EQS-News: LION Smart GmbH (LS) and LION Smart Production GmbH (LSP) release their audited financial statements for the fiscal year 2022

 PRESS RELEASE

• LION Smart GmbH (LS) and LION Smart Production GmbH (LSP) release their audited financial statements for the fiscal year 2022.
• Annual financial statements comply in all significant aspects with German regulations.
• Compared to preliminary figures YE 2022:
  • External sales confirmed at EUR 53.8M in 2022 and annual result at EUR 0.4M.
  • Capitalization of intangible assets increased by EUR 0.1M.
  • Cost of materials slightly higher by EUR 0.2M.
  • Consolidated EBITDA improved by EUR 0.2M for fiscal year 2022.

Garching near Munich, May 19, 2023 - LION Smart GmbH (LS) and LION Smart Production GmbH (LSP), fully owned subsidiaries of LION E-Mobility AG, today published their audited financial statements for the fiscal year 2022. In comparison with the preliminary figures published on March 23, 2023, a slight improvement was achieved.

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.

The auditors have confirmed that the annual financial statements comply in all significant aspects with the regulations of German commercial law concerning corporations and give a true and accurate view of the net assets and financial position of the companies as of December 31, 2022.

The audited financial statements of the German subsidiaries of LION E-Mobility AG will be available in German on the Company's website.

Consolidated key figures for the fiscal year 2022

Revenues from the sale of products and services were in line with expectations in fiscal year 2022 at EUR 61.08M, including EUR 7.32M Intercompany sales (previous year: EUR 29.61M). The external sales targets set for the year 2022 were therefore achieved. Compared to the previous year, this results in an external sales growth of approx. 81.56%.

Development costs, in particular for the ongoing development of the "LIGHT Battery", were capitalized at EUR 0.76M in 2022 (previous year: EUR 0.33M).

Compared to the previous year, total operating performance (sales, own work capitalized, changes in inventories) increased significantly by EUR 24.1M to EUR 54.2M (previous year: EUR 30.1M).

The cost of materials - consisting of cost of raw materials, finished goods and other purchased services - increased to EUR 46.67M (previous year: EUR 25.94M), in particular due to the higher business volume. However, the cost of materials ratio of 87,28% remained almost unchanged compared to last years 87.18% (calculated from the ratio of cost of materials to sales and changes in inventories).

Hence, a consolidated gross profit of EUR 7.56M (previous year: EUR 4.14M) was generated for the reporting period, which corresponds to a gross profit margin of 13,94% (previous year: 13.77%).

The increase in personnel expenses compared with the previous year was mainly due to the expansion in sales activities, new hires in the R&D department and LION Smart Production GmbH. On average for the year, LION Smart GmbH had a total of 44 permanent employees and eight student trainees. Due to the increase in the number of employees, personnel expenses rose to EUR 3.87M (previous year: EUR 3.02M). 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 2.19M to EUR 3.58M due to the expansion of production in Hildburghausen.

In 2022, higher gross profit was achieved compared to 2021 due to increased sales. Therefore, consolidated earnings before interest and taxes (EBIT), amount to EUR 0.50M and therefore exceeded expectations at the beginning of the year (previous year:
EUR -1.03M).

The consolidated financial result of LION Smart GmbH and LION Smart Production GmbH is negative, mainly due to new loans received from the parent company and the associated interest expenses of EUR 0.10M. 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).

LION Smart GmbH and LION Smart Production GmbH generated a consolidated pre-tax result of EUR 0.46M 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 23.93M as of December 31, 2022 (December 31, 2021: EUR 13.48M), mainly due to the increase in finished goods and work in progress for the build-up of an own warehouse.

Fixed assets increased by 36% to EUR 10.10M (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 2.22M (previous year: EUR 0.36). Intangible assets increased to EUR 3.28M (December 31, 2021: EUR 2.49M).  Loans to companies in which an equity investment is held, remained unchanged. (December 31, 2021, EUR 2.040M).

Current assets increased by EUR 7.75M to EUR 13.71M (December 31, 2021: EUR 5.97M). Trade receivables decreased by EUR 0.50M compared to the previous year (December 31, 2021: EUR 2.85M).

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.The increase results from a positive cash flow in 2022.

Current accruals amount to EUR 0.74M as of December 31, 2022 (December 31, 2021: EUR 0.43 M). Other accruals mainly relate to personnel items.

In the same period, liabilities increased from EUR 7.46M in 2021 to EUR 17.16M in 2022. This is mainly due to the increase in liabilities to affiliated companies (EUR 11.13M; previous year: EUR 1.05M) as a result of additional loans of EUR 9.25M granted from LION E-Mobility AG and the increase in other liabilities (EUR 1.40M; previous year: EUR 0.38M) due to VAT issues.

Cash flow and financing as of December 31, 2022

The companies generated a positive cash flow of EUR 1.42M in 2022 (previous year: EUR 0.61M).

Cash flow from operating activities was negative in the amount of EUR -5.73M 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 -2.12M (previous year: EUR -0.49M).

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 9.28M (previous year: EUR 0.71M).

The companies have no liabilities to banks as of December 31, 2022. They are financed entirely from their own funds and contributions from shareholders, as well as from shareholder loans.

General statement on the business performance

The companies were able to meet the sales expectations set in the previous year for fiscal year 2022. The EBIT expected for fiscal year 2022 was also exceeded.

The Management is satisfied with the operational business performance in 2022 and expects a significant improvement in the international market presence, an expansion of market shares and thus an increase in capacity utilization for 2023 and the following years.

_{^{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 & 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

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.}}