Q1 2021 Tata Motors Ltd Earnings Call

[music].

Ladies and gentlemen, good day and then you can do does that then we'll do it Q1, it's likely anyone earnings conference call.

As a reminder, I just wanted to things like maybe in listen only mode.

Because of presentation, if anybody has it been intends to ask questions.

They can use the Chad walks option, appearing at the bottom of the screen to submit that question to the speakers.

A question shouldn't be taken up at the end of the session. Please note that this conference is being recorded.

I know I know what confidence do Mr. gosh Monday from Tata Motors, Thank you and I went over to user.

Oh, Thank you Lisa what do you think everyone on behalf of double that I've been getting you or whatever you want that's quite frankly, when todays conference call.

I'll be happy Doug if they're going to of course, it and again you got it okay. So it's I'd rather be spread your Jaguar land Rover.

Mr Beauty biologic <unk> CFO Dr. Morris.

Mr. Adrian Martin you put Jaguar land Rover.

Mr. Giddy, but have you didn't come up and making business unit talking with us. They certainly STENDRA, that's baked into making I'm going to figure it could but Mr. I'm older and older than Felipe somebody like so they can be.

Really starts [laughter] well, what do you have the up and it's been in business. According to something management, followed by a few anything.

Well what are your balance.

Yeah.

Oh that progression banks, all up before joining the session.

Talk whether to do well, let me quickly go into the highlights of the Oh the performance of this public Mccourt, though.

The safe Harbor statement nothing.

You in that.

This time at all.

For them.

Oh prototype nice you've seen it.

Despite covert despite a challenging situation that we face. So it has been and he then speeded up activity for us than before.

Are we launched the up.

So much in me because I feel good he should want to talk about or the next generation connectivity solutions will be pitch.

On the P. beside the relaunch the picture, but it seems that fall into for the holistic support being for water to the for corporate as it usually been talking quite extensively about.

As part of the geographies is concerned the depend of into production car design of the young and voting who has been launched especially in addition, so full of greater dream, you're going to talk about that later on seem to be Angela sport as bad So the product offensive continues its slow progress.

I phone number for the fourth with Samsung purely on or a challenging for children that was wall and revenue went down by <unk> and of course, all for the fourth of the losses with a box before them 184 columns is more rehab.

EBITDA almost impossible, but to one six person and if it goes down that there might not looking but then fundamentally because of the negative all predict whether that be seat that'd be salt.

Oh, all grown corporate impact and a one particular catalogs that that who is absolutely gradually operation that stockard resuming from a middle me a book than Gilat I've been up internal models here.

And for the 400, you're not in Nevada Chalk bluffs savings of 1.2 billion I'm Adrian is going to talk about that in greater detail I was delighted that good stepping up the target even further in the coming.

In this quarter for the for the rest of the yet.

And in India, Wafi commented a focus on both Austin cash savings is starting to coming through a with good momentum.

There's obviously a negative leverage book leases.

On the free cash most likely at a cash outflow 18 goes up because almost being told than girls auto that it just working capital and wonder talk about that and this is significantly better than the expectation on the guidance that we gave my favorite on thanks to the cast and of course cash and prospects over the year for the that's happening in both places.

Oh, the only point I would make on the whole world B, B 89, which I'll talk about when it comes to Jay lots of deferred tax assets matter, which we will cover the MME bye bye.

Oh.

Oh revenue this is a standard flight though.

During the call in terms of the one that makes weighing on the almost 30000 crores almost entirely explaining the performance of the Oh supporter and Gelardi, Patrick billable 30000 problems on DM out at about 10000 Boes a call out to the T. M revenue were down by almost 80% to see needle 97 dipping.

Clearly, we have in challenging times or if there ever was what.

Hello.

On the EBIT line, Oh, we had a decline had been right, Oh, gee or not and Dms or both.

He explained by the operating leverage points and then nothing new in just in this particular thing other than Oh boy, there's another Victor.

Right.

On the peak basketball sneakers or the follow up I would make is 18000 proposals that are cash outflow for involved the quarter, but close to about being going off and 14 since nine six I do see there's the working capital I'm like we should come back again won the business starts growing again.

As far as a cash kraton net spend of symptoms that there's does one of your bought 3000 crores, which is Ah. We just don't falling off for the calling out the work done on the cash consideration side on the cost reduction platos, but.

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On the debt profile overall or liquidity is adequate and strong at a JLR sitting at 4.7 billion, including in our CFO at 1.9 billion and the M. sitting at the almost 7000 gross cash from work myself importantly, both in the quarter ended on a consolidated debt thanks to the cash burn.

But before earlier moved up from 40, it doesn't close to 60. It doesn't was almost entirely explained they want to respond to free cash flow line and are we expecting this should start reversing once the working capital comes back again.

Melissa.

Well there I'd be on that deliberate actions have you put in place a as far as Gilat is concerned Josh moves targets I've been in house further to that so then 66 billion bombs for the bank mopped up 2021.

Capex for the yard to wonder how begin offered in the B when you get there and we're reconfirming that we would be cash positive coming quite 20 to one whats.

That's out of India is concerned update on five Boston cash holding costs almost delivered for the third and fourth are we talking governor, which I've just different bill defenses situation normalizes.

And Capex, we wouldn't meet that doesn't find it brought number.

And Doug. This is just the stock of action, but putting in place as we need of this business significantly by a fytwenty three.

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Let me know handles all what the Adrian and Ah. That's just one follow which I would the ask him to fill it little bit on on the beauty on the deferred tax asset on the be it the United is probably the only cookie items and a dog being on the sport. If you know what do you.

Many thanks funny he could a good evening to everybody. Let me go through the check your line drove results in quarter. One. So the first thing or is the losses in the cool to with 413 million pounds at slightly higher than last year, but only 18 million hiring with revenue.

And as volumes, 53% and as significant impacts on those cost reductions through the charge program.

I'll take the next piece straight own that C N.

That's a losses after tax they actually was six full eight.

And there's a big or there's a big tax charge that 80% of which is deferred tax elimination of prior UK losses. So its accounting treatment totally known cash and how do we recover from the Kobin process later on in the years that will reverse itself in time and then the right.

The charges or the tax charges that cheniere overseas operations, we were profitable in the number of ever overseas operations in the quota and of course tech charges flow into local jurisdictions.

Beyond that you see the investment number in the course of five full eight.

This is 795, so significantly lower on investment also and that's a key inputs and a key driver into at cash outflow number 1.5 billion, which is a 793 million worse than last year, but given the revenue was 50% and that's Uh huh.

Some performance overall, the cash number 2.7 billion cash number 70 slightly lower than the cash we add on hand in June last year, just hundred 92 million times lower I just shows well that super jump we've done in cash management next slide if he would please.

These are the retailers retail is actually were 42% Dan.

In the a in the quarter versus last year and you actually see he has a the regional splits.

I'm not surprisingly or given cobot actually started in China in quarter four last year, there was actually caught a modest impact Tonight, China retailers in the quarter only 2.5% lower.

North America beyond that was more vibrant 32% lower than last year, and you see Europe, and UK, particularly mostly close to the first 678 weeks of the call two and therefore, not surprising you reach out was substantially lower I.

I would say that from June on words, the pickup was quite dramatic.

Let's start to see some of that and even though we're not showing July dated today that pickup in those regions has continued to pace post this quarter and so as selling right is a is stronger as we go into quarter two and has continued in quarter two next.

I'm sorry, if you would please.

So these are the v. shapes that we will roll one thing I'm looking for when we did a yearend presentation just six weeks ago pretty much every region now showing it of course, China was the first and the most dramatic you see the year over year percentages that that's the bottom you know followed by north.

American North America jewelry tells a 2% greater than June in 2019, which is good a UK getting back then we're getting a very strong UK July number July will be year over year positive retail in the UK Europe Benson backend overseas that's a collection.

In of regional markets and therefore.

Unfortunately, they sat diseases landing at different points in times. After it was mixed performance in overseas and I expect the overseas recovery to take the longest and be the slowest recover and next slide if you would please.

My name plate you can see the difference is down there right hand side versus the same quarter.

Last year, you know so pretty much across the nameplates was an exception of one defender of course, we're talking a few moments a bit more that defender we started to make defend the retailers later in the core to the launches I started to begin in early June how many wholesale almost 8000 units as well I'll pick about store.

In the later slides next page please.

Right so loss happening on this year over year page some things of course would be obvious so last year in quarter, one we lost 395 million pounds.

This time last fall when three.

As you would expect was there a 50% reduction in volumes substantially all of the losses year over year isn't the volume mix and match kit. The headline volume number you see there and also cost with the dealerships closed and with a lot of people actually not traveling and using that because through much of the cool counterparts.

Mr is was negative versus last year's well one really good core lives here the China JV you know we had to.

Thousands of difficult time in China, and we did commission promise to you guys said that would start to reverse it has reversed we're close to breakeven in quarter, one in the JV and the outlook for the rest. This fiscal year is positive also so that's one call that I wanted to make given that's committed.

We had previously made to you.

Let me pleasing is well same level as prior year, even in a very very difficult market. So even though our volumes were down we were pretty much selling the units at the level, we would previously Vienna, which is good.

And lots of good news here on warranty we did have a bad quarter in Q1 last year, we've had a good quarter. This time warranty you see that was down to 3.8%.

Revenue and you know I've talked about warranty previously were becoming more and more confident that the color too bad because our improving when they're picking up quality awards as you would've seen from the U.S. survey on some of their name plates. Also this is another commitment we've given to you previously done they start to now to show.

In the actual results warranty is a huge like indicator of course, because I Russo the rules are there I would make us quite conservative in the reporting of the data, but I do expect later in the year for these improvements to continue.

Material cost.

At a cost reduction efforts in the core to is slower than last year's you would expect given the nature, what's been happening to us on the supply base and there's also some lump sum settlements we made to certain supplies in the period. So that's one to watch later in the year as we turned back to normality I expect the power of Iran's Nightmare.

<unk> real cost savings to start to kick in in the second half of this fiscal year.

Great performance on structural cost everywhere.

Six marketing Sally we did receive Mondays from the UK government code for allow for employees, who actually will not working we had 20000 employees at one point in April actually at home and we are receiving a contribution to that salary from the government that show in there and the other ones the call.

It is the de stocking that's effectively manufacturing inefficiencies when we don't build cost.

And therefore, there is very much a twin between the de stocking in the money contribution we would receive from the government on furlough.

Big improvement versus last year on exchange as you can see that all elements operating but the one I wanted to call out here was the realized hedges.

No way crystallizing all of those very old hedges that were put in place pre Brexit and versus last year. Our losses on those contracts were 100 million Pan lower although we still did lose about 49 million pounds on those contracts in the quarter and that's of course, because the spot rate on Sterling has been so we.

For the last several.

Several weeks and months, although strengthening ablative as you would have seen.

George 1.5 billion.

Lifetime on cost and.

And profits.

And I would call that a bit more lights restaurant next slide if he would please.

Really important flight as well so we lost to 1.5 billion cash in the quarter. You will remember we said to you in June with losses in April and May, which we had that tells you. We actually were cash breakeven in June which on a you know, 50% lower wholesale which Jim were as well that just shows the power of the program.

Once the working capital disadvantages to work through Panda. He made the point, which we start building caused that well build back later on in the years starting in quarter. Two so our underlying cash loss was about 400 million pounds look at the bottom piece Ryan our underlying cash loss was actually lower in core.

One last year.

Even though volumes were 50% lower that's how powerful the charge program and the actions we've taken on the speed of those actions.

A dramatic impact on quota one next slide if you would please.

Okay. So investment much lower as we committed it would be we still hold on to the full year guidance of 2.5 billion.

548 million of that we spent in quarter one reductions in all categories. Although at capitalized expenditure was lower year over year and of course, a number of engineers were actually no engineering, there at home and therefore that except that costs were expensed, that's why the capitalization levels low about 61%.

In the quarter I believe next slide please.

Okay, let's take a look at a little bit more strategically we could spend an hour on this or 10 seconds onto the 10 second version.

No significant risks, we all know that a in a month's time the page will shape slightly differently. So obviously the name of the game here, it's not to be two exposed and extended and with the basically at principles.

You know lean business inventory investment expenditures, which had been triggered over the last two years with charge and then I have accelerated in the quarter will continue until we start to see that stability that we all hope and pray for next.

Next page what please.

Okay. We said this was a demand led a restart a lot of people were saying it but I think you will see from this page.

It's starting to come through in work, 98% bad deal as globally, just over 1500 dealers in total were fully or partially open.

In a in North America.

You know given the the restatement of some of the outbreak in some of those States. Then you know a few more dealers were closed in June or you see on the right hand side, what that means to our production now all of our plants are actually opened with the exception of cancer products, which actually does open when everybody.

Returns on the 10th of August.

And some of our plans already a back on to shift producing he or she will be five vehicles. That's all the whole and also the defend the vehicle in Slovakia, We had a good mix in the quarter you know, even though we were down overall on sales we had a good mix of sales with our largest vehicles and aren't offenders.

Hi demand for those units even during quarter one covert next slide please.

This is a really important slight him we hopefully we'll get message I was that.

And the reason for showing it is two things actually one as you know at the end of March given Seo stopped really really quickly UK Europe and North America.

We had an acceleration of idealists stocks are inventories you know not use that biggest sounding month from many respects you know cobot actually hitting most regions in mass was actually the worst place for to land to build the cost would ship the cost of the dealers and then all the deal is closed that means we had a huge increase in dealer inventory that show.

Actually on the Blue line.

As we went from December through to March of course, we don't build all those vehicles just before we distribute them evenly across the quarter and we build up our inventories are waiting for that much so Dan and it didn't happen. So were significantly I was stopped that grew to 109000 units in may.

We're working really hard to collect dealer inventory back where it needs to be it dropped to 88000 units just over at the end of June and it's dropping even more dramatically in July when we show that on a days cover perspective, we had.

Well over 140 days at the end of March which is far too much stuck in the data is of course for the reasons are just said I dropped dramatically to 90 days in June.

And again, it's falling even more dramatically in July at target is 55 days and we believe will mostly get to that target by the end of September either September or October and the real point is of course here.

When we have retailing more them, we're producing in wholesaling and that's a short term dramatic impact on our efficiency on the cash coming into our business and that will continue in quarter. Two so we believe we will be lossmaking in quarter, two but overwhelmingly because we will be repairing retailer inventory and once.

We've done that and I don't think a lot of people expected us to cleanser business as soon as September given when covert landed once we've done that we will start to see a normalized half to where production wholesalers and retailers are very close to the same number with the exception of CGM to of course a joint.

Pension, which we show a retail number not a wholesale so our jobs to repair. This by September and then we would then see dramatic improvements to profitability in the second half of the year. This page is tiny we're on track with that in fact, where a headwind we expected to be and July numbers dropped down to 70 days.

Yes, just over so dramatic improvement in July also next page. Please.

Okay, and new products, great new product actually on a range Rover under range Rover Sport, you 48, a and have scaling into the batteries going into the M. have 12% improvement on efficiency, 12% reduction on C O two lots of space.

Well additions, including quite a dramatic color that you see.

The 50 basis, the Westminster SBO topography, all of that coming through same on range Rover sport is well. These cars are selling really well in this period.

Particularly in a big regions, China, and North America. So we're really pleased how these I should be five units are still selling and that part of their life and they will continue to do so over the rest this fiscal year. We believe next slide please.

Defender Wow, Okay. So.

We had a good June even though the launches you know with started as a result of us not wanting to launch when dealers when shut down. We did go ahead with some virtual launches you can see at the bottom nabbed by region. When those launches started to land UK Europe in Maine, North America June under 24th of July.

We launched in China also we've got 30000 orders already right, which basically means as a follow on the bank you know most for the rest of this.

Calendar year.

We got more than 1100 orders from China from the week, a week ago launch as well. So it really sensational response to this vehicle. So sensational we've decided to delay the launch of the defend a 90.

Which will now be later in the year to make sure we give the 110 a chance to reach all of its intended customers before we bring and the next super derivative of the Super vehicle unit BMW decided they couldn't do this so did Ford Jaguar land Rover and the Tata Motors launch this way.

It's a dramatic vehicle and it will be successful for generations to come in many many many forms we are so prior to the achievement of the team on the defend the next slide please.

Okay electrification, we told you again there'll be a huge.

Increasing the electrification offerings, we do over the balance of they share.

Well move into one bad we know that the pace H.P. halves by the end of the calendar year and 11 and have through this is well when we launched finally 21 month. The vehicles. This is our portfolio that will make us compliant from 21 calendar year.

What's next slide please.

Charge, while charges charge faster than we expected it to be able to do it's had a dramatic impact in the quarter again 1.2 billion pounds worth of savings, we've actually artificially reduced some of those savings on inventory cause you to notice from the earliest slide inventory actually.

Dropped 841 million.

In the first quarter, we're only reporting 400 million of that within this data because we think that as the underlying improvement will make across the fiscal year as we build up our sales BMT will grow to its only reported the full year number that we expect rather than the quarter, one number but even saying.

1.2 billion across cost profit, which I took you through earlier inventory and investment.

Of the back of that Weve improved our outlook and our target to 6 billion. We're already at 4.7 and there is 1.3 billion for us to go over the balance of the year next slide please.

This is where we believe we will find it.

Investment will be within that 2.5 billion target range don't forget last year is 3.3 billion. So in total 800 million will come from year over year investment improvements of which almost 300 was in the first quarter no inventory. We've kept at the 3 billion level as I've, just said and the rest will come from.

Mixture of profitability in cost reduction and I've already indicated wanted to warranty is starting to come through.

We'll deliver more as we progress through the years those 20 modeling of cost.

Which have significant improvements across all nameplates.

Versus earlier model years, we'll start to impact our actual results cash spend material cost Roberto through ignite we talked about ignites.

Last time, so and dwell on the again again that will be in the second half of the here and we will certainly we're starting to see a stabilization of the EMEA and the power of lean inventory and pipelines as shown first in China.

Transacting prices are increasing in China for NPL business and that means that bubble of marketing reducing in China for import business. So we're very confident in the program. We've gone early to the 6 billion level, we think thats a great target for the full year and we'll come back and report quarterly our progress against that target, which we believe.

We will deliver next slide please.

Okay, New funding no changes since we talked on the 15th the June So it's still the China three year facility and of course, the cashes and Ed drawn down on and the two smaller facilities.

The biggest of which is in the U.K., which actually rose at later in the year, we may take opportunities later in the year to refresh.

Our.

Borrowings to build our liquidity, but that was still mainly investment targets as quoted will remain the same final slide for main exony.

Thank you Okay. So outlook of course, it's uncertain and therefore, we will not overextended south and is uncertain period.

Core to two fiscal year sales volumes.

They're going to be higher than quarter, one I've mentioned that will be repairing dealer inventory. So not all of that improvement will flow into wholesales revenue in cashin.

Therefore, we do expect to be lossmaking in Q2.

But I also expect to be cash positive every quarter. The shares we build back not working capital that we saw dramatically impacting opened the first two months and I expect us to be sustainably cash positive from F. Why 22 also and that's the power on the program that we talk to allow that we'll continue to.

Reduce improve our efficiency and reduce our breakeven points and cash generation points focus areas new models lots of them coming through great point in the marketplace say hitting the range Rovers the range Rover sport to defend as this is another sweet spot for us the cash savings, we talked about on charge on the investment.

Our guidance two and half billion this year and up to 3 billion from next year, which is lower than the previous guidance. We would have given two quarters ago I think thats My final slide.

Thank you again.

I'm going quickly on the Tata motor or a very very challenging quarter or there are with that with revenues drone 80%.

And the wind to highlight here. It is almost everything is operating de levers that you see ER and the negative operating leverage, but we are putting it.

They're going to PBT loss of 2190 cross.

Although only piece to draw your attention of on free cash flows.

4300 accruals, so four to nine for better than last year and better than what we guided as 5000 gross and we'll talk a little bit about cash becoming part of this likely.

The PBT is almost entirely volume and mix and the fixed cost, but number that you're seeing a slowing through a saving a model of getting offset by the.

Dividends from subsidiaries, our finance costs as well so overall oh it as the volume mix story.

Oh.

Free cash flow, probably talked about all of the four to nine almost 3000, Kogas working capital and all of the 3000 crores almost 3300 proposals payable, but just tells you that we've just paid people and our north revenues to be collected and bundling back that you see ocular rather than last year, but I'm better than guidance of course.

Hello.

Oh industrial spending remote forward or.

What's your other than complying with the guidance your growth there.

Cash savings so all the of Delaware, Poland printed a cost to date.

Up out of the three zones those investments slammed on the updated about 40 Eightv does that reduction over the same period.

And we will deliver the 3000 have the your progress.

Working capital on should give you have not taken it because you'd want to wait for business to resume before you called out anything on working capital.

You can do those an 80% reduction in baby.

And that's part of cost and profits are concerned view, we're off the books are so high bit.

Our diluting or what by 40 calls MBR Austin profit line.

So which is reassuring. So we are quite on placard and over the phone calls or be called on hold.

Compare to last stand on the additional call out of that in my initial recoverables are going to be secure and are therefore at this point inbound liquidity is adequate but we'll continue to evaluate options to shore up liquidity, while reducing debt.

The commitment to reduce net debt both in JLR NTM of fan, but we will look at absorption stream through of liquidity bullish inflows involved.

On the commercial vehicle side, I learn how to deal with accretion a minute or the market shares overall, Don for anything 0.6 fundamentally led by the salient than they see the segment.

Given and medium and heavy commercial weaker than Cds are actually were very very anemic at this point in time or we continue to be impacted by the supply situation because of the intimate unlocked phones with out there in various parts of the country and therefore this is going to be a challenge for us to address in this particular quarter forget that under control.

Lighting moves to a more to the mcmanus compared to the stop and start moderate. We're currently working on and progress you're going to talk a little bit about it as well for us.

Oh overall on the on the numbers are targeting 97% reduction in volumes and a nice introduction and our most profitable segment, which is what is causing the pain increase that is out there.

At this point in time demand remains muted. Unfortunately, there's no well make a fine for those that are green shoots and little bit tier under British we'll talk about and clearly the cause of concern on the equal financing area.

For the resin prices will be a cyclical as well as from the financial getting more consider too on the loan to value ratio very clearly the amount of equity that or.

The customer B to put them is increasing and we are working with an anchor to say what are the best way to market. While at the same terminal for them. So this is going to be a key piece of work products in the coming.

Okay.

Oh, great going ahead, it over to you on the demand side.

Yes, well as thanks.

So.

I think.

I agreement as well as you mentioned I think the industry will lapse barrels will still be paper. Thanks.

In Q1.

And we'll need exchange is talking company.

James on the Barbara.

And now for us before.

Corporate will more or both.

Are you seeing and stocking.

Because your stock is this year.

Monthly active users.

Excellent towards our because I look now and the full went against you drilled on so actually the act the will say, which we do have some will aim as we know.

On stocking of broker dealers to record level.

Hey comes to the demand situation.

No no two key points.

As well as you also mentioned that either finances.

Picking and.

But I must say.

There has been improving during the month of Julie.

So from as we move from fuel there has been an environment, where you're speaking or you won so that's some a silver lining no I think.

Well you issues.

Non.

I will also be useful and that is because it'd be useful as also I do the retail consumers are finding it difficult.

Okay institution is improving and you see this growing as we will further.

We have been engaging interventions to come up with new products, which actually some gives you.

Sure you might again, so CMBS pool on or do you booking cost of operations against those in.

Barack Obama doesn't siting and that's the kind of thing business, we are heading into an engine.

As far as.

Please turn to levels you see.

So.

You bet do these aren't fully owned stations Levy.

Builds so one sees that words they ended the quarter you've reached around since you've been 66% equal we lose those reviews.

Good afternoon, one can see annual CV outcomes of.

Isn't that option.

Big driver in labor and will be the season, you issue with the rewards migration labors are going to happen.

But we actually distributions, meaning we enhanced the few billions out of your daily.

The interest or gradually and be able to deliver back.

One key of course, you know like every year is that's running the regularly mining or he brings a section although you will see.

The new will you be coming up especially from a imaging.

In terms of who we are winning any ambiguity motorboat.

You mean plasma levels will not open and also most also starting working from home and as.

Question on southwest is also very very low and therefore amongst buses.

You do need to ambulances reduce annual saving lives I mean, it was mostly in stock, which formative requirements in quarter, one I'd like to yield was well we'll have some needle.

The government solicited spending in the medium in all of the sources Armando molybdenum.

Thank you.

You bet, which will be Ricci domain Oh.

You mean Cds sorry.

Looking ahead.

Some of the Greg sports.

As I said from really mean June the plan doesn't have any bring VW using green.

And.

Thank you see when all our workshops.

On really reach 100%, though.

The revenue level you from peak will be levels. So thats a very good sign.

Which means that.

The vehicles has continually and the job ours.

Well, when you're not workshops almost equally levels.

Really going on mute clearly very label with higher when we grow and as long as a good monsoon promising a bigger feature.

We see some of those green shoots in Steve.

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Especially is empty JV moments.

Marty will do so these are some of the annual sectors, which are who using their own.

Barry which are coming from a segment.

And even within that particularly once these higher demand for the last major distribution do have newsmen also mentioned, we therefore zillions of small go much in getting that are going to almost from pool.

80% of industry.

Connect one season, given the demand one of the light commercially so in terms of.

The Mark one correction antigens maximum in.

We live many commercial trucks as well as buses and didn't want these are slightly bigger in Iraq.

C.

So most I spoke about workshops are getting back to on your equally level, which is a good sign.

Now what do we continue to be able to be deal.

We also look at once interest among.

We see is whatever decision coming from.

Someone's tools in business, which we conceptualized kind of looking delivered these products.

And they are appreciating the implementing the global cost of ownership. So we therefore into leveraged use as we go ahead study.

Oh Gosh next.

So what does it.

We have is doing and more.

We continue to.

So on the sales and demand generation, saying anything.

Upscaling.

This was still a lot of work is happening who did you do need but the routine use as a bottoms is there is a lot of digital.

These feeling it just happens board will still holds a schools.

People are getting us comfortable in this of course.

The last mile Bar will converting that you will see which is about the document solution. The citrus continue and in some cases is also and over what.

We continue to engagements.

The customers and all of the stimulus in the system.

As I mentioned.

Then solvency.

And you do you.

The focus or communication as you my experience in the last Baltimore nowhere.

As you spacing strategies.

Greetings to more value communication and focus on market globally base.

And moving the performance to more and more key trends despite the will related difficulties.

We have.

So quarter over the value proposition in the product we are not me with the new value.

Users and move them I would like to each year removes one is about.

Uptime and turnaround time guarantee which you've introduced so as we will be essentially.

And you sectors. So.

Turning as long as the leader for the cities, where he bowman sector as well as you know that people.

Construction and infrastructure industry view among business that you said it was over 10 guarantee as well as turnaround time guarantees user who you are rich user interaction with customers and zero value to them.

And second when news as well as you mentioned in the BMW is about launch of.

Next generation.

You solution, which we have branded as a fee.

So the portfolio facilitates use tools in Boulder, three different fleet efficiency, why you averaging out, particularly platform, which is in fact common.

In terms of hardware and leasing software when that is among the easy but all applications are of course.

So my last fall.

This is a business unit. So this is.

The top importance of customers like you know reducing operating costs then.

Having better control of cash flows like then having integrated view utilization.

Having better to lower the.

And at times, but I will performance. So I think the purposive students will.

Well wait the customers.

To better control and.

Productivity to management asset management as well as business management, so through the first.

Well just on a maybe all the solution that new launch can you continue to come up with upgrades in Indonesia rewarded.

This will also further papers.

Sure.

Higher value building consumers, who digital needs.

Not getting turned demanding.

This concept of time, because it's a good run then I'd love for you more time for Q announcement. So if you were just yet.

I think we continue to focus on demand will he meant to volume Rambo. So a lot of focus on monitoring although they look like.

1000 lives when new sites are we monitor to ensure that we do have volume ramp up.

And also we are we continue to comply with all the safety garlands in standard operating procedures and grow the plans.

The focus on cost reduction in cash conversion proceedings. So I think when you were targets you said for answers the first quarter pockets doesn't matter on onboard and we also continue to develop the visibility for the targets for inter year. So we're on track on this.

So that technology back to you.

Thank thank your grace.

Okay moving on a passenger vehicles. So the key call out as the market share increased to nine in the up obviously the rain the new order would range as what are the new launches I've done exceedingly well products are obviously, the third quarter. So that will get ahead of ourselves, but quite pleased with the way the re imagining PV, but color.

But we have done that not starting the liver.

Do like continues to be strong as well so let's see how that frankly plays out.

I'd call out of the easy market share, which continues to do well for us at 62% as we've seen strong demand for the next on the there.

Going forward.

BNN wise.

Again, some phenomenal and operating deliberate story, the gifts that you're seeing out there and with the revenue drop of almost 60%. So we aim to reach EBITDA breakeven as early as part of this does not have confirmed but clearly we're seeing the momentum starting to build and would want to get us on as possible to where we were.

But at some Darryl bullets.

So there's going to head OTI.

Yeah, you want to thank you Banerjee. So let me quickly talk about the impact of tandem continue talking about teaching also PV industry, which show in Q1 declined by 70 person so talking about the demand so close club store.

Total industry sales in the to the industry progressively witnessed a vibrant and demand from me.

Ah, which was basically supported by a pent up demand pull slows down.

And we'll also demands from you will be a 600000 greater presence for personal mobility on to this cost cutting injection.

So in the quarter, they both stringent Caitlin symposium the country to start with which then transition to staggered start stops in just one part of the concrete.

It's actually created periodic disruptions photos.

Also the stringent guidelines that had to be pago triggered to use new wheels walking in the industry.

In EMEA.

We saw that both Piedmont collapsed leadership in Limbo transport segment are nearing will go from one policy Nike continues or a little stocking. So how attraction Boston segment has been as mentioned.

As continued on the each segment has grown compared to what degree will be so Q1 last year.

Well I'll sort of managing network operations is concerned.

Now onto the manpower challenges and constant in Turkey or.

Intermittent component was a very tough situation bottleneck look.

Inquiry generation was also a challenge because our board meeting in activities could not be done and this will also go as high dependence on digital inquiries 20 calls.

As far as for the lending environment than we did in general launches comes on the shelf in Dfc loan so significantly dropped from 25% of booking person.

It will really continue to approach in the uncertain environment and with the changing consumer crude oil mix, which was skewed more toward sandy them common customers should also opportunities has been slow increase and multiple deals also have sort of very strict sanctioning parcels.

On the mandatory or management of supply Oh for the month incremental.

They're going to and actually goes we're able to supply moved since may be little beneficiaries.

Business multiple challenges on the supply side or on so that the bond Parton contingency income is important to dynamically chick.

And to align the supply on so to that.

Mr Supply has worked with very high absenteeism.

Social distancing rules also on public asking or put as lets workforce could be deployed in the factory. So that one could compared to six feet social distance included Citroen and.

And sometimes with no significant bulking up 'cause efficiency issues. So this will be impact on the internet value chain. If you look at next please.

Yes, so on the floor.

Great. Thank you.

In diesel so Blanche optimal workforce, we saw in the industry. He can do not see vote on.

TD smoother supply situation, but one thing about operations our full smartphone.

Hi, Chris implementation will go smoothly ramped up during 2016 socially distancing guidelines.

Our manpower availability in the comment also on the potentially as you can see some signals here.

Production could only restarting the top amenity to boost that we have students attend generic too. So this really strong demand.

And sort of supplies will continue to starting with a very similar challenges on by June because some of them onto hydrogen corporations.

Manpower will enter into China, which orthopedic payments will improve in the case.

In this period in should that be or some supporting disciplines to overcome their financial consultant medical meeting once on sourcing of manpower.

Oh, and we have continued to ramp up our operations to so there's so many strong bookings that we have been sitting across India.

Next slide.

Yeah, so into something also really shouldn't multiple options for the Canadian coal.

On an NCCN cookie and focusing on will eat into will be booked well by aligning houses quickly to the changing demand cycle.

We also introduced integrators financings key so that you need and Justin So the customers example, buoy lumpiness teams.

And also the Max Mesalamine between supply and demand in challenging but in short, we're very close coordination among dealing since going back into it.

On the often seen say to keeping in mind, the health concerns of consumables and movement restrictions. So.

We reach out to customers for whom so this should get a vehicle on crude oil that special service, Oh, corporate volume, so and giving them the clarity.

Also we will believe limited on extending the warranty period analytical is exciting also ensure that sanitization measures and who you know safety on consumers want to continue loss.

No sort of network was consumed on Reimbursable difficulty report on channel partners.

And in the crisis period, we did extend best possible supposed to we're supposed to them to ensure that business continuity.

We actually leaders and incentives and small so so that you could help them get better profitability. These uncertain times.

And all we in this tough Peter the insured or constant engagement and better coordination with them. So that we could in short we didnt momentum on becoming sort of creating a win win proposition for both at almost as and deals.

On the digital initiative, which have become very crucial in the new model that has been evolving.

Oh, we activated or to drill support on when new generation, a booking interconnection that seems assistance.

Oh this will really made it can you need for the consumers and I think this will be increasingly becomes the new deals coming in the customer Jim.

Ah Onez cabin supporting deals in creating the pages to Google My business, which is helping them in local in high quality lead generation.

And also managing the pipeline in a customer relationship that though so.

We do business of all these efforts I think it's progressing Ben in it so we imagine engine to consistently.

So back to manage.

Thanks, or less link for what became the Tata Motor finance conscious of time Lebanese called the key points here.

This is a quarter very poorly everything on moratorium.

In terms of GMP, a calculations in terms of as both as being very very down. So therefore, it's been very quiet quarter, but at the same time, my third quarter, where lot of Solutioning has been done but the business to the good or better actually drive growth. What are the same time minimizing the portfolio risk as we look forward the coming quarters going to be very key.

Connections are very key focus area as the customer come out of moratorium be opting in encouraging trend of people wanting to pay and commit a therefore september going to be a key month and all that puts out there to ensure that we've learned that Lambert grip.

Our internal work on the board gearing up that light that's been a cost income ratio.

Which are continuing to improve that continues and the businesses are sufficient liquidity at this point in time. So this quarter. So is okay, let's see how the next for tractor demand and if we get that right I think that another player.

Okay.

Looking ahead I think are the key cohort I would be would say that book Gilat NTM on an overall group. We are committed to sustainable positive cash flows are and the wanting to ensure that we want to reduce net that significantly while becoming which already that's a big called the individual individual pieces of data as to what you talk about doing that.

Alignment and the messaging and the focus of video that part of what's on our teams are absolutely spot on with that let me hand here and handed back to four questions. Okay.

Thank you have already been I'll begin the kitchen Atlanticism Oh by the depends on the cards can use the chat bots up and that being at the bottom to submit their question Bill made for a moment, while they catch in December.

First question is from a throbbing Dupont, but team and a question you're going data.

The budgets and then it's a little surprising given the very high ERP.

China, both mix and deep GDP that the variable profit margin was not a stronger who will discuss the part that even negated impacts on the variable margin during the quarter.

Is it reasonable to say that Q1 will be the let level of the data protection.

And second totaling how compelling value that demand cadence during Q2 in Q3 will be higher than in June.

What level of year on year Martinez do you expect some driving easy mix in a fytwenty one but the their fytwenty.

Okay. Let me, let me take them in the order you awesome and so the elements of the mix and most of these shouldn't be surprising I don't think of see China North America actually V. Five both recovered a with a two regions that recovered quickest in the quarter.

They start to explain why the where the headline.

Gross revenue numbers per unit higher than normal.

Obviously, the offsetting factors here to some extent.

Manufacturing.

Print enough inefficiency, we had in the quarter, we start to show some of that with the de stocking line, but also the material cost adverse you'd see that we didnt.

Get as much TVN or cost reductions in Q1 for obvious reasons that 52.

Million pounds adverse is about a thousand panda power costs on a wholesale profile. So those are the reasons why is strong but reasons why and Robbins word it wasn't the words wasn't as strong as he would have anticipated.

From a run rate perspective, the second question, Yes, we do see the retail rate run rates increasing in quarter two versus quarter. One your specific question was June.

We'll start to see July sales levels.

Consistent with June actually, but if you look at our prior year profile, Jim was significantly higher than July last year. So on a year over year basis July will hold up very well versus prior year overall the quarter. The actual reduction to last year, we do expect to small reduction in retail, but nowhere near the 40.

2% level I think June was down 18% will be better than the in Q2 from a retail perspective, we do expect year over year reductions to increasingly reduce from the wholesale perspective were built it back up we will be higher in Q2, maybe 40, 50% higher than Q1.

And we're building about 80000 cars, so that should give you some direction about what the wholesale numbers in the optimum level would be close to being and the final one new US I think was about eight the mix well obviously it depends on what the take up allows the vehicles when they actually come to.

The market place et cetera, but I think it's reasonable to assume that like for like if we increase.

He the MP have sales the contributions going to be lower we know that and that's why the important data we shared earlier about our confidence in improving warranty our confidence in improving material cost in the second off here and in a very disturbed market Abbvie Emmy was.

Similar to levels pretty cold wed all of those all of those improvements will start to come through later in the year and offset.

May even be favorable to the P. have mix, we are seeing in the balance of the ship.

Yeah. Thanks, Edwin next question is somebody from Citi.

And you can you talk a bit on that that such does it reflect all the rest of the yet but the kitchen is also for the tachycardia excellent.

Okay. So the majority of the charge just over 80% of it was in the UK losses previously recorded as a deferred tax assets coal, which stopped that so we have to have confidence that we have a line of sight to solid profitability in the UK for that to reverse given.

Because of it is going to be with us in part next quarter. The dealer inventory reparation work, we need to do its most unlikely that will be no reversal in Q2.

We created the DTA add a Joe and the cost of last fiscal year I think of the backup to solid quarters of profitability. So you know if history repeats itself you need to see that before we actually start to replace it. It is China right. This is just time, whether it hits at the end of this fiscal year.

Early next fiscal year, it will actually show itself again as a deferred tax asset once we start to see those losses eliminated in aside to profitability.

Thank you very naturally some sign carrier from bank of America.

And the continued again, but they're not they're not a lot of Q1 charge less selling tied to what extent each at endo, but lower the cost.

Cost certain excels at beer little what other areas in which the likely to focus to achieve that by 21 target.

Yes, but it's interesting perspective to take that cost reductions were actually low because they are actually huge I.

I think you need to understand what the processes, we used to drive that we basically use a zero basing of spend in the quarter.

And that's why we actually have the dramatic impact within the quarter. So if you think that this is a demand led recovery for production. It's also a demand led recovery for expenditure and we will keep those processes in place until the revenues, we start to see come through probably throw into Q3 come back to a new.

Normal a normal level now underpinning that some of the other structural items that you would expect to see in terms of you will see the reported numbers around head Kate can't headcount levels continue to fall doesn't get pre charge headcount levels were 44000 people at the end of last year. They were 37.

Thousand 400, I believe and that'll be lower than that as we go through September. So some of the underlying physicals will start to reducing continue terrific juice as well as that zero basing so I think you'll be surprised the amount. We can do with these processes as we go through the course of this year once we actually start to see properly.

What the what the more certain revenue streams are later in this fiscal year. This will be a better discussion to have in terms of all have responses that need to be as a continuum.

Thank you.

Especially from Columbus dump them you get security.

That's really what percentage of even sales come from Germany.

What benefit do you see coming PCB facility.

So at a new sales from Germany, just under a quarter of our sales in quarter, one was from Germany.

So that gives you a sense of that will benefit that we say intensity increased avi subsidy.

In terms of huge subsidy is really difficult to tout, although history may repeat itself of course, we remind you when subsidies came into different markets, Netherlands, Norway and to the UK there was quite dramatic.

Response from customers for very shopper at a time. So it really depends you know how big those subsidies are how long they stay in place, but we do expect a improvement in those E V sales in the markets when they're announced.

No, but it wasn't have a huge in dramatic impact on our financial position of course, it will have an impact going forward on our compliance position.

Yeah, Thanks, Sachin Nexteras in its on track that somebody delight.

Personal against budget.

Let's just new launches of 50, new platform of R&D, both timeline and any delays in that.

And second question is hedge book is the had greater till favorable and what are the key monitors to watch notebooks.

And the telcos in United States Castex are likely to come back as business nominated.

So I take the first the first questions that specializations will be on sale as we come back from shut down later in the year from a 21 last year. They cost so think of and say accessible to customers from the second half of the are increasingly of course has ever along with our pipelines. So at.

Pipelines in UK in Europe are the shortest just says if you look it defend the profiles you'll get the same rollout by region and by market month. After month after month I'm going to raw Scott Frasier to answer the hedge rate question. If you don't mind bent and not sure I can answer that Adrian so the hedge rates on the key currencies.

Dollar Euro and.

Remember your CNH are similar to what we talked about when we.

When we have the call just about six weeks ago. So dollar relative to market rates is somewhat unfavorable our remember is somewhat unfavorable euros actually.

Favorable the.

The pound has actually strengthened against all the currencies over.

Over the last couple of weeks and it is actually the case that our hedge book is actually.

In a positive positioned hours, it's been in a negative position. So that's just because of the movement in the currencies, but it does depend overtime because it does include hedges that mature enough why 22, roughly 23 and and beyond in hedge rates are a little bit less favorable UNEV why 21, because we've still got small pre Brexit hedges.

Thanks, Ben and the last one I think we touched on a little bit, but let me, let me kind of come in it from a nother angle just just to make sure our response to the question.

I mean, we will build up the capacity come back some of that will be natural as a result of activity increasing we will be built in more cars, who will bring in more people back from for like to build those cars and the furlough offset monies from the government will go away of course, we will build up some of those structural costs I've mentioned not already but please be clear.

The increase in variable profits that we get will be greater than the variable costs and greater than the bill would have been structural cost, which is code for we will be profitable in the second half of the.

Thanks patron next question, it's some couple things from Nomura.

And he said congrats on but are there and the challenging circumstances and because since our first by JLR not looking on launching new beds as the have seems to have you electric on leading up around 20 might like the first question. Second question is can you. Please give some color on via the selling price for dealers increased so much what percentage of the then.

For a lot in Q1, if like when doing lots from Bakken oil and how they compare by your way.

Okay. Thank you well, let me talk about the perhaps first I range lumpy have the 66 kilometers for the 20 commodity viscose coming through not 20, now 66 kilometers in modest speak is about 40, rather than 20.

We are working on new Babs, we talked about those to some extent, though some of those programs through our investment reductions on the uncertainty of Q1 word Pelham post the XJ Bev specifically you know, but those programs are still in our portfolio platforms and once were confident those revenues.

Coming through and we start see the cash then you will start to see our responses on new Babs, we will indicate timeline for launches at this point in time of course.

Average selling price think I took a little bit the regions that came back with China, and North America that big actually be five regions and therefore, the average selling price on those vehicles are greater than regions like UK, and Europe, which significantly up as she will be three vehicles I.

F pace and evokes so the range Rover range I was spot markets came backs quickest that's why the average selling price was higher than you would normally expect what percentage of revenue for JLR in Q1, Fytwenty what was from vehicles sold and how does that compare year.

Yeah percentage of revenue from records sold off.

I see some percentage I guess the statue revenue would have past successes in there as well as costs and what else is a compared year over year, we were 53% and on volume and 44% them on revenue. So we are significantly lower year over year umbilical revenue.

Thanks patron.

Your next question is from like beneath candy and what that looks like.

And it's good shape, what would be the level of utilized it's an appliance now in July.

What is driving but sadly cokemaking religious and top 20 people stand by away any color you can give on Seattle non vacated venue.

Warranty cost sort of simple 3.94 think is sustainable at these levels.

Can you guide for the effective tax rate for Fytwenty, one leader or they'll catch and and then data in their business silica question any outlook for and mandates TVN as the volume pent up by 21 older Percussionists whenever there nothing really taking different yeah sure.

Okay. Let me hit some of these quickly level of utilization implants. In July 20 was still very low because we're still going for this demand left led recovery, which means dealer inventory falling which means the stocks already in place I wouldn't expect since you saw the plan Terra chips in place to install the whole.

And two in nature, I wouldn't expect that to bear out across the other plans until we get through to the back end of Q2.

And beyond your next question non vehicle revenues very light. We did we did we did dispose of some shares in the quarter for $27 million, but very light and then parts and accessories. You saw were significantly lower on a year over year basis. So overwhelmingly it was very cool revenues warranty.

The cost 3.9% is it sustainable at these levels, we believe unless we believe the underlying performance of our new vehicles coming through at 20 model year once they mature enough for us to actually assess as lower than 3.9% and what you find that with an AD warranty profiles increasingly issue goes.

Through the finished fiscal year. It's made about two modeling is only 19 in twentys. So we do believe we now are ahead of the data in terms of warranty costs and you will progressively see that to come through at the lower levels, probably in half two but certainly by she.

Q4 guides effective tax rate for 21 really difficult for me to do for full 21. It was a weird right to 57% in Q1 and I think if we didnt have the DTA adverse is it be something like 10%. So you know you know I'm not expecting those DTA adverse is to kick in again all river.

Yes, so your ongoing level to be in the 10% to 15% rather than the.

Rather than the we had 57% you had in quarter, one I suspect and longer term. It would be 20 to 25, new tanks and longer term 20 to 25, 90% in the UK and it's about 25% average outside the UK.

Alright guide on effective anymore I surveillance.

Sure. Thank they're doing a foreign capital just a question it any outlook for I mean, they CBNL CD volume in a fytwenty one.

And what would be the level of utility kind of plan now in July 20, part D than TV.

And can little Ghaleb, what would be the theater long, making the venue in might you have by 21, but they've been queue up by 20.

And then Omnichannel yeah.

Okay.

Yes.

So if it.

I think oh on the Internet TV in the World Class War fighter in doing.

I think we are.

Great quarter by quarter.

Very difficult to predict what's likely to happen almost for the entire year.

So first quarter.

Administrative volumes, there pretty low as the low.

Collapsing almost 90% I mean, we're looking at.

Order COO.

The.

Google industry Morgan upwards of two of the northern around that number that you'd be a good growth all you only.

But it needs to be or drop as compared to previous year.

I think voluntary year.

As there is.

Your next.

Lets surgeons everything again, one can see upwards of 30% growth.

Routinely minutes, we again, but I think you'll see something this year, we keep on watching Orkin Michael.

So what are the.

In terms of your commercial vehicles are concerned I think the then like you do slightly better as compared to women is still follow all year.

Well again see.

Around 20% or upwards and overdraw.

So.

Thanks.

That's the whole to forecast.

In terms of nine completions heading we are.

Running at around 20%, Oh and on an average GPC, let's delivered this year producing as compared to.

The LIBOR is one of course, that's in your cash initially and then the inflections are higher.

In terms of non recurring business you have revenue.

The Walgreens when do you guys.

Bonobos significantly UN more so because of who use inciting on workshops and come back a little normalcy Foster Magellan, let's do that were higher pardon me.

And.

So the vehicle sales revenue has been downsizing the revenue person business actually.

In season will now cans as compared to our levels in the past quarter acumen of last year.

Shallish or do you.

Well supercluster question regarding utilization, yes utilization outboard PBM yeah.

So actually it's talk a little lower level of 43% and in a period of time it has increased to 60% as of now.

And though we are maintaining at that level.

And also a plan for Cutia Corporation, so the citizens and SPV factory workers.

Sure. Thanks, but do you can you comment on the last patient Rami total cost at a percentage of sales declined sharply on fuel fuel basis, what would have driven but yeah. We are running on or about 70 York percentages are normal there. So maybe I'll need to take the question offline I understand what exactly great.

Of course is running at about 70 percentage is similar to what it will not impact.

Let me take because our planet.

Sure. Thanks.

Notwithstanding some promote from or Goldman Sachs.

And the question is a different on the vendor can you Peter it's clear that teekay orders into customer order and dealer test drive vehicles.

And second as Jay Let me highlight isn't that 58.4 key it's telling if the highest ever end up 20%, but those big jump in fact inability of that.

And Tony diabetic Fenty did a deal fell 50% year, Okay, what are the more sustainable levels off or.

I spent the as planned come back online.

Okay, let me take them and that all of this oh defend that customers versus dealer orders.

Any given datapoints somewhere between 35 and 40% of the number is actually customer orders the rest a dealer Otis and of course dealers are around the ordering caused that they do see customers for so that's that's why the size of the numbers really the most important piece here real.

Hi stations 58000 think we touched on this a couple of times, the China North America, They actually Wi Fi. If you know average revenues are always going to be higher when they're higher proportion of those sales has the UK and Europe start to come onboard actually from June and July onwards, the average.

Will fall in quarter, two a closer to normal levels I would suspect obviously exchange rates being a piece of that other expenditures I think I refer tier two they charge slide with this we said 500 million pounds in quarter, one and we've set off for the rest of.

Go as costs in profit So let me say 700 million and the rest of the year and if you work that 700 million over three quarters versus 500 and of course, you get a again that same 35, 40%. We believe is sustainable and will flow for fiscal year 21, but will be much better to onto these.

Questions when we start to see Q3 outlook.

In October as referenced earlier.

Yes.

Oh, thank agent or metrics an example.

So when I looked again chocolate candy.

Well.

And that is the structural in nature.

I think I think advances that when a couple of times already actually.

Yeah, I'll refer to my previous ounces on that one.

Okay. Thanks.

Our next question, it's Tom Alexander modeling and is from Goldman Sachs.

A question it in your deal based here.

The timing in part by 21, and quite frankly to would it be fair to assume a fighter.

Yes, I do want to.

And then there's a housekeeping question on couldn't be public finance as opposed to head up on exports.

Okay, having the you're breaking up so can you just repeat the question whether or the okay. Okay. The first question is the what volume picks. It are you planning bought in their fytwenty wanting their fytwenty too.

Would it be paired with human fytwenty when they become I think would be similar to what you.

And then there's a housekeeping question. Please put up until the couldn't be published I jumped on the call.

So let me take the first one or the first one I think we reference to some extent an earlier question.

Our retailers will increase from the level, whereas.

But one sweep destocked the dealers switch over ironwood do and at the end of by the end of September you will see quite a strong increase in revenue and wholesale volumes in cash and then of course and EBITDA margins as well. So you should expect improvements progressive late.

Summing Q2, but more dramatic in the second half of yet.

Yeah, Let me take the house question on the financial before so.

The listed because really take today for him. So you don't put at about four Turkey, India time, and we've talked in the call. It 630, so we put it up about 2312 hours before the call.

It all of those accounts to go through the day and normally should expect admitted to stock exchange.

But then the website also gets updated immediately.

So there's a problem that you had been married accessing the upside do let us know legal figured out of a figure out what happened to begin with.

Hi.

Gentlemen, just would like medical note my shrunk.

Okay.

[noise] using to time, because senior to the time stronger because every month. So good evening to everybody from mine site.

Strong.

It's one already has presented to you protection Chicken Sandwich explained to you is huge step of the chair long to Miss made in discussing coming so no further elections for me no repetition.

Yeah, So very long preliminary immediately media screens Gary.

You know one that I wanted to share. This and you know we don't have you referenced that some of them until September. So it's my very very last investor call. This year to date.

And the once you take the opportunity to say chose hsinchu sanctioned to own a few and on the other hand I want to see compliant.

And some of you witnessed the development of check where inland program from more of them 10 years with me.

And we have talked I am just crossed use each other opens up very long period of time and 4 million over north of four you times flying very much.

And if you recall at the time when we started.

Assess today's levels.

You see a huge difference what a difference at all and if you look back at the time, you'll see that we had no scandals.

I'm proud to develop quietly we delivered outstanding products for our customers really Miss integrity.

One more prestigious awards from companies was easy much become Archer structure, we're one quarter to your hopes that works for design and Engineering Awards for technology.

Can you parse evoked I'd pays to belong on all the letter last December.

By the way somebody asked about the oldest please take an order of tigon defender because it's a sensational vehicle on an offshore or think about the electrification searching [noise].

Good evening, leading in connectivity and autonomous new entrants you peers. So we're really focused on destinations here.

Our product portfolio today is outstanding and will be new with is absolutely nothing I.

I can tell you without leaching anything.

As exciting products in the pipeline.

And I want to thank you really want to thank you for your challenging discussion progressions and critical reporting.

But you really are reported on that on value very much to the maturity of on structured in a very savvy.

Thank you very much for your feelings.

Hi quality.

Of information for your customers and especially in this very very special channels in the very concerns.

You know that check or length, there was a special company.

It's two iconic authentic brands and really passionate and their heart on for right place employees.

So together, we have really transformed check remember within a very small national village in this into an international respected company.

There's been a long vary but I can only tell you where every step.

So as long as issue.

All.

Personally good luck with a lot of success and the local service sections of future and want to say take here about yourself.

And again, thank you very much good bye.

Thank you settled but.

Next question is something I think from Morgan Stanley.

Well what is the cash tax payout in Q1, Ngls and how is the profitability of the has.

Okay. I think that's me again, so I think in the first kept the slides every year I mentioned there were two elements, we talked about the deferred tax the other elements as taxation in overseas subsidiaries, where we make a local profit was subject to local jurisdictions jurisdiction taxes and mention.

And up to the 25% level, that's what the payments for tax in local.

National sales companies jurisdictions overseas territories.

The other one p. half at look what we're obviously estimating guessing MDP EPS, we come to south when did they come into the marketplace. We all know the cost at the batteries and the propulsion systems with P. apps are more expensive.

We only had 2% of our volume P. have in quarter. One we do expect that to grow from half to onwards. So we'll have a diluting impact on margins in itself, we will price, where we can of course, where the competition prices, but whatever diluting impacting margins in itself and again.

Go back to the earlier discussion is starting to see warranty improvements via may stability when it shouldn't be stable.

And our work on material cost and ignite order in place.

To make sure that we can be compliant and make sure we can offset in even grow and margins in a compliant p. have well with which is what I jump is to do.

Thank you thanks.

Thanks Edwin.

Next question it sounds like the talent from excess capital and Chrysalis in Slide 20 Bible pain Mr. Tpd you have explained detailed breakdown of cost savings from project chocolate.

Can you explain in there can be daily basically bought those saving of GBP 130 million in common kill me.

Also how much of employee cost sort of finished temporary in nature.

Okay first one so I, we measure the program its year over year, So 131 million pounds reduction in the quarter, one is versus core tier one F. Like 20, and you know all of the cost we haven't at commercial wells assigning costs, all the national sales companies.

And the people in the national sales companies and the cost of running those companies as a part of that well also AFX marketing investment advertising manager a part of that as well. So in total commercial weld advertising marketing selling costs and the people are working.

Compared on a year over year basis hundred 30 million lower.

And actually employee cost is temporary in nature, but there's two pieces of this of course is a piece code furlough, which we call them in quarter 140 million that will reduce in Q2.

As those entitlements that the government are offering reduce but also as we bring a lot more people back into the organization. We had 20000 people out in April we had around 10000 people add on furlough in July so that was not as will be less than half in Q.

Two and then eliminate to zero in the second half of the yet. However, I've also mentioned that the the absolute number of people within the organization continues to fall down to 37400 in March and now that will reduce or two or 3% and the first half.

And continue probably in the second half as well. So you have a ongoing pace, which is underlying which is lower code headcount cost and reductions, but we will lose the benefited for a lot.

Well thank Patrick.

So.

Based on the elected.

Does the noise around you get China, political and impact your business in China, both important JV.

The real hot tea leaf RC.

As is still on the call.

Okay.

Hello.

During the question it doesn't rise around UK, China political dental impact your business.

In China, both important JB.

Ah, yes, but to what extent right I mean, we thought that we built up and rebuild to super business in China.

We expect to continue to be able to do that going forward look there's a lot of political noise. We all know what we'll hear it in a we are the biggest you know Indian company in China right. So that obviously has an impact also no at business model is lane, it's not overexposed it balances on the fundamental.

And all I can continue to say to you you know in a stable operating environment. It will continue to be valuable and it will continue to grow I can't comment beyond the risks we all see in terms of any point in time, and we'll incident happened if it impacts just like coal Wade will find a way to absorb it but of course, we wish front not to happen we.

Wish for that you teased out of being put in place within different nations are taken away because we all know that economies work better when trade is free what we wish for may not happen, we'll respond if anything bad happens in the meantime, a lean efficient pipeline annaly inefficient businesses, what we're striving to achieve them making.

Huge progress on.

Sure.

Thank you Karen.

Next question, it's something that will enable from NK globally.

And then considering the company has lost market share in China luxury segment, what are their efforts will begin market is right.

And on developing Bicuar, she is our automotive reimbursement expected I.

I think that what already up on it what is a method of calculation.

So net on Gilat electrification gordmans, our government subsidies are expected to support the market.

Yeah and competition. It also been aggressive enhancing electric vehicles, what do you not to be able to competition.

Okay. So let me take them in the order. So the first one lost share in China in luxury segment.

Yes that volumes are increasing in China, it's not just the volume game for us right.

I mean, we talk about the quality of sale a lot.

And the quality of sale is hugely important in China, and you look behind the transacting prices.

The discounts, we given on our vehicles.

Over the last 12 months have been significantly lower than 12 months earlier and that means you know dealers at discounts and less that means they are more profitable and that means variable noxon, we need to offer to get the sale actually closed is less so we think we got a good model with.

And can model as balance between quality of sale and absolute number sales.

And you will start to say and you have start to seen on a year over year basis. It's the value that's driven from that type of model on employee costs, you've mentioned I have talked to that so when I talk to that again I think I talked to the next one is why electrification government subsidies and markets support we do see.

You know an aggressive response when that happens as mentioned, Netherlands, Norway, UK and that will happen again.

Should other governments also also participate I mean, you know our view is.

In this wonderful destination to go to net zero.

No governments will need to find a way to invest heavily in infrastructure and incentivizing customers. Because you know everybody may want this to happen, but nobody's, particularly happy to actually pay for it.

Right. So we will take our share we are taken our share but you know.

The other.

Areas like government will need to take their shares are particularly if they want to increase the speed of chair of change, which we would be supportive of also.

The other ones at T M. Our question I think yeah.

I certainly don't MLP, because it really isn't what is the expectation on timeline to.

He's looking for a strategic or financial partner and then he collateral interest by potential partners.

Our order conservation you're.

Because the borders or approved the scheme that we'll be fine, but the C.L. king and the coming week, we will be doing that.

And Oh.

We are expecting anywhere remained 12 month as a kind of timeframe for completing the subsidiary process. So keep up.

Uh huh.

Oh Packard away something we speak to lot of Williamson hasn't been something that's cool Richard.

Oh.

One last question I think you're going to running on a fun.

Lastly, so.

I'll take the last question from.

Oh I think next in line with ER.

I run my yet so do I see I'd be enter could you. Please give an ideal ultralight demand has been and also the expect pent up demand read through to the where do we see the demand in medium to long term, but it's pent up demand.

Nothing we have been Balkan general random yet.

Yep, calc, you're making as demand side as I am.

So I think a difficult worried at this point on how much of it it's been almost over the course to chip away from share mobility. The too many offices all objects served as a minute ago. So I think we need away from our New York.

But I can actually positive news before that able to start reading.

The quarterly after bad with Uh Huh.

Sure. Thanks Malady. So this does conclude stuff content or from outside of what you put a faulting.

Yeah. Thank you. Thank all of you I think a appreciate that it's been a intense fuel so friction that have been going through but that's something that's possible that you're able to send us assemble the cities and.

Forward to staying in touch with you guys in the coming quarters as well, thanks work stream and speak to your so thanks so much.

And the assets that I'm, what does limited that concludes this contract. Thank you for joining US and you may now disconnect. Your lines. Thank you. Thank you.

Okay, one down.