LION E-Mobility — Investor Presentation 2022

Dec 14, 2022

Earnings call, 16.12.2022

Q3/2022

People on the call

Alessio Basteri Chairman of the Board of Directors, LION E-Mobility AG

Ian Mukherjee Member of the Board of Directors, LION E-Mobility AG

Winfried Buss Managing Director, LION Smart GmbH

• 1. Q3/2022 Result (non Audited)
• 1. Update Lion Smart Production
• 1. Update Light Battery

Q3/ 2022 Results - Overview

Non Audited

Preliminary figures *	Q3 2022	Q3 2021		Q1-Q3 2022 Q1-Q3 2021	Variance YoY
in M EUR			cumulative	cumulative	cumulative
Sales	22.4	9.7	46.6	18.8	+27.9
Operational revenue	22.2	9.7	46.5	18.9	+27.5
EBITDA	0 4	-0.3	1.4	-1.2	+2.5
Quarterly earnings	0.4	-0.4	1.3	-1.4 '	+27

• 1. Strong Sales in Q3/ 2022 with over EUR 22.4 M
• 1. Integration business with Sale of Battery packs is the main driver for the increase in revenue
• 1. In Q3 /2022 Lion Smart could again achieve a positive EBITDA as well as quarterly result

Q3/ 2022 Result

Sales and Income - Non Audited

EUR	01.01.2022 - 30.09.2022	01.01.2021- 30.09.2021
Sales	46.630.550	18.752.620
Decrease/ Increase in inventories of finished goods and work in progress	(104.413)	174.180

Total output	46.526.137	18.926.800
Other operating income	161.543	292.374
Cost of materials	(40.910.160)	(16.761.994)
a.) cost of raw material	(40.437.466)	(16.533.816)
b.) Cost of purchased service	(472.694)	(228.179)
Gross profit	5.615.977	2.164.806

• 1. YTD Q3/22 Sales higher com pared to 2021
  2. Sales up from EUR 18.8 M in 2021 to EUR 46.6 M in 2022
  3. Result in line with EUR 50-55 M full year guidance given in last announcement
• 1. Material Rate down from 89% (2021) to 88% current year
• 1. Gross Profit of EUR 5.6 M in 2022 compared to EUR 2.2 M same period in 2021

Q3/ 2022 Result

People Cost and D&A- Non Audited

Earnings before Interest and Taxes (EBIT)	1.253.276	(1.434.426)
Other operating expense	(1.750.429)	(1.577.028)
Depreciation and amortization on intangible fixed assets and tangible fixed assets	(101.775)	(249.567)
Personnel expenses	(2.672.039)	(2.065.011)
Gross profit	5.615.977	2.164.806
EUR	30.09.2022	30.09.2021
	01.01.2022 -	01.01.2021-

• 1. Personal Expense up from EUR 2.1 M in 2021 to EUR 2.7 M
  2. Higher Headcount due to investment in Light Battery
• 1. Depreciation slightly lower compared to previous year
• 1. Operating Expense in 2022 slightly higher compared to previous year, mainly due to consulting work
• 1. EBIT in 2022 positive by EUR 1.3 M compared to EUR 1.4 M loss in 2021

Q3/ 2022 Result

EBIT and EBT - Non Audited

Earnings after tax	1.261.621	(1.413.728)
Other tax	(648)	(684)
Taxes on income
Earnings before taxes	1.262.269	(1.413.045)
Financial result	8.993	21.381
Interest and similar expensees	(32.342)	(21.352)
Other interest and similar income	41.335	42.733
Earnings before Interest and Taxes (EBIT)	1.253.276	(1.434.426)
EUR	30.09.2022	30.09.2021
	01.01.2022 -	01.01.2021-

• 1. 2022 Financial result slightly lower compared to 2021, mainly due to higher interest paid
• 1. Despite positive EBIT in 2022, no relevant tax payment is assumed due to loss carried forward
• 1. Overall result YTD 2022 is EUR 1.3 M compared to - EUR 1.4 M same period in 2021

Balance Sheet and Cash Flow Q3/ 2022

Activa - Non audited

EUR	30.09.2022	31.12.2021
ASSETS
Fixed A. Assets	7.547.724	7.434.350
Intangible I Assets	2.480.568	2.488.073
Tangible II Assets	476.597	355.718
Financial III Assets	4.590.560	4.590.560
B. Current Assets	32.808.983	5.966.175
Inventories I	11.640.039	508.088
Receivables and other II assets	19.353.488	4.332.357
Bank balances, cash cash equivalents III and	1.815.456	1.125.730
C. Prepaid expenses	262.417	79.840
Total assets	40.619.124	13.480.366

• 1. Overall Increase of total assets from EUR 13.5 M end of 2021 to EUR 40.6 M in Q3/2022
  2. Fixed assets remain nearly unchanged
  3. Current assets up mainly due to higher inventory and receivables
  4. Bank Cash up to EUR 1.8 M in 2022 due to positive cash Flow

Balance Sheet and Cash Flow Q3/ 2022

Passiva - Non audited

EUR	30.09.2022	31.12.2021
EQUITY AND LIABILITY
A. Equity	7.398.406	5.586.785
Subscribed capital I	129.500	129.500
Capital II reserve	10.316.550	9.766.550
Accumulated losses brought forward III	(4.309.265)	(3.305.289)
Result for the period IV	1.261.621	1.003.976 -
Accruals B.	389.911	432.037
Liabilities C.	32.830.806	7.461.543
Total and liabilities equity	40.619.124	13.480.366

• 1. Equity up to EUR 7.4 M compared to EUR 5.6 M in 2021
  2. Capital reserve up by EUR 0.6 M from EUR 9.8 M to EUR 10.3 M due to capital injection in Q1/2022 (Q2/2022 and Q3/2022 no financing was needed)
  3. Accruals remain nearly unchanged
  4. Liabilities increased from EUR 7.5 M to EUR 32.8 M mainly due to higher inventory

Cash Flow Q3/2022

Non audited

	01.01. -	01.01.-
EUR	30.09.2022	30.09.2021
Cash flow from operating activities	537.446	(846.938)
Cash flow from investing activities	(397.720)	(123.856)
Cash flow from financing activities	550.000,00	500.000,00
change in cash and cash equivalents Net	689.726	(470.794)

• 1. Overall Cash Flow from operations positive by EUR 0.5 M in 2022 compared to EUR -0.8 M in 2021
• 1. Cash Flow from investments slightly higher compared to 2021
• 1. Cash Flow from Financing nearly unchanged no Financing done in Q2/22 and Q3/22
• => Net Change in Cash and Equivalents up from EUR -0.5 M in 2021 to EUR 0.7 M in 2022

Q3/ 2022 Key Messages

• 1. Overall Business Model of Lion Smart is working, company continues on it's growth path
  2. Revenue for Q3/2022 is in line with full year expectation
  3. Previous given guidance of EUR 50 55 M for full year can be reconfirmed
  4. Overall Lion Smart expects a positive full year 2022 EBIT
• 1. As I3 production has been ended in Q3/2022, Q4/2022 Sales will come from Lion Smart Stock. Q1/2023 will be mix from Stock deliveries and own production.
• 1. Hildburghausen Plant on Track
• 1. Light Battery project on Track

• 1. Q3/2022 Result (non Audited)
• 2. Update Lion Smart Production
• 1. Update Light Battery

Update Lion Smart Production

Plant Hildburghausen

View on the Battery Pack assembly line

View on the Water retention basin

View on the Module production line

• 1. Q3/2022 Result (non Audited)
• 1. Update Lion Smart Production
• 3. Update Light Battery

Status Light Battery

Customer prototype Project

• 1. Sub components will be delivered till end of Dec. 2022
• 1. Prototype Assembly at Lion Smart starts in January 2023
• 1. Lion Smart Testing will be done in Feb. 2023
• 1. Hand-over to OEM planned end of March 2023
• 1. Vehicle Test at OEM in Q2/2023

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.