Tata Motors Limited · NSE:TMCV
Tata Motors — Q2 FY12 Earnings Presentation
64 slides from Tata Motors's earnings presentation, Nov 15, 2011
Slide 1: Form 6-K Tata Motors Limited
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 2011 Commission File Number: 001-32294 TATA MOTORS LIMITED (Translation of registrant’s name into English) BO
Slide 2: Table of Contents
TABLE OF CONTENTS Item 1: Form 6-K dated November 14, 2011 along with the Interim Report.
Slide 3: Signature
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 Secretary Dated: Nove
Slide 4: Jaguar Land Rover PLC Interim Report
Jaguar Land Rover PLC Interim Report for the three months and six months ended 30 September 2011
Slide 5: Table of Contents
TABLE OF CONTENTS Page KEY METRICS 2 KEY MILESTONES FOR QUARTER 2 2011/12 3 AWARDS AND RECOGNITIONS FOR QUARTER 2 2011/12 3 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Geopolitical environment 4 General trends in performance (including results of operations)
Slide 6: JLR Key Metrics
JLR KEY METRICS Note 1 Underlying EBIT is before providing for £94m of mark to market losses on un-hedged commodity and foreign exchange derivatives 2 Net Income is after providing for £94m of mark to market losses on un-hedged commodity and foreign exchange derivatives * EBITDA – measured as earnin
Slide 7: Key Milestones for Quarter 2 2011/12
KEY MILESTONES FOR QUARTER 2 2011/12 Jaguar Land Rover announces investment in a new advanced engine facility in the UK. JLR confirms a £355 million investment in a new facility to manufacture all-new, advanced technology, low-emission engines in the UK. The new advanced engine facility will be buil
Slide 8: Management's Discussion and Analysis: Geopolitical environment
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Geopolitical environment During the quarter to 30th September 2011 economic conditions and financial markets within the UK and euro zone have remained volatile. Economic indicators reflect continuing uncertainty an
Slide 9: Revenue and earnings
Revenue and earnings The company generated revenue of £2,915 million in Q2 FY12, an increase of 31% over the £2,232 million for the Q2 FY11. This was an increase over Q1 FY12 of £212 million (8% improvement). For the half year revenue has increased by 25% to £5,618 million compared to H1 FY11. EBITD
Slide 10: Retail volumes by brand and region
Jaguar and Land Rover combined retailed 14,996 units in the quarter. Jaguar retail volumes for the quarter decreased by 5.7% and its market share declined by 1.8% to 16.8%. The XF 2012 Model Year, including the new 2.2 diesel engine, was launched at the end of the quarter. Land Rover retail volumes
Slide 11: Business risks, employees, liquidity and capital resources
Business risks and mitigating factors As discussed in the Annual Report 2010-11 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 raw material prices. Employees At the end of Q2
Slide 12: Financing activities, acquisitions and disposals
Cash used in financing activities was £161.8 million in quarter (H1 FY12: generated £78.4 million) compared to net cash used in financing activities of £289.4 million in Q2 FY11 (H1 FY11: £used £283.6 million). Cash from financing activities in the quarter reflects repayment of £149.9 million of sho
Slide 13: Condensed Consolidated Income Statement, three months
Condensed Consolidated Income Statement for the three months ended 30 September 2011 (Unaudited) Three months ended Three months ended 30 September 2011 30 September 2010 Non Non Trading operating Trading operating result result result result Note £m £m Total £m £m Total Revenue 2,914.9 — 2,914.9 2,
Slide 14: Condensed Consolidated Income Statement, six months
Condensed Consolidated Income Statement for the six months ended 30 September 2011 (Unaudited) Six months ended Six months ended 30 September 2011 30 September 2010 Non Non Trading operating Trading operating result result result result Note £m £m Total £m £m Total Revenue 5,618.4 — 5,618.4 4,485.2
Slide 15: Condensed Consolidated Statement of Comprehensive Income
Condensed Consolidated Statement of Comprehensive Income for the three and six months ended 30 September 2011 Six months ended Three months ended Three months ended Six months ended 30 September 30 September 2011 30 September 2010 30 September 2011 2010 (Unaudited) (Unaudited) (Unaudited) (Unaudited
Slide 16: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet at 30 September 2011 30 September 2011 31 March 2011 £m £m Note (Unaudited) (Audited) Non-current assets Investments 11 1.2 0.3 Other financial assets 106.6 68.5 Property, plant and equipment 1,463.3 1,230.8 Pension asset 19 1.0 0.9 Intangible assets 2,448.8 2,14
Slide 17: Condensed Consolidated Balance Sheet (continued)
Condensed Consolidated Balance Sheet (continued) at 30 September 2011 30 September 31 March 2011 2011 £m £m Note (Unaudited) (Audited) Equity attributable to equity holders of the company Ordinary shares 1,500.6 1,500.6 Capital redemption reserve 17 166.7 166.7 Reserves/(accumulated deficit) 16 82.0
Slide 18: Condensed Consolidated Statement of Changes in Equity
Condensed Consolidated Statement of Changes in Equity for the six months ended 30 September 2011 Capital Reserves / Ordinary redemption accumulated Total Shares reserve deficit Equity £m £m £m £m Balance at 31 March 2010 (Audited) 644.6 — (1,107.4) (462.8) Net income for the six months — — 484.3 484
Slide 19: Condensed Consolidated Cash Flow Statement
Condensed Consolidated Cash Flow Statement for the six months ended 30 September 2011 Six months ended Six months ended 30 September 30 2011 September 2010 (Unaudited) (Unaudited) £m £m Cash flows from operating activities Net income attributable to shareholders 392.1 484.3 Depreciation and amortisa
Slide 20: Condensed Consolidated Cash Flow Statement (continued)
Condensed Consolidated Cash Flow Statement (continued) for the six months ended 30 September 2011 Six months ended Six months ended 30 September 30 September 2011 2010 (Unaudited) (Unaudited) £m £m Cash flows (used in) / from financing activities Finance expense and fees paid (45.7) (33.2) Proceeds
Slide 21: Notes: Accounting policies
Notes (forming part of the condensed interim financial statements) 1 Accounting policies Basis of preparation The information for the six months ended 30 September 2011 is unaudited and does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The condensed consolid
Slide 22: Notes: Research and development, foreign exchange
Notes (continued) 2 Research and development Six months ended Six months ended Three months ended Three months ended 30 30 30 September 2011 30 September 2010 September 2011 September 2010 (Unaudited) (Unaudited) (Unaudited) (Unaudited) £m £m £m £m Total R&D costs 224.3 144.0 426.6 277.7 R&D expense
Slide 23: Notes: Finance income and expense
Notes (continued) 4 Finance income and expense Recognised in net income Three months ended Three months ended Six months ended Six months ended 30 September 2011 30 September 2010 30 September 2011 30 September 2010 (Unaudited) (Unaudited) (Unaudited) (Unaudited) £m £m £m £m Finance income 3.7 2.4 7
Slide 24: Notes: Other financial assets, inventories, taxation
Notes (continued) 6 Other financial assets - current 30 September 2011 31 March 2011 (Unaudited) (Audited) £m £m Advances and other receivables recoverable in cash 8.4 8.1 Derivative financial instruments 66.0 49.7 Other 0.7 3.7 75.1 61.5 7 Inventories 30 September 2011 31 March 2011 (Unaudited) (Au
Slide 25: Notes: Investments, other financial liabilities, provisions
Notes (continued) 11 Investments In June 2011, the company invested £750,000 to acquire a 50% stake in a joint venture advertising agency. The agency will act on an exclusive world-wide basis to provide advertising and branding support to the Jaguar brand. The arrangement has been set up to enable u
Slide 26: Notes: Provisions (continued)
Notes (continued) 13 Provisions (continued) Product warranty 30 September 2011 31 March 2011 (Unaudited) (Audited) £m £m Opening balance 503.1 476.4 Provision made during the period 160.0 332.4 Provision used during the period (150.1) (305.8) Impact of discounting 2.9 0.1 Closing balance 515.9 503.1
Slide 27: Notes: Provisions (continued)
Notes (continued) 13 Provisions (continued) Product warranty provision The group offers warranty cover in respect of manufacturing defects, which become apparent within a year and up to four years after purchase, dependent on the market in which the purchase occurred. Product liability provision A p
Slide 28: Notes: Interest bearing loans and borrowings
Notes (continued) 15 Interest bearing loans and borrowings 30 September 2011 31 March 2011 (Unaudited) (Audited) £m £m Euro MTF listed bond 1,006.9 — Loan from banks 378.9 789.5 Redeemable preference shares classified as debt 157.1 157.1 Intercompany loans payable to TMLH — 434.9 Finance lease liabi
Slide 29: Notes: Other reserves
Notes (continued) 16 Other reserves (continued) Accumulated Total deficit: Reserves / Translation Hedge Pension profit and accumulated reserve reserve Reserve loss reserve deficit £m £m £m £m £m Balance at 1 April 2010 (506.7) — (221.8) (378.9) (1,107.4) Net income for the period — — — 1,035.9 1,035
Slide 30: Notes: Employee benefits
Notes (continued) 19 Employee benefits Jaguar Cars 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 benefits of Jaguar Cars L
Slide 31: Notes: Employee benefits (continued)
Notes (continued) 19 Employee benefits (continued) The range of assumptions used in accounting for the pension plans in both periods is set out below: September 2011 March 2011 % % Discount rate 5.2 5.5 Rate of increase in compensation level of covered employees 3.6 4.0 Inflation increase 3.1 3.5 Ex
Slide 32: Notes: Commitments and contingencies
Notes (continued) 20 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 ongoing basis, with the assistance of external legal counsel wherever
Slide 33: Notes: Capital management
Notes (continued) 21 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 plans and long-te
Slide 34: Notes: Related party transactions
Notes (continued) 22 Related party transactions (continued) Compensation of key management personnel Six months ended Six months ended 30 September 2011 30 September 2010 (Unaudited) (Unaudited) £m £m Short-term benefits 6.3 3.7 30
Slide 35: Jaguar Land Rover PLC address
Jaguar Land Rover PLC Banbury Road Gaydon Warwickshire CV35 0RG 31
Slide 36: Jaguar Land Rover Results for the period ended 30 Sept 2011
Jaguar 14 LAND JAGUAR November Land ROVERRover 2011 Results for the period ended 30 Sept 2011
Slide 37: Disclaimer
Statements Disclaimer “forward-looking difference in Q2 H1 2Consolidated Government FY12 represents FY11 tointhe results this regulations, Company’s statements” presentation the of Jaguar period tax operations within Land describing from laws Rover 1and the April July include, meaning other the PLC
Slide 38: Participants
Unni Participants Group Kenneth Bennett Treasurer C. CFO Vijay 3Head Ramakrishnan Tata Jaguar Menon of Somaiya Finance Birgbauer Treasury Gregor Jaguar Motors Land Director Land &Rover Investor Rover Jaguar Relations Land Rover Tata PLC Motors
Slide 39: Key topics Agenda
Key topics Agenda Financial Looking 4Closing Q&A ahead performance Page 19 15 5
Slide 40: Financial performance
Financial Retail EBITDA Profit Free 51Cash comparisons cash and before volumes £420m, money performance flowtaxare (before 65,682 £216m, includes market compared withfinancing) units, Q2 investments compared £94m of toup FY11 £361m unfavourable 9,262 £119m, tounder £1.3bn £260m units compared IFRS o
Slide 41: Key financial metrics
Key Quarter (£ Retail Wholesale Revenues EBITDA Profit Free Cash Memo Fx 61included cash millions, option financial metrics cash 1,340 before volumes from : Ended in 420 % flow and 2,915 volumes Profit 730 unless 14.4% operating -tax 361 metrics IFRS commodity 30 (1) (‘000 610 2,232 216 before Sept
Slide 42: Significant items in the quarter
Significant Wholesale Strong Continued Less Profit Accounting 7be expected favourable before higher strong volumes improvement policy totax margin reverse foreign includes growth generally upproduct and/or 12,866 exchange in £94m underlying China requires be mix, units unfavourable more transaction
Slide 43: Retail volumes by carline, Q2
Retail Jaguar down 1,507 14,118 3,941 8,621 1,247 13,233 3,636 Land XJ XF X-Type XK 0up 42,302 4,253 3,096 52,449 Q2 8Range Defender 13,649 24% FY11 FY12 Rover 6% 49 0 13,038 volumes Rover - 8,350 Q2 5,308 FY12 - Sport Evoque 7,009 Q210,209 byFY12 vs carline Discovery 13,210 Q2 Freelander 8,883 vsFY
Slide 44: Retail volumes by brand and month
Retail Jaguar 3,758 6,712 13,233 Land July 13,287 15,721 23,441 52,449 Prior 9Change Aug year Rover 2,763 volumes - 17% (24)% Q2 Sept 4,914 13,421 FY12 - 23% Q2 Q2 (17)% by 3,328 FY12 10,774 FY12 vs 29% brand Q2 14% 5,876 24% vs-FY11 18,107 Q2 (6)% 14,118 by FY11 42,302 month
Slide 45: Retail volumes by geography, quarter
Retail 4,624 10,182 14,806 4,361 10,635 14,996 no 12,068 3,096 9,010 Q2FY11 4,117 7,951 634 5,167 5,801 1,634 9,235 10,869 up 2,725 9,108 11,833 2,331 10,127 12,458 261 2,909 3,170 278 3,091 3,369 1,757 6,985 8,742 1,533 10,351 11,884 Europe Q2 All Russia Europe(excl. China UK North Total: Land 10 J
Slide 46: Consolidated income statement summary
Consolidated Quarter (£ Revenues Material Employee Other Product EBITDA Depreciation Foreign Net Income Profit Fx Memo: included 11 millions, option finance expenses before after statement tax Ended dev. exch. cost in 420 and 2,915 costs(235)(189)(46)(445)(379)(66) tax expense(44)(21)(23)(75)(35)(40
Slide 47: Consolidated cash flow
Healthy Consolidated Quarter (£ WC Investment Other Free Changes Finance Net Cash 12 millions, change changes cash from flow &(including cash Ended cash expenses inflow from operating in debt(155)(188) unless equiv. & generation cash tang. cash 30 (before inc. operations finance and Sept flow stated
Slide 48: Key financial indicators
Sound Key 30 (£ 2011 Cash Undrawn Total 1Net 13includes millions, Sept debt financial 2011 1,340 liquidity equity financial 30 /(excl. committed uncommitted equity £50m June 1,383(43) unless 1,749 indicators 2,044 finance health for 11.5% 1,678 stated) a2,112(68) lines facility leases) lines 17.6%(6
Slide 49: Key topics Agenda
Key topics Agenda Financial Looking Closing 14 Q&A ahead performance Page 19 15 5
Slide 50: Launching C-X16 and DC100
Launching “Great C-X16 invigorate.” “Replacing DC100 -journey 15Ian Callum, GerryJaguars McGovern, to design exciting theDirector have iconic a relevant Director new always Defender ofproducts Design, been Defender of Design, isbeautiful, Jaguar Frankfurt one for ofLand Cars the theinnovative Motor
Slide 51: Other developments
Otherreceived All-new Announcement Record JLR 16 honoured developments intake RangeBig of with Rover of336 Tick a gold £355m graduate Evoque Award rating investment for launched recruits in its theEnvironmental Corporate started infrom a new, September work Responsibility state-of-the-art at Innovat
Slide 52: Summary - Going forward
Strong Summary -Going 17 continuing forward underlying themonitor to with inmarket planned FY12 financial economic roll focus investments out performance isof on: and the all-new sales in in future Q2 trends Range FY12 newclosely products RovertoEvoque balance and technologies -sales building and on
Slide 53: Key topics Agenda
Key topics Agenda Financial Looking Closing 18 Q&A ahead performance Page 19 15 5
Slide 54: Q&A
19 Q&A
Slide 55: Additional Slides
Additional Slides LAND= <ROVER
Slide 56: Consolidated balance sheet
Strong Consolidated 30 (£ Cash Other Total 21 millions, Sept & assets debt equity liabilities assets liabilities balance 31 cash (excl. March unless 7,964 1,749 6,624 equivalents balance sheet 6,215 and 4,673 finance 6,676 1,475 5,648 stated) equity 5,201 sheet 3,819 1,288 leases) 274 1,340 976 2011
Slide 57: Income statement foreign exchange detail
Income Foreign Quarter (£ Fx Forex Revaln Other Total (12) Memo: Mark-to-mkt 22 millions, hedges -(12)(12) gain 9(3) gain of statement Ended exchange other /maturing 12 /(loss)(60)(11)(48)(56) unless (loss) on 15 -(12) 30 operating Fx commodity 5fx Sept on stated) 10 options(82) 10 line for. Half -
Slide 58: Retail volumes by carline, H1
Retail Jaguar down 3,059 28,012 6,397 18,249 2,701 25,790 8,003 15,082 Land XJ XF X-Type XK 0up 26,841 87,496 8,762 18,866 22,059 H1 9,926 22,496 27,064 14,563 3,096 26,023 103,168 Freelander Range 23 Defender 10,968 18% FY11 FY12 Rover 8% 307 4volumes Rover - H1 FY12 - Sport Evoque H1 byFY12 vs car
Slide 59: Retail volumes by geography, half year
Retail 8,798 19,236 28,034 7,299 18,364 25,663 7,841 16,863 24,704 7,239 18,785 26,024 down up 1,564 10,954 12,518 3,000 17,812 20,812 6,060 20,634 26,694 4,562 21,709 26,271 507 4,986 5,493 561 6,398 6,959 3,242 14,823 18,065 3,129 20,100 23,229 Europe H1 All Russia Europe(excl. UK North China Tota
Slide 60: Wholesale volumes by carline, Q2
Wholesale Jaguar down 1,669 14,325 4,265 8,360 1,294 13,306 3,441 8,567 X-Type XK Land XJ 0up 13,122 40,809 3,766 8,785 9,921 12,296 54,694 Q2 5,116 Freelander Range 25 Defender 5,215 34% FY11 FY12 Rover 7% 31 4Rover -7,772 XF Q2volumes FY12 - Sport Evoque 6,558 Q2 FY12 vsDiscovery 12,273 by Q2 Rang
Slide 61: Wholesale volumes by carline, H1
Wholesale Jaguar down 3,044 29,780 8,764 17,889 2,455 24,649 7,167 15,016 XK Land 0up 25,961 84,555 8,136 18,193 21,609 H1 9,799 22,119 26,640 14,493 7,774 24,616 105,441 Freelander Range 26 Defender 10,656 25% FY11 FY12 X-Type Rover 17% 83 11 Rover - H1volumes FY12 XF - Sport Evoque H1XJ FY12 vsDis
Slide 62: Wholesale volumes by geography, quarter
Wholesales 4,156 9,882 14,038 4,232 10,848 15,080 down 5,145 8,193 13,338 2,780 8,948 11,728 418 4,947 5,365 1,705 9,175 10,880 2,502 8,068 10,570 2,447 13,102 15,549 245 2,985 3,230 275 3,154 3,429 up 1,859 6,734 8,593 1,867 9,467 11,334 Europe Q2 All Russia Europe(excl. China UK North Total: Land
Slide 63: Wholesale volumes by geography, half year
Wholesale 8,941 19,636 28,577 7,613 19,533 27,146 6,065 19,217 25,282 4,598 23,601 28,199 down 10,101 16,635 26,736 5,701 19,073 24,774 797 9,699 10,496 2,940 17,465 20,405 up 451 4,788 5,239 551 6,164 6,715 3,425 14,580 18,005 3,246 19,605 22,851 Europe H1 All Russia Europe(excl. China North UK Tot
Slide 64: Product details - R&D and investment
Product Details- Quarter (£ R&D Capitalised Expensed Investment 157 intangible Total 29 millions, 69product R&D expense 88 Ended and IFRS 34 assets 354 in expense 190 unless other 22 and tangible 113 30 122 12other Sept investment stated) 241 60 224 6833 and Half 366 investment 144 27 2011 other 244