Creating a world-class luxury automaker: Q1 progress | ||
1 | Successfully achieved rebalance of GT/Sport supply to demand: completed earlier than expected | |
2 | Vantage F1® - first of >10 new vehicles to be launched by 2023: well received by customers with strong initial demand | |
3 | Initial manufacturing efficiencies improving plant performance: Consolidated production lines from two to one at Gaydon | |
4 | All sports manufacturing consolidated to one location: Aston Martin Valkyrie and V12 Speedster assembly relocated to Gaydon | |
5 | Strengthened team and dealer network: Experienced hires in commercial & technical functions; key new German dealer appointed | |
6 | Aston Martin Cognizant Formula OneTM Team driving brand awareness: Digital reach of c. 135m for AMR21 launch | |
Project Horizon: delivering operational excellence, agility and efficiency |
-
AM
Aston Martin
-
AM
- Organisational structure streamlined
- First steps in building performance driven culture underway
- Dynamic and innovative mindset perceptible throughout organisation
Portfolio Strategy & Cycle
Planning
- Sustainable product plan defined and aligned with market demand/business plan
- Expansion of portfolio based on DBX and GT/Sports platform
- Iconic Aston Martin Valkyrie as the milestone to enter mid-engine market
Go-to-Market
- F1TM engagement increases brand desirability - with over 85 million viewers a race
- Customer experience strengthened with launch of new configurator and focus on customer journey
- Network extension in Europe
▪ Restructuring savings on track | ▪ Electrified powertrain and | ▪ Rebalancing supply to demand |
upgraded infotainment in 2023/24 | ||
successful |
Product
Product Development | Operational |
Efficiency | Excellence |
- Product focus on improved margin per car and technical product competitiveness
- F1TM engagement emphasises performance and drives innovation
- Restructuring of material costs; initial savings already secured
- Experienced external hires to lead powertrain and vehicle development
- Align to industry standard working practices to drive accountability
- Investment in leading edge PLM/ERP IT architecture
- Focused on significantly increasing productivity, through cross functional collaboration and digitalisation
- New Chief Operating Officer is driving transformation
- Optimised operational footprint and efficiencies delivers significant annual savings (>30%)
- New production system driven by technology, digitalisation and efficient supply chain
- Strategic alignment to operational footprint
Outlook unchanged - Q1 trading as expected
2021 - uncertainty remains due to COVID-19
Wholesales
Adj. EBITDA margin
-
6,000
Mid-teens %
Adjusted EBITDA expected to be heavily weighted to H2,
particularly Q4, given timing of Specials
D&A | c. £240m - £250m | |
Interest expense | c.£145m1 | |
Capex and R&D | c. £250m - £275m | |
Transforming Aston Martin: capturing the huge opportunity for the business
By FY 2024/2025:
Volumes: | Revenue: | Adj. EBITDA: | |
c. 10k units | c. £2bn | c. £500m | |
Front-engine: | • | Delivery of improved | |
• c. 4k target units | profitability through | ||
• Volumes target in-line with LT historical demand | enhanced product offer | ||
• Substantial refresh of current range in next few years | and disciplined | ||
production to order | |||
SUV: | |||
• c. 5-6k target units | • Margin more aligned to | ||
• Highest growth luxury segment offering a very attractive | luxury automotive | ||
opportunity based on market dynamics | segment | ||
• First new variant to be revealed in 2021 with further | |||
expansion of range to follow | • | Optimising structure | |
aligned with updated | |||
Mid-engine: | product and business | ||
• Low volume and more profitable mid-engine offering to | plan | ||
further diversify portfolio; transforming F1TM technology | |||
from the Aston Martin team into performance road cars | • | Operational focus on | |
cost and investment | |||
control |
Capex
£250m-£300m
p.a.
- SUV platform already developed
- Both Gaydon and St Athan are fully invested and ready to support ramp-up
- Strategic partnership offers access to world class technology
- Aston Martin Valkyrie hypercar, the ambassador for the mid- engine programme, starts deliveries in H2 2021
Notes: (1) c. £145m P&L charge and c. £120m cash charge reflects additional $98.5m bond issue in February 2021 and current exchange rates (originally c. £155m (P&L)/ c..£120m (cash))
Renewed products underpinned by Mercedes-Benz AG technology; > 10 new vehicles to be launched by 2023
1 Technology improves customer proposition
- New technology fully integrated from 2023
- Electrified powertrain or BEV for all 2024 product launches
- BEV and electrified powertrain >90% of the portfolio by 2030
Front - engine
- Cycle Plan includes full refresh
- Historic run-rate c. 4,000 units
- Editions and design-to-cost drive margins
SUV
- First SUV: DBX launched in 2020
- Platform expansion with derivatives and new car lines
- Portfolio enhancement from Q3
Mid - engine
- Expansion into high margin segment
- AM Valkyrie from H2 and expansion of portfolio in Q4
- Valhalla from H2 2023 and Vanquish (all electrified) portfolio to follow
F1TM strengthens brand and provides global marketing platform
Driving Brand Awareness
Provides tremendous brand reach and halo without team ownership costs1
Strengthen Brand
>80% of luxury/premium car buyers are interested in F1TM
22 Races
Opportunity to engage with over 85 million fans and customers each race
20 races in markets with a dealer footprint where we can provide exceptional customer experience
Notes: (1) Sponsorship arrangement has commercial terms commensurate with the Company's current annual F1TM expenditure (2) interest payment dates are Q2 and Q4 (3) 10.5% interest applied to c. $85m (4) no-call four years on first lien/bond tap and three years on second lien (5) c. £1.1bn equivalent at current FX rates
Q1 2021 - substantial improvement year-on-year
(#) | Total Wholesales(1) | (#) | Adj. EBITDA | (£m) | Net Debt ooooo | |||||||||||||||||
Q1 21 | ||||||||||||||||||||||
1,353 | Q1 21 | 21 | Q1 21 | 723 | ||||||||||||||||||
Q1 20 | 2 | |||||||||||||||||||||
578 | Q1 20 | |||||||||||||||||||||
(38) | 956 | |||||||||||||||||||||
Q1 20 | ||||||||||||||||||||||
Revenues | Free Cash Flow(3) | |||||||||||||||||||||
(£m) | (£m) | Adj. EBIT | (#) | |||||||||||||||||||
Q1 21 | Q1 21 | |||||||||||||||||||||
224 | (15) | Q1 21 | 24 | |||||||||||||||||||
2 | 2 | Q1 20 2 | ||||||||||||||||||||
Q1 20 | 89 | Q1 20 | (67) | (93) | ||||||||||||||||||
Note: Cash interest payments on First Lien ($1.2bn @10.5%) and Second Lien ($335m @8.9%) are in Q2 and Q4 | ||||||||||||||||||||||
Q1 2021 wholesales - strength in Americas and China | ||||||||||||||||||||||
Wholesale ASP (£k) | ||||||||||||||||||||||
113 | 151 | |||||||||||||||||||||
UK | 113 | 149 | ||||||||||||||||||||
Americas | +19% | EMEA | Q1 20202 | Q1 2021 | ||||||||||||||||||
272 units | ||||||||||||||||||||||
+303% | +92% | APAC | Core | Total | ||||||||||||||||||
431 units | 284 units | |||||||||||||||||||||
Wholesale mix | ||||||||||||||||||||||
+289% | ||||||||||||||||||||||
(China+963%) | ||||||||||||||||||||||
366 units | Specials: 1 | |||||||||||||||||||||
Other: 54 | ||||||||||||||||||||||
(38%) | 100% | |||||||||||||||||||||
Sport: 312 | |
66% | |
SUV: 746 | GT: 1,116 |
n.m. | |
(24%) | |
Q1 2021 Adjusted EBITDA £21m with 9% margin
6
13 | 8 | 21 | ||||||||
34 | (2) | |||||||||
(38) | ||||||||||
Q1 2020 Adj. EBITDA2 | Wholesales & mix | Net pricing | Other gross margin | Net operating expenses | FX | Q1 2021 Adj. EBITDA | ||||
1 | Wholesales & mix | 2 | Net pricing | 3 | Net Opex | |||||
Volume: +775 units | • Benefit from decreased incentives | • Efficiency savings | ||||||||
Geographic mix | • Some fixed marketing phasing |
Product mix
Notes: (1) Wholesales: Company sales to dealer; (2) Q1 2020 re-stated; (3) Operating cashflow less capital investment and cash interest; (4) other consists of prior generation models
Alternative Performance Measures
All metrics and commentary in this document exclude adjusting items unless stated otherwise. Certain financial data within this document have been rounded. In the reporting of financial information, the Directors have adopted various Alternative Performance Measures ("APMs"), previously called 'Non GAAP measures'. The key APMs that the Group focuses on are as follows:
- Adjusted EBIT is loss from operating activities before adjusting items
- Adjusted EBITDA removes depreciation, loss/(profit) on sale of fixed assets and amortisation from adjusted operating loss
- Net Debt is current and non-current borrowings in addition to inventory financing arrangements, lease liabilities recognised following the adoption of IFRS 16, less cash and cash equivalents, cash held not available for short-term use as shown in the Consolidated Statement of Financial Position (the definition of this APM has been updated since 31 December 2019)
IV. | Free cashflow is represented by net cash (outflow)/inflow from operating activities plus the net cash used in investing activities plus interest paid in the |
period |
Disclaimer
This presentation has been prepared by Aston Martin Lagonda Global Holdings plc ("AML") solely for use at the Q1 results analyst and investor meetings being held in connection with a discussion of its Q1 2021 results. For purposes of this notice, this "presentation" shall include these slides and any question-and-answer session that follows oral briefings by AML's executives. This presentation is for informational purposes only does not constitute an offer to sell or the solicitation of an offer to buy AML securities. Furthermore, this presentation does not constitute a recommendation to sell or buy AML securities.
No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. This presentation contains certain forward-looking statements, which are based on current assumptions and estimates by the management of AML. Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. These risks may include, for example, changes in the global economic situation, and changes affecting individual markets and exchange rates. AML provides no guarantee that future development and future results actually achieved will correspond to the forward-looking statements included here, and accepts no liability if they should fail to do so. We undertake no obligation to update these forward-looking statements, which speak only as at the date of this presentation, and will not publicly release any revisions that may be made to these forward-looking statements, which may result from events or circumstances arising after the date of this presentation. This presentation is confidential and is being delivered to selected recipients only. It may not be reproduced (in whole or in part), distributed or transmitted to any other person. By attending the meeting at which this presentation is being given, you will be deemed to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice.
Contacts details
Aston Martin Lagonda Investor Relations Team
Charlotte Cowley, Director of Investor Relations
Tel: +44 (0)1926 501065
Email: charlotte.cowley@astonmartin.com
Brandon Henderson, Senior Manager, Investor Relations
Tel: +44 (0)1926 501110
Email: brandon.henderson@astonmartin.com
www.astonmartinlagonda.com/investors
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Aston Martin Lagonda Global Holdings plc published this content on 10 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 June 2021 15:43:03 UTC.