LION E-Mobility AG: LION Smart GmbH reports a good start to the 2022 financial year

LION Smart GmbH reports a good start to the 2022 financial year

- Sales in Q1 (EUR 13.2 million) in line with expectations and significantly above the level of the previous year (2021: EUR 2.6 million)

- EBITDA negative at EUR 0.028 million (2021: EUR 0.208 million)

- Sales in Q1 2022 at EUR 13.201 million (previous year: EUR 2.609 million)
- Expected slightly negative EBITDA as of March 31, 2022 at EUR -0.028 million (previous year: EUR -0.208 million)
- Operating cash flow above previous year at EUR 0.750 million (previous year: EUR 0.387 million); cash flow utilization for investments at EUR -0.290 million (previous year: EUR -0.486 million) and financing structure improved (EUR 0.550 million / previous year: EUR 0.710 million)

Garching near Munich, May 5, 2022 - LION Smart GmbH, a wholly owned subsidiary of LION E-Mobility AG, today published its preliminary, unaudited financial figures as of March 31, 2022. The business of the innovative supplier of lithium-ion battery systems and integrative battery solutions has continued to develop positively as it enters fiscal year 2022. Taking into account the expected business development for 2022, the result is in line with the forecast.

Results of operations of LION Smart GmbH as of March 31, 2022

In the 1st quarter of 2022, sales totaling EUR 13.2 million were realized. Both sales and EBIT were in line with expectations in the 1st quarter.

The change in work in progress and finished goods and work in progress decreased by EUR 0.107 million compared to December 31, 2021, mainly due to the completion of projects in the first quarter of 2022.

Compared to the previous year (March 31, 2021), total operating performance (sales, own work capitalized, changes in inventories) increased significantly by EUR 10.384 million to EUR 13.093 million.

The cost of materials - comprising the cost of materials and other purchased services - increased to EUR 11.839 million (previous year: EUR 1.986 million), due in particular to the higher volume of business. As a result, the cost of materials ratio (calculated from the ratio of cost of materials to sales and changes in inventories) was 90.42% (previous year: 73.33%).

Consequently, gross profit of EUR 1.254 million (previous year: EUR 0.723 million) was generated for the reporting period, corresponding to a gross profit margin of 9.58%.

Personnel expenses increased compared to the previous year. In the first quarter, LION Smart GmbH employed a total of 44 permanent staff and 6 student trainees (previous year: 41 in total). The personnel deployment ratio for the first quarter was 6.63%, compared with 22.84% in the same period of the previous year.

Other operating expenses are at the level of the previous year. The expenses in the overhead area relate in particular to legal and consulting costs (EUR 0.085 million), personnel recruitment costs (EUR 0.047 million) and financial statement and audit costs (EUR 0.025 million).

Accumulated earnings before interest and taxes (EBIT) as of March 31, 2022, amount to EUR -0.059 million (previous year: EUR -0.283 million) due to the high cost of materials.

The financial result of LION Smart GmbH is negative. Interest expenses for loans drawn down in the reporting period totaled EUR 0.020 million. In the 1st quarter, loans to natural persons in the amount of EUR 0.273 million were repaid.
Interest income from the loan granted to TÜV Süd Battery Testing GmbH (TSBT) amounted to EUR 0.013 million in the 1st quarter.

In the period under review, LION Smart GmbH generated earnings before taxes of EUR -0.066 million (previous year: EUR -0.275 million).

Net assets and financial position as of March 31, 2022

Total assets amount to EUR 20.006 million as of March 31, 2022 (December 31, 2021: EUR 13.480 million). Non-current assets account for EUR 7.421 million (December 31, 2021: EUR 7.435 million), while current assets amount to EUR 12.347 million (December 31, 2021:
EUR 4.840 million)

In the first quarter of 2022, no development costs were recognized as own work capitalized. As of March 31, 2022, internally generated intangible assets remained unchanged at EUR 2.425 million (December 31, 2021: EUR 2.425 million).

Non-current assets decreased slightly to EUR 7.421 million (December 31, 2021: EUR 7.434 million). Property, plant and equipment decreased slightly by EUR 0.017 million to EUR 0.339 million (December 31, 2021: EUR 0.356 million). Intangible assets increased slightly to EUR 2.492 million (December 31, 2021: EUR 2.488 million). Loans to companies in which an equity investment is held, which are reported under financial assets, remained unchanged. (December 31, 2021: EUR 2.040 million).

Current assets increased by EUR 7.255 million to EUR 12.095 million (December 31, 2021: EUR 4.840 million). Trade receivables increased significantly by EUR 2.706 million to EUR 5.560 million (December 31, 2021: EUR 2.854 million), in particular due to the increased business volume. Against this background, trade payables also increased. As of March 31, 2022, cash and cash equivalents amounted to EUR 2.135 million due to bank balances, compared to EUR 1.126 million as of December 31, 2021.

The equity of LION Smart GmbH amounted to EUR 6.071 million at the end of the reporting period (December 31, 2021: EUR 5.587 million). The equity ratio as of March 31, 2022 decreased to 30.34% compared to the balance sheet date, December 31, 2021 (December 31, 2021: 41.44%). In the first quarter, LION E-Mobility AG made capital contributions of EUR 0.55 million.

Current provisions total EUR 0.348 million as of March 31, 2022. Other provisions mainly include personnel costs such as overtime, vacation not taken and variable salary components.

Current liabilities increased by EUR 7.785 million to EUR 12.541 million in the financial year (December 31, 2021: EUR 4.756 million) and consist in particular of trade payables. There are no non-current liabilities as of the first quarter of 2022.

Cash flow and financing as of March 31, 2022

Cash flow from operating activities improved significantly; it amounted to EUR 0.750 million in the reporting period (previous year: EUR 0.387 million). Due to investments in property, plant and equipment, cash flow from investing activities is slightly negative; as of March 31, 2022, it amounted to EUR -0.290 million (previous year:
EUR -0.486 million). This is largely repayments of other financial liabilities in Q1 2022 in the amount of EUR 0.273 million.

Cash flow from financing activities was positive in the first quarter and amounted to EUR 0.550 million (previous year: EUR 0.710 million). The main reason for this was the cash inflow from the sole shareholder, LION E-Mobility AG, in the amount of EUR 0.55 million.

Outlook for the 2022 financial year

LION Smart GmbH has made a very good start to the current fiscal year. The stated forecast of EUR 50-60 million for the fiscal year 2022 can be confirmed at the present time.

_{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. and 100% of the German LION Smart Production GmbH.}

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.}