FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC CONTINUED S Parent Company Investment impairment – We confirmed the existence and the design effectiveness of controls Our year end audit procedures TR A (Investment: £1,051.6m, 2022: £497.3m) around management’s impairment assessment for investment in did not identify evidence of TE (Impairment reversal: £460.1m, 2022 subsidiaries. material misstatement regarding G I Impairment charge: £460.1m) – We considered the indicators of investment reversal, being the new the reversal of the impairment in C medium term targets announced by management at the capital investment in subsidiaries. R Refer to the Audit Committee Report (pages E markets day as well as the increase in the Groups market capitalisation P 98-101); Accounting policies (page 203); The prior year adjustment related O in the year. R and Note 3 of the Parent Company Financial – We examined management’s methodology and model for assessing to the 2022 balance sheet is T Statements (page 205) the VIU for investment in subsidiaries. This included assessing the cash materially stated. There is a risk that the parent company flow forecasts relating to the repayment of intercompany payables to G investment impairment/impairment reversal the parent company. O is not supported by the subsidiaries future – We confirmed the underlying cash flows are consistent with the VE forecast cashflows. Board approved business plan and appropriately reflect the effects of R material climate risks as disclosed on pages 61-62. NAN – We re-performed the calculations in the model to test the C mathematical integrity. E – We calculated the degree to which the key assumptions would need to fluctuate before there is a change in the impairment/impairment reversal. F I – We assessed the discount rate used by obtaining the underlying data NAN used in the calculation and benchmarking it against comparable C organisations and market data with the support of our valuation IAL specialists. S – We have further reviewed managements cash flow forecasts used T A to support the repayment of intercompany payables to the parent T E company (outside of the Group VIU). M – We considered sensitivity analysis about what changes in assumptions E N could individually lead to a different conclusion. T – We audited the disclosures in respect of impairment of investments and S confirm their consistency with the audited impairment models. F U R OUR APPLICATION OF MATERIALITY T H We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit and in forming our E R audit opinion. INF Materiality OR M The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic decisions of the A T users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures. I ON We determined materiality for the Group to be £7.5 million (2022: £4.75 million), which is 2.5% (2022: 2.5%) of Adjusted EBITDA. We believe that Adjusted EBITDA provides us with an appropriate basis for materiality as it is a key metric used by investors and management in assessing the performance of the Group. We determined materiality for the Parent Company to be £25.4 million (2022: £30.8 million), which is 1% (2022: 1.5%) of Equity. We have reduced the percentage applied to determine materiality in the current year as a result of the prior year adjustments identified. When auditing balances included within to the Group financial statements we reduced this to the Group materiality. Starting basis Adjustments Materiality – Loss before Tax – £239.8m – Adjusting items – £68.0m – EBITDA – £305.9m – Adjusted net finance – Materiality of £7.5m (2.5% of expense – £92.1m materiality basis) – Depreciation and Amortisation – £385.6m During the course of our audit, we reassessed initial materiality and updated this for actual results. ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 138