Message from Top Manager

INNOTECH Corporation President & CEO:Toshihiko Ono

We are enforcing our measures to strengthen our R&D, securing human resources and to nurture our personnel for our mid-term and long-term growth.

Our Business Environment and Financial Results in FY2022

In FY2022, the economy of Japan showed some signs of improvement as the social and economic activities were getting normalized with the loosening of COVID-19-related restrictive measures and the consumer spending coming back. However, the outlook remains still unclear with soaring prices of resources and commodities, prolonged tight supply of parts and components, export control by the United States against China, and so on.

As for INNOTECH Group financial results of the current term, increase of the number of staff to support expansion of investment on R&D and business affected the revenue while sales from the EDA software business and IT ACCESS cloud settlement system remained solid.

As a result, our sales of FY2022 was 38 billion 629 million yen (YoY +3.7%), our operating profit was 2 billion 319 million yen (YoY -10.3%), our ordinary profit was 2 billion 480 million yen (YoY -16.9%), and our profit attributable to owner of parent was 1 billion 666 million yen (YoY -24.1%).

FY2023 Financial Results Outlook

In FY2023, it is expected that consumer spending and facility investment which were suppressed during the Covid-19 pandemic will recover. On the other hand, we cannot be optimistic as there is a risk of recession due to many factors, such as drastic increases of policy interest rates in the U.S. and Europe, the effects of tightening of US export control against China, the situation in Ukraine, continued tight supply of parts and components, and soaring price of resources.

While the shortage of parts and components are expected to continue, INNOTECH Group believes that the Semiconductor Design-related Business and the System Service Business will remain generally strong. Also, for the Test Solution Business, demands for memory testers are supposed to increase along with the recovery of the semiconductor market from the end of FY2023 and expansion of the peripheral solution businesses other than memory products will be the focus of our effort, aiming to increase its revenue and profit.

We appreciate our shareholders’ continued support and cooperation. Thank you very much.

June, 2023

President and Representative DirectorNobuyuki Otsuka