TTM Tata Motors Ltd

INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JAGUAR LAND ROVER AUTOMOTIVE PLC    1. OUR OPINION IS UNMODIFIED    We have audited the financial statements of Jaguar Land Rover Automotive plc (“the Company”) for the year ended 31 March OVERVIEW 2022 which comprise the Consolidated Income Statement, Materiality: Ł80m (2021: Ł80m) Consolidated Statement of Comprehensive Income and Group financial Expense, Consolidated Balance Sheet, Consolidated Statement statements as a 0.4% of Group Revenue of Changes in Equity, Consolidated Cash Flow Statement, the whole (2021: 0.4% of Group Revenue) parent Company Balance Sheet, the parent Company Statement    of Changes in Equity, the parent Company Cash Flow Statement, Coverage 80% and the related notes, including the parent Company and Group (2021:82%) of Group revenue accounting policies. Key audit matters vs 2021 Recurring risks Impairment of In our opinion: property plant and • the financial statements give a true and fair view of the state equipment, intangible, and right-of use non-of the Group’s and of the parent Company’s affairs as at 31 current assets March 2022 and of the Group’s loss for the year then ended; Going concern Capitalisation of • the Group financial statements have been properly prepared product engineering in accordance with the requirements of UK-adopted costs international accounting standards; Valuation of defined benefit plan • the parent Company financial statements have been properly obligations prepared in accordance with UK-adopted international accounting standards and as applied in accordance with the Parent Company Recoverability of key audit matter parent Company provisions of the Companies Act 2006; and investment in subsidiaries and • the financial statements have been prepared in accordance intra- group debtors with the requirements of the Companies Act 2006. 2. KEY AUDIT MATTERS: INCLUDING OUR ASSESSMENT OF Basis for opinion RISKS OF MATERIAL MISSTATEMENT    We conducted our audit in accordance with International Key audit matters are those matters that, in our professional Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. judgement, were of most significance in the audit of the financial Our responsibilities are described below. We have fulfilled our statements and include the most significant assessed risks of ethical responsibilities under, and are independent of the Group material misstatement (whether or not due to fraud) identified in accordance with, UK ethical requirements including the FRC by us, including those which had the greatest effect on: the Ethical Standard as applied to listed entities. We believe that the overall audit strategy; the allocation of resources in the audit; and audit evidence we have obtained is a sufficient and appropriate directing the efforts of the engagement team. These matters basis for our opinion. were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In arriving at our audit opinion above, the key audit matters, in decreasing order of audit significance, were as follows:

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The risk Our response Impairment of Forecast-based assessment We performed the tests below rather than seeking property plant to nature rely on any balance of the Group’s is controls because the and equipment, The Group holds a significant amount obtain audit of the evidence    primarily such that through we would the detailed expect to    intangible, and of property, plant and equipment, right-of-use intangible assets and right-of-use procedures described. Our procedures included: non-current assets on its balance sheet and the Evaluated historical assets cash generating unit of which these • forecasting Historical accuracy: accuracy of discounted    cash assets form a part is at risk of being Risk vs 2021 impaired. comparing flow forecasts, them including to the actual key assumptions, results. by (Carrying value In particular, there are execution risks of plant property and equip —associated with the Group’s transition • Historical appropriateness comparison: of the Group’s Assessed key the assumptions    to Battery Electric Vehicles (‘BEV’) and ment, right intangible, -of-use resulting from its previously announced used comparing in the those, discounted where cash appropriate, flow forecasts to historical by ‘Reimagine’ strategy. In addition, non assets -current there are other headwinds facing the terminal trends in value terminal capital value expenditure variable profit . and Group and the industry, including the Ł11,687 million; continuation of semi-conductor and million) 2021: Ł12,391 other supply constraints, production • appropriateness Our industry expertise: of the Group’s    Assessed estimated the value constraints, cost inflationary pressures, Refer to note 19. COVID-related lockdowns and the in multiples use amount to market by comparing multiples the of comparative implied trading    conflict in Ukraine.    companies specialists. with the assistance of our valuation                The effect of these matters is that, as part of our risk assessment, we determined that the calculation of Assessed appropriateness and critically of the challenged Group’s assumptions the used the value in use of property, plant and equipment, intangible assets, and assumption in the cash flow of sales projections volumes by to comparing externally a derived key right-of-use assets has a high degree of estimation uncertainty, with a potential data. range of reasonable outcomes greater than our materiality for the financial Compared term growth the rate Group’s to external discount benchmark rate and long data- and statements as a whole, and possibly many times that amount. The financial comparative discount rate companies calculation and using re—the performed capital asset the statements note 19 disclose the sensitivities estimated by the Group. pricing specialists model . with the assistance of our valuation • Sensitivity analysis on key analysis: assumptions, Performed to independently a sensitivity estimate of the Group’s a range Reimagine for comparison, strategy taking and risks account facing    the industry. • reconciliation Comparing valuations: between the Assessed estimated the Group’s market overall capitalisation market of capitalisation the Group, by of reference the Tata Motors to the recoverable Limited Group amount and compared of the cash to generating the estimated unit . • Impairment Group’s estimated reversal: value Assessed in use was whether indicative the of an impairment reversal. • of Assessing the Group’s transparency: disclosures Assessed in the financial the adequacy    reflects statements the reasonably and ensured possible that the changes disclosure in the key recoverable assumptions amount that erode compared the headroom to the cash in generating unit carrying value to nil. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 59

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INDEPENDENT AUDITOR’S REPORT The risk Our response Going Concern Disclosure quality: We considered whether these risks could in the plausibly going concern affect the liquidity or covenant compliance Risk vs 2021    Note 2 of the financial period that, individually by assessing and the collectively, degree of could downside result assumption in a liquidity    statements explains how Refer to note 2 the Directors have formed a and or covenant projected issue, cash taking and facilities into account (a reverse the Group’s stress test) current . Our    judgement that it is appropriate to adopt the going concern basis procedures also included: of preparation for the Group and parent Company. That judgement • Assessment management’s of process management’s to produce process: forecasts, Evaluated including    is based on an evaluation of the inherent risks to the Group’s and to the determine assessment the of risks internal to the and business, external and factors the process used the parent Company’s business model and how those risks might management used to complete the reverse stress test. affect the Group and parent Company’s financial resources • Funding Company assessment: financing facilities Agreed available current Group by obtaining and parent    or ability to continue operations over the going concern period of relevant new loan facility agreements agreements in order . Inspected to determine existing covenants and assessment (a period of at least a year from the date of approval of attached. the financial statements). • Key critically dependency challenged assessment: management Evaluated on whether and the The risks most likely to adversely affect the Group and parent flows, key assumptions which the Directors underpinning have the used forecast to support cash the    Company’s available financial resources and compliance with to Directors’ assess whether going concern the Group basis can of preparation meet its financial and covenant thresholds over the going concern period were: and commitments consistent as with they the fall external due, were environment realistic, achievable and other the impact of semiconductor shortages on the Group’s supply include matters sales identified volumes, in the including audit. The the key variable assumptions profit chain and production capacity; the diminishing impacts of the optimisation inflation in variable strategy, profit together . with material cost COVID-19 pandemic and the impact of inflationary pressures    on material costs. • flow Historical forecasting comparisons: accuracy Evaluated of the Group the historical by comparing cash Whilst these risks could have well historical as assessing cash flows the to accuracy actual results of key reported, assumptions as adversely affected available financial resources and previously applied. compliance with covenant thresholds, as explained in • Benchmarking appropriateness assumptions: of the Group’s Assessed key assumptions the used note 2 the Directors carried out a reverse stress test which in to the externally cash flow derived forecasts data, by with benchmarking particular focus them on    ultimately demonstrated that an implausible downside with sales forecast sales volumes. volumes significantly lower than both the base case and actual • Sensitivity key assumptions analysis: underlying Considered the Group’s sensitivities cash over flow the experience through COVID-19 and semiconductor shortages level forecasts of available and their financial impact resources on the covenant . test and the was a liquidity required level in that order would to result breach in financing covenants. • to Our critically sector experience: challenge the We key used assumptions our industry made specialists by the The risk for our audit was Directors in their forecast cash flows. whether or not those risks were such that they amount to a • Assessing concern disclosure transparency: in note Considered 2 to the financial whether statements the going material uncertainty that may cast significant doubt about the assessment gives a full and of going accurate concern, description including of the the Directors’ identified ability to continue as a going concern. Had they been such, risks and related sensitivities. then required that to fact be would disclosed have . been

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The risk Our response Capitalisation Accounting treatment    Our procedures included: of product engineering costs There is a key judgement in • Control in relation operation: to the Directors’ Tested controls assessment including as to determining whether the nature Risk vs 2021 of the product engineering costs capitalisation whether product . engineering costs are eligible for satisfy the criteria for capitalisation ( 2021: Ł457 Ł million;—to ‘Intangible Assets: Product    judgements llion) 769 mi development in progress’ and when • Personnel made by the interviews: Directors around Corroborated the timing of this capitalisation should commence. Refer to note 19. Given the products with material engineering commencement costs of through capitalisation discussions of product with capitalised project engineering costs    during the current period, and the project level staff.                Group’s stage in development cycle more generally in the current period, • the Our Directors’ sector experience: judgements Critically regarding assessed product    the risk of satisfaction of IAS 38 capitalisation requirements is less being engineering eligible costs for capitalisation identified by against the Directors both the as associated with the future economic viability as in previous periods but accounting practical application standards of and these our standards experience in of other    primarily related to the allocation of directly attributable expenditure. companies. The financial statements (note 19) • engineering Tests of details: costs For identified a sample by of the product Directors    as disclose that had the value of central overheads not been identified by being nature eligible was consistent for capitalisation, with the agreed description that of their the    the Directors as being eligible for capitalisation it would have reduced the account timing to of which recognition those costs was appropriate were recorded, . and million the amount (2021: capitalised Ł80 million) by. Ł52 • Assessing of the Group’s transparency: disclosures Assessed in respect the of the adequacy    key of the judgements costs capitalised made relating and the to point the nature at which    capitalisation commences.    Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 61

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INDEPENDENT AUDITOR’S REPORT The risk Our response Valuation of Subjective valuation Our procedures included: defined benefit plan obligations Small changes in the key • Control assumptions Operation: applied Tested in the controls valuation over and the    assumptions and estimates, being Risk vs 2021 the discount rate, inflation rate and assumptions inspected the used Group’s by its annual actuarial validation expert of . the mortality/life expectancy, used to ( 2021: Ł7,522 Ł8,432 million;    value the Group’s pension obligation    Tested the Group’s controls operating over (before deducting scheme assets) million) would have a significant effect competence selection and and monitoring objectivity of .its actuarial expert for on the amount of the Groups’ net Refer to note 32. defined benefit plan asset. The Challenged, risk is that these assumptions • the Benchmarking support of our assumptions: own actuarial specialists, with the are inappropriate resulting in an inappropriate valuation of plan key liabilities, assumptions being the applied discount to the rate, valuation inflation of rate the    obligations. derived and mortality/ data. life expectancy against externally The effect of these matters is that, as part of our risk assessment,    Considered we determined that valuation • Assessing adequacy of transparency: the Group’s disclosures inthe respect    of of the pension obligation has a high degree of estimation the plan sensitivity asset to these of the assumptions Groups’ net defined benefit uncertainty, of reasonable with outcomes a potential greater range    than statements our materiality as a whole, for the and financial possibly financial many times statements that amount (note . The 32) disclose the Group the .    sensitivity estimated by The risk Our response Recoverability of Low risk, high value We performed the tests below rather because than seeking parent Company nature to rely on of the any balance of the group’s is such controls that    the investment in The carrying amount of the evidence primarily through we would    detailed expect to    subsidiaries and parent Company’s investment in obtain audit    included: the intra-group its subsidiary, which acts as an procedures described. Our procedures debtors intermediate holding company for Risk vs 2021 the rest of the parent Company’s • of Tests the of parent detail: Company’s Compared only the investment carrying amount    subsidiaries, represents 19% (2021: Investment in sub- 21%) of the parent Company’s with assessed the subsidiary’s 100% of the draft intra balance -group debtor sheet and    assets. The carrying amount of million; sidiaries 2021: (Ł1,655 the intra-group debtors balance balance an approximation to identify of whether its minimum its net recoverable assets, being    comprises the remaining 81% (2021: Ł1,655 million) 79%). amount, was in excess of its carrying amount. Intra tors (-Ł group 7,015 deb mi-—Their recoverability is not at a high • Assessing performed subsidiary as part of the audits: group Assessed audit over the the work    risk of significant misstatement or llion; million 2021: Ł6,038 subject to significant judgement. subsidiaries’ profits and net assets.    However, due to their materiality • amount Comparing of the valuations: investment Compared in the subsidiary the carrying to and in the context of the parent Company financial statements this the of its Group’s ultimate estimated parent, adjusted market capitalisation to exclude the    is considered to be one of the areas that had the greatest effect on our liabilities of companies of the outside parent the Company Group, and being net an assets    overall parent Company audit. investment approximation .    of the recoverable amount of the

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3. OUR APPLICATION OF MATERIALITY AND AN OVERVIEW The components within the scope of our work accounted for the OF THE SCOPE OF OUR AUDIT percentages illustrated on the following page.    Materiality for the Group financial statements as a whole was The remaining 20% (2021: 18%) of total Group revenue, 15% set at Ł80 million (2021: Ł80 million), determined with reference (2021: 10%) of the total profits and losses that made up Group to a benchmark of Group revenue of Ł18,320 million (2021: loss before tax, 15% (2021: 11%) of the total profits and losses Ł19,731 million) of which it represents 0.4% (2021: 0.4%). that made up Group loss before exceptional items and tax and 16% (2021: 11%) of total Group assets are represented by 30 We consider Group revenue to be the most appropriate (2021:29) reporting components, none of which individually benchmark, as it provides a more stable measure year on year represented more than 2% (2021: 4%) of any of total Group than Group profit or loss before tax. revenue, total profits and losses that made up Group loss before tax, total profits and losses that made up Group loss before Materiality for the parent Company financial statements as a exceptional items and tax or total Group assets. whole was set at Ł64 million (2021: Ł36 million), determined with reference to a benchmark of the parent Company total For the residual components, we performed analysis at an assets of Ł8,678 million (2021: Ł7,694 million), of which it aggregated Group level to re- examine our assessment that represents 0.7% (2021: 0.5%). there were no significant risks of material misstatement within these.    In line with our audit methodology, our procedures on individual account balances and disclosures were performed The Group team instructed component auditors as to the to a lower threshold, performance materiality, so as to reduce significant areas to be covered, including the relevant risks to an acceptable level the risk that individually immaterial detailed above and the information to be reported back. The misstatements in individual account balances add up to a Group team approved the component materialities, which material amount across the financial statements as a whole. ranged from Ł6 million to Ł71 million (2021: Ł12 million to Ł65 million), having regard to the mix of size and risk profile of the Performance materiality was set at 65% (2021: 65%) of Group across the components. materiality for the financial statements as a whole, which equates to Ł52 million (2021: Ł52 million) for the group and Ł42 The work on 5 of the 8 (2021: 5 of the 8) components was million (2021: Ł23 million) for the parent company. We applied performed by component auditors and the rest, including the this percentage in our determination of performance materiality audit of the parent Company, was performed by the Group team. based on the level of identified control deficiencies during the The Group team visited 1 (2021: 0) component location to assess prior period. the audit risk and strategy, as planned visits to the majority of component locations were prevented by movement restrictions We agreed to report to the Audit Committee any corrected or relating to the coronavirus pandemic. Video and telephone uncorrected identified misstatements exceeding Ł4 million conference meetings were also held with these component (2021: Ł4 million) in addition to other identified misstatements auditors and all others that were not physically visited. At these that warranted reporting on qualitative grounds. visits and meetings, the findings reported to the Group team were discussed in more detail, and any further work required by Of the Group’s 38 (2021: 37) reporting components, we subjected the Group team was then performed by the component auditor. 4 (2021: 4) to full scope audits for group purposes and 4 (2021:    4) to specified risk-focused audit procedures. The latter were not We were able to rely upon the Group’s internal control over individually financially significant enough to require a full scope financial reporting in several areas of our audit, where our controls audit for group purposes but did present specific individual risks testing supported this approach, which enabled us to reduce the that needed to be addressed. scope of our substantive audit work; in the other areas the scope    of the audit work performed was fully substantive. The 4 (2021: 4) components subjected to specified risk-focused audit procedures are as follows: • Revenue—3 components (2021: 3) • Material & other cost of sales—3 components (2021: 3) • Property, plant & equipment—1 component (2021: 1) • Depreciation—1 component (2021: 1) • Inventories—3 components (2021: 3) • Cash & cash equivalents—3 components (2021: 3) • Accounts receivable—3 components (2021: 3) • Accounts payable—1 component (2021: 2) Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 63

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INDEPENDENT AUDITOR’S REPORT Group Revenue Group Materiality    Ł18,320m (2020: Ł19,731m) Ł80m (2021: Ł80m)    Ł80m    Whole financial statements materiality (2021: Ł80m)    Ł52m    Whole financial statements performance materiality (2021: Ł52m)    Ł71m    Range of materiality at 8 (2021: 8) components (Ł6m-71m) (2021: Ł12m to Ł65m) Revenue Group materiality Ł4m Misstatements reported to the audit committee (2021: Ł4m)    Group Revenue Group total assets 5% 6% 6% 80% 84% 63% (2021: 82%) 77% 26% (2021: 89%) 74% 79% Total profits and losses that Total profits and losses that made up Group loss before tax made up Group loss before exceptional items and tax 17% 73% 19% 18% 85% 85% (2021: 90%) 18% (2021: 89%) 70% 67% 67% Full scope for group audit purposes 2022 Specified risk-focused audit procedures 2021 Specified risk-focused audit procedures 2022 Residual components Full scope for group audit purposes 2021    

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4. GOING CONCERN performance targets for management and Directors. The Directors have prepared the financial statements on • Using analytical procedures to identify any unusual or the going concern basis as they do not intend to liquidate unexpected relationships. the Group or the Company or to cease their operations, and as they have concluded that the Group and the Company’s • Our forensic specialists assisted us in identifying key fraud financial position means that this is realistic. They have also risks. This included attending a risk assessment meeting concluded that there are no material uncertainties that could with the engagement team. have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval We communicated identified fraud risks throughout the audit of the financial statements (“the going concern period”). team and remained alert to any indications of fraud throughout the audit. An explanation of how we evaluated management’s assessment of going concern is set out in the related key audit matter in This included communication from the Group audit team to section 2 of this report. component audit teams of relevant fraud risks identified at the Group level and request to component audit teams to report to Our conclusions based on this work: the Group audit team any instances of fraud that could give rise to a material misstatement at the Group level. • we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial As required by auditing standards, and taking into account statements is appropriate; possible pressures to meet profit targets, we perform procedures to address the risk of management override of controls and the • we have not identified, and concur with the directors’ risk of fraudulent revenue recognition, in particular: the risk assessment that there is not, a material uncertainty related that Group and component management may be in a position to events or conditions that, individually or collectively, may to make inappropriate accounting entries; the risk of bias in cast significant doubt on the Group’s or Company’s ability to accounting estimates and judgements; and the risk that new continue as a going concern for the going concern period; vehicle revenue is overstated through recording revenues in the and incorrect period. • we found the going concern disclosure in note 2 to be We also identified fraud risks related to inappropriate acceptable capitalisation of development costs and inappropriate impairment assumptions in relation to the value in use estimate, However, as we cannot predict all future events or conditions in response to possible pressures to meet profit targets. and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time Our response in respect of the identified fraud risk related they were made, the above conclusions are not a guarantee that to inappropriate impairment assumptions is set out in the the Group or the Company will continue in operation. procedures described in the key audit matter disclosure in section 2 of this report including specifically our critical challenge 5. FRAUD AND BREACHES OF LAWS AND REGULATIONS – of management’s estimates with reference to external data. ABILITY TO DETECT Our response in respect of the identified fraud risk related to inappropriate capitalisation of product engineering costs was Identifying and responding to risks of material misstatement predominantly through our testing of journal entries as described due to fraud in the following paragraphs. To identify risks of material misstatement due to fraud (“fraud In determining the audit procedures we took into account the risks”) we assessed events or conditions that could indicate an results of our evaluation and testing of the operating effectiveness incentive or pressure to commit fraud or provide an opportunity of the Group-wide fraud risk management controls. to commit fraud. Our risk assessment procedures included: We also performed procedures including: • Enquiring of Directors, the audit committee, internal audit and certain senior managers as to the Group’s high-level • Identifying journal entries to test for all relevant full scope policies and procedures to prevent and detect fraud, components based on risk criteria tailored for the risks at including the internal audit function, and the Group’s each component and comparing the identified entries to channel for “whistleblowing”, as well as whether they supporting documentation. Examples of the criteria applied have knowledge of any actual, suspected or alleged fraud. include those posted by senior finance management, those posted and approved by the same user, those posted to • Reading Board and audit committee minutes. unusual accounts, and those moving costs from accounts ineligible for capitalisation to accounts that are eligible as • Considering remuneration incentive schemes and capitalised project engineering costs. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 65

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INDEPENDENT AUDITOR’S REPORT • Assessing whether the judgements made in making with these laws and regulations to enquiry of the Directors accounting estimates are indicative of a potential bias. and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational • Assessing when revenue was recognised, particularly regulations is not disclosed to us or evident from relevant focusing on revenue recognised in the days before the year correspondence, an audit will not detect that breach. end date, and whether it was recognised in the correct year. Context of the ability of the audit to detect fraud or breaches • Critically assessing the Directors’ judgements regarding of law or regulation identified product engineering development costs capitalised in relation to against both the accounting Owing to the inherent limitations of an audit, there is an standards and our experience of practical application of unavoidable risk that we may not have detected some material these standards in other companies. misstatements in the financial statements, even though we have properly planned and performed our audit in accordance Work on the fraud risks was performed by a combination of with auditing standards. For example, the further removed non-component auditors and the group audit team. compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely Identifying and responding to risks of material misstatement the inherently limited procedures required by auditing standards due to non-compliance with laws and regulations would identify it.    We identified areas of laws and regulations that could reasonably In addition, as with any audit, there remained a higher risk of be expected to have a material effect on the financial statements non-detection of fraud, as these may involve collusion, forgery, from our general commercial and sector experience, and intentional omissions, misrepresentations, or the override of through discussion with the Directors and other management internal controls. Our audit procedures are designed to detect (as required by auditing standards), and from inspection of the material misstatement. We are not responsible for preventing Group’s regulatory and legal correspondence and discussed with non-compliance or fraud and cannot be expected to detect non-the Directors and other management the policies and procedures compliance with all laws and regulations. regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our 6. WE HAVE NOTHING TO REPORT ON THE OTHER team and remained alert to any indications of non-compliance INFORMATION IN THE ANNUAL REPORT throughout the audit. This included communication from the Group audit team to component audit teams of relevant laws The Directors are responsible for the other information presented and regulations identified at the Group level, and a request for in the Annual Report together with the financial statements. Our component auditors to report to the group team any instances opinion on the financial statements does not cover the other of non-compliance with laws and regulations that could give rise information and, accordingly, we do not express an audit opinion to a material misstatement at the Group level. or, except as explicitly stated below, any form of assurance conclusion thereon. The potential effect of these laws and regulations on the financial statements varies considerably. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements Firstly, the Group is subject to laws and regulations that directly audit work, the information therein is materially misstated affect the financial statements including financial reporting or inconsistent with the financial statements or our audit legislation (including related companies legislation), distributable knowledge. Based solely on that work we have not identified profits legislation, taxation legislation, and pension legislation material misstatements in the other information. and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial Strategic report and directors’ report statement items.    Based solely on our work on the other information: Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could • we have not identified material misstatements in the have a material effect on amounts or disclosures in the financial strategic report and the directors’ report; statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely • in our opinion the information given in those reports for the to have such an effect: product compliance, environmental, financial year is consistent with the financial statements; health and safety, data protection laws, bribery and corruption, and employment law, and export controls, recognising the nature    of the Group’s activities and its legal form. Auditing standards • in our opinion those reports have been prepared in limit the required audit procedures to identify non-compliance accordance with the Companies Act 2006.

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7. WE HAVE NOTHING TO REPORT ON THE OTHER 9. THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY OWE OUR RESPONSIBILITIES EXCEPTION    This report is made solely to the Company’s members, as a body, Under the Companies Act 2006, we are required to report to you in accordance with Chapter 3 of Part 16 of the Companies Act if, in our opinion: 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required • adequate accounting records have not been kept by the to state to them in an auditor’s report and for no other purpose. parent Company, or returns adequate for our audit have not To the fullest extent permitted by law, we do not accept or been received from branches not visited by us; or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this • the parent Company financial statements are not in report, or for the opinions we have formed. agreement with the accounting records and returns; or    • certain disclosures of Directors’ remuneration specified by law are not made; or    • we have not received all the information and explanations we require for our audit.    We have nothing to report in these respects.    8. RESPECTIVE RESPONSIBILITIES Simon Haydn-Jones (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor    Directors’ responsibilities    Chartered Accountants    As explained more fully in their statement set out on pages 55 One Snowhill and 56, the Directors are responsible for: the preparation of the Snow Hill Queensway financial statements including being satisfied that they give Birmingham a true and fair view; such internal control as they determine is B4 6GH necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud 13 June 2022    or error; assessing the Group and parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.    Auditor’s responsibilities    Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 67

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FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT Year ended 31 March (Ł millions) Note 2022 2021 2020 Revenue 5 18,320 19,731 22,984 Material and other cost of sales* 4,6 (11,239) (12,335) (14,684) Employee costs* 4,7 (2,265) (2,141) (2,568) Other expenses* 4,10 (3,701) (3,589) (5,238) Exceptional items 4 (43) (1,523) (29) Other income 9 200 195 174 Engineering costs capitalised 11 455 727 1,369 Depreciation and amortisation 13 (1,944) (1,976) (1,910) Foreign exchange gain/(loss) and fair value adjustments 13 140 331 (249) Finance income 12 9 11 52 Finance expense (net) 12 (369) (251) (209) Share of loss of equity accounted investments 15 (18) (41) (114) Loss before tax (455) (861) (422) Income tax expense 14 (367) (239) (47) Loss for the year (822) (1,100) (469) Attributable to: Owners of the Company (818) (1,101) (471) Non-controlling interests (4) 1 2 *‘Material and other cost of sales’, ‘Employee costs’ and ‘Other expenses’ exclude the exceptional items explained in note 4. The notes on pages 72 to 139 are an integral part of these consolidated financial statements. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE Year ended 31 March (Ł millions) Note 2022 2021 2020 Loss for the year (822) (1,100) (469) Items that will not be reclassified subsequently to profit or loss: Remeasurement of net defined benefit obligation 32 707 (751) 983 Income tax related to items that will not be reclassified 14 (92) 143 (155)    615 (608) 828 Items that may be reclassified subsequently to profit or loss: (Loss)/gain on cash flow hedges (net) (896) 546 304 Currency translation differences 24 (41) 21 Income tax related to items that may be reclassified 14 205 (103) (57)    (667) 402 268 Other comprehensive (expense)/income net of tax (52) (206) 1,096 Total comprehensive (expense)/income attributable to shareholder (874) (1,306) 627 Attributable to: Owners of the Company (870) (1,307) 625 Non-controlling interests (4) 1 2 The notes on pages 72 to 139 are an integral part of these consolidated financial statements.

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CONSOLIDATED BALANCE SHEET As at 31 March (Ł millions) Note 2022 2021 2020 Non-current assets Investments in equity accounted investees 15 321 316 362 Other non-current investments 16 30 22 37 Other financial assets 17 185 341 257 Property, plant and equipment 18 6,253 6,461 6,814 Intangible assets 19 4,866 5,387 6,278 Right-of-use assets 36 568 543 568 Pension asset 32 434—408 Other non-current assets 20 35 32 23 Deferred tax assets 14 336 397 523 Total non-current assets 13,028 13,499 15,270 Current assets Cash and cash equivalents 21 4,223 3,778 2,271 Short-term deposits and other investments 175 1,004 1,393 Trade receivables 722 863 833 Other financial assets 19 394 477 383 Inventories 23 2,781 3,022 3,468 Other current assets 20 493 448 477 Current tax assets 20 80 9 Assets classified as held for sale 4 — Total current assets 8,812 9,672 8,834 Total assets 21,840 23,171 24,104 Current liabilities Accounts payable 24 5,144 6,308 6,499 Short-term borrowings 25 1,779 1,206 526 Other financial liabilities 26 870 746 1,073 Provisions 27 989 1,161 944 Other current liabilities 28 674 638 716 Current tax liabilities 116 100 100 Total current liabilities 9,572 10,159 9,858 Non-current liabilities Long-term borrowings 25 5,248 4,972 4,817 Other financial liabilities 26 871 625 778 Provisions 27 1,112 1,188 1,355 Retirement benefit obligation 32 25 387 28 Other non-current liabilities 28 404 461 533 Deferred tax liabilities 14 105 116 179 Total non-current liabilities 7,765 7,749 7,690 Total liabilities 17,337 17,908 17,548 Equity attributable to shareholders Ordinary shares 29 1,501 1,501 1,501 Capital redemption reserve 29 167 167 167 Other reserves 30 2,835 3,586 4,880 Equity attributable to shareholders 4,503 5,254 6,548 Non-controlling interests — 9 8 Total equity 4,503 5,263 6,556 Total liabilities and equity 21,840 23,171 24,104 The notes on pages 72 to 139 are an integral part of these consolidated financial statements. These consolidated financial statements were approved by the JLR plc Board and authorised for issue on 13 June 2022. They were signed on its behalf by: THIERRY BOLLORÉ CHIEF EXECUTIVE OFFICER COMPANY REGISTERED NUMBER: 06477691 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 69    

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FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Ordinary Capital Other Equity Non- Total (Ł millions) shares redemption reserves attributable to controlling equity reserve shareholder interests Balance at 1 April 2021 1,501 167 3,586 5,254 9 5,263 Loss for the year — (818) (818) (4) (822) Other comprehensive expense for the year — (52) (52)—(52) Total comprehensive expense — (870) (870) (4) (874) Amounts removed from hedge reserve and recognised in inventory — 147 147—147 Income tax related to amounts removed from hedge reserve and recognised in inventory — (28) (28)—(28) Disposal of subsidiaries — — (5) (5) Balance at 31 March 2022 1,501 167 2,835 4,503—4,503 Balance at 1 April 2020 1,501 167 4,880 6,548 8 6,556 (Loss)/profit for the year — (1,101) (1,101) 1 (1,100) Other comprehensive expense for the year — (206) (206)—(206) Total comprehensive (expense)/ — (1,307) (1,307) 1 (1,306) income Amounts removed from hedge reserve and recognised in inventory — 16 16—16 Income tax related to amounts removed from hedge reserve and recognised in inventory — (3) (3)—(3) Balance at 31 March 2021 1,501 167 3,586 5,254 9 5,263 Balance at 1 April 2019 1,501 167 4,305 5,973 6 5,979 Adjustment on initial application of — (23) (23) (23) IFRS 16 (net of tax)—Adjusted balance at 1 April 2019 1,501 167 4,282 5,950 6 5,956 (Loss)/profit for the year — (471) (471) 2 (469) Other comprehensive income for the —1,096 1,096—1,096 year—Total comprehensive income — 625 625 2 627 Amounts removed from hedge reserve and recognised in inventory — (33) (33)—(33) Income tax related to amounts removed from hedge reserve and recognised in inventory — 6 6—6 Balance at 31 March 2020 1,501 167 4,880 6,548 8 6,556 The notes on pages 72 to 139 are an integral part of these consolidated financial statements.

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CONSOLIDATED CASH FLOW STATEMENT Year ended 31 March (Ł millions) Note 2022 2021 2020 Cash flows from operating activities Cash generated from operations 38 572 2,536 2,399 Dividends received 15 — 67 Income tax paid (138) (210) (152) Net cash generated from operating activities 434 2,326 2,314 Cash flows from investing activities Investment in equity accounted investments—(1) (67) Purchases of other investments (4) (4) (11) Proceeds from sale of other investments—22 -Investment in other restricted deposits (41) (57) (35) Redemption of other restricted deposits 39 55 31 Movements in other restricted deposits (2) (2) (4) Investment in short-term deposits and other investments (1,104) (3,169) (4,010) Redemption of short-term deposits and other investments 1,935 3,512 3,659 Movements in short-term deposits and other investments 831 343 (351) Purchases of property, plant and equipment (712) (1,050) (1,281) Proceeds from sale of property, plant and equipment 7 8 1 Net cash outflow relating to intangible asset expenditure (481) (799) (1,511) Finance income received 8 14 50 Acquisition of subsidiaries (net of cash acquired) — (3) Disposal of subsidiaries (net of cash disposed) (10) — Net cash used in investing activities (363) (1,469) (3,177) Cash flows from financing activities Finance expenses and fees paid (402) (313) (262) Proceeds from issuance of borrowings 2,095 1,953 1,602 Repayment of borrowings (1,347) (749) (939) Payments of lease obligations (71) (79) (72) Net cash generated from financing activities 275 812 329 Net increase/(decrease) in cash and cash equivalents 346 1,669 (534) Cash and cash equivalents at beginning of year 21 3,778 2,271 2,747 Effect of foreign exchange on cash and cash equivalents 99 (162) 58 Cash and cash equivalents at end of year 21 4,223 3,778 2,271 The notes on pages 72 to 139 are an integral part of these consolidated financial statements. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 71    

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FINANCIAL STATEMENTS NOTES (FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS) 1 Background and operations The Group had available liquidity of Ł6.4 billion at 31 March Jaguar Land Rover Automotive plc (“the Company”) and its 2022, including Ł4.4 billion of cash and cash equivalents and the subsidiaries are collectively referred to as “the Group” or “JLR”. Group’s undrawn Ł2.0 billion revolving credit facility. Within the The Company is a public limited company incorporated and going concern assessment period there is Ł1 billion minimum domiciled in the United Kingdom. The address of its registered quarter-end liquidity covenant attached to the Group’s UKEF office is Abbey Road, Whitley, Coventry, CV3 4LF, England, United loans for the entire period and to the RCF facility from July 2022, Kingdom. and a reduction in the RCF facility to Ł1.5 billion from July 2022. Further details of the Group’s available financing facilities and The Company is a subsidiary of Tata Motors Limited, India and the maturity of facilities is described on page 34. acts as an intermediate holding company for the Jaguar Land Rover business. The principal activity during the year was the The Group has assessed its projected cash flows over the design, development, manufacture and marketing of high- going concern assessment period. This base case uses the performance luxury saloons, specialist sports cars and four- most recent Board-approved forecasts that include the going wheel-drive off-road vehicles. concern assessment period; taking into account the Group’s expectations of the continued supply chain challenges related These consolidated financial statements have been prepared to semiconductor shortages, the diminishing impacts of the in Pound Sterling (GBP) and rounded to the nearest million GBP COVID-19 pandemic and prevailing financial conditions including (Ł million) unless otherwise stated. Results for the year ended the impact of inflationary pressures on material costs. The Group and as at 31 March 2020 have been disclosed solely for the saw a gradual improvement in chip supply during the quarter information of the users. ended 31 March 2022 leading to improved production and wholesale volumes compared to the previous two quarters. This 2 Accounting information and policies is expected to continue through the year ending 31 March 2023 although the situation remains uncertain. Statement of compliance The base case assumes an improvement in wholesale volumes in These consolidated and parent company financial statements the going concern assessment period compared to the previous have been prepared in accordance with UK-adopted international twelve months, reflecting gradual improvement in semiconductor accounting standards. supply, and proactive management of semiconductor supplies to maximise production of higher margin products. The Company has taken advantage of section 408 of the Companies Act 2006 and, therefore, the separate financial The Group has also carried out a reverse stress test against the statements of the Company do not include the income statement base case to determine the decline in wholesale volume over a or the statement of comprehensive income of the Company on twelve-month period that would result in a liquidity level that a stand-alone basis. breaches financing covenants. The reverse stress test assumes continued supply constraints resulting in demand that exceeds Basis of preparation supply over the twelve-month period and assumes optimisation of supply to maximise production of higher margin products. The consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments, In order to reach a liquidity level that breaches covenants, it would which are measured at fair value at the end of each reporting require a sustained decline in wholesale volumes of more than period as explained in the accounting policies in note 35. The 60% compared to the base case over a twelve-month period. balance sheet and accompanying notes as at 31 March 2020 The reverse stress test reflects the variable profit impact of the have been disclosed solely for the information of the users. wholesale volume decline, and assumes all other assumptions are held in line with the base case. It does not reflect other Going concern potential upside measures that could be taken in such a reduced volume scenario; or any new funding. The Financial Statements have been prepared on a going concern basis, which the Directors consider to be appropriate for the The Group does not consider this scenario to be plausible reasons set out below. given that the stress test volumes are significantly lower than the volumes achieved during both the peak of the COVID-19 The Directors have assessed the financial position of the Group pandemic and the worst quarter of semiconductor shortages. as at 31 March 2022, and the projected cash flows of the Group The Group has a record order bank as at 31 March 2022 and for the twelve-month period from the date of authorisation of is confident that it can significantly exceed reverse stress test the financial statements (the ‘going concern assessment period’). volumes.

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arrangement whereby the parties that have joint control of the The Group has considered the impact of severe but plausible arrangement have rights to the net assets of the arrangement. downside scenarios and the expected wholesale volumes under each of these scenarios is much higher than under the reverse Associates are those entities over which the Group has significant stress test. influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not The Directors, after making appropriate enquiries and taking control or joint control of those policies. Significant influence is into consideration the risks and uncertainties facing the Group, presumed to exist when the Group holds between 20 and 50 per consider that the Group and parent company have adequate cent of the voting power of the investee unless it can be clearly financial resources to continue in operational existence demonstrated that this is not the case. throughout the Going Concern Assessment Period, meeting their liabilities as they fall due. Accordingly, the Directors continue to The results, assets and liabilities of joint ventures and associates adopt the going concern basis in preparing these consolidated are incorporated in these financial statements using the equity and parent company financial statements. method of accounting as described in note 15. Accounting policies Use of estimates and judgements Accounting policies are included in the relevant notes to the The preparation of financial statements in conformity with IFRS consolidated financial statements on pages 72 to 139. The requires the use of judgements, estimates and assumptions accounting policies below are applied throughout the financial that affect the reported amounts of assets and liabilities at the statements. date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Those that Climate change are significant to the Group are discussed separately below. In the preparation of these consolidated financial statements, Judgements the Group has considered the potential effects of climate change, related regulatory requirements and of the targets set In the process of applying the Group’s accounting policies, out in the Group’s Strategic Report. Where relevant, these are management has made the following judgements, which have a included within assumptions and estimates used to determine significant effect on the amounts recognised in the consolidated the carrying value of assets and liabilities at 31 March 2022. In financial statements: particular, the Group has considered the impact on the future cash flows used in the impairment assessment of its cash- Revenue recognition: The Group uses judgement to determine generating unit (see note 19); and on its provisions for the costs when control of its goods, primarily vehicles and parts, pass to of compliance with emission regulations (see note 27). the customer. This is assessed with reference to indicators of control, including the risks and rewards of ownership and legal Basis of consolidation title with reference to the underlying terms of the customer contract. Refer to note 5 for further information. Subsidiaries The consolidated financial statements include Jaguar Land Rover Assessment of cash-generating units: The Group has Automotive plc and its subsidiaries. Subsidiaries are entities determined that there is one cash-generating unit. This is on controlled by the Company. Control exists when the Company the basis that there are no smaller groups of assets that can (a) has power over the investee, (b) is exposed or has rights to be identified with certainty that generate specific cash inflows variable return from its involvement with the investee and (c) that are independent of the inflows generated by other assets or has the ability to affect those returns through its power to direct groups of assets. Refer to note 19 for further information. relevant activites of the investee. Relevant activites are those activities that significantly affect an entity’s returns. In assessing Alternative performance measures (APMs) and exceptional control, potential voting rights that currently are exercisable are items: The Group exercises judgement in determining the taken into account, as well as other contractual arrangements adjustments to apply to IFRS measurements in order to that may influence control. Intercompany transactions and derive APMs that provide additional useful information on the balances including unrealised profits are eliminated in full on underlying trends and in classifying items as exceptional items. consolidation. Refer to notes 3 and 4 for further information. Joint ventures and associates (equity accounted investments) Capitalisation of product engineering costs: The Group applies A joint arrangement is an arrangement of which two or more judgement in determining at what point in a vehicle programme’s parties have joint control. Joint control is the contractually agreed life cycle the recognition criteria under IAS 38 are satisfied. Refer sharing of control of an arrangement, which exists only when to note 19 for further information. decisions about the relevant activities require the unanimous consent of the parties sharing control. A joint venture is a joint Deferred tax asset recognition: The extent to which deferred Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 73

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FINANCIAL STATEMENTS tax assets can be recognised is based on an assessment of the supplies, and other expenses incurred for product development availability of future taxable income against which the deductible undertaken by the Group. temporary differences and tax loss carry-forwards can be utilised. The Group has exercised judgement in determining the Material and other cost of sales as reported in the consolidated jurisdictions in which deferred tax assets have not been fully income statement is presented net of the impact of realised recognised. This has been done based on forecast profitability foreign exchange relating to derivatives hedging cost exposures. and historical results of the companies in which the deferred tax assets arise. Refer to note 14 for further information. Foreign currency Estimates and assumptions The Company has a functional currency of GBP. The presentation currency of the consolidated financial statements is GBP. The areas where assumptions and estimates are significant to the financial statements are as described below. The estimates and Transactions in currencies other than the functional currency of associated assumptions are based on historical experience and the entity are recorded at the exchange rate prevailing on the date various other factors that are believed to be reasonable under the of transaction. Foreign currency denominated monetary assets circumstances, the results of which form the basis of making the and liabilities are remeasured into the functional currency at the judgements about carrying values of assets and liabilities that exchange rate prevailing on the balance sheet date. Exchange are not readily apparent from other sources. Actual results may differences are recognised in the consolidated income statement differ from these estimates. Significant estimates are those that as “Foreign exchange gain/(loss) and fair value adjustments”. have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next year. For the purposes of presenting consolidated financial statements, Other estimates are those that may affect carrying amounts in the assets and liabilities of the Group’s foreign operations (non-the longer term. GBP functional currency) are translated at exchange rates prevailing on the balance sheet date. Income and expense items Significant estimates are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognised in other Impairment of intangible and tangible fixed assets: The Group comprehensive income and accumulated in equity. has intangible assets with indefinite lives and therefore tests annually whether intangible and tangible fixed assets have Impairment suffered any impairment. Refer to note 19 for further information on the key assumptions and sensitivities used in the testing these Property, plant and equipment and intangible assets assets for impairment. At each balance sheet date, the Group assesses whether there is any indication that any property, plant and equipment and Retirement benefit obligation: The present value of the post- intangible assets with finite lives may be impaired. If any such employment benefit obligations depends on a number of factors impairment indicator exists, the recoverable amount of an asset and assumptions, including discount rate, inflation and mortality is estimated to determine the extent of impairment, if any. assumptions. Refer to note 32 for details of these assumptions Where it is not possible to estimate the recoverable amount of and sensitivities. an individual asset, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs. Other estimates Intangible assets with indefinite useful lives and intangible assets Product warranties: refer to note 27 for further information. not yet available for use are tested for impairment annually, or earlier if there is an indication that the asset may be impaired. Variable marketing expense: refer to note 5 for further information. Recoverable amount is the higher of fair value less costs of sale and value in use. In assessing value in use, the estimated future Impairment in equity accounted investees: refer to note 15 for cash flows are discounted to their present value using a pre-tax further information. discount rate that reflects current market assessments of the time value of money and the risks specific to the asset (or cash Restructuring: refer to note 27 for further information. generating unit) for which the estimates of future cash flows have not been adjusted. Cost recognition If the recoverable amount of an asset (or cash-generating unit) Costs and expenses are recognised when incurred and are is estimated to be less than its carrying amount, the carrying classified according to their nature. amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised Expenditures are capitalised, where appropriate, in accordance immediately in the consolidated income statement. with the policy for internally generated intangible assets and represent employee costs, stores and other manufacturing An asset (or cash-generating unit) impaired in prior years is

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reviewed at each balance sheet date to determine whether there • Annual improvements to IFRS standards 2018-2020 cycle; is any indication of a reversal of impairment losses recognised in prior years. • Amendments to IAS 16 Property, Plant and Equipment – Proceeds before intended use; New accounting policy pronouncements • IFRS 17 Insurance Contracts; and (a) Standards, revisions and amendments to standards and interpretations not significant to the Jaguar Land Rover Group • Amendments to IFRS 17 and IFRS 19 Initial Application of and applied for the first time in the year ending 31 March 2022 IFRS 17 and IFRS 9—Comparative Information. The following amendments and interpretations have been The Group is currently assessing the impact of these adopted by the Group in the year ending 31 March 2022. pronouncements on the consolidated financial statements. • Amendments to IFRS 9 Financial Instruments, IAS 39 (c) Standards, revisions and amendments to standards and Financial Instruments: Recognition and Measurement, IFRS interpretations not yet endorsed by the UK and not yet adopted 7 Financial Instruments, IFRS 4 Insurance Contracts and by the Group IFRS 16 Leases: Disclosures – Interest rate benchmark reform; and The following pronouncements, issued by the IASB, have not yet been endorsed by the UK, are not yet effective and have not yet • Amendments to IFRS 16 Leases – COVID-19 related rent been adopted by the Group. concessions beyond 30 June 2021. • Amendments to IAS 1 Presentation of Financial Statements The adoption of these amendments and interpretations has not – Classification of liabilities as current or non-current; had a significant impact on the consolidated financial statements. • Amendments to IAS 1 Presentation of Financial Statements (b) Standards, revisions and amendments to standards and – disclosure of accounting policies; interpretations not yet effective and not yet adopted by the Group • Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – definition of accounting The following pronouncement, issued by the IASB and endorsed estimates; and by the UK, is not yet effective and has not yet been adopted by the Group. This amendment is effective for annual report periods • Amendments to IAS 12 Deferred Tax related to Assets and beginning on or after 1 January 2022. Liabilities arising from a Single Transaction. • Amendments to IFRS 3 Business Combinations – Reference to the conceptual framework; • Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets – Onerous contracts – cost of fulfilling a contract; Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 75

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FINANCIAL STATEMENTS 3 Alternative Performance Measures In reporting financial information, the Group presents alternative performance measures (“APMs”) that are not defined or specified under the requirements of IFRS. The Group believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with additional helpful information on the performance of the business. The APMs used within this Annual Report are defined below. Alternative performance Definition measure Adjusted EBITDA Adjusted EBITDA is defined as profit before: income tax expense; exceptional items; finance expense (net of capitalised interest) and finance 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 value; foreign exchange gains/losses on other assets and liabilities, including short-term deposits and cash and cash equivalents; share of profit/loss from equity accounted investments; depreciation and amortisation. Adjusted EBIT Adjusted EBIT is defined as for adjusted EBITDA but including share of profit/loss from equity accounted investments, depreciation and amortisation. Profit/(loss) before tax and Profit/(loss) before tax excluding exceptional items. exceptional items Free cash flow Net cash generated from operating activities less net cash used in automotive investing activities, excluding investments in consolidated entities and movements in financial investments, and after finance expenses and fees paid. Financial investments are those reported as cash and cash equivalents, short-term deposits and other investments, and equity or debt investments held at fair value. Total product and other investment Cash used in the purchase of property, plant and equipment, intangible assets, investments in equity accounted investments and other trading investments, acquisition of subsidiaries and expensed research and development costs. Working capital Changes in assets and liabilities as presented in note 38. This comprises movements in assets and liabilities excluding movements relating to financing or investing cash flows or non-cash items that are not included in adjusted EBIT or adjusted EBITDA. Total cash and cash equivalents, Defined as cash and cash equivalents, short-term deposits and other investments, marketable securities deposits and investments and any other items defined as cash and cash equivalents in accordance with IFRS. Available liquidity Defined as total cash and cash equivalents, deposits and investments plus committed undrawn credit facilities. Net debt Total cash and cash equivalents, deposits and investments less total interest-bearing loans and borrowings. Retail sales Jaguar Land Rover retail sales represent vehicle sales made by dealers to end customers and include the sale of vehicles produced by our Chinese joint venture, Chery Jaguar Land Rover Automotive Company Ltd. Wholesales Wholesales represent vehicle sales made to retailers or other external customers. The Group recognises revenue on wholesales. The Group uses adjusted EBITDA as an APM to review and Free cash flow is considered by the Group to be a key measure in measure the underlying profitability of the Group on an ongoing assessing and understanding the total operating performance of basis for comparability as it recognises that increased capital the Group and to identify underlying trends. expenditure year on year will lead to a corresponding increase in depreciation and amortisation expense recognised within the Total product and other investment is considered by the Group to consolidated income statement. be a key measure in assessing cash invested in the development of future new models and infrastructure supporting the growth The Group uses adjusted EBIT as an APM to review and measure of the Group. the underlying profitability of the Group on an ongoing basis as this excludes volatility on unrealised foreign exchange Working capital is considered by the Group to be a key measure transactions. Due to the significant level of debt and currency in assessing short-term assets and liabilities that are expected derivatives held, unrealised foreign exchange can distort the to be converted into cash within the next 12-month period. financial performance of the Group from one period to another.

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Total cash and cash equivalents, deposits and investments and available liquidity are measures used by the Group to assess liquidity and the availability of funds for future spend and investment. Exceptional items are defined in note 4. Reconciliations between these alternative performance measures and statutory reported measures are shown below and on the next page. Adjusted EBIT and Adjusted EBITDA Year ended 31 March (Ł millions) Note 2022 2021 2020 Adjusted EBITDA 1,896 2,531 2,050 Depreciation and amortisation (1,944) (1,976) (1,910) Share of loss of equity accounted investments 15 (18) (41) (114) Adjusted EBIT (66) 514 26 Foreign exchange gain on derivatives 13—14 15 Unrealised gain/(loss) on commodities 13 48 137 (78) Foreign exchange (loss)/gain and fair value adjustments on loans 13 (141) 314 (135) Foreign exchange gain/(loss) on economic hedges of loans 13 91 (143) 29 Foreign exchange gain/(loss) on balance sheet, cash and deposits 13 12 64 (50) revaluation Finance income 12 9 11 52 Finance expense (net) 12 (369) (251) (209) Fair value gain/(loss) on equity investments 13 4 2 (43) (Loss)/profit before tax and exceptional items (412) 662 (393) Exceptional items 4 (43) (1,523) (29) Loss before tax (455) (861) (422) Free cash flow Year ended 31 March (Ł millions) 2022 2021 2020 Net cash generated from operating activities 434 2,326 2,314 Purchases of property, plant and equipment (712) (1,050) (1,281) Net cash outflow relating to intangible asset expenditure (481) (799) (1,511) Proceeds from sale of property, plant and equipment 7 8 1 Investment in equity accounted investees—(1) (67) Acquisition of subsidiaries (net of cash acquired) — (3) Disposal of subsidiaries (net of cash disposed) (10) —Finance expenses and fees paid (402) (313) (262) Finance income received 8 14 50 Free cash flow (1,156) 185 (759) Total product and other investments Year ended 31 March (Ł millions) Note 2022 2021 2020 Purchases of property, plant and equipment 712 1,050 1,281 Net cash outflow relating to intangible asset expenditure 481 799 1,511 Engineering costs expensed 11 839 489 421 Investment in equity accounted investees—1 67 Purchases of other investments 4 4 11 Acquisition of subsidiary (net of cash acquired) — 3 Total product and other investments 2,036 2,343 3,294 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 77

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FINANCIAL STATEMENTS Total cash and cash equivalents, deposits and investments As at (Ł millions) 2022 2021 2020 Cash and cash equivalents 4,223 3,778 2,271 Short-term deposits and other investments 175 1,004 1,393 Total cash and cash equivalents, deposits and investments 4,398 4,782 3,664 Available liquidity As at 31 March (Ł millions) Note 2022 2021 2020 Cash and cash equivalents 4,223 3,778 2,271 Short-term deposits and other investments 175 1,004 1,393 Committed undrawn credit facilities 25 2,015 1,938 1,935 Available liquidity 6,413 6,720 5,599 Net debt As at (Ł millions) 2022 2021 2020 Cash and cash equivalents 4,223 3,778 2,271 Short-term deposits and other investments 175 1,004 1,393 Interest-bearing loans and borrowings (7,597) (6,697) (5,884) Net debt (3,199) (1,915) (2,220) Retail and wholesales Year ended 31 March (units) 2022 2021 2020 Retail sales 376,381 439,588 508,659 Wholesales 294,182 347,632 475,952 4 Exceptional items • Costs associated with provisions and related reversals arising from a significant one-off event not in the normal Exceptional items are disclosed separately in the consolidated course of business. income statement and excluded from adjusted EBIT and adjusted EBITDA measures to support the reader’s understanding of the The exceptional items recognised in the year ended 31 March performance of the Group. 2022 comprise: The Group considers qualitative and quantitative factors to • Ł43 million in relation to customer liabilities arising from determine whether a transaction or event is exceptional, including sanctions imposed against Russia by many countries, the expected size, nature and frequency of the transaction or preventing the shipment of vehicles and certain parts to the event, and any precedent for similar items in previous years. market. Items that are considered exceptional may include the following: • Updates to the assessment of the impact of the Group’s Reimagine strategy relating to the exceptional items • Costs associated with significant restructuring events; recognised during the year ended 31 March 2021.    • Impairments or reversals of impairments arising from an impairment assessment of the Group’s cash-generating unit in accordance with IAS 36; • Defined benefit past service costs or credits arising from scheme amendments; and    

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The exceptional items recognised in the year ended 31 March • An update of Ł9 million to the past service cost recognised 2021 comprise: due to the requirement to equalise male and female members’ benefits for the inequalities within guaranteed • Asset write-downs of Ł952 million in relation to models minimum pension (‘GMP’) earned between 17 May 1990 cancelled under the Group’s Reimagine strategy. See notes and 5 April 1997 based on new information. See note 32. 18 and 19. The exceptional item recognised in the year ended 31 March • Restructuring costs of Ł562 million comprising 2020 comprises restructuring costs of Ł29 million relating to a Group restructuring programme that commenced during the • Costs of Ł534 million resulting from the Group’s year ended 31 March 2019. This included a past service pension Reimagine strategy comprising accruals to settle legal cost of Ł4 million. obligations on work performed to date and provisions for redundancies and other third party obligations. See The tables below set out the exceptional items (expense/ note 27. Included within the restructuring costs is a (credit)) recorded in the years ended 31 March 2022, 2021 and defined benefit past service cost of Ł7 million. See note 2020 and the impact on the consolidated income statement if 32.                these items were not disclosed separately as exceptional items. • Costs of Ł28 million resulting from a separate redundancy programme during the year. See note 27. Material and Year ended 31 March 2022 (Ł millions) Other expenses Employee costs other cost of sales Excluding exceptional items 3,701 2,265 11,239 Restructuring costs—asset write-downs 7 —Restructuring costs—employee and third party obligations (73) (16) 82 Other 43 — Including exceptional items 3,678 2,249 11,321 Material and Year ended 31 March 2021 (Ł millions) Note Other expenses Employee costs other cost of sales Excluding exceptional items 3,589 2,141 12,335 Restructuring costs—asset write-downs 952 —Restructuring costs—employee and third party obligations 252 116 194 Pension past service cost 32—9—Including exceptional items 4,793 2,266 12,529 Year ended 31 March 2020 (Ł millions) Other expenses Employee costs Excluding exceptional items 5,238 2,568 Restructuring costs (3) 32 Including exceptional items 5,235 2,600 Included in “Income tax expense” in the consolidated income statement for the year ended 31 March 2022 is Łnil in respect of exceptional items (2021, 2020: credit of Ł6 million). Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 79    

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FINANCIAL STATEMENTS 5 Revenue Revenue recognition As described in note 37, the Group operates with a single automotive reporting segment, principally generating revenue Revenue comprises the consideration earned by the Group in from the sales of vehicles, parts and accessories. respect of the output of its ordinary activities. It is measured based on the contract price, which is the consideration specified in the The sale of vehicles also can include additional services provided contract with the customer and excludes amounts collected on to the customer at the point of sale, for which the vehicle and behalf of third parties, and net of settlement discounts, bonuses, services are accounted for as separate performance obligations, rebates and sales incentives. The Group’s primary customers as they are considered separately identifiable. The contract from the sale of vehicles, parts and accessories are retailers, fleet transaction price is allocated among the identified performance and corporate customers, and other third-party distributors. The obligations based on their stand-alone selling prices. Where the Group recognises revenue when it transfers control of a good or stand-alone selling price is not readily observable, it is estimated service to a customer, thus evidencing the satisfaction of the using an appropriate alternative approach. associated performance obligation under that contract. Significant Nature, timing of satisfaction of performance obligations, and significant payment terms revenue areas Vehicles, parts, The Group recognises revenue on the sale of vehicles, parts and accessories at the point of “wholesale”, which is determined and accessories by the underlying terms and conditions of the contract with the customer as to when control transfers to them. The principle (and other of control under IFRS 15 considers which party has the ability to direct the use of an asset and to obtain substantially all of the goods) remaining economic benefits. Determining the transfer of control with regards to the sale of goods is primarily driven by: • The point at which the risks and rewards of ownership pass to the customer; • The point at which the customer takes physical possession of the good or product; • The point at which the customer accepts the good or product; • The point at which the Group has a present right to payment for the sale of the good or product; and • The point at which legal title to the good or product transfers to the customer. In the vast majority of cases, the sale of the relevant good is recognised at the point of dispatch (at release to the carrier responsible for transportation to the customer) or the point of delivery to the customer, depending on individual contractual arrangements. In some instances, revenue may be recognised on a bill-and-hold basis where vehicles, for example, are sold to the customer but are retained in the Group’s possession at a vehicle holding compound on behalf of the customer ahead of being physically transferred to them at a future time. Such arrangements meet the criteria for bill-and-hold arrangements under IFRS 15 to ensure that the customer has obtained the ultimate control of the product when revenue is recognised. The reason for the bill-and-hold is substantive (as the customer requests JLR to retain possession, usually due to a lack of available space at their own premises), the vehicles are identifiable as separately belonging to the customer (on the basis that each vehicle has a unique Vehicle Identification Number), the vehicle must be ready for physical transfer to the customer (which it is, given that it is fully built and safety-checked off the manufacturing line) and the Group does not have the ability to use the vehicle or direct it elsewhere.                The Group operates with financing partners across the world that provide wholesale financing arrangements to the retail network for vehicle sales, which enables cash settlement to occur immediately (usually within two working days) for purchases from the Group. For the sale of parts and accessories, the Group typically receives payment in line with the invoice payment terms stipulated and agreed with its customers, which are usually 30 days.

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Significant Nature, timing of satisfaction of performance obligations, and significant payment terms revenue areas Sales incentives The costs associated with providing sales support and incentives (variable marketing expense) are considered to be variable components of consideration, thus reducing the amount of revenue recognised by the Group. Under IFRS 15, the Group ensures that variable consideration is recognised to the extent of the amount to which it expects to be entitled. To meet this principle, the Group constrains its estimate of variable consideration to include amounts only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty associated is subsequently resolved. The Group estimates the expected sales incentive by market and considers uncertainties including competitor pricing, ageing of dealer stock and local market conditions. The constraint on variable consideration is estimated with reference to historical accuracy, current market conditions and a prospective assessment considering relevant geopolitical factors, including global stock positions for both the Group and its third party dealer network reflecting the pipeline of vehicle inventory for sale to end customers. Variable consideration received for contracts with multiple performance obligations is allocated to all such obligations only when applicable. For example, with the sale of a vehicle, the cost of the incentive provided is allocated entirely to the vehicle as its purpose is to incentivise the sale of the vehicle rather than support any additional obligations. Scheduled Scheduled maintenance contracts sold with a vehicle provide the end customer with the benefit of bringing their vehicle to a maintenance dealership for the routine maintenance required to maintain compliance for warranty purposes. contracts The majority of plans sold by the Group are complimentary with the vehicle, thus payment is received at the same time as the proceeds from the vehicle sale, at which point the amount is recognised as a contract liability based on the stand-alone selling price, which is measured using a cost-plus approach. Revenue is recognised over the life of the plan based on the expected performance of the services from the point of a vehicle being retailed to an end customer and aligned to the expected profile of costs to fulfil those services based on historical information. Telematics Telematics features provide a service to the customer typically aligned to the warranty period of the vehicle, allowing a vehicle to connect and interact with an end customer’s mobile phone. The Group typically receives payment relating to telematics features at the same time as the proceeds from the vehicle sale, at which point the amount is recognised as a contract liability based on the stand-alone selling price. For optional features, this is measured at the observable option price and for standard-fit features is measured using a cost-plus basis. The stand-alone selling price for telematics subscription renewals is measured at the renewal price offered to the customer. Revenue is recognised on a straight-line basis over the term of the service from the point of the vehicle being retailed to an end customer in line with the expected costs to fulfil those services. Warranty Vehicles and parts sold by the Group include a standard warranty to guarantee the vehicle complies with agreed-upon considerations specifications for a defined period of time. Where the warranty offering to the end customer exceeds the standard market as a service expectation for similar products, or provides a service in excess of the assurance that the agreed-upon specification is met, the Group considers this to constitute a service to the end customer and therefore a separate performance obligation. Revenue is recognised on a straight-line basis over the contractual period to which the warranty service relates, up to which point it is recognised as a contract liability. Repurchase Some contracts with customers include an option or obligation for the Group to repurchase the product sold (including arrangements repurchasing a product originally sold as part of an amended product). Such instances are common in the Group’s arrangements with third-party fleet customers or in contract manufacturing arrangements that the Group is party to. The Group does not recognise revenue on the original sale, as it retains ultimate control of that product. The related inventory continues to be recognised on the Group’s consolidated balance sheet. The consideration received from the customer is treated as a liability. Where the contractual repurchase price is less than the original sale price, the transaction is accounted for as a lease and where the contractual repurchase price is more than or equal to the original sale price the transaction is accounted for as a financing arrangement. Revenue recognised under such lease arrangements is outside of the scope of IFRS 15 and instead is recognised in line with IFRS 16 Leases. Revenue relating to the good or product is recognised only when it is sold by the Group with no repurchase obligation or option attached. Returns Vehicle sales do not typically include allowances for returns or refunds, although in some markets there is legislative requirement obligations, for Jaguar Land Rover as an automotive manufacturer to repurchase or reacquire a vehicle if quality issues arise that have been refunds and remedied a number of times and where the owner no longer wishes to own the vehicle as a result. similar obligations Regarding other goods, where rights of return may be prevalent, the Group estimates the level of returns based on the historical data for specific products, adjusted as necessary to estimate returns for new products. Revenue is not recognised for expected returns—instead the Group recognises a refund liability and asset where required. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 81

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FINANCIAL STATEMENTS The Group’s revenues are summarised as follows: Year ended 31 March (Ł millions) 2022 2021 2020 Revenue recognised for sales of vehicles, parts and accessories 17,159 18,775 22,436 Revenue recognised for services transferred 324 314 306 Revenue—other 762 753 807 Total revenue from contracts with customers 18,245 19,842 23,549 Realised revenue hedges 75 (111) (565) Total revenue 18,320 19,731 22,984 “Revenue – other” includes sales of goods other than vehicles, parts and accessories. Revenue disaggregation The following table presents the Group’s revenue, disaggregated and major product categories. All revenue is generated from the by primary geographical market, timing of revenue recognition Group’s single automotive operating segment. Year ended 31 March 2022 (Ł millions) UK US China Rest of Rest of Total Europe World Revenue Revenue recognised for sales of vehicles, parts and accessories 2,377 4,104 4,166 3,221 3,291 17,159 Revenue recognised for services transferred 108 101 7 24 84 324 Revenue—other 679 6 64 3 10 762 Total revenue from contracts with customers 3,164 4,211 4,237 3,248 3,385 18,245 Realised revenue hedges—109 (61)—27 75 Total revenue 3,164 4,320 4,176 3,248 3,412 18,320 Year ended 31 March 2021 (Ł millions) UK US China Rest of Rest of Total Europe World Revenue Revenue recognised for sales of vehicles, parts and accessories 3,008 4,663 4,546 3,551 3,007 18,775 Revenue recognised for services transferred 126 95 5 10 78 314 Revenue—other 656 3 85 2 7 753 Total revenue from contracts with customers 3,790 4,761 4,636 3,563 3,092 19,842 Realised revenue hedges—(97) (75)—61 (111) Total revenue 3,790 4,664 4,561 3,563 3,153 19,731 Year ended 31 March 2020 (Ł millions) UK US China Rest of Rest of Total Europe World Revenue Revenue recognised for sales of vehicles, parts and accessories 3,875 5,889 3,374 4,745 4,553 22,436 Revenue recognised for services transferred 63 91 75 11 66 306 Revenue—other 786 4 5 1 11 807 Total revenue from contracts with customers 4,724 5,984 3,454 4,757 4,630 23,549 Realised revenue hedges—(370) (166)—(29) (565) Total revenue 4,724 5,614 3,288 4,757 4,601 22,984    

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Contract liabilities As at 31 March (Ł millions) 2022 2021 2020 Ongoing service obligations 681 766 846 Liabilities for advances received 122 61 50 Total contract liabilities 803 827 896 Revenue that is expected to be recognised within five years or less. This is because revenue resulting from those sales will be related to performance obligations that are unsatisfied (or recognised in a short-term period. The services included with the partially unsatisfied) amounted to Ł803 million at 31 March vehicle sale are to be recognised as revenues in subsequent years 2022 (2021: Ł827 million, 2020: Ł896 million). but represent an insignificant portion of expected revenues in comparison. “Ongoing service obligations” mainly relate to long-term service and maintenance contracts, extended warranties and The movement in contract liabilities relates solely to revenue telematics services. “Liabilities for advances received” primarily recognised from balances held at the beginning of the year of relate to consideration received in advance from customers for Ł385 million (2021: Ł364 million, 2020: Ł392 million) and products not yet wholesaled, at which point the revenue will increases due to cash received for performance obligations be recognised. “Ongoing service obligations” and “Liabilities for unsatisfied at the year end of Ł361 million (2021: Ł295 million, advances received” are both presented within “Other liabilities” 2020: Ł397 million). in the consolidated balance sheet. Revenue recognised in the year from performance obligations The Group applies the practical expedient in IFRS 15.121 and satisified in the previous year is Ł13 million (2021: Ł100 million, does not disclose information about remaining performance 2020: Ł33 million). obligations that have an original expected duration of one year 6 Material and other cost of sales Year ended 31 March (Ł millions) 2022 2021 2020 Changes in inventories of finished goods and work-in-progress 279 469 121 Purchase of products for sale 1,172 1,029 1,105 Raw materials and consumables used 9,654 10,838 13,498 Realised purchase hedges 134 (1) (40) Total material and other cost of sales 11,239 12,335 14,684 7 Employee numbers and costs Year ended 31 March (Ł millions) 2022 2021 2020 Wages and salaries—employee costs 1,626 1,545 1,833 Wages and salaries—agency costs 95 73 175 Total wages and salaries 1,721 1,618 2,008 Social security costs and benefits 312 288 312 Pension costs 232 235 248 Total employee costs 2,265 2,141 2,568 Employee costs in the year ended 31 March 2022 includes Ł14 million (2021: Ł188 million, 2020: Ł10 million) credit in relation to employees placed on furlough under the UK Coronavirus Job Retention Scheme. Average employee numbers for the year ended 31 March Non-agency Agency Total 2022 Manufacturing 17,268 751 18,019 Research and development 7,893 394 8,287 Other 9,430 295 9,725 Total employee numbers 34,591 1,440 36,031 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 83

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FINANCIAL STATEMENTS Average employee numbers for the year ended 31 March Non-agency Agency Total 2021 Manufacturing 18,231 754 18,985 Research and development 8,158 556 8,714 Other 9,527 317 9,844 Total employee numbers 35,916 1,627 37,543 Average employee numbers for the year ended 31 March Non-agency Agency Total 2020 Manufacturing 18,833 1,219 20,052 Research and development 7,965 1,411 9,376 Other 9,733 626 10,359 Total employee numbers 36,531 3,256 39,787 8 Directors’ emoluments Year ended 31 March (Ł) 2022 2021 2020 Directors’ emoluments 4,001,943 5,509,867 3,459,163 (Decrease)/increase of long-term incentive scheme amounts receivable (30,253) 479,444 803,472 Post-employment benefits—1,164,478 349,442 The aggregate of emoluments received in the year and amounts There were no directors who were members of a defined benefit accrued under the bonus schemes of the highest paid director pension scheme or a defined contribution scheme during the was Ł3,652,103 (2021: Ł3,962,991, 2020: Ł4,099,544), years ended 31 March 2022, 2021 and 2020. together with a cash allowance in lieu of pension and medical benefits of Łnil (2021: Ł1,164,478, 2020: Ł349,442). During LTIP cash payments received by directors during the year ended the year, the value of LTIP awards accrued has increased by Łnil 31 March 2022 were Ł686,000 (2021: Ł421,000, 2020: Łnil). (2021: Ł479,444, 2020: Ł803,472), which will become payable in future periods. 9 Other income Government grants are recognised when there is reasonable cost of the asset and amortised over the useful life of the asset. assurance that the Group will comply with the relevant conditions Government grants related to income are presented as an offset and the grant will be received. against the related expenditure, and government grants that are awarded as incentives with no ongoing performance obligations Government grants are recognised in the consolidated income to the Group are recognised as other income in the period in statement, either on a systematic basis when the Group which the grant is received. recognises, as expenses, the related costs that the grants are intended to compensate or immediately, if the costs have already Sales tax incentives received from governments are recognised been incurred. in the consolidated income statement at the reduced tax rate, and revenue is reported net of these sales tax incentives. Government grants related to assets are deducted from the Year ended 31 March (Ł millions) 2022 2021 2020 Grant income 68 81 66 Commissions 17 20 14 Other 115 94 94 Total other income 200 195 174 During the year ended 31 March 2022, Ł42 million (2021: Ł40 due to receive and for which there are no ongoing financial or million, 2020: Ł12 million) was recognised in “Other income” operating conditions attached. by a foreign subsidiary as an incentive for continuing trading in that country for the foreseeable future. This includes amounts received as cash in the year and amounts that the subsidiary is

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10 Other expenses Year ended 31 March (Ł millions) Note 2022 2021 2020 Stores, spare parts and tools 86 88 112 Freight cost 485 499 611 Works, operations and other costs 1,722 1,714 2,471 Repairs 28 23 38 Power and fuel 158 72 87 Rent, rates and other taxes 37 31 32 Insurance 23 19 23 Write-down of property, plant and equipment 18 3 —Write-down of intangible assets 19 9 40 -Product warranty 748 706 1,131 Publicity 402 397 733 Total other expenses 3,701 3,589 5,238 11 Engineering costs capitalised Year ended 31 March (Ł millions) 2022 2021 2020 Total engineering costs incurred 1,294 1,216 1,790 Engineering costs expensed (839) (489) (421) Engineering costs capitalised 455 727 1,369 Interest capitalised in engineering costs capitalised 41 88 105 Research and development grants capitalised (39) (46) (48) Total internally developed intangible additions 457 769 1,426 Engineering costs capitalised of Ł455 million (2021 : Ł727 million, as a Research and Development Expenditure Credit (“RDEC”) 2020: Ł1,369 million) comprises Ł236 million (2021: Ł345 incentive on qualifying expenditure. During the year ended 31 million, 2020: Ł471 million) included in “Employee costs” and March 2022, Ł39 million (2021: Ł46 million, 2020: Ł47 million) Ł219 million (2021: Ł382 million, 2020: Ł898 million) included of the RDEC – the proportion relating to capitalised product in “Other expenses” in the consolidated income statement. development expenditure and other intangible assets – has been offset against the cost of the respective assets. The remaining During the year ended 31 March 2022, Ł73 million (2021: Ł87 Ł34 million (2021: Ł41 million, 2020: Ł55 million) of the RDEC million, 2020: Ł102 million) was recognised by a UK subsidiary has been recognised as “Other income”. 12 Finance income and expense Year ended 31 March (Ł millions) 2022 2021 2020 Finance income 9 11 52 Total finance income 9 11 52 Interest expense on lease liabilities (45) (44) (45) Total interest expense on financial liabilities other than lease (365) (296) (250) liabilities measured at amortised cost Interest income on derivatives designated as a fair value 7 7 3 hedge of financial liabilities Unwind of discount on provisions (10) (16) (31) Interest capitalised 44 98 114 Total finance expense (net) (369) (251) (209) The capitalisation rate used to calculate borrowing costs eligible During the year ended 31 March 2022 the Group issued no debt for capitalisation was 4.6 per cent (2021: 4.3 per cent, 2020: 4.2 at a premium (2021: no debt issued at a premium, 2020: one per cent). tranche of debt issued at a premium of Ł9 million). Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 85

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FINANCIAL STATEMENTS 13 Loss before tax Expense/(income) in loss before tax includes the following: Year ended 31 March (Ł millions) 2022 2021 2020 Foreign exchange loss/(gain) and fair value adjustments on loans 141 (314) 135 Foreign exchange (gain)/loss on economic hedges of loans (91) 143 (29) Foreign exchange gain on derivatives—(14) (15) Foreign exchange (gain)/loss on balance sheet, cash and deposits revaluation (11) (64) 50 Other foreign exchange (gain)/loss (43) 57 (8) Realised gain on commodities (84)—(5) Unrealised (gain)/loss on commodities (48) (137) 78 Fair value (gain)/loss on equity investments (4) (2) 43 Depreciation of right-of-use assets 87 94 92 Depreciation of property, plant and equipment 863 898 929 Amortisation of intangible assets (excluding internally generated development costs) 76 88 101 Amortisation of internally generated development costs 918 896 788 Expenses related to short-term leases 10 9 13 Expenses related to low-value assets, excluding short-term leases of low-value 9 7 7 assets Charge/(credit) for changes in lease payments arising from COVID-19 rent conces- 1 (3) -sions (Profit)/loss on disposal of property, plant, equipment and software (1) (1) 20 Exceptional items 43 1,523 29 Auditor remuneration (see below) 5 6 7 The following table sets out the auditor remuneration for the year (rounded to the nearest Ł0.1 million): Year ended 31 March (Ł millions) 2022 2021 2020 Fees payable to the Company’s auditor and its associates for the audit of the parent company and consolidated financial statements 0.1 0.1 0.1 Fees payable to the Company’s auditor and its associates for other services:—Audit of the Company’s subsidiaries 4.2 4.5 5.6 Total audit fees 4.3 4.6 5.7 Audit-related assurance services 0.8 0.8 0.8 Other assurance services 0.3 0.4 0.3 Total non-audit fees 1 .1 1.2 1.1 Total audit and related fees 5.4 5.8 6.8 14 Taxation Income tax expense comprises current and deferred taxes. tax consequences of temporary differences between the Income tax expense is recognised in the consolidated income carrying values of assets and liabilities and their respective statement, except when related to items that are recognised tax bases, and unutilised business loss and depreciation carry-outside of profit or loss (whether in other comprehensive income forwards and tax credits. Such deferred tax assets and liabilities or directly in equity) or where related to the initial accounting for are computed separately for each taxable entity and for each a business combination. In the case of a business combination, taxable jurisdiction. Deferred tax assets are recognised to the the tax effect is included in the accounting for the business extent that it is probable that future taxable income will be combination. Current income taxes are determined based on available against which the deductible temporary differences, respective taxable income of each taxable entity and tax rules unused tax losses, depreciation carry-forwards and unused tax applicable for respective tax jurisdictions. credits could be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the Deferred tax assets and liabilities are recognised for the future extent that it is no longer probable that sufficient taxable profits

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Deferred tax assets and liabilities are measured based on the tax Tax provisions are recognised for uncertain tax positions where rates that are expected to apply in the year when the asset is a risk of an additional tax liability has been identified and it is realised or the liability is settled, based on the tax rates and tax probable that the Group will be required to settle that tax. laws that have been enacted or substantively enacted by the Measurement is dependent on management’s expectations of balance sheet date. the outcome of decisions by tax authorities in the various tax jurisdictions in which the Group operates. This is assessed on a Current and deferred tax assets and liabilities are offset when case-by-case basis using in-house experts, professional firms there is a legally enforceable right to set off current tax assets and previous experience. Where no provision is required the against current tax liabilities and when they relate to income exposure is disclosed as a contingent liability in note 33 unless taxes levied by the same taxation authority and the Group the likelihood of an outflow of economic benefits is remote. intends to settle its current tax assets and liabilities on a net basis. Judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions. The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilised. Amounts recognised in the consolidated income statement: Year ended 31 March (Ł millions) 2022 2021 2020 Current tax expense Current year 226 155 178 Adjustments for prior years (5) 2 3 Current tax expense 221 157 181 Deferred tax expense/(credit) Origination and reversal of temporary differences 149 92 (164) Adjustments for prior years (3) (12) (11) Write-down of deferred tax assets — (8) Rate changes—2 49 Deferred tax expense/(credit) 146 82 (134) Total income tax expense 367 239 47 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 87    

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FINANCIAL STATEMENTS Amounts recognised in the consolidated statement of other comprehensive income: Year ended 31 March (Ł millions) 2022 2021 2020 Deferred tax expense/(credit) on actuarial gains/losses on retirement 134 (143) 186 benefits Deferred tax (credit)/expense on change in fair value of cash flow hedges (170) 103 58 Deferred tax credit on rate changes (77)—(32) (113) (40) 212 Total tax expense 254 199 259 Reconciliation of effective tax rate: Year ended 31 March (Ł millions) 2022 2021 2020 Loss for the year (822) (1,100) (469) Total income tax expense 367 239 47 Loss before tax (455) (861) (422) Income tax credit using the tax rates applicable to individual entities of (20) (131) (59) 4.4% (2021: 15.2%, 2020: 14.0%) Non-deductible expenses 33 62 28 Unrecognised or written-down deferred tax assets 331 285 9 Changes in tax rates—2 49 Overseas unremitted earnings 28 23 6 Tax on share of profit of equity accounted investments 3 8 22 Over provided in prior years (8) (10) (8) Total income tax expense 367 239 47 The net underlying statutory tax rate represents the blended accounting write-down of assets not qualifying for tax relief. The average of the tax rates suffered on profits and losses earned in charge of Ł285 million in relation to “Unrecognised or written-our various countries of operation. The current position reflects down deferred tax assets” arises as a result of the inability to the fact that statutory tax rates applicable in profitable non-UK fully recognise UK deferred tax assets arising in the year. The subsidiaries are higher than the UK tax rate applied to UK losses. “Over provided in prior years” credit of Ł10 million arises as a result of the finalisation of prior year tax submissions with global Included within “Unrecognised or written-down deferred tax tax authorities. assets” for the year ended 31 March 2022 is a charge of Ł331 million as a result of the inability to fully recognise UK deferred Included within “Over provided in prior years” for the year ended tax assets arising in the year. The “Over provided in prior years” 31 March 2020 is Ł7 million credit relating to revisions of prior credit of Ł8 million arises as a result of the finalisation of year estimates of tax positions in various jurisdictions, principally prior year tax submissions with global tax authorities and the the UK, to bring them into line with the latest estimates and conclusion of certain tax risks. currently filed tax positions. Included within “Changes in tax rates” is a Ł49 million charge for the impact of the change in the Included within “Non-deductible expenses” for the year ended UK Statutory rate from 17 per cent to 19 per cent on deferred 31 March 2021 is a charge of Ł45 million relating to the tax assets and liabilities.

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Impact of Future Rate Changes March 2021, and was substantively enacted on 24 May 2021. The UK Finance Act 2016 was enacted during the year ended 31 Accordingly, UK deferred tax has been provided at a rate of 25 March 2017, which included provisions for a reduction in the UK per cent on assets (2021, 2020: 19 per cent) and 25 per cent on corporation tax rate to 17 per cent with effect from 1 April 2020. liabilities (2021, 2020: 19 per cent), recognising the applicable tax rate at the point when the timing difference is expected to Subsequently a change to the main UK corporation tax rate, reverse. announced in the Budget on 11 March 2020, was substantively enacted for IFRS purposes on 17 March 2020. The rate applicable Deferred tax assets and liabilities from 1 April 2020 now remains at 19 per cent, rather than the previously enacted reduction to 17 per cent. A further change Significant components of deferred tax assets and liabilities for to the main UK corporation tax rate from 19 to 25 percent with the year ended 31 March 2022 are as follows: effect from 1 April 2023 was announced in the Budget on 3 Recognised Recognised Reclassified (Ł millions) Opening in profit or in other from other Foreign Closing balance loss comprehen- equity reser- exchange balance sive income ves Deferred tax assets Property, plant & equipment 767 321 ——1,088 Expenses deductible in future periods 260 (43) — 11 228 Derivative financial instruments (24) (28) 205 (28)—125 Retirement benefits 72 20 (92) — -Unrealised profit in inventory 103 (30) ——73 Tax loss 65 (46) ——19 Other 51 (51) — — Total deferred tax asset 1,294 143 113 (28) 11 1,533 Deferred tax liabilities Intangible assets 902 188 ——1,090 Overseas unremitted earnings 111 (6) ——105 Compensated absence and retirement —107 ——107 benefits Total deferred tax liability 1,013 289 ——1,302 Presented as deferred tax asset* 397 336 Presented as deferred tax liability* (116) (105) *For balance sheet presentation purposes, deferred tax assets and deferred tax liabilities are offset to the extent that they relate to the same taxation authority and are expected to be settled on a net basis. At 31 March 2022, deferred tax assets of Ł336 million (2021: At 31 March 2022 the group had unused tax losses and other Ł397 million, 2020: Ł523 million) have been recognised in temporary differences amounting to Ł3,746 million (2021: relation to deductible temporary differences, including unused Ł2,693 million, 2020: Ł1,660 million) for which no deferred tax tax losses, on the basis that it is probable that future taxable asset has been recognised on the basis of forecast profitability of profits will be available against which those deductible temporary the companies in which the deferred tax assets arise. These tax differences can be utilised. losses are due to expire as follows: As at 31 March (Ł millions) 2022 2021 2020 No expiry 3,742 2,676 1,645 2027 or later 4 17 15 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 89

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FINANCIAL STATEMENTS All deferred tax assets and deferred tax liabilities at 31 March 2022, 2021 and 2020 are presented as non-current. Significant components of deferred tax assets and liabilities for the year ended 31 March 2021 were as follows: Recognised Recognised in Reclassified (Ł millions) Opening in profit or other from other Foreign Closing balance loss comprehensive equity reserves exchange balance income Deferred tax assets Property, plant & equipment 635 132 ——767 Expenses deductible in future periods 377 (100) — (17) 260 Derivative financial instruments 70 12 (103) (3)—(24) Retirement benefits (74) 3 143 — 72 Unrealised profit in inventory 125 (22) ——103 Tax loss 219 (153) — (1) 65 Other 145 (94) ——51 Total deferred tax asset 1,497 (222) 40 (3) (18) 1,294 Deferred tax liabilities Intangible assets 1,043 (141) ——902 Overseas unremitted earnings 110 1 ——111 Total deferred tax liability 1,153 (140) ——1,013 Presented as deferred tax asset* 523 397 Presented as deferred tax liability* (179) (116) *For balance sheet presentation purposes, deferred tax assets and deferred tax liabilities are offset to the extent that they relate to the same taxation authority and are expected to be settled on a net basis. Significant components of deferred tax assets and liabilities for the year ended 31 March 2020 were as follows: Adjustment Adjusted Recognised Recognised Reclassified (Ł millions) Opening on initial Opening in profit or in other from other Foreign Closing balance application balance loss comprehen- equity reserves exchange balance of IFRS 16 sive income Deferred tax assets Property, plant & equipment 544 3 547 87 — 1 635 Expenses deductible in future 325—325 51 — 1 377 periods Derivative financial instruments 134—134 (14) (56) 6—70 Retirement benefits 113—113 (32) (155) — (74) Unrealised profit in inventory 120—120 6 (1) — 125 Tax loss 78—78 141 ——219 Other 126—126 19 ——145 Total deferred tax asset 1,440 3 1,443 258 (212) 6 2 1,497 Deferred tax liabilities Intangible assets 928—928 115 ——1,043 Overseas unremitted earnings 101—101 9 ——110 Total deferred tax liability 1,029—1,029 124 ——1,153 Presented as deferred tax asset* 512 523 Presented as deferred tax (101) (179) liability* *For balance sheet presentation purposes, deferred tax assets and deferred tax liabilities are offset to the extent that they relate to the same taxation authority and are expected to be settled on a net basis.    

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15 Investments in equity accounted investees An interest in an associate or joint venture is accounted for Dividends are recognised when the right to receive payment is using the equity method from the date the investee becomes established. an associate or a joint venture and is recognised initially at cost. The carrying value of investment in associates and joint Impairment of equity accounted investments ventures includes goodwill identified on date of acquisition, net of any accumulated impairment losses. The consolidated The requirements of IAS 28 Investments in Associates and financial statements include the Group’s share of profits or Joint ventures are applied to determine whether it is necessary losses, other comprehensive income and equity movements of to recognise any impairment loss with respect to the Group’s equity accounted investments, from the date that joint control investment in a joint venture or an associate. When necessary, or significant influence commences until the date that joint the entire carrying amount of the investment (including goodwill) control or significant influence ceases. When the Group’s share is tested for impairment in accordance with IAS 36 Impairment of losses exceeds its interest in an equity accounted investment, of assets as a single asset by comparing its recoverable amount the carrying amount of that interest (including any long-term (the higher of value in use and fair value less costs of disposal) interests in the nature of net investments) is reduced to nil with its carrying amount. Any impairment loss recognised forms and the recognition of further losses is discontinued except to part of the carrying amount of the investment. Any reversal of the extent that the Group has incurred constructive or legal that impairment loss is recognised in accordance with IAS 36 obligations or has made payments on behalf of the investee. to the extent that the recoverable amount of the investment subsequently increases. When the Group transacts with a joint venture or associate of the Group, profits and losses are eliminated to the extent of the Group’s interest in its joint venture or associate. (A) Associates Details of the Group’s associates as at 31 March 2022 are as follows: Principal place of Name of Proportion of business and Principal activity Registered office address investment voting rights country of incorporation Jaguar Cars Finance 280 Bishopsgate, London, EC2M 4RB, 49.9% England & Wales Non-trading Limited England Business and domestic 84 Kirkland Avenue, Ilford, Essex, England, Synaptiv Limited 33.3% England & Wales software development IG5 0TN Holding company and Driveclubservice Pte. 22 Sin Ming Lane, #06-76, Midview City, 25.1% Singapore mobility application Limited Singapore 573969 owner/licensor Unit A, 9/F, D2 Place ONE, 9 Cheung Yee Driveclub Limited 25.8% Hong Kong Vehicle leasing Street, Lai Chi Kok, Kowloon, Hong Kong Manufacture and development of The Priory Barn Priory Road, Wolston, ARC V Limited 15.0% England & Wales electrified vehicle Coventry, United Kingdom, CV8 3FX technology Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 91    

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FINANCIAL STATEMENTS Except for Driveclub Limited and ARC V Limited, the proportion The aggregate summarised financial information in respect of of voting rights disclosed in the table above is the same as the Group’s immaterial associates that are accounted for using the Group’s interest in the ordinary share capital of each undertaking. equity method is set out below. The Group has no material associates as at 31 March 2022. As at 31 March (Ł millions) 2022 2021 2020 Carrying amount of the Group’s interests in associates ——Year ended 31 March (Ł millions) 2022 2021 2020 Group’s share of loss and total comprehensive expense — (2) in associates (B) Joint ventures Details of the Group’s material joint venture as at 31 March 2022 are as follows: Principal place of Name of Proportion of business and Principal Registered office address investment voting rights country of activity incorporation Room 1102, Binjiang International Plaza, No Chery Jaguar Land Manufacture 88 Tonggang Road, Rover Automotive 50.0% China and assembly of Changshu Economic and Technical Company Ltd. vehicles Development Zone, Suzhou City, Jiangsu Province, China Chery Jaguar Land Rover Automotive Company Ltd. is a limited The joint venture is accounted for using the equity method and liability company whose legal form confirms separation between is a private company and there are no quoted market prices the parties to the joint arrangement. There is no contractual available for its shares. arrangement or any other facts or circumstances that indicate that the parties to the joint control of the arrangement have The following tables sets out the summarised financial rights to the assets or obligations for the liabilities relating to the information of the Group’s individually material joint venture, arrangement. Accordingly, Chery Jaguar Land Rover Automotive Chery Jaguar Land Rover Automotive Company Ltd., after Company Ltd. is classified as a joint venture. Chery Jaguar Land adjusting for material differences in accounting policies: Rover Automotive Company Ltd. is not publicly listed.

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As at 31 March (Ł millions) 2022 2021 2020 Cash and cash equivalents 391 323 278 Current financial liabilities (excluding trade and other (447) (501) (584) payables and provisions) Non-current financial liabilities (excluding trade and other (39) (5) (82) payables and provisions) Current assets 629 566 599 Current liabilities (1,380) (1,364) (1,348) Non-current assets 1,443 1,446 1,570 Non-current liabilities (42) (13) (82) Net assets of material joint venture 650 635 739 Year ended 31 March (Ł millions) 2022 2021 2020 Revenue 1,669 1,820 1,295 Loss for the year (36) (83) (224) Total comprehensive expense (36) (83) (224) The above total comprehensive expense includes the following: Depreciation and amortisation (181) (201) (201) Interest income 5 7 14 Interest expense (net) (17) (20) (25) Income tax credit 20 31 56 A reconciliation of the summarised financial information to the carrying amount of the Group’s material joint venture recognised in the consolidated balance sheet is given below: As at 31 March (Ł millions) 2022 2021 2020 Net assets of material joint venture 650 635 739 Share of net assets of material joint venture 325 318 370 Other consolidation adjustments (5) (3) (8) Carrying amount of the Group’s material joint venture 320 315 362 As at 31 March 2022, an adjustment of Ł5 million (2021: Ł3 Ltd. of Łnil (2021: Łnil, 2020: Ł67 million). million, 2020: Ł8 million) has been made to derecognise profit that has not yet been realised on goods sold by the Group to During the year ended 31 March 2022, the Group increased its Chery Jaguar Land Rover Automotive Company Ltd.. investment in Chery Jaguar Land Rover Automotive Company Ltd. by Łnil (2021: Łnil, 2020: Ł67 million). During the year ended 31 March 2022, the Group received a dividend from Chery Jaguar Land Rover Automotive Company Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 93    

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FINANCIAL STATEMENTS Details of the Group’s immaterial joint ventures as at 31 March 2022 are as follows: Principal place of Name of Proportion of business and Principal activity Registered office address investment voting rights country of incorporation Jaguar Land Rover Vehicle sales and Emil Frey Strasse, 5745 Safenwill 30.0% Switzerland Switzerland Ltd distribution Inchcape JLR Europe 22a St James’s Square, London, United 30.0% UK Vehicle distribution Limited Kingdom, SW1Y 5LP The summarised financial information in respect of the Group’s immaterial joint ventures accounted for using the equity method is set out below: As at 31 March (Ł millions) 2022 2021 2020 Carrying amount of the Group’s interests in immaterial 1 1 -joint ventures As at 31 March (Ł millions) 2022 2021 2020 Group’s share of loss and total comprehensive expense of — -immaterial joint ventures (C) Summary of carrying amount of the Group’s investment in equity accounted investees As at 31 March (Ł millions) 2022 2021 2020 Carrying amount of material joint venture 320 315 362 Carrying amount of immaterial joint ventures 1 1 -Carrying amount of immaterial associates ——Carrying amount of the Group’s interests in equity 321 316 362 accounted investees Year ended 31 March (Ł millions) 2022 2021 2020 Share of loss of material joint venture (18) (41) (112) Share of loss of immaterial joint ventures — -Share of loss of immaterial associates — (2) Share of loss of equity accounted investees (18) (41) (114) Year ended 31 March (Ł millions) 2022 2021 2020 Currency translation differences – material joint venture 26 (11) 1 Share of other comprehensive income/(expense) of 26 (11) 1 equity accounted investees    

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16 Other non-current investments The Group’s other investments comprise equity investments of companies and are designated as fair value through profit and 10 per cent or less of the ordinary share capital of the investee loss financial instruments. As at 31 March (£ millions) 2022 2021 2020 Investment in Lyft Inc — 17 Other investments 30 22 20 Total 30 22 37 During the year ended 31 March 2022, the Group invested £4 ordinary share capital, and during the year ended 31 March 2022 million (2021: £4 million, 2020: £11 million) in other investments. no dividends were received (2021, 2020: no dividends). A fair value gain of £4 million was recognised during the year (2021: gain of £2 million, 2020: loss of £1 million). Disclosure of the valuation techniques applied in calculating the fair value of these other non-equity accounted investments is The Group has no additional rights or influence over any of these included in note 35(A). equity investments other than the voting rights attached to the    17 Other financial assets As at 31 March (£ millions) 2022 2021 2020 Non-current Restricted cash 10 8 7 Derivative financial instruments 98 249 142 Warranty reimbursement and other receivables 63 73 102 Other 14 11 6 Total non-current other financial assets 185 341 257 Current Restricted cash 13 12 12 Derivative financial instruments 185 281 241 Warranty reimbursement and other receivables 72 70 87 Accrued income 39 26 14 Other 85 88 29 Total current other financial assets 394 477 383 Other financial assets pledged as collateral against borrowings are disclosed in note 25. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 95

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FINANCIAL STATEMENTS 18 Property, plant and equipment Property, plant and equipment is stated at cost of acquisition or Interest cost incurred for constructed assets is capitalised up construction less accumulated depreciation and accumulated to the date the asset is ready for its intended use, based on impairment, if any. Land is not depreciated. borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific Cost includes purchase price, non-recoverable taxes and duties, borrowings have been incurred for the asset. labour cost and direct overheads for self-constructed assets and other direct costs incurred up to the date the asset is ready for Depreciation is charged on a straight-line basis over the its intended use. estimated useful lives of the assets. Estimated useful lives of the assets are as follows: Class of property, plant and equipment Estimated useful life (years) Buildings 20 to 40 Plant, equipment and leased assets 3 to 30 Vehicles 3 to 10 Computers 3 to 6 Fixtures and fittings 3 to 20 The depreciation period for property, plant and equipment with for its intended use. Assets under construction include capital finite useful lives is reviewed at least at each year end. Changes advances. Depreciation is not recorded on heritage assets as the in expected useful lives are treated as changes in accounting Group considers their residual value to approximate their cost. estimates. An item of property, plant and equipment is derecognised on Assets held under leases are depreciated over their expected disposal or when it is withdrawn from use and no future economic useful lives on the same basis as owned assets or, where shorter, benefits are expected from its disposal. Any gain or loss arising the term of the relevant lease. Freehold land is measured at cost from derecognition is included in profit or loss. and is not depreciated. Residual values are reassessed on an annual basis. An annual review of the carrying value of heritage assets is performed as the assets are held at cost and not depreciated. Depreciation is not recorded on assets under construction until Any write-down in the carrying value of heritage assets is construction and installation are complete and the asset is ready recognised immediately in the consolidated income statement.    

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Land and Plant and Compu- Fixtu- Leased Heritage Under (£ millions) buildings equip- Vehicles ters res and assets vehicles construc- Total ment fittings tion Cost Balance at 1 April 2019 2,261 8,765 9 164 125 32 54 706 12,116 Adjustment on initial (9) — — (32) — (41) application of IFRS 16 Adjusted opening balance 2,252 8,765 9 164 125—54 706 12,075 Additions — 8 26 12 — 1,218 1,264 Assets acquired on acqui- 1 — — ——1 sition Transfers 285 895 — ——(1,180) -Disposals—(20) (1) (2) (2)—(1) (11) (37) Foreign currency translation 18 19—1 ——(1) 37 Balance at 31 March 2020 2,556 9,659 16 189 135—53 732 13,340 Additions — 6—2 — 828 836 Transfers 27 606 — ——(633) -Disposals (5) (15) (3) (1) (3)—(4)—(31) Impairment—asset write— — — — (237) (237) downs Foreign currency translation (22) (28)—(1) (1) — 1 (51) Balance at 31 March 2021 2,556 10,222 19 187 133—49 691 13,857 Additions 1 — 12 11 — 657 681 Transfers 52 1,057 1 — — (1,110) -Disposals (1) (84) (4) (5) (8)—(1)—(103) Impairment—asset write— — — — (7) (7) downs Assets classified as held for (8) — ——(2)—(10) sale Foreign currency translation—1 (1)—(2) ——(2) Balance at 31 March 2022 2,600 11,196 15 194 134—46 231 14,416 Depreciation and impairment Balance at 1 April 2019 287 5,135 5 81 71 14 31—5,624 Adjustment on initial appli— — — (14) — (14) cation of IFRS 16 Adjusted opening balance 287 5,135 5 81 71—31—5,610 Depreciation charge for the 112 792 2 14 9 ——929 year Disposals—(14)—(1) (1) ——(16) Foreign currency translation 2 1 — — — 3 Balance at 31 March 2020 401 5,914 7 94 79—31—6,526 Depreciation charge for the 110 761 4 15 8 ——898 year Disposals (3) (15) (2) (1) (3) ——(24) Impairment—asset write- 4 2 — — — 6 downs Foreign currency translation (2) (5)—(2) (1) ——(10) Balance at 31 March 2021 510 6,657 9 106 83—31—7,396 Depreciation charge for the 111 728 2 14 8 ——863 year Disposals (1) (84) (1) (5) (6) ——(97) Assets classified as held for (6) — — ——(6) sale Impairment—asset write— — ——3—3 downs Foreign currency translation ——2 2 ——4 Balance at 31 March 2022 614 7,301 10 117 87—34—8,163 Net book value At 31 March 2020 2,155 3,745 9 95 56—22 732 6,814 At 31 March 2021 2,046 3,565 10 81 50—18 691 6,461 At 31 March 2022 1,986 3,895 5 77 47—12 231 6,253 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 97

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FINANCIAL STATEMENTS As part of the Group’s review of the carrying value of property, Group’s Reimagine strategy. The write-down expense has been plant and equipment, Ł3 million (2021: Łnil, 2020: Łnil) of recognised in ‘exceptional items’ in the consolidated income heritage vehicles have been written down and recognised as an statement. expense within “Other expenses”. Asset write-downs for the year ending 31 March 2022 include Ł7 million (2021: Ł243 million, 2020: Łnil) in relation to the 19 Intangible assets Intangible assets purchased, including those acquired in business supportable. If not, the change in the useful life assessment from combinations, are measured at acquisition cost, which is the indefinite to finite is made on a prospective basis. For intangible fair value on the date of acquisition, where applicable, less assets with finite lives, amortisation is provided on a straight-line accumulated amortisation and accumulated impairment, if any. basis over the estimated useful lives of the acquired intangible Intangible assets with indefinite lives are reviewed annually to assets as per the estimated amortisation periods below: determine whether an indefinite life assessment continues to be Class of intangible asset Estimated amortisation period (years) Software 2 to 8 Patents and technological know-how 2 to 12 Customer related – retailer network 20 Intellectual property rights and other intangibles 3 to indefinite The amortisation for intangible assets with finite useful lives is all other borrowings, if no specific borrowings have been incurred reviewed at least at each year end. Changes in expected useful for the asset. Product engineering cost is amortised over the life lives are treated as changes in accounting estimates. of the related product, being a period of between two and ten years. Capitalised development expenditure is measured at cost Capital work-in-progress includes capital advances. Customer- less accumulated amortisation and accumulated impairment related intangibles acquired in a business combination consist loss, if any. Amortisation is not recorded on product engineering of dealer networks. Intellectual property rights and other in progress until development is complete. intangibles mainly consist of brand names, which are considered to have indefinite lives due to the longevity of the brands. The Group undertakes significant levels of research and development activity, and for each vehicle programme a Internally generated intangible assets periodic review is undertaken. The Group applies judgement in determining at what point in a vehicle programme’s life cycle Research costs are charged to the consolidated income the recognition criteria under IAS 38 are satisfied and estimates statement in the year in which they are incurred. the proportion of central overhead allocated. If a later point had been used then this would have had the impact of reducing the Product engineering costs incurred on new vehicle platforms, amounts capitalised as product engineering costs. If central engines, transmission and new products are recognised as overheads had not been allocated it would have reduced the intangible assets – when feasibility has been established, the amount capitalised by Ł52 million (2021: Ł80 million, 2020: Group has committed technical, financial and other resources to Ł117 million). complete the development and it is probable that the asset will generate future economic benefits. The costs capitalised include the cost of materials, direct labour and directly attributable overhead expenditure incurred up to the date the asset is available for use. Interest cost incurred is capitalised up to the date the asset is ready for its intended use, based on borrowings incurred specifically for financing the asset or the weighted average rate of

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Patents Intellectual Product Product (Ł millions) Software and tech- Customer property rights development development Total nological related and other—completed—in progress know-how intangibles Cost Balance at 1 April 2019 691 147 61 651 6,973 1,990 10,513 Additions—externally purchased 111 — ——111 Additions—internally developed — ——1,426 1,426 Additions—on acquisition ——2 — 2 Transfers — — 944 (944) -Disposals (2) ——(345)—(347) Foreign exchange 2 — (1) — 1 Balance at 31 March 2020 802 147 61 652 7,572 2,472 11,706 Additions—externally purchased 73 — ——73 Additions—internally developed — ——769 769 Transfers — — 1,404 (1,404) -Disposals (1) ——10—9 Impairment—asset write-downs — ——(749) (749) Balance at 31 March 2021 874 147 61 652 8,986 1,088 11,808 Additions—externally purchased 25 — ——25 Additions—internally developed — ——457 457 Transfers — — 987 (987) -Disposals (5) — (2) (955)—(962) Impairment—asset write-downs — ——(9) (9) Balance at 31 March 2022 894 147 61 650 9,018 549 11,319 Amortisation and impairment Balance at 1 April 2019 433 147 40 162 4,104—4,886 Amortisation for the year 96—2 3 788—889 Disposals (2) ——(345)—(347) Balance at 31 March 2020 527 147 42 165 4,547—5,428 Amortisation for the year 82—2 4 896—984 Disposals (1) ——10—9 Balance at 31 March 2021 608 147 44 169 5,453—6,421 Amortisation for the year 71—2 3 918—994 Disposals (5) — (2) (955)—(962) Balance at 31 March 2022 674 147 46 170 5,416—6,453 Net book value At 31 March 2020 275—19 487 3,025 2,472 6,278 At 31 March 2021 266—17 483 3,533 1,088 5,387 At 31 March 2022 220—15 480 3,602 549 4,866 Asset write-downs for the year ending 31 March 2022 include that no one group of assets has been determined to generate Łnil (2021: Ł709 million, 2020: Łnil) in relation to the Group’s cash inflows that are largely independent. In response to the Reimagine strategy. The Reimagine related write-down expense annual requirement of IAS 36, management performed an has been recognised in ‘exceptional items’ in the consolidated impairment assessment as at 31 March 2022. income statement. For the current year assessment, the recoverable value was Impairment testing determined using the value in use (“VIU”) approach outlined in IAS 36. No impairment was identified as the CGU recoverable The directors are of the view that the operations of the Group, amount exceeded its carrying amount by Ł0.6 billion (2021: excluding equity accounted investments, represent a single Ł2.7 billion, 2020: Ł0.4 billion). The reduction in the headroom cash-generating unit (“CGU”). This is because of the degree of has been driven by the risks facing the business as discussed integrated development and manufacturing activities is such in further detail below. The impairment loss recorded in the Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 99    

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FINANCIAL STATEMENTS previous years was not reversed because the underlying reasons (ii) involve a significant amount of judgement and estimation; and for the increased headroom (including the unwind of the discount rate and the impact of depreciation and amortisation of impaired (iii) drive significant changes to the recoverable amount when assets) do not support this. flexed under reasonably possible outcomes. The Group has considered it appropriate to undertake the The directors’ approach and key assumptions used to determine impairment assessment with reference to the Group approved the Group’s CGU VIU were as follows: business plan that was in effect as at the reporting date. The business plan includes a five-year cash flow forecast and contains • Variable profit per unit and volumes – the approach to growth rates that are primarily a function of the Group’s Cycle determining the forecast variable profit per unit and Plan assumptions, historical performance and management’s volumnes is based on consideration of historical performance expectation of future market developments through to 2026/27. and Group Cycle Plan assumptions, along with the impact of risks on future cashflows discussed above. Due to the In forecasting the future cash flows, management have given importance of product mix to the business’ cash flow and due consideration to recent performance and variable profit profit optimisation efforts, the directors consider variable optimisation efforts and have adjusted some of the assumptions profit per unit and volumes to be key assumptions. The in the business plan, in line with the requirements of IAS 36, to variable profit per unit and volumes included in the business take into account possible variations in the amount or timing of plan are largely driven by an updated portfolio as a result future cashflows. In doing so, management has considered other of the Reimagine strategy announced in the previous year, risks, outlined on pages 36 to 39, that impact future cashflows, which especially results in a change in product portfolio in namely: the outer years of the business plan. • near-term supply challenges related to global chip shortages • Terminal value capital expenditure – the 5-year cash flows which has significantly impacted the Group in FY22; timing and amount are based on the latest Cycle Plan. The terminal value has been derived based on the directors • economical and geopolitical factors increasing inflationary best estimate of a maintenance level of capital expenditure pressures; which has been derived from depreciation and amortisation expectations and funding requirements in responses to • disruption on our business from Covid-19 as we continue longer-term industry trends, and risks, which are anticipated to see localised lockdown actions imposed by governments in the VIU calculation. Due to the significance of terminal around the world; and value capital expenditure the directors consider this to be a key assumption. • execution risks associated with our ‘Reimagine’ strategy, with its supporting transformation plan ‘Refocus’, detailed • Discount rate – the approach to determining the discount on pages 14 to 15, which includes a dedicated environmental rate is based on the Capital Asset Pricing Model and a sustainability strategy- ‘Regenerate’. market participant after tax cost of debt. These inputs are based on a typical build up approach. The discount rate is Climate risk regarded as a key assumption as it is the rate which drives the discounted cashflows used to determine the VIU of the Consideration of climate risk is inherent in the development our CGU. forecast cash flows, principally underpinned by the transition to Battery Electric Vehicles as part of our Reimagine strategy. In The Group used a long-term growth rate of 1.7 per cent (2021, executing this strategy, the Group recognises that there are risks 2020: 1.9 per cent) to extrapolate cash flow projections beyond that may result in variations to the forecast cash flows, and as the period covered by the business plan and a pre-tax discount such these risks have been taken into account in the execution rate of 13.4 per cent (2021: 13.6 per cent, 2020: 12.5 per cent). risk adjustments noted above. The VIU is sensitive to certain assumptions, such as Sales, Key assumptions General & Administration (“SG&A”) costs, due to the relative total value but involve limited judgement and estimation and The directors consider the assumptions that impact the value in significant changes are not considered reasonably possible and use are those to which: therefore are not considered to be key assumptions. (i) the recoverable amount is most sensitive;

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Sensitivity to reasonably possible changes to key assumptions As a significant portion of the recoverable amount lies in the Management considers the variable profit and volumes VIU terminal value, management have focussed disclosures on assumptions to be interdependent as movement in one reasonably possible changes that impact the terminal value. assumption will impact the other. For example, the profit optimisation efforts discussed above will likely result in higher Given the inherent uncertainty about how risk may arise, and average variable profit per unit with lower volumes whereas a the interaction of volumes and cost management, management focus on volumes would likely see a reduction in the average consider a net impact on terminal period cash flows to be the variable profit per unit. Consequently, the terminal value variable best means of indicating the sensitivity of the model to such profit sensitivity below incorporates sensitivity in volumes via changes in the terminal period. the impact on variable profit. The value of key assumptions used to calculate the recoverable amount are as follows: As at 31 March 2022 2021 2020 Pre-tax discount rate 13.4% 13.6% 12.5% Terminal value variable profit* (%GVR) 24.8% 21.4% 19.7% Terminal value capital expenditure (%GVR) 10.0% 8.9% 9.1% *Based on forecast variable profit per unit and volumes The table below shows the amount by which the value assigned to the key assumptions must change for the recoverable amount of the CGU to be equal to its carrying amount: 2022 2021 2020 Revised as- % Change Revised as- % Change Revised as- % Change As at 31 March* sumption in assump tion—sumption in assump tion—sumption in assump tion—Pre-tax discount rate 14.6% 8.4% n/a n/a n/a n/a Terminal value variable profit (%GVR) 24.4% (1.7)% 20.1% (6.3)% 19.5% (0.9)% Terminal value capital expenditures (%GVR) 10.3% 3.5% 10.2% 15.1% 9.3% 1.9% Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 101    

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FINANCIAL STATEMENTS 20 Other assets As at 31 March (Ł millions) 2022 2021 2020 Non-current Prepaid expenses 24 17 8 Research and development credit 2 4 -Other 9 11 15 Total non-current other assets 35 32 23 Current Recoverable VAT 204 200 228 Prepaid expenses 208 120 139 Research and development credit 63 104 85 Other 18 24 25 Total current other assets 493 448 477 21 Cash and cash equivalents Cash and cash equivalents comprise cash on hand, demand deposits and highly liquid investments with an original maturity of up to three months that are readily convertible into known amounts of cash and that are subject to an insignificant risk of changes in value. As at 31 March (Ł millions) 2022 2021 2020 Cash and cash equivalents 4,223 3,778 2,271 Cash and cash equivalents includes Ł33 million (2021, 2020: Łnil) which is not available for use by the wider group. 22 Allowances for trade and other receivables Year ended 31 March (Ł millions) 2022 2021 2020 At beginning of year 7 11 12 Charged during the year 4 6 11 Receivables written off during the year as uncollectable (6) (1) (4) Unused amounts reversed (1) (9) (8) At end of year 4 7 11 Trade receivables with a contractual amount of Ł1 million (2021: Łnil, 2020: Ł2 million) that were written off during the year are still subject to enforcement activity. Trade receivables pledged as collateral against borrowings are disclosed in note 25.

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23 Inventories Inventories are valued at the lower of cost and net realisable Inventories include vehicles sold subject to repurchase value. Costs of raw materials and consumables are ascertained arrangements. These vehicles are carried at cost to the Group on a first-in, first-out basis. Costs, including fixed and variable and are amortised in changes in stocks and work-in-progress to production overheads, are allocated to work-in-progress and their residual values (i.e. estimated second-hand sale value) over finished goods, determined on a full absorption cost basis. Net the term of the arrangement. realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion and selling expenses. As at 31 March (£ millions) 2022 2021 2020 Raw materials and consumables 135 110 104 Work-in-progress 488 371 388 Finished goods 2,129 2,525 2,977 Inventory basis adjustment 29 16 (1) Total inventories 2,781 3,022 3,468 Inventories of finished goods include £361 million (2021: £406 sales, employee costs, depreciation and production overheads million, 2020: £466 million) relating to vehicles sold to rental recognised within other expenses. car companies, fleet customers and others with guaranteed repurchase arrangements. During the year, the Group recorded an inventory write-down expense of £11 million (2021: £16 million, 2020: £28 million). Cost of inventories (comprising the cost of purchased products The write-down is included in “Material and other cost of sales”. and the costs of conversion) recognised as an expense during the year amounted to £12,499 million (2021: £13,917 million, Inventories pledged as collateral against borrowings are disclosed 2020: £16,902 million), including material and other cost of in note 25. 24 Accounts payable As at 31 March (£ millions) 2022 2021 2020 Trade payables 3,616 4,238 3,723 Liabilities to employees 168 171 143 Liabilities for expenses 929 1,392 1,950 Capital creditors 431 507 683 Total accounts payable 5,144 6,308 6,499 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 103

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FINANCIAL STATEMENTS 25 Interest-bearing loans and borrowings As at 31 March (Ł millions) 2022 2021 2020 Short-term borrowings Bank loans 599 572 -Current portion of long-term EURO MTF listed debt 779 399 299 Current portion of long-term loans 401 235 225 Other secured — 2 Total short-term borrowings 1,779 1,206 526 Long-term borrowings EURO MTF listed debt 3,953 3,921 3,562 Bank loans 1,260 1,037 1,241 Other unsecured 35 14 14 Total long-term borrowings 5,248 4,972 4,817 Lease obligations 570 519 541 Total debt 7,597 6,697 5,884 Euro MTF listed debt Details of the tranches of bonds repaid in the year ended 31 The bonds are listed on the Luxembourg Stock Exchange March 2021 are as follows: multilateral trading facility (“EURO MTF”) market. Details of the tranches of the bonds outstanding at 31 March 2022 are as • Ł300 million Senior Notes due 2021 at a coupon of 2.750 follows: per cent per annum – issued January 2017 • $500 million Senior Notes due 2023 at a coupon of 5.625 Details of the tranches of the bonds repaid in the year ended 31 per cent per annum – issued January 2013 March 2020 as follows: • Ł400 million Senior Notes due 2023 at a coupon of 3.875 per cent per annum – issued February 2015 • $500 million Senior Notes due 2019 at a coupon of 4.250 • €650 million Senior Notes due 2024 at a coupon of 2.200 per cent per annum – issued October 2014 per cent per annum – issued January 2017 • $500 million Senior Notes due 2020 at a coupon of 3.500 • $500 million Senior Notes due 2027 at a coupon of 4.500 per cent per annum – issued March 2015 per cent per annum – issued October 2017 • €500 million Senior Notes due 2026 at a coupon of 4.500 Syndicated loan per cent per annum – issued September 2018 In October 2018, a $1 billion syndicate loan was issued with a • €500 million Senior Notes due 2024 at a coupon of 5.875 coupon rate of LIBOR + 1.900 per cent per annum, due in the per cent per annum – issued November 2019 following tranches: • €500 million Senior Notes due 2026 at a coupon of 6.875 per cent per annum – issued November 2019 • $199 million due October 2022 • $700 million Senior Notes due 2025 at a coupon of 7.750 • $798 million due January 2025 per cent per annum – issued October 2020 • $650 million Senior Notes due 2028 at a coupon of 5.875 $3 million of this loan was reaid during the year ended 31 March per cent per annum – issued December 2020 2022. • $500 million Senior Notes due 2029 at a coupon of 5.500 per cent per annum – issued July 2021 The contractual cash flows of interest-bearing debt (excluding • €500 million Senior Notes due 2028 at a coupon of 4.500 leases) are set out on the next page, including estimated interest per cent per annum – issued July 2021 payments and assuming the debt will be repaid at the maturity date. Details of the tranches of the bonds repaid in the year ended 31 March 2022 are as follows: • Ł400 million Senior Notes due 2022 at a coupon of 5.000 per cent per annum – issued January 2014

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As at 31 March (Ł millions) 2022 2021 2020 Due in 1 year or less 2,104 1,492 765 2nd and 3rd years 2,508 1,270 2,039 4th and 5th years 1,899 3,198 2,145 More than 5 years 1,800 1,383 1,441 Total contractual cash flows 8,311 7,343 6,390 Factored receivables facility factoring facility in China of which Łnil is drawn down (2021: Ł19 million, 2020: Łnil). During the year ended 31 March 2021, the Group extended its factored receivables facility to a $500 million facility ending Undrawn Facilities March 2023. Under the terms of the facility, the Group de-recognises factored receivables in accordance with IFRS 9 as As at 31 March 2022, the Group has a fully undrawn revolving there are no recourse arrangements. credit facility of Ł2,015 million (2021, 2020: Ł1,935 million). There is a reduction in the RCF facility to Ł1,500 million from UK export finance facility July 2022. The facility will be available until March 2024 and includes a covenant requiring the Group to maintain a minimum During the year ended 31 March 2020, the Group entered and liquidity of Ł1 billion. drew down in full a Ł625 million five-year amortising loan facility backed by a Ł500 million guarantee from UK Export Finance. The Group’s fleet buyback facility matured in December 2021 During the year ended 31 March 2022, the Group repaid Ł125 and had Ł3 million undrawn on this facility as at 31 March 2021 million (2021: Ł125 million, 2020: Ł52 million) of this loan. (Łnil at 31 March 2020). During the year ended 31 March 2022, During the year ended 31 March 2022, the Group entered and the Group repaid the Ł110 million drawn on this facility. drew down in full an additional Ł625 million five-year amortising loan facility. The group repaid Ł31 million of this additional facility Collateral pledged against borrowings in the year ended 31 March 2022 (2021, 2020: Łnil). These loans include a covenant requiring the Group to maintain a minimum Inventory of Łnil (2021: Ł138 million, 2020: Ł127 million), trade liquidity of Ł1 billion. receivables with a carrying amount of Łnil (2021: Ł19 million, 2020: Łnil) and other financial assets with a carrying of Ł13 China borrowings million (2021: Ł13 million, 2020: Łnil) are pledged as collateral/ security against borrowings. During the year ended 31 March 2021, the Group entered into a 3-year RMB 5 billion syndicated revolving loan facility subject to an annual confirmatory review. The facility is fully drawn at 31 March 2022 and is equivalent to Ł599 million at 31 March 2022 exchange rates. In addition the Group entered into a parts Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 105

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FINANCIAL STATEMENTS 26 Other financial liabilities As at 31 March (£ millions) 2022 2021 2020 Current Lease obligations 62 65 73 Interest accrued 95 84 65 Derivative financial instruments 445 238 453 Liability for vehicles sold under a repurchase arrangement 267 359 479 Other 1—3 Total current other financial liabilities 870 746 1,073 Non-current Lease obligations 508 454 468 Derivative financial instruments 338 169 310 Other 25 2—Total non-current other financial liabilities 871 625 778 27 Provisions A provision is recognised if, as a result of a past event, the Provisions are held for product warranty, legal and product Group has a present legal or constructive obligation that can be liabilities, residual risks, environmental liabilities, other employee estimated reliably, and it is probable that an outflow of economic benefit obligations and restructuring. benefits will be required to settle the obligation. When the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. As at 31 March (£ millions) 2022 2021 2020 Current Product warranty 604 643 731 Legal and product liability 252 198 124 Provisions for residual risk 12 24 61 Provision for environmental liability 3 3 6 Other employee benefits obligations—10 7 Restructuring 118 283 15 Total current provisions 989 1,161 944 Non-current Product warranty 1,026 1,042 1,155 Legal and product liability 40 71 54 Provision for residual risk 19 42 114 Provision for environmental liability 23 23 17 Other employee benefits obligations 4 10 15 Total non-current provisions 1,112 1,188 1,355

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Year ended 31 March 2022 Product Legal and Residual Environmental Other employee (Ł millions) warranty product liability risk liability benefits obliga- Restructuring Total tions Opening balance 1,685 269 66 26 20 283 2,349 Provisions made during the year 745 259 4 3 3 82 1,096 Provisions used during the year (719) (134) (1) (1) (14) (220) (1,089) Unused amounts reversed in the year (91) (105) (38) (2) (4) (23) (263) Impact of unwind of discounting 10 — ——10 Foreign currency translation—3 — (1) (4) (2) Closing balance 1,630 292 31 26 4 118 2,101 Product warranty provision The Group notes that changes in the automotive environment regarding the increasing impact of battery electric vehicles The Group provides product warranties on all new vehicle sales presents its own significant challenges, particularly due to the in respect of manufacturing defects, which become apparent lack of maturity and historical data available at this time to in the stipulated policy period dependent on the market in help inform estimates for future warranty claims, as well as which the vehicle purchase occurred. The estimated liability for any associated recoveries from suppliers due to such claims. product warranty is recognised when products are sold or when The Group offers warranties of up to eight years on batteries new warranty programmes are initiated. in electric vehicles. The related provisions are made with the Group’s best estimate at this time to settle such obligations Provisions are recognised for the costs of repairing manufacturing in the future, but will be required to be continually refined as defects, recall campaigns, customer goodwill (representing the sufficient, real-world data becomes available. Group’s constructive obligation to its customers when managing those warranty claims) and the Group’s other obligations under Legal and product liability provision the warranty. A legal and product liability provision is maintained in respect of Assumptions are made on the type and extent of future warranty compliance with regulations and known litigations that impact claims based on experience of the frequency and extent of the Group. The provision primarily relates to motor accident vehicle faults and defects historically. The estimates also include claims, consumer complaints, dealer terminations, employment assumptions on the amounts of potential repair costs per vehicle cases, personal injury claims and compliance with emission and the effects of possible time or mileage limits and are regularly regulations. The timing of outflows will vary as and when claims adjusted to reflect new information. The timing of outflows will are received and settled, which is not known with certainty. vary as and when a warranty claim will arise. Depending on the relevant jurisdiction, the Group recognises The Group’s calculation methodology uses historical data provisions for non-compliance with legal emissions requirements. corrected for experience as information becomes available as The measurement of the provision considers the sales volume well as individual campaign assumptions (such as scope, uptake in that jurisdiction and the fee or cost per the applicable rates and repair costs). This can lead to changes in the carrying legislation. The Group aims to mitigate non-compliance risk by value of provisions as assumptions are updated over the life of purchasing emission credits or participation in emission pools. each warranty; however there are no individual assumptions that The associated provision is re-measured to consider any such can be reasonably expected to move over the next financial year mitigations. Included within “unused amounts reversed in the to such a degree that it would result in a material adjustment to year” is Ł51 million related to the expected costs of compliance the warranty provision. with emission regulations, and Ł42 million related to potential costs associated with the Group’s battery end-of-life obligations. The discount on the warranty provision is calculated using a risk-free discount rate as the risks specific to the liability, such as Residual risk provision inflation, are included in the base calculation. In certain markets, the Group is responsible for the residual risk The Group also has back-to-back contractual arrangements arising on vehicles sold by retailers under leasing arrangements. with its suppliers in the event that a vehicle fault is proven The provision is based on the latest available market expectations to be a supplier’s fault. Estimates are made of the expected of future residual value trends. The timing of the outflows will be reimbursement claims based upon historical levels of recoveries at the end of the lease arrangements, being typically up to three by supplier, adjusted for inflation and applied to the population years. of vehicles under warranty at the balance sheet date. Supplier reimbursement claims are presented as separate assets within These assessments were performed with reference to both “Other financial assets” in note 17. Supplier recoveries are internal and external market inputs. recognised only when the Group considers there to be virtual certainty over the reimbursement, which also requires historical evidence to support. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 107

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FINANCIAL STATEMENTS Environmental liability provision programmes. Amounts are also included in relation to legal and constructive obligations made to third parties in connection with This provision relates to various environmental remediation costs cancellations under the group’s Reimagine strategy. such as asbestos removal and land clean-up. The timing of when these costs will be incurred is not known with certainty. The estimated liability for restructuring activities is recognised when the Group has reason to believe there is a legal or Other employee benefit obligations constructive obligation arising from restructuring actions taken. This provision relates to the LTIP scheme for certain employees The amount provided at the reporting date is calculated based and other amounts payable to employees. on currently available facts and certain estimates for those obligations (see note 4, Exceptional items). These estimates are Restructuring provision established using historical experience based on the settlement costs for similar liabilities, with proxies being used where no The restructuring provision includes amounts for third party direct comparison exists. obligations arising from Group restructuring programmes. This includes amounts payable to employees following the The amounts and timing of outflows will vary as and when announcement of the Group’s Reimagine strategy in the year restructuring obligations are progressed with third parties. ending 31 March 2021 as well as other Group restructuring    28 Other liabilities As at 31 March (Ł millions) 2022 2021 2020 Current Liabilities for advances received 122 61 50 Ongoing service obligations 286 315 324 VAT 95 122 169 Other taxes payable 161 120 148 Other 10 20 25 Total current other liabilities 674 638 716 Non-current Ongoing service obligations 395 451 522 Other 9 10 11 Total non-current other liabilities 404 461 533 29 Capital and reserves The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. As at 31 March (Ł millions) 2022 2021 2020 Authorised, called up and fully paid 1,500,642,163 ordinary shares of Ł1 each 1,501 1,501 1,501 Total ordinary share capital 1,501 1,501 1,501 The capital redemption reserve of Ł167 million (2021, 2020: Ł167 million) was created in March 2011 on the cancellation of share capital.    

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30 Other reserves The movement of reserves is as follows: Translation Hedging Cost of Retained Total other (Ł millions) reserve reserve hedging earnings reserves reserve Balance at 1 April 2021 (357) 136 1 3,806 3,586 Loss for the year ——(818) (818) Remeasurement of defined benefit obligation ——707 707 (Loss)/gain on effective cash flow hedges—(842) 31—(811) Income tax related to items recognised in other comprehensive income—197 (8) (92) 97 Cash flow hedges reclassified to profit and loss—(67) (18)—(85) Income tax related to items reclassified to profit or loss—13 3—16 Amounts removed from hedge reserve and recognised in inventory—134 13—147 Income tax related to amounts removed from hedge reserve and recognised in inventory—(25) (3)—(28) Currency translation differences 24 ——24 Balance at 31 March 2022 (333) (454) 19 3,603 2,835 Of which: Amounts related to continuing hedges n/a (444) 19 n/a (425) Amounts related to discontinued hedges n/a (10)—n/a (10) Balance at 1 April 2020 (316) (286) (33) 5,515 4,880 Loss for the year ——(1,101) (1,101) Remeasurement of defined benefit obligation ——(751) (751) Gain on effective cash flow hedges—400 37—437 Income tax related to items recognised in other comprehensive income—(76) (6) 143 61 Cash flow hedges reclassified to profit and loss—116 (7)—109 Income tax related to items reclassified to profit or loss—(22) 1—(21) Amounts removed from hedge reserve and recognised in inventory—5 11—16 Income tax related to amounts removed from hedge reserve and recognised in inventory—(1) (2)—(3) Currency translation differences (41) ——(41) Balance at 31 March 2021 (357) 136 1 3,806 3,586 Of which: Amounts related to continuing hedges n/a 129 1 n/a 130 Amounts related to discontinued hedges n/a 7—n/a 7 Balance at 1 April 2019 (337) (506) (33) 5,181 4,305 Adjustment on initial application of IFRS 16 (net of tax) ——(23) (23) Adjusted balance at 1 April 2019 (337) (506) (33) 5,158 4,282 Loss for the year ——(471) (471) Remeasurement of defined benefit obligation ——983 983 Loss on effective cash flow hedges—(334) — (334) Gain/(loss) on effective cash flow hedges of inventory—82 (7)—75 Income tax related to items recognised in other comprehensive income—49 1 (155) (105) Cash flow hedges reclassified to profit and loss—571 (8)—563 Income tax related to items reclassified to profit or loss—(109) 2—(107) Amounts removed from hedge reserve and recognised in inventory—(48) 15—(33) Income tax related to amounts removed from hedge reserve and recog— 9 (3)—6 nised in inventory Currency translation differences 21 ——21 Balance at 31 March 2020 (316) (286) (33) 5,515 4,880 Of which: Amounts related to continuing hedges n/a (249) (32) n/a (281) Amounts related to discontinued hedges n/a (37) (1) n/a (38) Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 109

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FINANCIAL STATEMENTS 31 Dividends During the year ended 31 March 2022 no ordinary share dividends were proposed or paid (2021, 2020: Łnil). 32 Employee benefits Pension Schemes Past service cost, including curtailment gains and losses, The Group operates several defined benefit (‘DB’) pension is generally recognised in profit or loss in the period of plan plans; these include two large and one smaller defined benefit amendment. Net interest is calculated by applying the discount plan in the UK. The UK DB plans are administered by a separate rate at the beginning of the period to the net defined benefit trustee, the assets of the plans are generally held in separate liability, adjusted for expected cashflows during the period. From funds selected and overseen by the trustee. These plans were the year ending 31 March 2020, at the point a past service cost contracted out of the state second pension (S2P) scheme until is incurred, re-measurement of the income statement cost is 5 April 2016. The plans provide benefits for members including a considered and will be re-calculated if there is a material change. monthly pension after retirement based on salary and service as set out in the rules of each plan. The Group presents these defined benefit costs within “Employee costs” in the consolidated income statement (see note 7). Contributions to the plans by the Group take into consideration the results of actuarial valuations. Separate defined contribution plans are available to all other employees of the Group. Costs in respect of these plans are The UK defined benefit plans were closed to new joiners in charged to the consolidated income statement as incurred. April 2010. The Group also operates a number of small benefit arrangements worldwide (the liabilities for these amount to Post-retirement Medicare scheme around 0.5% of the Group total). Under these unfunded schemes, employees of some subsidiaries receive medical benefits subject to certain limits of amount, For defined benefit plans, the cost of providing benefits is periods after retirement and types of benefits, depending on determined using the projected unit credit method, with actuarial their grade and location at the time of retirement. Employees updates being carried out at the end of each reporting period. separated from the Group as part of an early separation scheme, on medical grounds or due to permanent disablement, may Defined benefit costs are split into four categories: also be covered under the scheme. The applicable subsidiaries (and therefore, the Group) account for the liability for the • Current service cost, past service cost and gains and losses post-retirement medical scheme based on an annual actuarial on curtailments and settlements; valuation where appropriate. • Net interest cost; Actuarial gains and losses Actuarial gains and losses relating to retirement benefit plans • Administrative expenses; and are recognised in the consolidated statement of comprehensive income in the year in which they arise. • Remeasurements. Remeasurement comprising actuarial gains and losses, the effect of the asset ceiling and the return on plan assets (excluding interest) is recognised immediately in the consolidated balance sheet with a charge or credit to the consolidated statement of comprehensive income in the period in which they occur. Remeasurement recorded in the statement of comprehensive income is not recycled.

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Measurement date liabilities, although this is expected to be partially offset by an The measurement date of all retirement plans is 31 March. increase in the value of the schemes’ assets, specifically the bond holdings and interest rate hedging instruments. The trustee of the pension schemes is required by law to act in the interest of the members and of all relevant stakeholders in the Inflation risk schemes and is responsible for the investment policy with regard to the assets of the schemes and all other governance matters. Some of the Group’s pension obligations are linked to inflation, The board of the trustee must be composed of representatives and higher inflation will lead to higher liabilities (although, in most of the Group and scheme participants in accordance with each cases, caps on the level of inflationary increases are in place to scheme’s regulations. protect the schemes against high inflation). As noted above, the schemes hold a significant proportion of assets in index-linked Through its defined benefit pension schemes, the Group is gilts, together with other inflation hedging instruments and also exposed to a number of risks, the most significant of which are assets that are more closely correlated with inflation. However, detailed below. an increase in inflation may still create a deficit or increase an existing deficit to some degree. Asset volatility Life expectancy The schemes’ liabilities are calculated using a discount rate set with reference to corporate bond yields; if the schemes’ assets The majority of the schemes’ obligations are to provide benefits underperform against these corporate bonds, this will create or for the life of the member, so increases in life expectancy will increase a deficit. The defined benefit schemes hold a significant result in an increase in the schemes’ liabilities. This is particularly proportion of equity-type assets, which are expected to significant in the UK defined benefit schemes, where inflationary outperform corporate bonds in the long-term although introduce increases result in higher sensitivity to changes in life expectancy. volatility and risk in the short-term. The following tables set out the disclosures pertaining to the The UK schemes hold a substantial level of index-linked gilts and retirement benefit amounts recognised in the consolidated other inflation and interest rate hedging instruments in order to financial statements prepared in accordance with IAS 19: reduce the volatility of assets compared to the liability value, although these will lead to asset value volatility. As the schemes mature, the Group intends to reduce the level of investment risk by investing more in assets for which expected income is a better match for the expected benefit outgo. However, the Group believes that due to the long-term nature of the schemes’ liabilities and the strength of the supporting group, a level of continuing equity-type investments is currently an appropriate element of the Group’s long-term strategy to manage the schemes efficiently. Changes in bond yields A decrease in corporate bond yields will increase the schemes’ Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 111

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FINANCIAL STATEMENTS Change in present value of defined benefit obligation Year ended 31 March (Ł millions) 2022 2021 2020 Defined benefit obligation at beginning of year 8,432 7,788 8,648 Current service cost 116 131 133 Past service cost—16 4 Interest expense 176 166 203 Actuarial losses/(gains) arising from:    Changes in demographic assumptions 10 (21) 7    Changes in financial assumptions (705) 869 (526)    Experience adjustments (3) (75) (139) Exchange differences on foreign schemes—(2) 1 Member contributions 2 1 2 Benefits paid (506) (441) (545) Defined benefit obligation at end of year 7,522 8,432 7,788 Change in present value of scheme assets Year ended 31 March (Ł millions) 2022 2021 2020 Fair value of schemes’ assets at beginning of year 8,045 8,168 7,981 Interest income 170 170 190 Remeasurement gain on the return of plan assets, excluding amounts included in interest income 9 22 325 Administrative expenses (27) (22) (16) Exchange differences on foreign schemes—(1) -Employer contributions 238 148 231 Member contributions 2 1 2 Benefits paid (506) (441) (545) Fair value of schemes’ assets at end of year 7,931 8,045 8,168 The actual return on the schemes’ assets for the year ended 31 March 2022 was Ł179 million (2021: Ł192 million, 2020: Ł515 million). Amounts recognised in the consolidated income statement consist of: Year ended 31 March (Ł millions) 2022 2021 2020 Current service cost 116 131 133 Past service cost—16 4 Administrative expenses 27 22 16 Net interest cost (including onerous obligations) 6 (4) 13 Components of defined benefit cost recognised in the consolidated 149 165 166 income statement    

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Amounts recognised in the consolidated statement of comprehensive income consist of: Year ended 31 March (Ł millions) 2022 2021 2020 Actuarial (losses)/gains arising from:    Changes in demographic assumptions (10) 21 (7)    Changes in financial assumptions 705 (869) 526    Experience adjustments 3 75 139 Remeasurement gain on the return of schemes’ assets, excluding amounts 9 22 325 included in interest income Remeasurement gain/(loss) on net defined benefit obligation 707 (751) 983 Amounts recognised in the consolidated balance sheet consist of: As at 31 March (Ł millions) 2022 2021 2020 Present value of unfunded defined benefit obligations (2) (2) (2) Present value of funded defined benefit obligations (7,520) (8,430) (7,786) Fair value of schemes’ assets 7,931 8,045 8,168 Net retirement benefit obligation 409 (387) 380 Presented as non-current asset 434—408 Presented as non-current liability (25) (387) (28) The most recent valuations of the defined benefit schemes for of CPIH from 2030 (following its consultation on RPI Reform). As accounting purposes were carried out at 31 March 2022 by a a result of this and changing market conditions, the gap between qualified independent actuary. For the UK schemes this is based RPI and CPI has been updated to reflect RPI reform by having a on membership data as at 31 March 2021 for the JPP & LRPS gap of 1.2% p.a. up to 2030 and no gap thereafter. In addition and 5 April 2018 for the smaller JEPP. The present value of the the inflation risk premium (IRP) has been updated from an IRP of defined benefit liability, and the related current service cost and 0.2% p.a. up to 2030 and 0.5% post 2030 to an IRP of 0.3% p.a. past service cost, were measured using the projected unit credit up to 2030 and 0.5% post 2030, reflecting market conditions at method. The asset valuations are taken from the asset custodian the 31 March 2022 year end. for each scheme together with the balance of the Trustee bank accounts. The principal assumptions used in accounting for the pension schemes are set out below: In November 2020 the UK government announced that the calculation of RPI would be amended to mirror the calculation Year ended 31 March 2022 2021 2020 Discount rate 2.8% 2.1% 2.4% Expected rate of increase in benefit revaluation of covered employees 2.2% 2.1% 2.0% RPI inflation rate 3.5% 3.1% 2.6% Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 113

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FINANCIAL STATEMENTS For the valuation at 31 March 2022, the mortality assumptions • For the Jaguar Executive Pension Plan, an average scaling used are the Self-Administered Pension Schemes (‘SAPS’) factor of 94 per cent has been used for male members and mortality base table, S2PxA tables (“Light” tables for members an average scaling factor of 84 per cent has been used for of the Jaguar Executive Pension Plan). female members. • For the Jaguar Pension Plan, scaling factors of 101 per cent For the valuation at 31 March 2020, the mortality assumptions to 115 per cent have been used for male members and used were the SAPS mortality base table, S2PxA tables (“Light” scaling factors of 103 per cent to 118 per cent have been tables for members of the Jaguar Executive Pension Plan). used for female members. • For the Jaguar Pension Plan, scaling factors of 111 per cent • For the Land Rover Pension Scheme, scaling factors of 105 to 117 per cent have been used for male members and per cent to 117 per cent have been used for male members scaling factors of 101 per cent to 112 per cent have been and scaling factors of 100 per cent to 116 per cent have used for female members. been used for female members. • For the Land Rover Pension Scheme, scaling factors of 107 • For the Jaguar Executive Pension Plan, scaling factors of 93 per cent to 111 per cent have been used for male members per cent to 97 per cent have been used for male members and scaling factors of 101 per cent to 109 per cent have and scaling factors of 91 per cent to 96 per cent have been been used for female members. used for female members. • For the Jaguar Executive Pension Plan, an average scaling For the valuation at 31 March 2021, the mortality assumptions factor of 94 per cent has been used for male members and used were the SAPS mortality base table, S2PxA tables (“Light” an average scaling factor of 84 per cent has been used for tables for members of the Jaguar Executive Pension Plan). female members. • For the Jaguar Pension Plan, scaling factors of 111 per cent For the 2022 year end calculations there is an allowance for to 117 per cent have been used for male members and future improvements in line with the CMI (2021) projections and scaling factors of 101 per cent to 112 per cent have been an allowance for long-term improvements of 1.25 per cent per used for female members. annum and a smoothing parameter of 7.5 (2021: CMI (2020) projections with 1.25 per cent per annum improvements and • For the Land Rover Pension Scheme, scaling factors of 107 a smoothing parameter of 7.5, 2020: CMI (2019) projections per cent to 111 per cent have been used for male members with 1.25 per cent per annum improvements and a smoothing and scaling factors of 101 per cent to 109 per cent have parameter of 7.5). been used for female members. The assumed life expectancies on retirement at age 65 are: As at 31 March (years) 2022 2021 2020 Retiring today:    Males 21.6 21.0 21.0    Females 23.8 23.3 23.2 Retiring in 20 years:    Males 23.0 22.4 22.5    Females 25.7 25.2 25.2

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A past service cost of Ł9 million was recognised in the year The sensitivity analysis below is based on a change in an ended 31 March 2021 following a further High Court ruling, assumption while holding all other assumptions constant. In published on 20 November 2020, that provided clarification practice, this is unlikely to occur, and changes in some of the on the obligations of pension plan trustees to equalise past assumptions may be correlated. When calculating the sensitivity transfer values allowing for the effect of unequal Guaranteed of the defined benefit obligation to significant actuarial Minimum Pensions (‘GMP’) between 17 May 1990 and 5 April assumptions, the same method (present value of the defined 1997 (“GMP equalisation”). The Group had previously recognised benefit obligation calculated with the projected unit credit a past service cost of Ł17 million in the year ended 31 March method at the end of the reporting period) has been applied 2019, following the High Court ruling in 2018 in respect of GMP as when calculating the pension liability recognised within the equalisation, and has retained this allowance at 31 March 2022 consolidated balance sheet. but adjusted for the passage of time and to reflect the estimated impact of changes in market conditions. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous periods. A further past service cost of Ł7 million was also recognised in the year ended 31 March 2021. This reflected benefit improvements for certain members as part of the Group restructuring programme that commenced in the year ended 31 March 2021. A past service cost of Ł4 million was recognised in the year ended 31 March 2020. This reflected benefit improvements for certain members as part of the Group restructuring programme that commenced in the year ended 31 March 2019. All past service costs are recognised in ‘exceptional items’ in the consolidated income statement. See Note 4 for further information. Assumption Change in assumption Impact on scheme liabilities Impact on service cost Discount rate Increase/decrease by 0.25% Decrease/increase by c.Ł341 million Decrease/increase by Ł6 million Inflation rate Increase/decrease by 0.25% Increase/decrease by c.Ł176 million Increase/decrease by Ł1 million Increase/decrease in life expectancy Mortality Increase/decrease by c.Ł267 million Increase/decrease by Ł3 million by 1 year Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 115    

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FINANCIAL STATEMENTS The fair value of schemes’ assets is represented by the following major categories: As at 31 March 2022 2021 2020 (Ł millions) Quoted Unquo- Total % Quoted Unquo- Total % Quo- Unquo- Total % ted ted* ted** ted Equity instruments Information technology—127 127 2%—134 135 2% 73 51 124 1% Energy—18 18 — 11 11—6 4 10 -Manufacturing—96 96 1%—75 75 1% 41 29 70 1% Financials—41 41 1%—48 48 1% 27 18 45 1% Other—173 173 2%—267 267 3% 147 102 249 3% —455 455 6%—535 535 7% 294 204 498 6% Debt instruments Government bonds 1,813 65 1,878 23% 1,625 88 1,712 21% 1,841 103 1,944 24% Corporate bonds (investment grade) 1,149 310 1,459 18% 1,340 243 1,583 20% 1,131 462 1,593 19% Corporate bonds (Non investment grade)—973 973 12%—1,061 1,061 13%—750 750 9% 2,962 1,348 4,310 53% 2,965 1,392 4,357 54% 2,972 1,315 4,287 52% Property funds UK—307 307 4%—304 304 4%—273 273 3% Other—240 240 3%—201 201 3%—239 239 3% —547 547 7%—505 505 7%—512 512 6% Cash and cash equivalents 75 363 438 6% 74 192 265 3% 51 627 678 8% Other Hedge funds—506 506 6%—496 496 6%—475 475 6% Private markets—998 998 13%—824 824 10%—562 562 7% Alternatives—462 462 6%—641 641 8%—594 594 7% —1,966 1,966 25%—1,961 1,961 24%—1,631 1,631 20% Derivatives Foreign exchange contracts—(35) (35) — 15 15 — (35) (35) -Interest rate and inflation swaps—250 250 3%—361 361 4%—545 545 7% Equity protection derivatives — ——48 48 1%—52 52 1%—215 215 3%—424 424 5%—562 562 8% Total 3,037 4,894 7,931 100% 3,039 5,009 8,048 100% 3,317 4,851 8,168 100% *The comparative has been restated to reflect reclassification to unquoted for equity instruments. **Restated following a review of the measurement and presentation requirements for unquoted assets. As at 31 March 2022, the schemes held Gilt Repos. The net value of an asset. In assigning the level JLR balances consistency of these transactions is included in the value of government between asset holdings, consistency from year to year and bonds in the table above. The gross value of the funding obligation manager/other assessments. JLR designates level 1 to direct for the Repo transactions is Ł1,462 million at 31 March 2022 holdings of liquid assets where an active market exists. (2021: Ł2,057 million, 2020: Ł2,639 million). JLR assigns an accounting level (1, 2 or 3) to asset holdings in order to reflect the level of judgement involved in the valuation    

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Custodian accounts where underlying assets are regularly traded 29 April 2020. or where comparable assets have traded values are designated level 2, for example derivatives (including net value of swaps) The average duration of the benefit obligations at 31 March and some property holdings. Assets which are not designated as 2022 is 17.5 years (2021, 2020: 19.0 years). level 1 or 2 are designated as level 3. Level 1 assets are reported as quoted, level 2 and 3 unquoted.    Repo obligations are noted The expected net periodic pension cost for the year ended 31 separately. March 2023 is expected to be Ł113 million. The Group expects to pay Ł117 million to its defined benefit schemes, in total, for Private Equity holdings have been measured using the most the year ended 31 March 2023 (excluding member contributions recent valuations, adjusted for cash and currency movements through salary sacrifice). between the last valuation date and 31 March 2022. Given the movements in listed equity markets, the valuation of Private Defined contribution schemes Equity holdings may vary significantly. The value of the Private Equity holdings in the JLR UK Plans included above is Ł661 The Group’s contribution to defined contribution schemes for the million as at 31 March 2022 (2021: Ł453 million, 2020: Ł342 year ended 31 March 2022 was Ł83 million (2021, 2020: Ł86 million). million). Jaguar Land Rover contributes towards the UK defined benefit 33 Commitments and contingencies schemes. The 5 April 2018 statutory funding valuations were completed in December 2018. As a result of these valuations In the normal course of business, the Group faces claims and it is intended to eliminate the pension scheme funding deficits assertions by various parties. The Group assesses such claims over the 10 years to 31 March 2028. JLR has taken legal advice and assertions and monitors the legal environment on an ongoing considering the documentation of the UK schemes and the basis, with the assistance of external legal counsel wherever regulatory environment. This confirmed the recoverability of necessary. The Group records a liability for any claims where a any surplus in the scheme and JLR has based its accounting potential loss is probable and capable of being estimated and judgement on this advice. discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, In line with the schedule of contributions agreed following the the Group provides disclosure in the consolidated financial 2018 statutory funding valuations, the current ongoing Group statements but does not record a liability unless the loss contributiation rate for defined benefit accrual is c.21 per cent becomes probable. Such potential losses may be of an uncertain of pensionable salaries in the UK. The 2021 statutory funding timing and/or amount. valuations are expected to be completed by 30 June 2022.                The following is a description of claims and contingencies where Deficit contributions are paid in line with the schedule of a potential loss is possible, but not probable. Management contributions at a rate of Ł60 million per year until 31 March believes that none of the contingencies described below, either 2024 followed by Ł25 million per year until 31 March 2028. individually or in aggregate, would have a material adverse effect Contributions previously due for April, May and June 2020 on the Group’s financial condition, results of operations or cash have been re-spread over the year ended 31 March 2022. This flows. agreement is reflected in the Schedule of Contributions dated As at 31 March (Ł millions) 2022 2021 2020 Litigation and product related matters 25 23 40 Other taxes and duties 75 50 44 Commitments: • Plant and equipment 735 862 1,217 • Intangible assets 15 16 14 • Other 470 270 376 Pledged as collateral/security against the borrowings and commitments: • Inventory—138 127 • Trade receivables—19—• Other financial assets 13 13—Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 117

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FINANCIAL STATEMENTS Litigation and product related matters Joint venture The Group is involved in legal proceedings, both as plaintiff and Stipulated within the joint venture agreement for Chery Jaguar as defendant. There are claims and potential claims against the Land Rover Automotive Company Ltd., and subsequently Group which management has not recognised, as settlement amended by a change to the Articles of Association of Chery is not considered probable. These claims and potential claims Jaguar Land Rover Automotive Company Ltd. is a commitment pertain to motor accident claims, consumer complaints, for the Group to contribute a total of CNY 5,000 million of capital. employment and dealership arrangements, replacement of parts Of this amount, CNY 3,475 million has been contributed as at 31 of vehicles and/or compensation for deficiency in the services by March 2022. The outstanding commitment of CNY 1,525 million the Group or its dealers. translates to Ł183 million at the 31 March 2022 exchange rate. The Group has provided for the estimated cost of repair The Group’s share of capital commitments of its joint venture following the passenger safety airbag issue in the United States, at 31 March 2022 is Ł16 million (2021: Ł42 million, 2020: Ł69 China, Canada, Korea, Taiwan, Australia and Japan. The Group million) and contingent liabilities of its joint venture 31 March recognises that there is a potential risk of further recalls in the 2022 is Łnil (2021, 2020: Łnil). future and considers such events on a case-by-case basis as the relevant facts and circumstances materialise, provided it can 34 Capital management reliably estimate the amount and timing of any potential future costs associated with this warranty issue. The Group’s objectives when managing capital are to ensure the going concern operation of all subsidiary companies within Other taxes and duties the Group and to maintain an efficient capital structure to support ongoing and future operations of the Group and to meet Contingencies and commitments include tax contingent liabilities shareholder expectations. which mainly relate to tax audits and tax litigation claims.                The Group issues debt, primarily in the form of bonds, to meet Commitments anticipated funding requirements and maintain sufficient liquidity. The Group also maintains certain undrawn committed The Group has entered into various contracts with vendors credit facilities to provide additional liquidity. These borrowings, and contractors for the acquisition of plant, equipment and together with cash generated from operations, are loaned intangible assets; and various civil contracts of a capital nature. internally or contributed as equity to certain subsidiaries as Commitments and contingencies also includes other contingent required. Surplus cash in subsidiaries is pooled (where practicable) liabilities, the timing of any outflow will vary as and when claims and invested to satisfy security, liquidity and yield requirements. are received and settled, which is not known with certainty. The capital structure and funding requirements are regularly The remaining financial commitments, in particular the purchase monitored by the JLR plc Board to ensure sufficient liquidity commitments and guarantees, are of a magnitude typical for the is maintained by the Group. All debt issuance and capital industry. distributions are approved by the JLR plc Board. As at 31 March (Ł millions) 2022 2021 2020 Short-term debt 1,841 1,271 599 Long-term debt 5,756 5,426 5,285 Total debt* 7,597 6,697 5,884 Equity attributable to shareholders 4,503 5,254 6,548 Total capital 12,100 11,951 12,432 *Total debt includes lease obligations of Ł570 million (2021: Ł519 million, 2020: Ł541 million).

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35 Financial instruments This section gives an overview of the significance of financial financial assets when and only when its business model for instruments for the Group and provides additional information managing those assets changes. on balance sheet items that contain financial instruments. Financial assets are classified into three categories: Recognition and derecognition Financial assets at amortised cost are non-derivative financial A financial instrument is any contract that gives rise to a financial assets with contractual cash flows that consist solely of asset of one entity and a financial liability or equity instrument payments of principal and interest and which are held with of another entity. Financial instruments are recognised on the intention of collecting those contractual cash flows. the balance sheet when the Group becomes a party to the Subsequently, these are measured at amortised cost using the contractual provisions of the instrument. effective interest method less impairment losses, if any. These include cash and cash equivalents, contract assets and other The Group derecognises a financial asset only when the financial assets. contractual rights to the cash flows from the asset expire or it transfers the financial asset and substantially all the risks Financial assets at fair value through other comprehensive and rewards of ownership of the asset to another entity. If the income are non-derivative financial assets with contractual cash Group neither transfers nor retains substantially all the risks and flows that consist solely of payments of principal and interest and rewards of ownership and continues to control the transferred which are held with the intention of collecting those contractual asset, the Group recognises its retained interest in the asset and cash flows as well as to sell the financial asset. Subsequently, an associated liability for amounts it may have to pay. If the Group these are measured at fair value, with unrealised gains or losses retains substantially all the risks and rewards of ownership of a being recognised in other comprehensive income apart from transferred financial asset, the Group continues to recognise the any expected credit losses or foreign exchange gains or losses, financial asset and also recognises a collateralised borrowing for which are recognised in profit or loss. This category can also the proceeds received. Any gain or loss arising on derecognition include financial assets that are equity instruments which have is recognised in profit or loss. When a financial instrument is been irrevocably designated at initial recognition as fair value derecognised, the cumulative gain or loss in equity (if any) is through other comprehensive income. For these assets, there is transferred to the consolidated income statement. no expected credit loss recognised in profit or loss. Financial assets are written off when there is no reasonable Financial assets at fair value through profit or loss are financial expectation of recovery. The Group reviews the facts and assets with contractual cash flows that do not consist solely circumstances around each asset before making a determination. of payments of principal and interest. This category includes Financial assets that are written off could still be subject to derivatives, embedded derivatives separated from the host enforcement activities. contract and investments in certain convertible loan notes. Subsequently, these are measured at fair value, with unrealised Financial liabilities are derecognised when they are extinguished, gains or losses being recognised in profit or loss, with the that is when the obligation is discharged, cancelled or has exception of derivative instruments designated in a hedging expired. relationship, for which hedge accounting is applied. Initial measurement Classification and measurement – financial liabilities Initially, a financial instrument is recognised at its fair value. Financial liabilities are classified as subsequently measured Transaction costs directly attributable to the acquisition or at amortised cost unless they meet the specific criteria to be issue of financial instruments are recognised in determining the recognised at fair value through profit or loss. carrying amount, if it is not classified as at fair value through profit or loss. Transaction costs of financial instruments carried Other financial liabilities are measured at amortised cost using at fair value through profit or loss are expensed in profit or loss. the effective interest method. Subsequently, financial instruments are measured according to Financial liabilities at fair value through profit or loss include the category in which they are classified. derivatives and embedded derivatives separated from the host contract as well as financial liabilities held for trading. Classification and measurement – financial assets Subsequent to initial recognition, these are measured at fair value with gains or losses being recognised in profit or loss. Embedded Classification of financial assets is based on the business model derivatives relating to prepayment options on senior notes are in which the instruments are held as well as the characteristics not considered as closely related and are separately accounted of their contractual cash flows. The business model is based unless the exercise price of these options is approximately equal on management’s intentions and past pattern of transactions. on each exercise date to either the amortised cost of the senior Financial assets with embedded derivatives are considered in notes or the present value of the lost interest for the remaining their entirety when determining whether their cash flows are term of the senior notes. solely payment of principal and interest. The Group reclassifies Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 119

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FINANCIAL STATEMENTS Impairment account when pricing the asset or liability at the measurement date. Subsequent to initial recognition, the Group determines The Group recognises a loss allowance in profit or loss for the fair value of financial instruments that are quoted in active expected credit losses on financial assets held at amortised cost markets using the quoted bid prices (financial assets held) or or at fair value through other comprehensive income. Expected quoted ask prices (financial liabilities held) and using valuation credit losses are forward looking and are measured in a way that techniques for other instruments. Valuation techniques include is unbiased and represents a probability-weighted amount, takes the discounted cash flow method and other valuation models. into account the time value of money (values are discounted using the applicable effective interest rate) and uses reasonable Hedge accounting and supportable information. The Group uses foreign currency forward contracts, foreign Lifetime expected credit losses are calculated for assets that currency options and borrowings denominated in foreign were deemed credit impaired at initial recognition or have currency to hedge its risks associated with foreign currency subsequently become credit impaired as well as those where fluctuations relating to highly probable forecast transactions. credit risk has increased significantly since initial recognition. The Group designates these foreign currency forward contracts, foreign currency options and borrowings denominated in foreign The Group adopts the simplified approach to apply lifetime currency in cash flow hedging relationships. expected credit losses to trade receivables and contract assets. Where credit risk is deemed low at the reporting date or to have The Group uses cross-currency interest rate swaps to convert not increased significantly, credit losses for the next 12 months some of its foreign currency denominated fixed-rate borrowings are calculated. to GBP floating-rate borrowings. Hedge accounting is applied using both fair value and cash flow hedging relationships. The Credit risk is determined to have increased significantly when designated risks are foreign currency and interest rate risks. the probability of default increases. Such increases are relative and assessment may include external ratings (where available) Derivative contracts are stated at fair value on the consolidated or other information such as past due payments. Historic data balance sheet at each reporting date. and forward-looking information are both considered. Objective evidence for a significant increase in credit risk may include At inception of the hedge relationship, the Group documents where payment is overdue by 90 or more days as well as other the economic relationship between the hedging instrument and information about significant financial difficulties of the borrower. the hedged item, including whether changes in the cash flows of the hedging instrument are expected to offset changes in the Equity instruments cash flows of the hedged item. The Group documents its risk management objective and strategy for undertaking its hedging An equity instrument is any contract that evidences residual transactions. The Group designates only the intrinsic value of interests in the assets of the Group after deducting all of its foreign exchange options in the hedging relationship. The Group liabilities. Equity instruments issued by the Group are recorded designates amounts excluding foreign currency basis spread at the proceeds received, net of direct issue costs. in the hedging relationship for both foreign exchange forward contracts and cross-currency interest rate swaps. Changes in Investments in equity instruments are measured at fair value; the fair value of the derivative contracts that are designated and however, where a quoted market price in an active market is not effective as hedges of future cash flows are recognised in the available, equity instruments are measured at cost (investments cash flow hedge reserve within other comprehensive income (net in equity instruments that are not held for trading). The Group of tax), and any ineffective portion is recognised immediately in has not elected to account for these investments at fair value the consolidated income statement. through other comprehensive income. Changes in both the time value of foreign exchange options Determination of fair value and foreign currency basis spread of foreign exchange forwards and cross-currency interest rate swaps are recognised in other Fair value is the price that would be received to sell an asset or paid comprehensive income (net of tax) in the cost of hedging reserve to transfer a liability in an orderly transaction between market to the extent that they relate to the hedged item (the “aligned” participants at the measurement date, regardless of whether value). that price is directly observable or estimated using another valuation technique. The fair value of a financial instrument on Changes in the fair value of contracts that are designated in a fair initial recognition is normally the transaction price. value hedge are taken to the consolidated income statement. They offset the change in fair value, attributable to the hedged In estimating the fair value of an asset or liability, the Group risks, of the borrowings designated as the hedged item. takes into account the characteristics of the asset or liability if market participants would take those characteristics into

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Hedge accounting is discontinued when the hedging instrument At 31 March 2021, the Group’s hedging relationship exposures expires or is sold, terminated, exercised or no longer qualifies were indexed to GBP LIBOR and the Group’s non-hedged for hedge accounting. Amounts accumulated in equity are relationship exposures were indexed to GBP LIBOR and USD reclassified to the consolidated income statement in the periods LIBOR. On 31 December 2021, the ICE Benchmark Administration in which the forecast transactions affect profit or loss or as an (IBA), the FCA-regulated and authorised administrator of LIBOR, adjustment to a non-financial item (e.g. inventory) when that ceased to publish a number of IBOR benchmarks including GBP item is recognised on the balance sheet. These deferred amounts LIBOR. Most USD LIBORs will cease to be published after June are ultimately recognised in profit or loss as the hedged item 2023. affects profit or loss (for example through cost of goods sold). During the year ended 31 March 2022, the Group converted its If the forecast transaction is no longer expected to occur, the LIBOR exposures to risk-free rates in advance of the cessation net cumulative gain or loss in equity, including deferred costs date. This conversion included loans and derivatives which have of hedging, is immediately transferred and recognised in the been converted using fallback provisions. A number of derivatives consolidated income statement. which were converted using fallback provisions have not yet transitioned to RFR due to the timing of reprice dates. Loans held Interest rate benchmark reform by the Group that reference USD LIBOR will continue to do so until June 2023. The expected impact of financial instruments A reform of major interest rate benchmarks is being undertaken yet to transition is immaterial for the Group. globally, including the replacement of some interbank offered rates (‘IBORs’) with alternative risk-free rates (‘RFR’). As a result of the fallback provision, the Group consider its The Group has adopted Interest Rate Benchmark Reform exposure to interest rate benchmark reform at 31 March 2022 (Phase 2) Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 to be minimal. The following table shows the total amounts of and IFRS 16 (effective 1 January 2022). The amendments exposures to IBOR which have yet to transition and those with permit modifications to asset and liability values as a direct appropriate fallback language at 1 April 2021 and at 31 March consequence of the interest rate benchmark reform, and which 2022. The amounts of financial assets and financial liabilities are are made on an economically equivalent basis (i.e. where the shown at their carrying amounts and derivatives are shown at basis for determining contractual cash flows is the same), by their notional amounts: only updating the effective interest rate. The amendments also provide relief from specific hedge accounting requirements.                GBP LIBOR                 USD LIBOR Total amount of Amount with Total amount of Amount with As at (Ł millions) contracts not yet appropriate fall- contracts not yet appropriate fall-transitioned back clause transitioned back clause 31 March 2022 Financial liabilities—carrying value Syndicated loan — (753) (753) UKEF facility — — Derivatives—notional amount Cross currency interest rate swaps—hed- (380) (380)—-ged Cross currency interest rate swaps—non (539) (539) hedged 1 April 2021 Financial liabilities—carrying value Syndicated loan — (719) -UKEF facility (443) ——Derivatives—notional amount Cross currency interest rate swaps—hed- (825) — -ged Cross currency interest rate swaps—non (539) hedged Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 121

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FINANCIAL STATEMENTS (A) Financial assets and liabilities The following table shows the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2022: Fair Value Through Profit and Loss Derivatives Derivatives in As at 31 March 2022 (Ł millions) Amorti- Financial other than in hedging rela- Total carr- Total fair sed cost assets hedging rela- tionship ying value value tionship Cash and cash equivalents 4,223 ——4,223 4,223 Short-term deposits and other investments 175 ——175 175 Trade receivables 722 ——722 722 Investments—30 — 30 30 Other financial assets—current 209—128 57 394 394 Other financial assets—non-current 87—85 13 185 185 Total financial assets 5,416 30 213 70 5,729 5,729 Accounts payable 5,144 ——5,144 5,144 Short-term borrowings 1,779 ——1,779 1,778 Long-term borrowings* 5,248 ——5,248 5,216 Other financial liabilities—current 425—29 416 870 870 Other financial liabilities—non-current 533—52 286 871 901 Total financial liabilities 13,129—81 702 13,912 13,909 * Included in the long-term borrowings shown in other financial liabilities is Ł801 million that is designated as the hedged item in a fair value hedge relationship. Included within this figure is Ł(67) million of fair value adjustments as a result of the hedge relationship. The following table shows the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2021: Fair Value Through Profit and Loss Derivatives Derivatives in As at 31 March 2021 (Ł millions) Amorti- Financial other than in hedging rela- Total carr- Total fair sed cost assets hedging rela- tionship ying value value tionship Cash and cash equivalents 3,778 ——3,778 3,778 Short-term deposits and other investments 1,004 ——1,004 1,004 Trade receivables 863 ——863 863 Investments—22 — 22 22 Other financial assets—current 196—73 208 477 477 Other financial assets—non-current 92—42 207 341 341 Total financial assets 5,933 22 115 415 6,485 6,485 Accounts payable 6,308 ——6,308 6,308 Short-term borrowings 1,206 ——1,206 1,217 Long-term borrowings* 4,972 ——4,972 5,136 Other financial liabilities—current 508—67 171 746 746 Other financial liabilities—non-current 456—65 104 625 688 Total financial liabilities 13,450—132 275 13,857 14,095 * Included in the long-term borrowings shown in other financial liabilities is Ł784 million that is designated as the hedged item in a fair value hedge relationship. Included within this figure is Ł1 million of fair value adjustments as a result of the hedge relationship.

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The following table shows the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2020: Fair Value Through Profit and Loss Derivatives Derivatives in As at 31 March 2020 (Ł millions) Amorti- Financial other than in hedging rela- Total carr- Total fair sed cost assets hedging rela- tionship ying value value tionship Cash and cash equivalents 2,271 ——2,271 2,271 Short-term deposits and other investments 1,393 ——1,393 1,393 Trade receivables 833 ——833 833 Investments—37 — 37 37 Other financial assets—current 142—153 88 383 383 Other financial assets—non-current 115—9 133 257 257 Total financial assets 4,754 37 162 221 5,174 5,174 Accounts payable 6,499 ——6,499 6,499 Short-term borrowings 526 ——526 512 Long-term borrowings* 4,817 ——4,817 3,859 Other financial liabilities—current 620—204 249 1,073 1,073 Other financial liabilities—non-current 468—48 262 778 778 Total financial liabilities 12,930—252 511 13,693 12,721 * Included in the long-term borrowings shown in other financial liabilities is Ł891 million that is designated as the hedged item in a fair value hedge relationship. Included within this figure is Ł45 million of fair value adjustments as a result of the hedge relationship. Offsetting Certain financial assets and financial liabilities are subject to Derivative financial assets and financial liabilities are subject to offsetting where there is currently a legally enforceable right master netting arrangements whereby in the case of insolvency, to set off recognised amounts and the Group intends to either derivative financial assets and financial liabilities can be settled settle on a net basis or to realise the asset and settle the liability on a net basis. simultaneously. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 123    

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FINANCIAL STATEMENTS The following table discloses the amounts that have been offset in arriving at the consolidated balance sheet presentation and the amounts that are available for offset only under certain conditions as at 31 March 2022: Amounts subject to a master netting arrangement Gross Gross amount of Net amount Cash Net amount As at 31 March 2022 (Ł millions) amount recognised set presented in the Financial collateral after recognised off in the balance balance sheet instruments (received) / offsetting sheet pledged Financial assets Derivative financial assets 283—283 (275)—8 Cash and cash equivalents 4,381 (158) 4,223 — 4,223 4,664 (158) 4,506 (275)—4,231 Financial liabilities Derivative financial liabilities 783—783 (275)—508 Short-term borrowings 1,937 (158) 1,779 — 1,779 2,720 (158) 2,562 (275)—2,287 The following table discloses the amounts that have been offset in arriving at the consolidated balance sheet presentation and the amounts that are available for offset only under certain conditions as at 31 March 2021: Amounts subject to a master netting arrangement Gross Gross amount of Net amount Cash Net amount As at 31 March 2021 (Ł millions) amount recognised set presented in the Financial collateral after recognised off in the balance balance sheet instruments (received) / offsetting sheet pledged Financial assets Derivative financial assets 530—530 (362)—168 Cash and cash equivalents 3,995 (217) 3,778 — 3,778 4,525 (217) 4,308 (362)—3,946 Financial liabilities Derivative financial liabilities 407—407 (362)—45 Short-term borrowings 1,423 (217) 1,206 — 1,206 1,830 (217) 1,613 (362)—1,251 The following table discloses the amounts that have been offset in arriving at the consolidated balance sheet presentation and the amounts that are available for offset only under certain conditions as at 31 March 2020: Amounts subject to a master netting arrangement Gross Gross amount of Net amount Cash Net amount As at 31 March 2020 (Ł millions) amount recognised set presented in the Financial collateral after recognised off in the balance balance sheet instruments (received) / offsetting sheet pledged Financial assets Derivative financial assets 383—383 (377)—6 Cash and cash equivalents 2,981 (710) 2,271 — 2,271 3,364 (710) 2,654 (377)—2,277 Financial liabilities Derivative financial liabilities 763—763 (377)—386 Short-term borrowings 1,236 (710) 526 — 526 1,999 (710) 1,289 (377)—912

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Fair value hierarchy similarly fair valued by discounting expected future contractual cash flows. Option contracts on foreign currency are entered into Financial instruments held at fair value are required to be on a zero cost collar basis and fair value estimates are calculated measured by reference to the following levels: from standard Black-Scholes options pricing methodology, using prevailing market interest rates and volatilities. The estimate • Quoted prices in an active market (Level 1): this level of of fair values for cross-currency swaps is calculated using hierarchy includes financial instruments that are measured discounted estimated future cash flows. Estimates of the future by reference to quoted prices (unadjusted) in active markets floating-rate cash flows are based on quoted swap rates, future for identical assets or liabilities; prices, interbank borrowing rates (“LIBOR”) and risk free rates (“SONIA”). • Valuation techniques with observable inputs (Level 2): this level of hierarchy includes financial assets and liabilities Additionally, a credit valuation adjustment/debit value measured using inputs other than quoted prices included adjustment is taken on derivative financial assets and liabilities within Level 1 that are observable for the asset or liability, and is calculated by discounting the fair value gain or loss on either directly (i.e. as prices) or indirectly (i.e. derived from the financial derivative using credit default swap (“CDS”) prices prices); and quoted for the counterparty or Jaguar Land Rover respectively. CDS prices are obtained from Reuters. • Valuation techniques with significant unobservable inputs (Level 3): this level of hierarchy includes financial assets The long-term borrowings are held at amortised cost. The fair and liabilities measured using inputs that are not based on value of the listed debt for disclosure purposes is determined observable market data (unobservable inputs). Fair values using Level 1 valuation techniques, based on the closing price are determined in whole or in part using a valuation model as at 31 March 2022 on the Luxembourg Stock Exchange based on assumptions that are neither supported by prices multilateral trading facility (“EURO MTF”) market, for unsecured from observable current market transactions in the same listed bonds. For bank loans, Level 2 valuation techniques are instrument nor based on available market data. used. Recent transaction values Fair values of cash and cash equivalents, short-term deposits, trade receivables and payables, and other financial assets and The pricing of recent investment transactions is the main input liabilities (current and non-current excluding derivatives and of valuations performed by the Group. The Group’s policy is to lease obligations) are assumed to approximate to cost due to use observable market data where possible for its valuations the short-term maturing of the instruments and as the impact of and, in the absence of portfolio company earnings or revenue discounting is not significant. to compare, or of relevant comparable businesses’ data, recent transaction prices represent the most reliable observable inputs. Other investments that are not equity accounted for are recognised at fair value. Where there is an active quoted market, Alternative valuation methodologies the fair value is determined using Level 1 valuation techniques, based on the closing price at year end. The valuation of such Alternative valuation methodologies are used by the Group for investments as at 31 March 2022 is Łnil (2021: Łnil, 2020: Ł17 reasons specific to individual assets. At 31 March 2022, the million). Where there is no active quoted market, the fair values alternative technique used was net asset value, representing have been determined using Level 3 valuation techniques and 100 per cent of alternatively valued assets. the closing valuation as at 31 March 2022 is Ł30 million (2021: Ł22 million, 2020: Ł20 million). The fair value gain recognised in There has been no change in the valuation techniques adopted in the consolidated income statement for Level 3 investments for either current or prior financial years as presented. There were no the year ended 31 March 2022 is Ł4 million (2021: gain of Ł2 transfers between fair value levels in the years ended 31 March million, 2020: loss of Ł1 million). 2022, 2021 and 2020. Of the financial assets held at 31 March 2022 and classified as The financial instruments that are measured subsequent to Level 3, 96 per cent (2021: 94 per cent, 2020: 93 per cent) were initial recognition at fair value are classified as Level 2 fair value valued using recent transaction values and 4 per cent (2021: measurements, as defined by IFRS 13, being those derived from 6 per cent, 2020: 7 per cent) were valued using an alternative inputs other than quoted prices that are observable. These technique. valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity- Management uses its best judgement in estimating the specific estimates. Fair values of forward derivative financial fair value of its financial instruments. However, there are assets and liabilities are estimated by discounting expected inherent limitations in any estimation technique. Therefore, for future contractual cash flows using prevailing market interest substantially all financial instruments, the fair value estimates rate curves from Reuters. Commodity swap contracts are presented above are not necessarily indicative of all the amounts Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 125

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FINANCIAL STATEMENTS that the Group could have realised in a sales transaction as of the functional currency of the respective consolidated entities. the respective dates. The estimated fair value amounts as at 31 March 2022, 2021 and 2020 have been measured as at Considering the countries and economic environment in which the respective dates. As such, the fair values of these financial the Group operates, its operations are subject to risks arising instruments subsequent to the respective reporting dates may from fluctuations in exchange rates in those countries. The risks be different from the amounts reported at each year end. primarily relate to fluctuations in US Dollar, Chinese Yuan and Euro against the functional currency of the Company and its (B) Financial risk management subsidiaries. The Group is exposed to foreign currency exchange rate, Foreign exchange risk on future transactions is mitigated through commodity price, interest rate, liquidity and credit risks. The the use of derivative contracts. The Group is also exposed to Group has a risk management framework in place, which fluctuations in exchange rates that impact the valuation of monitors all of these risks as discussed below. This framework is foreign currency denominated assets and liabilities of its National approved by the JLR plc Board. Sales Companies and also foreign currency denominated balances on the Group’s consolidated balance sheet at each Foreign currency exchange rate risk reporting period end. In addition to the derivatives designated in hedging relationships as detailed in section (C), the Group The fluctuation in foreign currency exchange rates may have enters into foreign currency contracts as economic hedges of a potential impact on the consolidated income statement, recognised foreign currency debt. the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of The following table sets forth information relating to foreign changes in equity and the consolidated cash flow statement, currency exposure as at 31 March 2022: where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than As at 31 March 2022 (Ł millions) US Dollar Chinese Yuan Euro Others Financial assets 1,640 393 1,036 420 Financial liabilities (3,557) (1,148) (4,220) (279) Net exposure (liability)/asset (1,917) (755) (3,184) 141 A10% appreciation/depreciation of the currency would result in additional gain/(loss): Impact on net income before tax for financial assets 164/(164) 39/(39) 104/(104) n/a Impact on net income before tax for financial liabilities (356)/356 (115)/115 (422)/422 n/a Impact on other comprehensive income for financial assets and ——n/a liabilities The following table sets forth information relating to foreign currency exposure as at 31 March 2021: As at 31 March 2021 (Ł millions) US Dollar Chinese Yuan Euro Others Financial assets 1,726 342 1,118 311 Financial liabilities (3,267) (1,192) (4,259) (349) Net exposure liability (1,541) (850) (3,141) (38) A 10% appreciation/depreciation of the currency would result in additional gain/(loss): Impact on net income before tax for financial assets 173/(173) 34/(34) 111/(111) n/a Impact on net income before tax for financial liabilities (327)/327 (119)/119 (426)/426 n/a Impact on other comprehensive income for financial assets and ——n/a liabilities

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The following table sets forth information relating to foreign currency exposure as at 31 March 2020: As at 31 March 2020 (Ł millions) US Dollar Chinese Yuan Euro Others Financial assets 1,785 484 1,205 409 Financial liabilities (2,791) (523) (4,312) (412) Net exposure liability (1,006) (39) (3,107) (3) A 10% appreciation/depreciation of the currency would result in additional gain/(loss): Impact on net income before tax for financial assets 178/(178) 48/(48) 120/(120) n/a Impact on net income before tax for financial liabilites (279)/279 (52)/52 (431)/431 n/a Impact on other comprehensive income for financial assets and ——n/a liabilities Commodity price risk some of its issued debt from foreign currency denominated fixed-rate debt to GBP floating-rate debt. The derivative instruments The Group is exposed to commodity price risk arising from the and the foreign currency fixed-rate debt may be designated in a purchase of certain raw materials such as aluminium, copper, hedging relationship. platinum and palladium. This risk is mitigated through the use of derivative contracts and fixed-price contracts with suppliers. The As at 31 March 2022, short-term borrowings of Ł401 million derivative contracts are not hedge accounted and are measured (2021: Ł253 million, 2020: Ł225 million) and long-term at fair value through profit or loss. borrowings of Ł1,260 million (2021: Ł1,037 million, 2020: Ł1,260 million) were subject to a variable interest rate. An The total fair value gain on commodities of Ł131 million increase/decrease of 100 basis points in interest rates at the (2021: gain of Ł137 million, 2020: loss of Ł74 million) has balance sheet date would result in an impact of Ł17 million been recognised in “Foreign exchange gain/(loss) and fair (2021: Ł13 million, 2020: Ł15 million) in the consolidated value adjustments” in the consolidated income statement. income statement. The amounts reported do not reflect the purchasing benefits received by the Group (which are included within “Material and The risk estimates provided assume a parallel shift of 100 basis other cost of sales”). points in interest rates across all yield curves. This calculation also assumes that the change occurs at the balance sheet date A 10 per cent appreciation/depreciation of all commodity prices and has been calculated based on risk exposures outstanding underlying such contracts would have resulted in a gain/loss of as at that date. The year-end balances are not necessarily Ł52 million (2021: Ł41 million, 2020: Ł49 million). representative of the average debt outstanding during the year. Interest rate risk Liquidity risk Interest rate risk is the risk that changes in market interest rates Liquidity risk is the risk that the Group will not be able to meet its will lead to changes in interest income and expense for the Group. financial obligations as they fall due. In addition to issuing long-term fixed-rate bonds, the Group The Group’s policy on liquidity risk is to maintain sufficient has other facilities in place that are primarily used to finance liquidity in the form of cash and undrawn borrowing facilities to working capital and are subject to variable interest rates. When meet the Group’s operating requirements with an appropriate undertaking a new debt issuance, the JLR plc Board will consider level of headroom. the fixed/floating interest rate mix of the Group, the outlook for future interest rates and the appetite for certainty of funding costs. The Group uses cross-currency interest rate swaps to convert Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 127

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FINANCIAL STATEMENTS The following are the undiscounted contractual maturities of financial liabilities, including estimated interest payments: Carrying Contractual 1 year 1 to <2 2 to <5 5 years As at 31 March 2022 (Ł millions) amount cash flows or less years years and over Financial liabilities Accounts payable 5,144 5,144 5,144 — -Long-term borrowings and accrued interest 5,315 6,447 246 1,045 3,356 1,800 Short-term borrowings and accrued interest 1,793 1,833 1,833 — -Lease obligations 570 944 103 85 195 561 Other financial liabilities 307 325 293 32 —Derivative financial instruments 783 1,065 510 278 275 2 Total contractual maturities 13,912 15,758 8,129 1,440 3,826 2,363 Carrying Contractual 1 year 1 to <2 2 to <5 5 years As at 31 March 2021 (Ł millions) amount cash flows or less years years and over Financial liabilities Accounts payable 6,308 6,308 6,308 — -Long-term borrowings and accrued interest 4,972 6,075 230 1,265 3,198 1,382 Short-term borrowings and accrued interest 1,206 1,239 1,239 — -Lease obligations 519 840 103 85 201 451 Other financial liabilities 445 390 383 7 —Derivative financial instruments 407 461 255 115 91—Total contractual maturities 13,857 15,313 8,518 1,472 3,490 1,833 Carrying Contractual 1 year 1 to <2 2 to <5 5 years As at 31 March 2020 (Ł millions) amount cash flows or less years years and over Financial liabilities Accounts payable 6,499 6,499 6,499 — -Long-term borrowings and accrued interest 4,817 5,828 218 739 3,430 1,441 Short-term borrowings and accrued interest 526 536 536 — -Finance lease obligations 541 903 112 90 208 493 Other financial liabilities 547 513 498 11 4 -Derivative financial instruments 763 894 491 272 131—Total contractual maturities 13,693 15,173 8,354 1,112 3,773 1,934 Credit risk Credit risk is the risk of financial loss to the Group if a counterparty made with any single counterparty depending on their published to a financial instrument fails to meet its contractual obligation. external credit rating. The majority of the Group’s credit risk pertains to the risk of financial loss arising from counterparty default on cash To a lesser extent the Group has an exposure to counterparties investments. on trade receivables and other financial assets. The Group seeks to mitigate credit risk on sales to third parties through the use of The carrying amount of financial assets represents the maximum payment at the point of delivery, credit limits, credit insurance credit exposure. None of the financial instruments of the Group and letters of credit from banks that meet internal rating criteria. result in material concentrations of credit risks. Financial assets All Group cash is invested according to strict credit criteria and actively monitored by Group Treasury in conjunction with the None of the Group’s cash equivalents, including term deposits current market valuation of derivative contracts. To support this, with banks, are past due or impaired. Regarding other financial the JLR plc Board has implemented an investment policy that assets that are neither past due nor impaired, there were no places limits on the maximum cash investment that can be indications as at 31 March 2022 (2021 and 2020: no indications) that defaults in payment obligations will occur.

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The Group has reviewed trade and other receivables not yet due Trade receivables past due and impaired are set out below: and not impaired and no material issues have been identified. As at 31 2022 2022 Net 2021 2021 Net 2020 2020 Net March (Ł 2022 Gross impairment carrying 2021 Gross impairment carrying 2020 Gross impairment carrying millions) value value value Not yet due 640 (2) 638 747 (2) 745 675 (2) 673 Overdue <3 months 74—74 88—88 141 (1) 140 Overdue 3-6 months 8—8 10—10 10 (1) 9 Overdue >6 months 4 (2) 2 25 (5) 20 18 (7) 11 Total 726 (4) 722 870 (7) 863 844 (11) 833 Included within trade receivables is Łnil (2021: Ł19 million, 9 as well as the Group’s risk management objectives. 2020: Łnil) of receivables that are part of a debt factoring arrangement. These assets do not qualify for de-recognition due Commodity derivatives are not hedge accounted. Foreign to the recourse arrangements in place. The related liability of Łnil currency forward contracts, foreign currency options and foreign (2021: Ł19 million, 2020: Łnil) is in short-term borrowings. Both currency denominated borrowings may be designated as hedging the asset and associated liability are classified as amortised cost. instruments in a cash flow hedge relationship against forecast foreign currency transactions to mitigate foreign currency Off-balance sheet financial arrangements exchange risk associated with those transactions. At 31 March 2022, Jaguar Land Rover Limited (a subsidiary In addition, the Group uses cross-currency interest rate swaps of the Company) had sold Ł191 million equivalent of trade to hedge its foreign currency exchange risk associated with receivables under its debt factoring facility, which was renewed recognised borrowings. These instruments may be designated during the year ended 31 March 2021 to a $500 million facility in both cash flow and fair value hedging relationships, or may expiring March 2023. be economic hedges of debt. The Group also manages foreign exchange risk on recognised borrowings using FX swaps. (C) Derivatives and hedge accounting The Group utilises FX spot & FX swap contracts to manage operational requirements. The Group’s operations give rise to revenue, raw material purchases and borrowings in currencies other than the Group’s The gain/(loss) on the derivatives that are not designated in presentation currency of GBP. The Group forecasts these hedging relationships, whose fair value movements are recognised transactions over the medium term and enters into derivative in ‘Foreign exchange gain/(loss) and fair value adjustments’ in contracts to mitigate the resulting foreign currency exchange the consolidated income statement, is as follows: risk, interest rate risk and commodity price risk. The Group’s risk management strategy allows for hedge accounting when the derivatives meet the hedge accounting criteria as set out in IFRS    Year ended 31 March (Ł millions) 2022 2021 2020 Commodity derivative contracts 131 137 (74) Foreign currency derivative contracts 72 (77) 27 Interest rate derivative contracts 25 (47)—Total gain/(loss) 228 13 (47) In all cases the Group uses a hedge ratio of 1:1. The critical terms derivative portfolio that are sensitive to changes in foreign of the derivative contracts are aligned with those of the hedged exchange rates (including the impact to the fair value adjustment item. The Group allows a maximum hedging term of five years of foreign currency borrowings designated as the hedged item for forecast transactions. The Group’s risk management policy in a fair value hedge relationship) would have resulted in the allows for decreasing levels of hedging as the forecasting horizon approximate additional (loss)/gain shown in the table on the increases. following page: A 10 per cent depreciation/appreciation in Sterling against the foreign currency underlying contracts within the Group’s Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 129

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FINANCIAL STATEMENTS As at 31 March (Ł millions) 2022 2021 2020 10% depreciation in Sterling against the foreign currency: In other comprehensive income (1,119) (571) (547) In the consolidated income statement 476 299 64 10% appreciation in Sterling against the foreign currency: In other comprehensive income 959 480 554 In the consolidated income statement (369) (231) (36) The following table sets out the change in the Group’s exposure to interest rate risk as a result of hedge accounted cross-currency interest rate swaps: Foreign currency receivable Reporting currency payable average interest rate average interest rate % % % % % % Outstanding contracts 2022 2021 2020 2022 2021 2020 Cross currency interest rate swaps < 1 year — — —Between 1-5 years 4.500 — SONIA + 4.777 —>5 years 4.500 4.500 4.500 LIBOR + 2.033 LIBOR + 3.235 LIBOR + 3.235 The following table shows the impact that would result from interest rate derivatives and any related hedging relationships given an increase/decrease of 100 basis points in interest rates at the balance sheet date: As at 31 March (Ł millions) 2022 2021 2020 100 basis points depreciation in interest rates In the consolidated income statement (22) (1) (7) 100 basis points appreciation in interest rates In the consolidated income statement 21 1 4 Cash flow hedges The Group uses foreign currency options, foreign currency forward It is anticipated that the hedged sales will take place over the contracts and recognised foreign currency borrowings as the next one to five years, at which time the amount deferred in hedging instruments in cash flow hedge relationships of hedged equity will be reclassified to revenue in the consolidated income sales and purchases. The time value of options and the foreign statement. currency basis spread of foreign exchange forward contracts are excluded from the hedge relationship and are recognised in other It is anticipated that the hedged purchases will take place over comprehensive income as a cost of hedging to the extent they the next one to five years, at which time the amount deferred relate to the hedged item (the aligned value). Additionally, the in equity will be included in the carrying amount of the raw Group uses cross-currency interest rate swaps as the hedging materials. On sale of the finished product, the amount previously instrument of the foreign exchange risk of recognised foreign deferred in equity and subsequently recognised in inventory currency borrowings. will be reclassified to material and other cost of sales in the consolidated income statement. Changes in the fair value of foreign currency contracts, to the extent determined to be an effective cash flow hedge, are The foreign currency borrowings designated as the hedged item recognised in the consolidated statement of comprehensive mature in January 2026 and October 2027, at which time the income, and the ineffective portion of the fair value change is amount deferred in equity will be reclassified to the consolidated recognised in the consolidated income statement. There is not income statement. generally expected to be significant ineffectiveness from cash flow hedges.

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The table below sets out the timing profile of the hedge accounted derivatives: Carrying value assets / As at 31 March Average strike rate Nominal amounts (liabilities) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Outstanding contracts Łm Łm Łm Łm Łm Łm Cash flow hedges of foreign exchange risk on forecast transactions Derivative instruments Sell—USD <1 year 0.7604 0.7596 0.7229 2,882 2,833 1,766 5 136 (157) Between 1-5 years 0.7361 0.7654 0.7649 3,734 3,096 5,098 (77) 172 (190) Sell—Chinese Yuan <1 year 0.1094 0.1098 0.1086 2,819 1,647 1,601 (235) 12 (59) Between 1-5 years 0.1123 0.1088 0.1096 3,521 629 1,189 (126) 11 (20) Buy—Euro <1 year 0.8875 0.9069 0.9109 2,892 2,695 2,635 (111) (136) 1 Between 1-5 years 0.8860 0.9010 0.9101 1,254 1,899 3,384 (5) (81) (17) Other currencies <1 year 873 1,145 905 (17) 24 55 Between 1-5 years 870 846 1,238 (28) 7 39 Total cash flow hedges of foreign exchange risk on forecast transactions    18,845 14,790 17,816 (594) 145 (348) Hedges of foreign exchange risk on recognised debt Cross currency interest rate swaps USD < 1 year — — — — -Between 1-5 years — — — — ->5 years 0.7592 0.7592 0.7592 380 380 380 1 7 57 EUR < 1 year — — — — -Between 1-5 years 0.8912 — 446 — (39) —>5 years—0.8912 0.8912—446 446—(14) 3 Total cash flow hedges of foreign exchange risk on recognised debt 826 826 826 (38) (7) 60 The line items in the consolidated balance sheet that include the above derivative instruments are “Other financial assets” and “Other financial liabilities”. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 131    

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FINANCIAL STATEMENTS The following table sets out the effect of the Group’s cash flow hedges on the financial performance of the Group: Year ended 31 March (Ł millions) 2022 2021 2020 Fair value (loss)/gain of foreign currency derivative contracts recognised in (816) 446 (254) hedging reserves Fair value loss of foreign currency borrowings recognised in hedging reserves — (7) Fair value gain/(loss) of derivatives hedging foreign currency borrowings 5 (9) 2 recognised in hedging reserves (Loss)/gain recognised in other comprehensive income in the year (811) 437 (259) Gain/(loss) reclassified from cash flow hedging reserve and recognised in 75 (112) (565) ‘Revenue’ in the income statement Gain reclassified from cash flow hedging reserve and recognised in Foreign exchange gain/(loss) and fair value adjustments’ in the income statement on 10 3 -account of forecast transactions no longer expected to occur Gain reclassified from cost of hedging reserve and recognised in Foreign exchange gain/(loss) and fair value adjustments’ in the income statement on — 2 account of forecast transactions no longer expected to occur Gain/(loss) reclassified to profit and loss in the year 85 (109) (563) Net change in the hedged item used for assessing hedge effectiveness (762) 534 172 Gain/(loss) on derivatives not hedge accounted, recognised in ‘Foreign 72 (77) 27 exchange gain/(loss) and fair value adjustments’ in the income statement Fair value hedges Changes in the fair value of foreign currency contracts that are The Group uses cross-currency interest rate swaps as the designated in fair value hedging relationships are recognised in hedging instrument in a fair value hedge of foreign exchange and the consolidated income statement. Changes in the fair value interest rate risks of foreign currency denominated debt. The of the underlying hedged item (long-term borrowings) for the derivatives convert foreign currency USD fixed-rate borrowings hedged risks are recognised in the same income statement line. to GBP floating-rate debt.

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The fair value of the cross-currency interest rate swaps, included in “Derivatives in hedging relationship” in section (A), are as follows: As at 31 March (Ł millions) 2022 2021 2020 Other financial assets—current — -Other financial assets—non-current 1 7 60 Total financial assets 1 7 60 Other financial liabilities—current — -Other financial liabilities—non-current 39 14—Total financial liabilities 39 14—The following amounts have been recognised in relation to fair value hedges in the consolidated income statement: Year ended 31 March (Ł millions) 2022 2021 2020 Net gain/(loss) in the hedged item used for assessing hedge effectiveness, taken to the consolidated income statement in ‘Foreign exchange gain/(loss) and fair value adjustments’ 51 108 (78) Fair value changes in the derivative instruments used in assessing hedge effectiveness, taken to the consolidated income statement in ‘Foreign exchange gain/(loss) and fair value adjustments’ (36) (58) 61 Ineffectiveness recognised in the consolidated income statement in 15 50 (17) ‘Foreign exchange gain/(loss) and fair value adjustments’ 36 Leases • The Group has the right to direct the use of the asset. The Group has this right when it has the decision making At inception of a contract, the Group assesses whether a rights that are most relevant to changing how and for contract is, or contains a lease. A contract is, or contains, a what purposes the asset is used. In rare cases where the lease if the contract conveys the right to control the use of an decision about how and for what purpose the asset is used identified asset for a period of time in exchange for consideration. is predetermined, the Group has the right to direct the use To assess whether a contract conveys the right to control the of the asset if either: use of an identified asset, the Group assesses whether: • The Group has the right to operate the asset; or • The contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically • The Group designed the asset in a way that distinct or represent substantially all of the capacity of a predetermines how and for what purposes it will be physically distinct asset. If the supplier has a substantive used. substitution right, then the asset is not identified; At inception or on reassessment of a contract that contains a • The Group has the right to substantially all of the economic lease component, the Group allocates the consideration in the benefits from the use of the asset throughout the period of contract to each lease component on the basis of their relative use; and stand-alone prices. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 133

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FINANCIAL STATEMENTS The Group recognises a right-of-use asset and a lease liability at Changes to lease payments for such leases are accounted for as the lease commencement date. The right-of-use asset is initially if they are not lease modifications. measured at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or before The Group leases a number of buildings, plant and equipment, IT the commencement date, plus any initial direct costs incurred hardware and software assets, certain of which have a renewal and an estimate of costs to dismantle and remove the underlying and/or purchase options in the normal course of the business. asset or to restore the underlying asset or the site on which it is Extension and termination options are included in a number of allocated, less any lease incentives received. leases across the Group. These are used to maximise operational flexibility in terms of managing the assets used in the Group’s The right-of-use asset is subsequently depreciated using the operation. The majority of extension and termination options straight-line method over the shorter of the useful life of the held are exercisable only by the Group and not by the respective leased asset and the expected lease term. If ownership of the lessor. The Group assesses at lease commencement whether it leased asset is automatically transferred at the end of the lease is reasonably certain to exercise the extension or termination term or the exercise of a purchase option is reflected in the lease option. The Group re-assesses whether it is reasonably certain payments, the right-of-use asset is amortised on a straight-line to exercise options if there is a significant event or significant basis over the expected useful life of the leased asset. change in circumstances within its control. The Group’s leases mature between 2022 and 2052. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement There are no leases with residual value guarantees. date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental                borrowing rate. Generally, the Group uses its incremental borrowing rate as a discount rate. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments. The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. Lease payments include fixed payments, i.e. amounts expected to be payable by the Company under residual value guarantee, the exercise price of purchase options and lease payments in relation to lease extension options, if the Company is reasonably certain to exercise purchase or extension options, and payment of penalties for terminating the lease if the lease term considered reflects that the Company shall exercise a termination option. The Group applies the practical expedient to not assess whether rent concessions occurring as a direct consequence of the COVID-19 pandemic that meet the following conditions are lease modifications: • The change in lease payments results in revised consideration that is substantially the same, or less than the consideration for the lease immediately preceding the change; • Any reduction in lease payments affects only payments originally due on or before 30 June 2022; and • There no substantive changes to other terms and conditions of the lease.

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Leases as a lessee Information about leases for which the Group is a lessee is presented below. Right-of-use assets Land and Plant and Fixtures and Ł millions Computers Vehicles Other Total buildings equipment fittings Balance at 31 March 2022 504 6 41 3 13 1 568 Balance at 31 March 2021 475 6 45 3 12 2 543 Balance at 31 March 2020 483 7 56 6 13 3 568 Depreciation charge for the year 87 60 4 17 3 1 2 ended 31 March 2022 Depreciation charge for the year 63 7 17 5 1 1 94 ended 31 March 2021 Depreciation charge for the year 92 62 8 17 3 1 1 ended 31 March 2020 Additions to right-of-use assets during the year ended 31 March 2022 was Ł131 million (2021: Ł70 million, 2020: Ł83 million). The Group has entered into a sale and leaseback transaction in the current year. The transfer of the Group asset did not satisfy the sale requirements of IFRS 15 and, therefore, is still retained on the Group balance sheet. A financial liability was recognised equal to the transfer proceeds of Ł33 million in accordance with IFRS 9 in borrowings in note 25. The lessee accounting principles described above under IFRS 16 have been applied to the leaseback transaction, with the right of use asset of Ł94 million recognised in land and buildings. Lease liabilities The maturity analysis of the contractual undiscounted cash flows is as follows: As at 31 March (Ł millions) 2022 2021 2020 Less than one year 103 103 112 Between one and five years 280 286 298 More than five years 561 451 493 Total undiscounted lease liabilities 944 840 903 Included in undiscounted lease liability maturities above is Ł1 million (2021: Ł15 million, 2020: Łnil) in relation to leases committed but not yet commenced at the balance sheet date. The following amounts are included in the consolidated balance sheet: As at 31 March (Ł millions) 2022 2021 2020 Current lease liabilities 62 65 73 Non-current lease liabilities 508 454 468 Total lease liabilities 570 519 541 The following amounts are recognised in the consolidated income statement: Year ended 31 March (Ł millions) 2022 2021 2020 Interest expense on lease liabilities 45 44 45 Expenses related to short-term leases 10 9 13 Expenses related to low-value assets, excluding 9 7 7 short-term leases of low-value assets Expense/(credit) in lease payments arising from COVID-19 rent concessions 1 (3)—Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 135    

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FINANCIAL STATEMENTS The following amounts are recognised in the consolidated cash flow statement: Year ended 31 March (Ł millions) 2022 2021 2020 Cash payments for the principal portion of lease 71 79 72 liabilities (within ‘payments of lease obligations’) Cash payments for interest expense related to lease liabilities (within 45 44 45 ‘finance expenses and fees paid’) Total cash outflow for leases 116 123 117 Leases as a lessor The majority of the leases where the Group is a lessor are in The maturity analysis of lease payments, showing the relation to vehicles. The Group classifies these as operating undiscounted lease payments to be received after the reporting leases, because they do not transfer substantially all of the risks date, are as follows: and rewards incidental to the ownership of the assets. As at 31 March (Ł millions) 2022 2021 2020 Less than one year 4 3 5 Between one and five years 3 2 2 More than five years 12 11 11 Total undiscounted lease payments to be received 19 16 18 37 Segmental reporting Operating segments are defined as components of the Group manufacture and marketing of vehicles including financing about which separate financial information is available that is thereof, as well as sale of related parts and accessories and evaluated regularly by the chief operating decision-maker, or services from which the Group derives its revenues. The Group decision-making group, in deciding how to allocate resources and has only one operating segment, so no separate segment report in assessing performance. is given. The Group operates in the automotive segment. The automotive The geographic spread of sales by customer location and nonsegment includes all activities relating to design, development, current assets is as disclosed below: Rest of Rest of (Ł millions) UK US China Total Europe World 31 March 2022 Revenue 3,164 4,320 3,248 3,412 4,176 18,320 Non-current assets 10,311 60 982 203 131 11,687 31 March 2021 Revenue 3,790 4,664 3,563 3,153 4,561 19,731 Non-current assets 10,932 53 1,047 218 141 12,391 31 March 2020 Revenue 4,724 5,614 4,757 4,601 3,288 22,984 Non-current assets 12,028 58 1,196 209 169 13,660

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38 Notes to the Consolidated Cash Flow Statement (A) Reconciliation of loss for the year to cash generated from operating activities Year ended 31 March (Ł millions) Note 2022 2021 2020 Loss for the year (822) (1,100) (469) Adjustments for: Depreciation and amortisation 1,944 1,976 1,910 Write-down of tangible assets 10 3 —Write-down of intangible assets 10 9 40 -(Profit)/loss on disposal of assets 13 (1) (1) 20 Foreign exchange and fair value loss/(gain) on loans 13 141 (314) 135 Income tax expense 14 367 239 47 Finance expense (net) 12 369 251 209 Finance income 12 (9) (11) (52) Foreign exchange (gain)/loss on economic hedges of loans 13 (91) 143 (29) Foreign exchange gain on derivatives 13—(14) (15) Foreign exchange loss/(gain) on balance sheet revaluation 89 (272) 122 Foreign exchange (gain)/loss on other restricted deposits (2) 1 2 Foreign exchange (gain)/loss on short-term deposits (2) 46 (14) Foreign exchange (gain)/loss on cash and cash equivalents (99) 162 (58) Unrealised (gain)/loss on commodities 13 (48) (137) 78 (Gain)/loss on matured revenue hedges—(6) 81 Share of loss of equity accounted investments 15 18 41 114 Fair value (gain)/loss on equity investments 13 (4) (2) 43 Exceptional items 4 43 1,523 29 Other non-cash adjustments 3 (5) 2 Cash flows from operating activities before changes in assets and liabilities 1,908 2,560 2,155 Trade receivables 154 (61) 541 Other financial assets 8 (35) 44 Other current assets (13) 54 112 Inventories 254 459 147 Other non-current assets (433) 397 (420) Accounts payable (1,166) 11 (652) Other current liabilities 27 (53) 49 Other financial liabilities (95) (130) (19) Other non-current liabilities and retirement benefit obligation 287 (477) 355 Provisions (359) (189) 87 Cash generated from operations 572 2,536 2,399 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 137    

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FINANCIAL STATEMENTS (B) Reconciliation of movements of liabilities to cash flows arising from financing activities Lease Interest (Ł millions) Borrowings Total obligations accrued Balance at 1 April 2019 4,480 31 33 4,544 Cash flows Proceeds from issue of financing 1,602 — 1,602 Repayment of financing (939) (72)—(1,011) Arrangement fees paid (9) — (9) Interest paid—(45) (185) (230) Non-cash movements Adjustment on initial application of IFRS 16—499—499 Issue of new finance leases—79—79 Interest accrued—45 214 259 Reclassification of long-term debt — —Foreign exchange 148 4 3 155 Fee amortisation 10 — 10 Reclassification of long-term debt fees — —Long-term borrowings revaluation in hedge reserve 11 — 11 Fair value adjustment on loans 40 — 40 Balance at 31 March 2020 5,343 541 65 5,949 Cash flows Proceeds from issue of financing 1,953 — 1,953 Repayment of financing (749) (79)—(828) Arrangement fees paid (11) — (11) Interest paid—(44) (249) (293) Non-cash movements Issue of new leases—71—71 Interest accrued—44 271 315 Reclassification of long-term debt — —Foreign exchange (323) (14) (3) (340) Fee amortisation 11 — 11 Fair value adjustment on loans (46) — (46) Balance at 31 March 2021 6,178 519 84 6,781 Cash flows Proceeds from issue of financing 2,095 — 2,095 Repayment of financing (1,347) (71)—(1,418) Arrangement fees paid (13) — (13) Interest paid—(45) (322) (367) Non-cash movements Issue of new leases—136—136 Lease terminations—(27)—(27) Interest accrued—45 331 376 Foreign exchange 169 13 2 184 Fee amortisation 11 — 11 Fair value adjustment on loans (66) — (66) Balance at 31 March 2022 7,027 570 95 7,692 Included within ‘finance expenses and fees paid’ in the consolidated cash flow statement is Ł22 million (2021: Ł9 million, 2020: Ł25 million) of cash interest paid relating to other assets and liabilities not included in the reconciliation above. 39 Related party transactions Limited and subsidiaries, joint ventures and associates of Tata Motors Limited. The Group routinely enters into transactions Tata Sons Private Limited is a company with significant influence with its related parties in the ordinary course of business, over the Group’s ultimate parent company Tata Motors Limited. including transactions for the sale and purchase of products with The Group’s related parties therefore include Tata Sons Private its joint ventures, and IT and consultancy services received from Limited, subsidiaries and joint ventures of Tata Sons Private subsidiaries of Tata Sons Private Limited.    

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All transactions with related parties are conducted under normal The table below summarises related party transactions and terms of business and all amounts outstanding are unsecured balances not eliminated in the consolidated financial statements. and will be settled in cash. Transactions and balances with the Group’s own subsidiaries are eliminated on consolidation. Tata Sons Private Immediate or ultimate parent Associates and (Ł millions) Joint ventures Limited, its subsidiaries and its subsidiaries, joint their subsidiaries and joint ventures ventures and associates 31 March 2022 Sale of products 263—2 26 Purchase of goods 39 — 82 Services received — 152 72 Services rendered 97 — 1 Trade and other receivables 30 — 25 Accounts payable — 16 30 31 March 2021 Sale of products 284—2 15 Purchase of goods — 1 72 Services received—1 123 68 Services rendered 111 — 1 Trade and other receivables 48—1 32 Accounts payable — 13 43 31 March 2020 Sale of products 217—2 54 Purchase of goods — 1 120 Services received—3 150 91 Services rendered 111 — 1 Dividends received 67 — -Investments in the year 67 6 —Trade and other receivables 67—1 20 Accounts payable — 11 48 Compensation of key management personnel Year ended 31 March (Ł millions) 2022 2021 2020 Short-term benefits 20 15 10 Post-employment benefits—2 -Other long-term employee benefits (1) 2 3 Compensation for loss of office 5—1 Total compensation of key management personnel 24 19 14 40 Ultimate parent company and parent company of Copies of the Tata Motors Limited, India consolidated financial larger group statements can be obtained from the Company Secretary, Tata Motors Limited, Bombay House, 24, Homi Mody Street, The immediate parent undertaking is TML Holdings Pte. Mumbai-400001, India. Ltd. (Singapore), which is the parent for the smallest group to consolidate these financial statements. The ultimate parent 41 Subsequent events undertaking and controlling party is Tata Motors Limited, India, which is the parent of the largest group to consolidate these There have been no material subsequent events between the financial statements. balance sheet date and the date of signing this report. Copies of the TML Holdings Pte. Ltd. (Singapore) consolidated financial statements can be obtained from the Company Secretary, TML Holdings Pte. Ltd., 9 Battery Road #15-01 MYP Centre, Singapore 049910. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 139

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FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY BALANCE SHEET As at 31 March (Ł millions) Note 2022 2021 2020 Non-current assets Investments 42 1,655 1,655 1,655 Other financial assets 43 5,288 4,964 4,770 Other non-current assets 44 4—1 Total non-current assets 6,947 6,619 6,426 Current assets Other financial assets 43 1,727 1,074 958 Other current assets 44 4 1 1 Cash and cash equivalents ——Total current assets 1,731 1,075 959 Total assets 8,678 7,694 7,385 Current liabilities Other financial liabilities 46 85 82 65 Deferred finance income 6 1 2 Short-term borrowings 47 1,180 524 424 Current tax liabilities 4 5 5 Total current liabilities 1,275 612 496 Non-current liabilities Long-term borrowings 47 5,280 4,959 4,759 Deferred finance income 37 33 34 Total non-current liabilities 5,317 4,992 4,793 Total liabilities 6,592 5,604 5,289 Equity attributable to equity holders of the parent Ordinary shares 48 1,501 1,501 1,501 Capital redemption reserve 48 167 167 167 Retained earnings 418 422 428 Equity attributable to equity holders of the parent 2,086 2,090 2,096 Total liabilities and equity 8,678 7,694 7,385 The notes on pages 142 to 153 are an integral part of these financial statements. The Company has elected to take the exemption under section They were signed on its behalf by: 408 of the Companies Act 2006 from presenting the parent company income statement. The loss for the Company for the year was Ł4 million (2021: loss of Ł6 million, 2020: loss of Ł21 million). THIERRY BOLLORÉ These parent company financial statements were approved by CHIEF EXECUTIVE OFFICER the JLR plc Board and authorised for issue on 13 June 2022. COMPANY REGISTERED NUMBER: 06477691    

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PARENT COMPANY STATEMENT OF CHANGES IN EQUITY Capital Ordinary share Retained (£ millions) redemption Total equity capital earnings reserve Balance at 1 April 2021 1,501 167 422 2,090 Loss for the year — (4) (4) Total comprehensive expense — (4) (4) Dividend — — Balance at 31 March 2022 1,501 167 418 2,086 Balance at 1 April 2020 1,501 167 428 2,096 Loss for the year — (6) (6) Total comprehensive expense — (6) (6) Dividend — — Balance at 31 March 2021 1,501 167 422 2,090 Balance at 1 April 2019 1,501 167 449 2,117 Loss for the year — (21) (21) Total comprehensive expense — (21) (21) Dividend — — Balance at 31 March 2020 1,501 167 428 2,096 The notes on pages 142 to 153 are an integral part of these financial statements. PARENT COMPANY CASH FLOW STATEMENT Year ended 31 March (£ millions) 2022 2021 restated* 2020 restated* Cash flows from operating activities Loss for the year (4) (6) (21) Adjustments for: Income tax expense — 1 Allowances for other financial assets 3 7 24 Finance income (319) (259) (223) Finance expense 320 257 222 Cash flows (used in)/generated from operating activities before changes in —(1) 3 assets and liabilities Other financial assets—3 (5) Other current liabilities 4 (2)—Net cash used in operating activities 4—(2) Cash flows from investing activities Finance income received 323 236 198 Loans made to subsidiaries (1,417) (1,034) (1,486) Repayments of loans by subsidiaries 558 425 826 Dividends received —— Net cash used in investing activities (536) (373) (462) Cash flows from financing activities Finance expenses and fees paid (327) (236) (196) Proceeds from issuance of borrowings 1,417 1,034 1,486 Repayment of borrowings (558) (425) (826) Net cash generated from financing activities 532 373 464 Net change in cash and cash equivalents —— Cash and cash equivalents at beginning of year ——Cash and cash equivalents at end of year ——*The Company has been presenting cash flows relating to loans to its subsidiaries as “cash flows from operating activities”. The Company has changed the presentation of these cash flows to be “cash flows from investing activities” from the year ended 31 March 2022 as the directors consider this presentation to better reflect the underlying nature of the transactions, and accordingly reclassified the comparative amounts for the prior periods. The notes on pages 142 to 153 are an integral part of these financial statements. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 141

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FINANCIAL STATEMENTS NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS 42 Investments Investments consist of the following: As at 31 March (Ł millions) 2022 2021 2020 Cost of unquoted equity investments at beginning and end of year 1,655 1,655 1,655 The Company has not made any investments or disposals of The Company has the following 100 per cent direct interest in investments in the year. the ordinary shares of a subsidiary undertaking: Subsidiary undertaking Principle place of business and country Registered office address of incorporation Abbey Road, Whitley, Coventry, CV3 4LF, Jaguar Land Rover Holdings Limited England and Wales England The shareholding above is recorded at acquisition value in the Company’s accounts. Details of the indirect subsidiary undertakings are as follows: Name of company Shareholding Principle place of business and Registered office country of incorporation address Jaguar Land Rover Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England Jaguar Land Rover North America, LLC. 100% USA 100 Jaguar Land Rover Way, Mahwah, NJ 07495, USA Jaguar Land Rover Deutschland GmbH 100% Germany Campus Kronberg 7, 61476, Kronberg im Taunus, Germany Jaguar Land Rover Belux N.V. 100% Belgium Generaal Lemanstraat 47, 2018 Antwerpen, Belgium Jaguar Land Rover Austria GmbH 100% Austria Siezenheimer Strasse 39a, 5020 Salzburg, Austria Jaguar Land Rover Italia SpA 100% Italy Via Alessandro Marchetti, 105—00148, Roma, Italy Jaguar Land Rover Australia Pty Ltd 100% Australia 189 O’Riordan Street, Mascot, 2020, NSW, Australia Jaguar Land Rover Espana SL 100% Spain Torre Picasso, Plaza Pablo Ruiz Picasso, 1 – Planta 42, 28020 Madrid, Spain Jaguar Land Rover Nederland BV 100% Holland PO Box 40, Stationsweg 8, 4153 RD Beesd, Netherlands Jaguar Land Rover Portugal -Veiculos e Pecas, Lda. 100% Portugal Rua. Do Pólo Sul Nº2—3ºB-3, Parque das Naçoes, 1990- 273, Lisboa, Portugal Jaguar Land Rover (China) Investment Co., Ltd 100% China 11F, No.06 (Building D) The (formerly Jaguar Land Rover Automotive Trading New Bund World Trade (Shanghai) Co. Ltd) Center (Phase II), Lane 227 Dongyu Road, Pudong New District, Shanghai 200126, China

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Name of company Shareholding Principle place of business and Registered office address country of incorporation Shanghai Jaguar Land Rover Automotive Service Co. Ltd 100% China 11F, No.06 (Building D) The New Bund World Trade Center (Phase II), Lane 227 Dongyu Road, Pudong New District, Shanghai 20012, China Jaguar Land Rover Japan Limited 100% Japan 3-13 Toranomon 4-chome, Minato-ku, Tokyo, Japan, 45 Jaguar Land Rover Korea Co. Limited 100% Korea 25F West Mirae Asset Center 1 Building 67 Suha-dong, Jung-gu Seoul 100-210, Korea Jaguar Land Rover Canada ULC 100% Canada 75 Courtneypark Drive West, Unit 3 Mississauga, ON L5W 0E3,Canada Jaguar Land Rover France SAS 100% France Z.A. Kleber – Batiment Ellington, 165 Boulevard de Valmy, 92706 Colombes, Cedex, France Jaguar e Land Rover Brasil Indústria e Comércio de 100% Brazil Avenida Ibirapuera 2.332, Veículos LTDA Torre I—10º andar- Moema, 04028-002, São Paulo, SP, Brazil Jaguar Land Rover Limited Liability Company 100% Russia 28B, Building 2 Mezhdunarodnoe Shosse 141411, Moscow, Russian Federation Jaguar Land Rover (South Africa) Holdings Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England Jaguar Land Rover (South Africa) (Pty) Limited 100% South Africa Simon Vermooten Road, Silverton, Pretoria 0184, South Africa Jaguar Land Rover India Limited 100% India Nanavati Mahalaya, 3rd floor, 18, Homi Mody Street, Mumbai, Maharashtra, India 400001 Daimler Transport Vehicles Limited (dormant) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England S S Cars Limited (dormant) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England The Lanchester Motor Company Limited (dormant) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England The Daimler Motor Company Limited (dormant) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England Jaguar Land Rover Pension Trustees Limited (dormant) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England JLR Nominee Company Limited (non-trading) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England Jaguar Cars Limited (dormant) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England Land Rover Exports Limited (non-trading) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England Land Rover Ireland Limited (non-trading) 100% Ireland c/o LK Shields Solicitors, 39/40 Upper Mount Street, Dublin 2, Ireland Jaguar Cars South Africa (Pty) Ltd (dormant) 100% South Africa Simon Vermooten Road, Silverton, Pretoria 0184, South Africa Jaguar Land Rover Slovakia s.r.o. 100% Slovakia Horné lúky, 4540/1, 949 01 Nitra, Slovakia Jaguar Land Rover Singapore Pte. Ltd 100% Singapore 138 Market Street, CapitaGreen, Singapore, 048946 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 143    

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FINANCIAL STATEMENTS Name of company Shareholding Principle place of business and Registered office address country of incorporation Jaguar Racing Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England In-Car Ventures Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England InMotion Ventures Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England InMotion Ventures 2 Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England InMotion Ventures 3 Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England Jaguar Land Rover Colombia SAS (dormant) 100% Colombia CL 67735 OFE, 1204 Bogotan Cundinamarka 1 3192 900, Colombia Jaguar Land Rover México, S.A.P.I. de C.V. 100% Mexico Av. Javier Barros Sierra No.540 Piso 7 Oficina 703, Col. Santa Fe la Fe Del., Alvaro Obregón, México, D.F. C.P. 01210 Jaguar Land Rover Servicios México, S.A. de C.V. 100% Mexico Av. Javier Barros Sierra No.540 Piso 7 Oficina 703, Col. Santa Fe la Fe Del., Alvaro Obregón, México, D.F. C.P. 01210 Jaguar Land Rover Taiwan Company LTD 100% Taiwan 12F, No. 40, Sec. 1, Chengde Road, Datong Dist., Taipei, City 103, Taiwan (R.O.C.) Jaguar Land Rover Ireland (Services) Limited 100% Ireland C/o LK Shields Solicitors 39/40 Upper Mount Street Dublin 2 Ireland Jaguar Land Rover Classic USA LLC (dormant) 100% USA 251 Little Falls Drive, Wilmington, Delaware, USA Jaguar Land Rover Classic Deutschland GmbH 100% Germany Ringstraße 38, 45219 Essen, Germany Jaguar Land Rover Hungary KFT 100% Hungary Regus Capital Square, Vaci ut 76, 1133, Budapest, Hungary Jaguar Land Rover (Ningbo) Trading Co., Ltd. 100% China Office Building 12, No.1 Meishan Salt, Beilun District, Ningbo, Zhejiang Province, China Jaguar Land Rover Ventures Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England Bowler Motors Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England Details of the indirect holdings in equity accounted investments are given in note 15 to the consolidated financial statements.

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43 Other financial assets As at 31 March (Ł millions) 2022 2021 2020 Non-current Receivables from subsidiaries 5,288 4,964 4,770 Current Receivables from subsidiaries 1,727 1,074 958 Ł5,288 million (2021: Ł4,964 million, 2020: Ł4,770 million) of under terms matching the external interest-bearing loans and non-current receivables from subsidiaries and Ł1,260 million borrowings given in note 47. (2021: Ł599 million, 2020: Ł487 million) of current receivables from subsidiaries comprise of loans to indirect subsidiaries 44 Other assets As at 31 March (Ł millions) 2022 2021 2020 Non-current Prepaid expenses 4—1 Current Prepaid expenses 4 1 1 45 Deferred tax assets and liabilities As at 31 March 2022, 2021 and 2020 the Company has recognised no deferred tax assets or liabilities. 46 Other financial liabilities As at 31 March (Ł millions) 2022 2021 2020 Current Interest accrued 84 79 62 Other 1 3 3 Total current other financial liabilities 85 82 65 47 Interest-bearing loans and borrowings As at 31 March (Ł millions) 2022 2021 2020 EURO MTF listed debt 4,020 3,922 3,518 Bank loans 1,260 1,037 1,241 Long-term borrowings 5,280 4,959 4,759 Current portion of EURO MTF listed debt 779 399 299 Current portion of long-term bank loans 401 125 125 Short-term borrowings 1,180 524 424 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 145

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FINANCIAL STATEMENTS Euro MTF listed debt Details of the tranches of the bond repaid in the year ended 31 March 2020 are as follows: The bonds are listed on the Luxembourg Stock Exchange multilateral trading facility (“EURO MTF”) market. • $500 million Senior Notes due 2019 at a coupon of 4.250 per cent per annum – issued October 2014 Details of the tranches of the bonds outstanding at 31 March • $500 million Senior Notes due 2020 at a coupon of 3.500 2022 are as follows: per cent per annum – issued March 2015 • $500 million Senior Notes due 2023 at a coupon of 5.625 Syndicated loan per cent per annum – issued January 2013 • Ł400 million Senior Notes due 2023 at a coupon of 3.875 In October 2018, a $1 billion syndicate loan was issued with a per cent per annum – issued February 2015 coupon rate of LIBOR + 1.900 per cent per annum, due in the • €650 million Senior Notes due 2024 at a coupon of 2.200 following tranches: per cent per annum – issued January 2017 • $500 million Senior Notes due 2027 at a coupon of 4.500 • $199 million due October 2022 per cent per annum – issued October 2017 • $798 million due January 2025 • €500 million Senior Notes due 2026 at a coupon of 4.500 per cent per annum – issued September 2018 $3 million of this loan was repaid during the year ended 31 March • €500 million Senior Notes due 2024 at a coupon of 5.875 2022. per cent per annum – issued November 2019 • €500 million Senior Notes due 2026 at a coupon of 6.875 UK export finance facility per cent per annum – issued November 2019 • $700 million Senior Notes due 2025 at a coupon of 7.750 During the year ended 31 March 2020, the Company entered per cent per annum – issued October 2020 and drew down in full a Ł625 million five-year amortising loan • $650 million Senior Notes due 2028 at a coupon of 5.875 facility backed by a Ł500 million guarantee from UK Export per cent per annum – issued December 2020 Finance. During the year ended 31 March 2022, the Company • $500million Senior Notes due 2029 at a coupon of 5.500 repaid Ł125 million (2021: Ł125 million, 2020: Ł52 million) of per cent per annum – issued July 2021 this loan. During the year ended 31 March 2022, the Company • €500 million Senior Notes due 2028 at a coupon of 4.500 entered and drew down in full an additional Ł625 million five-per cent per annum – issued July 2021 year amortising loan facility. The Company repaid Ł31 million of this additional facility in the year ended 31 March 2022 (2021, Details of the tranches of the bond repaid in the year ended 31 2020: Łnil). March 2022 are as follows: The contractual cash flows of interest-bearing debt (excluding • Ł400 million Senior Notes due 2022 at a coupon of 5.000 leases) are set out below, including estimated interest payments per cent per annum – issued January 2014 and assuming the debt will be repaid at the maturity date: Details of the tranches of the bond repaid in the year ended 31 March 2021 are as follows: • Ł300 million Senior Notes due 2021 at a coupon of 2.750 per cent per annum – issued January 2017 As at 31 March (Ł millions) 2022 2021 2020 Due in 1 year or less 1,494 798 660 2nd and 3rd years 2,508 2,134 2,035 4th and 5th years 1,899 2,326 2,141 More than 5 years 1,800 1,377 1,435 Total contractual cash flows 7,701 6,635 6,271    

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48 Capital and reserves As at 31 March (Ł millions) 2022 2021 2020 Authorised, called up and fully paid 1,500,642,163 ordinary shares of Ł1 each 1,501 1,501 1,501 Total ordinary share capital 1,501 1,501 1,501 The holders of ordinary shares are entitled to receive dividends The capital redemption reserve of Ł167 million (2021, 2020: as declared from time to time and are entitled to one vote per Ł167 million) was created in March 2011 on the cancellation of share at meetings of the Company. share capital. 49 Dividends During the year ended 31 March 2022 no ordinary share dividends were proposed or paid (2021, 2020: Łnil). 50 Commitments and contingencies The Company had no commitments or contingencies at 31 March 2022, 2021 or 2020. 51 Capital management As at 31 March (Ł millions) 2022 2021 2020 Long-term debt 5,280 4,959 4,759 Short-term debt 1,180 524 424 Total debt 6,460 5,483 5,183 Equity attributable to shareholder 2,086 2,090 2,096 Total capital 8,546 7,573 7,279 52 Financial instruments This section gives an overview of the significance of financial are disclosed in note 35 to the consolidated financial statements. instruments for the Company and provides additional information on balance sheet items that contain financial instruments. (A) Financial assets and liabilities The details of significant accounting policies, including the The following table shows the carrying amounts and fair value criteria for recognition, the basis of measurement and the basis of each category of financial assets and liabilities as at 31 March on which income and expenses are recognised, in respect of each 2022: class of financial asset, financial liability and equity instrument, Amortised cost and other (Ł millions) Total carrying value Total fair value financial liabilities Other financial assets—current 1,727 1,727 1,726 Other financial assets—non-current 5,288 5,288 5,189 Total financial assets 7,015 7,015 6,915 Other financial liabilities—current 85 85 85 Short-term borrowings 1,180 1,180 1,179 Long-term borrowings 5,280 5,280 5,181 Total financial liabilities 6,545 6,545 6,445 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 147    

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FINANCIAL STATEMENTS The following table shows the carrying amounts and fair value of each category of financial assets and liabilities as at 31 March 2021: (Ł millions) Amortised cost and other Total carrying value Total fair value financial liabilities Other financial assets—current 1,074 1,074 1,074 Other financial assets—non-current 4,964 4,964 4,964 Total financial assets 6,038 6,038 6,038 Other financial liabilities—current 82 82 82 Short-term borrowings 524 524 535 Long-term borrowings 4,959 4,959 5,122 Total financial liabilities 5,565 5,565 5,739 The following table shows the carrying amounts and fair value of each category of financial assets and liabilities as at 31 March 2020: (Ł millions) Amortised cost and other Total carrying value Total fair value financial liabilities Other financial assets—current 958 958 958 Other financial assets—non-current 4,770 4,770 4,770 Total financial assets 5,728 5,728 5,728 Other financial liabilities—current 65 65 65 Short-term borrowings 424 424 408 Long-term borrowings 4,759 4,759 3,846 Total financial liabilities 5,248 5,248 4,319 Fair value hierarchy Fair values of cash and cash equivalents and other financial Financial instruments held at fair value are required to be assets and liabilities are assumed to approximate to cost due to measured by reference to the following levels: the short-term maturing of the instruments and as the impact of discounting is not significant. • Quoted prices in an active market (Level 1): This level of hierarchy includes financial instruments that are measured by Management uses its best judgement in estimating the reference to quoted prices (unadjusted) in active markets for fair value of its financial instruments. However, there are identical assets or liabilities; inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates • Valuation techniques with observable inputs (Level 2): This level presented above are not necessarily indicative of all the amounts of hierarchy includes financial assets and liabilities measured that the Company could have realised in a sales transaction using inputs other than quoted prices included within Level 1 as of respective dates. The estimated fair value amounts as that are observable for the asset or liability, either directly (i.e. as of 31 March 2022, 2021 and 2020 have been measured as of prices) or indirectly (i.e. derived from prices); and the respective dates. As such, the fair values of these financial                instruments subsequent to the respective reporting dates may • Valuation techniques with significant unobservable inputs (Level be different from the amounts reported at each year end. 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market (B) Financial risk management                data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that The Company is exposed to foreign currency exchange rate, are neither supported by prices from observable current market interest rate, liquidity and credit risks. The Company has a risk transactions in the same instrument nor based on available management framework in place that monitors all of these risks market data.                as discussed below. This framework is approved by the JLR plc Board. There has been no change in the valuation techniques adopted or any transfers between fair value levels in either current or prior periods as presented.

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Foreign currency exchange rate risk The fluctuation in foreign currency exchange rates may have a The Company’s operations are subject to risks arising from potential impact on the balance sheet, statement of changes fluctuations in exchange rates. The risks primarily relate to in equity and cash flow statement where any transaction fluctuations in US Dollar and Euro against Sterling as the references more than one currency or where assets or liabilities Company has US Dollar and Euro assets and liabilities and a GBP are denominated in a currency other than the functional currency functional currency. of the Company.    The following table sets forth information relating to foreign As at 31 March 2022, 2021 and 2020, there are no designated currency exposure as at 31 March 2022: cash flow hedges. (Ł millions) US Dollar Euro Financial assets 2,980 2,282 Financial liabilities (2,974) (2,282) Net exposure asset 6—A 10 per cent appreciation/depreciation of the US Dollar or Euro The following table sets forth information relating to foreign would result in an increase/decrease in the Company’s net profit currency exposure as at 31 March 2021: before tax and net assets by approximately Ł1 million and Łnil respectively. (Ł millions) US Dollar Euro Financial assets 2,480 1,861 Financial liabilities (2,477) (1,861) Net exposure asset 3—A 10 per cent appreciation/depreciation of the US Dollar or The following table sets forth information relating to foreign Euro would result in an increase/decrease in the Company’s net currency exposure as at 31 March 2020: profit before tax and net assets by approximately Łnil and Łnil respectively. (Ł millions) US Dollar Euro Financial assets 2,033 2,180 Financial liabilities (2,033) (2,180) Net exposure asset — A 10 per cent appreciation/depreciation of the US Dollar or profit before tax and net assets by approximately Łnil and Łnil Euro would result in an increase/decrease in the Company’s net respectively. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 149    

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FINANCIAL STATEMENTS Interest rate risk assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding Interest rate risk is the risk that changes in market interest as at that date. The year-end balances are not necessarily rates will lead to changes in interest income and expense for the representative of the average debt outstanding during the year. Company. Liquidity rate risk The Company is presently funded with long-term fixed interest rate borrowings and long-term variable-rate borrowings. The Liquidity risk is the risk that the Company will not be able to Company is also subject to variable interest rates on certain meet its financial obligations as they fall due. other debt obligations. The Company’s policy on liquidity risk is to ensure that sufficient As at 31 March 2022, net financial assets of Ł465 million (2021: borrowing facilities are available to fund ongoing operations Ł436 million, 2020: Ł595 million) were subject to a variable without the need to carry significant net debt over the medium interest rate. An increase/decrease of 100 basis points in interest term. The quantum of committed borrowing facilities available rates at the balance sheet date would result in an impact of Ł5 to the Company is reviewed regularly and is designed to exceed million (2021: Ł4 million, 2020: Ł6 million). forecast peak gross debt levels. The risk estimates provided assume a parallel shift of 100 basis The following are the undiscounted contractual maturities of points interest rate across all yield curves. This calculation also financial liabilities, including estimated interest payments: As at 31 March 2022 (Ł millions) Carrying Contractual 1 year 1 to <2 2 to <5 5 years amount cash flows or less years years and over Financial liabilities Long-term borrowings and accrued interest 5,347 6,447 246 1,045 3,356 1,800 Short-term borrowings and accrued interest 1,188 1,228 1,228 — -Other financial liabilities 9 28 22 6 — Total contractual maturities 6,545 7,703 1,496 1,051 3,356 1,800 As at 31 March 2021 (Ł millions) Carrying Contractual 1 year 1 to <2 2 to <5 5 years amount cash flows or less years years and over Financial liabilities Long-term borrowings and accrued interest 4,959 6,054 221 1,263 3,193 1,377 Short-term borrowings and accrued interest 524 557 557 — -Other financial liabilities 82 28 22 6 — Total contractual maturities 5,565 6,639 800 1,269 3,193 1,377 As at 31 March 2020 (Ł millions) Carrying Contractual 1 year 1 to <2 2 to <5 5 years amount cash flows or less years years and over Financial liabilities Long-term borrowings and accrued interest 4,759 5,811 215 737 3,424 1,435 Short-term borrowings and accrued interest 424 434 434 — -Other financial liabilities 65 34 19 11 4—Total contractual maturities 5,248 6,279 668 748 3,428 1,435 Credit risk Financial assets Financial instruments that are subject to concentrations of credit None of the Company’s cash equivalents or other financial assets, risk consist of loans to subsidiaries. are past due or impaired. Regarding other financial assets that are neither past due nor impaired, there were no indications as Exposure to credit risk at 31 March 2022 (2021, 2020: no indications) that defaults in payment obligations will occur. However, as required under IFRS The carrying amount of financial assets represents the maximum 9, the Company has assessed other financial assets for expected credit exposure. credit losses.    

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These financial assets are loan receivables from subsidiaries and risk, the Company has assessed these based on a 12-month the Company notes that there is no history of default on such expected credit loss. The impairment of the loan receivables due arrangements. As there has been no significant increase in credit to the requirements under IFRS 9 are set out below: As at 31 March 2022 2022 2022 Net 2021 2021 2021 Net 2020 2020 2020 Net (£ millions) Gross Impairment carrying Gross Impairment carrying Gross Impairment carrying value value value Receivables from subsidiaries—current 1,734 (7) 1,727 1,077 (3) 1,074 960 (2) 958 Receivables from subsidiaries—non-current 5,314 (26) 5,288 4,992 (28) 4,964 4,792 (22) 4,770 Total 7,048 (33) 7,015 6,069 (31) 6,038 5,752 (24) 5,728 Movement in allowances for expected credit losses of financial assets Year ended 31 March (£ millions) 2022 2021 2020 At beginning of year 31 24 -Charged during year 2 7 24 At end of year 33 31 24 53 Reconciliation of movements of liabilities to cash flows arising from financing activities (£ millions) Short-term borrowings Long-term borrowings Balance at 1 April 2019 767 3,594 Proceeds from issue of financing—1,486 Repayment from issue of financing (826) -Reclassification of long term debt 477 (477) Foreign exchange 6 155 Arrangement fees paid (1) (8) Fee amortisation 2 8 Reclassification of long term debt fees (1) 1 Balance at 31 March 2020 424 4,759 Proceeds from issue of financing—1,034 Repayment from issue of financing (425) -Reclassification of long term debt 525 (525) Foreign exchange—(309) Arrangement fees paid—(11) Fee amortisation—11 Balance at 31 March 2021 524 4,959 Proceeds from issue of financing—1,417 Repayment from issue of financing (557) (1) Reclassification of long term debt 1,200 (1,200) Foreign exchange 13 105 Arrangement fees paid—(13) Fee amortisation—13 Balance at 31 March 2022 1,180 5,280 Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 151

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FINANCIAL STATEMENTS 54 Related party transactions Tata Sons Private Limited is a company with significant influence of Tata Motors Limited. The Company routinely enters into over the Company’s ultimate parent company Tata Motors transactions with these related parties in the ordinary course of Limited. The Company’s related parties therefore include Tata business. Sons Private Limited, subsidiaries and joint ventures of Tata Sons Private Limited and subsidiaries, associates and joint ventures The following table summarises related party balances: (Ł millions) With subsidiaries With immediate parent 31 March 2022 Loans to subsidiaries of the Company 7,015 -Loans from subsidiaries of the Company 43 31 March 2021 Loans to subsidiaries of the Company 6,038 -Loans from subsidiaries of the Company 34 31 March 2020 Loans to subsidiaries of the Company 5,728 -Loans from subsidiaries of the Company 36 Compensation of key management personnel Year ended 31 March (Ł millions) 2022 2021 2020 Short-term benefits 5 6 4 Post-employment benefits—1 -Other long-term employee benefits—1 1 Total compensation of key management personnel 5 8 5 Apart from the directors, the Company did not have any 31 March 2022, 2021 and 2020. All directors’ costs are fully employees and had no employee costs in the years ended recharged to Jaguar Land Rover Limited.    

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55 Auditor’s remuneration Copies of the TML Holdings Pte. Ltd. (Singapore) consolidated financial statements can be obtained from the Company Amounts receivable by the Company’s auditor and its associates Secretary, TML Holdings Pte. Ltd. 9 Battery Road #15-01 MYP in respect of services to the Company and its associates, other Centre, Singapore 049910. than the audit of the Company’s financial statements, have not been disclosed as the information is required instead to be Copies of the Tata Motors Limited, India consolidated financial disclosed on a consolidated basis in the consolidated financial statements can be obtained from the Company Secretary, statements. Tata Motors Limited, Bombay House, 24, Homi Mody Street, Mumbai-400001, India. 56 Ultimate parent company and parent company of the larger group 57 Subsequent events The immediate parent undertaking is TML Holdings Pte. Ltd. There have been no material subsequent events between the (Singapore), which is the parent for the smallest group to balance sheet date and the date of signing this report. consolidate these financial statements. The ultimate parent undertaking and controlling party is Tata Motors Limited, India, which is the parent of the largest group to consolidate these financial statements. Annual Report 2021/22 J A G U A R L A N D R O V E R A U T O M O T I V E P L C 153