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EQS-News: FRIWO AG / Key word(s): Miscellaneous/Miscellaneous
E-mobility joint venture in India in full swing, promising talks on market development in neighboring countries
2024-06-12 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
E-mobility joint venture in India in full swing, promising talks on market development in neighboring countries
. Six of the world's seven largest two- and three-wheeler manufacturers are already customers
. New FAME III funding program from the Indian government expected
. Promising talks about first customer orders and production in Indonesia and Vietnam
. FRIWO anticipates a significant increase in license and investment income
Ostbevern, June 12, 2024 - The joint venture between FRIWO and the Indian UNO MINDA Group for electric drive solutions
for two- and three-wheeled vehicles in India, which was launched two years ago, is running at full speed following the
start of production in 2023 at the joint production facility south of New Delhi. Six of the seven most important
producers of two- and three-wheelers are currently customers of the joint venture. These include the largest motorcycle
manufacturers from Japan as well as India. Mass production for electronic components and e-mobility solutions has
already begun for three of these customers, while the parties are still working on development projects for a further
three, which are also set to go into mass production in the near future. In addition, further talks are underway, some
of which are at an advanced stage, regarding orders that could significantly increase the sales potential for
subsequent years. In this case, an expansion of the existing production area of around 15,000 square meters has already
been discussed. UNO MINDA holds 50.1% and FRIWO 49.9% of the joint venture.

New Indian government support program could generate additional demand
The joint venture can also hope for extensive support from the Indian government. The existing government program to
promote electric vehicles, FAME (Faster Adoption and Manufacturing of Electric Vehicles), is set to be significantly
expanded for a third time. A budget of almost 100 billion Indian rupees (equivalent to around 1 billion euros) is said
to be earmarked for this. According to rumors, the plan is to be implemented within the first 100 days after the new
government, which has just been elected, takes office. Among other things, FAME III is intended to offer financial
incentives for the purchase of electric two- and three-wheeled vehicles.
The joint venture is already a market leader in e-mobility drive solutions for two- and three-wheelers in India and is
aiming for a substantial share of the market volume, which is expected to reach around 4.5 million vehicles by 2027.
According to experts, the aforementioned support measures and initiatives by the Indian government to combat massive
environmental pollution should increase the share of vehicles with electric drives to around 15% of the total market
potential for two- and three-wheelers.
"We are very satisfied with the development of our India joint venture. Mass production for several customers has
already started at our new production plant and we are in advanced development projects with others. The Indian
government's new incentive program for more electromobility, which is expected in the near future, should further
support our growth ambitions. In addition, as announced, we are also in good talks regarding the expansion of our
involvement in other Southeast Asian countries such as Indonesia and Vietnam," commented Rolf Schwirz, CEO of FRIWO AG.

FRIWO can expect increasing license and investment income
FRIWO will receive license income of 4% from the joint venture for the contribution of its unique technological
expertise in electric drive systems once the break-even point is reached. As a result, the company can expect a
significant increase in license and investment income in the coming years. As announced, this is unlikely to reach a
significant level in the current financial year, even against the backdrop of the necessary start-up investments.

Great market potential in other Southeast Asian countries
Similar to India, other nations in Southeast Asia are also increasingly striving to significantly increase the share of
electromobility in road transportation. This applies in particular to Indonesia and Vietnam, where FRIWO is in advanced
talks regarding the initiation of partnerships with regional two- and three-wheeler manufacturers and is also planning
to outsource parts of its production to its existing Indian joint venture partner UNO MINDA. The resulting great market
potential is also supported by the efforts of the leading Japanese vehicle manufacturers in the region to establish a
standardized range of solutions for their two- and three-wheelers for the Asian markets and possibly even worldwide.
FRIWO already has successfully established customer contacts here via the Indian joint venture. However, significant
revenue is not expected until 2026 at the earliest, although this would be directly attributable to FRIWO depending on
the planned cooperation with regional partners and would not be recognized as license income.

Contact investor relations and media
FRIWO AG
Ina Klassen
+49 (0) 2532 81 869
ir@friwo.com
Peter Dietz
+49 (0) 69 97 12 47 33
dietz@gfd-finanzkommunikation.de

About FRIWO:
FRIWO AG, listed in the General Standard of the Frankfurt Stock Exchange and headquartered in Ostbevern/Westphalia, is
an international manufacturer of technically leading chargers and e-drive solutions. FRIWO offers a whole range of
applications with customized systems from a single source. Founded in 1971, the company has evolved from a supplier of
power supply products to a full-range provider of sophisticated and customized solutions for electromobility. Today,
the product portfolio includes not only high-quality power supply solutions, but also battery charging solutions for a
wide range of applications. In addition, all components of a modern electric drive solution are also available: from
the display to the motor control and drive unit to the control software. With modern development centres, production
facilities and sales locations in Europe, Asia and the USA, FRIWO is present in all the world's major markets. FRIWO's
most important customers are leading brands in their respective markets and rely on FRIWO products to provide their
customers with the highest quality. The main shareholder of FRIWO AG is a subsidiary of VTC GmbH & Co. KG, Munich. For
more information, please visit our website at https://www.friwo.com
2024-06-12 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Archive at www.eqs-news.com  
Language:     English 
Company:      FRIWO AG 

Von-Liebig-Straße 11
48346 Ostbevern
Germany

Phone:        +49 (0)2532 81-0 
Fax:          +49 (0)2532 81-129 
E-mail:       ir@friwo.com 
Internet:     www.friwo.com/de/about/investor-relations/ 
ISIN:         DE0006201106 
WKN:          620110 
Listed:       Regulated Market in Berlin, Dusseldorf, Frankfurt (General Standard); Regulated Unofficial Market in 

Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1922929

End of News EQS News Service
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1922929 2024-06-12 CET/CEST

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June 12, 2024 02:00 ET (06:00 GMT)