JAGUAR L AND ROVER AUTOMOTIVE PLC

A N N UA L R E P O RT 2022 / 23

Regis tered Number: 06477691

CONTENTS

Fiscal year at a glance 3 D IRECTO RS’ REPO RT

Chairman’s statement 4
Directors’ report 65
Chief Executive Of ficer’s statement 5

OUR BUSINESS F I N A N C I A L S TAT E M E N T S

Our purpose and strateg y 8 Independent auditor’s report 69

Our business model 11 Consolidated income statement 80
Our year in review 12 Consolidated statement of comprehensive 80
Operating environment 15 income and expense
Global retail sales 16 Consolidated balance sheet 81
Chief Financial Of ficer’s statement 19 Consolidated statement of changes in equity 82
Consolidated cash flow statement 83
Notes (forming part of the consolidated 84
financial statements)
S U S TA I N A B I L I T Y
Parent company financial statements 151
Introduction to sustainability 24
Sustainability governance 26
Introduction to Planet Regenerate 27 APPENDIX 1
Introduction to Engage for Good 30
Global Reporting Initiative (GRI) content index 165
Introduction to Responsible Business 32
The United Nations Sustainable 40
Development Goals (SDGs)
Per formance data tables 42

DEFINITIONS

J a g u a r L a n d Rove r Au to m o t i ve p lc i s r e f e r r e d to a s
GOVERNANCE
t h e C o m p a ny.

Our approach to risk 45

J a g u a r L a n d Rove r Au to m o t i ve p lc a n d i t s s u b s i d i a r i e s
Principal risks 46 a r e c o l le c t i ve ly r e f e r r e d to a s t h e G r o u p .
Introduction to governance 50
T h e J a g u a r L a n d Rove r Au to m o t i ve p lc B o a r d i s
Leadership 53
r e f e r r e d to a s t h e C o m p a ny ’s B o a r d o f D i r e c to r s .
Ef fectiveness 58
Accountability 60 J a g u a r L a n d Rove r Li m i te d i s r e f e r r e d to a s J LR L .

Investor relations engagement 62

T h e J a g u a r L a n d Rove r Li m i te d B o a r d i s r e f e r r e d to a s
JLR’s approach to tax 63 J LR L B o a r d .
F I S C A L Y E A R AT A G L A N C E

J a g u a r L a n d Rove r (J LR)’s Re im a g in e s t r ate g y is d e l i ve r i n g a su s t a i n a b i l i t y- r i c h v isi o n of m o d e r n lu xu r y by d esig n .

We a re t r a n s f o r m i n g o u r b u si n ess to b e c o m e c a r b o n n e t ze ro ac ross o u r su p p ly c h a i n , p ro d u c t s , a n d o p e r at i o n s by 2039.

Ele c t r i f i c at i o n is c e n t r a l to o u r s t r ate g y a n d we w i l l i n t ro d u c e a l l- e le c t r i c v a r i a n t s to a l l o u r b r a n d s by 2030.

F Y2022/23:354,662
R E TA I L S A L E S 1
F Y 2021 / 22: 376 , 3 81
354,662 U N ITS F Y2020/21:439, 58 8

F Y2022/23:£22.8bn
REVENUE3
F Y2021 /22:£18 . 3b n
£22.8bn F Y2020/21:£19.7b n

F Y2022/23:£0.5bn
FREE CASH FLOW1
F Y2021 /22:£(1.2)b n
£0.5bn F Y2020/21:£186 m

F Y2022/23:£3.0bn
NET DEBT1
F Y2021 /22:£3.2b n
£3.0bn F Y2020/21:£1.9 b n

P R O F I T/ ( L O S S )
B E F O R E TA X A N D F Y2022/23:£(64)m
EXCEPTIONAL F Y2021 /22:£(0.4)b n
C H A R G E S1,2 F Y2020/21:£0.6 b n
£(64)m

1 Please see note 3 of the financial statements on page 89 for alternative per formance measures.
2 Please see note 4 of the financial statements on page 91 for more information relating to exceptional items.
3 Please see note 5 of the financial statements on page 93 for more information relating to revenue.

A n n ua l Re p o r t 2022/23 3
C H A I R M A N ’ S S TAT E M E N T

NATARAJAN
CHANDRASEKARAN
CHAIRMAN

The financial year 2022/23 has posed a difficult business environment The transformation of Jaguar into an all-electric luxury brand is on track
with several headwinds for the Company. Jaguar Land Rover has had to with first new vehicles to be launched in 2025.
contend with the shortage of semiconductors and challenges in energy
supplies in the aftermath of the war in Ukraine leading to a battle against I am also pleased to see Jaguar Land Rover’s collaboration and active
inflationary pressures. partnerships enabling it to leverage synergies across the Tata Group of
companies.
In this context, I am pleased that the Company is progressing well in its
transformation journey and is set to become a modern luxury vehicle I also would like to take this opportunity to thank Thierry Bolloré, for his
business, with sustainability at its heart. contributions to Jaguar Land Rover during his tenure as the CEO.

After a challenging start in the first half of the financial year 2022/23, the JLR ends this financial year in a stronger position, with a portfolio of
Company has delivered a resilient performance in the second half, with attractive products, a healthy bank of customer orders, and a clear
a consistent rise in wholesale units. The Company’s efforts to address strategy, to reimagine its renowned British brands for global clients.
the supply chain challenges have started to yield results, enabling the
Company to increase the production of the New Range Rover, New I remain excited for the electrified future of all our automotive brands,
Range Rover Sport, and Defender vehicles. and by the passion, energy, and commitment of all our colleagues and
partners, to achieve more, not only for our business and clients, but our
This improving trend resulted in full year revenues for FY23 of £22.8 communities too and to set new standards in technology, manufacturing,
billion, up 24.5 per cent vs FY22. Meanwhile the FY23 Adjusted EBIT and sustainability.
margin1 of 2.4 per cent and profit before tax of £97 million was a marked
improvement from the (0.4) per cent Adjusted EBIT margin and £(455)
million loss before tax in FY22. Full year wholesales of 321,362, in FY23
were up nine per cent compared to a year ago.

Key milestones driving the transformation this year were the successful
N ATA R A J A N C H A N D R A S E K A R A N
global launch of the award-winning New Range Rover Sport, joining the CHAIRMAN
New Range Rover in defining the Company’s modern luxury philosophy Jaguar Land Rover Automotive plc
to the world, as well as expanding Defender collection with an eight-seat 1st June 2023
130 model and introducing new electric hybrid powertrain to the Range
Rover collection.

1 Please see note 3 of the financial statements on page 89 for alternative per formance measures.

A n n ua l Re p o r t 2022/23 4
C H I E F E X E C U T I V E O F F I C E R ’ S S TAT E M E N T

ADRIAN MARDELL
INTERIM CHIEF
EXECUTIVE OFFICER

Throughout the financial year 2022/23, we have continued to deliver pure-electric Range Rover, for which we will start taking pre-orders later
Reimagine – our strategy to realise our vision to be proud creators of the this year.
most desirable, modern luxury brands, for the most discerning of clients.
Meanwhile, we have announced that the first of three breathtaking new
We have maintained momentum under the extraordinary global Jaguar designs will be a 4-door GT, built in Solihull with power output
pressures of semiconductor constraints, inflation, and geopolitical more than any previous Jaguar and a range up to 700 km (430 miles).
instability, alongside ongoing effects of Covid-19.
More details of the new Jaguar designs will be released later this year,
While we have not escaped the effects of these global factors on our before going on sale in selected markets in 2024, for client deliveries in
operations, I am pleased we delivered a resilient performance during the 2025.
year, to deliver on our wholesale commitments in quarters three and four
and return a profit in quarters three and four. As we prepare for our electric-first future, we are taking steps to ensure
our people have the skills vital to electrification, digital and autonomous
This performance has laid the foundations for our future success and cars. To this end, we launched our Future Skills Programme in September
growth, and the continued realisation of our strategy. 2022, to train 29,000 of our workforce for our modern luxury, electric
future.
As we reimagine how we engage with our clients to serve them with
a true modern luxury experience, we have chosen a House of Brands We also strengthened our engineering capability to deliver electrification
organisation, to amplify the unique DNA of each of JLR’s brands - Range with the arrival, in April 2022, of Thomas Müller, who was appointed as
Rover, Defender, Discovery, and Jaguar - and accelerate the delivery of the new Executive Director of Product Engineering.
JLR’s vision to be proud creators of modern luxury.
Then, in July 2022, we appointed Barbara Bergmeier to the newly created
By taking this approach, we will grow each brand’s individuality, position of Executive Director, Industrial Operations, uniting the areas of
desirability and appeal in a way that meets the unique needs of its global manufacturing, purchasing and supply chain.
client base.
Under Barbara’s leadership, we established a dedicated semiconductor
Range Rover, Discovery and Defender will continue to bear the trust taskforce. The taskforce has made significant progress in greatly
mark of Land Rover. The Land Rover name will remain on our vehicles, increasing our visibility of risk, securing chip supply, and stabilising
reinforcing our all-terrain credentials and technology capabilities. production as we’ve emerged from the Covid-19 pandemic.

This year we expanded our Range Rover and Defender collections and Since she joined JLR in July, Barbara formed deeper relationships and
introduced significant updates across our portfolio. partnerships with our priority chip suppliers, enabling us to ramp up
production of our highest margin products, and and return to profit in the
In the coming years we will launch pure-electric versions of all of our third and fourth quarters.
Range Rover, Defender and Discovery collections. This starts with the

A n n ua l Re p o r t 2022/23 5
During the year we also entered the next phase of our Refocus For all our global activity, this year has also brought moments of great joy
transformation programme, evolving to a simplified business excellence and poignancy for many.
operating model designed to drive sustainable value creation, results and
growth. JLR celebrated with joy the Platinum Jubilee of Her Majesty Queen
Elizabeth II and then mourned her passing. We are sincerely honoured
Following the launch of our clear, measurable, Science Based Targets to enjoy a long-standing connection to the Royal Family and The Queen,
initiative (SBTi)-approved targets to enable us to achieve carbon net zero which is a source of great pride for all of us at JLR.
by 2039 targets to enable us to to achieve carbon net zero by 2039, we
were awarded a “Low Risk” ESG Risk Rating from Sustainalytics with a Together we have achieved much during the past year, in the face of
score of 17.1, the fourth lowest rating out of over 75 companies in the formidable challenges. The coming year is set to be as challenging, but as
Automotive Sub-Industry. This is a significant improvement versus our we look to important milestones in our Reimagine journey, I feel confident
2021 rating. with the support of the committed, passionate and skilled people of JLR,
we will realise them together.
We were also very proud to achieve a maximum five-star Euro NCAP rating
for our peerless new Range Rover and Range Rover Sport, underlining the
incredible engineering in our MLA architecture that underpins them.

Strategic partnerships are a cornerstone of Reimagine. We are partnering

with global experts in their fields such as technology leaders NVIDIA, Tata
Technologies and Tata Consultancy Services (TCS). These partnerships ADRIAN MARDELL
are bringing new technologies to support the transformation and growth INTERIM CHIEF EXECUTIVE OFFICER
Jaguar Land Rover Automotive plc
of our business, and the delivery of a true modern luxury experience for
1st June 2023
our clients.

A n n ua l Re p o r t 2022/23 6
OUR BUSINESS

S T R AT E G I C R E P O RT
O U R P U R P O S E A N D S T R AT E G Y

Th ro ug h o u r Re im a g in e s t r ate g y, we h ave s e t a c le a r v isi o n a n d p at hw ay to b e c o m e t h e p ro u d c re ato r s of m o d e r n lu xu r y.

Live the exceptional with soul is why we do business - our company We are investing £15 billion over the next five years to deliver our product
Purpose, introduced during FY2022/23. It was co-created with over plans, including the rapid electrification of the product portfolio.
1,000 voices from across our business and sets out how we will achieve
our aspirations. The pure-electric Range Rover and Range Rover Sport, are on track to
arrive in 2024. They will be followed by our Electrified Modular Architecture
Our Purpose is guided by our Creators’ Code, a set of five co-created in 2025, while new Jaguar will be on sale in selected markets in 2024, for
behaviours – Customer Love, Unity, Integrity, Growth and Impact. client deliveries in 2025.

These set out how we will behave each day to achieve our shared goals. By 2030, all nameplates will offer pure-electric options that are expected
The Creators’ Code is underpinned by progressive policies, benefits, and to account for 60% of our retail sales.
engagement with our people - to accelerate our collective progress.
We are at the forefront of the rapidly changing automotive industry with
Combined with the positive impacts of sustainability, diversity and a focus on electrification, digital services and data. Leadership in these
inclusion, our Purpose will enable us to better understand and serve our areas is critical to delivering a modern luxury experience to our clients,
clients, fuel innovation and engage and inspire our people. now and in the future.

REIMAGINE Our digital transformation will create new experiences, new levels of
intimacy and connected car services for our client. As a business, we are
Reimagine is the roadmap for the transformation of JLR into a sustainable, creating a digital-first mindset to support our growth, enhance the client
electric-first modern luxury business. Through Reimagine we will deliver experience, and increase the productivity and expertise of our teams.
double-digit EBIT margins by 2026 and be net cash positive by FY2025.
We will achieve our Science Based Targets initiative (SBTi) carbon Through our Open Innovation programme, we will deliver technology
reduction targets in 2030 and carbon net zero goals by 2039, and always and digital services leadership, working with global start-ups and scale-
strive to exceed our clients’ expectations. ups, to bring new thinking and new opportunities. These are strategic
collaborations that allow us to lead, not follow.
As part of our modern luxury vision, we have announced the creation of a
House of Brands organisation, to amplify the unique DNA of each of JLR’s Through global partnerships announced in FY2022/23, we will deliver
celebrated British automotive brands - Range Rover, Defender, Discovery, automated driving systems and AI-powered connected services in our
and Jaguar. This allows each brand to project their individual purpose, vehicles from 2025 with NVIDIA; increase performance and range for our
desirability, and personality. The House of Brands will also provide clarity next generation of electric vehicles, using Silicon Carbide semiconductor
and differentiation for our clients, to create emotional connection. inverter technologies developed with Wolfspeed; and accelerate the
digital transformation of our industrial operations with Tata Technologies.
Two new product additions to the House this year were New Range Rover
Sport and Defender 130, both of which beautifully embody our modern In FY2022/23, we have initiated an approach to strategic foresight for
luxury design philosophy. our business, taking a collaborative approach with external partners, to
better identify growth opportunities and improve business resilience, by
We are also completely reimagining the future of Jaguar, moving understanding and evaluating disruptive risks before they happen.
purposefully to deliver a dramatic, aspirational, and unique pure-electric
modern luxury brand. More details of a new 4-door GT Jaguar will be REFOCUS
released later in 2023, before going on sale in selected markets in 2024,
for client deliveries in 2025. Our Refocus transformation programme is the engine room of long-term
fulfilment of our Reimagine strategy. It is how we are driving change
Our business will also become carbon net zero by 2039. Guided by across our business to improve our operations and allow us to achieve our
our Planet Regenerate, Engage for Good and Responsible Business strategic goal of reimagining our automotive future.
programmes, sustainability is at the heart of everything we do.
Refocus has already created significant results, for our business and
We will deliver new benchmarks in environmental, societal and culture, and delivered over £2.6 billion of value since the beginning
community impact for a luxury business, creating the world’s most of FY2021/22. Through our Charge and Accelerate cost saving and
desirable, electrified luxury vehicles, against a canvas of true sustainability. transformation journey to date, we have created the right foundation of
We have committed to ambitious science-based targets, to reduce our cost control, waste elimination and cross functional collaboration to help
greenhouse emissions by 46 per cent in our own operations and by 54 per us focus on sustainable value creation and business excellence to deliver
cent per vehicle across our entire value chain by 2030. true sustainable growth. This new era and approach is an evolution we
have called Refocus 2.0.
Central to our Reimagine strategy and integral to our drive towards carbon
net zero is the transition to an electric future for all brands – both vehicles With more than 100 Refocus initiatives driving change in the last year,
and the supporting ecosystem, with plug-in electric hybrids acting as a the programme has delivered against key objectives one year earlier than
key stepping stone for JLR and its clients. Our modern luxury philosophy planned.
extends to our ambition for effortless, charging experiences globally.

A n n ua l Re p o r t 2022/23 8
Driving profitability In Responsible Spend, we continued to drive collaboration across the
business. By simplifying end-to-end processes and removing bureaucracy,
In Quality, we have improved the quality that our clients experience £100 million savings have been achieved throughout the period. New
during their vehicle ownership. We are measuring customer satisfaction technology and digital ways of working are delivering improved cost
through net promoter score (NPS): in China, Land Rover ranked second control, and will continue to be our focus in the future.
in the Customer Service Index (CSI) survey and second in the Vehicle
Dependability Survey (VDS). Similarly, in the USA, our JD Power ranking Changing our way of working
in the Initial Quality Survey (IQS), which measures customer perception of
vehicle quality after three months of ownership, improved by two points In Digital, we merged our Digital and IT teams to form a single ‘Digital’
compared to overall industry drop of eighteen points. function, capitalising on the best practices, bringing together a fully
integrated team of over 800 people. Working with our strategic partners,
In Programme Delivery and Performance, we are addressing underlying smart tools and technologies developed by the Digital team have
business constraints that impact on our Agile squads’ ability to deliver underpinned critical operations in FY2022/23. Notable examples include
value. Our focus has been on simplifying governance, decision-making a suite of tools to support the launch of our vehicles built on our Modular
processes, as well as increasing the speed with which impediments are Longitudinal Architecture (MLA), as well as enabling data-driven decision-
resolved to streamline our products’ time to market. making. Our focus remains on modernising our digital infrastructure, as
well as staying safe from cyber-attacks.
In Delivered Cost per Car, we have continued building on successful cost
reduction initiatives across key vehicle programmes. Through technical In Agile Organisation and Culture, our priority has been on unfolding our
and feature optimisation, we have driven material cost reduction changes Purpose and Creators’ Code across the organisation. We launched our
without disrupting programme delivery. The delivery of cost initiatives “Reimagine Leadership” programme which offered numerous learning
approved in FY2022/23 will continue in FY2023/24 to mitigate a interventions such as practical empowerment and team engagement to
reduction in returns on legacy carlines. support our cultural transformation.

In Supply Chain, we have continued to deliver end-to-end efficiencies and To enable delivery of our products on time, to cost and quality, we also
increased operating stability. Throughout FY2022/23, we significantly transitioned six programme delivery portfolios into agile procedures of
improved our semiconductor supply, with intensive efforts on risk working whereby 8,000 people are working in empowered squads and
identification and mitigation. Throughout next year, our focus will be on have adopted core Agile procedures.
improving operating transparency, stability, and resilience through new
technologies with our external partners. Commitment to carbon net zero

In Client and Market Performance, we are transforming our go-to-market In Sustainability, in FY2022/23, we successfully reduced our emissions
models and the way we interact with our discerning clients. We have from our Manufacturing and Operations (scope 1 and 2) by 13.6 kTCO2e,
launched our first direct agency sales model in South Africa and created through delivery of specific projects, helping to meet our Science Based
a seamless on and offline Modern Luxury Client Journey with our Retail Targets initative (SBTi) glidepath targets. We also progressed in our
Partners in Europe, all underpinned from our digital transformation with strategy execution plan for our transition to supply chain decarbonisation
a new integrated platform enabling our clients to complete their new and electrification, which support attainment of our scope 3 target in
vehicle reservation journey online. future years, as described in our strategy approach.

We are exploring new modern luxury physical retail designs, ensuring In addition to our decarbonisation roadmap, we have strengthened our
each of our brand’s unique DNA. We have this new format in our Mayfair- overall sustainability position. This has been achieved through adopting
London Boutique, whilst in China, we have opened retail outlets in five strategic partnerships, enriching our circular economy capabilities and
cities, including Beijing and Shanghai with this design language, truly responsible business practices, and is reflected in external indices and
showcasing immersive and joyful experiences. reporting standards.

These principles also extended to ‘Range Rover House’ which is a fully For further details, please refer to the dedicated sustainability section.
curated experience based in inspiring homes and iconic locations,
exclusively for clients.

A n n ua l Re p o r t 2022/23 9
REFOCUS 2.0

Our Refocus transformation is now evolving to its next level. This next phase will accelerate the energy and power of our organisation and people to
deliver our Reimagine strategy.

BUSINESS
EXCELLENCE
BUSINESS EXCELLENCE

ADDRESSING SYMPTOMS
(WORKING TOGETHER)

COST CONTROL

TIME

Refocus 2.0 is an enterprise-wide approach that will simplify our Clients” to our brands, how we maximise the return on the investments
operating framework and governance, with greater focus on systematic we make in the “Creation of Products & Services”, and how we “Plan,
value creation and business excellence to help grow our business. Our Buy & Make” the Industrial Operations part of our business to build our
new Refocus “Value Creation System” will govern everything we do as products.
a business under the three value streams: how we “Attract & Retain our

These value creation streams connect our business capabilities, providing common purpose and set of priorities. By simplifying our management
end-to-end visibility on how we deliver value. cadence and how we measure enterprise performance, we drive truly
aligned impact for a sustainable future. Working together in functional
Using a single set of aligned Business Outcomes, measured through “Enterprise Chapters” against each outcome, our teams will unite their
our simplified ‘Key Performance Indicators’ as part of our Enterprise skills and capabilities to deliver both sustained continuous improvement
Operating Framework, we are connecting everyone in our business to a and business excellence.

A n n ua l Re p o r t 2022/23 10
OUR BUSINESS MODEL

O u r Re im a g in e s t r ate g y c o n t i n u es to evo lve o u r b u si n ess m o d e l , to e n su re we re d e f i n e J LR a s a p rof i t- le d c o m p a ny, a n d

re a l is e i t s p o te n t i a l to ge n e r ate su s t a i n a b le , lo n g-te r m v a lu e t h ro ug h o p e r at i o n a l exc e l le n c e .

Raw Supply Customer Skills and Investment

INPUTS materials chain insights people

I N N O VAT I O N ,
D I G I TA L A N D
TECHNOLOGY

MOBILITY DESIGN, VEHICLE

AND OTHER PROGRAMMES
NEW SERVICES AND ENGINEERING

CLIENT S T R AT E G I C
SERVICE SOURCING
NETWORK

S U P P LY C H A I N ,
GLOBAL LOGISTICS AND
SALES M A N U FA C T U R I N G
NETWORK O P E R AT I O N S

FINANCIAL AND
S T R AT E G I C
PA R T N E R S H I P S

Modern Sustainable Reduced Stronger Quality Technologic al

OUTPUTS
luxur y prof itable environmental communities produc ts innovation
grow th impac t

A n n ua l Re p o r t 2022/23 11
OUR YEAR IN REVIEW

U n d e r o u r Re im a g in e s t r ate g y, we h ave c o n t i n u e d to b r i n g n ew p ro d u c t s a n d te c h n o log i es to o u r c l i e n t s , i nves te d i n o u r

p e o p le a n d f ac i l i t i es , a n d a n n o u n c e d n ew s t r ate g i c p a r t n e r s h i ps sig n i f i c a n t f o r o u r e le c t r i c f u tu re .

CONTINUING OUR MODERN LUXURY JOURNEY Originally developed to update infotainment systems, SOTA now updates
a wide variety of vehicle systems, from engine, braking and steering
The New Range Rover Sport – Sporting luxury with attitude systems, transmission control for four-wheel-drive and advanced driver-
assistance systems (ADAS), such as Adaptive Cruise Control.
Following the success of New Range Rover, in May 2022 we introduced
the New Range Rover Sport - our most dynamic Range Rover Sport Celebrating milestones
ever, bringing a visceral performance edge to the brand and applying our
modern luxury philosophy to a new vehicle, for our clients. 75 years after the original Land Rover was introduced at the 1948
Amsterdam Motor Show, this landmark anniversary was celebrated with
Range Rover Sport, which first established Range Rover as a brand a new limited-edition Defender model and a new LEGO® Icons Classic
beyond a single vehicle in 2005, has grown to become one of our most Land Rover Defender 90 set.
successful vehicles, spanning 17 years and two generations. With plug-
in electric hybrid power and a host of dynamics technologies, the latest The exclusive Grasmere Green exterior colour and unique detailing was
Range Rover Sport brings dramatic design, connected convenience reflected in a Lifestyle Collection of complementary goods made available
and electrified performance to a new level, setting a new standard for to clients.
performance SUVs.
As for the 32cm-long LEGO® model, the 2,336-piece set is complete
Innovations and technologies that ensure New Range Rover and New with all the accessories for an off-road expedition, allowing builders to
Range Rover Sport lead by example are protected by more than 200 new create an everyday road-ready model.
patents filed up to the end of FY2022/23.
Having won more than 50 global awards, Defender is now on sale in almost
Some of these innovations were recognised by Euro NCAP this year, in 100 countries around the world and continues to grow in popularity.
awarding New Range Rover and Range Rover Sport maximum five-
star safety scores, including ratings of over 80 per cent for Occupant Through FY2022/23, we recovered production volumes and ramped up
Protection and in the Safety Assist category, recognising their suite of to three shift production at our Nitra plant, in Slovakia, supporting the
Advanced Driver Assistance Systems. business to deliver more than 86,000 Defender wholesales.

Expanding our Defender collection Jaguar sports cars also celebrates it’s 75th anniversary in 2023 with a
unique special edition of the F-TYPE that also acknowledged the sports
The financial year 2022/23 also saw us add to our Defender collection, car’s last model year, before Jaguar’s renaissance as a pure-electric
with the introduction of the Defender 130 model. modern luxury brand.

Echoing the name of the original long-wheelbase model, the Defender A pair of exclusively curated special editions were developed to mark the
130 adds another dimension to our all-conquering, all-terrain brand, occasion, available in both coupé and convertible body styles, featuring
providing space and comfort for up to eight adults, across three rows of unique interior and exterior design elements, rich specifications and
full-size seating. unique paint options such as Giola Green metallic.

To create the enhanced interior space, without compromising its Continuous innovation
unparalleled all-terrain capabilities, Defender’s silhouette has been
sensitively extended by 340mm rearwards, while the wheelbase remains At the centre of our Reimagine strategy is the development of unique
unchanged. Elsewhere, it features all the Defender refinements and client experiences. New Range Rover Velar, Jaguar F-PACE and the
technologies that our clients expect. award-winning Jaguar I-PACE have become more distinctive, compelling
and desirable than ever in FY2022/23.
Software over the air
With New Range Rover Velar, we are providing a calm sanctuary to our
This year, we delivered our five millionth individual software-over-the-air clients, promoting comfort and wellbeing. The cabin includes active
(SOTA) update to 500,000 Range Rover, Defender, Discovery and Jaguar. technologies that help to cleanse the air and minimise road noise, to be
both cleaner and quieter, on any journey.
Our latest vehicles are highly digitised and seamlessly synchronise multiple
systems for the driver, to make the driving experience uncomplicated and With an upgraded battery pack on the F-PACE P400e plug-in electric
relaxing. hybrid, we offer an increase of 20% to our clients on their electric-only
range.
New models, such as the New Range Rover, New Range Rover Sport and
Defender, feature more updateable Electronic Control Units per car than Jaguar I-PACE continues to reinforce its status as the benchmark all-
any other production model on sale. This gives unprecedented scope electric performance SUV thanks to an impressive real-world range and
to enhance the vehicle remotely, without costing clients the time of a day-to-day usability. During FY2022/23, it was enhanced with a more
retailer visit. distinctive design, richer specifications, the addition of R-Dynamic model.

A n n ua l Re p o r t 2022/23 12
O U R N E W E R A O F E L E C T R I F I C AT I O N based manufacturer and supplier of customisable, high-end vehicle home
charge points.
Modern luxury of electric propulsion
In October 2022, we announced a new service, Jaguar and Land Rover
Through FY2022/23, we continued to transform our business at pace, Charging powered by Plugsurfing, to simplify the process with one
both in electrifying our current vehicles, and in planning our electric future charging key and one app giving access to a curated network of over
. 300,000 charging points across 27 European countries and 700 charging
The New Range Rover Sport provides a pure-electric capability for almost point providers.
every journey. As one of the fastest-charging plug-in hybrid systems, re-
charging up to 80 per cent takes under an hour. We are also working with other companies - such as Tesla - to make sure
that we have full compatibility with other structures. With the opening of
Every one of our brands – Range Rover, Discovery, Defender, and Jaguar – Tesla Superchargers to non-Tesla vehicles, we have been able to offer our
now offers plug-in and mild hybrid vehicles, together with the all-electric clients in the Netherlands the possibility to use that network.
Jaguar I-PACE with 68% of sales being electrified vehicles in FY2022/23.
A sustainable circular economy
The reimagining of Jaguar into a pure-electric modern luxury brand is
on track. More details of a new 4-door GT Jaguar will be released later In March 2022, we announced a partnership with Pramac, a global leader
in 2023, before going on sale in selected markets in 2024, for client in the energy sector, to develop a portable, zero-emission energy storage
deliveries in 2025. unit powered by second-life electric vehicle batteries.

We are developing a unique architecture, named JEA, to be manufactured Their Off Grid Battery Energy Storage System (ESS) features lithium-ion
in-house at our Solihull manufacturing facility. The new design language cells from Jaguar I-PACE batteries, supplying zero-emission power where
for Jaguars of the future has been clearly defined - they are highly access to the main supply is limited or unavailable.
anticipated and will be a copy of nothing.
It was showcased through the year by the Jaguar TCS Racing Formula E
This year, we also re-confirmed our next generation electrification team, powering their on-grid utilities on race days.
roadmap. Our Electrified Modular Architecture (EMA) will be electric only
whilst the flexible Modular Longitudinal Architecture (MLA) will offer Second-life applications for our vehicle batteries, such as this, will support
flexibility between ICE, hybrid and pure-electric. our transition towards a circular economy business model over time.

The first pure-electric Range Rover will launch in 2024, and over the Embracing a new era in Formula E
following years, all our collections will have pure-electric options.
Jaguar TCS Racing’s Mitch Evans finished second in Season 8 of the ABB
Making charge attractive FIA Formula E Drivers’ Championship, recording four wins and seven
podium positions in Jaguar’s sixth season of competition.
To help ease our clients’ transition to electric vehicle ownership, we are
actively developing both home charging and public charging. The 2023 ABB FIA Formula E championship marks a significant moment
of revolution for Formula E, its Gen3 era. Lighter, more powerful and faster,
For our clients’ home, we are developing modern luxury home charging the new Jaguar I-TYPE 6 is the most advanced and efficient electric
solutions. In the UK, in 2022, we partnered with Andersen EV, a London- Jaguar race car ever designed and engineered.

A n n ua l Re p o r t 2022/23 13
Formula E remains a key priority for Jaguar, allowing our engineers to revolutionise operations for employees and suppliers, delivering advanced
collaborate on new electric vehicle technologies in a high-performance interfaces, increased efficiency, and enhanced collaboration.
environment. Pioneering new cutting-edge technologies, the resulting
knowledge, learning and technological development is directly shaping In parallel, over 100 colleagues from JLR and TCS collectively identified
future pure-electric Jaguar road car technology. more than 30 opportunities across four key domains - Digital, Engineering,
Sustainability and Customer journeys – which are aligned with the overall
Racing in a zero-emission motorsport category also demonstrates our ambition of delivering Reimagine and will transform our brands, vehicles
commitment to have zero tailpipe emissions and to achieve carbon net and services.
zero across our supply chain, products and operations by 2039.
Recruiting and upskilling for a digital future
Partnerships to improve the breed
This financial year also saw us taking key actions to recruit and re-train
One key partnership nurtured by Jaguar in Formula E has been with our people for our digital future.
Wolfspeed, with whom the Jaguar TCS Racing team has developed
Silicon Carbide semiconductor technology since 2017. In September 2022, we announced our Future Skills Programme, a
global upskilling drive to train 29,000 people over the next three years, in
These compound semiconductors can operate at much higher connected and data capabilities, and to support our rapid transformation.
temperatures, provide higher current density, and provide faster switching More than 10,000 JLR and franchised retailer employees in the UK, and
with reduced heat loss, all critical in electric drivetrain efficiency. nearly 19,000 across the rest of the world, will be trained in skills vital to
electrification, digital and autonomous cars.
This year, we extended this technology partnership to our whole business,
through a global strategic agreement with Wolfspeed, to secure supply Shortly after this announcement and following large-scale job losses from
for the same cutting-edge Silicon Carbide semiconductors. technology firms, we announced a further drive to recruit skilled workers
from the digital technology industry by opening a new jobs portal to
This technology will provide our next generation of modern luxury electric explore career opportunities and offering hybrid working patterns. More
vehicles with significantly increased powertrain efficiency and extended than 800 new digital and engineering positions were offered globally,
driving range, while reducing weight and conserving space. across Autonomous Driving, Artificial Intelligence, Electrification, Cloud
Software, Data Science, and Machine Learning.
INVESTING IN TECHNOLOGY LEADERSHIP
We also created three global tech hubs which will be focusing on
Seamlessly integrated technologies autonomous technologies, in Germany, Italy and Spain. They come in
addition to the existing JLR tech hubs in the USA, Hungary, Ireland, UK,
From segment-first digital LED lighting technology to the seamless China and India. The new recruits will bolster the 1,100 engineers who
integration of connectivity powered by Amazon Alexa voice AI, and are working on subjects including driver assistance systems and artificial
advanced noise cancelling and cabin air purification systems, our on- intelligence for self-driving cars.
board vehicle technologies already deliver true modern luxury and calm
sanctuary for our clients. During the last quarter of FY2022/23, we offered a record number of
degree apprenticeships, to deepen our talent pool and develop the next
This year, we added further convenience through over-the-air software generation of modern luxury vehicles.
updates, including an integration of the ‘what3words’ platform for clients
with Pivi Pro in 150 countries and 24 languages. Open Innovation for the future

‘what3words’ has given every 3m x 3m square in the world a unique In April 2022, we announced Open Innovation, a strategy created to
identifier, enabling fast and accurate routing to a destination, even accelerate next-generation technology and sustainability implementation
without an address. through collaborations with start-ups, scale-ups and like-minded
organisations.
Our testing capability in connected technologies was further strengthened
this year by our investment in a brand-new Electromagnetic Compatibility Key to the strategy are partnerships with corporate innovation platforms
(EMC) laboratory, at our Gaydon, UK engineering hub. and investors. We co-founded a first-of-its-kind innovation hub in the UK,
in partnership with Plug and Play, while two separate partnerships with
The New Range Rover Sport was the first vehicle to undergo a bespoke Cubo Itau and Firjan have established a connection with the vibrant Latin
testing programme at this facility, critical to ensuring future quality, legal, American start-up ecosystem.
and client satisfaction.
Areas of focus for Open Innovation include sustainability, talent, intelligent
Growing our ecosystem multi-enterprise, connectivity, electrification, digital services and the
metaverse.
Throughout FY2022/23, we have seen several initiatives, projects
and partnerships emerging with our sister companies including Tata Launched in June, Plug and Play’s Mobility Innovation programme is
Technologies, and Tata Consultancy Services (TCS). designed to bring innovation and sustainability improvements to the
mobility sector through new technology, processes and tools. Partners
The collaboration with Tata Technologies will enable us to accelerate the include: the University of Warwick, Advanced Propulsion Centre, Zenzic,
digital transformation of our industrial operations. The award-winning Novelis and Bentley.
cloud-based Enterprise Resource Planning software solutions will

A n n ua l Re p o r t 2022/23 14
O P E R AT I N G E N V I R O N M E N T

E x te r n a l c h a l le n ges h ave p e r sis te d t h ro ug h o u t F Y2022/23 w i t h v a r y i n g leve l s of i m p ac t o n o u r b u si n ess . We h ave res p o n d e d

to t h es e c h a l le n ges a n d i m p rove d o u r p e r f o r m a n c e ye a r- o n -ye a r. We h ave c o n f i r m e d o u r c o m m i t m e n t to o u r Re im a g in e
s t r ate g y a n d p l a n , to ac c e le r ate o u r t r a n si t i o n to b e c o m i n g p ro u d c re ato r s of t h e m os t d esi r a b le , m o d e r n lu xu r y b r a n d s ,
f o r t h e m os t d is c e r n i n g of c l i e n t s .

CHALLENGES desirable, modern luxury brands, for the most discerning of clients. Since
then, we have made great progress. In April 2023, interim Chief Executive
Semiconductors and general supply constraints Adrian Mardell reaffirmed the business’s commitment to this strategy,
The ongoing supply chain challenges, particularly around semiconductors, repositioning the company as an electric-first, modern luxury carmaker
continued to limit our ability to build cars in line with client demand during by 2030.
FY2022/23. We saw significant volatility in raw material commodity
markets during the year leading to abnormal pricing levels and elements House of Brands
of scarcity in some markets. Supply constraints were caused by various As a next step within the Reimagine strategy, we will move to a House of
external factors, namely Covid-19 recovery, the conflict in Russia-Ukraine Brands approach, to amplify the unique character of each of our brands
and energy inflation. - Range Rover, Defender, Discovery and Jaguar - and accelerate the
delivery of our vision.
In response to these challenges, we focused production on higher margin
products and improved our organisational capabilities and processes Investing in next generation electric models
to more proactively manage our supply chain. We put in place long- As part of our electrification roadmap, we will accept client orders for
term supply agreements directly with a number of semiconductor the modern luxury pure-electric Range Rover from this autumn. The first
manufacturers to protect both current and future product programmes. of our next generation medium-size modern luxury SUVs will be a pure-
electric model from the Range Rover family, launching in 2025 and built
As a result of our actions, our wholesale volumes for the year were at Halewood.
321,362 up 9.2 per cent compared to the prior year.
We also announced that the first of three reimagined modern luxury
Whilst general supply chain challenges are likely to continue in the coming Jaguars will be a 4-door GT built in Solihull in the West Midlands. With
year, we anticipate that the actions we have taken this year will minimise power output more than any previous Jaguar, an expected 400+ mile
the impacts on our volumes. range and with prices starting from £100,000, the new Jaguar will be
built on its own unique architecture, named JEA.
Global inflation
Inflationary pressures have increased during the past year with energy Strengthening the shift to electrification
prices in Europe, where we produce the majority of our cars, rising as a Our Halewood plant will become JLR’s first all-electric production facility,
result of the Russian invasion of the Ukraine. Inflation accounted for and our next-generation electrified modular architecture (EMA) will now
around £850 million of increased costs during the past year with cost be pure electric only.
increases coming from higher commodity prices, energy costs, labour
rates and semiconductor prices. This underlines our commitment to Reimagine and signals the increasing
ambition of our shift to electrification. This will strengthen the transition
We have taken steps to offset these impacts under our Refocus to our modern luxury electric future, moving us towards our financial
programme which has delivered over £1.1 billion of value to the business goals, developing new skills, and reaffirming our pledge to be net zero
through actions taken to optimise sales, lower costs and to prioritise carbon by 2039.
investment spending.
While EMA will now be electric only, our flexible MLA architecture, which
Geopolitics underpins Range Rover and Range Rover Sport, will continue to offer
Geopolitical challenges including increasing geopolitical tensions and internal combustion, hybrid and battery electric options. This gives us
regulatory and legislative changes such as the US Inflation Reduction Act flexibility to adapt our vehicle line-up to meet the needs of different
have a global reach and can impact supply chains. While we have not markets around the world as they transition to carbon net zero.
observed any direct impacts on our business in the last year as a result of
specific events, we proactively scenario plan against a range of outcomes Collaborations and Partnerships
to ensure we remain well balanced as a business. Through the course of the year we have entered into partnership
agreements with strategic semiconductor manufacturers to secure long
term supply to protect both current and future product programmes.
OPPORTUNITIES
We are collaborating with leaders in their field, such as NVIDIA who are
Commitment to Reimagine strategy experts in AI and Tata technologies who are helping us to streamline
In February 2021, we launched our Reimagine strategy – our roadmap technology.
for the future, to realise our vision to become proud creators of the most

A n n ua l Re p o r t 2022/23 15
G L O B A L R E TA I L S A L E S B Y R E G I O N

Our retail sales1 were 354,662 vehicles in FY2022/23, down 21,719 compared to the prior year. As the year progressed, the supply shortages
vehicles (5.8 per cent) year-on-year. This decline in sales reflected the gradually eased, with quarter four retails of 102,889 compared to 78,825
continuation of the semiconductor supply shortage which, despite a in quarter one.
gradual improvement over the course of the year, impacted production.
Total retail sales from our China Joint Venture were 50,904 vehicles for
Full year retail sales were lower year-on-year in China (down 5.0 per FY2022/23. Sales were down 5.8 per cent compared to the prior year
cent), North America (down 15.1 per cent), Europe (down 0.5 per cent) due to the aforementioned semiconductor supply shortages and also, to
and overseas (down 6.3 per cent). The UK was higher (up 0.9 per cent) a lesser extent, as a result of the local Covid lockdowns.

UK F Y2022/23:64,011

0.9% INCREASE F Y2021 /22:63,438

NORTH AMERICA F Y 2 0 2 2 / 2 3 :7 7, 5 2 6

(15.1)% DECREASE F Y 2021 / 22: 91, 3 05

CHINA F Y2022/23:90,998

(5.0)% DECREASE F Y2021 /22:95,785

EUROPE F Y 2022 / 2 3 :71 ,70 6

(0. 5)% DECREASE F Y 2 021 / 2 2 :7 2 , 0 6 8

OVERSEAS F Y2022/23:50,421

(6. 3)% DECREASE F Y2021 /22:53,785

J L R T O TA L F Y2022/23:354,662
F Y 2021 / 22: 376 , 3 81
(5.8)% DECREASE

1 Please see note 3 of the financial statements on page 89 for Alternative per formance measures. Jaguar Land Rover retail sales represent
vehicle sales made by retailers to end customers and include the retail sale of vehicles produced by CJLR.

A n n ua l Re p o r t 2022/23 16
G L O B A L R E T A I L S A L E S B Y B R A N D A N D M O D E L F A M I LY

The Range Rover nameplates retailed 168,949 vehicles, down 3.4 per cent Discovery nameplates retailed 48,311 vehicles, down 22.5 per cent year-
year-on-year due to the ramp up of production of the New Range Rover on-year due to the prioritisation actions for higher margin models against
and New Range Rover Sport during the year. Range Rover nameplates a backdrop of supply issues throughout the year. Discovery nameplates
accounted for 47.6 per cent of total retail sales, up from 46.5 per cent in made up 13.6 per cent of total retails during the year.
FY2021/22.
The Jaguar family retailed 62,521 vehicles, down 19.2 per cent year-on-
Retail sales for the Defender were 74,881, up 21.3 per cent compared year. The decline was caused by the same prioritisation actions which
to FY2021/22 and equated to 21.1 per cent of total retails. Strong client impacted Discovery. Jaguar accounted for 17.6 per cent of total retails
demand combined with the easing of semiconductor supply constraints in FY2022/23.
meant that our plant in Slovakia which produces the Defender moved to
a three-shift pattern during the second half of the year.

F Y2022/23:16 8 , 9 4 9 F Y 2 0 2 2 / 2 3 :74 , 8 8 1
F Y 2 0 2 1 / 2 2 : 174 , 9 4 3 F Y 2 021 / 2 2 : 61 ,717

(3.4)% DECREASE
21 . 3% INCREASE

F Y2022/23:4 8 , 311 F Y2022/23:62 , 521

F Y2021 /22:62, 34 0 F Y 2 0 2 1 / 2 2 :7 7, 3 8 1

(22. 5)% DECREASE

(19. 2)% DECREASE

A n n ua l Re p o r t 2022/23 17
G L O B A L R E TA I L S A L E S B Y P O W E R T R A I N

During FY2022/23, we continued to have electrification options across FY2022/23, electrified vehicles totalled 67 per cent of our retail sales (up
our 13 nameplates, with PHEVs available on eight models and MHEVs from 66 per cent in FY2021/22) including 2 per cent for the all-electric
available on 11 models, as well as the all-electric Jaguar I-PACE. In Jaguar I-PACE, 10 per cent PHEV and 55 per cent MHEV.

34%

49% 32%

55% 55%

43%

8% 10%
4%
4% 3% 2%

FY21 FY22 FY23

BEV PHEV MHEV ICE

A n n ua l Re p o r t 2022/23 18
C H I E F F I N A N C I A L O F F I C E R ’ S S TAT E M E N T

RICHARD MOLYNEUX
ACTING CHIEF
FINANCIAL OFFICER

A large part of the financial year ending 31 March 2023 continued to be was a loss of £64 million but £348m better than the prior financial year.
dominated by the ongoing industry semiconductor shortage. However, Loss after tax was £60 million, up £762 million year on year.
we saw a marked improvement in the second half of the year as chip
supply started to improve. The Refocus programme continues to generate value through revenue,
cost optimisation actions and investment savings, with £1.1 billion
Second half wholesale volumes (excluding sales from our China joint of benefit during FY2022/23. This provided an offset to the inflation
venture) volumes were 174,240, up 18 per cent on the first half as the headwinds felt throughout the year.
direct engagement to strengthen relationships with semiconductor
suppliers significantly improved both semiconductor supply visibility and Our commitment to our Reimagine strategy and specifically to
issue resolution. With our low annual break-even point of circa 300,000 electrification was reflected in the £2.4 billion of investment spend during
units, the pick-up in volume resulted in improved second half results with the year. Free cash flow1 after investment spending was £521 million for
£13 billion of revenue, £0.6 billion of profit before tax and exceptional the full year, reflecting working capital outflow of £17 million.
items, 5.3 per cent EBIT margin and over £1.3 billion of free cash flow.
The positive free cash flow reduced net debt at year end to £3.0 billion
Turning to the full year, wholesales were 321,362 vehicles, up 9.2 per reflecting total cash and cash equivalents, deposits and investments of
cent compared to the previous year, with sales in all regions up year-on- £3.8 billion1 and £6.8 billion of gross debt (after repayment of £1.2 billion
year. Retail sales were 354,662, down 5.8 per cent compared to the prior out of cash in the year). Our £1.5 billion undrawn revolving credit facility
year, when higher starting inventories had allowed retail sales to exceed “RCF” was extended to April 2026 and available liquidity, including the
wholesales. Of those retail sales, 67 per cent were electrified, compared RCF, was £5.3 billion at March 2023.
to 66 per cent in FY2021/22.
Looking ahead, the macroeconomic and geopolitical environments
We continue to see strong demand to support further sales growth as remain challenging and supply chains remain fragile. However, we
evidenced by our order book of circa 200,000 units at 31 March 2023 expect volumes to further improve in FY2023/24 with semiconductor
(compared to circa 168,000 at the end of FY2021/22). Orders for Range supply continuing to improve. We expect to be able to build on the strong
Rover, Range Rover Sport and Defender account for over 76 per cent of business performance seen in the second half of this year supported by
the total order book. our great products, strong brands and commitment to the Reimagine
strategy.
Revenues for the year were £22.8 billion, up 24.5 per cent year-on-year
reflecting the higher wholesales and favourable product mix as Range
Rover and Range Rover Sport production ramped up and the Nitra
factory (which produces the Defender) moved to three shifts.

Profit margins improved in the year with an Adjusted EBITDA margin1 of

11.3 per cent (1.0 percentage points higher year-on-year) and adjusted
R I C H A R D M O LY N E U X
EBIT margin1 of 2.4 per cent (up 2.8 percentage points year-on-year), ACTING CHIEF FINANCIAL OFFICER
driven by higher wholesales, higher average pricing and favourable mix. Jaguar Land Rover Automotive plc
Profit before tax and exceptional items (of £161 million) in FY2022/23 1st June 2023

1 Please see note 3 of the financial statements on page 89 for alternative per formance measures.

A n n ua l Re p o r t 2022/23 19
OUR FINANCIAL PERFORMANCE

C O N S O L I D AT E D I N C O M E S TAT E M E N T

Our revenue and profitability were higher in FY2022/23 compared to the prior year largely due to the improving production volumes caused by the
easing of the global supply chain semiconductor shortages. As the year progressed, quarterly improvements could be seen in revenue, profitability
and free cash flow, primarily as a result of higher wholesale volumes, favourable mix and pricing with higher inflation largely offset by pricing and cost
efficiency delivered by the Refocus programme.

REVENUE

Revenue was £22.8 billion in FY2022/23, up 24.5 per £22.8bn

cent from £18.3 billion in the prior year. Wholesales1
F Y2022/23: £22.8bn
(excluding the China joint venture) were higher across F Y2021 /22: £18 . 3b n
all key markets, up 9.2 per cent year-on-year to F Y2020/21:£19.7b n
321,362 units, and mix was favourable with Range
Rover and Defender nameplates accounting for over
76 per cent of all wholesales in the year (up from 70
per cent in FY2021/22).

ADJUSTED EBITDA1

Adjusted EBITDA was £2.6 billion1 (11.3 per cent £2.6bn (11. 3% m a rg i n)
margin) in FY2022/23, £675 million higher than the
F Y2022/23: £2.6b n (11. 3% ma rg in)
Adjusted EBITDA of £1.9 billion (10.3 per cent margin) in F Y 2021 / 22: £1.9 b n (10. 3% m a r g i n)
the previous fiscal year. Higher wholesales, favourable F Y2020/21:£2.5b n (12. 8% m a rg i n)
sales mix, lower incentive spending and improved
pricing offset cost increases in manufacturing and
selling.

ADJUSTED EBIT1

£544m ( 2.4% m a rg i n)
Adjusted EBIT was £544 million1 with a margin of (2.4
per cent) in FY2022/23, an increase compared to the F Y2022/23: £544m (2.4% ma rg in)
Adjusted EBIT of £(66) million1 (0.4 per cent margin) in F Y2021 /22: £(66 )m (0.4% m a rg i n)
the prior year. This reflects the higher Adjusted EBITDA. F Y 2020/ 21 : £ 514 m ( 2 . 6% m a r g i n)

L O S S B E F O R E TA X A N D E X C E P T I O N A L
ITEMS

Loss before tax excluding exceptional items was £64 £(64)m

million1 in FY2022/23, lower than the prior year (loss
F Y2022/23: £(64)m
before tax and exceptional items of £412 million1). This
F Y2021 /22: £(0.4)b n
reflects the improved EBIT, offset by adverse exchange F Y2020/21:£0.7b n
and commodities valuations and higher net finance
expense as a result of the increase in borrowing costs.

L O S S A F T E R TA X

The loss after tax was £60 million in FY2022/23, £(60)m

compared to the loss of £822 million in the prior year. A
F Y2022/23: £(60)m
tax charge of £157 million was recorded in FY2022/23,
F Y2021 /22: £(0. 8)b n
compared to a £367 million tax charge in FY2021/22. F Y2020/21:£(1.1)b n

The loss after tax includes £161 million non-recurring

exceptional gains, £155 million of which relates to
pensions. The prior year loss after tax includes non-
recurring exceptional charges of £43 million.

1 Please see note 3 of the financial statements on page 89 for alternative per formance measures.

A n n ua l Re p o r t 2022/23 20
J A G U A R L A N D R O V E R A U T O M O T I V E P L C C A P I TA L S T R U C T U R E

At 31 March 2023, we had £5.3 billion1 of total liquidity, including cash and cash equivalents, financial deposits of £3.8 billion1 and an undrawn committed
revolving credit facility (RCF) of £1.5 billion. The RCF was renewed in December 2022. Our total debt outstanding at 31 March 2023 was £(6.8) billion2,
giving a net debt position of £3.0 billion.

(£ million) D E B T M AT U R I T Y P R O F I L E
Total liquidity £5,312 Gross Debt £6,788

815

1,890
1,520
undrawn RCF

1,520
3,792 undrawn RCF
4,083
Total cash 816
766 120
1,010 775 959
188 562 376 401

TOTAL CY23 CY24 CY25 CY26 CY27 CY28 CY29 TOTAL

LIQUIDITY DEBT

Cash and financial deposits Bonds Banks loans Leases (IFRS16) and other debt

Note: CY refers to calendar year in the debt maturity profile above.

LIQUIDIT Y AND NET DEBT BORROWINGS AND INDEBTEDNESS

Our total cash and cash equivalents, deposits and investments at 31 At 31 March 2023, we had £6.8 billion of debt outstanding, comprising:
March 2023 were £3.8 billion1 (16.6 per cent of revenue), compared
to £4.4 billion1 at 31 March 2022 (24.0 per cent of revenue). The • £4.1 billion of unsecured bonds
balance at 31 March 2023 comprised cash and cash equivalents of
£3.7 billion, of which £488 million was held in overseas subsidiaries, • £1.9 billion of unsecured loans
and deposits and other investments of £0.1 billion. Including our £1.5
billion revolving credit facility (fully undrawn and committed until • £710 million of leases accounted as debt under IFRS 16
April 2026), total liquidity was £5.3 billion1 at 31 March 2023 versus
£6.4 billion1 at the end of the prior year. The lower cash and liquidity • £105 million of other debt.
is more than explained by £1.2 billion equivalent of debt maturities
repaid out of cash in the year. At 31 March 2023, gross debt was Of the £6.8 billion of debt, £0.6 billion is denominated in Pounds
£6.8 billion and net debt (debt net of total cash and cash equivalents, Sterling, £2.2 billion in Euros, £2.5 billion in US Dollars and £0.6 billion in
deposits and investments) was £3.0 billion at 31 March 2023, £0.2b Chinese Renminbi with the remaining £0.1 billion included as leases in
lower than the net debt position of £3.2 billion at the end of the prior other currencies. The maturity profile of debt is well balanced, with 24
year. per cent maturing within the next financial year (including the CNY 5
billion loan renewed in January 2023 for 3 years but subject to annual
review) , 62 per cent between one and five years and 14 per cent with
a maturity date beyond five years. During FY2022/23, we repaid out of
4,782 4,398 cash a $200m syndicated loan installment in October 2022, $500m
3,782
bond in February 2023, £400 million bond in February 2023, and £250
million of the loans guaranteed by UKEF which amortise throughout
the year. In December 2022 we renewed the Revolving Credit Facility
FY21 for £1.5 billion, extending the facility until April 2026. There were no
FY23
(1,915) FY22 new debt issues during the year.
(3,007)
(3,199)

(6,697) (6,789)
(7,597) 1 Please see note 3 of the financial statements on page 89 for
alternative per formance measures.
2 Please see note 27 on page 116 for fur ther disclosure on our
Total cash Total debt Net cash/(debt) loans and borrowings.

A n n ua l Re p o r t 2022/23 21
C O N S O L I D AT E D C A S H F L O W

Free cash flow was £0.5 billion positive in FY2022/23, after total investment spending of £2.4 billion1, a significant increase of £1.8 billion compared to
the £(1.2) billion negative free cash flow in the prior year.

3,194 (17) (239)

(2,353)

(£ million)

521

(64) (606)
(1,127)

PBT EXCL. DEPRECIATION, WORKING TAX TOTAL FREE CHANGES CHANGE IN

EXCEPTIONAL AMORTISATION CAPITAL PAID INVESTMENT1 CASH FLOW1 IN DEBT AND CASH AND
ITEMS FY231 AND OTHER AND OTHER FINANCIAL
ACCRUALS DEPOSITS

FREE CASH FLOW £0.5bn

F Y2022/23: £0.5bn
Free cash flow was £0.5 billion positive in FY2022/23 after the £2.4 billion
F Y2021 /22: £(1.2)b n
of total investment spending, £17 million of working capital outflows, F Y2020/21:£185m
£239 million paid in taxes and £496 million of finance expenses and fees.

T O TA L P R O D U C T A N D O T H E R I N V E S T M E N T
£2.4bn
Investment spending in FY2022/23 was £2.4 billion (10.3% of revenue),
compared with the £2.0 billion (11.1% of revenue) in the prior fiscal year. Of F Y2022/23: £2.4bn
F Y2021 /22: £2b n
the £2.4 billion investment spending, £966 million was expensed through
F Y2020/21:£2. 3b n
the income statement and the remaining £1.4 billion was capitalised. Total
engineering and product spending accounted for £1.7 billion (72.0 per
cent) of investment spending, while tangible and other intangible assets
accounted for the remaining £0.7 billion (28.0 per cent).

W O R K I N G C A P I TA L
£ ( 17 ) m
Working capital outflows (including non-cash accruals) were £(17) million
during the year, reflecting a £(490) million increase in inventory, £(270) F Y 2 0 2 2 / 2 3 : £ ( 17 ) m
F Y2021 /22: £1. 3b n
million increase in receivables, offset by £763 million increase in payables.
F Y 2020/ 21 : £( 24 ) m

C H A N G E I N T O TA L C A S H A N D C A S H E Q U I VA L E N T S ,
DEPOSITS AND INVESTMENTS

Cash and cash equivalents, deposits and investments totalled £3.8 billion1
at 31 March 2023, £606 million lower than the £4.4 billion1 at the end
of the previous year. The decrease is explained by the repayment of £1.2 £3.8bn
billion (GBP equivalent value) of maturing debt during the year comprising
of $200m syndicated loan in October 2022, $500m bond in February F Y2022/23: £3.8bn
F Y 2021 / 22: £4 .4 b n
2023, £400 million bond in February 2023, and £250 million of the loans
F Y 2020/ 21:£4 . 8 b n
guaranteed by UKEF which amortise throughout the year. In January 2023
we renewed the CNY 5 billion loan. JLR did not issue any new debt during
the year.

1 Please see note 3 of the financial statements on page 89 for alternative per formance measures.

A n n ua l Re p o r t 2022/23 22
S U S TA I N A B I L I T Y

S T R AT E G I C R E P O RT
I N T R O D U C T I O N T O S U S TA I N A B I L I T Y

Su s t a i n a b i l i t y is at t h e h e a r t of o u r Pu r p os e , e n a b le d t h ro ug h o u r Re im a g in e s t r ate g y a n d o u r Cre ato r s’ C o d e .

We are going through a transformation to enable us to deliver sustainability strategy is underpinned by our Environmental and Social
sustainability-rich, modern luxury vehicles. Policy which includes a core set of principles as well as commitments we
have made around society, environment, clients, products and suppliers.
This will deliver value to our clients and our shareholders, growth and
value creation for our business, and will help create positive impact for Sustainability is a collective effort from our employees and stakeholders
the planet and for its people. across our value chain, enabled by our Creators’ Code.

Sustainability is integral to how we operate as a business and to our long- Our sustainability strategy encompasses three focus areas: Planet
term success. Our strategy is guided by the Tata Group’s Project Aalingana Regenerate, Engage for Good, and Responsible Business.
which sets a clear framework for driving momentum on sustainability. Our

P L A N E T R E G E N E R AT E ENGAGE FOR GOOD RESPONSIBLE BUSINESS

Transforming our business Acting as a global citizen for Doing business responsibly and
across the full value chain sustainable development in the with integrity
communities and environments
Carbon net zero by 2039 in which we operate Proactive ESG risk
management
Circular economy Reduced inequalities
Transparent reporting
Biodiversity Education, livelihoods and
skills Clear standards and policies

Supporting the vulnerable

Climate change, circularity and

biodiversity

A n n ua l Re p o r t 2022/23 24
P L A N E T R E G E N E R AT E ENGAGE FOR GOOD

Planet Regenerate is driving our company transformation with the aim to Engage for Good focuses on acting as a global corporate citizen to take
become carbon net zero, by 2039. care of the communities and environments in which we operate and
make a positive, lasting impact for the world. This includes our advocacy
We aim to achieve our emissions targets by decarbonising our partnerships, projects and employee volunteering.
manufacturing and operations, our supply chain, and directly from
our vehicles in use. In March 2022, we committed to ambitious CO2e We use our unique assets - our vehicles, our technologies, and our people
reduction targets by 2030, an intermediate milestone on our carbon net - for good. We encourage and enable our employees to contribute to local
zero journey. community development through volunteering and we supply vehicles
and share technology to support conservation and humanitarian projects
We aim to reduce emissions across our own operations by 46 per cent across the globe.
(our scope 1 and 2 emissions) and by 54 per cent per vehicle across our
value chain (our material scope 3 emissions). We are focusing on four impact areas: Reducing Inequalities; Education,
Livelihoods and Skills; Supporting the Vulnerable; and Climate Change,
Electrification is central to our goals. All our vehicles will be available Circularity and Biodiversity. We will leverage enablers such as partnerships,
in pure-electric form by the end of the decade, starting with the pure- employee skills and expertise to create sustainability and business value.
electric Range Rover in 2024, and the renaissance of Jaguar as pure-
electric modern luxury brand from 2025. RESPONSIBLE BUSINESS

To enable decarbonisation of our entire value chain, we are mobilising This area includes key initiatives to protect our brand reputation, by
our suppliers to move in the same direction. We want to lead by example minimising the risks embedded in our business, beyond legal compliance.
within the automotive industry, delivering a positive impact to the planet. Our core values and business principles for Health and Safety, Diversity
To enable this, we also want to adopt circular economy principles in and Inclusion, Human Capital Development, Data Privacy and Information
design, materials, new services and end-of-life of our vehicles. Security, Responsible Supply Chain, Compliance and Ethics and
Transparency of Reporting represent how we will drive real and positive
Planet Regenerate also focuses on biodiversity loss and ecosystem change.
collapse, one of the largest global risks in the next decade. In line with
Tata Group’s Project Aalingana strategy and approach, we are creating
a nature and biodiversity strategy for JLR, and assessing our impact and
dependences on nature.

A n n ua l Re p o r t 2022/23 25
S U S TA I N A B I L I T Y G O V E R N A N C E

In order to run our business in an effective and responsible way The Tata Group Sustainability Council (TGSC) and Sustainability
and to achieve our targets and goals, it is crucial we have the Working Council – India (SWCI)
right sustainability governance structures in place.
Sustainability at a Tata Group level is managed by the Tata
Sustainability lies at the heart of our Reimagine strategy and Sustainability Group (TSG). JLR Strategy & Sustainability
forms one of the enterprise chapters of our Refocus 2.0 value Executive Director François Dossa sits on the TGSC together with
creation programme. To deliver our sustainability strategy, executive members from other Tata companies.
outlined in the previous section, we are building appropriate
mechanisms in the business. Alongside the Sustainability Council is the Sustainability
Working Council - India. JLR is represented by Rossella Cardone,
Sustainability at JLR involves all of our employees. Many teams Sustainability Director and Head of the Sustainability Office. This
throughout the business are involved in setting and delivering working council is primarily for sharing performance and best
our sustainability objectives, coordinated by our Sustainability practice learnings between the different Tata companies.
Office. The governance mechanisms outlined below are used to
deliver our ambitions. Risk, Compliance and Health and Safety Committees

The JLRL Board and the Company’s Board of Directors Sustainability is incorporated into our Enterprise Risk Management
(ERM) process and reported into our Risk Committee and
Board oversight on sustainability matters is delivered through the Compliance Committee - a subset of our Audit committee.
Refocus 2.0 governance process, with quarterly chapter reviews,
supplemented by regular meetings outside of the Refocus 2.0 We have identified a set of core ESG and sustainability risks which
process to provide guidance to areas of our strategy as they are managed quarterly through the Refocus 2.0 governance
develop. process.

Once approved by our JLRL Board our strategic sustainability For more insight to our committees see page 55.
goals and objectives then receive oversight from the Company’s
Board of Directors.

For more insight into our board structure see pages 53-54.

A n n ua l Re p o r t 2022/23 26
I N T R O D U C T I O N T O P L A N E T R E G E N E R AT E

Th ro ug h Pl a n e t Re ge n e r ate we w i l l d r i ve o u r c o m p a ny t r a n s f o r m at i o n tow a rd s c a r b o n n e t ze ro by 2039. We a i m to

ac h i eve o u r e m issi o n s t a rge t s by d e c a r b o n isi n g o u r m a n u f ac tu r i n g , o u r o p e r at i o n s , o u r su p p ly c h a i n a n d ve h i c les i n u s e .

CARBON NET ZERO a decade, focusing action on the life cycle stages with the largest burden.

In February 2021, as part of our Reimagine strategy, we committed to a This approach showed that:
goal of carbon net zero across our supply chain, products and operations,
by 2039. • Nearly 62 per cent were tailpipe emissions (‘Tank to Wheel emissions’)
generated over the lifetime of the vehicles retailed that year.
To provide a pathway towards this long-term commitment, we published • Another 13 per cent of emissions were due to the production of fuel
science-based targets in March 2022, for ambitious CO2e reduction (‘Well to Tank emission’) over that lifetime including petrol, diesel and
by 2030, of 46 per cent across our own operations (our scope 1 and 2 electricity for our electrified vehicles.
emissions), 60 per cent, per vehicle km, across the use of our vehicles and • Over 19 per cent of emissions were due to our supply chain through
54 per cent, per vehicle, across our value chain (inclusive of our supply the production of materials and components.
chain and use of our vehicles). • Less than 6 per cent of emissions were due to other scope 3 categories
including logistics, business travel and commuting, our retail network
These science-based targets were set based on our FY2019/20 baseline and end-of-life treatment.
using a life cycle approach that has been utilised by the Company for over

25
F Y 2 0 1 9 / 2 0 B a s e l i n e E m i s s i o n s ( M t C O 2e )

61.7%

20

15

10
19.1%
12.8%
5
5.8%
0.6%
0

Scope 1 & 2 Scope 3 - Scope 3 - Catergory Scope 3 - Catergory 11 Scope 3

emissions Catergory 1 - 11 Use of Sold Use of Sold Products - Other
Purchased Goods P r o d u c t s ( Ta n k t o ( W h e e l t o Ta n k categories
& Services Wheel Emissions) Emissions)

Our science-based targets baseline assessments showed that our for scope 1, 2 and 3 emissions has also been linked to the enterprise
total annual emissions across scope 1, 2 and 3 were over 35MtCO2e strategic bonus FY2022/23 plan.
for FY2019/20. This scale of CO2e emissions is comparable with many
countries annually reported emissions and shows the scale of influence Scope 1 and 2 emissions
that our company can have in mitigating the effects of climate change. We will drive energy consumption reduction across our sites and
increase the use of onsite and offsite renewable electricity. This includes
Over 94 per cent of these emissions are now covered by our science- degasification; with the use of gas currently 74 per cent of our market-
based targets, significantly exceeding the minimum threshold set by the based scope 1 and 2 emissions.
Science Based Targets initiative (SBTi) of 67 per cent. The calculation
and reporting of these targeted emissions is in alignment with our SBTi Scope 3 Use of Sold Products
Reporting Methodology Statement (available at our corporate website). By 2030, in addition to 100 per cent of Jaguar sales, we anticipate that
By including the emissions generated by our supply chain within this at least 60 per cent of Range Rover, Defender and Discovery models sold
commitment, we also ensure that we avoid any shift in burden from will not have tailpipe emissions.
product use to our supply chain in future as we electrify our vehicles.
This expansion in vehicles without tailpipe emissions, combined with
Our SBTi commitment and carbon net zero target are also aligned to Tata reductions in the CO2e intensity of grid electricity used in our products
Group’s Project Aalingana which reflects a number of Group-wide targets provides a pathway to a 60 per cent reduction in ‘use of sold products’
in relation to carbon net zero. emissions, by 2030.

O U R S T R AT E G Y T O D E L I V E R Scope 3 Purchased Goods and Services

We have established targets for future vehicle programmes, primarily
We have built a robust strategy to deliver against our targets which has focused on reducing the impact of key materials within our supply chain,
been integrated into our Refocus 2.0 programme. Delivery against targets such as steel, aluminium and battery cells.

A n n ua l Re p o r t 2022/23 27
P E R F O R M A N C E A G A I N S T TA R G E T S The optimisation of operations at Castle Bromwich included the
consolidation of air handling units, saving 534 tCO2e whilst maintaining
Our absolute scope 1 and 2 emissions for FY2022/23 were 152ktCO2 e. comfort levels.
This was a 24.6 per cent reduction compared to the SBTi baseline and
20.0 per cent ahead of our target for FY2022/23. Technology and efficiency improvements in the electric heating systems
at our Engine Manufacturing Centre in Wolverhampton have led to the
This result was due to a reduction in energy consumption through planned replacement of two large gas boilers with electric equivalents saving 4
projects combined with a significant reduction in expected production tCO2e.
volume, due to globally restricted semiconductor supply. As this supply
eases and our production increases, this value is likely to increase in Scope 3 Use of Sold Products
FY2023/24 whilst still within target for our SBTi commitment.
Vehicle efficiency improvements reduced our use of sold products’ impact
Our scope 3 ‘use of sold products’ emissions for FY2022/23 were by 3.4 per cent (1.9tCO2e/vehicle) during FY2022/23.
255gCO2e per vehicle km. This was a reduction of 2.0 per cent compared
to FY2021/22 (261gCO2e/vehicle km), and a marginal reduction of 0.3 The biggest contribution was the introduction of the new Range Rover
per cent compared to the SBTi baseline (256gCO2e/vehicle km). and Range Rover Sport, which improved CO2e by 14.7 per cent (9.2tCO2e/
vehicle) over previous models. This was due to the replacement of
Our scope 3 ‘combined use of sold products and purchased goods and the AJ133 V8 engine with the new NC10 V8 engine and efficiency
services’ emissions for FY2022/23 were 64.0tCO2e/vehicle. This was a improvements with the new MLA platform.
1.6 per cent reduction compared to FY2021/22 (65.1tCO2e/vehicle), and
a reduction of 0.5 per cent compared to the SBTi baseline (64.3tCO2e/ Scope 3 Purchased Goods and Services
vehicle).
In September 2022, we invited our global supplier network to commit to
The last two years have been substantially affected by the Covid-19 sustainability targets approved by the SBTi. All tier 1 suppliers were asked
pandemic and the supply chain shortages that followed. This has resulted to set a decarbonisation pathway, report transparently and demonstrate
in a production and retail mix of vehicles that has only driven a marginal progress towards their targets, disclosing their carbon reporting and
decrease compared to the SBTi baseline. collaborating with their own supply chain to deliver the same reductions.
This requirement was shared with more than 5,000 companies around
This decrease was influenced by the launch of the new Range Rover and the globe.
Range Rover Sport through reductions in their use phase emissions (as
described in initiatives). The result is not a substantial change from our KEY PRIORITIES FOR FY2023/24
decarbonisation pathway, which predicted limited reductions until the
launch of more zero-tailpipe-emission vehicles in the coming years. Digitalisation
The piloting of digital solutions across scope 1, 2 and 3 to automate
K E Y I N I T I AT I V E S reporting and provide increased analytical and forecasting capabilities.

Scope 1 and 2 Awareness

Sustainability awareness for JLR employees to secure understanding as
The vehicle pre-production workshop at Gaydon piloted a radiant heating the fundamental basis for our sustainability business transformation.
solution providing an 80 per cent reduction in energy consumption
(11tCO2e) which has potential to be rolled out to other applicable Decision-making
manufacturing areas. Continue to embed scope 1, 2 and 3 emissions into everyday decision
-making.
Technology improvements in the sealing of vehicle underbodies has led
to the decommissioning of curing ovens at Castle Bromwich saving 128
tCO2e.

A n n ua l Re p o r t 2022/23 28
CIRCULAR ECONOMY AND RESOURCE EFFICIENCY

Th e c i rc u l a r e c o n o my is a n ess e n t i a l p a r t of o u r p at hw ay to n e t ze ro, c re at i n g v a lu e i n to a res o u rc e - c o n s t r a i n e d wo r ld

a n d m a i n t a i n i n g resi l i e n c e i n o u r su p p ly c h a i n . We h ave c le a r ly es t a b l is h e d Tat a G ro u p t a rge t s a n d a s t r ate g y i n ac t i ve
d eve lo p m e n t to m e e t t h es e t a rge t s .

The Tata Group’s Project Aalingana has established three circular economy Circular enablers
targets for the group: We will increase our engagement on circularity with our employees and
value chain partners.
1. More than double the content of renewable or recycled resources in
products, over 2020 baseline, by 2025. To provide validation of our future progress as well as support the
2. Replenish freshwater (India operations only) with zero waste to development of partnerships, education and communication of our
landfill by 2030. activities, we have partnered with the Ellen MacArthur Foundation.
3. Replenish more freshwater than consumed by 2040. During the coming year we plan to establish a baseline across our circular
economy activities.
Reducing resource consumption and waste, and increasing recycled
content in our materials will reduce the carbon intensity of key raw
materials such as steel, aluminium and battery cell materials. Reducing
our consumption of virgin materials will also reduce our supply chain’s
impact on nature and biodiversity.

Our circular economy strategy and the metrics and targets that will drive
this strategy are based around three key areas: JLR JOINS THE ELLEN MACARTHUR
F O U N D AT I O N A S A N E T W O R K PA R T N E R
Circular resources
We aim to maximise our resource efficiency, resilience and regenerative We’re proud to join the Ellen MacArthur Foundation as a Network
content through increased recycled content, reduced waste to landfill Partner, an organisation dedicated to accelerating
and incineration, and an expansion in our use of renewable energy. the transition to a circular economy based on three principles: eliminate
waste and pollution, circulate products and materials, and regenerate
In line with this strategic direction, we are supporting two Innovate UK nature.
projects that enable circular supply chains. RECOVAS (Recycling of EV
Cells from Obsolete Vehicles At Scale) offers the potential for a new Collaborating with industry specialists and growing our ecosystem
circular supply chain for electric vehicle batteries in the UK. SCREAM allows us to learn and progress, as we transition to a circular,
(Securing Critical Rare Earth Magnets) is a project to produce recycled sustainability-rich, electric-first business. This will ultimately play an
NdFeB magnets from scrap to be used in clean technologies such as wind important role in achieving carbon net zero across our supply chain,
turbine generators in electric vehicles. products and operations by 2039, as set in our Reimagine strategy.

Circular products
We will increase the longevity of our components and products, through
In addition, we have joined the World Economic Forum Circular Car
the implementation of circular economy principles in design and
Initiative, a network platform to share insights, best practices and
engineering, to increase repairability and recyclability.
challenges in the area of circularity (always in line with anti-trust
requirements), as we believe that knowledge sharing and collaboration
We will also target new business models from remanufacturing and
are critical to accelerate sustainability in our industry.
secondary products, such as engines, powertrains and ‘second life’
batteries.

For example, in 2021, we partnered with Pramac to develop a portable

zero-emission energy storage unit powered by second-life Jaguar I-PACE
batteries. The mobile Off Grid Battery Energy Storage System (ESS)
supplies zero-emission power where access to the mains supply is limited
or unavailable, with a capacity of up to 125kWh. JLR JOINS THE WORLD ECONOMIC FORUM
C I R C U L A R C A R S I N I T I AT I V E
Reusing vehicle batteries will create new circular economy business
models for JLR in energy storage and beyond. Second-life battery supply Alongside electrification, we will tackle emissions embedded in vehicle
for such applications could exceed 200 gigawatt-hours per year by 2030, materials and accelerate the transformation to circular business models.
creating a global value over US$30 billion, and we are expanding such
battery end-of-life circular economy initiatives. Growing our ecosystem and working collaboratively with like-minded
organisations is at the heart of our Reimagine strategy and critical to the
We will also generate value through circular business models, such as our rapid transpformation of our own business and the wider automotive and
‘transport as a service’ offering, Pivotal. mobility industry, as we work towards carbon net zero and circularity.

A n n ua l Re p o r t 2022/23 29
N AT U R E A N D B I O D I V E R S I T Y

B i o d i ve r si t y loss a n d e c os y s te m c o l l a ps e is o n e of t h e b ig ges t t h re at s f ac i n g h u m a n i t y i n t h e n ex t d e c ad e . We a re
d eve lo p i n g a s p e c i f i c n atu re a n d b i o d i ve r si t y p o l i cy, a s p a r t of o u r ove r a rc h i n g c o m m i t m e n t to t h e e nv i ro n m e n t a n d
s o c i e t y.

Developing our policy Our vehicle manufacturing sites in Brazil and Slovakia have ongoing
As part of the Planet Regenerate focus area, we are creating a nature initiatives centered around habitat restoration and species monitoring.
and biodiversity strategy, using developing frameworks such as Taskforce In Brazil, this is in partnership with the State Environmental Institute
for Nature-related Financial Disclosures (TNFD) and the Science Based (INEA) and researchers of the Middle Paraíba Wildlife Refuge (REVISMEP)
Targets Network (SBTN). In line with Tata Group’s Project Aalingana to contribute to the goals within the Wildlife Refuge to protect plant
strategy and approach, we are creating a nature and biodiversity strategy, and animal communities. In Slovakia, there is ongoing cooperation with
and assessing our impact and dependences on nature. the University of Constantine the Philosopher, to monitor the natural
restoration of habitats as well as the inundation and revitalisation of
Biodiversity at our facilities wildlife communities.
We are in the early stages of standardising our approach to biodiversity
management across our direct operations. However, our global facilities Ongoing management and evaluation
are already addressing biodiversity as part of ongoing site management, As part of our Environmental Management System (EMS), we have an
and this approach is looking to be replicated elsewhere. internal procedure to conduct Environmental Impact Assessments (EIAs)
for evaluating projects, such as changes to existing facilities or new
In the UK, Gaydon and Fen End Proving Grounds continue to maintain operations, and for evaluating funding requests prior to project approval.
and enhance habitats under their site ecology management plans. In This includes impacts to protected species and habitats.
June 2022, our Engine Manufacturing Centre in Wolverhampton invited
Staffordshire Wildlife Trust to visit the site, to offer recommendations Ecological appraisals are undertaken to understand potential risks to
around specific management actions to improve the diversity of wild protected habitats and species from development. Where there has been
pollinator species, as well as advice for tree planting for a memorial significant site development and construction, biodiversity management
garden. plans are in place to restore habitats and monitor protected species.

INTRO D U CTI O N TO EN G AG E FO R GO O D

A s a g lo b a l c i t ize n , we re c og n is e t h e i m p o r t a n c e of ad d ressi n g t h e e nv i ro m e n t a l a n d s o c i e t a l t h re at s we f ac e .

Meeting the significant social and environmental challenges of our Key projects
generation is extremely important to JLR. As part of our desire to be more We currently support our citizenship activity through partnerships with
purpose-led, and reflected in our Reimagine strategy, we want to inspire, NGOs, employee volunteering, vehicle supply and project funding. We
enable and collaborate with our stakeholders - including employees, also supply vehicles and share technology to support conservation and
partners and clients - to scale the positive environmental and social humanitarian projects across the globe.
impact we can have.
Through our volunteering programme, we encourage and enable our UK
Corporate citizenship employees to contribute to local community development. Our policy
We are acting to take care of the communities and environments in which enables UK employees in the Company to volunteer for up to 16 working
we operate and make a positive, lasting impact for the world. This is the hours per year.
soul within our Purpose. Through FY2023/24, we will be scaling up our
global corporate citizenship activity within our impact areas.

A n n ua l Re p o r t 2022/23 30
PA RT N E R S H I P S

British Red Cross and International Federation of the Red Cross Appeal, to support people fleeing conflict in their homeland and seeking
Our long-standing partnership with the British Red Cross and the refuge in a safe place. We mobilised 23 vehicles from the UK and Europe
International Federation of the Red Cross (IFRC) was first established to support the IFRC taking vulnerable people from the Ukraine border to
in 1954. Our current focus is on supporting emergency crisis response safety in Moldova. Six of these vehicles remain on loan in the field.
teams assisting those affected by floods and other weather-related
events such as heavy rain, wind and snow, as well as people affected by Toré Institute, Brazil
house fires and power cuts. Alongside the supply of vehicles, our funding We developed an agroforestry educational programme in partnership
enables the training of volunteers, and provides essential items such as with the Toré Institute, in a public school local to our Itatiaia manufacturing
torches and warm clothing. plant, to teach 550 children aged 7-14 years old about sustainability. The
educational project teaches reforestation and composting, and gives
Our support spans the globe, strengthening risk reduction and developing children the opportunity to plant and grow their own food.
emergency response mechanisms, helping reduce disaster and
humanitarian risks for the most vulnerable areas. We have supported China Soong Ching Ling Foundation, China
Community Resilience Teams (CRT) in New South Wales, Australia, to The ‘Journey for Vision Programme’ started a new journey in Qinghai
identify people of influence in small communities to map resources and Province. The programme carried out vision screening for nearly 30,000
strengths, and connect them with one another to ensure the community children, providing 300 children with free surgical treatment.
is prepared for disruption.
The programme also provided professional ophthalmology training for
In Italy, we have supported the creation of integrated urban disaster 100 local doctors and donated 1,000 eye care kits and £144,578 worth
preparedness and response plans, mapping urban services’ capacity of ophthalmic medical equipment, for the long-term benefit of the
for health, food supply, water and sanitation, energy and other critical community.
services, helping communities transform information into emergency
response plans. In Nepal, we have supported communities to increase the Since its launch in 2014, the ‘Journey for Vision Programme’ has covered
resilience of their people, services and institutions. seven Chinese provinces, investing nearly £3.3 million in helping more
than 260,000 young people.
Disaster Relief Alliance
We are an honorary partner of the Disaster Relief Alliance (DRA), whose Give Her A Crown, South Africa
contributions help with global disaster preparedness, as well as responding This female empowerment platform uses the power of storytelling and
quickly to emergencies across the globe. the arts to make a difference in the fight against gender inequality and to
promote female empowerment in South Africa. The focus is on the power
Recently, the British Red Cross released £30,000 from DRA to support of storytelling and the arts to connect, inspire and empower. To date,
the humanitarian relief response to the Türkiye (Turkey) and Syria we have supported six female artists with a bursary, as well as female-
earthquakes. owned production companies, female students, female journalists, and
influencers.
JLR donated an additional £20,000 to the British Red Cross Ukraine Crisis

Two men are shown and one is dressed in a Red Crescent Movement Children planting trees as par t of Agroforestr y programme in Itatiaia,
jacket. They reach into a dark space below the rubble to look for Brazil.
sur vivors. © Syrian Arab Red Crescent

A n n ua l Re p o r t 2022/23 31
INTRO D U CTI O N TO RE SP O NSIB LE BUSIN E SS

Responsible Business is the third focus area of our sustainability strategy • having clear policies and standards for key topic areas to guide
and covers how we do business ethically and with integrity. Integrity is behaviour; and
one of our core values as a business, requiring each person working for • sharing our progress and performance in an open and transparent
JLR or on its behalf, to act ethically and to do the right thing. way.

Responsible Business goes beyond meeting the minimum legal Responsible Business covers a number of topic areas, including:
requirements. It is about:
• Health, Safety, Wellbeing and Working Conditions
• ensuring we are tracking and staying ahead of upcoming legislation • Diversity and Inclusion
and regulation; • Human Capital Development
• understanding the risks related to our business and putting measures • Data Privacy and Information Security
in place to mitigate and adapt to those risks. See the risk section on • Responsible Supply Chain
pages 45-49 for more details; • Compliance and Ethics including Human Rights

H E A LT H , S A F E T Y , W E L L B E I N G A N D W O R K I N G C O N D I T I O N S
Health and Safety business should operate in order to reduce the risk of harm to people.
The Occupational Health and Safety (OHS) Management System is a The OHS is based around three pillars: Safe Place; Safe Systems and Safe
framework of practical plans and procedures which describe how the People, underpinned by ten principles.

SAFE PLACE SAFE SYSTEMS SAFE PEOPLE

1. Safe facilities and 3. Process and safe systems 7. Contrac tors and a gency
equipment of work workers

2. Induc tion and 4. Mana ging change 8. Super vision and

familiarisation monitoring
5. Suitable and suf f icient
risk assessment 9. Competency and training

6. Auditing and process 10. Communic ations and

conf irmation instruc tions

C O M P E T E N C E , C O N T R O L , C O M M U N I C AT I O N S , C O - O P E R AT I O N

A n n ua l Re p o r t 2022/23 32
The strategy for safety is based around the ‘ambition of Zero Harm.’ This Key actions for FY2023/24 include maturing the Zero Harm metric to
is measured by year-on-year continuous improvement via our Zero Harm include wider aspects of potential harm, such as matters of health and
Metric. The Zero Harm Metric is derived from First Aid and Lost Time wellbeing and a focus on the severity of an incident within the metric, to
Incidents, where an injury has occurred, regardless of fault or severity. more accurately describe the level of harm that an incident incurred. This
The trend over the last two years is positive overall but has started to will allow for increased focus on actions that prevent more severe harm.
show more fluctuation in the data as the numbers become progressively
smaller. This external audit activity is supported by a schedule of internal audits
which cover a range of subjects and activities. Over the coming year the
Lost time incidents continue to show an improving trend year-on-year. This internal audit schedule will be evaluated to ensure that the audits are
demonstrates continued commitment by our sites to understanding root quality events driving positive actions to reduce harm.
cause and verifying preventative action, as well as engaging employees in
positive choices, including reporting of issues. Wellbeing and working conditions
During FY2022/23 we delivered Covid-19 and influenza vaccinations to
The ongoing drive to Zero Harm is supported by the development of Zero colleagues on sites across the business.
Harm plans, produced within each function and manufacturing site. Each
plan delivers activities that drive visible improvements in relevant areas. We also opened our new Centres for Wellbeing, which are our one-stop-
shop for group and individual wellbeing interventions for employees.
We consolidated our work with the external auditor in a round of The programmes have been designed with clinical outcomes that have
certification visits to monitor ongoing adherence to the ISO 45001 this been very positive and support the personal satisfaction of participants.
year. Site audits covered document and management system reviews. UK We now have programmes focusing on rehabilitation, nutrition, mental
sites received recommendation for ongoing certification which sends a health, fitness, and long-Covid across our UK sites and are expanding
strong message regarding the importance of safety and wellbeing to our internationally.
employees, partners and clients.

A n n ua l Re p o r t 2022/23 33
DIVERSIT Y AND INCLUSION

We a re c o m m i t te d to f os te r i n g a m o re d i ve r s e , i n c lu si ve a n d u n i f i e d c u ltu re t h at is re p res e n t at i ve of o u r e m p loye es , o u r

c l i e n t s , a n d t h e s o c i e t y i n w h i c h we l i ve .

Not only do we believe it is critical that JLR reflects the diversity of the regardless of an employee’s characteristics.
world, we also believe we can truly thrive when we create a culture where
employees feel included, where everyone can be their authentic selves, Training and development
and where fresh ideas, challenges, and opinions are heard. We have developed three e-learning modules for our UK business with
future plans to create the same for all regions, to ensure that all our
We are taking action to make tangible impact, measured against three colleagues have a good understanding of diversity and inclusion, and how
internal targets: inclusivity can affect those around us. These modules have reached a
minimum completion rate of 92 per cent.
Target 1: Globally, 30 per cent of all senior leaders to be female, by 2026.
FY2022/23 performance is 16 per cent, achieving this year’s target We have also established a face-to-face diversity and inclusion training
programme, for colleagues across our UK manufacturing sites.
Target 2: In the UK, 15 per cent of all senior leaders to be from a Black,
Asian or Mixed Ethnicity background, by 2026. In July 2022, we announced the appointment of two diversity and
FY2022/23 performance is 6 per cent, achieving this year’s target inclusion Board co-sponsors, Barbara Bergmeier and François Dossa,
ensuring diversity and inclusion is represented at the highest levels of our
Target 3: Globally, for our Inclusion Index to reach over 80, by 2026. business. They are supported by 14 global employee resource groups,
FY2022/23 performance is 74, exceeding this year’s target (This asks ensuring that employees have spaces where they are able to share their
employees to rate the statement in our annual employee engagement lived experiences, and also to learn from one another’s experiences.
survey “I would recommend JLR as an inclusive employer”.) These have been instrumental in showcasing the power of allyship within
our organisation.
Our first ever external diversity and inclusion brochure outlines our five-
year strategy and the targets that we have committed to. External partnerships
Since 2018, we have held an official partnership with Stonewall. This
Our global approach relationship and the insight provided informs our policies and specific
Beyond the UK, our global markets are actively supporting in their local guidance and support, such as our ‘transitioning at work’ guidance for
approach to diversity and inclusion. To create meaningful progress toward employees and managers. We have been steadily increasing our position
diversity and inclusion, we are working with our regional and country in the Stonewall Index.
leaders to establish an understanding of local cultures, legislations and
current inclusivity status. We have been a member of Business In The Community since 2019,
providing support as a race partner. We were the first automotive
Our global policy company to sign the Race At Work Charter in 2019, outlining a list of
Our global diversity and inclusion policy highlights our zero-tolerance commitments to improve equity in race. We signed the updated Charter
approach to bullying, harassment, and other negative behaviours, in 2022, to re-state our commitment to driving action in this area.

A n n ua l Re p o r t 2022/23 34
Most recently, in 2022, we joined in partnership with the Business Disability Pay Gap Report - gender and ethnicity
Forum, and in FY2023/24, we will have a specific focus on disability In FY2022/23, we produced our first ethnicity pay gap report, alongside
and neurodiversity, to help ensure that we are providing employees the annual gender pay gap report in the UK. It shows our commitment to
with everything they need to work at their best and feel confident and being more transparent both internally and externally, and to ensuring we
comfortable in doing so. use data to drive our actions and decision-making.

H U M A N C A P I TA L D E V E L O P M E N T

Through our Reimagine strategy, we are at the forefront of the rapidly Upskilling for the future
changing automotive industry, with a focus on electrification, digital We are also focused on evolving the skills of our workforce through
services and data. As technologies evolve, so do the skills and capabilities upskilling programmes that build critical capabilities internally. To enable
of our workforce. How we respond to this changing skills landscape is a the transition from internal combustion engines to battery electric
key focus for our people strategy. vehicles, we have upskilled our engineers on electrification through the
co-creation of bespoke courses, in partnership with a local university.
Talent attraction Focus has also been placed on upskilling employees in ‘product owner’
Software is essential for us to deliver next-generation automated driving and ‘scrum master’ roles, to enable agile ways of working in programme
systems, digital services, and experiences for clients. ADAS (Advanced delivery.
Driver Assistance Systems) and autonomous driving skills have been
identified as critical to this ambition, but are a sought-after skill set in Early careers
the market. To attract these skills, and compete with other industries, To expand our talent pool and establish a pipeline of skills to transition
we have expanded our global operational footprint in Germany, Italy to an electrified future, there is continued investment in early careers
and Spain, in addition to existing hubs in Manchester, Ireland, Hungary, programmes which is made up of apprenticeships, undergraduate
Portland, India and China, to access a wider skills pool and harness the positions and graduate positions. Through hiring drives, we expect to see
best talent for our business. over 1,000 people join JLR in 2023 globally, a 55 per cent increase on
the previous year and a new record intake for the Company. We were
third in Targetjobs’ most popular graduate recruiter in Engineering, Design
and Manufacturing award 2023 and named a Top 100 Apprenticeships
Employer in 2022.

A n n ua l Re p o r t 2022/23 35
D ATA P R I VA C Y A N D I N F O R M AT I O N S E C U R I T Y

Data Privacy We have deployed a Personal Data Privacy eLearning that is mandatory
The JLR Code of Conduct (the Code) is based on the Tata Code of for all direct employees, with completion of this training monitored. This
Conduct and is applicable to all personnel working for and on behalf of is supported by a comprehensive framework of functional and role-based
JLR globally (JLR Personnel), including direct employees and agency and data privacy compliance training.
contract staff. The Code articulates the standards of behaviour expected
of JLR Personnel and makes clear that at all times they should act in Incidents of non-compliance are reported through confidential reporting
accordance with the Code, and applicable laws and regulations, including and case management channels and are subject to regular KPI monitoring
those related to Data Privacy compliance. and to our continuous improvement and non-recurrence model.

The requirements of the Code are further supported by a corporate The status of our Data Privacy Compliance programme is overseen by the
policy on Privacy and Personal Data Protection. All direct employees are Privacy and GDPR Compliance Steering Committee and is reported on
required to sign up to the Code on joining the business and to annually a regular basis both to the JLRL Board and to the Audit Committee and
declare compliance against the same. Compliance Committee of the Company.

We have deployed a comprehensive Privacy Compliance Programme, Information Security

including a Privacy by Design and Default process requiring all key Information Security is governed within our overall governance framework.
processes handling personal information to undergo a privacy risk The governance model used is based on the three lines of defence with
assessment designed to meet our corporate and legal commitments regular reporting to the Company’s Board of Directors, the JLRL Board
for the protection of private and personal data, and to meet our modern and other enterprise supervisory committees.
luxury promise to our clients and employees.

Super visor y Board – The Company

Ta t a / T h e C o m p a n y
Audit, Risk, Compliance, etc

JLRL JLRL BOARD

Delegated authority through Material Oversight Boards and Committees
En ter p r i se G e n e ra l D at a Pro te c ti o n
G over n a n ce Re g u l ati o n ( G D PR ) En te r pr i s e R i s k C o mpliance Secu rity

IT R i s k Cybe r G overnance, Ris k Secu rity Pre

Id e n ti ty a n d Ac c e s s
Fu n c ti o n a l G over n a n ce and a n d C ompliance ( GRC ) Architec tu re D es ign
M a n a ge m e n t ( IA M )
Au d i t M a n a gement Bo ard Au tho rity ( SPA DA )

I nfo rmatio n and

Ma n a gem en t Sa r ba n e s Vu l nerability
Cyber Secu rity
O x ley ( SO x ) M a n a gement
( I C S)

S T R AT E G I C M A N A G E M E N T O F I N F O R M AT I O N S E C U R I T Y

Business Strategy and Alignment

Security Strateg y Security Programme Risk Roadmap

Cyber security begins with the business strategy and what this means for our security priorities.
Security is managed strategically based on a three year cycle with annual recalibration.

The Information Security Compliance Framework is tailored to meet our model and delivery plan for continuous improvement on maturity of
requirements through regulatory, statutory and enterprise compliance security disciplines. We have recently achieved UNECE R155 Compliance
requirements. Policy requirements are communicated throughout the certification from Vehicle Conduct Authority.
group with baseline information security and compliance requirements.
A dedicated Information Security Education and Culture team delivers
We manage security strategically through a multi-year programme to holistic and targeted training through multiple channels. Our Infosec has a
protect the confidentiality, integrity and availability of information assets strategic programme to nurture better cyber literacy, transform attitude,
to an acceptable level of risk. This is validated internally and externally drive natural ownership and instil in making protection of our clients, our
through audits and independent assessments of our strategy, operating people, our business and our brands second nature in how we do business.

A n n ua l Re p o r t 2022/23 36
R E S P O N S I B L E S U P P LY C H A I N

A s p a r t of o u r Re im a g in e s t r ate g y, we a i m to ac h i eve c a r b o n n e t ze ro e m issi o n s ac ross o u r v a lu e c h a i n i n c lu d i n g o u r

su p p l i e r s , by 2039, w i t h a CO 2 e re d u c t i o n of 54 p e r c e n t , p e r ve h i c le , by 2030. At t h e s a m e t i m e , we e n f o rc e a s t r i c t
c o d e of c o n d u c t o n a l l o u r d i re c t su p p l i e r s , i n a re a s i n c lu d i n g h u m a n r ig h t s a n d wo r k i n g c o n d i t i o n s , m ate r i a l s o u rc i n g ,
a n d e t h i c a l b e h av i o u r s .

Advancing digitalisation for a more sustainable supply chain From the responses received, we are able to determine those suppliers
In the past 12 months, we have enhanced the sustainability data received with the highest CO2e footprints, to engage with them to understand
from our direct, indirect, aftermarket and branded goods suppliers. This their CO2e reduction roadmaps.
data is analysed and incorporated into our supplier sourcing strategy.
We have also established a pilot process to identify high risk suppliers in In 2022, we almost doubled the number of suppliers we invited to
relation to sustainability, to develop with them performance improvement participate in this programme, and achieved a 76 per cent averaged
plans. The pilot completed in January 2023, with the ultimate target to response rate.
incorporate sustainability performance reviews with our tier 1 suppliers
through the Supplier Relationship Management process. Since September 2022, we have required our global supplier network to
commit to sustainability targets approved by the Science Based Targets
As part of Refocus (see page 10), our Industrial Operations Division has initiative (SBTi). All tier 1 suppliers were asked to set a decarbonisation
employed world-class digital risk sensing tools and analytics in its risk pathway, report transparently and demonstrate progress towards their
operating model, to provide internal and external stakeholders with targets, disclosing their carbon reporting and collaborating with their own
timely, relevant and actionable insights, and so enable our transition to supply chain to deliver the same reductions.
systemic resilience and proactive risk management.
We continue to host emissions roadmap workshops with high impact
In collaboration with our supplier partners, we are also committed to suppliers, building a clear picture of reduction activities against scope 1, 2
the use of the latest digital technologies to map and utilise multi-tier and 3 emissions, and identifying opportunities for collaboration activities
traceability data, as the foundation of a sustainable, ethical and resilient to reduce emissions.
value chain. We will have onboarded the first supplier partner at the start
of FY2023/24 and defined a due diligence assessment process that pro- Rigorous supplier assessments
actively identifies potential risks based on the data received, so that we In our supplier sourcing, we undertake a number of formal assessments.
can work with impacted suppliers to resolve. At sourcing stage, we require all production suppliers invited to tender
to complete the Sustainability Assessment Questionnaire (SAQ). This is
Enhancing our sustainability insights an industry-wide assessment developed through the DS initiative, which
Driven by our ambitious 2039 carbon net zero goal and 2030 CO2e provides a high-level score of the supplier’s sustainability management,
reduction target, we have developed new capabilities to measure our relating to: company management; human rights and working conditions;
upstream purchased goods and services emissions, positioning real health and safety; business ethics; environment; responsible supply chain
supplier data at the core of our value chain decarbonisation strategy. management; and responsible sourcing of raw materials.

By replacing CO2e estimates with real-world data, we have generated Once business is awarded, the supplier is onboarded to the
insights into emissions hotspots, allowing us to better tailor our product SupplierAssurance platform, where the responses to the SAQ are
development and sourcing, to minimise the environmental footprint of validated. Where gaps are identified, the supplier is provided with
our vehicles. From 2023, we aim to directly measure supplier emissions recommendations to improve. All active suppliers are required to update
for 95 per cent of the footprint of our new vehicles. their SAQ on at least an annual basis.

We also continue in our strategic partnership with the Drive Sustainability For incumbent suppliers, we also have an annual compliance assessment
(DS) initiative, facilitated by CSR Europe, collaborating with other vehicle programme on human rights and working conditions, conflict minerals and
manufacturers on sustainability topics, within anti-trust parameters. environmental impact, and an annual supplier social audit programme,
Through this forum, partners are able to develop consistent, agreed tools, based on SA8000 standards.
methodologies and approaches that industry tier 1 suppliers can utilise,
and cascade through their own supply chain. Suppliers selected are required to support the audits and to also engage
in any remediation activity identified. Suppliers are monitored until
In a separate initiative, we are exploring digital capabilities to enhance all remediation actions are completed satisfactorily, with appropriate
supplier transparency to our procurement teams in real time, in the area evidence.
of sustainability.
Our use of conflict minerals
Minimising supplier environmental impacts “Conflict minerals” refers to columbite-tantalite (coltan), cassiterite,
With over 5,000 suppliers and partners, we believe it is essential to wolframite, gold, and the derivatives tantalum, tin, and tungsten (3TGs).
develop the supply of low carbon materials and processes within our We further recognise that the procurement of minerals including cobalt
existing network. may be subject to the same concerns as 3TGs.

On an annual basis, we select a number of our direct, indirect procurement We support industry-wide efforts to identify, reduce, and hopefully
and aftermarket suppliers, to complete one or more CDP questionnaires eliminate the use of conflict minerals originating from the DRC and
to assess their environmental impacts. adjoining countries. To further this goal, we use the Conflict Minerals
Reporting Template (CMRT) developed by the Responsible Minerals

A n n ua l Re p o r t 2022/23 37
Initiative (RMI), to gather and exchange supply chain information. suppliers to meet, across business ethics, environment, human rights
and working conditions, health and safety and responsible supply chain
We are committed to complying with any applicable requirements and management.
have implemented a due diligence process that aligns to the Organization
for Economic Co-operation and Development (OECD) Due Diligence Additional requirements relate to sustainability data provision, quality
Guidance for Responsible Supply Chains of Minerals from Conflict- certifications such as ISO 14001, export controls and sanctions, SBTi,
Affected and High-Risk Areas (OECD Guidance), to meet our obligations carbon offsetting, and social audits, which is solely captured in the web
under the legislation. guide.

Our suppliers are expected to establish their own responsible minerals The web guide also outlines our key corporate policies, such as our Code
policies, due diligence frameworks, and management systems that align of Conduct, Anti-Bribery and Corruption, Gifts and Hospitality, and Human
with RMI and OECD guidance. Rights. All these policies are detailed on our corporate website.

Supplier programmes should be designed to prevent conflict minerals Later in 2023, we plan to deploy a Supplier Code of Conduct that will
from being included in the products sold to JLR. Should we determine complement the web guide and will be available via our corporate website.
that a supplier has failed to develop and implement reasonable steps to
comply with this policy, we reserve the right to take appropriate actions Corrective actions
with the supplier under a breach of our global terms and conditions. Any corrective actions placed on suppliers are tracked and oblige the
supplier to provide for review all necessary evidence of their completion.
Our Supplier Code of Conduct Through FY2022/23, 114 corrective actions were captured and monitored
Our supplier sustainability web guide outlines our requirements for to completion.

A n n ua l Re p o r t 2022/23 38
COMPLIANCE AND ETHICS

J LR is c o m m i t te d to c o n d u c t i n g b u si n ess f a i r ly a n d h o n es tly. We ex p e c t t h e h ig h es t leve l of e t h i c a l b e h av i o u r w h e n

i n te r ac t i n g w i t h c l i e n t s , re t a i le r s , su p p l i e r s , gove r n m e n t a ge n c i es , c o m m u n i t i es a n d e ac h o t h e r.

Code of Conduct Human Rights in our own operations and our supply chain can be found in
Directors and employees and others working for and on behalf of JLR are our annual Slavery and Human Trafficking Statement, which is available
required to comply with the JLR Code of Conduct, which is intended to at our corporate website.
guide them in putting the Group’s ethical principles into practice. All direct
employees are required to sign up to the Code of Conduct on joining the Oversight of Compliance and Ethics
business. The Compliance and Ethics landscape covers matters including but
not limited to: anti-bribery and corruption; anti-money laundering;
The Code of Conduct is supported by a suite of corporate policies that data privacy; export controls and sanctions; competition law and
give additional guidance on specific compliance and ethics topics. The emissions regulation. There are a number of dedicated teams focused on
Code of Conduct and a selection of our corporate policies can be found at specific areas of compliance, including Group Compliance and Product
our corporate website ( jaguarlandrover.com). Compliance. The compliance programmes run by these teams are
overseen by the Company’s Compliance Committee, which meets on a
Annual Compliance Declaration quarterly basis.
In January each year, our Group Compliance team runs an Annual
Compliance Declaration process, whereby all personnel with corporate Speaking Up / Whistleblowing Policy
IT access are required to confirm that they are aware of the requirements Employees, contract staff, third parties with whom the Group has a
of the Code of Conduct and certain key corporate policies. For January business relationship (such as retailers, suppliers and agents), and any
2023 (and for each of the previous seven years), 100 per cent of the member of the public are encouraged to raise ethical and compliance
target population has completed these declarations. concerns to the Group Compliance team.

Anti-Bribery and Corruption The Group’s confidential reporting (whistleblowing) policy encourages
The Code of Conduct and a number of supporting policies and procedures employees and others to report, in confidence and anonymously if
articulate clearly that we do not tolerate bribery or corruption in any preferred, concerns about suspected impropriety or wrongdoing in any
form. All activities globally are covered by our bribery and corruption risk matters affecting business. Our policy is very clear that we do not tolerate
assessments and these assessments have informed our anti-bribery and any form of retaliation against anyone reporting legitimate concerns.
corruption programme, policies, procedures and controls.
Any matters reported through the above routes are thoroughly
Human Rights and Anti-Slavery investigated and the progress and results of investigations are subject
The Code of Conduct and Corporate Policy on Human Rights set out our to oversight by the JLR Unusual Events Committee. The Unusual Events
commitment to respecting Human Rights and complying with all laws, Committee in turn provides quarterly updates on matters reported to the
rules and regulations governing human rights in the territories in which the Company’s Audit Committee.
we operate. Further information with regard to our programme to address

A n n ua l Re p o r t 2022/23 39
C E R T I F I C AT I O N S

EMS policy, implementation and certification IATF16949:2016 / ISO9001 certification

Environmental Management is an integral part of our corporate strategy. JLR’s vehicle and propulsion system manufacturing plants and direct
We were one of the first automotive companies to receive certification, support locations are certified to IATF16949:2016 / ISO9001 including
in 1998. ISO 14001 is the principal management system standard which Solihull, Halewood, Castle Bromwich, BAC, EMC, Oxford Road, Fen End,
specifies the requirements for the formulation and maintenance of an Gaydon, Whitley (UK), Nitra (Slovakia), Gratz (Austria), Itatiaia (Brazil),
Environmental Management System. This helps the business to control Pune (India) and CJLR (China). We are one of only two European-based
environmental impacts, manage legal compliance and drive continual vehicle manufacturers to certify its own plants to IATF16949 as well as
environmental improvements. The international standard also places expecting the certification of its supply base. Annual certification audits
emphasis on organisational leadership including how environmental are performed by an independent third party on behalf of ISO/IATF, with a
factors are integrated into strategic planning. Environmental performance main re-certification audit every three years.
is a key supplier performance metric - ISO 14001 certification is a
requirement for all manufacturing tier 1 suppliers.

T H E U N I T E D N AT I O N S S U S TA I N A B L E D E V E L O P M E N T G O A L S
(SDGs)

The United Nations Sustainable Development Goals (SDGs) are the We recognise the importance of all 17 SDGs. Given the nature of our
blueprint to achieve a better and more sustainable future for all. business, we have focused on the three SDGs where we believe we have
Developed in 2015, the 17 SDGs support global change and sustainable the greatest impact.
growth, addressing the challenges we face such as poverty, inequality and
climate change.

A n n ua l Re p o r t 2022/23 40
DECENT WORK AND ECONOMIC GROWTH

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Our core values and business principles for Diversity and Inclusion, Health and Safety, Human Rights, and Responsible Supply
Chain represent how we will drive real and positive change. In addition to our zero-harm safety journey, we are committed to
fostering a more diverse, inclusive and unified culture that is representative of our colleagues, our clients and the society in which
we live. We also enforce a strict code of conduct on all our direct suppliers, in areas including human rights and working conditions,
material sourcing, and ethical behaviours.

For more details see:

• Diversity and inclusion

• Health and safety
• Human rights
• Responsible supply chain
• Compliance and ethics

RESPONSIBLE CONSUMPTION AND PRODUCTION

Ensure sustainable consumption and production patterns.

As part of our Reimagine strategy, our circular ambition is to develop strategy and targets to address circular economy material
topics (i.e. resources including water, waste, etc.). Our ambition will be supported by maximising resource efficiency, resilience
and regenerative content, increasing the longevity of components and products, and generating value through circular business
models.

For more details see:

• Circular economy and resource efficiency

C L I M AT E A C T I O N

Take urgent action to combat climate change and its impacts.

Through Planet Regenerate we will drive our company transformation towards carbon net zero by 2039. We aim to achieve
our carbon emissions targets by decarbonising our manufacturing, our operations, our supply chain and our products. We have
built a robust strategy to deliver against our targets and the delivery of this strategy has been integrated into our Refocus 2.0
programme.

For more details see:

• Introduction to Planet Regenerate

• Refocus 2.0 programme

A n n ua l Re p o r t 2022/23 41
P E R F O R M A N C E D ATA TA B L E S F Y 2 0 2 2 / 2 3 :
C L I M AT E C H A N G E

COMMITMENTS AND KPIs

Commitment KPI measurement1 Baseline year FY2019/20 FY2022/23

46% reduction 151,643 (-24.6%)

% Reduction in absolute market-based scope 1 and 2 GHG emissions. 201,029 tCO2e
by 2030 tCO2e

60% reduction % reduction in scope 3 GHG emissions from use of sold products per 255.28 (-0.3%)
255.95 gCO2e
by 2030 vehicle-kilometre. gCO2e

54% reduction % reduction in scope 3 GHG emissions from purchased goods and 64.00 (-0.5%)
64.31 tCO2e
by 2030 services and use of sold products per vehicle sold. tCO2e

GHG EMISSIONS

Metric tonnes CO2e (absolute) by emissions source1 Baseline year FY2019/20 FY2022/23

CO2e emitted (scope 1) 160,416 133,542

18,101
CO2e emitted (scope 2) market-based (location-based) 40,613 (165,526)
(107,014)

CO2e emitted (scope 3) 32,713,013 22,697,894

Scope 3 emissions by category (As per GHG protocol)

i) Purchased goods and services 6,675,250 4,590,052

xi) Use of sold products 26,037,763 18,107,842

Metric tonnes CO2e (per vehicle) by emissions source1 Baseline year FY2019/20 FY2022/23

CO2e emitted (scope 3) 64.31 64.00

Scope 3 emissions by category (As per GHG protocol)

i) Purchased goods and services 13.12 12.94

xi) Use of sold products 51.19 51.06

1 Calculation scope and assumptions provided in SBTi Reporting Methodology Statement available on our corporate website

We engaged Grant Thornton UK LLP to provide independent limited assurance over the GHG emissions data in the table above using the assurance standards ISAE 3000 (Revised) and ISAE 3410. Grant Thornton has

issued an unqualified opinion over the selected data and the full assurance report can be found on our corporate website

WA ST E

Waste generated2, 3 FY2020/21 FY2021/22 FY2022/23

Total metric tonnes of waste generated 27,635 30,008 32,915

WAT E R

Water consumption3 FY2020/21 FY2021/22 FY2022/23

Total cubic metres of water consumption 1,336,479 1,658,929 1,261,504

2 Data excludes metal and construction waste.

3 Sites in scope: Solihull, Halewood, Castle Bromwich, UK EMC, Gaydon, Whitley, Nitra, Brazil, China JV (50% due to financial control).

A n n ua l Re p o r t 2022/23 42
UK STRE AMLINED ENERGY AND CARBON REPORTING (SECR)

PA R A M E T E R FY2020/21 FY2021/22 FY2022/23

Energy consumption used to calculate emissions: kWh 1,032,109,520 1,017,618,240 1,055,904,317

Emissions from combustion of gas tCO2e (scope 1) 105,102 99,872 105,577

Emissions from combustion of fuel, tCO2e, including transport (scope 1) 8,770 8,531 9,637

Emissions from business travel in rental cars or employee-owned vehicles where the company
369 632 1,051
is responsible for purchasing the fuel tCO2e (scope 3)

Emissions from purchased electricity tCO2e (scope 2, location-based) 96,782 91,264 82,430

Total gross tCO2e based on above 211,023 200,299 198,695

Intensity ratio: tCO2e/£m 10.69 10.93 8.71

Data compiled in accordance with the Greenhouse Gas Protocol for Corporate Accounting and Repor ting. UK Government conversion factors are
used for calculating SECR CO2e, and for electricity the location-based approach uses UK average grid intensity conversion factors (DESNZ/BEIS
2023). JLR continues to purchase 100% renewable-backed electricity for all core UK operations.

A n n ua l Re p o r t 2022/23 43
GOVERNANCE

S T R AT E G I C R E P O RT
O U R APPROACH TO RISK

We endeavour to manage and monitor risk factors that could impact our RESPONSIBILITY FOR RISK
plan for long-term sustainable growth.
The Company’s Board of Directors is ultimately responsible for the
management of risks facing our organisation. However, the wider
DEFINING RISK organisation is responsible for the proactive day-to-day management
and control of those risks. The JLRL Board of Directors review key risks to
Risks are uncertain events that could materially impact organisational monitor the progress of remediation actions, whilst the Risk Management
objectives; both adversely and favourably. We recognise that risk is Committee provides oversight of current and emerging risks at a detailed
inherent in all business activities and must be balanced when assessing level that are reviewed against acceptable levels of exposure. Principal
returns. Successful management of risk is therefore key to accomplishing risks and exceptions are reported to the Audit Committee regularly to
our strategic objectives. JLR utilises an enterprise risk management assist in the decision making process and ensure adequate controls are in
(ERM) framework to identify, assess, manage and continually monitor and place to provide sufficient protection to the organisation.
report on key risks that could affect our business.

OUR ENTERPRISE RISK MANAGEMENT RESPONSIBILITY FRAMEWORK

Jaguar Land Rover Automotive plc Board

Audit Committee

Jaguar Land Rover Limited Board of Directors

Risk Management Committee

FIRST LINE OF SECOND LINE OF

THIRD LINE OF
RISK DEFENCE RISK DEFENCE
RISK DEFENCE
Control of risks Oversight and confirmation
Independent controls
Business operations of controls ERM and
assurance internal audit
risk management oversight functions

A n n ua l Re p o r t 2022/23 45
P R I N C I PA L R I S K S

C H A N G E S TO O U R P R I N C I PA L R I S K S D U R I N G F I S C A L Y E A R 2 0 2 2 / 2 3

Two new risks have been introduced into our principal risks: One risk has been removed from our principal risks:

• Rapid Technology Change • Electrification Transformation

• Litigation/ Regulatory
Plans and mitigating actions put in place have proved effective in reducing
Mitigating actions are in place to address our competitiveness with regard our overall exposure in this area to within acceptable levels.
to the technology within our existing and future product portfolio and
services.

FINANCIAL CONSEQUENCES MANAGEMENT OF RISK

Competitive business efficiency If our business is unable to compete Our Refocus transformation programme supports the
effectively on cost we may experience delivery of our Reimagine objectives. This operational
Delivering on our business and strategic objectives is key to lower than expected returns on our transformation programme includes focus on ensuring
realising our planned future profitability and cash generation future investments which may make timely new product delivery to market, and management
through return on our investments. There are risks inherent in us unable to deliver on our financial of the cost base of the business while also ensuring that
the delivery of our planned Reimagine strategy as we make the objectives in the future. This may limit we maximise profitability on our sales. We maintain strong
investments to transition our product portfolio to increase the our ability to reduce net debt in the liquidity in the business to ensure that we can navigate any
proportion of electric vehicles in the future. This includes our future as planned which could reduce funding challenges which may arise in the future.
assumptions around the level of client demand for our products our ability to raise new debt and invest
and delivery of our products at a competitive cost. further in new products in the future.

S T R AT E G I C CONSEQUENCES MANAGEMENT OF RISK

Global economic and geopolitical environment Our international presence and global We continue to closely monitor and risk assess
sales profile means that our business global developments, implementing mitigation
JLR is exposed to changes in the global economic and geopo- could be significantly impacted by the plans as necessary and we continue to maintain a
litical environment, as well as other external factors including global external environment. Our global balanced sales profile across our key sales regions. Our
but not limited to trade tensions, protectionism, wars, terrorism, supply chain could also be negatively diverse global client base gives us the flexibility to react to
natural disasters, climate change, humanitarian challenges and affected by disruption caused by regional changes in demand by adjusting our sales mix into
pandemics that may adversely impact its business. external factors in the future. As a other markets. While we may adjust product features or
result, our business could be adversely content should we face supply challenges informed through
affected through lower sales in each our enhanced supply chain risk management framework.
region.

Brand positioning Demand for our products can be Under the Reimagine strategy both of our brands continue
impacted by our potential inability to our modern luxury vision to support our brand position
The automotive sector remains competitive with new entrants successfully position, maintain and in the market, with Jaguar relaunching as an all-electric
joining the market, particularly the electric vehicle segment. articulate the strength of our brands, in brand from 2025 targeting a more premium segment of the
Under the Reimagine strategy we will target growth in our most addition to our failure to develop new market. As part of the Reimagine strategy we are increasing
profitable segments and continue to drive our modern luxury products and technologies that meet our collaboration and partnerships both within the Tata
vision for the Range Rover, Defender, Discovery and Jaguar client preferences. Group and with external organisations in a number of areas
brands. to ensure we can meet our client expectations.

Rapid technology change N Any delay in the launch of Modern luxury is furthered by our passion to innovate. We
technologically intensive products, prioritise the development of autonomous, connected,
Technology in the automotive industry is evolving rapidly, or if the technology in our products electrified and shared technologies, which is inherently
particularly with respect to autonomy, connectivity and becomes relatively obsolete, could sustainable.
electrification. Falling behind with technology trends will impact sales as clients move
increase the risk of not meeting the expectations of both our to purchase products from our We deliver modernist design philosophy and authentically
new and existing clients. competitors. build desirability and emotional engagement for our brands.
It means we create inspirational, exclusive and exceptional
experiences for our clients.

Increasing

Decreasing

Stable

N New

A n n ua l Re p o r t 2022/23 46
 LEGAL AND COMPLIANCE CONSEQUENCES MANAGEMENT OF RISK

Environmental regulations and compliance We incur additional compliance We have committed to approved science-based targets as
costs to avoid facing significant civil part of our carbon reduction strategy. This will see us reduce
We are subject to a rapidly evolving regulatory landscape with and regulatory penalties, and our absolute scope 1 and 2 greenhouse gas (GHG) emissions by
associated laws, regulations and policies that all impact our competitors may gain an advantage 46 per cent by FY30 from a FY20 base year. We also commit
facilities and vehicles. The transition away from traditional fossil by adopting new emissions-reducing to reduce scope 3 GHG emissions from purchased goods
fuels to renewable energy sources - and the increasing pace and fuel-efficient technologies before and services and use of sold products by 54 per cent per car
of that transition - creates particular compliance challenges, we do. Furthermore, we may incur by FY30 from a FY20 base year. These targets are consistent
in particular tailpipe emissions for automotive companies and significant reputational damage, with reductions required to keep warming to 1.5°C above
wider compliance requirements for carbon emissions produced which could materially impact our preindustrial levels. We see opportunity to continuously to
during manufacturing and other operations. brands and sales, if we fail to maintain develop and expand into low-carbon business models and
environmental compliance. services to support our future clients.
Regulatory and governmental policy
changes may introduce additional
operational costs in the form of carbon
pricing and taxation.

Litigation / Regulatory N Failure to comply with laws and JLR is committed to complying with the laws and
regulations could expose JLR to civil regulations of the countries in which we operate. Our
The litigation process is subject to many uncertainties, and and/or criminal actions leading to specialist teams in areas such as Engineering, Quality,
the outcome of individual matters is not predictable with damages, product recalls or other Legal and Compliance are responsible for monitoring
assurance. Various legal proceedings, claims and governmental regulatory measures, fines and/ legal and regulatory developments, setting detailed
investigations are pending against the Company on a wide or criminal sanctions with negative standards and ensuring awareness of and compliance with
range of topics, including vehicle safety, defective components, impact on our corporate reputation. those standards. See Note 2 for Accounting information
systems or general design defects, emissions and fuel economy, and policies for a discussion of accounting policy for
competition, alleged violations of law, labour, dealer, supplier litigation. Beyond amounts provided with respect to all
and other contractual relationships, intellectual property rights, aforementioned matters the Company does not consider
product warranties and environmental matters. there to be any probable loss arising and no matters which
require further disclosure as a contingent liability1.

1
Competition/Regulator y

In March 2022, the European Commission and UK Competition and Markets Authority (CMA) conducted inspections at the premises of, and sent out formal requests
for information to, several companies and associations active in the automotive sector. The investigations concern possible infringements in relation to the collection,
treatment and recover y of end-of-life cars and vans which are considered waste (ELVs). We understand the scope of the investigations will involve determining
whether manufacturers and impor ters of cars and vans coordinated (i) the compensation of ELV collection, treatment, and recover y companies, and (ii) the use of
data relating to the recyclability or recoverability of ELVs in adver tising materials, and whether such conduct amounts to an infringement of relevant competition
laws. No Group company was the subject of inspections but since that time JLR has received requests for information and is cooperating with the European
Commission and CMA. The inspections and requests for information are preliminar y investigator y steps and do not prejudge the outcome of the investigations. If an
infringement is established, there are a range of possible remedies, including a f ine and/or the prohibition of cer tain business practices. Given that the investigations
are at an early stage, it is dif f icult to predict the outcome or what remedies, if any, may be required.

A n n ua l Re p o r t 2022/23 47
O P E R AT I O N A L CONSEQUENCES MANAGEMENT OF RISK

Supply chain disruptions Supply chain disruptions, if not Over the last 12 months the creation of the Industrial
managed, could have an adverse Operations division (encompassing Procurement,
JLR’s ability to supply components to our manufacturing effect on production volume, revenue Manufacturing and Supply Chain) has helped develop an
operations at the required time is of paramount importance and profitability, client satisfaction effective risk management framework. Teams and suppliers
in achieving production schedules and meeting consumer and reputation within the regions in are actively engaged across our value chain to identify and
demand. The Covid-19 pandemic and constraints in the which we operate. In addition to the mitigate potential disruptions. Our Secure23 and Secure24
automotive semiconductor market continue to have an disruption caused by the pandemic, programmes are ensuring we confirm the semiconductor
impact on our global supply chain. Further uncertainty has continued supply constraints of allocation and supply we need for future vehicle production.
been created by the Russian invasion of Ukraine. This war has semiconductors has impacted many The successful Refocus transformation programme has now
triggered an energy crisis in Europe due to Russia’s restriction industries including automotive. The been extended, with an increased focus on long term supply
of gas supply resulting in severe cost implications to our supply Russian invasion of Ukraine has had chain resilience and transformation to achieve this.
base and the potential for power outages. An increase in the a significant impact on the global
frequency of extreme weather events (e.g. storms, floods, economy. Higher inflation caused by
heatwaves) could also result in significant direct and indirect the scarcity and rising cost of raw
impacts to suppliers and disruption to logistics that increase materials, commodities, energy and
production costs and lead times. An increasing demand transport is impacting the production.
for electric vehicles is also leading to price pressures and
availability of raw materials within the supply base.

Information Security As data and digitisation continue Information security is an enabling function within JLR.
to advance within JLR and our Through a cohesive programme of initiatives, we mitigate
Information-centric digital transformation is at the heart of products and services, protecting our significant business risks while positively influencing
JLR’s Reimagine vision and strategy. Embracing new ways information assets and maintaining business and brand value, growth, stability, and overall
of working with focus on product development velocity and secure information services are critical success.
efficiency in industrial operations, is intrinsic to accelerate enterprise enablers for the benefit
returns in service to value creation for our clients, colleagues, of our clients and JLR’s resilience. Our programme is committed to our Creators’ Code
business and brands. Information security aims to manage - Customer Love, Integrity, Impact, Unity and Growth –
business risks that could harm the achieved through driving business risk reduction with
As our industry becomes more information-enabled and organisation’s strategic objectives. optimised execution and delivering secure, safe, trustworthy
powered by technology, information security becomes crucial The business risk impacts can be interconnected experiences for our clients.
for the benefit of our clients and JLR’s profitable sustainability. categorised into 4 main areas at a
macro level:

• Strategic Risk - Loss/theft of IP

leading to long-term value loss
• Operational Risk - A severe
ransomware could result in
business disruption and loss of
revenue
• Financial Risk - Breach of
compliance could lead to major
fines and operational sanctions
being imposed
• Reputational Risk - Negative
media publicity resulting in loss of
clients and long-term customer
trust impact

Client Service delivery Inconsistent client experience impacts Market demand is monitored daily to optimise vehicle and
our ability to attract and retain parts and accessory deliveries for our retailers and clients.
To deliver a modern luxury client experience and optimise clients, and impacts overall customer Online channels are being enhanced and simplified to
our sales and service channels, every client must receive a satisfaction. Failure to deliver an optimise the client online experience. retailer systems and
seamless and consistent hassle-free experience provided on exceptional experience through our tools are being enhanced, supporting retailer sales, service
their terms. We must know who our clients are, anticipate their online and physical retailer channels and technician representatives to deliver a seamless and
needs and respect their privacy on their terms. Clients must be will lead to a weakening in our consistent hassle-free client experience. Furthermore,
delighted at every step. Our retailer partners reflect our brand competitive positioning, potentially other digital solutions continue to evolve (e.g., FOTA -
strategy and vision, and must effectively communicate our impacting our business and financial Features Over The Air services now in development) to help
values, with trained and capable representatives, to continue performance as a result. strengthen the relationship with our retailers and support
successfully to attract and retain clients, driving high client delivery of a modern luxury experience to our clients.
satisfaction at every touch point.

A n n ua l Re p o r t 2022/23 48
O P E R AT I O N A L CONSEQUENCES MANAGEMENT OF RISK

Manufacturing operations Any disruptions to our manufacturing Manufacturing works closely with the Purchasing and
operations and losses in vehicle Supply Chain functions to monitor and manage suppliers
Manufacturing operations are at the heart of JLR’s value chain, production result in delays to both that pose part supply risks. We have embedded new data
and any losses to scheduled production will have a detrimen- retailer and client delivery, and analytics tools and processes to identify and manage
tal effect on both financial performance, client delivery and potential delays or loss of revenue in suppliers in high risk regions and apply safety stock where
satisfaction. Semi-Conductor constraints have increased our key regions including China, through feasible. Multiple response measures were implemented to
production continuity risk exposure and we continue to closely loss of sales. ensure our sites were Covid-19 safe working environments
monitor the supply base and supply chain efficacy. There are – phased de-escalation approach was adopted across
ongoing threats to our cyber security and significant energy our sites and the situation is now being closely monitored.
costs and supply shortages have continued to increase year- A joint approach was established with manufacturing
on-year. In addition, recognition of the potential for increased operations, employee relations and JLR human resources
frequency of extreme climate events such as flooding could with our Lead Logisitics Provider to improve supplier / trade
result in damage to JLR’s assets and disruption of operations. union relationship to minimise risk of industrial action. There
is an ongoing programme of Server Estates protection
and proposals for replacement of Legacy IT Systems and
Equipment to reduce threats to our Cyber Security. Delivery
of energy consumption and carbon reduction glidepath
implementation is in progress in line with SBTi 2030 and Net
Zero 2039 commitments.

Human capital If we fail to attract, retain, engage A key aspect of the Refocus transformation programme
and develop a diverse workforce with is to develop an agile, capable organisation and culture
Our business requires an engaged workforce with core critical skills and capabilities our ability through changes to ways of working and the embedding of
capabilities in new and emerging skill areas and a collaborative, to deliver innovative products and our business purpose and supporting behaviours. Lever-
innovative and inclusive culture for our transformation to be services will be constrained and we will aging our digital capability and solutions through Digital
successful. The safety, wellbeing and engagement of our be prevented from deploying the agility enables a more efficient, focused and productive workforce.
employees is paramount and needs to be maintained in the and speed of delivery that is essen- Our diversity and inclusion strategy will make the most of
face of a challenging external environment and through the tial within the dynamic automotive the uniting power of our differences and the unique qualities
transformation of our organisation. industry. that each of our workforce brings.

A n n ua l Re p o r t 2022/23 49
INTRO D U CTI O N TO GOV ERNAN CE

S TAT E M E N T O F C O R P O R AT E G O V E R N A N C E Principle 6 - Stakeholders, on page 61), but also having regard to how the
ARRANGEMENT the Company’s Board of Directors ensures the Group complies with the
requirements of Section 172 (1)(a) to (f) of the Companies Act 2006. Our
For the year ended 31 March 2023, under the Companies (Miscellaneous reporting against the Wates Principles has been included below.
Reporting) Regulations 2018, the Group has continued to apply the
Wates Corporate Governance Principles for Large Private Companies During 2023 the Group has built its ESG transformation strategy to
(‘Wates Principles’) (published by the Financial Reporting Council (‘FRC’) ensure the complexity of achieving net zero targets is achievable whilst
in December 2019 and are available on the FRC website). The following managing its associated risks. See pages 23-43.
section summarises how the Group has applied the principles over the
past year. As the Group continues to grow, adapt and embrace the changes to
support long term strategy and support of Reimagine and Refocus, these
The Group remains committed to ensuring effective governance is in place programmes have evolved with the next stage of our transformation
to deliver its core values, as this is the foundation on which it manages and being Refocus 2.0. Refocus 2.0 is our enterprise-wide approach to deliver
controls its business and provides the platform for sustainable profitability. business excellence through value creation, aiding simplification of our
operating framework and governance. See page 10. The JLRL Board
S E C T I O N 1 7 2 C O M PA N I E S A C T 2 0 0 6 Members have welcomed Barbara Bergmeier as Executive Director of
Industrial Operations to transform our global purchasing, supply chain
The Wates Principles provides a framework for the Group to not only and manufacturing functions and Thomas Müller as our new Executive
demonstrate how the Company’s Board of Directors makes decisions Director of Product Engineering.
for the long term success of the Company and its stakeholders (see

A n n ua l Re p o r t 2022/23 50
SECTION 172 DECISIONS
a) The likely consequences of The Company’s Board of Directors annually approves the Business Plan and monitors its implementation throughout the year.
any decision in the long term
They are the most senior executive forum within JLR, responsible for directing the development of the strategy and providing the ultimate
point of decision for topics that will drive the business to a sustainable future. They are empowered to make decisions on the product port-
folio, services and the allocation and development of resources. Their decisions can additionally ensure that steps are taken to implement
appropriate financial stewardship, effective risk management and the continued performance of the Group.

External factors are also considered such as economic, political and ongoing challenges within the market as a part of the five-year plan to
ensure both financial and operating strategy is set at sustaining and achieving the long term success of the Group.

To further enhance and support the long term strategy, the Group entered into a number of debt funding arrangements during the financial
year.

See page 21
b) The interests of the At JLR, we are passionate about our people. They are at the heart of our business. We are committed to fostering a diverse, inclusive culture
Company’s employees that is representative of the society in which we live; a culture in which every one of our employees can bring their authentic self to work
and reach their full potential.

As part of the Business Plan we aim to:

•shape a culture of unity, belonging, inclusion and respect;
•implement progressive policies, benefits and support; and
•engage our employees to accelerate our progress.

The Company’s Board of Directors understand the importance of the Group’s employees to the long-term success of the business. The
Group regularly communicates to its employees through presentations, internal group-wide emails and newsletters.

A pulse survey undertaken annually allows employees to formally provide feedback to further support the long term plans of the Group in
addition to informal feedback sessions held during the year with various Executive Directors.

Learning and development continues to be an important area of support to employees through both training days and e-learning modules.
Internal networks to support wellbeing have been established to provide and create communities to discuss and share support on mental
health, general wellbeing and advice on the coronavirus outbreak.

We proudly support the growing number of active diversity and inclusion employee-led networks both in the UK and Overseas. These in-
clude Pride, REACH, Armed Forces, Gender Equality, Shine, Disability and a number of religious groups.

See pages 34-36

c) The need to foster The Company’s Board of Directors understand the importance of the Group’s supply chain in delivering the long-term plans of the Group.
the company’s business The Group’s principal risks (see page 46) and uncertainties set out risks that can impact the long-term success of the Group and how these
relationships with suppliers, risks interact with our stakeholders. Our suppliers of production and non-production goods and services play an integral role in our business
clients and others and help us to operate globally. For example, we have engaged in strategic discussions with key component suppliers and chip producers to
secure long-term supply agreements for future product programmes, to increase our resilience. The Group has key objectives and principles
which are set out clearly in the Global Supplier Management policy. Ensuring this policy is followed to achieve consistent and best practice
in our relationships with our suppliers, in addition to ensuring ethical behaviour, sustainability and health and safety is considered critical to
the success of our business relationships.

The Company’s Board of Directors actively seek information on the interaction with stakeholders and employees to ensure that they have
sufficient information to reach appropriate conclusions about the risks faced by the Group. An example of such interaction includes the
Company’s Board of Directors monitoring the Group’s engagement with their clients through the use of various Customer Experience Insight
tools which helps collate feedback from time of vehicle purchase onwards. This process is run internally and enables both the Group and re-
tailers globally to help improve client engagement. Other regular client feedback mechanisms exist through a variety of syndicated surveys
to provide and offer external and independent feedback.
d) The impact of the company’s Information on the Group’s initiatives and commitment to ESG and approach to sustainability can be found on pages 23-33.
operations on the community
and environment The Company’s Board of Directors set strategies and as part of their corporate decision making have regard to ensuring dialogue and
safeguarding is in place with investors, stakeholders and employees, thereby effecting a positive social and environmental impact. This is
demonstrated through the Group’s financial and non-financial reporting. Please also see page 30 for further information.

The key governance issues around conflicts of interest, oversight, accountability, transparency and ethics violations are considered to be a
critical and core aspect to the Group’s ESG approach.

See pages 39-43 for further details.

e) The desirability of the At JLR we are passionate about our people. We are committed to fostering a more diverse, inclusive and unified culture that is representa-
company maintaining a tive of our clients and the society in which we live; a culture where every one of our employees can bring their authentic self to work
reputation for high standards and feel empowered to reach their full potential.
of business conduct
Directors and employees are required to comply with the Jaguar Land Rover Code of Conduct, which is intended to help them put the
Group’s ethical principles into practice to demonstrate responsible business. The Code of Conduct clarifies the basic principles and stand-
ards they are required to follow and the behaviour expected of them.

Policies can be found on the Group’s website.

f) The need to act fairly as The Group is ultimately owned by Tata Motors Limited (“TML”) and collectively are committed to continuing to build future growth through
between members of the new models through a roadmap that provides a clear direction for the business and our two brands.
company
There is close collaboration and knowledge-sharing with Tata Group companies to enhance sustainability and reduce emissions as well as
sharing best practice in next-generation technology, data and software development leadership

A n n ua l Re p o r t 2022/23 51
WAT E S P R I N C I P L E 1 – P U R P O S E A N D L E A D E R S H I P The Company’s Board of Directors continues to proactively consider the
impact to the Group as a response to a variety of factors. New electric
The Company’s Board of Directors rigorously challenges strategy, model development is on track, with work to transform our UK plants
performance, responsibility and accountability so that every decision for next generation of pure-electric vehicles underway. Refocus 1.0
made is of the highest quality. transformation programme has delivered £1.1 billion of savings this
financial year. Reimagined pure-electric Jaguar models, launching in 2025,
The Company’s Board of Directors actively ensures through committee will be built in Solihull alongside pure-electric Range Rovers, heralding
meetings and careful consideration of all economic, geopolitical and an exciting new era of electric car production in the UK. All factors are
environmental factors that the appropriate strategy and decisions are considered and discussed carefully whilst considering demand and
made. impact on business plan.

The Company’s Board of Directors has continued to build on the This Corporate Governance Report includes further information about
ReImagine and Refocus transformation programme delivering new the Company’s Board of Directors, areas of focus, and the structure and
strategic partnerships and savings to strengthen the Group’s strategic role of its committees.
vision. Refocus 2.0 seeks to build on the strong foundations of these
existing programmes to deliver business excellence, see page 10. Details of individual directors’ attendance of FY23 Company’s Board of
Directors meetings are shown in the following table:

Maximum no. of Board Meetings No. of Board Percentage of JLRA plc Board
NAME OF DIRECTOR
director could attend Meetings director attended Meetings attended

Chief Executive Officer and Executive Director

Thierry Bolloré** 6 6 100

Adrian Mardell* 3 3 100

Non-Executive Director

Natarajan Chandrasekaran (Chairman) 8 8 100

Pathamadai Balaji 8 8 100

Nasser Mukhtar Munjee*** 1 1 100

Charles Nichols 8 7 87.5

Al-Noor Ramji 8 7 87.5

Andrew Robb*** 1 1 100

Hanne Sorensen 8 7 87.5

Prof. Sir Ralf Speth (Vice Chairman) 8 7 87.5

*appointed CEO 16 November 2022

** resigned 31 December 2022

*** resigned 30 June 2022

WAT E S P R I N C I P L E 2 - B O A R D C O M P O S I T I O N The Company’s Board of Directors continues to work on creating a

more diverse board of directors and recognises this as a challenge in
We continuously evaluate the balance of skills, experience, knowledge and the automotive sector. There are strategies in place which encourage
independence of the Group’s directors. The Company’s Board of Directors diversity throughout the workplace with opportunities for employees to
comprises a separate Chairman and Chief Executive Officer to ensure progress to senior levels.
that the balance of responsibilities, accountabilities and decision making
across the Group are effectively maintained. The size and composition of Barbara Bergmeier as Executive Director of Industrial Operations
the Company’s Board of Directors is considered to be appropriate with all joined JLRL Board to transform our global purchasing, supply chain
members contributing to a wide variety of experience. and manufacturing functions and Thomas Müller as our new Executive
Director of Product Engineering.

A n n ua l Re p o r t 2022/23 52
LEADERSHIP

JAGUAR L AND ROVER AUTOMOTIVE PLC BOARD

N ATA R A J A N PAT H A M A D A I ADRIAN CHARLES NICHOLS

CHANDRASEKARAN BALACHANDRAN MARDELL NON-EXECUTIVE
NON-EXECUTIVE BALAJI INTERIM CHIEF DIRECTOR
DIRECTOR NON-EXECUTIVE EXECUTIVE OFFICER
AND CHAIRMAN DIRECTOR

Appointed February 2017 Appointed December 2017 Appointed November 2022 Appointed January 2022

A L- N O O R R A M J I HANNE SORENSEN PROF SIR RALF D SPETH

NON-EXECUTIVE NON-EXECUTIVE KBE FREng FRS
DIRECTOR DIRECTOR NON-EXECUTIVE VICE
CHAIRMAN

Appointed January 2022 Appointed August 2018 Appointed February 2010

NASSER ANDREW M. ROBB

THIERRY BOLLORÉ
M U K H TA R M U N J E E NON-EXECUTIVE
CHIEF EXECUTIVE OFFICER
NON-EXECUTIVE DIRECTOR
DIRECTOR

Appointed September 2020 Appointed February 2012 Appointed April 2009

Director resigned December 2022 Director resigned June 2022 Director resigned June 2022

A n n ua l Re p o r t 2022/23 53
JAGUAR L AND ROVER LIMITED BOARD OF DIRECTORS

ADRIAN MARDELL BARBARA BERGMEIER NIGEL BLENKINSOP NICK COLLINS

INTERIM CHIEF EXECUTIVE DIRECTOR, EXECUTIVE DIRECTOR, EXECUTIVE DIRECTOR,
EXECUTIVE OFFICER I N D U S T R I A L O P E R AT I O N S C O M PA N Y Q U A L I T Y & VEHICLE PROGRAMMES
C U S T O M E R S AT I S FA C T I O N

FRANÇOIS DOSSA LENNARD HOORNIK HANNO KIRNER PROFESSOR GERRY

EXECUTIVE DIRECTOR, CHIEF COMMERCIAL EXECUTIVE DIRECTOR, MCGOVERN OBE
S T R AT E G Y & OFFICER J L R & TATA G R O U P C H I E F C R E AT I V E O F F I C E R
S U S TA I N A B I L I T Y B AT T E R Y P R O G R A M M E S

R I C H A R D M O LY N E U X THOMAS MÜLLER Q I N G PA N HANNE SORENSEN

ACTING CHIEF EXECUTIVE DIRECTOR, PRESIDENT & CEO, NON-EXECUTIVE
FINANCIAL OFFICER PRODUCT ENGINEERING JLR CHINA DIRECTOR

D AV E W I L L I A M S
EXECUTIVE DIRECTOR,
HUMAN RESOURCES

A n n ua l Re p o r t 2022/23 54
WAT E S P R I N C I P L E 3 – D I R E C T O R
RESPONSIBILITIES
In this section, you will find information about the induction and
Effective risk management is central to achieving the Group’s strategic development of directors across the Group, as well as the key
objectives and is a core responsibility of the Company’s Board of Directors considerations when measuring the effectiveness of the Company’s
and its committees. In this section, you will find information about the Board of Directors and its committees.
responsibilities and focus of the various committees within the Group.
Good governance is achieved through effective committees tackling core
areas of focus on a regular basis. See pages 58-59 for further information.

JAGUAR L AND ROVER AUTOMOTIVE PLC BOARD OF DIRECTORS

The Company’s Board of Directors provides supervision and guidance to the Group’s management, particularly with respect to corporate governance,
business strategies and growth plans. It also considers the identification of risks and their mitigation strategies, entry into new businesses, product
launches, demand fulfilment and capital expenditure requirements, as well as the review of business plans and targets.

For more information see pages 58-59

AUDIT COMMITTEE N O M I N AT I O N S & TECHNOLOGY COMPLIANCE

R E M U N E R AT I O N COMMITTEE COMMITTEE
Reviews the integrity of COMMITTEE
the financial statements, The Committee was formed Provides oversight of JLR’s
relationship with the Determines the overall in September 2022. The management to review and
external auditors and remuneration policy scope of the Committee is to assess its various compliance
effectiveness of internal and strategy to ensure have oversight and provide risks. Oversees and assesses
financial controls. transparency and alignment clarity in respect of the appropriateness of the
with the Group’s short and technology strategy of the adequacy, effectiveness and
For more information see long-term strategic goals. JLR group of companies. maturity of the many
page 58-59 compliance programmes.
For more information
see page 60

JAGUAR L AND ROVER LIMITED BOARD OF DIRECTORS

The work of the JLRL Board executes the strategy and ensures the governance principles agreed with the Company’s Board of Directors,
with JLRL Board operating under the direction and authority of the Chief Executive Officer to support in the execution of the Group’s strategy,
including evaluating the Group’s performance against budget and forecast.

The JLRL Board is also responsible for overseeing the implementation of appropriate risk assessment processes and controls to identify, manage
and mitigate the principal risks to the Group, and in doing so, provide support to the boards of directors of other Group companies.

DISCLOSURE COMMITTEE OTHER EXAMPLES OF

MANAGEMENT COMMITTEES:
Supports the Company’s Board of Directors and Audit Committee
in reviewing and approving the final form of quarterly and annual • Risk Management Committee
statements relating to the performance of the Group. • Product Committee
• Health and Safety Committee
For more information • Security Committee
see page 59 • Unusual Events Committee
• Financial Risk and Assurance Committee
• Financial Risk Committee

A n n ua l Re p o r t 2022/23 55
TOPIC / ACTIVITY ACTIONS PROGRESS

S T R AT E G Y
Review of the business Analysed the automotive industry trends and retail Strategic partnership with Wolfspeed was established, securing supply for silicon carbide
and operating model outlook and assessed the potential impact on the semiconductor technology for inverters
Group
New electric model development is on track, with work to transform our UK plants for next
Reviewed the Group’s performance against its generation of pure-electric models underway
competitors
Final F-TYPE edition launched during FY23, marking 75 years of iconic Jaguar sports cars,
before Jaguar becomes a pure-electric modern luxury brand from 2025

Monitoring opportunities Supported continued investment to promote sus- Reimagine transformation continues with strong demand with the three most profitable
for acquisitions and new tainable business growth over the long term models, the New Range Rover, New Range Rover Sport and Defender accounting for over 76
revenue streams per cent of the order book at 31 March 2023.
Used cash to implement ongoing programmes to
support business growth Reimagine pure-electric Jaguar models, launching in 2025, will be built in Solihull alongside
pure-electric Range Rovers
Reviewed and approved, where appropriate, the
business cases for internally developed future This has further been bolstered by Refocus which further drives quality, financial growth,
business sustainability and digitalisation

Discussion of the Group’s Considered and approved the Group’s debt funding Refocus 1.0 transformation programme has delivered £1.1 billion of savings this financial year
capital structure and arrangements
financial strategy Undrawn £1.5 billion unsecured revolving credit facility extended to April 2026 and extension
Ongoing commitment to reducing net debt, target- to £0.6 billion equivalent China bank loan maturing June 2023 signed
ing net cash from FY25
Repayment of £400 million and €500 million bonds was made during the final quarter of
Reviewed a number of opportunities in the fiscal FY23. $200 million of syndicated loan was repaid in October 2022 and £250 million of amor-
year tising UKEF loans were repaid during the financial year,

RISK MANAGEMENT AND INTERNAL CONTROL

Review the Group’s Clearly articulated the Group’s approach to risk and Agreed Group-level risks and a robust set of mitigating activities, which are regularly
principal risks and the internal control monitored and considered movements in key risks resulting from changes to likelihood or
effectiveness of internal business impact
control systems and risk Reviewed and updated approach to identify and
management management principal risks and potential weak- Continued reporting to ensure deficiencies and weaknesses are highlighted and addressed
nesses and deficiencies in the design or operation of efficiently
the Group’s internal controls

Continuing assessment of significant and emerging

risks and impact on the Group’s internal control
framework

LEADERSHIP AND PEOPLE

Review composition of Discussed and evaluated the composition of the The Company’s Board of Directors and Senior Director’s Forum is in place and continually
the Company’s Board Company’s Board of Directors and its committees, evaluated.
of Directors and its including succession planning
committees

Review the Ongoing commitment to maintain a balance of Strategies have been implemented to encourage diversity throughout the workplace with op-
development of appropriate skills and experience in the workforce portunities for employees to progress to senior levels. Further information relating to some of
people and talent in across the Group these initiatives are set out on pages 34 and 35. These actions have enabled us to strengthen
the Group, including succession planning and the skillset of the workforce across the Group.
succession planning
for senior roles
Discuss the results Conducted a thorough review of Pulse surveys to Continued focus on engagement and development of employees through offering a wide
of the employee identify areas for improvement range of training courses
engagement survey
and devise strategic Encouraged employees across the Group to Implementing and taking action based on feedback received from employees has resulted in
actions arising from it propose actions to address any identified areas of better support for health and wellbeing through the development of a wellbeing website. In
improvement. addition the introduction of a “Your JLR” app to improve communications and feedback has
driven a more inclusive environment.

A n n ua l Re p o r t 2022/23 56
TOPIC / ACTIVITY ACTIONS PROGRESS

S T R AT E G Y

G O V E R N A N C E , S TA K E H O L D E R S A N D S H A R E H O L D E R S
Review the Group’s Considered sustainability, including the Group’s im- Reviewed developments in corporate governance and considered key legal and regulatory
purpose, goal, vision pact on the community and the environment updates
and values
Monitored and addressed regular Health and Safety Review of the five year business plan and monitoring of corporate scorecards which are
updates continuously assessed to ensure the Group’s vision and goal to drive strategy and business
initiatives is achieved

Encourage strong Actively supported engagement opportunities Ongoing discussions at all levels of the business with shareholders
engagement with
investors and Regularly reviewed and acted upon feedback from Engagement with other stakeholders based on feedback
stakeholders key stakeholders
There is regular dialogue with our bond investors and relationship banks including an annual
capital markets day where investors, banks and other credit providers have the opportunity to
meet with JLR senior management.

Further information relating to our existing and future relationships with shareholders, cus-
tomers, suppliers and our communication and dialogue with our stakeholder groups is set out
on page 51 and 62.

FINANCIAL PERFORMANCE
Assessment of the Evaluated the Group’s performance against budget Reviewed and approved the latest five-year business plan for the Group
Group’s financial and forecast
performance Approved the Annual Report
Reviewed the quarterly and annual results and
associated presentations to investors

A n n ua l Re p o r t 2022/23 57
EFFECTIVENESS

T H E C O M PA N Y ’ S B O A R D O F D I R E C TO R S E VA L U AT I O N

The Company’s Board of Directors will continue to consider the core areas The Company’s Board of Directors continuously assesses its effectiveness
described previously, but in particular will focus on: in the following areas:

• Continued development of the Group’s product pipeline through • The flow and quality of information to and from the Company’s Board of
Reimagine, Refocus and Refocus 2.0 to provide all nameplates in electric Directors to ensure effective communication;
form by end of the decade, thereby seeking to capitalise on segment
growth (including advanced driver assistance systems and autonomous • Decision-making process and culture;
cars with a partnership with NVIDIA);
• The outcome and impact of decisions made by the Company’s Board of
• Shortage of industry-wide semiconductor chips which have during Directors; and
the year constrained sales though strong demand remains for vehicles.
A strategic partnership is in place with our Jaguar TCS Racing partner • The Company’s Board of Directors and committees also provide direct
Wolfspeed, to secure supply of Silicon Carbide semiconductors; feedback to management committees during the year.

• Ongoing aim to achieve zero carbon emissions across supply chains, C O M M I T T E E S S U P P O R T I N G A C C O U N TA B I L I T Y

products and operations by 2039 through Planet Regenerate initiative to
ensure future sustainability; AUDIT COMMITTEE

• Consideration of the evolving economic, political and market conditions; Composition of the Audit Committee

• Developing people and the workforce of tomorrow; and Charles Nichols, Chairman
P. B. Balaji
• Ongoing review and monitoring of external risk factors such as inflation, Hanne Sørensen
rising energy costs, ongoing effects of Covid-19 and geopolitical instability; Andrew Robb (resigned 30 June 2022)
considering their impact on the future of the Group in light of upcoming Nasser Munjee (resigned 30 June 2022)
changes in both the political and economic environment.
Role of the Audit Committee
HOW WE DIVIDE UP OUR RESPONSBIILITIES
• Monitors the integrity of the financial statements, including the review
Chairman of the Company’s Board of Directors of significant financial reporting issues and judgements alongside the
Responsible for leading the Company’s Board of Directors, its effectiveness findings of the external auditor.
and governance. Also sets the agenda to take full account of the issues
and concerns of the directors and ensures effective links between external • Oversees the relationship with the external auditor, external audit
stakeholders, the Company’s Board of Directors and management. process, nature and scope of the external audit and the appointment,
effectiveness, independence and fees of the external auditor.
Non-executive directors
Constructively challenge the Chief Executive Officer and monitor the • Monitors and reviews the effectiveness of Corporate Audit, ensuring
delivery of the Group’s strategy within the risk and controls environment coordination with the activities of the external auditor.
set by the Company’s Board of Directors.
• Reviews the effectiveness of the Group’s systems for internal financial
Chief Executive Officer control, financial reporting and risk management.
Responsible for the day-to-day leadership, management and control of
the Group, recommending the Group strategy to the Company’s Board MAIN ACTIVITIES OF THE AUDIT COMMITTEE
of Directors, and implementing the Group’s strategy and decisions of the DURING THE YEAR
Company’s Board of Directors.
Financial reporting
INDUCTION, DEVELOPMENT AND SUPPORT
During the year, the Audit Committee met with the external auditor and
All new directors receive a full, formal and tailored induction upon joining management as part of the FY2022/23 annual and quarterly reporting
the Company’s Board of Directors. The Company’s Board of Directors approval process a total of five times. The Audit Committee reviewed
calendar is also planned to enable directors to visit the increasing number the draft financial statements and considered a number of supporting
of Jaguar Land Rover geographic locations. Directors are briefed on a papers. This included reviewing information presented by management
wide range of topics throughout the year. on significant accounting judgements to ensure all issues raised were
properly dealt with; reviewing presentation and disclosure of material to
These topics range from those with particular relevance to the business ensure adequacy, clarity and completeness; reviewing the documentation
of the Group, such as global automotive demand, to more general prepared to support the going concern statement given on page 69; and
matters such as developments in corporate governance. We recognise reviewing external audit reports. The key matters considered in the year
that our directors have a range of experience, and so we encourage them were: Impairment of property plant and equipment, intangible, and right-
to attend external seminars and briefings that will assist them individually. of use non-current assets, impairment of long life assets, going concern,
capitalisation of product engineering costs and valuation of defined
benefit plan obligations.

A n n ua l Re p o r t 2022/23 58
Internal controls that KPMG should only be engaged for non-audit services where there is
an obvious and compelling reason to do so (for example, their skills and
The Audit Committee reviewed the effectiveness of financial reporting, experience or ability to provide the services) and provided such work does
internal control over financial reporting and risk management procedures not impair their independence or objectivity and has no impact on the
within the Group, with particular regard given to compliance with audited financial statements. It prohibits KPMG from providing certain
the provisions of section 404 of the Sarbanes-Oxley Act and other services, including legal, valuation, actuarial and internal audit. The Audit
relevant regulations. The reviews also considered any potential material Committee approves all non-audit services before they are performed.
weaknesses or significant deficiencies in the design or operation of the Non-audit fees paid to KPMG in the year totalled £0.5 million (2022: £1.1
Group’s internal control over financial reporting, which are reasonably million), representing 7 per cent of the total fees paid for audit and audit
likely to adversely affect the Group’s ability to record, process and report related assurance services.
financial data, including that of systems controls. The Audit Committee
received reports from the external auditor, Business Assurance and Corporate Audit
Corporate Audit with respect to these matters.
During the year, the Audit Committee reviewed the adequacy of the
External Audit Corporate Audit function, the Corporate Audit charter, staffing and
seniority of the official heading the function, reporting structure, budget,
The Audit Committee reviewed the significant audit issues affecting coverage and the frequency of corporate audits, the structure of
the Group with the external auditor and how they have been addressed Corporate Audit and approval of the audit plan.
in the financial statements. The Audit Committee also evaluated the
external auditor by reviewing the firm’s independence, its internal quality DISCLOSURE COMMITTEE
control procedures and any material issues raised by the most recent
quality control or peer review of audit firms. This included the findings of Composition of the Disclosure Committee:
any enquiry or investigation carried out by government or professional
bodies with respect to one or more independent audits performed by the Chief Financial Officer and his direct reports.
external auditor within the last five years.
Matters considered during the year
KPMG, the external auditors, have completed their fifth year in post. • Reviewed and updated the terms of reference of the Disclosure
Section 139(2) of the Indian Companies Act, 2013, mandates that all listed Committee;
companies rotate their auditors once the auditor has served as an auditor
for a period of 10 or more consecutive years. Under these regulations, the • Reviewed the audit and control findings from the external auditor;
Group will be required to retender the audit by no later than 2027 and the
Committee will keep the external auditor tender under review and act in • Reviewed areas of key management judgement and significant
accordance with any changes in regulations and best practice relating to transactions, including their presentation and disclosure in both the
the tenure of the external auditor. quarterly and annual financial statements;

To help safeguard KPMG’s objectivity, independence and effectiveness, the • Reviewed new disclosures in both the quarterly and annual financial
Group has a non-audit services policy which sets out the circumstances statements for appropriateness; and
and financial limits within which the external auditor may be permitted
to provide certain non-audit services. This policy sets a presumption • Considered the impact of new accounting standards on the Group.

A n n ua l Re p o r t 2022/23 59
A C C O U N TA B I L I T Y

WAT E S P R I N C I P L E 4 - O P P O R T U N I T Y A N D R I S K Remuneration policy

The remuneration policy is designed to attract, retain and motivate
In addition to the matters referred to throughout this report on risk executives of the highest quality, encouraging them to deliver exceptional
management, please also refer to page 46 to 49 which include a list of all business performance aligned to JLR’s strategy and the objective of
emerging and principal risks including mitigations relevant to the Group. delivering long-term sustainable growth. Its structure and individual
remuneration elements align with the design of the Company’s
See pages 46-49 for assessment and categorisation of principal risks and remuneration policy for the wider organisation. Any decisions the
actions to mitigate. Nominations and Remuneration Committee makes in relation to executive
remuneration will be made with clear understanding of the developments
WAT E S P R I N C I P L E 5 - R E M U N E R AT I O N to pay and conditions for the wider workforce.

In accordance with Wates Principle 5, the Nominations and Remuneration Executive remuneration consists of:
Committee Company’s Board of Directors ensures that appropriate
senior management is recruited to deliver on the Group’s objectives. The Fixed elements:
Nominations and Remuneration Committee has clearly defined Terms of
Reference and is responsible for remuneration strategy, recruitment and • Salary. Designed to recruit and retain individuals with the necessary
long term incentive plans for senior executives. knowledge, skills and experience to deliver the Group’s strategic
objectives. Salary is reviewed annually and benchmarked against
N O M I N AT I O N S A N D R E M U N E R AT I O N C O M M I T T E E comparable roles in appropriate comparator groups.
• Retirement benefits. The Group has a number of defined benefit
Composition of the Nominations and Remuneration Committee: pension schemes that are closed to new employees as well as an
active defined contribution scheme. All of the current Executives
Andrew Robb, Chairman (until 30/06/2022) have elected to receive a cash allowance in lieu of retirement benefits.
The cash allowance is at the same level as the equivalent defined
Hanne Sorensen, Chairman (from 1/07/2022) contribution provision.
• Other benefits. Executives are eligible to participate in the Group’s
Natarajan Chandrasekaran management car programme, medical arrangements, and life
insurance and disability plans.
In addition to the Committee members, the Chief Executive Officer is
invited to attend meetings, except where there is a conflict of interest. Performance-related elements:
The Nominations and Remuneration Committee is supported by the
Executive Director, Human Resources and the HR Director, Global Reward • The Global Bonus Plan is an annual bonus plan which focusses on
& Mobility. the Company’s key operational priorities. It rewards achievement of
short-term financial and operational objectives. The metrics for the
Role of the Nominations and Remuneration Committee 2022/23 Financial Year remained unchanged. Each of the metrics has
The Nominations and Remuneration Committee is responsible for an equal weighting.
the structure, appointments, removals, succession, performance and
compensation of the Company’s Board of Directors and the JLRL Board. • The Strategic Bonus Plan, open to JLR’s senior worldwide leadership, is
an annual bonus plan which rewards the progress and transformation
The Committee’s involvement in all aspects of nominations and necessary to achieve the Company’s strategic targets. The metrics
remuneration ensures that all decisions in terms of Board appointments are set annually against a longer-term glidepath which ensures that
are made in a fair, equal and balanced way. they can be adjusted to evolving priorities and external conditions
whilst also providing good governance and accountability for long-
During 2022/23 Andrew Robb retired as Non-Executive Director and term improvements. The plan metrics for Financial Year 2022/23
Chairman of the Nominations and Remuneration Committee after 13 continue to focus on Financial Health, Brand Health and Sustainability
years of service. Andrew was succeeded by Hanne Sorensen with effect and reward the collaborative effort and steps senior leadership make
from 1 July 2022. Hanne had been a member of the Committee since towards implementing the Reimagine strategy and delivering results.
June 2020.
JLR’s public commitment to CO2e reduction targets by 2030, approved
This financial year the Committee further strengthened the JLRL Board, by the Science Based Targets Initiative (SBTI), is reflected in the 2022/23
with the appointments of Thomas Mueller, Executive Director, Product Strategic Bonus plan. This year’s bonus plan rewards for performance
Engineering and Barbara Bergmeier, Executive Director, Industrial against scope 1+2 and scope 3 SBTI targets. The inclusion of these
Operations. Thierry Bolloré’s resignation as JLR’s Chief Executive Officer targets underlines the importance sustainability has in the Company’s
saw the appointment of Adrian Mardell as Interim Chief Executive Officer future strategy.
and Richard Molyneux as Acting Chief Financial Officer in late 2022.

A n n ua l Re p o r t 2022/23 60
E X E C U T I V E R E M U N E R AT I O N 2 0 2 2 / 2 3

There is linkage between JLR business strategy and the performance related elements of remuneration.

33%
25% 25%
17%

S T R AT E G I C
BONUS BONUS
PERFORMANCE PERFORMANCE
MEASURES MEASURES

25% 25%
17%
33%

Client satisfaction Financial Health (Net Debt)

EBIT margin Brand Health (First Preference)

Cash flow Digitalisation (Financial

contribution of Digital Initiatives)
Retail volume
Sustainability (Tailpipe emissions)

The overall objective is to deliver executive pay in line with a market to reflect exceptional business performance. Overall remuneration is
median range for target performance, with enhanced reward opportunity balanced, with the majority linked to business performance.

34%
33%

17%

TA R G E T 33% MAXIMUM
EXECUTIVE EXECUTIVE
R E M U N E R AT I O N R E M U N E R AT I O N
5%

26%

8%
44%

Base salary Base salary

Benefits Benefits

Annual bonus Annual bonus

Strategic bonus Strategic bonus

W AT E S P R I N C I P L E 6 – S TA K E H O L D E R R E L AT I O N S H I P S communicates the Group’s strategic direction. Brand and reputation

AND ENGAGEMENT including existing and future relationships with shareholders, clients,
suppliers, employment interaction and communication with clients and
The Company’s Board of Directors continues to promote accountability suppliers are set out on page 51. Maintaining strong relationships with
and transparency with all stakeholders and shareholders and effectively shareholder and bond investors is crucial to achieving the Group’s aims.

A n n ua l Re p o r t 2022/23 61
I N V E S T O R R E L AT I O N S E N G A G E M E N T

SOLE SHAREHOLDER regular dialogue with our bond investors and relationship banks (some of
whom provide support for loans and other credit facilities) through the
Jaguar Land Rover Automotive plc (and its subsidiaries) is a wholly owned quarterly publication of operational and financial results on the Group’s
subsidiary of TML (held through TML Holdings Pte. Ltd. (Singapore)). website (www.jaguarlandrover. com) supported by live broadcasts. The
Although we operate on a stand-alone, arm’s length basis, we maintain investor relations team also attends various credit conferences held
an open and collaborative strategic relationship with TML and plan to throughout the year and our annual capital markets day where investors,
increase our collaboration in numerous areas going forward. banks and other credit providers have the opportunity to meet with JLR
senior management in person to discuss the Company’s strategy and
BOND INVESTORS, LOAN AND OTHER CREDIT aspirations.
PROVIDERS
C R E D I T R AT I N G A G E N C I E S
As at 31 March 2023, we had approximately £4.1 billion of listed unsecured
bonds outstanding (31 March 2022: £4.7 billion) and £1.9 billion of loans As at 31 March 2023, Jaguar Land Rover Automotive plc had a credit
(31 March 2022: £2.3 billion). The Company also had £0.7 billion of rating of B+ (stable outlook) from S&P (which was revised to BB- from
leases at 31 March 2023 (£0.6 billion at 31 March 2022). We maintain April 2023) and B1 (stable outlook) from Moody’s.

A n n ua l Re p o r t 2022/23 62
J L R ’ S A P P R O A C H T O TA X

INTRODUCTION which has its own tax legislation. Tax law is often complex and subject
to change and interpretation. Recent international tax developments
We are committed to complying with the tax laws and regulations in further add to this complexity. Therefore, a degree of tax uncertainty
the countries in which we operate and have a policy of zero tolerance is inevitable. We partner with the business to provide appropriate and
towards non-compliance. We embrace our Creators Code in all that current tax advice on the implications of business decisions.
we do to curate and enhance our modern luxury client experience and
brand reputation as a responsible taxpayer. Jaguar Land Rover is a global Where local legislation permits, we may seek advance agreement from
business and as such our operations are large and complex. As a result, the relevant tax authority, including advance pricing agreements to
we operate through multiple companies, with activities, employees and ensure that we do not pay tax on the same profits twice. In the event
assets located in numerous countries around the world. This, in turn, of any audit activity or scrutiny, we seek to engage with the relevant tax
naturally drives an inherent level of complexity in our tax affairs. The authorities to provide all relevant information in a transparent and timely
global business is however united in adopting the following key tax manner to resolve any matters efficiently and effectively.
principles which are aligned with our business behaviours.
M A N A G I N G O U R TA X R I S K A N D O U R G O V E R N A N C E
J A G U A R L A N D R O V E R ’ S K E Y TA X P R I N C I P L E S FRAMEWORK

The following core principles have been formally adopted by the Our tax strategy is approved by the JLRA plc Board annually and tax risks
Company’s Board of Directors in relation to our approach to tax matters are reported quarterly to the Financial Risk and Assurance Committee.
and the conduct of our tax affairs. Appropriate accounting and financial oversight is exercised through
the Audit Committee with the Chief Financial Officer having oversight
1. Compliance - We act with integrity, both within the letter and spirit of responsibility on behalf of the Board.
all tax legislation and relevant international standards. We have a zero
tolerance to tax evasion, including the evasion of tax by third parties We maintain a robust risk framework to ensure adherence to these
associated with our business. We ensure that the right amount of tax principles. We achieve this through internal reviews, refreshing our
is paid at the right time in the right country. As a commercially driven policies periodically and seeking external advice wherever required in
organisation, we consider the tax consequences of our decisions, but case of interpretational issue or uncertainty. Our key tax principles are
we do not engage in transactions without commercial substance embedded in roles and responsibilities outlined in our tax charter which is
with the sole purpose of avoiding tax. In making business decisions issued annually across the global business.
we seek to maximise value to our stakeholders. Tax decisions are
driven by core values of integrity, unity and responsibility and planning Responsibility for the day-to-day management of JLR’s tax affairs rests
is driven by commercial rationale. with our central Tax function, comprising an appropriate blend of tax
professionals led by the JLR Tax Director. In addition to the central Tax
2. International tax – We embrace business unity to ensure that function, the business also has dedicated tax professionals embedded
our international tax affairs are aligned and kept current with the within the finance teams of key non-UK subsidiaries. All have the necessary
substance of our business operations in keeping with international tax qualifications, training, skills and experience required to effectively
guidance. We do not engage in any form of artificial tax structuring undertake their roles and ensure that our compliance standards are met.
and we do not operate in or use any offshore tax havens. All Jaguar The Tax function also advises the Company’s Board of Directors in relation
Land Rover subsidiaries are located in countries where the business to setting Group tax strategy and policy.
has significant physical and economic operations. We claim reliefs,
credits, incentives and exemptions that are legislated in the countries Where appropriate, we look to implement technology-based solutions to
in which we operate and have a genuine presence. track compliance, streamline processes, drive efficiency and manage risk
including reviews and escalation where necessary.
3. Relationships with governments and tax authorities and industry
associations where we operate - We seek to maintain trusting, The Company regards this document and its publication as complying
transparent and constructive relationships with tax authorities, with its duty under Para 19(2), Sch 19, FA16.
including HMRC in the UK, and to engage in future tax policy and
legislation to create shared value.
A P P R O VA L O F S T R AT E G I C
4. People – We invest in our people, their continued learning and growth
to deliver on these commitments. Regular updates are provided REPORT
on recent tax related developments through training and focused
sessions. The Strategic Report on pages 3 to 62 was approved by the Jaguar Land
Rover Automotive plc Board and authorised for issue on 1st June and
O U R A P P R O A C H T O TA X R I S K signed on its behalf by:

We maintain a limited appetite for tax risk and continuously strive to limit
tax risks in line with the principles outlined above.

A risk assessment model is applied to assess any significant transaction

ADRIAN MARDELL
to ensure that these principles are adhered to. INTERIM CHIEF EXECUTIVE OFFICER
Jaguar Land Rover Automotive plc
Our business is global and we operate in numerous countries, each of 1st June 2023

A n n ua l Re p o r t 2022/23 63
DIRECTORS’
REPORT
D IRECTO R S’ REP O RT

The directors present their report and the audited consolidated financial Employee information
statements of the Group for the year ended 31 March 2023. Jaguar Land
Rover Automotive plc is a public limited company incorporated under the The average number of employees within the Group is disclosed in
laws of England and Wales. The business address of the directors and note 7 to the consolidated financial statements on page 96. Apart from
senior management of the Group is Banbury Road, Gaydon, CV35 0RR, determining that an individual has the ability to carry out a particular
England, United Kingdom. role, the Group does not discriminate in any way. It endeavours to retain
employees if they become disabled, making reasonable adjustments to
Future developments their role and, if necessary, looking for redeployment opportunities within
the Group. The Group also ensures that training, career development and
Future developments impacting the Group are disclosed in the Strategic promotion opportunities are available to all employees irrespective of
report from page 7. gender, race, age or disability.

Dividends Employee involvement

The Directors proposed no dividend for the year ended 31 March 2023. Details of how the Group involves its employees are contained in the
(For the year ended 31 March 2022 and 2021: £Nil). Strategic report on pages 3 to 62, which are incorporated by reference
into this report.
Directors
Political involvement and contributions
Directors currently serving on the the Company’s Board of Directors are
set out on page 53. The Group respects an employee’s right to use their own time and resources
to participate as individual citizens in political and governmental activities
Directors’ indemnities of their choice. The Group itself operates under legal limitations on its
ability to engage in political activities and, even where there are no legal
The Group has made qualifying third-party indemnity provisions for the restrictions, the Group does not typically make contributions to political
benefit of its directors during the year; these remain in force at the date candidates or political parties, or permit campaigning on its property by
of this report. political candidates (including those who work for the Group) or persons
working on their behalf. There have not been any political donations in any
Material interests in shares of the periods covered by these financial statements.

Jaguar Land Rover Automotive plc is a wholly owned subsidiary of Tata Going concern
Motors Limited, held through TML Holdings Pte. Ltd. (Singapore).
The Group’s business activities, together with the factors likely to affect
Share capital its future development, performance and position, are set out in the
Strategic report. The financial position of the Group, including details
See note 31 to the consolidated financial statements on page 120 for of the Group’s liquidity, available financing facilities and the maturity of
further details. facilities is described on page 116.

Corporate Governance Statement In addition, note 37 to the consolidated financial statements includes the
Group’s objectives, policies and processes for managing its exposures to
The Corporate Governance Statement is set out from page 44 and is interest rate risk, foreign currency risk, credit risk and liquidity risk; and
incorporated by reference into this report. gives details of the Group’s financial instruments and hedging activities.

Branches The Group has assessed the projected cash flows of the Group for the
twelve-month period from the date of authorisation of the financial
The Group has 10 branches that exist and operate outside of the UK, statements (the ‘going concern assessment period’) and has carried out a
based in China and the United Arab Emirates. reverse stress test against this base case to determine the performance
level that would result in a breach of covenants.
Research and development
The base case takes into account the Group’s expectations of improved
The Group is committed to an ongoing programme of expenditure on semiconductor supply, optimisation of production to prioritise the highest
research and development activities as disclosed in note 11 to the margin products along with the expectations relating to prevailing
consolidated financial statements on page 98. economic conditions, including the impact of inflationary pressures
on material costs and environmental, social and governance (“ESG”)
Financial instruments commitments. The reverse stress test scenario models the impact of a
sustained reduction of wholesale volumes over a twelve-month period.
The disclosures required in relation to the use of financial instruments by
the Group, together with details of the Group’s and Company’s treasury Within the going concern assessment period there is a £1 billion minimum
policy and management, are set out in note 37 to the consolidated quarter-end liquidity covenant attached to the Group’s UKEF loans for
financial statements on pages 131 to 145 and in note 54 on pages 158 to the entire period and to the RCF, which was renewed on 16 December
161 of the parent company financial statements. 2022 with a maturity date of April 2026. Details of the scenarios and

A n n ua l Re p o r t 2022/23 65
assumptions used in the assessment as at 31 March 2023 are set out in S TAT E M E N T O F D I R E C T O R S ’ R E S P O N S I B I L I T I E S
note 2 to the consolidated financial statements on page 84. IN RESPECT OF THE ANNUAL REPORT AND THE
F I N A N C I A L S TAT E M E N T S
The Group forecasts sufficient funds to meet its liabilities as they fall due
throughout the going concern assessment period, without breaching any The directors are responsible for preparing the Annual Report and the
relevant covenants nor the need for any mitigating actions, new funding, Group and parent Company financial statements in accordance with
or drawing on its RCF facility and considers the stress test scenario so applicable law and regulations.
remote as to not be plausible. Consequently, the directors consider that
adequate resources exist for the Group and parent company to continue Company law requires the directors to prepare Group and parent Company
operating for the going concern assessment period. Accordingly, the financial statements for each financial year. Under that law they are
directors continue to adopt the going concern basis in preparing these required to prepare the Group financial statements in accordance with
consolidated and parent company financial statements. UK-adopted international accounting standards and applicable law and
they have elected to prepare the parent Company financial statements
Events after the balance sheet date on the same basis.

There have been no material subsequent events between the balance Under company law the directors must not approve the financial
sheet date and the date of signing this report. statements unless they are satisfied that they give a true and fair view of
the state of affairs of the Group and parent Company and of the Group’s
Code of Conduct profit or loss for that period. In preparing each of the Group and parent
Company financial statements, the directors are required to:
Directors and employees are required to comply with the Jaguar Land
Rover Code of Conduct, which is intended to help them put the Group’s • select suitable accounting policies and then apply them consistently;
ethical principles into practice. The Code of Conduct clarifies the basic
principles and standards they are required to follow and the behaviour • make judgements and estimates that are reasonable, relevant and
expected of them. The Code of Conduct can be found at www. reliable;
jaguarlandrover.com.
• state whether they have been prepared in accordance with UK-
Employees, contract staff, third parties with whom the Group has a adopted international accounting standards;
business relationship (such as retailers, suppliers and agents), and any
member of the public may raise ethical and compliance concerns to the • assess the Group and parent Company’s ability to continue as a going
Group’s global helpline or via group.compliance@ jaguarlandrover.com. concern, disclosing, as applicable, matters related to going concern;
and
Slavery and human trafficking statement
• use the going concern basis of accounting unless they either intend
Pursuant to section 54 of the Modern Slavery Act 2015, the Group has to liquidate the Group or the parent Company or to cease operations,
published a slavery and human trafficking statement for the year ended or have no realistic alternative but to do so.
31 March 2023. The statement sets out the steps that the Group has
taken to address the risk of slavery and human trafficking occurring within The directors are responsible for keeping adequate accounting records that
its own operations and its supply chains. This statement can be found on are sufficient to show and explain the parent Company’s transactions and
the corporate website at www.jaguarlandrover.com. disclose with reasonable accuracy at any time the financial position of the
parent Company and enable them to ensure that its financial statements
Whistleblowing policy comply with the Companies Act 2006. They are responsible for such
internal control as they determine is necessary to enable the preparation
The Group’s whistleblowing policy encourages employees to report, in of financial statements that are free from material misstatement, whether
confidence and anonymously if preferred, concerns about suspected due to fraud or error, and have general responsibility for taking such steps
impropriety or wrongdoing in any matters affecting the business. An as are reasonably open to them to safeguard the assets of the Group and
independent hotline exists to facilitate this process. Any matters reported to prevent and detect fraud and other irregularities.
are thoroughly investigated and escalated to the Unusual Events
Committee. Under applicable law and regulations, the directors are also responsible
for preparing a Strategic Report and a Directors’ Report that complies
Diversity policy with that law and those regulations.

Diversity management continues to form a core part of the Group’s The directors are responsible for the maintenance and integrity of the
business strategy. We rely on the diversity of our employees to form the corporate and financial information included on the Company’s website.
foundation of a strong and dynamic company. See page 34 for further Legislation in the UK governing the preparation and dissemination of
details. financial statements may differ from legislation in other jurisdictions.

Greenhouse gas emissions Disclosure of information to auditors

The Group is committed to reducing greenhouse gas emissions and The directors who held office at the date of approval of this directors’
continues to invest heavily in this activity. See pages 23 to 33 for further report confirm that, so far as they are each aware, there is no relevant
details. audit information of which the Group’s auditor is unaware, and each
director has taken all the steps that they ought to have taken as director
to make themselves aware of any relevant audit information and to
establish that the Group’s auditor is aware of that information.

A n n ua l Re p o r t 2022/23 66
Auditor The Annual Report on pages 1 to 167, consisting of the Strategic Report,
the Directors Report, and the Financial Statements, was approved by the
A resolution to reappoint KPMG LLP as auditor of the Group is to be Jaguar Land Rover Automotive plc Board and authorised for issue on 1st
proposed at the 2023 Tata Motors Limited Annual General Meeting. June 2023 and signed on its behalf by:

Acknowledgement

The directors wish to convey their appreciation to all employees for their
continued commitment, effort and contribution in supporting the delivery
of the Group’s performance. The directors would also like to extend their
thanks to all other key stakeholders for their continued support of the
Group and their confidence in its management.
ADRIAN MARDELL
The Annual Report contains a number of links that signpost to INTERIM CHIEF EXECUTIVE OFFICER
Jaguar Land Rover Automotive plc
complimentary information. This complimentary information does not
1st June 2023
form part of the Annual Report.

A n n ua l Re p o r t 2022/23 67
INDEPENDENT AUDITOR’S
REPORT
IN D EPEN D ENT AU D ITO R ’ S REP O RT

TO THE MEMBERS OF JAGUAR L AND ROVER AUTOMOTIVE PLC

1. OUR OPINION IS UNMODIFIED

OVERVIEW
We have audited the financial statements of Jaguar Land Rover Materiality: £90m (2022: £80m)
Automotive plc (“the Company”) for the year ended 31 March 2023 which
comprise the Consolidated Income Statement, Consolidated Statement Group financial 0.4% of Group Revenue
of Comprehensive Income and Expense, Consolidated Balance Sheet, statements as a (2022: 0.4% of Group Revenue)
whole
Consolidated Statement of Changes in Equity, Consolidated Cash Flow
Statement, the parent Company Balance Sheet, the parent Company Coverage 83% of Group Revenue
(2022: 80% of Group Revenue)
Statement of Changes in Equity, the parent Company Cash Flow
Statement, and the related notes, including the parent Company and Key audit vs 2022
matters
Group accounting policies.
Recurring risks Impairment of property plant
and equipment, intangible, and
In our opinion:
right-of use non-current assets
Going concern
• the financial statements give a true and fair view of the state of the
Group’s and of the parent Company’s affairs as at 31 March 2023 and Capitalisation of product
engineering costs
of the Group’s loss for the year then ended;
Valuation of defined benefit
plan obligations
• the Group financial statements have been properly prepared in
accordance with UK-adopted international accounting standards; Parent Company Recoverability of parent
key audit matter Company investment in
subsidiaries and
• the parent Company financial statements have been properly intra- group debtors
prepared in accordance with UK-adopted international accounting
standards and as applied in accordance with the provisions of the
Companies Act 2006; and

• the financial statements have been prepared in accordance with the

requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on

Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are
described below. We have fulfilled our ethical responsibilities under, and
are independent of the Group in accordance with, UK ethical requirements
including the FRC Ethical Standard as applied to listed entities. We believe
that the audit evidence we have obtained is a sufficient and appropriate
basis for our opinion. .

A n n ua l Re p o r t 2022/23 69
2. KEY AUDIT MATTERS: INCLUDING OUR ASSESSMENT OF RISKS had the greatest effect on: the overall audit strategy; the allocation of
OF MATERIAL MISSTATEMENT resources in the audit; and directing the efforts of the engagement
team. These matters were addressed in the context of our audit of the
Key audit matters are those matters that, in our professional judgement, financial statements as a whole, and in forming our opinion thereon, and
were of most significance in the audit of the financial statements and we do not provide a separate opinion on these matters. In arriving at our
include the most significant assessed risks of material misstatement audit opinion above, the key audit matters, in decreasing order of audit
(whether or not due to fraud) identified by us, including those which significance, were as follows (unchanged from 2022):

The risk Our response

Impairment of property Forecast-based assessment We performed the tests below rather than seeking to rely on any of
plant and equipment, the Group’s controls because the nature of the balance is such that
intangible, and right-of- we would expect to obtain audit evidence primarily through the
use non-current assets The Group holds a significant detailed procedures described. Our procedures included:
amount of property, plant and
Carrying value of property equipment, intangible assets and • Historical accuracy: Evaluated historical forecasting accuracy
plant and equipment, right-of-use assets on its balance of discounted cash flow forecasts, including key assumptions, by
intangible, and right-of- sheet and the cash generating unit comparing them to the actual results.
use non-current assets of which these assets form a part is
£10,994 million; at risk of being Key assumptions include volumes, variable profit , execution risk
(31 March 2022: Impaired. adjustments and discount rate.
£11,687 million)
In particular, there are execution • Historical comparison: Assessed the appropriateness of the
Refer to note 20 risks associated with the Group’s Group’s key assumptions used in the discounted cash flow
transition to Battery Electric forecasts by comparing those, where appropriate, to historical
Vehicles (‘BEV’) resulting from its trends.
previously announced ‘Reimagine’
strategy. In addition, there are • Our industry expertise: Assessed the appropriateness of
other headwinds facing the Group the Group’s estimated value in use amount by comparing the
and the industry, including the implied trading multiples to market multiples of comparative
continuation of semi-conductor companies with the assistance of our valuation specialists.
and other supply constraints,
production constraints, cost ­ Assessed and critically challenged the appropriateness of
inflationary pressures, COVID- the Group’s assumptions used in the cash flow projections by
related lockdowns and the comparing a key assumption of sales volumes to externally
conflict in Ukraine. Collectively derived data.
these risks relate to the key ­
assumptions of volumes and ­ Compared the Group’s discount rate and long-term growth
variable profit. It is also important rate to external benchmark data and comparative companies
to consider the effect of this and re-performed the discount rate calculation using the
economic uncertainty on the capital asset pricing model with the assistance of our valuation
discount rate. specialists.
­
The effect of these matters is that, • Sensitivity analysis: Performed a sensitivity analysis on key
as part of our risk assessment, we assumptions, to independently estimate a range for comparison,
determined that the calculation taking account of the Group’s Reimagine strategy and risks
of the value in use of property, facing the industry.
plant and equipment, intangible
assets, and right-of-use assets • Comparing valuations: Assessed the Group’s reconciliation
has a high degree of estimation between the estimated market capitalisation of the Group, by
uncertainty, with a potential reference to the overall market capitalisation of the Tata Motors
range of reasonable outcomes Limited Group and compared to the estimated recoverable
greater than our materiality for the amount of the cash generating unit.
financial statements as a whole,
and possibly many times that • Update to period end: Assessed whether there had been a
amount. significant effect on management’s VIU measurement after the
date of the impariment test (31 January 2023) but before the
end of the reporting period.

• Impairment reversal: Assessed whether the Group’s estimated

value in use was indicative of an impairment reversal.

• Assessing transparency: Assessed whether the Group’s

disclosures about the sensitivity relating to key assumptions
on the valuation of property, plant and equipment, intangible
assets, and right-of-use non-current assets are adequate.

A n n ua l Re p o r t 2022/23 70
 The risk Our response

Going Disclosure quality: We considered whether these risks could plausibly affect the
Concern liquidity or covenant compliance in the going concern period by
The financial statements explain assessing the degree of downside assumption that, individually and
Refer to note 2 how the Board has formed a collectively, could result in a liquidity or covenant issue, taking into
judgement that it is appropriate account the Group’s current and projected cash and facilities (a
to adopt the going concern basis reverse stress test). Our procedures also included:
of preparation for the Group
and parent Company. • Assessment of management’s process: Inspected
management’s process to produce forecasts, including the
That judgement is based on an assessment of internal and external factors used to determine
evaluation of the inherent risks the risks to the business, and the process management used to
to the Group’s and the parent complete the reverse stress test.
Company’s business model,
in particular risks associated • Funding assessment: Agreed current Group and parent
with semi-conductor shortages, Company financing facilities available by obtaining relevant
and how those risks might facility agreements. Inspected existing and new loan
affect the Group and parent agreements in order to determine covenants attached and
Company’s financial resources recalculated the forecast covenant calculations based on
or ability to continue operations the terms of the Group’s borrowing facilities..
over the going concern period of
assessment (a period of at least a • Key dependency assessment: Evaluated and critically
year from the date of approval of challenged management on whether the key assumptions
the financial statements). underpinning the forecast cash flows, which the Directors
have used to support the Directors’ going concern basis
The risks most likely to adversely of preparation and to assess whether the Group can meet
affect the Group and parent its financial commitments as they fall due, were realistic,
Company’s available financial achievable and consistent with the external environment
resources and compliance with and other matters identified in the audit. The key
covenant thresholds over this assumptions include sales volumes, including the variable
period are: profit optimisation strategy, together with material cost
inflation in variable profit.
• The impact of semiconductor
shortages on the Group’s • Historical comparisons: Evaluated the historical cash flow
supply chain and production forecasting accuracy of the Group by comparing historical
capacity risks cash flows to actual results reported, as well as assessing the
accuracy of key assumptions previously applied.
• The diminishing impacts of
the COVID-19 pandemic and • Benchmarking assumptions: Assessed the appropriateness of
the impact of inflationary the Group’s key assumptions used in the cash flow forecasts by
pressures on material costs. benchmarking them to externally derived data, with particular
focus on forecast sales volumes.
The risk for our audit was whether
or not those risks were such • Sensitivity analysis: Considered sensitivities over the key
that they amount to a material assumptions underlying the Group’s cash flow forecasts and
uncertainty that may cast their impact on the covenant test and the level of available
significant doubt about the ability financial resources.
to continue as a going concern.
Had they been such, then that fact • Our sector experience: We used our industry specialists to
would have been required to be critically challenge the key assumptions made by the Directors
disclosed. in their forecast cash flows.

• Assessing transparency: Considered whether the going concern

disclosure in note 2 to the financial statements gives a full and
accurate description of the Directors’ assessment of going
concern, including the identified risks and related sensitivities.

A n n ua l Re p o r t 2022/23 71
 The risk Our response

Capitalisation Accounting treatment Our procedures included:

of product
engineering costs The Group has historically • Control operation: Tested controls including in relation to the
capitalised a high proportion Directors’ assessment as to whether product engineering costs
£671 million; of product development cost are eligible for capitalisation.
(2022: £457 million) and there is a key judgement in
determining whether the nature • Personnel interviews: Corroborated judgements made by the
Refer to note 20 of the product engineering costs Directors around the timing of commencement of capitalisation
satisfy the criteria for capitalisation of product engineering costs through discussions with project
to ‘Intangible Assets, Product level staff.
Development In Progress’ and
when this capitalisation should • Our sector experience: Critically assessed the Directors’
commence. judgements regarding product engineering costs identified by
the Directors as being eligible for capitalisation against both
The judgement of when the accounting standards and our experience of practical
capitalisation should commence application of these standards in other companies.
requires the satisfaction of a
number of IAS 38 capitalisation • Consider alternatives: Critically assessed internal consistency
criteria and a key judgement in between assumptions used in the Group’s assessment
assessing whether development of economic viability on key development projects and
projects will generate probable assumptions used in cash flow forecasts in calculation of Group’s
future economic benefit. There value in use assessed through our response to the significant risk
are more projects meeting the of ‘Impairment of property plant and equipment, intangible, and
capitalisation gateway in the right-of use noncurrent assets.
current year as the Group’s ­
product development spend is • Tests of details: For a sample of product engineering costs
increasingly incurred in relation to identified by the Directors as being eligible for capitalisation,
its transition to Battery Electric agreed that their nature was consistent with the description
Vehicles (BEV) resulting from its of the account to which those costs were recorded, and the
previously announced “Reimagine” timing of recognition was appropriate. In addition, we inspected
strategy. This has elevated this any reallocations from accounts ineligible for capitalisation to
risk in relation to the timing of accounts that are eligible as capitalised project engineering
capitalisation judgement. costs, which we would consider to meet the criteria of a high
risk journal, and obtained evidence to confirm appropriateness.
It is also noted that there is a risk
of fraud around the allocation of • Assessing transparency: Assessed the adequacy of the Group’s
directly attributable expenditure disclosures in respect of the key judgements made relating
to the correct project codes to to the nature of the costs capitalised and the point at which
ensure appropriate costs are being capitalisation commences.
capitalised.

The financial statements (note

19) disclose that had the value of
central overheads not been
identified by the Directors as
being eligible for capitalisation it
would have reduced the amount
capitalised by £77 million (2022:
£52 million).

A n n ua l Re p o r t 2022/23 72
 The risk Our response

Valuation of Subjective valuation Our procedures included:

defined benefit plan
obligations Small changes in the key • Control Operation: Tested controls over the assumptions
assumptions and estimates, being applied in the valuation and inspected the Group’s annual
£5,089 million (2022: the discount rate, RPI , CPI and validation of the assumptions used by its actuarial expert.
£7,522 million) mortality/life expectancy, used
to value the Group’s pension ­ Tested the Group’s controls operating over selection and
Refer to note 34 obligation (before deducting monitoring of its actuarial expert for competence and
scheme assets) would have a objectivity.
significant effect on the amount
of the Groups’ net defined benefit • Benchmarking assumptions: Challenged, with the support of
plan obligation asset. The risk our own actuarial specialists, the key assumptions applied to the
is that these assumptions are valuation of the liabilities, being the discount rate, inflation rate
inappropriate resulting in an and mortality/ life expectancy against externally derived data.
inappropriate valuation of plan
obligations. • Assessing actuaries’ credentials: Evaluating the competency,
capability and objectivity of the Group’s external experts who
The effect of these matters is that, assisted in determining the actuarial assumptions used to
as part of our risk assessment, determine the defined benefit obligation.
we determined that valuation of
the pension obligation has a high • Assessing transparency: Considered the adequacy of the
degree of estimation uncertainty, Group’s disclosures in respect of the sensitivity of the Groups’
with a potential range of net defined benefit plan asset to these assumptions.
reasonable outcomes greater than
our materiality for the financial
statements as a whole, and
possibly many times that amount.
The financial statements (note 34)
disclose the sensitivity estimated
by the Group.

The risk Our response

Recoverability of parent Low risk, high value We performed the tests below rather than seeking to rely on any of
Company investment in the group’s controls because the nature of the balance is such that
subsidiaries and The carrying amount of the we would expect to obtain audit evidence primarily through the
intra-group debtors parent Company’s investment in detailed procedures described. Our procedures included:
its subsidiary, which acts as an
Investment in subsidiaries intermediate holding company for • Tests of detail: Compared the combined carrying amount of the
£1,655 million; (2022: the rest of the parent Company’s parent Company’s investment and intra-group receivables with
£1,655 million) subsidiaries, represents 21% (2022: the Group’s value in use assessed through our response to the
19%) of the parent Company’s significant risk of ‘Impairment of property plant and equipment,
Intra-group debtors assets. The carrying amount of the intangible, and right-of use noncurrent assets’ to identify
£6,044 million; (2022: intra-group debtors balance whether its value in use, was in excess of its carrying amount.
£7,015 million) comprises the remaining 79%
(2022: 81%). • Assessing subsidiary audits: Assessed the work performed
as part of the group audit over the subsidiaries’ profits and net
Their recoverability is not at a high assets.
risk of significant misstatement or
subject to significant judgement. • Comparing valuations: Compared the carrying amount of the
investment in the subsidiary to the Group’s estimated market
However, due to their materiality capitalisation of its ultimate parent, adjusted to exclude the
and in the context of the parent liabilities of the parent Company and net assets of companies
Company financial statements this outside the Group, being an approximation of the recoverable
is considered to be one of the amount of the investment.
areas that had the greatest effect
on our overall parent Company
audit.

A n n ua l Re p o r t 2022/23 73
3. OUR APPLICATION OF MATERIALITY AND AN OVERVIEW OF The remaining 17% (2022: 20%) of total Group revenue, 8% (2022: 15%)
THE SCOPE OF OUR AUDIT of the total profits and losses that made up Group loss before tax, 9%
(2022: 15%) of the total profits and losses that made up Group loss before
Materiality for the Group financial statements as a whole was set at £90 exceptional items and tax and 9% (2022: 16%) of total Group assets
million (2022: £80 million), determined with reference to a benchmark are represented by 30 (2022:30) reporting components, none of which
of Group revenue of £22,809 million (2022: £ 18,320 million) of which it individually represented more than 3% (2022: 2%) of any of total Group
represents 0.4% (2022: 0.4%). revenue, total profits and losses that made up Group loss before tax, total
profits and losses that made up Group loss before exceptional items and
We consider Group revenue to be the most appropriate benchmark, as tax or total Group assets. For the residual components, we performed
it provides a more stable measure year on year than Group profit or loss analysis at an aggregated Group level to re- examine our assessment that
before tax. there were no significant risks of material misstatement within these.

Materiality for the parent Company financial statements as a whole was The Group team instructed component auditors as to the significant
set at £60 million (2022: £64 million), determined with reference to a areas to be covered, including the relevant risks detailed above and
benchmark of the parent Company total assets of £7,708 million (2022: the information to be reported back. The Group team approved the
£8,678 million), of which it represents 0.78% (2022: 0.75%). component materialities, which ranged from £6.5 million to £78 million
(2022: £6 million to £71 million), having regard to the mix of size and risk
In line with our audit methodology, our procedures on individual profile of the Group across the components.
account balances and disclosures were performed to a lower threshold,
performance materiality, so as to reduce to an acceptable level the risk The work on 5 of the 8 (2022: 5 of the 8) components was performed
that individually immaterial misstatements in individual account balances by component auditors and the rest, including the audit of the parent
add up to a material amount across the financial statements as a whole. Company, was performed by the Group team.

Performance materiality was set at 65% (2022: 65%) of materiality We were able to rely upon the Group’s internal control over financial
for the financial statements as a whole, which equates to £59 million reporting in several areas of our audit, where our controls testing
(2022: £52 million) for the group and £39 million (2022: £42 million) for supported this approach, which enabled us to reduce the scope of our
the parent company. We applied this percentage in our determination substantive audit work; in the other areas the scope of the audit work
of performance materiality based on the level of identified control performed was fully substantive.
deficiencies during the prior period.
The Group team visited 5 (2022: 1) overseas component locations to
We agreed to report to the Audit Committee any corrected or uncorrected assess the audit risk and strategy. Video and telephone conference
identified misstatements exceeding £4.5 million (2022: £4.0 million) in meetings were also held with these component auditors. At these visits
addition to other identified misstatements that warranted reporting on and meetings, the findings reported to the Group team were discussed in
qualitative grounds. more detail, and any further work required by the Group team was then
performed by the component auditor.
Of the Group’s 38 (2022: 38) reporting components, we subjected 4 (2022:
4) to full scope audits for group purposes and 4 (2022: 4) to specified
risk-focused audit procedures. The latter were not individually financially
significant enough to require a full scope audit for group purposes but did
present specific individual risks that needed to be addressed.

The components within the scope of our work accounted for the
percentages illustrated opposite.

A n n ua l Re p o r t 2022/23 74
 Group Revenue Group Materiality
£22,809m (2022: £18,320m) £90m (2022: £80m)

£90m
Whole financial statements materiality (2022: £80m)

£59m
Whole financial statements performance materiality (2022: £52m)

£78m
Range of materiality at 8 (2022: 8) components (£6.5m-£78m)
(2022: £6m to £71m)

Revenue
Group materiality £4.5m
Misstatements reported to the audit committee (2022: £4m)

Group Revenue Group total assets

7%
9% 6%
6% 83% 92% 79%
(2022: 80%) (2022: 85%)
74%

74% 84%

Total profits and losses that made Total profits and losses that made up
up Group loss before tax Group loss before exceptional items
and tax

4% 4%

18% 67%
18%
91% 91%
(2022: 84%) (2022: 85%) 67%

88% 87%

Full scope for group audit purposes 2023 Specified risk-focused audit procedures 2022
Specified risk-focused audit procedures 2023 Residual components
Full scope for group audit purposes 2022

A n n ua l Re p o r t 2022/23 75
4. GOING CONCERN

The Directors have prepared the financial statements on the going concern We communicated identified fraud risks throughout the audit team and
basis as they do not intend to liquidate the Group or the Company or to remained alert to any indications of fraud throughout the audit.
cease their operations, and as they have concluded that the Group and
the Company’s financial position means that this is realistic. They have This included communication from the Group audit team to component
also concluded that there are no material uncertainties that could have audit teams of relevant fraud risks identified at the Group level and
cast significant doubt over their ability to continue as a going concern for request to component audit teams to report to the Group audit team any
at least a year from the date of approval of the financial statements (“the instances of fraud that could give rise to a material misstatement at the
going concern period”). Group level.

An explanation of how we evaluated management’s assessment of going As required by auditing standards, and taking into account possible
concern is set out in the related key audit matter in section 2 of this report. pressures to meet profit targets, we perform procedures to address
the risk of management override of controls and the risk of fraudulent
Our conclusions based on this work: revenue recognition, in particular: the risk that Group and component
management may be in a position to make inappropriate accounting
• we consider that the directors’ use of the going concern basis entries; the risk of bias in accounting estimates and judgements; and the
of accounting in the preparation of the financial statements is risk that new vehicle revenue is overstated through recording revenues in
appropriate; the incorrect period.

• we have not identified, and concur with the directors’ assessment We also identified fraud risks related to inappropriate capitalisation of
that there is not, a material uncertainty related to events or conditions development costs and inappropriate impairment assumptions in relation
that, individually or collectively, may cast significant doubt on the to the value in use estimate, in response to possible pressures to meet
Group’s or Company’s ability to continue as a going concern for the profit targets.
going concern period; and
Our response in respect of the identified fraud risk related to inappropriate
• we have nothing material to add or draw attention to in relation to capitalisation of development costs is set out in the procedures described
the directors’ statement in note 2 to the financial statements on in the key audit matter disclosure in section 2 of this report.
the use of the going concern basis of accounting with no material
uncertainties that may cast significant doubt over the Group and Our response in respect of the identified fraud risk related to inappropriate
Company’s use of that basis for the going concern period, and we impairment assumptions is set out in the procedures described in the key
found the going concern disclosure in note 2 to be acceptable. audit matter disclosure in section 2 of this report including specifically our
critical challenge of management’s estimates with reference to external
However, as we cannot predict all future events or conditions and as data.
subsequent events may result in outcomes that are inconsistent with
judgements that were reasonable at the time they were made, the above In determining the audit procedures we took into account the results of
conclusions are not a guarantee that the Group or the Company will our evaluation and testing of the operating effectiveness of the Group-
continue in operation. wide fraud risk management controls.

5. FRAUD AND BREACHES OF LAWS AND REGULATIONS – ABILITY We also performed procedures including:
TO DETECT
• Identifying journal entries to test for all relevant full scope components
Identifying and responding to risks of material misstatement due to based on risk criteria tailored for the risks at each component and
fraud comparing the identified entries to supporting documentation.
Examples of the criteria applied include those posted by senior finance
To identify risks of material misstatement due to fraud (“fraud risks”) we management, those posted and approved by the same user, those
assessed events or conditions that could indicate an incentive or pressure posted to unusual accounts, and those in relation to inappropriate
to commit fraud or provide an opportunity to commit fraud. Our risk capitalisation as discussed in the key audit matter disclosure in
assessment procedures included: section 2 of this report.

• Enquiring of Directors, the audit committee, internal audit and certain • Assessing whether the judgements made in making accounting
senior managers as to the Group’s high-level policies and procedures estimates are indicative of a potential bias.
to prevent and detect fraud, including the internal audit function, and
the Group’s channel for “whistleblowing”, as well as whether they • Assessing when revenue was recognised, particularly focusing on
have knowledge of any actual, suspected or alleged fraud. revenue recognised in the days before the year end date, and whether
it was recognised in the correct year.
• Reading Board and audit committee minutes.
Work on the fraud risks was performed by a combination of component
• Considering remuneration incentive schemes and performance auditors and the group audit team.
targets for management and Directors.

• Using analytical procedures to identify any unusual or unexpected

relationships.

A n n ua l Re p o r t 2022/23 76
Identifying and responding to risks of material misstatement due 6. WE HAVE NOTHING TO REPORT ON THE OTHER INFORMATION
to non-compliance with laws and regulations IN THE ANNUAL REPORT

We identified areas of laws and regulations that could reasonably be The directors are responsible for the other information presented in
expected to have a material effect on the financial statements from our the Annual Report together with the financial statements. Our opinion
general commercial and sector experience, and through discussion with on the financial statements does not cover the other information and,
the Directors and other management (as required by auditing standards), accordingly, we do not express an audit opinion or, except as explicitly
and from inspection of the Group’s regulatory and legal correspondence stated below, any form of assurance conclusion thereon.
and discussed with the Directors and other management the policies and
procedures regarding compliance with laws and regulations. Our responsibility is to read the other information and, in doing so,
consider whether, based on our financial statements audit work, the
We communicated identified laws and regulations throughout our team information therein is materially misstated or inconsistent with the
and remained alert to any indications of noncompliance throughout financial statements or our audit knowledge. Based solely on that work
the audit. This included communication from the Group audit team to we have not identified material misstatements in the other information.
component audit teams of relevant laws and regulations identified at the
Group level, and a request for component auditors to report to the group Strategic report and directors’ report
team any instances of non-compliance with laws and regulations that Based solely on our work on the other information:
could give rise to a material misstatement at the Group level.
• we have not identified material misstatements in the strategic report
The potential effect of these laws and regulations on the financial and the directors’ report;
statements varies considerably.
• in our opinion the information given in those reports for the financial
Firstly, the Group is subject to laws and regulations that directly affect year is consistent with the financial statements; and
the financial statements including financial reporting legislation (including
related companies legislation), distributable profits legislation, taxation • in our opinion those reports have been prepared in accordance with
legislation, and pension legislation and we assessed the extent of the Companies Act 2006.
compliance with these laws and regulations as part of our procedures on
the related financial statement items. 7. WE HAVE NOTHING TO REPORT ON THE OTHER MATTERS ON
WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
Secondly, the Group is subject to many other laws and regulations where
the consequences of non-compliance could have a material effect Under the Companies Act 2006, we are required to report to you
on amounts or disclosures in the financial statements, for instance if, in our opinion:
through the imposition of fines or litigation. We identified the following
areas as those most likely to have such an effect: product compliance, • adequate accounting records have not been kept by the parent
environmental, health and safety, data protection laws, bribery and Company, or returns adequate for our audit have not been received
corruption, employment law, and export controls, recognising the nature from branches not visited by us; or
of the Group’s activities and its legal form. Auditing standards limit the
required audit procedures to identify non-compliance with these laws • the parent Company financial statements are not in agreement with
and regulations to enquiry of the Directors and other management and the accounting records and returns; or
inspection of regulatory and legal correspondence, if any. Therefore if a
breach of operational regulations is not disclosed to us or evident from • certain disclosures of directors’ remuneration specified by law are not
relevant correspondence, an audit will not detect that breach. made; or

Context of the ability of the audit to detect fraud or breaches of • we have not received all the information and explanations we require
law or regulation for our audit.

Owing to the inherent limitations of an audit, there is an unavoidable We have nothing to report in these respects
risk that we may not have detected some material misstatements in
the financial statements, even though we have properly planned and
performed our audit in accordance with auditing standards. For example,
the further removed noncompliance with laws and regulations is from
the events and transactions reflected in the financial statements, the less
likely the inherently limited procedures required by auditing standards
would identify it.

In addition, as with any audit, there remained a higher risk of non-

detection of fraud, as these may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal controls. Our
audit procedures are designed to detect material misstatement. We are
not responsible for preventing non-compliance or fraud and cannot be
expected to detect noncompliance with all laws and regulations.

A n n ua l Re p o r t 2022/23 77
8. RESPECTIVE RESPONSIBILITIES 9. THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE
OUR RESPONSIBILITIES
Directors’ responsibilities
This report is made solely to the Company’s members, as a body, in
As explained more fully in their statement set out on page 66, the accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
directors are responsible for: the preparation of the financial statements audit work has been undertaken so that we might state to the Company’s
including being satisfied that they give a true and fair view; such internal members those matters we are required to state to them in an auditor’s
control as they determine is necessary to enable the preparation of report and for no other purpose. To the fullest extent permitted by law,
financial statements that are free from material misstatement, whether we do not accept or assume responsibility to anyone other than the
due to fraud or error; assessing the Group and parent Company’s ability Company and the Company’s members, as a body, for our audit work, for
to continue as a going concern, disclosing, as applicable, matters related this report, or for the opinions we have formed.
to going concern; and using the going concern basis of accounting unless
they either intend to liquidate the Group or the parent Company or to
cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities

Our objectives are to obtain reasonable assurance about whether the

financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue our opinion in an auditor’s Simon Haydn-Jones (Senior Statutory Auditor)
report. Reasonable assurance is a high level of assurance, but does not for and on behalf of KPMG LLP, Statutory Auditor
guarantee that an audit conducted in accordance with ISAs (UK) will
always detect a material misstatement when it exists. Misstatements Chartered Accountants
can arise from fraud or error and are considered material if, individually or One Snowhill
in aggregate, they could reasonably be expected to influence the economic Snow Hill Queensway
decisions of users taken on the basis of the financial statements. Birmingham
B4 6GH
A fuller description of our responsibilities is provided on the FRC’s website
at www.frc.org.uk/auditorsresponsibilities. 1st June 2023

A n n ua l Re p o r t 2022/23 78
FINANCIAL
S TAT E M E N T S
F I N A N C I A L S TAT E M E N T S

C O N S O L I D AT E D I N C O M E S TAT E M E N T

Year ended 31 March (£ millions) Note 2023 2022 2021

Revenue 5 22,809 18,320 19,731

Material and other cost of sales* 4, 6 (14,008) (11,239) (12,335)
Employee costs* 4, 7 (2,524) (2,265) (2,141)
Other expenses* 4, 10 (4,777) (3,701) (3,589)
Exceptional items 4 161 (43) (1,523)
Other income 9 284 200 195
Engineering costs capitalised 11 727 455 727
Depreciation and amortisation 14 (2,042) (1,944) (1,976)
Foreign exchange (loss)/gain and fair value adjustments 12 (108) 140 331
Finance income 13 67 9 11
Finance expense (net) 13 (507) (369) (251)
Share of profit/(loss) of equity accounted investments 16 15 (18) (41)
Profit/(loss) before tax 97 (455) (861)
Income tax expense 15 (157) (367) (239)
Loss for the year (60) (822) (1,100)
Attributable to:
Owners of the Company (60) (818) (1,101)
Non-controlling interests - (4) 1

*‘Material and other cost of sales’, ‘Employee costs’ and ‘Other expenses’ exclude the exceptional items explained in note 4.

The notes on pages 84 to 150 are an integral part of these consolidated financial statements.

C O N S O L I D AT E D S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E A N D E X P E N S E

Year ended 31 March (£ millions) Note 2023 2022 2021

Loss for the year (60) (822) (1,100)

Items that will not be reclassified subsequently to profit or
loss:
Remeasurement of net defined benefit obligation 34 (14) 707 (751)
Income tax related to items that will not be reclassified 15 4 (92) 143
(10) 615 (608)
Items that may be reclassified subsequently to profit or
loss:
(Loss)/gain on cash flow hedges (net) (135) (896) 546
Currency translation differences 13 24 (41)
Income tax related to items that may be reclassified 15 (108) 205 (103)
(230) (667) 402
Other comprehensive expense net of tax (240) (52) (206)
Total comprehensive expense attributable to shareholder (300) (874) (1,306)
Attributable to:
Owners of the Company (300) (870) (1,307)
Non-controlling interests - (4) 1

The notes on pages 84 to 150 are an integral par t of these consolidated financial statements.

A n n ua l Re p o r t 2022/23 80
C O N S O L I D AT E D B A L A N C E S H E E T

As at 31 March (£ millions) Note 2023 2022 2021

Non-current assets
Investments in equity accounted investees 16 329 321 316
Other non-current investments 17 43 30 22
Other financial assets 18 149 185 341
Property, plant and equipment 19 5,759 6,253 6,461
Intangible assets 20 4,600 4,866 5,387
Right-of-use assets 38 635 568 543
Pension asset 34 659 434 -
Other non-current assets 21 75 35 32
Deferred tax assets 15 357 336 397
Total non-current assets 12,606 13,028 13,499
Current assets
Cash and cash equivalents 22 3,687 4,223 3,778
Short-term deposits and other investments 105 175 1,004
Trade receivables 1,013 722 863
Other financial assets 18 375 394 477
Inventories 24 3,238 2,781 3,022
Other current assets 21 607 493 448
Current tax assets 16 20 80
Assets classified as held for sale 25 62 4 -
Total current assets 9,103 8,812 9,672
Total assets 21,709 21,840 23,171
Current liabilities
Accounts payable 26 5,891 5,144 6,308
Short-term borrowings 27 1,478 1,779 1,206
Other financial liabilities 28 923 870 746
Provisions 29 1,089 989 1,161
Other current liabilities 30 528 674 638
Current tax liabilities 110 116 100
Total current liabilities 10,019 9,572 10,159
Non-current liabilities
Long-term borrowings 27 4,600 5,248 4,972
Other financial liabilities 28 1,123 871 625
Provisions 29 1,091 1,112 1,188
Retirement benefit obligation 34 22 25 387
Other non-current liabilities 30 487 404 461
Deferred tax liabilities 15 128 105 116
Total non-current liabilities 7,451 7,765 7,749
Total liabilities 17,470 17,337 17,908
Equity attributable to shareholders
Ordinary shares 31 1,501 1,501 1,501
Capital redemption reserve 31 167 167 167
Other reserves 32 2,571 2,835 3,586
Equity attributable to shareholders 4,239 4,503 5,254
Non-controlling interests - - 9
Total equity 4,239 4,503 5,263
Total liabilities and equity 21,709 21,840 23,171

The notes on pages 84 to 150 are an integral part of these consolidated financial statements.
These consolidated financial statements were approved by the Company’s Board of Directors and authorised for issue on 1st June 2023.
They were signed on its behalf by:

ADRIAN MARDELL
INTERIM CHIEF EXECUTIVE OFFICER
COMPANY REGISTERED NUMBER: 06477691

A n n ua l Re p o r t 2022/23 81
C O N S O L I D AT E D S TAT E M E N T O F C H A N G E S I N E Q U I T Y

Capital Equity Non-

Ordinary Other
(£ millions) redemption attributable to controlling Total equity
shares reserves
reserve shareholder interests
Balance at 1 April 2022 1,501 167 2,835 4,503 - 4,503
Loss for the year - - (60) (60) - (60)
Other comprehensive expense for the year - - (240) (240) - (240)
Total comprehensive expense - - (300) (300) - (300)
Amounts removed from hedge reserve and
recognised in inventory - - 45 45 - 45
Income tax related to amounts removed from
hedge reserve and recognised in inventory - - (9) (9) - (9)
Balance at 31 March 2023 1,501 167 2,571 4,239 - 4,239

Balance at 1 April 2021 1,501 167 3,586 5,254 9 5,263

Loss for the year - - (818) (818) (4) (822)
Other comprehensive expense for the year - - (52) (52) - (52)
Total comprehensive expense - - (870) (870) (4) (874)
Amounts removed from hedge reserve and
recognised in inventory - - 147 147 - 147
Income tax related to amounts removed from
hedge reserve and recognised in inventory - - (28) (28) - (28)
Disposal of subsidiaries - - - - (5) (5)
Balance at 31 March 2022 1,501 167 2,835 4,503 - 4,503

Balance at 1 April 2020 1,501 167 4,880 6,548 8 6,556

(Loss)/profit for the year - - (1,101) (1,101) 1 (1,100)
Other comprehensive expense for the year - - (206) (206) - (206)
Total comprehensive (expense)/ income - - (1,307) (1,307) 1 (1,306)
Amounts removed from hedge reserve and
recognised in inventory - - 16 16 - 16
Income tax related to amounts removed from
hedge reserve and recognised in inventory - - (3) (3) - (3)
Balance at 31 March 2021 1,501 167 3,586 5,254 9 5,263

The notes on pages 84 to 150 are an integral par t of these consolidated financial statements.

A n n ua l Re p o r t 2022/23 82
C O N S O L I D AT E D C A S H F L O W S TAT E M E N T

Year ended 31 March (£ millions) Note 2023 2022 2021

Cash flows from operating activities

Cash generated from operations 40 2,590 572 2,536
Income tax paid (239) (138) (210)
Net cash generated from operating activities 2,351 434 2,326
Cash flows from investing activities
Investment in equity accounted investments - - (1)
Purchases of other investments (7) (4) (4)
Proceeds from sale of other investments - - 22
Investment in other restricted deposits (42) (41) (57)
Redemption of other restricted deposits 43 39 55
Movements in other restricted deposits 1 (2) (2)
Investment in short-term deposits and other investments (849) (1,104) (3,169)
Redemption of short-term deposits and other investments 933 1,935 3,512
Movements in short-term deposits and other investments 84 831 343
Purchases of property, plant and equipment (605) (712) (1,050)
Purchases of other assets acquired with view to resale (24) - -
Proceeds from sale of property, plant and equipment 7 7 8
Cash outflow relating to intangible asset expenditure (775) (481) (799)
Finance income received 62 8 14
Disposal of subsidiaries (net of cash disposed) 2 (10) -
Net cash used in investing activities (1,255) (363) (1,469)
Cash flows from financing activities
Finance expenses and fees paid (495) (402) (313)
Proceeds from issuance of borrowings 1,261 2,095 1,953
Repayment of borrowings (2,426) (1,347) (749)
Payments of lease obligations (72) (71) (79)
Net cash (used in)/generated from financing activities (1,732) 275 812
Net (decrease)/increase in cash and cash equivalents (636) 346 1,669
Cash and cash equivalents at beginning of year 22 4,223 3,778 2,271
Effect of foreign exchange on cash and cash equivalents 100 99 (162)
Cash and cash equivalents at end of year 22 3,687 4,223 3,778

The notes on pages 84 to 150 are an integral par t of these consolidated financial statements.

A n n ua l Re p o r t 2022/23 83
N O T E S ( F O R M I N G PA R T O F T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S )

1 BACKGROUND AND OPERATIONS

Jaguar Land Rover Automotive plc (“the Company”) and its subsidiaries are collectively referred to as “the Group” or “JLR”. The Company is a public
limited company incorporated and domiciled in the United Kingdom. The address of its registered office is Abbey Road, Whitley, Coventry, CV3 4LF,
England, United Kingdom.

The Company is a subsidiary of Tata Motors Limited, India and acts as an intermediate holding company for the Jaguar Land Rover business. The principal
activity during the year was the design, development, manufacture and marketing of high-performance luxury saloons, specialist sports cars and four-
wheel-drive off-road vehicles.

These consolidated financial statements have been prepared in Pound Sterling (GBP) and rounded to the nearest million GBP (£ million) unless otherwise
stated. Results for the year ended and as at 31 March 2021 have been disclosed solely for the information of the users.

2 ACCOUNTING INFORMATION AND POLICIES

Statement of compliance
These consolidated and parent company financial statements have been prepared in accordance with UK-adopted international accounting standards.
The Company has taken advantage of section 408 of the Companies Act 2006 and, therefore, the separate financial statements of the Company do not
include the income statement or the statement of comprehensive income of the Company on a stand-alone basis.

Basis of preparation
The consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments, which are measured at fair
value at the end of each reporting period as explained in the accounting policies in note 37.

Going concern
The Financial Statements have been prepared on a going concern basis, which the Directors consider to be appropriate for the reasons set out below.

The Directors have assessed the financial position of the Group as at 31 March 2023, and the projected cash flows of the Group for at least the twelve-
month period from the date of authorisation of the financial statements (the ‘going concern assessment period’).

The Group had available liquidity of £5.3 billion at 31 March 2023, including £3.8 billion of cash and the Group’s undrawn £1.52 billion revolving credit
facility, which was renewed on 16 December 2022 with a maturity date of April 2026. There is a £1.0 billion minimum quarter-end liquidity covenant in
the Group’s UKEF loans and RCF facility over the going concern assessment period. There is £1.4 billion of maturing debt in the going concern assessment
period, comprising UKEF and CNY loan repayments and EUR bond repayments, and no new funding is assumed. Net debt was reduced by £0.2 billion
in the year as the Group continues to take actions to reduce net debt in the future. Further details of the Group’s available financing facilities and the
maturity of facilities is described in note 27.

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

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

The Group has carried out a reverse stress test against the base case to determine the decline in wholesale volume over a 12-month period that would
result in a liquidity level that breaches the £1.0 billion liquidity financial covenant. The reverse stress test assumes continued supply constraints over the
12-month period and optimisation of production to maximise production of higher margin products.

In order to reach a liquidity level that breaches covenants in Q4 of FY24, it would require a sustained decline in wholesale volumes of more than 65%
compared to the base case over a 12-month period. The reverse stress test reflects the variable profit impact of the wholesale volume decline, and
assumes all other assumptions are held in line with the base case. It does not reflect other potential upside measures that could be taken in such a
reduced volume scenario or any new funding.

The Group does not consider this scenario to be plausible given that the stress test volumes are significantly lower than the volumes seen during both
the peak of the COVID-19 pandemic and the worst quarter of semiconductor shortages. The Group has a strong order bank as at 31 March 2023 and is
confident that it can significantly exceed reverse stress test volumes.

A n n ua l Re p o r t 2022/23 84
The Group has also considered the impact of severe but plausible downside scenarios, including scenarios that reflect a decrease in variable profit per
unit compared with the base case to include additional increases in material costs as a result of inflationary increases and other related production costs.
The expected wholesale volumes under all of these scenarios is higher than under the reverse stress test.

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

Accounting policies
Accounting policies are included in the relevant notes to the consolidated financial statements. These are presented as text highlighted in orange boxes
on pages 89 to 150. The accounting policies below are applied throughout the financial statements.

Climate change
In the preparation of these consolidated financial statements, the Group has considered the potential effects of climate change, related regulatory
requirements and of the targets set out in the Group’s Strategic Report. Where relevant, these are included within assumptions and estimates used to
determine the carrying value of assets and liabilities at 31 March 2023. In particular, the Group has considered the impact on the future cash flows used
in the impairment assessment of its cash-generating unit (see note 20); and on its provisions for the costs of compliance with emission regulations (see
note 29).

Areas not considered to be key areas of judgement or contain estimation uncertainty that may be impacted by climate-related risks in the current
financial year are outlined below:

Recoverability of trade receivables

Climate related matters could impact the Group’s customers and subsequently the ability to pay their receivables. There have been no material climate-
related matters during the year that have impacted the recoverability of receivables, and the Group continues to monitor recoverability on an ongoing
basis and does not deem this to be a material risk or judgement.

Useful lives of assets

Climate related matters could reduce the useful life of assets for example due to physical or legal risks resulting in accelerated depreciation or amortisation
recognised each financial year. From a review of the useful lives, there is deemed to be no material impact from climate-related matters.

Inventory valuation
The value of inventories could be impacted by climate related matters, resulting in obsolescence or the need to recognise additional provisions. After
reviewing inventory valuation as at 31 March 2023, inventory is deemed appropriately valued when taking into consideration climate-related matters.

Basis of consolidation

Subsidiaries

The consolidated financial statements include Jaguar Land Rover Automotive plc and its subsidiaries. Subsidiaries are entities controlled by the Company.
Control exists when the Company (a) has power over the investee, (b) is exposed or has rights to variable return from its involvement with the investee
and (c) has the ability to affect those returns through its power to direct relevant activites of the investee. Relevant activites are those activities that
significantly affect an entity’s returns. In assessing control, potential voting rights that currently are exercisable are taken into account, as well as other
contractual arrangements that may influence control. Intercompany transactions and balances including unrealised profits are eliminated in full on
consolidation.

Joint ventures and associates (equity accounted investments)

A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. A joint venture
is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.

Associates are those entities over which the Group has significant influence. Significant influence is the power to participate in the financial and operating
policy decisions of the investee but is not control or joint control of those policies. Significant influence is presumed to exist when the Group holds
between 20 and 50 per cent of the voting power of the investee unless it can be clearly demonstrated that this is not the case.

The results, assets and liabilities of joint ventures and associates are incorporated in these financial statements using the equity method of accounting
as described in note 16.

Use of estimates and judgements

The preparation of financial statements in conformity with IFRS requires the use of judgements, estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Those that are significant to the Group are discussed separately on the next page.

A n n ua l Re p o r t 2022/23 85
Judgements

In the process of applying the Group’s accounting policies, management has made the following judgements, which have a significant effect on the
amounts recognised in the consolidated financial statements:

• Revenue recognition: The Group uses judgement to determine when control of its goods, primarily vehicles and parts, pass to the customer. This is
assessed with reference to indicators of control, including the risks and rewards of ownership and legal title with reference to the underlying terms
of the customer contract. Refer to note 5 for further information.

• Assessment of cash-generating units: The Group has determined that there is one cash-generating unit. This is on the basis that there are no smaller
groups of assets that can be identified with certainty that generate specific cash inflows that are independent of the inflows generated by other
assets or groups of assets. Refer to note 20 for further information.

• Alternative performance measures (APMs) and exceptional items: The Group exercises judgement in determining the adjustments to apply to IFRS
measurements in order to derive APMs that provide additional useful information on the underlying trends and in classifying items as exceptional
items. Refer to notes 3 and 4 for further information.

• Capitalisation of product engineering costs: The Group applies judgement in determining at what point in a vehicle programme’s life cycle the
recognition criteria under IAS 38 are satisfied, and in determining the nature of the cost capitalised. Refer to note 20 for further information.

• Deferred tax asset recognition: The extent to which deferred tax assets can be recognised is based on an assessment of the availability of future
taxable income against which the deductible temporary differences and tax loss carry-forwards can be utilised. The Group has exercised judgement
in determining the jurisdictions in which deferred tax assets have not been fully recognised. This has been done based on forecast profitability and
historical results of the companies in which the deferred tax assets arise. Refer to note 15 for further information.

Estimates and assumptions

The areas where assumptions and estimates are significant to the financial statements are as described below. The estimates and associated assumptions
are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the
basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ
from these estimates. Significant estimates are those that have a significant risk of resulting in a material adjustment to the carrying amounts of assets
and liabilities within the next year.

Significant estimates

Impairment of intangible and tangible fixed assets: The Group has intangible assets with indefinite lives and therefore tests annually whether intangible
and tangible fixed assets have suffered any impairment. Refer to note 20 for further information on the key assumptions and sensitivities used in the
testing of these assets for impairment.

Retirement benefit obligation: The present value of the post-employment benefit obligations depends on a number of factors and assumptions, including
discount rate, inflation and mortality assumptions. Refer to note 34 for details of these assumptions and sensitivities.

The financial statements also include estimates that may materially affect carrying amounts of assets and liabilities in the longer term. These are:

• Product warranties: refer to note 29 for further information.

• Depreciation (expected useful life): refer to note 19 for further information.

Cost recognition

Costs and expenses are recognised when incurred and are classified according to their nature.

Expenditures are capitalised, where appropriate, in accordance with the policy for internally generated intangible assets and represent employee costs
and other expenses incurred for product development undertaken by the Group.

Material and other cost of sales as reported in the consolidated income statement is presented net of the impact of realised foreign exchange relating
to derivatives hedging cost exposures.

Foreign currency

The Company has a functional currency of GBP. The presentation currency of the consolidated financial statements is GBP.

Transactions in currencies other than the functional currency of the entity are recorded at the exchange rate prevailing on the date of transaction.
Foreign currency denominated monetary assets and liabilities are remeasured into the functional currency at the exchange rate prevailing on the balance
sheet date. Exchange differences are recognised in the consolidated income statement as “Foreign exchange (loss)/gain and fair value adjustments”.

A n n ua l Re p o r t 2022/23 86
For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations (non-GBP functional currency)
are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the
period. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity.

Impairment

Property, plant and equipment and intangible assets

At each balance sheet date, the Group assesses whether there is any indication that any property, plant and equipment and intangible assets with finite
lives may be impaired. If any such impairment indicator exists, the recoverable amount of an asset is estimated to determine the extent of impairment,
if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash
generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, or earlier if there is an
indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs of sale and value in use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset (or cash generating unit) for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or
cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the consolidated income statement.

An asset (or cash-generating unit) impaired in prior years is reviewed at each balance sheet date to determine whether there is any indication of a
reversal of impairment losses recognised in prior years.

Litigation

Various legal proceedings, claims and governmental investigations are pending against the Group on a wide range of topics, including vehicle safety,
defective components, systems or general design defects, emissions and fuel economy, competition, alleged violations of law, labour, dealer, supplier and
other contractual relationships, intellectual property rights, product warranties and environmental matters. These proceedings seek recoveries including
for damage to property, breach of emissions regulations, misrepresentation, breach of collateral warranty and/or statutory guarantee, personal injuries
or wrongful death and in some cases include a claim for exemplary or punitive damages. Adverse decisions in one or more of these proceedings could
require the Group to pay substantial damages, or undertake service actions, recall campaigns or other costly actions.

Litigation is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Moreover, the cases and claims
against the Group are often derived from complex legal issues that are subject to differing degrees of uncertainty. A provision is established in connection
with pending or threatened litigation if it is probable there would be an outflow of funds and when the amount can be reasonably estimated. Since these
provisions represent estimates, the resolution of some of these matters could require the Group to make payments in excess of the amounts accrued or
may require the Group to make payments in an amount or range of amounts that could not be reasonably estimated.

The Group monitors the status of pending legal proceedings and consults with experts on legal and tax matters on a regular basis. As such, the provisions
for the Group’s legal proceedings and litigation may vary as a result of future developments in pending matters.

Further details on principal risks have been disclosed on page 46.

New accounting policy pronouncements

(a) Standards, revisions and amendments to standards and interpretations not significant to the Jaguar Land Rover Group and applied for the first time
in the year ending 31 March 2023

The following amendments and interpretations have been adopted by the Group in the year ending 31 March 2023:

• Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets – Onerous contracts – cost of fulfilling a contract;
• Amendments to IAS 16 Property, Plant and Equipment – Proceeds before intended use;
• Annual improvements to IFRS standards 2018-2020 cycle; and
• Amendments to IFRS 3 Business Combinations – Reference to the conceptual framework.

The adoption of these amendments and interpretations has not had a significant impact on the consolidated financial statements.

A n n ua l Re p o r t 2022/23 87
(b) Standards, revisions and amendments to standards and interpretations not yet effective and not yet adopted by the Group

The following pronouncements, issued by the IASB and endorsed by the UK, are not yet effective and have not yet been adopted by the Group. These
amendments are effective for annual report periods beginning on or after 1 January 2023:

• Amendments to IAS 1 Presentation of Financial Statements – disclosure of accounting policies;

• Amendments to IAS 12 Income Taxes - Assets and liabilities arising from a single transaction;
• Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – definition of accounting estimates;
• IFRS 17 Insurance Contracts;
• Amendments to IFRS 17 Insurance Contracts; and
• Initial application of IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments - Comparative Information.

The Group is currently assessing the impact of these pronouncements on the consolidated financial statements.

(c) Standards, revisions and amendments to standards and interpretations not yet endorsed by the UK and not yet adopted by the Group

The following pronouncements, issued by the IASB, have not yet been endorsed by the UK, are not yet effective and have not yet been adopted by the
Group:

• Amendments to IAS 1 Presentation of Financial Statements – Classification of liabilities as current or non-current;

• Amendments to IAS 1 Presentation of Financial Statements – Non-current liabilities with covenants;
• Amendments to IAS 1 Presentation of Financial Statements – Deferral of effective date amendment; and
• Amendments to IFRS 16 - Lease liability in a sale and leaseback.

A n n ua l Re p o r t 2022/23 88
3 A LT E R N A T I V E P E R F O R M A N C E M E A S U R E S

In reporting financial information, the Group presents alternative performance measures (“APMs”) that are not defined or specified under the requirements
of IFRS. The Group believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with
additional helpful information on the performance of the business. The APMs used within this Annual Report are defined below.

Alternative performance measure Definition

Adjusted EBITDA Adjusted EBITDA is defined as profit before: income tax expense; exceptional items; finance
expense (net of capitalised interest) and finance income; gains/losses on debt and unrealised
derivatives, realised derivatives entered into for the purpose of hedging debt, and equity or debt
investments held at fair value; foreign exchange gains/losses on other assets and liabilities,
including short-term deposits and cash and cash equivalents; share of profit/loss from equity
accounted investments; depreciation and amortisation.
Adjusted EBIT Adjusted EBIT is defined as for adjusted EBITDA but including share of profit/loss from equity
accounted investments, depreciation and amortisation.
Profit/(loss) before tax and Profit/(loss) before tax excluding exceptional items.
exceptional items
Free cash flow Net cash generated from operating activities less net cash used in automotive investing
activities, excluding investments in joint ventures, associate and subsidiaries and movements in
financial investments, and after finance expenses and fees paid. Financial investments are those
reported as cash and cash equivalents, short-term deposits and other investments, and equity or
debt investments held at fair value.
Total product and other investment Cash used in the purchase of property, plant and equipment, intangible assets, investments in
equity accounted investments and other trading investments, acquisition of subsidiaries and
expensed research and development costs.
Working capital Changes in assets and liabilities as presented in note 40 under cash flow from operating
activities before changes in assets and liabilities. This comprises movements in assets and
liabilities excluding movements relating to financing or investing cash flows or non-cash items
that are not included in adjusted EBIT or adjusted EBITDA.
Total cash and cash equivalents, deposits and Defined as cash and cash equivalents, short-term deposits and other investments, marketable
investments securities and any other items defined as cash and cash equivalents in accordance with IFRS.
Available liquidity Defined as total cash and cash equivalents, deposits and investments plus committed undrawn
credit facilities.
Net debt Total cash and cash equivalents, deposits and investments less total interest-bearing loans and
borrowings.
Retail sales Jaguar Land Rover retail sales represent vehicle sales made by dealers to end clients and include
the sale of vehicles produced by our Chinese joint venture, Chery Jaguar Land Rover Automotive
Company Ltd.
Wholesales Wholesales represent vehicle sales made to retailers or other external clients. The Group
recognises revenue on wholesales.

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

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

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

During the year ended 31 March 2023, the definition of ‘Free cash flow’ was amended to exclude investments in associates, joint ventures and subsidiaries.
The Group considers the amended Free cash flow measure to be more useful as it provides a clearer view of recurring cash flows that is not distorted by
the impact of one-off transactions. Free cash flow for years ended 31 March 2022 and 2021 prior to the change was £(1,156) million and £185 million
respectively.

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

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

A n n ua l Re p o r t 2022/23 89
Total cash and cash equivalents, deposits and investments and available liquidity are measures used by the Group to assess liquidity and the availability
of funds for future spend and investment.

Exceptional items are defined in note 4.

Reconciliations between these alternative performance measures and statutory reported measures are shown below and on the next page.

Adjusted EBIT and Adjusted EBITDA

Year ended 31 March (£ millions) Note 2023 2022 2021

Adjusted EBITDA 2,571 1,896 2,531

Depreciation and amortisation (2,042) (1,944) (1,976)
Share of profit/(loss) of equity accounted investments 16 15 (18) (41)
Adjusted EBIT 544 (66) 514
Foreign exchange on debt, derivatives and balance sheet
40 (14) (38) 249
revaluation*
Unrealised (loss)/gain on commodities 40 (163) 48 137
Finance income 13 67 9 11
Finance expense (net) 13 (507) (369) (251)
Fair value gain on equity investments 12 9 4 2
(Loss)/profit before tax and exceptional items (64) (412) 662
Exceptional items 4 161 (43) (1,523)
Profit/(loss) before tax 97 (455) (861)

*Comparatives for years ended 31 March 2022 and 2021 have been re-presented to align with the presentation change during the year ended 31
March 2023 to combine foreign exchange on debt, derivatives and balance sheet revaluation into a single line. This has not resulted in any change
to repor ted ‘(Loss)/profit before ta x and exceptional items’ or ‘Profit/(loss) before ta x’.

Free cash flow

2022 2021
Year ended 31 March (£ millions) 2023
restated* restated*
Net cash generated from operating activities 2,351 434 2,326
Purchases of property, plant and equipment (605) (712) (1,050)
Cash outflow relating to intangible asset expenditure (775) (481) (799)
Proceeds from sale of property, plant and equipment 7 7 8
Purchases of other assets acquired with view to resale (24) - -
Finance expenses and fees paid (495) (402) (313)
Finance income received 62 8 14
Free cash flow 521 (1,146) 186

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

Total product and other investments

Year ended 31 March (£ millions) Note 2023 2022 2021

Purchases of property, plant and equipment 605 712 1,050
Cash outflow relating to intangible asset expenditure 775 481 799
Engineering costs expensed 11 966 839 489
Investment in equity accounted investments - - 1
Purchases of other investments 7 4 4
Total product and other investments 2,353 2,036 2,343

A n n ua l Re p o r t 2022/23 90
Total cash and cash equivalents, deposits and investments

As at 31 March (£ millions) Note 2023 2022 2021

Cash and cash equivalents 22 3,687 4,223 3,778
Short-term deposits and other investments 105 175 1,004
Total cash and cash equivalents, deposits and investments 3,792 4,398 4,782

Available liquidity

As at 31 March (£ millions) Note 2023 2022 2021

Cash and cash equivalents 22 3,687 4,223 3,778
Short-term deposits and other investments 105 175 1,004
Committed undrawn credit facilities 27 1,520 2,015 1,938
Available liquidity 5,312 6,413 6,720

Net debt

As at 31 March (£ millions) Note 2023 2022 2021

Cash and cash equivalents 22 3,687 4,223 3,778
Short-term deposits and other investments 105 175 1,004
Interest-bearing loans and borrowings 27 (6,788) (7,597) (6,697)
Net debt (2,996) (3,199) (1,915)

The Group has the following volumes for retail and wholesales:

Year ended 31 March (units) 2023 2022 2021

Retail sales 354,662 376,381 439,588
Wholesales 321,362 294,182 347,632

4 EXCEPTIONAL ITEMS

Exceptional items are disclosed separately in the consolidated income statement and excluded from adjusted EBIT and adjusted EBITDA measures to
support the reader’s understanding of the performance of the Group.

The Group considers qualitative and quantitative factors to determine whether a transaction or event is exceptional, including the expected size, nature
and frequency of the transaction or event, and any precedent for similar items in previous years.

Items that are considered exceptional may include the following:

• Costs associated with significant restructuring events;

• Impairments or reversals of impairments arising from an impairment assessment of the Group’s cash-generating unit in accordance with IAS 36;
• Defined benefit past service costs or credits arising from scheme amendments; and
• Costs associated with provisions and related reversals arising from a significant one-off event not in the normal course of business.

A n n ua l Re p o r t 2022/23 91
The exceptional items recognised in the year ended 31 March 2023 comprise:
• £155 million in relation to a pension past service credit due to a change in inflation index from RPI to CPI;
• £5 million update to the exceptional item recognised during the years ended 31 March 2022 and 31 March 2021 in relation to the impact of the
Group’s Reimagine strategy; and
• £1 million update to the exceptional item recognised during the year ended 31 March 2022 in relation to customer liabilities arising from sanctions
imposed against Russia.

The exceptional items recognised in the year ended 31 March 2022 comprise:
• £43 million in relation to customer liabilities arising from sanctions imposed against Russia by many countries, preventing the shipment of vehicles
and certain parts to the market.
• Updates to the assessment of the impact of the Group’s Reimagine strategy relating to the exceptional items recognised during the year ended 31
March 2021.

The exceptional items recognised in the year ended 31 March 2021 comprise:
• Asset write-downs of £952 million in relation to models cancelled under the Group’s Reimagine strategy. See notes 19 and 20.
• Restructuring costs of £562 million comprising
• Costs of £534 million resulting from the Group’s Reimagine strategy comprising accruals to settle legal obligations on work performed to date
and provisions for redundancies and other third party obligations. See note 29. Included within the restructuring costs is a defined benefit past
service cost of £7 million. See note 34.
• Costs of £28 million resulting from a separate redundancy programme during the year. See note 29.
• An update of £9 million to the past service cost recognised due to the requirement to equalise male and female members’ benefits for the inequalities
within guaranteed minimum pension (‘GMP’) earned between 17 May 1990 and 5 April 1997 based on new information. See note 34.

There are no tax charges or credits arising from the exceptional items.

The tables below set out the exceptional items expense/(credit) recorded in the years ended 31 March 2023, 2022 and 2021 and the impact on the
consolidated income statement if these items were not disclosed separately as exceptional items.

Material and other

Year ended 31 March 2023 (£ millions) Other expenses Employee costs
cost of sales
Excluding exceptional items 4,777 2,524 14,008
Restructuring costs - employee and third party obligations (1) - (4)
Pension past service credit - (155) -
Other (1) - -
Including exceptional items 4,775 2,369 14,004

Material and other

Year ended 31 March 2022 (£ millions) Other expenses Employee costs
cost of sales
Excluding exceptional items 3,701 2,265 11,239
Restructuring costs - asset write-downs 7 - -
Restructuring costs - employee and third party obligations (73) (16) 82
Other 43 - -
Including exceptional items 3,678 2,249 11,321

Material and other

Year ended 31 March 2021 (£ millions) Other expenses Employee costs
cost of sales
Excluding exceptional items 3,589 2,141 12,335
Restructuring costs - asset write-downs 952 - -
Restructuring costs - employee and third party obligations 252 116 194
Pension past service cost - 9 -
Including exceptional items 4,793 2,266 12,529

A n n ua l Re p o r t 2022/23 92
5 REVENUE

Revenue recognition
Revenue comprises the consideration earned by the Group in respect of the output of its ordinary activities. It is measured based on the contract price,
which is the consideration specified in the contract with the customer and excludes amounts collected on behalf of third parties, and net of settlement
discounts, bonuses, rebates and sales incentives. The Group’s primary clients from the sale of vehicles, parts and accessories are retailers, fleet and
corporate clients, and other third-party distributors. The Group recognises revenue when it transfers control of a good or service to a customer, thus
evidencing the satisfaction of the associated performance obligation under that contract.

As described in note 39, the Group operates with a single automotive reporting segment, principally generating revenue from the sales of vehicles, parts
and accessories.

The sale of vehicles also can include additional services provided to the customer at the point of sale, for which the vehicle and services are accounted
for as separate performance obligations, as they are considered separately identifiable. The contract transaction price is allocated among the identified
performance obligations based on their stand-alone selling prices. Where the stand-alone selling price is not readily observable, it is estimated using an
appropriate alternative approach.

Significant
Nature, timing of satisfaction of performance obligations, and significant payment terms
revenue areas

Vehicles, parts, and The Group recognises revenue on the sale of vehicles, parts and accessories at the point of “wholesale”, which is
accessories (and other determined by the underlying terms and conditions of the contract with the customer as to when control transfers to
goods) them. The principle of control under IFRS 15 considers which party has the ability to direct the use of an asset and to
obtain substantially all of the remaining economic benefits.

Determining the transfer of control with regards to the sale of goods is primarily driven by:

• The point at which the risks and rewards of ownership pass to the customer;
• The point at which the customer takes physical possession of the good or product;
• The point at which the customer accepts the good or product;
• The point at which the Group has a present right to payment for the sale of the good or product; and
• The point at which legal title to the good or product transfers to the customer.

In the vast majority of cases, the sale of the relevant good is recognised at the point of dispatch (at release to the
carrier responsible for transportation to the customer) or the point of delivery to the customer, depending on individual
contractual arrangements.

In some instances, revenue may be recognised on a bill-and-hold basis where vehicles, for example, are sold to
the customer but are retained in the Group’s possession at a vehicle holding compound on behalf of the customer
ahead of being physically transferred to them at a future time. Such arrangements meet the criteria for bill-and-hold
arrangements under IFRS 15 to ensure that the customer has obtained the ultimate control of the product when
revenue is recognised.

The reason for the bill-and-hold is substantive (as the customer requests JLR to retain possession, usually due to a lack
of available space at their own premises), the vehicles are identifiable as separately belonging to the customer (on the
basis that each vehicle has a unique Vehicle Identification Number), the vehicle must be ready for physical transfer to the
customer (which it is, given that it is fully built and safety-checked off the manufacturing line) and the Group does not
have the ability to use the vehicle or direct it elsewhere.

The Group operates with financing partners across the world that provide wholesale financing arrangements to the retail
network for vehicle sales, which enables cash settlement to occur immediately (usually within two working days) for
purchases from the Group.

For the sale of parts and accessories, the Group typically receives payment in line with the invoice payment terms
stipulated and agreed with its clients, which are usually 30 days.

A n n ua l Re p o r t 2022/23 93
Significant
Nature, timing of satisfaction of performance obligations, and significant payment terms
revenue areas
Sales incentives The costs associated with providing sales support and incentives (variable marketing expense) are considered to be
variable components of consideration, thus reducing the amount of revenue recognised by the Group.

Under IFRS 15, the Group ensures that variable consideration is recognised to the extent of the amount to which it
expects to be entitled.

To meet this principle, the Group constrains its estimate of variable consideration to include amounts only to the extent
that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when
the associated uncertainty associated is subsequently resolved.

The Group estimates the expected sales incentive by market and considers uncertainties including competitor pricing,
ageing of dealer stock and local market conditions. The constraint on variable consideration is estimated with reference
to historical accuracy, current market conditions and a prospective assessment considering relevant geopolitical factors,
including global stock positions for both the Group and its third party dealer network reflecting the pipeline of vehicle
inventory for sale to end clients.

Variable consideration received for contracts with multiple performance obligations is allocated to all such obligations
only when applicable. For example, with the sale of a vehicle, the cost of the incentive provided is allocated entirely to
the vehicle as its purpose is to incentivise the sale of the vehicle rather than support any additional obligations.

Liabilities in relation to sales incentives are disclosed within liabilities for expenses in note 26.
Scheduled Scheduled maintenance contracts sold with a vehicle provide the end customer with the benefit of bringing their vehicle
maintenance to a dealership for the routine maintenance required to maintain compliance for warranty purposes.
contracts
The majority of plans sold by the Group are complimentary with the vehicle, thus payment is received at the same time
as the proceeds from the vehicle sale, at which point the amount is recognised as a contract liability based on the stand-
alone selling price, which is measured using a cost-plus approach.

Revenue is recognised over the life of the plan based on the expected performance of the services from the point of a
vehicle being retailed to an end customer and aligned to the expected profile of costs to fulfil those services based on
historical information.
Telematics Telematics features provide a service to the customer typically aligned to the warranty period of the vehicle, allowing a
vehicle to connect and interact with an end customer’s mobile phone.

The Group typically receives payment relating to telematics features at the same time as the proceeds from the vehicle
sale, at which point the amount is recognised as a contract liability based on the stand-alone selling price. For optional
features, this is measured at the observable option price and for standard-fit features is measured using a cost-plus
basis. The stand-alone selling price for telematics subscription renewals is measured at the renewal price offered to the
customer.

Revenue is recognised on a straight-line basis over the term of the service from the point of the vehicle being retailed to
an end customer in line with the expected costs to fulfil those services.
Warranty Vehicles and parts sold by the Group include a standard warranty to guarantee the vehicle complies with agreed-upon
considerations specifications for a defined period of time. Where the warranty offering to the end customer exceeds the standard
as a service market expectation for similar products, or provides a service in excess of the assurance that the agreed-upon
specification is met, the Group considers this to constitute a service to the end customer and therefore a separate
performance obligation. Revenue is recognised on a straight-line basis over the contractual period to which the warranty
service relates, up to which point it is recognised as a contract liability.
Repurchase Some contracts with clients include an option or obligation for the Group to repurchase the product sold (including
arrangements repurchasing a product originally sold as part of an amended product). Such instances are common in the Group’s
arrangements with third-party fleet clients or in contract manufacturing arrangements that the Group is party to.

The Group does not recognise revenue on the original sale, as it retains ultimate control of that product. The related
inventory continues to be recognised on the Group’s consolidated balance sheet. The consideration received from the
customer is treated as a liability.

Where the contractual repurchase price is less than the original sale price, the transaction is accounted for as a lease and
where the contractual repurchase price is more than or equal to the original sale price the transaction is accounted for
as a financing arrangement. Revenue recognised under such lease arrangements is outside of the scope of IFRS 15 and
instead is recognised in line with IFRS 16 Leases.

Revenue relating to the good or product is recognised only when it is sold by the Group with no repurchase obligation or
option attached.
Returns Vehicle sales do not typically include allowances for returns or refunds, although in some markets there is legislative
obligations, requirement for Jaguar Land Rover as an automotive manufacturer to repurchase or reacquire a vehicle if quality issues
refunds and arise that have been remedied a number of times and where the owner no longer wishes to own the vehicle as a result.
similar
obligations Regarding other goods, where rights of return may be prevalent, the Group estimates the level of returns based on
the historical data for specific products, adjusted as necessary to estimate returns for new products. Revenue is not
recognised for expected returns - instead the Group recognises a refund liability and asset where required.

A n n ua l Re p o r t 2022/23 94
The Group’s revenues are summarised as follows:

Year ended 31 March (£ millions) 2023 2022 2021

Revenue recognised for sales of vehicles, parts and accessories 22,209 17,159 18,775
Revenue recognised for services transferred 318 324 314
Revenue - other 872 762 753
Total revenue from contracts with clients 23,399 18,245 19,842
Realised revenue hedges (590) 75 (111)
Total revenue 22,809 18,320 19,731

“Revenue – other” includes sales of goods other than vehicles, parts and accessories.

Revenue disaggregation
The following table presents the Group’s revenue, disaggregated by primary geographical market, timing of revenue recognition and major product
categories. All revenue is generated from the Group’s single automotive operating segment.

Rest of Rest of Total

Year ended 31 March 2023 (£ millions) UK US China
Europe World Revenue
Revenue recognised for sales of vehicles, parts and
3,058 5,359 4,766 4,311 4,715 22,209
accessories
Revenue recognised for services transferred 114 105 9 13 77 318
Revenue - other 760 6 96 3 7 872
Total revenue from contracts with customers 3,932 5,470 4,871 4,327 4,799 23,399
Realised revenue hedges - (274) (290) - (26) (590)
Total revenue 3,932 5,196 4,581 4,327 4,773 22,809

Rest of Rest of Total

Year ended 31 March 2022 (£ millions) UK US China
Europe World Revenue
Revenue recognised for sales of vehicles, parts and
2,377 4,104 4,166 3,221 3,291 17,159
accessories
Revenue recognised for services transferred 108 101 7 24 84 324
Revenue - other 679 6 64 3 10 762
Total revenue from contracts with clients 3,164 4,211 4,237 3,248 3,385 18,245
Realised revenue hedges - 109 (61) - 27 75
Total revenue 3,164 4,320 4,176 3,248 3,412 18,320

Rest of Rest of Total

Year ended 31 March 2021 (£ millions) UK US China
Europe World Revenue
Revenue recognised for sales of vehicles, parts and
3,008 4,663 4,546 3,551 3,007 18,775
accessories
Revenue recognised for services transferred 126 95 5 10 78 314
Revenue - other 656 3 85 2 7 753
Total revenue from contracts with clients 3,790 4,761 4,636 3,563 3,092 19,842
Realised revenue hedges - (97) (75) - 61 (111)
Total revenue 3,790 4,664 4,561 3,563 3,153 19,731

Contract assets

As at 31 March (£ millions) 2023 2022 2021

Accrued income 40 39 26
Total contract assets 40 39 26

A n n ua l Re p o r t 2022/23 95
Contract liabilities

As at 31 March (£ millions) 2023 2022 2021

Ongoing service obligations 779 681 766
Liabilities for advances received 51 122 61
Total contract liabilities 830 803 827

“Ongoing service obligations” mainly relate to long-term service and maintenance contracts, extended warranties and telematics services. “Liabilities
for advances received” primarily relate to consideration received in advance from clients for products not yet wholesaled, at which point the revenue
will be recognised. “Ongoing service obligations” and “Liabilities for advances received” are both presented within “Other liabilities” in the consolidated
balance sheet.

The Group applies the practical expedient in IFRS 15.121 and does not disclose information about remaining performance obligations that have an
original expected duration of one year or less. This is because revenue resulting from those sales will be recognised in a short-term period. The services
included with the vehicle sale are to be recognised as revenues in subsequent years but represent an insignificant portion of expected revenues in
comparison.

Revenue that is expected to be recognised within five years related to performance obligations that are unsatisfied (or partially unsatisfied) amounted
to £830 million at 31 March 2023 (2022: £803 million, 2021: £827 million).

The movement in contract liabilities relates solely to revenue recognised from balances held at the beginning of the year of £440 million (2022: £385
million, 2021: £364 million) and increases due to cash received for performance obligations unsatisfied at the year end of £467 million (2022: £361
million, 2021: £295 million).

Revenue recognised in the year from performance obligations satisified in the previous year is £5 million (2022: £13 million, 2021: £100 million).

6 M AT E R I A L A N D O T H E R C O S T O F S A L E S

Year ended 31 March (£ millions) 2023 2022 2021

Changes in inventories of finished goods and work-in-progress (476) 279 469

Purchase of products for sale 1,331 1,172 1,029
Raw materials and consumables used 13,075 9,654 10,838
Realised purchase hedges 78 134 (1)
Total material and other cost of sales 14,008 11,239 12,335

7 EMPLOYEE NUMBERS AND COSTS

Year ended 31 March (£ millions) 2023 2022 2021

Wages and salaries - employee costs 1,826 1,626 1,545

Wages and salaries - agency costs 190 95 73
Total wages and salaries 2,016 1,721 1,618
Social security costs and benefits 334 312 288
Pension costs 174 232 235
Total employee costs 2,524 2,265 2,141

Employee costs in the year ended 31 March 2023 includes £nil (2022: £14 million, 2021: £188 million) credit in relation to employees placed on furlough
under the UK Coronavirus Job Retention Scheme.

Average employee numbers for the year ended 31 March

Non-agency Agency Total
2023
Manufacturing 17,086 2,434 19,520
Research and development 8,607 299 8,906
Other 9,592 361 9,953
Total employee numbers 35,285 3,094 38,379

A n n ua l Re p o r t 2022/23 96
 Average employee numbers for the year ended 31 March 2022 Non-agency Agency Total

Manufacturing 17,268 751 18,019

Research and development 7,893 394 8,287
Other 9,430 295 9,725
Total employee numbers 34,591 1,440 36,031

Average employee numbers for the year ended 31 March 2021 Non-agency Agency Total

Manufacturing 18,231 754 18,985

Research and development 8,158 556 8,714
Other 9,527 317 9,844
Total employee numbers 35,916 1,627 37,543

8 DIRECTORS’ EMOLUMENTS

Year ended 31 March (£) 2023 2022 2021

Directors' emoluments 3,975,221 4,001,943 5,509,867

(Decrease)/increase of long-term incentive scheme amounts
(10,420) (30,253) 479,444
receivable
Post-employment benefits - - 1,164,478
Compensation for loss of office 2,180,998 - -

The aggregate of emoluments received in the year and amounts accrued under the bonus schemes of the highest paid director was £2,458,509 (2022:
£3,652,103, 2021: £3,962,991), together with a cash allowance in lieu of pension and medical benefits of £nil (2022: £nil, 2021: £1,164,478). During the
year, the value of LTIP awards accrued has increased by £nil (2022: £nil, 2021: £479,444), which will become payable in future periods.

There were no directors who were members of a defined benefit pension scheme or a defined contribution scheme during the years ended 31 March
2023, 2022 and 2021.

LTIP cash payments received by directors during the year ended 31 March 2023 were £nil (2022: £686,000, 2021: £421,000).

9 OTHER INCOME

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

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

Government grants related to specific assets or costs that are capitalised into property plant and equipment or intangible assets are deducted from the
cost of the asset and amortised over the useful life of the asset. Government grants related to income are presented as an offset against the related
expenditure except in cases where there are no ongoing performance obligations to the Group, in which case the government grant is recognised as
other income in the period in which the Group becomes entitled to the grant. The terms and treatment of each grant is assessed on a case by case basis.
Details of the treatment of significant grants in the year are disclosed in note 9 and note 11.

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

Year ended 31 March (£ millions) 2023 2022 2021

Grant income 154 68 81
Commissions 29 17 20
Other 101 115 94
Total other income 284 200 195

During the year ended 31 March 2023, £53 million (2022: £42 million, 2021: £40 million) was recognised in “Other income” by a foreign subsidiary as
an incentive for continuing trading in that country for the foreseeable future. This includes amounts received as cash in the year and amounts that the
subsidiary is due to receive and for which there are no ongoing financial or operating conditions attached.

A n n ua l Re p o r t 2022/23 97
10 OTHER EXPENSES

Year ended 31 March (£ millions) Note 2023 2022 2021

Stores, spare parts and tools 105 86 88

Freight cost 630 485 499
Works, operations and other costs 2,335 1,722 1,714
Repairs 41 28 23
Power and fuel 182 158 72
Rent, rates and other taxes 41 37 31
Insurance 23 23 19
Write-down of property, plant and equipment 19 - 3 -
Write-down of intangible assets 20 - 9 40
Fair value adjustments in relation to assets held for sale 25 26 - -
Product warranty 885 748 706
Publicity 509 402 397
Total other expenses 4,777 3,701 3,589

11 E N G I N E E R I N G C O S T S C A P I TA L I S E D

Year ended 31 March (£ millions) 2023 2022 2021

Total engineering costs incurred 1,693 1,294 1,216

Engineering costs expensed (966) (839) (489)
Engineering costs capitalised 727 455 727
Interest capitalised in engineering costs capitalised 20 41 88
Research and development grants capitalised (76) (39) (46)
Total internally developed intangible additions 671 457 769

Engineering costs capitalised of £727 million (2022: £455 million, 2021: £727 million) comprises £327 million (2022: £236 million, 2021: £345 million)
included in “Employee costs” and £400 million (2022: £219 million, 2021: £382 million) included in “Other expenses” in the consolidated income
statement.

During the year ended 31 March 2023, £175 million (2022: £73 million, 2021: £87 million) was recognised by a UK subsidiary as a Research and
Development Expenditure Credit (“RDEC”) incentive on qualifying expenditure. During the year ended 31 March 2023, £76 million (2022: £39 million,
2021: £46 million) of the RDEC – the proportion relating to capitalised product development expenditure and other intangible assets – has been offset
against the cost of the respective assets. The remaining £99 million (2022: £34 million, 2021: £41 million) of the RDEC has been recognised as “Other
income”.

A n n ua l Re p o r t 2022/23 98
12 F O R E I G N E X C H A N G E A N D FA I R VA L U E A D J U S T M E N T S

Year ended 31 March (£ millions) 2023 2022 2021

Foreign exchange (loss)/gain and fair value adjustments on loans (209) (141) 314
Foreign exchange gain/(loss) on economic hedges of loans 203 91 (143)
Foreign exchange (loss)/gain on derivatives (14) - 14
Other foreign exchange gain 35 55 7
Realised gain on commodities 31 83 -
Unrealised (loss)/gain on commodities (163) 48 137
Fair value gain on equity investments 9 4 2
Foreign exchange and fair value adjustments (108) 140 331

13 FINANCE INCOME AND EXPENSE

Year ended 31 March (£ millions) 2023 2022 2021

Finance income 67 9 11
Total finance income 67 9 11

Interest expense on lease liabilities (54) (45) (44)

Total interest expense on financial liabilities other than lease liabilities (438) (365) (296)
measured at amortised cost
Interest (expense)/income on derivatives designated as a fair value
(12) 7 7
hedge of financial liabilities
Unwind of discount on provisions (25) (10) (16)
Interest capitalised 22 44 98
Total finance expense (net) (507) (369) (251)

The capitalisation rate used to calculate borrowing costs eligible for capitalisation was 5.4 per cent (2022: 4.6 per cent, 2021: 4.3 per cent).

A n n ua l Re p o r t 2022/23 99
14 P R O F I T/ ( L O S S ) B E F O R E TA X

Expense/(income) in profit/(loss) before tax includes the following:

Year ended 31 March (£ millions) 2023 2022 2021

Depreciation of right-of-use assets 87 87 94

Depreciation of property, plant and equipment 962 863 898
Amortisation of intangible assets (excluding internally generated
76 76 88
development costs)
Amortisation of internally generated development costs 917 918 896
Expenses related to short-term leases 10 10 9
Expenses related to low-value assets, excluding short-term leases of
12 9 7
low-value assets
Charge/(credit) for changes in lease payments arising from
- 1 (3)
COVID-19 rent concessions
Loss/(profit) on disposal of property, plant, equipment and software 10 (1) (1)
Exceptional items (161) 43 1,523
Auditor remuneration (see below) 7 5 6

The following table sets out the auditor remuneration for the year (rounded to the nearest £0.1 million):

Year ended 31 March (£ millions) 2023 2022 2021

Fees payable to the Company's auditor and its associates for the
audit of the parent company and consolidated financial statements 0.1 0.1 0.1
Fees payable to the Company's auditor and its associates for other
services:
- Audit of the Company's subsidiaries 6.8 4.2 4.5
Total audit fees 6.9 4.3 4.6
Audit-related assurance services 0.5 0.8 0.8
Other assurance services - 0.3 0.4
Total non-audit fees 0.5 1.1 1.2
Total audit and related fees 7.4 5.4 5.8

15 TA X AT I O N

Income tax expense comprises current and deferred taxes. Income tax expense is recognised in the consolidated income statement, except when
related to items that are recognised outside of profit or loss (whether in other comprehensive income or directly in equity) or where related to the initial
accounting for a business combination. In the case of a business combination, the tax effect is included in the accounting for the business combination.
Current income taxes are determined based on the respective taxable income of each taxable entity and tax rules applicable for respective tax
jurisdictions.

Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences between the carrying values of assets and
liabilities and their respective tax bases, and unutilised tax losses, depreciation carry-forwards and tax credits. Such deferred tax assets and liabilities are
computed separately for each taxable entity and for each taxable jurisdiction. Deferred tax assets are recognised to the extent that it is probable that
future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused
tax credits could be utilised. The future profitability is based on the business plan for each respective entity within the Group. The carrying amount
of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the year when the asset is realised or the liability is
settled, based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

A n n ua l Re p o r t 2022/23 100
Current and deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net
basis.

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income will be available
against which the deductible temporary differences and tax loss carry-forwards can be utilised.

Tax provisions are recognised for uncertain tax positions where a risk of an additional tax liability has been identified and it is probable that the Group
will be required to settle that tax. Measurement is dependent on management’s expectations of the outcome of decisions by tax authorities in the
various tax jurisdictions in which the Group operates. This is assessed on a case-by-case basis using in-house experts, professional firms and previous
experience. Where no provision is required the exposure is disclosed as a contingent liability in note 35 unless the likelihood of an outflow of economic
benefits is remote.

Judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions.

Amounts recognised in the consolidated income statement:

Year ended 31 March (£ millions) 2023 2022 2021

Current tax expense
Current year 257 226 155
Adjustments for prior years 11 (5) 2
Current tax expense 268 221 157
Deferred tax (credit)/expense
Origination and reversal of temporary differences (121) 149 92
Adjustments for prior years 9 (3) (12)
Rate changes 1 - 2
Deferred tax (credit)/expense (111) 146 82
Total income tax expense 157 367 239

Amounts recognised in the consolidated statement of other comprehensive income:

Year ended 31 March (£ millions) 2023 2022 2021

Deferred tax (credit)/expense on actuarial gains/losses on retirement
(3) 134 (143)
benefits
Deferred tax credit on change in fair value of cash flow hedges 113 (170) 103
Deferred tax credit on rate changes (6) (77) -
104 (113) (40)
Total tax expense 261 254 199

Reconciliation of effective tax rate:

Year ended 31 March (£ millions) 2023 2022 2021

Loss for the year (60) (822) (1,100)
Total income tax expense 157 367 239
Profit/(loss) before tax 97 (455) (861)
Income tax expense/(credit) using the tax rates applicable to
59 (20) (131)
individual entities of 60.8% (2022: 4.4%, 2021: 15.2%)
Non-deductible expenses 17 33 62
Unrecognised or written-down deferred tax assets 34 331 285
Changes in tax rates 1 - 2
Overseas unremitted earnings 29 28 23
Tax on share of profit of equity accounted investments (3) 3 8
Under/(over) provided in prior years 20 (8) (10)
Total income tax expense 157 367 239

A n n ua l Re p o r t 2022/23 101
The net underlying statutory tax rate represents the blended average of the tax rates suffered on profits and losses earned in our various countries of
operation. The current position reflects the fact that statutory tax rates applicable in profitable non-UK subsidiaries are higher than the UK tax rate
applied to UK losses.

Included within “Unrecognised or written-down deferred tax assets” for the year ended 31 March 2023 is a charge of £34 million as a result of the
inability to fully recognise UK deferred tax assets arising in the year. The “Under provided in prior years” charge of £20 million arises as a result of the
finalisation of prior year tax submissions with global tax authorities and the conclusion of certain tax risks.

Included within “Unrecognised or written-down deferred tax assets” for the year ended 31 March 2022 is a charge of £331 million as a result of the
inability to fully recognise UK deferred tax assets arising in the year. The “Over provided in prior years” credit of £8 million arises as a result of the
finalisation of prior year tax submissions with global tax authorities and the conclusion of certain tax risks.

Included within “Non-deductible expenses” for the year ended 31 March 2021 is a charge of £45 million relating to the accounting write-down of assets
not qualifying for tax relief. The charge of £285 million in relation to “Unrecognised or written-down deferred tax assets” arises as a result of the inability
to fully recognise UK deferred tax assets arising in the year. The “Over provided in prior years” credit of £10 million arises as a result of the finalisation of
prior year tax submissions with global tax authorities.

Impact of Future Rate Changes

Since 1 April 2020, the UK corporation tax rate applicable has been at 19 per cent. A change to the main UK corporation tax rate from 19 to 25 percent
with effect from 1 April 2023 was announced in the Budget on 3 March 2021, and was substantively enacted on 24 May 2021. Accordingly, UK deferred
tax has been provided at a rate of 25 per cent on assets (2022: 25 per cent, 2021: 19 per cent) and 25 per cent on liabilities (2022: 25 per cent, 2021:
19 per cent), recognising the applicable tax rate at the point when the timing difference is expected to reverse.

Deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities for the year ended 31 March 2023 are as follows:

Recognised Recognised in other Reclassified from

Opening Foreign Closing
(£ millions) in profit or comprehensive other equity
balance exchange balance
loss income reserves
Deferred tax assets
Property, plant & equipment 1,088 (336) - - - 752
Expenses deductible in future periods 228 (24) - - - 204
Derivative financial instruments 125 30 (108) (9) - 38
Unrealised profit in inventory 73 45 - - - 118
Tax loss 19 214 - - - 233
Other - 202 - - - 202
Total deferred tax asset 1,533 131 (108) (9) - 1,547
Deferred tax liabilities
Intangible assets 1,090 (49) - - - 1,041
Overseas unremitted earnings 105 15 - - - 120
Compensated absence and retirement
107 54 (4) - - 157
benefits
Total deferred tax liability 1,302 20 (4) - - 1,318
Presented as deferred tax asset* 336 357
Presented as deferred tax liability* (105) (128)

*For balance sheet presentation purposes, deferred ta x assets and deferred ta x liabilities are of fset to the extent that they relate to the same
ta xation authority and are expected to be settled on a net basis.

At 31 March 2023, deferred tax assets of £357 million (2022: £336 million, 2021: £397 million) have been recognised in relation to deductible temporary
differences, including unused tax losses, on the basis that it is probable that future taxable profits will be available against which those deductible
temporary differences can be utilised.

At 31 March 2023 the group had unused tax losses and other temporary differences amounting to £5,442 million (2022: £3,746 million, 2021: £2,693
million) for which no deferred tax asset had been recognised on the basis of either forecast profitability, or significant cumulative tax losses to date, in
those companies in which the deferred tax assets arise. These tax losses are due to expire as follows:

As at 31 March (£ millions) 2023 2022 2021

No expiry 5,442 3,742 2,676
2027 or later - 4 17

All deferred tax assets and deferred tax liabilities at 31 March 2023, 2022 and 2021 are presented as non-current.

A n n ua l Re p o r t 2022/23 102
Significant components of deferred tax assets and liabilities for the year ended 31 March 2022 were as follows:

Recognised Recognised in other Reclassified from

Opening Foreign Closing
(£ millions) in profit or comprehensive other equity
balance exchange balance
loss income reserves
Deferred tax assets
Property, plant & equipment 767 321 - - - 1,088
Expenses deductible in future periods 260 (43) - - 11 228
Derivative financial instruments (24) (28) 205 (28) - 125
Retirement benefits 72 20 (92) - - -
Unrealised profit in inventory 103 (30) - - - 73
Tax loss 65 (46) - - - 19
Other 51 (51) - - - -
Total deferred tax asset 1,294 143 113 (28) 11 1,533
Deferred tax liabilities
Intangible assets 902 188 - - - 1,090
Overseas unremitted earnings 111 (6) - - - 105
Compensated absence and retirement
- 107 - - - 107
benefits
Total deferred tax liability 1,013 289 - - - 1,302
Presented as deferred tax asset* 397 336
Presented as deferred tax liability* (116) (105)

*For balance sheet presentation purposes, deferred ta x assets and deferred ta x liabilities are of fset to the extent that they relate to the same
ta xation authority and are expected to be settled on a net basis.

Significant components of deferred tax assets and liabilities for the year ended 31 March 2021 were as follows:

Recognised Recognised in other Reclassified from

Opening Foreign Closing
(£ millions) in profit or comprehensive other equity
balance exchange balance
loss income reserves
Deferred tax assets
Property, plant & equipment 635 132 - - - 767
Expenses deductible in future periods 377 (100) - - (17) 260
Derivative financial instruments 70 12 (103) (3) - (24)
Retirement benefits (74) 3 143 - - 72
Unrealised profit in
125 (22) - - - 103
inventory
Tax loss 219 (153) - - (1) 65
Other 145 (94) - - - 51
Total deferred tax asset 1,497 (222) 40 (3) (18) 1,294
Deferred tax liabilities
Intangible assets 1,043 (141) - - - 902
Overseas unremitted earnings 110 1 - - - 111
Total deferred tax liability 1,153 (140) - - - 1,013
Presented as deferred tax asset* 523 397
Presented as deferred tax liability* (179) (116)

*For balance sheet presentation purposes, deferred ta x assets and deferred ta x liabilities are of fset to the extent that they relate to the same
ta xation authority and are expected to be settled on a net basis.

A n n ua l Re p o r t 2022/23 103
 16 INVESTMENTS IN EQUITY ACCOUNTED INVESTEES

An interest in an associate or joint venture is accounted for using the equity method from the date the investee becomes an associate or a joint venture
and is recognised initially at cost. The carrying value of investments in associates and joint ventures includes goodwill identified on date of acquisition,
net of any accumulated impairment losses. The consolidated financial statements include the Group’s share of profits or losses, other comprehensive
income and equity movements of equity accounted investments, from the date that joint control or significant influence commences until the date
that joint control or significant influence ceases. When the Group’s share of losses exceeds its interest in an equity accounted investment, the carrying
amount of that interest (including any long-term interests in the nature of net investments) is reduced to nil and the recognition of further losses is
discontinued except to the extent that the Group has incurred constructive or legal obligations or has made payments on behalf of the investee.

When the Group transacts with a joint venture or associate of the Group, profits and losses are eliminated to the extent of the Group’s interest in its joint
venture or associate.

Dividends are recognised when the right to receive payment is established.

Impairment of equity accounted investments

The requirements of IAS 28 Investments in Associates and Joint ventures are applied to determine whether it is necessary to recognise any impairment
loss with respect to the Group’s investment in a joint venture or an associate. When necessary, the entire carrying amount of the investment (including
goodwill) is tested for impairment in accordance with IAS 36 Impairment of assets as a single asset by comparing its recoverable amount (the higher
of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the
investment. Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable amount of the investment
subsequently increases.

(A) Associates

Details of the Group’s associates as at 31 March 2023 are as follows:

Principal place of
Name of Proportion of
business and country of Principal activity Registered office address
investment voting rights
incorporation
Jaguar Cars Finance 280 Bishopsgate, London, EC2M 4RB,
49.9% England & Wales Non-trading
Limited England
Business and
84 Kirkland Avenue, Ilford, Essex, England,
Synaptiv Limited 33.3% England & Wales domestic software
IG5 0TN
development
Holding company and
Driveclubservice Pte. 22 Sin Ming Lane, #06-76, Midview City,
25.1% Singapore mobility application
Limited Singapore 573969
owner/licensor
Unit A, 9/F, D2 Place ONE, 9 Cheung Yee
Driveclub Limited 25.8% Hong Kong Vehicle leasing
Street, Lai Chi Kok, Kowloon, Hong Kong
Manufacture and
development of The Priory Barn Priory Road, Wolston,
ARC V Limited 15.0% England & Wales
electrified vehicle Coventry, United Kingdom, CV8 3FX
technology

Except for Driveclub Limited and ARC V Limited, the proportion of voting rights disclosed in the table above is the same as the Group’s interest in the
ordinary share capital of each undertaking.

The Group has no material associates as at 31 March 2023. The aggregate summarised financial information in respect of Group’s immaterial associates
that are accounted for using the equity method is set out below.

As at 31 March (£ millions) 2023 2022 2021

Carrying amount of the Group's interests in associates - - -

Year ended 31 March (£ millions) 2023 2022 2021

Group’s share of profit and total comprehensive income in associates - - -

A n n ua l Re p o r t 2022/23 104
(B) Joint ventures

Details of the Group’s material joint venture as at 31 March 2023 are as follows:

Name of Proportion of Principal place of business and Principal

Registered office address
investment voting rights country of incorporation activity
Room 1102, Binjiang
International Plaza, No
Chery Jaguar Land Manufacture
88 Tonggang Road,
Rover Automotive 50.0% China and assembly
Changshu Economic and Technical
Company Ltd. of vehicles
Development Zone, Suzhou City,
Jiangsu Province, China

Chery Jaguar Land Rover Automotive Company Ltd. is a limited liability company whose legal form confirms separation between the parties to the
joint arrangement. There is no contractual arrangement or any other facts or circumstances that indicate that the parties to the joint control of the
arrangement have rights to the assets or obligations for the liabilities relating to the arrangement. Accordingly, Chery Jaguar Land Rover Automotive
Company Ltd. is classified as a joint venture. Chery Jaguar Land Rover Automotive Company Ltd. is not publicly listed.

The joint venture is accounted for using the equity method and is a private company and there are no quoted market prices available for its shares.

The following tables sets out the summarised financial information of the Group’s individually material joint venture, Chery Jaguar Land Rover Automotive
Company Ltd., after adjusting for material differences in accounting policies:

As at 31 March (£ millions) 2023 2022 2021

Cash and cash equivalents 396 391 323
Current financial liabilities (excluding trade and other payables and
(339) (447) (501)
provisions)
Non-current financial liabilities (excluding trade and other payables
(71) (39) (5)
and provisions)
Current assets 649 629 566
Current liabilities (1,175) (1,380) (1,364)
Non-current assets 1,266 1,443 1,446
Non-current liabilities (74) (42) (13)
Net assets of material joint venture 666 650 635

Year ended 31 March (£ millions) 2023 2022 2021

Revenue 1,683 1,669 1,820
Profit/(loss) for the year 30 (36) (83)
Total comprehensive income/(expense) 30 (36) (83)
The above total comprehensive income/(expense) includes the
following:
Depreciation and amortisation (176) (181) (201)
Interest income 10 5 7
Interest expense (net) (14) (17) (20)
Income tax (charge)/credit (11) 20 31

A reconciliation of the summarised financial information to the carrying amount of the Group’s material joint venture recognised in the consolidated
balance sheet is given below:

As at 31 March (£ millions) 2023 2022 2021

Net assets of material joint venture 666 650 635
Share of net assets of material joint venture 333 325 318
Other consolidation adjustments (5) (5) (3)
Carrying amount of the Group's material joint venture 328 320 315

A n n ua l Re p o r t 2022/23 105
As at 31 March 2023, an adjustment of £5 million (2022: £5 million, 2021: £3 million) has been made to derecognise profit that has not yet been realised
on goods sold by the Group to Chery Jaguar Land Rover Automotive Company Ltd.

During the year ended 31 March 2023, the Group received a dividend from Chery Jaguar Land Rover Automotive Company Ltd. of £nil (2022: £nil, 2021:
£nil).

Details of the Group’s immaterial joint ventures as at 31 March 2023 are as follows:

Name of Proportion of Principal place of business and Principal

Registered office address
investment voting rights country of incorporation activity
Vehicle
Jaguar Land Rover Emil Frey Strasse, 5745 Safenwill
30.0% Switzerland sales and
Switzerland Ltd
distribution
Inchcape JLR Europe Vehicle 22a St James’s Square, London, United
30.0% UK
Limited distribution Kingdom, SW1Y 5LP

The summarised financial information in respect of the Group’s immaterial joint ventures accounted for using the equity method is set out below:

As at 31 March (£ millions) 2023 2022 2021

Carrying amount of the Group’s interests in immaterial joint ventures 1 1 1

Year ended 31 March (£ millions) 2023 2022 2021

Group’s share of profit and total comprehensive income of immaterial
- - -
joint ventures

(C) Summary of carrying amount of the Group’s investment in equity accounted investees

As at 31 March (£ millions) 2023 2022 2021

Carrying amount of material joint venture 328 320 315
Carrying amount of immaterial joint ventures 1 1 1
Carrying amount of immaterial associates - - -
Carrying amount of the Group's interests in equity accounted
329 321 316
investees

Year ended 31 March (£ millions) 2023 2022 2021

Share of profit/(loss) of material joint venture 15 (18) (41)
Share of profit/(loss) of immaterial joint ventures - - -
Share of profit/(loss) of immaterial associates - - -
Share of profit/(loss) of equity accounted investees 15 (18) (41)

Year ended 31 March (£ millions) 2023 2022 2021

Currency translation differences – material joint venture (7) 26 (11)
Share of other comprehensive (expense)/income of equity
(7) 26 (11)
accounted investees

A n n ua l Re p o r t 2022/23 106
17 OTHER NON-CURRENT INVESTMENTS

The Group’s other investments comprise equity investments of 10 per cent or less of the ordinary share capital of the investee companies and are
designated as fair value through profit and loss financial instruments.

As at 31 March (£ millions) 2023 2022 2021

Other investments 43 30 22
Total other non-current investments 43 30 22

During the year ended 31 March 2023, the Group invested £7 million (2022: £4 million, 2021: £4 million) in other investments. A fair value gain of £9
million was recognised during the year (2022: gain of £4 million, 2021: gain of £2 million).

The Group has no additional rights or influence over any of these equity investments other than the voting rights attached to the ordinary share capital,
and during the year ended 31 March 2023 no dividends were received (2022, 2021: no dividends).

Disclosure of the valuation techniques applied in calculating the fair value of these other non-equity accounted investments is included in note 37(A).

18 OTHER FINANCIAL ASSETS

As at 31 March (£ millions) 2023 2022 2021

Non-current
Restricted cash 9 10 8
Derivative financial instruments 71 98 249
Warranty reimbursement and other receivables 54 63 73
Other 15 14 11
Total non-current other financial assets 149 185 341
Current
Restricted cash 11 13 12
Derivative financial instruments 101 185 281
Warranty reimbursement and other receivables 85 72 70
Accrued income 40 39 26
Other 138 85 88
Total current other financial assets 375 394 477

Other financial assets pledged as collateral against borrowings are disclosed in note 27.

A n n ua l Re p o r t 2022/23 107
19 P R O P E R T Y, P L A N T A N D E Q U I P M E N T

Property, plant and equipment is stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment, if any. Land
is not depreciated.

Cost includes purchase price, non-recoverable taxes and duties, labour cost and direct overheads for self-constructed assets and other direct costs
incurred up to the date the asset is ready for its intended use.

Interest cost incurred for constructed assets is capitalised up to the date the asset is ready for its intended use, based on borrowings incurred specifically
for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset.

Depreciation is charged on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives of the assets are as follows:

Class of property, plant and equipment Estimated useful life (years)

Buildings 10 to 40
Plant and equipment 3 to 30
Vehicles 3 to 10
IT equipment 3 to 10
Fixtures and fittings 3 to 20

The depreciation period for property, plant and equipment with finite useful lives is reviewed at least at each year end. Changes in expected useful lives
are treated as changes in accounting estimates.

Assets held under leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant
lease. Freehold land is measured at cost and is not depreciated. Residual values are reassessed on an annual basis.

Depreciation is not recorded on assets under construction until construction and installation are complete and the asset is ready for its intended use.
Assets under construction include capital advances. Depreciation is not recorded on heritage assets as the Group considers their residual value to
approximate their cost.

An item of property, plant and equipment is derecognised on disposal or when it is withdrawn from use and no future economic benefits are expected
from its disposal. Any gain or loss arising from derecognition is included in profit or loss.

An annual review of the carrying value of heritage assets is performed as the assets are held at cost and not depreciated. Any write-down in the carrying
value of heritage assets is recognised immediately in the consolidated income statement.

A n n ua l Re p o r t 2022/23 108
 Fixtures
Land and Plant and IT Heritage Under
(£ millions) Vehicles and Total
buildings equipment equipment vehicles construction
fittings
Cost
Balance at 1 April 2020 2,556 9,659 16 189 135 53 732 13,340
Additions - - 6 - 2 - 828 836
Transfers 27 606 - - - - (633) -
Disposals (5) (15) (3) (1) (3) (4) - (31)
Impairment - asset write-downs - - - - - - (237) (237)
Foreign currency translation (22) (28) - (1) (1) - 1 (51)
Balance at 31 March 2021 2,556 10,222 19 187 133 49 691 13,857
Additions 1 - - 12 11 - 657 681
Transfers 52 1,057 1 - - - (1,110) -
Disposals (1) (84) (4) (5) (8) (1) - (103)
Impairment - asset write-downs - - - - - - (7) (7)
Assets classified as held for sale (8) - - - - (2) - (10)
Foreign currency translation - 1 (1) - (2) - - (2)
Balance at 31 March 2022 2,600 11,196 15 194 134 46 231 14,416
Additions - - - 18 6 - 506 530
Transfers 63 286 - - - - (349) -
Transfers to right-of-use assets (13) - - - - - - (13)
Disposals - (217) (1) - (1) (4) - (223)
Assets classified as held for sale (64) - - - - (2) - (66)
Foreign currency translation 17 21 - 1 - - - 39
Balance at 31 March 2023 2,603 11,286 14 213 139 40 388 14,683

Depreciation and impairment

Balance at 1 April 2020 401 5,914 7 94 79 31 - 6,526
Depreciation charge for the year 110 761 4 15 8 - - 898
Disposals (3) (15) (2) (1) (3) - - (24)
Impairment - asset write-downs 4 2 - - - - - 6
Foreign currency translation (2) (5) - (2) (1) - - (10)
Balance at 31 March 2021 510 6,657 9 106 83 31 - 7,396
Depreciation charge for the year 111 728 2 14 8 - - 863
Disposals (1) (84) (1) (5) (6) - - (97)
Assets classified as held for sale (6) - - - - - - (6)
Impairment - asset write-downs - - - - - 3 - 3
Foreign currency translation - - - 2 2 - - 4
Balance at 31 March 2022 614 7,301 10 117 87 34 - 8,163
Depreciation charge for the year 116 824 - 15 7 - - 962
Disposals - (206) (1) - (1) - - (208)
Assets classified as held for sale (6) - - - - - - (6)
Foreign currency translation 4 7 2 - - - - 13
Balance at 31 March 2023 728 7,926 11 132 93 34 - 8,924
Net book value
At 31 March 2021 2,046 3,565 10 81 50 18 691 6,461
At 31 March 2022 1,986 3,895 5 77 47 12 231 6,253
At 31 March 2023 1,875 3,360 3 81 46 6 388 5,759

As part of the Group’s review of the carrying value of property, plant and equipment, £nil (2022: £3 million, 2021: £nil) of heritage vehicles have been
written down and recognised as an expense within “Other expenses”.

Asset write-downs for the year ending 31 March 2023 include £nil (2022: £7 million, 2021: £243 million) in relation to the Group’s Reimagine strategy.
The write-down expense was recognised in ‘exceptional items’ in the consolidated income statement.

A n n ua l Re p o r t 2022/23 109
20 I N TA N G I B L E A S S E T S

Intangible assets purchased, including those acquired in business combinations, are measured at acquisition cost, which is the fair value on the date of
acquisition, where applicable, less accumulated amortisation and accumulated impairment, if any. Intangible assets with indefinite lives are reviewed
annually to determine whether an indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite
to finite is made on a prospective basis. For intangible assets with finite lives, amortisation is provided on a straight-line basis over the estimated useful
lives of the intangible assets as per the estimated amortisation periods below:

Class of intangible asset Estimated amortisation period (years)

Software 2 to 8
Patents and technological know-how 2 to 12
Customer related – retailer network 20
Intellectual property rights and other intangibles 3 to indefinite

The amortisation for intangible assets with finite useful lives is reviewed at least at each year end. Changes in expected useful lives are treated as
changes in accounting estimates.

Capital work-in-progress includes capital advances. Customer-related intangibles acquired in a business combination consist of dealer networks.
Intellectual property rights and other intangibles mainly consist of brand names, which are considered to have indefinite lives due to the longevity of the
brands.

Internally generated intangible assets

Research costs are charged to the consolidated income statement in the year in which they are incurred.

Product engineering costs incurred on new vehicle platforms, engines, transmission and new products are recognised as intangible assets – when
feasibility has been established, the Group has committed technical, financial and other resources to complete the development and it is probable that
the asset will generate future economic benefits. The costs capitalised include the cost of materials, direct labour and directly attributable overhead
expenditure incurred up to the date the asset is available for use. Interest cost incurred is capitalised up to the date the asset is ready for its intended use,
based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been
incurred for the asset. Product engineering cost is amortised over the life of the related product, being a period of between two and ten years. Capitalised
development expenditure is measured at cost less accumulated amortisation and accumulated impairment loss, if any. Amortisation is not recorded on
product engineering in progress until development is complete.

The Group undertakes significant levels of research and development activity, and for each vehicle programme a periodic review is undertaken. The
Group applies judgement in determining at what point in a vehicle programme’s life cycle the recognition criteria under IAS 38 are satisfied. If a later point
had been used then this would have had the impact of reducing the amounts capitalised as product engineering costs.

The Group applies judgement in determining the proportion of central overhead allocated within development costs that are capitalised.

A n n ua l Re p o r t 2022/23 110
 Intellectual
Patents and property Product Product
Customer
(£ millions) Software technological rights development development Total
related
know-how and other - completed - in progress
intangibles
Cost
Balance at 1 April 2020 802 147 61 652 7,572 2,472 11,706
Additions - externally purchased 73 - - - - - 73
Additions - internally developed - - - - - 769 769
Transfers - - - - 1,404 (1,404) -
Disposals (1) - - - 10 - 9
Impairment - asset write-downs - - - - - (749) (749)
Balance at 31 March 2021 874 147 61 652 8,986 1,088 11,808
Additions - externally purchased 25 - - - - - 25
Additions - internally developed - - - - - 457 457
Transfers - - - - 987 (987) -
Disposals (5) - - (2) (955) - (962)
Impairment - asset write-downs - - - - - (9) (9)
Balance at 31 March 2022 894 147 61 650 9,018 549 11,319
Additions - externally purchased 56 - - - - - 56
Additions - internally developed - - - - - 671 671
Transfers - - - - 473 (473) -
Disposals (3) - - - (828) - (831)
Foreign exchange 1 - - - - - 1
Balance at 31 March 2023 948 147 61 650 8,663 747 11,216

Amortisation and impairment

Balance at 1 April 2020 527 147 42 165 4,547 - 5,428
Amortisation for the year 82 - 2 4 896 - 984
Disposals (1) - - - 10 - 9
Balance at 31 March 2021 608 147 44 169 5,453 - 6,421
Amortisation for the year 71 - 2 3 918 - 994
Disposals (5) - - (2) (955) - (962)
Balance at 31 March 2022 674 147 46 170 5,416 - 6,453
Amortisation for the year 71 - 2 3 917 - 993
Disposals (2) - - - (828) - (830)
Balance at 31 March 2023 743 147 48 173 5,505 - 6,616
Net book value
At 31 March 2021 266 - 17 483 3,533 1,088 5,387
At 31 March 2022 220 - 15 480 3,602 549 4,866
At 31 March 2023 205 - 13 477 3,158 747 4,600

Asset write-downs for the year ending 31 March 2023 include £nil (2022: £nil, 2021: £709 million) in relation to the Group’s Reimagine strategy. The
Reimagine related write-down expense was recognised in ‘exceptional items’ in the consolidated income statement.

During the year ended 31 March 2023, central overheads of £77 million (2022: £52 million, 2021: £80 million) have been capitalised within product
development - in progress.

Impairment testing
In accordance with prevailing accounting standards, management have performed an annual impairment assessment as at 31 January 2023, using the
value in use (“VIU”) approach to determine the recoverable value of the cash-generating unit (“CGU”). The date of the assessment was changed from
that of the prior year (31 March) to better align with the business plan cycle. A subsequent assessment has been performed to the year-end date which
has determined that there have been no events or changes in circumstances which would have changed the outcome of the assessment performed as
at 31 January.

The directors are of the view that the operations of the Group, excluding equity accounted investments, represent a single CGU. This is because the
degree of integrated development and manufacturing activities is such that no one group of assets has been determined to generate cash inflows that
are independent of any other.

The impairment assessment determined that the CGU recoverable value exceeded the carrying amount by £1.5 billion (2022: £0.6 billion, 2021: £2.7
billion) and therefore no impairment was identified. The increase in headroom has largely been driven by the improved performance experienced in
the latter part of the year. It was further determined that this increase did not require the reversal of the previously recorded impairment loss as the
underlying drivers for the increased headroom do not support a reversal, after considering the unwind of the discount rate and the impact of depreciation
and amortisation of impaired assets.

A n n ua l Re p o r t 2022/23 111
The Group has considered it appropriate to undertake the impairment assessment with reference to the Group approved business plan that was in effect
as at the assessment date. The business plan includes a five-year cash flow forecast and contains growth rates that are primarily a function of the Group’s
Cycle Plan assumptions, historical performance and management’s expectation of future market developments through to 2027/28.

In estimating the future cash flows management have given due consideration to the inherent uncertainty of forecast information and have adjusted some
of the assumptions in the business plan to take into account possible variations in the amount or timing of the cashflows. In doing so, management has
incorporated the following risks into the VIU, as well as other risks outlined on pages 46 to 49, that may impact future cashflows:

• execution risks associated with our ‘Reimagine’ strategy and the transition to electrified powertrain, with the supporting transformation plan ‘Refocus
2.0’, detailed on pages 23 to 43, which includes a dedicated environmental sustainability strategy – ‘Planet Regenerate’;
• near-term supply chain challenges related to global chip shortages which has continued to impact the Group in FY23; and
• economical and geopolitical factors increasing inflationary pressures, driving up material costs in particular.

Climate risk
The Group recognises that the potential impact of climate risk to areas such as supply chain, operations, and material and compliance costs may result in
variations to the timing and amounts of future cash flows. As such climate risk is incorporated into the development of our forecast cash flows in the VIU
by reference to our climate change risk assessment. These risks are principally reflected by the risk adjustments related to the variable profit and volumes
which would be most affected by climate change events, for example, scarcity of certain commodities driving up costs and therefore adversely impacting
variable profit. Further details on our approach to sustainability are included in the Strategic Report on pages 23 to 43.

Key assumptions
The assessment of impairment is based on forecasts of future cashflows which are inherently uncertain and are developed using informed assumptions
such as historical trends and market information. The directors consider the key assumptions that impact the value in use are those to which:

(i) the recoverable amount is most sensitive;

(ii) involve a significant amount of judgement and estimation; and
(ii) drive significant changes to the recoverable amount when flexed under reasonably possible outcomes.

The directors’ approach and key assumptions used to determine the Group’s CGU VIU were as follows:

• Variable profit per unit and volumes – The approach to determining the forecast variable profit per unit and volumes is based on consideration of
historical performance, the order bank, profit optimisation efforts and Group Cycle Plan assumptions, along with the impact of risks on future cashflows
discussed above. A small change in either assumption may have a significant impact to future cashflows and for this reason, as well as the impact of
risks associated with supply and inflationary pressures on variable profit and volumes, the directors consider variable profit per unit and volumes to
be key assumptions. Further, the variable profit per unit and volumes included in the business plan are largely driven by an updated portfolio, which
includes estimates and judgements related to the transition to electrified powertrain, including the introduction of new Jaguar.

• Terminal value capital expenditure – the 5-year cash flows timing and amount are based on the latest Cycle Plan. The terminal value is based on the
best estimate of a maintenance level of capital expenditure which has been derived from depreciation and amortisation expectations and funding
requirements in response to longer-term industry trends and risks informed by those listed above and increases in execution risks in particular, which
are anticipated in the VIU calculation. Due to the judgement and estimation involved in the calculation of terminal value capital expenditure, as well as
the sensitivity of the recoverable amount to any change in the value, the directors consider this to be a key assumption.

• Discount rate – the approach to determining the discount rate is based on the Capital Asset Pricing Model and a market participant after tax cost of
debt. These inputs are based on a typical build up approach, calculated using country specific premiums without size premium and with an unlevered
equity Beta with reference to industry peers. The increase in the year has mainly been driven by increases in the equity risk premium. The discount rate
is regarded as a key assumption as it is the rate which drives the discounted cashflows used to determine the VIU of the CGU primarily due to the level
of judgement and estimation involved and the sensitivity of the recoverable amount to small changes in the percentage.

The VIU assessment is sensitive to certain assumptions, such as Sales, General & Administration (“SG&A”) costs, due to the relative total value but that
involve limited judgement and estimation, and significant changes are not considered reasonably possible, and therefore are not considered to be key
assumptions. Similarly, certain assumptions which involve greater judgement and estimation, such as growth rate of 1.7% (2022: 1.7%, 2021: 1.9%), but
for which even relatively significant changes have a limited impact on the assessment are not regarded as key assumptions.

A n n ua l Re p o r t 2022/23 112
The value of key assumptions used to calculate the recoverable amount are as follows, presented as a % of Gross Vehicle Revenues (“GVR”) to demonstrate
the relative value to the assessment where noted:

As at 31 January 2023 31 March 2022 31 March 2021

Forecast period (Yr1-5) variable profit* (%GVR) 24.9% 24.4% 24.0%
Terminal value variable profit* (%GVR) 23.2% 24.8% 21.4%
Terminal value capital expenditure (%GVR) 8.1% 10.0% 8.9%
Pre-tax discount rate 15.6% 13.4% 13.6%

*Based on forecast variable profit per unit and volumes.

Sensitivity to reasonably possible changes to key assumptions

Given the inherent uncertainty about the timing and amount of any change in key assumptions, as well as the significant portion of the recoverable
amount related to the VIU terminal value, management consider a net impact on terminal period cash flows to be the best means of indicating the
sensitivity of key assumptions.

Management considers the variable profit and volumes assumptions to be interdependent as movement in one assumption will impact the other,
impacting the overall variable profit. For example, the profit optimisation efforts discussed above will likely result in higher average variable profit per unit
with lower volumes whereas a focus on volumes would likely see a reduction in the average variable profit per unit. Consequently, the terminal value
variable profit sensitivity below incorporates sensitivity in volumes via the impact on variable profit.

The table below shows the amount by which the value assigned to the key assumptions must change for the recoverable amount of the CGU to be equal
to its carrying amount:

As at 31 January 2023 31 March 2022 31 March 2021

% Change % Change % Change
Forecast period (Yr1-5) variable profit (6.0)% (3.1)% (12.7)%
Terminal value variable profit (5.5)% (2.1)% (10.1)%
Terminal value capital expenditures 17.5% 5.8% 24.4%
Pre-tax discount rate 31.4% 8.7% 39.2%

In each of the four scenarios above, the sensitivity has been performed in isolation with all other assumptions remaining constant. The prior year
comparatives have been restated to reflect the amount by which the pre-tax values (previously post-tax) of the assumptions would need to change for
the recoverable amount to be equal to the CGU.

21 OTHER ASSETS

As at 31 March (£ millions) 2023 2022 2021

Non-current
Prepaid expenses 66 24 17
Research and development expenditure credit 3 2 4
Other 6 9 11
Total non-current other assets 75 35 32
Current
Recoverable VAT 252 204 200
Prepaid expenses 219 208 120
Research and development expenditure credit 121 63 104
Other 15 18 24
Total current other assets 607 493 448

A n n ua l Re p o r t 2022/23 113
 22 C A S H A N D C A S H E Q U I VA L E N T S

Cash and cash equivalents comprise cash on hand, demand deposits and highly liquid investments with an original maturity of up to three months that
are readily convertible into known amounts of cash and that are subject to an insignificant risk of changes in value.

As at 31 March (£ millions) 2023 2022 2021

Cash and cash equivalents 3,687 4,223 3,778

Cash and cash equivalents includes £45 million (2022: £33 million, 2021: £nil) which is not available for use by the wider group.

23 A L L O WA N C E S F O R T R A D E A N D O T H E R R E C E I VA B L E S

Year ended 31 March (£ millions) 2023 2022 2021

At beginning of year 4 7 11
Charged during the year 3 4 6
Receivables written off during the year as uncollectable (2) (6) (1)
Unused amounts reversed (1) (1) (9)
At end of year 4 4 7

Trade receivables with a contractual amount of £1 million (2022: £1 million, 2021: £nil) that were written off during the year are still subject to
enforcement activity.

Trade receivables pledged as collateral against borrowings are disclosed in note 27.

24 INVENTORIES

Inventories are valued at the lower of cost and net realisable value. Costs of raw materials and consumables are ascertained on a first-in, first-out basis.
Costs, including fixed and variable production overheads, are allocated to work-in-progress and finished goods, determined on a full absorption cost
basis. Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion and selling expenses.

Inventories include vehicles sold subject to repurchase arrangements. These vehicles are carried at cost to the Group and are amortised in changes in
stocks and work-in-progress to their residual values (i.e. estimated second-hand sale value) over the term of the arrangement.

As at 31 March (£ millions) 2023 2022 2021

Raw materials and consumables 148 135 110
Work-in-progress 504 488 371
Finished goods 2,589 2,129 2,525
Inventory basis adjustment (3) 29 16
Total inventories 3,238 2,781 3,022

Inventories of finished goods include £402 million (2022: £361 million, 2021: £406 million) relating to vehicles sold to rental car companies, fleet clients
and others with guaranteed repurchase arrangements.

Cost of inventories (comprising the cost of purchased products and the costs of conversion) recognised as an expense during the year amounted to
£15,421 million (2022: £12,499 million, 2021: £13,917 million), including material and other cost of sales, employee costs, depreciation and production
overheads recognised within other expenses.

During the year, the Group recorded an inventory write-down expense of £75 million (2022: £11 million, 2021: £16 million). The write-down is included
in “Material and other cost of sales”.

Inventories pledged as collateral against borrowings are disclosed in note 27.

A n n ua l Re p o r t 2022/23 114
25 ASSETS CLASSIFIED AS HELD FOR SALE

Assets are classified as held for sale if their carrying amount will be recovered primarily through sale rather than through continuing use, if the assets
are available for immediate sale in their present condition and if the sale is highly probable. Immediately before classification as held for sale, the assets
are measured in accordance with the Group’s accounting policies. Once classified as held for sale, the assets are measured at the lower of their carrying
amount and fair value less costs to sell. Any write-downs on initial classification or subsequent remeasurement are recognised in the consolidated
income statement. Gains are not recognised in excess of any cumulative impairment losses.

As at 31 March 2023, assets classified as held for sale comprise of the following:

As at 31 March (£ millions) 2023 2022 2021

Land and buildings 35 2 -
Heritage assets 3 2 -
Other assets held for sale 24 - -
Total assets classified as held for sale 62 4 -

Work to implement a disposal plan for each class of asset has already begun and is expected to be completed within twelve months of the balance sheet
date. During the year ended 31 March 2023, write-downs of £26 million (2022, 2021: £nil) have been recognised in respect of assets held for sale where
the carrying value of assets exceeded fair value less costs to sell.

26 A C C O U N T S PAYA B L E

As at 31 March (£ millions) 2023 2022 2021

Trade payables 4,305 3,616 4,238
Liabilities to employees 143 168 171
Liabilities for expenses 1,135 929 1,392
Capital creditors 308 431 507
Total accounts payable 5,891 5,144 6,308

Included within “liabilities for expenses” is £831 million (2022: £660 million, 2021: £1,101 million) relating to revenue reductions in the transaction price
of vehicles sold - see note 5.

A n n ua l Re p o r t 2022/23 115
27 I N T E R E S T- B E A R I N G L O A N S A N D B O R R O W I N G S

As at 31 March (£ millions) 2023 2022 2021

Short-term borrowings
Bank loans 658 599 572
Current portion of long-term EURO MTF listed debt 571 779 399
Current portion of long-term loans 249 401 235
Total short-term borrowings 1,478 1,779 1,206
Long-term borrowings
EURO MTF listed debt 3,512 3,953 3,921
Bank loans 1,053 1,260 1,037
Other unsecured 35 35 14
Total long-term borrowings 4,600 5,248 4,972
Lease obligations 710 570 519
Total debt 6,788 7,597 6,697

Euro MTF listed debt

The bonds are listed on the Luxembourg Stock Exchange multilateral trading facility (“EURO MTF”) market. Details of the tranches of the bonds outstanding
at 31 March 2023 are as follows:

€650 million Senior Notes due 2024 at a coupon of 2.200 per cent per annum – issued January 2017
$500 million Senior Notes due 2027 at a coupon of 4.500 per cent per annum – issued October 2017
€500 million Senior Notes due 2026 at a coupon of 4.500 per cent per annum – issued September 2018
€500 million Senior Notes due 2024 at a coupon of 5.875 per cent per annum – issued November 2019
€500 million Senior Notes due 2026 at a coupon of 6.875 per cent per annum – issued November 2019
$700 million Senior Notes due 2025 at a coupon of 7.750 per cent per annum – issued October 2020
$650 million Senior Notes due 2028 at a coupon of 5.875 per cent per annum – issued December 2020
$500 million Senior Notes due 2029 at a coupon of 5.500 per cent per annum – issued July 2021
€500 million Senior Notes due 2028 at a coupon of 4.500 per cent per annum – issued July 2021

Details of the tranches of the bonds repaid in the year ended 31 March 2023 are as follows:

$500 million Senior Notes due 2023 at a coupon of 5.625 per cent per annum – issued January 2013
£400 million Senior Notes due 2023 at a coupon of 3.875 per cent per annum – issued February 2015

Details of the tranches of the bonds repaid in the year ended 31 March 2022 were as follows:

£400 million Senior Notes due 2022 at a coupon of 5.000 per cent per annum – issued January 2014

Details of the tranches of the bonds repaid in the year ended 31 March 2021 were as follows:

£300 million Senior Notes due 2021 at a coupon of 2.750 per cent per annum – issued January 2017

Syndicated loan
In October 2018, a $1 billion syndicate loan was issued with a coupon rate of LIBOR + 1.900 per cent per annum, with $798 million due in January 2025.
$200 million was paid during the year ended 31 March 2023.

Factored receivables facility

During the year ended 31 March 2023, the Group extended its factored receivables facility to $900 million, ending 31 March 2025. Under the terms of
the facility, the Group derecognises factored receivables in accordance with IFRS 9 as there are no recourse arrangements.

The related cash flows are reported within cash flows from operating activities within the consolidated statement of cash flows. Included within bank
loans at 31 March 2023 is £70 million (2022, 2021: £nil) in relation to receivables that were repurchased during the year.

UK export finance facility

During the year ended 31 March 2020, the Group entered and drew down in full a £625 million five-year amortising loan facility backed by a £500 million
guarantee from UK Export Finance. During the year ended 31 March 2023, the Group repaid £125 million (2022: £125 million, 2021: £125 million) of
this loan. During the year ended 31 March 2022, the Group entered and drew down in full an additional £625 million five-year amortising loan facility.

A n n ua l Re p o r t 2022/23 116
The Group repaid £125 million of this additional facility in the year ended 31 March 2023 (2022: £31 million, 2021: £nil). These loans include a covenant
requiring the Group to maintain a minimum liquidity of £1 billion.

China borrowings
During the year ended 31 March 2021, the Group entered into a 3-year RMB 5 billion syndicated revolving loan facility subject to an annual confirmatory
review. This facility was cancelled during the year ended 31 March 2023 and replaced with a new 3-year RMB 5 billion syndicated revolving loan facility
subject to an annual confirmatory review. The new facility is fully drawn at 31 March 2023 and is equivalent to £588 million at 31 March 2023 exchange
rates.

In addition, during the year ended 31 March 2021, the Group entered into a parts factoring facility of which £nil is drawn down at 31 March 2023 (2022:
£nil, 2021: £19 million).

Undrawn facilities
As at 31 March 2023, the Group has a fully undrawn revolving credit facility of £1,520 million (2022: £2,015 million, 2021: £1,935 million). The facility
was renewed on 16 December 2022 with a new maturity date of April 2026 and includes a covenant requiring the Group to maintain a minimum
quarter-end liquidity of £1.0 billion.

The Group’s fleet buyback facility matured in December 2021 and had £3 million undrawn on this facility as at 31 March 2021. During the year ended
31 March 2022, the Group repaid the £110 million drawn on this facility.

Collateral pledged against borrowings

Inventory of £nil (2022: £nil, 2021: £138 million), trade receivables with a carrying amount of £nil (2022: £nil, 2021: £19 million) and other financial
assets with a carrying of £20 million (2022, 2021: £13 million) are pledged as collateral/security against borrowings.

The contractual cash flows of interest-bearing debt (excluding leases) are set out below, including estimated interest payments and assuming the debt
will be repaid at the maturity date.

As at 31 March (£ millions) 2023 2022 2021

Due in
1 year or less 1,742 2,104 1,492
2nd and 3rd years 2,891 2,508 1,270
4th and 5th years 1,666 1,899 3,198
More than 5 years 938 1,800 1,383
Total contractual cash flows 7,237 8,311 7,343

A n n ua l Re p o r t 2022/23 117
28 OTHER FINANCIAL LIABILITIES

As at 31 March (£ millions) 2023 2022 2021

Current
Lease obligations 70 62 65
Interest accrued 95 95 84
Derivative financial instruments 461 445 238
Liability for vehicles sold under a repurchase arrangement 297 267 359
Other - 1 -
Total current other financial liabilities 923 870 746
Non-current
Lease obligations 640 508 454
Derivative financial instruments 472 338 169
Other 11 25 2
Total non-current other financial liabilities 1,123 871 625

29 PROVISIONS

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be required to settle the obligation. When the effect of the time value of money is material, provisions
are determined by discounting the expected future cash flows using a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability.

As at 31 March (£ millions) 2023 2022* 2021*

Current
Product warranty 696 604 643
Emissions compliance 9 79 122
Restructuring 5 118 283
Third party claims and obligations 300 108 63
Other provisions 79 80 50
Total current provisions 1,089 989 1,161
Non-current
Product warranty 976 1,026 1,042
Emissions compliance 71 40 30
Other provisions 44 46 116
Total non-current provisions 1,091 1,112 1,188

*The comparatives for the years ended 31 March 2022 and 31 March 2021 have been re-presented to align with presentation changes for the
year ended 31 March 2023. Product Warranty and Restructuring amounts are consistent with previous years. Legal and product liability amounts
disclosed in previous years are now split into Emissions compliance, Third par ty claims and obligations and Other provisions. Provisions for residual
risk, environmental liability and other employee benefits obligations amounts disclosed in previous years are now grouped in Other provisions.
This has not resulted in any change to repor ted ‘total current provisions’ or ‘total non-current provisions’.

Year ended 31 March 2023 Product Emissions Third party claims Other
Restructuring Total
(£ millions) warranty compliance and obligations provisions
Opening balance 1,630 119 118 108 126 2,101
Provisions made during the year 863 81 24 704 46 1,718
Provisions used during the year (763) (99) (115) (421) (15) (1,413)
Unused amounts reversed in the year (83) (30) (22) (91) (42) (268)
Impact of unwind of discounting 25 - - - - 25
Foreign currency translation - 9 - - 8 17
Closing balance 1,672 80 5 300 123 2,180

A n n ua l Re p o r t 2022/23 118
Product warranty provision
The Group provides product warranties on all new vehicle sales in respect of manufacturing defects, which become apparent in the stipulated policy
period dependent on the market in which the vehicle purchase occurred. The estimated liability for product warranty is recognised when products are
sold or when new warranty programmes are initiated.

Provisions are recognised for the costs of repairing manufacturing defects, recall campaigns, customer goodwill (representing the Group’s constructive
obligation to its clients when managing those warranty claims) and the Group’s other obligations under the warranty.

Assumptions are made on the type and extent of future warranty claims based on experience of the frequency and extent of vehicle faults and defects
historically. The estimates also include assumptions on the amounts of potential repair costs per vehicle and the effects of possible time or mileage limits
and are regularly adjusted to reflect new information. The timing of outflows will vary as and when a warranty claim will arise.

The Group’s calculation methodology uses historical data corrected for experience as information becomes available as well as individual campaign
assumptions (such as scope, uptake rates and repair costs). This can lead to changes in the carrying value of provisions as assumptions are updated over
the life of each warranty; however there are no individual assumptions that can be reasonably expected to move over the next financial year to such a
degree that it would result in a material adjustment to the warranty provision.

The discount on the warranty provision is calculated using a risk-free discount rate as the risks specific to the liability, such as inflation, are included in
the base calculation.

The Group also has back-to-back contractual arrangements with its suppliers in the event that a vehicle fault is proven to be a supplier’s fault. Estimates
are made of the expected reimbursement claims based upon historical levels of recoveries by supplier, adjusted for inflation and applied to the population
of vehicles under warranty at the balance sheet date. Supplier reimbursement claims are presented as separate assets within “Other financial assets”
in note 18. Supplier recoveries are recognised only when the Group considers there to be virtual certainty over the reimbursement, which also requires
historical evidence to support.

The Group notes that changes in the automotive environment regarding the increasing impact of battery electric vehicles presents its own significant
challenges, particularly due to the lack of maturity and historical data available at this time to help inform estimates for future warranty claims, as well as
any associated recoveries from suppliers due to such claims. The Group offers warranties of up to eight years on batteries in electric vehicles. The related
provisions are made with the Group’s best estimate at this time to settle such obligations in the future, but will be required to be continually refined as
sufficient, real-world data becomes available.

Restructuring provision
The restructuring provision includes amounts for third party obligations arising from Group restructuring programmes. This includes amounts payable
to employees following the announcement of the Group’s Reimagine strategy in the year ending 31 March 2021 as well as other Group restructuring
programmes. Amounts are also included in relation to legal and constructive obligations made to third parties in connection with cancellations under the
Group’s Reimagine strategy.

The estimated liability for restructuring activities is recognised when the Group has reason to believe there is a legal or constructive obligation arising
from restructuring actions taken.

The amount provided at the reporting date is calculated based on currently available facts and certain estimates for those obligations (see note 4,
Exceptional items). These estimates are established using historical experience based on the settlement costs for similar liabilities, with proxies being
used where no direct comparison exists.

The amounts and timing of outflows will vary as and when restructuring obligations are progressed with third parties.

Third party claims and obligations

A provision is maintained in respect of legal and constructive obligations to third parties. This includes claims and obligations related to supplier claims,
motor accident claims, consumer complaints, retailer terminations, employment cases and personal injury claims. The increase in the year is driven
mainly by supplier claims related to the significant inflation experienced during the period as well as lower than expected volumes.

The provision recognised is based on previous experience, which is considered as a reasonable assumption to estimate the final settlement, if any, at the
time of the claim. The timing and amount of outflows will vary with decreasing uncertainty from the point at which each claim is received to when it is
subsequently settled.

Emissions compliance
The Group maintains a provision for non compliance with legal emissions requirements for certain jurisdictions. The measurement of the provision
considers the sales volume in that jurisdiction and the fee or cost per the applicable legislation. The Group aims to mitigate non-compliance risk by
purchasing emission credits, participating in emission pools or, subject to the terms of the relevant legislation, generating credits by producing and
selling compliant vehicles in the future. The measurement of the provision at the balance sheet date does not include the impact of credits forecast to
be generated in the future via the production and sale of compliant vehicles.

The timing of outflows will vary and is not known with certainty.

A n n ua l Re p o r t 2022/23 119
Other provisions
Other provisions predominantly include the environmental liability and residual risk provisions. The timing of outflows will vary and is not known with
certainty.

30 OTHER LIABILITIES

As at 31 March (£ millions) 2023 2022 2021

Current
Liabilities for advances received 51 122 61
Ongoing service obligations 301 286 315
VAT 98 95 122
Other taxes payable 70 161 120
Other 8 10 20
Total current other liabilities 528 674 638
Non-current
Ongoing service obligations 478 395 451
Other 9 9 10
Total non-current other liabilities 487 404 461

31 C A P I TA L A N D R E S E R V E S

As at 31 March (£ millions) 2023 2022 2021

Authorised, called up and fully paid
1,500,642,163 ordinary shares of £1 each 1,501 1,501 1,501
Total ordinary share capital 1,501 1,501 1,501

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the
Company.

The capital redemption reserve of £167 million (2022, 2021: £167 million) was created in March 2011 on the cancellation of share capital.

A n n ua l Re p o r t 2022/23 120
32 OTHER RESERVES

The movement of reserves is as follows:

Translation Hedging Cost of hedging Retained Total other

(£ millions)
reserve reserve reserve earnings reserves
Balance at 1 April 2022 (333) (454) 19 3,603 2,835
Loss for the year - - - (60) (60)
Remeasurement of defined benefit obligation - - - (14) (14)
Loss on effective cash flow hedges - (687) (50) - (737)
Income tax related to items recognised in other
comprehensive income - 15 5 4 24
Cash flow hedges reclassified to profit and loss - 618 (16) - 602
Income tax related to items reclassified to profit or loss - (132) 4 - (128)
Amounts removed from hedge reserve and recognised in
inventory - 40 5 - 45
Income tax related to amounts removed from hedge
reserve and recognised in inventory - (8) (1) - (9)
Currency translation differences 13 - - - 13
Balance at 31 March 2023 (320) (608) (34) 3,533 2,571
Of which:
Amounts related to continuing hedges n/a (605) (34) n/a (639)
Amounts related to discontinued hedges n/a (3) - n/a (3)

Balance at 1 April 2021 (357) 136 1 3,806 3,586

Loss for the year - - - (818) (818)
Remeasurement of defined benefit obligation - - - 707 707
(Loss)/gain on effective cash flow hedges - (842) 31 - (811)
Income tax related to items recognised in other
comprehensive income - 197 (8) (92) 97
Cash flow hedges reclassified to profit and loss - (67) (18) - (85)
Income tax related to items reclassified to profit or loss - 13 3 - 16
Amounts removed from hedge reserve and recognised in
inventory - 134 13 - 147
Income tax related to amounts removed from hedge
reserve and recognised in inventory - (25) (3) - (28)
Currency translation differences 24 - - - 24
Balance at 31 March 2022 (333) (454) 19 3,603 2,835
Of which:
Amounts related to continuing hedges n/a (444) 19 n/a (425)
Amounts related to discontinued hedges n/a (10) - n/a (10)

Balance at 1 April 2020 (316) (286) (33) 5,515 4,880

Loss for the year - - - (1,101) (1,101)
Remeasurement of defined benefit obligation - - - (751) (751)
Gain on effective cash flow hedges - 400 37 - 437
Income tax related to items recognised in other
comprehensive income - (76) (6) 143 61
Cash flow hedges reclassified to profit and loss - 116 (7) - 109
Income tax related to items reclassified to profit or loss - (22) 1 - (21)
Amounts removed from hedge reserve and recognised in
inventory - 5 11 - 16
Income tax related to amounts removed from hedge
reserve and recognised in inventory - (1) (2) - (3)
Currency translation differences (41) - - - (41)
Balance at 31 March 2021 (357) 136 1 3,806 3,586
Of which:
Amounts related to continuing hedges n/a 129 1 n/a 130
Amounts related to discontinued hedges n/a 7 - n/a 7

Translation Reserve
The translation reserve comprises foreign currency differences arising from the translation of the financial statements of operations with a function
currency other than GBP.

A n n ua l Re p o r t 2022/23 121
Hedging Reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges
pending subsequent recognition in profit or loss or directly included in the initial cost or other carrying amount of a non-financial asset or non-financial
liability.

Cost of Hedging Reserve

The cost of hedging reserve reflects gain or loss on the portion excluded from the designated hedging instrument that relates to the forward element of
forward contracts. It is initially recognised in other comprehensive income and accounted for similarly to gains or losses in the hedging reserve.

33 DIVIDENDS

During the year ended 31 March 2023 no ordinary share dividends were proposed or paid (2022, 2021: £nil).

34 EMPLOYEE BENEFITS

Pension Schemes
The Group operates several defined benefit (‘DB’) pension plans; these include two large and one smaller defined benefit plan in the UK. The UK DB plans
are administered by a separate trustee and the assets of the plans are generally held in separate funds selected and overseen by the trustee. These plans
were contracted out of the state second pension (S2P) scheme until 5 April 2016. The plans provide benefits for members including a monthly pension
after retirement based on salary and service as set out in the rules of each plan.

Contributions to the plans by the Group take into consideration the results of actuarial valuations. The UK defined benefit plans were closed to new
joiners in April 2010. The Group also operates a number of small benefit arrangements worldwide (the liabilities for these amount to around 0.6% of the
Group total).

For defined benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial updates being carried out
at the end of each reporting period.

Defined benefit costs are split into four categories:

• Current service cost, past service cost and gains and losses on curtailments and settlements;
• Net interest cost;
• Administrative expenses; and
• Remeasurements.

Remeasurement comprising actuarial gains and losses, the effect of the asset ceiling and the return on plan assets (excluding interest) is recognised
immediately in the consolidated balance sheet with a charge or credit to the consolidated statement of comprehensive income in the period in which
they occur. Remeasurement recorded in the statement of comprehensive income is not recycled to profit or loss.

Past service cost, including curtailment gains and losses, is generally recognised in profit or loss in the period of plan amendment. Net interest is calculated
by applying the discount rate at the beginning of the period to the net defined benefit liability, adjusted for expected cashflows during the period. From
the year ended 31 March 2020, at the point a past service cost is incurred, re-measurement of the income statement cost is considered and will be re-
calculated if there is a material change.

The Group presents these defined benefit costs within “Employee costs” in the consolidated income statement (see note 7).

Separate defined contribution plans are available to all other employees of the Group. Costs in respect of these plans are charged to the consolidated
income statement as incurred.

Post-retirement Medicare scheme

Under these unfunded schemes, employees of some subsidiaries receive medical benefits subject to certain limits of amount, periods after retirement
and types of benefits, depending on their grade and location at the time of retirement. Employees separated from the Group as part of an early separation
scheme, on medical grounds or due to permanent disablement, may also be covered under the scheme. The applicable subsidiaries (and therefore, the
Group) account for the liability for the post-retirement medical scheme based on an annual actuarial valuation where appropriate.

Actuarial gains and losses

Actuarial gains and losses relating to retirement benefit plans are recognised in the consolidated statement of comprehensive income in the year in
which they arise.

A n n ua l Re p o r t 2022/23 122
Measurement date
The measurement date of all retirement plans is 31 March.

The trustee of the pension schemes is required by law to act in the interest of the members and of all relevant stakeholders in the schemes and is
responsible for the investment policy with regard to the assets of the schemes and all other governance matters. The board of the trustee must be
composed of representatives of the Group and scheme participants in accordance with each scheme’s regulations.

Through its defined benefit pension schemes, the Group is exposed to a number of risks, the most significant of which are detailed below.

Asset volatility
The schemes’ liabilities are calculated using a discount rate set with reference to corporate bond yields; if the schemes’ assets underperform against
these corporate bonds, this will create or increase a deficit. The defined benefit schemes hold a significant proportion of equity-type assets, which are
expected to outperform corporate bonds in the long-term although introduce volatility and risk in the short-term.

The UK schemes hold a substantial level of index-linked gilts and other inflation and interest rate hedging instruments, together with other bond type
assets, in order to reduce the volatility of assets compared to the liability value, although these will lead to asset value volatility.

As the schemes mature, the Group intends to reduce the level of investment risk by investing more in assets for which expected income is a better
match for the expected benefit obligations.

However, the Group believes that due to the long-term nature of the schemes’ liabilities and the strength of the supporting group, a level of continuing
equity-type investments is currently an appropriate element of the Group’s long-term strategy to manage the schemes efficiently.

The Trustees and the Group are engaged in ongoing discussions to control the impact of climate risk on the schemes’ funding. The current diversified
asset profile of the UK plans should reduce exposure to climate risks.

Changes in bond yields

A decrease in corporate bond yields will increase the schemes’ liabilities, although this is expected to be partially offset by an increase in the value of the
schemes’ assets, specifically the bond holdings and interest rate hedging instruments.

Inflation risk
Some of the Group’s pension obligations are linked to inflation, and higher inflation will lead to higher liabilities (although, in most cases, caps on the level
of inflationary increases are in place to protect the schemes against high inflation). As noted above, the schemes hold a significant proportion of assets in
index-linked gilts, together with other inflation hedging instruments and also assets that are more closely correlated with inflation. However, an increase
in inflation may still create a deficit or increase an existing deficit to some degree.

A n n ua l Re p o r t 2022/23 123
Impact of turbulence in UK Gilt market during 2022
During September 2022, following sustained increases in UK real gilt yields over the summer, the Group witnessed an unprecedented spike in both
nominal and real yields for UK Gilts together with a sharp fall in the value of sterling. This created knock on effects for the UK bond market.

Like most UK defined benefit plans, the JLR schemes use Gilts, Gilt repos and interest rate/inflation swaps to manage a portion of the interest rate and
inflation risk inherent in the funding arrangements for our schemes. Furthermore, a portion of sterling currency risk is hedged. Largely these hedging
instruments are held on a segregated basis providing greater transparency and control than pooled fund approaches to hedging.

Interest rate and inflation risks are hedged based on the Technical Provisions liability (ie lower than the Gilts flat or Buy-out liability) which is similar
in magniture to the accounting liability. Gilt & swap instruments are used to hedge non-pensioner liabilities. A cashflow matching policy applies for
pensioner liabilities which is largely implemented with bonds rather than Gilts. Furthermore, action was taken to reduce the hedge ratio for non-
pensioner liabilities early in July 2022. As a result, the magnitude of interest rate hedging using Gilt & swap instruments was moderated.

Nonetheless, the sharp increases in nominal and real yields, together with the fall in sterling, created a large liquidity requirement for our schemes. The
company and the Trustee worked together to agree appropriate actions to meet this requirement and also control the risk of further liquidity calls. We
are pleased that the agreed actions were sufficient to meet cash requirements without recourse to the Company for additional liquidity.

Changes in financial conditions over the year ended 31 March 2023 have resulted in large changes in the pension assets and liabilities reported for
accounting purposes. Higher bond yields reduced our balance sheet pension liabilities substantially, despite the increase to inflation expectations, as
most inflationary increases to benefits are capped. The full expectation for future inflationary increases under the rules of the schemes is recognised in
the defined benefits obligation, allowing for the caps in place. There are no discretionary increases planned and we do not make any allowance for these.
Whilst market values of assets also reduced due to lower values of hedging and bond assets, the net result was a temporary increase in the pension
surplus at that time.

The schemes remain in surplus on the accounting and the funding basis, therefore no additional cash requirements have been created by the Gilt market
turmoil. In fact, the expected cost of funding future benefit accrual has reduced materially.

UK Gilt and bond market conditions have stabilised over the subsequent months, although with higher long term Gilt yields (both nominal and real) and
higher nominal bond yields. The long term investment strategy remains consistent with prior years, although higher levels of liquidity are now held.

Life expectancy
The majority of the schemes’ obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the
schemes’ liabilities. This is particularly significant in the UK defined benefit schemes, where inflationary increases result in higher sensitivity to changes in
life expectancy. While COVID-19 has had an impact on mortality in the period ended 31 March 2023, the long-term impact on future mortality trends
is currently unknown and consequently no adjustment has been made to mortality assumptions in this regard.

The following tables set out the disclosures pertaining to the retirement benefit amounts recognised in the consolidated financial statements prepared
in accordance with IAS 19:

Change in present value of defined benefit obligation

Year ended 31 March (£ millions) 2023 2022 2021

Defined benefit obligation at beginning of year 7,522 8,432 7,788

Current service cost 82 116 131
Past service cost (155) - 16
Interest expense 212 176 166
Actuarial (gains)/losses arising from:
Changes in demographic assumptions - 10 (21)
Changes in financial assumptions (2,357) (705) 869
Experience adjustments 156 (3) (75)
Exchange differences on foreign schemes 2 - (2)
Member contributions 1 2 1
Benefits paid (374) (506) (441)
Defined benefit obligation at end of year 5,089 7,522 8,432

A n n ua l Re p o r t 2022/23 124
Change in present value of scheme assets

Year ended 31 March (£ millions) 2023 2022 2021

Fair value of schemes' assets at beginning of year 7,931 8,045 8,168

Interest income 245 170 170
Remeasurement (loss)/gain on the return of plan assets, excluding
amounts included in interest income (2,215) 9 22
Administrative expenses (26) (27) (22)
Exchange differences on foreign schemes - - (1)
Employer contributions 164 238 148
Member contributions 1 2 1
Benefits paid (374) (506) (441)
Fair value of schemes' assets at end of year 5,726 7,931 8,045

The actual return on the schemes’ assets for the year ended 31 March 2023 was £1,970 million (2022: £179 million, 2021: £192 million).

Amounts recognised in the consolidated income statement consist of:

Year ended 31 March (£ millions) 2023 2022 2021

Current service cost 82 116 131

Past service (credit)/cost (155) - 16
Administrative expenses 26 27 22
Net interest (income)/cost (including onerous obligations) (33) 6 (4)
Components of defined benefit (income)/cost recognised in the
(80) 149 165
consolidated income statement

Amounts recognised in the consolidated statement of comprehensive income consist of:

Year ended 31 March (£ millions) 2023 2022 2021

Actuarial (losses)/gains arising from:

Changes in demographic assumptions - (10) 21
Changes in financial assumptions 2,357 705 (869)
Experience adjustments (156) 3 75
Remeasurement (loss)/gain on the return of schemes' assets,
(2,215) 9 22
excluding amounts included in interest income
Remeasurement (loss)/gain on net defined benefit obligation (14) 707 (751)

Amounts recognised in the consolidated balance sheet consist of:

As at 31 March (£ millions) 2023 2022 2021

Present value of defined benefit obligations (5,089) (7,522) (8,432)

Fair value of schemes' assets 5,726 7,931 8,045
Net retirement benefit obligation 637 409 (387)
Presented as non-current asset 659 434 -
Presented as non-current liability (22) (25) (387)

A n n ua l Re p o r t 2022/23 125
The most recent valuations of the defined benefit schemes for accounting purposes were carried out at 31 March 2023 by a qualified independent
actuary. For the UK schemes this is based on membership data as at 1 April 2022 for the JPP & LRPS and at 1 April 2021 for the smaller JEPP. The present
value of the defined benefit liability, and the related current service cost and past service cost, were measured using the projected unit credit method.
The asset valuations are taken from the asset custodian for each scheme together with the balance of the Trustee bank accounts.

The principal assumptions used in accounting for the pension schemes are set out below:

As at 31 March 2023 2022 2021

Discount rate 4.8% 2.8% 2.1%
Expected rate of increase in benefit revaluation of
1.9% 2.2% 2.1%
covered employees
RPI inflation rate 3.0% 3.5% 3.1%
CPI inflation rate (capped at 5% p.a.) 2.5% - -
CPI inflation rate (capped at 2.5% p.a.) 1.7% 1.9% 1.8%

For the valuation at 31 March 2023, the mortality assumptions used are the Self-Administered Pension Schemes (‘SAPS’) mortality base table, S2PxA
tables (“Light” tables for members of the Jaguar Executive Pension Plan).
• For the Jaguar Pension Plan, scaling factors of 101 per cent to 115 per cent have been used for male members and scaling factors of 103 per cent
to 118 per cent have been used for female members.
• For the Land Rover Pension Scheme, scaling factors of 105 per cent to 117 per cent have been used for male members and scaling factors of 100
per cent to 116 per cent have been used for female members.
• For the Jaguar Executive Pension Plan, scaling factors of 93 per cent to 97 per cent have been used for male members and scaling factors of 91 per
cent to 96 per cent have been used for female members.

For the valuation at 31 March 2022, the mortality assumptions used were the SAPS mortality base table, S2PxA tables (“Light” tables for members of
the Jaguar Executive Pension Plan).
• For the Jaguar Pension Plan, scaling factors of 101 per cent to 115 per cent have been used for male members and scaling factors of 103 per cent
to 118 per cent have been used for female members.
• For the Land Rover Pension Scheme, scaling factors of 105 per cent to 117 per cent have been used for male members and scaling factors of 100
per cent to 116 per cent have been used for female members.
• For the Jaguar Executive Pension Plan, scaling factors of 93 per cent to 97 per cent have been used for male members and scaling factors of 91 per
cent to 96 per cent have been used for female members.

For the valuation at 31 March 2021, the mortality assumptions used were the SAPS mortality base table, S2PxA tables (“Light” tables for members of
the Jaguar Executive Pension Plan).
• For the Jaguar Pension Plan, scaling factors of 111 per cent to 117 per cent have been used for male members and scaling factors of 101 per cent
to 112 per cent have been used for female members.
• For the Land Rover Pension Scheme, scaling factors of 107 per cent to 111 per cent have been used for male members and scaling factors of 101
per cent to 109 per cent have been used for female members.
• For the Jaguar Executive Pension Plan, an average scaling factor of 94 per cent has been used for male members and an average scaling factor of
84 per cent has been used for female members.

For the 2023 year end calculations there is an allowance for future improvements in line with the CMI (2021) projections and an allowance for long-term
improvements of 1.25 per cent per annum and a smoothing parameter of 7.5 (2022: CMI (2021) projections with 1.25 per cent per annum improvements
and a smoothing parameter of 7.5, 2021: CMI (2020) projections with 1.25 per cent per annum improvements and a smoothing parameter of 7.5).

A n n ua l Re p o r t 2022/23 126
The assumed life expectancies on retirement at age 65 are:

As at 31 March (years) 2023 2022 2021

Retiring today:
Males 21.5 21.6 21.0
Females 23.8 23.8 23.3
Retiring in 20 years:
Males 22.9 23.0 22.4
Females 25.7 25.7 25.2

A past service credit of £155 million has been recognised in the year ended 31 March 2023 in relation to a change in indexation for some benefits. It has
been agreed with the Trustees that the inflationary index for pension increases in payment and deferment will change from RPI to CPI with effect from
1 July 2022 for future increases for those members of the Schemes where this change was deemed appropriate. The P&L items have been remeasured
as at 30 June 2022 for the remainder of the period as required.

A past service cost of £9 million was recognised in the year ended 31 March 2021 following a further High Court ruling, published on 20 November 2020,
that provided clarification on the obligations of pension plan trustees to equalise past transfer values allowing for the effect of unequal Guaranteed
Minimum Pensions (‘GMP’) between 17 May 1990 and 5 April 1997 (“GMP equalisation”). The Group had previously recognised a past service cost of
£17 million in the year ended 31 March 2019, following the High Court ruling in 2018 in respect of GMP equalisation, and has retained this allowance at
31 March 2023 but adjusted for the passage of time and to reflect the estimated impact of changes in market conditions.

A further past service cost of £7 million was also recognised in the year ended 31 March 2021. This reflected benefit improvements for certain members
as part of the Group restructuring programme that commenced in the year ended 31 March 2021.

All past service costs are recognised in ‘exceptional items’ in the consolidated income statement. See Note 4 for further information.

The sensitivity analysis below is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur,
and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial
assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the
reporting period) has been applied as when calculating the pension liability recognised within the consolidated balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous periods.

Assumption Change in assumption Impact on scheme liabilities Impact on service cost

Discount rate Increase/decrease by 0.25% Decrease/increase by c.£191 million Decrease/increase by £3 million

Inflation rate Increase/decrease by 0.25% Increase/decrease by c.£104 million Increase/decrease by £2 million

Increase/decrease in life expectancy by 1
Mortality Increase/decrease by c.£145 million Increase/decrease by £1 million
year

A n n ua l Re p o r t 2022/23 127
The fair value of schemes’ assets is represented by the following major categories:

As at 31 March
2023 2022 2021
(£ millions)
Un- Un- Un-
Quoted Total % Quoted Total % Quoted Total %
quoted quoted quoted
Equity
instruments
Information
technology - - - - - 127 127 2% - 134 134 2%
Energy - - - - - 18 18 - - 11 11 -
Manufacturing - - - - - 96 96 1% - 75 75 1%
Financials - - - - - 41 41 1% - 48 48 1%
Other - - - - - 173 173 2% - 267 267 3%
- - - - - 455 455 6% - 535 535 7%
Debt
instruments
Government
bonds 1,830 (339) 1,491 26% 1,813 65 1,878 23% 1,625 88 1,713 21%
Corporate
bonds
(investment
grade) 768 250 1,018 19% 1,149 310 1,459 18% 1,340 243 1,583 20%
Corporate
bonds (Non
investment
grade) - 759 759 13% - 973 973 12% - 1,061 1,061 13%
2,598 670 3,268 58% 2,962 1,348 4,310 53% 2,965 1,392 4,357 54%
Property funds
UK - 289 289 5% - 307 307 4% - 304 304 4%
Other - 230 230 4% - 240 240 3% - 201 201 3%
- 519 519 9% - 547 547 7% - 505 505 7%
Cash and cash
equivalents 52 254 306 5% 75 363 438 6% 74 192 266 3%
Other
Hedge funds - 312 312 5% - 506 506 6% - 496 496 6%
Private
markets - 1,078 1,078 19% - 998 998 13% - 824 824 10%
Alternatives - 186 186 3% - 462 462 6% - 641 641 8%
- 1,576 1,576 27% - 1,966 1,966 25% - 1,961 1,961 24%
Derivatives
Foreign
exchange
contracts - 17 17 - - (35) (35) - - 15 15 -
Interest rate and
inflation swaps - 40 40 1% - 250 250 3% - 361 361 4%
Equity
protection
derivatives - - - - - - - - - 48 48 1%
- 57 57 1% - 215 215 3% - 424 424 5%
Total 2,650 3,076 5,726 100% 3,037 4,894 7,931 100% 3,039 5,009 8,048 100%

As at 31 March 2023, the schemes held Gilt Repos. The net value of these transactions is included in the value of government bonds in the table above.
The gross value of the funding obligation for the Repo transactions is £487 million at 31 March 2023 (2022: £1,462 million, 2021: £2,057 million).

JLR assigns an accounting level (1, 2 or 3) to asset holdings in order to reflect the level of judgement involved in the valuation of an asset. In assigning the
level JLR balances consistency between asset holdings, consistency from year to year and manager/other assessments. JLR designates level 1 to direct
holdings of liquid assets where an active market exists.

Custodian accounts where underlying assets are regularly traded or where comparable assets have traded values are designated level 2, for example
derivatives (including net value of swaps) and some property holdings. Assets which are not designated as level 1 or 2 are designated as level 3. Level 1
assets are reported as quoted, level 2 and 3 unquoted. Repo obligations are noted separately.

A n n ua l Re p o r t 2022/23 128
Private Equity holdings have been measured using the most recent valuations, adjusted for cash and currency movements between the last valuation
date and 31 March 2023. Given the movements in listed equity markets, the valuation of Private Equity holdings may vary significantly. The value of the
Private Equity holdings in the JLR UK Plans included above is £762 million as at 31 March 2023 (2022: £661 million, 2021: £453 million).

Jaguar Land Rover contributes towards the UK defined benefit schemes. Statutory funding valuations are carried out every three years, the latest
valuation as at 31 March 2021 was completed on 30 June 2022. The valuations resulted in revised schedules of contributions effective from 1 July
2022. At the point the valuations were agreed each plan was in surplus and, therefore, there are no further deficit recover contributions currently
payable. The ongoing Group contribution rate for defined benefit accrual for FY23 was c.24 per cent of pensionable salaries in the UK, however following
changes in financial conditions, from 1 April 2023 this reduced to c.10 per cent. The ongoing rate will vary to reflect prevailing financial conditions over
time. The next statutory funding valuations are scheduled as at 31 March 2024 and are expected to be completed by 30 June 2025.

JLR has taken legal advice considering the documentation of the UK schemes and the regulatory environment. This confirmed the recoverability of any
surplus in the scheme via reduced future contributions or settlement and JLR has based its accounting judgement on this advice.

The average duration of the benefit obligations at 31 March 2023 is 14.5 years (2022: 17.5 years, 2021: 19.0 years). Higher net discount rates have the
effect of reducing the duration of the liabilities and vice versa.

The expected net periodic pension cost for the year ended 31 March 2024 is expected to be £39 million. The Group expects to pay £30 million to its
defined benefit schemes, in total, for the year ended 31 March 2024 (excluding member contributions through salary sacrifice).

Defined contribution schemes

The Group’s contribution to defined contribution schemes for the year ended 31 March 2023 was £100 million (2022: £83 million, 2021: £86 million).

35 COMMITMENTS AND CONTINGENCIES

The following includes a description of contingencies and commitments. The Group assesses such commitments and claims as well as monitors the
legal environment on an ongoing basis, with the assistance of external legal counsel wherever necessary. The Group records a liability for any claims
where a potential loss is probable and capable of being estimated and discloses such matters in the financial statements, if material. For potential losses
that are considered possible, but not probable, the Group provides disclosure in the consolidated financial statements but does not record a liability
unless the loss becomes probable. Such potential losses may be of an uncertain timing and / or amounts.

As at 31 March (£ millions) 2023 2022* 2021*

Contingencies:
• Third party claims and obligations 601 334 140
• Taxes and duties 61 75 50
• Other 121 161 153

Commitments:
• Plant and equipment 386 735 862
• Intangible assets 15 15 16

Pledged as collateral/security against the borrowings and commitments:

• Inventory - - 138
• Trade receivables - - 19
• Other financial assets 20 13 13

*The comparatives for the year ended 31 March 2022 and 31 March 2021 have been re-presented to align with presentation changes for the year
ended 31 March 2023. Litigation and product related amounts disclosed in previous years, in addition to third par ty claims previously disclosed
under Other, are now presented together in Third Par ty Claims and Obligations. This has not resulted in any change to total contingent liabilities
and commitments disclosed.

A n n ua l Re p o r t 2022/23 129
Contingencies
Contingencies relates to legal and constructive obligations to third parties. There are claims and obligations against the Group which management has not
recognised, as settlement is not considered probable. These claims and obligations relate primarily to the following:

• third party claims and obligations primarily supplier claims;

• tax and duty; and,
• other, including consumer complaints, retailer terminations, employment cases and personal injury claims.

The increase in the year is driven mainly by supplier claims related to the significant inflation experienced during the period as well as lower than expected
volumes.

Commitments
The Group has entered into various contracts with vendors and contractors for the acquisition of plant and equipment and various civil contracts of a capital
nature and the acquisition of intangible assets.

Joint venture
Stipulated within the joint venture agreement with Chery Jaguar Land Rover Automotive Ltd., and subsequently amended by a change to the Articles of
Association of Chery Jaguar Land Rover Automotive Ltd. is a commitment for the Group to contribute a total of CNY 5,000 million in capital. Of this amount,
CNY 3,475 million has been contributed as at 31 March 2023. The outstanding commitment of CNY 1,525 million translates to £181 million at the 31 March
2023 exchange rate.

The Group’s share of capital commitments of its joint venture at 31 March 2023 is £12 million (2022: £16 million, 2021 £42 million) and contingent liabilities
of its joint ventures at 31 March 2023 is £nil (2022, 2021 £nil).

36 C A P I TA L M A N A G E M E N T

The Group’s objectives when managing capital are to ensure the going concern operation of all subsidiary companies within the Group and to maintain an
efficient capital structure to support ongoing and future operations of the Group and to meet shareholder expectations.

The Group issues debt, primarily in the form of bonds, to meet anticipated funding requirements and maintain sufficient liquidity. The Group also maintains
certain undrawn committed credit facilities to provide additional liquidity. These borrowings, together with cash generated from operations, are loaned
internally or contributed as equity to certain subsidiaries as required. Surplus cash in subsidiaries is pooled (where practicable) and invested to satisfy
security, liquidity and yield requirements.

The capital structure and funding requirements are regularly monitored by the Company’s Board of Directors to ensure sufficient liquidity is maintained by
the Group. All debt issuance and capital distributions are approved by the Company’s Board of Directors.

As at 31 March (£ millions) 2023 2022 2021

Short-term debt 1,548 1,841 1,271

Long-term debt 5,240 5,756 5,426
Total debt* 6,788 7,597 6,697
Equity attributable to shareholders 4,239 4,503 5,254
Total capital 11,027 12,100 11,951

*Total debt includes lease obligations of £710 million (2022: £570 million, 2021: £519 million).

A n n ua l Re p o r t 2022/23 130
37 FINANCIAL INSTRUMENTS

Recognition and derecognition

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial instruments are recognised on the balance sheet when the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire or it transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and
rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for
amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues
to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. Any gain or loss arising on derecognition is
recognised in profit or loss. When a financial instrument is derecognised, the cumulative gain or loss in equity (if any) is transferred to the consolidated
income statement.

Financial assets are written off when there is no reasonable expectation of recovery. The Group reviews the facts and circumstances around each asset
before making a determination. Financial assets that are written off could still be subject to enforcement activities.

Financial liabilities are derecognised when they are extinguished, that is when the obligation is discharged, cancelled or has expired.

Initial measurement
Initially, a financial instrument is recognised at its fair value. Transaction costs directly attributable to the acquisition or issue of financial instruments
are recognised in determining the carrying amount, if it is not classified as at fair value through profit or loss. Transaction costs of financial instruments
carried at fair value through profit or loss are expensed in profit or loss.

Subsequently, financial instruments are measured according to the category in which they are classified.

Classification and measurement – financial assets

Classification of financial assets is based on the business model in which the instruments are held as well as the characteristics of their contractual
cash flows. The business model is based on management’s intentions and past pattern of transactions. Financial assets with embedded derivatives are
considered in their entirety when determining whether their cash flows are solely payment of principal and interest. The Group reclassifies financial
assets when and only when its business model for managing those assets changes.

Financial assets are classified into three categories:

Financial assets at amortised cost are non-derivative financial assets with contractual cash flows that consist solely of payments of principal and
interest and which are held with the intention of collecting those contractual cash flows. Subsequently, these are measured at amortised cost using the
effective interest method less impairment losses, if any. These include cash and cash equivalents, contract assets and other financial assets.

Financial assets at fair value through other comprehensive income are non-derivative financial assets with contractual cash flows that consist solely
of payments of principal and interest and which are held with the intention of collecting those contractual cash flows as well as to sell the financial
asset. Subsequently, these are measured at fair value, with unrealised gains or losses being recognised in other comprehensive income apart from any
expected credit losses or foreign exchange gains or losses, which are recognised in profit or loss. This category can also include financial assets that are
equity instruments which have been irrevocably designated at initial recognition as fair value through other comprehensive income. For these assets,
there is no expected credit loss recognised in profit or loss.

Financial assets at fair value through profit or loss are financial assets with contractual cash flows that do not consist solely of payments of principal
and interest. This category includes derivatives, embedded derivatives separated from the host contract and investments in certain convertible loan
notes. Subsequently, these are measured at fair value, with unrealised gains or losses being recognised in profit or loss, with the exception of derivative
instruments designated in a hedging relationship, for which hedge accounting is applied.

Classification and measurement – financial liabilities

Financial liabilities are classified as subsequently measured at amortised cost unless they meet the specific criteria to be recognised at fair value through
profit or loss.

Other financial liabilities are measured at amortised cost using the effective interest method.

Financial liabilities at fair value through profit or loss include derivatives and embedded derivatives separated from the host contract as well as financial
liabilities held for trading. Subsequent to initial recognition, these are measured at fair value with gains or losses being recognised in profit or loss.
Embedded derivatives relating to prepayment options on senior notes are not considered as closely related and are separately accounted unless the
exercise price of these options is approximately equal on each exercise date to either the amortised cost of the senior notes or the present value of the
lost interest for the remaining term of the senior notes.

Impairment
The Group recognises a loss allowance in profit or loss for expected credit losses on financial assets held at amortised cost or at fair value through other
comprehensive income. Expected credit losses are forward looking and are measured in a way that is unbiased and represents a probability-weighted

A n n ua l Re p o r t 2022/23 131
amount, takes into account the time value of money (values are discounted using the applicable effective interest rate) and uses reasonable and
supportable information.

Lifetime expected credit losses are calculated for assets that were deemed credit impaired at initial recognition or have subsequently become credit
impaired as well as those where credit risk has increased significantly since initial recognition.

The Group adopts the simplified approach to apply lifetime expected credit losses to trade receivables and contract assets. Where credit risk is deemed
low at the reporting date or to have not increased significantly, credit losses for the next 12 months are calculated.

Credit risk is determined to have increased significantly when the probability of default increases. Such increases are relative and assessment may include
external ratings (where available) or other information such as past due payments. Historic data and forward-looking information are both considered.
Objective evidence for a significant increase in credit risk may include where payment is overdue by 90 or more days as well as other information about
significant financial difficulties of the borrower.

Equity instruments
An equity instrument is any contract that evidences residual interests in the assets of the Group after deducting all of its liabilities. Equity instruments
issued by the Group are recorded at the proceeds received, net of direct issue costs.

Investments in equity instruments are measured at fair value; however, where a quoted market price in an active market is not available, equity
instruments are measured at cost (investments in equity instruments that are not held for trading). The Group has not elected to account for these
investments at fair value through other comprehensive income.

Determination of fair value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. The fair value of a financial
instrument on initial recognition is normally the transaction price.

In estimating the fair value of an asset or liability, the Group takes into account the characteristics of the asset or liability if market participants would take
those characteristics into account when pricing the asset or liability at the measurement date. Subsequent to initial recognition, the Group determines
the fair value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets held) or quoted ask prices (financial
liabilities held) and using valuation techniques for other instruments. Valuation techniques include the discounted cash flow method and other valuation
models.

Hedge accounting
The Group uses foreign currency forward contracts, foreign currency options and borrowings denominated in foreign currency to hedge its risks associated
with foreign currency fluctuations relating to highly probable forecast transactions. The Group designates these foreign currency forward contracts,
foreign currency options and borrowings denominated in foreign currency in cash flow hedging relationships.

The Group uses cross-currency interest rate swaps to convert some of its foreign currency denominated fixed-rate borrowings to GBP floating-rate
borrowings. Hedge accounting is applied using both fair value and cash flow hedging relationships. The designated risks are foreign currency and interest
rate risks.

Derivative contracts are stated at fair value on the consolidated balance sheet at each reporting date.

At inception of the hedge relationship, the Group documents the economic relationship between the hedging instrument and the hedged item,
including whether changes in the cash flows of the hedging instrument are expected to offset changes in the cash flows of the hedged item. The Group
documents its risk management objective and strategy for undertaking its hedging transactions. The Group designates only the intrinsic value of foreign
exchange options in the hedging relationship. The Group designates amounts excluding foreign currency basis spread in the hedging relationship for both
foreign exchange forward contracts and cross-currency interest rate swaps. Changes in the fair value of the derivative contracts that are designated
and effective as hedges of future cash flows are recognised in the cash flow hedge reserve within other comprehensive income (net of tax), and any
ineffective portion is recognised immediately in the consolidated income statement.

Changes in both the time value of foreign exchange options and foreign currency basis spread of foreign exchange forwards and cross-currency interest
rate swaps are recognised in other comprehensive income (net of tax) in the cost of hedging reserve to the extent that they relate to the hedged item
(the “aligned” value).

Changes in the fair value of contracts that are designated in a fair value hedge are taken to the consolidated income statement. They offset the change
in fair value, attributable to the hedged risks, of the borrowings designated as the hedged item.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised or no longer qualifies for hedge accounting.
Amounts accumulated in equity are reclassified to the consolidated income statement in the periods in which the forecast transactions affect profit
or loss or as an adjustment to a non-financial item (e.g. inventory) when that item is recognised on the balance sheet. These deferred amounts are
ultimately recognised in profit or loss as the hedged item affects profit or loss (for example through cost of goods sold).

A n n ua l Re p o r t 2022/23 132
If the forecast transaction is no longer expected to occur, the net cumulative gain or loss in equity, including deferred costs of hedging, is immediately
transferred and recognised in the consolidated income statement.

Interest rate benchmark reform

A reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank offered rates (‘IBORs’) with
alternative risk-free rates (‘RFR’). During the year ended 31 March 2022, the Group adopted Interest Rate Benchmark Reform (Phase 2) Amendments
to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (effective 1 January 2022). The amendments permit modifications to asset and liability values as a direct
consequence of the interest rate benchmark reform, and which are made on an economically equivalent basis (i.e. where the basis for determining
contractual cash flows is the same), by only updating the effective interest rate. The amendments also provide relief from specific hedge accounting
requirements.

During the year ended 31 March 2022, the Group converted its LIBOR exposures to risk-free rates in advance of the cessation date. This conversion
included loans and derivatives which have been converted using fallback provisions. A number of derivatives which were converted using fallback
provisions have not yet transitioned to RFR due to the timing of reprice dates. Loans held by the Group that reference USD LIBOR will continue to do so
until June 2023. The expected impact of financial instruments yet to transition is immaterial for the Group.

As a result of the fallback provision, the Group consider its exposure to interest rate benchmark reform at 31 March 2023 to be minimal. The following
table shows the total amounts of exposures to IBOR which have yet to transition and those with appropriate fallback language at 1 April 2021, 31 March
2022 and at 31 March 2023. The amounts of financial assets and financial liabilities are shown at their carrying amounts and derivatives are shown at
their notional amounts:

GBP LIBOR USD LIBOR

Total amount of Amount with Total amount of Amount with
As at (£ millions) contracts not appropriate contracts not appropriate
yet transitioned fallback clause yet transitioned fallback clause
31 March 2023
Financial liabilities - carrying value
Syndicated loan - - (644) (644)
UKEF facility - - - -
Derivatives - notional amount
Cross currency interest rate swaps - hedged - - - -
Cross currency interest rate swaps - non hedged - - - -
31 March 2022
Financial liabilities - carrying value
Syndicated loan - - (753) (753)
UKEF facility - - - -
Derivatives - notional amount
Cross currency interest rate swaps - hedged (380) (380) - -
Cross currency interest rate swaps - non hedged (539) (539) - -
1 April 2021
Financial liabilities - carrying value
Syndicated loan - - (719) -
UKEF facility (443) - - -
Derivatives - notional amount
Cross currency interest rate swaps - hedged (825) - - -
Cross currency interest rate swaps - non hedged (539) - - -

A n n ua l Re p o r t 2022/23 133
(A) Financial assets and liabilities

The following table shows the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2023:

Fair Value Through Profit and Loss

Derivatives other Derivatives Total
As at 31 March 2023 Amortised Financial Total fair
than in hedging in hedging carrying
(£ millions) cost assets value
relationship relationship value
Cash and cash equivalents 3,687 - - - 3,687 3,687
Short-term deposits and other investments 105 - - - 105 105
Trade receivables 1,013 - - - 1,013 1,013
Investments - 43 - - 43 43
Other financial assets - current 274 - 55 46 375 375
Other financial assets - non-current 78 - 51 20 149 149
Total financial assets 5,157 43 106 66 5,372 5,372
Accounts payable 5,891 - - - 5,891 5,891
Short-term borrowings 1,478 - - - 1,478 1,476
Long-term borrowings* 4,600 - - - 4,600 4,376
Other financial liabilities - current 462 - 89 372 923 923
Other financial liabilities - non-current 651 - 20 452 1,123 1,080
Total financial liabilities 13,082 - 109 824 14,015 13,746

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

The following table shows the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2022:

Fair Value Through Profit and Loss

Derivatives other Derivatives Total
As at 31 March 2022 Amortised Financial Total fair
than in hedging in hedging carrying
(£ millions) cost assets value
relationship relationship value
Cash and cash equivalents 4,223 - - - 4,223 4,223
Short-term deposits and other investments 175 - - - 175 175
Trade receivables 722 - - - 722 722
Investments - 30 - - 30 30
Other financial assets - current 209 - 128 57 394 394
Other financial assets - non-current 87 - 85 13 185 185
Total financial assets 5,416 30 213 70 5,729 5,729
Accounts payable 5,144 - - - 5,144 5,144
Short-term borrowings 1,779 - - - 1,779 1,778
Long-term borrowings* 5,248 - - - 5,248 5,216
Other financial liabilities - current 425 - 29 416 870 870
Other financial liabilities - non-current 533 - 52 286 871 901
Total financial liabilities 13,129 - 81 702 13,912 13,909

* Included in the long-term borrowings shown in other financial liabilities is £801 million that is designated as the hedged item in a fair value hedge
relationship. Included within this figure is £(67) million of fair value adjustments as a result of the hedge relationship.

A n n ua l Re p o r t 2022/23 134
The following table shows the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2021:

Fair Value Through Profit and Loss

Derivatives other Derivatives Total
As at 31 March 2021 Amortised Financial Total fair
than in hedging in hedging carrying
(£ millions) cost assets value
relationship relationship value
Cash and cash equivalents 3,778 - - - 3,778 3,778
Short-term deposits and other investments 1,004 - - - 1,004 1,004
Trade receivables 863 - - - 863 863
Investments - 22 - - 22 22
Other financial assets - current 196 - 73 208 477 477
Other financial assets - non-current 92 - 42 207 341 341
Total financial assets 5,933 22 115 415 6,485 6,485
Accounts payable 6,308 - - - 6,308 6,308
Short-term borrowings 1,206 - - - 1,206 1,217
Long-term borrowings* 4,972 - - - 4,972 5,136
Other financial liabilities - current 508 - 67 171 746 746
Other financial liabilities - non-current 456 - 65 104 625 688
Total financial liabilities 13,450 - 132 275 13,857 14,095

* Included in the long-term borrowings shown in other financial liabilities is £784 million that is designated as the hedged item in a fair value
hedge relationship Included within this figure is £1 million of fair value adjustments as a result of the hedge relationship.

Offsetting
Certain financial assets and financial liabilities are subject to offsetting where there is currently a legally enforceable right to set off recognised amounts
and the Group intends to either settle on a net basis or to realise the asset and settle the liability simultaneously.

Derivative financial assets and financial liabilities are subject to master netting arrangements whereby in the case of insolvency, derivative financial
assets and financial liabilities can be settled on a net basis.

The following table discloses the amounts that have been offset in arriving at the consolidated balance sheet presentation and the amounts that are
available for offset only under certain conditions as at 31 March 2023:

Amounts subject to a master netting

arrangement
Gross amount Net amount
Gross Cash collateral Net amount
As at 31 March 2023 of recognised presented in Financial
amount (received) / after
(£ millions) set off in the the balance instruments
recognised pledged offsetting
balance sheet sheet
Financial assets
Derivative financial assets 172 - 172 (162) - 10
Cash and cash equivalents 3,923 (236) 3,687 - - 3,687
4,095 (236) 3,859 (162) - 3,697
Financial liabilities
Derivative financial liabilities 933 - 933 (162) - 771
Short-term borrowings 1,714 (236) 1,478 - - 1,478
2,647 (236) 2,411 (162) - 2,249

The following table discloses the amounts that have been offset in arriving at the consolidated balance sheet presentation and the amounts that are
available for offset only under certain conditions as at 31 March 2022:

Amounts subject to a master netting

arrangement
Gross amount Net amount
Gross Cash collateral Net amount
As at 31 March 2022 of recognised presented in Financial
amount (received) / after
(£ millions) set off in the the balance instruments
recognised pledged offsetting
balance sheet sheet
Financial assets
Derivative financial assets 283 - 283 (275) - 8
Cash and cash equivalents 4,381 (158) 4,223 - - 4,223
4,664 (158) 4,506 (275) - 4,231
Financial liabilities
Derivative financial liabilities 783 - 783 (275) - 508
Short-term borrowings 1,937 (158) 1,779 - - 1,779
2,720 (158) 2,562 (275) - 2,287

A n n ua l Re p o r t 2022/23 135
The following table discloses the amounts that have been offset in arriving at the consolidated balance sheet presentation and the amounts that are
available for offset only under certain conditions as at 31 March 2021:

Amounts subject to a master netting

arrangement
Gross amount Net amount
Gross Cash collateral Net amount
As at 31 March 2021 of recognised presented in Financial
amount (received) / after
(£ millions) set off in the the balance instruments
recognised pledged offsetting
balance sheet sheet
Financial assets
Derivative financial assets 530 - 530 (362) - 168
Cash and cash equivalents 3,995 (217) 3,778 - - 3,778
4,525 (217) 4,308 (362) - 3,946
Financial liabilities
Derivative financial liabilities 407 - 407 (362) - 45
Short-term borrowings 1,423 (217) 1,206 - - 1,206
1,830 (217) 1,613 (362) - 1,251

Fair value hierarchy

Financial instruments held at fair value are required to be measured by reference to the following levels:

Quoted prices in an active market (Level 1): this level of hierarchy includes financial instruments that are measured by reference to quoted prices
(unadjusted) in active markets for identical assets or liabilities;

Valuation techniques with observable inputs (Level 2): this level of hierarchy includes financial assets and liabilities measured using inputs other than
quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Valuation techniques with significant unobservable inputs (Level 3): this level of hierarchy includes financial assets and liabilities measured using inputs
that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on
assumptions that are neither supported by prices from observable current market transactions in the same instrument nor based on available market
data.

Recent transaction values

The pricing of recent investment transactions is the main input of valuations performed by the Group. The Group’s policy is to use observable market
data where possible for its valuations and, in the absence of portfolio company earnings or revenue to compare, or of relevant comparable businesses’
data, recent transaction prices represent the most reliable observable inputs.

Alternative valuation methodologies

Alternative valuation methodologies are used by the Group for reasons specific to individual assets. At 31 March 2023, the alternative technique used
was net asset value, representing 100 per cent of alternatively valued assets.

There has been no change in the valuation techniques adopted in either current or prior financial years as presented. There were no transfers between
fair value levels in the years ended 31 March 2023, 2022 and 2021.

The financial instruments that are measured subsequent to initial recognition at fair value are classified as Level 2 fair value measurements, as defined
by IFRS 13, being those derived from inputs other than quoted prices that are observable. These valuation techniques maximise the use of observable
market data where it is available and rely as little as possible on entity-specific estimates. Fair values of forward derivative financial assets and liabilities
are estimated by discounting expected future contractual cash flows using prevailing market interest rate curves from Reuters. Commodity swap
contracts are similarly fair valued by discounting expected future contractual cash flows. Option contracts on foreign currency are entered into on a zero
cost collar basis and fair value estimates are calculated from standard Black-Scholes options pricing methodology, using prevailing market interest rates
and volatilities. The estimate of fair values for cross-currency swaps is calculated using discounted estimated future cash flows. Estimates of the future
floating-rate cash flows are based on quoted swap rates, future prices, interbank borrowing rates (“LIBOR”) and risk free rates (“SONIA”).

Additionally, a credit valuation adjustment/debit value adjustment is taken on derivative financial assets and liabilities and is calculated by discounting the
fair value gain or loss on the financial derivative using credit default swap (“CDS”) prices quoted for the counterparty or Jaguar Land Rover respectively.
CDS prices are obtained from Reuters.

The long-term borrowings are held at amortised cost. The fair value of the listed debt for disclosure purposes is determined using Level 1 valuation
techniques, based on the closing price as at 31 March 2023 on the Luxembourg Stock Exchange multilateral trading facility (“EURO MTF”) market, for
unsecured listed bonds. For bank loans, Level 2 valuation techniques are used.

Fair values of cash and cash equivalents, short-term deposits, trade receivables and payables, and other financial assets and liabilities (current and non-
current excluding derivatives and lease obligations) are assumed to approximate cost due to the short-term maturing of the instruments and as the
impact of discounting is not significant.

A n n ua l Re p o r t 2022/23 136
Other investments that are not equity accounted for are recognised at fair value. Where there is an active quoted market, the fair value is determined
using Level 1 valuation techniques, based on the closing price at year end. The valuation of such investments as at 31 March 2023 is £nil (2022, 2021:
£nil). Where there is no active quoted market, the fair values have been determined using Level 3 valuation techniques and the closing valuation as at
31 March 2023 is £43 million (2022: £30 million, 2021: £22 million). The fair value gain recognised in the consolidated income statement for Level 3
investments for the year ended 31 March 2023 is £9 million (2022: gain of £4 million, 2021: gain of £2 million).

Of the financial assets held at 31 March 2023 and classified as Level 3, 98 per cent (2022: 96 per cent, 2021: 94 per cent) were valued using recent
transaction values and 2 per cent (2022: 4 per cent, 2021: 6 per cent) were valued using an alternative technique.

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation
technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of all the amounts
that the Group could have realised in a sales transaction as of the respective dates. The estimated fair value amounts as at 31 March 2023, 2022 and
2021 have been measured as at the respective dates. As such, the fair values of these financial instruments subsequent to the respective reporting
dates may be different from the amounts reported at each year end.

(B) Financial risk management

The Group is exposed to foreign currency exchange rate, commodity price, interest rate, liquidity and credit risks. The Group has a risk management
framework in place, which monitors all of these risks as discussed below. This framework is approved by the Company’s Board of Directors.

Foreign currency exchange rate risk

The fluctuation in foreign currency exchange rates may have a potential impact on the consolidated income statement, the consolidated statement of
comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity and the consolidated cash flow statement,
where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency
of the respective consolidated entities.

Considering the countries and economic environment in which the Group operates, its operations are subject to risks arising from fluctuations in exchange
rates in those countries. The risks primarily relate to fluctuations in US Dollar, Chinese Yuan and Euro against the functional currency of the Company
and its subsidiaries.

Foreign exchange risk on future transactions is mitigated through the use of derivative contracts. The Group is also exposed to fluctuations in exchange
rates that impact the valuation of foreign currency denominated assets and liabilities of its National Sales Companies and also foreign currency
denominated balances on the Group’s consolidated balance sheet at each reporting period end. In addition to the derivatives designated in hedging
relationships as detailed in section (C), the Group enters into foreign currency contracts as economic hedges of recognised foreign currency debt.

The following table sets forth information relating to foreign currency exposure as at 31 March 2023:

Chinese
As at 31 March 2023 (£ millions) US Dollar Euro Others
Yuan
Financial assets 1,465 525 1,243 493
Financial liabilities (3,318) (1,178) (4,737) (301)
Net exposure (liability)/asset (1,853) (653) (3,494) 192
A10% appreciation/depreciation of the currency would result in
additional gain/(loss):
Impact on net income before tax for financial assets 147/(147) 53/(53) 124/(124) n/a
Impact on net income before tax for financial liabilities (332)/332 (118)/118 (474)/474 n/a
Impact on other comprehensive income for financial assets and liabilities - - - n/a

The following table sets forth information relating to foreign currency exposure as at 31 March 2022:

Chinese
As at 31 March 2022 (£ millions) US Dollar Euro Others
Yuan
Financial assets 1,640 393 1,036 420
Financial liabilities (3,557) (1,148) (4,220) (279)
Net exposure (liability)/asset (1,917) (755) (3,184) 141
A 10% appreciation/depreciation of the currency would result in
additional gain/(loss):
Impact on net income before tax for financial assets 164/(164) 39/(39) 104/(104) n/a
Impact on net income before tax for financial liabilities (356)/356 (115)/115 (422)/422 n/a
Impact on other comprehensive income for financial assets and liabilities - - - n/a

A n n ua l Re p o r t 2022/23 137
The following table sets forth information relating to foreign currency exposure as at 31 March 2021:

Chinese
As at 31 March 2021 (£ millions) US Dollar Euro Others
Yuan
Financial assets 1,726 342 1,118 311
Financial liabilities (3,267) (1,192) (4,259) (349)
Net exposure liability (1,541) (850) (3,141) (38)
A 10% appreciation/depreciation of the currency would result in
additional gain/(loss):
Impact on net income before tax for financial assets 173/(173) 34/(34) 111/(111) n/a
Impact on net income before tax for financial liabilites (327)/327 (119)/119 (426)/426 n/a
Impact on other comprehensive income for financial assets and liabilities - - - n/a

Commodity price risk

The Group is exposed to commodity price risk arising from the purchase of certain raw materials such as aluminium, copper, platinum and palladium. This
risk is mitigated through the use of derivative contracts and fixed-price contracts with suppliers. The derivative contracts are not hedge accounted and
are measured at fair value through profit or loss.

The total fair value loss on commodities of £132 million (2022: gain of £131 million, 2021: gain of £137 million) has been recognised in “Foreign exchange
(loss)/gain and fair value adjustments” in the consolidated income statement.

A 10 per cent appreciation/depreciation of all commodity prices underlying such contracts would have resulted in a gain/loss of £59 million (2022: £52
million, 2021: £41 million).

Interest rate risk

Interest rate risk is the risk that changes in market interest rates will lead to changes in interest income and expense for the Group.

In addition to issuing long-term fixed-rate bonds, the Group has other facilities in place that are primarily used to finance working capital and are subject
to variable interest rates. When undertaking a new debt issuance, the Company’s Board of Directors will consider the fixed/floating interest rate mix of
the Group, the outlook for future interest rates and the appetite for certainty of funding costs.

The Group uses cross-currency interest rate swaps to convert some of its issued debt from foreign currency denominated fixed-rate debt to GBP
floating-rate debt. The derivative instruments and the foreign currency fixed-rate debt may be designated in a hedging relationship.

As at 31 March 2023, short-term borrowings of £250 million (2022: £401 million, 2021: £253 million) and long-term borrowings of £1,061 million (2022:
£1,260 million, 2021: £1,037 million) were subject to a variable interest rate. An increase/decrease of 100 basis points in interest rates at the balance
sheet date would result in an impact of £13 million (2022: £17 million, 2021: £13 million) in the consolidated income statement.

The risk estimates provided assume a parallel shift of 100 basis points in interest rates across all yield curves. This calculation also assumes that the
change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year-end balances are not
necessarily representative of the average debt outstanding during the year.

Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.

The Group’s policy on liquidity risk is to maintain sufficient liquidity in the form of cash and undrawn borrowing facilities to meet the Group’s operating
requirements with an appropriate level of headroom.

A n n ua l Re p o r t 2022/23 138
The following are the undiscounted contractual maturities of financial liabilities, including estimated interest payments:

Carrying Contractual 1 year 1 to <2 2 to <5 5 years

As at 31 March 2023 (£ millions)
amount cash flows or less years years and over
Financial liabilities
Accounts payable 5,891 5,891 5,891 - - -
Long-term borrowings and accrued interest 4,651 5,707 251 1,529 2,989 938
Short-term borrowings and accrued interest 1,504 1,551 1,551 - - -
Lease obligations 710 1,196 118 103 243 732
Other financial liabilities 326 383 333 28 22 -
Derivative financial instruments 933 915 457 277 181 -
Total contractual maturities 14,015 15,643 8,601 1,937 3,435 1,670

Carrying Contractual 1 year 1 to <2 2 to <5 5 years

As at 31 March 2022 (£ millions)
amount cash flows or less years years and over
Financial liabilities
Accounts payable 5,144 5,144 5,144 - - -
Long-term borrowings and accrued interest 5,315 6,447 246 1,045 3,356 1,800
Short-term borrowings and accrued interest 1,793 1,833 1,833 - - -
Lease obligations 570 944 103 85 195 561
Other financial liabilities 307 325 293 32 - -
Derivative financial instruments 783 1,065 510 278 275 2
Total contractual maturities 13,912 15,758 8,129 1,440 3,826 2,363

Carrying Contractual 1 year 1 to <2 2 to <5 5 years

As at 31 March 2021 (£ millions)
amount cash flows or less years years and over
Financial liabilities
Accounts payable 6,308 6,308 6,308 - - -
Long-term borrowings and accrued interest 4,972 6,075 230 1,265 3,198 1,382
Short-term borrowings and accrued interest 1,206 1,239 1,239 - - -
Lease obligations 519 840 103 85 201 451
Other financial liabilities 445 390 383 7 - -
Derivative financial instruments 407 461 255 115 91 -
Total contractual maturities 13,857 15,313 8,518 1,472 3,490 1,833

Credit risk
Credit risk is the risk of financial loss to the Group if a counterparty to a financial instrument fails to meet its contractual obligation. The majority of the
Group’s credit risk pertains to the risk of financial loss arising from counterparty default on cash investments.

The carrying amount of financial assets represents the maximum credit exposure. None of the financial instruments of the Group result in material
concentrations of credit risks.

All Group cash is invested according to strict credit criteria and actively monitored by Group Treasury in conjunction with the current market valuation of
derivative contracts. To support this, the Company’s Board of Directors has implemented an investment policy that places limits on the maximum cash
investment that can be made with any single counterparty depending on their published external credit rating.

To a lesser extent the Group has an exposure to counterparties on trade receivables and other financial assets. The Group seeks to mitigate credit risk
on sales to third parties through the use of payment at the point of delivery, credit limits, credit insurance and letters of credit from banks that meet
internal rating criteria.

Financial assets
None of the Group’s cash equivalents, including term deposits with banks, are past due or impaired. Regarding other financial assets that are neither
past due nor impaired, there were no indications as at 31 March 2023 (2022 and 2021: no indications) that defaults in payment obligations will occur.

A n n ua l Re p o r t 2022/23 139
The Group has reviewed trade and other receivables not yet due and not impaired and no material issues have been identified. Trade receivables past
due and impaired are set out below:

2023 Net 2022 Net 2021 Net

As at 31 March 2023 2023 2022 2022 2021 2021
carrying carrying carrying
(£ millions) Gross impairment Gross impairment Gross impairment
value value value
Not yet due 981 (2) 979 640 (2) 638 747 (2) 745
Overdue
<3 months 34 - 34 74 - 74 88 - 88
Overdue 3-6 months
1 (1) - 8 - 8 10 - 10
Overdue >6 months 1 (1) - 4 (2) 2 25 (5) 20
Total 1,017 (4) 1,013 726 (4) 722 870 (7) 863

At 31 March 2021, included within trade receivables was £19 million of receivables that were part of a debt factoring arrangement. These assets did
not qualify for derecognition due to the recourse arrangements in place. The related liability of £19 million was in short-term borrowings at 31 March
2021. Both the asset and associated liability were classified as amortised cost. The facility was closed during the year ended 31 March 2022 so no such
receivables were held at 31 March 2022 or 2023.

Off-balance sheet financial arrangements

At 31 March 2023, Jaguar Land Rover Limited (a subsidiary of the Company) had sold £373 million equivalent of trade receivables under its debt factoring
facility, which was renewed during the year ended 31 March 2023 and increased from $500 million to $900 million. Included in trade receivables at 31
March 2023 is £70 million of trade receivables that were repurchased during the year.

(C) Derivatives and hedge accounting

The Group’s operations give rise to revenue, raw material purchases and borrowings in currencies other than the Group’s presentation currency of GBP.
The Group forecasts these transactions over the medium term and enters into derivative contracts to mitigate the resulting foreign currency exchange
risk, interest rate risk and commodity price risk. The Group’s risk management strategy allows for hedge accounting when the derivatives meet the
hedge accounting criteria as set out in IFRS 9 as well as the Group’s risk management objectives.

Commodity derivatives are not hedge accounted. Foreign currency forward contracts, foreign currency options and foreign currency denominated
borrowings may be designated as hedging instruments in a cash flow hedge relationship against forecast foreign currency transactions to mitigate
foreign currency exchange risk associated with those transactions.

In addition, the Group uses cross-currency interest rate swaps to hedge its foreign currency exchange risk associated with recognised borrowings. These
instruments may be designated in both cash flow and fair value hedging relationships, or may be economic hedges of debt. The Group also manages
foreign exchange risk on recognised borrowings using FX swaps. The Group utilises FX spot & FX swap contracts to manage operational requirements.

During the year, the Group designated US Dollar bonds with a principal amount of $1.2 billion in a cash flow hedge relationship against forecast US Dollar
revenue between the periods 2025 to 2027.

During the year ended 31 March 2023, the cross-currency interest rate swaps designated in a fair value and cash flow hedge against USD debt were
settled on their break date. The gain on the swaps was recognised during the year, with the settlement amount of the swaps deemed to be the best
indicator of fair value on break date. The fair value adjustment associated with the hedge will be amortised over the remaining life of the bond.

The gain/(loss) on the derivatives that are not designated in hedging relationships, whose fair value movements are recognised in ‘Foreign exchange
(loss)/gain and fair value adjustments’ in the consolidated income statement, is as follows:

Year ended 31 March (£ millions) 2023 2022 2021

Commodity derivative contracts (133) 131 137

Foreign currency derivative contracts 109 72 (77)
Interest rate derivative contracts 100 25 (47)
Total gain 76 228 13

A n n ua l Re p o r t 2022/23 140
During the year ended 31 March 2023, cross-currency interest rate swaps used in an economical hedge against USD debt were settled on their break
date. The gain on the swaps was recognised during the year, with the settlement amount of the swaps deemed to be the best indicator of fair value on
break date.

In all cases the Group uses a hedge ratio of 1:1. The critical terms of the derivative contracts are aligned with those of the hedged item. The Group
allows a maximum hedging term of five years for forecast transactions. The Group’s risk management policy allows for decreasing levels of hedging as
the forecasting horizon increases.

A 10 per cent depreciation/appreciation in Sterling against the foreign currency underlying contracts within the Group’s derivative portfolio that are
sensitive to changes in foreign exchange rates (including the impact to the fair value adjustment of foreign currency borrowing designated as the hedged
item in a fair value hedge relationship, excluding US Dollar bonds designated in a cash flow hedging relationship) would have resulted in the approximate
additional (loss)/gain shown in the table below:

As at 31 March (£ millions) 2023 2022 2021

10% depreciation in Sterling against the foreign currency:

In other comprehensive income (1,413) (1,119) (571)
In the consolidated income statement 540 476 299

10% appreciation in Sterling against the foreign currency:

In other comprehensive income 1,214 959 480
In the consolidated income statement (438) (369) (231)

The following table sets out the change in the Group’s exposure to interest rate risk as a result of hedge accounted cross-currency interest rate swaps:

Foreign currency receivable Reporting currency payable

average interest rate average interest rate
% % % % % %
Outstanding contracts
2023 2022 2021 2023 2022 2021
Cross currency interest rate swaps
< 1 year - - - - - -
Between 1-5 years 4.500 4.500 - SONIA + 5.247 SONIA + 4.777 -
>5 years - 4.500 4.500 - LIBOR + 2.033 LIBOR + 3.235

A n n ua l Re p o r t 2022/23 141
The following table shows the impact that would result from interest rate derivatives and any related hedging relationships given an increase/decrease
of 100 basis points in interest rates at the balance sheet date:

As at 31 March (£ millions) 2023 2022 2021

100 basis points depreciation in interest rates

In the consolidated income statement (2) (22) (1)

100 basis points appreciation in interest rates

In the consolidated income statement 2 21 1

Cash flow hedges

The Group uses foreign currency options, foreign currency forward contracts and recognised foreign currency borrowings as the hedging instruments
in cash flow hedge relationships of hedged sales and purchases. The time value of options and the foreign currency basis spread of foreign exchange
forward contracts are excluded from the hedge relationship and are recognised in other comprehensive income as a cost of hedging to the extent they
relate to the hedged item (the aligned value). Additionally, the Group uses cross-currency interest rate swaps as the hedging instrument of the foreign
exchange risk of recognised foreign currency borrowings.

Changes in the fair value of foreign currency contracts, to the extent determined to be an effective cash flow hedge, are recognised in the consolidated
statement of comprehensive income, and the ineffective portion of the fair value change is recognised in the consolidated income statement. The main
sources of ineffectiveness are timing differences in the payment of the hedging instrument and hedged item and application differences in relation to
discounting of the hedged item in comparison to the hedging instrument.

It is anticipated that the hedged sales will take place over the next one to five years, at which time the amount deferred in equity will be reclassified to
revenue in the consolidated income statement.

It is anticipated that the hedged purchases will take place over the next one to five years, at which time the amount deferred in equity will be included
in the carrying amount of the raw materials. On sale of the finished product, the amount previously deferred in equity and subsequently recognised in
inventory will be reclassified to material and other cost of sales in the consolidated income statement.

The foreign currency borrowings designated as the hedged item mature in January 2026, at which time the amount deferred in equity will be reclassified
to the consolidated income statement.

A n n ua l Re p o r t 2022/23 142
The table below sets out the timing profile of the hedge accounted derivatives:

Carrying value (liabilities) /

Outstanding contracts Average strike rate Nominal amounts
assets
2023 2022 2021 2023 2022 2021
As at 31 March 2023 2022 2021
£m £m £m £m £m £m
Cash flow hedges of foreign
exchange risk on forecast
transactions
Derivative instruments
Sell - USD
<1 year 0.7528 0.7604 0.7596 2,761 2,882 2,833 (188) 5 136
Between 1-5 years 0.7581 0.7361 0.7654 4,199 3,734 3,096 (234) (77) 172

Sell - Chinese Yuan

<1 year 0.1139 0.1094 0.1098 2,674 2,819 1,647 (114) (235) 12
Between 1-5 years 0.1159 0.1123 0.1088 4,894 3,521 629 (184) (126) 11

Buy - Euro
<1 year 0.8915 0.8875 0.9069 1,984 2,892 2,695 20 (111) (136)
Between 1-5 years 0.9129 0.8860 0.9010 41 1,254 1,899 - (5) (81)

Other currencies
<1 year 730 873 1,145 (6) (17) 24
Between 1-5 years 848 870 846 (2) (28) 7
Debt instruments denominated in
foreign currency
Sell - USD
Between 1-5 years 0.6287 1,068 (968)

Total cash flow hedges of foreign

exchange risk on forecast 19,199 18,845 14,790 (1,676) (594) 145
transactions
Hedges of foreign exchange risk on
recognised debt
Cross currency interest rate
swaps
USD
>5 years - 0.7592 0.7592 - 380 380 - 1 7

EUR
Between 1-5 years 0.8912 0.8912 - 446 446 - (50) (39) -
>5 years - - 0.8912 - - 446 - - (14)

Total cash flow hedges of foreign

446 826 826 (50) (38) (7)
exchange risk on recognised debt

The line items in the consolidated balance sheet that include the above derivative instruments are “Other financial assets” and “Other financial liabilities”.

A n n ua l Re p o r t 2022/23 143
The following table sets out the effect of the Group’s cash flow hedges on the financial performance of the Group:

Year ended 31 March (£ millions) 2023 2022 2021

Fair value (loss)/gain of foreign currency derivative contracts

(744) (816) 446
recognised in hedging reserves
Fair value gain/(loss) of derivatives hedging foreign currency
7 5 (9)
borrowings recognised in hedging reserves
(Loss)/gain recognised in other comprehensive income in the year (737) (811) 437
(Loss)/gain reclassified from cash flow hedging reserve and
(590) 75 (112)
recognised in ‘Revenue’ in the income statement
(Loss)/gain reclassified from cash flow hedging reserve and
recognised in Foreign exchange (loss)/gain and fair value
(12) 10 3
adjustments’ in the income statement on account of forecast
transactions no longer expected to occur
(Loss)/gain reclassified to profit and loss in the year (602) 85 (109)
Net change in the hedged item used for assessing hedge
(148) (762) 534
effectiveness
Gain/(loss) on derivatives not hedge accounted, recognised in
'Foreign exchange (loss)/gain and fair value adjustments' in the 108 72 (77)
income statement

The following amounts have been recognised in the P&L during the year in relation to US bonds designated as hedging instruments in cash flow hedges:

Year ended 31 March (£ millions) 2023 2022 2021

Net loss in the hedged item used for assessing hedge effectiveness (55) - -
Fair value gain in the hedging instruments used in assessing hedge
effectiveness, taken to the consolidated income statement in 95 - -
‘Foreign exchange (loss)/gain and fair value adjustments’
Ineffectiveness recognised in the consolidated income statement in
40 - -
‘Foreign exchange (loss)/gain and fair value adjustments’

Fair value hedges

During the year ended 31 March 2023, the Group used cross-currency interest rate swaps as the hedging instrument in a fair value hedge of foreign
exchange and interest rate risks of foreign currency denominated debt. The derivatives converted foreign currency USD and EUR fixed-rate borrowings
to GBP floating-rate debt.

The USD swaps were settled during the year ended 31 March 2023.

The fair value of the cross-currency interest rate swaps, included in “Derivatives in hedging relationship” in section (A), are as follows:

As at 31 March (£ millions) 2023 2022 2021

Other financial assets - current - - -

Other financial assets - non-current - 1 7
Total financial assets - 1 7
Other financial liabilities - current 37 - -
Other financial liabilities - non-current 12 39 14
Total financial liabilities 49 39 14

A n n ua l Re p o r t 2022/23 144
The following amounts have been recognised in relation to fair value hedges in the consolidated income statement:

Year ended 31 March (£ millions) 2023 2022 2021

Net gain in the hedged item used for assessing hedge effectiveness,
taken to the consolidated income statement in ‘Foreign exchange 26 51 108
(loss)/gain and fair value adjustments’
Fair value changes in the derivative instruments used in assessing
hedge effectiveness, taken to the consolidated income statement in 1 (36) (58)
‘Foreign exchange (loss)/gain and fair value adjustments’
Ineffectiveness recognised in the consolidated income statement in
27 15 50
‘Foreign exchange (loss)/gain and fair value adjustments’

38 LEASES

At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control
the use of an identified asset, the Group assesses whether:

• The contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent
substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
• The Group has the right to substantially all of the economic benefits from the use of the asset throughout the period of use; and
• The Group has the right to direct the use of the asset. The Group has this right when it has the decision making rights that are most relevant to
changing how and for what purposes the asset is used. In rare cases where the decision about how and for what purpose the asset is used is
predetermined, the Group has the right to direct the use of the asset if either:
• The Group has the right to operate the asset; or
• The Group designed the asset in a way that predetermines how and for what purposes it will be used.

At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease
component on the basis of their relative stand-alone prices.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost,
which comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial
direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is
allocated, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method over the shorter of the useful life of the leased asset and the expected
lease term. If ownership of the leased asset is automatically transferred at the end of the lease term or the exercise of a purchase option is reflected in
the lease payments, the right-of-use asset is amortised on a straight-line basis over the expected useful life of the leased asset.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its
incremental borrowing rate as a discount rate. The lease liability is measured at amortised cost using the effective interest method. It is remeasured
when there is a change in future lease payments. The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less and leases of low value assets. The Group recognises the lease payments associated with these leases as
an expense on a straight-line basis over the lease term.

Lease payments include fixed payments, i.e. amounts expected to be payable by the Company under residual value guarantee, the exercise price of
purchase options and lease payments in relation to lease extension options, if the Company is reasonably certain to exercise purchase or extension
options, and payment of penalties for terminating the lease if the lease term considered reflects that the Company shall exercise a termination option.

The Group applies the practical expedient to not assess whether rent concessions occurring as a direct consequence of the COVID-19 pandemic that
meet the following conditions are lease modifications:

• The change in lease payments results in revised consideration that is substantially the same, or less than the consideration for the lease immediately
preceding the change;
• Any reduction in lease payments affects only payments originally due on or before 30 June 2022; and
• There no substantive changes to other terms and conditions of the lease.

Changes to lease payments for such leases are accounted for as if they are not lease modifications.

A n n ua l Re p o r t 2022/23 145
The Group leases a number of buildings, plant and equipment, IT hardware and software assets, certain of which have a renewal and/or purchase
options in the normal course of the business. Extension and termination options are included in a number of leases across the Group. These are used to
maximise operational flexibility in terms of managing the assets used in the Group’s operation. The majority of extension and termination options held are
exercisable only by the Group and not by the respective lessor. The Group assesses at lease commencement whether it is reasonably certain to exercise
the extension or termination option. The Group reassesses whether it is reasonably certain to exercise options if there is a significant event or significant
change in circumstances within its control. The Group’s leases mature between 2023 and 2051.

There are no leases with residual value guarantees.

Right-of-use assets

Fixtures
Land and IT Plant and
£ millions Vehicles and Other Total
buildings equipment equipment
fittings
Balance at 31 March 2023 573 8 37 4 12 1 635
Balance at 31 March 2022 504 6 41 3 13 1 568
Balance at 31 March 2021 475 6 45 3 12 2 543

Depreciation charge for the year ended 31

62 4 16 3 1 1 87
March 2023
Depreciation charge for the year ended 31
60 4 17 3 1 2 87
March 2022
Depreciation charge for the year ended 31
63 7 17 5 1 1 94
March 2021

Additions to right-of-use assets during the year ended 31 March 2023 was £137 million (2022: £131 million, 2021: £70 million).

The Group has not entered into any sale and leaseback transactions during the year ended 31 March 2023.

The Group entered into a sale and leaseback transaction during the year ended 31 March 2022. The transfer of the Group asset did not satisfy the
sale requirements of IFRS 15 and, therefore, is still retained on the Group balance sheet. An initial financial liability was recognised equal to the transfer
proceeds of £33 million in accordance with IFRS 9 in borrowings in note 27. The lessee accounting principles described above under IFRS 16 have been
applied to the leaseback transaction, with the initial right of use asset of £94 million recognised in land and buildings.

Lease liabilities

The maturity analysis of the contractual undiscounted cash flows is as follows:

As at 31 March (£ millions) 2023 2022 2021

Less than one year 118 103 103
Between one and five years 346 280 286
More than five years 732 561 451
Total undiscounted lease liabilities 1,196 944 840

Included in undiscounted lease liability maturities above is £nil million (2022: £1 million, 2021: £15 million) in relation to leases committed but not yet
commenced at the balance sheet date.

The following amounts are included in the consolidated balance sheet:

As at 31 March (£ millions) 2023 2022 2021

Current lease liabilities 70 62 65
Non-current lease liabilities 640 508 454
Total lease liabilities 710 570 519

A n n ua l Re p o r t 2022/23 146
The following amounts are recognised in the consolidated income statement:

Year ended 31 March (£ millions) 2023 2022 2021

Interest expense on lease liabilities 54 45 44
Expenses related to short-term leases 10 10 9
Expenses related to low-value assets, excluding
12 9 7
short-term leases of low-value assets
Expense/(credit) in lease payments arising from COVID-19 rent
- 1 (3)
concessions

The following amounts are recognised in the consolidated cash flow statement:

Year ended 31 March (£ millions) 2023 2022 2021

Cash payments for the principal portion of lease
72 71 79
liabilities (within ‘payments of lease obligations’)
Cash payments for interest expense related to lease liabilities (within
54 45 44
‘finance expenses and fees paid’)
Total cash outflow for leases 126 116 123

Leases as a lessor

The majority of the leases where the Group is a lessor are in relation to vehicles. The Group classifies these as operating leases, because they do not
transfer substantially all of the risks and rewards incidental to the ownership of the assets.

The maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date, are as follows:

As at 31 March (£ millions) 2023 2022 2021

Less than one year 4 4 3
Between one and five years 7 3 2
More than five years 10 12 11
Total undiscounted lease payments to be received 21 19 16

39 S E G M E N TA L R E P O R T I N G

Operating segments are defined as components of the Group about which separate financial information is available that is evaluated regularly by the
chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance.

The Group operates in the automotive segment. The automotive segment includes all activities relating to design, development, manufacture and
marketing of vehicles including financing thereof, as well as sale of related parts and accessories and services from which the Group derives its revenues.
The Group has only one operating segment, so no separate segment report is given.

The geographic spread of sales by customer location and non-current assets is as disclosed below:

(£ millions) UK US Rest of Europe Rest of World China Total

31 March 2023
Revenue 3,932 5,196 4,327 4,773 4,581 22,809
Non-current assets 9,741 55 873 189 136 10,994

31 March 2022
Revenue 3,164 4,320 3,248 3,412 4,176 18,320
Non-current assets 10,311 60 982 203 131 11,687

31 March 2021
Revenue 3,790 4,664 3,563 3,153 4,561 19,731
Non-current assets 10,932 53 1,047 218 141 12,391

A n n ua l Re p o r t 2022/23 147
40 N O T E S T O T H E C O N S O L I D AT E D C A S H F L O W S TAT E M E N T

(A) Reconciliation of loss for the year to cash generated from operating activities

Year ended 31 March (£ millions) Note 2023 2022 2021

Loss for the year (60) (822) (1,100)

Adjustments for:
Depreciation and amortisation 2,042 1,944 1,976
Write-down of tangible assets 10 - 3 -
Write-down of intangible assets 10 - 9 40
Fair value adjustments in relation to assets held for sale 10 26 - -
Loss/(profit) on disposal of assets 14 10 (1) (1)
Foreign exchange on debt, derivatives and balance sheet revaluation* 14 38 (249)
Foreign exchange (gain)/loss on restricted deposits - (2) 1
Income tax expense 15 157 367 239
Finance expense (net) 13 507 369 251
Finance income 13 (67) (9) (11)
Unrealised loss/(gain) on commodities 12 163 (48) (137)
Gain on matured revenue hedges - - (6)
Share of (profit)/loss of equity accounted investments 16 (15) 18 41
Fair value gain on equity investments 12 (9) (4) (2)
Exceptional items 4 (161) 43 1,523
Other non-cash adjustments - 3 (5)
Cash flows from operating activities before changes in assets and liabilities 2,607 1,908 2,560
Trade receivables and other assets* (450) (292) 390
Other financial assets 166 8 (35)
Inventories (489) 254 459
Accounts payable, other liabilities and retirement benefit obligations* 698 (852) (519)
Other financial liabilities 17 (95) (130)
Provisions 41 (359) (189)
Cash generated from operations 2,590 572 2,536

*The comparatives for the year ended 31 March 2022 and 31 March 2021 have been re-presented to align with presentation changes for the year
ended 31 March 2023, to combine foreign exchange on debt, derivatives and balance sheet revaluation into a single line; and to group cetain
working capital movements. This has not resulted in any change to repor ted ‘cash flows from operating activities before changes in assets and
liabilities’ or ‘cash generated from operations’.

A n n ua l Re p o r t 2022/23 148
(B) Reconciliation of movements of liabilities to cash flows arising from financing activities

Lease Interest
(£ millions) Borrowings Total
obligations accrued
Balance at 1 April 2020 5,343 541 65 5,949
Cash flows
Proceeds from issue of financing 1,953 - - 1,953
Repayment of financing (749) (79) - (828)
Arrangement fees paid (11) - - (11)
Interest paid - (44) (249) (293)
Non-cash movements
Issue of new leases - 71 - 71
Interest accrued - 44 271 315
Foreign exchange (323) (14) (3) (340)
Fee amortisation 11 - - 11
Fair value adjustment on loans (46) - - (46)
Balance at 31 March 2021 6,178 519 84 6,781
Cash flows
Proceeds from issue of financing 2,095 - - 2,095
Repayment of financing (1,347) (71) - (1,418)
Arrangement fees paid (13) - - (13)
Interest paid - (45) (322) (367)
Non-cash movements
Issue of new leases - 136 - 136
Lease terminations - (27) - (27)
Interest accrued - 45 331 376
Foreign exchange 169 13 2 184
Fee amortisation 11 - - 11
Fair value adjustment on loans (66) - - (66)
Balance at 31 March 2022 7,027 570 95 7,692
Cash flows
Proceeds from issue of financing 1,261 - - 1,261
Repayment of financing (2,426) (72) - (2,498)
Interest paid - (54) (384) (438)
Non-cash movements
Issue of new leases - 209 - 209
Interest accrued - 54 377 431
Foreign exchange 325 3 7 335
Fee amortisation 12 - - 12
Bond revaluation in hedge reserve (55) - - (55)
Fair value adjustment on loans (66) - - (66)
Balance at 31 March 2023 6,078 710 95 6,883

Included within ‘finance expenses and fees paid’ in the consolidated cash flow statement is £57 million (2022: £22 million, 2021: £9 million) of cash
interest paid relating to other assets and liabilities not included in the reconciliation above.

A n n ua l Re p o r t 2022/23 149
41 R E L AT E D PA R T Y T R A N S A C T I O N S

Tata Sons Private Limited is a company with significant influence over the Group’s ultimate parent company Tata Motors Limited. The Group’s related
parties therefore include Tata Sons Private Limited, subsidiaries and joint ventures of Tata Sons Private Limited and subsidiaries, joint ventures and
associates of Tata Motors Limited. The Group routinely enters into transactions with its related parties in the ordinary course of business, including
transactions for the sale and purchase of products with its joint ventures, and IT and consultancy services received from subsidiaries of Tata Sons Private
Limited.

All transactions with related parties are conducted under normal terms of business and all amounts outstanding are unsecured and will be settled in
cash.

Transactions and balances with the Group’s own subsidiaries are eliminated on consolidation.

The table below summarises related party transactions and balances not eliminated in the consolidated financial statements.

Associates Tata Sons Private Limited, Immediate or ultimate parent

(£ millions) Joint ventures and their its subsidiaries and joint and its subsidiaries, joint
subsidiaries ventures ventures and associates
31 March 2023
Sale of products 253 - 2 33
Purchase of goods 59 91 - 95
Services received - - 195 100
Services rendered 110 - - 3
Trade and other receivables 33 - - 43
Accounts payable - 3 26 33
31 March 2022
Sale of products 263 - 2 26
Purchase of goods 39 - - 82
Services received - - 152 72
Services rendered 97 - - 1
Trade and other receivables 30 - - 25
Accounts payable - - 16 30
31 March 2021
Sale of products 284 - 2 15
Purchase of goods - - 1 72
Services received - 1 123 68
Services rendered 111 - - 1
Trade and other receivables 48 - 1 32
Accounts payable - - 13 43

Compensation of key management personnel

Year ended 31 March (£ millions) 2023 2022 2021

Short-term benefits 19 20 15
Post-employment benefits - - 2
Other long-term employee benefits - (1) 2
Compensation for loss of office 2 5 -
Total compensation of key management personnel 21 24 19

42 U LT I M A T E P A R E N T C O M P A N Y A N D P A R E N T C O M P A N Y O F L A R G E R G R O U P

The immediate parent undertaking is TML Holdings Pte. Ltd. (Singapore), which is the parent for the smallest group to consolidate these financial
statements. The ultimate parent undertaking and controlling party is Tata Motors Limited, India, which is the parent of the largest group to consolidate
these financial statements.

Copies of the TML Holdings Pte. Ltd. (Singapore) consolidated financial statements can be obtained from the Company Secretary, TML Holdings Pte. Ltd.,
9 Battery Road #15-01 MYP Centre, Singapore 049910.

Copies of the Tata Motors Limited, India consolidated financial statements can be obtained from the Company Secretary, Tata Motors Limited, Bombay
House, 24, Homi Mody Street, Mumbai-400001, India.

43 SUBSEQUENT EVENTS

There have been no material subsequent events between the balance sheet date and the date of signing this report.

A n n ua l Re p o r t 2022/23 150
PA R E N T C O M PA N Y F I N A N C I A L S TAT E M E N T S

PA R E N T C O M PA N Y B A L A N C E S H E E T

As at 31 March (£ millions) Note 2023 2022 2021

Non-current assets
Investments 44 1,655 1,655 1,655
Other financial assets 45 4,686 5,288 4,964
Other non-current assets 46 9 4 -
Total non-current assets 6,350 6,947 6,619
Current assets
Other financial assets 45 1,358 1,727 1,074
Other current assets 46 - 4 1
Cash and cash equivalents - - -
Total current assets 1,358 1,731 1,075
Total assets 7,708 8,678 7,694
Current liabilities
Other financial liabilities 48 87 85 82
Deferred finance income 2 6 1
Short-term borrowings 49 820 1,180 524
Current tax liabilities 1 4 5
Total current liabilities 910 1,275 612
Non-current liabilities
Long-term borrowings 49 4,697 5,280 4,959
Deferred finance income 35 37 33
Total non-current liabilities 4,732 5,317 4,992
Total liabilities 5,642 6,592 5,604
Equity attributable to shareholder of the parent
Ordinary shares 50 1,501 1,501 1,501
Capital redemption reserve 50 167 167 167
Retained earnings 398 418 422
Equity attributable to equity holders of the parent 2,066 2,086 2,090
Total liabilities and equity 7,708 8,678 7,694

The Company has elected to take the exemption under section 408 of the Companies Act 2006 from presenting the parent company income statement.
The loss for the Company for the year was £20 million (2022: loss of £4 million, 2021: loss of £6 million).

The notes on pages 153 to 163 are an integral part of the these financial statements.

These parent company financial statements were approved by the the Company’s Board of Directors and authorised for issue on 1st June 2023.

They were signed on its behalf by:

ADRIAN MARDELL
INTERIM CHIEF EXECUTIVE OFFICER
COMPANY REGISTERED NUMBER: 06477691

A n n ua l Re p o r t 2022/23 151
PA R E N T C O M PA N Y S TAT E M E N T O F C H A N G E S I N E Q U I T Y

(£ millions) Ordinary share capital Capital redemption reserve Retained earnings Total equity

Balance at 1 April 2022 1,501 167 418 2,086

Loss for the year - - (20) (20)
Total comprehensive expense - - (20) (20)
Dividend - - - -
Balance at 31 March 2023 1,501 167 398 2,066

Balance at 1 April 2021 1,501 167 422 2,090

Loss for the year - - (4) (4)
Total comprehensive expense - - (4) (4)
Dividend - - - -
Balance at 31 March 2022 1,501 167 418 2,086

Balance at 1 April 2020 1,501 167 428 2,096

Loss for the year - - (6) (6)
Total comprehensive expense - - (6) (6)
Dividend - - - -
Balance at 31 March 2021 1,501 167 422 2,090

The notes on pages 153 to 163 are an integral part of these financial statements.

PA R E N T C O M PA N Y C A S H F L O W S TAT E M E N T

Year ended 31 March (£ millions) 2023 2022 2021

Cash flows from operating activities
Loss for the year (20) (4) (6)
Adjustments for:
Allowances for other financial assets 8 3 7
Foreign exchange loss 8 - -
Finance income (370) (319) (259)
Finance expense 376 320 257
Cash flows generated from/(used in) operating activities before changes in
2 - (1)
assets and liabilities
Other financial assets 2 - 3
Other current liabilities (2) 4 (2)
Net cash generated from operating activities 2 4 -
Cash flows from investing activities
Finance income received 384 323 236
Loans made to subsidiaries - (1,417) (1,034)
Repayments of loans by subsidiaries 1,235 558 425
Net cash generated from/(used in) investing activities 1,619 (536) (373)
Cash flows from financing activities
Finance expenses and fees paid (386) (327) (236)
Proceeds from issuance of borrowings - 1,417 1,034
Repayment of borrowings (1,235) (558) (425)
Net cash (used in)/generated from financing activities (1,621) 532 373
Net change in cash and cash equivalents - - -
Cash and cash equivalents at beginning of year - - -
Cash and cash equivalents at end of year - - -

The notes on pages 153 to 163 are an integral part of these financial statements.

A n n ua l Re p o r t 2022/23 152
N O T E S T O T H E PA R E N T C O M PA N Y F I N A N C I A L S TAT E M E N T S

44 INVESTMENTS

Investments consist of the following:

As at 31 March (£ millions) 2023 2022 2021

Cost of unquoted equity investments at beginning and end of year 1,655 1,655 1,655

The Company has not made any investments or disposals of investments in the year.

The Company has the following 100 per cent direct interest in the ordinary shares of a subsidiary undertaking:

Principle place of business and

Subsidiary undertaking Registered office address
country of incorporation
Abbey Road, Whitley, Coventry, CV3
Jaguar Land Rover Holdings Limited England and Wales
4LF, England

The shareholding above is recorded at acquisition value in the Company’s accounts. Details of the indirect subsidiary undertakings are as follows:

Principle place of
Name of company Shareholding business and country Registered office address
of incorporation

Jaguar Land Rover Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

Jaguar Land Rover North America, LLC. 100% USA 100 Jaguar Land Rover Way, Mahwah, NJ 07495,
USA

Jaguar Land Rover Deutschland GmbH 100% Germany Campus Kronberg 7, 61476, Kronberg im Taunus,
Germany

Jaguar Land Rover Belux N.V. 100% Belgium Generaal Lemanstraat 47, 2018 Antwerpen,
Belgium

Jaguar Land Rover Austria GmbH 100% Austria Siezenheimer Strasse 39a, 5020 Salzburg,
Austria

Jaguar Land Rover Italia SpA 100% Italy Via Alessandro Marchetti, 105 - 00148, Roma,
Italy

Jaguar Land Rover Australia Pty Ltd 100% Australia 189 O’Riordan Street, Mascot, 2020, NSW,
Australia

Jaguar Land Rover Espana SL 100% Spain Torre Picasso, Plaza Pablo Ruiz Picasso, 1 –
Planta 42, 28020 Madrid, Spain

Jaguar Land Rover Nederland BV 100% Holland PO Box 40, Stationsweg 8, 4153 RD Beesd,
Netherlands

Jaguar Land Rover Portugal -Veiculos e Pecas, 100% Portugal Rua. Do Pólo Sul Nº2 - 3ºB-3, Parque das
Lda. Naçoes, 1990- 273, Lisboa, Portugal

Jaguar Land Rover (China) Investment Co., 100% China 11F, No.06 (Building D) The New Bund World
Ltd (formerly Jaguar Land Rover Automotive Trade Center (Phase II), Lane 227 Dongyu Road,
Trading (Shanghai) Co. Ltd) Pudong New District, Shanghai 200126, China

A n n ua l Re p o r t 2022/23 153
 Principle place of
Name of company Shareholding business and country Registered office address
of incorporation
Shanghai Jaguar Land Rover Automotive 100% China 11F, No.06 (Building D) The New Bund World Trade
Service Co. Ltd Center (Phase II), Lane 227 Dongyu Road, Pudong
New District, Shanghai 20012, China
Jaguar Land Rover Japan Limited 100% Japan 3-13 Toranomon 4-chome, Minato-ku, Tokyo,
Japan, 45

Jaguar Land Rover Korea Co. Limited 100% Korea 25F West Mirae Asset Center 1 Building 67 Suha-
dong, Jung-gu Seoul 100-210, Korea

Jaguar Land Rover Canada ULC 100% Canada 75 Courtneypark Drive West, Unit 3 Mississauga,
ON L5W 0E3,Canada

Jaguar Land Rover France SAS 100% France Z.A. Kleber – Batiment Ellington, 165 Boulevard de
Valmy, 92706 Colombes, Cedex, France

Jaguar e Land Rover Brasil Indústria e 100% Brazil Avenida Ibirapuera 2.332, Torre I - 10º andar-
Comércio de Veículos LTDA Moema, 04028-002, São Paulo, SP, Brazil

Jaguar Land Rover Limited Liability Company 100% Russia 28B, Building 2 Mezhdunarodnoe Shosse 141411,
Moscow, Russian Federation

Jaguar Land Rover (South Africa) Holdings 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England
Limited

Jaguar Land Rover (South Africa) (Pty) Limited 100% South Africa Simon Vermooten Road, Silverton, Pretoria 0184,
South Africa

Jaguar Land Rover India Limited 100% India Nanavati Mahalaya, 3rd floor, 18, Homi Mody
Street, Mumbai, Maharashtra, India 400001

Daimler Transport Vehicles Limited (dormant) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

S S Cars Limited (dormant) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

The Lanchester Motor Company Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England
(dormant)

The Daimler Motor Company Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England
(dormant)

Jaguar Land Rover Pension Trustees Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England
(dormant)

JLR Nominee Company Limited (non-trading) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

Jaguar Cars Limited (dormant) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

Land Rover Exports Limited (non-trading) 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

Land Rover Ireland Limited (non-trading) 100% Ireland c/o LK Shields Solicitors, 39/40 Upper Mount
Street, Dublin 2, Ireland

Jaguar Cars South Africa (Pty) Ltd (dormant) 100% South Africa Simon Vermooten Road, Silverton, Pretoria 0184,
South Africa

Jaguar Land Rover Slovakia s.r.o. 100% Slovakia Horné lúky, 4540/1, 949 01 Nitra, Slovakia

Jaguar Land Rover Singapore Pte. Ltd 100% Singapore 138 Market Street, CapitaGreen, Singapore,
048946

A n n ua l Re p o r t 2022/23 154
 Principle place of
Name of company Shareholding business and country Registered office address
of incorporation
Jaguar Racing Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

In-Car Ventures Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

InMotion Ventures Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

InMotion Ventures 2 Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

InMotion Ventures 3 Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

Jaguar Land Rover Colombia SAS (dormant) 100% Colombia CL 67735 OFE, 1204 Bogotan Cundinamarka 1
3192 900, Colombia

Jaguar Land Rover México, S.A.P.I. de C.V. 100% Mexico Av. Javier Barros Sierra No.540 Piso 7 Oficina
703, Col. Santa Fe la Fe Del., Alvaro Obregón,
México, D.F. C.P. 01210
Jaguar Land Rover Servicios México, S.A. de C.V. 100% Mexico Av. Javier Barros Sierra No.540 Piso 7 Oficina
703, Col. Santa Fe la Fe Del., Alvaro Obregón,
México, D.F. C.P. 01210
Jaguar Land Rover Taiwan Company LTD 100% Taiwan 12F, No. 40, Sec. 1, Chengde Road, Datong Dist.,
Taipei, City 103, Taiwan (R.O.C.)

Jaguar Land Rover Ireland (Services) Limited 100% Ireland C/o LK Shields Solicitors 39/40 Upper Mount
Street Dublin 2 Ireland

Jaguar Land Rover Classic USA LLC (dormant) 100% USA 251 Little Falls Drive, Wilmington, Delaware, USA

Jaguar Land Rover Classic Deutschland GmbH 100% Germany Ringstraße 38, 45219 Essen, Germany

Jaguar Land Rover Hungary KFT 100% Hungary Regus Capital Square, Vaci ut 76, 1133,
Budapest, Hungary

Jaguar Land Rover (Ningbo) Trading Co., Ltd. 100% China Office Building 12, No.1 Meishan Salt, Beilun
District, Ningbo, Zhejiang Province, China

Jaguar Land Rover Ventures Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

Bowler Motors Limited 100% England and Wales Abbey Road, Whitley, Coventry, CV3 4LF, England

Details of the indirect holdings in equity accounted investments are given in note 16 to the consolidated financial statements.

A n n ua l Re p o r t 2022/23 155
45 OTHER FINANCIAL ASSETS

As at 31 March (£ millions) 2023 2022 2021

Non-current
Receivables from subsidiaries 4,686 5,288 4,964
Current
Receivables from subsidiaries 1,358 1,727 1,074

£4,686 million (2022: £5,288 million, 2021: £4,964 million) of non-current receivables from subsidiaries and £815 million (2022: £1,260 million, 2021:
£599 million) of current receivables from subsidiaries comprise of loans to indirect subsidiaries under terms matching the external interest-bearing loans
and borrowings given in note 49.

46 OTHER ASSETS

As at 31 March (£ millions) 2023 2022 2021

Non-current
Prepaid expenses 9 4 -
Current
Prepaid expenses - 4 1

47 D E F E R R E D TA X A S S E T S A N D L I A B I L I T I E S

As at 31 March 2023, 2022 and 2021 the Company had recognised no deferred tax assets or liabilities.

48 OTHER FINANCIAL LIABILITIES

As at 31 March (£ millions) 2023 2022 2021

Current
Interest accrued 86 84 79
Other 1 1 3
Total current other financial liabilities 87 85 82

49 I N T E R E S T- B E A R I N G L O A N S A N D B O R R O W I N G S

As at 31 March (£ millions) 2023 2022 2021

EURO MTF listed debt 3,644 4,020 3,922
Bank loans 1,053 1,260 1,037
Long-term borrowings 4,697 5,280 4,959
Current portion of long-term EURO MTF listed debt 571 779 399
Current portion of long-term bank loans 249 401 125
Short-term borrowings 820 1,180 524

A n n ua l Re p o r t 2022/23 156
Euro MTF listed debt

The bonds are listed on the Luxembourg Stock Exchange multilateral trading facility (“EURO MTF”) market. Details of the tranches of the bonds outstanding
at 31 March 2023 are as follows:

• €650 million Senior Notes due 2024 at a coupon of 2.200 per cent per annum – issued January 2017
• $500 million Senior Notes due 2027 at a coupon of 4.500 per cent per annum – issued October 2017
• €500 million Senior Notes due 2026 at a coupon of 4.500 per cent per annum – issued September 2018
• €500 million Senior Notes due 2024 at a coupon of 5.875 per cent per annum – issued November 2019
• €500 million Senior Notes due 2026 at a coupon of 6.875 per cent per annum – issued November 2019
• $700 million Senior Notes due 2025 at a coupon of 7.750 per cent per annum – issued October 2020
• $650 million Senior Notes due 2028 at a coupon of 5.875 per cent per annum – issued December 2020
• $500 million Senior Notes due 2029 at a coupon of 5.500 per cent per annum – issued July 2021
• €500 million Senior Notes due 2028 at a coupon of 4.500 per cent per annum – issued July 2021

Details of the tranches of the bond repaid in the year ended 31 March 2023 are as follows:

• $500 million Senior Notes due 2023 at a coupon of 5.625 per cent per annum – issued January 2013
• £400 million Senior Notes due 2023 at a coupon of 3.875 per cent per annum – issued February 2015

Details of the tranches of the bond repaid in the year ended 31 March 2022 were as follows:

• £400 million Senior Notes due 2022 at a coupon of 5.000 per cent per annum – issued January 2014

Details of the tranches of the bond repaid in the year ended 31 March 2021 were as follows:

• £300 million Senior Notes due 2021 at a coupon of 2.750 per cent per annum – issued January 2017

Syndicated loan
In October 2018, a $1 billion syndicate loan was issued with a coupon rate of LIBOR + 1.900 per cent per annum, with $798 million due in January 2025.
$200 million was paid during the year ended 31 March 2023.

UK export finance facility

During the year ended 31 March 2020, the Company entered and drew down in full a £625 million five-year amortising loan facility backed by a £500
million guarantee from UK Export Finance. During the year ended 31 March 2023, the Company repaid £125 million (2022: £125 million, 2021: £125
million) of this loan. During the year ended 31 March 2022, the Company entered and drew down in full an additional £625 million five-year amortising
loan facility. The Company repaid £125 million of this additional facility in the year ended 31 March 2023 (2022: £31 million, 2021: £nil). These loans
include a covenant requiring the Group to maintain a minimum liquidity of £1 billion.

The contractual cash flows of interest-bearing debt are set out below, including estimated interest payments and assuming the debt will be repaid at
the maturity date:

As at 31 March (£ millions) 2023 2022 2021

Due in
1 year or less 1,123 1,494 798
2nd and 3rd years 2,890 2,508 2,134
4th and 5th years 1,661 1,899 2,326
More than 5 years 883 1,800 1,377
Total contractual cash flows 6,557 7,701 6,635

A n n ua l Re p o r t 2022/23 157
50 C A P I TA L A N D R E S E R V E S

As at 31 March (£ millions) 2023 2022 2021

Authorised, called up and fully paid
1,500,642,163 ordinary shares of £1 each 1,501 1,501 1,501
Total ordinary share capital 1,501 1,501 1,501

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the
Company.

The capital redemption reserve of £167 million (2022, 2021: £167 million) was created in March 2011 on the cancellation of share capital.

51 DIVIDENDS

During the year ended 31 March 2023 no ordinary share dividends were proposed or paid (2022, 2021: £nil).

52 COMMITMENTS AND CONTINGENCIES

The Company had no commitments or contingencies at 31 March 2023, 2022 or 2021.

53 C A P I TA L M A N A G E M E N T

As at 31 March (£ millions) 2023 2022 2021

Long-term debt 4,697 5,280 4,959

Short-term debt 820 1,180 524
Total debt 5,517 6,460 5,483
Equity attributable to shareholder 2,066 2,086 2,090
Total capital 7,583 8,546 7,573

54 FINANCIAL INSTRUMENTS

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items
that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses
are recognised, in respect of each class of financial asset and financial liability, are disclosed in note 37 to the consolidated financial statements.

(A) Financial assets and liabilities

The following table shows the carrying amounts and fair value of each category of financial assets and liabilities as at 31 March 2023:

Total carrying Total fair

(£ millions) Amortised cost
value value
Other financial assets - current 1,358 1,358 1,348
Other financial assets - non-current 4,686 4,686 4,330
Total financial assets 6,044 6,044 5,678
Other financial liabilities - current 87 87 87
Short-term borrowings 820 820 810
Long-term borrowings 4,697 4,697 4,341
Total financial liabilities 5,604 5,604 5,238

A n n ua l Re p o r t 2022/23 158
The following table shows the carrying amounts and fair value of each category of financial assets and liabilities as at 31 March 2022:

Total fair
(£ millions) Amortised cost Total carrying value
value
Other financial assets - current 1,727 1,727 1,726
Other financial assets - non-current 5,288 5,288 5,189
Total financial assets 7,015 7,015 6,915
Other financial liabilities - current 85 85 85
Short-term borrowings 1,180 1,180 1,179
Long-term borrowings 5,280 5,280 5,181
Total financial liabilities 6,545 6,545 6,445

The following table shows the carrying amounts and fair value of each category of financial assets and liabilities as at 31 March 2021:

Total fair
(£ millions) Amortised cost Total carrying value
value
Other financial assets - current 1,074 1,074 1,074
Other financial assets - non-current 4,964 4,964 4,964
Total financial assets 6,038 6,038 6,038
Other financial liabilities - current 82 82 82
Short-term borrowings 524 524 535
Long-term borrowings 4,959 4,959 5,122
Total financial liabilities 5,565 5,565 5,739

Fair value hierarchy

Financial instruments held at fair value are required to be measured by reference to the following levels:

• Quoted prices in an active market (Level 1): This level of hierarchy includes financial instruments that are measured by reference to quoted prices
(unadjusted) in active markets for identical assets or liabilities;
• Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities measured using inputs other than
quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs
that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on
assumptions that are neither supported by prices from observable current market transactions in the same instrument nor based on available market
data.

There has been no change in the valuation techniques adopted or any transfers between fair value levels in either current or prior years as presented.

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation
technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of all the amounts
that the Company could have realised in a sales transaction as of respective dates. The estimated fair value amounts as of 31 March 2023, 2022 and
2021 have been measured as of the respective dates. As such, the fair values of these financial instruments subsequent to the respective reporting
dates may be different from the amounts reported at each year end.

(B) Financial risk management

The Company is exposed to foreign currency exchange rate, interest rate, liquidity and credit risks. The Company has a risk management framework in
place that monitors all of these risks as discussed below. This framework is approved by the Company’s Board of Directors.

A n n ua l Re p o r t 2022/23 159
Foreign currency exchange rate risk
The fluctuation in foreign currency exchange rates may have a potential impact on the balance sheet, statement of changes in equity and cash flow
statement where any transaction references more than one currency or where assets or liabilities are denominated in a currency other than the functional
currency of the Company.

As at 31 March 2023, 2022 and 2021, there are no designated cash flow hedges.

The Company’s operations are subject to risks arising from fluctuations in exchange rates. The risks primarily relate to fluctuations in US Dollar and Euro
against Sterling as the Company has US Dollar and Euro assets and liabilities and a GBP functional currency.

The following table sets forth information relating to foreign currency exposure as at 31 March 2023:

(£ millions) US Dollar Euro

Financial assets 2,581 2,364
Financial liabilities (2,587) (2,364)
Net exposure liability (6) -

A 10 per cent appreciation/depreciation of the US Dollar or Euro would result in a decrease/increase in the Company’s net profit before tax and net
assets by approximately £1 million and £nil respectively.

The following table sets forth information relating to foreign currency exposure as at 31 March 2022:

(£ millions) US Dollar Euro

Financial assets 2,980 2,282
Financial liabilities (2,974) (2,282)
Net exposure asset 6 -

A 10 per cent appreciation/depreciation of the US Dollar or Euro would result in an increase/decrease in the Company’s net profit before tax and net
assets by approximately £1 million and £nil respectively.

The following table sets forth information relating to foreign currency exposure as at 31 March 2021:

(£ millions) US Dollar Euro

Financial assets 2,480 1,861
Financial liabilities (2,477) (1,861)
Net exposure asset 3 -

A 10 per cent appreciation/depreciation of the US Dollar or Euro would result in an increase/decrease in the Company’s net profit before tax and net
assets by approximately £nil and £nil respectively.

Interest rate risk

Interest rate risk is the risk that changes in market interest rates will lead to changes in interest income and expense for the Company.

The Company is presently funded with long-term fixed interest rate borrowings and long-term variable-rate borrowings. The Company is also subject to
variable interest rates on certain other debt obligations.

As at 31 March 2023, net financial assets of £467 million (2022: £465 million, 2021: £436 million) were subject to a variable interest rate. An increase/
decrease of 100 basis points in interest rates at the balance sheet date would result in an impact of £5 million (2022: £5 million, 2021: £4 million).

The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the
change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year-end balances are not
necessarily representative of the average debt outstanding during the year.

Liquidity rate risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due.

The Company’s policy on liquidity risk is to ensure that sufficient borrowing facilities are available to fund ongoing operations without the need to
carry significant net debt over the medium term. The quantum of committed borrowing facilities available to the Company is reviewed regularly and is
designed to exceed forecast peak gross debt levels.

A n n ua l Re p o r t 2022/23 160
The following are the undiscounted contractual maturities of financial liabilities, including estimated interest payments:

Carrying Contractual 1 year 1 to <2 2 to <5 5 years

As at 31 March 2023 (£ millions)
amount cash flows or less years years and over
Financial liabilities
Long-term borrowings and accrued interest 4,770 5,644 249 1,527 2,983 885
Short-term borrowings and accrued interest 823 845 845 - - -
Other financial liabilities 11 68 28 18 22 -
Total contractual maturities 5,604 6,557 1,122 1,545 3,005 885

Carrying Contractual 1 year 1 to <2 2 to <5 5 years

As at 31 March 2022 (£ millions)
amount cash flows or less years years and over
Financial liabilities
Long-term borrowings and accrued interest 5,347 6,447 246 1,045 3,356 1,800
Short-term borrowings and accrued interest 1,188 1,228 1,228 - - -
Other financial liabilities 9 28 22 6 - -
Total contractual maturities 6,544 7,703 1,496 1,051 3,356 1,800

Carrying Contractual 1 year 1 to <2 2 to <5 5 years

As at 31 March 2021 (£ millions)
amount cash flows or less years years and over
Financial liabilities
Long-term borrowings and accrued interest 4,959 6,054 221 1,263 3,193 1,377
Short-term borrowings and accrued interest 524 557 557 - - -
Other financial liabilities 82 28 22 6 - -
Total contractual maturities 5,565 6,639 800 1,269 3,193 1,377

Credit risk
Financial instruments that are subject to concentrations of credit risk consist of loans to subsidiaries.

The carrying amount of financial assets represents the maximum credit exposure.

Financial assets
None of the other financial assets are past due or impaired. Regarding other financial assets that are neither past due nor impaired, there were no
indications as at 31 March 2023 (2022, 2021: no indications) that defaults in payment obligations will occur. However, as required under IFRS 9, the
Company has assessed other financial assets for expected credit losses.

These financial assets are loan receivables from subsidiaries and the Company notes that there is no history of default on such arrangements. As there
has been no significant increase in credit risk, the Company has assessed these based on a 12-month expected credit loss. The impairment of the loan
receivables due to the requirements under IFRS 9 are set out below:

2023 Net 2022 Net 2021 Net

As at 31 March 2023 2023 2022 2022 2021 2021
carrying carrying carrying
(£ millions) Gross Impairment Gross Impairment Gross Impairment
value value value
Other financial
assets - current 1,365 (7) 1,358 1,734 (7) 1,727 1,077 (3) 1,074
Other financial
assets - non-current 4,720 (34) 4,686 5,314 (26) 5,288 4,992 (28) 4,964
Total 6,085 (41) 6,044 7,048 (33) 7,015 6,069 (31) 6,038

Movement in allowances for expected credit losses of financial assets:

Year ended 31 March (£ millions) 2023 2022 2021

At beginning of year 33 31 24
Charged during year 8 2 7
At end of year 41 33 31

A n n ua l Re p o r t 2022/23 161
55 R E C O N C I L I AT I O N OF MOVEMENTS OF LIABILITIES TO CASH FLOWS ARISING FROM FINANCING
ACTIVITIES

(£ millions) Borrowings Interest accrued Total

Balance at 1 April 2020 5,183 62 5,245

Cash flows
Proceeds from issue of financing 1,034 - 1,034
Repayment of financing (425) - (425)
Arrangement fees paid (11) - (11)
Interest paid - (226) (226)
Non-cash movements
Interest accrued - 246 246
Foreign exchange (309) (3) (312)
Fee amortisation 11 - 11
Balance at 31 March 2021 5,483 79 5,562
Cash flows
Proceeds from issue of financing 1,417 - 1,417
Repayment of financing (558) - (558)
Arrangement fees paid (13) - (13)
Interest paid - (296) (296)
Non-cash movements
Interest accrued - 301 301
Foreign exchange 118 - 118
Fee amortisation 13 - 13
Balance at 31 March 2022 6,460 84 6,544
Cash flows
Repayment of financing (1,235) - (1,235)
Interest paid - (355) (355)
Non-cash movements
Interest accrued - 348 348
Foreign exchange 281 9 290
Fee amortisation 11 - 11
Balance at 31 March 2023 5,517 86 5,603

Included within ‘finance expenses and fees paid’ in the parent company cashflow statement is £31 million (2022: £18 million, 2021: £nil) of cash interest
paid relating to other assets and liabilities not included in the reconciliation above.

A n n ua l Re p o r t 2022/23 162
56 R E L AT E D PA R T Y T R A N S A C T I O N S

Tata Sons Private Limited is a company with significant influence over the Company’s ultimate parent company Tata Motors Limited. The Company’s
related parties therefore include Tata Sons Private Limited, subsidiaries and joint ventures of Tata Sons Private Limited and subsidiaries, associates and
joint ventures of Tata Motors Limited. The Company routinely enters into transactions with these related parties in the ordinary course of business.

The following table summarises related party balances:

With direct and indirect

As at (£ millions) With immediate parent
subsidiaries
31 March 2023
Loans to subsidiaries of the Company 6,044 -
Loans from subsidiaries of the Company 37 -
31 March 2022
Loans to subsidiaries of the Company 7,015 -
Loans from subsidiaries of the Company 43 -
31 March 2021
Loans to subsidiaries of the Company 6,038 -
Loans from subsidiaries of the Company 34 -

Compensation of key management personnel

Year ended 31 March (£ millions) 2023 2022 2021

Short-term benefits 4 5 6
Post-employment benefits - - 1
Other long-term employee benefits - - 1
Compensation for loss of office 2 - -
Total compensation of key management personnel 6 5 8

Apart from the directors, the Company did not have any employees and had no employee costs in the years ended 31 March 2023, 2022 and 2021. All
directors’ costs are fully recharged to Jaguar Land Rover Limited, an indirect subsidiary company.

57 A U D I T O R ’ S R E M U N E R AT I O N

Amounts receivable by the Company’s auditor and its associates in respect of services to the Company and its associates, other than the audit of
the Company’s financial statements, have not been disclosed as the information is required instead to be disclosed on a consolidated basis in the
consolidated financial statements.

58 U LT I M A T E P A R E N T C O M P A N Y A N D P A R E N T C O M P A N Y O F T H E LARGER GROUP

The immediate parent undertaking is TML Holdings Pte. Ltd. (Singapore), which is the parent for the smallest group to consolidate these financial
statements. The ultimate parent undertaking and controlling party is Tata Motors Limited, India, which is the parent of the largest group to consolidate
these financial statements.

Copies of the TML Holdings Pte. Ltd. (Singapore) consolidated financial statements can be obtained from the Company Secretary, TML Holdings Pte. Ltd.
9 Battery Road #15-01 MYP Centre, Singapore 049910.

Copies of the Tata Motors Limited, India consolidated financial statements can be obtained from the Company Secretary, Tata Motors Limited, Bombay
House, 24, Homi Mody Street, Mumbai-400001, India.

59 SUBSEQUENT EVENTS

There have been no material subsequent events between the balance sheet date and the date of signing this report.

A n n ua l Re p o r t 2022/23 163
APPENDIX
1
APPENDIX 1:
G L O B A L R E P O R T I N G I N I T I AT I V E ( G R I ) C O N T E N T I N D E X

The Company has reported the information cited in this GRI content index for the period 1st April 2022 to 31st March
Statement of use
2023 with reference to the GRI Standards

GRI 1 used GRI 1: Foundation 2021

The organisation and its reporting practices

Disclosure Detail Location

2-1 Organisational details • Legal name https://www.jaguarlandrover.com/overview

• Nature of ownership and legal form https://www.jaguarlandrover.com/global-footprint
• Location of headquarters
• Countries of operation

2-2 Entities included in the • Entities included in the organisation’s sustainability Independent Auditor’s Report > pages 69-78
organisation’s sustainability reporting reporting SBTi Reporting Methodology Statement > corporate
website

2-3 Reporting period, frequency and • Reporting period for, and the frequency of, Sustainability reporting: 1st April 2022 - 31st March
contact point sustainability reporting 2023, annually
• Reporting period for financial reporting Financial reporting: 1st April 2022 - 31st March
• Publication date of the report 2023, annually
• Contact point for questions about this report Publication date: June 2023
For questions about this report:
https://www.jaguarlandrover.com/investor-relations

2-4 Restatements of information • Restatements of information made from previous Performance Data Tables FY2022/23 > pages 42-43
reporting periods

2-5 External assurance • Policy and practice for seeking external assurance Independent Auditor’s Report > pages 69-78
• Link / reference to external assurance Grant Thornton SBT limited assurance opinion >
corporate website
SBTi Reporting Methodology Statement > corporate
website

Activities and workers

Disclosure Detail Location

2-6 Activities, value chain and other • Sectors Value chain:

business relationships • Value chain Our business model > page 11
• Other relevant business relationships Activities, products and services:
• Significant changes compared to the previous https://www.jaguarlandrover.com/global-footprint
reporting period https://www.jaguarlandrover.com/innovation
https://www.jaguarlandrover.com/our-brands
Downstream entities:
https://www.jaguarlandrover.com/global-footprint

2-7 Employees • Total number of employees, breakdown by gender Financial statements - Employee numbers and costs
and region > pages 96-97
• Total number of permanent, temporary, non-
guaranteed hours employees, full-time employees,
and part-time employees, breakdown by gender and
region
• Methodologies and assumptions used to compile
the data
• Contextual information required to understand the
data
• Significant fluctuations in number of employees

2-8 Workers who are not employees • Total number of workers who are not employees Financial statements - Employee numbers and costs
• Methodologies and assumptions used to compile > pages 96-97
the data
• Significant fluctuations in number of workers who
are not employees

A n n ua l Re p o r t 2022/23 165
Governance

Disclosure Detail Location

2-9 Governance structure and • Governance structure including committees of the Governance - Leadership > page 53-57
composition highest governance body Sustainability Governance > page 26
• Committees responsible for decision-making https://www.jaguarlandrover.com/leadership
on and overseeing the management of the
organisation’s impact on the economy, environment
and people
• Composition of the highest governance body

2-10 Nomination and selection of the • Nomination and selection process for the highest Governance - Accountability > pages 60-61
highest governance body governance body and its committees
• Criteria used for nominating and selecting highest
governance body members

2-11 Chair of the highest governance • Chair of the highest governance body Governance - Leadership > pages 53-54
body https://www.jaguarlandrover.com/leadership

2-12 Role of the highest governance • Role of the highest governance body in overseeing Sustainability Governance > page 26
body in overseeing the management the management of impacts
of impacts

2-13 Delegation of responsibility for • Delegation of responsibility for managing impacts Governance - Leadership > pages 53-57
managing impacts • Process and frequency for reporting Governance - Effectiveness > pages 58-59
Sustainability Governance > page 26

2-14 Role of the highest governance • Role of the highest governance body in Sustainability Governance > page 26
body in sustainability reporting sustainability reporting

2-15 Conflicts of interest • Process for prevention and mitigation Corporate Policy: CP1-023 Conflicts of Interest
• Disclosure to stakeholders Available to all employees, however it is not
available publicly

2-16 Communication of critical • Communication of critical concerns to the highest Governance - Leadership > pages 55-57
concerns governance body Total number and nature of critical concerns are
• Total number and nature of critical concerns deemed confidential
communicated

2-17 Collective knowledge of the • Measures taken to advance the collective Introduction to Sustainability > page 24
highest governance body knowledge, skills, and experience of the highest Sustainability Governance > page 26
governance body on sustainable development

2-18 Evaluation of the performance • Process for evaluating performance Governance - Effectiveness > pages 58-59
of the highest governance body • Independence and frequency of evaluations Governance - Accountability > pages 60-61
• Actions taken in response to evaluations

2-19 Remuneration policies • Remuneration policies for members of the highest Governance - Accountability > pages 60-61
governance body and senior executives
• How the policies relate to objectives and
performance in relation to management of impacts
on the economy, environment and people

2-20 Process to determine • Process for designing its remuneration policies and Governance - Accountability > pages 60-61
remuneration for determining remuneration
• Results of votes of stakeholders

2-21 Annual total compensation • Ratio of the annual total compensation for the This information is deemed to be confidential
ratio organisation’s highest-paid individual to the median
annual total compensation for all employees
• Ratio of the percentage increase in annual total
compensation for the organisation’s highest-paid
individual to the median percentage increase in
annual total compensation for all employees
• Contextual information necessary to understand
the data

A n n ua l Re p o r t 2022/23 166
Strategy, policies and practices

Disclosure Detail Location

2-22 Statement on sustainable • Statement from the highest governance body or Chairman’s Statement > page 4
development strategy most senior executive of the organisation about Chief Executive Officer’s Statement > page 5
the relevance of sustainable development to the Introduction to Sustainability > pages 24-25
organisation and its strategy for contributing to
sustainable development

2-23 Policy commitments • Policy commitments for responsible business Code of Conduct and supporting policies:
conduct https://www.jaguarlandrover.com/code-conduct
• Specific policy commitment to respect human
rights
• Links to the policy commitments
• Policy approval level
• Extent to which the policy commitments apply
to the organisation’s activities and business
relationships
• Communication of policies

2-24 Embedding policy commitments • How each policy commitment for responsible Code of Conduct and supporting policies:
business conduct is embedded throughout activities https://www.jaguarlandrover.com/code-conduct
and business relationships Introduction to Responsible Business > page 32
Compliance and Ethics > page 39

2-25 Processes to remediate • Commitments to provide for or cooperate in the Our Approach to Risk > page 45
negative impacts remediation of negative impacts Principal Risks > pages 46-49
• Approach to identify and address grievances Governance - Leadership > pages 55-57
• Other processes by which the organisation Compliance and Ethics > page 39
provides for or cooperates in the remediation of Code of Conduct
negative impacts https://www.jaguarlandrover.com/code-conduct
• Stakeholder involvement
• Tracking and reporting

2-26 Mechanisms for seeking advice • Mechanisms for individuals to seek advice and raise Compliance and Ethics > page 39
and raising concerns concerns about the organisation’s business conduct Code of Conduct (p.21 ‘Raising Concerns’)
https://www.jaguarlandrover.com/code-conduct

2-27 Compliance with laws and • Total number of significant instances of non- This information is deemed to be confidential
regulations compliance with laws and regulations
• Total number and the monetary value of fines
for instances of noncompliance with laws and
regulations
• Significant instances of non-compliance
• How significant instances of non-compliance are
determined

2-28 Membership associations • Industry associations, other membership Directors’ Report > pages 65-67
associations, and national or international advocacy https://www.jaguarlandrover.com/partnerships
organisations

Stakeholder engagement

Disclosure Detail Location

2-29 Approach to stakeholder • Approach to engaging with stakeholders Introduction to Governance > pages 50-51
engagement

2-30 Collective bargaining • Percentage of total employees covered by Introduction to Governance > pages 50-51
agreements collective bargaining agreements
• Determination of working conditions and terms
of employment for employees not covered by
collective bargaining agreements

A n n ua l Re p o r t 2022/23 167