Financial overview

In million JPY	FY2007	FY2006	Rate of change	Remarks
Consolidated
Sales	110,737	96,218	15.1	繝ｻSales increased due to a significant increase in the sales of automotive products mainly as a result of strong exports of main customers and sales of heat exchangers for the construction industry as a result of growing demand in mining in Japan. Outside Japan, the sales of the following products increased in each region: Automotive EGR coolers at the North American subsidiary, motorcycle heat exchangers at Thai the subsidiary, and heat exchangers for air conditioning at Asian and European subsidiaries.
Operating income	3,696	1,402	163.6	繝ｻIncome and profits increased due to the following factors: Profits at the parent company itself increased as a result of sales increases. In addition,   in the construction and industrial machinery sectors, a confused state brought about by launching new products and responding to increased sales of products was settled and as a result, overall cost was reduced. Outside Japan, profit also increased due to strong sales at the Company's subsidiaries in Asia and Europe.
Ordinary profit	4,013	2,109	90.3
Net profit	2,882	1,481	94.6
Automotive Heat Exchangers
Sales	52,534	43,637	20.4	繝ｻAt the parent company itself, sales continued to increase significantly thanks to increased sales of vehicle models destined for export by the Company's main customers, and increased use of EGR coolers and ATF warmers due to high oil prices and environmental requirements. Outside Japan, sales increased at T.Rad North America, Inc., which received new orders for products for passenger vehicles and produced more EGR coolers, and also at T.Rad (Thailand) Co., Ltd.., which promoted mass-production of products for motorcycles.

Overseas business
-The Company established new plants in Indonesia and, under joint management, in Russia.

>>>For details, refer to the section on Investments

R&D Expenditure
-R&D expenses (consolidated) in FY 2007 (ended Mar 2008) were 2,396 million yen. 
-Number of industrial property rights secured by the end of March 2008 was 134.

Manufacture and sales of heat exchangers
1. ) Developing new products and improving existing products
<New business area>
- In the environment-and-energy-related area, the Company developed new products for the fuel cell sector. The Company worked on new products for the sector+ dealing with electric generation systems based on gas from waste materials, and cooling systems for electronic devices.
- Automotive fuel cells: The Company continuously improves products in order to further improve the performance of existing heat exchangers.
<Electronic device cooling area>
- Developing cooling systems for hybrid cars and PCs.
<Current business areas>
- The Company is now working to develop products with higher performance, and which are lighter weight and lower in costs.
- Modularizing and systemizing cooling systems.
- Developing recyclable products and a heat exchanger that improves engine emissions.

2. ) Basic Research
- - -	Basic research on materials and new machining technology Researching stainless steel as a material for use in high temperature heat exchangers Research on nickel solder material, surface treatment, and welding technology
-	Improving efficiency by improving fundamental technology
-	Working on consignment from, and conducting joint-development with, external organization such as universities.

Licensing of technology to other companies (as of March 2008)

Partner	Contract	Contract Period
Indonesia PT.Batarasula Mulia	Manufacturing technology for Radiators	2004.12.16 - 2009.12.15
Pakistan Loads Ltd.	Manufacturing technology for Radiators	2005.10.30 - 2010.10.29
India Tata Toyo Radiator Ltd.	Manufacturing technology for Radiators	2006.01.01 - 2012.12.31
Thailand Torc Co., Ltd.	Manufacturing technology for Radiators	1990.06.08 -
Thailand Alexon Co., Ltd.	Manufacturing technology for Radiators	2003.02.11 - 2008.02.10
Thailand Radicon Co., Ltd.	Manufacturing technology for Radiators	2003.02.11 - 2008.02.10
China Qindao Radiator Co., Ltd.	Manufacturing technology for Radiators	2002.10.29 - 2007.10.28
China Qindao Radiator Co., Ltd.	Manufacturing technology for Radiators	2003.02.14 - 2008.02.13
Taiwan Rising Sun Heat Exchanger Industry Co., Ltd.	Manufacturing technology for Radiators	2005.03.08 - 2013.03.07
China Toyo Heat Exchanger (Qingdao) Co., Ltd.	Manufacturing technology for aluminum heat exchangers	2005.03.31 - 2013.03.31
China Toyo Radiator (Qingdao) Co., Ltd.	Manufacturing technology for Radiators	2005.07.05 - 2010.07.04

Capital investment for FY2007 was 5,451 million JPY.

The Company invested mainly in facilities to produce EGR coolers, one new automotive product that the Company feels it necessary to win new orders for in the future.
- T.RAD Co., Ltd.: 2,407million JPY
- T.RAD North America Inc.: 634million JPY
- T.RAD (Thailand) Co., Ltd.: 1,236million JPY
- T.RAD Czech s.r.o: 979 million JPY

Overseas Investment
<Russia>
The Company announced on June 25 a plan to establish an automotive heat exchanger manufacturing company in Russia in August, jointly with a Russian automotive and aircraft parts manufacturer "Russian Machines systems (RMS)". The new plant will be constructed in the city of Nizhnij Novgorod (ex-Gorkii) and slated to start its operation in 2009. The company will be a fifty-fifty joint venture between T.RAD and RMS, capitalized at probably around 3 billion yen. It plans to produce approximately 300,000 aluminum radiators and heater cores for both passenger and commercial vehicles. (From an article in the Nikkan Jidosha Shimbun on Jun.26, 2007)

<Indonesia>
-Driven by anticipated growth in demand for aluminum heat exchangers in the Indonesian market, the Company has decided to set up a new manufacturing company in Indonesia. The Company plans to establish a new subsidiary, PT. T.RAD INDONESIA, around June 2008 and build a manufacturing facility in the Jababeka Industrial Park, Bekasi. The total investment will be approximately 1 billion yen. The production of motorcycle radiators currently handled by the manufacturing arm in Thailand will be transferred to the new facility in Indonesia. The new plant will also produce aluminum radiators and inter-coolers for motorcycles, passenger cars, and commercial vehicles. The Company is aiming at achieving 1.4 billion yen in sales with an annual production capacity of 480 thousand units at the site in 2010. (From a press release on Apr. 23, 2008)

New Facility Installations

Company Office	Location	Planned investment amount (million JPY)	Starting	Planned completion
Hadano Works	Kanagawa Pref., Japan	1,333	2008.05	2009.03
Nagoya Works	Aichi Pref., Japan	961	2008.12	2009.03
Shiga Works	Shiga Pref., Japan	1,101	2008.11	2009.03
T.Rad North America Co., Ltd.	Kentucky, USA	995	2008.01	2008.12