Net sales in the Business Technologies Business rose 25% year on year. Even after factoring out foreign exchange, that is still a gain of 8%. In particular, sales in the production print field, a growth area, were up 39% year on year. That was a higher growth rate than the business as a whole. Operating income roughly doubled to ¥63.9 billion. Even after factoring out foreign exchange, operating income grew by 20%.
The right side of the page shows the change in operating income. Aside from the foreign exchange effect, sales volume was up and we cut manufacturing costs, allowing the field to absorb its higher costs. Price changes negatively impacted operating income by ¥3.3 billion. To enhance our gross income ratio, we concentrated on selling mid- and high-speed color printers of high added value instead of high volumes of low-speed printers. This sales strategy was effective. We achieved ¥8.1 billion in manufacturing cost reductions. One reason is that we resolved the impact from production site reorganization in fiscal year 2012. We also took a number of measures to improve productivity, cut procurement costs, and more. As a result, we were able to meet our original plan.
The right side of the page shows the change in operating income. Aside from the foreign exchange effect, sales volume was up and we cut manufacturing costs, allowing the field to absorb its higher costs. Price changes negatively impacted operating income by ¥3.3 billion. To enhance our gross income ratio, we concentrated on selling mid- and high-speed color printers of high added value instead of high volumes of low-speed printers. This sales strategy was effective. We achieved ¥8.1 billion in manufacturing cost reductions. One reason is that we resolved the impact from production site reorganization in fiscal year 2012. We also took a number of measures to improve productivity, cut procurement costs, and more. As a result, we were able to meet our original plan.