LION E-Mobility — Call Transcript 2022

May 4, 2022

Earnings call, 06.05.2022

Q1/2022

© LION SMART GmbH | 2022 | ID-473 Company Presentation Page 1

Earnings call

Panellists

Winfried Buss

o General Manager of LION Smart GmbH

Frank Schönrock

o Investor Relations

• 1. Q1/2022 Result (non Audited)
• 1. Status update BMW licence

Q1 /2022 Results - Overview

Non Audited

Preliminary figures in EUR million	Q1 2022	Q1 2021
Sales	13.201	2.609
Total output	13.093	2.709
EBITDA	$-0.028$	$-0.208$
Quarterly result	$-0.066$	$-0.275$	Ć

• 1. Strong Sales in Q1/ 2022 with over 13 Mio€, despite global supply chain challenges
• 1. Integration business is main driver for the increase in revenue
• 1. In Q4/2021 Lion Smart could achieve a slight negative EBITDA as well as quarterly result

Sales and Income - Non Audited

EUR	01.01. 31.03.2022	$01.01.-$ 31.03.2021
Sales	13.200.596	2.609.127
Decrease/Increase in inventories of finished goods and work in progress	$-107.149$	99.777
Own work capitalized	$\mathbf 0$	$\theta$
Total output	13.093.447	2.708.904
Other operating income	68.776	4.940
Cost of materials	11.839.085	1.986.395
Gross profit	1.254.362	722.509

• 1. Q1 Sales significantly up compared to previous year
• Supply chain issues lead to volatile delivery situation and is expected to continue throughout 2022
• Quarterly result in line with full year guidance 50-60 Mio€ given in last call
• 1. Cost of Material up due to higher revenue and change in Product Mix with higher share of integration Business
• 1. Gross Profit of 1,254 Mio€

People Cost and D&A- Non Audited

	01.01.	$01.01 -$
EUR	31.03.2022	31.03.2021
Gross profit	1.254.362	722.509
Personnel expenses	868.042	618.662
Depreciation and amortization on intangible fixed assets
and tangible fixed assets	30.607	75.010
Other operating expense	483.159	316,575
Earnings before Interest and Taxes (EBIT)	$-58.670$	$-282.797$

• 1. Personal Expense up from 0,618 Mio. € to 0,868 Mio. €
• Increase of workforce from average 39 People (32 Fulltime/ 7 Working Students) people in Q1/2021 to average 50 People (44 Fulltime/ 6 Working Students) in Q1/2022
• Change in employment structure resulting in more FTE, less working students
• Additional people are hired to improve Maturity of Light Battery and BMS
• 1. Operating Expense higher compared to previous year, mainly due to increased insurance cost caused by higher revenue

EBIT and EBT - Non Audited

	$01.01 -$	$01.01 -$
EUR	31.03.2022	31.03.2021
Earnings before Interest and Taxes (EBIT)	$-58.670$	$-282.797$
Other interest and similar income	12.675	15.093
Interest and similar expensees	20.168	7.437
Financial result	$-7.493$	7.656
Earnings before tax	$-66.164$	$-275.141$
Taxes on income	$\bf{0}$	$\overline{0}$
Earnings after tax	$-66.164$	$-275.141$

• 1. In Q1/2022 Lion Smart received Interest of 0.012 Mio. € while pay-out of interest to lenders was 0,02 Mio. €
• 1. Loans of in total 0,273 Mio. € have been paid back in Q1/2022

Activa - Non audited

EUR	31.03.2022	31.12.2021
ASSETS
Fixed Assets	7.421.024	7.434.350
Intangible Assets	2.491.693	2.488.073
Tangible Assets	338,771	355.718
Financial Assets	4.590.560	4.590.560
Current Assets	12.347.146	5.966.175
Inventories	2.136.228	508.088
Receivables and other assets	8.076.108	4.332.357
Bank balances, cash and cash equivalents	2.134.809	1.125.730
Prepaid expenses	238.152	79.840
Total assets	20.006.322	13.480.366

• 1. Overall Increase to 20,006 Mio. €
• Fixed assets remain nearly unchanged
• Current Assets up mainly due to higher revenue and more cash

Passiva - Non audited

EUR	31.03.2022	31.12.2021
EQUITY AND LIABILITY
Equity	6.070.622	5.586.785
Subscribed capital	129,500	129.500
Capital reserve	10.316.550	9.766.550
Accumulated loses brought forward	$-4.309.265$	$-3.305.289$
Result for the period/Net loss for the year	$-66.164$	$-1.003.976$
Accruals	348.286	432.037
Liabilities	13.587.414	7.461.543
Total equity and liabilities	20.006.322	13.480.366

• 1. Overall Increase from 13,480 Mio. € to 20,006 Mio. €
• Capital reserve increased by 0,550 Mio. € to 10.316 Mio. € due to injection of equity by Lion Mobility AG
• Liabilities increased to 13,587 Mio. € mainly due to higher revenue

Cash flow - Non audited

$01.01 -$	$01.01 -$
31.03.2022	31.12.2021
$-66.164$	$-1.003.976$
749.559	386,724
$-290.480$	$-485.660$
550,000	710,000
1.009.079	611.064
1.125.730	514.667
2.134.809	1.125.730

• 1. Overall Cash Flow positive by 1,009 Mio. € in Q1/2022
• Cash flow from Operating Activities up from 0,386 Mio. € to 0,749 Mio€
• Cash Flow from investments of -0,290 Mio. € mainly due to repayment of loans
• Cash flow from financing activities down from 0,710 Mio. € to 0,550 Mio. € mainly due to Lower equity raise
• Þ Overall cash flow positive 1,009 Mio. €
• Þ Q2/2022 Cash and cash equivalent up to 2,134 Mio. €

Q1/ 2022 Key Messages

• 1. Overall Business Model of Lion Smart is working, Company is growing fast
• Revenue for Q1/2022 is in line with full year Expectation
• Previous given guidance of 50-60 Mio. € for full year can be reconfirmed
• 1. Higher sales lead to higher gross profit
• LION Smart is investing additional money in people to
  • Improve Maturity of "Light Battery" and "Battery Management System", by adding additional resources
  • Significant challenges starting Q2 due to increased Raw material prices
• 1. Revenue for 2021 is expected to be not qualified

• Lion Smart GmbH has passed HGB Audit for 2021 financials

• 1. Q1/2022 Result (non Audited)
• 1. Status update BMW licence

Status Update BMW Licence

Update to March 2022

• o Regular communication with BMW continues
• o Final Decision to be expected in May 2022
• o Pre-signing activities continue as described in previous calls where it makes sense
• o Management stays positive to close deal

DISCLAIMER

This presentation contains forward-looking statements that involve a number of risks and uncertainties, including statements that relate to, among other things, the Company's objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to currency rates and creditworthiness of customers); Company liquidity and capital resources, including the availability of additional capital resources to fund its activities; level of competition; changes in laws and regulations; legal and regulatory proceedings; the ability to adapt products and services to the changing market; the ability to attract and retain key executives; and the ability to execute strategic plans. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise, except as required by law.

© LION SMART GmbH | 2022 | ID-473 Company Presentation Page 14