EQS-News

FRIWO streamlines production structures in Vietnam – operating targets confirmed for 2023 with the aim to return to profitability in 2024

EQS-News: FRIWO AG / Key word(s): Annual Report/Alliance FRIWO streamlines production structures in Vietnam – operating targets confirmed for 2023 with the aim to return to profitability in 2024 21.03.2024 / 08:00 CET/CEST The issuer is solely responsible for the content of this announcement. FRIWO streamlines production structures in Vietnam – operating targets confirmed for 2023 with the aim to return to profitability in 2024

• Group Intellect Power Technology from Hong Kong takes over two component production sites in Vietnam and will act as a contract manufacturer for FRIWO in the future
  • Noticeable improvement in balance sheet quality and cash flow expected
  • Implications for annual financial statement 2023: Postponement of publication of the audited key figures to April 25, 2024
• Operating targets for 2023 achieved
• For 2024, the aim is to return to profitability

Ostbevern, March 21, 2024 – FRIWO - an international manufacturer of technically leading chargers and e-drive solutions - is continuing to focus on its core activities. After announcing the separation of its production activities remaining at the Ostbevern site at the end of 2023, the company is now streamlining its production structures in Vietnam. To this end, an asset deal was signed with Group Intellect Power Technology (GIPT), under which the Hong Kong-based company will acquire assets and materials for component production near Saigon. GIPT will act as a supplier of subcomponents for FRIWO's products and system solutions manufactured in Vietnam. The parties have agreed not to disclose the purchase price. FRIWO will retain two Vietnamese production sites, where the production and configuration of e-mobility power systems and power supply solutions will take place. This step will significantly improve FRIWO's balance sheet quality, working capital and cash flow by transferring significant assets and inventories as well as substantial goodwill as early as 2024. Cost efficiency will also increase after deducting the costs for the contract manufacturing of components, as the number of employees working at FRIWO Vietnam will be reduced by around 500 to around 1,100.