S S TR FINANCIAL RISKS COMPLIANCE RISKS OPERATIONAL RISKS TR A A TE Liquidity Impairment of capitalised Compliance with laws Talent acquisition TE G development costs and regulations and retention G I I C C R R The Group may not be able to The value of capitalised development Non-compliance with local laws We may fail to retain, engage and R I E S generate sufÏcient cash to fund its costs continues to grow as we invest in or regulations could damage our develop a productive workforce or E P K capital expenditure, service its debt and expand our product portfolio. corporate reputation and subject develop key talent. P O DE O R or sustain its operations. the Group to significant financial R T S penalties and / or trading sanctions / T C restrictions. R I P G T G O I O VE ON Risk movement Risk appetite Risk movement Risk appetite Risk movement Risk appetite Risk movement Risk appetite VE R LOW LOW ZERO MODERATE R NAN Link to strategy Link to strategy Link to strategy Link to strategy NAN C 1   2   2   2   3   4   1   3   4   C E E P – Significant leverage levels – Vehicle sales volumes fall below – Non-compliance with product – Failure to build the right O may inhibit our ability to raise lifecycle plans and targets regulations (including emissions, capabilities and behaviours in our F T additional capital as a result of the impact of noise, connected car security etc.) leadership team F I E I NAN N – Significant debt servicing macroeconomic factors such as could inhibit the Group’s ability to – Failure to engage or equip our NAN T requirements reduce cash the current cost of living crisis sell in certain markets teams to deliver our strategy or I C A available to support other and continuing global economic – Non-compliance with corporate address key capability gaps C IAL L I operational needs uncertainty and inflationary conduct laws and regulations – Inability to fill key open positions IAL S M – Liquidity restrictions could impact pressure or rising interest costs (including data protection may inhibit our ability to electrify S P T A planned R&D investment – Vehicle pricing and contribution laws, supply chain laws, human our product portfolio in line with T A C – Delays in payment to suppliers reduce to levels which no longer rights laws etc.) could result in published timeframes A T T O to manage short-term cash support the carrying value of the financial penalties and / or brand / T E E M N B requirements could result in attributable capitalised costs reputational damage M E supply chain disruption – Uncertainty of ‘Carry Over – Carry – Failure to keep pace with increasing E N U Across’ utilisation on future vehicle stakeholder expectations to go N T T S S models and derivatives beyond evolving ESG reporting S I N – Rapid pace of technological change requirements could result in brand E results in technology being made / reputational damage which could S F S obsolete earlier than anticipated ultimately affect our sales pipeline F U and planned growth U R R T T H H E E R R INF INF OR OR M M A A T T I I ON R – £216m of proceeds received from – Annual review and approval – Procedures are in place to – Remuneration Committee ON I S Equity capital raise in August 2023 of Capitalisation policy and obtain Vehicle Type Approval oversight of senior leadership K – £654m equity capital raise and procedures and homologation for all new remuneration to ensure it is aligned M $200m debt tender in prior year – Impairment reviews performed production vehicles from the to the strategy and appropriate for ITI – Renewed wholesale financing where triggering events have been appropriate vehicle certification staff retention G facilities implemented to facilitate identified agencies to ensure that vehicles – Regular review of talent and A faster cash collection – Regular vehicle line reviews meet the required performance resource risks leveraging TI – New products targeting minimum undertaken to monitor sales volume standards for the markets they are succession plans and employee O contribution levels of 40% to drive and contribution performance sold in engagement survey results N profit and cash generation for all car lines with any concerns – Processes in place to track and – Benchmarking of bonus and – Regular management review of communicated to Finance monitor compliance with emissions remuneration packages to drive cash and working capital balances for consideration of potential reduction targets and other employee performance and – Regular expenditure reviews held impairment regulatory standards behaviours and remain attractive with the CEO and CFO and regular – New product set entry level – Corporate policies define our to external candidates in a buoyant liquidity-focused Board reviews investment targets of 40% minimum standards of behaviour in relation UK job market – Monthly Treasury Committee contribution levels to key compliance areas (including – Embedding Company values; – Ongoing transformation activity anti-bribery and corruption, Unity, Openness, Trust, Ownership to deliver targeted cost savings data protection, responsible and Courage, based around the and efÏciencies procurement, health and safety, concept that “no-one builds an – Cash pooling and repatriation of anti-slavery and human trafÏcking, Aston Martin on their own” cash to ensure funds are available environmental). These policies have – Talent review exercise undertaken for Group priorities been significantly updated and for senior management and above reissued in 2023 and a new Code of population Conduct developed. – Company-wide performance – Refreshed campaign to promote bonus scheme to drive Speak-Up, our confidential performance, embedding key reporting system, overseen by finance and quality measures and the Audit and Risk Committee, targets LEGEND which enables the reporting of – Successful recruitment of key any suspected breach of policy or senior leadership positions in 2023 1 Brand  2 Product innovation  3 Sustainability  4 Team misconduct ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 67