Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Q4 FY20 Earnings Presentation
49 slides from Tata Motors Passenger Vehicles's earnings presentation, Jun 15, 2020
Slide 1: Tata Motors Group: Results Q4 FY20 & FY20
TATA MOTORS GROUP : RESULTS Q4 FY20 & FY20 | 15th June 2020
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: Key highlights of the year
Key highlights of the year BS VI readiness for CV Range Fully refreshed BS VI- PV range Tata Altroz launch Unveiled the Nexon EV, powered by launched New Discovery Sport launched in China First deliveries of New Defender in UK Evoque and Discovery Sport PHEVs Project Vector mobility concept launched
Slide 4: Key highlights of the year - Contd
Key highlights of the year - Contd JLR and BMW to collaborate on SOTA announced, including Pivi Pro infotainment next-generation Electric Drive Units Promoter’s equity support PV Subsidiarisation approved by the board Seamless transition to BSVI with negligible inventory Active Management actions 4
Slide 5: FY20 Consolidated: Revenue ₹261 KCr (14%), EBIT (0.2)%; FCF ₹(9.2)K Cr
FY20 Consolidated Revenue ₹ 261 KCr (14%), EBIT (0.2)%; FCF ₹(9.2)K Cr ₹Cr. Q4 FY’19 Q4 FY’20 Change FY’19 FY’20 Change Global Wholesale (in 000s) 357.2 231.3 (35)% 1,305.0 1,006.2 (23)% Revenue 86,422 62,493 (28)% 301,938 261,068 (14)% EBITDA% 9.7 4.6 (510)Bps 8.9 8.4 (50)bps EBIT% 3.4 (5.0) (840)
Slide 6: Revenue down 14%; Volumes down 23%
FY20 Consolidated Revenue down 14%; Volumes down 23% Net revenue at ₹ 261KCr down 14% Key highlights Rs ‘000 Cr 39.5 TML (S) revenue down 37% ( -8.3% on total growth) 5.9 7.0 11.6 • Retails (Domestic) @ 510K units down 23%; 301.9 • CV: down 22%, PV: down 25% 261.0 (13.1)% (2.3)% (2.0)% 3.9% • Wholes
Slide 7: EBIT near breakeven
FY20 Consolidated EBIT near breakeven ₹ Cr. IndAS EBIT FY 1.2% 0.6% (2.1)% 0.1% (0.2)% EBIT Q4 3.4% (6.0)% (2.9)% 0.5% (5.0)% JLR details are as per Ind AS For analytical purposes only TML (S) – Tata Motors Standalone (Incl. Joint Operations); JLR – Jaguar Land Rover 7
Slide 8: Liquidity
Debt profile JLR £ 5.6 b In ₹ KCr TML (S) ₹6.7KCr 5.8 Net Auto Debt 6.0 5.9 5.7 Liquidity RCF 1,500 40.9 44.9 42.3 39.7 RCF 1,935 28.4 Cash Q4-FY19 Q1-FY20 Q2-FY20 Q3-FY20 Q4-FY20 Cash 5,168 3,664 Net Auto Debt Lease Strong liquidity and debt maturities well spread out 8
Slide 9: Actions to improve cash flows
Actions to improve cash flows Jaguar Land Rover India Business Area Comment Area Comment Capex Reduced by 40% to £2.5B in FY21; Capex Reduced by 66% to Rs 1500 Cr in FY21; rationalised FY22 plans being recalibrated rationalised FY22 plans being recalibrated Structural Charge+ targets increased to £5
Slide 10: PV India actions to 'Win Sustainably'
PV India actions to ‘Win Sustainably’ Actions Details 1 Reimagine PV • Rejuvenate front end sales and service 2 Activate the new product • Drive salience and customer preference of the range fully refreshed BSVI range 3 Create separate legal entity • Drive transparent capital allocation and focus fo
Slide 11: Corporate actions
Corporate actions • Tata Motors Group is a flagship of the Tatas and enjoys full promoter support • Actions are underway to significantly deleverage the Tata Motors Group • JLR to become sustainably cash positive from FY22 while becoming future ready 11
Slide 12: Jaguar Land Rover
Jaguar Land Rover Prof Sir Ralf Speth and Adrian Mardell
Slide 13: JLR FY20: PBT £(393)m, EBIT breakeven; positive Q4 cashflow
FY20 PBT£(393)m*, EBIT breakeven; positive Q4 cashflow IFRS £m Q4 FY’19 Q4 FY’20 Change FY’19 FY’20 Change Retails (in 000s) 158.9 109.9 (31)% 578.9 508.7 (12)% Revenue 7,134 5,426 (24)% 24,214 22,984 (5)% EBITDA% 9.8 4.8 (500)Bps 8.2 8.7 50 bps EBIT% 3.1 (4.6) (770) bps (0.7) (0.1) 60 bps PBT (bei)
Slide 14: Total retails down 12.1%
FY20 Total retails down 12.1%, Retail units in ‘000 Includes c. 44k unit Covid impact 508.7 129.3 106.6 107.0 90.1 75.5 North America UK Europe China Overseas Total JLR YoY (7.5)% (9.6)% (16.1)% (8.9)% (20.3)% (12.1)% Industry (3.9)% (10.9)% (4.8)% (16.6)% N/A Wholesales (excl. CJLR) China down 8.9%
Slide 15: New Evoque up 25%; I-PACE up 40.0%
FY20 New Evoque up 25%; I-PACE up 40.0% 15
Slide 16: PBT £(393)m, EBIT breakeven
FY20 PBT £(393)m*, EBIT breakeven IFRS, £m FY20 PBT (includes £0.8b Charge savings) FY20 excl. Covid* FME & selling £599 £228m £206 D&A £254m £(393) £(358) Admin £69m Increased VME Manufacturing L&O; interest £(469) (6.9% to 8.8%), £142m £(57)m £229 incl US residual (0.6%) Warranty Volume & mix £(12
Slide 17: Cash flow £(702)m, £563m better vs FY19
FY20 Cash flow £(702)m. £563m better vs FY19 IFRS, £m D&A £1,910m £2,771 £(152) £(3,294) £2,226 £65 £(393) £366 £(702) PBT excl. COVID- Add back non-cash Tax Cash profit after Investment Working capital Op.cash flow incl. COVID-19 impact Op.cash flow excl. 19 tax COVID-19 COVID-19 vs. FY19 (35) 121
Slide 18: Investment spending £3.3b, £516m lower YoY
FY20 Investment spending £3.3b, £516m lower YoY IFRS, £m 1,504 3,294 3,000 2,500 2,000 421 1,790 1,369 1,500 1,000 500 0 Capitalised Expensed Total Capital Total R&D R&D R&D Investment* Investment vs. FY19 207 - 207 309 516 * Of which £1,281m relates to purchases of property, plant and equipment in
Slide 19: JLR Strategy and Outlook
JLR STRATEGY AND OUTLOOK
Slide 20: Community response
Community response Visor production for frontline workers (14k/wk) Vehicles supporting Red Cross internationally 42 vehicles deployed to UK community causes Guidelines to support employees volunteering IT equipment redeployed to hospitals Covid dataset simulations with university partners We are doi
Slide 21: Crisis response
Crisis response • Temporary shutdowns across all manufacturing in line with host government policy PRODUCTION & SUPPLY • Production restart in China JV on 2nd Mar and most other sites since 18th May (see following pages) • Demand–led production prioritising most profitable sales and China recovery •
Slide 22: JLR resuming business as lockdown eases
JLR resuming business as lockdown eases JLR production restart schedule since restart JLR retailer restart status UK (Solihull) Range Rover, RR Sport, Velar, F-PACE 24th Mar 18th May % Sales sites open/partially open UK (Halewood) Evoque, Discovery Sport 20th Mar 8th Jun 100% UK (Castle Bromwich) Ja
Slide 23: Encouraging sales recovery in China
Encouraging sales recovery in China Showroom Leads Retail Sales China JV Imports Monthly average vs. prior year 11,343 111% 114% 77% 78% 8,661 8,783 8,779 8,780 5,092 8,068 23% 7,300 6,977 6,828 3,977 3,913 3,785 3,810 3,078 Jan-20 Feb-20 Mar-20 Apr-20 May-20 3,170 3,670 4,566 3,261 Open JLR Retaile
Slide 24: Signs of recovery in other markets too
Signs of recovery in other markets too Retail units in ‘000 China North America UK Europe Overseas Total 17.3 39.9 38.7 31.3 12.4 10.1 24.0 9.0 8.1 7.9 7.9 7.0 6.8 7.1 6.5 6.3 14.7 5.9 5.8 5.5 4.6 4.6 3.9 3.0 3.0 1.7 1.8 1.3 0.6 0.5 JLR YoY (%) (22.3) (86.7) (41.6) (3.1) 4.2 (9.6) (0.6) (60.8) (63.0
Slide 25: Defender 110: orders being delivered
Defender 110: orders being delivered Planned start of deliveries by region UK Europe N. America China Overseas May 2020 May 2020 June 2020 July 2020 June/ July Total Defender orders now > 22,000 25
Slide 26: New Evoque & Discovery Sport sales encouraging
New Evoque & Discovery Sport sales encouraging Evoque global retails by month Discovery Sport global retails by month Available 12000 8000 10000 6000 8000 6000 4000 4000 2000 2000 0 0 YoY 64.1% 50.9% 51.2% 31.4% 25.2% 33.2% 44.0% 58.4% (11.2)% (56.9)% (30.2)% YoY (12.7)% (17.5)% (10.9)% 3.4% 4.4% 19
Slide 27: Charge+ Progress
Charge + Progress £B Charge Charge+ FY19 FY20 to Q3 Total to FY20 Q4 Total to Q4 FY20 Comments FY20 Q3 Date Progress continues with strict investment Investment 0.7 0.8 1.5 0.4 1.9 prioritisation and controls Working Capital 0.4 0.3 0.7 -0.1 0.6 Q4 inventory adversely impacted by the crisis Q4: £30m
Slide 28: Charge+ targets raised further
Charge+ targets raised further Q3 FY19 Q3 FY20 update Q4 FY20 status Programme established Target extended Target extended further £2.5b target £4b target Q3 update £5b Q4 target status By Q4 FY21 By Q4 FY21 By Q4 FY20 £4b target £5b target +£1.1b from +£1b from £2.9b status Q3 target £3.5b achiev
Slide 29: Charge+ plan for FY21
Charge+ plan for FY21 Target £750m Non-recurring items Target £750m Sustained improvements Overheads Warranty Material cost e.g. SG&A Variable Profit ≤4% of revenue Other savings 10% savings, longer term Inventory Improve sales Investment mix and VME e.g. £50m p.m. furlough benefit ≤£3b target level
Slide 30: FY21 funding plans
FY21 funding plans 1,800 IFRS, £m 1,600 Completed and drawn Other potential FY21 funding actions 1,400 1,200 1,000 800 63 567 600 400 200 0 China 3-year Fleet buyback Other local / working Government Capital markets revolving facility* facility upsize capital funding funding programmes * RMB 5b 3-ye
Slide 31: Looking ahead
Looking ahead Q1 FY21 outlook • Q1 FY21 will be significantly impacted by Covid • Total free cash outflow limited to £1.5b in April and May, including one-time working capital outflow from the plant shutdowns of £1.2b; free cash outflow in Q1 FY21 expected to be less than £2 billion • Adequate liqui
Slide 32: Turnaround 2.0: Managing the slowdown by doing it right
Turnaround 2.0: Managing the slowdown by doing it right
Slide 33: Revenue down 37%, EBIT at (7.1)%
FY20 Revenue down 37%, EBIT at (7.1)% ₹Cr. Q4FY’19 Q4FY’20 Change FY’19 FY’20 Change Wholesale (in ooo’s) 193.9 102.9 (47)% 732.4 475.2 (35)% Revenue 18,561 9,733 (48)% 69,203 43,928 (37)% EBITDA% 7.0 (5.5) (1250) bps 8.2 0.6 (760) bps EBIT% 2.3 (15.6) (1790) bps 3.8 (7.1) (1090) bps PBT (bei)* 347
Slide 34: PBT(bei) at ₹(4.6)KCr, EBIT (7.1)%
FY20 PBT(bei) at ₹(4.6)KCr, EBIT (7.1)% ₹ Cr. IndAS D&A and PDE : ₹(607)Cr Other Income : ₹(1,336)Cr Employee : ₹ (52)Cr Others: ₹ (127)Cr Others: ₹ 119 Cr EBIT % 3.8% (8.6)% (2.8)% 1.4% (1.4)% 0.2% 0.3% (7.1)% For analytical purposes only COVID-19 impact: ₹ 500 Cr 3434
Slide 35: Free Cash Flows at ₹(6.0)KCr
FY20 Free Cash Flows at ₹(6.0)KCr ₹ Receivables ₹ 1,273 Cr Inventory ₹ 825 Cr Payables, acceptances &others ₹ 3,892 Cr YoY (7,218) +1,475 +90 (5,653) +240 (2,094) (7,507) * Free cash flow is measured as cash flow from operating activities, less payments for property, plant and equipment and intangib
Slide 36: Investment Spending ₹5.3KCr
FY20 Investment Spending ₹5.3KCr ₹ Cr. IndAS YoY (73) +259 +186 (167) +19 FY21 capex restricted to Rs 1.5K Cr; Regulatory spends & products in advanced stages prioritized 3636
Slide 37: CV: Market Share improves in MHCV & ILCV
FY20 CV : Market Share improves in MHCV & ILCV 45.1% Market Share 44.0% 42.8% 43.0% 43.0% FY19 Q1'20 6M'20 9M'20 FY20 MHCV Market Share CV Passenger ILCV SCV & Pickups 57.5% 57.4% 47.4% 47.2% 44.0% 40.1% 56.2% 43.3% 46.2% 46.3% 38.6% 42.5% 55.3% 38.0% 37.9% 55.0% 37.2% 40.9% 45.4% 40.5% FY19 Q1'20 6
Slide 38: CV: Revenue down 39%, EBIT at (0.3)%
FY20 CV : Revenue down 39%, EBIT at (0.3)% ₹Cr. Q4FY’19 Q4FY’20 Change FY’19 FY’20 Change Retails (in ooo’s) 124.9 86.0 (31)% 459.7 361.0 (22)% Wholesale (Incl Export) (in ooo’s) 139.4 70.6 (49)% 519.9 341.9 (34)% Revenue 14,496 7,016 (52)% 54,037 32,933 (39)% EBITDA% 9.6 0.7 (890) bps 11.0 4.2 (680
Slide 39: PV: Retails 13% higher than wholesales
FY20 PV: Retails 13% higher than wholesales Market Share 6.3% 5.2% 4.8% 4.7% 4.8% FY19 Q1'20 6M'20 9M'20 FY20 7.4% Passenger Car 7.0% UVs 5.9% 6.1% 5.9% 5.6% 4.0% 3.9% 4.0% 4.2% FY19 Q1'20 6M'20 9M'20 FY20 FY19 Q1'20 6M'20 9M'20 FY20 “Win Sustainably” by getting basics right and ensuring retails > w
Slide 40: PV: Revenue down 28%, EBIT at (25.5)%
FY20 PV : Revenue down 28%, EBIT at (25.5)% ₹Cr. Q4FY’19 Q4FY’20 Change FY’19 FY’20 Change Retails (in ooos) 45.9 27.3 (41)% 199.0 148.8 (25)% Wholesale (Incl Export) (in ooos) 54.5 32.3 (41)% 212.5 133.3 (37)% Revenue 4,043 2,693 (33)% 15,052 10,772 (28)% EBITDA% (0.1) (19.3) (1920) bps 0.1 (9.8) (
Slide 41: Crisis response
Crisis response Secure Secure Secure Growth Costs cash CV – Step up Drive Capex and Reduce ₹1.5KCr of customer Working capital costs engagement savings of ₹4.5KCr Secure funding of Reimagine PV ₹4KCr Recommit to improving resilience further; Playing to Win while remaining Fit to Compete 4141
Slide 42: Secure Growth - CV: Stepping up customer engagement
Secure Growth - CV: Stepping up customer engagement 1 BCP# Development & Deployment 2 Enhanced Customer Engagement & Support BCP formed & deployed across 10 themes across all channel Microsegment focus to identify green shoots / growth pockets partners and subsidiaries Identification of custom
Slide 43: Secure Growth PV - Reimagine PV
Secure Growth PV - Reimagine PV MILESTONES: Sustain and Grow • Drive Sales to achieve double digit market share on the back of strong products, while strengthening margins • Strengthen Operating Cash flow by bringing structural corrections in Variable and Fixed costs • Expand and strengthen product
Slide 44: Secure Growth - PV: BS VI & Beyond
Secure Growth - PV: BS VI & Beyond Redefining every segment with class-leading design, safety, technology and driving dynamics 4444
Slide 45: Secure Costs: Deliver ₹1.5KCr cost savings in FY21
Secure Costs: Deliver ₹ 1.5KCr cost savings in FY21 Costs Investment Working Capital Savings of ₹ 1.5KCr Reduce by ₹ 3.0K Cr Reduce by ₹ 1.5K Cr Total cash savings of ₹ 6.0KCr 4545
Slide 46: Secure Cash: FY21 term funding
Secure Cash: FY21 term funding ₹ Cr Other potential FY21 funding actions Option 1 Option 2 Warrants ₹ 4KCr of term funding being secured; Continue to evaluate other options 4646
Slide 47: Tata Motors Finance: Managed AUM ₹37KCr, PBT ₹149Cr
FY20: Tata Motors Finance Managed AUM: ₹ 37KCr, PBT ₹149Cr & Pre-tax ROE of 7.7% ₹Cr Ind AS • Managed AUM at ₹ 36,881 crs (down 3.7% over Mar’19). IndAS FY19 FY20 vs ’19 Market Share 26.2% 30.0% 380bps • Disbursals slowed down by 32% to ₹ 15,029 Cr led by long haul truck slowdown. PBT 123 149 21.1%
Slide 48: Looking ahead
Looking ahead • Suspending outlook till clarity emerges on demand. • Suspending outlook till clarity emerges on demand. Tata Motors (Standalone) • Q1 FY21 will be significantly impacted by shutdowns; • With minimal revenues, Q1 FY 21 will be significantly expect cash outflow of up to £2b; weak with
Slide 49: Investor Relations Note
Investor Relations Note Thank You Gunter Butschek Prof Sir Ralf D. Speth CEO and MD, Tata Motors CEO, Jaguar Land Rover P. B. Balaji Adrian Mardell CFO, Tata Motors Group CFO, Jaguar Land Rover Vijay Somaiya Bennett Birgbauer Treasurer, Tata Motors Treasurer, Jaguar Land Rover Tata Motors Investor R