6 December 2012
Rolls-Royce reports to the SFO
Rolls-Royce, the global power systems company, has passed information to the Serious Fraud Office (SFO) relating to concerns about bribery and corruption involving intermediaries in overseas markets.
This follows a request for information from the SFO about allegations of malpractice in Indonesia and China. Investigations by Rolls-Royce have identified matters of concern in these, and in other overseas markets.
The consequence of these disclosures will be decided by the regulatory authorities. It is too early to predict the outcomes, but these could include the prosecution of individuals and of the company. We will cooperate fully.
Rolls-Royce has significantly strengthened its compliance procedures in recent years, including a new Global Ethics Code and a new Intermediaries Policy. It has also expanded the Compliance function. As a further measure, Rolls-Royce will appoint an independent senior figure who will lead a review of current procedures and report to the Ethics Committee of the Board.
John Rishton, Rolls-Royce Chief Executive, said:
"I want to make it crystal clear that neither I nor the Board will tolerate improper business conduct of any sort and will take all necessary action to ensure compliance. This is a company with exceptional prospects and I will not accept any behaviour that undermines its future success".
Notes to Editors:
1. Rolls-Royce is a world-leading provider of power systems and services for
use on land, at sea and in the air, and has established a strong position
in global markets - civil aerospace, defence aerospace, marine and energy.
2. As a result of this strategy, Rolls-Royce has a broad customer base
comprising more than 500 airlines, 4,000 corporate and utility aircraft and
helicopter operators, 160 armed forces, more than 4,000 marine customers,
including 70 navies, and energy customers in more than 80 countries.
3. Annual underlying revenues were £11.3 billion in 2011, of which more than
half came from the provision of services. The firm and announced order book
stood at £62.2 billion at 31 December 2011, providing visibility of future
levels of activity.
4. Rolls-Royce employs over 40,000 people in offices, manufacturing and
service facilities in over 50 countries. Over 11,000 of these employees are
5. In 2011, Rolls-Royce invested £908 million on research and development, two
thirds of which had the objective of further improving the environmental
performance of its products, in particular reducing emissions.
6. Rolls-Royce supports a global network of 28 University Technology Centres,
which connect the company's engineers with the forefront of scientific
7. The Group has a strong commitment to apprentice and graduate recruitment
and to further developing employee skills.
For further information, please contact:
Media relations: Investor relations:
Josh Rosenstock Simon Goodson
Director of External Communications Director of Investor Relations Rolls-Royce plc
Tel: +44 (0)20 7227 9163 Tel: +44 (0)20 7227 9237