I am Nishimura, CEO of Daiwabo Holdings. I'd like to explain about the financial results for the second quarter of the fiscal year ending March 2022. I'd like to first update you on the second quarter results, then explain the outlook for the full year. This is the overview of our company. Daiwabo Holdings is a group of companies with three businesses of IT infrastructure distribution business, fiber business, and industrial machinery business. Sales of Daiwabo Information System, a trading company specializing in IT-related devices, accounts for more than 90% of our sales and our sector category at the Tokyo Stock Exchange is wholesale. This is a slide on our group management structure. We performed a major review of our structure last April.
By making the responsibilities and authorities of each company clearer, the three companies of Daiwabo Information System, Daiwabo Company, and O-M are facilitating prompt strategic decisions with strong business execution as the core of each of the businesses. Daiwabo Holdings is strengthening its supervisory function. For example, by formulating group strategies from a broader perspective. This is the internal audit structure of the group. We increased the number of outside directors by two at the general shareholders meeting held in June this year. We now have three inside border directors and four outside directors and are enhancing our governance structure. Mr. Tatsumi, Managing Director, and I, Nishimura, are also audit and supervisory board members of the three operating subsidiaries. Audit division and business divisions are cooperating amongst the group to further enhance corporate governance.
Now, I'd like to update you on the second quarter results for the fiscal year ending March 2022. In addition to the backlash from a large demand in 2019 and 2020, there were uncertainties in the market, and as a result, both sales and profits declined. However, as a first half, we were able to achieve the third highest profit level in our history. I will explain about each business later. This slide shows the consolidated net sales trend. The first half net sales were JPY 350.6 billion. Comparing based on the conventional standard, excluding the impact of the application of the revenue recognition standard, it is a decline by 9.6% year-on-year. If we compare based on the new standard, it is a decline by 10.6%. This shows the trend of operating profits. The first half was JPY 9.8 billion, a 9.6% decline year-on-year.
This is the third highest record in the first half, following last year and the year before with special demand. Operating profit margin was 2.8%. I'd like to explain about the impact of the accounting standard for revenue recognition, which was applied from this fiscal year. There is a big impact on how we post sales for maintenance and warranty services and recurring revenue of software in IT infrastructure distribution business. As these are considered agent transactions in accounting, the way the revenue is recognized changed. To be specific, we have been posting the total amount of sales before, but now we are to post the net amount of sales after deducting the procurement costs. With this change, net sales in the first half declined by JPY 33.1 billion.
If we compare based on the conventional accounting standard, it is a drop by 9.6% year-on-year from JPY 424.5 billion to JPY 383.8 billion. The impact on operating profit is small and operating profit margin improved by 0.2%. I would now like to supplement about transaction volume in IT infrastructure distribution business. Net sales in the conventional accounting standard are important indicators since they show the size of the transactions. As such, we will continue to utilize this concept by using the word transaction volume to replace the conventional net sales. From this fiscal year onwards, net sales means subtracting the amount impacted by the accounting standard for revenue recognition from transaction volume. This is the overview of the consolidated financial results. Ordinary profit was JPY 9,883,000,000, a decrease by JPY 1,168,000,000, or 10.6% year-on-year. Net profit was JPY 7,015,000,000, a decrease by JPY 1,788,000,000, or 20.3%.
It is a decrease in both sales and profits, but it is the third highest profit level for the first half. EPS was JPY 73.36. Total assets decreased by JPY 62,055,000,000 versus the end of last fiscal year to JPY 321,702,000,000 due to a decrease in accounts receivables and others. Net assets were JPY 128,548,000,000, a decrease of JPY 773 million due to an increase in treasury stock. Capital equity ratio was 39.6%, an increase of 6.2% compared to the end of the last fiscal year. This is the performance by segment for the first half. Accounting standard for revenue recognition was applied to IT infrastructure distribution business. This is the breakdown of net sales and operating profit by segment. The weight of IT infrastructure distribution business accounts for approximately 90%. Let me explain each segment, starting with IT infrastructure distribution business.
Net sales decreased by 18.5% year-on-year, but if we apply the conventional accounting standard and compare the transaction volume, it is a decrease by 10%. In the corporate market, small and medium-sized companies showed a tendency to continue to control IT spending, but spending to build cloud environment and for subscription services increased. By sector, we see a demand recovery trend in manufacturing and medical-related sectors, but service sector and others were still slow, and our sales, mainly our PCs, were stagnant. In the education market also, our sales declined compared to the last year when we had terminal shipments due to GIGA School Concept .
In consumer market, although there is solid demand related to teleworking and online learning, there is a decrease in sales of PCs, LCD monitors, and other peripheral devices comparing year-on-year. This slide shows our market share and sales by category in domestic PC shipment volume.
Please take a look at the graph in the middle. Our PC market share in the first half was 23.2% in total, but if we look at the corporate market alone, it was 30.9%. We increased our share in both year-on-year. The number of PCs shipped were the third record high at 1,329,000 units. Despite the shortage of supply, we were able to exert our strength as a multi-vendor to procure the products. Despite the backlash from a surge in demand until the last term, our three-year average CAGR grew in all categories steadily. We were able to capture the needs and performed strongly, especially in the software domain, where we are focusing on subscription sales. This is our performance for the subscription business at DIS. Subscription transaction volume in the first half increased by 9.2% year-on-year to JPY 34.1 billion.
Teleworking penetrated rapidly in the first half of last year, and our cloud service contracts increased, and we are still continuing to grow. Total amount of sales to our sales partners through DIS' original management portal, iKAZUCHI, were JPY 6.9 billion in the first half, an increase of 28% year-on-year. Number of vendors and services are also increasing steadily. Next, I'd like to talk about our fiber business. In synthetic fibers and rayon division, rayon materials, which is low environmental burden, performed strongly. On the other hand, sales of non-woven cloth for masks and disinfection sheets fell due to the backlash of strong demand in the last fiscal year. In Industrial Materials division, despite the strong demand for cartridge filters for electronic components manufacturers, sales continued to stagnate due to cancellation of events and decrease in construction projects.
In Clothing Products division, we saw an increase in orders for the U.S. innerwear, but casual clothing continued to struggle from the impact of self-restraint on going out. This is Industrial Machinery business. In Machine Tool division, there is a delay in recovery of our core aircraft and railroad sectors, but capital investments expanded in China, driving increase in orders. We also focused on sales of services by strengthening internal structure, but both sales and profits declined. In Automatic Machinery division, our clients continued to maintain cautious stance in making capital investments, but we enhanced sales for multiple lines and services, and as a result, improved our performance. This is the consolidated balance sheet.
With the collection of accounts receivables from the previous term, including from large projects for GIGA School Concep t, cash and deposits increased by JPY 11.8 billion to JPY 43.9 billion from the end of last fiscal year. Notes and accounts receivables decreased by JPY 81.3 billion to JPY 165.5 billion. Goods and products increased by JPY 11 billion to JPY 43.5 billion as we are procuring inventories strategically. Loans payable decreased by JPY 2.6 billion from the end of the last fiscal year to JPY 24.6 billion. We acquired JPY 2 billion of our own shares, resulting in a decrease in net assets by JPY 700 million to JPY 128.5 billion. This is the P&L. I already talked about net sales and each profit lines in the summary. Gross profit improved by 0.7% year-on-year from 7.8% to 8.5%.
SG&A expenses decreased by JPY 19.8 billion, mainly around sales expenses, but SG&A ratio increased by 0.4% year-on-year to 5.7%. Now, I'd like to talk about the full year outlook. There are no changes to the forecast we announced in May. In IT Infrastructure distribution business, we captured heightened demand triggered GIGA School Concept and penetration of teleworking, and for the first time, exceeded net sales of JPY 1 trillion, achieving our record high. Especially in the education market, ICT environment improved significantly, including network and software, other than one terminal per elementary and junior high school students. That contributed to increase in our sales by more than JPY 200 billion. However, for this fiscal year, in addition to the backlash of demand from last year, we also incorporated the impact of accounting standard for revenue recognition in our forecast.
Next, I'd like to again talk about strategies of each business in our medium-term management plan which started this fiscal year. For our main business of IT Infrastructure distribution, because of the rebound from the concentrated demand in terminals until last fiscal year and the impact of accounting standard for revenue recognition, we formulated the medium-term management plan anticipating a substantial decline in net sales. However, we will be exerting our strong capabilities of IT device distribution that we have built until today. Furthermore, we will be focusing on cloud domain and others by bolstering our technology and proposal capabilities to improve our performance in the coming three years. From here on, I'd like to concentrate on the key points. The first point is collaboration with manufacturers. Against the current environment where chip supply is tight, IT industry overall is significantly impacted.
For us to pursue our distribution function, it is critical to bolster collaboration with manufacturers. Not only are we procuring strategically based on the market trends and production status, we are also collaborating with each manufacturer to build sales expansion plans, develop original products, and campaign programs. We handle 1,300 manufacturers, 2.2 million items, and always keep 30,000 pieces of inventories. We will continue to address supply shortage in the market, utilizing our know-how of sales forecasting and inventory management, which we have a long experience of, and leverage our sales structure cooperating with manufacturers. Next, I'd like to talk about our continuous effort in the education ICT domain. With the promotion of GIGA School Concept since the last fiscal year, one terminal for every elementary and junior high school student has been distributed, and high-speed networks have been installed at each school.
Based on the Ministry of Education, Culture, Sports, Science and Technology, majority of public elementary and junior high schools already started to use terminals in their classes at all grades. On the other hand, how to utilize ICT, how to teach students using ICT, how to address information ethics, and students using terminals at home are some of the new issues that arose in the education field. In order to cater to such needs, post the GIGA School Concept , we prepared a structure to provide a wide variety of menus to support education sites through our sales partners, such as trainings for teachers, tools for remote classes, extended warranty of terminals, and so on. At the same time, introduction of one terminal per high school student is progressing step by step.
This move is different compared to last year's GIGA School Concept , since it will not be a simultaneous introduction throughout Japan, and how to burden cost is different depending on local governments. But we will contribute to optimal and efficient ICT rollout, leveraging our strengths of nationwide coverage. For the education overall, we will provide support to prepare an environment where students will be able to experience cutting-edge technologies such as high-performance PCs and 3D printers as a part of STEAM education to develop talents for the future. We will enhance our cooperation with our sales partners and utilize the know-how of the education specialty team to enhance our presence in the education ICT domain, where further expansion is expected to grow our business in a sustainable manner and to contribute to the society. Here, I would like to explain about iKAZUCHI.
In the medium-term management plan, we hammered out a policy to grow as a cloud distributor, and iKAZUCHI will be the key. iKAZUCHI is a subscription management portal site, which is unique to DIS, offered for use to our sales partners free of charge. As of September, we have 76 vendors and 163 services, and offer a common platform where cloud services can be sold with automatic renewal function of various types of charges, such as monthly, annual, or pay-as-you-go. In subscription sales, contract management and billing tends to be complicated. By reducing man-hours to deal with such work, we are strongly supporting our sales partners' subscription business. By increasing sales through iKAZUCHI, we will be able to strengthen the recurring revenue model for us as well as for our sales partners. Transaction volume of last fiscal year was JPY 11.1 billion.
We aim to grow this by more than 2.5 x in the coming three years, starting this fiscal year. The left graph shows our growth rate using fiscal year ended March 2018 as the base. As you can see, the number of contracts and the number of companies that use iKAZUCHI grew around 10-fold. The number of sales partners more than doubled, and the number of contracts per partner also grew. It is thanks to our strength as a multi-vendor that can propose combination of services in addition to the penetration of cloud service and an increase in its usage. Going forward, not only are we going to bolster our cloud menu proposal capabilities, but also leverage our nationwide sales network to enhance our coordination and management capabilities to grow iKAZUCHI into a more enriched platform and create additional value that a single vendor will not be able to realize.
Next is about strengthening our proposal capability in infrastructure business. There is a serious problem of companies losing their competitiveness because of the so-called 2025 cliff, which is a social issue surrounding IT infrastructure. Many companies still maintain old generation internal legacy systems, and efficiency has been sacrificed as their operation continued for a long period of time, complicating and enlarging the systems. There is also a shortage of developers and maintenance personnel for such systems, and it is expected that such resources will face further shortage in the future. Furthermore, with novel coronavirus, business continuity risks became apparent with measures needed for teleworking and others. Because of the difficulties of companies not being able to address environmental changes using their existing IT equipment, it has become more important to be able to make comprehensive proposals. We have strength in sales of PCs, terminals, and endpoints.
On top of that, we will be developing a business model to be able to support the whole system covering cloud service, on-premises platform, and operation and technology support. Business formats and sizes of our sales partners are varied, but by utilizing the necessary parts out of the versatile functions we are providing, they can focus their resources on their strong domains while fulfilling a wide variety of needs of end users. By providing functions to address omnidirectional needs, we will provide value to our partners by becoming a company that they can rely on for everything. As a summary of IT infrastructure distribution business, we will enhance our function as a distributor that multiplies the strength to address changing and complicated needs to solve social issues. We will also bolster our capability to provide solutions that uses cutting-edge technologies to lead to business.
Also, because we are a company that covers Japan nationwide, we can gather information and address the different needs of different regions by efficiently matching diversified customer needs and a variety of technologies. By rolling that out nationwide, we aim to become a company that continues to support all kinds of IT businesses. This is Fiber business. Based on our medium-term management strategy, we are working on each initiative. Looking at our performance until the first half, despite the headwinds of stagnant demand triggered by prolonged COVID and surge in fuel prices, we are progressing with contributing to ESG, strengthening our R&D structure, and reorganizing our businesses based on the plan. At Daiwabo, we are putting a lot of efforts into developing our unique materials under our Fiber strategy. With the keywords of environment, health, and safety, we are enhancing our development structure.
In September this year, we consolidated our R&D team at Harima Research Center in Hyogo Prefecture. We are proactively expanding our R&D domains through industry, academia, government collaboration, engaging in broad research and application development covering hygiene materials to industrial materials to apparel. Next is Industrial Machinery business. We still cannot be optimistic about our orders, mainly from aircraft industry, which was severely hit by novel coronavirus. But we are witnessing some recovery since the end of the first half. There are growth areas that O-M's technology can contribute to, such as expansion of demand, especially in offshore wind power generation and 5G equipments. Thus, we will take measures to make sure we capture such demand. We are also improving our internal structure to enhance our services to improve our profits and customer satisfaction. Here, I'd like to explain about shareholder returns.
There are no changes to dividend forecast from our May disclosure and are planning interim dividend of JPY 30, year-end dividend of JPY 30 , total of JPY 60 . This graph shows the dividend trend since fiscal year ended March 2010, when Daiwabo Holdings was established. We are offering interim dividend for the first time this fiscal year to enhance profit return opportunities to shareholders. We also performed share buyback of around JPY 2 billion from May to August. All in all, we expect our payout ratio to be 31.2% and total return to be 41.8%. In the medium-term management plan, our policy is JPY 60 annual stable dividend and flexible buyback. We will continue to strike a balance with our growth investment and make efforts to enrich shareholder returns. Last of all, I'd like to explain about our group sustainability initiatives.
In the first half, we, as a group, formulated materiality, improved independence and diversity of our board of directors, and obtained DX Certification. We will continue to promote our activities, including enriching disclosure related to ESG. Our group established ESG Promotion Committee to continue with our ESG activities through collaboration with each operating company. We are also improving and enriching external communication at the same time. We ask for your continuous support as we are aiming to become a company long trusted by our stakeholders by increasing corporate value sustainably and by contributing to the society through our businesses. This concludes my presentation. Thank you very much for your attention.