Aston Martin Lagonda Global : H1 2021 Results - Press Release

28 July 2021

Aston Martin Lagonda Global Holdings plc

Interim results for the six months to 30 June 2021

• • Significantly improved performance, in line with expectations
• Revenues more than trebled and adjusted EBITDA improved by £138m vs. H1 2020
• • Strong pricing dynamics for GT/Sport and >1,500 DBXs delivered
  • • Excellent progress with Project Horizon transformation plan

£m	H1 2021	H1 2020	% change	Q2 2021	Q2 2020	% change
Total wholesale volumes1	2,901	895	224%	1,548	317	388%
Revenue	498.8	146.0	242%	274.4	57.2	380%
Adjusted EBITDA2	48.8	(89.0)	n.m.	28.1	(50.9)	n.m.
Adjusted operating loss2	(36.0)	(145.5)	n.m.	(20.7)	(78.5)	n.m.
Operating loss	(38.0)	(159.3)	n.m.	(22.7)	(91.4)	n.m.
Loss before tax	(90.7)	(227.4)	n.m.	(48.5)	(117.3)	n.m.
Net debt2	791.5	751.0		791.5	751.0

1 Number of vehicles including specials; 2 For definition of alternative performance measures please see Appendix; 3 Adjusting items are detailed in note 4 of the Interim Financial Statements

Financial highlights

• Wholesales1 more than trebled to meet demand; delivered >1,500 DBXs representing over half of vehicles sold
• • Q2 showed sequential improvement on Q1 and GT/Sports wholesales more than doubled year-on-year
• Revenue increased 242% to £499m largely due to substantial growth in wholesales and strong pricing dynamics as completed supply to demand rebalance for GT/Sport in Q1
• Adjusted EBITDA improved by £138m half-on-half to £49m with a 10% margin reflecting improved trading, Specials deliveries and some initial Project Horizon efficiencies and despite a £5m trade debtor write down in Q2 related to legal action as announced on 22 June; excluding this, Q2 adjusted EBITDA margin was 12%
• • Reduced operating loss includes D&A increase due to expanded core range, non-repeat of £10m furlough credits in prior year and higher brand investment
• Positive cashflow from operations of £104m; Free cash outflow2 of £44m, a £326m improvement year- on-year with controlled investment aligned to financial performance and business plan deliverables
• Improved cash position of £506m (December 2020: £489m) includes £77m gross proceeds from new
  notes issued in the period; Net debt of £792m (December 2020: £727m)

Project Horizon transformation well underway

• Delivering compelling products
• • Successfully achieved rebalance of GT/Sport supply to demand in Q1, earlier than originally expected
  • Good demand for current models; first DBX derivative to start production in Q3
  • Vantage F1® edition attracting strong demand and V12 Speedster deliveries commenced
  • Aston Martin Valkyrie on track for H2 deliveries; Valkyrie AMR Pro deliveries to start in Q4
  • Successful launch of Valhalla hybrid supercar at British Grand Prix

1. Company sales to dealers (some Specials are direct to customer)
2. Operating cashflow less cash used in investing activities and net cash interest; note cash interest payments are in Q2 and Q4

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• • All Aston Martins to have an electrified powertrain option, either hybrid or battery electric by 2025/26 and 50% to be battery electric by 2030
• Focusing on customer and brand
• • Aston Martin Cognizant Formula OneTM Team driving brand awareness
  • Launched new class-leading configurator improving customer experience
  • Strengthened regional management with external appointments
  • Extended dealer network, in particular, in Europe
• Delivering operational excellence, agility and efficiency
• • All sports manufacturing consolidated into one centre of excellence
  • Completed shift to single line production at Gaydon
  • Paint shop consolidation scheduled for completion post summer
  • St Athan efficiency consolidation well underway
  • Structure in place to operate at enhanced efficiency levels through H2
  • Manufacturing operations not impacted by chip shortages, closely monitoring situation
• Building a performance driven culture
• • Profit, cash and quality metrics embedded in whole company bonus plan
  • Experienced luxury and automotive executives appointed to the Board
  • • Amedeo Felisa (former CEO of Ferrari), Natalie Massenet DBE (founder of Net-a- Porter), Marigay McKee (former President of Saks Fifth Avenue) and Franz Reiner (current Mercedes-Benz AG executive)
  • 38% of Board members (Executives and Independent Non-Executives) are now female
  • Leadership team boosted including new Heads of Sales Operations & Network Development, Marketing & Communication, and Quality
  • Employee survey shows pride in working for the Company and strong teamworking

Lawrence Stroll, Executive Chairman commented:

"When I joined Aston Martin just over a year ago, I had in mind key milestones that needed to be achieved to put the right foundations in place for the Company's future success. These have all been delivered, from appointing a world-class leadership team, to successfully rebalancing supply to demand and crucially strengthening the financial resilience of the business. Signing the landmark technology agreement with Mercedes-Benz AG underpins our product plans for the future, including the route to electrification. All supported by the important brand benefit of the Aston Martin Cognizant Formula OneTM Team.

It also gave me great pleasure to announce the further strengthening of our Board with the appointment of Amedeo Felisa, Natalie Massenet DBE, Marigay McKee and Franz Reiner earlier this month. With this last step in my initial turnaround plan completed I remain tremendously excited about the significant potential of the business.

Building on the success of DBX, our first SUV, we have since delivered two more new vehicles and with more exciting product launches to come we are well positioned for growth. The launch of Valhalla last week signals a new era for Specials at Aston Martin as an integral pillar of our brand and our product innovation.

The demand we see for our products, the new product pipeline and the quality of the team we have in place to execute, gives me great confidence in our continued success as we progress towards achieving our medium-term targets of 10k units, £2bn revenue and £500m of adjusted EBITDA, as we transform Aston Martin to be one of the greatest ultra-luxury car brands in the world."

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Tobias Moers, Chief Executive Officer commented:

"We have performed well in the first half of the year as we continue to deliver results in-line with our plans to improve profitability. Demand and pricing dynamics remain strong and I am particularly pleased that we are now operating with the right supply to demand balance for our products, earlier than we had originally expected.

I am also happy with our excellent progress on Project Horizon as we drive efficiency and agility throughout every aspect of the Company. Our manufacturing operations have seen significant changes with the consolidation of all sports manufacturing into a centre of excellence at Gaydon and a shift to a more efficient single production line. Our technical teams are focused on developing our future pipeline of compelling products, from the recently announced Aston Martin Valkyrie AMR Pro, the ultimate no rules hypercar, due to start delivery in Q4, to Valhalla, our first plug-in hybrid, mid-engined supercar as we embark on our journey from combustion to hybrid to electric.

I would like to thank all of our employees for their hard work and their dedication as COVID-19 continues to impact all of us and for their passion, support and commitment as we continue on our journey. Our good progress to date in the execution of our plans as signalled by our results today, underpins our confidence in delivering our transformational growth strategy to create a world-class,self-sustainingultra-luxury automaker."

Outlook

The progress we have made to improve the profitability of the business in the first half, underpins our confidence in delivering our medium-term plans and targets. By 2024/25:

• c.10,000 wholesales, c.£2bn revenue and c.£500m adjusted EBITDA
• Annual capex and R&D £250m-£300m

The uncertainty surrounding the duration and impact of the pandemic on the global economy continues, with the pace of emergence from lockdown and recovery in consumer demand varying significantly across geographies. However, with H1 trading in-line with our expectations and good forward visibility for both GT/Sport and DBX, our expectations and guidance for 2021, remain substantially unchanged except for allowing for the £15m impact from the legal action we announced on 22 June:

-	Wholesales	c. 6,000
-	Adjusted EBITDA margin	mid-teens %, prior to the £15m impact of legal action,
		of which, £5m doubtful debt provision recognised in H1 2021

• Adjusted EBITDA is expected to be heavily weighted to the second half and particularly Q4 given the timing of Specials

-	CAPEX and R&D	c. £250m-£275m
-	Depreciation and amortisation	c.£255m-£265m reflecting programme timing
		(previously c.£240m-£250m)
-	Interest costs3	c. £135m (P&L) / c.£120m (cash) updated to reflect current
		exchange rates (previously c.£145m (P&L)/c. £120m (cash))

All metrics and commentary in this announcement exclude adjusting items unless stated otherwise and certain financial data within this announcement have been rounded.

3 Assuming current exchange rates prevail for FY 2021. Note: interest payments are made in Q2 and Q4

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Enquiries
Investors and Analysts
Charlotte Cowley	Director of Investor Relations	+44	(0)7771 976764
		[e-mail]
Brandon Henderson	Senior Manager, Investor Relations	+44	(0)7585 326704
		[e-mail]
Media
Kevin Watters	Director of Communications	+44	(0)7764 386683
		[e-mail]
Grace Barnie	Corporate Communications Manager	+44	(0)7880 903490
		[e-mail]
Tulchan Communications
Harry Cameron and Simon Pilkington	+44	(0)20 7353 4200

• Presentations from Tobias Moers, CEO and Ken Gregor, CFO are available on the corporate website from 7am and there will be a call for investors and analysts today at 08:30am. The conference call can be accessed live via the corporate websitehttps://www.astonmartinlagonda.com/investors/calendar
• A replay facility will be available on the website later in the day
• Interim Results for the nine months to 30 September 2021 will be announced on 4 November 2021

No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this release. This release contains certain forward -looking statements, which are based on current assumptions and estimates by the management of Aston Martin Lagonda Global Holdings plc ("Aston Martin Lagonda"). Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from any expected future results in forward- looking statements. These risks may include, for example, changes in the global economic situation, and changes affecting individual markets and exchange rates.

Aston Martin Lagonda provides no guarantee that future development and future results achieved will correspond to the forward- looking statements included here and accepts no liability if they should fail to do so. Aston Martin Lagonda undertakes no obligation to update these forward-looking statements and will not publicly release any revisions that may be made to these forward-looking statements, which may result from events or circumstances arising after the date of this release.

This release is for informational purposes only and does not constitute or form part of any invitation or inducement to engage in investment activity, nor does it constitute an offer or invitation to buy any securities, in any jurisdiction including the United States, or a recommendation in respect of buying, holding or selling any securities.

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FINANCIAL REVIEW

Sales and revenue analysis

Number of vehicles	H1 2021	H1 2020	Change	Q2 2021	Q2 2020	Change
Total wholesale	2,901	895	224%	1,548	317	388%
Core (excluding Specials)	2,881	894	222%	1,529	316	384%
By region:
UK	434	275	58%	162	46	252%
Americas	1,056	280	277%	625	173	261%
EMEA ex. UK	600	191	214%	316	43	635%
APAC	811	149	444%	445	55	709%
By model:
Sport	670	283	137%	358	95	277%
GT	610	596	2%	321	214	50%
SUV	1,595	-	n.m.	849	-	n.m.
Other	6	15	(60%)	1	7	(86%)
Specials	20	1	n.m.	19	1	n.m.

Note: Sport includes Vantage, GT includes DB11 and DBS, SUV includes DBX and Other includes prior generation models

Total wholesales more than trebled to 2,901 units, with DBX representing over half the mix and Sports delivering strong growth with good underlying retail demand; Q2 2020 was the most heavily impacted quarter from COVID-19 restrictions with both manufacturing facilities closed for the majority of the quarter and dealer operations severely impacted. 20 Specials were wholesaled including initial V12 Speedster deliveries.

Geographically, APAC saw the strongest growth, up over 400% in the half and accelerating to up over 700% in Q2 boosted by DBX, coupled with good demand for GT/Sports. The UK was heavily impacted by lockdown disruptions to dealer operations in Q1, though growth improved significantly in Q2.

Revenue by Category

£m	H1 2021	H1 2020	Change
Sale of vehicles	458.5	113.1	305%
Sale of parts	32.2	23.1	39%
Servicing of vehicles	5.1	3.5	46%
Brand and motorsport	3.0	6.3	(52%)
Total	498.8	146.0	242%

First half revenues more than trebled to £499m (H1 2020: £146m), driven mainly by increased wholesales along with improved pricing.

The stronger pricing dynamics followed the completion of the rebalance of supply to demand for GT/Sports during Q1 2021. Substantially lower customer and retail financing support and improved residual values contributed to a sequential improvement in core ASP from £149k in Q1 to £151k in Q2 (H1 2021: £150k; H1 2020: £121k). Total ASP of £156k reflected the 20 Specials in the half compared with one in the prior year period (H1 2020: £124k).

The net £7m improvement in other revenue streams reflected dealers returning to more normal servicing operations than the prior year and lower brand and motorsport revenues, with low race car sales as expected.

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