Thank you very much for joining us today for our financial announcement. My name is Hajime Nakajima, CFO of Mitsui Chemicals. Today, we are pleased to announce our fiscal 2022 financial results and forecast for 2023. Unfortunately, operating income before special items for FY 2022 decreased by JPY 16.1 billion from the previous forecast of JPY 130 billion to JPY 113.9 billion, mainly due to negative factors such as decreased demand for ICT Solutions and Basic & Green Materials. However, despite the difficult business environment, the total of growth domains steadily expanded earnings from the previous year, and operating income before special items reached JPY 102.3 billion, a level exceeding JPY 100 billion.
In FY 2023, we expect earnings in growth domains to continue to increase and earnings in Basic & Green Materials to recover. Our forecast for operating income before special items is JPY 150 billion. We will steadily transform our portfolio to achieve the goals of the long-term management plan. I'd like to explain our business performance, business overview, financial statements, and others based on the materials provided. This slide describes trends in the key markets in each of our segments.
First, about Life & Healthcare Solutions. The eyeglass lens market grew steadily in FY 2022 and is expected to continue its steady growth in FY 2023. The agrochemical market also grew steadily in FY 2022, mainly in overseas markets, and is expected to continue to grow steadily in FY 2023.
For Mobility Solutions, the key is the outlook for global automotive production volume. Although there are regional differences, we expect a general recovery. For ICT Solutions, we expect demand in both the semiconductor and smartphone markets to continue to decline until the first half of FY 2023, with a gradual recovery beginning in its second half. Market conditions for chemical products in Basic & Green Materials remained low due to the softening supply and demand environment for phenol and bisphenol A. As we sold Mitsui Phenols Singapore in March 2023, volatility in earnings due to these market fluctuations will be reduced from FY 2023 onward. TDI is also expected to remain low, while MDI is to remain stable.
With regard to the cracker utilization rate, low utilization continued through the second half of FY 2022 due to weak demand, and the situation will remain similar through the first half of FY 2023. The utilization ratio is planned to improve from the second half of the fiscal year when demand is expected to recover. Status of major investment projects. Those with hatched colors are projects such as the start of commercial operation in FY 2022 and investments that have been decided. In the growth domain, the establishment of a joint venture, so for the nonwoven fabrics business, capacity expansion of eyeglass lens monomers, acquisition of the Pellicle business, and expansion of ICROS Tape capacity start contributing from FY 2023 onward.
In Basic & Green Materials, we have made decisions on restructuring measures for large-scale market products and are steadily taking steps to expand and stabilize our earnings. Consolidated financial highlights. Sales revenue for FY 2022 was JPY 1,879.5 billion, an increase of JPY 266.8 billion from the previous year. Operating income before special items was JPY 113.9 billion, a decrease of JPY 47.9 billion from the previous year. Net income attributable to owners of the parent was JPY 82.9 billion, a decrease of JPY 27.1 billion versus the previous year. The exchange rate was JPY 135, a depreciation of JPY 23 versus the previous year.
Domestic naphtha price per kiloliter was JPY 76,600, up JPY 20,000 from the previous year. The following is a summary of the year-on-year comparison of operating income before special items, which declined by JPY 47.9 billion. In terms of volume, 1, sales of vision care and agrochemicals remained strong. 2, although the global shortage of automotive parts remains, sales of automotive-related applications are recovering. 3, on the other hand, sales of semiconductor-related products declined due to a slowdown in demand in the semiconductor and smartphone markets. 4, sales of polyolefins and phenols also declined due to lower demand.
Regarding the terms of trade, 1, in general, terms of trade improved due to price revisions and the yen's depreciation. 2, overseas market for bisphenol A declined due to a softening supply/demand environment. 3, inventory valuation gains decreased due to a decline in prices of raw materials such as naphtha from the second quarter of FY 2022.
On the cost side, there was a rise in cost associated with higher repair costs due to soaring material prices and investment of resources in new products and business development. Looking at the results by factor of the JPY 47.9 billion decrease in profit over the previous year. The volume difference was minus JPY 19.4 billion, terms of trade was plus JPY 13 billion, and the fixed costs and others was minus JPY 41.5 billion. While the company as a whole saw a decrease in profit over the previous year, profit in the growth domain in total increased by JPY 14.0 billion to record JPY 102.3 billion.
Sales revenue and operating income before special items by business segment. As for sales revenue on the left, all segments reported an increase in revenue due to price revisions as a result of price hikes in response to higher raw material costs, total sales revenue increased by JPY 266.8 billion versus the previous year. While operating income before special items decreased, Life & Healthcare Solutions and Mobility Solutions posted higher profits due to increased sales volume and improved terms of trade. Although ICT Solutions reported a decrease in profit, mainly due to lower sales volume, these two segments contributed to a steady increase in profit, with the growth domain as a whole posting an increase of JPY 14 billion over the previous year.
The following pages provide a detailed explanation of the increase, decrease factors for each segment. Life & Healthcare Solutions reported operating income before special items of JPY 29.2 billion for FY 2022, an increase of JPY 4.3 billion versus the previous year. The volume difference was +JPY 4.7 billion. Sales volumes of vision care and agrochemicals increased steadily. Oral care sales were on par with the previous year. Terms of trade. Vision care was able to settle price adjustment negotiations, but still negative due to the timing difference. Nonwovens improved, and agrochemicals also improved thanks to the weaker yen. As a whole, terms of trade was +JPY 5.5 billion. Fixed costs, et cetera, were -JPY 5.9 billion, mainly due to increased fixed costs such as SG&A and R&D expenses in oral care and agrochemicals.
Mobility Solutions reported a significant increase in operating income before special items of JPY 49.3 billion in FY 2022, or an increase of JPY 16.1 billion versus the previous year. The volume difference was positive JPY 2.3 billion due to a recovery in automotive-related applications and a firm demand for solar cell encapsulants. Terms of trade was a plus of JPY 26 billion, reflecting the overall effect of price revisions, yen depreciation, and the shift to higher value-added products in elastomers. Fixed cost and others were minus JPY 12.2 billion due to an increase in fixed costs, including accelerated development of new products and businesses. In ICT Solutions, operating income before special items for FY 2022 was JPY 23.8 billion, down JPY 6.4 billion from the previous year.
The volume difference was minus JPY 9 billion. Although sales of EUV pellicles were strong, they were significantly affected by the decline in demand in the semiconductor and smartphone markets. Terms of trade were plus JPY 8 billion. This increase was mainly due to the depreciation of the yen, but there was also an improvement in terms of trade due to price revisions in the packaging area, such as coatings and engineering materials.
Fixed costs and others were minus JPY 5.4 billion due to increased fixed costs from new plant operations and accelerated development of new businesses and products. Basic & Green Materials reported operating income before special items of JPY 17.8 billion in FY 2022, a decrease of JPY 60 billion from the previous year. Volume difference was minus JPY 17.4 billion due to reduced sales of polyolefins and phenols.
Terms of trade was minus JPY 26.5 billion due to the significant negative impact of the decline in market prices, especially for bisphenol A, and the reduction in inventory valuation gain resulting from the decline in raw material prices from the second quarter. Fixed costs and others were minus JPY 16.1 billion, despite an increase in equity income from polyurethane due to a large decrease in equity in earnings from phenol due to a decline in market prices and an increase in fixed costs such as repair and maintenance expenses. Breakdown of non-recurring items.
Non-recurring items totaled JPY 15.1 billion, an increase of JPY 29.6 billion versus the previous year. This was due to the recording of a gain on the sale of Mitsui Phenols Singapore, a company we transferred shares this fiscal year after a large impairment loss recorded in the previous year in polyurethane. Statement of financial position.
Total assets amounted to JPY 2,068.2 billion, an increase of JPY 133.2 billion from the end of March 2022. There was an increase in non-current assets due to foreign currency translation differences resulting from the weaker yen and increased investments, the main reason was a large increase in inventories due to higher raw materials and fuel prices.
Statement of cash flows. Cash flows from operating activities were JPY 101.2 billion. Cash flows from investing activities were negative JPY 106.3 billion. As a result, free cash flows were negative JPY 5.1 billion. The JPY 98.9 billion decrease in investment cash flow versus the previous year was mainly because of active investments, such as acquisitions in the previous year and polyurethane-related cash inflows in FY 2022. Cash flow from financing activities was positive JPY 2.5 billion. Next, I will explain the outlook for FY 2023. This is highlights of consolidated financial outlook.
Sales revenue is expected to be JPY 1,900 billion, an increase of JPY 20.5 billion over the previous year. Operating income before special items is expected to be JPY 150 billion, an increase of JPY 36.1 billion from the previous year. Net income attributable to owners of the parent is expected to be JPY 100 billion, an increase of JPY 17.1 billion from the previous year. The exchange rate is expected to be JPY 135 for the full year, the same as the previous year. Domestic naphtha prices per kiloliter are expected to fall to JPY 72,000 for the full year, down by JPY 4,600 from the previous year. The following pages will explain in detail the factors behind the increase or decrease in profit or loss for each segment.
This is a summary of the year-over-year comparison of the outlook for operating income before special items, an increase of JPY 36.1 billion. In terms of volume, one, sales of vision care and agrochemicals continue to be strong. Two, automotive-related applications recover, and sales of solar cell encapsulants remain strong. Three, polyolefins sales volume is expected to increase due to recovery in demand. Four, for others, we generally expect an increase in sales volume in line with a recovery in demand. In terms of trade, one, raising prices in response to rising costs, mainly in utility and logistics costs. Two, decrease in income due to elimination of inventory valuation gains incurred in the previous fiscal year in FY 2023.
In terms of costs and etcetera, One, increased labor cost due to business expansion, higher repair costs reflecting soaring material costs, Increased costs due to the investment of resources in new product and business development and DX promotions. Two, on the other hand, the effect of business structure improvement in Basic & Green Materials is also expected. Taking these factors into account, of the JPY 36.1 billion increase over the previous year, we expect a large increase in volume, a JPY 46.5 billion increase in volume difference, a JPY 12 billion increase in terms of trade, and a JPY 22.4 billion decrease in fixed costs and others. The total for the growth domains is JPY 121 billion, an increase of JPY 18.7 billion over the previous year. We expect continued steady earnings growth.
Sales revenue and operating income before special items by segment. Both sales revenue and operating income before special items are expected to increase in all segments due to an increase in sales volume resulting from an overall recovery in demand. In total, sales revenue is expected to increase by JPY 20.5 billion, an operating income before special items by JPY 36.1 billion from the previous year. The following pages will explain in detail the factors behind the increase in profit for each segment. In the Life & Healthcare Solutions segment, operating income before special items is expected to be JPY 34 billion, an increase of JPY 4.8 billion from the previous year. Volume difference is positive JPY 10 billion. We expect volume growth overall, but particularly strong growth in vision care and agrochemicals.
Terms of trade are expected to be +JPY 2.5 billion, mainly due to the full realization of the negotiated results of Vision Care's price increase in FY 2022. Fixed costs and others are expected to be -JPY 7.7 billion due to the operation of new plants, an increase in SG&A expenses associated with sales expansion, and an increase in fixed costs such as R&D expenses. Mobility Solutions expects operating income before special items of JPY 54 billion, an increase of JPY 4.7 billion from the previous year.
The volume difference is projected to be +JPY 18 billion due to a recovery in automotive related applications and firm demand for solar cell encapsulant materials. Terms of trade are expected to be -JPY 4 billion, mainly due to the absence of gains from the time lag in PP compounds.
Fixed costs and others are expected to be -JPY 9.3 billion due to an increase in fixed costs, including an increase in labor costs for business expansion and a rise in repair costs due to soaring material prices. In ICT Solutions, operating income before special items is expected to be JPY 33 billion, an increase of JPY 9.2 billion from the previous year. Volume difference is positive JPY 10 billion. Overall sales volume will increase in line with demand recovery. As for the Pellicle business, EUV remains strong, and we also incorporate the effect of increased sales of DUV resulting from the acquisition of the business. Terms of trade are JPY 4.5 billion positive.
We expect the terms of trade to improve in semiconductors and optical materials due to increased sales of high value-added products and lower raw material prices in the packaging field, such as coating and engineering material. Fixed costs and others are expected to be -JPY 5.3 billion due to an increase in development and other fixed costs for business expansion.
Basic & Green Materials is expected to post operating income before special items of JPY 35 billion, an increase of JPY 17.2 billion from the previous year. Volume difference is +JPY 8.5 billion. Overall sales volume will increase in line with demand recovery. Terms of trade are expected to be +JPY 9 billion due to price increases in response to rising costs such as utility and logistics.
While there will be a decrease in profit due to the elimination of inventory valuation gains that occurred in FY 2022. As for fixed costs and others, a decrease in equity in earnings of affiliates is expected to almost offset the expected effect of business restructuring improvements. This graph shows, as I mentioned at the beginning, the changes in operating income before special items by segment.
You can see that we are making steady progress in our portfolio transformation by expanding earnings in our growth domains. To achieve our target of JPY 200 billion in operating income before special items in or near FY 2025, we will work to expand earnings in growth domains and reduce volatility. We will aggressively invest resources for future growth while maintaining financial discipline.
Excluding large-scale regular repair and maintenance expenses, which are treated as investments and loans under IFRS accounting standards, investments in FY 2023 are expected to total JPY 158 billion. R&D expenses are expected to total JPY 45 billion. Regarding the dividend forecast for FY 2023, based on our return policy, we plan to pay a dividend of JPY 140 per share, an increase of JPY 20 from the previous year. Lastly, the projected cash flow statement. Cash flow from operating activities is JPY 153 billion. Cash flow from investing activities is -JPY 138 billion. Free cash flow is expected to be +JPY 15 billion. Cash flow from financing activities is expected to be -JPY 23 billion.
This concludes my presentation of the summary of the financial results for FY 2022 and the forecast for FY 2023.