Ladies and gentlemen, this is Nakajima, CFO of Mitsui Chemicals. Thank you very much for joining us today at our online conference. Today, we have announced our financial results for the third quarter of fiscal year 2023, as well as our forecast for the full year. In the third quarter, due to general sluggish demand, continued weak semiconductor and smartphone demand and consumption, and falling raw material prices, both sales and profits declined year-over-year. The forecast for FY 2023 has been revised downward from the previous forecast of JPY 112.0 billion for operating income before special items to JPY 93.0 billion, as the sales volume is expected to decrease due to the fact that it is taking longer than expected for demand to recover and lower cracker utilization rates.
The net income forecast has also been revised downward to JPY 50.0 billion from the previous forecast, due to the decrease in operating income before special items and the recording of losses for business restructuring. On the other hand, the annual dividend forecast is expected to remain at JPY 140 per share. I would now like to explain our business performance, business overview, and financial statements based on the materials. This is our agenda today. First, I will provide an overview of the financial results for the third quarter of fiscal year 2023, followed by an overview of the forecast for fiscal year 2023. Please see page one. This section describes trends in the major markets related to our business during the fiscal period under review. First, the outlook for the eyeglass lens market for the life and healthcare segment.
Although there have been some inventory adjustments through the first half of the year, we expect the market to be strong from the third quarter onward, as inventory adjustments are resolved and demand recovers. In agrochemicals, inventory adjustments have occurred in some regions due to the effects of the weather, and demand has fallen from the previous forecast due to inventory adjustments and other factors. Next is the outlook for global automobile production volume related to the mobility segment. Compared to the previous year, global production volume is expected to recover despite the impact of the strike in North America and other factors. Compared to the previous forecast, we also expect an increase in overall global production volume, although there are differences by region.
In the semiconductor and smartphone markets related to ICT, demand continues to decline, but there are signs of a bottoming out, and the market is gradually recovering in the second half of the year. Market conditions for polyurethane related to Basic & Green Materials are expected to remain unchanged from the previous forecast. Cracker utilization rates have remained low since the first half of the year and are expected to decline from the previous forecast due to the lack of recovery in demand. See page two, Status of Major Investment Projects. Projects in yellow are those that will start commercial operation in the current fiscal year. Projects in blue are those that have been decided in the current fiscal year. The following are the developments since the last financial announcement. The decision has been made to suspend PET production in Japan. See page three, Consolidated Financial Highlights.
Sales revenue for the April-December period was JPY 1.2745 trillion, a decrease of JPY 154.4 billion versus the same period last year. Operating income before special items was JPY 72.4 billion, a decrease of JPY 37.9 billion versus the same period a year ago. Net income attributable to owners of the parent was JPY 37.3 billion, a decrease of JPY 27.6 billion versus the same period last year. The exchange rate was JPY 143 to the dollar, a depreciation of JPY 6 versus the same period last year. Domestic naphtha prices were JPY 68,000 per kiloliter, a decrease of JPY 12,000 versus the same period last year. See page four.
The following is a summary of Operating income before special items in the current financial results compared to the same period of the previous year. As for the volume, sales of Vision Care declined in the first half of the year due to inventory adjustment in some markets. Sales of automotive applications increased due to the recovery of automobile production.... Sales of semiconductor-related products declined due to a slowdown in demand in the semiconductor and smartphone markets. Sales of polyolefins and phenols also declined due to a drop in demand. Terms of trade. Terms of trade improved due to price revisions and the impact of yen depreciation. On the other hand, inventory valuation gains that occurred in the first half of FY 2022 due to raw material price changes were eliminated.
As for fixed costs and others, repair and maintenance costs increased due to soaring material costs, and development costs also increased. Equity in earnings of affiliates also declined due to deteriorating market conditions and lower demand. Looking at the results by factor, within the JPY 37.9 billion decrease in profit from the same period of the previous year, the volume difference was -JPY 19.2 billion. Terms of trade was +JPY 0.6 billion, and fixed costs and others were -JPY 19.3 billion. See page five, Sales revenue and operating income before special items by business segment. The following pages provide a detailed explanation of the increase and decrease factors for each segment. See page six.
Life & Healthcare Solutions reported operating income before special items of JPY 18.5 billion for the current period, a decrease of JPY 3.1 billion versus the same period last year. The volume difference was a negative JPY 5.2 billion. Sales declined in the first half of the year in Vision Care due to inventory adjustments in some areas. However, the adjustment was resolved from October onward. Sales of nonwoven fabrics declined, mainly for disposable diapers, due to decreased demand. Terms of trade improved by JPY 4.2 billion, partly due to price hikes in Vision Care and yen depreciation in agrochemicals. See page seven. In Mobility Solutions, operating income before special items for the current period was JPY 41.0 billion, an increase of JPY 2.1 billion versus the same period a year ago.
Volume variance was + JPY 2.3 billion, mainly due to growth in solar cell encapsulant materials and the volume growth associated with recovery in automotive applications. Terms of trade was + JPY 4.6 billion, reflecting the overall effect of exchange rate differences and the shift to high value-added products in elastomers. Fixed costs and others were negative JPY 4.8 billion, mainly due to a decrease in equity in earnings of affiliates. See page eight. In ICT Solutions, operating income before special items for the current period was JPY 18.1 billion, a decrease of JPY 4.9 billion versus the same period last year. The volume difference was a negative JPY 4.3 billion due to the significant impact of slowing demand in the semiconductor and smartphone markets, despite strong sales of EUV pellicles and coating and engineering materials.
Terms of trade were +JPY 4.4 billion. In addition to the positive effect of foreign exchange, terms of trade improved due to lower raw material prices in coating and engineering materials. Fixed costs and others were -JPY 5.0 billion due to increased development costs for sales expansion. See page nine. Basic & Green Materials posted -JPY 3.9 billion in operating income before special items for the current period, a decrease of JPY 33.7 billion versus the same period last year. The volume difference was -JPY 12.0 billion due to lower sales amid generally sluggish demand. Terms of trade was -JPY 12.6 billion due to the significant impact from the elimination of inventory valuation gains that occurred in the first half of FY 2022 as a result of raw material price changes.
Fixed costs and others were -JPY 9.1 billion, mainly due to a deterioration in equity in earnings of affiliates. See page 10, Non-recurring items. Non-recurring items totaled -JPY 12.4 billion, a decrease of JPY 9.1 billion versus the same period last year. This was mainly due to the impairment losses as a result of restructuring in packaging film business. See page 11, Consolidated Statement of Financial Position. Total assets amounted to JPY 2.1626 trillion, an increase of JPY 94.4 billion from the end of March 2023. Total assets increased mainly due to the impact of yen depreciation, as well as business acquisitions and other factors. See page 12, Consolidated Statement of Cash Flow.
Cash flows from operating activities were positive JPY 115.0 billion, as working capital improved significantly from the previous year. Cash flows from investing activities were - JPY 69.8 billion, the same level of capital expenditures as the previous year. As a result, free cash flows were + JPY 45.2 billion. Cash flows from financing activities were -JPY 23.7 billion. Next, I will explain the outlook for FY 2023. See page 13, Highlights of Consolidated Financial Outlook. For the full year, sales revenue is expected to be JPY 1.741 trillion, a decrease of JPY 138.5 billion from the previous year. Operating income before special items is JPY 93.0 billion, a decrease of JPY 20.9 billion from the previous year.
Net income attributable to owners of the parent is expected to be JPY 50.0 billion, a decrease of JPY 32.9 billion from the previous year. The exchange rate is assumed to be JPY 144 to the US dollar for the full year, a depreciation of JPY 9 against the US dollar from the previous year. Domestic naphtha price is expected to be JPY 71,900 per kiloliter in the second half, and JPY 68,700 for the full year. See page 14, Highlights of Operating Income Before Special Items in Consolidated Financial Outlook. The situation up to the third quarter is not going to change significantly, but for the fourth quarter, compared to the large decline in the same period last year, profits are to be increasing mainly in the growth domain.
As for the volume, sales of Vision Care declined in the first half of the year due to inventory adjustments in some markets. Sales of agrochemicals continue to be strong. Sales of automotive applications increase due to recovery in automobile production. Sales of semiconductor application-related products decline due to slowdown in demand in the semiconductor and smartphone markets. Sales of polyolefins and the phenols also decline due to decreased demand. As for the terms of trade, terms of trade improved due to the progress of price revisions in line with higher utility and logistics costs, as well as the impact of yen depreciation. Inventory valuation gains that occurred in the first half of FY 2022 due to fluctuations in raw material prices were eliminated. Fixed costs and others are expected to be in the negative direction.
Although we have been enjoying the effects of business structure improvement, repair and maintenance costs have been increasing due to soaring material costs, and the development costs have also been rising. Equity in earnings of affiliates are also expected to deteriorate. Overall, the company expects a JPY 20.9 billion decrease in profit compared to the same period last year, of which volume difference is to be -JPY 5.5 billion, terms of trade is to be +JPY 3.5 billion, and fixed costs, et cetera, are to be -JPY 18.9 billion. On the other hand, in the growth domain, we expect profit is increasing mainly in the mobility segment, and the profit is forecasted to be JPY 111.0 billion, which is an increase of JPY 8.7 billion from the previous year.
The following pages will explain the reasons for the increase or decrease in each segment. See page 15. Life and Healthcare Solutions is forecasted to achieve JPY 30.0 billion in operating income before special items for the full year, an increase of JPY 0.8 billion versus the previous year. Volume difference is - JPY 1.0 billion. Despite an increase in agrochemical sales volume, volume is expected to decline, mainly due to the impact of first half inventory adjustments in Vision Care and lower demand for nonwoven fabrics. Terms of trade is expected to increase by JPY 4.5 billion. This is mainly due to the effect of price adjustments in Vision Care, as well as price increases and foreign exchange effects in agrochemicals....
Fixed costs and others are minus JPY 2.7 billion, mainly due to an increase in fixed costs associated with the operation of a new plant at Vision Care, and an increase in SG&A and R&D expenses associated with the expansion of agrochemicals. We expect a decrease in profit from the previous forecast, mainly due to lower sales in Vision Care, which was unable to recover the sales decline in the first half, and lower sales in agrochemicals due to inventory adjustments caused by weather effects. See page 16. In Mobility Solutions, full year operating income before special items is expected to be JPY 57.0 billion, an increase of JPY 7.7 billion versus the previous year. The volume difference is expected to be JPY 8.5 billion positive, with overall sales growth expected to be driven by growth in solar cell encapsulation materials and a recovery in automobile production.
Terms of trade is expected to be + JPY 7.0 billion , mainly due to the overall effect of exchange rate differences and the shift to high value-added products in elastomers. Fixed costs and others are expected to be - JPY 7.8 billion, due to an increase in fixed costs, such as development and repair expenses, and decrease in equity in earnings of affiliates. Although there will be a decrease in sales from the previous forecast due to a delay in the recovery of demand outside of automotive applications, there will be no change from the previous forecast as we strive to reduce fixed costs, et cetera. See page 17. In ICT Solutions, we project a full year operating income before special items of JPY 24.0 billion, an increase of JPY 0.2 billion versus the previous year.
The volume difference is expected to be -JPY 2.0 billion, and although sales of coating and engineering materials have been strong, sales are expected to decrease due to the significant impact of slowing demand in the semiconductor and smartphone markets. Terms of trade is +JPY 5.5 billion. This is mainly due to an improvement in terms of trade, resulting from the depreciation of the yen and the decline in raw material prices in the first half of the fiscal year in coatings and engineering materials. Fixed costs and others are expected to be -JPY 3.3 billion due to an increase in fixed costs, resulting from higher development costs and other factors. From the previous forecast, we expect a decrease in profit due to lower sales in the semiconductor and smartphone markets, which are recovering more slowly than expected. See page 18.
In Basic & Green Materials, the full year operating income before special items is expected to be -JPY 11.0 billion, a decrease of JPY 28.8 billion versus the previous year. The volume variance is -JPY 11.0 billion due to lower sales amid generally sluggish demand. Terms of trade is expected to be -JPY 13.5 billion due to the elimination of inventory valuation gains that occurred in FY 2022, despite the effect of price increases. Fixed costs and others are expected to be -JPY 4.3 billion due to a significant deterioration in equity in earnings of affiliates, despite the positive effect of business structure improvement. From the previous forecast, the profit is expected to decrease, mainly due to the impact of the continued slowdown in demand. See page 19. Next, I will explain the changes from the third quarter results to the fourth quarter forecast by segment.
Since the third quarter results were JPY 30.4 billion, and the fourth quarter forecast is JPY 20.6 billion, which means that we expect a JPY 9.8 billion decrease in profit from the third quarter to the fourth quarter, while we expect a JPY 5.3 billion increase in profit for the growth domain as a whole. By segment, we expect an increase in profit due to volume growth, mainly in life and healthcare and mobility. Life and healthcare, which accounts for a large portion of the increase in profit in the growth domain, is growing its domestic sales due to the recovery of the Vision Care business and the increase in domestic sales of agrochemicals due to its high demand season in the domestic market.
Basic & Green Materials is expected to decrease profit by JPY 10.3 billion due to an increase in fixed costs caused by taxes and dues, in addition to the impact of inventories resulting from a decline in raw material prices. See page 20. Finally, let me explain the projected cash flows for the full year. Cash flows from operating activities are to be + JPY 130.0 billion. Cash flows from investing activities are expected to be -JPY 106.0 billion. As a result, free cash flow is to be positive JPY 24.0 billion. Please also refer to the appendix on page 21 onward. That's all for the explanation about the results for third quarter of FY2023 and outlook for full year FY 2023. Thank you very much for your kind attention.