Tata Motors Limited · NSE:TMCV
Tata Motors — Q3 FY16 Earnings Presentation
33 slides from Tata Motors's earnings presentation, Feb 12, 2016
Slide 1: Jaguar Land Rover Automotive PLC Interim Report
Jaguar Land Rover Jaguar Land Rover Automotive PLC Interim Report For the three and nine month period ended 31 December 2015 Company registered number: 06477691 Contents Management’s discussion and analysis of financial condition and results of operations Market environment Jaguar Land Rover retail
Slide 2: Results for the Quarter Ended 31 December 2015
JAGUAR LAND ROVER JAGUAR LAND ROVER RESULTS FOR THE QUARTER ENDED 31 DECEMBER 2015 11th FEBRUARY 2016
Slide 3: 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 4: Participants
JAGUAR LAND ROVER PARTICIPANTS Kenneth Gregor CFO Jaguar Land Rover Bennett Birgbauer Treasurer Jaguar Land Rover C. Ramakrishnan Group CFO Tata Motors - 3 -
Slide 5: Agenda
JAGUAR LAND ROVER AGENDA Financial performance for the quarter 5 Other developments 18 Closing Q&A 20 - 4 -
Slide 6: Financial Performance Quarter Fiscal Year 2016
JAGUAR LAND ROVER FINANCIAL PERFORMANCE QUARTER 3 FISCAL YEAR 2016 - 5 -
Slide 7: Q3 FY16 Financial Results: Solid Improvement on Q2 FY16 with Record Sales
JAGUAR LAND ROVER Q3 FY16 FINANCIAL RESULTS SOLID IMPROVEMENT ON Q2 FY16 WITH RECORD SALES Record quarterly retail volumes of 137,653, up 23.4% year on year, with Jaguar up 30.0% and Land Rover up 22.1% Revenue £5.8b, down from £5.9b in Q3 FY15 but up from £4.8b in Q2 FY16 EBITDA £834m (14.4% margin
Slide 8: Key Financial Metrics
JAGUAR LAND ROVER KEY FINANCIAL METRICS (£ millions, unless stated) Q3 FY16 Change vs Q3 FY15 Change vs Q2 FY16 9M FY16 Change vs 9M FY15 Retail volumes incl. China JV (‘000 units) 137.7 26.2 27.5 362.8 24.9 Wholesale volumes excl. China JV (‘000 units) 137.6 15.4 26.4 359.4 18.1 Revenues 5,781 (98)
Slide 9: Retail Volumes by Geography Q3 FY16 Up 23% Year on Year
JAGUAR LAND ROVER RETAIL VOLUMES BY GEOGRAPHY Q3 FY16 UP 23% YEAR ON YEAR Units in ‘000 UK Up 47% North America Up 48% China * Down (10)% Q3 FY16 17.0 25.0 18.9 28.1 29.7 26.9 13.2 19.0 14.7 24.6 9.0* 3.8 6.0 4.3 3.5 24.9 12.8 4.9 5.1 Overseas, 19% UK, 18% Europe (ex. Russia), 23% North America, 20%
Slide 10: Retail Volumes by Carline Q3 FY16
RETAIL VOLUMES BY CARLINE Q3 FY16 STRONG SALES OF NEW XE AND DISCOVERY SPORT Units in ‘000 Jaguar - Q3 FY16 vs Q3 FY15 Land Rover - Q3 FY16 vs Q3 FY15 Up 30% Up 22% 113.8 93.2 28.4 Range Rover Evoque* Range Rover F-TYPE 31.5 XK 16.6 Range Rover Sport XJ 22.4 Discovery XF 14.4 XE 19.2 13.8 Discovery
Slide 11: Q3 FY16 Profits Year on Year
Q3 FY16 PROFITS YEAR ON YEAR Revenue £5,781m, down slightly (£98m) from Q3 FY15 (but up £950m from Q2 FY16). EBITDA £834m (14.4% margin), down £262m (but up £245m from Q2 FY16), reflecting: Softer sales in China and model mix Non recurrence from Q3 FY15 of annual China tax rebate (received in Q1 thi
Slide 12: Consolidated Cash Flow: Investment Largely Funded by EBITDA
CONSOLIDATED CASH FLOW INVESTMENT LARGELY FUNDED BY EBITDA Trade receivables (71) 1,000 Inventories 170 +77 (842) Accounts payable 157 900 834 Other current assets and liabilities 8 800 Other non-current assets and liabilities 112 700 600 500 +376 (12) +21 454 400 300 200 100 0 EBITDA Expensed inves
Slide 13: Financing Structure: Strong Liquidity
FINANCING STRUCTURE STRONG LIQUIDITY 6,000 Total Balance Sheet Debt at 31 Dec 2015 £mn 5,000 Short term borrowings 158 1,870 Long term debt 2,399 4,000 Total 2,557 3,000 2,000 3,408 1,870 1,000 57 737 472 337 396 400 — — Liquidity CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 Cash and financial depos
Slide 14: Exciting New Products
EXCITING NEW PRODUCTS RECENT AND UPCOMING PRODUCTS TO DRIVE GROWTH Evoque 16MY - Launched Aug 15 All new lightweight XF - Launched Sep 15 China JV Discovery Sport - Launched Nov 15 XJ 16MY - Launched Dec 2015 F-PACE - Launching in 2016 XE - Launching in US 2016 The Jaguar XE has been nominated for t
Slide 15: Other Developments: Investing in Manufacturing Base and Technology
OTHER DEVELOPMENTS INVESTING IN MANUFACTURING BASE AND TECHNOLOGY UK Engine Plant Slovakia Plant Electrification Additional £450m investment announced Investment agreement to build a manufacturing plant in the city of Nitra JLR is exploring plug-in hybrid and battery electric vehicles £1b total inve
Slide 16: Looking Ahead: Investment and New Products to Drive Growth
LOOKING AHEAD INVESTMENT AND NEW PRODUCTS TO DRIVE GROWTH Updated investment guidance JLR’s strategy continues to be to invest in new products, technology and manufacturing capacity to grow profitably. We now expect investment spending in the region of £3.3b in 2015/16. JLR intends to continue to dr
Slide 17: Retail Volumes by Geography January
RETAIL VOLUMES BY GEOGRAPHY JAN JLR RETAIL VOLUME OF 46,016 up 24% Units in ‘000 UK Up 36% 5.8 5.0 0.8 Jan FY15 7.9 5.7 2.2 Jan FY16 North America Up 9% 7.1 5.7 1.3 Jan FY15 7.7 6.2 1.4 Jan FY16 China* Up 5% 10.8 9.0 1.8 Jan FY15 11.4 4.4 9.9 1.5 Jan FY16 Europe Up 65% 7.1 6.4 0.7 Jan FY15 11.8 10.2
Slide 18: Q&A
JAGUAR LAND ROVER Q&A KENNETH GREGOR CFO, JAGUAR LAND ROVER -17 -
Slide 19: Thank You
JAGUAR LAND ROVER Thank You Kenneth Gregor CFO, Jaguar Land Rover C. Ramakrishnan Group CFO, Tata Motors Bennett Birgbauer Treasurer, Jaguar Land Rover Jaguar Land Rover Investor Relations investor@jaguarlandrover.com Tata Motors Investor Relations Ir_tml@tatamotors.com Jaguar Land Rover Abbey Road,
Slide 20: Additional Slides
JAGUAR LAND ROVER ADDITIONAL SLIDES -19 -
Slide 21: Income Statement
JAGUAR LAND ROVER INCOME STATEMENT Change vs Change vs Change vs (£ millions, unless stated) Q3 FY16 Q3 FY15 Q2 FY16 9M FY16 9M FY15 Revenues 5,781 (98) 950 15,614 (426) Material and other cost of sales (3,496) 69 (580) (9,318) 450 Employee costs (582) (47) (43) (1,673) (246) Other (expense) /Income
Slide 22: Product and Other Investment
JAGUAR LAND ROVER PRODUCT AND OTHER INVESTMENT CAPITAL EXPENDITURE TO GROW THE BUSINESS Change vs Change vs Change vs (£ millions, unless stated) Q3 FY16 Q3 FY15 Q2 FY16 9M FY16 9M FY15 24 27 R&D expense Capitalised 323 20 17 944 94 Expensed 77 12 2 216 36 Total R&D expense 400 32 19 1,160 130 Inves
Slide 23: Wholesale Volumes by Geography Q3 FY16
JAGUAR LAND ROVER WHOLESALE VOLUMES BY GEOGRAPHY Q3 FY16 US, UK, EUROPE, OVERSEAS UP; CHINA DOWN Units in ‘000 UK North America China * Q3 FY16 Up 49% Up 45% Down (54)% Overseas, 21% UK, 19% 26.0 30.5 34.1 North America, 22% 17.5 21.0 Europe (ex. Russia), 27% 18.3 26.1 29.1 15.8 13.9 16.1 10.4 7.7 C
Slide 24: Wholesale Volumes by Carline Q3 FY16
JAGUAR LAND ROVER WHOLESALE VOLUMES BY CARLINE Q3 FY16 STRONG SALES OF NEW XE AND DISCOVERY SPORT Units in ‘000 0.2 Jaguar - Q3 FY16 vs Q3 FY15 Up 42% 19.1 2.8 4.4 11.7 Q3 FY15 0.0 27.0 2.7 2.9 10.0 11.4 Q3 FY16 Land Rover - Q3 FY16 vs Q3 FY15 F_TYPE XK XJ XF XE Up 7% 103.1 35.3 16.3 22.2 15.1 0.0 8
Slide 25: Retail Volumes by Geography YTD
JAGUAR LAND ROVER RETAIL VOLUMES BY GEOGRAPHY – YTD US, UK AND EUROPE UP; CHINA AND OVERSEAS DOWN Units in ‘000 58.0 45.1 12.9 9m FY15 UK Up 24% 71.9 53.0 19.0 9m FY16 North America 55.1 42.9 12.1 9m FY15 Up 29% 70.8 59.7 11.1 9m FY16 China * Down (25)% 92.4 75.9 16.5 9m FY15 9m FY16 68.9 19.4 38.7
Slide 26: Retail Volumes by Carline YTD
RETAIL VOLUMES BY CARLINE - YTD STRONG SALES OF NEW XE AND DISCOVERY SPORT JAGUAR LAND ROVER Units in ‘000 Jaguar - 9m FY16 vs 9m FY15 Land Rover -9m FY16 vs 9m FY15 Up 12% Up 6% 298.2 280.4 92.9 77.6 Range Rover Evoque* F_TYPE Range Rover XK 43.8 Range Rover Sport XJ 40.6 62.7 Discovery XF XE 59.2
Slide 27: Wholesale Volumes by Geography YTD
WHOLESALE VOLUMES BY GEOGRAPHY - YTD US, UK, EUROPE UP; CHINA, OVERSEAS DOWN JAGUAR LAND ROVER Units in ‘000 UK North America China * 9m FY16 Up 31% Up 43% Down (51)% 74.7 78.0 96.1 Overseas, 20% UK, 21% 57.0 52.2 54.5 66.6 46.7 Europe (ex. Russia), 25% North America, 22% 44.9 22.4 43.4 78.9 36.2 Ch
Slide 28: Wholesale Volumes by Carline YTD
WHOLESALE VOLUMES BY CARLINE - YTD STRONG SALES OF NEW XE AND DISCOVERY SPORT JAGUAR LAND ROVER Units in ‘000 Jaguar - 9m FY16 vs 9m FY15 Land Rover - 9m FY16 vs 9m FY15 Up 24% 284.9 Up 2% 289.5 94.6 64.0 Range Rover Evoque* F_TYPE 44.8 Range Rover XK Range Rover Sport XJ 43.3 63.8 Discovery XF 69.9
Slide 29: Retail Volumes by Carline January
RETAIL VOLUMES BY CARLINE JAN JLR RETAIL VOLUME OF 46,016 JAGUAR LAND ROVER up 24% Units in ‘000 Jaguar - Jan FY16 vs Jan FY15 Land Rover - Jan FY16 vs Jan FY15 Up 44% Up 20% 38.1 Range Rover Evoque* 31.6 9.7 Range Rover F-TYPE XK 10.3 5.0 Range Rover Sport XJ Discovery XF 6.8 4.8 XE Discovery 4.8 S
Slide 30: Wholesale Volumes by Geography January
WHOLESALE VOLUMES BY GEOGRAPHY JAN JLR WHOLESALE VOLUME OF 42,249 up 16% JAGUAR LAND ROVER Units in ‘000 UK North America China* Jan FY16 Up 39% Up 7% Down (30)% 8.9 7.9 8.4 7.1 Overseas, 17% UK, 21% 6.4 7.0 6.8 6.4 5.4 5.0 Europe (ex. Russia), 30% North America, 20% 5.5 1.9 2.1 1.7 3.6 China Region
Slide 31: Wholesale Volumes by Carline January
WHOLESALE VOLUMES BY CARLINE JAN JLR WHOLESALE VOLUME OF 42,249 JAGUAR LAND ROVER up 16% Units in ‘000 Jaguar - Jan FY16 vs Jan FY15 Land Rover - Jan FY16 vs Jan FY15 Up 62% Up 8% 33.7 31.2 Range Rover Evoque* 7.5 Range Rover F-TYPE 9.4 XK 4.4 Range Rover Sport XJ Discovery XF 5.3 6.9 XE Discovery 8
Slide 32: Financing Structure: Strong Liquidity
FINANCING STRUCTURE STRONG LIQUIDITY JAGUAR LAND ROVER (£ millions, unless stated) Q3 FY16 Q3 FY15 Change Q2 FY16 Change Cash and cash equivalents 2,432 2,884 (452) 2,104 (2,556) Financial deposits 976 1,143 (167) 856 (1,023) Cash and financial deposits 3,408 4,027 (619) 2,960 (3,579) Undrawn 5 year
Slide 33: Consolidated Cash Flow: Investment Largely Funded by EBITDA
CONSOLIDATED CASH FLOW INVESTMENT LARGELY FUNDED BY EBITDA Quarter ended 31 December 9 months ended 31 December (£ millions, unless stated) 2015 2014 Change 2015 2014 Change EBITDA 834 1,096 (262) 2,244 3,116 (872) Working capital and non cash accruals 376 (263) 639 (584) (302) (282) Tax paid (12) (