Lilium Welcomes KfW Due Diligence Undertaking
Lilium has announced that the German Federal Government and the Free State of Bavaria have tasked KfW, a state development bank, to conduct due diligence on Lilium. This is a move towards securing public support for the company.
Lilium targets a minimum of €100 million in loans guaranteed by the federal government and Bavaria.
CEO Klaus Roewe expects a swift due diligence process and highlights the importance of electrification in decarbonizing the industry.
Lilium, founded in 2015, is a pioneering eVTOL aircraft manufacturer, with over 1,000 employees and a strong European footprint.
The company plans to expand operations to France and has an order pipeline of over 780 Lilium Jets, with initial production beginning in 2023 and entry into service expected by 2026.
Estimates suggest the global eVTOL market could reach $1 trillion by 2040.
- Lilium targets a minimum €100 million loan from KfW, boosting financial stability.
- Support from German and Bavarian governments signifies strong public backing.
- The swift due diligence process expected due to transparent operations.
- Lilium has accumulated over 780 Lilium Jets in orders, indicating strong market demand.
- Initial production started in 2023 with plans for entry into service by 2026.
- Expansion talks with the French government indicate growth potential.
- Lilium's workforce of over 1,000 and international operations strengthen its market position.
- Morgan Stanley estimates a $1 trillion eVTOL market by 2040, benefiting companies like Lilium.
- The exact loan amount from KfW is yet to be determined, leaving financial details uncertain.
- Dependence on government guarantees highlights potential financial vulnerabilities.
- Entry into service planned for 2026 implies a long wait for revenue generation from new jets.
- Expansion into France may introduce logistical and financial challenges.
- Uncertainty in the global eVTOL market, despite optimistic estimates, could impact future revenues.
Insights
The due diligence by KfW signals an important step for Lilium's financial stability and credibility. If successful, the expected loan of at least
From a market perspective, the news underlines Lilium's strategic alignment with the broader trend towards electrification and decarbonization in the aviation industry. The support from the German government can be seen as a competitive advantage, positioning Lilium favorably against international rivals, particularly those in the USA and China. The growth potential of the eVTOL market, estimated to be worth $1 trillion by 2040 according to Morgan Stanley, highlights the long-term investment opportunity. However, investors should be aware of the inherent risks associated with emerging technologies and regulatory hurdles that could impact adoption rates and market penetration.
Technologically, Lilium's development of the first all-electric vertical take-off and landing jet places it at the forefront of a burgeoning sector. The certification basis for its eVTOL aircraft in both Europe and the USA sets it apart, indicating robust regulatory compliance and technological innovation. This foundation is important for scaling production and market entry. Investors should note the technical complexities involved in eVTOL production, which requires significant R&D and specialized engineering skills. The successful completion of KfW's due diligence could also signify confidence in Lilium's technology and operational capabilities, potentially accelerating entry into service by 2026.
- Diligence undertaking by KfW is a decisive step towards public support of Lilium
- CEO Klaus Roewe: “We are expecting a swift process.”
- Lilium targets minimum
€ 100 million KfW loan secured by default guarantee from the federal government and Bavaria
MUNICH, Germany, May 15, 2024 (GLOBE NEWSWIRE) -- The Federal Government of Germany and the Free State of Bavaria have commissioned the state development bank KfW in Frankfurt to conduct due diligence on Lilium (NASDAQ: LILM), developer of the first all-electric vertical take-off and landing (“eVTOL”) jet and global pioneer in Regional Air Mobility (RAM), as part of the customary state support process. Once the diligence is completed and results satisfactory, Lilium expects to receive guarantees from the Federal Government and the Free State of Bavaria as security for a KfW loan, the exact amount of which is yet to be determined.
“We would like to thank those responsible in Berlin and Munich for their decision and the constructive cooperation over the last few weeks,” said Lilium CEO Klaus Roewe. “We expect due diligence to be swift as transparency is a daily routine for us as a listed company.” Roewe continued:
“Electrification is in strong public interest as a contribution to the necessary decarbonization of the industry. German government support is not only about creating a level playing field with the USA and China, but also about Germany signaling to the financial markets that innovations and new technologies are supported in Germany.”
Lilium is a world-leading pioneer in electric aviation and the only manufacturer worldwide with a certification basis for a powered lift eVTOL aircraft in Europe and the USA. Founded in 2015 by four graduates of the Technical University of Munich, and located at the Oberpfaffenhofen airport, near Munich, Germany, Lilium currently employs a workforce of over 1,000, more than
Initial production of the Lilium Jet began in 2023 with entry into service planned for 2026. Lilium has accumulated an order pipeline of over 780 Lilium Jets, including binding orders and MoU agreements from operators in the United States, South America, Europe, Asia, and the Middle East. According to estimates by Morgan Stanley as of 2021, the global eVTOL market could be worth
Contact information for media:
Rainer Ohler
+49 172 4890353
rainer.ohler.ext@lilium.com
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 1,000 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.
Lilium Forward Looking Statements:
This press release 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, including the estimated potential size of the global eVTOL market; (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; and (iv) the timing and successful completion of the diligence exercise by KfW and the anticipated timing, size, form, and closing, if at all, of any financial investment from KfW or guarantee from the federal government of Germany or the Free State of Bavaria. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “could,” “expect,” “estimate,” “future,” “intend,” “may,” “on track,” “plan,” “project,” “should,” “strategy,” “targeted,” “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 press release 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, 2023, 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
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