I would first like to express my appreciation to all our stakeholders for your ongoing support.
The existing business portfolio posted an operating loss in fiscal 2017 on a consolidated basis. This was because, although the investment business we are engaged in the U.S. posted operating profits, the fashion brands and the construction consultant businesses posted operating loss. At the same time, on a non-consolidated basis, TriIs posted an operating profit. Meanwhile, we liquidated real estates held by the construction consultant business by turning them into profit-making properties and salable, and it resulted in gain on sales of 200 million yen. Therefore, we recorded net profit of 100 million yen on a consolidated basis.
Fiscal 2017 marked 10 years after the change of the company name to TriIs and the change of the form of our organization to a pure holding company. To extend our gratitude to our stakeholders for the support to us, we resolved to pay a commemorative dividend of 15 yen. We are very delighted that we have been able to pay dividends for the seventh consecutive year thanks to the support. In fiscal 2018, we will make every effort in business operations to achieve operating profitability in the three businesses of fashion brands, construction consultant, and real estate and securities.
Looking at the macro-economic environment, it is a more complex and unpredictable era with globalization of the economy, IT-led acceleration of information flow, and transition to the population onus period seen on a global scale. As we repeatedly mentioned in the last few years, we believe the limits of a capitalism that has lost its “frontier” have become exposed, and we now find ourselves in an era in which the conventional wisdom of the past can no longer be depended on to guide our judgments in any way.
I believe that the Group has already completed its response to the new era. This means that with all stakeholders—which includes of course local communities and the global environment—we intend to share our philosophy of conducting corporate activities with moderation and pursuing corporate value that is unique in the world. Of course we will continue to innovate and negate the conventional wisdom while also establishing a cost advantage through innovation.
As I have stated elsewhere, there has been no change to our policy of becoming a corporate group unaffected by fluctuating business conditions, with shining No. 1 companies in their respective areas, using intelligence though they are small.
Raising corporate value is significant for all stakeholders of the TriIs Group. All business decisions are made so that they are economically rational with respect to raising corporate value. I would like to again thank all stakeholders of the TriIs Group for your continuing encouragement and support.
Representative Director and CEO