To begin, I would like to thank you for your support of GS Yuasa.
Here, I would like to discuss the Company' s operating performance for the fiscal year ended March 31, 2017, and the outlook for the upcoming fiscal year.
This year is the 100th anniversary of establishment of Japan Storage Battery Co., Ltd., and next year marks the centennial of the establishment of Yuasa Corporation, both of which are GS Yuasa' s predecessors. Now in the second year of our fourth Mid-Term Management Plan, rather than remaining unduly wedded to past customs we are undertaking initiatives to establish a new revenue structure and honing our ability to develop advanced technologies, achieve low-cost production and respond to risks. We are working to establish GS Yuasa anew as an energy device company as we look forward to the next 100 years.
During the fiscal year ended March 31, 2017, the GS Yuasa Group recorded consolidated net sales of \359,605 million, down \6,004 million, or 1.6% year on year. At the end of the second quarter, we converted the lead-acid battery business of Panasonic Corporation into a consolidated subsidiary. Although these sales contributed to the Group' s performance, sales in the Overseas Operations segment declined, mainly due the impact of higher yen exchange rates.
In terms of profitability, operating income totaled \23,106 million for the fiscal year, an increase of \1,197 million, or 5.5%, compared with the previous year. Although yen appreciation affected results, changes in the demand environment for automotive batteries and lower costs bolstered profitability. While equity in earnings of equity-method affiliates declined due to the amortization of goodwill for overseas equity-method affiliates, the foreign exchange loss declined due to yen depreciation at the end of the fiscal year. Profit attributable to owners of parent totaled \12,229 million (\699 million before goodwill amortization), a year-on-year increase of \3,198 million, or 35.4%, due to declines in the loss on liquidation of consolidated subsidiaries and impairment losses. The fiscal year ending March 31, 2018, marks the second year of our fourth Mid-Term Management Plan, and will be an important year in terms of generating results. We will leverage the technologies we have accumulated to date to continue delivering the value and product quality our customers require.
In the automotive batteries business, we stepped up efforts in response to increasingly severe competition, working to optimize manufacturing locations and curtail costs in Japan and overseas. In the overseas market, which is expected to continue growing, we will respond to rising demand and increasingly diverse needs in Asia and other emerging markets and work to expand our business domain.
In the industrial batteries business, we revised our cost structure and strove to optimize our organization for our existing Japan business, working to improve profitability in a market that is unlikely to grow. Meanwhile, we will respond to growing demand in the overseas communications market and needs for various types of infrastructure by putting in place optimal production and sales structures.
In the lithium-ion batteries business, we will respond to growing demand for batteries for automobiles. In addition, we will engage in proactive efforts to make proposals aimed at capturing demand for various industrial applications. We have accumulated expertise in the market application of next-generation products, including in the field of manned research submersibles and the field of outer space. We will focus on research and development in basic technologies in order to cultivate these growth fields further.