Aston Martin Lagonda Global Holdings plc

Good morning, everyone. Thank you very much for joining the Aston Martin Lagonda first quarter 2024 results Q&A call. Only a few weeks ago at our 2023 full year results, we laid out a clear and exciting plan to transition from our previous range of core models to an entirely new and reinvigorated range by the end of 2024. Building on our 111-year history, this new core range, alongside our programme of specials, uniquely positions Aston Martin, transcending the ultra-luxury and high-performance markets, and supports the delivery of our demand-led growth strategy into 2025 and beyond. Performance in the first quarter of 2024 was in line with our expectations and reflects the planned period of transition. Our portfolio transformation remains on track as we cease production and delivery of outgoing core models ahead of the ramp up in production of three new core vehicles this year, in addition to our next ultra exclusive special. Given we remain on track, we are reiterating our 2024 guidance and medium term targets, which importantly includes achieving our targeted inflection point for positive free cash flow generation in the second half of this year. Following the exceptionally strong reception received for DB12, with orders now extending into the fourth quarter of the year, Enthusiasm is building for the new Vantage, upgraded DBX707, and our upcoming V12 flagship sports car, which we also confirmed today. Underpinning our confidence in the new model range is the feedback we're gathering from the extensive media test driving of the new Vantage, which is currently taking place in Seville. This significantly enhanced front engine V8 sports car has achieved positive acclaim for performance, dynamics, exterior styling, and of course, the completely new interior design and infotainment system, our own bespoke technology that will be embedded across our entire range by the end of the year. Driving impressions will be published from the 13th of May, and we're expecting similarly positive reviews to those received for the DB12, which is now a multi-award winning car. As a result of this portfolio transition, and as we guided at the start of the year, we expect the timing of the model launches to drive significant growth in volumes and financial performance in the second half of this year, with the second quarter volumes of financials expected to be broadly similar to those seen in Q1. To support the second half production plans at Gaydon and St Athan, we're preparing the organizations accordingly with recruitment for additional agency manufacturing roles progressing well. We were pleased to make two important announcements during the first quarter. We successfully completed our planned refinancing, securing improved terms on new five-year senior secured notes, following upgrades from leading credit rating agencies. This, along with our existing lenders demonstrating their continued support for a new increased RCF, marked a significant step in strengthening our balance sheet and liquidity position. And finally, we were also delighted to announce that Adrian Hallmark will become our new Chief Executive Officer later in the year. I'm personally looking forward to working with Adrian, who will bring to Aston Martin unrivaled experience in both the ultra luxury and British automotive sectors to further progress our strategy. With that, I'd like to hand back over to the operator so we can start to take some questions. Thank you.

Thank you. If you'd like to ask a question today, please press star followed by one on your telephone keypad now to enter the queue. When preparing to ask a question, please ensure your headset's fully plugged in and unmuted locally. Our first question comes from George Gallios from Goldman Sachs. George, your line is open. Please go ahead.

Good morning, Doug, and thank you for taking my questions. The first question I had was just with respect to how we should see the free cash flow evolving in the second quarter. Obviously, you've given very helpful commentary around how we should see the P&L evolving relative to Q1, but any color on the free cash flow and how confident you are in the liquidity position would be much appreciated. Then the second question I had was whether you could give us any insights into the personalization levels you're seeing on the DB12. I don't know if you have any figures around the percentage uplift versus the base price which you're seeing and how that compares with the prior product. Also, whether you have any ambitions or targets with respect to personalization on the new Vantage. Then finally, just with regards to the DBX, look great to see you've updated the interior there. I think this is something that has been very closely followed by the investment community but interested to know what actions you're taking to relaunch the DBX with consumers and ensures that consumers who maybe have turned down the car in the past due to the interior and or potential new buyers are going to get into showrooms to evaluate and test drive this product. Thank you.