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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 9 months of the fiscal year 2021 based on the PowerPoint presentation materials, disclosed at 3:00 p.m. today. As with the period until the second quarter, the figures for the previous year are restated from JGAAP to IFRS, for the purpose of year-on-year comparison. .
Please turn to Page 4. This slide shows an overview of the results. The situation continues to be uncertain due to the spread of a new variant of COVID-19, prolonged shortage of semiconductor supply as well as rising raw material prices. In such a business environment, we were able to achieve increase in all the profit lines steadily, including the operating profit.
First of all, in Aero Engine, Space and Defense, due to the recovery in aero transportation demand centered on North America and Europe, sales of spare parts for civil aero engines increased. In addition, we were able to reap the benefits of improvement in profitability due to total cost reductions in the manufacturing process, among other factors. Also helped by yen depreciation, the third quarter operating profit for 3 months period from October to December turned positive for the first time since the fourth quarter of the fiscal year 2019.
In the 3 non-aero businesses, namely resources, energy, environment, social infrastructure and offshore facilities as well as Industrial Systems and General-Purpose Machinery, the performance generally remained firm following the second quarter trend despite the negative impact from inflation and supply chain disruptions in some businesses. We are also seeing steady results from activities to improve the cash conversion cycle through controlling the level of increase in inventory assets, which normally build up towards the end of the fiscal year and also through promoting collection of payments for construction and so forth. And together with the impact from the sale of assets held, the cash flows remained positive from the second quarter. I will explain details in the pages that follow.
Please turn to Page 5. This slide shows the consolidated results, including orders received and the income statement. Orders received increased by JPY 160.5 billion or up 23.5%. Revenue was up by JPY 50.9 billion, an increase of 6.7%. As shown at the left bottom, the average exchange rate for revenue up to the third quarter was JPY 111.62 to the U.S. dollar. There was JPY 4.97 depreciation from the previous corresponding period. Operating profit was JPY 45.5 billion due to higher revenue, the impact from sale of assets and also due to the positive impact from various initiatives aimed at reinforcing the cost structure. Profit attributable to owners of parent was JPY 27.6 billion.
Please turn to Page 6. This page is for orders received and order backlog by segment. Orders received increased in all the reportable segments. In Resources, Energy and Environment, orders increased significantly in carbon solutions and nuclear energy. In Aero Engine, Space and Defense, orders increase was moderated by a few billions of yen, but in the civil aero engine business, orders increased by JPY 17.5 billion, mainly driven by spare parts. Overseas orders received was JPY 384 billion, representing 46% of total orders. As shown on the right, order backlog at the end of December was JPY 1,188.2 billion, up slightly year-over-year.
Please turn to Page 7 for revenue and operating profit by segment. In Resources, Energy and Environment, revenue increased due to higher revenue in nuclear energy and also due to progress in planned construction overseas. Operating profit increased due to higher revenue in nuclear energy as well as improvement in profitability through stricter management of projects despite a decrease in life cycle business in Carbon Solutions and Power Systems. In Social Infrastructure and Offshore Facilities, over real estate sales in urban development decreased, revenue increased in bridges and water gates and Shield systems.
Operating profit decreased due to the soaring steel prices and marine transportation cost centered on Bridges projects overseas. Lower real asset sales in addition to the effective gain on sales of investment property recorded in the previous corresponding period. Revenue in Industrial System and General Purpose Machinery increased in heat treatment and surface engineering and rotating machineries. However, sales of vehicular turbochargers are stagnant due to the recovery of automobile production remaining moderate.
Operating profit increased year-on-year due to higher revenue, positive impact from the initiatives aimed at improving the breakeven point in addition to the effect of the restructuring cost recorded in agricultural machinery in the previous corresponding period. In Aero Engine, Space and Defense, revenue increased significantly year-on-year for civil aero engines and spare parts due to the recovery in demand from the impact of COVID-19.
The segment loss contracted substantially due to higher sales of spare parts and also the improvement in profitability per engine through total cost reductions, yen depreciation and the effects from the sale of assets, among other factors. I will explain the situation regarding civil aero engines and vehicular turbochargers using Pages 9 and 10, respectively. Overseas revenue was JPY 359.4 billion, up 5 points year-on-year, representing 44% of total revenue.
Please turn to Page 8. This is a breakdown by segment of the JPY 46.6 billion year-on-year increase in operating profit. Change in revenue had JPY 7.2 billion positive impact on the operating profit. This is mainly due to the increase in sales of spare parts in civil aero engines. Change in construction profitability pushed up the operating profit by JPY 11.5 billion. We assess this positive impact was as a result of reaping the benefits from steady progress in the initiatives aimed at improving the cost structure set forth in the project change.
The positive impact from the change in foreign exchange rate was JPY 4.8 billion. Change in SG&A pushed down the operating profit by JPY 8.6 billion, which was due to an increase in R&D expenses incurred to create growth businesses as well as a rise in other expenses along with the recovery in sales. Change in other income and expenses had JPY 31.7 billion positive impact on the operating profit. The effect from the sale of assets, including the ex IT works and the land for rental property in Yokohama was booked in adjustment.
Please turn to Page 9. The main graph shows a trend of quarterly revenue of civil aero engines in total in bars and the spare parts transaction volume in a solid line. Demand for aero transportation in domestic lines and short-haul international lines are recovering moderately, and there has been a steady recovery in sales of our spare parts for civil aero engines, which were also supported by a seasonal factor in the third quarter. Although it may not be a strong linear recovery, we believe the recovery trend will continue next year onwards.
Please turn to Page 10. This page shows the number of deliveries of vehicular turbochargers and revenue by region on a quarterly basis. Although the impact from reduced auto production caused by the shortage of semiconductors and supply chain disruptions is waning after the second quarter being the most serious, recovery remains moderate against our expectations. And we think it will take some more time before we can confirm the impact to disappear completely.
Please turn to Page 11. Finance income and costs. Foreign exchange gains has improved from the previous fiscal year change of FX rate. As you see in the chart, at the end of Q3, yen became weaker against U.S. dollar than expected, which has had a positive impact on our income. Share of profit in Japan Marine United, which is included in share of profit of investments accounted for using equity method was a small positive for 2 consecutive quarters, thanks to weaker yen, although affected by higher steel price.
Please turn to Page 12. Consolidated balance sheet. Total assets decreased by JPY 12 billion. As a result of using cash on hand to repay interest-bearing liabilities, outstanding interest-bearing liabilities as shown in the middle was JPY 575.9 billion, decreased by JPY 30 billion from the end of the previous fiscal year. Total equity was JPY 354 billion, increased by JPY 26.3 billion from the end of the previous fiscal year. All in all, debt-to-equity ratio was 1.63x, and ratio of equity attributable to owners of parent was 18.1%, both improved from the end of the previous fiscal year.
Page 13, please. Consolidated cash flows. Cash flows from operating activities was a positive for 2 consecutive quarters, improved by JPY 73.2 billion on a year-on-year basis. This was achieved as a result of smaller increase or decrease in working capital, thanks to internal effort to encourage construction payment and to control inventories. Cash flows from investing activities was positive JPY 1.5 billion. Major factor was the asset sales to secure the financing to create growth businesses. As a result, free cash flow was JPY 5.7 billion, increased by JPY 121.2 billion from the same period in the previous fiscal year.
On Page 14, we have actual results of R&D, capital expenditure and depreciation and on Page 15, revenue by region. Please take a look at them later. Now let us share our forecast of the consolidated results for fiscal 2021. Page 17. We have upwardly revised the orders received, revenue and operating and other profits full year forecast. Details are available on Page 17 onwards. No change with the foreign currency assumption we have for Q4, we are assuming USD 1 to be JPY 105. Foreign exchange rate sensitivity for U.S. dollar, JPY 1 move will have roughly JPY 300 million impact on our operating profit.
Please turn to Page 18. Let us now talk about the progress we are making with the 3 performance recovery drivers. Expansion of life cycle business, strengthened cost structure and reform business structure, which are the initiatives we are working on under project change to get back on the growth path. Our plan has been to generate JPY 31.4 billion by working on the performance recovery drivers. Through various initiatives, we believe we are now making a good progress. The progress ratio has been exceeded 70%, and we generally have visibility to achieve the remaining 30% minus by the end of the fiscal year.
Although some of the businesses have been negatively affected by the external environment, we are expecting to generate JPY 80 billion operating profit since spare part sales under civil aero engine business has been trending better than expected and by contributions to be made by performance recovery drivers. Please turn to Page 19. Orders received forecast by segment. Following the recent trend, we are now expecting an increase in Nuclear Energy business under Resources, Energy and Environment segment.
Page 20. Revenue and operating profit forecast by segment. Let me explain the details on revenue for cash changes on this page. Changes in operating profit will be explained on the next page. Revenue forecast for Resources, Energy and Environment is now reflecting the good progress we have been making in the construction works on overseas carbon solution progress and the increase in nuclear energy-related constructions. Revenue forecast for Industrial Systems and General-Purpose Machinery is now expecting slower-than-expected sales recovery in vehicular turbocharger business and delay in sales recognition of logistics and industry systems and parking businesses.
Page 21, please. Reasons for the changes in operating profit full year forecast. Operating profit forecast for social infrastructure and offshore facilities is now incorporating soaring steel prices and marine transportation costs in bridge and water gate overseas projects. Operating profit for Industrial Systems and General-Purpose Machinery has now incorporated the following situations. First, vehicle turbo charger business recovery from auto production cutback, trending weaker than expected. And second, we have been experiencing some delay in increasing profitability by strengthening cost structure.
In the meantime, operating profit or Aero Engine, Space and Defense has been upwardly revised. First, less newly installed engine sales is now expected with which we need to incur heavy initial burden in civil aero engine business. Second, stronger sales part sales, mainly for existing models have been confirmed. And third, by reflecting the actual FX trend and the asset sales we have already made over the first 3 quarters. The whole JPY 10 billion equivalent risk buffer, incorporated in adjustment has now been fully reversed.
Please turn to Page 22. Cash flows forecast. Cash flows from operating activities has been upwardly revised by JPY 10 billion, following the upward revision in consolidated basis operating profit. Cash flows from investing activities has been upwardly revised by JPY 30 billion following the delay in some of the CapEx and increase in asset sales, et cetera. Combining the 2 free cash flows is now expected to be JPY 70 billion, which has been upwardly revised by JPY 40 billion.
Page 23, please. Year-end dividend forecast. Our dividend policy is as shown on the slide. Following the upward revision on our earnings at this moment and by taking our dividend policy into consideration, we have decided to increase the annual dividend per share by JPY 10 from JPY 60 to JPY 70. We believe that at the end of Q3, we have been generally making a good progress to achieve the upwardly revised consolidated forecast.
Now we have less than 2 months to go, we will further strengthen our earnings foundation and cash generation capability by continuously expanding the life cycle business, which is the initiative we started to work on from the beginning of the fiscal year as performance recovery drivers and by making sure to execute all the measures to strengthen our cost structures. Lastly, ESG-related initiatives we are working on are available on Page 34 and 35. Please take a look at them later. This concludes my presentation.