In fiscal 2016, the first year of medium-term management plan, we got off to a good start, achieving results in excess of our profit targets set at the beginning of the year.
In the next fiscal year, we forecast an increase in sales and a decrease in profit on a consolidated basis. This is mainly due to our tighter control of business volume in light of market conditions for new condominium buildings in Japan’s three major metropolitan areas, resulting in lower sales and lower profit in our real estate development and sales business. We will work to achieve a rebound for our business in new condominium buildings by the fiscal year ending March 31, 2019. Exploiting our superior position, which enables us to spread our risk across the nation, we are steadily procuring land in core local cities. Meanwhile, we forecast year-on-year increases in sales and profit for our real estate management business, the cornerstone of our income, and our real estate brokerage business, which is earmarked for future growth.
The Group will work to deliver sustained growth by combining and maximizing its various strengths. At the same time, all executives and employees will stand united to achieve the targets of our medium-term management plan.
We look forward to the continued support and understanding of all shareholders.