Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — FY2012 Earnings Presentation
20 slides from Rolls-Royce's earnings presentation, February 2013
Slide 1: 2012 Full Year Results
2012 Full Year Results John Rishton — Chief Executive Trusted to deliver excellence Rolls-Royce cons 1
Slide 2: 2012 performance
2012 performance Order book up 4% Revenue up 8% Profit up 24% Shareholder payment up 11% Trusted to deliver excellence Rolls-Royce 5
Slide 3: Consistent long-term delivery
Consistent long-term delivery Revenue (£bn) x 2 Order book (£bn) x 3 2002 2012 2002 2012 Profit (£m) x5 eli 2002 2012 Trusted to deliver excellence Rolls-Royce ;
Slide 4: Consistent strategy
Consistent strategy e Place the customer at the heart of the organization Customer e Understand and shape their requirements e Focus on responsiveness e Connect innovation to customers Innovation e Help our customers do more with less e Develop technology, capability and infrastructure e Grow our ma
Slide 5: 2012 priorities
2012 priorities Deliver on the promises we have made: Customer Decide where to grow and where not to: Concentration Improve financial performance: Cash & Cost Trusted to deliver excellence Rolls-Royce 5
Slide 6: 2012 priorities
2012 priorities Deliver on the promises we have made: Customer Decide where to grow and where not to: Concentration Improve financial performance: Cash & Cost Trusted to deliver excellence Rolls-Royce 5
Slide 7: 2013 priorities
2013 priorities Deliver on the promises we have made Decide where to grow and where not to Improve financial performance Trusted to deliver excellence Rolls-Royce ;
Slide 8: 2012 Full Year Results
2012 Full Year Results Mark Morris — Chief Financial Officer Trusted to deliver excellence Rolls-Royce 4
Slide 9: Group highlights
Group highlights mine ania art | chase Order Book* 60,146 57,630 4% Revenue** 12,209 11,277 8% Profit before tax** 1,429 1,157 24% Return on Sales** 12.2% 10.7% 1.5pp Cash flow** 137 210 Net cash 1,317 223 Payment to shareholders (p/share) 19.5p 17.5p 11% * 2011 restated to exclude IAE order book of
Slide 10: Group profit growth
Group profit* growth 1500 1450 296 = (126) 1429 1400 1350 — = 1300 — £m 1260 1250 — 1200 — 1157 = 1150 1127 1100 1050 — 1000 r FY 2011 " Tognum FY 2011 Trading "Net R&D Entry Fees 2012 Core | Tognum = FY 2012 UPBT Core UPBT UPBT UPBT * profit = undertying profit before tax (UPBT) Trusted to deliver
Slide 11: Group cash flow
Group cash flow 2,500 2,000 487 (175) | a) 1,500 1429 £m (142) 957 1094 1,000 Mm 814 = (459) 500 L (318) a. ) 2012 Base D&A NWC Capex & Other Trading Pension Shareholder Base Cash Acq! Gross Cash UPBT Intangibles CashFlow Tax Payment —— Flow Disp / Flow Other FX Trusted to deliver excellence Rolls-R
Slide 12: Civil Aerospace
Civil Aerospace femiions Latta | ott | chara Order Book* 49,608 47,370 5% Engine deliveries* 668 544 23% Revenue** 6,437 5,572 16% OE Revenue** 2,934 2,232 31% Services revenue** 3,503 3,340 5% Profit before financing** 727 499 46% Return on Sales** 11.3% 9.0% 2.3pp * Restatedto exclude V2500 figure
Slide 13: Defence Aerospace
Defence Aerospace femiions Latta | ott | chara Order Book 5,157 6,035 -15% Engine deliveries 864 814 6% Revenue* 2,417 2,235 8% OE Revenue* 1,231 1,102 12% Services revenue* 1,186 1,133 5% Profit before financing* 404 376 7% Return on Sales* 16.7% 16.8% -0.1pp * Underlying figures Trusted to deliver
Slide 14: Marine
Marine rine aia ait | chron Order Book 3,954 2,737 44% Revenue* 2,249 2,271 -1% OE Revenue* 1,288 1,322 -3% Services revenue* 961 949 1% Profit before financing* 294 287 2% Return on Sales* 13.1% 12.6% 0.5pp * Undertying figures ** Restated due to transfer of Bergen to Engine Holding on 02-Jan-12 Tr
Slide 15: Energy
Energy a Order Book 1,290 1,420 -9% Revenue* 962 1,083 -11% OE Revenue* 344 527 -35% Services revenue* 618 556 11% Profit before financing* 21 16 31% Return on Sales* 2.2% 1.5% 0.7pp * Undertying figures ** Restated due to transfer of Bergen to Engine Holding on 02-Jan-12 Trusted to deliver excellen
Slide 16: Group financial strength
Group financial strength Credit rating + Moody’s A3: stable outlook + S&P A: stable outlook Strong liquidity + — Total liquidity £3.5bn «Access to global debt markets Debt maturities + Spread to 2019 + No material refinancing 2013/14 Underpins long-term commitments Trusted to deliver excellence Roll
Slide 17: 2013 Group underlying guidance
2013 Group underlying guidance Revenue Modest growth Profit Good growth Cashflow Around breakeven Segments: Civil Modest growth in revenue, strong growth in profit Defence Modest growth in revenue, modest reduction in profit Marine Modest growth in revenue and profit Energy Some improvement in reven
Slide 18: Additional guidance
Additional guidance Income statement: Foreign exchange R&D P&L Underlying tax rate Cash: Capital expenditure R&D expenditure Trusted to deliver excellence Neutral Modest decrease 22%-23% c. £100m higher Modest increase Rolls-Royce 18
Slide 19: Tognum update
Tognum update Status + JV owns > 99% * Domination Agreement approved * Tognum announces 2012 results today Next steps =. Final legal process * Delisting * Full consolidation from January 1st 2013 Reporting * — Engine Holding to continue as single segment Trusted to deliver excellence Rolls-Royce 19
Slide 20: Q&A
Q&A John Rishton Chief Executive Mark Morris Chief Financial Officer James Guyette President, Rolls-Royce North America Inc. Colin Smith Director, Engineering & Technology Trusted to deliver excellence Rolls-Royce oo 20