Anritsu Corporation has set a sales target of ¥140 billion (US$900 million) for the final year of its three-year management plan GLP2026, which will end FY2026.

Accordingly, the company has developed a growth strategy by strengthening the next-generation communication standard 6G.

In addition, Anritsu will also tap new domain businesses, namely EVs and batteries; pharmaceuticals and medical products; and industrial measurement.

The company plans to invest more than ¥40 billion (US$257 million) in growth for M&A and capital investment.

Eyes Other Fields, Too

Recently, during a virtual presentation, Hirokazu Hamada, Anritsu Representative Director and President, expressed optimism in achieving the fruits of the GLP2026.

“If we can stay ahead of the 6G market during the transition period between 5G and 6G and achieve steady growth, we will be on our way to becoming a company with 200 billion yen in sales by 2030.”

Specifically, the entire group, including in-house companies, will work on 6G-related programs. Meanwhile, the company envisions the new domain businesses to accelerate further growth.

Anritsu will differentiate itself in 6G-related businesses with its elemental technologies and key devices.

Furthermore, Anritsu will focus further on industrial measurement, which is a mainstay category of the company. Hamada explained, “We have versatile measuring equipment. We have been selling products only to the telecommunications market. However, we will take measures to expand our target to various markets.”

Capitalizes on Training, M&As

The company has launched a training center to develop human resources for the new domain business. Specifically, the A-SKILLs center aims to double the number of personnel with specialized knowledge and sales skills in three years.

Meanwhile, the company plans to enter mergers and acquisitions in the telecommunications measurement business.

The company’s capital investment has been around ¥5 billion per year. Accordingly, M&A will play a crucial role that will account to ¥25 billion in investment.

Anritsu’s sales target for this business for FY2026 is ¥90 billion. In FY2023, the company netted sales of ¥71 billion. Thus, Anritsu will try to achieve this goal by incorporating M&A.

Moreover, Anritsu is considering M&A in 6G technology-related and 5G utilization fields. This will be on top to the planned M&As to strengthen its lineup of industrial measurement products.

Anrtsu plans to create a business portfolio so that return on equity will be stable at 10 percent. Of the ¥20 billion operating income in the final year of the plan, 25% will come from businesses other than the telecom and measurement business.

02 May 2024

 *This is an English translation of a Japanese article originally published in the May 1, 2024 issue of Dempa Shimbun Daily.