Jeepneys are iconic public utility vehicles in the Philippines, representing 40% of public transport

Total addressable market estimated at US$10bn+ (excluding charging and other ancillary solutions)

Established in 1947, Francisco Motors is the original pioneering jeepney manufacturer

Francisco Motors and Tembo are already working towards delivering on committed orders

Deal will benefit Tembo’s customer and partners in other industries including mining & defence

Tembo to gain access to low-cost assembly and manufacturing in Philippines

Tembo E-LV, a subsidiary of the NASDAQ listed B Corp, VivoPower International, is pleased to announce that it has signed a definitive joint venture agreement with Francisco Motor Corporation, the pioneering manufacturers of the iconic jeepneys in the Philippines, which are primarily used for public transportation. Pursuant to the Agreement, Tembo will develop and supply electric utility vehicle (EUV) electrification kits for a new generation of electric jeepneys. Francisco Motors and Tembo have already secured their first orders and have commenced work to deliver on these jeepneys.

One of the Philippines’ cultural icons, jeepneys are the most common utility vehicle in the Philippines and the main mode of public transportation in the country, accounting for just over 40% of public transportation. There are more than 200,000 jeepneys on the road in the Philippines, of which more than 90% are at least 15 years old and running on second-hand diesel engines. In urban areas, jeepneys contribute up to 94% of ultrafine soot particles that are related to adverse respiratory and cardiovascular effects, increased cases of asthma, and premature deaths.

In June 2017, the Philippine government, through the Department of Transportation (DOTr), announced its plan to modernise the public transportation industry. Under the Public Utility Vehicle Modernisation Program (PUVMP), the DOTr requires that all jeepneys and other Public Utility Vehicles (PUVs) with at least 15 years of service be replaced with more energy-efficient and environment-friendly alternatives. The initiative provides jeepney drivers and operators the option of switching to Euro 4-compliant or electric engine vehicles. This creates a US$10bn+ addressable market for the replacement of the old jeepneys. In addition to the potential market for electric vehicles, the conversion of diesel-powered jeepneys to electric can reduce the carbon emissions of jeepney operations in the country. It can also significantly increase jeepney operators’ income by reducing daily fuel/energy costs by up to 80%, saving up to PhP60 billion per year for all the jeepneys operated in the Philippines.

Elmer Francisco, Chairman of Elmer Francisco Motor Corporation, said: “We are absolutely delighted to have signed this landmark deal with Tembo. We have had multiple approaches from various OEMs and electrification partners around the world, but the VivoPower and Tembo teams stood out for their genuine commitment to a purpose beyond solely the profit motive. In addition, we were impressed with the quality of their technical team and experience comprising world-class engineers formerly with the likes of Tesla, Rivian, Toyota, and others. Given the importance of the jeepney sector to the Philippines, the climate, the livelihoods of so many drivers, and the health and well-being of so many Filipinos, we wanted to be very careful and selective of who we partnered with for this iconic mission. We look forward to getting to work immediately given the initial orders we already have and the immediate pipeline of 37,000 jeepneys to be electrified. We look forward to a long and fruitful partnership with Tembo and VivoPower.”

Kevin Chin, VivoPower’s Executive Chairman and Chief Executive Officer, said: “We are honoured to have signed this exclusive definitive agreement with Francisco Motor Corporation to electrify the jeepneys, a much-loved cultural icon in the Philippines. Francisco Motors are the original pioneers of the jeepney, launching in 1947 post the ending of World War II. We stand in solidarity with Elmer Francisco, Chairman of Francisco Motors, in our shared mission to electrify and rejuvenate the jeepney in a manner that preserves the original design and look, as well as importantly improves the livelihood of the people employed by the jeepney industry.

“In addition, this will contribute to a significant reduction in carbon emissions in the Philippines, with jeepneys accounting for an estimated 4 million tonnes of CO2 emission per annum, not to mention the very significant addressable market opportunity. As a certified B Corporation, we believe this comprehensively ticks all the boxes of our triple bottom line mantra of people, planet, and profit. Beyond the triple bottom line impact, this development will also bring consequential benefits for Tembo’s EUV programmes for other industries including mining, defence, infrastructure and utilities, conservation parks, and agriculture amongst others. In particular, the transformational economies of scale, buying power, and access to low-cost assembly and manufacturing capabilities will help to further materially reduce the bill of material costs in the future for the benefit of our customers in industries such as mining, and defence.”

To read our full press release, and to keep up with all of Tembo’s releases, visit our Press Releases page.

About Francisco Motors

Founded in 1947, Francisco Motors is the pioneering creator and manufacturer of the jeepney in the Philippines. Headquartered in Manila in the Philippines, Francisco Motors is leading the transition from manufacturing traditional diesel-powered jeepneys to modern electric jeepneys to help the Philippines in transitioning to cleaner modes of public transportation.

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Agreement with Fourche Maline to sell 2,500 Tembo EUV kits over the next 5 years

Ghana is the largest producer of gold in Africa and ranks amongst the top 6 globally

Ghana’s government has launched the Drive Electric Initiative through the Ghana Energy Commission

VivoPower is pleased to announce that it has signed a definitive agreement with Fourche Maline, a fully indigenous Ghanaian engineering and technical services company for it to market, distribute, and service Tembo-powered electric utility vehicles (EUVs) across Ghana. Fourche Maline provides engineering and technical services in the local Ghana market to a number of the world’s leading companies in the Oil & Gas, Mining, Power & Energy, and Food & Beverage sectors.

Under the Agreement, Fourche Maline has committed to sell a total of 2,500 Tembo EV conversion kits from execution of this Agreement over the next 5 years across Ghana and West Africa. Fourche Maline will be responsible for acquiring utility vehicles, converting the vehicles to ruggedised Electric Utility Vehicles using Tembo conversion kits, selling the units to end customers, and providing after-sale servicing and maintenance with support from Tembo. Sectors, where the Tembo EUV will be used, are wide-ranging, including mining but also power, oil & gas, government services, insurance, and agriculture.

Ghana is one of the largest mining countries in the world and the number one gold mining country in Africa. The Hilux and LandCruiser are widely used in the local mining industry and several international mining companies with a local presence have declared global sustainability goals. Ghana has also been a proponent of Electric Vehicle adoption with the Ghana Energy Commission launching a “Drive Electric Initiative” (DEI-Gh) to foster the development of the EV market and infrastructure.

The Tembo EUV kits will transform new and second-hand diesel-powered 4×4 LandCruiser and Hilux vehicles into ruggedised EUVs. Tembo EUV conversion kits are a key component of VivoPower’s turnkey sustainable energy solutions, designed to help corporate customers accelerate towards their net zero carbon goals and to achieve cost savings.

Kevin Chin, VivoPower’s Executive Chairman and Chief Executive Officer, said:

“We are very pleased to contribute towards the acceleration of Ghana achieving its net-zero goals with our Tembo EUV23 kits. Given the large mining sector in Ghana and surrounding West African nations, there is widespread use of the Hilux and LandCruiser models for mining as well as other sectors. Accordingly, there is a sizeable opportunity for electrification of utility vehicle fleets. We look forward to working closely with the Fourche Maline team to deliver not just Tembo EUV kits but also our broader sustainable energy solutions to Ghana, assisting the Ghanaian government as well as large industrial sector companies achieve their energy transition goals over the next five years in and beyond.”

Matilda Agyemang Sarfo, Fourche Maline’s Board Director, said:

“We are thrilled about the collaboration with VivoPower to implement electric mobility solutions specifically designed for aggressive and rugged terrains in Ghana and West Africa. This partnership represents a significant milestone as Ghana is the largest gold producer in Africa, and its mining sector is dedicated to a shift towards sustainable transportation. We have already initiated discussions with some key local mining players who are keen to test Tembo’s electrification solution.”

To read the full press release, and to keep up with all of VivoPower’s releases, visit the Press Releases page.

About Fourche Maline Ltd

Fourche Maline is a fully indigenous Ghanaian engineering and technical services company dedicated to the optimal performance of a wide range of industrial and commercial services for clients in the Oil and gas, Mining, Food and Beverage, and Diplomatic missions.

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Shareholder Enquiries

[email protected]