DGAP-News: LION E-Mobility AG: LION Smart GmbH announces HGB figures (unaudited) as of June 30, 2021

Press release - Figures as of 30.06.2021 according to HGB - gross accounting, preliminary and unaudited
 

• LION SMART GMBH reports significant increase in sales revenue (+40.6 % to €9.072 million; gross accounting) and total output (+42.9 %) compared to the previous year
• Successful Completion of development contract with Tier 1 supplier.
• EBITDA (€-884 thousand) and EBIT (€-1,049 thousand) negative due to one-time expenses - see below (approx. € 405 thousand). Due to continued investment in rapid expansion of our business.
• Internal further development of the LIGHT Battery is progressing rapidly- (LION Smart LIGHT Battery Tech Talk - YouTube).
• Possible new development project with tier 1 supplier not agreed yet.
• High due diligence expenses in connection with the acquisition of technology and production licences from BMW AG with the aim of Lion becoming a battery manufacturer. Agreement with BMW AG is hopefully expected in the course of the third quarter 2021, plus further investment in Sales and Marketing.
• LION Smart in talks with OEM's and other companies regarding development projects in the field of immersion cooling applications.
• Better second half of 2021 expected - but some rising procurement prices and Corona effects linger.

- Revenues of €9.072 million (gross) compared to €6.453 million (gross) in the same period of the previous year, dominated by revenues in the Integration Business area
- EBIT and EBITDA burdened by one-off expenses around customer project Tier 1 Supplier (€0.158 million) as well as in the area of certifications (TISAX and IATF) €0.02 million and high due diligence expenses (€0.113 million)
- Operating cash flow negative at €-0.615 million (31.12.2020: €-0.384 million)
 

Preliminary figures in € million	Q2 2021	Q2 2020	Q1-Q2 2021 cumulative	Q1-Q2 2020 cumulative	Change YoY cumulative
Revenues/Sales	6.463	4.416	9.072	6.449	+2.623
Total Performance	6.514	4.416	9.223	6.449	+2.774
EBITDA	-0.677	0.083	-0.884	0.290	- 1.174
Quarterly results	-0.760	0.041	-1.035	0.231	-1.266

Garching near Munich 5th August 2021 LION Smart GmbH, a wholly owned subsidiary of LION E-Mobility AG, today published its preliminary unaudited financial results for the six months ended 30 June 2021 (half-year report). The business of the innovative supplier of lithium-ion battery systems and integrated battery solutions showed a strong year on year growth in sales with a broadening of the customer base and the successful completion of the of the development project with a Tier 1 supplier and the further development of the LIGHT Battery. In addition further investment was made towards the possible acquisition of battery production from BMW as announced previously - although this causes a negative contribution in 1H we feel confident these investments and costs will take us to a new level going forward.

Results of operations of LION Smart GmbH as of 30 June 2021

In the first half of 2021, revenue of € 9.072 million (gross) was generated, with the second quarter accounting for total revenue of € 6.463 million (gross).

The higher cost of materials and the material usage ratio are mainly due to follow-up costs resulting from rework for the Tier 1 development project.

For this reason, the gross profit is also significantly lower than in the same period of the previous year. Personnel expenses increased significantly compared to the previous year - effects of the increase in personnel in all key areas. As of 30 June 2021, the company employs a total of 34 permanent and freelance employees as well as 10 working students.

The higher depreciation (+ € 77 thousand) compared to the previous year results from the high investments in tangible assets in the past financial year and those of the current year.

Other operating expenses are lower than in the previous year and include high expenses for legal advice and other consulting in connection with the acquisition object in the production area. Without these one-time expenses, the EBIT would have been significantly better.

The special effects and non-recurring expenses of €405 thousand largely relate to costs for the relocation (€0.027 million), rework modules Tier 1 development project (€0.158 million), costs for due diligence in connection with technology and production licenses (€0.113 million), and external expenses for certifications in accordance with TISAX and IATF 16949 (€0.02 million).

The financial result continues to be positive (+ €14 thousand) and is due to the interest income from the loans granted to our associated company TSBT (TÜV SÜD Battery Testing).
Net Assets and Financial Position as of 30.06.2021

Net Assets and Financial Position as of 30 June 2021

Total assets increased by 16.41% to €13.289 million as at 30.06.2021 (30.06.2020: €11.415 million), mainly due to the increase in current trade receivables. This is mainly due to the significant increase in sales and business volume.

Non-current assets correspond to the level of the previous year, additions to intangible assets and property, plant and equipment are offset by corresponding depreciation. Financial assets, which represent our investment in TÜV SÜD Battery Testing, remained unchanged from the previous year.

Current assets increased by €1.906 million to €5.748 million (30 June 2020: €3.842 million). Trade receivables increased significantly by €1.225 million to €3.546 million (30 June 2020: €2.321 million), in particular due to the increased business volume. Against this background, trade payables also increased. Cash and cash equivalents amounted to €0.304 million as at 30 June 2021 compared to €0.515 million as at 31 December 2020 due to bank balances.

Current provisions and liabilities as at 30.06.2021 are above the level of the previous year due to trade payables not yet settled as at the half-year reporting date (30.06.2021).  The other provisions mainly include personnel costs such as overtime, holiday not taken and variable salary components.

The equity of LION Smart GmbH as at 30 June 2021 amounts to €5.556 million (30 June 2021: €6.091 million). The equity ratio as at 30 June 2021 fell year-on-year to 41.81% (30 June 2020: 53.36%). In the current financial year, LION E-Mobility AG made a capital contribution of €0.5 million.

Cash flow and financing as of 30 June 2021

Cash flow from operating activities deteriorated in the reporting period to €-0.615 million (previous year: €-0.384 million). This is mainly due to the higher cost of materials and one-off expenses.

Due to the significantly lower investments in fixed assets, the cash flow from investing activities is only slightly negative; it amounts to €-0.095 million as of 30 June 2021 (previous year: €-0.708 million).

The capital contributions of the shareholder in the amount of €0.5 million are significantly below those of the previous year and, correspondingly, the cash inflow in the financial area.

Overall, changes in cash and cash equivalents between 31 December 2020 and 30 June 2021 totalled €0.211 million.

Outlook for the second half of 2021

We expect significantly higher revenue and improved gross profit for H2 2021, especially in the Integration Business. We expect further new customers for our offered electrification solutions in the second half of 2021, but probably only during Q4 2021.

At the same time, we are in talks with potential customers in our battery management system and the LIGHT Battery. We are confident here that we will be able to win new development orders and thus significantly increase revenue for 2021 compared to the previous year.

For the financial year, we expect total revenues of approx. €28-30 million (gross accounting) and approx. €7-8 million (net). This does not include the expected revenues in the areas of Integration Business, Battery Management System and LIGHT Battery.

However, given the high one-off expenses in the second half of the year for the certification of LION Smart GmbH in the automotive sector and the expected expenses for the possible acquisition of technology and production licences for the establishment of our own battery production, we do not expect a positive annual result for 2021.

Responsible for the press release: Board of Directors LION E-Mobility AG

Contact LION Smart GmbH
Thomas Hetmann
Managing Director | Board Member


LION E-Mobility Investor Contact

Frank Schönrock (Weber Shandwick)
Phone: +49 (0) 1737025315
E-Mail: ir@lionemobility.com

Arne Siegner
Phone: +41 (0) 41 500 54 11
E-mail: ir@lionemobility.com


Disclaimer:
Statements that express or imply projections, expectations, beliefs, plans, objectives and assumptions regarding future events or performance are not historical facts and may therefore be forward-looking statements. Forward-looking statements are based on expectations, estimates and plans at the time they are made and therefore involve a number of risks and uncertainties that could cause actual results or events to differ materially from those currently anticipated. LION E-Mobility AG does not undertake any obligation to update the forward-looking statements in this press release.