JAGUAR LAND ROVER AUTOMOTIVE PLC Jaguarannual LAND ROVER Report AUTOMOTIVE 2019/20 PLC Annual Report 2019/20 CONTENTS FISCAL YEAR 2019/20 at a GLANCE

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JAGUAR LAND ROVER AUTOMOTIVE PLC Jaguarannual LAND ROVER Report AUTOMOTIVE 2019/20 PLC Annual Report 2019/20 CONTENTS FISCAL YEAR 2019/20 at a GLANCE JAGUAR LAND ROVER AUTOMOTIVE PLC JAGUARAnnual LAND ROVER Report AUTOMOTIVE 2019/20 PLC Annual Report 2019/20 CONTENTS FISCAL YEAR 2019/20 AT A GLANCE STRATEGIC REPORT FINANCIAL STATEMENTS We are a global automotive manufacturer and leading Our mission is Destination Zero; a world of zero emissions, technology company, proudly built around two iconic British zero accidents and zero congestion, shaping an autonomous, 4 Fiscal year 2019/20 at a glance 39 Independent auditor’s report car brands: Jaguar and Land Rover. We are driven by a desire connected, electrified and shared future. to deliver class-leading vehicles, providing experiences people Consolidated income statement 5 Chairman’s statement 49 love, for life. 7 CEO’s statement 49 Consolidated statement of comprehensive income and expense 9 Challenges and opportunities 50 Consolidated balance sheet 11 Business model and our blueprint for success 51 Consolidated statement of changes in equity 13 Global retail sales RETAIL SALES INCLUDING WHOLESALES EXCLUDING 52 Consolidated cash flow statement OUR CHINA JOINT VENTURE OUR CHINA JOINT VENTURE 15 CFO’s statement 53 Notes (forming part of the consolidated 16 Financial performance financial statements) 508,659 UNITS 475,952 UNITS 19 Our principal risks 125 Parent company financial statements FISCAL 2019/20: 508,659 FISCAL 2019/20: 475,952 23 Streamlined energy reporting FISCAL 2018/19: 578,915 FISCAL 2018/19: 507,895 25 Introduction to governance FISCAL 2017/18: 614,309 FISCAL 2017/18: 545,298 27 Leadership 31 Effectiveness 32 Accountability REVENUE PROFIT/(LOSS) BEFORE TAX 35 Jaguar Land Rover’s approach to tax AFTER EXCEPTIONAL CHARGES* £23.0 BN £(0.4) BN DIRECTORS’ REPORT FISCAL 2019/20: £23.0bn FISCAL 2019/20: £(0.4)bn FISCAL 2018/19: £24.2bn FISCAL 2018/19: £(3.6)bn 37 Directors’ report FISCAL 2017/18: £25.8bn FISCAL 2017/18: £1.5bn OPERATING CASH FLOW TOTAL INVESTMENT BEFORE INVESTMENT SPENDING* £2.6 BN £3.3 BN FISCAL 2019/20: £2.6bn FISCAL 2019/20: £3.3bn FISCAL 2018/19: £2.5bn FISCAL 2018/19: £3.8bn FISCAL 2017/18: £3.1bn FISCAL 2017/18: £4.2bn * Please see note 3 of the financial statements on page 70 for alternative performance measures 3 JAGUAR LAND ROVER AUTOMOTIVE PLC Annual Report 2019/20 CHAIRMAN’SBUSINESS MODEL STATEMENT In the past year, the global automotive industry has witnessed sought efficiencies in every part of our operations stretching In the year ahead, we must seize every opportunity that arises from the upheavals of 2019-20. The company’s unique the greatest set of challenges in its history. Faced with the from supply chains to manufacturing plants, and from R&D in these areas while addressing the ongoing industry challenges capabilities – especially in high-performance and go-anywhere COVID-19 crisis and market headwinds that were mounting centres to retailer networks. that confront us. These challenges include preparing for Britain’s luxury vehicles – are recognised already by customers around the even before the pandemic, Jaguar Land Rover has responded withdrawal from the European single market at the end of the world. Those capabilities will drive future demand. At the same responsibly and effectively to this unprecedented disruption. The new fiscal year will be marked by further uncertainty, Brexit transition period, albeit with little clarity yet on the shape time, Tata Group recognises and values Jaguar Land Rover’s reflecting the varying pace of economic recovery in different of future trading arrangements. future potential highly. I would like to thank everyone at Jaguar Land Rover, as well regions. This will require a continued focus on financial as our many partners and stakeholders, for their commitment, discipline and further efficiencies, building on the considerable This year, our Chief Executive Officer Prof Sir Ralf Speth will retire That is why this company is central to our global automotive hard work and support for the business. Together, we will success of Jaguar Land Rover’s Charge+ and Accelerate after 10 years of dedicated service. I would like to personally presence – a presence that we intend to develop for years to safeguard the future of these iconic brands, Jaguar and Land programmes. thank him for his vision, unfaltering passion and commitment come. Rover. in leading Jaguar Land Rover, delivering new technologies and I am confident that these measures will enable the return to outstanding products and services. From the Tata Group, in return, our commitment remains to long-term sustainable and profitable growth. prioritise the well-being, the safety and health of everyone in I know that Jaguar Land Rover has a dedicated management both our global network and in subsidiary operations such as I am equally confident that Jaguar Land Rover will play team and a highly skilled and committed workforce which will Jaguar Land Rover. This shared enterprise and cooperation, a central part in the automotive industry’s shift to an enable it to continue to navigate the many challenges of today to aligned to our support for every community in which we increasingly autonomous, connected, electrified and shared achieve a bright future. Jaguar Land Rover remains a key pillar of operate, is a hallmark of the stakeholder capitalism that (ACES) mobility world. At the same time, we will prioritise the wider Tata Group. NATARAJAN CHANDRASEKARAN differentiates the Tata Group. simplification, synergies and scale within the Tata Motors Chairman family, including working with partners when it makes sense With Tata Group’s active and constant support, Jaguar Land Jaguar Land Rover Automotive plc At Jaguar Land Rover and at Tata Motors, we have seen the to do so. Rover has the resilience and capabilities to emerge successfully 2 July 2020 importance of this shared enterprise over the past year as we 5 JAGUAR LAND ROVER AUTOMOTIVE PLC Annual Report 2019/20 CHIEFBUSINESS EXECUTIVE MODEL OFFICER’S STATEMENT This year, Jaguar Land Rover reimagined the Land Rover programme, is already ahead of schedule, having achieved Evoque and comprehensively updated Land Rover Defender and celebrated winning an historic treble at the a pro-forma £600 million3 of savings in Q4 Fiscal 2019/20 Discovery Sport. 2019 World Car of the Year awards with the Jaguar I-PACE. against a new target of over £2 billion of cost improvements We are proud to be the UK’s largest automotive manufacturer, by March 2021. Investing in Mobility respected across the world for our outstanding, award-winning products and innovative, customer-focused technologies. Our Products and Innovation Through collaboration and continuous investment into R&D, we are leading the transition to It is our people that make us what we are. I would like to thank We innovate relentlessly, to create exciting and inherently connected, seamless, integrated mobility. This year everyone at Jaguar Land Rover and Tata for their outstanding diverse products with a compelling combination of British we celebrated the official opening of two world- support. design and engineering integrity. Our portfolio is attracting a class facilities, our Advanced Product Creation broad range of customers. Centre in Gaydon and the National Automotive 2020 will be remembered for the COVID-19 pandemic, Innovation Centre in Warwick, one of Europe’s which has devastated lives, caused a global healthcare crisis This year, Jaguar refreshed its sport saloon XE, with an largest automotive R&D hubs. Both embody the and disrupted businesses worldwide. Even before the virus enhanced exterior, an all-new luxurious interior and the spirit of collaboration and creativity to tackle outbreak, the 2020s promised to be a decade of change for introduction of new, intuitive technology: wireless device society’s greatest mobility challenges. the entire automotive sector. As a company, we will learn charging, embedded Apple Car Play and Spotify app and the from these challenges and find even better ways to achieve first-in-segment ClearSight interior rear view mirror, feeding We are already leading the way with Project Vector, our Destination Zero mission of zero emissions, zero accidents images of the road behind to a high-definition screen. a physical representation of our Destination Zero and zero congestion. ambition to make our societies safer and healthier Our iconic sports car, the Jaguar F-TYPE, has also been and our environment cleaner. Unveiled in February Our Performance refreshed, receiving overwhelmingly positive customer and 2020, Vector is an advanced, autonomy-ready media feedback. electric vehicle concept designed to meet the Total revenues in Fiscal 2019/20 were £23.0 billion, with needs of both public and private mobility systems. 475,952 wholesale units (excluding wholesales from our Our leaps forward in electrification were evidenced by China joint venture), an EBIT margin of -0.1%1 and a loss significant success for the Panasonic Jaguar Racing team in Our Purpose before tax of £422 million1. the Formula E championship this year, securing two victories and two podiums in a highly competitive field of renowned At this challenging time, our actions define who Notwithstanding the impact of regulatory changes, shifting manufacturers. We have taken our learnings from race to road. we are today, and will be tomorrow. I am incredibly consumer tastes, Brexit and ongoing trade tensions, during In November 2019, the groundbreaking Jaguar I-PACE added proud of the way our employees have mobilised to the second and third quarters, sales for Jaguar and Land Rover the coveted Golden Steering Wheel to its vast collection of support our communities and emergency services, were on a strong and profitable trajectory, underpinned by the prestigious awards. working beyond normal day-to-day boundaries. pro-forma £2.9 billion2 of cost and cashflow improvements Our thoughts are with those directly affected by achieved through our major transformation programme, For Land Rover, we go Above and Beyond when it comes to COVID-19 and the frontline staff fighting the virus Project Charge by 31 December 2019.
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