Financial Overview

(in millions of JPY)

	FY2010 (ended Mar. 2011)	FY2009	Rate of Change (%)	Factors
Overall
Sales	83,437	65,097	28.2	Looking at sales by industry, automotive sales accounted for 46.8% of the Company's total sales in fiscal year 2010, which ended in March 2011. Looking at sales by product, sales of radiators accounted for 56.6%, those of fan coils accounted for 10.4%, and those of oil coolers accounted for 10.4% of the Company's total sales.
Operating income	4,765	(157)	-	-
Ordinary income	4,951	117	4,131.6	-
Net income	4,248	395	975.4	-
Automotive Heat Exchangers
Sales	39,016	35,402	10.2	Although sales of automotive heat exchangers dropped significantly at the headquarters due to the termination of the Japanese eco-car incentive scheme, consolidated sales largely grew thanks to strong sales to the commercial vehicle and mini vehicle markets. By region, sales decreased in North America, while those in Thailand, Indonesia and China were favorable.

 

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

(in billions of JPY)

	FY2010 (Target)	FY2010 (Result)	FY2011 (Target)	FY2013 (T.RAD-9)
Consolidated sales	73.0	83.4	n/a	110.0
Ordinary profit ratio	4.3%	5.9%	n/a	6.0%

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

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Japan	1,890	-	-
U.S.A	9	-	-
Europe	13	-	-
Asia	29	-	-
China	170	-	-
Total	2,114	2,016	2,490

R&D Structure

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

 

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, 2011)

Partner (Country)	Contract	Contract period
PT. Batarasula Mulia (Indonesia)	Manufacturing technology for radiators	Dec. 2009 - Dec. 2014
Tata Toyo Radiator Ltd. (India)	Manufacturing technology for Radiators	Jan. 2006 - Dec. 2012
Torc Co., Ltd. (Thailand)	Manufacturing technology for radiators	Jun. 1990 -
Toyo Heat Exchanger (Qingdao) Co., Ltd. (China)	Manufacturing technology for aluminum heat exchangers	Mar. 2005 - Mar. 2013
JHS Taigene Pvt. Ltd. (India)	Manufacturing technology for motors	Aug. 2009 - Aug. 2012

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	2,589	2,910	6,748

The Company made the following investments, mainly in production facilities to respond to the new orders received in FY2010.
-The Company: 2,115 million JPY
-T.RAD (Thailand) Co., Ltd. (Thailand): 208 million JPY
-PT. T.RAD Indonesia (Indonesia): 94 million JPY

New Facility Installations

(As of Mar. 31, 2011)

-The planned investment in establishing new facilities and making other improvements is 4,363 million yen for FY2011.

Facility (Location)	Equipment to be installed	Planned investment amount (million JPY)	Starting	Planned completion
Hatano Works (Kanagawa, Japan)	Equipment to produce radiators, etc.	631	Oct. 2010	Mar. 2012
Nagoya Works (Aichi, Japan)	Equipment to produce radiators, etc.	724	Mar. 2010	Mar. 2012
Shiga Works (Shiga, Japan)	Equipment to produce radiators, etc.	651	Mar. 2011	Mar. 2012
T.RAD North America Inc. (Kentucky, U.S.A)	Equipment to produce radiators, etc.	557	Jan. 2011	Dec. 2011
Toyo Radiator (Zhongshang) Co., Ltd. (Guangdong, China)	Equipment to produce radiators, etc.	335	Jan. 2011	Dec. 2011