STRATEGIC REPORT CHIEF FINANCIAL OFFICER’S STATEMENT SS TRTR AA Significant progress towards TETE GG II CC R R near- and medium-term EE PP OO RR TT financial targets GG OO VEVE RR NANNAN CC EE FF II NANNAN CC IALIAL CHIEF FINANCIAL hroughout 2023 Aston Martin continued to execute its financial goals, OFFICER S S with significant progress towards our near- and medium-term financial G TT targets. During a year in which we commenced the transition to our AA U Y TT next generation of sports cars, our full year financial results are largely EE MM T in line with expectations, driven by robust volumes, records ASPs, EE O NN gross margin improvement and an enriched product portfolio. TT SS D As we approached the final quarter of the year on track to deliver FF FFER Tagainst full year guidance, delays in the initial ramp up phase of the UU RR new DB12 marginally impacted on volume performance. Despite this, TT A HH we delivered a strong Q4 performance with a record gross margin, EE RR L and adjusted EBITDA, supported by DB12 and the ongoing Specials INF INF programmes. 2023 free cash outflow of £360m reflects anticipated higher year-on-year capital expenditure primarily related to the OROR development of our next generation of sports cars and electrification MM AA programme, as well as the timing of DB12 and Valour deliveries at TT II the end of the year, with related receivables unwinding in January 2024. ONON As we transition to the full range of our next generation of sports cars and develop our electrification programme, investment in the product pipeline and innovation continues, ensuring Aston Martin delivers the ultra-luxury high-performance products in the future that our customers expect. In August we completed a £216m share placing to accelerate net leverage reduction and support longer term growth, and in Through continuous engagement with our stakeholders during the consideration of a wide range of factors, we redeemed 50% of the outstanding second lien notes in November 2023. At the end of 2023 our net leverage ratio reduced to 2.7x from 4.0x in 2022. Further year I was pleased to see the to this, we expect to undertake the refinancing exercise of our development of both new and outstanding debt during the first half of 2024. existing strategic relationships as we progress to deliver long-term value to all of our shareholders.” ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 36