Tata Motors Limited · NSE:TMCV
Tata Motors — Q1 FY14 Earnings Presentation
55 slides from Tata Motors's earnings presentation, Aug 9, 2013
Slide 1: Form 6-K Tata Motors Limited
Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the Month of August 2013 Commission File Number: 001-32294 TATA MOTORS LIMITED (Translation of registrant’s name
Slide 2: Table of Contents
Table of Contents TABLE OF CONTENTS Item 1: Form 6-K dated August 8, 2013 along with the Press Release.
Slide 3: Signature
Table of Contents SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised. Tata Motors Limited By: /s/ Hoshang K Sethna Name: Hoshang K Sethna Title: Company Sec
Slide 4: Jaguar Land Rover Interim report three months ended 30 June 2013
Table of Contents > LAND= ae <ROVER JAGUAR Jaguar Land Rover Automotive plc Interim report for the three months ended 30 June 2013
Slide 5: Table of contents
Table of Contents Table of contents Page Management’s discussion and analysis of financial condition and results of operations 2 General trends in performance (including results of operations) 2 Business risks and mitigating factors 6 Employees 6 Liquidity and capital resources 6 Acquisitions and di
Slide 6: Management's discussion and analysis of financial condition and results of operations
Table of Contents Management’s discussion and analysis of financial condition and results of operations The Company has continued to increase sales in the quarter, with revenue for the 3 months of £4,097 million, compared to £3,638 million in Q1 FY13. EBITDA increased to £675 million, £148 million h
Slide 7: Net Income and volume growth
Table of Contents Net Income Net Income for the quarter was £304 million (Q1 FY13: £236 million), with income tax expense for the quarter of £111 million, up from £97 million in Q1 FY13. The effective tax rate has been maintained at 27%, in line with the rate for the full prior year. Overall strong
Slide 8: Performance in key geographical markets on retail basis
Table of Contents Performance in key geographical markets on retail basis Change Q1 FY14 Q1 FY13 (%) UK 16,392 14,483 13% North America 16,195 14,789 10% Europe 19,950 19,378 3% China 20,427 18,465 11% Asia Pacific 5,416 3,952 37% All other markets 16,339 14,691 11% Total JLR 94,719 85,758 10% Unite
Slide 9: Europe and China markets
Table of Contents Europe (excluding Russia and UK) Although the Euro crisis has receded, the Eurozone continues to be in recession with growth slowing even in Germany. Credit rating agencies continue to be negative about Euro area prospects, and the European car industry is expected to have reduced
Slide 10: Business risks, employees, liquidity and capital resources
Table of Contents Business risks and mitigating factors As discussed on pages 94-102, and elsewhere, of the Annual Report 2012-13 of the Company, Jaguar Land Rover is exposed to various business risks including the uncertainty of global economic conditions, fluctuations of currency exchange rates an
Slide 11: Cash flow
Table of Contents Cash flow Net cash provided by operating activities was £116 million in the quarter compared to £486 million during Q1 FY13. Net cash used in investing activities was £492 million in the quarter (Q1 FY13: £555 million). Of this, £35 million (Q1 FY13: £175 million) relates to an inc
Slide 12: Condensed Consolidated Income Statement
Table of Contents Condensed Consolidated Income Statement Three months ended Three months ended 30 June 2013 30 June 2012 (unaudited) (unaudited) Non- Non- Trading operating Trading operating result result Total result result Total Note £m £m £m £m £m £m Revenue 4,097 — 4,097 3,638 — 3,638 Material
Slide 13: Condensed Consolidated Statement of Comprehensive Income
Table of Contents Condensed Consolidated Statement of Comprehensive Income Three months ended Three months ended 30 June 2013 30 June 2012 (unaudited) (unaudited) £m £m Net income 304 236 Other comprehensive income/(loss): Cash flow hedges: effective portion of change in fair value of derivative ins
Slide 14: Condensed Consolidated Balance Sheet
Table of Contents Condensed Consolidated Balance Sheet 30 June 2013 31 March 2013 £m £m Note (unaudited) (audited) Non-current assets Equity accounted investees 55 60 Other financial assets 200 195 Property, plant and equipment 2,509 2,335 Pension asset 17 — — Intangible assets 3,691 3,522 Other ass
Slide 15: Condensed Consolidated Balance Sheet (continued)
Table of Contents Condensed Consolidated Balance Sheet (continued) 30 June 2013 31 March 2013 £m £m Note (unaudited) (audited) Equity attributable to shareholders Ordinary shares 1,501 1,501 Capital redemption reserve 167 167 Reserves 15 2,022 1,871 Equity attributable to shareholders 3,690 3,539 To
Slide 16: Condensed Consolidated Statement of Changes in Equity
Table of Contents Condensed Consolidated Statement of Changes in Equity Capital redemption Total Ordinary shares reserve Reserves Equity £m £m £m £m Balance at 31 March 2013 (audited) 1,501 167 1,871 3,539 Income for the period — — 304 304 Other comprehensive loss for the period — — (3) (3) Total co
Slide 17: Condensed Consolidated Cash Flow Statement
Table of Contents Condensed Consolidated Cash Flow Statement Three months ended Three months ended 30 June 30 June 2013 2012 (unaudited) (unaudited) £m £m Cash flows from operating activities Net income attributable to shareholders 304 236 Adjustments for: Depreciation and amortisation 202 121 Forei
Slide 18: Condensed Consolidated Cash Flow Statement (continued)
Table of Contents Condensed Consolidated Cash Flow Statement (continued) Three months ended Three months ended 30 June 30 June 2013 2012 (unaudited) (unaudited) £m £m Cash flows from financing activities Finance expenses and fees paid (46) (60) Proceeds from issuance of short term debt 1 21 Repaymen
Slide 19: Notes: Accounting policies
Table of Contents Notes (forming part of the condensed interim financial statements) 1 Accounting policies Basis of preparation The information for the three months ended 30 June 2013 is unaudited and does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The con
Slide 20: Notes: Research and development, foreign exchange
Table of Contents Notes (continued) 2 Research and development Three months ended Three months ended 30 June 30 June 2013 2012 (unaudited) (unaudited) £m £m Total R&D costs 292 262 R&D expensed (50) (47) Development costs capitalised 242 215 Interest capitalised 25 28 Total internally developed inta
Slide 21: Notes: Finance income and expense
Table of Contents Notes (continued) 4 Finance income and expense Recognised in net income Three months ended Three months ended 30 June 30 June 2013 2012 (unaudited) (unaudited) £m £m Finance income 9 8 Total finance income 9 8 Total interest expense on financial liabilities measured at amortised co
Slide 22: Notes: Other financial assets, inventories
Table of Contents Notes (continued) 6 Other financial assets – current 30 June 2013 31 March 2013 (unaudited) (audited) £m £m Advances and other receivables recoverable in cash 13 24 Derivative financial instruments 78 31 Restricted cash 76 110 Other 17 11 184 176 7 Inventories 30 June 2013 31 March
Slide 23: Notes: Capital expenditure, other financial liabilities
Table of Contents Notes (continued) 10 Capital expenditure Capital expenditure in the period was £261 million (3 month period to 30 June 2012: £161 million) on fixed assets and £284 million (3 month period to 30 June 2012: £255 million) was capitalised as intangible engineering assets. There were no
Slide 24: Notes: Provisions
Table of Contents Notes (continued) 12 Provisions (continued) Product warranty 31 March 30 June 2013 2013 (unaudited) (audited) £m £m Opening balance 742 569 Provision made during the period 89 462 Provision used during the period (94) (287) Impact of discounting — (2) Closing balance 737 742 Produc
Slide 25: Notes: Provisions (continued)
Table of Contents Notes (continued) 12 Provisions (continued) Product warranty provision The group offers warranty cover in respect of manufacturing defects, which become apparent within a year and up to five years after purchase, dependent on the market in which the purchase occurred. Product liabi
Slide 26: Notes: Interest bearing loans and borrowings
Table of Contents Notes (continued) 14 Interest bearing loans and borrowings 31 March 30 June 2013 2013 (unaudited) (audited) £m £m EURO MTF listed bond 1,836 1,839 Loans from banks 232 328 Redeemable preference shares classified as debt — — Other loans — — Finance lease liabilities 22 23 2,090 2,19
Slide 27: Notes: Other reserves
Table of Contents Notes (continued) 15 Other reserves The movement of reserves and accumulated deficit is as follows: Profit & Translation Hedging Pension loss Total reserve reserve reserve reserve reserves £m £m £m £m £m Balance at 1 April 2013 (383) (197) (800) 3,251 1,871 Net profit for the perio
Slide 28: Notes: Other reserves (continued), dividends
Table of Contents Notes (continued) 15 Other reserves (continued) Profit & Translation Hedging Pension loss Total reserve reserve reserve reserve reserves £m £m £m £m £m Balance at 1 April 2012 (383) (20) (526) 2,186 1,257 Net profit for the year — — — 236 236 Movements in employee benefit plan — —
Slide 29: Notes: Employee benefits
Table of Contents Notes (continued) 17 Employee benefits Jaguar Land Rover Limited and Land Rover, have pension arrangements providing employees with defined benefits related to pay and service as set out in the rules of each fund. The following table sets out the disclosure pertaining to employee b
Slide 30: Notes: Employee benefits (continued)
Table of Contents Notes (continued) 17 Employee benefits (Continued) For the valuation at 31 June 2013 and 31 March 2013, the mortality assumptions used are the SAPS base table, in particular S1NxA tables and the Light table for members of the Jaguar Executive Pension Plan. A scaling factor of 115%
Slide 31: Notes: Commitments and contingencies, capital management
Table of Contents Notes (continued) 18 Commitments and contingencies (Continued) There are guarantees provided in the ordinary course of business of £1 million (31 March 2013: £Nil). 19 Capital management The Company’s objectives for managing capital are to create value for shareholders, to safeguar
Slide 32: Notes: Related party transactions
Table of Contents Notes (continued) 20 Related party transactions (continued) Three months ended 30 June 2013 Three months ended 30 June 2012 With With immediate With With immediate associates and or ultimate associates and or ultimate joint ventures parent joint ventures parent (unaudited) (unaudit
Slide 33: Jaguar Land Rover Automotive plc address
Table of Contents Jaguar Land Rover Automotive plc Abbey Road Whitley Coventry CV3 4LF 29
Slide 34: Jaguar Land Rover results for quarter ended 30 June 2013 under IFRS
Table of Contents Jaguar 7the August quarter Land 2013 ended Rover30results June 2013 under IFRS for
Slide 35: Disclaimer
Table of Contents Statements Disclaimer “JLR”) could operates, — 2Consolidated Q1make FY14 FY13 may changes in abe represents results difference this “forward-looking in presentation Government of Jaguar the to the 3 month Land Company’s describing statements” regulations, period Roverthe operations
Slide 36: Participants
Table of Contents Kenneth Participants 3¡Bennett Treasurer CFO Jaguar Birgbauer Gregor Jaguar Land C.Land Ramakrishnan Rover Rover ¡ CFO Tata Motors
Slide 37: Agenda
Table of Contents Key topics Agenda Financial Looking 4Closing Q&A ahead performance Page 17 / other developments 5 14
Slide 38: Q1 FY14 financial highlights
Table of Contents Q1 FY14 Retail EBITDA PBT 5Free cash ofvolumes £415m, £675m, financial outflow 95k upup of £82 highlights for £148m £341m on thethe quarter, with after Record prior EBITDA investment, up year sales, 10%margin from revenue reflecting prior ofand 16.5%, year. higher profits Revenue u
Slide 39: Key financial metrics - IFRS
Table of Contents Key Quarter (£ Retail Revenues EBITDA Profit 621Free Cash Includes millions, financial metrics—IFRS cash before volumes from ended 675 %flow (IFRS) cash unless 16.5% operating tax 527 metrics 30 (1) (‘000 and 415 4,097 June 148 (341) stated) 14.5% cash 333 units) –activities Q1 3,6
Slide 40: Strong overall performance
Table of Contents Strong Land new EBITDA in PBT 7PAT Q1all-wheel of of Rover FY14) overall £304m £415m, of £675m retail —richer drive performance reflects upvolume £82m (margin and product ansmaller due effective upof5k tomix 16.5%), higher units engine supported tax(7%) rate EBITDA, up options £148
Slide 41: Quarterly retail volumes by carline
Table of Contents Quarterly Jaguar 14 81XK Land Up 77 New 27 Range 11 12 3Freelander Defender Q12Evoque 410 7Range 13 17 72 28% 7% FY13 XJRange Rover F-TYPE Rover –4 Q1 4Q1 Rover retail XF 11 Rover –FY14 FY14 Sport Discovery Q1volumes FY14 vs Sport Range Q1vs by 27 FY13 Rover Q1 carline FY13
Slide 42: Quarterly retail volumes by geography
Table of Contents Quarterly 14 12 11 15 24Q 18 20 (ROW) 17.3% markets UK North 5.7% 17.2% (ex. 17.1% 94,719 21.6% 21.1% Europe 19 17 35Asia Up 16 113 Q1 All Russia) China 85,758 Land 124313 20 17 15 13% 10% FY14 3% 37% 11% FY13 other Russia) Pacific Rover America 21.5% units 22.6% 16 markets UK Q1 r
Slide 43: Consolidated income statement - IFRS
Table of Contents Consolidated Quarter Revenues Material EBITDA Depreciation Foreign (1) Net (2) Income Profit 1. 2. 10 Includes finance before after statement tax ended exch. cost 675 4,097 tax mark £(5)m expense income tax and of income 527 gain/(loss) 30 304 sales 3,638 415 to amortisation June s
Slide 44: Consolidated cash flow - IFRS
Table of Contents Highchange Consolidated Quarter Working Cash Other Free Investment Net 11 cash levels from flow (including ended capital flow from operating in ofcash fixed financial cash investment 30 (before operations changes finance June flow—IFRS & and activities cash financing) (£ deposits i
Slide 45: Strong liquidity and financing structure
Table of Contents Strong Key 30 (£ Cash Long Total 12 millions, June financial and liquidity equity term financing 30financial cash undrawn June unless 3,690 indicators—IFRS 3,150 equivalents structure 3,081 stated) deposits credit 3,228 609 Change facilities 1,405 (78) 2,215 Total2,157 2,332 2013 d
Slide 46: Agenda
Table of Contents Key topics Agenda Financial Looking Closing Q&A ahead performance Page 17 / other developments 5 14
Slide 47: Recent developments
Table of Contents Recent Start •April Best AUTOWEEK World 14 A The Won front-engined, in of 2013 F-TYPE numerous Car launch: Show retail Design sales is All-New awards constructed rear-wheel of ThetheAll-New Jaguar since Yeararound drive award itsF-TYPE Jaguar launch, convertible, theF-TYPE fourth i
Slide 48: Other recent developments
Table of Contents Other –Recent Paid Standard Also 15New Jaguar 2nd indevelopments Range J.D.Power July Named annual and2013, Poor’s Rover dividend Best survey increased credit achieves Brand results torating Tata in undrawn highest thefor Motors increased UKboth APEAL revolving VOSS of thefrom £150
Slide 49: Summary
Table of Contents Strong Summary -Insuccessfully continuing the 2013/14 performance tolaunching fiscal buildin invest monitor generate sales year, inthe economic strong more themomentum focus first new new operating quarter isRange and on: products sales with Rover cash the trends and flows Sport ne
Slide 50: Agenda
Table of Contents Key topics Agenda Financial Looking Closing Q&A ahead performance Page 17 / other developments 5 14
Slide 51: Q&A
Table of Contents Q&A
Slide 52: Additional slides
Table of Contents Additional slides
Slide 53: Quarterly wholesale volumes by carline
Table of Contents Quarterly Jaguar Up 19 X 54F-Type Land 72 7Flat 12 New 10 11 3Freelander Defender Q1 J310 XF Evoque 13 XK 72 7 Discovery 58% FY13 Range Rover – Q1 Q1 wholesale Rover –FY14 FY14 Q1 FY14 vs Sport volumes Q1vs 27 FY13 Q1 Range by FY13 carline Rover 27 Range Rover Sport Range Rover
Slide 54: Quarterly wholesale volumes by geography
Table of Contents 3UK 12 13 10 19 Q America 6.5% North 90,620 21.2% 19.8% 18 Flat 645116 Up 14 15 217 Q1 All markets Asia (ROW) Pacific 4.5% Europe (ex. 83,452 22.2% China 21.7% Land 123415 19 18 23% FY14 50% 13% FY13 1other Europ Russia) 18.3% Pacific 18.4% America Rover America units North 16.2% 1
Slide 55: Key financial indicators - product and other investment
Table of Contents Product Key Quarter (£ R&D Investment 266 Total Of 22 millions, which 162 financial R&D product expense ended and 104 capitalised in expense unless other intangible and indicators—IFRS tangible Capitalised 30 June other investment stated) 292 508 and assets investment 262 377 2013