NOTES TO THE FINANCIAL STATEMENTS CONTINUED S S 30 CAPITAL COMMITMENTS TR31 RELATED PARTY TRANSACTIONS CONTINUED TR On 27 October 2020, the Group announced that it had entered into an enhanced strategic cooperation arrangement (the “Strategic Cooperation ATransactions with Directors and related undertakings continued A Agreement”) with one of its existing shareholders, MBAG. Under the Strategic Cooperation Agreement, the Group has agreed, over the period of time TETransactions during 2023 continued TE G G I I between December 2020 and July 2024 and in several tranches, to issue 458,942,744 ordinary shares of £0.009039687 each (22,947,138 ordinary shares CDuring the year ended 31 December 2023, an immediate family member of the Group’s KMP & Non-executive Director provided event services at the C of £0.10 each following the share consolidation in December 2020) to MBAG in exchange for access to certain technology and intellectual property to be Ropening of Q New York totalling less than £0.1m of expense. £nil was outstanding at 31 December 2023. No detailed market price assessment was R E E provided to the Group by MBAG in several stages. Pperformed when engaging this service. P O O R R The first tranche of 224,657,287 ordinary shares of £0.009039687 each (11,232,864 ordinary shares of £0.10 each following the share consolidation) was TTransactions during 2022 T issued to MBAG on 7 December 2020. A total of 11,714,274 ordinary shares remained unissued at 31 December 2022. During the year ended 31 December During the year ended 31 December 2022, a net marketing expense amounting to £20.2m of sponsorship has been incurred in the normal course of 2023 the Group agreed with MBAG that no further shares would be issued and no additional technology as part of the original agreement would be taken. business with AMR GP Limited (“AMR GP”), an entity indirectly controlled by a member of the Group’s Key Management Personnel (“KMP”). AMR GP G G This announcement was concurrent with entering into an agreement with Lucid Group, Inc. for access to certain aspects of BEV technology (see note 12). Oand 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, O VE the Group incurred costs of £2.0m associated with engineering design on an upcoming vehicle programme from Aston Martin Performance Technologies VE Property, plant and equipment expenditure contracts to the value of £37.3m (2022: £10.8m) have been committed but not provided for as at 31 December 2023. RLimited (“AMPT”) of which £2.0m is outstanding to AMPT at 31 December 2022. AMPT is an associated entity of AMR GP. In addition, AMR GP acquired a R Contracts to the value of £61.3m (2022: £51.4m) have been committed for the acquisition of intangible assets but not provided for as at 31 December 2023. NANvehicle from the Group at a total cost of £0.7m. Less than £0.1m remains due from AMR GP at 31 December 2022 relating to these transactions. Under the NAN Certain contracts contain financial commitments, in particular purchase commitments and guarantees, which are of a magnitude typical for the industry. C 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 C 31 RELATED PARTY TRANSACTIONS Eis 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 E Transactions between Group undertakings, which are related parties, have been eliminated on consolidation and accordingly are not disclosed. 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 two F vehicles from a Group company for £0.4m. £nil is outstanding at 31 December 2022. During the year ended 31 December 2022, Classic Automobiles Inc. F I I Transactions with Directors and related undertakings NANplaced a deposit of £0.5m with a Group company for the future purchase of a Group vehicle. Classic Automobiles Inc. is controlled by a member of the NAN Transactions during 2023 Group’s KMP. C C During the year ended 31 December 2023, a net marketing expense amounting to £19.4m of sponsorship has been incurred in the normal course of IALDuring the year ended 31 December 2022, a separate member of the Group’s KMP and Non-executive Director placed a deposit of £1.5m with a Group IAL business with AMR GP Limited (“AMR GP”), an entity indirectly controlled by a member of the Group’s Key Management Personnel (“KMP”). AMR GP S S 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. £0.7m company for the future purchase of a vehicle. T T A A remains due from AMR GP at 31 December 2023 relating to these transactions. T T E During the year ended 31 December 2022, a further separate member of the Group’s KMP and Non-executive Director transacted with a Group company E M to undertake service work on a vehicle for a total cost of less than £0.1m. £nil was outstanding at 31 December 2022. M During the year ended 31 December 2023 the Group extended its sponsorship arrangements with AMR GP for a further period of five years commencing E E N N in 2026. Amounts under this arrangement are due within each financial year from 2026. The Group also exercised its primary warrant option and subscribed T T for reward shares under the terms of the original sponsorship arrangement giving the Group a minority stake in AMR GP Holdings Limited, the immediate SDuring the year ended 31 December 2022, the Group incurred costs of £1.3m for design and engineering work from Pininfarina S.p.A. A member of the S parent company of AMR GP limited. The Group paid nominal value for the shares of which £nil was outstanding at year end. Further detail is included in Group’s KMP and Non-executive Director is also a member of Pininfarina S.p.A’s KMP. notes 15 and 20. 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 FDuring the year ended 31 December 2022, the Group incurred a rental expense of £0.7m from Michael Kors (USA), Inc., a Company which is owned by F U U 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 RCapri Holdings Limited. A member of the Group’s KMP and Non-executive Director is also a member of Michael Kors (USA), Inc.’s KMP. R T T 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 H H E Terms and conditions of transactions with related parties E 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 was R R outstanding at 31 December 2023. INFSales and purchases between related parties were made at normal market prices unless otherwise stated. Outstanding balances with entities other INF than subsidiaries are unsecured and interest free and cash settlement is expected within 60 days of invoice. Terms and conditions for transactions with In addition, the Group incurred costs of £8.5m associated with engineering design on two upcoming vehicle programmes from Aston Martin Performance ORsubsidiaries are the same, with the exception that balances are placed on inter-company accounts. The Group has not provided or benefited from any OR M M Technologies Limited (“AMPT”) of which £2.8m is outstanding to AMPT at 31 December 2023. AMPT is an associated entity of AMR GP. Aguarantees for any related party receivables or payables. A T T I I During the year ended 31 December 2023, Classic Automobiles Inc. purchased a vehicle for £1.8m of which £nil was outstanding at 31 December 2023. ON32 CONTINGENT LIABILITIES ON Classic Automobiles Inc. is controlled by a member of the Group’s KMP. In the normal course of the Group’s business, claims, disputes, and legal proceedings involving customers, dealers, suppliers, employees or others are During the year ended 31 December 2023, a separate member of the Group’s KMP and Non-executive Director purchased a vehicle for £1.8m, having paid 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 a deposit to the Group in the first half of the year. £nil was outstanding at 31 December 2023. 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 matter. On 26 June 2023, the Group announced a strategic supply arrangement with Lucid Group, Inc. (“Lucid”) 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 by the Public Investment Fund (“PIF”). PIF are also a substantial shareholder of the Group and two members of the Group’s KMP & Non-executive Directors are members of PIF’s KMP. The Group recognised an asset of £188.5m in relation to the supply agreement. The agreement is part-settled in equity, which was issued to Lucid in November 2023. An outstanding cash liability of £71.7m relating to the supply arrangement remains at 31 December 2023, all of which is due in more than one year. The supply arrangements, commit to an effective future minimum spend with Lucid on powertrain components of £177.0m. During the year ended 31 December 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 be a member of the Group’s KMP and therefore any future spend under the contract will not be disclosed as a related party transaction. £nil is outstanding as at 31 December 2023. During the year ended 31 December 2023, the Group incurred a rental expense of £1.2m 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 Michael Kors (USA), Inc.’s KMP. During the year ended 31 December 2023, the Group incurred consultancy costs of £0.2m from a member of the Group’s KMP and Non-executive Director in relation to the oversight of two significant legal claims which the Group has been party to. £0.1m was outstanding as at 31 December 2023. Owing to the unique experience of the individual involved and the specifics of the legal claims, no detailed market price assessment was performed when engaging this service. ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 195