Thank you very much for joining us today despite your busy schedule. On behalf of Toray Group, I would like to take this opportunity to extend my gratitude towards your continued understanding and your interest in management and business activities. Now, I would like to follow the table of contents shown on page one. This is a summary of the business performance and forecast. Now, I would like to report Toray's business results for the fiscal year ending March 2024 and the business forecast for the fiscal year ending March 2025. Furthermore, I would like to report the company has decided a policy to reduce the amount of cross-shareholdings and all proceeds from sales of cross-shareholdings will be used for share buybacks. I will explain the details starting from the next page.
I would like to begin with an overview of business results for the fiscal year ending March 2024. Please turn to page 4. Revenue for the fiscal year ending March 2024 decreased 1% to JPY 2,464.6 billion compared with the previous fiscal year, and Core Operating Income increased 6.9% to JPY 102.6 billion. Net income decreased 69.9% to JPY 21.9 billion. As for annual dividend, the company anticipates to pay JPY 18 per share of common stock. ROIC was 2.8% while ROE was 1.3%. Page 5 explains special items. Special items for the period worsened by JPY 57.9 billion to JPY -45 billion compared with the previous fiscal year. Details on impairment losses announced on May 8th will be explained later. Page 6 is about assets, liabilities, equity, and free cash flow.
As of March 21, 2024, Toray Group's assets and liabilities were affected by the increase in translated yen amounts of overseas subsidiaries because of the depreciation of the yen. Total assets stood at JPY 3,466.5 billion, up JPY 272.5 billion from the end of the previous fiscal year, mainly due to increases in trade receivables and other receivables, tangible fixed assets, and other financial assets. Total liabilities increased JPY 61.9 billion from the end of the previous fiscal year to JPY 1,620.2 billion, owing mainly to increases in deferred tax liability. Total equity came to JPY 1,846.4 billion, up JPY 210.6 billion from the end of the previous fiscal year. Owner's equity was JPY 1,736 billion, interest-bearing liabilities was JPY 949.7 million, and the D/E ratio was 0.55. Free cash flow was positive at JPY 64.7 million.
The table on page 7 shows revenue and Core Operating Income and factor analysis of a JPY 6.6 billion increase in Core Operating Income for the fiscal year ending March 2024 on a year-over-year comparison. In the performance chemicals segment and the carbon fiber composite materials segment, utilization rate has improved, capturing a steady recovery of demand in the automobile market and in aircraft. Moreover, due to promotion of structural reform and strategic pricing, the Core Operating Income rose 6.9% to JPY 102.6 billion. Core Operating margin improved 0.3 points. The cost variance, etc., worsened due to the increase in utilization rate, however, the difference in quantity did not increase along with the utilization rate because of the effect of demand decrease for wind turbine blade and the change in product mix from business advancement, which is promoted in the business structure reform.
Using page 8 and after, I would like to explain the results of each segment. First, fibers and textiles. Revenue of the overall segment decreased 2.4% to JPY 974.8 billion compared with the previous fiscal year, and Core Operating Income rose 6.8% to JPY 54.7 billion. Despite the harsh business environment, including soaring raw material prices, Core Operating Income increased due to improvement in spread by passing on cost increases to sales prices and promoting high added value creation. Upper-end applications were strong, specifically for trading subsidiaries in and outside Japan, although affected by deteriorating market conditions in the U.S. and Europe. In industrial applications, recovery trend continued as demand for automobile applications recovered due to alleviation of semiconductor shortages as well as expansion in EV applications. Page 9 is the performance chemicals segment.
Revenue decreased 2.6% to JPY 886.1 billion compared with the previous fiscal year, and Core Operating Income rose 20.8% to JPY 36.7 billion. Improvement in product mix in the resins and film business resulted in JPY 3.9 billion of net change in price, contributing to the increase in Core Operating Income. I would like to explain the conditions of each business on the next page. In the resins and chemical businesses, as demand decline in the Chinese market continued, revenue of the resins business decreased, but profitability improved due to improvement in product mix through increased ratio of high added value products and further proceeding with passing on cost increases to sales prices, reduction in fixed costs, etc. In addition, automobile applications in Japan showed signs of improvement. The chemicals business performed strongly.
In the films business, even though the mainstay electronic parts-related application of PET film is recovering gradually, the impact of inventory adjustment in supply chains persisted in some areas. In the electronic and information materials business, OLED-related materials and circuit materials saw some recovery. Page 11 is the carbon fiber composite materials segment. Revenue increased 3.1% to JPY 290.5 billion compared with the previous fiscal year, and Core Operating Income fell 17.3% to JPY 13.2 billion. I would like to explain the status of each application on the next page. In the aerospace applications, the production rate of commercial aircraft as the major customer has steadily recovered. The sports applications were slow due to the full-fledged inventory adjustment, mainly in general-purpose products for outdoor leisure. The wind turbine blade applications were impacted by production adjustment from a decline in demand. In addition, demand for the industrial applications softened.
Page 13, in the environment and engineering segment, revenue increased 6.7% to JPY 244.1 billion compared with the previous fiscal year, and Core Operating Income rose 17.7% to JPY 23.2 billion. In the water treatment business, shipment in the U.S. and China, the two major markets for reverse osmosis membranes, were strong. In addition, sales of a construction subsidiary in Japan were strong, while plant-related business as an engineering subsidiary grew. Page 14 is the life science segment. Revenue decreased 2.8% to JPY 522.2 billion compared with the previous fiscal year, while Core Operating Income was JPY -1.3 billion, a JPY 1.5 billion decrease compared with the previous fiscal year. In the pharmaceutical business, while sales volume of orally active prostacyclin derivative Dorner expanded for the overseas markets, sales of pruritus treatment Remitch were affected by the introduction of its generic versions as well as by an NHI drug price revision.
In the medical devices business, though sales of dialyzers were affected by the soaring prices of raw materials and fuels, shipment of dialyzers for hemodiafiltration in Japan was strong. Page 15 shows the business results of major subsidiaries and regions. At Toray International, sales of fibers and textiles, resins chemicals, and films decreased, but Core Operating Income was the same level as the previous fiscal year, stemming from enhancement of the initiatives with major customers. As for subsidiaries in Southeast Asia, in the fibers and textiles business, upper-end applications were affected by the worsening market conditions, while in the industrial applications, automobile applications were on the recovery trend. The performance chemicals business, mainly in resins business, was affected by the sluggish Chinese market conditions, but the spread showed a trend toward improvement.
As for subsidiaries in China, in the fibers and textiles business, the upper-end applications were affected by the sluggish market conditions in the U.S. and Europe. However, domestic sales were strong. In the industrial applications, automobile applications showed a recovery trend. The performance chemicals business was affected by the demand decrease in resins products, but the spread showed a trend toward improvement. As for our subsidiaries in the Republic of Korea, in the fibers and textiles, supply and demand balance of non-woven fabric worsened. Meanwhile, in the performance chemicals business, sales of film products expanded. Next, I would like to explain the consolidated business forecast for the fiscal year ending March 2025. Please turn to page 17.
The pace of recovery in the global economy is likely to remain slow due to factors such as the high interest rates in the U.S. and Europe, dampening consumer spending and capital investment, as well as the slow recovery in the Chinese economy. The Japanese economy is also expected to show a gradual recovery. However, the prolonged real estate recession in China slowed down consumption in the U.S. and Europe, owing to the delay in the start of interest rate cuts, rising tensions in the Middle East, a change in the Bank of Japan's monetary policy, and foreign exchange fluctuations are among downward risks for the economy in Japan and abroad.
For the fiscal year ending March 31, 2025, Toray expects revenue of JPY 2,620 billion, Core Operating Income of JPY 135 billion, and profit attributable to owners of parent of JPY 81 billion, given the business expansion in the core business fields and proceeding the improvements in profitability. In terms of annual dividend, the company anticipates to pay JPY 18 per share of common stock with a payout ratio of 36%. Page 18 shows the consolidated business forecast for the fiscal year ending March 2025 by segment. We expect sales volume increase in the performance chemicals segment from the end of the supply chain adjustment and in the carbon fiber composite materials segment from the sales expansion of aircraft applications and the recovery in the industrial applications.
Furthermore, by promoting undertaking in the effects of the strategic pricing and profitability improvement projects, all segments are expected to increase both in revenue and Core Operating Income year-on-year. Core Operating Income margin is expected to improve by 1 point. Page 19 shows the comparison of Core Operating Income between the actual results for fiscal year ending March 2024 and the forecast for fiscal year ending March 2025 with breakdowns into segments. I would like to explain further about the business performance of the carbon fiber composite materials business in the fiscal year ending March 2024 and the forecast of this segment for the fiscal year ending March 2025. Core Operating Income of the fiscal year ending March 2024 was JPY 13.2 billion, a decrease from the forecast of JPY 17 billion at the beginning of this fiscal year. Reviewing the business performance by segment, factors are as shown in the center column.
Number 1, demand in commercial aircraft steadily recovered. However, number 2, it was significantly impacted by the decline in demand for wind turbine blade application. Consequently, we implemented a significant operational adjustment in the large tow carbon fiber. In addition, industrial applications were affected by the temporary inventory adjustment at customers in the third quarter, and the sales decrease caused a decline in the utilization rate of production lines in the fourth quarter. For the fiscal year ending March 2025, the recovery trend of the demand for commercial aircraft will continue. Demand in wind turbine blade is also on the recovery trend from the fourth quarter of the fiscal year ending March 2024, and we expect further recovery from the second half of the fiscal year ending March 2025.
As for industrial applications, the inventory adjustment, which occurred in the fiscal year 2023, ended within the fiscal year, and the demand in the sports applications, which continues to be sluggish, is expected to recover from the second half of fiscal year 2024. Business performance of the carbon fiber composite materials business will steadily step up toward the targets set in APG 2025. Page 21 describes the trends in capital expenditures, depreciation, amortization, and R&D expenditures. Capital expenditures for the fiscal year ending March 2025 are expected to be JPY 240 billion, depreciation and amortization JPY 130 billion, and R&D expenditures JPY 81 billion. This is all I have to explain about the business results for the fiscal year ending March 2024 and the business forecast for the fiscal year ending March 2025.
Page 22 shows the major companies that posted impairment losses in these financial results, business environment, short-term initiatives for profitability improvement, and forecast. The large tow carbon fiber business in the carbon fiber composite materials segment posted JPY 19.2 billion of impairment loss for M&A goodwill, as well as some intangible assets and fixed assets from decreasing profitability due to demand decrease caused by cancellation and delay of wind power projects in the U.S. and Europe. Going forward, we will work on reduction of fixed costs and utility costs. Moreover, full operation is expected at the Mexico plant in the fourth quarter of fiscal year 2024, as demand in wind turbine blade application is expected to be on a recovery trend. In the performance chemicals segment, battery separator film and PET film businesses posted impairment loss for production lines whose competitiveness has decreased.
We will work to restore profitability in fiscal year 2024 by promoting sales expansion and strategic pricing, in addition to further cost reduction. The fibers and textiles segment posted impairment loss for subsidiaries in China, etc., as in PP spunbond business, the supply and demand balance worsened and the competition is increasingly fierce. We aim to restore profitability in fiscal year 2024 by proceeding additional countermeasures such as reviewing production capacity and pursuing further cost reduction. Please turn to page 23. To accelerate capital efficiency improvement, we have decided to reduce cross-shareholdings by half. Specifically, we will reduce 50%, about JPY 100 billion, in three years from fiscal year 2024 to 2026. All the proceeds from the sales of cross-shareholdings will be used for share buybacks. Next, I will explain about capital allocation.
As an addition to the capital allocation under APG 2025, we will reduce cross-shareholdings and implement shareholder returns, that is, share buybacks, with proceeds from the sales. There is no change in the targets established under APG 2025, positive free cash flow in three-year total, and a D/E ratio of 0.7 or lower. Now, I would like to explain about the progress of the Medium-Term Management Program, Project APG 2025, for three years from fiscal year 2023 to fiscal year 2025. In one of the basic strategies of APG 2025, Sustainable Growth, based on Toray Group's sustainability vision, we have positioned the Sustainability Innovation, or SI business, and the Digital Innovation, or DI business, as growth business fields for Toray Group, where we can leverage our strengths and expand revenue growth.
In fiscal year 2023, revenue from SI businesses increased 2.2% compared to the previous year to JPY 1,311.5 billion, as carbon fiber for aircraft applications and the water treatment business were strong, although the large tow carbon fiber for wind turbine blade was impacted by the slow demand. Meanwhile, although release films for semiconductor molding and other products were slow, revenue from DI business in fiscal year 2023 increased 9% compared to the previous year to JPY 181.3 billion due to the strong sales of FPD-related manufacturing equipment, as well as electronic coating materials for OLED. Page 28 describes cost competitiveness. In APG 2025, we will promote cross-organizational cost reduction that leverages the collective strengths of the organization, and by sharing the information and implementing the cost reduction activities globally, we will work on raising the level of cost competitiveness of the Toray Group as a whole.
In fiscal year 2023, we achieved a cost reduction of JPY 71.1 billion with a 36% progress rate. We will promote each activity, aiming JPY 200 billion of cost reduction in three years through self-efforts. Page 29 summarizes financial targets. Page 30 shows the sustainability targets. In addition to our financial targets, we are committed to achieving these targets in terms of sustainability. Lastly, I would like to report that I have reorganized and prioritized the basic strategies and specific measures of APG 2025 as key management measures, given the changes in the business environment. In addition, we have assigned the members of the board as persons in charge of execution to increase effectiveness. This slide shows the overview. Details will be explained at the management briefing on May 27th. This concludes my presentation. Thank you very much.