LION E-Mobility — Investor Presentation 2024

Nov 12, 2024

CORPORATE FINANCE FINANCIAL RESTRUCTURING Preliminary Group results 9M 2024

HL.com

FINANCIAL AND VALUATION ADVISORY November 2024

FINANCIAL HIGHLIGHTS Q3 2024

PROFIT AND LOSS YTD Q3 2024

EURm

Income Statement	9M 2024	9M 2023
Revenues	12.4	29.8
Increase in contract assets portfolio	0.0	0.0
Other own work capitalised	0.5	0.4
Total Earnings	12.9	30.2
Other operating income	0.4	1.8
Cost of materials	-10.9	-24.5
Personnel expenses	-4.7	-4.3
Other operating expenses	-3.8	-3.1
EBITDA	-6.0	0.1
EBITDA margin %	-46.7%	0.3%
Depreciation and amortization	-0.9	-0.6
EBIT	-6.9	-0.5
EBIT margin %	-53.7%	-2%
Finance income	0.1	0.1
Finance expenses	-1.9	-1.0
Share of profits of associated subsidiaries	0.0	0.0
EBT	-8.7	-1.3
Taxes	2.3	0.6
Result	-6.5	-0.7

• 9M 2024 revenue of 12.4m EUR is lower than the 29.8m EUR in 9M 2023, but Q3 2024 saw a strong 6.4m EUR, showing resilience in a challenging market
• Personnel expenses increased as a result of strategic investments in R&D. However, Q3 2024 personnel costs were notably lower than the H1 average, reflecting better cost control and more efficient resource management
• Other Operating Expenses showed a 33% reduction compared to the H1 average, driven by streamlined operations and a focus on cost control during the quarter
• Q3 2024 finance expenses remained stable, reflecting consistent financing costs and efficient capital management following the higher financing needs in the first half

CASHFLOW YTD Q3 2024

EURm

Cash Flow Statement	9M 2024	FY 2023
Cash and cash equivalents at beginning of period	4.4	3.0
Cash flow from operating activities	-4.1	2.8
Cash flow from investing activities	-1.2	-10.8
Cash flow from financing activities	0.3	9.5
Net change in cash and cash equivalents	-5.0	1.4
FX effect	0.0	0.0
Cash and cash equivalents at end of period	-0.5	4.4

• Cash flow from operating activities, initially positive at 2.8m EUR in 2023, shifted to negative in early 2024 before recovering to 1.6m EUR in Q3 (9M: -4.1m) due to favorable adjustments in trade payables and inventory
• Cash flow from investing activities saw a reduced outflow of 0.1m EUR in Q3, reflecting lower spending on intangible assets
• Cash flow from financing activities moved from minor outflows in Q1 to a 2.0m EUR inflow from new bank liabilities in Q2, then returned to an outflow in Q3 as financing and leasing costs were adjusted

BALANCE SHEET Q3 2024

EURm

Balance Sheet	Sept 30, 2024	Dec 31, 2023
Total Assets	40.7	69.3
A. Non-current assets	28.3	25.5
B. Current assets	12.4	43.8
Equity and liabilities	40.7	69.3
A. Equity	7.1	13.5
B. Non-current liabilities	5.8	8.3
C. Current liabilities	27.8	47.5

• Total Assets dropped from 69.3m EUR at YE 2023 to 40.7m EUR in Q3 2024, largely due to reductions in inventories and receivables. Non-current assets remained steady, with deferred tax assets up to 4.5m EUR, supporting long-term resilience
• Equity decreased from 13.5m EUR at YE 2023 to 7.1m EUR in Q3 2024, reflecting operational challenges. Ongoing adjustments show proactive steps to balance equity and address short-term pressures, reinforcing financial stability
• Current Liabilities declined from 47.5m EUR at YE 2023 to 27.8m EUR by Q3 2024, with trade payables down nearly 70%. Stable other liabilities from Q2 to Q3 underscore effective financial management for a more balanced structure. Current liabilities include a flexible shareholder loan

LION Smart – Independent, Full-Scale Battery Manufacturer

Running Business

✓ Audited, automotive grade battery pack production: Highly-automated production line with process-parameters documented, HV-trained staff, BMS-know-how, test-capabilities, fully equipped prototype workshop

Certifications: ISO 9001, ISO 14001* , ISO 50001* , IATF 16949* , TISAX

✓ Off-the-shelf products for mobility and stationary BESS** applications:

SE09-pack (BMW i3 pack) is road proven; high safety, quality & reliability grade confirmed by market; energy and power upgrade in development

Product Certificates, i.e. UN38.3, ECE-R10, ECE-R100Rev2, ISO26262

✓ Running business in Americas and Europe with ~€56m revenue in 2023 and >60 employees, 15 design wins in trucks, buses, off-highway and BESS

* In execution, for 2025

** Battery Energy Storage System

Innovation Business

• ✓ Successful PoCs with OEM customer (PHEV)
• ✓ Best-in-class cooling Optimal thermo-management by maximized active cooled contact surface
• ✓ Single Cell BMS with Electric Impedance Spectroscopy (EIS)

✓ Ready for nomination and industrialization

Running Business

LION Smart Mobility 42 / LION Smart Storage 42 ("BMW i3 Pack")

The battery pack market was very challenging in 2024, not just for us but also for our competitors and customer base.

• Mobility market: slower than expected, especially due to delayed reduction of key interest rates in the EU/US and uncertainty of election in US
• Storage market: collapsed due to oversupply of cells and modules from automotive OEM and very low-priced container-solutions from Asia

Optimistic Mid-Term Outlook

• Mobility business: picking up, based on strong European business, expected acceleration in H2-2025 based on recovery of US-business
• Storage business: market stays difficult. Focus on "Power niches" (UPS, C-rates are more important than energy - fast available energy for short time)
• Customer activities: increasing again / positive outlook by customers USA/CANADA: adjustments on competitor landscape leads to new opportunities Promising discussion with (new) etruck- and ebus-makers

Why immersion cooling?

What makes our immersion cooled technology unique?

Highlights

• 1. Best-in-class cooling Optimal thermo-management by maximized active cooled contact surface
• 2. Single Cell BMS with Electric Impedance Spectroscopy (EIS)

3. High-end algorithms

Best-in-class SoX calculation, thermal run-away and lithium platting detection

Immersion Cooled Batteries

Our target vehicle class are high performance BEVs and PHEVs

Battery target specifications

✓ Very high discharge and charge rate

• ✓ High power density
• ✓ Continuous power output / no derating

16-20C (at 10s)

520KW out of a 32kWh at 800V

Testing under race-track conditions

Immersion Cooled Batteries

Our solution outperforms OEM batteries in series

Temperature increase [K] Available Power [kW] Speed [km/h]

Immersion Cooled Battery Technology

Target customers and applications

Target customers PHEV and BEV carlines >100k€ selling price PHEV applications Upcoming applications Race car like 1,4-5 kWh Sportscar 5-10 kWh High-performance model 15-30 kWh + Bi-electrical BEV Performance 15-30 kWh + Long Range Battery Megawatt BEV All immersion cooled battery 50-100 kWh Value-add immersion cooled battery .. and others ∑ 2030: ~900k cars And other applications e.g. for heavy-duty vehicles Aston Martin, Audi Sport, Bentley, BMW M-GmbH, Chevrolet, Dodge, Ferrari, Ford, GM, Lamborghini, Lotus, Lotus, Mercedes- AMG, McLaren, Porsche

Immersion Cooled Battery Technology

Market potential for PHEV and BEV applications

Comments

• LION internal estimates of the global market size for immersion in Europe and North America

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.