I would like to introduce today's speakers. Mr. Shoji Miyazaki, President and CEO. Mr. Frederick Reidenbach, Chief Financial Officer. After their presentations, we will have time for questions and answers. Mr. Miyazaki, the floor is yours.
Hello, everyone. I am Miyazaki, President and CEO. Today, Fred Reidenbach, CFO, and I would like to explain the third quarter results and our forecast for the current fiscal year. This is the content of my presentation today. First, I will explain the third quarter financial highlights. In the Q3 year-to-date results, despite the reduced reimbursement for PCR testing for COVID-19 in the last fiscal year, sales revenue landed at JPY 265.1 billion due to the favorable impact of foreign exchange rates. The revenue increased to 5.0% year-over-year.
Operating income was JPY 21.4 billion, down 10.9% year-over-year, and adjusted EBITDA was JPY 49.3 billion, down 12.8% year-over-year. This was due to the impact of the reduced reimbursement as well as the impact of inflation in raw materials and logistics costs. As for the full year forecast, the recent appreciation of the Yen is expected to have a downward impact on both revenue and profit. At this point, we have decided to maintain the previous forecast for the exchange rate assumption. We maintain our previous forecast for revenue at JPY 358.3 billion, OP at JPY 33.6 billion, and adjusted EBITDA at JPY 69.3 billion.
On the other hand, the forecast for items below profit before tax has been revised downward considering the results through the Q3. The annual dividend forecast remains unchanged at JPY 72 per share. Our CFO will explain the details of the figures later. I'll explain the progress of the turnaround. Since the reduction of headquarters expenses has been completed with the report on the Q2 results, I will explain only about the pathology business this time. In the pathology business, Epredia continued to increase sales in the third quarter year-over-year, and December sales was the highest recorded in the single month since the acquisition in real terms. Year to date revenue increased to 25% year-over-year due to, in part to the favorable impact of FX.
Although the favorable FX effect was significant, there was also growth in digital pathology with a 50% increase in revenue year-over-year and the price revisions also contributed to the substantial growth. Regarding actions to improve profitability, while progress has been made in visualizing and streamlining operations, cost increases due to the inflation, particularly for oil-derived products, have been significant. Despite continued tight control of transportation costs, supply chain cost issues remained, limiting progress in improving profit margins. With respect to the fourth quarter outlook, the effect of price revisions with major customers is expected to be positive and sales are projected to increase year-on-year. We recognize that as a risk, the possibility of stronger headwinds from China's policy preference for domestic products.
As for EBITDA, we plan to further improve operations, but there is a downside risk in profit margin due to the impact of inflation on packaging materials, oil-derived products and others. As for impairment risk, there is no sign of impairment as of the end of Q3. In the impairment testing for the full year, whose process has already started, the risk of an increase in the weighted average cost or WAC is assumed due to the impact of rising interest rates. We will continue to carefully assess the risk. I will explain the progress of initiatives for achieving the Midterm Management Plan, three each in foundation areas and growth areas. In the foundation areas on the left. In the Healthcare Solutions domain, LSI Medience concluded an industry academia collaboration business agreement with Fujita Health University in the clinical testing business to enhance regional medical collaboration.
By forming a strategic partnership in the clinical testing fields, we will work together to solve further future-oriented issues regarding the changes required to the operation of clinical laboratories at medical institutions. Medicom started providing software for electronic prescriptions nationwide. It is targeted at medical institutions and dispensing pharmacies, and was developed in response to the start of electronic prescription operations promoted by MHLW on January 26th. In the Diagnostics & Life Sciences, Biomedical launched a non-CFC -85 degrees ultra-low temperature freezer with approximately 30% lower power consumption compared to the current model. The VIP ECO SMART series with enhanced usability and security has achieved the industry's number one energy-saving performance in the ULT freezer field of the ENERGY STAR program. Next, I will also explain the progress of the three growth areas on the right side.
First, in the Diabetes Management, together with Senseonics, we have partnered with Nurse Practitioner Group, NPG, in the U.S. NPG will insert the Eversense E3, a 180-day wearable CGM system, so that it can be inserted in the nearby clinics or at home. In addition, it'll promote the product by making it available to patients who are seeing an HCP who do not perform the procedure. In the Medicom business, in the Healthcare Solutions domain, we are expanding our cloud-linked solutions. As the second item with API connection following the reception management application, the cashless payment terminal of SB C&S, a SoftBank Group company, and Medicom's electronic medical record system have been linked with an API connection. This will encourage the spread of cashless payment in the medical industry, where the adoption rate is low.
Epredia has joined the Innovation Accelerator, a program launched in the U.S. To provide the research space and the support to companies with regenerative medicine technologies. We will assist the researchers with solutions featuring slide image processing and AI technology. Thus, we will continue to promote growth measures to achieve our midterm management plan. That's all I have to say. Thank you very much. I will hand over the microphone to Fred.
Thank you, Miyazaki-san. In the next few slides, like I've done in the prior quarters, I will cover three key topics. First, I will review the key drivers of the performance with an emphasis on the year-to-date results. I will walk you through how these results are affected by COVID-19 and other one-time expenses. I'll provide an update on the balance sheet before I finally review our forecast for this fiscal year. If you could turn on to slide nine. On slide nine, we have included on the left side our year-to-date results and on the right side, our results for the third quarter. Both are compared to the same period of the prior year. Up until the end of Q3, our revenue was JPY 265.1 billion.
That is an increase of 5% compared to the JPY 252.4 billion reported in the same period of the prior year. The average exchange rates for the first three quarters was JPY 141 to the Euro and JPY 136 to the Dollar. This is up from JPY 131 to the Euro and JPY 111 to the Dollars in the same period of the prior year. The weakening of the Yen resulted in a favorable foreign exchange revenue impact of JPY 18.7 billion. This benefit was partially offset by a net revenue decrease of JPY 9.4 billion due to COVID-19. Our operating profit decreased 10.9% to JPY 21.4 billion. Like on the revenue side, these results benefited from favorable impacts from exchange rates.
The FX benefit was offset by three items. Higher logistics costs and raw material prices, which we are continuing to see in most of our businesses. A reduction in reimbursement rates for PCR tests in Japan. Finally, the impact of various lockdowns in China related to COVID. Our year-to-date Q3 profit before tax and our profit attributable to owners of the parent were JPY 7.4 billion and JPY 3.4 billion respectively. These figures are down 70.2% and 81.6% versus the prior year. The main factors driving the drop in profit before tax, besides the decrease in operating profit discussed above, are there was a JPY 7.6 billion swing in the fair market valuation of our investment in Senseonics.
You will see on slide 24 in the appendix that we reported a loss of JPY 6.5 billion until the end of Q3 of this year. This was versus a gain of JPY 1.1 billion reported in the same period of the prior year. Additionally, interest expense rose to JPY 4.8 billion. This is up versus the JPY 1.9 billion reported in the prior year. Lastly, in the prior year, we booked a gain of JPY 2 billion on the sale of an investment. First, this year, we are booking hedging costs for Russian rubles of JPY 1.2 billion and an FX loss on the intercompany loan of about JPY 700 million. On the business side, our year-to-date EBITDA decreased by 7.1% year-on-year to JPY 44.1 billion.
Our cash base net net income decreased by 36.7% to JPY 15.7 billion. After adding back one-time charges, our year-to-date adjusted EBITDA decreased by 12.8% or JPY 7.3 billion to JPY 49.3 billion. For the quarter, despite a strong prior year comp due to COVID-19, you can see on the right side that we reported strong results. Revenue was up 9.5% year-over-year to JPY 94.5 billion, and operating profit was up 3.5% to JPY 10.9 billion. Despite the top line strength, profit before tax came in at JPY 4 billion, 15.5% lower than last year. Profit attributable to owners of the parent company was JPY 2.2 billion, down 37.3% from last year.
Our cash-based results for the quarter was a gain of JPY 7.3 billion, 17.5% lower than last year. On the business side, EBITDA increased by 7%, 0.7% year on year to JPY 18.4 billion. Our adjusted EBITDA did decrease by about 50 basis points to JPY 19.6 billion. I will explain in more detail our quarterly and year-to-date business results by segment in more detail on the following slide. First, let's look at the quarterly trend of our revenue and adjusted EBITDA. As explained in the previous quarter, Q1 tends to be our slowest quarter as budget spend by our customers in Japan tends to be low after March fiscal year ends. Budget spend outside Japan tends to be not as strong in the first half of the calendar year.
Spend in Japan tends to accelerate in our fiscal Q3, with the largest portion coming in our fiscal Q4 as corporations in Japan seek to use their budgets before the end of Japan's fiscal year-end in March. American and European customers tend to accelerate from July, with the largest volume coming in the October to December period. This trend in Q3 from our global customers coupled with positive FX tailwinds resulted in revenue and adjusted EBITDA rising in Q3 by 6.1% and 13.2% respectively when compared to Q2. The minor drop in Q3's adjusted EBITDA versus prior year is due to decreases in our COVID business.
While we did continue to see positive COVID-19 impacts in Q3 of this year, you can see on slide 17 that the year-to-date results were not as strong as what was reported in the same period of the prior year. The drop in this business, coupled with lower margins on the business this year versus last year, contributed to lower adjusted EBITDA by about JPY 7.8 billion, with the reduction in margin principally due to PCR testing rate decreases. If you could turn to slide 11. Slide 11 shows our accumulated Q3 revenue performance of the five business units within our three segments. I will go over the details of each segments in the coming slides, but at a summary level.
Our Diabetes Management segment, which makes up 32% of the total group revenue, increased 1.8% year-over-year to JPY 83.4 billion. Our blood glucose monitoring for our BGM business unit within this segment benefited from positive FX impacts. These were not able to offset the continued sales decline in the United States due to the termination of the sales partnership agreement we have been reporting on in the last several quarters. Our CGM business unit within the segment reported results greater than last year as growth in the U.S. continued to develop nicely with the rollout of the implantable 180-day product. Lastly, our IVD business unit within this segment also contributed to strength of the top line with the expansion in sales of our injector lineup.
The Healthcare Solutions segment, which makes up 37% of the total group revenue, decreased 0.5% year-on-year to JPY 99.2 billion from JPY 99.6 billion. Within this segment, LSI Medience's revenue decreased 3.5% to JPY 72.2 billion. This drop was due to reductions in our PCR reimbursement unit price due to reimbursements, due to revisions in reimbursement rates which took place in April and again in July, and a decrease of global COVID-related IVD sales. Despite the JPY 4.5 billion drop in PCR-related revenue, which we will cover on slide 17, underlying growth was up 4% due to a rebound in our clinical testing and drug development businesses.
Medicom's revenue increased 8.7% year-on-year to JPY 27 billion due to positive impacts from the rollout of the online eligibility verification system promoted by the Japanese government. This strength, coupled with continued strong sales of systems supporting major pharmacy chains, these increases were able to offset the loss of JPY 1.4 billion of COVID-19 sales recorded in Q4 of the prior year. Lastly, the Diagnostics & Life Sciences segment, which makes up 30% of the total group revenue, increased 17.6% year-on-year to JPY 80.4 billion, up from JPY 68.4 billion reported last year. Within this segment, Epredia reported revenue of JPY 36.5 billion, up 25% year-on-year. Positive foreign exchange and M&A impacts helped to increase its revenue.
Lastly, the delivery of ULTs to meet COVID special demand, positive foreign exchange impacts, and the acquisition of new projects supporting our customers in the establishment and rollout of their life science research facilities, a business which was stagnant for the better part of last year, due to the impacts of COVID-19, helped our Biomedical business unit to increase revenue by 12.1% year-over-year to JPY 43.9 billion. From slide 12, I will explain the breakdown of revenue and adjusted EBITDA by business segment through the end of Q3. First, Diabetes Management's year-to-date revenue increased 1.8% year-over-year, but a change in channel mix in BGM and investments made in sales and marketing and CGM, principally in the United States, resulted in the segment's adjusted EBITDA dropping by 11.3%.
The segment's overall revenue of JPY 83.7 billion benefited from positive FX impacts of JPY 8.3 billion. After adjusting for these, the segment reported a core gross decline of 8.3%. On the BGM side, the decline of sales continued to be due to the termination of the sales partnership agreement in the United States, which we have been reporting on the last couple of quarters. On the CGM side, we reported an increase in sales of the 180-day implantable CGM product in the United States. Lastly, sales in our IVD business unit's new automatic injector line continued to exceed our plans. The segment's adjusted EBITDA margin increased slightly to 33.3%, its adjusted EBITDA did decline to JPY 27.8 billion compared to the same period in the prior year.
This decline was due to planned investments to reinforce the sales force of CGM product in the United States, plus a change in the BGM sensor channel mix from developed to developing markets. On slide 13, our Healthcare Solutions segment's year-to-date revenue, you can see decreased slightly by 50 basis points. Its adjusted EBITDA decreased 15.5% when compared to prior year. Within the segment, our LSIM business unit saw an increase in regular clinical testing and an increase in clinical trials and drug analysis. However, these positives were offset by the negative impact of the two reimbursement cuts I previously noted. Our Medicom business unit's revenue in Q3 continued to benefit from the Japanese government's increased pressure on the industry to complete the rollout of the online eligibility verification system by the end of March 2023.
The business unit also continued to report increases in software sales for receipt computers and dispensing systems from large pharmacy chains. The 15.5% drop in the segment's adjusted EBITDA from JPY 20.6 billion to JPY 17.4 billion caused its EBITDA margin to drop from 20.7% to 17.6%. This drop was mostly due to two cuts in the PCR reimbursement price, but a minor portion does relate to the growth in Medicom's online eligibility verification system revenue, as this business comes at lower margins, given that we outsource the installation. Turn to slide 14. Our Diagnostics & Life Sciences segment's year-to-date revenue increased 17.6% year-on-year, but due to higher costs, its adjusted EBITDA dropped by 0.8%.
At the end of Q3, both our Epredia and Biomedical business units worked through rising logistics costs and supply chain issues, mostly related to lockdowns in China. However, these headwinds were offset by positive foreign exchange tailwinds, as a substantial portion of both business unit sales are denominated in either U.S. Dollars or Euro. The segment's reported revenue of JPY 80.4 billion included a positive FX benefit of JPY 9.9 billion. Excluding this benefit, the segment's revenue came in at JPY 70.5 billion, an increase of 3.1% against the very strong prior year comp, as results were strong in both business units within the segment.
Our Epredia business unit saw positive impact from M&A, and our Biomedical business unit, although experiencing lower special demand for ULTs compared to what we saw last year, continued to see increases in demand for products unrelated to COVID from their life science research center clients. Both business units were affected, though, by higher direct raw material costs, indirect expenses, and logistics costs. These, coupled with the various lockdowns in China and lower COVID demand for higher-margin ULT freezers as compared to the prior year, drove down the segment's adjusted EBITDA margin to 15.1% and its adjusted EBITDA to JPY 10.8 billion. Turn now to slide 15. On slide 15, we have provided bridge charts to explain the change in our year-to-date underlying revenue and adjusted EBITDA versus prior year. On the top side, on our underlying revenue, exceeding.
I'm sorry, excluding a net COVID headwind of JPY 9.4 billion and a positive foreign exchange impact of JPY 18.7 billion, our underlying revenue grew 1.5%. This was driven by underlying growth in our Healthcare Solutions and Diagnostics & Life Sciences segments, offset by weakness in the Diabetes Management segment, which shrank JPY 6.8 billion in the period due to the reasons I explained earlier. Our underlying adjusted EBITDA, excluding a net negative COVID impact of JPY 7.8 billion and a positive FX impact of JPY 2.8 billion, declined by 5.1%. The negative result was mostly due to rising material costs and the planned investments made in CGM to bolster our sales capability. Turn now to slide 16. Slide 16 shows the accumulated revenue breakdown by region.
The group achieved, again, JPY 265.1 billion in revenue, a 5% increase from prior year. Positive foreign exchange tailwinds did help all areas outside Japan to show growth year-on-year. Japan, which constitutes the largest portion of the group's revenue at 42%, came in at JPY 110.1 billion, in line with the prior year. Growth in Medicom's revenue due to the accelerated rollout of the online eligibility verification system and a rebound in LSIM's core clinical business was offset by the reductions in the PCR test revenue in LSI Medience business unit. The Euro region, which makes up 26% of the group's revenue, reported revenue of JPY 68.7 billion, an increase of 8.1% year-on-year.
Strength in Diabetes Management from market share gains in mature markets and sales growth in emerging markets, and strength in our Epredia business unit due to growth in instrument sales and M&A, was able to offset decreased sales in our Biomedical business unit due to a high prior year COVID comp. The North America region, which makes up 21% of the group's revenue, reported revenue of JPY 56.6 billion, up 9.8% year-on-year. Sales growth in the Biomedical business unit from our Life Science Research Center customers for non-COVID related products, and a year-on-year increase in sales of consumables and digital pathology products in our Epredia business unit were able to cover the negative impact on sales related to the termination of the Diabetes Management segment sales partnership agreement in the United States.
Other regions, which include APAC, accounted for 11% of the group's revenue. Sales in this region rose to JPY 29.7 billion, an increase of 9.3% year-over-year. In this region, strength in Diabetes Management in emerging markets was able to offset weakness in China in the Epredia and Biomedical business units due to the various COVID-19 lockdowns. Page 17, I'm sorry, slide 17, provides an update on the estimated impact COVID-19 has had on our year-to-date results relative to prior year, as well as an updated forecast for this fiscal year. Up until the end of Q3, a net sales tailwind of about JPY 6.9 billion generated adjusted EBIT of approximately JPY 2.7 billion.
This compares to a net sales and adjusted EBITDA tailwind of JPY 16.3 billion and JPY 10.5 billion, respectively, for the same period last year. The positive tailwind of JPY 13.4 billion seen up until the end of Q3 continues to be due to PCR testing in the LSI Medience business unit and ULT sales into our Biomedical business unit. The headwind of JPY 6.5 billion was due to continued weakness in esoteric testing in LSIM and the loss of sales in Epredia due to the lockdown of its China factory in Q1. For the full year, we now expect a net sales tailwind of JPY 6.7 billion. This is down slightly from the JPY 8.5 billion forecasted in November.
The impact on adjusted EBITDA for the full year is now expected to be JPY 2.4 billion. This is a significant decrease from the JPY 14.8 billion reported in the previous fiscal year and a decrease from the JPY 3.7 billion expected in November. The decrease in the revised forecast is mostly due to the negative impact increasing on LSI Medience's esoteric testing. Slide 18 provides a reconciliation between operating profit to adjusted EBITDA and a conversion of IFRS reported profit attributable to the owners of the parent to a cash basis. On the top half of the slide, you can see that the only material items between operating profit and EBITDA is depreciation, which decreased year-over-year due to capitalized intangible assets in our Diabetes Management segment, which became fully amortized.
Between EBITDA and adjusted EBITDA, there are several items I would like to point out, all of which we have been reporting on in prior quarters. First, we had structural reform expenses of JPY 3.7 billion, JPY 2.5 billion of which was incurred in the headquarters. These relate to the early retirement support programs offered in Japan and the downsizing of our U.S. headquarters. In Q3, we recognized about an additional JPY 660 million in this category. The one-time special compensation of JPY 1.3 billion includes a portion of the retirement allowance paid to our former CEO in Q1. In Q3, we recognized only about an additional JPY 50 million in this category.
As reported in Q1, there was a profit of JPY 1 billion reported in the other line in our Diagnostics & Life Sciences segment related to the final termination of our transitional services agreement from our acquisition of the Epredia business unit. In Q3, we recognized about an additional JPY 380 million in this category. On the bottom of the slide, we have disclosed the profit attributable to owners of the parent company on a cash basis. Adjustments from the IFRS presentation include three sizable items. First, amortization expense of M&A-related intangible fixed assets. The approximately JPY 884 million increase versus prior year is due to the change in FX rates this year versus prior year as a substantial portion of these assets are denominated in either U.S. Dollars or Euro.
Secondly, there was a JPY 6.5 million mark-to-market on our Senseonics note. This is explained in more detail on slide 24. Finally, the related income tax on these adjustments. Up until the end of Q3, our cash base profit came in at approximately JPY 15.7 billion. Moving on to the balance sheet. Overall, there were no material changes in our consolidated balance sheets as at December 31 versus March 31. On the asset side, other than a JPY 35.9 billion decrease in cash to JPY 59.4 billion, there was no other material changes in our total current or non-current assets.
The decrease in cash was mostly due to loan repayments of JPY 19.5 billion, the payment of our year-end and interim dividend of JPY 8.9 billion, and an increase in working capital of JPY 11.5 billion that is mainly driven by increases in inventory of JPY 8 billion, which are being used to manage global supply chain challenges. A bridge explaining the change in more detail is provided on slide 26 in the appendix. The JPY 8.2 billion increase in goodwill is mostly due to FX. Lastly, the tangible and intangible fixed assets remain flat over the period, as increases in their value due to FX were offset by amortization and depreciation reported in the cash flow bridge on slide 26.
Like on the asset side of the balance sheet, there were next to no changes in our total current or non-current liabilities other than the drop seen in total loan payables. The current and long-term portions of loans payables decreased by JPY 11.7 billion, from JPY 307.9 billion to JPY 296.3 billion. The decreases was due to repayments of JPY 19.5 billion, offset by an increase in the carrying value of the loan, mainly due to currency translation. Lastly, the decrease in our trailing twelve months adjusted EBITDA versus prior year, coupled with a larger net loan balance due to FX and decreases in cash, resulted in our net leverage ratio rising from 3.0 x at the end of March to 3.7 x at the end of December.
From here, I'll explain the updated forecast for this fiscal year. Turn to slide 21, please. Given the progression of our results year to date, we have decided to not lower our revenue and operating profit assumption at this time, despite the recent strengthening of the Yen versus the U.S. Dollar, as weakness seen in revenue and operating profit due to the strengthening of the Yen versus the U.S. Dollar is being offset by strength we are seeing in the underlying businesses. We have decided to hold our annual average FX assumptions to our Q2 forecast, which are 139 to the Euro and 138 to the U.S. Dollar. As I noted on slide nine, our year-to-date average FX rates were 141 for the Euro and 136 for the U.S. Dollar.
From sensitivity work that we have performed versus the forecast rates, potential weakness to our revenue and operating profit numbers due to the strengthening of the Yen versus the Dollar is being mostly offset by strength of the Euro versus the Yen, as a larger portion of our non-Yen result is denominated in Euro. I do want to point out that given uncertainties in the FX markets, it is possible that we may slightly miss our revenue and operating profit targets by anywhere between 1%-2%, with the risk to the operating profit slightly more than to revenue. Despite holding the top line in operating profit, we are making adjustments to profit before tax, profit attributable to owners of the parent, and cash-based profits. We are lowering our profit before tax by JPY 6.5 billion to JPY 17.6 billion.
The decrease is due to three items. First, the JPY 3.5 billion fair market valuation loss reported in Q3 on our Senseonics convertible note. A JPY 1 billion increase in interest expense related to further increases in interest rates on our debt. Lastly, we are adjusting for about JPY 2 billion of realized and unrealized FX losses booked in Q3. These are mostly due to hedges taken out to protect our net assets denominated in Rubles in Russia and the revaluation of an unhedged intercompany loan. We are lowering our profit attributable to owners of the parent by about JPY 7 billion, from JPY 16.7 billion-JPY 9.7 billion.
The takedown is due to flow through on the above adjustments of JPY 6.5 billion, net of tax at a 30% rate, or about JPY 4.6 billion, plus a JPY 2.4 billion further adjustment to our tax expense due to continued weakness seen in the U.S. by our Epredia business unit. Lastly, the net of the above results in about a JPY 4.2 billion takedown in our cash-based profits. As Miyazaki-san has just mentioned, despite this takedown, we have decided to keep our full-year dividend forecast at 72 JPY per share. Finally, on slide 22, we have provided a top-level exchange rate sensitivity guide. Like last quarters, we have listed only U.S. Dollar and Euro, since these, with Yen, make up approximately 85% of the group's revenue and 90% of the group's adjusted EBITDA.
I do, though, want to point out that when calculating any estimates, it's important to understand that we report year-to-date results on a yearly average basis, which means that for each 1 JPY movement in the average real rates in Q4, we will only have a 25% flow through due to the fact that we are currently three-fourths of the way through our fiscal year. I will end my presentation here and turn the floor back to Horizon, but I do look forward to answering any questions you may have when we get to the Q&A section of this presentation