Aston Martin Lagonda Regulatory News (AML)

27 June 2023

Aston Martin Lagonda Global Holdings plc

Capital Markets Day 2023

Aston Martin Lagonda Global Holdings plc ("Aston Martin" or "the Company") will host a Capital Markets Day, today, 27 June 2023 for institutional investors and sellside analysts. 

Aston Martin's senior management team will showcase its exciting new and upcoming product range and will give presentations covering operational excellence, supplier strategy, talent management, sustainability, vehicle platforms, electrification, commercial strategy and branding. 

Aston Martin will also be confirming that it remains on track to deliver its 2024/25 financial targets, originally provided in 2020, which aimed to deliver c. £2 billion in revenue and c. £500 million of 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 its target to become free cash flow positive from 2024, the Company will also confirm that it is on track to further deleverage its balance sheet, targeting a net leverage ratio of c.1.5x in 2024/25.

Aston Martin will also provide 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, the Company expects to invest c. £2 billion over the next five years (2023-2027) as it invests in its long-term growth and the transition to electrification. This is comprised of c.£1.8 billion of capital expenditures and c. £200 million in technology access fees to the Company's strategic suppliers and partners over the next five years, including the payments related to its proposed strategic supply agreement with Lucid Group, Inc. ("Lucid").

As disclosed on 26 June 2023, the Company announced that it has agreed:

· to enter into a strategic supply agreement with Lucid to support its future battery electric vehicle ("BEV"), subject to shareholder approval and the satisfaction of certain regulatory and other conditions

· an amendment and restatement of the Strategic Co-operation Agreement ("SCA") with Mercedes-Benz AG, under which the original agreement to issue additional Aston Martin shares to Mercedes-Benz in exchange for access to further technology has been replaced with a restated commitment to the existing strategic collaboration allowing the parties to discuss future access to technology for cash.

As a consequence of the amendment and restatement of the SCA, no further consideration shares, or related cash top up payments, will be issued or paid to Mercedes-Benz.

This announcement should be read in conjunction with the separate releases issued on 26 June 2023. 

Lawrence Stroll, Executive Chairman on Aston Martin Lagonda, said:

"I am extremely proud of the major industrial turnaround we have completed in the last three years, which has completely rebuilt this iconic company. We are building an ultra-luxury brand, supercharged by our transformational partnership with the F1 team and with our portfolio of highly desirable and performance-driven cars. 

"We have updated our EV strategy, working with world-class suppliers to complement our extraordinary in-house engineering and design teams. 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. With the heavy lifting now behind us, I have never been as confident in our future." 

No new material information will be disclosed about current trading. 

Presentation materials from the event will be made available afterwards on the Investor Relations section of our website. 

Enquiries

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.