Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — Shareholder Meeting (May 2021)
16 slides from Rolls-Royce's shareholder meeting presentation, May 13, 2021
Slide 1: Annual General Meeting
Annual General Meeting 13 May 2021 1 AGM 2021 © Rolls-Royce
Slide 2: Sir Ian Davis, Chairman of the Board
Sir Ian Davis Chairman of the Board 2 AGM 2021 © Rolls-Royce
Slide 3: Nick Luff, Paul Adams
Nick Luff Paul Adams 3 AGM 2021 © Rolls-Royce
Slide 4: Sir Ian Davis, Chairman of the Board
Sir Ian Davis Chairman of the Board 4 AGM 2021 © Rolls-Royce
Slide 5: Warren East, Chief Executive
Warren East Chief Executive 5 AGM 2021 © Rolls-Royce
Slide 6: Safeguarding our people and business
Safeguarding our people and business 2020 was a year of unprecedented disruption we We focused on protecting our people and our business focused on protecting our people and our business Our people Our communities Our investments We also continued to pursue Immediate actions to keep Provided practic
Slide 7: FY 2020 Results summary
FY 2020 Results summary Underlying revenue Free cash flow Gross R&D expenditure Our FY 2020 performance was £11.8bn £(4.2)bn £1.3bn Our financial performance was severely impacted by the COVID-19 pandemic severely impacted by the COVID-19 U/L Operating loss Net debt Liquidity pandemic £(2.0)bn £(1.5
Slide 8: FY 2020 Business performance by business
CIVIL £5,089m (2019: £8,107m) AEROSPACE Underlying revenue £(2,574)m (2019: £44m) FY 2020 Business Underlying operating loss performance POWER £2,745m (2019: £3,184m) Underlying revenue SYSTEMS Underlying revenue by business £178m (2019: £367m) Underlying operating profit Non- ITP core Aero 2% Civil
Slide 9: Despite uncertainty, prevailing views expect a recovery in 2021
Global GDP Growth (%) IMF (2020 estimate, 2021-2025 forecasts) 6% Vaccine roll-outs, testing and Despite uncertainty, ongoing government support 4% prevailing views measures are supportive of a 2% recovery expect a recovery in 0% 2021 However, short-term new COVID variants and national restrictions
Slide 10: Positioning for the recovery and creating a sustainable future
1 2 3 Positioning for the Restore financial Maximise value from Science-led innovation recovery and performance existing capabilities in sustainable power creating a sustainable future Restore performance, maximise value and focus on sustainable power Market recovery and Realise value from Develop l
Slide 11: Restoring performance: fundamental restructuring
Operating Cost Capital prioritisation Restoring performance: fundamental restructuring • Total role reduction of • Subcontractor spend in • Targeting peer range of We were quick to act, more than 9,000 Civil Aero reduced to 3-4% of sales (2020: 5%) implementing a fundamental <1/3 pre-COVID level res
Slide 12: Maximising value from existing capabilities
Civil Aerospace Power Systems Defence Maximising value from existing capabilities Realising the value of our installed base, growing strategic opportunities and focusing on high-growth end • Large WB installed base • Installed base >150,000 • Installed base 16,000 engines markets. engines; expansion
Slide 13: Investing for the future
Pivoting towards Accelerating focus on low carbon Power Systems and Defence Self-funded R&D Engineering (inc. R&D) and capital spend Investing for the 4% 7% future 10% 13% 13% 32% 14% 38% 77% Targeting approx. 20% annual 73% R&D spend on low carbon Defence 64% Low carbon solutions including SMRs, Po
Slide 14: Our low carbon approach
Low carbon technologies • UltraFan: next generation aero engine with ALECSys Lean Burn Combustor Our low carbon • Sustainable fuels to replace jet fuel and diesel approach • Hybrid power solutions UltraFan We are committed to the decarbonisation of our core Enabling net zero markets and will continu
Slide 15: Decisive actions; well positioned for recovery and a lower-carbon future
Decisive and effective actions to address Well positioned for recovery and for a lower- challenging market conditions carbon future >£1bn in-year cash savings achieved in 2020 from one- Fundamental restructuring to deliver permanent cost off mitigating actions efficiencies Strengthened liquidity to
Slide 16: Questions
Questions 13 May 2021 14 AGM 2021 © Rolls-Royce
Rolls-Royce Holdings — Shareholder Meeting (May 2021) on 6ix