ANNUAL REPORT 2013-14 02 Overview | Brands | Manufacturing | Technology | Responsible business | Management report | Governance | Financials Cash* (£ million) Debt (£ million) Net cash (debt) (£ million) Financial highlights 2014 3,459 2014 2,010 2014 1,449 Great new products delivered by world-class designers 2013 2,847 2013 2,167 2013 680 and engineers using cutting-edge technology and 2012 2,430 2012 1,974 2012 456 2011 1,028 2011 1,382 2011 (354) innovation, resulting in record sales in FY14. *Includes short-term deposits Free cash flow* (£ million) EBITDA (£ million) Profit after tax (£ million) 2014 1,150 2014 3,393 2014 1,879 2013 595 2013 2,339* 2013 1,214* 2012 958 2012 2,095* 2012 1,460* 2011 876 2011 1,502 2011 1,036 n o lli *Restated for adoption of IAS 19 (revised). i *Free cash flow measured as net change in cash *Restated – see page 82 m 4 See note 2 of the consolidated financial statements 8 and cash equivalents, less net cash in financing 7 £13,512 , mi llio 5 n 1 activities and investments in short-term deposits £ £ 9 , 8 7 1 Profit before tax n m o i l i l l i l i o m n 6 8 3 , Revenue 2014 9 1 £ £19,386 million 2014 £2,501 million 2011 2013 2012 2013 £1,674 million* 2014 2012 £1,479 million* Retail volumes (units ’000) Average number of employees Product and other investment (£ million) 2014 434 2014 27,953 2014 2,680 2011 2013 375 2013 24,913 2013 2,048 2012 306 2012 20,887 2012 1,560 £1,115 million 241 17,255 900 2011 2011 2011 *Restated for adoption of IAS 19 (revised). See note 2 of the consolidated financial statements JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 04 OverviewOverview | BrandsBrands || ManufacturingManufacturing || TechnologyTechnology || ResponsibleResponsible businessbusiness || ManagementManagement reportreport || GovernanceGovernance || FinancialsFinancials Jaguars and Land Rovers line up at Horse Guards Parade as part of the Heritage Drive JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 06 Overview | Brands | Manufacturing | Technology | Responsible business | Management report | Governance | Financials Contents 02 OVERVIEW 02 Financial highlights 06 Contents 08 Chairman’s statement 10 CEO’s statement 12 Key milestones 14 Key awards 16 OUR BRANDS AND CARS 18 F-TYPE Coupé makes its debut 20 Jaguar announces all-new aluminium architecture and C-X17 concept 22 Range Rover Sport launched in New York 26 Our vehicles 28 Jaguar Land Rover celebrates The Queen’s Coronation 30 Jaguar Land Rover supports sporting achievement 32 MANUFACTURING 34 Jaguar Land Rover committed to the UK 38 Global manufacturing footprint 40 TECHNOLOGY AND INNOVATION 42 Pushing the technology envelope 48 RESPONSIBLE BUSINESS 50 The UK’s Responsible Business of the Year 56 Social responsibility initiatives integral to our reputation 64 A growing, thriving, business 68 Caring for a diverse workforce 70 MANAGEMENT REPORT 72 CFO’s statement 74 Strategic report 90 Directors’ report 92 GOVERNANCE 94 Board of Directors 96 Executive Commitee members 98 Corporate governance 101 Independent auditor’s report 102 FINANCIAL STATEMENTS 104 Consolidated financial statements 108 Notes to the consolidated financial statements 156 Parent Company financial statements JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 08 Overview | Brands | Manufacturing | Technology | Responsible business | Management report | Governance | Financials Chairman’s statement he Tata Group’s core purpose is to improve the quality of life of the communities it serves globally, T through long-term stakeholder value creation. We seek to differentiate ourselves through customer-centricity, innovation, entrepreneurship, trustworthiness and values-driven business operations, while balancing the interests of diverse stakeholders including shareholders, employees and civil society. These are values shared by Jaguar Land Rover, a flagship asset for the Tata Group. The Company continues to go from strength to strength demonstrating the pioneering and entrepreneurial spirit synonymous with our group of companies. In the pursuit of excellence Jaguar Land Rover has continued to innovate through its products, technology and people. This commitment has seen the Company continue to harness the growing global demand for vehicles in the premium car segment through the delivery of award-winning models. As we move to the next fiscal year, we must continue to harness the collective strength of our Group and recognise the invaluable contribution made by our employees as we look to celebrate even greater success in the future. Cyrus Mistry Chairman Jaguar Land Rover Automotive plc 28 July 2014 JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 10 Overview | Brands | Manufacturing | Technology | Responsible business | Management report | Governance | Financials CEO’s statement aguar Land Rover delivered a solid Acting responsible performance by focusing on what At Jaguar Land Rover we recognise that our matters most – creating great British commitment does not stop at delivering on the J products by world-class designers commercial imperatives. Our dedication to the and engineers. environment and the communities in which we operate is central to our business strategy. It led us Solid financial accomplishments to be named Responsible Business of the Year by We sold more than 430,000 vehicles, up 16% Business in the Community – a moment that stands year-on-year, with growth across all regions and out as a highlight of the year. new records set in 38 markets. As a result, revenue increased by 23% to Outlook £19.4 billion and EBITDA by 45% to £3.4 billion, Jaguar Land Rover is well positioned for future representing an EBITDA margin of 17.5%. Pre-tax sustainable and profitable growth, both iconic profits rose 49% to £2.5 billion. brands can grow and prosper. Our strategic plans have the firm commitment Innovative products of our nurturing parent Tata Motors, encouraging Our award-winning product portfolio underpins Jaguar Land Rover in an entrepreneurial spirit. the success of the Company. The Range Rover Every area of our business is focused on Sport, Jaguar F-TYPE Coupé and our flagship, the “customer first”; passionate and motivated to long wheelbase Range Rover, are transforming inspire our customers with exceptional premium our business. We also showcased the world’s first products, delivering the highest standards of quality, diesel hybrid SUV in Range Rover. technology and customer service. In responding to our global customers’ desires This is an exciting time for Jaguar and Land and needs we introduced several new innovative Rover. With a generally positive macroeconomic technologies, such as stop-start transmissions environment around the world, I am optimistic about across the entire range, All-Wheel Drive XF and the possibilities for the future. XJ Jaguar models and an active drive line and We have a pioneering spirit that drives nine-speed gearbox in the Range Rover Evoque. continuous improvement and creates significant We are pioneers in aluminium construction and opportunities to attract new customers. lightweight materials and continuously improve Overall, we are committed to delivering our aerodynamics, rolling resistance, crash safety and customers experiences they will love for life. connectivity technologies. Investments in product, production and people Furthermore, we laid the foundations to expand our innovative product portfolio and announced an all-new technically advanced aluminium intensive Dr Ralf Speth vehicle architecture. Chief Executive Officer The majority of the operational investments were Jaguar Land Rover Automotive plc directed to Solihull in preparation of the first Jaguar 28 July 2014 model to be produced there. During 2013, we recruited 3,000 new employees, many at the forefront of product creation and delivery and more than 400 on our graduate and apprentice programmes. JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 JAGUAR LAND ROVER AUTOMOTIVE PLC ANNUAL REPORT 2013-14 12 Overview | Brands | Manufacturing | Technology | Responsible business | Management report | Governance | Financials Key milestones From launching critically acclaimed new cars to supporting programmes with global impact, it was an action-packed year for the Company. NOV19 NOVEMBER 2013 F-TYPE COUPÉ LAUNCH The all-new Jaguar F-TYPE Coupé range, led by the high- performance F-TYPE R Coupé model, made its global debut at an exclusive VIP media and consumer event on the eve of 11JUL JULY 2013 the Los Angeles Auto Show. CORONATION FESTIVAL As the only automotive FEB17 FEBRUARY 2014 manufacturer to hold LAND ROVER CELEBRATE APR30 APRIL 2013 Royal Warrants from all three 25 YEARS OF DISCOVERY grantors, Jaguar Land Rover LAND ROVER was delighted to support the Land Rover unveiled a new CELEBRATES 65 YEARS Coronation Festival. The Discovery XXV Special Land Rover marked its 65th unique event which celebrated Edition as a celebration of the anniversary with a celebration the 60th anniversary of the SEP10 SEPTEMBER 2013 25th anniversary year of the of technology and innovation. coronation of Her Majesty The original launch of its versatile Around 150 heritage Land ALL NEW ALUMINIUM family SUV. First launched Queen showcased the best of ARCHITECTURE Rovers attended a celebratory British innovation excellence SHOWCASED BY C-X17 in Plymouth, UK in 1989, the event at Packington Estate, and industry. CONCEPT CAR Discovery revolutionised the the testing ground for the 4x4 landscape. Its combination Jaguar Land Rover announced original 1947-48 Land Rover of contemporary design, an investment approaching prototypes and Range Rover spacious and user-friendly £1.5 billion to introduce an development vehicles of the interiors, unflinching capability 3JUL JULY 2013 all-new technically advanced DEC5 DECEMBER 2013 1960s and 70s. These vehicles and extreme versatility made it aluminium vehicle architecture, showcase key milestones in RESPONSIBLE BRAZIL an instant hit.