Jaguar Land Rover - Annual Report - FINAL

JAGUAR LAND ROVER AUTOMOTIVE PLC
JAGUARAnnual Report
LAND ROVER 2019/20
AUTOMOTIVE PLC
Annual Report 2019/20
CONTENTS F I S C A L Y E A R 2 0 1 9 / 2 0 AT A G L A N C E
S T R AT E G I C R E P O R T F I N A N C I A L S TAT E M E N T S We are a global automotive manufacturer and leading Our mission is Destination Zero; a world of zero emissions,
technology company, proudly built around two iconic British zero accidents and zero congestion, shaping an autonomous,
4 Fiscal year 2019/20 at a glance 39 I n d e p e n d e n t a u d i t o r ’s r e p o r t car brands: Jaguar and Land Rover. We are driven by a desire connected, electrified and shared future.
to deliver class-leading vehicles, providing experiences people
5 C h a i r m a n ’s s t a t e m e n t 49 Consolidated income statement
love, for life.
7 C E O ’s s t a t e m e n t 49 Consolidated statement of
comprehensive income and expense
9 Challenges and opportunities
50 Consolidated balance sheet
11 Business model and our blueprint
for success 51 Consolidated statement of
changes in equity
13 Global retail sales R E TA I L S A L E S I N C L U D I N G WHOLESALES EXCLUDING
52 Consolidated cash flow statement OUR CHINA JOINT VENTURE OUR CHINA JOINT VENTURE
15 C F O ’s s t a t e m e n t
53
16 Financial performance
Notes (forming part of the consolidated
financial statements) 508,659 UNITS 475,952 UNITS
19 Our principal risks 125 Parent company f inancial statements FISCAL 2019/20: 508,659 FISCAL 2019/20: 475,952
23 Streamlined energ y repor ting FISCAL 2018/19: 578,915 FISCAL 2018/19: 507,895
25 Introduction to governance FISCAL 2017/18: 614,309 FISCAL 2017/18: 545,298

27 Leadership
31 Effectiveness
32 Accountability
REVENUE P R O F I T/ ( L O S S ) B E F O R E TA X
35 J a g u a r L a n d R o v e r ’s a p p r o a c h t o t a x
AFTER EXCEPTIONAL CHARGES*
£23.0 BN
£(0.4) BN
DIRECTORS’ REPORT FISCAL 2019/20: £23.0bn FISCAL 2019/20: £(0.4)bn
FISCAL 2018/19: £24.2bn FISCAL 2018/19: £(3.6)bn

37 Directors’ repor t
FISCAL 2017/18: £25.8bn FISCAL 2017/18: £1.5bn
O P E R AT I N G C A S H F L O W T O TA L I N V E S T M E N T
BEFORE INVESTMENT SPENDING*
£2.6 BN £3.3 BN
* Please see note 3 of the financial statements on page 70 for alternative performance measures
3 JAGUAR LAND ROVER AUTOMOTIVE PLC

B HUASIIRNMEASNS’ SMSOT D
C A TEELM E N T
In the past year, the global automotive industry has witnessed sought efficiencies in every part of our operations stretching In the year ahead, we must seize every opportunity that arises from the upheavals of 2019-20. The company’s unique
the greatest set of challenges in its history. Faced with the from supply chains to manufacturing plants, and from R&D in these areas while addressing the ongoing industry challenges capabilities – especially in high-performance and go-anywhere
COVID-19 crisis and market headwinds that were mounting centres to retailer networks. that confront us. These challenges include preparing for Britain’s luxury vehicles – are recognised already by customers around the
even before the pandemic, Jaguar Land Rover has responded withdrawal from the European single market at the end of the world. Those capabilities will drive future demand. At the same
responsibly and effectively to this unprecedented disruption. The new fiscal year will be marked by further uncertainty, Brexit transition period, albeit with little clarity yet on the shape time, Tata Group recognises and values Jaguar Land Rover’s
reflecting the varying pace of economic recovery in different of future trading arrangements. future potential highly.
I would like to thank everyone at Jaguar Land Rover, as well regions. This will require a continued focus on financial
as our many partners and stakeholders, for their commitment, discipline and further efficiencies, building on the considerable This year, our Chief Executive Officer Prof Sir Ralf Speth will retire That is why this company is central to our global automotive
hard work and support for the business. Together, we will success of Jaguar Land Rover’s Charge+ and Accelerate after 10 years of dedicated service. I would like to personally presence – a presence that we intend to develop for years to
safeguard the future of these iconic brands, Jaguar and Land programmes. thank him for his vision, unfaltering passion and commitment come.
Rover. in leading Jaguar Land Rover, delivering new technologies and
I am confident that these measures will enable the return to outstanding products and services.
From the Tata Group, in return, our commitment remains to long-term sustainable and profitable growth.
prioritise the well-being, the safety and health of everyone in I know that Jaguar Land Rover has a dedicated management
both our global network and in subsidiary operations such as I am equally confident that Jaguar Land Rover will play team and a highly skilled and committed workforce which will
Jaguar Land Rover. This shared enterprise and cooperation, a central part in the automotive industry’s shift to an enable it to continue to navigate the many challenges of today to
aligned to our support for every community in which we increasingly autonomous, connected, electrified and shared achieve a bright future. Jaguar Land Rover remains a key pillar of
operate, is a hallmark of the stakeholder capitalism that (ACES) mobility world. At the same time, we will prioritise the wider Tata Group.
NATARAJAN CHANDRASEKARAN
differentiates the Tata Group. simplification, synergies and scale within the Tata Motors Chairman
family, including working with partners when it makes sense With Tata Group’s active and constant support, Jaguar Land Jaguar Land Rover Automotive plc
At Jaguar Land Rover and at Tata Motors, we have seen the to do so. Rover has the resilience and capabilities to emerge successfully 2 July 2020
importance of this shared enterprise over the past year as we

B HUISE IFNEEXSESC U
C MTOI VDEE O
L F F I C E R ’ S S TAT E M E N T
This year, Jaguar Land Rover reimagined the Land Rover programme, is already ahead of schedule, having achieved Evoque and comprehensively updated Land Rover
Defender and celebrated winning an historic treble at the a pro-forma £600 million3 of savings in Q4 Fiscal 2019/20 Discovery Sport.
2019 World Car of the Year awards with the Jaguar I-PACE. against a new target of over £2 billion of cost improvements
We are proud to be the UK’s largest automotive manufacturer, by March 2021. Investing in Mobility
respected across the world for our outstanding, award-winning
products and innovative, customer-focused technologies. Our Products and Innovation Through collaboration and continuous investment
into R&D, we are leading the transition to
It is our people that make us what we are. I would like to thank We innovate relentlessly, to create exciting and inherently connected, seamless, integrated mobility. This year
everyone at Jaguar Land Rover and Tata for their outstanding diverse products with a compelling combination of British we celebrated the official opening of two world-
support. design and engineering integrity. Our portfolio is attracting a class facilities, our Advanced Product Creation
broad range of customers. Centre in Gaydon and the National Automotive
2020 will be remembered for the COVID-19 pandemic, Innovation Centre in Warwick, one of Europe’s
which has devastated lives, caused a global healthcare crisis This year, Jaguar refreshed its sport saloon XE, with an largest automotive R&D hubs. Both embody the
and disrupted businesses worldwide. Even before the virus enhanced exterior, an all-new luxurious interior and the spirit of collaboration and creativity to tackle
outbreak, the 2020s promised to be a decade of change for introduction of new, intuitive technology: wireless device society’s greatest mobility challenges.
the entire automotive sector. As a company, we will learn charging, embedded Apple Car Play and Spotify app and the
from these challenges and find even better ways to achieve first-in-segment ClearSight interior rear view mirror, feeding We are already leading the way with Project Vector,
our Destination Zero mission of zero emissions, zero accidents images of the road behind to a high-definition screen. a physical representation of our Destination Zero
and zero congestion. ambition to make our societies safer and healthier
Our iconic sports car, the Jaguar F-TYPE, has also been and our environment cleaner. Unveiled in February
Our Performance refreshed, receiving overwhelmingly positive customer and 2020, Vector is an advanced, autonomy-ready
media feedback. electric vehicle concept designed to meet the
Total revenues in Fiscal 2019/20 were £23.0 billion, with needs of both public and private mobility systems.
475,952 wholesale units (excluding wholesales from our Our leaps forward in electrification were evidenced by
China joint venture), an EBIT margin of -0.1%1 and a loss significant success for the Panasonic Jaguar Racing team in Our Purpose
before tax of £422 million1. the Formula E championship this year, securing two victories
and two podiums in a highly competitive field of renowned At this challenging time, our actions define who
Notwithstanding the impact of regulatory changes, shifting manufacturers. We have taken our learnings from race to road. we are today, and will be tomorrow. I am incredibly
consumer tastes, Brexit and ongoing trade tensions, during In November 2019, the groundbreaking Jaguar I-PACE added proud of the way our employees have mobilised to
the second and third quarters, sales for Jaguar and Land Rover the coveted Golden Steering Wheel to its vast collection of support our communities and emergency services,
were on a strong and profitable trajectory, underpinned by the prestigious awards. working beyond normal day-to-day boundaries.
pro-forma £2.9 billion2 of cost and cashflow improvements Our thoughts are with those directly affected by
achieved through our major transformation programme, For Land Rover, we go Above and Beyond when it comes to COVID-19 and the frontline staff fighting the virus
Project Charge by 31 December 2019. Our decisive turnaround capability and innovation. In September 2019, we launched around the world.
measures in China resulted in six months of continued double our new Defender to critical acclaim. It is, of course, our most
digit year-on-year growth. capable and durable Land Rover ever, simply unstoppable. Yet, We are preparing for a post-virus future in which
it is also relevant for the digital age, with the latest advances in private vehicles could play a far greater role than
The unprecedented disruptions caused by the COVID-19 connectivity, including the world’s first dual-modem, dual eSIM previously imagined. Our team has demonstrated
outbreak inevitably impacted sales and profitability in the design, Software-Over-The-Air (SOTA) for all key functional that we have a path forward towards long-
fourth quarter. Despite the many headwinds, retail sales of our and infotainment systems, offering ClearSight Ground View, term sustainable growth, with a lean cost base,
all-electric Jaguar I-PACE and our all-new Range Rover Evoque our innovative “invisible” bonnet as well as efficient drivetrains, disciplined capital allocation, a highly skilled
increased year-on-year by 40.0% and 24.7% respectively. In with mild-hybrid and, soon, plug-in hybrid technology. workforce and world class R&D.
addition, we sold more of our halo Special Vehicle products
than ever before, with over 9,500 vehicles retailed in Fiscal Plug-in hybrid technology is already available on both the Throughout all of this, our purpose will remain
2019/20, up 64% year-on-year. Range Rover and Range Rover Sport. Now, courtesy of our constant: to create experiences people love for life.
Premium Transverse Architecture (PTA), we have expanded our
We have reacted quickly and decisively to the pandemic, with electrified Land Rover vehicle line-up with our latest 1.5-litre,
an accelerated focus on improving cashflow and strengthening three-cylinder plug-in hybrid system offering emissions from
liquidity to pave the way for long-term EBIT margin only 32g/km and an all-electric range of up to 66km. This
improvement. Charge+, the next phase of our transformation technology is now available for both the all-new Range Rover
PROF SIR RALF D SPETH KBE FRENG FRS

1
Please see note 3 of the financial statements on page 70 for alternative performance measures
2
Pro-forma analytically derived unaudited estimate consisting of £1.5b of investment savings (compared to original planning targets), £0.7b improvement in inventory (since Q3 FY19) and £0.7b Chief Executive Officer
cost efficiencies (primarily selling, general and administration (SG&A), material costs and other) Jaguar Land Rover Automotive plc
3
Pro-forma analytically derived unaudited estimate consisting of £0.4b of investment savings (compared to original planning targets), £0.3b of cost efficiencies (primarily SG&A, material cost and 2 July 2020
other) partially offset by £0.1b for higher inventory

CHALLENGES AND OPPORTUNITIES
In the long term, geopolitical, technological and regulatory further risk to sales. Furthermore, if governments continue our new and refreshed models from this year onwards. Plug- Capital and mobility service arm, InMotion, we have developed
changes pose significant challenges for the automotive to enforce protectionist policies – for example, tariffs on in hybrid variants of the Range Rover Evoque, Land Rover new solutions in the urban mobility sector such as THE OUT
industry. These still require substantial levels of investment, imported vehicles – it will likely have a negative impact our Discovery Sport and the new Defender are due to go on sale – an on-demand premium car rental service, providing London
whilst the outbreak of COVID-19 has significantly impacted business performance. later this year, following the success of the Jaguar I-PACE. residents access to Jaguar and Land Rover vehicles – and
the business more recently. The disruption caused by the virus HAVN, a premium all-electric chauffeur service in London with
is rapidly changing the world and our way of life, giving rise Regulatory environment: Continued tightening of emissions In support of our electrification strategy, the manufacture a fleet of Jaguar I-PACE vehicles.
to new opportunities, most notably in relation to autonomous regulation drives up manufacturing costs, causes consumer of next-generation Electric Drive Units (EDUs), developed in
driving, vehicle connectivity, electrification and shared mobility uncertainty and adds additional cost in the form of increased partnership with BMW, will begin at our Engine Manufacturing Scalability and flexibility: Jaguar Land Rover’s family of
solutions (ACES). tax applied to non-compliant vehicles, for instance, the Centre in Wolverhampton later this year. The start of Ingenium petrol and diesel engines are based around a
move to the Worldwide Harmonised Light Vehicle Test operations at our Battery Assembly Centre in Hams Hall, modular, flexible and scalable all-aluminium design with a
CHALLENGES Procedure (WLTP) in Europe during 2018. Despite significant North Warwickshire, will also be a significant step forward. choice of three-, four-, and six-cylinder engines that also
improvements in fuel economy, reduction in CO2 and NOx support mild and plug-in hybrid propulsion technology. We will
COVID-19: The outbreak of COVID-19 has significantly emissions, the demand for diesel vehicles has declined – most Autonomous, connected and shared mobility: We continue to begin the roll-out of our next-generation Modular Longitudinal
impacted our financial results in the fourth quarter. Jaguar notably in the UK and Europe. This is largely as a result of introduce new driver assistance technologies into our vehicles Architecture (MLA) across our product portfolio in the coming
Land Rover enacted temporary plant shutdowns in Q1 of Fiscal government policy and tighter regulations, several countries and are developing more advanced self-driving technologies year. This flexibility and scalability supports the transformation
2020/21 with the restart of production at most of our plants having pledged to bring forward their strategies to phase out in response to legal frameworks permitting higher degrees of of our business with more streamlined engineering and
from Mid-May and through June 2020. Our global retailers the sale of internal combustion engine vehicles altogether. automation. manufacturing processes and increased commonality across
network has also been impacted by the lockdowns put in place our model range, with the aim of improving quality, reducing
in different markets but almost all of our retailers are now We continue to expand electrified powertrain options across The new Defender, for instance, is the first model to showcase cost and increasing operational efficiency.
open (fully or partially). Our supply chain has inevitably been our model range by offering our customers full battery our most advanced in-car technology to date: the Pivi Pro
disrupted by COVID-19, however, our supply base operations electric, plug-in hybrid and mild-hybrids on all of our new and infotainment system. This groundbreaking system features Collaboration: The technological and regulatory changes in the
are gradually returning and are supporting the restart of our refreshed vehicles, as well as continuing to refine our latest a more intuitive interface and Software-Over-The-Air automotive industry require continued significant investment.
own operations. Our people are our business and their safety technologically advanced diesel and petrol Ingenium engines (SOTA) updates, ensuring ultimate connectivity and enabling Automotive companies are facing escalating costs at a time
and well-being has been paramount during this crisis, with to ensure compliance with emissions regulations. customers to benefit from the latest software, wherever they of consumer uncertainty, when adoption and acceptance
many of our employees furloughed under the UK government’s are in the world. of electrified vehicles is slowly growing, but barriers still
job retention scheme. Gradually, our employees are beginning Mass adoption of electric vehicles (EVs): Widespread remain. In this challenging environment, wider collaboration is
to return to our sites and we have initiated health and safety consumer acceptance and take up of EVs is growing at pace, Increased urbanisation and localised transport policies essential to share financial and operational risks, which is why
protocols following government guidelines to ensure our but much still depends on the deployment of adequate are opening up new opportunities for Mobility as a Service we are working with pioneering organisations such as Waymo
operations can restart safely. We anticipate COVID-19 will charging infrastructure. Practical access to private charging (MaaS), most notably in cities. This year we launched a bold to develop and pilot self-driving technologies, and with BMW
have a significant impact on our financial performance in Q1 points and a reduction in the total ownership cost of EVs are new concept vehicle, Project Vector, which offers a solution to develop next-generation Electric Drive Units to power our
Fiscal 2020/21, with expected ongoing disruption for the still major factors in mainstream adoption. As EV sales rise, to today’s urban mobility challenges. Through our Venture future battery electric vehicles.
remainder of the coming Fiscal year dependent on the extent the relative costs should fall as scale efficiencies are realised
of the relaxation of social distancing measures globally, and in the industry. Fossil fuels remain the primary source of
the extent of the economic recovery thereafter. electric power generation. Until there is a more substantial
shift to decarbonise the energy production process, including
Trade relations: A fifth of our retail sales in Fiscal 2019/20 significant substitution into renewable energy sources,
were in Europe, and we continue to rely significantly on our achieving true low emissions mobility will be difficult.
supplier base in the EU, which accounts for 45% of the content
of our vehicles. Any barriers that pose a threat to frictionless OPPORTUNITIES
trade and the free movement of parts and labour will have an
adverse effect on our business operations. The UK formally New and refreshed models: We continue to launch new and
exited the EU on 31 January 2020 with a transition period to refreshed products as part of our long-term growth strategy.
facilitate an orderly withdrawal ending on 31 December 2020. During Fiscal 2019/20, sales of the all-new Range Rover
Uncertainty remains over the future terms of trade at the Evoque increased significantly. Sales of the refreshed Land
end of the transition period meaning we could be subject to Rover Discovery Sport also began and the refreshed Jaguar
WTO tariffs from January 2021. These additional costs pose F-TYPE was launched. The all-new Land Rover Defender was
an unnecessary risk to the business at a time when we have revealed at the Frankfurt Motor Show in September 2019 and
experienced unprecedented disruption caused by COVID-19. production began at our plant in Slovakia in January 2020.
We also continue to update our existing model range with
Trade tensions between the US and China continued during industry leading design and technology, including the latest
Fiscal 2019/20 , and although Jaguar Land Rover experienced infotainment systems and full battery electric and hybrid
a recovery in retail sales in China with double digit year on year propulsion.
growth in the second and third quarter, any further escalation
in trade tensions between the two countries could pose Electrification: We plan to offer electrified options on all of

BUSINESS MODEL OUR BLUEPRINT FOR SUCCESS
H O W O U R B U S I N E S S M O D E L C R E AT E S VA L U E OUR BLUEPRINT DEFINES US

Everything we do drives us towards creating experiences manufacturing and branding, to less obvious competencies, The Jaguar Land Rover Blueprint represents who we are and brands, helping us deliver on our objective of sustainable, long-
people love, for life. This is reflected in our Blueprint and in such as logistics and our industry-leading consumer finance what we stand for: our purpose, our passions and our values. term and profitable growth.
our business model, which allows us to generate sustainable, partnerships.
long-term value from highly visible areas of strength, such as Jaguar Land Rover is a company with a clear purpose and People connect with Jaguar and Land Rover, whether they are
vision. Our responsible, pioneering and customer-centric employees, customers or partners. Experiences link our two
approach to business is what makes people identify with our great brands, making memories for life.
Raw Supply Customer Skills and Investment

materials chain insights people
INPUTS OU R PURPOSE
EX PER IEN C ES
PEO PL E LOV E,
Innovation and FO R L IFE
Technology
Mobility Design and OU R BUSINESS

Services Engineering
DEST IN AT IO N
ZERO
Customer Strategic
Service Sourcing
Network
OU R PASSIONS
Q U A L IT Y IN N OVAT IO N PRO FITA BI LI T Y
Global Sales Manufacturing

Network Operations OU R VALUES
C U STO M ER FIR ST
Financial Logistics IN T EG R IT Y, R ES P O N S IB IL IT Y, EXC EL L EN C E, U N IT Y, PIO N E E R I NG

Services
OUTPUTS
Experiences Sustainable, Reduced Stronger D E S T I N AT I O N Z E R O - O U R M I S S I O N
people love, profitable environmental communities
for life growth impact Destination Zero - A world of zero emissions, zero accidents and zero congestion. Our ambition is to make our societies safer
and healthier and our environments cleaner. Through relentless innovation, we adapt our products and services to the rapidly
changing world around us.

JAG U A R L A N D ROV E R A U TO M OT I V E PLC A N N U A L R E P ORT 2 0 1 8 / 1 9 S T R AT E G I C R E P O R T
JAG U A R L A N D ROV E R A U TO M OT I V E PLC A N N U A L R E P ORT 2 0 1 8 / 1 9 S T R AT E G I C R E P O R T
G L O B A L R E TA I L S A L E S
R E TA I L S A L E S 1 BY R E G I O N R E TA I L S A L E S BY B R A N D
Jaguar Land Rover retail sales were 508,659 vehicles in Fiscal demand, with the trade tensions between the US and China Retail sales declined by 12.1% year-on-year in Fiscal 2019/20 7.7% year-on-year, primarily reflecting the introduction of the
2019/20, down 70,256 vehicles (12.1%) year-on-year, with impacting sales in Asia, notably South Korea. as increased sales of the all-new Range Rover Evoque and the all-new Range Rover Evoque, offset by lower sales of more
over two-thirds of that volume decline occurring in the fourth award-winning Jaguar I-PACE were offset by lower sales of established vehicles including the model year change over of
quarter as the outbreak of COVID-19 impacted sales and the Retail sales in Europe declined 16.1% year-on-year as a other models, including the impact of the model year change the refreshed Land Rover Discovery Sport, which was launched
supply of vehicles. combination of Brexit uncertainty, weak economic growth, over of the Land Rover Discovery Sport. from the China joint venture at the end of the fourth quarter.
particularly in Germany and Italy, diesel uncertainty, the
Retail sales in China declined by 8.9% year-on-year despite a reduction in subsidies for electric vehicles, notably in the Jaguar retail volumes were 140,593 vehicles in Fiscal Production of the new Land Rover Defender started in January
strong recovery in the second and third quarter, with double Netherlands, and the COVID-19 outbreak. 2019/20, down 22.0% year-on-year as increased sales of the 2020 with first deliveries to customers in the first quarter of
digit year-on-year growth. However, the outbreak of COVID-19 Jaguar I-PACE were offset by lower sales of other models. Fiscal 2019/20. In addition, Range Rover Evoque and Land
significantly impacted sales in China in the fourth quarter, Retail sales in the UK and North America were also down 9.6% Rover Discovery Sport Plug-in hybrid models are now on sale.
leading to a 43.2% decline compared to the fourth quarter in and 7.5% respectively, primarily as a result of the impact of Land Rover retailed 368,066 vehicles in Fiscal 2019/20, down
Fiscal 2018/19. COVID-19 in the fourth quarter.
Challenging conditions in overseas markets, as well as the Total retail sales from our China joint venture were 49,976 140,593 368,066
impact of COVID-19, resulted in a 20.3% decline in retail vehicles in Fiscal 2019/20, down 13.2% year-on-year. FISCAL 2018/19 - 180,198 FISCAL 2018/19 - 398,717
sales year-on-year. Bushfires in Australia, tensions and conflict 22.0% 7.7%

in the Middle East, and sluggish growth in Russia hampered
NORTH AMERICA EUROPE UK CHINA OVERSEAS

XJ2 F-PACE F-TYPE RANGE ROVER DISCOVERY DEFENDER
R E G IO
ONN FISCAL 2019/20 - 3,535 FISCAL 2019/20 - 43,388 FISCAL 2019/20 - 6,234 FISCAL 2019/20 - 47,290 FISCAL 2019/20 - 33,674 FISCAL 2019/20 - 249
REGION FISCAL 2018/19 - 4,072 FISCAL 2018/19 - 52,683 FISCAL 2018/19 - 7,870 FISCAL 2018/19 - 56,417 FISCAL 2018/19 - 40,839 FISCAL 2018/19 -
13.2% 17.6% 20.8% 16.2% 17.5% New model
XF E-PACE RANGE ROVER SPORT DISCOVERY SPORT

R E TA II LL SSAALLEESS FISCAL 2019/20 - 11,726 FISCAL 2019/20 - 37,894 FISCAL 2019/20 - 74,277 FISCAL 2019/20 - 74,568
FY 2019/ 20 — 129, 346 F Y 2019/20 — 10 7 ,0 3 7 FY 2019/20 — 1 0 6 ,6 12 F Y 2 0 1 9 / 2 0 — 9 0 ,1 2 4 FY 2019/20 — 75, 540
RY
B E TA
R EEI G
L IIS
G OAN
O NL E S FISCAL 2018/19 - 27,096 FISCAL 2018/19 - 46,711 FISCAL 2018/19 - 80,422 FISCAL 2018/19 - 87,977
FY 2019/ 20 — 129, 346 F Y 2019/20 — 10 7 ,0 3 7 FY 2019/20 — 1 0 6 ,6 12 F Y 2 0 1 9 / 2 0 — 9 0 ,1 2 4 FY 2019/20 — 75, 540
BY R EG I O N
FY 2018/19 — 139, 778 F Y 2018/19 — 127,566 FY 2018/19 — 117,915 F Y 2 0 1 8 / 1 9 — 9 8 ,9 2 2 F Y 2 0 1 8 / 1 9 — 94, 734 56.7% 18.9% 7.6% 15.2%
FY 2018/19 — 139, 778 F Y 2018/19 — 127,566 FY 2018/19 — 117,915 F Y 2 0 1 8 / 1 9 — 9 8 ,9 2 2 F Y 2 0 1 8 / 1 9 — 94, 734
Y E A R - O N -Y E A R
CHANGE
C
CHHAANNG G EE
7.5%
7.5% 16.1%
16.1% 9.6%
9.6% 8.9%
8.9% 20.3%
20.3%
XE I-PACE RANGE ROVER VELAR
PROPORTION
FISCAL 2019/20 - 21,949 FISCAL 2019/20 - 15,867 FISCAL 2019/20 - 52,902
PR
O F ORPEOTA
R TI LI OSNA L E S
FISCAL 2018/19 - 30,430 FISCAL 2018/19 - 11,336 FISCAL 2018/19 - 64,820
O
B YF R E GTA
I OI LN S A L E S
BY R EG I O N 27.9% 40.0% 18.4%
PROPORTION 25.4% 21.0% 21.0% 17.7% 14.9%
O F R E TA I L S A L E S 25.4% 21.0% 21.0% 17.7% 14.9%
BY R EG I O N
J L R T O TA L
J L R T O TA L
508,659
508,659
CARS RETA I LED
CARS RETA I LED 12.1%
12.1%
DECREASE YEAR
DECREASE YEAR RANGE ROVER EVOQUE
FISCAL 2019/20 - 85,106
508,659 12.1%
JAGUAR LAND C A R S R E TA I L E D DECREASE IN YEAR FISCAL 2018/19 - 68,242
R O V E R T O TA L
24.7%
1
Please see note 3 of the financial statements on page 70 for Alternative performance measures. “Jaguar Land Rover retail sales represent vehicle sales made by retailers to end customers and 2
No longer produced.
include the retail sale of vehicles produced from our Chinese joint venture, Chery Jaguar Land Rover Automotive Company Ltd. Wholesales represent vehicle sales made to retailers. The Group
recognises revenue on wholesales.”

C H I E F F I N A N C I A L O F F I C E R ’ S S TAT E M E N T FINANCIAL PERFORMANCE
C O N S O L I D AT E D I N C O M E S TAT E M E N T
The automotive industry continued to experience challenges tax and exceptional items of £494 million in Q4. As a result, Jaguar Land Rover revenue was lower in Fiscal 2019/20 compared to the prior year, however profitability improved, despite the
in Fiscal 2019/20, with the outbreak of COVID-19, tariff Jaguar Land Rover had a loss before tax and exceptional items impact of the COVID-19 outbreak in the fourth quarter, primarily as a result of cost efficiencies achieved through Project Charge,
and trade tensions, notably between the US and China, and of £393 million3 in Fiscal 2019/20, slightly worse than the loss lower depreciation and amortisation as well as favourable foreign exchange.
Brexit uncertainty in particular impacting the UK and Europe. before tax and exceptional items in Fiscal 2018/19. However,
This is in addition to rapid technological changes relating to the EBIT margin was nearly breakeven (-0.1%) and 60 bp better REVENUE
electrification, automation and connectivity, as well as a more than Fiscal 2018/19. The improvement in margins primarily Revenue was £23.0 billion in Fiscal 2019/20, down 5.2% from
FISCAL 2019/20 / £23.0BN £23.0bn
stringent regulatory environment and continuing decline in the reflects cost efficiencies as a result of Project Charge, lower £24.2 billion in the prior year as wholesales3 (excluding the China
demand for diesel-powered vehicles as a result of government depreciation and amortisation driven by the asset impairment joint venture) declined 6.3% year on year to 475,952 units primarily FISCAL 2018/19 / £24.2BN
policies and taxation. taken in Fiscal 2018/19, and favourable FX, offset by lower reflecting the lower sales across all regions except North America FISCAL 2017/18 / £25.8BN
sales and higher incentives, including the impact of COVID-19. and also the impact of COVID-19 in the fourth quarter. For similar
Jaguar Land Rover’s financial performance has been adversely reasons retail sales3 (including sales from the China joint venture)
impacted as a result of these challenges but the business has Free cash flow in Fiscal 2019/20 was negative £702 million3 declined 12.1% year on year to 508,659 units.
responded with decisive action through Project Charge (now after total investment spending of £3.3 billion3 and a £366
Charge+), which achieved a further pro forma £600m1 of cost, million working capital inflow, including the unfavourable impact ADJUSTED EBITDA3
profit and cash flow improvements in Q4 to increase lifetime of COVID-19 on profits and working capital. Nevertheless, this Adjusted EBITDA was £2.0 billion3 (8.7% margin) in Fiscal 2019/20, FISCAL 2019/20 / £2.0BN / (8.7% MARGIN) £2.0bn
improvements since launch in Q2 Fiscal 2018/19 to £3.5 billion2. represented a £563 million improvement on the prior year, broadly the same as the EBITDA of £2.0 billion3 (8.2% margin) in (8.7% margin)
FISCAL 2018/19 / £2.0BN / (8.2% MARGIN)
reflecting a £516 million reduction in investment spending and the previous fiscal year, supported by cost efficiencies as a result of
Given the continuing external challenges, compounded by Q4 free cash flow was positive £225 milion. Project Charge and favourable foreign exchange with the weakening FISCAL 2017/18 / £2.8BN / (10.8% MARGIN)
COVID-19, Jaguar Land Rover has increased the Charge+ target of the Pound.
for Fiscal 2020/21 to £1.5 billion of cost, profit and cash flow Jaguar Land Rover has continued to maintain strong liquidity.
improvements. Complementing this, the Accelerate programme We raised £1.6 billion of funding in the third quarter including ADJUSTED EARNINGS BEFORE INTEREST
remains set to deliver longer-term structural improvements the £625 million, five-year loan backed by a £500 million UKEF A N D TA X ( E B I T ) 3
through the delivery of superior product quality, competitive guarantee, a new £100 million fleet buy back facility and €1
cost base and improved sales performance. Furthermore, Jaguar billion of new five- and seven-year bonds. Total cash and cash Adjusted loss before interest and tax (EBIT) was £24 million3 (-0.1% FISCAL 2019/20 / £(24)MN / (-0.1% MARGIN) £(24)mn
Land Rover continues to execute its product and technology equivalents, deposits and investments at 31 March 2020 were margin in Fiscal 2019/20 compared to a loss before interest and (-0.1% margin)
FISCAL 2018/19 / £(180)MN / (-0.7% MARGIN)
plans, including the start of new Land Rover Defender sales and £3.7 billion3 after repaying $1 billion of maturing bonds in the tax of £180 million3 (-0.7% margin) in Fiscal 2018/19. The EBIT in
the launch of Range Rover Evoque and Land Rover Discovery year. Total liquidity was £5.6 billion3, including a £1.9 billion Fiscal 2019/20 compared to the EBIT in the prior year reflects lower FISCAL 2017/18 / £971MN / (3.8% MARGIN)
Sport plug-in hybrids (with a new three- cylinder Ingenium undrawn revolving credit facility. Total debt at year-end was depreciation and amortisation, as a result of the impairment in Fiscal
engine). £5.9 billion. We have since completed in Q1 Fiscal 2020/21 a 2018/19, partially offset by our share of losses incurred by the China
£567 million equivalent 3-year loan facility in China and a £63 joint venture and the impact of COVID-19 in the fourth quarter.
Jaguar Land Rover retail sales3 were 508,659 vehicles in Fiscal million increase in a short-term working capital facility.
2019/20, down 12.1% year-on-year, including a significant L O S S B E F O R E TA X ( P B T )
impact on sales in the fourth quarter as well as other market Looking ahead, we anticipate that the challenges facing our
challenges described above. Retail sales of the all-new Range industry will continue and that the impact of COVID-19 is likely The loss before tax and exceptional items was £393 million3 in
FISCAL 2019/20 / £(0.4)BN £(0.4)bn
Rover Evoque were significantly higher (up 24.7%) as were sales to continue to impact the business during 2020. However, Fiscal 2019/20, only slightly worse than the loss of £358 million3
of the all-electric Jaguar I-PACE (up 40.0%) but sales of other we expect Charge+, Accelerate and a strong pipeline of new last year including the impact of COVID-19. This reflects the higher FISCAL 2018/19 / £(3.6)BN
models were lower, reflecting the impact of COVID-19 and and refreshed products to put us in the best possible place to EBIT offset by higher interest costs, associated with increased
FISCAL 2017/18 / £1.5BN
other market factors, with the biggest decreases experienced withstand these challenges and fundamentally strengthen the indebtedness, as well as some unfavourable revaluation of hedges
by Jaguar saloons. Wholesales (excluding sales from our China business thereafter. and foreign currency debt as the Pound significantly weakened in
joint venture) were 475,952 vehicles, down 6.3% year-on-year, the fourth quarter following the outbreak of COVID-19. After £29
generating revenues of £23.0 billion. million4 of exceptional items, the loss before tax in Fiscal 2019/20
was £422 million3 compared to the £3.6 billion3 loss before tax in
Jaguar Land Rover financial performance in Q2 and Q3 Fiscal 2018/19 (which included a £3.1 billion4 impairment charge
was significantly improved as a result of improved China and £149 million4 of one-time separation costs related to the
performance with double digit sales increases and the benefits headcount reduction programme).
ADRIAN MARDELL
of Project Charge. These trends were expected to continue into Chief Financial Officer L O S S A F T E R TA X ( PAT )
Q4 but were more than offset by reduced sales and increased Jaguar Land Rover Automotive plc
incentives related to COVID-19 which resulted in a loss before 2 July 2020 The loss after tax was £469 million in Fiscal 2019/20, compared
FISCAL 2019/20 / £(0.5)BN £(0.5)bn
to the £3.3 billion loss after tax and exceptional items in the prior
1
Pro-forma analytically derived unaudited estimate consisting of £0.4b of investment savings (compared to original planning targets), £0.3b of cost efficiencies (primarily SG&A, material cost and year. A tax charge of £47 million was recorded in Fiscal 2019/20 FISCAL 2018/19 / £(3.3)BN
other) partially offset by £0.1b for higher inventory
2
Pro-forma analytically derived unaudited estimate consisting of £1.9b of investment savings (compared to original planning targets), £0.6b improvement in inventory (since Q3 FY19) and £1.0b
compared to a £308 million tax credit in Fiscal 2018/19. For further FISCAL 2017/18 / £1.1BN
cost efficiencies (primarily SG&A, employee and material costs and other) disclosure on our approach to tax, please see pages 35 to 36.
3
Please see note 3 of the financial statements on page 70 for Alternative performance measures.
4
Please see note 4 of the financial statements on page 73 for the detail of exceptional charges.

FINANCIAL PERFORMANCE (CONTINUED)
C O N S O L I D AT E D C A S H F L O W C A P I TA L S T R U C T U R E
Free cash flow was negative £702 million1 in Fiscal 2019/20, after total investment spending of £3.3 billion1, including the At 31 March 2020 we had £5.6 billion1 of total liquidity, billion. Total debt outstanding at 31 March 2020 was £5.9
unfavourable impact of COVID-19. comprising cash and financial deposits of £3.7 billion1 and billion, giving a net debt position of £2.2 billion at the fiscal
an undrawn committed revolving credit facility (RCF) of £1.9 year end.
(£ million)
2,771 366 (152) (£ million) Debt maturity profile Total Debt £5,8844*
(3,294)
Total liquidity £5,599
100
573
(393) (702) (111) 1,935 541
undrawn RCF
591 812
1,935 104
PBT EXCL. D&A WORKING TAX TOTAL FREE CHANGES CHANGE IN
3,664 3,831
EXCEPTIONAL AND OTHER CAPITAL AND PAID INVESTMENT1 CASH FLOW1 IN DEBT CASH AND undrawn RCF
125
ITEMS FY201 ACCRUALS FINANCIAL 31 Mar cash 94 125 125 1,026 406
DEPOSITS 100 299 162 400 806 650 892
Total CY20 CY21 CY22 CY23 CY24 CY25 CY26 CY27 Total
T O TA L P R O D U C T A N D O T H E R I N V E S T M E N T 1
Liquidity Debt
Investment spending in Fiscal 2019/20 was £3.3 billion (14.3% of revenue), compared
to £3.8 billion (15.7% of revenue) in the prior fiscal year and significantly better than Cash and financial deposits Bonds $1b loan Leases (IFRS16) UKEF facility Fleet buyback inventory facility
initial guidance of £4 billion for the year on account of significant Project Charge and FISCAL 2019/20 / £3.3BN £3.3bn *Total debt also includes £16 million of other debt and a fair value adjustment of £45 million, partially offset by deferred fees of £34 million.
Charge+ savings, primarily in non-product investment. Of the £3.3 billion investment FISCAL 2018/19 / £3.8BN
spending, £421 million was expensed in adjusted EBIT and the remaining £2.9 billion LIQUIDITY AND NET DEBT BORROWINGS AND INDEBTEDNESS
FISCAL 2017/18 / £4.2BN
was capitalised. Total research and development accounted for £1.8 billion (54.3%)
of investment spending, while tangible and other intangible assets accounted for the Total cash and cash equivalents, deposits and investments At 31 March 2020, we had £5.9 billion of debt outstanding,
remaining £1.5 billion (45.7%). at 31 March 2020 were £3.7 billion1 (15.9% of revenue), comprising £3.9 billion of unsecured bonds (including £45.1
compared to £3.8 billion1 the prior year. The balance as at million fair value adjustments partially offset by £15.3
W O R K I N G C A P I TA L 31 March 2020 comprised cash and cash equivalents of million of net capitalised fees), a £801 million ($1 billion)
£2.3 billion, of which £450 million was held in overseas unsecured loan (including £10.6 million of capitalised fees),
Working capital inflows (including non-cash accruals) were £366 million during the subsidiaries, and deposits and other investments of £1.4 a £565 million unsecured loan, 80% of which is backed by a
FISCAL 2019/20 / £366MN £366mn
year, reflecting a £531 million improvement in trade receivables (including £392 billion. Including the £1.9 billion revolving credit facility (fully guarantee from UKEF (including £8.1 million of capitalised
million of sold receivables drawn under the $700 million debt factoring facility) and a FISCAL 2018/19 / £405MN undrawn but committed until July 2022), total liquidity was fees), a £100 million short-term loan secured on vehicles
£147 million improvement in inventory, partially offset by a £548 million deterioration FISCAL 2017/18 / £81MN £5.6 billion1 at 31 March 2020 versus £5.7 billion1 for the bought back from fleet arrangements, £541 million of leases
in payables. The remaining £236 million includes a grant received in relation to our previous fiscal year. accounted as debt under IFRS 16 and £16 million of other
manufacturing operations in Slovakia, R&D credits and a reduction in provisions. debt. Of the £5.9 billion of debt, £2.0 billion are denominated
Considering the total cash and cash equivalents, deposits and in Pounds Sterling, £2.0 billion in Euros and £1.7 billion in US
FREE CASH FLOW1 FISCAL 2019/20 / £(0.7)BN £(0.7)bn investments of £3.7 billion1 and total indebtedness of £5.9 Dollars with the remaining £0.2 billion included as leases in
Free cash flow was negative £702 million in Fiscal 2019/20 after £3.3 billion of total FISCAL 2018/19 / £(1.3)BN
billion, net debt was £2.2 billion at the end of the fiscal year. other currencies, primarily in Chinese Renminbi. We also have
investment spending, £366 million of working capital inflows and £152 million paid in This compares to a net debt position of £736 million at the a balanced profile of maturing debt, with 28% maturing after
taxes. FISCAL 2017/18 / £(1.0)BN end of Fiscal 2018/19. five years, 62% per cent in one to five years and the remaining
10% maturing within one year.
C H A N G E I N T O TA L C A S H A N D C A S H E Q U I VA L E N T S , Net cash/(debt) at 31 March 2020
DEPOSITS AND INVESTMENTS
Jaguar Land Rover issued £1.6 billion of new debt in the
Cash and cash equivalents, deposits and investments totalled £3.7 billion at 31 March 1 3,775 3,664 third quarter of Fiscal 2019/20, including the £625 million
2020, down £111 million compared to £3.8 billion1 at the end of Fiscal 2018/19. The five year amortising loan (backed by a UKEF guarantee)
decrease is explained by the negative free cash flow of £702 million1 partially offset in October 2019, the £100 million fleet buy back facility
by a £591 million net increase in debt. During the third quarter Jaguar Land Rover in November 2019 and €1.0 billion of new five- (5.875%
FISCAL 2019/20 / £3.7BN £3.7bn
issued £1.6 billion of new debt, including the £625 million, five-year loan backed by FY19 FY20 coupon) and seven-year (6.875% coupon) bonds in November
a £500 million UKEF guarantee, a new £100 million fleet buy back facility and €1 FISCAL 2018/19 / £3.8BN
(736) and December 2019. During the year £1.0 billion of debt was
billion of new five- and seven-year bonds. Jaguar Land Rover repaid a $500 million FISCAL 2017/18 / £4.7BN (2,220)
repaid including £114 million equivalent under a previous
bond in November 2019 and a $500 million bond in March 2020 as well as £52.1 4,5113 uncommitted invoice debt factoring in April 2019, a $500
5,8844
million of the UKEF backed loan which amortised in March 2020. In addition, £114 million bond in November 2019 and a $500 million bond in
million was repaid against a working capital facility that matured in the year and was March 2020 as well as £52.1 million tranche of the UKEF
replaced with the new $700 million debt factoring facility (off-balance sheet financial Total cash Total debt Net cash/(debt) backed loan which amortised in March 2020 and £72 million
arrangement). of capital lease repayments. Please see note 25 on page 92
for further disclosure on our loans and borrowings.
1
Please see note 3 of the financial statements on page 70 for Alternative performance measures 3
Includes £31 million of finance leases accounted as debt - the debt at 31 March 2019 does not reflect IFRS 16 adjustments.
4
Includes £541 million of leases accounted as debt under IFRS 16.

APPROACH TO RISK P R I N C I PA L R I S K S
We endeavour to manage and monitor risk factors that could impact our plan for long-term sustainable growth. Risks are identified, assessed and rated against a defined set of criteria considering the probability of occurrence and potential
impact to the business. Plotting our principal risks helps to visualise overall exposure from a corporate perspective.
# Annual Report 19/20 Top10

DEFINING RISK RESPONSIBILITY FOR RISK
High
1
2 1 Financial Competitive business efficiency
3
Risks are uncertain events that could materially impact The Board of Management is ultimately responsible for the 4 Global economic and geopolitical
7 6 2 Strategic
environment
organisational objectives – negative for threats and positive management of risks within Jaguar Land Rover. However,
PROBABILITY
5
for opportunities. We recognise that risk is inherent in all the wider organisation is responsible for the proactive day- 8
3 Strategic Brand positioning
business activities and must be balanced when assessing to-day management and control. The Board of Management 9 Distribution channels/retailer
returns. Successful management of risk is therefore key members review our key risks to monitor progress of 4 Operational
performance
10
to accomplishing our strategic objectives and the long- remediation actions. The Risk Management Committee
5 Operational IT system and security
term sustainable growth of our business. Enterprise risk provides oversight of current and emerging risks at a
management (ERM) is used as a framework to identify, detailed level and are reviewed against acceptable levels Legal and Environmental regulations and
6 Compliance compliance
assess, manage and continually monitor and report on key of exposure. Principal risks and exceptions are reported to
risks that could affect our business. the Audit Committee regularly to assist in the decision- 7 Operational Supply chain disruptions
making process and ensure adequate controls are in place Low IMPACT High 8 Operational Human capital
to protect the organisation.
9 Strategic Rapid technology change
High exposure risks that are more likely to materially impact our
ability to achieve business objectives Legal and Unethical and prohibited business
10 Compliance practices
Medium exposure risks that could impact business objectives
unless monitored and managed
Low exposure risks that are more unlikely to materialise and impact
OUR RESPONSIBILITY FRAMEWORK

our business objectives
C H A N G E S T O O U R P R I N C I PA L R I S K S D U R I N G F I S C A L 2 0 1 9 / 2 0
Jaguar Land Rover Automotive plc Board
The COVID-19 global pandemic has had a significant impact We are seeing evidence of a recovery in sales in most
on our financial performance and business operations with markets, notably China, however, there remains considerable
social distancing measures and enforced lockdowns by uncertainty about the extent, speed and regional differences
governments across all of our key regions. As a result our of any recovery including any longer term impacts on our
retailer network and sales have been significantly impacted. business and the possibility of a second wave of the pandemic.
In addition, we enacted temporary plant closures at our We continue to maintain strong liquidity including our £1.9b
Board of Management Audit Committee
joint venture in China in January and in the UK, Europe and committed revolving credit facility which remains undrawn.
elsewhere from the end of March with similar shutdowns in
our supply base. We have since restarted production at our Two principal risks have been introduced into the top 10 listing:
China joint venture in March and in most of our other plants
Risk Management Committee from mid-May. However, we do expect a considerable impact 04. Distribution channels/retailer performance
on our financial performance in Q1 Fiscal 2020/21 with free 07. Supply chain disruptions
cash outflow of £1.5 billion through April and May including a
one-time working capital outflow of £1.2 billion related to the Mitigating actions are in place (as detailed on pages 21 to 22)
temporary plant shutdowns that began in March. Free cash to address the higher intensity of risk to the business.
outflow for Q1 Fiscal 2020/21 is expected to be less than £2
billion. The health and wellbeing of our employees is our first Two principal risks have moved out of the top 10 listing:
FIRST LINE SECOND LINE THIRD LINE priority with many of our employees furloughed under the UK
OF RISK DEFENCE OF RISK DEFENCE OF RISK DEFENCE
governments job retention scheme. We have developed robust Diesel uncertainty
Control of risks Oversight and confirmation of controls Independent controls assurance protocol and guidelines to support a safe return to work for our Product liability and recalls
Business operations risk management ERM and oversight functions Internal/external audit employees adopting strict social distancing measures across
our business to protect and reassure our workforce as they Plans and mitigating actions put in place since Fiscal 2018/19
return to work. have proved effective in reducing our overall exposure in these
areas to within acceptable levels.
1
This is an analytically derived unaudited estimate to aid the readers of this report in understanding the financial impact on our business.

P R I N C I PA L R I S K S P R I N C I PA L R I S K S
STRATEGIC CONSEQUENCES MITIGATIONS OPPORTUNITIES OPERATIONAL CONSEQUENCES MITIGATIONS OPPORTUNITIES
2 Global economic and Given our global distribution We continue to closely Global economic growth in 4 Distributional channels and Sales and service Technological advances are A network which is rightsized
geopolitical environment of sales, changes in the monitor and risk assess global developed and emerging markets retailer network performance directly changing relationships with for the market will lead
Jaguar Land Rover is exposed to external environment could developments, implementing presents opportunities to increase In order to optimise market impacts customer customers through our digital to efficient investment
have a significant impact on mitigation plans where sales. Global growth and rising performance, sales channels must satisfaction and retention, presence in an ever-connected to optimise sales. Putting our
changes in the global economic in addition to reputational world. Market and retailer demand customer first by quickly and
the global demand for our appropriate (e.g. COVID-19 incomes create opportunities
and geopolitical environment, as vehicles. Our global sourcing resilience planning). We also both in new and existing be aligned to the buying habits damage for the brands. is closely monitored in order to robustly resolving problems will
well as other external factors. strategy and supply chain continue to maintain our geographical markets as well as of our customers through the Failure to deliver sales due optimise our retailer network and improve customer satisfaction
Trade tensions, protectionism, resilience could be negatively international manufacturing new and existing segments. appropriate mix of advanced to retailer capacity, poor invest in growth at the right place and retention. Beneath all of
wars, terrorism, natural disasters affected by disruption caused footprint and a balanced retail and traditional methods. Our service or capability will and time.Digital channels such as this, the strength of our brands’
and humanitarian challenges may by external factors beyond sales profile across our key sales global presence must align to lead to uncompetitiveness online sales and remote servicing reputation in the market
adversely impact our business, our control. COVID-19 as had regions. market demand, with trained within particular markets. via SOTA improves customer will lead to growth compared
more recently the COVID-19 a significant impact on our and capable people serving the Due to COVID-19 enforced service and helps to maintain to the competition.
financial performance and needs of our customers. Service lockdowns across all of our and strengthen the relationship
pandemic crisis and Brexit key regions has adversely between us, our retailers and
business operations.
uncertainty as we move towards and repair capacity has to be impacted our retailer customer in the normal course
the end of the transition period on correlated to the needs of the network and therefore of business and during times of
31 December 2020. customers within each region. vehicle sales uncertainty and disruption.
3 Brand positioning Our potential inability The launch of the new Defender, We continue to strengthen our 5 IT systems and security The loss of sensitive and/ We will maintain a security By implementing and
Brand positioning is becoming to successfully position, with industry leading capabilities brands by creating greater brand New and emerging technologies or personal data could lead strategy to achieve “Security resourcing an ongoing security
increasingly challenging as the maintain and articulate the from both a physical and digital association through innovation, generate ever increasing levels to legal action and fines of By Design” by implementing strategy, we will create a strong
dynamics of the automotive strength of our brands as perspective, reinforces our brand technological advancement and up to 4 per cent of global consistent, comprehensive security information security control
well as failing to develop new strategy. We regularly monitor customer trends and feedback of known and unknown threats
market (e.g. automated driving, turnover (under GDPR), governance and procedures as environment by proactively
products/technologies that the perception of our brands into our expanding and evolving to internet-connected devices together with negative well as provide education for staff, monitoring and reacting to
electrification, digital connectivity) meet customer preferences, to quickly identify and address product portfolio and services. including vehicles, whilst recent reputational impacts. vendors and suppliers to embed emerging cyber threats, and
and the competitive pressures and or suffering delayed product uncertainties that may arise to With a number of upcoming global security incidents seriously Successful attacks against best practices. We are also building protect the Company from
disruption from existing automotive launches, could impact inform how we articulate brand launches we will further enhance impacting both large and our IT infrastructure could a Security Operations Team using attacks. As new technologies
manufacturers and new entrants. demand for our products. values to customers. our customer offering through small organisations indicate an lead to major disruptions to internal and cloud-ready tools to and business practices are
new/enhanced models and unprecedented increase in the our business operations, up detect and address current and adopted, we will also embed
powertrain/feature innovation. number of cyber attacks against to and including impacting emerging cyber security threats. new security technologies and
corporate entities. our ability to make and controls to ensure that risk
sell products for extended to the business is reduced to
9 Rapid technology change Any delay in the launch of We continue to prioritise the We engage with the relevant periods (3 months +). acceptable levels.
Technology in the automotive technologically intensive development of technology- industry and government
industry is evolving rapidly, products, or if the technology enabling platforms and feature partners to support the delivery 7 Supply chain disruptions Supply chain disruptions Jaguar Land Rover operates a Operating an effective Supply
in our products becomes delivery. Ensuring alignment with of autonomous, connected, Jaguar Land Rover’s ability if not managed, could robust and effective Supply Chain Chain Risk Management
particularly with respect to have an adverse effect Risk Management governance governance framework
relatively obsolete, could our Destination Zero mission and electrified and shared (ACES) to supply components to
autonomy and connectivity. Falling impact sales as customers delivering experiences people technologies. Continued production volume, framework within Global provides us with the
Manufacturing operations at the
behind with technology trends will move to purchase products love, for life. investment in the reskilling of our revenue and profitability, Purchasing with full engagement opportunity to proactively
required time is of paramount customer satisfaction and from the senior management support and engage with our
increase the risk of not meeting the from our competitors. workforce enables us acquire the importance in achieving production reputation. As a result of team. It is designed to proactively supplier base in diagnosing and
expectations of both our new and new skills necessary in achieving
ACES targets. schedules and consumer demand. the enforced lockdowns and systematically identify, mitigating potential disruptions
existing customers.
The importance of managing this due to COVID-19 our supply prioritise and manage the impact before they occur
risk has been emphasised through base was impacted and we of potential supply events within
the unprecedented COVID-19 crisis enacted our own temporary our business and such active
and its effects on our global supply shutdowns at the China joint monitoring processes has been key
LEGAL & COMPLIANCE CONSEQUENCES MITIGATIONS OPPORTUNITIES base. venture plant in January and
elsewhere in March
in managing through the disruption
caused by COVID-19 with our
suppliers .
6 Environmental regulations We incur additional We have invested substantially We were the first premium
and compliance compliance costs, including in the development of our manufacturer to introduce a
8 Human capital Failure to develop new The Jaguar Land Rover Academy The transformation of our
We are subject to a rapidly incremental investment, to next generation modular battery electric vehicle into skills and capabilities will has recently been established to business presents us with a
avoid facing significant civil architecture, the in-house mainstream production with Jaguar Land Rover’s Destination
evolving regulatory landscape with Zero mission requires an engaged impact on our ability to focus on developing the critical unique opportunity to engage
and regulatory penalties, and manufacture and continued the Jaguar I-PACE. We have deliver innovative products commercial and technical skills our people in a meaningful way
associated laws, regulations and our competitors may gain an refinement of our internal introduced PHEV technology in workforce with core capabilities
policies that all impact the vehicles and services . COVID-19 required for the future. Our around the future of Jaguar
advantage by adopting new combustion engines and Range Rover, Range Rover Sport in new and emerging skill areas has resulted in a significant employees safety and wellbeing Land Rover and to participate
we produce and our manufacturing emissions-reducing and fuel- electrification technologies, with Velar, E-Pace, Discovery and a collaborative and innovative
facilities (e.g. CO2 and NOx proportion of the workforce is paramount and we have in both shaping and delivering
efficient technologies before including mild and plug-in Sport and Evoque PHEV models culture for our transformation to be furloughed under the maintained clear dialogue with our the changes to help build an
emissions and fuel economy). we do. hybrids as well as battery being introduced in Fiscal 20/21. to be successful. Our purpose of under the UK governments workforce during the pandemic, organisation and culture for
electric vehicles. We retain From this year forwards we will job retention scheme. Robust made critical changes to ensure a future success.
an EU derogation permitting have an electrified option in every ‘Experiences people love for life’
has the safety and well-being of our protocol and guidelines to safe return to work and continue
alternative fleet average CO2 nameplate. The introduction support a safe return to work to support our employees
targets. of manufacturing both electric people at its core, and necessitates
an approach which focuses on for our employees has been under a number of personal and
drive units (Engine Manufacturing adopted including strict professional initiatives.
Centre) and battery modules customer journey and service social distancing measures.
(Battery Assembly Centre) capabilities.
provides us with the opportunity
to strengthen our in-house
electrification capability.
FINANCIAL CONSEQUENCES MITIGATIONS OPPORTUNITIES
10 Unethical and prohibited Non-compliance with ethical Our Code of Conduct sets We are committed to conducting 1 Competitive business If we are unable to deliver Project Charge and Charge+ have so far Enhanced overall business
business practices and/or legal practices may out the behaviours that we business in an ethical manner to efficiency these objectives, our delivered £3.5b of cost and cash savings, efficiency will yield greater
Delivering on our business and ability to achieve our with a further £1.5b targeted over FY21. opportunities for growth
Our international activities materially impact our expect of our employees, instil a reputation of trust and financial targets may limit Longer term, Project Accelerate aims to and continued investment
reputation and could result including conforming to the reliability. Such qualities foster strategic objectives is key to
expose us to increasingly diverse our capability to invest transform our business by improving sales in our product portfolio and
in restrictions being placed highest moral and ethical greater business relationships with sustaining profitable and cash and fund future products performance, quality and cost efficiency new technologies.
and complex legal and other on our operations, causing standards and complying with suppliers, retailers, governments accretive growth. Any uncertainties and technologies. of future products. Furthermore, we are
frameworks (e.g. GDPR) in a variety business disruption. applicable laws, including those and partnerships with other third that materially compromise the COVID-19 as had a introducing our next-generation Modular
of jurisdictions and, as such, we relating to anti-bribery and parties. achievement of our objectives significant impact on our Longitudinal Architecture (MLA) and
need to maintain legal and ethical corruption, data protection, fair
could unfavourably impact business and uncertainty continue to collaborate with partners
standards across the global competition, sanctions and remains over the long to develop new technology e.g. Electric
export controls. our operational and financial
locations in which we operate. term concequences to our Drive Units (BMW).
performance.
business.
STREAMLINED ENERGY AND CARBON REPORTING
Jaguar Land Rover’s Destination Zero mission for zero based approach using UK average grid intensity conversion As part of our Destination Zero mission we are evaluating our plug-in hybrid and mild hybrid vehicles as well as continuing to
emissions, zero accidents and zero congestion is built on factors (2019). However, Jaguar Land Rover continues wider carbon footprint. From 2020 every new Jaguar Land offer the latest diesel and petrol engines.
the solid foundations of a long-standing commitment to the to purchase 100% renewable REGO (Renewable Energy Rover model line will be electrified, giving our customers
environment and society. Guarantee of Origin)-backed zero carbon electricity for all even more choice. We will introduce a portfolio of electrified Please visit our website for further information on how we are
core UK operations. products across our model range, embracing fully electric, electrifying our product portfolio.
Our vision is a world of sustainable, smart mobility: our
responsible future. Today’s industrial revolution is driven In addition to this investment in renewable energy, energy
by waste reduction, decarbonisation, improving air quality, saving projects such as solar panels and LED lighting have made
increasing automation and advancing technology. consistent reductions in actual consumption. In September
2019, for instance, Jaguar Land Rover unveiled world-leading
We will use resources responsibly to help build a better society new facilities at its Gaydon site in Warwickshire, creating one
and a cleaner environment – and in doing so, drive sustainable, of the UK’s most sustainable non-domestic buildings and
profitable growth. the country’s largest automotive creation and development
centre.
A landmark on Jaguar Land Rover’s Destination Zero journey
is achieving and maintaining Carbon Neutral status. The The Gaydon site forms an integral part of Jaguar Land Rover’s
culmination of a long-term environmental management Destination Zero mission, and up to 20% of the energy to
plan launched in 2009, Jaguar Land Rover was certified on run the new Advanced Product Creation Centre located at
31 January 2020 as achieving Carbon Neutral operations our engineering centre in Gaydon comes from 2,800m² of
for the second consecutive year by the Carbon Trust. This photovoltaic solar panels on the roof. The remainder of the
official recognition confirmed that business operations met site’s electricity is derived from 100% renewable sources. The
the internationally recognised PAS 2060 standard between same glazing technology as the Eden Project was used to bring
April 2018 and March 2019 across Jaguar Land Rover vehicle natural light into the building wherever possible and make
manufacturing assembly operations, engine manufacturing it more energy efficient. Collectively, such enhancements
and product development sites in the UK. contribute to a drastic reduction in energy consumption.
In line with the UK Government’s Streamlined Energy & Carbon In the UK, Jaguar Land Rover’s operating CO2 emissions are
Reporting (SECR) framework, the table below shows Jaguar down 71% versus a baseline taken in 2007, and this includes
Land Rover’s UK operational energy and carbon footprint. This the purchase of REGO-backed electricity. Furthermore, the
represents 71% of the company’s manufacturing volume for average amount of energy used to build one of our vehicles
the Fiscal 2019/20. The CO2e is calculated with a location- has reduced by 33% since 2007.
U K O P E R AT I O N S 2 0 1 9 / 2 0
Energy consumption used to calculate emissions: kWh 1,274,998,136

Emissions from combustion of gas tCO2e (Scope 1) 135,999
Emissions from combustion of fuel (Scope 1) 10,734
Emissions from business travel in rental cars or employee-owned
vehicles where company is responsible for purchasing the fuel (Scope 3) 2,640
Emissions from purchased electricity (Scope 2 location-based) 123,568
Total gross CO2e based on above 272,941
Intensity ratio: tCO2e/£m 11,87
Data is compiled for UK locations in accordance with GHG protocols for finance control.

INTRODUCTION TO GOVERNANCE
Statement of Corporate Governance Arrangement Section 172 Companies Act 2006 SECTION 172 DECISIONS
d) The impact of the company’s Further information on the Group’s initiatives and commitment to the environment and society through the
For the year ended 31 March 2020, under the Companies The Wates Corporate Governance Principles for Large Private operations on the community Destination Zero mission can be found in the Annual Report and the company website.
(Miscellaneous Reporting) Regulations 2018, the Group has Companies provides a framework for the Group to not only and environment
applied the Wates Corporate Governance Principles for Large demonstrate how the Jaguar Land Rover Automotive plc See pages 23 to 24
Private Companies (‘Wates Principles’) (published by the Board makes decisions for the long term success of the e) The desirability of the The Board is supportive of diversity in the workplace. Diversity management continues to form a core part of
Financial Reporting Council (‘FRC’) in December 2018 and are company and its stakeholders (see Principle 6 - Stakeholders, company maintaining a the Group’s business strategy. As part of our pledge to work even more closely with disabled people we have
reputation for high standards of joined The Valuable 500, a global movement dedicated to ensuring disability inclusion in business. The Valuable
available on the FRC website). on page 34), but also having regard for how the Board ensures 500 aims to unlock the true potential of people living with disabilities across the world. The Board has also
business conduct
the Group complies with the requirements of Section 172 (1) approved the Group’s policies on anti-slavery and human trafficking and anti-bribery and corruption which can
all be found on the Group’s website.
The new corporate governance reporting requirements under (a) to (f) of the Companies Act 2016. Our reporting against the
the Regulations apply to company reporting for financial Wates Principles has been included below. f) The need to act fairly as The Group is owned by Tata Motors Limited (“TML”) and collectively are committed to continuing to build future
between members of the growth through new models through a current difficult economic and social environment.
years beginning on or after 1 January 2019. The Group has company
applied the Wates principles as an appropriate framework Throughout 2020, the Board will continue to review and
when making a disclosure regarding corporate governance challenge how the Group can improve engagement with its
arrangements. employees and stakeholders. WATES PRINCIPLE 1 – PURPOSE AND LEADERSHIP sector. There are strategies in place which encourage diversity
throughout the workplace with opportunities for employees
The Group remains committed to ensuring effective The details on how Section 172 of the Companies Act 2006 The board of directors of Jaguar Land Rover Automotive plc to progress to senior levels.
governance is in place to deliver its core values, as this is the has been addressed is summarised as follows: rigorously challenges strategy, performance, responsibility
foundation on which it manages and controls its business and and accountability so that every decision made is of the WATES PRINCIPLE 2 - BOARD COMPOSITION
provides the platform for sustainable profitability. highest quality. The Jaguar Land Rover Automotive plc Board
actively ensures through committee meetings and careful We continuously evaluate the balance of skills, experience,
SECTION 172 DECISIONS consideration of all economic, geopolitical and environmental knowledge and independence of the Group’s directors. The
factors that the appropriate strategy and decisions are made. Board comprises a separate Chairman and Chief Executive
a) The likely consequences of The Board annually approves the five-year business plan and monitors its implementation throughout the year.
any decision in the long term Officer to ensure that the balance of responsibilities,
External factors are also considered such as economic, political and ongoing challenges within the market as This Corporate Governance Report includes further accountabilities and decision making across the Group are
a part of the five-year business plan to ensure both financial and operating strategy is set at sustaining levels
and achieving the long term success of the Group. information about the Jaguar Land Rover Automotive plc effectively maintained. The size and composition of the Board
Board, Board of Management, areas of focus for the Jaguar is considered to be appropriate with all members contributing
To further enhance and support the long term strategy, the Group entered into a number of debt funding
arrangements during the financial year. Land Rover Automotive plc Board, and the structure and role to a wide variety of experience.
of its committees. The Jaguar Land Rover Automotive plc
See page 30
Board continues to work on creating a more diverse board of A biography for each Board Director can be found on pages
b) The interests of the The directors understand the importance of the Group’s employees to the long term success of the business. directors and recognises this as a challenge in the automotive 27 to 28.
company’s employees The Group regularly communicates to its employees through presentations, internal group-wide emails and
newsletters.
A pulse survey undertaken annually allows employees to provide feedback to further support the long term
plans of the Group.
Learning and development continues to be an important area of support to employees through both training
days and e-learning modules. Internal networks to support wellbeing have been created to provide and create
communities to discuss and share support on mental health, general wellbeing and advice on the recent
COVID-19 outbreak.
We proudly support the growing number of active diversity and inclusion employee-led networks such as JLR
Pride, BAME, Gender Equality, Disability and a number of religious groups.
See page 30
c) The need to foster the com- The directors understand the importance of the Group’s supply chain in delivering the long term plans of the
pany’s business relationships Group. The Global Sourcing Process (GSP) is used to identify partners with the right capability to support
with suppliers, customers and the company on new programmes. Advanced Product Quality Planning (APQP) practices are deployed with
others Suppliers to support the development of new products, and techniques and processes including a Supplier
Risk Management (SRM) approach is used to assess their financial stability and ability to provide continuous
supply. This has been put to the test as a result of the COVID-19 pandemic. Our suppliers of production and
non-production goods and services play an integral role in our business and help us to operate globally. The
Group has key objectives and principles which are set out clearly in the Global Supplier Management policy. In
addition to ensuring ethical behaviour, sustainability and health and safety is considered critical to the success
of our business relationships.
The directors monitor the Group’s engagement with their customers through the use of various Customer
Experience Insight tools which helps collate feedback from time of vehicle purchase onwards. This process is
run internally and enables both the Group and Retailers globally to help improve customer engagement. Other
regular customer feedback mechanisms exist through a variety of syndicated surveys to provide and offer
external and independent feedback.
The directors actively seek information on the interaction with stakeholders and employees to ensure that
they have sufficient information to reach appropriate conclusions about the risks faced by the Group and any
appropriate action to be undertaken..

LEADERSHIP
JAGUAR LAND ROVER AUTOMOTIVE PLC BOARD

NATARAJAN PROF SIR RALF D SPETH P. B. BALAJI NASSER ANDREW M. ROBB HANNE SORENSEN
CHANDRASEKARAN KBE FRENG FRS NON-EXECUTIVE MUKHTAR MUNJEE NON-EXECUTIVE NON-EXECUTIVE
NON-EXECUTIVE CHIEF EXECUTIVE DIRECTOR NON-EXECUTIVE INDEPENDENT DIRECTOR
DIRECTOR AND OFFICER INDEPENDENT DIRECTOR
CHAIRMAN DIRECTOR
Appointed Appointed Appointed Appointed Appointed Appointed
February 2017 February 2010 December 2017 February 2012 April 2009 August 2018
Jaguar Land Rover roles and committees Jaguar Land Rover roles and Jaguar Land Rover roles Jaguar Land Rover roles and committees Jaguar Land Rover roles and committees Jaguar Land Rover roles and
• Chairman committees and committees • Non-executive director • Non-executive director committees
• Non-executive director • Chief Executive Officer • Non-executive director • Audit Committee member • Chairman of the Audit Committee • Non-executive director
• Nominations and Remuneration • Board of Management • Audit Committee member • Chairman of the Nominations and • Audit Committee member
Committee member Experience Remuneration Committee
Experience Experience Mr Munjee retired from the Board of Tata Experience
Experience In early 2010, Prof Sir Ralf D Speth Mr. Balaji is the Group Chief Financial Motors and Tata Chemicals after a decade and Experience Ms. Sorensen was appointed as a
N. Chandrasekaran is Chairman of the Board at Tata Sons, the became Chief Executive Officer of Officer of Tata Motors Group and continues to Chair Tata Motor Finance. He is Mr. Robb was a director of Tata Steel Limited non-executive director of Jaguar
holding company and promoter of all Tata Group companies. Jaguar Land Rover and a member of is on the Boards of Tata Motors on the Board of ABB India, HDFC Ltd, Cummins from 2010 until 2017 and Chairman of Tata Land Rover in August 2018. Ms.
He joined the Board of Tata Sons in October 2016 and was the Tata Motors board later that year. Finance group of companies and Tata India and Ambuja Cements (a Holcim Lafarge Steel Europe from 2009 until he retired from Sorensen holds an MSc in Economics
appointed Chairman in January 2017. He also chairs the In 2016, he was appointed to the Technologies Ltd. Prior to this, he was Company). He is Chairman of the DCB Bank that Board in August 2019. He was a director of and Management from the University
Boards of several group companies, including Tata Steel, Tata Supervisory Board of Tata Sons Ltd. the Vice President Finance for South in India as well as the Aga Khan Foundation Pilkington Group plc until 2003, having held the of Aarhus and is on the boards and
Motors, Tata Power, and Tata Consultancy Services – of which Prior to joining Jaguar Land Rover, Sir Asia and Chief Financial Officer of (India). He has been the President of the position of Finance Director from 1989 to 2001. committees of various international
he was Chief Executive from 2009-17. He is the Chairman Ralf was a director at The Linde Group, Hindustan Unilever Limited. Bombay Chamber of Commerce and Industry Prior to this, from 1983 he was Finance Director companies, including Tata
of IIM Lucknow and President at IISc Bengaluru. He is also the international industrial gases and and helped to create and was CEO of the of the Peninsular and Oriental Steam Navigation Consultancy Services, Tata Motors
the member of International Advisory Council of Bocconi and engineering company. Infrastructure Development Finance Company Company. Mr. Robb has served on a number of and Sulzer.
Singapore’s EDB, and the Co-Chair of India-US CEO Forum. India for seven years. plc boards as a non-executive director.
BOARD OF MANAGEMENT
The Leadership team drives the Group’s strategy and goals and makes decisions concerning operational planning issues.
PROF SIR RALF D SPETH FELIX BRÄUTIGAM IAN HARNETT HANNO KIRNER ADRIAN MARDELL GRANT McPHERSON QING PAN NICK ROGERS
KBE FRENG FRS CHIEF COMMERCIAL EXECUTIVE DIRECTOR, HR EXECUTIVE DIRECTOR, CHIEF FINANCIAL EXECUTIVE DIRECTOR, EXECUTIVE DIRECTOR, EXECUTIVE DIRECTOR,
CHIEF EXECUTIVE OFFICER AND GLOBAL PURCHASING CORPORATE AND STRATEGY OFFICER MANUFACTURING JAGUAR LAND ROVER CHINA PRODUCT ENGINEERING
OFFICER
Responsibilities Responsibilities Responsibilities Responsibilities Responsibilities Responsibilities Responsibilities
Mr. Bräutigam is responsible for In April 2015 Mr. Harnett was Mr. Kirner oversees the Mr. Mardell leads the financial Mr. McPherson is responsible Mr. Pan is responsible for Mr. Rogers leads Jaguar Land
all global sales and marketing appointed as Executive Director development of corporate and management of the business for the global manufacturing maximising the total value of Rover’s global engineering and
activity for the Jaguar and Land of Human Resources and Global product strategy, business to deliver shareholder value operations side of the the Jaguar Land Rover business research operations at board
Rover brands. His role includes Purchasing, also assuming transformation, global financial and growth ambitions. His business, ensuring optimum in China. He is accountable for level, encouraging technical
brand positioning, current and responsibility for all Jaguar Land Rover services, IT, royal and diplomatic responsibilities include efficiency to deliver world profit performance of Jaguar curiosity and disruptive innovation
future product planning, cus- Property matters globally. affairs and the Special corporate finance, treasury, class safety, quality, cost and Land Rover combined import across his 10,000-strong team.
tomer relationship management, Operations division. financial reporting, accounting, environmental standards. and local business in China and He drives initial research concepts
marketing communications, brand Note: Mr. Harnett has announced his tax, internal control and leading the company’s vision through to engineering across
experience strategies, global intention to retire, effective from 1st business support. and strategic development in all commodities, including Body;
and regional sales management, July 2020 he will be succeeded by the region. Chassis; Powertrain and Electrical,
customer service and supporting Dave Williams as Executive Director, leading product delivery and
future growth. Human Resources and Dave Owen as launch of new technology.
Executive Director, Global Purchasing.

LEADERSHIP
T H E K E Y M AT T E R S C O N S I D E R E D BY T H E J A G U A R L A N D R O V E R P L C
WATES PRINCIPLE 3 – DIRECTOR RESPONSIBILITIES Committees. Good governance is achieved through effective
BOARD DURING FISCAL 2019/20 INCLUDED:
committees tackling core areas of focus on a regular basis.
Effective risk management is central to achieving the Group’s TOPIC/ACTIVITY ACTIONS PROGRESS
strategic objectives and is a core responsibility of the Jaguar In this section, you will find information about the induction
Land Rover Automotive plc Board and its committees. In this and development of directors across the Group, as well as the STRATEGY
section, you will find information about the responsibilities key considerations when measuring the effectiveness of the Review of the business Analysed the automotive industry trends and retail outlook New Range Rover Evoque and New Land Rover
and focus of the Jaguar Land Rover Automotive plc Board Jaguar Land Rover Automotive plc Board and its committees. and operating model and assessed the potential impact on the Group Defender models introduced to the market with
strong possitive response
and the Audit, Nominations and Remuneration and Disclosure Reviewed the Group’s performance against its
competitors Growing focus on electric vehicles, the Jaguar I-PACE
has to date won over 80 awards globally
Building on the platform of new model success;
GOVERNANCE STRUCTURE AND FLOW OF INFORMATION significant product launches are being invested into
from FY20 onwards
Monitoring of Supported continued investment to promote sustainable Issuance of €1b bonds
opportunities for business growth over the long term
acquisitions and new Issuance of £625m UKEF funding facility
THE JAGUAR LAND ROVER Utilise cash to implement ongoing programmes to support
AUTOMOTIVE PLC BOARD revenue streams Issuance of £100m fleet buy-back funding
AUDIT NOMINATIONS AND business growth
COMMITTEE REMUNERATION COMMITTEE Considered and approved the Group’s debt funding Two $500m bonds matured and repaid during the year
The Jaguar Land Rover Automotive plc Board
provides supervision and guidance to its arrangements
Reviews the integrity of the financial Determines the overall remuneration £52.1 million of the loan facility backed by a UKEF
management, particularly with respect to corporate guarantee amortised in March 2020
statements, relationship with the policy and strategy to ensure
governance, business strategies and growth plans.
external auditors and effectiveness of transparency and alignment with the
It also considers the identification of risks and their Discussion of the Group’s Reviewed a number of opportunities in the Fiscal year Project Charge achieved £2.9b of improvements
internal financial controls. Group’s short and long term strategic
mitigation strategies, entry into new businesses,
goals. capital structure and
product launches, demand fulfilment and capital financial strategy Reviewed and approved, where appropriate, the business Further improvements planned with Charge+ and
For more information see page 31 cases for internally developed future business Accelerate
expenditure requirements, as well as the review of
For more information see page 33
our business plans and targets.
RISK MANAGEMENT AND INTERNAL CONTROL
For more information see page 31 Review the Group’s Clearly articulated the Group’s approach to risk Agreed Group-level risks and a robust set of mitigating
principal risks and the activities, which are regularly monitored
effectiveness of the Reviewed and updated approach to identify and manage
systems of internal principal risks Further developed the Group’s approach to risk
control and risk Continuing assessment of significant and emerging risks, Considered movements in key risks resulting from
BOARD OF MANAGEMENT management including geopolitical uncertainty and the impact of Brexit changes to likelihood or business impact
The work of the Board of Management complements, enhances and supports the work of the Jaguar Land Rover Automotive plc Board, with the Board
of Management operating under the direction and authority of the Chief Executive Officer. The Jaguar Land Rover Automotive plc Board delegates to the
LEADERSHIP AND PEOPLE
Board of Management the execution of the Group’s strategy and the day-to-day management and operation of the Group’s business. Review composition of Discussed the composition of the JLR plc Board and its The Board of Management and Senior Director’s Forum
the JLR plc Board and its committees, including succession planning is in place and continually monitored
Examples of actions taken by the Board of Management are: committees
Reviewing and making decisions concerning operational planning associated with the latest five-year business plan of the Group; Review the development Ongoing commitment to maintaining a balance of Due to the strength of the succession planning
of people and talent appropriate skills and experience among the Board of built into the business, recent changes surrounding
Evaluating the performance of the Group against budget and forecast; and in the Group, including Management and associated committees the Chief Executive Officer, Chief Financial Officer
succession planning for and other Board positions has been appropriately
Reviewing and approving potential investments. senior roles addressed
The Board of Management is also responsible for overseeing the implementation of appropriate risk assessment processes and controls to identify, manage Discuss the results of the Conducted a thorough review of Pulse surveys to identify Continued focus on engagement and development of
and mitigate the principal risks to the Group. This includes the review, approval and communication of the risk management policy and framework. employee engagement areas for improvement employees through offering a wide range of training
survey and devise courses
strategic actions arising Encouraged interaction between employees across the
from it Group
GOVERNANCE, STAKEHOLDERS AND SHAREHOLDERS

OTHER EXAMPLES OF Review the Group’s Considered sustainability, including the Group’s impact on Reviewed developments in corporate governance and
MANAGEMENT COMMITTEES purpose, goal, vision and the community and the environment received key legal and regulatory updates
values
Risk Management Committee Monitored and addressed regular Health and Safety
updates
DISCLOSURE COMMITTEE Product Committee
Encourage strong Actively supported engagement opportunities Ongoing discussions at all levels of the business with
Supports the Jaguar Land Rover Automotive plc Board and Audit Chairman’s Design Board engagement with shareholders
investors and Regularly reviewed and acted upon feedback from key
Committee in reviewing and approving the final form of quarterly and Health and Safety Committee stakeholders Engagement with other stakeholders based on
annual announcements and statements relating to the performance of stakeholders
Security Committee
feedback
the Group.
Unusual Events Committee FINANCIAL PERFORMANCE
For more information see page 32
Financial Risk and Assurance Committee Assessment of the Group’s Evaluated the Group’s performance against budget and Reviewed and approved the latest five-year business
financial performance forecast plan for the Group
Financial Risk Committee
Reviewed the quarterly and annual results and associated Approved the Annual Report
presentations to investors

EFFECTIVENESS A C C O U N TA B I L I T Y
THE JAGUAR LAND ROVER AUTOMOTIVE These topics range from those with particular relevance for five times. They reviewed the draft financial statements and effectiveness, the Group has a non-audit services policy
PLC BOARD our business, such as global automotive demand, to considered a number of supporting papers. This included which sets out the circumstances and financial limits within
more general matters such as developments in corporate reviewing information presented by management on which the external auditor may be permitted to provide
The Jaguar Land Rover Automotive plc Board will continue governance. We recognise that our directors have a range significant accounting judgements to ensure all issues raised certain non-audit services. This policy sets a presumption
to consider the core areas described previously, but in of experience, and so we encourage them to attend external have been properly dealt with; reviewing presentation and that KPMG should only be engaged for non-audit services
particular will focus on: seminars and briefings that will assist them individually. disclosure to ensure adequacy, clarity and completeness; where there is an obvious and compelling reason to do so
reviewing the documentation prepared to support the (for example, their skills and experience or ability to provide
• Continued development of our product pipeline through EVALUATION going concern statement given on page 37; and reviewing the services) and provided such work does not impair their
upcoming product launches, thereby seeking to external audit reports. The key matters considered in the independence or objectivity and has no impact on the audited
capitalise on segment growth; The Jaguar Land Rover Automotive plc Board continuously year were: review of the Group’s impairment assessment financial statements. It prohibits KPMG from providing certain
• Growing innovation in autonomy, connectivity, assesses its effectiveness in the following areas: for Fiscal 2019/20; IFRS 16 Leases during its first year of services, including legal, valuation, actuarial and internal
electrification and shared mobility through powertrain implementation; the issuance of debt; impact of COVID-19; audit. The Audit Committee approves all non-audit services
rightsizing, lightweighting and aerodynamics; • The flow and quality of information to and from the and going concern. Monitoring of GDPR and information and before they are performed.
• Considering and evaluating the the evolving economic, Jaguar Land Rover Automotive plc Board; cyber security continues to be focussed on and enhanced.
political and market conditions relative to Brexit; • The decision-making process and culture; and Non-audit fees paid to KPMG in the year totalled £1.1 million
• Developing our people and the workforce of tomorrow; • The outcome of the decisions made by the Jaguar Land Internal controls (2019: £0.9 million), representing 18% of the fees paid for
• Ongoing review and monitoring of external risk factors, Rover Automotive plc Board. audit and audit-related assurance services.
considering their impact on the future of the company They reviewed the effectiveness of financial reporting,
in light of upcoming changes in both the political and The Jaguar Land Rover Automotive plc Board and Audit internal control over financial reporting and risk management Corporate Audit
economic environment. Committee also provided direct feedback to management procedures within the Group, with particular regard given to
committees during the year. compliance with the provisions of section 404 of the Sarbanes- During the year, they regularly reviewed the adequacy of
HOW WE DIVIDE UP OUR RESPONSBILITIES Oxley Act and other relevant regulations. The reviews also the Corporate Audit function, the Corporate Audit charter,
COMMITEES SUPPORTING ACCOUNTABILITY considered any potential material weaknesses or significant staffing and seniority of the official heading the function,
Chairman of the Jaguar Land Rover Automotive plc Board deficiencies in the design or operation of the Group’s internal reporting structure, budget, coverage and the frequency
AUDIT COMMITTEE control over financial reporting, which are reasonably likely of corporate audits, the structure of Corporate Audit and
Responsible for leading the Jaguar Land Rover Automotive to adversely affect the Group’s ability to record, process and approval of the audit plan.
plc Board, its effectiveness and governance. Also sets the Composition of the Audit Committee report financial data, including that of systems controls. We
agenda to take full account of the issues and concerns of Andrew Robb, Chairman receive reports from the external auditor, Business Assurance They also met with Corporate Audit and the external auditor
the directors and ensures effective links between external Nasser Munjee and Corporate Audit with respect to these matters. on a one to-one basis twice during the year. This forms an
stakeholders, the Board and management. P. B. Balaji important part of their consideration and control, ensuring
External Audit that they have an open and direct forum with the Audit
Non-executive directors Role of the Audit Committee Committee.
They reviewed the significant audit issues with the external
Constructively challenge the Chief Executive Officer and • Monitors the integrity of the financial statements, auditor and how they have been addressed in the financial DISCLOSURE COMMITTEE
monitor the delivery of the Group strategy within the risk including the review of significant financial reporting statements. They also evaluated the external auditor by
and controls environment set by the Jaguar Land Rover issues and judgements alongside the findings of the reviewing the firm’s independence, its internal quality control Composition of the Disclosure Committee:
Automotive plc Board. external auditor; procedures and any material issues raised by the most recent
• Oversees the relationship with the external auditor, quality control or peer review of the audit firms. This included Chief Financial Officer and his direct reports
Chief Executive Officer external audit process, nature and scope of the external the findings of any enquiry or investigation carried out by
audit and the appointment, effectiveness, independence government or professional bodies with respect to one or Matters considered during the year
Responsible for the day-to-day leadership, management and and fees of the external auditor; more independent audits performed by the external auditor
control of the Group, recommending the Group strategy to the • Monitors and reviews the effectiveness of Corporate within the last five years. • Reviewed and updated the terms of reference of the
Jaguar Land Rover Automotive plc Board, and implementing Audit, ensuring coordination with the activities of the Disclosure Committee
the Group strategy and decisions of the Jaguar Land Rover external auditor; and KPMG, the external auditors, have completed their third year • Reviewed the audit and control findings from the
Automotive plc Board. • Reviews the effectiveness of the Group’s systems for in post. Section 139(2) of the Indian Companies Act, 2013, external auditor
internal financial control, financial reporting and risk mandates that all listed companies rotate their auditors • Reviewed areas of key management judgement and
INDUCTION, DEVELOPMENT AND SUPPORT management. once the auditor has served as an auditor for a period of significant transactions, including their presentation
10 or more consecutive years. Under these regulations, the and disclosure in both the quarterly and annual financial
All new directors receive a full, formal and tailored induction Main activities of the Audit Committee during the year Group through the guidance of parent company Tata Motors statements
upon joining the Jaguar Land Rover Automotive plc Board. Limited will be required to retender the audit by no later • Reviewed new disclosures in both the quarterly and
We also plan the Jaguar Land Rover Automotive plc Board Financial reporting than 2027 and the Committee will keep the external auditor annual financial statements for appropriateness
calendar so that directors are able to visit the increasing tender under review and act in accordance with any changes • Considered the impact of new accounting standards on
number of Jaguar Land Rover geographic locations and are During the year, the Audit Committee met with the external in regulations and best practice relating to the tenure of the the Group
briefed on a wide range of topics throughout the year. auditor and management as part of the Fiscal 2019/20 external auditor.
annual and quarterly reporting approval process a total of To help safeguard KPMG’s objectivity, independence and

A C C O U N TA B I L I T Y
WATES PRINCIPLE 4 - OPPORTUNITY AND RISK appointments are made in a fair, equal and balanced way. EXECUTIVE REMUNERATION PBT EBIT growth
10% Cash flow Cash flow
Costs
30% 25% Volume growth
In addition to the matters referred to throughout this report on Remuneration policy Quality Sustainability
Volume
risk management, please also refer to page 20 which includes There is clear linkage between Jaguar Land
BONUS LT I P
30%
a list of all emerging and principal risks including mitigations The remuneration policy is designed to attract, retain and Rover business strategy and the performance PERFORMANCE PERFORMANCE
25% MEASURES MEASURES
relevant to the Group. motivate executives of the highest quality, encouraging them related elements of remuneration.
to deliver exceptional business performance aligned to Jaguar
15% 20% 20% 25%
See pages 21 to 22 for assessment and categorisation of Land Rover’s strategy and the objective of delivering long-
principal risks and actions to mitigate. term sustainable growth in value. Its structure and individual
remuneration elements align with the design of the Company’s
WATES PRINCIPLE 5 - REMUNERATION remuneration policy for the wider organisation. Any decisions The overall objective is to deliver executive 32% Base salary
Benefits
36% 18%
Base salary
Benefits
the Nominations and Remuneration committee makes in pay in line with a market median range Annual bonus Annual bonus
LTIP LTIP
In accordance with Wates Principle 5, the Nominations and relation to Executive remuneration will be made with clear for target performance, with enhanced TA R G E T MAXIMUM 6%
Remuneration Committee of Jaguar Land Rover Automotive understanding of the developments to pay and conditions for reward opportunity to reflect exceptional EXECUTIVE
R E M U N E R AT I O N 32%
EXECUTIVE
R E M U N E R AT I O N
plc Board ensures that appropriate senior management is the wider workforce. business performance. Overall remuneration
recruited to deliver on the Group’s objectives. The Nominations is balanced, with the majority linked to
24% 12% 40%
and Remuneration Committee has clearly defined Terms Executive remuneration consists of: business performance.
of Reference and is responsible for remuneration strategy,
recruitment and long term incentive plans for senior executives. Fixed elements:
WATES PRINCIPLE 6 – STAKEHOLDER customers and suppliers are set out on page 25.
NOMINATIONS AND REMUNERATION COMMITTEE • Salary. Designed to recruit and retain individuals with the RELATIONSHIPS AND ENGAGEMENT
necessary knowledge, skills and experience to deliver the Maintaining strong relationships with shareholder and bond
Composition of the Nominations and Remuneration Group’s strategic objectives. Salary is reviewed annually The Jaguar Land Rover Automotive plc Board continues to investors is crucial to achieving the Group’s aims.
Committee: and benchmarked against comparable roles in appropriate promote accountability and transparency with all stakeholders
comparator groups (such as other UK engineering companies and shareholders and effectively communicates the Group’s In this section you will find information about how we engage
Andrew Robb, Chairman and European automotive companies). strategic direction. Interaction and communication with with our shareholder and bond investors.
Natarajan Chandrasekaran
• Retirement benefits. The Group has a number of defined
In addition to the Committee members, the Chief Executive
Officer is invited to attend meetings, except where there is
benefit pension schemes that are closed to new employees.
Executives who are members of these schemes will continue to
I N V E S T O R R E L AT I O N S E N G A G E M E N T
a conflict of interest. The Nominations and Remuneration accrue benefits, but most executives now either have defined
Committee is supported by the Executive Director, Human contribution provisions or elect to receive a cash allowance in
Resources & Global Purchasing and the HR Director, Global lieu of retirement benefits. The cash allowance is at the same SOLE SHAREHOLDER (www.jaguarlandrover.com) supported by live broadcasts via
Reward & Mobility. level as the equivalent defined contribution provision. teleconference calls. The investor relations team also attends
Jaguar Land Rover Automotive plc (and its subsidiaries) various credit conferences held throughout the year and our
• Other benefits. Executives are eligible to participate in the is a wholly owned subsidiary of Tata Motors Limited (held annual capital markets day where investors, banks and other
Role of the Nominations and Remuneration Committee Group’s management car programme, medical arrangements, through TML Holdings Pte. Ltd. (Singapore)) and the majority credit providers have the opportunity to meet with Jaguar
and life insurance and disability plans. of the Jaguar Land Rover Automotive plc Board also reside as Land Rover senior management in person to discuss recent
During the year, the Board reviewed the Terms of Reference of directors on the board of Tata Motors Limited. Although we results, the Company’s strategy and aspirations.
the Remuneration Committee, with a view to further enhance operate on a stand-alone, arm’s length basis, we maintain
the corporate governance in place. It was decided to expand Performance-related elements: an open and collaborative strategic relationship with Tata CREDIT RATING AGENCIES
the committee’s responsibilities to cover both Nominations Motors Limited and cooperate in numerous areas, including
and Remuneration and to strengthen the committee with • Annual bonus. The Global Bonus Plan is designed to reward engineering, research and development, and sourcing and As at 31 March 2020, Jaguar Land Rover Automotive plc
the appointment of a further Non-Executive Director, Hanne achievement of short-term financial and strategic measures procurement. had a credit rating of B+ (negative outlook) from S&P, B1
Sorenson with effect from June 1st 2020. to support the Group’s strategy. Performance is measured (rating under review for downgrade) from Moody’s and BB-
against quantifiable one-year financial and operational targets. BOND INVESTORS, LOAN AND OTHER CREDIT (negative outlook) from Fitch. Subsequently both S&P and
The new terms of reference which came into effect in PROVIDERS Fitch downgraded JLR’s credit rating to B (Negative Outlook)
December 2019 cover the structure, appointments, removals, • Long-term incentive. The LTIP is designed to reward and in April and May respectively while Moody’s confirmed its B1
succession, performance and compensation of the Jaguar encourage alignment with the Group’s long-term sustainable As at 31 March 2020, we had approximately £3.9 billion of (Negative Outlook) in June. We maintain regular and open
Land Rover Automotive plc Board and the Jaguar Land Rover growth strategy. Performance is measured over a three year listed unsecured bonds outstanding (31 March 2019: £3.6 dialogue with the rating agencies, including an in-depth annual
Board of Management. period against a balanced scorecard of quantifiable financial billion) and £1.5 billion of loans (31 March 2019: £869 million). review of our long-term business plans, so that an independent
and operational targets aligned to long-term growth. We maintain regular dialogue with our bond investors and assessment of our credit profile can be represented in the
The Committee’s involvement in all aspects of nominations relationship banks (some of whom provide support for loans market for the benefit of current and prospective investors as
and remuneration ensures that all decisions in terms of Board and other credit facilities) through the quarterly publication well as supporting any future debt issuance.
of operational and financial results on the Group’s website

J A G U A R L A N D R O V E R ’ S A P P R O A C H T O TA X
INTRODUCTION we adhere to the Jaguar Land Rover Code of Conduct and 5. Tax resource 6. Relationships with governments and authorities
the Tata Code of Conduct, which set out the high ethical
Jaguar Land Rover’s business has grown significantly in recent standards of business behaviour expected from all companies Responsibility for the day-to-day management of Jaguar Land In our dealings with tax authorities globally, including HMRC
years and continues to do so. Jaguar Land Rover’s operations and employees within our Group. Rover’s tax affairs rests with our central Tax function, led by in the UK, we always look to maintain good, open, honest and
are large and complex and, as a result, the Group operates the Jaguar Land Rover Tax Director. The function comprises professional working relationships, to engage proactively in
through multiple companies, with activities, employees and 2. Business alignment an appropriate blend of tax professionals with the necessary relation to tax matters and to resolve any areas of dispute or
assets located in numerous countries around the world. This, qualifications, training, skills and experience required to differences of opinion as quickly as possible in order to reduce
in turn, naturally drives an inherent level of complexity in the Jaguar Land Rover always aligns its tax affairs with the genuine effectively undertake their roles. The Tax function also advises uncertainty and manage risk.
Group’s tax affairs. In relation to tax matters, just as for any business activities being undertaken by the organisation. We the Jaguar Land Rover plc Board in relation to setting Group tax
other area of the Group’s business, Jaguar Land Rover always do not engage in any form of tax avoidance or artificial tax strategy and policy. We also actively engage in dialogue with governments, either
strives to be a good, responsible corporate citizen, and Jaguar structuring and we do not operate or use any offshore tax directly or through appropriate representative bodies, in relation
Land Rover is committed to complying with all applicable tax havens. All Jaguar Land Rover Group subsidiaries are located In addition to the central Tax function, the business also has to matters of tax policy that affect our business.
laws, both in letter and in spirit. We aim to be fair, honest, in countries where the business has significant physical and dedicated tax professionals embedded within the finance teams
transparent and ethical in our conduct and for everything we economic operations (i.e. employees, offices and revenue- in key non-UK subsidiaries.
do to stand the test of public scrutiny. generating activity).
Where appropriate, we look to implement technology-based
JAGUAR LAND ROVER’S KEY TAX PRINCIPLES 3. Enhancing shareholder value solutions to streamline processes, drive efficiency and manage
risk.
In 2013, the Jaguar Land Rover Automotive plc Board formally As a commercial organisation, Jaguar Land Rover will always
adopted six key principles in relation to Jaguar Land Rover’s seek to effectively manage its tax liabilities, just as for any
approach to taxation matters and the conduct of our tax other business cost. In so doing, we always adhere to relevant
affairs. These principles continue to apply today; they apply tax laws and, in relation to transactions within the Group, we A P P R O VA L O F S T R AT E G I C R E P O R T
equally to all companies within the Group, across all areas of always seek to ensure that these are conducted on an arm’s-
our business activity and in all our territories of operation. length basis in accordance with Organisation for Economic
Co-operation and Development (OECD) principles.
JAGUAR LAND ROVER WILL CONDUCT ITS The Strategic Report on pages 4 to 36 was approved by the Jaguar Land Rover plc Board and authorised for issue on 2 July 2020 and
TAX AFFAIRS IN A WAY THAT: Where governments or fiscal authorities have introduced signed on its behalf by:
particular tax reliefs, credits, incentives or exemptions to
1. Is compliant with all legal and regulatory obligations and encourage specific types of economic activity (for example,
which adheres to the principles set out in the Jaguar investment in research and development), we will always seek
Land Rover Code of Conduct and Tata Code of Conduct; to ensure that Jaguar Land Rover claims the appropriate level PROF SIR RALF D SPETH KBE FRENG FRS
2. Is aligned with the Group’s overall business strategy and of benefit for which it qualifies. Chief Executive Officer
growth objectives; Jaguar Land Rover Automotive plc
3. Proactively seeks to enhance shareholder value and 4. Governance and risk management 2 July 2020
optimise tax cost on a sustainable basis;
4. Is governed, managed and controlled within an appropriate Tax risks arising within the Group are identified, assessed and
risk management framework; managed by the central Tax function on an ongoing basis. A
5. Is appropriately resourced and seeks to maximise detailed tax update is taken to the Jaguar Land Rover plc
operating efficiencies through the suitable use of Board on an annual basis and tax risks are reported quarterly
automation and technology-based solutions; and to the Financial Risk and Assurance Committee, chaired by the
6. Maintains good, open, honest and professional working Chief Financial Officer. The Jaguar Land Rover Tax Director
relationships with tax authorities globally and seeks to also meets with the Chief Financial Officer on a biweekly basis
take a leading role in relation to matters of governmental to provide updates on all tax matters affecting the Group.
tax policy relevant to Jaguar Land Rover.
Jaguar Land Rover actively seeks to minimise risk in relation
Each principle is commented on further below: to tax matters. We do this through a variety of processes
and controls including, for example, tax risk assessments and
1. Tax compliance health-check exercises for subsidiaries, online monitoring
of compliance processes and an active Advance Pricing
This is considered the most fundamental and important of our Agreement programme.
six principles. Jaguar Land Rover will always seek to comply
with all applicable tax laws, both in terms of the letter and No additional current tax risks were identified as a result of
the spirit of the law, and to satisfy its global tax compliance COVID-19, with the Group’s compliance activity continuing to
obligations in a timely and accurate manner. In addition, be operated in accordance with the applicable legislation.

DIRECTORS’ REPORT
The directors present their report and the audited consolidated financial Apart from determining that an individual has the ability to carry out a expected of them. The Code of Conduct can be found at • State whether they have been prepared in accordance with IFRSs as
statements of the Group for the year ended 31 March 2020. Jaguar Land particular role, the Group does not discriminate in any way. It endeavours www.jaguarlandrover.com adopted by the EU;
Rover Automotive plc is a public limited company incorporated under the to retain employees if they become disabled, making reasonable • Assess the Group and parent company’s ability to continue as a going
laws of England and Wales. The business address of the directors and adjustments to their role and, if necessary, looking for redeployment Employees, contract staff, third parties with whom the Group has a concern, disclosing, as applicable, matters related to going concern; and
senior management of the Group is Abbey Road, Whitley, Coventry, CV3 opportunities within the Group. The Group also ensures that training, business relationship (such as retailers, suppliers and other third parties), • Use the going concern basis of accounting unless they either intend
4LF, England, United Kingdom. career development and promotion opportunities are available to all and any member of the public may raise ethical and compliance concerns to liquidate the Group or the parent company or to cease operations, or
employees irrespective of gender, race, age or disability. to the Group’s global helpline or via group.compliance@jaguarlandrover. have no realistic alternative but to do so.
Future developments com
Future developments impacting the Group are disclosed in the Challenges Employee engagement The directors are responsible for keeping adequate accounting
and Opportunities section. The directors understand the importance of the Group’s employees to the Slavery and human trafficking statement records that are sufficient to show and explain the parent company’s
long term success of the business. During the year, Pulse surveys capture Pursuant to section 54 of the Modern Slavery Act 2015, the Group has transactions and disclose with reasonable accuracy at any time the
Dividends and monitor employee satisfaction along with monthly communications published a slavery and human trafficking statement for the year ended financial position of the parent company and enable them to ensure that
The directors proposed no dividend for the year ended 31 March 2020. to update all employees on financial performance and business challenges 31 March 2020. The statement sets out the steps that the Group has its financial statements comply with the Companies Act 2006. They
(For the year ended 31 March 2019: £Nil. For the year ended 31 March experienced with the Group are undertaken. Learning and development taken to address the risk of slavery and human trafficking occurring are responsible for such internal control as they determine is necessary
2018, £225 million was paid in June 2018). courses and internal network groups to support various interests has within its own operations and its supply chains. This statement can be to enable the preparation of financial statements that are free from
been encouraged. See page 25 for further details. Details of how the found on the corporate website at www.jaguarlandrover.com material misstatement, whether due to fraud or error, and have general
Directors Group involves its employees are contained in Our People section of our responsibility for taking such steps as are reasonably open to them to
Biographies of the directors currently serving on the JLR plc Board are set website. The average number of people employed by the Group during Whistle-blowing policy safeguard the assets of the Group and to prevent and detect fraud and
out on page 27 to 28. the year can be found in note 7 to the financial statements. The Group’s whistle-blowing policy encourages employees to report, in other irregularities.
confidence and anonymously if preferred, concerns about suspected
Directors’ indemnities Political involvement and contributions impropriety or wrongdoing in any matters affecting the business. An Under applicable law and regulations, the directors are also responsible
The Group has made qualifying third party indemnity provisions for the There have not been any political donations in any of the periods covered independent hotline exists to facilitate this process. Any matters for preparing a Strategic Report and a Directors’ Report that complies
benefit of its directors during the year; these remain in force at the date by these financial statements. reported are thoroughly investigated and escalated to the Committee. with that law and those regulations. The directors are responsible for
of this report. the maintenance and integrity of the corporate and financial information
Engagement with customers, suppliers and others Diversity policy included on the Company’s website. Legislation in the UK governing the
Material interests in shares Engagement with customers, suppliers and others is set out on page 25 Diversity management continues to form a core part of the Group’s preparation and dissemination of financial statements may differ from
Jaguar Land Rover Automotive plc is a wholly owned subsidiary of Tata and is incorporated by reference to this report. business strategy. We rely on the diversity of our employees to form the legislation in other jurisdictions.
Motors Limited, held through TML Holdings Pte. Ltd. (Singapore). foundation of a strong and dynamic company. See pages 25 to 34 for
Going concern further details. Statement of disclosure of information to auditors
Share capital The Group’s business activities, together with the factors likely to affect In the case of each of the persons who are directors at the time when
Share capital remains unchanged. See note 29 to the consolidated its future development, performance and position, are set out in the Greenhouse gas emissions the report is approved under section 418 of the Companies Act 2006,
financial statements on page 95 for further details. Strategic report. The financial position of the Group is described on pages The Group is committed to reducing greenhouse gas emissions and the following applies: so far as the directors are aware, there is no
16 to 18. In addition, note 35 to the consolidated financial statements continues to invest heavily in this activity. See pages 23 to 24 for further relevant audit information of which the Group’s auditor is unaware; and
Corporate Governance Statement includes the Group’s objectives, policies and processes for managing details. the directors have taken necessary actions in order to make themselves
The Corporate Governance Statement is set out on pages 25 to 34 and is its exposures to interest rate risk, foreign currency risk, credit risk and aware of any relevant audit information and to establish that the Group’s
incorporated by reference into this report. liquidity risk. Details of the Group’s financial instruments and hedging Statement of directors’ responsibilities in respect of the directors’ auditor is aware of that information.
activities are also provided in note 35 to the consolidated financial report and the financial statements
Branches statements. The JLR plc Board has a reasonable expectation that the The directors are responsible for preparing the Annual Report and the Auditor
The Group has 10 branches that exist and operate outside of the UK, Group has adequate resources to continue in operational existence for Group and parent company financial statements in accordance with A resolution to reappoint KPMG LLP as auditor of the Group is to be
based in China and the United Arab Emirates. the foreseeable future. During the financial year the Group has carefully applicable law and regulations. proposed at the 2020 Tata Motors Limited Annual General Meeting.
considered the impact of COVID-19 and the impact on not just the
Research and development automotive industry but to the financial position of the Group as a result Company law requires the directors to prepare Group and parent Acknowledgement
The Group is committed to an ongoing programme of expenditure of these unprecedented changes. Further details can be found within the company financial statements for each financial year. Under that law The directors wish to convey their appreciation to all employees for their
on research and development activities as disclosed in note 11 to the Basis of Preparation on page 53. Accordingly, the financial statements the directors have elected to prepare the Group financial statements in continued commitment, effort and contribution in supporting the delivery
consolidated financial statements on page 78. set out on pages 49 to 138 have been prepared on the going concern accordance with International Financial Reporting Standards as adopted of the Group’s performance. The directors would also like to extend their
basis. by the EU (IFRSs as adopted by the EU) and applicable law, and have thanks to all other key stakeholders for their continued support of the
Financial instruments elected to prepare the parent company financial statements on the same Group and their confidence in its management.
The disclosures required in relation to the use of financial instruments Events after the balance sheet date basis. Under company law the directors must not approve the financial
by the Group and Company, together with details of the Group’s and Full details of significant events since the balance sheet date are disclosed statements unless they are satisfied that they give a true and fair view of The Directors’ Report was approved by the JLR plc Board and authorised
Company’s treasury policy and management, are set out in note 35 to in note 42 on page 124 to the consolidated financial statements. the state of affairs of the Group and parent company and of their profit or for issue on 2 July 2020 and signed on its behalf by:
the consolidated financial statements on pages 104 to 116 and in note loss for that period. In preparing each of the Group and parent company
53 on pages 133 to 137 of the parent company financial statements. Code of Conduct financial statements, the directors are required to:
Directors and employees are required to comply with the Jaguar Land
Employee information Rover Code of Conduct, which is intended to help them put the Group’s • Select suitable accounting policies and then apply them consistently; Chief Executive Officer
The average number of employees within the Group is disclosed in note 7 ethical principles into practice. The Code of Conduct clarifies the basic • Make judgements and estimates that are reasonable, relevant and Jaguar Land Rover Automotive plc
to the consolidated financial statements on page 75. principles and standards they are required to follow and the behaviour reliable; 2 July 2020

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF JAGUAR LAND ROVER AUTOMOTIVE PLC The risk Our response
Going Concern Disclosure quality: Our procedures included:

1 Our opinion is unmodified
Risk vs 2019 The financial statements explain how • Funding assessment: Evaluated the Group and parent
the Board has formed a judgement Company’s financing facilities, including the available terms
We have audited the financial statements of Jaguar Land Rover OVERVIEW
Refer to page 53 that it is appropriate to adopt the and covenants associated with these facilities.
(accounting
Automotive plc (“the Company”) for the year ended 31 March going concern basis of preparation for
policy). the Group and parent Company. • Key dependency assessment: Assessed the key
2020 which comprise the Consolidated Income Statement, Materiality: £85.9m (2019: £100m) assumptions underpinning the forecast cash flows which
Consolidated Statement of Comprehensive Income and Group financial That judgement is based on an the directors have used to support the going concern
statements as a 0.4% of Group Revenue basis of preparation and to assess whether the Group
Expense, Consolidated Balance Sheet, Consolidated Statement evaluation of the inherent risks to the
whole (2019: 0.4% of Group Revenue) Group’s and the parent Company’s can meet its financial commitments as they fall due.
of Changes in Equity, Consolidated Cash Flow Statement, the
business model, in particular risks
parent Company Balance Sheet, the parent Company Statement associated with the global COVID-19 The cash flow forecasts incorporate a number of key
Coverage 88% (2019:85%) of assumptions, including: the impact of COVID-19 on vehicle
of Changes in Equity, the parent Company Cash Flow Statement, Group revenue pandemic, the impact of Brexit and
the impact of political uncertainty, sales as a result of the temporary shutdowns of the
and the related notes, including the parent Company and Group automotive industry worldwide and the anticipated speed
Key audit matters vs 2019 and how those risks might affect the
accounting policies in note 2. Group and parent Company’s financial of recovery in industry volumes; delivery on the cost savings
Recurring risks Going concern resources or ability to continue initiatives; reduction of inventory levels and the delay of non-
operations over a period of at least a essential capital expenditure required for the manufacture of
In our opinion: The impact of new models.
year from the date of approval of the
uncertainties due to the financial statements.
• Historical comparisons: Evaluated the historical cash flow
• the financial statements give a true and fair view of the state UK exiting the European
The risks most likely to adversely forecasting accuracy of the Group by comparing historical
of the Group’s and of the parent Company’s affairs as at 31 Union on our audit
affect the Group and parent cash flows to actual results reported, as well as assessing the
March 2020 and of the Group’s loss for the year then ended; Impairment of long-life Company’s available financial accuracy of key assumptions previously applied.
assets resources over this period were:
• Benchmarking assumptions: Assessed the appropriateness of
• the Group financial statements have been properly prepared Capitalisation of product the Group’s key assumptions used in the cash flow forecasts by
• The impact of COVID-19
in accordance with International Financial Reporting engineering costs benchmarking them to externally derived data, with particular
lockdowns and related
focus on forecast sales volumes.
Standards as adopted by the European Union (IFRSs as Valuation of defined potential economic damage
benefit plan obligations on customer demand in the
adopted by the EU); • Sensitivity analysis: Considered sensitivities over the level
Group’s key markets together
Parent Company Recoverability of parent with the impact on the Group’s of available financial resources indicated by the Group’s cash
flow forecasts, taking account of severe but plausible adverse
• the parent Company financial statements have been key audit matter Company investment in supply chain and consequent
production capability. effects that could arise from risks related to key assumptions,
properly prepared in accordance with IFRSs as adopted by subsidiaries and
both individually and collectively. These sensitivities included:
intra- group debtors
the EU and as applied in accordance with the provisions of • The impact of Brexit on the significantly depressed sales volumes in key markets compared
to those reported for the year ended 31 March 2020; partly
the Companies Act 2006; and Group’s supply chain and on
the export of goods by not reducing the level of cost savings incorporated into the
maintaining free and frictionless forecasts (including selling, administrative and a number of
• the financial statements have been prepared in accordance trade. other cost categories); higher than expected inventory levels
and increased tariffs as a result of a hard Brexit.
with the requirements of the Companies Act 2006.
The risk for our audit is whether or
2 Key audit matters: including our assessment of risks of • Our sector experience: We used our industry specialists to
not those risks are such that they
Basis for opinion material misstatement amount to a material uncertainty that challenge the key assumptions made by the directors in their
may cast significant doubt about the forecast cash flows.
ability to continue as a going concern.
We conducted our audit in accordance with International Key audit matters are those matters that, in our professional • Evaluating directors’ intent: We evaluated the achievability
Had they been such, then that fact
Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our judgement, were of most significance in the audit of the would have been required to be of the actions the directors consider they would take to
improve the position should the risks to the key assumptions
responsibilities are described below. We believe that the audit financial statements and include the most significant assessed disclosed.
materialise. We considered the controllability, and timing, of
evidence we have obtained is a sufficient and appropriate basis risks of material misstatement (whether or not due to fraud) the identified mitigating actions, in particular focusing on the
for our opinion. Our audit opinion is consistent with our report to identified by us, including those which had the greatest effect deferral of non-essential capital and product development
expenditure, further reductions of discretionary marketing
the audit committee. on: the overall audit strategy; the allocation of resources in the
spend and warranty goodwill payments.
audit; and directing the efforts of the engagement team. These
matters were addressed, in the context of, and solely for the • Assessing transparency: Assessed the completeness and
accuracy of the matters disclosed in the going concern
purpose of, our audit of the financial statements as a whole, and
disclosure by considering whether it is consistent with our
in forming our opinion thereon, and consequently are incidental knowledge of the business.
to that opinion, and we do not provide a separate opinion on
these matters. In arriving at our audit opinion above, the key
audit matters were as follows (unchanged from 2019):

The risk Our response The risk Our response
The impact of Extreme levels of uncertainty We developed a standardised firm-wide approach to the Impairment of Forecast-based valuation Our procedures included:
uncertainties due consideration of the uncertainties arising from the UK’s long life assets
to the UK exiting The UK left the European Union (EU) departure from the EU in planning and performing our audits. The Group holds a significant amount of • Historical accuracy Evaluated historical forecasting
the European on 31 January 2020 and entered an Risk vs 2019 property, plant and equipment and long-life accuracy of cash flow forecasts, including key inputs,
Union on our implementation period which is due to Our procedures included: intangible assets on its balance sheet. including cash forecasts, by comparing them to the
audit operate until 31 December 2020. At that (Carrying value of actual results.
point current trade agreements with the • Our knowledge of the business – We considered the long life assets Property, plant and equipment and long-
Risk vs 2019 European Union terminate. The UK is directors’ assessment of risks arising from different £13,092 million; life intangible assets are at risk of being • Historical comparison Assessed appropriateness of the
entering negotiations over future trading outcomes to the trade negotiations for the Group’s 2019: £12,119 impaired as the COVID-19 pandemic Group’s assumptions used in the cash flow forecasts
relationships with the EU and a number business and financial resources compared with our own million) resulted in the temporary shutdowns of the by comparing those, where appropriate, to historical
of other countries. Where new trade understanding of the risks. We considered the directors’ automotive industry worldwide. trends in volumes, variable profit, selling, general and
agreements are not in place World Trade plans to take action to mitigate the risks. 58, 64 and 67 administrative expenses and capital expenditure.
Organisation (WTO) arrangements will (accounting policy) The effect of these matters is that, as part
be in force, meaning among other things • Sensitivity analysis – When addressing the impairment and page 86 of our risk assessment, we determined • Benchmarking assumptions: Assessed the
import and export tariffs, quotas and border of long-life assets and going concern and other that the calculation of the value in use of appropriateness of the Group’s calculated value in use
inspections, which may cause delivery areas that depend on forecasts, we compared the property, plant and equipment and long- amount by comparing the implied trading multiples
delays. Different potential outcomes of directors’ analysis to our assessment of the full range life intangible assets has a high degree of to market multiples of comparative companies
these trade negotiations could have wide of reasonably possible scenarios resulting from these estimation uncertainty, with a potential with the assistance of our valuation specialists.
ranging impacts on the Group’s operations uncertainties and, where forecast cash flows are range of reasonable outcomes greater than
and the future economic environment in the required to be discounted, considered adjustments to our materiality for the financial statements Assessed appropriateness of the Group’s assumptions
UK and EU. discount rates for the level of remaining uncertainty. as a whole, and possibly many times that used in the cash flow projections by comparing the key
amount. The financial statements note 18 input of sales volumes to externally derived data.
All audits assess and challenge the • Assessing transparency – As well as assessing disclose the sensitivities estimated by the
reasonableness of estimates, in particular individual disclosures as part of our procedures on the Group. Compared the Group’s discount rate and long
as described in the impairment of long-life long-life assets and going concern we considered all term growth rate to external benchmark data and
assets below, and related disclosures; and of the disclosures concerning uncertainties related to comparative companies and re-performed the discount
the appropriateness of the going concern the UK’s future trading relationships together, including rate calculation using the capital asset pricing model
basis of preparation of the financial those in the strategic report, comparing the overall with the assistance of our valuation specialists.
statements (see above). All of these depend picture against our understanding of the risks.
on assessments of the future economic • Sensitivity analysis: Performed a breakeven analysis on
environment and the Group’s future However, no audit should be expected to predict the the assumptions noted above.
prospects and performance. unknowable factors or all possible future implications for a
company and this is particularly the case in relation to the • Comparing valuations: Assessed the Group’s
The uncertainty over the UK’s future trading impact of the UK’s departure from the EU. reconciliation between the estimated market
relationships with the rest of the world capitalisation of the Group, by reference to the overall
and related economic effects give rise to market capitalisation of the Tata Motors Limited Group,
extreme levels of uncertainty, with the full and compared to the estimated recoverable amount of
range of possible effects currently unknown. the cash generating unit.
• Assessing transparency: Assessed the adequacy of

the Group’s disclosures in the financial statements and
ensured that the disclosure reflects reasonably possible
changes in key assumptions that erode the headroom
in the recoverable amount compared to the cash
generating unit carrying value to nil.

The risk Our response The risk Our response
Capitalisation of Subjective judgement Our procedures included: Valuation of defined Subjective valuation Our procedures included:
product engineering benefit plan
costs The Group capitalises a high proportion of • Control operation: Tested controls over the Group’s obligations Small changes in the key assumptions • Control Operation: Tested controls over the
product development spend and there is retrospective review of historically forecast material and estimates, being the discount assumptions applied in the valuation and
Risk vs 2019 a key judgement in determining whether production costs at the point capitalisation commenced Risk vs 2019 rate, inflation rate and mortality/ life inspected the Group’s annual validation of
the nature of the product engineering against actual costs observed in manufacture. This expectancy, used to value the Group’s the assumptions used by its actuarial expert.
(£1,426 million; costs satisfy the criteria for capitalisation historical accuracy is a key input into the directors’ (£7,788 million; pension obligation (before deducting Tested the Group’s controls operating over selection and
2019: £1,579 million) to ‘Intangible Assets, Product assessment of whether the future economic benefit 2019: £8,648 million) scheme assets) would have a significant monitoring of its actuarial expert for competence and
Development in Progress’ and when of development projects is probable and the control effect on the amount of the Groups’ net objectivity.
57 and 64 (accoun- this capitalisation should commence. over the Group’s judgements as to whether costs are Refer to page 65 defined benefit plan asset/(obligation).
ting policy and page The judgement of when capitalisation considered directly attributable. Defined benefit The risk is that these assumptions are • Benchmarking assumptions: Challenged, with the
86 should commence consists of a number obligation estimate inappropriate resulting in an inappropriate support of our own actuarial specialists, the key
of judgements regarding the satisfaction • Our experience: Critically assessed whether the (accounting policy) valuation of plan obligations. assumptions applied to the valuation of the liabilities,
of IAS 38 capitalisation criteria, and a directors’ judgements regarding identified directly and pages 97 to being the discount rate, inflation rate and mortality/ life
key judgement is assessing whether attributable costs against both the accounting 103, Defined benefit The effect of these matters is that, expectancy against externally derived data.
development projects will generate standards and our experience of practical application of obligation as part of our risk assessment, we
probable future economic benefit. these standards in other companies. determined that valuation of the pension • Assessing transparency: Considered the adequacy of
obligation has a high degree of estimation the Group’s disclosures in respect of the sensitivity of
The financial statements (note 2) disclose • Benchmarking assumptions: For a sample of the uncertainty, with a potential range of the Groups’ net defined benefit plan asset/(obligation)
that had the value of central overheads volume assumptions contained in capitalised projects, reasonable outcomes greater than our to these assumptions
not been classed as directly attributable compared the Group’s assessment of economic viability materiality for the financial statements
it would have reduced the amount to externally derived data. as a whole, and possibly many times that
capitalised by £117 million. amount. The financial statements (note
• Sensitivity analysis: For a sample of the Group’s 32) disclose the sensitivity estimated by
assessments of economic viability of development the Group.
projects, assessed the Group’s application of appropriate
downside sensitivities in establishing whether future
economic benefit is considered probable.
• Historical comparison: Performed a retrospective

review to assess previous economic viability
assumptions against actual outturn.
• Assessing transparency: Assessed the adequacy of the

Group’s disclosures in respect of the key judgements
made relating to the nature of the costs capitalised and
the point at which capitalisation commences.

Group team approved the component materialities, which United States of America and China to assess the audit risk
The risk Our response ranged from £15 million to £70 million (2019: £15 million to £95 and strategy. However, planned visits to review the completed
million), having regard to the mix of size and risk profile of the audit work at the year-end in those component locations were
Recoverability of Low risk, high value Our procedures included: Group across the components. prevented by movement restrictions relating to the COVID-19
parent Company pandemic. Instead, in-line with our approach to the other
investment in The amount of the parent Company’s • Tests of detail: Compared the carrying amount of the
subsidiaries and parent Company’s only investment with the subsidiary’s The work on 9 of the 11 (2019: 9 of the 11) components was component locations, video and telephone conference meetings
investment in its subsidiary, which acts as
intra-group an intermediate holding company for the draft balance sheet and assessed 100% of the intra- performed by component auditors and the rest, including the were held to discuss the findings reported to the Group team in
debtors rest of the parent Company’s subsidiaries, group debtor balance to identify whether its net assets, audit of the parent Company, was performed by the Group team. more detail, and any further work required by the Group team
represents 22% (2019: 25%) of the being an approximation of its minimum recoverable
Risk vs 2019 amount, was in excess of its carrying amount. The Group team visited 2 (2019: 3) component locations in the was then performed by the component auditor.
parent Company’s assets. The carrying
amount of the intra-group debtors
Investment (£1,655 balance comprises the remaining 78% • Assessing subsidiary audits: Assessed the work
million; 2019: (2019: 75%). performed as part of the group audit over the
£1,655million) subsidiaries’ profits and net assets.
Their recoverability is not at a high risk Group Revenue Group Materiality
Intra-group debtors of significant misstatement or subject to • Comparing valuations: Compared the carrying amount
£22,984m (2019: £24,214m) £85.9m (2019: £100m)
(£5,728 million; significant judgement. of the investment in the subsidiary to the Group’s
2019: £4,898 million) estimated market capitalisation of its ultimate parent,
However, due to their materiality and adjusted to exclude the liabilities of the parent Company
and net assets of companies outside the Group, being
following the weak trading performance £85.9m
of the Group, in the context of the parent an approximation of the recoverable amount of the
investment. Whole financial statements materiality (2019: £100m)
Company financial statements this is
considered to be one of the areas that
had the greatest effect on our overall £70m
parent Company audit.
Range of materiality at 11 (2019: 11) components (£15m-£70m)
(2019: £15m to £95m)
3 Our application of materiality and an overview of the scope The 7 (2019: 7) components subjected to specified risk-focused
of our audit audit procedures are as follows: Revenue £4.3m
Group materiality Misstatements reported to the audit committee (2019: £5m)
Materiality for the Group financial statements as a whole was set • Revenue - 5 components (2019: 5)
at £85.9 million (2019: £100 million), determined with reference • Material & other cost of sales - 1 component (2019: 1)
to a benchmark of Group revenue of £22,984 million (2019: • Other expenses - 2 components (2019: 2)
£24,214 million) of which it represents 0.4% (2019: 0.4%). • Property, plant and equipment - 1 component (2019: 1)
• Deferred tax assets - 2 components (2019: 2) Group Revenue Group total assets
We consider Group revenue to be the most appropriate • Inventories - 6 components (2019: 6)
benchmark, as it provides a more stable measure year on year • Accounts payable - 2 components (2019: 2)
10%
than Group profit or loss before tax. • Other current liabilities - 2 components (2019: 2) 7%
14%
• Other non-current liabilities - 2 components (2019: 2)
Materiality for the parent Company financial statements as a 13% 88% 95% 85%
whole was set at £37 million (2019: £65 million), determined The components within the scope of our work accounted for the (2019: 85%) (2019: 93%)
72%
with reference to a benchmark of the parent Company total percentages illustrated opposite.
assets of £7,385 million (2019: £6,556 million), of which it 86%
represents 0.5% (2019: 1.0%). The remaining 12% (2019: 15%) of Group revenue, 3% (2019:
74%
3%) of the total profits and losses that made up Group loss before
We agreed to report to the Audit Committee any corrected or tax and 5% (2019: 7%) of total Group assets are represented by
uncorrected identified misstatements exceeding £4.3 million 27 (2019:26) reporting components, none of which individually
(2019: £5 million) in addition to other identified misstatements represented more than 2% (2019: 3%) of any of Group revenue, Total profits and losses that made up Group loss before tax
that warranted reporting on qualitative grounds. total profits and losses that made up Group loss before tax or
total Group assets. For the residual components, we performed 3% Full scope for group audit purposes 2020
analysis at an aggregated Group level to re-examine our 2%
Of the Group’s 38 (2019: 37) reporting components, we Specified risk-focused audit procedures 2020
subjected 4 (2019: 4) to full scope audits for group purposes and assessment that there were no significant risks of material
Full scope for group audit purposes 2019
7 (2019:7) to specified risk-focused risk focused procedures. misstatement within these.
The latter were not individually financially significant enough 97% Specified risk-focused audit procedures 2019
(2019: 97%) 95%
to require a full scope audit for group purposes but did present The Group team instructed component auditors as to the Residual components
specific individual risks that needed to be addressed. significant areas to be covered, including the relevant risks
detailed above and the information to be reported back. The
94%

4 We have nothing to report on going concern Strategic report and directors’ report conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise
The directors have prepared the financial statements on the Based solely on our work on the other information: from fraud or error and are considered material if, individually or
going concern basis as they do not intend to liquidate the parent in aggregate, they could reasonably be expected to influence the
Company or the Group or to cease their operations, and as they • we have not identified material misstatements in the economic decisions of users taken on the basis of the financial
have concluded that the parent Company’s and the Group’s strategic report and the directors’ report; statements.
financial position means that this is realistic. They have also • in our opinion the information given in those reports for the
concluded that there are no material uncertainties that could financial year is consistent with the financial statements; A fuller description of our responsibilities is provided on the FRC’s
have cast significant doubt over their ability to continue as a and website at www.frc.org.uk/auditorsresponsibilities.
going concern for at least a year from the date of approval of the • in our opinion those reports have been prepared in
financial statements (“the going concern period”). accordance with the Companies Act 2006. 8 The purpose of our audit work and to whom we owe our
responsibilities
Our responsibility is to conclude on the appropriateness of the 6 We have nothing to report on the other matters on which we
directors’ conclusions and, had there been a material uncertainty are required to report by exception This report is made solely to the Company’s members, as a body,
related to going concern, to make reference to that in this audit in accordance with Chapter 3 of Part 16 of the Companies Act
report. However, as we cannot predict all future events or Under the Companies Act 2006, we are required to report to you 2006. Our audit work has been undertaken so that we might
conditions and as subsequent events may result in outcomes if, in our opinion: state to the Company’s members those matters we are required
that are inconsistent with judgements that were reasonable at to state to them in an auditor’s report and for no other purpose.
the time they were made, the absence of reference to a material • Adequate accounting records have not been kept by the To the fullest extent permitted by law, we do not accept or
uncertainty in this auditor’s report is not a guarantee that the parent Company, or returns adequate for our audit have not assume responsibility to anyone other than the Company and
Group and the parent Company will continue in operation. been received from branches not visited by us; or the Company’s members, as a body, for our audit work, for this
• The parent Company financial statements are not in report, or for the opinions we have formed.
We identified going concern as a key audit matter (see section agreement with the accounting records and returns; or
2 of this report). Based on the work described in our response • Certain disclosures of directors’ remuneration specified by
to that key audit matter, we are required to report to you if we law are not made; or
have anything material to add or draw attention to in relation to • We have not received all the information and explanations
the directors’ statement in note 2 to the financial statements on we require for our audit.
the use of the going concern basis of accounting with no material Simon Haydn-Jones (Senior Statutory Auditor) for and on
uncertainties that may cast significant doubt over the Group We have nothing to report in these respects. behalf of KPMG LLP, Statutory Auditor
and the parent Company’s use of that basis for a period of at
least twelve months from the date of approval of the financial 7 Respective responsibilities Chartered Accountants
statements. One Snowhill
Directors’ responsibilities Snow Hill Queensway
We have nothing to report in this respect. Birmingham
As explained more fully in their statement set out on page 38, B4 6GH
the directors are responsible for: the preparation of the financial
5 We have nothing to report on the other information in the statements including being satisfied that they give a true and fair 2 July 2020
Annual Report view; such internal controls as they determine is necessary to
enable the preparation of financial statements that are free from
The directors are responsible for the other information presented material misstatement, whether due to fraud or error; assessing
in the Annual Report together with the financial statements. Our the Group and parent Company’s ability to continue as a going
opinion on the financial statements does not cover the other concern, disclosing, as applicable, matters related to going
information and, accordingly, we do not express an audit opinion concern; and using the going concern basis of accounting unless
or, except as explicitly stated below, any form of assurance they either intend to liquidate the Group or the parent Company
conclusion thereon. or to cease operations, or have no realistic alternative but to do
so.
Our responsibility is to read the other information and, in doing so,
consider whether, based on our financial statements audit work, Auditor’s responsibilities
the information therein is materially misstated or inconsistent
with the financial statements or our audit knowledge. Based solely Our objectives are to obtain reasonable assurance about
on that work we have not identified material misstatements in whether the financial statements as a whole are free from
the other information. material misstatement, whether due to fraud or error, and to
issue our opinion in an auditor’s report. Reasonable assurance
is a high level of assurance, but does not guarantee that an audit

F I N A N C I A L S TAT E M E N T S
C O N S O L I D AT E D I N C O M E S TAT E M E N T C O N S O L I D AT E D B A L A N C E S H E E T
Year ended 31 March (£ millions) Note 2020 2019 2018 As at (£ millions) Note 2020 2019 2018
Revenue 5 22,984 24,214 25,786 Non-current assets

Material and other cost of sales* 4,6 (14,684) (15,670) (16,328) Investments 15 399 546 516
Employee costs* 4,7 (2,568) (2,820) (2,722) Other financial assets 16 257 170 414
Other expenses* 4,10 (5,238) (5,567) (5,846) Property, plant and equipment 17 6,814 6,492 7,417
Exceptional items 4 (29) (3,271) 438 Intangible assets 18 6,278 5,627 6,763
Engineering costs capitalised 11 1,369 1,576 1,610 Right-of-use assets 36 568 - -
Other income 174 205 420 Pension asset 32 408 - -
Depreciation and amortisation (1,910) (2,164) (2,075) Other non-current assets 19 23 83 82
Foreign exchange (loss)/gain and fair value adjustments (249) (59) 29 Deferred tax assets 20 523 512 413
Finance income 12 52 35 33 Total non-current assets 15,270 13,430 15,605
Finance expense (net) 12 (209) (111) (85) Current assets
Share of (loss)/profit of equity accounted investments 15 (114) 3 252 Cash and cash equivalents 21 2,271 2,747 2,626
(Loss)/profit before tax (422) (3,629) 1,512 Short-term deposits and other investments 1,393 1,028 2,031
Income tax (expense)/credit 14 (47) 308 (398) Trade receivables 833 1,362 1,612
(Loss)/profit for the year (469) (3,321) 1,114 Other financial assets 16 383 314 494
Attributable to: Inventories 23 3,468 3,608 3,767
Owners of the Company (471) (3,325) 1,112 Other current assets 19 477 570 630
Non-controlling interests 2 4 2 Current tax assets 9 10 10
Total current assets 8,834 9,639 11,170
*‘Material and other cost of sales’, ‘Employee costs’ and ‘Other expenses’ exclude the exceptional items explained in note 4.
Total assets 24,104 23,069 26,775
The notes on pages 53 to 124 are an integral part of these consolidated financial statements. Current liabilities
Accounts payable 24 6,499 7,083 7,614
Short-term borrowings 25 526 881 652
Other financial liabilities 26 1,073 1,042 1,189
C O N S O L I D AT E D S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E A N D E X P E N S E
Provisions 27 944 988 758
Other current liabilities 28 716 664 547
Year ended 31 March (£ millions) Note 2020 2019 2018 Current tax liabilities 100 94 160
Total current liabilities 9,858 10,752 10,920
(Loss)/profit for the year (469) (3,321) 1,114 Non-current liabilities
Items that will not be reclassified subsequently to profit or loss: Long-term borrowings 25 4,817 3,599 3,060
Remeasurement of net defined benefit obligation 32 983 (270) 546 Other financial liabilities 26 778 310 281
Gain/(loss) on effective cash flow hedges of inventory 75 (197) - Provisions 27 1,355 1,140 1,055
Income tax related to items that will not be reclassified 14, 20 (170) 76 (89) Retirement benefit obligation 32 28 667 438
888 (391) 457 Other non-current liabilities 28 533 521 454
Items that may be reclassified subsequently to profit or loss: Deferred tax liabilities 20 179 101 583
Gain on cash flow hedges (net) 229 92 2,442 Total non-current liabilities 7,690 6,338 5,871
Currency translation differences 21 (4) (4) Total liabilities 17,548 17,090 16,791
Income tax related to items that may be reclassified 14, 20 (42) (19) (462) Equity attributable to shareholders
208 69 1,976 Ordinary shares 29 1,501 1,501 1,501
Other comprehensive income/(expense) net of tax 1,096 (322) 2,433 Capital redemption reserve 29 167 167 167
Total comprehensive income/(expense) attributable to shareholder 627 (3,643) 3,547 Other reserves 30 4,880 4,305 8,308
Attributable to: Equity attributable to shareholders 6,548 5,973 9,976
Owners of the Company 625 (3,647) 3,545 Non-controlling interests 8 6 8
Non-controlling interests 2 4 2 Total equity 6,556 5,979 9,984
Total liabilities and equity 24,104 23,069 26,775
The notes on pages 53 to 124 are an integral part of these consolidated financial statements. The notes on pages 53 to 124 are an integral part of these consolidated financial statements.
These consolidated financial statements were approved by the JLR plc Board and authorised for issue on 2 July 2020.
They were signed on its behalf by:

CHIEF EXECUTIVE OFFICER
COMPANY REGISTERED NUMBER: 06477691
C O N S O L I D AT E D S TAT E M E N T O F C H A N G E S I N E Q U I T Y C O N S O L I D AT E D C A S H F L O W S TAT E M E N T
Ordinary Capital Other Equity Non- Total

(£ millions) shares redemption reserves attributable to controlling equity Year ended 31 March (£ millions) Note 2020 2019 2018
reserve shareholder interests
Balance at 1 April 2019 1,501 167 4,305 5,973 6 5,979 Cash flows from operating activities
Adjustment on initial application of Cash generated from operations 38 2,399 2,458 3,064
IFRS 16 (net of tax) - - (23) (23) - (23) Dividends received 15 67 22 206
Adjusted balance at 1 April 2019 1,501 167 4,282 5,950 6 5,956 Income tax paid (152) (227) (312)
(Loss)/profit for the year - - (471) (471) 2 (469) Net cash generated from operating activities 2,314 2,253 2,958
Other comprehensive income for the Cash flows used in investing activities
year - - 1,096 1,096 - 1,096 Investment in equity accounted investments (67) - -
Total comprehensive income - - 625 625 2 627
Purchases of other investments (11) (14) (25)
Amounts removed from hedge reserve
Investment in other restricted deposits (35) (35) (26)
and recognised in inventory - - (33) (33) - (33)
Redemption of other restricted deposits 31 36 16
Income tax related to amounts
removed from hedge reserve and Movements in other restricted deposits (4) 1 (10)
recognised in inventory - - 6 6 - 6 Investment in short-term deposits and other investments (4,010) (2,437) (5,493)
Balance at 31 March 2020 1,501 167 4,880 6,548 8 6,556 Redemption of short-term deposits and other investments 3,659 3,511 6,016
Movements in short-term deposits and other investments (351) 1,074 523
Balance at 1 April 2018 1,501 167 8,308 9,976 8 9,984 Purchases of property, plant and equipment (1,281) (1,590) (2,135)
Adjustment on initial application of Proceeds from sale of property, plant and equipment 1 2 -
- - (32) (32) - (32)
IFRS 9 and IFRS 15 (net of tax)
Adjusted balance at 1 April 2018 1,501 167 8,276 9,944 8 9,952 Cash paid for intangible assets (1,511) (1,785) (1,614)
(Loss)/profit for the year - - (3,325) (3,325) 4 (3,321) Finance income received 50 34 33
Other comprehensive expense for the Acquisition of subsidiaries (net of cash acquired) (3) - 6
- - (322) (322) - (322)
year Net cash used in investing activities (3,177) (2,278) (3,222)
Total comprehensive (expense)/ Cash flows used in financing activities
income - - (3,647) (3,647) 4 (3,643)
Finance expenses and fees paid (262) (210) (158)
Amounts removed from hedge reserve
and recognised in inventory - - (122) (122) - (122) Proceeds from issuance of short-term borrowings 2 649 543
Income tax related to amounts Repayment of short-term borrowings (115) (703) (546)
removed from hedge reserve and Proceeds from issuance of long-term borrowings 1,600 1,214 373
recognised in inventory - - 23 23 - 23 Repayment of long-term borrowings (824) (547) -
Dividend - - (225) (225) - (225) Payments of lease obligations (72) (2) (4)
Distribution to non-controlling interest - - - - (6) (6) Distributions to non-controlling interests - (3) (5)
Balance at 31 March 2019 1,501 167 4,305 5,973 6 5,979 Dividends paid 31 - (225) (150)
Net cash used in financing activities 329 173 53
Balance at 1 April 2017 1,501 167 4,913 6,581 - 6,581 Net (decrease)/increase in cash and cash equivalents (534) 148 (211)
Profit for the year - - 1,112 1,112 2 1,114 Cash and cash equivalents at beginning of year 21 2,747 2,626 2,878
Other comprehensive income for the Effect of foreign exchange on cash and cash equivalents 58 (27) (41)
year - - 2,433 2,433 - 2,433
Cash and cash equivalents at end of year 21 2,271 2,747 2,626
Total comprehensive income - - 3,545 3,545 2 3,547
Dividend - - (150) (150) - (150)
Acquisition of non-controlling interest - - - - 11 11 The notes on pages 53 to 124 are an integral part of these consolidated financial statements.
Distribution to non-controlling interest - - - - (5) (5)
Balance at 31 March 2018 1,501 167 8,308 9,976 8 9,984
The notes on pages 53 to 124 are an integral part of these consolidated financial statements.

N O T E S ( F O R M I N G PA R T O F T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S ) 2019 and the Chinese £567 million syndicated loan in June recover.
2020. In addition, Jaguar Land Rover has had discussions to
1 Background and operations basis. The directors have adopted this basis following a rigorous access part of the £330 billion of guarantees announced by the As a result of the impact of COVID-19 on sales and production,
assessment of the financial position and forecasts of the Group UK government to assist companies with COVID-19 but nothing the Group had negative free cash in April and May of about £1.5
Jaguar Land Rover Automotive plc (“the Company”) and its though to 30 September 2021. In particular, careful consideration has been agreed so the going concern analysis does not assume billion. This includes a £1.2 billion unwind of working capital
subsidiaries are collectively referred to as “the Group” or “JLR”. has been given to the impact of COVID-19, in recognition of anything for this. resulting from the plant shutdowns. The working capital unwind
The Company is a public limited company incorporated and the impact it has had on the global economy and automotive primarily reflects the runoff of payments to suppliers for vehicles
domiciled in the United Kingdom. The address of its registered industry. The impact has been significant, requiring temporary Although Jaguar Land Rover is ultimately owned by Tata Motors built before the plant shutdowns, offset partially by the sale of
office is Abbey Road, Whitley, Coventry CV3 4LF, England, United plant and retailer shutdowns, thereby impacting production and Limited, Jaguar Land Rover operates its own Treasury function vehicles in inventory. Cash at the end of May was about £2.4
Kingdom. sales, and creating substantial uncertainty over the timeframe with its own funding and banking arrangements. billion, including about £278 million in international subsidiaries
for economies and the automotive industry to recover. and the revolving credit facility of £1.9 billion remained available
The Company is a subsidiary of Tata Motors Limited, India and Tata Motors Limited is listed on the New York Stock Exchange and undrawn. A free cash outflow of less than £2 billion is now
acts as an intermediate holding company for the Jaguar Land Liquidity and funding and stock exchanges in Mumbai (Bombay Stock Exchange and expected in Q1 of Fiscal 2020/21.
Rover business. The principal activity during the year was the The Group ended Fiscal 2019/20 with substantial liquidity of National Stock Exchange) but is over 42% owned by Tata Sons
design, development, manufacture and marketing of high- £5.6 billion, including £3.7 billion of cash and other highly liquid and other entities in the Tata Group. The Group is not dependent The Group is planning for a gradual recovery in the business as
performance luxury saloons, specialist sports cars and four- investments and a £1.9 billion undrawn revolving credit facility. on Tata Motors or other affiliates of Tata Sons for funding and lockdowns are relaxed and economies recover. The pick-up in
wheel-drive off-road vehicles. Net debt was £2.2 billion after £5.9 billion of gross debt and net only has insignificant trading balances with these companies. China has been encouraging with all retailers now open and retail
assets stood at £6.6 billion. Jaguar Land Rover dividend policy is to pay out 25% of after- sales of 6,828 vehicles in April 2020 (down 3.1% compared to
These consolidated financial statements have been prepared tax earnings subject to various considerations. In performing April 2019) and 8,068 in May 2020 (up 4.2% compared to May
in Pound Sterling (GBP) and rounded to the nearest million GBP The £5.9 billion of gross debt consists mainly of long-dated their going concern assessment, the directors have assumed 2019). The sales of Range Rover and Range Rover Sport have
(£ million) unless otherwise stated. Results for the year ended bonds (£3.8 billion with various maturities out to 2027, a $1 that there are no significant changes in funding arrangements been particularly encouraging.
and as at 31 March 2018 have been disclosed solely for the billion syndicated bank loan (£812 million) with final maturity in with respect to Tata Motors or affiliates of Tata Sons Ltd (other
information of the users. 2025, a £625 million amortising UKEF facility with final maturity than Jaguar Land Rover Automotive plc and its subsidiaries) and Other regions have seen peak lockdowns in April with total
in 2024 (amortized to £573 million), a £100 million short term no dividends are paid by Jaguar Land Rover Automotive plc to worldwide retail sales of 14,709 vehicles in April (down 62.5%
2 Accounting policies secured fleet buy back working capital facility and £540 million shareholders over the assessment period. year-on-year), improving somewhat in May to 20,024 units
of leases. The only contractual debt maturities over the review (down 43.3%). Sales are expected to gradually recover in other
Statement of compliance period are a £300 million bond maturity in January 2021 and JLR generally requires payment from retailers on or shortly after regions following the reopening of retailers. Most recently, over
the amortisation of £188 million of the UKEF facility as well delivery of the vehicle. Most retailers use wholesale financing 97% of retailers worldwide are open or partially open.
These consolidated and parent company financial statements as the Black Horse fleet buy back facility maturing in Q3 FY21. arrangements in place to pay for vehicles. These facilities do not
have been prepared in accordance with International Financial The undrawn revolving credit facility matures in July 2022. The involve recourse to the Group in general and are not accounted The Group plans to resume production gradually to meet demand
Reporting Standards (IFRS) and IFRS Interpretation Committee debt and revolving credit facility have no financial covenant as JLR debt. The directors expect these facilities to continue as it recovers. The Solihull and Halewood assembly plants
(IFRS IC) interpretations as adopted by the European Union (EU) requirements, with the exception of the UKEF facility, which has over the going concern review period in all scenarios. In the and engine plant in the UK, the Slovakia plant and contract
and the requirements of the United Kingdom Companies Act a £1 billion global liquidity requirement, measured at Quarter event any of these facilities were not to continue and retailers manufacturing line in Graz (Austria) restarted from mid-May. The
2006 applicable to companies reporting under IFRS. ends. This is not projected to be breached in any of the downside were unable to settle invoices immediately, working capital Castle Bromwich plant will reopen in due course while the joint
scenarios assessed and summarised later in this disclosure. See would be negatively impacted, possibly significantly, but this venture plant in China has been re-open since late February.
The Company has taken advantage of section 408 of the note 25, Interest Bearing Loans and Borrowings, for additional risk is considered remote. In addition, the Group has in place
Companies Act 2006 and, therefore, the separate financial detail. a $700 million debt factoring facility for selected retailers and Given the present uncertainties, Jaguar Land Rover will continue
statements of the Company do not include the income statement distributors without such wholesale financing arrangements in to manage costs and investment spending rigorously to protect
or the statement of comprehensive income of the Company on Subsequent to the year end, Jaguar Land Rover increased an place (£392 million utilised at the end of Fiscal 2019/20). The liquidity. The Group has announced the Project Charge (now
a stand-alone basis. existing short-term working capital facility from £100 million to facility matures in March 2021 and the directors expect this to Charge+) transformation programme achieved a further £600
£163 million and a wholly-owned Chinese subsidiary completed be renewed at that time. In the event any of these facilities were million of cash improvements in the Q4 of Fiscal 2019/20,
Basis of preparation a £170m equivalent 1-year loan with a Chinese bank. The £170 not to continue, working capital would be negatively impacted, increasing lifetime savings under the programme to £3.5 billion
million equivalent loan was then repaid in June and replaced with possibly significantly, but this risk is considered remote. since launch in the Q2 of Fiscal 2018/19, including investment
The consolidated financial statements have been prepared on a new 3-year £567 million equivalent facility with a syndicate of saving of £1.9 billion measured relative to original planning
a historical cost basis except for certain financial instruments, 5 Chinese banks. The £567 million equivalent syndicated loan Update on trading performance since year end targets. (All savings attributed to Project Charge+ are unaudited
which are measured at fair value. Historical cost is generally is subject to an annual review customary in the Chinese banking The COVID-19 pandemic and resulting lockdowns resulted in a pro forma analytical estimates.)
based on the fair value of the consideration given in exchange market and a profitability covenant and leverage covenant sharp drop in sales, first in China in late January, and then other
for the assets. The principal accounting policies adopted are set applicable only to Jaguar Land Rover’s Chinese subsidiary, which regions in late March, with a peak sales decrease in April. Jaguar The Group has announced a Charge+ saving target for Fiscal
out below. The balance sheet and accompanying notes as at 31 are not expected to be breached in any of the scenarios tested. Land Rover responded quickly to the COVID-19 pandemic with 2020/21 of £1.5 billion across investment spending, inventory,
March 2018 have been disclosed solely for the information of the See note 42, Subsequent Events, for additional detail. temporary plant shutdowns and rigorous cost and investment and selling and administrative as well as material and warranty
users. controls to conserve cash as much as possible. The China joint costs.
The Group has a strong track record of raising funding in the venture production plant was shut down in late January and
Going concern bond and bank markets and continues to expect it will have reopened in late February. All plants outside of China were The Group has also implemented enhanced cost and investment
opportunities to issue new funding in the future as evidenced by shutdown from late March with most plants restarting from mid- reduction processes and controls complementing Project
The financial statements have been prepared on a going concern the completion of €1 billion of bonds in November and December May and production is expected to gradually increase as sales Charge+ in response to COVID-19. This includes reductions

in non-product spending and lower margin and non-critical • Global industry volumes of about 55 million units for affect the Group’s returns. Associates are those entities in
investment spending and numerous other cost control measures. calendar year 2020 and about 65 million units for calendar • Certain other discretionary costs. which the Group has significant influence but not control or joint
year 2021, representing decreases of about 39% and control. Significant influence is the power to participate in the
As discussed, the outlook beyond Q1 this year remains uncertain. 28% respectively compared to calendar year 2019. This In this more severe scenario, and taking into account these financial and operating policy decisions of the investee and is
However, Jaguar Land Rover presently expects a gradual represents a more L shaped recovery from COVID-19, based controllable mitigating actions, total liquidity including the presumed to exist when the Group holds between 20 and 50 per
recovery of sales consistent with external industry estimates and on selected external industry downside forecasts. revolving credit facility was forecast to remain adequate cent of the voting power of the investee.
improving cash flow boosted by the recovery of working capital (without breaching the UKEF quarter–end liquidity covenant)
as a result of the resumption of production, lower investment • Compared to Fiscal 2019/20, a decline in JLR wholesale but with more limited headroom. Joint ventures and associates are accounted for using the
and other Project Charge+ cost reductions. volumes for Fiscal 2020/21 and Fiscal 2021/22 broadly equity method and are recognised initially at cost. The Group’s
similar to the assumed industry decline referenced, with Going concern conclusions investment includes goodwill identified on acquisition, net of
Going concern forecast scenarios adjustment for the effect of moving from a calendar year to As described above, the directors have considered going concern any accumulated impairment losses. The consolidated financial
For the purposes of assessing going concern over the period from the Group’s 31st March year-end. in 3 scenarios: 1) base case, 2) severe and 3) extreme severe. statements include the Group’s share of the income and
the date of signing of the accounts to 30 September 2021, the expenses, other comprehensive income and equity movements
directors have considered 3 scenarios: 1) base case, 2) severe Investment, inventory and cost improvements broadly consistent In each of these scenarios, sufficient liquidity is forecast for of equity accounted investments, from the date that joint control
and 3) extreme severe. These scenarios are summarised below. with Project Charge targets indicated above but increased by the Group to operate and discharge its liabilities as they fall or significant influence commences until the date that joint
Additional assumption details are provided in note 41 of the about 15% in FY21 and about 5% in FY22 to partially mitigate due, taking into account only cash generated from operations, control or significant influence ceases. When the Group’s share
accounts. the lower volumes in this scenario. controllable mitigating actions and the funding facilities existing of losses exceeds its interest in an equity accounted investment,
on the date of authorisation of these financial statements, the carrying amount of that interest (including any long-term
As indicated, Jaguar Land Rover had about £2.4 billion of cash Total liquidity including the revolving credit facility was forecast including the presently undrawn revolving credit facility. In investments) is reduced to nil and the recognition of further
and short-term liquid investments at the end of May 2020. This to remain adequate in this scenario but with lower headroom practice, the directors also expect the Group will be able to losses is discontinued except to the extent that the Group has
includes the £63 million increase in short term working capital than in the base case. raise additional funding facilities over the assessment period to an obligation or has made payments on behalf of the investee.
facility and £170 million equivalent 1-year loan with a Chinese increase available liquidity, considering the strong track record of
Bank which were complete after March 2020 and excludes the Scenario 3: extreme severe scenario raising funding in the bond and bank markets. When the Group transacts with a joint venture or associate of
£567 million equivalent 3-year loan facility completed in June the Group, profits and losses are eliminated to the extent of the
2020 which replaced the 1 year China loan. As a result, total An extreme severe scenario was assessed which is the same as The directors do not consider more extreme scenarios than the Group’s interest in its joint venture or associate.
debt at the date of signing was about £6.5 billion. Scenario 2 but with the following further sensitivities applied: ones assessed to be plausible.
Dividends received are recognised when the right to receive
Scenario 1: base case • A further volume reduction of about 5% in Fiscal 2020/21 As described above, the directors, after reviewing the Group’s payment is established.
The base case scenario assumes: resulting in JLR wholesale volumes down about 35% in Fiscal operating budgets, investment plans and financing arrangements,
2020/21 and about 27% in H1 Fiscal 2021/22, compared consider that the Group has sufficient funding available at the Use of estimates and judgements
• A global industry volume forecast of about 71 million units to Fiscal 2019/20. date of approval of these financial statements. Accordingly, the
for calendar year 2020 and 81 million units for 2021 based Directors are satisfied that it is appropriate to adopt the going The preparation of financial statements in conformity with IFRS
on external forecasts, representing decreases of about 21% • Partial non-achievement of Fiscal 2020/21 Charge+ targets concern basis in preparing the Annual Report and Accounts. requires the use of judgements, estimates and assumptions
and 10% respectively compared to 2019 industry volumes with respect to inventory and overhead cost savings as well that affect the reported amounts of assets and liabilities at the
of about 90 million units. as material, warranty and other costs. Basis of consolidation date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Those that
• A decrease in JLR wholesale volumes somewhat greater for • Modest incremental supply chain cash impacts results from Subsidiaries are significant to the Group are discussed separately below.
Fiscal 2020/21 and somewhat less for FY22 compared to COVID-19. The consolidated financial statements include Jaguar Land Rover
the industry assumptions referenced. Automotive plc and its subsidiaries. Subsidiaries are entities Notes 17 and 18 provide further details of the exceptional
• A hard Brexit resulting in 10% WTO tariffs on UK vehicle controlled by the Company. Control exists when the Company impairment charge recognised in the year ended 31 March 2019,
• Investment, inventory and cost improvements are broadly exports to EU countries and increased logistics and other has power over the investee, is exposed or has rights to variable including disclosing additional sensitivities performed.
consistent with the £1.5 billion Project Charge target associated costs from 1 January 2021 offset partially by return from its involvement with the investee and has the
described above in Fiscal 2020/21. There is not yet a the impact of a weaker pound expected in such a scenario. ability to use its power to affect its returns. In assessing control, Impact of COVID-19
Charge target for Fiscal 2021/22 and so not all of the saving potential voting rights that currently are exercisable are taken
in Fiscal 2020/21 are assumed to continue at the same level • A number of smaller other sensitivities. into account, as well as other contractual arrangements that may The Group has exercised its judgment in evaluating the impact of
in Fiscal 2021/22 for the purposes of this going concern influence control. All subsidiaries of the Group given in note 42 COVID-19 on the financial statements in response to the rapidly
analysis. In this more severe scenario, the directors have identified a to the parent company financial statements are included in the developing environment during the pandemic. A number of areas
number of “tough choice” mitigating actions within their control consolidated financial statements. Intercompany transactions have been identified as being relevant for consideration, and are
Total liquidity including the revolving credit facility is forecast that would be implemented to maintain sufficient liquidity in the and balances including unrealised profits are eliminated in full on discussed below as part of the Group’s assessment of accounting
to remain more than adequate with significant headroom in this business to remain a going concern. These actions include: consolidation. estimates and judgments, and where required, referenced further
scenario. Joint ventures and associates (equity accounted investments) within the specific note:
• Further significant reductions in investment spending; Joint ventures are those entities over whose activities the Group
Scenario 2: severe scenario has joint control, established by contractual agreement and • Revenue recognition; see note 2
The severe scenario assumes: • Reductions in fixed marketing and other selling and requiring unanimous consent for decisions about the relevant
marketing related costs; activities of the entity, being those activities that significantly • Taxation, see note 14;

for physical transfer to the customer (which it is, given that it various other factors that are believed to be reasonable under the by supplier, adjusted for inflation and applied to the population
• Impairment of tangible and intangible fixed assets, see is fully built and safety-checked off the manufacturing line) and circumstances, the results of which form the basis of making the of vehicles under warranty at the balance sheet date. Supplier
notes 17 and 18; the Group does not have the ability to use the vehicle or direct judgements about carrying values of assets and liabilities that reimbursement claims are presented as separate assets in note
it elsewhere. are not readily apparent from other sources. Actual results may 16.
• Variable marketing expense, see note 2; differ from these estimates. Significant estimates are those that
The Group assessed the impact of COVID-19 and the associated have a significant risk of resulting in a material adjustment to the The Group notes that changes in the automotive environment
• Inventory valuation, see note 23; regional and national lockdowns across the world in ensuring carrying amounts of assets and liabilities within the next year. regarding the increasing impact of battery electric vehicles
its revenue recognition judgments continued to be applied Other estimates are those that may affect carrying amounts in presents its own significant challenges, particularly due to
• Residual value risk, see note 27; appropriately, given logistics challenges across many markets the longer term. the lack of historical data available at this time to help inform
that the Group operates in. estimates for future warranty claims, as well as any associated
• Product warranty, see note 27; recoveries from suppliers due to such claims. The related
Assessment of cash-generating units: The Group has Significant estimates provisions are therefore made with the Group’s best estimate
• Employee benefits, see note 32; determined that there is one cash-generating unit. This is on at this time to settle such obligations in the future but will be
the basis that there are no smaller groups of assets that can Impairment of intangible and tangible fixed assets: The Group required to be continually refined as sufficient, real-world data
• Recoverability of receivables, see note 35; be identified with certainty that generate specific cash inflows has intangible assets with indefinite lives and therefore tests becomes available. Supplier recoveries are recognised only
that are independent of the inflows generated by other assets or annually whether intangible and tangible fixed assets have when the Group considers there to be virtual certainty over
• Hedging, see note 35; groups of assets. Refer to note 18. suffered any impairment. The recoverable amount of the cash- the reimbursement, which also requires historical evidence to
generating unit is based on the higher of value in use and the fair support.
• Capitalisation of product engineering costs, see note 2; Alternative performance measures (APMs): Management value less cost of disposal. Value in use is calculated from cash
exercises judgement in determining the adjustments to apply flow projections generally over five years using data from the Investment in equity accounted investees: At each balance
Judgements to IFRS measurements in order to derive APMs that provide Group’s latest internal forecasts and extrapolated beyond five sheet date or when there are indicators of impairment, the
additional useful information on the underlying trends. Refer to years using estimated long-term growth rates. Key assumptions Group assesses whether there is any objective evidence that the
In the process of applying the Group’s accounting policies, note 3. and sensitivities for impairment are disclosed in note 18. carrying value of equity accounted investments may be impaired.
management has made the following judgements, which have Given the economic impact of COVID-19 the Group assessed the
the most significant effect on the amounts recognised in the Capitalisation of product engineering costs: The Group Retirement benefit obligation: The present value of the post- carry value of its equity accounted investment.
consolidated financial statements: undertakes significant levels of research and development employment benefit obligations depends on a number of
activity, and for each vehicle programme a periodic review is factors, it is determined on an actuarial basis using a number The recoverable amount is dependent on a wide range of
Revenue recognition: Vehicle revenue, as the primary source of undertaken. The Group applies judgement in determining at of assumptions. The assumptions used in determining the net assumptions, including sales volume forecasts, operating
income for the Group, is recognised when control of the vehicle what point in a vehicle programme’s life cycle the recognition cost/(income) for pensions include the discount rate, inflation margin, capital expenditure and discount rate. Cash flows were
passes to the customer, which the Group has assessed is when criteria under IAS 38 are satisfied and estimates the proportion and mortality assumptions. Any changes in these assumptions prepared based on best available information available to the
the vehicle is either despatched or held on behalf of the customer of central overhead allocated. If a later point had been used will impact upon the carrying amount of post-employment Group, including historical trends, cycle plans and performance
but depends on the underlying terms of the customer contract. then this would have had the impact of reducing the amounts benefit obligations. Key assumptions and sensitivities for post- targets. Additionally, given the timing of the COVID-19 lockdown
Control of an asset refers to having the ability to direct the use of capitalised as product engineering costs. If central overheads had employment benefit obligations are disclosed in note 32. in China, post-lockdown trading information was also used. The
the asset and obtain substantially all of the remaining economic not been allocated it would have reduced the amount capitalised Group applied conservative assumptions reducing uncertainty
benefit. by £117 million. Other estimates associated with future management actions and initiatives.
The transfer of control depends on the consideration of a number The Group reviewed its methodology in line with the applicable Product warranties: The Group provides product warranties Based on the above assessment there was enough evidence to
of facts and circumstances surrounding the relevant transaction, accounting standards to ensure it continues to meet the criteria on all new vehicle sales. Provisions are generally recognised indicate that there was no impairment, however it was noted
such as the transfer of risks and rewards of ownership, transfer of for capitalising such costs in an environment impacted by when vehicles are sold or when new warranty programmes that any change in key assumptions could result in an erosion of
legal title, transfer of physical possession, customer acceptance COVID-19 to assess that the incremental benefits expected are initiated. Based on historical warranty claim experience, the headroom and trigger an impairment.
and whether or not an entity has a present right to payment. The continue to exceed the associated costs. assumptions have to be made on the type and extent of future
Group determines the transfer of control with reference to those warranty claims and customer goodwill (representing the The carrying values of equity accounted investments are
factors, thus ultimately driving revenue recognition. Deferred tax asset recognition: The extent to which deferred Group’s constructive obligation to its customers when managing disclosed in note 15.
tax assets can be recognised is based on an assessment of the those warranty claims), as well as on possible recall campaigns.
In some instances, the Group recognises revenue on a bill-and- probability that future taxable income will be available against These assessments are based on experience of the frequency Variable marketing expense: The Group offers sales incentives
hold basis where control of the vehicle has been transferred to which the deductible temporary differences and tax loss carry- and extent of vehicle faults and defects in the past. In addition, in the form of variable marketing expense to customers, which
the customer but physical possession is retained by the Group forwards can be utilised. In addition, significant judgement is the estimates also include assumptions on the amounts of vary depending on the timing and customer of any subsequent
(for example, within a vehicle holding compound) until a future required in assessing the impact of any legal or economic limits potential repair costs per vehicle and the effects of possible time sale of the vehicle. This sales incentive is accounted for as a
point in time. Revenue is recognised lon the meeting of bill-and- or uncertainties in various tax jurisdictions. or mileage limits. The provisions are regularly adjusted to reflect revenue reduction and is constrained to a level that is highly
hold criteria, which are considered to be met as the reason for new information. Refer to note 27. probable not to reverse the amount of revenue recognised when
the bill-and-hold is substantive (as the customer requests JLR Estimates and assumptions any associated uncertainty is subsequently resolved. The Group
to retain possession, usually due to a lack of available space at The Group also has back-to-back contractual arrangements estimates the expected sales incentive by market and considers
their own premises), the vehicles are identifiable as separately The areas where assumptions and estimates are significant to the with its suppliers in the event that a vehicle fault is proven uncertainties including competitor pricing, ageing of retailer
belonging to the customer (on the basis that each vehicle has a financial statements are as described below. The estimates and to be a supplier’s fault. Estimates are made of the expected stock and local market conditions. The constraint on variable
unique Vehicle Identification Number), the vehicle must be ready associated assumptions are based on historical experience and reimbursement claims based upon historical levels of recoveries consideration is estimated with reference to historical accuracy,

Significant
the current position of market conditions and a future-looking As described in note 37, the Group operates with a single Nature, timing of satisfaction of performance obligations, and significant payment terms
revenue areas
assessment considering relevant geopolitical factors, including automotive reporting segment, principally generating revenue
Vehicles, parts, The Group recognises revenue on the sale of vehicles, parts and accessories at the point of “wholesale”, which is determined by
the impact of the global stock positions for both the Group and from the sales of vehicles, parts and accessories. and accessories the underlying terms and conditions of the contract with the customer as to when control transfers to them. The overall principle
its third party retailer network reflecting the pipeline of vehicle (and other of control under IFRS 15 considers which party has the ability to direct the use of an asset and to obtain substantially all of the
inventory for sale to end customers. The sale of vehicles also can include additional services provided goods) remaining economic benefits.
to the customer at the point of sale, for which the individual
Determining the transfer of control with regards to the sale of goods is driven by a consideration of a number of factors, including:
Uncertain tax provisions: Tax provisions are recognised for vehicle and services are accounted for as separate performance
uncertain tax positions where a risk of an additional tax obligations, as they are considered separately identifiable. The • The point at which the risks and rewards of ownership pass to the customer;
liability has been identified and it is probable that the Group contract transaction price is allocated among the identified • The point at which the customer takes physical possession of the good or product;
will be required to settle that tax. Measurement is dependent performance obligations based on their stand-alone selling • The point at which the customer accepts the good or product;
on management’s expectations of the outcome of decisions prices. Where the stand-alone selling price is not readily available • The point at which the Group has a present right to payment for the sale of the good or product; and
• The point at which legal title to the good or product transfers to the customer.
by tax authorities in the various tax jurisdictions in which the and observable, it is estimated using an appropriate alternative
Group operates. This is assessed on a case-by-case basis using approach. In the vast majority of cases, the sale of the relevant good is recognised at the point of dispatch (at release to the carrier
in-house experts, professional firms and previous experience. responsible for transportation to the customer) or the point of delivery to the customer, which coincides with the invoicing point.
Where no provision is required the exposure is disclosed as a
In some instances, revenue may be recognised on a bill-and-hold basis where vehicles, for example, are sold to the customer
contingent liability in note 33 unless the likelihood of an outflow but are retained in the Group’s possession at a vehicle holding compound on behalf of the customer ahead of being physically
of economic benefits is remote. transferred to them at a future time. Such arrangements meet the criteria for bill-and-hold arrangements under IFRS 15 to
ensure that the customer has obtained the ultimate control of the product when revenue is recognised.
No additional current tax risks were identified as a result of
The reason for the bill-and-hold is substantive (as the customer requests JLR to retain possession, usually due to a lack of
COVID-19, with the Group’s compliance activity continuing to be available space at their own premises), the vehicles are identifiable as separately belonging to the customer (on the basis that
operated in accordance with the applicable legislation. each vehicle has a unique Vehicle Identification Number), the vehicle must be ready for physical transfer to the customer (which
it is, given that it is fully built and safety-checked off the manufacturing line) and the Group does not have the ability to use the
Revenue recognition vehicle or direct it elsewhere.
The Group operates with financing partners across the world that provide wholesale financing arrangements to the retail
Revenue comprises the consideration earned by the Group in network for vehicle sales, which enables cash settlement to occur immediately (usually within two working days) for purchases
respect of the output of its ordinary activities. It is measured from the Group.
based on the consideration specified in the contract with the
For the sale of parts and accessories, the Group typically receives payment in line with the invoice payment terms stipulated and
customer and excludes amounts collected on behalf of third agreed with its customers, which are usually 30 days.
parties, and net of settlement discounts, bonuses, rebates and
Sales incentives In accordance with IFRS 15, the costs associated with providing sales support and incentives
sales incentives. The Group considers its primary customers (variable marketing expense) are considered to be variable components of consideration, thus
from the sale of vehicles, parts and accessories (its primary reducing the amount of revenue recognised by the Group. Under IFRS 15, the Group ensures that variable consideration is
revenue-generating streams) are generally retailers, fleet and recognised to the extent of the amount to which it ultimately expects to be entitled.
corporate customers, and other third-party distributors. The
To meet this principle, the Group constrains its estimate of variable consideration to include amounts only to the extent that it is
Group recognises revenue when it transfers control of a good highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty
or service to a customer, thus evidencing the satisfaction of the associated with such variability is subsequently resolved.
associated performance obligation under that contract.
The Group considers that the variable consideration received for contracts with multiple performance obligations is allocated
to all such obligations only when applicable. In the vast majority of instances, the Group considers that variable components of
consideration are allocated only to the relevant and applicable performance obligations. For example, with the sale of a vehicle,
the cost of the incentive provided is allocated entirely to the vehicle as its purpose is to incentivise the sale of the vehicle.
Scheduled Scheduled maintenance contracts sold with a vehicle provide the end customer with the benefit of bringing their vehicle to a
maintenance dealership for the routine maintenance required to maintain compliance for warranty purposes. These are considered a separate
contracts performance obligation of the Group.
The Group typically receives payment relating to the scheduled maintenance contract at the same time as the proceeds from
the vehicle sale, at which point the amount is recognised as a contract liability based on the stand-alone selling price, which is
measured using a cost-plus approach.
The Group recognises revenue for scheduled maintenance contracts based on the expected performance of the services over
the period from the point of a vehicle being retailed to an end customer and aligning to the expected costs to fulfil those services.

Significant foreign exchange relating to derivatives hedging cost exposures. the assets and liabilities of the Group’s foreign operations (non-
Nature, timing of satisfaction of performance obligations, and significant payment terms GBP functional currency) are translated at exchange rates
revenue areas
Government Grants and Incentives prevailing on the balance sheet date. Income and expense items
Telematics Telematics features provide a service to the customer typically aligned to the warranty period of the vehicle, allowing for the ability
to connect the vehicle with, and interact via, an end customer’s mobile phone. These are considered a separate performance
are translated at the average exchange rates for the period.
obligation of the Group. Government grants are recognised when there is reasonable Exchange differences arising, if any, are recognised in other
assurance that the Group will comply with the relevant conditions comprehensive income and accumulated in equity.
The Group typically receives payment relating to telematics features up-front at the same time as the proceeds from the vehicle and the grant will be received.
sale, at which point the amount is recognised as a contract liability based on the stand-alone selling price, which for optional
features is measured at the applicable purchase price and for standard-fit features is measured using a cost-plus basis.
Income taxes
Government grants are recognised in the consolidated income
The Group recognises revenue on a straight-line basis over the term of the service from the point of the vehicle being retailed to statement, either on a systematic basis when the Group Income tax expense comprises current and deferred taxes.
an end customer in line with the expected costs to fulfil those services. recognises, as expenses, the related costs that the grants are Income tax expense is recognised in the consolidated income
intended to compensate or, immediately, if the costs have statement, except when related to items that are recognised
Warranty Vehicles and parts sold by the Group include a standard warranty to guarantee the vehicle complies with agreed-upon already been incurred. outside of profit or loss (whether in other comprehensive income
considerations specifications for a defined period of time. Where the warranty offering to the end customer exceeds the standard market
as a service expectation for similar products, or is considered to provide a service to the end customer in excess of simply providing assurance
or directly in equity) or where related to the initial accounting for
that the agreed-upon specification is met, the Group consider the additional warranty to constitute a service to the end customer Government grants related to assets are deducted from the a business combination. In the case of a business combination,
and therefore a separate performance obligation. Revenue is only recognised in the period to which the warranty service relates, cost of the asset and amortised over the useful life of the asset. the tax effect is included in the accounting for the business
up to which point it is recognised as a contract liability. Government grants related to income are presented as an offset combination. Current income taxes are determined based on
Repurchase Some contracts with customers include an option or obligation for the Group to repurchase the against the related expenditure, and government grants that are respective taxable income of each taxable entity and tax rules
arrangements product sold (including repurchasing a product originally sold as part of an amended product). awarded as incentives with no ongoing performance obligations applicable for respective tax jurisdictions.
Such instances are common in the Group’s arrangements with third-party fleet customers or in
contract manufacturing arrangements that the Group is party to, for example.
to the Group are recognised as other income in the period in
which the grant is received. Deferred tax assets and liabilities are recognised for the future
The Group does not recognise revenue on the original sale, as in such cases it is considered to retain ultimate control of that tax consequences of temporary differences between the
product. The related inventory therefore continues to be recognised on the Group’s consolidated balance sheet and the Sales tax incentives received from governments are recognised carrying values of assets and liabilities and their respective
consideration received from the customer is treated as a liability. Nuances in the accounting treatment occur depending on
whether the contractual repurchase price is less than, more than or equal to the original sale price, and this ultimately results in
in the consolidated income statement at the reduced tax rate, tax bases, and unutilised business loss and depreciation carry-
the arrangement being treated as a lease or a financing arrangement. and revenue is reported net of these sales tax incentives. forwards and tax credits. Such deferred tax assets and liabilities
are computed separately for each taxable entity and for each
If considered to be a lease arrangement, where the repurchase price is lower than the original sale price, the difference between Foreign currency taxable jurisdiction. Deferred tax assets are recognised to the
the proceeds received and the repurchase amount is recognised as income over the contractual term on a straight-line basis.
Revenue recognised under such arrangements is outside of the scope of IFRS 15 and instead is recognised in line with IFRS 16
extent that it is probable that future taxable income will be
Leases. The Company has a functional currency of GBP. The presentation available against which the deductible temporary differences,
currency of the consolidated financial statements is GBP. unused tax losses, depreciation carry-forwards and unused tax
Revenue is recognised only when the relevant good or product is sold by the Group with no repurchase obligation or option Except where noted below, the directors of the Company have credits could be utilised.
attached.
determined that the functional currency of the UK and non- UK
selling operations is GBP, being the primary economic environment Deferred tax assets and liabilities are measured based on the tax
Returns Vehicle sales do not typically include allowances for returns or refunds, although in some markets there is legislative requirement
obligations, for Jaguar Land Rover as an automotive manufacturer to repurchase or reacquire a vehicle if quality issues arise that have been
that influences these operations. This is on the basis that the rates that are expected to apply in the year when the asset is
refunds and remedied a number of times and where the owner no longer wishes to own the vehicle as a result. directors assess control as being in the UK and that GBP is the realised or the liability is settled and on the tax rates and tax
similar currency that primarily determines sales prices and is the main laws that have been enacted or substantively enacted by the
obligations With regards to the sale of other goods, where rights of return may be prevalent, the Group estimates the level of returns currency for the retention of operating income. The functional balance sheet date.
based on the historical data for specific products, adjusted as necessary to estimate returns for new products. In line with the
requirements of IFRS 15, a sale is not recognised for expected returns, and instead the Group recognises a refund liability and
currency of Chery Jaguar Land Rover Automotive Company Ltd.,
asset where required. the Group’s principal joint venture, is Chinese Yuan (CNY). The Deferred tax assets and liabilities are offset when there is a
functional currency of Jaguar Land Rover Slovakia s.r.o, Jaguar legally enforceable right to set off current tax assets against
Non-cash In some instances, the Group engages in transactions that involve non-cash consideration, where a customer provides Land Rover Classic Deutschland GmbH and Jaguar Land Rover current tax liabilities and when they relate to income taxes levied
consideration consideration in a form other than cash. This is most often demonstrated in marketing and sponsorship arrangements that the Ireland (Services) Limited is Euro, the functional currency of by the same taxation authority and the Group intends to settle
Group enters into, with an exchange of goods and/or services with its customers. Jaguar Land Rover India is INR, the functional currency of Jaguar its current tax assets and liabilities on a net basis.
Such non-cash consideration is measured at its fair value, which is determined by assessing the selling price value of the goods
Land Rover Classic USA LLC is USD and the functional currency
or services received as consideration. If this cannot be reasonably estimated, then the Group measures such consideration of Jaguar Land Rover Hungary KFT is HUF. Exceptional items
indirectly with reference to the standalone selling price of the goods or services promised to the customer.
Transactions in foreign currencies are recorded at the exchange Exceptional items are disclosed separately in the consolidated
rate prevailing on the date of transaction. Foreign currency income statement and excluded from adjusted EBIT and adjusted
denominated monetary assets and liabilities are remeasured into EBITDA measures to enhance the reader’s understanding of
Cost recognition represent employee costs, stores and other manufacturing the functional currency at the exchange rate prevailing on the the performance of the Group by excluding items that would
supplies, and other expenses incurred for product development balance sheet date. Exchange differences are recognised in the otherwise distort reporting of the Group’s performance due to
Costs and expenses are recognised when incurred and are undertaken by the Group. consolidated income statement as “Foreign exchange (loss)/gain their size or nature.
classified according to their nature. and fair value adjustments”.
Expenditures are capitalised, where appropriate, in accordance Material and other cost of sales as reported in the consolidated The following are included in the Group’s assessment of
with the policy for internally generated intangible assets and income statement is presented net of the impact of realised For the purposes of presenting consolidated financial statements, exceptional items:

The amortisation for intangible assets with finite useful lives is future cash flows have not been adjusted.
• Restructuring costs of £29 million during the year ended 31 Property, plant and equipment reviewed at least at each year end. Changes in expected useful
March 2020 relating to the Group restructuring programme that lives are treated as changes in accounting estimates. If the recoverable amount of an asset (or cash-generating unit)
commenced during the year ended 31 March 2019; Property, plant and equipment is stated at cost of acquisition or is estimated to be less than its carrying amount, the carrying
construction less accumulated depreciation and accumulated Capital work-in-progress includes capital advances. Customer- amount of the asset (or cash-generating unit) is reduced to
• An impairment charge of £3,105 million for the year ended 31 impairment, if any. Land is not depreciated. related intangibles acquired in a business combination consist its recoverable amount. An impairment loss is recognised
March 2019 following an impairment exercise of retailer networks. Intellectual property rights and other immediately in the consolidated income statement.
undertaken in accordance with IAS 36; Cost includes purchase price, non-recoverable taxes and duties, intangibles mainly consist of brand names, which are considered
labour cost and direct overheads for self-constructed assets and to have indefinite lives due to the longevity of the brands. An annual review of the carrying value of heritage assets is
• Restructuring costs of £149 million relating to a Group-wide other direct costs incurred up to the date the asset is ready for performed as the assets are held at cost and not depreciated and
voluntary redundancy programme announced and carried out its intended use. Internally generated intangible assets any write-down in the carrying value is recognised immediately
during the year ended 31 March 2019; Research costs are charged to the consolidated income in the consolidated income
Interest cost incurred for constructed assets is capitalised up statement in the year in which they are incurred. statement.
• Past service costs and past service credits arising from to the date the asset is ready for its intended use, based on
amendments to the Group’s defined benefit pension plans; and borrowings incurred specifically for financing the asset or the Product engineering costs incurred on new vehicle platforms, Equity accounted investments: Joint ventures and associates
weighted average rate of all other borrowings, if no specific engines, transmission and new products are recognised as
• The impact of the explosion at the port of Tianjin (China) in borrowings have been incurred for the asset. intangible assets – when feasibility has been established, the The requirements of IAS 28 Investments in Associates and
August 2015, including reassessments of the provision against Group has committed technical, financial and other resources to Joint ventures are applied to determine whether it is necessary
the carrying value of inventory and recoveries of taxes, duties Depreciation is charged on a straight-line basis over the complete the development and it is probable that the asset will to recognise any impairment loss with respect to the Group’s
and insurance proceeds in subsequent years. estimated useful lives of the assets. Estimated useful lives of the generate future economic benefits. The costs capitalised include investment in a joint venture or an associate. When necessary,
assets are as follows: the cost of materials, direct labour and directly attributable the entire carrying amount of the investment (including goodwill)
Further details of exceptional items are given in note 4. overhead expenditure incurred up to the date the asset is available is tested for impairment in accordance with IAS 36 Impairment
for use. Interest cost incurred is capitalised up to the date the of assets as a single asset by comparing its recoverable amount
Class of property, plant and equipment Estimated useful life (years) asset is ready for its intended use, based on borrowings incurred (the higher of value in use and fair value less costs of disposal)
specifically for financing the asset or the weighted average rate of with its carrying amount. Any impairment loss recognised forms
Buildings 20 to 40 all other borrowings, if no specific borrowings have been incurred part of the carrying amount of the investment. Any reversal of
Plant, equipment and leased assets 3 to 30 for the asset. Product engineering cost is amortised over the life that impairment loss is recognised in accordance with IAS 36
Vehicles 3 to 10 of the related product, being a period of between two and ten to the extent that the recoverable amount of the investment
years. Capitalised development expenditure is measured at cost subsequently increases.
Computers 3 to 6
less accumulated amortisation and accumulated impairment
Fixtures and fittings 3 to 20 loss, if any. Amortisation is not recorded on product engineering Cash and cash equivalents
in progress until development is complete.
The depreciation for property, plant and equipment with finite Cash and cash equivalents comprise cash on hand, demand
useful lives is reviewed at least at each year end. Changes in Intangible Assets Impairment deposits and highly liquid investments with an original maturity
expected useful lives are treated as changes in accounting of up to three months that are readily convertible into known
estimates. Acquired intangible assets Property, plant and equipment and intangible assets amounts of cash and that are subject to an insignificant risk of
Intangible assets purchased, including those acquired in business At each balance sheet date, the Group assesses whether changes in value.
Assets held under finance leases are depreciated over their combinations, are measured at acquisition cost, which is the there is any indication that any property, plant and equipment
expected useful lives on the same basis as owned assets or, fair value on the date of acquisition, where applicable, less and intangible assets may be impaired. If any such impairment Inventories
where shorter, the term of the relevant lease. Freehold land is accumulated amortisation and accumulated impairment, if any. indicator exists, the recoverable amount of an asset is estimated
measured at cost and is not depreciated. Residual values are Intangible assets with indefinite lives are reviewed annually to to determine the extent of impairment, if any. Where it is not Inventories are valued at the lower of cost and net realisable
reassessed on an annual basis. determine whether an indefinite life assessment continues to be possible to estimate the recoverable amount of an individual value. Costs of raw materials and consumables are ascertained
supportable. If not, the change in the useful life assessment from asset, the Group estimates the recoverable amount of the cash on a first-in, first-out basis. Costs, including fixed and variable
Depreciation is not recorded on assets under construction until indefinite to finite is made on a prospective basis. For intangible generating unit to which the asset belongs. production overheads, are allocated to work-in-progress and
construction and installation are complete and the asset is ready assets with finite lives, amortisation is charged on a straight-line finished goods, determined on a full absorption cost basis. Net
for its intended use. Assets under construction include capital basis over the estimated useful lives of the acquired intangible Intangible assets with indefinite useful lives and intangible assets realisable value is the estimated selling price in the ordinary
advances. Depreciation is not recorded on heritage assets as the assets as per the estimated amortisation periods below: not yet available for use are tested for impairment annually, or course of business less estimated cost of completion and selling
Group considers their residual value to approximate their cost. earlier if there is an indication that the asset may be impaired. expenses.
Class of intangible asset Estimated amortisation period (years) The estimated recoverable amount is the higher of value in use Inventories include vehicles sold subject to repurchase
Software 2 to 8 and fair value less costs of disposal. In assessing value in use, arrangements. These vehicles are carried at cost to the Group
the estimated future cash flows are discounted to their present and are amortised in changes in stocks and work-in-progress to
Patents and technological know-how 2 to 12
value using a pre-tax discount rate that reflects current market their residual values (i.e. estimated second-hand sale value) over
Customer related – retailer network 20 assessments of the time value of money and the risks specific the term of the arrangement.
Intellectual property rights and other intangibles 3 to indefinite to the asset (or cash generating unit) for which the estimates of

Provisions Financial instruments solely payment of principal and interest. The Group reclassifies
• Current service cost, past service cost and gains and losses financial assets when and only when its business model for
A provision is recognised if, as a result of a past event, the on curtailments and settlements; Recognition and derecognition managing those assets changes.
Group has a present legal or constructive obligation that can be A financial instrument is any contract that gives rise to a financial
estimated reliably, and it is probable that an outflow of economic • Net interest cost; asset of one entity and a financial liability or equity instrument Financial assets are classified into three categories:
benefits will be required to settle the obligation. Provisions are of another entity. Financial instruments are recognised on
held for product warranty, legal and product liabilities, residual • Administrative expenses; and the balance sheet when the Group becomes a party to the Financial assets at amortised cost are non-derivative financial
risks, environmental liabilities, other employee benefit obligations contractual provisions of the instrument. assets with contractual cash flows that consist solely of payments
and restructuring as detailed in note 27 to the consolidated • Remeasurements. of principal and interest and which are held with the intention
financial statements. The Group derecognises a financial asset only when the of collecting those contractual cash flows. Subsequently, these
Remeasurement comprising actuarial gains and losses, the effect contractual rights to the cash flows from the asset expire or are measured at amortised cost using the effective interest
Supplier reimbursements are recognised as separate assets of the asset ceiling and the return on plan assets (excluding it transfers the financial asset and substantially all the risks method less impairment losses, if any. These include cash and
within “Other financial assets”. See note 16. interest) is recognised immediately in the consolidated balance and rewards of ownership of the asset to another entity. If the cash equivalents, contract assets, finance receivables and other
sheet with a charge or credit to the consolidated statement Group neither transfers nor retains substantially all the risks and financial assets.
Long-Term Incentive Plan (“ LTIP” ) of comprehensive income in the period in which they occur. rewards of ownership and continues to control the transferred
Remeasurement recorded in the statement of comprehensive asset, the Group recognises its retained interest in the asset and Financial assets at fair value through other comprehensive
The Group operated a share-based payment LTIP arrangement income is not recycled. an associated liability for amounts it may have to pay. If the Group income are non-derivative financial assets with contractual cash
for certain employees. The scheme provides a cash payment to retains substantially all the risks and rewards of ownership of a flows that consist solely of payments of principal and interest and
the employee based on a specific number of phantom shares Past service cost, including curtailment gains and losses, transferred financial asset, the Group continues to recognise the which are held with the intention of collecting those contractual
at grant date and the share price of Tata Motors Limited at the is generally recognised in profit or loss in the period of plan financial asset and also recognises a collateralised borrowing for cash flows as well as to sell the financial asset. Subsequently,
vesting date, subject to profitability and employment conditions. amendment. Net interest is calculated by applying the discount the proceeds received. Any gain or loss arising on derecognition these are measured at fair value, with unrealised gains or losses
These are accounted for as cash-settled arrangements, whereby rate at the beginning of the period to the net defined benefit is recognised in profit or loss. When a financial instrument is being recognised in other comprehensive income apart from
a liability is recognised at fair value at the date of grant, using liability, adjusted for expected cashflows during the period. From derecognised, the cumulative gain or loss in equity (if any) is any expected credit losses or foreign exchange gains or losses,
the Black-Scholes model. At each balance sheet date, until the FY20, at the point a past service cost is incurred re-measurement transferred to the consolidated income statement unless it was which are recognised in profit or loss. This category can also
liability is settled, the fair value of the liability is remeasured, of the P&L cost is considered and will be re-calculated if there is an equity instrument electively held at fair value through other include financial assets that are equity instruments which have
with any corresponding changes in fair value recognised in the a material change. comprehensive income. In this case, any cumulative gain or loss been irrevocably designated at initial recognition as fair value
consolidated income statement. in equity is transferred to retained earnings. through other comprehensive income. For these assets, there is
The Group presents these defined benefit costs within “Employee no expected credit loss recognised in profit or loss.
Employee benefits costs” in the consolidated income statement (see note 7). Financial assets are written off when there is no reasonable
Separate defined contribution plans are available to all other expectation of recovery. The Group reviews the facts and Financial assets at fair value through profit or loss are financial
Pension schemes employees of the Group. Costs in respect of these plans are circumstances around each asset before making a determination. assets with contractual cash flows that do not consist solely
The Group operates several defined benefit (‘DB’) pension plans; charged to the consolidated income statement as incurred. Financial assets that are written off could still be subject to of payments of principal and interest. This category includes
these include two large and one smaller defined benefit plan enforcement activities. derivatives, embedded derivatives separated from the host
in the UK. The UK DB plans are administered by a separate Post-retirement Medicare scheme contract and investments in certain convertible loan notes.
trustee, the assets of the plans are generally held in separate Under these unfunded schemes, employees of some subsidiaries Financial liabilities are derecognised when they are extinguished, Subsequently, these are measured at fair value, with unrealised
funds selected and overseen by the trustee. These plans were receive medical benefits subject to certain limits of amount, that is when the obligation is discharged, cancelled or has expired. gains or losses being recognised in profit or loss, with the
contracted out of the state second pension (S2P) scheme until periods after retirement and types of benefits, depending on exception of derivative instruments designated in a hedging
5 April 2016. The plans provide benefits for members including a their grade and location at the time of retirement. Employees Initial measurement relationship, for which hedge accounting is applied.
monthly pension after retirement based on salary and service as separated from the Group as part of an early separation scheme, Initially, a financial instrument is recognised at its fair value.
set out in the rules of each plan. on medical grounds or due to permanent disablement, may Transaction costs directly attributable to the acquisition or Classification and measurement – financial liabilities
also be covered under the scheme. The applicable subsidiaries issue of financial instruments are recognised in determining the Financial liabilities are classified as subsequently measured
Contributions to the plans by the Group take into consideration (and therefore, the Group) account for the liability for the carrying amount, if it is not classified as at fair value through at amortised cost unless they meet the specific criteria to be
the results of actuarial valuations. post-retirement medical scheme based on an annual actuarial profit or loss. Transaction costs of financial instruments carried recognised at fair value through profit or loss.
valuation where appropriate. at fair value through profit or loss are expensed in profit or loss.
The UK defined benefit plans were closed to new joiners in Other financial liabilities are measured at amortised cost using
April 2010. The Group also operate a number of small benefit Actuarial gains and losses Subsequently, financial instruments are measured according to the effective interest method.
arrangements worldwide (the liabilities for these amount to Actuarial gains and losses relating to retirement benefit plans the category in which they are classified.
around 0.5% of the Group total), these schemes are included in are recognised in the consolidated statement of comprehensive Financial liabilities at fair value through profit or loss include
the disclosures below. income in the year in which they arise. Classification and measurement – financial assets derivatives and embedded derivatives separated from the
Classification of financial assets is based on the business model host contract as well as financial liabilities held for trading.
For defined benefit plans, the cost of providing benefits is Measurement date in which the instruments are held as well as the characteristics Subsequent to initial recognition, these are measured at fair value
determined using the projected unit credit method, with actuarial The measurement date of all retirement plans is 31 March. of their contractual cash flows. The business model is based with gains or losses being recognised in profit or loss. Embedded
updates being carried out at the end of each reporting period. on management’s intentions and past pattern of transactions. derivatives relating to prepayment options on senior notes are
Financial assets with embedded derivatives are considered in not considered as closely related and are separately accounted
Defined benefit costs are split into four categories: their entirety when determining whether their cash flows are unless the exercise price of these options is approximately equal

on each exercise date to either the amortised cost of the senior characteristics into account when pricing the asset or liability risks, of the borrowings designated as the hedged item. predetermines how and for what purposes it will be
notes or the present value of the lost interest for the remaining at the measurement date. Subsequent to initial recognition, the used.
term of the senior notes. Group determines the fair value of financial instruments that are Hedge accounting is discontinued when the hedging instrument
quoted in active markets using the quoted bid prices (financial expires or is sold, terminated, exercised or no longer qualifies At inception or on reassessment of a contract that contains a
Impairment assets held) or quoted ask prices (financial liabilities held) and for hedge accounting. Amounts accumulated in equity are lease component, the Group allocates the consideration in the
The Group recognises a loss allowance in profit or loss for using valuation techniques for other instruments. Valuation reclassified to the consolidated income statement in the periods contract to each lease component on the basis of their relative
expected credit losses on financial assets held at amortised cost techniques include the discounted cash flow method and other in which the forecast transactions affect profit or loss or as an stand-alone prices.
or at fair value through other comprehensive income. Expected valuation models. adjustment to a non-financial item (e.g. inventory) when that
credit losses are forward looking and are measured in a way that item is recognised on the balance sheet. These deferred amounts The Group recognises a right-of-use asset and a lease liability at
is unbiased and represents a probability-weighted amount, takes Hedge accounting are ultimately recognised in profit or loss as the hedged item the lease commencement date. The right-of-use asset is initially
into account the time value of money (values are discounted The Group uses foreign currency forward contracts, foreign affects profit or loss (for example through cost of goods sold). measured at cost, which comprises of the initial amount of the
using the applicable effective interest rate) and uses reasonable currency options and borrowings denominated in foreign lease liability adjusted for any lease payments made at or before
and supportable information. currency to hedge its risks associated with foreign currency If the forecast transaction is no longer expected to occur, the the commencement date, plus any initial direct costs incurred
fluctuations relating to highly probable forecast transactions. net cumulative gain or loss in equity, including deferred costs and an estimate of costs to dismantle and remove the underlying
Lifetime expected credit losses are calculated for assets that The Group designates these foreign currency forward contracts, of hedging, is immediately transferred and recognised in the asset or to restore the underlying asset or the site on which it
were deemed credit impaired at initial recognition or have foreign currency options and borrowings denominated in foreign consolidated income statement. is allocated, less any lease incentives received. The right-of-use
subsequently become credit impaired as well as those where currency in a cash flow hedging relationship by applying hedge asset is subsequently depreciated using the straight-line method
credit risk has increased significantly since initial recognition. accounting principles under IFRS 9. Accounting policies applied until 31 March 2018 over the term of the lease.
The Group has applied IFRS 9 from 1 April 2018. The Group has
The Group adopts the simplified approach permitted in IFRS 9 The Group uses cross-currency interest rate swaps to convert noted that there is no material impact on the financial statements The lease liability is initially measured at the present value of
to apply lifetime expected credit losses to trade receivables and some of its foreign currency denominated fixed-rate borrowings for the classification and measurement of financial instruments. the lease payments that are not paid at commencement date,
contract assets. Where credit risk is deemed low at the reporting to GBP floating-rate borrowings. Hedge accounting is applied As a result, the comparative information provided as at and for discounted using the interest rate implicit in the lease or, if that
date or to have not increased significantly, credit losses for the using both fair value and cash flow hedging relationships. The the year ended 31 March 2018 continues to be accounted for rate cannot be readily determined, the Group’s incremental
next 12 months are calculated. designated risks are foreign currency and interest rate risks. in accordance with the Group’s previous accounting policy for borrowing rate. Generally, the Group uses its incremental
classification and measurement of financial instruments. borrowing rate as a discount rate. The lease liability is measured
Credit risk has increased significantly when the probability of Derivative contracts are stated at fair value on the consolidated at amortised cost using the effective interest method. It is re
default has increased significantly. Such increases are relative balance sheet at each reporting date. Leases measured when there is a change in future lease payments.
and assessment may include external ratings (where available) The Group has elected not to recognise right-of-use assets and
or other information such as past due payments. Historic data At inception of the hedge relationship, the Group documents At inception of a contract, the Group assesses whether a lease liabilities for short-term leases that have a lease term of
and forward-looking information are both considered. Objective the economic relationship between the hedging instrument and contract is, or contain a lease. A contract is, or contains, a lease if 12 months or less and leases of low value assets. The Group
evidence for a significant increase in credit risk may include the hedged item, including whether changes in the cash flows the contract conveys the right to control the use of an identified associates the lease payments associated with these leases as
where payment is overdue by 90 or more days as well as other of the hedging instrument are expected to offset changes in the asset for a period of time in exchange for consideration. To assess an expense on a straight line basis over the lease term.
information about significant financial difficulties of the borrower. cash flows of the hedged item. The Group documents its risk whether a contract conveys the right to control the use of an
management objective and strategy for undertaking its hedging identified asset, the Group assesses whether: The comparative information for the years ending 31 March 2019
Equity instruments transactions. The Group designates only the intrinsic value of and 31 March 2018 is accounted for under Group’s previous
An equity instrument is any contract that evidences residual foreign exchange options in the hedging relationship. The Group • The contract involves the use of an identified asset – this lease accounting policies in accordance with IAS 17 Leases. The
interests in the assets of the Group after deducting all of its designates amounts excluding foreign currency basis spread may be specified explicitly or implicitly, and should be related policies are set out below.
liabilities. Equity instruments issued by the Group are recorded in the hedging relationship for both foreign exchange forward physically distinct or represent substantially all of the
at the proceeds received, net of direct issue costs. contracts and cross-currency interest rate swaps. Changes in capacity of a physically distinct asset. If the supplier has a At the inception of a lease, the lease arrangement is classified
the fair value of the derivative contracts that are designated and substantive substation right, then the asset is not identified; as either a finance lease or an operating lease, based on the
Investments in equity instruments are measured at fair value; effective as hedges of future cash flows are recognised in the • The Group has the right to substantially all of the economic contractual terms and substance of the lease arrangement.
however, where a quoted market price in an active market is not cash flow hedge reserve within other comprehensive income (net benefits from the use of the asset throughout the period of
available, equity instruments are measured at cost (investments of tax), and any ineffective portion is recognised immediately in use; and Assets taken on finance lease
in equity instruments that are not held for trading). The Group the consolidated income statement. A finance lease is recognised as an asset and a liability at the
has not elected to account for these investments at fair value • The Group has the right to direct the use of the asset. commencement of the lease, at the lower of the fair value of the
through other comprehensive income. Changes in both the time value of foreign exchange options The Group has this right when it has the decision making asset and the present value of the minimum lease payments.
and foreign currency basis spread of foreign exchange forwards rights that are most relevant to changing how and for Initial direct costs, if any, are also capitalised and, subsequent to
Determination of fair value and cross-currency interest rate swaps are recognised in other what purposes the asset is used. In rare cases where the initial recognition, the asset is accounted for in accordance with
Fair value is the price that would be received to sell an asset comprehensive income (net of tax) in the cost of hedging reserve decision about how and for what purpose the asset is used the accounting policy applicable to that asset. Minimum lease
or paid to transfer a liability in an orderly transaction between to the extent that they relate to the hedged item (the “aligned” is predetermined, the Group has the right to direct the use payments made under finance leases are apportioned between
market participants at the measurement date, regardless of value). of the asset if either: the finance expense and the reduction of the outstanding liability.
whether that price is directly observable or estimated using The finance expense is allocated to each year during the lease
another valuation technique. In estimating the fair value of an Changes in the fair value of contracts that are designated in a fair • The Group has the right to operate the asset; or term so as to produce a constant periodic rate of interest on the
asset or liability, the Group takes into account the characteristics value hedge are taken to the consolidated income statement. remaining balance of the liability.
of the asset or liability if market participants would take those They offset the change in fair value, attributable to the hedged • The Group designed the asset in a way that

Assets taken on operating lease equity as at 1 April 2019. The details of the changes in accounting The opening right-of-use asset by class of underlying assets is • Amendments to references to the conceptual framework in
Leases other than finance leases are operating leases, and the policies are disclosed below. disclosed in Note 36. IFRS standards.
leased assets are not recognised on the Group’s consolidated
balance sheet. Payments made under operating leases are The Company has elected to use the following practical (b) Standards, revisions and amendments to standards and The Group is currently assessing the impact of these
recognised in the consolidated income statement on a straight- expedients at transition permitted by the Standard: interpretations not significant to the Jaguar Land Rover Group pronouncements on the consolidated financial statements.
line basis over the term of the lease in “Other expenses”. and applied for the first time in the year ending 31 March 2020
• On initial application, IFRS 16 has only been applied to (d) Standards, revisions and amendments to standards and
New accounting policy pronouncements contracts that were previously classified as leases under The following amendments and interpretations have been interpretations not yet endorsed by the EU and not yet adopted
IFRIC 4; adopted by the Group in the year ending 31 March 2020. by the Group
(a) Standards, revisions and amendments to standards and
interpretations significant to the Jaguar Land Rover Group and • Regardless of the original lease term, lease arrangements • IFRIC 23 Uncertainty over income tax treatments; The following pronouncements, issued by the IASB, have not yet
applied for the first time in the fiscal year ending 31 March with a remaining duration of less than 12 months will • Amendments to IFRS 9 Financial Instruments – Prepayment been endorsed by the EU, are not yet effective and have not yet
2020 continue to be expensed to the Income Statement on a features with negative compensation; been adopted by the Group.
straight line basis over the lease term; • Amendments to IAS 19 Employee Benefits – Plan
IFRS 16 Leases is effective for the year beginning 1 April 2019 • Short-term and low value leases will be exempt; amendment, curtailment or settlement; • IFRS 17 Insurance Contracts;
for the Group. This standard replaces IAS 17 Leases, IFRIC 4 • Amendments to IAS 28 Investments in Associates and • Amendments to IAS 1 Presentation of Financial Statements
determining whether an arrangement contains a lease, SIC • The lease term has been determined with the use of Joint Ventures – Long-term interests in associates and joint – Classification of liabilities as current or non-current;
15 Operating Leases – incentives and SIC 27 evaluating the hindsight where the contract contains options to extend or ventures; and • Amendments to IFRS 3 Business Combinations – Reference
Substance of the transactions involving the legal form of a terminate the lease; • Annual improvements to IFRS standards 2015-2017 cycle. to the conceptual framework;
lease interpretations. Under IFRS 16, lessee accounting is • Amendments to IAS 16 Property, Plant and Equipment –
based on a single model, resulting from the elimination of the • The discount rate applied as at transition date is the The adoption of these amendments and interpretations has Proceeds before intended use;
distinction between operating and finance leases. All leases will incremental borrowing rate corresponding to the remaining not had a significant impact on the consolidated financial • Amendments to IAS 37 Provisions, Contingent Liabilities and
be recognised on the balance sheet with a right-of-use asset lease term; statements. Contingent Assets – Onerous contracts - cost of fulfilling a
capitalised and depreciated over the estimated lease term contract;
together with a corresponding liability that will reduce over the • The measurement of a right-of-use asset excludes the initial (c) Standards, revisions and amendments to standards and • Amendments to IFRS 16 Leases – COVID-19-related rent
same period with an appropriate interest charge recognised. direct costs at the date of initial application. interpretations not yet effective and not yet adopted by the concessions; and
Group • Annual improvements to IFRS standards 2018-2020 cycle.
The Group has elected to apply the exemptions for leases with The impact of the first-time application of IFRS 16 as at 1 April
a lease term of 12 months or less (short-term leases) and for 2019 is the recognition of right-of-use assets of £548 million The following pronouncements, issued by the IASB and endorsed The Group is currently assessing the impact of these
leases for which the underlying asset is of low value. The lease and lease liabilities of £499 million. In addition, £27 million has by the EU, are not yet effective and have not yet been adopted by pronouncements on the consolidated financial statements.
payments associated with those leases are recognised as an been reclassified from property, plant and equipment to right- the Group. These amendments are effective for annual reporting
expense on a straight-line basis over the lease term or another of-use assets in respect of assets previously held under finance periods beginning on or after 1 January 2020. 3 Alternative Performance Measures
systematic basis. leases. As at the date of initial application, there is a £23 million
reduction in net assets (net of tax). • Amendments to IFRS 9 Financial Instruments, IAS 39 In reporting financial information, the Group presents alternative
The Group is applying the modified retrospective approach on Financial Instruments: Recognition and Measurement and performance measures (“APMs”) that are not defined or specified
transition under which the comparative financial statements When measuring lease liability, the Group discounted lease IFRS 7 Financial Instruments: Disclosures – Interest rate under the requirements of IFRS. The Group believes that these
will not be restated. The cumulative impact of the first-time payments using its incremental borrowing rate at 1 April 2019. benchmark reform; APMs, which are not considered to be a substitute for or superior
application of IFRS 16 is recognised as an adjustment to opening The weighted-average rate applied is 7.9%. • Amendments to IFRS 3 Business Combinations – Definition to IFRS measures, provide stakeholders with additional helpful
of a business; information on the performance of the business.
• Amendments to IAS 1 Presentation of Financial Statements
(£ millions) and IAS 8 Accounting Policies, Changes in Accounting The APMs used within this Annual Report are defined below.
Estimates and Errors – Definition of material; and
Financial obligations for operating leases at 31 March 2019 626
Application exemption for short-term leases (9)
Application exemption for leases of low-value assets (14) Alternative performance
Definition
Future lease commitments - contracts signed on or before 31 March 2019 (28) measure
Extension and termination options reasonably certain to be exercised 288 Adjusted EBITDA Adjusted EBITDA is defined as profit before income tax expense, exceptional items, finance expense (net
of capitalised interest), finance income, gains/losses on unrealised derivatives and debt, gains/losses on
Variable lease payments based on an index or a rate -
realised derivatives entered into for the purpose of hedging debt, unrealised fair value gains/losses on equity
Gross lease liabilities for former operating leases at 1 April 2019 863 investments, share of profit/loss from equity accounted investments, depreciation and amortisation.
Discounting impact (364) Adjusted EBIT Adjusted EBIT is defined as for adjusted EBITDA but including share of profit/loss from equity accounted
Lease liabilities for former operating leases at 1 April 2019 499 investments, depreciation and amortisation.
Present value of finance lease liabilities as 31 March 2019 31 Loss/profit before tax and Loss/profit before tax excluding exceptional items.
exceptional items
Total lease liabilities at 1 April 2019 530

Adjusted EBIT and Adjusted EBITDA

Alternative performance
Definition
measure
Free cash flow Net cash generated from operating activities less net cash used in investing activities (excluding movements Year ended 31 March (£ millions) Note 2020 2019 2018
in short-term deposits) and after finance expenses and fees paid. Free cash flow also includes foreign Adjusted EBITDA 2,000 1,981 2,794
exchange gains/losses on short-term deposits and cash and cash equivalents. Depreciation and amortisation (1,910) (2,164) (2,075)
Share of (loss)/profit of equity accounted investments 15 (114) 3 252
Total product and other investment Cash used in the purchase of property, plant and equipment, intangible assets, investments in equity
Adjusted EBIT (24) (180) 971
accounted investments and other trading investments, acquisition of subsidiaries and expensed research
and development costs. Foreign exchange gain/(loss) on derivatives 13 15 (31) 74
Unrealised loss on commodities 13 (78) (34) (2)
Operating cash flow before Free cash flow before financing excluding total product and other investment. Foreign exchange (loss)/gain and fair value adjustments on loans 13 (135) (45) 69
investment Foreign exchange gain/(loss) on economic hedges of loans 13 29 (18) 11
Working capital Changes in assets and liabilities as presented in note 38. This comprises movements in assets and liabilities Finance income 12 52 35 33
excluding movements relating to financing or investing cash flows or non-cash items that are not included in Finance expense (net) 12 (209) (111) (85)
adjusted EBIT or adjusted EBITDA. Fair value (loss)/gain on equity investment 13 (43) 26 3
(Loss)/profit before tax and exceptional items (393) (358) 1,074
Total cash and cash equivalents, Defined as cash and cash equivalents, short-term deposits and other investments, marketable securities Exceptional items 4 (29) (3,271) 438
deposits and investments and any other items defined as cash and cash equivalents in accordance with IFRS. (Loss)/profit before tax (422) (3,629) 1,512
Available liquidity Defined as total cash and cash equivalents, deposits and investments plus committed undrawn credit Retail and wholesales
facilities.
Units 2020 2019 2018
Retail sales Jaguar Land Rover retail sales represent vehicle sales made by retailers to end customers and include the
sale of vehicles produced by our Chinese joint venture, Chery Jaguar Land Rover Automotive Company Ltd. Retail sales 508,659 578,915 614,309
Wholesales 475,952 507,895 545,298
Wholesales Wholesales represent vehicle sales made to retailers or other external customers. The Group recognises Free cash flow
revenue on wholesales.
Year ended 31 March (£ millions) Note 2020 2019 2018

restated* restated*
The Group uses adjusted EBITDA as an APM to review and Operating cash flow before investment is used as a measure Net cash generated from operating activities 2,314 2,253 2,958
measure the underlying profitability of the Group on an ongoing of the operating performance and cash available to the Group Net cash used in investing activities (3,177) (2,278) (3,222)
basis for comparability as it recognises that increased capital before the direct cash impact of investment decisions. Net cash used in operating and investing activities (863) (25) (264)
expenditure year on year will lead to a corresponding increase Finance expenses and fees paid (262) (210) (158)
in depreciation and amortisation expense recognised within the Working capital is considered by the Group to be a key measure Adjustments for:
consolidated income statement. in assessing short-term assets and liabilities that are expected to
Movements in short-term deposits 351 (1,074) (523)
be converted into cash within the next 12-month period.
Foreign exchange gain/(loss) on short-term deposits 38 14 71 (55)
The Group uses adjusted EBIT as an APM to review and measure
Foreign exchange gain/(loss) on cash and cash equivalents 58 (27) (41)
the underlying profitability of the Group on an ongoing basis Total cash and cash equivalents, deposits and investments and
Free cash flow (702) (1,265) (1,041)
as this excludes volatility on unrealised foreign exchange available liquidity are measures used by the Group to assess
transactions. Due to the significant level of debt and currency liquidity and the availability of funds for future spend and *Comparative information has been restated for the change in definition explained on the previous page.
derivatives held, unrealised foreign exchange can distort the investment. Total product and other investment
financial performance of the Group from one period to another.
Exceptional items are defined in note 4. Year ended 31 March (£ millions) Note 2020 2019 2018
Free cash flow is considered by the Group to be a key measure in Purchases of property, plant and equipment 1,281 1,590 2,135
assessing and understanding the total operating performance of Adjusted EBIT, adjusted EBITDA and Free cash flow have been Net cash outflow relating to intangible asset expenditure 1,511 1,785 1,614
the Group and to identify underlying trends. impacted by the adoption of IFRS 16 in the year ended 31 March Research and development expensed 11 421 421 406
2020. The corresponding measures for the years ended 31 March Investment in equity accounted investees 67 - -
During the year ended 31 March 2020, the definition of ‘Free 2019 and 2018 are presented on an IAS 17 basis. The application
Purchases of other investments 11 14 25
cash flow’ was amended to exclude capital payments in relation of IFRS 16 has improved adjusted EBIT, adjusted EBITDA and Free Acquisition of subsidiary 3 - 6
to lease obligations. Following the adoption of IFRS 16, the Group cash flow compared to these measures prepared under IAS 17. Total product and other investment 3,294 3,810 4,186
considers that the amended APM better reflects the cash that
is freely available for the Group by excluding committed debt Reconciliations between these alternative performance
payments. Free cash flow for the year ended 31 March 2019 measures and statutory reported measures are shown on the Total cash and cash equivalents, deposits and investments
prior to the change was £(1,267) million, and for the year ended next pages. As at (£ millions) 2020 2019 2018
31 March 2018 was £(1,045) million.
Cash and cash equivalents 2,271 2,747 2,626
Short-term deposits and other investments 1,393 1,028 2,031
Total cash and cash equivalents, deposits and investments 3,664 3,775 4,657

Available liquidity 5 Revenue
As at 31 March (£ millions) Note 2020 2019 2018 The Group’s revenues are summarised as follows:
Cash and cash equivalents 2,271 2,747 2,626
Year ended 31 March (£ millions) 2020 2019 2018
Short-term deposits and other investments 1,393 1,028 2,031
Revenue recognised for sales of vehicles, parts and accessories 22,436 23,885 25,985
Committed undrawn credit facilities 25 1,935 1,935 1,935
Revenue recognised for services transferred 306 249 168
Available liquidity 5,599 5,710 6,592
Revenue - other 807 950 1,022
Total revenue excluding realised revenue hedges 23,549 25,084 27,175
Realised revenue hedges (565) (870) (1,389)
4 Exceptional items inequalities within guaranteed minimum pension (“GMP”) Total revenue 22,984 24,214 25,786
earned between 17 May 1990 and 5 April 1997. The Group
The exceptional item recognised in the year ended 31 March historically made no allowance for GMP and therefore “Revenue – other” includes sales of goods other than vehicles, Revenue disaggregation
2020 comprises restructuring costs of £29 million relating to considered the change to be a plan amendment. Further parts and accessories as well as revenue recognised outside the
the Group restructuring programme that commenced during the details are given in note 32. scope of IFRS 15, primarily being lease instalments recognised The following table presents the Group’s revenue, disaggregated
year ended 31 March 2019. This included a past service pension from assets sold with a repurchase commitment. by primary geographical market, timing of revenue recognition
cost of £4 million. The exceptional items recognised in the year ended 31 March and major product categories. All revenue is generated from the
2018 comprise: Group’s single automotive operating segment.
The exceptional items recognised in the year ended 31 March
2019 comprise: • £1 million of import duties recovered in relation to vehicles
Year ended 31 March 2020 (£ millions) UK US China Rest of Rest of Total
damaged in the Tianjin explosion; and Europe World Revenue
• An impairment charge of £3,105 million for the year Revenue recognised for sales of vehicles, parts and accessories 3,875 5,889 3,374 4,745 4,553 22,436
ended 31 March 2019 following an impairment exercise • A past service credit of £437 million following an amendment Revenue recognised for services transferred 63 91 75 11 66 306
undertaken in accordance with IAS 36. Further details are to the defined benefit pension schemes’ rules that, among Revenue - other 786 4 5 1 11 807
given in note 18; other changes, meant that future retirement benefits would Total revenue excluding realised revenue hedges 4,724 5,984 3,454 4,757 4,630 23,549
be calculated each year and revalued until retirement in line Realised revenue hedges - (370) (166) - (29) (565)
• Restructuring costs of £149 million relating to a Group with a prescribed rate rather than based upon a member’s Total revenue 4,724 5,614 3,288 4,757 4,601 22,984
restructuring programme announced and carried out during final salary at retirement. Further details are given in note Rest of Rest of Total
Year ended 31 March 2019 (£ millions) UK US China Europe World Revenue
the year ended 31 March 2019, this included a past service 32.
pension cost of £25m; and Revenue recognised for sales of vehicles, parts and accessories 4,293 5,826 3,557 5,359 4,850 23,885
The tables below set out the exceptional items recorded in the Revenue recognised for services transferred 23 67 97 8 54 249
• A past service cost of £17 million following a High Court years ended 31 March 2020, 2019 and 2018 and the impact Revenue - other 912 29 10 (12) 11 950
ruling in October 2018 that pension schemes are required on the consolidated income statement if these items were not Total revenue from contracts with customers 5,228 5,922 3,664 5,355 4,915 25,084
to equalise male and female members’ benefits for the disclosed separately as exceptional items. Realised revenue hedges - (437) (352) - (81) (870)
Total revenue 5,228 5,485 3,312 5,355 4,834 24,214
Year ended 31 March 2020 (£ millions) Note Other expenses Employee costs
Contract liabilities
Excluding exceptional items 5,238 2,568
Restructuring costs 27 (3) 32 Year ended 31 March (£ millions) 2020 2019
Including exceptional items 5,235 2,600 Ongoing service obligations 846 805
Liabilities for advances received 50 86
Year ended 31 March 2019 (£ millions) Note Other expenses Employee costs
Total contract liabilities 896 891
Excluding exceptional items 5,567 2,820
Impairment 17,18 3,105 -
Revenue that is expected to be recognised within five years
Restructuring costs 5 144 related to performance obligations that are unsatisfied (or The Group applies the practical expedient in IFRS 15.121 and
Pension past service cost 32 - 17 partially unsatisfied) amounted to £896 million at 31 March does not disclose information about remaining performance
Including exceptional items 8,677 2,981 2020. obligations that have an original expected duration of one year
or less. This is because revenue resulting from those sales will be
Year ended 31 March 2018 (£ millions) Note Material and other Employee costs
cost of sales “Ongoing service obligations” mainly relate to long-term recognised in a short-term period. The services included with the
Excluding exceptional items 16,328 2,722 service and maintenance contracts, extended warranties and vehicle sale are to be recognised as revenues in subsequent years
Pension past service credit 32 - (437) telematics services. “Liabilities for advances received” primarily but represent an insignificant portion of expected revenues in
relate to consideration received in advance from customers for comparison.
Tianjin (1) -
products not yet wholesaled, at which point the revenue will
Including exceptional items 16,327 2,285
be recognised. “Ongoing service obligations” and “Liabilities for The movement in contract liabilities relates solely to revenue
Included in “Income tax (expense)/credit” in the consolidated in respect of exceptional items of £6 million (2019: credit of advances received” are both presented within “Other liabilities” recognised from balances held at the beginning of the year of
income statement for the year ended 31 March 2020 is a credit £278 million 2018: charge of £78 million). in the consolidated balance sheet. £392 million and increases due to cash received for performance

6 Material and other cost of sales 8 Directors’ emoluments
Year ended 31 March (£ millions) 2020 2019 2018 Year ended 31 March (£) 2020 2019 2018
Changes in inventories of finished goods and work-in-progress 121 188 (327) Directors' emoluments 3,459,163 3,187,356 3,825,382
Purchase of products for sale 1,105 1,181 1,237 Increase/(decrease) of long-term incentive scheme amounts receivable 803,472 (98,010) (14,128)
Raw materials and consumables used 13,498 14,448 15,600 Post-employment benefits 349,442 520,763 393,673
Realised purchase hedges (40) (147) (182)
Total material and other cost of sales 14,684 15,670 16,328
The aggregate of emoluments received in the year and amounts There were no directors who were members of a defined benefit
accrued under the long-term incentive plan (“LTIP”) of the pension scheme or a defined contribution scheme during the
highest-paid director was £4,099,544 (2019: £2,946,676, 2018: years ended 31 March 2020, 2019 and 2018.
7 Employee numbers and costs £3,709,532), together with a cash allowance in lieu of pension
benefits of £349,442 (2019: £520,763, 2018: £393,673). LTIP cash payments received by directors during the year ended
During the year, the value of LTIP awards accrued has increased 31 March 2020 were £nil (2019: £623,090, 2018: £nil).
Year ended 31 March (£ millions) 2020 2019 2018 by £803,472 (2019: decrease of £98,010, 2018: decrease of
£14,128), which will become payable in future periods.
Wages and salaries - employee costs 1,833 1,909 1,798
Wages and salaries - agency costs 175 286 270
Total wages and salaries 2,008 2,195 2,068
Social security costs and benefits 312 354 328
Pension costs 248 271 326
Total employee costs 2,568 2,820 2,722
Average employee numbers for the year ended 31 March

Non-agency Agency Total
2020
Manufacturing 18,833 1,219 20,052
Research and development 7,965 1,411 9,376
Other 9,733 626 10,359
Total employee numbers 36,531 3,256 39,787

2019
Manufacturing 19,213 1,998 21,211
Other 11,063 1,106 12,169

2018
Manufacturing 18,628 2,909 21,537
Other 8,689 1,411 10,100

9 Long-Term Incentive Plan (“LTIP”) 10 Other expenses
During the year ended 31 March 2016, the Group issued the final share-based payment LTIP arrangement based on the share price
of Tata Motors Limited. The final cash payment in respect of the share-based payment LTIP was made during the year ended 31 Year ended 31 March (£ millions) Note 2020 2019 2018
March 2019.
Stores, spare parts and tools 112 193 177
During the year ended 31 March 2017, the Group announced a new LTIP to replace the previous share-based payment LTIP. The new Freight cost 611 653 1,037
LTIP, effective from June 2016, provides a cash payment to certain employees based on the Group’s performance against long-term Works, operations and other costs 2,471 2,577 2,676
business metrics related to performance and strategic priorities (over a period of three years). This new LTIP benefit scheme has been Repairs 38 38 48
accounted for in accordance with IAS 19 Employee Benefits.
Power and fuel 87 101 81
Rent, rates and other taxes 32 90 87
Comparative information
Insurance 23 25 27
The information in this section gives details of the previous share-based payment LTIP arrangement that is reflected in the comparative Write-down of property, plant and equipment 17 - 18 18
information for the years ended 31 March 2019 and 2018. Write-down of intangible assets 18 - - 46
Product warranty 1,131 1,016 698
The scheme provided a cash payment to the employee based on a specific number of phantom shares at the grant date and the share Publicity 733 856 951
price of Tata Motors Limited at the vesting date. The cash payment was dependent upon continued employment for Total other expenses 5,238 5,567 5,846
the duration of the three-year vesting period.
11 Research and development

Year ended 31 March (number) 2019 2018
Outstanding at the beginning of the year 1,929,391 4,115,221
Vested in the year (1,764,566) (1,918,331) Year ended 31 March (£ millions) 2020 2019 2018
Forfeited in the year (164,825) (267,499)
Outstanding at the end of the year - 1,929,391 Total research and development costs incurred 1,790 1,997 2,016
Research and development expensed (421) (421) (406)
Engineering costs capitalised 1,369 1,576 1,610
Interest capitalised in engineering costs capitalised 105 99 88
The weighted average share price of the phantom shares vested payment LTIP (2018: credit of £1 million). Research and development grants capitalised (48) (96) (105)
in the years ended 31 March 2019 and 31 March 2018 was Total internally developed intangible additions 1,426 1,579 1,593
£3.20 and £4.33 respectively. The fair value of the balance sheet liability in respect of phantom
stock awards outstanding at 31 March 2019 was £nil (2018: £7
The weighted average remaining contractual life of the million) and is included in “Provisions”. Engineering costs capitalised of £1,369 million (2019: £1,576 as a Research and Development Expenditure Credit (“RDEC”)
outstanding phantom shares as at 31 March 2019 was nil years million, 2018: £1,610 million) comprises £471 million (2019: incentive on qualifying expenditure. During the year ended 31
(2018: 0.3 years). The fair value of the awards was calculated using the Black- £672 million, 2018: £556 million) included in “Employee costs” March 2020, £47 million (2019: £91 million, 2018: £102 million)
Scholes model at the grant date. The fair value was updated at and £898 million (2019: £904 million, 2018: £1,054 million) of the RDEC – the proportion relating to capitalised product
No phantom shares were exercisable as at 31 March 2019 or 31 each reporting date as the awards are accounted for as cash- included in “Other expenses” in the consolidated income development expenditure and other intangible assets – has been
March 2018. settled under IFRS 2. The inputs into the model are based on Tata statement. offset against the cost of the respective assets. The remaining
Motors Limited historical data and the risk-free rate is calculated £55 million (2019: £44 million, 2018: £45 million) of the RDEC
During the year ended 31 March 2019, £1 million was recognised using government bond rates. The significant inputs used are as During the year ended 31 March 2020, £102 million (2019: £135 has been recognised as “Other income”.
as a credit in “Employee costs” in relation to the share-based follows: million, 2018: £147 million) was recognised by a UK subsidiary
As at 31 March 2019 2018 12 Finance income and expense

Risk-free rate n/a 0.87%
Dividend yield n/a -%
Weighted average fair value per phantom share n/a £3.32 Year ended 31 March (£ millions) 2020 2019 2018
Finance income 52 35 33
Total finance income 52 35 33
Total interest expense on financial liabilities measured at amortised cost (295) (206) (172)
Interest income on derivatives designated as a fair value hedge of financial liabilities 3 4 3
Unwind of discount on provisions (31) (26) (20)
Interest capitalised 114 117 104
Total finance expense (net) (209) (111) (85)

The capitalisation rate used to calculate borrowing costs eligible Group repaid one tranche of debt (see note 25). No redemption 14 Taxation
for capitalisation was 4.2 per cent (2019: 4.1 per cent, 2018: 4.1 premium was incurred.
per cent). Amounts recognised in the Consolidated Income Statement
During the year ended 31 March 2020 the Group issued debt at a
During the year ended 31 March 2020, the Group repaid two premium of £9 million (2019, 2018: no debt issued at a premium).
tranches of debt and during the year ended 31 March 2019, the
Current tax expense
Current year 178 141 295
13 (Loss)/profit before tax
Adjustments for prior years 3 40 52
Expense/(income) in (loss)/profit before tax includes the following: Current tax expense 181 181 347
Deferred tax (credit)/expense
Origination and reversal of temporary differences (164) (246) 64
Adjustments for prior years (11) (48) (76)
Year ended 31 March (£ millions) 2020 2019 2018 Write-down of deferred tax assets (8) (245) -
Rate changes 49 50 63
Foreign exchange loss/(gain) and fair value adjustments on loans 135 45 (69)
Foreign exchange (gain)/loss on economic hedges of loans (29) 18 (11) Deferred tax (credit)/expense (134) (489) 51
Foreign exchange (gain)/loss on derivatives (15) 31 (74) Total income tax expense/(credit) 47 (308) 398
Unrealised loss on commodities 78 34 2
Fair value loss/(gain) on equity investments 43 (26) (3) Amounts recognised in the Consolidated Statement of Other Comprehensive Income
Depreciation of right-of-use assets 92 - -
Depreciation of property, plant and equipment 929 1,078 1,011 Year ended 31 March (£ millions) 2020 2019 2018
Amortisation of intangible assets (excluding internally generated development costs) 101 119 122
Amortisation of internally generated development costs 788 967 942 Deferred tax expense/(credit) on actuarial gains on retirement benefits 186 (52) 104
Operating lease rentals in respect of plant, property and equipment - 92 92 Deferred tax expense/(credit) on change in fair value of cash flow hedges 58 (19) 464
Expenses related to short-term leases 13 - -
Deferred tax (credit)/expense on rate changes (32) 14 (17)
Expenses related to low-value assets, excluding short-term leases of low-value
assets 7 - - 212 (57) 551
Loss on disposal of property, plant, equipment and software 20 59 22 Total tax expense/(credit) 259 (365) 949
Exceptional items 29 3,271 (438)
Auditor remuneration (see below) 7 5 4
Reconciliation of Effective Tax Rate
During the year ended 31 March 2020, £12 million (2019: £12 During the year ended 31 March 2020, £12 million (2019: £10
million, 2018: £56 million) was received by a foreign subsidiary million, 2018: £87 million) was recognised in “Other income” Year ended 31 March (£ millions) 2020 2019 2018
as an indirect tax incentive that requires the subsidiary to meet by a foreign subsidiary as an incentive for continuing trading in
(Loss)/profit for the year (469) (3,321) 1,114
certain criteria relating to vehicle efficiency and investment that country for the foreseeable future. This includes amounts
Total income tax expense/(credit) 47 (308) 398
in engineering and research and development. The incentive is received as cash in the year and amounts that the subsidiary is
provided as a partial offset to the higher sales taxes payable due to receive and for which there are no ongoing financial or (Loss)/profit before tax (422) (3,629) 1,512
following implementation of new legislation in the year ended 31 operating conditions attached. Income tax (credit)/expense using the tax rates
March 2014. During the year ended 31 March 2020, £12 million applicable to individual entities of 14.0%
(2019: 18.3%, 2018: 23.1%) (59) (664) 350
(2019: £12 million, 2018: £56 million) has been recognised in
Non-deductible expenses 28 62 22
“Revenue”.
Unrecognised or written-down deferred tax assets 9 245 5
Changes in tax rates 49 50 63
Year ended 31 March (£ millions) 2020 2019 2018 Overseas unremitted earnings 6 8 30
Fees payable to the Company's auditor and its associates for the audit of the parent company and Tax on share of profit of equity accounted investments 22 (1) (48)
consolidated financial statements 0.1 0.1 0.1 Over provided in prior years (8) (8) (24)
Fees payable to the Company's auditor and its associates for other services:
Total income tax expense/(credit) 47 (308) 398
- Audit of the Company's subsidiaries (included in 2018: £0.1m payable to Deloitte) 5.6 4.4 3.4
Total audit fees 5.7 4.5 3.5
Included within “Over provided in prior years” for the year ended rates” is a £49 million charge for the impact of the change in the
Audit-related assurance services (included in 2018: £0.3m payable to Deloitte) 0.8 0.8 0.8
Other assurance services 0.3 0.1 -
31 March 2020 is £7 million credit relating to revisions of prior UK Statutory rate from 17 per cent to 19 per cent on deferred
Total non-audit fees 1.1 0.9 0.8 year estimates of tax positions in various jurisdictions, principally tax assets and liabilities.
Total audit and related fees 6.8 5.4 4.3 the UK, to bring them into line with the latest estimates and
currently filed tax positions. Included within “Changes in tax Included within “Non-deductible expenses” for the year ended

31 March 2019 is a £53 million charge for the impact of the corporation tax rate to 17 per cent with effect from 1 April 2020. Except for CloudCar Inc. and Driveclub Limited, the proportion Rover Automotive Company Ltd. is not publicly listed.
impairment recorded in the year on non-tax-deductible property, of voting rights disclosed in the table above is the same as the
plant and equipment and intangible assets. Subsequently a change to the main UK corporation tax rate, Group’s interest in the ordinary share capital of each undertaking. During the year ended 31 March 2020, a dividend of £67
announced in the Budget on 11 March 2020, was substantively million was received from Chery Jaguar Land Rover Automotive
Included within “Over provided in prior years” for the year ended enacted for IFRS purposes on 17 March 2020. The rate applicable Individually material joint ventures Company Ltd. (2019: £22 million, 2018: £206 million).
31 March 2018 is £24 million credit relating to revisions of prior from 1 April 2020 now remains at 19 per cent, rather than the
year estimates of tax positions to bring them into line with the previously enacted reduction to 17 per cent. Chery Jaguar Land Rover Automotive Company Ltd. is a limited During the year ended 31 March 2020, the Group has increased
currently filed tax positions. Included within “Changes in tax liability company whose legal form confirms separation between its investment in Chery Jaguar Land Rover Automotive Company
rates” is a £54 million charge for the impact of the change in the Accordingly, UK deferred tax has been provided at a rate of 19 the parties to the joint arrangement. There is no contractual Ltd. by £67 million (2019,2018: £nil).
US Federal rate from 35 per cent to 21 per cent on deferred tax per cent on assets (2019: 17.6 per cent, 2018: 17.8 per cent) arrangement or any other facts or circumstances that indicate
assets. and 19 per cent on liabilities (2019: 17.4 per cent, 2018: 17.6 that the parties to the joint control of the arrangement have The following tables sets out the summarised financial
per cent), recognising the applicable tax rate at the point when rights to the assets or obligations for the liabilities relating to the information of the Group’s individually material joint venture,
Impact of Future Rate Changes the timing difference is expected to reverse. arrangement. Accordingly, Chery Jaguar Land Rover Automotive Chery Jaguar Land Rover Automotive Company Ltd., after
Company Ltd. is classified as a joint venture. Chery Jaguar Land adjusting for material differences in accounting policies:
The UK Finance Act 2016 was enacted during the year ended 31
March 2017, which included provisions for a reduction in the UK
As at 31 March (£ millions) 2020 2019 2018
Current assets 599 748 892
15 Investments Current liabilities (1,348) (1,103) (1,076)
Non-current assets 1,570 1,439 1,324
Investments consist of the following:
Non-current liabilities (82) (122) (154)
Equity attributable to shareholders 739 962 986
Revenue 1,295 1,697 2,773
Equity accounted investments 362 477 488 (Loss)/profit for the year (224) 13 504
Other investments 37 69 28 Total comprehensive (expense)/income (224) 13 504
Total investments 399 546 516
Included within the summarised financial information above are the following amounts:
The group has the following equity accounted investments as at 31 March 2020:
Principal place of Cash and cash equivalents 278 316 439

Name of Proportion of business and Other current assets 321 432 453
Principal activity Registered office address
investment voting rights country of Current financial liabilities (excluding trade and other payables and provisions) (584) (279) (42)
incorporation Non-current financial liabilities (excluding trade and other payables and provisions) (82) (123) (152)
Chery Jaguar Land 50.0% China Manufacture and Room 1102, Binjiang Depreciation and amortisation (201) (206) (139)
Rover Automotive assembly of vehicles International Plaza, No
Interest income 14 12 27
Company Ltd. 88 Tonggang Road,
Changshu Economic and Technical Interest expense (25) (14) (7)
Development Zone, Suzhou City, Income tax credit/(expense) 56 (6) (136)
Jiangsu Province, China
Jaguar Cars Finance 49.9% England & Wales Non-trading 280 Bishopsgate, London, EC2M 4RB,
Limited England Associates held and the indirect shareholding held through Driveclubservice
Synaptiv Limited 33.3% England & Wales Business and domestic 84 Kirkland Avenue, Ilford, Essex, England, Pte. Ltd. Both Driveclubservice Pte. Ltd. and Driveclub Limited
software development IG5 0TN
The Group has no additional rights or influence over Jaguar Cars are therefore accounted for as equity accounted investments as
CloudCar Inc. 33.3% USA Automotive software 2191 E Bayshore Rd 200
development Palo Alto, CA 94303 Finance Limited other than the voting rights attached to the the Group has significant influence over the companies.
USA ordinary share capital.
Driveclubservice Pte. 25.1% Singapore Holding company and 22 Sin Ming Lane, #06-76, Midview City, During the year ended 31 March 2018, the Group’s proportion of
Limited mobility application Singapore 573969 During the year ended 31 March 2018, the Group purchased the ordinary share capital in Cloudcar Inc. was diluted to 26 per
owner/licensor
25.08 per cent of the share capital of Driveclubservice Pte. cent of the ordinary share capital. However, the Group has 33 per
Driveclub Limited 25.8% Hong Kong Vehicle leasing Unit A, 9/F, D2 Place ONE, 9 Cheung Yee
Street, Lai Chi Kok, Kowloon, Hong Kong Ltd. for £0.2 million. In addition, the Group also purchased 1 per cent of the voting rights since a number of ordinary shares are in
ARC Vehicle Limited 29.2% England & Wales Manufacture and The Priory Barn Priory Road, Wolston, cent of the share capital of Driveclub Limited, the wholly owned the form of options either available for issue or assigned to the
development of Coventry, United Kingdom, CV8 3FX subsidiary of Driveclubservice Pte. Ltd. However, the Group has 26 employees of CloudCar Inc.
electrified vehicle
technology
per cent of the voting rights, being the 1 per cent of share capital

No dividend was received in the year ended 31 March 2020 The following reconciles the carrying amount of the Group’s 16 Other financial assets
(2019, 2018: no dividend) from any of the individually immaterial interests in equity accounted investments:
equity accounted investments.
Non-current
Restricted cash 7 6 6
Net assets of material joint venture 739 962 986
Derivative financial instruments 142 54 286
Share of net assets of:
Warranty reimbursement and other receivables 102 104 116
Material joint venture 370 481 493
Other 6 6 6
Individually immaterial equity accounted investments - 2 6
Other (8) (6) (11) Total non-current other financial assets 257 170 414
Carrying amount of the Group's interests in equity accounted investments 362 477 488 Current
Restricted cash 12 11 12
As at 31 March 2020, an adjustment of £8 million (2019: £6 that has not yet been realised on goods sold by the Group to Derivative financial instruments 241 133 264
million, 2018: £11 million) has been made to derecognise profit Chery Jaguar Land Rover Automotive Company Ltd. Warranty reimbursement and other receivables 87 88 98
Accrued income 14 44 35
The following reconciles the Group’s share of total comprehensive (expense)/income of equity accounted investments:
Other 29 38 85
Total current other financial assets 383 314 494
(Loss)/profit of material joint venture (224) 13 504

Share of (loss)/profit of:
Material joint venture (112) 7 252
Individually immaterial equity accounted investments (2) (4) -
Share of (loss)/profit of equity accounted investments (114) 3 252
Currency translation differences 1 (3) 14
Total comprehensive (expense)/income related to equity accounted investments (113) - 266
The information above reflects the amounts presented in the Other investments
financial statements of the equity accounted investments
adjusted for differences in accounting policies between the The Group’s other investments comprise equity investments of
Group and its equity accounted investments. All joint ventures 10 per cent or less of the ordinary share capital of the investee
are accounted for using the equity method and are private companies and are designated as fair value through profit and
companies and there are no quoted market prices available for loss financial instruments.
their shares.
Investment in Lyft, Inc. 17 46 22

Other immaterial investments 20 23 6
Total 37 69 28
During the year ended 31 March 2020, the Group invested £11 to the ordinary share capital, and during the year ended 31 March
million (2019: £14 million, 2018: £5 million) in other investments. 2020 no dividends were received (2019: £nil, 2018: £nil).
During the year ended 31 March 2018, the Group purchased 0.3
per cent of the ordinary share capital of Lyft, Inc. for £20 million. Disclosure of the valuation techniques applied in calculating the
fair value of these other non-equity accounted investments is
The Group has no additional rights or influence over any of its included in note 35(A).
other equity investments other than the voting rights attached

17 Property, plant and equipment 18 Intangible assets
Land and Plant and Vehicles Computers Fixtures & Leased Heritage Under Patents and Customer- Intellectual pro- Product Capitalised
(£ millions) buildings equipment fittings assets vehicles construction Total (£ millions) Software technological perty rights and development product Total
know-how related other intangibles in progress development
Cost Cost
Balance at 1 April 2017 1,164 6,492 9 104 94 46 52 1,020 8,981 Balance at 1 April 2017 595 147 61 633 2,156 5,196 8,788
Additions* 21 - 1 22 13 16 - 2,502 2,575 Other additions - externally purchased 99 - - 9 - - 108
Assets acquired on Other additions - internally developed - - - - 1,593 - 1,593
acquisition - - - 2 5 - - - 7 Other additions - on acquisition 1 - - 4 - - 5
Transfers 364 1,558 - - - - - (1,922) - Capitalised product development -
Disposals - (288) (1) (4) (5) (35) (1) - (334) internally developed - - - - (1,668) 1,668 -
Asset write-downs - - - - - - - (5) (5) Disposals (25) - - - - (131) (156)
Foreign currency translation - - - - - - - 1 1 Asset write-downs (9) - - - (24) - (33)
Balance at 31 March 2018 1,549 7,762 9 124 107 27 51 1,596 11,225 Balance at 31 March 2018 661 147 61 646 2,057 6,733 10,305
Additions* 9 - 1 48 21 5 3 1,550 1,637 Other additions - externally purchased 85 - - 5 - - 90
Transfers 723 1,545 - - - - - (2,268) - Other additions - internally developed - - - - 1,579 - 1,579
Disposals (3) (528) (1) (8) (3) - - - (543) Capitalised product development -
- - - - (1,084) 1,084 -
Impairment - - - - - - - (185) (185) internally developed
Foreign currency translation (17) (14) - - - - - 13 (18) Disposals (44) - - - - (844) (888)
Balance at 31 March 2019 2,261 8,765 9 164 125 32 54 706 12,116 Impairment (10) - - - (562) - (572)
Adjustment on initial application of Foreign exchange (1) - - - - - (1)
IFRS 16 (9) - - - - (32) - - (41) Balance at 31 March 2019 691 147 61 651 1,990 6,973 10,513
Adjusted opening balance 2,252 8,765 9 164 125 - 54 706 12,075 Other additions - externally purchased 111 - - - - - 111
Additions* - - 8 26 12 - - 1,218 1,264 Other additions - internally developed - - - - 1,426 - 1,426
Assets acquired on acquisition 1 - - - - - - - 1 Other additions - on acquisition - - - 2 - - 2
Transfers 285 895 - - - - - (1,180) - Capitalised product development -
- - - - (944) 944 -
Disposals - (20) (1) (2) (2) - (1) (11) (37) internally developed
Foreign currency translation 18 19 - 1 - - - (1) 37 Disposals (2) - - - - (345) (347)
Balance at 31 March 2020 2,556 9,659 16 189 135 - 53 732 13,340 Foreign exchange 2 - - (1) - - 1
Depreciation and impairment Balance at 31 March 2020 802 147 61 652 2,472 7,572 11,706
Balance at 1 April 2017 147 2,836 4 31 39 39 - - 3,096 Amortisation and impairment
Depreciation charge for the period 60 920 1 16 12 2 - - 1,011 Balance at 1 April 2017 201 127 27 - - 2,266 2,621
Disposals - (268) (1) (4) (4) (35) - - (312) Amortisation for the year 99 14 3 6 - 942 1,064
Asset write-downs - - - - - - 13 - 13 Disposals (25) - - - - (131) (156)
Balance at 31 March 2018 207 3,488 4 43 47 6 13 - 3,808 Asset write-downs 13 - - - - - 13
Depreciation charge for the period 82 965 1 18 10 2 - - 1,078 Balance at 31 March 2018 288 141 30 6 - 3,077 3,542
Disposals (2) (480) (1) (6) (2) - - - (491) Amortisation for the year 106 6 3 4 - 967 1,086
Impairment - 1,162 1 26 16 6 - - 1,211 Disposals (36) - - - - (843) (879)
Asset write-downs - - - - - - 18 - 18 Impairment 75 - 7 152 - 903 1,137
Balance at 31 March 2019 287 5,135 5 81 71 14 31 - 5,624 Balance at 31 March 2019 433 147 40 162 - 4,104 4,886
Adjustment on initial application of Amortisation for the year 96 - 2 3 - 788 889
IFRS 16 - - - - - (14) - - (14) Disposals (2) - - - - (345) (347)
Adjusted opening balance 287 5,135 5 81 71 - 31 - 5,610 Balance at 31 March 2020 527 147 42 165 - 4,547 5,428
Depreciation charge for the period 112 792 2 14 9 - - - 929 Net book value
Disposals - (14) - (1) (1) - - - (16) At 31 March 2018 373 6 31 640 2,057 3,656 6,763
Translation 2 1 - - - - - - 3 At 31 March 2019 258 - 21 489 1,990 2,869 5,627
Balance at 31 March 2020 401 5,914 7 94 79 - 31 - 6,526 At 31 March 2020 275 - 19 487 2,472 3,025 6,278
Net book value
At 31 March 2018 1,342 4,274 5 81 60 21 38 1,596 7,417
At 31 March 2019 1,974 3,630 4 83 54 18 23 706 6,492 During the year ended 31 March 2020 £nil (2019: £nil, 2018: cash-generating unit (“CGU”). This is because of the closely
At 31 March 2020 2,155 3,745 9 95 56 - 22 732 6,814 £46 million) costs were identified as being written down and connected nature of the cash flows and the degree of integrated
recognised as an expense within “Other expenses”. development and manufacturing activities.
As part of the Group’s review of the carrying value of property, written down and recognised as an expense within “Other
plant and equipment, £nil (2019: £18 million, 2018: £18 million) expenses”. Impairment Testing In response to the annual requirement of IAS 36, and the
of heritage vehicles and assets under construction have been economic impact of COVID-19 (see note 2 for more details
The directors are of the view that the operations of the Group, on the immediate impact on JLR), management performed an
excluding equity accounted investments, represent a single impairment assessment as at 31 March 2020.

In the year ending 31 March 2019 an impairment loss was forecasts based on JLRs geographical sales footprint; possible changes, however, as a significant portion of the consider a net impact on terminal period cash flows to be the
recorded and therefore the recoverable amount of the CGU was recoverable amount lies in the VIU terminal value, management best means of indicating the sensitivity of the model to such
equal to its carrying amount. However, as seen in the Group’s Q2 • Discount rate - the discount rate is calculated with reference have focussed disclosures on reasonably possible changes that changes in the terminal period.
and Q3 results, prior to the impact of COVID-19, the business to a weighted average cost of capital (WACC) calculated impact the terminal value.
was performing well, hitting growth and profitability targets by reference to an industry peer group. Inputs include risk- The value of key assumptions used to calculate the recoverable
through both sales growth and strong cost control. Performance free rate, equity risk premium and risk adjustments based Given the inherent uncertainty about how risk may arise, and amount are as follows:
improvements included continued growth in one of the Group’s on company-specific risk factors including risks associated the interaction of volumes and cost management, management
key markets, China. with uncertainty in relation to the short-term impact of
COVID-19, Brexit and possible US tariffs;
Similar to the prior year, a significant amount of the value in the VIU As at 31 March 2020 2019 2018
assessment is in the terminal value. Management are forecasting • Forecast vehicles volumes – the 5-year volumes have been Growth rate applied beyond approved forecast period 1.9% 1.9% 2.0%
volumes to be returning to comparable pre-COVID-19 levels by validated against industry standard external data for market Pre-tax discount rate 12.5% 11.8% 8.7%
2023 and therefore the impact of COVID-19 on the VIU is offset segment and geography and adjusted to reflect historical Terminal value variable profit (%GVR) 19.7% 22.6% 23.6%
by the long-term view of the business supported by the observed experience and latest Cycle Plan assumptions;
Terminal value capital expenditure (%GVR) 9.1% 11.0% 14.5%
pre-COVID-19 trading. The forecast data has been supported by
external industry sources. • Terminal value variable profit – the 5-year variable profit
forecasts are comprised of revenue, variable marketing, The table below shows the amount by which the value assigned to the key assumptions must change for the recoverable amount of
For the current year assessment, the recoverable value was warranty costs, material costs and other variable costs. the CGU to be equal to its carrying amount:
determined using the value in use (“VIU”) approach outlined in IAS These values have been validated against historical
36. No impairment was identified as the CGU recoverable amount performance rather than internal targets and adjusted for
As at 31 March 2020 (1) % Change Revised Assumption
exceeded its carrying amount by £380m. The impairment loss execution risk by further constraining cash flow estimates.
Growth rate applied beyond approved forecast period -17.80% 1.6%
recorded in the previous year was not reversed because it was The business has a range of vehicles and models at different
considered that there was no significant change in the headroom stages in their product lifecycle. This variability drives Pre-tax discount rate +2.80% 12.9%
associated with the CGU. different contribution levels for each product throughout Terminal value variable profit (%GVR) -0.90% 19.5%
the assessment period. When considering the cash flows Terminal value capital expenditures (%GVR) +1.94% 9.3 %
The Group has considered it appropriate to undertake the to model into perpetuity, it is therefore necessary to derive
impairment assessment with reference to the latest business a steady-state variable profit value based on the 5-year (1)For the year ended 31 March 2019, the recoverable amount of the CGU was equal to its carrying amount, therefore the above disclosure is not applicable. For the year ended 31 March 2018, the
plan that was in effect as at the reporting date. This plan has volume set and associated implied variable profit levels; recoverable amount of the CGU was higher than its carrying amount by £11,371m and it was not identified any reasonably possible change in the key assumptions that would cause the recoverable
amount of the CGU to be equal to its carrying amount.
been updated to reflect management’s best estimate of the
impact of all relevant adjusting post balance sheet events, with • Terminal value SG&A expenses – SG&A expenses comprise
consideration given to those arising due to the economic impact a combination of fixed and variable costs and are subject to FY19 disclosures with no FY20 equivalent
of COVID-19. The business plan includes a five-year cash flow ambitious current business plans. For the 5-year cash flow
forecast and contains growth rates that are primarily a function forecasts the ambition has been constrained by adjusting In the impairment assessment performed by Management as at The impairment loss of £3,105 million has been allocated
of the Group’s Cycle Plan assumptions, historic performance cashflows to reflect historical levels i.e. not including all of 31 March 2019, the recoverable value was determined based on initially against goodwill of £1 million and the relevant assets,
and management’s expectation of future market developments management’s planned actions for continued cost control. value in use (“VIU”), which was marginally higher than the fair and thereafter the residual amount has been allocated on a pro-
through to 2024/25. In forecasting the future cash flows The terminal value assumption is held at similar levels to the value less cost of disposal (“FVLCD”) of the relevant assets of the rated basis. This has resulted in £1,396 million allocated against
management have given due consideration to the risks that have 5-year forecast period; CGU. The recoverable amount was lower than the carrying value tangible assets and £1,709 million allocated against intangible
arisen due to the current economic uncertainty. of the CGU, and this resulted in an exceptional impairment charge assets.
• Terminal value capital expenditure – the 5-year cash of £3,105 million being recognised within “Other expenses” as at
The Group has assessed the impact of COVID-19 and updated flows timing and amount are prepared based on the latest 31 March 2019.
the cash flow forecast to reflect the latest Cycle Plan changes, Cycle Plan. The terminal value has been derived based the
including investment spend and new vehicle volume forecast. directors best estimate of a maintenance levels of capital
Additionally, the Group has assessed the potential risk of a more expenditure which has been derived from depreciation and
severe impact due to COVID-19 on volume in the short term amortisation expectations and longer-term trends which are
(consistent with Going Concern basis of preparation, see page included in the VIU calculation. Expenditure on new models
53. The potential impact of this reasonably possible outcome is excluded as “expansionary capital” unless expenditure is
of a short-term volume reduction and slower recovery has been committed and substantively incurred as at the reporting
included in the VIU calculations through an adjustment in the date.
discount rate.
Sensitivity to key assumptions
The directors’ approach and key assumptions used to determine The key assumptions that impact the value in use are those that
the Group’s CGU VIU were as follows: (i) involve a significant amount of judgement and estimation and
(ii) drive significant changes to the recoverable amount when
• Growth rate applied beyond approved forecast period - flexed under reasonably possible outcomes. As noted above, with
calculated based on the weighted average long term GDP a small level of headroom the VIU is sensitive to many reasonably

19 Other assets All deferred tax assets and deferred tax liabilities at 31 March Significant components of deferred tax assets and liabilities for
2020, 2019 and 2018 are presented as non-current. the year ended 31 March 2019 are as follows:

Non-current Adjustment on Adjusted Recognised Recognised in Reclassi-
(£ millions) Opening initial Opening in profit or other fied from Foreign Closing
Prepaid expenses 8 83 82 balance application of balance loss comprehensive other equi- exchange balance
IFRS 9 income ty reserves
Other 15 - - Deferred tax assets
Total non-current other assets 23 83 82 Property, plant & equipment 9 - 9 535 - - - 544
Current Expenses deductible in future
239 - 239 80 - - 6 325
periods
Recoverable VAT 228 301 329
Derivative financial instruments 80 6 86 7 18 23 - 134
Prepaid expenses 139 156 177 Retirement benefits 77 - 77 (2) 38 - - 113
Research and development credit 85 113 114 Unrealised profit in inventory 157 - 157 (38) 1 - - 120
Other 25 - 10 Tax loss 367 - 367 (289) - - - 78
Other 100 - 100 26 - - - 126
Total current other assets 477 570 630
Total deferred tax asset 1,029 6 1,035 319 57 23 6 1,440
Deferred tax liabilities
Intangible assets 1,100 - 1,100 (172) - - - 928
20 Deferred tax assets and liabilities Overseas unremitted earnings 99 - 99 2* - - - 101
Total deferred tax liability 1,199 - 1,199 (170) - - - 1,029
Significant components of deferred tax assets and liabilities for the year ended 31 March 2020 are as follows: Presented as deferred tax
413 512
asset**
Adjustment on Recognised in Reclassi- Presented as deferred tax
Opening initial Adjusted Recognised other fied from Foreign Closing
(583) (101)
(£ millions) opening in profit or liability**
balance application of balance loss comprehensive other equity exchange balance
IFRS 16 income reserves *Included within £2 million is a reversal of £5 million relating to withholding tax incurred on intercompany dividends paid in the year.
Deferred tax assets **For balance sheet presentation purposes, deferred tax assets and deferred tax liabilities are offset to the extent that they relate to the same taxation authority and are expected to be settled on
a net basis.
Property, plant & equipment 544 3 547 87 - - 1 635
Expenses deductible in future
periods 325 - 325 51 - - 1 377
Derivative financial instruments 134 - 134 (14) (56) 6 - 70 Significant components of deferred tax assets and liabilities for the year ended 31 March 2018 are as follows:
Retirement benefits 113 - 113 (32) (155) - - (74)
Unrealised profit in inventory 120 - 120 6 (1) - - 125
Tax loss 78 - 78 141 - - - 219
Opening Recognised in Recognised in other Foreign
Other 126 - 126 19 - - - 145 (£ millions) comprehensive Closing balance
balance profit or loss income exchange
Total deferred tax asset 1,440 3 1,443 258 (212) 6 2 1,497
Deferred tax liabilities Deferred tax assets
Intangible assets 928 - 928 115 - - - 1,043 Property, plant & equipment 12 (3) - - 9
Overseas unremitted earnings 101 - 101 9 - - - 110 Expenses deductible in future periods 222 35 - (18) 239
Total deferred tax liability 1,029 - 1,029 124 - - - 1,153 Derivative financial instruments 547 (5) (462) - 80
Presented as deferred tax Retirement benefits 252 (86) (89) - 77
asset* 512 523 Unrealised profit in inventory 192 (35) - - 157
Presented as deferred tax Tax loss 209 159 - (1) 367
liability* (101) (179) Other 72 28 - - 100
Total deferred tax asset 1,506 93 (551) (19) 1,029
*For balance sheet presentation purposes, deferred tax assets and deferred tax liabilities are offset to the extent that they relate to the same taxation authority and are expected to be settled on a
net basis. Deferred tax liabilities
Intangible assets 995 105 - - 1,100
At 31 March 2020, deferred tax assets of £523 million (2019: temporary differences amounting to £1,660 million (2019: Overseas unremitted earnings 60 39* - - 99
£512 million, 2018: £413 million) have been recognised in £1,599 million, 2018: £117 million), for which no deferred tax Total deferred tax liability 1,055 144 - - 1,199
relation to deductible temporary differences, including unused asset has been recognised on the basis of forecast profitability Presented as deferred tax asset** 511 413
tax losses, on the basis that it is probable that future taxable of the companies in which the deferred tax assets arise. £15 Presented as deferred tax liability** (60) (583)
profits will be available against which those deductible temporary million (2019: £3 million, 2018: £3 million) of those tax losses
*Included within £39 million is a reversal of £6 million relating to withholding tax incurred on intercompany dividends paid in the year and an additional provision for £15 million relating to prior year
differences can be utilised. are subject to expire between FY27 and FY32. The remaining earnings.
**For balance sheet presentation purposes, deferred tax assets and deferred tax liabilities are offset to the extent that they relate to the same taxation authority and are expected to be settled on
balance is not expected to expire. a net basis.
At 31 March 2020, the Group had unused tax losses and other

21 Cash and cash equivalents 25 Interest-bearing loans and borrowings
As at 31 March (£ millions) 2020 2019 2018 As at 31 March (£ millions) 2020 2019 2018
Cash and cash equivalents 2,271 2,747 2,626 Short-term borrowings
Bank loans - 114 155
Current portion of long-term EURO MTF listed debt 299 767 497
22 Allowances for trade and other receivables Current portion of long-term loans 225 - -
Other secured 2 - -
Year ended 31 March (£ millions) 2020 2019 2018 Short-term borrowings 526 881 652
At beginning of year 12 50 60 Long-term borrowings
Charged during the year 11 4 3 EURO MTF listed debt 3,562 2,844 3,060
Receivables written off during the year as uncollectable (4) (41) (4) Bank loans 1,241 755 -
Unused amounts reversed (8) 2 (1) Other unsecured 14 - -
Foreign currency translation - (3) (8) Long-term borrowings 4,817 3,599 3,060
At end of year 11 12 50 Lease obligations 541 31 19
Total debt 5,884 4,511 3,731
Trade receivables with a contractual amount of £2 million (2019 £38 million, 2018: £nil) that were written off during the year are
still subject to enforcement activity.
Euro MTF listed debt
23 Inventories
The bonds are listed on the Luxembourg Stock Exchange • $500 million Senior Notes due 2019 at a coupon of 4.250
multilateral trading facility (“EURO MTF”) market. Details of the per cent per annum – issued October 2014
As at 31 March (£ millions) 2020 2019 2018 tranches of the bonds outstanding at 31 March 2020 are as • $500 million Senior Notes due 2020 at a coupon of 3.500
Raw materials and consumables 104 130 93 follows: per cent per annum – issued March 2015
Work-in-progress 388 369 335
• $500 million Senior Notes due 2023 at a coupon of 5.625 Details of the tranches of the bond repaid in the year ended 31
Finished goods 2,977 3,117 3,339
per cent per annum – issued January 2013 March 2019 are as follows:
Inventory basis adjustment (1) (8) - • £400 million Senior Notes due 2022 at a coupon of 5.000 • $700 million Senior Notes due 2018 at a coupon of 4.125
Total inventories 3,468 3,608 3,767 per cent per annum – issued January 2014 per cent per annum – issued December 2013
• £400 million Senior Notes due 2023 at a coupon of 3.875
Inventories of finished goods include £466 million (2019: £484 During the year, the Group recorded an inventory write-down per cent per annum – issued February 2015 No tranches of bonds were repaid in the year ended 31 March
million, 2018: £436 million) relating to vehicles sold to rental expense of £28 million (2019: £52 million, 2018: £55 million), • €650 million Senior Notes due 2024 at a coupon of 2.200 2018.
car companies, fleet customers and others with guaranteed excluding a reversal of a write-down recorded in a previous per cent per annum – issued January 2017
repurchase arrangements. period in relation to the Tianjin incident of £nil (2019: £nil, 2018: • £300 million Senior Notes due 2021 at a coupon of 2.750 Syndicated loan
£1 million). This included the impact of COVID-19 as part of the per cent per annum – issued January 2017 In October 2018, a $1 billion syndicate loan was issued with a
Cost of inventories (including cost of purchased products) Group’s inventory provisioning methodology. The write-down • $500 million Senior Notes due 2027 at a coupon of 4.500 coupon rate of LIBOR + 1.900 per cent per annum, due in the
recognised as an expense during the year amounted to £16,902 excluding the reversal is included in “Material and other cost of per cent per annum – issued October 2017 following tranches:
million (2019: £18,086 million, 2018: £19,152 million). sales”. • €500 million Senior Notes due 2026 at a coupon of 4.500
per cent per annum – issued September 2018 • $200 million due October 2022
• €500 million Senior Notes due 2024 at a coupon of 5.875 • $800 million due January 2025
24 Accounts payable per cent per annum – issued November 2019
• €500 million Senior Notes due 2026 at a coupon of 6.875 The contractual cash flows of interest-bearing debt (excluding
per cent per annum – issued November 2019 leases) are set out on the next page, including estimated interest
As at 31 March (£ millions) 2020 2019 2018 payments and assuming the debt will be repaid at the maturity
Trade payables 3,723 4,444 4,800 Details of the tranches of the bond repaid in the year ended 31 date.
March 2020 are as follows:
Liabilities to employees 143 114 139
Liabilities for expenses 1,950 1,757 1,796
Capital creditors 683 768 879
Total accounts payable 6,499 7,083 7,614

As at 31 March (£ millions) 2020 2019 2018 27 Provisions

Due in
1 year or less 765 1,071 794 As at 31 March (£ millions) 2020 2019 2018
2nd and 3rd years 2,039 1,011 1,228
Current
4th and 5th years 2,145 1,696 1,305
Product warranty 731 694 613
More than 5 years 1,441 1,559 1,008
Legal and product liability 124 154 119
Total contractual cash flows 6,390 5,337 4,335
Provisions for residual risk 61 9 7
Provision for environmental liability 6 14 11
During the year ended 31 March 2019, the Group entered into UK fleet financing facility
Other employee benefits obligations 7 13 8
a $700 million factored receivables facility that expires in 2021.
Restructuring 15 104 -
Under the terms of the facility, the Group de-recognises factored During the year ended 31 March 2020, the Group entered into
receivables in accordance with IFRS 9 as there are no recourse a secured revolving loan facility letter dated 25 October 2019 Total current provisions 944 988 758
arrangements. with Black Horse Limited, with an aggregate principal amount Non-current
of £100 million. The facility is secured by a floating charge over Product warranty 1,155 1,048 980
UK export finance facility inactive own-use (OUVs) vehicles.
Legal and product liability 54 43 24
Provision for residual risk 114 31 28
During the year ended 31 March 2020, the Group entered and Undrawn facilities
drew down in full a £625 million five-year amortising loan facility Provision for environmental liability 17 15 16
backed by a £500 million guarantee from UK Export Finance. As at 31 March 2020, the Group has a fully undrawn revolving Other employee benefits obligations 15 3 7
credit facility of £1,935 million (2019: £1,935 million, 2018: Total non-current provisions 1,355 1,140 1,055
£1,935 million). This facility is available in full until 2022.
Year ended 31 March 2020 Product Legal and Residual Environmental Other employee
(£ millions) warranty product liability risk liability benefits Restructuring Total
26 Other financial liabilities obligations
Opening balance 1,742 197 40 29 16 104 2,128
Provisions made during the year 1,127 136 153 14 39 32 1,501
As at 31 March (£ millions) 2020 2019 2018 Provisions used during the year (1,014) (85) (9) (12) (32) (120) (1,272)
Current Unused amounts reversed in the
Lease obligations 73 3 3 period - (71) (13) (8) (1) (1) (94)
Impact of unwind of discounting 31 - - - - - 31
Interest accrued 65 33 32
Foreign currency translation - 1 4 - - - 5
Derivative financial instruments 453 523 668 Closing balance 1,886 178 175 23 22 15 2,299
Liability for vehicles sold under a repurchase
arrangement 479 469 479
Other 3 14 7
Product warranty provision
Total current other financial liabilities 1,073 1,042 1,189
Non-current The Group offers warranty cover in respect of manufacturing The Group considered the impact of the COVID-19 pandemic
Lease obligations 468 28 16 defects, which become apparent one to five years after purchase, on its product warranty offerings and associated provisions, and
dependent on the market in which the purchase occurred and determined that its existing methodology remained applicable
Derivative financial instruments 310 281 257
the vehicle purchased. The group offers warranties of up to eight for the year ended 31 March 2020.
Other - 1 8
years on batteries in electric vehicles. The estimated liability for
Total non-current other financial liabilities 778 310 281 product warranty is recognised when products are sold or when Legal and product liability provision
new warranty programmes are initiated. These estimates are
established using historical information on the nature, frequency A legal and product liability provision is maintained in respect of
and average cost of warranty claims and management estimates compliance with regulations and known litigations that impact
regarding possible future warranty claims, customer goodwill the Group. The provision primarily relates to motor accident
and recall complaints. The discount on the warranty provision is claims, consumer complaints, retailer terminations, employment
calculated using a risk-free discount rate as the risks specific to cases, personal injury claims and compliance with emission and
the liability, such as inflation, are included in the base calculation. battery disposal regulations. The timing of outflows will vary as
The timing of outflows will vary as and when a warranty claim and when claims are received and settled, which is not known
will arise, being typically up to eight years. with certainty.

Residual risk provision Environmental liability provision 30 Other reserves
In certain markets, the Group is responsible for the residual risk This provision relates to various environmental remediation costs The movement of reserves is as follows:
arising on vehicles sold by retailers on leasing arrangements. The such as asbestos removal and land clean-up. The timing of when
(£ millions) Translation Hedging Cost of hedging Retained Total other
provision is based on the latest available market expectations of these costs will be incurred is not known with certainty. reserve reserve reserve earnings reserves
future residual value trends. The timing of the outflows will be Balance at 1 April 2019 (337) (506) (33) 5,181 4,305
at the end of the lease arrangements, being typically up to three Other employee benefit obligations Adjustment on initial application of IFRS 16 (net of tax) - - - (23) (23)
years. Adjusted balance at 1 April 2019 (337) (506) (33) 5,158 4,282
This provision relates to the LTIP scheme for certain employees Loss for the year - - - (471) (471)
The potential effects of the COVID-19 pandemic, particularly the (see note 9) and other amounts payable to employees. Remeasurement of defined benefit obligation - - - 983 983
estimated decline and subsequent recovery in the used vehicle Loss on effective cash flow hedges - (334) - - (334)
market, were included in the Group’s methodology applied in Restructuring provision Gain/(loss) on effective cash flow hedges of inventory - 82 (7) - 75
estimating the residual value exposure for the year ended 31 Income tax related to items recognised in other comprehensive income - 49 1 (155) (105)
March 2020. These assessments were performed with reference This provision relates to amounts payable to employees under Cash flow hedges reclassified to profit and loss - 571 (8) - 563
to both internal and external market inputs. the Group restructuring programme announced and carried out Income tax related to items reclassified to profit or loss - (109) 2 - (107)
during the years ended 31 March 2020 and 31 March 2019 (note Amounts removed from hedge reserve and recognised in inventory - (48) 15 - (33)
4). Income tax related to amounts removed from hedge reserve and recognised
in inventory - 9 (3) - 6
Currency translation differences 21 - - - 21
Balance at 31 March 2020 (316) (286) (33) 5,515 4,880
28 Other liabilities
Of which:
Amounts related to continuing hedges n/a (249) (32) n/a (281)
Amounts related to discontinued hedges n/a (37) (1) n/a (38)
Current Balance at 1 April 2018 (333) (281) (46) 8,968 8,308
Adjustment on initial application of IFRS 9 and IFRS 15 (net of tax) - (29) 2 (5) (32)
Liabilities for advances received 50 86 40
Adjusted balance at 1 April 2018 (333) (310) (44) 8,963 8,276
Ongoing service obligations 324 301 244 Loss for the year - - - (3,325) (3,325)
VAT 169 199 195 Remeasurement of defined benefit obligation - - - (270) (270)
Other taxes payable 148 53 43 (Loss)/gain on effective cash flow hedges - (813) 24 - (789)
Loss on effective cash flow hedges of inventory (161) (36) - (197)
Other 25 25 25
Income tax related to items recognised in other comprehensive income - 184 2 38 224
Total current other liabilities 716 664 547
Cash flow hedges reclassified to profit and loss - 874 7 - 881
Non-current Income tax related to items reclassified to profit or loss - (166) (1) - (167)
Ongoing service obligations 522 504 438 Amounts removed from hedge reserve and recognised in inventory - (141) 19 - (122)
Other 11 17 16 Income tax related to amounts removed from hedge reserve and recognised
- 27 (4) - 23
in inventory
Total non-current other liabilities 533 521 454 Currency translation differences (4) - - - (4)
Dividend paid - - - (225) (225)
Balance at 31 March 2019 (337) (506) (33) 5,181 4,305
Of which:
29 Capital and reserves
Amounts related to discontinued hedges n/a (40) - n/a (40)
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share Balance at 1 April 2017 (329) (2,232) (75) 7,549 4,913
at meetings of the Company. Profit for the year - - - 1,112 1,112
Remeasurement of defined benefit obligation - - - 546 546
As at 31 March (£ millions) 2020 2019 2018 Gain on effective cash flow hedges - 1,216 25 - 1,241
Authorised, called up and fully paid Income tax related to items recognised in other comprehensive income - (229) (5) (89) (323)
1,500,642,163 ordinary shares of £1 each 1,501 1,501 1,501 Cash flow hedges reclassified to profit and loss - 1,190 11 - 1,201
Income tax related to items reclassified to profit or loss - (226) (2) - (228)
Total ordinary share capital 1,501 1,501 1,501
Currency translation differences (4) - - - (4)
Dividend paid - - - (150) (150)
The capital redemption reserve of £167 million (2019, 2018: £167 million) was created in March 2011 on the cancellation of share Balance at 31 March 2018 (333) (281) (46) 8,968 8,308
capital. Of which:
Amounts related to discontinued hedges n/a (31) (3) n/a (34)
31 Dividends Change in present value of defined benefit obligation
Year ended 31 March (£ millions) 2020 2019 2018 Year ended 31 March (£ millions) 2020 2019 2018
Dividend proposed for the previous year paid during the year of £nil (2019:
Defined benefit obligation at beginning of year 8,648 8,320 9,969
£0.15, 2018: £0.10) per ordinary share - 225 150
Current service cost 133 158 217
Amounts recognised as distributions to equity holders during the year - 225 150
Proposed dividend for the year of £nil (2019: £nil, 2018: £0.15) per ordi- Past service cost/(credit) 4 42 (437)
nary share - - 225
Interest expense 203 216 241
Actuarial / losses(gains) arising from:
Changes in demographic assumptions 7 (49) (210)
32 Employee benefits Changes in financial assumptions (526) 544 (353)

Experience adjustments (139) 32 (99)
The Group operates DB pension schemes for qualifying However, the Group believes that due to the long-term nature Exchange differences on foreign schemes 1 - (3)
employees of certain subsidiaries. The UK defined benefit of the schemes’ liabilities and the strength of the supporting
Member contributions 2 2 4
schemes are administered by a trustee with assets held in trusts group, a level of continuing equity-type investments is currently
Benefits paid (545) (617) (988)
that are legally separate from the Group. The trustee of the an appropriate element of the Group’s long-term strategy to
pension schemes is required by law to act in the interest of the manage the schemes efficiently. Plan settlement - - (21)
members and of all relevant stakeholders in the schemes and is Defined benefit obligation at end of year 7,788 8,648 8,320
responsible for the investment policy with regard to the assets Changes in bond yields
of the schemes and all other governance matters. The board of Change in present value of scheme assets
the trustee must be composed of representatives of the Group A decrease in corporate bond yields will increase the schemes’
and scheme participants in accordance with each scheme’s liabilities, although this is expected to be partially offset by an
regulations. increase in the value of the schemes’ assets, specifically the
bond holdings and interest rate hedging instruments.
Fair value of schemes’ assets at beginning of year 7,981 7,882 8,508
Under the schemes, the employees are entitled to post-
retirement benefits based on their length of service and salary. Inflation risk Interest income 190 208 218
Remeasurement gain/(loss) on the return of plan assets, excluding
amounts included in interest income 325 257 (116)
Through its defined benefit pension schemes, the Group is Some of the Group’s pension obligations are linked to inflation,
Administrative expenses (16) (13) (9)
exposed to a number of risks, the most significant of which are and higher inflation will lead to higher liabilities (although, in most
detailed below. cases, caps on the level of inflationary increases are in place to Exchange differences on foreign schemes - - (1)
protect the schemes against high inflation). As noted above, the Employer contributions 231 262 287
Asset volatility schemes hold a significant proportion of assets in index-linked Member contributions 2 2 4
gilts, together with other inflation hedging instruments and also
Benefits paid (545) (617) (988)
The schemes’ liabilities are calculated using a discount rate set assets that are more closely correlated with inflation. However,
Plan settlement - - (21)
with reference to corporate bond yields; if the schemes’ assets an increase in inflation may still create a deficit or increase an
underperform against these corporate bonds, this will create or existing deficit to some degree. Fair value of schemes’ assets at end of year 8,168 7,981 7,882
increase a deficit. The defined benefit schemes hold a significant
proportion of equity-type assets, which are expected to Life expectancy The actual return on the schemes’ assets for the year ended 31 March 2020 was £515 million (2019: £465 million, 2018: £102
outperform corporate bonds in the long-term although introduce million).
volatility and risk in the short-term. The majority of the schemes’ obligations are to provide benefits
for the life of the member, so increases in life expectancy will Amounts recognised in the consolidated income statement consist of:
The UK schemes hold a substantial level of index-linked gilts and result in an increase in the schemes’ liabilities. This is particularly
other inflation and interest rate hedging instruments in order to significant in the UK defined benefit schemes, where inflationary
reduce the volatility of assets compared to the liability value, increases result in higher sensitivity to changes in life expectancy. Year ended 31 March (£ millions) 2020 2019 2018
although these will lead to asset value volatility.
Current service cost 133 158 217
The tables on the following pages set out the disclosures
As the schemes mature, the Group intends to reduce the level of pertaining to the retirement benefit amounts recognised in the Past service cost/(credit) 4 42 (437)
investment risk by investing more in assets for which expected consolidated financial statements prepared in accordance with Administrative expenses 16 13 9
income is a better match for the expected benefit outgo. IAS 19: Net interest cost (including onerous obligations) 13 8 23
Components of defined benefit cost/(income) recognised in the
166 221 (188)
consolidated income statement

Amounts recognised in the consolidated statement of comprehensive income consist of: For the valuation at 31 March 2020, the mortality assumptions • For the Jaguar Executive Pension Plan, an average scaling
used are the Self-Administered Pension Schemes (‘SAPS’) factor of 94 per cent has been used for male members and
mortality base table, in particular S2PxA tables (“Light” tables an average scaling factor of 84 per cent has been used for
for members of the Jaguar Executive Pension Plan). female members.
Actuarial (losses)/gains arising from:
• For the Jaguar Pension Plan, scaling factors of 111 per cent For the valuation at 31 March 2018, the mortality assumptions
Changes in demographic assumptions (7) 49 210
to 117 per cent have been used for male members and used were the SAPS mortality base table, in particular S2PxA
Changes in financial assumptions 526 (544) 353
scaling factors of 101 per cent to 112 per cent have been tables (“Light” tables for members of the Jaguar Executive
Experience adjustments 139 (32) 99 used for female members. Pension Plan).
Remeasurement gain/(loss) on the return of schemes' assets, excluding
325 257 (116)
amounts included in interest income
• For the Land Rover Pension Scheme, scaling factors of 107 • For the Jaguar Pension Plan, scaling factors of 113 per cent
Remeasurement gain/(loss) on net defined benefit obligation 983 (270) 546 per cent to 111 per cent have been used for male members to 119 per cent have been used for male members and
and scaling factors of 101 per cent to 109 per cent have scaling factors of 102 per cent to 114 per cent have been
been used for female members. used for female members.
Amounts recognised in the consolidated balance sheet consist of:
• For the Jaguar Executive Pension Plan, an average scaling • For the Land Rover Pension Scheme, scaling factors of 108
factor of 94 per cent has been used for male members and per cent to 113 per cent have been used for male members
an average scaling factor of 84 per cent has been used for and scaling factors of 102 per cent to 111 per cent have
Present value of unfunded defined benefit obligations (2) (2) (1) female members. been used for female members.
Present value of funded defined benefit obligations (7,786) (8,646) (8,319)
For the valuation at 31 March 2019, the mortality assumptions • For the Jaguar Executive Pension Plan, an average scaling
Fair value of schemes' assets 8,168 7,981 7,882 used were the SAPS mortality base table, in particular S2PxA factor of 95 per cent has been used for male members and
Net retirement benefit obligation 380 (667) (438) tables (“Light” tables for members of the Jaguar Executive an average scaling factor of 85 per cent has been used for
Presented as non-current asset 408 - - Pension Plan). female members.
Presented as non-current liability (28) (667) (438)
• For the Jaguar Pension Plan, scaling factors of 112 per cent For the 2020 year end calculations there is an allowance for
to 118 per cent have been used for male members and future improvements in line with the CMI (2019) projections and
The most recent valuations of the defined benefit schemes for better incorporate the interaction between inflation volatility scaling factors of 101 per cent to 112 per cent have been an allowance for long-term improvements of 1.25 per cent per
accounting purposes were carried out at 31 March 2020 by a and the level of the cap. The revised model is in line with the used for female members. annum and a smoothing parameter of 7.5, (2019: CMI (2018)
qualified independent actuary. The present value of the defined existing model used for increases to pensions in payment. projections with 1.25 per cent per annum improvements and a
benefit liability, and the related current service cost and past • For the Land Rover Pension Scheme, scaling factors of 107 smoothing parameter of 7.5, 2018: CMI (2017) projections with
service cost, were measured using the projected unit credit In addition, in order to reflect potential changes in future RPI per cent to 112 per cent have been used for male members 1.25 per cent per annum improvements).
method. The asset valuations are taken from the asset custodian (related to the Government’s consultation on RPI Reform), the and scaling factors of 101 per cent to 109 per cent have
for each scheme together with the balance of the Trustee bank assumed difference between RPI and CPI inflation was reduced been used for female members.
accounts. from 1% p.a. to 0.75% p.a.
Benefits accruing for active members of the UK DB schemes are The combined impact of the two inflation related changes noted
revalued each year whilst in service in line with CPI inflation plus above was to reduce the UK pension liability by £91 million. The assumed life expectations on retirement at age 65 are:
0.5% per annum, but capped at 2.5% - this level of increase is
referred to as “CARE revaluation”. As at 31 March 2020, based The principal assumptions used in accounting for the pension
on advice from the Group’s actuarial advisor, Mercer, the Group schemes are set out below:
modified its approach to deriving the CARE revaluation rate to As at 31 March (years) 2020 2019 2018
Retiring today:
Males 21.0 21.0 21.3
Year ended 31 March (%) 2020 2019 2018
Females 23.2 23.2 23.4
Discount rate 2.4% 2.4% 2.7% Retiring in 20 years:
Expected rate of increase in benefit revaluation of covered employees 2.0% 2.4% 2.3% Males 22.5 22.4 22.5
RPI inflation rate 2.6% 3.2% 3.1% Females 25.2 25.1 25.1
Whilst salary inflation is no longer used in the calculation of the Projected Benefit Obligation or Service Cost the Group’s assump-
tion for this, on average over the medium term, has reduced from CPI +0.5% to CPI as at 31 March 2020.

A past service cost of £4 million has been recognised in the year retirement benefits would be calculated each year and revalued The fair value of schemes’ assets is represented by the following major categories
ended 31 March 2020. This reflects benefit improvements for until retirement in line with a prescribed rate rather than based
certain members as part of the Group restructuring programme. upon a member’s final salary at retirement. As at 31 March 2020 2019 2018
(£ millions)
A past service cost of £42 million was recognised in the year The sensitivity analysis below is based on a change in an Quoted* Unquoted Total % Quoted* Unquoted Total % Quoted* Unquoted Total %
ended 31 March 2019. This reflects benefit improvements for assumption while holding all other assumptions constant. In Equity
certain members as part of the Group restructuring programme practice, this is unlikely to occur, and changes in some of the instruments
and a past service cost following a High Court ruling in October assumptions may be correlated. When calculating the sensitivity Information
2018. As a result of the ruling, pension schemes are required to of the defined benefit obligation to significant actuarial technology 124 - 124 1% 79 - 79 1% 132 - 132 2%
equalise male and female members’ benefits for the inequalities assumptions, the same method (present value of the defined Energy 10 - 10 - 34 - 34 1% 56 - 56 1%
within guaranteed minimum pension (‘GMP’) earned between benefit obligation calculated with the projected unit credit Manufacturing 70 - 70 1% 58 - 58 1% 96 - 96 1%
17 May 1990 and 5 April 1997. The Group historically made method at the end of the reporting period) has been applied Financials 45 - 45 1% 91 - 91 1% 151 - 151 2%
no assumptions for the equalisation of GMP and therefore as when calculating the pension liability recognised within the Other 249 - 249 3% 251 - 251 3% 417 - 417 5%
considered the change to be a plan amendment. consolidated balance sheet. 498 - 498 6% 513 - 513 7% 852 - 852 11%
Debt
A past service credit of £437 million was recognised in the The methods and types of assumptions used in preparing the instruments
year ended 31 March 2018 after the Group approved and sensitivity analysis did not change compared to previous periods. Government 1,944 - 1,944 24% 2,509 - 2,509 31% 2,524 - 2,524 32%
communicated to its defined benefit schemes’ members that the Corporate
bonds
defined benefit schemes’ rules were to be amended with effect
(investment
from 6 April 2017. As a result, among other changes, future
grade) 1,245 348 1,593 19% 149 1,694 1,843 23% 20 1,836 1,856 24%
Corporate
bonds (Non
Assumption Change in assumption Impact on scheme liabilities Impact on service cost investment
grade) - 750 750 9% - 613 613 8% - 584 584 7%
Discount rate Increase/decrease by 0.25% Decrease/increase by c.£390 million Decrease/increase by £7 million 3,189 1,098 4,287 52% 2,658 2,307 4,965 62% 2,544 2,420 4,964 63%
Property
Inflation rate Increase/decrease by 0.25% Increase/decrease by c.£230 million Increase/decrease by £3 million
funds
Mortality Increase/decrease by 1 year Increase/decrease by c.£280 million Increase/decrease by £4 million UK - 273 273 3% - 244 244 3% - 165 165 2%
Other - 239 239 3% - 229 229 3% - 160 160 2%
- 512 512 6% - 473 473 6% - 325 325 4%
Cash and cash
equivalents 678 - 678 8% 210 - 210 3% 218 - 218 3%
Other
Hedge funds - 475 475 6% - 310 310 4% - 356 356 4%
Private
markets - 562 562 7% 4 336 340 4% 2 252 254 3%
Alternatives - 594 594 7% 16 810 826 10% 470 214 684 9%
- 1,631 1,631 20% 20 1,456 1,476 18% 472 822 1,294 16%
Derivatives
Foreign
exchange
contracts - (35) (35) - - 16 16 - - 1 1 -
Interest rate
and inflation
swaps - 545 545 7% - 328 328 4% - 228 228 3%
Equity
protection
derivatives - 52 52 1% - - - - - - - -
- 562 562 8% - 344 344 4% - 229 229 3%
Total 4,365 3,803 8,168 100% 3,401 4,580 7,981 100% 4,086 3,796 7,882 100%
*Quoted prices for identical assets or liabilities in active markets.
As at 31 March 2020, the schemes held Gilt Repos. The net value for the Repo transactions is £2,639 million at 31 March 2020
of these transactions is included in the value of government (2019: £1,528 million, 2018: £1,287 million).
bonds in the table ablove. The value of the funding obligation

Due to the economic effects of actions taken in response to the to pay £160 million to its defined benefit schemes, in total, for liabilities of £44 million (2019: £41 million, 2018: £42 million). outstanding commitment of CNY 1,525 million translates to
COVID-19 disease there is a higher degree of uncertainty in the the year ended 31 March 2021 (allowing for the deferral). These mainly relate to tax audits and tax litigation claims. £174 million at the 31 March 2020 exchange rate.
valuations placed on some of the “unquoted” assets including
property assets. In some cases the additional uncertainty Defined contribution schemes Commitments At each of 31 March 2019 and 31 March 2018, the outstanding
will be small, however some managers have reported material commitment was CNY 2,125 million (£243 million and £241
uncertainty in their valuations. The directors consider these The Group’s contribution to defined contribution schemes for the The Group has entered into various contracts with vendors million at the respective period end exchange rates) restated
valuations to be the best estimate of the valuation of these year ended 31 March 2020 was £86 million (2019: £93 million, and contractors for the acquisition of plant and equipment and to reflect an additional CNY 1,500 million that was committed
investments, but there is a higher degree of uncertainty 2018: £77 million). various civil contracts of capital nature aggregating to £1,217 during the year ended 31 March 2017.
compared to previous years. million (2019: £1,054 million, 2018: £853 million) and £14
33 Commitments and contingencies million (2019: £20 million, 2018: £15 million) relating to the The Group’s share of capital commitments of its joint venture at
Private Equity holdings have been measured using the most acquisition of intangible assets. 31 March 2020 is £69 million (2019: £151 million, 2018: £159
recent valuations, adjusted for cash and currency movements In the normal course of business, the Group faces claims and million) and contingent liabilities of its joint venture at 31 March
between the last valuation date and 31 March 2020. The latest assertions by various parties. The Group assesses such claims Commitments and contingencies also includes £376 million 2020 is nil (2019: nil, 2018: £1 million).
valuations for these assets precede the negative impact of the and assertions and monitors the legal environment on an ongoing (2019: £222 million, 2018: £149 million) relating to contractual
COVID-19 pandemic on financial markets. Given the movements basis, with the assistance of external legal counsel wherever claims and commitments. The timing of any outflow will vary as 34 Capital management
in listed equity markets, the valuation of Private Equity holdings necessary. The Group records a liability for any claims where a and when claims are received and settled, which is not known
may vary significantly. The value of the Private Equity holdings in potential loss is probable and capable of being estimated and with certainty. The Group’s objectives when managing capital are to ensure
the JLR UK Plans included above is £342 million as at 31 March discloses such matters in its financial statements, if material. For the going concern operation of all subsidiary companies within
2020. potential losses that are considered possible, but not probable, The remaining financial commitments, in particular the purchase the Group and to maintain an efficient capital structure to
the Group provides disclosure in the consolidated financial commitments and guarantees, are of a magnitude typical for the support ongoing and future operations of the Group and to meet
Jaguar Land Rover contributes towards the UK defined benefit statements but does not record a liability unless the loss industry. shareholder expectations.
schemes. The 5 April 2018 statutory funding valuations were becomes probable. Such potential losses may be of an uncertain
completed in December 2018. As a result of these valuations it timing and/or amount. Inventory of £127 million (2019, 2018: £nil), trade receivables The Group issues debt, primarily in the form of bonds, to meet
is intended to eliminate the pension scheme funding deficits over with a carrying amount of £nil (2019: £114 million, 2018: £155 anticipated funding requirements and maintain sufficient
the 10 years to 31 March 2028. There is currently no additional The following is a description of claims and contingencies where million), property, plant and equipment with a carrying amount liquidity. The Group also maintains certain undrawn committed
liability over the projected benefit obligation (based on current a potential loss is possible, but not probable. Management of £nil (2019, 2018: £nil) and restricted cash with a carrying credit facilities to provide additional liquidity. These borrowings,
legal advice the Group will not be required to recognise an believes that none of the contingencies described below, either amount of £nil (2019, 2018: £nil) are pledged as collateral/ together with cash generated from operations, are loaned
additional obligation in the future), and no restrictions on the individually or in aggregate, would have a material adverse effect security against the borrowings and commitments. internally or contributed as equity to certain subsidiaries as
Group’s ability to realise any surplus in the scheme. JLR has on the Group’s financial condition, results of operations or cash required. Surplus cash in subsidiaries is pooled (where practicable)
taken legal advice considering the documentation of the UK flows. Stipulated within the joint venture agreement for Chery Jaguar and invested to satisfy security, liquidity and yield requirements.
schemes and the regulatory environment. This confirmed the Land Rover Automotive Co. Ltd, and subsequently amended by a
recoverability of any surplus in the scheme and JLR has based its Litigation and product related matters change to the Articles of Association of Chery Jaguar Land Rover The capital structure and funding requirements are regularly
accounting judgement on this advice. Automotive Co. Ltd. is a commitment for the Group to contribute monitored by the JLR plc Board to ensure sufficient liquidity
The Group is involved in legal proceedings, both as plaintiff and a total of CNY 5,000 million of capital. Of this amount, CNY is maintained by the Group. All debt issuance and capital
In line with the schedule of contributions agreed following the as defendant. There are claims and potential claims of £40 3,475 million has been contributed as at 31 March 2020. The distributions are approved by the JLR plc Board.
2018 statutory funding valuations, the current ongoing Group million (2019: £17 million, 2018: £17 million) against the Group
contribution rate for defined benefit accrual has reduced to c.21 which management has not recognised, as settlement is not
per cent of pensionable salaries in the UK, reflecting the 2017 considered probable. These claims and potential claims pertain
benefit restructure. to motor accident claims, consumer complaints, employment As at 31 March (£ millions) 2020 2019 2018
and dealership arrangements, replacement of parts of vehicles
Short-term debt 599 884 655
Deficit contributions are paid in line with the schedule of and/or compensation for deficiency in the services by the Group
contributions at a rate of £60 million per year until 31 March or its retailers. Long-term debt 5,285 3,627 3,076
2024 followed by £25 million per year until 31 March 2028, Total debt* 5,884 4,511 3,731
although as part of JLR’s response to the COVID-19 disease The Group has provided for the estimated cost of repair Equity attributable to shareholders 6,548 5,973 9,976
JLR has agreed to defer all of its contributions payable for April, following the passenger safety airbag issue in the United States,
Total capital 12,432 10,484 13,707
May and June 2020 until the year ending 31 March 2022. This China, Canada, Korea, Taiwan, Australia and Japan. The Group
agreement is reflected in an updated Schedule of Contributions recognises that there is a potential risk of further recalls in the *Total debt includes lease obgliations of £541 million (2019: £31 million, 2018: £19 million)
dated 29 April 2020. future; however, the Group is unable at this point in time to
reliably estimate the amount and timing of any potential future
The average duration of the benefit obligations at 31 March costs associated with this warranty issue. 35 Financial instruments The details of significant accounting policies, including the
2020 is 19.0 years (2019: 19.0 years, 2018: 20.4 years). criteria for recognition, the basis of measurement and the basis
Other taxes and duties This section gives an overview of the significance of financial on which income and expenses are recognised, in respect of each
The expected net periodic pension cost for the year ended 31 instruments for the Group and provides additional information class of financial asset, financial liability and equity instrument,
March 2021 is expected to be £140 million. The Group expects Contingencies and commitments include tax contingent on balance sheet items that contain financial instruments. are disclosed in note 2.

(A) Financial assets and liabilities The following table shows the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2018
under IAS 39:
The following table shows the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2020:
Loans and Derivatives in Fair value through
Held to receivables and Total carrying Total fair
Fair Value Through Profit and Loss (£ millions) hedging
maturity other financial profit and loss value value
relationship
liabilities
Amortised Financial Derivatives other than Derivatives in Total carrying Total fair
(£ millions) cost assets in hedging relationship hedging relationship value value Short-term deposits and other investments 36 1,995 - - 2,031 2,031
Cash and cash equivalents 2,271 - - - 2,271 2,271 Other financial assets - current - 230 185 79 494 494
Short-term deposits and other investments 1,393 - - - 1,393 1,393 Other financial assets - non-current - 128 266 20 414 414
Trade receivables 833 - - - 833 833 Total financial assets 36 2,353 451 99 2,939 2,939
Investments - 37 - - 37 37
Other financial assets - current 142 - 153 88 383 383
Short-term borrowings* 652 - - 652 655
Other financial assets - non-current 115 - 9 133 257 257
Total financial assets 4,754 37 162 221 5,174 5,174 Long-term borrowings** 3,060 - - 3,060 3,090
Other financial liabilities - current 521 585 83 1,189 1,189
Accounts payable 6,499 - - - 6,499 6,499 Other financial liabilities - non-current 24 250 7 281 281
Short-term borrowings 526 - - - 526 512
Total financial liabilities 4,257 835 90 5,182 5,215
Long-term borrowings* 4,817 - - - 4,817 3,859
Other financial liabilities - current 620 - 204 249 1,073 1,073 *Included within short-term borrowings shown in other financial liabilities are foreign currency denominated borrowings totalling £498 million designated as the hedging instrument in a cash flow
hedge against forecast revenue. The 2018 comparative balances have been represented, in order to fully reflect the split between short-term and long-term borrowings.
Other financial liabilities - non-current 468 - 48 262 778 778 **Included in the long-term borrowings shown in other financial liabilities is £342 million that is designated as the hedged item in a fair value hedge relationship. Included within this figure is £10
Total financial liabilities 12,930 - 252 511 13,693 12,721 million of fair value adjustments as a result of the hedge relationship. Also included are foreign currency denominated borrowings totalling £712 million designated as the hedging instrument in a
cash flow hedge against forecast revenue. The 2018 comparative balances have been represented, in order to fully reflect the split between short-term and long-term borrowings.

*Included in the long-term borrowings shown in other financial liabilities is £891 million that is designated as the hedged item in a fair value hedge relationship. Included within this figure is £45
million of fair value adjustments as a result of the hedge relationship.
Offsetting
The following table shows the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2019: Certain financial assets and financial liabilities are subject to Derivative financial assets and financial liabilities are subject to
offsetting where there is currently a legally enforceable right master netting arrangements whereby in the case of insolvency,
Fair Value Through Profit and Loss
to set off recognised amounts and the Group intends to either derivative financial assets and financial liabilities can be settled
settle on a net basis or to realise the asset and settle the liability on a net basis.
Amortised
cost and Financial Derivatives other than Derivatives in Total carrying Total fair simultaneously.
(£ millions) in hedging hedging
other financial assets value value
relationship relationship
liabilities
Cash and cash equivalents 2,747 - - - 2,747 2,747

Short-term deposits and other investments 1,028 - - - 1,028 1,028
Trade receivables 1,362 - - - 1,362 1,362
Investments - 69 - - 69 69
Other financial assets - current 181 - 31 102 314 314
Other financial assets - non-current 116 - 11 43 170 170
Total financial assets 5,434 69 42 145 5,690 5,690
Accounts payable 7,083 - - - 7,083 7,083

Short-term borrowings* 881 - - - 881 877
Long-term borrowings** 3,599 - - - 3,599 3,245
Other financial liabilities - current 519 - 97 426 1,042 1,042
Other financial liabilities - non-current 29 - 15 266 310 310
Total financial liabilities 12,111 - 112 692 12,915 12,557
*Included within short-term borrowings shown in other financial liabilities are foreign currency denominated borrowings totalling £768 million designated as the hedging instrument in a cash flow
hedge against forecast revenue.
**Included in the long-term borrowings shown in other financial liabilities is £813 million that is designated as the hedged item in a fair value hedge relationship. Included within this figure is £5
million of fair value adjustments as a result of the hedge relationship.

The following table discloses the amounts that have been offset in arriving at the consolidated balance sheet presentation and the Fair value hierarchy There were no transfers in the year ended 31 March 2018.
amounts that are available for offset only under certain conditions as at 31 March 2020:
Financial instruments held at fair value are required to be The financial instruments that are measured subsequent to
measured by reference to the following levels: initial recognition at fair value are classified as Level 2 fair value
Amounts subject to a master netting arrangement measurements, as defined by IFRS 13, being those derived from
• Quoted prices in an active market (Level 1): this level of inputs other than quoted prices that are observable. These
Gross Gross amount of Net amount Cash Net amount hierarchy includes financial instruments that are measured valuation techniques maximise the use of observable market
£ millions amount recognised set presented in the Financial collateral after
off in the balance instruments (received) / by reference to quoted prices (unadjusted) in active markets data where it is available and rely as little as possible on entity-
recognised sheet balance sheet pledged offsetting
for identical assets or liabilities; specific estimates. Fair values of forward derivative financial
Financial assets assets and liabilities are estimated by discounting expected
Derivative financial assets 383 - 383 (377) - 6 • Valuation techniques with observable inputs (Level 2): this future contractual cash flows using prevailing market interest
Cash and cash equivalents 2,981 (710) 2,271 - - 2,271 level of hierarchy includes financial assets and liabilities rate curves from Reuters. Commodity swap contracts are
3,364 (710) 2,654 (377) - 2,277 measured using inputs other than quoted prices included similarly fair valued by discounting expected future contractual
Financial liabilities within Level 1 that are observable for the asset or liability, cash flows. Option contracts on foreign currency are entered into
Derivative financial liabilities 763 - 763 (377) - 386 either directly (i.e. as prices) or indirectly (i.e. derived from on a zero cost collar basis and fair value estimates are calculated
Short-term borrowings 1,236 (710) 526 - - 526 prices); and from standard Black-Scholes options pricing methodology, using
1,999 (710) 1,289 (377) - 912 prevailing market interest rates and volatilities. The estimate
• Valuation techniques with significant unobservable inputs of fair values for cross-currency swaps is calculated using
(Level 3): this level of hierarchy includes financial assets discounted estimated future cash flows. Estimates of the future
The following table discloses the amounts that have been offset in arriving at the consolidated balance sheet presentation and the and liabilities measured using inputs that are not based on floating-rate cash flows are based on quoted swap rates, future
amounts that are available for offset only under certain conditions as at 31 March 2019: observable market data (unobservable inputs). Fair values prices and interbank borrowing rates (“LIBOR”).
are determined in whole or in part using a valuation model
based on assumptions that are neither supported by prices Additionally, a credit valuation adjustment/debit value
Amounts subject to a master netting arrangement from observable current market transactions in the same adjustment is taken on derivative financial assets and liabilities
instrument nor based on available market data. and is calculated by discounting the fair value gain or loss on
Gross Gross amount of Net amount Cash Net amount
recognised set Financial collateral the financial derivative using credit default swap (“CDS”) prices
£ millions amount off in the balance presented in the instruments (received) / after
recognised balance sheet offsetting Of the financial assets held at 31 March 2020 and classified as quoted for the counterparty or Jaguar Land Rover respectively.
sheet pledged
Level 3, 93 per cent (2019: 91 per cent, 2018: 97 per cent) were CDS prices are obtained from Reuters.
Financial assets
valued using recent transaction values and 7 per cent (2019:
Derivative financial assets 187 - 187 (187) - - 9 per cent, 2018: 3 per cent) were valued using an alternative The long-term borrowings are held at amortised cost. The fair
Cash and cash equivalents 3,175 (428) 2,747 - - 2,747 technique. value of the listed debt for disclosure purposes is determined
3,362 (428) 2,934 (187) - 2,747
using Level 1 valuation techniques, based on the closing price
Financial liabilities Recent transaction values as at 31 March 2020 on the Luxembourg Stock Exchange
Derivative financial liabilities 804 - 804 (187) - 617 multilateral trading facility (“EURO MTF”) market, for unsecured
Short-term borrowings 1,309 (428) 881 - - 881 The pricing of recent investment transactions is the main input listed bonds. For bank loans, Level 2 valuation techniques are
2,113 (428) 1,685 (187) - 1,498 of valuations performed by the Group. The Group’s policy is to used.
use observable market data where possible for its valuations
and, in the absence of portfolio company earnings or revenue Fair values of cash and cash equivalents, short-term deposits,
The following table discloses the amounts that have been offset in arriving at the consolidated balance sheet presentation and the to compare, or of relevant comparable businesses’ data, recent trade receivables and payables, unsecured listed bonds and
amounts that are available for offset only under certain conditions as at 31 March 2018: transaction prices represent the most reliable observable inputs. other financial assets and liabilities (current and non-current
excluding derivatives) are assumed to approximate to cost due
Alternative valuation methodologies to the short term maturing of the instruments and as the impact
Amounts subject to a master netting arrangement
of discounting is not significant.
Gross Gross amount of Net amount Cash Net amount Alternative valuation methodologies are used by the Group for
£ millions amount recognised set presented in the Financial collateral after
off in the balance instruments (received) / reasons specific to individual assets. At 31 March 2020, the Other investments that are not equity accounted for are
recognised sheet balance sheet pledged offsetting
alternative technique used was net asset value, representing recognised at fair value. Where there is an active quoted market,
Financial assets 100 per cent of alternatively valued assets. the fair value is determined using Level 1 valuation techniques,
Derivative financial assets 550 - 550 (531) - 19 based on the closing price at year end. The valuation as at 31
Cash and cash equivalents 2,806 (180) 2,626 - - 2,626 There has been no change in the valuation techniques adopted in March 2020 is £17 million (2019: £46 million, 2018: £nil).
3,356 (180) 3,176 (531) - 2,645 either current or prior financial years as presented. There were no Where there is no active quoted market, the fair values have
Financial liabilities transfers between fair value levels in the current financial year. In been determined using Level 3 valuation techniques and the
Derivative financial liabilities 925 - 925 (531) - 394 the previous financial year ended 31 March 2019, the investment closing valuation as at 31 March 2020 is £20 million (2019: £23
Short-term borrowings 832 (180) 652 - - 652 in Lyft, Inc. (note 15) transferred from Level 3 to Level 1 as a million, 2018: £28 million). The fair value loss recognised in the
1,757 (180) 1,577 (531) - 1,046 result of the Lyft, Inc. initial public offering on 29 March 2019. consolidated income statement for Level 3 investments for the

year ended 31 March 2020 is £1 million (2019: gain of £2 million, the consolidated statement of comprehensive income, the The following table sets forth information relating to foreign currency exposure as at 31 March 2018:
2018: gain of £2 million). consolidated balance sheet, the consolidated statement of
changes in equity and the consolidated cash flow statement,
Management uses its best judgement in estimating the where any transaction references more than one currency or
As at 31 March 2018 (£ millions) US Dollar Chinese Yuan Euro Others
fair value of its financial instruments. However, there are where assets/liabilities are denominated in a currency other than
inherent limitations in any estimation technique. Therefore, for the functional currency of the respective consolidated entities. Financial assets 1,315 540 1,372 478
substantially all financial instruments, the fair value estimates Financial liabilities (3,044) (580) (3,344) (421)
presented above are not necessarily indicative of all the amounts Considering the countries and economic environment in which Net exposure (liability)/asset (1,729) (40) (1,972) 57
that the Group could have realised in a sales transaction as of the Group operates, its operations are subject to risks arising 10% appreciation/depreciation of the currency would result in
the respective dates. The estimated fair value amounts as at from fluctuations in exchange rates in those countries. The risks additional (loss)/gain:
31 March 2020, 2019 and 2018 have been measured as at primarily relate to fluctuations in US Dollar, Chinese Yuan and In other comprehensive income (117)/117 - - n/a
the respective dates. As such, the fair values of these financial Euro against the functional currency of the Company and its In the consolidated income statement (52)/52 (4)/4 (197)/197 n/a
instruments subsequent to the respective reporting dates may subsidiaries.
be different from the amounts reported at each year end.
Foreign exchange risk on future transactions is mitigated through
(B) Financial risk management the use of derivative contracts. The Group is also exposed to Commodity price risk to GBP floating-rate debt. The derivative instruments and the
fluctuations in exchange rates that impact the valuation of foreign foreign currency fixed-rate debt are designated in fair value and
The Group is exposed to foreign currency exchange rate, currency denominated assets and liabilities of its National Sales The Group is exposed to commodity price risk arising from the cash flow hedging relationships. Further detail is given in section
commodity price, interest rate, liquidity and credit risks. The Companies and also foreign currency denominated balances purchase of certain raw materials such as aluminium, copper, (C) below.
Group has a risk management framework in place, which on the Group’s consolidated balance sheet at each reporting platinum and palladium. This risk is mitigated through the use
monitors all of these risks as discussed below. This framework is period end. In addition to the derivatives designated in hedging of derivative contracts and fixed-price contracts with suppliers. The risk estimates provided assume a parallel shift of 100 basis
approved by the JLR plc Board. relationships as detailed in section (C), the Group enters into The derivative contracts are not hedge accounted under IFRS 9 points in interest rates across all yield curves. This calculation
foreign currency contracts as economic hedges of recognised but are instead measured at fair value through profit or loss. also assumes that the change occurs at the balance sheet date
Foreign currency exchange rate risk foreign currency debt. and has been calculated based on risk exposures outstanding
The total fair value loss on commodities of £74 million (2019: as at that date. The year-end balances are not necessarily
The fluctuation in foreign currency exchange rates may have The following table sets forth information relating to foreign £9 million gain, 2018: £28 million gain) has been recognised in representative of the average debt outstanding during the year.
a potential impact on the consolidated income statement, currency exposure as at 31 March 2020: “Foreign exchange (loss)/gain and fair value adjustment” in the
consolidated income statement. The amounts reported do not As at 31 March 2020, short-term borrowings of £225 million
reflect the purchasing benefits received by the Group (which are (2019: £114 million, 2018: £155 million) and long-term
included within “Material and other cost of sales”). borrowings of £1,260 million (2019: £768 million, 2018: £nil)
As at 31 March 2020 (£ millions) US Dollar Chinese Yuan Euro Others were subject to a variable interest rate. An increase/decrease
A 10 per cent appreciation/depreciation of all commodity prices of 100 basis points in interest rates at the balance sheet date
Financial assets 1,785 484 1,205 409 underlying such contracts would have resulted in a gain/loss of would result in an impact of £15 million (2019: £9 million, 2018:
Financial liabilities (2,791) (523) (4,312) (412) £49 million (2019: £53 million, 2018: £50 million). £2 million) in the consolidated income statement and £nil (2019
Net exposure liability (1,006) (39) (3,107) (3) and 2018: £nil) in other comprehensive income.
10% appreciation/depreciation of the currency would result in Interest rate risk
additional (loss)/gain:
The Group’s sensitivity to interest rates has increased during
In other comprehensive income - - - n/a
Interest rate risk is the risk that changes in market interest rates the current year mainly due to the increase in variable rate debt
In the consolidated income statement (101)/101 (4)/4 (311)/311 n/a
will lead to changes in interest income and expense for the Group. instruments.
In addition to issuing long-term fixed-rate bonds, the Group Liquidity risk

The following table sets forth information relating to foreign currency exposure as at 31 March 2019: has other facilities in place that are primarily used to finance
working capital and are subject to variable interest rates. When Liquidity risk is the risk that the Group will not be able to meet its
undertaking a new debt issuance, the JLR plc Board will consider financial obligations as they fall due.
As at 31 March 2019 (£ millions) US Dollar Chinese Yuan Euro Others the fixed/floating interest rate mix of the Group, the outlook for
future interest rates and the appetite for certainty of funding The Group’s policy on liquidity risk is to maintain sufficient
Financial assets 2,383 219 1,377 327 costs. liquidity in the form of cash and undrawn borrowing facilities to
Financial liabilities (3,349) (424) (3,524) (385) meet the Group’s operating requirements with an appropriate
Net exposure liability (966) (205) (2,147) (58) The Group uses cross-currency interest rate swaps to convert level of headroom.
10% appreciation/depreciation of the currency would result in some of its issued debt from foreign denominated fixed rate debt
additional (loss)/gain:
In other comprehensive income (76)/76 - - n/a
In the consolidated income statement (21)/21 (21)/21 (215)/215 n/a

The following are the undiscounted contractual maturities of financial liabilities, including estimated interest payments: The Group has reviewed trade and other receivables not yet due Trade and other receivables past due and impaired are set out
and not impaired and no material issues have been identified. below:
Carrying Contractual 1 year 1 to <2 2 to <5 5 years
As at 31 March 2020 (£ millions)
amount cash flows or less years years and over
As at 31 2020 2020 2020 2019 2019 2019 2018 2018 2018
Financial liabilities March (£ Gross Impairment Expected Gross Impairment Expected Gross Impairment Expected
millions) Loss Rate Loss Rate Loss Rate
Accounts payable 6,499 6,499 6,499 - - -
Long-term borrowings and interest thereon 4,817 5,828 218 739 3,430 1,441 Not yet due 675 2 -% 1,190 1 -% 1,413 2 -%
Short-term borrowings and interest thereon 526 536 536 - - - Overdue <
3 months 141 1 1% 173 - -% 216 - -%
Lease obligations 541 903 112 90 208 493
Overdue
Other financial liabilities 547 513 498 11 4 -
>3<6 mon-
Derivative financial instruments 763 894 491 272 131 - ths 10 1 10% 3 - -% 1 1 100%
Total contractual maturities 13,693 15,173 8,354 1,112 3,773 1,934 Overdue >6
months 18 7 39% 14 11 79% 48 47 98%
Total 844 11 1,380 12 1,678 50
Carrying Contractual 1 year or 1 to <2 2 to <5 5 years
As at 31 March 2019 (£ millions)
amount cash flows less years years and over
Financial liabilities Included within trade receivables is £nil (2019: £114 million, Commodity derivatives are not hedge accounted. Foreign
Accounts payable 7,083 7,083 7,083 - - - 2018: £155 million) of receivables that are part of a debt factoring currency forward contracts, foreign currency options and foreign
Long-term borrowings and interest thereon 3,599 5,186 946 449 2,232 1,559 arrangement. These assets do not qualify for de-recognition due currency denominated borrowings may be designated as hedging
Short-term borrowings and interest thereon 881 881 881 - - - to the recourse arrangements in place. The related liability of instruments in a cash flow hedge relationship against forecast
Finance lease obligations 31 62 7 7 15 33 £nil (2019: £114 million, 2018: £155 million) is in short-term foreign currency transactions to mitigate foreign currency
borrowings. Both the asset and associated liability are classified exchange risk associated with those transactions. In addition,
Derivative financial instruments 804 1,076 592 313 144 27
in amortised cost and other financial liabilities respectively. the Group uses cross-currency interest rate swaps to hedge its
Total contractual maturities 12,915 14,842 10,036 781 2,406 1,619
foreign currency exchange risk associated with recognised long-
Off-balance sheet financial arrangements term borrowings. These instruments are designated in both cash
Carrying Contractual 1 year 1 to <2 2 to <5 5 years
As at 31 March 2018 (£ millions) flow and fair value hedging relationships.
At the end of FY20, Jaguar Land Rover Limited (a subsidiary of
Financial liabilities
the Company) had sold £392 million equivalent of receivables In all cases the Group uses a hedge ratio of 1:1. The critical terms
Accounts payable 7,614 7,614 7,614 - - -
under a $700 million factored receivables facility signed in March of the derivative contracts are aligned with those of the hedged
Long-term borrowings and interest thereon 3,060 3,638 120 824 1,686 1,008
2019. item. The Group allows a maximum hedging term of five years
Short-term borrowings and interest thereon 652 668 668 - - -
for forecast transactions. The Group’s risk management policy
Finance lease obligations 19 32 6 4 11 11
(C) Derivatives and hedge accounting allows for decreasing levels of hedging as the forecasting horizon
Derivative financial instruments 925 1,207 748 322 124 13 increases.
Total contractual maturities 12,796 13,714 9,681 1,165 1,836 1,032 The Group’s operations give rise to revenue, raw material
purchases and borrowings in currencies other than the Group’s A 10 per cent depreciation/appreciation in Sterling against
presentation currency of GBP. The Group forecasts these the foreign currency underlying contracts within the Group’s
Credit risk external credit rating. transactions over the medium term and enters into derivative derivative portfolio that are sensitive to changes in foreign
contracts to mitigate the resulting foreign currency exchange exchange rates (including the impact to the fair value adjustment
Credit risk is the risk of financial loss to the Group if a counterparty To a lesser extent the Group has an exposure to counterparties risk, interest rate risk and commodity price risk. The Group’s risk of foreign currency borrowings designated as the hedged item
to a financial instrument fails to meet its contractual obligation. on trade receivables and other financial assets. The Group seeks management strategy allows for hedge accounting when the in a fair value hedge relationship) would have resulted in the
The majority of the Group’s credit risk pertains to the risk to mitigate credit risk on sales to third parties through the use of derivatives meet the hedge accounting criteria as set out in IFRS approximate additional (loss)/gain shown in the following table:
of financial loss arising from counterparty default on cash payment at the point of delivery, credit limits, credit insurance 9 as well as the Group’s risk management objectives.
investments. and letters of credit from banks that meet internal rating criteria.
The carrying amount of financial assets represents the maximum Further, the Group considers the relevance of the COVID-19
credit exposure. None of the financial instruments of the Group pandemic to the recoverability of receivables from third parties.
result in material concentrations of credit risks. 10% depreciation in Sterling against the foreign currency:
Financial assets
In other comprehensive income (547) (273) (908)
All Group cash is invested according to strict credit criteria and
actively monitored by Group Treasury in conjunction with the None of the Group’s cash equivalents, including term deposits In the consolidated income statement 64 109 116
current market valuation of derivative contracts. To support with banks, are past due or impaired. Regarding other financial 10% appreciation in Sterling against the foreign currency:
this, the JLR plc Board has implemented an investment policy assets that are neither past due nor impaired, there were no In other comprehensive income 554 244 773
that places limits on the maximum cash investment that can be indications as at 31 March 2020 (2019 and 2018: no indications) In the consolidated income statement (36) (75) (95)
made with any single counterparty depending on their published that defaults in payment obligations will occur.

The following table sets out the change in the Group’s exposure to interest rate risk as a result of cross-currency interest rate swaps: The table below sets out the timing profile of the hedge accounted derivatives:
Foreign currency receivable Reporting currency payable Carrying value assets /

Outstanding contracts average interest rate average interest rate Outstanding contracts Average strike rate Nominal amounts
(liabilities)
% % % % % % £m £m £m £m £m £m
2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018
Cross currency interest rate swaps Cash flow hedges of foreign
< 1 year - - - - - - exchange risk on forecast
Between 1-5 years - - - - - -
transactions
Derivative instruments
>5 years 4.500 4.500 4.500 LIBOR + 3.235 LIBOR + 3.235 LIBOR + 2.033
Sell - USD
<1 year 0.7229 0.6756 0.6483 1,766 1,584 2,257 (157) (187) (178)
The following table shows the impact that would result from derivatives in fair value hedging relationships given an increase/decrease Between 1-5 years 0.7649 0.6989 0.6771 5,098 1,945 2,988 (190) (114) (55)
of 100 basis points in interest rates at the balance sheet date:
Sell - Chinese Yuan
<1 year 0.1086 0.1054 0.1018 1,601 2,132 2,984 (59) (153) (300)
As at 31 March (£ millions) 2020 2019 2018 Between 1-5 years 0.1096 0.1075 0.1051 1,189 1,299 2,582 (20) (43) (83)
100 basis points depreciation in interest rates Buy - Euro

In the consolidated income statement (7) (5) -
<1 year 0.9109 0.8823 0.8521 2,635 3,609 2,568 1 14 140
Between 1-5 years 0.9101 0.9192 0.8994 3,384 4,030 4,490 (17) (73) 143
100 basis points appreciation in interest rates
In the consolidated income statement 4 19 1
Other currencies
<1 year 905 1,800 1,748 55 2 (62)
Between 1-5 years 1,238 882 1,560 39 11 40
Cash Flow Hedges 17,816 17,281 21,177 (348) (543) (355)
Debt instruments
The Group uses foreign currency options, foreign currency forward It is anticipated that the hedged purchases will take place over denominated in foreign
contracts and recognised foreign currency borrowings as the the next one to five years, at which time the amount deferred currency
hedging instrument in cash flow hedge relationships of hedged in equity will be included in the carrying amount of the raw USD
sales and purchases. The time value of options and the foreign materials. On sale of the finished product, the amount previously < 1 year - 0.7358 0.6727 - 736 471 - (768) (498)
currency basis spread of foreign exchange forward contracts are deferred in equity and subsequently recognised in inventory Between 1-5 years - - 0.7358 - - 736 - - (712)
excluded from the hedge relationship and are recognised in other will be reclassified to material and other cost of sales in the - 736 1,207 - (768) (1,210)
comprehensive income as a cost of hedging to the extent they consolidated income statement.
relate to the hedged item (the aligned value). Additionally, the Total cash flow hedges of
foreign exchange risk on
Group uses cross-currency interest rate swaps as the hedging The foreign currency borrowings designated as the hedged item forecast transactions 17,816 18,017 22,384 (348) (1,311) (1,565)
instrument of the foreign exchange risk of recognised foreign mature in January 2026 and October 2027, at which time the
currency borrowings. amount deferred in equity will be reclassified to the consolidated Hedges of foreign exchange
income statement. risk on recognised debt
Changes in the fair value of foreign currency contracts, to the Cross currency interest rate
swaps
extent determined to be an effective cash flow hedge, are The foreign currency borrowings designated as the hedged item
USD
recognised in the consolidated statement of comprehensive mature in January 2026 and October 2027, at which time the
< 1 year - - - - - - - - -
income, and the ineffective portion of the fair value change is amount deferred in equity will be reclassified to the consolidated
Between 1-5 years - - - - - - - - -
recognised in the consolidated income statement. There is not income statement.
>5 years 0.7592 0.7592 0.7592 380 380 380 57 11 (29)
generally expected to be significant ineffectiveness from cash
flow hedges. In light of the impact of COVID-19 on forecast exposures (see
note 18 for further details), the Group reassessed existing EUR
It is anticipated that the hedged sales will take place over the hedging relationships and released amounts deferred in equity to < 1 year - - - - - - - - -
next one to five years, at which time the amount deferred in profit and loss where appropriate. Between 1-5 years - - - - - - - - -
equity will be reclassified to revenue in the consolidated income >5 years 0.8912 0.8912 - 446 446 - 3 (15) -
statement. Total cash flow hedges of
foreign exchange risk on
recognised debt 826 826 380 60 (4) (29)

The USD debt instrument used as a hedging instrument is shown The line items in the consolidated balance sheet that include The fair value of the cross-currency interest rate swaps included in “Derivatives in hedging relationship” in section (A) are as follows:
in the less than year category above as the instrument itself the above derivative instruments are “Other financial assets”
matures within one year. The amounts hedging revenue between and “Other financial liabilities”. The USD denominated debt
one and five years are £nil (2019: £359 million, 2018: £204 designated as a hedging instrument was included in “Borrowings”. As at 31 March (£ millions) 2020 2019 2018
million).
Other financial assets - current - - -
Other financial assets - non-current 60 11 -
Total financial assets 60 11 -
Other financial liabilities - current - - -
The following table sets out the effect of the Group’s cash flow hedges on the financial performance of the Group:
Other financial liabilities - non-current - (15) (29)
Total financial liabilities - (15) (29)
Year ended 31 March (£millions) 2020 2019 2018

The following amounts have been recognised in the consolidated income statement in the years ended 31 March 2020, 2019
Fair value gain/(loss) of foreign currency derivative contracts recognised in and 2018:
hedging reserves 254 (887) 1,097
Fair value gain/(loss) of foreign currency borrowings recognised in cash flow
hedging reserve 7 (103) 145
Fair value (loss)/gain of derivatives hedging foreign currency borrowings Year ended 31 March (£ millions) 2020 2019 2018
recognised in hedging reserves (2) 4 (1)
Gain/(loss) recognised in other comprehensive income in the year 259 (986) 1,241 Net (loss)/gain in the hedged item used for assessing hedge effectiveness,
Loss reclassified from cash flow hedging reserve and recognised in ‘Revenue’ taken to the consolidated income statement in ‘Foreign exchange (loss)/gain
in the income statement (565) (870) (1,389) and fair value adjustments’ (78) (29) 34
Gain reclassified from of cash flow hedging reserve and recognised in Fair value changes in the derivative instruments used in assessing hedge
‘Material and other cost of sales’ in the income statement - - 182 effectiveness, taken to the consolidated income statement in ‘Foreign
(Loss)/gain reclassified from cash flow hedging reserve and recognised exchange (loss)/gain and fair value adjustments’ 61 22 (27)
in Foreign exchange (loss)/gain and fair value adjustments’ in the income Ineffectiveness recognised in the consolidated income statement in
(17) (7) 7
statement on account of forecast transactions no longer expected to occur - (12) 7 ‘Foreign exchange (loss)/gain and fair value adjustments’
Gain/(loss) reclassified from cost of hedging reserve and recognised in Foreign
exchange (loss)/gain and fair value adjustments’ in the income statement on
account of forecast transactions no longer expected to occur 2 1 (1)
Loss reclassified to profit and loss in the year (563) (881) (1,201)
Net change in the hedged item used for assessing hedge effectiveness 172 (202) 2,195
36 Leases
Gain/(loss) on derivatives not hedge accounted, recognised in 'Foreign
exchange loss/(gain) and fair value adjustments' in the income statement 27 (18) (4)
The Group leases a number of buildings, plant and equipment, IT Some of the leases are short-term and/or low-value items. The
hardware and software assets, certain of which have a renewal Group has elected not to recognise right-of-use assets and lease
and/or purchase option in the normal course of the business. liabilities for these leases.
Fair value hedges Extension and termination options are included in a number of
leases across the Group. These are used to maximise operational There are no leases with residual value guarantees or leases not
The Group uses cross-currency interest rate swaps as the Changes in the fair value of foreign currency contracts that are flexibility in terms of managing the assets used in the Group’s yet commenced to which the Group is committed.
hedging instrument in a fair value hedge of foreign exchange and designated in fair value hedging relationships are recognised in operation. The majority of extension and termination options
interest rate risks of foreign currency denominated debt. The the consolidated income statement. Changes in the fair value held are exercisable only by the Group and not by the respective The Group has applied IFRS 16 from 1 April 2019 using the
derivatives convert foreign currency USD fixed-rate borrowings of the underlying hedged item (long term borrowings) for the lessor. The Group assesses at lease commencement whether it modified retrospective method, meaning the comparative
to GBP floating-rate debt. hedged risks are recognised in the same income statement line. is reasonably certain to exercise the extension or termination information for the years ending 31 March 2019 and 31 March
option. The Group re-assesses whether it is reasonably certain 2018 has not been restated. As a result, the comparative
to exercise options if there is a significant event or significant information provided for those fiscal periods below continues to
change in circumstances within its control. It is recognised that be accounted for in accordance with the Group’s previous lease
there is potential for lease term assumptions to change in the accounting policy under IAS 17 Leases.
future due to the effects of the COVID-19 pandemic, and this
will continue to be monitored by the Group where relevant. The
Group’s leases mature between 2020 and 2048.

Lease as a lessee Leases as a lessee under IAS 17
Information about leases for which the Group is a lessee is presented below. The future minimum non-cancellable finance lease rentals are payable as follows:
Right-of-use assets
As at 31 March (£ millions) 2019 2018
Land and Plant and Fixtures and Less than one year 7 6
£ millions Computers Vehicles Other Total
buildings equipment fittings
Between one and five years 22 15
Opening balance at 1 April 2019 501 13 57 - - 4 575 More than five years 33 11
Closing balance at 31 March 2020 483 7 56 6 13 3 568 Total lease payments 62 32
Less future finance charges (31) (13)
Depreciation charge for the year 62 8 17 3 1 1 92 Present value of lease obligations 31 19
Additions to right-of-use assets during the year ended 31 March 2020 was £83 million.
The above leases relate to amounts payable under the minimum lease payments on plant and equipment. The carrying value of these
Lease liabilities assets as at 31 March 2019 was £27 million (2018: £21 million). The future minimum non-cancellable operating lease rentals are
payable as follows:
The maturity analysis of the contractual undiscounted cash flows are as follows:
As at 31 March (£ millions) 2019 2018

As at 31 March (£ millions) 2020
Less than one year 115 91
Less than one year 112 Between one and five years 272 224
Between one and five years 298 More than five years 239 238
More than five years 493 Total lease payments 626 553
Total undiscounted lease liabilities 903
The following amounts are included in the consolidated balance sheet as at 31 March 2020: The Group leases a number of buildings, plant and equipment and IT hardware and software under operating leases, certain of which
have a renewal and/or purchase option in the normal course of business.
As at 31 March (£ millions) 2020 Lease as a lessor
Current lease liabilities 73 The majority of the leases where the Group is a lessor are in The maturity analysis of lease payments, showing the
Non-current lease liabilities 468 relation to vehicles. The Group classifies these as operating undiscounted lease payments to be received after the reporting
Total lease liabilities 541 leases, because they do not transfer substantially all of the risks date, are as follows:
and rewards incidental to the ownership of the assets.
The following amounts are recognised in the consolidated income statement for the year ended 31 March 2020:

Year ended 31 March (£ millions) 2020
Less than one year 5 5 5
Interest expense on lease liabilities 45
Between one and five years 2 2 2
Expenses related to short-term leases 13
More than five years 11 9 9
Expenses related to low-value assets, excluding short-term leases of low-value assets 7
Total undiscounted lease payments to be received 18 16 16
The following amounts are recognised in the consolidated cash flow statement for the year ended 31 March 2020:
Year ended 31 March (£ millions) 2020
Cash payments for the principal portion of lease liabilities (within ‘payments of lease obligations’) 72
Cash payment for interest expense related to lease liabilities (within ‘finance expenses and fees paid’) 45
Total cash outflow for leases 117

37 Segmental reporting manufacture and marketing of vehicles including financing 38 Notes to the Consolidated Cash Flow Statement
thereof, as well as sale of related parts and accessories and
Operating segments are defined as components of the Group services from which the Group derives its revenues. The Group (A) Reconciliation of (loss)/profit for the year to cash generated from operating activities
about which separate financial information is available that is has only one operating segment, so no separate segment report
evaluated regularly by the chief operating decision-maker, or is given.
decision-making group, in deciding how to allocate resources and
in assessing performance. The geographic spread of sales by customer location and non- Year ended 31 March (£ millions) Note 2020 2019 2018
current assets is as disclosed below:
(Loss)/profit for the year (469) (3,321) 1,114
The Group operates in the automotive segment. The automotive
Adjustments for:
segment includes all activities relating to design, development,
Depreciation and amortisation 1,910 2,164 2,075
Write-down of tangible assets 10 - 18 18
Write-down of intangible assets 10 - - 46
Rest of Rest of Loss on disposal of assets 20 59 22
(£ millions) UK US China Total
Europe World Foreign exchange and fair value loss/(gain) on loans 13 135 45 (69)
31 March 2020 Income tax expense/(credit) 14 47 (308) 398
Revenue 4,724 5,614 4,757 4,601 3,288 22,984 Finance expense (net) 12 209 111 85
Non-current assets 12,028 58 1,196 209 169 13,660 Finance income 12 (52) (35) (33)
Foreign exchange (gain)/loss on economic hedges of loans 13 (29) 18 (11)
31 March 2019 Foreign exchange (gain)/loss on derivatives 13 (15) 31 (74)
Revenue 5,228 5,485 5,355 4,834 3,312 24,214 Foreign exchange (gain)/loss on short-term deposits (14) (71) 55
Non-current assets 10,859 32 1,045 167 16 12,119 Foreign exchange loss on other restricted deposits 2 - 1
Foreign exchange (gain)/loss on cash and cash equivalents (58) 27 41
31 March 2018 Unrealised loss on commodities 13 78 34 2
Revenue 5,096 4,974 5,318 4,844 5,554 25,786 Loss on matured revenue hedges 81 43 -
Non-current assets 13,146 32 819 165 18 14,180 Share of loss/(profit) of equity accounted investments 15 114 (3) (252)
Fair value loss/(gain) on equity investments 13 43 (26) (3)
Exceptional items 4 29 3,271 (438)
Other non-cash adjustments 2 (4) 6
Cash flows from operating activities before changes in assets and liabilities 2,033 2,053 2,983
Trade receivables 531 249 (317)
Other financial assets 44 61 (267)
Other current assets 112 127 (27)
Inventories 147 152 (296)
Other non-current assets (420) (3) (5)
Accounts payable (548) (419) 600
Other current liabilities 52 115 46
Other financial liabilities (19) (24) 134
Other non-current liabilities and retirement benefit obligation 355 (23) 52
Provisions 112 170 161
Cash generated from operations 2,399 2,458 3,064

(B) Reconciliation of movements of liabilities to cash flows arising from financing activities With Tata Sons Limited With immediate or ultimate
With joint ventures With associates
(£ millions) and its subsidiaries and parent and its subsidiaries,
of the Group of the Group
Short-term Long-term Lease joint ventures joint ventures and associates
(£ millions) Total
borrowings borrowings obligations 31 March 2020
Balance at 1 April 2017 179 3,395 7 3,581 Sale of products 217 - 2 54
Proceeds from issue of financing 543 373 - 916 Purchase of goods - - 1 120
Issue of new finance leases - - 16 16 Services received - 3 150 91
Repayment of financing (546) - (4) (550) Services rendered 111 - - 1
Reclassification of long-term debt 518 (518) - - Dividends received 67 - - -
Foreign exchange (40) (39) - (79) Investments in the year 67 6 - -
Arrangement fees paid - (4) - (4) Trade and other receivables 67 - 1 20
Fee amortisation - 6 - 6 Accounts payable - - 11 48
Reclassification of long-term debt fees (2) 2 - - 31 March 2019
Long-term borrowings revaluation in hedge reserve - (145) - (145) Sale of products 321 - 3 76
Fair value adjustment on loans - (10) - (10) Purchase of goods - - - 214
Balance at 31 March 2018 652 3,060 19 3,731 Services received - 2 170 97
Proceeds from issue of financing 649 1,214 - 1,863 Services rendered 83 - - 1
Issue of new finance leases - - 14 14 Trade and other receivables 15 - 1 15
Repayment of financing (1,250) - (2) (1,252) Accounts payable - - 35 52
Reclassification of long-term debt 768 (768) - - 31 March 2018
Foreign exchange 62 15 - 77 Sale of products 703 - 4 77
Arrangement fees paid - (18) - (18) Purchase of goods - - - 161
Fee amortisation 1 7 - 8 Services received 64 - 162 100
Reclassification of long-term debt fees (1) 1 - - Services rendered 142 1 - 2
Long-term borrowings revaluation in hedge reserve - 103 - 103 Trade and other receivables 112 - 2 48
Fair value adjustment on loans - (15) - (15) Accounts payable - - 28 59
Balance at 31 March 2019 881 3,599 31 4,511
Adjustment on initial application of IFRS 16 - - 499 499
Proceeds from issue of financing 2 1,600 - 1,602
Compensation of key management personnel
Issue of new leases - - 79 79
Repayment of financing (939) - (117) (1,056)
Interest accrued - - 45 45 Short-term benefits 10 10 12
Reclassification of long-term debt 577 (577) - - Post-employment benefits - 1 1
Foreign exchange 5 143 4 152 Other long-term employee benefits 3 - -
Arrangement fees paid (1) (8) - (9) Compensation for loss of office 1 - 1
Fee amortisation 2 8 - 10 Total compensation of key management personnel 14 11 14
Reclassification of long-term debt fees (1) 1 - -
Long-term borrowings revaluation in hedge reserve - 11 - 11
Fair value adjustment on loans - 40 - 40 40 Ultimate parent company and parent company of
Balance at 31 March 2020 526 4,817 541 5,884 larger group
The immediate parent undertaking is TML Holdings Pte. Ltd. Centre, Singapore 049910.
39 Related party transactions (Singapore), which is the parent for the smallest group to
consolidate these financial statements. The ultimate parent Copies of the Tata Motors Limited, India consolidated financial
Tata Sons Limited is a company with significant influence over terms of business and all amounts outstanding are unsecured undertaking and controlling party is Tata Motors Limited, India, statements can be obtained from the Company Secretary,
the Group’s ultimate parent company Tata Motors Limited. and will be settled in cash. which is the parent of the largest group to consolidate these Tata Motors Limited, Bombay House, 24, Homi Mody Street,
The Group’s related parties therefore include Tata Sons financial statements. Mumbai-400001, India.
Limited, subsidiaries and joint ventures of Tata Sons Limited Transactions and balances with the Group’s own subsidiaries are
and subsidiaries, joint ventures and associates of Tata Motors eliminated on consolidation. Copies of the TML Holdings Pte. Ltd. (Singapore) consolidated
Limited. The Group routinely enters into transactions with its financial statements can be obtained from the Company
related parties in the ordinary course of business, including The table on the next page summarises related party transactions Secretary, TML Holdings Pte. Ltd., 9 Battery Road #15-01 MYP
transactions for the sale and purchase of products with its joint and balances not eliminated in the consolidated financial
ventures and associates. statements. All related party transactions are conducted
under normal terms of business. The amounts outstanding are
All transactions with related parties are conducted under normal unsecured and will be settled in cash.

41 Additional details on going concern assumptions scenarios. While not assumed, this could be reduced through
Production facility restarts have been demand led in order to more active day to day management of receipts and payments.
The going concern analysis is based on detailed assumptions on ensure that we manage the impact on variable profit margins.
how the business normally operates and how COVID-19 might Given the high level of uncertainty the Group has ensured that Brexit
impact the business. The assumptions include but are not we remain flexible and react to changes swiftly.
limited to the following additional assumption details. Except The Scenario 1 and Scenario 2 assumption for Brexit is that a
where stated otherwise, these assumption details are the same Employees deal is agreed to avoid a hard Brexit. Scenario 3 assumes a hard
for all scenarios. Brexit. A hard Brexit is assumed to result in 10% WTO tariffs on
For the purposes of this going concern analysis, no structural UK vehicle exports to EU countries and increased logistics and
Retailer Network changes are assumed to the permanent employee base in any of other associated costs from 1 January 2021, offset partially by
the scenarios. The Group has participated in the UK job retention the impact of a weaker pound expected in such a scenario.
Currently, over 97% of retailers worldwide are open or partially scheme whereby the government partially reimburses the wage
open although this varies by region and some retailers are open and salary costs of furloughed workers. At its peak about 20,000
on a constrained basis. The shutdown of retailers during the employees were furloughed providing about £50m of monthly 42 Subsequent events
pandemic has undoubtedly decreased the financial strength of subsidy. However participation is now decreasing with plants
the retailer network with announcements of layoffs and other reopening and it is assumed the programme will not continue On 5 June 2020 Jaguar Land Rover’s China subsidiary signed
actions to reduce costs. Jaguar Land Rover is continuously after October. a CNY 5 billion (£567 million) 3 year syndicated revolving loan
engaging with its retailers and at present is not assuming material facility. This facility was fully drawn on 12 June 2020 and
risks associated with retailer distress in any of the scenarios. Working Capital is subject to annual review. In addition in Q1 FY21 the Group
increased its fleet buyback facility by £63 million.
Supplier base Working capital movements in cash flow are significantly driven
by volume levels and changes. This is because supplier payment After the balance sheet, the following factories have resumed
The business is carefully monitoring the impact of the COVID-19 terms are about 58 days on average although payment terms production:
shutdown on the supply base and readiness of suppliers to for individual suppliers can be longer or shorter, while payments
support the gradual resumption of production underway. Many for vehicles are received in most countries within a few days of Solihull, UK – 18 May 2020
of our suppliers are large well-capitalized companies, with others retailers being invoiced. Inventories can also vary to the extent Engine Manufacturing Centre, UK – 18 May 2020
being smaller and medium sized suppliers who tend to have wholesale volumes deviate from forecast before production can Nitra, Slovakia – 18 May 2020
less financial flexibility. At present there are a limited number be adjusted but in general the Group has set a Charge+ inventory Graz, Austria – 18 May 2020
of known supplier issues, which at this point are not materially target of £3 billion or lower. Halewood, UK – 8 June 2020
different to historically experienced levels. JLR is therefore not Pune, India – 15 June 2020
presently assuming these represent a material risk compared The Group had negative free flow in April and May of about £1.5 Itatiaia, Brazil – 15 June 2020
to historically experienced levels in the Base Case and Severe billion. This includes a £1.2 billion unwind of working capital
Scenarios – supplier claims in May 2020 are below prior year resulting from the plant shutdowns. The working capital unwind
levels in terms of number and value. The Extreme Severe primarily reflects the runoff of payments to suppliers for vehicles
Scenario assumes a modest increase in supply chain cash costs built before the plant shutdowns, offset partially by the sale of
related to COVID-19. vehicles in inventory. Cash at the end of May was about £2.4
billion, including about £278 million in international subsidiaries
Suppliers are on payment terms ranging from 7 to 64 days, with and the revolving credit facility of £1.9 billion remained available
the standard terms being 60 days and the average 58 days. No and undrawn. A free cash outflow of less than £2 billion is
change in supplier terms is assumed in the going concern analysis expected in Q1 of Fiscal 2020/21.
compared to historical experience.
As production volumes resume, this effect is assumed to reverse
COVID-19 and Production Restart Considerations and wholesale revenues are assumed to increase while payments
to suppliers will lag because of the difference between supplier
The Group’s production facilities have been modified to protect and retailer payment terms described.
the safety of our employees and to comply with social distancing
legislation. Production ramp up post lockdown has been Intra-period volatility
managed to ensure that these changes within the facilities are
embedded quickly and we don’t expect them to have a lasting There is a certain degree of volatility in cashflows by month and
impact of the variable costs of production in any of the going within months. Historically this has averaged about £188 million
concern scenarios. Restart plans have been coordinated with intra-month with only a very limited number of exceptions over
our supply base to ensure that all our suppliers can support the £400 million. It is assumed this level of volatility varies with sales
production schedule effectively. and production volumes and so would be smaller in lower volume

PA R E N T C O M PA N Y F I N A N C I A L S TAT E M E N T S PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
PARENT COMPANY BALANCE SHEET Capital

Ordinary share Retained
(£ millions) redemption Total equity
capital earnings
reserve
As at 31 March (£ millions) Note 2020 2019 2018 Balance at 1 April 2019 1,501 167 449 2,117
Loss for the year - - (21) (21)
Non-current assets
Investments 43 1,655 1,655 1,655
Total comprehensive expense - - (21) (21)
Other financial assets 44 4,770 3,628 3,093 Dividend - - - -
Other non-current assets 45 1 2 1 Balance at 31 March 2020 1,501 167 428 2,096
Total non-current assets 6,426 5,285 4,749
Balance at 1 April 2018 1,501 167 671 2,339
Current assets
Profit for the year - - 3 3
Other financial assets 44 958 1,270 1,221
Total comprehensive income - - 3 3
Other current assets 45 1 1 2
Dividend - - (225) (225)
Cash and cash equivalents - - 1
Balance at 31 March 2019 1,501 167 449 2,117
Total current assets 959 1,271 1,224
Total assets 7,385 6,556 5,973
Balance at 1 April 2017 1,501 167 320 1,988
Current liabilities
Profit for the year - - 501 501
Other financial liabilities 47 65 37 36
Total comprehensive income - - 501 501
Deferred finance income 2 2 4
Dividend - - (150) (150)
Short-term borrowings 48 424 767 497
Balance at 31 March 2018 1,501 167 671 2,339
Current income tax liabilities 5 4 3
Total current liabilities 496 810 540
PARENT COMPANY CASH FLOW STATEMENT
Non-current liabilities
Long-term borrowings 48 4,759 3,594 3,070 Year ended 31 March (£ millions) 2020 2019 2018
Deferred finance income 34 35 24
Cash flows used in operating activities
Total non-current liabilities 4,793 3,629 3,094
Total liabilities 5,289 4,439 3,634 (Loss)/profit for the year (21) 3 501
Equity attributable to equity holders of the parent Adjustments for:
Ordinary shares 49 1,501 1,501 1,501 Income tax expense 1 1 -
Capital redemption reserve 167 167 167
Dividends received - - (500)
Retained earnings 428 449 671
Equity attributable to equity holders of the parent 2,096 2,117 2,339 Allowances for other financial assets 24 - -
Total liabilities and equity 7,385 6,556 5,973 Finance income (223) (187) (158)
The notes on pages 127 to 138 are an integral part of these financial statements. Finance expense 222 183 157
Cash flows generated from in operating activities before changes in assets and liabilities 3 - -
The Company has elected to take the exemption under section They were signed on its behalf by: Other financial assets (665) (446) (724)
408 of the Companies Act 2006 from presenting the parent Other current liabilities - (1) 1
company income statement. The loss for the Company for the Net cash (used in) operating activities (662) (447) (723)
year was £21 million (2019: profit of £3 million, 2018: profit of
Cash flows from investing activities
£501 million). PROF SIR RALF D SPETH KBE FRENG FRS
CHIEF EXECUTIVE OFFICER Finance income received 198 197 144
These parent company financial statements were approved by COMPANY REGISTERED NUMBER: 06477691 Dividends received - 500
the JLR plc Board and authorised for issue on 2 July 2020. Net cash generated from investing activities 198 197 644
Cash flows generated from financing activities
Finance expenses and fees paid (196) (193) (143)
Proceeds from issuance of long term borrowings 1,486 1,214 373
Repayment of borrowings (826) (547) -
Dividends paid - (225) (150)
Net cash generated from financing activities 464 249 80
Net (decrease)/increase in cash and cash equivalents - (1) 1
Cash and cash equivalents at beginning of year - 1 -
Cash and cash equivalents at end of year - - 1

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS Name of company Shareholding Principle place of business and Registered office address
country of incorporation
Shanghai Jaguar Land Rover Automotive Service Co. Ltd 100% China 11F, No.06 (Building D) The
43 Investments New Bund World Trade
Center (Phase II), Lane 227
Investments consist of the following: Dongyu Road, Pudong New
District, Shanghai 20012,
China
Jaguar Land Rover Japan Limited 100% Japan 3-13 Toranomon 4-chome,
As at 31 March (£ millions) 2020 2019 2018 Minato-ku, Tokyo, Japan, 45
Jaguar Land Rover Korea Co. Limited 100% Korea 25F West Mirae Asset Center
Cost of unquoted equity investments at beginning and end of year 1,655 1,655 1,655 1 Building 67 Suha-dong,
Jung-gu Seoul 100-210,
Korea
Jaguar Land Rover Canada ULC 100% Canada 75 Courtneypark Drive West,
The Company has not made any investments or disposals of The Company has the following 100 per cent direct interest in Unit 3 Mississauga, ON L5W
investments in the year. the ordinary shares of a subsidiary undertaking: 0E3,Canada
Jaguar Land Rover France SAS 100% France Z.A. Kleber – Batiment
Ellington, 165 Boulevard de
Valmy, 92706 Colombes,
Cedex, France
Subsidiary undertaking Principle place of business and country Registered office address Jaguar e Land Rover Brasil Indústria e Comércio de 100% Brazil Avenida Ibirapuera 2.332,
of incorporation
Veículos LTDA Torre I - 10º andar- Moema,
Abbey Road, Whitley, Coventry, CV3 4LF, 04028-002, São Paulo, SP,
Jaguar Land Rover Holdings Limited England and Wales Brazil
England
Jaguar Land Rover Limited Liability Company (Russia) 100% Russia 28B, Building 2
Mezhdunarodnoe Shosse
141411, Moscow, Russian
Federation
The shareholding above is recorded at acquisition value in the Company’s accounts. Details of the indirect subsidiary undertakings Jaguar Land Rover (South Africa) Holdings Limited 100% England and Wales Abbey Road, Whitley,
are as follows: Coventry, CV3 4LF, England
Jaguar Land Rover (South Africa) (Pty) Ltd 100% South Africa Simon Vermooten Road,
Silverton, Pretoria 0184,
Name of company Shareholding Principle place of business and Registered office South Africa
country of incorporation address
Jaguar Land Rover India Limited 100% India Nanavati Mahalaya, 3rd
Jaguar Land Rover Limited 100% England and Wales Abbey Road, Whitley, floor, 18, Homi Mody Street,
Coventry, CV3 4LF, England Mumbai, Maharashtra, India
Jaguar Land Rover North America, LLC. 100% USA 100 Jaguar Land Rover Way, 400001
Mahwah, NJ 07495, USA Daimler Transport Vehicles Limited (dormant) 100% UKEngland and Wales Abbey Road, Whitley,
Jaguar Land Rover Deutschland GmbH 100% Germany Campus Kronberg 7, Coventry, CV3 4LF, England
61476, Kronberg im Taunus, S S Cars Limited (dormant) 100% UKEngland and Wales Abbey Road, Whitley,
Germany Coventry, CV3 4LF, England
Jaguar Land Rover Belux NV 100% Belgium Generaal Lemanstraat 47, The Lanchester Motor Company Limited (dormant) 100% UKEngland and Wales Abbey Road, Whitley,
2018 Antwerpen, Belgium Coventry, CV3 4LF, England
Jaguar Land Rover Austria GmbH 100% Austria Siezenheimer Strasse 39a, The Daimler Motor Company Limited (dormant) 100% UKEngland and Wales Abbey Road, Whitley,
5020 Salzburg, Austria Coventry, CV3 4LF, England
Jaguar Land Rover Italia SpA 100% Italy Via Alessandro Marchetti, Jaguar Land Rover Pension Trustees Limited (dormant) 100% UKEngland and Wales Abbey Road, Whitley,
105 - 00148, Roma, Italy Coventry, CV3 4LF, England
Jaguar Land Rover Australia Pty Limited 100% Australia 65 Epping Road North, JLR Nominee Company Limited (dormant) 100% UKEngland and Wales Abbey Road, Whitley,
Ryde, New South Wales, Coventry, CV3 4LF, England
2113, Australia
Jaguar Cars Limited (dormant) 100% UKEngland and Wales Abbey Road, Whitley,
Jaguar Land Rover Espana SL 100% Spain Torre Picasso, Plaza Pablo Coventry, CV3 4LF, England
Ruiz Picasso, 1 – Planta 42,
Land Rover Exports Limited (dormant) 100% UKEngland and Wales Abbey Road, Whitley,
28020 Madrid, Spain
Coventry, CV3 4LF, England
Jaguar Land Rover Nederland BV 100% Holland PO Box 40, Stationsweg
Land Rover Ireland Limited (non-trading) 100% Ireland c/o LK Shields Solicitors,
8, 4153 RD Beesd,
39/40 Upper Mount Street,
Netherlands
Dublin 2, Ireland
Jaguar Land Rover Portugal -Veiculos e Pecas, Lda. 100% Portugal Rua. Do Pólo Sul Nº2 -
Jaguar Cars South Africa (Pty) Ltd (dormant) 100% South Africa Simon Vermooten Road,
3ºB-3, Parque das Naçoes,
Silverton, Pretoria 0184,
1990- 273, Lisboa, Portugal
South Africa
Jaguar Land Rover (China) Investment Co., Ltd 100% China 11F, No.06 (Building D) The
Jaguar Land Rover Slovakia s.r.o. 100% Slovakia Vysoka 2/B, 811 06
(formerly Jaguar Land Rover Automotive Trading New Bund World Trade
Bratislava, Slovakia
(Shanghai) Co. Ltd) Center (Phase II), Lane 227
Dongyu Road, Pudong New Jaguar Land Rover Singapore Pte. Ltd 100% Singapore 138 Market Street,
District, Shanghai 200126, CapitaGreen, Singapore,
China 048946

Name of company Shareholding Principle place of business and Registered office address Name of company Shareholding Principle place of business and Registered office address
country of incorporation country of incorporation
Jaguar Racing Limited 100% UKEngland and Wales Abbey Road, Whitley, Spark44 Pty Ltd 50.50% Australia Level 5, 65 Berry Street,
Coventry, CV3 4LF, England North Sydney, NSW 2060
InMotion Ventures Limited 100% UKEngland and Wales Abbey Road, Whitley, Spark44 DMCC 50.50% UAE Unit No:1401/04, Swiss
Coventry, CV3 4LF, England Tower, Plot No:JLT-PH2-
Lenny Insurance Limited 100% UKEngland and Wales 4th Floor 175 Gray's Inn Road, Y3A,Jumeirah Lakes Towers,
London, United Kingdom, Dubai, UAE
WC1X 8UE Spark44 Seoul Limited 50.50% South Korea F12, 11 Cheonggyecheon-ro,
InMotion Ventures 2 Limited 100% UKEngland and Wales Abbey Road, Whitley, Jongno-gu, Seoul, Korea
Coventry, CV3 4LF, England Spark44 Singapore Pte Ltd 50.50% Singapore 138 Market Street #36-
InMotion Ventures 3 Limited 100% UKEngland and Wales Abbey Road, Whitley, 01/02, CapitaGreen,
Coventry, CV3 4LF, England Singapore, 048946
InMotion Ventures 4 Limited 100% UKEngland and Wales Abbey Road, Whitley, Spark44 Japan K.K. 50.50% Japan 2-23-1-806, Akasaka,
Coventry, CV3 4LF, England Minato-ku, Tokyo, 153-0042,
Japan
Jaguar Land Rover Colombia SAS 100% Colombia CL 67735 OFE, 1204 Bogotan
Cundinamarka 1 3192 900, Unit No. 604, 6th
Colombia Floor,Sterling Centre,
Spark44 Demand Creation Partners India Limited 50.50% India Dr.Annie Besant Road, Worli,
Jaguar Land Rover Classic USAMéxico, S.A.P.I. de C.V. 100% Mexico Av. Javier Barros Sierra Mumbai-18, Maharashtra ,
No.540 Piso 7 Oficina 703, India
Col. Santa Fe la Fe Del., Alvaro
Obregón, México, D.F. C.P. 21 Forssman Close, Kyalami,
01210 Spark44 South Africa Pty Limited 50.50% South Africa Johannesburg, 1684, South
Africa
Jaguar Land Rover Servicios México, S.A. de C.V. 100% Mexico Av. Javier Barros Sierra
No.540 Piso 7 Oficina 703, 6401&6501, 4F&5F Block
Col. Santa Fe la Fe Del., Alvaro 6.No .436 Ju Men Road
Spark44 Shanghai 50.50% China
Obregón, México, D.F. C.P. 200023 Huangpu District
01210 Shanghai China
Jaguar Land Rover Taiwan Company LTD 100% Taiwan 12F, No. 40, Sec. 1, Chengde 18F., No.460, Sec. 4, Xinyi Rd.,
Road, Datong Dist., Taipei, Spark44 Taiwan Limited 50.50% Taiwan Xinyi Dist., Taipei City 110,
City 103, Taiwan (R.O.C.) Taiwan (R.O.C.)
Jaguar Land Rover Ireland (Services) Limited 100% Ireland C/o LK Shields Solicitors Cl 72 # 10 07 oficina 401,
Spark44 Colombia S.A.S 50.50% Colombia
39/40 Upper Mount Street Bogota, Colombia
Dublin 2 Ireland
Jaguar Land Rover Classic USA 100% USA 251 Little Falls Drive,
Wilmington, Delaware, USA
Details of the indirect holdings in equity accounted investments are given in note 15 to the consolidated financial statements.
Jaguar Land Rover Classic Deutschland GmbH 100% Germany Ringstraße 38, 45219 Essen,
Germany
Jaguar Land Rover Hungary KFT 100% Hungary Regus Capital Square, Vaci ut
76, 1133, Budapest, Hungary
Jaguar Land Rover (Ningbo) Trading Co., Ltd. 100% China Office Building 12, No.1
Meishan Salt, Beilun District,
Ningbo, Zhejiang Province,
China
Jaguar Land Rover Ventures Limited 100% England and Wales Abbey Road, Whitley,
Bowler Motors Limited 100% England and Wales Abbey Road, Whitley,
Spark44 (JV) Ltd. 50.50% England and Wales Abbey Road, Whitley,
Spark44 Limited 50.50% England and Wales The White Collar Factory, 1
Old Street Yard, London, EC1Y
8AF, England
Spark44 LLC 50.50% USA 292 Madison Ave, 3rd Floor
New York, NY 10017
Spark44 Canada Inc 50.50% Canada 10 Alcorn Avenue, Suite 205
Toronto, ON M4V 34, Canada
Spark44 GmbH 50.50% Germany Querstrasse 7, 60322
Frankfurt am Main, Germany
Spark44 Communicacions SL 50.50% Spain Prim 19, 4th floor, 28004
Madrid, Spain
Spark44 S.r.l 50.50% Italy Via Marcella, 4/6- 00153
Rome, Italy

44 Other financial assets Euro MTF listed debt • $500 million Senior Notes due 2019 at a coupon of 4.250
per cent per annum – issued October 2014
The bonds are listed on the Luxembourg Stock Exchange • $500 million Senior Notes due 2020 at a coupon of 3.500
As at 31 March (£ millions) 2020 2019 2018 multilateral trading facility (“EURO MTF”) market. per cent per annum – issued March 2015
Non-current
Details of the tranches of the bonds outstanding at 31 March Details of the tranches of the bond repaid in the year ended 31
Receivables from subsidiaries 4,770 3,628 3,093 2020 are as follows: March 2019 are as follows:
Current
Receivables from subsidiaries 958 1,270 1,221 • $500 million Senior Notes due 2023 at a coupon of 5.625 • $700 million Senior Notes due 2018 at a coupon of 4.125
per cent per annum – issued January 2013 per cent per annum – issued December 2013
• £400 million Senior Notes due 2022 at a coupon of 5.000
per cent per annum – issued January 2014 No tranches of bonds were repaid in the year ended 31 March
45 Other assets • £400 million Senior Notes due 2023 at a coupon of 3.875 2018.
per cent per annum – issued February 2015
• €650 million Senior Notes due 2024 at a coupon of 2.200 Syndicated Loan
As at 31 March (£ millions) 2020 2019 2018 per cent per annum – issued January 2017
• £300 million Senior Notes due 2021 at a coupon of 2.750 In October 2018, a $1 billion syndicate loan was issued with a
Non-current per cent per annum – issued January 2017 coupon rate of LIBOR + 1.900 per cent per annum, due in the
Prepaid expenses 1 2 1 • $500 million Senior Notes due 2027 at a coupon of 4.500 following tranches:
Current per cent per annum – issued October 2017
Prepaid expenses 1 1 2 • €500 million Senior Notes due 2026 at a coupon of 4.500 • $200 million due October 2022
per cent per annum – issued September 2018 • $800 million due January 2025
• €500 million Senior Notes due 2024 at a coupon of 5.875
per cent per annum – issued November 2019 The contractual cash flows of interest-bearing debt (excluding
• €500 million Senior Notes due 2026 at a coupon of 6.875 leases) are set out below, including estimated interest payments
46 Deferred tax assets and liabilities per cent per annum – issued November 2019 and assuming the debt will be repaid at the maturity date:
As at 31 March 2020, 2019 and 2018 the Company has recognised no deferred tax assets or liabilities. Details of the tranches of the bond repaid in the year ended 31
March 2020 are as follows:
47 Other financial liabilities As at 31 March (£ millions) 2020 2019 2018

Due in
1 year or less 660 957 639
2nd and 3rd years 2,035 1,011 1,228
Current 4th and 5th years 2,141 1,696 1,305
Interest accrued 62 33 32 More than 5 years 1,435 1,559 1,008
Other 3 4 4 Total contractual cash flows 6,271 5,223 4,180
Total current other financial liabilities 65 37 36
49 Capital and reserves

48 Interest-bearing loans and investments

Authorised, called up and fully paid
EURO MTF listed debt 3,518 2,839 3,070
1,500,642,163 ordinary shares of £1 each 1,501 1,501 1,501
Bank Loans 1,241 755 -
Total ordinary share capital 1,501 1,501 1,501
Long-term borrowings 4,759 3,594 3,070
Current portion EURO MTF listed debt 299 767 497
The holders of ordinary shares are entitled to receive dividends The capital redemption reserve of £167 million (2019, 2018:
Current portion of long-term bank loans 125 - -
as declared from time to time and are entitled to one vote per £167 million) was created in March 2011 on the cancellation of
Short-term borrowings 424 767 497 share at meetings of the Company. share capital.

50 Dividends The following table shows the carrying amounts and fair value of each category of financial assets and liabilities as at 31 March 2019
under IFRS 9:

(£ millions) Amortised cost and other Total carrying value Total fair value
Dividend proposed for the previous year paid during the year of £nil (2019: £0.15, financial liabilities
2018: £0.10) per ordinary share - 225 150
Amounts recognised as distributions to equity holders during the year - 225 150 Other financial assets - current 1,270 1,270 1,270
Proposed dividend for the year of £nil (2019: £nil, 2018: £0.15) per ordinary share - - 225 Other financial assets - non-current 3,628 3,628 3,628
Total financial assets 4,898 4,898 4,898
Other financial liabilities - current* 37 37 37

51 Commitments and contingencies Short-term borrowings 767 767 763
Long-term borrowings 3,594 3,594 3,245
The Company had no commitments or contingencies at 31 March 2020, 2019 or 2018.
Total financial liabilities 4,398 4,398 4,045
*The 2019 comparative balances have been represented, in order to fully reflect the other current financial liabilities at 31 March 2019.
52 Capital management The following table shows the carrying amounts and fair value of each category of financial assets and liabilities as at 31 March 2018
under IAS 39:
Long-term debt 4,759 3,594 3,070 (£ millions) Loans and receivables and other Total carrying value Total fair value
financial liabilities
Short-term debt 424 767 497
Other financial assets - current 1,221 1,221 1,221
Total debt 5,183 4,361 3,567
Other financial assets - non-current 3,093 3,093 3,093
Equity attributable to shareholder 2,096 2,117 2,339
Total capital 7,279 6,478 5,906
Other financial liabilities - current 36 36 36

Short-term borrowings 497 497 500
53 Financial Instruments class of financial asset, financial liability and equity instrument,
are disclosed in note 2 to the consolidated financial statements. Long-term borrowings 3,070 3,070 3,090
This section gives an overview of the significance of financial Total financial liabilities 3,603 3,603 3,626
instruments for the Company and provides additional information (A) Financial assets and liabilities
on balance sheet items that contain financial instruments.
The following table shows the carrying amounts and fair value
The details of significant accounting policies, including the of each category of financial assets and liabilities as at 31 March Fair value hierarchy • Valuation techniques with significant unobservable inputs
criteria for recognition, the basis of measurement and the basis 2020 under IFRS 9: (Level 3): This level of hierarchy includes financial assets
on which income and expenses are recognised, in respect of each Financial instruments held at fair value are required to be and liabilities measured using inputs that are not based on
measured by reference to the following levels: observable market data (unobservable inputs). Fair values
are determined in whole or in part using a valuation model
(£ millions) Amortised cost and other Total carrying value Total fair value • Quoted prices in an active market (Level 1): This level of based on assumptions that are neither supported by prices
financial liabilities
hierarchy includes financial instruments that are measured from observable current market transactions in the same
Other financial assets - current 958 958 958 by reference to quoted prices (unadjusted) in active markets instrument nor based on available market data.
Other financial assets - non-current 4,770 4,770 4,770 for identical assets or liabilities;
There has been no change in the valuation techniques adopted or
• Valuation techniques with observable inputs (Level 2): This any transfers between fair value levels in either current or prior
level of hierarchy includes financial assets and liabilities periods as presented.
Other financial liabilities - current 65 65 65 measured using inputs other than quoted prices included
Short-term borrowings 424 424 408 within Level 1 that are observable for the asset or liability, Fair values of cash and cash equivalents, and other financial
Long-term borrowings 4,759 4,759 3,846 either directly (i.e. as prices) or indirectly (i.e. derived from assets and liabilities are assumed to approximate to cost due to
prices); and the short-term maturing of the instruments and as the impact of
Total financial liabilities 5,248 5,248 4,319

discounting is not significant. Foreign currency exchange rate risk Interest rate risk assumes that the change occurs at the balance sheet date
and has been calculated based on risk exposures outstanding
Management uses its best judgement in estimating the The fluctuation in foreign currency exchange rates may have a Interest rate risk is the risk that changes in market interest as at that date. The year-end balances are not necessarily
fair value of its financial instruments. However, there are potential impact on the balance sheet, statement of changes rates will lead to changes in interest income and expense for the representative of the average debt outstanding during the year.
inherent limitations in any estimation technique. Therefore, for in equity and cash flow statement where any transaction Company.
substantially all financial instruments, the fair value estimates references more than one currency or where assets or liabilities Liquidity rate risk
presented above are not necessarily indicative of all the amounts are denominated in a currency other than the functional currency The Company is presently funded with long-term fixed interest
that the Company could have realised in a sales transaction of the Company. rate borrowings and long-term variable-rate borrowings. The Liquidity risk is the risk that the Company will not be able to
as of respective dates. The estimated fair value amounts as Company is also subject to variable interest rates on certain meet its financial obligations as they fall due.
of 31 March 2020, 2019 and 2018 have been measured as of As at 31 March 2020, 2019 and 2018, there are no designated other debt obligations.
the respective dates. As such, the fair values of these financial cash flow hedges. The Company’s policy on liquidity risk is to ensure that sufficient
instruments subsequent to the respective reporting dates may As at 31 March 2020, net financial assets of £595 million (2019: borrowing facilities are available to fund ongoing operations
be different from the amounts reported at each year end. The Company’s operations are subject to risks arising from £503 million, 2018: £1,184 million) were subject to a variable without the need to carry significant net debt over the medium
fluctuations in exchange rates. The risks primarily relate to interest rate. An increase/decrease of 100 basis points in interest term. The quantum of committed borrowing facilities available
(B) Financial risk Management fluctuations in US Dollar and Euro against Sterling as the rates at the balance sheet date would result in an impact of to the Company is reviewed regularly and is designed to exceed
Company has US Dollar and Euro assets and liabilities and a GBP £6million (2019: £5 million, 2018: £12 million). forecast peak gross debt levels.
The Company is exposed to foreign currency exchange rate, functional currency.
interest rate, liquidity and credit risks. The Company has a risk The risk estimates provided assume a parallel shift of 100 basis The following are the undiscounted contractual maturities of
management framework in place that monitors all of these risks The following table sets forth information relating to foreign points interest rate across all yield curves. This calculation also financial liabilities, including estimated interest payments:
as discussed below. This framework is approved by the JLR plc currency exposure as at 31 March 2020:
Board. As at 31 March 2020 Carrying Contractual 1 year 1 to <2 2 to <5 5 years
(£ millions) amount cash flows or less years years and over
(£ millions) US Dollar Euro Long-term borrowings 4,759 5,811 215 737 3,424 1,435
Financial assets 2,033 2,180 Short-term borrowings 424 434 434 - - -
Financial liabilities (2,033) (2,180) Other financial liabilities 65 34 19 11 4 -
Net exposure asset - - Total contractual maturities 5,248 6,279 668 748 3,428 1,435
As at 31 March 2019 (£ millions) Carrying Contractual 1 year 1 to <2 2 to <5 5 years

A 10 per cent appreciation/depreciation of the US Dollar or The following table sets forth information relating to foreign amount cash flows or less years years and over
Euro would result in an increase/decrease in the Company’s net currency exposure as at 31 March 2019:
profit before tax and net assets by approximately £nil and £nil
Long-term borrowings 3,594 5,186 946 449 1,595 2,196
respectively.
Short-term borrowings 767 767 767 - - -
Other financial liabilities* 37 37 11 11 15 -
(£ millions) US Dollar Euro
Total contractual maturities 4,398 5,990 1,724 460 1,610 2,196
Financial assets 2,324 999
Financial liabilities (2,323) (998) As at 31 March 2018 (£ millions) Carrying Contractual 1 year 1 to <2 2 to <5 5 years
Net exposure asset 1 1
Long-term borrowings 3,070 3,638 120 824 1,686 1,008
A 10 per cent appreciation/depreciation of the US Dollar or The following table sets forth information relating to foreign Short-term borrowings 497 513 513 - - -
Euro would result in an increase/decrease in the Company’s net currency exposure as at 31 March 2018: Other financial liabilities 36 32 10 7 15 -
profit before tax and net assets by approximately £nil and £nil
Total contractual maturities 3,603 4,183 643 831 1,701 1,008
respectively.
*The 2019 comparative balances have been represented, in order to fully reflect the other current financial liabilities at 31 March 2019.
(£ millions) US Dollar Euro Credit risk Financial assets

Financial assets 1,945 572 Financial instruments that are subject to concentrations of None of the Company’s cash equivalents or other financial
Financial liabilities (1,942) (572) credit risk consist of loans to subsidiaries based in a variety of assets, including term deposits with banks, are past due or
geographies and markets. impaired. Regarding other financial assets that are neither past
Net exposure asset 3 -
due nor impaired, there were no indications as at 31 March 2020
Exposure to credit risk (2019, 2018: no indications) that defaults in payment obligations
A 10 per cent appreciation/depreciation of the US Dollar or profit before tax and net assets by approximately £nil and £nil The carrying amount of financial assets represents the maximum will occur. However, as required under IFRS 9, the Company
Euro would result in an increase/decrease in the Company’s net respectively. credit exposure. has assessed other financial assets for expected credit losses.

These financial assets are loan receivables from subsidiaries risk, the Company has assessed these based on a 12-month 55 Related party transactions and subsidiaries, associates and joint ventures of Tata Motors
and the Company notes there is no history of default on such expected credit loss. The impairment of the loan receivables due Limited. The Company routinely enters into transactions with
arrangements. As there has been no significant increase in credit to the requirements under IFRS 9 are set out below: Tata Sons Limited is a company with significant influence over these related parties in the ordinary course of business.
the Company’s ultimate parent company Tata Motors Limited.
As at 31 March 2020 2020 2020 2019 2019 2019 2018 2018 2018 The Company’s related parties therefore include Tata Sons The following table summarises related party balances:
(£ millions) Gross Impairment Expected Gross Impairment Expected Gross Impairment Expected
Loss Rate Loss Rate Loss Rate Limited, subsidiaries and joint ventures of Tata Sons Limited
Receivables from
subsidiaries -
current 960 2 0.2% 1,270 - -% 1,221 - -%
(£ millions) With subsidiaries With immediate
Receivables from parent
subsidiaries – 31 March 2020
non-current 4,792 22 0.5% 3,628 - -% 3,093 - -%
Loans to subsidiaries of Tata Motors Limited 5,728 -
Total 5,752 24 0.4% 4,898 - -% 4,314 - -%
31 March 2019
Movement in allowances for expected credit losses of financial assets Loans to subsidiaries of Tata Motors Limited 4,898 -
Year ended 31 March (£ millions) 2020 2019 2018 31 March 2018
At beginning of year - - - Loans to subsidiaries of Tata Motors Limited 4,314 -
Charged during year 24 - -
At end of year 24 - - Compensation of key management personnel
54 Reconciliation of movements of liabilities to cash flows arising from financing activities Year ended 31 March (£ millions) 2020 2019 2018
(£ millions) Short-term borrowings Long-term borrowings Short-term benefits 4 4 4

Other long-term employee benefits 1 - -
Balance at 1 April 2017 - 3,395
Total compensation of key management personnel 5 4 4
Proceeds from issue of financing - 373
Reclassification of long term debt 518 (518)
Foreign exchange (19) (184)
Apart from the six directors, the Company did not have any undertaking and controlling party is Tata Motors Limited, India,
Arrangement fees paid - (4)
employees and had no employee costs in the years ended which is the parent of the largest group to consolidate these
Fee amortisation - 6 31 March 2020, 2019 and 2018. All directors’ costs are fully financial statements.
Reclassification of long term debt fees (2) 2 recharged to Jaguar Land Rover Limited.
Balance at 31 March 2018 497 3,070 Copies of the TML Holdings Pte. Ltd. (Singapore) consolidated
Proceeds from issue of financing - 1,214 56 Auditor’s remuneration financial statements can be obtained from the Company
Secretary, TML Holdings Pte. Ltd. 9 Battery Road #15-01 MYP
Repayment of financing (547) -
Amounts receivable by the Company’s auditor and its associates Centre, Singapore 049910.
Reclassification of long term debt 768 (768) in respect of services to the Company and its associates, other
Foreign exchange 49 88 than the audit of the Company’s financial statements, have Copies of the Tata Motors Limited, India consolidated financial
Arrangement fees paid - (18) not been disclosed as the information is required instead to be statements can be obtained from the Company Secretary,
Fee amortisation 1 7 disclosed on a consolidated basis in the consolidated financial Tata Motors Limited, Bombay House, 24, Homi Mody Street,
statements. Mumbai-400001, India.
Reclassification of long term debt fees (1) 1
Balance at 31 March 2019 767 3,594 57 Ultimate parent company and parent company of
Proceeds from issue of financing - 1,486 larger group 58 Subsequent events
Repayment of financing (826) -
Reclassification of long term debt 477 (477) The immediate parent undertaking is TML Holdings Pte. Ltd. There have been no material subsequent events between the
(Singapore), which is the parent for the smallest group to balance sheet date and the date of signing this report.
Foreign exchange 6 155
consolidate these financial statements. The ultimate parent
Arrangement fees paid (1) (8)
Fee amortisation 2 8
Reclassification of long term debt fees (1) 1
Balance at 31 March 2020 424 4,759


Jaguar Land Rover - Annual Report - FINAL

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JAGUAR LAND ROVER AUTOMOTIVE PLC

25 Introduction to governance FISCAL 2017/18: 614,309 FISCAL 2017/18: 545,298

FISCAL 2018/19: £24.2bn FISCAL 2018/19: £(3.6)bn

FISCAL 2018/19: £2.5bn FISCAL 2018/19: £3.8bn

FISCAL 2017/18: £3.1bn FISCAL 2017/18: £4.2bn

3 JAGUAR LAND ROVER AUTOMOTIVE PLC

5 JAGUAR LAND ROVER AUTOMOTIVE PLC

PROF SIR RALF D SPETH KBE FRENG FRS

7 JAGUAR LAND ROVER AUTOMOTIVE PLC

9 JAGUAR LAND ROVER AUTOMOTIVE PLC

H O W O U R B U S I N E S S M O D E L C R E AT E S VA L U E OUR BLUEPRINT DEFINES US

Raw Supply Customer Skills and Investment

Mobility Design and OU R BUSINESS

Global Sales Manufacturing

Financial Logistics IN T EG R IT Y, R ES P O N S IB IL IT Y, EXC EL L EN C E, U N IT Y, PIO N E E R I NG

11 JAGUAR LAND ROVER AUTOMOTIVE PLC

sales year-on-year. Bushfires in Australia, tensions and conflict 22.0% 7.7%

NORTH AMERICA EUROPE UK CHINA OVERSEAS

13.2% 17.6% 20.8% 16.2% 17.5% New model

XF E-PACE RANGE ROVER SPORT DISCOVERY SPORT

13 JAGUAR LAND ROVER AUTOMOTIVE PLC

15 JAGUAR LAND ROVER AUTOMOTIVE PLC

17 JAGUAR LAND ROVER AUTOMOTIVE PLC

# Annual Report 19/20 Top10

OUR RESPONSIBILITY FRAMEWORK

19 JAGUAR LAND ROVER AUTOMOTIVE PLC

Energy consumption used to calculate emissions: kWh 1,274,998,136

23 JAGUAR LAND ROVER AUTOMOTIVE PLC

25 JAGUAR LAND ROVER AUTOMOTIVE PLC

JAGUAR LAND ROVER AUTOMOTIVE PLC BOARD

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GOVERNANCE, STAKEHOLDERS AND SHAREHOLDERS

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INDEPENDENT AUDITOR’S REPORT

Going Concern Disclosure quality: Our procedures included:

39 JAGUAR LAND ROVER AUTOMOTIVE PLC

The risk Our response The risk Our response

• Assessing transparency: Assessed the adequacy of

41 JAGUAR LAND ROVER AUTOMOTIVE PLC

The risk Our response The risk Our response

• Historical comparison: Performed a retrospective

• Assessing transparency: Assessed the adequacy of the

43 JAGUAR LAND ROVER AUTOMOTIVE PLC

45 JAGUAR LAND ROVER AUTOMOTIVE PLC

47 JAGUAR LAND ROVER AUTOMOTIVE PLC

Revenue 5 22,984 24,214 25,786 Non-current assets

They were signed on its behalf by:

PROF SIR RALF D SPETH KBE FRENG FRS

Ordinary Capital Other Equity Non- Total

51 JAGUAR LAND ROVER AUTOMOTIVE PLC

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61 JAGUAR LAND ROVER AUTOMOTIVE PLC