Aston Martin Lagonda Global Holdings plc

Good morning and welcome everybody to our full year results conference this morning. I'm happy to take a question in a few seconds. Let's just give me a brief overview about all the key messages. Has been really transformational year last year and we set up our turnaround plan as well as growth strategy. Everything is baked in a project horizon. Probably you saw our presentation and our video about the achievements over the course of last year. As well, we delivered our full year results 2020 in line with our expectations, what we set up in September slash October. We aggressively destocked. We have a very aggressive plan to destock our inventory with the dealerships and as well company stock. We almost come to an end, and we are there by the end of that quarter. So it's partially ahead of expectation as well. Successively launched SUV, DBX, with a quality-led ramp-up. So we wholesaled about 1,500 cars. In line our expectation after we realigned everything in that quality-led ramp-up approach. Cars really good received by our customers. great reviews from journalists, from magazines, but as well from customers as well, and dealerships as well, regarding quality, very important. Next derivative out of the DBX is going to come by third quarter this year, more to come in the second quarter of next year. As well, part of the whole journey, a new leadership team, obviously Ken and myself, but a new CEO with us since December, Michael Straughan, and a very, very strong leadership team now in engineering as well, for powertrain, for vehicle, as well for electrical architecture. Successfully launched Project Horizon, but I think you're going to have a lot of questions around that. We came to a new agreement with Mercedes, which is kind of a really turning point for our business for the future. So no doubt we have access to electrical architecture for the future. We have access to all powertrain derivatives of probably a V8 and other variants as well. Electrified powertrain and last but not least, electric drive platforms. Refinancing the business was a very major step for us. It is our debt rate as well. And it's supporting our goals, ambition, and it's underlined by our turnaround program as well. And really important for us is the Formula One step now. I'm happy to announce that we're going to have the new race car with us by the 3rd of March. So we unveiled a new race car. We have a full-fledged works team now. And this gives us a different, totally different view to the brand for everybody in the world. So the brand approach is going to be a different one in the future. And now I think Happy to take questions. Ken is joining me here as well as our CFO. Happy to take your questions.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. As a reminder, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A queue. This will only take a few moments. If you wish to cancel your request, please press the hash key. Once again, it's star one if you wish to ask a question. Thank you. Your first question comes from the line of Charles Caldicott from Redburn. Please ask your question.

Yeah, good morning, everyone. Thanks for taking my questions. I've got two, please. So the first on the DBX, obviously the whole sales were very strong in Q4 again. But if my math's correct, I think there was only 593 units of retail sales in Q4. And was that in line with your expectations? And when should we expect sales to customers to start exceeding 1000 units per quarter? And also, maybe also, could you update the current size of the order book for the DBX? And then my second question was going to be on Project Horizon, which obviously is going to try to improve the efficiency of the business. Can you help us a little bit quantify the improvement we should expect from that project in 2021 or maybe on a three-year time frame?

Thanks. Thanks for your questions. Very good questions. DVX retail rate last year. Yeah, but obviously, you know, we slowed down the ramp up and moved into a quality LED ramp up. So we had a lot of cars in the shipment to the dealerships. That's probably a better reason. And that's for sure the reason that we have a lower retail rate than expected previously, maybe from the former management. Absolutely. But everything was linked to the quarter four and end of quarter three with past to sale from the factory to the kind of transportation to the dealerships. And we had a lot of cars on the water to China and North America as well. So that's the reason for that. It improves. It's different now. highest priority is for us be aligned, align demand and supply. And we are doing really good at that. So that's one issue. I'm not talking about retail at the moment. So we have a clear expectation for us for the future. And now we perform a lot of test drives with our customers worldwide. in China and North America and in Europe. It's a bit of a problem in UK at the moment regarding the shutdown of the dealerships, but DBX, AutoBook, is in line with our expectation. I'm really happy with that. Sports cars are even doing better than our expectations, so we have a good situation regarding AutoBook. And as you probably know, the UK market is a bit down in January and February. We have an AutoBook for UK. We have cars with our dealers, but we are now able to, with our order book, we are able now to pull other markets in our production sequence forward. So we produce these cars a bit earlier, and we push our UK orders probably a little bit further down the road. So we now, with that order book, we are able to balance our demand and supply to the marketplaces. That's very important for us. Then Program Horizon. To quantify, you saw in the presentation, we talk about 30% of efficiency. And this is a very conservative level. Program Horizon was established by October last year. It is related to almost every corner of the company. Very important. It's related to the efficiency in manufacturing. and it really it starts in inbound it starts in freight how we got material into the plants how we treat material how we handle the whole logistics side and you know we're going to see the first outcome which is a different pattern it's a different situation it's a different footprint for our plants as well which is almost related to right size the business to our demand we have a natural demand on the market And yes, for sure, we have enough capacity with that, so we have no problem with capacities in our plants, but we right-size now the business. We come to new way how we manufacture and assembly the cars. Everything happens in the end of the first quarter now, and it's really fast how we turn around that assembly and our production facilities in the second quarter of this year. So the things comes together bits and pieces coming together and it's, it's really cross business. The whole company is touched by that.

Okay. Thank you.

Thank you. Your next question comes from the line of George Galeas from Goldman Sachs. Please ask your question.

Yup. Good morning everyone. And thank you for taking my question. So the first question I had was just on BBX volumes. It looks like they were around 64% of the wholesale mix in 4Q. Is that a good assumption for the mix of BBX in 2021? And if yes, taking your total wholesale target, that would equate to around 3.8 thousand units. which is obviously some way short of the 5,000 to 6,000 that is in the long-term 10,000-unit objective. So I was also wondering what you plan to bridge the gap. I know you've mentioned variants, but could you clarify, are these variants of models, i.e. long-wheelbase AMR coupe versions, or could they also be variants of the platform with a different nameplate, potentially in a different segment size?

Hi, George. Let me start on the numbers, and then I'll hand to Tobias to talk about product-related plans. It's Ken Greger. On the DBX wholesales, you're right. Q4 was a big quarter. Partly, you've got the normal pipeline fill of showroom models going through the wholesales in that quarter. So we've guided that we expect total wholesales for the business to be 6,000 units in Q4. of all our models being 6,000 units in 2021. Maybe DBX would be slightly more than half, but not quite at that same rate as Q4, as you kind of rightly point out. But overall, feeling good about that in terms of the level of orders and the run rate that we see. Perhaps I'd hand over to Tobias to talk about how we see the variance on DBX and how we think about that.

There's one important topic that I'd like to mention in that circle. We're not running wholesale to cover our production capacity. That's one of the most important steps what we took last year. We right-size our capacity, so we are running our manufacturing side in future on the same level of efficiency despite the numbers we produce. This is very, very important to know. So we are not driven by a capacity which is in place for the future. This is what we change right now with Project Horizon. So the 5,000 to 6,000 was kind of a guidance which was done by the previous management. For sure we're going to get there. Now we're going to have additional derivatives out of the existing DBX first to come now. And that's an outcome of our technology agreement with Mercedes. The first one is going to come to the marketplace by the third quarter of this year. The second one is going to come to the marketplace by the second quarter of next year as well. So we do increase our portfolio. And there is more to come. There is more to come. If you have a close look on our presentation on page 17, the DBX provides an excellent platform. It's a bespoke Aston Martin platform. And that makes the difference. Therefore, we have excellent reviews on drivability of the car. driving dynamics, et cetera. So this is the building block, one of the building blocks for the future. For sure more to come. I'm not talking about details, what variants we're going to push out, because we have still competitors outside in the marketplace. But yeah, for sure we are able to achieve that number over the course of the next two to three years, almost the next three years.

Great. And if I could just quickly ask about the technology agreement Could you just confirm, does the technology agreement give you access to Mercedes' EVA platform? And would that be a platform that might interest Aston Martin? And secondly, at their strategy day last year, Mercedes said that by mid-decade, they expect to be significantly below 100 euros per kilowatt hour at the system level, including cell module and battery systems. Is Aston able to access those cost levels as a result of the agreement? Thank you.

First of all, EVA, that's one platform. But Mercedes has the ownership of more than one platform. EVA is a compact related platform. I know that platform quite well out of my previous life. But there is more to come, and there are different platforms to come. So we have an access. what we have finally to decide together with Mercedes by end of next year, beginning of 2023. So there is no problem for us, and we are not in a rush to do so. Foremost, we have hybrid technology with Mercedes, which gives us an electric range. And for sure, we're in discussion with Mercedes about which platform we're going to use. It must be an excellent fit of that platform to our performance luxurious market segment. And this is what we are keen on. Regarding the battery price, this is a forecast. I know that. Battery pricing, I don't want to do any comments on that. But for sure, the overall trend on battery, so kilowatt hours per euro or euro per kilowatt hours, is moving down. We see that everywhere. Is it probably the 100? Is it probably 110? I don't know. I don't know. But everything we got from receipt is a very, very reasonable cost situation for us. And I'm sure, I'm really sure that we can achieve a reasonable cost situation for our electric platform. For sure, related to our segment and the demand on our electric platform for performance slash luxurious business is probably a different than for our EQA platform. So this is what we have to consider. But we are not finally through that journey. Thank you. You're welcome.

Thank you. Your next question comes from the line of Angus Tweedy from Citigroup. Please ask your question.

Hi. Good morning. Two questions for me. Firstly, for Ken, you talked a bit about cash burn being down in 2021. Could you give us a few more comments on how you're thinking about working capital and perhaps If cash flow could be positive if we stripped out the moves on deposits this year on specials. And secondly, Tobias, just thinking about the electrification strategy, perhaps could you discuss any thoughts you might have and how concerned you are that we could see potentially higher taxation of high polluting ice vehicles as part of the upcoming UK budget? Thank you.

Yeah, hi, Angus. On cash flow for 2021, as I think I said before, at the time of the refinancing, I do expect it to be overall negative, likely a triple-digit number. negative across the full year. I would hope to see and we're targeting to see some positive movement from working capital in the full year, building on the positive movement in working capital that we already saw in Q4 of 2020, which was also good to see. And relating to the customer deposits, I think there'd be ins and outflows. I don't know if you're quite right on what you said on that point.

Okay, so not to expect a massive move negatively or positively in deposits for the year is a fair assumption. Overall net, no. Okay, thank you.

So coming to the point of electrification, yeah, it's part of our journey, absolutely. We're going to have a plug-in hybrid with us, which is part of the Mercedes technology transfer, with a reasonable range, electric drive range. A mid-engine program, which is one of our building blocks for the future. These cars, they're supposed to be, they have to have an electric drive train as well, or electrified drive train, excuse me, electrified drive train in that sports car segment. That's part of the mid-engine business in future. And ultimately, we're going to have an electric drive with us. So we are in the consideration why we're going to have that. And you saw our ambition. 2030, 90% of our portfolio has to be electrified or at death. And I know it quite well that in our segment, it is moving faster than in other segments. And yeah, for sure, we see carbon dioxide related, consumption related taxes all over our regions. I know that and we know that, so it's up to us to move forward. We are not able to change the future. We have to adjust us to that future.

Thank you. Very helpful.

Thank you. Your next question comes from the line of Mr. Schneider calling from Bank of America. Please ask your question.

Yes, thank you. Good morning. It's Horst Schneider from Bank of America. I have got a few questions, please. First, some housekeeping items. Can you maybe give some guidance on R&D, CapEx, but also regarding your earnings bridge, maybe on the mixed price bucket, if you have got any visibility on that. Then in your presentation, you also mentioned the better order intake on GT and sports cars. Could you maybe provide some more details on that? And then the last question that I have relates to DBX. Can you maybe tell us in which region you see the best demand? Which regions are rather underperforming a little bit your expectations? And in general, if I want to order a DBX today, what are the waiting times that I should expect?

Maybe I start. Thanks, Hort. Maybe I'll start with the R&D and CapEx. We previously said that we expected R&D and CapEx to be between 250 and 300 million pounds each year for our business plan period. We're guiding today that we expect it to be between 250 and 275 million pounds for 2021. So it's very much in line with what we said before. I think on mix and price for 2021, We're looking to build on what we saw through 2020, where we saw some improvement overall in the average selling price and the mix in Q4, really driven by a combination of factors, driven by delivery of specials in Q4, delivery of DBX in Q4, and sequential reduction in dealer and retail incentives. And all those themes are... themes that we are looking to build on in 2021? At which point, perhaps I'll hand over to Tobias to talk about order intake and VDX.

Order intake, you know, sports cars is coming to the sports cars portfolio. It turns out that it's better than we thought. It's ahead of expectation, what we saw last year. So we have a good situation regarding order intake of sports cars. We have an additional variant with us, Vantage Roadster. We're going to have another more performance-oriented variant with us coming soon. We're going to present that next week or the week after to our customers and clients. And then the EBX is in line, absolutely in line with expectation. And as you know, probably the market slowed down in January and February. And now we have a good tip in UK, especially in UK, because dealerships have very restrictive situations at the moment. But with our order book, we are able to maneuver around that, and we are making sure that we can rearrange our production sequence, because we have strong order books for sports cars and for DBX. And that's really a good situation for us. The lead time, if you're going to order one, maybe let me know and I'll make sure that you're going to get the car a bit earlier. And DBX region, China is doing really good, is really doing good. It is in line expectation because China is obviously heavily DBX loaded. That's not a secret. Europe is doing better than we thought. So we have a bit of downside. As you know, market down January 50% for our segment, 35% in February so far in UK. Europe is covering that at the moment, which is really great. North America is doing good and well. So we're happy with what happened at the moment. Really happy.

Just quick follow-up on that, on this GT and sports cars. I mean, you said initially that you expect more than 50% share of DBX in 2021. What is the split then between GT and sports cars that we should expect in 2021?

GT and sports cars. Sports cars is, in our definition, a bit of an advantage. So advantage is still a very important share in that. But DB11, for example, is doing good, and DBS is doing good, yeah? So it's a good mix, a profitable mix for us.

All right, thank you.

You're welcome.

Thank you. Your next question comes from the line of Henning Kosman calling from HSBC. Please ask your question.

Hi, good morning. Thank you for taking the question. Maybe going back to the operational excellence and the 30% savings. I don't know if I missed it, but could you give us the basis for that? Did you suggest it's over all variable and fixed costs? And if you could give us a Euro number for that. And again, I think Tobias said in the prepared remarks in the video that you're well on track in 2021, if you could give us some sort of quantum on that as well. And finally, just on that point, I think you sort of mentioned that affects all corners. of the company. So I would expect in that sense also the R&D within the CapEx and R&D guidance, notwithstanding it's the capitalized R&D here. But wouldn't that imply that the CapEx within that 250 to 300 million guidance over the period, that the CapEx would sort of increase as the R&D decreases as you generate efficiencies there? So that's the sort of first block of questions.

And then

If you allow me as a second part, just on the cash again, I think Ken said in the prepared remarks to reduce the cash burn. I was wondering if there's any quantum on that at all, if you could sort of help us with an order of magnitude and if there's any cash out for restructuring included in that as well in your mind as you talk about right sizing of the capacity and what your plans might be for the magnitude of that right sizing in 2021. Thank you very much.

Thanks, Henning. Let me see if I can start and cover as many of the questions as you talked about. In terms of the cash burn for 2021, I do expect it to be negative. But I do expect it to be substantially lower than the cash outflow that we had in 2020. Still a triple digit number. but significantly lower. In terms of the restructuring cost within that, there's a modest amount within that, but not huge in terms of the restructuring cash that we expect, and so that's kind of covered within that. In terms of the efficiencies as You asked about, yeah, in the presentation we talk about 30%. We're talking, you know, restructuring programs across all areas of the business. We're thinking very significantly about material costs, variable labor, freight, inbound freight, outbound freight, all the variable areas of our cost base when we think about a number like that. We're not providing a paramillions guidance on that number, but what I would say is it's a very significant contributor to our delivery of our guidance that we're providing in 2021 to go from our negative EBITDA that we had in 2020 to mid-teens EBITDA for 2021, and then building on that through to our medium-term guidance of half a billion pounds of EBITDA by 2024. So it builds through time, is what I'm saying. Okay, thank you. I may have missed one of your questions there. I'm sorry if so.

No, that's okay. The two blocks were just around the magnitude of the 30% and the magnitude of the cash burn. So I think that's correct. Okay. Yeah, thank you very much.

Thank you. As a reminder, if you'd like to ask a question, please press star 1 on your telephone. Your next question comes from the line of Jose Osamendi, calling from JP Morgan. Please ask your question.

Thank you very much, and good morning, Tobias and Ken. It's Jose from JP Morgan. A couple of items. Can you speak a little bit about coming back to cash flow and this balance between capex and DNA? Can you help us understand a bit how do you think DNA on the cash side is going to evolve in 2021? And do you foresee maybe to be a bit more balanced or still be a cash outflow versus capex? Second, Tobias, can you speak a little bit about around maybe the short-term cost-cutting actions you have implemented since you arrived at the firm? And also, you know, when you have a look at the business and you're trying to – capacity with deliveries to dealers. Is there additional need to do potentially additional asset write-downs on the facilities, or is this something that you're not considering in the medium term as you try to obviously bring this company to generate cash? Thank you very much.

On the last point, no, we are not anticipating any further write-downs or impairments of facilities on that point. On the capex and R&D, we provided guidance that we expect capex and R&D this year to be 250 to 275 million. We provided guidance that we expect depreciation amortization to be in the range 240 to 250 million pounds. So, yes, I would continue to expect the capex to run ahead of the depreciation amortization. That's kind of normal. And so that you get what you referred to, which is a small net negative in the cash flow from the combination of those items.

Coming to cost cutting and facilities as well. Yeah, for sure. In the very first moment, we changed the business. We started to change the business in September, October. We saw first outcomes. The guidance for bringing programs or derivatives of DBX to life, what the company thought and what we achieved, it's really significantly different at the moment. So we are able to bring a derivative to life with much lower CapEx investments than the company thought before because we have a different leadership team now in place. So we know exactly to whom to talk, how we talk, and how we move forward with engineering. So engineering runs now a commodity approach. Everything is more strategically linked. So we're not talking about bits and pieces for one car line. We always talk on a strategic perspective. And this gives us really, really good improvements. That's one side of the business. The other side of the business is cost. Yeah, it's cost cutting. It's an efficiency program across the whole operations. and to make sure that the whole operation maneuvers and acts on an efficient basis despite if you produce 50 cars a day, 20 cars, or 25 cars a day. It should be always the same efficiency. And the company has not been in that situation because it was everything a little bit too much regarding the facilities. We now apply a different footprint for the plans. So we consolidate single items in the plans We come to a much more flexible and agile approach, how to assemble, how to manufacture cars. And these things are coming to life now. And consider, we started that journey in October. And it is unbelievable how we transformed, as well, the culture and the mindset of the people with us in the business. And the team is full activated. And it's a simple thing, but if I Consider how many people we had in the rework area when I came in to rework all the cars to make them ready to ship and where we are now. That's an unbelievable journey, and I never saw a journey that fast moving forward. And this is all over the business regarding operations, coming from inbound freight, how we do the logistics internally. It is almost everywhere. It is everywhere. The company thought they have a bespoke plan to build Valkyrie. There was no need to. So we never used it. There's nothing that we have to write off on the other side because we can use it for engineering for the future. But if you do that, you have additional headcount, you have additional overhead, you have additional fixed costs. We just decided to move it to Gaiden, to the main factory, and it's now here. We moved it within two weeks. from that bespoke factory to Gaydon and now Gaydon is the heartbeat of sports cars, including like rebuilt. And that's really a good engaging situation. So it's a different level. It's a different company in, in, in almost two to three months. And it's really, really linked to it's variable costs and it's fixed costs. It's everywhere. You know, if you moved out down hours per vehicle, it's variable costs. If you move down the overhead and quality and, manufacturing, engineering, and other parties, it's fixed cost. If we shut down a paint line, for example, it's fixed cost. So things like that are going to happen. It's a consolidation of the business.

Thank you very much. That's brilliant. I mean, it sounds like there's a turning point definitely on the business. Definitely. Thank you for all that color. And by the way, you know, Your previous – the previous management team, obviously, we went through a phase of missing a lot of financial targets that were put out there. It's very important to sort of deliver the financial targets you are setting for 21, for 22, and the midterm plan. So from an equity perspective also, can you comment a bit about – and I know you have given comments already, but in terms of the unit sales, you're trying to hit 21, 22, 23. What is the level of unit sales you feel very comfortable with? Like this company can definitely deliver this number of units and we can definitely hit the financial targets. How do you look at that from your point of view?

We gave a strategic guidance and this is linked to 10,000 units, 500 million EBITDA, 2 billion turnover. And we stick to that. in line with the strategic guidance. Are we able to deliver it probably earlier? Don't ask me today, okay? Please consider that. I'm not able to give you an answer on that. We are doing good. There's bits and pieces coming together, but we are careful with our projection for the future. We don't want to underdeliver as a new management team, as a new company. So I'm careful with that. I stick with our preview and forecasts. Very good. Thank you. Sorry about that. Perfect. Thank you. Thank you.

Thank you. Your next question comes from the line of Angus Tweedy from Citigroup. Please ask your question.

Hi, Angus again. Just a follow-up. I wonder if you could talk a little bit about how the Aston Martin Valkyrie launch is going, whether you've had any further difficulties with lockdowns and things there. And perhaps just a little bit more detail about how you're thinking about the mid-engine sports car launch in kind of 2023 time.

Coming to Valkyrie, that's a very reasonable question. I have a few of many experiences now in the meantime with hypercars, and hypercars are complicated. In my last life, I had a complicated hypercar, and now I have another complicated hypercar. And the Valkyrie is even a bit more complicated regarding the vehicle approach. But it is still a challenge. I'm really honest. It's still a challenge. But we had breakthroughs, and we made it. And we're doing good progress. The drivability is at the point by Friday. So we are doing good progress with that Valkyrie. We changed a lot for sure with the new engineering team. We just recently changed very much the approach how we run the testing. But I'm really confident that we're going to get likely through the finish line by the second half of this year. I'm really, really confident. I drove it now many times together with the engineering team. And honestly, it's not a car. I don't know what. It's more a fighter jet plane, regarding the complication of the car. But it's really unbelievable. The drivability is great. like a hypercar. And I'm happy with that. And we're going to have, and we talk at the minute, we talk about expansion of the portfolio regarding Valkyrie, which is really helpful for our future. And there is another market demand for additional derivatives. So more to come.

Thank you very much.

Thank you. Your next question comes from the line of Charles Caldicott from Redburn. Please ask your question.

Hi. Yeah, I just had a follow-up as well on the Valhalla, actually. I think that's going to be a major factor in you reaching cash flow break-even in 2023. Can you just confirm, is the plan still to produce 500 units of the coupe? Maybe also, could you comment on the deposits you've already taken on that vehicle? So how many millions of pounds on the balance sheet already for that? And Is the plan still for the Valhalla to have a hybrid V6, or is there an alternative in mind coming from Mercedes?

Okay. What we do at the moment is we started the reassessment of Valhalla. We're not going to talk about details now for down payment, and we're not going to talk about details regarding the numbers because we do a reassessment of that Valhalla lineup. There is going to be a Valhalla. We're going to have the Valhalla with us in the second half of 2023, and it's going to be an amazing car with breathtaking technology. But please accept, I don't want to give these information now because we have to talk with our customers first. So Valhalla at the minute got a redesign. We do, and for sure, probably it's a bit of a different drivetrain than the company thought before. Because with the transformational technology agreement with Mercedes-Benz, there are other chances for us regarding combustion engine. But we still have an electrified powertrain. We still have kind of a hybrid style. We still have really breathtaking technology. But we have to talk with our clients first. And we have to show the new Valhalla, so to speak, to our customers. And we're going to do that over the course of the next three to four months.

From the deposit balance, we don't provide a split of the deposit balance between vehicles. The deposit balance at the end of the year was £269 million and there was a chunk of deposits in there relating to Valhalla.

Okay, thank you.

Thank you. Your final question comes from the line of Horst Schneider calling from Bank of America. Please ask your question.

Yeah, thank you. I have got also a question that relates to your electrification plan. I put the part on the mid-engine. And since you say that you electrify all 2024 product launches, I just want to understand again when you're going to launch the first DBX PHEV and the DB12 Will that also be already offered electrified? And the last question is, when are you going to launch your first BEV?

OK. PHEV DBX platform before 24. But we have to run the adoption of all the Mercedes technology transfers. That needs time, and we are faster than everything I did before in my life. But it needs always time. So by 23, we're going to have that with us. Electric drive, I'm not able to talk openly about that situation at the moment. But it is part of our journey, and it's part of our business plan forward and our product plan for the future. But we should achieve something by the middle of the century. Kind of. That's a bit the ballpark. And I think at that time, that period of time, it's crucial. But never rest. So we are on an engineering journey. We reestablished engineering in that company on a different level. So we talk with a lot of possibilities and we have a lot of things in mind. So we have to finally do that. We have to finally line it up. But we have a clear ambition for 2030, as you saw in our presentation. 90% of the whole powertrain is electrified. We still have probably pure combustion engine for track toys, so to speak, and a mid-engine program that has to be electrified. There is no other way out for the future. So I think it's a very ambitious planning. But I know quite well our segment is moving faster than probably a C segment or a B segment. that segment move faster into the course of electrification, pure electrified cars or electric-driven cars. So there's a lot of things to do for us, but we are on it.

But if I get you right, then the DB11 successor will not yet be electrified initially. They're going to follow later, right?

When we talk about the sports cars, what we have to do, you know, the DB11, the Vantage and the DBS, they are now on the marketplace since a few years. So we need a refresh for these cars. This is what we are doing currently. Do we have a chance to electrify them? This is something what we investigate at the moment. I'm not sure about that because it's a transaxle layout. It's a very specific sports car layout. It's not that easy. I tried to achieve that in my previous life as well. electrified transaxle that's really complicated that's a technical detail but then we come to the next generation when we come ultimate to the next generation yeah for sure it should be a it should be an electric driven car absolutely so we're gonna have a facelift by beginning of end of 22 beginning of 23 for these cars and we still have the same platform with us Talking about electrification, I'm not happy that we don't have any electrification with us, so we're working on that. Do we have a breakthrough? No, we're working on that. But the next generation, there's no way out, should be a bet, absolutely. And this is what we consider.

All right, thank you.

Yeah, you're welcome.

Thank you. There are no further questions, so I'll hand the call back over to the speakers.

Just to say thank you so much for joining us today. Really appreciate your time. Any final words from you, Tobias?

Maybe as a summary, what we did over the last four to six months is a lot of work. We established our program and that program delivers us the results over the year of 2021. We are focused on the full-year results. That's very important to say. We are really focused on the full-year results. Because the whole improvements, what we're going to see in our efficiency program, they come together. As you know, it's always a glide path to achieve the whole level of efficiency. We are ahead of target, absolutely. We are ahead of target in product definition. We are ahead of target with all the efficiency programs. But it's always a glide path. So we are focused on the full-year results. And we're more than confident that we achieve everything what is on our plate, especially the forecast for 24 and 25. And I'm really, that's a conservative forecast. So thank you very much for joining us this morning, and have a great day.