Consolidated Financial Results for the Fiscal Year Ended March 31, 2019(J-GAAP)May 16, 2019
Company name: T.RAD Co., Ltd.
Listing: Tokyo Stock Exchange, First Section
Code No.:
7236
URL: http://www.trad.co.jp
Representative: Tomio Miyazaki, President & COO
Norio Kanai, Managing Executive Officer,
Contact:
Tel:+81-3-3373-1101
Finance & Accounting Dept.
Scheduled date of the Ordinary General Meeting of Shareholders: June 26, 2019
Scheduled date of filing of securities report:
June 26, 2019
Scheduled date of start of dividend payments:
June 27, 2019
Supplemental materials prepared for consolidated financial results: None
Briefing on consolidated financial results: Yes(Amounts less than one million yen have been truncated)

1. Consolidated Financial Performance for the Fiscal Year Ended March 31, 2019
(April 1, 2018 to March 31, 2019)(1) Consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales

Operating income

Millions of yen% Millions of yen

Fiscal year ended
136,125
9.4
5,092
March 31, 2019
Fiscal year ended
124,490
15.7
5,792
March 31, 2018
Note: Comprehensive income
Fiscal year ended March 31, 2019: ¥-8 million
Fiscal year ended March 31, 2018: ¥4,189 million
Net income per
share

Ordinary income% Millions of yen

Profit attributable toowners of parent% Millions of yen
%

-12.1

5,572

-13.6

1,735

-53.0

80.1

6,445

81.9

3,691

82.6

―%
―%

Diluted net
Ordinary income Operating income
Return on
income per share shareholders’ equity
to total assets
to net sales

Yen

Yen

Fiscal year ended
218.01―March 31, 2019
Fiscal year ended
463.77―
March 31, 2018
Reference: Equity earnings (losses) of affiliates
Fiscal year ended March 31, 2019: ¥196 million
Fiscal year ended March 31, 2018: ¥337 million

%

%

%

3.9

6.0

3.7

8.6

7.4

4.7

Note: We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. Net income per share and Diluted net income pershare are calculated on the assumption that the consolidation of shares was conducted at beginning of the previous consolidated fiscal year.

(2) Consolidated financial position
Total assets
Millions of yen

Net assets

Equity ratio

Net assets per share

Millions of yen%

Yen

46,17047.4

5,537.37

46,63948.1

5,635.91

Fiscal year ended
92,929March 31, 2019
Fiscal year ended
93,320March 31, 2018
Reference: Shareholders’ equity
As of March 31, 2019: ¥44,072 million
As of March 31, 2018: ¥44,861 million

Note: We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. Net assets per share is calculated on theassumption that the consolidation of shares was conducted at beginning of the previous consolidated fiscal year.

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvestment activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

8,558(6,387)71

13,826

9,202(4,422)749

11,965

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 20181

2. Dividends
1Q
Yen

Dividends per Share
Year2Q
3Q
End
Yen

Yen

Total

Total Dividends
Paid (Annual)(Consolidated)

Yen

Millions of yen%

Yen

Payout Ratio

Dividends per
Net Assets(Consolidated)%

Fiscal year ended
―
―
―
3.00
60.00
716
19.4
1.7
March 31, 2018
Fiscal year ended
―
―
40.00
50.00 90.00
716
41.3
1.6
March 31, 2019
Fiscal year ending――
March 31, 2020
40.00
50.00 90.00
39.8(Forecast)
We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. The amount of theyear-end dividends per share for the fiscal year ended March 31, 2018, is described taken consolidation of shares into
consideration, and annual dividends per share is described as “―.” The annual dividends per share which is converted
by the basis after consolidation of shares for the fiscal year ended March 31, 2018, is 90 yen.

3. Forecast of Consolidated Financial Performance for the Fiscal Year Ending March 31, 2020
(April 1, 2019 to March 31, 2020)(Percentage figures indicate changes from the same period of the previous year)
Net
Profit attributable to
Net sales
Operating income
Ordinary income
income perowners of parent
shareMillions ofMillions ofMillions ofMillions of
%
%
%
%
Yen
yen
yen
yen
yen
nd
2 Quarter ending
69,2002.4
2,100 -31.7
2,400
-27.2
1,300 -15.6
163.33September 30, 2019
Fiscal year ending
139,200
2.3
4,100 -19.5
4,600
-17.4
1,800
3.7
226.15
March 31, 2020
4. Other(1) Changes in significant subsidiaries during the period (changes in specific subsidiaries resulting in changes inthe scope of consolidation): None
(2) Changes in accounting principles, procedures, presentation methods
1) Changes associated with revision of accounting standards: None
2) Changes other than 1): None
3) Changes accounting estimation procedures: None
4) Changes in presentation methods: None
(3) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding at end of year (including treasury stock)
As of March 31, 2019: 8,344,405 shares
As of March 31, 2018: 8,344,405 shares
2) Number of shares of treasury stock at end of period
As of March 31, 2019: 384,960 shares
As of March 31, 2018: 384,514 shares
3) Average number of shares outstanding during the period
Fiscal year ended March 31, 2019: 7,959,670 sharesFiscal year ended March 31, 2018: 7,960,893 shares
Note: We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. Number of shares issued and outstanding at end ofyear, Number of shares of treasury stock at end of period and Average number of shares outstanding during the period are calculated on theassumption that the consolidation of shares was conducted at beginning of the previous consolidated fiscal year.

2

(Reference) Summary of Non-consolidated Financial Performance
1. Non-consolidated Financial Performance for Fiscal Year Ended March 31, 2019
(April 1, 2018 to March 31, 2019)(1) Non-consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales
Operating income
Ordinary income
Net income
Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

66,794

5.2

658

8.8

3,522

-12.5

560

-79.3

63,52211.8

605 -23.4

4,025

40.9

2,711

42.4

Net income per share
Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018

Diluted net
income per share

Yen

Yen

70.39

―

340.65―

Note: We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. Net income per share and Diluted net income pershare are calculated on the assumption that the consolidation of shares was conducted at beginning of the previous consolidated fiscal year.

(2) Non-consolidated Financial Position
Total assets
Millions of yen

Net assets

Equity ratio

Net assets per share

Millions of yen%

Yen

31,09852.5

3,907.09

31,92653.8

4,010.91

Fiscal year ended
59,280March 31, 2019
Fiscal year ended
59,296
March 31, 2018
Reference: Shareholders’ equity
As of March 31, 2019: ¥31,098 million
As of March 31, 2018: ¥31,926 million

Note: We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. Net assets per share is calculated on theassumption that the consolidation of shares was conducted at beginning of the previous consolidated fiscal year.

2. Forecast of Non-Consolidated Financial Performance for the Fiscal Year Ending March 31, 2020
(April 1, 2019 to March 31, 2020)(Percentage figures indicate changes from the same period of the previous year)Net
Net sales
Operating income
Ordinary income
Net income
income pershare
Millions ofMillions ofMillions ofMillions of
%
%
%
%
Yen
yen
yen
yen
yen
nd
2 Quarter ending
32,5000.0
50 -86.2
1,500
-9.5
1,200
1.2
150.76
September 30, 2019
Fiscal year ending
65,500-1.9
100 -84.8
2,900
-17.7
1,000
78.6
125.64
March 31, 2020
* The consolidated financial results presented herein are not subject to the audit procedures by certified public
accountant or audit firm.
* Explanations for proper use of forecasts and other specific affairs
The forward-looking statement such as forecast of financial performance etc. described in this report basedon information currently available and certain assumptions judged to be reasonable. Actual performance
may differ significantly from these projections due to various factors.
(Changes in presentation method of date)
We changed presentation method of date to Western calendar style from Japanese calendar style since “Financial
Results for the Fiscal Year Ended March 31, 2019”3

Table of Contents
1. Business Results and Qualitative Information for the Fiscal Year Ended March 31, 2019 ························ 5(1) General overview of financial performance ······································································· 5(2) General overview of Consolidated financial position····························································· 6
2. Overview of the T.RAD Group ·························································································· 7
3. Basic Concept Behind the Selection of Accounting Standards ······················································· 9
4. Consolidated Financial Statements ···················································································· 10(1) Consolidated balance sheets ······················································································· 10(2) Consolidated statements of income and consolidated statement of comprehensive income ················ 12(Consolidated statements of income) ··········································································· 12(Consolidated statement of comprehensive income) ·························································· 14(3) Consolidated statements of changes in net assets ······························································· 15(4) Consolidated statements of cash flows ··········································································· 17(5) Notes concerning consolidated financial statement ····························································· 19(Going concern assumptions) ····················································································· 19(Basis for preparation of consolidated financial statements) ··················································· 19(Changes in presentation method) ················································································ 22(Consolidated balance sheets) ····················································································· 23(Consolidated statements of income) ············································································· 24(Consolidated statement of changes in net assets) ······························································ 26(Notes to consolidated statement of cash flows) ································································ 28(Segment information) ····························································································· 28(Supplementary information) ······················································································ 31(Per share information)····························································································· 32(Significant subsequent events) ··················································································· 32(Omitted disclosure) ································································································ 32
5. Non-Consolidated Financial Statements and main notes ···························································· 33(1) Non-consolidated balance sheets·················································································· 33(2) Non-consolidated statements of income ········································································· 37(3) Non-consolidated statements of changes in net assets ·························································· 39(4) Notes concerning non-consolidated financial statement························································ 41(Going concern assumptions) ····················································································· 41

41. Business Results and Qualitative Information for the Fiscal Year Ended March 31, 2019(1) General overview of financial performance
General overview
The economic environment during the consolidated fiscal year that ended March 31, 2019 remained strong, aided by
the favorable transition of domestic demand although decrease of exports behind the gradual slowdown in global economy.
However, there are concerns that the economy downward pressure risk which will be caused by slowdown in Chinese
economy and the protectionist trade policy of the U.S. administration.
Under the circumstances, the net sales of the T.RAD Group (on a foreign currency basis) in domestic and overseas
increased from the same period of the previous year except Europe and Other. Although payment of settlement related toantitrust laws etc. decreased, the profit attributable to owner of parent decreased from the same period of the previous year
due to the decrease of gain on sales of investment securities, increase of impairment loss and the increase of income taxes.
As a result, net sales during the consolidated fiscal year under review increased by 11,635 million yen from the previous
fiscal year, amounting to 136,125 million yen (up 9.4% year on year), operating income decreased by 700 million yen,amounting to 5,092 million yen (down 12.1% year on year), ordinary income decreased by 873 million yen, amounting to
5,572 million yen (down 13.6% year on year) and profit attributable to owners of parent decreased by 1,956 million yen,amounting to 1,735 million yen (down 53.0% year on year).
The segment results are as follows.
The book-closing date for the consolidated subsidiaries for the consolidated fiscal year under review is December 31. In
preparing the consolidated financial statements, the financial statements as of, and for one year period ended on this datewere used. With respect to important transactions conducted during the period between this date and the book-closing
date for consolidated accounting, we have made adjustments as necessary for consolidated accounting. The segments
relevant to such adjustments are the United States, Europe, Asia and China.
Three of domestic subsidiaries have the same settlement date that coincides with the last day of the consolidated fiscal
year. The corresponding segment is Other.
In the consolidated fiscal year under review, T.RAD CONNECT Co., Ltd. in which we newly established is included in
the scope of consolidation. The corresponding segment is Other.
Net Sales

Operating Income (Loss)

Fiscal year
ended March
31, 2018

Fiscal year
ended March
31, 2019

Increase/
Decrease

Percentagechange(on a foreign
currency basis)*(%)

Fiscal year
ended March
31, 2018

Fiscal year
ended March
31, 2019

Increase/
Decrease

Percentagechange(on a foreign
currency basis)*(Millions of yen)

(Millions of yen)

(Millions of yen)(%)

(Millions of yen)

(Millions of yen)

(Millions of yen)Japan

56,86260,901

4,038

7.1

604

660

55

9.1

United States

30,236

31,394

1,157

5.8

678

(325)

-1,004-149.0Europe

4,126

3,707

-419

-3.3

(509)

(1,298)-789-176.1

Asia

17,055

18,547

1,491

11.2

2,116

2,682

565

30.2

China

15,242

20,633

5,391

46.7

2,709

2,807

98

16.0

966

941

-24

-2.6

192

566

374

194.2

124,490

136,125

11,635

11.6

5,792

5,092

-700

-7.0

Other
(including
elimination)
Total*The percentage changes (on a foreign currency basis) in the chart are the percentage changes after correcting fordifferences arising from fluctuations in the foreign exchange rates applicable to overseas net sales.
(i) Japan
Net sales of products for automobile industry increased from the same period of the previous year thanks to the favorable
transition of the orders received for our products of models. The net sales of products for construction and industrial
machines increased from the same period of the previous year due to increase of the demand for China in the first half offiscal year and favorable Mining market. As a result, the net sales in the Japan segment increased by 4,038 million yen,resulting in 60,901 million yen.
Operating income increased by 55 million yen from the same period of the previous year, resulting in 660 million yen.
(ii) United States
The net sales of products for the automobile industry increased due to the commencement of mass production of models forwhich orders were newly received etc. The net sales of products for construction and industrial machines increased from thesame period of the previous year due to the increase of the major customers demand in the first half of fiscal year. As aresult, the net sales in the United States segment increased by 1,157 million yen from the same period of the previous year,
resulting in 31,394 million yen. On a foreign currency basis, it increased by 5.8%.
5Operating loss of 325 million yen was posted, worsening by 1,004 million yen from the same period of the previous
year due to increase of cost influenced by increase in custom duties and increase of scrap cost etc. On a foreign currency
basis, it decreased by 149.0%.
(iii) Europe
The net sales of products for the automobile industry increased from the same period of the previous year due to theincrease of orders received from major customers in Czech Republic. The net sales of products for air conditioners
decreased from the same period of the previous year due to the ending of transaction by major customers. As a result, thenet sales in the Europe segment decreased by 419 million yen from the same period of the previous year, resulting in 3,707
million yen. On a foreign currency basis, it decreased by 3.3%.
Operating loss of 1,298 million yen was posted, worsening by 789 million yen from the same period of the previous
year by increased cost associated with launch of a new order model in Czech Republic. On a foreign currency basis, it
decreased by 176.1%.
(iv) Asia
The net sales of products for the automobile industry increased from the same period of the previous year due to thefavorable sales of the orders received models for motorcycles products in Indonesia and Vietnam, and the sales of products
for four-wheel vehicles increased in Thailand. As a result, the net sales in the Asia segment increased by 1,491 million yen
from the same period of the previous year, resulting in 18,547 million yen. On a foreign currency basis, it increased by
11.2%.
Operating income increased by 565 million yen from the same period of the previous year, resulting in 2,682 million
yen. On a foreign currency basis, it increased by 30.2%.
(v) China
The net sales of products for the automobile industry largely increased from the same period of the previous year due tothe net sales 4,259 million yen of Qingdao Toyo Heat Exchanger Co., Ltd. We acquired its shares additionally and making
it a subsidiary from the previous third quarterly consolidated accounting period. Net sales of products for construction andindustrial machines increased from the same period of the previous year due to the increase of orders received from major
customers in first half of fiscal year. As a result, the net sales in the China segment increased by 5,391 million yen, resulting
in 20,633 million yen. On a foreign currency basis, it increased by 46.7%.
Operating income increased by 98 million yen from the same period of the previous year, resulting in 2,807 million yen.
On a foreign currency basis, it increased by 16.0%.
Outlook for the fiscal year ending March 31, 2020
As to the forecast for the fiscal year ending March 31, 2020 of the T.RAD group, the net sales are expected to increase
from the same period of the previous year due to the sales of our overseas bases will increase. As to operating income andordinary income, these are expected to decrease due to decrease of domestic sales and the influence of increase in custom
duties by U.S-China trade conflict etc.
We forecasts the following consolidated financial performance for the fiscal year ending March 31, 2020: net sales of139,200 million yen (up 2.3% year on year), operating income of 4,100 million yen (down 19.5% year on year), ordinary
income of 4,600 million yen (down 17.4% year on year), and profit attributable to owners of parent of 1,800 million yen(up 3.7% year on year).
(2) General overview of consolidated financial position
1) Assets, liabilities and net assets
Total assets at the end of the consolidated fiscal year under review resulted in 92,929 million yen (down 391 million yen
from the end of the previous fiscal year) due to decrease of tangible fixed assets etc.
Liabilities resulted in 46,759 million yen (up 77 million yen) due to the increase of accounts payable-trade andshort-term loans payable etc.
Although retained earnings increased, net assets resulted in 46,170 million yen (down 469 million yen) due to foreign
currency translation adjustment etc. decreased.
2) Cash flows
The increasing and decreasing factors of each cash flow in the consolidated fiscal year under review are as follows.
Net cash provided by operating activities was 8,558 million yen, a decrease of 644 million yen year on year due to thedecrease of profit before income taxes etc. Net cash used in investing activities was 6,387 million yen, a decrease of 1,964
million yen year on year due to the increase of purchase of tangible fixed assets and decrease of proceeds from sales ofinvestment securities etc., net cash provided by financing activities was 71 million yen, a decrease of 677 million yen year on
year due to the decreases of interest-bearing liabilities etc.
As a result, cash and cash equivalents at the end of the fiscal year under review totaled 13,826 million yen, an increase of
1,860 million yen from the end of the previous fiscal year.
62. Overview of the T.RAD Group
1. Contents of Businesses
The T.RAD Group, which consists of T.RAD Co., Ltd. (the “Company”), its 18 subsidiaries and two affiliates,
mainly manufactures and sells various types of heat exchangers and provides related services.
Each reportable segment is composed as below, and these reportable segments are the same as theclassification of the segment information listed in 4. Consolidated Financial Statements (5) Notes concerning
Consolidated Financial Statements.
Reportable Segments
Main company
Japan
T.RAD Co., Ltd. (the Company)
United States
T.RAD North America, Inc.
Tripac International Inc.
EuropeT.RAD Czech s.r.o.
TRM Corporation B.V.
TRM LLC
T.RAD Sales Europe GmbH
Asia
T.RAD (THAILAND) Co., Ltd.
PT. T.RAD INDONESIA
T.RAD (VIETNAM) Co., Ltd.
TORC Co., Ltd. *1
TATA TOYO RADIATOR, Ltd. *1
China
T.RAD (Zhongshan) Co., Ltd.
T.RAD (Jining) Co., Ltd.
T.RAD (Changshu) Co., Ltd.
T.RAD (Changshu) R&D Center Co., Ltd.
Qingdao Toyo Heat Exchanger Co, Ltd.
Other (Japan)
Asuni Co., Ltd.
Towa Unyu Co., Ltd.
Towa Kosan Co., Ltd.
T.RAD CONNECT Co., Ltd.
*1 Equity-method affiliates are included in the reportable segment where they are located.
[Business Flow Chart]
The flow chart for the businesses of the T.RAD Group is as follows.
Customers
Products
T.RAD North America, Inc. (U.S.A)*1

Products
Asuni Co., Ltd.*1

T.RAD (THAILAND) Co., Ltd. (Thailand)*1
T.RAD (Zhongshan) Co., Ltd. (China)*1
T.RAD Czech s.r.o. (Czech Republic)*1

Products

Products

PT. T.RAD INDONESIA (Indonesia)*1

T.RAD Sales Europe GmbH*1

TRM Corporation B.V. (Netherlands)*1

Sales related Services

TRM LLC (Russia)*1
T.RAD (Jining) Co., Ltd. (China)*1
T.RAD (Changshu) Co., Ltd. (China)*1

T.RAD CONNECT Co., Ltd.*1

T.RAD (VIETNAM) Co., Ltd. (Vietnam)*1

Development of Software, Sale

Tripac International Inc.(U.S.A) *1
Qingdao Toyo Heat Exchanger Co, Ltd. (China) *1
TORC Co., Ltd. (Thailand)*2

Logistics, Services

TATA TOYO RADIATOR, Ltd. (India)*2
2

Towa Unyu Co., Ltd.*1

Products, Semi finished goods, Parts
T.RAD Co., Ltd. (the Company)
R&D

Services

Towa Kosan Co., Ltd.*1*1Consolidated subsidiary *2Equity-method affiliate

T.RAD (Changshu) R&D Center Co., Ltd. *1

7

2. Subsidiaries and Affiliates(Thousand)Descriptionof business

Voting rights
ratio (%)

Relations with theCompany

Consolidated subsidiaries
T.RAD North
Hopkinsville,
America, Inc. *2,4 Kentucky, U.S.A

USD
70,000

Manufacture and salesof heat exchangers

100.0

USD
4,166
CZK
780,000

Manufacture and salesof heat exchangers
Manufacture and salesof heat exchangers

95.3*1 (95.3)
96.8

Business relationship
Concurrent positionof director
Business relationship

Tripac International
Inc.
T.RAD Czech s.r.o.
*2Fort Worth, Texas,
U.S.A
Unhost, Czech

TRM Corporation
B.V.*2Amsterdam,
Netherlands

EUR
28,134

Manufacture and salesof heat exchangers

76.4

TRM LLC*2
T.RAD (THAILAND)
Co., Ltd.*2

Nizhniy
Novgorod,
RussiaChachoengsao,
ThailandRUB
1,174,235

Manufacture and salesof heat exchangers

76.4*1 (76.4)

THB
390,500

Manufacture and salesof heat exchangers

100.0

PT. T.RAD
INDONESIA

Bekasi, Java,
Indonesia

USD
7,300

Manufacture and salesof heat exchangers

90.0*1 (26.3)

T.RAD (VIETNAM)
Co., Ltd.

Hanoi,
Vietnam

USD
6,300

Manufacture and salesof heat exchangers

100.0

T.RAD (Zhongshan)Co., Ltd.*2

Zhongshen,
Guangdong, China

CNY107,601

Manufacture and salesof heat exchangers

90.0

T.RAD (Jining) Co.,
Ltd.
T.RAD (Changshu)
Co., Ltd.*2

Jining,Shandong, China
Changshu,
Jiangsu, China

CNY
3,000
USD
17,000

Manufacture and salesof heat exchangers
Manufacture and salesof heat exchangers

90.0*1 (90.0)
90.0

T.RAD (Changshu)
R&D Center Co., Ltd.
T.RAD Sales Europe
GmbH
Qingdao Toyo Heat
Exchanger Co., Ltd.
Asuni Co., Ltd.

Changshu,
Jiangsu, China
Stuttgart,
Germany
Qingdao,
Shandong, China
Hadano,Kanagawa, Japan
Higashiura, Chita,
Aichi, Japan

USD
2,700
EUR
25,000CNY
61,339JPY
15,325
JPY
48,900Development of heatexchangers
Sales services ofT.RAD in Europe
Manufacture and salesof heat exchangers
Sales of heatexchangers
Cargo transportation

100.0

Towa Kosan Co., Ltd.

Minami-ku,Nagoya,
Aichi, Japan

T.RAD CONNECT
Co., Ltd.

Shibuya-ku,
Tokyo, Japan

JPY
334,720JPY
50,000Management ofproperties, etc.
Planning, development,
production and sale ofsoftware etc.

100.0
*1 (7.3)
51.0

Equity-method affiliates
TORC Co., Ltd.
Chachoengsao,
Thailand

THB
60,000

Manufacture and salesof heat exchangers

45.0

Name

Towa Unyu Co., Ltd.

Location

CapitalBusiness relationshipObligation Guarantee
Loan of funds
Holding Company of
TRM LLC
Concurrent positionof director
Business relationshipObligation Guarantee
Loan of funds
Business relationship
Concurrent positionof director
Business relationship
Concurrent positionof director
Business relationship
Concurrent positionof director
Business relationship
Concurrent positionof director
Business relationship

100.0

Business relationship
Concurrent positionof director
Business relationship
R&D Center
Business relationship51.0

Business relationship

100.0*1 (50.0)
100.0*1 (13.0)

Business relationship
Business relationshipTransportation of
Products etc.
Business relationship
Business relationship
Concurrent positionof director
Business relationship
Concurrent positionof director
Business relationship

TATA TOYO
Pune, India
INR Manufacture and sales
40.2
RADIATOR, Ltd.
320,000 of heat exchangers
Notes:*1. The figures in parentheses are the ratios that the Company indirectly holds.
*2. T.RAD North America, Inc., T.RAD Czech s.r.o., TRM Corporation B.V., TRM LLC., TRAD (THAILAND) Co.,
Ltd., T.RAD (Zhongshan) Co., Ltd., and T.RAD (Changshu) Co., Ltd are specific subsidiaries of the Company.
*3. Eighteen consolidated subsidiaries and two affiliates mentioned above have not submitted any securities registration
statements or securities reports.
*4. Net sales(except internal sales among consolidated companies) accounted for over 10% of consolidated net sales.
However, the principal income summary is omitted, as net sales of the subsidiary accounted for over 90% of net sales
in United States area of the segment information.
83. Basic Concept Behind the Selection of Accounting Standards
In order to ensure comparability between companies and over time, the T.RAD Group prepares the Company’s
consolidated financial statements based on the “Ordinance on Terminology, Forms, and Preparation Methods ofConsolidated Financial Statements (except Chapters 7 and 8)” (Ordinance of the Ministry of Finance No. 28 of 1976).
Please note that, in view of domestic and overseas circumstances, the Company intends to respond appropriately to theapplication of international accounting standards.

9

4．Consolidated Financial Statements(1) Consolidated balance sheets(Millions of yen)
FY2017FY2018

As of March 31, 2018

As of March 31, 2019

AmountAmount(Assets)
Current assets
Cash and deposits*212,128*2

13,894

Notes and accounts receivable-trade*3

24,928*3

24,742

Electronically recorded monetary claims-operating

*3

2,659

*3

2,589

Short-term investment securities

399

399

Merchandise and finished goods

2,728

2,714

Work in process

594

734

Raw materials and supplies

5,097

5,370

Others

2,253

2,792

Allowance for doubtful accounts

(85)

(85)

50,70453,152

Total current assets
Noncurrent assets
Tangible fixed assets
Buildings and structures

19,93420,500

Accumulated depreciation(13,406)(14,111)

Building and structures, net

6,528

6,389

Machinery, equipment and vehicles

49,35950,264

Accumulated depreciation(33,072)(35,025)

Machinery, equipment and vehicles, net

16,287

15,239

Land

2,602

2,335

Lease assets

805

250

Accumulated depreciation

(683)

(147)

Lease assets, net

122

102

Construction in progress

3,476

3,457

Other tangible fixed assets

27,41728,585

Accumulated depreciation(25,180)(26,467)

Other tangible fixed assets, net

2,236

2,117

Total tangible fixed assets

31,25429,641

Goodwill

583

228

Other intangible assets

1,068

1,255

Total intangible assets

1,651

1,484

Intangible assets

Investments and other assets*1

Investment securities

8,470

*1

7,668

Net defined benefit asset

467

233

Deferred tax assets

59

63

Others741

704

Allowance for doubtful accounts

(28)

(19)

Total investments and other assets

9,710

8,650

Total noncurrent assets

42,616

39,776

93,32092,929Total assets

10

(Millions of yen)
FY2018FY2017
As of March 31, 2018

As of March 31, 2019

AmountAmount(Liabilities)
Current liabilities
Notes and accounts payable-trade

14,086

Electronically recorded obligations - operating

*3

4,703

14,280*3

5,340

Short-term loans payable

7,646

8,061

Lease obligations

378

414

Income taxes payable

563

658

Accrued expenses

3,289

2,797

Provision for bonuses

1,468

1,390

Provision for directors’ bonuses

96

84

Provision for product warranties

206

235

62

Provision for shareholders benefit program

757

48

Electronically recorded obligations - non-operating*3

Others

2,384

2,012

Total current liabilities

35,642

36,053

8,582

8,368

*3

729

Noncurrent liabilities
Long-term loans payable
Lease obligations

735

777

Deferred tax liabilities

1,480

1,324

Provision for directors' retirement benefits

45

Net defined benefit liability

95

95

Asset retirement obligations

89

90

Others51

43

11,03910,70546,68146,759

Capital stock

8,545

8,545

Capital surplus

7,434

7,551

Retained earnings

27,37628,315

Total noncurrent liabilities
Total liabilities(Net assets)
Shareholders’ equity

Treasury stock

(899)

(901)

Total shareholders’ equity

42,45743,512

Valuation and translation adjustments
Valuation difference on available-for-sale securities

1,047

456

Foreign currency translation adjustment

679

(381)

Remeasurements of defined benefit plans

677

485

Total valuation and translation adjustments

2,404

559

Non-controlling interests

1,777

2,098

Total net assets

46,63946,170Total liabilities and net assets

93,32092,92911

(2) Consolidated statements of income and consolidated statement of comprehensive income(Consolidated statements of income)(Millions of yen)
FY2018FY2017(Apr. 1, 2017–Mar. 31, 2018)(Apr. 1, 2018–Mar. 31, 2019)

AmountAmountNet sales

124,490#1, #7

Cost of sales
Gross profit

108,543

136,125#1, #7

120,302

15,946

15,822

Packing and delivery expenses

1,498

1,749

Provision for product warranties

98

162

Selling, general and administrative expenses

Directors' compensations

201

212

Salaries and allowances

2,001

2,153

Provision for bonuses

338

302

Provision for directors’ bonuses

96

84

Provision for directors’ retirement benefits

2

1

Provision for retirement benefits

79

65

Welfare expenses

1,059

1,080

Depreciation

304

356

Rent expenses

315

448

516

Transportation and communication expenses#1

Research and development expenses

1,255

612
#1

1,417

Entertainment expenses

95

109

Provision for shareholders benefit program65

22

Provision of allowance for doubtful accounts

82Commission Fee

358

463

Miscellaneous expenses

1,769

1,326

Amortization of goodwill

89

158

Total selling, general and administrative expenses

10,153

10,730Operating income (loss)

5,792

5,092

Interest income

80

153

Dividends income

208

185

Equity in earnings of affiliates

337

196

Others277

331

Total non-operating income

904

865

Interest expenses

212

248

Foreign exchange losses

29

105

Others1031

Total non-operating expenses

251

386

Ordinary income

6,445

5,572

Non-operating income

Non-operating expenses

12

(Millions of yen)
FY2018FY2017(Apr. 1, 2017–Mar. 31, 2018)(Apr. 1, 2018–Mar. 31, 2019)

AmountAmountExtraordinary income
11

Gain on sales of noncurrent assets#2

Gain on sales of investment securities

641

#2

171
―

Gain on step acquisitions

607―

Total extraordinary income

1,261

171

Extraordinary loss
#3

Loss on retirement of noncurrent assets

108

#3

90

4

#4

99

#4

Loss on sales of noncurrent assets#5

Impairment loss

28

#5

1,418
11

―

Loss on sales of golf club memberships

1,998

#6

Total extraordinary loss

2,139

1,912

Income (loss) before income taxes

5,567

3,830

Income taxes-current

1,459

1,690

Income taxes-deferred

158

195

Total income taxes

1,617

1,885

Profit (loss)

3,949

1,945

#6

Surcharges

292

Profit (loss) attributable to non-controlling interests

257

209

Profit (loss) attributable to owners of parent

3,691

1,735

13

(Consolidated statement of comprehensive income)(Millions of yen）
FY2017FY2018(Apr. 1, 2017–Mar. 31, 2018)(Apr. 1, 2018–Mar. 31, 2019)

AmountAmount3,949

Profit (loss)

1,945

Other comprehensive income
Valuation difference on available-for-sale securities

(101)

(591)

Foreign currency translation adjustment359(1,138)Remeasurements of defined benefit plans, net of tax

180

(190)

Share of other comprehensive income of associates accounted for using equity method

(199)

(32)

Total other comprehensive income

239(1,953)Comprehensive income

4,189

(8)

Comprehensive income attributable to owners of parent

3,900

(108)

Comprehensive income attributable to non-controlling interests

288

100

(Breakdown)

14(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2018(April 1, 2017 to March 31, 2018)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2017

Capital surplus

8,545

Retained earnings

7,473

Total
shareholders’ equity

Treasury stock

24,162(891)

39,289Changes of items during the period
Dividends from surplus

(477)

(477)

Profit attributable toowners of parent

3,691

3,691

Purchase of treasury stock
Disposal of treasury shares

0Change in ownership interestof parent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiod

(8)

(8)

0

0

(38)

As of March 31, 2018

(38)

－

(38)

3,214

(8)

3,167

8,545

7,434

27,376(899)

42,457(Millions of yen)
Valuation and translation adjustments
Valuation difference
on available-for-salesecurities
As of April 1, 2017

1,148

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total valuationand translation
adjustments

Subscription
rights to shares

Total net assets

496

2,195

900

42,385

550

Changes of items during theperiodDividends from surplus(477)

Profit attributable toowners of parent

3,691

Purchase of treasury stock(8)

Disposal of treasury shares

0Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2018

(38)
(101)

129

180

208

877

1,086

(101)

129

180

208

877

4,253

1,047

679

677

2,404

1,777

46,63915

Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2018

Capital surplus

8,545

Retained earnings

7,434

Total
shareholders’ equity

Treasury stock

27,376(899)

42,457

Changes of items during the period
Dividends from surplus

(795)

(795)

Profit attributable toowners of parent

1,735

1,735

Purchase of treasury stock(1)

Change in ownership interestof parent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiod(1)116

As of March 31, 2019

116

－

116

939

(1)

1,054

8,545

7,551

28,315(901)

43,512(Millions of yen)
Valuation and translation adjustments
Valuation difference
on available-for-salesecurities
As of April 1, 2018

1,047

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total valuationand translation
adjustments

Non-controllinginterests

Total net assets

677

2,404

1,777

46,639679

Changes of items during theperiodDividends from surplus(795)

Profit attributable toowners of parent

1,735

Purchase of treasury stock
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2019

(1)
116
(591)

(1,061)(191)(1,844)320(1,524)(591)(1,061)(191)(1,844)

320

(469)

456

(381)

485

559

2,098

46,17016

(4) Consolidated statements of cash flows(Millions of yen)
FY2018FY2017(Apr. 1, 2017–Mar. 31, 2018)(Apr. 1, 2018–Mar. 31, 2019)

AmountAmountNet cash provided by (used in) operating activities
Income (loss) before income taxes

5,567

3,830

Depreciation and amortization

5,550

6,339

Impairment loss

28

1,418

Retirement benefit expenses

(44)

(103)

Increase (decrease) in net defined benefit liability

64

67

Increase (decrease) in provision for directors' retirement benefits21Increase (decrease) in allowance for doubtful accounts

(29)

14

Increase (decrease) in provision for bonuses

191

(76)

Increase (decrease) in provision for directors' bonuses

43

(12)

Increase (decrease) in provision for product warranties

(35)

41

Increase (decrease) in provision for shareholders benefit program

20

(14)

Loss on retirement of noncurrent assets

108

90

Loss (gain) on sales of tangible fixed assets

(7)

(71)

Loss (gain) on sales of investment securities

(641)

―

Surcharges

1,998

292

Interests and dividends income

(289)

(338)

Interests expenses

212

248

Foreign exchange losses (gains)

(60)

46

Equity in (earnings) losses of affiliates

(337)

(196)

Decrease (increase) in notes and accounts receivable-trade(2,978)(408)

Decrease (increase) in inventories

(679)

(791)

Increase (decrease) in notes and accounts payable-trade

3,258

1,333

Loss (gain) on step acquisitions

(607)

―

Decrease (increase) in other current assets

38

(494)

Increase (decrease) in other current liabilities

378

(511)

Other, net

7637

Subtotal

11,828

10,743365

432Interest and dividends income received
Interest expenses paid

(213)

(248)

Income taxes paid

(1,364)(1,622)

Surcharges(1,412)(746)

Net cash provided by (used in) operating activities

9,202

8,558

17

(Millions of yen)
FY2018FY2017(Apr. 1, 2017–Mar. 31, 2018)(Apr. 1, 2018–Mar. 31, 2019)

AmountAmountNet cash provided by (used in) investing activities
19

169

Payments into time deposits

(276)

(95)

Purchase of tangible fixed assets

Proceeds from withdrawal of time deposits(5,352)(6,774)

Proceeds from sales of tangible fixed assets

147

717

Purchase of intangible assets

(247)

(428)

Purchase of investment securities

(14)

―

Proceeds from sales of investment securities

990

―

247

―

63

25

(4,422)(6,387)

Net increase (decrease) in short-term loans payable

714

759

Proceeds from long-term loans payable

1,658

2,233

Repayment of long-term loans payable(923)(2,533)

1

51

Proceeds from purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Proceeds from share issuance to non-controlling shareholders

(8)

(1)

Cash dividends paid

(477)

(795)

Cash dividends paid to non-controlling shareholders

(106)

(102)

―

411

(29)

(33)

Others(78)

82

Net cash provided by (used in) financing activities

749

71

Effect of exchange rate change on cash and cash equivalents

220

(382)

Net increase (decrease) in cash and cash equivalents

5,749

1,860

Cash and cash equivalents at beginning of period

6,216

11,965Purchase of treasury stock

Proceeds from changes in ownership interests in subsidiaries that do not result inchange in scope of consolidation
Payments from changes in ownership interests in subsidiaries that do not result inchange in scope of consolidation*1

Cash and cash equivalents at end of period

18

11,965*1

13,826

(5) Notes concerning Consolidated Financial Statements(Going concern assumptions)Not applicable(Basis for preparation of consolidated financial statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 18
Names of the main consolidated subsidiaries:
Names of the consolidated subsidiaries are omitted as they are listed in “2. Overview of the T.RAD
Group. ”
Since the consolidated fiscal year under review, T.RAD CONNECT Co., Ltd. has been included in thescope of consolidation. Regarding T.RAD CONNECT Co., Ltd., we have included the company in thescope of consolidation by a new investment in the consolidated fiscal year under review.
2. Application of equity method(1) Number of equity method affiliates: 2
Names of main companies:
TORC Co., Ltd.
Tata Toyo Radiator Ltd.
(2) Of the companies accounted for by the equity method, for those that have a closing date that differsfrom the consolidated closing date, the financial statements for each such company’s financial year areused.
3. Fiscal years of consolidated subsidiaries
The book-closing date of fourteen overseas companies out of the consolidated companies and T.RAD
CONNECT Co., Ltd. is December 31.
In preparing the consolidated financial statements, the financial statements as of the dates stated above
were used. With regard to important transactions that occurred between each company’s closing date andthe consolidated closing date, necessary adjustments for consolidation were made.
Three of our consolidated subsidiaries, i.e., Asuni Co., Ltd., Towa Unyu Co., Ltd., and Towa Kosan Co.,
Ltd., have the same settlement date that coincides with March 31 of the consolidated fiscal year.
4. Accounting standard(1) Valuation basis and method for important assets
i. Securities
Other securities
Securities with fair market values:
Stated at the market value as of the balance sheet date, based on quoted market prices, etc. (anyvaluation differences are included in net assets in full, and the cost of securities sold isdetermined by the gross average method.);
Securities without fair market values:
Stated at cost determined by the gross average method.
ii. Derivatives
Derivative is evaluated by quoted market prices.
iii. Inventories
Stated at cost by the gross average method, in principle (for figures shown on the balance sheet,values are written down to their book values based on their decreased profitability).
In addition, overseas consolidated subsidiaries mainly adopt the lower-of-cost-or-market method
based on the first-in first-out method.

19

(2) Depreciation method for important depreciable assets
i. Tangible fixed assets (excluding lease assets)
Depreciation of Tangible fixed assets is calculated mainly by the declining-balance method. The
approximate useful life of assets is as follows:
Buildings and structures:
3–60 years
Machinery, equipment and vehicles:
2–17 years
Assets with an acquisition cost from ¥100,000 to less than ¥200,000 are depreciated by thestraight-line method over three years based on the provisions of the Corporation Tax Act.
At overseas consolidated subsidiaries, depreciation is calculated principally by the straight-line
method.
ii. Intangible assets (excluding lease assets)
At the Company and consolidated subsidiaries, the amortization of intangible assets is computed by
the straight-line method. Software for internal use is amortized by the straight-line method over theestimated internal useful life (five years).
iii. Lease assets
Lease assets are amortized by the straight-line method, assuming the lease period as the useful lifeand no residual value.
(3) Recognition of important allowancesi. Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount determined based on a reasonable
standard such as the historical experience of bad debt for ordinary accounts. For specific accounts
such as doubtful accounts receivable, the collectability is determined individually, and the estimateduncollectible amount is recorded.
ii. Provision for bonuses
To appropriate funds for the payment of bonuses to employees, Provision for bonuses is provided at
an estimated amount to be paid.
iii. Provision for directors’ bonuses
Provision for directors’ bonuses is provided at an estimated amount to accrue for the fiscal year
ended March 31, 2019.
iv. Provision for product warranty
To provide for potential expenses related to the after-the-sale service of products, the Company
allots an estimated amount based upon past performance.
v. Provision for shareholders benefit program
In order to prepare for the expenditure accompanying shareholders benefit program, we are posting
forecasted amount of occurrence based on the rate of past use results etc.
vi. Provision for directors’ retirement benefits
Some of the consolidated subsidiaries provide the provision for directors’ retirement benefits at an
amount deemed necessary to cover the total amount to be paid mainly pursuant to the internal
regulations thereof at the end of the fiscal year-end.
(4) Accounting method for defined benefit plansi. Method of attributing expected defined benefit plans
In calculating its defined benefit plans obligation, the Company applies the point basis as its methodof attributing the expected defined benefit plans to the periods until the end of the consolidated
fiscal year under review.
ii. Amortizing method for actuarial gains or losses and prior service costs
Prior service cost is amortized using the straight-line method over a certain length of period equal toor less than the average remaining service period for employees at the time such gains or losses are
realized (maximum 15 years).
The actuarial gains or losses realized in each accounting period for the said allowance is amortizedby the straight-line method over a certain length of period equal to or less than the averageremaining service period for employees at the time such gains or losses are realized (maximum 15
years).
iii. Treatment for unrecognized actuarial gains or losses and unrecognized prior service costs
Actuarial gains or losses and prior service costs that are yet to be recognized in profit or loss arerecognized within net assets as remeasurements of defined benefit plans under accumulated othercomprehensive income, after adjusting for tax effects.

20(5) Significant hedge accounting methods
i. Hedge accounting methods
Deferred hedge accounting treatment is used. With regard to the parent company, designated hedge
accounting treatment is used for foreign currency-denominated monetary claims to which forward
foreign exchange contracts have been applied. Exceptional accounting is used for interest-rate swap
agreements which conform to the special regulated terms.
ii. Hedging method and scope
Hedging method : Forward foreign exchange
Scope of hedging : Foreign currency-denominated accounts receivable
Hedging method : Interest-rate swap agreement
Scope of hedging : loans payableiii. Hedging policy
Primarily, the parent company enters into forward foreign exchange transactions for the purpose of
reducing the risk from market price fluctuations on foreign currency-denominated transactions.
In addition, interest rate swap agreements are used to reduce the risk from interest rate fluctuationsof loans.
iv. Method for evaluating the effectiveness of hedges
For forward foreign exchange transactions, confirmations are made that the currencies, value dates,
and amounts are identical. Interest swap agreements conforming to the special regulated terms areomitted to evaluate their effectiveness.
(6) Amortization of goodwill
As for the amortization of goodwill, we reasonably estimated the period during which the effect isrealized and made equal amortization over the period.
(7) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, cash in banks that can be withdrawn at any time andshort-term investments with a maturity of three months or less from purchasing date that can be easily
converted to cash and are subject to little risk of change in value.
(8) Other important matters for the preparation of consolidated financial statements
i. Accounting treatment of consumption taxes, etc.
The tax excluded method is adopted in accounting treatment of consumption taxes, etc.
ii. Application of consolidated tax payment system
Company and consolidated domestic subsidiaries applying consolidated tax payment system.

21

(Changes in presentation method)(Application of Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.)
We have been applying the “ Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.” (ASBJ
Statement No.28, February 16, 2018) from beginning of the first quarterly consolidated accounting period.
This has led to Deferred tax assets has been presented to Investments and other assets and Deferred tax liabilities has beenpresented to Noncurrent liabilities.

22

(Consolidated balance sheets)*1 Those for non-consolidated subsidiaries and affiliates are as follows:
FY2017(As of March 31, 2018)
Investment securities:

FY2018(As of March 31, 2019)¥2,172 million¥2,240 million

FY2017(As of March 31, 2018)

FY2018(As of March 31, 2019)*2 Pledged Assets and collateralized liabilities:
The following assets were pledged as collateral:

Cash and deposits:¥350 million¥283 million

The following liabilities were collateralized by the above assets:
FY2017(As of March 31, 2018)
Notes payable-trade:¥350 million

FY2018(As of March 31, 2019)¥283 million*3 Notes maturing at date of consolidated fiscal year-end, electronically recorded monetary claims and electronicallyrecorded obligations
Accounting method regarding notes maturing at date of consolidated fiscal year-end, electronically recorded monetaryclaims and electronically recorded obligations, these are settled on the date of clearance. As the closing date of thisfiscal year was a bank holiday, notes maturing at date of consolidated fiscal year-end, electronically recorded monetaryclaims and electronically recorded obligations are included in the balance of consolidated fiscal year-end, as follows:
FY2017(As of March 31, 2018)
Notes receivable-trade:
Electronically recorded monetary claims-operating
Electronically recorded obligations - operating
Electronically recorded obligations - non-operating¥31 million¥206 million¥1,134 million¥211 million

23

FY2018(As of March 31, 2019)¥27 million¥240 million¥1,295 million¥180 million

(Consolidated statements of income)#1 Research and development expenses included in general expenses and cost of sales:
FY2017FY2018(April 1, 2017–March 31, 2018)(April 1, 2018–March 31, 2019)¥2,827 million¥3,049 million#2 Gain on sales of noncurrent assets are as follows:
FY2017(April 1, 2017–March 31, 2018)
Buildings and structures:¥0 million
Machinery, equipment and vehicles:¥2 million
Land:―
Construction in progress:―
Other :
¥8 million
Total¥11 million#3 Loss on retirement of noncurrent assets are as follows:
FY2017(April 1, 2017–March 31, 2018)
Buildings and structures:¥28 million
Machinery, equipment and vehicles:¥69 million
Software―Construction in progress:¥1 million
Other:¥8 million
Total¥108 million

FY2018(April 1, 2018–March 31, 2019)¥0 million¥27 million¥122 million¥0 million¥19 million¥171 million
FY2018(April 1, 2018–March 31, 2019)¥27 million¥43 million¥5 million¥7 million¥7 million¥90 million#4 Loss on sales of noncurrent assets are as follows:

Machinery, equipment and vehicles:
Other:Total

FY2017(April 1, 2017–March 31, 2018)¥3 million¥0 million¥4 million

24

FY2018(April 1, 2018–March 31, 2019)¥91 million¥8 million¥99 million

#5 Impairment Loss:
Impairment losses were recorded in the following asset groups of the Group:
FY2017 (April 1, 2017–March 31, 2018)
Place
Type
Impairment loss
Purpose of use
T.RAD Czech s.r.o
Manufacture and sales of
Machinery, equipment and vehicles¥28 million
Unhost, Czech
heat exchangers
Total¥28 million
The asset groups are classified on the base of managerial accounting in consideration of company category and businesscategory.
As a result of accounting for the impairment of assets based on the aforementioned grouping, regarding aforementioned
tangible fixed assets were no longer expected to recover the investment amount due to the decrease in profitability.
Accordingly, their book values were written down to recoverable values, and the Company posted those losses as an
impairment loss under extraordinary loss.
The amount listed as recoverable value by each asset group was calculated in accordance with the asset’s value in usage.
In T.RAD Czech s.r.o, the calculation reflects a 10% discount in future cash flow.

FY2018 (April 1, 2018–March 31, 2019)
Place
Purpose of use
T.RAD Czech s.r.o
Manufacture and sales of
Unhost, Czech
heat exchangers
Qingdao Toyo Heat
Manufacture and sales of
Exchanger Co., Ltd.
heat exchangers
Qingdao, Shandong, China

Impairment loss

Type

Machinery, equipment and vehicles¥1,226 million

Intangible fixed assets¥192 million

Total¥1,418 million
The asset groups are classified on the base of managerial accounting in consideration of company category and businesscategory.
As a result of accounting for the impairment of assets based on the aforementioned grouping, regarding aforementioned
tangible fixed assets were no longer expected to recover the investment amount due to the decrease in profitability.
Accordingly, their book values were written down to recoverable values, and the Company posted those losses as an
impairment loss under extraordinary loss.
The amount listed as recoverable value by each asset group was calculated in accordance with the asset’s value in usage.
In T.RAD Czech s.r.o, the calculation reflects a 10% discount in future cash flow.
As to goodwill, in our consolidated subsidiary Qingdao Toyo Heat Exchanger Co., Ltd., unamortized balance of goodwill 192
million yen is posted as an impairment loss since the part of our holding share was sold and estimated profits at the time ofacquiring its shares are no longer expected.
#6 Surcharges are as follows:

Research-related expenses :FY2017(April 1, 2017–March 31, 2018)¥1,998 million

FY2018(April 1, 2018–March 31, 2019)¥292 million

In connection with sales of automotive parts (radiators and other components), investigations related to antitrust laws by
judicial authorities and lawsuit etc. related to the same laws are underway, in the consolidated fiscal year under review
and previous consolidated fiscal year, we posted the costs related to the investigations and settlement to someclients as an extraordinary loss.
#7 Inventories at the close of the fiscal year-end, are the amounts after it write-down of the book value as a result of adecrease in profitability. The following loss (gain) on valuation of inventories is included in cost of sales:
FY2017FY2018(April 1, 2017–March 31, 2018)(April 1, 2018–March 31, 2019)¥(19) million¥115 million

25

(Consolidated statement of changes in net assets)
Fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018)
1. Type and number of shares issued and treasury shares(Thousands of shares)
Number of shares at
Number of shares
Number of shares
Number of shares at
beginning of theincreased in thedecreased in theend of the current
current fiscal year
current fiscal year
current fiscal year
fiscal year
Shares issued
Common stock*1, *2
83,44475,099
8,344
―
Total
83,44475,0998,344―
Treasury shares
Common stock*1, *3, *4
3,825
6
3,447
384
Total
3,825
6
3,447
384
Note: 1. We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017.
2. The number of common stock decreased 75,099 thousand shares due to consolidation of shares.
3. The number of common stocks of treasury shares increased 6 thousand shares. 0 thousand shares increased
due to purchase of fractions of less than one share accompanying with consolidation of shares, and 6
thousand shares increased due to a repurchase of fractional shares(before consolidation of shares 5 thousand
shares, after consolidation of shares 0 thousand shares).
4.The number of common stocks of treasury shares decreased 3,447 thousand shares due to the decrease of
3,447 thousand shares by consolidation of shares.
2. Subscription rights to shares and own subscription rights to shares
Not applicable
3. Cash dividends(1) Cash dividends paid
Resolution

Type ofsharesCash dividends Cash dividends(Millions of yen) per share (Yen)Record date

Effective dateJune 28, 2017
CommonOrdinary General
238
3
March 31, 2017
June 29, 2017
stock
Meeting of Shareholders
November 6, 2017
Common238
3 September 30, 2017 December 1, 2017
Board of Directors
stock
Note: We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. “Cash dividends
per share” is described as the amount before the consolidation of shares.

(2) Cash dividends with record dates falling in the fiscal year ended March 31, 2018 and effective dates coming
after the end of the fiscal year
Cash
Cash
Type ofResource ofResolution
dividends per Record date Effective datedividends
sharesdividends(Millions of yen)share (Yen)
June 27, 2018
CommonRetained
March 31,
June 28,
Ordinary General
477
60
stock
earnings
2018
2018
Meeting of Shareholders
Note: We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017.

26

Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
1. Type and number of shares issued and treasury shares(Thousands of shares)
Number of shares at
Number of shares
Number of shares
Number of shares at
beginning of theincreased in thedecreased in theend of the current
current fiscal year
current fiscal year
current fiscal year
fiscal year
Shares issued
Common stock
8,344
8,344
―
―
Total
8,344
8,344
―
―
Treasury shares
Common stock *1
384
0
384
―
Total
384
0
384
―
Note: 1. The number of common stocks of treasury shares increased 0 thousand shares due to a repurchase of fractional
shares.
2. Subscription rights to shares and own subscription rights to shares
Not applicable
3. Cash dividends(1) Cash dividends paid
Resolution
June 27, 2018
Ordinary General
Meeting of Shareholders
November 5, 2018
Board of Directors

Type ofsharesCash dividends Cash dividends(Millions of yen) per share (Yen)Record date

Effective dateCommon
stock

477

60

March 31, 2018

June 28, 2018

Common
stock

318

40

September 30, 2018

December 1, 2018

(2) Cash dividends with record dates falling in the fiscal year ended March 31, 2019 and effective dates coming
after the end of the fiscal year
Cash
Cash
Type ofResource ofResolution
dividends per Record date Effective datedividends
sharesdividends(Millions of yen)share (Yen)
June 26, 2019
CommonRetained
March 31,
June 27,
Ordinary General
397
50
stock
earnings
2019
2019
Meeting of Shareholders

27

(Notes to consolidated statement of cash flows)*1 The relationship between cash and cash equivalents at the fiscal year-end and the amount of account title stated on
the consolidated balance sheets:
FY2017FY2018(April 1, 2017–March 31, 2018)(April 1, 2018–March 31, 2019)
Cash and deposits:¥12,128 million¥13,894 million
Securities:¥399 million¥399 million
Time deposits with a maturity of¥(562) million¥(467) million
3 months or more at date of purchase:
Cash and cash equivalents:¥11,965 million¥13,826 million(Segment information)
1. General information of reportable segments
The reportable segments of the Group are components for which discrete financial information is available andwhose operating results are regularly reviewed at management meetings comprising directors and officers,
whereby decisions are made regarding the allocation of resources to the segments and assessments are madeconcerning the segments’ performance.
The Group’s business involves the manufacture and sales of heat exchangers for the automobile and otherindustries. The Company covers the business in Japan. Overseas companies cover the business of each region
such as the United States, Europe (the Czech Republic, Russia and Germany), Asia (Thailand, Indonesia andVietnam) and China. Each of these overseas corporations is an independent business unit whose operations
involve the manufacture of products that are marketed in each respective area.
Therefore, our Group consists of the Company and these overseas corporations which are based on a
manufacturing and sales structure. As such, “Japan,” “the United States,” “Europe,” “Asia” and “China” are our
five reportable segments.
In each reportable segment, heat exchangers for automobiles, construction, industrial machinery and air
conditioners are manufactured and sold.
2. Calculation method for net sales, profit (loss), assets and other items by reportable segment
The accounting method for the Group’s reportable segments is generally the same as described in “Basis for
preparation of consolidated financial statements.”
Net sales for reportable segments are for each production region.
Segment income is based on operating income.
Intersegment income and transfer amount are calculated based on arm's length price.

28

3. Net sales, profit (loss), assets and other items by reportable segments
Fiscal year ended March 31, 2018(from April 1, 2017 to March 31, 2018)(Millions of yen)
Reportable segment
Other
Total
UnitedJapan
Europe
Asia
China
Total
StatesNet Sales:
Sales to outside customers
56,86230,236
4,126
17,055
15,242
123,523966
124,490
Intersegment sales or
6,659
164
603
105
1,604
9,138
3,197
12,336transfers
Total
63,52230,401
4,729
17,161
16,846132,662
4,164
136,826
Segment income (loss)
604
678
(509)
2,116
2,709
5,600
244
5,844
Segment assets
61,831
17,054
5,633
9,080
17,607111,206
2,345
113,552
Other items
Depreciation
2,804
1,125
151
1,095
442
5,619
87
5,706
Investment amount in
―
―
―
―
531
531
―
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
3,827
1,674
754
578
221
7,056
122
7,179
assetsNote: “Other” comprises business operations that are not categorized as reportable segments and includes the businessactivities of domestic subsidiaries, such as the transportation business.
Fiscal year ended March 31, 2019(from April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable segment
Other
Total
UnitesJapan
Europe
Asia
China
Total
StatesNet Sales:
Sales to outside customers
60,901
31,394
3,707
18,547
20,633
135,183
941
136,125
Intersegment sales or
5,893
177
479
74
1,851
8,476
3,347
11,824transfers
Total
66,794
31,571
4,186
18,621
22,484
143,660
4,289
147,949
Segment income (loss)
660
(325)
(1,298)
2,682
2,807
4,525
178
4,703
Segment assets
61,407
17,234
2,856
9,579
17,574
108,652
2,443
111,096
Other items
Depreciation
3,319
1,167
275
961
607
6,330
111
6,441
Investment amount in
―
―
―
―
531
531
―
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
4,175
933
285
894
292
6,581
143
6,724
assetsNote: “Other” comprises business operations that are not categorized as reportable segments and includes the businessactivities of domestic subsidiaries, such as the transportation business.

29

4. Difference amount between the total amount of reportable segments and the posted amounts in the consolidated
financial statements and the main contents of the difference amount (the adjustment of difference)(Millions of yen)
FY2017

Net sales
Total of reportable segments

FY2018132,662

143,660

Net sales of the classification “Others”

4,164

4,289

Elimination of trades among segments(12,336)(11,824)

Net sales in the consolidated financial statements

124,490

136,125(Millions of yen)

FY2017

Profit

FY2018

Total of reportable segments

5,600

4,525

Profit of the classification “Others”

244

178

Elimination of trades among segments

(51)

388

Operating income in the consolidated financial statements

5,792

5,092
(Millions of yen)

FY2017

AssetsTotal of reportable segments

FY2018111,206

108,652

2,345

2,443

(20,231)(18,167)

93,32092,929Assets of the classification “Others”
Elimination of trades among segments
Total assets in the consolidated financial statements(Millions of yen)

Other items

Depreciation

Total of reportablesegments

Other

Adjustments

Posted amounts in the
consolidated financial
statements

FY2017FY2018FY2017FY2018FY2017FY2018FY2017FY2018

5,619

6,330

87

111

(155)

(102)

5,550

6,339

Investment amount to
531
531
－
－
1,640
1,709
2,172
2,240
equity-method affiliate
Increase of tangible fixed
7,056
6,581
122
143
5,793
7,310
(1,386)585
assets and intangible assets
Note: Adjustments are as follows.
1. The adjustment of depreciation cost derives from the elimination of unrealized losses and gains related to non-current assets.
2. The adjustment of investment amount to the entities accounted for using equity method derives from investment profit onequity method.
3. The adjustment of increased amounts of tangible fixed assets and intangible assets are as follows.
Elimination of unrealized losses and gains related to non-current assets: (31) million yen
Other consolidated adjustment among segments: 617 million yen

30

(Supplementary information)
Sales states (consolidated)(Millions of yen)

FY2017FY2018(April 1, 2017 to March 31, 2018) (April 1, 2018 to March 31, 2019)

Amount%Amount%Increase/Decrease
Amount%For Automobile

88,18570.8

97,771

71.8

9,585

10.9

For construction &industrial machine

26,95721.7

30,342

22.3

3,384

12.6

For Air conditioner

5,721

4.6

4,602

3.4

-1,118

-19.5

Other

3,625

2.9

3,408

2.5

-216

-6.0

124,490
100.0
136,125
Total
Notes: Amounts less than one million yen have been truncated.

100.0

11,6359.3

31

(Per share information)
FY2017FY2018(April 1, 2017–March 31, 2018)(April 1, 2018–March 31, 2019)
Net assets per share:¥5,635.91¥5,537.37
Net income per share:¥463.77¥218.01(Note) 1. We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. Net assets per share andNet income per share are calculated on the assumption that the consolidation of shares was conducted at
beginning of the previous consolidated fiscal year.
2. Diluted net income per share is not listed for the consolidated fiscal year under review, as there are no potential
shares that have dilutive effects on per-share net income.
3. Basis for calculation of net income per share as follows.
FY2017FY2018(April 1, 2017–March 31, 2018)(April 1, 2018–March 31, 2019)
Net income per share
Profit attributable toowners of parent
3,691
1,735
(Millions of yen)
Net income that is not attributable toshares of common stock——(Millions of yen)
Net income attributable to shares ofcommon stock
3,691
1,735
(Millions of yen)
Average number of shares ofcommon stock during the period
7,960
7,959
(Thousands)(Significant subsequent events)
Not applicable(Omitted disclosure)
Disclosure of the statement of comprehensive income, lease transactions, information on related parties, financial
products, securities, derivative transactions, retirement benefits, stock options, tax-effect accounting, asset
retirement obligations, and notes related to the rental property are omitted because disclosure of such information
is deemed to be insignificant.

32

5. Non-Consolidated Financial Statements(1) Non-consolidated balance sheets(Millions of yen)
FY2018FY2017
As of March 31, 2018

As of March 31, 2019

AmountAmount(Assets)
Current assets
3,354

Cash and deposits

4,045

Notes receivable-trade

302

197

Electronically recorded monetary claims-operating

2,659

2,589

Accounts receivable-trade

13,65013,903

Short-term investment securities

399

399

Merchandise and finished goods

1,153

1,369

Work in process

341

1,117

Raw materials and supplies

529

655

Prepaid expenses

97

105

Short-term loans receivable from subsidiaries and affiliates

400

200

Accounts receivable-other

1,884

2,138

1

2

Other current assets
Allowance for doubtful accounts
Total current assets

(0)

(0)

24,77526,724

Noncurrent assets
Tangible Fixed Assets
Buildings

11,27911,876

Accumulated depreciation(8,869)(9,305)

Buildings, net

2,410

2,570

Structures

1,457

1,462

Accumulated depreciation(1,201)(1,225)256

237

Structures, net
Machinery and equipment

22,71924,468

Accumulated depreciation(17,331)(18,233)

Machinery and equipment, net

5,388

6,234

Vehicles119

121

Accumulated depreciation

(99)

(104)

Vehicles, net

19

16

Tools, furniture and fixtures

22,54923,619

Accumulated depreciation(21,565)(22,552)

Tools, furniture and fixtures, net

984

1,066

Land

1,228

1,228

Lease assets

629

63

Accumulated depreciation

(608)

(52)

Lease assets, net

21

10Construction in progress

1,616

1,370

2

2

11,926

12,737

Other, net
Total Tangible Fixed Assets

33

(Millions of yen)
FY2018FY2017
As of March 31, 2018

As of March 31, 2019

AmountAmountIntangible assets
Software

189

651

Other intangible assets

367

121

Total intangible assets

557

772

Investment securities

6,278

5,408

Stocks of subsidiaries and affiliates

6,466

6,517

Investments in capital of subsidiaries and affiliates

8,451

6,121

42

18

Investments and other assets

Long-term prepaid expenses
Insurance funds

113

49

Others858

929

Allowance for doubtful accounts

(28)

(19)

Allowance for investment loss

(339)

(227)

Deferred tax assets

193

247

Total investments and other assets

22,036

19,045

Total noncurrent assets

34,52032,555

Total assets

59,29659,28034

(Millions of yen)
FY2018FY2017
As of March 31, 2018

As of March 31, 2019

AmountAmount(Liabilities)
Current liabilities
Electronically recorded obligations – operating

4,703

5,340

Accounts payable-trade

6,488

6,796

Short-term loans payable

1,820

1,642

Lease obligations

296

396

Accounts payable-other

486

801

Income taxes payable

135

145

Accrued consumption taxes

177

75

Accrued expenses

1,798

1,473

Advances received

109

93

Deposits received

146

160

Provision for bonuses

1,442

1,358

Provision for directors’ bonuses

96

84

Provision for product warranties

31

29

Provision for shareholders benefit program

62

48

Electronically recorded obligations - non-operating

757

729

685

349

19,23919,527Long-term loans payable

6,825

7,362

Lease obligations

696

743

Provision for retirement benefits

520

464

Asset retirement obligations

63

63

Others

24

20

8,130

8,654

27,36928,181OthersTotal current liabilities
Noncurrent liabilities

Total noncurrent liabilities
Total liabilities

35

(Millions of yen)
FY2018FY2017
As of March 31, 2018

As of March 31, 2019

AmountAmount(Net assets）
Shareholders’ equity
8,545

8,545

Legal capital surplus

7,306

7,306

Other capital surplus

167

167

Total capital surplus

7,473

7,473

1,097

1,097

Reserve for dividends

500

500

Reserve for special account for advanced depreciation of noncurrent assets

104

101

General reserve

8,130

8,130

Retained earnings brought forward

5,927

5,694

Total retained earnings

15,75915,523

Treasury stock

(899)

(901)

Total shareholders’ equity

30,87930,642

Valuation difference on available-for-sale securities

1,047

456

Total valuation and translation adjustments

1,047

456

Total net assets

31,92631,098

Total liabilities and net assets

59,29659,280Capital stock
Capital surplus

Retained earnings
Legal retained earnings
Other retained earnings

Valuation and translation adjustments36

(2) Non-consolidated statements of income(Millions of yen)
FY2018FY2017

Net sales(Apr. 1, 2017–Mar. 31, 2018)(Apr. 1, 2018–Mar. 31, 2019)

AmountAmount63,522

66,794

Beginning finished goods

1,009

1,047

Cost of products manufactured

51,55654,087Purchase of finished goods

1,479

838

Transfer from other account

2,077

3,940

Total

Cost of sales

56,124

59,914

Finished goods transfer to other account

172

234

Ending finished goods

1,047

1,248

Cost of finished goods sold

54,90458,431Gross profit

8,618

8,363

2,426

2,506

Advertising expenses

22

43

Provision for product warranties

31

23

Directors' compensations

176

186

Salaries and allowances

1,001

1,005

Provision for bonuses

318

301

Provision for directors’ bonuses

96

84

Provision for retirement benefits

65

53

Welfare expenses

419

421

Depreciation

137

185

Repair expenses

79

102

Taxes and dues

72

80

Rent expenses

188

210

Transportation and communication expenses

365

414

Research and development expenses

1,453

1,576

Insurance expenses

28

24

Provision of allowance for doubtful accounts―

0

Stationery expenses

2230Entertainment expenses

53

55

Provision for shareholders benefit program

65

22

Commission Fee

249

311

Miscellaneous expenses

739

65

Total selling, general and administrative expense

8,012

7,704

Operating income (loss)

605

658

Interest income

106Interest on securities

10

Selling, general and administrative expenses
Packing and delivery expenses

Non-operating income

3,295

2,787

Foreign exchange gains

53

9

Others103

103

Total non-operating income

3,464

2,907

Dividends income37

(Millions of yen)
FY2018FY2017(Apr. 1, 2017–Mar. 31, 2018)(Apr. 1, 2018–Mar. 31, 2019)

AmountAmountNon-operating expenses
Interest expenses

38

39

Others55Total non-operating expenses

44

44

4,025

3,522

Gain on sales of noncurrent assets

05Gain on sales of investment securities

641

234

Reversal of allowance for investment loss

213

112

Total extraordinary income

856

352

Loss on retirement of noncurrent assets

94

65

Loss on sales of noncurrent assets

0―Loss on valuation of investments in capital of subsidiaries and affiliates

―

2,448

Loss on sales of golf club memberships―

11

Surcharges

1,998

292

Ordinary income
Extraordinary income

Extraordinary Loss

Total extraordinary loss

2,093

2,817

Income before income taxes

2,788

1,056

Income taxes-current

358

290

Income taxes-deferred

(281)

205

Total income taxes

77

495

Net income(loss)

2,711

560

38

(3) Non-consolidated statements of changes in net assets
Fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018)(Millions of yen)
Shareholders’ Equity
Capital Surplus

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,545

7,306

167

7,473

1,097

Retained Earnings
Other retained earnings
Reserve foradvanced
Generaldepreciation ofreserve
non-current
assetsRetainedearnings
brought
forwardTotal
retainedearnings

3,690

13,525

2－

Dividends from surplus

(477)

(477)

Net income

2,711

2,711

As of April 1, 2017

Reservefordividends

500

Changes of items during
the period
Reversal of reserve foradvanced depreciation of
non-current assets

107

8,130

(2)

Purchase of treasury stock
Disposal of treasury shares
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2018

0

0

―

―

0

0

―

―

(2)

―

2,236

2,234

8,545

7,306

167

7,473

1,097

500

104

8,130

5,927

15,759(Millions of yen)
Shareholders’ Equity

As of April 1, 2017

Valuation and translation adjustments

Treasury
stock

Total
Shareholders’equityValuation difference on
available-for-sale securities(891)

28,653

1,148

Changes of items during
the period
Reversal of reserve foradvanced depreciation of
non-current assets

Total valuation andtranslation adjustments
1,148

―

Total net assets
29,801―Dividends from surplus

(477)

(477)

Net income

2,711

2,711

Purchase of treasury stock

(8)

(8)

(8)

Disposal of treasury shares

0

0

0

Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2018

(101)

(101)

(101)

(8)

2,226

(101)

(101)

2,124

(899)

30,879

1,047

1,047

31,92639

Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ Equity
Capital Surplus

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,545

7,306

167

7,473

1,097

Retained Earnings
Other retained earnings
Reserve foradvanced
Generaldepreciation ofreserve
non-current
assetsRetainedearnings
brought
forwardTotal
retainedearnings

5,927

15,7593－

Dividends from surplus

(795)

(795)

Net income

560

560

As of April 1, 2018

Reservefordividends

500

Changes of items during
the period
Reversal of reserve foradvanced depreciation of
non-current assets

104

8,130

(3)

Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2019

―

―

―

―

―

―

(3)

―

(232)

(235)

8,545

7,306

167

7,473

1,097

500

101

8,130

5,694

15,523(Millions of yen)
Shareholders’ Equity

As of April 1, 2018

Treasury
stock

Total
Shareholders’equityValuation difference on
available-for-sale securities(899)

30,8791,047

Changes of items during
the period
Reversal of reserve foradvanced depreciation of
non-current assets
Dividends from surplus
Net income
Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2019

Valuation and translation adjustments(1)

Total valuation andtranslation adjustments
1,047

Total net assets
31,926

―

―

(795)

(795)

560

560

(1)

(1)
(591)

(591)

(591)

(1)

(236)

(591)

(591)

(828)

(901)

30,642456

456

31,09840

(4) Notes concerning non-consolidated financial statement(Going concern assumptions)Not applicable41