Aston Martin Lagonda Global Holdings Plc · LSE:AML
Aston Martin Lagonda Global — H1 2023 Earnings Presentation
28 slides from Aston Martin Lagonda Global's earnings presentation, Jul 26, 2023
Slide 1: H1 2023 Results
H1 2023 Results Six months ended 30 June 2023
Slide 2: Amedeo Felisa, Chief Executive Officer
Amedeo Felisa CHIEF EXECUTIVE OFFICER
Slide 3: Agenda
Agenda 1. H1 2023 highlights 2. Financial review Appendix
Slide 4: H1 2023 Highlights
H1 2023 Highlights Accelerating the pace of execution; new 2027/28 financial targets focused on growth through value ▪ Q2 performance ahead of expectations; FY 2023 guidance maintained • New DB12 Coupe sold out for 2023 following launch at the end of May; GT/Sports sold out for 2023 ahead of new lau
Slide 5: 110th Anniversary
110th Anniversary Marking this historic occasion with a series of events, including a reception at the Houses of Parliament in London and a celebration lap of the Silverstone circuit featuring 110 Aston Martin cars, past and present 5
Slide 6: DB12
DB12 The world’s first Super Tourer, launched to incredible early demand and rave reviews, now already sold out for 2023 “Where ultimate performance meets unrivalled luxury” Forbes, May 2023 6
Slide 7: Valour
Valour Ultra-exclusive V12-engined, manual transmission Special – the ultimate visceral driving experience, to celebrate Aston Martin’s 110th anniversary. Unprecedented demand, with all 110 units sold within two weeks, with a growing waiting list 7
Slide 8: Q New York Flagship Opening
Q New York Flagship Opening First ultra-luxury flagship in the heart of New York City 8
Slide 9: Technology Partnerships
Technology Partnerships Creating the world’s most thrilling and highly desirable performance cars, complementing our bespoke flexible BEV platform Aston Martin Flexible BEV Platform Strategic Partners 9
Slide 10: Doug Lafferty, Chief Financial Officer
Doug Lafferty CHIEF FINANCIAL OFFICER
Slide 11: H1 2023 Financial Results
H1 2023 Financial Results Q2 performance ahead of expectations 2023 2022 Total Wholesales1 (units) Adjusted Operating Loss (£m) 2,954 (87) 2,676 (73) Revenues (£m) Free Cash Flow2 (£m) 677 (218) 542 (234) Adjusted EBITDA (£m) Net Debt (£m) 81 846 59 1,266 1,500 1,000 500 0 11 Certain financial data
Slide 12: H1 2023 Wholesales & ASP
H1 2023 Wholesales & ASP 10% volume growth driven by 43% increase in DBX wholesales; lower GT/Sports volumes as expected, due to ongoing transition ahead of new launches; Continued strong ASP progression Total wholesales1: 2,954 Wholesale ASP (£k) By model (units); YoY % change Specials: 38 19% 212
Slide 13: H1 2023 Wholesales by Region
H1 2023 Wholesales by Region Strong growth in Americas and EMEA due to higher DBX volumes; UK driven by transition of GT/Sports; China impacted by transition of GT/Sports and DBX Change by region 48% (9)% 36% (28)% China (55)% 1,062 834 854 720 613 614 488 445 Americas UK EMEA ex.UK APAC H1 2022 H1
Slide 14: H1 2023 Gross Margin
H1 2023 Gross Margin YoY improvement in gross margin driven by core portfolio, partially offset higher manufacturing & logistics costs and FX headwinds 50.00 (%) 45.00 40.00 3.6% 35.00 (0.3%) (2.2%) (0.9%) 30.00 25.00 20.00 34.7% 34.9% 15.00 10.00 5.00 0.00 1 H1 2022 Gross Margin Core Wholesales Spe
Slide 15: H1 2023 Adjusted EBITDA
H1 2023 Adjusted EBITDA 38% YoY increase and 110 basis points margin expansion as higher volumes, favourable pricing & mix dynamics were partially offset by higher operating expenses (£m) EBT Analysis 10 1 £m H1 2023 H1 2022 36 11.9% margin Adjusted EBITDA 80.6 58.6 10.8% D&A (167.3) (131.3) margin
Slide 16: H1 2023 Free Cashflow
H1 2023 Free Cashflow H1 2023 performance slightly ahead of H1 2022 despite £42m YoY increase in capex 100 95 90 85 80 75 (£m) 70 65 60 55 50 45 40 35 30 (5) 25 20 15 55 10 5 0 -5 -10 -15 (37) -20 -25 -30 202 -35 -40 -45 -50 -55 -60 -65 -70 -75 (142) (180) -80 -85 -90 -95 -100 -105 -110 -115 (218) -
Slide 17: H1 2023 Cash & Debt
H1 2023 Cash & Debt Cash balance of £400m includes a £50m repayment of RCF and £95m proceeds of Geely share issuance; c. £460m of overall liquidity (£m) £m H1 2023 H1 2022 Loan notes (1,051.9)* (1,221.5) Inventory financing (39.9) (38.8) 583 Bank loans and overdrafts (57.8) (62.3) 45 Lease liabiliti
Slide 18: 2023 Outlook
2023 Outlook Unchanged from prior outlook Wholesales Growth to c. 7,000 units Adj. EBITDA margin Up to c. 20% D&A c. £350-370m Interest expense c. £120m cash1 Capex and R&D c. £370m • Expect strong YoY growth in H2’23, driven by new Core & high margin Specials products • Expect similar level of adju
Slide 19: Medium Term Outlook
Medium Term Outlook On track to substantially achieve 2024/25 financial targets in 2024; New targets for 2027/28 2024/2025 Targets Revenue c. £2bn • Expect to substantially achieve these targets by 2024 and, with continued Adj. EBITDA c. £500m strong momentum, likely to exceed them in 2025 Free cash
Slide 20: Thank you
ASTON MARTIN Thank you
Slide 21: Appendix
ASTON MARTIN Appendix
Slide 22: Significant progress across key metrics since 2020
Significant progress across key metrics since 2020 Improvements aligned with ultra-luxury strategy; £1.6bn equity capital raised since April 2020 April 2020 May 2023 Adeem/ Geely Mercedes-Benz AG Mercedes-Benz AG Primewagon 3% International 9% 18% 18% 2023e Increase 2020 2022 Yew Tree Consensus vs 2
Slide 23: Investing c£2bn in long-term growth and electrification
Investing c£2bn in our long-term growth and the transition to electrification More than 70% of investments focused on electrification over the next five years 5-Year Cumulative Capex Product Capex Breakdown (2023e – 2027e) BEV Internal Combustion HYBRID Engine (ICE) BEV ~75% c£1.8bn plus c.£0.2bn re
Slide 24: Proposed Lucid agreement and MBAG amendment – Financial implications
Proposed Lucid agreement and MBAG amendment – Financial implications • Technology access and supply agreement providing • Amended and restated Strategic Cooperation AML with access to Lucid’s world leading BEV Agreement, continuing long-term strategic powertrain components & software relationship •
Slide 25: Income Statement, Cashflow and Balance Sheet
Income Statement, Cashflow and Balance Sheet 2023 vs 2022 £m H1 2023 H1 2022 Q2 2023 Q2 2022 £m H1 2023 H1 2022 Revenue 677.4 541.7 381.5 309.0 Cash generated from operating activities 17.5 (33.1) Cost of sales (441.1) (353.6) (247.1) (204.9) Cash used in investing activities (excl. Gross profit 236
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 H1 2023 results analyst and investor meetings being held on 26th July 2023 in connection with a discussion of its H1 2023 results. For the purposes of this notice, this “presentat
Slide 28: Aston Martin Lagonda Investor Relations Team
Aston Martin Lagonda Investor Relations Team investor.relations@astonmartin.com www.astonmartinlagonda.com Sherief Bakr – Director of Investor Relations sherief.bakr@astonmartin.com Tel: +44 (0)7789 177547 Holly Grainger – Deputy Head of Investor Relations holly.grainger@astonmartin.com Tel: +44 (0)
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