I am Akihisa Nabeshima. I will go over the Financial Results For The Third Quarter of FY 2022, as well as the full year outlook. First, the key points. The top half describes results for the first nine months compared to the same period of the previous year. The bottom half is the full year forecast compared to the forecast announced last November. First, the results for nine months. Year-on-year, net sales increased 11.4% to JPY 765.1 billion. Against the backdrops of sales volume increase due to strong demand, price revisions made in response to rises in material prices and the impact of the weaker yen. Operating income was JPY 14.8 billion, down 61.1%. Overall, sales increased and profit decreased.
In materials, profit decreased despite such positives as sales volume increase mainly for automotive and aircraft applications, and the impact of the weaker yen. This was because of a decline in productivity in the US due to equipment failure at a plant, a decrease in productivity and production in Europe caused by labor shortages and a plant fire in December, lockdowns and subsequent economic slowdown in China, and rises in material and fuel prices and logistics costs. In healthcare, profit decreased year-on-year due to the market entry of generic alternatives to Fabrazyme and drug price revisions. We recorded a net loss attributable to owners of parent of JPY 7.1 billion as a result of impairment losses of goodwill in composites and the increase in the tax burden rate triggered by the increased deficits at overseas subsidiaries.
As for the full year forecast, we project net sales of JPY 1,030 billion, about JPY 20 billion lower than the previous forecast, and operating income of JPY 10 billion, down JPY 15 billion from the previous forecast of JPY 25 billion. Materials expects a significant drop in profit due mainly to the fire at the plant in Europe and the delay in the start-up after the equipment failure at the U.S. plant. We have revised net income to a loss of JPY 18 billion, as mentioned earlier, due to the recording of impairment losses on goodwill. The dividend forecast remains unchanged at JPY 40 per share. Key assumptions for main target markets have not changed much since the previous announcement, so I will skip those pages. We closed the third quarter, as mentioned earlier, with higher sales and lower profit year-over-year and a net loss attributable to owners of parent.
Next is the income statement. As operating income dropped by JPY 23 billion, other profit items also declined year-on-year. Accordingly, the key management indicators ROE and ROIC declined as well. CapEx depreciation and amortization and R&D expenses were as shown on the slide. Looking at the results in materials by segment, in aramid, sales volume decreased due to a decline in productivity caused mainly by the labor shortage and the limited supply of key consumables from suppliers, and decreased production volume caused primarily by the suspension of operations of production lines after a fire at the raw material plant. Meanwhile, revision of selling prices to respond to impact of the increased natural gas price on costs and the effect of the weaker yen contributed to earnings, resulting in increase in net sales and profit.
Resin was affected by lockdowns and subsequent economic slowdown in China, as well as slowdown due to COVID, resulting in decreased sales volume and thus a decline in sales and profit. Carbon fibers saw very strong demand for all applications. In particular, products for aircraft applications posted increased sales volume. With successful price revision to counter a sharp price increase of a main raw material, net sales and profit increased. In composites, sales volume increased mainly due to a gradual reduction in the impact of the suspension of OEM production, caused primarily by the shortage of parts and materials, including semiconductors and ramping up sales for a new large-scale program. Helped also by successful price revisions to counter soaring raw material prices, net sales increased.
Profit declined due to continued low productivity due to labor shortage coming from tight labor supply, as well as a decline in productivity and additional expenses due to equipment failure. Battery materials posted higher sales and profit on strong sales of separators. Healthcare felt the impact of a significant decline in sales volume of Fabrazyme due to the market entry of generic alternatives in June. Diabetes treatments, Sogliaglian and Zafatek remained firm. In January 2023, we launched OSTABALO, a treatment for osteoporosis. Home healthcare are strong and steady. In the fibers and products converting segment, industrial materials and fiber materials and apparel both remained strong. Selling prices for fiber materials and textiles were successfully raised to counter sharp rise in raw material and fuel prices, and logistics and purchase costs, resulting in increased sales and profit.
In the IT segment, advertising and promotion expenses were enhanced to strengthen marketing in the e-commerce service, resulting in very strong sales. The orthopedic implantable devices business posted strong results with increased sales. The regenerative medicine business of Japan Tissue Engineering, JTEC, was affected by a decline in sales of the autologous cultured epidermis, JACE, resulting in a decrease in sales and profit. Turning to non-operating items, foreign exchange gains and losses were positive, partly due to the impact of the weaker yen, while interest expenses increased due to rising interest rates and others. Net of non-operating items remained almost unchanged from the previous year. Extraordinary items include sale of non-current assets and the sale of strategic shareholdings, whose level was about the same as in the previous year. Given the impairment losses, net of extraordinary items was a loss of JPY 8.3 billion.
Moving on to financial position. Total assets increased overall. A major factor was the impact of exchange rates. In addition, inventories increased due to higher raw material prices, and there also was an impact of impairment losses on non-current assets. Overall, total assets increased. The debt-to-equity ratio increased slightly. In terms of cash flows, free cash flow was positive JPY 3.8 billion, as cash flow from investing activities was within the range of cash flow from operating activities. Next, the full year earnings forecast for fiscal 2022. Year-on-year, sales are projected to increase from JPY 926.1 billion to JPY 1.03 trillion, up 11.2%.
This is mainly due to the enhancement of production capacity in materials as well as the increase in sales volume following the operation of the new plant, selling price revisions, favorable exchange rates, and other factors. Operating income is forecast to decrease by 77.4% due to such factors in the materials business field as a decline in productivity in the U.S. caused by an equipment breakdown, impact of a plant fire, and a rise in the natural gas price, as well as the impact of generic alternatives to Fabrazyme in the healthcare business. We forecast a loss attributable to owners of parent to be JPY 18 billion. I will explain the previous outlook later and no change in the dividend forecast. Regarding profit and loss, sales and operating income forecasts are as shown here.
We expect the management indicators, ROE and ROIC to be slightly lower than in the previous year, and also slightly lower than the previous forecast. Although profit are projected to decline, free cash flow is forecast to be almost the same as the previous forecast, partly due to the impact of a slight decrease in capital investment. Let me elaborate on the outlook by segment, mainly comparing to the previous forecast. Net sales forecast is JPY 1.03 trillion, compared to the previous forecast of JPY 1.05 trillion, down JPY 20 billion. In particular, down JPY 20 billion in materials given the impact of the fire on aramid. Operating profit is projected at JPY 10 billion, compared to JPY 25 billion in the previous forecast, again due to a decline in materials. Some details about the segment.
Aramid production has decreased due to the suspension of the production line following a plant fire. While natural gas prices remain below the previous assumption, the effect of profitability improvement has been extremely limited due to the reduced operation resulting from the fire. Resin was affected by the economic slowdown in China after lockdowns. Carbon fibers, raw material and fuel prices remained below assumption. Composites, improvement of productivity was delayed due to the delay in starting up after recovering from the equipment failure. Sales volume in some programs has decreased due to a supply shortage of OEM parts. Healthcare, no change from the previous forecast. EBITDA is projected at JPY 85 billion, down JPY 28 billion year-on-year. Details are as I just explained.
Financial soundness has deteriorated slightly due to increased liabilities following the takeover of the sales rights for diabetes treatments from Takeda Pharmaceutical in FY 2021, as well as deterioration in business performance this fiscal year. As for the annual dividend, the forecast remains unchanged at JPY 40 per share. While we project a net loss for FY 2022, this is deemed a temporary loss as the aramid fiber, deterioration in productivity in composites, equipment failure, and impairment of goodwill are all temporary one-off factors. The earnings structure has not changed significantly from the previous outlook. In light of our policy of paying stable and continuous dividends, we have made a comprehensive judgment to keep the annual dividend forecast unchanged at JPY 40. This concludes my presentation. Thank you for your attention.