LION E-Mobility — Investor Presentation 2023

May 3, 2023

Earnings call Q1/ 2023

05.05.2023

People on the call

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

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

Winfried Buss (CEO LION Smart production GmbH & LION Smart GmbH)

2

• 1. Q1/ 2023 Result (non Audited)
• 1. Update LION Smart Production
• 1. Update LIGHT Battery
• 1. Miscellaneous

Q1/2023 Result (non Audited)

Introduction

• 1. As started with the reporting from last year, LION Group will report results per legal entity as well as consolidated group results
• 1. Q1 quarter over quarter comparison is made between consolidated LION Group numbers and LION Smart GmbH
  2. Effective 01.01.23 all sales of Integration Business (I3 Packs) is handled over the LION Smart Production GmbH
  3. LION Smart GmbH will become Sales and R&D Center, both for LION Smart Production as well as for new products like Light Battery
  4. Subsequently LION Smart Production will report sales and profit, while LION Smart will report mainly cost
  5. Intercompany crosscharge is established to balance
• 1. Q1/2023 Sales is executed from LION Smart inventory only, Q2/2023 sales is expected to be a mix of inventory and own production
• 1. Intracompany cross charges are reflected in Q1/2023 numbers

Non Audited

Prel. figures in EUR M	LS GmbH Q1/23	LSP GmbH Q1/23	Consol. Q1/23	LS GmbH Q1/22	Cumulative change YoY
External sales	0.27	7.85	8.11	13.20	-5.09
Intercompany sales	1.45	0.00	0.00	0.00	0.00
Total output	1.68	7.85	8.08	13.09	-5.01
Gross margin	1.31	1.71	1.56	1.25	0.31
EBITDA	-1.29	0.88	-0.41	-0.03	-0.39
EBIT	-1.32	0.87	-0.45	-0.06	-0.40
Quarterly result	-1.43	0.77	-0.66	-0.07	-0.59

*LS GmbH: LION Smart GmbH, Garching

**LSP GmbH: LION Smart Production GmbH, Hildburghausen

• 1. As stated in key messages in the last earnings call, Q1/ 2023 revenue is lower compared to Q1 last year as customers using their own stock
• 1. Despite lower revenue, gross margin improved
• 1. Start-up cost for own production in Q1/ 2023 have been absorbed, resulting in a relatively small loss

Sales and Income - Non Audited

	LS GmbH	LSP GmbH	Consolidated	Q1/2022
	01.01.2023 -	01.01.2023 -	01.01.2023 -	01.01.2022-
EUR	31.03.2023	31.03.2023	31.03.2023	31.12.2022
Sales	265.590	7.848.752	8.114.341	13.200.596
Intercompany sales	1.453.618	0	0	0
Decrease/ Increase in inventories of finished goods and work in progress	(34.713)	0	(34.713)	(107.149)
Own work capitalized	0	0	0	0
Total output	1.684.494	7.848.752	8.079.628	13.093.447
Cost of materials	(374.628)	(6.140.358)	(6.514.986)	(11.839.085)
Gross profit	1.309.866	1.708.394	1.564.642	1.254.362

• 1. Q1/ 2023 sales lower compared to Q1/ 2022
  2. Consolidated sales of EUR 8.1M compared to EUR 13.2M in Q1/2022
  3. Some customers still use stock from last year
  4. Sales is expected to grow next quarter as customers are expected to call more products from LION Smart Production
• 1. Intercompany sales with EUR 1.5M for services provided from LION Smart to LION Smart Production
• 1. Material rate improved from 90% in Q1/ 2022 to 80% in Q1/ 2023
• 1. Gross profit up from EUR 1.2M in Q1/2022 to EUR 1.6M in Q1/2023 despite lower sales

People Cost and D&A- Non Audited

01.01.2023 -	01.01.2023 -	01.01.2023 -	01.01.2022-
			31.12.2022
1.309.866	1.708.394	1.564.642	1.254.362
5.600	34.118	39.718	68.776
(1.087.962)	(252.835)	(1.340.797)	(868.042)
(932.260)	(215.558)	(1.147.818)	(729.050)
(155.702)	(37.277)	(192.980)	(138.992)
(1.518.122)	(613.537)	(678.041)	(483.159)
(1.290.618)	876.140	(414.478)	(28.064)
(30.602)	(9.295)	(39.897)	(30.607)
(1.321.220)	866.845	(454.375)	(58.670)
	31.03.2023	31.03.2023	31.03.2023

• 1. Personal expenses up from EUR 0.9M in Q1/ 2022 to EUR 1.3M in Q1/ 2023
  2. Higher costs due to additional team in LION Smart Production
  3. Higher costs due to additional headcount in R&D in LION Smart
• 1. Depreciation slightly up compared to previous year
• 1. Operating expenses in Q1/ 2023 higher compared to Q1/ 2022, mainly due to cost of additional site in Hildburghausen
• 1. Consolidated EBIT in Q1/ 2023 negative by EUR 0.5M compared to EUR 0.1M loss in 2022

EBIT and EBT - Non Audited

	LS GmbH	LSP GmbH	Consolidated	Q1/2022
	01.01.2023 -	01.01.2023 -	01.01.2023 -	01.01.2022-
EUR	31.03.2023	31.03.2023	31.03.2023	31.12.2022
Earnings before Interest and Taxes (EBIT)	(1.321.220)	866.845	(454.375)	(58.670)
Other interest and similar income	23.813	0	23.813	12.675
Interest and similar expenses	(132.126)	(96.865)	(228.992)	(20.168)
Financial result	(108.313)	(96.865)	(205.178)	(7.493)
Earnings before taxes	(1.429.533)	769.979	(659.554)	(66.164)
Taxes on income	0	0	0	0
Other tax	0	(197)	(197)	0
Earnings after tax	(1.429.533)	769.782	(659.751)	(66.164)

LSP GmbH: LION Smart Production GmbH, Hildburghausen

• 1. Q1/ 2023 financial result lower compared to Q1/ 2022, mainly due to higher interest cost
• 1. LION Smart reports a consolidated EBT of EUR -0.7M.
  2. LION Smart Production reported a positive EBT of EUR 0.8M, however due to use of the carry forward loss only minor tax payments are due
• 1. Overall earnings after tax in Q1/ 2023 is EUR -0.7M LS GmbH: LION Smart GmbH, Garching compared to EUR -0.1M in Q1/ 2022

Balance Sheet and Cash Flow Q1/ 2023

Assets - Non audited

	LS GmbH	LSP GmbH	Consolidated	LS GmbH	LSP GmbH	Consolidated
EUR	31.03.2023	31.03.2023	31.03.2023	31.12.2022	31.12.2022	31.12.2022
ASSETS
A. Fixed Assets	8.176.312	3.966.258	12.142.570	8.201.793	1.892.728	10.094.521
I Intangible Assets	3.241.610	33.413	3.275.023	3.248.369	34.412	3.282.781
II Tangible Assets	344.143	3.932.844	4.276.987	362.865	1.858.316	2.221.181
III Financial Assets	4.590.560	0	4.590.560	4.590.560	0	4.590.560
B. Current Assets			6.036.568 9.886.133 11.152.657 11.960.076 9.344.191 13.711.011
I Inventories	55.151	3.881.258	3.936.409	99.466	6.449.225	6.548.692
II Receivables and other assets	5.169.255	4.171.383	4.570.594	10.328.225	1.879.583	4.614.552
III Bank balances, cash and cash equivalents	812.162	1.833.492	2.645.654	1.532.385	1.015.383	2.547.767
C. Prepaid expenses	245.422	16.646	262.068	111.965	9.044	121.009
Total assets	14.458.302	13.869.037	23.557.294	20.273.835	11.245.963	23.926.541

• 1. Overall sssets nearly unchanged at 23.6M end of Q1/2023
  2. Fixed assets up from EUR 10.0M to EUR 12.1M mainly due to increase in tangible assets (e.g. assets under construction, factory) at LION Smart Production
  3. Current assets down from EUR 13.7M in Q1/2022 to EUR 11.2 M in Q1/2023 mainly due to sale of inventory in LION Smart Production

Balance Sheet and Cash Flow Q1/ 2023

Equity and Liabilities - Non audited

	LS GmbH	LSP GmbH	Consolidated	LS GmbH	LSP GmbH	Consolidated
EUR	31.03.2023	31.03.2023	31.03.2023	31.12.2022	31.12.2022	31.12.2022
EQUITY AND LIABILITY
A. Equity	6.115.918	(743.082)	5.372.836	7.545.451	(1.512.864)	6.032.587
I Subscribed capital	129.500	25.000	154.500	129.500	25.000	154.500
II Capital reserve	9.766.550	0	9.766.550	9.766.550	0	9.766.550
III Accumulated losses brought forward	(2.350.599)	(1.537.864)	(3.888.463)	(4.309.265)	0	(4.309.265)
IV Result for the period	(1.429.533)	769.782	(659.751)	1.958.665	(1.537.864)	420.801
B. Accruals	571.313	137.345	708.658	664.246	73.459	737.705
C. Liabilities	7.771.071	14.474.773	17.475.800	12.064.138	12.685.368	17.156.249
Total equity and liabilities	14.458.302	13.869.037	23.557.294	20.273.835	11.245.963	23.926.541

• 1. Equity down from EUR 6.0M end of 2022 to EUR 5.4M in Q1/2023
  2. Accumulated loss of EUR 3.9M in Q1/23 versus EUR 4.3M end of 2022
• 1. Liabilities and accruals nearly unchanged

Cash Flow Full year Q1/ 2023

Non audited

	01.01.2023 -	01.01.2023 -	01.01.2023 -	01.01.2022 -
EUR	31.03.2023	31.03.2023	31.03.2023	31.03.2022
Result for the period	(1.429.533)	769.782	(659.751)	(66.164)
Cash flow from operating activities	(715.102)	827.707	112.605	749.559
Cash flow from investing activities	(5.121)	(9.597)	(14.718)	(290.480)
Cash flow from financing activities	-	-	-	550.000
Net change in cash and cash equivalents	(720.223)	818.110	97.887	1.009.079

1. Overall cash flow from operations positive by EUR 0.1M in 2022 compared to EUR 0.7M in Q1/ 2022

2. Cash flow from investments lower compared to Q1/2022

3. Cash flow from financing EUR 0M in Q1/2023 as no financing was done.

=> Net change in cash and equivalents of EUR 0.1M in Q1/ 2023 versus EUR 1.0M in Q1/ 2022

Q1/ 2023 Key Messages

• 1. Company prepares for growth
  2. Production site in Hildburghausen is ready for shipments
• 1. Q1/2023 sales was coming from LION Smart stock. Deliveries in Q2/2023 will be a mixture of inventory and own production.

• 1. Q1/2023 Result (non Audited)
• 2. Update LION Smart Production
• 1. Update LIGHT Battery
• 1. Miscellaneous

Update LION Smart Production

Plant Hildburghausen

• 1. Product requalification finished
• 1. LION Smart will market it's own produced Battery packs under "LION Smart SE09"
• 1. LION Smart Production has produced SE09 battery packs from its production line, waiting in stock for customer shipment
• 1. Delivery to customer expected to start week commencing May 8th

LION Smart Production Team celebrates the start of production by signing the first battery

• 1. Q1/2023 Result (non Audited)
• 1. Update LION Smart Production
• 3. Update LIGHT Battery
• 1. Miscellaneous

Update LIGHT Battery

Customer prototype project

• 1. OEM Project LIGHT Battery Phase 2 is ongoing
  2. Assembly of phase 2 LIGHT Battery is scheduled for May
  3. Delivery of modules to customer is scheduled for June 2023
  4. Customer testing is still expected to be done in Q3/2023

• 1. FY 2022 Result (non Audited)
• 1. Update LION Smart Production
• 1. Update LIGHT Battery
• 4. Miscellaneous

FY 2022 - Audit Report

• 1. Financial audit report for FY 2022 is under review by external auditors
  2. Final version is expected to be released in May (via separate announcement)

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.