T.RAD Co., Ltd. Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of Change (%) Factors
Sales 95,248 87,530 8.8 -
Operating income 4,145 2,636 57.2 -
Ordinary income 4,999 3,281 52.4 -
Net income 2,046 915 123.6 -
Automotive Heat Exchangers
Sales 58,390 50,283 16.1 1)

1) Sales Performance of Automotive Heat Exchangers
-Sales of automotive products fell slightly year-on-year due to the end of the eco-car sales incentive program, in spite of strong orders for products used on hybrid and economy cars.

-Sales of automotive products fell slightly year-on-year because of lower demand for products used on military vehicles.

-Sales of automotive products increased year-on-year, thanks to strong sales of vehicle models in the Czech Republic, which the Company supplies products to, after they underwent model changes.

-Sales of automotive products significantly increased year-on-year, thanks to increased orders for products used on motorcycles in Thailand and Indonesia.

-Sales of automotive products increased significantly year-on-year because mass-production of vehicle models, which the company received new orders for, increased; and because orders increased, after they had fallen the year before because of the tense political relations between Japan and China.

Joint Venture

-In 2013, the Company and Tata AutoComp Systems Ltd. (TACO) announced that their India-based joint venture, Tata Toyo Radiator (TTR), has signed a contract with Air International Thermal Systems, a major HVAC supplier, to establish a 50-50 joint venture. Capitalized at approximately JPY 300 million (USD 2.86 million), the new company will construct a plant in Pune, India to produce HVAC systems for Tata Motors. TTR, based in Pune, manufactures aluminum radiators, intercoolers, and heater cores. Customers include Tata Motors, Ashok Leyland, Fiat, Force Motors, and Mahindra & Mahindra. (From a press release on December 19, 2013)


-In 2013, the Company announced that it will transfer its entire 100 percent stake (450,000 shares) in its subsidiary T.RAD Italia S.p.A. to the local management team. The subsidiary manufactures and sells heat exchangers. The transaction is expected to conclude at the end of September 2013 with a sales value of EUR 10 (approximately JPY 1,310). The Company also intends to integrate its European businesses into its subsidiary in the Czech Republic. (From a press release on August 2, 2013)

Medium-term Management Plan "T.RAD-10" (Target: FY ending Mar. 31, 2018)

(in millions of JPY)
  FY ending Mar. 31, 2015
FY ending Mar. 31, 2016
FY ending Mar. 31, 2017
FY ending Mar. 31, 2018
Consolidated sales 97,600 108,000 112,000 120,000
Ordinary profit ratio 4.6% 8.5% 9.5% 10.5%

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


R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Japan 2,648 2,271 1,926
USA 22 23 14
Europe 11 17 1
Asia 77 28 15
China 34 67 212
Total 2,794 2,409 2,170

R&D Facilities

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
North America R&D Center -

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, 2014)
Contract Contract period
PT. Batarasura Mulia
Manufacturing technology for radiators Dec. 2009 - Dec. 2014
Tata Toyo Radiator Ltd.
Manufacturing technology for radiators Jan. 2013 - Dec. 2019
Torc Co., Ltd.
Manufacturing technology for radiators Jan. 2014 - Dec. 2014
Quingdao Toyo Heat-Exchanger Co., Ltd.
Manufacturing technology for aluminum heat exchangers Apr. 2013 - Mar. 2018

Investment Activities

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Japan (parent basis) 2,943 1,972 2,559
USA 1,056 1,146 281
Europe 63 168 628
Asia 1,365 837 1,083
China 1,135 733 375
Other 123 38 57
Overall 6,688 4,897 4,986

Expanded Production Capacity

-The Company will enhance its production capacity of exhaust gas recirculation (EGR) coolers in the Japanese and global markets. By FY2017, it is going to increase the global capacity by 80 percent compared to the FY2013 level. Since EGR coolers make an important contribution to improving the fuel efficiency of gasoline-engine vehicles, the demand for the product is expected to grow significantly worldwide, including emerging countries. Another reason for the significant growth in sales is the expanding use of common parts by automakers to save procurement costs. T.RAD is also aiming to boost sales of its compact, high-performance oil coolers by 150 percent by FY2017. (From an article in the Nikkan Jidosha Shimbun on Jun 4, 2013)

New Facility Installations

-The planned investment in establishing new facilities and making other improvements is 8,110 million yen, as of Mar. 31, 2014.
Equipment to be installed Planned investment amount
(million JPY)
Starting Planned
Hatano Works
(Kanagawa, Japan)
Equipment to produce radiators, etc. 765 Apr.
Nagoya Works
(Aichi, Japan)
Equipment to produce radiators, etc. 720 Nov.
Shiga Works
(Shiga, Japan)
Equipment to produce radiators, etc. 775 Nov.
R&D centers R&D facilities 746 Mar.
T.RAD North America Inc.
(Kentucky, U.S.A)
Equipment to produce radiators, etc. 1,112 Dec.
PT. T.RAD Indonesia
(Bekasi, Indonesia)
Equipment to produce radiators, etc. 964 Jan.
PT. T.RAD (Thailand) Co., Ltd.
(Chachoengsao, Thailand)
Equipment to produce radiators, etc. 655 Dec.
T.RAD (Changshu) Co., Ltd.
(Jiangsu, China)
Equipment to produce radiators, etc. 612 Jan.
(Nizhny Novgorod, Russia)
Equipment to produce radiators, etc. 472 Jan.