Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — H1 2009 Earnings Presentation
18 slides from Rolls-Royce's earnings presentation, 2009
Slide 1: Appendices: Consistent power systems strategy
Appendices Consistent power systems strategy 1
Slide 2: Broadening our portfolio
Broadening our portfolio Underpinning long-term growth Service contracts supporting growth Group services revenues 2
Slide 3: Balanced business portfolio; a resilient order book
Balanced business portfolio – 2009 H1 £4.9bn A resilient order book Order book* ~ £57.5bn *Order book stated on a constant currency basis. 3
Slide 4: Strong programme positions: Managing challenges
Strong programme positions: providing long-term visibility z Major new programmes and increasing installed base underpin long-term growth z 61% of the £57.5bn order book relates to 2012 and later Managing challenges 400% Commodity Financial SARS Inflation Crisis 9/11 9/11 300% Weakening Programme Gu
Slide 5: Research & Development
Research & Development 2009 H1 2008 H1 £m £m Gross spend (440) (399) Funded externally 194 177 Net R&D spend* (246) (222) *Net R&D spend % underlying revenues 5.0% 5.3% Capitalised 61 57 Amortised (15) (12) R&D Charged to Income Statement (200) (177) Financial Strength 5
Slide 6: Group cash flow; a strong balance sheet
Group cash flow 2009 H1 2008 H1 £m £m Gross cash generation 480 559 Capital/Intangible expenditure (276) (227) Inventory (123) (250) Other working capital (164) (84) Shareholder Payments (101) (58) Taxation (50) (32) Cash outflow (234) (92) Period end FX revaluation (194) 48 Cash outflow – period (4
Slide 7: Debt maturities being extended; pension risks reduced
Debt maturities being extended - Gross facilities of £1.7bn outstanding z Gross cash at 30 June in excess of £2.7bn z Gross debt at 30 June £1.7bn z Additional undrawn facilities - £450m – RCF, EIB z £500m 10yr Sterling bond issued H1 2009 effectively refinancing the 2011 Eurobond early Pension risk
Slide 8: Customer finance – delivered and new business
Customer finance – delivered (Contingent liabilities) z Not a core activity z Gross and net relatively stable since 2002 z At 30 June 2009: – Gross $1,153m, Net $237m, Stressed $366m z Credit Backstops – Gross $511m, Net $144m, Stressed $167m - 15 Customers and 151 Aircraft z AVG’s – Gross $642m, Ne
Slide 9: Civil Aerospace portfolio
Civil Aerospace portfolio Civil – Well-balanced portfolio 2009 H1 Revenues ~ £2.3bn • Market leader – Large Corporate and • Growing despite delayed major new Widebody programmes • Large and increasing installed thrust • Increasing penetration of TotalCare and • Young, fuel efficient fleet CorporateC
Slide 10: Civil engine deliveries
Civil engine deliveries An increasing fleet: Installed Thrust – 357 million lbs (Jun 09) RB211/Trent V2500 (@ 50%) C&RA 10
Slide 11: Market position underpins growth
Market position underpins growth Installed Engine Fleet by Thrust* *Installed thrust scenarios for 2013 and 2018 reflect currently expected programme deliveries, market share and net aircraft retirements A strategy delivering success 11
Slide 12: Increase in parked aircraft; Why do we offer TotalCare?
Increase in parked aircraft Dec 2007 to June 2009 Aircraft: Announced Net Parked* Total 1,350 662 Rolls-Royce 270 148 Thrust: Announced Net Parked (Millions lbs) Total 83 45 Rolls-Royce 14.9 7.5 *“Net parked” represents aircraft parked in the last 18 months less aircraft previously parked now return
Slide 13: Income Statement vs Cash flow; TotalCare risk management
Income Statement Vs Cash flow z Margins booked progressively over time reflecting latest view of contract outturn z Cash flow reflects: z Progress through the contract z Lumpy overhaul spend Contract Profits TotalCare – Risk management z Major assumptions z Utilisation z Material and labour cost ass
Slide 14: TotalCare – Net debtor
TotalCare – Net debtor z Balance sheet at any point reflects mismatch between cash revenues, cash costs and margins booked z Lumpy overhaul spend increases debtor as incremental costs not recovered from customer but charged through hourly rate Defence Aerospace Portfolio Innovative military propulsi
Slide 15: Defence Aerospace Portfolio
Defence Aerospace Portfolio Defence – A broad portfolio 2009 H1 Revenues ~ £1.0bn • Well positioned on global programmes • Broadly based portfolio • Combat, Transport, Helicopters, UAV’s, • >18,000 engines in service Trainers 15
Slide 16: Defence engine deliveries; Marine portfolio
Defence engine deliveries Marine portfolio 16
Slide 17: Expanding Marine capabilities
Expanding Marine capabilities “Far Samson” 2009 Ship Design of the Year “UT790 Clean Design” New generation offshore vessel design Marine – Continuing strong growth 2009 H1 Revenues ~ £1.2bn • Integrated propulsion solutions • Leading position in Offshore • Product on 30,000 vessels • Services growi
Slide 18: Energy portfolio
Energy portfolio Energy – Investing for future 2009 H1 Revenues ~ £0.4bn • Growing importance of long-term services • Strong, well-positioned Oil & Gas support • Evolving Power generation • Low carbon ~ fuel cells, tidal, nuclear 18