Aston Martin-2014

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CMV

Key challenge is to fund new vehicle

programmes

to create product momentum

Aston Martin 2014

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CMV

Aston Martin – Sales 2012 Units Estimation: ~3500 vehicles

GAYDON-based Aston Martin, posted a pre-tax loss of almost £25m (€-29, 25 Mio) for the year ended December 2012, up from a £21m (€-24,75 Mio) loss the previous year. Sales were down by 9% to £460m (€-538,2 Mio). Accounts filed at Companies House attribute the widening loss to the "market segment (that) has been severely affected by recession".The 100-year old firm said that the high-end luxury sports segment had been severely affected by recession and in 2012 global sales levels were down by nearly 40% from its 2007 peak. The luxury sports car market may well be down, and especially so in Europe, but that isn't the whole story. In contrast, Ferrari, for example, posted record results in 2012, with its best ever trading period in the company's 66-year history.

3.500

4.250 4.200

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

2010 2011 2012

Aston Martin SALES 2010 / 2011 / 2012

Units

The automotive premium market is still strong:2013 Aston Martin changes into a new ownership structure

The point is that other luxury car brands have done well while Aston Martin has struggled of late. Part of that struggle is down to the fact that the firm was heavy on debt after it was sold off by Ford. The cost of servicing this debt in turn impacted on new model development. While some new models have been introduced, the technological underpinnings stretch back in some cases to some quite dated Ford technology.Put simply, Aston has fallen behind rivals.Aston Martin was majority-owned during 2012 by Investment Dar (a Kuwaiti investment fund) but late last year InvestIndustrial agreed to invest £150m (€175,5 Mio). in return for a 37.5% stake. Despite recent losses, Aston Martin's management is looking forward with some optimism. In large part that is due to the recent announcement that the German premium car firm Daimler could take a stake in locally-based Aston Martin after the latter signed an intention to enter a technical partnership with Mercedes-Benz.Daimler - which owns Mercedes - will take an equity stake of up to 5% in Aston Martin if the agreement does go ahead. Both sides have indicated that they hope to sign an agreement in the next few months. It's a much needed move for Aston which will continue to struggle on its own to develop new cars and to source new technology. In particular, Mercedes will supply Aston Martin with engines. In addition, Mercedes-Benz Cars will provide Aston Martin with components for future models. This is a welcome move. Aston Martin has indicated that it intends to invest £500 million (€ 585 Mio) over the next four years. But in car industry terms that doesn't go very far at all: JLR for example spent well over £400m (€ 468 Mio) just getting the new Range Rover to market. So Aston Martin needs a tie up with a bigger player to access technology and components and Mercedes offers just that opportunity.

Estimation is based on market research , there are no official figures from Aston Martin

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CMVThe automotive premium market is still strong:2013 Aston Martin changes into a new ownership structure

ChinaEquity invests in Aston Martin - 22 October, 2013

ChinaEquity Group has joined forces with European private equity firm, Investindustrial, investing indirectly in Aston Martin, the 100-year old high-performance luxury sports car manufacturer. ChinaEquity’s objective is to help Aston Martin successfully take on the large and growing Chinese luxury auto segment. ChinaEquity was advised by Fozzati Partners, a private equity co-investment and corporate finance advisory firm.

ChinaEquity and other co-investors joined Investindustrial to invest £150 million (€175,5 Mio) for a 37.5% stake in the company through Prestige Motor Holdings S.A. Other major shareholders include Kuwaiti firms Investment Dar engaged with debt restructuring and Adeem a private investment company.

Aston Martin recently announced a formal ‘technical’ partnership with Mercedes-AMG. The partnership will give Aston Martin access to the supply of custom V8 engines, in addition to cutting edge new technologies. Daimler will in turn own 5% of non-voting shares in Aston Martin.ChinaEquity Group is a prominent China based private equity and venture capital investment firm with several billion US$ under management. ChinaEquity is the founder of the China Team, the first Chinese national sailing racing team to represent China in the America’s Cup. It is also a major investor in China Grand Rally.

Investindustrial is a leading European investment group of independently managed investment holding and financial advisory companies with €3.1 billion of combined assets under management. Its mission is to actively contribute to the development of the companies in which it invests, by creating growth opportunities and offering global solutions through an active ownership and entrepreneurial vision.

Fozzati Partners is a private equity co-investment and financial advisory firm.


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Financial Overview : Profit & Loss

Aston Martin Holdings (UK) Ltd.

Annual Profit & Loss

[Standardized in GBP Millions]

31-Dec-2012 31-Dec-2011 31-Dec-2010 31-Dec-2009 31-Dec-2008

Period Length 52 Weeks 52 Weeks 52 Weeks 52 Weeks 52 Weeks

Filed Currency GBP GBP GBP GBP GBP

Consolidated No Yes Yes Yes Yes

Total Turnover 461,2 506,8 474,3 347,9 537

Cost of Sales 313,1 439 389,6 288,7 428,3

Gross Profit 148,1 67,8 84,7 59,2 108,7

Depreciation 37,2 32,1 21 21 17,3

Other Expenses 156,9 59,5 49,4 45,3 62,6

Profit Before Interest and Taxes 6,5 18,6 43,8 36,7 46,1

Other Income 15,3 10,2 8,6 22,9 11,5

Interest Paid 40,6 51,7 36,9 29,8 48,9

Profit Before Taxes -34,1 -33,1 6,9 6,9 8,7

Tax Payable / Credit -9,2 -12 -0,7 2,9 2,1

Dividends 0 30 - - -

Profit After Taxes -24,9 -51,2 7,6 4 6,6

Number of Employees 1173 1187 1188 1272 1460

Wages 53,2 48,5 48,9 47,7 55,3

Social Security Costs 4,9 4,1 4,3 3,9 4,8

Other Pension Costs 7,8 6,4 1,3 2,5 4,1

Employees Remuneration 65,9 59 54,5 54,1 64,2

Audit Fees 0,1 0,1 0,1 0,1 0,1

Non Audit Fees 0,5 0,6 0,3 0,4 0,3


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CMV

474,3506,8

461,2

537,0

347,9

0

100

200

300

400

500

600

2008 2009 2010 2011 2012

SALES 2008 - 2012

(£m)

-33,1 -34,1

6,98,7

6,9

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10

15

2008 2009 2010 2011 2012

Profit after Tax 2008 - 2012

(£m)

Outlook Outlook

Model Range Segment

Next

Model

Production

2007

Production

2008

Production

2009

Production

2010

Production

2011

Production

2012

Production

2013

Vantage Sports 2014 4772 3426 1153 1427 1596 1500 1250

Virage Sports 0 0 0 0 763 400 0

DB9/DBS Sports 2015 2436 3061 1322 1276 657 425 125

New DBS Sports 2012 0 0 0 0 0 50 350

New DB9 Sports 0 0 0 0 0 0 600

Lagonda Sports - SUV ??? 0 0 0 0 0 0 0

Rapide Tourer 0 0 0 1498 853 380 0

Rapide Tourer 0 0 0 0 0 290 500

Vanquish Sports 2009 165 0 0 0 0 370 325

Cygnet A/B Stop 2014 0 0 0 0 558 160 125

7.373 6.487 2.475 4.201 4.427 3.575 3.275

Financial Overview : Sales & PAT & Production FiguresEstimation is based on market research , there are no official figures from Aston Martin

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CMV

Fixed Assets

Million £ 739,4

Current Assets

Million £ 156,9

Total Assets

Million £ 896,3

Shareholder Equity

Million £ 263,1

Long Term Liabilities

Million £ 406,3

Current Liabilities

Million £ 226,9

Total Equity & Liabilities

Million £ 896,3

Aston Martin Balance Sheet 31st of December 2012

CL

+ L

TL

M

illi

on

£ 6

33.2


Annual Balance Sheet

[Standardized in GBP Millions]

31-Dec-2012 31-Dec-2011

Total Fixed Assets 739,4 709

Cash and Equivalents 50,4 46,6

Total Current Assets 156,9 141,9

Total Assets 896,3 850,9

Trade Creditors 47,4 50,7

Bank Overdraft 41,3 -

Other Current Liabilities 118,7 80,4

Total Current Liabilities 226,9 136,1

Other Long Term Loans 295,1 293,5

Total Long Term Liabilities 296,4 316,1

Deferred Taxation 97,9 102,8

Other Provisions 11,9 17

Total Provisions 109,8 119,8

Share Premium Accounts 191,5 191,5

Retained Earnings -21,7 -6

Other Reserves 93,3 93,4

Total Liabilities 1155,7 1068,4

Total Shareholders Funds 263,1 278,9

Net Worth -259,4 -217,5

Balance sheet overview : 31st of December 2012

The

Net Worth -259,4 £ Million


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CMV

Aston Martin Virage 2011 – 2012

The short product life cycle of the Virage combined with the ramp up phase in production of the new DB9 created a gap in the product portfolio and is one of the reason for the declining revenue stream from 2011 with £ 506,8 million down to 461,2 million in 2012.Additional increased the expenses in 2012 , due to the fact that the Virage was only 18 months on the market and only 1,000 units were produced, therefore the model was not able to generate the necessary return on investment, and we think that was the main factor for the rising expenses from £ 59,5 million in 2011 up to £ 156,9 million in 2012. Additional there were £ 12,5 million impairment charges for the stop of the Cygnet Vehicle production in 2012.

The next Aston Martin DB9 was launched in 2013, and has a similar, but more aggressive styling than the Virage. It will also be more powerful than the Virage, utilizing a 6.0-liter V-12 engine that delivers 510 HP, but not as powerful as the Vanquish which produces 565 HP in Gaydon.The future DB9 will get a boost in price when compared to the current generation, with clients expected to pay about £150,000 ($237,000 at the current exchange rates), up from the current £128,000 ($202,000 at the current rates). of course, it will still be cheaper than the Vanquish, which is priced at £190,000 (about $300,000 at the current rates).2013 Aston Martin DB9

2012 Aston Martin Virage

Profit & Loss impact: Short product life cycle of Aston Martin Virage


Annual Profit & Loss

31-Dec-2012 31-Dec-2011

Total Turnover 461,2 506,8

Other Expenses 156,9 59,5

Profit After Taxes -24,9 -51,2


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CMVRevenue estimation 2012 based on production figures

Outlook Outlook Outlook 2012 Outlook 2012 Outlook 2012

Model Range

Production

2012 Price US$

Revenue

Estimation

Revenue

Estimation US$

Revenue

Estimation £

Vantage 1500 122 400 - up to 150 000 130.000 195.000.000 123.417.722

Virage 400 208 000 up to 220 000 210.000 84.000.000 53.164.557

DB9/DBS 425 180 000 up to 200 000 190.000 80.750.000 51.107.595

New DBS 50 275 000 up to 300 000 280.000 14.000.000 8.860.759

New DB9 0 180 000 up to 200 000 190.000 0 0

ONE 77 77 1.400.000 1.400.000 107.800.000 68.227.848

Lagonda - SUV 0 0 0 0 0

Rapide 670 200 000 up to 220 000 210.000 140.700.000 89.050.633

Vanquish 370 280 000 up to 300 000 290.000 107.300.000 67.911.392

Cygnet 160 50 000 50.000 8.000.000 5.063.291

3.942 466.804.297

Revenue estimation is based on market research , there are no official figures from Aston Martin.

Main purpose was to classify and visualize the leverage of units and selling price.

Based on press announcements Aston Martin has a target of boosting annual sales to about 7,000 vehicles in 2016 from about 3,400 cars in 2012, with growth propelled by catering to growing demand in Asia, North and South America.Additional there are plans to launch a SUV model to step into this attractive market segment.

Key challenge is to found new vehicle programmes, which requires a lot of capex before the invested money returns.


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CMV

Key challenge is to fund new vehicle

programmes

to create product momentum

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CMV

Outlook Outlook

Model Range

Production

2012

Production

2013

Vantage

1500 1250

Virage 400 stop

DB9/DBS 425 125

New DBS 50 350

New DB9 0 600

Lagonda - SUV 0 0

Rapide 670 400

Vanquish 370 325

Cygnet 160 stop

3.865 3.550

New product line is essential for Aston Martin

Next steps:

Financial status; based on new financing, Investindustrial

Cash – available, bank loans to fund new vehicle programmes

Evaluation of cooperation's

Technical capabilities, power train, suspension

Global retail network / customer service

Feasibility study of SUV expansion

Business case SUV expansion

Business plan to expand sales volume above 7000 units per year


Automotive

Aston Martin-2014