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Pin to quick picksRolls-Royce Regulatory News (RR.)

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Re Contract

30 Jul 2012 16:01

30 July 2012

ROLLS-ROYCE AND SNECMA TO INITIATE JOINT COMBAT ENGINE STUDIES

Rolls-Royce, the global power systems company, and Snecma (Safran Group) have signed a contract with the UK Ministry of Defence to undertake studies into the next generation of UK and French combat aircraft engines, through their 50:50 Rolls-Royce Snecma Ltd joint venture, established in 2001.

Rolls-Royce and Snecma have also announced that they have signed a collaboration agreement with BAE Systems and Dassault Aviation to work together to explore concepts and technologies as part of the Anglo French Future Combat Air Systems Demonstration Programme Preparation Phase contract.

Nick Durham, Rolls-Royce, President, Customer Business - Defence, said: "This collaboration agreement recognises the need for airframe and power and propulsion system suppliers to work together to deliver an optimised affordable solution for the next generation of combat aircraft for the UK and France. It represents an important step towards increased collaboration and, by combining the experience and expertise of Rolls-Royce and Snecma, we can contribute a huge amount to these studies."

Didier Desnoyer, Snecma Vice President and General Manager, Military Engines, said: "This joint venture will capitalise on the long-standing collaboration between Safran and Rolls-Royce on military aircraft engines such as the Adour and TP400. Carrying on this tradition of tight-knit partnership, Rolls-Royce Snecma Ltd. is uniquely placed to access the advanced military propulsion expertise of the two parent companies, based on their proven track records of developing successful combat aircraft engines."

This unique access to the knowledge base, technology, infrastructure, supply chain and facilities of the two leading combat power system companies in Europe enables Rolls-Royce Snecma Ltd. to offer a range of power and propulsion solutions for the next generation of Combat Air Vehicle, whether based on derivatives of existing military powerplants or the development of novel power and propulsion concepts.

Notes to Editors:

1. Rolls-Royce is a world-leading provider of power systems and services for use on land, at sea and in the air, and has established a strong position in global markets - civil aerospace, defence aerospace, marine and energy.

2. As a result of this strategy, Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 4,000 marine customers, including 70 navies, and energy customers in more than 80 countries.

3. Annual underlying revenues were £11.3 billion in 2011, of which more than half came from the provision of services. The firm and announced order book stood at £62.2 billion at 31 December 2011, providing visibility of future levels of activity.

4. Rolls-Royce employs over 40,000 people in offices, manufacturing and service facilities in over 50 countries. Over 11,000 of these employees are engineers.

5. In 2011, Rolls-Royce invested £908 million on research and development, two thirds of which had the objective of further improving the environmental performance of its products, in particular reducing emissions.

6. Rolls-Royce supports a global network of 28 University Technology Centres, which connect the company's engineers with the forefront of scientific research.

7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.

8. Rolls-Royce Snecma Ltd was established in 2001 to provide programme management of technology acquisition, development, certification, production and in-service support for future combat power and propulsion systems. The joint venture company is designed to act as the prime contractor for future programmes, providing a single interface with customers and its parent companies Rolls-Royce plc and Snecma.

For further information, please contact:

Investors: Simon Goodson Director - Investor Relations Rolls-Royce plc Tel: +44 (0)20 7227 9237 simon.goodson@rolls-royce.com Media: Josh Rosenstock Director of External Communications Rolls-Royce plc Tel: +44 (0)20 7227 9163 josh.rosenstock@rolls-royce.com

www.Rolls-Royce.com

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