Lilium releases Full Year and Fourth Quarter 2023 Shareholder Letter
- Secured Design Organizational Approval from EASA.
- Started assembly of the full-scale Lilium Jet.
- Formed strategic partnerships with Lufthansa and Inobat.
- Established Lilium POWER-ON aiming for $5 billion revenue by 2035.
- Raised $292 million in capital and received pre-delivery payments for the Lilium Jet.
- CEO anticipates the first manned flight by the end of 2024.
- None.
Insights
The announcement by Lilium N.V. about its Full Year and Fourth Quarter 2023 Shareholder Letter indicates a significant phase in the company's progression from design to production. The strategic partnerships and Design Organizational Approval from EASA position Lilium as a pioneer in the eVTOL industry. The early assembly of the Lilium Jet and the establishment of Lilium POWER-ON aftermarket service business could potentially disrupt the aviation market, leveraging the growing interest in sustainable transportation solutions.
Investors should note the company's proactive approach to cost management, which has resulted in cash consumption below guidance. This fiscal prudence, combined with the successful capital raise of $292 million and the reception of pre-delivery payments, may signal a strong financial discipline that could be reassuring to stakeholders. However, the ambitious revenue target of $5 billion from the aftermarket service by 2035 should be scrutinized against industry benchmarks for new aviation technologies, which typically face long gestation periods before achieving profitability.
From a financial perspective, Lilium's recent capital raise and pre-delivery payments represent a solid liquidity position that could support its ambitious development timeline. The $292 million in additional capital underscores investor confidence in the company's vision and strategic direction. Yet, the company's valuation and future financial performance hinge on its ability to meet production milestones and regulatory approvals, with the first manned flight of the Lilium Jet being a critical event to watch in 2024.
Investors should consider the risks associated with the eVTOL market, which is still in its nascent stages and subject to regulatory, technological and market adoption uncertainties. The extended partnership with Inobat for high-volume battery cell production reflects a strategic move to secure the supply chain, which is crucial for the scalability of eVTOL operations. The potential for recurring revenue from the aftermarket service business introduces an attractive long-term revenue stream that could appeal to investors looking for growth opportunities in the green technology sector.
The technical milestone of receiving Design Organizational Approval from the European Union Aviation Safety Agency (EASA) cannot be understated. This approval demonstrates Lilium's adherence to the stringent safety and design standards required for aircraft under EASA’s SC-VTOL rules, which is a significant endorsement for the Lilium Jet's design and production processes. The commencement of full-scale Lilium Jet assembly is a tangible step towards bringing the product to market and it showcases the company's transition from a research and development phase into a production-ready stage.
The strategic cooperation with Lufthansa to explore eVTOL opportunities suggests a vote of confidence from an established player in the aviation industry. This partnership could facilitate market entry and acceptance of Lilium's technology. Furthermore, the establishment of an aftermarket service business, Lilium POWER-ON, is an innovative approach to creating a support ecosystem for eVTOL aircraft, which is critical for long-term operational sustainability and customer satisfaction.
MUNICH, Germany, Feb. 27, 2024 (GLOBE NEWSWIRE) -- Lilium N.V. (Nasdaq: LILM) (“Lilium”), developer of the first all-electric vertical take-off and landing (“eVTOL”) jet, has released its Full Year and Fourth Quarter 2023 Shareholder Letter. The Shareholder Letter, which discusses Lilium’s progress towards important milestones in the development of its revolutionary Lilium Jet, can be accessed on the Lilium investor relations website.
Recent Accomplishments
- Received Design Organizational Approval from the European Union Aviation Safety Agency (EASA), making Lilium the world’s first company qualified to hold a full type-certificate for aircraft certified under EASA’s SC-VTOL rules.
- Began assembly of the first full-scale Lilium Jet at Lilium’s production facilities.
- Formalised an MoU for a strategic cooperation with Lufthansa to jointly explore holistic eVTOL opportunities.
- Extended partnership with Inobat to prepare high-volume battery cell production confirming Lilium’s multiple-sourcing strategy.
- Established eVTOL industry’s first Aftermarket Service Business, Lilium POWER-ON, which is expected to generate at least
$5 billion in recurring revenue by 2035, with strategic partnerships already in place for aircraft spares, maintenance and repair and for fast charging solutions. - In 2023, completed significant funding to maintain the pace of aircraft development by successfully raising
$292 million in additional capital, and also received first customer pre-delivery payments for the Lilium Jet ahead of expectations. Strong execution on cost management led to cash consumption below guidance.
Management Commentary
Lilium CEO Klaus Roewe commented:
“For Lilium, 2023 was a pivotal year, in which we transitioned from design to production of the Lilium Jet, confirmed our credentials as an aviation company by receiving Design Organization Approval from EASA and secured important airline and battery cell production partnerships.
2024 will be another key year for our company with the next important milestone in our aircraft development program, first manned flight of the Lilium Jet, targeted for the end of the year."
Contact information for media:
Meredith Bell
Vice President, External Communications
press@lilium.com
Contact information for investors:
Rama Bondada
Vice President, Investor Relations
investors@lilium.com
About Lilium
Lilium (NASDAQ: LILM) is creating a sustainable and accessible mode of high-speed, regional transportation for people and goods. Using the Lilium Jet, an all-electric vertical take-off and landing jet, designed to offer leading capacity, low noise, and high performance with zero operating emissions, Lilium is accelerating the decarbonization of air travel. Working with aerospace, technology, and infrastructure leaders, and with announced sales and indications of interest in Europe, the United States, China, Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi Arabia, Lilium’s 950+ strong team includes approximately 500 aerospace engineers and a leadership team responsible for delivering some of the most successful aircraft in aviation history. Founded in 2015, Lilium’s headquarters and manufacturing facilities are in Munich, Germany, with teams based across Europe and the U.S. To learn more, visit www.lilium.com.
Forward Looking Statements:
This communication contains certain forward-looking statements within the meaning of the U.S. federal securities laws, including, but not limited to, statements regarding (i) Lilium N.V.’s and its subsidiaries (collectively, the “Lilium Group”) proposed business and business model, (ii) the markets and industry in which the Lilium Group operates or intends to operate, (iii) the anticipated timing of the commercialization and launch of the Lilium Group’s business in phases, including the timing of the first manned flight and the Lilium Jet’s entry into service (iv) the Lilium Group’s ability to successfully patent its intellectual property and the future performance of its innovations, (v) the expected results of the Lilium Group’s business and business model, including the Lilium Group’s expectations with respect to Lilium POWER-ON, (vi) the Lilium Group’s capital raising expectations and the consummation of capital raising transactions, (vii) the timing of the Lilium Group’s targeted regulatory milestones, including obtaining type certification (and type certificate validation) of the Lilium Jet, (viii) the effect on the Lilium Group’s business from securing an EASA Design Organization Approval, (ix) the Lilium Group’s anticipated receipt of pre-delivery payments and the extent to which such payments will help cover its capital requirements, (x) the Lilium Group’s expectations concerning its strategic collaborations, partnerships and suppliers, (xi) the production and delivery of the Lilium Jet, including expectations regarding its batteries, (xii) the anticipated increase in the Lilium Group’s workforce and (xiii) the Lilium Group’s guidance for the first half of 2024, including estimated adjusted cash spend and unaudited liquidity. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “could,” “expect,” “estimate,” “future,” “intend,” “may,” “on track,” “plan,” “project,” “should,” “strategy,” “will,” “would” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events that are based on management’s current expectations with respect to future events and are based on assumptions and are subject to risk and uncertainties that are subject to change at any time. Actual events or results may differ materially from those contained in the forward-looking statements. Factors that could cause actual future events to differ materially from the forward-looking statements in this communication include those risks and uncertainties discussed in Lilium’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including in the section titled “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2022, on file with the SEC, and similarly titled sections in Lilium’s other SEC filings, all of which are available at www.sec.gov. Forward-looking statements speak only as of the date they are made. You are cautioned not to put undue reliance on forward-looking statements, and Lilium assumes no obligation to, and does not intend to, update, or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ
What milestone did Lilium achieve in 2023?
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When does CEO Klaus Roewe anticipate the first manned flight of the Lilium Jet?
