We would like to express our sincere gratitude to our shareholders and investors for your continued and exceptional support. The CRESCO Group has finalized the financial results for the second quarter of FY2021 (from April 1, 2021 to September 30, 2021).

Business Policy and Issues for FY2021

FY2021 is the first fiscal year in the “Medium-Term Management Plan 2023 (FY2021 to FY2023),” which is the first step of the 10-year Management Vision toward FY2030. Through the execution of our “Basic Strategy” in order to further strengthen our core business field (IT services) and “Key Strategy” to create new business pillars centered on the digital solutions business, we will, in addition to achieving business performance targets, develop our business by striving to establish an agile management foundation and practice people-centered management and further improving corporate value. Based on “CRESCO Group Ambition 2030” and the Medium-term Management Plan, the CRESCO Group aims to be a corporate group under the guiding principle of “We will realize a stimulating future through the best technology and partnerships” toward 2030.

Issues in FY2021
  • Acquiring new customers and strengthening relationships with customers
  • Expanding the digital solutions business and conducting research and development of new technologies
  • Promotion of M&A and alliance and reinforcement of Group companies management
  • Hiring of human resources and expansion of development environment
  • Promotion of DX and realization of flexible management
  • Promotion of health management
  • Promotion of work style reform and creation of a healthy work environment
  • Enhancement of quality
  • Pursuit of productivity
  • Securing human resources engaged in development and strengthening structures
  • Initiatives to promote diversity
  • Strengthening corporate governance
  • Business portfolio optimization and flexible organizational management

 

［Click for details regarding these issues］

Business Environment and Performance for This Interim Period

In the business environment for this interim period, business sentiment improved across a wide range of industries and business sectors despite the ongoing COVID-19 pandemic, and the execution of corporate IT strategies accelerated, centered around digital transformation (DX). In addition, orders were boosted due to the rebound from the curb on IT investment in FY2020, and both sales and profit increased for this interim period.
The CRESCO Group focused on reviewing its customer portfolio and business structure in response to changes in the business environment, securing orders mainly from existing customers and developing new businesses and services incorporating advanced technology (AI, the cloud, etc.), and, at the same time, continued to implement aggressive initiatives, such as promoting DX within the Group (strengthening the teleworking system, utilizing online communication tools and strengthening digital marketing) and optimizing the office spaces. In addition, we made OEC Ltd. a consolidated subsidiary on July 1, 2021, and are working to expand our business related to embedded software for various products for which further demand is anticipated in the future.

Outlook for FY2021

With regard to the outlook for the business environment for FY2021, although the situation regarding efforts to bring the COVID-19 pandemic under control remains serious and it is undeniable that some aspects will depend on the progress of vaccinations and concerns over the outbreak of a sixth wave of infections, we have judged that the impact will be limited.
Due to various factors, including increased vaccinations and the number of infections falling after peaking in Japan and overseas, the state of emergency and strict infection control measures were completely lifted at the end of September. As restrictions on activities were relaxed, the trend toward normalization of economic activities has been gaining momentum. We also anticipate a bright outlook in IT investment trends, reflecting the easing of restrictions on economic activities and expectations regarding business sentiment. Against the backdrop of increasing needs in response to the new normal, the creation of new business values, the enhancement of competitiveness and the digital transformation that creates innovation (technological innovation) are expected to further accelerate in the future.
The CRESCO Group works to proactively capture our customers’ needs, which are becoming increasingly sophisticated, diverse and complex, and is determined to realize innovation to secure our competitive edge and contribute to the development of society. In addition, by utilizing our core technologies and experience that we have acquired over many years and actively collaborating within the Group and forming business alliances with other companies, we are able to provide new, convenient IT services and digital solutions that lead our customers’ “digital transformation.”

Nov, 2021
Hiroyuki Nemoto, President