Hello, everyone. I am Kashitani, President of Toyota Tsusho Corporation. First, I would like to express my appreciation for your continued support to our businesses. I thank you from the bottom of my heart. Later, Mr. Iwamoto, our CFO, will explain our financial results. Thanks to you, we were able to achieve good results. However, as for the second half of the year, I think we are in an uncertain situation. Against that background, we are determined not to cause any disruption to the supply chains of our customers and continue supporting our customers so that they can continue their production and sales without any concern. Currently, tough situation is continuing around the world. We want to continue making efforts so that we can protect employment all over the world, reward good business results with dividend increase, and make contribution to the society by creating job through making investments.
Just like the last time, we decided to live stream this presentation to prevent spread of COVID-19 infection. Although we want to talk to you directly in front of you as soon as possible, please allow us to speak online this time again. Thank you very much.
Hello, everyone. I will explain the outline of consolidated results for the second quarter of FY 2021. Please look at the upper left of page three. Regarding the foreign exchange rate, US dollar is JPY 110 , JPY 3 depreciation from the previous year. EUR is JPY 131 , JPY 10 depreciation from the previous year. Gross profit was JPY 363.4 billion , an increase of JPY 101.2 billion . Part of the reason behind this is that the result of the previous year was influenced by the pandemic. But the main reason is the increase of automobile production and sales. Operating profit increased by JPY 77.5 billion -JPY 149.4 billion . As the gross profit increased, SG&A expenses also increased. However, SG&A expenses was around JPY 20 billion , and as a result, gross profit increased by around JPY 77.5 billion .
Profit attributable to owners of the parent almost tripled from the previous year. It increased by JPY 85.9 billion -JPY 127.5 billion . Page four shows the profit analysis. The waterfall chart explains the overall profit and operating profit. Difference between the profits of the last year on the left side and the profits of this year on the right side is JPY 85.9 billion . Regarding the others, special factors are explained at the bottom. As for the finance income and costs, there was gain from exclusion of equity for resources business in South America. As you may know, the Australian listed company, Orocobre, merged with Galaxy. Because of that, our equity diluted, and as a result of accounting processing, around JPY 16 billion profit is reported here.
As for the equity gain and loss, there was impairment last year related to lithium business, but there was no impairment this year. Also, all the equity method affiliates had good results after recovering from the impact of COVID-19. The operating profit increased JPY 77.5 billion from JPY 71.9 billion -JPY 149.4 billion. There was an increase of JPY 2.2 billion due to Forex effect. As for markets prices, there was JPY 11.4 billion increase, mainly for metal. Among metals, there was some additional profit due to increased prices of materials such as rhodium and palladium of our PGM business, as well as steel scrap, aluminum spread, and steel materials. Demand trading volume increased substantially by JPY 43 billion .
This is related to the increase of production number and increase of demand for healthcare business in Africa. As for the automotive sales, there was substantial growth of JPY 11.9 billion for outside Africa and JPY 11.1 billion for Africa. Page five shows profit by division. Profit increased in all divisions except for the others. As for the metals, there was effect from one-off gains and losses, as I explained earlier. Even if we exclude that, profit increased substantially. Machinery, energy, and project needs some additional explanations. There was one-off gains and losses, which includes around JPY 9 billion positive tax effect related to the past loss. Therefore, in real terms, the profit of this division was almost the same as the previous year. Page six shows comparison of quarterly profit by division.
Profit of the second quarter increased to JPY 70.8 billion from JPY 56.7 billion of the first quarter. However, as I just explained, there is effect from one-off gains and losses in the second quarter. For example, in case of metals, if you subtract JPY 16 billion from JPY 13.7 billion, the number becomes somewhat negative. Same as the global parts and logistics, from around September, decrease of production volume seems to be affecting. As for the automotive, the change is +JPY 2.4 billion. Sales is increasing due to the global shortage of products. As for the machinery, energy, and project, as I explained earlier, there was around JPY 9 billion addition as one-off gain. So the business in the second quarter was not very good. However, this result is because there was a big project in the first quarter and previous year.
Therefore, we don't have to be pessimistic about this number. As for the chemicals and electronics, there was decrease of JPY 3.4 billion. However, the profit of JPY 9.3 billion itself is a very good number. We consider that it decreased because the first quarter result was exceptionally good. However, as a whole, we believe that downward trend started from the end of the second quarter. Page seven shows one-off gains and losses. As I have just explained, as a total, there was +JPY 21.5 billion one-time gains and losses up to this second quarter. Page eight shows the consolidated financial position. Total assets increased JPY 202.2 billion. I think the main reason is the increase of current assets, especially inventory assets. Although the interest-bearing debt increased because the net worth also increased, total Net DER is 0.7, which is almost at the same level as the previous year.
Excluding these liabilities, it is 0.63. Therefore, I think we are not in bad shape. Page nine shows consolidated cash flows. Actually, there is a problem with the cash flows. Cash flows from operating activities is +JPY 31.8 billion. It decreased by around JPY 100 billion from the previous year. There were accumulation of profits. However, our calculation shows that we spent about JPY 170 billion for inventory. We want to reduce it in the third and fourth quarter. As for the cash flows from investing activities, overall investment was JPY 111.8 billion. We were able to make diverse investment in every area of mobility, resources and environment, and life and community. However, free cash flow after dividend payment was -JPY 80.5 billion, and we concluded that it was not a good cash flow. Page 11 is the revision of full-year earnings forecast.
In the first half of the year, we were able to make substantial profit of JPY 127.5 billion. Although we announced our initial forecast of JPY 150 billion profit on April 28, we revised this number to JPY 190 billion, which is an increase of JPY 40 billion. Page 12 shows the revised forecast of earnings by division. We made some adjustment based on the profit accumulated up to the end of the first half of the year. Because we are expecting substantial impact from production adjustment in the third quarter, we made this revised forecast, which might seem a little conservative. Page 13 is our dividend forecast. We revised dividends from our initial forecast announced on April 28. For the first half of the year, we increased dividend by JPY 10 - JPY 70. For the second half, we also increased by JPY 10.
Our revised forecast for the full year dividend is JPY 140. Like this, we will endeavor to increase dividend per share. After this page, there are some supplementary materials for your reference. That concludes my presentation. Thank you very much.
Hello once again, I am Kashitani, President of Toyota Tsusho Corporation. Nice to meet you. Our business environment is intensifying in terms of speed and scale due to various factors such as shift of the society and economy to the new normal triggered by the pandemic, and influence of circular economy and carbon neutrality on the industrial structure. However, we consider it as a good opportunity for us to move up to the new stage and expand our businesses.
In 2018, in order to clarify the social issues we should emphasize based on our management strategy, we formulated six important issues or materialities which we should keep in mind in order to realize our corporate philosophy and our global vision, "Be the Right ONE." These materialities are explained on page four. Based on that, in the midterm business plan for the period from FY 2021 -FY 2023, we announced in May, in addition to the organic growth of existing businesses, we explained that we should accelerate our activities in four critical areas where we have expertise to reinforce our efforts to meet our social and environmental responsibilities. Later, I will explain the progress of those activities.
Also, in the carbon neutral declaration we announced in July, we set a target to reduce greenhouse gas emissions by 50% below 2019 level by 2030 and achieve carbon neutrality in real terms by 2050. I will also explain our activities related to that. This page explains our six materialities. Out of them, we regard the four issues indicated at the top as our especially important growth area and accelerating our activities in the midterm business plan we disclosed in May this year. Now let me explain the progress of our midterm business plan for FY 2021 -FY 2023, which we disclosed in May this year. In the midterm business plan, we are aiming to accelerate our initiatives for lean management amid the new normal and our unique four materialities in order to maintain our growth. This is repost of the quantitative information.
As we disclosed in April this year, our profit plan for this year is JPY 150 billion, and the target for FY 2023, which is the final year of the midterm business plan, is JPY 180 billion. Our actual result of the first half of the year was JPY 127.5 billion, and our revised plan for the whole year is JPY 190 billion. We also increased dividend by JPY 20 from our initial forecast of JPY 120 and planning to pay JPY 140. As Mr. Iwamoto, our CFO, explained earlier, this revised plan exceeds the target of our midterm business plan. We will announce our new midterm profit target in the new midterm business plan scheduled to be announced in May next year. There will be no change in our endeavor to further increase profit and manage our businesses with capital efficiency in mind by promoting lean management and our initiatives for the four materialities.
Next subject is lean management. We are trying to implement lean management utilizing expenses wisely and maximizing productivity by digital transformation. Our Berry ratio, which is the ratio of gross profit to SG&A expenses and operating profit margin, have been improving throughout the period of pandemic since two years ago till this term. Also, the Net DERs are all within 1.0. As these indicators show, we are maintaining strong financial constitution. Regarding our digital transformation or DX policy, we worked on the DX 1.5, which improves productivity and creates new and added values, and also tackled DX 2.0 for further innovations. As a result, we increased the number of DX initiatives steadily to more than 400 initiatives we are working on currently. Now, I want to explain one of the examples of our DX 1.5 initiatives, which is our online platform for logistics named Streams.
This is the image of the Streams. It has a function to show estimate of logistic cost within 10 seconds, and you can complete estimate work online. With those functions, it promotes digital transformation of supply chain and visualize CO2 emissions by carbon calculator function, prompting the users to consider measures for carbon neutrality. Currently, there are a lot of registered users who are utilizing this platform. With the motto, "Keep supply chains running," we want to contribute to the digital transformation of the business processes related to supply chains of our business partners and users. Next topic is the progress toward quantitative targets of our midterm business plan. Regarding our business investment for the next three years, we'll invest over JPY 150 billion for the organic business and over JPY 250 billion for the four priority areas. Total investment will be over JPY 400 billion.
Regarding the organic business as a preparation for future production of 10 million units by Toyota Motor Corporation, we expanded capacity in our production support business at Alabama new plant. We will further strengthen our supply chain management, which is resilient to COVID-19 impacts and bolster unique Toyota Tsusho qualities. Regarding priority areas, in the areas of CASE response and circular economy business, we are working on various projects, capturing business opportunities in the areas where we have competitive advantage. Regarding renewable energy, which is our area of expertise, we are steadily expanding businesses. In addition, regarding lithium in our next mobility strategy, we are preparing to expand production and launch refining business of lithium hydroxide in Japan. In Africa, we are accelerating investments in the areas of mobility, retail and healthcare, and infrastructure. We are also providing startup support for businesses which contribute to solve social issues in Africa.
Mid-term business plan started half a year ago, and we are steadily increasing investments in organic business and priority areas. In our organic business, we are bolstering unique Toyota Tsusho qualities and steadily growing businesses. Here, I would like to introduce two examples. In the area of production support, we launched steel blanking operation and tire assembly operation at the new Toyota plant in Alabama State in the U.S. As for sales and service area, we made investment to Toyota Lexus dealership in Costa Rica in order to further improve Toyota Lexus brand. This is the first investment by a Japanese company to automobile dealers in Costa Rica. By this, we will contribute to the development of the mobility society and the economy of Costa Rica. Now let me explain our four priority areas. First one is the next mobility strategy.
In the next mobility strategy, aiming to ensure stable supply of raw materials for lithium batteries, we will increase production of lithium carbonate at Salar de Olaroz in Argentina to 2.5 times of the current volume in 2023. Also, aiming at Japan's first production of lithium hydroxide, our subsidiary, Toyotsu Lithium Corporation in Naraha Town, Fukushima Prefecture, is steadily preparing for production launch. Next, I want to introduce our two initiatives to realize safe and comfortable mobility through the connected service, which connects vehicle by communication technology in a safe, comfortable, and convenient manner. As shown on the left side, our subsidiary, NEXTY Electronics, is collaborating with Acerta Analytics Solutions in Canada. They analyze vehicle data by AI and send malfunction prediction notice and maintenance notice to the customers and contribute to accelerate safe and comfortable next generation mobility society.
Also, as shown on the right side, an Israeli company called Cybellum is providing risk reduction measures by surveillance and detection to address cyber attack vulnerabilities of connected cars. We concluded a distributor agreement with it for Japanese market. By this, we can provide cybersecurity solutions, which will become mandatory for automobile manufacturers from July 2022. By tackling CASE-related issues, we will try to contribute to safe and comfortable mobility society. Next subject is renewable energy strategy. In our renewable energy strategy, we launched and started operations of wind power generation business in Netherlands and South Korea. Also in Taiwan, we installed solar panels on the roofs of our affiliated companies and some Japanese companies. We are expanding our businesses, including hydroelectric power business. We are also moving into offshore wind power business.
In order to achieve our target of power generation capacity in our mid-term business plan, we are steadily promoting our businesses. On this page, I want to explain our largest ever power generation storage and transmission business in northern Hokkaido, with total cost around JPY 230 billion. In addition to generation and transmission of power, we will utilize the world's largest storage battery system, which is equivalent to the capacity of 45,000 units of electric vehicles to calibrate unstable wind power output. It will contribute to stable power supply and maintenance and operation of power transmission network. Next subject is our Africa strategy. I want to briefly mention about the influence of COVID-19 in Africa. At the beginning of July, which was the peak of infection this year, the number of new cases of infection per day exceeded 210,000.
Recently, it has reduced to around 20,000. Right side of this page shows the recovery of our car sales in Africa. Result of the first half of this year has exceeded 50% of the number of FY 2020, and currently, we can see the trend of recovery and growth overcoming the influence of the pandemic. Let me explain our activities in mobility area in Africa against that background. We launched knockdown business in Ghana, which is our sixth production base in Africa. Its opening ceremony was held in the presence of the country's president and the Minister of Trade and Industry. At this site, Hilux is being assembled, and in the next year, Suzuki Swift will be added in the lineup, and full-scale assembly will start. From here, I want to explain examples related to the retail and healthcare area.
As for the retail area, we are aiming to increase the number of supermarkets to 2.5 times of the current number in three years. This year, we started operation of Carrefour store in Senegal. Regarding the healthcare area, we aim to contribute to the improvement of the level of medicine in developing countries. For that, we will provide five vehicles, which are the only vehicles certified by WHO as refrigerated vaccine transportation vehicles to five African countries through Gavi, which is a global alliance for vaccine and immunization. With the spirit of It's Africa for Africa, we will endeavor to contribute to the improvement of African economy, people's livelihood, and global health. We are also aiming to solve African social issues at the grassroots level by offering investment and loans for emerging technologies and services.
Regarding mobility, we established a company named Mobility 54, which provides investments and loans for startups. In 2019, we started the first fund to invest in the companies working on emerging technologies and services suitable for Africa. We plan to invest approximately EUR 30 million by the end of this year. From January next year, we will launch our second fund worth EUR 40 million. By this, we will connect our existing businesses and companies received investment from Mobility 54 and also make connection between those companies to create synergy by new mobility value chain. Also, we established a new company named Health54 to support medical startups. It will support new businesses in the areas of digital utilization, telemedicine tools, medical logistics, and medical insurance. Now I will introduce two initiatives from the circular economy business strategy.
In Hino Town, Shiga Prefecture, we are preparing to launch Toyotsu PET Recycling Systems next spring. This company will undertake bottle-to-bottle business, which recycle soft drink PET bottles. With high-quality recycled business, we will contribute to recycling and reuse of plastic materials in Japan, which have been shipped abroad until now. Japan's biggest recycled plastic manufacturer, Planic, is scheduled to start operation in the summer next year. This is a company which shreds, sorts, and compounds the used plastic, which comes from automobile, consumer electronics, and household products, and recycle it into resin used for automobile parts and other purposes. Utilizing the first technology in Japan, we will produce recycled plastic, which has high quality and strong price competitiveness, and promote material recycling and reduction of CO2 emission. From here, I will explain our initiatives aiming at carbon neutrality.
In order to contribute to transition to decarbonized society, we will provide all possible solutions and support our customers and business partners to lead them into even better future. To be specific, we set up a mission which goes a better global environment for future generations and have a vision to become a leading circular economy provider. With this, we will take the leadership to materialize a sustainable society. To that end, we announced carbon neutrality goals in July this year, and we are focusing on reducing greenhouse gas emissions of group companies and suppliers and expanding scope of businesses that help reduce greenhouse gas by our five working groups. I want to explain our carbon neutral declaration we issued in July this year.
We have a target to reduce greenhouse gas emissions caused by our group and suppliers by 50% below 2019 levels by 2030 and achieve carbon neutrality in real terms by 2050. This is the strategy map for us to realize carbon neutrality. Regarding the areas Toyota Tsusho has unique capabilities, in order to grow our business, which contributes to reduction of greenhouse gas, we established the task force for promoting carbon neutrality in April this year. It has five working groups for the main areas. They are renewable energy management working group, battery working group, hydrogen alternative fuels working group, resource recycling Three Rs working group, and economy of life working group. Each group will work on various activities and try to create new businesses.
Out of the five working groups, the renewable energy management working group will utilize our expertise in renewable energy development and contribute to achieve carbon neutrality. The battery working group will work on various activities from resource development to the activities related to rebuild, reuse, and recycle. The hydrogen alternative fuel working group will accelerate activities related to hydrogen and alternative fuels, which is one of the key areas important to achieve carbon neutrality. The resource recycling Three Rs working group will work on initiatives for resource recycling, keeping in mind the key concept, reduce and eliminate CO2 and create from CO2. Lastly, the economy of life working group will tackle reduction, absorption, and utilization of CO2 in the areas related to medicine and clothing, food and housing. To materialize that, each working group will execute investments that contribute to transition to carbon-free society.
The total investment will exceed JPY 1.6 trillion by 2030. Also, we will ensure that Net DER will be maintained below 1.0 to maintain robust financial condition. Toyota Tsusho will keep taking on various challenges to ensure continuous growth and materialize company philosophy, making it our mission to pass on a better global environment to the children of the future. That concludes my presentation. Thank you very much.