As the time has come, I would like to start the performance briefing of the first quarter FY March 2020 for TDK. I'd like to introduce today's participants, Senior Vice President Tetsuji Yamanishi. Senior Vice President Noboru Saito. Corporate Officer, CEO of Electronic Components Business, Shigeki Sato. Corporate Officer, CEO of Energy Solutions Business, Fumio Sashida. We have four participants from TDK. First of all, in terms of the outline of the first quarter, Mr. Yamanishi is going to make the presentation. Hello, this is Yamanishi. Thank you very much to coming over to the performance briefing of the first quarter of FY March 2020 for TDK, despite your busy schedule. From my side, I would like to brief you on our consolidated results. First of all, this is some of the highlights of the performance in the first quarter.
Both the U.S. and China has raised their tariffs, there has been the escalation of the trade friction between the U.S. and China. The impact of this has been spreading all over the world, the business environment has been impacted by the deceleration of the global economy. On a year-over-year basis in the first quarter, sales has gone down by 1.8%, operating income has gone down by 1.6%, going down slightly. Basically in terms of the earnings, we've been able to maintain the same level as last year. We have three key priority markets, ICT, automotive, industrial equipment, and energy. In terms of the demand trend of these markets, it is mixed. In terms of ICT market-related sales, it is over our expectations that we had expected at the beginning of this year.
In terms of the rechargeable batteries, it has been able to increase our sales to our major clients with smartphones, the sales increased. We have seen an increase in sales and profit in this area that has driven the earnings of our company as a whole. In terms of the automotive and industrial equipment-related sales, specifically in the Chinese market, there has been a deceleration of the demand, and the demand level has been below compared to what we expected initially. Year-over-year, sales has gone down in this area. As a result, in the passive component business, in all of the business areas, year-over-year sales has declined. In terms of the sensor application products, specifically for the automotive sales, has been stagnant. We have seen a decline both in sales and income.
The impact of the deceleration of the global economy, from the second quarter onwards, in terms of demand trend, the outlook is unclear. That is what we are expecting. We will go forward in the initiatives that we have decided at the beginning of year in each of businesses, and we will focus on achieving our targets for our midterm management plan. Going to the outline of our performance. Sales is JPY 336.8 billion, year-over-year, JPY 6.3 billion of decline. This is 1.8% of decline of sales. Operating income, JPY 25 billion, year-over-year, minus JPY 0.4 billion. This is a 1.6% decline in profit. Profit before tax is JPY 24.7 billion. The net income is JPY 15.6 billion. The earnings per share is JPY 123.43. In terms of the average exchange rate, will be JPY 110.10 to the dollar. This is a 0.9% weaker yen. Against the euro, JPY 123.57.
This is a 5.1% stronger JPY as a result because of the changes of the exchange rate. In terms of the sales impact was JPY 3.9 billion of decline of sales. In terms of operating income, this has been a JPY 0.6 billion positive impact, increase of profit. In terms of sensitivity of the currency, for instance, against the USD, is against JPY 1 fluctuation, this is a JPY 1.2 billion impact. Against the EUR, JPY 1 fluctuation accounts for JPY 0.2 billion of impact for the year. Going to the by-segment situation. From this year, in terms of the passive components business, some of the inductive device products has been reclassified under the other passive components. As a result, in inductive device year-over-year first quarter sales has gone down by JPY 2.4 billion. Operating income has gone down by JPY 0.5 billion. Because this is a reclassification against the previous year.
In terms of the passive component sales, is JPY 98.3 billion. This is the decline of sales of 12.8%. Operating income was JPY 10.3 billion. Year-over-year, it was a minus 26.4% of decline in profit. Operating margin was 10.5%. For the ceramic capacitors, so the ICT market sales, for instance, sales for the base stations has increased, but for the industrial equipment, the sales has gone down. For the automotive market demand, this was decelerated, and there has been the adjustment of inventory, meaning that the sales to distributors has gone down. Overall, we have seen a decline in sales. As for the higher added value product sales has increased. The average sales prices has gone up, and so the income as a profit has gone up, and the profitability has improved.
For the aluminum electrolytic capacitors, for the automotive market, for the renewable energy, this is for the industrial equipment sales has gone down substantially, the sales has gone down overall, the profit has gone down as well. Going to the inductive devices for the automotive market and for the distributors, sales has gone down. Again, this is a decline in sales. In terms of the products that is more applicable for the automotive market, the sales has gone down, the profit has gone down. For the high-frequency components, the sales for the base stations has gone well, they increased their sales for the piezoelectric material and circuit protection components for the automotive and industrial and [command-related sales] has gone down. We have seen a decline in sales in this area. Next, going to the sensor application products. Sales was JPY 18.1 billion.
This has been a 4.2% decline of sales year-over-year. Operating income was a JPY 7 billion of loss. Year-over-year, this is a JPY 2.1 billion of decrease of profit. A JPY 1.4 billion of expenses related to the acquisition of InvenSense is included as the same situation last year. Going to the market sale situation by market for the automotive market, because of the solution of the demand, we have seen a major impact. In terms of the temperature sensor and the Hall sensor, mainly in these areas, sales for the automotive market has gone down by 13% in terms of sales. For the ICT-related sales, TMR sensors, smartphone-related sales has increased. For MEMS sensors, we've been able to increase our customer base, and we have been able to start the sales to our major customers. This has been related to a 12% increase of sales.
In terms of the temperature and pressure sensors, for pressure sensors, the sales has increased very steadily. On the other hand, for temperature sensors, sales has decreased. Overall, it is a slight decline of sales. For the magnetic sensors, this has been a substantial decline of sales of Hall sensors, so overall, a substantial decline in sales. For the MEMS sensors, there is more applications for mics, and for the motion sensors, we have been able to offset the decline of conventional products by increased sales of new products. Overall, we have seen a substantial increase. In terms of the operating income, we have seen a decline in sales and profit both for the automotive market and MEMS motion sensors mass production, there is an increase of development costs. Compared to the last year, loss has been expanding. Going to the magnetic application products business.
Sales was JPY 55.5 billion year-over-year. This is a decline by 21.3% of sales. Operating income is JPY 3.3 billion. Year-over-year, a decline of profit by 5.7%. Operating margin is 5.9%, so a slight improvement. HDD heads. The sales volume for this term, the index is 88 year-over-year. Compared to the same month last year, it's a 12% decline. In terms of the HDD assembly sales, year-over-year, it has declined by 43% in terms of sales. As a result, overall for this business line, we have seen a 25% decline of sales. For the HDD suspension sales, there has been a more increased product mix for the micro dual-stage actuator type, which has more higher added value, more composition for this. As a result, our sales prices have gone up.
For the application products, has been increasing for the ICT market. However, for the hard disk drive suspension overall sales volume has gone down by 27%. For the ICT suspension overall, the sales has gone down by 17%. For the hard disk drive head suspension overall operating income, because of the decline of the sales volume, and we have seen a slight decline in profit. In terms of magnets for wind power applications and for the industrial equipment such as industrial robots or the machine tools, that has gone down by 9% in terms of sales. In terms of the operating profit, it's basically the same level as last year.
Let me talk about energy application products. Net sales was JPY 144.5 billion, operating income was JPY 26.5 billion, and the net sales was up by 15%, and the operating income was up by 26.2%, and the operating income margin was also at 18.3%. That's improved. For the second to the markets, now, a little bit slight decline in the business was the market, a smartphone market in China. On the other hand, we can have this bounce back, and the market show up. We can have the more sales with the major customers, and that will be more than offset. For the tablet, the notebook, and also wearable and many sales, and they were pushed up.
That's about the most of the top lines and also for the net profits, with increasing the number of productions and production efficiency. For industrial power supply for industrial equipment have declined as the industrial equipment market, including the semiconductor manufacturing equipment and also for major capital goods, have pushed down that momentum. Next, let me talk about the quarter results by segments, focusing on the net sales and operating income changes. First of all, for the passive component segment, net sales was declined by JPY 3.6 billion, JPY 3.5 billion decline from Q4. For ceramic capacitors, have a declining to the sales to distributors, for aluminum and film capacitors, have a decline for the sales for automotive and industrial equipment, decreased by JPY 3 billion and 7.1% from the previous quarter.
Inductive device business, for the net sales, declined by JPY 200 million, 0.6% from the previous quarter, Q4, and the sales for the automotive market have decreased. On the other hand, ICT market business, including the smartphone, have pushed up. All in all, it's only slight decline. The sales of the other specific components were declined by JPY 500 million, 2% decline. High-frequency component products, ceramic filter have increased for the smartphone markets, and piezoelectric components and the circuit protection components have declined for the automotive and industrial equipment markets. The operating income for the passive components have also decreased by JPY 3 billion, to 22.6% from the Q4. For the capacitors, operating income capacitors have declined in both the top line and also profits. Aluminum film capacitors declining also for the profits, and also including that the production decreased.
Induction device have declined because now we have the less sales for that's the highly profitable automotive markets. High frequency components are flat, and piezoelectric and also the circuit protection components have declined in both top line and profits. For the sensor application products, net sales have increased about JPY 800 million, 4.6% for the temperature and pressure sensor is flat. Magnetic sensor and Hall sensors have declined dramatically for the automotive markets. The TMR sensor have increased, but for the ICT market, but they have all in all declined. For the MEMS sensors, but increased into ICT market, and also for that have the favorable business for the game and just industrial equipments. Operating income have pushed up by JPY 200 million. Excluding from the InvenSense and M&A costs have increased by JPY 400 million.
On a net basis, now that the loss have shrinked by JPY 600 million. Temperature and the pressure sensor business have been flat. Magnetic sensor for the Hall sensor have declined in profits, but the TMR sensors have the incremental incomes. For the MEMS sensor have an increase in the sales and also the profits. When it comes to the magnetic application segments, and net sales have declined by JPY 5 billion, an 8.3% decline from the Q4. The sales of HDD head have now, although that the shipment volumes increased by 8%, but now decline in the average pricing sales. About a 40% decline in the sales of the HDD assembly business. All in all, it has decreased by 13% as a whole.
For the HDD suspensions, the sales of the suspensions have, although that volume declined, but now the average and the unit price is now up so that it was almost a flat. The magnet is almost flat in the sales. Operating income for the magnetic application components is declined by JPY 1.5 billion, 31.3% quarter-on-quarter. Magnets and HDD suspensions have almost a flat from the Q4, but now HDD head have been declined both in about the sales and in the incomes, and then also due to that, the decline in prices, and also in doing for the development costs have been pushed down to the profit. Next, the energy application products, and the net sales have increased by JPY 32.7 billion and 29.2% from the annual basis.
Secondly, badly have been favorable for the sales to our smartphone for the major customers and also for the North American and China. We have a substantial and favorable business with tablet and notebook. Industrial equipment and power supplies are flat. When it comes to operating income, was increased by JPY 12.1 billion from the Q4 and JPY 144 billion to the JPY 26.5 billion. We have just a negative impacts of this and operational loss of the Chinese New Year, but at the same time, we have secured a substantial increase of the sales and profits due to that supplies. Let me talk about the breakdown of operating income changes. Let me correct that one information in the slide. Now you're looking at the informations of the bridge charts.
In this M&A, one-time expenses related to M&A, it showed that the JPY 400 million. This is related to the expenses for that InvenSense M&A, JPY 1.4 billion, exactly the same amount. There was not any change of JPY 1.4 billion. That is why this JPY 400 million is about offset by the increase of the volumes. Due to that, about the changes in the sales is not the JPY 2.7 billion, actually is JPY 3.1 billion. These are the two corrections I would like to make here on this bridge chart. First of all, let me talk about this. The factors for the JPY 400 million of the operating income, due to JPY 3.1 billion, the changes in the sales, particularly, for the secondary batteries, about the JPY 5.3 billion negative, due to that decline in sales pricing for the secondary batteries.
On the other hand, about JPY 3 billion, plus, for the rationalization cost reductions, and also for the JPY 500 million for the impaired loss. For that expansion of the secondary batteries will lead to that increasing as general expenses increase by JPY 2.3 billion. The fluctuations of the currency will lead to the JPY 600 million, so that in total, JPY 400 million is the changes. Next, let me talk about the percentage for Q2 of the changes in sales. First of all, for passive components from the Q1, we expect about 8%-11% of increase the sales. From the rates of the second half of the Q4, we expect slightly increase of the automotive markets, and we expect the increase about MLCC, inductive device and the piezoelectric components and the circuit protection components.
For ICT market business, where they go into the peak season, including smartphone, we expect about the sales of inductive device and high-frequency components. We do not expect a so much substantial recovery of industrial equipment market. Film capacitor business will be only slightly increased. For the sensor application products, we're focusing to increase by 14%-17% in net sales. There's only slight increases of the temperature and pressure sensor. For the magnetic sensor and the TMR sensor will substantially increase in the ICT market, we expect about the favorable business for the MEMS sensor. When it comes to magnetic application products and the volumes of HDD head will increase by 6%. Assembly of HDD assembly will further drop.
All in all, for HDD head, the business will be flat, and the volume of HDD suspensions will be up by 24%, also top line increase we expect. The magnet will be almost flat. For energy application products, will increase by 12% to 15% and increase in sales. For the secondary batteries, now, for the sales to the major customers then dramatically increase in Q1, will just slow down. On the other hand, we expect about that the volumes of the mini cell business increase in the peak season, and for the power supply products will be almost flat. Last of all, let me talk about a full-year projection for the FY March 2020. As for the forecast of this fiscal year, there's not any change from the forecast we announced the last time in April.
Three major focus markets now, for the demands is now the various point of market, at the same time, the trade friction between the U.S. and China and Brexit, we have to have some other impact due to all this global macroeconomy. At the same time, we like to secure that the opportunities with growth and based on the demands, and also, we like to carry out over all this and improvements of the efficiency of the businesses and try to achieve the target. That's all my presentation. Thank you very much. Thank you