Jaguar LandRover - comment

We were a little disappointed by further semiconductor supply issues which impacted production in the quarter. The rest of the results are in line with previous guidance and market expectation. The positives are the increasing order book and the production ramp-up of Range Rover and Range Rover Sport. Inventory in the system (dealers and JLR) still remains below target range highlighting the issue of supply constraint. In summary, production was lower than expected but with strong order books and lower inventory, expectations for upcoming quarters remains strong.

JLR fielded several questions on their balance sheet and upcoming maturities. JLR are in a strong position with significant cash of £3.7bn which would meet upcoming redemptions to beyond CY24. This is without touching the undrawn RCF which matures in CY24. The Company acknowledged they have commenced discussions with their banking Group to extend and potentially upsize this facility. In relation to JLR bonds maturity profile, the Company sees current levels too wide for any refinancing and are likely to wait until semiconductor supply issues abate before trying to extend their maturity profile.

We will update our model later, but we don’t see any significant changes to it.