Rolls-Royce Holdings plc · LSE:RR.
Rolls-Royce — FY2013 Earnings Presentation
20 slides from Rolls-Royce's earnings presentation, February 2014
Slide 1: Rolls-Royce Holdings plc 2013 Full year results
Rolls-Royce Holdings plc 2013 Full year results John Rishton, Chief Executive Trusted to deliver excellence
Slide 2: 2013 Highlights
2013 Highlights ● Order book up 19% ● Revenue up 27% ● Profit up 23% ● Payments to shareholders up 13% Trusted to deliver excellence
Slide 3: The Four C's
The Four C’s ● Customer ● Concentration ● Cost ● Cash Trusted to deliver excellence
Slide 4: Consistent long-term delivery
Consistent long-term delivery Order book (£bn) Revenue (£bn) 71.6 15.5 18.7 5.6 2003 2013 2003 2013 Profit (£m) 1,759 285 2003 2013 Trusted to deliver excellence
Slide 5: 2014
2014 Trusted to deliver excellence
Slide 6: Summary
Summary ● 2013 – a good year ● The 4 Cs – more to do on cost ● 2014 – a pause before growth resumes Trusted to deliver excellence
Slide 7: Mark Morris, Chief Financial Officer
Rolls-Royce Holdings plc 2013 Full year results Mark Morris, Chief Financial Officer Trusted to deliver excellence
Slide 8: Group highlights
Group highlights Including Tognum Excluding Tognum 2012 2013 +/- 2012 2013 +/- Order book (£bn) 60.1 71.6 19% 60.1 70.0 16% Revenue (£m) 12,209 15,505 27% 12,209 12,919 6% Profit before tax (£m) 1,434 1,759 23% 1,357 1,502 11% Return on sales 12.2% 11.8% -0.4pp 11.6% 12.1% 0.5pp Base cash (£m) 137 3
Slide 9: Group profit growth
Group profit growth 1,800 1,759 257 1,700 1,600 56 1,502 1,500 26 £m 112 (37) 1,400 1,357 (12) 1,300 1,200 2012 Trading IAE Entry Net R&D Restruct. 2013 Tognum 2013 Core Fees Core UPBT UPBT UPBT Trusted to deliver excellence
Slide 10: Group cash flow
Group cash flow 2,500 533 19 2,000 1,502 1,500 £m 1,000 (1,043) (73) 669 263 622 (269) 500 312 47 (357) 0 Core D&A NWC Capex Other Pension Free Shares Base Tognum Acq / Change UPBT & / Tax cash cash Disp/ in net Int'bles flow flow FX funds Trusted to deliver excellence
Slide 11: Civil Aerospace
Civil Aerospace 2012 2013 +/- Order book (£bn) 49.6 60.3 22% Revenue (£m) 6,437 6,655 3% OE Revenue (£m) 2,934 3,035 3% Services Revenue (£m) 3,503 3,620 3% Profit before financing (£m) 743 844 14% Return on sales 11.5% 12.7% 1.2pp Note: Underlying figures Trusted to deliver excellence
Slide 12: Defence Aerospace
Defence Aerospace 2012 2013 +/- Order book (£bn) 5.2 4.1 -21% Revenue (£m) 2,417 2,591 7% OE Revenue (£m) 1,231 1,385 13% Services Revenue (£m) 1,186 1,206 2% Profit before financing (£m) 395 438 11% Return on sales 16.3% 16.9% 0.6pp Note: Underlying figures Trusted to deliver excellence
Slide 13: Marine
Marine 2012 2013 +/- Order book (£bn) 4.0 4.0 1% Revenue (£m) 2,249 2,527 12% OE Revenue (£m) 1,288 1,438 12% Services Revenue (£m) 961 1,089 13% Profit before financing (£m) 294 281 -4% Return on sales 13.1% 11.1% -2.0pp Note: Underlying figures Trusted to deliver excellence
Slide 14: Energy
Energy 2012 2013 +/- Order book (£bn) 1.3 1.5 14% Revenue (£m) 962 1,048 9% OE Revenue (£m) 344 415 21% Services Revenue (£m) 618 633 2% Profit before financing (£m) 19 26 37% Return on sales 2.0% 2.5% 0.5pp Note: Underlying figures Trusted to deliver excellence
Slide 15: Power Systems
Power Systems 2012 2013 +/- Order book (£bn) 1.8 1.9 6% Revenue (£m) 2,846 2,831 -1% OE Revenue (£m) 1,938 2,004 3% Services Revenue (£m) 908 827 -9% Profit before financing (£m) 293 294 0.3% Return on sales 10.3% 10.4% 0.1pp Note: Underlying figures Shown as if Tognum and Bergen had been fully cons
Slide 16: Group financial strength
Group financial strength Credit Rating ● S&P: A, stable outlook ● Moody’s: A3, stable outlook ● Maintain investment grade rating Strong Liquidity ● Total liquidity £5.6bn Debt Maturities ● Spread to 2026 ● No material refinancing 2014 Trusted to deliver excellence
Slide 17: 2014 Guidance
2014 Guidance Revenue Profit Cash Aerospace Civil Modest Growth Good Growth Defence 15-20% Reduction 15-20% Reduction Marine & Industrial Power Systems Marine Modest Reduction Modest Growth Energy & Nuclear Good Growth Good Growth Power Systems Modest Growth Good Growth Group Flat Flat Similar Trust
Slide 18: 2014 Additional Guidance
2014 Additional Guidance Additional Guidance Phasing profit & cash H2 biased CapEx flat (around £700m) R&D modest spend increase; higher P&L charge Tax underlying rate around 24% Trusted to deliver excellence
Slide 19: Final Thoughts
Final Thoughts ● Order book underpins future growth ● Good progress on customer and inventory before the ramp-up ● More to do on cost & cash ● Payments to shareholders up 13% Trusted to deliver excellence
Slide 20: Q&A
Q&A John Rishton Chief Executive Mark Morris Chief Financial Officer James Guyette President, Rolls-Royce North America Inc. Colin Smith Director, Engineering & Technology Trusted to deliver excellence