Tata Motors Limited · NSE:TMCV
Tata Motors — Q2 FY16 Earnings Presentation
31 slides from Tata Motors's earnings presentation, Nov 9, 2015
Slide 1: Interim Report for the three and six month period ended 30 September 2015
JAGUAR LAND ROVER Jaguar Land Rover Automotive PLC Interim Report For the three and six month period ended 30 September 2015 Company registered number: 06477691 Contents Management’s discussion and analysis of financial condition and results of operations Market environment Jaguar Land Rover retail
Slide 2: Results for the Quarter Ended 30 September 2015
JAGUAR LAND ROVER JAGUAR LAND ROVER RESULTS FOR THE QUARTER ENDED 30 SEPTEMBER 2015 6 NOVEMBER 2015
Slide 3: 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 4: 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 5: Agenda
AGENDA JAGUAR LAND ROVER Financial performance for the quarter 5 Other developments 16 October 2015 retail volumes 18 Closing Q&A 21 -4-
Slide 6: Financial Performance Q2 FY16
JAGUAR LAND ROVER FINANCIAL PERFORMANCE Q2 FY16 -5-
Slide 7: Q2 FY16 Financial Results Reflects China Mix, FX Reval and Exceptional Item
Q2 FY16 FINANCIAL RESULTS REFLECTS CHINA MIX, FX REVAL AND EXCEPTIONAL ITEM JAGUAR LAND ROVER Retail volumes 110,200, down slightly 0.5%, with Jaguar up 15.3% and Land Rover down 3.9%. Revenue £4,831m, up slightly £23m. EBITDA £589m (12.2% margin) and PBT £88m before an exceptional charge of £245m f
Slide 8: Key Financial Metrics
KEY FINANCIAL METRICS JAGUAR LAND ROVER Quarter ended 30 September 6 months ended 30 September (£ millions, unless stated) 2015 2014 Change 2015 2014 Change Retail volumes (‘000 units)* 110.2 110.8 (0.6) 225.1 226.4 (1.3) Wholesale volumes (‘000 units)* 111.2 104.0 7.2 221.8 219.1 2.7 Revenues 4,831
Slide 9: Retail Volumes by Geography Q2 FY16
RETAIL VOLUMES BY GEOGRAPHY Q2 FY16 US, UK AND EUROPE UP; CHINA AND OVERSEAS DOWN JAGUAR LAND ROVER Units in ‘000 UK Up 9% 22.2 17.4 4.8 Q2 FY15 24.2 16.1 8.1 Q2 FY16 North America Up 23% 17.6 13.7 3.9 Q2 FY15 21.7 18.0 3.7 Q2 FY16 China Down (32)% 29.8 24.1 5.7 Q2 FY15 20.1 5.1* 12.5 2.6 Q2 FY16 Q2
Slide 10: Retail Volumes by Carline Q2 FY16
RETAIL VOLUMES BY CARLINE Q2 FY16 STRONG SALES OF NEW XE AND DISCOVERY SPORT JAGUAR LAND ROVER Units in ‘000 Jaguar - Q2 FY15 vs Q2 FY16 Up 15% F-TYPE XK XJ XF XE 0.9 - 19.6 3.2 4.4 11.2 Q2 FY15 0.1 22.6 2.9 2.7 7.6 9.3 Q2 FY16 Land Rover - Q2 FY15 vs Q2 FY16 Down (4)% 91.1 13.5 19.4 29.2 10.7 - 14.
Slide 11: Q2 FY16 Profits Year on Year
Q2 FY16 PROFITS YEAR ON YEAR JAGUAR LAND ROVER Revenue of £4,831m, up slightly £23m – higher wholesale volumes with strong sales in UK, US and Europe (particularly Discovery Sport and XE), offset by softer sales in China. EBITDA of £589m (12.2% margin), down £344m from Q2 FY15, comprising: Less favo
Slide 12: Tianjin Port Explosion
TIANJIN PORT EXPLOSION JAGUAR LAND ROVER Circa 5,800 cars with a consolidated inventory value of £245m stored at the port in August. Many of these vehicles were destroyed or damaged. One-time exceptional charge of £245m booked in Q2 FY16. Insurance and other potential recoveries may take some months
Slide 13: Diesel Technology
DIESEL TECHNOLOGY JAGUAR LAND ROVER Jaguar Land Rover does not use any emissions defeat devices or software. Diesel technology is a key enabler to fulfil CO2 and other emission targets worldwide. All our EU6 diesel engines, including our new Ingenium engines, use emissions after-treatment based on S
Slide 14: Income Statement
INCOME STATEMENT JAGUAR LAND ROVER Quarter ended 30 September 6 months ended 30 September (£ millions, unless stated) 2015 2014 Change 2015 2014 Change Revenues 4,831 4,808 23 9,833 10,161 (328) Material and other cost of sales (2,916) (2,904) (12) (5,822) (6,203) 381 Employee costs (539) (463) (76)
Slide 15: Consolidated Cash Flow
CONSOLIDATED CASH FLOW INVESTMENT LARGELY FUNDED BY EBITDA JAGUAR LAND ROVER Quarter ended 30 September 6 months ended 30 September (£ millions, unless stated) 2015 2014 Change 2015 2014 Change EBITDA 589 933 (344) 1,410 2,020 (610) Working capital changes and other (75) 327 (402) (960) (39) (921) T
Slide 16: Financing Structure Strong Liquidity
FINANCING STRUCTURE STRONG LIQUIDITY JAGUAR LAND ROVER Quarter ended 30 September (£ millions, unless stated) 2015 2014 Change Cash and cash equivalents 2,104 2,263 (159) Financial deposits 856 1,490 (634) Cash and financial deposits 2,960 3,753 (793) Undrawn 5 years revolving credit facilities 1,87
Slide 17: Recent and Upcoming Product Pipeline
RECENT AND UPCOMING PRODUCT PIPELINE EXCITING NEW PRODUCTS TO DRIVE GROWTH JAGUAR LAND ROVER Discovery Sport – launched Feb 15 XE – Launched May 15 (US in 2016) Evoque 16MY – Launched Aug 15 All new lightweight XF – Launched Sep 15 XJ 16MY – Launching Q3 FY16 F-PACE – Launching in 2016 -16 -
Slide 18: The New Jaguar F-PACE Unveiled at Frankfurt Motorshow
THE NEW JAGUAR F-PACE UNVEILED AT FRANKFURT MOTORSHOW - ON SALE IN 2016 JAGUAR LAND ROVER -17 -
Slide 19: Retail Volumes by Geography October Sales
RETAIL VOLUMES BY GEOGRAPHY OCTOBER SALES 41,553 units up 24% JAGUAR LAND ROVER Units in ‘000 UK Up 40% 5.7 4.5 1.2 Oct FY15 8.0 6.1 1.9 Oct FY16 North America Up 74% 5.2 4.1 1.1 Oct FY15 9.0 7.9 1.1 Oct FY16 China Up 9% 7.5 6.1 1.4 Oct FY15 8.1 1.9* 4.8 1.4 Oct FY16 Oct FY16 Overseas, 19% UK, 19% N
Slide 20: Retail Volumes by Carline October Sales
RETAIL VOLUMES BY CARLINE OCTOBER SALES 41,553 units up 24% JAGUAR LAND ROVER Units in ‘000 Jaguar - Oct FY15 vs Oct FY16 Up 39% F-TYPE XK XJ XF XE 0.2 - 5.4 0.9 1.2 3.1 Oct FY15 0.0 7.5 0.9 0.9 2.2 3.5 Oct FY16 Land Rover - Oct FY15 vs Oct FY16 Up 21% 28.1 4.4 5.3 9.4 3.1 0.0 4.2 1.7 Oct FY15 0.0 3
Slide 21: Looking Ahead New Products Expected to Drive Growth
LOOKING AHEAD NEW PRODUCTS EXPECTED TO DRIVE GROWTH JAGUAR LAND ROVER Jaguar Land Rover remains focused on: Building on the successful launches of the new Discovery Sport, the new Jaguar XE, all new Jaguar XF and 16 Model Year Evoque. Launching the 16 Model Year Jaguar XJ in Q3 FY16, the Evoque Conv
Slide 22: Q&A
JAGUAR LAND ROVER Q&A KENNETH GREGOR CFO, JAGUAR LAND ROVER - 21 -
Slide 23: 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 24: Additional Slides
JAGUAR LAND ROVER ADDITIONAL SLIDES - 23 -
Slide 25: 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) 2015 2014 Change 2015 2014 Change R&D expense Capitalised 306 274 32 621 547 74 Expensed 75 62 13 139 115 24 Total R&D expense 38
Slide 26: Wholesale Volumes by Geography Q2 FY16
WHOLESALE VOLUMES BY GEOGRAPHY Q2 FY16 STRONG SALES OF NEW XE AND DISCOVERY SPORT JAGUAR LAND ROVER Units in ‘000 Jaguar - Q2 FY15 vs Q2 FY16 Up 22% F-TYPE XK XJ XF XE 2.7 0.6 3.9 17.8 10.6 Q2 FY15 2.8 0.0 1.6 21.7 4.9 12.4 Q2 FY16 Land Rover - Q2 FY15 vs Q2 FY16 Up 4% 86.2 13.1 18.0 27.7 10.4 - 12.
Slide 27: Wholesale Volumes by Carline Q2 FY16
WHOLESALE VOLUMES BY CARLINE Q2 FY16 US, UK, EUROPE, OVERSEAS UP; CHINA DOWN JAGUAR LAND ROVER Units in ‘000 UK Up 30% 21.2 16.8 4.4 Q2 FY15 27.5 19.4 8.1 Q2 FY16 North America Up 65% 15.4 12.7 2.7 Q2 FY15 25.4 23.0 2.4 Q2 FY16 China Down (47)% 28.0 22.5 5.5 Q2 FY15 15.0 12.4 2.6 Q2 FY16 Q2 FY16 Ove
Slide 28: Retail Volumes by Carline - YTD
RETAIL VOLUMES BY CARLINE - YTD STRONG SALES OF NEW XE AND DISCOVERY SPORT JAGUAR LAND ROVER Units in ‘000 Jaguar - H1 FY15 vs H1 FY16 Up 4% F-TYPE XK XJ XF XE 1.8 39.2 6.5 8.8 22.1 H1 FY15 0.2 40.8 6.1 5.8 16.4 12.2 H1 FY16 Land Rover - H1 FY15 vs H1 FY16 Down (2)% 187.2 26.2 40.0 61.4 21.0 - 30.5
Slide 29: Retail Volumes by Geography - YTD
RETAIL VOLUMES BY GEOGRAPHY – YTD US, UK, EUROPE UP; CHINA, OVERSEAS DOWN JAGUAR LAND ROVER Units in ‘000 UK Up 14% 41.0 31.9 9.1 H1 FY15 46.9 33.9 13.0 H1 FY16 North America Up 18% 36.2 28.3 7.9 H1 FY15 42.7 35.1 7.6 H1 FY16 China Down (33)% 62.7 51.1 11.6 H1 FY15 42.1 10.4* 25.9 5.8 H1 FY16 H1 FY1
Slide 30: Wholesale Volumes by Carline - YTD
WHOLESALE VOLUMES BY CARLINE – YTD STRONG SALES OF NEW XE AND DISCOVERY SPORT JAGUAR LAND ROVER Units in ‘000 Jaguar - H1 FY15 vs H1 FY16 Up 15% F-TYPE XK XJ XF XE 1.8 37.4 6.5 8.3 20.8 H1 FY15 0.1 42.9 6.6 4.8 13.8 17.6 H1 FY16 Land Rover - H1 FY15 vs H1 FY16 Down (2)% 181.8 26.9 37.6 59.4 20.5 - 2
Slide 31: Wholesale Volumes by Geography - YTD
WHOLESALE VOLUMES BY GEOGRAPHY – YTD US, UK, EUROPE UP; CHINA, OVERSEAS DOWN JAGUAR LAND ROVER Units in ‘000 UK Up 23% 39.5 31.0 8.5 H1 FY15 48.7 34.0 14.7 H1 FY16 North America Up 42% 33.5 27.3 6.2 H1 FY15 47.5 40.5 7.0 H1 FY16 China Down (50)% 62.1 49.8 12.3 H1 FY15 30.9 25.8 5.2 H1 FY16 H1 FY16 O