Tata Motors Limited · NSE:TMCV
Tata Motors — Q2 FY17 Earnings Presentation
25 slides from Tata Motors's earnings presentation, Nov 15, 2016
Slide 1: Results for the Three Months Ended 30 September 2016
JAGUAR LAND ROVER JAGUAR LAND ROVER RESULTS FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2016 14th NOVEMBER 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: Q2 FY17 Financial Results
JAGUAR LAND ROVER Q2 FY17 FINANCIAL RESULTS STRONG SALES VOLUMES AND REVENUE, PBT UP Retail sales of 142.5k, up 29.3%, compared to Q2 FY16 Revenue of £6.0b, up from £4.8b PBT £280m, up from the loss of £157m a year ago primarily reflecting: Favourable volume and mix offset partially by manufacturing
Slide 5: Key Financial Metrics
KEY FINANCIAL METRICS STRONG SALES VOLUMES AND REVENUE, PBT UP JAGUAR LAND ROVER Quarter ended 30 September 6 months ended 30 September (£ millions, unless stated) 2016 2015 Change 2016 2015 Change Retail volumes (‘000 units) 142.5 110.2 32.3 275.2 225.1 50.1 Wholesale volumes (‘000 units)1 124.2 11
Slide 6: Record Q2 Retail Sales of 142.5k Up 29%, All Regions Up
RECORD Q2 RETAIL SALES OF 142.5k UP 29% ALL REGIONS UP JAGUAR LAND ROVER Units in ‘000 North America Up 39% 30.2 21.7 19.9 18.0 10.4 3.7 Q2 FY16 Q2 FY17 UK Up 28% 31.0 24.2 16.1 21.2 8.1 9.8 Q2 FY16 Q2 FY17 China* Up 49% 29.5 19.8 13.5 5.1 9.9 12.2 2.5 6.1 Q2 FY16 Q2 FY17 Q2 FY17 North America, UK,
Slide 7: Record Q2 Retail Sales: Strong F-PACE, XE, Evoque, Discovery Sport
RECORD Q2 RETAIL SALES OF 142.5k UP 29% STRONG F-PACE, XE, EVOQUE, DISCOVERY SPORT SALES JAGUAR LAND ROVER Units in ‘000 Jaguar - Q2 FY17 vs Q2 FY16 Up 84% 41.7 2.6 22.6 17.2 F-TYPE 2.9 F-PACE 2.8 XJ 2.7 7.6 8.0 XF* XE 9.3 11.2 XK 0.1 Q2 FY16 Q2 FY17 Land Rover - Q2 FY17 vs Q2 FY16 Up 15% 100.8 87.6
Slide 8: Key Profit Drivers
KEY PROFIT DRIVERS HIGHER SALES AND MIX OFFSET BY ONE TIME ITEMS JAGUAR LAND ROVER Revenue of £6.0b up from £4.8b in Q2 FY16, reflecting higher wholesale volumes (up 12%) and favourable FX EBITDA of £615m compared to £589m a year ago, primarily reflecting: Favourable volume and mix Favourable operat
Slide 9: Cash Flow
CASH FLOW INVESTMENT FUNDED BY EBITDA AND WORKING CAPITAL JAGUAR LAND ROVER Quarter ended 30 September 6 months ended 30 September (£ millions, unless stated) 2016 2015 Change 2016 2015 Change EBITDA 615 589 26 1,287 1,410 (123) Working capital (incl. non cash accruals) 182 (75) 257 (485) (960) 475
Slide 10: Other Developments: Exciting New Products
OTHER DEVELOPMENTS EXCITING NEW PRODUCTS JAGUAR LAND ROVER All-new XFL All-new Discovery Major product reveal at LA auto show today! • Long wheelbase version of the XF for the China market • Lightweight aluminium construction 480kg lighter • First Jaguar produced at the China JV • CO2 emissions from
Slide 11: Looking Ahead
LOOKING AHEAD CONTINUING TO INVEST TO DRIVE PROFITABLE GROWTH JAGUAR LAND ROVER JLR’s strategy continues to be to invest in new products, technology and manufacturing capacity to grow profitably – in FY17 investment spending is likely to be somewhat lower than the prior indication of about £3.75b. J
Slide 12: Thank You
JAGUAR LAND ROVER Thank You Kenneth Gregor Jaguar Land Rover CFO, Jaguar Land Rover Abbey Road, Whitley, Coventry CV3 4LF C. Ramakrishnan Group CFO, Tata Motors Jaguarlandrover.com Bennett Birgbauer Treasurer, Jaguar Land Rover Jaguar Land Rover Investor Relations investor@jaguarlandrover.com Tata M
Slide 13: Additional Slides
JAGUAR LAND ROVER ADDITIONAL SLIDES
Slide 14: Income Statement
INCOME STATEMENT SOLID SALES VOLUMES AND REVENUE JAGUAR LAND ROVER Quarter ended 30 September 6 months ended 30 September (£ millions, unless stated) 2016 2015 Change 2016 2015 Change Revenues 5,953 4,831 1,122 11,414 9,833 1,581 Material and other cost of sales (3,527) (2,916) (611) (6,754) (5,822)
Slide 15: Q2 Wholesales of 124.2k Up 12%
Q2 WHOLESALES OF 124.2k UP 12% NORTH AMERICA, UK, CHINA AND EUROPE UP JAGUAR LAND ROVER Units in ‘000 North America UK China* Q2 FY17 Up 22% Up 5% Up 1% North America, UK, 23% 25% 31.1 28.9 27.5 14.3 14.4 China 25.4 Region, 18.7 Europe (ex. 12% 19.4 20.0 9.3 Russia), 11.9 23.0 24% Overseas, 12.4 8.1
Slide 16: Q2 Wholesales: Strong Sales of F-PACE, XF and Evoque
Q2 WHOLESALES OF 124.2k UP 12% STRONG SALES OF F-PACE, XF AND EVOQUE JAGUAR LAND ROVER Units in ‘000 Jaguar - Q2 FY17 vs Q2 FY16 Land Rover - Q2 FY17 vs Q2 FY16 Up 93% Down (8)% 89.5 82.3 13.6 Range Rover 12.7 Range Rover Sport 21.1 19.7 Range Rover Evoque* 41.9 17.3 2.6 Discovery 21.2 18.5 11.3 Dis
Slide 17: Record 6M Retail Sales of 275.2k Up 22%
RECORD 6M RETAIL SALES OF 275.2k UP 22% ALL REGIONS UP JAGUAR LAND ROVER Units in ‘000 North America UK China* 6M FY17 Up 28% Up 23% Up 33% North America, UK, 21% 20% 54.8 55.2 42.7 57.9 Europe (ex. 46.9 41.4 Russia), China 27.5 Region, 37.8 10.4 23% 35.1 33.9 40.2 20% 25.3 18.1 17.0 17.7 Overseas,
Slide 18: Record 6M Retail Sales by Model
RECORD 6M RETAIL SALES OF 275.2k UP 22% F-PACE, XE, EVOQUE, DISCOVERY AND DISCOVERY SPORT JAGUAR LAND ROVER Units in ‘000 Jaguar - 6M FY17 vs 6M FY16 Land Rover - 6M FY17 vs 6M FY16 Up 80% Up 9% 201.7 184.4 24.9 Range Rover 27.2 40.8 Range Rover Sport 40.3 25.7 Discovery 21.5 Range Rover Evoque* 73.
Slide 19: 6M Wholesales of 245.0k Up 10%
6M WHOLESALES OF 245.0k UP 10% NORTH AMERICA, UK AND EUROPE UP JAGUAR LAND ROVER Units in ‘000 North America UK China* 6M FY17 Up 28% Up 6% Down (9)% North UK, 21% America, 25% 60.8 51.6 29.9 China 48.7 27.2 Region, 47.5 11% 39.5 34.0 36.1 17.1 Europe (ex. 24.9 Russia), 40.5 Overseas, 26% 21.3 17% 1
Slide 20: 6M Wholesales by Model
6M WHOLESALES OF 245.0k UP 10% STRONG SALES OF F-PACE, XE, EVOQUE AND DISCOVERY JAGUAR LAND ROVER Units in ‘000 Jaguar - 6M FY17 vs 6M FY16 Land Rover - 6M FY17 vs 6M FY16 Up 78% Down (6)% 178.9 168.5 27.4 25.4 Range Rover Range Rover Sport 40.7 39.8 Discovery 21.7 76.5 22.8 Range Rover Evoque* 5.6
Slide 21: Financing Structure: Strong Liquidity
FINANCING STRUCTURE STRONG LIQUIDITY JAGUAR LAND ROVER As at 30 September As at 30 September (£ millions, unless stated) 2016 2015 Change Cash and cash equivalents 2,382 2,104 278 Financial deposits 1,455 856 599 Cash and financial deposits 3,837 2,960 877 Undrawn 5 years revolving credit facilities
Slide 22: Financing Structure: Debt and Liquidity
FINANCING STRUCTURE STRONG LIQUIDITY JAGUAR LAND ROVER £ million Total Balance Sheet Debt at 30 September 2016 £mn 7,000 16% Bonds 2,499 6,000 5,707 14% Short term borrowings 154 5,000 4,830 1,870 Finance lease obligations 9 Pre paid financing costs (17) 4,000 1,870 Total 2,645 3,000 2,000 3,837 2,9
Slide 23: Product and Other Investment
PRODUCT AND OTHER INVESTMENT CAPITAL EXPENDITURE TO GROW THE BUSINESS JAGUAR LAND ROVER Quarter ended 30 September 6 months ended 30 September (£ millions, unless stated) 2016 2015 Change 2016 2015 Change R&D expense Capitalised 371 306 65 693 621 72 Expensed 88 75 13 173 139 34 Total R&D expense 45
Slide 24: Foreign Exchange Impact on Profitability
FOREIGN EXCHANGE IMPACT ON PROFITABILITY JAGUAR LAND ROVER Quarter ended 30 September (£ millions, unless stated) 2016 2015 Change Operational exchange1 n/a n/a 251 Realized FX Hedges and other2 (274) (16) (258) Revaluation of Current Assets/Liabilities3 (58) (47) (11) Total FX impacting EBITDA n/a
Slide 25: Interim Report for the Three and Six Months Ended 30 September 2016
JAGUAR LAND ROVER Jaguar Land Rover Automotive plc Interim Report For the three month and six month period ended 30 September 2016 Company registered number: 06477691 Contents Management’s discussion and analysis of financial condition and results of operations Market environment Jaguar Land Rover v