I am Akihisa Nabeshima, the CFO. I will go over the results of FY 2021 and outlook for FY 2022. Please turn to page one. The key points of this announcement. First, the results for FY 2021. As shown in the right graph, net sales totaled JPY 926.1 billion, a 10.7% increase year-on-year due to increased sales driven by economic recovery. Operating income dropped to JPY 44.2 billion, down 19.5% year-on-year. Strong sales in the healthcare segment resulted in a record high operating income of JPY 43.2 billion, and almost offset the impact of the decline in governmental demand for medical gowns in the fibers & products converting.
The Materials felt the impact of sharp rise in raw materials and fuel prices in the composites business and the Aramid business, as well as the production suspension caused by plant power outages in the Aramid business, resulting in an operating loss of JPY 5.7 billion despite efforts to revise selling prices in the fourth quarter. Net income was JPY 23.3 billion, an improvement from a loss in the previous year. Outlook for FY 2022, net sales JPY 1 trillion, up 8%, and operating income JPY 50 billion, up 13.1%. While the Healthcare expects impact of generic drugs on Feburic, the main pharmaceutical product, the Materials expects continued strong demand for its products and the positive effects of investments on production capacity expansion. Profit attributable to owners of parent is forecasted to be JPY 28 billion, up 20.9%.
The annual dividend is forecast to be JPY 55 per share, the same level as in FY 2021. Page two, key assumptions on our main target markets for FY 2021 and FY 2022. For Aramid, demand in FY 2021 was firm in automotive, industrial materials, and ballistic protective apparel. We expect firm demand to continue in FY 2022. As for resin in automotive and office machine, manufacturers' operations decreased in FY 2021 due to the semiconductor shortage and COVID-19. We expect a gradual return to normal level in FY 2022. As for carbon fibers, demand for air travel, especially for domestic flights, recovered mainly in Europe and North America, but recovering demand for international flights was limited. As for FY 2022, close attention on impact of COVID-19 and others is warranted. Composites for automotive saw OEM production constraints due to the semiconductor shortage in FY 2021.
We expect constraints on OEM production will gradually dissipate in FY 2022. As noted at the bottom, already incorporated in the outlook is continuation of the current rise in natural gas and material prices throughout the fiscal year, so somewhat conservative outlook. Factors not yet incorporated in the outlook include further rise in natural gas and material prices and continued semiconductor shortages in case the conflict in Ukraine is prolonged, which remains uncertain. Further supply chain disruption and the suspension of operation of Teijin's and customers' production bases in case lockdown in China continues. As these factors remain uncertain, they are not incorporated in the outlook at this point in time. Page three, healthcare segment. In pharmaceuticals, market for gout and hyperuricemia treatments continued to grow.
As for FY 2022, the number of patients is trending upward, but the entry of generic drugs will shrink the size of the market for these treatments. The market for diabetes treatments grew slightly, but in FY 2022, competition in the market remains fierce with the launch of alternatives with very different mechanism. In home healthcare, the home oxygen therapy, HOT, and continuous positive airway pressure, CPAP, expect strong business in FY 2021 to continue in FY 2022. For fiber materials and apparel, consumption recovered in Europe, North America, and China. The Japanese market remains sluggish with the emerging recovery trend halted by the COVID-19 variant. Close attention should be paid to this situation. Industrial materials felt the impact of semiconductor shortages in FY 2021. We expect gradual recovery in FY 2022. Special government demand for medical protective gowns and others declined from FY 2020.
In IT, piracy websites continued to affect e-comic services throughout the period from the fourth quarter of FY 2020, but the market grew continuously. As for FY 2022, the impact of piracy websites will continue, but the market growth will continue with the growth of comic applications primarily for younger generation. Page six, highlights of FY 2021 results. Net sales increased by 10.7% year-on-year. Operating income was down 19.5%. Profit attributable to owners of parent turned into positive at JPY 23.2 billion, recovering from a loss in FY 2020 when we recorded large impairment losses, mainly in the carbon fibers business. Dividends per share has been decided at JPY 55 as planned. Page seven, summary of operating results. PL numbers have already been covered. Among KPIs, ROE was 5.5%.
ROIC based on operating income deteriorated by about 3 points due to lower operating income and higher invested capital. EBITDA increased by JPY 6.3 billion to JPY 113 billion. CapEx was JPY 200.8 billion, including an increase in intangible assets due to the takeover of the sales rights for diabetes treatments, without which the amount was JPY 68.4 billion. Depreciation and amortization, JPY 68.8 billion, and R&D expenses totaled JPY 33.3 billion. Dividend for FY 2021 is, as mentioned earlier. Assumptions for FY 2021 were JPY 112 to the U.S. dollar and JPY 131 to the euro. Crude oil price $78 per barrel and natural gas price per megawatt-hour rose from EUR 11 in FY 2020 to EUR 69. Page eight, results by segment. The materials, higher sales and lower profit.
Aramid, higher net sales and lower operating income. Sales volume grew on a recovery in demand mainly for automotive applications. Production output declined due to extended large scale periodic maintenance and power outages at raw material plants. Soaring natural gas prices also dealt a heavy blow to cost. Resin, higher net sales and operating income. Sales volume decreased slightly due to the semiconductor shortage and the decline in customers' operations due to COVID-19. Selling prices were revised in a timely fashion in response to a sharp rise in price in main raw materials, bisphenol A. Carbon fibers, increase in both net sales and operating income. Sales volume increased for all applications. Selling prices have been revised in response to the sharp rise in the price of main raw material, acrylonitrile. The new carbon fibers plant in North America began operation in March.
Composites, higher net sales and lower profit. The semiconductor shortage affected the production of SUVs and pickup trucks beginning in Q2. Selling price revisions were partly implemented in Q4 in response to the rise in raw material prices. Battery materials, higher sales and profit. Sales volume of separators grew, mainly due to new customer acquisition in the smartphone market and the adoptions in new smartphone models. Page nine, quarterly changes in operating income in the material segment. From Q3 to Q4, an improvement of over JPY 7 billion from a loss of JPY 8.1 billion to a loss of JPY 0.9 billion. Aramid, resin, carbon fibers, and composites all improved from factors just mentioned. There also were the effects of selling price revisions. The projected Q4 operating income, as announced on February 7, was JPY 2.8 billion.
The actual was a loss of JPY 0.9 billion, meaning JPY 3.7 billion short. Aramid and carbon fibers were almost on par with the projection, while composites saw a decline in operations caused by the suspension of OEM's production due to semiconductor shortages. Also, raw material prices rose more sharply than forecasted. The effects of selling price revisions materialized almost as expected. Still, projected operating income was not achieved, primarily coming from composites. Page ten, healthcare. Higher sales and profit with a record high operating income. Pharmaceuticals saw robust sales of the four type 2 diabetes treatments, together with steady growth in sales of existing pharmaceuticals, Feburic, Somatuline, and Xarelto. Licensing income from Merck was recorded in December with the start of clinical trials of Alzheimer's disease drug candidates. In home healthcare, HOT up about 3% and CPAP up about 8%.
In new healthcare, the orthopedic implantable device business, which encompasses artificial joints, saw the number of surgical operations recover and sales of new and other products consistently increased amidst COVID-19. Net sales increased and operating income decreased, mainly due to the upfront cost of new businesses, including the comprehensive community-based healthcare. Page 11, fibers and products converting. Lower sales and profit, mainly in relation to the decline in the government demand for medical gowns. By subsegment, industrial textiles and materials saw strong sales in automotive and electronic parts applications and short polyester fibers for water treatment filters. Fiber materials and apparel was affected by the sluggish Japanese market, overseas plant shutdowns, and the sharp rise in raw material and fuel prices and logistics costs. The overall business conditions remain difficult even with progress in selling price revisions.
SG&A expenses decreased mainly as a result of initiatives to increase basic profitability over the last couple of years and the use of digital tools under COVID-19, such as remote business meetings and virtual trade shows. IT segment, lower sales and profit. In the IT services, sales remained strong. In the internet business, by optimizing advertising costs, profit was secured despite a decrease in especially high demand for e-commerce services from the previous fiscal year amid the stay-at-home trend and the continued impact of piracy websites. Decrease in operating income for the IT segment was caused mainly by an increase in SG&A expenses due to the main office relocation. Japan Tissue Engineering Co, JTEC, posted a decrease in net sales. While sales in regenerative medicine and R&D support businesses grew, sales in custom development and manufacturing declined due to the end of custom development deal with FUJIFILM Corporation.
Ocural was newly included in health insurance coverage in December and launched for sale. Clinical trials of allogenic cultured epidermis started in November. Page 12, non-operating items improved to a net positive of JPY 5.5 billion, coming mainly from improvement in equity and earnings of affiliates added with the benefit of weaker yen. Improvement totaled JPY 6.8 billion. Among extraordinary items, extraordinary income included an increase in gain on sale of investment securities. Impairment loss was reduced year-on-year, as in FY 2020 we recorded an impairment loss of JPY 39.2 billion in the carbon fibers. Overall, extraordinary items improved by JPY 38.7 billion. Impairment loss in FY 2021 included JPY 5 billion on fixed assets in the composites business in China. Page 13, financial position.
Total assets were JPY 1,207.6 billion, an increase of over JPY 160 billion. This was mainly due to an increase in intangible fixed assets from the takeover of the sales rights for the diabetes treatments and also an increase in inventories due to higher material prices. Interest-bearing debt increased in relation to diabetes treatments acquisition. Debt-to-equity ratio somewhat worsened, which was in line with our expectation to 1.10, and after capital adjustment, 0.97. As for cash flows, free cash flow was net cash outflow of JPY 108.7 billion with investment in relation to diabetes treatments. Next, outlook for FY 2022. Page 15, outlook highlights. Net sales, JPY 1 trillion, up 8%.
We expect the materials with increased production capacity in each of its subsegments and an increase in sales volume coming from the start of new plant operations to offset a decrease in net sales in the healthcare due to the market entry of generic drugs as alternatives to Feburic. Operating income up 13.1% at JPY 50 billion for the same reasons, mainly a sales increase in the materials and the positive effects of selling price revisions and cost reduction measures, which altogether should have an offsetting effect. Profit attributable to owners of parent, JPY 28 billion. We expect the yen depreciation on a full year basis with JPY 125 to the U.S. dollar and JPY 135 to the euro. Crude oil price, $100 per barrel. Natural gas price, up from EUR 69 to EUR 105.
Overall, we expect high energy prices throughout the year. Next page, summary of outlook for FY 2022 highlights. I've already explained P&L. Among KPIs, ROE 6%, ROIC based on operating income 6%, and EBITDA JPY 125 billion, up JPY 12 billion, free cash flow JPY 30 billion, CapEx JPY 70 billion, and R&D expenses JPY 34 billion. Debt-to-equity ratio down from 1.1 to 1.0. After capital adjustment, down from 0.97 to 0.9. The ratio temporarily worsened due to the takeover of the sales rights for diabetes treatments. As we expect early recovery, we project KPIs to return to the level envisioned in the medium-term plan. Next page, net sales and operating income by segment.
Healthcare expects lower sales and profit, but the rest expects both net sales and operating income to increase. In materials, we project sales volume to increase due to the increased production capacity of each sub-segment and the start of operation of the new plant. Operating income is expected to improve due to selling price revisions. In fibers and products converting, we expect increased sales volume of industrial materials for automotive applications and textiles and apparel products due to a recovery from COVID-19 and overseas plant shutdowns. Operating income will improve due to selling price revisions. In IT, we project sales to increase and expenses for head office relocation to decrease, but costs will increase due to the enhancement of marketing, so flat growth year-on-year. As noted below, from FY 2022, the orthopedic implantable device business of Teijin Nakashima Medical has been reclassified from healthcare to others, corporate.
Its impact on net sales is approximately JPY 10 billion, while that on operating income is almost negligible. Next page, outlook on materials segment. Higher sales and profit. Aramid expects higher rate of plant operations, as in FY 2021 there were the large-scale periodic maintenance and its extension and power outage at raw material plants. We expect soaring of raw materials to continue, but we will promote price revisions. Added with sales volume increase due to increased production capacity in the Netherlands, we project profit to increase. For resin, we expect sales volume to increase due to the decreased impacts of COVID-19, the semiconductor shortage, and the power shortage in China, as well as progress of shifting to higher profitable sales mix.
Considering the adverse impact of the gap in carryover stock of BPA at the beginning of FY 2022 and the rise in logistics costs, we are projecting a flat growth year on year. As for carbon fiber, we expect sales volume to increase due to a strong recovery in aircraft demand. With the start of operation of the new plant in North America in March, we expect increase in the sales of products for general industrial and recreational applications. For composites, please look at the next page 19, which describes external trends and progress of our profit improvement measures. In terms of external trends, raw material prices continued to rise throughout FY 2021, and raw material prices will remain high until the end of FY 2022. The semiconductor shortage impacted FY 2021 from Q2 to the end of the fiscal year.
We are assuming that the situation will gradually return to normal toward the end of FY 2022. Labor shortage in the US. Continued throughout FY 2021. We expect it to improve gradually, and the necessary plant labor force will be secured in the first half of FY 2022. Profit improvement measures are fourfold. First is raising prices. In FY 2021, we implemented price revisions mainly with middle-ranking OEMs from Q4. This was accomplished generally as planned. In FY 2022, we plan to implement price revisions with major OEMs, and negotiations have already started. Second is the establishment of new projects. In FY 2021, a new large-scale program was established at the new Texas plant in Q4. Higher utilization is expected for the entire fiscal year. In addition, a new large-scale program is planned to be established.
The third is automation of molding processes, and the fourth is the shift to in-house coating processes. We expect the annual cost reduction effect of around JPY 1 billion. As noted below, timing of breakdown for the U.S.'s operating income after goodwill and intangible assets amortization was targeted for FY 2022 in the medium-term plan, but it appears difficult due to the impact of semiconductor shortage, soaring of raw material prices, and consistent high labor cost, which is lingering beyond our expectation. We now aim to achieve break-even point by FY 2024, while resorting to such measures as establishing large-scale new programs, raising selling prices, automating molding processes, and insourcing painting processes. Next, healthcare segment. We expect both net sales and operating income to decrease.
The factor is the sales volume decrease of Feburic, the main pharmaceutical product, due to the market entry of generic drugs and drug price revisions, which is to be offset by the increased sales of existing pharmaceuticals and the number of rented medical devices, but not sufficiently. Integration between the pharmaceuticals and the home health business will be promoted to transform the cost structure. In new healthcare, sustained efforts will be made to establish a foundation for the comprehensive community-based healthcare business and to expand the product lineup of functional food materials. Page 21, factors of changes in EBITDA, up from JPY 113 billion to JPY 125 billion, which is short of JPY 150 billion. Factors are shown there. Page 22, shareholder return policy remains unchanged.
Weathering the continued stable distribution of dividends, we plan to pay an annual dividend of JPY 55 per share, the same as in FY 2021. Thank you.
This is Akimoto Uchikawa. I assumed the position of CEO in April. I would like to explain the initiatives in FY 2022 toward the formulation of the next medium-term management plan. Please turn to page 24. As shown previously, the positioning of the current medium-term management plan, we consider this as the period of creating growth platforms for sustainable growth toward 2030. The current fiscal year is the final year for establishing these platforms. Please turn to page 25. When I took office, I said that I would review our current activities on a fact-based basis and decide what to do next. Although the current MTP is still in progress, I would like to look back and summarize the last two years.
In the initial year, we made changes to our earnings plan centering on the carbon fibers business, which was heavily affected by COVID-19. While we had to modify, we gained confidence that the direction of the MTP remained valid, so we continued to make investments to create the growth platforms. As for the second year, FY 2021, the operating results were as reported by CFO Nabeshima. In summary, the Materials and the Fibers & Products Converting were affected by the sharp rise in raw material and fuel prices and logistics costs triggered by COVID-19. While the Healthcare recorded an all-time high operating income and the IT remained strong. Qualitatively, the main achievements in establishing growth platforms during the past two years were as follows. In Materials, we completed the expansion of Aramid fiber production capacity and the start of operation of the new carbon fibers plant in North America.
In composites, our plan to acquire and launch a new program that will be effective in earning future profits was generally fulfilled, including a new plant in Texas. In the healthcare segment, we transitioned from the business unit to functional headquarters system to promote comprehensive community-based healthcare business. Now that the system is in place, we are pursuing ahead, or we are pushing ahead further to drive initiatives for comprehensive community-based healthcare. Furthermore, with a view to making up for the patent cliff of Feburic and to expand areas of comprehensive community-based healthcare business to connect to addressing lifestyle-related diseases, we acquired the sales rights for diabetes treatments. We achieved these successfully in FY 2021 without significant cost increase. Furthermore, we made entry into the regenerative medicine business as a field where we can expect synergy of our expertise in materials, healthcare, and engineering.
Overall, I believe that the establishment of these growth platforms has been successful. On the other hand, material shortage due to supply chain disruption, soaring raw material and fuel prices, and sharp rise in logistics costs caused by COVID seriously affected our operating performance, and this is recognized as realized risk. Next, please turn to page 26. The bar graph shows the total amount of EBITDA, which was originally targeting JPY 150 billion for FY 2022 in the medium-term management plan. The graph shows the gap in the outlook for this year. Unfortunately, our current plan is JPY 125 billion, not reaching the target JPY 150 billion. Let me explain this gap. While healthcare has made great progress, including the acquisition of diabetes treatments from Takeda, we are also planning to launch new businesses, including through M&As.
There is a delay in generating profits from these areas, and that accounts for this gap. In the materials, although the top line is to increase significantly, the delay in improving profitability in the composites will have a major impact. Also, with regard to the Aramid, despite steady progress in capacity expansion, there is a shortage in inventory at the beginning of the period due to the power outages in the previous year. There also is the big impact of the soaring prices of natural gas in Europe, causing a big gap. Based on all these, we would work on the formulation of the next medium-term management plan. Next, page 27, which summarizes initiatives prioritized for this fiscal year to formulate the next management plan. As I said at the beginning, we will continue to devote all our energy to establishing the growth platforms this year.
We have been trying to achieve both the development of future profit sources and profitable growth. Along the way, we have faced some issues and challenges. We are considering structural reforms to address them and will execute and drive them. One example is the composites business, in which we have been pursuing the strategy of deploying products and solutions we obtained from business acquisition North America to other regions, and vice versa, to bring solutions based on Teijin's original business in such areas as carbon fibers and thermoplastics resin to North America. After several years of pursuing this dual-front strategy, we have learned what works and what doesn't. Based on this learning, we will review the area strategy and shift to investing in carefully selected resources in line with the priorities of each region.
In parallel with these, as demand for sustainable management is steadily increasing, we will further strengthen and promote our initiatives in this area. Finally, but not the least, as I said at the beginning, in formulating the next medium-term management plan, we will speedily implement the following three points in order to lay the foundation for the changes forward. I reviewed some of the status today. I will do so in each project, program, and business on a fact basis and summarize the results so far. What worked will be expanded further in the next medium-term plan. While on what didn't, we will pause and review the strategy during this year. Also, regarding the business portfolio, we will review the direction originally set forth in the current MTP, clarify the priority of the portfolio we are aiming for in the next medium-term, and decide on the resource allocation policy.
As you can see on the previous page, we have been pursuing both the development of future revenue sources and profitable growth. Now that we have established growth platforms, we should expect future earnings source to finally shift to making profitable growth. We would also work toward pursuing innovation to create a new source of profit. We regard this as a priority challenge, and we'll be promoting this as well. This ends my explanation. Thank you for your attention.