I am Junichi Arai, Corporate General Manager, Corporate Management Planning Headquarters. I will talk about financial results for the nine months of fiscal year 2018. This page shows year-on-year comparison. Net sales were 622.3 billion JPY, up 21.1 billion JPY. As exchange rate effect was negative 5.7 billion JPY, net sales were up 26.8 billion JPY in real terms. Operating income was 24.5 billion JPY, up 2.1 billion JPY. Negative factors include 2.7 billion JPY increase in fixed cost, such as personnel cost and depreciation associated with investment. Exchange rate effect was negative 1.1 billion JPY. Negative 3.2 billion JPY was from others, including slightly more than 2 billion JPY of increased cost associated with a large-scale order in the Power and New Energy segment. Those negative factors were more than offset by 9.1 billion JPY from increase in sales volume.
Operating income increased 2.1 billion JPY in total to 24.5 billion JPY. Non-operating items improved 2.5 billion JPY due to improvement in net interest expense, equity in losses of affiliates, foreign exchange income and loss, and others. Ordinary income was 26.5 billion JPY, up 4.6 billion JPY. For extraordinary income and loss on the balance sheet, we booked foreign exchange gain associated with consolidation of 2 subsidiaries and liquidation of one subsidiary in Malaysia. Liquidation was completed, we booked 1.3 billion JPY of gain on reversal of foreign currency translation adjustments. Gain on sales of investment securities decreased 800 million JPY. As a result, extraordinary income net of extraordinary loss was almost flat year-on-year. Net income attributable to owners of parent was 16.4 billion JPY, up 3 billion JPY. I will look at net sales and operating income by segment for the nine months.
In Power Electronics Systems, Energy Solutions, and Power Electronics Systems, Industry Solutions, both net sales and operating income increased. In Power and New Energy, although net sales increased, operating income was down 1.9 billion JPY. I said earlier, it was due to increased costs associated with a large-scale order. In Electronic Devices, net sales and operating income of both semiconductors and magnetic disks increased. In Food and Beverage Distribution, vending machines grew year-on-year, mainly in Japan and also in China. Store distribution was down year-on-year. In the segment in total, both net sales and operating income decreased. Net sales increased 21.1 billion JPY and operating income increased 2.1 billion JPY. I will comment on business results by segment. In Power Electronics Systems, Energy Solutions, net sales were 144.3 billion JPY, up 2 billion JPY.
Operating income was 7.9 billion JPY, up 3.2 billion JPY. The number in the box shows exchange rate effect in year-on-year comparison. Exchange rate pushed down net sales by 1 billion JPY. On a constant currency basis, net sales were up 3 billion JPY. In the energy management business, net sales decreased primarily as a result of reduced demand for smart meters and industrial power supply equipment. Operating results increased slightly. In the power supply and facility systems business, net sales and operating results increased due to an increase in large-scale orders. In the ED&C components business, net sales and operating results increased because of higher demand seen from distribution panel manufacturers since last year. In Power Electronics Systems, Industry Solutions, net sales were 212.4 billion JPY, up 6.6 billion JPY. Operating income was 4.3 billion JPY, up 1.5 billion JPY. In this segment, there are 5 businesses.
In the factory automation business, net sales and operating results increased due to increased domestic demand centered on low voltage inverters, motors, and factory automation systems. The benefits outweighed the impacts of severe trends, which started mainly in China in the second half of the fiscal year. In the process automation business, net sales and operating results decreased due to the absence of a large-scale order recorded in the previous equivalent period. In the social solutions business, net sales decreased slightly, but operating results increased slightly. In the Equipment construction business, net sales and operating results increased following an increase in orders for electrical Equipment Construction. In the IT solutions business, net sales and operating results increased due to strong performance centered on the public sector. In Power and New Energy, net sales were JPY 71.1 billion, up JPY 15.3 billion, mainly due to large-scale orders.
Operating income deteriorated by JPY 1.9 billion to negative JPY 500 million, unfortunately, due to higher costs associated with the large-scale order that I mentioned earlier. In Electronic Devices, net sales were JPY 103.8 billion, up JPY 5.2 billion. Operating income was JPY 11.7 billion, up JPY 800 million. In this segment, exchange rate effect was significant. The exchange rate effect on net sales was negative JPY 2.3 billion and negative JPY 600 million on operating income. For semiconductors, net sales for the nine months were almost flat year-on-year, thanks to robust demand for automotive applications, despite the impacts of the slowdown in the industrial power semiconductor market that emerged in the second half of the fiscal year. However, net sales for the third quarter, the period from October to December, were slightly down. For magnetic disks, net sales increased both for the nine months and for the third quarter.
In the segment in total, net sales and operating results increased. Distribution of semiconductor sales by field is shown in the table on the right. Roughly speaking, industrial field accounted for 70% and automobiles 30%. In Food and Beverage Distribution, net sales were JPY 81.7 billion, down JPY 4.5 billion. Operating income was JPY 3.2 billion, down JPY 1.3 billion. In the vending machines business, demand from domestic customers were quite robust, and demand in China also increased year-on-year. In the store distribution business, net sales and operating results decreased, partly because of a decline in demand for store equipment for convenience stores. This slide shows sales by Japan and overseas area. Net sales for the nine months were JPY 622.3 billion, up JPY 21.1 billion year-on-year. Overseas net sales were JPY 168.3 billion, up JPY 4.9 billion. Net sales in Japan were JPY 454 billion, up JPY 16.2 billion.
The exchange rate effect on overseas sales was negative JPY 5.7 billion. On a constant currency basis, overseas net sales increased more than JPY 10 billion. The ratio of overseas sales was 27%. As for breakdown of JPY 168.3 billion of overseas net sales by area, net sales in Asia and others were JPY 86 billion, up JPY 6.2 billion. Net sales in China were JPY 59.8 billion, up JPY 1.2 billion. Net sales in Europe and America were down slightly more than JPY 1 billion, respectively. In Asia and others, sales of Industry Solutions, Power and New Energy, and Electronic Devices increased. In China, sales of Energy Solutions, Electronic Devices, and Food and Beverage Distribution increased. This slide shows year-on-year comparison of financial results for the third quarter, the period from October to December. Unfortunately, both sales and income decreased year-on-year. Net sales were JPY 202.8 billion, down JPY 3.3 billion.
Operating income was JPY 6 billion, down JPY 3.7 billion. Ordinary income was JPY 7 billion, down JPY 3.1 billion. Net income attributable to owners of parent was JPY 3.8 billion, down JPY 3.3 billion. Excluding exchange rate effect, net sales increased in real terms. By segment, in Power Electronics Systems, Energy Solutions, net sales were down JPY 2.5 billion, and operating income was up slightly. Net sales were down due to the absence of large-scale orders recorded in the same period of the previous fiscal year. In Power Electronics Systems, I ndustry Solutions, net sales were up JPY 3.2 billion, and operating income was up JPY 1.5 billion. In Power and New Energy, net sales were up JPY 4 billion. Operating income was down JPY 2.6 billion, unfortunately, due to higher costs associated with a large-scale order that I mentioned earlier.
In Electronic Devices, both net sales and operating income were down slightly, mainly due to industrial power semiconductors. In Food and Beverage Distribution in the vending machines business, results in China were down year-over-year in the third quarter. Results in store distribution were also down. As a result, both net sales and operating income decreased in this segment. In total, net sales decreased JPY 3.3 billion, and operating income decreased JPY 3.7 billion. I forgot to mention one thing earlier. For the nine months, operating income, ordinary income, and net income attributable to owners of parent reached record highs. This slide shows comparison of balance sheet between the end of March 2018 and the end of December 2018. Inventories increased towards February or March, mainly for lots of plant-related sales to be booked. Inventories stood at JPY 199.1 billion, an increase of JPY 49.4 billion.
To fund inventories, we increased interest-bearing debts by JPY 36.6 billion and reduced cash and time deposit by JPY 7.5 billion. The decrease in accumulated other comprehensive income includes valuation loss on available-for-sale securities of slightly more than JPY 10 billion. Accumulated other comprehensive income decreased JPY 13 billion in total. Net interest-bearing debt increased JPY 44.2 billion to JPY 174.4 billion. Net D/E ratio increased 0.1 times to 0.5 times. Equity ratio was 34.3%. This slide shares financial results forecast for fiscal year 2018 in comparison with previous forecast announced in October. We revised down forecast both of sales and income.
We revised down net sales forecast by JPY 5 billion to JPY 905 billion, operating income by JPY 3 billion to JPY 58 billion, ordinary income by JPY 2.5 billion to JPY 60 billion, and net income attributable to owners of parent by JPY 3.5 billion to JPY 38 billion. For Power Electronics Systems, Energy Solutions, Power Electronics Systems, Industry Solutions, and Food and Beverage Distribution, we kept previous forecasts of both net sales and operating income unchanged. For Power and New Energy, we kept net sales forecast unchanged. We revised down operating income forecast by JPY 2 billion by incorporating higher cost associated with a large-scale order. For Electronic Devices, we revised down net sales forecast by JPY 6 billion and operating income by JPY 900 million.
For Electronic Devices, about the half of the downward revision of net sales forecast is from industrial power semiconductors, and the remaining half is from magnetic disks. In total, we revised down net sales forecast by JPY 5 billion and operating income by JPY 3 billion. This slide shows year-on-year comparison with full year forecast revised on January 31st. Net sales are expected to be JPY 905 billion, up JPY 11.5 billion. Operating income will be JPY 58 billion, up JPY 2 billion. Ordinary income, JPY 60 billion, up JPY 4 billion. Net income attributable to owners of parent, JPY 38 billion, up JPY 200 million. Although we revised down forecast, we expect both sales and income will increase year-on-year. Operating income, ordinary income, and net income will reach record highs if we can achieve forecast in real terms.
Net income reached record high of JPY 41 billion in fiscal year 2016. However, that included slightly more than JPY 10 billion of an extraordinary factor associated with unwinding of cross-shareholdings. Excluding that factor, net income will also reach record high in real terms. By segment, in Power Electronics Systems, Energy Solutions, and Power Electronics Systems, Industry Solutions, both net sales and operating income will increase. In Power and New Energy, although net sales will increase, operating income will decrease JPY 1.3 billion. In Electronic Devices, both net sales and operating income will increase. In Food and Beverage Distribution, net sales will decrease due to store distribution, but operating income will be flat. In total, net sales will increase, and operating income will increase JPY 2 billion. So far, I talked about full year forecast. Let me share with you positive information.
As for semiconductors for automobiles, actual orders for EVs are increasing significantly. We would like to accelerate timing of slightly more than JPY 20 billion of CapEx for front end for expansion. In preparation for the next fiscal year, we intend to make further efforts to achieve increase in sales and income. That concludes my presentation.