Ladies and gentlemen, this is Nakajima, CFO of Mitsui Chemicals. Thank you very much for joining in our earnings announcement today. Today, we announced our financial results for the first half of fiscal year 2024 and our financial forecast for fiscal year 2024. Operating income before special items for the first half of the year increased 26%, or JPY 10.8 billion, compared to the same period of the previous year to JPY 52.8 billion, exceeding the previous forecast. In the specialty chemicals domains, sales volume remained firm overall, and terms of trade improved primarily due to foreign exchange impact, resulting in an 11%, or JPY 5.5 billion, increase in operating income before special items.
In Basic & Green Materials, while there was a negative impact of around JPY 7 billion from the failure at the ethylene plant in Osaka Works, operating income before special items improved thanks to sales price increases, inventory valuation gains, and effects of business restructuring. Regarding our financial forecast for fiscal year 2024, we have revised operating income before special items for the entire group from our previous outlook of JPY 125.0 billion to JPY 105.0 billion. This is mainly due to the negative effect of the Osaka ethylene plant failure of approximately JPY 11 billion. However, compared to the previous year, we expect operating income before special items to increase 9%, or JPY 8.8 billion. In Basic & Green Materials, while the impact of the ethylene plant failure remains, we expect operating income before special items to increase compared to the previous year, as we work to implement sales price increases and business restructuring.
Although we have revised our operating income before special items forecast, our dividend outlook remains at JPY 150 per share for the full year, an increase of JPY 10 from the previous year. I would now like to explain an outline of our performance, business overview, and financial statements based on the materials provided. This is today's agenda. First, I will provide an overview of the results for the first half of fiscal year 2024, followed by an overview of the outlook for fiscal year 2024. In accordance with the organizational reform implemented on April 1st, 2024, we have revised the segments to which Honshu Chemical Industry Co., Ltd. and certain other consolidated subsidiaries and equity method affiliates in ICT Solutions and Basic & Green Materials belong. Additionally, the segments for fiscal year 2023 are disclosed based on the reportable segment classifications after the revisions. Please see page one.
This section describes trends in the major markets related to our business during the fiscal period under review. First, here is the outlook for the eyeglass lens market in relation to Life & Healthcare Solutions. We expect the demand to remain firm in fiscal year 2024. In relation to the agrochemicals market, although there still remain the effects of inventory adjustments in some regions, we expect firm demand to continue. Next is the outlook for global automobile production volume related to Mobility Solutions. In the first half of fiscal year 2024, automobile production volume decreased in all regions, except for China, compared to the same period of the previous year. In the second half of the year, we expect production volume to remain firm, mainly in China and North America.
In the semiconductor and smartphone markets related to ICT Solutions, demand recovered gradually in the first half of fiscal year 2024. However, we are aware that the recovery of semiconductors is uneven depending on their applications. AI-related applications are doing well, but consumer, industrial, and automotive applications remain sluggish. As for Basic & Green Materials, operating rates were low in the first half of fiscal year 2024 and are expected to remain low in the second half. This is because demand is not expected to recover from fiscal year 2023, coupled with the effects of the delay in restart of the ethylene plant in Osaka Works. Please see page two. This is about the status of our major investment projects. The items in yellow are projects that start commercial operation in fiscal year 2024. Those in blue are projects for which decisions were made in fiscal year 2024.
In addition to investing in the specialty chemicals domains, we will also be active in restructuring and optimization. Please see page three. This is the summary of our financial results for the first half of fiscal year 2024. Sales revenue for the first half of fiscal year 2024 was JPY 890.4 billion, an increase of JPY 66.7 billion compared to the same period of the previous year. Operating income before special items increased by JPY 10.8 billion year-on-year to JPY 52.8 billion. Net income attributable to owners of the parent was JPY 22.2 billion, an increase of JPY 1.5 billion year-on-year. The exchange rate was JPY 153 to the dollar, representing a depreciation of JPY 12 year-on-year. The domestic naphtha price per kiloliter was JPY 77,950, an increase of JPY 12,400 year-on-year. Please see page 4. This is the summary of a year-on-year comparison about operating income before special items in the first half of fiscal year 2024.
In terms of volume, sales of Vision Care increased as the effects of inventory adjustments in fiscal year 2023 were resolved. Sales of agrochemicals also increased overseas. Sales of elastomers increased mainly for automotive applications, and sales of semiconductor applications increased due to a recovery in demand in the semiconductor and smartphone markets. Terms of trade improved due to sales price revision and yen depreciation, and inventory valuation gains were also recorded due to rising raw material prices. As for fixed costs and others, repair and maintenance costs increased due to soaring labor and material costs, and logistics and storage costs also increased. On the other hand, although the effect of business restructuring is not significant, it is steadily contributing to profits.
Looking at the results by factor, within the JPY 10.8 billion increase in operating income before special items compared to the same period of the previous year, volume difference was +JPY 12.2 billion, terms of trade were +JPY 13.0 billion, and fixed costs and others were -JPY 14.4 billion. Please see page five. Sales revenue and operating income before special items by segment. The following pages provide a detailed explanation of the increase or decrease factors for each segment. Please see page six. Life & Healthcare Solutions reported operating income before special items of JPY 15.7 billion in the first half of fiscal year 2024, an increase of JPY 4.5 billion compared to the same period of the previous year. Volume difference was +JPY 4.3 billion, mainly due to the elimination of inventory adjustments in Vision Care business in fiscal year 2023 and firm overseas sales of agrochemicals.
Terms of trade improved by JPY 2.7 billion, partly due to the impact of yen depreciation in agrochemicals. Fixed costs and others were -JPY 2.5 billion, mainly due to an increase in fixed costs associated with the operation of a new plant in Vision Care and increased costs associated with sales expansion in agrochemicals. Please see page seven. Mobility Solutions reported operating income before special items of JPY 28.8 billion in the first half of fiscal year 2024, an increase of JPY 1.9 billion compared to the same period of the previous year. Volume difference was +JPY 6.3 billion, mainly due to volume growth associated with the recovery of elastomers for automotive applications. Terms of trade were -JPY 1.0 billion.
Overall, although there were positive effects from exchange rate differences and gains from time lag in PP compounds, terms of trade worsened compared to the previous year due to a temporary easing of supply and demand in elastomers. Fixed costs and others were -JPY 3.4 billion, due to an increase in repair and maintenance costs and other expenses. Please see page eight. ICT Solutions reported operating income before special items of JPY 12.0 billion in the first half of fiscal year 2024, a decrease of JPY 0.9 billion, compared to the same period of the previous year. Volume difference was +JPY 2.5 billion, with sales volume increasing due to the recovery of the semiconductor and smartphone markets. Terms of trade were +JPY 1.2 billion, mainly due to foreign exchange impact.
Fixed costs and others were -JPY 4.6 billion, due to an increase in fixed costs associated with the operation of a new plant for ICROS Tape, which is an industrial film, development costs aimed at expanding sales, and costs associated with the restructuring of the packaging film business. Please see page nine. Basic & Green Materials posted -JPY 2.6 billion in operating income before special items for the first half of fiscal year 2024. Although there was a negative impact of around JPY 7 billion from the Osaka ethylene plant failure, operating income before special items improved by JPY 6.1 billion, compared to the same period of the previous year. We have not seen a significant improvement in volume difference due to continued sluggish demand. Terms of trade improved by JPY 10.1 billion, due to inventory valuation gains resulting from fluctuations in raw material prices, as well as steady progress in sales price revision.
Regarding fixed costs and others, repair and maintenance costs have increased due to rising labor and material costs, but there also have been positive benefits from business restructuring. Please see page 10. This is non-recurring items. Non-recurring items totaled -JPY 6.8 billion, an improvement of JPY 4.0 billion, compared to the same period of the previous year. The breakdown for fiscal year 2023 includes the impairment losses as a result of separation of Mitsui Chemicals Tohcello, Inc.'s packaging film business and partial transfer of its shares in ICT Solutions. The breakdown for fiscal year 2024 includes the impairment losses associated with business restructuring. Please see page 11. This is the consolidated statement of financial position.
Total assets were JPY 2,103.3 billion, a decrease of approximately JPY 100 billion compared to the end of March 2024, mainly due to a decrease in trade receivables associated with the appreciation of the yen and a decrease resulting from the transfer of shares in the packaging film business, etc. Please see page 12. This is the consolidated statement of cash flows. Cash flows from operating activities were + JPY 118.0 billion. Compared to the same period of the previous year, we saw improvements mainly in working capital in addition to improved profit levels. Cash flows from investing activities were -JPY 48.3 billion. Although there were cash inflows from the sale of the Singapore Phenols business last fiscal year, the cash flows from investing activities for this fiscal year increased by JPY 12.8 billion year-on-year. As a result, free cash flows were + JPY 69.7 billion.
Cash flows from financing activities were -JPY 104.5 billion, due to the repayment of commercial paper and other factors. Next, I will explain the outlook for fiscal year 2024. Please see page 13. This is the highlights of consolidated financial outlook. Regarding the outlook for the full fiscal year, we expect sales revenue to be JPY 1,770.0 billion, an increase of JPY 20.3 billion compared to the previous year. Operating income before special items is expected to be JPY 105.0 billion, an increase of JPY 8.8 billion from the previous year, and net income attributable to owners of the parent is expected to be JPY 56.0 billion, an increase of JPY 6.0 billion from the previous year. The exchange rate for the year is expected to be JPY 149, a depreciation of JPY 4 from the previous year. The domestic naphtha price is expected to be JPY 75,500 per kiloliter, an increase of JPY 6,400 from the previous year.
Please see page 14. This is the summary of our forecasts of operating income before special items for the fiscal year. Compared to the previous year, we expect operating income before special items to increase due to increases in sales volume and the impact of yen depreciation in the specialty chemicals domains, as well as improved terms of trade sales price revision and inventory valuation gains in Basic & Green Materials. However, fixed costs and others are expected to be negative, even with the potential benefits of business restructuring, due to anticipated increases in repair and maintenance costs resulting from rising material prices and increases in R&D and other costs.
Consequently, the projected increase in operating income before special items of JPY 8.8 billion over the previous year is attributable to a number of factors, including a positive volume difference of JPY 30.5 billion, a positive terms of trade impact of JPY 2.0 billion, and a negative impact of fixed costs and others of JPY 23.7 billion. The explanation is not significantly different from the financial results for the first half of fiscal year 2024, so I will omit the details. Please see page 15. This is our outlook for sales revenue and operating income before special items by segment. The following pages will provide an explanation of the factors behind the increase or decrease in each segment. Please see page 16. Life & Healthcare Solutions operating income before special items for the full year is expected to be JPY 36.0 billion, an increase of JPY 6.0 billion from the previous year.
Volume difference is expected to be +JPY 10.0 billion. This is mainly due to the elimination of fiscal year 2023 inventory adjustments in Vision Care and a steady increase in the sales volume of agrochemicals overseas. Terms of trade are expected to be +JPY 2.0 billion. This is mainly due to yen depreciation. Fixed costs and others are expected to be -JPY 6.0 billion, due to an increase in fixed costs associated with the operation of a new plant in Vision Care and an increase in SG&A and R&D expenses, mainly registration and maintenance expenses, associated with the expansion of agrochemicals. Please see page 17. Mobility Solutions operating income before special items for the full year is expected to be JPY 55.0 billion, a decrease of JPY 2.7 billion from the previous year. Volume difference is expected to be +JPY 8.5 billion, due to expanded sales of elastomers for automotive applications.
Terms of trade are expected to be -JPY 6.0 billion, due to the impact of a temporary easing of supply and demand in elastomers, although there will be a positive impact of gains from time lag in PP compounds and yen depreciation. Fixed costs and others are expected to be -JPY 5.2 billion. Please see page 18. ICT Solutions operating income before special items for the full year is expected to be JPY 29.0 billion, an increase of JPY 5.4 billion from the previous year. Volume difference is expected to be +JPY 10.5 billion. Sales volume is expected to increase in line with the recovery of demand in the semiconductor and smartphone markets. Terms of trade are expected to be +JPY 1.0 billion, mainly due to yen depreciation.
Fixed costs and others are expected to be -JPY 6.1 billion due to an increase in fixed costs associated with the operation of a new plant for ICROS Tape, which is an industrial film, costs for business expansion, and fixed costs and others associated with the restructuring of the packaging film business. Please see page 19. Due to the impact of the ethylene plant failure, Basic & Green Materials operating income before special items for the full year has been revised downward from the figure announced in May to a loss of JPY 10.0 billion, but is expected to represent an improvement of JPY 1.6 billion compared to the previous year. Volume difference is expected to be +JPY 1.5 billion, but demand continues to be sluggish, and we do not expect a significant recovery.
Terms of trade are expected to be +JPY 5.0 billion due to the elimination of inventory valuation losses incurred in fiscal year 2023 as a result of raw material price fluctuations and inventory valuation gains in fiscal year 2024, in addition to sales price revision due to higher utilities and logistics costs. Fixed costs and others are expected to be - JPY 4.9 billion, due to an increase in repair and maintenance costs resulting from higher labor and material costs, despite the positive effect of business restructuring. Please see page 20. Next, I will explain the changes from the first half results to the second half forecast by segment. The first half result was JPY 52.8 billion, and the second half outlook is JPY 52.2 billion, which means that we expect a JPY 0.6 billion decrease in operating income before special items from the first half to the second half.
We expect an increase of JPY 7.0 billion in the specialty chemicals domains overall, mainly in Life & Healthcare Solutions and ICT Solutions. In Life & Healthcare Solutions, we expect profit to increase mainly due to an increase in sales volume in the agrochemicals business resulting from seasonal differences, and in ICT Solutions, we expect profit to increase due to an increase in sales volume in line with market recovery. Meanwhile, in Mobility Solutions, we expect profit to decrease due to factors such as worsening terms of trade with the disappearance of gains from time lag in PP compounds, although sales for automotive applications are expected to increase. In Basic & Green Materials, although we expect benefits from the implementation of sales price revision, we expect profit to decrease due to the elimination of inventory valuation gains, levies, and a deterioration in equity in earnings of affiliates. Please see page 21.
This is the cash flow forecast for the full year. Cash flows from operating activities are expected to be +JPY 190.0 billion. Cash flows from investing activities are expected to be -JPY 175.0 billion, resulting in free cash flows of +JPY 15.0 billion. That's all for the explanation about our financial results for the first half of fiscal year 2024 and our outlook for fiscal year 2024. Thank you very much for your kind attention.