Finally, I will describe initiatives to strengthen profitability in the medium term.
During the 2Q financial results briefing, President Yamana expressed the awareness that it will be necessary to further raise the level of core business profitability. As a result, Konica Minolta has decided to bring forward the initiatives to pursue structural reforms both in Japan and overseas, to streamline operations by reorganizing our bases, and to strengthen our businesses. These initiatives were initially envisioned for the medium term, but now will be brought forward for implementation in the current fiscal year. We estimate that the related 4Q impact on profit and loss within Japan will be ¥1.0–1.5 billion, and for the coming 2018 fiscal year, about ¥2.0–3.0 billion. We envision a 4Q impact overseas of ¥3.0–3.5 billion. Since these are medium-term initiatives, we anticipate that their ultimate contribution will become apparent in the 2019 fiscal year and beyond. We plan to apply the profits from sale and leaseback activities conducted as part of our global corporate real estate (CRE) strategy as funding to help cover the structural reform expenses from these initiatives.
As the initiatives we implement in Japan and overseas are subject to discussion with unions, works councils, and other such organizations, we intend to explain the details during the results announcement at the end of the 2017 fiscal year.
During the 2Q financial results briefing, President Yamana expressed the awareness that it will be necessary to further raise the level of core business profitability. As a result, Konica Minolta has decided to bring forward the initiatives to pursue structural reforms both in Japan and overseas, to streamline operations by reorganizing our bases, and to strengthen our businesses. These initiatives were initially envisioned for the medium term, but now will be brought forward for implementation in the current fiscal year. We estimate that the related 4Q impact on profit and loss within Japan will be ¥1.0–1.5 billion, and for the coming 2018 fiscal year, about ¥2.0–3.0 billion. We envision a 4Q impact overseas of ¥3.0–3.5 billion. Since these are medium-term initiatives, we anticipate that their ultimate contribution will become apparent in the 2019 fiscal year and beyond. We plan to apply the profits from sale and leaseback activities conducted as part of our global corporate real estate (CRE) strategy as funding to help cover the structural reform expenses from these initiatives.
As the initiatives we implement in Japan and overseas are subject to discussion with unions, works councils, and other such organizations, we intend to explain the details during the results announcement at the end of the 2017 fiscal year.