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 6% Formula 1 North
2018 and on track for full year 12%
Europe America
36% 34%
◼ 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 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 Racing Applied Technologies

Q1 2019

◼ 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
5 | McLaren Q1 2019 Results

Business Update
6 | McLaren Q1 2019 Results

Automotive
7 | McLaren Q1 2019 Results

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
McLaren Automotive production volumes
(cumulative)
20,000
18,289
13,426
10,097
5,198 6,798
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
401 27
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

Motorsport Automotive
Automotive Public Transport Health

▪ 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’
▪ Autonomous vehicle
partnership development
programme has been
formally extended to work
on the next phase
▪ Development of the Motor
Control Unit for the
McLaren Speedtail
continues
▪ 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

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

284
22
1,064
953

241
8

Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019

▪ 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
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
19 | McLaren Q1 2019 Results

Net Debt & Liquidity

▪ Gross debt reflects $250m and £370m 5-yr
Q1 2019 Senior Secured Notes issuance in July 2017

Gross debt1 552 ▪ During April, additional overdraft facilities

under the RCF were increased to the full
Cash and cash equivalents (29) available permitted credit facility amount of
£110m of which £97m is now available for
liquidity purposes
Underlying net debt1 523
▪ Cash utilisation due to investment in new
Net Leverage / EBITDA2 3.50x 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
Undrawn committed liquidity and
87
overdraft lines3 ▪ Although Capex investment is higher in Q1
2019 we expect the full year Capex
investment to be in line with last year
Total available liquidity 116

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)
20 | McLaren Q1 2019 Results

Appendix
21 | McLaren Q1 2019 Results

Group Overview
22 | McLaren Q1 2019 Results

Summary Income Statement

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

2 Includes FX on translation of USD bond
23 | McLaren Q1 2019 Results

Group Cash Flow Statement

▪ Financing activities include £49.3m of investment from Nidala that was paid ahead of schedule
24 | McLaren Q1 2019 Results

EBITDA by company

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

One Outstanding Luxury Automotive & Technology Group

Automotive Racing Applied Technologies

◼ Delivering advantage at the intersection of physical

◼ Offering the ultimate ownership experience ◼ Legendary racing history
and digital
creating the iconic sportscar ◼ 20 Formula 1 World Championships
◼ Customers in Motorsport, Automotive, Public
◼ 20,000+ road cars hand-assembled to date Transport and Health

Highlights Sales and car volume split

Revenue by division Car volumes by region
◼ Global leader in high-performance luxury and technology offering the
ultimate ownership experience Applied North
Formula 1 Europe
Technologies 11% America
33%
◼ 55 year history of innovation and technical excellence 5% 36%

◼ Group revenue and cash generation underpinned by Automotive order

book and production capacity now demonstrated
Rest of
◼ Latest McLaren models 600LT Spider, 720S Spider, McLaren GT and Automotive World APAC,
84% China ex. China
“Speedtail” continue to demonstrate the success of McLaren product 6%
7% 18%
pipeline + strength in brand
26 | McLaren Q1 2019 Results

McLaren has a long history rooted in Racing & Innovation

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

27 | McLaren Q1 2019 Results

McLaren has a long history in Racing & innovation ▪

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

28 | McLaren Q1 2019 Results

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

12C P1 650S 675LT 570S 720S

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

2012 2013 2015 2016 2016 2017

Dewar Trophy for Outstanding British Best
Ranked #1 in car reviews of 2012 EVO Middle East Car of the Year: Five Star Award
Technical Achievement China Performance Car of the Year Performance Car
Jalopnik Supercar of the Year 675LT Coupé AUTOCAR & EVO
Royal Automobile Club Auto Express New Cars Awards
& Evo2012 2013 2014 2016 2015 2017

James May’s Car of the Year Jeremy Clarkson’s Car of the Year Supercar of the Year Car of the Year Best Car on Sale – Best Every Day Supercar Performance Car of the Year
BBC Top Gear Magazine BBC Top Gear Magazine AUTOCAR ASEAN CAR Magazine (675LT Spider) BBC Top Gear BBC Top Gear & Road and Track

2012 2013 2014 2016 2016 2017

Best Sports Car Over £120,000 Hypercar of the Year Performance Car of the Year Hardcore Car of the Year: Best Car on Sale Super Car of the Year
What Car? BBC Top Gear Magazine Auto Express Top Gear (675LT Spider AUTOCAR Octane & EVO

2012 2013 2014 2016 2017

Hypercar of Middle East Car
Car of the Year Best of the Best Sport Car of the Year
the Year of the Year Awards
Middle East Motor Awards Red Dot Design Award CAR Magazine
GQ Best Supercar

Every model won multiple prestigious awards for unique technology and design
29 | McLaren Q1 2019 Results
Automotive operates in distinct segments
Sports
▪ Brings McLaren’s advanced
technologies to the
sportscar arena, a lower
Description price point
▪ Derivatives include Coupe,
Spider, LT limited editions
▪ 540C, 570S, 570S Spider,
Models 570GT, 600LT, 600LT Spider
▪ Best power-to-weight ratio of
sports car range in their class
Features ▪ Lightweight construction with
carbon chassis (75kg)
Purpose ▪ Road
Price range ▪ £125-200k
MSO1
✓ Bespoke customisation options
✓ Limited editions and one-off models
1 McLaren Special Operations
Grand Tourer Super
▪ Positioned alongside our ▪ Super Series is the core of
established Sports, Super and McLaren's range with the
Ultimate Series, this is a new best technology available
McLaren for a new audience
providing an alternative to
▪ Derivatives include Coupe,
existing products Spider and LT limited
editions
▪ McLaren GT ▪ 650S, 650S Spider, 720S,
720S Spider
▪ Attributes of competition ▪ High performance super
levels of performance and cars with track
continent crossing capability,
performance
yet lighter, faster, more
engaging ▪ MonoCage II carbon body
▪ Luxury Grand Touring ▪ Road / track
▪ >£160k ▪ £200-300k
Experiences
✓ Pure McLaren track experience
✓ Pure GT racing series
✓ Lifestyle and heritage
Ultimate
▪ High performance cars
▪ Built on the same basis as
the Super series with
additional ground-breaking
technology
▪ Further track-only products
offers
▪ P1 & GTR, McLaren Senna,
Senna GTR, Speedtail
▪ Includes the first hybrid
hyper car in the world
▪ Strictly limited production,
sold out years in advance
▪ Road / track
▪ >£500k
✓ Expert advice and support
✓ Unique service cover
Motorsport
▪ Track cars built for racing
▪ Based on road car models
but without road car
regulations and built to a
racing specification
▪ 650S GT3, 570S GT4 and
570S Sprint, 720S GT3
▪ Strictly limited editions for
racing only
▪ Track
▪ £200-400k
Ownership