Net sales were ¥1,363.0 billion, down 1.4% year on year.
Impact from worsening ties between the U.S. and China intensified with each passing day heading into the end of 2019, and economic deceleration in China and the rest of the world became clear. In the fourth quarter, economic activity stalled in each country due to the spread of COVID-19, and production of electronics and demand for electronic components were affected more than initially anticipated. As a result, net sales declined 1.4% year on year.
Despite a tough global demand climate throughout the year, sales of Rechargeable Batteries continued to grow by capturing demand in the ICT market from the start of the fiscal year and expanding applications. As a result, Energy Application Products segment sales grew, and net sales reached a new record high.
In the automotive and the industrial equipment markets, which were significantly affected by trade tensions between the U.S. and China, demand was weak and sharply trailed expectations from the start of the fiscal year. This had a substantial impact on sales of many products in the Passive Components segment, as well as conventional sensors in the Sensor Application Products segment in particular. On the other hand, demand was strong in the ICT market and sales to the ICT market increased year on year. Amid growth in demand for 5G applications, sales of Rechargeable Batteries and High-Frequency Components for smartphones and base stations increased to secure higher sales and driving Companywide earnings.
Operating income was ¥97.9 billion, down 9.2% year on year.
Operating income was 97.9 billion yen, down 9.9 billion yen, or 9.2%, year on year. This is primarily attributable to the following factors. First, there was an increase in profits of about 11.5 billion yen due to sales volume growth, despite including negative impact of about 12.0 billion yen from the spread of COVID-19. Next, negative impact of around 15.0 billion yen from reduction in sales prices was absorbed by positive impact of about 19.1 billion yen from rationalization and cost reductions, which, along with benefits of about 1.6 billion yen from restructuring, contributed to increased earnings by strengthening our constitution. Expenses related to the InvenSense acquisition were about 5.4 billion yen for the fiscal year, unchanged from the previous fiscal year. Administration and development expenses in connection with business expansion in Rechargeable Batteries increased by 10.4 billion yen, exchange rate fluctuations had a negative impact of around 3.1 billion yen, and there was an increase of 13.6 billion yen in impairment losses. As a result, the overall decrease in operating income was 9.9 billion yen.
Net income was ¥57.8 billion, down 29.7% year on year.
Net income was ¥578 billion, decreased by ¥24.4 billion or 29.7% year on year.