I would first like to express my appreciation to all our stakeholders for your ongoing support.
The existing business portfolio posted an operating loss for the first time in six years in fiscal 2016 on a consolidated basis. This was because, although the fashion brands business recorded an operating profit, the construction consultant business experienced a heavy operating loss due to delays in the completion of construction. At the same time, on a non-consolidated basis, TriIs posted an operating profit. In January 2016, we established a subsidiary in the U.S. to operate an investment business, which was launched as a new business. Accordingly, beginning in this fiscal year our business portfolio consists of three businesses?fashion brands, construction consultant, and real estate and securities investment. The U.S. subsidiary is our second overseas base, following the one established in Taiwan which is involved in the fashion brands business. Fiscal 2015 was the 21st year since the TriIs Group was founded, and we succeeded in setting record highs for profits, dating back to our foundation, on both consolidated and non-consolidated bases. However, as just mentioned, last fiscal year we posted heavy consolidated losses for the first time in six years, as a very disappointing result. We plan to continue issuing dividends, however, and are very delighted that we have been able to pay dividends for the sixth consecutive year.
Turning to the global economy, many events made us realize that the political and economic changes that we have feared over the past few years are becoming a reality. The U.K. voted to leave the European Union (EU) in a national referendum, and Donald Trump won the U.S. presidential election in a shocking turn of events. In Italy, Prime Minister Matteo Renzi resigned after a referendum to change the constitution was defeated. These changes can be seen in part as the victory of populism among the middle class attributable to widening economic disparities. Assuming this is the case, the limits of capitalism have been revealed now that it has lost its frontier, and we now find ourselves in an era in which the common sense of the past has become useless.
Moreover, Abenomics, which is intended to rebuild the last two decades, is the implementation of measures based on past common sense, and can do no more than maintain the status quo. At the same time, the Japanese economy is now approaching the era of demographic burden. Even though the Bank of Japan has carried out marginal monetary easing and introduced negative rates, it is apparent that we cannot expect the kind of steady economic growth of the past in this economy without frontiers. In this sense, I believe it is important that we work efficiently to secure profits in the current economy.
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