Good afternoon. I am Tokunari, CFO of the company. Thank you very much for coming to our financial results meeting despite your busy schedules. I have three points. Action to improve PBR, which is below 1, in response to the request from the Tokyo Stock Exchange. Financial results for the year ended March 31st, 2023, and the forecast for the year ending March 31st, 2024. First on the request from the Tokyo Stock Exchange. Nikon sees improvement of PBR, which is below 1, as an important management challenge. In the Medium-Term Management Plan, which started last year, we set an ROE target that is conscious of cost of equity. The ROE over the past 2 years was over 7%. As the FPD lithography system business cycle will hit the bottom this year, we expect a decline in ROE, but we expect recovery next year.
As for the reasons for PBR below 1, as PBR is equal to ROE multiplied by PER, we believe that both the lower expected ROE due to lower profits this fiscal year and the lower PER compared to our competitors are the causes. In particular, we recognize that the challenge is to quickly launch growth businesses in order to improve PER. Based on this recognition of the current situation, Nikon will promote both investment in sustained growth and shareholder returns to ensure that we achieve the financial targets set forth in the Medium-Term Management Plan. Specific measures are on the material. First, in Imaging Products Business, we will launch new products, including the new Z 8 mirrorless camera announced yesterday, in order to achieve earnings recovery and ROE improvement next year.
In the Precision Equipment Business, starting next February, Nikon will expand worldwide sales of the S625E ArF immersion lithography system, which achieves the highest productivity in the history of Nikon's lithography systems for the semiconductor market, which is expected to grow over an extended period. We will also strive to enhance disclosure of information to investors about our growth businesses, in particular our rapidly expanding healthcare business and the digital manufacturing business, which executed the SLM acquisition. I will talk about shareholder returns later. ROE will be at a standstill this fiscal year. As President Umatate will explain later, we feel that we have made satisfactory progress in the first year of the midterm plan.
As seen in top line growth, business is expanding steadily, and we will steadily implement various measures to achieve revenue of JPY 700 billion, operating income of JPY 70 billion or more, and ROE of 8% or more in the final year of the Medium-Term Management Plan. Next, I will talk about capital allocation, which will be the basis of investment in sustained growth and shareholder return. In the Midterm Plan, the policy is to allocate between JPY 700 billion and JPY 800 billion of cash and deposits for distribution in the ratio shown on the right, while maintaining the equity ratio in the upper 50s, as you see on the left. The areas shown in yellow are actual allocations last year. For example, in the upper right, strategic investments, JPY 88 billion was allocated for the acquisition of SLM Solutions in Germany.
The total allocation for strategic investments, R&D, and capital expenditures is approximately 90% of the total, and the policy is to use capital primarily for growth. This framework remains unchanged, but we intend to flexibly implement share buybacks in the future with additional cash and deposits to be generated from the sale of cross-shareholdings and other activities. This slide shows specific shareholder return measures. Last year, we increased the year-end dividend by JPY 5 because the performance was better than what was expected at the beginning of the fiscal year. From this fiscal year onward, we intend to increase the dividend towards JPY 60 for the final year of the Medium-Term Management Plan. Furthermore, we will flexibly implement share buybacks of JPY 30 billion or more during the Medium-Term Management Plan period and will also continue to consider strategic investments in M&A.
Let me talk about the relationship between corporate value, officer compensation, and sustainability. Nikon's officer compensation system is designed to be linked to corporate value with more than half of officer compensation linked to performance. Specifically, officer bonuses are linked to ROE and operating profit, while stock-based compensation, PSUs, or Performance Share Units, are linked to sustainability-related KPIs and other factors. Sustainability for Nikon means creating social value through core technologies. This is central. We are also actively engaged in greenhouse gas reduction and diversity, equity, and inclusion, and have received higher ratings from external evaluation organizations than our peers. We will strive to earn the appreciation of the market by firmly implementing these Medium-Term Management Plan strategies and promoting both investment in sustained growth and shareholder returns.
Let me talk about the financial results last year. Revenue was JPY 628.1 billion. Operating profit, JPY 54.9 billion. Profit attributable to owners of the period, JPY 44.9 billion, which posted growth in both revenue and profits over the previous year. All segments but the Precision Equipment Business grew both revenue and profit. Annual dividend will be JPY 45, which is JPY 5 higher than the previous forecast. In the previous year, we acquired 21.45 million shares at JPY 30 billion, and we canceled all the stock, including the 5 million treasury stock we already had. What I just explained is in table format here. The weaker yen contributed significantly to the increase in both revenue and profit, as you see on the right bottom side.
Slide 12 is performance by segment. Excluding Precision Equipment Business, we saw increase in both revenue and profit. In particular, the Imaging Products Business posted a 2.2-fold year-on-year increase in operating profit to JPY 42.2 billion, and the Healthcare Business posted a 2.6-fold increase to JPY 11.5 billion, both significant growth, with Healthcare recording record high revenue and operating profit. Let me explain by business segment. First, in the Imaging Products Business, both revenue and profit increased significantly due to higher average selling prices for both parties and lenses, as well as the impact of foreign exchange rates. Operating margin landed at a high level of 18.6%. Slide 14 is the Precision Equipment Business. This is the only business segment out of 5 which posted reduction in both revenue and profits.
Revenue from FPD lithography systems declined as customers reduced capital investment in response to falling panel prices, while revenue from semiconductor ArF lithography systems were firm and increased, but overall revenue and profits declined. In the healthcare business, revenue increased 35% year-over-year, and operating profit was 2.6 times. The target for the final year of the Medium-Term Management Plan of JPY 90 billion in revenue and JPY 10 billion in operating profit was achieved three years before schedule. Life Science solutions, mainly biological microscopes, and Eye Care Solutions, mainly retinal imaging equipment, both expanded. Slide 16 is the component business. EUV-related components, other semiconductor-related optical parts, encoders for robots performed well, resulting in an increased revenue and profit. On the other hand, the contracted additive processing company in the US, Morf3D business, was poor.
We reviewed its position and recorded an impairment loss of JPY 3.9 billion. From this fiscal year, Morf3D will operate as a subsidiary of newly established Digital Manufacturing Business Unit. I will touch upon the details later. The last segment is industrial metrology and others. Others include the newly acquired company, SLM Solutions. Revenue increased due to strong sales of video measuring systems and X-ray and CT systems in the Industrial Metrology Business Unit, and also due to newly consolidating SLM Solutions. Operating profit increased despite a three-month amortization of intangible assets associated with the acquisition of SLM Solutions. Next, I would like to explain the outlook for the current fiscal year. At the bottom of this page, please find the assumed exchange rate, JPY 130 to a USD, and JPY 140 to the EUR.
At the top, for the full fiscal year, we forecast JPY 665 billion revenue, operating profit JPY 43 billion, and profit attributable to owners of parent, JPY 35 billion revenue increase while operating profit decline. The increase in revenue is due to the solid performance of existing businesses and also due to SLM Solutions revenue to contribute for full year. Profit decline is mainly due to the FPD Lithography Business in the Precision Equipment Business and because the new Digital Manufacturing Business starts with an operating loss. We plan to increase the annual dividend by JPY 5 to JPY 50 per share, anticipating a recovery next fiscal year onward. Please go to slide 20. A list of the main forecast highlights in numbers this fiscal year with year-on-year changes.
Lower right, we expect the yen to appreciate from last year, which will have a negative impact of JPY 2.4 billion on operating profit. Starting from this fiscal year, we partially changed our reporting business segments, as you can see on the right side, we have a new segment, Digital Manufacturing Business Unit. This segment consists of Industrial Metrology Business Unit and a newly established Advanced Manufacturing Business Unit. The Morf3D and other material processing business was previously in the components business, SLM Solutions, which was in others, and also the material processing research and development by Next Generation Project Division will be combined to form Advanced Manufacturing Business Unit starting from this fiscal year. Slide 22 shows our forecast for this fiscal year based on this new reporting segments. I will explain five segments separately in the following slides. First, Imaging Products Business.
As the digital camera market continue to shrink, Nikon will continue to focus on mid- to high-end models for professionals, aiming 700,000 units of sale, the same level as last year, by introducing new products such as Z 8. Operating profit is expected to decrease as the benefit of a weaker yen to dissipate and also due to higher sales promotion expenses with the market to normalization. OP margin is expected to be in the 15% range, well above the midterm plan forecast, showing that Imaging Products Business is solid. Slide 24 summarizes Nikon's involvement in the semiconductor manufacturing process. Nikon sells equipment systems as shown at the top of this page, and it provides the components shown at the bottom of this page, equipment manufacturers to integrators. The three segments of Precision Equipment, components, and Digital Manufacturing are the three businesses in the semiconductor-related area.
I will now explain one of these segments, Precision Equipment Business. This fiscal year, revenue is expected to slightly increase to JPY 210 billion, while OP is expected to decrease significantly to JPY 15 billion. FPD lithography system is the bottom of the market cycle, and customer CapEx is delayed. Therefore, as you can see lower left, sales will drop sharply from 29 units last year to 12 units this fiscal year. Although semiconductor lithography system revenue and profits are expected to grow on expanded sales to customers other than our core customers, FPD sales drop is larger, and therefore, the overall profits are going to decline. Last year, the healthcare business OP exceeded JPY 10 billion for the first time, especially life science performed very well.
Considering the FX impact, OP will be JPY 11 billion this year, almost the same level as last year. Slide 27 shows the component business. Robust revenue is expected for EUV-related components and optical parts and components, but overall revenue is expected to be flat year-on-year due to lower sales of customized orders other than semiconductor-related products. OP is to decline impacted by the.
This Medium-Term Management Plan covers the 4 years starting fiscal 2022. First, we defined Vision 2030, and towards the re-realization of it, we identify the target where we will be in 2025 and develop the strategy and measures. Where we will be in 2025 is providing products and services optimized to meet our customer needs. We will move away from end product dependent business and strengthen solutions which combine service and components. Of the 5 businesses, we will stabilize the 2 main businesses, Imaging Products Business and Precision Equipment Business, and expand the 3 strategic businesses: healthcare, components, and Digital Manufacturing. Please turn to page 3. The results for 2022, the first year of the plan, as Mr. Tokunari mentioned, posted increase in both revenue and profits, which was higher than planned.
On the right-hand side is the latest forecast in operating profit by business. The solid line in yellow is the latest forecast of total operating profit, which is profit and losses for each business minus management base cost. There is another line in dotted line, which is the operating profit forecast as of start of the Medium-Term Management Plan period. As you see, for fiscal 2023, although our outlook at the time of start of the Medium-Term Management Plan was that it would be difficult, it actually turned out to be slightly above the Medium-Term Management Plan projection. Please turn to slide four. The revenue for the first year of the plan, fiscal 2022, was higher except for the Precision Equipment Business.
The share of strategic businesses, though, which are businesses other than Imaging Products and Precision Equipment Business in operating profit, for the first time exceeded 30%. Source of profits are diversifying. The service and components business, which is a key point in the Medium-Term Plan, is also growing steadily, especially in optical parts and EUV related components. We aim to achieve growth in the Digital Manufacturing Business following the healthcare and components businesses and achieve the target for fiscal 2025. Please turn to slide 5. This is a plot of the 5 businesses' revenue and profit. The horizontal axis is revenue, the vertical axis is operating margin, and the size of the bubble is operating profit.
The dotted circle is the actual numbers for fiscal 2021, the year before the Medium-Term Management Plan, and the circle in solid is the actual number for fiscal 2022, and the fields in color circles are the targets for 2025. We have the five businesses, and in the middle, we have the company-wide average plotted. First, with regard to the two main businesses shown on the right, the Precision Equipment Business fell short of expectations due to the impact of the external environment and other factors. The Imaging Products Business posted a large increase in operating profit due to strong sales of mirrorless cameras and a tailwind from foreign exchange rates. Meanwhile, with regard to the three strategic businesses on the left, the healthcare business significantly outperformed our expectations and generated profits that even exceeded our 25 targets.
The components and Digital Manufacturing businesses are also making steady progress towards their fiscal 2025 targets. We aim to achieve JPY 700 billion in total sales revenue and promote resilient portfolio management, while also focusing on profitability with an operating margin of 10% or more. In the subsequent slides, I will very briefly review the first year progress of the two businesses in the quality of life area, followed by the three businesses in the industry area. Please turn to slide 6. Imaging Products Business achieved a record high operating margin as structural reforms and a shift to mirrorless products improved profitability. The contents business has started smoothly. Please turn to slide 7.
The healthcare business has greatly expanded its customer base, mainly in the private sector, and has made a leap from turning to profitability for the first time, in fiscal 2021 to more than JPY 10 billion in operating profit in a single year. Based on the analysis and evaluation using microscopy technology cultivated over many years, we are aiming for further growth, including the provision of new values such as Contract Cell Development and Manufacturing.
Please see Slide 8. In the Precision Equipment Business, semiconductors performed well with stable customers and a service expansion, but FPDs were affected by a major market adjustment. In addition, as of April 1st of this year, the FPD Business Unit and the Semiconductor Business Unit were merged into the Precision Equipment Business. This will enable us to flexibly manage the resources of the two businesses and to respond more dynamically to future market changes. Also strengthening initiatives for the future, such as digital lithography systems. Please refer to Slide 9. The component business expanded its business by supporting the sophisticated needs of a wide range of customers in semiconductor-related fields. We will seize various opportunities, such as EUV-related businesses, by leveraging our core competence in the precision and optics. Please see Slide 10. Lastly, the Digital Manufacturing Business.
In order to promote the full-scale expansion of our material processing business, we acquired SLM Solutions of Germany, the largest acquisition ever for Nikon, and established the Advanced Manufacturing Business Unit as of April first this fiscal year. For the first time, Nikon established a business headquarters in the U.S., laying the good foundation for the global business development in Japan and the U.S. and Europe. We are making progress in introducing Laser Radar and X-ray CT systems of the Industrial Metrology Business Unit into customers' production in line. Please go to Slide 11. This page is a summary of the year 1 business operations. Of the 2 main businesses, the imaging business has achieved a significant operating profit growth and will continue to strengthen its product lineup of mirrorless cameras, among others.
In the Precision Equipment Business, we aim to achieve stable earnings by integrating two business to create a business structure more resilient to changes. In strategic businesses, in addition to the rapid growth in the healthcare and the components business, we made a strategic progress for the future in the Digital Manufacturing Business. For FY2023, it's the midyear of our midterm plan. While maintaining the strong performance of the imaging and healthcare businesses, we will continue our efforts to realize our FY25 goals while paying attention on the Precision Equipment Business with market slowdown and a newly established Digital Manufacturing Business. Please refer to Slide 12. I would like to explain the status of a capital allocation. Nikon recognize that our shareholders and society expect us to grow as a technology company, and we will allocate most of our cash and deposits for distribution to growth.
By FY20, out of the total JPY 700 billion-JPY 800 billion resources, our policy is to allocate about 30% to strategic investments such as M&A and human capital, a little less than 40% to research and development, and about 20% to capital expenditures, all of which were done successfully in the first year. In terms of shareholder returns, in addition to JPY 30 billion share buyback last fiscal year, we will increase dividend and conduct opportunistic buybacks of more than JPY 30 billion. We will continue to enhance both growth investment and shareholders' returns. In addition, we are also promoting human capital management and others to strengthen our management base. Please refer to Slide 15 for details. Finally, I would like to summarize. Nikon hopes to be a key technology solutions company in a global society where humans and machines co-create seamlessly for 2030.
Toward this vision, we work together with customers to truly anticipating customer needs, cooperating with the partners, and deliver solutions integrating end products, service, and components. We are committed to contribute to the sustainable society through our business and technology, leading to sustainable enhancement of corporate value and meeting the expectations of all stakeholders. We look forward to your continued-