Thank you very much for joining us today. I'm going to present the consolidated results for FY 2019 of the TDK Corporation. I'm going to explain about the outline of our business performance. The FY 2019 key highlights concerning our net sales was up 8.7% year-on-year, operating income was up 20.2% year-on-year. Now the net sales have, in six straight years, passed the record high, and also the operating income and income before income taxes, and also for all in the are and another good highs, and for the operating income have recognized JPY 100 billion.
Now, from the middle of Q3 that we experienced the slowdown of the economy in China due to the friction of the U.S. and China, and also that adversely affected the automotive, ICT, and industrial equipment markets. Now, deliberately, we have lost the demand, but now the three favorable business segments in the first half have carried its momentum also in the second half, and the three businesses are more than offset, and we could ensure the growth of both the net sales and the profits, full-year basis. For the rechargeable batteries, with that expansion of the market share of our customer of the smartphone in China, and also for that we have favorable sales of the tablet, notebook PC, and mobiles.
On top of that, now mini cells have also expanded, so that we could ensure the substantial growth of the sales and the profits, and make big contributions, company as a whole. For the ceramic capacitors, now high reliability and high redundancy products have expanded the business, mainly for the automotive markets. With that improvements in the profitability, we could steadily expansions of that to the profits and have contributed a lot for the underpinning the Passive Components business as a whole. For the HDD head and the suspensions, now the total demand of HDD have declined by about 10% year-on-year, also that will lead to that decrease of shipments of HDD head year-on-year. On the other hand, our high value-added product for the data center have increased in the shipments.
Although we have declined in the sales, we could ensure the incremental profits year-on-year, that will support our profitability of the company. On the other hand, when it comes to sensors and magnets, on top of that, the deterioration of the demands, also we failed to launch the new products in a timely manner in the market, so that it has made substantial negative effects and impacts. This is the outline of our consolidated full-year results. Net sales was JPY 1,381.8 billion. JPY 110.1 billion, 8.7% increase year-on-year. Operating income was JPY 107.8 billion, JPY 18.1 billion, 20.2% increase year-on-year. Net income before income taxes was JPY 115.6 billion, net income was JPY 82.2 billion. Earnings per share was JPY 651.02.
Our foreign exchange rates were almost on par with last year, JPY 110.94 for the dollar and JPY 128.48 to the euro, 0.9% of appreciation with JPY. The impacts of this fluctuation of currency was about JPY 5 billion of decline in sales. It would also push that about JPY 600 million in operating income. When it comes to foreign exchange sensitivities, there is no change from last year. A JPY 1 change will lead to JPY 1.2 billion of operating income in the dollar and JPY 200 million in case of EUR. Let me explain about the breakdown by each segment. We combined the segments, so that is why we revised the recognition of last year's performance. First of all, Passive Components sales was 403.7% of the incremental.
Net sales was JPY 433.4 billion. Operating income was JPY 58.4 billion, 16.3% up year-over-year. Operating income margin was 13.5%. We improved the profitability. When it comes to ceramic capacitors, products with high reliability and redundancy have been favorable in automotive industries. We have revenue growth, improvement mix, and improvement of production that contributed to profitability. When it comes to aluminum and film capacitors, in the market in China, particularly for renewable energy and home electric appliances, sales have declined. On the other hand, applications for industrial equipment and automotive markets have increased. All in all, we could ensure profits and a little bit of improvement in profitability.
When it comes to inductive devices, home electric appliances and gaming consoles in China have declined; they are shrinking. On the other hand, we are steadily improving the business in the automotive market, as well as more sales in smartphones. All in all, we have sales growth. For operating income, in the second half, industrial equipment and automotive demand have declined. We also implemented production adjustments. That is why profit has declined year-over-year. When it comes to high-frequency components, ceramic filters have increased for the favorable business for ICT. On the other hand, for piezoelectric materials and circuit protection components, we have a favorable business with industrial equipment. On the other hand, for ICT, and also the declining market in Europe, have pushed down both our sales and profits. Sensor Application Products.
Sales was JPY 76.5 billion, minus 1.2% year-over-year. Operating income was, including JPY 5.4 billion of M&A cost of the businesses, including this cost, JPY 22.1 billion of loss. It is a substantial loss. When it comes to the temperature and pressure sensor, it was adversely affected by the declining demand in China for home electric appliances. On the other hand, we have sales growth due to the favorable business in automotive markets. On the other hand, when it comes to pressure sensors, due to the increase of promotion and other costs, the sensors have been a little bit negative year-over-year. For magnetic sensors and Hall sensors, we have been going well in the automotive markets. We have sales growth and profit growth.
TMR sensors also have been favorable in the smartphone business, we have sales growth. When it comes to MEMS sensors, we could not launch the new products under the market in a timely manner, due to the slowdown in China. For all this now, the demand for the smartphone and drone have declined and decreased, due to the gaming market have declined, that now we have a substantial decline. Although we don't have the JPY 5.5 billion of M&A expenses this year, including all the cost for the expansion of the customer base for the cost for the materializations of the new models will push down that profits, we have a loss. Next, Magnetic Application Products. For the sales, JPY 272.8 billion of sales, -1.7% year-on-year, operating income was JPY 17 billion, +5.6% year-on-year.
When it comes to the hard disk drive heads, sales volumes have declined by 8% from the year earlier. On the other hand, the sales of nearline head have increased in the mix. With this improvement of the mix, an average selling price have increased and pushed up the sales. When it comes to the sales volumes for HDD suspension have declined, on the other hand, micro DSA type sales, it's increased in the product mix, with this increase in average selling price. The net sales have been almost flat year-on-year, on top of that, application product for the suspensions have increased as revenues. Although we experienced the declining of the sales of HDD assembly, all in all, it has been almost flat year-on-year.
When it comes to the profits, an increased selling price, then also for the improvements of the profitability of the HDD suspensions, we have a profit growth. On the other hand, when it comes to the magnets for the wind power generations, industrial equipments, the market have declined, that's why we declined in the sales. When it comes to flat magnets, also we delayed improvements of the productivity, that I mentioned earlier that in Q2, we had to recognize JPY 4.7 billion of impaired loss. That's now for the magnet business, we have expanded the loss like this.
Next is the Energy Application Products. Net sales was JPY 137.5 billion, operating income JPY 91 billion, going up +21.4% and +25.7% respectively. Sales of rechargeable batteries increased substantially through share expansion at our major customers selling into the Chinese smartphone market. In addition, sales grew considerably in the mobile device applications such as laptops and tablets. Sales also increased toward non-mobile phone applications such as game consoles, leading to an increase for both sales and profit in this area. Power supplies for industrial equipment sales and profit, in the second half, the semiconductor production equipment and robots demand saw a decline. Both sales and profit has been basically flat year-on-year. This is the breakdown of operating income changes.
JPY 18.1 billion of increase can be broken down as follows. The change in sales by JPY 39.5 billion is mainly thanks to sales increase in capacitors and secondary batteries, and improved product mix for HDD head suspensions. On the other hand, there was a negative impact of sales prices reduction of JPY 19.1 billion. However, we were able to offset this through rationalization and cost reduction. This will be JPY 21.5 billion, and another JPY 1.4 billion coming from benefits from restructuring. In terms of administrative and development costs went up in line with the business expansion of secondary batteries, and we have strengthened our development structure of our sensor business. We saw an increase of the SG&A and R&D. In total, this SG&A went up by JPY 26.5 billion.
One-time expenses for M&A, this is mainly for the InvenSense related expenses, year-over-year went down by JPY 5.5 billion, and JPY 0.6 billion increase came from exchange rate fluctuations. All in all, operating income increased by JPY 18.1 billion. Next is the change of operating income from the third quarter to the fourth quarter. Sales at Passive Components went down by JPY 4.8 billion, 4.5% against the third quarter. The reason behind this is, for ceramic capacitors, although the overall demand in the auto market slowed down, sales for our products increased specifically for our products. But for the aluminum film capacitor, sales declined for the renewable energy applications in China and auto applications. This was the JPY 0.4 billion decline of sales, 0.9% against the third quarter.
In the inductive devices business from the third quarter, it went down by JPY 3.3 billion, 8.4% sales decline. This is due to the deceleration of the Chinese economy and weaker demand in the European auto market. For the auto market and for the smartphone applications and for the industrial equipment overall, sales declined in this business. As for sales in other Passive Components, it declined by JPY 1.1 billion, 4.5%. In the high-frequency components business, the sales declined mainly for the Chinese smartphone market. Sales declined for piezoelectric material products and circuit protection components as sales for the European market decreased. For Passive Components, operating income declined by JPY 1.4 billion, 9.5% from the third quarter. Sales and profit of ceramic capacitors continue to grow, but for inductors and high-frequency components, we saw a decrease for sales and profit.
Going to Sensor Application Products, sales went down by JPY 2.4 billion, 12.2%. Sales of temperature pressure sensors were flat from the previous quarter. However, sales dropped significantly for magnetic sensors for smartphones and for the European auto market as well. MEMS sensor sales declined for applications such as smartphones, drones, and game consoles. Operating income for temperature pressure sensors were flat, while that of magnetic sensors declined in line with sales. In the MEMS sensor business, costs related to the acquisition of InvenSense went down by JPY 0.6 billion to JPY 1 billion, compared to JPY 1.6 billion in the third quarter. However, due to the decline in sales, a loss increased. Overall, for the sensor application business, we saw losses increase by JPY 1.7 billion. Next will be the sales of Magnetic Application Products. Sales went down by JPY 5.9 billion, 8.9% from the third quarter.
For the HDD head business, shipment volume index in the third quarter was 81, but went down to 76, which was a 6% decline. For the HDD suspension, sales volume decreased as well. Sales of magnets decreased due to weaker demand for industrial equipment. Operating income of the segment declined by JPY 3 billion from the third quarter. The major reasons behind this is the sales volume declined of HDD heads and suspensions, and in the fourth quarter, there was the Chinese New Year, and those came from lower utilization in China. Next is Energy Application Products business. Sales declined JPY 33.6 billion, 23.1% from the third quarter. Sales of rechargeable batteries decreased due to seasonality and was impacted by the deceleration of the Chinese economy. This led to a decrease of sales from mobile devices such as smartphones.
Another reason was slower sales for game consoles applications. Sales of industrial power supplies declined, impacted by the decelerating economy. Operating income was JPY 12.1 billion, declining by JPY 12.5 billion from JPY 24.6 billion in the third quarter. There was a decline of the sales volume for secondary batteries. Furthermore, in the third quarter, the cobalt material market went down further, and there is a time lag where we can reflect the changes in the material cost to our sales prices. This continued to persist in the third quarter. On top of that, there has been an operating loss due to the Chinese New Year in the fourth quarter. We saw a decline in income because of these reasons. The sales decreased, the industrial power supplies went down, as well as sales and income. That is all about the performance. That's all from me.
Thank you very much for your attention. Next, this will be the FY March 2020 outlook for the consolidated results. Mr. Ishiguro will make a presentation. Ladies and gentlemen, this is Ishiguro. Thank you very much for coming despite your busy schedule. From my side, I would like to explain about the outlook of our consolidated results for FY March 2020. First, I would like to explain about the business environment assumptions that we are making. In the mid to long term, the markets that we conduct business will see an acceleration of trends such as digital transformation utilizing digital technologies. Another trend is the transformations to renewable energy, there will be an energy transformation. Internally, I call this a DX and EX, to explain about the situation. This DX and EX in this type of society are electronics products.
The expectations towards our electronics business will further be enhanced. That is my understanding. Against this backdrop, how are we going to capture business opportunity? This means that how much can we contribute to the society? This is related to that initiative. The important point here is the time to market. We have to be very aware of that, and time to quality and time to volume. Maybe from the customer's perspective, this will be time to cost as well. We have to be agile to respond to these requirements, and we will have to offer our components in an adequate manner. This will be a very important point for our business. Through these improvements and enhancements, we will look at the market in a timely manner and expand our business.
That said, on the other hand, if you look at the short term, for instance, we have the U.S.-China trade friction, we have the deceleration of the Chinese economy. Globally, we have political instability. These will have an impact on the macroeconomy, and we cannot ignore these. On top of that, in this kind of environment, this will change very quickly. Maybe the sky, we will see a blue sky. It's very difficult for us to imagine that we're going to see a clarification of this murky vision. For FY 2020, we consider this year as a preparation for the mid-to-long-term growth of our business. We will execute measures so that we can achieve the targets that we have set in our midterm plan.
Based on this idea, in terms of the projection of FY 2020, for instance, this year, the ceramic capacitors have done very well this fiscal year. These Passive Components for the rechargeable batteries, these energy-related components. For the Energy Application Products, for these type of products from FY 2019, we will not assume a strong sales growth for these business areas. With the HDD drives, which is the major product under the Magnetic Application Products, we have seen a plateauing of the demand for the HDDs for the data centers. We think this will grow in the future, but right now, the demand is stagnant. We will have to take this in as a reality. In that type of condition, how will we make an outlook for our demand? Our assumption is that demand recovery will happen from the second half of FY 2020 and afterwards.
We will base our assumptions on these types of conditions. However, unfortunately, FY 2019, there was a delay in profit improvement for the Sensor Business and Magnetic Application Business. We will improve the profits steadily, through this, we will strive to enhance our overall profit. For the Sensor Business and for the magnet business, we have the future vision, we are going forward in our themes. By realizing these results or these initiatives, we want to enhance our overall profitability. That is our basis of our plan. Overall, we are not anticipating a major sales growth, but even so, we want to focus on our strength and uniqueness, including MLCC and rechargeable batteries. We will continue to invest for growth in these products. For FY 2020 full-year projection, what we think about this is shown in the next slide.
Based on the ideas that I have explained, I would like to talk about the full-year projections. The exchange rate assumptions, we'll be using JPY 108 to the U.S. dollar and JPY 122 to the EUR. Net sales projection is JPY 1.42 trillion, which will be a record high for seven years in a row. Our target for operating income is JPY 120 billion. Again, this will be a record high for us. The projection of income before income tax will be JPY 180 billion, net income will be JPY 84 billion, EPS JPY 666. Dividend outlook is JPY 19 for both first half and second half. This will be a JPY 20 increase for the full year at JPY 180. CapEx is going to be JPY 200 billion, depreciation JPY 130 billion, R&D JPY 120 billion. This is our projection.
Based on the net sales assumptions, this is a major changes in sales for each segment year-on-year. As I said, for the Passive Components and the Rechargeable Batteries, we are not anticipating a huge growth, but for Passive Components, mainly in MLCC, we will project a growth. On a year-on-year basis, we are forecasting a 2%-5% improvement. Although for the global sales volume for the automobile market, we anticipate this to be flat. In terms of the xEV, this will be related to the energy transformation and ADAS. We think that autonomous driving is going to expand and there will be increased demand for components necessary for this. For the ICT industrial equipment market, we are not assuming any growth in these areas. For the Sensor Application Products, we are anticipating a 28%-31% or maybe ±30% of increase.
MEMS sensors and TMR sensors for smartphone applications, we are anticipating sales expansion. With the magnetic and temperature pressure sensors, we think that sales will grow for the automobile market. For the Magnetic Application Products, the projection of sales will be a decline of 17%-20%. Although the proportion of nearline heads is going to go up, sales volume from HDD heads as a total will slightly go down. At the same time, the HDD assembly business, which we did to support our customers, we think this will go down substantially. On the other hand, in terms of the sales of suspensions, we assume that this will be flat. Magnet sales will increase for automotive applications, but will decline for HDD applications. We will actually intentionally decrease this area. The projection of demand recovery for industrial equipment is going to be delayed.
For the segment overall, we assume a decline in sales. For the Energy Application Products, we will be assuming a sales growth of 6%-9%. Sales growth for smartphone applications will only be seen by increased sales to our major customers. We anticipate growth to come in the non-smartphone business, such as mini cells. Sales of industrial power supplies will go down slightly. This is all from me. Thank you very much for your attention.