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.
As the transaction has extensive implications for the annual financial statements for 2023 in accordance with IFRS, it is necessary to postpone the publication of the audited key figures and the annual report to April 25, 2024 (previously March 28, 2024).
“We are consistently focusing FRIWO on its core activities and streamlining our cost and asset structures worldwide. This will allow us to react more leanly and flexibly to future market changes and noticeably improve our balance sheet quality and cash flows. Following confirmation of the operating targets for 2023, we see positive momentum for a return to profitability in 2024 and, in view of our great growth potential in Asia, expect sustainable profitable growth in the mid-term,” commented Rolf Schwirz, CEO of FRIWO AG, on the development.
Confirmation of 2023 forecast – Aiming for a return to profitability in 2024
According to preliminary, unaudited key figures, FRIWO has achieved its operating targets for 2023. In October 2023, the forecast for Group sales was adjusted to around 110 million euros and for the operating result (EBIT – earnings before interest and taxes) to a loss in the mid-single-digit million euro range. In this light and in view of the earnings contributions expected from the e-mobility joint venture in India from the second quarter onwards, the FRIWO Management Board expects the company to return to a profitable growth path in the 2024 financial year. With regard to sales development, visibility is still difficult due to the only gradual stabilization of demand in the core business in Europe at the beginning of the year, particularly from the two-wheeler sector. FRIWO is therefore only planning to publish a more concrete sales forecast with the release of the annual financial statements.
Further information on the company can be found on FRIWO’s investor relations pages at: www.friwo.com
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
▪ Oliver Freund joins the company as CFO as of 1 February 2024
▪ Predecessor Tobias Tunsch requests early termination of his Executive Board contract for personal reasons, but will remain with FRIWO in an advisory capacity
▪ Successful extension of the existing financing framework at the end of 2023
Ostbevern, 31 January 2024 – The Supervisory Board of FRIWO AG – an international manufacturer of technically leading chargers and e-drive solutions – has appointed Oliver Freund as a new member of the company’s Executive Board and CFO (Chief Financial Officer) with effect from February 1, 2024. His responsibilities include Finance, Controlling, Accounting, Taxes, Purchasing, IT, Investor Relations and Sustainability. Oliver Freund succeeds Tobias Tunsch, who has asked the Supervisory Board to terminate his Executive Board contract prematurely for personal reasons. However, he will remain with the company in an advisory capacity. Under Tunsch’s leadership, an extension of the existing financing framework was agreed with the company’s banks at the end of the 2023 financial year, meaning that FRIWO can tackle its growth ambitions for the new financial year with a solid balance sheet structure. Oliver Freund complements herewith the existing Executive Board team.
“We are delighted that Oliver Freund, an internationally experienced finance and industry expert, has joined the FRIWO AG Executive Board. His addition supports FRIWO’s successfully initiated strategic ambitions to become a leading global provider of system solutions. I very much regret Tobias Tunsch’s departure from the Executive Board, but of course I respect his personal reasons for doing so. On behalf of my colleagues on the Supervisory Board, I would like to expressly thank him for his achievements for FRIWO in recent years. I would particularly like to emphasize his achievements in the financial stabilization of the Group and his activities in connection with the realization of the pioneering e-mobility joint venture in India,” said Richard Ramsauer, Chairman of the Supervisory Board of FRIWO AG, commenting on the personnel changes.
Professional milestones of Oliver Freund Oliver Freund (56) is a trained industrial clerk and certified restructuring expert. He has more than 35 years of industrial and management experience in international companies with a clear automotive and mobility focus. At the beginning of his career, he worked for Siemens VDO Automotive in various commercial functions for more than 20 years. Subsequently, he was Chief Financial Officer at the Italian Becromal (a subsidiary of the Japanese TDK Group), Commercial Director at Grammer AG and Head of a Business Unit and member of the Executive Management at Yazaki Europe. In recent years, he has worked as an interim manager, especially in restructuring and transformation topics as a managing director or comparable positions in Germany and abroad.
Further information on the company can be found on FRIWO’s investor relations pages at: www.friwo.com
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
▪ Nine-month turnover falls to 89.5 million euros
▪ EBIT slips into the red at -2.3 million euros – earnings impacted by start-up costs for Indian joint venture and negative currency effects
▪ Outlook 2023: Group revenue of around 110 million euros and EBIT loss in the mid single-digit million euro range expected
▪ Positive momentum for 2024 due to expected market recovery in Europe and substantial earnings contributions from e-mobility joint venture in India
▪ Confidence for subsequent years thanks to the unbroken trend towards more e-mobility
Ostbevern, 9 November 2023 – FRIWO – an international manufacturer of technologically leading chargers and e-drive solutions – continues to struggle with persistently weak demand and order cancellations in Europe in the e-mobility, industrial and tools segments. Only the medical segment is developing solidly in line with planning. At 29.9 million euros, Group revenue in the third quarter of 2023 was well below the previous year’s figure of 58.6 million euros. After nine months, FRIWO reported revenue of 89.5 million euros after 131.8 million euros (9M-2022). Due to improved cost efficiency and immediately implemented personnel adjustments, earnings before interest and taxes (EBIT) only deteriorated to -0.6 million euros (Q3-2022: 2.8 million euros) despite the strong decline in sales. A cumulative loss of -2.3 million euros was reported for the first three quarters (9M-2022: 2.9 million euros). This includes high up-front costs for the Indian joint venture and negative currency effects totaling 0.4 million euros. After taxes, there was a loss of 5.3 million euros, following a profit of 1.0 million euros in the same period of the previous year.
As no turnaround is expected for the final quarter of the year either, FRIWO reduced its full-year outlook for 2023 on 20 October 2023 to turnover of around 110 million euros and an EBIT loss in the mid single-digit million euro range. This does not include any burdens from cost efficiency measures that may still be necessary in 2023.
“After the record year 2022, the course of business in 2023 was characterized by a massive weakness in demand and the cancellation of existing orders in Europe. However, our e-mobility joint venture in India remains on a dynamic growth trajectory, which will have a positive impact on our earnings from 2024 onwards,” comments Rolf Schwirz, CEO of FRIWO AG, on the development.
Number of employees adjusted to market demand
The negative trend in 2023, which was primarily caused by the market saturation for electric bicycles in Europe, is also reflected in the sharp decline in order intake, which amounted to just 63.9 million euros as at 30 September 2023 (30 September 2022: 138.6 million euros), and in the order backlog of 54.5 million euros (comparable prior-year figure: 119.8 million euros). FRIWO has responded to the market weakness and adjusted the number of employees, more than 80% of whom are employed in Vietnam, from 2,501 at the end of 2022 to 1,860 by 30 September 2023.
Balance sheet quality remains sound, focus on working capital management
The business performance also led to a significant decrease in total assets from 105.0 million euros at the end of 2022 to 82.1 million euros. The equity ratio remained almost stable at 23.4% ( 31 December 2022: 23.7%) and working capital was reduced to 34.4 million euros. The FRIWO Executive Board is in close contact with the principal banks to extend the existing financing framework.
Expected upturn in 2024 will be driven primarily by substantial earnings contributions from the e-mobility joint venture in India
The Executive Board of FRIWO AG is confident of returning to a growth trajectory in 2024 due to an expected recovery in demand in Europe, but above all due to the substantial earnings contributions expected from the e-mobility joint venture in India and the new US business set up in 2023. Production at the site near New Delhi, which is operated jointly with the Indian UNO MINDA Group, started at the end of June and is gradually being ramped up as planned. This is based on incoming orders and letters of intent in the mid three-digit million euro range for e-drive solutions from Indian and now also three Japanese two- and three-wheeler manufacturers. The joint venture – in which FRIWO holds a 49.9% stake – is expected to receive its first orders from India’s neighboring countries as early as 2023. UNO MINDA and FRIWO are therefore well on the way to achieving the market-leading position they are aiming for in the booming Indian e-mobility market for two- and three-wheeled vehicles. Industry experts estimate the targeted market volume at around 4.5 million vehicles by 2027.
Further information on the company can be found on FRIWO’s investor relations pages at: www.friwo.com
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
▪ New owner Private Assets takes over the Ostbevern production site and will act as a contract manufacturer for FRIWO products manufactured in Europe in the future
▪ Employees to be taken over by Private Assets, substantial savings potential expected at FRIWO
▪ Stronger focus of the FRIWO Group on core activities in the e-mobility sector
▪ Continued confidence for 2024 thanks to recovery of business in Europe and earnings contributions from India and the USA
Ostbevern, December 29, 2023 – FRIWO – an international manufacturer of technically leading chargers and e-drive solutions – is divesting its remaining production activities at the Ostbevern site. The new owner, Hamburg-based investment company Private Assets SE & Co. KGaA, is taking over the Ostbevern production site and will act as a contract manufacturer for FRIWO products manufactured in Europe. The employees involved in these activities will be taken on by the buyer. Private Assets plans to expand the acquired production facilities by acquiring additional customers in the coming years. The parties have agreed not to disclose the purchase price. FRIWO remains strongly committed to the Ostbevern site. The other activities of the company located there, i.e. Group administration, sales and product management as well as research & development, are largely unaffected by the transaction. The land and real estate will remain in the company’s ownership.
“We are delighted to have found an ideal partner in Private Assets for our production facilities remaining in Ostbevern and the employees involved. The transaction will help FRIWO to focus more strongly on the growth areas of e-mobility and will make a noticeable contribution to improved cost efficiency from 2024. Our commitment to the Ostbevern site as a regional anchor remains strong,” commented Rolf Schwirz, CEO of FRIWO AG, on the news.
“As a quality leader with production in Germany, FRIWO’s EMS division is in an excellent position to succeed independently on the market,” adds Private Assets CEO Sven Dübbers. “We still see great growth potential in the third-party business in particular. We are focusing on consistent customer orientation in order to fully exploit this potential.”
Significant upturn expected in Europe from 2024 and substantial earnings contributions from the e-mobility joint ventures in India
The transaction will noticeably improve FRIWO’s cost efficiency from 2024. This and the emerging recovery in demand in Europe, as well as the substantial earnings contributions expected from the e-mobility joint venture in India and from the new US business set up in 2023, should lead to FRIWO returning to a profitable growth trajectory in the coming financial year. The joint venture for e-mobility solutions in India, which is operated together with the Indian UNO MINDA Group, is continuing its dynamic growth. The already communicated volume of incoming orders and letters of intent in the mid-triple-digit million euro range for e-drive solutions from Indian and Japanese two- and three-wheeler manufacturers continues to rise. FRIWO expects significant license and investment income from 2024 onwards. FRIWO, which holds a 49.9% stake in the joint venture, is also in advanced talks for orders from India’s neighboring countries. These are to be processed locally with partners from 2025 at the latest and are not included in the joint venture.
Further information on the company can be found on FRIWO’s investor relations pages at: www.friwo.com
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
Ostbevern, 20 October 2023 – FRIWO – an international manufacturer of technically leading chargers and e-drive solutions – must once again adjust its annual forecast for 2023 downwards in view of a further tightening of the demand situation in Europe in the e-mobility, industrial and tools segments. Only the medical segment is developing solidly. After the operating development in the third quarter was also significantly below the previous year’s level and the order situation did not pick up as expected, the Executive Board now expects a total annual turnover of around 110 million euros. This is based on the premise that there will be no further cancellations or postponements of existing orders from customers in the fourth quarter, as has happened so far in 2023. Previously, the expectations here were 120 – 130 million euros. The lack of turnover will also have a noticeable negative impact on the result. Thus, instead of the previously forecast balanced
EBIT (earnings before interest and taxes), an EBIT loss in the mid single-digit million euro range is now anticipated. This includes substantial start-up costs for the India joint venture and negative currency effects. In view of the weak operational development, the Executive Board reserves the right to take measures to improve cost efficiency. The resulting burdens are not included in the above forecast.
FRIWO continues to see a fundamentally positive trend towards e-mobility drive solutions and a return to sustainable profitable growth from 2024. This is based on a revival of business activity in Europe, increasing contributions from the North American business and substantial licensing income from the still dynamically growing e-mobility business in India. The joint venture operated together with the Indian UNO MINDA (FRIWO holds 49.9%) has already been successfully producing in the new production facility near New Delhi since June 2023 and is supplying Indian two- and three-wheeler manufacturers with e-drive solutions as planned. Prospects for the future are very promising in view of incoming orders and letters of intent in the mid three-digit million euro range from regional and Japanese customers. Further contracts are expected to be signed in the coming quarters, for the first time also from India’s neighbouring countries.
FRIWO will publish the report on the first nine months of the 2023 financial year as planned on 9 November 2023.
Contact Investor Relations und Medien
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
▪ Dr Walter Demmelhuber joins the Executive Board team as of 1 October 2023
▪ His responsibilities include sales for the core business as well as operations (excl. India)
▪ Appointment underscores FRIWO’s global growth ambitions as a leading e-mobility solution provider
Ostbevern, 4 October 2023 – The Supervisory Board of FRIWO AG – an international manufacturer of technically leading chargers and e-drive solutions – has appointed Dr Walter Demmelhuber as a further member of the company’s Executive Board with effect from 1 October 2023. His responsibilities include sales for the core business as well as operations (excluding India). He thus complements the existing Executive Board team with CEO Rolf Schwirz, who will increasingly focus on the rapidly growing e-drives business, R&D and Human Resources. In addition, Tobias Tunsch will continue to be responsible as Chief Financial Officer for Finance, Controlling, Accounting, Taxes, Purchasing, IT, Investor Relations and Sustainability.
“We are pleased to have gained Dr Demmelhuber, an internationally experienced industry expert, for the Executive Board of FRIWO AG. Together with his two colleagues on the Executive Board, he will drive forward the company’s successful development into a leading global provider of e-mobility solutions and lead FRIWO on its targeted path of profitable growth”, comments Richard Ramsauer, Chairman of the Supervisory Board of FRIWO AG, on the appointment.
Professional milestones Dr Walter Demmelhuber
Dr Walter Demmelhuber (53) is a trained industrial mechanic, specialised in sales & export during his studies, has been a guest lecturer for business informatics at the university of Erlangen-Nürnberg (FAU) for 12 years and has more than 25 years of management experience in international industrial companies. At the beginning of his career, among other things, he held management positions at Siemens and EADS Airbus for several years with a focus on new business development & strategy. Afterwards, between 2009 and 2016, as Managing Director, he was jointly responsible for the international expansion of the Semikron Group, a family-owned company specialising in components of power electronics. Between 2017 and 2019, as a board member of the Pfisterer Holding, he was involved in the expansion of the company during challenging times before becoming sole director of the Jäger Group in 2019. At the C-parts and tool wholesaler, in addition to the shareholder transition in the family business, he led the modernization of the business model and international expansion as well as projects to improve profitability and modernise IT structures.
Further information on the company can be found at www.friwo.com
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.d
▪ Presentation of pioneering, innovative e-mobility drive systems in Munich from September 5 to 10
▪ Globally unique modular system comprising display, motor control unit, drive unit, battery pack and charger with proprietary software
▪ Personalized ride profiles: sporty, economical or relaxed
▪ Presentation of the innovative “e-load” e-bike charging station
▪ Consistent focus on sustainability
Ostbevern, September 1, 2023 – FRIWO – an international manufacturer of technically leading chargers and e-drive solutions – will present its innovative e-mobility product offerings at IAA MOBILITY from September 5 to 10, 2023 at the Munich Exhibition Center in Hall A2, Booth B22. FRIWO Gerätebau presents the future of mobility thanks to innovative pioneering drive systems that revolutionize electromobility. The focus is on customized solutions for high-performance drive systems from efficient power electronics to intelligent control and service software solutions.
Unique modular system for electric drives for two- and three-wheel vehicles
One of the revolutionary possibilities is to offer users a choice of different driving profiles. With a globally unique modular system comprising display, motor control unit, drive unit, battery pack and charger, supplemented by powerful software, the vehicle can adopt different characteristics depending on the driver’s preferences or requirements, be it sporty, economical or relaxed. At the same time, the software allows the digital displays in the vehicle to be fully customized to the manufacturer’s corporate design, creating a tailored brand environment and strengthening the brand image.
Innovative e-bike charging station ”e-load”
FRIWO specifically uses its extensive expertise in the field of charging technology to place a special focus on promoting micromobility and expanding the charging infrastructure. This is clearly demonstrated by the groundbreaking development of the innovative ”e-load“ e-bike charging station, which has already been awarded the Red Dot 2023 and the IF Design Award. This charging station not only marks the closing of a significant gap in the market for e-bike charging infrastructure, but also makes e-bike use even more convenient and attractive.
”We are looking forward to presenting our innovative solutions in the field of electromobility at this year’s IAA MOBILITY in Munich. Our range of services is unique worldwide thanks to our modular system based around the necessary hardware and software developed in-house. In this way, we aim to become one of the world’s leading suppliers of electromobility for two- and three-wheelers. Our new offering in the field of e-bike charging structure rounds off our portfolio”, comments Rolf Schwirz, CEO of FRIWO AG.
Sustainability in focus
FRIWO’s mission is to drive sustainability! Accordingly, the company optimizes energy consumption thanks to innovative technologies and environmentally friendly solutions and sets new standards around the topic of electromobility, which at the same time fundamentally change the driving experience.
For more information on FRIWO’s diverse offering, visit the company website: www.friwo.com.
Contact
FRIWO AG
Peter Dietz
+49 (0 )69 97 12 47 33
dietz@gfd-finanzkommunikation.de
• Quarterly turnover of 28.8 million euros significantly below previous year – EBIT almost balanced
• Result includes negative impact due to pre-production costs for Indian joint venture and negative currency effects
• Outlook 2023: Group revenue of 120 – 130 million euros and balanced EBIT expected
• E-mobility joint venture in India ramps up production to work off high order backlog – substantial earnings potential from 2024 onwards
• Great medium- and long-term potential thanks to unbroken trend towards more e-mobility
Ostbevern, 10 August 2023 – FRIWO – an international manufacturer of technically leading chargers and e-drive solutions – was hit by the pronounced weakness in demand in Europe at the beginning of the year, especially from the e-mobility segment, after a solid business performance in the previous year. The tools and industrial segments are also affected by the poor economic development in Europe in 2023. Only the medical segment is developingaccording to plan. Therefore, the company had already anticipated a significantly more restrained development after the boom year of 2022. As a result, turnover in the second quarter of 2023, at 28.8 million euros, was substantially below the comparable figure for the previous year (44.2 million euros). At the six-month mark, the company reported revenues of 59.7 million euros, down from 73.2 million euros (H1-2022). Despite the very significant revenue decrease, FRIWO was able to achieve almost balanced earnings before interest and taxes (EBIT) of -0.2 million euros in the reporting quarter (Q2-2022: 1.1 million euros) due to successful cost efficiency measures. At the end of the first half of the year, earnings were down 1.7 million euros (H1-2022: 0.1 million euros). This includes substantial pre-production costs for the Indian joint venture and negative currency effects. After taxes, the six-month result was -3.7 million euros, compared to -1.1 million euros in the same period of the previous year.
Since no positive stimuli are expected in the second half of the year either, especially from the e-mobility sector, FRIWO had already adjusted its full-year revenue outlook for 2023 from 140-160 million euros to 120-130 million euros on 7 July 2023. Nevertheless, a balanced EBIT is expected for the result.
“Even if the current development of sales is disappointing after the boom year of 2022, we see great growth potential for FRIWO in the future in the European core markets in view of the generally unchanged trend towards more e-mobility solutions. From 2024 onwards, we also expect substantial contributions to earnings from our joint venture in India and a growing business in North America,” says Rolf Schwirz, CEO of FRIWO, commenting on the development.
Market saturation for e-bikes is noticeable in the order book situation
Market saturation for e-bikes is noticeable in the order book situation. As of 30 June 2023, FRIWO had an order backlog of 63.9 million euros, significantly below the comparable figure for the previous year (127.0 million euros). At 41.8 million euros, incoming orders after six months were also significantly below those of the comparable period in 2022 (93.9 million euros).
Balance sheet quality remains sound – number of employees decreased
Against the backdrop of a reduced balance sheet total of 91.4 million euros compared to 105.0 million euros at the end of 2022, FRIWO continues to have a solid balance sheet quality with an equity ratio of 22.8% (31 December 2022: 23.7%). As planned, the working capital was reduced by the end of the first half of 2023. The number of employees in the FRIWO Group, of which more than 80% continue to be employed in Vietnam, decreased to 1,987 by 30 June 2023, compared to 2,501 at the end of 2022.
Continuing trend towards more e-mobility solutions – joint venture in India to increase production to meet high demand
Despite the currently more restrained demand, the growth trends in all segments of the group are intact according to the Executive Board’s assessment, driven in particular by an unbroken trend towards more and more e-mobility solutions and services. From 2024 onwards, a significant upturn in earnings is then expected due to the anticipated significant profit contributions from the booming e-mobility business in India and a marked upturn in business activity in Europe and North America.
Production at the site near New Delhi, which is operated jointly with the Indian UNO MINDA Group, started in June and will be gradually ramped up. The joint venture – in which FRIWO holds a 49.9% stake – is thereby responding to the unbroken high demand from Indian and Japanese two- and three-wheeler manufacturers for e-drive solutions. Currently, the company has received orders and letters of intent in the mid three-digit million-euro range and has begun to process them. Further contracts are expected to be signed in the coming quarters. UNO MINDA and FRIWO are aiming for a market-leading position in the booming Indian e-mobility market for two- and three wheeled vehicles, through which a large part of mobility in India takes place. Industry experts estimate the addressed market volume at around 4.5 million vehicles by 2027.
The 2023 half-year financial report and additional information on the company are available on the website: https://www.friwo.com/en/about/investor-relations/
Download the press release as pdf
Download the half-year report 2023 as pdf (German only)
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
In today’s fast-paced industrial landscape, digitalization and system connectivity have the potential to change everything. The Industrial Internet of Things (IIoT) has emerged as a driving force, empowering manufacturers to harness the power of data, connectivity, and cloud computing to revolutionize their operations. FRIWO, in collaboration with Zühlke and AWS, has taken a groundbreaking step to transform the manufacturing industry. Together, they have created an innovative and scalable IT ecosystem that allows for seamless control of globally distributed production lines from the cloud.
The Industrial Internet of Things brings a transformative change to industrial manufacturing by infusing conventional production systems with intelligence and connectivity. By integrating smart sensors, automation, and cloud technologies, manufacturers gain real-time insights into their operations, resulting in increased efficiency, reduced downtime, and optimized resource utilization.
Recognizing the transformative potential of Industrial IoT, FRIWO set out on a mission to develop a future-proof and globally scalable solution for production control. Their vision was clear: optimize processes, synchronize global production lines and achieve unprecedented levels of productivity. To turn this vision into reality, they joined forces with Zühlke, a renowned expert in digitalization and IoT solutions, and Amazon Web Services (AWS), the leading cloud services provider.
The collaboration between FRIWO, Zühlke, and AWS marks a turning point in the world of industrial manufacturing. Each partner brings its unique expertise, fostering an environment of innovation and creativity. Zühlke’s competence in IoT and digital transformation provided the foundation for designing a robust and interconnected ecosystem. AWS’s cloud infrastructure ensures not only scalability but also fortifies the system with top-notch security and reliability.
Increased Efficiency: The cloud-based solution developed by FRIWO, Zühlke, and AWS enables seamless communication and data transfer across all globally distributed production lines. Leveraging real-time data, manufacturers can optimize processes, minimize bottlenecks, and maximize efficiency.
Global Control and Synchronization: With the power of the cloud, production facilities worldwide can be centrally monitored and controlled. This level of control allows for quick adjustments, standardized processes, and real-time tracking of key performance indicators.
Scalability and Flexibility: Designed as a future-proof solution, the IT ecosystem can adapt and expand with the evolving industry demands. Whether it involves increasing production capacity or integrating new facilities, the system seamlessly accommodates growth.
Enhanced Data Security: The partnership with AWS ensures secure storage, processing, and transmission of data. The manufacturers are guaranteed that their sensitive production data is protected by state-of-the-art security measures.
The collaboration between FRIWO, Zühlke, and AWS is more than a partnership; it exemplifies the power of synergies in driving innovation. By embracing the potential of Industrial IoT and cloud-based control, this trio has unlocked new horizons for the manufacturing industry.
The future of industrial production looks promising, with increased efficiency, optimized processes, and sustainability at the forefront. FRIWO’s unwavering commitment to innovation, combined with Zühlke’s expertise and AWS’s cloud prowess, lays the groundwork for a digital revolution in manufacturing.
The Industrial Internet of Things is transforming the way we produce and manufacture goods. With FRIWO’s visionary approach and the collaborative efforts of Zühlke and AWS, the industrial landscape is being redefined. This future-proof IT ecosystem promises to be a game-changer, empowering manufacturers to operate globally, optimize their processes, and pave the way for a more efficient and connected industrial future. Together, they are at the forefront of a digital revolution that will shape the manufacturing industry for years to come.
You can also read the content published by Zühlke at: www.zuehlke.com
▪ Considerable decline in demand in Europe, especially in the e-mobility segment after boom year 2022
▪ Turnover and earnings in the second quarter noticeably below previous year’s level
▪ Additional negative impact due to start-up costs for India joint venture and adverse currency effects
▪ Outlook 2023 adjusted: Group revenue of 120 – 130 million euros and balanced EBIT expected
▪ E-mobility joint venture in India on track after start of production, high order backlog promises great earnings potential from 2024 onwards
Ostbevern, 7 July 2023 – FRIWO – an international manufacturer of leading technical charging devices and e-drive solutions – has to adjust its full-year forecast for 2023 against the backdrop of a noticeable drop in demand in Europe, especially from the e-mobility segment. After the booming year of 2022, the company had already anticipated a significantly more subdued development and at the end of March 2023 published a revenue forecast corresponding to 140 – 160 million euros (2022: 185 million euros) with a slight increase in profitability. Following a significantly lower development in the second quarter compared to the previous year, the company’s Executive Board has now reduced the annual targets for this financial year to 120 – 130 million euros revenue and a balanced EBIT (earnings before interest and taxes). This includes substantial costs for the start-up of the India joint venture and adverse currency effects.
General trend towards more e-mobility solutions continues
Based on a solid order backlog, FRIWO expects the development of demand from the e-mobility sector to pick up slightly in the second half of the year compared to the first half. In view of a continuing positive trend towards e-mobility drive solutions, FRIWO also expects a return to sustainable profitable growth from 2024. The Tools and Industrial segments are also affected by the poor economic development in Europe in 2023. Only the Medical segment is developing in line with the plans. In the medium term, however, the Executive Board believes that the growth trends in all segments of the Group are intact. From 2024 onwards, earnings are then expected to pick up significantly due to the expected substantial profit contributions from the booming e-mobility business in India and a significant pick-up in business activity in Europe and North America.
“As anticipated, demand from the e-mobility sector this year cannot match the boom year of 2022. After the second quarter developed weaker than expected, we have to adjust our annual forecast for 2023. However, in view of a generally positive trend towards e-mobility solutions and earnings contributions from our joint venture in India expected from 2024 onwards, as well as growing business from North America, FRIWO is very confident of returning to a sustainably profitable growth path from the next financial year onwards,” comments Rolf Schwirz, CEO of FRIWO AG.
Production for e-mobility solutions in India started in the second quarter
The basis for the great optimism is the continuing very high demand for e-mobility solutions for the dynamically growing market in India, which is served via the joint venture with UNO MINDA through a production plant near New Delhi. As previously announced, the production facility went into operation in the second quarter of 2023 and supplies the first Indian two- and three-wheeler manufacturers with e-drive solutions. These include the necessary hardware as well as a suitable software architecture. The joint venture, in which FRIWO holds a 49.9% stake, has already received its first order from a Japanese customer, in addition to incoming orders and letters of intent in the mid three-digit million euro range from regional customers. Further contracts are expected to be signed in India and with Japanese producers in the coming quarters. The joint venture is aiming for a market-leading position in the booming Indian e-mobility market for two- and three-wheeled vehicles, through which a large part of mobility in India takes place. Industry experts estimate the addressed market volume at around 4.5 million vehicles by 2027.
FRIWO will publish its report on the first six months of the 2023 financial year on 10 August 2023 as planned.
Download the press release as pdf
Contact Investor Relations und Medien
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