Tata Motors Limited · NSE:TMCV
Tata Motors — Q3 FY18 Earnings Presentation
29 slides from Tata Motors's earnings presentation, Feb 7, 2018
Slide 1: Jaguar Land Rover Results for the Three and Nine Months Ended 31 December 2017
JAGUAR LAND ROVER RESULTS FOR THE THREE AND NINE MONTHS ENDED 31 DECEMBER 2017 AS INCLUDED IN TATA MOTORS GROUP PRESENTATION Kenneth Gregor, CFO 5 February 2018
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 Business highlights 4 Financial performance for the quarter and year to date 5 JLR strategic priorities 12 Looking ahead 21 Closing Q&A—3—
Slide 4: Business highlights: new products and other developments
Business highlights 4 new products and other developments New Products Other Developments E-PACE on sale in the UK and 18MY Range Rover Sport with Continuing to expand production at New Slovakia plant on track for Europe since November 2017 PHEV models now on sale our UK engine plant start of produc
Slide 5: Q3 revenue up 4%, PBT £63m lower
Q3 revenue up 4%, PBT Ł63m lower 17MY run-out, higher D&A; exceptional gain in FY17 9 Months Q3 Revenue PBT EBITDA IFRS, Łm Higher wholesales (2,829 units) led by Velar, offset by RR and RR Sport model year changeover Q3 FY17 included Ł85m Tianjin recovery Higher D&A from investment in new models, t
Slide 6: Q3 retails 154.4k, up 3.5%
Q3 retails 154.4k, up 3.5% China, Overseas higher; UK, Europe, NA lower YoY Wholesales Units 34.0 21.8 32.7 18.4 26.9 YoY (9.7)% (8.0)% 1.8% 14.4% 25.6% Retail volumes include sales from Chery Jaguar Land Rover – Q3 FY18 23,388 units, Q3 FY17 19,395 units Wholesale volumes exclude sales from Chery J
Slide 7: Q3 retails by model: Velar and Discovery ramp up
Q3 retails 154.4k, up 3.5% Velar and Discovery ramp up, RR and RR Sport 17MY run-out 29.7 24.7 18.517.116.5 12.912.5 10.7 6.8 2.22.4 0.6 XEXFXJE-PACEF-PACEF-TYPEDiscoveryDiscoveryRR EvoqueRR VelarRR SportRange Rover Sport YoY(4.1)0.9(0.8)0.6(0.9)0.0(1.1)4.9(3.0)17.1(6.2)(2.2) Wholesales Units6.25.22
Slide 8: Q3 PBT down £63m
Q3 PBT down Ł63m 17MY run-out, higher D&A; exceptional gain in FY17 IFRS, Łm Wholesales +2.8k Q3 FY17 5.6% Ł137m D&A on Ł67m prior period Tianjin recovery, units and Q3 FY18 6.9% of new models MTM loss offset by China favourable mix revenue market incentive 375 86(73) 32540(178) 275255 102(40) 225 1
Slide 9: Q3 free cash flow £(660)m
Q3 free cash flow Ł(660)m Ongoing investment, launch-related working capital outflow IFRS, Łm 573(35)730(1,070) 700 500 300 192 100 (100) (300)(661) (321) (500) PBT Q3 FY18Non-cash and otherTaxCash profit after taxInvestmentWorkingFree cash flow capital * Free cash flow defined as net cash generated
Slide 10: Q3 investment spending 17% of revenue
Q3 investment spending 17% of revenue New models, capacity, technology to grow 1,200 IFRS, Łm 5751,070 1,0009.1% 800 600 93495 4021.5% 400 6.4% 200 0 CapitalisedExpensedTotalCapitalTotal R&DR&DR&DInvestment*Investment YoY+23(3)+20+124+144 * Primarily plant, property and equipment of Ł542m—10 –
Slide 11: £3.7b cash, £1.9b undrawn RCF
Ł3.7b cash, Ł1.9b undrawn RCF Strong liquidity, average debt maturity over 4 years IFRS, Łm Total cash Debt maturity profile 5,000 4,500 4,000 3,840 3,817 3,714 142 3,500 3,000 2,500 2,000 3,675 1,500 1,000 500 770 576 519 370 370 400 370 300—/ / Q3 Q3 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY27 Total F
Slide 12: Q3 YoY favourable FX £100m
Q3 YoY favourable FX Ł100m Favourable FX revaluation, lower hedge reserve Ł67m prior IFRS, Łm 250 period FX 200 revaluation loss 102 100 50151623 0 (50) (100)(134) (150) OperationalRealised HedgesCurrent Asset/LiabilityTotal FX inUnrealised FXTotal FX in Exchange& OtherRevaluationEBITDA/EBITRevaluat
Slide 13: JLR Strategy
JLR STRATEGY
Slide 14: Consistent strategy
Consistent strategy Investing to drive sustainable profitable growth Business Blueprint Business Model Inputs Experiences people love, for life Environmental More GreatCustomer rstInnovation Environmental ProductsFirstInnovation GlobalEngaged Global Growth TransformedBusinessPassionate GrowthCost St
Slide 15: Responding to challenging environment
Responding to challenging environment Geopolitical and Market and Electrification, diesel Driver assistance, High capital economic environment, competitive forces—uncertainty and connectivity and investment including Brexit higher incentives emissions compliance mobility trends requirements Target g
Slide 16: Recent trends in industry volumes
Recent trends in industry volumes Units 000s (0.1)% 7,6077,595—Diesel uncertainty and UK taxationDiesel uncertaintyMarket cyclicality—Brexit uncertainty—Market cyclicality (1.9)% 4,4184,333 5.3% 5.0%3,066 2,913 2,3492,466 (12.6)% 542474 UKEuropeUSOverseasChina Q3 FY17Q3 FY18 The total industry car v
Slide 17: Premium car CAGR 2.4% to 7.2m by FY23
Premium car CAGR 2.4% to 7.2m by FY23 Led by China and Overseas; UK, NA weaker Units mils Total CAGR 7.2+2.4% 0.4-1.3% 6.2UK 1.1+4.3% 0.4Overseas 0.9 1.3+1.5% Europe 1.2 North America2.0+0.5% 2.0 1.8China2.4+4.4% FY17FY18FY19FY20FY21FY22FY23 Source: IHS Automotive November 2017, JLR Segments- 17 -
Slide 18: Growing JLR model range to meet demand
Growing JLR model range to meet demand 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 E-PACE RANGE ROVER SPORT DISCOVERY SPORT JAGUAR X
Slide 19: ACES transformation underway
ACES transformation underway 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 mobi
Slide 20: Electrification roadmap
Electrification roadmap Investment in recent years starting to deliver Present from 2020 • New and refreshed vehicles with electric options • All JLR vehicles offer electric options • First plug-in hybrids now offered in 18MY • Plug-in hybrids Range Rover and Range Rover Sport • Mild hybrids • E-TYP
Slide 21: Looking ahead
Looking ahead Continuing to invest to drive profitable growth MORE CHALLENGING GLOBAL ENVIRONMENT JAGUAR LAND ROVER OUTLOOK • Cyclically weaker markets in the US and UK • Continue to invest (Ł4b+ in FY18) in new products, technology and capacity to drive profitable growth • More competitive pricing
Slide 22: Thank You
Thank You Kenneth Gregor Jaguar Land Rover CFO, Jaguar Land Rover Abbey Road, Whitley, Coventry CV3 4LF Bennett Birgbauer Jaguarlandrover.com Treasurer, Jaguar Land Rover Jaguar Land Rover Investor Relations investor@jaguarlandrover.com Tata Motors Investor Relations Ir_tml@tatamotors.com—22 –
Slide 23: Additional Slides
ADDITIONAL SLIDES
Slide 24: Q3 revenue up 4%, PBT £63m lower
Q3 revenue up 4%, PBT Ł63m lower 17MY run-out, higher D&A; exceptional gain in FY17 Q3 FY18 Q3 FY17Change9M FY189M FY17Change 40324335 Retail volumes (‘000 units)154.4149.35.1441.6424.517.1 Wholesale volumes (‘000 units)133.7130.92.8383.0375.97.1 Revenues6,3106,04826218,23117,0711,160 EBITDA68561174
Slide 25: Q3 revenue up 4%, PBT £63m lower (income statement)
Q3 revenue up 4%, PBT Ł63m lower 17MY run-out, higher D&A; exceptional gain in FY17 Q3 FY18 Q3 FY17Change9M FY189M FY17Change 40324335 Revenues6,3106,04826218,23117,0711,160 Material and other cost of sales(4,033)(3,836)(197)(11,599)(10,564)(1,035) Employee costs(680)(648)(32)(1,998)(1,838)(160) Oth
Slide 26: 9M FY18 retails 441,600 up 4.0% YoY
9m FY18 retails 441,600 up 4.0% YoY China, Overseas, North America up; UK & Europe lower Yo Wholesales Units 92.0 82.3 93.0 49.3 66.4 YoY (6.5)% 9.2% (4.0)% 13.9% 7.1% Retail Volumes include sales from Chery Jaguar Land Rover – 9M FY18 65,425 units, 9M FY17 46,926 Wholesale volumes exclude sales fro
Slide 27: 9M FY18 retails by model
9m FY18 retails 441,600 up 4.0% YoY Led by Velar and F-PACE; RR Sport 17MY run-out 88.1 74.0 54.455.0 39.6 34.5 30.5 24.525.9 7.27.5 0.60.0 XEXFXJE-PACEF-PACEF-TYPEDiscovery SportDiscoveryRR EvoqueRR VelarRR SportRange RoverDiscontinued YoY(6.8)4.9(1.2)0.68.4(0.2)(0.1)0.8(5.6)25.9(8.5)(0.0)(1.2) Who
Slide 28: China joint venture
China joint venture XEL now on sale Retail volumes Current models JLR share of profit XF L XEL Discovery Sport Evoque Upcoming models E-PACE—28 –
Slide 29: Q3 YoY favourable FX £100m
Q3 YoY favourable FX Ł100m Favourable FX revaluation, lower hedge reserve 0 Q3 FY18 Q2 FY18ChangeQ3 FY17Change 403932 Operational exchangen/an/a(65)n/a(134) Realised FX hedges and other(304)(343)39(455)151 Revaluation of current assets and liabilities4(11)15(2)6 Total FX impacting EBITDA & EBITn/an/