S S TR TR A A TE TE G G I I C C R R E E P P O O R R T T G G O O VE VE R R NAN NAN Placing and reduction of debt Strategic arrangement with Lucid C C E Section 172 matters A, C, E, F Section 172 matters A, B, C, D, E, F E Stakeholders considered 1 3 4 Stakeholders considered 1 4 5 6 F           F I I NAN NAN PRINCIPAL DECISION PRINCIPAL DECISION C C IAL The Board approved a £216m placing to facilitate the early The Board approved a strategic supply agreement with Lucid to IAL S redemption of the Group’s existing second lien split coupon notes. create electric vehicles and approved the issue of 28 million ordinary S T shares to Lucid as part of the consideration. T A A T CONSIDERING OUR STAKEHOLDERS T E E M Investors: The Company consulted with a number of its major CONSIDERING OUR STAKEHOLDERS M E E N shareholders prior to the share offering and respected the principles Customers: The alignment of Aston Martin’s iconic brand with N T T S of pre-emption through the allocation process insofar as possible. Lucid’s advanced technologies will re-define the customer S While the placing was structured as a non-pre-emptive offer within experience for future Aston Martin BEV products. the Company’s existing authorities from shareholders to minimise F F U cost and time to completion, the Company was pleased to provide Investors: Irrevocable undertakings were obtained from the other U R R T T H retail investors with the opportunity to participate in line with the strategic shareholders to confirm their support. In the interests of H E E R Pre-Emption Group guidelines. After consideration of the various the Company’s bondholders, a bond fairness opinion was sought R INF options, the Company concluded that the separate retail offer was before entering into the transaction. INF OR in the best interests of shareholders, as well as wider stakeholders in OR M the Company. Suppliers and partners: The Board approved a restated commitment M A with Mercedes-Benz AG. A T T I I ON Customers: The additional funding allows investment in product People: The Company needs to attract new talent and provide ON innovation for the benefit of our customers. training for new skills in electrification. The Board considered the impact on the Company’s defined benefit pension scheme and People: Supporting our electrification journey includes attracting concluded that it would have a minimal impact in the short term new talent and providing training for new skills in electrification. and over time a positive impact on the scheme. OUTCOME 58 million new ordinary shares were issued raising gross proceeds OUTCOME of £216m which allowed the Company to further deleverage its Lucid now holds a 3.44% shareholding in the Company. The balance sheet, provided an accelerated pathway towards achieving Company’s shareholders voted overwhelmingly in favour of the its net leverage ratio targets and supported capital investments transaction, with the share issue reducing the future cash costs to the Company. The agreement provides for a long-term relationship with related to the Company’s electrification strategy. Lucid and access to Lucid’s industry-leading technologies. The tremendous backing from our The supply agreement with Lucid is a largest shareholders along with the game changer for the future EV-led strong appetite from institutional and growth of Aston Martin.” retail investors demonstrates the continued confidence in Aston Martin and our future direction.” ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 29