Consolidated balance sheet At 31 December 2020 31 December 2020 Em 31 December 2019 Em Notes 9 10 11 13 13 21 5 23 ASSETS Intangible assets Property, plant and equipment Right-of-use assets Investments - joint ventures and associates Investments - other Other financial assets Deferred tax assets Post-retirement scheme surpluses Non-current assets Inventories Trade receivables and other assets Contract assets Taxation recoverable Other financial assets Short-term investments Cash and cash equivalents Current assets Assets held for sale TOTAL ASSETS 5,145 4,515 1,405 394 19 687 1,826 907 14,898 3,690 5,455 1,510 117 107 14 5,442 4,803 2,009 402 14 467 1,887 1,170 16,194 4,320 5.065 2,095 39 86 6 4,443 16,054 18 32,266 15 16 21 21 - 17 3,452 14,331 28 288 29,517 18 21 20 16 22 18 LIABILITIES Borrowings and lease liabilities Other financial liabilities Trade payables and other liabilities Contract liabilities Current tax liabilities Provisions for liabilities and charges Current liabilities Borrowings and lease liabilities Other financial liabilities Trade payables and other liabilities Contract liabilities Deferred tax liabilities Provisions for liabilities and charges Post-retirement scheme deficits Non-current liabilities Liabilities associated with assets held for sale TOTAL LIABILITIES 21 20 (1,272) (608) (6,653) (4,187) (154) (826) (13,700) (6,058) (3,046) (1,922) (6,245) (494) (1,119) (1,580) (20,464) (228) (34,392) (775) (493) (8,450) (4.228) (172) (858) (14,976) (4,910) (3,094) (2,071) (6.612) (618) (1,946) (1,378) (20,629) (15) (35,620) 16 5 22 23 28 NET LIABILITIES (4,875) (3,354) 24 EQUITY Called-up share capital Share premium Capital redemption reserve Cash flow hedging reserve Merger reserve Translation reserve Accumulated losses Equity attributable to ordinary shareholders Non-controlling interests TOTAL EQUITY 1,674 1,012 162 (94) 650 524 (8,825) (4,897) 22 (4,875) 386 319 159 (96) 650 397 (5,191) (3,376) 22 (3,354) The Financial Statements on pages 106 to 176 were approved by the Board on 11 March 2021 and signed on its behalf by: Warren East Stephen Daintith Chief Executive Chief Financial Officer Consolidated income statement For the year ended 31 December 2020 Notes 2 Revenue Cost of sales 12 Gross (loss)/profit Commercial and administrative costs Research and development costs Share of results of joint ventures and associates Operating loss (Loss)/gain arising on acquisition and disposal of businesses 3 Loss before financing and taxation 2020 m 11,824 (12,034) (210) (808) (1,254) 191 (2,081) (14) (2,095) 2019 Em 16,587 (15,645) 942 (1,128) (770) 104 (852) 139 (713) 3 13 28 2 4 Financing income Financing costs Net financing costs 4 67 (882) (815) 252 (430) (178) Loss before taxation 5 Taxation Loss for the year 5 (2,910) (259) (3,169) (891) (420) (1,311) Attributable to: Ordinary shareholders Non-controlling interests Loss for the year Other comprehensive expense Total comprehensive expense for the year (3,170) 1 (3,169) (265) (3,434) (1,315) 4 (1,311) (1,013) (2,324) 6 Loss per ordinary share attributable to ordinary shareholders: Basic 6 Diluted 6 Underlying earnings per ordinary share are shown in note 6 (52.95)p (52.95)p (23.70p (23.70)p 6 21 Payments to ordinary shareholders in respect of the year: Pence per share 6 Total 1.6p 87 Underlying (loss)/profit before taxation 5 2 (3,958) 583 TASKC Calculate Gearing and Debt ratios for 2020 and 2019 Rolls Royce Holdings Plc. Comment on the ratios you have calculated and the changes over the two years. Ratio Formula (1 mark) Calculations (3 marks) 2020 final answer (1mark) Total Marks 2019 final answer (1mark) Gearing ratio 2020 (5 marks) 2019 (5 marks) Debt ratio 2020 (5 marks) 2019 (5 marks) Up to 2.5 marks for relevant comment explaining each ratio and changes between the two years. Maximum of 5 Marks