Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — FY2009 Earnings Presentation
28 slides from Rolls-Royce's earnings presentation, February 2010
Slide 1: Rolls-Royce Group Plc Preliminary Results 2009
Rolls-Royce Group Plc Preliminary Results 2009 1
Slide 2: Preliminary Results 2009
Preliminary Results 2009 John Rose Andrew Shilston Mike Terrett 2
Slide 3: John Rose
Preliminary Results 2009 John Rose 3
Slide 4: Solid performance in a difficult year
Solid performance in a difficult year A well balanced and increasingly resilient portfolio *Underlying revenue per employee based on three year rolling average. 4
Slide 5: Resilient in an uncertain environment
Resilient in an uncertain environment z Economic fundamentals remain weak, but z Able to access global growing markets z Strong and well balanced portfolio z Improving operational performance z Strong financial position z For 2010 z Revenue, profits and average cash broadly similar to 2009 z Modest
Slide 6: Financial Review
Preliminary Results 2009 Financial Review Andrew Shilston 6
Slide 7: Foreign exchange effects
Foreign exchange effects z USD and Euro – spot and average rates z Periodic revaluations of financial instruments z Overseas businesses benefit from improved translation rates (€ and $) z Headline PBT – £3bn profit in 2009 compared to a £1.9bn loss in 2008 z Underlying performance – UPBFCT benefits
Slide 8: Components of UPBFCT growth
Components of UPBFCT growth FY 2009 8
Slide 9: Civil Aerospace
Civil Aerospace Revenues * Profit * Order Book** 2009 2008 2009 2008 2009 2008 £m £m £m £m £bn £bn 4,481 4,502 493 566 47.0 43.5 z First flight of 3 major new programmes z More than £9bn of orders taken z Stable revenues z Record Trent deliveries, T&M holding back services z Minimal customer finance
Slide 10: Defence Aerospace
Defence Aerospace Revenues * Profit * Order Book** 2009 2008 2009 2008 2009 2008 £m £m £m £m £bn £bn 2,010 1,686 253 223 6.5 5.5 zFirst flights ~ A400M, Lynx Wildcat, STOVL on JSF zStrong orders ~ OE and service contracts zMilitary transport underpinning 19% revenue growth zMargins lower - increased
Slide 11: Marine
Marine Revenues * Profit * Order Book** 2009 2008 2009 2008 2009 2008 £m £m £m £m £bn £bn 2,589 2,204 263 183 3.5 5.2 z Extending the portfolio – new vessels and ODIM z Order book underpinning revenue growth z 6 new service centres expanding network z Improved margins ~ volumes and cost reductions z
Slide 12: Energy
Energy Revenues * Profit * Order Book** 2009 2008 2009 2008 2009 2008 £m £m £m £m £bn £bn 1,028 755 24 (2) 1.3 1.3 z Orders stable z Revenue growth supported by strong O&G z Investing in Tidal, Fuel Cells and Civil Nuclear z Margins benefit from mix, lower R&D z 2010 ~ Increasing volumes and lower R
Slide 13: Underlying financing costs
Underlying financing costs 2009 2008 £m £m Interest (43) (10) Financial RRSPs (25) (26) Other - (3) Underlying financing costs (68) (39) 13
Slide 14: Financial strength
Financial strength z Strong liquidity z Average net cash increased to £635m z Strong credit rating – committed to maintaining A rating z Extended maturities – £500m 10yr Sterling bond z Pensions z Actuarial valuation complete on main scheme z No change to company funding requirements z Customer and
Slide 15: 2009 cashflow
2009 cashflow 1,400 1,230 (1,194) 1,200 315 1,000 (597) 800 oe Underlying Depinand Capex PBT Amortisation and Intangibles M&A Pensions, Payments Deposits FX Cash flow tax and to NWC Translation other — shareholders Rolls-Royce 15
Slide 16: A solid performance
A solid performance *Underlying revenue per employee based on three year rolling average. 16
Slide 17: 2010 Guidance
2010 Guidance z Revenue z Broadly similar to 2009 z Profitability z Civil ~ Profits modestly lower - OE mix and higher R&D more than offset services growth z Marine and Defence ~ Similar to 2009 z Energy ~ Profits about double 2009 z Continuing focus on cost and efficiency z FX ~ Achieved rate impro
Slide 18: Operations review
Preliminary Results 2009 Operations review Mike Terrett 18
Slide 19: Investing in long-term growth
Investing in long-term growth z A growing portfolio z Strong and established market positions z Increased pace of new programmes z World class operations z Globalising the supply chain – US and Singapore z Extending global service capability 19
Slide 20: Increasing pace of new programmes…
Increasing pace of new programmes… z Unprecedented introduction of major new applications z New product introduction is a bigger part of the supply chain z Schedule volatility – volume and mix z Operational disruption well managed z A year of strong progress z Matching near-term investment to demand
Slide 21: Investing in productivity
Investing in productivity Continued progress z Sales per employee grew at 8% compound last decade z Increasing flexibility z Investing in advanced manufacturing processes z Enhanced capability to deliver operational performance z World class suppliers and partners investing with us * Underlying reve
Slide 22: Summary
Summary z New programmes underpin long-term growth z Strong load growth over the next decade z Developing a more flexible supply chain z Investing for productivity and growth z Continued globalisation of supply chain z Managing short-term volatility z Variability of operational load and programme mi
Slide 23: Summary
John Rose Rolls-Royce 23
Slide 24: Consistent strategy
Consistent strategy Delivering growth *Underlying revenue per employee based on three year rolling average. 24
Slide 25: 2009 - A year of firsts
2009 - A year of firsts LCS – USS Freedom Type 45– HMS Daring Legacy 650 Mantis UAV Lynx Wildcat Completed sea trials 1st commissioned 1st flight 1st flight 1st flight 15th June 2009 23rd July 2009 23rd September 2009 21st October 2009 12th November 2009 Astute Gulfstream G650 Airbus A400M Boeing 78
Slide 26: Positioned for long-term growth
Positioned for long-term growth z Broadly based, better balanced z New programmes z Record order book z World class facilities z Good market access z Focus on productivity z Growing installed base Expect to double revenues over the next decade *Underlying revenue per employee based on three year rol
Slide 27: Providing mission critical integrated power systems
Providing mission critical integrated power systems For 2010: z Revenue, profits and average cash broadly similar to 2009 z Modest cash outflow for the year 27
Slide 28: Preliminary Results 2009
Preliminary Results 2009 28