Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Investor Presentation (March 2007)
28 slides from Tata Motors Passenger Vehicles's investor presentation, March 2007
Slide 1: Investor Presentation
Tata Motors Ltd. Investor Presentation February - March 2007 1 1
Slide 2: Forward-looking statements
Statements in this presentation describing the Company’s objectives, projections, estimates, expectations may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors th
Slide 3: Economic and Industry Overview, Business Overview & Future Plans, Business Results
Economic and Industry Overview Business Overview & Future Plans Business Results 3 3
Slide 4: India - A Convincing Growth Story
India - A Convincing Growth Story GDP Growth (%) 9% From Hindu Rate of • Current GDP growth rate at 8% Economic Growth to Robust Economic 8.0% 8% • Growth target of 9% set by the Govt. during the Growth eleventh five year plan, 7% 6.0% • As per Goldman Sachs Brics Report GDP of 6% India is expected
Slide 5: Indian Automobile Industry – Also On a Growth trajectory
Indian Automobile Industry – Also On a Growth trajectory Turnover of Automobile Manufacturers (Rs. Bl) Indian Automobile Industry has Tremendous Potential to Grow Automobile Contribution 15 - 17% to Industrial Output - 10% 8 1148 836 595 662 ~5% 499 2001-02 2002-03 2003-04 2004-05 2005-06 (est) Indi
Slide 6: Truck penetration MHCV / m population
Road Development Program, Industrial and Infrastructure Development to drive the growth of Indian CV Industry 1000 Dramatic impact on volumes Stage 900 in initial stage of road development Germany 800 MHCV / m population Truck penetration 700 France UK 600 Turkey 500 Spain 4 400 Portugal Australia R
Slide 7: Growth and Structural changes in CV Industry
Growth and Structural changes in CV Industry Tata Ace 2.7% to further 100% Bus Industry growth 10.0% expand the lower end of the CV 50,300 80% 31.3% 16.9% market 45,500 43,500 13.3% 35,300 60% Small Buses 40% 35.9% 22,300 56.5% Large Buses 20% 23.9% 9.5% 0% 1996-97 2005-06 '01-02 '02-03 '03-04 '04-0
Slide 8: Indian Commercial Vehicles Industry
Indian Commercial Vehicles Industry Developments expected in near future New joint ventures • Scania, Man and International Truck & Engine Corp. to produce commercial vehicles, especially in the M/HCV category New players • DaimlerChrysler and Tatra Vectra introduce off-road commercial vehicles. Exi
Slide 9: Increasing income, urbanization, aspiration and wider product choice to drive growth in Indian PV Industry
Increasing income, urbanization, aspiration and wider product choice to drive growth in Indian P V Industry Saving-investment rates are high and improving 40% India : Urban Population as % of Total Population % of GDP 32 Savings Rate 30.1 Investment rate 30 28.9 29.1 35% 32% 28 27.2 26.5 30% 26 26 2
Slide 10: Developments expected in Indian PV Industry in the next five years
Developments expected in Indian P V Industry in the next five years Developments expected in near future India expected to emerge as a hub for small car manufacturing Suzuki and Hyundai Almost all players looking at expanding capacities Competition in diesel car segment to intensify New diesel vehic
Slide 11: Business Overview & Future Plans
Economic and Industry Overview Business Overview & Future Plans Business Results 11 11
Slide 12: Tata Motors continues to be a dominant automobile player in India with 28% market share
Tata Motors’ continues to be a dominant automobile player in India with 28% market share Share of Market 70% 63% 64% 64% 65% 66% LCV : 10% 62% 60% M/HCV : 15% 64% 60% 50% 50% 51% 40% 45% 43% 30% 24% 22% 22% 20% 20% 19% UVs : 15% 20% 10% 16% 18% 17% 16% Cars : 60% 15% 12% 0% FY02 FY03 FY04 FY05 FY06
Slide 13: Tata Motors' Future Plans
Tata Motors’ Future Plans TML Growth Plans (Next five years) Expand Vehicle Business Grow Non Vehicle Business Double Volumes Increase Revenue Share Increase non-cyclical income - Through New products - Market Expansion - Strategic partnership/Alliances Sustain Financial Strength - Continuous Cost R
Slide 14: Goal: Maintain / Improve market position across all vehicle segments
Goal : Maintain / Improve market position across all vehicle segments Commercial Vehicles Increase customer touch points • Panel Van • revenue • Passenger variant of Tata Ace share to 25% New Platforms across CV & PV • World Truck • New range • World Pickup Geographies – Thailand, Leveraging on low
Slide 15: Exploring Off-shore Markets for De-risking
Exploring Off – shore Markets for De-risking Exploring New Geographies • LATAM (Targeted) • Russia 25% • Thailand 16% Strengthening position in existing Markets • New Products • Deeper penetration International Alliances 2006-07 (April - Dec'06) 2010 • Thonburi JV in Thailand Share of International
Slide 16: Tata Motors aggressively pursuing its Cost reduction efforts
TATA Motors aggressively pursuing its Cost reduction efforts Cost Reduction Cost Reduction achieved Target FY06 :Rs 4.7 Bn, Rs 10 Bn FY07 (YTD) :Rs 2.8 bn Rs 10 Bn achieved 01 03 05 08 Outsourcing Productivity Improvement Value Engineering Process Improvement Target Costing Supplier base Rationaliza
Slide 17: Capex Plans
Capex Plans Proposed Capex Spending in next 3-4 yrs Rs 100 bn New Products Capacity Expansion & Sustenance Commercial vehicles Passenger vehicles World Truck New Indica Platform New LCV New UV Platform Ace Plant Small Car Panel Van The Company proposes to fund the capex through internal accruals and
Slide 18: Grow Non Vehicle Business
Grow Non Vehicle Business TELCON Construction equipment industry expanding at 35% CAGR CONSTRUCTION Dominant player in excavator segment ; 53% EQUIPMENT market share in FY06 Telcon to derive synergies from HCM in areas of manufacturing, marketing and product development HCM to outsource Machines and
Slide 19: Grow Non Vehicle Business
Grow Non Vehicle Business TATA MOTOR FINANCE TMF – 3rd largest player in the Indian auto financing market;TMLFSL created as subsidiary in Sept’06 VEHICLE FINANCING Average book size of Rs.61 Bn NIM ranges between 3.5 %– 5.5% Present penetration at 32% of captive vehicles Target : to achieve global b
Slide 20: Business Results
Economic and Industry Overview Business Overview & Future Plans Business Results 20 20
Slide 21: Revenue and Operating Margin – Annual Trend
Revenue and Operating Margin – Annual Trend Rs. bn Unconsolidated Rs. bn Consolidated 250 20% 250 20% 237 13.5% 227 12.5% 12.5% 12.2% 200 200 14.9% 14.2% 15% 195 13.9% 15% 12.2% 193 12.7% 12.5% 12.7% 150 150 159 12.5% 174 206 139 10% 10% 138 100 132 100 96 91 5% 5% 50 50 0 0% 0 0% FY03 FY04 FY05 FY0
Slide 22: Profit after Tax – Annual Trend
Profit after Tax – Annual Trend Unconsolidated Consolidated Rs. bn Rs. bn 18 17.1 16 15.3 15.2 13.4 15 13.6 12.4 12 12.1 10.7 12 8.1 9.1 9 8 6 3.0 3.2 4 3 0 0 FY03 FY04 FY05 FY06 Apr- Apr- FY03 FY04 FY05 FY06 Apr- Apr- Dec'05 Dec'06 Dec'05 Dec'06 CAGR (FY02 - FY06) : 72.0%% CAGR (FY02 - FY06) : 74.7
Slide 23: Optimizing Returns on Capital – Annual Trend
Optimizing Returns on Capital – Annual Trend ROCE ROE 31% 32% 32% (Non Annualised 29% 28% Figures) (Non Annualised 26% Figures) 20% 21% 20% 18% 17% 12% EVA ) ) 03 04 05 06 D D ) ) 03 04 05 06 TD TD YT YT FY FY FY FY FY FY FY FY ( ( (Y (Y 06 07 8,120 06 07 FY FY FY FY 6,600 (Non Annualised Figures) 4
Slide 24: Balance Sheet Size (Standalone)
Balance Sheet Size (Standalone) Rs bn 120 117.3 117.1 80 67.8 66.0 40 Rs bn 45 41.4 1.00 35.3 0 36 0.80 30th Sept'06 31st Dec'06 27 0.60 0.64 Gross Capital Employed Net Capital Employed 18 0.51 0.40 9 0.20 Net Capital employed is net of Vehicle Financing loans & receivables 0 0.00 30th Sept'06 31st
Slide 25: Subsidiary Performance – Annual Trend (contd…)
Subsidiary Performance – Annual Trend (contd…) TELCON TDCV Rs. bn Rs. bn Tata Motors acquired TDCV 15 19 on 31st March’05 12 17 15 16 12 13 9 13 9 11 8 11 11 6 7 7 5 3 3 1.20 3 0.61 0.46 0.21 0.41 0.87 0.28 0.05 0.67 0.52 0.04 0 -1 FY03 FY04 FY05(3 FY06 Apr- Apr- FY03 FY04 FY05 FY06 Apr- Apr- Dec'05
Slide 26: Subsidiary Performance – Annual Trend
Subsidiary Performance – Annual Trend HVAL TTL 7.20 1.4 1.4 1.4 TTL acquired INCAT 1.18 in FY06 0.99 1.0 3.30 2.17 0.50 1.72 0.43 0.46 0.93 1.33 0.30 0.30 -0.01 0.08 0.07 0.10 0.06 0.15 0.08 FY03 FY04 FY05 FY06 Apr- Apr- FY03 FY04 FY05 FY06 Apr- Apr- Dec'05 Dec'06 Dec'05 Dec'06 Rs. bn Turnover PAT R
Slide 27: Challenges ahead
Challenges ahead……… Overall commodity prices expected to remain high due to continued demand – supply gap. The buoyant domestic growth and increased raw material costs will continue to maintain an upward pressure on inflation. Close watch on the direction of crude oil price. Attract and retain talen
Slide 28: Thank You
Thank You www.tatamotors.com 28 28