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We would like to present our financial results using the presentation material titled Financial Highlights for fiscal year 2017 third quarter.
Please turn to Page 1. Net sales stood at JPY 2,695,800,000,000, increased by 7.2% year-on-year. Operating income, JPY 252.1 billion, up by 20.4%. Ordinary income, JPY 254 billion, up by 20.8%. And net income attributable to owners of the parent, JPY 175.4 billion, up by 23.4%. On a record-high level in third quarter, net sales, operating income and other income grew for the eighth consecutive year, and net income grew for the sixth consecutive year.
Earnings per share were JPY 264.17, up by 23.3% year-on-year. The bottom half shows an overview of our group company. The number of companies was 304 for the group as a whole at the end of December 2017.
Page 2 illustrates our analysis of factors for changes in net sales and operating income. The top half shows analysis of factors contributing to an increase in net sales, which grew JPY 181.2 billion year-on-year. Major factors are as follows: sales in the Rental Housing business segment increased JPY 34.3 billion; the Commercial Facilities business segment increased JPY 28 billion; the Logistics, business & corporate facilities business segment increased JPY 40.4 billion; the inclusion of Stanley-Martin, as consolidated subsidiary in this fiscal year, increased JPY 41.9 billion; the Energy business increased JPY 18.2 billion; and the condominium in Changzhou and Wuxi in China and Summer Hill project in Australia increased JPY 13 billion. Other sales increased JPY 40.9 billion. Main factors in other sales are sales in the Single-Family Houses business segments increased JPY 2.8 billion, the Condominiums business segment increased JPY 3.8 billion, and Existing Home business segment increased JPY 3.2 billion and others.
Sales of development properties decreased JPY 9.7 billion due to the sale of a large property project already in the previous fiscal period.
Next, the bottom half shows factors contributing to the increase in operating income, which grew JPY 42.7 billion year-on-year. Top line growth brought a JPY 38.9 billion increase, an increase gains of sales of development properties contributed JPY 24.3 billion. Selling, general and administrative expenses increased JPY 20.6 billion.
Page 3 and 4 show the profit and loss summary. We already reported numbers earlier. And operating income margin improved 1.1 percentage point year-on-year from 8.3% to 9.4%. Major companies contributing to sales increase are: Daiwa House, on a nonconsolidated basis, by JPY 77.9 billion year-on-year; Daiwa Living Group by JPY 37.7 billion; and Fujita group by JPY 15.8 billion, among others.
Major companies contributing to operating income increases are: Daiwa House, on a nonconsolidated basis, by JPY 40.3 billion year-on-year; Stanley-Martin by JPY 3 billion; and Daiwa Royal group by JPY 1.9 billion, among others.
Please turn to Page 4. Selling, general and administrative expenses in the second table increased JPY 20.6 billion year-on-year, of which JPY 11.4 billion was due to higher personnel cost resulting partly from 2,300 increase in employees compared to the end of December 2016.
Next, let us touch on the balance sheet. Please look at the top table on Page 5. Total assets increased JPY 396.8 billion since the end of March 2017 to JPY 3,952,700,000,000. Current assets stood at JPY 1,639,600,000,000, up by JPY 234.4 billion, mainly due to inventory growth.
Noncurrent assets stood at JPY 2,313,100,000,000, up by JPY 152.4 billion. Total inventory, showed in the bottom left, stood at JPY 768.5 billion, up by JPY 144.2 billion. In the Condominiums business segment, land for sale increased JPY 21.1 billion and buildings for sale increased JPY 17.7 billion. In overseas business, land for sale increased JPY 41.1 billion and buildings for sale increased JPY 7.6 billion, mainly due to the inclusion of Stanley-Martin as our consolidated subsidiary.
Total property, plant and equipment, in the bottom right, increased JPY 125.9 billion, on the back of steady progress and investment in real estate development and so on.
Page 6 states liabilities and net assets. Liabilities stood at JPY 2,488,900,000,000, increased by JPY 262.9 billion since the end of March 2017. Net assets were JPY 1,463,800,000,000, up by JPY 133.9 billion. Interest-bearing liabilities, shown in the bottom table, increased JPY 300 billion to JPY 940.7 billion at the end of December 2017 to meet [strong demand] for investment in real estate and mergers and acquisitions and also physical influence in others. Debt equity ratio stood at 0.66. Net assets ratio was 36.2%.
Page 7 illustrates sales and operating income by segment. The top half shows sales due to a JPY 29.4 billion decrease in sales of development properties. Sales of the Logistics business and corporate facilities business segment decreased JPY 14.9 billion. The increases in operating income are as follows: the Single-Family Houses business segment, up by JPY 6.6 billion; the Rental Houses business segment, up by JPY 11.5 billion; the commercial facilities business segment, up by JPY 11.6 billion; and the Logistics, business & corporate facilities business segment, up by JPY 7.8 billion.
In addition to the 3 segments acting as growth drivers, the Single-Family Houses business segment also contributed to income growth. A JPY 9.9 billion increase in the Other Businesses segment mainly consists of energy business, the city hotel business, Stanley-Martin, sale of real estate in the U.S., condominiums business in China and Australia.
Page 8 shows sales, gross profit and gross profit ratio of each segment by category. Construction, rental management and sales of development properties. The sales and gross margin of sales of development properties at fiscal year 2017 third quarter stood at JPY 83.7 billion and JPY 44.5 billion, respectively.
Page 9 states the breakdown of investment real estates. The book value of investment real estates was one JPY 1,250,000,000,000 at the end of December 2017, increased by JPY 98.6 billion since the end of March 2017. The book value of real estates available for sale was JPY 678.8 billion, of which properties being rented were JPY 204.5 billion, and not being rented, JPY 474.2 billion.
The breakdown of real estates available for sale by type is indicated in the top right. Logistics, business & corporate facilities were worth JPY 512 billion, up by JPY 90.8 billion since the end of March 2017 and continue to be our core investment. The bottom table shows the breakdown of rented real estates available for sale. Rented profit-earning real estates and NOIL. NOIL of real estates available for sale was 6.5%, down by 0.7 percentage points compared to the end of March 2017, mainly impacted by the start of operations of new properties and others. NOIL of profit-earning real estates was 11.9%, improved by 0.3 percentage point compared to the end of March 2017.
From Page 10, earnings forecast for the fiscal year ending March 2018 are presented. There has been no revisions to the earnings forecast announced in November 2017. Page 11 shows sales and operating income by segment. Also, they had no revision from November 2017. Page 12 shows sales, gross profit and gross profit ratio of its segment by category. Construction, rental management and sales of development properties. Page 13 and 14 shows Daiwa House's result and forecast of orders received and sales by segment on a nonconsolidated basis for this fiscal year. There have been no revision to the earnings forecast announced in November 2017.
Page 15 illustrates the progress of the investment plan in the top table. In the 9-month period, we invested JPY 169.1 billion for real estate development, JPY 54.5 billion for general capital investments and JPY 35.2 billion for mergers and acquisition. We invested a total of JPY 258.9 billion. Cumulative investments standing stands at JPY 449.8 billion, out of JPY 700 billion spent for real estate development during the 3-year fixed medium-term management plan. Our cash flow stands as shown in the consolidated statement of cash flows in the bottom table.
Please turn to Page 16. The top table shows the management of units and occupancy rates of the Rental Housing business. Management of units was 536,364, including 498,784 locked on contracted units. Occupancy rates at the end of December 2017 was 95%, down by 0.1 percentage point compared to the end of December 2016. The middle part shows the stock of completed condominium, which was 371 units, including 17 units with orders recognized at the end of December 2017. The bottom table shows the number of condominium units managed, which stood at 351,000 paying units at the end of December 2017.
Page 17 illustrates the progress of the overseas business. The top table shows the balance of our cumulative investment with JPY 172.6 billion at the end of December 2017. The bottom table indicates the sales status of the overseas condominium business. In China, sales of 3 condominium projects have been progressing steadily. In Australia, 2 projects are currently in progress, sales also have been progressing steadily. In Vietnam, the contract ratio of first stage of Mid-Town Project was 99.3%. Its second stage construction has started as scheduled in October 2017. This completes the presentation.