Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Investor Day (June 2023)
120 slides from Tata Motors Passenger Vehicles's investor day presentation, Jun 7, 2023
Slide 1: Tata Motors India Investor Day 2023
Tata Motors India Investor Day 2023 June 7, 2023
Slide 2: Safe harbour statement
Safe harbour statement Statements in this presentation describing the objectives, projections, estimates and expectations of Tata Motors Limited (the “Group”) and its business segments may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual result
Slide 3: Agenda
Agenda From To Duration Schedule Speaker (mins) 9:00 am 9:30 am 00:30 Registration, breakfast, activities 9:30 am 9:35 am 00:05 Welcome address 9:35 am 10:30 am 00:55 Winning Sustainably in PV and Proactively in EV Mr. Shailesh Chandra, MD, TMPVL and TPEML 10:30 am 10:45 am 00:15 Q&A on PV and EV 10
Slide 4: Winning Sustainably in PV and Proactively in EV
Winning Sustainably in PV and Proactively in EV Shailesh Chandra Managing Director Tata Motors Passenger Vehicles Limited Tata Passenger Electric Mobility Limited
Slide 5: TMPV & TPEM have been on a sharp growth trajectory
TMPV & TPEM have been on a sharp growth trajectory Both businesses have achieved “lifetime highs” across operational and financial metrics Lifetime High Volume & Significant Lifetime High Revenue Lifetime high EBITDA improvement in MS 3,085 Volume Market Share 47,868 800 16. 00% ‘000 Units 13.9% Rs.
Slide 6: Pillars of our success
Pillars of our success Our success is built on a strong set of initiatives EV Network & Aspirational Product Front-end Ecosystem Portfolio Reimagination Development Operational Product Quality Debottlenecking Enhancement 6
Slide 7: Aspirational product portfolio
Aspirational product portfolio Our portfolio has been reimagined with design, safety and technology as core tenets World class design Best in class Safety New Technologies • Continuous evolution of new age • Upgrade passive / active safety attributes • Modern, intelligent & integrated IMPACT-ful des
Slide 8: “New Forever” interventions keep our portfolio fresh
“New Forever” interventions keep our portfolio fresh Variants and special editions to sustain interest and address new microsegments of customers # Dark range driving premiumization of the portfolio ( Harrier, Nexon, Altroz and Nexon EV) #DARK edition: Advanced features and ADAS Tiago NRG: Keeping t
Slide 9: Reimagined products have given us holistic growth
Reimagined products have given us holistic growth We have achieved podium finish in nearly all segments that we play in Compact SUV High SUV Mid Hatch FY20 FY23 FY20 FY23 FY20 YTD’23 Nexon & Harrier & Tiago 15.4% 21.8% 12.3% Punch 35.2% 26% Safari 28.8% #4 Rank #2 #3 Rank #1 #2 Rank #2 Premium Hatch
Slide 10: Widest product portfolio in EVs
Widest product portfolio in EVs Our EV models are #1 in each of their segments, with a strong value proposition Mid Hatch Entry Sedan Compact SUV Tiago.ev Xpres-T, Tigor EV Nexon EV 10,000 bookings in 1 day Dominant share in fleets 50,000+ EVs delivered Delivered 10,000 cars in 4 months Pi
Slide 11: Tiago.ev is growing the market for EVs in India
Tiago.ev is growing the market for EVs in India Tiago.ev is taking EVs to smaller towns and bringing in new customer segments Expanding Geographic Markets Appealing to New Segments City-wise Contribution to Bookings 23% first time car buyers: Directly buying EV without owning a car before 37% 49% Re
Slide 12: EV network and ecosystem
EV network and ecosystem Our wide EV network in India and the Tata uniEVerse ecosystem supported our growth Widest EV network in India Tata Ecosystem Advantage # Cities 165 Charging Infrastructure - Tata Power 1. 5000+ public chargers 75 51 2. Home Charging in 170+ cities 3. 900+ Community/RWA charg
Slide 13: Front-end Reimagination (1/2)
Front-end Reimagination (1/2) Front-end reimagination drove sharp focus on micro-markets, network growth & customer experience improvement Tailored initiatives for top 20 Network growth & After-Sales micro-markets profitability re-imagination # Sales Outlets # Service Outlets 855 1,410 653 806 FY20
Slide 14: Front-end Reimagination (2/2)
Front-end Reimagination (2/2) Front-end reimagination drove sharp focus on micro-markets, network growth & customer experience improvement Hyperlocal & digital marketing to drive greater Customer Experience Re-imagination aspiration • Continued sponsorship of IPL to drive strong brand awareness • Cr
Slide 15: Operational debottlenecking through multiple levers
Operational debottlenecking through multiple levers Manufacturing capacity scaled up nearly 3x through interventions at the plant and at vendor end Manufacturing Capacity / Month (‘000 units) Capacity scale-up driven by: • Agile debottlenecking of model-specific capacities (e.g., Nexon) 60 • Supplie
Slide 16: Manufacturing capacity enhancement
Manufacturing capacity enhancement Capacity enhancement to ~ 1 million units per annum to support our growth aspirations Annual production capacity (’000 units) Salient features Smart scalable factory with layout to expand Excellent infrastructure Flexible between Sanand 2 Plant – Total Capacity TMP
Slide 17: Quality and cost improvements across products
Quality and cost improvements across products Focused efforts to improve quality and cost efficiency JD Power Initial Quality Survey 2022 Cost Reduction Achieved #1 #2 FY20 FY21 FY22 FY23 Focus on quality improvements, driven by Structured cost reduction program in place: • Continual thrust on “Stop
Slide 18: Key trends in the Indian automotive industry
Key trends in the Indian automotive industry Indian automotive industry is undergoing a transformative shift Key Trends Implications for the Industry • Focus on aspirational features and technology Customers • Growing environmental consciousness • Increasing preference for SUVs & premium vehicles 1.
Slide 19: TMPV & TPEM Strategic Pillars
TMPV & TPEM Strategic Pillars Our strategy is well-aligned to key industry trends Strategic Pillars for TMPV & TPEM 1 Leverage aspirational portfolio, including alternate powertrains to capitalize on segment shifts and regulations 2 Proactively grow the EV market in India and maintain market leade
Slide 20: Product portfolio well-aligned to market developments
1 Product portfolio well-aligned to market developments Aspirational product portfolio with focus on SUVs, safety and technology Curvv Sierra Avinya New Nameplate Additions Mid Cycle Enhancements to refresh products Special Edition & 6 airbags ADAS and Engine Safety Feature Upgrades BNCAP connectivi
Slide 21: Comprehensive powertrain portfolio
1 Comprehensive powertrain portfolio Unique advantage of strong products in Petrol, Diesel and CNG Petrol Diesel CNG • Widest portfolio of EVs • Strong products with Diesel • Strong product line-up in CNG Powertrain • Strong pipeline of EV products • Expansion of CNG portfolio planned • Continued pl
Slide 22: Continuing to expand CNG portfolio with innovative products
1 Continuing to expand CNG portfolio with innovative products Leveraging deep customer insights to launch product interventions to address unmet customer needs Voice Assisted Sunroof Air Purifier Wireless charger iRA Connected Car Tech 22
Slide 23: Adaptive product development in EVs
1 Adaptive product development in EVs Approach in sync with market readiness, with the intent to provide elevated user experience Gen Gen Gen 01 02 03 Quick conversion programs EV-First modular platform Optimized, dedicated EV platform Quick delivery Up to 450km ~80% New body Up to 500 km 60% Segmen
Slide 24: Growing the EV market in India
2 Growing the EV market in India Differentiated approach to growing the EV market in India Setting New Aspirations Driving Fleet Adoption • Long-range, aspirational vehicles setting new aspirations in • Dominant market share in fleets, driven by strong value India proposition • Tech-rich products to
Slide 25: New products will address additional customer personas
2 New products will address additional customer personas Aspirational product range is expected to appeal to more premium, individualistic customers Current Customer Personas Target Customer Personas for New Products Persona as a % of TIV • Individualistic, style conscious • Socially expressive 12%
Slide 26: Growing the EV market in India
2 Growing the EV market in India Continued myth-busting and ecosystem enablement to drive adoption by first-time buyers, including renters Myth-busting with 100 Reasons to go EV Focus on Charging Infra • Development of shared “Community Chargers” to serve apartment societies • Focus on expansion of
Slide 27: Localization of EVs
3 Localization of EVs Aggressive localisation to drive cost reduction and to benefit from PLI schemes Localization Roadmap Key partnerships and Vendor park 2022 Next 3-4 years 20+ <70% 85% Strategic tie-ups Localization @ Tier1 Localization by with HV Aggressive FY25 @ Tier1 component localization v
Slide 28: Leveraging advanced technologies
4 Leveraging advanced technologies We will continue to introduce advanced technologies to deliver a premium experience Wireless Android Auto and Apple 360 deg surround view system 26.03cm touch screen infotainment Carplay 6 way powered seat with memory Voice assistant- 6 language 180+ ADAS features
Slide 29: Leveraging advanced technologies
4 Leveraging advanced technologies We are working on advanced digital and connected products to improve customer experience Driving Vehicle Charging Remote Safety Social & trip analytics health monitoring SuperApp commands and security Tribes Location and availability of public Health Time to charge
Slide 30: Leveraging advanced technologies
4 Leveraging advanced technologies We are completely re-imagining our customer journeys, leveraging digital tools 30
Slide 31: Structured margin improvement program
5 Structured margin improvement program A structured program has been institutionalized across 4 pillars Mix Realization Cost Leverage Market Competitive Price Commercial Reductions Model Mix Optimum Utilisation Actions Trim Mix Appropriate VME VAVE Fixed Cost Leverage Non-Vehicular Business Commodi
Slide 32: Our aspirations
Our aspirations TMPV TPEM “Win” Sustainably “Win” Pro-actively; maintain market leadership • Sustainable market share gain • Create wide product portfolio: highest addressable market • Expand product portfolio and enhance competitiveness • Drive EV adoption/ penetration o New nameplates o Network ex
Slide 33: Winning Decisively in CV
Winning Decisively in CV Girish Wagh Executive Director Tata Motors Limited
Slide 34: Content
Content - Year of many firsts - FY23 business overview - Levers to drive market leadership - Mega trends and future growth areas 34
Slide 35: CV Industry continuing to be in upcycle, fuelled by India’s growth
CV Industry continuing to be in upcycle, fuelled by India’s growth Fully emerging from the shadows of pandemic and other disruptions, Indian CV Industry continues to be in robust upward trajectory Total Freight traffic… % Growth CV TIV K 2 Units 1,042K 985.4K +34% +26% FY86 FY88 FY90 FY92 FY95 FY97
Slide 36: Segment wise influencing parameters (FY24)
Segment wise influencing parameters (FY24) All influencing parameters except fuel prices are positive or neutral across segments <12T GVW MHCV Tipper Tractor Trailer Buses Macro Economic Environment (GDP,IIP, PFCE) Agriculture Agriculture Roads EXIM School Consumer Tours Cement Mining Cement Durable
Slide 37: FY23: A Tale of two halves
FY23: A Tale of two halves Improved margins through better realization, cost reduction, and commodity prices cooling off (Example HCV trucks) 8.4 FY22 H1 FY23 H2 FY23 61.0% in % 56.0% 7.9 in % 51.0% Consistent market share 7.4 growth, +3.2% in five years 46.0% 6.9 41.0% 6.4 in Rs 36.0% Lakhs
Slide 38: CV revenue, market share and EBITDA
Business achieved double digit EBITDA in Q4, with sequential improvement in margins Q4 EBIT highest in last 21 Quarters, with pull back of discounts and better than budgeted cost reduction Market share Deployment of revised Market share (VAHAN) pricing guidelines 4.23 44.7% Volume (in lakhs) 43.1% 4
Slide 39: Levers to drive market leadership
Levers to drive market leadership 1 Go to Market Excellence: GTME 5.0 2 Building Strong Brand Association through digitalization for better customer through differentiated content, Influencer acquisition and stakeholder engagement advocacy, and a strong digital marketing 3 Enhancing Customer Experie
Slide 40: GTME 5.0: Building analytics-led pricing engine and tools for future
1 GTME 5.0: Building analytics-led pricing engine and tools for future 1 Data backed pricing and VAS engine To drive consistent decisions 2 Building Sales Force of Future 1. Empowering Field Sales Force To drive effective sales decisions • Revised beat Plan • Pre Visit insights Customer 360 • Sa
Slide 41: Repositioning Brand and building strong brand associations
2 Repositioning Brand and building strong brand associations Targeted communication based on customer insight analytics Leveraging influencer advocacy Digital marketing and pipeline management Augmenting dealer discovery and online sales 41
Slide 42: Focused brand actions led to improvement in customer facing metrics
2 Focused brand actions led to improvement in customer facing metrics Highest top of mind awareness Highest ever net promoter score Composite satisfaction score* 71 821 792 813 57 68 68 55 55 55 65 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY21 FY22 FY23 *Composite CSAT measurement started in FY’21 Co
Slide 43: Enhancing Customer Experience
3 Enhancing Customer Experience With customer insight driven superior and agile services and value-adds along with ecosystem plays Beyond Sampoorna Seva 2.0 Value Added Services Network reach and Delivering ‘Peace of mind’ Industry first comprehensive add-ons effectiveness New formats (Low breakeven
Slide 44: BSVI Phase II and beyond
4 BSVI Phase II and beyond: Enriching Product and technology portfolio for competitive superiority and wider market addressability Conceptualization Introduction Selling Beyond mere compliance Impactful and Unmatchable Offer Performance Establishment • Reimagined product range in • ‘Impactful launch
Slide 45: Building competitive cost structure to lower the breakeven
5 Building competitive cost structure to lower the breakeven, maturing towards cost leadership Cost reduction Capital Efficiency Cash Management Teardown and benchmarking Focus on Modularity Digitization of Cash MIS Standardization and benchmarking Flexibility in payment processing & Advanced VAVE,
Slide 46: Accelerating after sales business
Accelerating after sales business Expanding downstream portfolio, increasing spare and service penetration with strong revenue growth Growth Levers Spare Penetration Service Penetration Competitive product portfolio with branding Improve Network Reach, efficiency & FY19 FY20 FY21 FY22 FY23 FY19
Slide 47: TML Smart City Mobility Solution Ltd: Shared Mobility Play
TML Smart City Mobility Solution Ltd: Shared Mobility Play, profitable in 1st Year Operating 730 EV buses across 10 locations; expecting ~ 3.3K buses on road by FY25 Own, Operate and Maintain model GCC FAME II buses currently operational JSCL, Jammu & Srinagar GCC FAME II buses in pipeline QoQ incre
Slide 48: Industry Mega Trends and imperatives
Industry Mega Trends and imperatives Building organizational agility and core domain capabilities to lead the change ACES Sustainability Digitalisation Industry Mega Trends Autonomous Net Zero GHG Data Monetisation Connected Circularity End to end digitalised processes Shared Renewable Energy Electr
Slide 49: Investing in technologies and building strategic partnerships
Investing in technologies and building strategic partnerships to embrace the future Building Fuel agnostic platforms with Modular architectures Driving Electrification and green fuels across portfolio Hydrogen Internal Combustion engine vehicles Fuel Cell Electric Vehicles Battery Electric
Slide 50: Driving electrification to lead EV transition in Commercial Vehicles
Driving electrification to lead EV transition in Commercial Vehicles Delivering comprehensive EV solution, customized to address the intended application requirements Ace EV EV Buses Ultra E.9 Prima E.55 and H.55 Ramping up deliveries for last mile 730 EV buses across 10 locations, Concepts unveiled
Slide 51: Digitalization: Fleet Edge- Connected Vehicle Platform
Digitalization: Fleet Edge- Connected Vehicle Platform Addressing customer and stakeholder pain and friction points in both truck and trip ecosystems Value proposition for customers Fuel manage- • Improve fuel efficiency through driving ment insights • Optimum routing through tracking and Vehicle ge
Slide 52: Leading the sustainability journey in alignment with project “Aalingana”
Leading the sustainability journey in alignment with project “Aalingana”, Finalized RE100 roadmap and registered improvement in external ratings (CDP and DJSI) Driving net zero Circularity Preserving nature & biodiversity Products plans aligned to SBTi, to Water Neutrality: Started Biodiversit
Slide 53: Securing EV Supply Chain – Agratas Energy Storage Solutions Limited
Securing EV Supply Chain – Agratas Energy Storage Solutions Limited Thomas Flack Chief Executive Officer Agratas Energy
Slide 54: Gravitas Agra
> Agra Gravitas Empowered leadership Dignity, Solemnity Derived from Sanskrit, “Agra” stands for empowered leadership, combined with “Gravitas” to get “Agratas”. Meaning that we are serious about being at the forefront of the global battery industry, pioneering power for the future generations 54
Slide 55: Agratas Global large-scale world-class battery gigafactory
Agratas || Global large-scale world-class battery gigafactory Tata Group aspires to be at the forefront of global battery manufacturing industry Picture credits: Google 55
Slide 56: Key areas of play
Key areas of play Immediate focus is on end-to-end cell deign to validation, and, industrialization Material Module & Cell Testing Raw Material Synthesis & Cell Format Cell Cell Pack Repurpose & Design Recycle Extraction Component & Design Production Validation Design & & Reuse Validation Mfg. Testi
Slide 57: Sustainability is core to Agratas
Sustainability is core to Agratas Green initiatives planned to reduce carbon-footprint across the value chain Supply Chain Sustainable Manufacturing Reuse & Recycling ~Zero effluents out of factory through Repurposing of used cells recycling within premises Significant Localization to reduce Raw mat
Slide 58: Customers
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Slide 59: Anchor customers
Anchor customers Leverage to kick-off industrialization at scale • Premium applications with long-range • Focus on lifecycle and safety • Focus on performance & fast-charging • Affordable to premium target customer segments 40 GWh+ 20 GWh+ 59
Slide 60: Engaged in developing best-in-class battery over last few years
Engaged in developing best-in-class battery over last few years Integrated battery co-engineering enables faster time to market Start of Vehicle Vehicle Development Gateway Process Production Pack Pack Design & Pack Integration Development Cell Design & Cell Development Cell Industrialization Tech
Slide 61: Plan to cover a wide range of customer segments in future
Plan to cover a wide range of customer segments in future To cater to a large range of applications with varied battery needs Luxury Passenger Affordable Passenger Commercial vehicles Two-Wheelers and Energy Storage Vehicles Vehicles (light to heavy, truck to Three-Wheelers Solutions bus) Long ran
Slide 62: Technology
TECHNOLOGY SA SSG ae Ane
Slide 63: Agratas custom battery design
Agratas custom battery design Unified cell format “Prismatic” developed for Tata Motors and JLR. Easily extendable to other segments Stacked Prismatic Cell Flexibility in chemistry • Enables acceleration of future generation Superior-cell-to-pack efficiency` chemistries (i.e., all solid-state) • Opt
Slide 64: Battery chemistry
Battery chemistry LFP and High-Nickel NMC chemistries for TML & JLR applications Lithium Iron Phosphate (‘LFP’) Nickel Manganese Cobalt (‘NMC’) Low cost, long cell life and durable High energy density, enhanced performance, fast charging Li Li O Cathode: LiFePO4 O Cathode: High-Ni NMC LFP Anode: Gra
Slide 65: Futuring battery through technology changes
Futuring battery through technology changes Plan to deliver best in class batteries for current & future products based on market radar Solid-state Li-S Silicon Technology Technology Li-Air F-free Technology Organic Batteries Cobalt-free Next-Gen Metal-air Electrolytes LMFP Mg-ion Bipolar Electrodes
Slide 66: World-class R&D setup
World-class R&D setup Deep-IP research is core to Agratas ‘World-class’ research facilities in India and UK Deep IP development leveraging global talent Strong connections with leading academic and research institutions Deep-rooted industrial partnerships 66
Slide 67: Leverage R&D ecosystems - leading research institutions
Leverage R&D ecosystems - leading research institutions Plan to plug-into larger technology advisory counsel to drive R&D Developing Technical Advisory Counsel University of Cambridge • Rotating committee of global experts Dalhousie University Battery 2030 Access to best-in-class talent pool from wo
Slide 68: Manufacturing
MANUFACTURING 68
Slide 69: Gigafactory at a glance
Gigafactory at a glance AGRATAS®
Slide 70: Custom processes to ensures easy adaptation of future technologies
Custom processes to ensures easy adaptation of future technologies Three main processes with 20+ sub-processes custom-designed to ensure minimal change requirements in future Electrode Fabrication Cell Assembly Formation & Testing Anode & Cathode stacked & assembled in The final battery product – Te
Slide 71: Capex protected for capacity expansion and technology changes
Capex protected for capacity expansion and technology changes Modular & flexible gigafactories enables easy modifications 1 Factory; 6 Modular Lines; ~8GWh • Modular approach to laying down lines; can be easily replicated for capacity addition • Each line to meet specific customer’s needs • Impact o
Slide 72: Renewable sources to power the gigafactory
Renewable sources to power the gigafactory Both India & Europe factories to have dedicated renewable resources • Battery production is an energy intensive industry • Sustainability targets mandate access to substantial renewable energy • Energy is also a critical cost driver for battery, battery sup
Slide 73: Talent, Culture & Capability @ Tata Motors
Talent, Culture & Capability @ Tata Motors Ravindra Kumar GP Chief Human Resources Officer Tata Motors Limited
Slide 74: HR Focus Areas
HR Focus Areas Enabling individuals and teams grow and excel 1. Culture 5. Employee Experience • Empowerment, Collaboration & Risk taking • Best in class 2. Organization Capability 6. Diversity, Equity & Inclusion • CESS, Digital, Industry 4.0 & Sustainability • Gender & beyond 3. Leadership Develop
Slide 75: Annual HR Process Calendar
Annual HR Process Calendar • Succession planning • Learning & Development plan Dec Jan • Culture Survey • Mid Term Review Nov Feb Training calendar 2nd half Oct Mar • NRC Meeting • Training calendar H2 Sept • NRC Meeting Apr • LOOP assessment • Review with BoD Training calendar 1st half • Training c
Slide 76: Learning & Development Roadmap
Learning & Development Roadmap L6 L5 L4 L3 L2 L1 Org wide capability CESS | Digitization | Industry 4.0 | Sustainability Functional areas Commercial | Operations |Engineering | Purchase | Enabling Functions Functional leadership programs Commercial | Engineering | Operations Business Communication |
Slide 77: Building Organization Wide Capability in CESS
Building Organization Wide Capability in CESS L2 – L1 Senior Leaders Program Domain Expert Domain Expert Programs Domain Expert Programs Programs Intermediate PhD Domain Expert Intermediate Intermediate Intermediate Programs Programs Program Program Program MTech Intermediate L6 – L3 Mtech Programs
Slide 78: Upskilling Shop Floor Technicians
Upskilling Shop Floor Technicians 1 Training programs for current employees Future of Mobility Series: Awareness of CESS Fundamental Shop specific All Technicians modules Select Technicians rapidly changing Skills Training markets 2 Higher education for current employees PRAGATI - Diploma program in
Slide 79: Our Culture Credo
Our Culture Credo AT TATA MOTORS We are connecting aspirations by being bold in thought and action, owning every opportunity and challenge, Solving together as one team and engaging all our stakeholders with empathy. We are MORE WHEN ONE! BE BOLD OWN IT SOLVE TOGETHER BE EMPATHETIC Taking calculated
Slide 80: Culture Survey 2023
Culture Survey 2023 Engagement TML Culture Pillars Change Management TML 2020 59% TML 2023 71% Be Bold Understanding Best Employer 2022 82% 2023 2020 2023 2022 70% 58% 80% 76% Own It Emotion TML 2023 2020 2023 2022 69% 55% 80% 79% Tata Group Large Cos 71% TML 2023 81% Average Solve Together Action 5
Slide 81: Diversity, Equity and Inclusion
Diversity, Equity and Inclusion Celebrating diversity, challenging status quo & enabling inclusion • Sensitization workshops • Interactions and internship • Policies and workspace • Bold changes 81
Slide 82: Proactive and Positive Industrial Relations
Proactive and Positive Industrial Relations • Internal Unions • Collaborative relations based on trust and respect • Wage agreement of four years tenure linked to industry, region and productivity. • Bonus agreement based on profitability, productivity and quality • 800+ employees assimilated follow
Slide 83: Health
Health Emotional Health • Employee awareness programs • Confidential helpline for employees and family • Counselling service by professionals • Training for managers to identify stress/ anxiety signals in team members Preventive Health • Preventive health check for employees • Counseling for non com
Slide 84: Safety
Safety Proactive Safety Index • 18 Lead parameters + 1 Lag parameter (TRCFR) • Completely digitized across manufacturing units • Highest PSI2 over last 3 years matches with lowest injury rates in FY 2023 Critical to Safety Stations • Manufacturing stations with high hazard potential • Hazard identif
Slide 85: CSR Framework
CSR Framework Health 77% • Addressing malnutrition of malnourished • Preventive and curative healthcare children are • Strengthening govt. delivery mechanism healthy Education 96% • Coaching classes Pass rate of • Co-Curricular government school supported children • Financial aid Skilling 68% • Trai
Slide 86: Climate (for) Change
Climate (for) Change Jyotindran Kutty Chief Sustainability Officer Tata Motors Limited
Slide 87: Climate Change
for CLIMATE CHANGE ^ © Copyright, Confidential, Tata Motors Limited
Slide 88: The Story of an organization on the move
The Story of an organization on the move CIRCULAR ECONOMY EQUITY SCIENCE © Copyright, Confidential, Tata Motors Limited 88
Slide 89: 314 out of 365 days
Our Future is based on our Choices In 2022 India experienced extreme weather events on 314 out of 365 days (Source: IMD) ..If we thought the unusually wet May was weird, its is likely to get even more unpredictable & worse over the next few decades 89 89 © Copyright, Confidential, Tata Motors Limite
Slide 90: The Future if we continue with Business as Usual
The Future if we continue with Business as Usual z [Video Licensed under the terms of Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public Licence (“CCPL”) by World Economic Forum. Original Video can be viewed here: https://www.weforum.org/videos/20257-2021-what-to-expec
Slide 91: Our Future is based on our Actions
Our Future is based on our Actions z (Source: https://earthobservatory.nasa.gov/features/GlobalWarming/page3.php) (Source: Climate Central https://www.climatecentral.org/climate-matters/peak-co2-heat-trapping-emissions) GHG emissions from human activity are primarily responsible for the global warmi
Slide 92: Tata Motors Vision for a Sustainable Future
Tata Motors Vision for a Sustainable Future DRIVING NET ZERO, TRANSITIONING EQUITY AND EMBEDDING SUSTAINABILITY & TO A CIRCULAR ECONOMY & ‘JUST TRANSITION’ FOR ENHANCING ACCOUNTABILITY & PRESERVING NATURE & BIODIVERSITY ALL OUR STAKEHOLDERS TRANSPARENCY (Project AALINGANA) Tata Motors sees this a de
Slide 93: J.R.D. Tata quote on environment
“ I believe that the social responsibilities of our industrial enterprises should now extend, even beyond serving people, to the environment. This need is now fairly well recognized but there is still considerable scope for most industrial ventures to extend their support not only to human beings bu
Slide 94: Committed to set interim Science based Targets and Net Zero
Commitments guided by Science Committed to set interim Committed to NET ZERO by Science based Targets 2040 2045 (Targets to be validated) PV Business CV Business NE T ZE RO Tata Motors is committed to both long term and near term deep decarbonisation pathway 94 © Copyright, Confidential, Tata Motors
Slide 95: Driving Net Zero
Driving Net Zero 95 © Copyright, Confidential, Tata Motors Limited
Slide 96: Driving Net Zero: Operational Decarbonisation
Driving Net Zero: Operational Decarbonisation CV Pantnagar Tata Motors and Tata Power have entered into a Power Purchase Agreement (PPA) for a 7 MW captive solar power CV Pune project at its Pantnagar plant in Uttarakhand. 4 MWp Roof Top Solar installation started which will take the total Roof Top
Slide 97: Driving Net Zero: Collaboration & Ecosystem Play
Driving Net Zero: Collaboration & Ecosystem Play Through Tata UniEVerse, we have synchronized efforts to develop a holistic e-mobility ecosystem to accelerate the adoption of EVs in India. 97 © Copyright, Confidential, Tata Motors Limited
Slide 98: Ratan N Tata quote on restoration
“The idea is not to test the limits of our planet and find out how much more damage it can take, but to come together and begin restoration and reversal. We owe it to every generation that comes after.” Ratan N Tata, Tweet on 23rd Jan 2020 98 © Copyright, Confidential, Tata Motors Limited
Slide 99: Pioneering Circular Economy
Pioneering Circular Economy Recycled Material Resources Landfill Extend Life through Take Make Use Dispose maintenance, repair, Keep Material in Renewable Energy & re-use, re-purpose, increasing value Zero Emissions re-manufacture etc. Loops Extraction of Fossil Energy & Poor Utilization Lower Lifet
Slide 100: Pioneering Circular Economy: in our Operations
Pioneering Circular Economy: in our Operations ALL OPERATIONS ALL WILL BE OPERATIONS WATER WILL ACHIEVE NEUTRAL ZERO WASTE BY 2030 TO LANDFILL (Pantnagar and Lucknow Operations have already BY 2030 achieved neutrality) Tata Motors will invest in technologies and community based solutions to ensure n
Slide 101: Pioneering Circular Economy: A holistic journey
Pioneering Circular Economy: A holistic journey Increased Recycled Content in Towards Water Positivity Products & Packaging Zero Waste to Landfill NE Pioneering Circular T Economy ZE RO TML Smart City Mobility Solutions Ltd. Tata Motors has already started this journey and has taken initiatives acro
Slide 102: Pioneering Circular Economy: Enterprise Framework
Pioneering Circular Economy: Enterprise Framework Material Product Circularity Decarbonization Enabling resource Achieving net-zero recovery and carbon emissions closing material ENTERPRISE LEVEL across the whole loop life cycle CIRCULARITY FRAMEWORK (KPIs, Metrics, Targets) Lifetime Utilization Opt
Slide 103: J.R.D. Tata on the Sumanth Sarovar lake
"We did not have to create a lake to produce a truck. But we did” J.R.D. Tata on the Lake we now know as the Sumanth Sarovar built by our former Chairman Mr. Sumanth Moolgaokar 103 © Copyright, Confidential, Tata Motors Limited
Slide 104: Preserving Nature and Biodiversity
Preserving Nature and Biodiversity Tata Motors is aligning its Biodiversity and Nature Goals to the Kunming - Montreal Global Biodiversity Framework 104 © Copyright, Confidential, Tata Motors Limited
Slide 105: Preserving Nature and Biodiversity: Across our Value Chain & Beyond
Preserving Nature and Biodiversity: Across our Value Chain & Beyond Conserving Habitats around Aligning to Science to Map Taking up Flagship Projects our Operating Sites and Set Targets across our for Nature Based Solutions Value Chain beyond our Value Chain Tata Motors is evolving a Multi-Decadal s
Slide 106: Preserving Nature and Biodiversity: Around our Operations
Preserving Nature and Biodiversity: Around our Operations z [Background Music: Inbound by Scott Buckley | https://soundcloud.com/scottbuckley Music promoted by https://www.free-stock-music.com Creative Commons / Attribution 4.0 International (CC BY 4.0) https://creativecommons.org/licenses/by/4.0/]
Slide 107: Ensuring a ‘Just’ Transition
Ensuring a ‘Just’ Transition SUPPLY CHAIN CHANNEL PARTNERS E S G Arogya Kaushalya Amrutdhara Seva Community Interventions Vidyadhanam Vasundhara Aadhaar A ‘Just’ Transition for our stakeholders 107 © Copyright, Confidential, Tata Motors Limited
Slide 108: Governance: Embedding Sustainability
Governance: Embedding Sustainability PROJECT AALINGANA TML BOARD Disclosures & Reporting SHS Committee of the Board Ex-Com BU Sustainability Governance Sustainability BSC Sustainability Strategy Governance Governance Sustainability while being driven through a top-down agenda is now being embedded d
Slide 109: Governance: Enhancing Transparency
Governance: Enhancing Transparency B Significant improvement over last year’s score. Significant two band Inclusion into the jump over last year’s prestigious Emerging score. Markets Index Our ESG Scores are a reflection of am increasingly comprehensive and transparent reporting 109 © Copyright, Con
Slide 110: Providing Leadership- Leading by example
Providing Leadership- Leading by example Water Neutral CIRCULAR Zero Waste to Landfill Ensuring a ‘Just’ Transition ECONOMY Material. Energy. Lifetime. for all our stakeholders Utilization 2030 across all our Operations 2040 for PV EQUITY Investing in 2045 for CV Solar and Wind Science Based Targets
Slide 111: Financial Outlook
Financial Outlook PB Balaji Chief Financial Officer Tata Motors Group
Slide 112: TML India getting back in shape after a tough few years
TML India getting back in shape after a tough few years IndAS, ₹ K C r CV EBITDA %(1) PV EBITDA %(1) 10.1% Domestic Business FCF(2) 7.4% 6.4% 7.3% 5.3% 4.2% 3.7% 2.0% FY21 FY22 FY23 Q4 FY23 FY21 FY22 FY23 Q4 FY23 CV PBT(bei)(1) PV PBT(bei)(1) 3.8 2.7 2.4 1.9 (3) (3) FY21 FY22 FY23 Q4 FY23 3.2 0.2 1.
Slide 113: Our medium-term goals are well defined
Our medium-term goals are well defined We remain committed to consistent, competitive, cash accretive growth and deleverage the business COMMERCIAL VEHICLES PASSENGER VEHICLES ELECTRIC VEHICLES STRONG DOUBLE DIGIT EBITDA DOUBLE DIGIT EBITDA POSITIVE EBITDA MARGINS ANNUAL CAPEX UP TO INR 2,500 Cr. AN
Slide 114: We are investing to secure our future
We are investing to secure our future Over 50% spend will be towards green technologies Domestic Business Investment Spend (CV + PV + EV) INR Crs 8,000 6,419 3,664 2,586 FY21 FY22 FY23 FY24 (Est) 114
Slide 115: …whilst remaining prudent
…whilst remaining prudent Not to scale Leases INR 8.3K Crs 1 115
Slide 116: This approach is being well received by the rating agencies
This approach is being well received by the rating agencies CRISIL, S&P gives 1 notch upgrade. Moody’s and ICRA revise outlook to positive Rating Agencies Long Term Rating Update CRISIL AA / Stable Rating upgrade ICRA AA- / Positive Outlook upgrade CARE AA- / Stable S&P BB / Stable Rating upgrade Mo
Slide 117: Corporate actions to simplify, synergize and scale
In parallel, a slew of corporate actions have been launched to simplify, synergize and scale USD 1 Bn raised from TPG Rise Climate in EV business Voluntary delisting ADS from NYSE aimed at simplifying at a valuation of USD 9.1 Bn; will help self fund reporting requirements business capex TTL files D
Slide 118: We have our task cut out and are executing it with rigour
To co n c l u d e We have our task cut out and are executing it with rigour • Our well differentiated strategy is starting to yield results. • We will be focused on driving customer centric innovation, service and digitalisation. • We will integrate sustainability into our business strategy to seize
Slide 119: Q&A
Q&A Girish Wagh PB Balaji Ravindra Kumar GP Thomas Flack Jyotindran Kutty Rajendra Petkar
Slide 120: Thank you
Thank you