Tata Motors Limited · NSE:TMCV
Tata Motors — Q1 FY17 Earnings Presentation
26 slides from Tata Motors's earnings presentation, Aug 30, 2016
Slide 1: Jaguar Land Rover Results for the Three Months Ended 30 June 2016
JAGUAR LAND ROVER SPECIAL VEHICLE OPERATIONS JAGUAR LAND ROVER RESULTS FOR THE THREE MONTHS ENDED 30 JUNE 2016 26th AUGUST 2016
Slide 2: Disclaimer
DISCLAIMER JAGUAR LAND ROVER 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 app
Slide 3: Participants
PARTICIPANTS JAGUAR LAND ROVER Kenneth Gregor CFO, Jaguar Land Rover Bennett Birgbauer Treasurer, Jaguar Land Rover C. Ramakrishnan Group CFO, Tata Motors -3-
Slide 4: Agenda
AGENDA JAGUAR LAND ROVER Financial performance for the quarter 5 Other developments 13 Closing Q&A 16 -4-
Slide 5: Financial Performance Three Months Ended June 2016
JAGUAR LAND ROVER FINANCIAL PERFORMANCE THREE MONTHS ENDED 30 JUNE 2016 -5-
Slide 6: Q1 FY17 Financial Results: Solid Sales Volumes and Revenue
Q1 FY17 FINANCIAL RESULTS JAGUAR LAND ROVER SOLID SALES VOLUMES AND REVENUE • Retail sales of 132.7k, up 15.5%, compared to Q1 FY16 • Revenue of £5.5b, up from £5.0b • PBT of £399m, down from £638m, primarily reflecting higher volume and mix higher depreciation and amortisation non-recurrence of fav
Slide 7: Key Financial Metrics
KEY FINANCIAL METRICS JAGUAR LAND ROVER SOLID SALES VOLUMES AND REVENUE Quarter ended 30 June (£ millions, unless stated) 2016 2015 Change 30 22 Retail volumes (‘000 units) 132.7 114.9 17.8 Wholesale volumes (‘000 units) 1 120.8 110.6 10.2 Revenues 5,461 5,002 459 EBITDA2 672 821 (149) EBITDA % 12.3
Slide 8: Record Q1 Retail Sales of 132.7k Up 16%, All Regions Up
RECORD Q1 RETAIL SALES OF 132.7K UP 16% JAGUAR LAND ROVER ALL REGIONS UP Units in ‘000 North America UK China Q1 FY17 Up 17% Up 18% Up 19% North America, 18% UK, 20% 26.9 25.7 20.9 24.6 22.8 21.6 Europe (ex. Russia), 25% China Region, 19% 19.0 5.3 14.0 17.9 17.8 17.1 13.2 8.2 7.9 Overseas, 3.9 6.6 4
Slide 9: Record Q1 Retail Sales: Strong Sales of F-PACE, XE and Discovery Sport
RECORD Q1 RETAIL SALES OF 132.7K UP 16% JAGUAR LAND ROVER STRONG SALES OF F-PACE, XE AND DISCOVERY SPORT Units in ‘000 Jaguar - Q1 FY17 vs Q1 FY16 Up 76% 31.8 2.7 F-TYPE 18.1 9.5 F-PACE 3.2 2.5 XJ 3.1 7. 9 XF 8.8 XE 9.2 0.1 2.9 XK Q1 FY16 Q1 FY17 Land Rover - Q1 FY17 vs Q1 FY16 Up 4% 96.8 100.9 12.4
Slide 10: Key Profit Drivers
KEY PROFIT DRIVERS JAGUAR LAND ROVER HIGHER SALES OFFSET PRIMARILY BY FX REVALUATION • PBT of £399m, down from £638m in Q1 FY16 explained by: • Favourable volume and mix • Unfavourable FX revaluation (£291m) reflecting: — Favourable FX revaluation in Q1 FY16 (£205m -- mainly debt and unrealized hedg
Slide 11: Cash Flow
CASH FLOW JAGUAR LAND ROVER EBITDA FUNDS INVESTMENT BUT OFFSET BY INVENTORY (£ millions, unless stated) EBITDA Working capital and non cash accruals* Tax paid Cash flow from operations Investment in fixed and intangible assets Finance income and other (includes FX revaluation) Free cash flow (before
Slide 12: Exciting New Products
EXCITING NEW PRODUCTS JAGUAR LAND ROVER RECENT AND UPCOMING PRODUCTS TO DRIVE GROWTH F-PACE – Launched in April 2016 XE – Launched in US May 2016 Evoque Convertible – Launched in Jun 2016 China JV XF L – Launching H2 2016 -12 -
Slide 13: Other Developments: Manufacturing and Operations
OTHER DEVELOPMENTS JAGUAR LAND ROVER MANUFACTURING AND OPERATIONS Special Vehicle Operations • Brand new Technical Centre, near Coventry, representing a £20m investment • Investment includes: • Manufacturing Facility • Paint Facility • Technical Suite • VIP Commissioning/Viewing Suites Brazil plant
Slide 14: June Brexit Referendum Implications for JLR
JUNE 23 BREXIT REFERENDUM JAGUAR LAND ROVER IMPLICATIONS FOR JLR The implications for JLR of BREXIT include: • The extent to which the Pound remains weaker • Any incremental tariffs that might result following exit from the EU • Any impact on economic growth and consumer confidence in the UK and the
Slide 15: Looking Ahead: Continuing to Invest to Drive Profitable Growth
JAGUAR LAND ROVER LOOKING AHEAD CONTINUING TO INVEST TO DRIVE PROFITABLE GROWTH • JLR’s strategy continues to be to invest in new products, technology and manufacturing capacity to grow profitably and JLR continues to expect investment spending to be in the region of £3.75b in FY17 • Jaguar Land Rov
Slide 16: Q&A
JAGUAR LAND ROVER Q&A KENNETH GREGOR CFO, JAGUAR LAND ROVER -16 -
Slide 17: Thank You
JAGUAR LAND ROVER Thank You Kenneth Gregor CFO, Jaguar Land Rover C. Ramakrishnan Group CFO, Tata Motors Bennett Birgbauer Treasurer, Jaguar Land Rover Jaguar Land Rover Investor Relations investor@jaguarlandrover.com Tata Motors Investor Relations Ir_tml@tatamotors.com Jaguar Land Rover Abbey Road,
Slide 18: Additional Slides
JAGUAR LAND ROVER ADDITIONAL SLIDES -18 -
Slide 19: Income Statement
JAGUAR LAND ROVER INCOME STATEMENT SOLID SALES VOLUMES AND REVENUE (£ millions, unless stated) Revenues Material and other cost of sales Employee costs Other (expense) /Income(1) Product development costs capitalised EBITDA Depreciation and amortisation Undesignated debt/unrealised hedges MTM(2) Net
Slide 20: Wholesale Volumes by Geography
JAGUAR LAND ROVER WHOLESALE VOLUMES BY GEOGRAPHY Q1 FY17 120,776 UNITS, UP 9% YEAR-ON-YEAR Units in ‘000 North America Up 34% 29.7 22.1 20.8 17.5 4.6 8.9 Q1 FY16 Q1 FY17 UK Up 7% 21.2 22.7 14.5 16.0 6.6 6.7 Q1 FY16 Q1 FY17 China* Down (18)% 15.6 12.7 13.0 7.8 2.6 4.9 Q1 FY16 Q1 FY17 Q1 FY17 North UK
Slide 21: Wholesale Volumes by Carline
JAGUAR LAND ROVER WHOLESALE VOLUMES BY CARLINE Q1 FY17 STRONG SALES OF F-PACE, XE AND DISCOVERY SPORT Units in ‘000 Jaguar - Q1 FY17 vs Q1 FY16 Up 63% 34.6 3.0 21.2 13.4 F-TYPE F-PACE 3.8 3.2 2.5 XJ - 6.9 XF 8.9 8.8 XE 0.1 5.3 0.0 XK Q1 FY16 Q1 FY17 Land Rover - Q1 FY17 vs Q1 FY16 Down (4)% 89.4 86.
Slide 22: Financing Structure: Strong Liquidity
JAGUAR LAND ROVER FINANCING STRUCTURE STRONG LIQUIDITY As at 30 June (£ millions, unless stated) 2016 2015 Change Cash and cash equivalents 2,447 2,021 426 Financial deposits 1,302 1,237 65 Cash and financial deposits 3,749 3,258 491 Undrawn 5 years revolving credit facilities 1,870 1,485 385 Total
Slide 23: Financing Structure: Strong Liquidity
JAGUAR LAND ROVER FINANCING STRUCTURE STRONG LIQUIDITY £ million 7,000 17% 6,000 15% 5,619 5,000 4,743 1,870 4,000 1485 3,000 2,000 3,749 1,870 3,258 1,000 771 521 371 371 400 Liquidity Q1 Liquidity Q1 FY16 FY17 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 Cash and financial deposits Bonds Undrawn R
Slide 24: Product and Other Investment
JAGUAR LAND ROVER PRODUCT AND OTHER INVESTMENT CAPITAL EXPENDITURE TO GROW THE BUSINESS Quarter ended 30 June (£ millions, unless stated) 2016 2015 Change R&D expense Capitalised 322 315 7 Expensed 85 64 21 Total R&D expense 407 379 28 Investment in tangible and other intangible assets 285 397 (112)
Slide 25: FX Hedging and Revaluation
JAGUAR LAND ROVER FX HEDGING AND REVALUATION (EXCLUDING OPERATIONAL EXCHANGE) Quarter ended 30 June (£ millions, unless stated) 2016 2015 Change Realized FX Hedges1 (123) (109) (14) Revaluation of Current Assets/Liabilities and Other2 (84) 34 (118) Total FX impacting EBITDA (excluding operational ex
Slide 26: Jaguar Land Rover Automotive plc Interim Report
JAGUAR LAND ROVER Jaguar Land Rover Automotive plc Interim Report For the three month period ended 30 June 2016 Company registered number: 06477691 Contents Management’s discussion and analysis of financial condition and results of operations Market environment Jaguar Land Rover volume performance R