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JAGUAR LAND ROVER & ITS SUPPLY CHAIN Mike Mychajluk Supply Chain Projects & External Engagement May 2017

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Page 1: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

JAGUAR LAND ROVER & ITS SUPPLY CHAIN

Mike Mychajluk

Supply Chain Projects & External Engagement

May 2017

Page 2: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

WORKING WITH THE AUTOMOTIVE SECTOR

Page 3: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

Automotive Council UK

The Automotive Council was formed in 2009 under Labour; our Sector flourished under Liberal

Dem/ Conservative Coalition; entered a new era with the Conservatives:

To strengthen and promote sustainable growth of the automotive sector in the UK through

enhanced dialogue and co-operation between UK government and automotive industry

Leadership

Industry Chair

Nigel Stein

CEO - GKN PLC

Expectations:

• Need to deliver more for less using the Momentum established in the last 5 years

• Greater Devolved Application - Midlands Engine, Northern Powerhouse, Growth Hubs

• Government continues to actively support the Automotive Industry

• Strategy adjustment post Brexit – weaker currency, trade uncertainties, labour movement

Government Transition:

Automotive Industrial Strategy

Advanced Propulsion Centre £1Bils over 10 Yrs

Automotive Investment Organisation (AIO)

Business Environment, Supply Chain

& Technology Groups

Joint BBA ACUK Forum

Department

Business

Energy

Industrial

Strategy

Page 4: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

4© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated

with KPMG International Cooperative, a Swiss entity. All rights reserved.

160

XJ

XFXE

F-Pace

UK OEM PASSENGER VEHICLE PRODUCTION FOOTPRINT

1.7 Million Cars = 17 Year High = A Car Every 20 Seconds

Mix of UK production, number of vehicles in thousands

2016 – 1.7 Mils Units (8.5% Growth) 78% Exported/ SMMT forecasts over 2 Mils Units in 2020 (4%pa)

Source: SMMT

Compact MidsizePremium/Large/SUV SportsTaxiSub-compact

310

Qashqai

Production by Model vs 2015 + Increased/ New Model – No Significant Change – Decreased/ Model on Run-out

Further new models are expected in 2017 adding further power to the UK Automotive Industry. Mar 17 YTD 7.6%

Ja

gu

ar

La

nd

Ro

ve

r

508

Nis

sa

n

544

55

Leaf & Note

110

Juke

12

Bentley

Va

ux

ha

ll

180

144

Auris

36

Avensis

Oth

ers

23

1 MG

Ho

nd

a

118

To

yo

ta

134

76

Civic

58

CRV

BM

W

215

Astra

12

F-Type

372

Range Rover

Range Rover Sport

Range Rover Evoque

Discovery Sport

Discovery

Defender

9

AML

McLaren

Lotus

Morgan

Caterham

1 LTC

33 Infiniti

211

Mini

4 Rolls Royce

Page 5: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

Confidential ©2015

BUSINESS OVERVIEW AND PERFORMANCE

Page 6: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

LEADING THE AUTOMOTIVE SECTOR

The performance SUV is the fastest selling model Jaguar has

produced and is only the second vehicle to claim the historic

double of the World Car Awards. To win the pair of trophies,

the F-PACE saw off the competition in a vote of 75 influential

motoring journalists from 24 countries.

MADE IN SOLIHULL

Page 7: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

JAGUAR LAND ROVER

7

Economic Impact

• Jaguar Land Rover supports around 275,000 UK jobs

through its service providers, supply chain and R&D

businesses, including its own UK employees.

• Jaguar Land Rover has increased its UK workforce by more

than 20,000 people in the last five years to 37,000 in 2016.

• Jaguar Land Rover’s UK supply chain has increased its

workforce by 60,000 people in the same period

• In June 2016, Jaguar Land Rover was ranked 8th in

LinkedIn’s 25 Most Attractive Employers in the UK list

• In January 2016, Jaguar Land Rover was named ‘Best UK

Employer’ by Bloomberg.

• The largest investor in automotive R&D and engineering in

the UK

• 80% of production exported from three plants in the UK

representing 8% of UK manufacturing exports

Page 8: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

SUSTAINED UNIT RETAIL GROWTH DRIVEN BY GREAT VEHICLES

144

181

252

316

354

385

427 431

52 51 54 5980 77 95

173

196

233

306

375

434 462

522

604

0

100

200

300

400

500

600

700

2009 2010 FY12 FY13 FY14 FY15 FY16 FY17

Land Rover

Jaguar

Jaguar Land Rover 13%

22%

16%

6%

EUROPE

23%

UK

21%

Overseas

15%

16%

2017 CY Mix

China

21%

North

America

20%

000’s

CAGR 15%

Page 9: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

JAGUAR LAND ROVER 2016/17 FY Global Sales *

*Including CJLR sales

Jaguar Land Rover Reports Record Sales

Jaguar 83% Growth as the new F-Pace hits the market, Land Rover 1% due to run out of Discovery.

Fuelled by production increases both in the UK and Abroad (Brazil & China)

Market Year to

Mar ‘17

Performance

Europe 141,043 13%

China 125,207 32%

United Kingdom 124,755 16%

North America 123,527 24%

Overseas 89,477 (6) %

Total 604,009 16%

Sales by Model Line

Model Line Share Growth Model Line Share Growth

21% 32% 8% 25%

19% 3% 7% (18)%

15% 3% 6% 9%

11% New 2% (2)%

10% (4)% 2% (9)%

Sales by Geographical Region

Page 10: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

JAGUAR LAND ROVER JOURNEY

10

2009 - 2018

2010 £0.8bn 2011 £0.9bn £1.5bn2012 2013 £2.0bn

£2.0bn2014 2015 £3.1bn 2016

£2.4bn

£3.1bn

2017 £X.Xbn 2018

XF Long Wheel Base

XF

RANGE ROVER VELAR J-XXX I-PACE

Page 11: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

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INVESTMENT & INNOVATION WITHIN THE TATA GROUP

– Creating the World’s Most Stunning Showroom

4 x 4

£ 16 Billion

Invested to the

end of

2016

All

New

Models

Under

Tata

Page 12: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

RUNNING TITLE ARIAL16PT BOLD (EDIT IN SLIDE FOOTER)

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Page 13: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

I-PACE conceptJLR’s First Battery Electric Vehicle

• All-wheel-drive from twin electric motors

• 500km range (NEDC cycle)

• 0-60mph in 4 seconds

• 90kWh lithium-ion battery

• Rapid charging takes 2 hours

• On the road in 2018

JAGUAR I-PACE BEVMORE TO COME IN 2017 AND BEYOND

Page 14: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

JAGUAR LAND ROVER

14

Investment in Facilities and Vehicles

• New £20m Technical Centre to undertake manufacturing, personalisation and

commissioning programmes for JLR Special Vehicle Operations division.

• Invested £1.5bn in the Solihull plant in the last 5 years.

• £400m invested in the Castle Bromwich plant in support of new XF - the

largest single investment in the history of the Castle Bromwich plant.

• Investment: £500m invested in the Halewood plant since 2010.

• Investing £450m to expand its Engine Manufacturing Centre –

site totals £1bn.

• The £150m National Automotive Innovation Centre (NAIC) will open in

second half of 2017. It will provide a state-of-the-art facility for JLR’s

advanced research team and collaborative partners from academia, the

supply chain & other industries.

• JLR’s UK Supply Chain has invested £2bn, & there is a further £250m in the

pipeline

Page 15: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

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JAGUAR LAND ROVER

Our Investments Flow into the Supply Chain

Whitley, Gaydon, WMG - NAIC

Electrification

Technologies

Connectivity

Technologies

Investment in Research &

Development CentresInvestment in Manufacturing

Facilities

EMC, Solihull, CB & Halewood

Maximising

Productivity,

Industry 4.0

Establishing

Trading Links

Skills Strategy & Learning Organisation

JLR Processes, In Plant

Learning, Maintenance

Course

Using the JLR

Brand, Referrals,

Skills Show

Investment in Skills, Training &

Lifetime Learning

WHS Plastics

400 Trained

150 Promoted

Collaborated in APC

Investing in New

Prototyping Centre

Moved

Production from

Italy to UK

Page 16: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

What is the Secret to their Success?

SCALE UP SUPPLIERS

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INDUSTRY STANDARDS

BASE ENTRY

REQUIREMENT

CURRENT BUSINESS STATE & POSITION IN THE VALUE CHAIN

ON WHAT BASIS DO YOU COMPETE?

UNIQUE SELLING POINT (USP)

Improved Quality; Cheaper; Guaranteed Delivery; Flexible; Greater Reliability; Innovative;

That Unforgettable Customer Experience

CLEAR STRATEGY

MATCHES YOUR CUSTOMERS’ & FUTURE CUSTOMERS’ STRATEGY

I UNDERSTAND MY CUSTOMERS’ STRATEGY & BUSINESS

ACHIEVE CUSTOMER

SUPPLIER PARTNER

RELATIONSHIP

Strong commercial &

engineering links

Page 17: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

Confidential ©2015

LOOKING AHEAD

Page 18: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

Land Rover Discovery Sport

Land Rover Evoque

Jaguar XFL

Land Rover Discovery Sport

Land Rover Evoque

Jaguar XE

Jaguar XF

Jaguar XJ

Land Rover Discovery Sport

Land Rover Evoque

Page 19: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

JAGUAR LAND ROVERManufacturing and Product Development Facilities

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Page 20: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

20

JAGUAR LAND ROVER

Growth Opportunities & Threats

Traditional

Automotive

Technologies

Advanced

Propulsion

Digital

Revolution

Gro

wth

Op

po

rtu

nitie

s

En

co

ura

gin

g

Do

me

stic G

row

th &

Ad

dre

ssin

g

Str

uctu

ral W

ea

kn

esse

s

Attra

ctin

g F

ore

ign

Dir

ect

Investm

ent

5 year forecast £20Bn Revenue, 50,000 New Jobs Attrition to the 100,000 Jobs created in the last 5 Years

Gro

wth

Th

rea

ts

Off Shoring

pressure > Re-

shoring actions

Decline of ICE

not balanced with

Electrification

investment

Digital Revolution

requires

significant R&D

La

ck o

f Co

nfid

en

ce

in U

K

Su

pp

liers

to In

ve

st &

Imp

rove

Pro

du

ctiv

ity

Mu

ltina

tion

al C

om

pa

nie

s m

ake

Glo

ba

l Inve

stm

en

t De

cis

ion

s

Industrial

Strategy =

Competitive

Mixed Offer

- Free Trade

- EU Labour

- Skills Support

- Accelerated CA

- Land/ Planning

- Grant Incentives

- APC/ Innovate

- AIO FDI Exports

- Competitiveness

Analysis & Support

Page 21: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025
Page 22: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

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MULTI MODAL TRANSPORT 2025

– The Total ACE Journey Experience

Ticketing

Self Parks & RechargesJIT Drop Off

Tracking

Page 23: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

“Creating Our Own Positive Advanced Manufacturing Future”

Yesterday Breakthrough

Thought Small Thinking Big

Planned Small Planning Big

Delivered Big Delivering Bigger

JAGUAR LAND ROVER IS EVOLVING AS A COMPANY

Taking action & assuming

responsibility

Investing in skills and

our people

Seizing

the

initiative &

taking

calculated

risks

Open to

global

cultural

diversity

Over

coming

resistance

& being the

architects

of our own

global

success

Tomorrow – All car

companies will be

technology companies

Page 24: JAGUAR LAND ROVER & ITS SUPPLY CHAIN - Drive … · jaguar land rover & its supply chain mike mychajluk ... industry standards base entry ... multi modal transport 2025

Jaguar Land RoverW/1/41 Abbey Road, WhitleyCoventry CV3 4LF, UK

jaguarlandrover.com

THANK YOU Mike MychajlukSupply Chain Projects & External Engagement

[email protected]

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