NOTES TO THE FINANCIAL STATEMENTS CONTINUED S S 26 PENSION OBLIGATIONS CONTINUED TR27 SHARE CAPITAL AND OTHER RESERVES TR A Capital A TE Nominal Share Share Merger redemption TE Sensitivity analysis of the principal assumptions used to measure scheme liabilities G Number of value capital premium reserve reserve G I Allotted, called up and fully paid shares £ £m £m £m £m I At 31 December 2023 the present value of the benefit obligation was £215.9m (2022: £189.0m) and its sensitivity to changes in key assumptions were: C C R Opening balance at 1 January 2022 116,459,513 11.6 1,123.4 143.9 9.3 R Present value Present value E E of benefit of benefit P 1 P Private placing 23,291,902 0.1 2.4 75.7 – – obligations at obligations at O O R 2 R T Rights issue T 31 December 31 December 559,005,660 0.1 55.9 498.3 – – Change in 2023 2022 assumption £m £m Discount rate Decrease by 1.00% 260.3 228.7 Balance as at 31 December 2022 and 1 January 2023 698,757,075 69.9 1,697.4 143.9 9.3 G G O Private placing3 O Rate of inflation* Increase by 0.25% 222.5 196.7 28,300,000 0.1 2.8 91.7 – – VE 4 VE Life expectancy increased by approximately 1 year Increase by one year 223.2 194.7 Issuance of shares to SIP 1,017,505 0.1 0.1 – – – R R NAN 5 NAN * This sensitivity allows for the impact on all inflation-related assumptions (salary increases, deferred revaluation and pension increases). Exercise of warrant options 8,990,975 0.1 0.9 14.1 – – Placing6 58,245,957 0.1 5.9 206.9 – – C C Funding levels are monitored on a regular basis by the Trustee and the Group to ensure the security of members’ benefits. The next triennial valuation, as at E7 E Consideration shares 28,352,273 0.1 2.8 84.4 – – 6 April 2023, is due to be completed by July 2024 in line with the scheme-specific funding requirements of the Pensions Act 2004. As part of that valuation the Trustee and the Group will review the adequacy of the contributions being paid into the scheme. F Closing balance at 31 December 2023 823,663,785 82.4 2,094.5 143.9 9.3 F I I NAN 1. 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 NAN Sensitivity analysis of the principal assumptions used to measure scheme liabilities continued C share capital and the remaining £75.7m recognised as share premium. C 2023 2022 IAL 2. 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 IAL £m £m 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 Expected future benefit payments S31 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 211.6m shares issued were considered S T bonus shares. The weighted average shares used to calculate earnings per share (see note 11) has been adjusted accordingly. T Year 1 (2023/2024) 10.6 11.2 A3. 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 A T capital and the remaining £92.0m recognised as share premium. Transaction fees of £0.3m were deducted from share premium. T E E Year 2 (2024/2025) 10.9 11.6 M4. 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 M E recognised in share capital. E Year 3 (2025/2026) 11.2 11.9 N5. On 4 July 2023, 3,686,017 ordinary shares were issued to satisfy the redemption of certain warrant options. Further issuances of 3,980,921 ordinary shares on 12 July 2023 and 1,324,037 N T T Year 4 (2026/2027) 11.6 12.3 S ordinary shares on 31 July 2023 took place. These transactions resulted in the recognition of £0.9m of share capital with the balance of £14.1m being recognised in share premium. S 6. On 3 August 2023, the Company issued a total of 58,245,957 ordinary shares comprising 56,750,000 placing shares, 1,078,168 retail offer shares and 417,789 Director subscription shares. The Year 5 (2027/2028) 11.9 12.6 shares were issued at 371p raising gross proceeds of £216.1m, with £5.9m recognised as share capital, the remaining £210.2m as share premium, offset by £3.3m of fees. 7. On 6 November 2023, the Company issued consideration shares to Lucid Group, Inc. in part payment for access to technology. The fair value of technology was evaluated (see note 12) which Years 6 to 10 (2029 to 2033) 63.7 67.9 Fdetermined the issue price of the shares. £2.8m was recognised in share capital with an initial £85.8m in share premium. £1.4m of transaction fees were then deducted from share premium. F U U R R History of scheme experience T T H 28 ADDITIONAL CASH FLOW INFORMATION H 2023 2022 E E R Reconciliation of movements of select liabilities to cash flows arising from financing activities R Present value of the scheme liabilities (£m) (215.9) (188.9) INFThe tables below reconcile movements of liabilities classified within net debt (note 24) to cash flows arising from financing activities for the years ended INF Fair value of the scheme assets (£m) 212.8 187.0 Deficit in the scheme before adjusting to reflect minimum funding requirements (£m) (3.1) (1.9) OR31 December 2023 and 2022. OR M Other borrowings $335m 15% M Experience gains/(losses) on scheme assets excluding interest income (£m) 5.6 (188.5) A and inventory Lease $1,184.0m 10.5% Second Lien A T T I arrangements Liabilities First Lien Notes Notes Total I Percentage of scheme assets 2.6% (100.8%) ONLiabilities £m £m £m £m £m ON Return on scheme liabilities (£m) (20.4) (14.7) At 1 January 2023 145.3 99.8 935.0 169.0 1,349.1 Percentage of the present value of the scheme liabilities 9.4% 7.8% Changes from financing cash flows Total amount recognised in Other Comprehensive Income (£m) (0.1) 6.8 Interest paid (3.6) (4.1) (97.9) (16.9) (122.5) Percentage of the present value of the scheme liabilities 0.0% (3.6%) Principal lease payment – (7.9) – – (7.9) Proceeds from new borrowings 11.5 – – – 11.5 Repayment of existing borrowings (30.0) – – (99.7) (129.7) Premium paid on the early redemption of Senior Secured Notes – – – (8.0) (8.0) Inventory repurchase repayment (40.0) – – – (40.0) Inventory repurchase drawdown 38.0 – – – 38.0 Total changes from financing cash flows (24.1) (12.0) (97.9) (124.6) (258.6) Effect of changes in exchange rates – (1.0) (54.0) (6.8) (61.8) New leases under IFRS 16 – 5.8 – – 5.8 Modifications to existing leases – 0.6 – – 0.6 Interest expense 11.0 4.1 106.4 51.4 172.9 Movement in accrued interest (0.6) – 0.5 1.3 1.2 Financing expense in the Income Statement classified as operating cash flow (2.5) – – – (2.5) Balance at 31 December 2023 129.1 97.3 890.0 90.3 1,206.7 ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 191