Net sales were ¥1,479.0 billion, up 8.5% year on year.
The global economy was greatly affected by the resurgence of COVID-19 and the worsening conflict between the United States and China, but demand for electronic components continued to recover due to the gradual resumption of social and economic activities as well as production activities in each country from the second quarter. In particular, demand related to digital transformation (DX) and energy transformation (EX) grew more than initially expected, and we responded by handling surging orders in a timely manner. As a result, net sales increased 8.5% year on year, setting record high.
Orders remained strong for the automotive market, which recovered rapidly during the second quarter. This resulted in an increase particularly in sales of passive components, coupled with the acceleration of the electrification of automobiles, such as xEV and ADAS. As for sales to the ICT market, DX-related demand remained brisk from the beginning of the fiscal year, and sales of rechargeable batteries, passive components, and sensors increased for PCs, tablets, and 5G smartphones. In the industrial equipment market, demand for renewable energy has increased, and the recovery in EX-related demand has become clear.
Operating income was ¥111.5 billion, up 13.9% year on year.
Operating income was 111.5 billion yen, up 13.6 billion yen, or 13.9% year on year. This is primarily attributable to the following factors. There was an increase in income of about 49.3 billion yen due to an increase in sales volumes reflecting the expansion of sales of rechargeable batteries and other products. The negative impact of sales price reductions of about 28.7 billion yen was counteracted by the effects of cost reductions from rationalizing about 26.4 billion yen as well as benefits from restructuring of about 1.9 billion yen. Expenses related to the InvenSense acquisition decreased by about 1.1 billion yen, while selling, general and administrative expenses (SG&A) increased by about 29.0 billion yen due to increases in connection with the business expansion in rechargeable batteries and development expenses reflecting the acceleration of power cell development, as well as the cessation of a filter fee that TDK had been receiving up to the previous fiscal year. Operating income increased by 13.6 billion yen in total, as an impairment loss of about 18.3 billion yen in the previous fiscal year decreased by about 11.0 billion yen year on year to about 7.3 billion yen in the fiscal 2021, profit decreased by about 10.3 billion yen due to one-time expenses for business site restructuring and asset disposal, and profit decreased by about 8.1 billion yen due to exchange rate fluctuations.
Net income was ¥79.3 billion, up 37.2% year on year.
Net income was 79.3 billion yen, increased by 21.5 billion yen, or 37.2% year on year.