FFIINANNANCCIALIAL S STTAATTEEMMEENNTTSS NOTES TO THE FINANCIAL STATEMENTS CONTINUED S 34 ALTERNATIVE PERFORMANCE MEASURES TR In the reporting of financial information, the Directors have adopted various Alternative Performance Measures ("APMs"). APMs should be considered in A addition to IFRS measurements. The Directors believe that these APMs assist in providing useful information on the underlying performance of the Group, TE G I enhance the comparability of information between reporting periods, and are used internally by the Directors to measure the Group's performance. C R The key APMs that the Group focuses on are as follows: E P O i) Adjusted EBT is the profit/(loss) before tax and adjusting items as shown in the Consolidated Income Statement. R ii) Adjusted EBIT is operating profit/(loss) before adjusting items. T iii) Adjusted EBITDA removes depreciation, profit/(loss) on sale of fixed assets and amortisation from adjusted EBIT. iv) Adjusted operating margin is adjusted EBIT divided by revenue. G O v) Adjusted EBITDA margin is Adjusted EBITDA (as defined above) divided by revenue. VE vi) Adjusted earnings per share is profit/(loss) after tax before adjusting items as shown in the Consolidated Income Statement, divided by the weighted R average number of ordinary shares in issue during the reporting period. NAN vii) Net debt is current and non-current borrowings in addition to inventory repurchase arrangements and lease liabilities, less cash and cash equivalents C and cash held not available for short-term use as shown in the Consolidated Statement of Financial Position. E viii) Adjusted leverage is represented by the ratio of net debt to the last 12 months (LTM) Adjusted EBITDA. ix) Free cash flow is represented by cash inflow/(outflow) from operating activities less the cash used in investing activities (excluding interest received) F plus interest paid in the year less interest received. I NAN Consolidated Income Statement C 2023 2022 IAL £m £m S Loss before tax (239.8) (495.0) T A T Adjusting operating expenses (note 5) 31.5 23.9 E M Adjusting finance income (notes 5, 7) – (12.5) E N T Adjusting finance expense (notes 5, 8) 36.5 32.6 S Adjusted loss before tax (EBT) (171.8) (451.0) Adjusted finance income (note 7) (74.3) (3.0) F U Adjusted finance expense (note 8) 166.4 336.1 R T H Adjusted operating loss (EBIT) (79.7) (117.9) E R Adjusted operating margin (4.9%) (8.5%) INF Reported depreciation 102.2 88.8 Reported amortisation 283.4 219.3 OR M Adjusted EBITDA 305.9 190.2 A T I Adjusted EBITDA margin 18.7% 13.8% ON ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 198