EQS-News: LION Smart GmbH and LION Smart Production GmbH release consolidated figures for fiscal year 2022

• LION Smart GmbH again with the highest sales in the company's history (EUR 53.8M)
• Consolidated positive EBITDA of EUR 0.5M for fiscal year 2022.
• Positive cash flow for fiscal year 2022
• LION Smart GmbH (LS) and LION Smart Production GmbH (LSP) release consolidated figures for fiscal year 2022.

Garching near Munich, March 23, 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 year ended December 31, 2022. The business of the innovative supplier of lithium-ion battery systems and integrative battery solutions continued to develop positively as planned in fiscal year 2022. In addition to a significant increase in sales revenues and a broadening of the customer base, the expansion of the company's own production line was a key feature of the past fiscal year.

Results of operations of LION Smart GmbH and LION Smart Production GmbH as of December 31, 2022

The business performance of the two German companies was characterized in the financial year 2022 primarily by the Integration Business division and the build-up of the company's own plant.

In 2022, sales revenues totaling EUR 53.8M were realized. Revenues were in line with expectations for the preceding fiscal year.

In fiscal year 2022, development costs of EUR 0.65M were recognized as own work capitalized. As of December 31, 2022, internally generated intangible assets amounted to EUR 3.1M (previous year: EUR 2.4M).

Compared to the previous year, total operating performance (sales, own work capitalized, changes in inventories) increased significantly by EUR 24.0M to EUR 54.1M (previous year: EUR 12.6M).

The cost of materials - consisting of cost of materials and other purchased services - increased to EUR 46.47M (previous year: EUR 25.94M), in particular due to the higher business volume. However, the cost of materials ratio of 86.96% (calculated from the ratio of cost of materials to sales and changes in inventories) remained almost unchanged compared to the previous year (previous year: 87.18%).

Hence, a consolidated gross profit of EUR 7.63M (previous year: EUR 4.14M) was generated for the reporting period, which corresponds to a gross profit margin of 14.27% (previous year: 13.79%).

The increase in personnel expenses compared with the previous year is mainly due to the expansion of sales activities and the increase in the number of staff at LION Smart Production GmbH. LION Smart GmbH had an average of 44 permanent employees and eight working students during the year (previous year: 34 permanent employees and 9 working students). LION Smart Production GmbH hired a total of 13 new employees in 2022 to build up its own production.

Other operating expenses increased from EUR 2.2M to EUR 3.7M due to the expansion of production in Hildburghausen.

Consolidated earnings before interest and taxes (EBIT) as of December 31, 2022 amount to EUR 0.33M and therefore exceeded expectations at the beginning of the year (previous year:
EUR -1.03M).

As in the previous year, the financial result of LION Smart GmbH continues to be positive. This is mainly due to the loans granted to TÜV Süd Battery Testing GmbH (TSBT) and the associated interest income. No repayments were made by TSBT in the fiscal year. As of December 31, 2022, there are loans to TSBT in the amount of EUR 2.04M (previous year: EUR 2.04M).

The interest expenses mainly result from loan agreements with LION E-Mobility AG. None of these loans were repaid in the fiscal year, instead additional loans totaling EUR 9.25 M were taken out for both companies. In 2022, interest expenses amounted to EUR 0.096 M (previous year: EUR 0.027M).

LION Smart GmbH and LION Smart Production GmbH generated pre-tax result of EUR 0.4M in the reporting period (previous year: EUR -1.003M).

Net assets and financial position as of December 31, 2022

Total assets increased by 77% to EUR 23.87M as of December 31, 2022 (December 31, 2021: EUR 13.5M), mainly due to the increase in finished goods and work in progress for the build-up of an own warehouse.

Non-current assets increased by 32% to EUR 9.83M (December 31, 2021: EUR 7.43M), due to the capitalization of development costs and the acquisition of the production facility. Thereby, tangible assets adjust to EUR 2.09M (previous year: EUR 0.36). Intangible assets increased to EUR 3.15M (December 31, 2021: EUR 2.49M).  Loans to companies in which an equity investment is held, which are reported under financial assets, remained unchanged. (December 31, 2021 EUR 2.040M).

Current assets increased by EUR 7.95M to EUR 13.92M (December 31, 2021: EUR 5.97M). Trade receivables decreased by EUR 0.45M compared to the previous year (December 31, 2021: EUR 2.85M). Trade payables also showed a similar development.

As of December 31, 2022, cash and cash equivalents amounted to EUR 2.55M due to bank balances, compared to EUR 1.13M as of December 31, 2021.

Current accruals amount to EUR 0.70 M as of December 31, 2022 (December 31, 2021: EUR 0.43 M). Other accruals mainly include personnel costs, such as overtime, vacation not taken and variable salary components.

Current liabilities increased by EUR 9.69M to EUR 17.16M in the financial year (December 31, 2021: EUR 2.71 M) and consists in particular of trade payables. The increase in long-term liabilities is due in particular to the new loans taken out by the parent company. Unchanged to the previous year, there are no liabilities to banks as of December 31, 2022.

The equity of LION Smart GmbH and LION Smart Production GmbH amounted to EUR 5.97M at the end of the financial year (December 31, 2021: EUR 5.59M). The equity ratio as of December 31, 2022 decreased to 25.03% compared to the balance sheet date December 31, 2021 (December 31, 2020: 41.44%).

Cash flow and financing as of December 31, 2022

Cash flow from operating activities was negative in the amount of EUR -5.87M due to the build-up of inventories in the reporting period (previous year: EUR 0.39M).

Cash flow from investing activities was negative in the fiscal year due to the construction of the production plant and in particular due to the further development of LIGHT Battery; as of December 31, 2022, it amounted to EUR -1.99M (previous year: EUR -0.47M).

No financial liabilities were repaid in 2022, while the raising of further loans had a positive impact on cash flow from financing activities. As of December 31, 2022, this amounted to EUR 9.25M (previous year: EUR 0.71M).

 Outlook for the fiscal year 2023

The companies have laid the foundations for further growth in the coming year.

With this in mind, they have issued a sales guidance of EUR 70-80M for the year 2023. This would correspond to a sales growth of 30-50% compared to 2022. The company (LSP) will produce the SE09 battery under license in 2023.

Despite the expected investments in their products or production facilities, among others, the entities expect a consolidated positive EBITDA.

The companies are financed by the parent company. The management is convinced that the course taken is a good starting point for further growth. The companies will continue to invest in products and technologies in the coming years in order to keep up the high technical level of the products and to bring them to market maturity.

The net assets, financial position and results of operations of the companies continue to develop as planned in 2022. The previous planning for 2023 onwards is therefore considered to remain accurate and reliable. 

_{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 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

Winfried Buss

Managing Director

LION E-Mobility Investor Relations

Frank Schönrock (Weber Shandwick)

Phone: +49 (0) 1737025315

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

Arne Siegner
Phone: +41 (0) 41 500 54 11
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.}