Tata Motors Limited · NSE:TMCV
Tata Motors — Q3 FY18 Earnings Presentation
30 slides from Tata Motors's earnings presentation, Feb 6, 2018
Slide 1: Results for the Three and Nine Months Ended 31 December 2017
JAGUAR LAND ROVER 6 February 2018 RESULTS FOR THE THREE AND NINE MONTHS ENDED 31 DECEMBER 2017 AS INCLUDED IN TATA MOTORS GROUP PRESENTATION Kenneth Gregor, CFO
Slide 2: Disclaimer
DISCLAIMER 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 applicable securities
Slide 3: Agenda
AGENDA Business highlights Financial performance for the quarter and year to date JLR strategic priorities Looking ahead Closing Q&A
Slide 4: Business highlights, new products and other developments
Business highlights 4 new products and other developments 18MY Range Rover Sport with PHEV models now on sale 18MY Range Rover with PHEV models now on sale E-PACE on sale in the UK and Europe since November 2017 Long wheel base XEL on sale from our China JV since December 2017 Continuing to expand p
Slide 5: Q3 revenue up 4%, PBT £63m lower
Q3 revenue up 4%, PBT £63m lower 17MY run-out, higher D&A; exceptional gain in FY17 9 Months Q3 Revenue PBT EBITDA Higher wholesales (2,829 units) led by Velar, offset by RR and RR Sport model year changeover Q3 FY17 included £85m Tianjin recovery Higher D&A from investment in new models, technology
Slide 6: Q3 retails 154.4k, up 3.5%, by region
- Retail volumes include sales from Chery Jaguar Land Rover – Q3 FY18 23,388 units, Q3 FY17 19,395 units Wholesale volumes exclude sales from Chery Jaguar Land Rover –Q3 FY18 25,328 units, Q3 FY17 21,335 units North America (2.4)% UK (8.5)% Europe (3.4)% China 14.6% Overseas 18.2% YoY Q3 retails 154
Slide 7: Q3 retails 154.4k, up 3.5%; Velar and Discovery ramp up
Q3 retails 154.4k, up 3.5%Velar and Discovery ramp up, RR and RR Sport 17MY run-out Wholesales Units 6.2 5.2 2.2 1.8 16.8 2.4 18.0 13.8 19.5 20.3 16.1 11.5 YoY (6.3) 0.0 (0.5) 1.8 (4.2) (0.4) (4.7) 8.1 (5.4) 20.3 (3.9) (1.9) Retail Volumes include sales from Chery Jaguar Land Rover –Q3 FY18 23,388 u
Slide 8: Q3 PBT down £63m
-8- 255 192 86 40 102 (73) (178) (40) (25) 25 75 125 175 225 275 325 375 PBT Q3 FY17 Volume, mix & market Net pricing Contribution costs Structural costs FX Other PBT Q3 FY18 Q3 PBT down £63m17MY run-out, higher D&A; exceptional gain in FY17 Q3 FY17 5.6% Q3 FY18 6.9% of revenue 3.9% 0.0% 0.4% (2.7)%
Slide 9: Q3 free cash flow £(660)m
-9- 192 730 (661) 573 (35) (1,070) (321) (500) (300) (100) 100 300 500 700 900 PBT Q3 FY18 Non-cash and other Tax Cash profit after tax Investment Working capital Free cash flow Q3 free cash flow £(660)m Ongoing investment, launch-related working capital outflow * Free cash flow defined as net cash
Slide 10: Q3 investment spending 17% of revenue
-10- Q3 investment spending 17% of revenue New models, capacity, technology to grow +23 (3) +20 +124 +144 YoY 6.4% 1.5% 7.8% 9.1% 17.0% IFRS, £m 495 1,070 402 93 575 0 200 400 600 800 1,000 1,200 Capitalised R&D Expensed R&D Total R&D Capital Investment* Total Investment * Primarily plant, property
Slide 11: Debt maturity profile and liquidity
-11- 519 370 370 300 400 770 576 370 3,675 142 3,840 3,714 3,817 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Q3 FY17 Q3 FY18 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY27 Total Debt Bonds Other debt: Discounted receivables, finance leases and deferred fees Total cash £3.7b cash, £1.9b undr
Slide 12: Q3 YoY favourable FX £100m
- 12 - Q3 YoY favourable FX £100m Favourable FX revaluation, lower hedge reserve Q3 FY17 Q2 FY18 Q3 FY18 Current Portion (1,516) (793) (705) Non-Current Portion (1,456) (299) (192) Total (2,972) (1,092) (897) Hedge Reserve (Pre-Tax) Q3 FY17 Q2 FY18 Q3 FY18 YoY Change QoQ Change GBP:USD 1.229 1.340 1
Slide 13: JLR Strategy
JLR STRATEGY
Slide 14: Consistent strategy: investing to drive sustainable profitable growth
-14- Consistent strategyInvesting to drive sustainable profitable growth Customer First Environmental Innovation Global Growth Transformed Cost Structure Engaged Passionate People Integrity, Pioneering, Excellence, Unity and Responsibility Our most valuable asset is our people, nothing is more impor
Slide 15: Responding to challenging environment
-15- Responding to challenging environment Geopolitical and economic environment, including Brexit Electrification, diesel uncertainty and emissions compliance Market and competitive forces -higher incentives Driver assistance, connectivity and mobilitytrends High capital investment requirements Tar
Slide 16: Recent trends in industry volumes
-16- 542 2,349 4,418 2,913 7,607 474 2,466 4,333 3,066 7,595 UK Europe US Overseas China Q3 FY17 Q3 FY18 Recent trends in industry volumes (12.6)% 5.0% (1.9)% 5.3% (0.1)% -Diesel uncertainty and UK taxation -Brexit uncertainty -Market cyclicality Market cyclicality Diesel uncertainty Units 000s The
Slide 17: Premium car CAGR 2.4% to 7.2m by FY23
-17- Premium car CAGR 2.4% to 7.2m by FY23Led by China and Overseas; UK, NA weaker 1.8 2.4 2.0 2.0 1.2 1.3 0.9 1.1 0.4 0.4 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Source: IHS Automotive November 2017, JLR Segments China North America Europe Overseas UK CAGR Units mils 6.2 7.2 +2.4% +4.4% +0.5% +1.5% +4.3
Slide 18: Growing JLR model range to meet demand
-18- Growing JLR model range to meet demand XJ LUXURY XF SPORTBRAKE XE F-TYPE Coupe SPORTS F-TYPE CONVERTIBLE F-PACE LIFESTYLE ALL NEW DISCOVERY LUXURY –RANGE ROVER LEISURE -DISCOVERY DISCOVERY SPORT XFL Range Rover XE JAGUAR XF WINNER GOLDEN STEERING WHEEL AWARD 2016 BEST SALOON CAR JAGUAR F-PACE W
Slide 19: ACES transformation underway
-19- ACES transformation underway InMotion Ventures invests in the future of transport and mobility £25m Lyft investment Investment in technology and infrastructure to support higher levels of connectivity I-PACE battery electric vehicle on sale 2018 Range Rover and Range Rover Sport Plug-in hybrids
Slide 20: Electrification roadmap
Electrification roadmap Investment in recent years starting to deliver Present from 2020 New and refreshed vehicles with electric options All JLR vehicles offer electric options First plug-in hybrids now offered in 18MY Plug-in hybrids Range Rover and Range Rover Sport Mild hybrids E-TYPE Zero revea
Slide 21: Looking ahead
Looking ahead Continuing to invest to drive profitable growth MORE CHALLENGING GLOBAL ENVIRONMENT JAGUAR LAND ROVER OUTLOOK • Cyclically weaker markets in the US and UK • Continue to invest (£4b+ in FY18) in new products, technology and capacity to drive profitable growth • More competitive pricing
Slide 22: Thank You
Thank You Kenneth Gregor Jaguar Land Rover CFO, Jaguar Land Rover Abbey Road, Whitley, Coventry CV3 4LF Bennett Birgbauer aguarlandrover.com Treasurer, Jaguar Land Rover Jaguar Land Rover Investor Relations investor@jaguarlandrover.com Tata Motors Investor Relations Ir_tml@tatamotors.com
Slide 23: Additional Slides
ADDITIONAL SLIDES
Slide 24: Q3 revenue up 4%, PBT £63m lower
Q3 revenue up 4%, PBT £63m lower 17MY run-out, higher D&A; exceptional gain in FY17 Q3 FY18 Q3 FY17 Change 9M FY18 9M FY17 Change 40 32 43 35 Retail volumes (‘000 units) 154.4 149.3 5.1 441.6 424.5 17.1 Wholesale volumes (‘000 units) 133.7 130.9 2.8 383.0 375.9 7.1 Revenues 6,310 6,048 262 18,231 17
Slide 25: Q3 revenue up 4%, PBT £63m lower (income statement)
Q3 revenue up 4%, PBT £63m lower 17MY run-out, higher D&A; exceptional gain in FY17 Q3 FY18 Q3 FY17 Change 9M FY 18 9M FY17 Change 40 32 43 35 Revenues 6,310 6,048 262 18,231 17,071 1,160 Material and other cost of sales (4,033) (3,836) (197) (11,599) (10,564) (1,035) Employee costs (680) (648) (32)
Slide 26: 9M FY18 retails 441,600 up 4.0% YoY
9m FY18 retails 441,600 up 4.0% YoY China, Overseas, North America up; UK & Europe lower Retail Volumes include sales from Chery Jaguar Land Rover – 9M FY18 65,425 units, 9M FY17 46,926 Wholesale volumes exclude sales from Chery Jaguar Land Rover – 9M FY18 67,764 units, 9M FY17 49,936 units - 26 -
Slide 27: 9M FY18 retails by model
9m FY18 retails 441,600 up 4.0% YoY Led by Velar and F-PACE; RR Sport 17MY run-out Retail Volumes include sales from Chery Jaguar Land Rover – 9M FY18 65,425 units, 9M FY17 46,926 Wholesale volumes exclude sales from Chery Jaguar Land Rover – 9M FY18 67,764 units, 9M FY17 49,936 units Defender/Freel
Slide 28: China joint venture XEL now on sale
China joint venture XEL now on sale
Slide 29: Q3 YoY favourable FX £100m
Q3 YoY favourable FX £100m Favourable FX revaluation, lower hedge reserve 0 Q3 FY18 Q2 FY18 Change Q3 FY17 Change 40 39 32 Operational exchange n/a n/a (65) n/a (134) Realised FX hedges and other (304) (343) 39 (455) 151 Revaluation of current assets and liabilities 4 (11) 15 (2) 6 Total FX impactin
Slide 30: Jaguar Land Rover Automotive plc Interim Report
Jaguar Land Rover Automotive plc Interim Report For the three and nine month period ended 31 December 2017 Company registered number: 06477691 Contents Management’s discussion and analysis of financial condition and results of operations Key metrics/highlights for Q3 FY18 results Market environment