Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Q2 FY2022 Earnings Presentation
50 slides from Tata Motors Passenger Vehicles's earnings presentation, Nov 1, 2021
Slide 1: Exchange filing cover letter for 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 Group Results for the quarter ended 30th September 2021
Tata Motors Group Results for the quarter ended 30 th September 2021
Slide 3: Safe harbour statement
Safe harbour statement Statements in this presentation describing the objectives, projections, estimates and expectations of Tata Motors Limited (the “Company”, Other Details “Group” or “TML”) Jaguar Land Rover Automotive plc (“JLR ”) and its other • Accounting for PV (JO): The scheme for transfer o
Slide 4: Product and other highlights
Product and other highlights $1 BN fund raise in its Passenger Electric Vehicle Power packed, PUNCH India’s first sub-compact Ace Gold Petrol CX, 407 CNG, Tigor EV, X-press T EV business at a valuation of up to $9.1 bn SUV with 5 star adult safety rating JLR most improved in US J.D. Power quality Fl
Slide 5: Q2: Revenue ₹61.4KCr, EBITDA 8.4%, PBT(bei) ₹(3.5)KCr
Q2: Revenue ₹ 61.4KCr, EBITDA 8.4%, PBT(bei) ₹ (3.5)KCr Significant improvement in India; Semiconductor shortages affected JLR performance Q 2 F Y 2 2 | C o n s o l i d a t e d | IndAS, ₹ K C r Global Wholesales Revenue PBT (bei) (K units) ₹KCr ₹KCr YoY +24.6 % YoY +14.7 % 252.2 66.4 61.4 202.4 213.
Slide 6: EBIT (1.5)%; Net Auto Debt ₹64.4KCr
EBIT (1.5)%; Net Auto Debt ₹ 64.4KCr TML (S), TMF and others partially offset JLR EBIT decline. Working capital impacts Net Auto Debt by ₹ 18.5 KCr in H1 Q 2 F Y 2 2 | C o n s o l i d a t e d | IndAS, ₹ K C r Revenue 2.4 2.4 (3.0) 6.1 61.4 53.5 (5.7)% 11.4% 4.5% 4.5% 14.7% growth Q2FY21 Volume & Mix
Slide 7: Jaguar Land Rover Automotive plc
JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL Chief Financial Officer Results for the quarter ended 30th September 2021 6
Slide 8: Q2 Revenue of £3.9b and loss of £302m reflecting chip supply constraints
Q2 Revenue of £3.9b and loss of £302m reflecting chip supply constraints Cash outflow significantly improved vs £(1)b expected, reflecting lower breakeven Q2 FY22 | IFRS, £m Retails Revenue PBT (K units) £m £m YoY (11.1) % YoY (18.4)% 124.5 113.6 4,966 92.7 4,352 65 3,871 -110 -302 Q2 FY21 Q1 FY22 Q
Slide 9: Q2 FY22 Performance highlights
Q2 FY22 Performance highlights • Wholesales constrained by semiconductor supply to 64k in line with expectations Volume & • Retail sales down 18% YoY overall in Q2, though up 16% YTD Revenue • Record order bank of more than 125k units at 30th September, of which over 32k are Defender orders • Overse
Slide 10: Wholesales and retails by region
Q2 FY22 Retail sales 93k, down 18% YoY Wholesales of 64k, in line with guidance; record order books of over 125k units Q2 FY22 | Units in 000’s UK N. AMERICA EUROPE CHINA OVERSEAS TOTAL 27. 25. 27. 25. 92. 113.6 4 3 21. 20. 2 5 7 3 6 17. 14. 13. 14. RETAILS 1 3 1 5 YoY (18)% YoY YoY YoY YoY YoY (16)
Slide 11: Defender sales up in Q2
Defender sales up in Q2 Electrified sales now 66% of total Q 2 & F Y 2 2 Y T D | R e t ai l U n i t s i n 0 0 0 ’ s JLR POWERTRAIN MIX 66% electrified 53.8 39.2 16.7 27.3 Q2 22.6 17.5 19.2 54.9% YoY 9.8 33.9% YoY YoY YoY 8.3% (27)% 2.9% (22)% +70% (30)% Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY2
Slide 12: Inventories at historically low levels as supply remains constrained
Inventories at historically low levels as supply remains constrained Expect retailer stocks to recover when chip supply permits UNITS Retailer Inventory JLR Inventory 120k 110k 100k 90k 80k Retailer and JLR inventory ~50K units lower y-o-y 70k 60k 50k 40k 30k 20k 10k 0k Apr May Jun Jul Aug Sep Oct N
Slide 13: Loss of £302m; EBIT (4.7)%
Loss of £302m; EBIT (4.7)% Lower volumes, destocking, capitalisation and reval partly offset by VME and reserves release Q2 FY22 | IFRS, £m Volume (116) VME (3.8% to 1.7%), Warranty 24 Destocking (99) Operational exchange Underlying VME from Import duties (20) (20) Emissions 74 Capitalisation (91) 5
Slide 14: Free cash outflow £664m, primarily working capital
Free cash outflow £664m, primarily working capital of £(501)m Significantly better than expected £1b outflow, reflecting lower cash breakeven point Q2 & FY22 YTD | IFRS, £m D&A 467 Payables (634) Inventory 300 Receivables 77 Reserve releases (136) 694 Restructuring (42) (71) 321 (484) (302) (664) (5
Slide 15: Total Q2 investment £484m – 12.5% of revenue
Total Q2 investment £484m – 12.5% of revenue Expect FY22 spend of £2.3b - £2.4b, better than £2.5b prior target Q2 FY22 | IFRS, £m 166 484 199 318 119 Capitalised Expensed Total Capital Total Q2 FY22 R&D R&D R&D Investment* Investment Q2 FY21 210 99 309 222 531 * Of which £171m relates to purchases
Slide 16: Business Update
BUSINESS UPDATE 15
Slide 17: New Range Rover launched – sales expected to start in Q4 FY22
New Range Rover launched – sales expected to start in Q4 FY22 Breathtaking modernity, peerless refinement and unmatched Land Rover capability First MLA Flex vehicle: provides luxurious four, five or seven- seat interiors and electrified powertrains Extended range PHEV: New plug-in hybrids deliver an
Slide 18: Refocus: transformation making good progress
Refocus: transformation making good progress, notably market performance £300m delivered in Q2, taking YTD to £500m and on track to deliver £1b full year REFOCUS ACHIEVEMENT PERFORMANCE & PRIORITIES MARKET PERFORMANCE • £150m value in Q2, £300m YTD • Primarily VME, marketing fixed costs and emission
Slide 19: Refocus: Jaguar Land Rover quality improved in 2021
Refocus: Jaguar Land Rover quality improved in 2021 JLR in 1st place in US J.D. Power APEAL survey and most improved in IQS survey (corporate) 21MY KEY IMPROVEMENTS QUALITY SURVEY PERFORMANCE J.D. Power IQS - US (Initial Quality Survey; customer experience after 3 months) Powertrain Combined JLR b
Slide 20: Refocus: significant reduction in warranty costs
Refocus: significant reduction in warranty costs Actions continue to deliver sustainable improvements in quality and warranty cost REDUCED WARRANTY EXPENSE IMPROVED QUALITY AND WARRANTY COSTS 6% • Refocus driving improvements to deliver fault free performance, 5.6% from launch 5% • Significant recen
Slide 21: Emissions compliance in CY21 through pooling and credit purchases
Emissions compliance in CY21 through pooling and credit purchases Pooling achieves UK & EU compliance while chip shortages impact EV production UNDERLYING COMPLIANCE POOLING CREDIT PURCHASES Based on demand, JLR would be Emissions pool agreed with other JLR continues to buy credits in US compliant w
Slide 22: Semiconductor supply status and outlook remains challenging
Semiconductor supply status and outlook remains challenging Expect situation to gradually improve starting in H2 FY22 INCREASE CHIP SUPPLY OPTIMISE CHIP UTILISATION BUILD LONG-TERM RESILIENCE Supply recovering following supplier Prioritisation of higher margin Improved visibility and engagement plan
Slide 23: Lowered breakeven in FY22 to mitigate chip shortages
Lowered breakeven in FY22 to mitigate constraints caused by chip shortages Proactively managed costs and optimised mix to minimise impact U n its 0 0 0 660 540 All-new Range Rover sales begin 400 Annualised 360 350+ 340 Breakeven Wholesales FY19 FY20 FY21 H1 FY22 H2 FY22 FY23 Quarterly Breakeven Who
Slide 24: Outlook: Expect improved results as chip supply gradually improves
Outlook: Expect improved results as chip supply gradually improves Reimagine medium and long-term targets remain unchanged F Y 2 2 OUTLOOK MEDIUM AND LONG TERM TARGETS SECOND HALF FY22 FULL YEAR FY24 FY26 REVENUE Increasing vs H1 Lower YoY Increasing > £30b EBIT MARGIN Positive Around breakeven ≥ 7%
Slide 25: Tata Motors (Standalone)
Tata Motors (Standalone) PB Balaji 24
Slide 26: Q2 Revenue ₹18.4KCr; EBITDA 3.9%, FCF ₹3.8KCr
Q2 Revenue ₹18.4 KCr; EBITDA 3.9%, PBT(bei) ₹ (0.8)KCr , FCF ₹ 3.8KCr Strong revenue recovery amidst supply and commodity inflation challenges Q 2 F Y 2 2 | T M L S t a n d a l o n e | IndAS, ₹ K C r Wholesales Revenue PBT (bei) YoY + 56.3 % ₹KCr YoY + 90.7 % YoY + 29.8 % (K units) ₹KCr 18.4 171.8 1
Slide 27: Performance highlights
Performance highlights Q2FY22 | TML Standalone • Revenue (+91%); strong recovery Q-o-Q and Y-o-Y Volume & • CV (+97%) ; YoY improvement in mix. Revenue • PV (+83%) ; Strong order book, 85.2 K units retails in Q2 FY 22. • EV (~2x growth) ; Highest ever quarterly sales at 2,704 units, strong order boo
Slide 28: EBIT at (1.6)%; PBT (bei) ₹(819) Cr
EBIT at (1.6)%; PBT (bei) ₹ (819) Cr Better volumes and mix, offset by sharp commodity inflation and higher investments to drive growth Q 2 F Y 2 2 | T M L S t a n d a l o n e | IndAS, ₹ INR ₹ Cr. IndAS FME& Others: ₹ (218) Cr D&A and PDE : ₹(190)Cr Interest (net): ₹ 111 Cr EBIT % (6.8)% 11.4% 0.6%
Slide 29: Q2 FY22 Free Cash Flows ₹3.8 KCr
Q2 FY22 Free Cash Flows ₹3.8 KCr Working Capital Unwind of Q1 partially corrected, strong operational cash flows Payables, acceptances ₹ 2,994 Cr Q 2 F Y 2 2 | T M L S t a n d a l o n e | IndAS, ₹ INR Trade receivables ₹ 30 Cr Inventories ₹ 230 Cr Others ₹ 568 Cr Q2 FY22 Ytd (2,108) 3,025 (62) 855 (
Slide 30: Investment Spending ₹0.6 KCr
Investment Spending ₹ 0.6 KCr Capex managed dynamically in a fluid environment Q 2 F Y 2 2 | T M L S t a n d a l o n e | IndAS, ₹ INR Q2 FY22 Q2 304 176 480 189 669 FY21 29
Slide 31: Commercial Vehicles
Commercial Vehicles Girish Wagh & PB Balaji 30
Slide 32: Market shares at 44.6%, M&HCV and ILCV shares strengthen further
Market shares at 44.6%, M&HCV and ILCV shares strengthen further Gained share across all four segments in Q2 FY22 Commercial Vehicles SCV salience starts to normalise 45.1% 43.0% 42.4% 44.6% 64.2% 64.7% 61.3% 56.6% 49.6% FY19 FY 20 FY 21 H1 FY22 FY19 FY 20 FY 21 Q1 FY22 H1 FY22 MHCV ILCV SCV Buses 6
Slide 33: Volumes 87.4K (+59%), Revenue ₹10.9KCr (+97%)
Volumes 87.4K (+59%), Revenue ₹ 10.9KCr (+97%) EBITDA 3.1% (10bps) – Sequential recovery with improved mix, commodity inflation impacts margins C o m m e r c i a l V e h i c l e s | Q 2 F Y 2 2 | IndAS, ₹ K C r Wholesales (incl. exports ) Exports (K units) Retails (domestic) Revenue (K units) ₹KCr Y
Slide 34: CV – Business update
CV – Business update Positive demand recovery in all four segments Key Highlights Bright Spots Challenges • Sale in Q2 FY22 was +51% vs Q2 FY21 • Sequential improvement in utilization of cargo • Inflationary pressure on commodity prices, and +84% vs Q1 FY22 segment led by Agriculture, FMCG and e-com
Slide 35: Passenger & Electric Vehicles
Passenger & Electric Vehicles Shailesh Chandra & PB Balaji 34
Slide 36: PV business continues to build on momentum
PV business continues to build on momentum Focused actions are leading to improvement in market standing Market shares POWERTRAIN MIX 11.3% 10.0% EV, 0.2% EV, 2% EV, 3% EV, 3% 8.2% Diesel, 18% Diesel, 28% Diesel, 23% Diesel, 23% 4.8% Petrol, 71% Petrol, 80% Petrol, 75% Petrol, 74% FY20 FY21 Q1 FY22
Slide 37: EV business continues to grow exponentially
EV business continues to grow exponentially; potential is much more TML<>TPG Rise Climate deal will provide a further boost Volume and Market share Demand vs Supply : Nexon EV 80% 71% 71% 14000 70% 12000 60% 10000 47% 50% 8000 40% 6000 30% 4218 4419 4000 18% 20% 11% 2000 1325 10% 131 349 0 0% FY18 F
Slide 38: Volumes 84.4K (+54%), Revenue ₹7.4KCr (+83%)
Volumes 84.4K (+54%), Revenue ₹ 7.4KCr (+83%) EBITDA 5.2% (+360bps); Strong momentum continues Passenger Vehicles | Q2 FY22 |IndAS, ₹KCr Wholesales (incl. exports ) Exports Retails (domestic) Revenue (K units) (K units) ₹KCr YoY + 53.7 % YoY +59.1 % YoY +82.7 % 84.4 0.4 85.2 7.4 64.6 55.0 0.2 5.3 0.
Slide 39: PV: Business update
PV: Business update Actions to sustain the momentum Demand generation Demand fulfilment Profitability/ Cash Management • Continued thrust on micro-market • Mitigate demand fulfilment risk arising • Smart mix management to drive initiatives and rural expansion from semiconductor supply crunch better
Slide 40: Tata Motors Finance: AUM ₹43K Cr, PBT ₹486Cr
Tata Motors Finance: AUM ₹ 43K Cr, PBT ₹486Cr Asset quality starts to recover; Focus on collection delivers Q 2 F Y 2 2 | T a t a M o t o r s F i n a n c e | IndAS, ₹ ( I N R ) IndAS Q2 FY21 Q2 FY22 • Disbursals grew to ₹4,342Cr as economic activity revives CV Market Share 32% 29% • Collection effic
Slide 41: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth and to deleverage the business Outlook • Demand situation continues to improve as pandemic subsides and vaccination rates pick up • Supply situation to remain challenging with continuing semiconductor shortages and c
Slide 42: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended 30 th September 2021 41
Slide 43: Accounting for Passenger Vehicles (JO) as Discontinued Operations
Accounting for Passenger Vehicles (JO) as Discontinued Operations The Company’s shareholders had approved the scheme for transfer of its passenger vehicle division to Tata Motors Passenger Vehicles Ltd (100% subsidiary) as a going concern on slump sale basis. This scheme was approved by NCLT Mumbai
Slide 44: Tata Motors Group Financials
Tata Motors Group Financials Consolidated Rs Cr. IndAS Quarter ended 30 September Half year ended 30 September Q2 FY22 Q2 FY21 Y-o-Y change H1 FY22 H1 FY21 Y-o-Y change Global Wholesales* 252,231 202,427 24.6% 465,860 294,262 58.3% Revenue 61,379 53,530 14.7% 127,785 85,513 49.4% EBITDA 5,160 5,607
Slide 45: Tata Motors Group Financials – Standalone
Tata Motors Group Financials Quarter ended 30 September Half year ended 30 September Standalone (JO) Rs Cr. IndAS Q2 FY22 Q2 FY21 Y-o-Y change H1 FY22 H1 FY21 Y-o-Y change Total Volumes : CV+ PV + Exports (Units) 171,823 109,958 56.3% 285,993 135,232 111.5% CV (Units) 78,709 51,603 52.5% 121,509 61,
Slide 46: Tata Motors Group Financials – Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover Q2 FY21 Q2 FY22 CHANGE FY 21 YTD FY 22 YTD CHANGE Revenues 4,352 3,871 (481) 7,211 8,837 1,626 Material and other cost of sales (2,695) (2,500) 195 (4,528) (5,649) (1,121) Employee costs (492) (513) (21) (927) (1,105) (178) Other (expense)/income (894)
Slide 47: Debt profile
Debt profile Strong liquidity; debt maturities well spread out JLR Total IndAS TML (S) Total IFRS, £m Debt maturity profile 7,556 ₹ Crores Debt maturity profile 27,320 602 762 1,734 7,226 RCF RCF 1,500 5,210 686 19,332 515 104 274 700 595 2,523 2,600 61 4,626 5,099 772 993 2,920 3,354 3,838 3,435 40
Slide 48: China JV: Retails and wholesales down due to chip supply constraints
China JV: Retails and wholesales down due to chip supply constraints Revenue lower broadly inline with wholesales, breakeven profit Q 2 F Y 2 2 | I F RS , £ m (Presented on 100% basis) Q2 FY22 Q2 FY21 Change Retail volumes ('000 units) 14.5 16.0 (1.5) Wholesale volumes ('000 units) 14.2 17.9 (3.7) R
Slide 49: FX impact – Consolidated & Standalone
Tata Motors Group FX impact-Consolidated & Standalone (JO) Rs Cr. IndAS Quarter ended 30 Sept Six month ended 30 Sep Consolidated Q2 FY22 Q2 FY21 H1 FY22 H1 FY21 Realised Foreign Exchange 248 (36) 275 (65) Total FX impacting EBITDA & EBIT : gain/(loss) 248 (36) 275 (65) Unrealised Foreign Exchange (
Slide 50: FX & commodities £(117)m YoY
FX & commodities £(117)m YoY – unfavourable debt & commodity reval QoQ £(14)m reflecting unfavourable reval of debt and commodity hedges offset by favourable FX Q 2 F Y 2 2 | I F RS , £ m Operational exchange 1 n/a 23 (20) Realised FX 2 9 7 37 Total FX impacting EBITDA & EBIT n/a 30 17 Revaluation o