We would like to express our sincere gratitude to our shareholders and investors for your constant support. In addition, we would like to report the performance results and initiatives of the CRESCO Group for the interim period of FY2022 (from April 1, 2022 to September 30, 2022).
In line with the 10-year Management Vision "CRESCO Group Ambition 2030" and the three Medium-term Management Plans (FY2021 to FY2023, FY2024 to FY2026, FY2027 to FY2030), the CRESCO Group is aiming to be a corporate group under the guiding principle of "We will realize a stimulating future through the best technology and partnerships."
Through the execution of our “Basic Strategy” in order to promote our core business (IT services) and “Key Strategy” to create new business pillars centered on our new business (digital solutions), in FY2022, the turning-point year in the “Medium-Term Management Plan 2023 (FY2021 to FY2023),” which is the first step for the realization of the Management Vision, we developed our business by aiming to achieve business performance targets, as well as by striving to establish an agile management foundation and practice people-centered management and further improving corporate value.
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Issues in FY2022 |
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While progress has been made toward normalization from the COVID-19 pandemic, there are concerns in the business environment regarding the risk of downward pressure on overseas economies caused by the Russia/Ukraine conflict and the rapid depreciation of the yen. Although actions such as carefully selecting, postponing, or downscaling IT investment were observed with some of the CRESCO Group’s customers, demand for IT investment itself remained robust, and orders remained steady.
However, in fund management, an increase in the US policy interest rate as a countermeasure to inflation and concerns that the country may enter a recession have caused stock prices to decline in the US stock markets, and as a result, we recorded a valuation loss on derivatives (non-operating expenses) in relation to financial instruments held by the Company. With respect to the performance for the interim period, sales increased while profit decreased.
The business environment for the current fiscal year does not allow for an optimistic outlook as downward risks for the economy, including the emergence of new variant strains of COVID-19, the weakening of the yen and uncertainty over the Russia/Ukraine conflict, can still not be eliminated. Nevertheless, economic activities based on the “with corona” and “post-corona” periods continue to be vigorous, and it seems unlikely that anything will stop the trend of digital transformation (DX). The CRESCO Group has judged that “IT investment demand aimed at improving productivity through renewal of existing systems and digital transformation will remain steady.”
Half a year has passed since our transition to the new structure, and we are beginning to sense the effects of the “change.” With your ongoing support, we will continue to execute the medium-term management plan, working to achieve further growth and increase in corporate value by providing IT services and digital solutions offering novelty and convenience that will lead the way for customers’ “digital transformation.”
Nov, 2022
Hiroyuki Nemoto, Chairman & CEO
Hiroshi Tominaga, President
