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FY11 Results Review – Press / Analyst Meet

26th May, 2011

• 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

Financial Highlights


Consolidated financials


Standalone financials

Way Forward




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 Net Revenue EBITDA EBITDA margin Other Income PBT PAT
# #*

FY11 123,133.3 17,780.0 14.4% 89.6 10,437.2 9,273.6 13,470.5

FY10 92,519.3 8,614.2 9.3% 1,793.1 3,522.6 2,571.1 6,440.2

% change 33.1% 106.4% 510 bps -95.0% 196.3% 260.7% 109.2%

Cash Profit

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’

Tata Motors Consolidated Balance Sheet (Audited)
In Rs crores Sources of funds Shareholder Funds Minority Interest Foreign Currency Monetary Item Translation Difference Account Deferred Tax Liability (Net) Loan Funds Total Funds Employed Mar-11 19,171.5 246.6 2,096.1 32,791.4 54,305.6 Mar-10 8,206.5 213.5 191.2 1,579.6 35,108.4 45,299.1

Increase in networth of Rs 10,965 crs during FY11. EPS (basic) stood at Rs 155.25 for FY11 as compared to Rs 48.64 for FY10 Net Automotive Debt / Equity stood at 0.68 as on March 31, 2011. Overall capex spend of ~ Rs 8,521 crs in FY11. (JLR ~ GBP 775 mio); (TML ~

Application of funds Fixed Assets (Net) Goodwill (on consolidation) Investments Deferred Tax Assets (Net) Net Current Assets Total Funds Utilised 43,493.1 3,584.8 2,544.3 632.3 4,051.1 54,305.6 38,506.3 3,422.9 2,219.1 426.0 724.8 45,299.1

Rs 2,391 crs) Financing business continues growth and profitability with book size of ~ Rs 9,878 crs on March 31, 2011




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 Net Revenue EBITDA EBITDA margin Other Income PBT PAT Cash Profit * FY11 48,040.5 4,771.3 9.9% 183.3 2,196.5 1,811.8 3,199.6 FY10 35,593.1 4,178.3 1,853.5 2,829.5 2,240.1 4,264.7 % change 35.0% 14.2% -90.1% NM NM NM

11.7% (180 bps)

Cost pressures including commodity prices impacted EBITDA margins.

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




Tata Motors Standalone Balance Sheet (Audited)

In Rs crores Sources of funds Shareholder Funds Loan Funds Deferred Tax Liability (Net) Total Funds Employed



EPS (basic) stood at Rs 30.28 for FY11 as compared Rs 42.37 for FY10.

20,013.3 15,898.7 2,023.2 37,935.2

14,965.5 16,594.5 1,508.6 33,068.6

In Oct 2010, funds of USD 750 mio were raised via QIP of Ordinary & A Ordinary shares as part of de-leveraging initiative. FCCBs of ~ USD 326 mio equivalent were converted to equity during the year and

2,35,70,426 Shares were allotted against the

Application of funds Fixed Assets (Net) Investments Foreign Currency Monetary Item Translation Difference Account (Net) Net Current Assets Total Assets (net) 17,475.6 22,624.2 16,436.0 22,336.9

conversion. Net Debt/Equity at 0.67 as on March 31, 2011 The Board of Directors recommended a

(2,164.6) 37,935.2

161.7 (5,866.0) 33,068.6

Dividend of Rs 20 per Ordinary Shares and Rs 20.50 per A Ordinary Shares for FY 2010-11




Financial Highlights


Commercial Vehicles Passenger Vehicles



Way Forward




Continued growth in Commercial Vehicles
Domestic CV industry grew ~ 27% in FY 11 23% 373,842
262,177 218,681

Y-o-Y Growth in the CV markets continued through the year supported by sustained economic growth leading to significant revival in Exim trade, coupled with infrastructure development, pick up in mining & construction activities, favorable financing environment and healthy freight availability. H1 of FY 11 was characterized with high growth rates due to a low base effect. H2 FY 11 continued growth path. 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 155,161 196,651

MHCV grew at ~ 27%; LCV segment grew at ~ 20% Capacity expansion at Uttaranchal in place towards the end of


FY 11

the year. 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 Source: SIAM and Company analysis

applications from the Tata Winger platform. We took cumulative price increases of 5.3% in FY 11 along with cost reduction initiatives to counter higher input costs

Tata Motors FY 11 market share - 61.8%

Passenger vehicles also grew
Passenger vehicles industry continued to grow (~30%) Y-o-Y in FY Growth driven by relatively young product portfolio 319,712 11 with better economic outlook, rise in disposable income, several new offerings, higher discounts to mitigate intensifying competition, availability of financing alternatives, increased rural penetration. 23% 260,020
180,091 158,093

Tata Passenger vehicles’ sales volumes grew ~ 27% led by growth in sales of Nano, Manza, Indigo CS and Safari. In FY 2011, the company crossed 2 million passenger vehicle sales since inception. The ‘Mini’ segment growth was driven by Nano sales which clocked ~70000 units in FY11. The company continues to undertake focused marketing initiatives specific to Nano. Cumulative sales of Tata Nano

96,455 68,195 33,507 FY 10 UV Midsize 42,277 FY 11 Small Car

crossed 100,000 mark during FY11. The industry for the “Midsize” segment grew by ~ 30% Y-o-Y while the sales of the Tata passenger cars in the segment grew

substantially by 55% driven by the sales of Manza. Sales of Utility Vehicles showed a healthy growth of ~ 26% Y-o-Y with improved sales of Sumo, Safari and the new launches in the segment like Aria and Venture. New products launched in FY 11 – Indigo CS e-series, Aria, Venture, Vista 90, Indica eV2, Manza Elan We took price increases of ~ 4-6% on Tata Passenger cars

Note: Figs includes JLR and Fiat sales Source: SIAM and Company analysis

Market Share for Passenger vehicles in FY11 stood at 13.0%


Exports Markets show substantial growth with improved macro economic indicators
58,089 70%

Tata export volumes increased substantially by 70.3% in 2010-11 over last year.


Exports to Bangladesh, Sri Lanka & Bhutan continued to grow, both, over the previous quarters as well as on a y-o-y basis.


Poland and MENA countries showed much
6,231 FY 10
Passenger Vehicles

7,845 FY 11
Commercial Vehicles

better volumes over prior year. However, certain MENA countries showed subdued

sales in Q4FY11 due to the lingering political crisis.




Financial Highlights

Jaguar Land Rover

Tata Motor Finance Tata Technologies Tata Daewoo



Way Forward




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 Net Revenue EBITDA EBITDA margin PBT PAT Cash Profit * FY11 9,905.1 1,618.6 16.3% 1,125.6 1,042.5 1,386.4 FY10 6,554.8 392.7 % change 51.1% 312.2%

6.0% 1030 bps 14.6 (14.2) 238.3 NM NM 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.

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




Jaguar Land Rover Wholesale volumes & market mix
243,621 26%

RoW 16.2% Russia 4.8%

UK 24.0%

Wholesale Sales



Europe(excl. Russia), 22.4%

North America 21.6%



China 11.0%

Sales in China + Russia improved 43% in FY 11

RoW 15.3%
52,993 47,418

UK 28.4% Russia 4.2%

Wholesale Sales

FY 10

FY 11


Land Rover

Europe(excl. Russia), 23.0%

North America 19.4%

Healthy volume growth

China 9.7%




Tata Motors Finance
Rs. Crores Disbursal (Nos) Net Revenue * Operating Income # Operating Margin PAT % of Revenues FY11 164,262 1,366.6 146.2 10.7% 127.1 9.3% FY10 148,015 1,132.0 (4.5) NA 44.2 3.9% % change 11.0% 20.7% NM NM 187.8% 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

Tata Technologies
Rs. Crores Net Revenue * EBITDA * % of Revenues Net Profit % of Revenues
Note: *Excludes Other Income

FY11 1249.3 187.4 15.0% 139.0 11.1%

FY10 1070.4 126.4 11.8% 91.0 8.5%

% change 16.7% 48.3% 320 bps 52.8% 260 bps
Revenue break-up FY11

• Increased operational efficiency and cost reduction measures
continue to improve EBITDA margins to 14.4%
North America, 37% Europe, 30%

• Business traction and subsidiaries profitability led to best FY
performance of the Company from PAT perspective

• Diversified customer base and key marquee clients in automotive &
aerospace businesses

APAC (Including India) 33%

• Primary issue of shares of ~ USD 30 mio to Private equity in April

Tata Daewoo
Rs. Crores Sales (Units) Net Revenue * EBITDA * % of Revenues Net Profit % of Revenues
Note: *excludes Other Income


FY10 % change

8748 2,881.1 187.5 6.5% 73.0 2.5%

8769 2,728.7 191.7 7.0% 81.6 3.0%

-0.2% 5.6% -2.2% (50) bps -10.6% (50) bps

• • • •

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



HV Axles & HV Transmissions
Rs. Crores Net Revenue * EBITDA * % of Revenues Net Profit % of Revenues
Rs. Crores Net Revenue * EBITDA * % of Revenues Net Profit % of Revenues
Note: *Excludes Other Income

FY11 312.1 184.5 59.1% 94.2 30.1%
FY11 294.4 174.5 59.3% 90.8 30.8%

FY10 238.7 137.3 57.5% 63.8 26.7%
FY10 209.8 114.4 54.5% 52.6 25.1%

% Change 30.7% 34.3% 160 bps 47.5% 340 bps
% Change 40.3% 52.5% 480 bps 72.4% 570 bps

HV Axles Ltd

HV Transmissions Ltd

• •

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

Financial Highlights


Tata Motors Jaguar Land Rover

Way Forward




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

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




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.

Thank You