Tata Motors Limited · NSE:TMCV
Tata Motors — FY2016 Earnings Presentation
28 slides from Tata Motors's earnings presentation, Jun 3, 2016
Slide 1: Results for the Year and Quarter Ended 31 March 2016
JAGUAR LAND ROVER JAGUAR LAND ROVER RESULTS FOR THE YEAR AND QUARTER ENDED 31 MARCH 2016 30th MAY 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: Agenda
JAGUAR LAND ROVER AGENDA Financial performance for the quarter 5 Other developments 15 Closing Q&A 18 - 4 -
Slide 5: Financial Performance Fiscal Year 2016 and Quarter
JAGUAR LAND ROVER FINANCIAL PERFORMANCE FISCAL YEAR 2016 AND QUARTER 4 - 5 -
Slide 6: FY16 Financial Results: Solid Year with Record Sales After Strong Q4
FY16 FINANCIAL RESULTS SOLID YEAR WITH RECORD SALES AFTER STRONG Q4 JAGUAR LAND ROVER Record retail sales of 521.6k, up 12.9% year on year, and Q4 sales of 158.8k, up 27.8% Record revenue of £22.21b, up from £21.87b in FY15, and Q4 revenue of £6.59b, up from £5.83b FY16 EBITDA before one-time Q4 res
Slide 7: Key Financial Metrics
KEY FINANCIAL METRICS SOLID YEAR WITH RECORD SALES AFTER A STRONG Q4 JAGUAR LAND ROVER Quarter ended 31 March 12 months ended 31 March (£ millions, unless stated) 2016 2015 Change 2016 2015 Change Retail volumes (‘000 units) 158.8 124.3 34.5 521.6 462.2 59.4 Wholesale volumes (‘000 units)* 149.9 125
Slide 8: Record FY16 Retail Sales of 521.6k, Up 13%
RECORD FY16 RETAIL SALES OF 521.6K UP 13% STRONG GROWTH IN EUROPE, NORTH AMERICA AND UK JAGUAR LAND ROVER Units in ‘000 North America Up 27% 78.4 61.6 16.8 FY15 99.6 83.1 16.5 FY16 UK Up 24% 86.8 68.9 17.9 FY15 107.4 79.7 27.6 FY16 China Down (16)% 1.1 116.0 94.4 20.4 FY15 96.9 31.8 49.6 15.5 FY16 F
Slide 9: Record FY16 Retail Sales: Discovery Sport and Jaguar XE
RECORD FY16 RETAIL SALES OF 521.6K UP 13% STRONG SALES OF DISCOVERY SPORT AND JAGUAR XE JAGUAR LAND ROVER Units in ‘000 Jaguar - FY16 vs FY15 Up 23% 2.6 76.9 12.1 16.6 45.7 FY15 94.4 11.8 11.7 34.2 36.5 FY16 F-TYPE XK XJ XF XE Land Rover - FY16 vs FY15 Up 11% 385.3 124.0 57.1 83.9 49.5 8.0 43.9 19.0
Slide 10: Record Q4 Retail Sales of 158.8k, Up 28%
RECORD Q4 RETAIL SALES OF 158.8K UP 28% JAGUAR LAND ROVER ALL REGIONS UP STRONGLY Units in ‘000 North America Up 24% 23.3 18.6 4.7 Q4 FY15 28.9 23.5 5.4 Q4 FY16 UK Up 23% 28.7 23.8 4.9 Q4 FY15 35.4 26.8 8.7 Q4 FY16 China Up 19% 1.1 23.5 18.5 3.9 Q4 FY15 28.0 12.4 10.9 4.7 Q4 FY16 Q4 FY16 North Ameri
Slide 11: Key Profit Drivers
KEY PROFIT DRIVERS JAGUAR LAND ROVER FY16 EBITDA £3.31b (14.9%) and Q4 EBITDA £1.07b (16.2%) before Q4 one-time reserves and charges of £166m including a U.S. recall of potentially faulty passenger airbags supplied by Takata, doubtful debts and previously capitalised investment Solid EBITDA margins
Slide 12: Consolidated Cash Flow
CONSOLIDATED CASH FLOW JAGUAR LAND ROVER INVESTMENT LARGELY FUNDED BY EBITDA Quarter ended 31 March 12 months ended 31 March (£ millions, unless stated) 2016 2015 Change 2016 2015 Change EBITDA as reported 903 1,016 (113) 3,147 4,132 (985) Working capital and non cash accruals 1,163 186 977 579 (116
Slide 13: Financing Structure: Strong Liquidity
FINANCING STRUCTURE JAGUAR LAND ROVER STRONG LIQUIDITY £ million 21% Total Balance Sheet Debt at 31 Mar 2016 £mn 7,000 6,521 19% Bonds 2,392 6,000 5,748 Short term borrowings 116 1,870 Finance lease obligations 11 5,000 1,485 Pre paid financing costs (19) 4,000 Total 2,500 3,000 4,651 2,000 4,263 1,
Slide 14: Exciting New Products
EXCITING NEW PRODUCTS JAGUAR LAND ROVER RECENT AND UPCOMING PRODUCTS TO DRIVE GROWTH Auto EXPRESS NEWCAR AWARDS WINNER 2015 XF – Launched in China Dec 15 B CX 911 XJ 16MY – Launched in China Feb 2016 F-PACE – Launched in April 2016 Auto EXPRESS NEWCAR AWARDS WINNER 2015 XE – Launched in US May 2016
Slide 15: Other Strategic Developments
OTHER STRATEGIC DEVELOPMENTS JAGUAR LAND ROVER FUTURE TECHNOLOGICAL AND BUSINESS INITIATIVES Autonomous Vehicles • JLR demonstrated highly autonomous vehicle technologies to EU Transport Ministers, including ‘hands free’ driving in April 2016 • JLR is investing in the UK’s first “connected corridor”
Slide 16: Environmental Strategy
ENVIRONMENTAL STRATEGY JAGUAR LAND ROVER IMPROVING OUR ENVIRONMENTAL PROFILE Light-weighting • Increased application of aluminium to our vehicle platforms • High aluminium content used across our range of vehicles, excluding Evoque and Discovery Sport • Our in house engines are manufactured to inclu
Slide 17: Looking Ahead: Investment to Drive Profitable Growth
LOOKING AHEAD JAGUAR LAND ROVER INVESTMENT TO DRIVE PROFITABLE GROWTH JLR’s strategy continues to be to invest in new products, technology and manufacturing capacity to grow profitably. We expect investment spending in the region of £3.75b in FY17. JLR intends to continue to generate strong operatin
Slide 18: Q&A
JAGUAR LAND ROVER Q&A KENNETH GREGOR CFO, JAGUAR LAND ROVER -18 -
Slide 19: 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 20: Additional Slides
JAGUAR LAND ROVER ADDITIONAL SLIDES - 20 -
Slide 21: Income Statement
INCOME STATEMENT JAGUAR LAND ROVER Quarter ended 31 March 12 months ended 31 March (£ millions, unless stated) 2016 2015 Change 2016 2015 Change Revenues 6,594 5,826 768 22,208 21,866 342 Material and other cost of sales (3,828) (3,417) (411) (13,146) (13,185) 39 Employee costs (648) (550) (98) (2,3
Slide 22: Wholesale Volumes by Geography FY16
WHOLESALE VOLUMES BY GEOGRAPHY FY16 JLR WHOLESALE VOLUME OF 509,334 up 9% JAGUAR LAND ROVER Units in ‘000 North America Up 38% 79.0 108.9 63.5 90.4 15.5 18.4 FY15 FY16 UK Up 26% 88.1 111.1 70.1 81.9 18.0 29.3 FY15 FY16 China* Down (45)% 115.3 63.9 94.1 48.4 21.1 15.5 FY15 FY16 FY16 North America, 21
Slide 23: Wholesale Volumes by Carline FY16
WHOLESALE VOLUMES BY CARLINE FY16 JLR WHOLESALE VOLUME OF 509,334 up 9% JAGUAR LAND ROVER Units in ‘000 Jaguar - FY16 vs FY15 Up 33% 102.1 76.5 0.1 12.6 F-TYPE 12.2 1.7 12.2 XK 2.1 16.3 36.2 F-PACE XJ 45.9 39.2 XF XE FY15 FY16 Land Rover - FY16 vs FY15 Up 4% 407.2 390.0 91.7 119.8 Range Rover Evoque
Slide 24: Record Q4 Retail Sales by Carline
RECORD Q4 RETAIL SALES OF 158.8K UP 28% STRONG SALES OF DISCOVERY SPORT AND JAGUAR XE JAGUAR LAND ROVER Units in ‘000 Jaguar - Q4 FY16 vs Q4 FY15 Up 54% 29.9 19.4 3.1 3.0 F-TYPE XK 0.3 2.9 3.8 11.0 XJ 12.4 12.8 XF XE Q4 FY15 Q4 FY16 Land Rover - Q4 FY16 vs Q4 FY15 Up 23% 129.0 104.9 33.0 Range Rover
Slide 25: Wholesale Volumes by Geography Q4
WHOLESALE VOLUMES BY GEOGRAPHY Q4 JLR WHOLESALE VOLUME OF 149,895 up 20% JAGUAR LAND ROVER Units in ‘000 North America UK China* Up 26% Up 17% Down (10)% 30.9 36.4 19.1 24.5 31.0 17.2 23.8 25.2 29.6 15.3 12.2 20.1 4.4 7.0 5.8 6.8 3.9 5.0 Q4 FY15 Q4 FY16 Q4 FY15 Q4 FY16 Q4 FY15 Q4 FY16 Q4 FY16 North
Slide 26: Wholesale Volumes by Carline Q4
WHOLESALE VOLUMES BY CARLINE Q4 JLR WHOLESALE VOLUME OF 149,895 up 20% JAGUAR LAND ROVER Units in ‘000 Jaguar - Q4 FY16 vs Q4 FY15 Up 60% 0.2 20.1 2.9 3.7 - 13.4 Q4 FY15 0.0 1.7 32.2 3.1 4.8 12.4 10.2 Q4 FY16 F-TYPE XK F-PACE XJ XF XE Land Rover - Q4 FY16 vs Q4 FY15 Up 12% 117.7 105.1 27.7 Range Rov
Slide 27: Financing Structure: Strong Liquidity
FINANCING STRUCTURE STRONG LIQUIDITY JAGUAR LAND ROVER As at 31 March (Ł millions, unless stated) 2016 2015 Change Cash and cash equivalents 3,399 3,208 191 Financial deposits 1,252 1,055 197 Cash and financial deposits 4,651 4,263 388 Undrawn 5 years revolving credit facilities 1,870 1,485 385 Tota
Slide 28: Product and Other Investment
PRODUCT AND OTHER INVESTMENT CAPITAL EXPENDITURE TO GROW THE BUSINESS JAGUAR LAND ROVER Quarter ended 31 March 12 months ended 31 March (Ł millions, unless stated) 2016 2015 Change 2016 2015 Change R&D expense Capitalised 298 308 (10) 1,242 1,158 84 Expensed 102 73 29 318 253 65 Total R&D expense 40