Tata Motors Limited · NSE:TMCV
Tata Motors — Investor Day (March 2021)
128 slides from Tata Motors's investor day presentation, Mar 1, 2021
Slide 1: Tata Motors Group: India business Annual Analyst Engagement
(Company Logo) Tata Motors Group : India business Annual Analyst Engagement | 22nd February 2021
Slide 2: Safe harbour statement
Safe harbour statement Statements in this presentation describing the objectives, projections, estimates and expectations of Tata Motors Limited (the “Company”, “Group” or “TML”) Jaguar Land Rover Automotive plc (“JLR ”) and its other direct and indirect subsidiaries may be “forward-looking statemen
Slide 3: Agenda
Agenda Session Timing Presenter 1 Introduction & Context Setting 5 mins 2:00-2:05 - 2 Turnaround accelerated 30 mins 2:10-2:40 Guenter Butschek 3 CV –Win Decisively 45 mins 2:45-3:30 Girish Wagh 4 PV –Win Sustainably 45 mins 3:35-4:20 Shailesh Chandra 5 Financial outlook 20 mins 4:25-4:45 P B Balaji
Slide 4: Turnaround accelerated
(Company Logo) Turnaround accelerated Guenter Butschek, CEO & MD –Tata Motors (Company Logo) 4
Slide 5: From Covid to Business Continuity
From Covid 19 to Business Continuity Taking the ecosystemalong : ‘Survival -> Recovery-> Growth’ RESPONSE to pandemic Employees Mfg & Supply Chain Dealers Customers Govt./Local Authorities Community Response Rigorous Cost Reduction and Cash Conservation, Agile supply chain Employee Engagement and Up
Slide 6: Challenges to be addressed by the 'new normal'
Challenges to be addressed by the ‘new normal’ Deep and sustainable impact BS6 acceptance Corporate Average Fleet Economy (CAFÉ) Higher safety standards Growing interest in xEVsolutions Regulatory Gradual economic recovery Higher TCO, fuel prices Consumer Concerns on health and safety Conscious spen
Slide 7: Accelerating the Turnaround at Tata Motors
Accelerating the Turnaround at Tata Motors To emerge stronger out of the crisis Sales enhancement Rigorous cost reduction and bottom-line improvement Leveraging production & supply chain efficiencies Focus 2020-21 PV –Reimagining Frontend CV –Accelerating revenue growth in a rising MOP environment E
Slide 8: CV establishing supremacy with 'BSVI and beyond'
CV establishing supremacy with ‘BSVI and beyond’ Win Decisively and Responsibly Gaining market share in MHCV, recovering in ILCV, SCV and Passenger Building traction in SCV with Intra, Ace Gold, petrol, CNG Investing into future -new products, ACES, Digital Amplifying customer communication by ‘Powe
Slide 9: PV on a new high
PV on a new high Strong response to ‘New Forever’ product range Consolidating No. 3 position, claiming top 5/10 in respective segments Record volumes after 8+ years, Market share close to double digits (7.5%+) Nexon EV emerging as the undisputed leader, 500+ units/month Reimagining front end Custome
Slide 10: Building the future comprehensively
Building the future comprehensively From Turnaround to Sustainable Transformation Design ‘Impact 2.0’ language Sales & Marketing, Service Digital Transformation Dealer profitability Supply Chain Connected supply chain Strategic Sourcing, Early Supplier Involvement Engineering Engineering Efficiency
Slide 11: Intensifying the focus on ESG
Intensifying the focus on ESG We are aboutto redefine our ESG aspiration and agenda –focus towards CO2 neutral footprint *LTIFR Lost time Injury Frequency rate Frontrunner in India on GNCAP safety standards LTIFR* <0.2, 20% reduction over last 7 years, aspiration : Zero harm Safety Consistent spend
Slide 12: Welcoming Marc
Welcoming Marc To a successful future (Company Logo) 12
Slide 13: Commercial Vehicles – Win Decisively
Commercial Vehicles –“Win Decisively” Girish Wagh, President : CVBU (Company Logo)
Slide 14: Contents
Contents - The year gone by: Industry context - Journey so far - Future outlook (Company Logo) 14
Slide 15: Indian CV Industry has faced major head-winds over last two years
Indian CV Industry has faced major head-winds over last two years Key events in succession, aggravated the cyclical downturn, reducing industry volumes to FY10 levels -60% -40% -20% 0% 20% 40% 60% 0 200 400 600 800 1000 1200 FY87 FY89 FY91 FY93 FY95 FY97 FY99 FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15
Slide 16: FY21: Key challenges and our response
FY21: Key challenges and our response Concerted efforts to minimize the impact BSVI Transition COVID-19 Pandemic accentuating the downturn Challenges Response Disruptions on Demand and Supply side Technology Apprehensions Stressed profitability and cash flows Business Continuity Plan Supporting Cust
Slide 17: Interventions to navigate the downturn and subsequent recovery
Interventions to navigate the downturn and subsequent recovery Focus on growth, agility and efficiency to maximize the market opportunities Demand Generation Demand Fulfilment Cash conservation and cost reduction Focus on green-shoot microsegments and extensive on-ground market activations for BS6 p
Slide 18: Tap growth while serving the nation with agility
Tap growth while serving the nation with agility Refrigerated trucks from TML for vaccine transport Comprehensive vehicle range from ‘Insulated Vaccine Vans’ to ‘Refrigerated Vaccine trucks’ 120 vehicles already sold 300+ vehicles in pipeline (Company Logo) 18
Slide 19: Our Approach to BSVI
Our Approach to BSVI Deployment of well-crafted strategy to enhance competitiveness in BSVI Conceptualization Introduction Selling Much more than compliance Reimagined product range aligned with Product Attribute Leadership Strategy Improved TCO and profitability Value enhancers to augment product p
Slide 20: Impactful BSVI Launch to Win Decisively
Impactful BSVI Launch to “Win Decisively” Widest range of BSVI vehicles with best-in-class TCO and profitability (Company Logo) 20
Slide 21: Enhancing customer experience through Sampoorna Seva
Enhancing customer experience through Sampoorna Seva Delivering ‘Peace of mind’ for the end customers, with enhanced productivity and earnings y1 y2 Sampoorna Seva 2.0 Holistic aftermarket offering Universe of services includes Repair time assurance Breakdown assistance Insurance and accidental repa
Slide 22: Continued progress in dealer profitability improvement
Continued progress in dealer profitability improvement Identification of opportunities Implementation Review and Monitoring CV dealers achieving cash positive performance Joint exercise between TML and Channel Partner Four Pronged Approach Profitability Model dashboard Average breakeven volume for d
Slide 23: Digitalization roadmap to address customer needs
Digitalization roadmap to address customer needs Stakeholder centric digital transformation roadmap in place; execution underway Product configurator ‘Go to market’ excellence process Financier integration Digi VOR (for faster spare parts distribution) Dealer Profitability Portal Digital solutions a
Slide 24: Continued to lead on customer facing metrics
Continued to lead on customer facing metrics Sustaining and improving performance across all areas FY17 FY19 FY20 +57 +61 +65 (Graphic) (Excel Chart) (Company Logo) 24
Slide 25: FY21 YTD Performance: Financials
5.2% 2.2% 3.2% 8.0% YTD Dec'19 YTD Dec'20 Q2FY21 Q3FY21 FY21 YTD Performance: Financials Strong Q-o-Q improvement across all key parameters 271.3 150.3 10.7 55.0 84.6 YTD Dec'19 YTD Dec'20 Q1FY21 Q2FY21 Q3FY21 25.9 16.5 1.4 5.5 9.6 YTD Dec'19 YTD Dec'20 Q1FY21 Q2FY21 Q3FY21 1.0% -4.8% -3.8% 3.6% YTD
Slide 26: FY21 YTD Performance: Market shares
FY21 YTD Performance: Market shares TATA MOTORS Connecting Aspirations Tata Motors CVBU Domestic Volumes 279.6 173.3 YTD Jan'20 YTD Jan'21 9.5 61.1 138.5 173.3 3M 6M 9M YTD Jan'21 Market Share-Overall 45.1% FY19 43.0% FY20 38.9% FY21 29.6% 36.7% 38.9% FY21 3M 6M 9M MHCV 55.0% FY19 57.4% FY20 59.2% F
Slide 27: CV International Business
CV International Business TATA MOTORS Connecting Aspirations Current position Continued Strong presencein SAARC Significant presence across Africa Top 3 brands in 10 markets in >6T segment) Beginning to make progress in the ASEAN and LATAM Exited low contribution markets Australia, Chile, Turkey App
Slide 28: Building competitive cost structure to lower the breakeven
Building competitive cost structure to lower the breakeven TATA MOTORS Connecting Aspirations Material cost reduction Teardown and benchmarking Advanced VAVE, Digital VAVE (DiVE) Target costing, Should cost analysis Blue sky thinking workshops Commercial cost reduction Material cost reduction of 4 -
Slide 29: Looking ahead
TATA MOTORS Connecting Aspirations Looking ahead ©Copyright, Confidential, Tata Motors Limited 29
Slide 30: Factors influencing immediate outlook
Factors influencing immediate outlook TATA MOTORS Connecting Aspirations 1 Infrastructure Pushby the Government (NIP) 2 Improved Customer Sentiments 3 Urban Demand revival and Rural stability 4 E-commerce Penetration and Industrial activity Tailwinds Challenges 1 Supply side constraints 2 Commodity
Slide 31: Indian CV industry immediate growth outlook
Indian CV industry immediate growth outlook TATA MOTORS Connecting Aspirations SCV ILCV CV Passenger M&HCV TIV FORECAST FY19: 1.06 M 245.7K Q1 273K Q2 247.6K Q3 299.7K Q4 FY19 FY20: 743 K (-31%) 219.8K Q1 171K Q2 199K Q3 150.1K Q4 FY20 FY21: 577-589K (-22-20 %) 32.7K Q1 137.3K Q2 196.7K Q3 219K Q4 3
Slide 32: We remain committed to competitive growth
We remain committed to competitive growth TATA MOTORS Connecting Aspirations SCV and Pick up segment Leverage Ace Petrol at a price point equivalent to BS4; and reinforce Ace diesel brand equity Build on initial success of Intra by introducing additional variants Drive product superiority of Yoddha
Slide 33: Will expand network to drive higher reach and penetration
Will expand network to drive higher reach and penetration TATA MOTORS Connecting Aspirations new formats micro dealers for SCV& PU with lower breakeven point Authorized representative of dealers (ARDs) Rural Focus Additional deployment of Tata Grameen Mitras (TGMs) TATA GURU: Tie up with local Mecha
Slide 34: Focus on other growth drivers to derisk cyclicality
Focus on other growth drivers to derisk cyclicality Service and Spare Penetration TATA OK Used Vehicle Business International Business TATA MOTORS prolife rebuilt to last Aggregate Business New Business Models (Leasing, Fleet Management Solution) Revenue share has gone up from 16.8% (FY19) to 22.7%
Slide 35: Areas of focus over the longer term
Areas of focus over the longer term TATA MOTORS Connecting Aspirations Continued cost reduction, pivoted to customer value BS6 RDE development, going beyond mere compliance to improve competitiveness Lead in alternate fuels, in line with Government priorities Optimise each cost element to reduce bre
Slide 36: Electrification drivers and key segments
Electrification drivers and key segments TATA MOTORS Connecting Aspirations Key drivers Emerging Commercial EV Segments 1 Tightening Emissions 2 Policy incentives 3 Pull from Early adopters e-Auto Shared Cabs Buses SCVs Last mile connectivity will be the next hot spot. To share plans at an appropria
Slide 37: Electrification - Successful participation and operations of EV buses
Electrification - Successful participation and operations of EV buses TATA MOTORS Connecting Aspirations EV Bus Portfolio Tata Ultra Urban 9/9m EV Tata Urban 9/12m EV Tata Starbus 4/12m LE EV Continues to lead in the Electric bus Lucknow Jammu & Srinagar Delhi NCR Ahmedabad Mumbai PUNE assam Indore
Slide 38: Our working plans
Our working plans TATA MOTORS Connecting Aspirations Win Decisively with our extensive product range and continue to lead the market developments Land the benefits of BSVI with our customers Achieve double digit EBITDA Long term capex at 3%-4% of revenue Strong positive FCF ©Copyright, Confidential,
Slide 39: Thank You
TATA MOTORS Connecting Aspirations Thank You ©Copyright, Confidential, Tata Motors Limited 39
Slide 40: Passenger Vehicles: Win Sustainably
TATA MOTORS Connecting Aspirations Passenger Vehicles : “Win Sustainably” Shailesh Chandra, President : PV & EVBU
Slide 41: Strong profitable growth in FY21
Strong profitable growth in FY21 TATA MOTORS Connecting Aspirations Industry volumes 2,360 YTD Jan 20 12% 2,077 YTD Jan21 Sales numbers in ‘000 TML PV Volumes 114 YTD Jan 20 45% 165 YTD Jan 21 TML PV market shares 5.1% 5.7% 6.3% 4.8% 7.8% FY17 FY18 FY19 FY20 9MFY21 PV EBITDA margins (9.4%) 0.5% 3.8%
Slide 42: Excellent response for the New Forever range
Excellent response for the “ New Forever” range TATA MOTORS Connecting Aspirations The portfolio of products, well positioned in the growing segments, enabling podium finish ©Copyright, Confidential, Tata Motors Limited 42
Slide 43: All the products witnessing a steep jump in sales
All the products witnessing a steep jump in sales TATA MOTORS Connecting Aspirations TIAGO Avg/Month Volumes 4122 6237 FY’20 FY’21, Q3 Onwards TIGOR Avg/Month Volumes 837 1611 FY’20 FY’21, Q3 Onwards NEXON Avg/Month Volumes 3605 6594 FY’20 FY’21, Q3 Onwards HARRIER Avg/Month Volumes 1071 2319 FY’20
Slide 44: Nexon EV and Altroz - all round appreciation
Nexon EV and Altroz – all round appreciation TATA MOTORS Connecting Aspirations TATA MOTORS Connecting Aspirations tata another feather in our cap! Nexon ev the electric suv powered by ziptron gags ELECTRIC CAR OF THE YEAR AWARD MOTOR 2021 PRESENTED BY MOTOR VIKATAN PULSATING MAGAZINE OF TAMIL NADU
Slide 45: Transformative actions to deliver step change in performance
Transformative actions to deliver step change in performance TATA MOTORS Connecting Aspirations Agile Marketing Actions Channel Management Transformation Smart Product Interventions Demand-supply Synchronization Focused actions in identified micro-markets Sales team empowerment These structural acti
Slide 46: Foundational pillars identified to Win Sustainably
5 foundational pillars identified to “Win Sustainably” TATA MOTORS Connecting Aspirations Brand Re-imagining Front End Product Strategy Manufacturing & Quality Leadership Structural Margin Improvement Mindset-Winning Sustainably in PV & Proactively in EV space These pillars will drive future success
Slide 47: Brand
1 Brand Consistent increase in brand indicators TATA MOTORS Connecting Aspirations Consistent increase in the NPS with sharp decrease in detractors and passives 23 4 27 25 7 32 28 4 32 NPS Promotors Detractors 2019 2020 2021 Mother Brand – Brand Health Track, by Kantar-Dec’-Jan’21 The brand has grow
Slide 48: Product Strategy: Approach to product launches
2 Product Strategy Approach to product launches TATA MOTORS Connecting Aspirations Smart product intervention and timely refreshes New products to enhance addressable market Integration of new technology features Strengthening association with stylish Design, Safety and New technologies Mainstream i
Slide 49: Product Strategy: 60% market coverage
2 Product Strategy 60% market coverage with strong positions in growing segments TATA MOTORS Connecting Aspirations Segments Sub- Segments Hatch Entry Midsize Tiago #3 with MS 17% High Premium Altroz #3 with MS 18% Sedans Entry Tigor #3 with MS 6% Midsize Executive Premium SUV Sub-Compact HBX- Launc
Slide 50: Product Strategy: Future technologies
2 Product Strategy Future technologies to strengthening our brand association TATA MOTORS Connecting Aspirations World class design Exciting Proportions Expressive Surfaces Extra-Ordinary Details Aggressive Stance Road Presence • Continuous evolution of new age IMPACT ful design with focus on improv
Slide 51: Product Strategy: aspirational features in accessible variants
2 Product Strategy We will bring aspirational features in accessible variants TATA MOTORS Connecting Aspirations • Harrier CAMO which pays homage to the spirit & grit of the armed forces Sunroof • Harrier XT+ with best in segment Panoramic sunroof AltrozXM+ Android auto and Apple car play connectivi
Slide 52: Product Strategy: The New Safari
2 Product Strategy TATA MOTORS Connecting Aspirations The New Safari is launched and receiving enthusiastic response Safari Launch Clip
Slide 53: Product Strategy: HBX launch in CY21
2 Product Strategy TATA MOTORS Connecting Aspirations HBX is scheduled to be launched in CY21 Copyright, Confidential, Tata Motors Limited 53
Slide 54: Reimagining Front-End (1/2)
3 Reimagining Front-End TATA MOTORS Connecting Aspirations Front-end is being reimagined across 4 key planks (1/2) 1. Sales Strategic interventions to drive sales growth •Micro market specific sales & network strategy •Increasing % of exchange •2X sales growth in rural sales •Digital front-end 2. De
Slide 55: Reimagining Front-End (2/2)
3 Reimagining Front-End Front-end is being reimagined across 4 key planks (2/2) TATA MOTORS Connecting Aspirations 3. Aftersales • Digitalization to key processes to ensure on time delivery and fairness of charges •Improvement in competitiveness amongst Dealer through ranking program • Creation of A
Slide 56: Structural margin improvement
4 Structural margin improvement Multiple initiatives undertaken to structurally improve margins TATA MOTORS Connecting Aspirations VAVE Product Mix Commercial reduction Non Veh Business • Consistently deliver margin improvement through structures initiatives like-Feature rationalization, alternate s
Slide 57: Manufacturing and Quality leadership: capacity
5 Manufacturing and Quality leadership Leveraging existing assets to cater to increasing demand TATA MOTORS Connecting Aspirations Key Highlights - 550K installed capacity with optimum balancing across locations - Debottlenecking of capacity - ~120% increase in in Jan’21 vis-à-vis monthly average pr
Slide 58: Manufacturing and Quality leadership: quality mind-set
5 Manufacturing and Quality leadership Dial-up quality mind-set across value chain TATA MOTORS Connecting Aspirations Supplier Centric In-house Customer centric CFT -Cohesive Functional Teams -with focus on speed of resolution Crusade on Supplier Quality Robust Software Maturation STOP Project “Stop
Slide 59: EV Business
TATA MOTORS Connecting Aspirations EV Business Copyright, Confidential, Tata Motors Limited 59
Slide 60: Tata Motors has established itself as a leader in EV market
Tata Motors has established itself as a leader in EV market TATA MOTORS Connecting Aspirations Sales Performance (as of Jan’21) TIV TML Market Share 4180 72% 47% 2811 1946 18% 11% 1235 131 349 1325 3022 FY18 FY19 FY20 YTD FY 21 NexonEV 1 year Clip Customer Profile ( Nexon EV) Customer segment Car ow
Slide 61: Comprehensive solutions are being offered to the customer
Comprehensive solutions are being offered to the customer TATA MOTORS Connecting Aspirations Product Nexon EV with cert. range of 312km •#1 EV in India •Won EESL tender for 150 Evs Tigor ER EV with cert. range increase from 140 km to 213 km •#1 EV for fleet segment Network •Largest EV Ready network
Slide 62: Multiple initiatives to establish TML as a credible EV leader
Multiple initiatives undertaken to establish TML as a credible EV leader TATA MOTORS Connecting Aspirations Create Awareness & Aspiration • State of the art EV tech brand Ziptronlaunch • Targeted TVCs and Print campaign • An immersive drive experience of India’s own Electric SUV –the Tata Nexon EV •
Slide 63: Tata Group EV ecosystem collaboration in place
Tata Group EV ecosystem collaboration in place TATA MOTORS Connecting Aspirations Will support phased localization and charging infrastructure penetration TATA POWER • 355+ public chargers inter & Intra -cities& plan to take it to 700 by mid of FY22 • Home charging installation support in all cities
Slide 64: Strong strategy to retain competitive advantage in EVs
TML has strong strategy to retain competitive advantage in EVs TATA MOTORS Connecting Aspirations Products • Portfolio of offering with different body styles and driving ranges • India specific Product specs and differentiated value proposition • Transition to Modular Multi-energy platform Capabilit
Slide 65: Our working plans
Our working plans Podium finish TATA MOTORS Connecting Aspirations •Amongst Top players in India •Double digit Market share • Leader in “Future Car” SUVs & EVs segments Financial Growth Model •Healthy double digit Contribution • Established financial viability through reduced cash break even. •Contr
Slide 66: Thank You
TATA MOTORS Connecting Aspirations Copyright, Confidential, Tata Motors Limited Thank You 66
Slide 67: Outlook
TATA MOTORS Connecting Aspirations Outlook PB Balaji, Group CFO –Tata Motors
Slide 68: TML India Business: Sequential recovery in revenue
TML India Business Sequential recovery in revenue Margins bounce back; Cost savings on track 62,203 43,928 26,986 2,687 9,668 14,631 FY19 FY20 9M’21 Q1 Q2 Q3 Margins bounce back; Cost savings on track EBIT EBITDA ₹ Cr 8.3% 0.5% 2.6% 6.8% FY19 3.8% FY20 -7.2% Q1’21 -29.3% Q2’21 -6.8% Q3’21 0.3% Both
Slide 69: Summarising our working plans
Summarising our working plans Commercial Vehicles Double digit EBITDA margin Long term capex of 3-4% of revenue Strong positive FCF Passenger Vehicles High single digit EBITDA in next 3 years Long term capex at 5%-6% of revenue FCF Breakeven by FY23 and positive FCF thereafter We remain committed to
Slide 70: Actions underway to improve credit ratings
Actions underway to improve credit ratings Rating Agencies Long Term Rating Moody’s B1 / Negative S&P B/ Negative CRISIL AA-/Negative ICRA AA-/ Stable CARE AA-/ Negative Step towards improving credit matrix Operating performance & contribution margin improvement Optimization of cost base Capex prior
Slide 71: Roadmap to zero net auto debt
Roadmap to zero net auto debt Lease 5.9 Lease 6.0 Lease 6.0 not to scale 42.3 48.7 Lease 6.0 31-Mar 31-Dec-20 31-Mar-21 FCF Divestments Equity (if required) FY24 Operating cash-flows, divestments to contribute majorly towards debt reduction TATA MOTORS Connecting Aspirations Copyright, Confidential,
Slide 72: Thank You
Thank You Annual Analyst Engagement | 22nd February 2021 TATA MOTORS Connecting Aspirations
Slide 73: Jaguar Land Rover Investor Day
JAGUAR LAND ROVER INVESTOR DAY | 26 FEBRUARY 2021
Slide 74: Disclaimer
Disclaimer JAGUAR LAND ROVER 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 app
Slide 75: Jaguar Land Rover Reimagine
JAGUAR LAND ROVER REIMAGINE 3
Slide 76: Agenda
Topic presenter start time 1 welcome bennett birgbauer group treasurer 12.00 5 mins 2 introduction thierry bollore chief executive officer 12.05 5 mins 3 modern luxury by design prof gerry mcgovern obe chief creative officer 12 10 15 mins 4 reimagine thierry bollore chief executive officer 12.25 30
Slide 77: Thierry Bolloré, Chief Executive Officer
Thierry Bolloré Chief Executive Officer logo 5
Slide 78: Two iconic aspirational brands
Logo Two iconic aspirational brands Strong heritage, modern desirable luxury products Land Rover Defender 90 2020 Jaguar E-Type Series 1 Roadster 1967 Land Rover Series I 1948 Jaguar F-TYPE 2020 6
Slide 79: The creator of the world's most desirable luxury vehicles
Logo The creator of the world’s most desirable luxury vehicles for the most discerning of customers 7
Slide 80: Logo
Logo 8
Slide 81: Three pillar strategy
Logo three pillar strategy range rover discovery defender design engineering integrity refinement versatility durability leadership leadership leadership leadership leadership leadership leadership leadership leadership -design and capability our unique and compelling combination 9
Slide 82: Land Rover brand attributes
Logo 10 land rover brand attributes world’s most luxurious suvs land rover four key elements modernity relevance sustainability emotionally engaging peerless character elevation of the spirit delightful desirability considered lightweight innovative sophisticated intuitive Refined sanctuary sense of
Slide 83: Compelling & desirable portfolio
Logo 11 compelling & desirable portfolio
Slide 84: Behavioural journey and experience
Logo 12 behavioural journey and experience reflective Unwavering advocacy emotional connection
Slide 85: Logo
Logo 13
Slide 86: Jaguar vision
Logo 14 jaguar vision 1 modernise & reimagine jaguar in the luxury space target wealthier younger urban creatively minded group 3 deliver experiences that create emotional engagement 4 all electric cars from 2025 5 customer service focus the all electric modern luxury brand reimagine jaguar
Slide 87: Jaguar brand attributes
Logo 15 jaguar brand attributes renaissance to emerge as a pure electric brand from 2025 jaguar four key elements alluring human physical ingenious connected art luxurious spirited crafted aspirational diverse creative dramatic distinctive exuberant pure refined sophisticated desirable modern
Slide 88: Modern luxury by design
Modern luxury by design logo 16
Slide 89: Jaguar Land Rover's Reimagine Strategy
Logo 17 Jaguar Land Rovers Reimagine Strategy Brands-Responsible modern luxury by design Products Worlds most desirable luxury cars and services Architectures & Powertrain Electrified simplified flexible Collaboration Synergies with Tata and other partnerships Footprint-Retain right size repurpose a
Slide 90: The Reimagine strategy addresses key challenges facing the business
Logo 18 the reimagine strategy has been designed to address the key challenges facing the business external challenges internal challenges covid-19 brexit emissions compliance electrification jaguar performance high operating leverage & high variable costs product range proliferation & launch conges
Slide 91: Reimagine is targeting faster growing luxury segments
Logo 19 reimagine is targeting faster growing luxury segments source: ihs december 2020 jlr reimagine segments include suv 3-5 and other future jaguar target segments global cagr fy19 27 regional cagr fy19 27 bar graph 0.5 2.2 2.81.6 5.8 1.4 1.1 1.4 0.9 2.3 total industry volumes current segments re
Slide 92: Reimagine will focus on increasing share in most profitable segments
Reimagine will focus on increasing share in these most profitable segments fy21 12 18 7 15 2 1 9 16 total market share fy26 strongest profitability cars e.g. Range rover strong profitability cars e.g. Velar lower profitability cars e.g. Xe new modern luxury cars expected to drive growth in these seg
Slide 93: Significant opportunity to grow share in China, UK and Europe
Significant opportunity to grow share of our more profitable products in china uk and europe fy21 fy26 market share china 3 12 11 15 36 58 45 45 11 21 14 27 7 8 9 13 9 15 10 21 strongest profitability carsuk europe n. America overseas e g range rover e.g. Velar enhanced by introduction of ema produc
Slide 94: Phase out of pure ICE variants by FY26
Phase out of pure ICE variants by FY26 with total BEV mix rising to over 60 by FY30 JLR EV MIX CE 3 3 MHEV HEV PHEV BEV21 73 20 15 65 60 10 30 fy20 fy26 fy30 logo 22
Slide 95: Future Land Rover showroom
Logo 23 future land rover showroom delivering modern luxury through its 3 families 6 bev variants in the next five years defender discovery range rover suv5 suv 4 suv3 defender discovery discovery sport range rover range rover sport velar evoque
Slide 96: Architectures to be rationalised
Architectures to be rationalised with 3 new electric first architectures with range of electric options for both brands legacy modular longitudinal architecture electrified ice and bev propulsion flexibility includes range rover, range rover sport from fy22/fy23 electrified modular architecture bev
Slide 97: Modular longitudinal architecture (MLA) flexible propulsion platform
Logo 25 modular longitudinal architecture mla flexible propulsion platform bev and electrified ice for our large suvs electrified ice phev new range rover sport the most capable and dynamic sports suv new range rover the most capable and refined land rover ever bev mhev hev
Slide 98: Electrified Modular Architecture (EMA) Native BEV Architecture
Logo 26 Electrified Modular Architecture EMA Native BEV Architecture Engineered with simplicity at its heart Native BEV architecture agnostic to cell chemistry Flat floor maximising cabin space Future-proofed technology to deliver best in class performance Engineered around the battery the highest v
Slide 99: EMA integrated electrified compact ICE options
Logo 27 ema integrated electrified compact internal combustion engine options modern duality for mid and smaller suvs and significant cost savings rationalising multiple internal combustion engines to one simplified electrified compact ice eliminating diesel and costly after-treatment systems hybrid
Slide 100: Jaguar pure BEV dedicated architecture
Logo 28 jaguar pure bev dedicated architecture a design led solution a design led solution modern luxury by design alluring human physical ingenious connected art luxurious spirited crafted aspirational diverse creative dramatic distinctive exuberant pure refined sophisticated desirable modern
Slide 101: Electrified vehicle technology
Electrified vehicle technology FUTURED BATTERIES ELECTRIC DRIVE UNITS HYDROGEN TECHNOLOGY – Future-proofed battery pack -agnostic to cell chemistry – – – – – – – Fully integrated power electronics JLR in-house software development for battery control module, enabling system optimization JLR designed
Slide 102: Electrical Vehicle Architecture continuum
Jaguar Land Rover’s Electrical Vehicle Architecture continuum Always on, Always connected, Always up-to-date DOMAIN BASED ARCHITECTURE, ENABLING LATEST TECHNOLOGY SIMPLIFICATION, ENABLING COST & WEIGHT OPTIMISATION State-of-the-art, domain based Electrical Vehicle Architecture with Ethernet backbone
Slide 103: New architectures deliver c.80% of volume by FY27
New MLA, EMA and pure-BEV architectures deliver c.80% of total Jaguar Land Rover volume by FY27 100% Sales D6a & D7e D7a D7u PTA D7x Jaguar pure-BEV EMA MLA FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 REIMAGINE
Slide 104: Reimagine electrification timeline
Reimagine electrification timeline Fast electrification across models and new architecture roll out MLA architecture introduced 1stBEV & new EMA architecture introduced Total of 6 BEVs BEV available on all models sales BEV 60% 100% sales zero tailpipe emission vehicles Net-zero carbon emissions Jagu
Slide 105: JLR has established a strong partnership ecosystem
JLR has established a strong partnership ecosystem Supports a strong foundation of technology, knowledge and global reach FUTURE MOBILITY & AUTONOMY -Driving Systems & Technology EV SERVICES & NEXT GENERATION TECHNOLOGIES World 1sthigh-power (50KWh) wireless charging technology on I-PACE fleet Strat
Slide 106: Focused, data-driven collaborations with global industry leaders
Focused, data-driven collaborations with global industry leaders Future partnerships to enhance competencies, optimise capital allocation & speed to market WITHIN TATA GROUP Broaden value potential of wider Tata Group MOTORS CONSULTANCY SERVICES TECHNOLOGIES COMMUNICATIONS ADAS Establish a broader,
Slide 107: Services strategy
Our services strategy is underpinned by our established InMotionactivities and expanding with digital offerings. This will be core to the future of Jaguar Flexible car subscription service -FY21 - UK growth 750%-FY22 - global expansion - Direct customer relationships -On demand access; 5-star servic
Slide 108: Efficiency of focus
Efficiency of focus Right-sized footprint and a single-minded, collaborative culture MANUFACTURING CAPACITY REDUCTION OF 25% OVER 5 YEARS CLARITY OF PURPOSE Rationalise non-manufacturing facilities Consolidation of UK warehouses £20m p.a. cost saving 50+ leases exited globally £18.5m p.a. cost savin
Slide 109: Plan for CO2 compliance
Company Logo and Country Flag Logo Plan for CO2compliance 2019 2020 2021 2022 2023 2024-29 ü £35m Fines ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü Jaguar Land rover Reimagine 37
Slide 110: Net Zero carbon emissions by 2039
Company logo Net Zero carbon emissions by 2039 A sustainability rich reimagination of modern luxury BEVs on all models by 2030 -Zero tailpipe emissions by 2036 Clean Hydrogen fuel cell test mules Responsible sourcing Reduction on operational CO2 Net zero carbon emissions by 2039 across our supply ch
Slide 111: Refocus
Company Logo Refocus frank Ludwig chief transformation officer 39
Slide 112: Refocus brings together existing and additional activity
Company Logo Refocus brings together existing and additional activity from across the organisation to deliver value, address pain points and find efficiencies TRANSFORMATION OFFICE QUALITY PROGRAMME DELIVERY & PERFORMANCE DELIVERED COST PER CAR END-TO-END SUPPLY CHAIN CUSTOMER & MARKET PERFORMANCE C
Slide 113: Refocus builds on the success of Charge+
Company logo Refocus builds on the success of Charge+ and is driven directly by the CEO –Builds on success of Charge+ – Clear ownership, goals & tracking – Cross-functional work at all levels –Driven directly by CEO – Cross-functional mentorship – Enabled by InDigital – Chief Transformation Officer
Slide 114: InDigital is the central engine for digital initiatives
Company logo InDigital is the central engine for delivering digital initiatives, enabled by IT, with prioritisation driven by the Refocus pillars – Harnessing capability which has already enabled Charge + savings, e.g. 100 person analytics and intelligent automation Centre of Excellence delivering >
Slide 115: Refocus will deliver 3% incremental EBIT
Company logo Refocus will deliver 3% incremental EBIT in our journey to double-digit margins We have stabilised the business to provide a profitable core, delivering 4% EBIT margin and break-even cashflow Refocus will drive and underpin further profitability Today Within 3 years, £2bn of value Withi
Slide 116: Reimagine Financial Outlook
Company logo Reimagine FINANCIAL OUTLOOK Adrian Mardell Chief Financial Officer 44
Slide 117: Reimagine will enable JLR to achieve its financial potential
Company logo Reimagine will enable JLR to achieve its financial potential –Encouraging turnaround from weak FY19, despite Covid –£6b of cash and profit improvements from Project Charge –Significant improvement in China business and quality of sales –Breakeven reduced from c. 600k units to c. 400k un
Slide 118: Environment remains challenging
Company logo Environment remains challenging Brexit: Bureaucracy, supply chain frictions Covid-19: new variants and vaccination roll out Emissions compliance & electrification Foreign Exchange impact of stronger pound Reimagine 46
Slide 119: JLR turnaround plan delivers
JLR turnaround plan delivers Charge+, China and COVID sales recovery driving improvement (1,746) (604) (415) 1,469 (816) (43) (5) 105 (1,570) 463 562 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Free cash flow(264) (90) (273) 269 (383) 166 318 (494) (413) 65 476 (2.7)
Slide 120: Lifetime Charge savings
Company logo Lifetime Charge savings £6b Delivering cash and ongoing profit improvements £2.7b Investment savings £1.0b £2.0b Cost & Profits improvements Total Charge savings by Q4 FY21 £5.7b Working capital efficiencies £0.2b £0.2b £0.4b Forecast charge savings in Q4 FY21 Charge savings delivered t
Slide 121: Significant China recovery
Company logo Significant China recovery from FY19 and Covid Underpinned by improving quality of sales and dealer profitability -17% -17% -11% FY19 FY20 FY21YTD 2.2 1.7 1.5 FY19 FY20 FY21YTD 72% 87% 93% FY19 FY20 FY21YTD + 35% -32% + 30% (0.4)% (1.3)% 0.9% CY 2019 FY20 FY21YTD RETAILER RETURN ON SALE
Slide 122: Cash flow break-even reduced to c. 400k units
Company logo Cash flow break-even reduced to c. 400k units Transformation supported by Charge and Refocus 425 450 500 550 575 600 500 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Units 000’s / £mils Wholesales illustrated reflect approximate break-even levels 400 –450k wholesales break-even range Wh
Slide 123: Future cash flow to achieve net cash from FY25
Company logo 3,433 3,649 3,772 3,413 3,276 2,514 2,535 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Future cash flow to achieve net cash from FY25 with investment significantly reduced to target £2.5b £ mils Operating cash flow before investment defined as free cash flow less total product & other i
Slide 124: One-time restructuring charges for Reimagine
Company logo One-time restructuring charges for Reimagine Including c. £1b non-cash write-off of prior investments FY22 Cash flow Non-cash asset write-offs Reorganisation costs Q4 FY21 Income statement c. £1b Total impact c. £0.5b c. £1.5b c. £0.5b - c. £0.5b –Exceptional one-time non-cash write dow
Slide 125: Targeting ≥10% EBIT margin by FY26
Company logo Targeting ≥10% EBIT margin by FY26 Driven by Refocus and Reimagine architecture strategy For illustrative purposes only -not to scale Expect >6% margin improvement (3% from Refocus and ≥3% from new architectures) H2 FY21 From FY26 FY23 FY25 FY26 FY22 FY24 Quality of sales MLA EMA Jaguar
Slide 126: Sales volume and financial targets
Company Logo Sales volume and financial targets Sales, profits and cash flow improving FY26 Key metrics FY21 FY22 *Excluding exceptionals Revenue Not guided Increasing > £30b Increasing Net cash / (Net debt) Negative Negative Positive 0 EBIT margin Positive ≥10% ≥4% Positive PBT* throughout ≥7% Free
Slide 127: Strong liquidity profile
Company logo Strong liquidity profile £6.1b total liquidity pro-forma end December 4,196 - 400 766 1,035 513 900 366 476 4,457 235 271 688 104 586 1,884 500 1,935 undrawn RCF 1,935 undrawn RCF - TotalLiquidity CY21 CY22 CY23² CY24 CY25 CY26 CY27 CY28 TotalDebt Bonds Bank facilities Leases (IFRS16) D
Slide 128: Sustainable profit growth; net cash from FY25
Company logo Sustainable profit growth; net cash from FY25 Focused luxury portfolio and new architectures IMPROVED PROFIT IMPROVED CASHFLOW NET CASH PRODUCTS Target stronger capital structure, and maintain strong liquidity –Modern luxury by design –MLA flex platform –EMA BEV first –Jaguar Pure BEV –