LION E-Mobility

Investor Presentation • Mar 22, 2023

Earnings call, 24.03.2023

Full year 2022

People on the call

Alessio Basteri

Ian Mukherjee

Winfried Buss

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

Full Year 2022 Result (non Audited)

• 1. Full year 2022 numbers will be reported for the 2 legal entities
• LION Smart GmbH, Garching
• LION Smart Production GmbH, Hildburghausen
• Consolidated both entities
• 1. Revenue in 2022 was realized by LION Smart GmbH while LION Smart Production GmbH expensed start-up costs during 2022
• 1. True-up of both German companies by 31.12.2022
• 1. Comparison is done between 2021 LION Smart GmbH and 2022 consolidated figures of LION Smart companies, however both companies are shown separately

Non Audited

Preliminary figures in EUR milion	LS GmbH* 2022	LSP GmbH** 2022	Consolidated 2022	Consolidated 2021	Cumulative change YoY
External Sales	53.76	0.00	53.76	29.61	$+24.15$
Intercompany sales	7.59	0.00	0.00	0.00	0.00
Total output	61.69	0.00	54.10	30.08	$+24.0$
EBITDA	2.12	$-1.65$	0.47	$-0.70$	$+1.17$
Annual result	2.06	$-1.70$	0.36	$-1.00$	$+1.36$

*LS GmbH: LION Smart GmbH, Garching **LSP GmbH: LION Smart Production GmbH, Hildburghausen

• 1. Revenue Guidance was met with prox. EUR 54M Sales in 2022
• 1. Integration business with sale of battery packs is the main driver for the growth
• 1. In 2022 LION Smart & LION Smart Production could achieve a consolidated positive EBIT despite significant start-up cost for LION Smart Production GmbH

Sales and Income - Non Audited

	LS GmbH	LSP GmbH	Consolidated	2021
	$01.01.2022 -$	$01.01.2022 -$	$01.01.2022 -$	01.01.2021-
EUR	31.12.2022	31.12.2022	31.12.2022	31.12.2021
Sales	53.759.969	0	53.759.969	29.608.747
Intercompany sales	7.593.256	0	$\mathbf 0$	0
De- / Increase in inventories of finished goods and work in progress	(316.286)	0	(316.286)	144,360
Own work capitalized	654.193	O	654.193	330,556
Total output	61.691.132	0	54.097.876	30.083.663
Cost of materials	(52.917.692)	(3.762)	(46.472.228)	(25.939.911)
Gross profit	8.773.440	(3.762)	7.625.648	4.143.752

LS GmbH: LION Smart GmbH, Garching LSP GmbH: LION Smart Production GmbH, Hildburghausen

• 1. Fully year 2022 Sales higher compared to 2021
• Sales up from EUR 29.6M in 2021 to EUR 53.8M in 2022
• Result in line with EUR 50-55M full year guidance given in last announcement
• 1. Intercompany sales with EUR 6.4M for transfer of Inventory from LION Smart to LION Smart Production and EUR 1.1M for intercompany services; these intercompany sales are consolidated with cost of materials sold and operating costs at LS. At LSP, these goods purchased are in inventory and the intercompany services at operating costs.
• 1. Material Rate with prox. 86% (2022) remains nearly unchanged to 2021
• 1. Gross Profit of EUR 7.6M in 2022 compared to EUR 4.1M in 2021

People Cost and D&A- Non Audited

	LS GmbH	LSP GmbH	Consolidated	2021
	$01.01.2022 -$	$01.01.2022 -$	$01.01.2022 -$	01.01.2021-
EUR	31.12.2022	31.12.2022	31.12.2022	31.12.2021
Gross profit	8.773.440	(3.762)	7.625.648	4.143.752
Other operating income	418.473	30,079	448.552	364.432
Personnel expenses	(3.561.396)	(312.322)	(3.873.718)	(3.020.126)
a.) Wages and salaries	(3.000.811)	(258.460)	(3.259.272)	(2.510.703)
b.) social security and pension expense	(560.585)	(53.862)	(614.447)	(509.423)
Depreciation and amortization of intangible fixed assets and tangible fixed assets	(134.376)	(7.226)	(141.602)	(330.848)
Other operating expense	(3.510.373)	(1.366.671)	(3.733.013)	(2.189.934)
Earnings before Interest and Taxes (EBIT)	1.985.768	(1.659.902)	325.866	(1.032.724)

LS GmbH: LION Smart GmbH, Garching LSP GmbH: LION Smart Production GmbH, Hildburghausen

• 1. Personal Expense up from EUR 3.0M in 2021 to EUR 3.9M in 2022
• Higher Cost due to additional team in LION Smart Production
• Higher cost due to additional Headcount in R&D in Lion Smart
• 1. Depreciation slightly lower compared to previous year

• Operating Expense in 2022 higher compared to previous year, mainly due to consulting work in LION Smart as well as additional site in Hildburghausen

• Consolidated EBIT in 2022 positive by EUR 0.3M compared to EUR 1.0M loss in 2021

EBIT and EBT - Non Audited

	LS GmbH	LSP GmbH	Consolidated	2021
	01.01.2022 -	01.01.2022 -	01.01.2022 -	01.01.2021-
EUR	31.12.2022	31.12.2022	31.12.2022	31.12.2021
Earnings before Interest and Taxes (EBIT)	1.985.768	(1.659.902)	325.866	(1.032.724)
Other interest and similar income	167.394	$\Omega$	167.394	56.303
Interest and similar expenses	(55.163)	(40.884)	(96.047)	(26.871)
lFinancial result	112.232	(40.884)	71.348	29.432
Earnings before taxes	2.097.999	(1.700.786)	397.214	(1.003.292)
Taxes on income	(34.662)	0	(34.662)	O
Other tax	(648)	(645)	(1.293)	(684)
Earnings after tax	2.062.689	(1.701.431)	361.259	(1.003.976)

LS GmbH: LION Smart GmbH, Garching LSP GmbH: LION Smart Production GmbH, Hildburghausen

• 1. 2022 Financial result slightly higher compared to 2021, mainly due to higher interest received
• 1. LION Smart reports an EBT of EUR 0.4M, however due to use of the carry forward loss only minor tax payments are due
• 1. Overall Earnings after tax in 2022 is EUR 0.4M compared to EUR -1.0M in 2021

Balance Sheet and Cash Flow Full year 2022

Assets - Non audited

	LS GmbH	LSP GmbH	Consolidated	2021
EUR	31.12.2022	31.12.2022	31.12.2022	31.12.2021
ASSETS
A. Fixed Assets	8.097.765	1.729.161	9.826.926	7.434.350
I Intangible Assets	3.144.340	2.536	3.146.876	2.488.073
Il Tangible Assets	362.865	1.726.625	2.089.490	355,718
III Financial Assets	4,590,560		4,590,560	4.590.560
B. Current Assets	12.200.714	9.311.294	13.918.752	5.966.175
I Inventories	418.985	6.471.225	6.890.211	508,088
Il Receivables and other assets	10.249.344	1.824.686	4.480.774	4.332.357
III Bank balances, cash and cash equivalents	1.532.385	1.015.383	2.547.767	1.125.730
C. Prepaid expenses	111.965	9.044	121.009	79.840
Total assets	20.410.444	11.049.499	23.866.687	13.480.366

1. Overall Increase from EUR 13.5M end of 2021 to EUR 23.9M in 2022

2. Fixed assets up from EUR 7.4M to EUR 9.8M mainly due to capitalisation of R&D work as well as assets under construction in LION Smart Production

3. Current assets up from EUR 6.0M in 2021 to EUR 13.9M in 2022 mainly due to higher inventory in LION Smart Production as well as cash and cash equivalents

LS GmbH: LION Smart GmbH, Garching

LSP GmbH: LION Smart Production GmbH, Hildburghausen

Balance Sheet and Cash Flow Full year 2022

Equity and Liabilities - Non audited

EUR	31.12.2022	31.12.2022	31.12.2022 31.12.2021
EQUITY AND LIABILITY
A. Equity	7.649.475	(1.676.431)	5.973.044	5.586.785
I Subscribed capital	129,500	25,000	154,500	129,500
II Capital reserve	9.766.550		9.766.550	9.766.550
III Accumulated losses brought forward	(4.309.265)		(4.309.265)	(3.305.289)
IV Result for the period	2.062.689	(1.701.431)	361.259	1.003.976
B. Accruals	664.246	73.459	737.705	432.037
C. Liabilities	12.096.723	12.652.471	17.155.937	7.461.543
Total equity and liabilities	20.410.444	11.049.499		23.866.687 13.480.366

1. Equity up to EUR 6.0M compared to EUR 5.6M in 2021

• Subscribed capital higher due to equity of LION Smart Production GmbH
• Accumulated loss brought forward up by prox. EUR 1M from 2021 to 2022
• Liabilities increased from EUR 7.5M to EUR 17.1M mainly due to increase of payables to affiliated companies

Cash Flow Full year 2022

Non audited

	LS GmbH	LSP GmbH	Consolidated	2021
	$01.01.2022 -$	01.01.2022 -	01.01.2022 -	01.01.2021-
EUR	31.12.2022	31.12.2022	31.12.2022	31.12.2021
Result for the period	2.062.689	(1.701.431)	361.259	(1.003.976)
Cash flow from operating activities	(3.072.356)	(2.795.288)	(5.867.644)	386.724
Cash flow from investing activities	(1.070.990)	(914.329)	(1.985.319)	(485.660)
Cash flow from financing activities	4.550.000	4.725.000	9.275.000	710,000
Net change in cash and cash equivalents	406.654	1.015.383	1.422.037	611.064

• 1. Overall Cash Flow from operations negative by EUR 5.9M in 2022 compared to EUR 0.4M in 2021
• Financing of inventory for production transfer period
• 1. Cash Flow from investments higher compared to 2021, mainly due to capitalisation of R&D Work as well as invest in LION Smart Production
• 1. Cash Flow from Financing higher due to financing of inventory as well as invests in LION Smart Production
• => Net change in Cash and Equivalents up from EUR 0.6M in 2021 to EUR 1.4M in 2022

2022 Key Messages

• 1. Company continues on its growth path
• Revenue for 2022 Significantly up compared to 2021, so growth momentum remains solid
• Previous given guidance of EUR 50-55M for 2022 was met
• Overall LION Smart companies delivered a consolidated positive full year 2022 EBIT
• 1. Q4/2022 Sales was coming from LION Smart Stock. Deliveries in the first half of 2023 will be a mixture of inventory and own production.
• 1. As customers also have built-up own stock in parallel, LION Smart Sales in the first half of 2023 is expected to be lower compared to second half of 2023
• 1. FY 2022 Result (non Audited)
• 2. Update LION Smart Production
• 1. Update LIGHT Battery
• 1. Miscellaneous

Update LION Smart Production

Plant Hildburghausen

• 1. Relocation of production line and installation completed
• 1. Product Requalification ongoing
• 1. Deliveries to customers planned 2nd half of April 2023
• 1. Official opening ceremony is expected to be held end of Q2/ 2023
• 1. FY 2022 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 was re-scheduled due to lessons learned and optimization of LIGHT Battery from Phase 1
• Improvements for Phase 2 LIGHT battery sample will be implemented in April
• Assembly of Phase 2 LIGHT battery is now scheduled for May
• Delivery of modules to customer is scheduled for May/ June 2023

• Customer testing is expected to be done in Q3/2023

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

Welcome to our new Global Head of Sales

Michael Reich

Michael has many years of experience as Sales Manager, Head of Sales and Head of Program Management at OSRAM Group.

Most recently, he was Head of Sales and Program Management at OSRAM Continental and Plastic Omnium Lighting for BMW and ZKW. Prior to that, Michael led the OSRAM Automotive sales team from Asia, and he had responsibility for the OEM business in APAC. Before this, he was Global Key Account Manager responsible for the business with the customer Continental Automotive, representing all business units of OSRAM at this customer. Michael started his career in application engineering and product marketing at OSRAM Opto Semiconductors.

Michael holds a degree in business administration from the Cooperative State University Stuttgart, and a master's degree in electrical engineering from the Technical University of Hamburg-Harburg.

Michael is 47 years old, married and has two children.

2018-2023	Head of Sales and Program Management, OSRAM Continental GmbH, et al., Germany
2015-2017	Head of Sales, Automotive, OSRAM Asia Ltd., Singapore
2012-2015	Key Account Management, Automotive, OSRAM GmbH, Germany
2006-2011	Several Positions at OSRAM Opto Semiconductors GmbH, Germany

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.