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Message from the President and CEO

信太明

Thank you for your support. On Wednesday, July 12, 2017, AUN Consulting Inc. announced its financial results of fiscal year ending May 2017.I would like to give a brief update on these results.

During the current consolidated fiscal year (June 1, 2016 to May31, 2017), although personal consumption remained feeble, the Japanese economy saw a continued improvement in corporate earnings and employment resulting from the various “Abenomics” economic policies and maintained its gradual transition toward recovery. However, uncertainty has lingered around the corporate business environment in overseas economies due to the economic slowdown of emerging Asian countries, including China, problems caused by the withdrawal of the UK from the EU, the effect of the policies of the new administration in the USA on the world economy, and heightened geopolitical risk in the Middle East and East Asia.

With regard to the Japanese Internet advertising market, which is a principal area of business for the AUN Group, Internet advertising expenditure for 2016 was 1.31 trillion yen (a 13.0% increase over the previous year), caused by steady advertising for smartphones due to the penetration of social media services. Breaking this down, media costs alone exceeded 1 trillion yen for the first time ever (1.0378 trillion; a 12.9%increase over the previous year), and the shift toward Internet media is continuing (Dentsu Inc.: Advertising Expenditure in Japan, 2016).

Particularly with regard to the inbound tourism market, the shift in consumer behavior away from consumption of products toward consumption of services from 2016 among foreign tourists visiting Japan led to a declining trend in the total amount consumed by foreign tourists. However, the number of foreign tourists visiting Japan in 2016 was as high as 24.039 million (a 21.8% increase over the previous year), which was a record high (Japan National Tourist Organization: Inbound Visitor Numbers). Following economic growth in Asian countries, both the number of tourists visiting Japan and the demand for promotions aimed at foreigners by Japanese companies are expected to keep increasing.

Given this situation, the AUN Group’s top priority has been ensuring stability and expansion of profitability. AUN is working in the current fiscal year to expand its business by devoting its efforts to concentrating management resources on multilingual SEM services for Japanese companies, ensuring stable operations of its asset services, improving productivity at its overseas subsidiaries, and focusing on strengthening the organization through human resources development.

As a result of the aforementioned factors, this current consolidated fiscal year saw total sales of 1,915.231 millionyen (up 2.9% year-on-year), operating profit of 34.211 million yen (up 57.3% year-on-year), ordinary profit of 30.635 million yen (up 25.9% year-on-year), and net profit for the current year of 26.467 million yen attributable to parent company shareholders (up 28.1% year-on-year).

We look forward to your continued generous support.

AUN Consulting, Inc.
President & CEO
Akira Shida

正規代理店