Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Jaguar Land Rover — Merger or Acquisition (June 2008)
29 slides from Tata Motors Passenger Vehicles's merger presentation, June 2008
Slide 1: Jaguar
JAGUAR
Slide 2: Introducing Jaguar Land Rover
Introducing Jaguar Land Rover • One global premium automotive business, two great British car brands • Global sales of around 300,000 units, across 169 countries • Global revenue $15 billion – up over 50% in five years • Nine car lines, designed, engineered and manufactured in the UK • 16,000 talent
Slide 3: Jaguar: inspired by its sporting legends but looking to the future
Jaguar: inspired by its sporting legends but looking to the future 1922 1948 1961 1968 1989 2003 2006 Swallow Side Car Mark V and XK120 Launch of E-Type XJ Model debut Jaguar acquired by Launch of Launch of Company founded Ford all-aluminium XJ all-aluminium XK by motorcycle enthusiasts 1930 1940 19
Slide 4: Land Rover: after 60 years, delivering the finest ever all-terrain vehicles
Land Rover: after 60 years, delivering the finest ever all-terrain vehicles 1948 1970 2000 2004 2007 First Land Rover, the Series I, Range Rover introduced as Land Rover acquired by Ford New Discovery model launched – most Launch of was produced in Solihull the first genuinely awarded SUV with over
Slide 5: One global business, two great brands
One global business, two great brands • Over the last five years we have managed Jaguar Land Rover as a single integrated business with two great brands • All customer facing activities have dedicated, brand-specific teams led by brand MD’s with complementary global distribution networks • Two award
Slide 6: Business transformed over last five years
Business transformed over last five years Jaguar Land Rover • Cessation of vehicle assembly operations • Improved efficiency and quality at Solihull at Browns Lane • Workforce rationalisation • Halewood shared with Land Rover > c.2,200 employees 2004-2007 • Workforce rationalisation • Working capita
Slide 7: An experienced management team is leading delivery of the transformation
An experienced management team is leading delivery of the transformation Jaguar & Land Rover David Smith Chief Executive Officer Automotive experience: 25 yrs Time with JLR: 6 yrs Managing Director Jaguar Manufacturing Managing Director Land Rover Product Development Business Strategy & Finance Mike
Slide 8: JLR has excellent UK facilities
JLR has excellent UK facilities Halewood Whitley • X-Type & Freelander • Design and Engineering Centre • Stamping, Body & Assembly • 1,900 Employees • 2,000 Employees • Very successful turnaround • Highest Ford FPS and Quality Awards • JD Power European Gold Plant Award (2005) Gaydon • Global JLR he
Slide 9: A growing technical capability
A growing technical capability • Comprehensive vehicle Product Development capability > 5 new models in last 5 years • Petrol engine engineering and powertrain application capability for petrol and diesel • Product Development staff c.3,400 • Flexibility to balance resources across product portfolio
Slide 10: A comprehensive sustainability / CO2 plan
A comprehensive sustainability / CO2 plan • Future legislation is uncertain: > Mandatory EU standards proposed for 2012 based on weight, to achieve overall industry average of 130 g, specifics still being negotiated including timing and compensation arrangements > Potential niche producer derogation
Slide 11: Increasingly balanced global presence – less dependence on mature markets
Increasingly balanced global presence – less dependence on mature markets Sales by Region – Jaguar Sales by Region – Land Rover RoW RoW 14% UK UK 17% 22% 31% N 2007 N America America 27% Europe / 24% Europe / Russia Russia 37% 28% Dealer Network Land Rover Jaguar Of which joint North America 205 207
Slide 12: Operates in growing premium vehicle segments
Operates in growing premium vehicle segments Global Premium Passenger Car Volume by Segment 4.3 4.5 4.0 4.2 3.8 3.9 4.0 3.9 3.6 3.3 Sports 3.1 2.8 Millions Large Medium Compact Sub- Compact 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 CAGR 4.4% Global Premium SUV Volume by Segment 1.4
Slide 13: With significant company and dealer investment in growth markets
With significant company and dealer investment in growth markets Beijing St Petersburg China expected to be Russia expected to be – Land Rover’s 5th largest – Land Rover’s 3rd largest - Jaguar’s 7th largest - Jaguar’s 8th largest 13
Slide 14: To create Beautiful Fast Cars …
Jaguar’s mission is To create Beautiful Fast Cars … POSITIONING Exclusive, stylish and sporting cars that demand your STATEMENT immediate attention. PROPOSITION Seductive Form. Flawless Function. EXPRESSION This is the New Jaguar. 14
Slide 15: With a rapidly evolving Jaguar showroom
With a rapidly evolving Jaguar showroom Jaguar XF • Launched 2008 • Volume c. 40,000 units • Price – $67,000-$109,000 • Competitors – Mercedes Benz E-Class, BMW 5 Series, Audi A6 Jaguar XK • Launched 2006 (all-aluminium) • Volume 12,000 units • Price – $121,000-$152,000 • Competitors – Mercedes Benz
Slide 16: Winning increasing recognition and awards
Winning increasing recognition and awards XF • What Car? Best Executive Car and Car of the Year Award 2008 • What Diesel Car of the Year Award 2008 • Fleetworld 'Design of the Year ‘ AWARD XK • ‘Car Of The Year' And 'Best Coupe' Awards At The UK Auto Express New Car Honours (June 2006) • Over 15 oth
Slide 17: Jaguar sales – business repositions to compete as a premium niche player
Jaguar sales – business repositions to compete as a premium niche player 140 130 121 119 120 101 100 90 90 Volume (000) 80 75 75 60 60 50 44 40 39 40 30 29 27 27 20 - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007 2008 YTD YTD May May X-Type S-Type XF XJ XK Note: dat
Slide 18: Land Rover's mission is to create the world's finest all-terrain vehicles
Land Rover’s mission is “To create the world’s finest all-terrain vehicles” “world’s finest” “all-terrain vehicles” premium not just off-road of the highest quality embraces on-road most fit for purpose includes all-weather globally recognised © Land Rover 2003 18
Slide 19: Land Rover has benchmark products in every segment
Land Rover has benchmark products in every segment Range Rover • Launched 2001 • Volume 30,300 units • Price – $111,000-$144,000 • Competitors – Mercedes S Class, BMW 7 series, Porsche Cayenne Range Rover Sport • Launched 2005 • Volume 58,800 units • Price – $72,000-$126,000 • Competitors – BMW X5,
Slide 20: And continues to win in every category and market
And continues to win in every category and market Most Luxurious SUV Range Rover • 2007 Most Luxurious SUV • 2007 Best New Car for Off-roaders, Car.com, USA • 2005, ‘APPEAL’, JD Power, USA Range Rover Sport • 2006 & 07 Leisure car of the year, AXA • 2006 Best Diesel 4x4, Diesel Car Magazine, UK • 20
Slide 21: Land Rover – achieving sales records each year since 2005
Land Rover – achieving sales records each year since 2005 250 226 200 193 185 178 175 169 165 164 162 153 150 Volume (000) 125 128 116 100 90 93 88 73 50 - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007 2008 YTD YTD May May Defender Freelander Discovery Range Rover S
Slide 22: JLR financial data – basis of preparation
JLR financial data – basis of preparation • Jaguar Land Rover in financial accounting terms comprises a number of legal entities and national sales companies, many of which are embedded divisions of Ford legal entities. • Whilst the JLR legal entities have been audited to local statutory reporting s
Slide 23: JLR – significant improvement in profitability
JLR – significant improvement in profitability Above trend - XF Stock build and $800 One time non cash adjustments $650 $600 EBIT (excl. special items) (Mils.) $417 $400 $289 $200 $- $(200) $(400) $(357) $(499) $(600) 2005 2006 2007 Q1 2007 Q1 2008 23
Slide 24: JLR – improving financial performance
JLR – improving financial performance Q1 2008 B / (W) 2005 2006 2007 Q1 2007 Q1 2008 Q1 2007 (Mils.) (Mils.) (Mils.) (Mils.) (Mils.) (Mils.) Revenue $ 12,462 $ 12,969 $ 14,942 $ 3,548 $ 4,145 $ 597 Cost of Sales (10,955) (11,292) (12,258) (2,747) (3,161) (413) Gross Profit $ 1,507 $ 1,677 $ 2,685 $
Slide 25: In summary, a transformed business with gathering momentum
In summary, a transformed business with gathering momentum, the right owner and a strong plan • We have transformed the business • We are delivering improved business results • We are excited about our new owner And we have a strong plan: • Develop the full potential of our brands • Deliver exciting
Slide 26: Yes there will be challenges
Yes there will be challenges • Transition from Ford • Difficult world economic situation • Sustainability and CO2 challenges • Currency, commodity and energy prices • Relentless premium competition But our plans are robust and we have long-term arrangements in place to support these plans 26
Slide 27: Tata will provide JLR with the long-term security it needs
Tata will provide JLR with the long-term security it needs to fully develop the business • Jaguar Land Rover will operate as a stand-alone business within Tata with an agreed strategy and financial framework • Tata have committed to support the Jaguar Land Rover business plan including JLR’s market,
Slide 28: JLR and Ford will continue their strong association for many years
JLR and Ford will continue their strong association for many years • Separating JLR from Ford has many complexities, but we have a carefully constructed separation plan • Agreements have been reached between JLR and Ford to enable JLR to operate as normal during the transition • There are comprehens
Slide 29: Conclusion
Conclusion • One global business, two great British brands • Significant action taken by the JLR team to revitalise both brands and the business over the last few years • External environment is more volatile, with economic weakness in mature markets and high commodity costs but great growth market
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