The Company's gross income ratio was 49.2% against net sales of ¥1,011.8 billion, the second-highest value of that ratio since the integration of Konica Corporation and Minolta Co., Ltd. This resulted in operating income of ¥66.2 billion, for an operating profit ratio of 6.5%.
Although the ratio of SG&A expenses to net sales was high at 42.7%, those outlays were incurred to enable aggressive implementation of the TRANSFORM 2016 business plan going forward. SG&A expenses incurred at this point in time with an eye toward achieving targets of the FY2016 Medium Term Business Plan will play a part in enabling steady sales growth and new businesses creation. Moreover, the ratio of SG&A expenses to net sales is poised to decrease over the medium term as we work to streamline the structure of our existing operations.
This slide contains two ROE figures, one showing net income divided by average equity, and the other showing net income divided by average shareholders' equity. The Company generated ¥47.4 billion in free cash flows (FCF). Despite our outlook of ¥30.0 billion provided at the end of 3Q, FCF ended the year at ¥47.4 billion given sufficient capacity of the Company to generate free cash flows. This compares with ¥34.2 billion at the end of the previous fiscal year.
Although the ratio of SG&A expenses to net sales was high at 42.7%, those outlays were incurred to enable aggressive implementation of the TRANSFORM 2016 business plan going forward. SG&A expenses incurred at this point in time with an eye toward achieving targets of the FY2016 Medium Term Business Plan will play a part in enabling steady sales growth and new businesses creation. Moreover, the ratio of SG&A expenses to net sales is poised to decrease over the medium term as we work to streamline the structure of our existing operations.
This slide contains two ROE figures, one showing net income divided by average equity, and the other showing net income divided by average shareholders' equity. The Company generated ¥47.4 billion in free cash flows (FCF). Despite our outlook of ¥30.0 billion provided at the end of 3Q, FCF ended the year at ¥47.4 billion given sufficient capacity of the Company to generate free cash flows. This compares with ¥34.2 billion at the end of the previous fiscal year.