Tata Motors Limited · NSE:TMCV
Tata Motors — Q3 FY2023 Earnings Presentation
52 slides from Tata Motors's earnings presentation, Jan 25, 2023
Slide 1: Exchange filing cover letter for investor presentation
BSE Limited Listing Compliance Department First Floor, New Trading Ring National Stock Exchange of India Ltd. Rotunda Building, P J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Mumbai 400 001 Bandra(E), Mumbai 400 051 January 25, 2023 Sc no – 17217 Dear Sir/Madam, Ref: ISIN: INE
Slide 2: Tata Motors Group Results for quarter ended 31st December 2022
Tata Motors Group Results for quarter ended 31 st December 2022
Slide 3: Safe harbour statement
Safe harbour statement Other Details • Presentation format : The results provided represent the details on Statements in this presentation describing the objectives, projections, consolidated segment level. The operating segment comprise of Automotive estimates and expectations of Tata Motors Limite
Slide 4: Product and other highlights
Product and other highlights Acquisition of Ford Sanand Facility complete Ongoing chip & other supply constraints gradually improving at JLR Exciting product range unveiled at Auto Expo 2023 - Drawdown notice for Tranche 2 of ₹3,750 Cr. JLR Order book grows to new record of 215,000 Moving India with
Slide 5: Q3: Revenue ₹88.5KCr, EBITDA 11.1%, PBT(bei) ₹3.2KCr
Q3: Revenue ₹ 88.5KCr, EBITDA 11.1%, PBT(bei) ₹ 3.2KCr Strong performance across all auto businesses drives margin and FCF improvement Q 3 F Y 2 3 | C o n s o l i d a t e d | IndAS, ₹ K C r PBT (bei) Global Wholesales Revenue ₹KCr (K units) ₹KCr YoY +12.5 % YoY 22.5 % 88.5 3.2 335.8 321.7 79.6 286.0
Slide 6: EBIT 4.4%; Net Auto Debt ₹57.5 KCr
EBIT 4.4%; Net Auto Debt ₹ 57.5 KCr EBIT improves YoY and QoQ. Q 3 F Y 2 3 | C o n s o l i d a t e d | IndAS Revenue ₹ KCr 7.0 0.1 11.5 (2.3) 88.5 72.2 15.9% 9.7% (3.2)% 0.1% 22.5% increase Q3FY22 Volume & Mix Price Translation Others Q3FY23 Profitability (EBIT) ₹ C r Net Auto Debt ₹ KCr Entities ₹
Slide 7: Jaguar Land Rover Automotive plc
JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL R I C H A R D M O LY N E U X Interim Chief Executive Officer Acting Chief Financial Officer Results for the quarter ended 31 December 2022 6
Slide 8: Q3 Revenue £6b, EBITDA 11.9%, PBT (bei) £265m
Q3 Revenue £6b, EBITDA 11.9%, PBT (bei) £265m All round improvement in performance as volumes pick up Q 3 F Y 2 3 | J a g u a r L a n d R o v e r | I F RS , £ m Retails Revenue £m PBT (bei) (K units) £m YoY + 28 % YoY 5.9% 6,041 265 5,260 4,716 80.1 88.1 84.8 -9 -173 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22
Slide 9: Q3 FY23 Performance highlights
Q3 FY23 Performance highlights • Wholesales of 80k, up 6% QoQ and 15% YoY, the highest quarterly volume since Q1 FY22 • Retails up 6% YoY but down QoQ by 4%, reflecting timing between retails and wholesales Volume & Revenue • New Range Rover & Range Rover Sport production continues to ramp up with 2
Slide 10: Wholesales and retails by brand
Q3 wholesales of 80k, up 6% QoQ, 15% YoY - highest since Q1 FY22 Q3 retails of 85k, down 4% QoQ and up 6% from Q3 FY22 Q 3 F Y 2 3 | B r a n d s | U n its in 0 0 0 ’s TOTAL 39.9 40.3 40.7 19.9 RETAILS* 16.9 17.3 12.2 13.6 13.6 14.4 14.5 9.7 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 FY22 FY23 FY23
Slide 11: Wholesales and retails by region
Q3 wholesales in N. America, UK & overseas improved Q3 retails in N. America increased, China impacted by COVID Q 3 F Y 2 3 | R e g i o n s | U n its in 0 0 0 ’s JLR POWERTRAIN UK N. AMERICA EUROPE CHINA OVERSEAS MIX(RETAILS) 23.6 23.7 25.5 21.7 18.8 17.7 15.9 17.7 15.0 RETAILS* 15.0 10.9 12.4 10.8
Slide 12: Improved profitability YoY – stronger volume, mix, pricing and FX
Improved profitability YoY – stronger volume, mix, pricing and FX Partially offset by inflation, planned marketing and product development costs Q 3 F Y 2 3 | I F RS , £ m SG&A incl. Volumes 187 Pricing 165 Material (85) Operational (343) fixed mkting 259 cost FX VME Engineering Mix 89 Warranty 70 (
Slide 13: Positive free cashflow £490m in Q3
Positive free cashflow £490m in Q3 Free cashflow includes working capital rewind of £306m Q3 FY23 | IFRS, £m Free cashflow excluding Payables 417 D&A 494 working capital £184m Receivables (171) Inventory (76) Other 136 (32) Q1 FY22 to Q3 FY23: £(1,770)m 573 (622) 806 306 490 265 PBT* Non-cash Cash C
Slide 14: Cash flow breakeven remains around 280k wholesales
Cash flow breakeven remains around 280k wholesales in Q3 U n i t s 0 0 0 ’s 660 540 400 Annualised cash flow 330 320 c. 300 breakeven 280 280 wholesales Note: FY22 and prior years include working capital 13
Slide 15: Total Q3 investment £622m
Total Q3 investment £622m Engineering capitalisation rate 48%, increasing as future products reach capitalisation triggers Q3 FY23 | IFRS, £m 176 622 234 446 212 Capitalised Expensed Total Capital Total Engineering Engineering Engineering Investment Investment Q3 FY22 106 211 317 195 512 14
Slide 16: Jaguar Land Rover Business Update
JAGUAR LAND ROVER - —_—___ BUSINESS UPDATE
Slide 17: Remain committed to Reimagine electrification strategy
Remain committed to Reimagine electrification strategy Extensive electrification across core models over the next 3 years and new architecture roll out New EMA 1st Range architecture 100% sales zero BEV available on tailpipe emission Net-zero carbon Rover BEV introduced all models vehicles emissions
Slide 18: Semiconductor supply improved in Q3FY23
Semiconductor supply improved in Q3FY23 Expect improvement to continue in Q4FY23 and beyond Units 000’s WHOLESALE VOLUME SUMMARY 90 • Agreements in place with critical suppliers across high 85 risk chips – these provide greater visibility over near 80 term supply 75 • Expect trend of gradual improve
Slide 19: New Range Rover & Range Rover Sport production increasing
New Range Rover & Range Rover Sport production increasing • AVERAGE WEEKLY RR/RRS PRODUCTION 2,300 1,600 1,100 Q1 Q2 Q3 Q4 Note: Approximately 46 weeks of production in each fiscal year due to planned shut down periods 18
Slide 20: Strong demand continues – record order book of 215k units
Strong demand continues – record order book of 215k units New Range Rover, New Range Rover Sport & Defender account for 74% of order book Q3 FY23 | U n its in 0 0 0 ’ s CUSTOMER ORDER BOOK WALK QoQ 215 205 200 Other 168 Other 155 Other 95 (85) 125 Defender Other Defender 110 Other Defender 74% of to
Slide 21: JLR and retailer inventory moving towards normal levels
JLR and retailer inventory are moving towards more normal levels Units 000’s 80 70 60 50 40 30 20 10 0 JLR Inventory Retailer Inventory JLR inventory target range* Retailer inventory target range* * Target inventory is based on number of days cover and so fluctuates over the year 20
Slide 22: Significant inflation headwinds offset by Refocus
Significant inflation headwinds offset by Refocus Revenue and cost optimisation actions being taken to mitigate inflation FY23 SOURCES OF INFLATION REFOCUS SAVINGS IN FY23 MARKET PERFORMANCE • £420m value contribution • Primarily re-pricing and optimisation of available semi- conductor using data an
Slide 23: China expected to recover quickly from Covid-19 in Q4
China expected to recover quickly from Covid-19 in Q4 Q3 performance impacted by lockdowns and staff absence Q3 IMPACT Q4 OUTLOOK • Q3 impacted by lockdowns followed by high rates of • All of our retailers are generally open in January and sickness across the country further lockdowns are presently
Slide 24: Full year FY23 outlook remains unchanged
Full year FY23 outlook remains unchanged With performance expected to continue to improve in Q4 F Y 2 3 ACTUALS F Y 2 3 OUTLOOK YTD Dec Q4 FY23 WHOLESALES* 227k >80k c. 310k REVENUE £15.7b > £5b c. £20b EBIT MARGIN 0.5% Positive Positive INVESTMENT c.£1.6b c.£0.7b c. £2.3b FREE CASH FLOW £(294)m c £
Slide 25: Tata Commercial Vehicles
Tata Commercial Vehicles Girish Wagh & PB Balaji (Includes Tata CV India, Tata Cummins JO results and Tata CV International)
Slide 26: Registration (Vahan) market share starts to improve
Registration (Vahan) market share starts to improve Outcome of shifting to “Demand Pull” business model and focus on profitable growth from Sep’22 onwards Tata Commercial Vehicles | Domestic market share* Commercial Vehicles Vahan Ref Tonnage 44.7% HGV+HMV > = 13Ts 43.2% 42.1% MGV 7.5 to 12 Ts 41.3%
Slide 27: Tata Commercial Vehicles - Volumes
Tata Commercial Vehicles - Volumes Marginally lower wholesales reflecting weaker exports; retails are steady Tata Commercial Vehicles |India Business Volumes Wholesales (incl. exports ) (K units) Retails (domestic) Exports YoY (5.7)% (K units) YoY 5.0% 100.8 100.4 95.0 94.9 97.7 9.6 93.1 6.8 4.2 91.
Slide 28: Q3: Revenue ₹16.9KCr, EBITDA 8.4%, PBT(bei) ₹0.9 KCr
Q3: Revenue ₹ 16.9KCr, EBITDA 8.4%, PBT(bei) ₹ 0.9 KCr Margin recovery aided by better market operating price and stable commodity prices Q 3 F Y 2 3 | T a t a C o m m e r c i a l V e h i c l e s | IndAS, ₹ K C r Wholesales Revenue PBT (bei) YoY (6.4) % ₹KCr YoY + 22.5 % (K units) ₹KCr 0.9 103.7 103
Slide 29: EBIT at 5.9% (+650) bps; PBT (bei) ₹0.9 KCr
EBIT at 5.9% (+650) bps; PBT (bei) ₹ 0.9 K Cr Margins improve on richer mix, higher realisations and softening commodity prices Q 3 F Y 2 3 | T a t a C o m m e r c i a l V e h i c l e s | IndAS, ₹ Cr ₹ Cr. IndAS FME ₹(26) Cr Employee cost ₹ (80) Cr D&A and PDE : ₹40Cr Realized/unrealized FX ₹ 28 Cr
Slide 30: Tata Commercial Vehicles industry, business highlights and focus areas
Tata Commercial Vehicles Industry volumes continued to grow though sequential growth moderated Industry Business highlights Focus areas • Industry continued its upward trajectory, • Strong demand led by M&HCVs (+50% vs • Continue to focus on retail, VAHAN grew by 16% YoY this quarter. Retails were Q
Slide 31: Tata Commercial Vehicles – New business update
Tata Commercial Vehicles – New business update Electric Mobility TML Smart City Mobility Solutions Ltd. Digital • Flagged off Ace EV deliveries after • Signed definitive agreement with Delhi • Consistently grew Fleet edge, connected truck completing in-market trials with leading Transport Corporatio
Slide 32: Comprehensive range showcased at Auto Expo 2023
Comprehensive range showcased at Auto Expo 2023 Greener and zero emission mobility solutions across cargo and passenger segments, powered by natural gas, electric and hydrogen A. Unique Hydrogen propulsion concepts: 1. PRIMA H.55S- India's first Hydrogen ICE powered concept truck 2. PRIMA E.55S- Ind
Slide 33: Tata Passenger Vehicles
Tata Passenger Vehicles Shailesh Chandra & PB Balaji (Includes Tata PV, EV India, FIAPL JO results and International business(PV+EV)) 32
Slide 34: Tata Passenger Vehicles – Sustained volume growth
Tata Passenger Vehicles – Sustained volume growth Tata Passenger Vehicles |India business Volumes Wholesales (incl. exports ) Retails (domestic) (K units) (K units) Exports YoY 33.0% YoY 27.2% 142.8 133.7 138.9 132.3 0.5 1.0 109.1 99.5 0.6 142.3 131.3 98.9 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3
Slide 35: EV Surpassed milestone of 50K vehicle sales
EV Surpassed milestone of 50K vehicle sales Tata Passenger Electric Vehicles | Domestic Volume & Market Share Network Charging infra 32,426 35,0 00 100 % 87% 90% 250 30,0 00 4,297 71% 85% 80% 25,0 00 70% 19,105 60% 165 20,0 00 50% 143 15,0 00 2,000 97 40% 10,0 00 30% 75 20% 51 5,00 0 4,218 450 10% -
Slide 36: Q3: Revenue ₹11.7KCr, EBITDA 6.9%, PBT(bei) positive
Q3: Revenue ₹ 11.7KCr, EBITDA 6.9%, PBT(bei) positive Revenue growth 37%; margins see steady improvement Q 3 F Y 2 3 | T a t a P a s s e n g e r V e h i c l e s | IndAS, ₹ K C r Wholesales Revenue PBT (bei) YoY + 33.0 % ₹KCr YoY + 37.4 % (K units) ₹KCr 12.5 0.3 142.8 11.7 132.3 0.2 99.5 8.5 -0.3 Q3
Slide 37: EBIT at 1.5% (+510) bps; PBT (bei) positive
EBIT at 1.5% (+510) bps; PBT (bei) positive Margins improve on better volumes, mix & realisations ₹ Cr. IndAS Q 3 F Y 2 3 | T a t a P a s s e n g e r V e h i c l e s | IndAS, ₹ Cr Interest, investment income, others ₹131 Cr Realized FX, unrealized FX and comm ₹ 30 Cr PV related one offs ₹ 269 Cr* FM
Slide 38: Business update
Business update Highest ever retail in Q3; Actions in place across value chain to enable growth in Q4 Tata Passenger and Electric Vehicles Key Highlights Bright spots Challenges • Industry wholesale grew by 23% in Q3 • Wholesale to improve in Q4 owing to • Demand to normalise owing to release Indust
Slide 39: Exciting new offerings at Auto expo
Exciting new offerings at Auto expo EV portfolio ICE Portfolio New – Forever Harrier and Safari #DARK Tiago EV Harrier EV Altroz Punch iCNG with twin cylinder technology Sierra EV Avinya Curvv 1.2 and 1.5L TGDi engine
Slide 40: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL. 39
Slide 41: Q3 FY23 Free Cash Flows ~₹0.8 KCr
Q3 FY23 Free Cash Flows ~₹ 0.8 KCr Strong cash profits and favourable working capital driving positive cash flows Q3FY23 | Tata Motors Domestic Business |IndAS, ₹ Cr* Payables, acceptances ₹ 174 Cr Trade receivables ₹ 409 Cr Inventories ₹ 76 Cr Others ₹ 24 Cr Q3 FY23 YTD FY23 683 4,469 (334) 4,818 (
Slide 42: Investment Spending in Q3FY23 ₹1.6 KCr, YTDFY23 ₹3.8 KCr
Investment Spending in Q3FY23 ₹ 1.6 KCr, YTDFY23 ₹ 3.8 KCr FY23 investment spending to be ~ ₹ 6000 Cr Q3FY23 | Tata Motors Domestic Business* |IndAS, ₹ Cr Q3FY23 | Domestic CV Business |IndAS, ₹ Cr YTD FY23 612 593 1,205 495 1,700 Q3FY23 |Domestic PV+EV Business |IndAS, ₹ Cr YTD FY23 694 688 1,381 7
Slide 43: TMF: Pandemic affected restructured book facing slower recovery
TMF: Pandemic affected restructured book facing slower recovery Normalization of book by Mar-23 with concerted collection efforts 9 M F Y 2 3 | T a t a M o t o r s F i n a n c e | IndAS, ₹ ( C r I N R ) • GNPA increase in Q3 FY23 due to slippages in the restructured book IndAS 9M FY22 9M FY23 and a
Slide 44: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth whilst deleveraging the business Outlook • We remain cautiously optimistic on the demand situation despite global uncertainties. • Chip supply to improve further; volumes to ramp up steadily • Stable commodity prices
Slide 45: Q&A session Thank you
Q&A session Thank you Please submit your questions in the Q&A textbox Please mention your name and name of the organization you represent along with the questions 44
Slide 46: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended 31 st December 2022 45
Slide 47: Q3 FY23: Tata Motors Group Financials
Q3 FY23: Tata Motors Group Financials Consolidated Quarter ended December 31, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 58,863 16,886 11,671 1,069 88,489 Grant income / incentives 463 67 144 1 675 Expenses : Cost of materials
Slide 48: Q3 FY22: Tata Motors Group Financials
Q3 FY22: Tata Motors Group Financials Consolidated Quarter ended December 31, 2021 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 47,915 13,786 8,493 2,036 72,229 Grant income / incentives 322 45 136 3 506 Expenses : Cost of materials c
Slide 49: Tata Motors Group Financials: Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover Q 3 F Y 2 3 & Y T D F Y 2 3 | I F RS , £ m YTD FY22 v FY23 YTD YTD Q3 v Q3 YoY Q2 v Q3 QoQ Q3 FY22 Q2 FY23 Q3 FY23 YoY FY22 FY23 Change Change Change Revenues 4,716 5,260 6,041 13,553 15,707 1,325 781 2,154 Material and other cost of sales (2,783) (3,21
Slide 50: Favourable operational FX offset partially by hedging
Favourable operational FX offset partially by hedging Total FX £173m favourable after other FX revaluation Q 3 F Y 2 3 | I F R S , £m 5 (230) 259 153 168 173 29 (14) Operational Realised FX hedges FX Impact on EBIT FX revaluation of Other FX FX impact on PBT Unrealised FX, Commodity Exchange (1) net
Slide 51: Debt profile
Debt profile Strong liquidity; debt maturities well spread out JLR IndAS Tata Domestic Business* Total Total ₹ Crores IFRS, £m Debt maturity profile Debt maturity profile 17,794 7,686 Extension of RMB 874 5b China loan RCF extended on 749 facility signed in an unsecured 2,639 January 2023. basis thr
Slide 52: China JV continues to deliver improved financial performance
China JV continues to deliver improved financial performance Q 3 F Y 2 3 | I F RS , £ m (Presented on 100% basis) Q1 Q2 Q3 Q3 v Q3 YoY Q2 v Q3 FY20 FY21 FY22 FY23 FY23 FY23 Change QoQ Change Retail volumes ('000 units) 50.0 64.3 54.0 11.0 15.2 12.0 (1.7) (3.2) Wholesale volumes ('000 units) 49.5 65.