LION E-Mobility AG
LION E-Mobility AG: LION Smart GmbH and LION Smart Production GmbH today published their preliminary, unaudited financial figures for the second quarter 2023

 PRESS RELEASE

• Sales EUR 11.3M in Q2/23 +40% increase compared to Q1/23
• Gross profit EUR 2.6M in Q2/23 higher than Q1/23 EUR 1.6M
• Positive cash flow EUR 5.7M in 1HY (1HY/22: EUR -0.05M)

Prel. Figures EUR M	2023 Q2 LS+LSP	2023 Q1 LS+LSP	2023 1HY LS+LSP	2022 1HY LS	1HY YoY
External sales	11.33	8.11	19.44	24.24	-4.80
Total output	11.61	8.08	19.69	24.34	-4.65
Gross profit	2.56	1.56	4.13	3.58	0.55
EBITDA	0.38	-0.41	-0.04	0.96	-1.03
EBIT	0.33	-0.45	-0.12	0.90	-1.46
Result for the period	0.10	-0.66	-0.56	0.90	-1.46

Garching near Munich, August 3^rd, 2023 – LION Smart GmbH (LS) and LION Smart Production GmbH (LSP), fully owned subsidiaries of LION E-Mobility AG, today published their preliminary, unaudited financial figures for the second quarter ended June 30^th, 2023.

Results of operations of LION Smart GmbH and LION Smart Production GmbH as of June 30^th, 2023

The business performance of the two German operating companies was determined in Q2/23 by the start of the series production and deliveries of the first LION SE09 batteries in mid May.

In Q2 sales revenues of EUR 11.3M were generated, which corresponds to a sales growth of approx. 40% compared to Q1/23. It was generated evenly from the stationary storage market as well as from commercial vehicles and other mobility markets. In consequence, sales revenues totaling 19.44M could be achieved in the 1^st half of 2023.

Compared to Q1 2023, total operating performance (sales, own work capitalized, changes in inventories) increased by EUR 3.5M to EUR 11.61M (Q1/23: EUR 8.08M).

The cost of materials – consisting of cost of raw materials, finished goods and other purchased services – decreased to EUR 15.6M (1HY/22: EUR 20.8M), which is also reflected in the cost of materials ratio of 80% compared to last year’s 85% (calculated from the ratio of cost of materials to sales and changes in inventories).

Hence, gross profit of EUR 4.13M was generated for the 1^st half of 2023, which corresponds to a gross profit margin of 21% (1HY/22: 14.7%).

Personnel expenses stayed the same compared to the Q1 at EUR 1.34M. As of June 30^th, 2023, 58 employees and 7 working students were employed by LION Smart GmbH and LION Smart Production GmbH (June 30^th 2022: total of 54).

Other operating expenses increased from EUR 0.7M to EUR 0.9M compared to Q1/23 due to the ongoing expansion and ramp up of production in Hildburghausen.

Earnings before interest and taxes (EBIT) in Q2/23 amount to EUR 0.33M, compared to Q1/2023 with EUR -0.45M. As of June 30^th, 2023, YTD EBIT totals to EUR -0.12M.

The financial result in Q2/23 is EUR -0.02M lower than Q1 due to increased interest rates.

LION Smart GmbH and LION Smart Production GmbH generated a pre-tax result of
EUR 0.1M in Q2/23 (Q1: EUR -0.66M), leading overall to EUR -0.56M for the first half of 2023.

Net assets and financial position as June 30^th, 2023

Total assets increased by EUR 23.72M to EUR 47.28M as of June 30^th, 2023 (March 31^st, 2023: EUR 23.56M):

Fixed assets as of June 30^th, 2023, are EUR 19.74M (March 31^st, 2023: EUR 12.14M) with the set-up of the production in Hildburghausen increasing tangible assets to EUR 11.60M (March 31^st, 2023: EUR 4.28M).

In Q2/23, development costs totaling EUR 0.28M were recognized as own work capitalized. As of June 30^th, 2023, internally generated intangible assets adjust at EUR 3.46M (March 31^st, 2023: EUR 3.18M).

Loans to companies in which an equity investment is held remained unchanged (June 30^th 2023: EUR 2.04M).

Current assets increased by EUR 16.23M to EUR 27.39M (March 31^st 2023: EUR 11.15M):

Inventories rose by EUR 3.79M to EUR 7.73M due to start of own production.

Receivables and other assets increased by EUR 6.79M to EUR 11.36M compared to the previous quarter (March 31^st 2023: EUR 4.57M).

As of June 30^th, 2023, cash and cash equivalents amounted to EUR 8.30M due to the recently granted EUR 6M loan by the parent company (Q1/2023: EUR 2.65M).

The equity of LION Smart GmbH and LION Smart Production GmbH amounts to EUR 5.48M as of June 30^th,2023 compared to EUR 5.37M end of March. The equity ratio as of June 30^th, 2023, decreased to 11.6% compared to 22.8% end of March.

Accruals amount to EUR 0.72M as of June 30^th, 2023 (March 31^st: EUR 0.71M). Other accruals mainly include personnel costs, such as overtime, vacation not taken and variable salary components.

Liabilities increased to EUR 41.1M at the end of June compared to EUR 17.48M (March 31^th, 2023) and consist mainly of increased trade payables due to production ramp up, a larger license and the additional EUR 6M loan granted by the parent company in June 2023.

Unchanged to the previous year, there are no liabilities to banks as of June 30^th, 2023.

Cash flow and financing as of June 30^th, 2023

Cash flow from operating activities was in Q2/23 with EUR 0.26M higher than Q1/23 (EUR 0.11M) due to higher sales in Q2/23.

As of June 30^th, 2023, Cash flow from investing activities is negative due to the acquisition of equipment and machinery to produce own LION SE09 batteries as well as the additions to internally generated intangible assets: EUR -0.62M (1HY/23: EUR -0.33M).

Cash flow from financing activities in 1HY/23 was positive with EUR 6M due to a new loan granted by the parent company (1HY/22: EUR 0.55M).

 In summary, a positive cash flow of EUR 5.75M can be reported for 1HY (1HY/22: EUR -0.05M).

Outlook for the second half of fiscal year 2023

The foundation for future growth in the following years was laid and sales is expected to increase significantly in the second half of 2023 with the full establishment of production. Therefore, the published sales guidance for the current year 2023 will be reiterated.

Despite the investments in products and production facilities, a positive EBITDA can be expected for the full year.

The companies are financed by the parent company. The management is convinced that the companies are on the right track for further growth and continues to invest in products and technologies.

 About LION E-Mobility AG:

LION E-Mobility AG is a listed Swiss holding company founded in 2011 with promising strategic investments in the e-mobility sector, especially in the field of electrical energy storage and lithium-ion battery system technology.

The company holds 100% of the German LION Smart GmbH, a developer of battery packs and battery management systems and 100% of LION Smart Production GmbH, a battery pack manufacturer. LION Smart GmbH also holds a 30% stake in TÜV SÜD Battery Testing GmbH, a successful joint venture with TÜV SÜD AG. LION E-Mobility AG also holds 100% of the shares in LION E-Mobility North America Inc. and LION Smart North America Inc.

www.lionemobility.com

Responsible for the press release: BoD LION E- Mobility AG

LION Smart GmbH & LION Smart Production GmbH

Winfried Buss

Managing Director

LION E-Mobility Investor Relations

Frank Schönrock

Phone: +49 (0) 1737025315

E-Mail: ir@lionemobility.com | www.lionemobility.com

Disclaimer:

Statements that express or contain forecasts, expectations, views, plans, goals and assumptions regarding future events or performance are not considered historical facts and may therefore be forward-looking statements. Forward-looking statements are based on the expectations, estimates and plans at the time the statements were made, and therefore involve a number of risks and uncertainties that could cause actual results or events to differ materially from those currently anticipated become. LION E-Mobility AG is under no obligation to update the forward-looking statements in this press release.