When the MFP business began to be affected by lockdowns around the world due to COVID-19, the Board of Directors held discussions which led to the conclusion that "non-hardware revenue in the MFP business will never be the same, even when COVID-19 goes away. This phenomenon is not a temporary change but a structural transformation." This idea prompted me to request our executive officers to revise the Medium-term Business Plan that began in Fiscal 2020. We need to assume the transition to a paperless society will happen faster than we anticipated, to accelerate the transformation of the MFP business and the portfolios of all Konica Minolta businesses, and to envision what that transformation will look like in 2025 when it is done. I have therefore asked executive officers to be mindful of what we will need to do to achieve these things by 2022. As a first step, the Board of Directors has approved our revised Medium-term Management Policy. I have also asked executive officers to re-examine the Medium-term Business Plan with regard to the allocation of cash and what key operational measures we will employ to achieve the transformation, and the Board of Directors has reviewed and approved these revisions. Business operations will be carried out in Fiscal 2021 and 2022 in accordance with this policy and plan.
Although I am reluctant to say this, we are in the red for Fiscal 2020. However, it is obvious that this is due to countries' lockdowns in response to COVID-19, and my above-mentioned request to revise the Medium-term Business Plan was done based on the belief that we are undergoing a structural change. At the same time, the Board of Directors needs to keep in mind the things we did well in Fiscal 2020, as well as the achievements that led to earnings recover beginning in Fiscal 2021 and further the transformation of our business portfolio.
First among the achievements I've noted has been cutting fixed costs and reducing the breakeven point ratio in the MFP business even as COVID-19 drove revenues down. A second achievement is CCC (cash conversion cycle) improvements made by our businesses, which led to regaining an operating cash flow level equivalent to ¥100 billion for the full fiscal year. As a third achievement, the sensing, performance materials, and imaging-IoT solutions businesses, which compose the Industry Business (businesses that will play a central role for the company following the business portfolio transformation) realized both increased revenues and profit for the full fiscal year, a sign that our strategies are on the right track. A fourth is our launching of FORXAI, an AI-powered software platform for providing solutions in the imaging field, an area where we excel. FORXAI gives the Industry Business a new competitive edge and allows the imaging-IoT solutions business to grow through provision of the service to our partners worldwide. A fifth achievement is making progress in efforts to enhance the business value of the precision medicine business.

With regard to the precision medicine business, I would like to talk about the discussions we have been having with investors attending our small meetings. One such investor asked, "in evaluating Konica Minolta, is there anything we might be overlooking as investors?" My answer was as follows. "Concerning the precision medicine business, I feel there is a disconnect between investors' opinion of the business and the actual situation. I regret that the information we share about this business with investors concerning its financials consists primarily of planned and actual results for business earnings. However, this business has already established a foothold through technologies and sales channels in a high growth potential market with a TAM^*1 of over $40 billion^*2 , and had a gross margin ratio of 59% in normal conditions (Fiscal 2019). Although the business has yet to make an earnings contribution to the Group due to a focus on establishing a position in growth markets and continuing investment aimed at realizing our three-stage growth strategy, some have spoken highly of the business' growth potential. Whether the business is a failed one that has yet to contribute to earnings after being acquired, or whether it's a business that is most certainly generating business value, depends on the view of the investor.” This seemed to give the investor who asked the question a new perspective on the issue, and I believe our dialogue was a constructive one.

At Konica Minolta, the CEO, Chairman of the Board, and Secretariat of the Board of Directors discuss and determine Board agenda items and the goals of those items for three months out. I refer to the Board of Directors Operating Policy that I formulated at the beginning of the year and, in an oversight capacity, propose matters to be reviewed as agenda items. The following are agenda items for assessing our progress in implementing the management policy approved by the Board of Directors, as well as distinctive agenda items established over the past 12 months.
I have requested a full accounting of Konica Minolta's management system and a report on what issues have been brought to light and how we should tackle them. Similarly, I have requested a full accounting of the Company's corporate culture and a report on issues identified and means to tackle them. These agenda items have been set because of how significantly they will impact our ability to take action toward implementing the management policy. This is because, although it is important that the Board expresses its views after the results of these reviews are in, it is more constructive and effective if the Board gives its opinions once it has learned about the current situation with respect to the factors contributing to the results. The CEO and outside directors have given positive feedback on the importance of establishing agenda items and on the matters they have discussed.
Based on external assessments, we have established and discussed agenda items concerning the current state and future direction for improving the Company's innovativeness and ability to cultivate markets, which are fundamental elements to building corporate value. I believe the Company has systematized a companywide capacity for creating innovation, a fact borne out by the continual acclaim we receive. However, the Company's non-financial evaluations are not consistent with its financial evaluations, which I think is due to lacking a method for turning innovativeness into profitmaking capability. Since we must rely on certain key staff for the time being, we need to appoint the right people if we are going to transform the MFP business and achieve a companywide business portfolio transformation. As such, I will be overseeing efforts to assign those who will lead each business and recruit additional people when needed.
Naturally, we have also made an agenda item for discussing current efforts to address sustainability issues, an area of great interest for stakeholders. Observing Q&A sessions from the standpoint of Chairman, I feel our executive officers are more experienced and knowledgeable on this subject. Currently, questions from outside directors are generally rather surface level. Since 2009, when I was CEO, our executive team has established targets and made good achievements under the banner of needing to become "a company that is vital to society in order to become a company capable of sustainable growth." Because of this, we are seeing experience level differences between them and our outside directors. A new outside director will take part in this year's discussions on the subject, and I have high hopes for these discussions.
This concludes my annual review as Chairman of the Board. I look forward to continued constructive dialogue with all investors and stakeholders.

*1  TAM: Total Addressable Market. The largest possible market attainable for a product or service.

*2  Source: BCC Research (2021). Biomarkers: Technologies and Global Markets.