Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — Shareholder Meeting (May 2020)
14 slides from Rolls-Royce's shareholder meeting presentation, May 7, 2020
Slide 1: Presentation following the Annual General Meeting
Presentation following the Annual General Meeting 07 May 2020 1 AGM 2020 © Rolls-Royce
Slide 2: Ian Davis, Chairman of the Board
Ian Davis Chairman of the Board 2 AGM 2020 © Rolls-Royce
Slide 3: Warren East, Chief Executive
Warren East Chief Executive 3 AGM 2020 © Rolls-Royce
Slide 4: 2019 Full Year Results summary
Underlying Underlying core 2019 core revenue operating profit Full Year Results £15.3bn +6%* £810m +25%* summary Reported 25% growth FY underlying operating profit & encouraging level of FCF Core free cash flow Underlying core PBT £911m £587m +17%* 2018: £648m 4 AGM 2020 © Rolls-Royce
Slide 5: 2019 Full Year Results Overview by division
Civil Aerospace Power Systems Defence 2019 Full Year Results Overview Revenue +10% Revenue +4% Revenue +1% Profit +£195m Profit +15% Profit -7% • 64% order market share • Increased revenues • Strong cash performance • Record engine deliveries • Growth in power • Record order intake generation • Good
Slide 6: Continue to expect certification for HPT component H1 2021
• Significant progress, achieved fixes for 8 out of 9 issues • Expect certification for HPT component H1 2021 Trent 1000 • Net exceptional charge of £1.36bn in 2019 financial results - peak year for cash costs In service cash cost expectations unchanged since November update Continue to expect certi
Slide 7: Restructuring efforts gained momentum in 2019 and achieved run-rate savings of £269m
Restructuring efforts gained momentum in 2019 and achieved run-rate savings of £269m Corporate structure Transformation driven by: • Simplifying our organisational structure • Streamlining processes • Investing in digitalisation & automation • Enabling our people Product Development Operations Servi
Slide 8: Decarbonisation
Electrical capabilities Low carbon energy Decarbonisation Pursuing the Rolls-Royce sustainability strategy. Reducing - fuel consumption, Lowering - environmental impacts emissions and noise • Hybrid-propulsion systems for applications, i.e. Significant steps towards trains & yachts ambition to be a
Slide 9: COVID-19 World Outbreak
Worldwide impact and scale of impact COVID-19 World Outbreak • March - started to see flight restrictions being implemented • April - airlines grounding large proportions of their fleets • Anticipating a significant net cash outflow during Q2 • Too early to guide for FY 2020 9 AGM 2020 © Rolls-Royce
Slide 10: Impact on Group: Civil, Power Systems and Defence
Due to the limited visibility of the duration and ultimate Civil Aerospace impact of the pandemic, we areDefence not in a position to give • new guidance EFH compared today. to prior year • Continues to perform robustly − April ~90% reduction Impact on − January to April ~40% reduction • Some operat
Slide 11: Protecting our people and helping our communities
• Proactive measures to help keep our people safe and Protecting our minimise operational people and disruption helping our • Supporting our communities: communities • VentilatorChallengeUK consortium Our top priority: safeguard the lives and • 3D printing to manufacture livelihoods of our personal
Slide 12: Self-help measures and liquidity
In this unprecedented period of uncertainty we have rapidly adapted our business to safeguard its future for Self-help all of our stakeholders measures and liquidity Took decision to draw Number of specific and The Civil Aerospace fully on £2.5bn revolving mitigation activities to market may take cr
Slide 13: On the other side of COVID-19
On the other side COVID-19 • Societal good of flying: key driver of global recovery • Diversity and synergies of our portfolio: seizing long-term potential of our markets • Strength of our strategy: lower carbon, more sustainable power 13 AGM 2020 © Rolls-Royce
Slide 14: Questions
Questions 1 AGM 2020 © Rolls-Royce 4
Rolls-Royce Holdings — Shareholder Meeting (May 2020) on 6ix