Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	28,028	25,450	10.1	1)
Operating income	1,631	1,785	(8.6)	2)
Ordinary income	1,905	2,052	(7.2)
Net income	1,181	1,232	(4.1)

Factors
1) Sales
-Sales increased year-on-year. Sales of truck components, the Company's major products, decreased due to the impact of both the slowing Chinese economy and political uncertainty in Thailand. This fall, however, was more than offset by an increase in domestic sales, which is attributable to the economic boost and a rise in consumer spending prior to the consumption tax hike in April 2014.

2) Profits
-Income decreased year-on-year in all three categories. Major reasons for the fall included soaring fuel and materials prices and the impact of the slowing economy in the ASEAN region following the completion of preferential tax treatment program in Thailand.

Outlook for FY ending Mar. 31, 2015

(in millions of JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ending Mar. 31, 2014 (Actual Results)	Rate of Change (%)
Overall
Sales	28,000	28,028	(0.1)
Operating income	1,750	1,631	7.3
Ordinary income	1,750	1,905	(8.1)
Net income	1,000	1,181	(15.3)

>>>Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	121	115	138

-During the fiscal year ended March 2014, the Company spent a total of JPY 121 million on R&D activities. The majority of the amount was spent on developing heat exchanger products in Japan.

R&D Activities

-The Company is continuing to develop products that are in compliance with laws and regulations enacted worldwide, in addition to creating products that meet its customers' needs, carrying out activities that that are eco-friendly and contribute to the enrichment of society. 

-The Company achieved enhancing the performance and reliability, while cutting the costs of, EGR coolers that comply with diesel-engine exhaust-gas regulations and respond to lower fuel-consumption requirements; intercoolers and SCR tanks (urea tanks).

-The Company developed compact and high-performance EGR coolers that will help improve fuel efficiency of hybrid vehicles and gasoline engine cars.

-The Company is developing heat-transfer analysis, structural analysis, and fluidity analysis technologies as fundamental technologies to lower emissions and improve fuel economy. At the same time, it is developing systems based on heat management, working to introduce advanced simulation and testing technologies that make it possible to create optimum systems proposals.

Technology Licensing-out Agreement

(As of Mar. 31, 2014)

Company name	Contract signed on	Contract period
Thai Radiator Mfg, Co., Ltd. (Thailand)	Manufacturing technology for radiators and fuel tanks	May 1, 1982 - Apr. 30, 2015
PT. Selamat Sempurna (Indonesia)	Manufacturing technology for radiators and fuel tanks	Apr. 11, 1979 - Apr. 10, 2015

Capital Investment

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Japan	687	582	689
China	617	518	82
Asia	222	276	-
Overall	1,526	1,377	771

Planned Capital Investment

(As of Mar. 31, 2014)

Company name	Location	Purpose	Planned investment (in million JPY)	Starting Month	Completing Month	Capacity increase on completion
The Company	Kanagawa Pref. Japan	Installing and upgrading equipment at manufacturing facility producing heat exchangers and press dies.	622	Apr. 2014	Mar. 2015	-
Chongqing Tokyo Radiator Co., Ltd	Chongqing, China	Installing at manufacturing facility producing heat exchangers	240	Jan. 2014	Dec. 2014	-
Wuxi TRS Heat Exchanger Co., Ltd.	Wuxi, China	Installing at manufacturing facility producing heat exchangers	1,154	Jan. 2014	Dec. 2014	-