During the consolidated fiscal year under review (June 1, 2018, to May 31, 2019), the Japanese economy shifted toward moderate recovery against a background of improved corporate earnings; however, the strength of individual consumption remains inadequate, and optimism about economic recovery is still unrealistic. On the other hand, in regard to overseas economies, factors such as the impact on the global economy of deteriorating US-China trade friction and the UK's withdrawal from the EU and the increase in geopolitical risk means that the corporate environment remains uncertain.
Given this situation, the AUN Group’s top priority has been ensuring stability and expansion of profitability, and it has devoted its efforts to further expanding earnings in the overseas and multilingual fields, developing business and services that will serve as the pillar of future earnings, and strengthening organizational systems and human resources training.
As a result, the Group was successful in achieving certain results, such as expanding sales and earnings at its overseas companies and operating its asset business profitably.
On the other hand, a slowdown in advertising placements following the merger of major clients and the delay in hiring plans caused by the intensified competition for acquisition of talented human resources in Japan resulted overall in some lingering issues and a decline in revenue compared to the previous consolidated fiscal year.
As a result of the above factors, performance in this consolidated fiscal year under review saw a total turnover of 1 billion 879.390 million yen (down 0.9% compared to the same period of the previous year), with an operating profit of 343 thousand yen (down 96.7% compared to the same period of the previous year), ordinary profit of 25.82 million yen (up 264.5% compared to the same period of the previous year), and a net profit of 22.523 million yen attributable to parent company shareholders (net profit attributable to parent company shareholders was 1.011 million yen in the same period of the previous year).
1. Marketing business
In its marketing business, the Group provides various services supporting corporate marketing activities, including SEO (search engine optimization), PPC (pay per click, or search-linked advertising), social media advertising, and smartphone advertising to Japanese and foreign companies in Japanese and multiple other languages.
Backed by brisk demand in Asia for travel to Japan, in the multilingual (non-Japanese language) promotions area, which is a growth area, the Group has devoted its efforts to new business areas such as participation in government and administrative-related tender projects and strengthening sales promotions.
As a result, acquisition of new business partners, mainly in multilingual services, remained steady, although this was not enough to cover the impact of temporary suspension of advertising by major clients and the termination of contracts with some clients for domestic Japanese language PPC services, which caused sales and earnings to dip compared to the previous year.
The Group will continue to invest in the recruitment and education of global human resources in order to meet overseas and multilingual marketing demand, which is expected to grow further in the future.
As a result of the above, turnover for these services was 1 billion 776.049 million yen (down 1.0% compared to the same period of the previous year), with a segment profit of 158.616 million yen (down 5.2% compared to the same period of the previous year).
2. Asset services
In its asset services, the AUN Group has been leveraging the knowledge accumulated through its experience in overseas expansion to provide infrastructure such as offices for firms and condominiums for overseas employees, as well as selling and brokering real estate overseas.
In the fiscal year under review, the sale of real estate held for sale by a consolidated subsidiary in the Philippines and the resale of client-owned properties contributed to sales growth, achieving profitability.
In order to construct a system capable of ensuring stable future earnings, the AUN Group will continue to be proactive in undertaking promotional activities, developing its sales agencies, uncovering new affiliated developers, and other activities, growing this into a business that contributes to the Group's earnings.
As a result of the above, turnover for these services was 103.341 million yen (up 1.0% compared to the same period of the previous year), with a segment profit of 7.226 million yen (segment loss was 302 thousand yen for the same period of the previous year).