Andy Palmer CEO Aston Martin The Reinvention of Aston Martin
Dr. Andy Palmer Chief Executive Officer
May 2015
3 Reinvention of Aston Martin as a luxury Brand that makes automobiles
Voted UK’s coolest brand 5 times since 2006 (CoolBrands®)
Reputation Products People Culture Image
Our identity. Our passion. Power Beauty Soul
4 Luxury market growth is expected to continue; moving to BRIC markets
Global HNWI Growth Location of HNWI Individuals (CapGemini LocationsGlobal Wealth Report of HNWIExtrapolated)Locations of HNWI (Millions) (CapGemini Lorenz Curve Analysis) 35
30
25
20 2000 2050
15 The population of HNWIs has 10 the potential to double by 2050 5 Africa MiddleAfrica East Middle East 0 Latin America EuropeLatin America Europe
Asia-Pacific NorthAsia-Pacific America North America
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Luxury Cars Market Trend (€B) • Luxury car market projected to post solid growth, driven by “high-end" segment and emerging markets (Bain & Co Global Luxury Goods Worldwide Market Study) - Especially Brazil, India, Middle East and China where luxury cars are still perceived as "social enablers" 351 319 • 360° customization trend: from product to services 280 299 - Customers are choosing to customise their vehicles doubling or even +10% tripling the basic price tag +6% - Personalisation extended also to financing structure and after-sales +7% services • Super luxury SUVs as a new emerging segment in which several high-end carmakers will compete in the coming years 2011 2012 2013 2014E • Connectivity and ergonomics as "the two hot topics" in the industry
5 Our ‘Second Century Plan’ is targeted towards ensuring our sustainability as a luxury business
Second Century Plan
Phase 1: Stabilisation
Phase 2 Core Strengthening
Phase 3 Portfolio Expansion
Sustainable Luxury Business
6 Exclusive luxury cars will remain at our core; new luxury models will ensure sustainability
Power Beauty Soul
Sports Sedan Sports Cars X-Over GT Next generation of 4- Renewal of sports car Athletic and door sports sedan to range with iconic cars dynamic GT with compete with Rolls- with unmistakable increased usability Royce / Bentley design and increased targeting female To be funded from visual differentiation HNWIs future cash-flows between products
3-Pillar Portfolio Strategy
7 Aston Martin: A Sustainable Luxury Business
‘HOSHIN KANRI’ (Policy Deployment)
Inspiring Customer Replacement of current product portfolio with new competitive luxury Focused Product products focused on a diverse global customer base
Strengthened Global Power Beauty Soul will be recognised internationally as defining Brand & Sales Power Aston Martin luxury; driving the business and global sales growth
Leadership in Cost Sustainability depends on robust cost control, ensuring value add is Control in everything we do
The foundation of being a great brand is in the quality of everything Enhanced Quality we do – product quality, service excellence, customer experience
Passionate and The culture of the team that is the Aston Martin family – employees, Professional People our dealers and brand partners defines Aston Martin
Ensure delivery of the vision through funding activities, delivering Financing & Funding sustainable positive cash flow after 2017
8 Aston Martin and ‘The Art of Living’
Exclusive yet visible Brand Exclusivity High-end dealer showrooms with equivalent luxury experience Money can’t buy experiences
Design leadership: assertive, distinctive style Sensory superiority: materials, craftsmanship & sound quality Product Desirability Competitive performance, technology and feature specification Bespoke products & personalisation via Q by Aston Martin
Average Selling Price (£k/unit) An increase in Average Selling Price of 63% since 2007 114 9 70 Proven Pricing Power Ability of halo products to command ultra-high prices +63% Strong second-hand values of halo products and classics 2007 2008 2009 2010 2011 2012 2013 2014 Knowing Our Customers
New Luxury Customers Cultivating Relationships
Sophisticated engine supporting cultivation of long-term 1:1 relationships
Salesforce engaged as our system partner
Personal Experiences Exclusive Club
Omotenashi: every encounter single and Private club unique membership for Anticipating needs; VVIPs exceeding expectations
10 Consistency: Luxury is now beyond the product
11 End-to-End Customisation: The luxury business versus the mass market
LUXURY MARKET MASS MARKET Detailed and bespoke product specification and ordering ‘One Click to Buy’ process ‘Omotenashi’; there when you need; anticipate needs Self-service; algorithmic purchase suggestions and wants Collections; caretaking for future generations; Disposable; always something new coming along; in- provenance built obsolescence Direct relationship with the company; access to the CEO Out-sourced and off-shored customer call centres; on- line FAQs Visit the factory/workshop; meet the craftsmen and Made in [?]; automated mass production women Surprise gifts, social events; previews and exclusive Loyalty schemes – collecting points and coupons access Attractiveness of a compelling and relevant story Same
12 Dealers remain essential interface with customers
Network of 155 dealerships world-wide : Presence where the customers are, consistent experience
Dealer network has expanded 2.5x since 2000
70% of our dealer partners have been with us for over 20 years
Our longest relationship extends almost 65 years
Future: Dealer partners not only investing in facilities, but also service, personalisation and customer relationships
13 The Reinvention of Aston Martin
Continue to position Aston Martin as a luxury brand that makes beautiful cars
Ensure relevance for a new generation of HNW customers
Satisfy demand for experiences as well as product – wherever our customers are
Our dealer partners remain an essential enabler to delivering end-to-end service excellence and personalisation
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