T.RAD Co., Ltd. Business Report FY2012

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 Rate of Change (%) Factors
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

-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
FY ended Mar. 31, 2012
FY ending Mar. 31, 2013
FY ending Mar. 31, 2014
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)
Contract Contract period
PT. Batarasura Mulia
Manufacturing technology for radiators Dec. 2009 - Dec. 2014
Tata Toyo Radiator Ltd.
Manufacturing technology for Radiators Jan. 2006 - Dec. 2012
Torc Co., Ltd.
Manufacturing technology for radiators Jun. 1990 - undetermined
Quingdao Toyo Heat-Exchanger Co.,Ltd.
Manufacturing technology for aluminum heat exchangers Mar. 2005 - Mar. 2013
JHS Taigene Pvt. Ltd.
Manufacturing technology for motors Aug. 2009 - Aug. 2012

Investment Activities

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