OREANDA-NEWS. 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 €1.6 billion, with net income of €60 million and sales of €627 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 ?14.6 billion in 2014, around half of which came from the provision of aftermarket services. The firm and announced order book stood at ?73.7 billion at the end of 2014.
  5. In 2014, Rolls-Royce invested ?1.2 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.