©2012 Rolls-Royce plcThe 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.

Horizon 2020Industrial Technologies as an Engine of Growth

Ric ParkerRic ParkerDirector of Research & Technology 19 June 2012

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Four global markets – Sales €13.6bn*

R&D Expenditure €1.1bn

Defence Aerospace

€2.6bn

Energy

€1.4bn

Marine

€2.8bn

Civil Aerospace

€6.7bn

*2011 Preliminary results€1.2 = £1

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Agenda

The success of the Framework programme

Key Emerging Technologies

Horizon 2020

Summary

3

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Agenda

The success of the Framework programme

Key Emerging Technologies

Horizon 2020

Summary

4

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700BudgetM€)

750 23002457135

FP’s : Annual aeronautical budgets

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Full Scale GroundOr Flying

Demonstrator

Large Scale RigDemonstrators - cross

Technology

Technology Development

Projects

New Aircraft & Flight Tests

TRL 4-6

TRL 3-5

TRL 2-4

Level 1

Level 2

Level 3

Level 3+

Funding

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Next Generation Technology Demonstrators

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8Technology Validation

ANTLE – EU and DTI Funded Technology Validation Programme

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9Towards the More Electric EnginePOA Project

Electric Actuators

Electric Fuel Metering Unit

Electric Oil Pump & Scavenge System

HP Starter Generator

Fan Shaft Generator

Active Magnetic Bearing

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Clean Sky JTI

The Members of Clean Sky represent 86 organisations in 16 countries

Including:54 Companies15 Research Centres 17 Universities

€1.6 Billion; European Joint Undertaking

SMART fixed-wing aircraftGreen regional aircraft

Green rotorcraft

Eco designSystems for green operation

Sustainable and green engines

Technology evaluator

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Clean Sky JTISustainable and Green Engines

Pusher Counter-Rotating Open Rotor

Advanced Large 3-shaft Turbofan

Low-NOxFlyingDemonstrator

Advanced Turboshaft

Advanced Geared Turbofan

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Progress towards environmental targets

Trent 1000 is 12% more fuel efficient than Trent 800

More challenging targets set by Flightpath 2050

(Advisory Council for Aviation Research & Innovation in Europe)

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Flightpath 2050 Goals to take ACARE* beyond 2020

*Advisory Council for Aviation Research in Europe

By 2050 compared to year 2000 datum

75% reduction in CO2 per passenger kilometre

90% reduction in NOx emissions

65% reduction in noise

Strategic Research & Innovation Agenda – goals:

Meeting Societal and Market Needs

Maintaining and Extending Industrial Leadership

Protecting the Environment and the Energy Supply

Ensuring Safety and Security

Prioritising Research, Testing Capabilities & Education

Airframe Engine ATM & Operations

Requires Improvement in all areas

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Agenda

The success of the Framework programme

Key Emerging Technologies

Horizon 2020

Summary

14

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Assess the competitive situation of the relevant technologies in the EU with a particular focus on industrial deployment and their contribution to address major societal challenges

Analyse the available public and private R&D and innovation capacities for KETs in the EU

Propose specific policy recommendations for a more effective industrial deployment of KETs in the EU

Objective of HLG

Five KETs plus

one cross-cutting KET

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Three proposals for Europe to stay in the race:1. A single and integrated approach of KETs2. A three pillars bridge to cross over the valley of death3. Successful framework conditions to build the bridge

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Agenda

The success of the Framework programme

Key Emerging Technologies

Horizon 2020

Summary

17

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Horizon 2020 - Objective and rationale• Acknowledge crucial role of private sector in bringing

innovation to the market• Aims to make Europe a more attractive location for

businesses to invest in R&D and innovation• Range of activities in which businesses set the agenda• Strong focus on addressing market failures:

– Insufficent strategic investment in key technologies underpinning innovation across a wide range of sectors

– Insufficient access to risk capital to set up new businesses and allow them to grow

– Potential contribution to growth of SMEs not fully exploited

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Leadership in enabling and industrial technologies• Maintain and build global leadership in enabling and key

emerging technologies• Underpin innovation across a range of sectors• Activities are technology-driven and range from research

all the way up to demonstration and piloting• Both agendra-driven activities and more open areas• Integration in solutions for societal challenges will be

supported together with the societal challenges (e.g. through cross-cutting actions)

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Leadership in industrial technologies

• Key Enabling Technologies as a major component• This includes:

– Micro- and nano-electronics– Photonics– Nanotechnology– Advanced materials– Biotechnology– Advanced manufacturing systems

• Lay basis for competitive advantages across a range of sectors

• Important to exploit synergies and complementaries

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Smart, green and integrated transport

• Objective: achieve a transport system that is resource-efficient, environmentally-friendly, safe and seamless

• Specific activities: resource efficient transport that respects the environment; better mobility, less congestion, more safety and security; global leadership for the European transport industry; socio-economic research and forward looking activities for policy making

• Proposed funding: €7billion

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Long-term consistent technology strategy

Vision 10 Next generation

Technology demonstration

Vision 20 Future generation

Emerging technologies

Vision 5 Near term products

Off the shelf technologies

In-service upgrades

VISION

EIS 2012 2016 2021 2031

Vision 10 technologiesLightweight composite

fan systemAdvanced shroudless

HPT with rub-in CMC liner

Advanced sealing and externals

Lightweight TiAl LPT

Lightweight, blisked high-efficiency compressors

Low-NOx Phase 5 or Lean-burn combustor

Advanced turbine materials

Advanced high OPR cycles with adaptive cooling

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Vision 20 – open rotor 24

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Potential Game Changers

Pressure Gain Combustion

Engine – Airframe Optimisation

Advanced Cycles

Integrated electrical systems

Adaptive cycles

Open rotor

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©2012 Rolls-Royce plcThe 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.