Rolls-royce Holdings Plc · LSE:RR.
Rolls-royce — Investor Day (November 2023)
7 slides from Rolls-royce's investor day presentation, November 2023
Slide 1: Helen McCabe, Chief Financial Officer
HELEN McCABE Chief Financial Officer
Slide 2: Reflections and Priorities: Unlocking Rolls-Royce's potential
REFLECTIONS AND PRIORITIES Unlocking Rolls-Royce’s potential FOCUS AND DELIVERY INITIAL OBSERVATIONS § Integrated performance management § Engineering excellence § Commercial and cost optimisation § Great people § Working capital discipline § Substantial progress in 2023 § Capital framework establis
Slide 3: Sustainable and Growing Free Cash Flow
SUSTAINABLE AND GROWING FREE CASH FLOW Driven by higher operating profit and stronger balance sheet £2.8bn-£3.1bn mid-term Free Cash Flow (FCF) Improvement in FCF to mid-term driven by +£2.3bn-£2.6bn FCF growth • Operating profit growth (£1.8bn-£2.1bn) with an operating margin of 13-15% £2.8bn-£3.1b
Slide 4: Civil LTSA Balance Growth
CIVIL LTSA BALANCE GROWTH £0.8bn-£1.2bn per annum growth Civil LTSA balance growth1 Growing cash receipts ahead of shop visits costs driven by £0.8bn-£1.2bn p.a. growth • Widebody EFH growth reaching 120-130% of 2019 levels • Business Aviation growth • Higher average EFH rate • Time on wing improvem
Slide 5: Working Capital Optimisation
WORKING CAPITAL OPTIMISATION c.£2bn of sustainable improvements more than offset the impact of headwinds Net Working Capital1 management Disciplined working capital management Receivables & Portfolio INVENTORIES 2022 Inventories Payables Concessions Growth & Other Mid-term • Significant improvement
Slide 6: Capital Framework
CAPITAL FRAMEWORK Driving shareholder value Strong balance sheet and Committed to growing shareholder Disciplined investment investment grade credit profile returns Improved net debt/EBITDA Rigorous capital allocation process Once strong balance sheet Reduced gross debt and investment grade profile
Slide 7: Key Messages
KEY MESSAGES Sustainable earnings Improved Return on Strong balance sheet and cash flow growth Capital and TCC/GM Investment grade profile Growing shareholder Disciplined investments returns © 2023 Rolls-Royce Not Subject to Export Control 26