I would like to start the performance briefing of third quarter FY March 2020 of TDK. I would like to introduce you today's participants. Senior Vice President, Mr. Tetsuji Yamanishi. Senior Vice President, Mr. Noboru Saito. Corporate Officer, Mr. Shigeki Sato. Corporate Officer, Mr. Fumio Sashida. These are the four people. In terms of the outline of the third quarter of the consolidated results and consolidated full year projection, Mr. Yamanishi, Senior Vice President, will give a presentation.
Hello, ladies and gentlemen. My name is Tetsuji Yamanishi. Thank you very much for attending a performance briefing of the third quarter FY March 2020. From my side, I would like to talk about the outline of our consolidated results.
In terms of the highlight of our earnings, from the second quarter, the U.S.-China trade frictions have become serious with major repercussions on the global economy. This third quarter, the world economy, including China, is uncertain. In terms of the major markets that we do our business in, there has not been a major change in the demand environment. The environment continues to be tough for the third quarter year-over-year. Although of that kind of situation, we have been able to see both increases in sales and profit year-over-year. In terms of the sales of the third quarter, year-over-year, it increased by 1.4%. In terms of the operating income, year-over-year, it grew by 23.2%, a major increase. On nine-month cumulative basis, sales declined against the previous year. However, operating income, profit before tax, and profit after tax has been a record high.
In terms of operating income on a nine-month basis, we have been able to exceed JPY 100 billion for the first time in our history. In terms of the demand trend, overall, the same trend is continuing as the previous quarter. In the ICT markets, the 5G demand has started to ramp up. For 5G smartphones and for base stations, we have started to see a sales increase for rechargeable batteries, high-frequency components, MLCC, and inductors. These products have been contributing greatly to our increase of the earnings. Specifically, for rechargeable batteries, we have been leveraging a broad customer base. In the previous second quarter, even after the peak season of the smartphones, we have been able to maintain a high level of earnings, and this has been driving our business.
In terms of the automotive industrial equipment market, the overall demand globally, including China, has been slow. The demand level is below our initial projections. Year-over-year, the sales have declined in this area. As a result, excluding the increased sales, increased profit of the high-frequency components and the other passive components business year-over-year, we saw a decline both in sales and profit. In the sensor application products, TMR sensors and MEMS sensor, which are strategic growth products, sales has grown in these products, but the conventional products such as temperature sensors and Hall sensors, due to the sales to the automotive industry has been slow, the overall earnings improvement is in delay. In the short term, we are assuming that we cannot see a rapid recovery of the global economy.
In terms of the DX advancement, the so-called digital transformation, that can be represented by the 5G, ramp up the 5G. In terms of the acceleration of the response to the energy, so this is called energy transformation. These trends are going to advance further. Against this backdrop, we should always be ahead of the curve to capture market needs, and we will continue to prepare to grasp the growth opportunity for us in the future. Going to our performance outline. Against the dollar and against the euro, the yen has been strong. Due to this situation, the sales has been impacted negatively by JPY 14.5 billion. The operating profit has been declining by JPY 1.5 billion. In terms of sales, JPY 355.6 billion, this has been a 1.4% of increase. Operating income was JPY 40.4 billion year-over-year. That has been a 23.2%, a substantial increase.
We have been able to maintain increase both in sales and profit. The profit before tax is JPY 41.2 billion. Net profit is JPY 29.5 billion. EPS is JPY 233.35. In terms of the sensitivity against the currency, it is the same as before. Operating income, in terms of the relationship between JPY to the dollar, that will be the JPY 1.2 billion impact for the year. In terms of the EUR, it will be an impact of EUR 0.2 billion for the year. Let's go to the by segment status update. From this term, some of the products in inductive devices has been reclassified as other passive components. In this third quarter. Compared to the previous years with inductive devices, the sales has gone down by JPY 2.3 billion. Operating income has declined by JPY 0.4 billion. The passive components sales was JPY 98.3 billion.
This has been a year-over-year decline of 7.9%. Operating income was JPY 10.6 billion, year-over-year, a 27.9% of decline. Operating margin is 10.8%. If you look at the market condition that impacts the passive components, automotive and industrial equipment market, the demand has been stagnant. The Europe and U.S. major distributor is conducting an inventory adjustment, and that has been impacting business. We have seen a ramp up of 5G in China, and there has been more active business trend in the 5G related products. For ceramic capacitors, the automotive demand has been slow. Even so, our sales to the automotive business has been increasing steadily. In the ICT business overall, it has been flat. That said, we are seeing an increase of sales to the 5G base stations. However, the sales to the distributors has gone down substantially.
That has been a 12.6% decline of sales overall. Because of the decline in sales, the operating income has declined as well. We have been able to increase the product mix of sales of the high added value products, and we have seen ASP increase. The profitability is still at a high level. For the aluminum electrolytic and film capacitors, same as last quarter, the automotive and for the renewable energy related industrial equipment, for these areas, the sales has gone down. We're seeing a decline both in sales and profit. For inductive devices, we have seen the increase for 5G related products. Sales for the ICT market has grown. However, for the automotive industrial equipment, sales has been at a lower level. Overall, we have seen the decline both sales and profit.
For high frequency components, with the increase of 5G demand for the 5G smartphones and the base stations, the sales has increased, and we have been able to see an increase both in sales and profit in this area. For piezoelectric material products and circuit protection products, because of the decline of the demand for automotive and the ICT market, sales has declined. In this area, we saw both a decline in sales and profit. Next, going to the sensor application products. Sales was JPY 20.3 billion year-over-year. This is a 3% increase of sales. Operating profit has been JPY 5.5 billion of loss, which is the same level as last year. The InvenSense related acquisition expenses has declined by JPY 0.2 billion against the previous year, and overall, it is JPY 1.4 billion.
Globally, in the automotive and the industrial equipment market, we have not started to see a recovery in the demand. The conventional sensors, such as temperature sensors and Hall sensors, the sales continuing from the previous quarter, it has been slow. From the previous year, the sales has gone down substantially and the profit has worsened, and this is putting a big drag on overall business. On the other hand, in terms of strategic products that we are expecting high growth, for the TMR sensors for the automotive market, there are more volumes because it has been taking up new applications, and because of this, the sales has increased steadily. With smartphones, we are seeing an increase with the new models, and this has been greatly contributing to our sales expansion.
For the MEMS sensor, for the motion sensors, at a new client, the sales has been growing steadily. For the MEMS microphone, we are increasing sales for IoT and smartphones. Because of the unfavorable macroeconomic situation, the overall earnings is stalling. The improvement of the earnings is delayed. Structurally, we think we have been able to have a foundation to improve our earnings.
Next, magnetic application products business. The sales was JPY 57.9 billion, -12.8% from year-on-year. Operating income was JPY 5.2 billion, -33.3% year-on-year, operating income margin was 9.0%. HDD suspensions business, when it comes to the demand trend, has dramatically changed from the year earlier. First of all, for the 2.5-inch HDD for the consumer PCs, the recording density is going up. On the other hand, the volume has declined for the HDD head for the PC. The demand has been dramatically declined. On the other hand, the HDD demand for the data center has recovered. We expect about the HDD head for the nearline has gradually recovered and is increasing. HDD and recording the density of the nearline HDD has been phased up.
When it comes to HDD head, now as an entire segment, it has grown by 6% in terms of the sales volumes. On the other hand, about the part of the HDD assembly products and discontinued, that's why an entire segment has declined by 40% of the sales year-on-year, and the total of HDD have declined in 15% as a whole. When it comes to HDD suspensions, the sales have almost flat in terms of the volume and the value of the sales. On the other hand, application product of the suspensions have been declined in the sales for the ICT markets, that's why that the entire suspension business have dropped in sales by 6% year-on-year.
Result of that, the HDD head and suspensions and the entire operating income was due to the decline in top line and the profits for the suspension application products and also, as well as the HDD head, the decline in top line and profits, and also the lowering of the average selling price, and due to the switch to the product mix and in the entire segments have declined in profits. When it comes to magnets, we drew from the HDD magnets, and now that the business and that's industrial equipment for the machine tools and the industrial robotics and automotive markets have been slow. That's why the sales have dropped by 14% year-on-year. Operating incomes, they have been supported by the effects of our improvements of productivity, and we could maintain the same level of loss from last year.
Next, let me talk about the energy application products. The sales was JPY 161.2 billion. Operating income was JPY 40.5 billion, 10.9% increase and 64.6% of dramatic increase of the income. Operating income margin was 25.1%, as we have observed the big improvements in profitability. When it comes to the markets, now sales for the smartphone in China have pushed up by the favorable effects of the 5G network launch. Also, we have the very good business for the major customers in the other regions, and pushed up the whole of the sales for the smartphone business have substantially increased and booming. Also for the sales for the tablet and the notebook have steadily increased. On top of that, the mini cell for the wearable devices like wireless and also have steadily expanded. That now we have a 15% of sales increase year-on-year.
On top of this increasing in the top line, we have the very favorable switch of the product mix and expansion of volumes have contributed to that improvement of the productivity and if the push that's also for the sales. We can expect the further improvements of the productivity. This is the reason why we've expanded that sales and profits. When it comes to the parts supply for the industry equipment, still it's adversely affected by the slowdown in the economy now, we experience and recognize it, both in decline in both the sales and the profits. Let me talk about the quarterly results by segment from the Q2- Q3 for both the sales and the operating income.
First of all, for passive component segment, the sales have declined by JPY 3.6 billion, 3.5% minus from the previous quarter, from the Q2- Q3. When it comes to ceramic capacitors, although the sales have increased for the 5G base stations, on the other hand, our sales to the distributors have dropped, and the entire sales have gone into the declining trend. Eventually, we have experienced that declining sales. When it comes to aluminum film capacitors, although we have a slight increase in the business of renewable energy, the whole of the business for the industrial equipments have declined in sales and also declined another in the market like automotive, so that the capacitor business as a whole, we experienced about JPY 2.3 billion minus 5.8% decline on the quarter Q-on-Q basis. For the inductive devices, sales have declined by JPY 900 million, 2.5% decline from the previous quarter.
Although the sales for the 5G and the handset devices have increased, but in ICT as a whole, it's almost flat. The sales for the automotive markets have also been flat from the Q2. On the other hand, for the business and the sales for the industrial equipments have been very slow and poor. That's why in the whole of the entire segment experienced that declining the sales. When it comes to other passive components, the sales have declined by JPY 300 million, 1.1%, a slight decline. High frequency components have increased the sales for the 5G handset devices as well as the base stations. Now, although again, the slowdown in industrial equipments and now in the automotive, the sales now try to make up for the decline in business for piezoelectric components and the circuit protection products.
The operating income for the passive components have declined by JPY 800 million, 0% minus from the previous quarter. ceramic capacitors and aluminum film capacitor and inductive device. It had the decline in the profits due to that decline in top line. high-frequency products, it had been pushed up by the top line and the profit due to that increase of productivity. The piezoelectric components and the circuit protection products, it have been absorbed that kind of decline trend by the cost reductions. sensor application products, sales have declined by JPY 500 million and 2.4% from the previous quarter. The temperature and the pressure sensor, temperature sensor still had adversely affected by the slow market in automotive and have been declining in the sales.
When it comes to magnetic sensors, now it seems like the Hall sensor have just a little bit of comeback. On the other hand, TMR sensor have peaked out its sales in the Q2 for that ICT market and almost flat. When it comes to MEMS sensor, now and the business with the microphone is almost flat. On the other hand, the motion sensor have suffered from some declining demand in the smartphone manufacturers in the China, particularly in SMEs in China. That's why it's dropped a little bit from Q2. Operating income was about almost the same level of the loss of JPY 5.5 billion this quarter. The temperature and the pressure sensor have decreased in sales and profit a little bit. Magnetic sensor and the Hall sensor have also have a loss, but the margin levels have been shrunken from the Q2.
MEMS sensor still have a loss. Now, the margin levels have been just a little bit improved due to the product mix and the cost reduction. Next, let me talk about magnetic application product segment. Sales have increased by JPY 3.4 billion, 6.2% from the Q-on-Q basis from the previous quarter. At HDD head sales, when you look at the sales and the sales index have improved from 89- 92 in the Q3, it means about 3% increase. The sales of the HDD assembly also have increased by 5% from the previous quarter, Q2. When it comes to HDD suspensions, the hard disk drive suspension with nearline sales have substantially boomed. Suspension application products have also declined, but now, it have been more than offset that. All in all, we have the 14% of increase.
Sales of magnet have declined by 3% quarter-over-quarter. Operating income for the magnetic application products have increased by JPY 1.7 billion, 48.6% from the previous quarter. HDD head and Suspensions, for those have an increase of 20% profits on a quarter-over-quarter basis. For the magnetic products, we have just shrink a little bit of the margin of a loss due to that cost reduction. When it comes to Energy Application Products segments, the sales have declined by JPY 12.5 billion, 7.2%, the minus from Q2. Secondly, batteries have also pushed up the sales for the 5G handset devices. When it comes to sales in North America and Korea, it have been only peaked out in the Q2, then slightly declined. It's almost the same as for that industrial power supplies.
When it comes to operating income, it was declined by JPY 2 billion- JPY 40.5 billion. This is due to mainly the poor business for the secondary battery. Next, let me talk about breakdown of operating income changes. JPY 7.6 billion, as that's the bottom line here. When you look at the changes, due to that declining, the change in the sales for the passive components, it have pushed down the profits. Now we have about the increase of profit for the secondary battery, and we have JPY 11.2 billion of increase of profits. When it comes JPY 4.3 billion, it's been pushed down by that declining and reduction of sales prices, but that can be then offset by the improvements of productivity of the passive components and in other rationalizations and the effect of JPY 4.1 billion.
The other one is that JPY 200 million for that restructuring efforts in InvenSense and the other M&A and the cost of reduced by JPY 200 million, when including the JPY 2.3 billion of increase of SG&A and JPY 1.5 billion of the minus effects of that Forex. In total, we have JPY 7.6 billion. Let me talk about the overview of the consolidated results through Q3 of FY March 2020, the nine-month basis. Sales was JPY 1,062.7 billion, 0.9% of decline. Operating income was JPY 109.2 billion, JPY 14.3 billion, 15.1% increase. The income before the tax was JPY 109.8 billion. Net income was JPY 74.4 billion, 7.2% of increase. The sales, operating income, and for all this income before the tax and all, and post-tax was all the record all-time high.
Let me talk about the full-year projection for the FY March 2020. There's not any changes made from the forecast we previously made in October. End of October, the last time, we have widely revised only for the net sales due to this major change of the demand in the market. After that, now, the launch of that full launch of the 5G and projects, also recovery of the semiconductor-related business. On the other hand, we have the negative impact by the trade war between the U.S. and China, and have adversely affect the ICT markets. Now, when you look at any uncertain and slow the demand in the automotive, industrial equipments, and now we have experience about the inventory adjustment for that major distributors in U.S. Taking all this into considerations, we did not change any of the forecast.
Operating income, the income before tax, and net income, there's not any change in the forecast. When it comes to foreign exchange rate for the Q4, as we have announced last time, JPY 108 to the USD, JPY 120 to EUR. There's not any change. When it comes to dividends, it's JPY 90 for the second half and JPY 180 for the full-year basis. Although there is uncertainty in the global economy, we would like to do utmost to achieve our target profits. Carefully watching about the changing of the demand in the economy. We like to just grab the opportunity for this growth and steadily implement our actions so that we can have the further growth after the year and the next fiscal year onwards. That's all my presentation.
Thank you very much.