2018 Farnborough Airshow
Paul Stein Chief Technology Officer
Pioneering the power that matters 19,400 engineers across the business Global presence in 50 countries Support a Global network 31 University technology centres 704 Patents approved for filing 1,392m R&D spend (gross) 1,035m R&D spend (net) Three core businesses Civil Aerospace 6.6bn Power Systems 3.1bn Defence 3.2bn 3 Following ITP Aero acquisition in December 2017, it will operate and report as a separate business unit
Our changing world Ever-growing passenger numbers and mounting environmental pressures New Propulsion System 4
World-class engines across the widebody fleet Insert video Trent XWB, the world s most efficient aero engine: Dispatch reliability of 99.89% Integration of over 39,000 parts 30,000 engine flying hours per week 5
Leading business aviation Pearl engine family The Peal 15 engine: World leading emissions performance Sole engine for Bombardier s Global 5500 and Global 6500 aircraft Reaffirms our position as the leading business engine supplier 6
Advanced Power & Propulsion System 7
Evolving the jet engine New gas turbine designs Pushing materials technology Design and test in the computer Novel concepts 8
UltraFan Delivering a 25% efficiency improvement 9 2018 Farnborough Airshow Show 9 Investor Relations Technology seminar Seminar
The Electrification of Aviation 10
Revolution in mass passenger transportation Regional growth and new market opportunities 11 Hybrid-Electric flight catalyses: Low-noise aircraft and short runways Transformational airport design and accessibility Diverted rail subsidies Increased passenger numbers 100-600 mile range: Faster and cheaper than transport by rail, road, or hub airports
Digitisation Cyber Protection Machine Learning Internet of Things Virtual Reality Artificial Intelligence Cloud-based services Mobility Data analytics Design Manufacturing Services & support Supply chain Digital thread 12 Cyber Protection
Re-invent with digital Refining the Digital Twin Improving our productivity Generating new service offerings Pioneering new possibilities for design Broadening markets for Rolls-Royce services Insert video 13
Our Products Our Operations Doing what matters for our environment Aviation c. 2% global CO 2 emissions New Propulsion System Alternative Fuels Recover, Recycle and Reuse Materials The Built Environment > 40% global CO 2 emissions Aviation Targets for CO 2 Microgrids Energy Efficient Facilities 14 Small Modular Reactors Low Carbon Power for our Facilities
Competitive Manufacturing Hamid Mughal This document contains information which is proprietary and confidential to Rolls-Royce plc which may not, without the prior written consent of Rolls-Royce plc, be used or reproduced, in whole or in part to any person not employed by Rolls-Royce plc
Manufacturing is well placed to meet the twin product & business challenges Product Requirements Hybrid Systems Novel specs & geometries Electrification Advanced Materials Shortest Time to Market Manufacturing Opportunity Autonomous & Fault Free Value Chain Transparency Design Freedom Best in Class capability at Lowest Total Cost Business Requirements Value Chain Capability Make / Buy Agility Total Resource Efficiency Lowest Capital Exposure Seamless Design / Make 16 Advanced Manufacturing technologies to deliver highly capable and competitive Manufacturing solutions Digital capabilities to enable unprecedented transformational opportunities Advanced Manufacturing Technologies Capability & Competitiveness Flexibility & Responsiveness Mass Customisation Digital Manufacturing Value Chains Integration of Intelligent Machines Advanced Analytics & interoperability Connected & transparent Value Chains Global Collaboration & Partnerships
Our strategic approach to manufacturing Greater application of proven technology to enhance current performance Development of emerging technologies & digitisation to deliver transformational opportunities Deployment on original equipment & repair/ remanufacturing business Application of Proven Technology to enhance current performance Process Modelling On-machine Verification Adaptive Machining Advanced Tooling KPV Control Automated Processes Systems Best in class Digital systems for data driven RFT Manufacture Methods Effective application of coupled technologies & techniques Processes Process innovation to enable step change improvements Development of Emerging Technology to deliver step-change improvements Digital Twin Auto-Visual Inspection Artificial Intelligence Embedded Sensors Remote On-wing-care Robotic Repair 17 Automated NDE High Performance Machining Net-shape Forming Powder Consolidation Laser Texturing Advanced Coating Systems
Enhanced Products Enhanced Processes Horizon Technologies A key area of focus is the development and application of a suite of Horizon technologies Are critical to future competitiveness Offer radical new design options & freedom Additive Layer Manufacturing Advanced Materials Processing Photonics Insert video Powder Materials Processing 18 Electrification Cyber-Physical Systems
Advanced digital manufacturing Underpin the horizon technologies Six overarching workstreams that cover the full scope of Digital Manufacturing Digital thread to integrate product, process and performance 19
Technology as a means to achieve business excellence The work-streams have been configured to cover the full scope our Factories of the Future Best in Class Manufacturing Capability for our Make products Autonomous, flexible, efficient and connected processes 20
Digitally enabled connectivity Help transform our total supply chain Flexibility, responsiveness and transparent supply chains 16 leading global suppliers helping to develop common standards Interoperable systems across the supply chain network Effective, Efficient global connectivity Secure, seamless data exchange 21 Assured knowledge control and sharing
From today s supply chains to tomorrow s integrated manufacturing value chains Integrated Design & Manufacturing Digitised Value Chains Modern Skills & Leadership Ambition Innovative Culture Additive Processes Cyber- Physical Systems Photonics Technologies Net Shape Manufacture Advanced Materials Processing Digital Design & Manufacturing Innovative Physical & Digital Integration Seamless collaboration & Partnerships Others Future Manufacturing Value Chains 22
We are making good progress on this journey Our latest facilities represent best-in-class modern standard Highly mechanised, adaptive, seamless processes Fully digitised methods 100% productivity improvement Digital adaptive control & feedback 23 99.5% feature Right First Time Standardised machine & processes
Q&A 24 2018 Farnborough Airshow Show Investor Relations Technology seminar Seminar
Safe harbour statement This presentation contains certain forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing to the Company, anticipated cost savings or synergies and the completion of the Company's strategic transactions, are forward-looking statements. By their nature, these statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. The forward-looking statements reflect the knowledge and information available at the date of preparation of this presentation, and will not be updated during the year. Nothing in this presentation should be construed as a profit forecast. All figures are on an underlying basis unless otherwise stated. 25