Hello, everyone. This is Shimomura, the President of Sumitomo Heavy Industries. Thank you very much for joining financial summary meeting despite your busy schedule. Today at 3:00 P.M., we announced the financial results of the Q2 FY 2022, and the revision of the forecast for FY 2022 at the Tokyo Stock Exchange. Let me explain the contents in this meeting. This is today's contents. In the H1 of presentation, I'll explain the financial summary for the Q2 FY 2022, and the projections for FY 2022. In the second part, I'll explain topics in the H1 of this year and initiatives to promote sustainability. Prior to the presentation on the financial results, let me explain the change in fiscal year end. Starting from FY 2022, the fiscal year end is changed.
In this year of transition period, the results of nine months are recorded for Sumitomo Heavy Industries and its domestic subsidiaries. 12 months for overseas subsidiaries as before. Included period varies between domestic and overseas, and included period in the Q2 results are shown in the red box part. I'll start with the financial summary for Q2 FY 2022. FY 2021 figures are adjusted for the like-for-like comparison. Orders in the H1 were JPY 705.4 billion. Net sales was JPY 576.6 billion, and operating profit was JPY 26.7 billion. Orders and net sales increased, and operating profit decreased year-on-year. Orders increased due to the solid growth in capital investment and the machinery demand, along with the overall steady economic environment.
Net sales increased due to the impact of yen's depreciation, but the increase was limited due to the production constraints resulting from procurement difficulty and a difference in progress of construction work in Energy & Lifelines segment, among others. Operating profit decreased due to price increase in raw materials and procured products, sales decline in Energy & Lifelines segment, and a decreased project profitability despite the positive impact by depreciation of yen. Profit attributable to owners of parent remains almost same year-on-year at JPY 19 billion, and accordingly, interim dividend for the H1 remains unchanged at JPY 45 per share. Performance by segment. Orders were robust in all segments due to the overall steady development of economic environment.
Net sales increased, but increase was limited due to production constraints resulting from procurement difficulty in the Industrial Machinery and Logistics & Construction segments, and a difference in progress of construction work in the Energy & Lifelines segment, among others. Operating profit decreased due to price increases in raw materials and procured products, sales decline in energy plant, and a decreased profitability in overseas project, despite positive impact by depreciation of yen. Let me explain the details of segment later. Year-on-year comparison of operating profit. Positive factors from the previous years are sales increases in Mechatronics and Industrial Machinery, and foreign exchange impact by depreciation of yen. Whereas the negative factors are increasing SG&A expenses along with sales growth and the impact from price increase of raw materials and procured products. Consolidated balance sheet. Total assets were JPY 1,179.4 billion.
Variance by item is as described. Liabilities and net assets. Due to increased retained earnings and foreign currency translation adjustment due to depreciation of yen, net assets increased and the shareholders' equity ratio went up to 51.2%. Consolidated cash flow statement. Operating cash flow stayed at JPY 24.2 billion due to an increase in working capital. Investing cash flow was negative due to continued investment, and as a result, free cash flow was JPY 2.7 billion. Next, I'll explain projections for FY 2022. We revised the full year 2022 full year forecast based on the H1 results. As for the full year forecast for nine months, orders are JPY 970 billion, net sales are JPY 870 billion, and operating profit is JPY 43 billion.
Compared to the previous forecast, orders increased due to the expected strong demand in capital investment and the machinery demand sustained for this fiscal year. There is no major factor for change in sales from the previous forecast. Operating profit forecast is down due to the increase in raw materials, procured products, and the logistic costs beyond our initial expectation and worsened profitability in overseas project in energy plants, despite the impact of depreciation of yen. Dividend remains unchanged from the initial forecast as JPY 90 for FY 2022, and the dividend payout ratio is 42.4%. Orders, net sales, and operating profit by segment. Compared to the previous forecast, orders in Energy & Lifelines are down due to the shift of contract signing time of large project. In all other segments, orders will increase.
Net sales in hydraulic excavators are down due to the production constraint caused by the procurement difficulty. In all other businesses, sales will increase. Operating profit is down due to the increase in raw materials, procured products, and the logistics cost beyond our initial expectation, and worsened profitability in overseas project in energy plants, despite the impact of depreciation of yen. I explain by segment. Starting with Mechatronics. In the H1 FY 2022, orders and sales increased due to a rise in demand for small to medium-sized gear reducers, precision gears for robots, and motors in Japan, Europe, and the U.S. Operating profit improvement was limited due to an increase in cost for materials and the logistics, despite positive impact by increased sales and depreciation of yen.
For the full year of FY 2022, we assume that the market condition will remain strong, and we have revised upward the previous forecast for orders and sales, but revised downward the operating profit forecast due to higher rise in cost for materials and logistics than our initial expectation, despite the positive factor of depreciation of yen. On the second page of each segment, orders, net sales, and operating profit for six years are shown as reference. In Mechatronics, sales mix by model of gear reducer business is shown. There's no major change in mix from the end of the previous fiscal year. Industrial Machinery. In Plastics Machinery, orders, sales, and operating profit decreased in the H1 FY 2022 due to the slowdown of demand in China and Europe, which had been strong in the recovery from pandemic in the previous year.
FY 2022 full year forecast remains almost unchanged from the previous forecast. Orders and sales increases slightly, but operating profit decreases slightly due to a rise in materials cost and the electricity cost, particularly in Europe. In Others Business, in the H1 FY 2022, sustained strong demand for semiconductor-related products led to increases in orders, sales, and operating profit. In FY 2022 full year, orders are revised upward from the initial forecast with sustained strong demand in semiconductor-related products. Operating profit slightly decreases due to increased order backlog, whose delivery time stretches long into next year and beyond, and limited sales increase are due to procurement difficulty in addition to the rise in material and the logistic costs. In Industrial Machinery, sales mix of plastic processing machinery business by segment and orders and sales of ion implanters business.
When we compare the sales mix of injection molding machines with that of the end of the previous fiscal year, sales in medical care foods, containers, and miscellaneous goods increased slightly. Logistics & Construction. In the first FY 2022, in hydraulic excavators, orders increased despite the demand decrease in China, supported by strong demand in other regions. Net sales decreased due to production constraint, and operating profit deteriorated with sales decrease and the material cost increased despite the impact by depreciation of yen. The full year order forecast for FY 2022 is revised upward due to strong orders in Japan and North America. Sales are revised downward due to production constraints, and operating profit is revised downward due to sales decrease and the material cost increase beyond expectation. In Others Business, orders, sales, and operating profit increased in the H1 FY 2022.
For the full year forecast for FY 2022, all of orders, sales, and operating profit are revised upward from the previous forecast. In Logistics & Construction, in addition to the demand for hydraulic excavators by region and its forecast, information of industrial cranes and mobile cranes are shown. Demand for hydraulic excavators by region in FY 2022 will be almost flat year-on-year, except China. Finally, Energy & Lifelines. Energy plant orders in the H1 FY 2022 increased due to orders received for large-scale project for biomass-fired power generation plants in Japan. Sales decreased due to reduced order backlog in Japan. Operating profit decreased due to sales decrease and a decline in profitability in large project in Europe. In other businesses, orders, sales, and operating profit increased.
For the full year forecast at FY 2022, orders in Energy & Lifelines business are revised downward from the previous forecast due to delay of large contract agreement compared to our forecast. Operating profit is revised downward due to a difference in construction work progress and worsened profitability of overseas project. In Energy & Lifelines, main order received projects are shown. In this year, we received our new order in Japan and Sweden respectively. Following four pages are reference materials. This chart shows consolidated orders, sales, and operating profit. Orders and sales of sub-segments are Plastics Machinery and hydraulic excavators, and sales from semiconductor-related businesses are shown here. Sales in semiconductor-related businesses of this year for nine months will be equivalent to the previous year of 12 months. This slide shows capital investment, depreciation cost, research and development cost, personnel, and foreign exchange sensitivity. Sales by region.
Overseas sales increased year-on-year in all regions except China. Now I explain topics in the H1 FY 2022. First, development condition. This slide shows the development targets shown in the Medium-Term Management Plan 2023. In the Medium-Term Management Plan 2023, we are strongly promoting development in four areas of environment, energy, automation, and digitalization. Today, let me present two initiatives in automation. Our Technology Research Center succeeded in developing a robot capable of traveling over curved steel structure, which had been conventionally difficult. It will reduce physical burden on workers on sites of manufacturing and maintenance of large steel structures, including ships and plant facilities, and we aim to create safer and smarter next-generation manufacturing sites. Second, newly developed product won the award. TUAKA, an actuator for driving robots, won the HERMES Award 2022 at Hannover Messe, held in Germany in May 2022.
Hannover Messe describes this award as an Oscar in the industrial world, and the products and solutions which prominently advanced the technological innovation are subject to the award. We are highly honored to win the award this time. I will introduce two completions of new plants, starting with a new plant for gear reducer. Our new plant was completed in Mexico and launched operation. It aims to expand gear reducer business in the North, Central, and South America through assembly, parts machining, and supply. Second, new plant completion of ion implanter. Sumitomo Heavy Industries Ion Technology, a wholly-owned subsidiary of SHI, manufactures ion implanters used in the semiconductor manufacturing process in Saijo City, Ehime Prefecture. This plant was completed in October 2022 with further automation and labor saving, in addition to the capacity expansion.
With this, we expand the ion implanter business further, which is a core business in our group, semiconductor manufacturing related business. The final topic is the development of a next-generation heavy ion cancer therapy device. SHI and the National Institutes for Quantum Science and Technology successfully developed the world's first multi-ion source that enables more advanced heavy ion cancer therapy. This development enables treatment using multiple ions and can increase the damage inflicted on cancer cells while reducing damage to surrounding normal cells. We are accelerating development, aiming for the treatment launch in 2026. Finally, the progress in promoting sustainability. We started an honest discussion for CO2 reduction at the time of use of products as a basis for CSV. Our initiatives to increase the disclosure of nonfinancial information and offering products and services for social issue solutions are highly appreciated.
SHI is selected as a component of ESG Investment Index, and the Positive Impact Finance contracts were concluded. Future issues are as shown here, and we promote our initiatives further, aiming to strike optimum balance between corporate value and social value. From next page, I'll explain our initiatives in Environment, Social, and Governance. First, response to climate change risks. In line with the Paris Agreement, we worked out a long-term plan and analyzed and evaluated the climate change impact on SHI in two scenarios of 1.5 and 4 degree. SHI is a machinery manufacturer that provides diverse product groups. This time, we focused on Energy & Lifelines and Mechatronics segment with high level of CO2 emission at the time of product use, and with relatively high impacts on business, and evaluated risks and opportunities. Business and response to human rights.
SHI, as a company with global business development, recognizes that a human rights consideration is important in the entire value chain. We set up the Human Rights Risk Project to identify the major human rights risks and to build management structure. We plan to establish the human rights policy at the beginning of the next year. Governance. Based on the results of board of directors' effectiveness assessment, we review especially the composition of the board of directors, accelerate the discussion on business portfolio strategy, and enhance deliberations with an awareness of cost of capital to improve governance further. With this, I conclude my presentation.