We thank you very much to our shareholders for your continuous support.

To those who suffered various damages from the earthquake and tsunami in March, our thoughts and prayers are with you.

In the fiscal year of 2010, the economy in Japan slowly recovered as companies became profitable and actively started their facility investment again. In the cutting-edge electronics industry in Japan, as the so-called eco system was reviewed and points offered per products were reduced by half from December 2010, the last minute demands for digital terrestrial TVs from those who wanted to take advantage on the previous eco point system sky rocketed and drove the peripheral markets for relevant digital consumer electronics products. Also, as the number of smartphone users grew, semiconductor manufacturers resumed their active facility investment.

In such business environment, as for Innotech Group Semiconductor Design Business, EDA software business from US Cadence Design Systems remained solid and stable. As for semiconductor tester business, its profitability significantly improved as the facility investment became strong. Sales of Electronic Component Business increased due to more licensing business coming in for embedded software used for digital consumer products. As a result, the consolidated financial results of Innotech Group for FY2010 were;
Sales: 25.8 82 billion yen (YoY +5.7%)
Operating Income: 1 billion 455 million yen (YoY +137.1%)
Ordinary Income: 1 billion 532 million yen (YoY +106.8%)
Net Income: 769 million yen (YoY +350.8%)
These results were in line with our original expectations.

This year, in the cutting-edge electronics industry, it seems that the demands are strong regardless of the aftermath of the earthquake and tsunami in March. Innotech Group will keep enhancing its highly value-added engineering services for our further growth, and will keep striving to meet our shareholders expectations.
Thank you very much for your continuous guidance and support.