Net sales were ¥1,902.1 billion, up 28.6% year on year.
The supply chain constrains in components procurement continued and the production volume of automobiles and smartphones remained sluggish due to the resurgence of the COVID-19 pandemic and concerns over political conflicts such as the tensions between the U.S. and China. On the other hand, as a result of the normalization of social and economic activities and the recovery of production activities, demand for electronic components remained robust. Consequently, net sales increased in all segments. Our earnings structure became more balanced and profitability increased as profit of the Passive Components business expanded and the Sensors business achieved profitability.
Although automobile production has been affected by the constraints in supply of semiconductors and other components, sales to the automotive market remained brisk on the back of an increase in the number of components installed per vehicle and stockpiling by customers. As for the ICT market, while production of smartphones was below the initial forecast, demand for PCs and tablets remained brisk. In addition, investment in data centers picked up and demand for servers increased. Demand related to the industrial equipment market remained robust due to strong capital expenditures.
Operating income was ¥166.7 billion, up 49.4% year on year.
Operating income was 166.7 billion yen, up 55.1 billion yen, or 49.4% year on year.
This is primarily attributable to the following factors. First, there was an increase in profit of 89.5 billion yen attributable to an increase in sales, reflecting increased sales and profit of Passive Components, profitability achieved by Sensors, and a recovery in profit of HDDs, despite the negative effects of soaring material prices for Rechargeable Batteries and other products. While the negative impact of the reductions in sales prices remained minimal, there was an increase in profit of 28.9 billion yen in total as a result of rationalization and cost reduction as well as the benefits from restructuring during the fourth quarter of the previous fiscal year, which boosted profitability.
On the other hand, SG&A expenses increased by 64.5 billion yen. This was owing primarily to the impact of an increase in royalty fees related to Rechargeable Batteries of about 15.0 billion yen, an increase in sales expenses in line with the expansion of sales of Passive Components, an increase in global logistics costs due to COVID-19, and an increase in expenses due to the expansion of the power cell pack business in Rechargeable Batteries. One-time expenses including restructuring recorded in the fourth quarter decreased by 8.0 billion yen from 17.6 billion yen of the previous fiscal year to 9.6 billion yen, and exchange rate fluctuations had a positive impact of 6.9 billion yen due to the depreciation of the yen. As a result, the overall increase in operating income came to 55.1 billion yen.
Net income was ¥183.6 billion, up 131.4% year on year.
Net income was 183.6 billion yen, increased by 104.3 billion yen, or 131.4% year on year.
*TDK has voluntarily adopted International Financial Reporting Standards (IFRS) in place of U.S. GAAP for its consolidated financial statements for the fiscal 2022.
On IFRS basis, operating profit was ¥166.8 billion, up 49.2% year on year.
Net profit attributable to owners of parent was \131.3 billion, up 75.8% year on year.
Net income under U.S. GAAP includes gain on valuation of investment securities of 60.2 billion yen.