Core Viewpoint - Aston Martin is facing significant financial challenges, leading to a series of drastic measures including potential layoffs, reduced capital expenditure, and a strategic business transformation [1] Group 1: Financial Performance - In fiscal year 2025, Aston Martin's global wholesale sales reached 5,448 units, a year-on-year decline of 10% [1] - Revenue for the same period was £1.26 billion, representing a 21% decrease compared to the previous year [1] - The adjusted EBIT loss amounted to £190 million, while the operating loss widened to £260 million, up from a £100 million loss in fiscal year 2024 [1] - The company reported a full-year free cash flow outflow of £410 million [1] - At year-end, net debt stood at £1.38 billion [1] Group 2: Strategic Measures - Aston Martin plans to implement a global workforce reduction of up to 20% [1] - The company intends to permanently sell the naming rights of its F1 team for £50 million [1] - There will be a reduction in medium to long-term capital expenditures as part of the overall business transformation strategy [1] Group 3: Market Context - The CEO highlighted that 2025 is expected to be one of the most turbulent years for the global luxury car market due to escalating geopolitical conflicts, increased global tariffs, and macroeconomic pressures [1] - These challenges have hindered the company's ability to leverage its brand and technological advantages, negatively impacting sales, efficiency, and profitability [1]

Group 1 - The company expects total wholesale volumes in fiscal 2025 to decline by mid-high single digit percentage compared to the prior year [1] - Management has initiated a review of future cost and capital expenditure, with adjusted EBIT for fiscal 2025 expected to be below the lower end of market consensus [1] - The company no longer anticipates achieving positive free cash flow generation in the second half of 2025, but expects sequential improvement in free cash flow generation in the fourth quarter of 2025 [1] - Profitability and free cash flow generation for fiscal 2026 are expected to materially improve compared to fiscal 2025 [1] Group 2 - The company delivered approximately 1,430 wholesale units in the third quarter of 2025, a decrease from 1,641 units in the same period a year ago [2] - This delivery figure was below the previous guidance of being broadly similar to the prior year period [2]

Core Viewpoint - Aston Martin Lagonda (China) Automobile Sales Co., Ltd. has filed a recall plan with the State Administration for Market Regulation due to a defect in the brake control unit software, affecting vehicle safety [1] Group 1: Recall Details - Recall Number S2025M0139V involves 6 units of the Vanquish Coupe produced between December 17, 2024, and April 30, 2025 [1] - The recall is initiated due to a software issue that may incorrectly disable the electronic vacuum pump of the brake system during vehicle startup, leading to insufficient brake assistance and reduced braking performance [1] Group 2: Safety Implications - The identified defect poses a risk of accidents due to compromised braking capabilities, highlighting a significant safety concern for the affected vehicles [1]

Core Insights - The Chinese luxury car market is experiencing a significant shift, with domestic high-end brands gaining market share and challenging traditional luxury brands [2][12][15] - In the first half of 2025, the total sales of luxury cars in China are projected to be around 1.6 million units, showing a slight decline of 5%-7% year-on-year, while domestic high-end brands report a growth of approximately 35% [2][14] - The key factor driving this change is the increasing importance of "intelligent features" in consumer decision-making, with brands that excel in smart technology gaining a competitive edge [2][16] Domestic High-End Brands Performance - Domestic high-end brands achieved total sales of approximately 920,000 to 950,000 units in the first half of 2025, marking a significant increase and filling the gap left by declining traditional luxury brands [14][15] - Notable performers include Li Auto with 208,000 units, AITO with 206,000 units, and a combined total of over 250,000 units from brands like NIO, Xpeng, and Xiaomi in the 300,000 yuan and above segment [14][15] - BYD leads the industry with total sales of 2.146 million units, including around 120,000 units from high-end models [14] Traditional Luxury Brands Performance - Traditional luxury brands, particularly the German trio (BBA: Benz, BMW, Audi), are experiencing significant declines in sales, with Benz down 14.2%, BMW down 19.6%, and Audi down 15% in the first half of 2025 [5][6][7] - Lexus stands out as the only traditional luxury brand showing growth, with sales of 85,000 units, maintaining its position as the top-selling imported luxury brand for five consecutive years [5][6] - The super-luxury segment is also facing challenges, with brands like Porsche and Bentley reporting declines of 28% and significant drops in sales across other super-luxury brands [10][11] Market Dynamics and Consumer Behavior - A shift in consumer preferences is evident, with buyers prioritizing technology and practicality over brand prestige, leading to increased demand for vehicles equipped with advanced smart features [16] - Policy changes, such as the adjustment of consumption tax for super-luxury cars, have raised costs for high-priced models, further impacting sales of traditional luxury brands [11][16] - The competitive landscape is evolving, with domestic brands leveraging local supply chains and rapid software updates to position "smart luxury" as a core selling point [3][16]

Group 1 - Aston Martin's stock price increased by over 9.7%, leading European automotive stocks [1] - General Motors' stock price rose approximately 3%, reaching a daily high above $46.80 [1][3] - The British pound maintained a 0.3% increase, stabilizing around 1.3330 [1] Group 2 - The U.S. will reduce tariffs on cars manufactured in the UK to 10% [1] - UK automotive manufacturers will receive a quota of 100,000 vehicles at the lower tariff rate [1] - Beef tariffs will be lowered to "near zero" levels [1]

Group 1 - European automotive stocks generally experienced gains, with Aston Martin rising by 6.14% and Daimler Truck increasing by 3.83% [1] - Other notable increases included Saint-Gobain at 3.5%, BMW at 3.47%, and Continental AG at 2.75% [1] - Ferrari saw a rise of 2.7%, while Renault and Volkswagen increased by 2.36% and 2.28% respectively [1] Group 2 - Aston Martin Lagonda's latest price was 65.65, opening at 63.90, with a high of 65.94, reflecting a gain of 3.80 [2] - Daimler Truck Holding's latest price was 33.64, opening at 33.37, with a high of 33.86, showing an increase of 1.24 [2] - Saint-Gobain's latest price was 85.24, opening at 84.64, with a high of 85.94, marking a gain of 2.88 [2]

Financial Data and Key Metrics Changes - The performance in Q1 2024 was in line with expectations, reflecting a planned transition period [1] - The company reiterated its 2024 guidance and medium-term targets, including achieving positive free cash flow generation in the second half of the year [2] - Q1 free cash flow was in line with expectations, with a slight impact from early interest payments due to refinancing [6][24] Business Line Data and Key Metrics Changes - The company ceased production and delivery of outgoing core models ahead of ramping up production of three new core vehicles this year [2] - The DB12 received exceptionally strong reception with orders extending into Q4, while enthusiasm is building for the new Vantage and upgraded DBX707 [2][3] - Revenue contribution from options for the DB12 surpassed 15%, showing over 200 basis points improvement from its predecessor [7] Market Data and Key Metrics Changes - The company is preparing for a significant ramp-up in production, targeting an increase from around 1,000 units per quarter to a run rate of 2,500 units in the second half [11][12] - The order book for the DB12 is strong, with many conquest customers from other brands, indicating a positive market response [9][15] Company Strategy and Development Direction - The company is transitioning to a new core range of models by the end of 2024, aiming to transcend the ultra-luxury and high-performance markets [1][2] - The focus remains on executing the planned product launches and achieving the free cash flow inflection point in the second half of the year [21][22] - The appointment of Adrian Hallmark as the new CEO is expected to bring valuable experience to further progress the company's strategy [4][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the targeted ramp-up in production and sales, with no significant risks anticipated [12][14] - The company expects to see growth in average selling price (ASP) for the full year, despite a slight decline in Q1 due to mix effects [19][20] - Management is optimistic about the DBX's future performance following upgrades to its interior and infotainment systems [34] Other Important Information - The company successfully completed refinancing, securing improved terms on new senior secured notes, which strengthened its balance sheet and liquidity position [4] - The company is actively recruiting for additional manufacturing roles to support production plans [4] Q&A Session All Questions and Answers Question: Insights on free cash flow evolution in Q2 - Management expects Q2 to be a free cash outflow but not to the extent seen in Q1, with confidence in hitting the inflection point for positive free cash flow in the second half [6] Question: Personalization levels on the DB12 - Revenue contribution from options for the DB12 has surpassed 15%, with expectations for continued improvement in revenue from options uptake [7] Question: Actions to relaunch the DBX - The company is implementing a media program and dealer follow-ups to attract potential customers for the DBX707 [9] Question: Risks associated with production ramp-up - Management is confident in the execution capabilities and has prepared for the anticipated ramp-up in production [12][14] Question: ASP changes and regional demand - Management noted that ASP has grown on a constant currency basis, with no material concerns regarding pricing [19][20] Question: Strategic agenda for the new CEO - The focus remains on executing the existing plan, with no significant deviations expected upon the new CEO's arrival [21][22]

Financial Data and Key Metrics Changes - In 2023, Aston Martin reported an 18% year-on-year revenue growth, reaching £1.6 billion, driven by a rich mix of sales and record average selling prices [5][19] - Adjusted EBITDA increased by 61% to £306 million, with a margin expansion of 490 basis points to 18.7% [25][19] - Gross margin improved by 650 basis points to 39.1%, moving closer to the target of around 40% gross margin in 2024 [24][19] Business Line Data and Key Metrics Changes - Total wholesales increased by 3% to 6,620 units, with a 14% growth in sport and GT models [19] - The DBX707 SUV saw a 25% increase in volumes, representing 71% of SUV wholesales, while overall SUV volumes decreased by 9% year-on-year [21][19] - The average selling price (ASP) for core models reached £188,000, a 6% increase year-on-year, while total ASP was £231,000, up 15% [22][19] Market Data and Key Metrics Changes - The Americas and EMEA (excluding the UK) accounted for 61% of overall wholesales, driven by strong demand for DBX707 and DBS770 Ultimate [23][19] - UK volumes grew by 3% year-on-year, while APAC volumes declined by 20%, primarily due to a 47% decrease in China [23][19] Company Strategy and Development Direction - Aston Martin aims to be the most desirable ultra-luxury British performance brand, focusing on product innovation and operational improvements [4][2] - The company is committed to achieving a minimum 40% gross margin for all new models and plans to expand its ultra-luxury retail strategy with new showrooms [10][24] - A strategic supply agreement with Lucid Group is in place to support the development of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive free cash flow generation in the second half of 2024, driven by new model deliveries and strong demand [30][34] - The company anticipates significant growth in gross profit and EBITDA in the second half of 2024, with a focus on the launch of new generation sports cars [31][30] - Management highlighted the importance of operational improvements and collaboration to mitigate supply chain risks and enhance product quality [12][13] Other Important Information - The company has formalized new values and expanded employee engagement programs, including an employee share plan [15] - Aston Martin's commitment to sustainability includes updated targets related to carbon emissions and biodiversity [15] Q&A Session Summary Question: Insights on anticipated volume split and quarterly distribution - Management indicated that the volume guidance for 2024 suggests between 7,000 and 7,300 units, with a heavy weighting towards the second half of the year [36][40] Question: Media praise for DB12 and consumer interest - Management confirmed that DB12 had a successful launch with thousands of orders prior to public availability, and they are optimistic about consumer interest translating into orders for the Vantage [37][38] Question: Customer deposits and liquidity management - Management stated there is no maximum threshold for customer deposits, but they expect the balance to decline as deliveries of certain models conclude [39] Question: Order intake for DB12 and model-by-model order book - Management confirmed that DB12 is sold out through the third quarter of 2024, with expectations to be sold out for the year by March [44] Question: ASP trajectory and pricing mix - Management expects further rising ASPs driven by strong pricing dynamics and a favorable mix of new models [45] Question: Cash generation and free cash flow expectations - Management anticipates achieving positive free cash flow in the second half of 2024, with a more stable cash flow profile expected from 2025 onwards [51][52]

Financial Data and Key Metrics Changes - Year-to-date revenue increased by 21% year-on-year, driven by higher volumes and favorable product mix, with total ASP at £219,000, up 12% year-on-year [10] - Year-to-date gross margin expanded to 36%, increasing 300 basis points year-on-year, with Q3 gross margin over 37% [11] - Adjusted EBITDA of £131 million increased by 64% year-on-year, with an adjusted EBITDA margin of 13%, up over 300 basis points year-on-year [11][12] - Free cash outflow improved by £39 million year-on-year to £297 million, with increased capital investment year-on-year to £276 million [12] Business Line Data and Key Metrics Changes - Wholesale increased by 8% year-on-year to 4,398 units, primarily driven by a 23% increase in DBX volumes, offsetting lower sports car sales [9] - The DB12 order book extends into Q2 2024, with 55% of initial customers being new to the brand [4][9] Market Data and Key Metrics Changes - Demand remains strong across existing and new product lines, with DBX orders running into next year [9] - The company is transitioning from old products to new models, impacting wholesale deliveries [41] Company Strategy and Development Direction - The company aims to become the world's most profitable, desirable ultra-luxury high-performance brand, with a focus on launching new models [3][4] - The launch of the DB12 is seen as a major milestone, with expectations for a strong response to upcoming new sports cars [4][5] - The company plans to continue rolling out specials annually and is focused on reducing leverage and retiring debt [14][56] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in achieving financial targets for 2024, despite a slight delay in DB12 production [5][57] - The company anticipates a significant acceleration in financial performance in Q4, driven by new product launches [8][15] Other Important Information - Total liquidity at the end of September stood at over £600 million, including £216 million from a share offering [13] - Net debt was around £750 million, broadly stable from the beginning of the year [13] Q&A Session All Questions and Answers Question: DB12 demand and lead times - Management is pleased with the DB12 order book, expecting to sell out all of next year's production by year-end [19] Question: DBX updates and refresh - The new infotainment and interiors for DBX are in the works, with updates expected soon [19] Question: Specials deliveries expectations - Management expects a smooth delivery of specials, including the Valkyrie and DBR22, in Q4 [20] Question: Volume guidance related to DB12 delays - The updated volume guidance is entirely related to DB12 production delays, not softer volumes in other areas [24] Question: Free cash flow guidance - Positive free cash flow is expected for Q4, with slight impacts from volume adjustments and working capital dynamics [25] Question: Gross margin insights - Strong gross margins in Q3 are attributed to a rich mix from specials and initial DB12 deliveries, with expectations for continued improvement [26] Question: DBX order book length and execution issues - Management is satisfied with the DBX order book and has improved supplier relations to mitigate execution issues [32][33] Question: Demand momentum in Asia and North America - Demand dynamics in North America remain stable, while the transition from old to new products has impacted wholesale deliveries [44] Question: Proportion of new customers in the order book - Currently, 55% of DB12 customers are new to the brand, many coming from DBX ownership [52] Question: Product ladder for customer retention - The company plans to establish a clear product ladder, with new models and updates to retain customers within the brand [55]

Nine months ended 30 September 2023 Q3 2023 Results YTD and Q3 2023 Highlights Performance in line with guidance and shows continued momentum and strong demand across product lines ▪ Q3 performance in line with guidance; FY 2023 guidance maintained other than marginally updated volumes • YTD revenue up 21%, driven by ASP growth and strong demand • Gross profit increased by 30% YoY with a gross margin of 36% YTD ; gross margin reached 37% in Q3 2023 • Adj. EBITDA increased 64% YoY to £131m or a margin of 13% ...