I am Keita Kato, President and Representative Director of Sekisui Chemical. Thank you for taking time out of your busy schedule to join our presentation on the new medium-term management plan. First, I would like to explain how we position the new midterm management plan, which covers the next three years leading up to FY 2025. This plan is an extremely important second step, positioned as a core midterm plan in realizing our long-term vision, which envisions the group's ideal form in 2030. First, let's review the previous midterm management plan. Page two illustrates the differences between our market assumptions at the time of formulating the previous midterm plan versus the actual. The box at upper left shows a projection on the impact of COVID-19. Under the previous plan, we assumed the impact of the pandemic to subside in the second half of FY 2020.
In reality, the impact lingered for three years until FY 2022. The global automobile production, indicated by the graph below, was impacted by COVID and shortage of semiconductors, among other factors. Although it took some time, the auto production recovered in FY 2022 to the level almost comparable to our original projection under the midterm plan. Smartphone shipments in the lower left was heavily impacted by the inventory correction during FY 2022 and fell short of our expectation under the midterm management plan. Looking closely at the new housing starts shown at upper right, detached houses for sale for first-time buyers remained firm. Domestic naphtha price soared well above our forecast since FY 2021, and the yen depreciated against both the US dollar and the euro. Page three is a summary of the previous midterm management plan.
In the previous midterm management plan, we achieved record high net sales, net income, and EBITDA by carrying out structural reforms and strengthening earnings power, overcoming the protracted impact of COVID. We believe that we have definitely enhanced their earnings power. In hindsight, I feel that as management, we were able to learn from and take advantage of the crisis caused by the pandemic. In addition, we were able to restore ROE to the 10% level and made progress to a certain extent in ROIC management. Although sales exceeded the management target set in the previous medium-term plan, mainly driven by the overseas business, the impact of waning demand, mainly due to the prolonged pandemic, put pressure on the business, and operating profit marked JPY 91.7 billion vis-a-vis the target of JPY 110 billion. Bottom half of the page illustrates the performance by segment.
High Performance Plastics Company, or HPP, posted an increase in profit exceeding the pre-pandemic level. HPP's result fell short of the profit target due to the downturn in aircraft demand attributable to COVID-19 and the deteriorating electronics market in FY 22. Housing Company was hit severely by protracted impact of COVID-19 and the sluggish housing market caused by general inflationary environment, as well as a surge in component costs, including that of steel and lumber, among others. The Housing Company undershot the profit target. Urban Infrastructure and Environmental Products Company, or UIEP, was significantly affected by the pandemic and soaring raw material prices, and as a consequence, fell short of the profit target, the company was able to renew the previous record high profit thanks to the continuous effort to improve the selling prices.
The Medical Business achieved record high profit and met the profit target under the previous midterm plan, thanks to the sales growth for COVID-19 diagnostics kits and further earning contribution from the new pharmaceutical ingredient business. Page four is an analysis of the factors behind the differences in actual net sales and operating profit from the projections in the midterm plan. Net sales exceeded the plan and reached a record high, driven by the overseas sales. On the other hand, operating profit was adversely impacted by the sharp rise in raw material prices, which was higher by JPY 63 billion against assumption. Despite our efforts for improvement in selling prices, CR activities, and fixed cost reduction to overcome these negative factors, we were unable to offset the impact of demand decline stemming from an economic slowdown, and the operating profit as a result fell short of the plan.
Below are the results and challenges of the 3 basic strategies. As the achievements, we made progress in the following agendas: structural reforms, committed improvement of selling prices, and addressing new business themes. In addition, we have been selected as one of the Global 100 Most Sustainable Corporations in the World Index for the sixth consecutive year. We continue to receive high external recognition for our ESG management. On the other hand, we also face challenges such as growth investment held back to a certain extent, not being able to execute M&A, and not achieving human resource KPIs. From page five, I'd like to walk you through the details of our new midterm management plan, Drive 2.0. Page six outlines the management policy and basic strategies. As basic strategies, we have set forth three initiatives to enhance corporate value.
To enhance corporate value, we strongly recognize the importance of fostering growth expectations and raising capital efficiency and profit efficiency based on the reliability of the management. In other words, based on the initiative of strengthening sustainability, we will create and acquire new businesses in the context of growth expectations and aim for steady growth of organic businesses and strengthen portfolio management in a pursuit to improve capital efficiency. Page seven illustrates the key points of the new midterm management plan. We have four main KPIs. First, we have set sales target of more than JPY 1 trillion for products to enhance sustainability as a KPI to increase the level of our contribution to solving social issues while achieving business growth at the same time. Second, we set operating margin target of over 8% to showcase our earnings power. The third KPI is EBITDA.
While accelerating strategic innovation to prepare ourselves for sustainable growth, we set an EBITDA target of JPY 175 billion to demonstrate our profit growth. The fourth KPI is related to talent management. The target is to have 60% of employees deemed as taking on challenges, a KPI intended to foster a culture of proactively taking on challenges. Page 8 indicates a review on the external environment as well as the market assumptions reflected in the new midterm plan. As the global economic environment is increasingly referred to as VUCA, we believe the economic outlook will continue to be difficult to predict and remain uncertain. We expect global automobile production to expand moderately as the impact of the chip shortage eases. We also assume the EV production to increase and would account for a quarter of total global production in 2025.
For smartphone shipments, we anticipate gradual increase from the second half of FY 2023. We believe that device performance will continue to be enhanced, but we do not expect a substantial pickup in demand. Housing starts in general is expected to continue to decline gradually, and houses for sale are also expected to be affected by the decline in the housing starts. The current price of naphtha has been hovering around JPY 66,000 per kiloliter, but we have formulated a plan based on the assumption that the price will be around JPY 85,000 per kiloliter in FY 2025. The numerical targets for the new medium-term management plan are presented on page 9.
The plan calls for net sales of JPY 1,410 billion, operating profit of JPY 115 billion, and net income of JPY 82 billion, all of which will be record highs for the group. EBITDA is expected to increase significantly to JPY 175 billion. We aim to raise the ROIC by approximately 1 percentage point to 8.5% and ROE to 11%. We plan to increase profits in each segment, with HPP driving the overall growth. The company presidents will explain the strategies for each segment later in the presentation. Page 10 illustrates the pathway toward achieving a target of JPY 115 billion increase in operating profit under the new midterm management plan. We will hedge against rising raw material prices by securing a firm spread, as we have done so in the previous medium-term plan.
As for fixed costs, we will proactively invest in human capital and strengthen our initiatives to prepare for growth by promoting DX and stepping up our efforts in new businesses such as perovskite solar cells. In terms of sales volume and product mix, we assume a certain level of market recovery. On top of that, by achieving a significant growth, mainly driven by HPP and the medical business, we aim to achieve the growth target of JPY 115 billion. Page 11 outlines our investment and financial strategies. We will continue to actively expand strategic investments with an eye toward growth, utilizing debt as needed. The table on the left shows the investment results of the previous midterm management plan and the investment plan under the new medium-term plan. In the previous plan, we prioritized structural reform considering the prolonged impact of COVID.
Hence, growth investments were held back to a limited scope. Having said that, we were able to steadily invest in growth areas such as production ramp-up of heat release materials and pharmaceutical raw materials, to name a few. For the new medium-term management plan, we expanded our strategic investment budget to JPY 450 billion, out of which JPY 300 billion will be allocated for M&A opportunities. The upper right graph shows how we allocate the cash earned in the previous midterm plan. The lower right graph shows how we intend to secure cash, including the expected three-year total operating cash flow of JPY 500 billion, as well as the divesture of cross-share holdings and using debt as needed. Even if we take borrowings of maximum JPY 400 billion, the debt-to-equity ratio is expected to be less than 0.5 times.
The cash earned will be allocated to each segment, as shown by the diagram. Out of the total amount of JPY 440 billion, which is the sum of CapEx, excluding M&A and R&D expenditures, more than 70% will be strategically allocated to the growth areas of HPP, medical, and new businesses. Through this focused allocation, we will further improve capital efficiency and profit efficiency, aiming for ROE of 11% and ROIC of 8.5%. Page 12 illustrates our shareholder return policy. At the recent financial results meeting, I explained about the dividend hike for this fiscal year and the share buyback program. In the new midterm management plan, we will strengthen our commitment to shareholder return as a management policy. The dividend payout ratio previously set at 35% or higher is now set at 40% or higher.
The total return ratio target remains unchanged from the previous plan at 50% or higher, but we have newly added the following statement. We will implement additional returns as appropriate, taking into account the investment progress under the medium-term management plan, cash position, and stock price. This indicates our continued resolve to step up the shareholder return. From page 13, let me show the details of the basic strategies. The chart on page 14 is a strategic area map that we have developed as a compass to achieve the long-term vision. In the new medium-term management plan, we will focus on expanding the enhancement areas in our existing businesses and advancing the innovation areas to create new innovations through fusion of internal and external collaboration.
Page 15 represents the 7 major themes positioned as key growing businesses categorized in the innovation areas as Basic Strategy One, Strategic Innovation, explained on the previous page. We aim to accelerate the commercialization of these opportunities and aim to start contributing to the group's business performance at an early stage by integrating core technologies internally and externally and leveraging on M&A opportunities. Page 16 illustrates Basic Strategy Two, Organic Growth. We will strengthen business portfolio management to accelerate the expansion of businesses positioned as growth drivers. We analyzed and evaluated all businesses from various perspectives, focusing on profitability, ROIC, and growth potential, while also taking into account strategic positioning and competitiveness from an ESG perspective. As shown on the right, the roles of each business were clearly defined, and we positioned 7 businesses as growth-driving businesses and 4 businesses as growth potential businesses.
We will concentrate the allocation of management resources to these businesses and will generate more than 90% of the incremental profit from these growth-driving and growth potential businesses under the midterm management plan. Page 17 is a snapshot of Basic Strategy 3, Strengthen the ESG Management Platform. Shown by the table, we have set materialities that are of high importance to our stakeholders in the group's management. Policies were put together for each materiality. We have defined the proactive approaches. We will further strengthen ESG management. Page 18 describes the key initiatives of particular importance in strengthening our ESG management platform. The first point is to strengthen our environmental initiatives. We will work to reduce GHG emissions as part of our climate change countermeasures. In the area of resource recycling, we have stipulated the material recycling rate as a new KPI.
We will also strengthen our efforts to address water risks. We plan to invest a total of JPY 40 billion by 2030 in these environmental initiatives. Next, I want to touch upon our investment in human capital. We will steadily implement the priority measures described on the page to place the right people in the right jobs. In addition to raising the base salary, we will invest JPY 12 billion over the 3 years under the new midterm plan in the areas of talent recruitment, talent development, reskilling, and improvement of the working environment. Furthermore, we have positioned business and human rights as a management issue for human rights initiatives and will reduce management risks through internal implementation. Page 19 will be the last page of my presentation.
As I mentioned at the outset, we have positioned this new medium-term management plan as an extremely important second step toward our long-term vision. We will shift our focus to the implementation of growth measures while continuing to augment the profitability of our businesses. This will conclude my part. Thank you very much for your attention. I am Ikusuke Shimizu, Company President of High Performance Plastics Company. Page 21 is a summary of the business performance under the previous midterm management plan. The table on the upper left shows the net sales for the 3 strategic fields. In FY 2022, the final year of the previous midterm plan, net sales reached JPY 404.1 billion, up by JPY 81.7 billion compared to FY 2019, and outperformed the medium-term plan by JPY 44.1 billion, partly thanks to the favorable currency market.
The graph at bottom left indicates the factors behind the increase and decrease in operating profit vis-a-vis the midterm plan. Although we offset the impact of the surging raw material costs through improvement in selling prices, the sales volume and product mix were affected by sluggish global market conditions, particularly in the electronics industry. Despite overachieving the target for fixed cost reduction and CR activities, we fell short of the profit target by JPY 3.8 billion. As part of the priority implementation measures shown in the upper right corner, we executed JPY 25.3 billion of strategic investment, mainly for capacity expansion.
We also believe that we were able to enhance our earnings power to the level exceeding the original plan, thanks to the structural reforms carried out as part of the supply chain cost innovation and improvement in profitability at Sekisui Aerospace and other businesses. As indicated in the lower right-hand corner as results and challenges, we offset the impact of soaring fuel costs by improving selling prices, CR activities, and other measures. We have strengthened the earnings power by improving the cost base through supply chain cost innovation. Progress in the sales expansion of strategic products such as high-performance interlayer films has also been a major achievement. GHG emissions were reduced by 21% from 2019, which was also an achievement that exceeded the plan.
On the other hand, the sales growth in the three strategic fields was slightly pushed back due to the weakness in global market, especially in the second half of FY 2022, which is something that we need to reflect on. Next on page 22, I'd like to share HPP's new medium-term management plan and the targets for FY 2025. The bar graph on the left represents a plan which calls for a net sales of JPY 473 billion for FY 2025, an increase of JPY 76.6 billion from FY 2022. On the right is a chart showing the factors behind the change in operating profit.
While fixed costs are expected to increase due to investment for future growth and human capital, we plan to achieve a significant jump in both sales and profit by securing the spread through better selling prices, mainly in the mobility field such as interlayer film and aerospace business. Improvement in sales volume and product mix of the new strategic fields, particularly in mobility and electronics, will also contribute to a significant increase in sales and profit. Sales targets and KPIs with three new strategic fields are presented on page 23. The focus for the electronics field on the far left remains intact. We will continue to strive to grow the sales in the non-LCD field, such as semiconductors and electronic parts, exterior parts and mechanical components, and next-generation display products.
In particular, we will focus on expanding sales of tapes for semiconductor processing, binder resins for MLCCs, Build-up Dielectric Films, and bio-related products in order to achieve sales growth of JPY 18.8 billion over the three years, as indicated by the blue bar at the bottom. For your reference, we are currently investing in capacity ramp-up of binder resins for MLCC, and the operation is scheduled to start from FY 2025. In the center is the mobility business, for which we aim to expand sales of high-value added products, focusing on high-performance interlayer films. We also expect profitability gains at SEKISUI AEROSPACE CORPORATION with our outlook of higher sales on the back of demand recovery for aircraft-related products. Mainly driven by these factors, mobility will drive HPP's overall profit growth.
For the high-performance interlayer films, we will expand sales of interlayer films for head-up display and for thermal and design-based interlayer films, mainly targeting EVs. As shown in the line graph below, we plan to achieve 4% growth in FY 2025 compared to FY 2022. In particular, sales volume of HUD interlayer film are expected to grow by more than 30%. For the heat-release materials business, we will leverage a production base in the US, which is scheduled to start operation in the second half of this year to expand the sales of heat-release materials for EVs, mainly in Europe and the US.
Second source space will accelerate productivity improvement and product platform reforms so that the entity will be profitable in FY 2024 on a consolidated basis and start to make profit contribution to the HPP company in FY 2025. The industrial field is shown on the far right. Here our focus is achieving stable earnings rather than big growth, and we will further strengthen our earnings base by measures including enhancing the profitability of general purpose products. At the same time, we will endeavor to expand labor saving and environmentally friendly products as strategic products. As indicated by the line graph below, we plan to achieve 30% growth for such products compared to FY 2022.
We will expand overseas sales of clean containers as one of the synergies of the portfolio reorganization with UIEP, and for sensing devices, we'll expand the application to the nursing care and clinical fields. On page 24 are the KPIs. Regarding expanding sales of prioritized products, we will put our utmost focus on the business as we engage in activities. In the area of heat release materials, we will steadily capture global EV demand and increase sales by approximately JPY 10 billion over fiscal 22 to JPY 19.6 billion. By doubling sales, we will focus on expanding the business so it can become another pillar in our divisional company.
Also, for Build-up films, we have been highly regarded by customers for its high transmission performance, and we will continue to promote activities to achieve full-scale commercialization of this business with sales of JPY 3.2 billion in fiscal 2025. Regarding supply chain cost innovation at the top right, we will continue with our efforts from the previous midterm plan, and as a second step, we'll strive to increase profit by JPY 11.3 billion by fiscal 2025 compared to fiscal year 2022. In terms of GHG reduction, we achieved a 21% reduction in fiscal year 2022 compared to fiscal 2019, which was faster than planned. We are aiming for a 30% reduction in electricity-originated GHG emissions in fiscal year 2025 using renewable energy.
We will also start full-scale efforts to reduce GHG emissions originating from heat, such as steam and gas, to achieve a 50% reduction by 2030. Page 25 is the last page for the HPP divisional company, which shows our business performance. Just to repeat, in the new midterm plan, we are planning for JPY 61 billion operating income, ROIC of 12% and operating margin of 12.9% in fiscal year 2025. All targets are expected to significantly improve from fiscal year 2022. Operating profit is expected to increase by JPY 20.9 billion. We intend to achieve these targets by expanding our three new strategic fields centering on the mobility field and by strengthening earnings power. We will strive to drive the overall company's growth as a highly profitable divisional company. That is all from me. Thank you very much.
I am Toshiyuki Kamiyoshi, divisional company president of the Housing Company. I will go straight into my explanation. First, on page 27 is a summary of the previous midterm plan. Despite rapid changes in the market environment such as COVID-19 and inflation and other factors, we were able to achieve steady growth in areas of focus such as subdivision and ready-built housing, real estate and town and community development businesses, net sales grew close to plan. On the other hand, operating profit fell substantially below plan owing to a decline in the number of houses sold and soaring raw material prices. Regarding the analysis of operating profit in the middle right, the number of houses sold in the housing business fell short by 1,580 units compared to the plan of 12,000 units.
Other than that, considering the JPY 15 billion impact from the increase in components and others, we worked to raise the average sales price by upselling smart technology, etc., as well as reducing cost and field cost by leveling out and improving productivity. We were short by JPY 10.5 billion. This amount is almost equal to the shortfall in the total divisional company performance. At the bottom is a summary of basic strategies and measures as well as results and challenges. Regarding challenges for the housing business, we believe that our growth measures were appropriate. Amid rapid changes in the market environment, there were delays in building a structure internally and responding with speed that caused profitability to deteriorate.
As the market continues to mature, as we feel the need to build a structure that has a long-term perspective, it is an important theme under the new medium-term management plan. Turning to page 28. Here are the targets for the new midterm plan for fiscal 25. In terms of direction in the housing business, the utmost focus will be on improving profitability based on the challenges of the previous midterm. In other businesses, we will accelerate growth by strengthening resources centering on the frontier domains so that it can drive the business expansion of the divisional company. As for net sales by business on the left, we are targeting an increase of JPY 10 billion and a CAGR of about 1% for new housing. We will continue to focus on subdivision and ready-built housing to recover the number of houses sold.
In the renovation business, we aim to achieve a CAGR of around 4% by strengthening sales to home owners as well as external sales to nine high customers. In other businesses, we will aim for significant growth, mainly in the frontier domains, namely real estate and town and community development, to achieve an increase of JPY 42.6 billion to JPY 580 billion in total. On the right side, for operating profit, we are aiming for an overall increase of JPY 7.2 billion to JPY 40 billion. In the housing business, we expect an increase in fixed costs due to capital investments in automation, et cetera, and improvement of employee compensation and other items, as well as the impact of component cost, mainly for housing equipment.
However, we plan an increase of JPY 2.7 billion in operating profit by increasing the number of subdivision and ready-built houses sold by 300 units, and through the full effect of price revisions and an improvement in gross profit through cost reduction and other measures. In the renovation business, although fixed costs are expected to increase due to measures to strengthen the organization, we expect an increase of JPY 1.9 billion due to higher sales. As for other businesses, we will strive to realize high growth, mainly on the frontier domains such as real estate and town and community development. Next, on page 29 are initiatives by business. First, for housing, we will focus on expanding sales of subdivision and ready-built housing and raising product competitiveness to increase the number of houses sold.
In addition, considering the market slump that began last fiscal year, we will promote optimization of business and production systems with a long-term perspective in anticipation of accelerated pace of market maturity to improve profitability. With respect to the measures in the table at the bottom, we will further strengthen the three growth strategies of products, land, and customer attraction that we have been pursuing in the previous medium-term plan. In particular, the land strategy is positioned as the most important measure to achieve the plan for number of houses sold and high factory utilization. We will focus on strengthening procurement and communicating the added values we offer. To improve profitability, we will focus on strengthening purchasing and pricing policies and responding flexibly as we learned from the previous medium-term plan.
In addition, we will promote integration among development, production, construction, and other technical divisions to curb external costs and increase added value. Moreover, as we have already done, we will shift personnel from the indirect divisions of new housing to the direct divisions in the frontier domains to reduce fixed costs of housing and increase marginal profit of other businesses. We will also work to strengthen our business foundation to achieve sustainable growth. Next on page 30 are measures for the renovation and other businesses. We will aggressively invest managerial resources in frontier domains and promote fusion among businesses and with external parties to expand the scope of our business. First, in the renovation business, we will seek to strengthen our branding for non-home owners, increase geographical coverage from Tokyo to other metropolitan areas. Last month, we announced a capital and business alliance with Renovell, a condominium renovation company.
This alliance will help revitalize not only the external sales renovation business, but also the purchase and resale of real estate. In the real estate business, we will first focus on increasing the number of rental units under management, which will serve as the foundation for overall business growth. We will strengthen relationships with customers and expand their frontier domain through purchase and resale and housing complex renovation businesses. From the new midterm management plan, we will focus on the asset utilization business. We will also focus on generating rental income from properties we own and create profits through gain on sales of property that was sourced at an appropriate timing. We will also seek to generate synergies between the renovation and town and community development businesses.
Regarding the town and community development business, we have already completed the sourcing of properties scheduled for sales until fiscal 25. We will focus on appropriate project progress management as well as on the expansion of our organizational structure and preparation for the next medium term to further expand our business. Page 31 is the last page of the Housing Company showing our business performance. As mentioned earlier, we expect to continue to face a difficult business environment, especially in new housing, we will deepen our efforts in core domains and boost profits by leaping forward in and exploring frontier domains so that we can aim to return to pre-COVID levels. We have positioned these three years as the growth stage toward our long-term vision for 2030.
We will aim to develop into a comprehensive housing construction and real estate business centering on production technology, which is our distinctive strength. That concludes my explanation of the Housing Company. Thank you very much.
I am Yoshiyuki Hirai, Divisional Company President of the UIEP Urban Infrastructure and Environmental Products Company. I will go straight into the presentation. First, on page 33 is a summary of the previous midterm plan. The top left shows the analysis of operating profit. Unfortunately, we fell short of our operating profit target of JPY 20 billion, achieving JPY 17.1 billion. Sales volume and product mix was significantly affected by COVID-19. In Japan, construction plans for office buildings, hotels, and hospitals were postponed. Demand for renovations fell sharply. Construction work had been delayed significantly due to construction site labor shortages due to the spread of COVID.
As shown in the graph on the left, under priority indicators at the bottom left, prioritized product sales also ended far short of target. For overseas sales, which is on the right side of this section, there were delays in construction due to lockdowns and sluggishness in the aviation and railroad industries. However, the plan was achieved due to an increase in sales to semiconductor factories and the weak yen. Returning to the analysis of operating profit, raw materials and cost reduction, et cetera, were significantly negative due to the sharp rise in raw material and fuel prices. However, we were able to secure spreads by improving the selling price flexibly. In addition, as described in the priority implementation measures in the top right, because of structural reforms and productivity gains, fixed costs improved significantly, and we were able to achieve record high profits.
The results and challenges are also shown here. I will skip this part as it will be a repetition of what I have just said. Next, on page 34 are the targets of the new medium-term management plan. In fiscal 2025, the final year of the plan, we are targeting net sales of JPY 261 billion, up JPY 26.7 billion from fiscal 2022, the year after the reorganization of the portfolio, and operating profit of JPY 25 billion, up by JPY 3.8 billion. The key to achieving the plan is to increase sales volume and product mix by expanding sales of prioritized products and increasing overseas sales, as well as securing spreads by maintaining selling prices.
Fixed costs are expected to increase by JPY 7.6 billion due to an increase in labor costs resulting from higher wages, R&D, and strengthening of overseas marketing activities, et cetera. We will engage in efforts to expedite the impact from productivity transformation activities and will secure profits by thoroughly managing and reducing costs if demand is weak. Next, on page 35, I will explain the three strategic fields. In line with the portfolio reorganization implemented in October last year, we have also revised the three strategic fields. In the pipe systems field on the left, we are targeting net sales of JPY 131.6 billion in fiscal 2025. We will strive to expand sales of new products for construction and piping materials for plants and aim to increase sales of CPVC compounds by expanding the number of new customers.
In the core businesses, we aim to expand in new applications such as in renewable energy. In the building and infrastructure composite materials field in the middle, we aim to achieve sales of JPY 89.1 billion in fiscal 2025. We will aim to create new markets for fire-resistant materials through new products, accelerate the overseas expansion of FFU railway sleepers, and expand sales of prioritized products such as large-sized, high flow rate drainage systems, nursing care, and high-performance bathtubs. In the infrastructure renovation field on the right, we aim to achieve sales of JPY 36.3 billion in fiscal 2025. In the area of pipeline renewal, we will expand the domestic market where we can leverage our unique technologies with new products and develop new overseas customers. In Aqua Systems, we will focus on expanding sales of functional tanks and water treatment systems.
Please turn to page 36. There are four major growth strategies. Regarding prioritized products sales on the top left, we aim to increase sales by JPY 14.2 billion over the next 3 years to JPY 57.5 billion in fiscal 2025. Priority measures to achieve this target will be further sophistication of marketing DX, attracting more people to the Chiba Solution Center, and strengthening proposal capabilities by visualizing impact and upgrade and expand STG contribution data. Overseas sales in the top right are targeted to increase by JPY 11.3 billion to JPY 53 billion over the next 3 years. Priority measures include realizing the effects of growth investments, such as for the capacity expansion of the FFU Europe plant and the Taiwan plant for piping materials.
We will also improve and expand our overseas marketing structure, which we were unable to do in the previous midterm. Specifically, we will carry out marketing activities for prioritized products that have been well-received in Japan. We will also aim to make achievements in M&A. At the bottom left, new products are defined as products that have been in the market up to five years after their launch. We aim to achieve sales of JPY 27.9 billion in fiscal year 2025. We will double the number of products that create new markets. As stated in the priority development measures, we will concentrate development costs and man-hours into market creation themes. We will also strengthen our efforts in themes related to resource recycling. Finally, the bottom right shows synergies to be created through portfolio reorganization.
The chart shows some examples, but in the second half of last year, a task force completed the selection of themes that are expected to generate large synergies, and we have already started working on each theme. Lastly, on page 37, I would like to show you our business performance trends and the targets of the new medium-term management plan. Since 2015, we have been promoting structural reforms and shifting to high value-added products, achieving greater operating profit margins. Post-portfolio reorganization in fiscal 2022, we achieved an operating profit margin of 9% and ROIC of 10%. In the new midterm plan, we aim to achieve profit growth through sales increase and further improvement of profitability, focusing mainly on prioritized products and overseas markets.
As management KPIs, in fiscal 2025, we aim to achieve net sales of JPY 261 billion, an operating profit of JPY 25 billion, an operating profit margin of 9.6%, and ROIC of 10.6%. This concludes my explanation. Thank you for your attention.
I am Futoshi Kamiwaki, Head of the Business Strategy Department. I'd like to share the medium-term management plan for the medical business. Page 39 is a summary of the previous medium-term management plan. The previous medium-term management plan was affected by the decline in demand for diagnostics due to COVID-19. As demand recovered in fiscal 2022 and the overseas diagnostics business grew, both sales and profits achieved the midterm plan. In the domestic diagnostics business, sales of COVID-19 diagnostics kits increased, contributing to performance.
We were not able to make up for the delay in sales expansion from new products and new Blood Coagulation devices, and we fell slightly short of our midterm sales target. On the other hand, in the overseas diagnostics business, there was a delay in FDA approval in the U.S. Due to demand expansion for diagnostics in Europe and the U.S., as well as the sales increase of Blood Coagulation equipment and reagents, we were able to broadly achieve our midterm sales target. In the pharmaceutical sciences business, new pharmaceutical ingredients contributed to sales. Excluding the impact of the transfer of Xenotech shares, we were able to achieve the midterm sales target. Page 40 shows the analysis of operating profit under the midterm plan. We will focus on expanding the scope of diagnostics and sales of new products to accelerate growth, particularly in the overseas diagnostics business.
In 2025, we aim to achieve net sales of over JPY 100 billion for the first time in the medical business and to continue to achieve record high profits while continuing to strengthen research and development. Page 41 shows strategies by business in the new midterm plan. First is our mainstay diagnostics business. In the domestic diagnostics business, we plan to increase sales by expanding sales of blood coagulation testing equipment and entering the high sensitivity immunology field through external fusion and expanding alliances. In the overseas diagnostics business, we plan to enter the OTC market in the U.S. and develop the gene testing field where the market is growing. In China, we will continue to focus on expanding sales of blood coagulation reagents, which will drive the growth of the overall medical business.
In the pharmaceutical sciences business, we will acquire new projects by strengthening our development function in the pharmaceutical business. We will also aim to expand the CDMO business through operations at a U.K. GMP facility and strengthen preparations for further growth toward our long-term vision. In new product sales, we aim to acquire new platforms and technologies and develop and launch new products steadily. Turning to page 42, the new midterm plan clearly positions the medical business as a growth driver business, and we will aggressively invest in and strengthen developments. In 2025, we aim to achieve JPY 112.5 billion in net sales and JPY 18 billion in operating profit and accelerate growth. Finally, on page 43 is the long-term vision for the Life Science domain.
This diagram shows the 2030 long-term vision of the Life Science domain, which is the evolved version of the medical business. The pillars of the Life Science domain are diagnostics and pharmaceutical sciences. In diagnostics, we aim to further expand the domain by leveraging the strengths of the existing businesses. We are expecting growth, especially in overseas markets. In pharmaceutical sciences, we will quickly develop the foundation of the CDMO business for pharmaceutical ingredients, which is adjacent to our existing business. With this business at the core, we will challenge ourselves to commercialize cell culture solutions which we are working on in R&D and create new businesses such as digital health. We will focus capital allocation to this area to grow this pillar even larger. This concludes my explanation. Thank you for your attention.