Rohde & Schwarz closed its fiscal year with a stable net revenue and a record-
breaking order intake. Thanks to its wireless communications and security expertise,
the technology company has successfully entered important future markets. Business
and society are quickly becoming progressively networked, and security requirements
are increasing accordingly. Already today, Rohde & Schwarz offers solutions for these
challenges.

In the 2016/2017 fiscal year (July to June), Rohde & Schwarz once again surpassed
the two billion euro mark for incoming orders. At EUR 2.06 billion, order intake was 14
percent higher than in the previous year, while net revenue remained stable at EUR
1.91 billion. The workforce continued to grow, from 10 000 in the previous year to
around 10 500 as of June 30, 2017. All business fields contributed to the success of
the fiscal year. Growth was primarily the result of the digital transformation and the
progressive networking of many areas of professional and daily life.

Test and measurement benefits from 5G and networked cars

With its test and measurement solutions for wireless applications, the company plays
an active role in the development of the Internet of Things (IoT) and fifth generation
mobile communications (5G). In the past fiscal year, the market leader in wireless
communications T&M benefited from the increasing investments in 5G research and
development.

Rohde & Schwarz has performed especially well in the automotive market. Cars are
steadily becoming technology platforms in which various electrical and electronic
components have to interact in extremely tight spaces. Wireless technologies such as
automotive radar and connected car applications are also making their way into cars.
All of which increases T&M requirements. With its solutions, Rohde & Schwarz has
succeeded in establishing itself in the automotive industry. To expand this position
further, the company is developing a completely new portfolio of automotive radar test
solutions.

Major orders and expansion in secure communications

In secure communications, the company has achieved another important milestone.
In June 2017, it received the order from the German Federal Ministry of Defense to
equip 50 command vehicles with the joint radio system of the German armed forces
(SVFuA). SVFuA is the first pillar of the mobile tactical communications (MoTaKo)
program for digitising tactical communications within the German armed forces.

Additionally, Rohde & Schwarz has expanded this business field by acquiring a stake in
LANCOM Systems GmbH. LANCOM Systems GmbH is the leading German
manufacturer of network solutions for business customers and the public sector. The
manufacturer offers professional users secure, reliable infrastructure solutions for all
local and intersite networks (LAN, WLAN, VPN). As a Germany company, LANCOM
Systems also offers products certified by the German Federal Office for Information
Security (BSI). These products are used to secure highly sensitive networks and
critical infrastructures.

In civilian air traffic control, the migration to IP-based communications is progressing
rapidly. Very early on, Rohde & Schwarz integrated voice over IP (VoIP) into its
communications systems. In this past fiscal year, the company won an order from the
UK air traffic control authority (NATS) for its fully IP-based voice communications
system.

Body scanners in operation around the world

Rohde & Schwarz body scanners are also helping to ensure air traffic safety. The
rollout of the scanners at German and international airports continues. Today they are
used for security checks at airports in Munich, Frankfurt, Hamburg, Budapest, Lyon
and many more.

Greater involvement in cybersecurity and cyber defence

Rohde & Schwarz has successfully expanded its portfolio of cybersecurity and cyber
defence solutions to combat the growing threats posed by cybercriminals. Rohde &
Schwarz Cybersecurity has quickly become a major German player in the field of IT
security. With the acquisition of web security specialist DenyAll in January 2017,
Rohde & Schwarz expanded both its portfolio and its presence in the European
market.

DVB-T2 and cloud solutions drive broadcast and media

Broadcast and media experienced a special highlight in the past fiscal year. In March
2017, in just one night, digital terrestrial television (DVB-T) in Germany was
successfully transitioned to the new DVB-T2 standard. Rohde & Schwarz was a part of
the biggest transition undertaken in German broadcasting history, providing high-
power and medium-power transmitters plus encoding and multiplexing solutions. This
equipment has since helped to ensure that thousands of households can receive HD
programs via antenna.

Rohde & Schwarz has also continued to develop its file-based media solutions
portfolio. The company even offers some of its products as cloud-based solutions,
which not only meets the changing market requirements but also opens up new
business modes.

Well-positioned for a secure, networked future

The next few years, if not decades, will be characterised by an increasingly networked
world and the associated need for more security. Not only has Rohde & Schwarz long
supported this development with its solutions, but the central topics of network and
security are also two of the technology group’s core competencies. Consequently,
Rohde & Schwarz is well-positioned for the future in all its markets.