Evolution of mobile broadband and T&M business LTE

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1 Evolution of mobile broadband and T&M business LTE business July 29, 2010 Kenji Tanaka Anritsu Corporation President of T&M group Kenji Tanaka Tokyo Stock Exchange : Copyright 2010 Anritsu Corporation. All rights reserved 1

Tanaka Tokyo Stock Exchange : 6754 http://www.anritsu.

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 forwardlooking 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

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

3 Index Evolution of mobile broadband and Anritsu business LTE business Sales records and next step 3

4 Evolution of Mobile Broadband New entrants such as IT companies Smart phones Multifunction terminals Increase of rich applications and services Demand for faster wireless communications Demand for higher network traffic New mobile communication standard, building network infrastructure Mobile access : rapid increase of traffic (moving to LTE, HSPA+) Mobile backhaul : metal optical, microwave Core Network : faster speed / higher traffic (40G/100G) 4

mobile communication standard, building network infrastructure Mobile access : rapid increase of traffic (moving

5 Trend of Data ARPU and Voice ARPU ARPU [Yen] ARPU [Yen] ARPU [Yen] 4,000 3,500 3,000 2,500 2,000 3,000 2,500 2,000 1,500 1,000 4,500 4,000 3,500 3,000 2,500 2,000 A Voice ARPU A Data ARPU FY08Q1 FY08Q2 FY08Q3 FY08Q4 FY09Q1 FY09Q2 FY09Q3 FY09Q4 B Voice ARPU B Data ARPU FY08Q1 FY08Q2 FY08Q3 FY08Q4 FY09Q1 FY09Q2 FY09Q3 FY09Q4 C Voice ARPU C DataARPU FY08Q1 FY08Q2 FY08Q3 FY08Q4 FY09Q1 FY09Q2 FY09Q3 FY09Q4 Data ARPU is going to exceed Voice ARPU ARPU : Average monthly Revenue per User Based on operators releases 5

ARPU B Data ARPU FY08Q1 FY08Q2 FY08Q3 FY08Q4 FY09Q1 FY09Q2 FY09Q3 FY09Q4 C Voice ARPU C DataARPU FY08Q1 FY08Q2 FY08Q3 FY08Q4

6 Network infrastructure to support services and applications Handsets faster and with higher capacity Enhancing networks supporting mobile broadband Core Network High speed / high capacity (40G/100G) Data Center Handsets: 2G 3G/3.5G LTE Increase of service & Apps High speed / high capacity Technology evolution Mobile Backhaul Base Station Controller High speed / high capacity (40G/100G) Mobile Backhaul Metro Network Metro Network Handsets vendors: M&A of existing players New entrants from IT Base Station Copper Optical fiber (high speed) FTTH/FTTx 6

5G LTE Increase of service & Apps High speed / high capacity Technology evolution Mobile Backhaul Base Station Controller High speed /

7 Network infrastructure to support services and applications Anritsu s business domain Solutions from wireless to wired Handsets faster and with higher capacity Enhancing networks supporting mobile broadband Core Network High speed / high capacity (40G/100G) Data Center Handsets: 2G 3G/3.5G For chipset / LTE Increase handset of service : & Apps High speed R&D/ high capacity Technology Conformance evolution Interoperability Manufacturing Maintenance Handsets vendors: M&A of existing players New entrants from IT For base Base station : Station Mobile Backhaul Base Station Controller R&DCopper Manufacturing Optical Installation fiber Maintenance (high speed) For optical fiber / device / module(40g/100g) : High speed / R&D high capacity Manufacturing (40G/100G) Metro Network For optical fiber : Installation Maintenance FTTH/FTTx Mobile Backhaul Metro Network 7

5G For chipset / LTE Increase handset of service : & Apps High speed R&D/ high capacity Technology Conformance evolution Interoperability Manufacturing Maintenance Handsets vendors: M&A of existing

8 Devices to support services and applications Handset Base station Mobile backhaul Metro/Core network Data Center T&M Mobile General purpose, installation General purpose, optical Digital, Ultra high speed, optical Ultra high speed, general purpose Device Module Device Module Device Module Device Module Device Module General purpose measuring instruments Providing measuring solutions for all areas 8

speed, optical Ultra high speed, general purpose Device Module Device Module Device Module Device

9 Business policy for LTE 1. We maintain strong relationships with chipset and handset vendors, and always offer unrivaled development and conformance test solutions. 2. We are developing business with UE vendors by offering leading operators Inter-Operability Test services. 3. We are expanding our business by enhancing customer support readiness for new players, such are smart-phone makers. 9

development and conformance test solutions. 2.

10 LTE network rollout and T&M business Firm commitments to deploy LTE : 80 operators in 33 countries A disparity in the speed and timing of LTE adoption among different countries Can be a long-term, stable business Americas (2010 Verizon, 2011 AT&T ) Japan (2010 DoCoMo, 2011 Softbank, 2012 KDDI) Asia (2011 Korea, China,,,) Europe * (2011 年 vodafone T-Mobile ) Emerging (Russia, India, Brazil.) * TeliaSonera launched LTE service in

Verizon, 2011 AT&T ) Japan (2010 DoCoMo, 2011 Softbank, 2012 KDDI) Asia (2011 Korea, China,,,) Europe * (2011 年

11 T&M business opportunities Device handset / base station mobile backhaul core network Can be a wide range and long term business Service in Base station Handset Device Backhaul R&D, Manufacturing, Installation, Maintenance share 50% R&D, Manufacturing Core network R&D, Manufacturing, Installation, Maintenance R&D, Manufacturing, Installation, Maintenance share 70% R&D, Manufacturing, Installation, Maintenance Time line 11

Maintenance share 50% R&D, Manufacturing Core network R&D, Manufacturing, Installation, Maintenance R&D,

12 Expansion of LTE and T&M business Increase of services and applications Demand on solutions to assure quality of services and applications Conformance testing A test to assure interconnection between base stations to handsets conforming to 3GPP standard Inter-operability testing A test to assure connection and data exchange between different terminals, systems and networks 12

interconnection between base stations to handsets conforming to 3GPP standard

13 Anritsu s s Strengths 1. Providing W-CDMA measuring solutions with: the first measuring solution in the world firm relationships with the world leading customers technological and supporting strengths 2. Covering wireless and wired measuring solutions 13

solution in the world firm relationships with the world leading

14 Anritsu: Specific Results & Future Developments Initiative Result Date Future Developments Solutions for NTT DoCoMo (Japan) and Japanese terminal vendors Partnership with LG (Korea) Mobile Word Congress (Spain) Solutions for Verizon Wireless (US) Conformance system for RF/protocol Partnership with Samsung (Korea) NGMN Industry Conference & Exhibition 2010 (China) Solution for China Mobile (China) (TD-SCDMA) Solution for large telecommunication-equipment vendors Won exclusive measurement contracts for chipset development T&M solution for LG s LTE USB modem (Test demonstration done) Anritsu s BTS master selected for measurement for base-station construction & maintenance Obtained GCF (certification authority) certification (industry leader) Connection demonstration with Samsung s TD-LTE devices Won order for protocol conformance system (only Anritsu supports TD- SCDMA) Won orders in base stationmanufacturing business FYE 3/2009 FYE 3/2010 Feb Mar Apr Jun Jun Jun Expand business to measurement for individual terminal development, and conformance/iot test. Improve relations with LGE & expand business Grow stable business by being de-facto measurement provider for base-station construction and maintenance Build on orders from key chipset vendors to expand business to terminal vendors Maintain partnership with Samsung on both FDD and TDD LTE, and expand business Offer continuous support from TD-SCDMA to TD-LTE, expand business in China, and expand business to terminal vendors selling in China Expand manufacturing business through continuous support 14

(China) (TD-SCDMA) Solution for large telecommunication-equipment vendors Won exclusive measurement contracts for chipset development T&M solution for LG s LTE USB modem (Test demonstration done)

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Becoming a cutting-edge, trusted global market leader

Becoming a cutting-edge, trusted global market leader May 2012 Hirokazu Hashimoto President and Group CEO Anritsu Corporation TSE code : 6754 http://www.anritsu.com 1 Cautionary Statement All information