Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — H1 2014 Earnings Presentation
17 slides from Rolls-Royce's earnings presentation, 2014
Slide 1: 2014 Half-year results
Rolls-Royce Holdings plc 2014 Half-year results John Rishton, Chief Executive Trusted to deliver excellence
Slide 2: 2014 Half-year results - Chief Financial Officer
Rolls-Royce Holdings plc 2014 Half-year results Mark Morris, Chief Financial Officer Trusted to deliver excellence
Slide 3: Group highlights
Group highlights 3 Actual Constant H1 2013* H1 2014 FX +/- Order book (£bn)** 71,612 70,439 (2%) Revenue (£m) 7,320 6,836 (7%) (4%) Profit before tax (£m) 804 644 (20%) (17%) Return on sales 11.4% 9.9% (1.5pp) Net cash (£m)** 1,939 1,177 -762 Earnings per share (p) 31.88 25.64 (20%) Shareholder paym
Slide 4: Movement in Group revenue
Movement in Group revenue 4 £m 7,400 7,200 (201) (57) 7,000 7,320 (226) 6,800 6,836 6,600 HY 2013 OE Services FX HY2014 Trusted to deliver excellence
Slide 5: Movement in Group profit
Movement in Group profit £m 850 800 (89 ) 750 700 804 (30 ) (32) (36) 48 650 (21 ) 644 600 HY 2013 Volume Marine R&D Other Restruct. FX HY 2014 UPBT charge trading UPBT Trusted to deliver excellence
Slide 6: Group free cash flow
Group free cash flow 6 £m 1,200 1,000 800 281 600 (634) 400 644 200 0 (541) (243) (200) 7 (432) (189) (400) (600) (800) UPBT D&A NWC Capex & Other Trading Pensions & Free cash intangibles cash flow tax flow Trusted to deliver excellence
Slide 7: Business Reviews
7 Business Reviews These figures and commentary reflects the underlying performance and constant FX, unless otherwise noted.
Slide 8: Civil Aerospace
Civil Aerospace 8 £m 3,300 Revenue H1 71 (38) • OE: 16% higher Trents & 10% fall in 3,200 (37) large corporate jet engine deliveries • Services: Down 2%; T&M Revenue down; (RB211 & AE3007); Widebody 3,100 3,201 3,197 LTSA revenue up • Profit: OE mix, lower aftermarket, R&D, 3,000 restructuring. Trad
Slide 9: Defence Aerospace
Defence Aerospace 9 £m 1,300 Revenue H1 1,200 • OE: Revenue down 40% with Typhoon, Hawk Trainer, C-130J and V-22 1,100 1,236 (264) • Services: Revenue up 9% 1,000 54 (43) • Profit: volume, mix with higher 983 aftermarket sales, cost reduction and 900 higher margins on Defence LTSAs. HY 2013 OE Servi
Slide 10: Marine
Marine 10 £m H1 1,100 Revenue 1,000 • OE: revenue down due to lower order (95) intake in 2013, mainly Offshore 900 1,017 (35) • Services: revenue down due to: (69) deferrals, lower vessel utilization and 800 818 lower upgrades 700 HY 2013 OE Services FX HY2014 • Profit: lower volumes & £30m charge.
Slide 11: Nuclear & Energy
Nuclear & Energy 11 £m 800 Revenue H1 750 (25) • OE: higher unit deliveries in Oil & Gas 48 and Submarines (34) 700 • Services: Oil & Gas down 712 • Profit: down, reflecting lower services 650 701 and £10m charge. 600 HY 2013 OE Services FX HY2014 H2 Drivers £m 30 Profit before financing • OE Order
Slide 12: Power Systems
Power Systems 12 £m 1,300 Revenue H1 1,250 41 (23) • OE: sales up 5% driven by Defence and (43) Naval, partially offset by lower land power, Oil & Gas and Mining. 1,200 1,239 • Services: down 6% on lower Marine and 1,150 1,214 Land Power spares. • Profits: down due to mix, restructuring 1,100 HY 201
Slide 13: Group financial strength
Group financial strength 13 Credit Rating • S&P: A, stable outlook • Moody’s: A3, stable outlook • Maintain investment grade rating Strong liquidity • Total liquidity £3.15bn • Spread to 2026 Debt maturities • No material refinancing 2014 Trusted to deliver excellence
Slide 14: 2014 Group guidance
2014 Group guidance 14 Guidance at constant FX Revenue Flat Profit Flat excluding £30m Marine one-off charge Free Cash Flow Similar to 2013 CapEx Around £700m Spend around £800m R&D P&L charge around £780m Tax Underlying rate around 24% Trusted to deliver excellence
Slide 15: 2014 segment guidance
2014 segment guidance 15 At Constant FX Revenue Profit Aerospace Civil Aerospace +2% to +5% +8% to +12% Defence Aerospace -15% to -20% -15% to -20% MIPS Marine c. -10% -15% to -25%* Nuclear & Energy +5% to +10% +30% to +40% Power Systems +/-2% +5% to +10% * Prior to the impact of the £30m one-off ch
Slide 16: Final thoughts
Final thoughts 16 • H1 results as expected • Continued progress on the 4Cs • Confidence in H2, driven by: high OE order cover higher OE & services volumes across every business traditionally H2 weighted services cost reduction • Payment to Shareholders up 5% to 9.0p Trusted to deliver excell
Slide 17: Q&A
Q&A 17 John Rishton Chief Executive Mark Morris Chief Financial Officer Trusted to deliver excellence