Tata Motors Limited · NSE:TMCV
Tata Motors — Q3 FY14 Earnings Presentation
62 slides from Tata Motors's earnings presentation, Feb 12, 2014
Slide 1: Tata Motors Limited Form 6-K
Table of Contents FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the Month of February 2014 Commission File Number: 001-32294 TATA MOTORS LIMITED (Translation of registrant’s nam
Slide 2: Table of Contents
Table of Contents TABLE OF CONTENTS Item 1: Form 6-K dated February 12, 2014 along with the Press Release.
Slide 3: Signature
Table of Contents SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised. Tata Motors Limited By: /s/ Hoshang K Sethna Name: Hoshang K Sethna Title: Company Sec
Slide 4: Jaguar Land Rover Automotive plc Interim report
Table of Contents Jaguar Land Rover Automotive plc Interim report for the three and nine months ended 31 December 2013
Slide 5: Table of contents
Table of Contents Table of contents Page Management’s discussion and analysis of financial condition and results of operations 2 General trends in performance (including results of operations) 3 Business risks and mitigating factors 5 Employees 5 Liquidity and capital resources 5 Acquisitions and di
Slide 6: Management's discussion and analysis of financial condition and results of operations
Table of Contents Management’s discussion and analysis of financial condition and results of operations The Company has continued to increase sales in the quarter, with revenue for the 3 months of £5,328 million, up 40% from £3,804 million in Q3 FY13. With an EBITDA margin of 17.9%, up 3.9 ppt from
Slide 7: General trends in performance (including results of operations)
Table of Contents General trends in performance (including results of operations) Overall strong volume growth Total retail volumes were 112,172 units for the quarter, an increase of 27% compared to Q3 FY13. Retail volumes were 19,008 units for Jaguar and 93,164 for Land Rover, up 59% and 22% respec
Slide 8: Performance in key geographical markets on retail basis
Table of Contents Performance in key geographical markets on retail basis Change Q3 FY14 Q3 FY13 (%) UK 15,297 13,969 10% North America 20,936 15,737 33% Europe 22,552 19,985 8% China 28,732 19,731 46% Asia Pacific 5,628 4,319 30% All other markets 20,027 14,917 34% Total JLR 112,172 88,658 27% Glob
Slide 9: Business risks and mitigating factors
Table of Contents Business risks and mitigating factors As discussed on pages 94-102, and elsewhere, of the Annual Report 2012-13 of the Company, Jaguar Land Rover is exposed to various business risks including the uncertainty of global economic conditions, fluctuations of currency exchange rates an
Slide 10: Borrowings
Table of Contents Borrowings The following table shows details of the Company’s financing arrangements as at 31 December 2013. Outstanding as at Undrawn 31 as at Facility December 31 December Facility amount Maturity 2013 2013 £ in millions £ in millions £ in millions Committed £500m Senior Notes 8.
Slide 11: Condensed Consolidated Income Statement (three months)
Table of Contents Condensed Consolidated Income Statement For the three months ended 31 December 2013 (unaudited) Three months ended Three months ended 31 December 2013 31 December 2012 (unaudited) (unaudited) Non- Non- Trading operating Trading operating Note result result Total result result Total
Slide 12: Condensed Consolidated Income Statement (nine months)
Table of Contents Condensed Consolidated Income Statement For the nine months ended 31 December 2013 (unaudited) Nine months ended Nine months ended 31 December 2013 31 December 2012 (unaudited) (unaudited) Non- Non- Trading operating Trading operating Note result result Total result result Total £m
Slide 13: Condensed Consolidated Statement of Comprehensive Income
Table of Contents Condensed Consolidated Statement of Comprehensive Income For the three and nine months ended 31 December 2013 (unaudited) Three months Three months Nine months Nine months ended ended ended ended 31 December 31 December 31 December 31 December 2013 2012 2013 2012 (unaudited) (unaud
Slide 14: Condensed Consolidated Balance Sheet
Table of Contents Condensed Consolidated Balance Sheet Note 31 December 2013 31 March 2013 £m £m (unaudited) (audited) Non-current assets Equity accounted investees 136 60 Other financial assets 606 195 Property, plant and equipment 2,944 2,335 Intangible assets 4,042 3,522 Other assets 10 8 Deferre
Slide 15: Condensed Consolidated Balance Sheet (continued)
Table of Contents Condensed Consolidated Balance Sheet (continued) Note 31 December 2013 31 March 2013 £m £m (unaudited) (audited) Equity attributable to shareholders Ordinary shares 1,501 1,501 Capital redemption reserve 167 167 Reserves 15 3,736 1,871 Equity attributable to shareholders 5,404 3,53
Slide 16: Condensed Consolidated Statement of Changes in Equity
Table of Contents Condensed Consolidated Statement of Changes in Equity Capital redemption Ordinary shares reserve Reserves Total Equity £m £m £m £m Balance at 31 March 2013 (audited) 1,501 167 1,871 3,539 Income for the period — — 1,430 1,430 Other comprehensive income for the period — — 585 585 To
Slide 17: Condensed Consolidated Cash Flow Statement
Table of Contents Condensed Consolidated Cash Flow Statement For the three months ended 31 December 2013 (unaudited) Three months ended Three months ended 31 December 2013 31 December 2012 (unaudited) (unaudited) £m £m Cash flows from operating activities Net income attributable to shareholders 619
Slide 18: Condensed Consolidated Cash Flow Statement (continued)
Table of Contents Condensed Consolidated Cash Flow Statement (continued) For the three months ended 31 December 2013 (unaudited) Three months ended Three months ended 31 December 2013 31 December 2012 (unaudited) (unaudited) £m £m Cash flows from financing activities Finance expenses and fees paid (
Slide 19: Condensed Consolidated Cash Flow Statement (nine months)
Table of Contents Condensed Consolidated Cash Flow Statement (continued) For the nine months ended 31 December 2013 (unaudited) Nine months ended Nine months ended 31 December 2013 31 December 2012 (unaudited) (unaudited) £m £m Cash flows from operating activities Net income attributable to sharehol
Slide 20: Condensed Consolidated Cash Flow Statement (continued)
Table of Contents Condensed Consolidated Cash Flow Statement (continued) For the nine months ended 31 December 2013 (unaudited) Nine months ended Nine months ended 31 December 2013 31 December 2012 (unaudited) (unaudited) £m £m Cash flows from financing activities Finance expenses and fees paid (135
Slide 21: Notes: Accounting policies
Table of Contents Notes (forming part of the condensed interim financial statements) 1 Accounting policies Basis of preparation The information for the nine months ended 31 December 2013 is unaudited and does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The
Slide 22: Notes: Research and development; Foreign exchange
Table of Contents Notes (continued) 2 Research and development Three months Three months Nine months Nine months ended ended ended ended 31 December 31 December 31 December 31 December 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) £m £m £m £m Total R&D costs 326 275 939 806 R&D
Slide 23: Notes: Finance income and expense
Table of Contents Notes (continued) 4 Finance income and expense Recognised in net income Three months Three months Nine months Nine months ended ended ended ended 31 December 31 December 31 December 31 December 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) £m £m £m £m Finance
Slide 24: Notes: Other financial assets, inventories, taxation
Table of Contents Notes (continued) 6 Other financial assets—current 31 December 2013 31 March 2013 (unaudited) (audited) £m £m Advances and other receivables recoverable in cash 8 24 Derivative financial instruments 360 31 Restricted cash 67 110 Other 11 11 446 176 7 Inventories 31 December 2013 31
Slide 25: Notes: Capital expenditure, other financial liabilities, provisions
Table of Contents Notes (continued) 10 Capital expenditure Capital expenditure in the period was £894 million (9 month period to 31 December 2012: £691 million) on fixed assets and £913 million (9 month period to 31 December 2012: £608 million) was capitalised as intangible engineering assets (exclu
Slide 26: Notes: Provisions (continued)
Table of Contents Notes (continued) 12 Provisions (continued) Product warranty 31 December 2013 31 March 2013 (unaudited) (audited) £m £m Opening balance 742 569 Provision made during the period 370 462 Provision used during the period (321) (287) Impact of discounting (1) (2) Closing balance 790 74
Slide 27: Notes: Provisions (continued)
Table of Contents Notes (continued) 12 Provisions (continued) Product warranty provision The group offers warranty cover in respect of manufacturing defects, which become apparent within a year and up to five years after purchase, dependent on the market in which the purchase occurred. Legal and pro
Slide 28: Notes: Interest bearing loans and borrowings
Table of Contents Notes (continued) 14 Interest bearing loans and borrowings 31 December 2013 31 March 2013 (unaudited) (audited) £m £m EURO MTF listed bond 2,190 1,839 Loans from banks 258 328 Finance lease liabilities 20 23 2,468 2,190 Less: Current bank loan (258) (328) Total short term borrowing
Slide 29: Notes: Other reserves
Table of Contents Notes (continued) 15 Other reserves The movement of reserves and accumulated deficit is as follows: Translation Hedging Pension Profit & loss Total reserve reserve reserve reserve reserves £m £m £m £m £m Balance at 1 April 2013 (383) (197) (800) 3,251 1,871 Net profit for the perio
Slide 30: Notes: Other reserves (continued); Dividends
Table of Contents Notes (continued) 15 Other reserves (continued) Translation Hedging Pension Profit & loss Total reserve reserve reserve reserve reserves £m £m £m £m £m Balance at 1 April 2012 (383) (20) (526) 2,186 1,257 Net profit for the year — — — 1,215 1,215 Movements in employee benefit plan
Slide 31: Notes: Employee benefits
Table of Contents Notes (continued) 17 Employee benefits Jaguar Land Rover Limited and Jaguar Land Rover Holdings Limited (previously Land Rover), have pension arrangements providing employees with defined benefits related to pay and service as set out in the rules of each fund. The following table
Slide 32: Notes: Employee benefits (continued)
Table of Contents Notes (continued) 17 Employee benefits (Continued) For the valuation at 31 December 2013 and 31 March 2013, the mortality assumptions used are the SAPS base table, in particular S1NxA tables and the Light table for members of the Jaguar Executive Pension Plan. A scaling factor of 1
Slide 33: Notes: Capital management
Table of Contents Notes (continued) 19 Capital management The Company’s objectives for managing capital are to create value for shareholders, to safeguard business continuity and support the growth of the Company. The Company determines the amount of capital required on the basis of annual operating
Slide 34: Notes: Related party transactions
Table of Contents Notes (continued) 20 Related party transactions The Company’s related parties principally consist of Tata Sons Limited, subsidiaries of Tata Sons Limited, associates and joint ventures of Tata Sons Limited (including Tata Motors Limited). The Company routinely enters into transacti
Slide 35: Jaguar Land Rover Automotive plc Abbey Road
Table of Contents Jaguar Land Rover Automotive pic Abbey Road 31
Slide 36: Jaguar Land Rover results for the quarter ended December 2013
Table of Contents Jaguar 10 February Land 2014 Rover results under IFRS for the quarter ended 31 December 2013
Slide 37: Disclaimer
Table of Contents tax laws andin Statements Disclaimer “forward-looking Company’s operations other this statements” presentation statutes include, andwithin incidental describing amongthe others, meaning factors. the objectives, economic of applicable conditions projections, securities affecting est
Slide 38: Participants
Table of Contents Kenneth Participants CFO Bennett 3Treasurer Jaguar Birgbauer Gregor Jaguar LandC. Land Rover Ramakrishnan Rover CFO Tata Motors
Slide 39: Agenda
Table of Contents Key topics Agenda Financial Looking 4Closing Q&A ahead performance Page 18 / other developments 5 15
Slide 40: Q3 FY14 financial highlights
Table of Contents Q3 FY14 Retail Revenue EBITDA PBT Free 5Cash cash of and volumes Ł842m, Ł5.3bn, Ł955m, financial flow of 113,000 upup Ł234m up deposits highlights Ł438m Ł1.5bn Ł422m for after on the Ł3.2bn on with Record the investment quarter, theprior EBITDA same and revenue year up undrawn quar
Slide 41: Key financial metrics - IFRS
Table of Contents Keymillions, Quarter (Ł Retail Revenues EBITDA Profit 6Free financial metrics—IFRS cash before volumes ended 955 %flow (IFRS) 17.9% unless tax 533 metrics 31 234 (‘000 842 5,328 December 422 stated) 14.0% (131) 404 units) –2,453 Q3 3,804 365 438 3.9 2013 113 91,546 323 1,925 ppt 1,
Slide 42: Very strong overall performance
Table of Contents Very Land Jaguar -EBITDA PBT 7PAT wholesale richer of of strong Rover retail Ł619m Ł842m, product geographic of volume overall Ł955m retail volume reflects mix upvolume Ł438m mix, performance increase (margin supported upan7k with effective up units due of 16k increased by 17.9%),
Slide 43: Quarterly retail volumes by carline
Table of Contents Quarterly Jaguar Up 3119 8Q 693 77 12 Range 28 New 10 11 413 Q3 35 2Evoque XF 20 XK XJ Up 33 Range Freelander 59% FY13 F-TYPE 15 Range 22% Rover – Q3 Q3 Rover retail Discovery Rover FY14 FY14 12volumes Defender vs Sport Q3 by Range FY13 carline Land RoverRover Sport– Q3 FY14 vs Q3
Slide 44: Quarterly retail volumes by geography
Table of Contents Quarterly 311 Europe 22 Land North 16 21 5146Asia 23 29 Up 18 15 220 UK 112,172 Q3 All China 88,658 312 4 1 214 20 19 13 10% 8% 33% 30% 46% 34% FY14 FY13 other All Pacific Rover America 25.6% 22.3% units other units markets UK Q3 retail Jaguar 13.6% FY14 markets volumes markets 15.
Slide 45: Consolidated income statement - IFRS
Table of Contents Consolidated Quarter Revenues Material 229 EBITDA Depreciation Income Profit 1. 2. Includes 42after before 772 statement tax ended cost 955 5,328 tax mark Ł(3)m expense 662 tax and of income 533 31 619 110 sales 3,804 842 to amortisation December 422 start-up 296 market (223) 404 s
Slide 46: Consolidated cash flow - IFRS
Table of Contents Strong Consolidated Quarter Working Cash Free Investment Net 11 change cash from flow cash ended capital flow from operating in flow cash fixed financial cash 31 (before operations changes to December flow—IFRS & and support activities cash financing) deposits intangible (50) equiv
Slide 47: Key financial indicators - IFRS
Table of Contents Strong Key (Ł Financial Cash Long Other Net Total 12 millions, cash financial and liquidity equity debt debt/equity term undrawn financing 795 cash financial deposits /(2,448) undrawn annualised unless 5,404 255 indicators—IFRS 4,643 equivalents committed structure 0.5 540 (1,886)
Slide 48: Refinancing
Table of Contents Refinancing In Alongside bonds Subject 13 December January being to market the 2014, tendered of 2013, January long-term the conditions, Jaguar company and bond debt the Land issue, early itissued isRover the Jaguar tender aintention new issued Land date Ł400m afor of Rover newthe
Slide 49: Agenda
Table of Contents Key topics Agenda Financial Looking Closing 14 Q&A ahead performance Page 18 / other developments 5 15
Slide 50: New products, new sites
Table of Contents New products, Launched Global Agreement (capacity 15 debut of new with 24,000 for new F-TYPE state thevehicles) sites long authorities coupé, wheelbase inthe Rio to most open de Autobiography Janiero, dynamically a new £240m Brazil Black capable, by manufacturing 2016 Range perform
Slide 51: Investment plan
Table of Contents Investment Free manufacturing In We Our 16 the FY15, plan are strong cash near targeting towe flow and balance continue spending expect capacity after medium funding sheet our investment toupdate increase capital term, and mostliquidity we of spending capital inour plan thecapital
Slide 52: Summary
Table of Contents Very Summary -In 17successfully continuing thestrong 2013/14 performance tolaunching fiscal build sales invest monitor generate year, ineconomic strong more the inmomentum continued the new new operating first F-TYPE and products 9focus months sales with cash coupe isthe trends and
Slide 53: Agenda
Table of Contents Key topics Agenda Financial Looking Closing 18 Q&A ahead performance Page 18 / other developments 5 15
Slide 54: Q&A
Table of Contents Q&A
Slide 55: Additional slides
Table of Contents Additional slides
Slide 56: Nine-month retail volumes by carline
Table of Contents Jaguar 56 38 36F-TYPE 25 Land Up 221 253 42 28 19 Range 79 33 36 11 9Defender month XJ 14 months XF 12 XK 2 15 New Evoque 40 47% 15% 33Rover Rover –Range retail 9FY13 months Discovery –909volumes Rover 9months months FY14 Sport Freelander by FY14 vs FY14 carline 9Range months vs 9
Slide 57: Nine-month retail volumes by geography
Table of Contents UK 52 Europe 748 Land North 56 41 Asia 17 310 60 55 74 14 Up 54 440 Russia) China 9309,535 All 259,165 848 14 4 6 months month 47 11 58 45 36 12 13 50 5 44 11% 5% 23% 34% 33% 22% other Pacific Rover America 23.7% 18.7% units retail FY14 FY13 markets UK 9 months Jaguar markets volum
Slide 58: Quarterly wholesale volumes by carline
Table of Contents Quarterly Jaguar Up 20 X 52Land 80 91313 415 Q3 12F 12 Evoque 5XK 1 Range 14 35% FY13 XJ F-Type Rover Freelander – Q3 Q3 Discovery Rover wholesale –FY14 FY14 Q333 Defender FY14 vs New volumes Q3vs Range FY13 Q3by FY13 Rover carline 96Sport Up 20% Range Rover Sport Range Rover 11
Slide 59: Quarterly wholesale volumes by geography
Table of Contents Quarterly UK 311 Europe Land North 22 17 6145Asia 23 29 Up 18 16 220 116,357 Q3 All Russia) China 94,828 313 5 6 4 1 223 20 18 14 13% 3% 24% 22% 45% 30% FY14 FY13 Eur other Pacific Rover America 24.8% 21.1% units China 19.7% 23.5% units markets UK Q3 wholesale Jaguar FY14 markets N
Slide 60: Nine-month wholesale volumes by carline
Table of Contents Jaguar 258 37 314 33 23 Land Up 41 35 17 89 32 40 911month F-Type 10 months 12 XK XJ XF 9 Range Evoque Freelander 58% 15% Rover – 251 wholesale 9FY13 Rover months Discovery –219 9379months 82 Defender 33 months FY14 volumes NewFY14 vs Range FY14 9bymonths vscarline Rover 9 months F
Slide 61: Nine-month wholesale volumes by geography
Table of Contents UK 51 34 Europe 58 649 Land North 53 37 Asia 16 310 14 50 60 75 Up 55 441 Russia) China 9308,908 All 255,722 12 8 14 4 6 months month 43 55 51 46 39 12 13 5 45 49 20% 6% 16% 33% 36% 23% other Pacific Rover America 24.2% 18.9% units wholesale FY14 FY13 markets UK 9 months Jaguar mar
Slide 62: Product and other investment
Table of Contents Product Key Quarter R&D Capitalised Expensed Investment 462 Total 27 267 financial R&D product expense ended and 195 55in expense 271 other 1,064 46 and indicators—IFRS tangible 31229 9 December other investment 167 655 326 42144 and 772 388 investment 275 other 98 662 intangible 9