Anritsu Corporation TSE:6754

Anritsu : CONSOLIDATED FINANCIAL SUMMARY FOR THE FIRST QUARTER ENDED JUNE 30, 2021(IFRS)

Published July 29, 2021 at 6:06 a.m. UTC

Source: MarketScreener

CONSOLIDATED FINANCIAL SUMMARY

FOR THE FIRST QUARTER ENDED JUNE 30, 2021

(IFRS)

Company Name: ANRITSU CORPORATION

July 29, 2021

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 : +81 46 296 6507

Quarterly statement filing date (as planned): August 13, 2021

Dividend payable date (as planned): -

Supplemental material of quarterly results: Yes

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

(Millions of yen, round down)

1. Consolidated financial results of the first quarter ended June 30, 2021

(From April 1, 2021 to June 30, 2021)

(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

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

June, 2020

25,693

10.6

5,121

90.0

5,115

102.1

3,535

97.4

3,515

97.9

3,706

348.4

Basic earnings

Diluted earnings

per share

For the three months ended

Yen

June, 2021

15.16

15.15

June, 2020

25.58

25.57

(2) Consolidated Financial Positions

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

June, 2021

141,699

108,430

108,217

76.4

For the year ended

March, 2021

144,100

109,455

109,258

75.8

2. Dividends

Annual dividend

First quarter

Second quarter

Third quarter

Fiscal year end

Total

For the year ended

Yen

March, 2021

－

15.50

－

24.50

40.00

For the year ending

March, 2022

－

For the year ending

March, 2022

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, 2022 (From April 1, 2021 to March 31, 2022)

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

Operating profit

Profit (loss)

Basic earnings

Revenue

Profit (loss)

attributable to

(loss)

before tax

owners of

per share

parent

Millions of yen

Yen

Annual

114,000

7.6

20,500

4.3

20,500

3.3

16,200

0.3

16,200

0.6

117.85

(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 : -

Changes in accounting policies and accounting estimates

Changes in accounting policies required by IFRS : None
Changes in accounting policies other than IFRS requirements : None
Changes in accounting estimates : None

The number of issued shares

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

	Q1FY2021 (Jun. 30, 2021)	138,299,494	shares	FY2020 (Mar. 31, 2021)	138,282,494	shares
2.	Total number of treasury stock at the period end
	Q1FY2021 (Jun. 30, 2021)	830,512	shares	FY2020 (Mar. 31, 2021)	830,502	shares
3.	Average number of issued shares during the period (quarterly period-YTD)
	Q1FY2021 (Jun. 30, 2021)	137,460,735	shares	Q1FY2020 (Jun. 30, 2020)	137,432,824	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, 2022 at page 4.

・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 29, 2021.

ANRITSU CORPORATION（6754） Financial Summary of 1st Quarter FY2021

INDEX

1.	Consolidated Financial Results	2
	(1)	Operating Results	2
	(2)	Outlook for the Fiscal Year Ending March 31, 2022	4
2.	Condensed Quarterly Consolidated Financial Statements	6
	(1)	Condensed Quarterly Consolidated Statement of Financial Position	6
	(2)	Condensed Quarterly Consolidated Statement of Comprehensive Income	8
	(3)	Condensed Quarterly Consolidated Statements of Changes in Equity	9
	(4)	Condensed Quarterly Consolidated Statements of Cash Flows	10
	(5)	Notes to the Consolidated Financial Statements	11
3.	Reference Information	12
	Consolidated Quarterly Financial Highlights	12
	Consolidated Quarterly Financial Position	13
	Consolidated Quarterly Segment Information	14
	Anritsu Corporation Supplement	15

ANRITSU CORPORATION（6754） Financial Summary of 1st Quarter FY2021

1. Consolidated Financial Results

(1) Operating Results

	Three Months Ended June 30,	(Millions of yen)

	2020	2021	Change
Orders	29,019	28,087	(932)	-3.2%
Backlog	25,237	27,249	2,011	8.0%
Revenue	25,693	23,788	(1,904)	-7.4%
Operating profit (loss)	5,121	3,083	(2,037)	-39.8%
Profit (loss) before tax	5,115	3,085	(2,029)	-39.7%
Profit (loss)	3,535	2,100	(1,435)	-40.6%
Profit (loss) attributable to owners of parent	3,515	2,083	(1,432)	-40.7%

In the field of information and communication, which is the main field of Test and Measurement Business, 5G commercialization schedules of operators in each country are making progress smoothly. In July 2020, 3GPP has standardized release 16*, which prescribe ultralow latency communications and multiple simultaneous connections for expansion of use case. 3GPP is working on standards of release 17*, 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 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. Furthermore, research and development for the next generation communication standard, 6G, has begun.

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.

In terms of the business environment, the spread of vaccinations against the COVID-19 is expected to normalize economic activities. However, there are concerns that the reemergence of the infection will have a prolonged impact. In addition, procurement risks due to the global shortage of semiconductors have also become apparent.

Amid such environment, the Test and Measurement Business Group has focused on solution 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 (Product 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, 2022, orders decreased 3.2 percent compared with the same period of the previous fiscal year to 28,087 million yen, and revenue decreased 7.4 percent to 23,788 million yen. Operating profit decreased 39.8 percent to 3,083 million yen, profit before tax decreased 39.7 percent to 3,085 million yen. Profit decreased 40.6 percent to 2,100 million yen, and profit attributable to owners of parent decreased 40.7 percent to 2,083 million yen.

(*) standard number used in 3GPP

ANRITSU CORPORATION（6754） Financial Summary of 1st Quarter FY2021

Operating results by segment are as follows.

1. Test and Measurement
	Three Months Ended June 30,	(Millions of yen)

	2020	2021	Change
Revenue	19,260	16,791	(2,468)	-12.8%
Operating profit (loss)	4,946	2,851	(2,095)	-42.4%

This segment group develops, manufactures and sells measuring instruments and systems for a variety of communication applications, and service assurance. The group delivers them to service providers, network equipment manufacturers, and maintenance and installation companies.

During the first-quarter of the fiscal year ending March 31, 2022, development demand for 5G chipsets and mobile devices was growing steadily. In addition, we acquired development and production demand for network speedup in data centers. However, revenue have decreased compared with the same period of previous fiscal year due to the global shortage of semiconductors.

Consequently, segment revenue decreased 12.8 percent compared with the same period of previous fiscal year to 16,791 million yen, operating profit decreased 42.4 percent to 2,851 million yen.

2. Products Quality Assurance
	Three Months Ended June 30,	(Millions of yen)

	2020	2021	Change
Revenue	4,416	5,103	687	15.6%
Operating profit (loss)	138	377	239	172.9%

This segment group develops, manufactures and sells production management systems and quality management systems, such as high-precision and high-speed auto checkweighers, automatic combination weighers and metal detectors, for the food, pharmaceutical and cosmetics industries.

During the first-quarter of the fiscal year ending March 31, 2022, capital investment in the food market for the purpose of automating quality assurance processes and saving manpower remained strong both in Japan and overseas. As a result, segment revenue increased 15.6 percent compared with the same period of previous fiscal year to 5,103 million yen, and operating profit increased 172.9 percent to 377 million yen.

3. Others
	Three Months Ended June 30,	(Millions of yen)

	2020	2021	Change
Revenue	2,016	1,893	(123)	-6.1%
Operating profit (loss)	194	49	(145)	-74.7%

This segment comprises Environmental Measurement, Sensing & Devices, Logistics, Welfare services, Real estate leasing and other businesses.

During the first-quarter of the fiscal year ending March 31, 2022, revenue decreased compared with the same period of previous fiscal year due to intensified price competition in Sensing & Device business. Segment revenue decreased 6.1 percent compared with the same period of the previous fiscal year to 1,893 million yen, and operating profit decreased 74.7 percent to 49 million yen.

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