Tata Motors Limited · NSE:TMCV
Tata Motors — Q2 FY23 Earnings Presentation
48 slides from Tata Motors's earnings presentation, Nov 9, 2022
Slide 1: Tata Motors Group Results for quarter ended 30 September 2022
TATA MOTORS Tata Motors Group Results for quarter ended 30°" September 2022
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”), Jaguar Land Rover Automotive ple (“JLR ”) and its business segments may be “forward-looking statements” within the meaning of applicable sec
Slide 3: Product and other highlights
Product and other highlights TATA MOTORS Launch of 5 CNG trucks, including India’s first Setting new benchmarks with the launch of the Launch of Tiago EV, receives blockbuster in MHCYV, introduction of new age ADAS Yodha 2.0, Intra V20 bi-fuel and Intra V50. opening with more than 10K bookings Range
Slide 4: Q2: Revenue ₹79.6K Cr, EBITDA 9.7%, PBT(bei) ₹(1.8)K Cr
Q2: Revenue % 79.6KCr, EBITDA 9.7%, PBT(bei) % (1.8)KCr TATA MOTORS Volume recovery and richer mix improves margins despite lower than planned volumes at JLR Q2 FY23 | Consolidated |IndAS, = KCr Global Wholesales Revenue oa (bei) (sc) YoY 433.1% Mei YoY 29.7% ae ———__ 796 71.9 aay 335.8 au 252.2 18
Slide 5: EBIT 2.4%; Net Auto Debt ₹59.9K Cr
EBIT 2.4%; Net Auto Debt % 59.9 KCr TATA MOTORS EBIT improves YoY and QoQ. Q2 FY23 | Consolidated |IndAS Revenue % KCr 4.9 0.6 79.6 28.0% 8.0% (7.3)% 1.0% L J Y 29.7% increase Q2FY22 Volume & Mix Price Translation Others Q2FY23 Profitability (EBIT) =Cr Net Auto Debt = KCr 60.7 59.9 rr) 487 1,946 a 1
Slide 6: Jaguar Land Rover Automotive plc
JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL Results for the quarter ended 30 September 2022 Chief Financial Officer
Slide 7: Q2: Revenue £5.3b, EBITDA 10.3%, PBT(bei) £(173)m
Q2: Revenue £5.3b, EBITDA 10.3%, PBT(bei) £ (173)m Revenue, profitability, cash flows improve despite lower than planned volumes due to chip supply Q2 FY23 | Jaguar Land Rover | IFRS, £m Retails [CRIES F (Kunits) £m eee PBT* (bei) —_—__ £m Yor (496 Yor +36 5,260 4,406 92.7 a 88.1 3,871 = 173 -302 52
Slide 8: Q2 FY23 Performance highlights
Q2 FY23 Performance highlights Volume & Revenue Profitability Cash Flow Retails up QoQ by 12% but down YoY by 5% vs Q2 FY22 (before chip constraints fully impacted sales to customers) Wholesales up 5% QoQ, disappointingly lower than planned, due to a shortage in supply of specialised chips from a sp
Slide 9: Q2 wholesales of 75k, up 5% QoQ, 18% YoY with improved model mix
Q2 wholesales of 75k, up 5% QoQ, 18% YoY with improved model mix Q2 retails of 88k, up 12% QoQ but down from Q2 FY22 (before impact of chip constraints) Q2 FY23 | Brands | Units in 000’s RANGE ROVER DEFENDER DISCOVERY JAGUAR * 19.2 16.7 16.9 173 4 145 pi 136 Be : LI LJ a a a Pa a cs |_| Q2 a at Qi Q
Slide 10: Q2 wholesale China & N. America mix significantly improved
Q2 wholesale China & N. America mix significantly improved Q2 retail China & N. America mix also improved QoQ Q2 FY23 | Regions | Units in 000’s UK N. AMERICA EUROPE 213 19.6 7 174 7 * 143 160 15.0 14.0 4 : U [J if = a cc Q2 qi a2 Q2 qi a2 a2 qi a FY22 FY23. FY23 FY22 FY23 FY23 Fy22 FY23. FY23 * we
Slide 11: Improved profitability YoY reflects stronger volume, mix and pricing
Improved profitability YoY reflects stronger volume, mix and pricing Partially offset by increased inflation, structural costs and FX impacts Q2 FY23 | IFRS, £m Volumes 120° Pricing 112% Material (181) 4 cost , VME M 302 a + a 7p%6t0 29° Manu- at eer (1.1)% facturing missions (gy) i: A arranty 24 Ot
Slide 12: Favourable operational FX offset partially by hedging
Favourable operational FX offset partially by hedging Total FX unfavourable £(38)m after other FX revaluation Q2 FY23 | IFRS, £m (189) 244 (92) (45) 7 (38) Operational Realised FX FX Impact FX revaluation of net Other FX FX impact on PBT Unrealised FX, Commodity hedges on EBIT debt & debt hedges Rev
Slide 13: Near breakeven free cashflow £(15)m in Q2
Near breakeven free cashflow £(15)m in Q2 Free cashflow excluding working capital £109m Q2 FY23 | IFRS, £m sansa Free cashflow excluding a ei working capital £109m Receivables 80 f a Inventory (110) 4 i) Other 175 t 15) (173) (15) Q1 FY22to Q2 FY23 £(2,076)m PBT* Non-cash Cash Cash profit Investment
Slide 14: Cash flow breakeven around 280k wholesales in Q2
Cash flow breakeven around 280k wholesales in Q2 Units 000’s Annualised cash flow 330 320 breakeven wholesales ' : FY19 FY21 FY22 Q1 FY23 Q2 FY23 Note: FY22 and prior years include working capital
Slide 15: Total Q2 investment £526m
Total Q2 investment £526m Engineering capitalisation rate 40%, increasing as future products reach capitalisation triggers Q2 FY23 | IFRS, £m Capitalised Expensed Total Capital Total Engineering Engineering Engineering Investment Investment Q2 FY22 119 199 318 166 484
Slide 16: Business Update
BUSINESS UPDATE
Slide 17: Semiconductor response
Semiconductor response Optimising program planning and improving future supply OPTIMISE PROGRAM PLANNING Optimise production plans given chip constraints using digital tools Ensure available chips are allocated to the most profitable models and markets IMPROVE FUTURE SUPP Engaging directly with chip
Slide 18: New Range Rover & Range Rover Sport production increasing
New Range Rover & Range Rover Sport production increasing Ramp up continuing with further increases planned 2,400 2,000 1,350 1,350 i lI Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Note: Approximately 46 weeks of production in each fiscal year due to planned shut down periods
Slide 19: Strong demand continues — record order book of 205k units
Strong demand continues — record order book of 205k units New Range Rover, New Range Rover Sport & Defender account for over 70% of order book Q2 FY23 | Units in 000’s 110 Other Q1 FY22 closing order book 155 125 Other Other Defender “— Q2FY22 closing —Q3 FY22 closing order book order book Other Def
Slide 20: JLR and retailer inventory remain below normal levels
JLR and retailer inventory remain below normal levels Units 000’s 80 70 60 50 40 30 20 10 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 JLR Inventory ——Retailer Inventory JLR inventory target range*
Slide 21: Significant inflation headwinds offset by Refocus
Significant inflation headwinds offset by Refocus Revenue and cost optimisation actions being taken to mitigate inflation } = sFY23 SOURCES OF INFLATION | SOURCES OF INFLATION REFOCUS SAVINGS IN FY23 MARKET PERFORMANCE * £250m value contribution in H1 * Primarily re-pricing and optimisation of avail
Slide 22: Outlook: Expect improved results as chip supply gradually improves
Outlook: Expect improved results as chip supply gradually improves FY23 ACTUALS FY23 OUTLOOK WHOLESALES* REVENUE EBIT MARGIN INVESTMENT FREE CASH FLOW KEY PRIORITIES - Continue to secure chip supplies through strategic tie ups - Continue to ramp up production of the New Range Rover and the New Range
Slide 23: Tata Commercial Vehicles
TATA MOTORS Tata Commercial Vehicles Girish Wagh & PB Balaji (Includes Tata CV India, Tata Cummins JO results and Tata CV International)
Slide 24: Registration (VAHAN) market shares at 43.2%
Registration (VAHAN) market shares at 43.2% Shifting to “Demand Pull” business model for sustainable market share gains; focus on profitable growth Tata Commercial Vehicles | Domestic market share 44.7% Fy22 HGV+HMV po 50.7% 50.7% FY22 QaFy23 HAFY23 48.6% FY22 43.9% Ql FY23 Commercial Vehicles 43.2%
Slide 25: Tata Commercial Vehicles - Volumes
Tata Commercial Vehicles - Volumes TATA MOTORS Strong YoY growth driven by increase in MHCYV, passenger carrier demand, pick up in infra projects; higher retails Tata Commercial Vehicles |India Business Volumes Wholesales (incl. exports ) (Cee) a Retails (domestic) YoY 14.9% _ (k units) YoY 1011 87.
Slide 26: Q2: Revenue ₹16.4K Cr, EBITDA 5.0%, PBT(bei) ₹0.3K Cr
Q2: Revenue % 16.4KCr, EBITDA 5.0%, PBT(bei) % 0.3 KCr Revenue growth of 36%; Q2 margins impacted by residual commodity inflation. Q2 FY23 | Tata Commercial Vehicles |IndAS, = KCr Wholesales Revenue PBT (bei) (K units) vey Kr YoY Goa 103.7 103.1 as 163 16.4 12.1 89.7 0.1 a2 Fv22 Qi Fy23 a2 FY23 2 FY
Slide 27: EBIT at 2.3% (+260) bps; PBT (bei) ₹0.3K Cr
EBIT at 2.3% (+260) bps; PBT (bei) = 0.3 K Cr TATA MOTORS Margins improve on higher volumes and realisations offset by residual commodity inflation; Reductions secured from Q3 Q2FY23 | Tata Commercial Vehicles |IndAS, = Cr Cr. IndAs @ FMEX(29) Cr @ Employee cost % (118) Cr @ D&A and PDE : 9Cr @ Othe
Slide 28: Tata Commercial Vehicles — Overall update
Tata Commercial Vehicles — Overall update TATA MOTORS Industry continued upward trajectory, cautiously optimistic despite inflationary head winds Key Highlights Industry continued its upward trajectory, grew by 40% YoY this quarter EBIT margin impacted due to residual impact of commodities and lower
Slide 29: Tata Commercial Vehicles — New business update
Tata Commercial Vehicles — New business update Electric Mobility = Successfully completed ACE EV in-market trials with leading e-Commerce customers = Gearing up operations and supply chain to deliver healthy order pipeline of E-buses and Ace EV L.MVP: Minimum Viable Product 2, LOA: Letter of allocat
Slide 30: Tata Passenger Vehicles
TATA MOTORS Tata Passenger Vehicles Shailesh Chandra & PB Balaji (Includes Tata PV, EV India, FIAPL JO results and International business(PV+EV))
Slide 31: Tata Passenger Vehicles — Sustained volume growth
Tata Passenger Vehicles — Sustained volume growth TATA MOTORS Tata Passenger Vehicles |India business | Volumes Wholesales (incl. exports ) (K units) ——————— m Exports YoY 69.0% 142.8 130.4 05 02 84.4 04 a2 Fy22 Qi Fy23 Q2 FY23 Domestic Market share zu FY21 FY22 H1 FY23 Retails (domestic) (Kunits) Y
Slide 32: Surpassed FY22 sales in H1 FY23; Expanding sales and charging network
Surpassed FY22 sales in H1 FY23 ;Expanding sales and charging network TATA moToRS to accelerate sales growth Tata Passenger Electric Vehicles | Domestic Volume & Market Share Network Charging infra 88% 3,466 ayes 20,808 250 9,105 71% 165 2,000 143 97 75 4,218 51 J FY21 Fy22 FY21 FY 22 H1FY23 FY21 FY
Slide 33: Q2: Revenue ₹12.5K Cr, EBITDA 5.4%, PBT(bei) positive
Q2: Revenue 12.5KCr, EBITDA 5.4%, PBT(bei) positive Revenue growth 71%; Q2 margins impacted by residual commodity inflation and fx. Q2 FY23 | Tata Passenger Vehicles |IndAS, % KCr Wholesales Revenue (Kcunits) Yor % kor 142.8 130.4 7.3 84.4 Q2FY22 Ql FY23 Q2 FY23 Q2FY22 EBITDA % YoY (70) bps 6.1 61 5
Slide 34: EBIT at 0.4% (+200) bps; PBT (bei) positive
EBIT at 0.4% (+200) bps; PBT (bei) positive TATA MOTORS Margins improve on better volumes, mix & realisations offset by residual commodity inflation, fx Q2FY23 | Tata Passenger Vehicles |IndAS, % Cr Cr. IndAS @ FME: %(15) Cr @ Employee cost : %(140) Cr @ D&A and PDE : %(39)Cr @ Other fixed expenses
Slide 35: Business update
Business update Significant growth posted in Q2; PV and EV business growth to continue. Tata Passenger and Electric Vehicles Key Highlights * Industry wholesale breached quarterly Industry 1mn mark in Q2 for the first time ever; with 38% YoY growth * Segment MS : SUV @ 41.6% with 220 bpsf, Hatches @
Slide 36: Tata Motors (CV+PV)
TATA MOTORS Connecting Aspirations Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL.
Slide 37: Q2 FY23 Free Cash Flows ₹0.7K Cr
Q2 FY23 Free Cash Flows ~% 0.7 KCr TATA MOTORS Ce ‘ting Aspirati Strong cash profits and favourable working capital driving positive cash flows ome Q2FY23 | Tata Motors Domestic Business |IndAS, = Cr* @ Payables, acceptances = 148 Cr @ Trade receivables = 163 Cr @ Inventories = 1 Cr @ Others % 106 C
Slide 38: Investment Spending in Q2FY23 ₹1.2K Cr, H1FY23 ₹2.3K Cr
Investment Spending in Q2FY23 % 1.2 KCr, H1FY23 % 2.3 KCr TA MOTORS FY23 capex to be ~ = 6000 Cr; FCF to remain positive GennestnyySeiclins Q2FY23 | Tata Motors Domestic Business* |IndAS, = Cr Q2FY23 | Domestic CV Business |IndAS, % Cr 194 515 200 321 | 121 TT Capitalised Expensed Total Capital & Ot
Slide 39: Managed AUM ₹46.3K Cr & PBT ₹(77 Cr)
Managed AUM & 46.3K Cr & PBT % (77 Cr) Normal book is healthy; Focus on sourcing and growing quality book with targeted collections; Pandemic affected restructured book being monitored closely H1 FY23 |Tata Motors Finance | IndAS, %( Cr INR) dle an Fy23 CV Market Share 28% 23% PBT 15 (77) ROE (Pre-t
Slide 40: Looking ahead
Looking ahead TATA MOTORS We remain committed to consistent, competitive, cash accretive growth whilst deleveraging the business Outlook (FY23) * Demand remains strong for now; will remain a key monitorable in the wake of global uncertainties * Chip supply to improve further; volumes to ramp up stea
Slide 41: Q&A session Thank you
TATA MOTORS Q&A session Thank you Please submit your questions in the Q&A textbox Please mention your name and name of the organization you represent along with the questions
Slide 42: Tata Motors Group: Additional details
TATA MOTORS Tata Motors Group : Additional details Results for the quarter ended 30*' September 2022
Slide 43: Q2 FY23: Tata Motors Group Financials
Q2 FY23: Tata Motors Group Financials TATA MOTORS Consolidated Quarter ended September 30, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 49,477 16,420 12,547 1,166 79,611 Grant income / incentives 471 72 101 2 646 Expenses : Cost
Slide 44: Q2 FY22: Tata Motors Group Financials
Q2 FY22: Tata Motors Group Financials TATA MOTORS Consolidated Quarter ended September 30, 2021 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Grant income / incentives ‘AMG "122 ‘618 Expenses : Cost of materials consumed (25,529) (9,245) (6,100) (216) (41,091
Slide 45: Tata Motors Group Financials: Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover Q2 FY23 & H1 FY23 | IFRS, £m aura cnmas, cares Mf auygner atagngun Panstrzty Revenues 3,871 4,406 5,260 8,837 9,666 1,389 854 829 Material and other cost of sales (2,500) (2,762) (3,212) (5,649) (5,974) (712) (450) (325) Employee costs (513) (570) (604)
Slide 46: Registration (VAHAN) market shares at 43.2%
Registration (VAHAN) market shares at 43.2% TATA MOTORS Shifting to “Demand Pull” business model for sustainable market share gains; focus on profitable growth Tata Commercial Vehicles | Domestic market share Commercial Vehicles 44.7% 43.9% 43.2% Fy22 Qi Fy23 H1FY23 MHCV ILCV scv Buses & Vans Bes 53
Slide 47: Debt profile
Debt profile Strong liquidity; debt maturities well spread out a Total IFRS, £1 ii il m Debt maturity profile 8,216 768 Undrawn 835 | “a 241 z — 4 cy22 cy 25 cy 26 Thereafter Total Borrowings ™ Bonds ®™ Bank facilities m@ Finance Lease £5.2b Liquidity JAGUAR IndAS Tata Domestic Business* % Crores De
Slide 48: About Tata Motors
(NYSE: TTM ; BSE: 500570 and 570001 ; NSE: TATAMOTORS and TATAMTRDVR ) About Tata Motors Part of the USD 128 billion Tata group, Tata Motors Limited , a USD 37 billion organization, is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses, offering extensive