Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	89,383	83,437	7.1	-
Operating income	4,146	4,765	(13.0)	-
Ordinary income	4,689	4,951	(5.3)	-
Net income	2,981	4,248	(29.8)	-
Automotive Heat Exchangers
Sales	43,561	40,259	8.2	-The Company was severely impacted due to various factors that continued to plague its performance, including the flooding in Thailand, the financial instability in Europe causing the economic situation to grow worse, and the high evaluation of the yen. -Sales in Japan of automotive heat-exchangers increased due to heightened demand triggered by eco-car stimulus packages. Sales outside Japan also increased, thanks to strong performance contributed mainly by the North American and Asian operations.

 

Development Outside Japan

<Indonesia>
-The Company will begin to produce radiators for automobiles in Indonesia in the second half of the business year ending March 2013. On the premises of its existing production facilities, the supplier of heat exchange equipment will build a second factory with annual production capacity of up to 200,000 radiators. In the midst of growing sales of vehicles in the Indonesian market, Japanese automakers, including Toyota, Honda and Daihatsu, are vying to boost their production capacity. The Company will deliver locally produced radiators to Japanese-affiliated manufacturers operating in the country to meet their needs for local sourcing. (From an article in the Nikkan Jidosha Shimbun on March 23, 2012)

<North America>
-Sales of EGRs in North America are predicted to increase 30%, and sales of stainless-steel oil coolers by 50%, during the 2013 fiscal year. As a result, in strengthening its R&D functions, the Company plans to set up an R&D center in North America as one step toward responding to this projected increase in business.

Medium-term Management Plan "T.RAD-9" (2010-2013)

(in billions of JPY)

	FY ended Mar. 31, 2012 (Target)	FY ended Mar. 31, 2012 (Result)	FY ending Mar. 31, 2013 (Target)	FY ending Mar. 31, 2014 (T.RAD-9)
Consolidated sales	89.3	89.4	93.5	110.0
Ordinary profit ratio	5.2%	5.2%	5.7%	6.0%

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Japan	1,926	1,890	-
USA	14	9	-
Europe	1	13	-
Asia	15	29	-
China	212	170	-
Total	2,170	2,114	2,016

R&D Structure

Facility	Location
Research and development center	-Aichi, Japan -Kanagawa, Japan
Production engineering development center	-Shiga, Japan -Aichi, Japan
TACO/T.RAD R&D Center	-Pune, India

 
-In July 2011, the Company established a new R&D center in Pune, India.

-The Company is planning to establish an R&D center in North America during the 2013 fiscal year in order to respond to a projected increase in business in the region.

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 research on 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, 2012)

Partner (Country)	Contract	Contract period
PT. Batarasura 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 - undetermined
Quingdao Toyo Heat-Exchanger 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)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Japan (Stand alone)	2,559	-	-
USA	281	-	-
Europe	628	-	-
Asia	1,083	-	-
China	375	-	-
Other	57	-	-
Overall	4,986	2,589	2,910

New Facility Installations

-The planned investment in establishing new facilities and making other improvements is 5,936 million yen, as of Mar. 31, 2012.

Facility (Location)	Equipment to be installed	Planned investment amount (million JPY)	Starting	Planned completion
Hatano Works (Kanagawa, Japan)	Equipment to produce radiators, etc.	657	Jan. 2012	Mar. 2013
Nagoya Works (Aichi, Japan)	Equipment to produce radiators, etc.	936	Nov. 2011	Mar. 2013
Shiga Works (Shiga, Japan)	Equipment to produce radiators, etc.	863	June 2011	Mar. 2013
T.RAD North America Inc. (Kentucky, U.S.A)	Equipment to produce radiators, etc.	915	Jan. 2012	Dec. 2012
Toyo Radiator (Zhongshang) Co., Ltd. (Guangdong, China)	Equipment to produce radiators, etc.	501	Jan. 2012	Dec. 2012
PT. T.RAD Indonesia (Bekasi, Indonesia)	Equipment to produce radiators, etc.	475	Jan. 2012	Dec. 2012
T.RAD (Changshu) Co., Ltd. (Jiangsu, China)	Equipment to produce radiators, etc.	600	Jan. 2012	Dec. 2012