Presentation on Rolls royce

7/29/2019 Presentation on Rolls royce

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PRESENTATIONON

BY-

TABASSUM KHALID11MBA IB 10

SABRINA FATIMA

11 MBA IB 18


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World's second largest aero engine manufacturer.

Started in 1906, initially manufactured & sold cars.

Later started manufacturing aero engines- civil & defense aircraft.

Realized the need to enter US global market

In 1960, bagged contract with Lockheed Corp - RB211-22 In 1971, declared bankruptcy & was nationalized by British

Govt. In 1996, John Rose became the new CEO & provided new

direction.


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The name is one of its mostvaluable assets.

It is a reassurance of trust intheir technical capability.

It means more thanengineering excellence. It is astandard of quality across alltheir activities.

'To be Trusted to DeliverExcellence is the centralorganising thought. It is achallenge need to live upevery day in everything itdoes.


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A global organisation active in 50 countries, and hadspent the past 100 years building a reputation fortechnical innovation and excellence.

Rolls-Royce has enabled land-speed records,designed ships that can shatter sheets of Arctic iceand developed turbines that generate power in someof the most inhospitable places on earth. Over the

past century, on land, at sea and in the air, they havecontinuously redefined what is possible.


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To provide the finest, most technologically

advanced power systems the world has ever

seen. Whether our products are for use on

land, at sea or in the air, we continually strive

to redefine what is possible.


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ROLLS ROYCE: FOUR MARKET


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Over 12,000 engines

Powers 25 types of

aircraft

68% services revenue

18,000 engines

24 engine programmes

103 countries

160 armed forces

25% services revenue


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-25,000 power & propulsion

units-2,500 customers

-70 navies

-Products on 30,000 vessels

-5% services revenue

-4,000 power systems

-1,600 customers

-120 countries

-35% services revenue


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In 2011, Rolls-Royceperformed well in difficultmarket conditions.

We have a 62.2 billion

order book, underlyingrevenue has grown to11.3 billion andunderlying profit hasincreased 21 per cent to

1.2 billion. This success is due to the

extraordinary team ofover 40,000 people thatwork for Rolls-Royce.


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2011 revenue bysegment

A decade of growth despite significant challenges


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In 1973, automotive division separated from

aero engine division.

Spun-off separately as Rolls-Royce Motors

Success ofRB211-22(turbofan engine)

More durable & Fuel-efficient Scalability

In 1987, it was privatized by British Govt.

Listed on London Stock Exchange

Rolls-Royce became 3rd largest

manufacturer of aero engines after GE,

Aviation & P&W


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Start of Trent Engine Series again Suitable to the customer

Features:

-More Fuel Efficient-Lower Emission-More durability


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The main focus of the

company was to

prolong the operating

life span of its aircraft

engine .

The replacement of

engine involved

significant costs to an

airline company and

consumed a lot of

time.

Rolls Royce took up

the risk and cost for

an aircraft downtime

and repairs and put

more efforts to

provide superiorservices.


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EHM Service allowed the company to

access the operational data

during a flight that helped the

company repair the engine quickly.

As a result the airlines preferred

buying aero engines from those

manufactures that allowed quality

After sales service contract over the

life span of the engine.


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The secret to Rolls business model is in the

aftercare market. As the companys installed

base of equipment grows, the market for parts

and maintenance also grows.


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The company experienced some rare negative

headlines after a fleet of new Qantas A380s wasgrounded after an explosion in a Rolls engine. But

this issue have now been rectified.

Setback for the company earlier in

July 2012- Five Boeing 787 Dreamliners

had to be grounded because a componentin the Rolls-made engine needs to be replaced.


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As part oftheir rigorous approach to product

safety and quality, they have identified that acomponent on Trent 1000 engines fitted to Boeing787 Dream liners has a reduced service life.

As a proactive measure, this component is being

replaced in a number of engines. They are workinghard to minimise disruption to customeroperations. But despite Rolls reassurance, itsshares dropped.

Threat of climate changes and other environmentalchallenges like emission of carbon.


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Performing strongly in challenging conditions

Rolls-Royce has a

highly-skilled and

motivated teamproud of its heritage

and ambitious for its

future

Sir Simon Robertson

Chairman

Rolls-Royce continued to perform well during2011 with our order book growing to a record62.2 billion. Underlying profits increased 21per cent to 1,157 million. We are proposing a

final payment to shareholders of 10.6 penceper share, bringing the full year payment to17.5 pence per share. This is an increase ofnine per cent and reflects the Boardscontinuing confidence in the Groups future.


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Rolls-Royce produce a range of quality world class turbine

engines, and have recognised that they must change in orderto compete effectively with their competitors.

Therefore, they implemented the ERP system. Increasedorders from the market place, and also from the fact that

ERP has become a standard solution world-wide within theAerospace and Defence industry.

Deciding where to invest for future growth.

Although they are subject to inflationary pressures and

tough competition they will benefit from the growth of thebusiness, from investments that will improve efficiency andfrom an increasing focus on cost performance and cashconversion.


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Acquisition of the German industrial enginesgroup Tognum, biggest acquisition, made in ajoint offer with Daimler. It will bring togetherhighly complementary product and technology

portfolios and creates significant newopportunities for marine and energybusinesses.

Signed an exclusive deal with Airbus to power

the long-range Airbus A350-1000 aircraft, forwhich they will develop an enhanced TrentXWB engine.


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To sell equity stake in International Aero Engines(IAE) to Pratt & Whitney, at the same timeannouncing the intention to form a new jointventure to develop engines for the next generation ofmid-size aircraft. This agreement builds on a longand successful partnership with Pratt & Whitney,and charts a clear course for our future in thisimportant market segment.

Energy business signed its biggest ever single

contract to supply Petrobras, Brazils leading oilcompany, with 32 gas turbine generation packagesto support its offshore operations.


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They continue to follow thestrategy that has been in place formany years, and can be summarized as:

Addressing four global markets: civil aerospace, defenseaerospace, marine and energy.

Investing in technology, capability and infrastructure.

Developing a competitive portfolio of products andservices.

Focusing on growing market share and their installedproduct base.


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Adding value for the customers throughproduct-related services.

Recognised the importance of sustainable

development.

Continuously developing more efficient power

and propulsion systems.

Maximise R&D investment through an

approach of invest once use many times inproducts across the four major segments.


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Rolls-Royce has retained itsposition in the DJSI for thetenth consecutive year, withan overall score of 78 percent (aviation and defencesector average 49 per cent).

In 2011, Rolls-Royce retainedits Gold status with anoverall score of 91 per cent.Also scored 94 per cent in theEnvironmental Indexcomponent of the overall

survey. One of the leading companies

in the CDP Index.(75% in2011, 79% in 2010)


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Delivering for customers and investing in

the business

Our strategy has stoodthe test of time and has

proved itself in battle.

John Rishton

Chief Executive

Demand for our products and

services in 2011 remained

strong. Despite the globaleconomic turbulence of recent

years, Rolls-Royce has

continued to grow.


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Effective utilization of resources.

Operational Efficiency.

Strong market presence.

Focus on Research &

Development.

Strategic Contracts.

Growing US Aerospace Industry.

Positive outlook for global energy

market.

Increase in Defense spending.

Trade Account Receivable.

Substantial Debt.

Lawsuits.

Threats

Stringent Regulations.

Threats facing energy Industry.

Rapidly changing technology.

Substitute for renewable energy

Sources.

Rolls -Royce Group plc.


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MODEL


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Threats of Substitute

Product

There is no substitutefor an aero engine

and the threat of

substitutes for

air transport itself is

minor.


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Threats of New

Entrants

Threats of New

Entrants

Entry to the

aero-engine industry is

extremely difficult.

The market is also

sensitive to the

reputation of the

engine manufacturer.


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Bargaining Power of

supplier

Suppliers have limited

power.Powerful suppliers are

those involved in the

supply of high

specification electronic

control equipment.


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Bargaining Power of

BuyersThe power of buyers is

High.

The numbers of

potential buyers of

new aircraft are low.


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The company is investing in a new engineproduction facility in Singapore and a

turbine blade casting plant in Rotherham,

South Yorkshire.

Company has signed a $2.6bn contract with

Singapore Airlines to power 20 Airbus

A350s and 5 Airbus A380s and agreed an

order for the US Navy to power its futurefleet of Ship to Shore Connector hovercraft.


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As Rolls has produced a new, morepowerful and efficient engine that impressedUS appraisal teams therefore company

believes the order will provide the platformfor winning more contracts with othernavies.


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Rolls Royce developed orientation to become

more business and service focused.

The structure of organization has beenrealigned to meet the needs of the new way of

operating.

Organizational structure define important

relationship within the business.


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Contd..Organization changes from a product-focused

organization towards becoming a service orientedculture.

Rolls Royce corporate Identity is to encourage,

building its past reputation and achieve for continuingsuccess.

Company is also realigning its financial reporting

framework and corporate governance.

This will change how whole business shapes its

purposes and priorities.


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Presentation on Rolls royce