REG - Rolls-Royce Holdings - AGM Statement and Trading Update

Rolls-Royce HoldingsAnnouncement

11/05/2023 07:00

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RNS Number : 0147Z  Rolls-Royce Holdings plc  11 May 2023

                                    11 May
2023

 

ROLLS-ROYCE HOLDINGS PLC AGM STATEMENT AND TRADING UPDATE

 

Rolls-Royce Holdings plc is holding its Annual General Meeting today. In his
address to shareholders, Chief Executive Tufan Erginbilgic will comment:

"We are transforming Rolls-Royce into a high quality and competitive business
with a strong balance sheet and growing profit, cash flows and returns. We are
already benefitting from the actions we are taking as well as recovery and
growth in our end markets. We announced several changes to the executive team
in March to support the transformation, adding leaders with proven track
records of delivery and high-performance. We are making good progress and our
financial performance year-to-date is in line with expectations. I'd like to
thank everyone at Rolls-Royce for their hard work and commitment so far. I am
confident that, together, we can achieve great results."

 

Trading update to 30 April 2023

Our financial performance is improving reflecting positive changes driven by
our transformation programme workstreams and good end market demand for our
products and services. Supply chain management remains a key operational
challenge for us as original equipment and aftermarket services volumes
increase, especially in Civil Aerospace. Our financial performance is in line
with our expectations at the time of the full year results on 23 February. Our
underlying operating profit guidance of £0.8-£1.0bn and free cash flow
guidance of £0.6-£0.8bn in 2023 is unchanged. We anticipate our free cash
flow generation will be seasonally weighted in the second half of the year, as
previously indicated.

 

In Civil Aerospace, long term service agreement large engine flying hours
(EFH) were 83% of 2019 levels in the four months to 30 April, and on track for
the 80% to 90% range for the full year, as guided in February. Shop visit
volumes and OE deliveries are also on track with expectations. We have
continued to win new business including our biggest ever order of Trent XWB-97
engines in the period, with an MoU for 68 engines (plus 20 options) for Air
India.

 

In Defence, we continued our successful run of key programme awards with the
announcement that the AUKUS submarine programme will be powered by Rolls-Royce
nuclear reactors. In the US, Bell's V-280 Valor, powered by our AE1107F
engines, cleared the protest period, enabling our teams to progress to the
next phase, with the first aircraft due to enter into service in 2030. Bell's
V-280 Valor was selected last year by the US Army's Future Long Range Assault
Aircraft programme to replace its Black Hawk helicopters.

 

In Power Systems, revenue growth is being driven by demand for aftermarket
services and exceptionally high order intake in the prior year, especially for
power generation solutions. We are getting improved pricing on new orders
which will drive margins up with the benefits expected to start showing in the
second half of the year. High order intake year-to-date included strong demand
from marine customers, including an order for Series 4000 gensets for the U.S
Navy's Constellation Class frigate programme.

 

Work on the transformation programme is moving at pace. Our increased focus on
efficiency and simplification is helping to keep costs down and has already
identified savings, for example the closure of our R(2) Factory venture. We
are encouraged by the early progress of our commercial optimisation and
working capital workstreams, with positive results expected to build as the
year goes on. Our strategic review is on track and as previously indicated, we
will communicate the findings and medium term targets in the second half of
2023.

 

Our Half Year 2023 results will be announced on 3 August 2023.

 

 

For further information, please contact:

 

Media

Richard Wray

Director of External Communications & Brand, Rolls-Royce plc

Tel +44 (0) 7810 850055

Richard.Wray@Rolls-Royce.com (mailto:Richard.Wray@Rolls-Royce.com)

 

 

Investors

Isabel Green

Head of Investor Relations, Rolls-Royce plc

Tel +44 (0) 7880 160976

Isabel.Green@Rolls-Royce.com (mailto:Isabel.Green@Rolls-Royce.com)

www.Rolls-Royce.com (http://www.Rolls-Royce.com)

 

About Rolls-Royce Holdings plc

 

About Rolls-Royce Holdings plc

1.  Rolls-Royce develops and delivers complex power and propulsion solutions
for safety-critical applications in the air, at sea and on land. Our products
and service packages enable our customers to connect people, societies,
cultures and economies together; they meet the growing need for power
generation across multiple industries; and enable governments to equip their
armed forces with the power required to protect their citizens.

2.  Rolls-Royce has customers in more than 150 countries, comprising more
than 400 airlines and leasing customers, 160 armed forces and navies, and more
than 5,000 power and nuclear customers. We are committed to making our
products compatible with net zero carbon emissions to meet customer demand for
more sustainable solutions.

3.  The annual underlying revenue was £12.69 billion in 2022, and the
underlying operating profit was £652m.

4.  Rolls-Royce Holdings plc is a publicly traded company (LSE: RR., ADR:
RYCEY, LEI: 213800EC7997ZBLZJH69)

www.rolls-royce.com (http://www.rolls-royce.com)

 

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