Shareholder Letter Q3 2022

Dear Lilium shareholders,

We are excited to share with you our latest key achievements:

  1. First commercial contract with pre-delivery deposits
    • eVolare secures deliveries of 10 aircraft, with option to purchase additional 10
    • eVolare to serve the Greater London area
    • eVolare to pay pre-delivery payment to Lilium to secure aircraft delivery slots1
    • Coincides with the formal launch of the Lilium Pioneer Edition
  3. First major commercial agreement in the Middle East with SAUDIA
    • SAUDIA will have option to purchase up to 100 Lilium Jets and establish eVTOL network in Saudi Arabia
    • Total order pipeline of 603 aircraft, funneling to binding contracts in 2023
  5. Successful fundraising completed on Nov 22, 2022
    • Capital raise of $119 million
    • Investment from existing shareholders, new investors, and strategic partners
  7. Significant progress towards Type Certification
    • ~80% of certification plans now submitted to EASA - up from 38% in Q2
    • 3rd Design Organization Approval (DOA) audit set for December 2022
  9. Flight test campaign reinforces aircraft capabilities
    • Flight tests continue including ground effects, downwash measurements and further high-speed testing (120 kts)
    • 2nd technology demonstrator aircraft ready to join test campaign in Q1 2023

1 Payment to be made in early 2023.

Business Update | Q3 2022

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Commercial traction

In our last shareholder letter, we outlined our commercial strategy, in which we focus in the first phase on the premium private and business aviation segment, before addressing in a second phase mass-market demand for scheduled regional services.

To support the first phase, the Lilium Pioneer Edition Jet was launched to address sales to private individuals. This limited edition comes with a compelling service, support, and training package, as well as customizable options for the cabin configuration and exclusive fabrics and materials. The Lilium Pioneer Edition is limited to a total of 50 aircraft, all of which we expect to sell by the end of 2023, with pre-delivery payments of at least 50% of the purchase price prior to delivery.

In conjunction with the launch of the Pioneer Edition, Lilium has signed a binding contract with eVolare, a subsidiary of Volare Aviation, one of the United Kingdom's largest helicopter and private jet operators. With its base in Oxford, UK, eVolare opens access to prime locations around the UK, including­ London. This partnership includes a firm commitment for ten Lilium Pioneer Edition Jets, including pre-delivery payment, with an option to purchase an additional ten.

→ WATCH - Dustin Dryden, Chairman and founder Volare Aviation

Business Update | Q3 2022

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In October, Lilium announced that Saudi Arabia's national carrier SAUDIA had agreed its intent to purchase up to 100 Lilium Jets and to deploy a high-speed eVTOL network in the kingdom. We believe that this partnership is the first of its kind in the Middle East and aligns with Lilium's premium launch positioning. As part of the partnership, SAUDIA intends to support Lilium with local regulatory approvals.

Thanks to its ducted-jet architecture, its spacious cabin, its scalability and its 10-9 EASA safety standard2 , the Lilium Jet is well suited to the demands of our customers; it can address different mission profiles, weather ­environments, and all aviation segments.

These two agreements bring the total order pipeline to 603 aircraft. Lilium will continue to convert further of its existing commercial MoUs into binding aircraft purchase agreements in 2023.

Lilium views pre-delivery payments as an integral component of our future capital structure.

2 EASA certification requires a 10-9 safety level (less than one catastrophic failure in a billion flight hours).

Business Update | Q3 2022

4

Lilium successfully completes fundraising

This November, we announced the successful closing of a $119 million capital raise from existing shareholders, new investors, and strategic partners. Participants included Aciturri and Honeywell as well as LGT and its affiliated impact investor Lightrock, Tencent and B. Riley Securities. Lilium's new CEO, Klaus Roewe, as well as three board members, Barry Engle, David Wallerstein and Niklas Zennström, also participated in the capital raise.

We are pleased to have such a high-quality group of supporters in a challenging macro environment. These proceeds will strengthen our balance sheet and allow us to proceed with the assembly and testing of our Type-conforming aircraft, as well as reaching final agreement with EASA on all our Means of Compliance.

As we progress on our development, we are in active discussions to secure additional non-dilutive funding sources to finance our operations until Type Certification of the Lilium Jet. These include grants and subsidies from governmental authorities, as well as pre-delivery payments discussed earlier in this letter.

Additionally, we terminated the equity-line-of-credit (ELOC) facility in November. Overall, Lilium received proceeds of approximately $12.6 million from the ELOC.

Lilium Board Members

Klaus Roewe

Barry Engle

David Wallerstein

Niklas Zennström

Q3 cash spend in line with budget

Our total cash spend was €69 million in Q3. The increase in cash spend compared to the previous quarter (Q2 2022: €63 million) was mainly driven by the ramp-up in one-time supplier payments, which included the e-motor development and battery industrialization (approx. €7 million). This is in line with our target budget of €250 million3 in 2022.

Our liquidity as of the end of Q3 - and prior to the recently completed investment round - stood at €160 million4 (end of Q2: €229 million).

Looking ahead, given the macro environment, inflationary effects and market uncertainties, we have initiated significant cost conservation measures at Lilium. We are currently finalizing the budget for 2023 and expect it to be consistent with our 2022 budget.

3 Excluding fundraising and related fees. 4 Consists of cash and cash equivalents and other financial assets.

Business Update | Q3 2022

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Lilium NV published this content on 05 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 December 2022 21:21:08 UTC.