REG - Aston Martin Lagonda - Half-year Report
26/07/2023 07:00
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RNS Number : 1784H Aston Martin Lagonda Glob.Hldgs PLC 26 July 2023
26 July 2023
Aston Martin Lagonda Global Holdings plc
Interim results for the six months to 30 June 2023
· Q2 performance ahead of expectations; FY 2023 guidance maintained
· H1 revenue growth of 25%, driven by strong DBX volume & ASP
growth
· H1 Total ASP increased by 14% to £212k; Core ASP increased by 12%
to £184k
· New DB12 Coupe sold out for 2023 following launch at the end of May
· GT/Sports sold out for 2023 ahead of new launches; DBX order book
into Q4
· On track to substantially achieve 2024/25 financial targets in 2024
£m H1 2023 H1 2022 % change Q2 2023 Q2 2022 % change
Total wholesale volumes(1) 2,954 2,676 10% 1,685 1,508 12%
Revenue 677.4 541.7 25% 381.5 309.0 23%
Gross Profit 236.3 188.1 26% 134.4 104.1 29%
Adjusted EBITDA(2) 80.6 58.6 38% 50.4 34.2 47%
Adjusted EBIT(2) (86.7) (72.7) (19%) (38.9) (38.4) (1%)
Operating loss (93.2) (89.9) (4%) (42.3) (42.2) (0%)
Loss before tax (142.2) (285.4) 50% (68.0) (173.8) 61%
Net debt(2) (846.2) (1,266.4) 33% (846.2) (1,266.4) 33%
(1) Number of vehicles including Specials; (2) For definition of alternative
performance measures please see Appendix
H1 2023 Financial highlights
· Retails 3 (#_ftn1) outpaced wholesales(( 4 (#_ftn2) )) as
strong demand continues across the portfolio; current range of GT/Sports cars
sold out for 2023 ahead of upcoming launches and DBX order book into Q4 2023,
with the DBX707 continuing to represent more than 70% of total DBX orders and
establishing itself as the benchmark in the ultra-luxury SUV segment
· Wholesale volumes increased by 10% year-on-year to 2,954 (H1
2022: 2,676) driven by 43% year-on-year DBX volume growth, underpinned by the
DBX707. As expected, GT/Sports volumes were lower due to the ongoing
transition of sports car sales ahead of new launches, starting with the
world's first Super Tourer, DB12
· Revenue increased by 25% year-on-year to £677m primarily driven
by:
- higher volumes, strong pricing dynamics in the core portfolio and
favourable mix dynamics from the DBX707 and V12 Vantage Roadster
§ Core ASP of £184k in H1 2023, up 12% vs £164k in H1 2022
§ Core ASP of £187k in Q2 2023, up 7% vs £174k in Q2 2022
- higher year-on-year Aston Martin Valkyrie programme deliveries (38
vehicles compared to 27 in H1 2022)
§ Total ASP of £212k in H1 2023, up 14% vs £186k in H1 2022
§ Total ASP of £212k in Q2 2023, up 12% vs £190k in Q2 2022
· Gross profit increased by 26% year-on-year to £236m (H1 2022:
£188m) with a gross margin of 35% (H1 2022: 35%). The increase in gross
profit was primarily driven by favourable mix and pricing dynamics as well as
higher volumes, partially offset by higher manufacturing, logistics and other
costs
· Adjusted EBITDA 5 (#_ftn3) increased 38% year-on-year to £81m
primarily driven by higher revenue and gross profit, partially offset by
higher operating expenses including reinvestments into brand and marketing
activities, as well as inflationary impacts on general costs. This translated
to an adjusted EBITDA margin of 12%, a year-on-year expansion of approximately
110 basis points
· Operating loss of £93m (H1 2022: £90m loss) included a £36m
year-on-year increase in depreciation and amortisation
· Loss before tax of £142m (H1 2022: £285m loss) included lower
year-on-year net financing charges due to a positive non-cash FX revaluation
impact of US dollar-denominated debt
· H1 2023 free cash outflow 6 (#_ftn4) of £218m (H1 2022: £234m
outflow) included:
- Higher year-on-year capital expenditure of £181m (H1 2022: £138m),
primarily related to new model development, including the next-generation of
sports cars as well as development of the Company's electrification programme
- Net cash interest payments of £56m (H1 2022: £63m)
- Working capital outflow of £37m (H1 2022: £67m outflow) primarily driven
by higher inventories and the net outflow of customer deposits, partially
offset by a reduction in receivables
· Cash balance of £400m (December 2022: £583m) included £95m of
proceeds from the subscription shares issued to Geely International (Hong
Kong) Limited, with an additional c. £60m of revolving credit facility
available, providing overall liquidity of c. £460m
· Net debt of £846m (December 2022: £766m) including a
positive £62m non-cash FX revaluation of US dollar-denominated debt as the
GBP strengthened against the US dollar
H1 2023 Operational Highlights: Accelerating.Forward.
· On 15 January 2023 the Company commenced a year-long global
celebration of Aston Martin's 110(th) anniversary, culminating in the launch
of Valour, a spectacular, ultra-exclusive V12-engined, manual transmission
special edition, limited to 110 units, sold out with a growing waiting list
- The anniversary has also taken centre stage at this year's British Grand
Prix at Silverstone with a celebration lap featuring 110 Aston Martins and at
the Goodwood Festival of Speed, including a historic first-ever appearance of
all three Aston Martin Valkyrie models together
- The 110(th) anniversary has also been celebrated through an official royal
visit to Gaydon and Parliamentary Reception, hosted by the Commons Speaker in
the State Rooms of Speaker's House. Further major events are taking place
across Aston Martin's key regions, as part of a global marketing campaign
entitled Intensity: 110 Years in the Making
· In January 2023, the Company announced plans to increase
employment at its Gaydon headquarters with the creation of more than 100 jobs
in its manufacturing facility to support the launch of its next generation of
sports cars
· The DBS 770 Ultimate, the most powerful production Aston Martin
ever, was unveiled in January 2023, with all 499 examples sold out. Deliveries
are scheduled to begin in Q3 2023
· In April 2023, the Company announced further progress in its
Racing.Green. sustainability strategy, using CO(2) emission offsets to
establish carbon neutral status for its Gaydon and St Athan plants. This
follows an acceleration towards the goals established in the strategy
announced in 2022, with updated targets now including:
- Carbon Neutral manufacturing facilities, with 100% use of renewable
electricity
- A new goal to achieve a 2.5% year-on-year reduction in CO(2) emissions
from its manufacturing facilities 7 (#_ftn5)
- A new goal to reduce CO(2) emissions intensity and energy consumption per
car by 2.5% year on year 8 (#_ftn6)
- A new target to improve biodiversity at its manufacturing facilities
· During the first half of 2023, the Company continued to invest in
its world-class team including the appointment of
- Chief Industrial Officer, Vincenzo Regazzoni
- Chief Procurement Officer, Giorgio Lasagni
- BEV Chief Engineer, Paul Thomas
· The Aston Martin DB12, the world's first Super Tourer, was
launched on 24 May 2023 to significant global attention during the Cannes
International Film Festival, heralding a new era as the first of the Company's
next generation sports cars. Customer deliveries are commencing in Q3, and are
sold out for the rest of the year
· The sale of the very first Aston Martin DB12 raised $1.6 million
for charity, taking centre stage of the star-studded auction at the amfAR Gala
Cannes
· The Company celebrated the success of the Aston Martin Aramco
Cognizant Formula One® Team with the release of an exclusive AMR23 Edition
of the world's most powerful ultra-luxury SUV: the DBX707. Named after the
brand's Formula 1® challenger, the AMR23 Edition creates a DBX707 that
shares a racing identity with both the AMR23 F1® car and the Official
Medical Car of Formula 1®
· The excellent start to the Formula 1®️ season by the Aston
Martin Aramco Cognizant Formula One® Team has driven significant brand
visibility and heightened product consideration, with a 29% increase in
website traffic versus non-race weekends, 20% uplift in configurator traffic
on 2022 and 345% uplift in brand visibility in the first five races of the
season, compared with 2022
· The world-conquering Aston Martin Vantage claimed another podium
finish in the 24 Hours of Le Mans, with partner team ORT by TF Sport claiming
second in the centenary running of the world's most famous motor race, in the
LMGTE Am class
· In June 2023, the Company proudly opened the doors to Q New
York, its first ultra-luxury flagship on 450 Park Avenue, in New York City.
The new location brings the highest levels of the iconic British brand's
bespoke service, Q by Aston Martin to North America for the very first time,
providing the most sophisticated luxury specification experience available
anywhere in the world
· On 26 June 2023, the Company moved further forward in its
ambition to create the world's most thrilling and highly desirable electric
performance cars, with the formation of a landmark new supply agreement with
world-leading electric vehicle technologies company, Lucid Group, which will
help propel Aston Martin's high-performance electrification strategy, with the
first BEV targeted for launch in 2025
- The proposed agreement would see Lucid, a world-leader in the design and
manufacture of advanced electric powertrains and battery systems, supply Aston
Martin with industry-leading electric vehicle technologies. Access to Lucid's
current and future powertrain and battery technology will be at the centre of
Aston Martin's all-new in-house Battery Electric Vehicle (BEV) platform
Lawrence Stroll, Executive Chairman commented:
"Although we may only be halfway through the year, 2023 has already proven to
be a remarkable year in which Aston Martin has shone brighter than ever. In
May we launched DB12, marking the start of our new generation of front engine
sports cars that will further reposition Aston Martin as an ultra-luxury,
high-performance brand, with timeless design combining with the latest
technology and the most thrilling driving experience .
"Billed as the world's first Super Tourer, DB12 is a unique model that
elevates itself beyond the GT segment, creating a new category of one. Our
excitement for this model has been shared by customers, dealers and leading
journalists, and with incredible early demand, rave reviews from the first
media drives, we are sold out for the rest of year with orders already
building into 2024.
"We are also continuing to invest in our brand and go-to-market strategy, as
well as building on the transformational partnership with Aston Martin Aramco
Cognizant Formula One®️ Team. During the second quarter we opened "Q New
York", our first ultra-luxury flagship in the heart of New York City, which
will provide an unrivalled customer experience, as well as the most advanced
and sophisticated luxury specification experience available anywhere in the
world.
"At the end of June, we also provided a significant update on our
electrification strategy and plans to create a singular, Aston Martin BEV
platform, with world-class suppliers complementing our extraordinary in-house
engineering and design teams. Our electrification journey will start with
Valhalla, our first PHEV supercar, and we plan to expand our PHEV range into
our core vehicles which will bridge the customer journey from ICE to full
BEV.
"In addition, we are now driving new levels of operational excellence to
support our growth and deliver on our targets which focus on increasing value
for each car we sell, aligned with the characteristics of a true ultra-luxury
company."
Amedeo Felisa, CEO, commented:
"Whilst celebrating our 110(th) anniversary, the first half of 2023 has seen
us continue to deliver on our targets, while reaching landmark agreements with
world-class partners to support our longer-term growth and electrified future.
"We delivered strong ASP and revenue growth with healthy EBITDA margin
expansion in H1, supported by the DBX707 and V12 Vantage Roadster.
"Following its successful launch and strong early appeal, DB12 deliveries are
commencing this quarter, providing excited customers with their first
opportunity to experience our new line-up of thrilling sports cars.
Importantly, all of these new models continue to target a minimum 40% gross
margin, aligned with our financial goals. The expansion and transformation of
our portfolio across both core and specials will continue throughout the
second half of the year, including the arrival of the recently unveiled
ultra-exclusive special, Valour. We have seen unprecedented demand, and within
two weeks all 110 units have been sold, with a growing waiting list.
"At our recent Capital Markets Day, we confirmed that we are on track to
substantially achieve our 2024/25 financial targets in 2024 and, with
continued strong momentum, are likely to exceed them in 2025."
Outlook
We remain well on track to achieve our medium-term financial targets of
c.£2bn revenue and c.£500m adjusted EBITDA by 2024/25. The
Company expects to substantially achieve these financial targets in 2024 and,
with continued strong momentum, is likely to exceed them in 2025.
Consistent with our target to become free cash flow positive from 2024, the
Company also expects to further deleverage its balance sheet, targeting a net
leverage ratio of c.1.5x in 2024/25.
At our recent Capital Markets Day, we also provided new mid-term financial
targets for 2027/28, consisting of:
· Revenue of c. £2.5 billion
· Gross margin in the mid 40s%
· Adjusted EBITDA of c. £800 million
· Adjusted EBITDA margin of c. 30%
· Free cash flow to be sustainably positive
· Net leverage ratio of c. 1.0x
Aligned with this framework, we expect to invest c. £2 billion over the
next five years (2023-2027) as we invest in our long-term growth and the
transition to electrification. This is comprised of c. £1.8 billion of
capital expenditure and now includes c. £200 million in new technology
access fees to our strategic suppliers and partners over the next five years,
including the payments related to the proposed strategic supply agreement with
Lucid Group, Inc. ("Lucid").
For FY2023 our expectations are unchanged since our FY 2022 results
announcement on 1 March;
· Within the second half of 2023, we expect to achieve a similar
level of adjusted EBITDA in Q3 2023 as Q2 2023, with a significant increase in
adjusted EBITDA in Q4 2023, primarily due to the timing and related
contribution of new product launches
· We expect to deliver significant growth in profitability compared
to 2022, primarily driven by an increase in volumes and higher gross margin in
both Core and Special vehicles. We expect significant year-on-year growth and
target positive free cash flow in the second half of the year, excluding the
initial $33m (£26m) cash payment to Lucid Group, Inc. ("Lucid") in relation
to the strategic supply agreement announced on 26 June 2023, which is expected
to be paid in the second half of 2023
· The second half of 2023, and especially Q4 2023, is expected to
see the delivery of a number of new products across the Core and Specials
ranges, all with improved profitability. In addition to the ramp up of the
already sold-out DBS 770 Ultimate, we expect deliveries of the first of our
next generation of sports cars - the DB12 Super Tourer - to commence in Q3
· Within Specials, we plan to commence deliveries of the sold-out
Aston Martin Valkyrie Spider and the ultra-luxury DBR22 in the second half of
the year. Finally, and in conjunction with our historic 110(th) anniversary,
we plan to commence deliveries of the ultra-exclusive Valour in Q4
· We expect to increase investment in brand and new product launch
activities during the year. This will also allow us to continue to elevate our
ultra-luxury performance brand positioning and to support the acceleration of
our longer-term growth
· Although the operating environment remains volatile, including
ongoing inflationary pressures and pockets of supply chain disruptions, our
teams continue to work in partnership with our suppliers to mitigate and
minimise any impact on our performance in 2023
2023 guidance (unchanged):
· Wholesales: year-on-year growth to c. 7,000 units
· Adjusted EBITDA margin: year-on-year expansion, up to c. 20%
adjusted EBITDA margin
· Capex and R&D: c. £370m
· Depreciation and amortisation: c. £350m-£370m
· Interest costs: c. £120m (cash), assuming current exchange rates
prevail for 2023
The financial information contained herein is unaudited.
All metrics and commentary in this announcement exclude adjusting items unless
stated otherwise and certain financial data within this announcement have been
rounded.
Enquiries
Investors and Analysts
Sherief Bakr
Director of Investor Relations
+44 (0) 7789 177547
sherief.bakr@astonmartin.com
Holly Grainger Deputy
Head of Investor
Relations
+44 (0)7442 989551
holly.grainger@astonmartin.com
Media
Kevin
Watters
Director of
Communications
+44 (0)7764 386683
kevin.watters@astonmartin.com
Paul
Garbett
Head of Corporate & Brand Communications +44
(0)7501 380799
paul.garbett@astonmartin.com
Grace
Barnie
Corporate Communications
Manager +44 (0)7880
903490
grace.barnie@astonmartin.com
Tulchan Communications
Harry Cameron and Simon Pilkington
+44 (0)20 7353 4200
· Presentations from Amedeo Felisa, CEO and Doug Lafferty, CFO are
available on the corporate website from 07.00am BST and there will be a call
for investors and analysts today at 08:30am BST
· The conference call can be accessed live via the corporate
website https://www.astonmartinlagonda.com/investors/calendar
(https://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 2023 will be
announced on 1 November 2023
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.
FINANCIAL REVIEW
Sales and revenue analysis
Number of vehicles H1 2023 H1 2022 Change Q2 2023 Q2 2022 Change
Total wholesale 2,954 2,676 10% 1,685 1,508 12%
Core (excluding Specials) 2,916 2,644 10% 1,665 1,495 11%
By region:
UK 445 488 (9%) 225 224 0%
Americas 1,062 720 48% 595 359 66%
EMEA ex. UK 834 614 36% 491 343 43%
APAC 613 854 (28%) 374 582 (36%)
By model:
GT/Sport 1,369 1,561 (12%) 787 833 (6%)
SUV 1,547 1,083 43% 878 662 33%
Specials 38 32 19% 20 13 54%
Note: GT/Sport includes Vantage, DB11 and DBS
Total wholesales of 2,954 increased by 10% year-on-year (H1 2022: 2,676)
driven by significantly higher DBX volumes. As expected, GT/Sports volumes
were lower than the comparative period due to the ongoing transition of sports
car sales ahead of new launches later in the year. Total wholesales included
38 Specials (H1 2022: 32), all of which were Aston Martin Valkyries (H1 2022:
27 Aston Martin Valkyries). DBX volumes increased by 43% year-on-year,
driven by the DBX707, the world's most powerful luxury SUV. The DBX707 is now
clearly established as the benchmark in the ultra-luxury SUV segment with
strong volume growth in the majority of our key markets. The second quarter of
2023 showed a significant improvement in overall wholesales over the prior
quarter, with 33% sequential volume growth.
Geographically, the Americas was the strongest and largest region,
representing 36% of wholesales in the first half of the year, primarily driven
by strong year-on-year DBX and V12 Vantage growth. EMEA also saw strong growth
in H1, primarily driven by higher DBX volumes and overall GT/Sports growth -
most notably V12 Vantage Roadster volumes.
Our home market, the UK, saw lower year-on-year volumes driven by the
ongoing transition of sports cars sales ahead of new launches later in the
year, which more than offset higher year-on-year DBX volumes. Finally, APAC
volumes declined year-on-year following strong growth in Q2 2022 as well as
ongoing transitions in both sports cars and DBX volumes. APAC continues to be
a region where we see significant opportunity for long-term growth.
Revenue by Category
£m H1 2023 H1 2022 Change
Sale of vehicles 627.3 499.6 26%
Sale of parts 40.3 32.9 22%
Servicing of vehicles 4.2 5.0 (16%)
Brand and motorsport 5.6 4.2 33%
Total 677.4 541.7 25%
First half revenues increased by 25% year-on-year to £677m (H1 2022: £542m),
primarily driven by higher volumes, strong pricing dynamics in the core
portfolio and favourable mix, as well as higher Aston Martin Valkyrie
programme deliveries.
The strong year-on-year mix and pricing dynamics enjoyed in the first half of
2023 translated into a core average selling price (ASP) of £184k (H1 2022
Core ASP: £164k), an increase of 12%. Total ASP of £212k in H1 included 38
Specials in the half compared with 32 in the prior year period (H1 2022 Total
ASP: £186k).
Summary income statement and analysis
£m H1 2023 H1 2022 Q2 2023 Q2 2022
Revenue 677.4 541.7 381.5 309.0
Cost of sales (441.1) (353.6) (247.1) (204.9)
Gross profit 236.3 188.1 134.4 104.1
Gross margin % 34.9% 34.7% 35.2% 33.7%
Operating expenses(1) (323.0) (260.8) (173.3) (142.5)
of which depreciation & amortisation 167.3 131.3 89.3 72.6
Adjusted EBIT(2) (86.7) (72.7) (38.9) (38.4)
Adjusting operating items (6.5) (17.2) (3.4) (3.8)
Operating loss (93.2) (89.9) (42.3) (42.2)
Net financing expense (49.0) (195.5) (25.7) (131.6)
of which adjusting financing (expense)/ income (37.9) 24.4 (24.1) 13.6
Loss before tax (142.2) (285.4) (68.0) (173.8)
Taxation 0.2 (4.4) (0.2) (4.0)
Loss for the period (142.0) (289.8) (68.2) (177.8)
Adjusted EBITDA(1,2) 80.6 58.6 50.4 34.2
Adjusted EBITDA margin 11.9% 10.8% 13.2% 11.1%
Adjusted loss before tax(1) (97.8) (292.6) (40.5) (183.6)
EPS (pence) (20.3) (88.4) (3)
Adjusted EPS (pence) (2) (13.9) (90.0) (3)
1 Excludes adjusting items; 2 Alternative Performance Measures are defined in
Appendix; 3 2022 is restated for the impact of the bonus element of the Rights
Issue undertaken in Q3 2022
In the first half of 2023, gross profit of £236m increased by £48m, or 26%
year-on-year. This translated to a gross margin of 35%, a year-on-year
expansion of approximately 20 basis points. The gross margin performance was
primarily driven by higher year-on-year gross margin within the core range of
vehicles, partially offset by higher manufacturing, logistics and other costs,
as well as FX headwinds.
The Company continues to target a 40%+ contribution margin from its future
products.
In the first half of 2023, adjusted EBITDA of £81m increased by £22m, or 38%
year-on-year. This translated to an adjusted EBITDA margin of 12%, a
year-on-year expansion of approximately 110 basis points. The year-on-year
increase in adjusted EBITDA was primarily due to higher year-on-year gross
profit, as described above, partially offset by increased investments in brand
and marketing initiatives to support our future growth, as well as higher
general costs.
Operating loss of £93m in the first half of 2023 compared to £90m loss in
the prior year period. The £3m year-on-year change was primarily driven by:
- a £36m increase in depreciation and amortisation charges,
principally related to higher Aston Martin Valkyrie production and deliveries,
as well as the launch of new products such as DBX707, V12 Vantage and DBS770
Ultimate
- increased brand and product launch investments such as the DB12
and Valhalla, as well as marketing initiatives to support our future growth
- higher general costs, including inflationary pressures
These factors were partially offset by:
- higher year-on-year gross profit as described above
Adjusting operating items of £7m in the first half of 2023 (H1 2022: £17m)
predominantly related to ERP implementation costs.
Net financing costs of £49m in the first half of 2023 decreased significantly
from £196m in the prior year period comprising of interest on Senior Secured
Notes and a non-cash FX benefit of £62m (H1 2022: £134m charge). The £38m
adjusting finance charge was due to movements in fair value of outstanding
warrants (H1 2022: £24m credit).
The loss before tax was £142m, an improvement of £143m year-on-year (H1
2022: £285m loss) and the loss for the period was £142m, an improvement of
£148m year-on-year (H1 2022: £290m), both impacted by the significant
reduction in net financing costs related to the US dollar-denominated Senior
Secured Notes.
The total effective tax rate for the period to 30 June 2023 was 0.1% which is
predominantly due to current period deferred tax asset movements not being
recognised (such that the tax credit related to the financial performance of
the overseas subsidiaries during the six month period) (H1 2022: -1.5%).
The weighted average share count at 30 June 2023 was 704 million, giving an
adjusted EPS of (13.9)p (H1 restated 2022: (90.0)p).
Cash flow and net debt
£m H1 2023 H1 2022 Q2 2023 Q2 2022
Cash generated from/(used in) operating activities 17.5 (33.1) 50.5 (76.3)
Cash used in investing activities (excl. interest) (180.2) (138.2) (94.9) (71.5)
Net cash interest paid (55.6) (62.5) (55.6) (60.6)
Free cash outflow (218.3) (233.8) (100.0) (208.4)
Cash inflow/(outflow) from financing activities (excl. interest) 44.7 (41.0) 98.9 (46.9)
Decrease in net cash (173.6) (274.8) (1.1) (255.3)
Effect of exchange rates on cash and cash equivalents (9.6) 12.1 (6.6) 7.7
Cash balance 400.1 156.2 400.1 156.2
Cash flow from operating activities was an inflow of £18m in the first half
of 2023 (H1 2022: £33m outflow), with a significant improvement in Q2. The
year-on-year change in cash flow from operating activities in H1 2023 was
primarily driven by a working capital outflow of £37m (H1 2022: £67m
outflow). The largest driver was a £33m increase in inventories (H1 2022:
£105m increase), primarily driven by higher levels of ordered vehicles at the
end of the period, as well as initiatives to improve production and supply
chain resilience ahead of upcoming vehicle launches. This was partially offset
by a £22m decrease in receivables (H1 2022: £41m increase), driven by
improved collections.
Although demand for Specials remains strong, there was a £17m decrease in the
deposit balance in the first half of 2023, as new deposits were more than
offset by the unwind from Specials delivered in the period. We expect to see
new deposits increase in the second half of the year, following the launch of
Valour in July 2023, as well as higher deposits from Valhalla.
Capital expenditure was £181m in the first half of 2023, an increase of £43m
year-on-year, with investment focused on the future product pipeline,
particularly the next generation of sports cars, as well as development of the
Company's electrification programme.
Free cash outflow of £218m in the first half of 2023 compared to a £234m
outflow in the first half of 2022, with the improvement in cash flow from
operating activities detailed above, offset by the year-on-year increase in
capital expenditure.
£m 30-June-23 31-Dec-22 30-June-22
Loan notes (1,051.9) (1,104.0) (1,221.5)
Inventory financing (39.9) (38.2) (38.8)
Bank loans and overdrafts (57.8) (107.1) (62.3)
Lease liabilities (IFRS 16) (96.7) (99.8) (102.0)
Gross debt (1,246.3) (1,349.1) (1,424.6)
Cash balance 400.1 583.3 156.2
Cash not available for short term use - 0.3 2.0
Net debt (846.2) (765.5) (1,266.4)
Cash at 30 June 2023 of £400m is after a £50m repayment of the revolving
credit facility during H1 2023 as well as £95m of proceeds from the
subscription shares issued to Geely International (Hong Kong) Limited. Net
debt was £846m, up from £766m at 31 December 2022, including a
positive £62m non-cash FX revaluation of US dollar-denominated debt as the
GBP strengthened against the US dollar during the period.
APPENDICES
Dealerships
30 June-23 31 Dec-22 30 June-22
UK 20 21 21
Americas 44 44 44
EMEA ex. UK 52 52 52
APAC 47 48 49
Total 163 165 166
Number of countries 54 54 55
Units
Wholesale Q1-23 Q1-22 Change Q2-23 Q2-22 Change H1-23 H1-22 Change
UK 220 264 (17%) 225 224 0% 445 488 (9%)
Americas 467 361 29% 595 359 66% 1,062 720 48%
EMEA ex. UK 343 9 (#_ftn7) 271 27% 491 343 43% 834 614 36%
APAC 239 10 (#_ftn8) 272 (12%) 374 582 (36%) 613 854 (28%)
Total 1,269 1,168 9% 1,685 1,508 12% 2,954 2,676 10%
Wholesale Q1-23 Q1-22 Change Q2-23 Q2-22 Change H1-23 H1-22 Change
GT/Sport 582 728 (20%) 787 833 (6%) 1,369 1,561 (12%)
SUV 669 421 59% 878 662 33% 1,547 1,083 43%
Specials 18 19 (5%) 20 13 54% 38 32 19%
Total 1,269 1,168 9% 1,685 1,508 12% 2,954 2,676 10%
Note: GT/Sport includes Vantage, DB11 and DBS
Summary financials
£m Q1 2023 Q1 2022 Q2 2023 Q2 2022 H1 2023 H1 2022
Total wholesale volumes(1) 1,269 1,168 1,685 1,508 2,954 2,676
Revenue 295.9 232.7 381.5 309.0 677.4 541.7
Gross profit 101.9 84.0 134.4 104.1 236.3 188.1
Gross margin 34.4% 36.1% 35.2% 33.7% 34.9% 34.7%
Adjusted EBITDA 30.2 24.4 50.4 34.2 80.6 58.6
Adjusted EBITDA margin 10.2% 10.5% 13.2% 11.1% 11.9% 10.8%
Adjusted EBIT (47.8) (34.3) (38.9) (38.4) (86.7) (72.7)
Adjusting operating items (3.1) (13.4) (3.4) (3.8) (6.5) (17.2)
Adjusting financing items (13.8) 10.8 (24.1) 13.6 (37.9) 24.4
Operating loss (50.9) (47.7) (42.3) (42.2) (93.2) (89.9)
Loss before tax (74.2) (111.6) (68.0) (173.8) (142.2) (285.4)
Note: For definition of alternative performance measures please see the
Appendices and note 17 of the Interim Financial Statements; (1)Number of
vehicles including specials
Summary cash flow statement
£m Q1 2023 Q1 2022 Q2 2023 Q2 2022 H1 2023 H1 2022
Cash (used in)/ generated from operating activities (33.0) 43.2 50.5 (76.3) 17.5 (33.1)
Cash used in investing activities (excl. interest) (85.3) (66.7) (94.9) (71.5) (180.2) (138.2)
Net interest paid - (1.9) (55.6) (60.6) (55.6) (62.5)
Free cash outflow (118.3) (25.4) (100.0) (208.4) (218.3) (233.8)
Cash (outflow)/inflow from financing activities (excl. interest) (54.2) 5.9 98.9 (46.9) 44.7 (41.0)
Decrease in net cash (172.5) (19.5) (1.1) (255.3) (173.6) (274.8)
Effect of exchange rates on cash & cash equivalents (3.0) 4.4 (6.6) 7.7 (9.6) 12.1
Cash balance 407.8 403.8 400.1 156.2 400.1 156.2
Alternative Performance Measure
£m H1 2023 H1 2022
Loss before tax (142.2) (285.4)
Adjusting operating expense 6.5 17.2
Adjusting finance expense 37.9 -
Adjusting finance (income) - (24.4)
Adjusted EBT (97.8) (292.6)
Adjusted finance (income) (66.8) (1.2)
Adjusted finance expense 77.9 221.1
Adjusted EBIT (86.7) (72.7)
Reported depreciation 45.7 38.2
Reported amortisation 121.6 93.1
Adjusted EBITDA 80.6 58.6
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 underlying performance of the Group,
enhance the comparability of information between reporting periods, and are
used internally by the Directors to measure the Group's performance.
· Adjusted EBIT is loss from operating activities before adjusting
items
· Adjusted EBITDA removes depreciation, loss/(profit) on sale of
fixed assets and amortisation from adjusted operating loss
· Adjusted operating margin is adjusted EBIT divided by revenue
· Adjusted EBITDA margin is adjusted EBITDA (as defined above)
divided by revenue
· Adjusted Earnings Per Share is loss after income tax before
adjusting items, divided by the weighted average number of ordinary shares in
issue during the reporting period
· Net Debt is current and non-current borrowings in addition to
inventory financing arrangements, lease liabilities recognised following the
adoption of IFRS 16, less cash and cash equivalents and cash held not
available for short-term use
· Free cashflow is represented by cash (outflow)/inflow from
operating activities plus the cash used in investing activities (excluding
interest received) plus interest paid in the year less interest received.
Principal risks and uncertainties
The principal risks and uncertainties that could substantially affect the
Group's business and results were previously reported on pages 82 to 84 of the
2022 Annual Report and Accounts. The Group's risk environment has been
reassessed as at 30 June 2023 to consider any significant changes to the
Group's previous risk assessment including any new and emerging risks and
opportunities.
There have not been any significant changes to the principal risks previously
disclosed within the 2022 Annual Report and Accounts and the principal risks
and uncertainties that the Group faces for the second half of the year are
consistent with those previously reported as summarised below.
Strategic risks
Macro-economic and political instability: Exposure to multiple political and
economic factors could impact customer demand or affect the markets in which
we operate.
The Group operates in the ultra-luxury segment (ULS) vehicle market and
accordingly its performance is linked to market conditions and consumer demand
in that market. Sales of ULS vehicles are affected by general economic
conditions and can be materially affected by the economic cycle. Demand for
luxury goods, including ULS vehicles, is volatile and depends to a large
extent on the general economic, political, and social conditions in a given
market. Furthermore, economic slowdowns in the past have significantly
affected the automotive and related markets. Periods of deteriorating general
economic conditions may result in a significant reduction in ULS vehicle
sales, which may put downward pressure on the Group's product and service
prices and volumes, and negatively affect profitability. These effects may
have a more pronounced effect on the Group's business, due to the relatively
small scale of its operations and its limited product range.
Political change has the potential to directly affect the Group through the
introduction of new laws (including tax and environmental laws) or regulations
or indirectly by altering customer sentiment. Government policy in areas such
as trade and the environment also have the opportunity to impact the business
through the introduction of new barriers, for example in relation to the trade
between the United Kingdom and the European Union or through changes in
emissions legislation. Any future change in government in both the United
Kingdom and the Group's key markets could have an impact on the Group due to
changes in policy, legislation, or regulatory interpretation.
Brand / reputational damage: Our brand and reputation are critical in
securing demand for our vehicles and in developing additional revenue streams.
The Group's success depends on the preservation and enhancement of our brand
and reputation with ultra-luxury consumers. Damage caused by any reason
(e.g. poor customer experience, poor design, quality issues, late delivery)
could significantly impact our ability to deliver planned volume growth. We
promote brand awareness and identity through our marketing activity,
leveraging the global reach of the Aston Martin Aramco Cognizant Formula
One(TM) Team. We continue to pursue our 'build to order' strategy, which
combined with the positive impact of our fixed marketing activity is driving
brand exclusivity. Investment in new technology combined with delivery of
our three-pillar strategy will further enhance the appeal of the brand and
increase our customer base.
Technological advancement: It is essential to maintain pace with
technological development to meet evolving customer expectation, remain
competitive and stay ahead of regulatory requirements.
To remain competitive the Group needs to incorporate the latest technologies
(e.g. electrification, active safety, connected car, autonomous driving) into
its products and keep pace with the transition to electrified and lower
emission powertrains. Strategic agreements with key suppliers, including
Lucid and Mercedes Benz AG provide access to technology that may otherwise be
too costly to develop internally.
Operational risks
Talent acquisition and retention: We may fail to attract, retain, engage and
develop a productive workforce or develop key talent.
The Group's future success depends substantially on the continued service and
performance of the members of its senior management team for running its daily
operations, as well as planning and executing its strategy. The Group is also
dependent on its ability to retain and replace its design, engineering, and
technical personnel so that the Group is able to continue to produce vehicles
that are competitive in terms of performance, quality, and aesthetics. There
is strong competition worldwide for experienced senior management and
personnel with technical and industry expertise. If the Group loses the
services of its senior management or other key personnel, the Group may have
difficulty and incur additional costs in replacing them. If the Group is
unable to find suitable replacements in a timely manner, its ability to
realise its strategic objectives could be impaired. In addition, the Group's
ability to realise its strategic objectives could also be impaired if the
Group is unable to recruit sufficient numbers of new personnel of the right
calibre and with the required skills and capabilities to support its strategic
objectives.
Programme delivery: Failure to implement major programmes on time, within
budget and to the right technical and quality specification could jeopardise
delivery of our strategy and have significant adverse financial and
reputational consequences.
The Group employ vehicle line Project Management teams to deliver significant
programmes using our 'Mission' programme delivery governance methodology.
Achieving financial and cost-reduction targets: The Group's size and
low-volume demand-led strategy may inhibit its ability to deliver targeted
cost reductions or work within budget constraints while delivering the planned
vehicle programme.
The Group's ability to successfully implement its strategy will depend on, at
least in part, its ability to achieve its financial targets as well as to
maintain capital expenditures without limiting its ability to introduce new
vehicles in line with changes in trends and advances in technology. Market
conditions and trends change over time, with current impacts being seen as a
result of higher rates of inflation, increasing interest rates, rising
commodity prices and the increasing risk of regional or global recession.
These may inhibit the Group's ability to achieve these goals, or to achieve
them only in part or later than expected, resulting in increased costs, damage
to the Aston Martin brand, decreased sales, elevated levels of Group or dealer
stocks and/or liquidity constraints, any of which could have a material
adverse effect on the Group's business, financial condition and results of
operations.
Cyber security and IT resilience: Breach of cyber security could result in a
system outage, impacting core operations and / or result in a major data loss
leading to reputational damage and financial loss.
The increasing threat of cyberattack presents risk to the availability,
confidentiality and integrity of information and IT-supported operating
systems. A robust technology environment is critical to the Group's success
and operational resilience. The Group is investing in tools and resources to
enhance the control environment and reduce the risk of core business
operational disruption or major data loss. The next phase of the
implementation of a new ERP system through 2023 will improve the operational
resilience of our IT environment.
Supply chain disruption: Supply chain disruption could result in production
stoppages, delays, quality issues and increased costs.
The Group's dependence on a limited number of suppliers exposes the Group to
the risk of increased material costs due to suppliers' pricing power, limited
availability and disrupted delivery schedules, including as a result of the
effects of ongoing global supply chain issues, and the risk of the quality of
the products produced by that supplier declining. If one or more of the
Group's suppliers becomes unable or unwilling to fulfil its delivery
obligations, or is unable to supply products of the requisite quality for any
reason (including favouring other purchasers due to better pricing or volume,
financial difficulties, damage to production, transportation difficulties,
labour disruption, supply bottlenecks of raw materials and pre-products,
natural disasters, other pandemics, the ongoing war in Ukraine and other wars,
terrorism or political unrest), there is a risk that the Group's ability to
produce the targeted number or quality of vehicles could be negatively
affected, which could adversely affect production and therefore demand for its
vehicles.
Compliance risks
Compliance with laws and regulations: Non-compliance with laws or regulations
could damage our corporate reputation and subject the Group to significant
financial penalties and / or trading sanctions / restrictions. Non-compliance
with product and supply chain due diligence regulations could prevent the
Group from competing in certain markets.
The Group is subject to a broad range of national and regional laws and
regulations, some of which are specific to the automotive industry e.g.
vehicle emissions, fuel consumption, vehicle certification requirements,
connected car regulations; others which are applicable to businesses conduct
more generally e.g. competition law, health and safety, data protection,
corporate governance rules, employment laws, and taxation. Changes to laws and
regulations, or a major compliance breach, could have a material impact on the
business. The Group has been investing in compliance activities, including
experienced personnel, and developing its risk management systems.
Failure to keep pace with increasing stakeholder expectations to not just meet
but exceed evolving ESG requirements could result in brand / reputational
damage which could ultimately affect our sales pipeline and planned growth. As
emissions regulations become increasingly stringent the Group continues to
invest in product portfolio expansion to accelerate its transition towards
electrified powertrains and reduced emissions.
Climate Change risks
Climate change: The impact of climate change could significantly impact demand
for our vehicles, our ability to sell within certain markets or have financial
consequences through increased carbon pricing, taxes and other regulatory
restrictions on Internal Combustion Engine vehicles.
The Group faces a number of transition and physical climate related risks.
Transitioning to a lower-carbon economy poses the most significant climate
related risk with the Group being exposed to:
• Policy and legal risk: Capital and operating expenses
required in order to comply with environmental laws and regulations can be
significant. New policy actions and/or legislation changes relating to
environmental matters, such as the implementation of carbon pricing mechanisms
to reduce GHG emissions or the imposition of more stringent vehicle emissions
regulations, could give rise to significant costs.
• Technology risk: New technologies that support the
transition to lower-carbon, energy-efficient economic system, including the
increasing demand for lower emission vehicles and electrified powertrains,
could have a significant impact on the Group. The Group many be unable to
develop lower capacity and fully electric vehicles successfully, as quickly as
its competitors or at a reasonable cost.
• Market risk: Customer preferences may change more
quickly than anticipated away from traditional ICEs towards alternative
non-ICE powertrains (e.g. plug-in hybrid electric vehicle, battery electric
vehicles, Hydrogen, Synthetic fuels). This could significantly affect demand
for the Group's products. Increasing consumer awareness around sustainability
and the resultant desire to buy products which use sustainable materials may
adversely impact demand for the Group's products.
• Reputation risk: Customers and communities are
increasingly concerned with an organisation's contribution to or detraction
from the transition to a lower-carbon economy. If the Group does not deliver
on its net-zero goals, sustainability targets, the production of hybrid and
fully-electric models or does not otherwise demonstrate its commitment to
reducing its impact on climate change, this could have a material adverse
effect on the Group.
Physical risks resulting from climate change can be event driven (such as an
extreme weather event) or longer-term shifts in climate patterns (such as
global warming). Increased frequency and severity of extreme weather events
could lead to damage to assets and/or facilities or lead to production or
supply chain disruption. In each case, this could have a material adverse
effect on the Group's business, financial condition, and results of
operations.
Financial risks
Liquidity: The Group may not be able to generate sufficient cash to fund its
capital expenditure, service its debt or sustain its operations.
The Group's significant leverage and existing levels of debt may make it
difficult to obtain additional debt financing should the need arise due to
unforeseen economic shocks. Failure to collect planned deposits could place
additional stress on the Group's liquidity. The Group's liquidity requirements
arise primarily from its need to fund capital expenditure for product
development, including the electrification of its product portfolio, and to
service debt. The Group is also subject to foreign exchange risks and
opportunities and manages its exposure in accordance with the Group Hedging
Policy.
Impairment of capitalised development costs: The value of capitalised
development costs continue to grow as we invest in and expand our product
portfolio.
The Group's balance sheet and income statement may be adversely impacted by an
impairment in the carrying value of capitalised development costs. A
significant reduction in vehicle lifecycle profitability could result in the
need to impair the capitalised development intangible asset. Where potential
impairment triggers are identified management perform assessments to evaluate
the recoverability of capitalised development costs.
The risks and opportunities summarised above, linkage to the Group's strategy,
and additional mitigating actions taken in respect of them, are explained and
described in more detail on pages 82 to 84 of the 2022 Annual Report and
Accounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months ended 6 months ended 12 months ended
30 June 2023 30 June 2022 31 December 2022
Notes Adjusted Adjusting items* Total Adjusted Adjusting items* Total Adjusted Adjusting items* Total
£m £m £m £m £m £m £m £m £m
Revenue 2 677.4 - 677.4 541.7 - 541.7 1,381.5 - 1,381.5
Cost of sales (441.1) - (441.1) (353.6) - (353.6) (930.8) - (930.8)
Gross profit 236.3 - 236.3 188.1 - 188.1 450.7 - 450.7
Selling and distribution expenses (70.7) - (70.7) (51.9) - (51.9) (113.0) - (113.0)
Administrative expenses 3 (252.3) (6.5) (258.8) (208.9) (17.2) (226.1) (455.6) (23.9) (479.5)
Operating loss (86.7) (6.5) (93.2) (72.7) (17.2) (89.9) (117.9) (23.9) (141.8)
Finance income 3, 4 66.8 - 66.8 1.2 24.4 25.6 3.0 12.5 15.5
Finance expense 3,5 (77.9) (37.9) (115.8) (221.1) - (221.1) (336.1) (32.6) (368.7)
(Loss)/profit before tax (97.8) (44.4) (142.2) (292.6) 7.2 (285.4) (451.0) (44.0) (495.0)
Income tax credit/(charge) 3, 6 0.2 - 0.2 (2.6) (1.8) (4.4) (32.7) - (32.7)
(Loss)/profit for the period (97.6) (44.4) (142.0) (295.2) 5.4 (289.8) (483.7) (44.0) (527.7)
(Loss)/profit for the period attributable to:
Owners of the group (142.6) (290.0) (528.6)
Non-controlling interests 0.6 0.2 0.9
(142.0) (289.8) (527.7)
Other comprehensive income
Items that will never be reclassified to the Income Statement
Remeasurement of defined benefit pension liability 0.3 6.1 6.8
Taxation on items that will never be reclassified to the Income Statement (0.1) (1.5) (1.7)
Items that are or may be reclassified to the Income Statement
Foreign exchange translation differences (4.5) 4.3 3.8
Fair value adjustment on cash flow hedges 1.5 (4.2) (6.1)
Amounts recycled to the Income Statement in respect of cash flow hedges (4.4) (0.8) 2.9
Taxation on items that may be reclassified to the Income Statement 0.7 1.3 0.8
Other comprehensive income for the period, net of income tax (6.5) 5.2 6.5
Total comprehensive loss for the period (148.5) (284.6) (521.2)
Total comprehensive (loss)/income for the period attributable to:
Owners of the group (149.1) (284.8) (522.1)
Non-controlling interests 0.6 0.2 0.9
(148.5) (284.6) (521.2)
Earnings per ordinary share
Basic 7 (20.3p) (88.4p)** (124.5p)
Diluted 7 (20.3p) (88.4p)** (124.5p)
* Adjusting items are detailed in note 3.
** EPS as at 30 June 2022 has been restated reflecting the bonus element of
the rights issue undertaken in September 2022 (note 7).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Capital Redemption Merger Reserve Capital Reserve Translation Reserve Hedge Reserve Retained Earnings Non-controlling Interest Total Equity
Reserve
£m £m £m £m £m £m £m £m £m £m
At 1 January 2023 69.9 1,697.4 9.3 143.9 6.6 6.5 4.3 (1,184.9) 19.5 772.5
Total comprehensive loss for the period
(Loss)/profit for the period - - - - - - - (142.6) 0.6 (142.0)
Other comprehensive income
Foreign currency translation differences - - - - - (4.5) - - - (4.5)
Fair value movement - cash flow hedges - - - - - - 1.5 - - 1.5
Amounts recycled to the Income Statement - cash flow hedges - - - - - - (4.4) - - (4.4)
Remeasurement of defined benefit liability (note 13) - - - - - - - 0.3 - 0.3
Taxation on other comprehensive income - - - - - - 0.7 (0.1) - 0.6
Total other comprehensive (loss)/income - - - - - (4.5) (2.2) 0.2 - (6.5)
Total comprehensive (loss)/income for the period - - - - - (4.5) (2.2) (142.4) 0.6 (148.5)
Transactions with owners, recorded directly in equity
Issuance of new shares (note 14) 2.8 91.7 - - - - - - - 94.5
Issuance of share to Employee Benefit Trust (notes 7, 14) 0.1 - - - - - - (0.1) - -
Credit for the period under equity settled share-based payments - - - - - - - 2.1 - 2.1
Shares to be issued to warrant holders - - - - - - - 6.2 - 6.2
Total transactions with owners 2.9 91.7 - - - - - 8.2 - 102.8
At 30 June 2023 72.8 1,789.1 9.3 143.9 6.6 2.0 2.1 (1,319.1) 20.1 726.8
Share Capital Share Premium Capital Redemption Merger Reserve Capital Reserve Translation Reserve Hedge Reserve Retained Earnings Non-controlling Interest Total Equity
Reserve
£m £m £m £m £m £m £m £m £m £m
At 1 January 2022 11.6 1,123.4 9.3 143.9 6.6 2.7 6.7 (662.4) 18.6 660.4
Total comprehensive loss for the period
(Loss)/profit for the period - - - - - - - (290.0) 0.2 (289.8)
Other comprehensive income
Foreign currency translation differences - - - - - 4.3 - - - 4.3
Fair value movement - cash flow hedges - - - - - - (4.2) - - (4.2)
Amounts recycled to the Income Statement - cash flow hedges - - - - - - (0.8) - - (0.8)
Remeasurement of defined benefit liability - - - - - - - 6.1 - 6.1
Taxation on other comprehensive income - - - - - - 1.3 (1.5) - (0.2)
Total other comprehensive income/(loss) - - - - - 4.3 (3.7) 4.6 - 5.2
Total comprehensive income/(loss) for the period - - - - - 4.3 (3.7) (285.4) 0.2 (284.6)
Transactions with owners, recorded directly in equity
Credit for the period under equity settled share-based payments - - - - - - - 2.1 - 2.1
Tax on items credited to equity - - - - - - - (0.1) - (0.1)
Total transactions with owners - - - - - - - 2.0 - 2.0
At 30 June 2022 11.6 1,123.4 9.3 143.9 6.6 7.0 3.0 (945.8) 18.8 377.8
Share Share premium Merger reserve Capital redemption reserve Capital reserve Translation reserve Hedge reserves Retained earnings Non-controlling interest Total
capital £m £m £m £m £m £m £m £m equity
£m £m
At 1 January 2022 11.6 1,123.4 143.9 9.3 6.6 2.7 6.7 (662.4) 18.6 660.4
Total comprehensive loss for the year
(Loss)/profit for the year - - - - - - - (528.6) 0.9 (527.7)
Other comprehensive income
Foreign currency translation differences - - - - - 3.8 - - - 3.8
Fair value movement - cash flow hedges - - - - - - (6.1) - - (6.1)
Amounts recycled to the Income Statement - cash flow hedges - - - - - - 2.9 - - 2.9
Remeasurement of Defined Benefit liability - - - - - - - 6.8 - 6.8
Tax on other comprehensive income - - - - - - 0.8 (1.7) - (0.9)
Total other comprehensive income/(loss) - - - - - 3.8 (2.4) 5.1 - 6.5
Total comprehensive income/(loss) for the year - - - - - 3.8 (2.4) (523.5) 0.9 (521.2)
Transactions with owners, recorded directly in equity
Issuance of new shares 58.3 574.0 - - - - - - - 632.3
Credit for the year under equity-settled share-based payments - - - - - - - 1.0 - 1.0
Total transactions with owners 58.3 574.0 - - - - - 1.0 - 633.3
At 31 December 2022 69.9 1,697.4 143.9 9.3 6.6 6.5 4.3 (1,184.9) 19.5 772.5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Notes As at As at As at
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Non-current assets
Intangible assets 1,398.7 1,392.6 1,394.6
Property, plant and equipment 370.7 352.6 369.9
Right-of-use assets 70.7 76.6 74.4
Trade and other receivables 2.5 2.3 6.3
Deferred tax asset 137.2 157.3 133.7
1,979.8 1,981.4 1,978.9
Current assets
Inventories 320.6 307.6 286.2
Trade and other receivables 222.8 288.1 245.7
Income tax receivable 1.3 1.2 1.4
Other financial assets 11 8.3 9.2 8.8
Cash and cash equivalents 400.1 156.2 583.3
953.1 762.3 1,125.4
Total assets 2,932.9 2,743.7 3,104.3
Current liabilities
Borrowings 9 57.8 62.3 107.1
Trade and other payables 829.5 842.8 876.3
Income tax payable 1.9 4.0 6.3
Other financial liabilities 11 64.3 15.4 26.2
Lease liabilities 7.3 7.4 7.4
Provisions 12 18.3 17.9 18.6
979.1 949.8 1,041.9
Non-current liabilities
Borrowings 11 1,051.9 1,221.5 1,104.0
Trade and other payables 8.2 9.2 9.1
Lease liabilities 89.4 94.6 92.4
Provisions 12 22.0 20.6 22.5
Employee benefits 13 54.8 68.8 61.2
Deferred tax liabilities 0.7 1.4 0.7
1,227.0 1,416.1 1,289.9
Total liabilities 2,206.1 2,365.9 2,331.8
Net assets 726.8 377.8 772.5
Capital and reserves
Share capital 14 72.8 11.6 69.9
Share premium 1,789.1 1,123.4 1,697.4
Merger reserve 143.9 143.9 143.9
Capital redemption reserve 9.3 9.3 9.3
Capital reserve 6.6 6.6 6.6
Translation reserve 2.0 7.0 6.5
Hedge reserve 2.1 3.0 4.3
Retained earnings (1,319.1) (945.8) (1,184.9)
Equity attributable to owners of the group 706.7 359.0 753.0
Non-controlling interests 20.1 18.8 19.5
Total shareholders' equity 726.8 377.8 772.5
CONSOLIDATED STATEMENT OF CASH FLOWS
Notes 6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Operating activities
Loss for the period (142.0) (289.8) (527.7)
Adjustments to reconcile loss for the period to net cash inflow from operating
activities
Tax (credit)/charge 6 (0.2) 4.4 32.7
Net finance costs 49.0 195.5 353.2
Depreciation of property, plant and equipment 41.0 33.8 77.8
Depreciation of right-of-use assets 4.7 4.4 11.0
Amortisation of intangible assets 121.6 93.1 219.3
Difference between pension contributions paid and amounts recognised in (7.5) (4.6) (12.1)
operating profit
Increase in inventories (32.7) (104.6) (78.4)
Decrease/(increase) in trade and other receivables 21.5 (41.0) 0.1
(Decrease)/increase in trade and other payables (8.7) 68.3 81.5
(Decrease)/increase in advances and customer deposits (17.2) 10.4 (17.9)
Movement in provisions (0.2) (1.8) 0.7
Other non-cash movements (3.8) 6.0 (2.0)
Other non-cash movements - (Increase)/decrease in other derivative contracts (0.8) (0.4) (2.3)
Other non-cash movements - Movements in RDEC credit (2.9) (1.4) (3.5)
Cash inflow/(outflow) from operations 21.8 (27.7) 132.4
Decrease/(increase) in cash held not available for short-term use 0.3 (0.2) 1.5
Income taxes paid (4.6) (5.2) (6.8)
Net cash inflow/(outflow) from operating activities 17.5 (33.1) 127.1
Cash flows from investing activities
Interest received 5.2 0.7 2.2
Repayment of loan assets 0.5 - -
Payments to acquire property, plant and equipment (43.8) (29.1) (58.6)
Cash outflow on development expenditure (136.9) (109.1) (228.3)
Net cash used in investing activities (175.0) (137.5) (284.7)
Cash flows from financing activities
Interest paid (60.8) (63.2) (141.2)
Proceeds from equity share issue 94.8 - 653.9
Proceeds received in advance of the exercise of warrants 6.2 - -
Proceeds from financial instrument utilised during refinancing transactions - - 4.1
Principal element of lease payments 10 (4.0) (6.4) (10.0)
Repayment of existing borrowings 10 (49.5) (52.3) (172.7)
Premium paid upon redemption of borrowings - - (14.3)
Proceeds from inventory repurchase arrangement 10 - 37.7 75.7
Repayment of inventory repurchase arrangement 10 - (20.0) (60.0)
Transaction fees on issuance of shares (2.8) - (18.6)
Transaction fees on financing activities - - (1.9)
Net cash (outflow)/inflow from financing activities (16.1) (104.2) 315.0
Net (decrease)/increase in cash and cash equivalents (173.6) (274.8) 157.4
Cash and cash equivalents at the beginning of the period 583.3 418.9 418.9
Effect of exchange rates on cash and cash equivalents (9.6) 12.1 7.0
Cash and cash equivalents at the end of the period 400.1 156.2 583.3
Notes to the Interim Condensed Financial Statements
1. Basis of preparation
The results for the 6 month period ended 30 June 2023 have been reviewed by
Ernst & Young LLP, the Group's auditor, and a copy of their review report
appears at the end of this interim report. The financial information for the
year ended 31 December 2022 does not constitute statutory accounts as defined
in section 435 of the Companies Act 2006. The auditor's report on the
statutory accounts for the year ended 31 December 2022 was not qualified and
did not draw attention to any matters by way of emphasis and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006. A copy of the
statutory accounts for the year ended 31 December 2022 prepared in accordance
with UK adopted international accounting standards have been delivered to the
Registrar of Companies. The annual report for the year ended 31 December 2023
will be prepared in accordance with UK adopted international accounting
standards.
Aston Martin Lagonda Global Holdings plc (the "Company") is a company
incorporated and domiciled in the UK. The Consolidated Interim Condensed
Financial Statements of the Company as at the end of the period ended 30 June
2023 comprise the Company and its subsidiaries (together referred to as the
'Group').
Going Concern
The Group meets its day-to-day working capital requirements and medium-term
funding requirements through a mixture of $1,143.7m of 1st Lien notes at 10.5%
which mature in November 2025, $236.1m of 2nd Lien split coupon notes at 15%
per annum (8.89% cash and 6.11% PIK) which mature in November 2026, a
revolving credit facility (£90.6m) which matures August 2025, facilities to
finance inventory, a bilateral RCF agreement and a wholesale vehicle financing
facility. Under the revolving credit facility the Group is required to comply
with a leverage covenant tested quarterly.
The directors have developed trading and cash flow forecasts for the period
from the date of approval of these Interim Condensed Financial Statements
through 30 September 2024 (the "going concern review period"). These forecasts
show that the Group has sufficient financial resources to meet its obligations
as they fall due and to comply with covenants for the going concern review
period.
The forecasts reflect the Group's ultra-luxury performance-oriented strategy,
balancing supply and demand and the actions taken to improve cost efficiency
and gross margin. The forecasts include the costs of the Group's
environmental, social and governance ("ESG") commitments and make assumptions
in respect of future market conditions and, in particular, wholesale volumes,
average selling price, the launch of new models, and future operating costs.
The nature of the Group's business is such that there can be variation in the
timing of cash flows around the development and launch of new models. In
addition, the availability of funds provided through the vehicle wholesale
finance facility changes as the availability of credit insurance and sales
volumes vary, in total and seasonally. The forecasts take into account these
factors to the extent which the Group directors consider them to represent
their best estimate of the future based on the information that is available
to them at the time of approval of these Interim Condensed Financial
Statements.
The Group directors have considered a severe but plausible downside scenario
that includes considering the impact of a 25% reduction in DBX volumes and a
10% reduction in sports volumes from forecast levels, operating costs higher
than the base plan, incremental working capital requirements such as reduced
deposit inflows or increased deposit outflows and the impact of the
strengthening of the sterling-dollar exchange rate.
The Group plans to make continued investment for growth in the period and,
accordingly, funds generated through operations are expected to be reinvested
in the business mainly through new model development and other capital
expenditure. To a certain extent such expenditure is discretionary and, in the
event of risks occurring which could have a particularly severe effect on the
Group, as identified in the severe but plausible downside scenario, actions
such as constraining capital spending, working capital improvements, reduction
in marketing expenditure and the continuation of strict and immediate expense
control would be taken to safeguard the Group's financial position.
In addition, the Group also considered the circumstances which would be needed
to exhaust the Group's liquidity over the assessment period, a reverse stress
test. This would indicate that total core vehicle sales (DBX and GT/Sports)
would need to reduce by more than 50% from forecast levels without any of the
above mitigations to result in having no liquidity. The likelihood of
management not taking substantial mitigating actions over such a long period
(such as reducing capital spending to preserve liquidity) together with these
circumstances occurring is considered remote both in terms of the magnitude of
the reduction and occurrence over such a long period.
Accordingly, after considering the forecasts, appropriate sensitivities,
current trading and available facilities, the directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future and to comply with its financial
covenants and, therefore, the directors continue to adopt the going concern
basis in preparing the Interim Condensed Financial Statements.
Statement of compliance
These Interim Condensed Financial Statements have been prepared in accordance
with UK adopted International Accounting Standard 34, "Interim Financial
Reporting". They do not include all the information required for full annual
financial statements and should be read in conjunction with the Consolidated
Financial Statements of the Group for the year ended 31 December 2022.
Significant accounting policies
These Interim Condensed Financial Statements have been prepared applying the
accounting policies and presentation that were applied in the preparation of
the Group's published Consolidated Financial Statements for the year ended 31
December 2022. A number of new or amended standards became applicable for the
current reporting period and the Group did not have to change its accounting
policies or make retrospective adjustments as a result of adopting these
standards. The Group has not early adopted any standard, interpretation or
amendment that has been issued but is not yet effective. The significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied
to the consolidated financial statements for the year ended 31 December 2022.
During the period the Company established an Employee Benefit Trust which was
formed to satisfy awards under selected parts of the Group's long term
incentive arrangements. The Group has concluded that, on balance, it has
control over the Trust and therefore the Trust is included in the consolidated
result of the Group. During the 6 months ended 30 June 2023, 1,017,505
ordinary shares were issued to the Trust to satisfy awards made under the 2023
employee share incentive plan (note 14). 1,017,505 shares were held by the
Trust at the Balance Sheet date.
2. Segmental information
Operating segments are defined as components of the Group about which separate
financial information is available and is evaluated regularly by the chief
operating decision-maker in assessing performance. The Group has only one
operating segment, the automotive segment, and therefore no separate segmental
report is disclosed. The automotive segment includes all activities relating
to design, development, manufacture and marketing of vehicles including
consulting services; as well as the sale of parts, servicing and automotive
brand activities from which the Group derives its revenues.
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
Revenue £m £m £m
Analysis by category
Sale of vehicles 627.3 499.6 1,291.5
Sale of parts 40.3 32.9 70.8
Servicing of vehicles 4.2 5.0 9.3
Brands and motorsport 5.6 4.2 9.9
677.4 541.7 1,381.5
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
Revenue £m £m £m
Analysis by geographic location
United Kingdom 134.3 98.6 366.0
The Americas 214.5 139.6 401.8
Rest of Europe, Middle East & Africa 199.2 138.9 260.2
Asia Pacific 129.4 164.6 353.5
677.4 541.7 1,381.5
3. Adjusting items
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
£m £m £m
ERP implementation costs(1) (6.1) (1.2) (6.9)
Defined Benefit pension scheme closure costs(2) (0.4) (13.0) (13.5)
Director settlement and incentive arrangements(3) - (3.0) (3.5)
(6.5) (17.2) (23.9)
Adjusting finance income:
Gain on financial instruments recognised at fair value through Income - 24.4 8.4
Statement(4)
Foreign exchange gain on financial instrument utilised during - - 4.1
refinance transactions(5)
Adjusting finance expenses:
Loss on financial instruments recognised at fair value through Income (37.9) - -
Statement(4)
Premium paid on the early redemption of Senior Secured Notes(5) - - (14.3)
Write-off of capitalised borrowing fees upon early settlement of Senior - - (16.4)
Secured Notes(5)
Professional fees incurred on refinancing expensed directly to the - - (1.9)
Income Statement(5)
Adjusting items before tax (44.4) 7.2 (44.0)
Tax charge on adjusting items(6) - (1.8) -
Tax credit due to remeasurement of deferred tax on previously classified - - -
adjusting items(6)
Adjusting items after tax (44.4) 5.4 (44.0)
1. In the 6 months ended 30 June 2023 the Group incurred further
implementation costs for a cloud-based Enterprise Resource Planning (ERP)
system for which the Group will not own any Intellectual Property. £6.1m of
costs have been incurred in the period and expensed to the Income Statement.
The project remains ongoing for remaining functions of the Group following the
migration of the Order to Cash workstream during the first half of the year.
Due to the infrequent recurrence of such costs and the expected quantum during
the implementation phase, these have been separately presented as adjusting.
The cash impact of this item is a working capital outflow at the time of
invoice payment.
2. On the 31 January 2022, the Group closed its defined benefit
pension scheme to future accrual. Costs associated with the closure included a
past service cost of £2.8m, cash payments to the affected employees to take
place in the first quarter of 2022, 2023 and 2024 totalling £8.7m, the
issuance of 185 shares in the first half of 2022 to each employee at a cost of
£1.0m, and a guaranteed value associated with those shares which is being
accounted for as a share based payment until the guarantee crystalises in
January 2024, of which £0.5m was recognised at June 2022. These charges were
all recognised in the 6 months to 30 June 2022, totaling £13.0m. A further
charge of £0.5m was recognised in the period up to 31 December 2022 bringing
the full year cost to £13.5m.
The charge associated with the guaranteed share value in the 6 months ended 30
June 2023 totals £0.4m. The Group will continue to present these costs in
adjusting items due to their volatile nature and connection with the closure
of the pension scheme which is considered a non-recurring event.
3. On 14 January 2022 it was announced that Doug Lafferty would be
joining the Group as Chief Financial Officer replacing Ken Gregor who stepped
down from the Board on 1 May 2022. On 4 May 2022 it was announced that Tobias
Moers would be stepping down as Chief Executive Officer and Chief Technical
Officer. Amedeo Felisa was appointed as Chief Executive Officer and Roberto
Fedeli was appointed as Chief Technical Officer on the same day. Amounts due
as a result of these changes totalled £3.0m at June 2022 with a further
£0.5m of expense incurred in the second half of 2022. Due to the quantum of
such costs incurred in the period, they have been separately presented.
4. During 2020 the Group issued second lien Senior Secured Notes which
included detachable warrants classified as a derivative option liability. The
movement in fair value of the warrants between 31 December 2022 and 30 June
2023 resulted in a loss of £37.9m being recognised in the Income Statement (6
months ended 30 June 2022: gain of £24.4m; 12 months ended 31 December 2022:
gain of £8.4m). This item has no cash impact.
5. Following the successful equity raise in September 2022, the Group
paid down $40.3m of First Lien Senior Secured Notes ("SSNs") and $143.8m of
Second Lien SSNs. The early settlement of these notes incurred a redemption
premium of £14.3m and transaction fees of £1.9m and resulted in the
acceleration of capitalised borrowing costs of £16.4m. The cash impact of the
fees and premium are incurred within the year ended 31 December 2022. The
acceleration of the borrowing costs is a non-cash item. In order to facilitate
the repayment of the SSNs the Group placed a forward currency contract to
purchase US dollars. Due to favourable movements in the exchange rates, a gain
of £4.1m was realised in the Income Statement at the transaction date.
6. In the period to 30 June 2023, a nil tax charge has been recognised
on Adjusting items (6 months ended 30 June 2022: £1.8m tax charge; 12 months
ended 31 December 2022: Nil tax charge). This is on the basis that the
adjusting items generate net deferred tax assets, specifically unused tax
losses, which have not been recognised to the extent that sufficient taxable
profits are not forecast in the foreseeable future to which the unused tax
losses would be utilised.
4. Finance income
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Bank deposit and other interest income 5.1 1.2 3.0
Foreign exchange gain on borrowings not designated as part of a hedging 61.7 - -
relationship
Finance income before adjusting items 66.8 1.2 3.0
Adjusting finance income (note 3) - 24.4 12.5
66.8 25.6 15.5
5. Finance expense
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Interest on bank loans, overdrafts and secured notes 70.6 80.4 166.0
Net interest expense on the net defined benefit liability 1.4 0.7 1.4
Foreign exchange loss on borrowings not designated as part of a hedging - 134.1 156.2
relationship
Interest on contract liabilities held 3.9 3.9 8.0
Interest on lease liabilities 2.0 2.0 4.5
Finance expense before adjusting items 77.9 221.1 336.1
Adjusting finance expense items:
Loss on financial instruments recognised at fair value through Income 37.9 - -
Statement (note 3)
Premium paid on the early redemption of Senior Secured Notes (note 3) - - 14.3
Write-off of capitalised borrowing fees upon early settlement of Senior - - 16.4
Secured Notes (note 3)
Professional fees incurred on refinancing expensed directly to the Income - - 1.9
Statement (note 3)
Total adjusting finance expense 37.9 - 32.6
Total finance expense 115.8 221.1 368.7
6. Income tax charge
The Group's total income tax credit for the period to 30 June 2023 is £0.2m
(period ended 30 June 2022: £4.4m tax charge) which represents an effective
tax rate of 0.1% (period ended 30 June 2022: -1.5%). The difference between
the total effective tax rate of 0.1% and the UK statutory rate of 23.5% for
the full year is predominantly due to deferred tax balances not being
recognised on asset movements generated in the period to 30 June 2023. £90.8m
of the net £137.2m Deferred Tax asset relates to unused tax losses. Deferred
tax assets on unused tax losses have been recognised to the extent that it is
probable that sufficient taxable profits will be generated to utilise these
losses based upon the current business plan.
Finance (No 2) Bill 2023, that includes Pillar Two legislation, was
substantively enacted on 20 June 2023 for IFRS purposes. The group has applied
the exemption from recognising and disclosing information about deferred tax
assets and liabilities related to Pillar Two income taxes as required by the
amendments to IAS 12 - International Tax Reform-Pillar Two Model Rules -
issued in May 2023.
7. Earnings per ordinary share
On 28 September 2022 the Group issued 559,005,660 ordinary shares by way of a
rights issue. Due to the shares being issued at substantially below market
price, a bonus issue is deemed to have taken place. A total of 211,604,112
shares issued were considered bonus shares. The weighted average shares used
to calculate earnings per share in the prior period comparative have been
adjusted accordingly as detailed in the table below.
In calculating the basic weighted average number of ordinary shares for the 6
months ended 30 June 2023, 1,017,505 ordinary shares issued in May 2023 to the
Employee Benefit Trust are excluded owing to the control the Group has over
the Trust.
Continuing and total operations 6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
Restated
Basic earnings per ordinary share
Loss available for equity holders (£m) (142.6) (290.0) (528.6)
Basic weighted average number of ordinary shares (million) 704.2 328.1 424.7
Basic earnings per ordinary share (pence) (20.3p) (88.4p) (124.5p)
Diluted earnings per ordinary share
Loss available for equity holders (£m) (142.6) (290.0) (528.6)
Diluted weighted average number of ordinary shares (million) 704.2 328.1 424.7
Diluted earnings per ordinary share (pence) (20.3p) (88.4p) (124.5p)
Continuing and total operations - 6 months ended 30 June 2022 As presented June 2022 Half Year Bonus element of rights issue (note 14) As presented above
Basic earnings per ordinary share
Loss available for equity holders (£m) (290.0) - (290.0)
Basic weighted average number of ordinary shares (million) 116.5 211.6 328.1
Basic loss per ordinary share (pence) (249.0p) 160.6p (88.4p)
Diluted earnings per ordinary share
Loss available for equity holders (£m) (290.0) - (290.0)
Basic weighted average number of ordinary shares (million) 116.5 211.6 328.1
Basic loss per ordinary share (pence) (249.0p) 160.6p (88.4p)
The impact of ordinary shares issued as part of the Long-term incentive plans
("LTIP") and the potential number of ordinary shares issued as part of the
2020 issue of share warrants have been excluded from the weighted average
number of diluted ordinary shares as including them is anti-dilutive in
arriving at diluted earnings per share. On 26 June 2023 the Group also
announced a future agreement with Lucid Group Inc. whereby equity will be
issued in partial exchange for access to technology. On the same day, the
Group also announced there would be no future issue of shares for access to
Mercedes-Benz AG technology (tranche 2).
8. Research and Development expenditure
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Total research and development expenditure 124.7 113.9 246.1
Capitalised research and development expenditure (121.0) (106.1) (232.0)
Research and development expenditure recognised as an expense during the 3.7 7.8 14.1
period
9. Net debt
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Cash and cash equivalents 400.1 156.2 583.3
Cash held not available for short-term use(1) - 2.0 0.3
Bank loans and overdrafts(2) (57.8) (62.3) (107.1)
Inventory repurchase arrangements(3) (39.9) (38.8) (38.2)
Senior Secured Notes (1,051.9) (1,221.5) (1,104.0)
Lease liabilities (96.7) (102.0) (99.8)
(846.2) (1,266.4) (765.5)
1. At 30 June 2023 £nil (30 June 2022: £2.0m; 31 December 2022:
£0.3m) held in certain local bank accounts had been frozen in relation to a
number of local arbitration proceedings. The cash held in these accounts did
not meet the definition of cash and cash equivalents and therefore was
classified as an other financial asset.
2. At 30 June 2023 £29.0m of the £90.6m revolving credit facility
was drawn down in cash (30 June 2022: £34.0m of £90.6m facility, 31 December
2022: £78.5m of £90.6m facility). £5.5m of the remaining facility has been
utilised through the issuance of letters of credit and guarantees (30 June
2022: £6.6m of the remaining facility was utilised; 31 December 2022: £5.2m
was utilised). The loan is presented net of amortised transaction fees of
£1.2m (30 June 2022: £1.7m; 31 December 2022: £1.4m).
At 30 June 2022, the Group held a bilateral revolving credit facility with
HSBC Bank plc ("HSBC"), whereby Chinese renminbi with an initial value of
£31.9m were deposited in a restricted account with HSBC in China in exchange
for a £30.0m sterling overdraft facility with HSBC in the United Kingdom. The
restricted cash has been revalued at 30 June 2023 to £30.1m (June 2022:
£33.6m; December 2022: £32.8m) and is shown in the cash and cash equivalents
value above. The cash in China cannot be withdrawn whilst the loan remains in
place.
3. At 30 June 2023 a repurchase liability of £39.9m including accrued
interest of £1.9m (December 2022: £38.2m including accrued interest of
£0.2m) was included within accruals and other payables and Net Debt relating
to parts for resale, service parts and production stock which were sold in
2022 and subsequently repurchased. Under the repurchase agreement, which has a
repayment date of July 2023, the Group will repay £40.0m gross of indirect
tax. As part of this arrangement legal title to the parts was surrendered,
however control remained with the Group. This repurchase arrangement will be
fully settled in 2023. As at 30 June 2022 a similar arrangement existed and
had a carrying value of £38.8m which included accrued interest of £1.1m.
This arrangement was fully settled during 2022.
10. Movement in net debt
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Movement in net debt
Net (decrease)/increase in cash and cash equivalents (183.2) (262.7) 164.4
Add back cash flows in respect of other components of net debt:
Proceeds from inventory repurchase arrangement - (37.7) (75.7)
Movement in cash held not available for short-term use (0.3) 0.2 (1.5)
Repayment of existing borrowings 49.5 52.3 172.7
Repayment of inventory repurchase arrangement - 20.0 60.0
Lease liability payments 4.0 6.4 10.0
Increase in net debt arising from cash flows (130.0) (221.5) 329.9
Non-cash movements:
Foreign exchange gain/(loss) on secured loan notes 61.7 (134.1) (156.2)
Interest added to debt (7.4) (9.7) (15.7)
Borrowing fee amortisation (4.2) (4.4) (25.4)
Lease liability interest charge (2.0) (2.0) (4.5)
Lease modifications (0.6) (2.8) (3.5)
New leases (1.4) (1.4) (2.2)
Exchange and other adjustments 3.2 1.1 3.7
(Increase)/decrease in net debt (80.7) (374.8) 126.1
Net debt at beginning of the period/year (765.5) (891.6) (891.6)
Net debt at the end of the period/year (846.2) (1,266.4) (765.5)
11. Financial Instruments
The following tables provide an analysis of financial instruments grouped into
Levels 1 to 3 based on the degree to which the value is observable. There were
no transfers between levels during the current and comparative periods.
30 June 2023 30 June 2022 31 December 2022
Nominal Value Book Value Fair Value Nominal Value Book Value Fair Value Nominal Value Book Value Fair Value
Included in assets £m £m £m £m £m £m £m £m £m
Level 2
Forward foreign exchange contracts - 1.9 1.9 - 2.1 2.1 - 2.3 2.3
Loan assets - - - 1.4 1.4 1.4 0.6 0.6 0.6
Level 3
Other derivative contracts - 6.4 6.4 - 3.7 3.7 - 5.6 5.6
- 8.3 8.3 1.4 7.2 7.2 0.6 8.5 8.5
30 June 2023 30 June 2022 31 December 2022
Nominal Value Book Value Fair Value Nominal Value Book Value Fair Value Nominal Value Book Value Fair Value
Included in liabilities £m £m £m £m £m £m £m £m £m
Level 1
$1,143.7m (June 2022: $1,186.0m; December 2022: $1,143.7m) 10.5% US Dollar 899.6 885.7 909.4 976.3 957.7 896.9 950.8 935.0 893.0
1(st) Lien Notes
$236.1m (June 2022: $366.1m; December 2022: $229.1m) 15.0% US Dollar 2(nd) 185.7 166.2 201.6 301.9 263.8 272.6 190.5 169.0 194.4
Lien Split Coupon Notes*
Level 2
Forward foreign exchange contracts - 0.8 0.8 - 5.9 5.9 - 0.7 0.7
Derivative option over own shares 48.1 60.6 60.6 48.1 6.6 6.6 48.1 22.6 22.6
1,133.4 1,113.3 1,172.4 1,326.3 1,234.0 1,182.0 1,189.4 1,127.3 1,110.7
*The fair value of the second lien notes as at 30 June 2023 includes $9.8m,
$10.5m, $10.8m, $6.8m and $7.0m of PIK notes issued in April 2021, November
2021, April 2022, November 2022, and April 2023 respectively. The comparative
figures as at 30 June 2022 and 31 December 2022 include the respective PIK
issuances which had taken place ahead of the Balance Sheet date.
Under IFRS 7, such assets and liabilities are classified by the way in which
their fair value is calculated. The interest bearing loans and borrowings are
considered to be level 1 liabilities. Forward foreign exchange contracts are
considered to be level 2 assets and liabilities. Derivative options are
considered to be level 2 liabilities.
IFRS 13 defines each level as follows:
· level 1 assets and liabilities have inputs observable
through quoted prices;
· level 2 assets and liabilities have inputs observable,
other than quoted prices, either directly (i.e. as prices) or indirectly (i.e.
derived from prices); or
· level 3 assets and liabilities as those with inputs not
based on observable market data.
The forward currency contracts are carried at fair value based on pricing
models and discounted cash flow techniques derived from assumptions provided
by third party banks.
Loan assets comprised amounts advanced to Velocitas Designated Activity
Company ("Velocitas"), the special purpose vehicle which provided the Group's
wholesale financing funding. The Group acted as a senior and subordinated
lender to Velocitas providing 5% of all funding into Velocitas in order to
comply with securitisation rules. Amounts advanced to Velocitas comprised a
long-term subordinated loan repayable at the end of the facility once all
financed dealer debt is settled and a short-term senior loan which fluctuates
on a monthly basis depending on the level of financed dealer debt. The
subordinated loan advanced in 2021 is a mixed-currency loan of £0.5m sterling
equivalent which was outstanding at 30 June 2022 and 31 December 2022. At 30
June 2022, the senior loan amounted to £0.9m (31 December 2022: £0.1m). Both
loans were fully repaid to the Group in the 6 months ended 30 June 2023
following the closure of the Velocitas program.
Other derivative contracts comprises warrant options and non-option
derivatives both of which entitle the Group to subscribe for equity in AMR GP
Holdings Limited, the immediate parent company of AMR GP Limited. The warrant
options have a carrying value of £5.2m as at 30 June 2023 (30 June 2022:
£3.4m; 31 December 2022: £4.7m). The fair value movement is recognised
within the Income Statement in administrative expenses. A corresponding
liability was recognised on inception of the arrangement which represents an
accrual for that element of future sponsorship payments. Following an
agreement to amend the sponsorship arrangement in 2023, in which the terms of
sponsorship up to and including 2030 were agreed, the option will continue
until 2030.
The fair value of the warrant equity option above has been established by
applying the proportion of equity represented by the derivative to an
assessment of the enterprise value of AMR GP Limited, which is then adjusted
to reflect marketability and control commensurate with the size of the
investment. The enterprise value has been estimated using a blend of measures
including an income-based approach and a market-based approach. Due to the
size of the potential investment, as a proportion of the equity of AMR GP
Limited, there are no plausible sensitivities which would give rise to a
material variation in the carrying value of the derivative.
There is a further embedded derivative in the agreement in respect of an
additional economic interest in the equity of AMR GP Limited which has been
assessed as having a carrying value of £nil at inception. This derivative
entitles the Group to subscribe for further share capital in AMR GP Limited in
the event that the sponsorship agreement is extended for a further five year
period to 2030, a condition which completed in the 6 months ended 30 June
2023. The fair value of this derivative is £1.2m (30 June 2022: £0.3m; 31
December 2022: £0.9m) and movement in this derivative is recognised within
the Income Statement in administrative expenses. The movement in the value of
this derivative has been estimated using the same method as the warrant equity
option disclosed above. There is no corresponding liability recorded as it is
a non-option embedded derivative.
The First and Second Lien Senior Secured Notes are all valued at amortised
cost retranslated at the year-end foreign exchange rate. The fair value of
these Notes at the current and comparative period ends are determined by
reference to the quoted price on The International Stock Exchange Authority in
St. Peter Port, Guernsey. The fair value and nominal value exclude the impact
of transaction costs.
The derivative option over own shares reflects the detachable warrants issued
alongside the second lien Senior Secured Notes enabling the warrant holders to
subscribe for a number of Ordinary Shares in the Company. The fair value is
calculated using a binomial model and updated at each period end reflecting
the latest market conditions. The inputs used in the valuation model include
the quoted share price, market volatility, exercise ratio, and risk-free rate.
The fair value movement in the option for the period ended 30 June 2023 was a
loss of £37.9m (30 June 2022: gain of £24.4m; 31 December 2022: £8.4m) and
is recognised within the Income Statement in interest income as an adjusting
item.
12. Provisions
30 June 30 June 31 December
2023 2022 2022
£m £m £m
Warranty provision 40.3 38.5 41.1
40.3 38.5 41.1
Current 18.3 17.9 18.6
Non-current 22.0 20.6 22.5
40.3 38.5 41.1
13. Pension Scheme
The net liability for defined benefit obligations of £61.2m at 31 December
2022 has decreased to a net liability of £54.8m at 30 June 2023. The movement
of £6.4m comprises an underlying charge to the Income Statement of £1.4m
offset by an actuarial gain of £0.3m in addition to contributions of £7.5m.
14. Share capital
30 June 2023 30 June 2022 31 December 2022
Number £m Number £m Number £m
Ordinary shares 728,074,580 72.8 116,459,513 11.6 698,757,075 69.9
Movement in Ordinary shares:
On 9 September 2022 the Company issued 23,291,902 ordinary shares by way of a
private placing. The shares were issued at 335p raising gross proceeds of
£78.1m, with £2.4m recognised as share capital and the remaining £75.7m
recognised as share premium.
On 28 September 2022 the Company issued 559,005,660 ordinary shares by way of
a rights issue. The shares were issued at 103p raising gross proceeds of
£575.8m, with £55.9m recognised as share capital and the remaining £519.9m
recognised as share premium. Share premium is reduced by £21.6m reflecting
transaction fees paid of which £2.9m are accrued as at 31 December 2022. Due
to the shares being issued at substantially below market price, a bonus issue
is deemed to have taken place. A total of 211,604,112 shares issued were
considered bonus shares. The weighted average shares used to calculate
comparative earnings per share (see note 7) was adjusted accordingly.
On 26 May 2023 the Company issued 28,300,000 ordinary shares by way of a
private placing. The shares were issued at 335p raising gross proceeds of
£94.8m with £2.8m recognised as share capital and the remaining £91.7m
recognised as share premium. Transaction fees of £0.3m were deducted from
share premium.
On 30 May 2023 the Company issued 1,017,505 ordinary shares under the
Company's Share Incentive Plan at nominal value. A transfer from retained
earnings of £0.1m took place, with £0.1m recognised in share capital.
15. Related party transactions
Transactions during 2023
During the 6 months ended 30 June 2023, a net marketing expense amounting to
£7.9m of sponsorship has been incurred in the normal course of business with
AMR GP Limited, an entity indirectly controlled by a member of the Group's Key
Management Personnel ("KMP"). AMR GP and its legal structure is separate to
that of the Group and the Group does not have control or significant influence
over AMR GP or its affiliates. Less than £0.1m remains due from AMR GP
Limited at 30 June 2023 relating to these transactions. In addition, the Group
incurred costs of £0.1m associated with engineering design on an upcoming
vehicle programme from Aston Martin Performance Technologies Limited ("AMPT").
A total of £0.1m is outstanding to AMPT at 30 June 2023. AMPT is an
associated entity of AMR GP. Under the terms of the sponsorship agreement the
Group is required to provide one fleet vehicle to the two AMR GP racing
drivers free of charge. This arrangement is expected to continue for the life
of the contract and is not expected to materially affect the financial
position and performance of the Group. One of the racing drivers is an
immediate family member of one of the Group's KMP.
A separate immediate family member of one of the Group's KMP incurred costs of
less than £0.1m relating to the export and transport of a vehicle. The
services were provided by a Group company. £nil is outstanding at 30 June
2023.
On 26 June 2023 the Group announced a strategic supply arrangement with Lucid
Group, Inc. for future access to powertrain components for future BEV models.
The arrangement is considered a Related Party Transaction owing to the
substantial ownership of Lucid Group, Inc. by the Public Investment Fund
("PIF"). PIF are also a substantial shareholder in the Group, and two members
of the Group's KMP & Non-Executive Directors are members of the PIF KMP.
During the 6 months ended 30 June 2023, a separate member of the Group's KMP
& Non-Executive Director placed a deposit of £0.5m with a Group company
for the future purchase of a vehicle.
During the 6 months ended 30 June 2023, the Group incurred costs of £2.0m for
design and engineering work from Pininfarina S.p.A. A member of the Group's
KMP and Non-Executive Director is also a member of Pininfarina S.p.A's KMP. As
of 19 May 2023 the individual ceased to a member of the Group's KMP and
therefore any future spend under the contract will not be disclosed as a
related party transaction.
During the 6 months ended 30 June 2023, the Group incurred a rental expense of
£0.6m from Michael Kors (USA), Inc., a Company which is owned by Capri
Holdings Limited. A member of the Group's KMP and Non-Executive Director is
also a member of Capri Holdings Limited's KMP.
During the 6 months ended 30 June 2023, an immediate family member of the
Group's KMP & Non-Executive Director provided event services at the
opening of Q New York totalling less than £0.1m of expense. £nil was
outstanding at the 30 June 2023.
Transactions during 2022
During the 6 months ended 30 June 2022, a net marketing expense amounting to
£9.2m of sponsorship has been incurred in the normal course of business with
AMR GP Limited, an entity indirectly controlled by a member of the Group's
KMP. AMR GP and its legal structure is separate to that of the Group and the
Group does not have control or significant influence over AMR GP or its
affiliates. In addition, AMR GP acquired a car from the Group at a total cost
of £0.7m. Less than £0.1m remains due from AMR GP Limited at 30 June 2022
relating to these transactions. Under the terms of the sponsorship agreement
the Group is required to provide one fleet vehicle to the two AMR GP racing
drivers free of charge. This arrangement is expected to continue for the life
of the contract and is not expected to materially affect the financial
position and performance of the Group. One of the racing drivers is an
immediate family member of one of the Group's KMP.
A separate immediate family member of one of the Group's KMP purchased a
vehicle from a Group company for £0.2m. £nil is outstanding at 30 June 2022.
During the 6 months ended 30 June 2022, a separate member of the Group's KMP
& Non-Executive Director placed a deposit of £1.5m with a Group company
for the future purchase of a vehicle.
During the 6 months ended 30 June 2022, a further separate member of the
Group's KMP & Non-Executive Director transacted with a Group company to
undertake service work on a car for a total cost of less than £0.1m. £nil
was outstanding at 30 June 2022.
Terms and conditions of transactions with related parties
Sales and purchases between related parties are made at normal market prices
unless otherwise stated. Outstanding balances with entities other than
subsidiaries are unsecured, interest free and cash settlement is expected
within 60 days of invoice. Terms and conditions for transactions with
subsidiaries are the same, with the exception that balances are placed on
intercompany accounts. The Group has not provided or benefited from any
guarantees for any related party receivables or payables.
16. Contingent liabilities
In the normal course of the Group's business, claims, disputes, and legal
proceedings involving customers, dealers, suppliers, employees or others are
pending or may be brought against Group entities arising out of current or
past operations. There is presently a dispute between the Group and the other
shareholders of one of its subsidiary entities, which is ongoing and from
which a future obligation may arise. The Group denies the claims made and is
working to resolve the matters raised.
17. 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 underlying performance of the Group,
enhance the comparability of information between reporting periods, and are
used internally by the directors to measure the Group's performance.
The key APMs that the Group focuses on are as follows:
i) Adjusted EBT is the loss before tax and adjusting items as shown in
the Consolidated Income Statement.
ii) Adjusted EBIT is operating (loss)/profit before adjusting items.
iii) Adjusted EBITDA removes depreciation, loss on sale of fixed assets
and amortisation from adjusted EBIT.
iv) Adjusted operating margin is adjusted EBIT divided by revenue.
v) Adjusted EBITDA margin is adjusted EBITDA (as defined above) divided
by revenue.
vi) Adjusted Earnings Per Share is loss after tax before adjusting items
as shown in the Consolidated Income Statement, divided by the weighted average
number of ordinary shares in issue during the reporting period.
vii) Net Debt is current and non-current borrowings in addition to inventory
repurchase arrangements and lease liabilities, less cash and cash equivalents
and cash held not available for short-term use as shown in the Consolidated
Statement of Financial Position.
viii) Adjusted leverage is represented by the ratio of Net Debt to the last
twelve months ('LTM') Adjusted EBITDA.
ix) Free cashflow is represented by cash (outflow)/inflow from operating
activities plus the cash used in investing activities (excluding interest
received) plus interest paid in the year less interest received.
Income Statement
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Loss before tax (142.2) (285.4) (495.0)
Adjusting operating expenses 6.5 17.2 23.9
Adjusting finance income - (24.4) (12.5)
Adjusting finance expense 37.9 - 32.6
Adjusted loss before tax (EBT) (97.8) (292.6) (451.0)
Adjusted finance income (66.8) (1.2) (3.0)
Adjusted finance expense 77.9 221.1 336.1
Adjusted operating loss (EBIT) (86.7) (72.7) (117.9)
Reported depreciation 45.7 38.2 88.8
Reported amortisation 121.6 93.1 219.3
Adjusted EBITDA 80.6 58.6 190.2
Earnings per share
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2022
2023 2022
Restated
£m £m £m
Adjusted earnings per ordinary share
Loss available for equity holders (£m) (142.6) (290.0) (528.6)
Adjusting items
Adjusting items before tax (£m) 44.4 (7.2) 44.0
Tax on adjusting items (£m) - 1.8 -
Adjusted loss (£m) (98.2) (295.4) (484.6)
Basic weighted average number of ordinary shares (million) 704.2 328.1* 424.7
Adjusted loss per ordinary share (pence) (13.9p) (90.0p) (114.1p)
Adjusted diluted earnings per ordinary share
Adjusted loss (£m) (98.2) (295.4) (484.6)
Diluted weighted average number of ordinary shares (million) 704.2 328.1* 424.7
Adjusted diluted loss per ordinary share (pence) (13.9p) (90.0p) (114.1p)
* The weighted average number of ordinary shares has been restated reflecting
the bonus element of the rights issue undertaken in September 2022 (note 7).
Net debt
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Opening cash and cash equivalents 583.3 418.9 418.9
Cash inflow/(outflow) from operating activities 17.5 (33.1) 127.1
Cash outflow from investing activities (175.0) (137.5) (284.7)
Cash (outflow)/inflow from financing activities (16.1) (104.2) 315.0
Effect of exchange rates on cash and cash equivalents (9.6) 12.1 7.0
Cash and cash equivalents at the end of the period 400.1 156.2 583.3
Cash held not available for short-term use - 2.0 0.3
Inventory repurchase arrangement (39.9) (38.8) (38.2)
Lease liabilities (96.7) (102.0) (99.8)
Borrowings (1,109.7) (1,283.8) (1,211.1)
Net Debt (846.2) (1,266.4) (765.5)
Adjusted LTM EBITDA 212.2 147.7 190.2
Adjusted leverage (LTM) 4.0x 8.6x 4.0x
Free Cashflow
30 June 30 June 31 December 2022
2023 2022
£m £m £m
Net cash (outflow)/inflow from operating activities 17.5 (33.1) 127.1
Net cash used in investing activities less interest received (180.2) (138.2) (286.9)
Interest paid less interest received (55.6) (62.5) (139.0)
Free cashflow (218.3) (233.8) (298.8)
18. Post balance sheet events
On 4 July 2023 3,686,017 Ordinary Shares in the Company were issued to satisfy
the redemption of 12,286,732 warrant options. £6.2m of cash was received for
the shares prior to 30 June 2023 and is included within the 30 June 2023 cash
balance presented in the Statement of Financial Position and included within
Financing Cashflows in the Statement of Cashflows.
On 12 July 2023 3,980,921 Ordinary Shares in the Company were issued to
satisfy the redemption of 13,269,737 warrant options.
After the completion of these transactions, the Company's total issued Share
Capital consists of 735,741,518 Ordinary Shares.
RESPONSIBILITY STATEMENT
The Interim consolidated financial information has been prepared in accordance
UK adopted International Accounting Standard 34, "Interim Financial
Reporting". We confirm that to the best of our knowledge that the Interim
Management Report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the financial statements; and a
description of the principal risks and uncertainties for the remaining six
months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the first six months of the
current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
By order of the Board
Amedeo
Felisa
Doug Lafferty
Chief Executive
Officer
Chief
Financial Officer
25 July 2023
25 July 2023
Independent review report to Aston Martin Lagonda Global Holdings plc
Conclusion
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2023 which comprises the Consolidated Statement of Comprehensive Income,
the Consolidated Statement of Changes in Equity, the Consolidated Statement of
Financial Position, the Consolidated Statement of Cash Flows and notes 1 to
18. We have read the other information contained in the half yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of
financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2023 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis of Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
Birmingham
25 July 2023
3 (#_ftnref1) Dealers' sales to customers (some Specials are direct to
customer)
(#_ftnref2) 4 Company sales to dealers (some Specials are direct to customer)
5 (#_ftnref3) ,6 For definition of alternative performance measures please
see Appendix
(#_ftnref4)
(#_ftnref5)
(#_ftnref6) 7, 8 Scope 1 CO(2) emissions
(#_ftnref7)
(#_ftnref8) 9, 10 Restated from Q1 2023 results
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