I am Arai, responsible for Corporate Management Planning Headquarters. As President Kitazawa mentioned earlier, we recorded decline in net sales and operating income in fiscal year 2019 due to trade conflict between the U.S. and China. We started fiscal year 2020 with uncertainties, unable to draw up a budget. We were hit by COVID-19 pandemic. We ended up the year with the results you are seeing now. We are breathing a little easier for now. This is thanks to the PRO-7 activities led by the president since 2012. It had changed shape over the years but has formed a system for the company which resulted in each business group gaining strength year-on-year. Allow me to explain the profit and loss results compared to the previous year. Net sales were down JPY 24.7 billion to JPY 875.9 billion year-on-year.
Gain on translation of earnings of overseas subsidiaries was JPY 9.6 billion, the actual decline comes to JPY 34.3 billion. Operating income was up JPY 6.1 billion to JPY 48.6 billion year-on-year with net operating margin of 5.5%. On analysis, factors impacting operating income include power semiconductors and IT-related businesses recording increases in sales and income. Vending machines, store distribution, new energy, and power generation saw decreased sales and income. Decrease in sales and production volumes came to JPY 7.2 billion. Controllable costs were reduced to give decrease in fixed costs of JPY 8.8 billion. Exchange rate effect came to JPY 800 million and others, including differences of profitability of projects, came to JPY 3.6 billion, resulting in increase in operating income by JPY 6.1 billion.
As for non-operating income, gain on foreign exchange came to JPY 900 million and others, which is loss recorded in Asia due to COVID-19 coming to JPY 1.2 billion, giving us non-operating loss of JPY 200 million. Ordinary income came to JPY 50.4 billion. Cost of corrective measures for semiconductor IGBT malfunction, as reported in the third quarter, was increased by JPY 9 billion in the fourth quarter to come to JPY 25.7 billion. Provision was recorded so as not to leave impact in fiscal year 2021. The gain on sales of investment securities continuing from the first half came to JPY 40.9 billion, an increase of JPY 38.3 billion from the previous year. Extraordinary income was up JPY 13.5 billion year-on-year to JPY 12.9 billion in absolute value for fiscal year 2020.
Net income attributable to owners of parent was up JPY 13.1 billion to JPY 41.9 billion. It includes a special factor of sales of equities or shares, but operating income and ordinary income were recorded with extraordinary income recorded as well, giving us record high net income. Please turn to page three. This is an analysis of the JPY 6.1 billion increase in the operating income to come to JPY 48.6 billion. Please refer to this waterfall chart showing breakdown of changes in operating results as I explained earlier, decrease in sales and production volumes of minus JPY 7.2 billion, increase in fixed costs of JPY 8.8 billion, and gain from foreign exchange rate of JPY 800 million and others of JPY 3.6 billion. Please turn to page four, net sales and operating income by segment.
Food and Beverage Distribution recorded a large decline both in sales and income, while Power generation saw a big decline in net sales due to absence of sales recorded in the previous year. Electronic devices and Power Electronic Systems Industry recorded considerable increase in both net sales and operating income. Power Electronic Systems Energy and Power generation saw decline in net sales but recorded operating income. Power Electronic Systems Industry and Electronic devices saw increase in both net sales and operating income. In total, net sales were down JPY 24.7 billion with operating income increasing JPY 6.1 billion. From page five onwards, please find business results by subsegment. Power Electronic Systems Energy saw net sales decrease by JPY 8.8 billion year on year with operating income up JPY 1.7 billion.
Energy management saw decrease in net sales with decline in demand for smart meters and absence of large-scale projects for industrial power supply equipment recorded in the previous fiscal year, but recorded increase in operating income. Power supply and facility systems saw a decrease in net sales due to a rebound from large-scale projects recorded in switchgear and control gear operations from the acquisitions of a company in Asia from the previous year. With cost reduction efforts saw an increase in operating income. ED&C components saw weak market conditions in the first half, and efforts were made in the second half for recovery, but were, unfortunately, short of offsetting the decline in the first half, resulting in a decline in both sales and income. Power Electronic Systems Industry, net sales were up JPY 28.4 billion and operating income up JPY 5.2 billion year-on-year.
This was largely due to IT solutions, which saw large increases in both net sales and operating income, especially with large-scale orders related to the GIGA School concept. Automation saw increases in both net sales and operating income. Demand in Japan was sluggish, but in China, demand for factory automation components was strong. Social Solution also saw an increase in both sales and operating income. Turning next to page six, electronics devices. Net sales were up JPY 20.1 billion and operating income by JPY 7.9 billion. Semiconductors saw large increases in both net sales and operating income as demand rose for power semiconductors for automobiles, xEVs, and for new energy market and factory automation systems. As for magnetic disks, due to the circumstances surrounding our customer, we saw both a decline in net sales and operating income.
Breakdown of sales of electronic devices for semiconductors and magnetic disks and distribution of semiconductor sales by fields, that is industrial modules, industrial discrete devices, and automobiles for fiscal year 2019 and 2020 are shown in the top box. I would like to highlight that automobiles have increased from 35% in fiscal year 2019 to 39%, close to 40% in fiscal year 2020. Next, power generation. Net sales were down JPY 29.5 billion with operating income of JPY 200 million. Net sales were down considerably due to the absence of large-scale thermal power system projects and renewable energy projects recorded in the previous fiscal year. With differences in project profitability and cost reduction efforts, operating income was positive. Food and Beverage Distribution saw decreases in both net sales and operating income of JPY 27.9 billion and JPY 9.1 billion, respectively.
Sales and income declined for both vending machines and store distribution. Large decreases in sales and income from vending machines were due to lower demand from Japanese beverage manufacturers, as well as in China and other Asian markets. Decreases in sales and income for store distribution were due to a decline of demand for store equipment for convenience stores and postponement of delivery of equipment. Page seven shows a breakdown of year-on-year changes in the amount of orders received by products. Orders declined in fiscal year 2020 from the previous year to JPY 887.9 billion. Major components are a rise in orders by JPY 13.9 billion year-on-year, especially in semiconductors and ED&C components. Orders for vending machines decreased by 36%, and factory automation saw a slight decline in the amount of orders as well.
Bar graphs on the right-hand side of the page show quarterly changes in the amount of orders. As you can see, it continued to grow from the first quarter to the second to the third to the fourth. On the far right is a comparison against the previous year and the previous quarter. The trend of the orders shows all items except for vending machines, which recorded a decline year-on-year, saw a rise in orders compared to the previous year, as well as to the previous quarter. Please turn to page eight for year-on-year comparison of net sales in Japan and overseas. In total, net sales declined by JPY 24.7 billion year-on-year to JPY 875.9 billion in fiscal year 2020. Overseas sales increased by JPY 1 billion to JPY 221.9 billion, while for Japan, sales decreased by JPY 25.7 billion to JPY 654 billion.
China saw an increase by JPY 21.2 billion, led by a rise in semiconductors, automation systems, and ED&C components. Asia and others were down by JPY 16.4 billion, led by a decline in power supply and facility systems, magnetic disks, power generation, et cetera. Europe and the Americas also saw a slight decline. Page nine shows summary of consolidated financial results for fiscal year 2020 compared to the forecast announced at the end of the third quarter on January 28th of this year. All items exceeded the forecast, namely net sales by JPY 15.9 billion, operating income by JPY 7.6 billion, ordinary income by JPY 7.9 billion, net income attributable to owners of parent by JPY 8.9 billion. This is owing to more than expected increase in ED&C components for Power Electronic Systems Energy and ITs for Power Electronic Systems Industry. In addition, there was depreciation of the yen.
All these factors resulted in higher operating income by JPY 7.6 billion. Page 10 shows consolidated balance sheet at the end of fiscal year 2020 compared to the end of March fiscal year 2019. Cash and time deposits increased by JPY 12.5 billion. Notes and account receivables, trade receivables increased by JPY 25.1 billion, total long-term assets by JPY 21.6 billion. Total assets were up JPY 55.1 billion to JPY 1,052 billion. Profit in the form of retained earnings increased JPY 30.5 billion to JPY 271.8 billion post-dividend. Net interest-bearing debt decreased by JPY 12.7 billion to JPY 140.9 billion with net D/E ratio of 0.3 times, which is a record low for the company. ROA was 4% and ROE 11%. ROE in 2019 declined to a single digit, but this fiscal year recovered to two digits, close to the level in fiscal year 2018.
Equity ratio was 39.6%, record high for the company. Page 11 show consolidated cash flows for fiscal year 2020. With higher operating income and gain on sale of shares and lower investments and loans, free cash flow came to JPY 50.4 billion, a large increase from the previous year. Commercial papers and bonds were reduced on a financial basis, giving us cash and cash equivalents of JPY 75.3 billion at the end of the period. Page 12 shows dividend of surplus at the end of the period. From fiscal year 2018, dividend of JPY 40 for a half a year has been maintained. However, for this fiscal year, with increase in operating income as well as ordinary income, and despite countermeasures taken for malfunctioning products, with gain on sales of shares, net income attributable to owners of parent increased as well.
We have just planned to increase our year-end dividend to JPY 45, up JPY 5. The dividend payout ratio is at 29%, close to the target of 30%. Page 13 is a supplementary material showing fourth quarter-on-quarter, year-on-year comparison and annual year-on-year comparison of amount of orders received for low voltage inverters, semiconductors, and vending machines for your reference. I would like to continue and explain the management plan for FY 2021. As the president mentioned earlier, we are aiming to be a JPY 1 trillion company with income of JPY 80 billion in 2023, the year in which we will celebrate our centenary. Mindful of this target, we have compiled a management plan for FY 2021 with net sales of JPY 900 billion, an increase of JPY 24.1 billion.
With forex impact, it will be more than JPY 30 billion. Operating income of JPY 60 billion, an increase of JPY 11.4 billion and net income attributable to owners of parent of JPY 42 billion, an increase of JPY 1 billion. In 2018, we recorded an operating income of JPY 60 billion, a record high for our company. The target for fiscal year 2021 will be on par with that of 2018. We will aim for a record high net income attributable to owners of parent with an increase of JPY 1 billion to JPY 42 billion. Operating margin of 6.7% will be the highest for the company when achieved. Net D/E ratio of 0.4 x, equity ratio of 41.5% exceeding 40%, ROA of 4% and ROE of 10%, maintaining double digits.
The exchange rate assumption seen at the bottom of the page is on the conservative side. Page three is a waterfall chart to reach the management plan of JPY 60 billion operating income. Unlike fiscal year 2020, we are looking for an increase in sales and production volumes totaling JPY 19.4 billion year-over-year. We will see JPY 14.5 billion in increase in fixed costs, including labor cost, R&D, depreciation, and leases paid, and other expenses, including controllable expenses. Our assumption is for a yen appreciation, resulting in exchange rate effect of -JPY 1.9 billion and others of JPY 8.4 billion, which will give us the operating income target of JPY 60 billion for fiscal year 2021, an increase of JPY 11.4 billion from JPY 48.6 billion in fiscal year 2020. Page four shows net sales and operating income by segment for fiscal year 2021 management plan.
For Power Electronic Systems Energy, net sales is to increase JPY 7.8 billion and operating income by JPY 1.2 billion. For energy management, we forecast lower sales and income due to decreased demand for railway and industry substation equipment. Power supply and facility systems will see higher sales and income. ED&C components will see higher sales and income following recovery of demand. For Power Electronic Systems Industry, net sales will decline by JPY 16.9 billion, with operating income increasing by JPY 400 million. The large decline in net sales is due to IT solutions, with sales lower by JPY 30 billion due to disappearance of GIGA School concept related demand rush. Automation Systems will see higher sales and income with recovery of the market. Social Solutions as well as equipment construction will see higher sales and income.
As of April 1st, we changed the name of the segment from Electronic Devices to Semiconductor, with three segments, namely Industrial Division, Automotive Division, and Information Division. Our plan is for net sales to increase by JPY 16.5 billion and operating income by JPY 3.9 billion. We are expecting a large increase in demand for xEV power semiconductor to lead to a considerable rise in both sales and income. Please turn to page five. For power generation, we plan net sales increase of JPY 3.6 billion and operating income by JPY 800 million due to accelerated trend of decarbonization, leading to increased acquisition of projects related to renewable energy, such as hydropower and geothermal power. For Food and Beverage Distribution, we plan net sales to increase by JPY 10.9 billion and operating income to show considerable improvement of JPY 8 billion.
For vending machines, the market is not expected to grow, but we will aim to increase market share and reduce costs. As for store distribution, we plan to increase both sales and income, targeting the higher demand. The earnings for this segment is to show massive improvement from the first half of the fiscal year, owing to structural reform and cost reduction efforts implemented in the second half of fiscal year 2020. Page six shows management plan for net sales for Japan and overseas for fiscal year 2021. The plan is for net sales to increase JPY 24.1 billion to JPY 900 billion, up JPY 1.5 billion to JPY 655 billion for Japan, and up JPY 22.6 billion for overseas to JPY 244.5 billion.
Breaking down the changes for overseas, JPY 24.2 billion in increase for Asia and others, mainly from sales in India, with sales projected to increase for power supply and facility systems, automation systems, semiconductors, and power generation. Net sales for China is expected to be lower by JPY 4.2 billion, but if we add the forex effect, it will be a slight gain. I would like to add that this is a conservative outlook. Sales in Europe and Americas are expected to increase slightly. Page seven shows a breakdown of the year-on-year changes in amount of orders received by products. Orders are projected to increase JPY 27.1 billion year-on-year to JPY 915 billion in fiscal year 2021, of which major components are showing an increase of JPY 20.6 billion to JPY 354.6 billion. The breakdown is up 22% for vending machines, 5% for semiconductors, and 8% for factory automation.
ED&C is shown to be flat. This is due to large orders received in the fourth quarter of the previous year, but I believe this is also a conservative outlook. Please turn to page eight. The plan is for capital investment to increase by JPY 25.8 billion year-on-year to JPY 61.7 billion, with investments focusing on semiconductors up JPY 21.1 billion and Power Electronic Systems Industry up JPY 5.9 billion. For semiconductors, major investments will be made into augmentation of front-end eight-inch production capacity and augmentation of back-end modules for automobile production capacity. For Power Electronic Systems Industry, we will make investments into construction of plant system building at Tokyo factory, expansion of factories and range of products manufactured in India, and increased in-house production. Page nine shows the R&D plan. R&D investment is to increase JPY 2.8 billion year-on-year to JPY 36.4 billion in fiscal year 2021.
The increase will focus on three segments, namely Semiconductors, Automotive IGBTs, SiC Modules, development of 8th-generation industrial IGBT technologies, power electronic systems industry for mobility field products such as rail cars and vessels, and power electronic systems energy for global products, ultra-large capacity UPS. Please find consolidated balance sheet at the end of fiscal year 2021 on page 10. With squeezing of cash and deposit will decrease by JPY 30.7 billion. Investment will be increased by JPY 27.2 billion. Total liabilities and net assets will decrease JPY 1.9 billion to JPY 1,055.8 billion by the end of March 2022. Retained earnings will be accumulated, increasing by JPY 29.1 billion to JPY 302 billion. With decreased cash, net interest-bearing debt will go up by JPY 21.4 billion to JPY 162.3 billion. Net debt ratio will be 0.4 x with equity ratio of 41.5%.
Page 11 show consolidated cash flow for fiscal year 2021. With measures taken under the Subcontract Act amounting to a decrease of more than JPY 20 billion in fiscal year 2020 and sales of shares and large increased investments in fiscal year 2021, free cash flow will decrease by JPY 30 billion from JPY 50.4 billion to JPY 20 billion in fiscal year 2021. Page 12 is a year-on-year comparison of the management plan for the first half of fiscal year 2021. Compared to the first half of fiscal year 2020, net sales will increase by JPY 53 billion, operating income by JPY 6.2 billion, ordinary income by JPY 5.8 billion, net income attributable to owners of parent by JPY 5.9 billion. We will aim for considerable increases both in sales and income.
By segment, except for power generation, which will see a decline in both sales and income reflecting the large solar power project from the previous year, the remaining four segments will aim to increase both sales and income. In fiscal year 2021, for Food and Beverage Distribution, we will focus efforts into vending machine and store distribution to increase both sales and income. We expect upside in orders for ED&C components, and I personally believe Power Electronic Systems and semiconductors to grow further in China. Cost is to be increased by JPY 14.5 billion year-on-year, but I think there is room for reduction. Also, we projected an appreciation of the yen, and in consideration of these factors, I think double digits may be achievable.
With this management plan, we will make utmost effort in our businesses to achieve net sales of JPY 900 billion and operating income of JPY 60 billion in fiscal year 2021. I would like to take this opportunity to ask for your continued support. Thank you for your attention.