JLRs EBITDA margin at 7.9% was a sharp >400 bps miss, impacted by: (1) higher hedging losses (GBP 454 mn vs. estimate of GBP 300 mn), (2) higher Variable Marketing Expense (VME) and (3) operating deleverage given subdued volumes. Of the 3 factors, we are most worried about high VME despite no major