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CONTEXT
The Company’s operations are
subject to risks arising from
fluctuations in exchange rates
with reference to countries
in which it operates. The
Company imports capital
equipment, raw materials
and components from,
manufacture vehicles in, and
sell vehicles into, various
countries, and therefore, its
revenues and costs have
significant exposure to
the relative movements of
currencies of those countries.
Also, the Company has an
outstanding foreign currency
denominated debt and is
sensitive to fluctuations in
foreign currency exchange
rates.
The Company (including
JLR) is subjected to risks
and costs associated with
product liability, warranties
and recalls in connection with
performance, compliance or
safety-related issues affecting
the Company’s products
which may, in turn, cause
the Company’s customers
to question the safety or
reliability of its vehicles and
thus result in a materially
adverse effect on its business.
International expansion
exposes the Company and
its subsidiaries to increased
diversity and complexity of
legal and other frameworks
in a variety of jurisdictions.
Therefore, the Company
and its subsidiaries become
subject to maintaining legal
and ethical standards globally.
CAPITALS
IMPACTED
MITIGA-
TION
Currency transaction risk
is managed with financial
derivatives in line with the
hedging policy approved
by the Company’s and its
respective subsidiaries’ Board.
Also, JLR aims to align
its sourcing base with its
global sales profile and the
revaluation of some of its
US Dollar debt provides a
natural offset to its US Dollar
receivables.
Further, the Company hedges
its foreign currency debt as
per its hedging policy.
The Company (including
JLR) regularly monitor the
service data of its vehicles to
proactively manage recalls and
minimise warranty claims.
Jaguar Land Rover also issues
technical updates to its dealer
network to manage identified
faults and defects.
The Company’s code
of conduct sets out the
behaviours that the Company
expects of its staff, including
conforming to the highest
moral and ethical standards
and complying with
applicable laws, including
anti-bribery, corruption and
competition laws, sanctions
and export controls.
Exchange
Rate
Volatility
Product Liability,
Warranties
and Recalls
Unethical and
Prohibited
Business Practices
CORPORATE OVERVIEW
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