NOTES TO THE FINANCIAL STATEMENTS CONTINUED S S 34 ALTERNATIVE PERFORMANCE MEASURES TR34 ALTERNATIVE PERFORMANCE MEASURES CONTINUED TR In the reporting of financial information, the Directors have adopted various Alternative Performance Measures ("APMs"). APMs should be considered in AEarnings per share A addition to IFRS measurements. The Directors believe that these APMs assist in providing useful information on the underlying performance of the Group, TE 2023 2022 TE G £m £m G I I enhance the comparability of information between reporting periods, and are used internally by the Directors to measure the Group's performance. C C R Adjusted earnings per ordinary share R The key APMs that the Group focuses on are as follows: E E P Loss available for equity holders (£m) (228.1) (528.6) P O O i) Adjusted EBT is the profit/(loss) before tax and adjusting items as shown in the Consolidated Income Statement. RAdjusting items (note 5) R ii) Adjusted EBIT is operating profit/(loss) before adjusting items. TAdjusting items before tax (£m) 68.0 44.0 T iii) Adjusted EBITDA removes depreciation, profit/(loss) on sale of fixed assets and amortisation from adjusted EBIT. Tax on adjusting items (£m) – – iv) Adjusted operating margin is adjusted EBIT divided by revenue. G G O Adjusted loss (£m) (160.1) (484.6) O v) Adjusted EBITDA margin is Adjusted EBITDA (as defined above) divided by revenue. VEBasic weighted average number of ordinary shares (million) 748.2 424.7 VE vi) Adjusted earnings per share is profit/(loss) after tax before adjusting items as shown in the Consolidated Income Statement, divided by the weighted R R average number of ordinary shares in issue during the reporting period. NANAdjusted loss per ordinary share (pence) (21.4p) (114.1p) NAN vii) Net debt is current and non-current borrowings in addition to inventory repurchase arrangements and lease liabilities, less cash and cash equivalents Adjusted diluted earnings per ordinary share C C and cash held not available for short-term use as shown in the Consolidated Statement of Financial Position. EAdjusted loss (£m) (160.1) (484.6) E viii) Adjusted leverage is represented by the ratio of net debt to the last 12 months (LTM) Adjusted EBITDA. Diluted weighted average number of ordinary shares (million) 748.2 424.7 ix) Free cash flow is represented by cash inflow/(outflow) from operating activities less the cash used in investing activities (excluding interest received) Adjusted diluted loss per ordinary share (pence) (21.4p) (114.1p) F F plus interest paid in the year less interest received. I I NAN NAN Consolidated Income Statement CNet debt C 2023 2022 IAL 2023 2022 IAL £m £m £m £m S Opening cash and cash equivalents 583.3 418.9 S Loss before tax (239.8) (495.0) T T A A T Cash inflow from operating activities 145.9 127.1 T Adjusting operating expenses (note 5) 31.5 23.9 E E M Cash outflow from investing activities (383.4) (284.7) M Adjusting finance income (notes 5, 7) – (12.5) E E N N T Cash inflow from financing activities 59.7 315.0 T Adjusting finance expense (notes 5, 8) 36.5 32.6 SEffect of exchange rates on cash and cash equivalents (13.1) 7.0 S Adjusted loss before tax (EBT) (171.8) (451.0) r 392.4 583.3 Adjusted finance income (note 7) (74.3) (3.0) Cash and cash equivalents at 31 Decembe F F U Cash held not available for short-term use – 0.3 U Adjusted finance expense (note 8) 166.4 336.1 R R T T H Borrowings (1,069.7) (1,211.1) H Adjusted operating loss (EBIT) (79.7) (117.9) E E R Lease liabilities (97.3) (99.8) R Adjusted operating margin (4.9%) (8.5%) INFInventory repurchase arrangement (39.7) (38.2) INF Reported depreciation 102.2 88.8 Reported amortisation 283.4 219.3 ORNet debt (814.3) (765.5) OR M M A A Adjusted EBITDA 305.9 190.2 T T I Adjusted EBITDA 305.9 190.2 I Adjusted EBITDA margin 18.7% 13.8% ONAdjusted leverage 2.7x 4.0x ON Free cash flow 2023 2022 £m £m Net cash inflow from operating activities 145.9 127.1 Cash used in investing activities (excluding interest received) (396.9) (286.9) Interest paid less interest received (109.0) (139.0) w (360.0) (298.8) Free cash flo ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 199