Good afternoon, everyone. My name is Matsumoto. I took on the role of CFO this past April. Thank you for joining us today. I'll begin by reviewing our results for the fiscal year ended March 31st, 2025, and then share our outlook for the current fiscal year. For FY 2025, Nikon recorded revenue of JPY 715.2 billion, operating profit of JPY 2.4 billion, and profit attributable to owners of parent of JPY 6.1 billion. We faced a decline in sales for semiconductor-related businesses within precision equipment and components. The increase in sales from imaging products and healthcare, and the weaker yen were not enough to offset this, resulting in a slight drop in overall revenue. Adding to this, we recorded JPY 27.2 billion in one-time costs, which significantly reduced our profit. Details are available on slide 28.
Compared to our previous forecast, imaging products, precision equipment, and digital manufacturing all fell short of expectations, contributing to a notable shortfall in profits. Because of this, we've revised our annual dividend downward by JPY 5 to JPY 50 per share, keeping it at the same level as the end of last year. The JPY 30 billion share buyback was carried out as planned using funds made available through balance sheet efficiencies. The repurchased shares were canceled at the end of the fiscal year. This chart shows the changes in operating profit by segment compared to our February 6 forecast. As you can see, imaging products, precision equipment, and digital manufacturing saw major downside, and the one-time costs played a significant role. Slide five in the yellow box highlights key financial indicators for the previous fiscal year. Operating cash flow was JPY 48.2 billion, marking the second consecutive year of growth.
However, free cash flow came to JPY 21.7 billion due to outlays tied to our acquisition rate and relocation of our head office. On slide six, we present segment results compared to both the previous year and our previous forecast. Let me walk through each one. Starting with imaging products business. The global market for digital camera interchangeable lens type continued to expand, especially in China. With strong demand for our new mirrorless cameras, both bodies and lenses, and a tailwind from a weaker yen, revenue increased by JPY 15.6 billion to JPY 295.3 billion. However, sluggish conditions in the cinema industry resulted in operating losses at RED, a company we acquired, and our recognition of fixed asset impairment losses at MRMC also led to a decline in operating profit by JPY 5.2 billion to JPY 41.3 billion.
Compared to our forecast, profits fell by JPY 5.7 billion due to a shift in product mix leading to lower lens sales versus plan, in addition to the impact of one-time costs. Next, on slide eight, precision equipment business. Sales of FPD lithography system for high-resolution panels increased significantly. However, that was offset by a decline in new semiconductor lithography system sales. This brought overall revenue down by JPY 17.4 billion to JPY 201.9 billion. We also revised our future plans for semiconductor lithography business due to changes in customer investment plans and delays in market recovery. As a result, we recorded JPY 14.1 billion in fixed asset impairment losses, inventory write-downs, and restructuring costs. Operating profit was limited to JPY 1.5 billion. Compared to forecast, profit was down by JPY 7.5 billion due to one-time costs despite higher service income. Now, on slide nine, healthcare business.
Sales in life science solutions declined due to sluggish markets in Europe, the U.S., and China, but strong growth in eye care solutions and contract cell development and manufacturing, plus the weaker yen, pushed the revenue and profit higher year on year. However, we still came in JPY 1.3 billion below our forecast due to missed life science solutions sales and the disposal of old inventory. Next, components business on slide 10. We saw growth in X-ray and CT system for aerospace application, but declines in EUV-related components, optical parts and components, and encoder dragged the segment down. Revenue dropped JPY 11.8 billion, and operating profit fell by JPY 8 billion. Compared to forecast, profit exceeded expectations by JPY 2.1 billion thanks to cost controls and lower restructuring costs in industrial solution business. Now, our last segment, digital manufacturing business.
The overall metal 3D printer market is slightly contracted, primarily for small to mid-size systems due to market conditions. However, in our focus area of aerospace and defense, demand for Nikon's SLM Solutions large format system, NXG Series, expanded. NXG sales, which continued over half of SLM's revenue, grew by 33% year on year, with approximately 75% directed to space and defense sector. This contributed to an overall business revenue increase of JPY 2.3 billion to JPY 23.3 billion. On the profit side, however, our operating losses widened by JPY 1.2 billion year on year to JPY 15.2 billion due to increased costs from lower production volume of small to mid-size systems, as well as upfront investments such as in our U.S. facility and R&D.
This also resulted in JPY 5.7 billion profit shortfall compared to our previous forecast, and the reason for which I'll explain later together with the outlook for the current fiscal year on slide 22. Let's turn to the outlook now. For FY 2026, we are assuming JPY 145 to the dollar and JPY 155 to the euro. We expect a revenue of JPY 710 billion, operating profit of JPY 36 billion, and profit attributable to owners' apparent of JPY 30 billion. Components and digital manufacturing should see growth, while stronger yen and weaker sales in semiconductor lithography business in precision equipment will likely keep total revenue flat. We anticipate a significant JPY 33.6 billion increase in operating profit, driven by improved profitability in some businesses, the absence of last year's JPY 27.2 billion in one-time costs, gains from the sales of idle assets, reduced R&D spending, and the effects from restructuring.
The dividend will be JPY 50 per share, same as last year. Details are on the next slide. Due to the uncertainty surrounding U.S. tariffs, they are not included in the forecast. We anticipate approximately JPY 10 billion negative impact on operating profit. This is a current estimate and will be incorporated into our four-year forecast at the appropriate time, pending final negotiation, related economic impacts, and effectiveness of our countermeasures. Now, let me talk about our shareholder return policy under the midterm management plan. Given recent performance, we have revised our dividend projections. For FY 2025, we lowered the dividend from JPY 55 to JPY 50 per share. For FY 2026, we have also adjusted the original target from JPY 60 to JPY 50 per share. We also completed a JPY 30 billion share buyback last fiscal year, which brought our total shareholder return ratio to 765.8%.
For the current fiscal year, we project a return ratio of 54.8% and over the full four-year plan. The cumulative ratio should be around 111.3%. Roughly 15% of total distributable resources under the plan will be allocated to shareholder returns. Please refer to slide 15 for a summary of our key FY 2026 indicators alongside year-on-year comparisons. Slide 16 shows a four-year projection by segment, also compared to last year. The others' operating loss, down two lines, improved JPY 13.1 billion year on year. This reflects the absence of last year's one-time costs related to our head office relocation and footprint reorganization, along with expected gains from idle asset sales and lower R&D spending, as noted below. Now, let's go into the each segment forecast, starting with imaging products. We expect the interchangeable lens camera market to remain steady at around JPY 6.7 billion.
We anticipate a continued favorable market trend led by mid-to-high-end cameras for professionals and hobbyists. We are aiming to increase our unit sales, especially within the volume zones such as Z5 II launched April and Z6 III released last November, which incorporate advanced technology from Z9. We are targeting sales of 950,000 camera bodies, up 100,000 from last year, and 1.4 million lenses, up 90,000. Due to a slight drop in ASP, revenue is expected to hold steady at JPY 295 billion, with operating profit down by JPY 1.3 billion to JPY 40 billion, due in part by stronger yen. Moving on to precision equipment business. We project revenue to decline by JPY 16.9 billion to JPY 185 billion. FPD lithography system sales are expected to dip slightly from 38 to 35 units, though demand for high-resolution panels remains solid.
In semiconductor lithography, orders for our new i-line stepper 2205iL should increase from 28 to 34 units, but the sales of new ArF lithography systems and service income will decline due to slow market recovery. Operating profit, however, is forecast to increase by JPY 10.5 billion to JPY 12 billion overall, helped by an improvement in product mix in FPD and improved profitability in semiconductor lithography due to the disappearance of last year's one-time costs and optimization of service bases. Regarding the semiconductor lithography business, we will assess future customer investment trend, proceed with streamlining our production support structure and lower breakeven point, thereby establishing a structure capable of generating stable profits from next fiscal year onwards.
At the same time, we will promote the development of next-generation equipment such as digital lithography system for back-end processes and new ArF immersion lithography system, aiming for a significant recovery in earnings around 2030. For healthcare business on slide 19, we aim to boost profitability in life science solutions through increased sales of high-value-added products. In eye care solutions, we are working to develop new sales channels of optometrist channel in Europe and expand further into Asia and other regions. In contract cell development and manufacturing, we plan to make upfront investment to support growth, but existing projects remain strong and will provide stable income. Total revenue is expected to fall JPY 1.4 billion to JPY 115 billion due to the yen's appreciation, but operating profit is forecast to rise by JPY 1.8 billion to JPY 8.5 billion thanks to cost optimization and higher life science solutions margins. Components business on slide 20.
We plan to expand our customer base for optical parts and optical components and expect stronger sales in the second half as market conditions recover. In metrology equipment, our video measuring system for electronics components and semiconductors, and X-ray and CT system for aerospace are expected to perform well. Furthermore, we anticipate increased demand for FPD photomag substrates for high-resolution panels. Altogether, we project revenue to grow by JPY 4.9 billion to JPY 79 billion and profit by JPY 2.9 billion to JPY 10 billion due to revenue gains, improvement in profitability resulting from restructuring, and the absence of one-time costs. Digital manufacturing business. We expect the overall metal 3D printer market to stay flat for small to mid-size systems, but anticipate continued growth in the large format segment. Nikon SLM Solutions set a record high in orders last year with 19% growth, with 52% growth in large format equipment.
The backlog at the end of March was JPY 13.5 billion, up JPY 3.5 billion year on year. For FY 2026, we aim to expand further in aerospace and defense, raising revenue by JPY 9.7 billion to JPY 33 billion. We'll also improve profitability by optimizing business management through production optimization, tighter cost control, and R&D prioritization. We remain on track to make SLM profitable this year. For the whole segment, we are now targeting profitability by FY 2028, a one-year delay from our initial plan. Lastly, concerning the operating profit of the digital manufacturing business, I will detail the variance between the previous forecast and the prior year's actual results, as well as the year-on-year changes in our current fiscal year outlook. Last year's shortfall came mainly from delays in customer deliveries of SLM's large format system due to customer circumstances. Small to mid-size system also saw delays and higher production costs.
Nikon's DED system underperformed as well. The weak yen and higher expenses further impacted results. This year, profit recovery will mostly come from higher sales of SLM's large format system and a better product mix. For small to mid-size systems, we'll cut costs by optimizing production, in addition to an increase in unit sales. We'll also continue to rein in expenses across other parts of the business, aiming to reduce the segment's operating losses to JPY 8.5 billion. To sum up, last fiscal year saw a significant profit decline, which is impacted by lower semiconductor revenue in precision equipment and components and the recognition of JPY 27.2 billion in one-time costs. For this current fiscal year outlook, overall revenue is expected to be the same level as last fiscal year. However, we are anticipating improved operating profit in all segments, excluding imaging products, which is sensitive to FX.
We anticipate JPY 36 billion in operating profit, a significant JPY 33.6 billion increase, largely due to the absence of the one-time costs booked in the last year. Although this is the final year of our midterm plan, we foresee a substantial shortfall compared to our operating profit target of JPY 70 billion. We strongly recognize that improved profitability remains a challenge. We are committed to a company-wide effort to recover our earnings. Our Chairman and CEO, Umatate, will elaborate on the progress of the midterm plan, including this point. Thank you.
Good afternoon. My name is Umatate. I'm the Chairman and CEO of Nikon. Thank you again for joining us today. This year marks the final year of our current midterm management plan. Looking back at the past three years, we've made steady progress in strengthening our business strategies and improving our management foundation.
By business segment, while imaging outperformed due to the underperformance in industrial areas like semiconductor-related, coupled with delays in growth drivers, the numerical targets outlined at the bottom of this slide are expected to fall short of our plan, except the revenue. Profitability improvement remains a work in progress, and we recognize that we have not yet fully met the expectation of our shareholders. Taking these points into account, we have positioned FY 2025 as the year to build a foundation for where we want to be in 2030. We will focus on both recovering short-term performance and making investment for long-term growth. Please look at slide three. This slide provides a numerical overview of our progress, as shown on the left side. The first two years of the plan went very well.
By FY 2023, we had already achieved the original FY 2025 revenue target of JPY 700 billion, two years ahead of schedule. Our operating profit was also mostly on track. However, over the next two years, while imaging continued to perform well, other segments suffered from upfront investment burdens and the semiconductor market downturn. As a result, operating profit for FY 2025 is now forecast at JPY 36 billion, well below our JPY 70 billion goal. In response, we've implemented various restructuring and organizational integrations. We've also prioritized how we allocate gross investments, limiting projects that take too long to scale, and focusing on three key areas: professional video cameras, next-generation lithography, and metal additive processing. Now, let's move to slide five. This graph plots the five business segments with revenue on the X-axis and operating margin on the Y-axis. The size of each bubble represents total operating profit.
The dotted circles show our FY 2025 targets set during planning. The lighter circles reflect our latest forecast, and the darker circles show our FY 2030 goals. For the two main businesses on the right, our strategy is to grow precision equipment through next-gen lithography and customer diversification. For imaging products, we aim to stable profits by launching competitive professional video cameras and attracting new users, especially the younger generation. On the left-hand side, we have our three strategic businesses. In healthcare and components, which have relatively high margins, we aim to steadily grow earnings. For digital manufacturing, the goal is to beat industry growth and reduce losses quickly through metal additive processing. We want to create more value across all five businesses and reach JPY 1 trillion in revenue and a 10% operating margin by FY 2030.
Next, I will walk you through what each business will focus on in the following two pages. For imaging products, we are prioritizing new user acquisition, especially among younger generations. We are also leveraging synergies with RED, a U.S. subsidiary, to expand in the professional video camera market. In healthcare, we are working to strengthen our system microscopes and applications while also scaling up our rapidly growing contract cell development and manufacturing business. Slide seven. In precision equipment, our FPD segment remains solid. For semiconductor lithography, we are streamlining support infrastructure for key clients while also developing digital lithography for semiconductor back-end processes and a new platform, ArF immersion lithography system. In components, we are increasing synergy from the integration of the former industrial metrology business and aiming for growth, particularly overseas.
In digital manufacturing, we will focus on expanding our presence in defense and aerospace by leveraging SLM's large format metal 3D printers. Slide eight summarizes our efforts to strengthen Nikon's management foundation. On the left, you will see our continued focus on human capital management and sustainability. On the right, we are investing in digital transformation, manufacturing innovation, and organizing of executive management for group companies. Slide nine provides a summary of everything we've discussed today. Finally, this year marks Nikon's 108th anniversary and the 100th anniversary of our first microscope. Our microscope has helped visualize the invisible, supporting research in life sciences, medicine, and advanced industry like semiconductors. Last year, in response to Japan's demographic challenges, we've developed a microscope system designed to improve the success rate of artificial insemination in fertility treatments. The system is shown here on this slide.
In this way, Nikon is committed to contributing to society while also enhancing long-term corporate value for all stakeholders, including our shareholders. Thank you for your continued support, and thank you again for your attention.