Q3 FY12 Results Review Press Meet
14th February, 2012
INVESTOR RELATIONS
Statements in this presentation describing the objectives, projections, estimates and expectations of the Company i.e. Tata Motors Ltd and its direct and indirect subsidiaries and its associates may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes and incidental factors Q3 FY12 represents the period from 1st October 2011 to 31st December 2011 Q3 FY11 represents the period from 1st October 2010 to 31st December 2010 Q2 FY12 represents the period from 1st July 2011 to 30th September 2011 9m FY12 represents the period from 1st April 2011 to 31st December 2011 9m FY11 represents the period from 1st April 2010 to 31st December 2010 Financials contained in the presentation are in Indian GAAP
INVESTOR RELATIONS
Financial Highlights
Standalone Business
Consolidated financials
JLR
Standalone financials
Other Subsidiaries
Way Forward
INVESTOR
RELATIONS
Tata Motors Consolidated P&L (Unaudited) For the Quarter ended December 2011 (Y-o-Y)
Rs Crores Q3 FY12 Net Revenue ^ EBITDA ^ EBITDA margin Profit before exceptional items & tax Exceptional items PBT PAT
# *
USD million @ % change 44.0% 50.4% 70 bps 68.7% NM 64.7% 40.5% 65.5% Q3 FY12 8,530.0 1,361.2 16.0% 877.9 (31.0) 846.9 641.8 1,114.0 Q3 FY11 5,925.7 905.3 15.3% 520.2 (6.2) 514.1 456.9 673.1
Q3 FY11 31,441.5 4,803.4 15.3% 2,760.4 (32.7) 2,727.7 2,424.4 3,571.5
45,260.3 7,222.7 16.0% 4,658.1 (164.3) 4,493.8 3,405.6 5,911.0
Cash Profit
Continued strong performance of JLR business drives profitability
^ Excludes Other Income # After Minority Interest and share of Profit/(loss) in respect of associate companies. * Cash Profit = EBITDA + Other Income Product development expenses - Net Interest paid - Tax Paid @ At conversion rate of USD 1 = 53.06 INR. For reference only.
INVESTOR RELATIONS 4
Tata Motors Consolidated P&L (Unaudited) For the Quarter ended December 2011 (Q-o-Q)
Rs Crores Q3 FY12 Net Revenue ^ EBITDA ^ EBITDA margin Profit before exceptional items & tax Exceptional items PBT PAT
# *
USD million @ % change 25.0% 50.0% 270 bps 72.0% NM 98.0% 81.4% 60.8% Q3 FY12 8,530.0 1,361.2 16.0% 877.9 (31.0) 846.9 641.8 1,114.0 Q2 FY12 6,822.0 907.5 13.3% 510.5 (82.7) 427.8 353.8 692.7
Q2 FY12 36,197.5 4,815.4 13.3% 2,708.9 (439.0) 2,270.0 1,877.3 3,675.6
45,260.3 7,222.7 16.0% 4,658.1 (164.3) 4,493.8 3,405.6 5,911.0
Cash Profit
^ Excludes Other Income # After Minority Interest and share of Profit/(loss) in respect of associate companies. * Cash Profit = EBITDA + Other Income Product development expenses - Net Interest paid - Tax Paid @ At conversion rate of USD 1 = 53.06 INR. For reference only.
INVESTOR
RELATIONS
Tata Motors Consolidated P&L (Unaudited) For the 9 months ended December 2011 (Y-o-Y)
Rs Crores 9m FY12 Net Revenue ^ EBITDA ^ EBITDA margin Profit before exceptional items & tax Exceptional items PBT PAT
# *
USD million @ % change 32.1% 27.5% (50 bps) 30.7% NM 21.0% 9.7% 33.2% 9m FY12 21,625.8 3,113.7 14.4% 1,841.3 (124.4) 1,716.8 1,372.5 2,386.2 9m FY11 16,366.5 2,442.4 14.9% 1,408.3 10.1 1,418.4 1,250.7 1,791.6
9m FY11 86,840.9 12,959.5 14.9% 7,472.3 53.6 7,525.9 6,636.1 9,506.2
114,746.6 16,521.4 14.4% 9,769.8 (660.3) 9,109.6 7,282.5 12,661.1
Cash Profit
^ Excludes Other Income # After Minority Interest and share of Profit/(loss) in respect of associate companies. * Cash Profit = EBITDA + Other Income Product development expenses - Net Interest paid - Tax Paid @ At conversion rate of USD 1 = 53.06 INR. For reference only
INVESTOR
RELATIONS
Tata Motors standalone P&L (Audited) For the Quarter ended December 2011 (Y-o-Y)
Rs Crores Q3 FY12 Net Revenue ^ EBITDA ^ EBITDA margin Profit before exceptional items & tax Exceptional item # PBT PAT Cash Profit
*
USD million @ % change 18.2% -26.3% Q3 FY12 2,513.7 169.1 6.7% 50.8 (15.7) 35.1 32.7 105.9 Q3 FY11 2,125.9 229.4 10.8% 105.9 (5.7) 100.1 77.3 131.8
Q3 FY11 11,279.9 1,217.2
13,337.9 897.2 6.7% 269.5 (83.3) 186.2 173.7 561.9
10.8% (410 bps) 561.7 (30.5) 531.2 410.1 699.4 -52.0% NM -64.9% -57.6% -19.7%
Higher marketing spends in the passenger car business and overall cost pressures, including commodity costs impacted profitability.
^ Excludes Other Income * Cash Profit = EBITDA + Other Income Product development expenses - Net Interest paid - Tax Paid @ At conversion rate of USD 1 = 53.06 INR. For reference only
INVESTOR
RELATIONS
Tata Motors standalone P&L (Audited) For the Quarter ended December 2011 (Q-o-Q)
Rs Crores Q3 FY12 Net Revenue ^ EBITDA ^ EBITDA margin Profit before exceptional items & tax Exceptional item # PBT PAT Cash Profit
*
USD million @ % change 3.0% -3.9% (50 bps) -18.5% NM 410.2% 70.2% -3.8% Q3 FY12 2,513.7 169.1 6.7% 50.8 (15.7) 35.1 32.7 105.9 Q2 FY12 2,441.3 175.9 7.2% 62.3 (55.4) 6.9 19.2 110.1
Q2 FY12 12,953.8 933.1 7.2% 330.7 (294.2) 36.5 102.0 584.4
13,337.9 897.2 6.7% 269.5 (83.3) 186.2 173.7 561.9
Higher marketing spends in the passenger car business and overall cost pressures, including commodity costs impacted profitability. # Continued depreciation of USD/INR in Q3 resulted in exchange loss on revaluation of net outstanding foreign currency borrowings. However, this was partially offset by the adoption of revised AS11.
^ Excludes Other Income * Cash Profit = EBITDA + Other Income Product development expenses - Net Interest paid - Tax Paid @ At conversion rate of USD 1 = 53.06 INR. For reference only
INVESTOR RELATIONS 8
Tata Motors standalone P&L (Audited) For the 9m ended December 2011 (Y-o-Y)
Rs Crores 9m FY12 Net Revenue ^ EBITDA ^ EBITDA margin Profit before exceptional items & tax Exceptional item PBT PAT Cash Profit
*
USD million @ % change 15.7% -19.2% 9m FY12 7,145.8 537.2 7.5% 200.5 (70.7) 129.8 127.6 343.0 9m FY11 6,174.7 665.0 10.8% 320.1 (17.5) 302.7 233.4 430.6
9m FY11 32,762.9 3,528.3
37,915.8 2,850.5 7.5% 1,064.0 (375.0) 689.0 677.0 1,820.1
10.8% (330 bps) 1,698.7 (92.7) 1,606.0 1,238.5 2,284.7 -37.4% NM -57.1% -45.3% -20.3%
^ Excludes Other Income * Cash Profit = EBITDA + Other Income Product development expenses - Net Interest paid - Tax Paid @ At conversion rate of USD 1 = 53.06 INR. For Reference only
INVESTOR
RELATIONS
Financial Highlights
Standalone Business
Commercial Vehicles
JLR
Passenger Vehicles Exports
Other Subsidiaries
Way Forward
INVESTOR
RELATIONS
10
Healthy growth in Commercial Vehicles
Tata Motors CV sales continued robust growth MHCV grew at ~ 7% ; LCV at ~ 22% during 9m FY 12 (Y-o-Y)
15% 324,375 374,532
Continued outperformance in the MHCV/ICV trucks has increased the Q3 FY12 market share to 63.5% in the segment Strong consumption demand continues to drive growth in the LCV segment. In Uttarakhand,
the production loss due to communal tensions in
227,105 186,344
Oct
2011
and
the up)
planned in Dec
shutdown 2011
(for
16% 131,220 113,586
66,911 46,675 80,079 138,031 51,141
capacity volumes.
147,427
ramp
impacted
Slowdown in the
9m FY12
Bus
market follows
the
Q3 FY11
Q3 FY12
9m FY11
fulfillment of orders received under JNNURM scheme. Excluding buses, the 9m FY12 the y-o-y growth in Commercial Vehicles is 18%
MHCV
LCV
Tata Motors Commercial Vehicles 9m FY12 Market share stood at 59.4%
Average Price increases taken in Q3 FY 12 is ~ 0.7%
INVESTOR RELATIONS
11
Tough market conditions impact Passenger vehicles
Domestic Passenger car industry de-grew 3% in Q3
2% 224,986 220,574
Micro Compact Midsize
FY12 on a Y-o-Y basis. However, Tata Motors improved sales by 33% to 85,963 units driven by sales of Nano, and sales in Compact segment, UV and Vans Focused network actions have positively influenced retails. Introduced several new features on the Nano, including improved fuel efficiency which aided volume traction Sumo & Safari drive volumes in the UV segment, with the newly launched Tata Sumo Gold receiving positive response. In the Vans segment, Venture continues to drive growth. Price increases of 1.6 2% during the later part of Q3 in passenger vehicles excluding Nano
Executive Premium/Luxury Utility Vehicles Vans Total 64,537 85,963 224,986 220,574
85,963 33% 64,537
Executive Premium/ Luxury Utility Vehicles Vans
Q3 FY11 Q3 FY12 9m FY11 9m FY12
Note: Data includes JLR & Fiat sales; Premium/Luxury includes Jaguar vehicles sold in India ; Vans comprises of Tata Venture Source : SIAM & Company data
Tata Motors Passenger Vehicles 9m FY 12 Market Share improves to 12.6% (Q3 14.6%)
Segments/Period (units) Q3 FY11 Q3 FY12 9m FY11 9m FY12 Micro Compact Midsize
9,345 17,735 46,749 47,116
37,176 48,810 115,571 119,464
6,494 3,969 27,057 12,906
1,963 1,191 6,619 3,423
141 324 231 644
INVESTOR
9,336 12,377 28,625 31,936
82 1,557 134 5,085
RELATIONS
12
Subdued exports in Q3 FY 12
6% 42,673 45,228
35,839
39,593
(11)% 15,962 14,145
14,166
12,422 6,834 5,635
CVBU PCBU
1,796
1,723
Q3 FY11
Q3 FY12
9m FY11
9m FY12
SAARC countries and certain African and Middle Eastern countries continue to be the major export markets
INVESTOR
RELATIONS
13
Financial Highlights
Standalone Business
JLR
Jaguar Land Rover PLC
Other Subsidiaries
Way Forward
INVESTOR
RELATIONS
14
Jaguar Land Rover PLC - P&L
Y-o-Y % change 41.0% 62.6% 270 bps 86.2% 57.4% Q-o-Q % change 27.9% 72.0% Y-o-Y % 9m FY12 9m FY11 change 9,386.9 1,575.7 16.8% 1,094.5 896.9 7,167.0 1,183.9 16.5% 804.0 749.1 31.0% 33.1% 30 bps 36.1% 19.7%
GBP Million Net Revenue EBITDA EBITDA margin PBT PAT
Q3 FY12 Q3 FY11 3,746.4 751.9 20.1% 559.3 440.4 2,657.8 462.4 17.4% 300.5 279.9
Q2 FY 12 2,928.5 437.0
14.9% 520 bps 286.7 237.5 95.1% 85.4%
Strong Revenue & Profit performance led by volumes, product, market mix and continued favorable exchange rates
INVESTOR
RELATIONS
15
Jaguar Land Rover: Highlights
Growth has been backed by exciting products & strong market mix. The recently launched, all-new Range Rover Evoque continues to receive overwhelmingly positive response. The XF 2.2 Diesel completed an epic journey from New York to Los Angeles, averaging an incredible 62.9 mpg over 2,884-miles - making it the most efficient Jaguar ever created. Land Rover Range Rover Evoque received the 2012 North American International Auto Show Truck of the Year at Detroit. The Land Rover Defender concepts DC100 and DC100 Sport were show cased at the Delhi Auto show to an appreciative audience Tied up Revolving Credit Facilty (RCF) with a consortium of banks for committed 3 -5 year credit lines of GBP 610 million which has since been upsized to GBP 710 million, This will enable JLR to have access to the funding as and when required and optimize cash balances, while strengthening the capital structure.
INVESTOR
RELATIONS
16
Wholesale volumes & market mix For Q3 FY 12
86,322 37%
63,155
China and other developing markets continued to demonstrate strong growth in volumes Q3 FY 12
Jaguar
Land Rover
Robust volume growth backed by exciting products Q3 FY 11
INVESTOR RELATIONS 17
Wholesale volumes & market mix For 9m FY 12
22% 216,412
177,490
Volume growth continues with strong product and market mix 9m FY 12
Jaguar
Land Rover
9m FY 11
INVESTOR RELATIONS 18
Financial Highlights
Standalone Business
Tata Motors Finance Tata Technologies
JLR
Tata Daewoo TML Drivelines Ltd
Other Subsidiaries
Way Forward
INVESTOR
RELATIONS
19
Tata Motors Finance
Rs. Crores Disbursal (Nos) Net Revenue * Operating Income # Operating Margin PAT % of Revenue Y -o-Y % change Q3 FY 12 Q3 FY11 66829 523.5 95.1 18.2% 70.6 13.5% 36162 331.8 84.8% 57.8% Q-o-Q % change Q2 FY 12 45281 471.3 67.4 47.6% 11.1% 41.1% Y-o-Y % change 9m FY 12 9m FY 11 155471 1403.8 223.4 15.9% 171.5 12.2% 102327 993.4 113.4 51.9% 41.3% 97.0%
36.2 163.0% 10.9% 730 bps 32.8 115.3% 9.9% 360 bps
14.3% 390 bps 52.4 34.8%
11.4% 450 bps 101.2 69.5%
11.1% 240 bps
10.2% 200 bps
* Excludes Other Income ; # Excludes Other income and after Net Interest
Total vehicle financing disbursals (TMF) for Q3 FY12 were Rs. 2,943 Cr, an increase of 59% from Rs 1,855 Cr in Q3 FY11. The book size at the end of Dec11 for TMFL and TML (Vehicle Financing) stood at Rs 14,170 Cr and Rs 97 Cr respectively. TMF market-share for 9m FY12 stood at 26.7%. NIM of vehicle financing business (TMF ) for 9m FY12 was 8.4%
INVESTOR RELATIONS 20
Tata Technologies
Y-o-Y % Q3 FY12 Q3 FY11 change 439.2 78.8 17.9% 58.2 13.3% 313.3 40.2% Q-o-Q % Q2 FY12 change 371.6 54.0 18.2% 45.9% Y-o-Y % 9m FY12 9m FY11 change 1145.9 186.7 16.3% 146.2 12.8% 906.1 128.1 26.5% 45.8%
Rs. Crores Net Revenue * EBITDA * % of Revenues PAT % of Revenues
39.2 101.2% 12.5% 540 bps 28.3 106.1% 9.0% 430 bps
14.5% 340 bps 48.4 13.0% 20.3% 30 bps
14.1% 220 bps 91.5 59.7%
10.1% 270 bps
Revenue break-up H1 FY12
Note: *Excludes Other Income
Revenue continued with its upward trend increasing by 26.5% and PAT increasing by 59.7% during 9m FY 12. Offshore revenue growth at 53% Strong Cash & cash equivalents Rs 190.6 crs as at December 31, 2011 Operational efficiency measures continue to improve performance.
INVESTOR RELATIONS 21
Tata Daewoo
Y-o-Y % Q3 FY12 Q3 FY11 change Q2 FY12 1844 704.5 32.0 4.5% -1.0 -0.1% 1905 658.5 24.7 3.8% -3.3 -0.5% -3.2% 7.0% 29.6% 70 bps NM 40 bps 2760 901.8 29.7 3.3% 2.7 0.3% Q-o-Q % Y-o-Y % change 9m FY12 9m FY11 change -33.2% -21.9% 7.7% 120 bps -137.7% (40) bps 7392 2486.7 115.0 4.6% 18.8 0.8% 6558 2123.3 140.9 12.7% 17.1% -18.4%
Rs. Crores Sales (Units) Net Revenue * EBITDA * % of Revenues PAT % of Revenues
6.6% (200) bps 41.8 -55.0%
2.0% (120) bps
Excludes Other Income
Sales volumes supported by stabilization of business at Sales Company (Tata Daewoo Sales Co TDSC). Profitability impacted with lower domestic sales and product mix
INVESTOR
RELATIONS
TML Drivelines Ltd
TML Drivelines Q3 FY 12 174.3 106.2 60.9% 60.8 34.9% HVAL Q3 FY 11 72.5 39.2 54.1% 20.0 27.5% HVTL Q3 FY 11 73.4 42.0 57.2% 21.5 29.3% TML Drivelines Q2 FY 12 165.4 98.4 59.5% 54.9 33.2% Q-o-Q % change 5.4% 7.9% 140 bps 10.7% 170 bps TML Drivelines HVAL HVTL 9m FY 12 9m FY11 9m FY11 508.3 308.4 60.7% 173.0 34.0% 219.6 126.1 57.4% 64.9 29.6% 205.5 117.7 57.3% 58.7 28.6%
Rs. Crores Net Revenue * EBITDA * % of Revenues PAT % of Revenues
Note: *Excludes Other Income
In terms of the Scheme of Amalgamation HV Transmission Limited has been amalgamated with HV Axles. The name has been subsequently changed to TML Drivelines Ltd. Sales Revenue increased on the back of growth in domestic CV market While overall cost pressures remains, EBITDA margins were supported by cost control initiatives
INVESTOR
RELATIONS
23
Financial Highlights
Standalone Business
Tata Motors
JLR
Jaguar Land Rover
Other Subsidiaries
Way Forward
INVESTOR
RELATIONS
24
Way Forward Tata Motors Ltd
Demand pressure for some of the MHCV applications, but overall MHCV market expected to sustain LCV / SCV continues to show robust growth Credit availability continues to be adequate. Interest rate outlook expected to moderate, however concerns remain on overall industrial growth. Increase in infrastructure spending could propel demand for MHCV trucks. Services and agriculture sector along with rural connectivity, proliferation of hub & spoke model and demand of passenger applications is expected to drive growth in LCV/SCV segment. Competitive intensity in CVs expected to increase, but Company well placed with a wide and compelling product portfolio and customer support. Proposed ramp up of ACE family production via additional capacity in Dharwad on schedule. Competitive intensity and increasing costs poses significant challenge to the passenger vehicle industry, with higher inflation, interest costs, fuel price increases dampening the demand. Significant market actions which have resulted in improving retail sales for passenger vehicles and market share in Q3 FY12 to continue. Future products in pipeline for FY 12 Variants from Prima range, World LCV range, ACE variants. Safari Storme unveiled in January 2012. Further expand sales and service network in India and enhanced customer care. Extend export potential.
INVESTOR RELATIONS 25
Way Forward Jaguar Land Rover
Continue to work on profitable volume growth, managing costs and improving efficiencies to sustain the growth momentum Continue with planned investments in future new products and technologies to enable profitable growth and meet customer and regulatory CO2 requirements Continue to increase sales across all markets with new and refreshed products, increasing share of sales in China and other growth markets. Introduction of Evoque derivatives External geopolitical and economic factors, exchange rate movement could impact volumes and profitability
INVESTOR
RELATIONS
26
THANK YOU
INVESTOR
RELATIONS
27
