Statement Re: Press Speculation

RNS Announcement

RNS Number : 8064B

Rolls-Royce Holdings plc

15 January 2018

STATEMENT RE: PRESS SPECULATION

Rolls-Royce notes the recent media speculation and confirms that it is reviewing its strategic options for L'Orange.

Irrespective of the outcome of this review, Rolls-Royce intends to maintain close ties to L'Orange, either as an owner or as a key customer.

This review has no impact on the remainder of the Rolls-Royce Power Systems business and any decision about the future of L'Orange would be subject to the approval of the Supervisory Board of Rolls-Royce Power Systems.

A further announcement will be made as appropriate.

About Rolls-Royce Holdings plc

1. Rolls-Royce's vision is to be the market-leader in high performance power systems where our engineering expertise, global reach and deep industry knowledge deliver outstanding customer relationships and solutions. We operate across five businesses: Civil Aerospace, Defence Aerospace, Marine, Nuclear and Power Systems.

2. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.

3. We have three common themes across all our businesses:

· Investing in and developing engineering excellence

· Driving a manufacturing and supply chain transformation which will embed operational excellence in lean, lower-cost facilities and processes

· Leveraging our installed base, product knowledge and engineering capabilities to provide customers with outstanding service through which we can capture aftermarket value long into the future.

4. Annual underlying revenue was £13.8 billion in 2016, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £82.7 billion at the end of June 2017.

5. In 2016, Rolls-Royce invested £1.3 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.

6. Rolls-Royce employs almost 50,000 people in 50 countries. More than 16,500 of these are engineers.

7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2016 we recruited 274 graduates and 327 apprentices through our worldwide training programmes.

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