McLaren H1 2019 Results ▪ August 28, 2019
2 | McLaren H1 2019 Results Highlights
3 | McLaren H1 2019 Results Automotive >> Racing >> Applied Technologies H1 2019 Revenue by division Strong positive profit growth momentum in H1 2019 supporting Automotive Track25 investment plans Applied Racing Technologies 11% 4% ◼ H1 2019 Group revenues £698m up 36% versus £511m in H1 2018, driven by Automotive volume growth, Ultimate Series sales and an improvement in Racing results ◼ H1 2019 Reported EBITDA £81m up 553% versus £12m H1 2018 Automotive ◼ H1 2019 LTM Revenue £1,443m as a result of improved Automotive wholesales during H1 85% 2019 Car volumes by region ◼ H1 2019 LTM Reported EBITDA £204m up 50% since FY2018 (£136m) Europe 26% ◼ H1 2019 production delivered 2,640 vehicles in comparison to 2,504 in H1 2018 (5.4% growth) North America Rest of World 48% 5% ◼ Racing recovery continues, with Reported EBITDA improvement in the first half driven by increased prizemoney from finishing 6 th (versus 9 th in 2017) in the Constructors China 4% Championship in 2018 and improved sponsorship revenue APAC, ex. China 17%
4 | McLaren H1 2019 Results Automotive >> Racing >> Applied Technologies H1 2019 ◼ McLaren Automotive continues to deliver strong positive growth in H1 2019 ◼ Vehicle wholesales in H1 2019 totalled 2,335 (2,178 in H1 2018) up 7.2%. 600LT Spider, 720S Spider and McLaren Senna models driving volume ◼ Total committed order book at H1 2019 was 1,925 units with Ultimate Series sold out, Super Series and Sports Series 600LT Spider sold out into Q4, McLaren GT order book building with first orders received following launch in May ◼ New McLaren Ultimate Series vehicle announced with a limited production of 399 cars, commencing in 2020 ◼ Sports and Super Series remain in demand with increasing interest in the new GT series ◼ 476 McLaren Sennas now delivered to customers with remaining vehicles delivered in early Q3 2019 ◼ McLaren currently 4 th in the Formula 1 World Constructors’ Championship at the summer break after 12 races ◼ McLaren announces strategic partnership with Arrow Schmidt Peterson Motorsports (Arrow SPM) and Chevrolet racing as Arrow McLaren Racing SP for a return to IndyCar in the 2020 NTT IndyCar Series
5 | McLaren H1 2019 Results Key Metrics (H1 2018 vs H1 2019) ◼ Revenue (£m) ◼ Net Debt (£m) +36% N.B. Proforma Net Debt represents the position had the new financing completed in July been in place at H1 2019 ◼ EBITDA 1 (£m) ◼ Liquidity (£m) +553% ◼ Wholesale Volume ◼ F1 Championship (Units) points 4 th +7% 6 th Currently 4 th after 12 races 1 Reported EBITDA
6 | McLaren H1 2019 Results Business Update
7 | McLaren H1 2019 Results Automotive
8 | McLaren H1 2019 Results McLaren Automotive – 2019 highlights New GT ▪ order book building with first orders received ▪ following launch in May 600LT Coupe and Spider ▪ Coupe allocation now complete ▪ Spider variant orders into Q4 2019 ▪ 720S Spider ▪ 2019 order book now fully allocated ▪ McLaren Senna ▪ All 500 sold out in advance ▪ 476 delivered at end of H1 2019 ▪ Production complete end of August ▪ McLaren Senna GTR ▪ Commences production in H2 2019; all sold ▪ Speedtail ▪ Pre-production models progressing well - first deliveries in Q1 2020 ▪
9 | McLaren H1 2019 Results Global Volumes - H1 2019 Europe (17%) China (26%) North America +32% 739 114 611 1,125 84 850 APAC +13% RoW (4%) 392 128 123 347 Global wholesale volumes +7% 2,335 ▪ Demand in North America and Asia Pacific markets strong 2,178 ▪ European performance good despite some overall market weakness ▪ China variance due to timing, on place to deliver the same volume as 2018 H1 2018 H1 2019
10 | McLaren H1 2019 Results The new McLaren Ultimate Series ◼ All new Ultimate Series McLaren supercar ◼ Focused on the exhilaration of pure, open-top driving ◼ Limited to 399 examples, the two seat open cockpit roadster offers the purest distillation of road focused driving pleasure and an unrivaled sense of driver connection with the surrounding environment ◼ Designed more for the road than the track with extensive use of carbon fibre will make it the lightest car McLaren has produced, powered by a version of the twin-turbocharged V8 engine currently employed in the McLaren Senna to ensure breath taking performance ◼ Deposits commencing H2 2019
11 | McLaren H1 2019 Results McLaren Special Operations (MSO) MSO is a rapidly growing segment of the Automotive business driving up average selling price and customer appetite across all Series MSO is able to offer the complete tailoring of any McLaren model ▪ MSO Defined This range of series options forms the first of the five tiers of ▪ personalisation offered by MSO, and is offered through McLaren retailers MSO Bespoke MSO Bespoke offers a near limitless level of tailoring to its customers. It ▪ may be a unique exterior paint, or a personalised interior with custom leather and stitching colours or unique carbon fibre customisation Series Models % of cars with MSO content Sports 570S, 570S Spider, 600LT, 600LT Spider >60% Super 720S, 720S Spider >65% Ultimate McLaren Senna >75%
12 | McLaren H1 2019 Results Racing
13 | McLaren H1 2019 Results Formula 1 World Championship Delivering improved performance on track Formula 1 - on track A good first half of season – currently 4 th with 82 points in the constructors championship compared to ▪ 6 th and 52 points in 2018 after 12 races The car remains competitive on track and the gap to the fastest cars lessens during 1 st half of season ▪ Improvements in reliability and operational competitiveness (pit stops / launches / race strategy) have ▪ been realised with further developments to come It was confirmed that Carlos Sainz and Lando Norris will continue as McLaren F1 drivers for the 2020 FIA ▪ Formula 1 season Formula 1- off track Key management positions now filled with a focus on development and improvement of methodologies, ▪ production and digital transformation to further support the forward steps made in 2019 On track improvement coupled with reducing losses from F1 ▪ Revenue targets achieved with more sponsor partnerships than any other F1 team this year, now focussed ▪ on 2020 Sporting environment New F1 financial (cost cap of $175m) and technical regulations for 2021 onwards due to be signed in ▪ October 2019
14 | McLaren H1 2019 Results IndyCar 2020 Arrow McLaren Racing SP IndyCar 2020 McLaren will return in 2020 to IndyCar for the full season ▪ This new venture will give Racing a significant commercial advantage over ▪ other F1 teams, none of which have such a significant racing presence in North America Whilst the commercial opportunities are significant, the cost of competing are ▪ not expected to be material due to the low cost (compared to F1) of competing in IndyCar and the sponsorship arrangements the team already have in place Strategic partnership with Arrow Schmidt Peterson Motorsports (Arrow SPM) ▪ and Chevrolet McLaren last competed in IndyCar in 1979 ▪ The partnership will be named Arrow McLaren Racing SP ▪ The partnership will see the infrastructure of Arrow SPM underpin the team’s ▪ operations McLaren Racing will add the technical expertise, commercial experience and ▪ marketing strength to enable the new entity to perform at the highest competitive level and regularly challenge for wins and the series title
15 | McLaren H1 2019 Results Financials ▪ H1 2019
16 | McLaren H1 2019 Results Results – H1 2019 Revenue (£m) Reported EBITDA (£m) Automotive wholesale volumes 2,335 698 81 511 2,178 12 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Improvement in Automotive Reported All three series - Sports, Super and Revenue growth of 36% as a result of ▪ ▪ ▪ EBITDA H1 2019 driven by Ultimate Series Ultimate - on sale during the first half having the full Series range (Sports, Super and Ultimate) on sale in H1 2019 vs H1 on sale in H1 2019 Order books for Sports Series and Super ▪ 2018 Sale volumes and mix have also Series remain strong with dealer ▪ Racing revenue increased due to higher contributed to the growth in Automotive allocations continuing to reflect customer ▪ Reported EBITDA demand level of prizemoney, reflecting the improved Formula One Constructors’ Racing Reported EBITDA reflects the Strong H1 for deliveries and on track to ▪ ▪ Championship position in 2018 increased revenue versus the prior year deliver a similar number of units to last year
17 | McLaren H1 2019 Results H1 2018 – H1 2019 Reported EBITDA Bridge +553% growth Automotive Reported EBITDA growth driven by strong sales volumes, model mix and regional mix impacts along with all ▪ three series on sale in H1 2019, whereas predominantly only Sports and Super Series on sale in H1 2018 Automotive sales, marketing and administration costs increased as a result of all three series in production and higher ▪ volumes versus prior year Racing Reported EBITDA driven by higher prize money following the improved 2018 Championship result and better than ▪ planned sponsorship revenues Heritage cars negative in reflecting a lower number of heritage car sales in H1 2019 versus prior year ▪
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