Tata Motors Limited · NSE:TMCV
Tata Motors — Q2 FY14 Earnings Presentation
59 slides from Tata Motors's earnings presentation, Nov 12, 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 November 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 November 12, 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 Interim reportRover for the Automotive three and six plcmonths ended 30 September 2013
Slide 5: Table of contents
Table of Contents Table of contents Page Management’s discussion and analysis of financial condition and results of operations 2 General trends in performance (including results of operations) 3 Business risks and mitigating factors 5 Employees 5 Liquidity and capital resources 5 Acquisitions and di
Slide 6: 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 The Company has continued to increase sales in the quarter, with revenue for the 3 months of £4,612 million, up 40% from £3,288 million in Q2 FY13. With an EBITDA margin of 17.8%, up 3 ppt from Q2
Slide 7: General trends in performance (including results of operations)
Table of Contents General trends in performance (including results of operations) Overall strong volume growth Total retail volumes were 102,644 units for the quarter, an increase of 21% compared to Q2 FY13. Retail volumes for Q2 FY14 were 20,024 units for Jaguar and 82,620 for Land Rover, up 56% an
Slide 8: Performance in key geographical markets on retail basis
Table of Contents Performance in key geographical markets on retail basis Change Q2 FY14 Q2 FY13 (%) UK 20,201 18,115 12% North America 18,617 14,820 26% Europe 16,426 16,025 3% China 24,351 17,152 42% Asia Pacific 5,495 4,059 35% All other markets 17,554 14,578 20% Total JLR 102,644 84,749 21% The
Slide 9: European market and business risks
Table of Contents In the big four European countries the passenger car market saw the rate of decline soften to just (3.3%) YoY for the six months to September, the slowest pace of contraction in two years. Only in Spain did total car sales actually increase and this was the result of a government s
Slide 10: Borrowings
Table of Contents Borrowings The following table shows details of the Company’s financing arrangements as at 30 September 2013. Outstanding Undrawn as at as at Facility 30 September 30 September Facility amount Maturity 2013 2013 £ in millions £ in millions £ in millions Committed £500m Senior Notes
Slide 11: Condensed Consolidated Income Statement (three months)
Table of Contents Condensed Consolidated Income Statement For the three months ended 30 September 2013 (unaudited) Three months ended Three months ended 30 September 2013 30 September 2012 (unaudited) (unaudited) Non- Non- Trading operating Trading operating Note result result Total result result To
Slide 12: Condensed Consolidated Income Statement (six months)
Table of Contents Condensed Consolidated Income Statement For the six months ended 30 September 2013 (unaudited) Six months ended Six months ended 30 September 2013 30 September 2012 (unaudited) (unaudited) Non- Non- Trading operating Trading operating Note result result Total result result Total £m
Slide 13: Condensed Consolidated Statement of Comprehensive Income
Table of Contents Condensed Consolidated Statement of Comprehensive Income Three months Three months Six months Six months ended ended ended ended 30 September 30 September 30 September 30 September 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) £m £m £m £m Net income 507 305 81
Slide 14: Condensed Consolidated Balance Sheet
Table of Contents Condensed Consolidated Balance Sheet Note 30 September 31 March 2013 2013 £m £m (unaudited) (audited) Non-current assets Equity accounted investees 48 60 Other financial assets 468 195 Property, plant and equipment 2,708 2,335 Intangible assets 3,854 3,522 Other assets 10 8 Deferre
Slide 15: Condensed Consolidated Balance Sheet (continued)
Table of Contents Condensed Consolidated Balance Sheet (continued) Note 30 September 2013 31 March 2013 £m £m (unaudited) (audited) Equity attributable to shareholders Ordinary shares 1,501 1,501 Capital redemption reserve 167 167 Reserves 15 2,887 1,871 Equity attributable to shareholders 4,555 3,5
Slide 16: Condensed Consolidated Statement of Changes in Equity
Table of Contents Condensed Consolidated Statement of Changes in Equity Capital redemption Total Ordinary shares reserve Reserves Equity £m £m £m £m Balance at 31 March 2013 (audited) 1,501 167 1,871 3,539 Income for the period — — 811 811 Other comprehensive income for the period — — 355 355 Total
Slide 17: Condensed Consolidated Cash Flow Statement
Table of Contents Condensed Consolidated Cash Flow Statement Six months ended Six months ended 30 September 30 September 2013 2012 (unaudited) (unaudited) £m £m Cash flows from operating activities Net income attributable to shareholders 811 541 Adjustments for: Depreciation and amortisation 418 240
Slide 18: Condensed Consolidated Cash Flow Statement (continued)
Table of Contents Condensed Consolidated Cash Flow Statement (continued) Six months ended Six months ended 30 September 30 September 2013 2012 (unaudited) (unaudited) £m £m Cash flows from financing activities Finance expenses and fees paid (84) (92) Proceeds from issuance of short term debt 101 4 R
Slide 19: 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 six months ended 30 September 2013 is unaudited and does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The
Slide 20: Notes: Research and development, foreign exchange
Table of Contents Notes (continued) 2 Research and development Three months Three months Six months Six months ended ended ended ended 30 September 30 September 30 September 30 September 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) £m £m £m £m Total R&D costs 321 269 613 531 R
Slide 21: Notes: Finance income and expense
Table of Contents Notes (continued) 4 Finance income and expense Recognised in net income Three months Three months Six months Six months ended ended ended ended 30 September 30 September 30 September 30 September 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) £m £m £m £m Financ
Slide 22: Notes: Other financial assets, inventories, taxation
Table of Contents Notes (continued) 6 Other financial assets – current 30 September 2013 31 March 2013 (unaudited) (audited) £m £m Advances and other receivables recoverable in cash 9 24 Derivative financial instruments 252 31 Restricted cash 68 110 Other 17 11 346 176 7 Inventories 30 September 201
Slide 23: Notes: Capital expenditure, other financial liabilities, provisions
Table of Contents Notes (continued) 10 Capital expenditure Capital expenditure in the period was £558 million (6 month period to 30 September 2012: £570 million) on fixed assets and £588 million (6 month period to 30 September 2012: £531 million) was capitalised as intangible engineering assets (exc
Slide 24: Notes: Provisions (continued)
Table of Contents Notes (continued) 12 Provisions (continued) Product warranty 30 September 2013 31 March 2013 (unaudited) (audited) £m £m Opening balance 742 569 Provision made during the period 242 462 Provision used during the period (189) (287) Impact of discounting (4) (2) Closing balance 791 7
Slide 25: 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 26: Notes: Interest bearing loans and borrowings
Table of Contents Notes (continued) 14 Interest bearing loans and borrowings 30 September 2013 31 March 2013 (unaudited) (audited) £m £m EURO MTF listed bond 1,790 1,839 Loans from banks 327 328 Finance lease liabilities 21 23 2,138 2,190 Less: Current bank loan (327) (328) Total short term borrowin
Slide 27: Notes: Other reserves
Table of Contents Notes (continued) 15 Other reserves The movement of reserves and accumulated deficit is as follows: Translation Hedging Pension Profit & loss reserve reserve reserve reserve Total reserves £m £m £m £m £m Balance at 1 April 2013 (383) (197) (800) 3,251 1,871 Net profit for the perio
Slide 28: Notes: Other reserves (continued), dividends
Table of Contents Notes (continued) 15 Other reserves (continued) Translation Hedging Pension Profit & loss reserve reserve reserve reserve Total reserves £m £m £m £m £m Balance at 1 April 2012 (383) (20) (526) 2,186 1,257 Net profit for the year — — — 236 236 Movements in employee benefit plan — —
Slide 29: Notes: Employee benefits
Table of Contents Notes (continued) 17 Employee benefits Jaguar Land Rover Limited and Jaguar Land Rover Holdings Limited (previously 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
Slide 30: Notes: Employee benefits (continued)
Table of Contents Notes (continued) 17 Employee benefits (Continued) For the valuation at 30 September 2013 and 31 March 2013, the mortality assumptions used are the SAPS base table, in particular S1NxA tables and the Light table for members of the Jaguar Executive Pension Plan. A scaling factor of
Slide 31: 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 32: Notes: Related party transactions
Table of Contents Notes (continued) 20 Related party transactions (continued) Six months ended Six months ended 30 September 2013 30 September 2012 With associates With immediate With associates With immediate and joint or ultimate and joint or ultimate ventures parent ventures parent (unaudited) (u
Slide 33: Jaguar Land Rover Automotive plc address
Table of Contents Jaguar4LF Abbey CV3 Coventry Whitley 29 Land Road Rover Automotive plc
Slide 34: Jaguar Land Rover Q2 results, quarter ended 30 September 2013
Table of Contents Jaguar 8the November quarter Landended Rover 201330results September under2013 IFRS for
Slide 35: Disclaimer
Table of Contents Statements Disclaimer be to regulations, Q2 2Consolidated the “forward FY14 FY13 Company’s represents intax -looking results this laws operations presentation the of and statements” Jaguar 3other month include, Land statutes describing period within Rover among and from the the Aut
Slide 36: Participants
Table of Contents Kenneth Participants CFO Bennett 3Treasurer Jaguar Birgbauer Gregor Jaguar LandC. Land Rover Ramakrishnan Rover CFO Tata Motors
Slide 37: Key topics
Table of Contents Key topics Agenda Financial Looking 4Closing Q&A ahead performance Page 17 / other developments 5 14
Slide 38: Q2 FY14 financial highlights
Table of Contents Q2 FY14 Record Retail EBITDA PBT Free 5Cash cash of and volumes sales, £668m, £823m, financial flowrevenue of 102,000 upup £430m £237m deposits highlights £337m and for after profits onthe £2.7bn with the investment quarter, prior EBITDA andyear undrawn upof 19% margin £595m, from
Slide 39: Key financial metrics - IFRS
Table of Contents Key Quarter (£ Retail Wholesale Revenues EBITDA Profit Free 21Cash Cash Includes millions, financial metrics—IFRS cash (2) before after volumes from ended 2,699 823 % flow (IFRS) cash volumes tax unless 17.8% operating tax 486 metrics 30 507 (1) 2,176 (‘000 and 668 4,612 September
Slide 40: Strong performance
Table of Contents Strong Land wheel EBITDA wholesale richer includes PBT 7PAT of of Rover product geographic drive overall £507m £668m, £79m ofvolume and £823m retail mix performance reflects of up smaller local mix, volume increase £237m supported (margin an with incentives engine effective up due
Slide 41: Quarterly retail volumes by carline
Table of Contents Quarterly Jaguar 72 41683 31 Rover 24 Up 20 Sport 11 513 314 812 Q2 44XF 10 XJ Evoque 8FY13 New Range 3XK Freelander Defender 15% 56% 4F-TYPE 12 Sport –12 Range Range Q2Q2 Rover retail Range FY14 FY14 Discovery Rover volumes Rover vsQ2Q2FY13 by FY13 carline Q2Land FY14 Rover – Q2 F
Slide 42: Quarterly retail volumes by geography
Table of Contents Quarterly UK 18 24 20 12 Up 16 14 23415 Land 5.4% 102,644 23.7% 16.0% Q2 All markets (ROW) Asia Europe 4.8% Pacific (ex. Russia) 84,749 20.2% China 18.9% 514 3413 19 16 12% 3% FY14 FY13 3other 1North America 17.1% 17.2% 5Rover 117 14 18 5 1Up units Asia North 21.4% 16 18.1% 17.5% 1
Slide 43: Consolidated income statement - IFRS
Table of Contents Consolidated Quarter (£ Revenues Material Employee Other Product EBITDA Depreciation Foreign Net Income Profit 1. 2. Includes millions, finance expenses(831)(634)(197)(1,644)(1,307)(337) before after statement tax ended development exch. cost 823 4,612 costs(390)(314)(76)(751)(615)
Slide 44: Consolidated cash flow - IFRS
Table of Contents High Consolidated Quarter (£ Working Tax Cash Other Free Investment Changes Dividend Finance Net 11 millions, change paid(69)(47)(22)(266)(157)(109) cash levels from flow (including ended expenses in capital paid flow from operating in debt of unless cash fixed financial cash inves
Slide 45: Key financial indicators - IFRS
Table of Contents Strong Key (£ Financial Cash Long Other Net Total 12 millions, cash financial and liquidity equity debt(2,117)(1,739)(378) debt debt/equity term undrawn financing 582 cash financial deposits /undrawn annualised unless 4,555 437 indicators—IFRS 4,032 equivalents committed structure
Slide 46: Key topics
Table of Contents Key topics Agenda Financial Looking Closing 13 Q&A ahead performance Page 17 / other developments 5 14
Slide 47: New product and engine investment
Table of Contents Newproduct Jaguar £1.5bn 1st Using 14 model engines C-X17 investment will range Sports from be in aour smaller Crossover a new newlightweight sedan engine concept for facility, sale aluminium inJaguar 2015, architecture will the first be able aluminium to foroffer future vehicles m
Slide 48: Other developments
Table of Contents Other developments Launch Jaguar Community Innovation Moody’s 15 Land ofratingto premiumworld’sdieselfirstSUV campus RoverBa2 was is with lead followingupgradea named Warwick partner Responsible University and willsimilar hybrids; invest Business to create upgrade £50 Range of mill
Slide 49: Summary
Table of Contents Strong Summary In successfully continuing 16 the 2013/14 performance tolaunching build invest monitor generate fiscalsales inyear, economic strong more themomentum continued first newnew operating half Range and products sales with focus Rover cash the trends and is flows on: Sport
Slide 50: Key topics
Table of Contents Key topics Agenda Financial Looking Closing 17 Q&A ahead performance Page 17 / other developments 5 14
Slide 51: Q&A
Table of Contents Q&A
Slide 52: Additional slides
Table of Contents Additional slides
Slide 53: Six months retail volumes by carline
Table of Contents Jaguar 144 160 13 New 27 15 58 51 Up Range 37 85226 617month 10 XF months 21 Rover Range 2XK 22 11% 42% 8XJ F-TYPE Range 7Rover –22 824 Sport retail 6Sport FY13 Rover 23 months 27Discovery Freelander volumes Defender 6 months FY14byEvoque vs FY14 carline 6 months FY13 Land Rover –
Slide 54: Six months retail volumes by geography
Table of Contents 37month 45 33 28 36 725 Up 35 31 5829 FY13 Land (ROW) 18.5% 197,363 22.7% 18.4% 17.6% 65.5% All Asia 19.1% markets UK Pacific 170,507 20.9% China 20.8% Russia) 17.4% (ex. America Europe North 4.7% 831 5927 months 35 30 25 23 36 12% 3% 7other 2North 17.2% (ROW) 10 2 Rover 36 32 34 1
Slide 55: Quarterly wholesale volumes by carline
Table of Contents Quarterly Jaguar 68 13 83 New 30 Up Range 19 1Sport 2410 711 Q2 54113 9Defender F-Type Rover 3XK 23% 92% FY13 XF 4 XJ Freelander Range Rover –12 1023 Q2 11 Sport Q2 wholesale Evoque FY14 Discovery FY14Range vsQ2 volumes Q2FY13 FY13 Rover by Q2Land carline FY14Rover – Q2 FY14 vs Q2
Slide 56: Quarterly wholesale volumes by geography
Table of Contents Quarterly UK Up 19 27 12 14 11 Q Up20% 18 15 1313 Land 18.2% 4.8% 101,931 26.0% 17.2% Q2 All markets Asia (ROW) Europe North 5.1% Pacific (ex. 77,442 21.1% China 18.9% Russia) 245416 22 15 18 14 21% FY14 FY13 2other 1North 16.0% 17.0% 518.0% 17.8% 4Rover 1North 16 13 (ROW) 5America
Slide 57: Six months wholesale volumes by carline
Table of Contents Jaguar 29137 14 Land Up 139 812 57 51 Range 24 Sport 21 722 6Defender month F-Type XJ XF 827 months 6XK 20 New Rover Range Evoque 27 73% 11% 13Rover Freelander Rover –Range 155 wholesale 6Sport FY13 Rover months Discovery – 6 Range 6months months FY14 volumes Rover FY14 vs FY14 6by
Slide 58: Six months wholesale volumes by geography
Table of Contents UK 35 46 28 31 22 26 37 Up 33 4829 FY13 Land 5.6% 192,551 23.8% 618.4% All markets Asia (ROW) 4.8% Pacific Europe America 160,894 21.7% China 20.4% Russia) (ex. 930 5827 months month 35 28 23 36 23% 8% 5other 2North 18.0% 18.2% 9Rover 2North 22 35 11 FY14 3Up Asia 16.1% 17.4% 18.1%
Slide 59: Key financial indicators - product and other investment
Table of Contents Product Key Quarter (£ R&D Capitalised Expensed Investment intangible Total Of 26 millions, which financial R&D product expense ended and capitalised 62 assets in expense 259 unless other 51 and indicators—IFRS tangible 30218 11September other investment stated) 112 321 41 595 and