Tata Motors Limited · NSE:TMCV
Tata Motors — Q3 FY13 Earnings Presentation
63 slides from Tata Motors's earnings presentation, Feb 15, 2013
Slide 1: Tata Motors Limited Form 6-K
Table of Contents FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the Month of February 2013 Commission File Number: 001-32294 TATA MOTORS LIMITED (Translation of registrant’s nam
Slide 2: Table of Contents
Table of Contents TABLE OF CONTENTS Item 1: Form 6-K dated February 15, 2013 along with the Press Release.
Slide 3: Signature
Table of Contents SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised. Tata Motors Limited By: /s/ Hoshang K Sethna Name: Hoshang K Sethna Title: Company Sec
Slide 4: Jaguar Land Rover Automotive plc Interim Report
Table of Contents Jaguar Land Rover Automotive plc Interim Report for the three months and nine months ended 31 December 2012
Slide 5: Contents
Table of Contents Table of contents Page JLR key metrics 2 Management’s discussion and analysis of financial condition and results of operations General trends in performance (including results of operations) 4 Business risks and mitigating factors 8 Employees 8 Liquidity and capital resources 8 Acq
Slide 6: JLR key metrics
Table of Contents JLR key metrics Retail volumes Revenue EBITDA Net income Guidance Notes: • Net Income is after providing for mark to market losses on un-hedged commodity and foreign exchange derivatives • EBITDA – measured as earnings before tax add back depreciation, amortisation, finance income,
Slide 7: LA motor show launch of the XFR-S
Table of Contents LA motor show launch of the XFR-S Launched at the Los Angeles motor show, the XFR-S is Jaguar’s fastest, most powerful and agile sports saloon ever. The second model in Jaguar’s ultra-high performance R-S range, the XFR-S joins its XKR-S sibling in the exclusive 300km/h club and is
Slide 8: Management's discussion and analysis of financial condition and results of operations
Table of Contents Management’s discussion and analysis of financial condition and results of operations Jaguar Land Rover has continued to realise strong sales growth with overall retail sales of 89,000, up 11,000 units from Q3 FY12. Land Rover sales are up 12,000 units reflecting continuing growth
Slide 9: Cash flow
Table of Contents Cash flow Free cash outflow of £132 million in the quarter reflects investment spending and working capital timing effects (eg new Range Rover launch). Net cash provided by operating activities was £314 million in the quarter compared to £717 million during Q3 FY12, reflecting lowe
Slide 10: Performance in key geographical markets on retail basis: United States
Table of Contents Performance in key geographical markets on retail basis United States The US economic situation continues to show signs of recovery in the current quarter, but uncertainty remains due to negotiations on spending and deficit levels needing to be completed over the next few months. J
Slide 11: Europe (excluding Russia and UK)
Table of Contents Europe (excluding Russia and UK) European financial markets have stabilised in the past six months, although macro-economic pressures continue, with recession in a number of countries and a slowdown in Germany and France. Credit rating agencies continue to be negative about Euro ar
Slide 12: Business risks, employees, liquidity and capital resources
Table of Contents Business risks and mitigating factors As discussed on pages 21-30, and elsewhere, of the Annual Report 2011-12 of the Company, Jaguar Land Rover is exposed to various business risks including the uncertainty of global economic conditions, fluctuations of currency exchange rates and
Slide 13: Acquisitions and disposals; Board of Directors
Table of Contents Acquisitions and disposals There were no material acquisitions or disposals in the period. Off-balance sheet financial arrangements The Company has no off-balance sheet financial arrangements other than commitments disclosed in the condensed interim financial statements. Consolidat
Slide 14: Condensed consolidated income statement, three months ended 31 December 2012
Table of Contents Condensed consolidated income statement for the three months ended 31 December 2012 (unaudited) Three months ended Three months ended 31 December 2012 31 December 2011 Non- Non- Trading operating Trading operating result result result result Note £m £m Total £m £m Total Revenue 3,8
Slide 15: Condensed consolidated income statement, nine months ended 31 December 2012
Table of Contents Condensed consolidated income statement for the nine months ended 31 December 2012 (unaudited) Nine months ended Nine months ended 31 December 2012 31 December 2011 Non- Non- Trading operating Trading operating result result result result Note £m £m Total £m £m Total Revenue 10,730
Slide 16: Condensed consolidated statement of comprehensive income
Table of Contents Condensed consolidated statement of comprehensive income for the three and nine months ended 31 December 2012 Three months ended Three months ended Nine months ended Nine months ended 31 December 2012 31 December 2011 31 December 2012 31 December 2011 (unaudited) (unaudited) (unaud
Slide 17: Condensed consolidated balance sheet
Table of Contents Condensed consolidated balance sheet at 31 December 2012 31 December 2012 31 March 2012 £m £m Note (unaudited) (audited) Non-current assets Investments 2.0 1.4 Other financial assets 235.6 106.9 Property, plant and equipment 2,083.5 1,585.9 Pension asset 17 0.9 1.9 Intangible asset
Slide 18: Condensed consolidated balance sheet (continued)
Table of Contents Condensed consolidated balance sheet (continued) at 31 December 2012 31 December 2012 31 March 2012 £m £m Note (unaudited) (audited) Equity attributable to equity holders of the company Ordinary shares 1,500.6 1,500.6 Capital redemption reserve 166.7 166.7 Reserves/(accumulated def
Slide 19: Condensed consolidated statement of changes in equity
Table of Contents Condensed consolidated statement of changes in equity for the nine months ended 31 December 2012 Capital Reserves / redemption accumulated Total Ordinary shares reserve deficit equity £m £m £m £m Balance at 31 March 2012 (audited) 1,500.6 166.7 1,256.9 2,924.2 Net income for the ni
Slide 20: Condensed consolidated cash flow statement
Table of Contents Condensed consolidated cash flow statement for the nine months ended 31 December 2012 Nine months ended Nine months ended 31 December 31 December 2012 2011 (unaudited) (unaudited) £m £m Cash flows from operating activities Net income attributable to shareholders 837.2 785.2 Depreci
Slide 21: Condensed consolidated cash flow statement (continued)
Table of Contents Condensed consolidated cash flow statement (continued) for the nine months ended 31 December 2012 Nine months ended Nine months ended 31 December 31 December 2012 2011 (unaudited) (unaudited) £m £m Cash flows (used in) / from financing activities Finance expense and fees paid (140.
Slide 22: Notes: Accounting policies
Table of Contents Notes (forming part of the condensed interim financial statements) 1 Accounting policies Basis of preparation The information for the nine months ended 31 December 2012 is unaudited and does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The
Slide 23: Notes: Research and development; Foreign exchange
Table of Contents Notes (continued) 2 Research and development Three months ended Three months ended Nine months ended Nine months ended 31 December 31 December 31 December 31 December 2012 2011 2012 2011 (unaudited) (unaudited) (unaudited) (unaudited) £m £m £m £m Total R&D costs 275.0 234.2 806.4 6
Slide 24: Notes: Finance income and expense
Table of Contents Notes (continued) 4 Finance income and expense Recognised in net income Three months ended Three months ended Nine months ended Nine months ended 31 December 31 December 31 December 31 December 2012 2011 2012 2011 (unaudited) (unaudited) (unaudited) (unaudited) £m £m £m £m Finance
Slide 25: Notes: Other financial assets, inventories, other current assets
Table of Contents Notes (continued) 6 Other financial assets – current 31 December 2012 31 March 2012 (unaudited) (audited) £m £m Advances and other receivables recoverable in cash 26.1 0.1 Derivative financial instruments 113.5 48.4 Restricted cash 101.7 131.4 Other 6.5 2.9 247.8 182.8 7 Inventorie
Slide 26: Notes: Other financial liabilities and provisions
Table of Contents Notes (continued) 11 Other financial liabilities 31 December 2012 31 March 2012 (unaudited) (audited) £m £m Current Liabilities for vehicles sold under a repurchase arrangement 176.4 153.7 Finance lease obligations 4.3 4.7 Interest accrued 26.9 46.5 Derivative financial instruments
Slide 27: Notes: Provisions (continued)
Table of Contents Notes (continued) 12 Provisions (continued) Product warranty 31 December 31 March 2012 2012 (unaudited) (audited) £m £m Opening balance 569.2 503.1 Provision made during the period 257.7 371.5 Provision used during the period (199.9) (298.5) Impact of discounting 1.3 (6.9) Closing
Slide 28: Notes: Provisions (continued)
Table of Contents Notes (continued) 12 Provisions (continued) Product warranty provision The group offers warranty cover in respect of manufacturing defects, which become apparent within a year and up to five years after purchase, dependent on the market in which the purchase occurred. Product liabi
Slide 29: Notes: Interest bearing loans and borrowings
Table of Contents Notes (continued) 14 Interest bearing loans and borrowings 31 December 31 March 2012 2012 (unaudited) (audited) £m £m Euro MTF listed bond 1,481.9 1,484.4 Loan from banks 404.4 332.6 Redeemable preference shares classified as debt — 157.1 Finance lease liabilities 16.7 19.8 1,903.0
Slide 30: Notes: Other reserves (continued); Dividends
Table of Contents Notes (continued) 15 Other reserves (continued) Profit and Total reserves / Translation Hedge Pension loss accumulated reserve reserve reserve reserve deficit £m £m £m £m £m Balance at 1 April 2011 (383.3) 21.8 (535.2) 704.8 (191.9) Net income for the year — — — 1,481.1 1,481.1 Mov
Slide 31: Notes: Employee benefits
Table of Contents Notes (continued) 17 Employee benefits Jaguar Land Rover Limited and Land Rover, have pension arrangements providing employees with defined benefits related to pay and service as set out in the rules of each fund. The following table sets out the disclosure pertaining to employee b
Slide 32: Notes: Employee benefits (continued)
Table of Contents Notes (continued) 17 Employee benefits (continued) The range of assumptions used in accounting for the pension plans in both periods is set out below: December 2012 March 2012 % % Discount rate 4.5 5.1 Rate of increase in compensation level of covered employees 3.4 3.8 Inflation in
Slide 33: Notes: Commitments and contingencies
Table of Contents Notes (continued) 18 Commitments and contingencies In the normal course of business, the group faces claims and assertions by various parties. The group assesses such claims and assertions and monitors the legal environment on an on-going basis, with the assistance of external lega
Slide 34: Notes: Capital management
Table of Contents Notes (continued) 19 Capital management The Company’s objectives for managing capital are to create value for shareholders, to safeguard business continuity and support the growth of the Company. The Company determines the amount of capital required on the basis of annual operating
Slide 35: Notes: Related party transactions; Post balance sheet events
Table of Contents Notes (continued) 20 Related party transactions (continued) Compensation of key management personnel Nine months ended Nine months ended 31 December 2012 31 December 2011 (unaudited) (unaudited) £m £m Key management personnel remuneration 8.2 13.5 21 Post balance sheet events In Ja
Slide 36: Front Cover Pictures
Table of Contents Front Cover Pictures Jaguar F-TYPE on US launch Land Rover sponsored Race2Recovery in Dakar rally Vehicles above All new Range Rover Jaguar XF Sportbrake For further details visit www.jaguarlandrover.com 32
Slide 37: Jaguar Land Rover Automotive plc address
Table of Contents Jaguar Land Rover Automotive plc Abbey Road Whitley Coventry CV3 4LF 33
Slide 38: Jaguar Land Rover results under IFRS for the period ended 31 December 2012
Table of Contents Jaguar 14 February Land 2013 Rover results under IFRS for the period ended 31 December 2012
Slide 39: Disclaimer
Table of Contents Statements Disclaimer be to •regulations, 2Consolidated Q3 FY13 FY12 the “forward-looking FY13 FY12 Company’s represents represents intax results this laws operations presentation theof statements” and 12 the Jaguar month other 3 month include, Land statutes describing period withi
Slide 40: Participants
Table of Contents Kenneth Participants CFO Bennett 3Treasurer Jaguar Birgbauer Gregor Jaguar LandC. Land Rover Ramakrishnan Rover CFO Tata Motors
Slide 41: Agenda
Table of Contents Key topics Agenda Financial Looking 4Closing Q&A ahead performance Page 17 / other developments 5 14
Slide 42: Q3 FY13 financial highlights
Table of Contents Q3 FY13 Retail EBITDA PBT Free Cash 5Successful cash of and volumes £404m £533m, financial outflow newfor 89,000, 10with of the deposits year highlights £132m quarter EBITDA up bond 14% £2,141m after issue and from margin investment £1,167m in and prior January, ofundrawn 14% year
Slide 43: Key financial metrics (IFRS)
Table of Contents Key Quarter (£ Retail Wholesale Revenues EBITDA Profit Free 621Cash Cash Includes millions, financial metrics cash 2,141 before after volumes from ended 533 % flow (IFRS) cash volumes tax 1,687 unless 14.0% -operating tax 639(106) metrics IFRS 31 296 (1)(132) (‘000 and 404 3,804 De
Slide 44: Overall performance
Table of Contents Overall Land Jaguar recent its 7costs run-out to Rover quarters retail performance support phase—on-going retail volume and future volume management down continues business up 1,000 effect 12,000 to growth expectations. units be ofunits good higher (8%)(17%) –marketing reflecting H
Slide 45: Quarterly retail volumes by carline
Table of Contents Quarterly Jaguar 813 Total Land 26Up 14 20 5914728 Q3 New Range 125483111 Down 15 17% FY12 XJRange XFRover Rover – 77 Q3 8% Q3 retail Rover –FY13 FY13 Evoque Freelander 12 Q3volumes XK FY13 vs Q3 Range vs Discovery by FY12 Q3 carline Rover FY12Sport Defender
Slide 46: Quarterly retail volumes by geography
Table of Contents Quarterly UK 10 Down 17 11 18 20 4.9% 89k 22.3% 22.5% 19 14316 Up 14 213 Q3 All markets Asia (ROW) 4.1% Pacific Europe America 78k 16.3% China 23.9% Russia) (ex. Land 214313 11 20 18 15 11% 54% 7% 36% 4% FY12 other North units (ROW) 18.3% Rover North 6% 16.8% Asia 17.8% 21.4% 15.8%
Slide 47: Consolidated income statement (IFRS)
Table of Contents Consolidated Quarter (£ Revenues Material Employee Other Product EBITDA Depreciation Foreign Net Income Profit 1. 10 Includes millions, finance expenses(738)(661)(77)(2,045)(1,742)(303) before after statement tax ended development exch. cost 533 3,804 costs(353)(254)(99)(968)(700)(
Slide 48: Consolidated cash flow (IFRS)
Table of Contents YTD Consolidated Quarter (£ Working Other Free Investment Changes Dividend Finance Net Cash Memo: 11 millions, change cash from flow & cash (including cash cash ended expenses in capital paid flow generation from operating in debt unless including equivalents cash tangible financia
Slide 49: Key financial indicators (IFRS)
Table of Contents Strong Key (£ Cash Long Other Net Total 12 millions, cash financial 2,141 liquidity equity Debt(1,886)(1,563)(323) debt debt/equity term undrawn financing 255 /undrawn 1,687 annualised unless 3,677 124 indicators—IFRS 3,132 committed structure 0.5 131 454 2,018 stated) credit 2,412
Slide 50: Agenda
Table of Contents Key topics Agenda Financial Looking Closing 13 Q&A ahead performance Page 17 / other developments 5 14
Slide 51: Developments: engine plant and China joint venture
Table of Contents Constructing Developments Laid 14 the foundation the newstones engine forplant the joint in theventure UK, with withthe Chery external in China structure almost complete
Slide 52: Summary and outlook
Table of Contents Good Summary Going -standards. 15full launch continuing generating overall forward Total strong launch to ofperformance monitor focus new capital operating of Jaguar isnew spending on: economic in engine Range the cashfirst inand Rover flows and FY14 nine sales AWD toismonths suppo
Slide 53: Agenda
Table of Contents Key topics Agenda Financial Looking Closing 16 Q&A ahead performance Page 17 / other developments 5 14
Slide 54: Q&A
Table of Contents Q&A
Slide 55: Additional slides
Table of Contents Additional slides
Slide 56: Key metrics Q3 compared to Q1 and Q2
Table of Contents Q3millions, Key (£ Retail Wholesale Revenues EBITDA Profit Free key metrics cash before volumes metrics 527 % flow (IFRS) volumes unless 14.5% tax 486 106 (‘000 –333 solid 3,638 533 stated) 14.8% 116(132) (‘000 431 units) 1,546 quarter 3,288 404 units) Q1 14.0% 8690 Q2 1,167 3,804
Slide 57: Retail volumes by carline, 9 months
Table of Contents Jaguar Down 39 4XK XJ 12 XF Total Land 21Up 221 22 42 41 23 79 35 33 915 New 68 3month months 38 25 17 36 33 11 31% Range Rover 1% – retail 9FY12 months RoverRange – 9volumes 9months months FY13by FY13 vs Rover FY13 carline 9 months vsEvoque 9 months FY12 Range FY12 Rover SportRang
Slide 58: Retail volumes by geography, 9 months
Table of Contents UK 4.8% 260k 21.4% 9Up FY12 All markets Asia (ROW) Europe North 4.5% Pacific (ex. 208k 16.4% China 21.7% Russia) Land month months 22% 6% 63% 23% 33% 16% other North 17.5% 20.6% (ROW) 18.3% units Rover North FY13 17.0% 43 Asia America 18.0% 18.5% 47 55 9 44 retail UK 9America 45 12
Slide 59: Quarterly wholesale volumes by carline
Table of Contents Quarterly Jaguar 9Down XF Total Land Up Q3 New Freelander 9 FY12 12% Range Rover 1% – 80 Q3 Q3 wholesale 15 Discovery 3Rover –FY13 FY13 15 71 Q3XK 31 FY13 vs Range 24 volumes 1Q3 Defender 114 vs XJ FY12 Rover 14 Q3 52by 4FY12 8 Evoque carline 15 9 11 Range 11 5 4 Rover Sport Range
Slide 60: Quarterly wholesale volumes by geography
Table of Contents Quarterly Flat UK North AllAll AsiaPacific Pacific4.8% 4.9% EuropeRussia) (ex.22.8% 23.5% 95k 21.1% Up Down Q3 All markets Asia (ROW) 3.8% Pacific Europe America 86k 17.5% China 23.8% Russia) (ex. Land4% 32% FY13 8% 43% FY12 other units 16.2% 14 (ROW) Pacific 18.5% Rover Europe Nor
Slide 61: Wholesale volumes by carline, 9 months
Table of Contents Jaguar Down 40 XK XJ XF Total Land Up 9219 New Rover Evoque Range Sport Defender Discovery Freelander month months 37 424% 24 33Range Rover 176 8% 23 Rover –12wholesale 9FY12 10 82 months –32 9 9months 41 months FY13 volumes 41 22 FY13 vs FY13 149by 34 months vscarline 37 9 months
Slide 62: Wholesale volumes by geography, 9 months
Table of Contents Upmonths 9UK North Asia FY12 (ROW) (ex. month 3% Russia) 19.4% Pacific America FY13 41 Asia wholesale 943 Russia) months 21.5% 9Up 17.9% 31 month Up 29% 349% volumes China 22.5% 11 Pacific FY13 FY12 109461221.5% 42 China All 4.4% 7by 32 10other geography 37 216.6% 256k North 310 9U
Slide 63: Product development and other investment
Table of Contents Product Key Quarter (£ R&D Capitalised Expensed Investment Total assets 26 million, financial R&D product expense ended and 46 unless in expense 229 other 43 and indicators—IFRS tangible 31191 3 December stated) other investment 144275 38104 and 662 investment 234 2012 other 40 557