Rolls-royce Holdings Plc · LSE:RR.
Rolls-royce — Corporate Update (October 2014)
10 slides from Rolls-royce's corporate update, Oct 17, 2014
Slide 1: Investor Webex
Investor Webex Friday 17 October 2014 © 2014 Rolls-Royce plc and/or its subsidiaries The information in this document is the property of Rolls-Royce plc and/or its subsidiaries and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied wi
Slide 2: 2014 Trading Update: Civil Aerospace
2 2014 Trading Update Civil Aerospace Previous view Latest view Change Comments • Movement lower within guided Revenue 2-5% increase 2-5% increase range Profit 8-12% increase 15-20% increase • Life cycle cost improvements All figures at 2013 constant FX 2
Slide 3: 2014 Trading Update: Defence Aerospace
3 2014 Trading Update Defence Aerospace Previous view Latest view Change Comments • Movement lower within guided Revenue 15-20% reduction 15-20% reduction range Profit 15-20% reduction 12-15% reduction • Better mix of revenue All figures at 2013 constant FX 3
Slide 4: 2014 Trading Update: Marine
4 2014 Trading Update Marine Previous view Latest view Change Comments Around 10% Around 10% Revenue • No change reduction reduction Profit* 15-25% reduction 15-25% reduction • No change *excluding 2014 one-off charge of £(30)m All figures at 2013 constant FX 4
Slide 5: 2014 Trading Update: Power Systems
5 2014 Trading Update Power Systems Previous view Latest view Change Comments • Movement lower within guided range Revenue +/- 2% +/- 2% • OE impacted by Russian sanctions • Deferral of some medium speed land power diesels • Loss of some higher margin revenue Profit 5-10% increase 5-10% reduction •
Slide 6: 2014 Trading Update: Nuclear & Energy
6 2014 Trading Update Nuclear & Energy Previous view Latest view Change Comments • Weaker market conditions in both Oil & Gas and Power Gen Revenue 5-10% increase 0-5% increase • Customer deferrals ahead of the Energy sale to Siemens • Significant aftermarket deferral Profit 30-40% increase 0-10% in
Slide 7: 2014 Trading Update: Group
7 2014 Trading Update Group Previous view Latest view Change Comments Revenue* Flat -3.5% to -4% • All businesses lower • Higher profits in Civil and Defence Profit Flat Flat • Lower profits in Nuclear & Energy and Power Systems • Lower revenue (c. £200m) Cash Flow c. £780m c. £350m • Lower deposits
Slide 8: 2014 Group Guidance (excluding Energy)
8 2014 Group Guidance (excluding Energy) 2013 Adjusted Latest view Revenue £14,634m -3.0% to -3.5% Profit* £1,687m + 1% Cash Flow £778m Around £350m *excluding 2014 one-off charge of £(30)m All figures at 2013 constant FX 8
Slide 9: 2015 Guidance Update
9 2015 Guidance Update Group Previous view Latest view Change Comments • End markets softening, reducing A return to Revenue* growth +/- 3% visibility • Civil – some risk on Trent 700 sales A return to • Lower revenue Profit growth 0/-3% • Adverse mix *excluding 2014 one-off charge of £(30)m All fig
Slide 10: Medium Term Outlook
Medium Term Outlook Return on Sales of 14.5% to 15.5% Civil TCA peak debtor between £2.7bn and £3.0bn Contractual Aftermarket Rights (CARs, formerly RECs) peak around £500m to £700m Return on Sales of 13.5% to 14.5% Group Cash conversion around 80% 10
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