 GHz (Unlicensed band)** 17 Copyright ANRITSU

18 4-5. Mobile R&D business and solutions < LTE-Advanced > Platform(Core) Development Conformance test RF Protocol Operator Acceptance test Smartphone Commercial test Uses Comm. standard development Chipset development Conformance test Interoperability test Comm. Carrier acceptance test Application development UE operation test Main customers Chipset vendor UE vendor Chipset vendor, UE vendor, Communication Carrier Com Carrier, Test house, Vendor, UE vendor Applications developer 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) Improve data throughput Battery consumption etc. Market Positioning Keep No.1 position Keep No.1 position Growing market Position improve Growing market Position improve Growing market Position improve Products Main Competitors Rohde & Schwarz Rohde & Schwarz, Keysight(Agilent, Anite), Spirent Rohde & Schwarz, Keysight 18 Copyright ANRITSU

19 4-6. Food chain and players in mobile telecom market < LTE-Advanced > Operators AT&T Verizon T-Mobile Orange China Mobile China Unicom China Telecom NTT DoCoMo KDDI Softbank + Sprint SK Telecom etc. MVNO For R&D Qualcomm, Intel, MediaTek, Leadcore, Hisilicon, Spreadtrum, Broadcom, Marvell, NVIDIA, etc. Test houses SGS, 7 layers, Cetecom, TMC, Canvas M, etc. Chipset vendors Application providers Base stations Smartphone & Tablet vendors Apple, Amazon, Google, Microsoft+Nokia, Samsung, Xiaomi, Huawei, OPPO,VIVO, HTC, LG, ZTE, Lenovo, Coolpad, Micromax, Sony, Fujitsu, etc. Ericsson, Alcatel-Lucent, Huawei, etc. For production Wireless modules /component vendors EMS Foxconn, Asus, BYD, Quanta, HEG etc. Own factories 19 Copyright ANRITSU

20 Blank slide 20 Copyright ANRITSU

21 4-7. Acquisition of Azimuth Systems, Inc. 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 Sep, 2016 Network Infra. RF Technology Real-world environment Base station Signal (1) Reflection from obstacles Fading (Fluctuating signal strength) Communication device (2) Movement In the lab (e.g., communication device testing) Base station simulator Channel Emulator Cable Fading (Fluctuating signal strength) Communication device (device under test) Cable 21 Copyright ANRITSU

22 4-8. Solutions corroborated with Anritsu & Azimuth Channel Emulator FTL Channel Emulator for 5G Solutions for the OTA* - 3CA/4CA - 4x4MIMO - Cellular/WiFi Coexistence Automotive solutions - Telematics Drive emulation - Evaluation of onboard reception for an automotive module - Cellular/WiFi Coexistence 5G R&D solutions *OTA : Over The Air - 5G RF conformance testing - 5G protocol conformance testing Short term Medium term Long term 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 22 Copyright ANRITSU

23 5. Industrial Test Solutions - Expand Earnings Opportunities by Supporting the Creation of New Markets and Various Industrial Fields through the Utilization of 5G Profitability: High Utilization of 5G/IoT A B Smart Devices Market Smartphones /Tablet devices Profitability: Low Number of connections: Small Main business areas up to 4G Automotive field C Industrial Equipment field Home security field Smart meter field Other IoT fields Business areas to be newly introduced with 5G Number of connections: Large Source: NIKKEI COMMUNICATIONS April issue 2015 (From materials of the Ministry of Internal Affairs and Communications) 23 Copyright ANRITSU

24 5-1. Manufacturing solutions for Smart phone A Current features Smartphone Shipment Market Share in China by Vendor * 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 MT8870A Universal Wireless Test Set *Source :Gartner "Market Share: Final PCs, Ultramobiles and Mobile Phones, All Countries, 4Q16" 12May 2017 Graph created by Anritsu based on Gartner research Main Competitors Rohde & Schwarz, Keysight 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. 24 Copyright ANRITSU

25 5-2. R&D solutions for Smart Devices for IoT B -1 Communication distance Wireless systems for achieving IoT >km LPWA Cellular IoT 3G,LTE,5G NB-IoT Cat.M Cat.1 100m 10m 1m SIGFOX LoRaWAN NFC Wi-SUN Zigbee Z-Wave Bluetooth Wi-Fi Mbps Data Transmission rate R&D Solutions for Cellular IoT MT8821C Radio Communication Analyzer Chipset SiP (System in Package) MD8430A Signalling Tester Main Competitors Rohde & Schwarz, Keysight 25 Copyright ANRITSU

26 5-3. Manufacturing solutions for Smart Devices for IoT B -2 [Billions] The Number of IoT Devices The growth of Connectivity & Module markets for IoT For WLAN / Bluetooth MT8862C Wireless Connectivity Test Set MT8870A Universal Wireless Test Set WLAN Bluetooth Main Competitors *Source :World Economic Forum **SiP (System in Package) SiP1 SiP2 Teradyne, National Instruments, Rohde & Schwarz, Keysight 26 Copyright ANRITSU

27 5-4. Adoption of new technologies in the automotive market and Anritsu s initiatives C 2015 Advancement of automated driving Level Level 2 Level 3 Spread of 4G telematics Mandatory deployment of ecall Increasing use of 79GHz radar Active verification testing of V2X Telematics/eCall * emergency calling system for vehicles Mobile communication/connectivity Mobile network simulator Wireless communication RF performance test Millimeter wave signal transmitter tester 79GHz high resolution automotive radar V2X communication quality assessment V2X (802.11p) * vehicle-to-vehicle/road-to-vehicle communications 27 Copyright ANRITSU

28 5-5. Food chain and players in Automotive market Safety, Emergency, Comfort, Infotainment, Diagnostic Car Vendors Dashboard Vendors Module Vendors Chipset Vendors Autonomous car ADAS (Advanced Driver Assistance System) Telematics (Telecommunication + Informatics) ITS C-ITS (Intelligent Transport Systems) Transceiver module (Cellular + V2X + Connectivity + Antenna +etc. ) Rader module Antenna Satellite receiver Tuner Cellular module, Connectivity module, V2X module, Rader, Antenna, Connector, Cable, etc Semiconductors for communication 28 Copyright ANRITSU

29 6. Network Reshaping Test Solutions Further evolution towards 5G/IoT RRH BBU BBU Optical Fiber RRH Main Competitors Viavi (formerly known as JDSU) Mobile Fronthaul Mobile Backhaul Macro Cell Small Cell Current LTE Network 5G Network Reshaping the Future of Network Test Solution RRH: Remote Radio Head BBU: Base Band Unit Wireless Integration Optical Transport (CPRI) MT1000/1100 Network Master MT8220T BTS Master Wireless Optimization MT8220T BTS Master [ Cloud Solution ] 29 Copyright ANRITSU

30 6-1. Test Solutions for support of Cloud Service expanding Main Competitors Cloud Service Big data AI Keysight WAN Data Center Expansion of Data Center Higher- speed Larger- capacity Conversion to fiber optics R&D High speed communication (100Gbps E) Manufacturing BUS Optical Device 30 Copyright ANRITSU

31 7. PQA business segments (Products Quality Assurance) General examples of food production process glass, plastic rubber packing Materials Automatic Combination Weigher 包装機 Metal Detector Check Weigher stone fragment bone, shell Contamination Variation in the amount of contents Breaks and chips Defective packaging (sealing) Printing error/print blur Weighing and filling Packaging Weight inspection Contaminant inspection Package inspection Box packing/packaging machine X-Ray Inspection System Major customers Boxing Rejecter Kraft Foods Group, Unilever, Nippon Ham Group, Glico Group, Nissui Group, etc. 31 Copyright ANRITSU

32 7-1. The growing PQA business < PQA > Revenue (B yen) Op. profit ratio (%) Revenue Op. profit ratio 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY20 (Forecast) (Plan) 0 Market North America Asia Japan Major initiatives Develop market with X-ray inspection systems as a key solution Improve market share through quality assurance solutions with high added value in response to cutting-edge needs Main Competitors Mettler-Toledo, Marel, Ishida 32 Copyright ANRITSU

33 8. Financial Strategy D/E ratio (%) IFRS <Target> Ratio of net assets to total assets: 60% D/E ratio : 30% (59, 25) (61, 29) (61, 29) (62, 20) Ratio of net assets (Ratio of net assets to total assets, D/E ratio) to total assets (%) 33 Copyright ANRITSU

34 8-1. Profit structure improvement targets < T&M > 100% 80% 60% 40% 20% 21% 17% 12% 7% 4% 5% 20% 30% 32% 35% 38% 39% 39% 30% 11% 12% 13% 14% 13% 14% 12% 38% 38% 40% 41% 44% 42% 38% Operating profit SG&A R&D COGS 0% FY12 FY13 FY14 FY15 FY16 FY17 Operating (Forecast) Model 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. 34 Copyright ANRITSU

35 9. Shareholder Return Policy Dividend Policy Distribute profits in accordance with its consolidated performance(net profit) and by taking into account the total return (1)Take the basic approach of raising dividends on equity (DOE) in accordance with the increase in consolidated profits for the fiscal year (2)Aim at a consolidated dividend payout ratio of 30 percent or more 35 Copyright ANRITSU

36 9-1. Dividend forecast Annual dividend Dividend per share Profit Payout ratio FY2017 (Plan) 15 yen 3.0 B yen 69% FY2016 (Forecast) 15 yen 2.7 B yen 76% Total return ratio of FY2012~FY2014 : 45.4% (including 5.0 billion yen of purchase of treasury stock) Payout ratio (%) Total return ratio (%) 45.4% (Forecast) (Plan) 36 Copyright ANRITSU

37 10. Corporate Governance System (At June 28, 2017) For improving competitiveness and continuously enhancing corporate value Shareholders Meeting Audit Committee Board of Directors Management Audit Department Independent Committee [Legend] Outside executive Chairman Internal executive Nominating Committee Compensation Committee 37 Copyright ANRITSU

38 Ⅱ. Financial Results for the Fiscal Year ended March 31, Copyright ANRITSU

39 Ⅱ-1. Consolidated performance - Financial results - Both profit and revenue were down Unit: Billion Yen International Financial Reporting Standards (IFRS) FY2015 FY2016 YoY YoY (%) (For reference) Oct.27 Forecast Order Intake (5.7) -6% 87.5 Revenue (7.9) -8% 87.5 Operating profit (loss) (1.7) -28% 2.2 Profit (loss) before tax (1.8) -33% 1.4 Profit (loss) (1.1) -27% 1.0 Comprehensive income % - Note : Numbers are rounded off in each column 39 Copyright ANRITSU

40 Ⅱ-2. Consolidated performance - Results by business segment - International Financial Reporting Standards (IFRS) T&M PQA Others Total FY2015 FY2016 YoY YoY (%) Unit: Billion Yen (For reference) Oct.27 Forecast Revenue (8.4) -12% 58.5 Op. profit (loss) (2.6) -55% 0.5 Adjusted operating profit (loss) (2.9) -54% - Revenue % 20.0 Op. profit (loss) % 1.4 Revenue (0.2) -2% 9.0 Op. profit (loss) (0.0) Revenue (7.9) -8% 87.5 Op. profit (loss) (1.7) -28% 2.2 Adjusted operating profit (loss) (2.0) -30% - Note : Numbers are rounded off in each column * Adjusted operating profit is Anritsu s original profit indicator to measure results of its recurring business by excluding profit and loss items with a transient nature from operating profit. No items were adjusted for PQA and Others segments T&M: Test & Measurement * PQA : Products Quality Assurance 40 Copyright ANRITSU

41 Ⅱ-3. Consolidated performance - Revenue and Op. profit by quarters - Consolidated operating margin was 10.1%, operating margin for the T&M was 8.3% for 4Q Bn. Yen Bn. Yen Others PQA T & M Revenue Note : Numbers are rounded off in each column Op. profit(loss) 41 Copyright ANRITSU

42 Ⅱ-4. Overview of operations by business segment Segment T&M: Mobile NW FY2016 (April, 2016 to March, 2017) Restrained investment in the smartphone-related market continued LTE- Advanced 5G, IoT, Connectivity Investment was restrained during this transition period from LTE to 5G Automotive and 5G / IoT development projects are beginning to materialize Capital investment in optical digital related business was strong Asia Americas Restrained investment in LTE-Advanced development continued Competition intensified due to a slowdown in growth of the overall smartphone manufacturing market Capital investment in optical digital related business is on a recovery trend PQA: Strong demand for X-rays both in Japan and overseas T&M: Test & Measurement NW: Network Infrastructure PQA : Products Quality Assurance 42 Copyright ANRITSU

43 Bn. Yen Ⅱ-5. Transition of Orders T&M :Results continued to be below previous fiscal year levels for all quarters. PQA :Record high for any quarter. Reached 20.6 billion yen for the full year. Others PQA T & M FY2014 FY2015 FY2016 Note : Numbers are rounded off in each column 43 Copyright ANRITSU

44 Ⅱ-6. Transition of Revenue by region Bn. Yen Full year figures were lower than those for the previous fiscal year in all overseas regions Asia & Others EMEA Americas Japan FY2014 Note : Numbers are rounded off in each column FY2015 FY Copyright ANRITSU

45 Ⅱ-7. Cash Flow (1/2) Unit : Billion Yen FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Operating CF Investing CF Free CF Note1 : Numbers are rounded off in each column Note2 : FY2010 : Japanese Generally Accepted Principles (J-GAAP) FY2011~FY2016 :International Financial Reporting Standards (IFRS) 45 Copyright ANRITSU

46 Ⅱ-7. Cash Flow (2/2) Operating cash flow margin ratio was 10.5% Details Unit : Billion Yen Cash Flow ( FY2016 ) Operating CF : Investing CF : Financial CF : 9.2 Bn. Yen (3.7) Bn. Yen (2.8) Bn. Yen Free Cash Flow Op. CF + Inv. CF : 5.6 Bn. Yen Cash at the end of period 39.7 Bn. Yen Interest-bearing debt Bn. Yen Note : Numbers are rounded off in each column * Other main items: Advances received, etc. Op. CF 9.2 Inv. CF (3.7) Fin. CF (2.8) 46 Copyright ANRITSU

47 Ⅱ-8. Forecast for full year of FY2017 Revenue Profit (loss) T&M PQA Others Focus on capturing growth drivers to ensure better results than the previous fiscal year level. International Financial Reporting Standards (IFRS) Operating profit (loss) Profit (loss) before tax FY2016 FY2017 Unit: Billion Yen Actual Forecast YoY YoY(%) % % % % Revenue % Op. profit (loss) % Revenue % Op. profit (loss) % Revenue (0.2) -2% Op. profit (loss) (0.1) -13% Note 1 : Exchange rate : FY2016 (Actual) 1USD=108 yen, 1EURO=119 yen FY2017 (Forecast) 1USD=110 yen, 1EURO=120 yen Note 2 : Numbers are rounded off in each column 47 Copyright ANRITSU

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