Aston Martin Lagonda Global Holdings Plc · LSE:AML
Aston Martin Lagonda Global — FY 2023 Earnings Presentation
28 slides from Aston Martin Lagonda Global's earnings presentation, Feb 28, 2024
Slide 1: FY 2023 Results
FY 2023 Results Preliminary results for the fourth quarter and twelve months ended 31 December 2023 FY 2023 Results, February 2024
Slide 2: Agenda
Agenda 2023 highlights 4 Financial and strategic progress 5 Delivering our strategy 6 A view into 2024 7 Operational review 9 Accelerating. Forward. 10 Financial review 12 FY 2023 Results, February 2024
Slide 3: Lawrence Stroll, Executive Chairman
Lawrence Stroll EXECUTIVE CHAIRMAN FY 2023 Results, February 2024
Slide 4: 2023 Highlights during our historic 110th anniversary
2023 Highlights during our historic 110th anniversary Strengthening our iconic global brand FY 2023 Results, February 2024 4
Slide 5: Significant financial and strategic progress delivered in 2023
Significant financial and strategic progress delivered in 2023 Continued to execute growth strategy; enhancing brand and product portfolio Significant financial progress including Delivering our ultra-luxury, high-performance portfolio Impactful brand repositioning and Intensity. Driven. record ASPs
Slide 6: Significant financial and strategic progress delivered in 2023
Significant financial and strategic progress delivered in 2023 Continued to execute growth strategy; enhancing brand and product portfolio Significant financial progress including Delivering our ultra-luxury, high-performance portfolio Impactful brand repositioning and Intensity. Driven. record ASPs
Slide 7: An exciting view into 2024
An exciting view into 2024 Unleashing the power of our brand and continuing our growth trajectory through a year of portfolio transformation New Vantage Exciting new Electrification Strong strategic Enhancing our unveiled ultra-luxury high- unleashed partnerships corporate identity performance produ
Slide 8: Amedeo Felisa, Chief Executive Officer
Amedeo Felisa CHIEF EXECUTIVE OFFICER FY 2023 Results, February 2024
Slide 9: Operational progress
2023 Operational progress Comprehensive transformation across the Company Continued investment in world-class team; launched new Company Values; Culture of continuous improvement; focused on quality to align with ultra- Team Quality 25% improvement in Accident Frequency Rate compared with 2022 luxur
Slide 10: Accelerating. Forward.
Accelerating. Forward. Mid- and long- term priorities • Ensure supplier’s preparation for new Aston Martin is enhancing its strong and robust supplier base and product ramps Suppliers supply chain to deliver our product and brand vision • Further strengthen relationships with strategic partners Oper
Slide 11: Doug Lafferty, Chief Financial Officer
Doug Lafferty CHIEF FINANCIAL OFFICER FY 2023 Results, February 2024
Slide 12: Financial summary
2023 Financial summary Significant progress towards near- and medium-term targets Last twelve months 6,620 Total Wholesales1 6,178 6,412 • FY 2023 volumes increased 3%; driven by (Units) Sport/GT growth 3,394 FY’23: 6,620 • Q4 2023 volumes decreased 6% due to Q4’23: 2,222 elevated Q4 2022 wholesales
Slide 13: Wholesale volume growth & record ASPs
Wholesale volume growth & record ASPs Delivered robust wholesale volumes during a period of ongoing transformation; Continued ASP progression aligned with enhanced product portfolio Total wholesales1: 6,620, up 3% Total ASP: £231k, up 15% By model (units); YoY % change £k Specials: 151 70% 231 201 1
Slide 14: Wholesales by region
2023 Wholesales1 by region Delivered growth in all regions (ex. China) driven by higher DBS 770 Ultimate and DB12 volumes; China impacted by weaker market conditions YoY change in wholesales by region 3% 3% 32% (20)% Ex. China 12% 1,980 2,037 1,994 1,814 1,508 1,110 1,141 1,448 Americas UK EMEA ex.U
Slide 15: Gross margin
2023 Gross margin 650 basis point YoY improvement in gross margin within reach of our longstanding c. 40% target (%) 3.6% 4.5% (1.0)% (0.6)% 39.1% 32.6% FY 2022 Core Wholesales1 Specials M&L Other/FX FY 2023 Core Wholesales Specials Manufacturing & Logistics Costs Other & FX • Increase in core whole
Slide 16: Adjusted EBITDA
2023 Adjusted EBITDA 61% YoY increase and 490 basis points margin expansion as higher volumes, strong pricing and mix dynamics were partially offset by higher operating expenses (£m) EBT Analysis 51 £m FY 2023 FY 2022 154 (10) (6) 18.7% margin Adjusted EBITDA 305.9 190.2 D&A (385.6) (308.1) (73) 13.
Slide 17: Financial summary
2023 Financial summary Disciplined strategic delivery supporting ongoing deleveraging; net leverage ratio at 2.7x (397) FY23 • £111m increase in Capex year-on-year with Capital Expenditure investment focused on future product (£m) (287) FY22 pipeline FY’23: (397) (185) FY21 • Includes £27m payment t
Slide 18: Free cash flow
2023 Free cash flow Free cash flow impacted by timing of receivables at year end as well as reflecting significant increase in YoY Capex (£m) 477 (5) 231 (86) (240) (360) (397) (109) EBT 1 Add back D&A/other Tax paid Cash generated after tax Working Capital Investing activities Net interest paid FCF
Slide 19: Cash & debt
2023 Cash & debt Cash balance of £392m with receivables unwinding in January 2024 (£m) £m FY 2023 FY 2022 Loan notes (980.3)* (1,104.0) 182 Inventory financing (39.7) (38.2) (13) Bank loans and overdrafts (89.4) (107.1) 583 Lease liabilities (97.3) (99.8) Gross debt (1,206.7) (1,349.1) (360) 392 Cas
Slide 20: Guidance and outlook underpinned by continued strong demand
Guidance and outlook underpinned by continued strong demand Maintaining near- and medium-term targets FY 2024 Guidance FY 2027/2028 Targets Wholesales High single-digit % growth Revenue c. £2.5bn Improving to achieve our Gross margin In the mid-40s% Gross margin longstanding c. 40% target Adj. EBITD
Slide 21: Q&A
Q&A FY 2023 Results, February 2024
Slide 22: Appendix
Appendix Income statement 23 Cashflow, Balance Sheet & Net Debt 24 Quarterly breakdown 25 Alternative performance measures 26 Disclaimer 27 Contacts 28 FY 2023 Results, February 2024
Slide 23: Income Statement
Income Statement FY 2023 vs FY 2022 £m FY 2023 FY 2022 Q4 2023 Q4 2022 Revenue 1,632.8 1,381.5 593.3 524.3 Cost of sales (993.6) (930.8) (324.9) (359.8) Gross profit 639.2 450.7 268.4 164.5 Gross margin % 39.1% 32.6% 45.2% 31.4% Operating expenses1 (718.9) (568.6) (213.0) (154.2) of which depreciati
Slide 24: Cashflow, Balance Sheet & Net Debt
Cashflow, Balance Sheet & Net Debt FY 2023 vs FY 2022 £m FY 2023 FY 2022 Q4 2023 Q4 2022 Cash generated from operating activities 145.9 127.1 114.5 184.0 Cash used in investing activities (excl. interest) (396.9) (286.9) (121.9) (73.5) Net cash interest paid (109.0) (139.0) (55.8) (73.7) Free cash (
Slide 25: Quarterly Breakdown
2023 Quarterly Breakdown Income statement, cashflow and Alternative Performance Measures £m Q1 2023 Q2 2023 Q3 2023 Q4 2023 £m Q1 2023 Q2 2023 Q3 2023 Q4 2023 Revenue 295.9 381.5 362.1 593.3 Cash (used in)/generated from (33.0) 50.5 13.9 114.5 Cost of sales (194.0) (247.1) (227.6) (324.9) operating
Slide 26: Alternative performance measures
Alternative performance measures In the reporting of financial information, the Directors have adopted various Alternative Performance Measures ("APMs"). APMs should be considered in addition to IFRS measurements. The Directors believe that these APMs assist in providing useful information on the un
Slide 27: Disclaimer
Disclaimer This presentation has been prepared by Aston Martin Lagonda Global Holdings PLC (“AML”) solely for use at the FY 2023 results analyst and investor meetings being held on 28th February 2024 in connection with a discussion of its FY 2023 results. For the purposes of this notice, this “prese
Slide 28: Aston Martin Lagonda Investor Relations Team
Aston Martin Lagonda Investor Relations Team investor.relations@astonmartin.com www.astonmartinlagonda.com James Arnold – Head of Investor Relations james.arnold@astonmartin.com Tel: +44 (0) 7385 222347 Ella South – Investor Relations Analyst ella.south@astonmartin.com Tel: +44 (0) 7776 545420 FY 20
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