Thank you very much for joining us today despite your busy schedule. On behalf of Toray Group, I'd like to take this opportunity to extend my gratitude toward your continued understanding and your interest in our management and business activities. Now I'd like to report today's business results for the fiscal year ended March 2022, and the business forecast for the fiscal year ending March 2023. This is a summary of the business performance and forecast. I'd like to explain the details starting from next page. I'd like to begin with an overview of business results for fiscal year ended March 2022. Revenue for the fiscal year ended March 2022 increased 18.3% to JPY 2,228.5 billion compared with the previous fiscal year.
Core operating income increased 46.3% to JPY 132.1 billion. Net income increased 83.9% to JPY 84.2 billion. As for annual dividend, the company anticipates to pay JPY 16 per share of common stock. ROE was 6.4%, while ROA was 4.5%. Special items for the period improved by JPY 2.9 billion to -JPY 31.5 billion compared with the previous fiscal year. This page is about assets, liabilities, equity, and free cash flow. As of end of March 2022, total assets stood at JPY 3,043.9 billion, up JPY 195 billion from the end of the previous fiscal year, mainly due to increases in trade receivables and inventories.
Total liabilities increased JPY 17.7 billion from the end of previous fiscal year to JPY 1,544.2 billion, owing mainly to increases in trade payables, while bonds and borrowings declined. Total equity came to JPY 1,499.6 billion, up JPY 177.4 billion from the end of the previous fiscal year. Owner's equity was JPY 1,405.6 billion. Interest-bearing liabilities was JPY 935.7 billion, and D/E ratio was 0.67. Free cash flow was positive at JPY 81.1 billion. This graph describes the factor analysis of JPY 41.8 billion increase in core operating income for the fiscal year ended March 2022 on a year-to-year comparison.
The difference in quantity was +JPY 80.8 billion due to increase in sales and production with the recovery in economic activities. The net change in price was -JPY 29.1 billion. This was due to the rise in raw material prices compared with the previous fiscal year. We have been working to pass on the rise in raw material prices to the sales price, but this has not been enough to cover the price increase in raw materials. Cost variance, et cetera, was -JPY 14.6 billion, mainly due to increases in operating expenses from increases in logistics costs and expenses associated with the resumption of sales activities. Also, production fixed costs increased with the recovery in operating rates. This chart shows the revenue and core operating income results by segment.
I would like to explain the result of each segment from this page onwards. First, Fibers and Textiles. Revenue of the overall segment increased 16.3% to JPY 836.2 billion compared with the previous fiscal year, and core operating income rose 15.4% to JPY 42.2 billion. Recovery in demand was seen both in Japan and abroad, which led to a positive difference in quantity. The net change in price turned negative due to the increase in raw material prices compared to the previous fiscal year. Cost variance, et cetera, also turned negative with increase in operating expenses, production fixed costs, and other expenses. In apparel applications, some applications continued to be affected by COVID-19, while sport and outdoor applications performed strongly.
In industrial applications, while recovery was seen in some applications, the automotive applications were affected by the decline in automobile production volume. This page is the Performance Chemicals segment. Revenue increased 26.3% to JPY 910 billion compared with the previous fiscal year, and core operating income rose 35.8% to JPY 91 billion. Demand for display related and other applications was generally strong and difference in quantity was positive. I would like to explain the conditions of each business on the next page. Demand in resins business was strong overall, given the rebound from the COVID-19 and the recovery of the Chinese economy.
The chemicals business performed strongly with a recovery in the basic chemicals market as well as strong demand in fine chemicals. In the films business, while the battery separator films for lithium-ion secondary batteries were affected by the price decline, polyester films for optical applications and electronic components performed strongly. In the electronic and information materials business, all related demand increased. This page is a Carbon Fiber Composite Materials segment. Revenue increased 17.7% to JPY 215.2 billion compared with the previous fiscal year, and core operating income rose JPY 9.1 billion- JPY 1.6 billion. While being affected by the increase in raw material prices and the decline in the production rate of commercial aircraft, the sales of wind turbine blades in industrial applications continued to expand, and there was a growth in sports applications.
In addition, we proceeded with passing on the rise in raw material prices to the sales price. I'd like to explain the status of each application on next page. Aerospace applications were affected by the decline in the production rate at major customers due to the impact of COVID-19. In sports applications, demand for bicycles, fishing rods, and golf shaft applications for outdoor leisure remained strong, and there was a recovery in demand for indoor leisure such as ice hockey and badminton applications. In terms of regular tow products among industrial applications, demand for environment and energy-related fields led by compressed natural gas tank applications and automotive applications for super luxury cars in Europe saw a recovery. As for large tow products, shipment of wind turbine blades applications remained strong.
In the Environment and Engineering segment, revenue increased 3.0% to JPY 199.3 billion compared with the previous fiscal year, and core operating income rose 13.9% to JPY 16.5 billion. In the water treatment business, demand for reverse osmosis membranes and other products grew strongly, while shipments to some regions were affected by the COVID-19. Among domestic subsidiaries in the segment, an engineering subsidiary experienced increases in the shipment of some electronic-related equipment. This is the Life Science segment. Revenue declined 1.9% to JPY 52 billion compared with the previous fiscal year, while core operating income rose 6.0% to JPY 1.4 billion. In the pharmaceutical business, sales of pruritus treatment REMITCH were influenced by the introduction of its generic version as well as by NHI drug price revision.
In the medical devices business, shipment of dialyzer for hemodiafiltration grew strongly in Japan, and demand for other medical devices showed a recovering trend, primarily outside Japan. This page shows the business result for major subsidiaries and regions. At Toray International, sales of resins, films, chemicals, and electronic materials increased. At our subsidiaries in Southeast Asia, a recovery trend was seen in Fibers and Textiles market. Although some apparel applications continued to be affected by COVID-19. In the industrial applications, there was an impact from the production reduction of automobile and automotive applications. In the Performance Chemicals business, ABS resins saw a recovery in demand in the ASEAN market, and the spread remained steady as the sales price increased due to the efforts such as passing on the rise in raw material prices to the sales price and the tightening of the supply-demand balance.
At our subsidiary in China, in Fibers and Textiles business, there were signs of recovery in the sales of apparel applications. However, there was an impact from the rise in raw material prices and the increase in logistics costs. In the Performance Chemicals business, while the business was affected by COVID-19, demand in China recovered in the resins business. In addition, we worked to pass on the rise in raw material prices to the sales price. The chemicals business performed strongly. As for our subsidiaries in the Republic of Korea, the Fibers and Textiles business was affected by the rise in raw material prices and sales of nonwoven fabrics decreased due to the fall in demand for masks.
In the films business among the Performance Chemicals business, demand related to displays and electronic components in the consumer applications grew strongly, while there was an impact from the rise in raw material prices and increase in logistics costs. Battery separator films for lithium-ion secondary batteries were affected by falling sales prices. Next, I would like to explain the consolidated business forecast for the fiscal year ending March 2023. As for forecast for the fiscal year ending March 2023, the global economy, including Japan, is likely to continue its recovery with the rollout of coronavirus vaccines and progress in economic measures. However, the highly uncertain situation is expected to continue, giving concern regarding the impact of the resurgence in infections from variants, supply chain constraint caused by a shortage of parts and labor, logistics congestion, and prolonged situation in Ukraine.
Toray expects revenue of JPY 2,500 billion, core operating income of JPY 140 billion, and profit attributable to owners of parent of JPY 100 billion. In terms of annual dividend, the company anticipates to pay JPY 18 per share of common stock with a payout ratio of 29%. This page shows the consolidated business forecast for the fiscal year ending March 2023 by segment. This page shows the comparison of core operating income between actual result for fiscal year ending March 2022 and the forecast for fiscal year ending March 2023, with breakdowns into segments. The factors behind the differences are shown on the right side of the table. This page describes the trend in capital expenditures, depreciation and amortization, and R&D expenditures.
Capital expenditures for fiscal year ending March 2023 are expected to be JPY 148 billion, depreciation and amortization to be at JPY 121 billion, and R&D expenditures at JPY 76 billion. This is all I have to explain about the business results for the fiscal year ending March 2022 and the business forecast for the fiscal year ending March 2023. Next, I'd like to explain the progress of our medium-term management program, Project AP-G 2022, for the three years period from fiscal 2020 to fiscal 2022. AP-G 2022 has three basic strategies as the pillars, including global expansion in growth business fields, strengthening competitiveness, and strengthening the management foundation. I'd like to explain the progress using next slide and after.
From this page onwards, I'd like to explain global expansion in growth business fields. First, the GR project. Revenue from the Green Innovation businesses for fiscal 2021 was JPY 832.2 billion. Revenue increased from the previous fiscal year due to the growth in carbon fibers for wind turbine blades, water treatment membranes, et cetera, while carbon fibers for aircraft was sluggish. Overall, the Green Innovation business is on the track to recovery from the impact of COVID-19. The line graph on the left shows the gross profit margin of the Green Innovation business, which is higher than the group average. Next is the LI project. Revenue from the Life Innovation business was JPY 297.7 billion. Revenue increased from the previous fiscal year due to increase in shipment of nonwoven fabrics for hygiene applications and sports-related materials.
The gross profit margin of the Life Innovation business was also higher than the group average. Next is strengthening competitiveness. Toray Group conducts the group-wide project, Total Cost Reduction project, TCR project. The group reduced a total of JPY 59.3 billion in fiscal 2021, and the total cost reduction in fiscal 2020 and 2021 was JPY 126.7 billion. The breakdown for the two-year period is the following. Variable cost reduction was JPY 68.3 billion. Fixed cost reduction, JPY 49.4 billion. Innovation of production process was JPY 8.9 billion. This page is about strengthening the management foundation. The first approach is strengthening financial structure by improving cash efficiency.
As for the reduction of working capital, the company introduced the cash conversion cycle as an efficiency indicator for each business and conducted the CCC improvement activity. Free cash flow for the two years was JPY 194.8 billion, which already exceeded the target in fiscal 2022. The second approach is the business structure reform of low growth and low profitability businesses. In this approach, we determine target business and companies that fall below boundary value for sales growth and profitability, gain an understanding of the position and business environment of each business, conduct a numerical analysis, then carry out business and organizational structure reform in order to improve sales growth and profitability. The examples in the Fibers and Textiles business are shown on the slide.
This slide shows the difference between the fiscal 2022 forecast and the AP-G 2022 target in fiscal 2022, the final year of this medium-term management program. In a business environment over the last three years, the world economy has not made uniform recovery due to the spread of new variants of COVID-19, etc. Also, there is an increase in uncertainty due to the prolonged situation in Ukraine. We expect this will have an impact on the forecast in core operating income. The difference between AP-G 2022 target and fiscal 2022 forecast is -JPY 40 billion. Quantity is expected to be below the target for the Fibers and Textiles and Carbon Fiber Composite Materials business. Since these business involve preferences and passenger transport, which were affected by the changes of lifestyle and behavioral pattern caused by the COVID-19 pandemic.
Also, there is a variance in quantity for automotive-related materials, especially for battery separator films from the sluggish demand in the market due to issues such as supply constraints continuing in fiscal 2022. In addition, current raw materials and fuel prices remain at high levels, which is expected to have a negative impact on core operating income. We will continuously make efforts to proceed with passing on the rise in raw materials and fuel prices and improve our revenue. This concludes my presentation.