Rolls-Royce Helicopter Overview and 10-year Forecast 2009-2018

2009 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc. This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies.

Introduction
This is the 10-year turbine rotorcraft market forecast developed by Rolls-Royce
Covers Civil and Military new production turbine helicopters

Based on:
Civil customer new requirement and fleet replacement forecasts Military new requirement and fleet replacement forecasts Government acquisition plans OEM production plans Customer input

Total Rotorcraft Forecast 2009 to 2018 Summary

Rolls-Royce predicts long term resilience in Rotorcraft market Over the next 10 years, R-R forecasts 15,800 turbine rotorcraft deliveries, worth $131 billion
9,600 civil rotorcraft, worth $27 billion 6,200 military rotorcraft, worth $ 104 billion

Over the next 10 years, R-R forecasts 25,000 total OEM rotorcraft engine deliveries, worth $12 billion

Turbine Powered Rotorcraft Forecast 2009-2018:

Turbine Powered Rotorcraft Forecast
15,800 Aircraft

2000 1800 1600 1400 1200 1000 800 600 400 200 0

Annual Production (units)

Civil Defense

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Differences in 2009
Very light turbine delivery profile New market entries
Heli Brasil Hafei Aviation

Macroeconomic factors
Incorporates recent program modifications and changes

2008 vs. 2009 Rotorcraft Deliveries

2008 vs 2009 10-Year Forecast
1900 1800 1700 1600 1500 1400 1300 1200 1100 1000
Rotorcraft Units

09 Forecast 08 Forecast

2007

2009

2011

2013

2015

2017

Rotorcraft Turbine Engine Sales Forecast by Units

(10 years)

Engine Sales Units

8,000 Turbine Engine Sales (units) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
Singles
~2 Ton

Civil Defense

Light Twins Intermediate

~3.5 Ton ~5 Ton

Medium
~10 Ton

Heavy
> 10 Ton

Rotorcraft Turbine Engine Sales Forecast by Value

(10 years)

Rotorcraft Engine Sales Value

4500 4000 3500 Value (m$) 3000 2500 2000 1500 1000 500 0
Singles
~2 Ton

Civil Defense

Light Twins Intermediate

~3.5 Ton ~5 Ton

Medium
~10 Ton

Heavy
> 10 Ton

Civil Rotorcraft Forecast

Civil Turbine Rotorcraft Market

Single-engine rotorcraft to continue to lead market in unit volume
Eurocopter retains leading position for the next 1-3 years Bell (206L, 407) remain in high demand Robinson Helicopter has the potential to challenge entry level segment leaders in the next 35 years with new turbine entry Underlying international demand for police, law enforcement, corporate, EMS and utility helicopters

Established twins being replaced by newer twin engine models

Eurocopter, AgustaWestland, Sikorsky and Bell introducing new products AW139 current market leader in the intermediate segment

Market Drivers:
Enhanced value proposition and performance through application of new technology Environmental footprint Fleet demographics

Civil Turbine Rotorcraft Overview

Turbine rotorcraft deliveries
New entry level models will expand the singles segment Emerging markets (Asia, Africa, India) long-term growth consistent with economic development

11

Energy, police, homeland security and other segments refreshing fleets with newer aircraft New technology driving upgrade opportunities

Civil Turbine Rotorcraft Forecast

9,600 Civil rotorcraft deliveries
Singles (64%) and light twins (17%) lead the market by units

12

Airframe value $27 billion

Intermediates (35%) and singles (26%) lead the market in value

Engine OEM value $4.0 billion

Singles (36%) and intermediates (28%) lead the market in value Aftermarket thru-life value approximately 3-4 times OEM value

Excludes military surplus rotorcraft deliveries and aircraft upgrades Includes paramilitary market

Civil Rotorcraft Sales by Segmentation

Civil Sales Segmentation
1200 Rotorcraft Sales (units) 1000 800 600 400 200 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ACTUALS

13

Heavy Medium Intermediate Light Twins Singles

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Defense Rotorcraft Forecast

Military Turbine Rotorcraft Market

Global Military Engagements
Op Tempo is 4X peacetime rate Harsh operating environments sand, salt, brown-outs, hot and high

15

Humanitarian Relief Efforts

Hurricanes, Floods, Tsunami, Earthquakes strain nations resources

Fleet Demographics
Average age increasing with many Vietnam era helicopters still in use

Emergence of new heavy-lift requirements

Developing operational concepts require very large VTOL capabilities

Importance of hot & high operations

6K, 95F the new standard

Introduction of new technology

Lower IR signature Digital Cockpit Emerging VTOL UAV programs HUMS, Conditioned Based Maintenance (CBM), intelligent diagnostics

Military Turbine Rotorcraft Overview

Representative new and ongoing programs driving production
NH90 Tiger V-22 Osprey CH-53K UH-72A Lakota US101 Future Lynx T-129 (Turkey Attack) KAHP (Korea Attack) UH-60M Blackhawk MQ-8B Firescout CH-47 Chinook

16

And more announcements are imminent

India USAF CSAR-X Others

Military New Build Turbine Rotorcraft Forecast

6,200 Military rotorcraft deliveries
Mediums (47%) and heavy (16%) lead the market by units

17

Airframe value $104 billion

Mediums (49%) and Heavy (38%) lead the market in value

Engine value $8 billion

Mediums (46%) and Heavy (35%) lead the market in value

Military OEM Rotorcraft Sales - Segmentation

Defense Sales Segmentation
800 R otorcraft Sales (units) 700 600 500 400 300 200 100 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

18

Heavy Medium Intermediate Light Twins Singles

Conclusion
Nearly 16,000 new rotorcraft over 10 year period $12 billion turbine engine market Underlying long-term demand still in place
Global markets show continued demand despite near-term softness Fleet demographics driving replacements

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Technology driving new applications

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Appendix

Fleet Age Civil

Age Profile of Civil Fleet
60

21

50

40

Age in Years

30

20

10

0 0 2000 4000 6000 8000 10000 12000 14000 16000 18000

Size of the Fleet Oldest to Newest

Fleet Age - Military

Age Profile of Military Fleet
60

22

50

40 Age in Years

30

20

10

0 0 2000 4000 6000 8000 10000 12000 14000 16000 18000

Size of fleet oldest to newest

Class Breakdown - Heavy

Turbine Heavy Helicopter Market Forecast
160

23

140

120

Annual Production (units)

100

80

60

40

20

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Class Breakdown - Medium

Turbine Mediums Helicopter Market Forecast
400

24

350

300

Annual Production (units)

250

200

150

100

50

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

25

Class Breakdown - Intermediates

Turbine Intermediates Helicopter Market Forecast
300

250

Annual Production (units)

200

150

100

50

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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Class Breakdown - Light Twins

Turbine Light Twins Helicopter Market Forecast
300

250

Annual Production (units)

200

150

100

50

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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Class Breakdown - Singles

Turbine Singles Helicopter Market Forecast
900

800

700

Annual Production (units)

600

500

400

300

200

100

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Rolls-Royce Contacts
Matt Haugk Director; Marketing & Strategy (317) 230-3883 Email: matthew.p.haugk@rolls-royce.com

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Tristan Scheffer Customer Business Graduate (317) 230-5527 Email: tristan.scheffer@rolls-royce.com