T.RAD Co., Ltd. Business Report FY ended Mar. 2018
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2017 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 124,490 | 107,608 | 15.7 | - |
| Operating profit | 5,792 | 3,216 | 80.1 | Profits rose, thanks to strong performance achieved by the subsidiaries in the USA, China, and Asia. |
| Profit before tax | 6,445 | 3,544 | 81.9 | |
| Profit for the year attributable to owners of the parent | 3,691 | 2,022 | 82.6 | -The Company had to post an extraordinary loss to pay settlements involved with prefectural anti-monopoly laws. Nevertheless, income increased year over year because of gains from sales of investment securities and profits from acquisitions in stages of its consolidated subsidiary Qingdao Toyo Heat Exchanger Co.。 |
Factors
Sales at the automotive heat-exchanger business
-Japan: Strong sales of vehicles to which the Company delivers products.
-USA: Launch of production of vehicle models for which the Company received new product orders.
-Europe: Sales fell due to decreases in product orders received in the Czech Republic and Russia.
-Asia: Sales increased, thanks to strong sales of vehicles in Thailand, Indonesia, and Vietnam; to which the Company supplies products
-China: Sales increased significantly because of the launch of production of vehicles for which the Company received new product orders; and because of increased orders from OEMs and sales generated by Qingdao Toyo Heat Exchanger Co., which became a consolidated subsidiary from the third quarter.
Business Developments
-The Company turned Qingdao Toyo Heat Exchanger Co. into a subsidiary in October 2017. It became the third subsidiary in China for the Company, following the ones in Zhongshan and Changshu. This latest plant manufactures and sells automobile and truck heat exchangers to the local Chinese market.
-The Company and Jinya Connect Co. Ltd. both invested to establish T.Rad Connect Co., Ltd. The two companies will leverage their individual strengths, aiming to create new business solutions. T.Rad will contribute its design expertise and production technology on heat exchangers and Jinya Connect will make use of its capabilities to develop cloud applications.
Mid-term Management Plan “T.Rad-11”
-The Company set the following targets for FY2021
- Ordinary profit: JPY 10.5 billion
- Ordinary profit margin: 7.2%
- Sales: JPY 146.0 billion
- ROE: 10.7%
-Increase sales of the highly functional and compact T.Rad Smart Series for the growing market.
-Increase sales of high-performance EGR coolers and motor oil-coolers to respond to the need for better fuel efficiency and vehicle electrification.
Licensing of Technology to Other Companies |
(As of Mar. 31, 2018) |
| Partner (Country) |
Contract | Contract period |
| PT. Batarasura Mulia (Indonesia) |
Manufacturing technology for radiators | Dec. 2014 - Dec. 2019 |
| Tata Toyo Radiator Ltd. (India) |
Manufacturing technology for radiators | Jan. 2013 - Dec. 2019 |
| Torc Co., Ltd. (Thailand) |
Manufacturing technology for radiators | Jan. 2018 - Dec. 2018 |
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Japan | 2,737 | 2,558 | 2,210 |
| USA | 33 | 63 | 64 |
| Europe | 44 | 9 | 81 |
| Asia | 12 | 27 | 46 |
| Total | 2,827 | 2,659 | 2,403 |
Product Development
New EGR Cooler for Ultra-Compact Gasoline Engines
- By employing a tankless design, instead of using the conventional header-less EGR cooler, the Company was able to reduce not only the number of parts used but also costs too.
- Achieved making the cooler even smaller and lighter through a high-density core.
- Developing horizontal design for each TNGA2.5L engine’s specs and destination.
- Increasing deliveries to gasoline-engine vehicles, positioning the cooler as a product in demand to improve fuel efficiency.
- Expanding deliveries in two locations: Japan and North America (North America from fall 2018).
High-performance aluminum water-cooled oil cooler
- The use of a high-performance fan significantly reduced size and weight.
- Product lineup comes in various shapes: round, square, and rectangular.
- Responds to various uses: transmissions, HVs, engine oil
- Increase deliveries in three locations: Japan, China, and North America
Next-generation radiator: T.Rad-Smart (SliM & Advanced Radiator Technology)
- The series fits all sizes of radiators, from motorcycle and compact car up to heavy-duty truck.
- Improving the finned tube enhanced performance and significantly reduced weight.
- Developing an extremely strong material that can be used worldwide.
- Achieved reducing production-line size and energy consumption.
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Japan (parent basis) | 3,619 | 2,358 | 3,380 |
| USA | 1,105 | 1,962 | 2,710 |
| Europe | 433 | 523 | 324 |
| Asia | 495 | 408 | 1,388 |
| China | 198 | 233 | 289 |
| Other | 122 | 67 | 100 |
| Overall | 5,975 | 5,551 | 8,191 |
Planned Capital Investment |
(As of Mar. 31, 2018) |
| Facility (Location) |
Equipment to be installed | Planned investment amount (million JPY) |
Starting | Planned completion |
| Hatano Works (Kanagawa, Japan) |
Equipment to produce radiators, etc. | 767 | May. 2017 | Mar. 2019 |
| Nagoya Works (Aichi, Japan) |
Equipment to produce radiators, etc. | 672 | Sep. 2017 | Mar. 2019 |
| Shiga Works (Shiga, Japan) |
Equipment to produce radiators, etc. | 1,336 | May. 2017 | Mar. 2019 |
| T.RAD North America Inc. (Kentucky, U.S) |
Equipment to produce radiators, etc. | 2,147 | May. 2017 | Dec. 2018 |
| T.RAD (Thailand) Co., Ltd. (Chachoengsao, Thailand) |
Equipment to produce radiators, etc. | 1,028 | Mar. 2018 | Dec. 2018 |
| T.RAD Czech s.r.o. (Unhost, Czech Republic) |
Equipment to produce radiators, etc. | 491 | Jul. 2017 | Dec. 2018 |
| PT. T.RAD Indonesia (Bekasi, Indonesia) |
Equipment to produce radiators, etc. | 157 | May. 2017 | Dec. 2018 |
| T.RAD (Zhongshan) Co., Ltd. (Guangdong, China) |
Equipment to produce radiators, etc. | 148 | Apr. 2017 | Dec. 2018 |
| T.RAD (Vietnam) Co., Ltd. (Hanoi, Vietnam) |
Equipment to produce radiators, etc. | 87 | Dec. 2017 | Dec. 2018 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)