Our business model and strategy

Our business model

Rolls-Royce is a global company providing power solutions for customers in civil and defence aerospace, marine and energy markets. The Group has an ongoing commitment to investing in research and development (R&D) which provides the technologies and intellectual property that allow us to compete on a global basis and creates high barriers for entry to our markets.

Two-thirds of our annual R&D funding is aimed at improving the environmental performance of our products. We maximise our R&D investment through our approach of ‘invest once use many times’ in products across the four major segments. Our manufacturing operations and supply bases are integrated and global.

Our strategy

  • Address four global markets

    A leading producer of mission-critical, integrated power systems and services for use in civil and defence aerospace, marine and energy segments.

    Pie chart illustrating 2011 revenue showing civil aerospace as highest, then defence aerospace, marine then energy as lowest
  • Invest in technology infrastructure and capability

    We invest close to £1 billion annually in R&D and during 2011 we invested £467 million in capital projects to grow our global capability and productivity.

    Technology is developed via our global research network
  • Develop a competitive portfolio of products and services

    We have 40 major engineering programmes under management. We continue to introduce major new products, including the Trent 1000 in 2011. Our key projects will help define the power systems markets for many years ahead.

    Trent 1000 on the Boeing 78z
  • Grow market share and our installed product base

    Across the Group the growing installed product base and integrated systems will generate attractive returns for many decades.

    Offshore support vessels are designed by Rolls Royce
  • Add value for customers through the provision of product-related services

    Over half our revenues come from services. We seek to develop our customer relationships, through long-term service contracts where we can grow strong business collaboration.

    Engines are inspected and images sent in real time for analysis

Chairman’s statement

Rolls-Royce has a highly skilled and motivated team – proud of its heritage and ambitious for its future...

Chief Executive’s statement

Our strategy has stood the test of time and has proved itself in battle...

Financial highlights

  • £62.2bn

    Order book – firm and announced +5% on 2010

  • 17.50p

    Payments to shareholders +9% on 2010