I am Ichiro Matsumoto, General Manager, Corporate Finance Office. I'll start my presentation on financial results for the first quarter of FY 2017. Net sales were JPY 173.5 billion, up JPY 8.4 billion year-on-year. Operating income was JPY 2.8 billion, up JPY 500 million year-on-year. Sales and income were up due to brisk capital investment demand. Operating income of JPY 2.8 billion is record high. As for factors for change in net sales, JPY 2.8 billion was from gain on translation of earnings of overseas subsidiaries. Excluding exchange rate effect, net sales were up JPY 5.6 billion in real terms. Breakdown of JPY 500 million increase in operating income is shown on the right. Negative factors such as price decline and increase in fixed cost were more than offset by cost reduction, increase in sales volume, and exchange rate effect.
As a result, operating income increased. Non-operating items improved JPY 2 billion, mainly due to improvement in foreign exchange losses. As a result, ordinary income was JPY 2.8 billion. Extraordinary income, net of extraordinary loss, was JPY 100 million. Income before income taxes was JPY 2.9 billion. After subtracting income taxes and net income attributable to non-controlling interest, net income attributable to owners of parent was JPY 1.1 billion. Let me move on to net sales and operating income by segment. As you can tell at a glance, Electronic Devices was a contributor to our year-on-year increase in operating income and pushed up total operating income. Income of Electronic Devices increased due to strong performance of semiconductor business. I will now look at details of each segment. In Energy Solutions, net sales were JPY 42.6 billion, down JPY 3.9 billion year-on-year.
Operating income was JPY 1.5 billion, up JPY 200 million. In the energy management business, net sales decreased and operating results worsened year-on-year, primarily due to a decline in smart meter sales volumes. In the transmission and distribution systems business, net sales decreased and operating results worsened year-on-year, despite strong performance resulted from a rise in capital investment demand due to the absence of large-scale orders from the industrial field that were recorded in the previous equivalent period. In the power supply systems business, net sales decreased year-on-year following lower overseas demand in switchgear and controlgear operations. Operating results improved year-on-year due to the benefits of cost reduction efforts. In Energy Solutions, the ED&C components business achieved the highest growth.
Net sales and operating results improved significantly year-on-year as a result of strong demand seen overseas and from machine tool and other machinery manufacturers. In Industry Solutions, net sales were JPY 53.1 billion, up JPY 6.7 billion year-on-year. Operating loss was JPY 2.8 billion, deterioration of JPY 300 million year-on-year. In the factory automation business, net sales and operating results improved year-on-year due to strong conditions in Japan and China, centered on markets for inverters, factory automation components, and industrial motors. In the environmental and social solutions business, net sales improved year-on-year as a result of higher demand in radiation-related equipment and system and environment-related operations. Operating results worsened following a decrease in overseas sales of electrical equipment for railcars.
In the equipment construction business, net sales decreased and operating results worsened year-on-year as a rebound from large-scale orders recorded in the previous equivalent period offset the benefits of strong performance in plant and air conditioning equipment operations. In the IT solutions business, net sales and operating results improved year-on-year due to an increase in orders from the public sector and the academic sector. Moving on to Power and New Energy. Net sales were JPY 17 billion, up JPY 3 billion year-on-year. Operating income was JPY 800 million, down JPY 200 million year-on-year. Net sales were up year-on-year thanks to increase in large-scale orders for solar power generation systems, operating results worsened year-on-year as a result of a less favorable sales mix.
In Electronic Devices, net sales were JPY 30.5 billion, up JPY 2 billion year-on-year. Operating income was JPY 2.8 billion, up JPY 1.2 billion year-on-year. In the semiconductors business, net sales and operating results improved year-on-year following a rise in demand for semiconductors for the industrial field. In the magnetic disks business, net sales and operating results decreased year-on-year due to a decline in demand. Sales of magnetic disks decreased JPY 1.6 billion and sales of semiconductors increased JPY 3.6 billion. That means semiconductors drove the growth of this segment. In Food and Beverage Distribution, net sales were JPY 25.8 billion, almost flat year-on-year. Operating income was JPY 1.2 billion, down JPY 600 million year-on-year.
In the vending machines business, net sales decreased and operating results worsened year-on-year as a result of the impacts of a temporary decline in investment stemming from the revision of the expansion plans of customers in the Chinese market, which outweighed the benefits of the brisk demand seen in the domestic market. In Store Distribution, net sales increased year-on-year due to a rise in demand for store equipment for convenience stores, operating results worsened year-on-year as a result of a less favorable sales mix. Next, I'll discuss net sales by Japan and overseas area. Net sales in Japan increased JPY 10.7 billion, overseas sales decreased JPY 2.3 billion. As for breakdown of JPY 2.3 billion, net sales in Asia decreased JPY 3.2 billion due to sales decrease in electrical equipment for railcars and thermal power.
It was mainly because of absence of large-scale orders recorded in the previous equivalent period. In China, net sales decreased JPY 600 million year-on-year. Sales increased considerably in ED&C components, factory automation, and power semiconductors supported by increased investment in automation in China. On the other hand, sales decreased in magnetic disks due to changes in sales channels and sales decreased in vending machines in China. In total, net sales in China decreased JPY 600 million. The impact of changes in sales channels for magnetic disks was slightly less than JPY 3 billion. Net sales in China increased slightly less than JPY 3 billion in real terms year-on-year due to strong performance, mainly of semiconductors stemming from an increase in investment in automation made locally in China. In Europe, net sales were up JPY 300 million year-on-year.
In Americas, net sales were up JPY 1.3 billion year-on-year due to sales increase in electrical equipment for railcars and geothermal power. Let me move on to consolidated balance sheet next. Total assets stood at JPY 864.7 billion at the end of the first quarter of fiscal year 2017, down JPY 22 billion quarter-on-quarter. Total current assets decreased JPY 29.2 billion. It is because progress of collection of notes and account receivables, trade receivables for sales for the last fiscal year counteracted the rise in inventories for future sales. Total long-term assets increased JPY 7.1 billion mainly due to an increase stemming from valuation difference on available for sale securities against the backdrop of high stock prices seen in this fiscal year. As for liabilities, other liabilities decreased significantly due to payment of income taxes and bonus. There is a characteristic of this year's trend.
That is to say, payment of income taxes and local taxes increased slightly more than JPY 20 billion due to payment of taxes associated with gain on sales of shares in Fujitsu Limited we sold in the last fiscal year. Other liabilities decreased significantly because of an increase in payment of taxes. As a result, interest-bearing debts increased. Net interest-bearing debts came to JPY 147 billion, up JPY 37.7 billion year-on-year. Net debt equity ratio was 0.5 times. As for net assets, shareholders' equity or total net assets net of non-controlling interest was up mainly due to an increase in valuation difference on available for sale securities stemming from increase in market value of investment securities. As a result, equity ratio was 34.4%, up 1.6 percentage points year-on-year. So far, I talked about financial results for the first quarter.
Next, I'll discuss consolidated financial results forecast for the first half. We decided to raise forecast for the first half out of consideration for current conditions. In the first quarter, both sales and income for semiconductors, ED&C components, and factory automation exceeded forecast significantly due to increased demand. On the other hand, results of vending machines in China were slightly below forecast due to delay in the expansion plans of customers. By incorporating these factors, we made an upwards revision for the first half. Net sales forecast was revised up by JPY 1.1 billion from the previous forecast to JPY 370 billion. Operating income forecast was revised up by JPY 900 million to JPY 7 billion. JPY 7 billion is a record high first half operating income. Assumed exchange rate for the first half is kept unchanged. Exchange rate is not included in the factors for the upward revision.
Forecast for each segment is revised, as shown on the table at the bottom. In Energy Solutions, both net sales and operating income forecast were revised upward, mainly due to an increased demand for ED&C components both in Japan and overseas. In Industry Solutions, both net sales and operating loss forecast were revised upward due to an increase in factory automation and process automation against the backdrop of increased demand for capital expenditures both in Japan and overseas. In Power and New Energy, both net sales and operating income were revised downward, mainly due to sales decrease in service business. In Electronic Devices, both net sales and operating income were revised significantly upward by factoring in a rise in demand for semiconductors for the industrial field. In Food and Beverage Distribution, we made a downward revision while incorporating the delay in expansion plans of vending machine customers in China.
Let me move on to year-over-year comparison for the first half after upward revision. Net sales are forecasted to be JPY 370 billion, up JPY 18.4 billion year-over-year. Operating income is forecasted to be up JPY 1.1 billion. In Energy Solutions, net sales are expected to be down year-over-year due to the absence of large-scale orders for transmission and distribution systems that were recorded in the previous equivalent period. However, operating income will be up mainly due to an increase in income of ED&C components. In Industry Solutions, both sales and income will be up due to strong performance of factory automation and process automation. In Power and New Energy, net sales will be up because of an increase in large-scale orders for thermal power generation plants and others.
On the other hand, operating income will be down year-over-year due to downward revision for service business and a change in mix of orders from the previous equivalent period. In Electronic Devices, both sales and income will be up due to a rise in demand for power semiconductors for the industrial field. In Food and Beverage Distribution, net sales will be up due to a year-over-year growth of store distribution in the first half, despite the delay in expansion plans of vending machine customers in China. However, operating income will be down due to a less favorable sales mix. Next, I'll discuss full-year forecast. We decided to keep consolidated full-year forecast unchanged but revised segment forecast by reflecting revised forecast for the first half. Therefore, there is no change to forecast as a whole.
Forecasts for semiconductors were revised upward as we expect current good performance will be maintained in the second half. In Food and Beverage Distribution, we made a downward revision by factoring in revised plans for showcases in store distribution, in addition to the delay in expansion plans of vending machine customers in China. In Energy Solutions, Industry Solutions, and Power and New Energy, revisions made for the first half were reflected in full-year forecast. We would like to closely examine full-year forecast in light of market trends after the first half is over. This time, we decided to keep full-year forecast unchanged. Lastly, I will talk about full-year forecast for fiscal year 2017 in comparison with results for fiscal year 2016. We didn't revise consolidated forecast. Year-over-year change is the same.
By segment, in Electronic Devices, net sales are expected to be down year-over-year. The decrease includes year-over-year sales decrease of JPY 5.3 billion in magnetic disks. That means net sales of semiconductors will increase year-over-year. In revised forecast, we factored in all possible risks assumed at present, and we recognize these are minimum forecast. That concludes my presentation.