Thank you very much for attending today's presentation of Isuzu Motors Limited's financial results for the second quarter of the fiscal year ending March 31, 2024. Allow me to introduce the Isuzu members. This is Naohiro Yamaguchi, Director of the Board and Senior Executive Officer, Group CFO, and Executive Vice President of the Corporate Strategy Division and Corporate Planning and Finance Division. I'm Yamaguchi. My name is Fumiya Yamakita, Vice President of the Corporate Planning and Finance Division. First, Mr. Yamaguchi will discuss the general overview of the business, while I, Yamakita, will present the financial results for the first half and financial outlook for the fiscal year ending March 31, 2024, in addition to the progress of the midterm business plan. I am Yamaguchi. I will briefly explain the overview of our business. First are the results of the first half.
Profit increased year-on-year due to growing after-sales and successful measures such as price realization, et cetera, and a favorable weak yen trend, despite a decline in profit due to deterioration in market conditions, especially in emerging countries, and negative impacts from fluctuations in material costs. As a result, net sales and all profit levels for the first half marked an all-time high. Turning to the volume of CVs, unit sales to emerging countries declined significantly, while unit sales to developed countries increased due to improvements in part shortages. As for LCVs, unit sales for Thailand decreased sharply due to severe market conditions, while the number of export shipments increased mainly due to backorder pileup, resulting from shortages of parts in the previous fiscal year. Next is the outlook for the fiscal year ending March 31, 2024.
We expect deteriorating market conditions for both CVs and LCVs and consequently revise unit sales downward from the previously announced forecast. On the other hand, we are making an upward revision to the sales amount and profit, thanks to the steady progress in price realization, cost reduction activities, et cetera, in addition to the favorable external environment, such as the fact that prices of materials and other costs have not risen as expected and the yen has weakened. Operating income is adjusted upward by JPY 20.0 billion from the previous forecast to JPY 280.0 billion. I now turn to shareholder returns.
As reported on our company website today, comprehensively taking into consideration the financial conditions, cash flow, expected future revenues, et cetera, we will repurchase up to JPY 50.0 billion of our shares during the current fiscal year, aiming to enhance shareholder returns and improve capital efficiency. We also plan to cancel all of the repurchased shares. Dividend for the fiscal year is expected to be JPY 86 per share, an increase of JPY 6 from the previous forecast, which is in line with the target of the current midterm business plan that states a three-year average payout ratio of 40%. As a result, the total shareholder return ratio of the three-year midterm plan is expected to reach 51.8%. Finally, I would like to report on our business restructuring.
As also announced on our website today, IJTT Co., Ltd., a consolidated subsidiary, will commence a new collaboration with SPARX Group Co., Ltd. and Japan Monozukuri Mirai Fund, aiming to not only deepen existing business but to also expand into new business areas. While IJTT continues to be our business partner, it will also aim to enhance its corporate value. Not only will IJTT keep on being our important supplier and continue to provide parts to Isuzu, but by providing financial support, both Isuzu and IJTT will strive to grow into the future. As a result of the restructuring, IJTT will be transferred from a consolidated subsidiary to an equity method affiliate during the current fiscal year. Further, we expect to report an extraordinary loss of JPY 6.0 billion around March 2024.
I will discuss the business performance of the first half of the fiscal year, ending March 31, 2024. As I mentioned at the beginning, unit sales of both CVs and LCVs decreased from the previous fiscal year. Earnings are as described. I now turn to the full year forecasts of unit sales and earnings for the fiscal year, ending March 31, 2024.... The forecast for unit sales has been revised downwardly from the previous forecast, mainly due to the declined unit sales in CVs for overseas markets and in LCVs for the Thai market. On the other hand, regarding the earnings, the sales and all the incomes will be revised upwardly, as I mentioned at the beginning. That's all from me. Next, I, Yamakita, will explain the financial results of the first half of the fiscal year, ending March 31, 2024, and the full year outlook.
I will explain the global CV unit sales. In the first half of this fiscal year, unit sales in Japan and North America increased year-on-year due to improvements in part shortages, while unit sales in emerging markets, mainly in Asia and Mid and South America, decreased due to severe market conditions caused by rising interest rates and inflation. Next, I will talk about a comparison of the full year outlook for global CV unit sales between the previous and revised full year outlook. The unit sales in Japan have been revised downwardly due to a prolonged lead time to sales. The overseas unit sales have also been revised downwardly to reflect a decline in demand due to rising interest rates and inflation in emerging markets, particularly in Asia, such as Indonesia and Vietnam.
Now, I will talk about the results of the industry sales in Japan and our market share in the first half of the fiscal year ending March 31, 2024. Industry sales of both heavy and medium-duty and light-duty truck segments recovered as constraints in production eased for both Isuzu and other OEMs. The Isuzu market share of both heavy and medium-duty and light-duty truck segments also increased, thanks to the eased constraints in production. Next, let us now look at global LCV unit sales. While unit sales saw a decrease in the Thai domestic market due to severe market conditions, unit sales for export markets increased, mainly in markets where backlogs had accumulated because of part shortages in the previous fiscal year. Now, I will turn to a comparison of the full year outlook for global LCV unit sales between the previous and revised full year outlook.
The unit sales outlook for the Thai domestic market has been downgraded further from the previous outlook, because recovery in the market conditions cannot be anticipated. The unit sales for export markets remains the same, as we see no drastic changes in the demand. I will explain LCV industry sales, our market share, and production units in Thailand in the first half of the fiscal year, ending March 31, 2024. Industry sales dropped significantly compared to that of the previous fiscal year due to worsened market conditions. However, we maintained a high market share continuing from the previous fiscal year. Production units fell from the previous fiscal year due to a large decrease in the production volume for the Thai market. Now, I will touch on industrial engines and after-sales business.
Global industrial engine shipments have been revised downward to the same level as the previous fiscal year, due to deterioration in demand for construction machines in China. On the other hand, we have raised our full year forecast for sales from the after-sales business, reflecting a strong demand, mainly in Japan. Next, I will discuss the analysis of the changes in operating income by comparing the variances between the first half of fiscal year, ended March thirty-first, 2023, and that of the fiscal year ending March thirty-first, 2024. Although unit sales have decreased, operating income increased by JPY 31.0 billion from the previous fiscal year, which is attributable to the improvement in the destination and model mix, strong after-sales business, successful price realization, and effective cost reduction activities. The exchange rates are shown in the upper right table.
Additionally, from this financial results briefing, we have added the euro currency in the exchange rate table. The trend of the weaker Japanese yen against the stronger euro has accelerated. Thus, we are indicating a negative impact from euro-based purchases. I will now touch on the financial results of operating income and beyond. Ordinary income was JPY 158.0 billion, after adding and subtracting the share of profit of entities accounted for using the equity method, foreign exchange gains and others, to the operating income of JPY 143.2 billion. Net income was JPY 88.1 billion after adding and subtracting items, such as income taxes and profit attributed to non-controlling interests from ordinary income of JPY 158.0 billion.
Please note that we recorded in the first quarter, JPY 2.2 billion of extraordinary loss regarding the transfer of our business operations in Russia, and nothing has changed since then. Next, I will discuss the analysis of changes in operating income forecast for the fiscal year, ending March 31st, 2024, compared with the previous fiscal year... Although we expect unit sales to fall from the previously announced forecast, we have raised our operating income outlook by JPY 20.0 billion from the previous forecast to JPY 280.0 billion, thanks to increased price realization, materials and other costs not rising as expected, and the impact of the weak Japanese yen. Foreign exchange assumptions have been revised as listed. I will now touch on the financial results beyond operating income.
Ordinary income is expected to be JPY 300.0 billion, after adding and subtracting the share of profit of entities accounted for using the equity method, foreign exchange gains and losses, and other non-operating income and expenses from the operating income of JPY 280.0 billion. Net income for this fiscal year is based on ordinary income of JPY 300.0 billion, from which the following are added and deducted: income taxes, profit attributable to non-controlling interests, as well as loss on business restructuring of JPY 6.0 billion, and impairment loss on production facilities of a subsidiary in China of JPY 4.0 billion. Regarding the impairment loss of our subsidiary in China, loss related to impairment of production facilities is expected due to surplus production capacity caused by the sluggish Chinese economy.
We are not considering withdrawing our business in China and will continue to work with our partner to expand our business. Next, I will explain the progress of the midterm business plan. Here is an update on the progress during the current midterm business plan. The business environment has changed significantly since the announcement of the midterm business plan in May 2021. While the yen has depreciated significantly, material costs, et cetera, have soared and demand has slowed, mainly in emerging countries, due to rising interest rates and inflation. With regard to profit and loss, we aim to achieve the quantitative targets set out when we formulated the midterm business plan by promoting price realization and cost reduction activities. Although ROE has not reached the midterm business plan target of 12.5%, we will continue to strive to achieve it through earnings growth.
Next, I would like to explain shareholder returns under the midterm business plan. The basic policy in the current midterm business plan includes returning profits to shareholders based on the level of profitability for each fiscal year, after comprehensively considering the balance between securing funds for growth investments and bolstering internal cash revenues for maintaining financial soundness, as well as repurchasing treasury shares in a flexible manner. In accordance with this policy, as Mr. Yamaguchi stated at the outset, we will repurchase treasury stock and increase dividends. We will repurchase our shares up to JPY 50.0 billion during the current fiscal year, with the aim of enhancing shareholder returns and improving capital efficiency. We plan to cancel all the acquired shares.
As to the dividends, in accordance with the average dividend payout ratio of 40% set in the current midterm business plan, the annual dividend will be increased by 6 JPY from 80 JPY to 86 JPY per share. As a result, the total shareholder return rate of this 3-year midterm plan is expected to reach 51.8%. Last but not least, this slide shows changes of unit sales and financial indicators of the midterm business plan. This is the end of Isuzu Motors' financial results briefing of the second quarter of the fiscal year, ending March 31, 2024. Thank you.