Terra Drone Establishes 'Terra Defense Europe' in Estonia to Expand European Defense Drone Business

Tokyo, June 15, 2026 — Terra Drone Corporation, a Japan-based leading provider of drone and Urban Air Mobility (UAM) solutions, has announced the incorporation of a new subsidiary, Terra Defense Europe, in the Republic of Estonia. The new company will serve as the operational hub for Terra Drone's defense business across Europe.

Terra Defense Europe will be responsible for the sales, maintenance, logistics management, and local partner coordination of defense-use drones and related systems. Terra Drone positions the new subsidiary as the central node for its European defense operations, through which it will advance business development, supply chain establishment, and maintenance and operational support capabilities for defense drone assets in Europe — including the interceptor drones Terra A1, Terra A2, and Terra C1, currently under joint development with Ukrainian partner companies.

Background

Since announcing its entry into the defense equipment market in March 2026, Terra Drone has steadily expanded its product portfolio, with the Terra A1 rotary-wing interceptor drone and the Terra A2 fixed-wing interceptor drone as core offerings in the counter-drone defense segment.

European nations are currently accelerating efforts to strengthen defense capabilities and expand regional defense industrial bases in response to the evolving security environment. Under the EU framework, the SAFE initiative has established a financing mechanism of up to €150 billion to support joint procurement and bolster defense industrial capacity, while the EDIP initiative is advancing in parallel to expand production capacity and ensure stable supply in the defense sector. Under these frameworks, collaboration with European industrial partners and local stakeholders is increasingly critical.

At the same time, establishing an operational structure that complies with each country's regulatory framework and security requirements is essential for the international promotion of defense drones and related systems. Cross-border transfers of advanced defense equipment require export control reviews and coordination procedures in multiple jurisdictions, often taking considerable time before actual deployment. Against this backdrop, Terra Drone determined that, in addition to direct supply from Japan, it was necessary to establish a business base in Europe — close to where demand arises — to build an integrated system capable of handling business development, supply, maintenance and operational support, and logistics management.

The Republic of Estonia offers superior conditions for European defense and technology cooperation in terms of geographic location and strategic positioning, making it Terra Drone's choice as a key base for its European defense operations and a launchpad for advancing defense business development across Europe and beyond.

Strategic Significance of Terra Defense Europe

1. Building a Platform to Participate in European Defense Programs and Joint Procurement

European nations are actively pursuing initiatives to strengthen defense capabilities, promote joint procurement, and foster regional defense industrial bases. In this environment, having a locally rooted operational structure and close collaboration with regional companies and relevant institutions is increasingly critical for capturing future business opportunities.

Terra Defense Europe will serve as Terra Drone's base for business development, local partner collaboration, and customer support in the European defense market, thereby enhancing its ability to participate in European defense-related programs and joint procurement opportunities, and using Europe as a strategic starting point to create new business in the defense sector.

2. Strengthening the Revenue Base Through After-Sales Maintenance and Operational Support

In the defense drone systems sector, ongoing customer support capability is essential — encompassing not only product supply but also post-deployment maintenance, operational support, and logistics management. The establishment of Terra Defense Europe will help Terra Drone build a more robust after-sales service framework and lay the foundation for a stable long-term revenue base.

3. Extending Business Collaboration with Ukrainian Partners Across Europe

Terra Drone is building a business foundation in defense drone systems through collaboration with Ukrainian defense technology companies. Terra Defense Europe will serve as the hub for extending these partnerships across Europe, combining the R&D capabilities and business foundations that Ukrainian partners have developed on the ground with Terra Drone's global network to drive the growth of defense business originating from Europe.

New Company Overview

Outlook

With the establishment of Terra Defense Europe, Terra Drone will strengthen its operational framework for advancing defense business in Europe and build a robust supply, maintenance, and logistics system for defense-use drones and related systems.

As Europe accelerates efforts to strengthen defense capabilities and expand the regional defense industrial base, Terra Drone believes that establishing a locally rooted business presence is of critical importance for future defense business development. Terra Drone will use Europe as a strategic base to deliver defense drone assets that meet regional security needs, contributing to the protection of human lives and critical infrastructure.

Going forward, Terra Drone will continue to leverage its accumulated expertise in drone development and operations, UTM (Unmanned Traffic Management), and global business expansion to create new opportunities in the defense sector and enhance overall corporate value over the medium to long term.

Impact on Financial Results

At this time, Terra Drone believes this development will contribute to enhancing medium- to long-term corporate value; however, the impact on Terra Drone's consolidated financial results for the fiscal year ending January 2027 is expected to be minimal. Any matters requiring disclosure in the future will be announced promptly.

Defense Business Contact Information

• Business Website: https://terra-defense.com/
• Contact Form: https://terra-defense.com/contact/
• Terra Drone Corporation Defense Division — Morita
• Email: defense@terra-drone.co.jp
• Phone: 080-4329-7881

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About Terra Drone Corporation

Terra Drone Corporation, headquartered in Japan, is a globally leading provider of drone and Advanced Air Mobility (AAM) solutions. Operating under the mission of "Unlock 'X' Dimensions," the company is committed to driving innovation and solving challenges through cross-domain integration. Its core business spans surveying, inspection, agriculture, and UTM, serving industries including oil and gas, construction, chemicals, energy, and agriculture.

Terra Drone has completed more than 3,000 projects globally, achieving significant milestones in drone operations. In July 2023, the company acquired a majority stake in Unifly, a world-leading UTM platform provider deployed in more than eight countries; in February 2024, it further invested in U.S.-based Aloft Technologies to continue expanding its UTM capabilities. Terra Drone was listed on the Tokyo Stock Exchange Growth Market on November 29, 2024 (ticker: 278A), was ranked the #1 global drone service provider in 2024, and has been recognized by Drone Industry Insights as one of the top three industrial drone service providers globally for five consecutive years.

For more information, visit the official website: http://www.terra-drone.net

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