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This is Fukumoto, General Manager of Finance and Accounting of IHI Group. I will explain IHI Group's financial results for the first quarter of fiscal year 2022 based on the PowerPoint presentation materials disclosed at 3:00 p.m. today.
Page 2 shows the content of today's presentation. I will explain details based on this content. Please turn to Page 4. This slide shows an overview of the results. In the first quarter of fiscal year 2022, there were signs of economic recovery. However, the outlook of the economy has become increasingly challenging due to various factors such as global shortage of materials, inflation, mandatory tightening in each country caused by increased geopolitical risks mainly from protracted Russia's aggression against Ukraine.
Under its business environment, IHI Group's earnings power of each business has increased steadily with all the reportable segments turning positive in operating profit. Although profits decreased year-on-year due to the impact of gains on sales of assets recorded in the same period of the previous fiscal year.
In civil aero engines on the back of dramatic recovery in passengers demand, although sales of spare parts for [ C4 34 ] to which we were forecasting strong recovery or slower than expected due to sluggish operations of regional jets caused by labor shortage in the airline industry. The overall recovery trend remained unchanged and also helped by the year-on-year depreciation of the yen.
The segment started the year by positive operating profit. In 3 non-aero businesses, overall performance continued to be solid. Although some businesses, including vehicular turbochargers were still affected by the shortage of semiconductors and lockdowns in China, among other factors.
I will explain details in the following pages. Please turn to Page 5. This slide shows the consolidated results, including orders received and the income statement. Orders received were pretty much flat year-on-year. Revenue was up by JPY 19 billion, an increase of 7.8%. As shown at the bottom left of the page, the average exchange rate for revenue was JPY 125.29 to the U.S. dollar. There was JPY 14.85 depreciation from the same quarter of the previous fiscal year.
Operating profit was down year-on-year due to the impact of more than JPY 20 billion asset sales recorded in the same quarter of the previous fiscal year, but the group generated operating profit of JPY 7.5 billion with all the reportable segments becoming profitable. Profit attributable to owners of parent was JPY 8.4 billion.
Please turn to Page 6. This page is for orders received and order backlog by segment. Total orders received were almost at the same level with the same period of the previous fiscal year. In Resources, Energy and Environment, orders decreased in Carbon Solutions owing to cancellations of orders booked in the previous year.
In Social Infrastructure and Offshore Facilities, orders decreased in bridges and water gates due to large-scale orders recorded in the previous year. On the other hand, in Industrial Systems and General-Purpose Machinery, orders increased in rotating machineries and transport machineries among others. In Aero Engine, Space and Defense, orders increased in civil aero engine, thanks to recovery in demand as well as in engines for the Ministry of Defense.
As shown on the right, order backlog at the end of June was JPY [ 1,1270.7 billion ] , which was almost at the same level as the end of the previous fiscal year. Please turn to Page 7. This is for revenue and operating profit by segment. Revenue increased in all the reportable segments and operating profit was positive in all the reportable segments.
In Resources, Energy and Environment, operating profit turned positive due to the progress in construction in Nuclear Energy. Aero Engine, Space and Defense secured profit due to increased sales of spare parts for civil aero engines, improved productivity and also due to yen depreciation.
In adjustment, there was substantial negative impact as it includes the impact from asset sales recorded in the previous fiscal year. I will explain the situation regarding several aero engines and vehicular turbochargers using Pages 9 and 10, respectively.
Please turn to Page 8. This is a breakdown by segment of the JPY 12.7 billion year-on-year decrease in operating profit. Change in revenue had JPY 4.8 billion positive impact on operating profit. Although unit sales decreased in vehicular turbochargers because of the impact from lockdowns in China, due to the progress in construction in Nuclear Energy and increase in sales of spare parts in several aero engines, the overall impact on operating profit was positive.
Change in construction profitability pushed up operating profit by JPY 0.5 billion. Although there was a negative impact on operating profit in transport machineries and [ porting ] in Industrial Systems and General Purpose Machinery due to temporary decrease in favorable margin projects, the group made steady progress in reaping benefits from measures aimed at improving productivity, such as cost reduction and total cost compression in civil aero engines.
The positive impact from the change in foreign exchange rate was JPY 4.6 billion centered on several aero engines. Changing SG&A pushed down operating profit by JPY 2.5 billion, which was attributable to increasing costs along with the reopening of economic activities. Change in other income and expenses is attributable to nonrecurrence of the impact from asset sales.
Please turn to Page 9. As always, the graph at top half of the page shows the trend of quarterly revenue of civil aero engines in bars and spare parts transaction volume in a solid line. Overall, the trend of recovery in transaction volume of spare parts remains unchanged, in line with the recovery of aero transportation demand.
The graph at the bottom shows spare parts transaction volume for regional jets. Along with the recovery of passengers demand in North American domestic flights, spare parts for regional jets have been leading the business recovery of civil aero engines from an early stage. As for the fiscal year 2022, we are hoping for a robust recovery, but by continuously strong passenger demand in North America.
However, due to shortage of labor in the airline industry, operations of regional jets, in particular, have clearly become sluggish recently. As a result, recovery in sales of spare parts in the first quarter were slower than the initial expectations.
Please turn to Page 10. The graph above shows the changes in the number of delivery and revenue by region by quarter, which is the graph we've been showing from before. We are still in a situation where the sales volume has been yet to recover at a good pace when the auto OEMs are adjusting their production volume following the chip shortage and supply chain disruption.
But as you see in the graph below, although we were affected by the lockdown situation in China until recently, the number of deliveries has started to recover at a rapid speed after hitting its bottom in April this year. Although there is still an uncertainty over when the auto production is going to be normalized, we are expecting to see a recovery to a high production level during the second half of fiscal year 2022.
Please turn to Page 11. Finance income and costs. Thanks to the weaker yen, as you will see below the change of FX rate, foreign exchange gains of JPY 10.1 billion was recognized. Profit generated by Japan Marine United, which is included in share of profit of investments accounted for using equity method was a small positive, thanks to the weaker yen and the effort on the structural reform, although negatively affected by the rising steel and other materials and equipment prices.
Please turn to Page 12. Financial position. As you see in the middle of the page, interest-bearing liabilities was JPY 488.8 billion, decreased by JPY 16.6 billion from the end of the previous fiscal year. Total equity was JPY 418.6 billion, increased by JPY 11.6 billion. As a result, debt-to-equity ratio was 1.17x ratio of equity attributable to owners of parent was 21.1%.
Please turn to Page 13. Consolidated cash flows. By focusing on strengthening our cash generation ability under our business management, we have been able to control the increase in our working capital to a certain extent when our net sales was increasing. Cash flows from operating activities was negative JPY 5.3 billion as a result of increase in corporate income and other taxes corresponding to the previous year's earnings.
Cash flows from investing activities was negative JPY 10.6 billion since we have been making some capital investments. Free cash flow, combining the cash flows from operating activities and investing activities was negative JPY 15.9 billion.
On Page 14, you will see the actual results of R&D, CapEx and depreciation. On Page 15, you will see revenue by region. Next is the forecast of the consolidated results for fiscal year 2022. Please turn to Page 17. This time, we are upwardly revising the forecast for orders received, revenue and operating and other profit following the updated FX rate assumptions while reflecting the actual sales performance in the spare parts business for regional engines.
Now we are assuming USD 1 to be JPY 130, which was JPY 115 before the revision. Now we are expecting orders received to be JPY 1.33 trillion. Revenue to be JPY 1.35 trillion. Each of the items upwardly revised by JPY 50 billion. Operating profit is now expected to be JPY 85 billion, upwardly revised by JPY 10 billion. FX rate sensitivity from Q2 onward, JPY 1 move will have JPY 900 million impact on our operating profit.
Please turn to Page 18. Orders received forecast by segment. We have reflected the impact coming from the updated FX rate assumptions into resources, energy and environment, Industrial Systems and General-Purpose Machinery and Aero Engine, Space and Defense segments. We have also incorporated the recent spare parts for regional jet engine situation into the Aero Engine Space and Defense segment forecast.
Please turn to Page 19. Revenue and operating profit by segment. As orders received forecast increased, revenue forecast for the 3 segments, including Resources, Energy and Environment, Industrial Systems and General-Purpose Machinery and Aero Engine, Space and Defense are now upwardly revised. Operating profit will be explained on the next page.
Page 20, changes in the operating profit forecast by factors. This time, operating profit forecast for Aero Engine Space and Defense has been upwardly revised by JPY 10 billion. The breakdown of this JPY 10 billion is minus JPY 5 billion coming from spare part sales for regional jet engines and plus JPY 15 billion as a result -- of the result, revised foreign currency exchange rate assumptions.
Operating profit forecast for Resources, Energy and Environment and Industrial Systems and General-Purpose Machinery remain unchanged since the magnitude of the impact following the FX rate assumption revision is not going to be so significant.
Please turn to Page 21. No change with the cash flow forecast. We are aiming to generate JPY 130 billion cash flows from operating activities on a net basis, while generating additional profit, we are expecting to pay additional tax corresponding to the previous year's profit.
Lastly, we are thoroughly execute initiatives under project change we are working on to recover the earnings to achieve results to generate JPY 85 billion operating profit and JPY 130 billion cash flows from operating activities in fiscal 2022 as we have communicated today.
We have to say during Q1, spare parts sales for regional jet engines were not being able to recover on a full-fledged basis. Other businesses were also affected by the changing external environment, including the vehicular turbocharger business, which had to face with the lockdown situation in China. Although the business environment seems to be continuously uncertain by taking the right actions in a timely manner, we will develop a strong earnings foundation.
This will conclude my presentation.