JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL

Investor presentation

JAGUAR LAND ROVER AUTOMOTIVE PLCChief Financial Officer

A D R I A N M A R D E L L

18 J u l y 2 0 2 1

D I S C L A I M E R

© 2 0 2 1 J A G U A R L A N D R O V E R

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Statements in this presentation describing the objectives, projections, estimates and expectations of Jaguar Land Rover Autom otive 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 regulation s. 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, the effects of the COVID -19 pandemic, changes in Government regulations, tax laws and

other statutes and incidental factors. All forward -looking statements apply only as of the date hereof and we undertake no oblig ation to updated this information except as

required by law and do not assume any responsibil i ty for the ultimate fairness, accuracy, correctness or completeness of any such information presented herein.

- Q1 represents the 3 month period from 1 April to 30 June

- Q2 represents the 3 month period from 1 July to 30 September

- Q3 represents the 3 month period from 1 October to 31 December

- Q4 represents the 3 month period from 1 January to 31 March

- FY represents the 12 month period from 1 April to 31 March of the following year

Unless stated otherwise sales volumes are expressed in thousand units, f inancial values are in GBP mill ions.

Consolidated results of Jaguar Land Rover Automotive plc and its subsidiaries contained in the presentation are unaudited and presented under IFRS as approved in the EU.

Retail volume data includes sales from the Company’s unconsolidated Chinese joint venture (“CJLR”), these are excluded from W holesale volume data.

EBITDA is defined as profit before: income tax expense; exceptional items; f inance expense (net of capitalised interest) and f inance income; gains/losses on debt and unrealised

derivatives, realised derivatives entered into for the purpose of hedging debt, and equity or debt investments held at fair v alue; foreign exchange gains/losses on other assets and

l iabil it ies, including short-term deposits and cash and cash equivalents; share of profit/loss from equity accounted investments ; depreciation and amortisation.

EBIT is defined as EBITDA but including share of profit/loss from equity accounted investments, depreciation and amortisation .

Free cash flow is defined as net cash generated from operating activities less net cash used in automotive investing activiti es, excluding investments in consolidated entities and

movements in f inancial investments, and after f inance expenses and fees paid.

Certain analysis undertaken and represented in this document may constitute an estimate from the Company and may differ from the actual underlying results.

The information contained in his presentation is provided as of the date of this presentation and is subject to change withou t notice. The information contained in this document

may be updated, completed, revised and amended and such information may change materially in the future. The Group is under n o obligation to update or keep current the

information contained in this document.

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© 2 0 2 1 J A G U A R L A N D R O V E R 3© 2 0 2 1 J A G U A R L A N D R O V E R 3

Recent business developmentsQ1 sales up significantly, semiconductor supply challenges, record JLR order bank

Q1 retails up 68% YoY, chip supply constrained wholesales by 30k units

Strategy & Sustainability team formed to focus on clean mobility & connectivity

New long wheel base Range Rover Evoque launching from the China JV

Chip supply dynamic, expected to worsen in Q2, start to improve in H2

Record order bank of 110,000 units

Agreed increase in RCF to £2b through July ‘22 and to £1.43b through March ‘24

© 2 0 2 1 J A G U A R L A N D R O V E R 4

Strong Q4 PBT of £534m before exceptional items*, EBIT 7.5%Q4 cash flow £729m to achieve £185m for full year

Q4 & F Y 2 1 | IFRS, £m

0.1%

2.6%

FY20 FY21

(3.2)%

7.5%

Q4 FY20 Q4 FY21

E B I T

6.2% 15.3%E B I T D A

8.9% 12.8%E B I T D A

5,426

6,538

Q4 FY20 Q4 FY21

22,98419,731

FY20 FY21

R E V E N U E

YoY+20.5%

YoY(14.2)%

(494)

534

Q4 FY20 Q4 FY21

(393)

662

FY20 FY21

P B T *

YoY+1,028

YoY+1,055

105

729

Q4 FY20 Q4 FY21

(759)

185

FY20 FY21

F R E E C A S H F L O W

YoY+624

YoY+944

* Restructuring charges of £1.5b, including c. £1b of non-cash write-downs of prior investments and c. £0.5b cash restructuring charges (payable in FY22)

Q4

FY


109.9123.5

Q4 FY20 Q4 FY21

23.4 22.3

Q4 FY20 Q4 FY21

28.2 26.3

Q4 FY20 Q4 FY21

5

Q4 Retail sales 123.5k, up 12% YoY with China up 127%FY21 down 14% YoY due to Covid but China up 23%

Q4 & F Y 2 1 | Retail Units in 000’s

U K C H I N A

YoY(7)%

N . A M E R I C A O V E R S E A SE U R O P E T O T A L

YoY(5)%

YoY+12%

28.5 31.4

Q4 FY20 Q4 FY21

12.2

27.6

Q4 FY20 Q4 FY21

YoY+127%

17.6 15.8

Q4 FY20 Q4 FY21

YoY(10)%

YoY+10%

106.6

83.0

FY20 FY21

129.3110.8

FY20 FY21

107.0

79.3

FY20 FY21

90.1111.2

FY20 FY21

75.5

55.3

FY20 FY21

508.7439.6

FY20 FY21

YoY(22)%

YoY(14)%

YoY(26)%

YoY+23% YoY

(27)%

YoY(14)%

Q4

FY


Charge+ FY21 savings £2.5b – achieving full year target£6b lifetime Charge programme savings (since Sept 2018)

£0.1b

£0.3b delivered in Q4 FY21 to achieve £2.5b FY21 target £6b lifetime Charge savings

Savings in FY21

£2.5b

Working Capital

£1.0b

Lifetime Savings

£6.0b

InvestmentCost &Profits

£2.9b

£2.1b

Working Capital

£0.4b

InvestmentCost &Profits

£1.0b

£0.8b

£0.2b

Q4 FY21 savings

Q1-Q3 FY21 savings


Cash flow break-even reduced to c. 400k unitsTransformation supported by Charge and Refocus

Units 000’s | £m

425450

500550

575600

500

<400

FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

400+

Wholesales 471 509 535 545 508 565 476 348 TBD Increasing

Cash flow 749 502 637 (25) (910) (882) (759) 185 TBD Positive

Sales growth, new models &capacity expansion

FY23 & Beyond

Wholesales illustrated reflect approximate break-even levels

Wholesales required for breakeven cashflow

BUSINESS UPDATE

81 8 M a y 2 0 2 1


Compelling and desirable portfolio today – 12 of 13 nameplates electrifiedExciting new products to be announced in the next 9-12 months

Range Rover Sport

Defender 110

Discovery Sport

XE & XELF-PACE Range Rover Velar

Defender Hard TopE-PACE

Range Rover Defender 90

DiscoveryF-Type

XF & XFLI-PACE

Range Rover Evoque

L A N D R O V E RJ A G U A R


Reimagine strategy - Modern Luxury by DesignElectrification of the Jaguar and Land Rover brands

The electrification of the Jaguar and Land Rover brands is at the heart of Reimagine, set against a canvas of true sustainability.

Our accelerated path towards electrification through Reimagine will contribute to becoming a net carbon zero carbon business by 2039

– Reimagination of Jaguar as an all-electric luxury brand from 2025

– First all-electric Land Rover model in 2024

– All Jaguar and Land Rover nameplates to be available in pure electric form by end of the decade

Land Rover - delivering modern luxury through its 3 families - 6 BEV variants in the next five years

Jaguar as a pure electric luxury brand; pioneering next-generation technologies


Reimagine strategy - Modern Luxury by Design3 BEV-first platforms, collaboration and capacity reduction to achieve double-digit EBIT by FY26

60%

80%

100%

FY22 FY23 FY24 FY25 FY26 FY27

Utilisation

Global 2-shift capacity

3 B E V - F I R S T P L A T F O R M S L E V E R A G E C O L L A B O R A T I O N S R E D U C E C A P A C I T Y B Y 2 5 %

2 0 2 1 / 2 2 L R : M L A F L E X

2 0 2 5J A G U A R : P U R E B E V

2 0 2 4 L R : E M A N A T I V E B E V


T R A N S F O R M A T I O N O F F I C E

Q U A L I T Y P R O G R A M M E D E L I V E R Y

& P E R F O R M A N C E

D E L I V E R E D C O S T P E R C A R

E N D - T O - E N D S U P P L Y C H A I N

C U S T O M E R & M A R K E T

P E R F O R M A N C E

C H I N A

1 2 3 4 65

Reduced warranty spend

Efficient programme delivery

Reduction in vehicle cost

Faster vehicle delivery times

Increased profitable market share

Increased profitable market share

A G I L E O R G A N I S A T I O N & C U L T U R E

Agile Organisation, Leadership, Capability, Culture

7

I N D I G I T A L

Using data and technology to power the transformation

8

R E S P O N S I B L E S P E N D

Sustaining the cost improvements

9

Drives transformation activities across the organisation to deliver value, efficiencies and profitability

Refocus will deliver:

• Up to £1b of value in FY22

• Improved customer satisfaction scores

• Focus on sustainability

Reimagine strategy - Modern Luxury by DesignRefocus transformation to drive the transformation of the business


8.3

23.7

Q1FY21

Q1FY22

20.8

31.4

Q1FY21

Q1FY22

11.5

25.8

Q1FY21

Q1FY22

23.7 27.0

Q1FY21

Q1FY22

9.7

16.6

Q1FY21

Q1FY22

74.1

124.5

Q1FY21

Q1FY22

10.7

23.7

Q1FY21

Q1FY22

9.1

15.0

Q1FY21

Q1FY22

11.0

18.2

Q1FY21

Q1FY22

8.6

12.7

Q1FY21

Q1FY22

9.5

14.9

Q1FY21

Q1FY22

48.9

84.4

Q1FY21

Q1FY22

13

Q1 Retail sales 124.5k, up 68% YoY with UK & Europe up >100%Wholesales up 73%, but 30k units lower than potential demand due to chip supply constraints

Q1 F Y 2 2 | Retai l Units in 000’s

U K C H I N AN . A M E R I C A O V E R S E A SE U R O P E T O T A L

YoY+65%

YoY+122%

YoY+65%

YoY+48%

YoY+56%

YoY+73%

WH

OL

ES

AL

ES

RE

TA

IL

S

YoY+187%

YoY+124%

YoY+51%

YoY+68%YoY

+14%YoY

+71%


Estimated cash £3.7b and £1.9b undrawn RCF at 30 June - £5.6b liquidityQ1 FY22 estimated free cash outflow of c. £1b (unaudited)

IFRS | £m

3,700Proforma

Total Cash

400763 981

509 853363 472

4,342

204 270

679

104

581

1,838

519

1,935 undrawn RCF

625undrawn RCF

1,310undrawn RCF

TotalLiquidity

CY21 CY22 CY23² CY24 CY25 CY26 CY27 CY28 TotalDebt

Cash and financial deposits Bonds Bank loans Leases (IFRS16)

D E B T M A T U R I T Y P R O F I L ETotal

liquidity c. 5,600

Total debt 6,697

NOTES: • Total Liquidity includes £3m undrawn portion of Fleet Buyback facility• £679m bank loan maturities in CY23 includes RMB 5b 3-year syndicated revolving loan facility, subject to annual confirmatory review• Total debt includes £(2)m comprising £32m of other debt, offset by £34m of capitalised fees and fair value adjustment

Accessions signed to increase RCF by 80m to 2.015b through to July 2022

and 1.43b through to March 2024


I m p a c t

– Production has been impacted by chip shortages, resulting from structural supply constraints including the impact of Covid and exacerbated by some specific factors affecting our Tier 2 suppliers

– Demand remains strong and Q1 retails were up 68% year-on-year and the sold order bank is at a record 110k units

– Whilst Q1 wholesales were up 73% this is 27% lower than we had initially planned due to supply constraints

– Latest expectation for Q2 is that chip supply will reduce further and wholesales may be down 50% from planned levels

– Situation expected to improve in H2 however some underlying structural capacity issues will only be resolved as supplier investment in new capacity comes on line over next 12 to 18 months

15

Chip supply status and outlookSituation is dynamic and difficult to forecast; but expected to improve in H2

A c t i o n

– Mission control centre established with risk surveillance and real time demand/supply simulation supported by applied analytics and robotic process

– Daily contact with tier 1 suppliers, tier 2 chip manufacturers and chip brokers to maximise supply in the short term

– Prioritisation of higher margin models

– Optimisation of chip and product specification to reduce dependence on chips in short supply

– Management of vehicle pre-build to support retrofit to quickly meet demand as soon as chip supply becomes available

– Increased visibility and control over future chip supply, including for example long term contracts to ensure security of supply

➢ In scenario above, free cash outflow of c. £1b with negative EBIT margin in each of Q1 and Q2➢ Expect substantial improvement in underlying operating cash flow in second half of the financial year as chip supply improves(before exceptional

cash restructuring charges announced as part of the Reimagine strategy in Q4)


M on t h s s ol d or d e r c ov e r

5

4 4

10.5

16

Global order bank at 110,000 units – largest in JLR historyStrong demand for when chip supply improves

U n i t s

U K C H I N AN . A M E R I C AO V E R S E A SE U R O P E T O T A L

7,953 4,827 11,214

4,367 698

41,153

27,161

26,214

10,677

4,560 29,059

109,765

3

Majority of sales direct from dealer stock in US and China


Reimagine medium and long-term targets remain unchanged

K E Y P R I O R I T I E SF I N A N C I A L T A R G E T S

- Proactively manage current supply chain risks

- Execute Reimagine strategy

- Execute Refocus transformation programme and continue to drive cost efficiency

- Continue to drive quality over quantity of sales

F Y 2 4

R E V E N U E

E B I T M A R G I N

I N V E S T M E N T

F R E E C A S H F L O W

I N C R E A S I N G

≥ 7 %

c . £ 2 . 5 b

P O S I T I V E

F Y 2 6

> £ 3 0 b

≥ 1 0 %

c . £ 3 b

P O S I T I V E

T H A N K Y O U


1818

ADRIAN MARDELL

Chief Financial Officer

Jaguar Land Rover

JAGUAR LAND ROVER INVESTOR RELATIONS

[email protected]

JAGUAR LAND ROVER

Abbey Road, Whitley, CoventryCV3 4LF, UK

jaguarlandrover.com

BENNETT BIRGBAUER

Treasurer

Jaguar Land Rover

mailto:[email protected]

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JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL