Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Investor Day (February 2021)
129 slides from Tata Motors Passenger Vehicles's investor day presentation, Feb 26, 2021
Slide 1: Cover letter to stock exchanges: Investor Day Meet 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 Bhanda
Slide 2: Tata Motors Group: India business
Tata Motors Group : India business Annual Analyst Engagement | 22nd February 2021
Slide 3: Safe harbour statement
Safe harbour statement Statements in this presentation describing the objectives, projections, Accounting Standards estimates and expectations of Tata Motors Limited (the “Company”, “Group” or “TML”) Jaguar Land Rover Automotive plc (“JLR ”) and its other direct and • Financials contained in the pre
Slide 4: Agenda
Agenda Session Timing Presenter 1 Introduction & Context 5 mins 2:00- 2:05 - Setting 2 Turnaround accelerated 30 mins 2:10- 2:40 Guenter Butschek 3 CV – Win Decisively 45 mins 2:45- 3:30 Girish Wagh 4 PV – Win Sustainably 45 mins 3:35-4:20 Shailesh Chandra 5 Financial outlook 20 mins 4:25-4:45 P B B
Slide 5: Turnaround accelerated
Turnaround accelerated Guenter Butschek, CEO & MD – Tata Motors
Slide 6: From Covid to Business Continuity
From Covid 19 to Business Continuity Employee Engagement and Upskilling Employees Govt./Local Mfg & Supply Strong alignment on SOPs Authorities Rigorous Cost Reduction and Cash Chain Conservation, Agile supply chain RESPONSE to pandemic Frontrunners in Tata Group - enabling Community Constant engage
Slide 7: Challenges to be addressed by the new normal
Challenges to be addressed by the ‘new normal’ Consumer Regulatory Environment Industry Concerns on health and BS6 acceptance Gradual economic recovery Unpredictable and volatile safety market Corporate Average Fleet Economy Higher TCO, fuel prices Conscious spending (CAFÉ) Pent up demand Vs structu
Slide 8: Accelerating the Turnaround at Tata Motors
Accelerating the Turnaround at Tata Motors Focus 2020-21 • PV – Reimagining Frontend Sales enhancement Securing • CV – Accelerating revenue growth in a rising Growth MOP environment Securing • Engineering Efficiency - More for Less Rigorous cost reduction and bottom- • Employee costs line improvemen
Slide 9: CV establishing supremacy with BSVI and beyond
CV establishing supremacy with ‘BSVI and beyond’ Gaining market share in MHCV, recovering in ILCV, SCV and Passenger Building traction in SCV with Intra, Ace Gold, petrol, CNG Investing into future - new products, ACES, Digital Amplifying customer communication by ‘Power of 6’ campaign Supporting na
Slide 10: PV on a new high
PV on a new high Strong response to ‘New Forever’ product range Consolidating No. 3 position, claiming top 5/10 in respective segments Record volumes after 8+ years, Market share close to double digits (7.5%+) Nexon EV emerging as the undisputed leader, 500+ units/month Reimagining front end Custome
Slide 11: Building the future comprehensively
Building the future comprehensively Manufacturing • Industry & Logistics 4.0 • Integrated S&OP Design Sales & Marketing, Service • ‘Impact 2.0’ language • Digital Transformation • Dealer profitability Engineering Supply Chain • Engineering Efficiency • Connected supply chain (More for Less) • Strate
Slide 12: Intensifying the focus on ESG
Intensifying the focus on ESG Environment Safety CSR & Health Sustainable Mobility Committed to Renewable Energy Frontrunner in India on Consistent spend on CSR Tata UniEVerse - a Tata Group RE100 by 2030, from 24% in 2021 GNCAP safety standards beyond regulations (20 cr.) consortium committed to ad
Slide 13: Welcoming Marc
Welcoming Marc To a successful future
Slide 14: Commercial Vehicles – Win Decisively
Commercial Vehicles – “Win Decisively” Girish Wagh , President : CVBU
Slide 15: Contents
Contents - The year gone by: Industry context - Journey so far - Future outlook
Slide 16: Indian CV Industry has faced major head-winds over last two years
Indian CV Industry has faced major head-winds over last two years Thousands 1 1200 1065k 2 60% (FY19) 3 1000 YoY Growth on 40% CV sales (%) 726k 4 800 (FY20) 20% 600 0% 400 -20% Total CV sales 200 -40% 0 -60% FY87 FY89 FY91 FY93 FY95 FY97 FY99 FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15 FY17 FY19 FY21(P
Slide 17: FY21: Key challenges and our response
FY21: Key challenges and our response Factors Challenges Response Business Continuity Plan Supporting Customers during pandemic and continuous Stakeholder engagement COVID-19 Pandemic accentuating Focus on demand generation, improved Disruptions on Stressed profitability the downturn realizati
Slide 18: Interventions to navigate the downturn and subsequent recovery
Interventions to navigate the downturn and subsequent recovery Cash conservation and Demand Generation Demand Fulfilment cost reduction • Focus on green-shoot microsegments • Ramp up supplies while monitoring • Concentrated efforts on cost reduction and extensive on-ground market the semiconductor s
Slide 19: Tap growth while serving the nation with agility
Tap growth while serving the nation with agility Refrigerated trucks from TML for vaccine transport 120 vehicles already sold 300+ vehicles in pipeline Comprehensive vehicle range from ‘Insulated Vaccine Vans’ to ‘Refrigerated Vaccine trucks’
Slide 20: Our Approach to BSVI
Our Approach to BSVI Conceptualization Introduction Selling Much more than compliance Impactful and Unmatchable Offer Performance Establishment • Reimagined product range • Range unveiled at Auto Expo 2020 • On-ground product demonstration aligned with Product Attribute and back-to-back trials Leade
Slide 21: Impactful BSVI Launch to Win Decisively
Impactful BSVI Launch to “Win Decisively” Widest range of BSVI vehicles with best-in-class TCO and profitability
Slide 22: Enhancing customer experience through Sampoorna Seva
Enhancing customer experience through Sampoorna Seva Industry First comprehensive 3000+ buses managed for service offering 10 STUs with >95% availability Reinforcing superior product Fleet Uptime and service capability Management 10 fleet owners onboarded Guarantee Solution covering 200+ tru
Slide 23: Continued progress in dealer profitability improvement
Continued progress in dealer profitability improvement Identification of opportunities Implementation Review and Monitoring Dormant Inefficient Revenue Streams Cost Structures TML Interventions Dealer Actions Limited Revenue from Allied Operational Costs from Process Focused Enablers Businesses Inef
Slide 24: Digitalization roadmap to address customer needs
Digitalization roadmap to address customer needs Digital solutions across customers' business Front end sales process digitalisation • Product configurator o Track and Trace o Real time fuel efficiency • ‘Go to market’ excellence process o Fuel loss/fill alerts • Financier integration Asset o Drivin
Slide 25: Continued to lead on customer facing metrics
Continued to lead on customer facing metrics Sales Satisfaction Post Sales Feedback Net Promoter Score 89.9 87.5 FY17 FY19 FY20 83.0 +57 +61 +65 FY19 FY20 FY21 (YTD) Service Satisfaction Post Service Feedback Dealer Satisfaction Index (DSI) 92.5 92.6 FY19 FY20 90.6 773 772 Industry leading scores FY
Slide 26: FY21 YTD Performance: Financials
FY21 YTD Performance: Financials Volumes (incl. exports) Revenue K units ₹KCr YoY -36.1% YoY -44.6 % 25.9 271.3 16.5 150.3 QoQ 72% 9.6 QoQ 54% 84.6 55.0 5.5 10.7 1.4 YTD Dec'19 YTD Dec'20 Q1FY21 Q2FY21 Q3FY21 YTD Dec'19 YTD Dec'20 Q1FY21 Q2FY21 Q3FY21 EBITDA EBIT % 3.6% % QoQ +480bps 1.0% QoQ +740bp
Slide 27: FY21 YTD Performance: Market shares
FY21 YTD Performance: Market shares Tata Motors CVBU Domestic Volumes Market Share-Overall 279.6 45.1% 43.0% 38.9% 36.7% 38.9% 173.3 173.3 29.6% 138.5 61.1 9.5 FY21 FY21 YTD Jan'20 YTD Jan'21 3M 6M 9M YTD Jan'21 FY19 FY20 FY21 3M 6M 9M MHCV ILCV SCV Buses 71.8% 47.2% 40.1% 37.9% 44.0% 60.2% 59.2% 45
Slide 28: CV International Business
CV International Business Current position Approach going forward Continued Strong presence in SAARC Strong Distributors Significant presence across Africa Right product , Focus on >6T segment Top 3 brands in 10 markets in >6T segment) Beginning to make progress in the Easy Availability of Retail Fi
Slide 29: Building competitive cost structure to lower the breakeven
Building competitive cost structure to lower the breakeven Material cost reduction Conversion and fixed cost reduction Cash conservation Teardown and benchmarking Cross locational teams (CLTs) to study Continued focus on a tight and optimise each cost element working capital cycle Advanced VAVE, Dig
Slide 30: Looking ahead
TATA MOTORS Connecting Aspirations Looking ahead ©ccovuriant Confidential, Tata Motors Limited 29
Slide 31: Factors influencing immediate outlook
Factors influencing immediate outlook 1 Infrastructure Push by the Government (NIP) 1 Supply side constraints 2 Improved Customer Sentiments 2 Commodity inflation Tailwinds Urban Demand revival and Rural stability 3 Delayed resumption of schools and offices 3 Challenges E-commerce Penetration and In
Slide 32: Indian CV industry immediate growth outlook
Indian CV industry immediate growth outlook SCV ILCV CV Passenger M&HCV TIV FORECAST FY19: 1.06 M FY20: 743 K (-31%) FY21: 577-589K (-22-20 %) 36-38% 299.7K 247.6K 245.7K 273K 219.8K 196.7K 219K 199K 150.1K 171K 137.3K 32.7K Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (E ) FY21 Q3 Q4(F) FY22 FY19 FY 2
Slide 33: We remain committed to competitive growth
We remain committed to competitive growth SCV and Pick up segment MHCV and ILCV segment Leverage Ace Petrol at a price point equivalent to BS4; Continue with ‘First in the market’ products to drive share and reinforce Ace diesel brand equity and realization Focus on product refresh and variant
Slide 34: Will expand network to drive higher reach and penetration
Will expand network to drive higher reach and penetration New Formats Rural Focus Tie-up with Complimentary Businesses • Micro dealers for SCV& PU with lower • Additional deployment of Tata Grameen • Partnership with financiers, Banks and breakeven point Mitras (TGMs) other rural organisations • Aut
Slide 35: Focus on other growth drivers to derisk cyclicality
Focus on other growth drivers to derisk cyclicality Service and Spare Penetration Used Vehicle International Business Business Aggregate New Business Models Business (Leasing, Fleet Management Solution) Revenue share has gone up from 16.8% (FY19) to 22.7% (FY21 YTD) (+590 bps)
Slide 36: Areas of focus over the longer term
Areas of focus over the longer term BS6 RDE development, going beyond mere Continued cost reduction, compliance to improve competitiveness pivoted to customer value Tighter Emission Lead in alternate fuels, in line with regulation Government priorities Product cost Alternate optimisation Powertrains
Slide 37: Electrification drivers and key segments
Electrification drivers and key segments Key drivers Emerging Commercial EV Segments 1 e-Auto Tightening Emissions Shared Cabs 2 Policy incentives Buses 3 Pull from Early adopters SCVs Last mile connectivity will be the next hot spot. To share plans at an appropriate time
Slide 38: Electrification - Successful participation and operations of EV buses
Electrification - Successful participation and operations of EV buses EV Bus Portfolio Continues to lead in the Electric bus EV ecosystem through Group synergy Tata Ultra Urban 9/9m EV space • Widest E-bus range • Comprehensive Fleet maintenance • Charger supplier Tata Urban 9/12m EV • End-to-End so
Slide 39: Our working plans
Our working plans • Win Decisively with our extensive product range and continue to lead the market developments • Land the benefits of BSVI with our customers • Achieve double digit EBITDA • Long term capex at 3%-4% of revenue • Strong positive FCF
Slide 40: Thank You
TATA MOTORS Connecting Aspirations Thank You ©ccovuriant Confidential, Tata Motors Limited 39
Slide 41: Passenger Vehicles: Win Sustainably
Passenger Vehicles : “Win Sustainably” Shailesh Chandra, President : PV & EVBU
Slide 42: Strong profitable growth in FY21
Strong profitable growth in FY21 Industry volumes TML PV Volumes TML PV market shares PV EBITDA margins 2,360 12% 45% 165 7.8% 2,077 3.8% 6.3% 5.7% 0.5% 5.1% 4.8% 114 (9.4%) YTD Jan 20 YTD Jan21 YTD Jan 20 YTD Jan 21 FY17 FY18 FY19 FY20 9MFY21 FY20 9MFY21 Q3 FY21 Exit Sales numbers in ‘000 9 Quarter
Slide 43: Excellent response for the New Forever range
Excellent response for the “ New Forever” range The portfolio of products, well positioned in the growing segments, enabling podium finish
Slide 44: All the products witnessing a steep jump in sales
All the products witnessing a steep jump in sales TIAGO Avg/Month Volumes NEXON Avg/Month Volumes 4122 6237 6594 4122 3605 FY’20 FY’21, Q3 Onwards FY’20 FY’21, Q3 Onwards Avg/Month Volumes HARRIER TIGOR Avg/Month Volumes 1611 4122 8374122 2319 1071 FY’20 FY’21, Q3 Onwards FY’21, Q3 Onwards FY’20 ALT
Slide 45: Nexon EV and Altroz – all round appreciation
Nexon EV and Altroz – all round appreciation Multiple awards for newly launched products reflects strong acceptability of products 44
Slide 46: Transformative actions to deliver step change in performance
Transformative actions to deliver step change in performance Agile Marketing Actions Channel Management Transformation Smart Product Interventions Focused actions in identified Sales team empowerment Demand-supply Synchronization micro-markets These structural actions across value chain have paved p
Slide 47: 5 foundational pillars identified to Win Sustainably
5 foundational pillars identified to “Win Sustainably” Brand Re-imagining Front End Mindset- Product Manufacturing Winning Sustainably in PV & Strategy & Quality Leadership Proactively in EV space Structural Margin Improvement These pillars will drive future success amidst increased competitiveness
Slide 48: Consistent increase in brand indicators
1 Brand Consistent increase in brand indicators NPS 28 Promotors Detractors Consistent increase in the NPS with 25 sharp decrease in detractors and 23 passives 4 27 7 32 4 32 2019 2020 2021 Mother Brand – Brand Health Track, by Kantar-Dec’-Jan’21 69 72 66 59 58 52 The brand has grown consistently 49
Slide 49: Approach to product launches
2 Product Strategy Approach to product launches Smart product intervention and timely New products to enhance addressable refreshes market Strengthening association with stylish Design, Integration of new technology features Safety and New technologies Mainstream innovative EVs to drive mass adoptio
Slide 50: 60% market coverage with strong positions in growing segments
2 Product Strategy 60% market coverage with strong positions in growing segments Segments Sub- Segments Entry Midsize High Premium Hatch Tiago #3 with MS 17% Altroz #3 with MS 18% Entry Midsize Executive Premium Sedans Tigor #3 with MS 6% Sub-Compact Compact Midsize 5 Str Prem Mid. 5 Str Midsize 7 S
Slide 51: Future technologies to strengthening our brand association
2 Product Strategy Future technologies to strengthening our brand association World class design Best in class Safety New Technologies • Continuous evolution of new age IMPACT- • Upgrade passive safety attributes – Enhance • Modern, intelligent & integrated infotainment ful design with focus on impr
Slide 52: We will bring aspirational features in accessible variants
2 Product Strategy We will bring aspirational features in accessible variants Altroz XM+ Android auto and Apple car play connectivity at a accessible price Nexon XM (S) Most affordable Electric • Harrier CAMO which pays Sunroof vehicle in India homage to the spirit & grit of the armed forces Sunroof
Slide 53: The New Safari is launched and receiving enthusiastic response
2 Product Strategy The New Safari is launched and receiving enthusiastic response Safari Launch Clip
Slide 54: HBX is scheduled to be launched in CY21
2 Product Strategy HBX is scheduled to be launched in CY21
Slide 55: Front-end is being reimagined across 4 key planks (1/2)
3 Reimagining Front-End Front-end is being reimagined across 4 key planks (1/2) 1. Sales 2. Dealer Processes & Resources Strategic interventions to drive sales growth • Continuous dealer financial health monitoring and support • Micro market specific sales & network strategy • Structured interventio
Slide 56: Front-end is being reimagined across 4 key planks (2/2)
3 Reimagining Front-End Front-end is being reimagined across 4 key planks (2/2) 3. Aftersales 4. Cust. Exp & Digital • Digitalization to key processes to ensure on time delivery and • Redefining a best-in-class experience by creating a seamless, fairness of charges emotional & lasting connection wit
Slide 57: Multiple initiatives undertaken to structurally improve margins
4 Structural margin improvement Multiple initiatives undertaken to structurally improve margins VAVE Product Mix Commercial reduction Non Veh Business • Consistently deliver • Optimizing product • Economies of scale • Business growing margin improvement mix delivering with increased at a CAGR of 7%
Slide 58: Leveraging existing assets to cater to increasing demand
5 Manufacturing and Quality leadership Leveraging existing assets to cater to increasing demand Key Highlights - 550K installed capacity with optimum balancing across locations - Debottlenecking of capacity Sanand - ~120% increase in in Jan’21 vis-à-vis monthly average 155K RJV production of FY20 65
Slide 59: Dial-up quality mind-set across value chain
5 Manufacturing and Quality leadership Dial-up quality mind-set across value chain Supplier Centric In-house Customer centric CFT - Cohesive Project “Stop Rapid Response Functional Teams - Generation” – for Team - RRT with focus on speed of defect prevention resolution Self Directed Teams Reliable C
Slide 60: EV Business
‘TA MOTORS Connecting Aspirations © copuriahe. Confidential, Tata Motors Limited 59
Slide 61: Tata Motors has established itself as a leader in EV market
Tata Motors has established itself as a leader in EV market Sales Performance (as of Jan’21) Customer Profile ( Nexon EV) Others Doctors 7% 7% 4180 72% 80% Customer segment Business TIV TML Market Share Owners 70% 30% 56% Salaried 60% 47% 3022 2811 50% 40% Only car Primary car 1946 19% 27% 18% 30% C
Slide 62: Comprehensive solutions are being offered to the customer
Comprehensive solutions are being offered to the customer Product Charging Solutions Nexon EV with cert. range of 312km Tigor ER EV with cert. range increase from 140 km to 213 km • #1 EV in India • #1 EV for fleet segment • Won EESL tender for 150 Evs • Public charging network with 355+ chargers •
Slide 63: Multiple initiatives undertaken to establish TML as a credible EV leader
Multiple initiatives undertaken to establish TML as a credible EV leader Create Awareness & Aspiration Build Credibility & Break Myths Branding to drive awareness, aspiration and credibility • State of the art EV tech brand • 1st Electric 4 Wheeler to travel Ziptron launch from Manali to Khardungla
Slide 64: Tata Group EV ecosystem collaboration in place
Tata Group EV ecosystem collaboration in place Will support phased localization and charging infrastructure penetration • 355+ public chargers inter & Intra - cities & plan to take it to 700 by mid of FY22 • Evaluating technical partners for establishing Lithium ion cell manufacturing plant • Home c
Slide 65: TML has strong strategy to retain competitive advantage in EVs
TML has strong strategy to retain competitive advantage in EVs Products Sales & Marketing • Portfolio of offering with different • Drive higher penetration in body styles and driving ranges micro markets • India specific Product specs and • Brand building for awareness differentiated value propositi
Slide 66: Our working plans
Our working plans • Amongst Top players in India Podium finish • Double digit Market share • Leader in “Future Car” SUVs & EVs segments Financial Growth Model Agility in Financial Planning CAPEX • Healthy double digit Contribution • Cash accretive Business • Invest to ensure product competitiveness
Slide 67: Thank you
TATA MOTORS Connecting Aspirations Thank you ©ccovuriant Confidential, Tata Motors Limited 66
Slide 68: Outlook
Outlook PB Balaji, Group CFO – Tata Motors
Slide 69: TML India Business
TML India Business Sequential recovery in revenue Margins bounce back; Cost savings on track 14,631 EBIT EBITDA ₹ Cr 0,000 19000 0,000 17000 8.3% 6.8% 9,668 15000 0.5% 2.6% 0,000 13000 0,000 11000 69,203 0,000 9000 FY19 FY20 Q1'21 Q2'21 Q3'21 2,687 7000 3.8% -7.2% -29.3% -6.8% 0.3% 43,928 0,000 26,9
Slide 70: Summarising our working plans
Summarising our working plans Commercial Vehicles Passenger Vehicles Double digit EBITDA margin High single digit EBITDA in next 3 years Long term capex of 3-4% of revenue Long term capex at 5%-6% of revenue Strong positive FCF FCF Breakeven by FY23 and positive FCF thereafter We remain committed to
Slide 71: Actions underway to improve credit ratings
Actions underway to improve credit ratings Rating Agencies Long Term Rating Moody’s B1 / Negative S&P B / Negative CRISIL AA- /Negative ICRA AA- / Stable CARE AA- / Negative Step towards improving credit matrix Operating performance & Optimization of Capex Generation of Target to achieve contributio
Slide 72: Roadmap to zero net auto debt
Roadmap to zero net auto debt Not to scale Lease 6.0 Lease 5.9 Lease 6.0 Lease 6.0 Operating cash-flows, divestments to contribute majorly towards debt reduction
Slide 73: Thank you
Thank you Annual Analyst Engagement | 22nd February 2021
Slide 74: Investor Day 26 February 2021
INVESTOR DAY 26 FEBRUARY 2021
Slide 75: Disclaimer
Disclaimer Statements in this presentation describing the objectives, projections, estimates and expectations of Jaguar Land Rover Automotive plc and its direct and indirect subsidiaries (the “Company”, “Group” or “JLR”) may be “forward-looking statements” within the meaning of applicable securities
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Slide 77: Agenda
Agenda TOPIC PRESENTER START TIME DURATION 1. Welcome Bennett Birgbauer 12.00 5 mins GROUP TREASURER 2. Introduction Thierry Bolloré 12.05 5 mins CHIEF EXECUTIVE OFFICER 3. Modern Luxury by Design Prof. Gerry McGovern OBE 12.10 15 mins CHIEF CREATIVE OFFICER 4. Reimagine Thierry Bolloré 12.25 30 min
Slide 78: Thierry Bolloré, Chief Executive Officer
Thierry Bolloré Chief Executive Officer 5
Slide 79: Two iconic aspirational brands
Two iconic aspirational brands Strong heritage, modern desirable luxury products Jaguar E-Type Series 1 Roadster 1967 Jaguar F-TYPE 2020 Land Rover Series I 1948 Land Rover Defender 90 2020 6
Slide 80: The creator of the world's most desirable luxury vehicles
The creator of the world’s most desirable luxury vehicles for the most discerning of customers 7
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Slide 82: Three Pillar Strategy
Three Pillar Strategy R A N G E R O V E R D I S C O V E R Y D E F E N D E R DESIGN LEADERSHIP LEADERSHIP LEADERSHIP ENGINEERING LEADERSHIP LEADERSHIP LEADERSHIP INTEGRITY REFINEMENT LEADERSHIP VERSATILITY LEADERSHIP DURABILITY LEADERSHIP - DESIGN AND CAPABILITY - OUR UNIQUE AND COMPELLING COMBINATIO
Slide 83: Land Rover brand attributes
Land Rover brand attributes World’s most luxurious SUVs L A N D R O V E R F O U R K E Y E L E M E N T S MODERNITY RELEVANCE SUSTAINABILITY DESIRABILITY AESTHETIC GRACE INTUITIVE CONSIDERED EMOTIONALLY ENGAGING REDUCTIVE REFINED LIGHTWEIGHT PEERLESS CHARACTER HONEST SANCTUARY INNOVATIVE ELEVATION OF
Slide 84: Compelling & Desirable Portfolio
Compelling & Desirable Portfolio 11
Slide 85: Emotional Connection
Emotional Connection VISCERAL BEHAVIOURAL REFLECTIVE FIRST GLANCE DESIRE JOURNEY AND EXPERIENCE UNWAVERING ADVOCACY 12
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Slide 87: Jaguar Vision
Jaguar Vision 1. Modernise & reimagine Jaguar in the luxury space 2. Target wealthier, younger, urban, creatively minded group 3. Deliver experiences that create emotional engagement 4. All-electric cars from 2025 5. Customer service focus 14
Slide 88: Jaguar brand attributes
Jaguar brand attributes Renaissance to emerge as a pure electric brand from 2025 J A G U A R F O U R K E Y E L E M E N T S MODERN EXUBERANT CONNECTED ASPIRATIONAL PURE DIVERSE ALLURING ART REFINED CREATIVE HUMAN LUXURIOUS SOPHISTICATED DRAMATIC PHYSICAL SPIRITED DESIRABLE DISTINCTIVE INGENIOUS CRAFT
Slide 89: Modern Luxury by Design
MODERN LUXURY BY DESIGN 16
Slide 90: Jaguar Land Rover's Reimagine Strategy
Jaguar Land Rover’s Reimagine Strategy Brands - Responsible modern luxury by design Products - World’s most desirable luxury cars and services Architectures & Powertrain - Electrified, simplified, flexible Collaboration - Synergies with Tata and other partnerships Footprint - Retain, rightsize, repu
Slide 91: The Reimagine strategy addresses the key challenges facing the business
The Reimagine strategy has been designed to address the key challenges facing the business EXTERNAL CHALLENGES INTERNAL CHALLENGES Emissions compliance Jaguar performance Electrification Product range proliferation & launch congestion Covid-19 High operating leverage & Supply disruptions high variab
Slide 92: Reimagine is targeting faster growing luxury segments
Reimagine is targeting faster growing luxury segments GLOBAL CAGR FY19-27 REGIONAL CAGR FY19-27 5.8% 2.8% 2.2% 2.3% 1.6% 1.4% 1.4% 1.1% 0.9% 0.5% (0.2%) (0.5%) (0.4%) Total industry Current Reimagine China North UK Europe Overseas Volumes Segments Segments America Source: IHS December 2020 * JLR Rei
Slide 93: Reimagine will focus on increasing share in most profitable segments
Reimagine will focus on increasing share in these most profitable segments New modern luxury cars expected to drive growth in these segments FY21 MARKET SHARE FY26 STRONGEST PROFITABILITY CARS 12% 18% e.g. Range Rover STRONG PROFITABILITY CARS* 7% 15% e.g. Velar LOWER PROFITABILITY CARS 2% 1% e.g. X
Slide 94: Significant opportunity to grow share of more profitable products
Significant opportunity to grow share of our more profitable products in China, UK and Europe FY21 → FY26 MARKET SHARE CHINA UK EUROPE N. AMERICA OVERSEAS STRONGEST PROFITABILITY CARS 11% → 15% 45% → 45% 14% → 27% 9% → 13% 10% → 21% e.g. Range Rover STRONG PROFITABILITY CARS* 3% → 12% 36% → 58% 11%
Slide 95: Phase out of pure ICE variants by FY26, BEV mix over 60% by FY30
Phase out of pure ICE variants by FY26, with total BEV mix rising to over 60% by FY30 JLR EV MIX 3% 3% 20% 21% 15% 60% 73% 10% 65% 30% FY20 FY26 FY30 ICE MHEV / HEV PHEV BEV 22
Slide 96: Future Land Rover Showroom
Future Land Rover Showroom Delivering modern luxury through its 3 families - 6 BEV variants in the next five years DEFENDER DISCOVERY RANGE ROVER SUV5 Range Rover Defender Range Rover Sport SUV4 Discovery Velar SUV3 Discovery Sport Evoque 23
Slide 97: Architectures to be rationalised with new electric first architectures
Architectures to be rationalised with 3 new electric first architectures With range of electric options for both brands LEGACY – Modular Longitudinal Architecture – Electrified ICE and BEV propulsion MLA flexibility D7a D7x – Includes Range Rover, Range Flex Rover Sport – From FY22/FY23 – Electrifie
Slide 98: Modular Longitudinal Architecture (MLA) - Flexible Propulsion Platform
Modular Longitudinal Architecture (MLA) - Flexible Propulsion Platform BEV and Electrified ICE for our large SUVs BEV PHEV MHEV > HEV Electrified ICE New Range Rover The most capable and refined Land Rover ever New Range Rover Sport The most capable and dynamic sports SUV 25
Slide 99: Electrified Modular Architecture (EMA) - Native BEV Architecture
Electrified Modular Architecture (EMA) - Native BEV Architecture Engineered with simplicity at its heart Future-proofed technology to deliver best in class performance – Engineered around the battery: the highest value commodity – Simple body structure Native BEV architecture - – JLR engineered EDUs
Slide 100: EMA – integrated electrified compact internal combustion engine options
EMA – integrated electrified compact internal combustion engine options Modern duality for mid and smaller SUVs HYBRID & PLUG IN HYBRID DELIVERING PERFORMANCE, EFFICIENCY & CONVENIENCE… – Electrified compact ICE propulsion systems with lean burn technology – Enabling superior performance HEV PHEV …A
Slide 101: Jaguar pure BEV - dedicated architecture
Jaguar pure BEV - dedicated architecture A D E S I G N L E D S O L U T I O N MODERN EXUBERANT CONNECTED ASPIRATIONAL PURE DIVERSE ALLURING ART REFINED CREATIVE HUMAN LUXURIOUS SOPHISTICATED DRAMATIC PHYSICAL SPIRITED DESIRABLE DISTINCTIVE INGENIOUS CRAFTED MODERN LUXURY BY DESIGN 28
Slide 102: Electrified vehicle technology
Electrified vehicle technology FUTURED BATTERIES ELECTRIC DRIVE UNITS HYDROGEN TECHNOLOGY – Future-proofed battery pack - agnostic to – JLR designed and engineered efficient EDUs, – Hydrogen fuel cell electric vehicles provide a cell chemistry for best in class performance lighter propulsion system,
Slide 103: JLR Electrical Vehicle Architecture continuum
Jaguar Land Rover’s Electrical Vehicle Architecture continuum Always on, Always connected, Always up-to-date DOMAIN BASED ARCHITECTURE, SIMPLIFICATION, ENABLING COST & ENABLING LATEST TECHNOLOGY WEIGHT OPTIMISATION – State-of-the-art, domain based Electrical Vehicle Architecture with – JLR in-house
Slide 104: New architectures deliver c.80% of total JLR volume by FY27
New MLA, EMA and pure-BEV architectures deliver c.80% of total Jaguar Land Rover volume by FY27 100% D6a & D7e Jaguar pure-BEV D7a D7u EMA Sales PTA MLA D7x FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
Slide 105: Reimagine electrification timeline
Reimagine electrification timeline Fast electrification across models and new architecture roll out BEV available 100% sales zero Net-zero on all models tailpipe emission carbon vehicles emissions 1st BEV & new EMA MLA architecture architecture Total of 6 60% introduced introduced BEVs sales BEV 202
Slide 106: JLR has established a strong partnership ecosystem
JLR has established a strong partnership ecosystem Supports a strong foundation of technology, knowledge and global reach FUTURE MOBILITY & AUTONOMY CHINA CONSUMER TECHNOLOGY L4 Urban Self-Driving Systems Latest real-time 3D navigation & Technology developed with AMAP from Alibaba (FutureMove) Smart
Slide 107: Focused, data-driven collaborations with global industry leaders
Focused, data-driven collaborations with global industry leaders Future partnerships to enhance competencies, optimise capital allocation & speed to market WITHIN TATA GROUP BEYOND TATA GROUP... Broaden value potential of wider Tata Group Form new models of partnership focused on mutual value creati
Slide 108: Services strategy underpinned by InMotion activities and digital offerings
Our services strategy is underpinned by our established InMotion activities and expanding with digital offerings. This will be core to the future of Jaguar Ventures - Flexible car subscription service - On demand access; 5-star service - Fund investing in early-stage technology, providing insights -
Slide 109: Efficiency of focus
Efficiency of focus Right-sized footprint and a single-minded, collaborative culture MANUFACTURING CAPACITY CLARITY OF PURPOSE REDUCTION OF 25% OVER 5 YEARS Flatter organisation Trust and empower our people 100% to deliver at speed Resized, more agile business Structured to succeed 80% Rationalise n
Slide 110: Plan for CO2 compliance
Plan for CO2 compliance 2019 2020 2021 2022 2023 2024-29 ✓ ✓ ✓ ✓ £35m ✓ Fines ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 37
Slide 111: Net Zero carbon emissions by 2039
Net Zero carbon emissions by 2039 A sustainability rich reimagination of modern luxury Environmental Social Governance BEVs on all models by Clean Hydrogen Responsible Reduction on 2030 - Zero tailpipe fuel cell test mules sourcing operational CO2 emissions by 2036 Net zero carbon emissions by 2039
Slide 112: Frank Ludwig, Chief Transformation Officer
Frank Ludwig Chief Transformation Officer 39
Slide 113: Refocus brings together activity to deliver value and find efficiencies
Refocus brings together existing and additional activity from across the organisation to deliver value, address pain points and find efficiencies TRANSFORMATION OFFICE 1 2 3 4 5 6 PROGRAMME CUSTOMER & DELIVERED END-TO-END QUALITY DELIVERY MARKET CHINA COST PER CAR SUPPLY CHAIN & PERFORMANCE PERFORMA
Slide 114: Refocus builds on the success of Charge+
Refocus builds on the success of Charge+ and is driven directly by the CEO Progress so far... Strong momentum built since initiation of Refocus programme in January... – Chief Transformation Officer reporting to CEO – 35 workstreams launched, e.g. – Strengthened China, Programme Delivery & + New & d
Slide 115: InDigital is the central engine for delivering digital initiatives
InDigital is the central engine for delivering digital initiatives, enabled by IT, with prioritisation driven by the Refocus pillars – Harnessing capability which has already enabled Charge+ savings, e.g. 100 person analytics and intelligent automation Centre of Excellence delivering >£150m p.a. Tra
Slide 116: Refocus will deliver 3% incremental EBIT
Refocus will deliver 3% incremental EBIT in our journey to double-digit margins Refocus will drive and underpin further profitability Today We have stabilised the business to provide a profitable core, delivering 4% EBIT margin and Within 3 years, £2bn of value break-even cashflow Within 5 years, £4
Slide 117: Financial Outlook: Adrian Mardell, CFO
FINANCIAL OUTLOOK Adrian Mardell Chief Financial Officer 44
Slide 118: Reimagine will enable JLR to achieve its financial potential
Reimagine will enable JLR to achieve its financial potential WE HAVE DELIVERED REIMAGINE WILL DELIVER – Encouraging turnaround from weak – Modern luxury by design FY19, despite Covid – Investment target c. £2.5b p.a. – £6b of cash and profit improvements from Project Charge – Positive cashflow from
Slide 119: Environment remains challenging
Environment remains challenging Covid-19: new variants and vaccination roll out Brexit: Bureaucracy, supply chain frictions Emissions compliance & electrification Foreign Exchange impact of stronger pound 46
Slide 120: JLR turnaround plan delivers
JLR turnaround plan delivers Charge+, China and COVID sales recovery driving improvement Free cash flow Start of 1,469 IFRS, £m China sales recovery COVID impact and recovery Charge 562 463 105 (43) (5) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 (415) (60
Slide 121: Lifetime Charge savings £6b
Lifetime Charge savings £6b Delivering cash and ongoing profit improvements £6b £0.2b £0.4b Forecast charge £5.7b £2.0b savings in Q4 FY21 Charge savings delivered to Q3 FY21 Cost & Profits £1.0b improvements £0.2b Working capital efficiencies £2.7b Investment Total Charge savings savings by Q4 FY21
Slide 122: Significant China recovery from FY19 and Covid
Significant China recovery from FY19 and Covid Underpinned by improving quality of sales and dealer profitability SALES QUALITY RETAILER STOCK LEVEL + 35% - 32% -11% 2.2 1.7 -17% -17% 1.5 FY19 FY20 FY21YTD FY19 FY20 FY21YTD LOCAL REGISTRATION RATE RETAILER RETURN ON SALES + 30% + 2.2% points 0.9% 93
Slide 123: Cash flow break-even reduced to c. 400k units
Cash flow break-even reduced to c. 400k units Transformation supported by Charge and Refocus Units 000’s / £mils Sales growth, new models & capacity expansion 600 575 550 500 500 450 425 400 – 450k wholesales break-even range Breakeven Wholesales FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 & B
Slide 124: Future cash flow to achieve net cash from FY25
Future cash flow to achieve net cash from FY25 with investment significantly reduced to target £2.5b £ mils Operating cash flow before investment Investment spending 3,649 3,772 3,433 3,413 3,276 2,514 2,535 Target c. £2,500 Significant investment in new models and capacity expansion FY14 FY15 FY16
Slide 125: One-time restructuring charges for Reimagine
One-time restructuring charges for Reimagine Including c. £1b non-cash write-off of prior investments – Exceptional one-time non-cash write down Q4 FY21 Income FY22 of c. £1 billion for higher previous spending statement Cash flow and certain planned products that will not be completed Non-cash asse
Slide 126: Targeting ≥10% EBIT margin by FY26
Targeting ≥10% EBIT margin by FY26 Driven by Refocus and Reimagine architecture strategy New architectures Jaguar BEV EBIT ≥10% EMA MLA Quality of sales Underlying EBIT c.4% H2 FY21 FY22 FY23 FY24 FY25 FY26 From FY26 Expect >6% margin improvement (3% from Refocus and ≥3% from new architectures) For
Slide 127: Sales volume and financial targets
Sales volume and financial targets Sales, profits and cash flow improving Key metrics FY21 FY22 FY24 FY26 Revenue Not guided Increasing Increasing > £30b EBIT margin Positive ≥4% ≥7% ≥10% Positive PBT* throughout Investment < £2.5b c. £2.5b c. £2.5b c. £3b Free cash flow Near break-even Break-even P
Slide 128: Strong liquidity profile
Strong liquidity profile £6.1b total liquidity pro-forma end December IFRS, £m Total gross debt Total pro-forma liquidity DEBT MATURITY PROFILE 6,8743 pro-forma 6,1341 500 1,935 1,884 undrawn RCF 4,196 4,457 1,935 undrawn RCF 688 104 586 271 766 1,035 900 - 235 400 513 366 476 - Total CY21 CY22 CY23
Slide 129: Sustainable profit growth; net cash from FY25
Sustainable profit growth; net cash from FY25 Focused luxury portfolio and new architectures PRODUCTS IMPROVED PROFIT IMPROVED CASHFLOW NET CASH – Modern luxury by design – Double-digit EBIT margin by – Break-even cashflow in – Net debt decreases FY26 FY21 and FY22 post significantly from FY23 – MLA