LION Smart GmbH Preliminary Annual Figures 2020
LION Smart GmbH with the highest turnover in the company’s history (EUR 17.370 million).
Turnover in the 4th quarter (EUR 5.242 million) lower than in the previous quarter due to Corona, but within the forecast range.
EBITDA negative at EUR -0.824 million, cumulative quarterly result negative and burdened by one-time expenses.
Successful implementation of the development contract – completion planned for March/April 2021.
Good start into the 2021 financial year with EUR 1.0 million turnover and positive EBIT in January 2021.
- Slight decline in revenue and negative EBITDA in the fourth quarter – high one-off expenses in connection with development project and cost reimbursements for LION E-Mobility Inc.
- Revenue in 2020 financial year at EUR 17.370 million (previous year: EUR 1.595 million)
- Expected negative EBITDA as of 31.12.2020 at EUR -0.824 million (previous year: EUR -0.828 million) due to high one-off expenses in connection with the development project and cost reimbursements for LION E-Mobility Inc. confirmed.
- Operating cash flow significantly above the previous year, accumulated at EUR -0.401 million (previous year: EUR -1.024 million); cash flow used for investments EUR -0.692 million (previous year: EUR -0.431 million) and improvement of the financing structure (EUR -0.286 million (previous year: EUR -0.402 million).
|Preliminary figures in EUR million||Q4 2020||Q4 2019||Q1-Q4 2020 cumulative||Q1-Q4 2019 cumulative||Change YoY cumulative|
Garching near Munich, 9 March 2021 – LION Smart GmbH, a wholly owned subsidiary of LION
E-Mobility AG, today published its preliminary unaudited financial results for the year ended 31 December 2020. The business of the innovative supplier of lithium-ion battery systems and integrative battery solutions continued to develop positively in the 2020 financial year. In addition to a significant increase in revenue and a broadening of the customer base, the further development of the Light Battery with a Tier 1 supplier was a key feature of the past financial year.
Results of operations of LION Smart GmbH as at 31 December 2020
LION Smart GmbH’s business performance in the 2020 financial year was dominated by the Integrated Business segment and the development contract with a Tier 1 supplier. Significant growth was achieved in all areas compared to the previous year.
In the 4th quarter of 2020, revenue totaling EUR 5.242 million was recognized. The 4th quarter was slightly down, especially due to Corona, and was slightly below the 3rd quarter revenue (EUR 5.679 million), but significantly above the 1st quarter (EUR 2.033 million) and the 2nd quarter (EUR 4.416 million). Revenue growth remains intact and sustainable.
In the 2020 financial year, development costs of EUR 0.156 million were recognized as own work capitalized. As at 31 December 2020, internally generated intangible assets amounted to EUR 2.077 million (previous year: EUR 1.921 million).
The change in work in progress and finished goods and work in progress decreased compared to the previous year (EUR -0.065 million), in particular due to the completion of projects in the current financial year. In contrast to the previous year, the item also includes work in progress of EUR 0.047 million (previous year EUR 0 million) in connection with the development contract.
Compared to the previous year, the total operating performance (sales, own work capitalized, change in inventories) increased significantly by EUR 14.974 million to now EUR 17.461 million (previous year: EUR 2.487 million).
The cost of materials – consisting of the cost of materials and other purchased services – increased by increased to EUR 14.056 million (previous year: EUR 0.651 million), mainly due to the development project. As a result, the cost of materials ratio (calculated from the ratio of cost of materials to sales and changes in inventories) rose to 80.50 % (previous year: 26.18 %).
Other purchased services increased by EUR 1.081 million to EUR 1.297 million, mainly due to the use of external services for the development project. This also includes the expenses for external employees in the context of production.
Consequently, gross profit of EUR 3.405 million (previous year: EUR 1.836 million) was generated for the reporting period, which corresponds to a gross profit margin of 19.50 %.
The increase in personnel expenses compared to the previous year is to be seen in particular against the background of the significantly increased business volume. LION Smart GmbH had an average of 27 permanent employees and 10 student trainees during the year (previous year: 27 in total).
Other operating expenses increased significantly compared to the previous year, in particular due to the expansion of the business volume. One-off costs of EUR 0.175 million and ongoing cost transfers for LION E-Mobility Inc. of EUR 0.147 million for 2020 and EUR 0.044 million for 2019 had a negative impact on the result of LION Smart GmbH, while the result of LION E-Mobility Inc. was correspondingly relieved.
The cumulative earnings before interest and taxes (EBIT) as at 31 December 2020 amount to
EUR -1.036 million and are roughly on a par with the previous year (previous year: EUR 0.917 million) despite the high one-off expenses.
As in the previous quarters, the financial result of LION Smart GmbH is clearly positive. This is partly due to the loans granted to TÜV Süd Battery Testing GmbH (TSBT) and the associated interest income. In the fiscal year, a total of EUR 0.6 million in additional loans were extended, and repayments by TSBT were made as scheduled in the amount of EUR 0.150 million. As of 31.12.2020, there were thus loans to TSBT in the amount of EUR 2.250 million (previous year: EUR 1.800 million).
Interest expenses were reduced by repayments of the loan to Commerzbank AG and repayments of other financial liabilities as well as the repayment of current liabilities to LION E-Mobility AG.
In the reporting period, LION Smart GmbH generated a profit before tax of EUR -1.020 million (previous year: EUR -0.943 million).
Assets and financial position as at 31 December 2020
Total assets increased by 43.96 % to EUR 11.306 million as at 31 December 20210 (31 December 2019: EUR 7.853 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 14.21 % to EUR 7.473 million (31 December 2019: EUR 6.543 million). Within this, property, plant and equipment increased by EUR 0.322 million to EUR 0.513 million (31 December 2019: EUR 0.191 million), mainly due to new investments. Intangible assets increased slightly to EUR 2.158 million (31 December 2019: EUR 2.002 million). Within financial assets, loans to companies with participating interests increased by EUR 0.450 million to EUR 2.25 million (31 December 2019: EUR 1.80 million), while the investment in TSBT remained constant (31 December 2019: EUR 2.551 million).
Current assets increased by EUR 2.489 million to EUR 3.749 million (31 December 2019: EUR 1.260 million). Trade receivables increased significantly by EUR 2.097 million to EUR 2.365 million (31 December 2019: EUR 0.268 million), in particular due to the increased business volume. Against this background, trade payables also increased. As at 31 December 2020, cash and cash equivalents amounted to EUR 0.515 million compared to EUR 0.293 million as at 31 December 2019 due to bank balances.
Current provisions and liabilities are at the previous year’s level as at 31.12.2020. Other provisions mainly include personnel costs such as overtime, unused holiday and variable salary components. As at 31.12.2020, there are no more liabilities to banks (31.12.2019: EUR 0.125 million).
The equity of LION Smart GmbH amounted to EUR 6.123 million at the end of the financial year (31 December 2019: EUR 5.093 million). The equity ratio as at 31 December 2020 decreased to 54.16 % compared to the balance sheet date 31 December 2019 (31 December 2019: 64.85 %). During the financial year, LION E-Mobility AG made capital contributions of EUR 2.05 million (previous year: EUR 3.610 million).
Cash flow and financing as at 31 December 2020
Cash flow from operating activities improved in the reporting period to EUR -0.401 million (previous year: EUR -1.024 million). This is mainly due to the expansion of business and the associated inflow of liquidity.
As a result of investments in fixed assets – especially due to the development project – the cash flow from investing activities is negative; as of 31.12.2020 it amounted to EUR -0.692 million (previous year: EUR -0.432 million).
The repayment of financial liabilities amounted to EUR 0.736 million in the reporting period, while cash and cash equivalents increased by EUR 0.221 million due to capital contributions from the sole shareholder. On balance, this results in a positive cash flow from financing activities of EUR 1.314 million (previous year: EUR 1,407 million).
Outlook for the 2021 financial year
LION Smart GmbH has made a very good start to the current financial year. In January 2021, sales revenues of just 1.0 million were generated with a positive EBIT margin.
For the year as a whole, LION Smart GmbH expects a turnover of approx. EUR 30 million and thus a significant increase compared to the 2020 financial year. Positive deviations in the expected business volume may arise due to promising discussions with customers but also upcoming new customer projects. Due to the very dynamic environment, possible adjustments to the forecast are conceivable. The company will react promptly to any changes that arise and provide information as part of the mandatory ad hoc reporting.
Based on the current state of knowledge, LION Smart GmbH expects a slightly positive EBITDA and EBIT for the entire 2021 financial year. 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.
Responsible for the press release: BoD LION E- Mobility AG
Contact LION Smart GmbH
Managing Director | Board Member
LION E-Mobility Investor Relations
Phone: +49 221 94991871 | Mobile: +49 151 58204309
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.