FRIWO with expected moderate start in 2024 - outlook and return to operating
profit in 2024 confirmed

EQS-News: FRIWO AG / Key word(s): Quarterly / Interim Statement/Quarter
Results
FRIWO with expected moderate start in 2024 - outlook and return to operating
profit in 2024 confirmed

08.05.2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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FRIWO with expected moderate start in 2024 - outlook and return to operating
profit in 2024 confirmed

  * Group revenue falls to 20.7 million euros in the first quarter of 2024 -
    EBIT loss of -1.8 million euros

  * E-mobility joint venture in India continues to see dynamic growth in
    demand

  * Outlook: Group revenue of 100 to 120 million euros and balanced EBIT
    confirmed for 2024 - upward trend expected for subsequent years

Ostbevern, May 8, 2024 - As expected, FRIWO - an international manufacturer
of technologically leading chargers and e-drive solutions - made a weaker
start to the 2024 financial year. Group revenue fell to 20.7 million euros
in the first quarter, compared to 30.8 million euros in the same period of
the previous year, which had been positively impacted by the high order
backlog from 2022. The reason for the decline in 2024 was the persistently
weak demand in the European core markets in the e-mobility, industrial and
tools segments. The drop in sales, expected start-up costs for the Indian
joint venture and one-off expenses for the adjustment of production
structures were partially offset by improved cost efficiency, particularly
in terms of personnel costs. While gross profit was roughly on a par with
the previous year, earnings before interest and taxes (EBIT) fell
year-on-year from -1.4 million euros to -1.8 million euros. After taxes, a
loss of -2.7 million euros was reported (Q1-2023: -2.2 million euros).

"As expected, FRIWO has made a moderate start to the 2024 financial year. As
we expect the market to recover in the second half of the year and the cost
efficiency measures to have an increasingly positive impact, we continue to
anticipate a break-even result for the year as a whole. The first license
income from our India joint venture will also contribute to this, from which
we expect increasing profit contributions from 2025 onwards in view of the
continuing dynamic development," commented Rolf Schwirz, CEO of FRIWO AG, on
the development.

Demand for electric bicycles in Europe remains subdued. As a result, neither
incoming orders of 16.3 million euros (Q1 2023: 26.4 million euros) nor the
order backlog of 42.5 million euros (Q1 2023: 77.6 million euros) reached
the previous year's figures. FRIWO has responded to this and further
adjusted the number of employees compared to the end of 2023 from 1,701 to
1,491 as at March 31, 2024. As communicated, this was due to the sale of the
production activities remaining at the Ostbevern site to an associated
company and the acquisition of assets and materials for component production
near Saigon by a Hong Kong company, which will lead to a further reduction
in the number of employees in the second quarter. Both acquirers will in
future act as suppliers for the products and system solutions manufactured
by FRIWO.

The FRIWO Group's total assets decreased to 70.7 million euros as at March
31, 2024, compared to 74.3 million euros as at December 31, 2023. The equity
ratio fell from 17.1% to 14.1%. FRIWO is solidly financed until the end of
2025 thanks to the extension of the existing syndicated loan and shareholder
loans at the end of 2023.

Outlook for 2024 confirmed

The Management Board of FRIWO AG confirms the annual forecast of achieving
Group revenue of 100 to 120 million euros and a balanced Group EBIT in the
2024 financial year, as well as returning to the operating break-even point
over the course of the year. Demand is still expected to pick up in the
second half of 2024. In addition, the cost efficiency measures and the
easing of material and energy costs should have a positive impact. The
result includes further up-front costs for the establishment of the joint
venture in India (FRIWO share 49.9%) operated together with the Indian UNO
MINDA Group, but also initial license income from India, which will have a
positive impact on the result. Demand for FRIWO's e-mobility system
solutions continues to develop dynamically, meaning that increasing profit
contributions are expected in the years from 2025 onwards.

Further information on the company can be found on FRIWO's investor
relations pages at: https://www.friwo.com/en/about/investor-relations/

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

FRIWO Group at a Glance

     in million euros                               1-3/2024      1-3/2023
     Revenue                                            20.7          30.8

     Earnings before interest and taxes (EBIT)          -1.8          -1.4
     EBIT margin in percent                             -8.9          -4.7

Profit before tax (PBT) -2.7 -2.2

Earnings after taxes -2.7 -2.2

Earnings per share in euros -0.32 -0.26

Capital expenditure 0.2 1.4

                                                  03/31/2024    12/31/2023
     Balance sheet total                                70.7          74.3
     Equity                                             10.0          12.7
     Equity ratio in percent                            14.1          17.1

Employees (as at reporting date) 1,491 1,701
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:    1897605

End of News EQS News Service
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1897605 08.05.2024 CET/CEST