Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Investor Presentation (November 2006)
38 slides from Tata Motors Passenger Vehicles's investor presentation, November 2006
Slide 1: Investor Presentation November'06
Tata Motors Ltd. Investor Presentation November’06 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; 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 • Current GDP growth rate at 8% 8 20-yr trend growth • The government has set a growth target of 9% 7 during the eleventh five year plan, with double digit (10%) GDP growth expected to propel the 6 Indian economy during the final years of the 5 plan
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 8-10% 1148 836 595 662 ~5% 499 2001-02 2002-03 2003-04 2004-05 2005-06 (est) India De
Slide 6: Truck penetration and road development
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: Structural changes in CV Industry
Structural changes in CV Industry 100% Tata Ace 90% created a new 80% segment 70% at the 60% lower end of the CV 50% market 40% 30% 20% 10% 0% 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 HCVs MCVs LCVs Ace With better roads and new technology, hub and spoke model
Slide 8: Buses Can Prove To Be A Key Growth Driver For Commercial Vehicles
Buses Can Prove To Be A Key Growth Driver For Commercial Vehicles Bus Industry growth 50,300 45,500 43,500 35,300 Small Buses 22,300 Large Buses '01-02 '02-03 '03-04 '04-05 '05-06 Buses as a % of CV in Russia & China is 40%-50% but only 13% in India Strong growth potential for Tata Motors 8 8
Slide 9: Indian Commercial Vehicles Industry
Developments expected in near future Indian Commercial Vehicles Industry New joint ventures • Scania, Man and International Truck & Engine Corp. to produce commercial vehicles. 207,446 MHCV 143,237 New players No. of players : 7 • DaimlerChrysler and Tatra Vectra introduce LCV off-road commercial ve
Slide 10: Drivers of 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 India: Urban Population as % of Total Population 35.00 % of GDP 32 Savings Rate 32.00 Investment rate 30 28 29.00 26 26.00 24 22 23.00 20 99-00 0
Slide 11: Indian P V Industry
Indian P V Industry Developments expected in near future Mini Cars ¾ India expected to emerge as a hub for small car Utility manufacturing Vehicles Suzuki and Hyundai 8% Compact MPV 17% Cars ¾ Almost all players looking at expanding capacities Premium 6% ¾ Competition in diesel car segment to inte
Slide 12: Growth Potential Available for Indian Automobile Industry
Growth Potential Available for Indian Automobile Industry 550 Cars Per Thousand 495 253 219 135 96 51 16 9 7 6 Germany Malaysia Brazil India China South Philippines France Korea Indonesia Mexico Thailand CVs Per Thousand 102 89 75 69 Consumer Loans / GDP (%) 51 43 55 24 21 60 52 15 12 4 50 B razil F
Slide 13: Economic and Industry Overview; Business Overview; Business Results
Economic and Industry Overview Business Overview & Future Plans Business Results 13 13
Slide 14: Tata Motors' Profile
Tata Motors’ Profile 9 Tata Motors with consolidated FY06 net revenue of US$ 5.4 billion is the largest company of the Tata Group. Tata Motors is the second largest manufacturing company and the largest automobile company in India by revenue. 9 As at 31st March 2006, Tata Motors market cap of over U
Slide 15: Tata Motors' Strategy for Growth
Tata Motors’ Strategy for Growth 2000-01 2005-06 1. Increasing Domestic Vehicle Business Revenues Rs 93 Bn CAGR 21% Rs 239 Bn IB IB 2. Growing International 7% 16% Business Non Vehicle 3. Growing Non– Vehicle 9% business • Construction Equipment Dom Vehicle • Engineering Design and 90% Non Vehicle S
Slide 16: Commercial Vehicles Growth Strategy
Commercial Vehicles Growth Strategy • Opening up of new segments • Panel Van, Microbus, Novus etc • Deeper penetration in existing markets • Proposed Launches in Commercial Vehicle Segment in the next five years • World Truck • World Pickup • World LCV • New bus • Setting up new facilities in domest
Slide 17: Passenger Vehicles Growth Strategy
Passenger Vehicles Growth Strategy • New Platforms to be launched in the next three years • Indica Platform • New Utility Vehicle Platform • Small car platform • New variants to be launched till the launch of new platforms • Tata Motors will strengthen alliance with FIAT and explore new areas of col
Slide 18: Small Car Project
Small Car Project • 4 door, 5 Seater, • >30 HP Rear Engine • Continuous Variable Transmission • Price Rs. 1 Lakh (~$2,000) – Global first • Launch expected towards end of calendar year 2008 • Initial production of 300 K units per year; mature market potential estimated at 1 million units per annum 1
Slide 19: Rationale for the Small Car Project
Rationale for the Small Car Project There is a demand gap for low cost and safe transportation 6 Apr-Jan 2004-05 Price Range (Rs) 250000 5 1.8 Lac to 2.5 Lac200000 4 150000 Millions 3 100000 Price and operating economics gap 2 50000 1 0.25 Lac to 0.6 Lac between 2 wheelers and A segment 0 0 Two Whee
Slide 20: Increasing Share of International Business
Increasing Share of International Business (Targeted) 30% 25% 25% 20% 16% 15% 10% 5% 0% IHFY07 2010 Share of International Business Revenues • Entry into new markets • Launch of new products • Increased penetration into existing markets 20 20
Slide 21: Tata Daewoo Commercial Vehicles (Korea)
Tata Daewoo Commercial Vehicles (Korea) Rs mn 1HFY06 1HFY07 Growth Turnover 6843 10,322 +51% PBT 279 610 +119% PAT 211 444 +110% Around 24% HCV Market Share in Korean market Exports : 1,394 units (up 136% y-o-y); forming over 2/3rd of Korea’s Heavy Truck exports Entered MCV segment in Jan’06.
Slide 22: TELCON
TELCON Rs mn 1HFY06 1HFY07 Growth Continued dominance in excavator segment with market share of 53% Turnover 5,669 7652 +35% Presently, market share in wheel loader PBT 439 1044 +138% is at 18% and in backhoe loaders is at PAT 278 682 +145% 10% Construction equipment industry expanding at 30-3
Slide 23: Tata Technologies
Tata Technologies Rs mn 1HFY06 1HFY07 Growth Turnover 1081 4695 +334% PBT 64 53 -17% PAT 45 41 -9% Tata Technologies now well poised in Engineering design and PLM space with the right onsite - offshore mix. Access to a broader customer base in the automotive, aerospace and manufacturing industri
Slide 24: Auto Components
Auto Components HVTL HVAL Rs mn 1HFY06 1HFY07 Growth Rs mn 1HFY06 1HFY07 Growth Turnover 574 779 +36% Turnover 347 443 +28% PBT 195 295 +51% PBT 158 178 +13% PAT 127 193 +52% PAT 108 125 +16% Plans to unlock value HVAL/HVTL will support Tata motors in its advanced power train implementation stra
Slide 25: Economic and Industry Overview; Business Overview; Business Results
Economic and Industry Overview Business Overview & Future Plans Business Results 25 25
Slide 26: Net Revenue and Operating Margin – Annual Trend
Net Revenue and Operating Margin – Annual Trend Rs. bn Unconsolidated Rs. bn Consolidated 250 20% 250 20% 237 200 200 14.9% 14.2% 206 15% 195 13.9% 15% 12.5% 174 11.3% 11.7% 150 150 13.5% 12.5% 12.5% 12.2% 12.5% 12.5% 139 145 10% 10% 132 100 100 124 96 99 91 87 5% 5% 50 50 0 0% 0 0% FY03 FY04 FY05 F
Slide 27: Profit after Tax – Annual Trend
Profit after Tax – Annual Trend Unconsolidated Consolidated Rs. bn Rs. bn 18 17.1 16 15.3 15 13.6 12.4 12 12 8.2 9.1 9.2 8.1 9 8 6.1 6.5 6 3.0 3.2 4 3 0 0 FY03 FY04 FY05 FY06 1HFY06 1HFY07 FY03 FY04 FY05 FY06 1HFY06 1HFY07 27 27
Slide 28: Optimizing Returns on Capital – Annual Trend
Optimizing Returns on Capital – Annual Trend ROCE ROE 35% 31% 35% 32% 32% 30% 29% 28% 30% 26% 25% 25% 20% 18% 20% 15% 12% 15% 10% 10% 5% 5% 0% 0% FY03 FY04 FY05 FY06 FY03 FY04 FY05 FY06 28 28
Slide 29: Financial Performance (Consolidated) - 2Q FY07
Financial Performance (Consolidated) - 2Q FY07 Rs mn 2Q FY06 2Q FY07 Gross Revenue 62,437.4 86,762.3 Net Revenues 42% Net Revenue 54,288.8 77,026.6 EBITDA 6,806.1 9,221.9 EBITDA 36% EBITDA Margin 12.54% 11.97% Other Income 592.5 950.5 PBT 36%; Net Interest 495.2 1,008.7 Dep. & Amortisation 1,4
Slide 30: Financial Performance (Consolidated) - 1H FY07
Financial Performance (Consolidated) - IH FY07 Rs mn 1HFY06 1H FY07 Gross Revenue 114,125.4 165,054.7 Net Revenues 46% Net Revenue 99,069.0 144,736.0 EBITDA 12,387.1 16,962.0 EBITDA 37% EBITDA Margin 12.50% 11.72% Other Income 695.4 1,123.6 PBT 42%; Net Interest 1,033.3 1,793.1 Dep. & Amortisa
Slide 31: Financial Performance (Standalone) - 2Q FY07
Financial Performance (Standalone) - 2Q FY07 Rs mn 2Q FY06 2Q FY07 Net Revenues 37% Gross Revenue 55680.7 75892.9 EBITDA 32% Net Revenue 47813.1 65717.9 EBITDA 5760.4 7583.2 PBT 29%; EBITDA Margin 12.0% 11.5% Other Income 580.4 848.3 PAT 31%; Net Interest 460.6 955.8 Dep. & Amortisation 1272
Slide 32: Financial Performance (Standalone) - 1H FY07
Financial Performance (Standalone) - 1H FY07 Rs mn 1HFY06 1H FY07 Gross Revenue 101,212.8 142,979.4 Net Revenues 42% Net Revenue 86,811.8 123,552.0 EBITDA 10,617.7 13,949.6 EBITDA 31% EBITDA Margin 12.2% 11.3% Other Income 1,163.3 1,707.4 PBT 33%; Net Interest 970.7 1,681.3 Dep. & Amortisation
Slide 33: Working Capital
Working Capital Inventory Receivables Days of sale Days of sale 60 15 40 38 35 40 10 8 8 7 20 5 0 0 30th Sept'05 30th June'06 30th Sept'06 30th Sept'05 30th June'06 30th Sept'06 Working Capital still continues to be tightly managed 33 33
Slide 34: Balance Sheet Size
Balance Sheet Size Rs crs 12,000 11,730 10,313 8,000 We have financing loans and receivables to the 6,599 5,266 extent of Rs. 5,131 crs as on 30th Sept ‘06 4,000 Rs crs 4136 0 3200 3079 0.70 30th June'06 30th Sept'06 0.60 2400 0.64 Gross Capital Employed Net Capital Employed 0.50 0.52 0.40 1600 0.30
Slide 35: Performance Highlights of Tata Motor Finance
Performance Highlights of Tata Motor Finance Units Financed and Market Share Disbursals Rs bn 120,000 35% 31.0% 55 100,000 23.8% 30% CAGR of 48% 42 18.3% 25% 22.3% 80,000 20% 34 16.3% 96,247 60,000 14.8% 68,731 15% 23 21 73,905 67,356 53,130 40,000 16 10% 35,316 20,000 5% 0 0% FY03 FY04 FY05 FY06 1H
Slide 36: 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 37: The six months ahead
The six months 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. Infrastructure development and growth in Industrial production
Slide 38: Thank You
Thank You www.tatamotors.com 38 38