Investor Update - Paris 2009 Defence Aerospace Axel - Rolls

Investor Update
- Paris 2009
Defence Aerospace
Axel Arendt
© 2009 Rolls-Royce plc
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Agenda
Overview and market position
Market outlook
Programmes - update
Summary
2
Developing the Defence business
3
A competitive & broad portfolio
z Strong position in all key defence aero market sectors
z Broadest military engine customer base
z Strong positions on global fixed wing and rotary programmes
z Unique STOVL experience
z Leader in rapidly growing transport sector
4
Technology and integration capability
z Military specific skills & technologies
- unique to defence applications
z STOVL heritage & world-class fan
systems technology has put RollsRoyce at the forefront of the world’s
largest military aerospace
programme
z Future defence platforms
increasingly dependant on military
specific power system technology
z Game changing advanced propulsion
technology developments underway
5
Products and systems span decades
F136 & LiftSystem (JSF)
EJ200 (Typhoon)
RB199 (Tornado)
Pegasus (Harrier)
Adour (Hawk, Jaguar)
TP400 (A400M)
AE 2100 (C-130, C-27J)
T56 (C-130, E-2C, P-3)
AE 3007 (Global Hawk)
AE 1107C-Liberty (V-22)
RTM322 (AH-64, EH101, NH90)
T800 (Super Lynx, US-2, T129)
Model 250 (OH-58D)
MTR390 (Tiger)
Gnome (Sea King)
Gem (Lynx)
BR710 (Nimrod)
1980
In Development
1990
In Development
& Production
2000
In Production
2010
2020
In Service (out of production)
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Extensive service capabilities
z Rolls-Royce has an installed base of 18,000 military aero engines and
serves 160 armed forces world-wide
z Growing opportunity for industrial support within the customer base
z Continuing Rolls-Royce innovation in services through the development of
MissionCareTM
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Today – A well balanced portfolio
2008 Revenues ~ £1.7bn
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Agenda
Overview and market position
Market outlook
Programmes - update
Summary
9
Trends in Defence Aerospace
z Near-term Defence budgets are relatively stable and the business
has good visibility going out 3 to 5 years
z Still significant market opportunities including growth potential for
gas turbine powered fixed wing and rotary unmanned systems
z Government funding of Research, Development & Technology is
increasingly being conducted on a shared basis with industry
z Products are being retained in service for longer than planned
providing scope and scale to grow services business
z With demand driven by geo-political tensions, market activity will
remain strong
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$450bn market opportunity over 20 years
z Many customer requirements over
next 10 years already contracted
z Balanced portfolio of customers with
good global spread
W
Ro
z World demand for military aero
engines and related services - $450bn
over next 20 years
Far East
US
$450bn
Middle East
Europe
z Robust long-term service contracts
held directly with governmental
defence departments
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Agenda
Overview and market position
Market outlook
Programmes - update
Summary
12
JSF: F136 and the LiftSystem
z 3,300 – 3,700 global aircraft demand
fueled by US and 8 Partner Nations
z Rolls-Royce has a 40% share of F136
- F136 first ground run 30th January 2009
z Annual funding challenge for alternate
engine is being addressed by FET
z Rolls-Royce provides LiftSystem for
STOVL variant
- Successful first flight June 2008
- Low Rate Initial Production (LRIP)
under contract for long lead items
13
Eurofighter Typhoon: EJ200
z 1,068 engines ordered to date with over
500 engines delivered
z In 2008, engine contract signed with
Saudi Arabia to supply 72 Typhoon
aircraft
z Tranche 3 contract for new aircraft with
UK, Spain, Germany and Italy expected
to be signed by July 2009
z Future export opportunities being
pursued
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Military transport – supporting growth
z AE 2100 turboprop in C-130J and C-27J
- c.800 engines delivered for C-130J with
further potential 700+ engines
- 80 engines delivered for C-27J; further
potential 500+ engines; C-27J selected
by US Army and USAF for new Joint
Cargo Aircraft - subject to budget review
z T56 turboprop in C-130, E-2C, C-2A, P-3
- Approximately 7,500 engines currently in
service worldwide; Over 220 million flight
hours
- T56 3.5 Upgrade provides increased
performance, increased reliability and
fuel savings
Accessing global market opportunities
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Next generation transport A400M: TP400
z Designed to meet the European
requirement for a tactical and strategic
airlift aircraft
z TP400-D6 draws on Rolls-Royce civil
turbofan and military large turboprop
experience
z 180 aircraft requirement for Nation
Partners (~800 engines)
z While the overall A400M programme has
encountered some delays, the first
engine flew successfully in the Flying
Test Bed aircraft at the end of 2008
z Strong export potential for aircraft/TP400
Long term opportunity with good prospects
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Agenda
Overview and market position
Market outlook
Programmes - update
Summary
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Summary
z Solid long-term business with sound order book and good forward
visibility
z World leading company-wide technologies
z Broad portfolio covering all key defence sectors
z Long programme lives and strong mix of new and mature
programmes
z Access to a global customer base
z Substantial aftermarket business with significant scope for growth
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Defence Aerospace
Delivering innovative military propulsion solutions
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