Good afternoon. Now allow me to explain the financial results for FY 2020, ended in March 2021. First, revenue in the fourth quarter was JPY 248.5 billion, almost the same year-on-year. Gross profit was almost the same year-on-year. As for SG&A, we made a further effort to reduce it. Operating profit in the fourth quarter was JPY 8.3 billion. Profit attributable to owners of the company was JPY 5.4 billion. I will give you details later, but the businesses that achieved growth in revenue and the profit in Q4 year-on-year were as shown here. IT services, including Workplace Hub, existing healthcare, measuring instruments, performance materials, and IJ components. The numbers in the parentheses show the growth rate. As for the full year basis, revenue was down 13% year-on-year, JPY 863.4 billion.
This had a great impact, but as for HC&A, it was reduced JPY 53.4 billion since the last year, resulting in operating loss of JPY 16.3 billion, and profit attributable to owners of the company was JPY 15.2 billion. In terms of the full year, we had growth both in revenue and profit in the industries, measuring instruments, performance materials, emerging IoT, as well as IT services. Our business technologies and business is still faced with severe COVID-19 plight, but some of the businesses are already showing recovery to the level of pre-COVID-19. This shows quarterly changes. Operating profit became profitable in the second half of the year. The same goes to profit attributable to owners of the company.
As for JPY 8.3 billion of operating profit in the fourth quarter, it's going to be JPY 11.5 billion, if we are to take out the structural reform cost of JPY 3.2 billion we had toward the end of the fiscal year. The bottom left graph shows year-on-year rates of increase or decrease. As shown in here, revenue was almost in the recovery mode in the fourth quarter, year-on-year. Please find the details by region on page 24, and please refer to them later. Gross profit margin hit the bottom in May. Yes, we had a big gap, particularly in office and professional print due to the print volume impact. With this recovery, the gross profit margin improved. With the industry business becoming bigger, the gross profit margin gap was reduced. HC&A has been constrained.
All in all, as shown in the break-even point in the top right, its ratio became 93% in the fourth quarter. As for the free cash flow, it grew from the positive JPY 6.9 billion in the second quarter to JPY 14.9 billion, and further to JPY 35.9 billion in the fourth quarter. Here, I would like to now make a comparison between the actual results vis-à-vis the earnings forecast we made. As you see here, now we had both positive and negative aspects. Positive side. Profit attributable to owners of the company exceeded the target by JPY 2.2 billion. Non-consolidated profit also improved. Earlier, I touched upon free cash flow. It was up JPY 33.7 billion over the forecast. This is mainly driven by operating cash flow. We had initial borrowings of JPY 85 billion, but we paid back as much as JPY 65 billion.
With this done, equity ratio as of March end was up 0.5 points compared with the end of previous fiscal year. In comparison to the end of Q1, when it was quite half, it went up 3.2%. As planned, we will pay period end dividend JPY 15, up JPY 5 from the midterm. We plan to have SG&A under JPY 100 billion in all the quarters. Excluding the FX impact, it went under JPY 100 billion in real terms in the fourth quarter. Industry Business came in as we had expected. Measuring Instruments had a record high for the fourth quarter if we are to exclude the fourth quarter in FY 2017, when we had a special demand for OLED. Performance Materials also had a record high in the fourth quarter on the quarterly basis since we started its disclosure.
You may have a concern, but the company auditor has finished its evaluation of business, including precision medicine business, and told us there is no impairment loss on goodwill to be applied. As for the negative side, in terms of the forecast we made, we were particularly affected in January and February by the lockdown imposed again in Europe and the U.S. As shown here, though we had forecasted a 90% recovery in the non-hardware revenue, but it turned out to be 84% in office and 88% in production printing. This gap had its impact on operating profit. Though I will explain this later, the number of units of the hardware sold recovered in March. This will have a positive impact on the non-hardware business in FY 2021.
Another point about the genetic test being conducted by Ambry. Yes, the number of visits to hospitals in the U.S. in January and February declined. The recovery of a number of tests started in the latter half of March, so its contribution to revenue will take place in FY 2021. As for the structural reform, its plan has been postponed partly due to the negotiation we had with labor unions in Europe. This slide shows those points quantitatively. I will not repeat the positive aspects, but profit attributable to owners of the company was up JPY 2.8 billion. Next line shows free cash flow. Loans were paid back, equity ratio being 45.3% with the rating done in March, and dividend. Industry business operating profit was JPY 15.6 billion. We ended the fourth quarter with those numbers.
The negative points are reflected in this table. Against a loss forecast of JPY 13 billion for the entire company, we generated a gap of JPY 3.3 billion. The reason for this is shown here by segment. Office had a -JPY 2.7 billion. Professional print being -JPY 0.9 billion. Precision Medicine being -JPY 0.9 billion. They are the reason for the gap of JPY 3.3 billion. As I have mentioned this earlier, in Office, non-hardware operating profit was down JPY 3.4 billion. With the print volume impact in professional print, its impact on operating income was JPY 300 million. Here I would like to go through the details of the additional structural reform plan. We forecast this to be JPY 5 billion, it turned out to be JPY 3.2 billion. The gap here is JPY 1.8 billion.
With the partial delay in Europe, which I mentioned earlier, this JPY 1.8 billion since helped us in terms of the cost incurred. Out of this JPY 1.8 billion, JPY 1.5 billion goes to office and production print. The gap of JPY 2.7 billion for office will become JPY 4.2 billion in real terms, of which JPY 3.4 billion is non-hardware. JPY 900 million for professional print will become EUR 1.2 billion in euro terms by adding JPY 300 million, of which printing volume is JPY 300 million and the remaining is hardware. Precision medicine ended JPY 7.6 billion in revenue due to the impact in January and February, as I have mentioned earlier. I will explain this later, the number of samples received for genetic tests recovered dramatically in March. It grew 6% in Q4 against the forecast in terms of the testing of the samples.
Now those numbers are plotted in those graphs. The left graph is office. The blue line is non-hardware. At the end of the third quarter, non-hardware recovered 85% year-on-year. As shown in the dotted line, our original expectation was 90%, but it turned out to be 84%, down 1%. The reason for this is the factors we had in January and February in the U.S. and Europe. In March, it recovered up to 91%. In the meantime, the hardware in gray shows 100% in the fourth quarter. In March, it was actually as high as 120%. Moving on to professional print, non-hardware, it was 88% vis-à-vis the forecast of 90%, but it was 95% in March. As for hardware, it was 112%, and in March, it went up to 140%, showing a high recovery.
The number of genetic testing samples received by Ambry is shown here in the bar graph. Yes, it was rather slow in January and February. March shows a recovery, this recovery is going to have its impact on performance in FY 2021. This graph shows operating cash flow. It shows the changes over the past five years. As shown here, the annual number is JPY 78.1 billion. It is actually the highest in the five-year period, the total for the second half was JPY 68.4 billion. Here, let me look into the industry business. I would go through the quarterly revenues of the core businesses, namely measuring instruments and performance materials. This shows the quarterly revenue for five years. The left measuring the instruments, the latest fourth quarter shows JPY 9.6 billion in revenue.
This is rather comparable to the number back in FY 2017 when we had a special demand for OLED. In the background, we acquired in 2019 EINES Systems for automotive visual inspection measurement, and furthermore, in the fourth quarter, we acquired Specim, giving us new domains such as food and pharmaceuticals. They are now getting into our consolidated results. Performance materials revenues are shown here. Starting from the second quarter in FY 2020, it grew firmly. For the full year, it became JPY 46.8 billion. This business is now backed up by large displays as well as our strong capabilities such as thin films, both small and medium-sized displays, and mobile displays. We are now promoting our new resin film called SANUQI, and its true value is now getting appreciated. These two operations are the core of industrial business, the former segment.
Its operating profit is shown in the line. From the third to the fourth quarter, it surpassed the 20% line. Measuring instruments and performance materials and within our quite popular IJ components, whose number is not yet disclosed, but it has a high profitability, show revenue increases that also improve the profit ratio as a whole. I may be repeating the same point here, but in the measuring instruments, we are currently reducing our dependency on displays while accelerating our efforts in other areas such as recycling, food, remote sensing, and pharmaceuticals. This concludes the section on the summary of FY 2020 results. Now, I would like to move on to our forecast for FY 2021. Revenue is expected to be JPY 940 billion, up 9% year-on-year. Operating profit is JPY 36 billion, and profits attributable to owners of the company is JPY 19 billion. Assumption for Forex is JPY 125 to a euro .
I will go into details in the next slide. I have just touched upon the assumed foreign exchange rate. Revenue increase of 9% is an expectation of recovery from the first half of FY 2020, and we should be able to leverage our business opportunities coming from COVID-19 pandemic. This is behind the 9% increase in revenue. Here, I would like to emphasize that we do believe there is going to be a good chance for us to realize around 3% in gross profit. Recovery of revenue can be expected from the region and product mix improvements, as well as recovery in non-hardware business. Industry more than 20% in gross margin definitely has a higher gross profit. Precision Medicine has 60%+ gross profit ratio. Therefore, if its sales goes up, naturally, its margin will go up.
We're strategically spending advanced investment in SG&A, which makes achieving higher operating profit challenging, but gross profit will enjoy large advantage from Precision Medicine sales. As for our SG&A, we will continue to keep control to maintain quarterly level under JPY 100 billion, and we certainly will take on the challenge of generating operating cash flow of JPY 100 billion a year. As for our full year operating profit of JPY 36 billion, this requires portfolio transformation I shared with you in our IR day last year. It's the four-quadrant capital policy, one, about changing the way we run our low profitability business, even if it means finding alternative best owner to run the business. The other one is about our strategic new business. I did mention more about the portfolio transformation in our IR day, like financing the scheme flexibly, looking at all possibilities.
We don't want to postpone starting the task. It will be done within the two-year midterm plan during years 2021 and 2022, and as soon as possible. That's where the portfolio transformation JPY 4 billion comes from impacting operating profit. It is a one-off expense, and we do feel it is important to factor in all these elements in deriving the JPY 36 billion. What are the risk factors then? First, the upside. We certainly can talk about FX because our currency assumption is JPY 125. We will make currency reservations, but more than that, we believe the upside will come from early recovery of demands due to more people getting vaccinated, especially because we have higher exposure to the US and European market. On the other hand, the steep recovery of demands will likely cause increase in materials price for an extensive period.
Although we have factored in some impacts of this, it is still a risk factor for us, and it will be a downside risk, especially if the high price stays that way for long. This page shows factors in operating profit increase or decrease from FY 2020. Simply put, particular factors, mainly around our business technologies, will add JPY 17 billion. This includes effect we can enjoy from structural reforms as well as additional expense. Naturally, global subsidies will go down. In net, it's JPY 17 billion. There's the JPY 32 billion contribution from increase or decrease of business technologies plus Digital Workplace professional print businesses. All that in total tells you that business technologies added JPY 49.1 billion more to our operating profit, as you can see below.
Healthcare adds another 5.4, Industry 7.4, but Corporate & Others is -9.6, meaning there will be a JPY 9.6 billion increase in expense. Part of this is the one-off JPY 4 billion portfolio transformation expense I mentioned earlier. There's also what we call corporate R&D that will increase, in other words, strategic parts of R&D efforts that we want to keep on investing for our future. That's also something that you can find here. Now this slide shows how revenue and operating profit changes by segment. I will be elaborating more on this in the following slides. For example, you can see what the first, for example, Digital Workplace with Office at its core, is expecting in terms of sales growth in 2021. During FY 2020, we focused on non-hardware offerings, and this year we are going to aim to achieve 84% of FY 2019.
In other words, we want to be a bit cautious for FY 2021, that's why the previous Q4 actuals of 84% vis-à-vis FY 2019 is going to be the baseline assumption throughout the entire FY 2021. What about sales growth? Here on this slide, we write about Digital Workplace with JPY 20 billion increased profit for more business, aside from JPY 15 billion increase from particular factors. For example, we expect to acquire large-scale projects with our full lineup of new products. We also mention about One Rate. It's about applying one unified charging rate regardless of printing volume. One Rate is now being offered and increasing more overseas market, this scheme contributes to our gross profit. We also utilize AI to offer optimal proposals. The DW-DX is about our IT service and Workplace Hub.
Switching core software to in-house development to gain gross profit, outsourcing service back-office operations to increase gross profit as well as to enhance flow of IT service profits. As cybersecurity has now become even more a critical theme, we can offer cybersecurity diagnosis combined with Workplace Hub, enabling us to become number one in security for managed IT. We're also working with local governments to offer electronic application and processing as part of our core IT services. This is where we will also intentionally reduce development costs by JPY 4 billion to seek more profit. Professional print, there's JPY 2 billion increased profit by particular factors and another JPY 12 billion coming from business growth. Non-hardware offering, here our Q4 actual was 88% of FY 2019, but we expect there will be some recovery. Our base assumption will be to achieve 90% of FY 2019.
We're gaining competitiveness, expanding combination of high-end product printing IPs at mid and major printing companies, as well as offer high-end functions. That is exactly what we want to do, and our highly differentiating IQ-501 will now become a standard offering, and we will launch a new model for high- and medium-speed label printer, where we are very strong at. We will also continue expanding PP sales in China, which was at its highest in FY 2020. Of course, cost reduction is also important. At the same time, we will also include possible impacts of known risks in the first half, namely semiconductor shortage and materials cost increase. For healthcare business, strengthening our digital business, especially in Asia, will be the key to increase our profit.
In Japan, we will start remote diagnostic services utilizing INFOMITY platform used in over 10,000 medical institutions, expand sales of high value added DR integrated X-ray systems, be proactively engaged in establishing clinical value of Dynamic DR in Japan, U.S., and China. For precision medicine, we are finding steady increase in RNA test Ambry Score offering, enabling us to differentiate ourselves. We are also expecting resumption of clinical trial for Invicro, especially because there wasn't much progress with clinical trials in FY 2020 due to reasons by the patients. We will also deploy CARE Program for able-bodied people in Japan and the U.S. We've also recently announced a couple months ago that we will deploy LATTICE operating on IoT platform. While we execute all these plans and strengthen top-line growth, we will also make sure to implement necessary cost reduction efforts as well.
Next, measuring instruments, w e now have new technology for displays. We will promptly introduce and solidify its performance. We also will work on other non-display applications, for example, auto, food, and pharmaceutical, to add more profit. For materials and components, we will accelerate our current initiative to increase market share within large size TVs, as well as work on small and mid-size thin film technology. I already spoke about inkjet components. Again, we expect 40% sales growth. We've been competitive in regards to durability, enabling us to strengthen POD field. We've also strengthened our MEMS technology, expanding to package and building materials. We also describe here our initiatives for components, as you can see. Another midterm growth driver is imaging IoT solutions, MOBOTIX. We will utilize this in offering managed security solution, expanding sales in East Europe as well as in North America.
We developed FORXAI image analyzing platform using AI, and we will upscale our works here with a partner during FY 2021. Going back to slide 12 a while, earnings forecast for FY 2021, because I want to explain what's changed from what I said in our IR day back in November. I know that I said that the management's goal for FY 2021 is to achieve operating profit of JPY 40 billion. By the way, we already have been able to benefit by JPY 4 billion from FX, mainly from Europe. That's already a bonus in achieving JPY 40 billion. However, let me once again iterate that we are being a step more cautious in forecasting printing volume of the business technologies. We also now have to factor in other risks, including semiconductor shortage, and that swipes away most of that JPY 4 billion FX bonus.
In addition, there is the expense associated with portfolio transformation, which we did not allocate any numbers in November. We decided to record expenses this time instead of pushing it aside. If you subtract 4 billion for this part from 40, that then gives you FY 2021 forecast of JPY 36 billion. For our FY 2022 outlook. We don't plan to change our current operating profit target of JPY 55 billion we mentioned in our previous IR day. I will skip details today, let me emphasize that we are all proactively working to ensure our profit growth from FY 2021 so that it will mark foundation for all the initiatives you find here to secure an even further profit growth in FY 2022 as well. That's what I wanted to point out on this slide.
Here's my final slide. Again, we are in the midst of transforming our portfolio. We're working basically on two areas. One, the office demand, where we base ourselves in offering Digital Workplace. We need to make sure that we transform our IT service offering to something unique, not just any ordinary IT service. Second, we need to reduce our overall reliance on Digital Workplace and build a next pillar of our business. That shall complete our entire portfolio transformation. No doubt that this will be completed by the end of FY 2025, but we also need to accelerate the progress during FY 2021 and 2022, including strategic resource and capital reallocation on human resource and R&D spending, as you can find on this page.
On the other hand, we have to be mindful of our operating cash flow and cost structure, cost controlling where required, such as keeping SG&A within JPY 100 billion. Finally, for shareholder return, in light of FY 2020 improvement in cash-generating capacity and heightened probability of profit improvement throughout FY 2022, the annual dividend for FY 2021 will be JPY 30 per share. That is JPY 5 increase from FY 2020. With that, I will conclude my presentation. Thank you