It's on time. I'd like to start the performance briefing of TDK Corporation for the first half of fiscal year March 2020. Today's attendance from TDK Corporation is Shigenao Ishiguro, President and CEO. Tetsuji Yamanishi, Senior Vice President. Noboru Saito, Senior Vice President. Shigeki Sato, Corporate Officer and CEO of Electronic Components Business Company. Fumio Sashida, Corporate Officer and CEO, Energy Solutions Business Company. These are all the attendance from the TDK Corporation. First of all, I'd like to start from the performance briefing on the first half of fiscal year March 2020, from Mr. Tetsuji Yamanishi.
I'm Yamanishi. Today, thank you very much for joining us in this the business performance meeting for the first half of the fiscal year March 2020. Thank you very much. First, I'd like to present about that overview of our business performance in the first half.
These are the points and key points of the business performance, getting into the second quarter. The trade friction between the U.S. and China is getting intensified, and still we have the continuous slowdown of the global economy, and it will lead to the most serious impacts for the global economy. For our net sales of the first half was the decline by 2.1% year-on-year. On the other hand, when it comes to operating income, we have 10.6% of growth from the year earlier. The income before income tax and the net income, recognized record high performance. Both the quarter and same annual basis. When it comes to demand, we have been flat from the previous quarter.
The sales in the ICT markets, it had been very favorable and mainly for the smartphone markets and secondly, battery, and very favorable not only for the smartphone, but also wearable devices and tablet PC. We have expanded the business and also we have improved it substantially, enhanced the profit so that it's playing the leading role of a business. The high-frequency components have increased the sales for the 5G base stations and MEMS sensor, TMR sensor, and also have been going very well for the smartphone market. On the other hand, when we look at the automotive and industrial equipment market sales, they have been adversely affected by the slowdown of the demand, including in China. Now, the demand was lower than we had expected. Now we have a negative sales from the year earlier.
Consequently, except for the high-frequency components, all of the Passive Components, now we have a negative growth and the sales, also negative profits under the Passive Components as a whole. When it comes to Sensor Application Products, the conventional sensor like temperature sensor and the Hall sensor now, all the automotive market application have been struggling, all of the Sensor Application Products as a whole, we have the negative growth in both the sales and profits. We could not expect any, the pickup or the recovery of this global economy, we have a lot of uncertainty ahead. That's why we have to implement and speed up that implementing a lot of countermeasures based on the growth strategy.
We have announced this, RF360 Holdings Singapore, that's the joint venture with Qualcomm, that 49% of the stake will be sold according to the option and when exercised and executed the option August 30th, we have already received JPY 124.5 billion. September 16th, for this money will be spent for repay that loans and the debts. There was, we balanced for that M&A, for the InvenSense, we can enhancing our financial strength. Next, the corporate business overview. Net sales was JPY 707 billion. That was JPY 14.9 billion less, 2.1% from year earlier. Operating income was JPY 68.8 billion and JPY 6.6 billion, 10.6% of the growth year-on-year. Income before income tax was JPY 68.6 billion. Net income was JPY 44.9 billion, the earnings per share was JPY 355.81.
Average foreign exchange rate was JPY 108.74 to USD, 1.4% of appreciation of the yen, JPY 121.51, 6.5% at the appreciation of the yen. As a result of it, the impact of this, the currency fluctuation, was JPY 20 billion minus for the net sales and JPY 2 billion minus for the operating income. When it comes to sensitivity to the currency, we did not change that for the yen and USD, and JPY 1.2 billion to the change of JPY 1, and JPY 200 million of the change of JPY 1 to EUR. Next, let me talk about segment-wise business performance. First of all, and the part of the products in the inductive devices will be shifted to that segment of the Passive Components. That's in the first half, the sales of the inductive devices in the previous year was pushed down by JPY 4.5 billion and JPY 1 billion minus an operating income.
We have just revised this performance. First of all, the net sales of the Passive Components were JPY 200.1 billion, 11% negative from year earlier, and operating income was JPY 21.8 billion, 28.3% minus from the year earlier. Operating income margin was 10.9%. When it comes to ceramic capacitors, it had been increasing the business for the automotive and the base stations, just like the ICT market. Now, when it comes to the sales to the distributors, have declined due to the adjustment of the inventory, and we have only slightly growth in ceramic capacitors. Now we have done more sales in that high added-value product, so that's why we have had a positive growth in the sales, and then also we have slightly improvements of the profitability.
When it comes to high-frequency components, now with the startup of the 5G network, now we have more sales in business and the base stations so that we could have the positive growth in the sales. When it comes to the other capacitor components business, now it has been adversely affected that the slowdown of the global economy. Aluminum electrolytic capacitors have just like the previous quarter, and have been struggling in the automotive and renewable energy markets, like also for the industrial equipments, and declined both the sales and the profits. The inductive devices and the piezoelectric components and the circuit protection components, have been also affected by the declining demand of automotive and the other industrial equipment markets. We have a negative in both sales and profit. Next, Sensor Application Products. Sales was JPY 38.9 billion, -1.5% in sales from previous year.
We have operating loss of JPY 12.5 billion on operating performance, and will be declined by JPY 3 billion year-on-year. When it comes to that, the M&A expenses for InvenSense was decreased by JPY 100 million. We have recognized JPY 2.7 billion. In this segment, now some slowdown of the global economy. TMR sensor, MEMS sensor, and also the pressure sensor, that are all the promising end products for us. Even in this slowdown in the global economy, now we have expanded and steadily for that new application and new customers. On the other hand, when it comes to the conventional sensor, like a temperature sensor and Hall sensor, have been in a bit of a hard time in the automotive and industrial equipments and also in HA markets. We have seen in the trend of declining.
Sensor Application Products as a whole, we have to recognize both negative growth in both sales and profits. When it comes to that different business, the temperature sensor has been declining, but on the other hand, the pressure sensor could expand the business to the automotive market. All in all, in both the sales and profits, only about a slight decline from a year earlier. When it comes magnetic sensors, TMR sensor has been expanded for not only for the smartphone but also for the new applications. It has been very boosting, and also for the sales for the automotive applications has been favorable, that is why we could push up this profitability.
On the other hand, Hall sensor have decreased in business with automotive applications, that's why that magnetic sensor as a whole, we had to recognize that both negative growth in both the sales and profits. When it comes to MEMS sensor, first of all, motion sensor have pushed its business for the major clients. Also the MEMS microphone has been very favorable for the smartphone and IoT devices. On the other hand, we have to spend the expenses for the mass production of the MEMS motion sensor, also we changed the product mix. That's why we had to have expanded loss from previous year. Next, Magnetic Application Products. Sales was JPY 110 billion, 24.6% minus year-over-year, and operating income was JPY 6.7 billion, and we have the 52.3% gross operating income margin was 6.1%.
When it comes to hard disk drive head, mainly for that, the demand for that, the 2.5-inch head for the PC have declined. That's why this will lead to that, the reduction of the sales volume by 13% from the year earlier. The assembly sales for the HDD have reduced by half from the previous year, so that we have lost about the sales by 28% from the year earlier. The sales of the HDD suspensions, now we have more of the micro DSA type of the suspensions, have been increasing in product mix, so that we could have that and pushed up average selling price, and we have more revenues for this. Also when it comes to application product for suspensions, we could have a boosting that business in ICT market.
On the other hand, hard disk drive suspensions, the sales volumes have reduced, and all in all, our total sales for this segment have declined by 20% year-on-year. Hard disk drive head suspensions and about operating income was due to the shrink and the revenues, and also have a decline in the business and trend. When it comes to nearline HDD heads, which is very highly added value, and also micro DSA type suspension have increased in the product mix. We're also concentrating our production basis, so with that, all the making of the production efficiency, we are already that we're starting to deliver the goods. That now we could maintain that exactly same profitability from the last year.
When it comes to magnet for that application like the wind power generation, the industrial robotics, and machine tools, these are all that the industrial required markets. We have sales have declined by 13%, but now when it comes to operating income, now by improvements of the productions for the automotive markets and a lot of the cut measures, now excluding that impaired loss of JPY 4.7 billion last year, if including an [everywhere to basis], we have the improvements and the profitability.
Energy Application Products. Net sales was ¥318.2 billion. Operating income was ¥69 billion, up 13.5% and 27.1% respectively. A big jump. 21.7% actually, in regards to the operating margin. Rechargeable Batteries. Sales for Chinese smartphones grew flat YOY. In other regions other than China, major customers had good sales, pushing up the overall market for smartphones. Tablets and laptops grew firmly. The wearable mini cells for wireless earphones grew in a big way. Besides the increase in income, improved product mixes, and income from production volume reaching a peak, as well as the further improved productivity and efficiency, all in all, our profit grew in a big way. Power supplies for industrial equipment have been affected by the slow economy. Revenue for the semiconductor manufacturing equipment and for the instrumentation equipment, actually for industrial equipment, the market declined, pushing down the profit.
This shows analysis for the changes in operating income. Factors for JPY 6.6 billion increase in profit. We had a decline in the automotive. At the same time, we had an increase in the rechargeable batteries, actually about JPY 4 billion. Hard disk drive had a cyclical round. Rechargeable batteries actually has declined as much as JPY 7.7 billion, downside. We went through the series of activities for the manufacturing capabilities and its efficiency, and also rechargeable operations, JPY 10.1 billion. Actually, we were able to absorb the impact coming from the price erosion. We had impairment in the two early quarters, actually, giving us as much as JPY 1.1 billion, and also InvenSense acquisition costs coming down about JPY 100 million. Due to the rechargeable battery and the business expansion, as well as the development costs increase as much as JPY 3.7 billion. Effects impact was negative, JPY 2 billion.
All in all, we had a profit of JPY 6.6 billion, positive side. I will go through the outline of the consolidated numbers for the second quarter. Net sales was JPY 370.2 billion, down 2.3% year-on-year basis. Operating income was down 19.3%, becoming JPY 43.9 billion. Income before income taxes, JPY 43.9 billion. Net income, JPY 29.4 billion, renewed the record on the quarterly basis. Operating margin was about 11.9%, showing we were on our way to improve profit-making capability in a big way. I'd like to go through the changes by segment from the first quarter to the second quarter. Some of the factors I'd like to highlight for you. In Passive Components segment, actually, it went up JPY 3.6 billion from the first quarter, in sales, 3.7%. Excluding the effects and impact actually, that was an improvement by 6%.
ceramic capacitors, particularly for the automotive and also in 5G base stations, actually improved. aluminum foil capacitors, particularly for the industrial equipment, actually went down. At the same time, for the car business actually, the numbers went up. We had flat from the first quarter, and actually up JPY 300 million from the first quarter, or 1.8%. inductive devices and the sales are actually JPY 1.6 billion from the first quarter, were up 4.7%. We had a slow in the sales for the industrial equipment. At the same time, for the automotive market, and also for the foreign markets, actually ICT sales grew. Other Passive Components. It went up JPY 1.8 billion, up 7.3%. As for the high-frequency components, actually, thanks to the 5G bases, actually, we had good performance, and also the ceramic filter actually went up for the smartphones.
The piezoelectric components as well as the circuit protection components actually have been flat from the first quarter. Passive Components operating profit actually JPY 1.1 billion from the first quarter, up 10.7%. The ceramic capacitor operating margin, actually the same level from the first quarter. aluminum foil capacitors actually had a slight increase. Inductive devices and also the high-frequency components actually enjoyed both sales increase and profit increase. Piezoelectric components and also circuit protection, actually, we had a flat situation from the first quarter. Next, I'd like to now talk about Sensor Application Products. Sales are JPY 2.7 billion, up 14.9%. Excluding the FX impact, it was actually an increase of as much as 18% from the first quarter. Temperature and pressure sensors, actually, while pressure sensors went up, and also the temperature sensor actually went down, giving us some fluctuation.
Magnetic sensors, actually, for the Hall sensor actually further went down from the first quarter around the automotive market. Also TMR sensors actually went up in a big way, particularly for the ICT. As for MEMS sensor, in ICT, sales went up and gave us the increase in profit. Operating income, JPY 1.5 billion increased, we had the acquisition cost actually went down for as much as JPY 100 million. Now, actually now we are able to actually reduce the loss by as much as JPY 1.4 billion. Temperature and pressure sensors, actually, even though a slight number, we were on the side of the black figures. The magnetic sensors, actually, particularly the Hall sensor actually had some loss. MEMS sensor actually still had red numbers, still, we are trying to improve overall on the profitability structure. Next, the Magnetic Application Products segments.
The net sales actually went down JPY 1 billion from the first quarter, down 1.8%. hard disk drive head sales. We had an index in the first quarter of 88, and that became 89 in the second quarter. It was an increase by about 1%. hard disk drive and assembly, the revenue went down. Because of that, actually, overall actually went down by 5%. HDD suspensions sales became flat, suspension application products actually grew, giving us the increase of the revenue, 11%. Magnetic end sales actually went down by about 8%. Magnetic Application Products and operating profit actually, from the first quarter, went up by JPY 12 million or 6.1%. HDD actually went down both in sales and revenue, HDD suspensions actually increased its sales volume. Also, on a suspension application products, actually enjoyed good productivity, giving us better profitability.
Magnetic products actually went down in the loss number. Next, I'd like to move on to the Energy Application Products. It went up by JPY 29.9 billion from the first quarter, up 20.2%. The rechargeable batteries, actually, particularly for smartphone, particularly for the North American market, made great contributions and also the good numbers and performance for Chinese market and tablet and laptop and coin cell batteries actually made great contributions. As for the power suppliers and for the industrial equipments, actually, it further went down from the first quarter. As for the operating income, actually, it went up JPY 16 billion, becoming JPY 42.5 billion. Rechargeable batteries actually increased its volumes in sales, giving us the increased marginal profit. We are able to actually improve the productivity, and that gave us further operating profit and given us good synergy.
I went through the major highlights of the activities for the first half. Thank you again for your kind attention. For the full year forecast, I'd like to have Mr. Ishiguro to go through his presentation. This is Ishiguro . I'd like to thank you again for your precious time despite your busy schedule. That said, I'm quite happy to explain the full year forecast for FY March 2020. Following the first half, we are assuming that the demand will not recover due to the ongoing sluggish world economy. The current uncertainties are shown to continue. Well, in some semiconductor equipments, actually, there seems to be some recovery. That said, at the same time, actually, the automotive market, a much bigger market, in this market segmentation, we're still suffering from the slow economic activities and no way for us to be able to make a good recovery.
That is why we decided to revise down our numbers. As for the ICT markets and the 5G market, actually, it's giving us step-by-step the impacts. When it comes to the smartphones, and again, actually, due to the seasonality in the second half, and actually, we had a peak in the second quarter. Since then, actually, we do believe that it is going to come down slowly in assumption. All in all, for the third quarter and this current fiscal year, as for the sales and forecast, we do believe that it's going to become much tougher against us. From the second quarter, minus 1%-4%, that is going to be the level we keep an eye on by segment. Passive Components, I think it is going to be flat.
Particularly, it is going to take more time for us to get to see recovery in the automotive market. Inductive devices, piezoelectric components, and high-frequency components, we do believe that there is going to be good and smooth transition. As for the Sensor Application Products, actually, 6%-9%, this is going to be the increase, we are assuming. The TMR sensors, again, including for the ICT, yes, there is going to be a steady increase. MEMS sensor and expanding customers and MEMS-like products, it is going to help us to expand our improvement. Slowly but steadily and definitely, it is making good contributions to the improvement. Hall IC and temperature sensors, particularly important in the product lines in the automotive area. We do not expect that we are going to have a good governing.
As for the Magnetic Application sensor, actually 5%-8% is going to be the improvement, and we have in mind, hard disk drive and the heads and the volume, it's going to go up slightly, and also nearline hard disk drive heads are going to also grow. We're assuming that an averaging price is going to go up, and also hard disk drive and suspension, also for nearline, is going to be expected to go up. As for the magnets, hybrid cars, motor magnets are expected to grow, in assumption. Energy Application Products, actually 6%-9%. Actually, it is going to be the downward transition. As for rechargeable batteries, actually, due to seasonality, that's going to be the slowdown, taking into account for smartphones. As for the power supplies, the slight increase is expected.
For the full year, I'd like to actually give you the following updates. Net sales, actually on actual for the first half and also the future forecast I have just explained, JPY 1.42 trillion, the revenue is going to result in JPY 1.39 trillion, about 2% the downward revision. I have explained, this ICT market, actually, the driver there is going to be the rechargeable market. We are going to have the better performance, better than our forecast. At the same time, we are suffering from the overall slowing down of the economy and also the industrial equipments and also the automotive and activities are definitely going to have the dark cloud above us, we decided not to have too much expectation there. All in all, Passive Components and Sensor Products, certain products actually are going to actually go under the forecast data numbers.
At the same time, operating profit and also income before income taxes and also the net income, we announced those numbers in April, and we decided to stick to those numbers. CapEx and for the second half and also on CapEx and also on the R&D plans, actually, we decided not to change those numbers. As for the dividend, first half, actually planned JPY 90, and as for the second half, actually JPY 90 has been assumed. For the full year, actually it is going to be up to the end. It is going to be JPY 180 planned for dividends. We are faced with uncertainties of the global economy, but in energy transformation, EX, and also the digital transformation, DX.
EX and DX definitely are going to help us, so we have to tighten our belt so that actually we are going to have the deeper engagement, working on the best efforts in order to address the issues we are faced with. This concludes my presentation. Thank you indeed for your kind attention.