Lotus Tech Growth Strategy

KEY SUMMARY FINANCIAL FORECASTS US$ billion 1,2 2023E 2024E 2025E Topline expected to grow at a ~150% CAGR in 2023E-2025E, as Lotus Tech launches Type 133, and Eletre and Emira continue to ramp up Gross margin expected to improve to - ~21% 23% in medium-term 2025, Revenue ~1.2-1.5 ~5.8-6.2 ~8.2-8.6 driven by improvement in operational efficiency and economies of scale as delivery volume ramps up Gross profit ~0.2-0.3 ~1.0-1.2 ~1.7-1.9 Target EBITDA to turn positive with margin >5% by 20253 Gross margin ~14.0% 16.0% ~18.0% 20.0% ~21.0% 23.0% Source: Lotus management estimate Note: The financial forecast assumes financing of US$223mm from the LCAA Trust and additional US$500mm total fundraise in 2023 and 2024. If the Company is unable to raise sufficient amount of cash from the proposed business combination transaction and additional financings, the Company intends to seek alternative financing following the closing of the business combination. If such amounts are not available to the Company on acceptable terms, such amounts may not be raised and the financial forecast set forth herein would be inaccurate 1. 6.96 USD/RMB exchange rate used. Financials are based on the assumption that Lotus Tech and Lotus UK will complete the buildup of the Global Commercial Platform pursuant to the Master Distribution Agreement 2. Latest financial projections represent the updated version of forecasts prepared and shared with LCAA by Lotus Tech's management in June 2023. The updated forecasts reflected comprehensive assessment of the status of recent supply chain disruption related to certain EV components, which is expected to cause a delay in vehicle deliveries, and the current robust demand supported by a cumulative orderbook of approximately 7,000 Eletre orders globally as of 30 June 2023, among other considerations 3. EBITDA is a non-GAAP financial measure and represents net loss or gain before income tax expenses, interest expenses, depreciation and amortisation. It should not be considered in isolation or as alternatives to measures derived in accordance with GAAP; EBITDA margin is expected to be higher after 2025, in years when production level and sales volume are relatively stable 44 LOTUS TECH

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