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)
BOMBAY HOUSE
24, HOMI MODY STREET,
MUMBAI 400 001, MAHARASHTRA, INDIA
Telephone # 91 22 6665 8282 Fax # 91 22 6665 7799
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ¨ No x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ¨ No x
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g 3-2(b): Not Applicable
TABLE OF CONTENTS
Item 1: Form 6-K dated November 14, 2011 along with the Interim Report.
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: November 14, 2011
Jaguar Land Rover PLC
Interim Report
for the three months and six months ended 30 September 2011
TABLE OF CONTENTS
| Page | ||||
| 2 | ||||
| 3 | ||||
| 3 | ||||
| MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
||||
| 4 | ||||
| General trends in performance (including results of operations) |
4 | |||
| 7 | ||||
| 7 | ||||
| 7 | ||||
| 8 | ||||
| 8 | ||||
| 8 | ||||
| CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
||||
| 9 | ||||
| 11 | ||||
| 12 | ||||
| 14 | ||||
| 15 | ||||
| 17 | ||||
This report uses:
Group, company, Jaguar Land Rover, JLR to refer to Jaguar Land Rover PLC and its subsidiaries.
FY12 – Year ended 31 March 2012
FY11 – Year ended 31 March 2011
Q1 – 3 months ended 30 June
Q2 – 3 months ended 30 September
H1 – 6 months ended 30 September
1
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 earnings before tax add back depreciation, amortisation, finance income, finance expense and foreign exchange gains/losses. |
| ** | Investment – Represents the net cost of investment in property, plant and equipment, intangible assets and associates. |
| *** | Free Cash Flow – Measured as net cash generated from operations plus net cash used in investing activities. |
2
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 built at i54, a business park near Wolverhampton.
DC100 and DC100 Sport introduced at Frankfurt International Motor Show
Two new Defender concepts from Land Rover – the DC100 and DC100 Sport – investigate the potential design direction of the iconic Defender, capturing the flexibility, adaptability and configurability that have always been key attributes of Land Rover.
C-X16 introduced at Frankfurt International Motor Show
The C-X16 takes the traditional front-engined, rear-wheel-drive formula that Jaguar defined over the decades and reinvents it for the 21st century in a performance-oriented hybrid drivetrain. Jaguar’s two-seat concept is a new breed of Jaguar sports car that aims to set a new class benchmark for design, vehicle dynamics and technology.
Range Rover Evoque production commenced 4th July 2011, went on sale to UK customers in September
A record intake of 336 graduate recruits started work at JLR in September 2011.
AWARDS AND RECOGNITION FOR QUARTER 2 2011/12
XF awarded ‘Car of the Decade’ by Auto Express magazine
Range Rover Evoque awarded ‘Car of the Year’ by Auto Express magazine New Car Awards.
Discovery awarded ‘Best Large SUV’ by Auto Express magazine.
MSN Poll of 40,000 people in UK Land Rover wins ‘Who makes the best 4x4?’
Jaguar Land Rover was honoured by Business in the Community with a gold rating in the Corporate Responsibility Index 2011 and a Big Tick Award for its Environmental Innovation Programme.
Land Rover DC100 Sport awarded Autoweek ‘Best Concept’ award at Frankfurt Motor show
Jaguar C-X16 production concept wins Autoweek ‘Best in Show’ award at Frankfurt Motor show
3
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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 and inflation remains above target within these regions. During this period, interest rates have remained constant. The potential to use interest rates to stimulate growth is limited due to current rates being close to historical lows. The Bank of England announced a further £75 billion of quantitative easing in October.
Greece remains a major concern within the euro zone; however, more recently concerns around Spain and Italy have heightened leading to a downgrade to the Italian credit rating.
In the US, whilst there has been growth, unemployment levels have increased to near 9%. The recently announced financial package known as ‘Operation Twist’ has provided some support but the overall impact is yet to be determined. Whilst the debt ceiling has been increased in the US concerns over the level of frugal growth remain, with annualised growth being reported at 1.5%.
Growth within the matured western markets remains slow and future growth predictions have softened over the last few weeks with the risk of a double dip recession or a sustained period of benign growth increasing.
The company continues to benefit from increased growth in Chinese and Russian markets, where GDP and vehicle volume growth in the SUV and luxury model segments is significantly higher than the mature markets. GDP in China for the equivalent quarter was recorded in excess of 9%,
Economic uncertainty in mature western markets has led to a fall in oil prices whilst energy prices continue to increase. Raw material commodity rates have been volatile during the quarter. However, there has been a reduction in the latter part of the period compared to the previous quarter.
Exchange rates continued to fluctuate, throughout the period. Compared to the prior quarter the British pound has strengthened against the euro at 1.152, but weakened against the US dollar to 1.557 at the end of September, reversing last quarter’s trend. The US dollar appears to be reverting to its historical position of being a safe haven, though volatility is such that this role has yet to be established with certainty.
The company continues to monitor relevant economic and volume indicators in order to manage production and vehicle distribution as well as hedging against currency risks (and material prices to the extent possible).
General trends in performance (including results of operations)
Results and prospects
Quarter financial result
The company has continued to perform strongly in the second quarter of FY12 (Q2 FY12) compared to the equivalent quarter in FY11 (Q2 FY11), with improved revenue as a result of increased volumes in China, Europe and the UK.
EBITDA at £420 million has improved, demonstrating that profit improvement and cost efficiencies remain a continuing focus of the company’s management team.
During the quarter there has been a significantly higher level of investment in keeping with the company’s growth strategy, fully funded from operating cash flow and, overall free cash flow remained positive in the quarter and half year.
4
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.
EBITDA growth
EBITDA for the company increased by £59 million for the quarter to £420 million (£361 million for Q2 FY11). EBITDA for the half year has increased by 13.2% to £782 million compared to H1 FY11.
The EBITDA margin has reduced from 16.6% in Q2 FY12 to 14.4% in the current quarter, predominantly due to less favourable operational exchange rates. Q2 FY12 shows an increase of 1% over Q1 FY12.
Net Income
Net Income (PAT) for the quarter was £172 million (Q2 FY11: £239 million). The reduction was mainly due to mark-to-market losses on un-hedged commodity and foreign exchange derivatives (non-cash) of £94 million and higher income tax expense, which reduced the PAT from £266 million down to £172 million.
Strong volume growth
Total retail volumes were 65,682 units for the quarter, an increase of 17% compared to Q2 FY11. Retail volumes for Q2 FY12 were 13,233 units for Jaguar and 52,449 for Land Rover. Land Rover’s growth, compared to the equivalent quarter in the prior year was 24% whilst Jaguar’s volume reduced by 6%.
Retail volumes in the UK were 14,996 units, a 1% increase on the equivalent quarter in the prior year, whilst the North American retail volumes were 12,106. China saw further significant increases with retail volumes ending the reporting period at 10,869 up on the equivalent quarter in the prior year by 87%. There was continued positive growth in Europe of 5% resulting in a retail volume of 12,458 whilst Russia achieved volume sales of 3,369.
Wholesale volumes for Q2 FY12 were 68,000 units, an increase of 23% on the equivalent quarter in the prior year. At a brand level, wholesale volumes were 54,694 units for Land Rover and 13,306 units for Jaguar.
Performance in key geographical markets on retail basis
United States
The US premium car segment volumes increased by 8.3% in Q2 FY12, compared to Q2 FY11, with Land Rover up by 14.1% and Jaguar down 25%.
US premium SUV segment volumes were up 2.7% compared to Q2 FY11 with Land Rover up 14.1%.
US total retail volumes for the quarter were 11,263 units.
Jaguar retail volumes for the quarter fell by 25% compared to Q2 FY11, and resulted in a decline in market share by 2.4% to 5.4%.
Land Rover retail volumes for the quarter increased by 14.1% compared to Q2 FY11, leading to market share growing from 5.3% to 5.9%.
UK
UK premium car segment volumes increased by 5.8% in the quarter, compared to Q2 FY11, with Land Rover increasing 4.4% and Jaguar volumes down by 5.7%.
The UK premium SUV segment volumes increased by 16.4% in the second quarter compared Q2 FY11, with Land Rover up 4.4% for the quarter.
5
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 for the quarter were up by 4.4% compared to Q2 FY11, with market share down by 1.9% to 12.8%, reflecting constrained supply.
Europe (excluding Russia and UK)
Total retail volumes in the quarter for the Europe region were 12,458, an increase of 5.3% compared to Q2 FY11.
In the quarter, the German premium car segment volumes increased by 28.6% compared to Q2 FY11, and the German premium SUV segment volumes increased by 10.2%.
Jaguar retail volumes for the Europe region for the quarter decreased by 14.5%, whilst in Germany, market share declined by 0.3% to 1.6%.
Land Rover retail volumes for the Europe region for the quarter increased by 11.2%, whilst in Germany its market share declined by 0.4% to 1.7%.
Trading within certain European markets remained challenging throughout the quarter with Turkey and other smaller markets experiencing reduced levels of consumer demand.
Russia
Russia’s premium car segment volumes increased by 40.8% in the second quarter, compared to Q2 FY11, with Jaguar up 6.6%.
The Russian premium SUV segment volumes were up 25.8% compared to Q2 FY11, with Land Rover up 6.3%.
Total Russian retail volumes for the quarter were 3,369 units.
Jaguar retail volumes for the quarter increased by 6.6% compared to Q2 FY11, whilst market share decreased by 1.2% to 3.6%.
Land Rover retail volumes for the quarter increased by 6.3% compared to Q2 FY11, but its market share fell 0.5% to 2.9%.
China
China’s premium car segment volumes increased by 18.1% for the quarter, compared to Q2 FY11, with Jaguar volumes up 158%. This improvement is largely driven by strong demand for the XJ 3.0 petrol model, introduced to the market in March 2011. The premium SUV segment increased in the second quarter by 56%, when compared to Q2 FY11.
Total retail volumes were 10,869 units in the quarter.
Jaguar retails in the quarter were up 158% compared to Q2 FY11, and its market share increased by 0.9% to 1.6%.
Land Rover retails in the quarter were up 79% compared to Q2 FY11, whilst its market share increased by 1.5% to 11.9%.
China remains on track to become the 2nd and 3rd largest market for Land Rover and Jaguar respectively during the current fiscal year.
6
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.
At the end of Q2 FY12, Jaguar Land Rover employed 20,923 people worldwide including agency (Q1 FY12: 20,015). Approximately 1,000 of the people employed are in overseas markets.
Liquidity and capital resources
As at 30 September 2011, the company had cash and cash equivalents of £1,340 million and undrawn committed facilities of £236 million. The total amount of cash and cash equivalents includes £507 million in subsidiaries of Jaguar Land Rover outside the United Kingdom. A portion of this amount is subject to various restrictions or impediments on the ability of the company’s subsidiaries in certain countries to transfer cash across the group.
Borrowings
The following table shows details of the company’s financing arrangements as at 30 September 2011.
| Facility | Facility amount |
Maturity | Outstanding as at 30 September 2011 |
Undrawn as at 30 September 2011 |
||||||||||||
| £ in millions | £ in millions | £ in millions | ||||||||||||||
| Committed |
||||||||||||||||
| £500m Senior Notes 8.125% 2018 |
500.0 | 2018 | 500.0 | 0.0 | ||||||||||||
| $410m Senior Notes 7.75% 2018 |
263.3 | 2018 | 263.3 | 0.0 | ||||||||||||
| $410m Senior Notes 8.125% 2021 |
263.3 | 2021 | 263.3 | 0.0 | ||||||||||||
| Bank & other loans |
287.3 | 2012-18 | 201.3 | 186.0 | ||||||||||||
| Receivables factoring facilities |
220.5 | 2011-12 | 171.0 | 49.6 | ||||||||||||
| Preference shares |
157.0 | — | 157.0 | 0.0 | ||||||||||||
| Subtotal |
1,791.4 | 1,555.8 | 235.6 | |||||||||||||
| Uncommitted |
||||||||||||||||
| Receivables factoring facilities |
468.4 | 2011 | 0.0 | 468.4 | ||||||||||||
| Other facilities |
17.1 | — | 17.1 | 0.0 | ||||||||||||
| Subtotal |
485.5 | 17.1 | 468.4 | |||||||||||||
|
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| Capitalized costs |
— | — | (30.3 | ) | — | |||||||||||
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| Total |
2,277.0 | 1,542.9 | 734.3 | |||||||||||||
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Cash flow data
Net cash provided by operating activities was £475.1 million in the quarter (H1 FY12: £986.3 million) compared to £495.6 million during Q2 FY11 (H1 FY11: £691.9 million).
Net cash used in investing activities increased to £355.7 million in the quarter (H1 FY12: £752.5 million), compared with £179.2 million in Q2 FY11 (H1 FY11: £358.6 million). Purchase of property, plant and equipment and expenditure on intangible assets (product development projects) was £346.9 million in the quarter (H1 FY12: £720.6 million) and £191.1 million in Q2 FY11 (H1 FY11: £358.0 million). The company’s capital expenditure relates mostly to capacity expansion of its production facilities, quality and reliability improvement projects, and the introduction of new products, including costs associated with the development of the Range Rover Evoque.
7
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 short-term debt. Cash used in financing activities in the three months ended 30 September 2010 reflected the repayment of short term debt of £187.0 million and finance expenses of £15.0 million.
Cash generated in H1 FY12 included £1,000 million relating to the bond issuance and net repayment of £893.8 million of other funding. Cash used in H1 FY11 included net debt repayments of £248.4 million.
There were no material acquisitions in the period.
Off-balance sheet financial arrangements
The company has no off-balance sheet financial arrangements other than commitments disclosed in Note 20 of the condensed interim financial statements.
The following table provides information with respect to members of the Board of Directors of Jaguar Land Rover:
| Name |
Position |
Year appointed as Director, Chief Executive Officer | ||
| Ratan N. Tata |
Chairman and Director | 2008 | ||
| Ravi Kant |
Director | 2008 | ||
| Andrew M. Robb |
Director | 2009 | ||
| Dr. Ralf D. Speth |
Chief Executive Officer and Director | 2010 |
Carl-Peter Forster resigned from the Board of Directors with immediate effect on the 9th of September. However, at the request of the Board, Mr. Forster will continue to serve the Board of Tata Motors Limited as a non-executive member. Dr. Ralf Speth, CEO of Jaguar Land Rover, will represent JLR operations on the Board of Tata Motors Limited.
8
Condensed Consolidated Income Statement
for the three months ended 30 September 2011 (Unaudited)
| Three months ended 30 September 2011 |
Three months ended 30 September 2010 |
|||||||||||||||||||||||||||
| Trading result £m |
Non operating result £m |
Total | Trading result £m |
Non operating result £m |
Total | |||||||||||||||||||||||
| Note | ||||||||||||||||||||||||||||
| Revenue |
2,914.9 | — | 2,914.9 | 2,232.0 | — | 2,232.0 | ||||||||||||||||||||||
| Material and other cost of sales |
(1,902.2 | ) | — | (1,902.2 | ) | (1,382.8 | ) | — | (1,382.8 | ) | ||||||||||||||||||
| Employee cost |
(235.4 | ) | — | (235.4 | ) | (188.9 | ) | — | (188.9 | ) | ||||||||||||||||||
| Other expenses |
(555.0 | ) | (555.0 | ) | (436.4 | ) | — | (436.4 | ) | |||||||||||||||||||
| MTM on un-hedged commodity derivatives |
— | (11.9 | ) | (11.9 | ) | — | — | — | ||||||||||||||||||||
| Development costs capitalised |
2 | 190.3 | — | 190.3 | 122.0 | — | 122.0 | |||||||||||||||||||||
| Other income |
19.3 | — | 19.3 | 15.1 | — | 15.1 | ||||||||||||||||||||||
| Depreciation and amortisation |
(113.4 | ) | — | (113.4 | ) | (94.2 | ) | — | (94.2 | ) | ||||||||||||||||||
| Foreign exchange (loss) / gain |
3 | 22.4 | — | 22.4 | (10.8 | ) | — | (10.8 | ) | |||||||||||||||||||
| MTM on un-hedged foreign exchange derivatives |
3 | — | (81.9 | ) | (81.9 | ) | — | — | — | |||||||||||||||||||
| Finance income |
4 | 3.7 | — | 3.7 | 2.4 | — | 2.4 | |||||||||||||||||||||
| Finance expense (net of capitalised interest) |
4 | (35.0 | ) | — | (35.0 | ) | 1.3 | — | 1.3 | |||||||||||||||||||
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| Net income before tax |
309.6 | (93.8 | ) | 215.8 | 259.7 | — | 259.7 | |||||||||||||||||||||
| Income tax expense |
(43.5 | ) | — | (43.5 | ) | (21.1 | ) | — | (21.1 | ) | ||||||||||||||||||
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| Net income attributable to shareholders |
266.1 | (93.8 | ) | 172.3 | 238.6 | — | 238.6 | |||||||||||||||||||||
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9
Condensed Consolidated Income Statement
for the six months ended 30 September 2011 (Unaudited)
| Note | Six months ended 30 September 2011 |
Six months ended 30 September 2010 |
||||||||||||||||||||||||||
| Trading result £m |
Non operating result £m |
Total | Trading result £m |
Non operating result £m |
Total | |||||||||||||||||||||||
| Revenue |
5,618.4 | — | 5,618.4 | 4,485.2 | — | 4,485.2 | ||||||||||||||||||||||
| Material and other cost of sales |
(3,676.3 | ) | — | (3,676.3 | ) | (2,786.3 | ) | — | (2,786.3 | ) | ||||||||||||||||||
| Employee cost |
(445.1 | ) | — | (445.1 | ) | (378.8 | ) | — | (378.8 | ) | ||||||||||||||||||
| Other expenses |
(1,097.0 | ) | — | (1,097.0 | ) | (913.7 | ) | — | (913.7 | ) | ||||||||||||||||||
| MTM on un-hedged commodity derivatives |
— | (11.9 | ) | (11.9 | ) | — | — | — | ||||||||||||||||||||
| Development costs capitalised |
2 | 366.2 | — | 366.2 | 244.3 | — | 244.3 | |||||||||||||||||||||
| Other income |
27.8 | — | 27.8 | 24.0 | — | 24.0 | ||||||||||||||||||||||
| Depreciation and amortisation |
(206.4 | ) | — | (206.4 | ) | (185.2 | ) | — | (185.2 | ) | ||||||||||||||||||
| Foreign exchange (loss) / gain |
3 | 24.6 | — | 24.6 | 32.4 | — | 32.4 | |||||||||||||||||||||
| MTM on un-hedged foreign exchange derivatives |
3 | — | (80.9 | ) | (80.9 | ) | — | — | — | |||||||||||||||||||
| Finance income |
4 | 7.4 | — | 7.4 | 4.4 | — | 4.4 | |||||||||||||||||||||
| Finance expense (net of capitalised interest) |
4 | (59.4 | ) | — | (59.4 | ) | (7.7 | ) | — | (7.7 | ) | |||||||||||||||||
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| Net income before tax |
560.2 | (92.8 | ) | 467.4 | 518.6 | — | 518.6 | |||||||||||||||||||||
| Income tax expense |
(75.3 | ) | — | (75.3 | ) | (34.3 | ) | — | (34.3 | ) | ||||||||||||||||||
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| Net income attributable to shareholders |
484.9 | (92.8 | ) | 392.1 | 484.3 | — | 484.3 | |||||||||||||||||||||
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10
Condensed Consolidated Statement of Comprehensive Income
for the three and six months ended 30 September 2011
| Three months ended 30 September 2011 (Unaudited) £m |
Three months ended 30 September 2010 (Unaudited) £m |
Six months ended 30 September 2011 (Unaudited) £m |
Six months
ended 30 September 2010 (Unaudited) £m |
|||||||||||||
| Net income attributable to shareholders |
172.3 | 238.6 | 392.1 | 484.3 | ||||||||||||
| Other comprehensive income: |
||||||||||||||||
| Currency translation gains |
— | 73.0 | — | 80.5 | ||||||||||||
| Actuarial gains and losses |
(49.0 | ) | (14.6 | ) | (49.0 | ) | (38.4 | ) | ||||||||
| Cash flow hedges booked into equity |
(35.1 | ) | 15.9 | (37.8 | ) | 15.9 | ||||||||||
| Cash flow hedges moved from equity and recognised in the income statement |
(23.4 | ) | — | (31.4 | ) | — | ||||||||||
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| Total other comprehensive loss for the period |
(107.5 | ) | 74.3 | (118.2 | ) | 58.0 | ||||||||||
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| Total comprehensive income for the period attributable to shareholders |
64.8 | 312.9 | 273.9 | 542.3 | ||||||||||||
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11
Condensed Consolidated Balance Sheet
at 30 September 2011
| Note | 30 September 2011 | 31 March 2011 | ||||||||||
| £m (Unaudited) |
£m (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 | 2,144.6 | ||||||||||
| Deferred income taxes |
134.5 | 112.2 | ||||||||||
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| Total non current assets |
4,155.4 | 3,557.3 | ||||||||||
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| Current assets |
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| Cash and cash equivalents |
1,340.5 | 1,028.3 | ||||||||||
| Trade receivables |
578.3 | 567.2 | ||||||||||
| Other financial assets |
6 | 75.1 | 61.5 | |||||||||
| Inventories |
7 | 1,362.5 | 1,155.6 | |||||||||
| Other current assets |
8 | 447.4 | 293.2 | |||||||||
| Current income tax assets |
5.3 | 12.5 | ||||||||||
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| Total current assets |
3,809.1 | 3,118.3 | ||||||||||
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| Total assets |
7,964.5 | 6,675.6 | ||||||||||
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| Current liabilities |
||||||||||||
| Accounts payable |
2,723.4 | 2,384.8 | ||||||||||
| Short term borrowings and current portion of long term debt |
15 | 255.4 | 863.4 | |||||||||
| Other financial liabilities |
12 | 272.1 | 132.9 | |||||||||
| Provisions |
13 | 236.6 | 246.3 | |||||||||
| Other current liabilities |
14 | 556.7 | 360.2 | |||||||||
| Current income tax liabilities |
112.5 | 79.8 | ||||||||||
|
|
|
|
|
|||||||||
| Total current liabilities |
4,156.7 | 4,067.4 | ||||||||||
|
|
|
|
|
|||||||||
| Non-current liabilities |
||||||||||||
| Long term debt |
15 | 1,286.7 | 518.1 | |||||||||
| Other financial liabilities |
12 | 107.6 | 20.4 | |||||||||
| Deferred income taxes |
0.8 | 1.6 | ||||||||||
| Provisions |
13 | 663.4 | 592.7 | |||||||||
|
|
|
|
|
|||||||||
| Total non current liabilities |
2,058.5 | 1,132.8 | ||||||||||
|
|
|
|
|
|||||||||
| Total liabilities |
6,215.2 | 5,200.2 | ||||||||||
|
|
|
|
|
|||||||||
12
Condensed Consolidated Balance Sheet (continued)
at 30 September 2011
| 30 September
2011 £m (Unaudited) |
31 March
2011 £m (Audited) |
|||||||||||
| Note | ||||||||||||
| 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 | (191.9 | ) | ||||||||
|
|
|
|
|
|||||||||
| Equity attributable to equity holders of the company |
1,749.3 | 1,475.4 | ||||||||||
|
|
|
|
|
|||||||||
| Total liabilities and equity |
7,964.5 | 6,675.6 | ||||||||||
|
|
|
|
|
|||||||||
These condensed consolidated interim financial statements were approved by the board of directors on
Company registered number: 6477691
13
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 September 2011
| Ordinary
Shares £m |
Capital redemption reserve £m |
Reserves / accumulated deficit £m |
Total Equity £m |
|||||||||||||
| Balance at 31 March 2010 (Audited) |
644.6 | — | (1,107.4 | ) | (462.8 | ) | ||||||||||
| Net income for the six months |
— | — | 484.3 | 484.3 | ||||||||||||
| Other comprehensive income for the six months |
— | — | 58.0 | 58.0 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total comprehensive income for the period |
— | — | 542.3 | 542.3 | ||||||||||||
| Cancellation of preference shares |
— | — | (47.8 | ) | (47.8 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Balance at 30 September 2010 (Unaudited) |
644.6 | — | (517.3 | ) | 127.3 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Ordinary
shares £m |
Capital redemption reserve £m |
Reserves / accumulated deficit £m |
Total Equity £m |
|||||||||||||
| Balance at 31 March 2011 (Audited) |
1,500.6 | 166.7 | (191.9 | ) | 1,475.4 | |||||||||||
| Net income for the six months |
— | — | 392.1 | 392.1 | ||||||||||||
| Other comprehensive loss for the six months |
— | — | (118.2 | ) | (118.2 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total comprehensive income for the period |
— | — | 273.9 | 273.9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Balance at 30 September 2011 (Unaudited) |
1,500.6 | 166.7 | 82.0 | 1,749.3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
14
Condensed Consolidated Cash Flow Statement
for the six months ended 30 September 2011
| Six months
ended 30 September 2011 (Unaudited) £m |
Six months ended 30 September 2010 (Unaudited) £m |
|||||||
| Cash flows from operating activities |
||||||||
| Net income attributable to shareholders |
392.1 | 484.3 | ||||||
| Depreciation and amortisation |
206.4 | 185.2 | ||||||
| Loss on sale of assets |
3.1 | — | ||||||
| Foreign exchange loss / (gain) on loans |
28.8 | (5.9 | ) | |||||
| Income tax expense |
75.3 | 34.3 | ||||||
| Finance expense |
59.4 | 7.7 | ||||||
| Finance income |
(7.4 | ) | (4.4 | ) | ||||
| Exchange loss on derivatives |
93.2 | (2.2 | ) | |||||
| Share of joint venture profit |
(0.2 | ) | — | |||||
|
|
|
|
|
|||||
| Cash flows from operating activities |
850.7 | 699.0 | ||||||
| Movement in trade receivables |
(11.1 | ) | 101.8 | |||||
| Movement in other financial assets |
3.0 | 14.4 | ||||||
| Movement in other current assets |
(154.2 | ) | (22.5 | ) | ||||
| Movement in inventories |
(206.9 | ) | (66.9 | ) | ||||
| Movement in other non-current assets |
— | (0.9 | ) | |||||
| Movement in accounts payable |
339.7 | 109.7 | ||||||
| Movement in other current liabilities |
196.5 | (54.6 | ) | |||||
| Movement in other financial liabilities |
13.4 | (8.8 | ) | |||||
| Movement in non-current liabilities |
(6.0 | ) | (55.4 | ) | ||||
| Movement in provisions |
15.8 | 5.1 | ||||||
|
|
|
|
|
|||||
| Cash generated from operations |
1,040.9 | 720.9 | ||||||
| Income tax paid |
(54.6 | ) | (29.0 | ) | ||||
|
|
|
|
|
|||||
| Net cash from operating activities |
986.3 | 691.9 | ||||||
|
|
|
|
|
|||||
| Cash flows used in investing activities |
||||||||
| Investment in associate |
(0.8 | ) | — | |||||
| Change in restricted deposit |
(38.4 | ) | (4.4 | ) | ||||
| Finance income received |
7.3 | 3.7 | ||||||
| Purchases of property, plant and equipment (net) |
(361.5 | ) | (189.1 | ) | ||||
| Acquisition of intangible assets |
(359.1 | ) | (168.9 | ) | ||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(752.5 | ) | (358.6 | ) | ||||
|
|
|
|
|
|||||
15
Condensed Consolidated Cash Flow Statement (continued)
for the six months ended 30 September 2011
| Six months ended 30 September 2011 (Unaudited) £m |
Six months
ended 30 September 2010 (Unaudited) £m |
|||||||
| Cash flows (used in) / from financing activities |
||||||||
| Finance expense and fees paid |
(45.7 | ) | (33.2 | ) | ||||
| Proceeds from issuance of short-term debt |
20.0 | 81.8 | ||||||
| Repayment of short-term debt |
(629.4 | ) | (330.2 | ) | ||||
| Payment of lease liabilities |
(2.1 | ) | (2.0 | ) | ||||
| Proceeds from issuance of long-term debt |
1,000.0 | — | ||||||
| Repayment of long-term debt |
(264.4 | ) | — | |||||
|
|
|
|
|
|||||
| Net cash from financing activities |
78.4 | (283.6 | ) | |||||
|
|
|
|
|
|||||
| Net change in cash and cash equivalents |
312.2 | 49.7 | ||||||
| Cash and cash equivalents at beginning of six months |
1,028.3 | 679.9 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents at end of six months |
1,340.5 | 729.6 | ||||||
|
|
|
|
|
|||||
16
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 consolidated interim financial statements of Jaguar Land Rover PLC have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting’ as IFRS as adopted by the European Union (‘EU’). There were no difference between these accounts and the accounts for the group prepared under IFRS as adopted by the International Accounting Standards Board.
The condensed consolidated interim financial statements have been prepared on historical cost basis except for certain financial instruments held at fair value.
The condensed consolidated interim financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 31 March 2011, which were prepared in accordance with IFRS as adopted by the EU. There were no difference between those accounts and the accounts for the group prepared under IFRS as adopted by the International Accounting Standards Board.
The condensed consolidated interim financial statements have been prepared on the going concern basis as set out within the directors’ statement of responsibility section of the group’s annual report for the year ended 31 March 2011.
The accounting policies applied are consistent with those of the annual consolidated financial statements for the year ended 31 March 2011, as described in those financial statements.
17
Notes (continued)
| 2 | Research and development |
| Three months ended 30 September 2011 (Unaudited) £m |
Three months ended 30 September 2010 (Unaudited) £m |
Six months ended 30 September 2011 (Unaudited) £m |
Six months ended 30 September 2010 (Unaudited) £m |
|||||||||||||
| Total R&D costs |
224.3 | 144.0 | 426.6 | 277.7 | ||||||||||||
| R&D expensed |
(34.0 | ) | (22.0 | ) | (60.4 | ) | (33.4 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Development costs capitalised |
190.3 | 122.0 | 366.2 | 244.3 | ||||||||||||
| Interest capitalised |
16.0 | 12.6 | 31.7 | 22.8 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total development additions to intangible assets |
206.3 | 134.6 | 397.9 | 267.1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 3 | Foreign exchange |
| Three months ended 30 September 2011 (Unaudited) £m |
Three months ended 30 September 2010 (Unaudited) £m |
Six months ended 30 September 2011 (Unaudited) £m |
Six months ended 30 September 2010 (Unaudited) £m |
|||||||||||||
| Trading foreign exchange gain / (loss) |
38.0 | (20.0 | ) | 53.4 | 36.1 | |||||||||||
| Foreign exchange loss on foreign currency denominated borrowings |
(15.6 | ) | 9.2 | (28.8 | ) | (3.7 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Foreign exchange before MTM |
22.4 | (10.8 | ) | 24.6 | 32.4 | |||||||||||
| Mark to market on foreign exchange derivative instruments not designated as a hedge relationship |
(81.9 | ) | — | (80.9 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total foreign exchange (loss) / gain |
(59.5 | ) | (10.8 | ) | (56.3 | ) | 32.4 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Mark to market on foreign exchange derivative instruments represents economic hedges. These instruments, however do not meet the treatment for hedge accounting under IFRS.
18
Notes (continued)
| 4 | Finance income and expense |
Recognised in net income
| Three months ended 30 September 2011 (Unaudited) |
Three months ended 30 September 2010 (Unaudited) |
Six months ended 30 September 2011 (Unaudited) |
Six months ended 30 September 2010 (Unaudited) |
|||||||||||||
| £m | £m | £m | £m | |||||||||||||
| Finance income |
3.7 | 2.4 | 7.4 | 4.4 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total finance income |
3.7 | 2.4 | 7.4 | 4.4 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Three months ended 30 September 2011 (Unaudited) |
Three months ended 30 September 2010 (Unaudited) |
Six months ended 30 September 2011 (Unaudited) |
Six months ended 30 September 2010 (Unaudited) |
|||||||||||||
| £m | £m | £m | £m | |||||||||||||
| Total finance expense on financial liabilities measured at amortised cost |
32.5 | 20.9 | 88.2 | 44.4 | ||||||||||||
| Impact of discount on provisions |
18.5 | (9.6 | ) | 2.9 | (13.9 | ) | ||||||||||
| Finance expense transferred to capitalised product development |
(16.0 | ) | (12.6 | ) | (31.7 | ) | (22.8 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total finance expense / (income) |
35.0 | (1.3 | ) | 59.4 | 7.7 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 6.4% (six months to 30 September 2010: 6.3%)
| 5 | Allowances for trade and other receivables |
Changes in the allowances for trade and other receivables are as follows:
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| At beginning of period |
10.1 | 16.3 | ||||||
| Allowance made in the period |
1.2 | 1.5 | ||||||
| Allowance released in the period |
(2.8 | ) | (7.7 | ) | ||||
|
|
|
|
|
|||||
| At end of period |
8.5 | 10.1 | ||||||
|
|
|
|
|
|||||
19
Notes (continued)
| 6 | Other financial assets - current |
| 30 September 2011 (Unaudited) |
31 March 2011 (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 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Raw materials and consumables |
61.0 | 38.5 | ||||||
| Work-in-progress |
135.1 | 87.1 | ||||||
| Finished goods |
1,166.4 | 1,030.0 | ||||||
|
|
|
|
|
|||||
| 1,362.5 | 1,155.6 | |||||||
|
|
|
|
|
|||||
| 8 | Other current assets |
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Prepaid expenses |
34.5 | 35.0 | ||||||
| VAT |
412.9 | 258.2 | ||||||
|
|
|
|
|
|||||
| 447.4 | 293.2 | |||||||
|
|
|
|
|
|||||
| 9 | Taxation |
Recognised in the income statement
The income tax for the 3 and 6 month periods are charged at the best estimate of the effective annual rate expected to apply for the full year at each subsidiary undertaking.
| 10 | Capital expenditure |
Capital expenditure in the period was £361.5 million (6 month period to 30 September 2010: £189.1 million) on fixed assets and £359.1 million (6 month period to 30 September 2010: £168.9 million) on intangible assets, mainly capitalised engineering. There were no impairments, material disposals or changes in use of assets.
20
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 us to provide a consistent global brand message and drive growth across all markets.
| 12 | Other financial liabilities |
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Current |
||||||||
| Liabilities for vehicles sold under a repurchase arrangement |
135.3 | 121.4 | ||||||
| Finance lease obligations |
4.9 | 5.2 | ||||||
| Interest accrued |
37.8 | 1.1 | ||||||
| Derivative financial instruments |
94.1 | 5.2 | ||||||
|
|
|
|
|
|||||
| 272.1 | 132.9 | |||||||
|
|
|
|
|
|||||
| Non Current |
||||||||
| Finance lease obligations |
16.9 | 18.7 | ||||||
| Long term derivatives |
89.5 | — | ||||||
| Other payables |
1.2 | 1.7 | ||||||
|
|
|
|
|
|||||
| 107.6 | 20.4 | |||||||
|
|
|
|
|
|||||
| 13 | Provisions |
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Current |
||||||||
| Product warranty |
217.9 | 226.3 | ||||||
| Product liability |
16.7 | 19.1 | ||||||
| Provision for residual risk |
2.0 | 0.9 | ||||||
|
|
|
|
|
|||||
| Total current |
236.6 | 246.3 | ||||||
|
|
|
|
|
|||||
| Non current |
||||||||
| Defined benefit obligations |
332.1 | 290.5 | ||||||
| Other retirement obligations |
1.9 | 1.0 | ||||||
| Product warranty |
298.0 | 276.8 | ||||||
| Provision for residual risk |
10.9 | 6.1 | ||||||
| Provision for environmental liability |
20.5 | 18.3 | ||||||
|
|
|
|
|
|||||
| Total non current |
663.4 | 592.7 | ||||||
|
|
|
|
|
|||||
21
Notes (continued)
| 13 | Provisions (continued) |
Product warranty
| 30 September 2011 (Unaudited) |
31 March 2011 (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 | ||||||
|
|
|
|
|
|||||
Product liability
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Opening balance |
19.1 | 30.6 | ||||||
| Provision made during the period |
8.2 | 6.8 | ||||||
| Provisions used in the period |
(10.6 | ) | (18.3 | ) | ||||
|
|
|
|
|
|||||
| Closing balance |
16.7 | 19.1 | ||||||
|
|
|
|
|
|||||
Residual risk
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Opening balance |
7.0 | 15.8 | ||||||
| Provision made during the period |
7.2 | 22.5 | ||||||
| Provision used during the period |
(1.3 | ) | (31.3 | ) | ||||
|
|
|
|
|
|||||
| Closing balance |
12.9 | 7.0 | ||||||
|
|
|
|
|
|||||
Environmental liability
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Opening balance |
18.3 | 18.8 | ||||||
| Provision made during the period |
2.5 | — | ||||||
| Provision used during the period |
(0.3 | ) | (0.5 | ) | ||||
|
|
|
|
|
|||||
| Closing balance |
20.5 | 18.3 | ||||||
|
|
|
|
|
|||||
22
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 product liability provision is maintained in respect of known litigation which the group is party to.
Residual risk provision
In certain markets, the group is responsible for the residual risk arising on vehicles sold by dealers on leasing arrangements. The provision is based on the latest available market expectations of future residual value trends. The timing of the outflows will be at the end of the lease arrangements – being typically up to three years.
Environmental risk provision
This provision relates to various environmental remediation costs such as asbestos removal and land clean up. The timing of when these costs will be incurred is not known with certainty.
| 14 | Other current liabilities |
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Liability for advances received |
183.4 | 162.8 | ||||||
| VAT payable |
354.1 | 178.6 | ||||||
| Others |
19.1 | 18.8 | ||||||
|
|
|
|
|
|||||
| 556.7 | 360.2 | |||||||
|
|
|
|
|
|||||
23
Notes (continued)
| 15 | Interest bearing loans and borrowings |
| 30 September 2011 (Unaudited) |
31 March 2011 (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 liabilities |
21.8 | 23.9 | ||||||
|
|
|
|
|
|||||
| 1,563.9 | 1,405.4 | |||||||
| Less: |
||||||||
| Current portion of bank loans |
(255.4 | ) | (428.5 | ) | ||||
| Current portion of other loans |
— | (434.9 | ) | |||||
|
|
|
|
|
|||||
| Total short term borrowings and current portion of long term debt |
(255.4 | ) | (863.4 | ) | ||||
| Current portion of finance lease liabilities |
(4.9 | ) | (5.2 | ) | ||||
|
|
|
|
|
|||||
| Long term debt |
1,303.6 | 536.8 | ||||||
|
|
|
|
|
|||||
| Presented as long-term debt |
1,286.7 | 518.1 | ||||||
| Presented as long-term finance lease in non-current other financial liabilities |
16.9 | 18.7 | ||||||
On 19 May 2011, the company issued £1,000 million of listed bonds. The bonds are listed on the Euro MTF market, which is a listed market regulated by the Luxembourg Stock Exchange.
The bonds are fixed rate with £500 million denominated in GBP and £500 million denominated in USD. £750 million is due for repayment in 2018 and the remaining is due in 2021.
The bond funds raised are used to repay both long and short term debt and provide additional cash facilities for the group.
| 16 | Other reserves |
The movement of reserves and accumulated deficit is as follows:
| Translation reserve |
Hedging reserve |
Pension Reserve |
Profit and loss reserve |
Total Reserves / |
||||||||||||||||
| £m | £m | £m | £m | £m | ||||||||||||||||
| Balance at 1 April 2011 |
(383.3 | ) | 21.8 | (535.2 | ) | 704.8 | (191.9 | ) | ||||||||||||
| Net income for the period |
— | — | — | 392.1 | 392.1 | |||||||||||||||
| Loss on cash flow hedge |
— | (69.3 | ) | — | — | (69.3 | ) | |||||||||||||
| Deferred tax |
— | 2.8 | (2.8 | ) | — | — | ||||||||||||||
| Movements in employee benefit plan |
— | — | (49.0 | ) | — | (49.0 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance at 30 September 2011 |
(383.3 | ) | (44.7 | ) | (587.0 | ) | 1,096.9 | 82.0 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
24
Notes (continued)
| 16 | Other reserves (continued) |
| Translation reserve |
Hedge reserve |
Pension Reserve |
Accumulated deficit: profit and loss reserve |
Total Reserves / |
||||||||||||||||
| £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 | 1,035.9 | |||||||||||||||
| Foreign currency translation |
123.4 | — | — | — | 123.4 | |||||||||||||||
| Gain on cash flow hedge |
— | 29.5 | — | — | 29.5 | |||||||||||||||
| Cancellation of preference shares |
— | — | — | 47.8 | 47.8 | |||||||||||||||
| Deferred tax |
— | (7.7 | ) | 7.7 | — | — | ||||||||||||||
| Movements in employee benefit plan |
— | — | (321.1 | ) | — | (321.1 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance at 31 March 2011 |
(383.3 | ) | 21.8 | (535.2 | ) | 704.8 | (191.9 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 17 | Capital redemption reserve |
On 31 March 2011, the company converted all of its USD ordinary share capital and all of its USD preference shares into £1,500.6 million of £1 Ordinary shares and £157.1 million of £1 7.25% preference shares. In the process, a capital redemption reserve of £166.7 million was created.
| 18 | Dividends |
During both the periods no dividends were paid or proposed on the ordinary shares. A dividend of £5.6 million (6 month period to 30 September 2010: £nil) was accrued on the non-cumulative preference shares.
25
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 Limited, Land Rover, UK and overseas subsidiaries which operate defined benefit pension plans.
Change in net pension liability
| Six months ended (Unaudited) |
Year to 31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Net pension liability at beginning of the period |
(289.6 | ) | (101.0 | ) | ||||
| Service cost |
(50.9 | ) | (106.4 | ) | ||||
| Interest cost |
(119.7 | ) | (216.1 | ) | ||||
| Actuarial loss |
(140.4 | ) | (195.8 | ) | ||||
| Expected return on assets |
120.2 | 241.6 | ||||||
| Employer contributions and other changes |
57.9 | 213.4 | ||||||
| Change in restriction on asset and onerous obligation |
91.4 | (125.3 | ) | |||||
|
|
|
|
|
|||||
| Net pension liability at end of period |
(331.1 | ) | (289.6 | ) | ||||
|
|
|
|
|
|||||
Amount recognised in the balance sheet consists of
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Present value of defined benefit obligations |
(4,452.4 | ) | (4,300.1 | ) | ||||
| Fair value of plan assets |
4,191.4 | 4,172.0 | ||||||
| Restriction on asset and onerous obligation |
(70.1 | ) | (161.5 | ) | ||||
|
|
|
|
|
|||||
| Net liability |
(331.1 | ) | (289.6 | ) | ||||
|
|
|
|
|
|||||
| Non current assets |
1.0 | 0.9 | ||||||
| Non current liabilities |
(332.1 | ) | (290.5 | ) | ||||
26
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 | ||||||
| Expected rate of return on plan assets |
6.0 | 6.5 | ||||||
For the valuation at 31 March 2011, the mortality assumptions used are the SAPS base table, in particular S1PMA for males, S1PFA for females and the Light table for members of the Jaguar Executive Pension Plan, with a scaling factor of 90% for males and 115% for females for all members. There is an allowance for future improvements in line with the CMI (2010) projections and an allowance for long term improvements of 1.00% per annum.
27
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 necessary. The group records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the group provides a disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.
The following is a description of claims and assertions where a potential loss is possible, but not probable. Management believe that none of the contingencies described below, either individually or in aggregate, would have a material adverse effect on the group’s financial condition, results of operations, or cash flows.
Litigation
The group is involved in legal proceedings, both as plaintiff and as defendant and there are claims of £17.1 million (31 March 2011: £10.8 million) which management have not recognised as they are not considered probable.
Other claims
There are other claims against the group, the majority of which pertains to motor accident claims and consumer complaints. Some of the cases also relate to replacement of parts of vehicles and/or compensation for deficiency in the services by the group or its dealers. The group has not provided £1.3 million (31 March 2011: £1.4 million) for tax matters in dispute as it is not considered probable that these will be settled in an adverse position for the group.
Commitments
The group has entered into various contracts with vendors and contractors for the acquisition of plant and machinery, equipment and various civil contracts of capital nature aggregating £376.2 million (31 March 2011: £451.5 million) and £2.4 million (31 March 2011: £3.5 million) relating to the acquisition of intangible assets.
The group has entered into
various contracts with vendors and contractors which include obligations aggregating £862.4 million
(31 March 2011: £689.0 million) to purchase minimum or fixed quantities of material.
There are guarantees provided in the ordinary course of business of £21.9 million (31 March 2011: £23.3 million), of which £14.6 million (31 March 2011: £14.3 million) are to HMRC.
Financial Instruments
During the three month period to 30 September 2011, the group entered into a number of cash flow derivative contracts to manage its foreign currency exposure. To the extent allowed under IAS 39 ‘Financial Instruments: Recognition and Measurement’ the derivatives are accounted for as cash flow hedges.
28
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-term product and other strategic investment plans. The funding requirements are met through a mixture of equity, convertible or non-convertible debt securities and other long-term/short-term borrowings. The company’s policy is aimed at a combination of short-term and long-term borrowings.
The company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the company.
Total debt includes all long and short-term debts as disclosed in note 15 to the financial statements. Equity comprises all reserves.
The following table summarises the capital of the company:
| 30 September 2011 (Unaudited) |
31 March 2011 (Audited) |
|||||||
| £m | £m | |||||||
| Equity |
1,749.3 | 1,475.4 | ||||||
| Short term debt |
260.3 | 868.6 | ||||||
| Long term debt |
1,303.6 | 536.8 | ||||||
|
|
|
|
|
|||||
| Total debt |
1,563.9 | 1,405.4 | ||||||
|
|
|
|
|
|||||
| Total capital (debt and equity) |
3,313.2 | 2,880.8 | ||||||
|
|
|
|
|
|||||
| 22 | Related party transactions |
The company’s related parties principally consist of Tata Sons Limited, subsidiaries of Tata Sons Limited, associates and joint ventures of Tata Sons Limited (including Tata Motors Limited). The company routinely enters into transactions with these related parties in the ordinary course of business. The company enters into transactions for the sale and purchase of products with its associates and joint ventures. Transactions and balances with its own subsidiaries are eliminated on consolidation.
The following table summarises related party transactions and balances included in the consolidated condensed interim financial statements.
| Six months ended 30 September 2011 (Unaudited) |
Six months ended 30 September 2010 (Unaudited) |
|||||||||||||||
| With associates of the parent (Unaudited) |
With parent company (Unaudited) |
With associates of the parent (Unaudited) |
With parent company (Unaudited) |
|||||||||||||
| £m | £m | £m | £m | |||||||||||||
| Sale of products |
27.4 | — | 14.78 | — | ||||||||||||
| Services received |
19.6 | — | 21.95 | — | ||||||||||||
| Trade and other receivables |
6.4 | — | 2.2 | — | ||||||||||||
| Accounts payable |
9.9 | — | 6.6 | — | ||||||||||||
| Loans payable |
— | — | — | 2,271.6 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
29
Notes (continued)
| 22 | Related party transactions (continued) |
Compensation of key management personnel
| Six months ended 30 September 2011 (Unaudited) |
Six months ended 30 September 2010 (Unaudited) |
|||||||
| £m | £m | |||||||
| Short-term benefits |
6.3 | 3.7 | ||||||
|
|
|
|
|
|||||
30
Jaguar Land Rover PLC
Banbury Road
Gaydon
Warwickshire
CV35 0RG
31
Jaguar Land Rover Results for the period ended 30 Sept 2011
14 November 2011
LAND ROVER
JAGUAR
Disclaimer
Statements in this presentation describing the objectives, projections, estimates and expectations of Jaguar Land Rover PLC and its direct and indirect subsidiaries (the “Company”, “Group” or “JLR”) 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.
Q2 FY12 represents the period from 1 July 2011 to 30 September 2011
Q2 FY11 represents the period from 1 July 2010 to 30 September 2010
H1 FY12 represents the period from 1 April 2011 to 30 September 2011
H1 FY11 represents the period from 1 April 2010 to 30 September 2010
Consolidated results of Jaguar Land Rover PLC and its subsidiaries contained in the presentation are under IFRS as approved in the EU
2
Participants
Unni Menon
Group Finance Director Jaguar Land Rover PLC
Kenneth Gregor
CFO Jaguar Land Rover
Bennett Birgbauer
Treasurer Jaguar Land Rover
C. Ramakrishnan
CFO Tata Motors
Vijay Somaiya
Head of Treasury & Investor Relations Tata Motors
3
Agenda
Key topics Page
Financial performance 5
Looking ahead 15
Closing Q&A 19
4
Financial performance
Retail volumes 65,682 units, up 9,262 units or 16% Wholesale volumes 68,000 units, up 12,866 units or 23%
EBITDA £420m, compared to £361m
Profit before tax £216m, compared to £260m
Profit before tax includes £94m unfavourable revaluation of fx option and commodity hedges - excluding these items PBT would have been £310m
Free cash flow (before financing) £119m, compared to £229m reflecting higher capital spending offset partially by higher cash flow from operations
Cash and money market investments £1.3bn and undrawn committed bank lines £236m
1 comparisons are with Q2 of FY11 under IFRS
5
Key financial metrics
Key metrics - IFRS
Quarter Ended 30 Sept Half Year Ended 30 Sept
(£ millions, unless stated) 2011 2010 Change 2011 2010 Change
Retail volumes (‘000 units) 66 56 16% 129 116 12%
Wholesale volumes (‘000 units) 68 55 23% 130 114 14%
Revenues 2,915 2,232 683 5,618 4,485 1,133
EBITDA 420 361 59 782 675 108
EBITDA % 14.4% 16.2%(1.8) ppt 13.9% 15.0% (1.1) ppt
Profit before tax 216 260 (44) 467 519 (52)
Free cash flow (1) 119 229 (109) 234 333 (99)
Cash 1,340 730 610 1,340 730 610
Memo :
Fx option and commodity hedge reval. impact (94) - (94)(93) - (93)
included in Profit before tax
1 cash from operating activities after investing activities
6
Significant improvement in underlying profitability versus prior year
Wholesale volumes up 12,866 units supported by launch of all-new Range Rover Evoque
Strong higher margin product mix, eg Range Rover, Range Rover Sport, Discovery and XJ
Continued strong growth in China and developing markets
Less favourable foreign exchange transaction rates (avg. £/$ rate 1.61 in Q2 FY12 vs 1.55 in Q2 FY11) offset partially by matured hedge contracts
Profit before tax includes £94m unfavourable revaluation of fx option and commodity hedge contracts outstanding at end Q2 FY12
Accounting policy generally requires these contracts to be revalued through the income statement at each quarter end (30 Sept £/$ rate 1.56). The unfavourable revaluation is largely a timing effect which would be expected to reverse and/or be more than offset by gains on the underlying exposure at maturity
7
Retail volumes by carline - quarter
Jaguar - Q2 FY12 vs Q2 FY11
down 6%
14,118
1,507 49
8,621
3,941
Q2 FY11
13,233
1,247 0 8,350
3,636
Q2 FY12
XK
X-Type
XF
XJ
Land Rover - Q2 FY12 vs Q2 FY11
up 24%
42,302
0 13,649 5,308 10,209 8,883
4,253
Q2 FY11
52,449
3,096 13,038 7,009 13,210 10,982 5,114
Q2 FY12
Range Rover Evoque Freelander
Range Rover
Range Rover Sport Discovery
Defender
8
Retail volumes by brand - Q2 by month
Jaguar - Q2 FY12 vs Q2 FY11
13,233
6,712
3,758 2,763
July Aug Sept Q2 FY12
Prior year 4,914 3,328 5,876 14,118
Change (24)% (17)% 14% (6)%
Land Rover - Q2 FY12 vs Q2 FY11
52,449
23,441
15,721
13,287
July Aug Sept Q2 FY12
Prior year 13,421 10,774 18,107 42,302
Change 17% 23% 29% 24%
9
Retail volumes by geography - quarter
UK
up 1%
14,806
10,182
4,624
Q2 FY11
14,996
10,635
4,361
Q2 FY12
North America
no change
12,068 12,106
7,951
4,117
Q2FY11
9,010
3,096
Q2 FY12
Europe (excl Russia)
up 5%
Russia
up 6%
China
up 87%
5,801
5,167
634
Q2 FY11
10,869
9,235
1,634
Q2 FY12
All Other Markets (RoW)
up 36%
11,833
9,108
2,725
Q2 FY11
12,458
10,127
2,331
Q2 FY12
3,170
2,909
261
Q2 FY11
3,369
3,091
278
Q2 FY12
8,742
6,985
1,757
Q2 FY11
11,884
10,351
1,533
Q2 FY12
Q2 FY12
All Other Markets (RoW) 18.1%
Russia 5.1%
Europe (excl.Russia) 19.0%
China 16.5%
UK 22.8%
North America 18.4%
Total: 65,682 units
Q2 FY11
All Other Markets (RoW) 15.5%
Russia 5.6%
Europe(excl. Russia) 21.0%
China 10.3%
UK 26.2%
North America 21.4%
Total: 56,420 units
Land Rover
Jaguar
10
Income statement
Consolidated income statement - IFRS
Quarter Ended 30 Sept Half Year Ended 30 Sept
(£ millions, unless stated) 2011 2010 Change 2011 2010 Change
Revenues 2,915 2,232 683 5,618 4,485 1,133
Material cost of sales(1,902)(1,383)(519)(3,676)(2,786)(890)
Employee costs(235)(189)(46)(445)(379)(66)
Other expenses (net)(548)(421)(127)(1,081)(889)(192)
Product dev. costs capitalised 190 122 68 366 244 122
EBITDA 420 361 59 782 675 107
Depreciation and amortisation(113)(94)(19)(206)(185)(21)
Foreign exch. gain/(loss) (net)(60)(11)(49)(57) 32(89)
Net finance expense(31) 4(35)(52)(3)(49)
Profit before tax 216 260(44) 467 519(52)
Income tax expense(44)(21)(23)(75)(35)(40)
Profit after tax 172 239(67) 392 484(91)
Memo:
Fx option and commodity hedge reval. impact(94) -(94)(93) -(93)
included in Profit before tax
11
Healthy cash generation
Consolidated cash flow statement - IFRS
Quarter Ended 30 Sept Half Year Ended 30 Sept
(£ millions, unless stated) 2011 2010 Change 2011 2010 Change
Cash from operating activities 471 330 141 851 699 152
WC changes & inc. tax paid 4 79(75) 136(7) 143
Cash flow from operations 475 409 66 986 692 294
Investment in tang. and intang. assets(347)(191)(156)(721)(358)(363)
Other (including finance income)(9) 11(20)(32)(1)(31)
Free cash flow (before financing) 119 229(110) 234 333(99)
Changes in debt(155)(188) 33 124(250) 374
Finance expenses and fees(7)(15) 8(46)(33)(13)
Net change in cash & cash equiv.(43) 26(69) 312 50 262
Cash & cash equiv. - beg. of period 1,383 704 679 1,028 680 348
Cash & cash equiv. - end of period 1,340 730 610 1,340 730 610
12
Sound financial health
Key financial indicators - IFRS
30 Sept 30 June
(£ millions, unless stated) Change
2011 2011
Cash 1,340 1,383(43)
Undrawn committed lines 1 236 265(29)
Undrawn uncommitted lines 468 464 4
Total liquidity 2,044 2,112(68)
Total equity 1,749 1,678 71
Net debt (excl. finance leases) 202 295(93)
Net debt / equity 11.5% 17.6%(6.1)ppt
1 includes £50m for a facility maturing in December 2011, expected to be renewed for another year
13
Agenda
Key topics Page
Financial performance 5
Looking ahead 15
Closing Q&A 19
14
Launching exciting new products Frankfurt Motor Show entrants
C-X16
“Great Jaguars have always been beautiful, innovative and have looked firmly to the future. The finished C-X16 concept has the potential to do these things while retaining the ability to surprise, to excite and to invigorate.”
- Ian Callum, Director of Design, Jaguar Cars
DC100
“Replacing the iconic Defender is one of the biggest challenges in the automotive design world; it is a car that inspires people worldwide. This isn’t a production-ready concept but the beginning of a four-year journey to design a relevant Defender for the 21st century.”
- Gerry McGovern, Director of Design, Land Rover
15
Other developments
All-new Range Rover Evoque launched from September onwards. Media response has been overwhelmingly positive and the car continues to attract new customers to the brand
Announcement of a £355m investment in a new, state-of-the-art advanced facility at Wolverhampton, UK to manufacture all-new, advanced technology, low emissions engines
Record intake of 336 graduate recruits started work at JLR in September 2011
JLR honoured with gold rating in the Corporate Responsibility Index 2011
JLR received Big Tick Award for its Environmental Innovation Programme
16
Summary
Strong underlying financial performance in Q2 FY12
Going forward in FY12 focus is on:
- continuing the market roll out of the all-new Range Rover Evoque - building on momentum of XF 12 MY and 2.2l diesel launch - launching other refreshed Jaguar and Land Rover products
- continuing to monitor economic and sales trends closely to balance sales and production
- continuing with planned investments in future new products and technologies to enable profitable growth and meet customer and regulatory CO2 requirements
17
Agenda
Key topics Page
Financial performance 5
Looking ahead 15
Closing Q&A 19
18
Q&A
19
Additional Slides
20
Strong balance sheet
Consolidated balance sheet - IFRS
30 Sept 31 March
(£ millions, unless stated) 2011 2011 Change
Cash & cash equivalents 1,340 1,028 312
Other assets 6,624 5,648 976
Total assets 7,964 6,676 1,288
Total debt (excl. finance leases) 1,542 1,382 160
Other liabilities 4,673 3,819 854
Total liabilities 6,215 5,201 1,014
Total equity 1,749 1,475 274
Total liabilities and equity 7,964 6,676 1,288
21
Income statement fx line detail
Foreign exchange
Quarter Ended 30 Sept Half Year Ended 30 Sept
(£ millions, unless stated) 2011 2010 Change 2011 2010 Change
Mark-to-mkt on Fx options(82) 2(84)(81) 2(83)
Fx hedges maturing 10 - 10 32 - 32
Forex gain / (loss) on for. curr. borrowings(16) 9(25)(28) 9(36)
Revaln of other operating assets/liabilities 19(19) 38 6 16(11)
Other 9(3) 12 15 5 10
Total gain / (loss)(60)(11)(48)(56) 32(88)
Memo:
(12) -(12)(12) -(12)
Mark-to-mkt on commodity contracts
22
Retail volumes by carline - half year
Jaguar - H1 FY12 vs H1 FY11
down 8%
28,012
3,059 307
18,249
6,397
H1 FY11
25,790
2,701 4
15,082
8,003
H1 FY12
XK
X-Type
XF
XJ
Land Rover - H1 FY12 vs H1 FY11
up 18%
87,496
26,841
0 10,968
22,059
18,866
8,762
H1 FY11
103,168
26,023
3,096
14,563
27,064
22,496
9,926
H1 FY12
Freelander
Range Rover Evoque Range Rover
Range Rover Sport Discovery
Defender
23
Retail volumes by geography - half year
UK
down 8%
28,034
19,236
8,798
H1 FY11
25,663
18,364
7,299
H1 FY12
North America
up 5%
24,704
16,863
7,841
H1 FY11
26,024
18,785
7,239
H1 FY12
Europe (excl Russia)
down 2%
Russia
up 27%
China
up 66%
12,518
10,954
1,564
H1 FY11
20,812
17,812
3,000
H1 FY12
26,694
20,634
6,060
H1 FY11
26,271
21,709
4,562
H1 FY12
5,493
4,986
507
H1 FY11
6,959
6,398
561
H1 FY12
18,065
14,823
3,242
H1 FY11
23,229
20,100
3,129
H1 FY12
H1 FY12
All Other Markets (RoW) 18.0%
Russia 5.4%
Europe (excl.Russia) 20.4%
UK 19.9%
North America 20.2%
China 16.1%
Total: 128,958 units
H1 FY11
All Other Markets (RoW) 15.6%
Russia 4.8%
Europe(excl. Russia) 23.1%
UK 24.3%
North America 21.4%
China 10.8
Total: 115,508 units
Land Rover
Jaguar
24
Wholesale volumes by carline - quarter
Jaguar - Q2 FY12 vs Q2 FY11
down 7%
14,325
1,669 31
8,360
4,265
Q2 FY11
13,306
1,294 4
8,567
3,441
Q2 FY12
XK
X-Type XF
XJ
Land Rover - Q2 FY12 vs Q2 FY11
up 34%
40,809
13,122
0 5,215
9,921
8,785
3,766
Q2 FY11
54,694
12,296 7,772 6,558 12,273 10,679
5,116
Q2 FY12
Freelander
Range Rover Evoque Range Rover
Range Rover Sport Discovery
Defender
25
Wholesale volumes by carline - half year
Jaguar - H1 FY12 vs H1 FY11
down 17%
29,780
3,044 83
17,889
8,764
H1 FY11
24,649
2,455 11
15,016
7,167
H1 FY12
XK X-Type XF XJ
Land Rover - H1 FY12 vs H1 FY11
up 25%
84,555
25,961
0 10,656
21,609
18,193
8,136
H1 FY11
105,441
24,616
7,774
14,493
26,640
22,119
9,799
H1 FY12
Freelander
Range Rover Evoque Range Rover
Range Rover Sport Discovery
Defender
26
Wholesales volumes by geography - quarter
UK
up 7%
14,038
9,882
4,156
Q2 FY11
15,080
10,848
4,232
Q2 FY12
North America
down 12%
13,338
8,193
5,145
Q2 FY11
11,728
8,948
2,780
Q2 FY12
China
up 103%
5,365
4,947
418
Q2 FY11
10,880
9,175
1,705
Q2 FY12
Europe (excl. Russia) up 47%
10,570
8,068
2,502
Q2 FY11
15,549
13,102
2,447
Q2 FY12
3,230
2,985
245
Q2 FY11
3,429
3,154
275
Q2 FY12
Russia
up 6%
All Other Markets (RoW)
up 32%
8,593
6,734
1,859
Q2 FY11
11,334
9,467
1,867
Q2 FY12
Q2 FY12
All Other Markets (RoW) 16.7%
Russia 5.0%
Europe (excl.Russia) 22%
China 16.0%
UK 22.2%
North America 17.2%
Total: 68,000 units
Q2 FY11
All Other Markets (RoW) 15.6%
Russia 5.9%
Europe(excl. Russia) 19.2%
China 9.7%
UK 25.5%
North America 24.2%
Total: 55,134 units
Land Rover
Jaguar
27
Wholesale volumes by geography - half year
UK
down 5%
28,577
19,636
8,941
H1 FY11
27,146
19,533
7,613
H1 FY12
Europe (excl Russia)
up 12%
25,282
19,217
6,065
H1 FY11
28,199
23,601
4,598
H1 FY12
North America
down 7 %
26,736
16,635
10,101
H1 FY11
24,774
19,073
5,701
H1 FY12
China
up 94%
10,496
9,699
797
H1 FY11
20,405
17,465
2,940
H1 FY12
Russia
up 28%
All Other Markets (RoW)
up 27%
5,239
4,788
451
H1 FY11
6,715
6,164
551
H1 FY12
18,005
14,580
3,425
H1 FY11
22,851
19,605
3,246
H1 FY12
H1 FY12
All Other Markets (RoW) 17.6%
Russia 5.2%
Europe (excl.Russia) 22%
China 15.7%
UK 20.9%
North America 19.0%
Total: 130,090 units
H1 FY11
All Other Markets (RoW) 15.7%
Russia 4.6%
Europe(excl. Russia) 22.1%
China 9.2%
North America 23.4%
UK 25.0%
Total: 114,335 units
Land Rover
Jaguar
28
Product and other investment
Details- IFRS
Quarter Ended 30 Sept Half Year Ended 30 Sept
(£ millions, unless stated) 2011 2010 Change 2011 2010 Change
R&D expense
Capitalised 190 122 68 366 244 122
Expensed 34 22 12 60 33 27
Total R&D expense 224 144 80 427 278 149
Investment in tangible and other
157 69 88 354 113 241
intangible assets
Total product and other investment 381 213 168 781 391 390
29