Lilium N : FY22 Shareholder Letter

Shareholder Letter FY 2022

Dear Lilium shareholders,

Over the past year, we have successfully achieved important milestones in the development of our revolutionary Lilium Jet. These accomplishments reinforce our unwavering conviction of being able to deliver to the market a truly differentiated, jet engine-powered eVTOL aircraft with longer range that is more efficient, quieter, and safer than other eVTOLs under development. Several of our most notable 2022 accomplishments include:

Completed preliminary design review (PDR) for our Lilium Jet

Advanced sourcing and manufacturing for assembly of type-conforming aircraft Successfully flew our demonstrator aircraft through full transition into wing-borne flight

Announced and began to take orders for the Lilium Pioneer Edition, a limited-edition exclusive version of the Lilium Jet

Secured first commercial contract with pre-delivery deposits (PDPs)

Our focus continues to be on developing an aircraft that will set the standard for performance, comfort, and style - a sustainable battery-powered jet that will address the demands of the most discerning customers in both the premium and the commercial aviation segment of the eVTOL market. At Lilium, we are creating an aircraft specifically designed to enable regional air mobility, flying longer distances and linking cities, in contrast to shorter distance local or urban air mobility. Over these longer distances, we are able to realize greater time savings and more favorable unit economics.

We are confident that our highly engineered aircraft, utilizing advancements in proven jet technology and relying on our ecosystem of established Tier 1 supplier partners, will be certified by EASA applying the highest aero-space safety standards globally.

We expect 2023 to be another transformational year for Lilium. As we build on the successes of 2022, our leadership team, with its deep expertise in certifying aircraft to EASA and FAA standards, plans to complete and freeze the final design of our type-conforming aircraft. We are also in active discussions to secure additional funding and are very encouraged by the interest from potential investors and partners.

Recent accomplishments

• 1 Flight test success

  • - Last year, Phoenix completed the world's first full transition from hover to wing-borne flight of an eVTOL jet

  • - Earlier this month, we achieved the Lilium Jet's cruise speed of 250 km/h (155 mph)

  • - We continue an active flight test campaign expanding Phoenix's operational envelope

  • - Flight test results provide us confidence to start production of the type-conforming aircraft later this year

• 2 Continued commercial momentum

  • - Total pipeline grown to 640 aircraft

  • - First pre-delivery payments (PDPs) received from eVolare, reiterating confidence in Lilium Jet

  • - Actively advancing binding contracts and additional PDPs, which will be used to help fund the development and certification of the Lilium Jet

• 3 Battery advancements in performance and cycle life

  • - Game-changing performance and cycle life confirmed by third-party independent laboratory

  • - Cell production line at Customcells aligning towards rigorous aerospace standards, with cells being delivered to Lilium

  • - Battery pack assembly building nearing completion

• 4 EASA certification targets in sight

  • - 100% of aircraft airworthiness Certification Plans submitted to EASA (up from approximately 80% in December 2022)

  • - On track for final agreement of certification program (including all means of compliance) in the second half of 2023

  • - 3rd EASA Design Organization Approval (DOA) audit successfully completed; final audit on track for H1-2023

• 5 Key supply chain partners ramping up

  • - Sourcing for approximately 78% of projected aircraft bill of material has been selected or contracted

  • - Rigorous testing of high-performance e-motors ongoing

  • - Layup molds being built by Aciturri for type-conforming composite fuselage

  • - Collins Aerospace and GKN Aerospace have joined the Lilium Jet program

• 6 Full year cash spend on target, fundraising efforts

  • - Year-end 2022 liquidity: €206 million; active and constructive discussions on follow-up funding in progress

  • - Cost savings implemented to improve efficiencies, but spending remains on track to hold program timing

  • - Lilium selected for EU research program with grant award

Flight test success

Earlier this month, our Phoenix demonstrator aircraft flew at the anticipated cruise speed of our type-conforming Lilium Jet (136 kt / 250 km/h).

→ WATCH THE TEST FLIGHT

As with previous maneuvers, the aircraft executed the flight test perfectly and precisely as predicted by our computer-aided flight models. The suc-cess of our demonstrator flights gives us confidence in our flight physics and the performance of our type-conforming aircraft. As a result, we are presently able to provide performance guarantees to customers and commit to world-class operating costs. We project that operators will be able to offer customers a price of $2 (two dollars) per passenger kilometer as part of a profitable service using the Lilium Jet. We believe this performance and these economics will validate our differentiated approach.

We have added a second Phoenix demonstrator aircraft to provide addi-tional testing capacity in the months ahead, further verifying our flight modelling before start of production of the type-conforming aircraft later this year and first manned flight of the aircraft, planned for the second half of 2024.

Flight at 250 km/h

PROJECTED CRUISE SPEED OF THE LILIUM JET ACHIEVED DURING TEST FLIGHT

Continued commercial momentum
First
We are successfully executing on our commercial strategy, with an initial focus
pre-delivery	on the premium private and business aviation segment, before addressing mass
market demand for scheduled regional shuttle services.
payment
In line with the previously announced binding agreement, we received from UK
RECEIVED FROM EVOLARE
operator eVolare our first PDP for 10 Lilium Jets. The PDPs can serve as a non-
dilutive source of funding for the development and certification of the Lilium Jet.
Further, we signed a Memorandum of Understanding (MoU) with ifly (Greece).
Together, our total order pipeline has grown to potential sales of up to 640
Lilium Jets from multiple customers across Europe, South America, the Middle
Pipeline for	East and the United States. In the months ahead, we expect to convert existing
commercial MoUs into binding aircraft purchase agreements.
up to 640
aircraft sales	Lilium intends to participate in key customer facing aerospace events, including
the European Business Aviation Convention & Exhibition (EBACE) in Geneva,
LILIUM ACTIVELY ENGAGED IN	Switzerland (May 23-25) and the Paris Air Show (June 19-25).
CONVERTING MOUs