Tata Motors Limited · NSE:TMCV
Tata Motors — Q4 FY2022 Earnings Presentation
58 slides from Tata Motors's earnings presentation, May 13, 2022
Slide 1: Letter to BSE and NSE submitting revised investor presentation
BSE Limited National Stock Exchange of India Ltd. First Floor, New Trading Ring Listing Compliance Department Rotunda Building, P J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Mumbai 400 001 Bandra(E), Mumbai 400 051 May 13, 2022 Sc - 16778 Dear Sirs, Ref: ISIN: INE155A01022 –
Slide 2: Tata Motors Group Results for quarter and full year ended 31st March 2022
Tata Motors Group Results for quarter and full year ended 31 st March 2022
Slide 3: Safe harbour statement
Safe harbour statement Other Details • Presentation format : The results provided represent the details on Statements in this presentation describing the objectives, projections, consolidated segment level. The operating segment comprise of Automotive estimates and expectations of Tata Motors Limite
Slide 4: Product and other highlights for the year – Tata Motors
Product and other highlights for the year – Tata Motors $1 BN fund raise in its Passenger Electric Unveiled 21 new Commercial vehicles Making strides in developing Launch of the all-new, revolutionary Vehicle business, first tranche complete across all segments hydrogen fuel cell technology Ace EV,
Slide 5: Product and other highlights for the year – Jaguar Land Rover
Product and other highlights for the year – Jaguar Land Rover Global chip shortage significantly New Range Rover launched Announced Science Based Targets to Breakeven in Q4 below longer term constrained volumes reduce carbon emissions 350k annual target Record order bank of 168k JLR most improved OE
Slide 6: Q4: Revenue ₹78.4KCr, EBITDA 11.2%, PBT(bei) ₹0.4KCr
Q4: Revenue ₹ 78.4KCr, EBITDA 11.2%, PBT(bei) ₹ 0.4KCr Sequential recovery in margins despite semiconductor and inflation headwinds F Y 2 2 | C o n s o l i d a t e d | IndAS, ₹ K C r Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y Global wholesales (K units) 213 252 286 335 334 0.2% 1,
Slide 7: EBIT 3.2%; Net Auto Debt ₹48.7 KCr
EBIT 3.2%; Net Auto Debt ₹ 48.7 KCr Lower JLR volumes and commodity pressures impacted EBIT. Net Auto Debt reduced by ₹ 11.7 KCr in Q4 Q 4 F Y 2 2 | C o n s o l i d a t e d | IndAS Revenue ₹ KCr (21.6) 0.1 1.9 9.4 88.6 78.4 (24.3)% 10.6% 0.1% 2.1% (11.5)% decline Q4FY21 Volume & Mix Price Translatio
Slide 8: Jaguar Land Rover Automotive PLC
JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL Chief Financial Officer Results for the quarter and full year ended 31st March 2022 7
Slide 9: Q4 cash flow positive, profitability flat QoQ
Q4 cash flow positive, profitability flat QoQ Higher sales, lower VME and warranty, offset by New Range Rover changeover and material cost F Y 2 2 | I F RS , £ m Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y Retails (K units) 124.5 92.7 80.1 79.0 123.5 (36.0)% 376.4 439.6 (14.4)% Rev
Slide 10: Q4 & FY22 Performance highlights
Q4 & FY22 Performance highlights • Volumes remain constrained by semiconductor supply Volume & • Retails were flat, whilst wholesales rose by 11% compared to the prior quarter Revenue • Strong model family mix overall, but Range Rover lower due to new model changeover • Further order bank growth com
Slide 11: Q4 retails flat QoQ with strong model family mix
Q4 retails flat QoQ with strong model family mix overall But Range Rover model down 5k as new model ramps up and prior model runs out F Y 2 2 | M o d e l F a m i l i e s | R e t a i l s | U n its in 0 0 0 ’s 123.5 61 40 80.1 79.0 37 QUARTER 22 23 14 17 16 14 15 12 12 FULL YEAR 10
Slide 12: Retails up QoQ; electrification mix 66% for the year
Retails up QoQ in UK, North America and overseas regions Electrification mix increased to 66% for the year F Y 2 2 | R e t a i l s | U n its in 0 0 0 ’s JLR POWERTRAIN UK N. AMERICA EUROPE CHINA OVERSEAS MIX(RETAILS) 31 26 28 38% 31% 36% 64% electrified 22 24 19 20 20 15 16 16 13 12 11 11 56% 53% 50
Slide 13: Profitability flat QoQ – EBIT 2%, PBT £9m
Profitability flat QoQ – EBIT 2%, PBT £9m* Higher sales, lower VME and warranty, offset by Range Rover changeover (-7k wholesales) Q 4 F Y 2 2 | I F RS , £ m Volumes 128 VME (1.6)% Material D&A (29) Operational 41 (77) 14 to (0.9)% cost FX Mix (198) Inventory 20 Manu- Realised FX 14 (31) Other 50 fa
Slide 14: Profitability down YoY – primarily reflects semiconductor supply
Profitability down YoY – primarily reflects semiconductor supply Lower capitalisation, end of furlough, other costs and revaluation, offset by lower VME F Y 2 2 | I F RS , £ m Volumes (826) VME Eng’g Operational Material (332) 39 (4.9)% to 612 (184) FX cost capitalised Mix 270 (1.8)% Realised FX Fur
Slide 15: Breakeven in Q4 below longer term 350k annual target
Breakeven in Q4 below longer term 350k annual target U n its 0 0 0 ’ s 660 540 400 Annualised 360 350+ Breakeven 300 Wholesales FY19 FY20 FY21 H1 FY22 H2 FY22 FY23 Quarterly Breakeven Wholesales 165 135 100 90 75 c. 85 14
Slide 16: Free cash flow positive £340m in Q4
Free cash flow positive £340m in Q4 Full year cash outflow of £(1,156)m reflects volume related working capital Q4 FY22 | IFRS, £m D&A 509 719 (64) 664 (469) 145 340 9* PBT Non-cash Cash Cash profit Investment Working Free and other Tax after tax spending capital cash flow FY22 (412) 2,775 (138) 2,2
Slide 17: Total Q4 investment £469m; engineering capitalisation rate
Total Q4 investment £469m; engineering capitalisation rate 29% Target FY23 investment spending c. £2.6b Q4 FY22 | IFRS, £m 130 469 241 339 98 Capitalised Expensed Total Capital Total R&D R&D R&D Investment Investment FY22 455 839 1,294 742 2,036 16
Slide 18: Business Update
| Witavanil BUSINESS UPDATE
Slide 19: Business environment continues to be challenging
Business environment continues to be challenging Product, demand, pricing and cost opportunities to improve financial results in FY23 Chip & other supply constraints Covid lockdowns in China Inflation impact on JLR costs and Conflict in Ukraine requiring close management consumer spending power Grea
Slide 20: Expect chip shortage to continue in 2022 with gradual improvement
Expect chip shortage to continue in 2022 with gradual improvement Supply chain pressures in China due to Covid are expected to limit improvement in Q1 FY23 U n its in 0 0 0 ’s WHOLESALE VOLUMES - Chip supply continued to improve in Q4 in line with expected gradual increases in supply 123 - Actively
Slide 21: Ukraine conflict has had limited impact on sales and supply chain
Ukraine conflict has had limited impact on sales and supply chain Providing humanitarian support for employees impacted SALES IMPLICATIONS • Sales volumes not materially impacted by the conflict: historically less than 2.5% combined sales volumes in the two countries • New vehicle sales into Russia
Slide 22: China sales constrained by chip supply but KPIs strong
China sales constrained by chip supply but KPI’s strong Recent Covid lockdowns impacting sales and suppliers in Q1 FY23 SALES QUALITY RETAILER STOCK LEVEL (6.7)% 7,235 (11.1)% 5,698 5,450 5,356 (16.6)% (17.1)% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 LOCAL REGISTRATION RATE RETAILER RETURN ON SALES 2
Slide 23: Strong demand despite constraints – record order bank
Strong demand despite constraints -- record order bank of 168k units Order bank for New Range Rover increased from 31k to 46k ORDER BANK 168 155 125 110 41 37 46 29 33 31 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 New Range Rover Defender Other 22
Slide 24: New Range Rover Sport revealed on 10 May 2022
New Range Rover Sport revealed on 10 May 2022 Sales expected from Q2 FY23 New Range Rover Sport redefines sporting luxury, combining instinctive performance with trademark refinement, progressive design sophistication and connected convenience. HIGHLIGHTS • Dynamic luxury - Third generation of Range
Slide 25: Refocus delivered £1.5bn of value in the year
Refocus delivered £1.5bn of value in the year Transformation programme expected to help mitigate inflation impacts in FY23 REFOCUS ACHIEVEMENT FY22 PERFORMANCE £m MARKET PERFORMANCE • £300m value contribution in Q4, £1,000m full year • Data driven optimisation across product offer, ordering and buil
Slide 26: Significant inflation headwinds
Significant inflation headwinds Plan to mitigate through revenue and cost optimisation actions under Refocus FY22 MATERIAL AND OTHER COSTS OF SALES TARGET £1B OF REFOCUS SAVINGS IN FY23 Pillar Description Action 1 Quality Further reduce warranty cost Programme Delivery & 2 Improve profit per unit Pe
Slide 27: Expect significant improvement in sales, profit, cash flow over FY23
Expect significant improvement in sales, profit, cash flow over FY23 Specific supply issues and Range Rover Sport changeover expected to limit improvement in Q1 OUTLOOK (FY23) • Ongoing supply challenges compounded by the conflict in Ukraine and China covid lockdowns • Commodity inflation likely to
Slide 28: Tata Commercial Vehicles
Tata Commercial Vehicles Girish Wagh & PB Balaji (Includes Tata CV India, Tata Cummins JO results and Tata CV International)
Slide 29: Tata Commercial Vehicles - Volumes
Tata Commercial Vehicles - Volumes Strong recovery lead by ILCV and SCV segment Tata Commercial Vehicles | Volumes INDIA BUSINESS VOLUMES Powertrain mix (FY 22) Wholesales (incl. exports ) Wholesales (incl. exports ) (K units) (K units) YoY 7.3% Exports YoY 36.5% Exports 18% 10% 17% 357.5 40% 10% WH
Slide 30: Market shares at 44.9% (+250bps vs FY21)
Market shares at 44.9% (+250bps vs FY21) All segments gained market share in FY22 Tata Commercial Vehicles | Domestic market share Commercial Vehicles SCV salience normalizing 45.1% 43.0% 42.4% 44.9% 64.2% 56.6% 59.0% 49.6% FY19 FY 20 FY 21 FY22 FY19 FY 20 FY 21 FY 22 MHCV ILCV SCV Buses & Vans 57.4
Slide 31: Q4: Revenue ₹18.5KCr, EBITDA 5.9%, PBT(bei) ₹0.6KCr
Q4: Revenue ₹ 18.5KCr, EBITDA 5.9%, PBT(bei) ₹ 0.6 KCr Q-o-Q margin improvement due to price hikes, improved mix, savings and stable steel prices F Y 2 2 | T a t a C o m m e r c i a l V e h i c l e s | IndAS, ₹ K C r Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y Global wholesales ( K
Slide 32: EBIT at 3.4% (220) bps; PBT (bei) ₹0.6 KCr
EBIT at 3.4% (220) bps; PBT (bei) ₹ 0.6 K Cr Unrecovered price ( 200 bps), lower Q-o-Q Q 4 F Y 2 2 | T a t a C o m m e r c i a l V e h i c l e s | IndAS, ₹ Cr ₹ Cr. IndAS FME & Others: ₹(150) Cr D&A and PDE : ₹(127)Cr EBIT % 5.6% 1.3% 3.4% (5.4)%. (1.5)% - 3.4% For analytical purposes only Unrecover
Slide 33: Tata Commercial Vehicles – Overall update
Tata Commercial Vehicles – Overall update Demand progressively picking up across segments Key Highlights Bright Spots Challenges • Industry leading volume growth; +250 bps • Trucker’s sentiment index improving across • Inflation remains the key challenge. gain in market share, gain across all segmen
Slide 34: Tata Commercial Vehicles – New business update
Tata Commercial Vehicles – New business update Electric Mobility Green Mass Mobility Solution Digital Operationalized 250+ electric buses in • Strengthened play in EV buses through • Fleet edge - Platform upgraded in FY22 with FY22, Cumulative 645+ e-buses own, maintain and operate model offered e
Slide 35: Tata Passenger Vehicles
Tata Passenger Vehicles Shailesh Chandra & PB Balaji (Includes Tata PV, EV India, FIAPL JO results and International business(PV+EV)) 34
Slide 36: Tata Passenger Vehicles - Volumes
Tata Passenger Vehicles - Volumes Strong recovery continues, highest quarterly and annual sales since inception Tata Passenger Vehicles | Volumes INDIA BUSINESS VOLUMES Wholesales (incl. exports ) Wholesales (incl. exports ) (K units) (K units) Domestic Market share YoY 46.8% Exports YoY 67.2% Expor
Slide 37: EV business continues its exponential growth; 4.5X in FY22
EV business continues its exponential growth; 4.5X in FY22 TML consolidates leadership position further Volume & Market Share Network Charging Infra 25,0 00 94% 100 % 87% 143 90% 2000 19,105 71% 20,0 00 80% 70% 97 15,0 00 60% 47% 75 50% 10,0 00 9,094 40% 51 30% 43 4,218 450 22 5,00 0 20% 1,325 10% 1
Slide 38: Q4: Revenue ₹10.5 KCr, EBITDA 6.9%, EBIT breakeven delivered
Q4: Revenue ₹ 10.5 KCr, EBITDA 6.9%, EBIT breakeven delivered Strong turnaround continues F Y 2 2 | T a t a P a s s e n g e r V e h i c l e s | IndAS, ₹ K C r Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y Global wholesales ( K units) 64.6 84.4 99.4 123.6 84.2 46.8% 372.2 222.6 67.2%
Slide 39: EBIT at 1.2% (+400) bps; PBT (bei) breakeven
EBIT at 1.2% (+400) bps; PBT (bei) breakeven Volume, mix & realisations contributing strongly to margin improvement Q 4 F Y 2 2 | T a t a P a s s e n g e r V e h i c l e s | IndAS, ₹ Cr ₹ Cr. IndAS FME & Others: ₹(100) Cr D&A and PDE : ₹(86)Cr EBIT % (2.8)% 5.6% 2.2% (2.7)%. (1.8)% 0.7% 1.2% For ana
Slide 40: Business update
Business update Bright spots to drive business in Q1FY23; mitigation actions in place to alleviate challenges Tata Passenger Vehicles Bright spots Challenges • In Q4, Industry wholesales increased • Industry projected to grow in FY23; • Semi-conductor situation will restrict Industry 21% QoQ as semi
Slide 41: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL. 40
Slide 42: Q4 FY22 Free Cash Flows ~₹4.1 KCr
Q4 FY22 Free Cash Flows ~₹ 4.1 KCr Cash profits funds investments. Working capital releases to normalize in FY23. Q4FY22 | Tata Motors Domestic Business |IndAS, ₹ Cr* Payables, acceptances ₹ 3,117 Cr Trade receivables ₹ 540 Cr Inventories ₹ 867 Cr Others ₹ 718 Cr Q4 FY22 FY 22 (1,880) 4,911 (192) 2,
Slide 43: Investment Spending in FY22 ₹3.7 KCr
Investment Spending in FY22 ₹ 3.7 KCr FY23 capex to be stepped up further to ~ ₹ 6000 Cr; FCF to remain positive Q4FY22 & FY 22 | Tata Motors Domestic Business* |IndAS, ₹ Cr Q4FY22 | Domestic CV Business |IndAS, ₹ Cr Q4FY22 |Domestic PV+EV Business |IndAS, ₹ Cr FY22 | Domestic Business | CV+PV+EV In
Slide 44: Tata Motors Finance: Managed AUM ₹45.2K Cr, PBT ₹101 Cr
Managed AUM ₹ 45.2K Cr, PBT ₹ 101 Cr & Pre-tax ROE of 2.1% Collections improve significantly; Compliant to PCA norms F Y 2 2 | T a t a M o t o r s F i n a n c e | IndAS, ₹ ( C r I N R ) IndAS FY21 FY22 Q4 FY22 & FY22 Focus areas FY23 Market Share 33% 27% • Disbursals grew Y-o-Y by 23.5% to ₹16,797 C
Slide 45: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth whilst deleveraging the business Outlook (FY23) • Demand likely to remain strong despite geopolitical and inflation concerns. • Supply situation gradually improving; However, commodity inflation likely to remain at e
Slide 46: Q&A session Thank you
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 45
Slide 47: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the year ended 31 st March 2022 46
Slide 48: Tata Motors Group Financials – Quarter ended March 2022
Tata Motors Group Financials Consolidated Quarter ended March 31, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 48,023 18,529 10,491 1,396 78,439 Grant income / incentives 491 69 101 (2) 660 Expenses : Cost of materials consumed (
Slide 49: Tata Motors Group Financials – Quarter ended March 2021
Tata Motors Group Financials Consolidated Quarter ended March 31, 2021 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 66,075 14,334 6,475 1,744 88,628 Grant income 356 40 135 19 550 Expenses : Cost of materials consumed (40,862) (10,690
Slide 50: Tata Motors Group Financials – Year ended March 2022
Tata Motors Group Financials Consolidated Year ended March 31, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 187,697 52,287 31,515 6,955 278,454 Grant income 1,468 184 465 7 2,125 Expenses : Cost of materials consumed (114,340) (3
Slide 51: Tata Motors Group Financials – Year ended March 2021
Tata Motors Group Financials Consolidated Year ended March 31, 2021 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 193,823 33,104 16,606 6,262 249,795 Grant income 1,344 174 382 19 1,918 Expenses : Cost of materials consumed (120,335) (
Slide 52: Tata Motors Group Financials – Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover Q 4 & F Y 2 2 | I F RS , £ m FY21 v FY22 Q4 v Q4 YoY Q3 v Q4 QoQ Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 YoY Change Change Change Revenues 6,538 4,716 4,767 19,731 18,320 (1,772) 50 (1,410) Material and other cost of sales (4,065) (2,783) (2,807) (12,335) (11
Slide 53: Debt profile
Debt profile Strong liquidity; debt maturities well spread out JLR Total IndAS Tata Domestic Business* IFRS, £m Debt maturity profile 7,597 ₹ Crores Debt maturity profile 502 Total 20,487 2,275 786 1,737 RCF 1,500 RCF 4,820 229 17,964 515 849 732 126 339 1,737 1,681 5,036 781 977 849 2,604 3,298 3,5
Slide 54: Q4 wholesales up 11% QoQ with strong model family mix
Q4 wholesales up 11% QoQ with strong model family mix overall But Range Rover model down 7k as new model ramps up and prior model runs out F Y 2 2 | M o d e l F a m i l i e s | W h o l e s a l e s | U nits in 0 0 0 ’s 123 63 77 39 38 69 26 17 17 16 13 10 13 8 10 179 347 148 294 67 53 58 48 50 39 Not
Slide 55: Inventories at historically low levels as supply remains constrained
Inventories at historically low levels as supply remains constrained Starting to rebuild the pipeline in Q1 Units 000’s JLR Inventory Retailer Inventory 80k 70k 60k 50k 40k 30k 20k 10k 0k 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 54
Slide 56: Q4 Profitability down YoY – reflects semiconductor supply constraints
Q4 Profitability down YoY -- reflects semi-conductor supply constraints Volumes (635) VME Material cost (142) Engineering & Operational FX 127 (84) (4.4)% to 144 capitalisation Mix 125 (0.9)% Realised FX (57) Fixed derivatives Emissions 55 marketing & 40 selling expense Revaluation (137) Unrealised
Slide 57: China JV achieves positive EBIT margin in Q4
China JV achieves positive EBIT margin in Q4 despite chip constraints Q 4 F Y 2 2 | I F RS , £ m (Presented on 100% basis) Q4 v Q4 Q3 v Q4 FY21 v FY22 Q4 Q3 Q4 FY21 FY22 YoY QoQ YoY FY21 FY22 FY22 Change Change Change Retail volumes ('000 units) 15.9 13.7 11.0 64.3 54.0 4.9 2.7 10.3 Wholesale volume
Slide 58: FX and commodity financial impact
FX and commodity financial impact Q4 FY22 v Q3 FY22 £(20)m with favourable commodity revaluation offsetting exchange Q 4 F Y 2 2 | I F RS , £ m Q4 v Q4 Q3 v Q4 FY21 v FY22 YoY Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 YoY QoQ Change Change Change Operational exchange1 n/a n/a n/a n/a n/a 126 14 39 Realised