Our Business Environment and Financial Results in FY2024

In FY2024 (ending March 2025), the Japanese economy came back slowly as the consumer spending increased due to improvements of employment and income levels and the increase of facility investments as the corporate financial results were generally strong. However, its future is unclear as there are concerns for constant inflation and dramatic exchange rate fluctuations, geopolitical risks, the delayed recovery of Chinese economy, and so on.

Under such circumstances, as far as INNOTECH Group results are concerned, the Semiconductor Design-related business and the System Service business remained stably strong while Test Solution business was slow.

As a result, our sales of FY2024 was 41 billion 977 million yen (YoY +1.5%), our operating profit was 1 billion 887 million yen (YoY -23.7%), our ordinary profit was 1 billion 754 million yen (YoY -39.1%), and our profit attributable to owner of parent was 1 billion 200 million yen (YoY -18.8%).

FY2025 Financial Results Outlook

In FY2025 (ending March 2026), the economy is expected to pick up moderately due to further improvements in income levels with salary raises and in facility investments to pursue digitalization and decarbonization. Still, it is hard to stay optimistic due to such elements as the continued inflation and high resource prices, geo political risks, the direction of U.S. trade policy and so on.

As far as INNOTECH Group business is concerned, for Test Solution business, it is expected that the demands for testers of memory products will take time to recover but sales of new products targeted for overseas market will expand; the System Service business is estimated to remain strong as the demands for social infrastructure and defense-related products will stay high and business of products for industrial machinery will recover; as for the Semiconductor Design-related business, it will strengthen business relationships with its existing customers, focus on proposals to add values, such as system co-verification solutions and design consignment, and strive to increase the revenue and the profit.

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

June, 2025

President and Representative DirectorNobuyuki Otsuka