This is Fukumoto, Director Executive Officer, General Manager of Finance and Accounting of IHI Group. I will explain IHI Group's financial results for the first nine months of the fiscal year 2023 based on the PowerPoint presentation materials disclosed at 3:00 P.M. today. Please turn to page four. This slide shows an overview of the results. In the consolidated results for the third quarter of the fiscal year 2023, basic assumptions for the estimated amount of impact based on our share in the program of the additional inspection program for shipped PW1100G engines, for which losses were recorded in a lump sum in the previous quarter, remain unchanged, except for foreign exchange rates, as yen at the end of December appreciated from the end of the previous quarter.
We will continue to work on this issue as a top priority in order to reduce customers' impact and to regain trust from customers. Next, as for our earnings capacity, we had steadily accumulated profits in Q3. Overall, we are making solid progress toward achieving the FY 2023 full year forecast. In the Civil aero engines business, while sales of main engine units centered on PW1100G engines continue to increase, steady growth in sales of spare parts contributed to the recovery of profit. In three core non-aero business segments, with regard to reflecting the soaring prices of raw materials and equipment in selling prices and strengthening the cost structure, although there have been some progress, delivering results in some areas is expected to be delayed.
The IHI Group aims to secure profit toward the end of the fiscal year by accumulating periodic inspections and after-sales services and others that we have continued to focus. Next on cash flows. Tough conditions persisted in the third quarter, as we are increasing working capital for initiatives to increase production in the Civil aero engines business amid continuous instability in the supply chain. Typically, as payment collections are accumulated toward the end of the fiscal year in many businesses, we will meticulously promote payment collections. Details will be explained using the following slides. Please turn to page five. This slide shows the consolidated results, including orders received and the income statement. Orders received was JPY 877 billion. Revenue was JPY 866.6 billion. Operating income was a loss of JPY 103.7 billion.
Please note that the impact of additional inspection program for PW1100G engines, to which losses were recorded in the second quarter, and the impact of IHI E&C settlement of litigation are shown as special factors. As described at the bottom, the impact of PW1100G changed from the second quarter only due to the effect of foreign exchange rate changes. The amounts excluding these special factors are shown on the right for reference. Operating profit, which remained at JPY 16 billion in the second quarter earnings, increased up to JPY 60.7 billion in the last three months. As shown at the bottom of the page, the average exchange rate for revenue was JPY 144.12 to the US dollar. There was JPY 9.39 depreciation from the same quarter of the previous fiscal year. Please turn to page six. For orders received and order backlog by segment.
Orders in Resources, Energy and Environment reflect the impact of litigation settlement. Orders in Aero Engine, Space and Defense reflect the impact of PW1100G. There is no impact from the special factors in order backlog shown at the right. The total order backlog was JPY 1,320.2 billion, up by JPY 20.7 billion from the end of the previous fiscal year. Please refer to the next page as I will explain year-on-year changes in orders excluding these two special factors. Please turn to page 7 for orders received and order backlog by segment excluding the special factors. Orders increased in all the reportable segments except for Resources, Energy and Environment. In Resources, Energy and Environment, orders decreased due to reaction to construction work orders, which was accumulated for large-scale gas-fired power plant projects in Southeast Asia recorded in the same period of the previous year.
In Social Infrastructure, orders increased in bridges and water gates, among others. In Industrial Systems and General-Purpose Machinery, orders increased mainly in vehicular turbochargers. In Aero Engine, Space and Defense, orders increased in spare parts in Civil aero engines. In addition, orders increased more in defense systems for aero engines and missiles and so forth for the Defense Ministry. Please turn to page eight for revenue and operating profit by segment. Revenue and operating profit on this page reflect decreases due to the two special factors. I will explain revenue and operating profit excluding the special factors using the next page. Please turn to page nine for revenue and operating profit by segment excluding the special factors. Revenue increased steadily in all the reportable segments except for Social Infrastructure. Operating profit decreased slightly year-on-year in Resources, Energy and Environment and Social Infrastructure but in all four segments, we were able to accumulate profits.
Change in operating profit from the previous fiscal year is explained on the next slide. So on this page, I will explain year-on-year changes in revenue. In Resources, Energy and Environment, revenue increased due to the progress in construction of gas-fired large-scale power plant projects in Southeast Asia and also due to increase in lifecycle businesses in carbon solutions despite lower construction volume in nuclear energy. In Social Infrastructure, revenue was pretty much flat despite slight decreases in bridges and water gates. In Industrial Systems and General-Purpose Machinery, revenue increase was attributable to vehicular turbochargers. In Aero Engine, Space and Defense, revenue increased due to higher sales of main units of engines and spare parts for Civil aero engines and also due to yen depreciation. Please turn to page 10.
This is a breakdown by segment of the year-on-year changes in operating profit. Change in revenue had JPY 4.9 billion negative impact on operating profit due to decreasing construction volume in nuclear energy and also due to increasing sales of engines in the early phase of mass production in the Civil aero engines business serving as a profit decreasing factor despite positive contribution from higher sales of vehicular turbochargers. Change in construction profitability pushed up operating profit by JPY 2.4 billion. Among other factors, this was mainly as a result of profitability and productivity improvement centered on engines in the Civil aero engines business despite a temporary change in profitability due to the impact of recording the necessary costs in advance in some bridges and water gates construction projects. The positive impact from the changing foreign exchange rate was JPY 8 billion centered on Civil aero engines.
Change in SG&A pushed down operating profit by JPY 10.4 billion due to increasing R&D for future growth and personnel costs along with wage increase. Please turn to page 11. This is the breakdown of finance income/costs. Foreign exchange losses was JPY 5.8 billion. Toward December end, the yen appreciated. And as we further hedged our foreign exchange exposure, FX losses booked was mostly flat year-over-year. The share of profit in equity method affiliate was a profit of JPY 2.5 billion. This is a significant increase year-on-year as Japan Marine United, one of the equity method affiliates, returned to a profit from a significant loss in the same period of the previous year. Other finance income costs deteriorated by JPY 1.6 billion due mainly to increase in interest payments. Please turn to page 12 for consolidated results of financial position.
Total assets increased by JPY 147.4 billion to JPY 2,089.4 billion. Inventories increased mainly in Civil aero engines as securing parts inventory for production increase remains a priority amid lingering supply chain instability. Refund liabilities in the middle of the chart includes impacts from additional inspection programs for PW1100G-JM engines. Just a line below is the balance of interest-bearing liabilities, which became JPY 682.6 billion reflecting our initiatives to secure liquidity of funds during this fiscal year. Total equity decreased by JPY 112.3 billion to JPY 343.8 billion. As a result, debt-to-equity ratios stood at 1.99x ratio of equity attributable to owners of parent became 15.2%. Please turn to page 13. This is consolidated cash flows. Due to the increase in working capital such as inventories in Civil aero engines, as I explained earlier, cash flows from operating activities recorded are JPY 87.8 billion outflow.
As in the past years, we will continue to collect working capital toward the end of the fiscal year, especially to ensure the scheduled receipt of payments. And we will continue to closely monitor the impact of the additional inspection program for the PW1100G-JM engine while thoroughly implementing working capital improvement initiatives. On pages 14 and 15, R&D CapEx depreciation results and revenue breakdown by regions are shown. Now, I'd like to touch up on the forecast for the full year of FY 2023. Please turn to page 17. The current forecast has been changed from the November 7th forecast in terms of orders received and revenue. However, there are no changes in operating profit and other profit at each level for the entire company. Also, as for the impact from the two special factors, there are no changes from the previous announcement.
Orders received increased JPY 50 billion, and the revenue is expected to increase by JPY 30 billion. Currency assumption is JPY 140 to the US dollar, no changes from previous assumption. FX sensitivity on operating profit is estimated to be JPY 400 million per JPY 1 , excluding special factors for the remaining three months. Please turn to page 18. This shows orders received forecast by segments. Like always, for Resources, Energy and Environment, and Aero Engine, Space and Defense, impacts from special factors are included. Changes to orders received forecast by segment will be explained using the reference figures on the next page, excluding the special factors. Decrease in Resources, Energy and Environment is an impact from delay in carbon solution orders. In Social Infrastructure, delayed water gates and bridges orders to the next fiscal year is reflected.
In Aero Engine, Space and Defense, we expect to win orders for defense systems in response to the increased defense budget, especially we expect to win orders related to missiles. Please turn to page 20. This is revenue and operating profit forecast by segments. I'm repeating myself, but impacts from special factors remain unchanged from the previous announcement. Therefore, for OP changes by segments, please look at the reference figures excluding special factors on the next page. Please go to page 21. On this slide, I will explain about the changes to the revenue. In Resources, Energy and Environment, revenue increase from progress in construction and periodic inspections and after-sales service, among others, are reflected. In Social Infrastructure, revenue decrease from delays in sales such as shield systems are factored in. Please turn to page 22. This page shows analysis in change in operating profit from the previous forecast.
In Resources, Energy and Environment, we factored in profit increase due to revenue increase. In Social Infrastructure, profit decrease due to sales delays to next fiscal year is reflected. Also, mainly for overseas bridges and water gate projects, we are negotiating for increased contract amount. But conclusion within this fiscal year became uncertain. In Industrial Systems and General-Purpose Machinery, delays in sales for logistics and industrial systems and parking, as well as delays in expected pass-through of soaring raw material and equipment prices, and delays in realizing cost structure enhancements are reflected. At the same time, business restructuring of vehicular turbocharger business is reflected in the forecast. For Aero Engine, Space and Defense, there are impacts from sales delay related to rockets into next fiscal year. But because of the favorable tone of forex, there are no changes overall in the forecast.
Lastly, in adjustment, in addition to the effects from corporate-related cost reduction, the entire amount of JPY 10 billion in structural reform cost that was assumed is used entirely. Please go to page 23. This is cash flow forecast. By reflecting cash flow deterioration of JPY 10 billion due to a decrease in operating profit of Industrial Systems and General-Purpose Machinery, operating cash flow will deteriorate by JPY 10 billion to inflow of JPY 65 billion. At the same time, cash flow from investing activities is expected to improve by JPY 10 billion to an outflow of JPY 80 billion due to reassessment of investment priorities. There are no changes for free cash flow forecast of negative JPY 15 billion.
Lastly, as the first year of Group Management Policies 2023, in the remaining two months, in order to achieve the new forecast announced today, we will accelerate the initiatives stated in the policy. In addition, in order to restore our damaged balance sheet, we will consciously take measures to restore financial discipline. The following slides are an overview of reporting segments and reference materials for your later references. This concludes my explanation.