Q1 2024 Lilium NV Earnings Call

Okay.

Operator: Good day, and thank you for standing by. Welcome to the Lilium Q1 2024 Business Update conference call. At this time, all participants are in a listen-only mode.

Speaker Change: Good day and thank you for standing by welcome to the lithium Q1, 'twenty transport business update conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question during the session you will need.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising that your hand is raised.

Speaker Change: Press Star one on one on your telephone you will then hear an automated message advising Johan does raise to withdraw your question. Please press star one on one again. Please be advised that today's conference is being recorded I would now like to turn the conference over to your first speaker today. Please go ahead.

Operator: To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today. Please go ahead. Good afternoon, and good morning, everyone. My name is Rama Bondada.

Unknown Attendee: Good afternoon, and good morning, everyone. My name is Ronald Mcdonald, William as global head of Investor Relations welcome to our first quarter 2020 for a business update with US today for the presentation, we have our chief Executive Officer Klaus Roe.

Rama Bondada: I'm Lilium's global head of investor. Welcome to our first quarter 2024 business. With us today for the presentation, we have our Chief Executive Officer, Klaus Roewe, and our Chief Financial Officer, Johan Meijer, Chief Commercial Officer, Sebastian Borel, and our co-founder.

Speaker Change: And our Chief Financial Officer, Johan Mount of course, our Chief Commercial Officer, Sebastian Gorilla, and our co founder and Chief engineer for innovation. Daniel again will also be with us to answer questions. After the presentation.

Speaker Change: Please note that a recording of the conference call will be posted on <unk> Investor Relations page soon after this event.

Speaker Change: A reminder, this morning, we posted our Q1 2024 shareholder letter on our website and we invite you to take a look.

Speaker Change: Before handing over to our first speaker, let me just pointed out that our presentation will include forward looking statements within the meaning of the United States Federal Securities law and subject to risks uncertainties and other factors that could cause <unk> actual results to differ materially from such statements.

Speaker Change: Please refer to the cautionary statements in our shareholder letter and the risk factors discussed in our filings with the U S Securities and Exchange Commission for more information on these risks.

Rama Bondada: Engineer for Innovation, Daniel Wiegand, will also be with us to answer questions after the call. Please note that a recording of the conference call will be posted on Lilium's Investor Relations page soon after. As a reminder, this morning we posted our Q1 2024 shareholder letter on our website, and we invite you to take a look at it. Before handing over to our first speaker, let me just point out that our presentation will include forward-looking statements within the meaning of the United States federal securities law that are subject to risks, uncertainties, and other factors that could cause Lilium's actual results to differ materially. Please refer to the cautionary statement, the Shareholder Letter, and the Risk Factors Discussed in our Filings with the U.S. Securities Exchange. For more information, visit www FEMA.gov So without further ado, let me hand it over to Klaus.

Speaker Change: So without further Ado, let me hand, it over to Klaus Clos.

Klaus Roewe: Thank you, Rama. Great to join you all on this call today, coming back from recent air shows in Geneva and Berlin and the many meetings there with customers, suppliers, and other industry players, and, in particular, high-ranking politicians from different countries. It's clear we have a product that really stands out, a product that fascinates and draws in the crowd. But what's maybe less understood are the very unique qualities of Lilium as a company, our approach, our business model, and our core technology. I see five main differentiators that set us apart from the rest of the e-vehicle industry. First,

Klaus Roewe: Thank you Ralph Great to join you all on this call today coming back from recent air shows in Geneva in Berlin, and the many meetings with customers suppliers and other industry players and in particular highest ranking politicians from different countries.

Speaker Change: Clear, we have a product that really stands out a product that fascinate and draw in the crowds.

Speaker Change: Maybe less understood at the very unique qualities of lithium as a company our approach.

Speaker Change: Business model and our core technologies.

Speaker Change: The five main differentiators that set us apart from the rest of the EBIT towards industry first.

Klaus Roewe: We have a management team that has previously been involved in the design, development, certification, production, entry into service, and in-service support of the safest and most successful aircraft in modern aviation history. The majority of our employees are engineers. We are an aerospace engineering and aerospace technology company. Number two, we believe we are the only company that is solving regional air mobility. Our mission at Sweet Spot, where we expect to have a clear industry superiority, is on flights greater than 25 miles and up to 200 miles and more.

Speaker Change: We have a management team that has previously been involved in the design development certification production entry into service and in service support of the safest and most successful aircraft and aviation history.

Speaker Change: Majority of our employees are engineers, we have in aerospace engineering and Aerospace technology company.

Number two.

Speaker Change: We believe we are the only company that is resolving regional mobility, our mission that sweet spot, where we expected to have a clear industry. So curiosity is on slides greater than 25 miles and up to 200 miles and more our jet is designed with a larger cabin and seating capacity in the sector. We have the longest project.

Klaus Roewe: Our jet is designed with the largest cabin and seating capacity in the sector. We have the longest projected operating range in the sector. And at an estimated $3 per passenger mile, we assume a meaningful margin for the operator.

Speaker Change: Operating range and the sector and with an estimated $3 per passenger mile. We assume a meaningful margin for the operator, we expect to be one of the cheapest option for EBITA passengers, if not the cheapest even though slightly below 25 months.

Klaus Roewe: We expect to be one of the cheapest options for eVTOL passengers, if not the cheapest, even at flights below $2,000. Our third differentiator is our core technology built around our high-performance battery, our redundant electrical management system, and our electric jet architecture, optimized for efficient flight. We have the IP and proprietary rights to this technology, and this is what drives our industry-leading projected range and speed. And this is why we will be the only regional air mobility option in the sector.

Speaker Change: Our third differentiator is our core technology built around our high performance battery, our redundant electrical management system that our electric architecture optimized for efficient flight, we have VIP and proprietary rights on this technology. This is what drives our industry, leading product range and speed.

Speaker Change: And this is why we will be the only regional mobility option in the sector.

Klaus Roewe: Fourth, our aircraft is one of the very few in our industry that is on track for certification to the very highest certification standards in commercial aviation, and safety to this standard is not something we will compromise. This high-level safety standard is also what we expect will support our market entry in multiple jurisdictions throughout the world. Our business model targets the most profitable portions of commercial aviation, the OEM and aftermarket. At launch, we aim to capture the premium segment of the existing market that we believe our jet is uniquely positioned for. Our research suggests that about 20% of business jet flights are under 155 miles, and in the executive helicopter market, about 80% of flights are under 155 miles.

Speaker Change: Our aircraft is one of the very few in our industry that is on track for certification to the very highest certification standards in commercial aviation and safety to the tender is not something we will compromise on this is high level safety standard is also what we expect will support our market entry in multiple jurisdictions throughout the world.

Speaker Change: Fifth.

Speaker Change: Our business model targets, the most profitable portions of commercial aviation is the OEM and after market business at launch we aim to capture the premium segment, an existing market that we believe <unk> is uniquely positioned for our research suggests that about 20% of business jet slides.

Speaker Change: <unk> hundred 55 miles.

Speaker Change: And the executive helicopter market about 80% of flight under 155 months.

Klaus Roewe: As we ramp up the business, we will focus primarily on airline customers with robust aftermarket services. Lilium already has orders and MOU agreements from Premium and Allen Customs. Ladies and gentlemen, I think it is important to take note of these five differentiating factors that set Lilium apart. And I would like to highlight the significant strides we have taken these past few months. The momentum continues.

Speaker Change: As we ramp up the business, we will focus primarily on airline customers with global aftermarket service activity Lincoln already has ordered an mou agreements from premium and airline customers, ladies and gentlemen, I think it is important to take note of these five differentiating factors.

William Chapman Peterson: William Pate.

William Chapman Peterson: And I would like to highlight the significant strides we have taken these past few months. The momentum continues our first test aircraft, while advancing our other pipeline is growing and we've made significant funding progress. We have our next key milestones first pilot at flat probably an hour side, let me take you through the highlights.

Klaus Roewe: Our first test aircraft are well advancing. Our order pipeline is growing, and we've made significant funding. We have our next key milestone, the first piloted flight, firmly in our sights. Let me take you through the highlights.

Klaus Roewe: First, we have made significant advances in the production of our first Lilium. At the end of 2023, the LiliumJet program hit an historic milestone with the delivery to the company's production facilities outside Munich of the first LiliumJet fuel alarm. Soon after, Lilium completed the first joint of the fuselage, wing, and cargo. During the first quarter of 2024, major aircraft structures and systems continued to arrive at Lilium from our suppliers, enabling Lilium to advance aircraft build and verify quality and interfaces for the first set of Lilium jets.

Speaker Change: First we have made significant advances in the production of our first lien debt.

Speaker Change: At the end of 2023, the lineage program hit a historic milestone with the delivery to the company's production facilities outside Munich Auto first lithium jet fuselage. Soon after medium completed the first joined a few electric weakened collapsed during the first quarter of 2024 major aircraft structures and systems.

Speaker Change: Continued to arrive at Lillian from our supplier, enabling Williams to advanced aircraft build and verify quality of interfaces for the first set of Lillian Jets in January and a group of digitally delivered the first lending here in March fungal burn deliver the first set of lithium cockpit and cabin windows.

Klaus Roewe: In January, MA Group of Italy delivered the first landing gear. In March, Saint-Gobain delivered the first set of Lilium cockpits and cabin windows. The cabin windows, significantly larger than conventional aircraft windows, are a key differentiating feature of the Lilium jet and are expected to play an integral role in the outstanding in-flight experience that sets apart the Lilium jet. Match-up of fuselage, windows, and windshields conducted at the Lilium Aerostructures Facility confirms the precision fit of the structural interface.

Speaker Change: Kevin window significantly larger than conventional aircraft windows are.

Speaker Change: A key differentiating feature of the lithium jet and are expected to play an integral role in the outstanding inflight experience et cetera part of lithium jet.

Speaker Change: A few of the large windows and windshields conducted at the lithium metal structures facility confirm the precision fit cost structure interfaces.

Klaus Roewe: Also in March, a team of experts from aircraft interior supplier Diehl Aviation conducted a successful trial fitting of floor panels on the first Lilium jet ahead of delivery of the first production ship. A similar trial fitting was conducted in April with a prototype pilot seat built by Lilium's supplier Explicit based in Paris, France. Parts delivered have shown impressive mastery of complex and demanding interfaces, such as wing and landing gear to fuselage and cockpit windshield to fuselage.

Speaker Change: Also in March a team of experts from aircraft interiors to play a deal aviation conducted a successful trial fitting of floor tenants on the volume that add up delivery of the first production ships at a similar trial fitting was conducted in April was a prototype pilot seat built by Williams supplier explicit based <unk>.

Speaker Change: Trunks.

Speaker Change: <unk> delivered have shown impressive mastery of complex and demanding interfaces, such as wheat and lending at a few of the electrical and cockpit windshield to fuselage.

Klaus Roewe: The successful assembly of these major aircraft sections confirms Lilium's supply chain philosophy of leveraging the expertise of established aerospace suppliers capable of building parts to exact specifications and in compliance with aviation quality standards. The high-voltage electrical harnesses, a system of cables that distribute power from the aircraft batteries to the propulsion units, have been successfully installed on the wings and canards of the first Lilium jet, marking an important achievement in the aircraft production process.

Speaker Change: Except for the Assembly of these major aircraft sections confirms lithium supply chain philosophy of leveraging the expertise of <unk>.

Speaker Change: Published aerospace suppliers capable of building parts through the exact specifications and in compliance with aviation quality standards.

Speaker Change: The high voltage electrical harnesses the system of cables that distribute power from the aircraft better reputable potent units have been successfully installed into the winter collapse for the FERC <unk>, marking an important achievement in the production process.

Klaus Roewe: The harness system is being specifically designed and built for the LiliumJet in cooperation with GKN, Lilium's partner for electrical wiring integration. The system is essential for the Lilium Jet's safety-critical power distribution architecture, combining redundancy, low weight, and optimized utilization of space. Production of the aerostructures of the next Lilium jet is already well advanced, with Lilium's partner at C2V successfully assembling the fuselage of Lilium Jet No. 2, and ANOVA its wings and canals.

Speaker Change: This system has been specifically designed and built for the lithium jet in cooperation with GKN Williams partner for electrical wiring integration.

Speaker Change: System is essential for the lithium safety critical power distribution architecture, combining redundancy low weight and optimized utilization of space.

Speaker Change: Production of our structure of the next million is already well advanced with leading partners to be successful you're assembling the fuselage of lithium that number two and Nova it swings in kind of the fuselage of aircraft number two both delivered to Leo been made on the battery too we made important progress which takes me to our next.

Klaus Roewe: The fuselage of aircraft No. 2 was delivered to Lilium in May. On the battery, too, we made important progress, which takes me to our next highlight. Number two, we began production of our aviation-grade battery. In April this year, Lilium started production of our advanced aviation-grade battery pack. The start of battery production represents a landmark in the development of the Lilium jet, and follows extensive testing of battery packed subcomponents from individual cell to stack level with a focus on performance, safety, and regulatory conformity.

Speaker Change: Number two we began production of our aviation great battery packs in April this year lithium started production of our advanced aviation grade battery packs start of battery production represents a landmark in the development of the lithium jet it follows extensive testing of better <unk>.

Speaker Change: Ponant from individuals sell to stack level with a focus on performance safety and regulatory conformity.

Klaus Roewe: Lilium's battery packs are being designed to meet EASA's stringent aircraft safety requirements regarding shock resistance, heat resistance, containment, and redundancy. They are also being designed to deliver outstanding power and energy density to support a business model focused on regional air mobility. Lilium's unique pioneering battery pack is comprised of lithium-ion cells with silicon-dominant anodes that will allow for higher energy power and faster charging capabilities than graphit

Speaker Change: <unk> battery packs are being designed to meet.

Speaker Change: Spring and aircraft's safety requirements regarding truck resistance heat resistance containment and redundancy. There also being designed to deliver outstanding power energy density to support the business model focused on regional mobility.

Speaker Change: This unique pioneering battery pack is comprised of lithium ion cells with silicon dominant.

Speaker Change: That will allow for higher energy power and faster charging capability the graphite anode cells.

Klaus Roewe: Each Lilium jet aircraft will be equipped with 10 independently functioning battery packs that are designed to enable safe flight and landing, even in the case of failure of any single battery pack. Lilium has secured comprehensive intellectual property rights for its unique battery technology. Lilium Jet Battery Packs are being assembled at Lilium's Purpose-Built Battery Facility, located at the company headquarters outside Munich. We are currently looking at locations in France for high-volume facilities to be brought online to support the production ramp.

Speaker Change: Each Lillian jet aircraft will be equipped with 10 independently functioning battery packs that are designed to enable safe flight lending even in case of failure of any single battery pack.

Speaker Change: William has secured comprehensive intellectual property rights for its unique battery technology.

Williams: Williams battery packs are being assembled at Williams purpose battery facility located at company headquarters outside Munich. We are currently looking at locations in France for high volume facilities to be brought online to support the production ramp up.

Klaus Roewe: Lilium has been supported in the design of the initial assembly line and production ramp-up by suppliers with extensive experience in battery industrialization, especially in the automotive sector. Amongst suppliers supporting us on the battery are Baumann Automation and EDAC, both based in Germany.

Speaker Change: <unk> has been supported in the design of the initial assembly line and production ramp up by suppliers with extensive experience and better reindustrialization, especially in the automotive sector amongst suppliers supporting us on the battery Beaumont automation and <unk>, both based in Germany.

Klaus Roewe: Lilium's battery facility is equipped with new generation digital tools that enable process control, efficient data collection, and traceability. The first units of the battery assembly are being used for industrial verification testing. Further production on the Lilium battery assembly facility this year will be used for performance and safety testing and for equipping the first aircraft for the start of piloted flight testing.

Speaker Change: Battery facility is equipped with new generation digital tools that enable process control efficient data collection and traceability. The first unit of the battery Assembly are being used for industrial verification testing further production on the lithium battery Assembly facility. This year will be used top performance in <unk>.

Speaker Change: Testing and for equipping the first aircraft for the start of piloted flight testing, which brings me to our next highlight.

Klaus Roewe: Third, we are testing towards the first flight and certification. With entry into service targeted for 2026, Lilium remains on track for type certification of the Lilium jet with the EU Aviation Safety Agency, EASA, its primary airworthiness. The AASA has been a pioneer of eVTOL standards, being the first aviation safety agency worldwide to develop a comprehensive rule set for eVTOL aircraft, the so-called SCVTOL, published already in 2019 after extensive industry consultation. Lilium received EASA Design Organization approval in In April this year, as part of the standard DOA surveillance, the ARSA conducted its first regular audit of Lilium's design organization compliance with applicable requirements.

Speaker Change: Third we are testing towards first flight and certification with entry into service targeted for 2000 $26 million remains on track for type certification of the lithium jet with the EUR Aviation Safety Agency Asaf Williams primary airworthiness authorities. He also has been a pioneer of Hebei touched on nuts.

Being the first aviation safety agency worldwide to develop a comprehensive rule set for <unk> aircraft the so-called STB toilet published already in 2019 after extensive industry consultation.

Speaker Change: <unk> received the offer design organization approval in 2023.

Speaker Change: The first company to be approved to be a type certificate hold of aircraft certified Asaf FCB goods in.

Speaker Change: In April this year as part of the standard eight civilians. The Asa conducted its first regular audit of loops design organization compliance with applicable requirements.

Klaus Roewe: In its concluding report, the EASA delegation confirmed that Lilium's DOA was found properly working within its defined scope of approval, noting in particular the highly professional atmosphere in which the audit was conducted and the high level of competence in all matters showed by N10B. With the first piloted flight target for the end of this year, Lilium's test activities are focused on obtaining the required permit to fly the prototype Lilium, Lilium remains in continuous dialogue with the ASFA in order to converge on the safety requirements for the flight test aircraft and appropriate verification methods prior to first As an EASA design organization approval holder, Lilium is approved to undertake conformity of test articles and testing to demonstrate compliance against the applicable certification, Going forward, thanks to considerable investment in Lilium's test facilities, Lilium is also able to perform many such tasks independently of EASA with an agreed level of involvement.

Speaker Change: And it is concluding reports the Asa delegation confirmed that Lillian Doa what's found properly working whether its defined scope of approval, noting in particular, the highly professional atmosphere in which the audit was conducted and the high level of competence in all metals showed by attendees.

Williams: It was the first pilot flight targeted for the end of this year Williams test activities are focused on obtaining the required permit to fly the prototype Lillian jet.

Speaker Change: Lithium remains in continuous dialog with the ocelot in order to converge on the safety requirements for the flight test aircraft and the appropriate verification methods prior to first flight.

Speaker Change: And then the Asa design organization approval Holdup, William is approved to undertake conformity of test articles and testing to demonstrate compliance against the applicable certification basis going forward. Thanks to considerable investment in lithium test facilities. Lithium is also able to perform many such trust independent.

Speaker Change: We also within the level of involvement in recent months <unk> has significantly expanded its onsite testing capabilities in May we began the commissioning of the first two propulsion test facilities located onsite with millions headquarter campus. The two facilities, formerly used as hangers top performing engine checks.

Klaus Roewe: In recent months, Lilium has significantly expanded its on-site testing capabilities. In May, we began the commissioning of the first two propulsion test facilities located on-site within Lilium's headquarter company. The two facilities formerly used as hangars for performing engine checks on fighter aircraft are being modified for the requirements of the Lilium Electrical Jet DART design. We will be using them for aerodynamic and electrical performance evaluation of single and double propulsion units as well as as a complete multi-engine array that represents a full Lilium jet canal.

Speaker Change: Fighter aircraft are being modified for the requirements of lithium electrical jet top design.

Speaker Change: We will be using them for aerodynamic the electrical performance evaluation of single and double propulsion unit as well as a complete multi engine arrays that we present, our full <unk>. So first facilities currently has a covenant in phase already has test equipment installed at the doublet propulsion unit on the Testament to port.

Klaus Roewe: The first facility, currently in the conditioning phase, already has test equipment installed at the double propulsion unit on the test site. The propulsion facilities currently have their own 650 kilowatt DC electrical power supply, and an extension is being installed to provide up to 1.3 megawatts.

Speaker Change: <unk> facilities currently has their own 650 kilowatt DC electric power supply and that extension is being installed to provide up to one three megawatt.

Klaus Roewe: The LiliumJet eMotor has been designed to deliver an industry-leading power density of over 100 kilowatts with a weight of just over 4 kilograms. In April this year, Lilium successfully completed the final full-body wind tunnel testing at German-Dutch wind tunnel test facilities in Magnes, the Netherlands, Europe's largest wind tunnel facility. The last testing of the Lilium Jet's aerodynamic behavior at a transition and high-speed cruise with working engines and separate actuators complements the previous wind tunnel campaign conducted in 2023, which was primarily focused on hover in low-speed flights. The obtained data provides further verification of the Lilium Jet Flight Simulation Modeling that will support the safety of flight and certification campaign.

Speaker Change: So lithium just E motor has been designed to deliver industry, leading power density of over 100 kilowatt with a weight of just over four kilograms.

Speaker Change: In April this year Lilly and successfully completed the final full body wind tunnel testing at German Dutch wind tunnel tests facilities in.

Speaker Change: The Netherlands, Europe's largest wind facility.

Speaker Change: The last testing of the lithium aerodynamic behaviors at the transition and high speed cruise was working engine and separate creators complements the previous winter campaign conducted at 2023, which was primarily focused on have a low speed flight.

Speaker Change: Obtained data provides further verification of the lithium jet flight simulation modeling that will support lithium safety of flight and certification campaign millions.

Klaus Roewe: Lilium's Ammionics System Integration Test Bridge, developed and built by Honeywell, is now successfully running at the Lilium headquarters. The test rig, one of the main assets of Lilium's system integration testing, combines all avionic units and software required for delivering the LiliumJet's core avionics functions, communication, navigation, autopilot, maintenance, flight recording, and indication. Lilium has also successfully performed preliminary integration of the LiliumJet flight control system. In addition, Lilium has started construction of an advanced test facility for integration and certification testing of the LiliumJet.

Speaker Change: Millions of Unix system integration test rich developed and built by Honeywell has now successfully running at the <unk> headquarter campus.

Speaker Change: Last week, one of the main assets of lithium system integration testing combines all of you like Unix and software required for delivering the lithium jet avionics sanctions communication navigation autopilot maintenance flat recording and indication.

Lilly: <unk> has also successfully performed preliminary integration of the <unk> jet flight control system. In addition, Lilly startup construction of an advanced test facility for integration and certification testing of lithium jet designs.

Klaus Roewe: Designed in partnership with global engineering group Sigula Technologies and located at Lilium's headquarters, the facility is due to become operational in late summer 2024. The test site will house a full-size aircraft and will be used for testing of the Lilium jet flight controls, propulsion systems, and electrical power systems.

Speaker Change: Designed in partnership with Global Engineering group singular technologies, and located headquarter facilities due to become operational in late summer 2024.

Speaker Change: The test side wheelhouse full sized aircraft and will be used for testing of the lithium reps like controls propulsion system and electrical power system as part of the lithium certification campaign. The facility will be used to stimulate flight and verify the performance of the aircraft throughout multiple flight profiles alongside the beauty of the.

Klaus Roewe: As part of the LiliumJet certification campaign, the facility will be used to simulate flights and verify the performance of the aircraft throughout multiple flight profiles. Alongside the building of the first test Lilium jet, the construction of the test site represents an important step on Lilium's path towards the first flight and type certification of the Lilium jet. Covering a total area of 26,000 square feet, the test facility will comprise an aircraft mounting frame for measuring loads at moments, an airflow management system to enable representative flight conditions, and charging and cooling equipment for the aircraft's battery. Aerodynamic testing will be supported by a powerful 1.2 megawatt blower supplied by international engineering company Vyro that can simulate tailwinds of up to 40 miles per hour.

Speaker Change: First test lithium jet.

Speaker Change: The construction of the test site, we presented an important step on Williams path towards first slide.

Speaker Change: And type certification of the lithium jet.

Speaker Change: The total area of 26000 square feet. The test facility will comprise an aircraft mounting frame for measuring loads that moment and airflow management system to enable representative flight conditions and charging and cooling equipment for the aircraft's batteries aerodynamic testing will be supported by a powerful one two megawatt blower.

Speaker Change: Supplied by International Engineering company viral that can simulate across tail winds of up to 40 miles per hour, while lithium testing activities, primarily focused on compliance and verification of the serial aircraft. The two Phoenix demonstrator aircraft operated in our flight centre in South of Spain continued to provide a comprehensive.

Klaus Roewe: While Lilium's testing activity is primarily focused on compliance and verification of the serial aircraft, the two Phoenix demonstrator aircraft operated in our flight test center in the south of Spain continue to provide comprehensive data for exploring, for example, the flight characteristics. Going forward, Lilium also intends to use the Phoenix demonstrator for testing under specific stress conditions. Ongoing testing builds confidence in the Lilium Jet's projected performance, which supports our sales campaign. And this brings me to our next highlight.

Speaker Change: Data for exploring for example, William slight tweaks.

Speaker Change: Going forward lithium also intends to use the Phoenix demonstrators for testing specific stress conditions ongoing testing builds confidence in the <unk> jet projected performance, which supports our sales campaign and this brings me to our next highlight number four we are growing our auto book on the commercial.

Klaus Roewe: Number four, we are growing our order book. On the commercial front, the LiliumJet order pipeline continues to grow increasingly with firm orders that include pre-delivery payments. In total, Lilium now has an order pipeline of over 780 Lilium jets, including binding orders and MOU agreements from operators inside the United States, South America, Europe, Asia, and the Middle East.

Speaker Change: Lilian jet order pipeline continues to grow increasingly with firm orders that include.

Speaker Change: Pre delivery payments and total lithium now has an order pipeline of over 780 lithium.

Speaker Change: <unk> binding Ora and Mou agreement from operators in the United States, South America, Europe, Asia, and the Middle East customers left the look of the aircrafts are superior spacious cabin as well as the estimated range in unit economics visibly provided by US all applicable safety standards and the lithium that path to certification.

Klaus Roewe: Customers loved the look of the aircraft, the superior spacious cabin, as well as the estimated range and unit economy. Visibility provided by EASA on applicable safety standards and the Lilium Jets pass-through certification are also supporting our global sales. At the recent eBay air show, eVolare, a subsidiary of Volare Aviation, one of the United Kingdom's largest helicopter and private jet operators, announced the signing of the Binding Sale and Purchase Agreement for the acquisition of four Lilium jets.

Speaker Change: <unk> also supported our global sales effort at the recent E based air show equal out a subsidiary of rollout aviation one of the United Kingdoms largest helicopter and private jet operators announced the signing of binding sale and purchase agreement for the acquisition of Fort William debt. So purchase agreed.

Klaus Roewe: The purchase agreements include delivery schedules, guarantees, warranties, along with deposits and pre-delivery payments. We have also agreed on terms for the reservation of up to an additional 12 Lilium Jet production slots for Evolara and its customers. Based in Oxford, UK, Ivo Lahre plans to operate Lilium jets in the London area, connecting London with outer cities and the coastal areas of England.

Speaker Change: <unk> include delivery schedules guarantees warranties, along with deposit and pre delivery payments.

Speaker Change: Together with Ebola, we have also agreed on terms for the reservation of up to an additional 12 lithium jet production slots for Ebola and its customers based in Oxford UK you will allow the plant to operate lithium debts in the London area connecting London without our cities is a coastal areas of England.

Klaus Roewe: The current agreement follows a collaboration between Evolare and Lilium on network, VertiPort, and operational planning, subsequent to the initial firm agreement between Lilium and Evolare in 2022. In May, we want a firm order of 20 Lilium jets, plus options for an additional 20 with UrbanLink, the advanced aviation operator recently launched in South Florida by the U.S. UrbanLink's selection of the LiliumJet reflects the customer's preference for the LiliumJet's expected superior cabin design, range, capacity, and cost-effectiveness in the regional mission. UrbanLink plans to use its LiliumJet to link major cities such as Miami, West Palm Beach, Boca Raton, and Fort Lauderdale, with service launch targets for 2020.

Speaker Change: The current agreement follows a collaboration between <unk> and Liam on network royalty part and operational planning subsequent to the initial firm agreement between <unk> Ebola hit in 2022 in May we've under a firm order of $20 million plus options for an additional 20 with urban link see advanced aviation.

Klaus Roewe: Urban Link plans to operate from the network of Florida VertiPods that Lilium and its partners have been working on collaborating for the past five years. It also demonstrates the importance of addressing issues around infrastructure and operations. Customers appreciate having the confidence that the Lilium Jet will integrate seamlessly into the existing infrastructure and operations. Let's look at that in more detail with our next... Highlight number five, we successfully expanded the Lilium support network in KeyMarket.

Speaker Change: Our recently launched South, Florida by the U S airline better run at Regal.

Speaker Change: <unk> has found its designed and built some amazing airlines, including Jetblue and global crossing urban links collection of the lithium that reflect our customers' preference for the lithium expected superior cabin design range capacity and cost effectiveness in the region admission urban linked plans to use its lillian dredged too.

Speaker Change: Major cities, such as Miami, West Palm Beach, Boca Raton in Fort Lauderdale, which services launch target for 2026.

Speaker Change: The link to.

Speaker Change: To operate from the network of Florida diverting volume.

Speaker Change: I have been working on calibrating for the fast type yes.

Speaker Change: The urban link all of that also demonstrates the importance of addressing issues around infrastructure and operations customer appreciate having the confidence that the lilien jet will integrate seamlessly into the existing infrastructure operations.

Speaker Change: Let's look at that in more detail with our next pilot.

Speaker Change: Number five we successfully expanded the Williams' support network in key markets earlier. This year, we launched our after market service business called lithium power on integrating multiple services with partnerships already in place in several areas such as spare parts.

Klaus Roewe: Earlier this year, we launched our aftermarket service business called Lilium Power On, integrating multiple services with partnerships already in place in several areas such as spare parts management, fast charging infrastructure, and pilot training. We have continued to expand Lilium's aftermarket service, offering a geographical reach. In May, we announced an expansion of our existing partnership with Lux Aviation Group, one of the largest business aircraft and helicopter operators worldwide. The expanded partnership will leverage Lux Aviation Group's ExecuJet network of 141 fixed-based operations to create electrified ground infrastructure for the Lilium Jet in its 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.

Speaker Change: Which meant fast charging infrastructure in pilot training, we have continued to expand Williams aftermarket service offering its geographical reach in May we announced an expansion of our existing partnership with aviation group one of the largest business aircraft and helicopter operators worldwide the expanded partnership with <unk>.

Speaker Change: Rich luck obviation groups execute jet network of 141 fixed based operations to create electrified ground infrastructure for the lithium in its key markets across Europe. Initially was further sites in the middle East plant.

Speaker Change: <unk> is an industry leader in ground handling and provides first class facilities for business aircraft passengers and across the world execute <unk> extensive network will serve as a key foundation for the lithium jets intended network across the EMEA region, including fronts.

Klaus Roewe: ExecuJet's extensive network will serve as a key foundation for the Lilium Jet's intended network across the EMEA region, including As part of our plan to bring Lilium Jet flights to the south of France starting in 2026, Lilium has also teamed up with Aéroports de la Côte d'Azur and Urban V, a designer and developer of advanced air mobility networks. Building upon a strong local ecosystem and support in the region, Lilium plans to enable a network to connect the French Riviera with key destinations throughout southern France, including Monaco, Nice, Cannes, Saint-Tropez, Toulon, Aix-en-Provence, and Marseille.

Klaus Roewe: His partnership with ACA and Urban V, the first of its kind in the region, aims to establish and operate vertipods at the Nice-Côte d'Azur airport, France's second largest airport, together with Cannes-Montpellier and Golfe-du-Saint-Tropez, with further locations under consideration. Lilium is currently in advanced discussions with further local partners to create vertipods in Monaco, Sofia- To date, a leading French engineering and construction firm has agreed to connect Aix-en-Provence with a vertipod at Aix-les-Milles. The French Riviera, also known as the Côte d'Azur, is one of the world's most attractive holiday and business event destinations.

Speaker Change: Part of our plan to bring lithium direct flights to the south of France. Starting in 2026 Lilly has also teamed up with our part of.

Lilly: <unk> zero and urban designer and developer of advanced mobility networks building upon strong local ecosystem and support in the region Lillian plans to enable a network to connect the French together with key destinations throughout southern France, including Monaco needs can compete with Exxonmobil.

Speaker Change: And let's say.

The partnership with <unk> and urban leads a first of its kind in the region aims to establish an operate vertical this.

Lillian: And this quarter zero upfront second largest airport together, we've come on the <unk> and <unk> does not compete with further locations under consideration Linda was currently in advanced discussions with further local partners to create vertical Monaco Sofia antibodies to law and lets say, which I expected to be concluded before the end of the year.

Speaker Change: It is a leading French engineering and construction firm has agreed to connect Exxon Pall malls was devoted part actually mute.

Speaker Change: The <unk> also known as the quarter zinc combined some of the world's most attractive holiday and business event destinations so kudos yourselves.

Klaus Roewe: The Côte d'Azur serves as a vital transportation hub, attracting over 11 million tourists annually. As part of its U.S. network expansion, Lilium teamed up with Atlantic Aviation, a leading provider of aviation services and information. Based on the MOU, 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 U.S., including more than 30 airports within Lilium's planned launch markets of Florida, Southern California, the Northeast Corridor, and more. As part of the collaboration, Lilium at Atlantic will focus on infrastructure deployment and operations, including passenger experience, aircraft flight path, charging capabilities, passenger facilities, operating forecasting, and more.

Speaker Change: Little transportation up attracting over 11 million tourists annually.

Speaker Change: As part of its U S network expansion William teamed up with Atlantic Aviation, a leading provider of aviation services and infrastructure based on the Mou Atlantic Aviation at Lilian will work together to prepare North American upsides for the daily Objet Atlantic Aviation operates at over 100 locations across the U S.

Speaker Change: <unk> more than 30 at ports within Williams plant launch markets of Florida, Southern California, The northeast corridor and Texas.

Lilian Jet: Part of the collaborations Lilly of mid Atlantic will focus on infrastructure deployment and operations, including passenger experience aircraft flight path chartering capabilities passenger facilities operating forecast and more.

Klaus Roewe: Before handing over for Lilium's finance highlights, let me briefly introduce the newest member of our leadership team, Lilium's new CFO, Johan Mann. Many of you already know Johan from his previous role as CFO of a premium electrical vehicle manufacturer, Poles. Yuan played a pivotal role in successfully navigating Polestar through its U.S. public listing and spearheading the company's capital formation activities. Johan brings more than 25 years of international experience across multiple... Prior to Polestar, Johan held the position of CFO of Dole Food Company, where he played a critical role in the company's successful merger with Total Products and its successful IPO.

Johan Mount: Before handing over for lithium finance highlights let me briefly introduce the newest member of our leadership team Williams, New CFO Johan months with many of you already know Johan from his previous role as CFO of a premium electrical vehicle manufacturer Pollstar you want and played a pivotal role in successfully navigating poll.

Johan Mount: Thus with U S public listing and spearheading the company's capital formation activities Q1 brings more than 25 years international experience across multiple sectors. Prior to pole star <unk> held the position of CFO of Dol Food company, where he played a critical role in the company successful merger with total product and its success.

Johan Mount: For IPO at lithium we take a lot of pride in having seasoned and experienced leader and Johan continues that tradition with his experience as a public company CFO both in the U S and Europe and is experienced in fundraising and capital formation. We are delighted to have <unk> with US now at Lilian will experience of leading fine.

Klaus Roewe: At Lilium, we take a lot of pride in having seasoned and experienced leaders, and Johan continues that tradition with his experience as a public company CFO, both in the US and Europe, and his experience in fundraising and capital formation. We are delighted to have Johan with us now at Lilium, where his experience of leading financial teams is a valuable addition to the company. Johan will walk you through some more highlights and details on our successful fundraise and an update on our cash guidance. Johan, please.

Speaker Change #100: <unk> teams is a valuable addition to the company.

Speaker Change #101: <unk> will walk you through some more highlights and details on our successful fund raise and update on our cash guidance Jan Please.

Johan Meijer: Thank you, Klaus. And let me first just add that, for me, the major reason for joining Lilium was to play a leading role in advanced air mobility and the electrification of aviation. I genuinely believe Lilium is in pole position within the, with the best aircraft design, adherence to the highest safety standards, and clearest path to certification. I want to be part of this exciting development and help Lilium realize the vision of sustainable, so now to our funding and finance.

Johan Mount: Thank you Klaus and let me just add for me. The major reason for joining Lillian was to play a leading role in advanced air mobility and the electrification of aviation.

Jan: Generally believe lithium is in pole position within the industry with the best aircrafts to sign adherence to the highest safety standards and clearest path to certification I want to be part of this exciting development and help Lillian realize the vision of sustainable slight.

Speaker Change #103: So now to our funding and finance highlights.

Johan Meijer: During the past couple of months, we have made significant progress on our fundraising efforts, primarily on three. First, we recently concluded a $114 million gross proceeds capital raise, backed by both new and existing investors. Our largest shareholder Tencent continues to be supported and participated in the latest round. Second, we have made a significant advance in our funding discussions with our home state of Bavaria and the German government. They have commissioned the German state bank, KfW, to conduct due diligence on Lilium as part of the customary investment. Once the due diligence is completed, Lilium expects to receive state guarantees as security for a loan from the German state bank, most likely in the form of a convertible.

Lillian: During the past couple of months, we have made significant progress on our fundraising efforts primarily on three fronts.

Speaker Change #104: First we recently concluded a $114 million gross proceeds capital raise back.

Speaker Change #105: Backed by both new and existing investors.

Tencent: Our largest shareholder Tencent continues to be supported and participated in the latest round.

Tencent: Second we have made a significant advance in our funding discussions with our home state of Bavaria, and the German government.

Speaker Change #107: They have commissioned the German state Bank <unk> W to conduct due diligence on the limb as part of the customary investment process.

Speaker Change #108: Once the due diligence is completed lithium expects to receive state guarantees as security for a loan from the German state Bank, most likely in the form of a convertible note.

Johan Meijer: We expect a funding amount of around 100 million euros and that the diligence will take around six to eight weeks. Finally, we are advancing discussions with President Macron's administration towards a French government guarantee-backed loan, which would be non-dilute.

Speaker Change #108: We expect the funding amount of around 100 million euros and that due diligence will take around six to eight weeks to complete.

precedent Mccann: Finally, we advanced discussions with precedent Mccann's administration towards the French government guarantee backed loan which would be non dilutive.

Johan Meijer: We estimate the overall funding support will be around 200 million euros with disbursements over several years. We plan to use the funding to build high volume production facilities in France, including a final assembly line, battery pack assembly line, and maintenance. This planned capacity expansion is already taken into consideration in our business. Lilium is currently discussing potential locations for the facilities with the French regional government.

precedent Mccann: We estimate the overall funding support will be around 200 million euros with disbursements over several years.

precedent Mccann: We plan to use the funding to build high volume production facilities in France.

Speaker Change #110: <unk> final Assembly line Battery pack Assembly line and maintenance facilities.

Speaker Change #110: This planned capacity expansion is already taken into consideration in our business plan.

Speaker Change #111: Lithium is currently discussing potential locations for the facilities with French regional governments.

Johan Meijer: Lilium's Headquarters, Initial Production Line, R&D Center, and Propulsion Center will remain at the current location near me. Given the visibility on potential government-backed capital sources, along with our recent capital raise, we believe we have a liquidity roadmap for our first piloted flight later this year. Furthermore, we believe that customary pre-delivery payments will provide additional support around our longer-term funding. Lilium continues to engage in active dialogue with sovereign entities, strategic partners, prospective customers, and stakeholders for further funding initiatives.

Lithium: Lithium headquarters initial production line R&D Center and propulsion Center will remain at the current location near Munich.

Given the visibility on potential government backed capital sources, along with our recent capital raise we believe we have a liquidity roadmap for our first pilot flight later this year.

Speaker Change #113: Furthermore, we believe that customary pre delivery payments will provide an additional support around our longer term funding plan.

Speaker Change #114: Lithium continues to engage in active dialogue with sovereign entities strategic partners prospective customers and stakeholders for further funding initiatives.

Johan Meijer: Let me now turn to our current liquidity and cash. We disclosed our end of Q1 cash and cash usage in our May 23rd 6K. Our cash-in-cash equivalence balance at the end of the first quarter was 102 million euros, or 110 million U.S. dollars. Note that this does not include any of the proceeds we announced with our latest funding. Our adjusted cash spend in the first quarter was 94.7 million euros.

Speaker Change #115: Let me now turn to our current liquidity and cash burn.

Speaker Change #116: We disclosed our end of Q1 cash and cash usage in our May 20, 6K filing.

Our cash and cash equivalents balance at the end of the first quarter was 102 million euros or $110 million.

Speaker Change #117: Note that this does not include any of the proceeds we announced with our latest fundraise.

Speaker Change #117: Our adjusted cash spend in the first quarter was $94 7 million euros.

Johan Meijer: We estimate the adjusted cash spend for the first half of this year to be between $185 million. In other words, we expect the adjusted cash spend to be about 100 million euros in the second quarter of this year. Looking ahead to the remainder of 2024, we expect the second half adjusted cash spend to be slightly higher than the first, and we will provide more details in our next quarterly report. The trend is driven primarily by higher spending within our supply chain as we begin taking receipt of the various systems and components needed for the assembly of our first Lilium jet aircraft, which are now under production.

Speaker Change #118: We estimate the adjusted cash burn for the first half of this year to be between $185 million.

Speaker Change #118: And 195 million euros.

Speaker Change #119: In other words, we expect adjusted cash balance to be about 100 million euros in the second quarter of this year.

Speaker Change #120: Looking ahead to the remainder of 2024, we expect second half adjusted cash spend to be slightly higher than the first half and we will provide more detail in our next quarterly call.

Speaker Change #121: The trend is driven primarily by higher spending within our supply chain as we begin taking receipt of the various systems and components needed for assembly of our first lithium jet aircraft that are now on the production line.

Johan Meijer: We remain focused on both costs and Kash Containment, particularly in non-engineering and non-certification areas, while maintaining our pacer activities to achieve key milestones, in particular the first manned flight later. And with that, I'll hand it back to you.

We remain focused on both cost and cash containment, particularly in non engineering and non certification areas, while maintaining our pace of activities to achieve key milestones in particular, the first manned flight later this year.

Speaker Change #121: And with that I'll hand, it back to you Klaus.

Johan Meijer: Thank you, Johan. As you can see, we continue to deliver our key milestones as we progress to our manned first flight targeted to occur in late 2024 and entry into service targeted for 2020. We are well into our assembly of our first LiliumJet and will be keeping the market updated on the program over the course of the year. On the commercial front, the superior expected performance, unit economics, and comfort provided by the LiliumJet has resulted in firm orders, and we continue to convert MOUs into firm orders with pre-delivery payments.

Klaus: Thank you Johan as you can see we continue to deliver our key milestones as we progress through our meant first flight targeted to cure in late 'twenty four and entry into service targeted for 2026.

Klaus: Well into our assembly of our first million drilled and we'll be keeping the market abreast on the program over the course of the year.

Speaker Change #123: On the commercial front the superior expected performance unit economics, and comfort provided by the Williams has resulted in a firm 56 orders and we continue to convert <unk> into firm orders with pre delivery payments. We hope to show you further progress on our ongoing discussions with airlines on fleet order in the coming months.

Johan Meijer: We hope to show you further progress on our ongoing discussions with airlines on fleet orders in the coming months. On the financing front, we have already begun receiving the customary collection of pre-delivery payments in connection with pre-orders.

Speaker Change #124: The financing front, we have already begun receiving customary collection of pre delivery payments in connection with preorders. We're continuing through this final processes with a German and French governments and are also in discussions with other regions and countries on funding options and most important to us on the financing front is that continued.

Klaus Roewe: We are continuing through these final processes with the German and French governments and are also in discussions with other regions and countries on funding. And most important to us on the financing front is the continued long-term support of our largest shareholders and suppliers as we progress to entry into service. So I will conclude my comments here, and operator, can you please open the call to questions? Thank you. Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced.

Speaker Change #125: Long term support of our largest shareholders and suppliers as we progress to entry into service. So I will conclude my comments here and operator can you. Please open the call to questions. Thank you.

Operator: To withdraw your question, please press star 1 and 1 again. Please keep to one question and related follow-on. If you have additional questions, please repeat the process to get into the queue. We will now go to our first question. One moment, please. And your first question comes from the line of Savi Sith from Raymond James. Please go ahead. Hey, good morning, everyone, or good afternoon now.

Speaker Change #126: Thank you to ask a question you will need to press star one on one on your telephone and wait few names we announced to withdraw your question. Please press star one on one again, please keep to one question unrelated follow on if you have additional questions. Please repeat the process to get them.

Speaker Change #126: The keys.

Speaker Change #127: We will now go to our first question.

Speaker Change #128: While mainland please.

Unknown Attendee: I was curious about the $3 per passenger mile. I was wondering what some of the key assumptions around that metric are. Great. Thanks, Savi, for the question. Klaus, over to you.

Speaker Change #129: And your first question.

Speaker Change #129: First from the line of Savi Smith from Raymond James. Please go ahead.

Speaker Change #130: Hey, good morning, everyone.

Speaker Change #131: Oh, good afternoon, now and I was curious on the really helpful to kind of hit the <unk>.

The passenger mile.

Savi Smith: I was wondering what some of the key assumptions around that metric.

Speaker Change #133: Great. Thanks for the question costs over to you.

Klaus Roewe: Yeah, I said it's good to talk again. So it's very simple. We are using the standard metrics that are being used in aerospace, starting off with the direct operating costs. Direct operating costs are everything which is directly caused by the aircraft to be operated, like fuel, like maintenance, like crew, like air traffic controller fees.

Yes.

Speaker Change #134: You talk again.

Speaker Change #135: It's very simple we are using the standard metrics that is being used in aerospace starting off with the direct operating cost operating cost.

Klaus Roewe: To this, we are going to add the indirect cost, which also includes depreciation elements and even the cost of the airline's SG&A. And then you basically divide it by the hours that you fly per year and by the kilometers of the passengers that you are transporting. And this leads you to the values that we are announcing. So a very traditional aerospace calculation scheme, which, by the way, has been challenged by several customers who, for sure, make up their minds before acquiring our aircraft about what kind of costs they will incur and hence what kind of profit they will be able to make. I appreciate that.

Speaker Change #136: Everything which is directly caused by the aircraft could be operated like you will like maintenance like crew like air traffic controller fees.

Speaker Change #137: To this we are going to exit the indirect cost, which also includes depreciation elements and even the cost of the Ela in SG&A.

Speaker Change #138: And then you basically divided by the hour sets you have flagged a year by the kilometers of the passengers that youre transporting and this leads you to the values that we are announcing.

Speaker Change #139: So very traditional aerospace calculation scheme, which by the way has been challenged by several customers who for sure makeup there might be for acquiring our aircraft what kind of costs that we'll incur in terms, what kind of profit that will be able to make.

Klaus Roewe: Thank you. And then, if I might, on the PDPs, I think you will receive about 2 million in 2023. I was wondering if you've received any so far to date and, more specifically, as you're kind of finalizing these agreements, are you able to kind of talk about the cadence? As you know, I think most of it starts to flow through following the first flight, but I was kind of curious about what the cadence is after the first flight and like what percentages that might build through. Seb, you want to take that one and maybe Johan, you can add on too?

Speaker Change #139: I appreciate that thank you and then if I might on the.

Speaker Change #140: PDP I think youre seeing about $2 million in 2020.

I was wondering if you received any so far to date and just more so.

Speaker Change #140: As you are kind of finalizing these agreements.

Speaker Change #141: Do you think about the kind of talk about the cadence as I think most of it start to kind of flow through following first flight that I was kind of curious what the cadence is after first flight and much like what percentages that might downstairs.

Speaker Change #141: Okay.

Speaker Change #141: Sam do you want to take that risk and then maybe Johan you can add on so yes, absolutely. We are continuing to two signed sales and purchase agreements so very different from non binding them or us.

Sebastien Borel: Yeah, absolutely. We're continuing to sign sales and purchase agreements, so very different from non-binding MOUs in regards to the PDP. And we have deposit and PDP structures absolutely in line with industry standards in distributing aerospace and commercial aviation, whereby you have PDP amounts coming at milestones or time before delivery. So really, two types of milestones, depending on the market. If you're on the premium side, it's more about the milestones, as you mentioned, the first flight is going to be very important, but also type certification.

Speaker Change #142: In regards to the PDP and we have deposit and PDP structures are absolutely in line with industry standard industry being aerospace commercialization, whereby you have PDP amounts coming at.

Milestones or time before delivery, so really two type of milestone depending on on the market I see you on the premium side, it's more on the milestone as you had mentioned the first flight is going to be very important but also type certification and if you're looking more on the commercialization side as easily.

Sebastien Borel: And if you're looking more on the commercial aviation side, it's usually, you know, months or a year before delivery. Yes, I was curious, so it's sort of like... Should we be assuming meaningful PDPs in 2025 then? Absolutely, absolutely.

Speaker Change #142:

Speaker Change #143: Months of our ERP far before delivery.

Speaker Change #143: Yes.

Speaker Change #144: I was curious it sounds like it should.

Speaker Change #145: Should we be assuming no name for PDP.

Speaker Change #145: 25.

Sebastien Borel: And when you're building, you know, we are selling aircraft, you have a first deposit, which is quite limited, but then the PDPs come in. And I would say the industry average is slightly above 50% of the entire cost of the aircraft being paid prior to delivery.

Speaker Change #146: Absolutely, absolutely and when Youre bidding.

We are selling aircraft do you have a first deposit which is quite limited, but then the PDP has come in and I would say industry average or slightly above 50%.

Speaker Change #146: Of the entire cost of the aircrafts being paid prior to delivery.

Speaker Change #147: Appreciate it thank you.

Speaker Change #148: Thank you.

Operator: Thank you. Thank you. We will now go to our next question, and your next question comes from the line of Mike Crawford from B Riley Securities. Please go ahead.

Speaker Change #149: We will now go through the next question.

Speaker Change #149: And your next question comes from the line of Mike Crawford from B Riley Securities. Please go ahead.

Unknown Attendee: Thank you. You talk about the BPI finance process where you're hoping to secure 200 million euros with disbursements over several years. Is that a conservative forecast, or is there potential for more capital from that source? Mike, thanks for that question. Johan, do you want to take that?

Speaker Change #150: Thank you you talked about the DPI, France process, where youre, hoping to.

Mike Crawford: Secure 200 million euros with disbursements over several years is that a conservative forecast or is there potential for more capital from that source.

Johan Mount: Mike Thanks for the question Johan do you want to.

Johan Mount: Take that.

Johan Mount: Sure.

Johan Mount:

Johan Mount: So.

Johan Meijer: Sure. [inaudible] As you mentioned, we're in this process, and our eligibility has been confirmed. And now we're working together with BPI, the French public investment bank, on the next step. Um, it is. The quantum that we mentioned is relative to Disband and what we're ultimately eligible for. So I think that's the best guidance at this point in time. Okay, thank you. And then just the one follow-up would be that you mentioned with KFW that six to eight weeks from now to complete diligence or from the start of that process and also what the potential timeline might be for a BPI, Frank. Klaus or Johann, do you want to?

As we mentioned we're in this process our eligibility.

Speaker Change #152: Been confirmed and now we're working together with with BPI being the French public investment bank on the next steps.

Speaker Change #152: It is.

Speaker Change #152: The quantum that we mentioned.

Speaker Change #152: Relative to.

Speaker Change #153: This spend than what we are ultimately eligible for so I think that's the best guidance at this point in time.

Speaker Change #153: Okay.

Speaker Change #154: Oh, Okay. Thank you and then just one follow up would be that you mentioned with a K F. W.

Speaker Change #154: Six to eight weeks from now or the complete diligence or from the start of that process.

Speaker Change #155: And also what's the potential timeline might be for a DPI France.

Speaker Change #156: Plus or Johan do you want to.

Klaus Roewe: Yeah, I can jump in here. I mean, the six to eight weeks. I would say it's more or less from now. I mean, it's a little bit of a process to go through, right?

Johan: Take that yes, I can jump in here I mean so.

Johan: The six to eight weeks.

Johan: I would say, it's more or less from now I mean, it's a little bit of a.

Klaus Roewe: It's difficult to say with exactness, but there are a few weeks out until that customer's diligence phase is completed. So, of course, we want to respect that process. And as you know, we have strong support there from the highest level of the German government. And in regards to France, as I mentioned, we're working with BPI on next steps. And here, I think we also want to respect the process and not necessarily speculate on the timing of the French processes. All right, thank you very much. Thank you.

Johan: Ross has to go through right, so difficult to say with exact enough but.

Johan: Yep.

Speaker Change #158: Few weeks out until that customer the diligence phase.

Speaker Change #159: <unk> completed some of course, we want to respect that process and as you know we have strong support from the highest level of the German government.

Speaker Change #160: In regards to France.

Speaker Change #161: Like I mentioned, we're working with BPI on next steps and here I think we also want to respect the process and not speculate necessarily on the timing on the French process at this point.

Speaker Change #162: Alright, Thank you very much.

Speaker Change #162: Thank you. Thank you.

Operator: We'd also like to get to a couple of questions sent in and upvoted by Lilium's retail shareholders. And, by the way, thank you all for participating in the latest Q&A on the SAE platform. We had some questions on battery technology. The following were sent in. Keith N. asked, what is your confidence level in the current battery power and energy performance and safety? And Uneta D. asked, do you have any updates on the battery capacity and the size reduction? Daniel, I think you're best suited to address these questions. Yes, of course.

Speaker Change #163: We'd also like to get to a couple of questions and then uploaded by Williams retail shareholders and by the way. Thank you all for participating in the latest Q&A on the same platform.

Speaker Change #164: We had some questions on the battery technology, the following where Centene Keith asked what is your confidence level in the current battery power and energy performance in safety and <unk> do you have any updates on the battery capacity and the size reduction.

Speaker Change #164: Daniel I think you are best suited to address these questions.

Daniel Wiegand: And thanks to Onetta and Keith for those questions on the batteries. So we have a lot of confidence in the energy, power, and safety capability of our battery technology, mainly since we have gone through years of testing on all the levels from the cell to the module, pack, and aircraft level. So, first, we have flown our demonstrator aircraft for roughly five years now, and here we've been able to verify the power requirements of the aircraft. We believe that now we have a very good understanding of the requirements of the regional mission, including its reserve factors.

Speaker Change #165: Yes of course, and thanks to Olathe and Keith for those questions on the batteries.

Daniel: So we have a lot of confidence on the energy power and safety capability of our battery technology, mainly since we have gone through years of testing on all the levels from the cell to the module and pack and the aircraft level. So at first we have flown our demonstrator aircraft for roughly five years by now and yet we've been.

Speaker Change #167: Able to verify the power requirements of the ethane we believe that now we have a very good understanding of the requirements of the regional mission, including its reserve factors and as you know we are designing our batteries to support our regional admission of 175 kilometers or around 110 minus operational.

Daniel Wiegand: And as you know, we are designing our batteries to support a regional mission of 175 kilometers or around 110 miles of operational range at the entry into service of the aircraft. Now, the power, energy, and cycle life performance of the battery cell technology that we are using have been extensively tested and confirmed through independent third-party testing. But also, during the last four years since we selected that technology, we have done an immense amount of testing of those cells and the technology and chemistry in-house here at Lilium.

Speaker Change #168: Range at the entry into service of the aircraft now.

Speaker Change #169: Now the power energy and cycle life performance of the battery cell technology, which we are using that one has been extensively tested and confirmed through independent third party testing, but also during the last four years since we selected that technology.

Speaker Change #170: <unk> also done an immense amount of testing of those talents in the technology and chemistry in house here at linear.

Daniel Wiegand: Since we selected this technology, major automotive players like Porsche, Mercedes, or GM have also moved towards using similar technologies with a higher content of silicon in the anodes to improve the fast charging and the energy performance of the cell.

Speaker Change #171: Since we selected this technology at major automotive players like Porsche mosquitoes Archie M. If also move towards using similar technologies with a higher content of silicon in the analytics to improve the SaaS charging in the energy performance of the cells.

Daniel Wiegand: Now on the battery pack level, we are also, those packs are designed to meet the EASA standard, and those standards are very stringent safety requirements regarding shock resistance, heat resistance, containment of fires, and redundancy. We have also, at the module and pack level, performed extensive TAP campaigns with a focus on safety, performance, and redundancy. And as I just described, those battery packs are now in production, and they're in production on our final assembly line at our headquarters.

Speaker Change #171: Now on the battery pack level.

Speaker Change #172: We are also.

Speaker Change #173: Those packs are designed to meet our standards and those standards are very stringent safety requirements regarding shock resistance regarding heat resistance containment of fires and redundancy and we have also on the module and pack level performed extensive test campaigns with a focus on safety.

Speaker Change #174: <unk> performance and redundancy and Thats just described those battery packs are now in production and they are in production in our final Assembly line at our headquarters now these tests represent an important step towards validating that the lithium battery even meet safety requirements.

Daniel Wiegand: Now, these tests represent an important step towards validating that the LiliumJet battery will meet its EASA safety requirements. Of course, we have also made sure that we have an adequate supply of those cells, both for the initial certification and also for the subsequent industrial ramp-up. We are pursuing a dual sourcing strategy, which is very consistent with the best practices of what you would find in the EV industry and other industries. Now, if you want to find out more about the technology, I would highly recommend you to watch our battery webinar, which we did in November last year and which you can find on our website.

Speaker Change #175: Of course, we have also made sure that we have an adequate supply of those cells.

Speaker Change #176: For the initial certification, but also for the subsequent industrial ramp up.

Speaker Change #177: We are pursuing a dual sourcing strategy, which is.

Speaker Change #178: Consistent with the best practice of what you would find in the industry and other industries now if you want to find out more about the technology.

I'd highly recommend you to watch our battery webinar, which we did in November last year, and which you can find on our website.

Daniel Wiegand: Now to the second question, with regard to the battery capacity update, one of the great features of the LiliumJet is the opportunity to integrate the latest technology on an ongoing basis through battery pack replacements in the future. Historically, the energy density of battery cells has improved by around 6% every year. And that's why we expect that, through integrating the latest technology, it will be possible to extend the range significantly in the years after entry into service.

Speaker Change #179: Now to the second question with regards to the battery capacity update one of the great features of the lithium Chad is the opportunity to integrate the latest technology on an ongoing basis through battery pack replacements in the future.

Speaker Change #180: Historically, the energy density of battery cells has improved by around 6% every year and Thats why we expect that through integrating the latest technology. It will be possible to extend the range significantly in the years offer entry into service and why is the generation one technology is in production now.

Daniel Wiegand: And while the Generation 1 technology is in production now, some of our team members, myself, but also, together with our battery technology partners, we are already working on next-generation battery technology. Great. And while we're on the technical topic, Daniel, we also had a few questions on the trade-offs between the size of the cabin and the performance of the aircraft. And maybe you can address that. Yeah, that's a great one.

Speaker Change #181: Some of our team members myself, but also together with our battery technology partners. We're already working on next generation battery technologies.

Daniel: Great and while we're on the tactical topic. Daniel We also had a few questions on the tradeoffs between the size of the cabin and the performance of the aircraft and maybe you can address that too.

Daniel Wiegand: So, as many of you know, we have the largest cabin in the eVTOL sector. And that's tremendously important, because you make 100% of your revenue from the cabin of the aircraft. On the other hand, a larger cabin adds weight and also drag to an aircraft. Hence, the larger the cabin and payload, the more revenue you can make on the one hand, but only provided you can still offer an attractive range to the customer for this payload.

Daniel Wiegand: Yes, that's a great one so as many of you know we have the largest Kevin in the retail sector and that's tremendously important because you make 100% of your revenue with the cabin of the aircraft.

Speaker Change #183: On the other hand, a larger cabin at wave and also a drag to an aircraft.

Speaker Change #184: Hence the larger the cabin and payload the more revenue you can make on the one hand, but only provided you can still offer an attractive range to their customer for this payload. So and every aircraft design. The science of the cabin is therefore, a compromise between the range and on one hand on the other hand, how much.

Daniel Wiegand: So in every aircraft design, the size of the cabin is, therefore, a compromise between the range and, on the one hand, how much revenue you can make per mile flown or per kilometer flown.

Speaker Change #184: Revenue you can make.

Speaker Change #185: <unk> flown or per kilometer zone.

Daniel Wiegand: Now, our ducted electric vector thrust, the DEVT technology, and its associated superior cruise efficiency compared to other eVTOLs allow us to fly a larger cabin with all its penalties and still have higher cruise efficiency than our peers. This is mainly due to the fact that our DEVT technology achieves higher efficiency in cruise flight. We then decided to trade this increased efficiency partially into a larger cabin, and this, in turn, enables us to carry more passengers and to ultimately get the best unit economics in our sector. So, it's basically a prime example of how technology enables an improved economic. Thanks, Daniel. And Sharon, maybe we can go back to the questions online.

Speaker Change #186: Now our decade electric vector thrust that <unk> technology, and its associated superior cruise efficiency compared to other E vehicles.

Speaker Change #187: Allows us to fly a larger cabin with OLED penalties and still have a better crews efficiency than our peers.

Speaker Change #187: This is mainly due to the fact that our <unk> technology achieved a higher efficiency in crude side.

We then decided to trade this increased efficiency partially into a larger cabin ambition in turn enables us to carrying more passengers and to ultimately get the best unit economics in our sector. So it's basically a prime example of how technology enabled and improved economics.

Danielle: Great. Thanks Danielle.

Speaker Change #192: Sure and maybe we can go back to the.

Speaker Change #189: The questions online.

Speaker Change #189: Kim.

Daniel Wiegand: Thank you. We will take your next phone question. And your next question... comes from the line of Bill Peterson from J.P. Morgan. Please go ahead. Yeah, hi, good afternoon.

Speaker Change #190: We will take our next phone question.

Kim: And your next question.

Kim: Comes from the line of Bill Peterson from Jpmorgan. Please go ahead.

Unknown Attendee: Thanks for taking the questions. I wanted to ask my first question about testing. Can you speak to the capabilities of your test facility under construction when it comes out later? Will you have all the test capabilities in-house, or will there be aspects such as that wind tunnel testing you spoke about that you're relying on third parties? I'm wondering if this is future proof for future variations of aircraft? I guess, you know, when you're thinking about certification, is EASA, you know, able to accept results from the simulator versus the actual or some combination, just a little bit more on the testing. Thanks for the question, Bill. Klaus and Daniel, over to you.

William Chapman Peterson: Yes, hi, good afternoon. Thanks for taking the questions I wanted to ask my first question about testing.

Speaker Change #193: Can you speak to the capabilities of your test facility under construction.

Speaker Change #194: When it comes on later will you have all the test capabilities in house or will it be aspects such as that one tunnel testing you spoke to that you're relying on third parties I'm wondering if this is future proof for future generations of aircrafts.

Speaker Change #194: And I guess.

Speaker Change #195: When youre thinking about certification as a asset.

Except results from simulator versus actual or some combination just a little bit more on the packaging side great.

Speaker Change #195: Great. Thanks for the question Bill Klaus and Daniel over to you.

Daniel Wiegand: Yeah, I can take it. Hi Bill. So the answer is yes and no. We are not testing everything. We are testing a large part of the key components, but we are for sure also relying on tests made by our suppliers. Many of the components in aerospace come from certified suppliers, and they come along with the so-called DDPs, which is Design and Declaration of Design and Performance.

Daniel: Yeah, I can take a hybrid so the answer is yes, and no. We are not testing everything we are testing the large part of the key components, but we are for sure also relying on tests made by our suppliers.

Daniel: Many of the components and aerospace are coming from certified suppliers as they come along with so called D piece, which is designed and declaration of design performance and they are based off test, which has been conducted by US all suppliers, who are eligible to conduct those tests regarding lillian.

Daniel Wiegand: And they are based on tests that have been conducted by those suppliers who are eligible to conduct those tests. Regarding Lilium, you know that we obtained our DOA late last year. And this DOA comes along with a lot of privileges, such as that we can do a lot of tests in-house. And for sure, we are focusing on the key ingredients, the most important one being the aircraft. But we have a so-called test cascade or test pyramid, which starts from the lowest level of components.

Speaker Change #196: You'll note that we obtained our Doa late last year and this deal comes along with a lot of privilege is such as that we can do a lot of tests in house and for sure. We are focusing on the key ingredients is the most important one being the aircraft, but we have a so called test cascade or test to remit, which starts from the law.

Speaker Change #197: <unk> level of components and then you go through sub system level system level and in the end you are coming to aircraft level.

Daniel Wiegand: And then you go through subsystem level, system level, and, in the end, you come to aircraft level. At aircraft level, you do ground tests, and you also do flight tests, with flight tests, for sure, being the most prominent examples.

Speaker Change #198: <unk> revenue do ground tests and you also do a flight tests in flight test for sure being the most prominent examples.

Speaker Change #199: We have basically on all the key components, let's take the motors as an example.

Speaker Change #199: We have test benches, we could do the same for batteries by the way where you start at very low component level than we have integration test benches, where we combine for example modules and battery packs and we see.

Daniel Wiegand: We have basically all the key components, let's take the motors as an example. We have test benches; we could do the same for batteries, by the way, where you start at a very low component level. Then we have integration test benches where we combine, for example, motors and battery packs, and we see how both components are performing independently if we connect them together, if they still meet the requirements that we want them to meet. And finally, it goes to the so-called engineering ground test bench, which is, in fact, a real aircraft. You may know this from the aerospace industry as the so-called iron bird, where all components are fitted together.

Speaker Change #199: We know how both components are performing independently if we connect them together.

Speaker Change #200: <unk> meets the requirements that we want them to meet and finally it goes to the so called engineering ground test bench, which is in fact real aircrafts you may notice from the aerospace industry is a so called iron, but we're all components of fitting together. We also have integration test ventures for the whole avionics systems.

Daniel Wiegand: We also have integration test benches for the whole avionics system. But finally, the one where everything comes together is at the aircraft level. So all the key ingredients, starting from subcomponent level, are done in-house. We rely on a lot of suppliers because we just don't want to do this, and we don't want to invest unnecessarily in test benches. For example, when you test wheels and tires, you need a dyno. Dynos are very expensive, and nobody is better placed to run tests on the dyno than the wheel and tire supplier.

Speaker Change #201: Finally, the one where everything comes together is on the aircraft level. So all the key ingredient.

Speaker Change #202: Got it from sub component level and then in the house, we rely a lot of suppliers because we just don't want to do this and we don't want to invest unnecessarily.

Daniel Wiegand: But everything that really matters to the performance of the aircraft and the key functionalities of safety is done in-house, and it's already in place, by the way. Okay, thanks.

Speaker Change #203: And test benches for example, when you test wheels and tires you need the dyno diners are very expensive and nobody is better placed than running tests on the diners in the wheel and tire supplier.

Speaker Change #204: But at least seeing which with the metals to the performance of the aircraft is the key functionalities of the safety that's done in house and it's already in place by the way.

Speaker Change #204: Yes.

Speaker Change #204: Yeah.

Unknown Attendee: And my second question, just high level, is how we should think about the use of cash for next year. So I guess, excluding potential PDPs, how should we think about CapEx, supplier payments, operating expenses, etc., embedded in that is like, what kind of additional hiring do you need to do for testing and certification next year? You know, when the supplier payments begin rolling off, just even directionally, up, down, flattish for the use of cash. Johan, I'm going to take, Yeah, okay.

Speaker Change #205: Okay. Thanks, Thanks for that my second question, just I wanted to talk high level, how we should think about use of cash for next year. So I guess excluding potential PDP.

Speaker Change #206: How should we think about capex supplier payments operating expenses embedded in that is like what kind of additional hiring do you need to do for testing and certification next year.

Speaker Change #206: When the supplier payments begin rolling off.

Speaker Change #206: Even directionally up down flattish for use of cash next year.

Speaker Change #206: Johan.

Johan: I'll take that.

Johan Meijer: Appreciate the question. I mean, we're not guiding to next year at this point in time. As we mentioned in the script, right, we're expecting the second half, but just the cash gun for this year to be slightly higher than the first.

Speaker Change #207: Yeah, Okay I appreciate the question.

Speaker Change #208: We're not guiding to next year at this point in time.

Speaker Change #208: We.

Speaker Change #208:

Speaker Change #209: As we mentioned in the script right, we're expecting the second half adjusted Kashagan for for this year to be slightly higher than the first.

Johan Meijer: And so we're not guiding on the specifics built for next year. I mean, we can talk about some of the operational milestones and what that means to help give some flavor. And Klaus, maybe I'll hand it back to you to talk about what's on the docket for next year from that perspective. Yeah, as you know, by the end of this year, we are going to fly. So you can imagine that the bulk of the engineering effort should be behind us for sure. There will be learnings along with the flight test activities.

Speaker Change #210: So we're not guiding on the specifics build for next year I mean, we can probably we can talk about some of the operational milestones and what that means to help give some flavor and cloud maybe I'll hand, it back to you to.

Talk about what's on the docket for next year from that perspective.

Speaker Change #211: As you know by the end of this year, we are going to fly. So you can imagine that the bulk of engineering effort should be behind us for sure there will be learnings along with a flight activities.

Klaus Roewe: However, as we are preparing to certify in 26, and also we will have a bunch of customer deliveries in 26, you can imagine that the nature of investment is going to turn from engineering-related CAPEX, like for test laboratories, it's going much more into the direction of industrial investment, which is largely building up production capabilities and better surveillance of our supply chain. So, as Johan said, for sure, we have a plan of what we want to do.

Speaker Change #212: However, as we are preparing to certify.

Speaker Change #212: Six.

Speaker Change #213: Also we will have a bunch of customer deliveries in 2006, you can imagine that the nature of investment is going to turn from engineering related capex like protest laboratories.

Speaker Change #214: It's going much more into the direction of industrial investment, which is largely building up production capabilities.

Speaker Change #215: So vans up our supply chain, so as the onset.

Speaker Change #216: For sure we have a plan on what we want to do we have a plan for the financial planning.

Klaus Roewe: We have a plan for the financial planning. We also have a plan for the headcount that we need and what nature of headcount we need. We are not guiding on it yet, but you can imagine that the nature of the spend will be fundamentally different from next year onwards, and for sure, also afterwards.

Speaker Change #217: Also have a plan for the head count that we need and what nature of head count we need.

Speaker Change #218: We're not guiding on it yet.

Speaker Change #218: But you can imagine that the nature of the spend will be fundamentally different.

Speaker Change #219: Next year onwards, and first of all also afterwards.

Klaus Roewe: Thank you for sharing your insights. Thank you. We will now take the next question, and your next question comes from the line of Austin Moeller from Canonical Genuity. Please go ahead. Hi, good morning.

Speaker Change #220: Thank you for sharing insights.

Speaker Change #221: Thank you.

Speaker Change #222: We will now take the next question.

Unknown Attendee: Thanks for taking the questions. Just my first question here: do you see any political risk, just given Macron's administration is, Are you currently looking to do a SNAP election and how that may impact the loan and the agreement there in any way? Yeah, great question, Austin. Klaus Johann.

Austin Nathan Moeller: And your next question comes from the line of Austin <unk> from Canaccord Genuity. Please go ahead.

Austin Nathan Moeller: Hi, good morning, Thanks for taking the questions. Just my first question here do you see any political risk just given macrons administration is.

Speaker Change #224: Currently we're looking to do a snap election, and how that may.

Speaker Change #225: Impact the the loan and on the agreement there in any way.

Speaker Change #226: Yes, great question Austin.

Speaker Change #226: <unk>.

Klaus Roewe: I can start. So, first of all, it's brand new information. Our prime interlocutor, as Johan was saying before, is the Public Investment Bank of France. So here we are in the process of execution after we have been found eligible for funding in France to just go through the process. You may have seen, we have the direct backing directly of President Macron, who is fully aware of what we are doing, and I had the chance to meet him just three weeks ago and have a personal discussion with him. And we all know that his role is not at stake, the president's role.

Speaker Change #227: I'll take that.

Speaker Change #228: I can start so first of all.

Speaker Change #228: It's brand new information or primarily quota as Johann was saying before is.

Speaker Change #229: The public investment bank of France. So here, we are on the process of executing after we have been felt eligible for funding in France to go through the process.

Speaker Change #229: May have seen we have here the backing directly of President Mike Hall was fully aware of what we are doing on the hits a chance to meet him just three weeks ago and they have a positive discussion with them and we all know that his role is not let's take the president's role.

Klaus Roewe: We all can, and I don't want to participate in speculations, but when you read the press, basically what President Macron is doing, he's trying to reaffirm the government and sidelining basically the right side through this process. We hope for sure he will be successful with it. However, with the overall intention of the country to attract projects like Lilium, to have technology in the country, to have employment in the country, I'm sure it's not going to change as an intention. Would there be a change of key players? We just don't know it. Could it impact the timeline?

Speaker Change #230: And I don't want to participate and speculations, but when you read the press basically what Presidente Black Hawk is doing is trying to reaffirm the government.

Speaker Change #231: Sidelining basically the right site by this process.

Speaker Change #232: We hope for sure he will be successful with it.

Speaker Change #233: The overall intention of the country to attract.

Speaker Change #234: Projects like lithium to have technology in the country to have employment in the country.

Speaker Change #235: Sure, it's not going to change as an intention would there be change of key players. We just don't know it could it impact timelines, we don't know it but as we speak we have no negative or adverse feedback.

Klaus Roewe: We don't know it. But as we speak, we have no negative or adverse feedback, and we believe that France is a perfect point for us for many reasons, like lots of experience, industry resources, and a perfect marketplace. This is not going to change because of political considerations.

Speaker Change #236: We believe that France.

Speaker Change #237: <unk> is a perfect point for us for many reasons like lots of experienced industry resources perfect marketplace. This is not going to change by political considerations and I think also lithium is a perfect case for France, and it's also not going to change my political considerations whatever they maybe.

Johan Meijer: And I think Lilium is also a perfect case for France, and it's also not going to change because of political considerations, whatever that may be. And I can just maybe just add to that, just to say, the, as I mentioned, the dialogue with BPI continues, and we continue to receive positive feedback. So things are continuing to move forward.

Speaker Change #238: And I can just maybe just add to that just to I mean the.

Speaker Change #238: As I mentioned the.

Speaker Change #239: The dialogue with BPI continues if we continue to receive positive feedback so things are continuing to move forward.

Speaker Change #239: And.

Klaus Roewe: You know, Klaus alluded to this. I would expect that investing in industrial assets, especially those that are high tech and emission-free, like the ones Lilium is providing, and creating jobs should be attractive to whoever comes into power there. That's helpful. And just to follow up, are there any updates from Goshen and Inovat on the Volta 1 and Volta 2 factories being built in Slovakia and the ramp-up in the supply chain there to support your new battery? Klaus, you want to take this one? Yeah, no, there is not necessarily an update.

Speaker Change #239: No.

Klaus: Klaus alluded to.

Speaker Change #240: I would expect that investing into industrial assets, especially those that are high tech and emission free once.

Klaus: Once lithium on Friday, and creating jobs should be attractive to whoever comes into power there. So.

Speaker Change #240: Sure.

Speaker Change #241: That's helpful and just a follow up are there any updates from gosh and you know that on the Volta one in Boston two factor is being built in Slovakia, and the ramp up in the supply chain there to support your new battery.

Speaker Change #241: Cost you what it takes us one.

Klaus Roewe: And I have to say probably not needed because we have our agreement with them in place. We are going through the process. We sent quite a while ago the precise specifications of the batteries that we want to have.

Speaker Change #242: No that is not necessarily any update and I have to say probably not needed because.

Speaker Change #243: We have our agreement with them in place we are going through the process.

Speaker Change #244: We have for quite a while ago the precise specifications.

Speaker Change #245: The batteries that we want to have so first of all.

Klaus Roewe: So first of all, they are going, as Daniel said before, because we pursue a dual sourcing, if not in the long term, triple or multiple sourcing approach. So they are heavily in the work to start delivering the first batteries with the current chemistry to us. We have also sent a specification, and we have received proposals from them on a next-generation battery that we have different opportunities with. One would be another capacity increase to further improve our range, but also cost optimization on the battery side, which is also in our interest.

Speaker Change #245: We're going as Daniel said before because we pursue dual sourcing if not on the long term triple a multiple sourcing approach.

Speaker Change #246: They are heavily in the work to start delivering the first batteries was the current chemistry to us.

Speaker Change #247: We have also sent a specification that we efficacy proposal from them on our next generation.

Speaker Change #248: Battery that.

We have different opportunities with one would be another capacity increase to further foster our range.

Speaker Change #249: But also cost optimization on the battery side, which is also in our interest and also here we are going to receive the first test estimates.

Klaus Roewe: And also here, we are going to receive the first test specimens in the near future. So the agreement is in force. The collaboration with InnoBud and Goshen is excellent.

Speaker Change #250: In the near time so.

Speaker Change #251: The agreement is in.

Speaker Change #252: <unk> is a collaboration with <unk> and Goshen is excellent.

Speaker Change #253: And we are very happy not only to have them as a second source, but also benefiting.

Speaker Change #254: From the technology development and <unk> teams for the technology developments, which they have.

Klaus Roewe: And we are very happy not only to have them as a second source but also benefiting from their technology development and their big teams for technology development, which they have. Excellent, that's very exciting for the detail. Thank you. Once again, if you would like to ask a question, please press stars 1 and 1 on your telephone keypad.

Speaker Change #255: Excellent that's very very exciting.

Speaker Change #255: <unk>.

Speaker Change #256: Thank you.

Speaker Change #257: Once again, if you would like to ask a question. Please press star one on one on your telephone keypad.

Speaker Change #258: So while we wait we have time for another retail question.

Operator: Tim B. asked, could you share your insights from the expo and the conversations you've had? This would be eBase in Geneva and ILA, the Berlin Air Show last week. Klaus, you were at both. You'd be perfect to answer this question. Yeah, that's a great question, Tim.

Speaker Change #259: Can be asked could you share your insights from the Expo in the conversations you've had this would be E based in Geneva and.

Speaker Change #260: The Berlin Air show last week.

Speaker Change #261: So you were at both.

Speaker Change #262: Perfect to take this question.

Speaker Change #263: That's a great question, Tim and it's not only the base. We had it was also the Ila and we are in preparation of the Farnborough International Air show, which is due in July.

Klaus Roewe: And it's not only the eBase we had; it was also the ILA, and we are in preparation for the Farnborough International Air Show, which is due in July. Regarding eBase, this was a very special one for us, as it was Lilium's largest ever attendance at eBase. And if you were there, our exhibition booth was really looking outstanding, and it was just situated directly at the show's entrance. So everybody had to pass by it.

Speaker Change #264: Regarding E base. This was a very special one for us as it was <unk> largest ever attendance at ebay and if you have been there our exhibition Booth was really looking outstanding and it was just situated directly at the shows entrants so everybody had to pass by.

Klaus Roewe: The full-scale show jet was on view for all to see. We also had the kind of room to play that I would call it. The full-fledged simulator was there, and we had a lot of high-level attendants flying it so that we could have people looking in from outside. The eBase is a premier show for business aviation, as you know. And we had the opportunity to engage with numerous industry leaders, regulators, and customers in the sector. I have to say I was really proud. I cannot give you names for sure; that's confidential.

Speaker Change #264: The full scale show that was on view for all to see.

Speaker Change #265: We also had to kind of.

Speaker Change #268: Room to play I would call. It the full flight simulator was there and we had a lot of high level attendants flying at that we could have people looking in from outside.

Speaker Change #266: The ebay as a premier show for business Aviation as you know and we had the opportunity to engage with numerous industry lead us regulators and customers in the sector I have to say I was really proud I cannot give you named special Thats confidential.

Klaus Roewe: But we had the CEOs of some of the biggest airlines in the world, and they were completely engaged with us. We also, for sure, had several announcements at the eBase. Most of all, the sale and purchase agreement with Evolare for another four-Lilium jet with potential deliveries of up to 12 additional aircraft. We extended our infrastructure partnership with Lux Aviation, which is very important for airports in Europe and in the Middle East.

Speaker Change #267: But we had to Ceos of some of the biggest airlines in the world.

Speaker Change #267: And they were completely engaged with us.

Speaker Change #269: Also for sure had several announcements at the ebay's most of all.

Speaker Change #270: And purchase agreement with equal lot of Nova for lithium that with.

Speaker Change #270: With potential deliveries of up to 12 additional aircraft.

Speaker Change #271: We extended our infrastructure partnership with Lux Aviation, which is very important for ports in Europe and the middle East.

Klaus Roewe: The agreement with partners on the French Riviera, with Urban B and then ACA, was announced, and this is going to support the Lilium jet operation with VertiPort. In Berlin, it was a bit different. So the emphasis on the ILA is on the one side on defense, which is for sure not for us, but it's more the commercial market.

Speaker Change #272: Agreement was part of that is essentially give up.

Speaker Change #272: <unk>.

Speaker Change #273: Also announced and this is going to support that operation with royalty parts.

Speaker Change #273: In Berlin.

Speaker Change #274: It was a bit different so the emphasis on the Ila is on the one side on defense, which is special and not for us, but it's more of a commercial market.

Klaus Roewe: And again, we had tons of traction here. But more important for us was that Chancellor Scholz paid us a visit. And when you know how this works, he had a very stringent schedule in terms of how much time, how many minutes he could spend on each stand.

Speaker Change #275: And again, we had tons of traction here are more important for US was that chancellor shows paid visits.

Speaker Change #276: And when you know how this works you hit the very string and schedule.

Speaker Change #277: In terms of how much time, how many minutes he can spend an extent and he was only foreseen a for a short while and outside of a cough.

Klaus Roewe: And he was only foreseen for a short while and outside of our aircraft. But he stayed, I would say, between two and three times the time he had on his agenda. So we messed up everybody else's plans, but we didn't care.

Speaker Change #278: But his state I would say between two and three times the time yet on this agenda, we messed up everybody else's agenda, but we didn't care and even was very excited to go inside the aircraft and I had a great conversation with him. He was really interested also on our progress and he really took the time and gave us his commitment that he is fully supportive.

Klaus Roewe: And he was even very excited to go inside the aircraft. And I had a great conversation with him. He was really interested in our progress, too, and he really took the time and gave us his commitment that he was fully supportive of what we were doing. This is exactly what Germany as a leading industry country needs, but it's also what the planet needs for decarbonization. So Chancellor Scholz was full of praise for what we are doing. And it was a very proud moment also for Lilian to have him at our booth and spend so much time with us.

Speaker Change #279: What we are doing this is exactly what Germany is a leading industry country needs, but its also whats the planet needs for decarbonization.

Speaker Change #279: No chance.

Speaker Change #280: It was full of praise for what we're doing and it was a very proud moment also for you to have our booths and spending so much time with us.

Klaus Roewe: FIIA, I think, will be very similar, but you will also see us coming over the pond. So we will have lots of presence at the NBAA later in the year in Las Vegas, but also attend a couple of other events. So we are going to bring one of our mock-ups over, and we hope to have many of you taking the chance and paying us a visit there. Great, thanks Klaus. And Sharon, any additional questions?

Speaker Change #281: I think it will be very similar but you will also see us coming.

Speaker Change #282: Although the pumps. So we will have lots of presence at the NBA. A later in the year in Las Vegas, but also attending to a couple of other events. So we are going to bring one of our markups over and we hope to have many of you.

Speaker Change #283: Taking the chance and.

Paying us a visit there.

Speaker Change #284: Great. Thanks cost sharing any additional questions.

Speaker Change #285: Currently no further questions. Okay. Great. So this concludes our first quarter 2024 business update we look forward to speaking with you before our next quarterly update in August please check out our website for.

Operator: There are currently no further questions. Great. So this concludes our first quarter of 2024 business update. We look forward to speaking with you before our next quarterly update in August. Please check out our website for investor and industry events we'll be attending. Hopefully, we'll see you in July at the Farm Bureau air show.

Speaker Change #286: Investor and industry events, we'll be attending hopefully we'll see you in July at the Farnborough Air show and in the Meanwhile, if you have any questions. Please reach out to Williams Investor Relations team. Once again, thank you for participating today.

Klaus Roewe: And in the meanwhile, if you have any questions, please reach out to Lilium's investor relations. Once again, thank you for participating today. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music, ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

Speaker Change #287: Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Yes.

Speaker Change #287: [music].

Speaker Change #287: Yes.

Speaker Change #287: [music].

Speaker Change #287: Yes.

Okay.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Yes.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: Sure.

Speaker Change #287: [music].

Speaker Change #287: Sure.

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Yes.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: Yes.

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: Yes.

Speaker Change #287: Yes.

Speaker Change #287: [music].

Speaker Change #287: Sure.

Speaker Change #287: [music].

Speaker Change #287: Yes.

Speaker Change #287: Yes.

Speaker Change #287: [music].

Speaker Change #287: [music].

Okay.

Speaker Change #287: Sure.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Yes.

Speaker Change #287: Yes.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Great.

Speaker Change #287: Sure.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: Okay.

Speaker Change #287: Okay.

Speaker Change #287: Right.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: Okay.

Speaker Change #287: Yes.

Speaker Change #287: Thank you.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: Okay.

Speaker Change #287: [music].

Speaker Change #287: Thanks.

Speaker Change #287: Okay.

Speaker Change #287: Yes.

Speaker Change #287: [music].

Speaker Change #287: Yes.

Speaker Change #287: Okay.

Speaker Change #287: Sure.

Speaker Change #287: [music].

Speaker Change #287: [music].

Speaker Change #287: Yes.

Speaker Change #287: [music].

Speaker Change #287: Okay.

Speaker Change #287: [music].