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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the Month of November 2023

Commission File Number: 001-32294

 

 

 

LOGO

TATA MOTORS LIMITED

(Translation of registrant’s name into English)

 

 

BOMBAY HOUSE

24, HOMI MODY STREET,

MUMBAI 400 001, MAHARASHTRA, INDIA

Telephone # 91 22 6665 8282 Fax # 91 22 6665 7799

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ☐ No ☒

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ☐ No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g 3-2(b): Not Applicable

 

 

 


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TABLE OF CONTENTS

 

Item 1

   2024 FY Q2 Interim Financial Statements


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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

 

Tata Motors Limited
By:   /s/ Mr Maloy Kumar Gupta
Name:   Mr Maloy Kumar Gupta
Title:   Company Secretary

Dated: November 6, 2023


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LOGO   

Jaguar Land Rover Automotive plc

Interim Report

For the three and six-month period ended

30 September 2023

Company registered number: 06477691


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Group, Company, Jaguar Land Rover, JLR plc and JLR refers to Jaguar Land Rover Automotive plc and its subsidiaries. Note 2 to the Condensed consolidated interim financial statements defines a series of alternative performance measures some of which are stated below, along with certain abbreviations.

 

Adjusted EBITDA margin    measured as adjusted EBITDA as a percentage of revenue.
Adjusted EBIT margin    measured as adjusted EBIT as a percentage of revenue.
Net debt/cash    defined by the Company as cash and cash equivalents plus short-term deposits and other investments less total balance sheet borrowings.
Q2 FY24    3 months ended 30 September 2023

Q1 FY24

Q2 FY23

H1 FY24

H1 FY23

  

3 months ended 30 June 2023

3 months ended 30 September 2022

6-months ending 30 September 2023

6-months ending 30 September 2022

China Joint Venture    Chery Jaguar Land Rover Automotive Co., Ltd.

 

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Management’s discussion and analysis of financial condition and results of operations

Revenue was £6.9 billion in Q2 FY24, up 30% year-on-year from Q2 FY23 reflecting higher volume and model mix, favourable pricing and FX, offset partially by planned marketing, selling expenses and inflationary costs. Wholesale volumes (excluding China Joint Venture) of 96,817 up 28.6% year-on-year and up 3.8% compared to the prior quarter. The order book remained strong with over 168,000 client orders at quarter end, reducing from 185,000 at 30 June 2023 in line with expectations, as chip and other supply constraints continue to improve. Range Rover, Range Rover Sport and Defender demand remains particularly strong, representing 77% of the order book.

Market environment and business developments

 

 

Wholesale volumes continued to increase significantly year-on-year reflecting continuing improvement in supply, allowing JLR to deliver more vehicles to clients.

 

 

Strong order book of 168,000 client orders at quarter end, a reduction of c. 17,000 units since 30 June 2023 in line with expectations; 77% of the order book is for our three most profitable models, the Range Rover, Range Rover Sport and Defender.

 

 

Chip supply is expected to continue to gradually improve, and partnership agreements put in place with key chip suppliers are continuing to provide greater visibility over near-term supply. General supply is being monitored with the help of AI analytics tools. We expect production and wholesale volumes to increase in the second half of the financial year.

 

 

The UK has experienced market volatility during the quarter, with the GBP weakening vs USD by 3% from 30 June 2023 to 30 September 2023.

 

 

Interest rates (including the UK, USA and Europe) seem to have stabilised somewhat but are expected to remain at elevated levels for the foreseeable future. The impact of these higher rates will flow through into financing costs for consumers and could impact future demand.

Revenue and profits, quarter ending 30 September 2023

 

 

Revenue was £6.9 billion in Q2 FY24, up 30.4% from Q2 FY23 reflecting favourable volumes, model mix, pricing and FX

 

 

Adjusted EBITDA1 was £1,021 million (EBITDA margin: 14.9%) in Q2 FY24, up from £557 million (EBITDA margin: 10.6%) in Q2 FY23

 

 

Adjusted EBIT1 was £501 million (7.3%) in Q2 FY24, up from £54 million (1.0%) in Q2 FY23

 

 

The profit before tax and exceptional items was £442 million in Q2 FY24 compared to a loss before tax and exceptional items of £(173) million in Q2 FY23. The year-on-year improvement primarily reflects the following factors:

 

   

£425 million favourable volume and mix

 

   

£199 million favourable pricing, offset slightly by £(24) million higher variable marketing costs

 

   

£14 million reduction in material and manufacturing costs as a result of some lower commodity prices YoY, offset by a £(39) million increase in warranty costs

 

   

£(77) million increase in structural costs, reflecting SG&A (up £(96)m primarily for planned marketing & selling expenses) and depreciation and amortisation up by £(32)m, slightly offset by £51m favourable engineering & capitalisation

 

   

£107 million for FX and commodities, which includes £(251) million adverse impact of operational exchange caused by the strengthening of GBP year-on-year, largely offset by £210 million of favourable realised derivatives as a result of the hedging policy as well as £105 million of favourable revaluation and £43 million of unrealised commodity derivatives.

 

 

Profit after tax was £272 million (after a tax charge of £(170) million) for Q2 FY24, an improvement from a loss of £(98) million in Q2 FY23 (including a tax rebate of £75 million)

Revenue and profits, fiscal year to date

 

 

Revenue was £13.8 billion for the six months to 30 September 2023, up 42.4% compared to the same period a year ago reflecting improvements in volumes, model mix and pricing

 

 

Adjusted EBITDA2 was £2,144 million (EBITDA margin: 15.6%), up from £850 million (EBITDA margin: 8.8%) for the same period a year ago

 

 

Adjusted EBIT1 was £1,096 million (8.0%) for H1 FY24, up from a loss of £142 million (-1.5%) for the six months to 30 September 2022

 

1 

Please see note 2 of the financial statements for alternative performance measures

2 

Please see note 2 of the financial statements for alternative performance measures

 

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The profit before tax and exceptional items was £877 million for H1 FY24 compared to a loss before tax and exceptional items of £(697) million in the prior year. The year-on-year improvement primarily reflects the following factors:

 

   

£1,158 million favourable volume and mix

 

   

£372 million favourable pricing and lower variable marketing costs

 

   

£(46) million increase in material and manufacturing costs as a results of inflationary pressures, plus a £(57) million increase in warranty costs

 

   

£(195)m increase in structural costs, reflecting £(196) million increase in FME and selling, admin expenses up by £(85) million, £134 million favourable engineering and capitalisation, £(88)m depreciation and amortisation, £39 million increase in interest earned due to higher cash balances and market rates and £1 million of other.

 

   

£236 million for FX and commodities, including £230 million FX revaluation, £(316) million of the strengthening pound on revenue and costs offset by £247 million realised derivatives and £75 million unrealised commodities derivatives

 

 

Profit after tax was £595 million (after a tax charge of £(282) million) for the six month period to 30 September 2023, an improvement from a loss of £(580) million in H1 FY23 (including a tax charge of £38 million)

Cash flow

 

 

Free cash flow1 was £300 million in Q2 FY24 compared to negative free cashflow of £(15) million in Q2 FY23

 

 

Working capital movements in the quarter were £(76) million (vs £(1401) million in Q2 FY23) with a decrease in inventories of £184 million offset by higher receivables of £(176) million, a decrease in payables of £(80) million and other of £(4) million since 30 June 2023

 

 

Investment spending of £775 million in the quarter was up from £526 million in Q2 FY23 and includes £577 million of engineering spend, of which 64% was capitalised, and £197 million of capital investments

 

LOGO

 

 

1 

Restated from £(124)m due to a change in definition of free cash flow

 

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Sales volumes

Retail sales for the second quarter were 106,561 units, up 20.9% compared to the same quarter a year ago and up 4.5% compared to the prior quarter ending 30 June 2023.

Wholesale volumes in the period were 96,817 units (excluding the Chery Jaguar Land Rover China JV), up 28.6% compared to the same quarter a year ago, and up 3.8% compared to the quarter ended 30 June 2023, notwithstanding the annual two-week summer plant shutdown. Wholesale volumes for the first half of the financial year were 190,070, up 29.2% compared to the prior year.

 

LOGO

 

LOGO

Range Rover brand includes the models Range Rover, Range Rover Sport, Range Rover Velar and Range Rover Evoque. Defender brand includes Defender 90, Defender 110 and Defender 130. Discovery brand includes the models Discovery and Discovery Sport. Jaguar brand includes the Jaguar XE, XF, F-Type, E-Pace, F-Pace and I-Pace models.

 

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Funding and liquidity

Total cash and cash equivalents, deposits and investments at 30 September 2023 were £4.3 billion (£4.0 billion at 30 June 2023) comprising £4.1 billion of cash and cash equivalents and £236 million of short-term deposits and other investments. The cash and financial deposits include an amount of £442 million held in subsidiaries of Jaguar Land Rover outside of the United Kingdom. The cash in some of these jurisdictions may be subject to impediments to remitting cash to the UK other than through annual dividends.

The following table shows details of the Company’s financing arrangements at 30 September 2023:

 

£ millions

   Facility
amount
     Amount
outstanding
     Undrawn
amount
 

€650m 2.200% Senior Notes due Jan 2024

     563        563        —   

€500m 5.875% Senior Notes due Nov 2024

     433        433        —   

$700m 7.750% Senior Notes due Oct 2025

     572        572        —   

€500m 4.500% Senior Notes due Jan 20265

     433        433        —   

€500m 6.875% Senior Notes due Nov 2026

     433        433        —   

$500m 4.500% Senior Notes due Oct 2027

     408        408        —   

$650m 5.875% Senior Notes due Jan 20285

     531        531        —   

€500m 4.500% Senior Notes due Jul 2028

     433        433        —   

$500m 5.500% Senior Notes due Jul 20295

     408        408        —   

$800m Syndicated Loan due Jan 2025

     652        652        —   

China RMB 5,000m revolving facility due Mar 20241

     561        561        —   

UKEF amortising loan due Oct 2024

     135        135        —   

UKEF amortising loan due Dec 2026

     406        406        —   
  

 

 

    

 

 

    

 

 

 

Subtotal

     5,968        5,968        —   
  

 

 

    

 

 

    

 

 

 

Lease obligations2

     693        693        —   

Other3

     36        36        —   

Prepaid costs

     (19      (19      —   

Fair value adjustments4

     (136      (136      —   
  

 

 

    

 

 

    

 

 

 

Total

     6,542        6,542        —   
  

 

 

    

 

 

    

 

 

 

Undrawn RCF

     1,520        —         1,520  
  

 

 

    

 

 

    

 

 

 

Total including RCF

     8,062        6,542        1,520  
  

 

 

    

 

 

    

 

 

 

 

1 

The China RMB 5 billion 3-year syndicated revolving loan facility is subject to an annual confirmatory review in January each year. RMB 2 billion was repaid on 12/10/2023 (not reflected in the above)

2 

Lease obligations accounted for as debt under IFRS 16

3 

Primarily an advance as part of a sale and leaseback transaction

4 

Fair value adjustments relate to hedging arrangements for the $500m 2027 Notes and €500m 2026 Notes

5 

These series of notes were tendered for buy back on 06/10/2023. Settlement of the tendered amount - totalling $400m equivalent across the three series of notes (not reflected in the above) - took place on 18/10/2023

 

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Risks and mitigating factors

There are a number of potential risks which could have a material impact on the Group’s performance and could cause actual results to differ materially from expected and/or historical results, particularly those risks relating to continuing supply shortages of semiconductors, and those discussed on pages 46-49 of the Annual Report 2022/23 of the Group (available at www.jaguarlandrover.com/annual-report-2023) along with mitigating factors. The principal risks discussed in the Group’s Annual Report FY23 are competitive business efficiency, global economic and geopolitical environment, brand positioning, rapid technology change, environmental regulations and compliance, litigation / regulatory, supply chain disruptions, information security, client service delivery, manufacturing operations, and human capital.

Acquisitions and disposals

There were no material acquisitions or disposals in Q2 FY24.

Off-balance sheet financial arrangements

At 30 September 2023, Jaguar Land Rover Limited (a subsidiary of the Company) had sold £491 million equivalent of receivables under a $900 million invoice discounting facility signed in March 2023.

Personnel

At 30 September 2023, Jaguar Land Rover employed 42,560 people worldwide, including agency personnel, compared to 38,880 at 30 September 2022.

Board of directors

The following table provides information with respect to the members of the Board of Directors of Jaguar Land Rover Automotive plc as at 30 September 2023:

 

Name    Position    Year appointed
Natarajan Chandrasekaran    Chairman and Director    2017
Adrian Mardell    Chief Executive Officer and Director    2022
Prof Sir Ralf D Speth1    Vice Chairman and Director    2020
Mr P B Balaji    Director    2017
Hanne Sorensen    Director    2018
Charles Nichols    Director    2022
Al-Noor Ramji    Director    2022

 

1

Previously appointed as CEO and Director in 2010 and subsequently Vice Chairman and Director in 2020

 

8


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Condensed Consolidated Income Statement

 

£ millions

   Note      Three months ended     Six months ended  
   30 September
2023
    30 September
2022
Restated*
    30 September
2023
    30 September
2022
Restated*
 

Revenue

     3        6,857       5,260       13,760       9,666  

Material and other cost of sales

        (4,166     (3,212     (8,192     (5,974

Employee costs

     4        (713     (604     (1,429     (1,174

Other expenses

     9        (1,425     (1,180     (2,801     (2,189

Exceptional items

     4        —         —         —         155  

Engineering costs capitalised

     5        368       155       688       245  

Other income

     6        94       78       168       144  

Depreciation and amortisation

        (525     (509     (1,063     (1,000

Foreign exchange and fair value adjustments

     7        31       (55     (87     (204

Finance income

     8        41       11       74       18  

Finance expense (net)

     8        (125     (123     (256     (237

Share of profit of equity accounted investments

        5       6       15       8  
     

 

 

   

 

 

   

 

 

   

 

 

 

Profit/(loss) before tax

        442       (173     877       (542
     

 

 

   

 

 

   

 

 

   

 

 

 

Income tax (expense)/credit

     17        (170     75       (282     (38
     

 

 

   

 

 

   

 

 

   

 

 

 

Profit/(loss) for the period

        272       (98     595       (580
     

 

 

   

 

 

   

 

 

   

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

The notes on pages 14 to 37 are an integral part of these condensed consolidated financial statements.

 

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Condensed Consolidated Statement of Comprehensive Income and Expense

 

     Three months ended     Six months ended  

£ millions

   30 September
2023
    30 September
2022
    30 September
2023
    30 September
2022
 

Profit/(loss) for the period

     272       (98     595       (580

Items that will not be reclassified subsequently to profit or loss:

  

Remeasurement of net defined benefit obligation

     3       58       (127     437  

Income tax related to items that will not be reclassified

     (1     (14     32       (109
  

 

 

   

 

 

   

 

 

   

 

 

 
     2       44       (95     328  
  

 

 

   

 

 

   

 

 

   

 

 

 

Items that may be reclassified subsequently to profit or loss:

  

(Loss)/gain on cash flow hedges (net)

     (369     (841     282       (1,492

Currency translation differences

     17       26       (25     44  

Income tax related to items that may be reclassified

     67       (140     44       21  
  

 

 

   

 

 

   

 

 

   

 

 

 
     (285     (955     301       (1,427
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive (expense)/income net of tax

     (283     (911     206       (1,099
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive (expense)/income attributable to shareholder

     (11     (1,009     801       (1,679
  

 

 

   

 

 

   

 

 

   

 

 

 

The notes on pages 14 to 37 are an integral part of these condensed consolidated financial statements.

 

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Condensed Consolidated Balance Sheet

 

As at (£ millions)

   Note      30 September
2023
     31 March
2023
Restated*
     30 September
2022
Restated*
 

Non-current assets

           

Investments in equity accounted investees

        324        329        346  

Other non-current investments

        51        43        43  

Other financial assets

     14        144        149        372  

Property, plant and equipment

     11        5,851        5,842        6,213  

Intangible assets

     12        5,068        4,864        4,872  

Right-of-use assets

     13        620        635        646  

Pension asset

     25        552        659        1,062  

Other non-current assets

     16        170        75        70  

Deferred tax assets

        384        357        337  
     

 

 

    

 

 

    

 

 

 

Total non-current assets

        13,164        12,953        13,961  
     

 

 

    

 

 

    

 

 

 

Current assets

           

Cash and cash equivalents

        4,057        3,687        3,555  

Short-term deposits and other investments

        236        105        161  

Trade receivables

        1,117        1,013        810  

Other financial assets

     14        498        375        487  

Inventories

     15        3,509        3,238        3,227  

Other current assets

     16        606        607        529  

Current tax assets

        2        16        29  

Assets classified as held for sale

        60        62        28  
     

 

 

    

 

 

    

 

 

 

Total current assets

        10,085        9,103        8,826  
     

 

 

    

 

 

    

 

 

 

Total assets

        23,249        22,056        22,787  
     

 

 

    

 

 

    

 

 

 

Current liabilities

           

Accounts payable

        6,040        5,891        5,216  

Short-term borrowings

     21        1,341        1,478        1,908  

Other financial liabilities

     18        944        923        1,385  

Provisions

     19        1,097        1,089        1,089  

Other current liabilities

     20        925        590        749  

Current tax liabilities

        137        110        102  
     

 

 

    

 

 

    

 

 

 

Total current liabilities

        10,484        10,081        10,449  
     

 

 

    

 

 

    

 

 

 

Non-current liabilities

           

Long-term borrowings

     21        4,508        4,600        5,574  

Other financial liabilities

     18        984        1,123        1,974  

Provisions

     19        1,188        1,091        1,121  

Retirement benefit obligation

     25        22        22        27  

Other non-current liabilities

     20        863        772        662  

Deferred tax liabilities

        159        128        113  
     

 

 

    

 

 

    

 

 

 

Total non-current liabilities

        7,724        7,736        9,471  
     

 

 

    

 

 

    

 

 

 

Total liabilities

        18,208        17,817        19,920  
     

 

 

    

 

 

    

 

 

 

Equity attributable to shareholders

           

Ordinary shares

        1,501        1,501        1,501  

Capital redemption reserve

        167        167        167  

Other reserves

     23        3,373        2,571        1,199  
     

 

 

    

 

 

    

 

 

 

Equity attributable to shareholders

        5,041        4,239        2,867  
     

 

 

    

 

 

    

 

 

 

Total liabilities and equity

        23,249        22,056        22,787  
     

 

 

    

 

 

    

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

The notes on pages 14 to 37 are an integral part of these condensed consolidated financial statements.

These condensed consolidated interim financial statements were approved by the JLR plc Board and authorised for issue on 2 November 2023.

Company registered number: 06477691

 

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Condensed Consolidated Statement of Changes in Equity

 

£ millions

   Ordinary
shares
     Capital
redemption
reserve
     Other
reserves
    Total
equity
 

Balance at 1 April 2023

     1,501        167        2,571       4,239  

Profit for the period

     —          —          595       595  

Other comprehensive income for the period

     —          —          206       206  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total comprehensive income

     —          —          801       801  
  

 

 

    

 

 

    

 

 

   

 

 

 

Amounts removed from hedge reserve and recognised in inventory

     —          —          2       2  

Income tax related to amounts removed from hedge reserve and recognised in inventory

     —          —          (1     (1
  

 

 

    

 

 

    

 

 

   

 

 

 

Balance at 30 September 2023

     1,501        167        3,373       5,041  
  

 

 

    

 

 

    

 

 

   

 

 

 

£ millions

   Ordinary
shares
     Capital
redemption
reserve
     Other
reserves
    Total
equity
 

Balance at 1 April 2022

     1,501        167        2,835       4,503  

Loss for the period

     —          —          (580     (580

Other comprehensive expense for the period

     —          —          (1,099     (1,099
  

 

 

    

 

 

    

 

 

   

 

 

 

Total comprehensive expense

     —          —          (1,679     (1,679
  

 

 

    

 

 

    

 

 

   

 

 

 

Amounts removed from hedge reserve and recognised in inventory

     —          —          53       53  

Income tax related to amounts removed from hedge reserve and recognised in inventory

     —          —          (10     (10
  

 

 

    

 

 

    

 

 

   

 

 

 

Balance at 30 September 2022

     1,501        167        1,199       2,867  
  

 

 

    

 

 

    

 

 

   

 

 

 

The notes on pages 14 to 37 are an integral part of these condensed consolidated financial statements.

 

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Condensed Consolidated Cash Flow Statement

 

            Three months ended     Six months ended  

£ millions

   Note      30 September
2023
    30 September
2022
    30 September
2023
    30 September
2022
 

Cash flows from operating activities

           

Cash generated from operations

     28        965       416       2,109       82  

Dividends received

        —         —         2       —    

Income tax paid

        (40     (26     (140     (127
     

 

 

   

 

 

   

 

 

   

 

 

 

Net cash generated from/(used in) operating activities

        925       390       1,971       (45
     

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities

           

Purchases of other investments

        (1     (3     (3     (3
     

 

 

   

 

 

   

 

 

   

 

 

 

Investment in other restricted deposits

        (13     (11     (15     (17

Redemption of other restricted deposits

        3       2       14       14  
     

 

 

   

 

 

   

 

 

   

 

 

 

Movements in other restricted deposits

        (10     (9     (1     (3
     

 

 

   

 

 

   

 

 

   

 

 

 

Investment in short-term deposits and other investments

        (143     (40     (285     (308

Redemption of short-term deposits and other investments

        92       172       156       352  
     

 

 

   

 

 

   

 

 

   

 

 

 

Movements in short-term deposits and other investments

        (51     132       (129     44  

Purchases of property, plant and equipment

        (182     (122     (342     (252

Purchases of other assets acquired with view to resale

 

     —         (12     —         (24

Proceeds from sale of property, plant and equipment

        6       —         6       —    

Net cash outflow relating to intangible asset expenditure

        (383     (164     (715     (264

Issuance of loans to related parties

        —         —         (20     —    

Repayment of loans to related parties

        20       —         20       —    

Finance income received

        38       9       68       15  

Disposal of subsidiaries (net of cash disposed)

        9       —         9       2  
     

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

        (554     (169     (1,107     (485
     

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities

           

Finance expenses and fees paid

        (124     (116     (237     (216

Proceeds from issuance of borrowings

        —         —         —         594  

Repayment of borrowings

        (62     (63     (195     (719

Payments of lease obligations

        (18     (17     (35     (35
     

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

        (204     (196     (467     (376
     

 

 

   

 

 

   

 

 

   

 

 

 

Net increase/(decrease) in cash and cash equivalents

        167       25       397       (906

Cash and cash equivalents at beginning of period

        3,829       3,411       3,687       4,223  

Effect of foreign exchange on cash and cash equivalents

        61       119       (27     238  
     

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

        4,057       3,555       4,057       3,555  
     

 

 

   

 

 

   

 

 

   

 

 

 

The notes on pages 14 to 37 are an integral part of these condensed consolidated financial statements.

 

13


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

1

Accounting policies

Basis of preparation

The financial information in these interim financial statements is unaudited and does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The condensed consolidated interim financial statements of Jaguar Land Rover Automotive plc have been prepared in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’ in accordance with the requirements of UK-adopted international accounting standards. The balance sheet and accompanying notes as at 30 September 2022 have been disclosed solely for the information of the users.

The comparative figures for the financial year ended 31 March 2023 are not the company’s statutory accounts for that financial year but are derived from those accounts. Those accounts have been reported on by the company’s auditor and delivered to the registrar of companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report; and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The condensed consolidated interim financial statements have been prepared on a historical cost basis except for certain financial instruments held at fair value as highlighted in note 22.

The condensed consolidated interim financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 31 March 2023, which were prepared in accordance with UK-adopted international accounting standards.

The condensed consolidated interim financial statements have been prepared on the going concern basis as set out within the directors’ report of the Group’s Annual Report for the year ended 31 March 2023.

The accounting policies applied are consistent with those of the annual consolidated financial statements for the year ended 31 March 2023, as described in those financial statements, except as described below.

Change in accounting policy

During the six months ended 30 September 2023, the Group reviewed its accounting policy choice over the net presentation of grants relating to property, plant and equipment and intangible assets.

As a result, it was considered more appropriate to adopt a policy to present grants related to property, plant and equipment and intangible assets gross as separate liabilities instead of deducting them from the cost of the assets; and to present the unwind of the grant over the useful economic lives of the assets in ‘Other income’, rather than a reduction of ‘Depreciation and amortisation’.

Separate disclosure of amounts received for grants in relation to capital assets more closely aligns the presentation of assets in the consolidated balance sheet with the Group’s reported cash flows from investing activities; and improves transparency of the financial statements by allowing users to better understand the extent of grant income supporting investments. The policy is also aligned to that of the Group’s ultimate parent company and therefore enhances comparability with its other subsidiaries.

The prior period comparatives have been represented on this basis. The impact on the consolidated income statement for the three and six months ended 30 September 2022, and on the consolidated balance sheet at 30 September 2022 and 31 March 2023 are shown below:

Consolidated income statement (extract)

 

     Three months ended 30 September 2022     Six months ended 30 September 2022  

£ millions

   As reported     Restatement     Restated     As reported     Restatement     Restated  

Other income

     62       16       78       114       30       144  

Depreciation and amortisation

     (493     (16     (509     (970     (30     (1,000
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

14


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

1

Accounting policies (continued)

Change in accounting policy (continued)

 

Consolidated balance sheet (extract)

 

     As at 31 March 2023     As at 30 September 2022  

£ millions

   As reported     Restatement     Restated     As reported     Restatement     Restated  

Non-current assets

            

Property, plant and equipment

     5,759       83       5,842       6,133       80       6,213  

Intangible assets

     4,600       264       4,864       4,634       238       4,872  

Current liabilities

            

Other current liabilities

     (528     (62     (590     (688     (61     (749

Non-current liabilities

            

Other non-current liabilities

     (487     (285     (772     (405     (257     (662
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

There is no impact to profit/loss before or after taxation, reported equity, or net assets in any of the previous financial periods.

The revised accounting policy is given below.

Government grants

Government grants are recognised when there is reasonable assurance that the Group will comply with the relevant conditions and the grant will be received.

Government grants are recognised in the consolidated income statement, either on a systematic basis when the Group recognises, as expenses, the related costs that the grants are intended to compensate or immediately, if the costs have already been incurred.

Government grants related to income are presented as an offset against the related expenditure except in cases where there are no ongoing performance obligations to the Group, in which case the government grant is recognised as other income in the period in which the Group becomes entitled to the grant.

Government grants related to assets are presented gross as separate liabilities and unwound over the useful economic lives of the assets as other income.

Cash flows arising from grants related to income and assets are presented within cash flows from operating activities in the consolidated cash flow statement.

The terms and treatment of each grant is assessed on a case by case basis.

Sales tax incentives received from governments are recognised in the consolidated income statement at the reduced tax rate, and revenue is reported net of these sales tax incentives.

Estimates and judgements

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimate uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 March 2023.

 

15


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

1

Accounting policies (continued)

 

Going concern

The condensed consolidated interim financial statements have been prepared on a going concern basis, which the Directors consider appropriate for the reasons set out below.

The Directors have assessed the financial position of the Group as at 30 September 2023, and the projected cash flows of the Group for at least twelve-month period from the date of authorisation of the condensed consolidated interim financial statements (the ‘going concern assessment period’).

The Group had available liquidity of £5.8 billion at 30 September 2023, £4.3 billion of which is cash with the remainder the undrawn RCF facility. Within the going concern assessment period there is a £1 billion minimum quarter-end liquidity covenant attached to the Group’s UKEF loans and forward start RCF facility. There is £1.7 billion of maturing debt in the going concern assessment period, comprising UKEF and CNY loan repayments, EUR bond repayments and early repayment of EUR and USD bonds in October 2023 (see note 30). No new funding is assumed.

The Group has assessed its projected cash flows over the going concern assessment period. This base case uses the most recent Board-approved forecasts that include the going concern assessment period; taking into account the Group’s expectations of improved semiconductor supply, optimisation of production to prioritise the highest margin products along with the expectations relating to prevailing economic conditions, including the impact of inflationary pressures on material costs and environmental, social and governance (“ESG”) commitments.

The base case assumes a steady improvement in wholesale volumes, with associated increases in EBIT, in the going concern assessment period compared to the previous 12 months as semiconductor supply related production constraints progressively ease, supported by new partnership agreements with key semiconductor suppliers.

The Group has carried out a reverse stress test against the base case to determine the decline in wholesale volumes over a twelve-month period that would result in a liquidity level that breaches the £1 billion liquidity financing covenant. The reverse stress test assumes continued supply constraints over the 12-month period and optimisation of production to maximise production of higher margin products.

In order to reach a liquidity level that breaches covenants, it would require a sustained decline in wholesale volumes of more than 65% compared to the base case over a 12-month period. The reverse stress test reflects the variable profit impact of the wholesale volume decline, and assumes all other assumptions are held in line with the base case. It does not reflect other potential upside measures that could be taken in such a reduced volume scenario; nor any new funding.

The Group does not consider this scenario to be plausible given that the stress test volumes are significantly lower than the volumes achieved during both the peak of the COVID-19 pandemic and the worst quarter of semiconductor shortages. The Group has a strong order bank and is confident that it can significantly exceed reverse stress test volumes.

The Group has considered the impact of severe but plausible downside scenarios, including scenarios that reflect a decrease in variable profit per unit compared with the base case to include additional increases in material and other related production costs. The expected wholesale volumes under all of these scenarios is higher than under the reverse stress test.

The Directors, after making appropriate enquiries and taking into consideration the risks and uncertainties facing the Group, consider that the Group has adequate financial resources to continue operating throughout the going concern assessment period, meeting its liabilities as they fall due. Accordingly, the Directors continue to adopt the going concern basis in preparing these condensed consolidated interim financial statements.

 

16


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

2

Alternative Performance Measures

In reporting financial information, the Group presents alternative performance measures (‘APMs’) which 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 by the Group are defined below.

 

Alternative Performance
Measure

  

Definition

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 exceptional items    Profit/(loss) before tax excluding exceptional items.
Free cash flow    Net cash generated from operating activities less net cash used in automotive investing activities, excluding investments in joint ventures, associates and subsidiaries 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 and accruals    Changes in assets and liabilities as presented in note 28. 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, deposits and investments    Defined as cash and cash equivalents, short-term deposits and other investments, marketable securities 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 dealers. The Group recognises revenue on wholesales.

The Group uses adjusted EBITDA as an APM to review and measure the underlying profitability of the Group on an ongoing basis for comparability as it recognises that increased capital expenditure year-on-year will lead to a corresponding increase in depreciation and amortisation expense recognised within the consolidated income statement.

The Group uses adjusted EBIT as an APM to review and measure the underlying profitability of the Group on an ongoing basis as this excludes volatility on unrealised foreign exchange transactions. Due to the significant level of debt and currency derivatives, unrealised foreign exchange distorts the financial performance of the Group from one period to another.

 

17


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

2

Alternative Performance Measures (continued)

 

Free cash flow is considered by the Group to be a key measure in assessing and understanding the total operating performance of the Group and to identify underlying trends.

During the year ended 31 March 2023, the definition of ‘Free cash flow’ was amended to exclude investments in associates, joint ventures and subsidiaries. The Group considers the amended Free cash flow measure to be more useful as it provides a clearer view of recurring cash flows that is not distorted by the impact of one-off transactions. Free cash flow for the three and six month periods ended 30 September 2022 prior to the change was £(15) million and £(784) million respectively.

Total product and other investment is considered by the Group to be a key measure in assessing cash invested in the development of future new models and infrastructure supporting the growth of the Group.

Working capital and accruals is considered by the Group to be a key measure in assessing assets and liabilities that are expected to be converted into cash within the next 12-month period; as well as over the longer term.

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

 

            Three months ended     Six months ended  

£ millions

   Note      30 September
2023
    30 September 2022
Restated*
    30 September
2023
    30 September 2022
Restated*
 

Adjusted EBITDA

        1,021       557       2,144       850  

Depreciation and amortisation

        (525     (509     (1,063     (1,000

Share of profit of equity accounted investments

        5       6       15       8  
     

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBIT

        501       54       1,096       (142
     

 

 

   

 

 

   

 

 

   

 

 

 

Foreign exchange on debt, derivatives and balance sheet revaluation

     28        (11     (116     2       (230

Unrealised gain/(loss) on commodities

     28        35       (8     (43     (117

Finance income

     8        41       11       74       18  

Finance expense (net)

     8        (125     (123     (256     (237

Fair value gain on equity investments

     28        1       9       4       11  
     

 

 

   

 

 

   

 

 

   

 

 

 

Profit/(loss) before tax and exceptional items

        442       (173     877       (697
     

 

 

   

 

 

   

 

 

   

 

 

 

Exceptional items

     4        —         —         —         155  
     

 

 

   

 

 

   

 

 

   

 

 

 

Profit/(loss) before tax

        442       (173     877       (542
     

 

 

   

 

 

   

 

 

   

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

 

18


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

2

Alternative Performance Measures (continued)

 

Free cash flow

 

    Three months ended     Six months ended  

£ millions

  30 September
2023
    30 September
2022
    30 September
2023
    30 September 2022
Restated*
 

Net cash generated from/(used in) operating activities

    925       390       1,971       (45

Purchases of property, plant and equipment

    (182     (122     (342     (252

Net cash outflow relating to intangible asset expenditure

    (383     (164     (715     (264

Proceeds from sale of property, plant and equipment

    6       —         6       —    

Issuance of loans to related parties

    —         —         (20     —    

Repayment of loans to related parties

    20       —         20       —    

Purchases of other assets acquired with view to resale

    —         (12     —         (24

Finance expenses and fees paid

    (124     (116     (237     (216

Finance income received

    38       9       68       15  
 

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

    300       (15     751       (786
 

 

 

   

 

 

   

 

 

   

 

 

 

 

*

Comparative information has been restated for the change in definition explained on the previous page.

Total product and other investment

 

            Three months ended      Six months ended  

£ millions

   Note      30 September
2023
     30 September
2022
     30 September
2023
     30 September
2022
 

Purchases of property, plant and equipment

        182        122        342        252  

Net cash outflow relating to intangible asset expenditure

        383        164        715        264  

Engineering costs expensed

     5        209        237        412        496  

Purchases of other investments

        1        3        3        3  
     

 

 

    

 

 

    

 

 

    

 

 

 

Total product and other investment

        775        526        1,472        1,015  
     

 

 

    

 

 

    

 

 

    

 

 

 

Total cash and cash equivalents, deposits and investments

 

As at (£ millions)

   30 September
2023
     31 March
2023
     30 September
2022
 

Cash and cash equivalents

     4,057        3,687        3,555  

Short-term deposits and other investments

     236        105        161  
  

 

 

    

 

 

    

 

 

 

Total cash and cash equivalents, deposits and investments

     4,293        3,792        3,716  
  

 

 

    

 

 

    

 

 

 

Available liquidity

 

As at (£ millions)

   Note      30 September
2023
     31 March
2023
     30 September
2022
 

Cash and cash equivalents

        4,057        3,687        3,555  

Short-term deposits and other investments

        236        105        161  

Committed undrawn credit facilities

     21        1,520        1,520        1,500  
     

 

 

    

 

 

    

 

 

 

Available liquidity

        5,813        5,312        5,216  
     

 

 

    

 

 

    

 

 

 

Net debt

 

As at (£ millions)

   Note      30 September
2023
     31 March
2023
     30 September
2022
 

Cash and cash equivalents

        4,057        3,687        3,555  

Short-term deposits and other investments

        236        105        161  

Interest-bearing loans and borrowings

     21        (6,542      (6,788      (8,216
     

 

 

    

 

 

    

 

 

 

Net debt

        (2,249      (2,996      (4,500
     

 

 

    

 

 

    

 

 

 

 

19


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

2

Alternative Performance Measures (continued)

 

Retails and wholesales

 

     Three months ended      Six months ended  

Units

   30 September
2023
     30 September
2022
     30 September
2023
     30 September
2022
 

Retail sales

     106,561        88,121        208,555        166,946  
  

 

 

    

 

 

    

 

 

    

 

 

 

Wholesales*

     96,817        75,307        190,070        147,122  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

*

Wholesale volumes exclude sales from Chery Jaguar Land Rover – Q2 FY24: 12,346 units, Q2 FY23: 14,589 units, H1 FY24: 25,378 units, H1 FY23: 25,361 units.

 

3

Disaggregation of revenue

 

     Three months ended      Six months ended  

£ millions

   30 September
2023
     30 September
2022
     30 September
2023
     30 September
2022
 

Revenue recognised for sales of vehicles, parts and accessories

     6,493        5,122        13,114        9,335  

Revenue recognised for services transferred

     85        82        167        156  

Revenue - other

     256        220        515        415  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue excluding realised revenue hedges

     6,834        5,424        13,796        9,906  
  

 

 

    

 

 

    

 

 

    

 

 

 

Realised revenue hedges

     23        (164      (36      (240
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

     6,857        5,260        13,760        9,666  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

4

Exceptional items

 

     Three months ended      Six months ended  

£ millions

   30 September
2023
     30 September
2022
     30 September
2023
     30 September
2022
 

Employee costs excluding exceptional items

     (713      (604      (1,429      (1,174

Impact of:

           

Past service credit

     —          —          —          155  
  

 

 

    

 

 

    

 

 

    

 

 

 

Employee costs including exceptional items

     (713      (604      (1,429      (1,019
  

 

 

    

 

 

    

 

 

    

 

 

 

The exceptional item recognised during the six months ended 30 September 2022 comprised of a pension past service credit of £155 million due to a change in inflation index from RPI to CPI.

 

5

Engineering costs capitalised

 

     Three months ended      Six months ended  

£ millions

   30 September
2023
     30 September 2022
Restated*
     30 September
2023
     30 September 2022
Restated*
 

Total engineering costs incurred

     577        392        1,100        741  

Engineering costs expensed

     (209      (237      (412      (496
  

 

 

    

 

 

    

 

 

    

 

 

 

Engineering costs capitalised

     368        155        688        245  
  

 

 

    

 

 

    

 

 

    

 

 

 

Interest capitalised in engineering costs capitalised

     18        2        31        7  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total internally developed intangible additions

     386        157        719        252  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

 

20


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

6

Other income

 

     Three months ended      Six months ended  

£ millions

   30 September
2023
     30 September 2022
Restated*
     30 September
2023
     30 September 2022
Restated*
 

Grant income

     64        51        112        89  

Commissions

     7        7        10        13  

Other

     23        20        46        42  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other income

     94        78        168        144  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

 

7

Foreign exchange and fair value adjustments

 

     Three months ended      Six months ended  

£ millions

   30 September
2023
     30 September
2022
     30 September
2023
     30 September
2022
 

Foreign exchange and fair value adjustments on loans

     (65      (279      41        (533

Foreign exchange gain/(loss) on economic hedges of loans

     51        186        (61      334  

Foreign exchange gain/(loss) on derivatives

     4        (23      4        (36

Other foreign exchange gain/(loss)

     21        57        (5      107  

Realised (loss)/gain on commodities

     (16      3        (27      30  

Unrealised gain/(loss) on commodities

     35        (8      (43      (117

Fair value gain on equity investments

     1        9        4        11  
  

 

 

    

 

 

    

 

 

    

 

 

 

Foreign exchange and fair value adjustments

     31        (55      (87      (204
  

 

 

    

 

 

    

 

 

    

 

 

 

 

8

Finance income and expense

 

     Three months ended      Six months ended  

£ millions

   30 September
2023
     30 September
2022
     30 September
2023
     30 September
2022
 

Finance income

     41        11        74        18  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total finance income

     41        11        74        18  
  

 

 

    

 

 

    

 

 

    

 

 

 

Interest expense on lease liabilities

     (14      (14      (28      (26

Interest expense on financial liabilities measured at amortised cost other than lease liabilities

     (104      (104      (210      (205

Interest expense on derivatives designated as a fair value hedge of financial liabilities

     (7      (4      (13      (4

Unwind of discount on provisions

     (19      (3      (38      (11

Interest capitalised

     19        2        33        9  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total finance expense (net)

     (125      (123      (256      (237
  

 

 

    

 

 

    

 

 

    

 

 

 

The capitalisation rate used to calculate borrowing costs eligible for capitalisation during the six month period ended 30 September 2023 was 6.2% (six month period ended 30 September 2022: 5.1%).

 

9

Other expenses

 

     Three months ended      Six months ended  

£ millions

   30 September
2023
     30 September
2022
     30 September
2023
     30 September
2022
 

Stores, spare parts and tools

     28        25        58        48  

Freight cost

     170        144        342        296  

Works, operations and other costs

     745        593        1,480        1,106  

Power and fuel

     28        58        60        96  

Product warranty

     267        234        490        403  

Publicity

     187        126        371        240  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other expenses

     1,425        1,180        2,801        2,189  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

21


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

10

Allowances for trade and other receivables

 

     Six months ended  

£ millions

   30 September
2023
     30 September
2022
 

At beginning of period

     4        4  

Charged during the period

     4        1  
  

 

 

    

 

 

 

At end of period

     8        5  
  

 

 

    

 

 

 

 

11

Property, plant and equipment

 

£ millions

   Land and
Buildings
    Plant and
equipment
    Vehicles      IT
equipment
    Fixtures
and
fittings
    Heritage
vehicles
    Under
construction
    Total  

Cost

                 

Balance at 1 April 2023 restated*

     2,646       11,360       14        213       140       40       388       14,801  

Additions

     —         —         —          —         —         —         527       527  

Transfers

     60       146       —          2       —         —         (208     —    

Disposals

     (6     (265     —          (4     (3     (25     —         (303

Foreign currency translation

     (6     (9     —          —         —         —         —         (15
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at 30 September 2023

     2,694       11,232       14        211       137       15       707       15,010  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation and impairment

 

Balance at 1 April 2023 restated*

     736       7,953       11        132       93       34       —         8,959  

Depreciation charge for the period

     62       415       —          8       4       —         —         489  

Disposals

     (6     (245     —          (4     (3     (25     —         (283

Foreign currency translation

     (3     (2     —          —         (1     —         —         (6
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at 30 September 2023

     789       8,121       11        136       93       9       —         9,159  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net book value

                 

At 1 April 2023 restated*

     1,910       3,407       3        81       47       6       388       5,842  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

At 30 September 2023

     1,905       3,111       3        75       44       6       707       5,851  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

 

22


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

11

Property, plant and equipment (continued)

 

£ millions

   Land and
Buildings
    Plant and
equipment
    Vehicles     IT
equipment
     Fixtures
and
fittings
    Heritage
vehicles
     Under
construction
    Total  

Cost

                  

Balance at 1 April 2022 restated*

     2,639       11,264       15       195        134       46        231       14,524  

Additions

     —         —         —         6        —         —          302       308  

Transfers

     44       203       —         —          —         —          (247     —    

Transfers to right-of-use assets

     (13     —         —         —          —         —          —         (13

Disposals

     —         (9     (2     —          —         —          —         (11

Foreign currency translation

     17       20       (1     1        (1     —          —         36  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Balance at 30 September 2022

     2,687       11,478       12       202        133       46        286       14,844  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Depreciation and impairment

 

Balance at 1 April 2022 restated*

     619       7,321       10       117        87       34              8,188  

Depreciation charge for the period

     57       369       —         8        4       —          —         438  

Disposals

     —         (7     (1     —          —         —          —         (8

Foreign currency translation

     4       9       —         —          —         —          —         13  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Balance at 30 September 2022

     680       7,692       9       125        91       34        —         8,631  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Net book value

                  

At 1 April 2022 restated*

     2,020       3,943       5       78        47       12        231       6,336  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

At 30 September 2022

     2,007       3,786       3       77        42       12        286       6,213  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

 

23


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

12

Intangible assets

 

£ millions

   Software     Patents and
technological
know-how
     Customer
related
     Intellectual
property
rights and
other
intangibles
     Product
development
- completed
    Product
development
- in progress
    Total  

Cost

                 

Balance at 1 April 2023 restated*

     948       147        61        650        9,150       793       11,749  

Additions - externally purchased

     28       —          —          —          —         —         28  

Additions - internally developed

     —         —          —          —          —         719       719  

Transfers

     —         —          —          —          74       (74     —    

Disposals

     (95     —          —          —          (222     —         (317
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Balance at 30 September 2023

     881       147        61        650        9,002       1,438       12,179  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Amortisation and impairment

 

Balance at 1 April 2023 restated*

     743       147        48        173        5,774       —         6,885  

Amortisation in the period

     37       —          5        1        488       —         531  

Disposals

     (83     —          —          —          (222     —         (305
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Balance at 30 September 2023

     697       147        53        174        6,040       —         7,111  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net book value

                 

At 1 April 2023 restated*

     205       —          13        477        3,376       793       4,864  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

At 30 September 2023

     184       —          8        476        2,962       1,438       5,068  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

 

£ millions

   Software      Patents and
technological
know-how
     Customer
related
     Intellectual
property
rights and
other
intangibles
     Product
development
- completed
    Product
development
- in progress
    Total  

Cost

                  

Balance at 1 April 2022 restated*

     894        147        61        650        9,500       574       11,826  

Additions - externally purchased

     18        —          —          —          —         —         18  

Additions - internally developed

     —          —          —          —          —         252       252  

Transfers

     —          —          —          —          517       (517     —    

Disposals

     —          —          —          —          (865     —         (865
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Balance at 30 September 2022

     912        147        61        650        9,152       309       11,231  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Amortisation and impairment

 

Balance at 1 April 2022 restated*

     674        147        46        170        5,670       —         6,707  

Amortisation in the period

     33        —          1        2        481       —         517  

Disposals

     —          —          —          —          (865     —         (865
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Balance at 30 September 2022

     707        147        47        172        5,286       —         6,359  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net book value

                  

At 1 April 2022 restated*

     220        —          15        480        3,830       574       5,119  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

At 30 September 2022

     205        —          14        478        3,866       309       4,872  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

 

24


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

13

Right-of-use assets

 

£ millions

   Land and
buildings
    IT
equipment
    Plant and
equipment
    Vehicles     Fixtures
and
fittings
     Other     Total  

Cost

               

Balance at 1 April 2023

     781       17       94       7       17        4       920  

Additions

     14       1       13       1       —          —         29  

Other

     4       —         —         —         —          (1     3  

Disposals

     (15     (4     (13     (1     —          (2     (35
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Balance at 30 September 2023

     784       14       94       7       17        1       917  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Accumulated depreciation

 

Balance at 1 April 2023

     208       9       57       3       5        3       285  

Depreciation in the period

     33       2       6       1       1        —         43  

Disposals

     (11     (4     (13     (1     —          (2     (31
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Balance at 30 September 2023

     230       7       50       3       6        1       297  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net book value

               

At 1 April 2023

     573       8       37       4       12        1       635  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

At 30 September 2023

     554       7       44       4       11        —         620  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

£ millions

   Land and
buildings
    IT
equipment
     Plant and
equipment
     Vehicles      Fixtures
and
fittings
     Other      Total  

Cost

                   

Balance at 1 April 2022

     672       24        101        14        17        5        833  

Additions

     96       2        6        2        —          —          106  

Other

     14       —          1        —          —          —          15  

Foreign currency translation

     2       —          2        —          —          —          4  

Disposals

     (1     —          —          —          —          —          (1
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at 30 September 2022

     783       26        110        16        17        5        957  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Accumulated depreciation

                   

Balance at 1 April 2022

     168       18        60        11        4        4        265  

Depreciation in the period

     31       2        8        2        2        —          45  

Other

     (1     —          —          —          —          —          (1

Foreign currency translation

     2       —          1        —          —          —          3  

Disposals

     (1     —          —          —          —          —          (1
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at 30 September 2022

     199       20        69        13        6        4        311  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net book value

                   

At 1 April 2022

     504       6        41        3        13        1        568  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

At 30 September 2022

     584       6        41        3        11        1        646  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

25


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

14

Other financial assets

 

As at (£ millions)

   30 September 2023      31 March 2023      30 September 2022  

Non-current

        

Restricted cash

     9        9        11  

Derivative financial instruments

     66        71        291  

Warranty reimbursement and other receivables

     53        54        54  

Other

     16        15        16  
  

 

 

    

 

 

    

 

 

 

Total non-current other financial assets

     144        149        372  
  

 

 

    

 

 

    

 

 

 

Current

        

Restricted cash

     12        11        17  

Derivative financial instruments

     220        101        208  

Warranty reimbursement and other receivables

     102        85        90  

Accrued income

     35        40        47  

Other

     129        138        125  
  

 

 

    

 

 

    

 

 

 

Total current other financial assets

     498        375        487  
  

 

 

    

 

 

    

 

 

 

 

15

Inventories

 

As at (£ millions)

   30 September 2023      31 March 2023      30 September 2022  

Raw materials and consumables

     165        148        139  

Work-in-progress

     499        504        737  

Finished goods

     2,845        2,589        2,345  

Inventory basis adjustment

     —          (3      6  
  

 

 

    

 

 

    

 

 

 

Total inventories

     3,509        3,238        3,227  
  

 

 

    

 

 

    

 

 

 

Inventories of finished goods include £461 million (31 March 2023: £402 million, 30 September 2022: £388 million) relating to vehicles sold to rental car companies, fleet clients and others with guaranteed repurchase arrangements.

During the six month period ending 30 September 2023, the Group recorded an inventory write-down expense of £46 million (six month period ended 30 September 2022: £21 million). The write-down is included in “Material and other cost of sales”.

 

16

Other assets

 

As at (£ millions)

   30 September 2023      31 March 2023      30 September 2022  

Non-current

        

Prepaid expenses

     76        66        26  

Research and development expenditure credit

     84        3        36  

Other

     10        6        8  
  

 

 

    

 

 

    

 

 

 

Total non-current other assets

     170        75        70  
  

 

 

    

 

 

    

 

 

 

Current

        

Recoverable VAT

     204        252        237  

Prepaid expenses

     287        219        216  

Research and development expenditure credit

     100        121        61  

Other

     15        15        15  
  

 

 

    

 

 

    

 

 

 

Total current other assets

     606        607        529  
  

 

 

    

 

 

    

 

 

 

 

17

Taxation

Recognised in the income statement

Income tax for the six month period ending 30 September 2023 and 30 September 2022 is charged at the estimated effective tax rate expected to apply for the applicable financial year ends and adjusted for relevant deferred tax amounts where applicable.

A tax charge of £282 million was incurred in the six month period ending 30 September 2023. The effective tax rate of 32% is impacted by the ability of the UK to shelter UK tax liabilities with UK deferred tax assets which are currently not fully recognised on the balance sheet.

 

26


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

18

Other financial liabilities

 

As at (£ millions)

   30 September 2023      31 March 2023      30 September 2022  

Current

        

Lease obligations

     71        70        65  

Interest accrued

     104        95        111  

Derivative financial instruments

     385        461        967  

Liability for vehicles sold under a repurchase arrangement

     384        297        242  
  

 

 

    

 

 

    

 

 

 

Total current other financial liabilities

     944        923        1,385  
  

 

 

    

 

 

    

 

 

 

Non-current

        

Lease obligations

     622        640        669  

Derivative financial instruments

     352        472        1,276  

Other

     10        11        29  
  

 

 

    

 

 

    

 

 

 

Total non-current other financial liabilities

     984        1,123        1,974  
  

 

 

    

 

 

    

 

 

 

 

19

Provisions

 

As at (£ millions)

   30 September 2023      31 March 2023      30 September 2022*  

Current

        

Product warranty

     699        696        623  

Emissions compliance

     10        9        146  

Restructuring

     2        5        26  

Third party claims and obligations

     315        300        263  

Other provisions

     71        79        31  
  

 

 

    

 

 

    

 

 

 

Total current provisions

     1,097        1,089        1,089  
  

 

 

    

 

 

    

 

 

 

Non-current

        

Product warranty

     1,054        976        1,023  

Emissions compliance

     85        71        51  

Other provisions

     49        44        47  
  

 

 

    

 

 

    

 

 

 

Total non-current provisions

     1,188        1,091        1,121  
  

 

 

    

 

 

    

 

 

 

 

*

The comparatives at 30 September 2022 have been re-presented to align with presentation changes made during the year ended 31 March 2023. Product warranty and Restructuring amounts are consistent with previous periods. Legal and product liability amounts disclosed in previous periods are now split into Emissions compliance, Third party claims and obligations and Other provisions. Provisions for residual risk, environmental liability and other employee benefits obligations amounts disclosed in previous periods are now grouped in Other provisions. This has not resulted in any change to reported ‘Total current provisions’ or ‘Total non-current provisions’.

 

£ millions

   Product
warranty
    Emissions
compliance
    Restructuring     Third party
claims and
obligations
    Other
provisions
    Total  

Balance at 1 April 2023

     1,672       80       5       300       123       2,180  

Provisions made during the period

     461       42       —         321       16       840  

Provisions used during the period

     (391     (9     (2     (245     (6     (653

Unused amounts reversed in the period

     (27     (19     (1     (61     (4     (112

Impact of unwind of discounting

     38       —         —         —         —         38  

Foreign currency translation

     —         1       —         —         (9     (8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at 30 September 2023

     1,753       95       2       315       120       2,285  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

27


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

20

Other liabilities

 

As at (£ millions)

   30 September 2023      31 March 2023
Restated*
     30 September 2022
Restated*
 

Current

        

Liabilities for advances received

     186        51        80  

Ongoing service obligations

     314        301        310  

VAT

     112        98        95  

Deferred grant income

     68        62        61  

Other taxes payable

     234        70        199  

Other

     11        8        4  
  

 

 

    

 

 

    

 

 

 

Total current other liabilities

     925        590        749  
  

 

 

    

 

 

    

 

 

 

Non-current

        

Ongoing service obligations

     549        478        397  

Deferred grant income

     312        291        263  

Other

     2        3        2  
  

 

 

    

 

 

    

 

 

 

Total non-current other liabilities

     863        772        662  
  

 

 

    

 

 

    

 

 

 

 

*

See note 1 for details of restatement as a result of a change in accounting policy.

 

21

Interest bearing loans and borrowings

 

As at (£ millions)

   30 September 2023      31 March 2023      30 September 2022  

Short-term borrowings

        

Bank loans

     561        658        632  

Current portion of long-term EURO MTF listed debt

     562        571        848  

Current portion of long-term loans

     218        249        428  
  

 

 

    

 

 

    

 

 

 

Short-term borrowings

     1,341        1,478        1,908  
  

 

 

    

 

 

    

 

 

 

Long-term borrowings

        

EURO MTF listed debt

     3,503        3,512        4,294  

Bank loans

     969        1,053        1,245  

Other unsecured

     36        35        35  
  

 

 

    

 

 

    

 

 

 

Long-term borrowings

     4,508        4,600        5,574  
  

 

 

    

 

 

    

 

 

 

Lease obligations

     693        710        734  
  

 

 

    

 

 

    

 

 

 

Total debt

     6,542        6,788        8,216  
  

 

 

    

 

 

    

 

 

 

Undrawn facilities

As at 30 September 2023, the Group has a fully undrawn revolving credit facility of £1,520 million (31 March 2023: £1,520 million, 30 September 2022: £1,500 million), with maturity date of April 2026

 

22

Financial instruments

The condensed consolidated interim financial statements have been prepared on a historical cost basis except for certain financial instruments held at fair value. These financial instruments are classified as either level 2 fair value measurements, as defined by IFRS 13, being those derived from inputs other than quoted prices which are observable, or level 3 fair value measurements, being those derived from significant unobservable inputs. There have been no changes in the valuation techniques used or transfers between fair value levels from those set out in note 37 to the annual consolidated financial statements for the year ended 31 March 2023.

 

28


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

22

Financial instruments (continued)

 

The tables below show the carrying amounts and fair value of each category of financial assets and liabilities, other than those with carrying amounts that are reasonable approximations of fair values.

 

            Fair Value Through Profit and Loss                

As at 30 September 2023
(£ millions)

   Amortised
cost
     Financial
assets
     Derivatives
other than
in hedging
relationship
     Derivatives
in hedging
relationship
     Total
carrying
value
     Total
fair value
 

Cash and cash equivalents

     4,057        —          —          —          4,057        4,057  

Short-term deposits and other investments

     236        —          —          —          236        236  

Trade receivables

     1,117        —          —          —          1,117        1,117  

Other non-current investments

     —          51        —          —          51        51  

Other financial assets - current

     278        —          137        83        498        498  

Other financial assets - non-current

     78        —          1        65        144        144  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total financial assets

     5,766        51        138        148        6,103        6,103  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Accounts payable

     6,040        —          —          —          6,040        6,040  

Short-term borrowings

     1,341        —          —          —          1,341        1,338  

Long-term borrowings*

     4,508        —          —          —          4,508        4,434  

Other financial liabilities - current

     559        —          65        320        944        944  

Other financial liabilities - non-current

     632        —          38        314        984        960  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total financial liabilities

     13,080        —          103        634        13,817        13,716  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

*

Included in the long-term borrowings shown in other financial liabilities is £432 million that is designated as the hedged item in a fair value hedge relationship. Included within long-term borrowings is £(136) million of fair value adjustments of which £(113) million relates to the ongoing hedge relationship and £(23) million relates to hedge relationships that were discontinued during the year ended 31 March 2023. Included in the long-term borrowings is £980 million that is designated as a hedging instrument in a cash flow hedge relationship.

 

            Fair Value Through Profit and Loss                

As at 31 March 2023
(£ millions)

   Amortised
cost
     Financial
assets
     Derivatives
other than
in hedging
relationship
     Derivatives
in hedging
relationship
     Total
carrying
value
     Total
fair value
 

Cash and cash equivalents

     3,687        —          —          —          3,687        3,687  

Short-term deposits and other investments

     105        —          —          —          105        105  

Trade receivables

     1,013        —          —          —          1,013        1,013  

Other non-current investments

     —          43        —          —          43        43  

Other financial assets - current

     274        —          55        46        375        375  

Other financial assets - non-current

     78        —          51        20        149        149  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total financial assets

     5,157        43        106        66        5,372        5,372  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Accounts payable

     5,891        —          —          —          5,891        5,891  

Short-term borrowings

     1,478        —          —          —          1,478        1,476  

Long-term borrowings*

     4,600        —          —          —          4,600        4,376  

Other financial liabilities - current

     462        —          89        372        923        923  

Other financial liabilities - non-current

     651        —          20        452        1,123        1,080  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total financial liabilities

     13,082        —          109        824        14,015        13,746  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

*

Included in the long-term borrowings shown in other financial liabilities is £438 million that is designated as the hedged item in a fair value hedge relationship. Included within long-term borrowings is £(132) million of fair value adjustments of which £(106) million relates to the ongoing hedge relationship and £(26) million relates to hedge relationships that were discontinued during the year ended 31 March 2023. Included in the long-term borrowings is £968 million that is designated as a hedging instrument in a cash flow hedge relationship.

 

29


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

22

Financial instruments (continued)

 

            Fair Value Through Profit and Loss                

As at 30 September 2022
(£ millions)

   Amortised
cost
     Financial
assets
     Derivatives
other than
in hedging
relationship
     Derivatives
in hedging
relationship
     Total
carrying
value
     Total
fair value
 

Cash and cash equivalents

     3,555        —         —         —         3,555        3,555  

Short-term deposits and other investments

     161        —         —         —         161        161  

Trade receivables

     810        —         —         —         810        810  

Other non-current investments

     —         43        —         —         43        43  

Other financial assets - current

     279        —         91        117        487        487  

Other financial assets - non-current

     81        —         268        23        372        372  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total financial assets

     4,886        43        359        140        5,428        5,428  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Accounts payable

     5,216        —         —         —         5,216        5,216  

Short-term borrowings

     1,908        —         —         —         1,908        1,887  

Long-term borrowings*

     5,574        —         —         —         5,574        4,779  

Other financial liabilities - current

     418        —         90        877        1,385        1,385  

Other financial liabilities - non-current

     698        —         22        1,254        1,974        1,837  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total financial liabilities

     13,814        —         112        2,131        16,057        15,104  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

*

Included in the long-term borrowings shown in other financial liabilities is £440 million that is designated as the hedged item in a fair value hedge relationship. Included within long-term borrowings is £(126) million of fair value adjustments of which £(97) million relates to the ongoing hedge relationship and £(29) million relates to hedge relationships that were discontinued during the period ended 30 September 2022.

The following tables show the levels in the fair value hierarchy for financial assets and liabilities where the carrying value is not a reasonable approximation of fair value.

 

£ millions

   As at 30 September 2023  
   Level 1      Level 2      Level 3      Total  

Financial assets measured at fair value

           

Investments

     —         —         51        51  

Derivative assets

     —         286        —         286  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —         286        51        337  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities measured at fair value

           

Derivative liabilities

     —         737        —         737  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —         737        —         737  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities not measured at fair value

           

Borrowings

     3,631        2,141        —         5,772  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     3,631        2,141        —         5,772  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

£ millions

   As at 31 March 2023  
   Level 1      Level 2      Level 3      Total  

Financial assets measured at fair value

           

Investments

     —         —         43        43  

Derivative assets

     —         172        —         172  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —         172        43        215  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities measured at fair value

           

Derivative liabilities

     —         933        —         933  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —         933        —         933  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities not measured at fair value

           

Borrowings

     3,840        2,012        —         5,852  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     3,840        2,012        —         5,852  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

30


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

22

Financial instruments (continued)

 

£ millions

   As at 30 September 2022  
   Level 1      Level 2      Level 3      Total  

Financial assets measured at fair value

           

Investments

     —          —          43        43  

Derivative assets

     —          499        —          499  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          499        43        542  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities measured at fair value

           

Derivative liabilities

     —          2,243        —          2,243  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          2,243        —          2,243  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial liabilities not measured at fair value

           

Borrowings

     4,313        2,353        —          6,666  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     4,313        2,353        —          6,666  
  

 

 

    

 

 

    

 

 

    

 

 

 

Reconciliation of level 3 fair values

The following table gives a reconciliation of the movements in level 3 financial assets held at fair value.

 

£ millions

   Six months ended  
   30 September
2023
     30 September
2022
 

Balance at 1 April

     43        30  

Purchased during the period

     3        3  

Fair value gain

     4        11  

Currency translation

     1        (1
  

 

 

    

 

 

 

Balance at 30 September

     51        43  
  

 

 

    

 

 

 

 

23

Other reserves

The movement in reserves is as follows:

 

£ millions

   Translation
reserve
    Hedging
reserve
    Cost of
hedging
reserve
    Retained
earnings
    Total
other
reserves
 

Balance at 1 April 2023

     (320     (608     (34     3,533       2,571  

Profit for the period

     —         —         —         595       595  

Remeasurement of defined benefit obligation

     —         —         —         (127     (127

Gain on effective cash flow hedges

     —         215       33       —         248  

Income tax related to items recognised in other comprehensive income

     —         53       (1     32       84  

Cash flow hedges reclassified to profit and loss

     —         41       (7     —         34  

Income tax related to items reclassified to profit or loss

     —         (10     2       —         (8

Amounts removed from hedge reserve and recognised in inventory

     —         2       —         —         2  

Income tax related to amounts removed from hedge reserve and recognised in inventory

     —         (1     —         —         (1

Currency translation differences

     (25     —         —         —         (25
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at 30 September 2023

     (345     (308     (7     4,033       3,373  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

31


Table of Contents

Notes (forming part of the condensed consolidated interim financial statements)

 

23

Other reserves (continued)

 

£ millions

   Translation
reserve
    Hedging
reserve
    Cost of
hedging
reserve
    Retained
earnings
    Total
other
reserves
 

Balance at 1 April 2022

     (333     (454     19       3,603       2,835  

Loss for the period

     —         —         —         (580     (580

Remeasurement of defined benefit obligation

     —         —         —         437       437  

Loss on effective cash flow hedges

     —         (1,743     (1     —         (1,744

Income tax related to items recognised in other comprehensive income

     —         64       4       (109     (41

Cash flow hedges reclassified to profit and loss

     —         260       (8     —         252  

Income tax related to items reclassified to profit or loss

     —         (48     1       —         (47

Amounts removed from hedge reserve and recognised in inventory

     —         48       5       —         53  

Income tax related to amounts removed from hedge reserve and recognised in inventory

     —         (9     (1     —         (10

Currency translation differences

     44       —         —         —         44  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at 30 September 2022

     (289     (1,882     19       3,351       1,199  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

24

Dividends

During the six-month periods ended 30 September 2023 and 30 September 2022, no ordinary share dividends were proposed or paid.

 

25

Employee benefits

The Group has pension arrangements providing employees with defined benefits related to pay and service as set out in the rules of each scheme. The following table sets out the disclosure pertaining to employee benefits of the JLR Automotive Group plc which operates defined benefit pension schemes.

 

£ millions

   Six months ended