Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — FY2009 Earnings Presentation
33 slides from Tata Motors Passenger Vehicles's earnings presentation, Jun 26, 2009
Slide 1: Consolidated Business Results for FY09 Analyst Meet
Consolidated Business Results for FY09 Analyst Meet 26th June, 2009 INVESTOR RELATIONS 1 1
Slide 2: Analyst Meet Agenda: Consolidated Financials
Consolidated Financials • Consolidated P&L Highlights Subsidiary Highlights • Consolidated Balance Sheet Update on Joint Ventures Analyst Meet 26th June, 2009 INVESTOR RELATIONS 2 2
Slide 3: Consolidated P&L: Highlights
Consolidated P&L : Highlights Generated Consolidated Cash profit at Rs.1065 Crs despite impact of severe economic slowdown Rs Crs FY08 FY09 % change Gross Revenue 40341 74151 83.8% Net Revenue 35660 70939 98.9% EBITDA 4249 2197 -48.3% EBITDA Margin 11.9% 3.1% (880) bps Other Income 267 799 199.3% Ne
Slide 4: Consolidated vs. Standalone: FY09 P&L Highlights
Consolidated vs. Standalone: FY09 P&L Highlights Rs Crs Consolidated Standalone Gross Revenue 74151 28599 Net Revenue 70939 25661 EBITDA 2197 1752 Cash Profit 1065 2004 PBT (2129) 1014 Net Profit (2505)* 1001 * Net profit is after share of minority interest and profit/(loss) in respect of investment
Slide 5: Consolidated Balance Sheet: Debt as on March 31st
Consolidated Balance Sheet : Debt as on March 31st Tata Motors Debt-Equity ( Rs. Crs ) including SPV loan Gross Debt – Equity 1.1 3.8 1.9 1.4 6,344 10,229 USD 2 Bn bridge loan 5,210 before refinancing 13,166 TML - India TMFL JaguarLandRover Jaguar Land Rover U.K (SPV) INVESTOR RELATIONS 5 5
Slide 6: Post Refinancing Long Term Debt Repayment Profile
Post Refinancing Long Term Debt Repayment Profile As of May 31st Rs. Crs Tata Motors Standalone* 11593 Jaguar Land Rover UK 4709 Total Long term 16302 (Proforma ) 39% 19% 11% 12% 11% 8% 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 * includes repayment of outstanding FCCBs and CARs ( % of long term debt rep
Slide 7: Analyst Meet: Subsidiary Highlights
Consolidated Financials • Jaguar Land Rover Tata Daewoo • Telcon Tata Technologies Subsidiary Highlights • Tata Motor Finance HVAL / HVTL Update on Joint Ventures Analyst Meet 26th June, 2009 INVESTOR RELATIONS 7 7
Slide 8: Jaguar Land Rover Executive Summary
Jaguar LandRover Executive summary Market conditions continue to have an adverse impact on volumes. Wholesale volume over the past ten months is down 32% versus the comparable period for the prior year In response Jaguar Land Rover have focused on aligning production with demand, reducing costs and
Slide 9: Jaguar Land Rover volume history
Jaguar Land Rover volume history Wholesale volumes – Total world Units ‘000s Note: Jaguar (4)% (10)% Land Rover (39)% 288.5 (32)% 259.7 246.7 167.3 CY 2007 CY 2008 Jun 07 - Mar 08 Jun 08 - Mar 09 Jaguar Land Rover Jaguar 55.9 72.2 48.8 47.0 Land Rover 232.6 187.5 197.9 120.3 INVESTOR RELATIONS 9 9
Slide 10: Retail volumes CY 2007 vs. CY 2008
North America UK Retail volumes (30)% (17)% 70.0 CY 2007 69.4 vs. 48.7 57.4 CY 2008 Units ‘000s CY 2007 CY 2008 CY 2007 CY 2008 LR 53.4 32.7 LR 50.7 37.0 Jaguar 16.6 16.0 Jaguar 18.7 20.4 Europe (excl Russia) Russia China (21)% 88.1 60% 21.5 12.5 63% 69.9 13.4 7.6 CY 2007 CY 2008 CY 2007 CY 2008 CY
Slide 11: Retail volumes Jun'07 – Mar'08 vs. Jun'08 – Mar'09
Retail volumes North America UK Jun’07 – Mar’08 2007 55.6 (37)% 59.1 (31)% vs. 34.9 40.5 Jun’08 – Mar’08 2009 Units ‘000s Jun 07 - Mar 08 Jun 08 - Mar 09 Jun 07 - Mar 08 Jun 08 - Mar 09 LR 42.8 23.5 LR 43.8 25.2 Jaguar 12.8 11.4 Jaguar 15.3 15.3 Europe (excl Russia) Russia China 12% 2% (37)% 73.0 15
Slide 12: Awards
Awards Jaguar No 1 automotive brand – BusinessWeek ‘Customer Service Champs’ Jaguar No 1 in leading U.S. J D Power Vehicle Dependability and Sales Satisfaction surveys 45 major consumer and product awards since June 2008 Auto Express ‘Car of The Year’ 2008 - Jaguar XF WhatDiesel ‘Car of the Year’ –
Slide 13: Business transformed since 2003
Business transformed since 2003 Brand and product – major improvement: • Jaguar “Beautiful Fast Cars” strategy - XK, XF (and new XJ 2009) • Land Rover portfolio – all new Discovery, Range Rover Sport, Freelander, plus product upgrades • Improved powertrains • Environmental innovation – commitment to
Slide 14: Severe Meltdown in H2 2008; Stabilising in 2009
Severe Meltdown in H2 2008 ; Stabilising in 2009 1st Half 2nd Half 1st Half 2008 2008 2009 • Industry volumes – down 25% -35% • Competitive incentives – up 50% • Residual values – down 15-25 pts • Raw material • Currency (£, $) – 25% • Currency (Euro, Rouble, Yen) – 20% • Consumer credit availabilit
Slide 15: Global OEMs witness significant profit reduction
Global OEMs witness significant profit reduction Profit Before Tax 9181 3873 2795 2989 2437 761 1080 896 351 162 NA (653) (560) (281) Dai ml er BMW gr oup Renaul t Gr oup PSA Peugeot Ci tr oen Toyota Honda JLR ( mn € ) ( mn € ) ( mn € ) ( mn € ) ( bn ¥ ) ( bn ¥ ) ( mn £ ) 2007/FY08 2008/FY09 INVESTO
Slide 16: Income statement for the period Jun'08 – Mar'09
Income statement for the period Jun’08 – Mar’09 Jaguar and Land Rover (£ mils) INCOME Sale of products and other income from operations £ 4,949 Dividend and other income 24 Total income £ 4,974 EXPENDITURE Purchase of products for sale and raw materials and components £ 3,164 Payments and provision
Slide 17: Balance Sheet Highlights
Balance Sheet Highlights Final purchase consideration of JLR was £1,279m ($2,524m) including net cash on balance sheet As part of the acquisition: • £487m of intellectual property rights were contributed / bought into the operating company • Halewood facility/assets brought into Jaguar Land Rover fo
Slide 18: Successful transition from Ford
Successful transition from Ford National sales companies • JLR is currently in the process of establishing operations in markets where they have previously operated as part of Ford legal entities • This transition is progressing to plan with 15 markets successfully being transitioned since acquisiti
Slide 19: Funding arrangements and pensions revaluation
Funding arrangements In the period to March 2009, cash flow from financing activities was £821 million, which comprised £686 million of financing provided to Jaguar Land Rover by the parent company, Additional borrowings of £135 million were also taken from other sources. Since March 2009 Jaguar Lan
Slide 20: JLR response/cash conservation
JLR response/cash conservation Alignment of production with demand: • Single shifts and down time at all three UK assembly plants Actions to reduce working capital (June 2008 – March 2009): • Supplier payment terms extended from 45 to 60 days in line with industry standard. • Receivables reduced by
Slide 21: Tata Daewoo Commercial Vehicles witnessed 23% decline in volumes
Tata Daewoo Commercial Vehicles witnessed 23% decline in volumes Total Volume Sales 11899 9137 (23%) MHCV Market Share Domestic 33.5% 8587 (43%) 27.1% 4857 4,280 +29% Export 3,312 FY08 FY09 FY08 FY09 Market illiquidity and high interest rates impede domestic market performance Despite challenging en
Slide 22: Tata Daewoo Commercial Vehicles: Financial Highlights and Outlook
Tata Daewoo Commercial Vehicles : Financial Highlights and Outlook ( Crs ) FY08 FY09 %change Net Revenues 3070 2541 (17%) EBITDA 281 222 (21%) % of Revenues 9.2% 8.7% ( 50 ) bps Net Profit 159 111 (30%) % of Revenues 5.2% 4.4% (80) bps Outlook Company targets to improve performance through aggressiv
Slide 23: Construction Equipment Business – Telcon
Construction Equipment Business – Telcon [53%] 4982 [ Mkt Shares ] [ 53% ] Volume 3707 [ 10% ] FY08 FY09 2135 [ 10% ] [ 17.3% ] [ 17.5% ] 1060 503 335 Excavator Wheel Loader Back hoe Loader 10 years of leadership in Indian Construction equipment market Volumes decline by 33%, impacted by Mini/ Midi
Slide 24: Telcon: Financial Highlights and Outlook
Telcon : Financial Highlights and Outlook ( Crs ) FY08 FY09^ %change Net Revenues* 2411 2146 ( 11 ) % EBITDA* 496 135 ( 73 )% % of Revenues 20.6% 6.3% (1430 ) bps Net Profit 324 45 ( 86 )% % of Revenues 13.4% 2.1% ( 1130 ) bps *excluding Other Income The financial results for the year ended March 31
Slide 25: Engineering Design Services: TATA Technologies
Engineering Design Services : TATA Technologies Revenue Distribution* APAC, 30% Customer Analysis Revenue % FY08 FY09 Europe, 27% Top 1 customer 15.5% 19.57% North Top 5 customers 36.5% 36.9% America, Top 10 customers 47.5% 48.7% 43% * Dollar revenue Key Wins • Won a multi-year multi-million dollar
Slide 26: Tata Technologies: Financial Highlights and Outlook
Tata Technologies : Financial Highlights and Outlook ( Crs ) FY08 FY09 %change Net Revenues* 1084 1202 11% EBITDA* 60 81 35% % of Revenues 5.6% 6.8% 120 bps Net Profit 30 66 120% % of Revenues 2.8% 5.5% 270 bps *excluding Other Income Refers to Consolidated results Doubled PAT with sustained focus h
Slide 27: Vehicle Financing: Tata Motor Finance
Vehicle Financing : Tata Motor Finance TMF Disbursement ( Rs. Cr ) 9620 7415 FY08 FY09 Combined disbursals ( TMF ) for FY09 were Rs. 7,415 Cr a decline of 23% from Rs 9,620 Cr in FY08 Disbursal decline in line with reduction in sales of Tata Motors The book size at the end of March’09 for TMFL and T
Slide 28: Vehicle Financing: Financial Highlights and Outlook
Vehicle Financing : Financial Highlights and Outlook ( Crs ) FY08 FY09 %change Net Revenues* 719 815 13% Operating Income* (85) (349) ( 311 ) % % of Revenues (11.8)% (42.8)% (3100)bps Net Profit 45 ( 121 ) ( 369) % % of Revenues 6.3% ( 14.8 )% (2110) bps *excluding other Income and after deducting g
Slide 29: Auto Components: HVAL and HVTL
Auto Components : HVAL and HVTL HVAL HVTL ( Crs ) FY08 FY09 %change ( Crs ) FY08 FY09 %change Net Revenues* 200 155 ( 23% ) Net Revenues* 192 143 ( 26 ) % EBITDA* 112 75 ( 33 ) % EBITDA* 98 60 (39 ) % % of Revenues 56.0% 48.4% (760) bps % of Revenues 51.0% 42.0% (900) bps Net Profit 63 28 ( 56 ) % N
Slide 30: Analyst Meet: Update on Joint Ventures
Subsidiary Highlights • Tata Motors- Fiat Update on • Tata Motors – Marcopolo Joint Ventures • Tata Motors Thailand Consolidated Financials Analyst Meet 26th June, 2009 INVESTOR RELATIONS 30 30
Slide 31: Joint Venture Updates: Tata Motors - Fiat
Joint Venture Updates Tata Motors - Fiat JV Production facilities fully operational for Cars (including Paint shop) and Powertrains. Installed capacity - Powertrains 350,000, Cars 200,000 Over 13,000 Cars manufactured during the year Over 25,100 Powertrains manufactured during the year ( both petrol
Slide 32: Joint Venture Updates: Marcopolo and Thailand
Joint Venture Updates Tata Motors – Marcopolo JV Successfully completed the first order of 650 low floor buses for DTC from the Lucknow plant Secured a repeat order of 1625 buses Dharwad Plant which will be the largest In the World, with a capacity of 30,000 buses per annum, commenced its operations
Slide 33: Reaffirming Business and Financing strategy
Reaffirming Business and Financing strategy Economic revival and liquidity condition key to short term growth Reduction of operating costs Cash flow focused short term business plans Pursue Long term plans • Prioritize R&D, focus on new products • Full availability of Nano capacity • Strict control