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FY11 Results Review – Press / Analyst Meet

26th May, 2011


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 Company’s 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

• FY 11 represents the period from 1st April 2010 to 31st March 2011

• FY 10 represents the period from 1st April 2009 to 31st March 2010

• Financials contained in the presentation are in Indian GAAP


INVESTOR RELATIONS
Financial
Highlights

Standalone  Consolidated financials

Subsidiaries  Standalone financials

Way
Forward

INVESTOR RELATIONS 3
Tata Motors Consolidated P&L – (Audited)
Tata Motors Group Global sales volume crosses 1 million ;
Turnover crosses Rs 1 lakh crores and PBT crosses Rs 10,000 crores

Rs Crores FY11 FY10 % change


Net Revenue 123,133.3 92,519.3 33.1%
EBITDA 17,780.0 8,614.2 106.4%
EBITDA margin 14.4% 9.3% 510 bps
Other Income 89.6 1,793.1 -95.0%
PBT 10,437.2 3,522.6 196.3%
#
PAT 9,273.6 2,571.1 260.7%
#*
Cash Profit 13,470.5 6,440.2 109.2%

JLR business contributes to growth in EBITDA margin

# After Minority Interest and share of Profit/(loss) in respect of associate companies


* Cash Profit = EBITDA + Other Income – Product Development Expenses – Net Interest - Tax Paid
EBITDA excludes ‘Other Income’

INVESTOR RELATIONS 4
Tata Motors Consolidated Balance Sheet (Audited)

Increase in networth of Rs 10,965 crs


In Rs crores Mar-11 Mar-10
during FY11.
Sources of funds
Shareholder Funds 19,171.5 8,206.5
EPS (basic) stood at Rs 155.25 for
Minority Interest 246.6 213.5
FY11 as compared to Rs 48.64 for FY10
Foreign Currency Monetary Item
Translation Difference Account - 191.2
Deferred Tax Liability (Net) 2,096.1 1,579.6 Net Automotive Debt / Equity stood at

Loan Funds 32,791.4 35,108.4 0.68 as on March 31, 2011.

Total Funds Employed 54,305.6 45,299.1 Overall capex spend of ~ Rs 8,521 crs
in FY11. (JLR ~ GBP 775 mio); (TML ~
Application of funds Rs 2,391 crs)
Fixed Assets (Net) 43,493.1 38,506.3
Financing business continues growth
Goodwill (on consolidation) 3,584.8 3,422.9
and profitability with book size of ~ Rs
Investments 2,544.3 2,219.1
Deferred Tax Assets (Net) 632.3 426.0 9,878 crs on March 31, 2011
Net Current Assets 4,051.1 724.8
Total Funds Utilised 54,305.6 45,299.1

INVESTOR RELATIONS 5
Tata Motors Standalone P&L – (Audited)
Sales volume over 8 lakhs ;
Turnover ~ Rs 48,000 crores and PBT crosses Rs 2,000 crores

Rs Crores FY11 FY10 % change


Net Revenue 48,040.5 35,593.1 35.0%
EBITDA 4,771.3 4,178.3 14.2%
EBITDA margin 9.9% 11.7% (180 bps)
Other Income 183.3 1,853.5 -90.1%
PBT 2,196.5 2,829.5 NM
PAT 1,811.8 2,240.1 NM
Cash Profit * 3,199.6 4,264.7 NM

Cost pressures including commodity prices impacted EBITDA margins.

* Cash Profit = EBITDA + Other Income - Product Development Expenses – Net Interest - Tax Paid
EBITDA excludes ‘Other Income’

INVESTOR RELATIONS 6
Tata Motors Standalone Balance Sheet (Audited)

In Rs crores Mar-11 Mar-10 EPS (basic) stood at Rs 30.28 for FY11 as

Sources of funds compared Rs 42.37 for FY10.

Shareholder Funds 20,013.3 14,965.5 In Oct 2010, funds of USD 750 mio were raised

Loan Funds 15,898.7 16,594.5 via QIP of Ordinary & A Ordinary shares as part
of de-leveraging initiative.
Deferred Tax Liability (Net) 2,023.2 1,508.6
FCCBs of ~ USD 326 mio equivalent were
Total Funds Employed 37,935.2 33,068.6
converted to equity during the year and
2,35,70,426 Shares were allotted against the
Application of funds conversion.
Fixed Assets (Net) 17,475.6 16,436.0
Net Debt/Equity at 0.67 as on March 31, 2011
Investments 22,624.2 22,336.9
Foreign Currency Monetary The Board of Directors recommended a
Item Translation Difference Dividend of Rs 20 per Ordinary Shares and Rs
Account (Net) - 161.7
Net Current Assets (2,164.6) (5,866.0) 20.50 per A Ordinary Shares for FY 2010-11
Total Assets (net) 37,935.2 33,068.6

INVESTOR RELATIONS 7
Financial
Highlights

Standalone  Commercial Vehicles

 Passenger Vehicles

Subsidiaries
 Exports

Way
Forward

INVESTOR RELATIONS 8
Continued growth in Commercial Vehicles
Domestic CV industry grew ~
Y-o-Y Growth in the CV markets continued through the year
27% in FY 11 supported by sustained economic growth leading to significant
revival in Exim trade, coupled with infrastructure development,
458,828
23% pick up in mining & construction activities, favorable financing
373,842 environment and healthy freight availability.

H1 of FY 11 was characterized with high growth rates due to a


262,177
low base effect. H2 FY 11 continued growth path.
218,681
Growth in MHCV segment has been accompanied by a
structural alignment and shift in favor of higher tonnage trucks

Tata Motors CV sales grew at ~ 23% in FY 11. Of this -


196,651 MHCV grew at ~ 27%; LCV segment grew at ~ 20%
155,161
Capacity expansion at Uttaranchal in place towards the end of
the year.
FY 10 FY 11
MHCV LCV Various new products in FY 11 include new launches from the
Tata Prima Construck range, variants in the MHCV segment
including expansion of tractor trailer range, passenger
Note: LCV includes sales of Magic and Winger
applications from the Tata Winger platform.
Source: SIAM and Company analysis
We took cumulative price increases of 5.3% in FY 11 along with
Tata Motors FY 11 market share - 61.8%
cost reduction initiatives to counter higher input costs

INVESTOR RELATIONS 9
Passenger vehicles also grew
Passenger vehicles industry continued to grow (~30%) Y-o-Y in FY
Growth driven by relatively young 11 with better economic outlook, rise in disposable income, several
product portfolio new offerings, higher discounts to mitigate intensifying competition,
availability of financing alternatives, increased rural penetration.
319,712
23% Tata Passenger vehicles’ sales volumes grew ~ 27% led by growth
in sales of Nano, Manza, Indigo CS and Safari. In FY 2011, the
260,020
company crossed 2 million passenger vehicle sales since inception.
180,091
The ‘Mini’ segment growth was driven by Nano sales which clocked
158,093 ~70000 units in FY11. The company continues to undertake focused
marketing initiatives specific to Nano. Cumulative sales of Tata Nano
crossed 100,000 mark during FY11.
96,455
68,195 The industry for the “Midsize” segment grew by ~ 30% Y-o-Y while
the sales of the Tata passenger cars in the segment grew
33,507 42,277
substantially by 55% driven by the sales of Manza.
FY 10 FY 11
Sales of Utility Vehicles showed a healthy growth of ~ 26% Y-o-Y
UV Midsize Small Car
with improved sales of Sumo, Safari and the new launches in the
Note: Figs includes JLR and Fiat sales segment like Aria and Venture.
Source: SIAM and Company analysis New products launched in FY 11 – Indigo CS e-series, Aria, Venture,

Market Share for Passenger vehicles in Vista 90, Indica eV2, Manza Elan

FY11 stood at 13.0% We took price increases of ~ 4-6% on Tata Passenger cars

INVESTOR
INVESTOR RELATIONS
RELATIONS 10
Exports Markets show substantial growth with
improved macro economic indicators

58,089 Tata export volumes increased substantially

70% by 70.3% in 2010-11 over last year.

Exports to Bangladesh, Sri Lanka & Bhutan


34,109
50,244 continued to grow, both, over the previous
quarters as well as on a y-o-y basis.
27,878

Poland and MENA countries showed much


6,231 7,845 better volumes over prior year. However,
FY 10 FY 11 certain MENA countries showed subdued
Passenger Vehicles Commercial Vehicles
sales in Q4FY11 due to the lingering political
crisis.

INVESTOR RELATIONS 11
Financial
Highlights

 Jaguar Land Rover


Standalone
 Tata Motor Finance

 Tata Technologies

 Tata Daewoo
Subsidiaries
 HVAL / HVTL

Way
Forward

INVESTOR RELATIONS 12
Jaguar Land Rover Plc – P&L (Audited)

Sales nos. over 2.4 lakhs ;


Turnover ~ GBP 10 billion and PBT crosses GBP 1 billion

GBP Million FY11 FY10 % change

Net Revenue 9,905.1 6,554.8 51.1%

EBITDA 1,618.6 392.7 312.2%

EBITDA margin 16.3% 6.0% 1030 bps

PBT 1,125.6 14.6 NM

PAT 1,042.5 (14.2) NM

Cash Profit * 1,386.4 238.3 481.9%

Cash Profit = EBITDA + Other Income - Product Development Expenses – Net Interest - Tax Paid

EBITDA excludes ‘Other Income’

EBITDA margins for FY11 increase to 16.3% supported by better product mix, market
mix, favorable exchange rates & impact of margin improvement measures.

INVESTOR RELATIONS 13
Jaguar Land Rover Plc : Highlights

• Improved macroeconomic conditions, strong demand for products across markets and
internal actions improved profitability over prior year.

• Jaguar Land Rover reported a profit after tax of £ 1,043 mn for FY 11 as against £ (14) mn
in FY 10

• Other highlights for the year include:

• Significant volume & mix growth over the previous year

• Product highlights: Jaguar XJ , Jaguar XKR-75, Land Rover 11MY Freelander incl. 2.2l
turbo diesel engine , Range Rover Ultimate Edition & Discovery Landmark Limited
edition

• Exchange rates continue to be a positive factor

• Net Debt as on Mar 31, 2011 at GBP 233 mn vs GBP 603 mn as on March 31, 2010

INVESTOR RELATIONS 14
Jaguar Land Rover Wholesale volumes & market mix

243,621 RoW 16.2%


26% UK 24.0%

Russia 4.8% Wholesale


193,982 Sales
Europe(excl. North FY11
Russia), America
190,628 22.4% 21.6%

146,564 China 11.0% Sales in China +


Russia improved 43%
in FY 11

RoW 15.3%
52,993
UK 28.4%
47,418 Russia 4.2%
Wholesale
Sales
FY 10 FY 11 Europe(excl.
Russia),
FY10
North
Jaguar Land Rover 23.0% America
19.4%

Healthy volume growth China 9.7%

INVESTOR RELATIONS 15
Tata Motors Finance
Rs. Crores FY11 FY10 % change

Disbursal (Nos) 164,262 148,015 11.0%

Net Revenue * 1,366.6 1,132.0 20.7%


Operating Income # 146.2 (4.5) NM
Operating Margin 10.7% NA NM

PAT 127.1 44.2 187.8%

% of Revenues 9.3% 3.9% 138.4%


* Excludes Other Income ; # Excludes Other income and Net Interest

• Total vehicle financing disbursals (TMF) for FY11 were Rs. 7,908 Crs, an increase of 18%
from Rs 6,697 Crs in FY10.

• The book size at the end of March 11 for TMFL and TML (Vehicle Financing) stood at Rs
9,878 Cr and Rs. 247 Cr respectively.

• TMF market-share for FY11 stood at 21.4%. NIM of vehicle financing business (TMF ) for
FY11 was 10.1%.

• TMF issued Unsecured Non-Convertible, Subordinated, Perpetual Debentures of Rs 150


crores towards Tier 1 capital
INVESTOR RELATIONS 16
Tata Technologies
Rs. Crores FY11 FY10 % change

Net Revenue * 1249.3 1070.4 16.7%

EBITDA * 187.4 126.4 48.3%

% of Revenues 15.0% 11.8% 320 bps

Net Profit 139.0 91.0 52.8%

% of Revenues 11.1% 8.5% 260 bps


Note: *Excludes Other Income Revenue break-up FY11

• Increased operational efficiency and cost reduction measures


continue to improve EBITDA margins to 14.4% North
America,
• Business traction and subsidiaries profitability led to best FY 37% Europe,
30%
performance of the Company from PAT perspective
APAC
• Diversified customer base and key marquee clients in automotive & (Including
India) 33%
aerospace businesses
• Primary issue of shares of ~ USD 30 mio to Private equity in April
2011

INVESTOR RELATIONS 17
Tata Daewoo

Rs. Crores FY11 FY10 % change

Sales (Units) 8748 8769 -0.2%


Net Revenue * 2,881.1 2,728.7 5.6%
EBITDA * 187.5 191.7 -2.2%
% of Revenues 6.5% 7.0% (50) bps
Net Profit 73.0 81.6 -10.6%
% of Revenues 2.5% 3.0% (50) bps
Note: *excludes Other Income

• FY 11 Market share stood at 23.2 % vs 26.1 % over FY 10


• Functioning of our sales company (100% subsidiary of TDCV) launched in July 2010 in the
domestic market has now stabilized.
• Been able to improve our market share sequentially on a quarter on quarter basis in FY 10-11
• EBITDA and PAT margins have declined marginally due to lower volumes

INVESTOR RELATIONS
HV Axles & HV Transmissions
Rs. Crores FY11 FY10 % Change

Net Revenue * 312.1 238.7 30.7% HV


EBITDA * 184.5 137.3 34.3% Axles Ltd
% of Revenues 59.1% 57.5% 160 bps
Net Profit 94.2 63.8 47.5%
% of Revenues 30.1% 26.7% 340 bps

Rs. Crores FY11 FY10 % Change

Net Revenue * 294.4 209.8 40.3% HV


EBITDA * 174.5 114.4 52.5% Transmissions
% of Revenues 59.3% 54.5% 480 bps Ltd
Net Profit 90.8 52.6 72.4%

% of Revenues 30.8% 25.1% 570 bps


Note: *Excludes Other Income
• Sales Revenue continued to increase on the back of growth in domestic CV market

• While overall cost pressures increased, EBITDA margins were supported by improved volumes and cost control
initiatives

• Wef 1 April 2011, HV Axles & HV Transmissions to be amalgamated subject to regulatory approvals and
proposed to be renamed as TML Drivelines Limited
INVESTOR RELATIONS 19
Financial
Highlights

Standalone
 Tata Motors

 Jaguar Land Rover


Subsidiaries

Way
Forward

INVESTOR RELATIONS 20
Way Forward – Tata Motors - Commercial vehicles
• Freight rates continue to appear healthy with demand in haulage segments being robust.

• 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

• Proposed ramp up of ACE family production via additional capacity in Dharwad

• In May 2011 the ACE family was expanded to include Magic Iris & Ace Zip.

• Future products in pipeline for FY 12 – Variants from MHCV & Prima range, World LCV
range.

• Extend export potential

• Commodity prices & concerns on cost continues. Supply constraints been mostly
addressed.

• Current macro economic factors like high inflation, rising interest rates, slower industrial
growth have the potential to adversely impact CV demand

• Competitive intensity expected to increase, but Company well placed with a wide and
compelling product portfolio and customer support
INVESTOR RELATIONS 21
Way Forward – Tata Motors - Passenger vehicles
• Increased focus on rural markets expected to drive volume growth

• Continue transformation and strengthening of the existing product portfolio through


improved value propositions and exploiting emerging trends

• Leverage young product portfolio to strengthen market position

• Further expand sales and service network in India and enhanced customer care

• Sustain low cost base with continuous cost reduction efforts

• Extend export potential, commence exports of the Tata Nano

• Future products in pipeline for FY 12 – Nano variants, Vista refresh, Manza Limited edition,
New Safari, Aria 2WD

• Competitive intensity and increasing costs in the passenger vehicle segment could pose a
risk to operating margins

• While disposable incomes and consumption has risen, higher inflation, interest costs, fuel
price increases have the potential to impact demand

INVESTOR RELATIONS 22
Way Forward - Jaguar Land Rover
• Continue to work on profitable volume growth, managing costs and improving efficiencies to
sustain the growth momentum

• Continuous sustainable technology and product investment plans

• Range Rover Evoque for sales from Summer of 2011

• New Jaguar and Land Rover 12MY products

• Emphasis on growth markets : China, Russia, India and Brazil

• Announcement that Jaguar C-X75 hybrid supercar is to be produced in association with


Williams F1

• External geopolitical and economic factors including exchange rate, could impact volumes and
profitability

• Jaguar Land Rover has completed a £1 billion equivalent 7 & 10 year bond offering in the
capital markets to refinance existing debt, including repayment of Tata Motors funding and for
general corporate purposes

• Further steps to improve the capital structure through extension of debt profile under way.

INVESTOR RELATIONS 23
Thank You

INVESTOR RELATIONS 24