Tata Motors Limited · NSE:TMCV
Tata Motors — Q2 FY18 Earnings Presentation
26 slides from Tata Motors's earnings presentation, Nov 13, 2017
Slide 1: Jaguar Land Rover Investor Call: Results for Three and Six Months Ended 30 September 2017
JAGUAR LAND ROVER INVESTOR CALL RESULTS FOR THE THREE AND SIX MONTHS ENDED 30 SEPTEMBER 2017 Kenneth Gregor, CFO 9th NOVEMBER 2017
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 Financial performance for the quarter and year to date 4 New products 10 JLR strategic priorities 11 Looking ahead 13 Closing Q&A - 3 -
Slide 4: JLR Model Range Continues to Grow
JLR MODEL RANGE CONTINUES TO GROW Q2 FY18 150k UP 5.1%, LED BY THE NEW VELAR LUXURY SPORTS LIFESTYLE LUXURY – RANGE ROVER LEISURE—DISCOVERY DUAL PURPOSE—DEFENDER XJ F-TYPE F-PACE RANGE ROVER ALL NEW DISCOVERY LAND ROVER DEFENDER Replacement in development XF SPORTBRAKE F-TYPE CONVERTIBLE RANGE ROVER
Slide 5: Q2 Profits Up 38% on Higher Sales
Q2 PROFITS UP 38% ON HIGHER SALES FAVOURABLE VOLUME, MIX, FX/COMMODITY REVALUATION Revenue (£m) PBT (£m) EBITDA (%) 5,668 6,322 385 10.9% 11.8% Q2 280 EBIT: EBIT: 4.2% 5.2% Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 11,921 11,023 980 1 679 11.7% Months 10.0% 6 EBIT: EBIT: 5.1% 3.3% 6M FY17 6M F
Slide 6: Q2 FY18 Retails 149,690 Up 5.1% YoY
Q2 FY18 RETAILS 149,690 UP 5.1% YOY CHINA AND NORTH AMERICA UP, UK AND EUROPE LOWER Units in ‘000 North UK Europe China Overseas America YoY +5.1% (3.6)% (4.1)% +27.4% (0.1)% 37.6 31.8 29.9 28.9 21.6 21.2% 19.9% 14.4% 19.3% 25.1% Volumes include sales from Chery Jaguar Land Rover – Q2 FY18 21,728 un
Slide 7: October Retails 46,418 Up 0.2% YoY
OCTOBER RETAILS 46,418 UP 0.2% YOY CHINA AND OVERSEAS UP, UK DOWN WITH INDUSTRY Units in ‘000 North UK Europe China Overseas America YoY (3.2)% (18.3)% (3.3)% +12.4% +15.7% Volumes exclude sales from Chery Jaguar Land Rover – Oct FY18 7,085 units, Oct FY17 5,904 units - 7 -
Slide 8: Year on Year Profit Walk
YEAR ON YEAR PROFIT WALK FAVOURABLE VOLUME, MIX, FX/COMMODITY REVALUATION £ millions Wholesales up Reflects launch of 7,100 led by Velar new Discovery and Velar 148 (69) 30 (68) 64 385 280 0 PBT Q2 FY17 Volume, mix Net Material & operating D&A FX & commodities PBT Q2 FY18 & market pricing costs EBIT
Slide 9: Q2 Free Cash Flow
Q2 FREE CASH FLOW £ millions Total cash 3,923 Total debt 3,381 464 (71) Net cash/(debt) 542 778 (1,033) Undrawn credit facilities 1,885 385 230 (25) PBT Q2 FY18 Non-cash and other Tax Cash profit after tax Investment Working Free cash flow capital * Free cash flow defined as net cash generated from
Slide 10: Exciting New Products and More to Come
EXCITING NEW PRODUCTS AND MORE TO COME… Range Rover Velar (July 2017) XF Sportbrake (September 2017) Long wheel base XEL (China JV) E-PACE (this winter) 18MY Range Rover Sport with PHEV 18MY Range Rover with PHEV models models (this winter) (this winter) - 10 -
Slide 11: JLR Strategic Priorities — ACES
JLR STRATEGIC PRIORITIES — ACES AUTONOMOUS CONNECTED ELECTRIC SHARED • JLR vehicles currently • Investment in technology • I-PACE Battery Electric • InMotion Ventures include level 2 features and infrastructure to Vehicle on sale 2018 invests in the future of support higher levels of transport and m
Slide 12: Electrification Strategy
ELECTRIFICATION STRATEGY INVESTMENT IN RECENT YEARS STARTING TO DELIVER from 2018 from 2020 • New and refreshed vehicles with electric options • All JLR vehicles offer electric options • First plug-in hybrids offered in 18MY Range • Mild hybrids and/or Rover and Range Rover Sport • Plug-in hybrids o
Slide 13: Looking Ahead: Continuing to Invest to Drive Profitable Growth
LOOKING AHEAD CONTINUING TO INVEST TO DRIVE PROFITABLE GROWTH • JLR’s strategy is to achieve sustainable profitable growth by investing proportionally more in new products, technology and manufacturing capacity. • FY18 investment spending is expected to be in the region of £4 – 4.35b • JLR’s plannin
Slide 14: Thank You
Thank You Kenneth Gregor Jaguar Land Rover CFO, Jaguar Land Rover Abbey Road, Whitley, Coventry CV3 4LF Bennett Birgbauer Treasurer, Jaguar Land Rover Jaguarlandrover.com Jaguar Land Rover Investor Relations investor@jaguarlandrover.com Tata Motors Investor Relations Ir_tml@tatamotors.com - 14 -
Slide 15: Additional Slides
Ja alt ADDITIONAL SLIDES
Slide 16: Key Financial Metrics
KEY FINANCIAL METRICS REVENUE, PROFITS, MARGINS UP, CASH FLOW BREAK-EVEN (£ millions) Q2 FY18 Q2 FY17 Change 6M FY18 6M FY17 Change Retail volumes (‘000 units) 149.7 142.5 7.2 287.2 275.2 12.0 Wholesale volumes (‘000 units) 131.3 124.2 7.1 249.3 245.0 4.3 Revenues 6,322 5,668 654 11,921 11,023 898 E
Slide 17: Income Statement
INCOME STATEMENT Q2 REVENUE, PROFITS AND MARGINS UP (£ millions) Q2 FY18 Q2 FY17 Change 6M FY18 6M FY17 Change Revenues 6,322 5,668 654 11,921 11,023 898 Material and other cost of sales (4,001) (3,487) (514) (7,566) (6,728) (838) Employee costs (662) (585) (77) (1,318) (1,190) (128) Other (expense)
Slide 18: Q2 Free Cash Flow About Breakeven
Q2 FREE CASH FLOW ABOUT BREAKEVEN YEAR TO DATE REFLECTS Q1 SEASONALITY (£ millions) Q2 FY18 Q2 FY17 Change 6M FY18 6M FY17 Change PBT 385 280 105 980 679 301 Depreciation and amortisation 478 410 68 928 798 130 Tax paid (71) (41) (30) (175) (100) (75) Other (14) (14) — (535) (71) (464) Cash profit a
Slide 19: Strong Liquidity
STRONG LIQUIDITY £3.9B CASH & £1.9B UNDRAWN RCF £ millions Total cash Debt maturity profile 3,837 3,923 3,381 3,500 68 Cash and debt balances at 30 September exclude $500m 10 year bond issued in October 3,313 773 522 400 572 373 373 300 Q2 FY17 Q2 FY18 CY18 CY19 CY20 CY21 CY22 CY23 CY24 Total Debt B
Slide 20: China Joint Venture Increased Sales and Profits
CHINA JOINT VENTURE INCREASED SALES AND PROFITS Units in 000’s £ millions Current models Upcoming models JLR share of profit Retail volumes 61 22 XF L E-PACE 13 33 Discovery Sport XEL Evoque Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Note: Includes local market incentive of £31m in Q1 FY18 and - 20—£6m in Q1 F
Slide 21: Q2 FY18 Retails by Model
Q2 FY18 RETAILS 149,690 UP 5.1% YOY VELAR OFF TO A STRONG START Units in ‘000 30.4 24.4 18.3 18.6 12.3 13.0 10.3 8.8 8.7 2.5 2.4 0.0 * XE XF XJ F-PACE F-TYPE Discovery Discovery RR Evoque RR Velar RR Sport Range Rover Discontinued Sport YoY (2.3) 2.3 (0.2) 1.1 (0.2) 2.1 (0.9) (1.6) 8.7 (1.6) 0.5 (0.
Slide 22: Q2 FY18 Wholesales by Model
Q2 FY18 WHOLESALES 131,334 UP 5.8% YOY LED BY VELAR, DISCOVERY AND RANGE ROVER Units in ‘000 17.1 17.6 17.5 16.4 16.9 13.6 12.2 9.4 5.4 3.0 2.1 0.0 * XE XF XJ F-PACE F-TYPE Discovery Discovery RR Evoque RR Velar RR Sport Range Rover Discontinued Sport YoY (2.7) (1.3) 0.2 (1.4) 0.4 (0.6) 1.8 (3.6) 16
Slide 23: Q2 FY18 Wholesales by Region
Q2 FY18 WHOLESALES 131,334 UP 5.8% YOY UK, CHINA AND OVERSEAS UP Units in ‘000 North 28.6 34.6 29.0 17.2 21.9 21.8% 26.4% 22.1% 13.1% 16.7% UK Europe China Overseas America YoY (8.0)% +19.8% (0.7)% +19.0% +6.7% Volumes exclude sales from Chery Jaguar Land Rover – Q2 FY18 21,876 units, Q2 FY17 15,043
Slide 24: Product and Other Investment
PRODUCT AND OTHER INVESTMENT CAPITAL EXPENDITURE TO GROW THE BUSINESS (£ millions) Q2 FY18 Q2 FY17 Change 6M FY18 6M FY17 Change R&D expense Capitalised 410 371 39 765 693 72 Expensed 83 88 (5) 177 173 4 Total R&D expense 493 459 34 942 866 76 Investment in tangible and other intangible assets 540 3
Slide 25: FX and Commodities
FX AND COMMODITIES COMMODITY HEDGE GAINS & REDUCED FX HEDGE LOSSES (£ millions) Q2 FY18 Q1 FY18 Change Q2 FY17 Change Operational exchange n/a n/a (55) n/a 48 Realised FX hedges and other (343) (454) 111 (276) (67) Revaluation of current assets and liabilities (11) (25) 14 (58) 47 Total FX impacting
Slide 26: Jaguar Land Rover Automotive plc Interim Report
Jaguar Land Rover Automotive plc Interim Report For the three and six month period ended 30 September 2017 Company registered number: 06477691 Contents Management’s discussion and analysis of financial condition and results of operations Key metrics/highlights for Q2 FY18 results Market environment