Tata Motors Limited · NSE:TMCV
Tata Motors — Investor Presentation (October 2021)
24 slides from Tata Motors's investor presentation, Oct 12, 2021
Slide 1: Exchange filing cover letter: submission of investor presentation
BSE Limited Listing Compliance Department First Floor, New Trading Ring National Stock Exchange of India Ltd. Rotunda Building, P J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Mumbai 400 001 Bandra(E), Mumbai 400 051 Kind Attn: Mr Khushro A. Bulsara Kind Attn: Mr Lokesh Bhandar
Slide 2: Tata Motors Passenger Electric Vehicles Business
Tata Motors Passenger Electric Vehicles Business Investor Presentation 12 October 2021 Shailesh Chandra & PB Balaji 12 October 2021 1
Slide 3: TML EV journey so far
TML EV journey so far © Copyright, Confidential, Tata Motors Limited 2
Slide 4: EV industry has witnessed a growth of 1.5-2X every year between FY17-FY21
EV industry has witnessed a growth of 1.5-2X every year between FY17-FY21 EV Industry Growth Growth Drivers 15-16K 1. Favourable Govt. policies ( e.g FAME II, other fiscal and non fiscal incentives ) 2. Launch of aspirational mainstream EVs by OEMs ( e.g Nexon EV) 5910 3. Positive WoM through existi
Slide 5: Tata Motors is leading the EV revolution in India
Tata Motors is leading the EV revolution in India #1 312km 400+ 50 million km Selling EV in India Certified EV range1 Charging stations2 Real world experience –Tata Nexon EV 70%+ 9.9 secs 60mins 2,500 Indian EV market share 0–100 kmph1 Fast charge Potential customer (FY21) (0–80%)1 touchpoints 15+ A
Slide 6: Holistic offering of product, network & charging infra
Holistic offering of product, network & charging infra Carefully curated offerings for Fleet segment ; Exciting, aspirational and accessible offerings for Personal segment Xpress- T (LV) : 162 Km and 213 Km, 21 kWh Nexon EV (HV): 312 Km, 30.2 kWh Tigor EV (HV): 306 Km, 25.9 kWh Cites Touchpoints Cha
Slide 7: TML EV business continues to grow exponentially; Market leadership achieved
TML EV business continues to grow exponentially ; Market leadership achieved Growth potential is much higher Volume and market share Growth Growth Potential 131 349 1325 4218 xxxx 80% 71% 12000 70% 10000 60% 47% 50% 8000 Demand supply Gap 40% Nexon EV 6000 30% 4000 18% 414 478 20% 11% 2000 3804 2863
Slide 8: Project Helios – Winning Proactively in EV
Project Helios – Winning Proactively in EV Writing the India EV story © Copyright, Confidential, Tata Motors Limited 7
Slide 9: Govt. initiatives and demand drivers provide further impetus to EV industry
Govt. initiatives and demand drivers provide further impetus to EV industry Government incentives Demand drivers • Stringent emission roadmap will necessitate EV State EV Policies PLI schemes adoption by OEMs • TCO parity with ICEs will further propel EV adoption • Better customer options as OEMs in
Slide 10: TML to take the lead in accelerating this exciting journey
TML to take the lead in accelerating this exciting journey • Expand portfolio of offering India specific products with different body styles and driving Product ranges ( 10 EVs by FY26) • Transition to Modular Multi-energy platform from Conversion EVs • Expand beyond existing micro-markets ( 100+ ci
Slide 11: Helios: Business rationale
Helios : Business rationale PV subsidiarization, March 2020 PV (Strategy - Win Sustainably) EV (Strategy – Win Proactively) • Differentiated focus for CV, PV to help each • Aim: Double digit market share, High single digit • Aim: Lead the EV charge in the Indian market realise their potential EBITDA
Slide 12: Key aspects of Helios
Key aspects of Helios Create a pure play EV • TML EVCo to be created as an asset lite new subsidiary of TML 1 company to focus on • Will house all dedicated EV talent and design capabilities of TML passenger mobility • Aim to attract top notch global talent Step up investments • TML EVCo to invest i
Slide 13: Transaction structure
Transaction structure Proposed structure and perimeter External Tata Motors Limited Investors (listed company) 11-15% 85-89% 100% Tata Motors EV (EVCo) Tata Motors PV (PVCo) • EV product Focus • PV Product Focus • Build and own future IPs for EV • Own existing assets (IPs, Mfg., Brands, Network) • C
Slide 14: TPG Rise to invest $1B at a valuation of upto $9.1B
TPG Rise to invest $1B at a valuation of upto $9.1B Process involved selective outreach to marquee investors • TPG Rise Climate to be the lead investor • TPG Rise Climate is a $7Bn fund with a focus on investing in companies that enable carbon reduction in a quantifiable way • ADQ to be a co-investo
Slide 15: Key terms
Key terms FUNDING • TPG Rise commitment of INR 7,500 Cr ($1 Bn) – 50% by March 22 post set-up of the EVCo $1B equity funding – Balance 50% by Q3 2022 on achieving “Go Live” actions INSTRUMENT • CCPS, compulsory convertible preference shares Convertibles linked to long • Converts to ordinary equity s
Slide 16: Project Helios – Winning Proactively in EV: Additional Material
Project Helios – Winning Proactively in EV Additional Material © Copyright, Confidential, Tata Motors Limited 15
Slide 17: Key to growth: Creating awareness and aspiration while bursting myths
Key to growth : Creating awareness and aspiration while bursting myths Creating awareness & aspiration Building credibility by bursting myths State of the art EV tech brand Ziptron launch 1st Electric 4 W to travel from Manali to Khardungla (Leh) An immersive drive experience of the Nexon EV #TheUlt
Slide 18: Key to growth: Sharp customer segmentation and focus
Key to growth : Sharp customer segmentation and focus Identifying customer archetypes Prioritization of focus cities Micro-market mapping Environmentally conscious Ludhiana Chandigarh Delhi NCR Faridabad Jaipur Lucknow Kanpur Well travelled Gandhinagar Kolkata Ahmedabad Surat Nagpur Mumbai Tech and
Slide 19: Key to growth: Localisation of key components
Key to growth : Localisation of key components Better cost optimization and greater control over supply chain Increase in localised supply to drive down costs Partnerships with marquee suppliers FY21 FY25 ~60% >85% localization localization proximity multiple 35% • BIW • BMS from manufacturing locat
Slide 20: Key to growth: Ecosystem solutions provided by TATA UniEVerse
Key to growth : Ecosystem solutions provided by TATA UniEVerse Could create holistic solutions that gave comfort to customers and drove adoption > India's leading player in the EV charging space > Cell development and local mfg. > Home charging installation support in all cities > Technical partner
Slide 21: Stringent emission roadmap will necessitate EV adoption by OEMs
Stringent emission roadmap will necessitate EV adoption by OEMs Corridor for potential CO2 regulation Required powertrain portfolio Year 2015 2020 2025 2030 180 Increase in the regulation of CO2 172 166 Regulation World of today 150 corridor 135 144 130 Less than 10% EVs required 121 113 g/km 105 10
Slide 22: TCO parity with ICEs will further propel EV adoption
TCO parity with ICEs will further propel EV adoption Total Cost of Ownership 1 B2B1 ( with FAME subsidy) Total Cost of Ownership 2 B2C2 EVs vs Diesel EVs vs Diesel EVs vs CNG EVs vs Petrol Value in ₹ lakh Value in ₹ lakh ₹ 1.0 ₹ 1.1 ₹ 0.6 ₹ 0.1 -₹ 1.0 -₹ 0.2 -₹ 0.6 -₹ 1.4 -₹ 6.1 -₹ 2.1 -₹ 7.1 -₹ 8.4
Slide 23: Customer options will increase as OEMs introduce long range EVs
Customers options will increase as OEMs introduce long range EVs Upcoming EV models Average on board energy 26 24 18 40 30 10 16 FY21 FY22 FY23 FY24 FY18-20 FY20-22 FY22-24 © Copyright, Confidential, Tata Motors Limited 22
Slide 24: Investments across the value chain will unlock charging infrastructure
Investments across the value chain will unlock charging infrastructure Value Chain Outlook : Public Fast Chargers HW equipment provider 45-50K Infrastructure Hyderaba OEM owner d Metro Dealerships 25-30K Charging station operator ~1000 CY21 CY24 CY26 Charging network provider © Copyright, Confidenti