I will explain about consolidated financial results for fiscal year 2017. Fiscal year 2017 ended with better than expected financial results. Net sales were JPY 893.5 billion, up JPY 55.7 billion, or 7% year-on-year. Operating income improved by JPY 11.3 billion to JPY 56 billion, up 25% year-on-year. Operating margin was up 0.9 point to 6.3%. Ordinary income was JPY 56 billion, We could achieve record high results in operating income, operating margin, and ordinary income. Just for your information, in a medium-term management plan, the target operating income and operating margin for fiscal year 2018 are JPY 54 billion and 6% respectively, and we already achieved these numbers in this fiscal year 2017. Extraordinary income or loss was minus JPY 16.9 billion because we recognized gain on sale of Fujitsu shares in the previous fiscal year, This led to the year-on-year decrease.
As a result, net income attributable to owners of parent decreased by JPY 3.2 billion to JPY 37.8 billion. Let me explain the year-on-year comparison of net sales and operating income by segment. Power Electronics Systems and Electronic Devices considerably drove sales and operating income. Industry Solutions of Power Electronics Systems and Semiconductors in Electronic Devices grew substantially to record an increase of JPY 55.7 billion in net sales and JPY 11.3 billion in operating income, respectively. I will explain each segment. In Energy Solutions of Power Electronics Systems, net sales grew JPY 5.4 billion and operating income was up JPY 900 million. It has four business areas. In Energy Management, net sales decreased due to a decline in smart meter sales volumes, Operating results were relatively unchanged due to the benefits of cost reduction efforts.
Transmission and Distribution Systems increased its net sales thanks to contributions from large-scale orders overseas in power and industrial fields. Operating results decreased year-on-year as a result of a less favorable sales mix. Power Supply Systems decreased in net sales due to reduced demand for power conditioning systems for solar power generation systems, Slightly improved its operating results. The important point in this segment is ED&C components. It recorded significant increase in net sales and operating results as a result of strong demand from machine tool and other machinery manufacturers in China and Japan, as well as overseas semiconductor manufacturers. Next area is Industry Solutions of Power Electronics Systems. Net sales were up JPY 29.8 billion, and operating income improved by JPY 4.3 billion. This is one of the segments which significantly improved the entire Fuji Electric financial results.
It has five business areas, Factory Automation and Process Automation posted substantial growth in sales and profit year-on-year. Factory Automation increased in net sales and operating results due to strong conditions in Japan and China, centered on markets for inverters and factory automation components. Process Automation improved in net sales and operating results because of brisk replacement demand seen in the Japanese market. Environmental and Social Solutions grew in net sales and operating results as a result of higher demand for electrical equipment for rail cars in Asia and other regions. Equipment Construction increased in net sales following strong performance in air conditioning equipment and electricity and information distribution operations, Slightly decreased in operating results due to a less favorable sales mix. IT Solutions improved in net sales and operating results due to increases in orders from the academic sector and large-scale orders from the public sector.
Next one is Power and New Energy. We recognize an increase in net sales of JPY 3 billion. Unfortunately, operating results decreased by JPY 2 billion year-on-year. Net sales increased owing to large-scale orders in thermal power generation systems, but operating results declined by JPY 2 billion because of a less favorable sales mix and operating margin. Electronic Devices is another segment which drove the earnings improvement of the company. Net sales increased by JPY 8.4 billion year-on-year, and operating income grew by JPY 5.7 billion. This is because of increased demand, especially in industrial fields, due to growing needs in automation, labor saving, and energy saving in Chinese and Japanese markets, as well as solid demand from automotive field. Food and Beverage Distribution recognized increase in net sales by JPY 8.2 billion and operating income by JPY 200 million respectively year-on-year.
Vending machine increased its sales and profit due to stronger demand in domestic market although the demand in Chinese market remained around the same level as in the previous fiscal year. Store Distribution increased in net sales following a rise in demand for store equipment for convenience stores, but operating results decreased slightly as a result of a less favorable sales mix. Next slide shows domestic and overseas net sales for FY 2017. In total, net sales increased JPY 55.7 billion year-on-year, including domestic increase of JPY 42 billion and overseas increase of JPY 13.7 billion. Looking at the overseas sales increase by region, China was JPY 7.5 billion and Asia and others was JPY 4.8 billion, and a total increase of JPY 13.7 billion mainly came from these two regions. They account for about 85% of our total overseas net sales of JPY 218.7 billion.
With such balanced growth of domestic and overseas sales, the ratio of overseas sales remained unchanged as 24%. On the next page, we compare the actual results to the forecast announced on January 29th. Positive changes were recognized for each item, such as JPY 18.5 billion for net sales, JPY 3 billion for operating income, JPY 5 billion for ordinary income, and JPY 6.8 billion for net income attributable to owners of parent. I'll elaborate more on that next page. Net sales grew significantly year-on-year in Energy Solutions and Industry Solutions of Power Electronics Systems and Electronic Devices, and they drove the JPY 18.5 billion better result than the forecast. Electronic Devices increased its operating income by JPY 900 million, and this contributed to the total improvement of JPY 3 billion. This slide shows consolidated balance sheet at the end of FY 2017.
Operating capital and fixed assets increased year-on-year as indicated in the items such as notes and account receivables, trade receivables, inventories, and notes and account payables, trade payables. This increase was covered by retained earnings, which was left after dividend payment and remained surplus was used to repay interest-bearing debts. That is the overview of the balance sheet for FY 2017. As a result, net interest-bearing debt was reduced by JPY 11.4 billion to JPY 130.2 billion. Net D/E ratio was 0.4 times, and equity ratio was 36%. This slide shows consolidated cash flow. In FY 2016, we posted JPY 33.3 billion as proceeds from sales of investment securities, including Fujitsu shares, and this resulted in positive cash flows from investing activities of JPY 9.7 billion.
In fiscal year 2017, however, we did not have such gain on sale of shares, and our investment activities were directly reflected in free cash flow, and it decreased from JPY 67.9 billion in fiscal year 2016 to JPY 38.6 billion in fiscal year 2017. It was JPY 8.6 billion higher than the forecast, which was JPY 30 billion. This is my last slide, dividend of surplus. We plan to pay JPY 8 as year-end dividend per share. For full year dividend, it will be JPY 14 with JPY 6 interim dividend per share and JPY 8 for year-end dividend per share. In fiscal year 2016, the full year dividend was JPY 11. It is expected to increase by about 27%. In retrospect, we have been able to continue dividend increase for six years in a row since fiscal year 2012.
We intend to continue this trend and increase dividend again in fiscal year 2018. That is all from me. Thank you.