T.RAD Co., Ltd. Business Report FY ended Mar. 2020

Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2020	FY ended Mar. 31, 2019	Rate of Change (%)	Factors
Overall
Sales	130,524	136,125	(4.1)	-Sales decreased in all regions, except in the USA and China
Ordinary profit	2,883	5,572	(48.3)	-
Profit for the year attributable to owners of the parent	1,435	1,735	(17.3)	-

Factors
Sales at the automotive heat-exchanger business
-Japan: Decrease year-on-year due to lower sales volumes at OEMs
-USA: Increase year-on-year, thanks to higher sales volumes by customers
-Europe: Increase year-on-year due to the additional production volume in the Czech Republic, which was in response to new orders won for vehicle models that were started to be built.
-Asia: Increase year-on-year in Indonesia due to strong sales of models the Company delivers products to, although orders in Thailand decreased year-on-year.
-China: Increase year-on-year due to sales increases at Japanese OEMs, even though sales at Chinese OEMs decreased.

Licensing of Technology to Other Companies

(As of Mar. 31, 2020)

Partner (Country)	Contract	Contract period
PT. Batarasura Mulia (Indonesia)	Manufacturing technology for radiators	Dec. 2019 - Dec. 2024
Tata Toyo Radiator Ltd. (India)	Manufacturing technology for radiators	Jan. 2020 - Dec. 2026
Torc Co., Ltd. (Thailand)	Manufacturing technology for radiators	Jan. 2020 - Dec. 2020

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2020	FY ended Mar. 31, 2019	FY ended Mar. 31, 2018
Japan	2,612	2,835	2,737
USA	71	55	33
Europe	23	17	44
Asia	34	23	12
China	123	117	-
Total	2,865	3,049	2,827

Product Development

-In the clean-vehicle field, the Company is developing cooling systems that respond to the increasing electrification of hybrid, electric, and fuel-cell vehicles.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2020	FY ended Mar. 31, 2019	FY ended Mar. 31, 2018
Japan (parent basis)	3,395	3,778	3,619
USA	1,613	956	1,105
Europe	205	714	433
Asia	953	935	495
China	857	375	198
Other	154	124	122
Overall	7,177	6,882	5,975

Planned Capital Investment

(As of Mar. 31, 2020)

Facility (Location)	Equipment to be installed	Planned investment amount (million JPY)	Starting	Planned completion
Hatano Works (Kanagawa, Japan)	Equipment to produce radiators, etc.	528	Jul. 2019	Mar. 2021
Nagoya Works (Aichi, Japan)	Equipment to produce radiators, etc.	323	Nov. 2019	Mar. 2021
Shiga Works (Shiga, Japan)	Equipment to produce radiators, etc.	946	Aug. 2018	Mar. 2021
T.RAD North America, Inc. (Kentucky, USA)	Equipment to produce radiators, etc.	1,462	May 2019	Dec. 2020
T.RAD (Thailand) Co., Ltd. (Chachoengsao, Thailand)	Equipment to produce radiators, etc.	540	Feb. 2020	Dec. 2020
PT. T.RAD Indonesia (Bekasi, Indonesia)	Equipment to produce radiators, etc.	398	Jul. 2019	Dec. 2020
T.RAD Czech s.r.o. (Unhost, Czech Republic)	Equipment to produce radiators, etc.	353	Apr. 2019	Dec. 2020
T.RAD (Changshu) Co., Ltd. (Changshu, China)	Equipment to produce radiators, etc.	248	Mar. 2020	Dec. 2020
T.RAD (Zhongshan) Co., Ltd. (Zhongshan, China)	Equipment to produce radiators, etc.	223	Oct. 2019	Dec. 2020