Anritsu : CONSOLIDATED FINANCIAL SUMMARY FOR THE FIRST QUARTER ENDED JUNE 30, 2022(IFRS)

CONSOLIDATED FINANCIAL SUMMARY FOR THE FIRST QUARTER ENDED JUNE 30, 2022

(IFRS)

Company Name: ANRITSU CORPORATION

July 28, 2022

Stock exchange listings: Tokyo

Securities code: 6754

URL: https://www.anritsu.com

Representative: Hirokazu Hamada ; President and Director

Inquiries: Akifumi Kubota ; Director, Executive Vice President, CFO

Tel : [phone]

Quarterly statement filing date (as planned): August 4, 2022

Dividend payable date (as planned): -

Supplemental material of quarterly results: Yes

Convening briefing of quarterly results: Yes (for financial analysts and institutional investors)

1. Consolidated financial results of the first quarter ended June 30, 2022

(Millions of yen, round down)

(From April 1, 2022 to June 30, 2022)

(1) Consolidated Operating Results

(Note) Percentage figures indicate change from the same quarter a year ago.

Profit (loss)

Total

Operating profit

Profit (loss)

attributable to

Revenue

Profit (loss)

comprehensive

(loss)

before tax

owners of

income

parent

For the three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

June, 2022

26,180

10.1

3,017

-2.1

3,915

26.9

2,926

39.3

2,917

40.0

6,651

185.4

June, 2021

23,788

-7.4

3,083

-39.8

3,085

-39.7

2,100

-40.6

2,083

-40.7

2,330

-37.1

Basic earnings

Diluted earnings

per share

per share

For the three months ended

Yen

Yen

June, 2022

21.70

21.70

June, 2021

15.16

15.15

(2) Consolidated Financial Positions

Equity attributable to

Equity attributable to

Total assets

Total equity

owners of parent to

owners of parent

total assets ratio

For the three months ended

Millions of yen

Millions of yen

Millions of yen

%

June, 2022

153,539

115,076

114,821

74.8

For the year ended

March, 2022

153,261

114,442

114,196

74.5

2. Dividends

Annual dividend

First quarter

Second quarter

Third quarter

Fiscal year end

Total

For the year ended

Yen

Yen

Yen

Yen

Yen

March, 2022

－

20.00

－

20.00

40.00

For the year ending

March, 2023

－

For the year ending

March, 2023

20.00

－

20.00

40.00

(Forecast)

(Note) Correction of dividend forecast from the most recent dividend forecast: No

3. Consolidated Forecast for the year ending March 31, 2023 (From April 1, 2022 to March 31, 2023)

(Note) Percentage figures indicate change from the previous period.

Profit (loss)

Revenue

Operating profit

Profit (loss)

Profit (loss)

attributable to

Basic earnings

(loss)

before tax

owners of

per share

parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Annual

115,000

9.1

19,000

15.2

19,000

10.8

14,000

9.0

14,000

9.4

104.17

(Note) Correction of financial forecast from the most recent financial forecast: No

• Others

(1) Material changes in subsidiaries during this period

(Changes in scope of consolidations resulting from change in subsidiaries) : None

Number of subsidiaries newly consolidated : -

Number of subsidiaries excluded from consolidation : -

1. Changes in accounting policies and accounting estimates

1. Changes in accounting policies required by IFRS : None
2. Changes in accounting policies other than IFRS requirements : None
3. Changes in accounting estimates : None

1. The number of issued shares

1. Number of issued shares at the period end (including treasury shares)

		Q1FY2022 (Jun. 30, 2022)	135,830,594	shares	FY2021 (Mar. 31, 2022)	138,308,494	shares
2.	Total number of treasury shares at the period end
		Q1FY2022 (Jun. 30, 2022)	3,108,288	shares	FY2021 (Mar. 31, 2022)	3,349,588	shares
3.	Average number of issued shares during the period (quarterly period-YTD)
		Q1FY2022 (Jun. 30, 2022)	134,400,256	shares	Q1FY2021 (Jun. 30, 2021)	137,460,735	shares

This financial summary is not subject to audit by a certified public accountant or an audit corporation.

Notes for using forecasted information and others

・As the business forecast mentioned above are based on the recent information, actual results may vary substantially from projections above due to known or unknown risks, changes relating to uncertainties, and others. The reader should be aware that actual results may be materially different from any future results expressed herein due to various factors.

・With regard to notes for utilizing preconditions of outlook and business forecast, please refer to 1. Consolidated Financial Results (2) Outlook for the Fiscal Year Ending March 31, 2023 at page 5.

・Additional supplemental material related to the financial statements will be available at Anritsu's web site since the results briefing session to be held on July 28, 2022.

ANRITSU CORPORATION（6754） Financial Summary of 1st Quarter FY2022

INDEX

1.	Consolidated Financial Results	2
	(1)	Operating Results	2
	(2)	Outlook for the Fiscal Year Ending March 31, 2023	5
2.	Condensed Quarterly Consolidated Financial Statements	7
	(1)	Condensed Quarterly Consolidated Statement of Financial Position	7
	(2)	Condensed Quarterly Consolidated Statement of Comprehensive Income	9
	(3)	Condensed Quarterly Consolidated Statements of Changes in Equity	10
	(4)	Condensed Quarterly Consolidated Statements of Cash Flows	11
	(5)	Notes to the Consolidated Financial Statements	12
3.	Reference Information	13
	Consolidated Quarterly Financial Highlights	13
	Consolidated Quarterly Financial Position	14
	Consolidated Quarterly Segment Information	15
	Anritsu Corporation Supplement	16

1

ANRITSU CORPORATION（6754） Financial Summary of 1st Quarter FY2022

1. Consolidated Financial Results

(1) Operating Results

	Three Months Ended June 30,	(Millions of yen)
	2021	2022	Change
Orders	28,087	29,769	1,682	6.0%
Backlog	27,249	37,381	10,132	37.2%
Revenue	23,788	26,180	2,391	10.1%
Operating profit (loss)	3,083	3,017	(66)	-2.1%
Profit (loss) before tax	3,085	3,915	829	26.9%
Profit (loss)	2,100	2,926	825	39.3%
Profit (loss) attributable to owners of	2,083	2,917	833	40.0%
parent

In the field of information and communication, which is the main field of Test and Measurement Business, 5G Smartphone penetration is slow despite operators in each country has already initiated 5G service. This is because of some technical challenges in 5G via millimeter wave and delayed commercialization via C-band(*1) in America. However, 3GPP completed standardization of release 17(*2), targeting improved 5G efficiency and capability such as expansion of high frequency range, expansion of communication area, low-power consumption, and low-cost communication in March 2022. Even in the United States, where adoption of commercial 5G via millimeter wave is lagging, movement toward commercialization via C-band, which is in the Sub-6 GHz band, is accelerating. In response, research and development for 5G utilization in the automotive field has begun, as well as research and demonstration experiments for building 5G networks in private domains such as local 5G. In IoT field, demand for Customer-Premises Equipment (CPE) which is laid in last mile is increasing. In response, demand for developing 5G wireless module and Wi-Fi 6E has emerged. Furthermore, research and development for the next generation communication standard, 6G, has begun.

In 5G networks, the O-RAN ALLIANCE has been working to open up wireless access networks so that operators can build wireless networks more flexibly. By applying the O-RAN standard specifications to base station equipment that was previously configured with the manufacturer's proprietary interface, it has become easier to build multi-vendor radio access networks. As a result, operators around the world are introducing O-RAN, and the 5G base station market is vitalizing.

Since the data traffic is expanding rapidly due to sophisticated cloud computing services and the progress of 5G services, the network infrastructure is under strain. To solve this issue, service providers that are pursuing higher-speed networks are concentrating on the promotion of 100Gbps services, and network equipment manufacturers are developing 400Gbps network equipment.

Regarding COVID-19, the situation continues to be uncertain due to re-spreading infection by new variants. In addition, there are the following significant risk factors, increasing geopolitical risk caused by prolonged Russian invasion of Ukraine, soaring resource prices, prolonged global semiconductor shortage.

Anritsu takes measures against parts procurement risk like semiconductor shortage, such as securing inventory in an organized way, creating structure like strong relationship with business partners in order to get information quickly. Furthermore, we attempt to change high risk parts to alternative items for minimizing the risk.

Amid such environment, the Test and Measurement Business Group has focused on solution

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ANRITSU CORPORATION（6754） Financial Summary of 1st Quarter FY2022

development for the 5G investment demand as well as improvement of organizational infrastructure. Consequently, the group acquired development demand for 5G commercialization. Furthermore, it acquired development and production demand for higher-speed networks.

While in the field of PQA (Products Quality Assurance), automation investment on processed foods production lines is underway, and demand for contaminant inspection using X-rays and quality guarantee toward packaging remained steady. Amid such environment, the PQA Group has worked to reinforce competitiveness of its solutions focused on X-rays, as well as strengthen its sales structure.

As a result, during the first-quarter of the fiscal year ending March 31, 2023, orders increased 6.0 percent compared with the same period of the previous fiscal year to 29,769 million yen, and revenue increased 10.1 percent to 26,180 million yen. Operating profit decreased 2.1 percent to 3,017 million yen, profit before tax increased 26.9 percent to 3,915 million yen. Profit increased 39.3 percent to 2,926 million yen, and profit attributable to owners of parent increased 40.0 percent to 2,917 million yen.

( *1 )The name for one of the frequency bands (4 to 8 GHz) when dividing the microwave bands ( *2 )Standard number used in 3GPP

( *3 )A wireless LAN Standard that specifies the extension of the bandwidth used by the 6th generation Wi-Fi 6 to the 6 GHz band

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