Good evening. This is Hideki Somemiya, CFO of Showa Denko. Thank you very much for your continued interest in our business performance. I'd like to present the financial results of the second quarter FY 2022. Please turn to the presentation material entitled as a consolidated financial result, second quarter 2022. Page two shows three key points of this presentation. In the first half of the year, in addition to the positive impact of the yen's depreciation, strong sales in the Semiconductor and Electronic Materials segment continued, increased raw material cost was shifted to product prices to some extent. Due partly to the sluggish automobile production and sales decline caused by the effect of transfer of the businesses implemented in 2021, sales decreased to JPY 37.3 billion year-on-year.
Profit decreased year-on-year due to the absence of gain in graphite electrode business this year, which was caused by an application of the lower of cost or market accounting method in 2020. Within the ongoing businesses, which excludes the results of transferred businesses, sales increased and profit decreased. Second point is about the full-year forecast. We announced a revision of the full-year forecast yesterday. Under the assumption of the continued depreciation of yen, which is more than the initial forecast, reflecting the delay in the recovery of automobile production and the steep rise in raw material prices, we revised up the sales from the initial forecast, but kept operating income forecast unchanged at JPY 84 billion. Third point, with the plan of the integration of the corporate statuses in January 2023.
For the smooth reorganization, we purchased the preferred stock by financing through subordinated loan in June, earlier than scheduled, which was originally planned in the next year. Please turn to summary of the consolidated results on page three. Summary of the consolidated results are shown with a year-on-year comparison. As the table on the left shows, in the first half 2022, consolidated net sales were JPY 656 billion, down JPY 37.3 billion, or 5.4% year-on-year. Operating income was JPY 37.1 billion, down JPY 10.5 billion or 22% year-on-year. Ordinary income was JPY 46.8 billion, down JPY 3.4 billion or 6.7% year-on-year. Net income attributable to owners of the parent was JPY 31.7 billion, up JPY 45.1 billion year-on-year. The table on the right shows the comparison based on the ongoing businesses. Net sales were up JPY 65.7 billion, 11.1%.
Operating income was down JPY 2.4 billion, 6.1%. EBITDA was down JPY 1.8 billion, 1.9%. EBITDA margin was 13.9%, down by 1.8 points. Please turn to page four, operating income breakdown by factor. This chart shows the difference from operating income in January to June period in the previous year by factor. Operating income in the first half 2021 was JPY 47.6 billion, and excluding the profit of the business transferred later, it was JPY 39.5 billion. In the comparison based on the ongoing businesses, volume impact was plus JPY 2.5 billion and changes in raw material prices include a selling price hike. Net impact of the raw material cost increase minus selling price hike was plus JPY 4 billion. Last year, gain was posted due to the application of the lower of cost or market method in the graphite electrode business.
Due to its absence this year, the effect was negative, JPY 14.5 billion. Others, JPY 5.6 billion includes the expanded feedstock adjustment in graphite electrode business, shut down maintenance cost in Ōita, and energy cost increase. Operating income decreased JPY 2.4 billion year-on-year on ongoing businesses in total. Please turn to page five, summary of consolidated sales and operating income by segment. In Semiconductor and Electronic Materials segment, sales and profit increased with a continued strong demand in semiconductor-related industries. In Mobility segment, sales decreased and the business turned to be loss-making, affected by the automobile production decrease caused by the semiconductor supply shortage. In Innovation Enabling Materials and Chemicals segment, sales increased and the profit decreased due to the time lag between raw material price surge and passing of cost increase to selling prices.
These are the disclosure segment, as explained in the first quarter, others in the previous year includes the energy storage device and system, aluminum can, aluminum rolled products businesses, which was transferred in the previous fiscal year, and Shoko Co., Ltd., which was deconsolidated with reduced stakes. Page six to eight show the sales and operating income by segment. For details, please refer to the performance overview column later. Let me walk you through the highlight of the overview here. Page six, Semiconductor and Electronic Materials, sales increase of 12% and profit increase of 27%, backed by the strong demand. Mobility on page seven shows sales increase due to the demand of a part of automobile parts customers amid the sluggish automobile production. Sales decreased 3% due to the sales decrease in Lithium-ion battery Materials, and the segment turned to operating loss.
In Innovation Enabling Materials on page eight shows sales increase of 7% due to rise in material prices, profit decreased 35% due to insufficient cost pass on to the price. Chemicals segment had a shutdown maintenance in petrochemicals. Sales increased due to product price rise caused by naphtha price increase. Profit decreased in the first half year-on-year due to the volume decline caused by the shutdown maintenance. In April to June alone, profit temporarily increased due to the one-off feedstock adjustment related to low cost naphtha, which was procured before shutdown maintenance. Sales and profit increase in graphite electrode business year-on-year were not able to offset the negative factors in profit. As a segment total, sales increased 17%, profit decreased 32%.
We take profit and loss conditions of segments, except Semiconductor and Electronic Materials, seriously, we will strive farther to pass the cost increase to price and group-wide cost reduction. Please turn to page nine, non-operating income and expenses and extraordinary profit and loss year-on-year. Non-operating income and expenses improved JPY 7.1 billion, mainly due to the foreign exchange gains of the depreciation of yen. Extraordinary loss net decreased JPY 47.6 billion year-on-year. It improved substantially year-on-year as large expenses of JPY 9 billion of environmental cost and JPY 32.8 billion of business structure reform cost were posted in the previous year. Please turn to page 10, 2022 forecast for the full year. Yesterday, we released the full year forecast. In this fiscal year, net sales are revised up from the initial forecast due to the continued depreciation of yen and price hike.
Operating income is kept unchanged from the initial forecast due to the impact of raw material price increase and increase in energy cost and logistic cost, which may not be fully passed on to selling prices in the second half. Ordinary income is revised up from the initial forecast due to the valuation gain in foreign currency denominated assets and improvement in interest and dividend income, less interest expenses, and net income attributable to owners of the parent is revised up from the initial forecast. Considering that one of the improvement factors in the first half is a shift of a part of the structural reform cost to the second half, the full year upside is expected as shown here. Please turn to page 11, sales, operating income, and EBITDA forecast by segment. This is a full year forecast by segment.
Assuming the continued depreciation of yen, sales will increase with a raw material cost surge, and by pass-through of cost, a certain level of profit will be secured. We take the Mobility business turning to loss and overall margin decrease very seriously, and we will accelerate further actions going forward. Please turn to page 12, consolidated balance sheet. As of the end of this quarter, cash and deposit, goodwill, and other intangible fixed assets decreased. Partly due to the impact of raw material cost surge, inventories increased, and tangible fixed assets increased due to CapEx. As a result, total assets increased JPY 79.6 billion from the end of the previous fiscal year to JPY 2,222 billion. In June this year, we conducted the subordinated loan finance to purchase preferred stock RE, and that led to the increase in interest-bearing debt.
Total liabilities increased JPY 302.4 billion from the end of the previous fiscal year to JPY 1,626.4 billion. Despite the increase in foreign currency translation adjustment, non-controlling interest decreased substantially by the purchase of preferred stock, and the total net assets decreased JPY 222.8 billion from the end of the previous fiscal year to JPY 595.6 billion. As for the main indicators, net D/E ratio improved 0.05 points to 1.10 times, and the equity ratio improved 1.7 points to 25.7%. As described in the footnote, the assumption of 50% of the total value of preferred stocks and subordinated loan as equity capital is based on the credit rating given by Japan Credit Rating Agency. Our net D/E ratio is calculated based on this concept. Finally, please turn to page 13, balance trends of interest-bearing debt and preferred stock.
This slide shows a total of interest-bearing debt and preferred stock. LBO loan in yellow part was fully repaid before due date in March, and it was replaced by straight bond, among others. Preferred stock in orange was repurchased earlier than the schedule by the financing through the subordinated loan, which was also recognized as 50% equity capital. Interest-bearing debt increased in line with this, it works positively in cash outflow of dividend and interest payment. Net D/E ratio is as shown in the previous page. Page 14 and onward are reference. Page 22 shows the quarterly sales and operating income change in FY 2021 by new segment. Page 23 shows the quarterly profit change in this fiscal year. Please refer to them and other pages at your convenience. This concludes my presentation. Thank you very much for your attention.