It's on time. We'd like to start the performance briefing of the TDK Corporation on the FY March 2018. First of all, let me introduce our speakers and attendees today. President and CEO, Mr. Shigenao Ishiguro. Senior Vice President, Mr. Hiroyuki Uemura. Senior Vice President, Mr. Noboru Saito. Senior Vice President, Mr. Tetsuji Yamanishi. From Energy Solutions Business Company, CEO, Mr. Fumio Sashida. These are the five attendees from the TDK Corporation today. Thank you very much. We'd like to start with the consolidated results for FY March 2018. Presenter is the Senior Vice President, Mr. Yamanishi. Please.
I'm Yamanishi. Thank you very much for joining us today for our performance briefing of TDK Corporation, FY March 2018. First, I would like to present the consolidated results for the FY March 2018.
First off, these are the points of the briefing. Last year, we have transferred that business for the high-frequency component business. By taking this opportunity, we have tried to transform the business portfolio. In this business environment, still in the five straight years, we have the regular high-end net sales. It has grown by 7.9% year-on-year. When it comes to the operating incomes, JPY 144.4 billion is the gains with the transfer business also included last year. That's why it was declined by 59% year-on-year. When it comes to the impacts of this, the transfer of the high-frequency component business, it has been more than offset by the expansion of the other existing business segments. We could secure the incremental profits.
When it comes to Passive Components business, we have a very good favor business in automotive and industrial equipment. We have a good business with the capacitors, particularly for the MLCC, which has been going well with the high reliability and the redundancy products. It has contributed a lot. It has led the substantial increase of the profits of the Passive Components business. When it comes to the Sensor Application Products, due to the M&A, we have substantially grown the net sales. Still, when it comes to profits, we needed to pay for the one-time acquisition cost. We can lay out the foundations for the future business solutions, including the acquisitions of InvenSense in the chart. We have improved the product portfolios for the future of the market, including the expansion of IoT and other applications.
When it comes to Magnetic Application Products, HDD in the markets, the total demand has been going on based on our forecast. On a volume basis on the HDD head, it has declined. In many ways, that's a major product. When it comes to the product mix, we could observe an improvement. The net sales are a little bit over our forecast. We could secure the stable revenues. When it comes to the power supply products, we could take advantage of the very strong demand in the industrial equipment markets. We could have incremental in the sales as well as the profits with expansion of new products and for the magnets. We are Resources and the focuses are from the HDD and the magnets to the more industrial and the automotive markets.
We'd like to reduce and shrink the deficit and try to make it into that profitable. When it comes to secondary battery, now although we have experienced the volatile market for the smartphone, still, we could flexibly meet the needs of the markets, we could expand the business for the smartphone market. Also, an application other than the smartphone have been steadily growing, in three straight years, we have the regular high operating income as well as the net sales. Next, let me talk about consolidated full-year results for the FY March 2018. The sales was 1,271.7 billion JPY. It was a 7.9% growth, up by 93.4 billion JPY. Operating income was 85.6 billion JPY. It was the 59% decline with the 123.1 billion JPY.
As I mentioned earlier, that's the last year and 144.4 billion JPY of the gains by the transfer business included. We have recognized about 21.2 billion JPY was recognized last year for the impaired asset disposal cost for the structural reform. Excluding all this one time, in fact, actually, we have a 85.5 billion JPY of the operating income. That wasn't for the last year, to compare it to this apple-to-apple basis, now although including the 10.9 billion JPY of InvenSense M&A cost, still, we could secure the positive growth. When it comes to the net income and income before the tax was JPY 89.8 billion, and net income was JPY 63.5 billion, the earnings per share was JPY 5.82.
Assumed foreign exchange rate was JPY 110.93 to the dollar, 2.3% of depreciation with the JPY, and JPY 129.64 to the euro, and 9.0% of depreciation of JPY. In result of that, now we have JPY 5.5 billion and that JPY 6.1 billion in the operating income. These are the impacts due to this foreign exchange. The sensitivity of the foreign exchange is still, one JPY to the dollar will have JPY 1.2 billion of operating incomes, and for the euro, about JPY 200 million is that sensitivities. Next, let me talk about the segment-wise performance. First of all, 7.2% of the declines for that operating income was JPY 43.5 billion. That's a 17.2% decline. For that, 10.6% was the operating income margin.
Even after transfer of the high-frequency component business, now on the value basis, we could not recover this portion of decline, still, when it comes to the profitability, we already have about 10.6% of the margins have already been secured in terms of the profitability. When it comes to the ceramic capacitor, now with the background of that's a very strong demand in the automotive industries, now we still have a favorable business in the automotive markets applications. We have improvements of product mix with the high reliability and redundancy characteristics, now have a substantial increase of that, in productivity, also our profitability over exceeded 10%. When it comes to inductive devices, due to that declining of that demand from the smartphone manufacturers, now we have declined in for the ICT business.
On the other hand, when it comes to automotive markets and industrial robots and the measurement equipment markets, have been steadily increasing, including the major home appliances. When it comes to the high-frequency component business and the continued business and also transferred business, we have lost to that Wi-Fi module business this year since last year. That is why the net sales have declined. The other residual business segment, like ceramic filter, have been increasing in sales and profits. When it comes to piezoelectric components and our business with the automotive and industrial equipment have been booming. On the other hand, the camera module actuator for the Chinese smartphone manufacturers have declined substantially so that we have increased in sales but declined in profitability. Let me talk about the Sensor Application Products business.
Sales was JPY 77.6 billion. Due to that, and the acquisition of InvenSense, we have the 1.8 times as much as the sales. The operating income was JPY 19.4 billion of loss, including the JPY 9 billion of the cost for InvenSense acquisition. The sales for the automotive markets have been an increase for that temperature and the pressure sensors, as well as the magnetic sensors. It was good for Europe and the Japanese market, and have grown by 21%. InvenSense, the MEMS sensor sales will be put and added on it. The TMR sensor in ICT market sales have also increased, so that the total sales of the Sensor Application Products business for the ICT market have over 20%, and we have across 50% of this business. The automotives and industrial equipment is 30%.
It was a very good balanced portfolios in these segments. Let me talk about Magnetic Application Products. Due to the part of the recombinations of the segments. Let me just talk about the business for the sales, JPY 333.2 billion net sales and 1.0% increase year on year. Operating income was JPY 20.9 billion. It was 2.2 times as much as last year, and operating income margin was 6.3%. Now we have recognized about JPY 10 billion for the impaired asset disposal for the part of this restructuring cost. That is why in total, we have JPY 1.2 billion with 6.1% of increase. For HDD head, the volumes have declined by 12% year on year. On the other hand, the head for the nearline have increased, so that now we have improvements of the sales mix. That average selling price have risen.
The total recording device business have only limited it to the 2% of decline. That is due to the effects of the product mix improvements and also consolidations of rare earth bases. We could secure the double-digit operating profit margins, and that profitability is very stable. Excluding JPY 6 billion of the cost for the restructuring last year, the decline of the income was only marginal. As for the magnets, although the sales of HDD magnet have declined, but for the wind power generations, for the industrial robot markets is a new market for the industrial equipped motors. Excluding the JPY 4 billion of that restructuring reform cost of the last year and subtracting this, now we have shrunk that loss in just half from last year, and we have a steady improvement in the progress in the structural reform.
When it comes to power supply and the semiconductor manufacturing equipment and measurement equipment and the robotics market, these all provide a very strong demand, and the net sales have been very steady. On top of that, with the launching of the new products, have contributed a lot for that expansion of the sales. Now we have a double-digit growth of both net sales and net profits we can achieve for that.
Next, Film Application Products. Net sales was JPY 371 billion on a yearly basis. Actually, net sales grew 1.5x and profit became 1.7-fold. With this, now for 3 years in a row, we are able to renew the record high in sales and operating profit, and our OP margin became 19%, contributing to our profit-making foundation. In the smartphone market, the demand fluctuated a lot throughout the year. Against such a backdrop, we are able to now adjust our manufacturing capacity on an appropriate level on a yearly basis, and we're able to now forecast the market needs accurately. Thus, we're able to grow our sales in the smartphone in a big way. At the same time, even in the non-smartphone applications, we had a steady growth. We improved our profit in an efficient manner by having a synergy between volume increase and production efficiency.
Next, I'd like to go through the full year now, actually by segment. I have already now covered in Passive Components and Magnetic Application Products and the Film Application Products. Here now, allow me to explain other products and corporate and the eliminations. Other sales was JPY 52.3 billion or down 76.7% year-over-year, and operating income became negative JPY 2.4 billion. This is an improvement of JPY 4.9 billion from the previous year. While the industrial equipment market showed continuing demand growth, we were able to grow greatly our profit of semiconductor manufacturing equipment, as well as new business and activities. They are the major factors. As for corporate as well as eliminations, due to the increase in development, these two items are showing a slight drop in the operating profit.
Next, I'd like to now go through the analysis of the changes in the operating income, JPY 123.1 billion in profit. What are the factors behind that? JPY 144.4 billion we gained from the transfer business. Excluding that, actually, the structural reform spend was JPY 21.2 billion. In other words, it is going to be JPY 1.1 billion. It is going to be an actual of the performance of JPY 20.1 billion. The sales are actually JPY 3.7 billion, and transfer in the business on an annual basis, actually JPY 370 million. We're able to now absorb these costing factors. We're able to make contributions to the profit. The EPS erosion had a negative impact as much as JPY 32.3 billion, and Asian Aid increased JPY 3.7 billion. Put them together, JPY 36 billion negative factors.
Again, we are able to now absorb those factors and numbers due to the rationalization efforts, JPY 34 billion, and the benefit from the structural reform, JPY 4.3 billion, put them together, JPY 38.3 billion. Also, we had InvenSense acquisition cost of JPY 10.9 billion. We are able to now actually make a growth of JPY 21.3 billion. Moving on, I would like to now go through the factors behind the changes in sales and operating profit by segment from the third quarter to the now fourth quarter. I will now go through the major factors. First, the Passive Components. Sales was down by JPY 2.8 billion or 2.5% from the third quarter. Capacitors grew nicely, thanks to the good business in automotive and the industrial equipment markets.
Inductor devices went down by 2.7% from the third quarter, though we had a good growth in the automotive, but the smartphone went through the production adjustments and pushing down our numbers slightly as a whole. Next, other Passive Components sales. It was down JPY 3 billion or 9.3%. CSAP products and camera module actuators sales for smartphone particularly went down. As for the Passive Components, actually JPY 1 billion and actually showing the decline of 8.1%. Capacitors actually grew and are making a good profit, but inductors actually went down due to the decline in the sales and also the actuators for camera modules due to the major customers in China. In light of the new models on production, again, on the timing, there was a ramp-up on activities, but again, those ramp-up activities actually were taking place in the Chinese New Year.
That had a negative impact upon us. Next, Sensor Application Products. Minus JPY 2.2 billion or down 10.2% in sales. TMR sensors for ICT actually went down greatly, which was the major factor. M&A spend was down by JPY 700 million from the third quarter, but we still had a big negative impact coming from the reduced production of TMR sensors, making the operating income negative figure JPY 4.8 billion. Next, the Magnetic Application Products. Here, the sales went down by JPY 6.2 billion or down 7.1% from Q3. Recording devices and sales, hard disk drive and heads and shipment volume, 89 was an index. Actually, for the fourth quarter, it became 77. But in actuality, it went up to an 84. So it went up to an 84. Vis-a-vis the third quarter, actually, this is a decline by about 5% and JPY 5.3 billion and 8.5% decline.
Other Magnetic Application Products sales actually was down JPY 900 million or 3.7% from Q3. Magnetic products had a strong performance, but HDD magnets declined, unfortunately. Hard disk drive magnets have declined. Power supplies went down slightly because production days were reduced because of the Chinese New Year. Magnetic Application Products and operating income was down JPY 6.7 billion from Q3. In the fourth quarter, we had the consolidation of the locations outside of Japan, JPY 1.1 billion. Also, we had a less number of working days due to the Chinese New Year, and also HDD heads EOL products wafer impact. We decided to go for the numbers and to be booked for a much smaller number. From the Q3 to Q4, actually JPY 24 billion, actually 22.7%. Revenue was down with these numbers.
We experienced big fluctuations in the smartphone demand, pushing our 26%, and non-smartphone sales also slightly went down. They are the major factors behind some of the weak numbers. As for operating income, actually, the operating income was down JPY 20.1 billion, landing at JPY 12.8 billion from Q3's JPY 39.9 billion. Again, major drivers, besides declines in revenue and profit, were Chinese New Year impact on the loss of working days and the materials and price increase. Next. As for the forecast for FY March 2019, of course, Mr. Shigenao is going to present, I know he's going to explain, but do allow me to explain the changes in the segments we are going to have for FY March 2019. In order for us to enjoy synergies in our energy-related business, we created a new organization as of April 1st this year, Energy Solutions Business Company.
Rechargeable batteries used to be in Film Application Products, and power supplies for industrial equipment used to be included in Magnetic Application Products, and the automotive and power supplies used to be included in others, are now merged into this newly created organization. Within these changes, we now have a new name, in lieu of Film Application Products. We now call it Energy Application Products. With this change, last year as well as this year's actuals are now calculated as a part of this new segmentation. I just wanted to share this information with you. This concludes my explanation. Thank you indeed for your kind attention.
I'd like to move on to the consolidated full year projections for FY March 2019 by the President and CEO, Mr. Shigenao Ishiguro. Hi, Ishiguro. Thank you very much for joining us today.
Thank you very much. I'm going to present about the FY March 2019 full year projections. The projections and the foreign exchange rates, for the U.S. Since we just formulated the plan, now that the foreign exchange has just been volatile, these are our assumptions. We assumed about 5% of appreciation, the yen by 5% to the U.S. dollar. The net sales projection is JPY 1.34 trillion. Also for the operating income, this is JPY 85.6 billion to net. We would like to exceed JPY 100 billion next year. This is the milestone target for an operating income.
When it comes, this JPY 100 billion of operating income is that actually this is the new record high operating income for TDK Corporation. First of all, we'd like to clear this target. We are determined to achieve this. JPY 98 billion is the income before tax and JPY 70 billion of net income. The JPY 554.48 is the earnings per share plan and also dividends, and we have JPY 140 of annual dividends with JPY 70 for each of first and second year, and JPY 10 of increase is planned. CapEx will be JPY 210 billion, which will increase it by JPY 30 billion from JPY 178.6 billion from FY March 2018. Actually, in order for the investment for the next mid-term business plan, now we have very intensive discussions, actually, internally.
The next three years, for this is second and third years, we need to make a substantial growth, we need to keep making. We need a substantial CapEx for the basis of the growth. That is why JPY 210 billion is now planned for the budget. The part of the inductor and the capacitor, now and still, some kind of the market is very tight and the supply. The next year, in March 2020, in the plan, it will be front-loaded. That is why we would like to just front-load our plan of the investments already. On top of that, including MLCC, we need to enhance further the products and solutions for the automotive solutions. That is why we introduced that, the new model line, which deployed in the new line in the factory in Akita Prefecture.
The oldest line will be also enhanced, the capacity, in this three years of new mid-term business plan. Also, when it comes to Sensor Application Products, we need to make it efficient, to take advantage of Foundry and EMS. We have to just work together with them. On the other hand, we would like to need to make our own investments, particularly for that magnetic sensors and all these products, we like to do utmost with in-house production, so that we need the investments for enhancing capacity. When it comes to that Magnetic Application Product, we need to also make the investments. When it comes to the head, we need to consolidate the production so far.
Now when it comes to the HDD head, we are looking into the next technologies, the TAMR and the real estate actuators or that new technology, we need to just take advantage of. Particularly, we like to aim at the large capacity storage and nearline storage products. They like to make additional investment for this also. You have a two-lead devices. It will be two or three. If it is the case, now we want to consolidate it in the head, but we need to make additional investment. That will also factor in. Also, energy is the other, investment in battery, it cannot be avoided. When it comes to this in the investments, I am going to talk about the planned net sales.
In March 2018 last year, it has grown substantially and exceptionally booming in the last year. That is why we need to be more aggressive in it. On the other hand, now in order to keep growing, we must make that investments to push up the current momentum. That is why about one third of these values will further be invested on top of this. This is that plan in future. Based on this capital expenditures, now we would like to respond to the demand and the needs of the market. We would like to achieve that in our net sales in the midterm basis.
Here, please allow me to further explain our assumptions on the consolidated revenue change by segment ups and downs. First, the Passive Components. As I have explained this already, FX actually impact is going to be 5% and dollars an actual 5%. Actually, we have to pay additional to that factor. Again, on the first Passive Components, again, we expect it to grow 3%-6%. Of course, from FX, the perspective, of course, we have to aim at the much higher, less than 10%. Automotive markets, again, xEVs and also ADAS, of course, are here to stay as important trends. Again, on CapEx, it's going to be quite important, so that we can actually adapt to these trends. MLCC and inductors and others, of course, are going to be the very important space for us to be quite aggressive in making the investment.
80 billion in the sensor, actually 30% growth is being expected. In other words, we're going to aim at JPY 100 billion. With that point in mind, of course, motion sensor and new portfolio and ultrasonic, the sensors and also the microphone and the audio sensors need to be further expanded. Also, the TMR and automotive sensors need to be further being expanded. We have them in the pipeline already. We're going to be quite aggressive in working on these opportunities going forward. Also for ICT market and also the magnetic sensors, actually already being offered, would like to actually expand the possible applications based upon this technology. Magnetic Application Products are expected to go down Negative. Hard disk drive and HDD heads itself, actually, will not keep growing.
I think bottom materials and growth, I think it is going to have certain limitations. With that point in mind, hard disk drive and HDD heads quantity, I think will go down around by 6%. This is our assumption. Having said that, having some of the technologies, we have got the other day, actually, they have actuation technologies, the metal, the microfabrication, and etching technologies. I think these technologies may help us to find more opportunities in ICT or in the healthcare markets going forward. It's very important for us to keep an eye on these opportunities and also magnets. For automotive application could possible, robotics could be another important industrial application could be quite possible. We'd like to make our best effort so that we can gain real good return on the fruits. Film Application Products. Well, I'm sorry. Energy Application Products, 10% or around.
That's the growth factor we are hoping to get. For March in 2019, actually, we grew probably not too much. Again, as you see here, we are here now to further grow ourselves. The traditional smartphone pouches, on top of them, actually, for PCs, actually, it is growing certainly. We do believe that this is going to further grow, the drones and also the gaming consoles. I think, they will give us further growth factors with the pouch. Also mini cells could be another expectation. I do not smoke. I'm not a smoker. Again, this is going to be used as a part of the e-cigarette and also for the hearing aids. Also, this can be used in the gaming consoles. Also in a power cell, somewhat larger in power, is another area.
We would like to actually move into this somewhat larger power area. As you see here, all in all, JPY 1.34 trillion. This is going to be on our target of profit, JPY 100 billion or higher than JPY 100 billion. That is going to be our aspiration, and we would like to go for these numbers. This concludes my explanations as for the forecast. Again, at 15:00 today, actually, we announced the changes in the Board of Directors. If I'm now allowed to give you highlights. As for the latest announcements, this is going to indicate the new governance schemes we'd like to go for. Out of this governance expectations, we announced this new change.
Being honest with you, since last year and this year, actually, Fair Trade Commission, actually, the cartel issue and others, and also the number of the companies actually have gone up in terms of number through M&A. I'm talking about the increased number of the group companies. Having reached this point, I think we have to pay more attention to the governance, the policies, and rules. The governance rules originally was introduced 10 years ago, now it's time for us to further reinforce our governance schemes. In order for us to further strengthen governance going forward, External Director Makoto Sumita now is going to become the full-time director. He is going to be responsible for governance going forward. We have big expectations with Mr. Sumita in the space of governance. We would like to actually reinforce our governance capabilities.
Again, we have got Corporate Governance Committee as an advisory panel to TDK, Mr. Sumita is going to be the chair of that panel. Mr. Sumita actually was looking at from outside, now he's going to become internal resource. As for the external directors who are now missing, Kazunori Yagi, an Auditor, is going to actually fill up this vacancy. At the same time, Chairman Mr. Kamigama is going to retire from the business and activities. Again, starting from 2006, and for as long as 10 years, he served as the President and CEO, and for the past two years, he served as the Chairman. Actually, he really helped me when I made a transition to the current position. I believe that we have come a long way, and I think Kamigama does appreciate what I have done, what we have done.
I think he believes that it's time for him to retire from the business world. I just wanted to share this background information. Having said that, Mr. Kamigama, when it comes to being on top and the gurus and experts, March in Board of Directors meeting, we actually stopped having this Japanese advisory position. Actually, Mr. Kamigama is going to be given the special Mission Executive, what we call Mission Executive, quote-unquote, particularly energy and application on the space, technology-wise and also making things wise. We have big expectations, and we would like to ask Mr. Kamigama to actually have the full engagement, not as a part of the business matters, but again, me together with Mr. Sumita, I'm going to work in further growth as a strategy, and Mr. Kamigama is going to help us again in this new expected area.
Thank you again for your kind attention. This concludes my explanation. Thank you.