Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Q1 FY2021 Earnings Presentation
49 slides from Tata Motors Passenger Vehicles's earnings presentation, Jul 31, 2020
Slide 1: Tata Motors Group: Results Q1 FY21
TATA MOTORS GROUP: RESULTS Q1 FY21 | 31st July 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: Recent product and business highlights
Recent product and business highlights 24*7 vehicle assistance service ‘Sarthi Aram Kendra’ medical assist Financial assistance A next-gen connected vehicle solution Launched ‘Click to Drive’ sales platform Provides holistic support to truck New 6-cylinder Ingenium diesel connecting 750+ sales
Slide 4: Consolidated: Revenue ₹32.0K Cr, EBIT (15.0)%, FCF ₹(18.2)K Cr
Q1FY21 Consolidated Revenue ₹ 32.0KCr (48.0)%, EBIT (15.0)%; FCF ₹(18.2)K Cr ₹Cr. Q1 FY’20 Q1 FY’21 Change Global Wholesale (K units) 256.8 91.8 (64)% Revenue 61,467 31,983 (48)% EBITDA% 6.1 2.6 (350)Bps EBIT% (2.6) (15.0) (1240) Bps PBT (bei) (3,129) (6,187) - PBT (3,238) (6,184) - Free Cash Flow (
Slide 5: Revenue down 48%; Volumes down 64%
Q1FY21 Consolidated Revenue down 48%; Volumes down 64% Net revenue at ₹ 32.0KCr down 48% Key highlights Rs ‘000 Cr TML (S) revenue down 80% ( -17.4% on total growth) 30.8 • Retails (Domestic) @ 21.6K units down 83%; 1.4 6.9 • CV: down 97%, PV: down 55% 61.5 6.8 (50.2)% 11.1% 2.3% (11.2)% • Wholesale
Slide 6: EBIT at (15.0)%
Q1FY21 Consolidated EBIT at (15.0)% ₹ Cr. IndAS EBIT % (2.6)% (7.5)% (5.3)% 0.4% (15.0)% JLR details are as per Ind AS For analytical purposes only TML (S) – Tata Motors Standalone (Incl. Joint Operations); JLR – Jaguar Land Rover 6
Slide 7: Free Cash Flows (Auto) outflow of ₹(18.2K Cr)
Q1FY21 Consolidated Free Cash Flows (Auto) outflow of ₹(18.2KCr) (3,058) +1,489 +203 (1,366) +2,894 (9,401) +1,272 (6,604) Auto FCF better than expectations; One time working capital unwind impacts the most 7
Slide 8: Liquidity
Debt profile £ 4.7b ₹6.9KCr Net Auto TML Consolidated In ₹ KCr Net Auto Debt Debt 5.9 RCF Lease Liquidity RCF 1,935 1,500 5.9 Cash Cash 61.9 2,748 5,399 42.3 JLR TML (S) FY20 Q1-FY21 Strong liquidity and debt maturities well spread out 8
Slide 9: Update on deleverage actions
Update on deleverage actions Jaguar Land Rover India Business Area Comment Area Comment Charge+ Targets enhanced further to £6B Cost, Cash FY21: On track to deliver Rs 6000Cr Capex FY21: £2.5B Capex FY21: Rs 1500Cr FCF JLR to be FCF positive from FY22 FCF TML to be FCF positive from FY21 TML Group t
Slide 10: Jaguar Land Rover
Jaguar Land Rover Prof Sir Ralf Speth and Adrian Mardell
Slide 11: COVID results in lower sales and loss in quarter
Q1FY21 COVID results in lower sales and loss in quarter IFRS £m Q1 FY’20 Q1 FY’21 Change Retails (in 000s) 128.6 74.1 (42)% Revenue 5,074 2,859 (44)% EBITDA% 4.2 3.5 (70)Bps EBIT% 5.5 (13.6) (810) bps PBT (395) (413) - PAT (402) (648) - Free Cash Flow (719) (1,512) - Retails Revenue EBITDA EBIT FCF
Slide 12: Retails down 42.4%, improving through the quarter
Q1FY21 Retails down 42.4%, improving through the quarter Retail units in ‘000 74.1 June retails up YoY 23.7 20.8 11.5 9.7 8.3 Total JLR YoY (32.1)% (69.5)% (59.1)% (2.5)% (46.9)% (42.4)% Industry (33.3)% (70.1)% (50.9)% 2.3% N/A Wholesales (excl. CJLR) Units 10.7 9.1 11.0 8.6 9.5 48.9 YoY (58.8)% (6
Slide 13: Signs of recovery continue in all regions
Q1FY21 Signs of recovery continue in all regions Retail units in ‘000 China North America UK Europe Overseas Total 17.3 39.9 38.7 Land Rover up 35.3 11.6% YoY in China 31.3 in Q1 12.4 10.1 24.0 9.9 8.8 9.0 8.1 7.9 7.9 7.0 6.8 7.1 6.5 6.5 6.3 14.7 5.9 5.8 5.2 5.5 4.6 4.6 4.9 3.9 3.0 3.0 1.7 1.8 1.3 0
Slide 14: All models impacted by the pandemic
Q1FY21 All models impacted by the pandemic Retail units in ‘000 11.6 11.2 10.7 8.1 7.2 4.6 4.7 4.4 3.6 2.5 2.2 1.9 0.6 0.9 XE XF XJ E-PACE I-PACE F-PACE F-TYPE DefenderDiscoveryDiscovery RR RR RR Range Sport Evoque Velar Sport Rover Retail volumes include sales from Chery Jaguar Land Rover. For stat
Slide 15: Covid Sales impact drives £413m loss
Q1FY21 Covid Sales impact drives £413m loss IFRS, £m Volume (474) VME (7.6% to 7.5%) Manufacturing 33 FME & selling 163 Operating FX 54 China JV 24 Warranty (5.9% to Furlough 116 Realised FX hedges 100 3.8%) 107 Admin 41 FX / Commodity Reval P&A (60) D&A (28) 116 Material cost (52) Interest (15) De-
Slide 16: Cash outflow £1.5b, £500m better than guided
Q1FY21 Cash outflow £1.5b, £500m better than guided IFRS, £m Payables (2,167) D&A 491 Inventory 841 582 (24) 145 Receivables 244 (413) (548) (1,512) (1,109) vs. Q1 FY20 (18) (117) (135) 247 (905) (793) Includes £1.1b one-time working capital unwind, June cashflow breakeven 16
Slide 17: Investment spend £548m, significantly down YoY
Q1FY21 Investment spend £548m, significantly down YoY IFRS, £m 273 548 107 275 168 Capitalised Expensed Total Capital Total B/(W) than R&D R&D R&D Investment* Investment prior year 171 (24) 147 100 247 * Of which £222m relates to purchases of property, plant and equipment in Q1 FY21 vs. £301m in Q1
Slide 18: JLR Strategy and Outlook
JLR STRATEGY AND OUTLOOK
Slide 19: Significant risks and uncertainties remain
Significant risks and uncertainties remain Despite signs of regional recovery Improving industry volumes Diesel uncertainty/emissions Brexit (Jan 2021 transition) Increasing sales of EV’s Diesel uncertainty/emissions • Improving industry volumes Improving industry volumes • Upcoming presidential ele
Slide 20: Demand led restart with c. 98% of retailers open
Demand led restart with c. 98% of retailers open JLR retailers status by region JLR production restart schedule Restart Shifts % JLR retailer sales sites presently open* China JV (Changshu) Evoque, Disc. Sport, E-PACE, XEL, XFL 2nd Mar 1 100% 100% 99% 98% 98% UK (Solihull) Range Rover, RR Sport, Vel
Slide 21: Increased retailer inventories coming down
Increased retailer inventories coming down Retailer inventory Retailer inventory days' supply Ideal days' supply 120k 160 110k 88,792 140 100k 90k 120 80k 90 100 70k 60k 80 50k 60 40k 30k 55 40 20k 20 10k 0k 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Company inventories (not shown
Slide 22: Range Rover and Range Rover Sport enhanced
Range Rover and Range Rover Sport enhanced Upgraded: Range Rover Upgraded: Range Rover Sport Fifty special edition SVR Carbon edition Both models • New Ingenium six-cylinder diesels give V8-like performance, and with 48V MHEV as standard, joining existing MHEV 6 cylinder petrol, PHEV and ICE options
Slide 23: Defender launch update
Defender launch update • Response to new Defender continues to be promising with 7.9K wholesales in Q1 • Just launched in China at Chengdu Autoshow, with positive response • Order bank now over 30k • Slovakia production now up to 2 shift to meet demand as product gets to dealerships and lockdown eas
Slide 24: Electrification continues across the range
Electrification continues across the range Battery electric (BEV) Plug-in Hybrid (PHEV) Mild Hybrid (MHEV) 1 BEV, 8 PHEV and 11 MHEV available by end of FY21 1 BEV, 4 PHEV and 5 MHEV available now 24
Slide 25: Strong Charge+ progress: £1.2b savings in Q1
Strong Charge+ progress : £1.2b savings in Q1 Q1 FY21 progress of £1.2b Increasing target further to £2.5b Programme Implementation of inventory control £90m Manufacturing £2.5b prioritisation & non- incl. shutdowns tower, with demand- product investment led focus and £130m Commercial reductions shu
Slide 26: Charge+ FY21 focus
Charge+ FY21 focus Cash (c.50%) Costs (c.50%) £2.5b c.£2.5b target Improve sales mix Towards 10% 4% of revenue Spend reductions £3b target and VME longer-term target across the £1.2b savings target business Investment Inventory Variable Profit Material Cost Warranty Overheads £1.3b savings left
Slide 27: £647m new funding completed and drawn in Q1
£647m new funding completed and drawn in Q1 1,800 IFRS, £m 1,600 1,400 Completed and drawn Other potential FY21 funding actions 1,200 1,000 800 81 600 567 400 200 0 China 3-year Working capital Working Local funding Capital markets revolving facility* facilities capital funding programmes * RMB 5b 3
Slide 28: Looking ahead
Looking ahead • Outlook remains uncertain • Q2 FY21 sales volumes, revenue and profits expected to be better than Q1 as recovery continues • Liquidity to improve with positive free cash flows between Q2-Q4 FY21 • Committed to sustainable positive cash flow from FY22 and reduction in net debt while b
Slide 29: Managing the slowdown by doing it right
Managing the slowdown by doing it right
Slide 30: Revenue down 80%, PBT (₹2.2K Cr), FCF (₹4.3K Cr)
Q1FY21 Revenue down 80%, PBT (₹2.2KCr), FCF (₹4.3KCr) ₹Cr. Q1FY’20 Q1FY’21 Change Wholesale (K units) 136.7 25.3 (81)% Revenue 13,352 2,687 (80)% EBITDA% 6.6 (28.6) (3520) Bps EBIT% 0.8 (60.6) (6140) Bps PBT (bei) (40) (2,141) - PBT (48) (2,190) - Free Cash Flow (4,623) (4,294) - Volumes (Dom) Reven
Slide 31: PBT at ₹(2.2)K Cr
Q1FY21 PBT at ₹(2.2)KCr ₹ Cr. IndAS D&A and PDE : ₹(83)Cr Other Income : ₹(207)Cr Employee : ₹ 183Cr Finance Cost : ₹(113)Cr FME& Others: ₹ 278 Cr Others : ₹(145)Cr EBIT % 0.8% (73.1)% 0.7% 0.2% 14.2% (0.9)% (2.6)% (60.6)% For analytical purposes only Significant negative operating leverage despite
Slide 32: Free Cash Flows at ₹(4.3)K Cr; Better than expected
Q1FY21 Free Cash Flows at ₹(4.3)KCr; Better than expected ₹ Receivables ₹ 164 Cr Inventory ₹ 66 Cr Payables, acceptances & Others ₹ 3,355 Cr B/ (W) YoY (2,101) +403 +16 (1,682) +471 +1,539 329 * Free cash flow is measured as cash flow from operating activities, less payments for property, plant and
Slide 33: Investment Spending ₹492Cr
Q1FY21 Investment Spending ₹492Cr ₹ Cr. IndAS B/(W) 283 (18) 265 189 454 YoY FY21 capex restricted to Rs 1.5K Cr; Regulatory requirements & products in advanced stages prioritized 3333
Slide 34: Cash savings of ₹1020Cr till date
Q1FY21 Cash savings of ₹1020Cr till date ₹ Cr Secure Cost Target Actual Q1 FY21 Comments FY21 Q1’21 Rs 1500Cr for the year secured. Investment prioritisation and Investment 3,000 480 controls in place Working capital savings to start from Q2 onwards Working Capital 1,500 - Employee costs, Marketing,
Slide 35: ₹4K Cr of term funding secured in Q1 FY21
₹ 4KCr of term funding secured in Q1 FY21 ₹ Cr Other potential FY21 funding actions Option 1 Option 2 Warrants Continue to evaluate options to shore up liquidity in the coming months while reducing net debt 3535
Slide 36: Commercial Vehicles
Commercial Vehicles
Slide 37: Market Share: MHCV improves; ILCV & SCV drops
Q1FY21 : Commercial Vehicles Market Share:- MHCV improves; ILCV & SCV drops on supply disruptions Market Share 45.1% 43.0% 29.6% FY19 FY20 Q1'21 MHCV Market Share CV Passenger ILCV SCV & Pickups 71.8% 57.4% 47.2% 44.0% 40.9% 55.0% 45.4% 40.1% 37.9% 39.8% 27.7% 24.0% FY19 FY20 Q1'21 FY19 FY20 Q1'21 F
Slide 38: Revenue down 86%, EBIT significantly impacted
Q1FY21 : Commercial Vehicles Revenue down 86%, EBIT significantly impacted ₹Cr. Q1FY’20 Q1FY’21 Change Retails (K units) 88.9 3.1 (97)% Wholesale (Incl Export) (K units) 99.4 10.7 (89)% Revenue 10,210 1,438 (86)% EBITDA% 8.6 (40.3) (4890) bps EBIT% 4.7 (64.8) (6950) bps Volumes (Dom) Revenue EBITDA
Slide 39: Demand situation
Q1FY21 : Commercial Vehicles Demand situation Challenges Bright Spots • Conservative approach by financiers • Utilisations improving across segments as freight movements increase • Lower freight & absolute utilisation • Rural economy to lead the revival with higher Rabi • Driver & labour unavailabil
Slide 40: TML actions: Phase-2 (Recovery)
Q1FY21 : Commercial Vehicles TML actions: Phase-2 (Recovery) Demand Generation Demand Fulfilment Cost Reduction & Cash Conservation • Up skilling & motivation of sales • Volume ramp-up in plants • Repurposed engineering to focus on force direct material cost reduction • De-bottlenecking supply chain
Slide 41: Passenger Vehicles
TATA MOTORS Connecting Aspirations Passenger Vehicles
Slide 42: PV: Market share increases sharply to 9.5%
Q1FY21 : Passenger Vehicles PV : Market share increases sharply to 9.5% Market Share 9.5% • Positive response for the ‘New Forever’ product range with BSVI launched in Jan ’20 6.3% • Enthusiastic response for Altroz - #2 Premium Hatch 4.8% • New Nexon & Tiago (BSVI) seeing significant traction • Sig
Slide 43: PV: Revenue down 61%, EBIT significantly impacted
Q1FY21 : Passenger Vehicles PV: Revenue down 61%,EBIT significantly impacted ₹Cr. Q1FY’20 Q1FY’21 Change Retails (K units) 41.1 18.6 (55)% Wholesale (Incl Export) (K units) 37.3 14.6 (61)% Revenue 3,096 1,223 (61)% EBITDA% 1.2 (14.5) (1560) bps EBIT% (9.9) (52.7) (4280) bps Volumes (Dom) Revenue EBI
Slide 44: Entire value chain deeply impacted by the pandemic
Q1FY21 : Passenger Vehicles Entire value chain deeply impacted by the pandemic Managing network Conservative lending in Managing supply for Demand momentum operations retail & channel finance demand fulfilment Revival in market driven by BTL activities remain NBFC vehicle loans dropped Chall
Slide 45: Interventions to improve supplies
Q1FY21 : Passenger Vehicles Interventions to improve supplies Pune, RJV and Sanand plant resumed operations with 35% manpower in compliance with the statutory guidelines by end of May’20, gradually improved to 70% in Jun’20 Production started in Jun’20 and being enhanced in Jul’20 to service dem
Slide 46: Multiple actions taken for recovery and growth
Q1FY21 : Passenger Vehicles Multiple actions taken for recovery and growth Sales Growth Aftersales Network Support & Transformation Digital Initiatives Profitability • Retail focus to be in sync • Home service to get vehicles • COVID support to channel • eCommerce platform - with changing consumer o
Slide 47: Tata Motors Finance: Managed AUM ₹37.1K Cr, PBT ₹26Cr
Q1FY21: Tata Motors Finance Managed AUM ₹ 37.1KCr, PBT ₹26Cr & Pre-tax ROE of 4.7% ₹Cr Ind AS • Disbursals down 87% to ₹491Cr - lower commercial vehicle sales. IndAS Q1 FY20 Q1 FY21 • Collections a key focus area; Since June’20, seen encouraging trend of Market Share 27.7% 22.4% customers coming out
Slide 48: Looking ahead
Looking ahead • Suspending outlook till clarity emerges on demand • Suspending outlook till clarity emerges on demand. Tata Motors (Standalone) • Q2 FY21 sales volumes, revenue and profits expected to • Q2 FY21 sales volumes, revenue and profits expected to be better than Q1 as recovery continues be
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