Towards the establishment of business foundation to generate stable profit
I would like to thank you for your kind support.
The results for FY2017 was not good enough by just looking at the number, due to the downward revisions to the financial forecast.
The reasons are clear. J Trust Bank Indonesia recorded extra allowance for doubtful accounts and unrealized loss on the option part of Group Lease's convertible bond impacted. Although both hit in P/L, they don't affect cash flow since it is just a loss on accounting. Therefore, I am not concerned about it.
For FY2018, our goal is to introduce IFRS, to achieve the highest profit since the establishment and to be listed in the First Section of the Tokyo Stock Exchange.The business in Southeast Asia will be able to make a profit since there will be no impact of the goodwill amortization under IFRS and we will be able to carry out more M&A's. As a result, we will expand our retail finance business in Southeast Asia by acquiring banking licenses.
I would like to explain the target for FY2018. Domestic Financial Business (Japan) will grow steadily. Financial Business in South Korea is expected to make a profit from assets we built so far, although the pace of accumulation on loan amount will slow down due to a new regulation from financial authorities in South Korea.
For Financial Business in Southeast Asia, the restructuring is almost done and the banking business will be able to make a profit on its own. The cooperation with Group Lease in agricultural sector will lead to the growth of financing business which is expected to record an extra profit. We will try to do our best to achieve the highest profit since the establishment in FY2018.
We have overcome issues one by one and for the past 3 years and we were laying the groundwork for sustainable growth.
Your continued support will be highly appreciated.
Representative Director, Senior Managing Executive Officer, PR & IR division