LION E-Mobility

Earnings Release • Mar 22, 2024

CORPORATE FINANCE FINANCIAL RESTRUCTURING Preliminary Group results FY 2023

ADVISORY

HL.com

FINANCIAL AND VALUATION March 2024

FINANCIAL HIGHLIGHTS Q4 2023

PROFIT AND LOSS FY 2023

EURm

Income Statement	FY 2022	FY 2023
Revenues	53.8	56.1
Increase in contract assets portfolio	-0.3	0.0
Other own work capitalised	0.8	0.4
Total Revenues	54.2	56.5
Other operating income	0.3	1.5
Cost of materials	-46.7	-48.3
Personnel expenses	-3.9	-5.7
Other operating expenses	-4.2	-4.8
EBITDA	-0.2	-0.7
EBITDA margin %	0.3%	-1.2%
Depreciation and amortization	-0.4	-0.9
EBIT	-0.6	-1.6
EBIT margin %	-1.1%	-2.8%
Finance income	0.1	0.1
Finance expenses	-0.1	-1.5
Share of profits of associated subsidiaries	0.0	0.0
EBT	-0.7	-2.9

• 56M Revenues in 2023 went up 4% compared to 2022 in the first year of production
• Accrued R&D subsidies from former fiscal years added to the other operating income of €1.5m.
• New production site in Hildburghausen was staffed, hence increased personal costs from 7% to 10% including interim positions.
• Other operating expenses increased slightly by €0.6m reflecting the ramp up of production.
• Depreciation especially for the production investments more than doubled in 2023.
• Increased finance expenses of €1.4m are reflecting the increased debt level in loans from RBI in 06/23 and shareholder in 12/22.

CASHFLOW FY 2023

EURm

Cash Flow Statement	FY 2022	FY 2023
Cash and cash equivalents at beginning of period	1.2	3.0
Cash flow from operating activities	-6,8	2.1
Cash flow from investing activities	-2.7	-10.2
Cash flow from financing activities	11.4	9.5
Net change in cash and cash equivalents	1.8	1.4
FX effect	0.0	0.0
Cash and cash equivalents at end of period	3.0	4.4

• In 2023 financing activities mainly went into the investing of the production in Hildburghausen.
• With the start of production in May, LION could generate positive €2.1m CF from operations.
• In the last two years funding of €20.9m resulted in a new working production site and also on further developing our own technologies, LIGHT Battery and BMS, while already generating positive free operating cash flow in our first 8 months of initial own production.

BALANCE SHEET YE 2023

EURm

Balance Sheet	YE 2022	YE 2023
Total Assets	29.8	68.1
A. Non-current assets	13.6	23.5
B. Current assets	16.2	44.6
Equity and liabilities	29.8	68,1
A. Equity	14.4	12.3
B. Non-current liabilities	8.1	16.6
C. Current liabilities	7.3	39.2

• Non-current assets increased by 9.9m mainly due to the production site in Hildburghausen, a large production licence and further capitalized development costs for LIGHT Battery and Battery Management Systems at LION Smart.

• Current assets increase of 28.3m due to higher sales in Q4 and inventory stocking.
• Non-current liabilities increased mainly by RBI loan.

REVENUE DEVELOPMENT AND GUIDANCE 2024 (EURm)

• Next to the announced order from Karsan of up to €12m, LION has secured additional orders of a smaller magnitude and is entertaining further negotiations with existing and new customers
• LION expects a positive EBITDA of €0.5-1m for FY 2024

* no sales from Gen 2 packs included in our guidance

GLOBAL SALES APPROACH

Sales split by segment

2023

Mobility: 59% Storage: 41% Others: 1%

Target 2024

Mobility: ~55% Storage: ~45%

Sales split by region

2023 Europe 85% NA: 15%

Target 2024 Europe 70% NA: 30%

Extending sales force

• Focus on Enlarging our customer base with medium-sized and large customers
• Enlarging customer base started successfully
  • Ramping up one customer in H1-2024
  • 3 frame contracts in place for 2024

  • 20 design-in activities running

• Europe: 50/50% mobility / storage
• US CA: 80/20% mobility / storage
• Dedicated Sales Strategies for Mobility and Energy Storage Solutions end-markets
• Immersion Cooled Batteries on test stand of OEM, aligned with OEM to have minimum 2 test cars on the road by Q3
• Market interest in immersion increasing
• Attending 30 expos and conferences in 2024 (e.g. SmarterE and Battery Show in US) – 7x more than 2023

NEW ORDER FROM BUS MANUFACTURER KARSAN

• Purchase order in total over 12 million €
• Solidifies LION's position as a key player in the global electrification of public transit
• Around 6 million € in firm orders to be delivered in 2024
• Floating component of around 6 million € expected to be delivered in 2024.

SVolt partnership bolsters our development plan

Development process – OEM Battery

Step	Status
1. PoC in an OEM vehicle – 400V/800V battery	Currently battery packs operational. Tests on OEM test bench ongoing (520kW per pack).
packs	Additional components ordered to build up (mildly) improved design in June 2024.
2. Concept design	Concept work with engineering team almost completed. Competitive design targeted (laser welded housing, module level specs of OEM). Presentation of concept design results @ OEM next month.
3. Product development	SOP for vehicle moved to 2028. Quote for A-Sample phase (until Q4/2024) in preparation from engineering team.

Development process – internal BMS for immersion OEM project

• Batteries are on test bench
• Inside Light Battery the internal BMS are used
• Hardware and Software was made for prototypes
• Full control and responsibility over software enables us to do quick adaptions
• No certification or usage in series project at current stage

Cell to Pack – LFP for Storage

116s LFP 40,5kWh nominal 371V nominal

Sample Built in Planning

INVESTMENT HIGHLIGHTS LION

Cutting-edge battery technology

Our battery pack technology adheres to the highest safety, quality, and reliability standards in the automotive EV industry.

Diversified product portfolio

We cater to the rapidly expanding energy storage, as well as the leisure and commercial electric vehicles sectors.

Clear strategic focus

Our strategy focuses on the production of small to medium-sized batches. This is made possible by a flexible and modular battery pack design that is characterized by high entry barriers.

Reliable supply chain

We have secured a stable supply of top-tier battery cells through a strategic partnership with SVOLT, a leading global cell supplier.

Efficient manufacturing setup

Our cost-efficient and OEM-tested manufacturing setup boasts a high degree of automation. With the capacity to produce 45,000 battery packs annually, we are well-positioned for scalability.

Commitment to sustainability

At the core of our business model lies a dedication to sustainability and actively contributing to the clean energy transition.

Attractive financial profile

We have an attractive financial profile with low investment requirements and double-digit growth rates.

Disclaimer

THE MATERIALS SET FORTH IN THIS PRESENTATION DO NOT CONSTITUTE EITHER AN OFFER TO SELL SECURITIES OR THE SOLICITATION OF OFFERS TO BUY SECURITIES. ANY SUCH OFFER OR SOLICITATION WILL ONLY BE MADE PURSUANT TO A SUBSCRIPTION AGREEMENT, A FINAL PRIVATE PLACEMENT MEMORANDUM, OR ANOTHER OFFICIAL DOCUMENT DELIVERED IN ACCORDANCE WITH REGULATION D PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR OTHER APPLICABLE SECURITIES LAWS.

WE HAVE NOT PROVIDED FINANCIAL INFORMATION FOR LION E-MOBILITY GROUP HEREIN. HISTORICAL FINANCIAL INFORMATION WAS PREPARED IN ACCORDANCE WITH GERMAN GENERALLY ACCEPTABLE ACCOUNTING PRINCIPLES. INVESTORS SHOULD CONSULT WITH THEIR OWN FINANCIAL ADVISORS TO UNDERSTAND THE BASIS ON WHICH THE INCLUDED FINANCIAL STATEMENTS HAVE BEEN PREPARED.

THIS PRESENTATION ALSO 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. SUCH STATEMENTS INVOLVE RISKS, UNCERTAINTIES, AND ASSUMPTIONS, AND UNDUE RELIANCE SHOULD NOT BE PLACED ON SUCH STATEMENTS. FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF PERFORMANCE, AND NO REPRESENTATION OR WARRANTY OF ANY KIND IS GIVEN WITH RESPECT TO THE ACCURACY OF 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. SUCH FORWARD-LOOKING STATEMENTS HAVE BEEN PREPARED BASED UPON INFORMATION AVAILABLE AT THE TIME MADE. FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE THEY ARE MADE, AND 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. ALL PROJECTIONS CONTAINED HEREIN HAVE BEEN PREPARED BY THE MANAGEMENT OF THE COMPANY AND HAVE NOT BEEN REVIEWED OR COMPILED BY INDEPENDENT PUBLIC ACCOUNTANTS OR FINANCIAL ADVISORS.

MARKET DATA INCLUDED HEREIN WAS OBTAINED FROM VARIOUS CONSULTANTS' REPORTS, TRADE PUBLICATIONS, INDUSTRY SOURCES AND COMPANY ESTIMATES. SUCH SOURCES AND ESTIMATES ARE INHERENTLY IMPRECISE. ACCORDINGLY, THE ACCURACY AND COMPLETENESS OF SUCH INFORMATION IS NOT GUARANTEED. ALTHOUGH THE COMPANY BELIEVES SUCH INFORMATION TO BE RELIABLE, IT HAS NOT INDEPENDENTLY VERIFIED SUCH MARKET DATA.