Aerospace Defence

Rolls-Royce Holdings PLC 2015 Half Year Results

Posted 31 July 2015

Warren East, Chief Executive, said: “Despite the disappointment of our recent update, our second half outlook remains positive and full-year guidance for revenue, profit and cash issued on July 6th remains unchanged. The continued growth in our order book demonstrates the long-term demand for our innovative products and services, and underpins my confidence in the fundamental strength of our business.”

Commenting on the outlook, Warren East, added : “In the near term, we are managing a significant transition from mature engines to newer, more fuel efficient ones, such as the Trent XWB, Trent 7000 and Trent 1000. At the same time, we are taking appropriate actions to mitigate the effects of weakness in our offshore marine markets.

“While these create a profit headwind in the near term, it is critical we successfully deliver our product launches, complete our supply chain transformation and sustain investment in our businesses to strengthen their competitive positions. The initial phase of my ongoing operational review has and will continue to concentrate on how we drive improvements and sharpen our focus to make us a more resilient and sustainable business.”

This Half Year Results Announcement contains forward-looking statements. Any statements that express forecasts, expectations and projections are not guarantees of future performance and will not be updated. By their nature, these statements involve risk and uncertainty, and a number of factors could cause material differences to the actual results or developments. This report is intended to provide information to shareholders, is not designed to be relied upon by any other party, or for any other purpose and the Company and its directors accept no liability to any other person other than under English law.

Group Overview

The fundamental strengths of Rolls-Royce have not changed. The business has built a strong order book, now worth £76.5bn, a track record of sustained growth in widebody market share and a recognised portfolio of innovative products and services in each of our target market segments, with high barriers to entry and long service lives. We believe that the strengths and balance of the business will support attractive long term growth in cash and profit. Across the business, investments in supply chain transformation and improved efficiency, during a period of important product transition for Civil Aerospace, are being supported by our continued focus on the 4Cs: Customer, Concentration, Cost and Cash.

A PDF copy of this report can be downloaded from www.rolls-royce.com/investors .