Our Business Environment and Financial Results in FY2023

The outlook of the Japanese economy in FY2023 (ending in March 2024) remained unclear as the yen depreciated and the inflation continued. Geopolitical risks increased due to the situations in Ukraine and in the middle east, the US-China trade war, recession in China and slowdown of the US economy, while the employment and the income improved and consumer spending and facility investment were slowly coming back domestically in Japan.

As for INNOTECH Group financial results in FY2023, the System Service Business remained solid while the Semiconductor Design-related Business did not reach the results YoY and the Test Solution Business did not recover.

As a result, our sales of FY2023 was 41 billion 358 million yen (YoY +7.1%), our operating profit was 2 billion 474 million yen (YoY +6.7%), our ordinary profit was 2 billion 880 million yen (YoY +16.1%), and our profit attributable to owner of parent was 1 billion 477 million yen (YoY -11.3%).

FY2024 Financial Results Outlook

In FY2024（ending March 2025）, the economy in Japan is expected to recover gradually as the income and facility investment further increase. On the other hand, we cannot stay completely optimistic since the impact on the economy is unknown as the labor cost soars, the resource price remains high, and the Japanese government ends its measures to counter inflation.

INNOTECH Group will keep working to expand its sales at each business unit; the System Service Business Unit will support large demands for the automobile and social infrastructure areas; the Semiconductor Design-related Business Unit will cultivate new customer base; As for the Test Solution Business, it may take some more time for the demand to recover for testers for memory products. Also, INNOTECH will further enhance its profitability and growth potential under the newly-starting mid-term management plan.

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

June, 2024

President and Representative DirectorNobuyuki Otsuka