LION E-Mobility AG Generates Positive Operating Cash Flow In Q3 2024 And Makes Significant Progress With The LION LIGHT Battery

EQS-News: LION E-Mobility AG / Key word(s): 9 Month figures/Quarterly / Interim Statement
LION E-Mobility AG generates positive operating cash flow in Q3 2024 and makes significant progress with the LION LIGHT battery
12.11.2024 / 18:01 CET/CEST
The issuer is solely responsible for the content of this announcement.

LION E-Mobility AG generates positive operating cash flow in Q3 2024 and makes significant progress with the LION LIGHT battery

Zug, November 12, 2024 - LION E-Mobility AG (LION; ISIN: CH0560888270), a leading battery pack manufacturer specializing in e-mobility and energy storage solutions, today published preliminary results for the third quarter of 2024. Despite a very difficult market environment, LION was able to significantly increase sales from July to September 2024 compared to the first and second quarters, reduce EBITDA losses and achieve a positive operating cash flow.

In September 2024, the track tests of the 400-volt LION LIGHT battery with innovative immersion cooling technology were successfully completed by a German premium OEM. The subsequent high-temperature tests were also successfully completed. The 400-volt battery developed by LION Smart significantly exceeded the required test parameters and proved its performance under extreme conditions.

Due to the excellent test results, the premium OEM partner has invited LION to a tender for the final phase of pre-series development. LION will assemble high-performance battery modules for the pre-series according to the OEM's specifications. Delivery is scheduled for spring 2025.

Dr. Joachim Damasky, CEO of LION E-Mobility AG, explains : "The excellent results of our high-performance batteries in the extensive tests are very encouraging. We are confident that we will soon be able to start assembling the pre-series battery modules.”

LION generated revenue of EUR 6.4 million in the third quarter of 2024 (Q2 2024: EUR 4.8 million), an increase of 33% compared to the previous quarter. Cumulative sales for the first three quarters of the year thus amounted to EUR 12.4 million (2023: EUR 29.8 million. EBITDA improved to EUR -1.2 million in the third quarter (Q2 2024: EUR -2.1 million), which represents a reduction in losses of around 43% compared to the previous quarter. EBITDA for the first nine months amounted to EUR -6.0 million (2023: EUR 0.1 million). Operating cash flow improved significantly in the third quarter to EUR 1.6 million (Q2 2024: EUR -2.2 million). This recovery is the result of positive effects from cash management.

"The traditional battery pack business was very challenging in the first nine months of 2024, both for us and for the battery industry as a whole," explains Alessio Basteri, Chairman of the Board of Directors of LION E-Mobility AG .“All the more significant is our progress in the field of innovative technologies: The successful tests of our 400-volt LION LIGHT battery with immersion cooling technology have not only confirmed its performance under extreme conditions, but have also highlighted the enormous market potential of this technology. This advanced cooling enables outstanding performance and gives us a clear competitive advantage. We are confident that this technology will enable us to capture a significant market share and achieve sustainable growth, particularly in the premium segment.”

Outlook
On November 6, 2024, LION sold its 30 percent stake in TÜV Süd Battery Testing GmbH to its joint venture partner TÜV SÜD AG. The sale has improved LION's financial position and will have a positive impact on the company's earnings in the fourth quarter of 2024. The proceeds from the sale were primarily used to repay outstanding liabilities.

Due to the current market situation, especially in view of the current oversupply on the battery market, the management continues to expect that sales of at most €42 million will be achieved in 2024. According to current estimates, this will probably lead to a slightly negative or slightly positive EBITDA.

Despite the current market challenges, LION E-Mobility AG is optimistic about the future and expects sustainable growth in the medium term. In the mobility business, the company expects a return to market normality from the second half of 2025, particularly in Europe. Business is also expected to accelerate in the USA, where the development of the Commercial Clean Vehicle Credit could provide an additional tailwind following the US elections. In addition, demand is increasing in North America, particularly in the USA and Canada, which makes the company confident about further growth in the e-truck and e-bus segment.

About LION E-Mobility AG
LION E-Mobility AG is a manufacturer of lithium-ion battery packs. The company offers customized plug-and-play solutions for electric vehicles as well as for stationary
and industrial
applications. With a current annual production capacity of 2 GWh, LION is ideally positioned to address the growing demand for high-performance energy storage solutions.

The company operates highly automated module assembly lines at its own production facility in Germany. LION's battery packs offer the highest standards in terms of safety, quality, and reliability.

Founded in 2011, LION E-Mobility AG (ISIN: CH0560888270, WKN: A2QH 97) is listed on the stock exchanges in Munich, Frankfurt, and Hamburg.

LION E-Mobility Investor Relations
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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.

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