Prometech Group, Inc.(Head office: Bunkyo-ku, Tokyo; Chairman and Group CEO: FUJISAWA Toshimitsu; hereinafter "Prometech") announced that on September 29, 2023, it invested in RICOS Corporation(Head office: Chiyoda-ku, Tokyo; Representative Director, CEO: Yuu Ihara; hereinafter "RICOS"), a company that uses AI and simulation technology to improve the efficiency and add value to product design.

Investment Background

Public interest has increased in solving social issues through high-speed computer simulations in areas such as increasingly serious energy problems, environmental destruction, and disaster prevention. With RICOS's proprietary technology that uses AI to predict physical phenomena, the flow structures can be well predicted much faster than with ordinary simulations (up to 100 times faster). Prometech Group invested in RICOS because we believe that the combination of the two companies, both founded on the seeds of research results at the University of Tokyo, will enable rapid social implementation of research results.

About RICOS (refer to news release on RICOS website)

RICOS is a tech company that optimizes the manufacturing process by combining CAE (Computer Aided Engineering)^*1 with AI and high-performance computing technologies.

In the product design process at manufacturing sites, CAE is often used to estimate various physics such as fluid flow and heat conduction with a computational model. However, one challenge is the extremely long computation time required when simulating for high accuracy. However, to predict accurate field requires huge computation time and computer resource, this is issue.

Therefore, in 2020, RICOS developed and patented IsoGCN, an algorithm that can predict simulation results at high speed by combining CAE and AI. Then in the spring of 2022, RICOS launched "RICOS Lightning", AI-CAE software using the IsoGCN algorithm, which is used as a simulation tool for fluid and thermal fluids. Currently, RICOS Lightning is provided to several OEMs and Tier1 suppliers, including Mazda Motor Corporation.

The improved IsoGCN algorithm is being developed that can represent a wider range of phenomena with higher accuracy.

"Lightning" is now available and continuous updates are planned.

Furthermore, RICOS Generative CAE system which is an automatic deformation and optimization tool for product geometry, is under development with a target launch of spring 2024.Collaboration work has already been started with partners.: e.g. Daikure Corporation, a developer, manufacturer, and distributor of civil engineering and construction materials. RICOS Generative CAE system is linked to Truck^*2, RICOS CAD kernel OSS, and RICOS are developing a system to optimize the selection, placement, and shape of structures and members with the aim of improving the performance and reducing the cost of existing products.

Through RICOS products, RICOS aims to realize a world where scientific computation is effectively used in every manufacturing process, and ultimately, optimal performance can be instantly designed.

*1) CAE (Computer Aided Engineering) is a design method that performs product design and simulation in a computer for higher quality product development. It is used in many design fields because it eliminates some of the costly and time-consuming prototyping and testing of products.

*2) Truck is CAD kernel software using Rust language developed by RICOS (GitHub: https://github.com/ricosjp/truck).

Message from IHARA Yuu (RICOS Co. Ltd. Representative Director, CEO)

Thank you very much for your investment. We are very pleased to have Prometech, which has a long track record in the CAD/CAE industry where world-class companies are engaged in friendly competition, invest in our company. RICOS have received advice from Prometech from time to time and look forward to working closely with them to continue developing and selling solutions that will change the world of manufacturing and contribute to the advancement of our customers' operations.

Message from FUJISAWA Toshimitsu (Prometech Group, Inc. Founder, Chairman and Group CEO)

We are very pleased to have the opportunity to invest in RICOS, a company that promotes world-class research and development in the application of AI and machine learning in the field of engineering and simulation. We have confidence that RICOS's technology is an indispensable fundamental technology for the next generation manufacturing and will greatly contribute to strengthening the international competitiveness of manufacturing industry in Japan. Prometech Group will provide maximum support for RICOS's business growth and will also work diligently to develop solutions that integrate the company's various CAE products.