LION Smart GmbH announces HGB quarterly figures as of March 31, 2021
LION Smart GmbH off to a good start in fiscal year 2021
- Revenues in 1st quarter (EUR 2.6 million) in line with company’s forecast and at previous year’s level (2020: EUR 2.0 million)
- EBITDA negative at EUR 0.208 million, (2020: EUR 0.207 million) burdened by one-off expenses
- Completion of the development project planned in the short term
- Sales in 1st quarter 2021 at EUR 2.6 million (previous year: EUR 2.0 million)
- Expected negative EBITDA as of March 31, 2021 at EUR -0.208 million (previous year: EUR 0.207) due to further development expenses for the LIGHT Battery
- Operating cash flow below previous year at EUR -0.744 million (previous year: EUR -0.384 million); cash flow use for investments EUR -0.029 million (previous year: EUR -0.708 million) and improvement of financing structure (EUR 0.5 million / previous year: EUR 1.314 million)
|Preliminary figures in EUR million||Q1 2021||Q1 2020||Change YoY cumulative|
Garching near Munich, March 6, 2021 – LION Smart GmbH, a wholly owned subsidiary of LION E-Mobility AG, today published its preliminary unaudited financial results as of March 31, 2021. 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 2021. Taking into account the expected business performance in 2021, the results are in line with the forecast. As planned, a significant increase in sales volume and EBIT is expected for the 2nd and 3rd quarters of the current fiscal year.
Results of operations of LION Smart GmbH as of March 31, 2021
In the 1st quarter of 2021, sales revenues totaling EUR 2.6 million were realized. Both sales and EBIT were in line with expectations in what tends to be the weakest quarter. For the 2nd quarter, sales of EUR 11.2 million are expected if the development goes according to plan.
In the 1st quarter of 2021, no development costs were recognized as own work capitalized. As of March 31, 2021, internally generated intangible assets remained unchanged at EUR 2.094 million (December 31, 2020: EUR 2.094 million).
The change in work in progress and finished goods increased compared to December 31, 2020 (EUR 0.1 million), in particular due to the start of work on further projects in the first quarter of 2021.
Compared to the previous year (March 31, 2020), total output (sales, own work capitalized, change in inventories) increased significantly by EUR 0.676 million to now EUR 2.709 million.
The cost of materials – consisting of cost of materials and other purchased services – increased to EUR 1.986 million (previous year: EUR 1.021 million), in particular 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) was 73.33% (previous year: 50.23%).
Other purchased services increased by EUR 0.012 million to EUR 0.133 million, mainly due to the use of external services for the development project. This also includes expenses for external employees in the context of production.
Consequently, gross profit of EUR 0.723 million (previous year: EUR 1.012 million) was generated for the reporting period, which corresponds to a gross profit margin of 26.67%.
Personnel expenses increased slightly compared to the previous year. In the first quarter, LION Smart GmbH employed a total of 32 permanent staff and nine student trainees (previous year: 34 in total). The personnel deployment rate for the first quarter was 22.84%, compared with 23.41% in the same period of the previous year.
Other operating expenses increased significantly compared to the previous year, in particular due to the expansion of the business volume. Expenses in the overhead area relate in particular to legal and consulting costs (EUR 0.140 million), rental expenses (EUR 0.019 million) and insurance costs (EUR 0.050 million).
The accumulated earnings before interest and taxes (EBIT) as of March 31, 2021 amount to
EUR -0.283 million (previous year: EUR 0.181 million) due to high one-off expenses.
As in the previous quarters, the financial result of LION Smart GmbH is clearly positive. This is due on the one hand to the loans extended to TÜV Süd Battery Testing GmbH (TSBT) and the associated interest income. Interest expenses for loans drawn down totaled EUR 0.07 million in the reporting period.
In the reporting period, LION Smart GmbH generated a pre-tax result of EUR -0.275 million (previous year: EUR 0.184 million).
Net assets and financial position as of March 31, 2021
Total assets as of March 31, 2021 amount to EUR 10.144 million (December 31, 2020: EUR 11.415 million). Non-current assets account for EUR 6.934 million (December 31, 2020 EUR 6.979 million), current assets amount to EUR 3.048 million (December 31, 2020 EUR 4.352 million)
Non-current assets decreased by 0.66% to EUR 6.934 million (December 31, 2020: EUR 6.979 million). Thereby, property, plant and equipment decreased slightly by EUR 0.037 million to EUR 0.476 million (December 31, 2020: EUR 0.513 million). Intangible assets decreased slightly to EUR 2.167 million (December 31, 2020: EUR 2.175 million). Loans to companies in which an equity investment is held, which are reported under financial assets, remained unchanged. (December 31, 2020: EUR 2.250 million).
Current assets decreased by EUR 1.304 million to EUR 3.048 million (December 31, 2020: EUR 4.352 million). Trade receivables decreased by EUR 0.985 million to EUR 1.336 million (December 31, 2020: EUR 2.321 million), as a large portion was repaid as scheduled by payments from customers. As of March 31, 2021, cash and cash equivalents due to bank balances amounted to EUR 0.242 million compared to EUR 0.515 million as of December 31, 2020.
The equity of LION Smart GmbH amounted to EUR 6.316 million at the end of the reporting period (December 31, 2020: EUR 6.091 million). The equity ratio as of March 31, 2021 increased to 62.26% compared to the balance sheet date, December 31, 2020 (December 31, 2020: 53.36%). In the first quarter, LION E-Mobility AG made capital contributions of EUR 0.5 million.
Current provisions total EUR 0.917 million as of March 31, 2021. Other provisions mainly include personnel costs such as overtime, vacation not taken and variable salary components. In addition, the item also includes outstanding purchase invoices for correct accrual of EUR 0.407 million.
Trade payables amount to EUR 1.249 million as of March 31, 2021. The decrease compared to the balance sheet date (EUR 3.2 million) is due to scheduled repayments and repayment.
Other liabilities mainly comprise accruals from payroll as of March 31, 2021 for tax and social security contributions still to be paid.
Cash flow and financing as of March 31, 2021
Cash flow from operating activities remains negative, amounting to EUR -0.744 million in the reporting period (previous year: EUR -0.384 million). This is mainly due to the expansion of business and the associated outflow of liquidity. If business develops according to plan, we expect a positive cash flow from operating activities in the second and third quarters.
Due to investments in property, plant, and equipment – particularly as a result of the development project – cash flow from investing activities is negative; as of March 31, 2021, it amounted to
EUR -0.03 million (previous year: EUR -0.708 million).
Cash flow from financing activities was positive in the first quarter and amounted to EUR 0.5 million (previous year: EUR 1.314 million). The main reason for this was the cash inflow from the sole shareholder, LION E-Mobility AG, in the amount of EUR 0.5 million. There were no repayments of other financial liabilities in Q1 2021.
Outlook for the second and third quarters of 2021
LION Smart GmbH has made a very good start to the current fiscal year. For the second and third quarters, we expect planned revenues in a range of EUR 18 million to EUR 20 million and positive EBITDA and EBIT.
At the same time, we are in constructive talks with our partners and the Tier 1 supplier about the continuation of the development project up to a possible small series production beyond the year 2021.
We are also in discussions with well-known automotive manufacturers for the implementation of joint projects, particularly in the area of reducing charging times with our immersion-cooled battery solution.
The further certifications required for us in the areas of TISAX and IATF are progressing according to plan. We expect to be able to complete the associated organizational changes, update our IT landscape, and supplement or expand our processes and the associated quality improvements largely by the end of 2021.
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, particularly in the field of electrical energy storage and lithium-ion battery system technology. The company owns 100% of the German LION Smart GmbH, a developer of battery packs and battery management systems. LION Smart GmbH also holds a 30% stake in TÜV SÜD Battery Testing GmbH, a 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
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LION E-Mobility Investor Relations
Phone: +49 221 94991871 | Mobile: +49 151 58204309
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