1. endend Rolls-Royce / Cooper Rolls 009503 PPT 10/03/99 Technology and business solutions seminar Budapest - 23rd April 1999

2. endend 009503/24 PPT10/03/99

3. endend Power solutions for air, sea and land Civil aerospace Airlines Corporate operators and regional airlines Aero repair and overhaul Civil aerospace Airlines Corporate operators and regional airlines Aero repair and overhaul 009503/01 PPT10/03/99 Defence Military aero engines Helicopters Marine power Defence Military aero engines Helicopters Marine power Energy Power generation Oil and gas Energy Power generation Oil and gas

4. endend Rolls-Royce plc statistics £4.3 billion net turnover ($7.0 billion) 42,300 employees 75% of sales achieved outside the United Kingdom 75% of sales achieved outside the United Kingdom £10.4 billion order book ($16.9 billion) £668 million research and development spend ($1.1 billion) £668 million research and development spend ($1.1 billion) Global presence 009503/02 PPT10/03/99

5. endend Rolls-Royce energy businesses Power generation market Supplying packaged gas turbine and diesel engines for turnkey power stations Power generation market Supplying packaged gas turbine and diesel engines for turnkey power stations Oil and gas market Supplying industrial gas turbine and diesel packages Oil and gas market Supplying industrial gas turbine and diesel packages Marine propulsion Supplying gas turbine and diesel engines for the civil and military marine markets Marine propulsion Supplying gas turbine and diesel engines for the civil and military marine markets

6. endend Gas turbine energy experience Pioneer in the development of aeroderivative gas turbines Pioneer in the development of aeroderivative gas turbines Over 4,700 aeroderivative gas turbines sold Equivalent of 45,000 MW installed power 107,000 million operating hours Over 500 customers in 70 countries and 36 navies worldwide Over 500 customers in 70 countries and 36 navies worldwide

7. endend Energy gas turbine products 0 10 20 30 40 50 60 Power (MW) Allison 501 Allison 601 RB211 Trent Avon

8. endend Power generation Products Aeroderivative gas turbines Diesels Capability Integrated power systems (up to 150MW output) Applications Simple cycle Combined cycle Cogeneration Products Aeroderivative gas turbines Diesels Capability Integrated power systems (up to 150MW output) Applications Simple cycle Combined cycle Cogeneration 009503/07 PPT10/03/99

9. endend Trent RB211 Allison 601 Series Allison 501 Series Allen 2000, 3000, 4000, 5000 Niigata engines Trent RB211 Allison 601 Series Allison 501 Series Allen 2000, 3000, 4000, 5000 Niigata engines 50MW 31MW 6-8MW 3-7MW 1-10MW 5 to 15MW 50MW 31MW 6-8MW 3-7MW 1-10MW 5 to 15MW World leading performance, now in service and increasing number of orders Limited but growing position in this market Launched in 1996, competitive product Large installed fleet worldwide Own design engines Licence agreement extends range World leading performance, now in service and increasing number of orders Limited but growing position in this market Launched in 1996, competitive product Large installed fleet worldwide Own design engines Licence agreement extends range Gas turbines Diesels Current products - Power generation market 009503/30 PPT 10/03/99

10. endend Oil and gas 009503/08 PPT10/03/99 Products Gas turbine packages Diesel packages Products Gas turbine packages Diesel packages Capability Compression, pumping and power generation Complete packaged systems through Cooper Rolls Capability Compression, pumping and power generation Complete packaged systems through Cooper Rolls Applications Onshore and offshore Natural gas compression Oil and water pumping Power generation Applications Onshore and offshore Natural gas compression Oil and water pumping Power generation

11. endend Gas turbines Diesels Current products - Oil & gas market Trent RB211 Avon 501 Series 601 Series Allen 4000 Trent RB211 Avon 501 Series 601 Series Allen 4000 70,000 shp 42,600 shp 20,000 shp 3,000-6,000 shp 9,000-11,000 shp 2,500-4,000 shp 70,000 shp 42,600 shp 20,000 shp 3,000-6,000 shp 9,000-11,000 shp 2,500-4,000 shp Attracting considerable interest, good prospects Standard and DLE versions both selling well Limited opportunities Well established workhorse Attracting considerable interest Crude burning capabilities, large fleet on pipelines Attracting considerable interest, good prospects Standard and DLE versions both selling well Limited opportunities Well established workhorse Attracting considerable interest Crude burning capabilities, large fleet on pipelines 009503/27 PPT10/03/99

12. endend Marine 009503/29 PPT10/03/99 Products Gas turbines Diesel packages Gearboxes Products Gas turbines Diesel packages Gearboxes Capability Integrated propulsion systems Capability Integrated propulsion systems Applications Naval vessels High speed craft Cruise ships Applications Naval vessels High speed craft Cruise ships

13. endend Current products - Marine market Spey SM1C WR-21 Allison 501 & 601Series AG9140 generating set Allen 2000, Allen 5000 Pielstick PC2.6 & PA6 Spey SM1C WR-21 Allison 501 & 601Series AG9140 generating set Allen 2000, Allen 5000 Pielstick PC2.6 & PA6 19.5MW 25MW 4-8MW 3MW 1.8-10MW up to 11MW 19.5MW 25MW 4-8MW 3MW 1.8-10MW up to 11MW In service with UK, Dutch and Japanese Navies Next generation propulsion system Used for Naval and fast ferry applications In service with US Navy Commercial applications Naval applications In service with UK, Dutch and Japanese Navies Next generation propulsion system Used for Naval and fast ferry applications In service with US Navy Commercial applications Naval applications 009503/28 PPT10/03/99 Gas turbines Diesels

14. endend 009503/20 PPT10/03/99 Environmental benefits Continual investment in new technologies to improve fuel consumption, reduce emissions and reduce noise levels Award winning Dry Low Emissions (DLE) technology applied to complete gas turbine product range DLE technologies reduce NOx and CO emissions with no penalties in performance Digital electronic fuel injection system on the Allen 5000 diesel engine ensures individual cylinder burn optimisation Continual investment in new technologies to improve fuel consumption, reduce emissions and reduce noise levels Award winning Dry Low Emissions (DLE) technology applied to complete gas turbine product range DLE technologies reduce NOx and CO emissions with no penalties in performance Digital electronic fuel injection system on the Allen 5000 diesel engine ensures individual cylinder burn optimisation

15. endend 009503/21 PPT10/03/99 Diesel energy experience 90 years experience in diesel engine and power project design 90 years experience in diesel engine and power project design 200,000 hours experience on residual fuels Diverse sphere of operation Over 2 million hours operating on crude oil in India alone Over 2 million hours operating on crude oil in India alone 150,000 hours generating island power in the Caribbean 150,000 hours generating island power in the Caribbean

16. endend Diesel energy products Power (MW) 0 2 4 6 8 10 12 14 16 Allen 2000 series Allen 3000 series Allen 4000 series Allen 5000 series Niigata 32 * Niigata 41 * * Under licence Niigata 46 * 009503/22 PPT10/03/99

17. endend 009503 PPT 10/03/99 End of Introduction Please press “esc” key to return to main menu