Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — FY2010 Earnings Presentation
35 slides from Rolls-Royce's earnings presentation, February 2011
Slide 1: Rolls-Royce Group Plc Full-Year Results 2010
Rolls-Royce Group Plc Full-Year Results 2010
Slide 2: Full-Year Results 2010
Full-Year Results 2010 John Rose Andrew Shilston Mike Terrett ikl Rolls-Royce
Slide 3: Full-Year Results 2010 - John Rose
Full-Year Results 2010 John Rose
Slide 4: Strong performance
Strong performance © Well-positioned for long-term growth e Technology, global access and robust business model e Continued investment in broadening the portfolio, capability & capacity e Better balanced, more resilient e Strong balance sheet — Flexibility and options e Continued focus on improving
Slide 5: Strong portfolio delivering growth
Strong portfolio delivering growth Strong order book (£bn) Strong revenue growth (£Ebn) Growing underlying profits (£m) + 9% CAGR +12% CAGR +6% CAGR FY 07 FY 10 FY 10 FY 07 FY 10 Improving average net cash rm) Growing payments to shareholders (p/share) +610m +7% 7 al ae 13.0 1g FY 07 FY 10 FY 07 FY
Slide 6: Growing order book
Growing order book Expanding portfolio and global access m= Asia / Middle East 60 ‘| m Americas m@ Europe 40 4 £bn 20 i 0 i 2006 2007 2008 2009 2010 Order book doubled since 2006 Rolls-Royce
Slide 7: Financial Review
Full-Year Results 2010 Financial Review Andrew Shilston ikl Rolls-Royce
Slide 8: Components of UPBFCT growth — 2010
Components of UPBFCT growth — 2010 1050 4 2 (43) £m 72 — 950 i 2009FY US$FX _ Entry NetR&D Lower Trading 2010 FY UPBFCT Fees profit on UPBFCT disposal Rolls-Royce
Slide 9: Civil Aerospace
Civil Aerospace Revenues * Profit * Order Book** | | oe ae a a a] @ New programmes — Trent 1000, BR725, Trent XWB ® Total revenues up 10% including services up 15% e Benefiting from Aviall spares transaction ® Trent 900 event — Bulk of costs taken in 2010 @ 2011 — Strong recovery, profits up 25% e S
Slide 10: Defence Aerospace
Defence Aerospace Revenues * Profit * Order Book** ® Good progress on JSF, A400M, RR300 ® Strong portfolio, global access — Offsetting SDSR @ Transport still growing — C130-J and V-22 @ Margins stronger reflecting mix @ 2011 — Modest revenue improvement e Overall — Profits broadly similar to 2010 *
Slide 11: Marine
rder Book** @ LCS, Astute and Type 45 all moving forward @ ODIM adds capability in key target markets @ Continue to grow services revenues @ Margins improved @ 2011 — Stable profits e OE weaker but encouraging order signals e Good services growth *Underlying revenues and profit before financing cost
Slide 12: Energy
Energy Revenues * Profit * Order Book** BRnABE @ Revenue up 20%, Powergen OE particularly strong @ Civil nuclear and low carbon making progress @ Profits stable despite retrofit charges in 2010 @ 2011 — Profits about double 2010 e Further OE growth in Powergen e One-off charges reduced *Underlying r
Slide 13: Underlying financing costs
Underlying financing costs 2010 2009 £m £m Interest (40) (43) Financial RRSPs (13) (25) Other (2) 0 Underlying financing costs (55) (68) Rolls-Royce
Slide 14: Financial strength — Enabling investment
Financial strength — Enabling investment @ Strong liquidity — Average net cash increased to £960m e Strong credit rating - Committed to maintaining A rating e Debt maturities well spread to 2019 e Providing options and flexibility @ Pensions e Limited changes to smaller UK schemes @ Customer and sup
Slide 15: Good cash flow performance in 2010
Good cash flow performance in 2010 Investing in future growth 1200 + (675) 800 + £m 400 (62) 17 “Underlying” Dep'n, Capex, Pensions, 2010 PBT — amortisation intangibles wransiation cash flow payments to shareholders, other Rolls-Royce 15
Slide 16: 2011 Guidance
2011 Guidance @ Revenue e Modest OE and service growth @ Profitability e Civil ~ Strong recovery e Defence ~ Broadly similar to 2010 e Marine ~ Stable profits e Energy ~ About double 2010 e FX~ Around 6-9 cent improvement in achieved rate e Group underlying profit ~ Good progress over 2010 @ Cash fl
Slide 17: Operational Review
Full-Year Results 2010 Operational Review ik Rolls-Royce 17
Slide 18: Strong operational progress
Strong operational progress @ Enabling long-term organic growth e 2005 ~ 2010 — Investing in technology, portfolio, capacity e Transforming global operations e More than £6bn invested over 5 years e Operational footprint increased by 9%, but revenues up 68% @ 2010-A challenging environment e Disrupt
Slide 19: Transforming our portfolio
Transforming our portfolio Strong positions on new applications = ar ia = Trent 1000 — Boeing 787 TP400 — A400M PROMAS Trent XWB - A350 XWB 19
Slide 20: Market leader in the Widebody
Market leader in the Widebody Trent 1000 for the Boeing 787 — EIS in 2011 20
Slide 21: Market leader in Military Transport
Market leader in Military Transport TP400 certification progressing ik] Rolls-Royce 21
Slide 22: Class leading MT30 in service on LCS
Class leading MT30 in service on LCS Long-term naval demand for clean efficient capability Rolls-Royce 22
Slide 23: BR725 for Gulfstream G650
BR725 for Gulfstream G650 Robust demand — Programme on track 23
Slide 24: Trent XWB for the Airbus A350 XWB
Trent XWB for the Airbus A350 XWB The next generation of Widebody technology ™ / F, Ma 24
Slide 25: Globalising operational capability
Globalising operational capability Enabling growth and productivity ik) Rolls-Royce 25
Slide 26: Marine service centre — Brazil
Marine service centre — Brazil Global presence in high demand regions 26
Slide 27: Crosspointe — USA
Crosspointe — USA Transforming capability ik] Rolls-Royce 27
Slide 28: Crosspointe — USA
Crosspointe — USA Commencing manufacturing activities ik] Rolls-Royce 28
Slide 29: Nuclear — Derby, UK
Nuclear — Derby, UK Significant opportunities in adjacent markets = es ik] Rolls-Royce 29
Slide 30: Seletar — Assembly and test
Seletar — Assembly and test Enabling growth and productivity ik] Rolls-Royce 30
Slide 31: Seletar — Wide chord fan blade
Seletar — Wide chord fan blade Enabling growth and productivity 31
Slide 32: Summary
Summary Enabling long-term organic growth @ Transforming the business and our opportunity e Investing in high entry barrier technologies e Long-term visibility e Realising “state of-the-art” capabilities @ Focus on execution e Increasingly effective supply chain e Improving cost, productivity, worki
Slide 33: Full-Year Results 2010 Summary
Full-Year Results 2010 Summary John Rose 33
Slide 34: Well-positioned for growth
Well-positioned for growth @ Economic outlook remains uncertain @ Advantaged by technology, high barriers, access to growth markets @ Business performed well through a challenging period @ Opportunities and flexibility for further portfolio growth @ Transforming operational capabilities, improving p
Slide 35: Full-Year Results 2010
Full-Year Results 2010 ik Rolls-Royce 35