We will now like to start the financial results briefing for FY March 2022 for TDK. If I may take a moment to introduce the participants from our side. We have Saito Noboru, and also we have Yamanishi Tetsuji, Executive Vice President, Executive Officer, Sashida Fumio, and also Executive Officer, Ikushima Taro, and Executive Officer, Tsutsui Takao. They are the members from TDK side. Thank you again for your time and contributions. This is Yamanishi Tetsuji. I do appreciate your precious time despite your busy schedule to attend our full year financial performance briefing for the fiscal year March 2022. I'm so happy to have so many of you. If I may like to go through the financial key points and for the consolidated numbers.
During the, you know, period under review, the re-spread of the new coronavirus infection and the concerns about the political conflicts, including tensions between the U.S. and China, resulted in the prolonged supply chain restrictions on parts procurement and the sluggish growth, automobiles and smartphones and others. The economic and the social activities, they started to become normalized. Production activities continued to recover, resulting in a firm demand for electronics, which further resulted in the growth in revenue in all the segments. Passive Components expanded its sales, and the Sensors became profitable. We enjoyed really good balance overall. Net sales was up 28.6% year-on-year, and operating income was up 49.4% year-on-year, reaching record highs in both net sales and operating income.
In the automotive market, although the production volume remained at the same level as the previous year due to the supply chain constraints in parts procurement, the demand remained strong due to an increased parts installed and the customer's efforts to secure parts inventories as a result of the further development of the xEVs and the accelerated electrification, such as ADAS, and the sales of Passive Components and the sensors expanded. In the ICT market, demand for the you know, laptops, PCs, and the tablets remained strong in the period under review, while demand for the data centers recovered and the production of HDDs for servers remained strong. Sales of personal computers, tablets, and HDDs increased as a result of strong production of those products. HDDs for servers and recovery in demand for data centers.
In the smartphone market, production volume was lower than the previous fiscal year due to the impact of the re-expansion of the new coronavirus infection, but sales of rechargeable batteries, sensors, and HDD has expanded. In the industry equipment market, CapEx remained strong, and the sales of products for semiconductors and other manufacturing facilities, renewable energy, and other applications increased. We are so happy given these indications, because we're able to move toward and expand the sales of passive components and the power supplies for industrial equipment, while rechargeable batteries, including household use ESS cells of medium-sized batteries grew.
Net income increased significantly in the fourth quarter, now due to the approximately JPY 60 billion gain on valuation of investment securities, and net income on an actual basis, actual business basis, excluding valuation gain, also increased from the previously announced full year forecast. We have revised up our year-end dividend forecast by JPY nine per share in light of the improved earnings per share. Next, I will explain the highlights of the performance. Due to the dollar and other FX, the changes, net sales was up JPY 125.7 billion, and operating income was up about JPY 6.9 billion. Net sales was JPY 1,902.1 billion, up JPY 423.1 billion or 28.6% year-on-year.
Operating income was JPY 166.7 billion, up JPY 55.1 billion or 49.4% year-on-year. As has been already announced on April twenty-seventh, we put about JPY 60 billion unrealized value from the investment securities into non-operating income. With this done, income before income taxes and the net income grew dramatically. The numbers are JPY 234.2 billion and JPY 177.5 billion, respectively. TDK was able to renew those profit numbers. Earnings per share became JPY 468.36. The FX sensitivity has not changed much for operating income in the U.S. dollars and the Japanese yen, which the 1 yen fluctuation, it was about JPY 1.2 billion, the same from the previous year.
In the yen and euro, the impact was estimated to be about JPY 200 million. Next, I'll go through the highlights for the full year by segment. Passive Components net sales was JPY 505.2 billion, up 24.1% year-on-year. The automotive production units leveled off from the previous year, but due to the increased number of parts used, automotive sales continued firm in its growth. In the industrial equipment, the demand for the renewable energy as well as the manufacturing facilities turned out to be firm. The demand for the ICT market segment had a slight increase due to the declining number of the smartphone products. Operating income was JPY 77.7 billion, up about 1.9x year-on-year. Operating margin became 15.4%, showing a dramatic growth in profitability.
By business segment, excluding our high-frequency components in the segments where our automotive ratio is high, particularly you know the capacitors and the inductive devices made great contributions to the improved profitability for the entire segment as a whole. Next, I will cover now sensor and application product segment. Net sales was a record high of JPY 130.8 billion, or up 60.8% year-on-year. Operating income side, though we had one time spend of JPY 2 billion in the fourth quarter, for the full year basis, we achieved a profit of JPY 2.7 billion on the full year basis. Temperature and the pressure and the sensors grew for the automotive market and for the home appliances, Hall sensors, and also grew for the automotive market. With this, earnings improved quite significantly.
TMR sensors enjoyed a great growth in sales and profit, thanks to the increased demand in the ICT market, as well as a new adoption of the products. As for the MEMS sensors, the expanded customer bases and the applications, they benefited, our motion sensors and the MEMS microphone business helped, us to improve our earnings. We're able to reduce the loss number quite dramatically. Next, I will touch upon magnetic application product segment. Net sales was JPY 248.4 billion, or 24.7% increase year-over-year. Operating income was JPY 4.6 billion, becoming profitable from the last year's loss. HDD heads. Since the beginning of the fiscal year, the demand made a good recovery with the servers for data centers. Nearline HDDs had a robust sales.
Excluding a one-time spend, this business grew in profit. 33% in volume, giving us good profit opportunities. HDD suspension, nearline suspension, actually, sales turned out to be quite firm. We enjoyed an increase in the revenue, excluding the one-time spend. Actually, on the substantial basis, we became profitable. As for the magnets for the automotive markets, actually turned out to be quite strong, so we are able to actually increase the revenue, but due to the rising cost of the raw materials, actually we are still having loss situations. Next, I'd like to talk about the energy and application sector. JPY 96.53 billion, operating profit JPY 123 billion. Year-on-year basis, actually 30.4% increase, 16.4% loss in terms of profit.
As for the rechargeable battery, the FX change and also the rising cost of the raw materials, which has been transferred into our price. Excluding that, smartphone actual growth, and actually on a year basis, actually declined, but ICT net sales actually stayed at relatively the slight increase, but rechargeable batteries and also in home appliances, particularly the energy storage, actually helped us to expand in sales opportunities. In the actual the substantial business, actually, we're able to now enjoy the 90% growth. As for operating income, for the ICT, actually, even though we are not able to increase the ideal numbers, but starting from the third quarter, and actually, we suffered from the high rise in the raw materials, pushing us pushing down the profit.
The JPY 15.4 billion as a royalty. All in all, we suffered a loss from the previous year. The power for the industrial equipment, actually semiconductor equipment and others, actually, there has been a strong demand for these sort of segments. We enjoyed both growth in revenue and the profit. Next, I'd like to move on to the operating profit, 51.1 billion yen. Analysis behind this number. The first on Passive Components. Sensors became profitable and are giving us good opportunities, and also HDD heads. The profit actually now they recovered. All in all, actually, even though we had some impact in this, the rechargeable batteries, and actually the JPY 85.9 billion, actually the benefit actually has been still with us.
We actually went ahead in streamlining our cost and the structure. We had the structural reform actually giving us the good opportunity for JPY 28.9 billion. Actually the JPY 64.5 billion increase. Major factor behind that is rechargeable batteries licensing fee, about JPY 15 billion increase, and also in the passive components sales initiatives actually they increased the sales cost and also, you know, how COVID-19 actually resulted in the quite tough situation, some distribution costs and also then power and pack costs actually went up.
Our structural reform in the fourth quarter, of course, a one-time spend, actually JPY 17.6 billion versus we had done JPY 9.6 billion for the previous fiscal year. With cheaper yen, actually a JPY 6.9 billion improvement in the profit. Total, actually, the improvement was JPY 51.1 billion. Next, I will go through the quarter three and quarter four segmentations and the changes. Also now I'd like to talk about operating income improvements and also the decline. First, in Passive Components. Net sales starting from the third quarter, actually JPY 2.3 billion, 1.8% decline. Operating income, JPY 15.7 billion, 30.6% decline. As for the net sales for automotive, naturally business was quite firm.
In ICT market, smartphones and sales actually went down, and also the high-frequency components suddenly declined. Operating income in the fourth quarter, we had about JPY 2.1 billion, one-time cost. You know, due to the Chinese New Year, we suffered these declines. Sensor and application end products, the revenue of JPY 1 billion, 2.8% decline. Operating income fourth quarter, we had about JPY 2 billion, the one-time cost. Excluding that, actually, we suffered from the decline of JPY 2 billion. The temperature and pressure sensors, actually, thanks to the good businesses in the automobile market, we had a slight increase. We had the TMR sensor and smartphone business.
Particularly the major customers and the new products launch, actually they went down due to the seasonality. Also motion sensors, starting from the third quarter, actually leveled off. Operating income, TMR sensor actually went down, resulted in the decline in the profit. MEMS sensor, well, due to the increased R&D costs, the slight decline in profit and also the energy costs went up and resulted in the decline in the profit. Next, our magnetic application. The JPY 5.8 billion in revenue, 8.7% decline. Operating income, fourth quarter, we had one-time expense of about JPY 2.8 billion. Excluding that, actually, we suffered from the JPY 3.4 billion.
Revenue, actually, data center demand went down and HDD heads and the sales volume actually now for nearline and also now for personal computers again went down about 19%. HDD assembly sales volume actually that went down about 70%. We suffered from this major declines. HDD suspensions actually slight decline. As for the magnetic business, for automotive market, we had a firm business, giving us a slight increase. Operating income, HDD head, we still declined the volume and also the Chinese New Year. Again, our business had been, you know, off. Now giving us a decline in the numbers. Suspension actually do have some slight decline. Magnetic businesses are actually now one-time cost, including that still we suffered from the more, the less.
Energy application segment, next. The net sales, JPY 17.9 billion, 7% increase. Operating income, JPY 12.5 billion, 32.1% decline. As for the rechargeable battery and the smartphone production volume went down. Because of that, well, we suffered somewhat, but again, on the FX situations and also they were able to actually transfer the surged prices into the prices. So that resulted in the surplus. Industrial equipment and actually parts supplied, actually, now we had a slight increase. As for the operating income, rechargeable batteries and actually raw materials, actually, in the fourth quarter, the materials cost went up further and pushing our you know profit. Industrial equipment and actually, due to the expanded production, actually we're able to actually increase the number to some extent.
I went through the highlights and on a full year basis. Thank you. As of April 1, in addition, I became president. This is Saito Noboru. I would like to thank you for your precious time and participation. Here now, if I may, I would like to explain our full year and our forecast for the fiscal year ending 31st March 2023, as well as the progress of our medium-term plan. First of all, I would like to explain our consolidated earnings and dividend forecast for the fiscal year March 2023 and the market background on which they are based.
In the fiscal year ended March 2022, the global economic growth rate was 6.1% due to the recovery from the corona pandemic, and the growth rate and forecast for the fiscal year ending March 2023 was revised from 4.4% down to 3.6% in April. Although the production activity is recovering from the pandemic and the economy is accelerating its normalization, we believe that there are still concerns about and further macroeconomic downside risks in the future due to the risk of higher-than-expected interest rates and the situation in Russia and Ukraine and the lockdown caused by the respread of the corona infections in some regions.
As for the production volume of each major set of products, the production volume of automobiles is expected to increase from the previous year, and the production volume of smartphones is expected to remain unchanged. The production volume of PCs and tablets, which have been rather at high level but then are going to decrease from the previous year. Furthermore, we expect the impact of the soaring energy and the materials prices due to the heightened geopolitical risks to continue. Based on the production volumes and then orders received for these major devices, we project full year net sales of JPY 2,200 billion. Operating income, JPY 185 billion. Income before income taxes of JPY 190 billion.
Net income of JPY 145 billion. The assumed exchange rate are 120 yen to the U.S. dollar and 130 yen to the euro. Based on the increase in earnings per share, we expect to increase the annual dividend from 78 yen per share after a three for one split in the fiscal year, the March 2022 to 106 yen per share in fiscal year, March 2023. Capital expenditure expected to be JPY 300 billion, depreciation and amortization, JPY 200 billion, and R&D expenses JPY 190 billion. As we have already announced, we will voluntarily now adopt the International Financial Reporting Standards, IFRS, for the fiscal year, March 2022, instead of conventional U.S. GAAP.
The full year now forecast for the fiscal year March 2023, which we have just explained, is calculated based upon IFRS and the figures for the fiscal year ending March 2022, which will be used as a basis for comparison, are shown as reference for the values after being replaced by the IFRS standards. The JPY 6.2 billion gain on the valuation of investment securities recorded in the fiscal year ended on 31st March 2022, is included in the non-operating income under U.S. GAAP, but under IFRS, it is included in other comprehensive income on the balance sheet, not in operating income. Next, I will explain the demand and production volumes for major devices related to our company.
We assume that the automobile markets, including commercial vehicles, will reach 83 million units in the fiscal year March 2023, up 5% from the previous year. Despite this, investment in EVs and eco-friendly vehicles, which have a large impact on our business performance, is accelerating, and we have assumed a 43% increase in xEV in the markets to 14.4 million units. I believe that this session is going to continue for some time to come. On the other hand, smartphones, which represent the ICT market, are expected to reach 1.39 billion units, the same level as the previous year, and the number of 5G smartphones is expected to continue to expand, reaching 663 million units.
In addition, while the overall HDD market is shrinking, we expect nearline HDDs for data centers to grow by percent to 77 million units. As for PCs and tablets, which had been performing well in the corona pandemic due to the remote work and study stays at home, we expect them to remain negative year-on-year. In general, we believe it is necessary to monitor component demand trends while keeping a close eye on the final sales trends as the macroeconomic environment remain uncertain.
Next, let me talk about the image of changes in the sales by segments in March 2023. I start with that Passive Components segment and a business where the automotive markets will exceed the growth rates of that, the automotive vehicle production units grows itself. We expect that the increase in the revenues in the industrial equipment markets and, Passive Components segment as a whole, we expect 7%-10% of the growth of revenues year-on-year. We also expect that the further expansion of the demand in the mid and long term. We would like to make that aggressive investments so that we can capture this opportunity and make investments and developments and the production capability.
As for the sensor application segments and magnetic sensor, mainly for the GMR sensor for the ICT use or that MEMS microphone have expanded as options, and also that temperature and the pressure sensor for the whole sensor will be an increase and based on the further electrification to the vehicles. In all, we expect a 13%-16% revenue growth. For the magnetic application product segments, although that production units of HDD have been struggling, now investments in the data center is still active, and we expect some steady demand for that nearline HDD. In total, the volumes of HDDs will increase, and we expect about the revenue growth of 15%-18%. We also expect that the magnet business will increase its revenues and with that expansion xEV business.
As for the energy application product segments, although the production units of smartphone will be flat, we expect that an increase of the business for the medium size of the batteries and for the ESS or the e-bike usage and the standard power supply business will increase with that. The increased demand for semiconductor manufacturing equipment, so infrastructure, and we expect all in all 17%-20% revenue growth. Next, let me talk about that, about the Value Creation 2023. That's our midterm plan. Let me talk about the progress of this midterm plan. As we have explained last year, we would like to achieve that improvements of the corporate values and by making contribution to the EX and the DX, that is the social trend.
This is our major objective. The KPI, or I guess, the sales or the profits or the capital allocation plan is shown here on this slide. In the next page's slide, I would like to talk about the points of the progress of our mid-term plan. First of all, for the progress of the growth strategy and for the Passive Components and both for the revenue and the profitability, it will exceeded our, the objective so far. The sensor business have it now making recover its profitability and faster than expected, and we can achieve that. Profitable business in the full year basis. For the power cell business of the secondary battery have now been on plan. Also in HDD head business have recovered its profitability, and we have launched the MAMR, that is the next generation technology.
When it comes to capital allocations, initially, we making investments of 60% of allocation out of JPY 750 billion of the CapEx in the next three years to the energy application segment. We have changed the strategy due to the change of the business strategy and the market. Now we have to reduce it to that allocation to the energy application from 60%-40%. On the other hand, we have boosted our investments from the passive components from 20%-30%. We try to just capture that opportunity for the growth for the next generation head or the TMR sensor. That's why we have dramatically changed the allocation plan. When it comes to the finance and the cash flow, now we have invested JPY 100 billion for the stable procurement for the battery-related materials.
This is implemented as part of the strategy. Result of that, it was getting difficult to achieve that about in the positive free cash flow after return to the shareholders in this mid-term plan. We needed this investment from the mid and the long-term perspectives, and this is the needed upfront investment for the sustainable competitive power. On the other hand, cost increase of materials and transportation, it vastly affected the finance, but now we try to the utmost to minimize the impact by passing the cost onto the price or the improvement of productivity. Now we're also trying to focus on that, making the unprofitable business to be and improve its profitability. Next, would you please go to the right-hand side of the slide. This is about our efforts to improve the social value from the perspective of ESG.
I start with the E, environment. For the first time, in November 2021, we had issued JPY 40 billion worth of sustainability-linked bond. Shown here on the slide. In order to attain to the objective by the FY 2025 and in the lower energy and renewable energy, will be both of the pillars for making that reduction of CO2 emission. Next, let me talk about S, society. Starting from March 2018, we have opened and started operations and global HR head office in Munich in Germany, including succession planning and diversity activities. We try to enhance our female engagement projects for achieving the 15% ratio of the female managers. Last of all, let me talk about the G, governance. Now, we have laid out that the global common rule that we're.
Compliance by all the group companies. At the same time, we like to promote the empowerment and the transparency for the employees and the operations. We like to have about this autonomous and the distributed type of organization structure. We would like to achieve that’s the agile and the proper decision-making and the front line of the business in each region and the company. Next, let me talk about the key points of the future initiatives by segment. When it comes to the Passive Components business, about the 40% of business is based on the automotive market. In there, we experience about the dramatic change in the industry and in customer structure change, and we have to deal with it flexibly.
Although the production of the mobile is struggling, we're focusing on the EV and ADAS related products, and we'll try to keep expanding our sales and profits. At the same time, already we have announced in the media release, now we have decided to build a new factory for the MLCC. Let me explain about overview of this new plan and new factory building plan. This is the one. We have the new factory within the land of the Kitakami factory, which is one of the manufacturing base of MLCC. The construction will be completed in June 2024, and we will start the operation in September the same year. This is the new factory that cover end-to-end productions from the materials to the finished products and also into the conservations, so that energy conservations and CO2 reduction.
Mainly, this factory manufactures for the automotive related products. For example, that's the high voltage conversion units like the ADAS and EV. It will be just the product will be the smaller size it, and also the high performance, high reliable products will be manufactured in these plants. Combining both this new factory and then also the existing capacity enhancement plan, by the end of 2024, we will expand production capacity 190% compared to March 2021. Next, let me talk about sensor application segments. We could achieve that in making the business profitable last year. Now, in order to further achieve that mid-term business plan objectives, we would like to continue our expansion of a customer base and application base.
Now, temperature and pressure sensor and automotive Hall sensor, we'll expect a steady increase of the revenues and also for the magnetic sensor, mainly for the TMR, then this microphone. The application for the digital transformations will be the new areas to explore to expect the further expansion of the business and revenues. When it comes to the magnetic application product segments, although the production units of HDD have been declining, but still the investment and the data center is active. We expect that steady demand in nearline HDD and as an HDD head as a whole, the total production units will increase, and we expect that the incremental revenue. This year, we start the mass production of MAMR technology, that is next-generation head, and then also for.
We'd like to just expand the suspension application products to the areas other than HDD. Also, for the magnets, we like to make our utmost to improve the profitability with the improvement of the productivity. When it comes to energy application products, now we expect that, and still the smartphone production is flat, so that we would like to explore the new areas of the medium size of the batteries, like ESS and e-bike. With the joint venture with CATL, we like to make the growth and boast a balanced approach and the investments and the growth. We'd like to explain about more details about joint venture from Mr. Sashida. That's all my presentation. Thank you very much. Thank you. Okay, next. The joint ventures with CATL and energy application products business. I'm Sashida.
Thank you very much. I'm going to explain this joint venture. When it comes to that establishment of joint venture with CATL, we already announced April last year. Let me explain about the current progress of this joint venture operations and also our and future perspective. First of all, let me talk about the background of this and breaking into this market of medium-sized battery, as well as the background of this and business alliance with the CATL. We have so far focusing on, that's the small size of battery for the ICT, and we could achieve it. That's a very high growth. Now we expect that this and the ICT market, the demand for the small battery will decline.
On the other hand, about the large size, the battery for the EV or that is this medium-sized battery for the ESS and the e-bike will increase. On our end estimates, the medium size of the battery markets will become about 4x of the small size batteries in 2025. In order to be the winner and be successful in this rapidly growing markets, we need to take advantage of that technological and management resources in a timely manner. Time to market, time to volume. This is the key for the success. Our battery business have become the current size of the business in the past 20 years, starting from the ATL. The medium size battery markets will expand to the larger size.
That's the more higher demand than the small size of the battery market. That's in order to be winner in this rapidly changing, rapidly growing market, we need more the tremendous technological and also management resources. We already have started as a business this by the standalone operation, by the TDK, by ourselves alone. Now, in order to make that more efficiently and the faster growth in a very shorter period of time, and at the same time, the long-term procurement of materials or that's, and synergy for this development efforts, we have determined to have this business alliance with the CATL. We have the similar corporate culture with CATL, and also we have the experience and partially some joint development program in the past. That I think, we think that we expect that the synergy more speedily and faster.
At the same time, cross license agreement with the CATL, not only for the technological resources of the medium size of battery, but also we can take advantage of this cross license to the small size of the battery too. We think that this is the essential for and further growth of our business in the battery. Next, let me talk about the holding company and each joint venture and then the capital compositions of these companies. 27th last month, we have announced about the establishment of this new company. The company name is Xiamen Ampace Technology Limited. This is a holding company of the two joint ventures, so that we can have a more agile and the managements of the companies. Now, it's located in Xiamen, Fujian Province in China.
Now, Pack JV, now we have 70% of the stake, is now named Xiamen Ampack Technology Limited. The Cell JV, that now have a stake of 30%, is named Xiamen Ampcore Technology Limited. These two joint ventures are located in Xiamen, Fujian Province. Ampcore manufactures cell, and Ampack manufacture pack. Now when it comes to the contact to the customers, that will be within the scope of the responsibility of the Ampcore, the cell manufacturer. Next, let me talk about our strategic directions on a mid and mid-end and long-term basis with these joint ventures. Left to top part of the slide represents that's our assumptions of our the market size of that's the medium-size battery markets.
Now we expect that it will be about 100 GWh, but in 2030, the market size will be tripled from the current level. Based on this assumption that this rapidly growing market for the medium size of the battery. Now first of all, let me just explain about the image of that if we were the business going for business ourselves alone in March 2022, that's the medium-sized battery business will account for about 10% in March 2022. On a value basis, it will grow to be the size of JPY 90 billion. As for the long-term business objective, we'd like to have a market share of 10% or higher, and by 2030, we'd like to have on the capacity basis, we'd like to make the business on a par with the current ICT business.
If this is the case, our assumed sales of that medium-sized battery will be JPY 400 billion-JPY 500 billion. Based on this standalone business operation scenario, the most important advantage of this joint venture is, as mentioned earlier, we can have the synergy, having the complementing with each other. First of all, from the product side, we have a very good at the pouch type cell, and at the same time, CATL can give that about a prismatic and the cylindrical cell. We can combine them together so that we can cover the broader needs of the customers. In order to make the aggressive expansion of the market share, it will be available in this highly expanded markets.
When it comes to the technology, and not only for the technology, but also we can secure the resources, human resources. We can have this taking advantage of the other intellectual properties. When it comes to operations, we can expect the scale benefit for procurement of materials and manufacturing and scale benefit. Also, we can have the synergy of that joint manufacturing technology development. Based on these synergies, we expect to have the 1 / 1 and not two, but over two. This is what I like to realize. On a mid- and long-term basis, we like to have the top market share in the global market, that means the 30%-40%.
When it comes to that revenue reflected on our consolidated business performance, now that would be just, we believe, at the exact same level as based on a standalone business operation scenario. On the other hand, the profits, now we can expect the synergy so that we can have that higher profitability compared to the standalone business operation model scenario. When it comes to the investments, since we think that's about the proper and shared burden under the investments between the joint ventures, so that we can achieve the actual and proper growth and the balanced growth between investment and the growth. Just like this, we're going through the joint venture operations and proceeding with that medium-sized battery business, and we can expect to realize the further growth and the higher growth.
That's all my presentation. Thank you very much for your attention. Thank you.