Now, without further ado, let me introduce our presenters today. Shoji Miyazaki is our Chief Executive Officer, and Frederick Reidenbach is our Chief Financial Officer. After hearing presentations from these two presenters, we plan to have a question and answer session where we invite your questions. Now I will turn it over to Miyazaki, our CEO.
Hello, everyone. I am Miyazaki. I am President, Representative Director, and CEO. Today, our CFO, Fred Reidenbach, and myself will be sharing our financial results as of the end of the second quarter and our revised forecast for the current fiscal year. We will cover these items today. First, I'd like to share some highlights of our financial results as of the end of the second quarter.
Although our performance for the first half of this fiscal year saw some impact from year-on-year decrease in COVID-related business in comparison to a strong COVID demand we saw last year, but we also saw positive forex . With these factors combined, our sales revenue came in at JPY 170.6 billion, which represents a 2.7% year-on-year increase. Our operating profit came in at JPY 10.5 billion, down 22.2% year-on-year, and our adjusted EBITDA at JPY 29.7 billion, down 19.4% year-on-year. These declines were due to changes in product mix due to the unwinding of large COVID-related orders and inflationary impact we experienced with raw materials and other costs.
As for the full- year forecast, we revised the forex assumption based on the recent weakening of the yen and revising our sales revenue forecast upward by JPY 8.1 billion to JPY 358.3 billion. This reflects assumed continuation of favorable forex impact and elevated demand for ULT freezers and other life science products in the third quarter onward. We're also revising our operating profit upward by JPY 300 million to JPY 33.6 billion and adjusted EBITDA upward by JPY 200 million to JPY 69.3 billion. This reflects the favorable forex impact and possible inflationary risk and other risks associated with our pathology business, which we will discuss later. Our CFO will share further details of these financials later.
Now, I'd like to share some progress we had in our turnaround initiatives, focusing on our pathology business and cost reduction efforts at corporate functions. Our pathology business, Epredia, saw a significant growth in sales of consumables and other products. The sales revenue for the first half of the fiscal year with some favorable forex impact, saw 20.6% year-on-year growth. The business has taken actions to improve its bottom line profit as well. The end customer price revisions started to flow through in the second quarter, and we've seen good progress in supply chain cost improvement efforts as well. As a result, the profit margin of this business is improving compared to the first quarter. Regarding our forecast for the third quarter and beyond, we expect revenue to continue to exceed prior year level.
For EBITDA, we will continue to strictly control our costs and expect to absorb the impact of inflation on material and logistics costs. However, we recognize and factor in the risk of possible delay in passing on the price increases to customers and risk of further cost increases due to inflation and risk that the negative impact of the Shanghai lockdown in the first quarter could not be offset completely. Now, about the reduction of the corporate expenses. As we already announced, we have offered early retirement program in Japan for the employees at corporate functions of the PHC Holdings and PHC Corporation, and a total of 85 employees retired at the end of September 2022. The one-time cost of JPY 1.1 billion to support this program with special retirement benefits and re-employment support have been factored into the revised earnings forecast for this fiscal year.
As for the cost reduction efforts related to the corporate functions in the United States, we have completed a restructuring of our U.S. organization as well.
Next, I would like to explain about the new products and services that will contribute to business growth on a segment-by-segment basis. In diabetes management, the Eversense E3 Continuous Glucose Monitoring System from Senseonics, which can be used continuously for 180 days, has met the safety performance standards set in Europe and obtained the CE marking. In the Japanese hospital market, Soflet, a lancing device jointly developed by Sanwa Kagaku Kenkyusho , was launched. In addition to the excellent usability of one-click system, the Soflet is designed to be environmentally friendly, with a number of parts minimized and the amount of plastic used reduced by approximately 30%. In healthcare solutions, a new SaaS product, DigiCare Analytics, was launched to support the automation of sales data collection and the tabulation at dispensing pharmacies.
By drastically reducing the manual work involved in tallying data, the product helps to improve the quality of dispensing operations by helping to secure more time for face-to-face activities. In addition, various demonstrations are being conducted to strengthen initiatives for telemedicine services. These POCs are using Teladoc Health products and collaborating with other companies to verify the development of two services. The first of which is installation of Teladoc Health in Toyota Auto Body Medical Mover, a medical mass vehicle, with the aim of improving access of medical care in remote areas where the population is aging. The second is a daily vital data measurement and online health consultation program for condominium residents. Demands will be verified through POCs, and the system will be used to build residential healthcare service with a view to future commercialization.
In diagnostics life sciences, two new laser cassette printers, NOVA and VEGA, were launched in the pathology business. These products, developed and manufactured by Fa-Tech, which has already been acquired, have excellent printing performance and contribute to improved operational efficiency in laboratories by facilitating specimen management. We also acquired MICRO-TECH France, a pathology equipment and service company, and Loripath, a consumables company. The acquisition of these two companies, both in France, will further expand our business by strengthening the supply chain sales and service network for reagents and consumables in Europe. We'll also strengthen our collaboration with European university hospitals involved in the treatment and research of cancer and incurable diseases. As explained, we will continue to firmly promote both turnaround and growth measures going forward. We will also present our growth strategy in more detail in our medium-term plan, which will take place next week.
That's all from me. Thank you very much for your kind attention, and I would like to hand over to Fred.
Thank you, Miyazaki-san. In the next few slides, I will cover three key areas. First, I will review the key drivers of our performance with an emphasis on the first half results. Then I will walk you through how these results were affected by COVID-19 and other one-time items before I provide an update on the balance sheet. Finally, I will review our updated forecast for this fiscal year. If you could turn to slide nine. On slide nine, we have included on the left side our first half results and on the right side, our results for the second quarter. Both are compared to the same prior year period. In the first half, as Miyazaki-san pointed out, our revenue was JPY 170.6 billion, an increase of 2.47%.
2.7% compared to the JPY 166.1 billion reported in the same period. The average exchange rates for the first half were about JPY 139 to the euro and JPY 134 to the U.S. dollar. That was up from JPY 131 to the euro and JPY 110 to the dollar in the same period of the prior year. The weakening of the yen resulted in a favorable foreign exchange revenue impact of JPY 11.3 billion. However, this benefit was offset by a net revenue decrease of JPY 8.3 billion due to COVID-19. Our first half operating profits decreased 22.2% to JPY 10.5 billion. As Miyazaki-san mentioned earlier, our results benefited from a favorable impact from exchange rates.
However, the FX benefit was offset by higher logistics costs and raw material prices, which we are seeing in most of our businesses, a decrease in reimbursement rates for PCR tests in Japan, the impact of various lockdowns in China related to COVID, and the increase in headquarters costs noted by Miyazaki-san. Our first half profit before tax and our profit attributable to owners of the parent company were JPY 3.4 billion and JPY 1.2 billion respectively, both down significantly year-on-year. The main factors driving the drop were first an JPY 8.8 billion swing in the fair market valuation of our investment in Senseonics.
You will see on slide 25 in the appendix that we reported a loss of JPY 3.0 billion in the first half of this year versus a gain of JPY 5.8 billion reported in the same period of the prior year. Secondly, on slide 17, you will see that our revenues were lower by about JPY 8.3 billion due to weaker COVID-19 related business this year relative to prior year. This caused about a JPY 6.5 billion drop in profit before tax. The combination of the above offset with lower one-time costs resulted in our first half EBITDA decreasing by 12% year-on-year to JPY 25.6 billion and our cash-based net income decreasing by 47.4% to JPY 8.4 billion.
After adding back the one-time charges, our adjusted EBITDA decreased by 19.4% to JPY 29.7 billion. For the quarter, despite a strong prior year comp due to COVID, you can see on the right side of the slide that we are reporting strong results. I will explain these results by segment in more detail in the following slides. If you move now to slide 10, please. Slide 10 shows 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, and budget spend outside Japan tends to be not as strong in the first half of the calendar year ending June 30th. Spend in Japan tends to accelerate in our fiscal.
Our third fiscal quarter, with the largest portion coming in fiscal, the fourth quarter as corporations seek to use budgets before the end of the fiscal year in March. Whereas American and European customer orders tend to accelerate from July, with the largest volume coming in October to December. This trend from our foreign customers, coupled with positive FX tailwinds, resulted in revenue and adjusted EBITDA rising quarter-on-quarter by 9.3% and 38.9%. The drop in adjusted EBITDA versus prior year is almost all due to decreases in our COVID business. While we did continue to see positive COVID impacts in Q2 of this year, you can see on slide 17 that the year-to-date result was not as strong as what was reported in the same period of prior year.
The drop in this business, coupled with lower margins on the business this year versus last year, contributed to lower year-to-date adjusted EBITDA by about JPY 6.5 billion, with the drop in margin principally due to PCR test reimbursement rate decreases seen in Q1 and Q2. Turn now to slide 11. This slide shows our first half revenue performance of the five business units within our three segments. I will go over the details of each segment in the coming slides, but at a summary level, our Diabetes Management segment, which makes up 32% of the total group revenue, increased 3.1% year-on-year to JPY 55.4 billion. Our BGM business unit within this segment benefited from positive FX impacts, increased sales in emerging markets, market share gains in Europe, and the rollout of our CGM strategy in the U.S.
These results were all in line with our forecast, but they were not able to offset the continued sales decline in the U.S. due to the termination of the sales partnership agreement we have been reporting on for the last several quarters. Our CGM business unit within this segment report results in line with plan, as growth in the United States developed nicely with the rollout of the implantable 180-day product. Lastly, our IVD business unit within this segment contributed with the expansion of sales of our new autoinjector lineup. The Healthcare Solution segment, which makes up 38% of the total group revenue, decreased 3.1% year-on-year to JPY 64.8 billion from JPY 66.9 billion. Within this segment, LSI Medience revenue decreased 4.8% to JPY 48 billion.
This drop was due to a drop in the average PCR reimbursement unit price during the first half due to two price revisions in rates, one which took place in April and the second which took place in July. Despite the JPY 4.5 billion drop in PCR-related revenue, which I will cover on slide seventeen. Underlying growth was up 4.7% due to a rebound in our clinical testing and drug development businesses. Medicom's revenue increased 2.4% year-on-year to JPY 16.8 billion due to the positive impacts from the rollout of the online eligibility check system promoted by the Japanese government, 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 related tailwinds recorded in Q1 of the prior year.
Lastly, the diagnostics and life sciences segment, which makes up 29% of the total group revenue, increased 11.9% year-on-year to JPY 49.3 billion. This is up from JPY 44 billion reported last year. Within the segment, Epredia reported revenue of JPY 23.1 billion. This was up 20.6% year-on-year. Positive foreign exchange impacts coupled with recovery in sales of consumable and glass products in the U.S. and instruments into the EMEA region in Q2 outweighed the negative impacts of the Shanghai factory lockdown, which I reported on in Q1. Lastly, positive foreign exchange impacts coupled with the acquisition of new products.
I'm sorry, new projects supporting our customers in the establishment and expansion of their life science research facilities, a business which was stagnant for the better part of last year due to COVID-19, helped our biomedical business unit to increase revenue by 5.3% year-on-year to JPY 26.2 billion. From slide 12, I will explain a breakdown of revenue and adjusted EBITDA by segment for the first half, beginning with diabetes management on slide 12. Our diabetes management segment's first half revenue increased 3.1% year-on-year, but margin compression in BGM and investments made in sales and marketing in CGM, principally in the United States, resulted in the segment's adjusted EBITDA dropping by 10.7%. The segment's overall revenue of JPY 55.4 billion benefited from positive FX impacts of JPY 5.1 billion.
After adjusting for this benefit, the segment reported a core growth decline of 6.5%. On the BGM side, the business continued to report sales growth in emerging markets and overall market share gains in Europe. However, as I noted on the previous slide, these gains, coupled with the rollout of our cash strategy in the United States, were not able to offset the termination of the sales partnership agreement in the United States. On the CGM side, we reported in line with planned strong 180-day continuous monitoring implantable CGM sales in the United States. Lastly, in our PLCT business unit, we saw increased sales in our new automatic injector line. The segment's adjusted EBITDA margin dropped slightly to 31.5%, causing its adjusted EBITDA to decline to JPY 17.5 billion.
This decline was mostly due to planned investments to reinforce sales of CGM product in the United States, plus a change in the BGM sensor channel mix from developed to developing markets. If you could turn to slide 13. Our healthcare solutions segment's first half revenue decreased 3.1%, and its adjusted EBITDA decreased 22.2% when compared to the same period in prior year. Within the segment, our LSI M business unit saw an increase in COVID-related tests due to the surge in COVID cases in Japan, an increase in regular clinical testing as volumes continue to recover, and an increase in clinical trials and drug analysis. However, these positives were offset by the negative impact of the two PCR test reimbursement price cuts.
Our Medicom business unit's first half revenue benefited from the Japanese government's increased pressure on the industry to complete the rollout of the online qualification confirmation system by the end of March 2023. Plus, the business unit continued to report increases in software sales for receipt computers and dispensing systems for large pharmacy chains. The 22.2% drop in the segment's adjusted EBITDA from JPY 14.3 billion to JPY 11.2 billion caused its EBITDA margin to drop from 21.5% to 17.2%. This drop was mostly due to the two cuts in the PCR reimbursement price, but a minor portion does relate to the growth in revenue from the accelerated rollout of Medicom's online qualification confirmation system, as this business comes at lower margins given that we outsource the installation.
If you turn to slide 14. Our diagnostics and life sciences segment's first half revenue increased 11.9% year-on-year, but due to higher costs, its adjusted EBITDA dropped by 20.8%. During the first half, our Epredia and biomedical business units both 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 USD or euro. The segment's reported revenue of JPY 49.3 billion included an FX benefit of JPY 5.9 billion. Excluding this FX benefit, the segment's revenue came in at JPY 43.4 billion, down only slightly against a very strong prior year comp.
Within the segment, our Epredia business unit saw a strong rebound in demand for consumable and gas products in the United States, plus an increase in sales of instruments into the EMEA region. Our biomedical business unit saw, in addition to continued demand for ULT freezers from customers related to COVID, an increase in sales to life science research centers for products unrelated to COVID. Both business units, again, were affected by higher direct material costs, indirect expenses, and logistics costs. These, coupled with the various lockdowns in China and lower COVID demand for higher margin ULT freezers relative to last year, drove down the segment's adjusted EBITDA margin to 12.9% and its adjusted EBITDA to JPY 6.4 billion. On slide 15, we have provided the bridge charts to explain the change in our first half's underlying revenue and adjusted EBITDA versus prior year.
Our underlying revenue, excluding a net COVID headwind of JPY 8.3 billion and a positive foreign exchange impact of JPY 11.3 billion, grew 1.4%. This was driven by underlying growth in our healthcare solutions and diagnostics and life sciences segments, offset by weakness in our diabetes management segment, which sank JPY 3.8 billion year-on-year due to the reasons I explained on slide 12. Our underlying adjusted EBITDA, excluding a net negative COVID impact of JPY 6.5 billion and a positive FX impact of JPY 1.4 billion, declined by 7.6%. The negative result, though, was due to planned investments made in CGM to bolster our sales capability and an increase in headquarters costs, which as Miyazaki-san already mentioned, we have taken actions to reduce in both the United States and Japan.
Slide 16 shows our first half revenue breakdown by region. Again, as I noted previously, the group achieved JPY 170.6 billion in revenue, a 2.7% increase from last year. Positive foreign exchange tailwinds helped all areas outside Japan to show growth year-on-year in the first half of this year. Japan, which constitutes the largest portion of the group's revenue at 42%, came in at JPY 71.9 billion, down 2.3% versus prior year. Growth in Medicom's revenue due to the accelerated rollout of the online qualification confirmation system and a rebound in LSIM's core clinical business was not enough to offset the drops in the PCR test reimbursement price in our LSIM business unit.
The EU region, which makes up 25% of the group's revenue, reported revenue of JPY 42.4 billion, an increase of 4.8%. Strength in our diabetes management segment from market share gains in mature markets and sales growth in emerging markets, principally in Europe, coupled with strength in our Epredia business unit due to growth in instrument sales, was able to offset increased sales in our biomedical business unit due to the high prior year COVID comp. The North America region, which makes up 22% of the group's revenue, reported revenue of JPY 37.4 billion, up 11.4% year-on-year.
In this region, sales in the biomedical business unit to our life science research center customers for non-COVID related product, coupled with the rebound in sales of consumable and glass products in our Epredia business unit, was 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 18.9 billion. In the region, strength in diabetes management in emerging markets was able to offset weakness in China in the Epredia and biomedical business units due to various COVID lockdowns.
On slide 17, we have provided an update of the estimated impact COVID had on our first year results relative to prior year, as well as an updated forecast for this fiscal year. In the first half of this year, a net sales tailwind of about JPY 3.8 billion generated adjusted EBITDA of approximately JPY 1.5 billion. This compares to a net sales and adjusted EBITDA tailwind of JPY 12.1 billion and JPY 8.8 billion for the same period last year. The positive tailwind of JPY 7.4 billion seen in the first half continues to be due to PCR testing in the LSIM business unit and ULT sales into Europe by our biomedical business unit.
The headwind of JPY 3.7 billion was due to continued weakness seen in esoteric testing in LSIM and loss of sales in Epredia due to the lockdown of its Shanghai factory in Q1. For the full year, we now expect the net sales tailwind of JPY 8.5 billion. This is up slightly from the JPY 7.5 billion forecasted in August. The impact on adjusted EBITDA for the full year is now expected to be JPY 3.7 billion, a significant decrease from the JPY 14.8 billion reported in the previous fiscal year. It is an increase from the JPY 2.1 billion expected in August. The increase in the revised forecast is mostly due to additional ULT demand in our biomedical business unit and slightly higher margins on expected PCR tests.
Slide 18 provides a reconciliation between operating profit to adjusted EBITDA and a conversion of IFRS reported profit attributable to owners of the parent to a cash basis. On the top half of the slide, you can see that the only material item between operating profit and EBITDA is depreciation, which decreased year-on-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, most of which, though, I've already noted in last quarter. First, we had structural reform expenses of JPY 3 billion, JPY 2.3 billion of which was incurred in the headquarters. These relate to the early retirement support program offered in Japan and the downsizing of our headquarters. About JPY 1.1 billion of the JPY 3 billion was recognized in Q2.
Next, the one-time special compensation of JPY 1.3 billion includes a portion of the retirement allowance paid to our former CEO in Q1. Most of this expense category was recognized in Q1. Lastly, as reported last quarter, there was a profit of JPY 1 billion recorded in the other line in our diagnostics and life sciences segment related to the final termination of our transitional services agreement from our acquisition of Epredia. This contract terminated in Q1, with the final payment being less than what we had accrued. In Q2, we recognized an additional benefit related to the termination of this contract of approximately JPY 30 million. 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 notable items. First, amortization expense of M&A-related intangible fixed assets.
The approximate JPY 550 million increase versus prior year is due to the change in FX rates this year versus last year, as a substantial portion of these assets are denominated in U.S. dollar and euro. Secondly, the JPY 3 billion mark to market on our Senseonics note, which is explained in more detail on slide 25. Finally, the related income tax on these adjustments. In the first half of this year, our cash basis profits came in at approximately JPY 8.4 billion. Overall, on the balance sheet, there was no material changes in our consolidated balance sheet as of September 30th versus March 31. On the asset side, other than a JPY 21.5 billion decrease in cash to JPY 73.7 billion, there was no other material change in our total current or non-current assets.
The decrease in cash was mostly due to loan repayments of JPY 12.9 billion. The payment of our year-end dividend of JPY 4.7 billion and a JPY 4.8 billion increase in working capital usage, mostly due to a build in inventory in our biomedical business unit. The JPY 6.5 billion increase in goodwill is mostly due to FX, and tangible and intangible fixed assets remained 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 27. Like on the asset side of the balance sheet, there were next to no changes in our total current or non-current liabilities.
The current and long-term portions of loans payable increased by JPY 1.7 billion from JPY 307.9 billion to JPY 309.6 billion. The overall increase is due to a JPY 14.6 billion currency translation impact offset by the JPY 12.9 billion repayment. The decrease in our last twelve months adjusted EBITDA versus prior year, coupled with the decrease in cash and the larger loan balance due to FX, resulted in our net leverage ratio rising from 3x at the end of March to 3.6x at the end of September. From here, I want to give you an update on our forecast for this fiscal year. If you go to slide 21, please.
First, regarding exchange rates, we are raising our annual average assumptions for the euro to JPY 139 and the U.S. dollar to JPY 138. This is up from JPY 136 for the euro and JPY 128 for the U.S. dollar used in our August forecast. The change in our FX rate assumptions has a positive impact on both revenues and profit. First, we are revising revenue upwards to JPY 358.3 billion, an increase of about JPY 8.1 billion from the previous forecast. JPY 5.7 billion of this change is due to the change in the FX rate assumption. I will provide a summary of the change by segment when we get to the next slide. We are raising our operating profit forecast by about JPY 300 million.
This change is positively affected by a JPY 3.8 billion flow through on the incremental sales and a JPY 1 billion reduction in expected one-time costs from JPY 6.6 billion to JPY 5.6 billion. These benefits of JPY 4.8 billion are offset by about a JPY 2.5 billion increase in SG&A expenses and depreciation due to the change in our FX rate assumption, and a JPY 2.2 billion adjustment to COGS, driven by increased direct and indirect manufacturing costs in our Epredia business unit and additional meter placements in our diabetes management segment. We are raising our profit before tax by JPY 1.4 billion to JPY 24.1 billion. The increase is calculated by adjusting the operating profit increase of JPY 300 million by the two point.
I'm sorry, the JPY 3.2 billion fair market valuation gain reported in Q2 on our Senseonics convertible note, offset with a JPY 2.1 billion increase in interest expense, of which the majority relates to the increase in interest rates on our U.S. dollar and euro-denominated debt. Despite, though, the increase in profit before tax, you will note we are taking down our profit attributable to owners of the parent by JPY 900 million. Flow through at an effective tax rate on the increase in profit before tax of JPY 1.4 billion corresponds to an increase in net profits of about JPY 1 billion.
We are, though, adjusting this downward by JPY 1.9 billion, as we have decided to take a very conservative position on our ability to be able to establish deferred tax assets in our Epredia business unit, given uncertainty at this time around the direct and indirect cost increases, which I noted previously. Should visibility improve, it is likely that this reserve may not be required. The JPY 1.2 billion increase in EBITDA is comprised of the JPY 3.8 billion flow through on the incremental sales, and the JPY 1 billion takedown in one-time expenses, offset by the increase in SG&A expenses due to the change in the FX rate assumption and the JPY 2.2 billion increase in COGS-related costs at our Epredia and diabetes management business unit. Adjusted EBITDA is being adjusted upwards by JPY 200 million.
This is comprised of the JPY 1.2 billion increase in EBITDA, adjusted by the JPY 1 billion takedown in our one-time costs. Lastly, the net of the above results in about a JPY 800 million takedown in our cash-based profit. However, given that this is not a material change from our prior estimate, we have decided to keep our full- year dividend forecast at JPY 72 per share, and we will pay a JPY 36 interim dividend. On slide 22, we have provided updated forecast by segment. Again, consolidated revenue is being increased by JPY 8.1 billion. Except for JPY 2.4 billion of the JPY 5.7 billion increase in our diagnostics and life sciences segment, all other increases relate to the change in our FX rate assumption.
The largest portion of the JPY 2.4 billion forecast raise in our diagnostics and life sciences segment not related to FX is due to additional demand for ultra-low temperature freezers, primarily in the EMEA region. Despite the increase in the top line, you can see in the bottom section of this slide that our adjusted EBITDA is only increasing slightly from JPY 69.1 billion-JPY 69.3 billion as gross profit flow through on increases in the top line in our diabetes management and diagnostics and life sciences segments were offset by increased SG&A costs due to the change in our FX rate assumption and the increase in cost, related costs in these business units, which I noted on the previous slide. Lastly, operating profit, which is shown in the middle of the slide, is up slightly.
The JPY 600 million drop in operating profit for our diabetes management segment as compared to the flat adjusted EBITDA in the bottom of the slide is due to the increase in depreciation expense due to the change in our FX rate assumption. The JPY 400 million increase in our healthcare solutions segment as compared to the flat adjusted EBITDA relates to the takedown in the estimated one-time costs. Yeah, both of which I noted on the previous slide. Lastly, on slide 23, we provide top-level sensitivity for an exchange guide. I do want to point out here that when calculating any estimate, it is important to understand that we report year-to-date results on a yearly average basis.
Which means that for each one yen movement in the average real rates in our second half versus the first half average, we'll only see a 50% flow through due to the fact that we are currently halfway through our fiscal year. Listen, I will end my presentation here and turn the floor back to Miyazaki-san. I do look forward to answering any questions you may have.