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Chief Executive’s review Sir John Rose
In responding to the short-term challenges we are currently facing and in developing the business for the longer term, our people are our strongest asset.
Rolls-Royce is a power systems company, powered by the knowledge, experience and imagination of all our employees across the world. Our advantages are dependent on the contributions they make and in this increasingly challenging period I am particularly indebted to all of our people for everything they do in support of the business.
The Group expects that in 2009 its global markets will be affected by reducing demand and the impact of financing constraints. We will continue to manage the consequences of airframe programme slippages.
Cash generation will be affected by the reduction in new orders and associated deposit intake and the impact on inventory of any delays or cancellations. There are also likely to be requests for customer and supplier financial support which will be considered by the Group on a case by case basis. In the current environment it is expected that in 2009 despite a cash outflow, the average net cash balance of the Group will increase. The Group’s current view is that underlying revenues will continue to grow and underlying profits for the year will be broadly similar to those achieved in 2008.
Sir John Rose
February 11, 2009