Allow us to start our performance briefing for the first quarter fiscally in March 2019. Allow me first to introduce the attendees from the company. We have Mr. Hiroyuki Uemura, Senior Executive Vice President. We have Mr. Noboru Saito, Senior Vice President. We have Mr. Tetsuji Yamanishi, Senior Vice President. From Energy Solutions Business Company, we have Mr. Fumio Sashida, CEO. Those are the four attendees from the company. Thank you again. First, in regard to the consolidated performance for the first quarter, I'd like to have Mr. Yamanishi to go through the highlights. Hello, this is Yamanishi speaking. First one, I'd like to thank you for your precious time, despite your busy schedule, and also despite the quite hot weather outside, to attend this first-quarter consolidated performance for FY March 2019. Without further ado, I'd like to go through the highlights.
First, the highlights of the earnings. Net sales on a YOY basis was up 18.5%. Operating income grew dramatically by 53%. We were able to renew the net sales record on a quarterly basis, and we achieved in the third quarter last year. In regard to the Passive Components of the business, thanks to the continuing growth in the automotive and industrial equipment markets, our capacitor revenue grew firmly. Of particular notice is that MLCC, due to the increased demand for highly reliable and redundant products, made a further contribution to the profitable business of the whole Passive Components segment. Sensor Application Products business. On top of the firm and continuing sales of the temperature and the pressure sensors, and the magnetic sensors for the automotive market, the magnetic sensors for ICT particularly was able to maintain its profit.
The Magnetic Application Products, with the overall HDD and head demand market as a whole, it declined about 3% YOY basis. The sales volume of 2.5-inch hard disk drive and the heads for personal computers declined. With the data centers, the business grew as our tailwind. Our nearline HDD and the heads increased, resulting in a better product mix, while the volumes sold declined by 7%. Despite that fact, we are able to grow the sales and profit. Energy Application Products. In the rechargeable battery business, we were able to respond shortly to the increased orders coming from the major Chinese customers who launched new devices and adjusted their inventory level. On top of them, tablets and notebook personal computers and games, non-smartphone business had continued firm revenue.
The increased production and improved factory operation, together with the improved cost, all in all, helped us to increase our sales and profit greatly. Moving on to the performance outline. Net sales was JPY 343.1 billion, up JPY 53.6 billion YOY basis, or up 18.5%. Operating income was JPY 25.4 billion, up JPY 8.8 billion, or up 53% YOY basis. Income before income taxes was JPY 23.7 billion. Net income was JPY 16.2 billion. Earnings per share was JPY 128.29. For information, due to the U.S. GAAP change, starting from April this year, there's been a change in regard to how to deal with the retirement benefits. Part of the budget there, almost JPY 1 billion, has now been placed onto the non-operating expense side. The first quarter, for this current fiscal year, this has been already reflected into the non-operating performance.
The average exchange rate for the term is JPY 109.09 to the USD, up 1.9% on the JPY side, and JPY 130.16 to EUR, down 6.7% on the JPY side. With this, the impact from the currencies was positive JPY 2.8 billion in revenue, and positive JPY 1.1 billion in operating income. The FX sensitivity in our assumption is about JPY 1.2 billion between JPY, Japanese JPY, and USD. If JPY moves one JPY, no change from the previous year, and about JPY 200 million between the Japanese JPY and the EUR. Allow me to move on to the segmentation and updates. As has been explained in the previous performance briefing, there has been some changes in the segmentation. Because of that, we had to actually modify the last year's numbers. That's what you see here.
As for the Passive Components, the actuators, and for the camera modules, as well as due to the changes in the product mix, actually, the revenue went down to JPY 6.8 billion. Operating income actually moved up JPY 1 billion. JPY 127 billion for this segmentation, a 26% increase in operating income. JPY 14 billion or up by 35.9% an operating income ratio of 12.4%. All in all, we were able to actually increase the sales, as well as we were able to improve profitability. Ceramic capacitors, by the way, thanks to the strong demand in the cars market, we're able to now sell a product for automotive, resulting in the increased revenue. Also, due to the strong demand for the high quality, high reliability, and the other high features, we are able to actually now sell more, improving our profitability.
Aluminum electrolytic capacitors, actually, we enjoyed really good sales and also renewable. The industrial equipments business, actually, we were able to grow, giving us a good growth in both in sales and revenues. Inductive devices, by the way, again, thanks to the strong demand in the automotive industries. With that in the background, we're able to actually improve the product mix, particularly on the side of the car business. High frequency, and the ceramic was able to grow now, thanks to the great demand in the Chinese market and the piezoelectric. The Circuit protection, actually, thanks for the greater demand and for the automotive as well as industrial equipments, the business, we're able to grow both in sales and profitability. Moving on, I'd like to move on to the Sensor Application Products business. Of course, there has been some partial change in the product mix.
Actually, the sales went down JPY 100 million and operating income actually increased JPY 100 million. Net sales was JPY 18.9 billion, up 16% year-over-year basis, and operating income, again, even since the acquisition cost actually went down by JPY 2.1 billion from the previous year, still, we suffered from the decline as much as JPY 400 million on the side of operating income. Sales for the automotive market shows about 90% increase in revenue, driven by the temperature and pressure sensors, mainly in the Europe and Japanese markets. ICT market revenues shows a 4% growth due to the expanded opportunities in the Magnetic sensors, improving its profitability. We are so happy as to this point. MEMS motion sensors is actually growing for industrial equipments including drones. As has been expected since the beginning of this fiscal year, the major customers for ICT actually are declining.
Now we are working on the initiatives to try to expand our customer bases. We are working on the new development, new product development, including the ultrasonic authentication and applications to others that are pushing up customer side. Our loss is becoming bigger.
Next, Magnetic Application Products with a recombination of the sectors and the segment and the last year's performance, they reduced it by JPY 13.6 billion to net sales and JPY 1.1 billion in the decline in operating income. The outline of business, the net sales is JPY 70.5 billion, 6.2% up year-on-year, and operating income is JPY 3.5 billion and 5.4% growth year-on-year, and operating profit margin is 5.0%. HDD head have declined its sales volumes by 7% year-on-year. On the other hand, now we have incremental sales for the nearline head with the incremental demands of the HDD for data centers. Average selling price will improve with this improvements in mix. Now we have 7% growth on the net sales and also with a better profitability.
When it comes to HDD suspensions, the sales volume have been flat from last year, but the suspension application products have been expanded in the ICT markets, and all in all, we could secure the 9% of growth in net sales. When it comes to operating income, the expenses for the standard of the suspension application products have negatively affected the operating income. When it comes to magnets, now and with the declining sales for the wind power generation business will deteriorate the mix, and we have a negative growth in both net sales as well as the net operating income. Let me talk about Energy Application Products. On top of the traditional and rechargeable batteries, now we have industrial equipment power supplies and automotive power supply products have been integrated as part of the Energy Application Product segment.
Now we have increased it by JPY 15.6 billion of net sales year-on-year, and JPY 800 million of growth of operating income year-on-year. Net sales is JPY 125.6 billion and with the JPY 21 billion of operating income, 31.8% of the net sales increase and 55.6% in the growth of the net operating income dramatically. Still we maintain a very high operating profit margin with 16.7%. The rechargeable battery have an increase pushed up by that dramatic demand of the smartphone market in China. On top of that, also, we have non-smartphone sales, like tablet, notebook and gaming consoles. Now with the synergy of that and volumes increase and the improvements in productivity, it have been improving the profitability very efficiently. Industrial equipment power supplies have been very steady based on the very stable demand.
Let me talk about business results on a quarter-over-quarter basis from the last Q4 to the Q1 this fiscal year by segments. This is both for the net sales and operating income. Due to the recombination of segments, just like mentioned earlier, we have just revised that business performance. First of all, for the Passive Components segments, net sales have increased by JPY 6.8 billion, 6.4% growth, the quarter-over-quarter basis. Ceramic capacitors have been very steady for the automotive markets. On top of that, aluminum film capacitors have been increasing for the renewable energy markets. That's why it have increased by JPY 3.1 billion, 7.5% Q-on-Q basis as from last quarter. Inductive devices net sales have increased by JPY 2.1 billion, 5.4%, the growth quarter-over-quarter. Ceramic capacitors has been very steady in automotive markets.
We have more sales in the smartphone market in China. The sales of the other Passive Components has increased by JPY 1.6 billion, 6.3% increased on a quarter-over-quarter basis. High frequency components have increased for the ceramic capacitors and ceramic filter in the smartphone market in China. Piezo components and circuit protection components have increased for the industrial markets. The operating income of the Passive Components have increased by JPY 400 million, 2.9% on Q-on-Q basis. Ceramic capacitors increase is the volumes and improvements of the productivity have contributed. It has been a very favorable business inductor have the major factor. The sales of Sensor Application Products have declined by JPY 400 million, 2.1% decline from the last quarter.
The magnetic sensor have increased for the ICT market. For the MEMS sensor have been adversely affected by the inventory adjustments on the ICT market. The demand for the gaming console and drones have an adversely effect. That's the net sales. Operating income have declined by JPY 300 million. Even with including the JPY 100 million reduction of the impairment loss and related expenses, increasing of the sales of a magnetic sensor, this have been more than offset by the declining business of MEMS sensor and when the fixed expenses increased by the M&A of Chirp Microsystems. Let me talk about the Magnetic Application Products segments. The sales have increased by JPY 3.6 billion, 5.4% from last quarter.
The sales of HDD head have been based on the increase of the volumes of the shipments and the improvement product mix. It have increased by 11%. HDD suspensions have been flat for the suspension sales. The applications products, this is microfabrication products sales, have declined due to that shrinking demand. The sales of magnets have declined by 5% from the quarter-over-quarter basis from last quarter due to that shrinking sales for the renewable energy business. The operating income of Magnetic Application Products have increased by JPY 2.9 billion from the last Q4. That restructuring expenses recognized in Q4, that impaired and the loss for the HDD wafer and the negative impacts of the operations and all the Chinese New Year have all gone.
That now is pushed up by that incremental volumes of HDD head. Let me talk about Energy Application Products segments. The sales of this segments have increased by JPY 25.2 billion, 25.1% an increase from the last quarter. The rechargeable battery have been very favorable due to the increasing orders for the smartphone market in China for the new devices and also we have deal with the startup of the recovery of the productions after the inventory adjustment in Q4. Operating income have increased by JPY 5 billion from the JPY 13 billion to JPY 21 billion. Due to this, that's an exclusion of the negative and operational and the impacts of the Chinese New Year and also with increasing of the volumes, and we could improve the marginal profits and also the cost reductions and contributed this. Let me talk about breakdown of operating income changes.
In total, we have incremental profits of JPY 8.8 billion year-on-year. First of all, capacitor and HDD head, and secondly, batteries. With all these and the change of the sales pushed up by JPY 10 billion of profits. On the other hand, with the sales price reductions have a negative impact by JPY 7.5 billion. On the other hand, the rationalization costs, the cost reductions have JPY 10.5 billion positive effects. Also benefits from the restructuring we implemented the last Q4, we have JPY 200 million and reductions of that one-time expenses related to the InvenSense M&A and pushed up by JPY 2.1 billion. On the other hand, with expansion of the rechargeable batteries, and we have incremental SG&A expenses due to the enhancement of the business organizations, and have the negative JPY 10.6 billion.
On the other hand, we have JPY 1.1 billion with the exchange fluctuations. Taking all this into consideration, the bottom line is JPY 8.8 billion positive. Let me talk about the projections for Q2 of FY March 2019, images of changes in sales. First of all, for the Passive Components, it will be almost flat from the Q1 is now projected. When it comes to MLCC, we are in the full end of the production capacity to deal with the demand so that we expect about almost a flat in terms of the net sales. When it comes to the inductor and the high frequency components, we expect about an increase of business with the new device for the North America.
When it comes to aluminum electrolytic capacitors, due to It had been favorable so far about the renewable energies, but in China, the feed-in tariff price will be declines. That's why we're getting into some negative impacts of taking all this into considerations and some of the favorable and unfavorable conditions will be offset with each other. All in all, we still are forecasting the flat. When it comes to Sensor Application Products, we expect about the increase of 8%-11% in terms of net sales. With the new device in North America, this will have the favorable business, a magnetic sensor, and also we expect about the MEMS sensors and business will increase due to the smartphone market in China. For the Magnetic Application Products, our forecast is about positive 5%-7%.
We expect about 8% of the volumes for HDD heads. On top of that, we expect about HDD suspension will forecast to increase by 14%. Besides, about suspension application products, this microfabrication products will also increase. On the other hand, when it comes to magnets, due to the change of the product mix, but still our forecast is flat for magnets. When it comes to Energy Application Products, our forecast is the 9%-12% growth in net sales when it comes to rechargeable batteries. Now we expect it to a little bit slow down in the Q1 when it comes to the smartphone market in China. We expected about an incremental business with that new device market for the North America.
All in all, we think it's a little bit increase, for the power supplies, our forecast is flat. First of all, let me talk about the full-year projections on consolidated business and FY March 2019. In conclusion, we don't make any change from that announcements and forecast in April we announced last time. When it comes to that business performance of Q1, as we have just explained so far, first, compared to that assumptions before the Q1, the business performance a little bit exceeded that assumptions and the forecast, but still. When you look at the ICT market trend, which is a big impact on the business, still we see that uncertainty in the ICT markets in the second half. Also we have to think about uncertainty and the trade frictions or the currency.
Taking all this into considerations, I would like to be a little bit more conservative. That's why we stay the same. After when all this, the situation turn out to be more clear, we'd like to revise our forecast for the full-year projections. That's all my presentation. Thank you very much. Thank you.