Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Q4 FY2021 Earnings Presentation
55 slides from Tata Motors Passenger Vehicles's earnings presentation, May 2021
Slide 1: Tata Motors Group Results for the quarter and full year ended 31 March 2021
Tata Motors Group Results for the quarter and full year ended 31 st March 2021 1
Slide 2: Safe harbour statement
Safe harbour statement Statements in this presentation describing the objectives, projections, Accounting Standards estimates and expectations of Tata Motors Limited (the “Company”, • Financials (other than JLR) contained in the presentation are as per IndAS “Group” or “TML”) Jaguar Land Rover Autom
Slide 3: Product and other highlights – Jaguar Land Rover
Product and other highlights – Jaguar Land Rover Award winning and new products, new strategy and new funding Defender wins World Car Design of the Year 12 of 13 nameplates now electrified 21MY vehicles launched Reimagine strategy and Refocus transformation Delivered £2.5b FY21 savings (£6b lifetime
Slide 4: Product and other highlights – Tata Motors
Product and other highlights – Tata Motors Award winning and new products, new strategy and new funding Setting new benchmarks, successful BS VI transition Tata Safari – The Legend, Reborn Strong response, exciting variants Promoters equity funding Cost savings targets Received 98 patents in 2020, r
Slide 5: Q4: Revenue ₹88.6KCr, PBT(bei) ₹5.7KCr, Auto FCF ₹10.2KCr
Q4: Revenue ₹ 88.6KCr, PBT(bei) ₹ 5.7KCr, Auto FCF ₹ 10.2KCr Strong all-round performance despite pandemic impact; Full year EBITDA @ ₹ 30.4 KCr (12.2%, +370bps) Q 4 & F Y 2 1 | C o n s o l i d a t e d | IndAS, ₹ K C r Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Y-o-Y FY21 FY20 Y-o-Y Global wholesales (
Slide 6: EBIT 7.3%; Net Auto Debt ₹40.9KCr
EBIT 7.3%; Net Auto Debt ₹ 40.9KCr Deleverage plan on track; Net Auto Debt reduced by ₹ 7.3KCr vs FY20 Q 4 & F Y 2 1 | C o n s o l i d a t e d | IndAS, ₹ K C r Revenue 5.2 3.6 (0.7) 18.1 88.6 62.5 28.9% 5.7% 8.3% (1.1)% 41.8% growth Q4FY20 Volume & Mix Price Translation Others Q4FY21 Profitability (
Slide 7: Other items
Other items • One-time non-cash write down of £0.95b for previous investment spending that will now not be completed • Restructuring costs of £0.57b; To impact cash flow in FY22 but contained within the break-even position guided JLR • Lower D&A charge of c. £150m per annum and headcount savings of
Slide 8: Jaguar Land Rover Automotive PLC
JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL Chief Financial Officer Results for the quarter and full year ended 31 st March 2021 8
Slide 9: Strong finish to the year Q4 – PBT £534m, EBIT 7.5%
Strong finish to the year Q4 – PBT £534m*, EBIT 7.5% Q4 cash flow £729m to achieve £185m for full year Q 4 & F Y 2 1 | IFRS, £m Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Y-o-Y FY21 FY20 Y-o-Y Retails (K units) 74 114 129 123 110 12% 440 509 -14% Revenue (£m) 2,859 4,352 5,982 6,538 5,426 20% 19,731 22
Slide 10: Financial Performance highlights
Financial Performance highlights Strong quality of sales and cost control • Higher Q4 retails and revenue with China and North America sales up, other markets down Volume & • Full year sales and revenue lower due to COVID but significant growth in China Revenue • Average revenue per unit significant
Slide 11: Exceptional charges of £1.5b result in loss for the year
Exceptional charges of £1.5b result in loss for the year Including £952m of non-cash write-downs of prior investments F Y 2 1 | I F RS , £ m FY21 INCOME STATEMENT IMPACT • One-time non-cash write down primarily for previous (952) investment spending on certain planned products that will now not be c
Slide 12: Q4 Retail sales 123.5k, up 12% YoY with China up 127%
Q4 Retail sales 123.5k, up 12% YoY with China up 127% FY21 down 14% YoY due to Covid but China up 23% Q 4 & F Y 2 1 | Retail Units in 000’s UK N. AMERICA EUROPE CHINA OVERSEAS TOTAL 28.2 26.3 23.4 22.3 31.4 27.6 28.5 123.5 109.9 17.6 15.8 12.2 Q4 YoY YoY YoY YoY YoY (7)% 10% (5)% 127% YoY +12% (10)%
Slide 13: Land Rover families up in Q4 led by Defender
Land Rover families up in Q4 led by Defender Electrified sales now 62% of total, up 9 pts from Q3 Q 4 & F Y 2 1 | Retail Units in 000’s JLR POWERTRAIN MIX RANGE ROVER DISCOVERY DEFENDER JAGUAR 62% electrified 59.5 60.8 YoY 28.3 53.3% Q4 21.8 22.3 23.5 +2% 17.0 37.6% YoY YoY 7.3% 0.2 1.8% +2% (17)% Q
Slide 14: Defender orders continue ahead of expectations
Defender orders continue ahead of expectations More awards in Q4, including World Car Design of the Year Defender 110 Defender 110 & Defender 90 Order bank Retails 14
Slide 15: JLR market share growth in FY21 - supported by Defender introduction
JLR market share growth in FY21 - supported by Defender introduction Strong market share growth for more profitable models Q1 - Q4 FY21 | JLR retails % of JLR specific segment 1 sales (IHS) Range Rover Discovery JLR total 4.7% 6.0% 3.8% 4.0% 3.9% 5.2% 5.3% 2.4% 2.6% 2.1% 2.2% 4.4% Q1 FY21 Q2 FY21 Q3
Slide 16: Strong finish to the year – Q4 PBT £534m, EBIT 7.5%
Strong finish to the year – Q4 PBT £534m*, EBIT 7.5% Favourable volume, mix and FX, lower VME and other costs Q 4 | I F RS , £ m Volume 13 VME (10.2% to 4.4%) Warranty (3.8% FME & selling 60 388 Underlying Q4 FY21 to 3.4%) 54 Mix 193 Engineering, D&A, 4.9% China JV 19 Manufacturing 25 capitalisation
Slide 17: Return to full year profit - PBT £662m, EBIT 2.6%
Return to full year profit - PBT* £662m, EBIT 2.6% Favourable mix, FX and lower VME and other costs more than offset lower sales F Y 2 1 | IFRS, £m FME & selling 418 Volume (1,194) VME (7.6% to 4.9%) Warranty (3.7%) 165 Realised FX 171 Manufacturing 71 Engineering, D&A, Mix 391 FX reval 389 capitali
Slide 18: Positive Q4 free cash flow of £729m
Positive Q4 free cash flow of £729m Positive free cash flow for the year of £185m after £1,570m outflow in Q1 Q 4 & F Y 2 1 | IFRS, £m D&A 501 Payables 853 Inventory 75 565 (100) (589) Receivables (313) VAT & other (243) 999 319 729 534 Q4 FY21 PBT Non-cash Cash Cash profit Investment Working Free a
Slide 19: FY21 Investment £2.3b – 11.9% of revenue
FY21 Investment £2.3b – 11.9% of revenue Continue to prioritise investments in products and technologies Q 4 & F Y 2 1 | IFRS, £m 1,127 2,343 489 1,216 727 Capitalised Expensed Total Capital Total FY21 R&D R&D R&D Investment* Investment Q4 FY21 157 164 321 268 589 * Of which £1,050m relates to purch
Slide 20: Charge+ FY21 savings £2.5b -- achieving full year target
Charge+ FY21 savings £2.5b -- achieving full year target £6b lifetime Charge savings £0.3b delivered in Q4 FY21 to achieve £2.5b FY21 target £6b lifetime Charge savings Q1-Q3 FY21 savings £2.5b £2.1b £6.0b Q4 FY21 savings £0.1b £1.0b £2.9b 0.2b 0.8b £1.0b 0.4b Cost & Cost & Working Capital Investmen
Slide 21: Cash flow break-even reduced to c. 400k units
Cash flow break-even reduced to c. 400k units Transformation supported by Charge and Refocus Units 000’s | £m Sales growth, new models & capacity expansion 600 575 550 500 500 450 400 + 425 <400 Breakeven Wholesales FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 & Beyond Wholesales 471 509 535 54
Slide 22: JLR turnaround plan delivers
JLR turnaround plan delivers Charge+, China and Covid sales recovery driving improvement Free cash flow 1,469 China sales Start of Charge Covid impact and recovery recovery 729 562 463 (43) 105 (5) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 (415)
Slide 23: Business updates
JAGUAR LAND ROVER AUTOMOTIVE PLC Business updates
Slide 24: Compelling and desirable portfolio today
Compelling and desirable portfolio today 12 of 13 nameplates electrified: 1 BEV, 8 PHEVs & 11 MHEVs JAGUAR LAND ROVER I-Pace XF & XFL Range Rover Range Rover Sport Defender 90 F-Pace XE & XEL Range Rover Velar Range Rover Evoque Defender 110 E-Pace F-Type Discovery Discovery Sport Defender Hard Top
Slide 25: Reimagine strategy - Modern Luxury by Design: Electrification
Reimagine strategy - Modern Luxury by Design Electrification of the Jaguar and Land Rover brands The electrification of the Jaguar and Land Rover brands is at the heart of Reimagine, set against a canvas of true sustainability. Our accelerated path towards electrification through Reimagine will cont
Slide 26: Reimagine strategy - BEV-first architectures
Reimagine strategy - Modern Luxury by Design 3 BEV-first architectures, greater collaboration and right-sized footprint 3 BEV-FIRST ARCHITECTURES LEVERAGE COLLABORATIONS REDUCE CAPACITY BY 25% 2021/22 Global 2-shift capacity MLA FLEX Utilisation 2024 EMA NATIVE BEV 2025 JAGUAR PURE BEV 26
Slide 27: Reimagine strategy - Refocus transformation
Reimagine strategy - Modern Luxury by Design Refocus transformation to drive the transformation of the business TRANSFORMATION OFFICE 1 2 3 4 5 6 QUALITY PROGRAMME DELIVERED END-TO-END CUSTOMER & CHINA DELIVERY COST PER CAR SUPPLY CHAIN MARKET Drives transformation activities & PERFORMANCE PERFORMAN
Slide 28: Reimagine strategy - 100+ Refocus initiatives launched
Reimagine strategy - Modern Luxury by Design 100+ Refocus initiatives launched across all pillars, some examples 2 7 5 8 9 PROGRAMME DELIVERY & CUSTOMER & MARKET RESPONSIBLE SPEND PERFORMANCE PERFORMANCE Agile vehicle delivery Data-driven sales Fixed cost balancing £100M+ pa (2,000+ FTEs) in labour
Slide 29: Managing Covid and ongoing supply frictions
Managing Covid and ongoing supply frictions Semiconductor supply shortages expected to improve in second half FY22 COVID BATTERIES SEMICONDUCTORS Global vaccine rollout gathers pace, Increased electrification across all Global shortage of semiconductors but some lockdowns remain in place major auto
Slide 30: Outlook
Outlook Q1 to be impacted by semiconductor shortage; still targeting breakeven full year cashflow FINANCIAL TARGETS KEY PRIORITIES FY22 FY24 FY26 Execute Reimagine strategy REVENUE >FY21 INCREASING >£30b Execute Refocus transformation programme and continue to drive cost efficiency EBIT MARGIN ≥4% ≥
Slide 31: Tata Motors (Standalone)
Tata Motors (Standalone) Guenter Butschek & PB Balaji 31
Slide 32: Q4 Revenue ₹20.0KCr; EBIT 3%, PBT(bei) ₹145Cr, FCF ₹2.9KCr
Q4 Revenue ₹20.0 KCr; EBIT 3%, PBT(bei) ₹ 145Cr , FCF ₹ 2.9KCr Strong improvement in full year performance despite the pandemic; EBITDA up 380bps Q 4 & F Y 2 1 | T M L S t a n d a l o n e | IndAS, ₹ K C r Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Y-o-Y FY21 FY20 Y-o-Y Wholesales (K units) 25.3 110.0 1
Slide 33: Performance highlights
Performance highlights Sequential improvement in performance; Strong cash flows continue Q4 FY 21 • Revenue +106%; Sequential recovery continues Volume & • CV (+90%) : Recovery led by M&HCV and ILCV with higher demand from infrastructure, mining and e-commerce. Revenue • PV (+144%) : Strong sales mo
Slide 34: EBIT positive at 3%; PBT (bei) ₹145 Cr
EBIT positive at 3%; PBT (bei) ₹ 145 Cr Better Volumes, improved product mix, and cost savings offset partially by commodity inflation Q 4 | IndAS, ₹ ( I N R ) ₹ Cr. IndAS FME& Others: ₹179 Cr Forex ₹ 199 Cr D&A and PDE : ₹(39)Cr Others ₹ 485 Cr EBIT % (16.0)% 13.7% 3.6% (2.1)%. 0.8% 3.0% 3.0% For a
Slide 35: Q4 FY21 Free Cash Flows ₹2.9 KCr
Q4 FY21 Free Cash Flows ₹2.9 KCr Positive cash profits, investment spend controls & favourable working capital. FY21 FCF at ₹2.7KCr Q 4 & F Y 2 1 | IndAS, ₹ ( I N R ) Payables, acceptances ₹ 2,331 Cr Trade receivables ₹ 459 Cr Inventories ₹ 167 Cr Others ₹ 503 Cr Q4 FY21 FY21 (3,705) 5,665 (63) 1,89
Slide 36: Investment Spending ₹2.6 KCr
Investment Spending ₹ 2.6 KCr Capex managed prudently while catering to a resurgent demand Q 4 & F Y 2 1 | IndAS, ₹ ( I N R ) FY21 Q4 230 356 586 291 877 FY21 36
Slide 37: Cash savings of over ₹9.3KCr
Cash savings of over ₹ 9.3KCr Targets of ₹ 6KCr surpassed ₹ Cr Target Status Comments FY21 FY21 Capex prudently managed while catering to a resurgent Investment 3,000 2,600 demand Working Capital 1,500 4,500 Strong working capital savings Employee costs, Marketing, Manufacturing, Discretionary and C
Slide 38: Commercial Vehicles
Commercial Vehicles Girish Wagh & PB Balaji 38
Slide 39: Market shares at 42.4%
Market shares at 42.4% M&HCV improves to 58.1%; ILCV, SCV & Buses improves progressively during the year; Industry salience tilted to SCVs Commercial Vehicles 45.1% 45.1% 42.4% 43.0% 42.4% 38.9% 36.7% 29.6% FY21 FY18 FY19 FY20 FY21 3M 6M 9M FY MHCV ILCV SCV Buses 71.8% 47.2% 45.0% 44.0% 45.9% 45.7%
Slide 40: Volumes 111.6K (+58%), Revenue ₹13.3KCr (+90%)
Volumes 111.6K (+58%), Revenue ₹ 13.3KCr (+90%) EBITDA 9.1% (+950bps) – Improved mix and cost savings offset by commodity inflation; EBIT breakeven reduced by 25% Q 4 & F Y 2 1 | IndAS, ₹ K C r Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Y-o-Y FY21 FY20 Y-o-Y Wholesales (000s) 10.7 55.0 84.6 111.6 70.6
Slide 41: Business Agility Plan Activated: 2nd Wave
Business Agility Plan Activated : 2nd Wave Dynamically managing evolving challenges, guided by Business Agility Plan (BAP) Demand Fulfilment Cost Reduction & Cash Conservation Demand Generation • Supply allocation in prioritized less • Encouraging work from home wherever • Expediting cost reduction
Slide 42: Passenger Vehicles
Passenger Vehicles Shailesh Chandra & PB Balaji 42
Slide 43: PV business posted highest growth in 8 years
PV business posted highest growth in 8 years “New Forever” Range and focused initiatives across value chain yielding results Market shares POWERTRAIN MIX 8.2% EV, 0.2% EV, 1% EV, 2% 6.3% Diesel, 18% 5.7% Diesel, 38% Diesel, 28% 4.8% Petrol, 71% Petrol, 80% Petrol, 62% FY19 FY20 FY21 FY18 FY19 FY20 F
Slide 44: Volumes 84.2K (+160%), Revenue ₹6.6KCr (+144%)
Volumes 84.2K (+160%), Revenue ₹ 6.6KCr (+144%) EBITDA 4.9% (+2280bps) – Contribution margins, mix and operating leverage offset by commodity inflation Q 4 & F Y 2 1 | IndAS, ₹ K C r Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Y-o-Y FY21 FY20 Y-o-Y Wholesales (000s) 14.6 55.0 68.9 84.2 32.3 160.4% 222.6
Slide 45: PV: Business update
PV: Business update COVID second wave to impact demand and supply negatively; Actions in place to navigate the turbulence Demand generation Demand fulfilment Profitability • Demand impacted by lockdowns and • Supply impacted by rising COVID • Profitability impacted by lower Concern strict restrictio
Slide 46: Tata Motors Finance: AUM ₹42.8KCr, PBT ₹266Cr & ROE 9.2%
Tata Motors Finance: AUM ₹ 42.8KCr, PBT ₹266Cr & ROE 9.2% Strong close to the year; Expect near term stress in Q1 FY22 due to Covid-19 Wave 2 Q 4 & F Y 2 1 | T a t a M o t o r s F i n a n c e | IndAS, ₹ ( I N R ) • Disbursals down Y-o-Y by 12% to ₹13,258 Cr with vehicle sales in first half remaining
Slide 47: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth and deleverage the business Outlook • Demand situation to continue to improve over the year. • Supply bottlenecks / disruptions and commodity inflation are the key concerns • Q1 FY22: To be adversely impacted by lock
Slide 48: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter and full year ended 31 st March 2021
Slide 49: Tata Motors Group Financials – Consolidated
Tata Motors Group Financials Consolidated Quarter ended 31 March Year ended 31 March Q4’FY21 Q4’FY20 Y-o-Y change FY’21 FY’20 Y-o-Y change Global Wholesales* 334,214 231,325 44.5% 902,648 1,006,173 (10.3)% Revenue 88,628 62,493 41.8% 249,795 261,068 (4.3)% EBITDA 12,737 3,581 255.7% 30,397 22,311 36
Slide 50: Tata Motors Group Financials – Standalone
Tata Motors Group Financials Standalone (JO) Quarter ended 31 March Year ended 31 March Q4 FY’21 Q4 FY’20 Y-o-Y change FY’21 FY’20 Y-o-Y change Total Volumes : CV+ PV + Exports (Units) 195,859 102,968 90.2% 484,591 475,207 2.0% CV (Units) 103,128 63,998 61.1% 241,668 312,267 (22.6)% PV (Units) 83,84
Slide 51: Tata Motors Group Financials – Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover IFRS, £Mn Q4’FY21 Q4’FY20 Y-o-Y change FY’21 FY’20 Y-o-Y change Revenue 6,538 5,426 20.5% 19,731 22,984 (14.2)% Material and other costs of sales (4,065) (3,542) (14.8)% (12,335) (14,684) 16.0% Employee cost (619) (626) 1.1% (2,141) (2,568) 16.6% Other
Slide 52: Debt profile
Debt profile Strong liquidity; debt maturities well spread out JLR IndAS TML (S) Total IFRS, £m Debt maturity profile Total ₹ Crores Debt maturity profile 22,439 6,697 690 £ 1.3 b of the undrawn RCF 519 2,543 extended to Mar 2024 1,838 RCF 19,206 RCF 1,310 RCF 625 104 4,342 1,000 270 679 581 2,543 1
Slide 53: China JV
China JV Sales and revenue up; return to positive EBITDA in Q4 and FY21 Q 4 & F Y 2 1 | I F RS , £ m (Presented on 100% basis) Q4 FY21 Q4 FY20 Change FY21 FY20 Change Retail volumes ('000 units) 15.9 5.9 10.0 64.3 50.0 14.3 Wholesale volumes ('000 units) 13.8 6.3 7.5 65.3 49.5 15.8 Revenues 383 172
Slide 54: FX impact - Consolidated & Standalone (JO)
Tata Motors Group FX impact-Consolidated & Standalone (JO) Quarter ended 31 Mar Year ended 31 Mar Consolidated Q4 FY21 Q4 FY20 FY21 FY20 Realised Foreign Exchange (206) 122 (732) (101) Total FX impacting EBITDA & EBIT : gain/(loss) (206) 122 (732) (101) Unrealised Foreign Exchange 835 (1,804) 2,464
Slide 55: FX and commodities +£388m YoY for Q4, +775 YoY for FY21
FX and commodities +£388m YoY for Q4, +775 YoY for FY21 Favourable revaluation Q 4 & F Y 2 1 | I F RS , £ m Q4 FY21 YoY CHANGE FY21 YoY CHANGE Operational exchange 1 n/a (105) n/a (272) Realised FX 2 14 125 (101) 443 Total FX impacting EBITDA & EBIT n/a 20 n/a 171 Revaluation of CA/CL and other 3 56