Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — Shareholder Meeting (2006)
13 slides from Rolls-Royce's shareholder meeting presentation, Oct 19, 2006
Slide 1: Power systems for land, sea and air
Power systems for land, sea and air Sir John Rose, Chief Executive © 2005 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express w
Slide 2: 2005 Continuing financial progress
2005 Continuing financial progress z Record order book − Firm and announced order book up 15% to £24.4bn z Revenue growth − Group sales £6.6bn – up 11% − Services revenues (inc 100% JVs) - £3.8bn, up 12% z Profit − Underlying Profit before tax £584m – up 49% z Cash − Cash inflow £552m − Net cash bal
Slide 3: Consistent strategy
Consistent strategy z Addressing four global markets z Investing in technology, capability and infrastructure z Developing a competitive product portfolio z Growing market share / installed base z Add value for our customers through the provision of product-related services 3 zOVER THE PAST DECADE W
Slide 4: Balanced business portfolio
Balanced business portfolio Total sales: £6.5bn Aftermarket services: £3.5bn Energy: £0.32bn Civil: £1.39bn Marine: £0.66bn Defence: £0.63bn Original equipment: £3.0bn 4 zTHE CONSEQUENCE OF OUR STRATEGY IS THAT, TODAY, WE HAVE A WELL-BALANCED BUSINESS. zIN 2005 SALES OF PRODUCT-RELATED SERVICES ACCO
Slide 5: Growing order book
Growing order book £bn firm orders 25 14% compound annual growth over last 10 years Asia 20 15 Americas 10 5 Europe 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 5 zTHE DEVELOPMENT OF THE GROUP OVER THE PAST DECADE CAN BE DEMONSTRATED IN A NUMBER OF WAYS. zTHE ORDER BOOK HAS GROWN AT AN ANNUAL
Slide 6: Sales
Sales £bn 7 Compound growth of 6% pa over past 10 years 6.6 6.3 5.9 5.9 6 5.8 5.6 5 4.6 4.5 4.3 4 3.9 3 2 1 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Headline sales 6 zSALES HAVE RECOVERED FROM THE RECENT RECESSION IN CIVIL AEROSPACE, REFLECTING IMPROVING DEMAND AND THE GROWTH OF THE COMPA
Slide 7: Services revenues
Services revenues £bn Compound growth of 11% pa over past 10 years 4 3.8 3.5 3.4 3.0 3 2.8 2.7 2.5 2.4 2.0 2 1.9 1.7 1.5 1.5 1 0.5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Including 100% repair and overhaul joint ventures 7 zTHESE SERVICES REVENUES HAVE GROWN BY 11 PER CENT PER ANNUM COMP
Slide 8: Sales per employee
Sales per employee £000 200.0 Compound growth of 8% pa over past 10 years 185.5 180.0 168.9 160.0 156.4 146.1 147.7 140.0 125.8 120.0 113.3 106.5 101.5 100.0 91.2 80.0 60.0 40.0 20.0 0.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Headline sales 8 zAT THE SAME TIME WE HAVE CONSISTENTLY INCREAS
Slide 9: Rolls-Royce – maintaining momentum
Rolls-Royce – maintaining momentum Order book £bn 24 Sales £bn 6.3 6.6 14 3.5 7 1.4 3 1981 1991 2001 2005 1981 1991 2001 2005 Services sales £bn 3.5 Sales per employee £000 186 2.5 146 1.0 56 0.3 25 9 zIF WE LOOK AT THE PAST 25 YEARS, OUR PROGRESS IS EVEN MORE MARKED. zI THINK IT IS EVIDENT THAT THE
Slide 10: Well positioned for long-term growth
Well positioned for long-term growth z Four growth markets z High barriers to entry z Strong market positions z Consistent services growth z Strengthening balance sheet 10 zEACH OF OUR FOUR SECTORS PROVIDES SIGNIFICANT MARKET OPPORTUNITIES, WITH HIGH BARRIERS TO ENTRY AND WE ARE NOW SECURING THE BEN
Slide 11: Share price performance
Share price performance Index Total shareholder return 400 350 300 Rolls-Royce 250 200 FTSE100 150 100 50 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 11 zIT IS PLEASING TO SEE THE PERFORMANCE OF THE COMPANY REFLECTED IN OUR SHARE PRICE. AS A CONSEQUENCE, OVER THE PAST TEN YEARS, OU
Slide 12: Prospects
Prospects z 2006 guidance − Profit growth − Aftermarket services growth − Positive cash flow 12 zFINALLY, LOOKING TO THE FUTURE, OUR STRONG ORDER BOOK, LONG-TERM SERVICES REVENUE STREAM AND OUR FOCUS ON OPERATIONAL PERFORMANCE UNDERPIN OUR EXPECTATIONS FOR 2006, OF POSITIVE CASH FLOW, BEFORE THE IMP
Slide 13: Cautionary statement on forward-looking statements
Rolls-Royce Group plc (the “Group”) is providing the following cautionary statement. This document contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of the Group. These statements are sometimes, but not always,