ROLLS-ROYCE HOLDINGS PLC – 2022 Full Year Results
Improved profit and cash in 2022; transformation programme underway to create a high-performing, growing and competitive business
· Improved orders, revenue, profit and cash flow in 2022
– Strong new order wins in Civil Aerospace and Defence and a record order book in Power Systems
– Underlying operating profit of £652m, £238m higher than the prior year, with the increase driven by Civil Aerospace and Power Systems
– Free cash flow from continuing operations of £505m, £2.0bn higher than the prior year, led by engine flying hour recovery
– Net debt of £3.3bn, down from £5.2bn at end 2021, due to disposals and improved cash flow
· Focused on delivering significant performance improvement in 2023 and beyond
– Transformation programme in place to deliver further performance improvements from 2023, informed by rigorous benchmarking
– Underlying operating profit guidance of £0.8-£1.0bn and free cash flow of £0.6-£0.8bn in 2023; includes early benefits from transformation
– Strategic review underway to identify investment priorities; medium-term financial targets to be set in the second half of 2023
Tufan Erginbilgic, CEO said: “It is an honour to lead Rolls-Royce, one of the world’s most trusted brands and a business with strong positions in growing markets. Our people take tremendous pride in our innovation and engineering solutions. Together, we must now move at pace and harness that pride to create a high-performing, growing and competitive business.
While our performance improved in 2022, we are capable of much more. Our transformation programme will improve our efficiency and commercial outcomes, and deliver a sustainable reduction in working capital. This will require a winning culture, underpinned by more effective performance management and a shared determination to deliver cash and reduce debt. Our success will enable us to reward investors for their support and invest in future growth.
Our transformation programme is already underway and is moving at pace. It will include a strategic review so that we can prioritise our investment towards the most profitable opportunities. We will report the findings together with our medium-term goals in the second half of this year.”
Full Year 2022 Group continuing operations
| Underlying2022 | Underlying 2021 | Statutory 2022 | Statutory2021 | |
| £ million | ||||
| Revenue | 12,691 | 10,947 | 13,520 | 11,218 |
| Operating profit | 652 | 414 | 837 | 513 |
| Operating margin (%) | 5.1% | 3.8% | 6.2% | 4.6% |
| Profit/(loss) before taxation | 206 | 36 | (1,502) | (294) |
| Earnings/(loss) per share (pence) | 1.95 | 0.11 | (14.24) | 1.48 |
| Free cash flow | 505 | (1,485) | ||
| Net cash flow from operating activities 1 | 1,850 | (259) | ||
| Net debt 1 | (3,251) | (5,157) |
1 Includes discontinued operations
A reconciliation of alternative performance measures to their statutory equivalent is provided on pages 48 to 51
2022 performance summary
· Recovering demand. Large engine flying hours (EFH) in Civil Aerospace grew by 35% year on year as recovery in international travel continued. New large engine orders were received from Malaysia Aviation Group, Norse Atlantic Airways and Qantas. The Bell V-280 Valor, powered by our AE1107F engines, was selected by the US Army for the Future Long Range Assault Aircraft programme. Order intake in Power Systems grew 29% to £4.3bn.
· Higher profit and margins. The year on year increase in Group operating profit was driven by higher profits in Civil Aerospace and Power Systems, partly offset by lower profit in Defence and increased investment in New Markets. The higher Group margin versus the prior year was driven by improvements in long-term service agreement (LTSA) contract margins and increased spare engines profit in Civil Aerospace. This was partly offset by the non-repeat of a foreign exchange revaluation credit in Civil Aerospace and legacy spare parts sales in Defence in 2021, and lower margins in Power Systems due to cost increases.
· Stronger cash flows. Free cash flow from continuing operations improved from an outflow of £1.5bn in 2021 to an inflow of £0.5bn, driven by 35% growth in large engine flying hours, comparatively lower growth in large engine major shop visits at 19%, and higher Defence cash flow. Higher inventory in Power Systems saw its cash conversion ratio fall. Free cash flow benefitted from higher Civil Aerospace LTSA invoiced flying hour receipts of £3,564m (2021: £2,289m), the collection of overdue balances in Civil Aerospace (c£180), and a customer advance in Defence (£63m) and Power Systems (year on year increase of c£150m).
· Lower net debt. Net debt was reduced from £5.2bn to £3.3bn, as we completed our disposal programme. We have £4.1bn of drawn debt, of which £0.5bn matures in 2024, £0.8bn in 2025 and £2.8bn in 2026-2028, and £1.8bn of lease liabilities. We have £2.6bn cash and £5.5bn undrawn facilities.
· Shareholder payments will not be made for 2022. We are committed to returning to an investment grade credit rating through performance improvement, and to resuming shareholder payments.
Transformation programme and strategic review
We have carried out extensive work to benchmark our performance against that of our peers. This work shows that there is significant scope for us to deliver materially higher profit, cash flows and returns. We will create a stronger, growing business with a clear proposition for investors based upon delivering:
· a high quality and competitive business, focused on profitable performance and operational efficiency;
· growing sustainable cash flows, generated from operations and disciplined capital investment; and
· a strong balance sheet and growing shareholder returns.
We have already begun an ambitious transformation programme to deliver a step-change in our performance. It consists of seven workstreams, each led by a senior executive:
Efficiency and simplification – delivering sustainable cost efficiencies.
Commercial optimisation – getting the right reward for the risks we take and the value we create for customers.
Working capital – delivering a significant and structural reduction across the Group.
Business improvement – each business unit building and delivering plans to address performance gaps to realise its potential.
Strategic review – enabling prioritisation of investment opportunities.
Performance management – delivering on our expectations of high performance from all businesses and employees.
Purpose and culture – instilling our people with the right mindset to be confident, proactive and timely in our actions.
The outcomes of these workstreams will drive a clear and granular plan. We will communicate this to you alongside medium-term financial targets in the second half of the year.
Outlook and 2023 Guidance
A continued recovery in our end markets and the actions we are taking give us confidence in delivering higher profit and cash flows in 2023.
| Underlying 2023 financial guidance | |
| Operating profit | £0.8bn-£1.0bn |
| Free cash flow | £0.6bn-£0.8bn |
Our 2023 operating profit guidance of £0.8-1.0bn assumes £100-200m of targeted contract improvements (2022: £319m).
Our 2023 free cash flow guidance of £0.6-0.8bn is based on c£500-700m growth in the Civil LTSA Creditor
(2022: £792m), a year on year headwind of approximately £200m associated with legacy Boeing OE concessions and a c£100m adverse impact in 2023 due to fires at two suppliers’ premises in late 2022 and early 2023. This cash impact will reverse in 2024.
In 2023, we assume large engine flying hours at 80-90% of 2019’s level and 1,200-1,300 total shop visits.
Additional detail is included in the results presentation and supplementary data slides.
Underlying financial performance by business
| £ million | Underlying revenue | Organic Change 1 | Underlying operating profit/(loss) | Organic change 1 | Underlying operating margin | Margin change (pts) |
| Civil Aerospace | 5,686 | 25% | 143 | nm | 2.5% | 6.3pt |
| Defence | 3,660 | 2% | 432 | (10)% | 11.8% | (1.8)pt |
| Power Systems | 3,347 | 23% | 281 | 17% | 8.4% | (0.4)pt |
| New Markets | 3 | nm | (132) | nm | nm | nm |
| Other businesses | − | nm | (31) | nm | nm | nm |
| Corporate/eliminations | (5) | nm | (41) | nm | nm | nm |
| Total (continuing operations) | 12,691 | 14% | 652 | 48% | 5.1% | 1.3pt |
1 Organic change is the measure of change at constant translational currency applying full year 2021 average rates to 2022. All underlying income statement commentary is provided on an organic basis unless otherwise stated
All results are shown for Group continuing operations, on an underlying basis, excluding discontinued operations (ITP Aero). For more details, see note 2 of the Condensed Consolidated Financial Statements (page 22).
nm is defined as not measurable.
Trading cash flow
| £ million | 2022 | 2021 |
| Civil Aerospace | 226 | (1,670) |
| Defence | 426 | 377 |
| Power Systems | 158 | 219 |
| New Markets | (57) | (56) |
| Other businesses | 5 | (43) |
| Corporate/eliminations | (49) | (38) |
| Total trading cash flow (continuing operations) | 709 | (1,211) |
| Taxation | (172) | (182) |
| Underlying operating profit charge exceeded by contributions to defined benefit schemes | (32) | (92) |
| Total free cash flow (continuing operations) | 505 | (1,485) |
Civil Aerospace
| 2022 key Civil operational metrics: | Large engine | Business aviation/ Regional | Total | Change |
| OE deliveries | 190 | 165 | 355 | 15% |
| LTSA engine flying hours (millions) | 10.0 | 3.2 | 13.2 | 29% |
| Total LTSA shop visits | 703 | 341 | 1,044 | 10% |
| …of which major shop visits | 248 | 328 | 576 | 8% |
Our Civil Aerospace business continues to recover from the impact of COVID-19. Large engine flying hours were up 35% year on year at 65% of 2019 levels, with an improvement at the end of the year as travel restrictions in China eased. We expect large EFH at 80-90% of 2019 levels in 2023. Business aviation demand continues to remain above 2019 levels.
We saw new large engine orders from Malaysia Aviation Group, Norse Atlantic Airways and Qantas in 2022 and we welcomed the launch of the new A350 freighter. In February 2023, we received an order from Air India for 68 Trent XWB-97 engines, plus options for 20 more, and 12 Trent XWB-84 engines.
OE deliveries rose by 15% year on year, with 165 business aviation deliveries (2021: 114) and 190 total large engine deliveries (2021: 195). In 2022, we delivered 44 large spare engines (2021: 36), which represented 23% of total large engine deliveries (2021: 18%). This is above the typical range of 10-15% of total engine deliveries, as we grow the pool of spare engines to underpin fleet health and improve resilience. We expect this elevated level of spare engine deliveries to continue in 2023 and 2024.
Total shop visits were 1,044 versus 953 in 2021. There were 248 large engine major shop visits in 2022 versus 208 in 2021. In 2022, we agreed with Air China to create a joint venture overhaul facility that will eventually support up to 250 shop visits per year.
Underlying revenue of £5.7bn was up 25%. OE revenue of £2.0bn was up 23% reflecting higher spare engine deliveries. Services revenue of £3.7bn was up 26% on the prior year, reflecting higher large engine shop visits, aftermarket revenue growth from business aviation, regional and V2500, and positive LTSA catch-ups £360m, (2021: £214m).
Underlying operating profit was £143m (a 2.5% margin) versus a loss of £(172)m in 2021. The year on year increase was driven by improvements in LTSA contract margins, with an onerous provision credit of £51m
(2021: a £122m charge) and £319m of positive LTSA catch-ups (2021: £256m), a higher volume and different mix of large spare engine sales with more third party sales to capacity providers than in the prior year, increased aftermarket profit, and reduced losses on installed large engine OE deliveries. This was partly offset by the
non-repeat of a foreign exchange revaluation credit of c£140m in 2021.
Trading cash flow was £226m versus £(1,670)m in the prior year. The improvement was due to higher engine flying hour receipts reflecting the growth in LTSA flying hours, which grew at a materially faster rate than shop visits in 2022. Cash flows in 2022 benefited from the recovery of overdue balances from airlines incurred during the pandemic of c£180m.
Improvements in underlying operating profit and cash flows were delivered despite the challenges associated with inflation and the supply chain, which are expected to persist in 2023.
Defence
Order intake in our Defence business was £5.4bn in 2022 versus £2.3bn in 2021, with a book-to-bill of 1.5x versus 0.7x last year. The Bell V-280 Valor, powered by our AE1107F engines, was selected by the US Army for the Future Long Range Assault Aircraft programme. Major contract awards included the renewal of $1.8bn of services contracts in the U.S. for trainer and transport aircraft over the next five years. These awards, combined with increased military activity and spending underpin the long-term outlook for the business. Our order backlog at the year end was £8.5bn, with 86% order cover in 2023 and a high degree of cover in 2024 and beyond.
Revenue increased 2% to £3.7bn. OE revenue was up 10% year on year, with strong growth in Submarines along with new programmes (including B-52 and UK Combat). This more than offset reductions in services revenue, down 3% due to the non-repeat of legacy spare parts sales made in 2021.
Operating profit was £432m (11.8% margin) versus £457m (13.6% margin) in the prior year, reflecting the non-repeat of £45m of high margin one time legacy spare parts sales in the prior year and the changing mix of the business. Self-funded R&D and investment levels were elevated, as we support growth across the portfolio including the UK Future Combat programme and opportunities in North America.
Trading cash flow of £426m improved versus £377m last year, despite slightly lower underlying profit and increased inventory, due to an advance payment from one of our customers of £63m.
Power Systems
Order intake in our Power Systems business was £4.3bn, 29% higher than the prior year, a record level for the business. We saw strong demand in many of our end markets, notably Power Generation including mission critical backup power, and for our engine systems and services. As a result, we now have 76% order cover for 2023.
Underlying revenue was £3.3bn, up 23% and above the previous peak in 2019. Services revenues grew 16% as product utilisation increased in our end markets, and OE revenue rose by 26%. Sales were strongest in the industrial and power generation end markets, partly offset by lower activity in China.
Operating profit was £281m (8.4% margin) versus £242m (8.8% margin) in the prior year. The lower margin versus the prior year reflects higher costs associated with inflation and supply chain disruption, increased
self-funded R&D, one-off charges including intangible asset impairments and write-downs of assets due to the Russia-Ukraine conflict, partly offset by the benefit of higher volumes.
Trading cash flow was £158m, a conversion ratio of 56% versus 90% last year. The lower conversion year on year reflects a higher level of inventories due to supply chain disruption and the pace of revenue growth, partly offset by increased customer advance payments.
New Markets
Investment increased in both Electrical and Small Modular Reactors (SMR), which resulted in an increased operating loss of £132m versus £70m last year. In 2022, Rolls-Royce Electrical entered into an agreement with Hyundai Motor Group to bring all-electric propulsion and hydrogen fuel cell technology for the Advanced Air Mobility market. We also entered into partnership with Embraer EVE to develop propulsion systems for their platform. Technologies developed in our Electrical business can be leveraged across the Group.
We have shortlisted three possible sites which will be home to one of our major factories in the production of our SMRs, whilst we await our first order in the UK or abroad. This supports our ambitions to manufacture the first fully operational SMR before 2030.
Statutory and underlying Group financial performance from continuing operations
| 2022 | 2021 | |||||
| £ million | Statutory | Impact of hedge book 1 | Impact of acquisition accounting | Impact ofnon-underlying items | Underlying | Underlying |
| Revenue | 13,520 | (829) | − | − | 12,691 | 10,947 |
| Gross profit | 2,757 | (264) | 58 | (74) | 2,477 | 1,996 |
| Operating profit | 837 | (264) | 58 | 21 | 652 | 414 |
| Gain arising on disposal of businesses | 81 | − | − | (81) | − | − |
| Profit before financing and taxation | 918 | (264) | 58 | (60) | 652 | 414 |
| Net financing costs | (2,420) | 1,935 | − | 39 | (446) | (378) |
| (Loss)/profit before taxation | (1,502) | 1,671 | 58 | (21) | 206 | 36 |
| Taxation | 308 | (416) | (9) | 69 | (48) | (26) |
| (Loss)/profit for the year from continuing operations | (1,194) | 1,255 | 49 | 48 | 158 | 10 |
| Basic (loss)/earnings per share (pence) | (14.24) | 1.95 | 0.11 |
1 Reflecting the impact of measuring revenue and costs at the average exchange rate during the year and the valuation of assets and liabilities using the year end exchange rate rather than the rate achieved on settled foreign exchange contracts in the year or the rate expected to be achieved by the use of the hedge book
– Revenue: Underlying revenue of £12.7bn was up 14%, largely driven by underlying revenue increases across Civil Aerospace, Defence and Power Systems. Statutory revenue of £13.5bn was 21% higher compared with 2021. The difference between statutory and underlying revenue is driven by statutory revenue being measured at average prevailing exchange rates (2022: GBP:USD 1.24; 2021: GBP:USD 1.38) and underlying revenue being measured at the hedge book achieved rate during the year (2022 GBP:USD 1.50; H1 2021: GBP:USD 1.39; H2 2021: GBP:USD 1.59).
– Operating profit: Underlying operating profit of £652m (5.1% margin) versus £414m (3.8% margin) in the prior year. The year-on-year growth was led by Civil Aerospace and Power Systems, partly offset by marginally lower year-on-year profits in Defence and increased investment in New Markets. Statutory operating profit was £837m, higher than the £652m underlying operating profit largely due to the £264m negative impact from currency hedges in the underlying results. Net charges of £21m were excluded from the underlying results as these related to non-underlying items comprising: net restructuring charges of £47m; net impairments of £65m, partly offset by the write back of exceptional Trent 1000 programme credits of £69m; and a £22m pension past service credit.
– Profit before taxation: Underlying profit before tax of £206m included £(446)m net financing costs primarily related to net interest payable. Statutory loss before tax of £(1,502)m included £(1,579)m net fair value losses on derivative contracts, £(308)m net interest payable and a net £81m profit from disposals of businesses from continuing operations.
– Taxation: Underlying taxation charge of £(48)m (2021: £(26)m). This reflects a tax charge on overseas profits of £(175)m and a tax credit due to increases in certain UK deferred tax assets of £127m. Deferred tax has not been recognised on current year UK tax losses. The tax charge in 2021 was driven by similar factors.
Free cash flow
| 2022 | 2021 | |||||
| £ million | Cash flow | Impact of hedge book | Impact of acquisition accounting | Impact of other non-underlying items | Funds flow | Funds flow |
| Operating profit | 837 | (264) | 58 | 21 | 652 | 414 |
| Operating profit/(loss) from discontinued operations | 86 | − | − | − | 86 | (43) |
| Depreciation, amortisation and impairment | 1,076 | − | (58) | (65) | 953 | 971 |
| Movement in provisions | (197) | 91 | − | 83 | (23) | (136) |
| Movement in Civil LTSA balance | 1,158 | (366) | − | − | 792 | 66 |
| Other operating cash flows 1 | 72 | (53) | − | 22 | 41 | (90) |
| Operating cash flow before working capital and income tax | 3,032 | (592) | − | 61 | 2,501 | 1,182 |
| Working capital (excluding Civil LTSA balance) 2 | (348) | (165) | − | (19) | (532) | (810) |
| Cash flows on other financial assets and liabilities held for operating purposes | (660) | 737 | − | − | 77 | (85) |
| Income tax | (174) | − | − | − | (174) | (185) |
| Cash from operating activities | 1,850 | (20) | − | 42 | 1,872 | 102 |
| Capital element of lease payments | (218) | 20 | − | − | (198) | (374) |
| Capital expenditure and investment | (512) | − | − | 36 | (476) | (426) |
| Interest paid | (352) | − | − | − | (352) | (331) |
| Settlement of excess derivatives | (326) | − | − | − | (326) | (452) |
| Other | 49 | − | − | (78) | (29) | 39 |
| Free cash flow | 491 | − | − | − | 491 | (1,442) |
| – of which is continuing operations | 505 | 505 | (1,485) |
1 Other operating cash flows includes profit/(loss) on disposal, share of results and dividends received from joint ventures and associates, interest received, flows relating to our defined benefit post-retirement schemes, and share based payments
2 Working capital includes inventory, trade and other receivables and payables, and contract assets and liabilities (excluding Civil LTSA balances)
Free cash flow in the year was £0.5bn, an improvement of £2.0bn compared with the prior year driven by:
– Operating cash flow before working capital and income tax of £2.5bn, £1.3bn higher year on year. The improvement at the Group level was principally due to higher flying hours in Civil Aerospace. Large engine flying hours increased by 35%, driving a £1.3bn increase in invoiced EFH receipts (from £2.3bn in 2021 to £3.6bn in 2022). Large engine major shop visit volumes of 248 were 19% higher than in the prior year (2021: 208). The movement in provisions of £(23)m largely related to utilisation of the Trent 1000 provision and movements in the contract loss provisions. Other operating cash flow movement of £41m included £36m interest received, the £131m improvement year on year was mainly due to lower pension contributions and higher dividends received from joint ventures.
– Working capital £(0.5)bn, £0.3bn better year on year. Supply chain disruption resulted in an increase in inventories through 2022, notably in Civil Aerospace and Power Systems, which partly unwound at the end of the year. This was partly offset by a net inflow across payables and receivables reflecting collections of overdue debts in Civil Aerospace (c£180m in 2022), increased advance payment receipts in Power Systems (a c£150m year on year benefit) and a £63m advance payment received in Defence.
– Income tax of £(174)m, net cash tax payments in 2022 were £(174)m (2021: £(185)m).
– The capital element of lease payments was £(198)m, £(176)m lower than 2021 (£(374)m). In the prior year the elevated cost was driven by end of lease payments made on a small number of engines, as well as timing impacts on lease payments, with 2022 returning to more typical levels.
– Capital expenditure and investments of £(476)m, comprising £(302)m PPE additions net of disposals, £(202)m intangibles additions, partly offset by a net movement in investments of £28m. The combined additions were similar to last year.
– Interest paid of £(352)m, including lease interest payments, similar to the £(331)m in 2021. Following the repayment of the £2bn UK Export Finance backed loan in September 2022, we would expect interest paid to fall in 2023.
– Settlement of excess derivative contracts of £(326)m, down from £(452)m in 2021. The decrease was in line with previously communicated guidance and reflects the profile of derivative contracts taken out to reduce the size of the hedge book. In total £710m of excess derivative settlements are left to be settled between 2023 and 2026.
Balance Sheet
| £ million | 2022 | 2021 | Change |
| Intangible assets | 4,098 | 4,041 | 57 |
| Property, plant and equipment | 3,936 | 3,917 | 19 |
| Right of use assets | 1,061 | 1,203 | (142) |
| Joint ventures and associates | 422 | 404 | 18 |
| Contract assets and liabilities | (10,681) | (8,836) | (1,845) |
| Working capital 1 | 2,297 | 1,458 | 839 |
| Provisions | (2,333) | (1,582) | (751) |
| Net debt 2 | (3,251) | (5,110) | 1,859 |
| Net financial assets and liabilities | (3,649) | (3,034) | (615) |
| Net post-retirement scheme deficits | (420) | (225) | (195) |
| Taxation | 2,468 | 1,787 | 681 |
| Held for sale 3 | − | 1,305 | (1,305) |
| Other net assets and liabilities | 36 | 36 | − |
| Net liabilities | (6,016) | (4,636) | (1,380) |
| Other items | |||
| USD hedge book (US$bn) | 19 | 22 | |
| Civil LTSA asset | 885 | 915 | |
| Civil LTSA liability | (8,257) | (7,129) | |
| Civil net LTSA liability | (7,372) | (6,214) |
1 Net working capital includes inventory, trade receivables and payables and similar assets and liabilities
2 Net debt (adjusted by £0.1bn to exclude net debt held for sale in 2021) includes £86m (2021: £37m) of the fair value of derivatives included in fair value hedges and the element of fair value relating to exchange differences on the underlying principal of derivatives in cash flow hedges
3 Held for sale in 2021 mainly related to ITP Aero which was disposed of on 15 September 2022
Key drivers of balance sheet movements were:
Contract assets and liabilities: The £(1,845)m movement in the net liability balance was mainly driven by an increase in deposits, foreign exchange movements and invoiced LTSA receipts in Civil Aerospace exceeding revenue recognised in the year, partly offset by £360m positive LTSA catch-ups.
Working capital: The £2.3bn net current asset position was £0.8bn higher than prior year, due to increased inventory of £1.0bn mostly in Civil Aerospace due to delayed outputs and supply chain disruption and Power Systems to support sales. Receivables increased by £1.6bn and payables increased by £(1.8)bn primarily driven by ITP Aero being external to the Group at year-end. Other drivers included higher trading volumes resulting in higher payables and receivables.
Provisions: The £(751)m increase primarily reflected the adoption of the amendment to IAS 37 for Onerous Contracts – Cost of Fulfilling a Contract which increased contract loss provisions by £(723)m on 1 January 2022. The amendment clarifies that the direct cost of fulfilling a contract comprises the incremental costs of fulfilling that contract and also an allocation of other costs that relate directly to fulfilling contracts.
Net debt: Decreased from £(5.1)bn to £(3.3)bn driven by the completion of the disposal programme and free cash inflow of £0.5bn. Our liquidity position is strong with £8.1bn of liquidity including cash and cash equivalents of £2.6bn and undrawn facilities of £5.5bn. Net debt included £(1.8)bn of lease liabilities (2021: £(1.7)bn).
Net financial assets and liabilities: A £(615)m increase in the net financial liabilities driven by a change in fair value of derivative contracts largely due to the impact of the movement in GBP:USD exchange rates, partly offset by deals that matured in the year.
Net post-retirement scheme deficits: A £(195)m increase in the net deficit driven by an increase in bond yields and inflation impacting both plan assets and obligations.
Taxation: The net tax asset increased by £681m, most of which related to an increase in the deferred tax asset on unrealised losses on derivatives of £329m and certain other UK deferred tax assets of £118m reflecting tax relief that will be taken in the future, based on profit forecasts. There has also been a £165m decrease in deferred tax liabilities, the majority of which related to a reduction in the UK pension surplus.
Results meeting and conference call
Our results presentation will be held at the London Stock Exchange and webcast live at 08:30 (GMT) today. Downloadable materials will also be available on the Investor Relations section of the Rolls-Royce website. https://www.rolls-royce.com/investors/results-and-events.aspx
To register for the webcast, including Q&A participation, please visit the following link: https://app.webinar.net/0LPb3yGpVaO
Please use this same link to access the webcast replay which will be made available shortly after the event concludes. Photographs and broadcast-standard video are available at www.rolls-royce.com
Enquiries:
| Investors: | Media: | |||
| Isabel Green | +44 7880 160976 | Richard Wray | +44 7810 850055 |
This 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 Rolls-Royce Holdings plc and its directors accept no liability to any other person other than under English law.
LSE: RR.; ADR: RYCEY; LEI: 213800EC7997ZBLZJH69
Notes:
Statutory results were referred to as “reported” results in the 2021 full year results statement.