During the three months under review, the global economy generally remained firm, as the driving force of domestic demand increased in each geographical area, although political and policy uncertainty grew, including increasing protectionism in the United States and political risks in Europe. In Western countries, capital expenditure remained solid owing to the strength of fiscal policy and improved corporate earnings. Consumer spending continued to recover with favorable income conditions, and moderate economic growth continued. In Asia, economies continued to expand thanks to the contribution of higher consumer spending linked to rising income levels in emerging countries, although the downward risk of the economy derived from trade friction between China and the United State was a concern.
In Japan, the economy continued to recover, reflecting further improvements in employment and income conditions, in addition to stable corporate earnings.
Under this environment, based on the “Medium-Term Management Plan 2021” of which term covers five years from the fiscal year ended March 31, 2017, to realize the improvements of “Earning power through operations” and “Value in capital markets,” we are working on the following strategies: 1) Promoting global branding, 2) Focusing on priority overseas locations, 3) Laying stronger foundations for our domestic profit base, 4) Establishing a second pillar that generates revenue and profit, 5) Developing and strengthening human resources for global management.
- *Based on IFRS