Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Debt Investor Presentation (October 2011)
45 slides from Tata Motors Passenger Vehicles's debt investor presentation, October 2011
Slide 1: USD 500,000,000 Syndicated Term Loan Facility Road show Presentation
USD 500,000,000 Syndicated Term Loan Facility Road show Presentation September/October 2011 INVESTOR RELATIONS 1
Slide 2: Disclaimer
Disclaimer • Statements in this presentation describing the objectives, projections, estimates and expectations of the Company i.e. Tata Motors Ltd and its direct and indirect subsidiaries and its associates may be “forward looking statements” within the meaning of applicable securities laws and reg
Slide 3: Introduction to the Tata Group
Introduction to the Tata Group • India’s largest Business group • Diverse businesses in 7 business sectors, more than 90 operating companies, • Operations in over 80 countries • Group revenue FY 2011 - $83.5 billion (around Rs380,663 crore) • International income 57.8% • Largest employer in the priv
Slide 4: Tata Motors Group of Companies
Tata Motors Group of Companies Tata Motors is India’s largest automobile company by revenue. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Spain. Amongst them is Jaguar Land Rover, the business comprising the two iconic Br
Slide 5: Tata Motors
Tata Motors • India’s Largest Automobile Company • 3rd Largest Bus Manufacturer in Medium & Large Buses in The World (>8t) • 4th Largest Truck Manufacturer in The World (>8t) • Largest Portfolio Of Products (Light, Medium And Heavy Trucks, Buses TATA MOTORS & Coaches, Passenger Cars & Uvs) • Over 1,
Slide 6: FY 2011 Consolidated Global sales volume crosses 1 million
FY 2011 Consolidated Global sales volume crosses 1 million Turnover crosses Rs 1 lakh crs, PBT crosses Rs 10,000 crs FY11 FY10 % FY11 FY10 Particulars Rs Crores Rs Crores change USD Mio USD Mio Net Revenue 123,133 92,519 33% 27,038 20,496 EBITDA 17,780 8,614 106% 3,904 1,908 EBITDA margin 14.4% 9.3%
Slide 7: Supported by robust growth in the India Business
Supported by robust growth in the India Business Sales volume over 8 lakhs; Turnover ~ Rs 48,000 crs and PBT crosses Rs 2,000 crs FY11 FY10 FY11 FY10 Particulars Rs Crores Rs Crores % change USD Mio USD Mio Net Revenue 48,040 35,593 35% 10,549 7,885 EBITDA 4,771 4,178 14% 1,048 926 EBITDA margin 9.9
Slide 8: And significant improvement in Jaguar Land Rover
And significant improvement in Jaguar Land Rover with improved market conditions, product mix, market mix, favorable exchange rates and impact of margin improvement measures Sales nos. over 240,000; Turnover ~ GBP 10 billion and PBT crosses GBP 1 billion GBP Million FY11 FY10 % change Net Revenue 9,
Slide 9: Healthier financial profile with focused deleveraging
Healthier financial profile with focused deleveraging Consolidated Balance Sheet Mar-11 Mar-10 Sources of funds In USD Mio ¾Successfully completed QIP issue of shares aggregating USD 750 mn Shareholder Funds 4,210 1,818 Minority Interest 54 47 ¾FCCNs of ~ USD 326 mn equivalent Foreign Currency Monet
Slide 10: Indian Automobile Industry – an overview
Indian Automobile Industry – an overview INVESTOR RELATIONS 10
Slide 11: India Growth …… a sustainable trend
India Growth …… a sustainable trend Urbanization Growth in working GDP growth and Growth in road population rise in disposable infrastructure ‘Urbanization of Mind’ 1400 70% incomes Crisil estimates that High between 2010 and 2014, the total investment potential Medium 60% in the roads sector - Incr
Slide 12: The Indian Automobile sector at a new global paradigm
The Indian Automobile sector at a new global paradigm Protection Liberalization Globalization • Closed economy (till 80s) • Mfg licensed, QR on import • Delicensing (93), QR removal • Removal of • High duties & sales tax • Entry of foreign players (OEM) most import • Technical collaborations • PSUs,
Slide 13: Tata Motors
Tata Motors INVESTOR RELATIONS 13
Slide 14: Tata Motors - Domestic Business
Tata Motors - Domestic Business Commercial Vehicles Passenger Vehicles • Widest portfolio of automotive products, • Range comprises of compact cars-Indica and the ranging from sub — 1 ton to 49 ton gross Indica Vista, the mid-sized cars – Indigo and the vehicle weight (GVW) trucks (including pickup
Slide 15: Business Strategy - Commercial Vehicles
Business Strategy - Commercial Vehicles Powerful combination of product, brand, cost advantage Maintain and grow leadership in India through continuous evaluation of product range Strong combination of new platforms/ products and existing products Improve value proposition for existing product
Slide 16: Continue transformation & strengthening of product portfolio
Continue transformation & strengthening of product portfolio Wide Range of Products SCVs (c.1 ton) Ace (1 ton) Super Ace (1.2 ton) Ace Zip (0.5 ton) Pickups (1-1.5 ton) RX Pickup Xenon Pickup LCV/ ICV Expected FY2012 (2.25-7.5 onwards ton) 407 1109 World LCV World ICV MHCVs (15-42 ton) LP and Novus
Slide 17: Continue transformation & strengthening of product portfolio
Continue transformation & strengthening of product portfolio Wide Range of Products SCVs (3-6 seats) Tata Magic Magic Iris UVs (7-12 seats) Winger Venture Winger Platinum Buses (16-54 seats) Globus Starbus Hispano Marcopolo Buses INVESTOR RELATIONS 17
Slide 18: Business strategy - Passenger Vehicles
Business strategy - Passenger Vehicles Fully leverage product portfolio through a focused sales distribution and marketing function Leverage young product portfolio to regain market position Expand addressable market through improved value proposition eg. Fuel efficient Powertrain options Seed
Slide 19: Relatively Young Product Portfolio
Transformation & strengthening of the product portfolio Relatively Young Product Portfolio Nano Venture – launched in Sumo Grande Fiat Linea Indigo Manza Aria selective states commencing Jan 2011 Xenon XT Upcoming Q4FY08 Q2FY09 Q4FY09 Q1FY10 Q3FY11 launch… New Safari Refresh Indica Vista Fiat Punto
Slide 20: Tata Nano
Tata Nano • Space • Comfortable seating for 4 persons • Mono volume design • Power train at rear • Fuel efficient engine • All Aluminum, 2 cylinder 623 cc, 33 PS MPFI engine • Designed for maximizing performance per unit of energy • Exceeds current Safety requirements • Crumple zones, intrusion resi
Slide 21: Awards during FY2011 and more ....
Awards during FY2011 “CV maker of the “Best New Product “Viewer’s Choice Car Year” Segment” of the Year” “Good Design “MPV of the Year” Award” Tata Motors Nano Aria and more …. INVESTOR RELATIONS 21
Slide 22: Management & Corporate Governance
Management & Corporate Governance The Board comprising of 12 Directors and the Board Committees provide leadership and guidance on corporate governance, business strategies, growth plans, the identification of risks, mitigation strategies, entry into new businesses, products, capital expenditure and
Slide 23: Corporate Social Responsibility - Commitments to the Society
Corporate Social Responsibility - Commitments to the Society Health • Health care provided to nearly 300,000 people annually through various projects • Sanitation drives with participation of over 40,000 villagers in over 50 villages • Amrutdhara Project to provide safe water to 100 villages in the
Slide 24: Our Strength: Our Employees
Our Strength: Our Employees Environment pledge being taken by Training program on ISO 14001 at employees in Jamshedpur plant shop floors at Pantnagar Plant Employees from Thane playing Tree plantation by employees in “Trees & Pipes”, a game on Dehradun AO environment friendly & unfriendly practices
Slide 25: Our Concern: Our Community
Our Concern: Our Community Sit & draw competition for children at Jamshedpur Employee volunteers planting trees in Nargismau Primary School, Lucknow Vermi compost farm inaugurated in Lucknow plant which will convert canteen waste to manure Saplings been planted by villagers in Migratory birds around
Slide 26: Way Forward
Way Forward •Strong growth in demand continues •Freight rates appear healthy with demand in haulage segment being robust •70% of nation wide road projects are yet to be completed. This provides huge growth potential for CV Industry •Supply constraints continue but being addressed. •Commodity prices
Slide 27: Jaguar Land Rover
Jaguar Land Rover INVESTOR RELATIONS 27
Slide 28: Jaguar Land Rover
Jaguar Land Rover Luxury / all-terrain premium passenger vehicles with globally recognized iconic brands Consolidated Consolidated Consolidated FY 2011 retail volume: FY 2011 revenues: FY 2011 EBITDA: 240,905 units £9.9bn £1.5bn Premium sports saloons and sports cars Type Premium all-terrain vehicle
Slide 29: Jaguar and Land Rover – global growth opportunities for British iconic brands
Jaguar and Land Rover – global growth opportunities for British iconic brands Seize opportunity for JLR to deliver profitable growth from growing premium segments Capitalise on strong, globally recognised brands Invest substantially in new products and technologies - Deliver a combination of e
Slide 30: Jaguar Land Rover
Jaguar Land Rover 2011 model year Jaguar products The next 3 year planning cycle to witness several new models and refreshments for Jaguar and Land Rover 2011 Model year Land Rover products INVESTOR RELATIONS 30
Slide 31: JLR award-winning cars in FY2011
JLR award-winning cars in FY2011 Two award-winning design teams led by accomplished designers Ian Callum and Gerry McGovern Jaguar and Land Rover cars continue to recognized for their design and performance, and have won a multitude of awards across categories JLR received over 80 awards from
Slide 32: 2011/12 Jaguar product actions
2011/12 Jaguar product actions Exciting new 2012MY developments XF XK XJ • Exterior and interior • Exterior and interior • Rear seat entertainment / freshening freshening enhancement • Introduction 2.2 Ltr Diesel • XKR-S – limited edition • Exclusive edition including stop start • Introduced 3 Ltr p
Slide 33: 2011/12 Land Rover product actions
2011/12 Land Rover product actions….. Launching the all-new Range Rover Evoque Range Rover – Autobiography Ultimate edition Range Rover Sport – minor refresh All new Range Rover Evoque – smallest and most fuel efficient Range Rover For launch in September 2011 Available in 3 / 5 door Discovery – 8 s
Slide 34: Other Key Subsidiaries
Other Key Subsidiaries INVESTOR RELATIONS 34
Slide 35: Tata Motors Finance
Tata Motors Finance FY11 FY10 FY10 FY10 Particulars Rs Crores Rs Crores % change USD mio USD Mio Disbursal (Nos) 164,262 148,015 11.0% 164,262 148,015 Net Revenue * 1,367 1,132 20.7% 300 251 Operating Income # 146 (5) NM 32 (1) Operating Margin 10.7% NA NM 10.7% NA PAT 127 44 187.8% 28 10 % of Reven
Slide 36: Tata Technologies
Tata Technologies FY11 FY10 FY11 FY10 Particulars Rs Crores Rs Crores % change USD Mio USD Mio Net Revenue * 1249 1070 16.7% 274 237 EBITDA * 187 126 48.3% 41 28 % of Revenues 15.0% 11.8% 320 bps 15.8% 11.8% Net Profit 139 91 52.8% 31 20 % of Revenues 11.1% 8.5% 260 bps 11.1% 8.5% * Excludes Other I
Slide 37: Tata Daewoo
Tata Daewoo FY11 FY10 FY11 FY10 Particulars Rs Crores Rs Crores % change USD Mio USD Mio Sales (Units) 8748 8769 -0.2% 8748 8769 Net Revenue * 2881 2729 5.6% 633 605 EBITDA * 187 192 -2.2% 41.2 42.5 % of Revenues 6.5% 7.0% (50) bps 6.5% 7.0% Net Profit 73 82 -10.6% 16 18 % of Revenues 2.5% 3.0% (50)
Slide 38: HV Axles Ltd HV Transmissions Ltd
HV Axles Ltd • Sales Revenue continued to increase on the back of FY11 FY10 FY11 FY10 growth in domestic Particulars Rs Crores Rs Crores % change USD Mio USD Mio CV market Net Revenue * 312 239 30.7% 69 53 • While overall cost EBITDA * 184 137 34.3% 41 30 pressures increased, % of Revenues 59.1% 57.
Slide 39: Credit Strengths
Credit Strengths INVESTOR RELATIONS 39
Slide 40: Credit Strengths
Credit Strengths • Strong India Business with growing exports Diversified global portfolio • Continued emphasis on growth markets by JLR (China, Russia, India and Brazil) • Tata Motors is India’s largest automobile company and has a global footprint. Its portfolio comprises light, medium and heavy t
Slide 41: Credit Strengths
Credit Strengths • Most respected brand in India, for trust and product value proposition Brands • Distinctive design, performance and build quality with strong brand loyalty • New product actions to supplement the Jaguar, Range Rover and Land Rover brands • Track record of innovation, with industry
Slide 42: Credit Strengths
Credit Strengths • The senior management have received managerial awards on Indian and global platforms in FY2011 Strong • Strong turnaround by JLR was supported by improved markets & the management Management response to challenges on the supply chain, prioritizing investments in products and maint
Slide 43: Update on Q1FY12 results
Update on Q1FY12 results Tata Motors Tata Motors JLR PLC Details Consolidated Standalone (GBP mn) (Rs crs) (Rs crs) 33,572 11,898 2,712 Net Revenue (27,056) (10,416) (2,262) EBITDA 4,462 999 408 13.3% 8.4% 15.1% EBITDA margin (14.6%) (11.3%) (15.4%) PBT 2,346 466 249 #2,000 401 219 PAT (1,989) (538)
Slide 44: Update on Q1FY12 results
Update on Q1FY12 results Tata Motors Tata Motors JLR PLC Details Consolidated Standalone (GBP mn) (USD Mio) (USD Mio) 7,511 2,662 2,712 Net Revenue (5,920) (2,279) (2,262) EBITDA 998 223 408 13.3% 8.4% 15.1% EBITDA margin (14.6%) (11.3%) (15.4%) PBT 525 104 249 #447 90 219 PAT (435) (87) (226) # Aft
Slide 45: Thank You
Thank You INVESTOR RELATIONS 45
Tata Motors — Debt Investor Presentation (October 2011) on 6ix