NOTES TO THE FINANCIAL STATEMENTS S S TR 1 BASIS OF ACCOUNTING Climate change considerations have been factored into the Directors’ TR Consolidated Statement of Cash Flows for the year ended 31 December 2023 A Aston Martin Lagonda Global Holdings plc (the “Company”) is a company impairment assessments of the carrying value of non-current assets (such A TE incorporated in England and Wales and domiciled in the UK. The Group as capitalised development cost intangible assets) through usage of a pre- TE 2023 2022 G G I I Notes £m £m C Financial Statements consolidate those of the Company and its tax discount rate which reflects the individual nature and specific risks C Operating activities Rsubsidiaries (together referred to as the “Group”). relating to the business and the market in which the Group operates. R E E P P Loss for the year (226.8) (527.7) OThe Group Financial Statements have been prepared and approved by the In addition the forecast cash flows used in both the impairment O R R Adjustments to reconcile loss for the year to net cash inflow from operating activities TDirectors in accordance with UK adopted international accounting standards. assessments of the carrying value of non-current assets and T Tax (credit)/charge on operations 9 (13.0) 32.7 The Group Financial Statements have been prepared under the historical the assessment of the recoverability of deferred tax assets reflect the current energy cost headwinds and future costs to achieve net-zero Net finance costs 128.6 353.2 Gcost convention except where the measurement of balances at fair value G O manufacturing facilities by 2030 as well as the forecast volumes for both O Depreciation of property, plant and equipment 4 90.3 77.8 VEis required as explained below. The Financial Statements are prepared in existing and future car lines given current order books and the VE Depreciation of right-of-use lease assets 4 9.3 11.0 Rmillions to one decimal place, and in sterling, which is the Company’s assessment of changing customer preferences. R Amortisation of intangible assets 4 283.4 219.3 NANfunctional currency. NAN Going concern Loss on sale/scrap of property, plant and equipment 2.6 – CClimate change C Difference between pension contributions paid and amounts recognised in Income Statement (15.0) (12.1) EIn preparing the Consolidated Financial Statements, management have The Group meets its day-to-day working capital requirements and E considered the impact of climate change, particularly in the context of the medium term funding requirements through a mixture of $1,143.7m First Decrease/(increase) in inventories 11.9 (78.4) Lien notes at 10.5% which mature in November 2025, $121.7m of Second (Increase)/decrease in trade and other receivables (82.3) 0.1 Fdisclosures included in the Strategic Report this year and the sustainability F I Lien split coupon notes at 15% per annum (8.89 % cash and 6.11% I Increase in trade and other payables 50.9 81.5 NANgoals, including the stated net-zero targets. Climate change is not Payment in Kind) which mature in November 2026, a Revolving Credit NAN C expected to have a significant impact on the Group’s going concern Facility (£99.6m) which matures August 2025, facilities to finance C Decrease in advances and customer deposits (66.0) (17.9) IALassessment to 30 June 2025 nor the viability of the Group over the next inventory, a bilateral RCF facility and a wholesale vehicle financing facility IAL Movement in provisions 3.4 0.7 Sfive years following consideration of the below points. (as described in note 18). As previously announced, the Group expects to S Other non-cash movements (0.3) 1.2 T T A refinance the outstanding debt during the first half of 2024, however, A Other non-cash movements – Movements in hedging position and foreign exchange derivatives (7.2) (3.2) T– The Group has modelled various scenarios to take account of the risks T E E M and opportunities identified with the impact of climate change to the going concern assessment is not dependent on this occurring. M Other non-cash movements – Increase in other derivative contracts (11.2) (2.3) E E N assess the financial impact on its business plan and viability. Under the RCF the Group is required to comply with a leverage covenant N Other non-cash movements – Movements in deferred tax relating to RDEC credit 9 (7.4) (3.5) T T Cash generated from operations 151.2 132.4 S– The Group has a Strategic Cooperation Agreement with Mercedes-tested quarterly. Leverage is calculated as the ratio of adjusted EBITDA S Benz AG. The agreement provides the Company with access to a wide to net debt, after certain accounting adjustments are made. Of these Decrease in cash held not available for short-term use 19 0.3 1.5 range of world-class technologies for the next generation of luxury adjustments, the most significant is to account for lease liabilities under F F Income taxes paid 9 (5.6) (6.8) Uvehicles which are planned to be launched through to 2027. “frozen GAAP”, i.e. under IAS17 rather than IFRS 16. Details of this U R R T – The Group is developing alternatives to the Internal Combustion adjustment are included in note 16. The Group has complied with its T Net cash inflow from operating activities 145.9 127.1 H H E Engine (‘ICE’) with a blended drivetrain approach between 2025 and covenant requirements for the year ended 31 December 2023 and E Cash flows from investing activities R R Interest received 7 13.5 2.2 INF2030, including Plug-in Hybrid Electric Vehicle (‘PHEV’) and Battery expects to do so for the Going Concern period. INF Electric Vehicle (‘BEV’), with a clear plan to have a line-up of electric Repayment of loan assets 18 0.5 – ORsports cars and SUVs. This is supported by significant planned capital The amounts outstanding on all the borrowings are shown in note 23. OR Payments to acquire property, plant and equipment (91.1) (58.6) Minvestment of around £2bn in advanced technologies over the 5 year The Directors have developed trading and cash flow forecasts for the M A A T T Cash outflow on technology and development expenditure (306.3) (228.3) Iperiod from 2024 to 2028, with investment shifting from ICE to period from the date of approval of these Financial Statements through I Net cash used in investing activities (383.4) (284.7) ONBEV technology. 30 June 2025 (the going concern review period). These forecasts show ON Cash flows from financing activities – The Group has formed a landmark new supply agreement with world-that the Group has sufficient financial resources to meet its obligations as Interest paid 28 (122.5) (141.2) leading electric vehicle technologies company, Lucid Group, Inc. which they fall due, including repayment of the current RCF were it needing to will help drive the Group’s high-performance electrification strategy be repaid on 30 June 2025 and to comply with covenants for the going Proceeds from equity share issue 27 310.9 653.9 and its long-term growth. The agreement will see Lucid, a world-concern review period. The forecasts reflect the Group’s ultra-luxury Proceeds from issue of warrants 27 15.0 – leader in the design and manufacture of advanced electric powertrains performance-oriented strategy, balancing supply and demand and the Proceeds from financial instrument utilised during refinancing transactions 7 – 4.1 and battery systems, supply industry-leading electric vehicle actions taken to improve cost efficiency and gross margin. The forecasts Principal element of lease payments 28 (7.9) (10.0) technologies. Access to Lucid’s current and future powertrain and include the costs of the Group's environmental, social and governance Repayment of existing borrowings 28 (129.7) (172.7) battery technology will support the creation of a bespoke, singular BEV (“ESG”) commitments and make assumptions in respect of future market Premium paid upon redemption of borrowings 28 (8.0) (14.3) platform, suitable for all product types from hypercar to SUV. conditions and, in particular, wholesale volumes, average selling price, Proceeds from inventory repurchase arrangement 21 38.0 75.7 – The Group is leading a six-partner collaborative research and the launch of new models, and future operating costs. The nature of the development project, Project ELEVATION, that was awarded £9.0m of Group's business is such that there can be variation in the timing of cash Repayment of inventory repurchase arrangement 21 (40.0) (60.0) government funding through the Advanced Propulsion Centre, further flows around the development and launch of new models. In addition, Proceeds from new borrowings 28 11.5 – supplementing the research and development of its innovative the availability of funds provided through the vehicle wholesale finance Transaction fees paid on issuance of shares (7.6) (18.6) modular BEV platform. facility changes as the availability of credit insurance and sales volumes Transaction fees paid on financing activities 28 – (1.9) – The Group’s first hybrid supercar, Valhalla, is on course to enter vary, in total and seasonally. The forecasts take into account these factors Net cash inflow from financing activities 59.7 315.0 production in 2024, with its first BEV targeted for launch in 2026. to the extent that the Directors consider them to represent their best Net (decrease)/increase in cash and cash equivalents (177.8) 157.4 Consistent with the above, management have further considered the estimate of the future based on the information that is available to them Cash and cash equivalents at the beginning of the year 583.3 418.9 impact of climate change on a number of key estimates within the Financial at the time of approval of these Financial Statements. Effect of exchange rates on cash and cash equivalents (13.1) 7.0 Statements and has not found climate change to have a material impact Cash and cash equivalents at the end of the yeaon the conclusions reached. r 392.4 583.3 ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 147