RYCEY Rolls Royce Holdings PLC (PK)

TIDMRR.

RNS Number : 5022Z

Rolls-Royce Holdings plc

21 September 2020

21 September 2020

STATEMENT RE: MEDIA SPECULATION

Rolls-Royce notes the continued media speculation regarding the possibility of the Group undertaking a fund raising.

We continue to review all funding options to enhance balance sheet resilience and strength. Amongst other options, we are evaluating the merits of raising equity of up to GBP2.5bn, through a variety of structures including a rights issue and potentially other forms of equity issuance. Our review also includes new debt issuance.

No final decisions have been taken as to whether or when to proceed with any of these options or as to the precise amount that may be raised.

As we said on 27 August 2020, following rapid management actions to reduce costs and secure additional liquidity, we started the second half of 2020 with liquidity of GBP6.1bn (comprising GBP4.2bn cash at end June and a GBP1.9bn undrawn revolving credit facility). In addition, we finalised a GBP2bn undrawn term loan, partly backed by the UK Export Finance, in August. We have also launched a major restructuring of our Group, in particular our Civil Aerospace business, with forecast annualised pre-tax savings of over GBP1.3bn by the end of 2022. As previously announced, we have also already identified a number of potential disposals that are expected to generate proceeds of more than GBP2bn over the next 18 months, including ITP Aero.

A further announcement will be made if and when appropriate.

This announcement has been determined to contain inside information.

About Rolls-Royce Holdings plc

1. Rolls-Royce pioneers cutting-edge technologies that deliver clean, safe and competitive solutions to meet our planet's vital power needs.

2. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 70 navies, and more than 5,000 power and nuclear customers.

3. Annual underlying revenue was GBP15.45 billion in 2019, around half of which came from the provision of aftermarket services.

4. In 2019, Rolls-Royce invested GBP1.46 billion on research and development. We also support a global network of 29 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.

   5.   Rolls-Royce Holdings plc LEI: 213800EC7997ZBLZJH69 

For further information, please contact:

Media

Richard Wray

Director of External Communications & Brand, Rolls-Royce plc

Tel +44 (0) 7810 850055

Richard.Wray@Rolls-Royce.com

Investors

Isabel Green

Head of Investor Relations, Rolls-Royce plc

Tel +44 (0) 7880 160976

Isabel.Green@Rolls-Royce.com

www.Rolls-Royce.com

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September 21, 2020 03:41 ET (07:41 GMT)

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