Supply contract terminated

What happened

Supply contract terminated

1. Classification of Sales/Supply Contract Termination: Goods supply - Terminated Contract Name: Development and supply of EMA and tilting and blade pitch system for the VX4 airframe

2. Termination Details Termination Amount (KRW): 454,828,405,776 Recent Sales (KRW): 6,415,087,932,347 Ratio to Sales (%): 7.09 Whether a Large Corporation: Applicable

3. Counterparty: Vertical Aerospace Group Ltd. - Relationship with the Company: -

4. Contract Period Start Date: 2022-08-23 End Date: 2026-07-31

5. Main Reason for Termination: Early termination of the business following execution of a termination agreement with the counterparty

6. Termination Date: 2026-07-31

7. Matters Concerning Disclosure Deferral Reason for Deferral: - Deferral Deadline: -

8. Other important matters for investment judgment - This disclosure concerns the termination of the sales/supply contract previously disclosed on August 23, 2022 and October 18, 2023. - Both parties faithfully performed their contractual obligations after execution, but as market conditions and the direction of the project changed from the original business purpose, the parties agreed, as a strategic decision, to terminate the contract. However, concurrently with this termination agreement, the parties also signed an MOU to maintain future cooperation, laying the groundwork for cooperation on similar development projects and mass-production supply projects. - The "Termination Amount" in "2. Termination Details" above is converted into Korean won using the Seoul Money Brokerage Services Limited matching rate (KRW 1,326.70/USD) as of August 22, 2022, the day before the original contract execution date. - The "Recent Sales" in "2. Termination Details" above is Hanwha Aerospace's consolidated sales for 2021. - The "Termination Date" in "6." above is the date the termination agreement was executed by both parties.

Related disclosure 2022-07-21: Other management matter (voluntary disclosure) 2022-08-23: Sales/supply contract executed 2023-06-20: Material management matter related to investment judgment 2023-10-18: Sales/supply contract executed