LION E-Mobility — Investor Presentation 2023

Dec 13, 2023

CORPORATE FINANCE FINANCIAL RESTRUCTURING FINANCIAL AND VALUATION CORPORATE PRESENTATION & 9M 2023 RESULTS

ADVISORY

HL.com

December 2023

OUR MISSION

At LION, we believe in a sustainable future . Through our commitment to battery pack development and research, we want to make the World a cleaner, more sustainable and energy efficient place . We are convinced that progress and sustainability can co -exist when we work together towards a cleaner Planet .

OUR VALUES

Sustainability is the driving force behind our corporate culture . Sustainability is at the heart of our research and development activities and defines the way we interact with each other . The goal of all our activities is to create added value in a responsible manner . Sometimes it's a long road to get there, and it's difficult to live up to this commitment . But in the end, everyone will benefit – our employees, our customers, our suppliers and our Planet .

Alessio Basteri , Chairman

LION E-Mobility at a Glance

€53.8m	~€114bn	60+
Sales in 2022A	Global TAM in 2030E	FTE in 2022
72.4%	34.2%	1 / 3
Sales CAGR 20-22A	TAM CAGR (20A-30E)	Production sites / office locations
May 2023	5x	2GWh
Production start in Hildburghausen	no. of customers in last 24 months	Production capacity

We assemble and produce battery modules and packs

into modules, and

plant in Germany

▪ Battery cells are packaged

connected with a battery management system (BMS)

▪ We operate our own stateof-the art module assembly lines at our manufacturing

• Multiple standardized modules form a battery pack, built to our customers needs
• Our battery packs are extensively tested, before delivery to our clients

1. CELL SELECTION 2. MODULE ASSEMBLY 3. PACK ASSEMBLY 4. RESEARCH & DEVELOPMENT

• Part of our R&D is focused on immersion cooling technology for high performance applications such as sport cars
• We also have internal BMS capabilities
• We select battery cells based on the client-specific use case, with focus on energy storage and mobility
• We source our cells from Samsung SDI and SVOLT
• Our new generation battery packs will be equipped with NMC for mobility and LFP technology for storage

Our current battery packs are used in a broad range of applications

We are flexible and demonstrated exceptional adaptability across multiple applications

Broad Customer Base including Tier 1 OEMs

Our Management Team

ALESSIO BASTERI President of the Board of Directors

IAN MUKHERJEE

Board of Directors

TOBIAS MAYER

Co-Founder

15+ years of experience

Board of Directors

DR. ULRICH EICHHORN

Senior Advisor Chairman of Global Technical Advisory Committee

30+ years of experience

JÖRG PETER HAHN Chief Financial Officer

30+ years of experience

MICHAEL GEPPERT

Chief Technology Officer Co-Founder

15+ years of experience

ANDREAS VOGT

Head of Production

20+ years of experience

FELIX KAEHLERT

Head of Purchasing

13+ years of experience

MICHAEL REICH Global Head of Sales

25+ years of experience

60+ INNOVATION DRIVEN EMPLOYEES WITH STRONG BACKGROUNDS

15 years.

Founding of LION and start of our own battery lab operation

Public listing: We have successfully listed Lion E-Mobility

Our evolution from battery and testing consultancy to dedicated fully automated battery pack manufacturer

Our battery pack technology fulfils highest automotive EV standards of safety, quality and reliability

Serving the fast-growing energy storage and leisure and commercial electric vehicles sectors

Strategic focus on small to medium sized batches by flexible and modular battery pack design and assembling, protected by high barriers to entry

Secured stable supply of state-of-the-art battery cells with leading global cell supplier SVOLT

Cost-efficient and OEM-tested manufacturing set-up with high degree of automation and capacity to produce 45,000 battery packs p.a.

Sustainability and clean energy transition are the core drivers of our business model

Attractive financial profile, with limited capex requirements and double-digit growth outlook

Our mission is to become the leading independent European battery pack manufacturer for bespoke applications

Our battery pack technology fulfils the highest automotive EV standards for safety, quality and reliability

STANDARDIZED PACKS….

…WITH BEST IN CLASS FEAUTURES

Safety

No propagation due to module integrated safety features as well as already proven and established technology with BMW

Modularity

Our battery packs can be used in single and multipack systems for vehicles, and can also be integrated in large scale stationary systems for energy storage providers

Design to cost

Cost efficient architecture with high economies of scale and reduced investment costs due to modularity

Advanced cells

From leading suppliers such as Samsung SDI and SVOLT

We have a holistic view on battery technology and continuously optimize our products along all dimensions

Serviceability

High energy density

Long lifetime

High safety

Modularity

Proven technology

Competitive price

We serve the fast-growing energy storage and commercial electric vehicles sectors

Increasing share of xEVs(1) is the main driver for battery demand, which is expected to grow rapidly to nearly 5,100 GWh in 2030 globally

GLOBAL DEMAND FOR LI-ION AND NA-ION BATTERIES GLOBAL SHARE OF xEV(1) ANNUAL PRODUCTION(2) Total Addressable Market for LION in 2030(3) 2022A 2027E 11% 9% 7% 74% 34% 13% 17% 36% (in GWh) 265 774 1,620 2,769 3,872 4,917 2020A 2022A 2024E 2026E 2028E 2030E +33.9% 77 23 14 2030E 114 (in USD bn) Commercial Vehicles Other Mobility Stationary Storage BEV PHEV & FHEV MHEV

KEY MARKET DRIVERS OUR FOCUS

• US Inflation Act (IRA), EU Net Zero Industry Act, C40 and further regulatory pressure for CO² reduction accelerating market growth
• Increasing investments in EV infrastructure
• Ongoing electrification trend across all vehicle types and strong growth potential in construction
• Sinking costs of battery cells and advances in battery technology

MODULE PRODUCTION AND PACK ASSEMBLY AS KEY VALUE DRIVERS FOR EV BATTERIES

11 Source: Roland Berger, McKinsey, Schmidt Automotive Research, IHS. Notes: (1) BEV, PHEV & FHEV, and MHEV; (2) LV production only; (3) Assumes average cost of USD 70/kWh

Strategic position in battery pack design and assembling

We focus on small to medium size batches, protected by high barriers to entry

LIMITED COMPETITION TESTING HERITAGE HIGH BARRIERS TO ENTRY FOR NICHE APPLICATIONS

▪ With our focus on small to medium size batches we limit competition from largest assemblers and battery producing OEMs

• Due to our decade-long testing and consultancy heritage, we have built substantial knowledge on batteries
• We are a renowned and highly sought after second source supplier

• The build-up of battery pack assembly capacities requires substantial upfront investments
• Building a functioning supply chain is complex and requires in-depth industry know-how

▪ We produce battery packs for commercial and leisure niche vehicles, and for Energy Storage Providers who use our packs in large scale stationary systems

We have secured long-term stable cell supply with leading global cell supplier SVOLT…

Our partnership with SVOLT will allow us to offer advanced NMC (NMX) High Energy and LFP Battery Packs to our clients. Our highly automated production setup allows for flexible production with market-leading delivery times

…which allows us to embark on a new phase capturing steady growth

First commercial delivery of our powered battery packs expected in H2 2024

13

Improvements for our clients

• Cheaper high-quality cell supply
• ~20% more energy for mobility customers
• Higher charge cycles for stationary customers
• Improvement of production efficiency
• Extension of product portfolio
• NMC: higher energy density → Mobility
• LFP: lower cost and longer life cycles → Storage

Cost-efficient and OEM-proven manufacturing set-up with high degree of automation and capacity to quadruple sales

• Our production facility in Thuringia (Germany) is up and running, with the first battery packs delivered to clients in May 2023
• High quality manufacturing equipment from a leading German automotive OEM
• High grade of automatization: The assembly of our battery packs is almost fully automated, with modern high-performance robots
• We are currently producing NMC powered battery packs
• In H2 2024 we will also be able to produce LFP powered battery packs and upgrade our NMC packs with better SVOLT cells

Our global sales approach supported by regional teams…

Our dedicated Sales Team is constantly growing:

MICHAEL REICH

Global Head of Sales

Our Sales Strategy:

• Focus on Enlarging our customer base with medium-sized and large customers
• We have won six new customers with >€300k turnover in 2023
• Dedicated Sales Strategies for Mobility and Energy Storage Solutions end-markets
• Dedicated sales office in the US to ensure customer proximity

Our proprietary developed highperformance immersion cooling technology...

Single cell fusing Supercell Monitoring System

Currently in prototype phase, market entry depending on outcome of ongoing testing with leading OEM 16▪ Higher performance then battery packs with traditional

…is tailored to the requirements of high-performance and small series applications

Steady State Cell Temperature Spread vs. Cell Dissipation Heat

• cooling methods such as bottom cooling
• Allows for extended operation time and faster charging times due to improved cooling of each single cell

Attractive financial profile, with limited Capex requirements and double-digit growth

WE HAVE GROWN OUR BUSINESS TREMENDOUSLY…

• During 2022 we have grown our revenue +90% compared to 2021, driven by new customer wins in the Mobility and Energy Storage space
• During 2023 we have won >8 new customers, of which each bought battery packs for more than €300k

…AND EXPECT TO REACH PROFITABILITY IN YEAR 2023(1)

• Capex figures in year 2022 and in the first nine months of 2023 have been impacted by the set-up of our Manufacturing site in Hildburghausen, Germany
• Our profitability will benefit from significant economies of scale after production ramp-up phase and further utilization

2. EBITDA (EURm, reported)

	WIN CUSTOMERS
--	---------------

WIN CUSTOMERS EXTEND PRODUCT OFFERING

We have a promising pipeline of new customers in the Mobility and Energy Storage segments

Our new LFP battery packs are produced especially for Energy Storage Providers

We will bring two new battery packs to market in 2024

One of these packs will use LFP technology and the other one NMC

Management Guidance

	>€55m
€54m	Sales
Sales	(2023F)
(2022A)

2024F

DELIVER FIRST SVOLT BATTERY PACKS IN H2 2024 NEW R&D PARTNERSHIPS

Our new partner SVOLT delivers state-of-the-art battery cells with improved performance

Deliver the first LFPpowered Energy Storage battery pack to clients in Q2 2024

Extend our inhouse capabilities for Battery Management Systems with a new partner

Clear focus on Energy Storage and Mobility endmarkets

>4'000 Battery Packs (2022A)

Battery Packs (2023F)

2024F >4'500

9M 2023 HIGHLIGHTS

GUIDANCE UPDATE AND CURRENT TRADING

FY2023 expected to exceed €55m driven by strong Q4 sales development

Bridge to FY 2023 Revenue Guidance (€m)

▪ Revenues are expected to exceed €55m for the fiscal year 2023E, achieving the lower-end of the previously announced guidance

• This outlook is supported by robust sales development in Q4 2023 so far, and the remaining shipments
• Excluding the impact of the recent drop in cell prices, revenues would have hit the guidance mid-point

FINANCIAL HIGHLIGHTS Q3 2023

PROFIT AND LOSS YTD Q3 2023

EURm

Income Statement	FY 2022	9M 2023
Revenues	53.8	29.8
Increase in contract assets portfolio	-0.3	0.0
Other own work capitalised	0.8	0.4
Total Revenues	54.2	30.2
Other operating income	0.3	1.8
Cost of materials	-46.7	-24.5
Personnel expenses	-3.9	-4.3
Other operating expenses	-4.2	-3.1
EBITDA	-0.2	0.1
EBITDA margin %	-0.4%	0.3%
Depreciation and amortization	-0.4	-0.6
EBIT	-0.6	-0.5
EBIT margin %	-1%	-2%
Finance income	0.1	0.1
Finance expenses	-0.1	-1.0
Share of profits of associated subsidiaries	0.0	0.0
EBT	-0.7	-1.3
Income taxes	-0.2	0.6
Other taxes	0.0	0.0
Net income / (loss)	-0.8	-0.7
Net income margin %	-2%	-2%

• €10m Revenues in Q3, with YTD revenues reached €50m and we have orders to bring us above €55m at YE.
• Other operating income was mainly due to accrued subsidies from former fiscal years.
• Cost of materials went down because we are now manufacturing packs ourselves.
• Other operating expenses stay on the same level as last year despite the ramp up of production.
• Depreciation for the production investments started mainly in Q3.
• Finance expenses were running at a €1m year to date.

CASHFLOW YTD Q3 2023

EURm

Cash Flow Statement	FY 2022	9M 2023
Cash and cash equivalents at beginning of period	1.2	3.0
Cash flow from operating activities	-6.8	1.1
Cash flow from investing activities	-2.7	-10.3
Cash flow from financing activities	11.4	9.6
Net change in cash and cash equivalents	1.8	0.4
FX effect	0.0	0.0
Cash and cash equivalents at end of period	3.0	3.5

▪ Cash flow from operating activities was €7.9m higher than end of last year due to effective working capital management.

▪ The investing activities reflect mainly the €10.3m acquisition of equipment, licenses and machinery, funded by our new acquired funds.

▪ Over the last 3 quarters, we are cash flow positive.

BALANCE SHEET YTD Q3 2023

EURm

Balance Sheet	FY 2022	9M 2023
Total Assets	29.8	43.2
A. Non-current assets	14.8	24.4
B. Current assets	15.0	18.8
Equity and liabilities	29.8	43.2
A. Equity	14.4	13.8
B. Non-current liabilities	2.1	10.8

▪ Non-current assets increased by €9.5m mainly due to the production site in Hildburghausen, a large production licence and capitalized development costs at LION Smart.

• Current liabilities increased as well due to higher trade payables (+€2.7m).
• Undrawn credit facility of approx. €5m.

INCREASED FOCUS ON INVESTOR RELATIONS ACTIVITY

Additional research coverage initiated

First initiatives taken – admitting further room for improvement

We are working on the following to create more transparency, inform the market in a timely manner, and engage with investors in a more structured way

New IR website to be launched in Q1

Roadshow and conference participation

Host capital markets day in Q1

Improve financial reporting

26

Family office roadshow

Attended German Equity Forum (EKF) in Frankfurt

Improved Investor Relations presentation

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.