JLR CEO’s Message
Towards long-term sustainable growth

Dear Shareholders,

This year, Jaguar Land Rover re-imagined the Land Rover Defender and celebrated winning a historic treble at the 2019 World Car of the Year awards with the Jaguar I-PACE. We are proud to be the UK’s largest automotive manufacturer, respected across the world for our outstanding award-winning products and innovative customer-focused technologies.

2020 will be remembered for the COVID-19 pandemic, which has devastated lives and disrupted livelihoods. It is our people who make us what we are and I would like to thank everyone at Jaguar Land Rover and the Tata Motors Group for their outstanding support.

Our performance

Total revenues in FY20 were £23 billion, with 475,952 wholesale units (excluding wholesale from our China JV), an EBIT margin of -0.1% and a loss before tax of £422 million.

Notwithstanding the impact of regulatory changes, shifting consumer tastes, Brexit and ongoing trade tensions, during the second and third quarters, sales for Jaguar and Land Rover were on a strong and profitable trajectory, underpinned by the £2.9 billion of cost and cashflow improvements achieved through our major transformation programme, Project Charge. Our decisive turnaround measures in China resulted in six months of continued double-digit Y-o-Y growth.

The unprecedented disruptions caused by the COVID-19 pandemic inevitably impacted sales and profitability in the fourth quarter. Despite the many headwinds, retail sales of our all-electric Jaguar I-PACE and our all-new Range Rover Evoque increased Y-o-Y by 40.0% and 24.7%, respectively. In addition, we sold more of our halo Special Vehicle products than ever before, with over 9,500 vehicles retailed in FY20, up 64% Y-o-Y.

We have reacted quickly and decisively to the pandemic, with an accelerated focus on improving cashflow and strengthening liquidity to pave the way for long-term EBIT margin improvement. Charge+, the next phase of our transformation programme, is already ahead of schedule, having achieved £600 million of savings to date against a new target of over £2 billion of cost improvements by March 2021.

Our products and innovation

We innovate relentlessly to create exciting and inherently diverse products with a compelling combination of British design and engineering integrity.

This year, our Jaguar XE was updated with an enhanced exterior and all-new luxurious interior, focused on new technologies. Our iconic sports car, the Jaguar F-TYPE, has also been refreshed.

Our leaps forward in electrification were evidenced by significant success for the Panasonic Jaguar Racing team in the Formula E championship this year. In November 2019, the ground-breaking Jaguar I-PACE added the coveted Golden Steering Wheel to its vast collection of prestigious awards.

In September 2019, we launched our new Land Rover Defender to critical acclaim. It brings the latest advances in technology and connectivity, plus mild-hybrid and, soon, plug-in hybrid drivetrains. We have also expanded our electrified Land Rover line-up with our latest 1.5 litre, three-cylinder plug-in hybrid system, now available for Range Rover Evoque and Land Rover Discovery Sport.

Investing in mobility

Through collaboration and continuous investment into R&D, we are leading the transition to connected, seamless and integrated mobility. Unveiled in February 2020, Project Vector is a physical representation of our Destination Zero ambition – an advanced, connected, autonomy-ready electric vehicle concept for both public and private mobility.

Our purpose

We are now preparing for a post-virus future in which private vehicles could play a far greater role than previously imagined. We have charted a path towards long-term sustainable growth, with a lean cost base, disciplined capital allocation, a highly skilled workforce and world-class R&D.

Throughout all of this, our purpose will remain constant; to create experiences people love for life.

Best regards,
Dr Ralf Speth
Coventry, UK, June 15, 2020