Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — FY2011 Earnings Presentation
28 slides from Rolls-Royce's earnings presentation, February 2012
Slide 1: 2011 Full Year Results
phe 2011 Full Year Results John Rishton — Chief Executive Trusted to deliver excellence Rolls-Royce cond 1
Slide 2: 2011: A record year
2011: A record year Record order book Record underlying revenue Record underlying profit Trusted to deliver excellence Rolls-Royce 5
Slide 3: Consistent strategy
Consistent strategy Addressing ... four global markets Investing .... in technology, capability and infrastructure Developing ... a competitive portfolio of power systems and services Growing ... market share and installed base Adding ... value for customers through product-related services A strate
Slide 4: A decade of growth
A decade of growth Record revenue (£bn) Record order book (£bn) | f 2002 2011 2002 2011 Record profit (£m) f 2002 2011 Trusted to deliver excellence Rolls-Royce 4
Slide 5: 2011 Key strategic actions
2011 Key strategic actions 1. Tognum + World leader high speed diesels * Growth synergies 2. A350-1000 + Exclusive agreement * Embedded value 3. IAE/Pratt & Whitney * Clear course to future Accelerating future growth Trusted to deliver excellence Rolls-Royce ;
Slide 6: 2011 Business progress
2011 Business progress Civil Aerospace + Trent 1000 + Trent XWB * BR725 Defence Aerospace * TP400 + — LiftSystem + EJ200 Marine * LCS * Submarines + — Environship + Services centres Energy + Brazil * — Civil Nuclear Trusted to deliver excellence ik Rolls-Royce 5
Slide 7: Our focus
Our focus 1. Delivering on the promises made 2. Where to invest for future growth 3. Driving financial performance Trusted to deliver excellence Rolls-Royce ;
Slide 8: My reflections
My reflections Outstanding business Outstanding people Outstanding prospects Trusted to deliver excellence Rolls-Royce 7
Slide 9: 2011 Full Year Results - Finance Director
phe 2011 Full Year Results Mark Morris — Finance Director Trusted to deliver excellence Rolls-Royce P
Slide 10: Group highlights
Group highlights ee eee Order Book (£bn) Revenue* (£m) Profit before tax* (£m) Net cash (£m) Payment to shareholders (p/share) * Underlying figures Trusted to deliver excellence 62.2 11,277 1,157 223 17.5p 59.2 +5% 10,866 +4% 955 +21% 1,533 -1,310 16.0p +9% Rolls-Royce 10
Slide 11: Group profit growth
Group profit* growth 1,200 1,187 41 ; 5a CO 127 BY 1,100 £m 124 1,000 sa soo (Mi 2010 Trading Net Net net Entry 2011 Net 2011 UPBT One-offs FX fees UPBT Tognum UPBT (excl. acq) * profit= underlying profit before tax (UPBT) Trusted to deliver excellence Rolls-Royce Gore) 11 11
Slide 12: Group cash flow
Group cash flow 2,000 1,500 1,157 }410) (775 (110) 1,000 — ‘410 500 1,520 £m 315) (1,520) | 310) 0 -500 -1,000 -1.500 2011. D&A NWC Capex Other Trading Pensions, S/h Base Acqs 2011 , UPBT & Cash Tax & payment Cash &FX Cash intangibles Flow Shares Flow Flow Trusted to deliver excellence Rolls-Royce 2
Slide 13: Civil Aerospace
Civil Aerospace ee ee ee Order Book (£bn) 51.9 48.5 Engine deliveries 962 846 +14% Revenue* (£m) 5,572 4,919 +13% OE Revenue’ (£m) 2,232 1,892 +18% Services revenue* (£m) 3,340 3,027 +10% Profit before financing* (£m) 499 392 +27% * Underlying figures Trusted to deliver excellence Rolls-Royce ‘3
Slide 14: Civil Aerospace
Civil Aerospace ee eee Order Book (£bn) 51.9 48.5 +7% Engine deliveries 962 846 +14% Revenue* (£m) 5,572 4,919 +13% OE Revenue* (£m) 2,232 1,892 Services revenue* (£m) 3,340 3,027 G10%) Profit before financing* (£m) 499 392 +27% * Underlying figures Trusted to deliver excellence Rolls-Royce a4
Slide 15: Civil Aerospace
Civil Aerospace ee eee Order Book (£bn) 51.9 48.5 +7% Engine deliveries 962 846 +14% Revenue* (£m) 5,572 4,919 OE Revenue* (£m) 2,232 1,892 +18% Services revenue* (£m) 3,340 3,027 +10% Profit before financing* (£m) 499 392 * Underlying figures Trusted to deliver excellence Rolls-Royce 12
Slide 16: Defence Aerospace
Defence Aerospace Order Book (£bn) Engine deliveries Revenue* (£m) OE Revenue* (£m) Services revenue* (£m) Profit before financing* (£m) * Underlying figures Trusted to deliver excellence Rolls-Royce ‘6 814 2,235 1,102 1,133 376 710 2,123 1,020 1,103 309 +15% +5% +8% +3% +22% 16
Slide 17: Defence Aerospace
Defence Aerospace Order Book (£bn) Engine deliveries Revenue* (£m) OE Revenue* (£m) Services revenue* (£m) Profit before financing* (£m) * Underlying figures Trusted to deliver excellence 814 2,235 1,102 1,133 376 -7% 710 +15% 2,123 1,020 +8% 1,103 +3% Rolls-Royce 17
Slide 18: Marine
Marine Order Book (£bn) Revenue* (£m) 2,271 2,591 -12% OE Revenue* (£m) 1,322 1,719 -23% Services revenue* (£m) 949 872 +9% Profit before financing* (£m) 323 332 -3% * Underlying figures Trusted to deliver excellence Rolls-Royce 18
Slide 19: Marine
Marine Order Book (£bn) -8% Revenue* (£m) 2,271 2,591 -12% OE Revenue* (£m) 1,322 1,719 ©23%) Services revenue* (£m) 949 872 C9%) Profit before financing* (£m) 323 332 -3% * Underlying figures Trusted to deliver excellence Rolls-Royce ; 19
Slide 20: Marine
Marine Order Book (£bn) -8% Revenue* (£m) 2,271 2,591 OE Revenue* (£m) 1,322 1,719 -23% Services revenue* (£m) 949 872 +9% Profit before financing* (£m) 323 332 * Underlying figures Trusted to deliver excellence Rolls-Royce so 20
Slide 21: Energy
Energy a Order Book (£bn) Engine deliveries 75 95 -21% Revenue* (£m) 1,199 1,233 -3% OE Revenue* (£m) 602 691 -13% Services revenue* (£m) 597 542 +10% Profit before financing* (£m) 24 27 -11% * Underlying figures Trusted to deliver excellence Rolls-Royce Coax} 21 21
Slide 22: Energy
Energy a Order Book (£bn) +28% Engine deliveries 75 95 -21% Revenue* (£m) 1,199 1,233 OE Revenue* (£m) 602 691 -13% Services revenue* (£m) 597 542 +10% Profit before financing* (£m) 24 27 * Underlying figures Trusted to deliver excellence Rolls-Royce al 22
Slide 23: Group financial strength
Group financial strength Credit rating + Moody’s A3: stable outlook * S&P A-: positive outlook Strong liquidity * Total liquidity £2.5bn «Access to global debt markets Debt maturities + Spread to 2019 * No material refinancing 2012/13 Underpins long-term commitments Trusted to deliver excellence Rol
Slide 24: 2012 Group underlying guidance
2012 Group underlying guidance Group Good growth in revenues and profits Cashflow Around breakeven Segments: Civil Good growth in revenues, strong growth in profits Defence Modest growth in revenues and profits Marine Modest increase in revenues, profits broadly flat Energy Growth in revenues and so
Slide 25: Other relevant data
Other relevant data Income statement: Foreign exchange Neutral R&D P&L Significant increase Cash: Capital expenditure Modest increase R&D expenditure Modest increase Trusted to deliver excellence ik Rolls-Royce oa 25
Slide 26: Tognum
Tognum Status Next steps Reporting Trusted to deliver excellence JV owns > 99% £1.5bn invested by Rolls-Royce Tognum announces 2011 results March 8th Final legal process Delisting H1 2012 equity accounting assumption H2 2012 full consolidation assumption Single segment for 2012 Rolls-Royce 26
Slide 27: IAE / Pratt & Whitney
IAE / Pratt & Whitney Status * Announced IAE restructuring + Announced new JV with P&W Next steps + Awaiting regulatory approval for both Reporting Upon Completion: * Order book reduces by c.£4bn + $1.5bn cash receipt + Small reduction in revenue + +c.£140m profit (first 12 months) Trusted to delive
Slide 28: Q&A
Q&A John Rishton Chief Executive Mark Morris Finance Director Mike Terrett Chief Operating Officer James Guyette President, Rolls-Royce North America Inc. Colin Smith Director, Engineering & Technology Trusted to deliver excellence Rolls-Royce oa