Hirata Corporation is pleased to announce that we have recently been awarded a large-scale purchase order for the assembly line of the “Drive Unit (EDU: Electrical Drive Unit)*” for electric vehicles (EVs).

I. Background of order received

• We globally manufacture and sell various production equipment for industries such as automobiles (EVs, internal combustion engines and hybrid), semiconductors, and home appliances.
• In the automotive field, in addition to internal combustion engine-related equipment, we have been involved in EV-related production equipment since the fiscal year 2016.
• This time, our ability to respond to the assembly lines for EV drive units, which we have delivered in the past, has been evaluated, particularly in terms of technology, quality, delivery time, etc., leading to this order.
• In particular, we believe that our active participation in the project from the customer's conceptualization stage and our technical proposals that contributed to solving the customer's issues were highly evaluated.
• We will continue to work on developing products and improving quality to meet the diverse needs of our customers in the EV market, which is expected to sustain growth in the future.

II. Overview of the order

1. Contract Amount: Approximately 8.7 billion yen (including the portion to be handled by our North American operations)
2. Contract Equipment: Assembly line for EV drive units
3. Customer: The customer name will not be disclosed due to confidentiality obligations. There are no capital or personnel relationships to disclose between the customer and our company, and this transaction does not involve any related parties.
4. Production base: Kumamato East Factory (Kumamoto City, Kumamoto Prefecture), Shichijo Factory(Kikuchi City, Kumamoto Prefecture)

III. Impact to Business Performance

This project will recognize sales in accordance with the progress of the construction. Therefore, a portion of the sales from the above contract will be reflected in the current fiscal year's performance forecast, while some will contribute to the performance of future fiscal years.

*Drive Unit for EV (EDU) : It refers to the components used for the startup of EVs,which combine the motor, gearbox, and inverter.  It is known by the name “eAxle” in Japan.