Consolidated income statement For the year ended 31 December 2020 Notes 2 Revenue Cost of sales 2 Gross (loss/profit Commercial and administrative costs Research and development costs Share of results of joint ventures and associates Operating loss (Lossgain arising on acquisition and disposal of businesses Loss before financing and taxation 2020 Em 11,824 (12,034) (210) (808) (1.254) 191 (2,081) (14) (2,095) 2019 Em 16,587 (15,645) 942 (1,128) (270) 104 (852) 139 (713) 3 15 28 2 4 Financing income Financing costs Net financing costs 67 (882) 4 252 (430) (178) (815) Loss before taxation Taxation Loss for the year 5 (2,910) (259) (3,169) (891) (420) (1,311) (1.315) Attributable to: Ordinary shareholders Non-controlling interests Loss for the year Other comprehensive expense Total comprehensive expense for the year Loss per ordinary share attributable to ordinary shareholders: Diluted Underlying earnings per ordinary share are shown in note 6 (3,170) 1 (3,169) (265) (5,434) (1,311) (1,013) 12,324) Basic 6 (52.95) (52.95)p (23.70p (23.7010 21 Payments to ordinary shareholders in respect of the year: Pence per share Total 1.6p 87 2 Underlying loss)/profit before taxation (3,958) 583 Included within cost of sales.commercial and administrative conts and research and development com a exceptional em relating to ingements and write-offs wings are the financial and operational impact of COVID-19 plus the market det, men and provinsed to the fundamental restructuring activity announced on 20 May 2020 to run and este the Group Tuve who heen recorded and reflecting the impact of COMID-19 and the work the Group has performed to reduce et AG levels and improve the tables the 2000 provon honored the receptorch mated to the Tet 1000 and BSO Clerce programmes and were included with confcommercial and administraveco. Further detalle can be found trots 2.0 and 2 doon Sonry 2020. Tegner i Home Com Sinne et on May 2020 and Enter disposed of on 6 May 2000 Graus Onetes are on Bay 2000 KG SA w do y 2000 and Server yente wat redan 7 December 2020. sales procesa proprio dal ve busted during the Comercio Marine de dolari 2011 and Rolls Royce Power Development Limited was dispoved or on 15 April 2013. Further details can ta found in note 2 Included within Financing costs are all value changes an derivative cont. Further details can be found in note 24 and 21 Lonprofit before taxation dised on story and underlying bet. Further details can be found in rete 2 The comparative figures for carrega per share and payments to shareholder per shore have been attend to reflect the tonelement of the rights reser note 6. As a resto the COVO-10 pandemic the Directors cancelled the proposed final payment to shareholders.Apd person Consolidated balance sheet At 31 December 2020 31 December 2020 Em 31 December 2019 Notes 5.442 4.803 2.009 9 10 11 15 13 21 402 5 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 25 14 15 56 14 467 1,887 1,170 16,194 4,320 5,065 2.095 39 86 6 4,443 16.054 18 32,266 21 21 17 3,452 14,331 288 29,517 28 LIABILITIES Borrowings and lease liabilities Other financial liabilities Trade payables and other liabilities Contract abilities 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 CNCONG (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) 14,910) (3,094) (2,071) (6.612) (618) 11.946) (1.378) (20,629) (15) (35,620) 28 (4,875) (3.354) 24 NET LIABILITIES EQUITY Called-up share capital Share premium Capital redemption reserve Cash flow hedging reserve Merger reserve Translation reserve 1,674 1,012 162 (94) 650 524 386 319 159 (96) 650 397 24 EQUITY Called-up share capital 1,674 Share premium 1,012 Capital redemption reserve 162 Cash flow hedging reserve (94) Merger reserve 650 Translation reserve 524 Accumulated losses (8,825) Equity attributable to ordinary shareholders 14.897) Non-controlling interests 22 TOTAL EQUITY (4,875) 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 386 319 159 (96) 650 397 (5.191) (3.376) 22 (3,354 108 BOLLS ONCE SOLD-UL REPORT 2020 2. Calculate the Cash Conversion Cycle for Rolls Royce Holdings Plc for the years 2020 and 2019 (30 marks) 3. Comment on the ratios you have calculated and the changes over the two years. (Smarks) Consolidated income statement For the year ended 31 December 2020 Notes 2 Revenue Cost of sales 2 Gross (loss/profit Commercial and administrative costs Research and development costs Share of results of joint ventures and associates Operating loss (Lossgain arising on acquisition and disposal of businesses Loss before financing and taxation 2020 Em 11,824 (12,034) (210) (808) (1.254) 191 (2,081) (14) (2,095) 2019 Em 16,587 (15,645) 942 (1,128) (270) 104 (852) 139 (713) 3 15 28 2 4 Financing income Financing costs Net financing costs 67 (882) 4 252 (430) (178) (815) Loss before taxation Taxation Loss for the year 5 (2,910) (259) (3,169) (891) (420) (1,311) (1.315) Attributable to: Ordinary shareholders Non-controlling interests Loss for the year Other comprehensive expense Total comprehensive expense for the year Loss per ordinary share attributable to ordinary shareholders: Diluted Underlying earnings per ordinary share are shown in note 6 (3,170) 1 (3,169) (265) (5,434) (1,311) (1,013) 12,324) Basic 6 (52.95) (52.95)p (23.70p (23.7010 21 Payments to ordinary shareholders in respect of the year: Pence per share Total 1.6p 87 2 Underlying loss)/profit before taxation (3,958) 583 Included within cost of sales.commercial and administrative conts and research and development com a exceptional em relating to ingements and write-offs wings are the financial and operational impact of COVID-19 plus the market det, men and provinsed to the fundamental restructuring activity announced on 20 May 2020 to run and este the Group Tuve who heen recorded and reflecting the impact of COMID-19 and the work the Group has performed to reduce et AG levels and improve the tables the 2000 provon honored the receptorch mated to the Tet 1000 and BSO Clerce programmes and were included with confcommercial and administraveco. Further detalle can be found trots 2.0 and 2 doon Sonry 2020. Tegner i Home Com Sinne et on May 2020 and Enter disposed of on 6 May 2000 Graus Onetes are on Bay 2000 KG SA w do y 2000 and Server yente wat redan 7 December 2020. sales procesa proprio dal ve busted during the Comercio Marine de dolari 2011 and Rolls Royce Power Development Limited was dispoved or on 15 April 2013. Further details can ta found in note 2 Included within Financing costs are all value changes an derivative cont. Further details can be found in note 24 and 21 Lonprofit before taxation dised on story and underlying bet. Further details can be found in rete 2 The comparative figures for carrega per share and payments to shareholder per shore have been attend to reflect the tonelement of the rights reser note 6. As a resto the COVO-10 pandemic the Directors cancelled the proposed final payment to shareholders.Apd person Consolidated balance sheet At 31 December 2020 31 December 2020 Em 31 December 2019 Notes 5.442 4.803 2.009 9 10 11 15 13 21 402 5 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 25 14 15 56 14 467 1,887 1,170 16,194 4,320 5,065 2.095 39 86 6 4,443 16.054 18 32,266 21 21 17 3,452 14,331 288 29,517 28 LIABILITIES Borrowings and lease liabilities Other financial liabilities Trade payables and other liabilities Contract abilities 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 CNCONG (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) 14,910) (3,094) (2,071) (6.612) (618) 11.946) (1.378) (20,629) (15) (35,620) 28 (4,875) (3.354) 24 NET LIABILITIES EQUITY Called-up share capital Share premium Capital redemption reserve Cash flow hedging reserve Merger reserve Translation reserve 1,674 1,012 162 (94) 650 524 386 319 159 (96) 650 397 24 EQUITY Called-up share capital 1,674 Share premium 1,012 Capital redemption reserve 162 Cash flow hedging reserve (94) Merger reserve 650 Translation reserve 524 Accumulated losses (8,825) Equity attributable to ordinary shareholders 14.897) Non-controlling interests 22 TOTAL EQUITY (4,875) 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 386 319 159 (96) 650 397 (5.191) (3.376) 22 (3,354 108 BOLLS ONCE SOLD-UL REPORT 2020 2. Calculate the Cash Conversion Cycle for Rolls Royce Holdings Plc for the years 2020 and 2019 (30 marks) 3. Comment on the ratios you have calculated and the changes over the two years. (Smarks)