DGAP-News: LION E-Mobility AG: LION Smart GmbH Announces HGB Figures as of December 31, 2021 (unaudited)

• LION Smart GmbH again with the highest sales in the company's history (EUR 29.609 million)
• Highest sales of the fiscal year as planned in the 4th quarter (EUR 10.856 million)
• EBITDA positive at EUR 0.483 million, cumulative quarterly result positive
• Positive cash flow in the fiscal year
• Cooperation with an OEM for the development of a modular high-voltage battery

- Further increase in sales and positive EBITDA in the fourth quarter

- Sales in fiscal year 2021 as planned at EUR 29.609 million (previous year: EUR 17.370 million)

- Expected negative EBITDA as of Dec. 31, 2021 at EUR -0.702 million (previous year: EUR -0.824 million) due to high one-off expenses as reported in previous quarters

- Operating cash flow positive and significantly above previous year, accumulated at EUR 0.387 million (previous year: EUR -0.384 million); use for investments EUR -0.486 million (previous year: EUR -0.708 million) and positive financing structure (EUR 0.710 million (previous year: EUR 1.314 million))
 

Results of operations of LION Smart GmbH as of December 31, 2021

The business performance of LION Smart GmbH in fiscal year 2021 was mainly characterized by the Integrated Business segment and the successful conclusion of the development contract with a tier 1 supplier. In addition, the EU funding project was successfully completed.

In Q4 2021, sales revenues totaling EUR 10.856 million were realized. The 4th quarter was above the sales revenues of the 3rd quarter (EUR 9.680 million), and significantly above the 1st quarter (EUR 2.609 million) and the 2nd quarter (EUR 6.463 million).

In fiscal year 2021, development costs of EUR 0.331 million were recognized as own work capitalized. As of December 31, 2021, there were internally generated intangible assets in the amount of EUR 2.424 million (previous year: EUR 2.094 million).

The change in work in progress and finished goods and work in progress increased compared to the previous year (EUR 0.189 million) due to projects that extend beyond the balance sheet date. Raw materials and supplies decreased to EUR 0.004 million (previous year: EUR 0.024 million) due to the completion of the Tier 1 project.

Compared to the previous year, total operating performance (sales, own work capitalized, change in inventories) increased significantly by EUR 12.818 million to EUR 30.084 million (previous year: EUR 17.266 million).

The cost of materials - consisting of cost of materials and other purchased services - increased to EUR 25.940 million (previous year: EUR 14.027 million), in particular due to the increased business volume and the follow-up costs from rework for the Tier 1 development project. As a result, the cost of materials ratio (calculated as the ratio of cost of materials to sales and changes in inventories) rose to 87.18% (previous year: 81.22%).

Other purchased services decreased by EUR 1.033 million to EUR 0.264 million due to the expansion of the company's own workforce. This figure also includes expenses for external employees in connection with production.

Consequently, gross profit of EUR 4.148 million (previous year: EUR 3.405 million) was generated for the reporting period, which corresponds to a gross profit margin of 13.79%.

The increase in personnel expenses compared with the previous year is due to the increase in sales activities and the expansion of development staff. On average for the year, LION Smart GmbH had a total of 34 permanent employees and nine student trainees (previous year: 27 permanent employees and 10 student trainees).

Other operating expenses are at the level of the previous year and include high expenses for legal advice and other consulting in connection with the acquisition object in the production area.

Accumulated earnings before interest and taxes (EBIT) as of December 31, 2021 amount to - EUR 1.033 million and are approximately at the level of the previous year (previous year: EUR 1.036 million) despite the high one-off expenses.

As in the previous quarters, the financial result of LION Smart GmbH is clearly positive. This is due on the one hand to the loans extended to TÜV Süd Battery Testing GmbH (TSBT) and the associated interest income. In the fiscal year, a total of EUR 0.210 million was repaid by TSBT. As of December 31, 2021, there are thus loans to TSBT in the amount of EUR 2.040 million (previous year: EUR 2.250 million).

The interest expenses result from the loan agreements with LION E-Mobility AG and the natural persons. None of these loans were repaid or further loans were taken out in the fiscal year. In 2021, interest expenses amounted to EUR 0.027 million (previous year: EUR 0.044 million) due to a correction.

In the reporting period, LION Smart GmbH generated a pre-tax result of EUR -1.004 million (previous year: EUR -1.020 million).

Net assets and financial position as of December 31, 2021

Total assets increased by 18.09% to EUR 13.480 million as of December 31, 2021 (December 31, 2020: EUR 11.415 million), mainly due to the increase in current trade receivables. This is mainly due to the significant increase in sales volume.

Non-current assets increased by 6.53% to EUR 7.435 million (December 31, 2020: EUR 6.979 million). Thereby, property, plant and equipment decreased by EUR 0.158 million to EUR 0.356 million (December 31, 2020: EUR 0.513 million) due to depreciation and amortization. Intangible assets increased slightly to EUR 2.488 million (December 31, 2020: EUR 2.175 million). Within financial assets, loans to companies with equity investments decreased by EUR 0.210 million to EUR 2.040 million (December 31, 2020: EUR 2.250 million), while the investment in TSBT remained constant (December 31, 2020: EUR 2.551 million).

Current assets increased by EUR 1.613 million to EUR 5.966 million (Dec. 31, 2020: EUR 4.352 million). Trade receivables increased significantly by EUR 0.534 million to EUR 2.854 million (December 31, 2020: EUR 2.321 million), in particular due to the increased business volume. Against this background, trade payables also increased. As of Dec. 31, 2021, cash and cash equivalents amounted to EUR 1.126 million due to bank balances, compared to EUR 0.515 million as of Dec. 31, 2020.

Current provisions amounted to EUR 0.432 million as of Dec. 31, 2021 (Dec. 31, 2020: EUR 0.567 million). Other provisions mainly include personnel costs, such as overtime, vacation not taken and variable salary components.

Current liabilities increased by EUR 2.705 million to EUR 7.461 million in the financial year (December 31, 2020: EUR 4.756 million) and consist in particular of trade payables. Non-current liabilities are at the level of the previous year. As in the previous year, there are no liabilities to banks as of December 31, 2021.

The equity of LION Smart GmbH amounted to EUR 5.587 million at the end of the financial year (December 31, 2020: EUR 6.091 million). The equity ratio as of December 31, 2021 decreased to 41.44% compared to the balance sheet date December 31, 2020 (December 31, 2020: 53.36%). In the financial year, LION E-Mobility AG made capital contributions of EUR 0.5 million (previous year: EUR 2.05 million).

Cash flow and financing as of December 31, 2021

The cash flow from operating activities improved significantly in the reporting period to
EUR 0.387 million (previous year: EUR -0.384 million). This is mainly due to the expansion of business and the associated inflow of liquidity.

As a result of investments in fixed assets - in particular due to the further development of LIGHT Battery - the cash flow from investing activities is negative; as of December 31, 2021, it amounted to EUR -0.486 million (previous year: EUR -0.708 million).

The repayment of financial liabilities amounted to EUR 0.210 million in the reporting period, while cash and cash equivalents increased by EUR 0.500 million due to capital contributions by the sole shareholder. On balance, this results in a positive cash flow from financing activities of EUR 0.710 million (previous year: EUR 1.314 million).

Outlook for the 2022 financial year

For the full year, LION Smart GmbH expects sales of approximately EUR 50-60 million and thus a significant increase compared to the fiscal year 2021. Due to the tight and partly unstable parts supply, a more precise forecast is not possible here.

Due to the very dynamic environment, possible adjustments to the forecast are conceivable. The company will respond promptly to any changes that arise and provide information as part of its mandatory ad hoc reporting.

Based on current knowledge, LION Smart GmbH again expects negative EBITDA and EBIT for the full fiscal year 2022 due to the planned investments, particularly as a result of the acquisition of the BMW battery business, as well as further expenses specifically in the area of LIGHT Battery. Changes due to the dynamics in the market are conceivable.

_{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. 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.}

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.}