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McLaren Q1 2019 Results

▪May 22, 2019

Highlights

2 | McLaren FY2018 Results

3 | McLaren Q1 2019 Results

◼ Q1 2019 production delivered 1,289 vehicles delivered in comparison to 1,258 delivered in Q1

2018 (3% growth)

◼ Vehicle wholesales in Q1 2019 totalled 953 (1,064 in Q1 2018). Automotive global sales

volumes impacted by timing of deliveries only but Q1 2019 revenue up 17% versus Q1

2018 and on track for full year

◼ 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 6th in the Constructors Championship in 2018

◼ Q1 2019 Group revenues £284m (Q1 2018 £241m) driven by Automotive mix and Racing

prize money.

◼ Q1 2019 LTM EBITDA £150m

Q1 2019

Automotive Racing Applied Technologies

Revenue by division Car volumes by region

Formula 112%

Automotive82%

Applied Technologies6% North

America34%

APAC, ex. China22%

China4%

Rest of World4%

Europe36%


◼ McLaren surpasses the 20,000th 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 4th 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

Q1 2019


Business Update


Automotive


McLaren Production – 20,000th 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

5502,103

3,5175,198 6,798

10,097

13,426

18,28920,000

2011 2012 2013 2014 2015 2016 2017 2018 May2019

McLaren Automotive production volumes(cumulative)

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

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

Global Volumes - Q1 2019


North America – (20%) China – 33%

Europe – (12%)

APAC – 27%

RoW – (49%)

▪ 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

27 36

168 213

78 40

390 343

401

321

Racing


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 prioryear

▪ 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 apromising start to the season

▪ The team currently sits in 4th place (of 10 competitors) in the Constructors Championship after 5 racesin 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 commercialpartnerships with new agreements signed including BAT, Huski Chocolate, Coca-Cola, Dell Estrella Galiciaand Arrow Electronics

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

Applied Technologies


McLaren Applied Technologies – in pursuit of advantage


McLaren Applied Technologies announces new CEO

Motorsport AutomotiveAutomotive Public Transport Health

Q1 2019 Revenue (£m)

▪ 3rd Generation Standard ECU for F1 performing as expected in all cars for the 2019 season

▪ 2nd Generation Formula E batteries performing well and in line with expectations

▪ On-going development of F1 data visualisation tool ‘Atlas 10’

▪ LNER passenger reservation system installed, now live

▪ Virgin Trains West Coast’s new WIFI solution going live in May

▪ Singapore proof of concept opportunities on condition based maintenance are in development

▪ Wearable digital orthopedic device development progresses

▪ Health analytics platform is showing strong interest, with the “Born in Bradford” research study signing up for a collaborative study

▪ Autonomous vehicle partnership development programme has been formally extended to work on the next phase

▪ Development of the Motor Control Unit for the McLaren Speedtailcontinues

▪ In Q1 Anthony Murray has now joined McLaren Applied Technologies from Qualcomm. Anthony has a 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

15 16

Q1 2018 Q1 2019

Financials


▪ Q1 2019

Results – Q1 2019


Automotive wholesale volumes Revenue (£m) EBITDA (£m)

▪ All three series - Sports, Super and Ultimate -on sale during the quarter for the first time

▪ Order books for Sports Series and Super Series remain strong with dealer allocations continuing to reflect customer demand

▪ Small volume variance a result of the timing of deliveries only – still on track to deliver around 4,800 units by the end of the year

▪ Revenue growth of 17% as a result of having the full Series range (Sports, Super and Ultimate) on sale in Q1 2019 vs Q1 2018

▪ Racing revenue increased due to higher level of prizemoney, reflecting the improved Formula One Constructors’ Championship position in 2018

▪ Improvement in Automotive EBITDA Q1 2019 driven by Ultimate Series on sale in Q1 2019

▪ Racing EBITDA reflects the increased revenue versus the prior year and favourable movement in Heritage car sales

1,064

953

Q1 2018 Q1 2019

241

284

Q1 2018 Q1 2019

8

22

Q1 2018 Q1 2019

Q1 2018 – Q1 2019 EBITDA Bridge


▪ 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

+176% growth

Net Debt & Liquidity


Q1 2019

Gross debt1 552

Cash and cash equivalents (29)

Underlying net debt1 523

Net Leverage / EBITDA2 3.50x

Undrawn committed liquidity and overdraft lines3 87

Total available liquidity 116

▪ Gross debt reflects $250m and £370m 5-yr Senior Secured Notes issuance in July 2017

▪ During April, additional overdraft facilities under the RCF were increased to the full available permitted credit facility amount of £110m of which £97m is now available for liquidity purposes

▪ Cash utilisation due to investment in new models (720S Spider, 600LT Spider, McLaren GT and Speedtail) and the development of the Formula 1 car for 2019 season

▪ The shape of cash flow in 2019 expected to mirror 2018 cash flows

▪ Although Capex investment is higher in Q1 2019 we expect the full year Capex investment to be in line with last year

Senior Secured Notes (SSNs) outstanding of £564m plus £5m accrued interest. The SSNs includes £15m capitalised fees and revaluation FX gain £2m

2 Net Leverage includes reported gross debt £552m less cash of £29m and LTM EBITDA of £150m 3 Consists of RCF £100m less committed drawn Ancillary Lines (bank guarantees)

Appendix


Group Overview


Summary Income Statement

1 Includes FX gains and losses apart from FX on translation of USD bond2 Includes FX on translation of USD bond


Group Cash Flow Statement


▪ Financing activities include £49.3m of investment from Nidala that was paid ahead of schedule

EBITDA by company


*Racing includes the sale of heritage cars, £3.7m (Q1 2019) and £0.4m (Q1 2018)

One Outstanding Luxury Automotive & Technology Group


Sales and car volume split

◼ Global leader in high-performance luxury and technology offering the

ultimate ownership experience

◼ 55 year history of innovation and technical excellence

◼ Group revenue and cash generation underpinned by Automotive order

book and production capacity now demonstrated

◼ Latest McLaren models 600LT Spider, 720S Spider, McLaren GT and

“Speedtail” continue to demonstrate the success of McLaren product

pipeline + strength in brand

Highlights


◼ Offering the ultimate ownership experience

creating the iconic sportscar

◼ 20,000+ road cars hand-assembled to date

◼ Legendary racing history

◼ 20 Formula 1 World Championships

◼ Delivering advantage at the intersection of physical

and digital

◼ Customers in Motorsport, Automotive, Public

Transport and Health

Revenue by division Car volumes by region

North America

36%

APAC, ex. China

18%

China7%

Rest of World

6%

Europe33%

Formula 111%

Automotive84%

Applied Technologies

5%

McLaren has a long history rooted in Racing & Innovation


Success in racing created a culture of outstanding performance, excellence and innovation

McLaren has a long history in Racing & innovation


Success in racing created a culture of outstanding performance, excellence & innovation

▪

▪

▪

▪

▪

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Globally recognized brand


World-class car platform built on a foundation of racing success

Successful racing performance led to a culture of innovation & excellence, enabling success in cars

The only company to win each of the 4 classic competitions: Formula One, Le Mans, Indianapolis and Can-Am

Every model won multiple prestigious awards for unique technology and design

2012 2013 2015 2016 2016 2017

Ranked #1 in car reviews of 2012Jalopnik

Dewar Trophy for Outstanding British Technical AchievementRoyal Automobile Club

China Performance Car of the YearEVO Middle East Car of the Year:

Supercar of the Year 675LT Coupé

BestPerformance Car

Auto Express New Cars Awards

Five Star AwardAUTOCAR & EVO

& Evo2012 2013 2014 2016 2015 2017

James May’s Car of the YearBBC Top Gear Magazine

Jeremy Clarkson’s Car of the YearBBC Top Gear Magazine

Supercar of the YearAUTOCAR ASEAN

Car of the YearCAR Magazine (675LT Spider)

Best Car on Sale – Best Every Day SupercarBBC Top Gear

Performance Car of the YearBBC Top Gear & Road and Track

2012 2013 2014 2016 2016 2017

Best Sports Car Over £120,000What Car?

Hypercar of the YearBBC Top Gear Magazine

Performance Car of the YearAuto Express

Hardcore Car of the Year:Top Gear (675LT Spider

Best Car on SaleAUTOCAR

Super Car of the YearOctane & EVO

2012 2013 2014 2016 2017

Car of the YearMiddle East Motor Awards

Hypercar ofthe Year

GQ

Middle East Carof the Year Awards

Best Supercar

Best of the BestRed Dot Design Award

Sport Car of the YearCAR Magazine

12C P1 650S 675LT 570S 720S

Launched year: 2011 Launched year: 2013 Launched year: 2014 Launched year: 2015 Launched year: 2015 Launched year: 2017

Automotive operates in distinct segments29 | McLaren Q1 2019 Results

SuperSports MotorsportUltimate

▪ Super Series is the core of

McLaren's range with the

best technology available

▪ Derivatives include Coupe,

Spider and LT limited

editions

▪ Brings McLaren’s advanced

technologies to the

sportscar arena, a lower

price point

▪ Derivatives include Coupe,

Spider, LT limited editions

▪ Track cars built for racing

▪ Based on road car models

but without road car

regulations and built to a

racing specification

▪ High performance cars

▪ Built on the same basis as

the Super series with

additional ground-breaking

technology

▪ Further track-only products

offers

▪ 650S, 650S Spider, 720S,

720S Spider

▪ 540C, 570S, 570S Spider,

570GT, 600LT, 600LT Spider

▪ 650S GT3, 570S GT4 and

570S Sprint, 720S GT3

▪ P1 & GTR, McLaren Senna,

Senna GTR, Speedtail

▪ High performance super

cars with track

performance

▪ MonoCage II carbon body

▪ Best power-to-weight ratio of

sports car range in their class

▪ Lightweight construction with

carbon chassis (75kg)

▪ Strictly limited editions for

racing only

▪ Includes the first hybrid

hyper car in the world

▪ Strictly limited production,

sold out years in advance

Description

Models

Features

Purpose

Price range

▪ Road / track▪ Road ▪ Track▪ Road / track

▪ £200-300k▪ £125-200k ▪ £200-400k▪ >£500k

✓ Bespoke customisation options✓ Limited editions and one-off models

✓ Pure McLaren track experience✓ Pure GT racing series✓ Lifestyle and heritage

✓ Expert advice and support✓ Unique service cover

MSO1 Experiences Ownership

1 McLaren Special Operations

Grand Tourer

▪ Positioned alongside our

established Sports, Super and

Ultimate Series, this is a new

McLaren for a new audience

providing an alternative to

existing products

▪ McLaren GT

▪ Attributes of competition

levels of performance and

continent crossing capability,

yet lighter, faster, more

engaging

▪ Luxury Grand Touring

▪ >£160k

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