29 July 2014
TERMINATION BY AIRBUS OF SKYMARK ORDER FOR SIX AIRBUS A380 AIRCRAFT
Rolls-Royce notes the termination by Airbus of an order for six Trent 900-powered Airbus A380 aircraft from Skymark Airlines of Japan. The aircraft were due for delivery between 2014 and 2015. The airline had also selected TotalCare service and support for the engines.
About Rolls-Royce Holdings plc
1. This cancellation reduces the Group's order book by £351m which represents 0.5% of the Group's order book of £71.4bn as at 31 December 2013.
2. Rolls-Royce announced on 15 September 2011 that Skymark had signed a letter of intent for the six Trent 900-powered aircraft. On 18 December 2012 Rolls-Royce announced that Skymark had signed a contract for Trent 900 engines with long-term TotalCare® service support.
3. Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Marine & Industrial Power Systems (MIPS). These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines, for use on land, at sea and in the air.
4. Aerospace comprises Civil Aerospace and Defence Aerospace. MIPS comprises Marine, Energy & Nuclear and Power Systems (RRPS). On 7 March 2014, Daimler announced their intention to exercise their option to sell their 50% share in RRPS to Rolls-Royce Holdings plc. On 16 April 2014, the valuation was agreed and the transaction is expected to complete within the coming months, subject to the usual regulatory approvals. On 6 May 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.
5. Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.
6. Our business is focused on the 4Cs:
· Customer - placing the customer at the heart of our business
· Concentration - deciding where to grow and where not to
· Cost - continually looking to increase efficiency
· Cash - improving financial performance.
7. Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £71.6 billion at 31 December 2013.
8. In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers with the forefront of scientific research.
9. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
10. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices through our worldwide training programmes.
For further information, please contact:
Investors:
Simon Goodson
Director - Investor Relations
Rolls-Royce plc
Tel: +44 (0)20 7227 9237
Email: [email protected]
Media:
Richard Wray
Director of External Communications
Rolls-Royce plc
Tel: +44 (0)20 7227 9163
Mobile +44 (0)7974 918 416
Email: [email protected]
www.Rolls-Royce.com
