Lilium N : Q1'24 Shareholder Letter

Shareholder Letter Q1 2024

Q1 2024

Our highlights

Production of first Lilium Jets advances significantly

Battery pack production started

Testing underway towards first piloted flight and certification

Commercial order book grows

Successfully expanded support network in key markets

Fundraising success

• First Lilium Jet, MSN-1, advances into final assembly
• Fuselage, wings and canards of MSN-2 assembled
• Assembly takes place at Lilium's purpose-built battery facility, at Lilium
  headquarters,­near Munich, Germany
• Commissioning underway on advanced propulsion unit test bed
• Construction started on Lilium Jet certification test facility, on track to be operational by end of summer
• UrbanLink orders 20 Lilium Jets, with additional 20 options, including customary pre-delivery payment plan
• eVolare announces binding sale and purchase agreements for 4 Lilium Jets
• Partnership with Aéroports de la Côte d'Azur and UrbanV to bring Lilium Jet flights to the French Riviera
• Atlantic Aviation to support US-wide Lilium Jet operations
• Successfully completed fundraise with $114 million gross proceeds
• Due diligence started for intended loan with guarantee from the German Federal Government and the State of Bavaria
• Lilium in advanced discussions with the French government towards a government guarantee-backed loan

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Dear Lilium shareholders,

Over the past few months, our company has continued to make significant progress towards industrialization and market entry of the revolutionary, all-electric Lilium Jet. Our first test aircraft are advancing well. Customers like what they see - the spacious cabin, the projected range and unit economics

• and our pipeline of orders with pre-delivery payments has grown. Discus- sions around further funding have also gained traction on multiple fronts, with our successful, recent $114 million gross proceeds capital raise backed by new and existing investors, and significant advances in our funding dis- cussions on government support from France and Germany.

At Lilium, our engineering and manufacturing teams are currently working full speed to achieve our next critical milestone: first piloted flight of the Lilium Jet, targeted for the end of this year. In April, we started production of our aviation-grade battery packs, a key program milestone for the year. The first Lilium Jet (MSN-1) continues to make good progress on the final assembly line. Fuselage, wings and canards of our second Lilium Jet, MSN-2, have been completed by our aerostructures suppliers and the fuselage was delivered to Lilium in May.

Meanwhile, Lilium has remained in constant dialogue with its primary airworthiness authority, EASA, towards converging on test aircraft requirements and the program for demonstrating flight safety.

Lilium recently began commissioning of the first of two planned propulsion test facilities at its headquarters site near Munich. The facilities, formerly used for the engine check of conventional fighter aircraft, are being modified for the requirements of Lilium's electric jet design. The first facility, currently in the commissioning phase, already has test equipment installed and a double propulsion unit on the test bed.

Our first test aircraft are advancing well

The fuselage of our

second­ aircraft was ­delivered to Lilium in May

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In April, Lilium successfully completed wind tunnel testing of the Lilium Jet's aerodynamic behavior at transition and high-speed cruise at the German -Dutch Wind Tunnels (DNW) facility in Marknesse, Netherlands. Lilium's avionics systems integration test rig, developed and built by Honeywell, is successfully up and running. In May, construction started on an advanced test facility for integration and certification testing of the Lilium Jet, which is due to become operational in late summer 2024.

On the commercial front, the Lilium Jet order pipeline continues to grow. In May, advanced aviation operator UrbanLink purchased 20 Lilium Jets for operation in South Florida. The order reflects a clear preference for the expected superior performance, range, unit economics and passenger experience offered by the Lilium Jet. UrbanLink also secured an option for 20 additional Lilium Jets. In addition, eVolare announced the signing of binding sale and purchase agreements for the acquisition of 4 Lilium Jets and agreed on terms for the reservation of up to an additional 12 Lilium Jet production slots.

In total, Lilium now has 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.

With regard to our cash management, Lilium continues to follow a disciplined approach focused on the delivery of key Lilium Jet program milestones. The adjusted cash spend1 in Q1 2024 of €94.7 million ($102 million2) was driven primarily by milestone execution on the Lilium Jet development and related supplier expenses, especially in connection with the start of production of the first Lilium Jet at the end of 2023. Lilium's adjusted cash spend for the first half of 2024 is now expected to be €185 - €195 million ($200 - $211 million). At the end of the quarter and prior to the fundraising arranged in May, Lilium's unaudited liquidity totaled €102 million3 ($110 million).

1. Excludes fundraising and related fees, and other non-operational cash flows.

2. Dollar figures in this section based upon an exchange rate of 1.00 euro to 1.08 U.S. dollar.

3. Includes cash, cash equivalents and other financial assets (excluding investment in equity instruments).

UrbanLink purchased 20 Lilium Jets for operation in South Florida

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At the end of May, Lilium concluded a $114 million gross proceeds capital raise backed by new and existing investors.

Also in May, the German Federal and Bavarian State governments commissioned the state-owned development bank KfW to conduct due diligence on Lilium as part of their customary investment process. Once the diligence is completed, Lilium expects to receive guarantees from the Federal Government and the State of Bavaria as security for a loan, from the German state bank. Lilium expects due diligence will take around 6 to 8 weeks and a funding amount of around €100 million.

In addition, Lilium confirmed that it is in advanced discussions towards a French government guarantee-backed loan, which would be non-dilutive from a financing perspective. Lilium estimates this funding will be around €200 million with the disbursements tied to investment by Lilium to develop and expand its industrial footprint in France. Lilium plans to use the funding to build high-volume production facilities in France, including a final assembly line, a battery pack assembly line and maintenance facilities.

Lilium continues to engage in active dialogue with sovereign entities, strategic partners, prospective customers and stakeholders for further funding initiatives.

In May, Lilium concluded­ a $114 million gross ­proceeds capital raise

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Summary and outlook

In summary, we continue to deliver our key milestones as we progress to our first manned flight, targeted to occur in late 2024 and entry into service targeted for 2026.

We are well into assembly of our first Lilium Jet and plan to continue to provide updates on our progress as we go through the rest of the year.

On the commercial front the superior expected performance, unit economics and comfort provided by the Lilium Jet has resulted in around 56 firm orders, and we continue to convert MoUs into firm orders with pre-delivery payments.

We hope to show you further progress on our ongoing discussions with airlines on fleet orders in the coming months.

We are continuing through the processes towards obtaining funding support from the German and French governments and most important to us is the continued long-term support of our largest shareholders and suppliers, as we progress to entry into service.

Klaus Roewe	Johan Malmqvist
CEO
CFO

Lilium flight path to entry into service

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Commercial

UrbanLink orders 20 Lilium Jets for its Florida Network

Further boosting the Lilium Jet order pipeline, as well as Lilium's Florida plans, Lilium announced a partnership with advanced aviation operator UrbanLink to operate Lilium Jets in South Florida. As part of the agree- ment, UrbanLink will purchase 20 Lilium Jets, with pre-delivery payments. UrbanLink also secured an option for 20 additional Lilium Jets.

Newly launched UrbanLink is led by Ed Wegel, a seasoned airline executive with 40 years of experience in financing, operations, and distribution, having previously served as CEO & Founder of GlobalX and in executive positions at JetBlue, Atlantic Coast Airlines, BWIA International Airlines, and Eastern Airlines.

Lilium's partnership with UrbanLink marks a major milestone in the acceleration and adoption of advanced air mobility in South Florida. As part of its entry into South Florida, UrbanLink plans to operate from the network of Florida vertiports that Lilium and its partners have been working on for the past five years. Lilium has been a driving force for advanced air mo- biity in Florida, identified as a priority market due to its affluent popula- tion, favorable climate and booming tourist industry with nearly 80 million annual visitors.

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The partnership will leverage Luxaviation Group's ExecuJet network of 141 fixed based operations

Extended partnership with

Luxaviation Group

In May, Lilium announced an expansion of its existing partnership with Luxaviation Group, one of the largest business aircraft and helicopter operators worldwide.

The expanded partnership will leverage Luxaviation Group's ExecuJet network of 141 Fixed Based Operations to create electrified ground infrastructure for the Lilium Jet in key markets - across Europe initially, with further sites in the Middle East planned.

ExecuJet is an industry leader in ground handling and provides first class facilities for business aircraft, passengers, and crew across the world. ExecuJet's extensive network will serve as a key foundation for the Lilium Jet's intended networks across the EMEA region, including France.

eVolare confirms sale and purchase ­agreements for 4 Lilium Jets

eVolare, a subsidiary of Volare Aviation, one of the United Kingdom's largest helicopter and private jet operators, announced the signing of binding sale and purchase agreements for the acquisition of 4 Lilium Jets.

The purchase agreements include delivery schedules, guarantees, and warranties along with deposits and pre-delivery payments. Lilium and eVolare also agreed on terms for the reservation of up to an additional 12 Lilium Jet production slots for eVolare and its customers.

Based in Oxford, UK, eVolare plans to operate Lilium Jets in the London area, connecting London with outer cities and the coastal areas of En- gland.

The current agreements follow a collaboration between eVolare and Lilium on network, vertiport and operational planning, subsequent to the initial binding agreement between Lilium and eVolare in 2022.

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Lilium has teamed up with Aéroports de la Côte d'Azur and UrbanV

Partnership launched to establish Lilium Jet network on French Riviera

As part of its plans to bring Lilium Jet flights to the South of France starting in 2026, Lilium has teamed up with Aéroports de la Côte d'Azur (ACA) and UrbanV, a designer and developer of Advanced Air Mobility (AAM) networks. Building upon strong local ecosystem support in the region, Lilium plans to establish a network to connect the French Riviera with key destinations throughout Southern France, including Monaco, Nice, Cannes, St. Tropez, Toulon, Aix-en-Provence, and Marseille.

The partnership with ACA and UrbanV, the first of its kind in the region, aims to establish and operate vertiports at Nice Côte d'Azur - France's second-largest airport - together with Cannes Mandelieu and Golfe de Saint Tropez, with further locations under consideration.

Lilium is currently in advanced discussions with further local partners to create vertiports in Monaco, Sophia Antipolis, Toulon, and Marseille, which discussions are expected to be concluded before the end of the year. Edeis, a leading French engineering and construction firm, has agreed to connect Aix-en-Provence with a vertiport at Aix les Milles.

The French Riviera, globally known as the Côte d'Azur, combines some of the world's most attractive holiday and business event destinations. The Côte d'Azur serves as a vital transportation hub attracting over 11 million tourists annually.

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Atlantic Aviation to support

US-wide Lilium Jet operations

In the first quarter of 2024, Lilium also teamed up with Atlantic Aviation, a leading provider of aviation services and infrastructure. Based on the MoU agreement, Atlantic Aviation and Lilium will work together to prepare North American airport sites for the Lilium Jet. Atlantic Aviation operates at over 100 locations across the US, including more than 30 airports within Lilium's planned launch markets of Florida, Southern California, the Northeast corridor, and Texas.

As part of the collaboration, Lilium and Atlantic will focus on infrastructure deployment and operations, including passenger experience, aircraft flight paths, charging capabilities, passenger facilities, operations forecasting, and more.

Downtown Manhattan Heliport prepares to welcome eVTOL aircraft

In March, Lilium welcomed the decision of the New York City Economic Development Corporation (NYCEDC) to accommodate eVTOL operations at the Downtown Manhattan Heliport and choose an operator that will serve a wide range of advanced air mobility use cases at the Downtown Manhattan Heliport.

The Downtown Manhattan Heliport, located near Battery Park, along the East River, will play a key role in the planned future Northeast Corridor regional network for Lilium Jet operators. At launch, the Lilium Jet's planned range will enable connections with Philadelphia, Atlantic City and the southern reaches of the Jersey Shore, and the Hamptons, and as battery technology improves over the following five years or so, we believe connections will extend to Baltimore, Boston, Martha's Vineyard and beyond.

NYCEDC recently closed its Request for Proposals window for firms to operate a future Downtown Manhattan Heliport in Lower Manhattan. Lilium will continue working with NYC officials, potential vertiport operators and planned operators of the Lilium Jet to support this project.

The news followed February's announcement that Lilium has designated the future Orlando International Airport (MCO) vertiport as a network hub for Lilium Jet operators in central Florida.

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The Downtown ­Manhattan Heliport will play a key role in the planned ­regional network for Lilium Jet operators

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