In fiscal year 2021, there were signs of a resumption of economic activity in many countries and regions as progress in vaccinations led to a gradual easing of the severe conditions and stagnation that had been brought on by the emergence of variants of the novel coronavirus (COVID-19). At the same time, economic activity in certain regions was impacted due to lockdowns that disrupted supply chains, and the situation remains unsettled. Furthermore, the escalation of the situation in Ukraine at the end of the fiscal year has led to a destabilization of energy supplies and soaring prices for resources and raw materials. The outlook for the international situation and the global economy is increasingly uncertain.
In this business environment, the Yokogawa Group recorded a year-on-year increase in net sales in fiscal year 2021, mainly due to the impact of exchange rate fluctuations. Conversely, operating income decreased year on year due to factors such as an increase in new business investment, and the recording of an allowance related to the escalation of the situation in Ukraine. Ordinary income and the profit attributable to owners of parent both increased.
The Group is proceeding with initiatives centering on the four basic strategies of the Accelerate Growth 2023 mid-term business plan announced in fiscal year 2021. In a business environment where continual rapid and drastic change is expected, it is a basic premise that the Group's ability to provide significant value will be contingent on it giving proper consideration in its management to environment, social and governance (ESG) factors. Through this ESG management approach, the aim with the Accelerate Growth 2023 plan is to achieve sustainable growth and contribute to society and the environment by structuring our business to address broad social issues. By steadily implementing the mid-term business plan, we will be setting the stage for continued growth and contributing through our business to the realization of a sustainable society.
We aim to fulfill the expectations of all our shareholders and investors by continuing to grow our business and enhance our corporate value. In these endeavors, we ask for your continued support.
President and CEO