Thank you for your support. On Wednesday, October 11, 2017, AUN Consulting Inc. announced its financial results for the first quarter of the fiscal year ending May 2018. I would like to give a brief update on these results.
During the consolidated first quarter under review (June 1, 2017, to August 31, 2017), the Japanese economy has seen a trend toward moderate recovery against a background of improved corporate earnings and a stronger employment and income environment. In overseas economies, however, factors such as the economic slowdown of emerging Asian countries, including China, the impact of the new US administration's policies on the global economy, and increased geopolitical risk in the Middle East and East Asia have ensured that the business environment remains uncertain.
Given this situation, the AUN Group’s top priority has been ensuring stability and expansion of profitability. In the consolidated first quarter period under review, the Group also devoted its efforts to strengthening overseas and multilingual marketing support, ensuring stable operations of its asset services, and focusing on strengthening the organization through human resources development, in order to expand business. With particular regard to "strengthening overseas and multilingual marketing support" within marketing services, given the expanding inbound market, the Group has been successful in capturing a wide range of demand by providing its expertise in multilingual marketing and high value-added services utilizing its network of overseas affiliates.
In addition, in order to achieve sustainable growth and improve corporate value over the medium to long term, during this consolidated cumulative first quarter, the AUN Group has been investing in human resources by hiring executive personnel and conducting group training for executive candidates and managers of its Japanese and all its overseas subsidiaries.
As a result of the above factors, performance in this consolidated cumulative first quarter saw a total turnover of 464.336 million yen (down 1.7% year on year), with operating loss of 10.251 million yen (compared to operating profit of 4.825 million yen in the same period of the previous year), ordinary loss of 5.281 million yen (compared to ordinary loss of 6.747 million yen in the same period of the previous year), and quarterly net loss of 7.635 million yen attributable to parent company shareholders (compared to quarterly net loss of 7.374 million yen attributable to parent company shareholders in the same period of the previous year).
1. Marketing services
In the Group’s marketing services, sales and profits in the domain of multilingual (non-Japanese language) promotions—a growing field—remained steady due to the background of vigorous Asian-region demand for Japanese travel. By coordinating the management resources (people and information) of the company and overseas subsidiaries and utilizing these to mutual effect, the Group has achieved provision of services in accordance with the different commercial practices of each country and the different promotional methods for each overseas site, thus contributing to a higher rate of orders received and higher rate of profit.
The Group will continue to engage in recruitment and education of global human resources to respond to overseas and multilingual marketing demand, which is expected to keep expanding in future.
As a result of the above, turnover for these services was 459.444 million yen (down 0.1% year-on-year), with a segment profit of 41.837 million yen (up 0.6% over the same period of the previous fiscal year).
2. Asset services
In its asset services, the AUN Group has been providing infrastructure such as offices for companies and condominiums for overseas employees as part of its support for overseas expansion of Japanese companies in the Philippines, where high economic growth continues even compared to other ASEAN member nations. In Vietnam, which is also enjoying ongoing economic growth, the Group is continuing its efforts aimed at long-term growth, such as starting up real estate brokerage services.
In order to further expand business in the future, during the current consolidated fiscal year the AUN Group has devoting its efforts to promotional activities, such as commencing preview tours via VR (virtual reality) and holding individual consulting meetings and seminars. Aside from this, continuing proactive activities such as hiring new personnel, expanding the scale of the organization, and acquiring new partner developers have resulted in some preliminary expenses.
As a result of the above, turnover for these services was 4.891 million yen (down 61.2% year-on-year), with a segment loss of 12.898 million yen (compared to segment profit of 3.045 million yen in the same period of the previous fiscal year).
We look forward to your continued generous support.