E-mobility joint venture in India in full swing, promising talks on market
development in neighboring countries

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

12.06.2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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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


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   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 12.06.2024 CET/CEST