Tata Motors Limited · NSE:TMCV
Tata Motors — FY2017 Earnings Presentation
37 slides from Tata Motors's earnings presentation, May 23, 2017
Slide 1: Jaguar Land Rover Results for the Year and Quarter Ended 31 March 2017
JAGUAR LAND ROVER JAGUAR LAND ROVER RESULTS FOR THE YEAR AND QUARTER ENDED 31 MARCH 2017 23rd MAY 2017
Slide 2: Disclaimer
JAGUAR LAND ROVER 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 app
Slide 3: JAGUAR LAND ROVER
JAGUAR LAND ROVER
Slide 4: Agenda
JAGUAR LAND ROVER AGENDA Financial performance for the quarter and the year 5 JLR Strategy 12 Other developments 20 Looking ahead 21 Closing Q&A Company participants Dr. Ralf Speth, CEO, Jaguar Land Rover C. Ramakrishnan, Group CFO, Tata Motors Bennett Birgbauer, Treasurer, Jaguar Land Rover - 4 -
Slide 5: Record Retail Sales FY17 604K Units, Up 16%
RECORD RETAIL SALES FY17 604K UNITS, UP 16% AND Q4 180K UNITS, UP 13% JAGUAR LAND ROVER LUXURY SPORTS LIFESTYLE LUXURY – RANGE ROVER LEISURE - DISCOVERY DUAL PURPOSE - DEFENDER XJ F-TYPE F-PACE RANGE ROVER ALL NEW DISCOVERY LAND ROVER DEFENDER* XF F-TYPE CONVERTIBLE RANGE ROVER SPORT DISCOVERY XE RA
Slide 6: Key Financial Metrics Strong Quarter to Close the Year
KEY FINANCIAL METRICS STRONG QUARTER TO CLOSE THE YEAR JAGUAR LAND ROVER £ millions Revenue EBITDA PBT 7,268 6,601 1,057 676 903 577 Q4 13.7% 14.5% 8.7% 9.0% EBIT EBIT Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 3,147 22,286 24,339 2,955 1,557 1,610 14.1% 12.1% 8.0% 6.0% EBIT EBIT Full year FY16
Slide 7: Record FY17 Retail Sales 604,009 Up 16%
JAGUAR LAND ROVER RECORD FY17 RETAIL SALES 604,009 UP 16% ALL REGIONS UP EXCEPT OVERSEAS Units in ‘000 North America UK Europe China Overseas +24% +16% +13% +32% (6)% 141 124 125 125 89 20% 21% 23% 21% 15% - 7 -
Slide 8: Year on Year PBT Favourable Volume/Mix Offset by Net Pricing
YEAR ON YEAR PBT FAVOURABLE VOLUME/MIX OFFSET BY NET PRICING JAGUAR LAND ROVER £ millions 456 (376) (107) 308 1,610 1,557 (238) 10 Market Equation FY17 £ 151m FY16 £ (157)m PBT FY16 Volume, mix Net Material & D&A Exchange & Tianjin PBT FY17 & market pricing operating costs commodities exceptional EB
Slide 9: China Joint Venture Increased Sales and Profits
CHINA JOINT VENTURE INCREASED SALES AND PROFITS JAGUAR LAND ROVER Units in 000’s £ millions Full year retail volumes JLR share of profit 151 65 32 64 FY16 FY17 FY16 FY17 - 9 -
Slide 10: Full Year Cash Flow Positive Free Cash Flow After Investment
FULL YEAR CASH FLOW POSITIVE FREE CASH FLOW AFTER INVESTMENT JAGUAR LAND ROVER £ millions 1,855 (199) 3,266 (3,438) 1,610 467 295 PBT D&A and Tax Cash profit Investment Working Free FY17 non-cash after tax capital & cash flow accruals - 10 -
Slide 11: Financing Structure Strong Liquidity
FINANCING STRUCTURE STRONG LIQUIDITY: £5.5B CASH & £1.9B UNDRAWN RCF JAGUAR LAND ROVER £ millions Total cash Bond maturity profile 5,487 4,651 3,581 3,423 801 562 401 401 300 400 558 FY16 FY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 Total Debt New Bonds Other debt: Discounted receivables, finance leases
Slide 12: JLR Strategy Blueprint for Lasting Success
JLR STRATEGY BLUEPRINT FOR LASTING SUCCESS JAGUAR LAND ROVER What We Do To Excel JAGUAR Experiences LAND ROVER people love, for life More Great Customer Environmental Products First Innovation Engaged Global Transformed Business Passionate Growth Cost Structure Excellence People Integrity, Pioneerin
Slide 13: JLR Strategy External Environment & Profitability Target
JLR STRATEGY EXTERNAL ENVIRONMENT & JLR PROFITABILITY TARGET JAGUAR LAND ROVER Geopolitical and economic environment, including Brexit Electrification and emissions compliance Driver assistance, connectivity and mobility trends Market and competitive forces Investment required for growth FY17 EBIT m
Slide 14: JLR Strategy Exciting New Products to Drive Future Growth
JLR STRATEGY EXCITING NEW PRODUCTS TO DRIVE FUTURE GROWTH JAGUAR LAND ROVER Discovery (Feb 2017) Range Rover Velar (Summer 2017) XF Sportbrake (Summer 2017) I-PACE Concept (2018) First premium SUV BEV Watch this space! - 14 -
Slide 15: Special Operations Bespoke, High Spec & Limited Edition Vehicles
JAGUAR LAND ROVER SPECIAL OPERATIONS BESPOKE, HIGH SPEC & LIMITED EDITION VEHICLES JAGUAR XKSS RANGE ROVER REBORN DISCOVERY PROJECT HERO F-TYPE PROJECT 7 JAGUAR LAND ROVER – CLASSIC – SPECIAL VEHICLE OPERATIONS SV - 15 -
Slide 16: JLR Strategy Electrification to Meet Customer Demand and Regulations
JAGUAR LAND ROVER JLR STRATEGY ELECTRIFICATION TO MEET CUSTOMER DEMAND AND REGULATIONS Current From 2018 More to follow... Hybrids Plug-in Hybrids Battery Electric VOGUE SE HYBRID PHEV - 16 -
Slide 17: JLR Strategy Driver Assistance and Automation Technologies
JAGUAR LAND ROVER JLR STRATEGY DRIVER ASSISTANCE AND AUTOMATION TECHNOLOGIES Presently legally permitted 1234 Assisted Partial Increased High 5 Driving Automation Automation Automation Autonomous System delivers longitudinal or lateral support – driver permanently in control Adaptive Cruise Control
Slide 18: JLR Strategy Connected Cars and InMotion
JAGUAR LAND ROVER JLR STRATEGY CONNECTED CARS AND INMOTION Connected Cars JLR have already deployed intelligent navigation and information systems, smartphone integration (including remote control of climate settings and security) and in-car Wi-Fi connectivity into various vehicles JLR has recently
Slide 19: JLR Strategy Global Manufacturing Footprint
JAGUAR LAND ROVER JLR STRATEGY GLOBAL MANUFACTURING FOOTPRINT UK Slovakia Solihull Nitra Halewood Castle Bromwich Wolverhampton (EMC) China Changshu Austria Graz Brazil India Itatiaia Pune - 19 -
Slide 20: Other Developments
JAGUAR LAND ROVER OTHER DEVELOPMENTS Bond Issuance JAGUAR LAND ROVER Jaguar Land Rover Automotive plc £300m 2.75% due 2021 €650m 2.20% due 2024 €650m 7 year bond and a £300m 4 year bond issued in January with coupons of 2.20% and 2.75% respectively Consent transactions completed in March to align th
Slide 21: 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. Consistent with this, FY18 investment spending is expected to be over £4b, including inves
Slide 22: Thank You
JAGUAR LAND ROVER Thank You Dr. Ralf Speth Jaguar Land Rover CEO, Jaguar Land Rover Abbey Road, Whitley, Coventry CV3 4LF C. Ramakrishnan Group CFO, Tata Motors Jaguarlandrover.com Bennett Birgbauer Treasurer, Jaguar Land Rover Jaguar Land Rover Investor Relations investor@jaguarlandrover.com Tata M
Slide 23: Additional Slides
JAGUAR LAND ROVER ADDITIONAL SLIDES
Slide 24: Key Financial Metrics Strong Quarter to Close the Year
KEY FINANCIAL METRICS STRONG QUARTER TO CLOSE THE YEAR JAGUAR LAND ROVER Period ended 31 March 2017 (£ millions) Quarter vs prior year Full year vs prior year Retail volumes (‘000 units) 179.5 20.7 604.0 82.4 Wholesale volumes (‘000 units) 158.9 9.0 534.7 25.4 Revenues 7,268 667 24,339 2,053 EBITDA
Slide 25: Income Statement Strong Quarter to Close the Year
JAGUAR LAND ROVER INCOME STATEMENT STRONG QUARTER TO CLOSE THE YEAR Period ended 31 March 2017 (£ millions) Quarter vs prior year Full year vs prior year Revenues 7,268 667 24,339 2,053 Material and other cost of sales (4,507) (639) (15,071) (1,666) Employee costs (652) (4) (2,490) (169) Other (expe
Slide 26: Record FY17 Retail Sales Led by F-PACE, XE and Discovery Sport
JAGUAR LAND ROVER RECORD FY17 RETAIL SALES 604,009 UP 16% LED BY F-PACE, XE AND DISCOVERY SPORT Units in ‘000 Jaguar 36.5 45.5 34.2 37.2 11.7 11.5 0.0 68.0 11.8 10.8 0.2 0.0 XE XF* XJ F-PACE F-TYPE (Discontinued) (XK) Land Rover 95.9 126.2 51.1 42.0 110.5 114.4 86.9 89.7 60.0 57.5 22.7 1.4 Discovery
Slide 27: Record Q4 Retail Sales of 179,509 Up 13%
JAGUAR LAND ROVER RECORD Q4 RETAIL SALES OF 179,509 UP 13% ALL REGIONS UP EXCEPT OVERSEAS Units in ‘000 North America UK Europe China Overseas +22% +20% +6% +22% (5)% 43 43 35 34 25 20% 24% 24% 19% 14% Volumes include sales from Chery Jaguar Land Rover – Q4 FY17 18,097 units - 27 -
Slide 28: Record Q4 Retail Sales Up 13% F-PACE, Range Rover and Discovery Sport
JAGUAR LAND ROVER RECORD Q4 RETAIL SALES OF 179,509 UP 13% F-PACE, RANGE ROVER AND DISCOVERY SPORT Units in ‘000 Jaguar 12.8 14.2 11.0 11.6 3.0 3.1 0.0 22.0 3.1 3.1 XE XF* XJ F-PACE F-TYPE Land Rover 34.3 38.0 15.8 8.4 33.0 34.9 24.2 26.2 16.2 17.9 5.5 0.2 Discovery Sport* Discovery Range Rover Evoq
Slide 29: FY17 Wholesales of 534,746 Up 5%
JAGUAR LAND ROVER FY17 WHOLESALES OF 534,746 UP 5% NORTH AMERICA, UK AND EUROPE UP Units in ‘000 North America UK Europe China Overseas +21% +4% +9% (4)% (12)% 143 132 115 86 59 25% 22% 27% 11% 16% Volumes exclude sales from Chery Jaguar Land Rover – 12M FY17 66,060 units - 29 -
Slide 30: FY17 Wholesales Mainly F-PACE, Run-out of Discovery and Defender
JAGUAR LAND ROVER FY17 WHOLESALES OF 534,746 UP 5% MAINLY F-PACE, RUN-OUT OF DISCOVERY AND DEFENDER Units in ‘000 Jaguar Land Rover Total JLR 39.2 46.7 36.2 25.6 12.2 10.1 1.7 76.1 12.6 10.9 0.1 0.0 89.8 86.0 53.7 37.6 91.7 97.4 90.3 87.5 60.1 56.3 21.6 0.6 509.3 534.7 102.1 169.3 407.2 365.5 XE XF*
Slide 31: Q4 Wholesales of 158,876 Up 6%
JAGUAR LAND ROVER Q4 WHOLESALES OF 158,876 UP 6% UK, NORTH AMERICA AND EUROPE UP Units in ‘000 North America UK Europe China Overseas +9% +10% +12% (5)% (5)% 46 40 34 24 16 21% 25% 29% 10% 15% Volumes exclude sales from Chery Jaguar Land Rover – Q4 FY17 16,124 units - 31 -
Slide 32: Q4 Wholesales Led by F-PACE, New Discovery Sales Started
JAGUAR LAND ROVER Q4 WHOLESALES OF 158,876 UP 6% LED BY F-PACE, NEW DISCOVERY SALES STARTED Units in ‘000 Jaguar Land Rover Total JLR 10.2 13.3 12.4 6.7 4.8 3.0 1.7 23.3 3.1 2.4 28.2 26.5 16.7 9.1 27.7 29.4 26.4 27.7 15.3 17.5 3.3 0.1 149.9 158.9 32.3 48.7 117.7 110.2 XE XF* XJ F-PACE F-TYPE Discove
Slide 33: Product and Other Investment Capital Expenditure to Grow the Business
JAGUAR LAND ROVER PRODUCT AND OTHER INVESTMENT CAPITAL EXPENDITURE TO GROW THE BUSINESS Period ended 31 March 2017 (millions) Quarter vs prior year Full year vs prior year R&D expense Capitalised 354 56 1,426 184 Expensed 99 (3) 368 50 Total R&D expense 453 53 1,794 234 Investment in tangible and ot
Slide 34: FX and Hedging Hedging Losses More Than Offset by Operational Gains
JAGUAR LAND ROVER FX AND HEDGING HEDGING LOSSES MORE THAN OFFSET BY OPERATIONAL GAINS JLR has significant operational FX exposures, particularly USD and RMB revenue and net EUR cost with each of these currencies accounting for over 20% of sales but in the case of the Euro, this is more than offset b
Slide 35: Foreign Exchange Impact on Profitability
FOREIGN EXCHANGE IMPACT ON PROFITABILITY JAGUAR LAND ROVER Period ended 31 March 2017 (millions) Quarter vs prior year Full year vs prior year Operational exchange n/a 323 n/a 982 Realised FX hedges and other (400) (326) (1,246) (980) Revaluation of current assets and liabilities 18 108 (171) (67) T
Slide 36: Cash Flow Positive Free Cash Flow After Investment
CASH FLOW POSITIVE FREE CASH FLOW AFTER INVESTMENT JAGUAR LAND ROVER Period ended 31 March 2017 (millions) Quarter Full year PBT 676 1,610 Add back D&A and other 504 1,855 Tax paid (90) (199) Cash profit after tax 1,090 3,266 Total product and other investment (1,036) (3,438) Working capital changes
Slide 37: Change in Presentation of Realised FX
CHANGE IN PRESENTATION OF REALISED FX QUALIFYING FX HEDGE GAINS/LOSSES IN REVENUE JAGUAR LAND ROVER 12 Months Ended 31 March (millions) 2015 2016 2017 Revenues (prior basis) 21,866 22,208 25,659 Hedging gains/(losses) 240 78 (1,320) Revenues (restated) 22,106 22,286 24,339 EBITDA 4,132 3,147 2,955 E