McLaren Q1 2019 Results ▪ May 22, 2019
2 | McLaren FY2018 Results Highlights
3 | McLaren Q1 2019 Results Automotive Racing Applied Technologies Q1 2019 Q1 2019 production delivered 1,289 vehicles delivered in comparison to 1,258 delivered in Q1 ◼ Car volumes by region Revenue by division 2018 (3% growth) Vehicle wholesales in Q1 2019 totalled 953 (1,064 in Q1 2018). Automotive global sales ◼ Applied Technologies volumes impacted by timing of deliveries only but Q1 2019 revenue up 17% versus Q1 Formula 1 6% North 2018 and on track for full year 12% America Europe 34% 36% Order book demand remains good with Ultimate Series sold out, Super Series orders ◼ taken into Q3 2019 and with Sports Series 600LT Coupe sold out into Q4 and 600LT Spider orders for delivery into Q3 2019; total order book 1,855 units Racing EBITDA improvement in the quarter driven predominantly by the increase in ◼ prizemoney from finishing 6 th in the Constructors Championship in 2018 Rest of World APAC, ex. Automotive 4% China China Q1 2019 Group revenues £284m (Q1 2018 £241m) driven by Automotive mix and Racing 82% ◼ 4% 22% prize money. Q1 2019 LTM EBITDA £150m ◼
4 | McLaren Q1 2019 Results Automotive Applied Technologies Racing Q1 2019 McLaren surpasses the 20,000 th car hand- assembled at the McLaren Production Centre (“MPC”) in Woking, Surrey ◼ McLaren GT announced - superlight Grand Touring ◼ 371 McLaren Sennas now delivered to customers. The first McLaren 600LT Spiders and 720S Spiders delivered to customers ◼ during the quarter McLaren currently 4 th in the Formula 1 World Constructors’ Championship. Revenue and sponsor partnerships on plan ◼ New Racing leadership team now in place ◼ New CEO of McLaren Applied Technologies, Anthony Murray, has started and Paul Buddin confirmed as Group CFO on a full time ◼ basis
5 | McLaren Q1 2019 Results Business Update
6 | McLaren Q1 2019 Results Automotive
7 | McLaren Q1 2019 Results McLaren Production – 20,000 th car built ◼ McLaren Automotive celebrates its 20,000th car to be hand-assembled at the McLaren Production Centre (MPC) in Woking, Surrey ◼ The latest milestone represents yet another significant achievement coming eight years after the first McLaren road car left the MPC in July 2011 McLaren Automotive production volumes (cumulative) 20,000 18,289 13,426 10,097 6,798 5,198 3,517 2,103 550 2011 2012 2013 2014 2015 2016 2017 2018 May 2019
8 | McLaren Q1 2019 Results McLaren GT - Superlight Grand Touring ◼ The superlight new McLaren GT challenges the conventions of the Grand Tourer category ◼ To be positioned alongside the established Sports, Super and Ultimate Series ◼ A new McLaren for a new audience in an expanding market segment ◼ The fourth new model introduced in the McLaren Track25 business plan announced in July 2018
9 | McLaren Q1 2019 Results McLaren Automotive – Q1 production highlights ▪ McLaren 600LT Coupe and Spider ▪ All production slots for Coupe full ▪ Strong order book for Spider variant extending into H2 2019 ▪ McLaren 720S Spider ▪ H1 2019 sold out ▪ Order book extends into H2 2019 ▪ McLaren Senna ▪ 371 delivered to date ▪ All 500 sold out in advance
10 | McLaren Q1 2019 Results Global Volumes - Q1 2019 Europe – (12%) China – 33% North America – (20%) 390 343 36 27 401 321 RoW – (49%) APAC – 27% 78 40 213 168 Demand in all markets strong ▪ North America and Europe wholesale volume variances purely due to delivery ▪ timing RoW declined due to a weaker middle east regional economic conditions, as ▪ reported at the end of 2018
11 | McLaren Q1 2019 Results Racing
12 | McLaren Q1 2019 Results Formula 1 World Championship A good step forward – but work to do Formula 1 - on track Good pre-season preparation was followed by 4,000 km’s of track testing - a 46% increase on prior ▪ year The car is more competitive on track this year and the gap to the fastest cars has been reduced ▪ Clear improvements in reliability and operational competitiveness (pit stops / launches / race strategy) ▪ are also visible The new driver pairing of Carlos Sainz and Lando Norris both settling into the team well, showing a ▪ promising start to the season The team currently sits in 4 th place (of 10 competitors) in the Constructors Championship after 5 races ▪ in 2019 Andreas Seidl and James Key have now taken up their positions ▪ Formula 1- off track Following improved on track competitiveness the team has continued to build the commercial ▪ partnerships with new agreements signed including BAT, Huski Chocolate, Coca-Cola, Dell Estrella Galicia and Arrow Electronics
13 | McLaren Q1 2019 Results The Sporting Environment The Sporting Environment We support the aims and intentions of the Commercial Rights Holder (Formula One ▪ Group) and the regulating body the FIA. We are working very closely with both parties to help provide a more sustainable Formula 1 business model The introduction of a cost cap and redistributed revenue model is welcomed and we are ▪ preparing our future business plans on this basis on the assumption that written confirmation of these changes are confirmed during 2019 ahead of the last year of our commercial agreement with the sport in 2020 Formula 1 and motor racing have been core to our business for decades and have ▪ contributed to our brand, our capability and our technology The new era of Formula 1 provides an exciting opportunity to make a number of ▪ changes to the sport to enhance its position as the pinnacle of motorsport and the commercial framework to grow value for commercial rights holder and the teams We would expect to be reducing our cost base in F1 over the next 4 years at the same ▪ time as becoming more competitive on and off the track We expect the new regulations to be confirmed before the end of the Formula One ▪ season
14 | McLaren Q1 2019 Results Applied Technologies
15 | McLaren Q1 2019 Results McLaren Applied Technologies – in pursuit of advantage Automotive Motorsport Automotive Public Transport Health 3rd Generation Standard ECU ▪ Autonomous vehicle ▪ LNER passenger Wearable digital ▪ ▪ for F1 performing as expected partnership development reservation system orthopedic device in all cars for the 2019 season programme has been installed, now live development progresses formally extended to work 2nd Generation Formula E ▪ Virgin Trains West Coast’s Health analytics platform ▪ ▪ on the next phase batteries performing well and is showing strong new WIFI solution going in line with expectations Development of the Motor ▪ live in May interest, with the “Born Control Unit for the On-going development of F1 ▪ in Bradford” research Singapore proof of concept ▪ McLaren Speedtail data visualisation tool ‘Atlas study signing up for a opportunities on condition continues 10’ collaborative study based maintenance are in development Q1 2019 Revenue (£m) McLaren Applied Technologies announces new CEO 16 In Q1 Anthony Murray has now joined McLaren Applied Technologies from Qualcomm. Anthony has a ▪ 15 strong background in building and scaling small to large businesses in highly relevant industry sectors and product sets, ranging from automotive, consumer electronics and health Q1 2018 Q1 2019
16 | McLaren Q1 2019 Results Financials ▪ Q1 2019
17 | McLaren Q1 2019 Results Results – Q1 2019 Revenue (£m) EBITDA (£m) Automotive wholesale volumes 284 22 1,064 953 241 8 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Improvement in Automotive EBITDA Q1 2019 All three series - Sports, Super and Ultimate - Revenue growth of 17% as a result of having ▪ ▪ ▪ driven by Ultimate Series on sale in Q1 2019 on sale during the quarter for the first time the full Series range (Sports, Super and Ultimate) on sale in Q1 2019 vs Q1 2018 Racing EBITDA reflects the increased revenue Order books for Sports Series and Super ▪ ▪ Racing revenue increased due to higher level versus the prior year and favourable Series remain strong with dealer allocations ▪ of prizemoney, reflecting the improved movement in Heritage car sales continuing to reflect customer demand Formula One Constructors’ Championship Small volume variance a result of the timing ▪ position in 2018 of deliveries only – still on track to deliver around 4,800 units by the end of the year
18 | McLaren Q1 2019 Results Q1 2018 – Q1 2019 EBITDA Bridge +176% growth Racing EBITDA driven by higher prize money following the improved 2018 Championship result ▪ Automotive EBITDA growth driven by having all three series on sale in Q1 2019, whereas only Sports and Super Series on ▪ sale in Q1 2018 Heritage cars positive in quarter reflecting timing on sales versus prior year ▪
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