Thank you indeed for your precious time for our financial results for the first quarter of the year ending March 31, 2020. This is Oka, the Senior Executive Vice President and CFO, Nikon Corporation. First, do allow me to explain the overview. In the first quarter, revenue and operating profit dropped JPY 24 billion and JPY 9.7 billion respectively, year-on-year, due to the reduced sales volume in entry and mid DSLR cameras and FPD lithography systems. Operating profit resulted in JPY 9.3 billion, down 51% year-on-year. Yet, it is still proceeding almost accordingly to our full-year forecast. As has been already reported, we had a buyback operation of 6,667,200 shares for the value of JPY 10 billion, which accounted for about 1.7% of the outstanding shares from May 10 to June 20, 2019.
As for the first half and full year forecast, thanks to the actual performance in Q1 almost on the plan, we have not changed our forecast from the previous time for revenue, operating profit and profit attributable to owners of the parent. ROE is expected to be 7%. Annual dividend is JPY 60 and interim dividend JPY 30, unchanged from the previous forecast based on our new policy for shareholders' return. With the share buyback, the average number of the stocks is expected to decline, we plan to reduce the expected payout ratio by 0.5 points to 56.1%. I will explain the first quarter numbers. Allow me first to explain the consolidated revenue and profit. The actual numbers for the first quarter are shown in the column in the yellow box. Revenue was JPY 142.9 billion, down JPY 24 billion.
Operating profit was JPY 9.3 billion, down JPY 9.7 billion year-on-year respectively. Profit attributable to owners of the parent was JPY 8.2 billion, down JPY 8.1 billion. Free cash flow was negative JPY 700 million, down JPY 28.3 billion year-on-year. Though we had a patent litigation settlement with ASML, besides the profit decline, we had a reduction in the advances received, as well as the changes in the payment terms for the domestic partner companies and others. As for exchange rates, we had a JPY 1 depreciation to the USD and a JPY 6 appreciation to EUR in the first quarter. FX impact on revenue was negative JPY 1.9 billion, and its impact on operating profit was negative JPY 900 million year-on-year. This shows the numbers by segment. I will give you details of each segment in the following pages.
Corporate profit and loss not attributable to any reportable segments improved by JPY 3.6 billion, but it does include the gain from sales of the unused land of JPY 3.8 billion. First, Imaging Products Business. Revenue was JPY 67.3 billion, down JPY 11.8 billion. Operating profit was JPY 3.5 billion, down JPY 8.9 billion. Due to the declining markets, the units sold declined in all the product categories. Digital camera interchangeable lens type went down 21% to 450,000 units year-over-year. Interchangeable lenses were down 17% to 740,000 units, and compact DSC was down 37% to 270,000 units. In the segment of digital camera interchangeable lens type, our mirrorless camera launched last year made a contribution, and unit sales of the high-end full-frame camera increased mainly in Europe and the U.S. Entry and mid DSLR cameras declined, particularly in China and Asia.
Interchangeable-lens mirrorless camera lenses increased driven by the two new products launched in April. However, the growth did not cover the loss in the DSLR lenses in units sold. In the previous fiscal year, D850 and high-end DSLR camera made a great contribution to the revenue. However, this year, the revenue declined, and we had to bear with the high initial development cost for new mirrorless camera lenses, pushing down both the revenue and profit greatly year on year. The mirrorless cameras and the dedicated lenses we launched in September last year are contributing firmly to the revenue. The market started shrinking starting from the latter half of the previous year, and this situation has been accelerating.
Its impact on our sales volume of DSLR body lenses is continuing, and I am afraid that this tough situation is going to continue for some time to come in second quarter and onwards. Next, Precision Equipment Business. Revenue was JPY 50.9 billion, down JPY 8.1 billion year-on-year. Operating profit was JPY 10.1 billion, down JPY 4 billion. FPD lithography systems, Gen 5 and Gen 6 went down by 1-2 units. Gen 8 down 9 units to 3 units. Gen 10.5 was 4, same as last year. Overall, the units sold went down 10, becoming 9 units. For FPD lithography business, revenue and profit decreased due to a substantial reduction in Gen 8 sales as Chinese manufacturers' investment for TV panels have shifted from Gen 8 to Gen 10.5. Both revenue and profit declined as we had forecasted.
On the other hand, semiconductor lithography systems had two more units in ArF immersion systems, resulting in six units in the new sales, up three units. Semiconductor equipment business grew both in revenue and profit year-over-year, offsetting partially some of the negative profit of FPD systems. Healthcare Business, revenue was JPY 12.9 billion, down JPY 400 million. Operating profit was negative JPY 1.9 billion, showing an improvement of JPY 200 million. Sales of retinal diagnostic imaging systems by U.K. Optos increased, particularly in the United States, and we achieved record high sales. In the meantime, overall revenue resulted in a slight decrease as sales of biological microscope declined in other regions except for the Americas. All in all, deficit was suppressed by improving the biological microscope cost and by focusing investment themes of the long-term growth areas.
As for the themes we selected, while managing the risk thoroughly, we are increasing resources appropriately. Here, now, I'd like to be a bit more specific for your further information. We established our centers in the U.S. for pharmaceuticals and biotechnological ventures in order to support new drug development research activities. We are also expanding our business and capital partnership with affiliates in the form of convertible bonds in order to acquire wider business opportunities in the cell production area. Lastly, I'd like to explain the Industrial Metrology and others. Revenue was JPY 11.7 billion, down JPY 3.7 billion. Operating profit was JPY 400 million, down JPY 700 million. Revenue was adversely affected by the delayed investment by our customers in Industrial Metrology and other businesses. We were able to compensate some of the negative impact and profit by controlling our expenses.
Others, namely, custom products, glasses, and encoders, had declines in revenue and profit affected by the postponed CapEx investments by our customers, just like Industrial Metrology. Next, I will explain our forecast for the year ending March 31, 2020. First, our forecast for the corporation. Please look at those numbers in the yellow box. In light of the actual numbers for the first quarter being within our plan, we have not changed our forecast from the last time. Revenue being JPY 670 billion, down JPY 38.6 billion or 5% year-on-year. Operating profit was JPY 52 billion, down JPY 30.6 billion or down 37%. Profit attributable to owners of the parent was JPY 42 billion, down JPY 24.5 billion or down 37% year-on-year.
Having covered these points, of course, there are U.S.-China trade conflict going on and also an export control efforts against South Korea and concerns for the Middle East affairs and Brexit and consumption tax hike in Japan, slowing down of the global economies, and others. Those uncertainties and geopolitical risk factors have been with us for sure. Furthermore, the environment surrounding Imaging Products Business has become much tougher since July. We are fully aware that we need to be more conscious toward the future outlook. At any rate, we will try to fully understand possible concerns as soon as possible so we can be truly proactive vis-à-vis those issues. Our FX assumptions in the second quarter and onwards have not changed.
105 to the USD and JPY 125 to a EUR. The full-year currencies and assumption based on the actual currencies in the first quarter are JPY 106 to the USD and JPY 125 to a EUR. Year-on-year basis, the JPY is JPY 5 stronger to the USD and JPY 3 stronger to a EUR from the previous year. FX impact on revenue is negative JPY 15.4 billion, and its impact on operating profit is about JPY 3.3 billion year-on-year basis. FX sensitivity with an exchange rate fluctuating JPY 1 is shown on page 31 in the reference data. For revenue side, the financial impact is about JPY 1.9 billion in the USD and JPY 500 million in Europe. Operating profit is JPY 300 million in USD and JPY 200 million in EUR. The forecast by segment. No changes from the previous time.
Assumptions for the forecast for each segment will be explained in the following pages. First, Imaging Products Business. Revenue, no change, JPY 260 billion, down JPY 36.1 billion year-over-year. Unit forecast by digital camera and categories. Digital camera interchangeable lens type, down 22%. Interchangeable lenses, down 18%. Compact DSC, down 37%. Operating profit is forecasted to be JPY 12 billion, down JPY 10 billion. While making further efforts to reduce in expense and improve efficiency of R&D activities, so we plan to compensate for the loss in profit caused by the decline in revenue. I am afraid we expect to have a profit deterioration two years in a row due to the increased development cost to further expand product portfolio, such as lenses for mirrorless cameras.
Although efforts will be continuously made to focus on high value-added products, expand the sales of mirrorless cameras and Z mount lenses, it is most likely that the poor market conditions appear to be continuing since July, and we simply cannot avoid a tougher competition, particularly in our core full-frame mirrorless camera segment. We would revisit our overall business strategy to secure our profitability even when we are faced with shrinking market conditions. We should be more proactive, and we shall implement our new ideas after the next earnings call. Next, Precision Equipment Business. Revenue forecast has not changed. JPY 270 billion, down JPY 4.5 billion year-over-year. FPD lithography systems units forecast has not changed. 37 units, down 33. Gen5 and Gen6 equipments, five units, down 11. Gen7 and Gen8, 10 units, down 27. Gen10.5 expected to be 22 units, up five units.
Forecast for the units including used equipments year-on-year basis, up 4 to 45 units. Of that, new equipments are expected to grow 10 to 31 units, no change. ArF for immersion, up 5 to 12 units. ArF dry is expected to increase 2 to 13 units. Operating profit, unchanged, JPY 56 billion, down JPY 25.7 billion year-on-year basis. FPD lithography systems are expected to decline in units greatly, but we intend to strengthen our resources into materials processing business, which is one of the core themes for the new midterm management plan. In the previous fiscal year, we had one-time profit from the litigation settlement as much as about JPY 15 billion. Excluding that, we forecast our profit to be down by about JPY 10.7 billion year-on-year. Next is the Healthcare Business. Revenue forecast is JPY 65 billion, down JPY 400 million year-on-year, no change.
Both biological microscopes and the retinal diagnostic imaging systems are performing steadily, yet the flat revenue is expected due to the negative FX impact. More focused investment is conducted in regenerative medicine and ophthalmological diagnosis fields. We aim to have the deficit to be JPY 1 billion, and we plan to be profitable in the next fiscal year. Industrial Metrology Business and others. Revenue forecast unchanged, JPY 75 billion, up JPY 2.5 billion year-on-year basis. In the Industrial Metrology Business, we intend to increase our market share in X-ray and inspection systems and non-contact 3D metrology systems, which are highly appreciated among our customers. Operating profit forecast, JPY 6 billion, down JPY 900 million. We had a JPY 600 million for the structural reform, so if we are to exclude that, it is going to be down by JPY 1.5 billion.
We received an order for mass production of LiDAR sensors from Velodyne in the U.S., where we invested $25 million. We do expect this segment is going to make its contributions to our profit starting from two fiscals or later years. As I have mentioned, lastly, the business environment surrounding Nikon has been tough, and we are now fully aware of this fact, and there is an increased concern about our Imaging Products Business. Yes, we are fully aware of that. We decided not to change our full year forecast because our first quarter outcome was almost within the plan. That said, though, we are fully conscious that second quarter and onward business outlook is going to have more uncertainties. We management has to tighten our belt with a very strong sense of crisis.
In order to cope with such a tough business environment, we will have much deeper sessions to discuss how to address these issues. Specifically, we will address to perform overall cost reduction as fully as possible in order to secure our profitability. We will identify additional measures and to drastically address the Imaging Products Business as well as to strengthen our new revenue streams such as materials processing. I plan to share our specific journey to go for those improved profitability in the next earnings brief for the first half. With this, I conclude my explanation. Thank you for your kind attention.