Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	65,097	90,627	(28.2)	-Looking at sales by industry, automotive sales accounted for 54.4% of the Company's total sales in fiscal year 2009, which ended in March 2010. -Looking at sales by product, sales of radiators accounted for 57%, those of air-conditioner heat exchangers accounted for 14%, and those of oil coolers accounted for 9% of the Company's total sales.
Operating income	(157)	(990)	-	-
Ordinary income	117	(1,532)	-	-
Net income	395	(4,078)	-	-
Automotive Heat Exchangers
Sales	35,402	43,090	(17.8)	-In Japan, sales decreased substantially year-on-year due to the Company's customers reducing their current supply of inventories in the first half of the fiscal year. This was in spite of the increase in sales resulting from tax incentives given to consumers who bought eco-cars. Outside Japan, although the Company's subsidiaries, Qingdao Toyo Heat Exchanger Co., Ltd. in China and T.RAD Czech s.r.o in Europe, enjoyed strong sales, sales decreased at TRAD North America, Inc. due to sluggish sales of SUV vehicles in North America. As a result, total sales for the year decreased.

 

Medium-term Management Plan "T.RAD-9"

(in billions of JPY)

	FY2009 (Result)	FY2010	FY2013 (T.RAD-9)
Consolidated sales	65.1	73.0	110.0
-Outside Japan	17.7	22.0	43.5
-Japan (non-consolidated)	47.4	51.0	66.5
Consolidated ordinary income ratio	0.2%	4%	6%
ROE	1.6%	7%	12%

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

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	2,016	2,490	2,396

R&D Structure

Facility	Location
Research and development center	Aichi, Japan
Research and development center	Kanagawa, Japan
Production engineering development center	Shiga, Japan

 

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	2,016	2,490	2,396

R&D Activities

1. Developing new products and improving existing products
<New business area>
-The Company develops cooling systems for hybrid vehicles, electric vehicles and fuel-cell vehicles in the green-car area.

<Current business areas>
-The Company works to further improve the performance and reduce the size and weight of its existing products, as well as to develop lower cost products. The Company also works to modularize and systemize its cooling system products and develop recyclable products and heat exchangers that improve engine exhaust emissions and fuel economy.

2. Basic Research
-The Company is conducting basic researchon materials and new processing technologies. It is especially focused on stainless-steel materials for heat exchangers, nickel brazing filler metals, surface-treatment methods, and joint-connecting technology.

Licensing of Technology to Other Companies

(As of Mar. 31, 2010)

Partner (Country)	Contract	Contract period
PT.Batarasula Mulia (Indonesia)	Manufacturing technology for radiators	Dec. 2009 - Dec. 2014
Loads Ltd. (Pakistan)	Manufacturing technology for radiators	Oct. 2005 - Oct. 2010
Tata Toyo Radiator Ltd. (India)	Manufacturing technology for Radiators	Jan. 2006 - Dec. 2012
Torc Co., Ltd. (Thailand)	Manufacturing technology for radiators	Jun. 1990 -
Rising Sun Heat Exchanger Industry Co., Ltd. (Taiwan)	Manufacturing technology for radiators	Agreement was terminated when the Company sold its shares in Rising Sun in Sep. 2009.
Toyo Heat Exchanger (Qingdao) Co., Ltd. (China)	Manufacturing technology for aluminum heat exchangers	Mar. 2005 - Mar. 2013
Toyo Radiator (Qingdao) Co., Ltd. (China)	Manufacturing technology for radiators	Jul. 2005 - Jul. 2010

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	2,910	6,748	5,451

The Company made the following investments, mainly in production facilities to respond to the new orders received in FY2009.
-The Company: 1,778 million JPY
-T.RAD (Thailand) Co., Ltd. (Thailand): 523 million JPY
-PT. T.RAD Indonesia (Indonesia): 239 million JPY
-TRM LLC (Russia): 189 million JPY

New Facility Installations

(As of Mar. 31, 2010)

-The planned investment in establishing new facilities and making other improvements is 4 billion 300 million yen for FY2010.

Facility (Location)	Equipment to be installed	Planned investment amount (million JPY)	Starting	Planned completion
Hatano Works (Kanagawa, Japan)	Equipment to produce radiators, etc.	548	Oct. 2009	Mar. 2011
Nagoya Works (Aichi, Japan)	Equipment to produce radiators, etc.	703	Mar. 2010	Mar. 2011
Shiga Works (Shiga, Japan)	Equipment to produce radiators, etc.	885	Jan. 2010	Mar. 2011
T.RAD (Thailand) Co., Ltd. (Chachoengsao, Thailand)	Equipment to produce radiators, etc.	473	Jan. 2010	Dec. 2010
Qingdao Toyo Heat Exchanger Co., Ltd. (Guangdong, China)	Equipment to produce radiators, etc.	330	Jan. 2010	Dec. 2010