Rolls-Royce Holdings plc Rolls-Royce strengthens ITP joint venture (6384G)
March 05 2015 - 5:00AM
UK Regulatory
TIDMRR.
RNS Number : 6384G
Rolls-Royce Holdings plc
05 March 2015
5 March 2015
ROLLS-ROYCE STRENGTHENS ITP JOINT VENTURE
-- ITP to supply turbines for future Rolls-Royce engines
-- Revised shareholder agreement reflects long-term partnership
Rolls-Royce announces that it has strengthened its long-term
partnership with Sener Grupo de Ingenieria SA (Sener) in the
Industria de Turbo Propulsores SA (ITP) joint venture. ITP will
supply Rolls-Royce with turbines for future civil large engines in
addition to its existing range of products supported by a revised
shareholder agreement.
ITP is a joint venture between Rolls-Royce (46.9%) and a
subsidiary of Sener (53.1%). The shareholdings of Rolls-Royce and
Sener in ITP remain unchanged. Rolls-Royce and Sener have
established a strong working relationship over many years and
created the ITP joint venture in 1989. Today's revised agreement
marks another milestone in that long-standing partnership.
ITP provides high technology products and services to the
aircraft and industrial engine market throughout the entire product
life cycle. Its activities cover the design, research, development
and manufacturing, as well as the assembly and testing, of aircraft
engines. ITP participates on all of Rolls-Royce's existing Trent
programmes through risk and revenue sharing agreements.
The revised shareholder agreement ensures security of supply of
turbines and the continued access by Rolls-Royce to relevant ITP
engineering and R&D capabilities. The CFO of ITP is jointly
appointed by Sener and Rolls-Royce, while Sener has the right to
appoint the CEO.
ITP's gross assets as at 31 December 2013 were EUR1.6 billion,
with net income of EUR60 million and sales of EUR627 million in the
year ended 31 December 2013. ITP employs over 3,000 professionals
based in 18 operational centres in Spain, United Kingdom, Malta,
US, Mexico, China and India. ITP is led by its CEO, Ignacio Mataix
Entero.
Rolls-Royce accounts for the ITP joint venture in its 2014
Annual Report, consistent with IFRS 12. As part of the original
shareholder agreement signed in 2003, Sener has a put option for
its shares in ITP to Rolls-Royce. The option is valued by using an
agreed formula and valuation mechanism that represents fair market
value. The put option can be exercised during a certain period
every year.
About Rolls-Royce Holdings plc
1. Rolls-Royce's vision is to create better power for a changing
world via two main business divisions, Aerospace and Land &
Sea. These business divisions address markets with two strong
technology platforms, gas turbines and reciprocating engines.
Aerospace comprises Civil Aerospace and Defence Aerospace. Land
& Sea comprises Marine, Nuclear and Power Systems.
2. Rolls-Royce has customers in more than 120 countries,
comprising more than 380 airlines and leasing customers, 160 armed
forces, 4,000 marine customers including 70 navies, and more than
5,000 power and nuclear customers.
3. Our business is focused on the 4Cs:
-- Customer - placing the customer at the heart of our business
-- Concentration - deciding where to grow and where not to
-- Cost - continually looking to increase efficiency
-- Cash - improving financial performance.
4. Annual underlying revenue was GBP14.6 billion in 2014, around
half of which came from the provision of aftermarket services. The
firm and announced order book stood at GBP73.7 billion at the end
of 2014.
5. In 2014, Rolls-Royce invested GBP1.2 billion on research and
development. We also support a global network of 31 University
Technology Centres, which position Rolls-Royce engineers at the
forefront of scientific research.
6. Rolls-Royce employs over 54,000 people in more than 50
countries. Over 15,500 of these are engineers.
7. The Group has a strong commitment to apprentice and graduate
recruitment and to further developing employee skills. In 2014 we
employed 354 graduates and 357 apprentices through our worldwide
training programmes. Globally we have over 1,000 Rolls-Royce STEM
ambassadors who are actively involved in education programmes and
activities; we have set ourselves a target to reach 6 million
people through our STEM outreach activities by 2020.
For further information, please contact:
Investors: Media:
Jilinda Crowley Richard Wray
Acting Director - Investor Relations Director of External Communications
Rolls-Royce plc Rolls-Royce plc
Tel: +44 (0)20 7227 9282 Tel: +44 (0)20 7227 9163
jilinda.crowley@rolls-royce.com richard.wray@rolls-royce.com
This information is provided by RNS
The company news service from the London Stock Exchange
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