May 23, 2024

Sanden Corporation

Launch of Next Generation Electric Compressor Production Line- Further strengthening of the four-pole electric compressor
production system Sanden Manufacturing Europe S.A.S. (SME), Sanden Corporation's overseas
base in France, will build a new production line for next-generation electriccompressors in the European area, our main market, in response to theaccelerated electrification of the automotive industry.
Based on our basic policy of “manufacturing and delivering products close to
our customers,” we have established a four-pole production system for electriccompressors in Japan, China, Europe, and North America, and now we will
increase the production capacity of electric compressors in the European area.
Currently, we maintains an annual production capacity of 400,000 electriccompressors in the European area, and with this expansion, it will be able toproduce 1.15 million units by the fall of 2025. Furthermore, thenext-generation compressors manufactured on the state-of-the-art production
line will be based on a platform design and will be able to meet a wide range ofneeds, from high to low voltage, from large capacity to compact size.
In addition, SME has received a grant of approximately 2 billion yen (overfour years) from the French government for the construction of the new electriccompressor production line. The French government's policy “FRANCE2030*”
aims to produce 2 million electric and hybrid vehicles in France by 2030, andwe have decided to receive support for the installation of a new production linein France, as the performance of our next-generation electric compressors has
been highly evaluated for its environmental friendliness. The company'snext-generation electric compressors have been highly evaluated for theirenvironmental friendliness, and the company has decided to receive support
for the installation of a new production line in France.

Sanden Manufacturing Europe S.A.S. (SME)First company in Brittany to be certified
under the “FRANCE2030” subsidy program

Electric compressor

As indicated in our medium-term management plan “SHIFT2028” announced
in February 2024, we have focused on the new energy vehicle market, and inorder to provide competitive and flexible integrated thermal management
system solutions that are always close to our customers based on the productstrength of electric compressors, we are working on global production We arepromoting the optimization of our layout.

We will accelerate our growth by implementing our corporate culture of“Challenge and Innovation” and promoting the development of new products
and technologies to achieve our mid-term management plan, SHIFT2028, andto realize our vision of becoming a global leader in automotive compressors
and integrated thermal management systems.

*FRANCE2030
This is a major support (investment) to strengthen production in France and promote
the environmental and energy transition, with the aim of accelerating decarbonizationand ensuring industrial and technological autonomy.

＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊
Inquiry about this
Sanden corporation
Administration Division
Global administration Section (PR)sdhd.prcsr.jp@g-sanden.com＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊