Good morning. I am Satoshi Kimura from the Corporate Planning Headquarters. I assume the position of Senior Managing Executive Officer of the Corporate Planning Headquarters from this April. Thank you for attending our financial results briefing today. I will walk you through the summary of our FY 2021 financial results and our forecast for FY 2022. Since this is my first time to give the briefing, I might not be able to cover everything. If there are any points that are unclear, I will be more than happy to answer your questions. With that, let me begin my explanation of our financial information. Page five, please. This captures the main point of our FY 2021 financial results. We received large-scale overseas projects and long-term O&M orders, which led order intake to exceed JPY 670 billion. Order backlogs surpassed JPY 1 trillion. Please turn to page six.
As mentioned earlier, order intake far exceeded our initial forecast thanks to the large-scale overseas projects, and we posted a record high figure of JPY 677.9 billion, up about JPY 250 billion year-on-year. The main factors contributing to this increase are Inova's heightened competitive advantage and the emergence of new markets outside EU, both of which led Inova to record order intake of JPY 317.8 billion, which is triple JPY 104.9 billion registered in FY 2020. Order intake of machinery and infrastructure also increased by JPY 22.8 billion due to an increase in orders for process equipment, precision machinery, and press machine. Both net sales and operating income exceeded the initial forecast by approximately 10%. Net income after tax increased 86% year-on-year, landing at JPY 7.8 billion. This is the first time since FY 2013 that net income exceeded JPY 7 billion.
As a result, ROE improved significantly to 6.1%, exceeding 5% for the first time in five years. Page seven shows FY 2021 results by segment. Now please look at the column entitled Difference C minus A, which is a year-on-year comparison. First, order intake. Environment was up to JPY 225.7 billion due to the JPY 212.9 billion increase in orders received by Inova for large projects in Dubai and Westfield.
Machinery and infrastructure was up by JPY 22.8 billion. The increase of JPY 4.9 billion in press machine, JPY 10.3 billion in process equipment, and JPY 7.5 billion in precision machinery were the contributing factors. Next, net sales environment was up by JPY 37.8 billion. Inova's net sales increased by JPY 29.4 billion while that of electricity sales rose by JPY 5.5 billion. Net sales of machinery and infrastructure was down by JPY 4.6 billion, while net sales of precision machinery increased by JPY 3.5 billion.
Sales in process equipment and press machine decreased by JPY 5 billion and JPY 2.1 billion, respectively. Operating income of environment was almost flat year-on-year. Details will be explained later on page nine. Machinery and infrastructure remained unchanged as well. The increase in processed equipment was offset by the decrease in pressed machine. Page eight, order backlog. Please look at the column entitled End of March 2022 B. Total exceeded JPY 1 trillion for the first time, up 33% year-on-year recording JPY 1.018 trillion. In particular, the order backlog of long term operation increased 63% to JPY 486.2 billion. Of this amount, Inova registered about JPY 155 billion, the majority of which is attributable to long-term operation orders received along with the EPC booked in FY 2021. Page nine, breakdown of changes in FY 2021 operating income. A positive contribution of JPY 1.2 billion was made by environment Domestic O&M.
In particular, electricity sales, which booked a loss in FY 2020 due to a rise in fuel price and the bankruptcy of an off-taker, made a turnaround and recorded an increase in operating income given its capability to provide power during winter when the demand was very tight. Inova's operating income was up by JPY 800 million while that process equipment increased by JPY 400 million. Operating income was pushed down by JPY 2.4 billion by environment domestic, given the absence of profitable water business recorded in FY 2020. Decrease in press machine sales pushed down the operating income by JPY 300 million. Page 10, please. Non-operating profit and loss deteriorated by JPY 1.2 billion year-on-year due to FX losses of Inova and other entities. Gain and loss on investment by equity method improved by JPY 800 million, offsetting the negative impact remain at JPY 200 million.
Extraordinary profit includes a JPY 3.8 billion gain on negative goodwill from Inova's acquisition of Steinmüller. Extraordinary loss includes two impairment losses in the energy-related business, one being Ibaraki Works' impairment loss of JPY 1.6 billion. For the electricity sales business, we have secured a new off-taker to replace the off-taker who went bankrupt last year. In our future profit plan, we have factored in the profit from the capacity market that is scheduled to open in FY 2024. However, when the bid for FY 2025 was held, we faced a dramatic fall in unit price. Given this, we revisited our cash flow plan and decided to recognize an impairment loss on fixed asset. Accordingly, Natural Energy Japan booked an impairment loss of JPY 2.1 billion.
Furthermore, the procurement of food waste, which is used as the fuel for the biogas facility owned and operated in Akita Prefecture by Natural Energy Japan, was less than planned. Under such a backdrop, we reviewed our cash flow plan. As a result, the book value of the asset was reduced to its residual value. Page 11, balance sheet. The cash and deposits remain high at JPY 67.2 billion. Interest-bearing debt amounted to JPY 91.9 billion. Net interest-bearing debt, which is the net of cash and deposits, is shown at the bottom of the chart. Net interest-bearing debt decreased significantly to JPY 24.7 billion from JPY 50.8 billion posted in FY 2020. Shareholders' equity increased by JPY 4.9 billion, but the shareholders' equity ratio declined 0.9%- 28.5% due to the increase in total assets. Page 12, cash flows. I will focus on cash flows from investing activities.
The investment cash flow consists of proceeds from the sale of investments in affiliates, mainly the investment in Aomori- Seihoku- Oki SPC, and an increase in cash and deposits due to the acquisition of Steinmüller, which was rich in cash and deposits. In addition, a decrease in the purchase of tangible fixed assets resulted in a positive cash flow of approximately JPY 15 billion year-on-year. Next, forecast of FY 2022. Page 14, please. Order intake is expected to be JPY 500 billion. In FY 2021, there were some special projects such as the Dubai project.
In the absence of such projects, FY 2022 order intake is expected to decrease year-on-year, but a high level will still be maintained. Net sales is expected to remain flat year-on-year at JPY 440 billion, and operating income is forecasted at JPY 20 billion. Net income is expected to be JPY 10 billion, and ROE to improve to 7.4%.
Page 15, FY 2022 order intake, net sales, and operating income by segment. Details will be explained on pages 18 and onward. Before going into the details, however, let me explain the breakdown of changes in FY 2022 operating income using page 16. A JPY 2.9 billion increase is expected from environment domestic EPC, driven by higher sales of energy from waste facilities and lower trouble costs. A JPY 2.8 billion increase is anticipated from Hitachi Zosen Inova due to higher EPC sales and improved profit of subsidiaries' O&M business.
Both press machine and process equipment are expected to increase operating income by JPY 300 million. A JPY 1.5 billion reduction in operating income is forecasted to arise from Environment Domestic O&M given the decreasing retrofit and refurbishment and profitable long term operation work. Operating income from infrastructure is expected to fall by JPY 400 million due to the decrease of large scale marine projects that existed in FY 2020.
Next, details by segments. Page 18, environment. Order intake in FY 2022 is forecasted to be JPY 350 billion, with Inova remaining at a high level. Domestic is expected to decrease slightly, but environment domestic EPC is forecasted to increase. Net sales is expected to decrease year-on-year, but Inova is making steady progress. Looking back, in FY 2020, Inova's net sales was JPY 82.3 billion, and it exceeded JPY 100 billion for the first time in FY 2021, reaching JPY 111.7 billion.
In FY 2022, it is expected to record JPY 115 billion, a slight increase year-on-year. The environment domestic is also anticipated to perform well. Operating income of FY 2022 is expected to be JPY 16.5 billion, up JPY 4.1 billion. Although Inova has been increasing its operating income after a large loss in FY 2018, the actual result for FY 2021 was JPY 2.7 billion, which was JPY 800 million less than the JPY 3.5 billion initially forecasted.
This is due to the deterioration of the market environment including the prolonged impact of the pandemic as well as the increase in material and logistics costs especially between January and March. Nonetheless, compared to FY 2020, operating income increased by JPY 800 million. In FY 2022, we expect an improvement in businesses other than Inova, in particular an increase in profit from higher sales of environment domestic EPC. Page 19, results of the former machinery and infrastructure segment.
Order intake in FY 2021 showed a recovery trend in press machine and process equipment, and an increase in precision machinery. Order for marine diesel engine remained at a high level, although it decreased in FY 2021 due to the absence of large orders that existed in FY 2020. Net sales of press machine and process equipment decreased due to the decline in order intake in FY 2020 that our precision machinery increased.
Operating income increased in process equipment, precision machinery, and infrastructure. Page 20, comparison between the new and old segments of machinery and infrastructure. Machinery and infrastructure segment will be newly categorized into machinery, infrastructure, and carbon-neutral solution segments. Engine SCR process equipment, electrolysis P2G, and wind power will come under carbon neutral solutions segment. Page 21, FY 2022 forecast of the new machinery and infrastructure segment. Order intake is expected to fall by JPY 7.1 billion year on year due to the decrease in precision machinery and other machinery given the absence of large orders that existed in FY 2021. Press machine is expected to register JPY 17 billion flat year over year due to the uncertain recovery in the demand from automobile industry. Both net sales and operating income are expected to increase driven by press machine. Page 22, FY 2022 forecast of the new carbon neutral solutions segment.
Order intake is forecasted to increase by JPY 9 billion, while order for engines is expected to be sluggish. Order for wind power is anticipated to reach JPY 14 billion with the closing of the contract in FY 2022 for the onshore wind power project that had been underway in Aomori Prefecture for some time. Net sales is forecasted to increase by JPY 5.1 billion due to the recovery of orders in FY 2021, mainly from petrochemical process equipment. Operating income is expected to decrease by JPY 100 million, while that of process equipment is expected to increase, and that of engine to decrease. This is the end of my explanation of financial information. Let me conclude with a summary which includes some business information that will be explained later. The domestic environment business is a mature market.
Going forward, the demand will be mainly around rebuild, and in the long run, the demand is expected to be flat or to drop at a moderate pace in line with the decreasing population. On the other hand, given the backdrop of decarbonization, we began to work on new technology demonstration projects such as building a carbon cycle model by converting CO2 capture from waste treatment plants into energy resource. While Inova continues increasing revenue and profit from energy from waste, we will work on expanding biogas O&M and its related services.
For the group as a whole, we attain order backlog of JPY 1 trillion and will be achieving operating income of JPY 20 billion, which are major milestones in FY 2021. We posted some record high financial figures as compared to 10- 20 years ago, and figures for FY 2022 will follow the same trajectory. Thank you for your attention. Let's move onto the management and business information presentation by President and CEO, Mr. Sadao Mino.
Good morning. I am Sadao Mino. Thank you for taking time out of your busy schedule to attend our financial results briefing. I would also like to take this opportunity to thank you for your continued interest in and support of our company. Let's proceed with the explanation of our management and business information. Page 30 shows the targets of our midterm management plan FY 2022, the results up to FY 2021, and the forecast for FY 2022. As in the case of two previous years, order intake and net sales are expected to far exceed the JPY 400 billion level set in our medium-term management plan.
In particular, order intake in FY 2021 reached a record high JPY 677.9 billion thanks to the large projects that Inova was able to win in Dubai and the U.K., including long-term operation contracts. Inova's management reform has proven to be successful, and its performance is steadily recovering. Net income for FY 2021 was JPY 7.8 billion, and ROE was 6.1%. In FY 2022, which is the final year of the medium-term management plan, we forecast operating income of JPY 20 billion and an operating margin of 4.5%. However, we will continue our efforts to achieve the medium-term management plan goal of an operating margin of 5%.
Page 31 and 32 show the progress and the major achievement of the medium-term management plan. As for the enhancement of the added value of products and services, demonstration test for automated operation of energy from waste plant achieved over two week fully automated non-manual operation, and a stable operation without combustion deterioration over one month showing the global top level results. Besides the environment business, IoT and AI are utilized in many businesses. In new products and new business models, we established P2G Square & Facilities, and three projects were adopted for NEDO's Green Innovation Fund Project. As for the collaborations with overseas group companies including Inova and Osmoflo, in addition to the project collaboration in Dubai and Iraq, we began to deliver international procurement and joint development.
In achieving work style reform by improving operational efficiency and productivity, as human resource development is positioned as a top management priority, we are implementing initiatives of next generation management resources development, global talent development, and DX business leaders development. Considering the pandemic of COVID-19 and the promotion of work/life balance, various efforts are being made to improve working environment and unleash full potentials of employees by promoting work from home and developing childcare leave systems. Please turn to page 32. As for the promotion of business selection and concentration and allocation of resources to growth areas, in business portfolio management, we reviewed the production bases to be in line with the business transformation and integrated shield machine business with Kawasaki Heavy Industries. We reviewed portfolio and promoted optimized resource allocations by adding the long-term assessment from sustainability perspective onto the quantitative assessment of profit and others by business.
As for the expansion of operation and maintenance business, in addition to the domestic environment business, we are focusing on global and other domain O&M businesses as well to enhance profitability. We started to deliver by receiving orders for EPC and long-term O&M in UAE and U.K., and expanding maintenance business in marine engines and process equipments. We continue these initiatives, enhance profitability, and expand business domains both in upstream and downstream of value chains. Please turn to page 33. As for initiatives for sustainability, we announced the support for TCFD recommendation in March 2021, and established Sustainability Promotion Office in October to strengthen the promotional structure and review the sustainability related rules. Please turn to page 34.
In line with the growth of overseas business, in July 2021, we established a global headquarters which consists of Administration Department and Global Management Unit that supervises three separated regions to centralize the management operations of overseas group companies and bases. We are working on to expand the group synergies to expand overseas business, strengths and governance, and risk management globally. In April 2022, we established carbon neutral solution business headquarters to contribute to the decarbonization through product and services. It covers clean energy generation and supply business, including wind power generation and power to gas business, fuel shift to Marine engine, and the processed equipment which are related to decarbonization. We will develop the carbon neutral solution business into the major business in the group through the collaboration between business headquarters and group companies with carbon neutral solution business headquarters as a key driver.
We continue and develop initiatives in Forward 22 to connect to the FY 2022 Long Term Vision Hitz 2030 Vision. Page 36 shows orders received in Japan, and Page 37 shows global orders during the second half of FY 2021. Page 37 also shows orders received by Inova in April 2022. Page 38 and 39 show orders received during the first half of FY 2021 as reference. I will skip the explanation of each project, and please turn to page 40. This slide shows environmental business major projects except those of Inova. In Japan, majority of projects are DBO type, which covers build and operate. Due to COVID-19, there were some delays and tightness in logistics, but they did not affect the process substantially, and each project is proceeding steadily. Page 41 shows major projects of Inova.
In Ivry project in France, due to design change by client and influence of COVID-19, project schedule is being reviewed. Let me explain the project conditions in Moscow, Istanbul, and Dubai later. I will explain the update of business. Page 42 shows environment business. In FY 2022, recovery in orders is expected energy from waste EPC. We aim to achieve profitability of energy from waste EPC separately. In electricity sales business, demand as auxiliary power source will continue for the time being. But we consider the shift to clean fuel and the use of summer power plant in technological development. In water business, we aim to work on increasing private sector outsourcing of O&M. Globally, we enhance collaboration with local companies for growing demand in China and Southeast Asia.
As for the increase in steel prices and others, we have not been materially affected so far, but as prolonged cost inflation is expected, we will closely monitor the situation and continue to strive to reduce costs. Page 43 shows the update of Inova business. Orders in the previous fiscal year exceeded JPY 150 billion, both in EPC and O&M services. Orders in FY 2022 will be lower than the previous year, but the dominance in European and Middle East market are sustained, and high level of orders over JPY 100 billion in EPC will continue in FY 2022. Inova had the issue of volatility due to concentration of large project. But it is transforming to the sustainable and stable earnings structure by strategically expanding small renewable gas facility project and O&M services.
In Europe, we announced in March the target to double the renewable gas production in EU by 2030 to diversify energy procurement given the fluid Ukraine situation. Renewable gas market will continue to expand. In North America, we developed the engineering base expecting the large potential demand for renewable gas. Expansion of O&M services is shared policy across the group, and Inova acquired Steinmüller and developed service footprint. In development of next-generation technology in EU, where the environmental initiatives are more advanced, we are promoting group-wide technological development, including clean hydrogen production using power generated by energy from waste facility and capture and reuse of CO2. Page 44 shows update of machinery and infrastructure business.
Orders in press machine were under a recovery track since the second half of the previous year, but due to Russia and Ukraine conditions, the pace of recovery is growing increasingly uncertain, and our order plan is cautious. In precision machinery, to meet strong semiconductor-related demand, we established a basis in China and Korea. In infrastructure business, bridge orders are expected as 180,000 tons, comparable to the previous year. In water gate business, redevelopment business of existing dam is revitalized as flood control measures, and we aim to increase orders. Page 45 shows carbon neutral solution business headquarters, which was made anew in this fiscal year. Orders in engine were high in FY 2020 and 2021, but we expect it to peak out in 2022. Profitability continues to be difficult, but by eco-friendly products including SCR systems and after-sales services, we strive to improve profitability.
In process equipment, profitability is expected in this year with the recoveries in petrochemical products. In nuclear equipment, we respond to the decommissioning needs in Japan as well as in the U.S. As announced at the end of April, we are preparing to set up joint venture manufacturing of decommissioning related products with TEPCO targeting October this year. Details will be announced at the appropriate time. In P2G toward social implementation, various demonstration projects are moving forward steadily, including Green Innovation Fund Project of NEDO. In wind power business, we aim to receive onshore wind power EPC project order in Mutsu Ogawara, Aomori Prefecture, jointly working with ITOCHU Corporation and ENEOS. Offshore wind power project in Aomori Prefecture is ongoing. Currently, it is deemed as promising sea areas, but by the end of FY 2022, it will be designated as the promotion areas.
From here, let me introduce latest business topics. Page 47 shows Inova project. Istanbul project was completed in October 2021. Inova has a contract of one year O&M after completion, and it is currently in stable operation. Dubai project order was awarded in June 2021, and currently construction is progressing smoothly as shown by a photo. Page 48 shows acquisition of Steinmüller. Share purchase was completed in February 2022, and the company was renamed to Hitachi Zosen Inova Steinmüller. This acquisition was implemented with a strategy to boost the O&M sales of Inova from CHF 100 million in 2021 to CHF 250 million or JPY 30 billion in 2025. As shown here between Inova and Steinmüller, synergy can be expected both in terms of market and technology.
As for market maintenance demand for existing plants in Germany and Scandinavia, where Steinmüller has a solid track record will be captured. As for technology leveraging boiler and mid-sized project technology we expand businesses. Please turn to page 49. I explain the impact of Russia-Ukraine situation on our business. Inova undertakes a basic design and key equipment for four energy from waste plants in Moscow suburbs. As of today, these facilities are not subject to economic sanction of U.S., EU, Switzerland and Japan. The construction onsite is continuing. Progress as of March 2022 was 66% for all four plants combined and it progressed further now. However, by the enhancement of sanction and procurement and logistic disruption, delay in completion is expected, so we respond appropriately monitoring that situation closely.
For the contract of this project, we use the insurance of Swiss Export Risk Insurance SERV to cover risks including war and sanctions. Page 50 shows the projects adopted by NEDO Green Innovation Fund Project. Page 51 shows initiatives to achieve carbon neutrality, and page 52 shows initiatives to contribute to safe and secure society. They are all announced in press release. Let me skip their explanation today. Please refer to them at your convenience. This concludes my presentation. Hitachi Zosen will continue to strive to meet your expectation, so I like to have you continue the support and cooperation. Thank you for your attention.