Tata Motors : Jaguar Racing Limited

Jaguar Racing Limited

ANNUAL REPORT AND FINANCIAL STATEMENTS

Registered number: 09983877

For the year ended 31 March 2024

Jaguar Racing Limited

Annual report and financial statements

For the year ended 31 March 2024

Directors and Advisors

Directors

J.A. Barclay

D.A.R. Berry

A.J. Fennelly

C.J. Thorp

Company Secretary

H.S. Cairns

Registered office

Abbey Road

Whitley

Coventry

CV3 4LF

United Kingdom

Auditor

Forvis Mazars LLP

2 Chamberlain Square

Birmingham

B3 3AX

United Kingdom

	Jaguar Racing Limited
	Annual report and financial statements
	For the year ended 31 March 2024
Contents
Strategic report	1
Directors' report	3
Statement of directors' responsibilities	5
Independent auditor's report to the members of Jaguar Racing Limited	6
Income statement	9
Balance sheet	10
Statement of changes in equity	11
Notes to the financial statements	12

Jaguar Racing Limited

Annual report and financial statements

For the year ended 31 March 2024

Strategic report

The directors present their Strategic report for Jaguar Racing Limited ('the Company' or 'Jaguar Racing') for the year ended 31 March 2024.

Principal activity

The Company's principal activity during the period under review was the participation in the ABB FIA Formula E World Championship ('Championship').

Business review

The strategic goal of the Company is to operate a successful racing team that is capable of being a leading competitor in the ABB FIA Formula E World Championship, helping to write the next chapter of Jaguar's racing history and showcasing the Jaguar brand's world class capabilities in technology, performance and sustainability.

Jaguar Racing Limited's activities in the ABB FIA Formula E World Championship supports Jaguar Land Rover Limited's ('JLR') transition to be a leader in modern luxury Battery Electric Vehicles ('BEVs') and showcases the group's credentials for innovation in the automotive industry. Jaguar's activities in Formula E enable a real-world test bed for electrification technologies providing opportunity for the transfer of technology and learnings from the racetrack to JLR's future electric vehicles.

The financial year under review covered the second half of Season 9 of the Championship (22/23), as well as the first five races of Season 10 (23/24). Season 9 saw the team finish 2nd in the World Championship Team standings, only 12 points behind Jaguar's customer team Envision Racing, with the title being decided in the final race of the season. Jaguar driver Mitch Evans, who placed 3rd overall in Season 9, has been paired with Nick Cassidy from the beginning of Season 10. Though new to the Jaguar team, Nick Cassidy finished 2nd in the Season 9 Drivers' standings, meaning the current Jaguar driver line-up is one of the strongest on the grid.

From a technical standpoint, Season 9 marked the start of the new 'GEN3' era of Formula E with the fastest and most efficient race cars to date. Together with points scored by Jaguar Racing's customer team, Envision Racing, Jaguar's I-TYPE 6 race car scored 596 points in Season 9 - the highest of any manufacturer. The Jaguar I-TYPE 6 also secured four wins for Jaguar Racing, and an additional four wins for Envision Racing.

Jaguar Racing is confident that performance shown in the latter part of the reporting period will continue through the remainder of the season, as it has done over the past two years in an increasingly competitive environment.

At the balance sheet date, having completed five races of Season 10, the team sits 1st in the Teams' Championship standings, with the Drivers sitting 2nd and 6th in the Drivers' Championship standings. The Championship is visiting a number of new locations this season, namely Tokyo, Shanghai and Misano, giving the opportunity not only to grow the sport further, but also to showcase the incredible technology driven through electric racing.

Away from the track, Jaguar Racing has also continued to develop our successful team on both the technical and commercial sides of the business looking ahead to the 'GEN4' era - beginning in 2026 - and beyond.

Future developments

The Company's objective continues to be to develop every aspect of the business to drive future success for the team. In order to achieve this objective, the management team and directors will focus on ensuring the Company continues to retain and attract the best drivers, engineers, commercial and support staff. We will also aim to ensure sufficient funding to the racing programme that will allow us to build a team and car that is capable of sustainable championship success in the future.

Jaguar Racing will also continue to explore further opportunities to establish JLR as a leader in modern luxury Battery Electric Vehicles ('BEVs') and showcase our credentials for innovation in the motorsport and automotive industry.

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Jaguar Racing Limited

Annual report and financial statements

For the year ended 31 March 2024

Strategic report (continued)

Key performance indicators

The key performance indicators (KPIs) used are set out below:

KPI

Races entered (points finishes)

Team Championship points awarded per race

Cost base - total of Racing Operating Costs, Other expenses and Depreciation and Amortisation

2024

15 (14)

20.6

£17,188k

2023 Commentary

Despite the different timings to the start of the 19 (17) season, the proportion of points finishes has

improved from 89% to 93%.

Driven by more consistent results, a positive finish

15.4 to season 9 including a P1 & P2 finish in the first Berlin race, also a strong start to season 10 (with podium finishes in the first 3 races).

Base costs are greater in the 'GEN3' era

£13,782k compared to 'GEN2'. The entirety of this financial year was within 'GEN3' whilst the majority of the

prior period fell in 'GEN2' resulting in an increase in costs year on year.

Principal risks and uncertainties

The fallout of the conflicts in Ukraine and the Middle East continues to have an impact on the economic environment surrounding Formula E and the team, manifesting itself primarily in high inflationary pressures both on wages (cost of living and labour market) and specialist components, although its effects are less severe than in prior periods. This is a risk that has had to be managed in the context of the wider Motorsport programme to ensure appropriate funding is in place and actions are taken to mitigate the impact.

FIA have introduced a new set of financial regulations during the reporting period. These regulations limit the amount of money that can be spent by Formula E Manufacturers (Jaguar Land Rover Limited, the immediate parent company) in their R&D and Manufacturer activities of Formula E race cars allowing up to €25 million by homologation period. They also limit the amount that Formula E Teams can spend (Jaguar Racing Limited) with respect to Racing Operations allowing up to €13 million in the case of team expenditure. Both caps being subject to indexation, we expect them to grow year on year for the foreseeable future making cost control and optimisation of spend within the Cost Cap critical to our success.

For the first time, the Team has undergone an audit from the regulator (the FIA) and their appointed partner to monitor compliance to those regulations, and the results are expected during the course of the FY25 reporting period.

Looking to the future, the continued commercial development of the FIA Formula E championship is critical to Jaguar Racing's success as revenue maximisation, combined with sound cost control, is a key enabler to mitigating potential risk in a manner that also supports the wider Formula E ecosystem.

Approved by the Board of Directors and signed on behalf of the Board by:

H.S. Cairns

Company Secretary

10 June 2024

Abbey Road

Whitley

Coventry

CV3 4LF

United Kingdom

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Jaguar Racing Limited

Annual report and financial statements

For the year ended 31 March 2024

Directors' report

The directors present their Directors' report for Jaguar Racing Limited ('the Company') for the year ended 31 March 2024.

Financial result

The income statement shows a profit after tax for the financial year of £599,000 (2023: £534,000). The Company participated in Season 9 and Season 10 of the ABB FIA Formula E Championships during the financial year, continuing to promote the Jaguar and Land Rover brands. The Company continued to receive compensation for brand promotion services provided for the Jaguar and Land Rover brands on the basis of a cost-plus model.

Dividends

The directors do not propose a dividend for the year ended 31 March 2024 (2023: £nil).

Directors

The directors who held office during the year and subsequently to the date of this report unless otherwise stated are as follows:

J. A. Barclay

D. A. R. Berry

A. J. Fennelly

C. J. Thorp

Directors' indemnities

The Company's intermediate parent, Jaguar Land Rover Automotive plc, maintained director's liability insurance for all directors during the financial year and subsequent to the year end.

Events after the reporting date

There have been no material events since the reporting date.

Going concern

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. The principal activity of the Company is participation in the ABB FIA Formula E Championships as well as the promotion of the Jaguar and Land Rover brands, which are owned by the group headed by Jaguar Land Rover Automotive plc ("the JLR Group") and the Company derives all its income from amounts receivable under a contractual agreement with Jaguar Land Rover Limited, a fellow subsidiary of the JLR Group.

The directors have performed a going concern assessment for the Company for a period of at least 12 months from the date of approval of these financial statements, which includes consideration of the going concern assessment of the JLR Group given the operational interdependencies between the Company and the JLR Group. That going concern assessment indicates that, taking account of reasonably possible downsides, the Company will have sufficient funds, through income received under its continuing contractual agreement Jaguar Land Rover Limited which the directors expect to continue during the going concern assessment period, to meet its liabilities as they fall due during the going concern assessment period.

Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Research and development activities

The Company has not incurred research and development costs during the financial year (2023: £nil).

Research and development activity in relation to the Company's activities is undertaken by the immediate parent Company alongside its broader research and development activity.

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Jaguar Racing Limited

Annual report and financial statements

For the year ended 31 March 2024

Directors' report (continued)

Independent auditor

Forvis Mazars LLP remains in office as auditor of the Company in accordance with section 487(2) of the Companies Act 2006.

In accordance with Section 487 of the Companies Act 2006, the Company has elected to dispense with laying financial statements before the general meeting, holding annual general meetings and the annual appointment of the auditor. With such an election in force, the Company's auditor shall be deemed to be re-appointed for each succeeding financial year in accordance with Section 485 of the Act.

Statement of disclosure of information to auditor

In the case of each of the persons who are directors at the time when the report is approved under Section

418 of the Companies Act, 2006 the following applies:

so far as the directors are aware, there is no relevant audit information of which the Company's auditor is unaware; and

the directors have taken necessary actions in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Approved by the Board of Directors and signed on behalf of the Board by:

H.S. Cairns

Company Secretary

10 June 2024

Abbey Road

Whitley

Coventry

CV3 4LF

United Kingdom

4

Jaguar Racing Limited

Annual report and financial statements

For the year ended 31 March 2024

Statement of Directors' Responsibilities in respect of the Annual Report and the Financial Statements

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework.

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards, comprising FRS 101 have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. The directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

5

Jaguar Racing Limited

Annual report and financial statements

For the year ended 31 March 2024

Independent auditor's report to the members of Jaguar Racing Limited

Opinion

We have audited the financial statements of Jaguar Racing Limited (the 'company') for the year ended 31 March 2024 which comprise the income statement, balance sheet, statement of changes in equity and notes to the financial statements, including material accounting policy information.

The financial reporting framework that has been applied in their preparation is applicable law and UK- adopted international accounting standards, including FRS 101 "Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended; and

have been properly prepared in accordance with UK-adopted international accounting standards; and 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 under those standards are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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Jaguar Racing Limited

Annual report and financial statements

For the year ended 31 March 2024

Independent auditor's report to the members of Jaguar Racing Limited (continued)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the directors' responsibilities statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation and FIA Formula E regulations.

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