Tata Motors Limited · NSE:TMCV
Tata Motors — Q1 FY18 Earnings Presentation
25 slides from Tata Motors's earnings presentation, Aug 10, 2017
Slide 1: Jaguar Land Rover Results for the Quarter Ended 30 June 2017
JAGUAR LAND ROVER RESULTS FOR THE QUARTER ENDED 30 JUNE 2017 9th AUGUST 2017
Slide 2: 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
Slide 3: Agenda
AGENDA Financial performance for the quarter 4 Other developments 12 JLR Strategy 14 Looking ahead 15 Closing Q&A Company participants Kenneth Gregor, CFO, Jaguar Land Rover C. Ramakrishnan, Group CFO, Tata Motors Bennett Birgbauer, Treasurer, Jaguar Land Rover
Slide 4: Key Financial Metrics: Strong Revenue, PBT Up with One-off Pension Credit
KEY FINANCIAL METRICS STRONG REVENUE, PBT UP WITH ONE-OFF PENSION CREDIT* £ millions Revenue Underlying EBITDA PBT 900 20% 800 18% 672 16% 5,355 5,599 700 14% 595 600 12.5% 12% 500 442 10% 399 400 7.9% 8% 300 6% 200 4% 100 2% —0% Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 * Q1 FY18 PBT includes
Slide 5: Key Financial Metrics: Strong Revenue, PBT Up with One-off Pension Credit
KEY FINANCIAL METRICS STRONG REVENUE, PBT UP WITH ONE-OFF PENSION CREDIT* Quarter ended 30 June (£ million, unless stated) 2017 2016 Change Retail volumes (‘000 units) (inc CJLR) 137.5 132.8 4.7 Wholesale volumes (‘000 units) (exc CJLR) 117.9 120.8 (2.9) Revenue 5,599 5,355 244 Underlying EBITDA 442
Slide 6: Q1 FY18 Retails 137,463 Up 3.5%
Q1 FY18 RETAILS 137,463 UP 3.5% STRONG CHINA AND US SALES, UK DOWN AFTER TAX CHANGE Units in ‘000 North UK Europe China Overseas America YoY +15.6% (14.3)% 0.0% +30.3% (13.9)% 33.5 33.5 28.4 23.1 18.9 20.7% 16.8% 24.4% 13.8% 24.4% Volumes include sales from Chery Jaguar Land Rover – Q1 FY18 20,309 u
Slide 7: Q1 FY18 Retails 137,463 Up 3.5%: New Discovery Launched
Q1 FY18 RETAILS 137,463 UP 3.5% NEW DISCOVERY LAUNCHED IN CHINA AND US IN MAY Units in ‘000 28.0 24.8 19.9 17.6 14.1 8.9 9.6 9.3 2.4 2.7 0.1 - XE XF XJ F-PACE F-TYPE Discovery Discovery RR Evoque RR Velar RR Sport Range Rover Defender Sport YoY (0.4) 1.7 (0.1) 8.2 0.0 (1.1) (3.1) (1.0) 0.1 (0.7) 1.7
Slide 8: Year on Year Profit Walk
YEAR ON YEAR PROFIT WALK £ millions Pension credit: £437m FY17 Tianjin recovery: £50 £387 £595 Continuation of FY17 trend —particularly US £399 £(28) £(93) £(96) £(62) £88 PBT Q1 FY17 Volume, mix and Net pricing Material and D&A Exchange & One-off items PBT Q1 FY18 market Operating costs commodities
Slide 9: Quarter on Quarter Profit Walk
QUARTER ON QUARTER PROFIT WALK Q1 SALES CALENDARISATION, ONE-OFF PENSION CREDIT £ millions Wholesale volumes down 41k units vs Q4 FY17 £(531) Pension credit: £437m £676 FY17 Tianjin recovery: £15 £422 £595 £104 £(1) £(49) £(26) PBT Q4 FY17 Volume, mix and Net pricing Material and D&A Exchange & One-
Slide 10: Cash Flow Investment and Working Capital Calendarisation
CASH FLOW INVESTMENT AND WORKING CAPITAL CALENDARISATION Quarter ended 30 June (£ millions) 2017 2016 Change 38 30 PBT 595 399 196 Depreciation and amortisation 450 388 62 Tax paid (104) (59) (45) Other (496) (30) (467) Cash profit after tax 445 698 (254) Total product and other investment (995) (69
Slide 11: Strong Liquidity £4.1B Cash & £1.9B Undrawn RCF
STRONG LIQUIDITY £4.1B CASH & £1.9B UNDRAWN RCF £ millions Total cash Debt maturity profile 4,108 3,749 3,501 139 £1.9b undrawn 3,362 RCF extended to 2022 with no financial covenant 500 784 539 571 384 384 300 400 - Q1 FY17 Q1 FY18 CY18 CY19 CY20 CY21 CY22 CY23 CY24 Total Debt Bonds Other debt: Disc
Slide 12: Exciting New Products to Drive Future Growth
EXCITING NEW PRODUCTS TO DRIVE FUTURE GROWTH Discovery (US & China May 2017) Range Rover Velar (July 2017) XF Sportbrake (This summer) E-PACE (This winter) I-PACE (2018) Watch this space! First premium SUV BEV - 12 -
Slide 13: July Retails 46,074 Up 3.6%
JULY RETAILS 46,074 UP 3.6% NEW DISCOVERY RAMPING UP, RANGE ROVER VELAR STARTED Units in ‘000 9.2 7.5 6.0 5.7 4.4 4.3 3.0 2.7 1.7 0.8 0.8 0.0 XE XF XJ F-PACE F-TYPE Discovery Discovery RR Evoque RR Velar RR Sport Range Rover Discontinued Sport YoY (0.8) 0.5 (0.1) 0.2 (0.1) 0.8 0.5 (0.8) 1.7 (0.7) 0.
Slide 14: JLR Strategic Priorities — ACES
JLR STRATEGIC PRIORITIES — ACES AUTONOMOUS CONNECTED ELECTRIC SHARED JLR vehicles currently Investment in technology I-PACE Battery Electric InMotion Ventures include level 2 features & infrastructure to Vehicle on sale 2018 invests in the future of support higher levels of transport and mobility In
Slide 15: Looking Ahead: Continuing to Invest to Drive Profitable Growth
LOOKING AHEAD CONTINUING TO INVEST TO DRIVE PROFITABLE GROWTH JLR’s strategy is to achieve sustainable profitable growth by investing proportionally more in new products, technology and manufacturing capacity. Consistent with this, FY18 investment spending is expected to be in the region of £4 – 4.3
Slide 16: Thank You
Thank You Kenneth Gregor Jaguar Land Rover CFO, Jaguar Land Rover Abbey Road, Whitley, Coventry CV3 4LF C. Ramakrishnan Jaguarlandrover.com Group CFO, Tata Motors Bennett Birgbauer Treasurer, Jaguar Land Rover Jaguar Land Rover Investor Relations investor@jaguarlandrover.com Tata Motors Investor Rel
Slide 17: Additional Slides
ADDITIONAL SLIDES
Slide 18: China Joint Venture Increased Sales and Profits
CHINA JOINT VENTURE INCREASED SALES AND PROFITS Units in 000’s £ millions JLR share of profit Retail volumes 77 20.3 14.0 45 On sale from CJLR 2018 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 - 18—Note: Includes local market incentive of £31m in Q1 FY18 and £6m in Q1 FY17
Slide 19: Income Statement
INCOME STATEMENT STRONG REVENUE, PBT UP WITH ONE-OFF PENSION CREDIT* Quarter ended 30 June (£ millions) 2017 2016 Change 38 30 Revenues 5,599 5,355 244 Material and other cost of sales (3,565) (3,241) (324) Employee costs (656) (605) (51) Other (expense) /income(1) (1,291) (1,159) (132) Product deve
Slide 20: Q1 FY18 Wholesales of 117,916 Down 2.4%
Q1 FY18 WHOLESALES OF 117,916 DOWN 2.4% REFLECTS PRODUCTION SCHEDULES Units in ‘000 North UK Europe China Overseas America YoY (0.8)% +13.8% (11.9)% +7.6% (12.3)% 31.3 29.4 25.8 17.7 13.7 25.0% 15.0% 21.9% 26.5% 11.6% Volumes exclude sales from Chery Jaguar Land Rover – Q1 FY18 20,560 units, Q1 DFY1
Slide 21: Q1 FY18 Wholesales of 117,916 Down 2.4%: By Model
Q1 FY18 WHOLESALES OF 117,916 DOWN 2.4% F-PACE, RANGE ROVER & VELAR OFFSET BY LOWER XE, XF Units in ‘000 21.2 19.0 17.8 18.1 13.5 11.7 6.4 3.5 3.0 2.0 1.8 0.0 XE XF XJ F-PACE F-TYPE Discovery Discovery RR Evoque RR Velar RR Sport Range Rover Discontinued Sport YoY (2.4) (3.3) 0.5 4.4 (1.1) (0.6) (0.
Slide 22: July Retails 46,074 Up 3.6%
JULY RETAILS 46,074 UP 3.6% CHINA UP WITH OTHER MARKETS SLIGHTLY WEAKER Units in ‘000 North UK Europe China Overseas America YoY (2.7)% (1.0)% (5.7)% +34.4% (6.1)% 11.6 10.2 10.1 7.6 6.6 22.1% 16.4% 14.3% 21.9% 25.3% Volumes include sales from Chery Jaguar Land Rover – Jul FY18 6,673 units, July FY1
Slide 23: Product and Other Investment
PRODUCT AND OTHER INVESTMENT CAPITAL EXPENDITURE TO GROW THE BUSINESS Quarter ended 30 June (£ millions) 2017 2016 Change 38 30 R&D expense Capitalised 355 322 33 Expensed 94 85 9 Total R&D expense 449 407 42 Investment in tangible and other intangible assets 546 285 261 Total product and other inve
Slide 24: Foreign Exchange Impact on Profitability
FOREIGN EXCHANGE IMPACT ON PROFITABILITY Quarter ended 30 June (£ millions) 2017 2016 Change 38 30 Operational exchange n/a n/a 259 Realised FX hedges and other (454) (115) (339) Revaluation of current assets and liabilities including warranty (365) (3) (94) (86) (271) 83 Total FX impacting EBITDA &
Slide 25: Automotive plc Interim Report for the Three Months Ended 30 June 2017
Jaguar Land Rover Automotive plc Interim Report For the three month period ended 30 June 2017 Company registered number: 06477691 Contents Management’s discussion and analysis of financial condition and results of operations Key metrics/highlights for Q1 FY18 results Market environment Total automot