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Image Size W195 x H530 px GLP2020 Progress Status Hirokazu Hamada April 26th, 2019 https://www.anritsu.com TSE code:6754 Representative Director, President, Group CEO, Anritsu Corporation

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Page 1: GLP2020 Progress Status · Sony Xperia Huawei Mate 20 Xiaomi Xiaomi 9 ZTE Axon 10 5G TCL Alcatel 7 5G Samsung Galaxy Fold TCL Dragon Hinge MWC 2019, the largest mobile event in the

Image SizeW195 x H530 px

GLP2020Progress Status

Hirokazu Hamada

April 26th, 2019

https://www.anritsu.com

TSE code:6754

Representative Director, President, Group CEO,Anritsu Corporation

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2 Copyright© ANRITSU CORPORATION

All information contained in this release which pertains to the current plans, estimates, strategiesand beliefs of Anritsu Corporation (hereafter "Anritsu") that is not historical fact shall be consideredforward-looking statements of future business results or other forward-looking projections pertinentto the business of Anritsu. Implicit in reliance on these and all future projections is the unavoidablerisk, caused by the existence of uncertainties about future events, that any and all suggestedprojections may not, come to pass. Forward-looking statements include but are not limited to thoseusing words such as "believe", "expect", "plans", "strategy", "prospects", "forecast", "estimate","project", "anticipate", "may" or "might" and words of similar meaning in connection with a discussionof future operations or financial performance.

Actual business results are the outcome of a number of unknown variables and may substantiallydiffer from the figures projected herein.Factors which may affect the actual business results include but are not limited to the economicsituation 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 buyssupplies, 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. Anritsudisclaims any such obligation.

Cautionary Statement

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Copyright© ANRITSU CORPORATION3

Agenda

I. GLP2020 Progress Status and FY2019 Initiatives

II. MWC 2019 Report

III. Roadmap of 5G

Appendix

Latest Trends in 5G and Anritsu’s Test Solutions

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4 Copyright© ANRITSU CORPORATION

53.570.6

71.276.0

73.467.7

59.3

54.4 60.068.2 

69.0 70.0 

12.3

14.214.4 16.9 16.2

18.919.6 22.5

23.523.1  24.5

26.0 

0.0

4.0

8.0

12.0

16.0

20.0

24.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2018 FY2019 FY2020

Act Act Act Act Act Act Act Act Plan Act Plan Plan

Op. profit

(B Yen)Revenue

(B Yen)

Op. profittrends

Other

PQA

T&M

Op.margin

consolidated 9% 15% 17% 14% 11% 6% 5% 6%

T&M 9% 20% 21% 17% 12% 7% 4% 3%

PQA 5% 4% 6% 7% 5% 6% 7% 9%

GLP plan GLP2012 GLP2014 GLP2017

77.9

93.6 94.7101.9

95.5

86.0

Now98.8

87.6

Op. profittrends

T&MRevenue

PQARevenue

GLP20XX:Name of business plan

105.0

92.0

7% 11% 10% 14%

6% 14% 12% 14%

9% 7% 8% 12%

GLP2020

Ⅰ- 1. GLP2020:Revenue and Op. profit Plan Progress

99.7 102.0

18%

20%

>12%

GLP2023

Target

FY202X

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5 Copyright© ANRITSU CORPORATION

100.0 B Yen

Automotive/IoT

5G

Op. Margin: 20%

FY2018Actual

GLP2020FY202X

Data Center/Computing

New Business

70.0 B YenOp. Margin: 14%

Ⅰ- 2. GLP2020 Progress Status in T&M Business

FY2019 Initiatives

Capture growth opportunities by focusing on boosting competitiveness in 5G business

- Enhance global development framework and customer support system

- Promote conformance test system business

FY2019Plan

Op. Margin: 14%

69.0 B YenOp. Margin: 12%

68.2 B Yen

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6 Copyright© ANRITSU CORPORATION

Ⅰ- 3. GLP2020 Progress Status in PQA Business

FY2018Actual

GLP2020FY202X

FY2019Plan

Americas

Japan

EMEA

Asia

30.0 B YenOp. Margin : ≧12 %

26.0 B YenOp. Margin: 12%

24.5 B YenOp. Margin: 8%Op. Margin: 7%

23.1 B Yen

FY2019 Initiatives

- Strengthen sales bases in Americas and Europe

- Promote shift to platform solutions

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7 Copyright© ANRITSU CORPORATION

- Sustainable growth in 2020 and beyond

- Become a highly profitable company. Operating

margin of 18%.

- A company that regularly

earns over 100.0 billion yen.

Ⅰ- 4. Set out for Beyond2020

Grow sustainably beyond 2020 while supporting the safety and security of society.

2019

GLP2020

5GCommunication

5Gapplications,Automotive

Non-telecom T&M business

Food safety

Drug Safety

T&M

PQA

NewBiz

Resolve social issues by realizing Beyond 2020

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8 Copyright© ANRITSU CORPORATION

Ⅱ . MWC 2019 Repor t

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9 Copyright© ANRITSU CORPORATION

Foldable smartphones were the center of attention.

Many device vendors exhibited 5G smartphones.

HuaweiMate X 5G

TCL

Black Berry

The spotlight was on 5G smartphones and foldables.

SamsungGalaxy S10 5G

LG

V50 5G

Sony

Xperia

Huawei

Mate 20

Xiaomi

Xiaomi 9

ZTEAxon 10 5G

TCLAlcatel 7 5G

SamsungGalaxy Fold

TCLDragon Hinge

MWC 2019, the largest mobile event in the worldheld in Barcelona, Spain, from February 25 to 28. Ⅱ-1. Overview of MWC19

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10 Copyright© ANRITSU CORPORATION

5G StadiumEdge

ComputingFor V2X5G Factory

Music Play

xR(VR, AR, MR, SR)

Ⅱ-2. xR a Standout Among 5G Use Cases

AR : Augmented Reality VR : Virtual Reality MR : Mixed Reality SR : Substitutional Reality

Telemedicine

The name “xR” is catching on as an umbrella term for AR, VR, MR and SR. New expressions and uses are growing.Industrial IoT proposals that take advantage of low latency 5G are increasing.

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11 Copyright© ANRITSU CORPORATION

Ⅱ-3. Anritsu Booth

CATR : Compact Antenna Test Range

Anritsu display covered our full lineup from 5G development to conformance tests, manufacturing and maintenance.

MS2090AField Master Pro9kHz – 54GHz

First showcase of CATR chamber

First showcase of handheld spectrum analyzer for 5G

Performance test for commercial devices RF Conformance test Protocol

conformance test

Page 12: GLP2020 Progress Status · Sony Xperia Huawei Mate 20 Xiaomi Xiaomi 9 ZTE Axon 10 5G TCL Alcatel 7 5G Samsung Galaxy Fold TCL Dragon Hinge MWC 2019, the largest mobile event in the

12 Copyright© ANRITSU CORPORATION

Ⅱ-4. All Eyes on 5G Live Demonstration Example Using MT8000

Sub6GHz throughput demonstrationAchieved stable over 4 Gbps

Media Tek

SonyQualcomm

Inseego

Connectivity tests were conducted with Qualcomm, Sony, MediaTek and Inseego devices.

Anritsu Booth Media Tek Booth

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13 Copyright© ANRITSU CORPORATION

CY2018 CY2019 CY2020

3GPP Rel.15 NSA specifications(Phase1 Ultrahigh speed)

★ Rel.16 (Phase2 Extended use cases such as ultra-low latency, super large number of connections)

Expand commercial device development Expand commercial device development

*Created by Anritsu referring to publicly available information

Pilot device developmentPilot device development

Rel.15 Commercial chip developmentRel.15 Commercial chip development

Rugby World Cup

Tokyo Olympics・Paralympic

Ⅲ-1. Roadmap of 5G

MWC19

5G frequency assignment

MWC Shanghai

NSA + Millimeter wave (C) *Introduce Sub6 in the future NSA + Sub6(C) *Introduce Millimeter wave in the future

NSA +Sub6&Millimeter wave (P)

SA&NSA + Sub6 (P) SA or NSA+ Sub6 (C)

NSA + Sub6&Millimeter wave (C)

Expand 5G servicesExpand 5G servicesLaunch of 5G services by major business operators in various countries Launch of 5G services by major business operators in various countries

[ Legend ]P. Trial, Pre service, Pre commercialC. Commercial

5G related events

Rel.16 Chip developmentRel.16 Chip development

NSA + Sub6 (C)NSA + Sub6 (C)

★ WRC-19

Rel.16 Device developmentRel.16 Device development

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14 Copyright© ANRITSU CORPORATION

Appendix

Latest Trends in 5Gand

Anritsu’s Test Solutions

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15 Copyright© ANRITSU CORPORATION

3Gスマホの製造LTEの開発

Market size

Manufacturing of 3G smartphoneDevelopment of LTE

Mobile Market

・ Investment towards Gigabit LTE development

New marketNew market

5G Development5G Development

・ Accelerated investment in 5G(NSA-NR) development・ Investment in 5G(SA-NR) development : China

LTE-Advanced ProLTE-Advanced Pro

5G Manufacturing5G Manufacturing

・5G(Sub6GHz) manufacturing market

LTE-AdvancedLTE-Advanced

・ IoT/ Automotive ・ Utilization of 5G in the new field

Wireline Market

IP Data traffic/Cloud ServicesIP Data traffic/Cloud Services・High speed and increasing capacity of the data center

Business opportunity

・Investment in small cell

20122008 2018 2020 20242019

Appendix-1 T&M:Mobile market trends and Business opportunityNow

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16 Copyright© ANRITSU CORPORATION

Sub6GHz600/700 MHz 3.1〜4.2 GHz 4.4〜4.99 GHz 26/28 GHz 38/42 GHz

1GHz 3GHz 4GHz 5GHz 20GHz 50GHz30GHz 40GHz

SubGHz

*Created based on public disclosure information.

Millimeter WaveAppendix-2. 5G Band Allocations in the World

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17 Copyright© ANRITSU CORPORATION

| 2018 | 2019 | 2020 | 2021 |

Chipset

Device

Operators

★3GPP Release 15 ★3GPP Release 16

Qualcomm(America)Samsung (Korea)

MediaTek (Taiwan)

Intel (America)Next Chipset

Next Device

We expect full-scale commercial service to begin in 2020 or later.

*Created by Anritsu, with reference to materials from “Public Meeting for Exchanging Opinions on Radio Policy (58th Meeting),” issued by the Ministry of Internal Affairs and Communications (September 21, 2018), as well as other publicly available information.

Samsung(Korea)

LG (Korea)

Motorola (America)

Huawei (China)

Sony (Japan) Sharp (Japan)

Verizon(America)AT&T(America)KT, SKT, LGU+ (Korea)

CMCC (China)

Docomo, KDDI, SoftBank (Japan)

Appendix-3. Current status and outlook for major 5G vendors and operators

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18 Copyright© ANRITSU CORPORATION

Baseband Chipset/ RF Front End

Protocol

Conformance Test (CT)

Carrier Acceptance Test (CAT)

Verification of Core Technologies at Chipset Vendors

Evaluation ofFunctions &

Performance at UE Vendors

Conformance Testat UE Vendors& Test Houses

Acceptance Testat Carriers &Test Houses

Mass ProductionTest at UE

Vendors & EMS

Mass ProductionTest at UE

Vendors & EMS

Evaluation of Functions & Performance

MT8000ARadio Communication Test Station

MT8870AUniversal Wireless Test Set

ME7834NR/ME7873NR5G NR Mobile Device Test Platform

RF Calibration & Inspection

Appendix-4. 5G terminal development/manufacturing process and test solutions

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