Rolls-Royce Group plc Annual report 2010
Trusted to deliver excellence
01 Introduction and highlights 02 Chairman’s statement 04 Chief Executive’s review 08 Our consistent strategy 20 Market outlook 22 Key performance indicators 26 Principal risks and uncertainties 28 Review of operations 28 civil aerospace 30 defence aerospace 32 marine 34 energy 36 engineering and technology 38 operations 40 Services 42 Sustainability 48 Finance Director’s review
56 56 58 58 59 62 63 63 64 67 78 80 81 81 Chairman’s introduction Board of directors The Group Executive The International Advisory Board Governance structure Audit committee report Nominations committee report Ethics committee report Risk committee report Directors’ remuneration report Shareholders and share capital Other statutory information Material litigation Annual report and financial statements
Directors’ report The directors present the Annual report for the year ended december 31, 2010 which includes the business review, governance report and audited financial statements for the year. references to ‘rolls-royce’, the ‘group’, the ‘company’, ‘we’, or ‘our’ are to rolls-royce group plc and/or its subsidiaries, or any of them as the context may require. Pages 01 to 82, inclusive, of this Annual report comprise a directors’ report that has been drawn up and presented in accordance with english company law and the liabilities of the directors in connection with that report shall be subject to the limitations and restrictions provided by such law. rolls-royce group plc is incorporated as a public limited company and is registered in england under the Uk companies Act 1985 with the registered number 4706930. rolls-royce group plc’s registered office is 65 Buckingham gate, london, Sw1e 6AT. Cautionary statement regarding forward-looking statements This Annual report has been prepared for the members of the company only. The company, its directors, employees or agents do not accept or assume responsibility to any other person in connection with this document and any such
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responsibility or liability is expressly disclaimed. This Annual report 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 group, anticipated cost savings or synergies and the completion of the group’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 Annual report, and will not be updated during the year. nothing in this Annual report should be construed as a profit forecast.
our ability to design and develop high-technology products and then integrate these into sophisticated power systems for land, sea and air, provides us with access to global markets.
Working together we…
ORDER BOOK FIRM AND ANNOUNCED £bn
UNDERLYING REVENUE £m
60 40 20 0 01 02 03 04 05 06 07 08 09 10
12,000 8,000 4,000 0