Good day and thank you for standing by. Welcome to the Rolls-Royce 2021 half-year results conference call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star and one on your telephone. If you require any further assistance, please press star and zero. Please be advised that today's conference is being recorded. I would now like to turn the conference over to our presenter today, Isabel Green, Head of Investor Relations. Please go ahead. Hello, welcome everyone to our 2021 half-year results presentation. With me here today are Warren East, CEO, and Panos Kakoullis, our recently appointed CFO. Warren will begin today's presentation with an overview of our first half performance before handing over to Panos for a more detailed review of our financial results. Warren will conclude with an update as we look out to the future. In all, this should take less than 40 minutes, leaving time at the end for your questions. Before we begin, please take note of the safe harbor statement on slide two. This results presentation contains forward-looking statements that involve risk and uncertainty, which may cause the actual results to differ materially. The full set of results materials can be downloaded from the investor relations section of our website. Thank you, over to you, Warren. Thank you, Isabel. Hello, everyone, and thank you for joining us for our virtual half-year results presentation. As Isabel mentioned, I'm very pleased to be joined today by our new CFO, Panos Kakoullis. Panos joined us in May, bringing with him a wealth of financial experience from over 30 years at Deloitte. We're delighted to have you on board, Panos. Since our full-year results, we've also appointed a new Chair, Anita Frew, who joined the board a month ago and will succeed Sir Ian Davis on the 1st of October. Anita is an experienced Chair with in-depth experience from two decades of board appointments, both in the U.K. and internationally. We look forward to utilizing her skills for the benefit of the group. I'd also like to take this opportunity to thank Sir Ian Davis for his outstanding contribution and dedication to Rolls-Royce, and his stamina. We wish him the very best for the future. This half, we also appointed Mike Manley as non-executive director, and he joined the board from the 1st of July. Mike has led businesses in the automotive sector in Europe, Asia, and the U.S., and we value what his capability and experience will bring to us. This half, however, has not only been busy in terms of board appointments, it's also been a great chance to get out on the road again. Here on the slide are a couple of examples. In late May, we opened our new testbed in Derby. Testbed 80 is the world's largest and smartest indoor aerospace testbed and covers both production and experimental testing requirements. It was a major milestone for us. It's essentially a scientific instrument that's about the size of a cathedral with the most advanced testing technology we've ever used. We were delighted to have the Right Honorable Kwasi Kwarteng, Secretary of State for the Department for Business, Energy and Industrial Strategy, to join us for the opening ceremony. I also recently joined U.K. rail operator Chiltern Railways as they celebrated their 25th anniversary, and they chose that event for the first journey on the public rail network for their new HybridFLEX train. That was the result of a joint project that we've undertaken with Porterbrook, the U.K.'s largest owner of passenger rolling stock, to bring hybrid trains to the U.K. network. The HybridFLEX uses our mtu Hybrid PowerPack, and Jens Gutschke, with me in the picture, is our engineer who's been babysitting it through several months of final trials and testing. This is just one of many examples of how our technology is playing a pivotal role in the transition to net zero. We were absolutely delighted to be part of the groundbreaking team alongside Chiltern Railways and Porterbrook. That HybridFLEX is due to begin regular services in September. Moving on and looking at our first half highlights. We've seen good progress and improvements in many areas across the group, and we're delivering on our commitments. Business performance is in line with our expectations and guidance, and we're moving forward with new business opportunities for future growth. In civil aerospace, we've made excellent progress with the restructuring program, and I'll go into that in a bit more depth in a moment. Business aviation had a strong performance, with flying activity returning to levels that we last saw in 2019, and that's also been the case for our large engines that are operated on domestic routes in both the U.S. and China. In defense, there has been demand for technology-led solutions with the U.S. Department of Defense and the U.K. Ministry of Defence remaining completely committed to serious modernization and decarbonization of their fleets. In power systems, we've seen a recovery in our order intake and book-to-bill ratio, with orders up 19% year-on-year, led by demand improvements in all our markets, but particularly in marine, governmental, and power generation. In June, we went public with our net zero pathway, and we announced targets which set out our plan to develop new technologies, accelerate the take-up of sustainable fuels, and drive step-change improvements in fuel efficiency. As well as decarbonizing our existing businesses, we're making disciplined investments in some exciting and potentially very significant new growth opportunities to lead the way to net zero power with our innovation and engineering excellence and grow the civil aero business into sub-sectors that are new for us. Turning to the next slide, let's have a quick update on the progress that we've made on the restructuring program we announced 15 months ago. That's been focused on our civil aerospace business. We committed to a reduction of at least 9,000 roles across the group. To date, we've removed around 8,000, and we remain confident of reaching our target. That will be a reduction in civil aero of about a third of management roles, with commensurate reductions across staff functions, engineering, and manufacturing. Our footprint rationalization is progressing well. We launched our last large engine for assembly in Singapore as we consolidate that activity here in the U.K. We've moved equipment from Crosspointe in the U.S., ahead of closing that facility, the machines were already up and running in Derby and contributing to improved productivity there. When complete, we will have consolidated 11 sites down to six, delivering productivity and operational cost benefits. That builds on our investments in efficiency that we made previously and we continued to roll out during 2020. All in all, we're now achieving significant reductions in cycle times and overall productivity improvements. With CapEx reductions as well and operational cost improvements, we therefore remain on track to deliver cash cost savings of at least GBP 1 billion in 2021, and over GBP 1.3 billion of sustainable run rate savings by the end of 2022. Now moving on to the next slide to summarize what this means for our financial performance. We've had a solid start to the year with improving cash flows and profits as expected. Our business split is looking more evenly balanced. Our underlying operating profit increased significantly at GBP 307 million, and our free cash flow, though still in negative territory, was also markedly improved to just under GBP 1.2 billion of cash outflow for the half as we transition towards positive cash generation. Our restructuring program is delivering results, as I said a moment ago, we expect to achieve over GBP 1 billion in savings versus 2019 this year. This also makes us a leaner organization with a lower break-even and much better operational gearing as growth resumes. Our disposal program is also progressing well towards our target of at least GBP 2 billion in proceeds. With GBP 7.5 billion of liquidity and no maturities before 2024, we're confident our position is strong and not dependent on the pace of civil aerospace recovery. In addition, of course, we expect to generate funds as we execute on our disposals activity. I'll now hand over to Panos f or a more detailed review of our results. Good morning, everybody, and thank you, Warren. I'm delighted to be here taking you all through my first set of results. I'm very excited to have joined Warren and the rest of the Rolls-Royce leadership team in helping the business achieve its true potential in the coming years. What attracted me most is the opportunity to help fulfill that potential by very clearly delivering on the commitments we have made, by building a balanced, profitable, and cash generative business, by getting the balance sheet back into good shape, and by helping capture the demand and upside created by the energy transition. Let's just move on to the numbers. Our half-year results, which we presented here on an underlying basis for the continuing businesses in the group, well, they show a solid start to the year. Our restructuring program is very much on track and has helped to drive our return to profit in the period. Underlying revenue, that stayed steady, only 2% lower than the first half of 2020. We've seen a much more balanced contribution from across the business units. Last year, the first quarter was relatively unaffected by the emerging pandemic, and as you'd expect, provides a challenging comparative, whilst the second quarter last year was severely impacted. In fact, April 2020 was the low point for industry flying hours. This half year has been much less volatile, despite some continued uncertainty with gradual recovery across the period. Operating profit was GBP 307 million. This reflected the significant cost savings from the restructuring program that was largely focused on civil aerospace. We've also benefited from some favorable timing and the mix of activity in both defense and power systems. In addition, last year's underlying operating loss of GBP 1.6 billion included GBP 1.2 billion of one-off charges in civil aerospace, mostly related to the impact of COVID-19. In the first half, we've incurred GBP 174 million of financing costs. This primarily reflects the interest charges and facility fees on the debt and facilities that we secure to underpin our robust GBP 7.5 billion liquidity position. That liquidity provides us with the confidence in our ability to withstand ongoing uncertainties around the pace of recovery in international travel. Financing costs in the prior period, well, they included a GBP 1.5 billion one-off charge on closing the over-hedge position. Turning now to civil aerospace. We've seen an overall improvement in performance driven by the significant cost actions we've taken. In addition, we're seeing a recovery in business aviation and domestic flying activity, where our engine flying hours have returned to 2019 levels during the period. Large engine long-term service agreement flying hours were 43% of the 2019 level, up from 34% in the second half of 2020. This gradual upwards trend is still constrained by ongoing international travel restrictions and the uneven progress of vaccination programs around the world. During the period, we completed 284 large engine shop visits, 92 of which were major overhauls. Demand for new aircraft is expected to follow once existing fleets are well-utilized. We delivered 100 large engines and 48 business jet engines in the first half, broadly in line with expectations. Civil revenue is GBP 2.2 billion, some 13% lower than the comparative period. We returned to operating profit at GBP 39 million. We continue to focus very heavily on the areas within our control and are seeing substantial, sustainable cost benefits from our restructuring program. We are well on the way to reducing the size of our civil aerospace business cost base by around a third. Our defense business, which is set out on the next slide, continues to perform well. Revenue of GBP 1.7 billion is up 17% year-on-year. Operating profit is at GBP 269 million, up from GBP 210 million in the first half of 2020. We've seen continued demand and improved operational performance. This is driven by the continued resilience of our submarines business, coupled with early delivery of spare engines and higher spare parts sales. That mix, which delivers better margins, has historically been more second half weighted. That favorable timing and mix in the first half is expected to result in a stronger first half versus second half performance. Our full-year expectations for broadly flat revenue and profit in defense are unchanged. We have a strong order book, giving us confidence in that outlook, with more than 70% cover for our expected sales in 2022. In power systems, which we set out on the next slide, revenues were broadly stable in the first half, with an increase in services offset by a reduction in OE deliveries. Operating profit was GBP 41 million, up from GBP 33 million in the first half of 2020. We've seen a rise in higher margin aftermarket spare parts, partly offset by low factory utilization on OE manufacturing. Now, the other point of note here is that order intake was up 19% to GBP 1.4 billion. This is led by improved demand across all of our end markets, with particular focus in marine, governmental, and power generation. Most of that recovery in OE order intake is expected to be realized as revenue over the next six to 12 months. We're also seeing interest in lower carbon solutions growing, and we continue to wisely focus our R&D investment on these products. Turning to the next slide, we've set out our funds flow. We saw a GBP 1.2 billion cash outflow in the period from our continuing operations, which is a significant improvement on the GBP 2.9 billion outflow last period. Just to help you understand it a little bit better, we've grouped this movement into three buckets. Firstly, we saw a trading improvement of around GBP 1 billion. This looks through some of the noise of non-cash items and was driven by a fundamental improvement in EBITDA, thanks in large part to our cost savings. Our capital expenditure was lower, too, in line with planned spend as part of the restructuring. Secondly, our working capital outflow was GBP 1.2 billion better than the first half of last year. This was mostly due to the non-repeat of the unwind of invoice factoring. Our concession balance fell by GBP 239 million, which was lower than we planned for, due to third-party deliveries moving out. Our strong liquidity positions means we are not sensitive to the precise timing of the unwinding of these delayed concessions. Thirdly, and finally, there are around GBP 500 million of other headwinds year-over-year. Payments relating to the cash cost of closing out the over-hedge position in 2020 increased, in line with our previous disclosures. You can see the detail of that in our supplementary slides. Interest and facility fees increased as guided, with higher average debt and committed fees on facilities that strengthen our liquidity position. Pension cash costs were higher due to a one-off catch-up on a payment that was deferred from last year. Our free cash flow is continuing to improve. The combination of restructuring and recovering end markets is putting us on track to get back to positive cash generation. We remain confident we can deliver on our guidance for around GBP 2 billion outflow for the current year. Turning now to our balance sheet on the next slide. We ended the period with net debt before leases of GBP 3.1 billion, and we expect to end the year around GBP 4 billion. To rebuild our balance sheet and get back to an investment-grade credit profile in the medium term, we are very focused on executing on our disposals program, together with tightly managed operational improvements in driving positive free cash generation from the business. A strong balance sheet is important to us. We will balance the pace of that rebuild with the investment opportunities across our portfolio to make sure that we maximize long-term return for our shareholders. Our liquidity position is strong at GBP 7.5 billion. That is after repaying the EUR 750 million bond and the GBP 300 million COVID Corporate Financing Facility in the period. We've recently extended the 2022 GBP 1 billion unutilized loan facility to 2024. That means all of our debt maturities extend to at least 2024. We're confident in our liquidity position. It's strong, and we're not dependent on the pace of civil aerospace recovery. The disposals program is progressing well, and we continue to target proceeds of at least GBP 2 billion. We can't say much in detail here because of the ongoing processes, but we are having very constructive discussions and expect to achieve proceeds within the next 18 months. Early this year, our announced agreement to sell Bergen Engines was interrupted. We're now back on track, and you'll have seen the agreement that was announced yesterday. We're focused on getting the right results for our shareholders, and we will continue to do so in a measured way. We have plenty of liquidity, and there are no near-term pressures as we rebuild the balance sheet. We will focus on making sure that we achieve the right value for our investors. Moving on to outlook. We've made a good start to 2021, and our guidance for the full year is unchanged. We continue to expect to turn free cash flow positive sometime during the second half of this year. We also expect a full-year free cash outflow of around GBP 2 billion, which would represent an improvement of over GBP 2 billion on 2020. This outlook was supported by continued resilience in defense, growth in order intake in power systems, a gradual recovery in civil aerospace, and our actions to drive down costs. As previously highlighted in our full-year results in March, our guidance does, of course, remain sensitive to the timing of OE concession outflows on already-delivered wide-body engines. Looking further ahead, we are confident that when border restrictions are lifted, the recovery of international travel will accelerate. The recovery we are already seeing in domestic and business aviation is encouraging. Free cash flow of at least GBP 750 million is still achievable in a 12-month period when engine flying hours exceed 80% of 2019 levels. Given the uncertain pace of recovery in international travel, and looking at industry forecasts, it is unlikely that this will occur in 2022. We have a clear pathway back to a net cash position in the medium term. We have plenty of liquidity to manage the uncertain pace of the recovery in engine flying hours in the meantime. We're positive on the near-term opportunities in both defense and power systems, the opportunities in our new areas of business, Electricals and SMRs. We will remain agile in our response to external factors and continue to deliver on our restructuring, rebuilding our balance sheet, and investing in our future. Before I hand back to Warren, let me just give you two minutes on what I'm very much focused on going forward. I've very clearly heard three things in meeting our investors. One, make sure you deliver on the near-term commitments you've made. Two, simplify financial reporting. Make it easier for us to understand the business. Three, set achievable targets for the medium term, and then achieve them or even beat them. Here are my clear priorities, which I'm going to keep returning to and reporting against. We need to deliver on our commitments. Right now, the focus for me is to realize the sustainable savings from our restructuring program, making sure the costs go out and stay out. That gives us a clear route to rebuilding our financial position. Last year, that was a very challenging one for Rolls-Royce. We were well supported by our investors, lenders, and the UKEF. As a result, we have around GBP 3 billion of net debt today. That is too high. We will reduce it over the coming years. Secondly, we need to simplify. We need to break down the complexity in our financial communication. There is progress to be made in having a more straightforward way of explaining the finances in our business. I've taken some steps already to reduce the complexities. There is more to come. Finally, as we look in setting those targets, we look to the future. We're going to continue to wisely invest in that future. We're at an exciting juncture with huge opportunity to lead our markets in the journey to net zero. We also have the opportunity to take our innovation and technology into new markets with incremental growth. We won't stop investing in our current products. There are good near-term returns available from increasing durability and efficiency. Three things. Deliver on the commitments, simplify how we report, and invest wisely. With that, I'll hand back to Warren. Thank you, Panos, for the clarity there on our half-year results, and thank you for the insight into the priorities that we've been discussing. I'm now going to turn to the future and the opportunities to further progress our business. As many of you know, in June, we launched our net-zero pathway and targets, and although we operate in some of the hardest areas of the global economy to decarbonize, we showed our commitment to playing a fundamental role in meeting the challenge of climate change. That doesn't mean that we're stepping away from our traditional markets, rather that we're applying our engineering expertise and technology to find innovative and more sustainable solutions, which enable our customers to do things like continue flying without damaging the environment. At the same time, those solutions can generate additional growth opportunities for our business. On the left-hand side, you can see how a focused range of our interrelated technologies is applicable to decarbonize the complex critical systems in which we operate within a broad categories of energy, transport, and the built environment, though there's not time today to discuss that part of the slide in depth. The main graphic demonstrates our technology pathway to net zero in three broad categories. With fuel efficiencies, new technologies, and sustainable fuels, we can make a huge difference to Scope 3 greenhouse gas emissions by 2050. On the right-hand side, you can see compatibility with sustainable fuels plays a central role as we outline some of our net zero targets and commitments. These are also reflected in our remuneration policy. By 2023, we aim for all of our in-production commercial aero engines and our most popular diesel engines to be compatible with sustainable fuels. By 2030, for all of our new products to be compatible with net zero operation. In our power systems business, we aim to achieve a 35% reduction in lifetime emissions of new products sold. By 2050, our ambition is for all of our products to be compatible with net zero operation. These are not simple goals. These will require collaboration across our businesses within Rolls-Royce, as well as within a growing and evolving ecosystem. Looking to the future. Looking to our future strategy, it is about enhancing profitability in our existing businesses and developing growth opportunities triggered and enabled by the energy transition. The foundation is our large installed base. We're driving value in our existing portfolio through product enhancements that increase the efficiency of our products, so delivering more value to the customer, and also increasing durability. In our civil business, for instance, leading to increased time on wing, and therefore increased profitability of our Long-Term Service Agreements. In civil aerospace, we're now entering a lower investment phase as our engine programs mature. Now our focus is on further productivity and efficiency gains, for instance, with increased use of digital technology. Meanwhile, we're ensuring compatibility of our civil and business aviation engines with sustainable aviation fuels, and our UltraFan architecture will deliver a further step change in efficiency, making it easier for our customers to adopt the more expensive SAFs in the long run. In power systems, we have a loyal customer base with replacement cycles that are regular and relatively predictable, and that gives us a great opportunity to work with those customers as we convert together, driving penetration of greener technology based around hydrogen, hybrid, and pure electric solutions. We're also exploring ways to expand our network further into newer growth regions globally. In defense, our products have long lifespans, which require us to provide upgrades and aftermarket services. We're also making investments in adjacent opportunities to expand our product portfolio further and, as mentioned at the full-year results, we estimate over GBP 7 billion of lifetime value from tenders that are related to the B-52 re-engining program and the U.S. Department of Defense Future Vertical Lift program. We're also working with our defense customers on compatibility with sustainable fuels and opportunities for new and greener solutions. Now, the energy transition also creates opportunity for new business. In Rolls-Royce Electrical, we're focused on the electrification of aviation. For us, that's about applying new technology to a market that we know very well indeed. For instance, safety and weight considerations, of which we have a thorough and deep understanding, are absolutely paramount. This offers some of the most exciting and innovative areas for growth outside of our current portfolio. We now have over 300 engineers working in our aerospace electrical business, a fourfold increase over the last two years. Since we last updated you at the full-year results, we've made excellent progress on the development of our all-electric propulsion systems for smaller aircraft. Our commercial contract with Vertical Aerospace, left-hand picture on the slide, is progressing very well around their eVTOL vehicle. They recently announced pre-orders for 1,000 aircraft with a potential value of over $4 billion. Vertical also recently announced their intention to list on the New York Stock Exchange. In another sub-sector, we announced a collaboration with Tecnam and Widerøe to cover the development and delivery of the zero-emissions P-Volt commuter aircraft. That's the middle picture on the slide. Targeting an entry into service in the middle of the decade. We're also now testing a 2.5 MW power generation system for use in hybrid electric propulsion. We saw a picture of that generator also on the front cover of this presentation. We'll talk more about Rolls-Royce Electrical, and for that matter, SMRs, with our full-year results, reflecting the way that we create focus on these areas internally, in line with normal requirements for segmental reporting. It's not just about developing new technology for markets we know well. The energy transition is also an opportunity to take technology we know well and apply it to new markets in pursuit of growth, and that's what we're doing with SMRs. Turning to SMRs or small modular reactors. It's not just about developing new technology for markets we know well. The energy transition is also an opportunity to take technology that we know very well and apply it to new markets in pursuit of growth, and that's what we're doing with SMRs. Firstly, it's important to note that as with Rolls-Royce Electrical, any SMR revenue generated will be additive to the current portfolio. The reason why we see so much potential in SMRs is because they are affordable for both on-grid and off-grid applications, providing zero carbon, non-intermittent electricity. They're also scalable to create large quantities of zero carbon power in a reasonable timeframe, and it's increasingly clear that the world needs large-scale practical solutions fast. It's important to note that this isn't just about electricity for the grid. SMRs are ideal for the production of zero carbon hydrogen, synthetic aviation fuel, and other sustainable fuels, further enabling the production of clean energy for a range of different sectors and applications. As countries around the world seek to comply with their legally binding carbon abatement targets, the stable supply of low-cost power becomes incredibly important. Our SMRs fit that need perfectly, creating a substantial global opportunity, even though our initial efforts, highlighted here in the timeline on the slide, are focused on a U.K. grid-based application. We're particularly excited just now as we're in the process of forming a special-purpose vehicle to take the program forward into the next stage of its development, and we intend to enter the U.K. regulatory process this calendar year. We'll step through the regulatory and policy processes in tandem, we'll be targeting first power to the U.K. grid around 2030, with export orders following shortly thereafter. Let's summarize. I'll reiterate some of the key points for a takeaway. First and foremost, we're delivering on our financial priorities. Our restructuring is on track and delivering the results that we expected. Our disposal program is also progressing well towards our target of at least GBP 2 billion in proceeds. Our cash flow and profitability are both showing significant improvement, they're on track for our 2021 guidance. We have the strong liquidity and clear pathway needed to get back to net positive cash and an investment grade profile. Furthermore, as we look forwards towards a low carbon future, we will play a leading role in the transition to net zero carbon emissions by 2050. That is through both decarbonization of our existing businesses and through multiple exciting growth opportunities for incremental business. With that, I’d like to thank you all for listening. Thank you. Ladies and gentlemen, just a reminder, if you wish to ask a question, please press star and one on your telephone keypad. If you wish to cancel your request, please press the hash key. Once again, it is star and one if you wish to ask a question. The first question comes from the line from Andrew Gollan from Berenberg. Your line is now open. Oh, hi. Thanks. Good morning, everyone. Welcome Panos. Two questions, please. First one's on the concession payments issue. What is the expected benefit to free cash flow this year from the deferred payments from the Trent 1000? Compared to your assumption when you first guided to a free cash outflow of GBP 2 billion. I guess effectively, is it just an offset to the lower than hoped engine flying hours? That's the first question. Second question on fleet exposure. Pre-COVID, can you say what the percentage of engine flying hours were from Asia Pacific, ex-China? Given the slow progress of vaccinations there, what are your expectations for flight hours in that region in 2022, please? Thank you. Yeah. Okay. Do you want to go with the concession payments. Yeah Panos. I will do. Thank you. Thanks, Warren, and morning, everybody. Delighted to be here for my first set of results. I guess, Andrew, what I would say when I look at full year guidance, and one of the things that struck me as I came into the business was this is a very broad-based group with three businesses in it, and there are a number of variables, both some in our control and some not in our control when we look at that full year guidance. We've reiterated the GBP 2 billion outflow this year. There are definitely some ups and downs within that. You've mentioned concessions. There are some concessions that could go out, and there are indeed some that could come back in. There is some variability there. There is, I guess, a hedge within that around recovery in engine flying hours as well. When I look across the whole group, we're comfortable in reiterating that guidance for this year. When I look at each of the variables, particularly the ones that are in our control, we've highlighted the benefits that we're getting from the cost measures and the restructuring that we've already taken within the group. In terms of fleet exposure around those details, one thing I'd highlight, and you've talked about China in particular, we have seen a recovery in domestic flying hours back to 2019 levels, and we know a significant part of that comes from Chinese domestic flights. Yeah, I think the answer on the regional piece is that, yes, we do have an exposure in Asia, and our big customers, Cathay and Singapore are clearly facing reduction compared with where they were pre-COVID. As Panos says, we can see the underlying demand in that region from the domestic travel in China. It is just a question of how quickly borders can open, and that's a question of how quickly vaccination rates can get to a level to have significant proportions of the population vaccinated. Clearly that's one of the contributory factors to what we're seeing as a very slow and gradual improvement in our overall engine flying hours. To answer specifically around the proportions then, it's approximately 20% of our 2019 levels of engine flying hours that are exposed to international flights in that part of the world. Thanks. If I could just follow up quickly on the concession payments answer. If we simply break it down, at one point we were talking around a target of GBP 750 million free cash flow at 80% engine flying hours. If we assume a sensitivity of GBP 300 million or so per 10 points. If we take a step down on the engine flying hours assumption of 10 or 20 points, say, and then add in a headwind from concession payments catching up, does that indicate a scenario that we could be closer to break-even free cash flow in 2022, or is that just too simplistic? I think it's a bit too granular. No. We're on a clear trajectory here. Last year's cash outflow we know was over GBP 4 billion. This year we're sticking to a cash outflow of around GBP 2 billion. We are sticking with our comments of going through to reaching cash positive at some stage during the second half of this year. We'll be coming out with some specific guidance on cash for 2022 when we do our full year results. We absolutely expect to be in positive cash territory by some margin. Okay, great. That's very helpful. Thank you. Thank you. The next question comes from the line from Robert Stallard from Vertical Research. Your line is now open. Thanks so much. Good morning. Good morning. A couple from me. Obviously been a lot of reports of older aircraft being retired and their engines being retired as well. I was wondering if you'd seen any impact, as a result of parking out of older wide body aircraft in the first half that was any different from what you saw in the second half of last year. On the business jet side, the Gulfstream G700 with the Pearl engine, are you seeing any additional challenges in getting that engine certified? Thank you. Well, no particular changes to the patterns that we've seen on retirements of older aircraft in the first half of this year versus what we saw in the second half of last year, really. As far as our fleet's concerned, obviously this impacts things like the RB211s and the Trent 800s. We've got specifics around Trent 900s on 380s, where some of those much larger aircraft have been parked. I think the thing looking forward for us is how quickly the A330s that have been parked return to service. If we look there, we were coming into the pandemic, the de facto market leader in terms of share, and that had been a relatively recent, sort of last five to eight years phenomenon. Therefore our engines are significantly newer, so we would expect that the younger engines on the Rolls-Royce powered A330s are the ones that will be favored when those A330s go back into service. On the Gulfstream and the new program that we're doing there are no particular extra challenges with certifying that engine at the moment. Okay. That's very helpful. Thank you. Thank you. The next question comes from the line from Jeremy Bragg from Redburn. Your line is now open. Good morning, gentlemen. Couple of questions, please. First one on the break-even rate for engine flight hours for free cash flow. Sorry, I'll put that a bit better. You're aiming to break-even from a free cash flow perspective at some point in the second half of this year, and would you be able to state the engine flight hours required to do that, please? Second question on engine flight hours again. When do you think you will return to 2019 levels, roughly? That's obviously the net of retirements and deliveries. I guess where I'm going here is you've taken a third of costs out structurally in civil. I'm just kind of curious to sort of see your view of when that recovery point is, please. The third question, if I may please, around R&D. I note that you're spending 75% of gross R&D on sustainable technologies from now. Have you revised your assumptions on the self-funded R&D that you might spend over the next few years, please? Do you still think there is a route to market for UltraFan, given the lack of any new wide body platforms? Thank you. Yeah. Right. Panos is going to have a go at the first question, and I'll deal with the others. Let me pick up on your first question around break-even, Jeremy. I think as I mentioned earlier on, that there are a number of ups and downs and variables that contribute to our results. Engine flyouts, as you rightly pointed out, is one of them. That's not one that's within our control. When we reiterated the guidance for this year, that GBP 2 billion outflow and that positive at some point within the second half, we do look at all of those variables, the impact of the restructuring, some of the headwinds that we had in the first half of this year, which we've called out. When I put all of those in the mix, that's how we get confident that we will get through that break-even rate this year. In terms of the forecast going forward, when do we get to 2019 levels, there are a lot of industry forecasts out there that we can look at, you can look at. Rather than just us adding our own, I'd encourage everyone to look at what the wider industry forecasts are. Okay. On that, though, Panos, sorry to interrupt. Sure. We can look at the industry forecast, but you've always been quite assertive in the past that you've got a younger and better position fleet than the industry on average. I'm guessing you must have your own separate view on that, please. We do, and I think you can look historically how we have tracked against those industry forecasts, and I wouldn't expect us to be out of line with those industry forecasts. Okay. Thank you. Yeah. Industry forecasts are not very different from our own expectations of getting back to 2019 levels. I think we've been fairly consistent that is some way off, probably in the sort of 2024, maybe even 2025 timeframe, we will see a pickup when international travel opens. The demand that we're seeing where it has opened is a good indicator that there's plenty of demand there. We can't be any more clairvoyant than anyone else. It's a few years away before we get back to 2019 levels. That's an indication of the changed behavior that everybody talks about around travel. On R&D, there's no big change to the absolute quantum that we've talked about before. I think what you are seeing in some of our commentary, though, is a tilt towards net zero and lower carbon. An intention to push that up over the next several years to be 75% of our R&D investments and CapEx investments. That is a process that we're going through at the moment, fairly disciplined capital allocation over the next five-year period. Thank you. Well, I think that's about it really on the answer. Thanks very much, both. Thank you. Thank you. The next question comes from the line from Ben Heelan from the Bank of America. Your line is now open. Yes, morning. Thanks for taking my question. I had two. The first one, you highlighted you're making good progress on the disposals, and you said there's not much incremental you can give on those processes. I was wondering if you could give any indication about how you think about the impact to that GBP 750 million of targeted free cash flow when you finally have disposed of those businesses. That would be the first question. The second question, back on the concessions point, because at the very beginning of the year, we were expecting a massive outflow, in particular from 787 concessions. I think, Panos, you mentioned about GBP 300 million outflow in H1. Are you expecting an outflow on 787 concessions in the second half of the year? Thank you. I think your first question was around disposals and the impact of those disposals on free cash flow. It's not a significant impact. You can see actually within our announcement where ITP is stripped out, so you can see that it's not a significant number. In terms of the concession payments, we are dependent on airframer deliveries. As you know that there are some well-documented uncertainties around that. We do still expect to see an outflow. Some could move out, some could move earlier. We took those into consideration when we looked at full year outturn on the GBP 2 billion outflow. Okay. Thank you. Thank you. The next question comes from the line from David Perry, from JP Morgan. Your line is now open. Yes. Hello, Panos. I have two questions for you, if that's okay. First one is sort of philosophical on the balance sheet, which you've mentioned you want to improve, and you mentioned specifically that GBP 3 billion of net debt is too high. That's a very narrow definition of your net debt. It excludes operating leases and a lot of other financial liabilities that may or may not be treated as debt in your eyes. I'd just be interested in how you see the balance sheet in the round. As a second part of that question, if the ITP disposal happens, what you think the next steps are, whether they can be wholly organic or other external actions might be needed. My second question please is, you talked about wanting to simplify financial reporting. I think your three predecessors all had the same ambition as well. My view is probably the business model is just too complex. The question for you is, are you comfortable with the LTSA business model? Do you think Rolls needs to move away from that to achieve your goal of more simplified reporting? Thank you very much. Thank you, David. I think on balance sheet, you heard in the comments that I made earlier on, an ambition that we have in the medium term to get back to investment-grade credit profile. Lots of liquidity at present, so that GBP 7.5 billion of liquidity that we've got at the moment means that we can do that in a measured way, and make sure that we invest wisely at the same time, just to pick up on one of Warren's comments earlier on. I recognize the point around other liabilities in the balance sheet. You consider all of those in the round when you're looking at getting back to that investment-grade credit profile. I think also it's going to be important as we look at the shape of the business going forward, and as a more balanced business going forward, that the gearing within the business may well look different to how it's looked in the past. That's another consideration that you need to have. I think in terms of your second point around ITP disposal, I'd reiterate the point around liquidity. Liquidity is there. There is plenty of liquidity. We're not dependent on engine flying hours recovering. I don't see the need for any other non-organic, I think, measures. In terms of financial reporting, and your point around the business model, I'm comfortable with the business model. It's a smart business model. In fact, many businesses that I've worked with in the past would love to have a business model where you have your customers being effectively so sticky, and then you can work hard on making sure you deliver at a sensible cost. I think your comment there was, does that contribute to the complexity of financial reporting? No. I think spending time, and I have spent a lot of time now understanding the underlying business drivers. The underlying business drivers are straightforward once I spent some time. It's now how we make sure we translate that into a way that the outside world can understand in a more straightforward way. Well, good luck with it, and I look forward to meeting you next week. Thank you. Thank you. The next question comes from the line from George Zhao from Bernstein. Your line is now open. Hi. Good morning, everyone. Good morning. We talk a lot about engine flying hours. I want to focus on, I guess, on pricing. On flight hour contracts, compared to the start of the year, have you seen any major changes in the trends around these prices when engines change hands or when new contracts are signed? Second question, a quick one. What proportion of the large engines are deployed on domestic routes today, and do you think that's sustainable? Yeah. Engine or long-term service agreement pricing. Our basic pricing model hasn't changed. Clearly, we have been engaged during this time where airlines have been restructuring, filing for bankruptcy and coming out of bankruptcy, restructuring this. There's been new contracts to strike. I would say there's been a mix there, where we have, and I think we mentioned this at previous results. We have been working with customers to accommodate some of their short-term financial challenges in the normal way of a commercial negotiation that generally involves something on the other side. That might manifest itself in terms of a period of lower per hour rates at given types of usage of an engine, compensated by higher rates a little way down the road. Sort of normal warp and weft of commercial negotiations have happened there. In terms of a normally moving from one owner to a second owner, then the principle that we quite often secure higher rates on that transition, that's actually held up remarkably well during this period. On your second question about domestic and large engines used on domestic, we have two areas. North America, we have some older engines that are used domestically. In China, we see a lot of wide bodies used domestically. Then case by case, different airlines have parts of their fleet with wide body engines used domestically. Japan's a good example of that with both ANA and JAL. All in all, domestic use was about 10% of our total pre-COVID number in 2019. Obviously, it's a bit greater now as the traditional long-range international stuff has fallen away. I would see upward pressure because regions like China in particular and in Japan, we can see large numbers of people traveling short distances, and airlines are using large wide-body jets to do that. I think the 10% is probably a flaw, and the 20%-25% that we're seeing today is probably a bit too high for long-term sustainable, and the answer is somewhere in between. George, just something I'd probably add on the pricing point, and you can see it in the half-year numbers where we've got some long-term contract catch-ups, which are the result of some of those commercial negotiations. I'm a big believer in us being rewarded for the value that we bring, and we recognize that within the long-term contracts when we've got that value. You can see some of that upward gain around those commercial negotiations coming through there. Okay, great. Thanks. Thank you. The next question comes from the line from Chris Hallam, from Goldman Sachs. Your line is now open. Morning, everybody. Just three questions from me. Warren, perhaps first on strategy. There's no mention of hydrogen or absolutely zero on your 2050 emissions slide. That's obviously a bit different to what some of the aircraft manufacturers are saying. Is that a different view of the future? Do you expect to play a smaller role in propulsion if the industry does eventually partly transition to hydrogen? Second, perhaps for Panos on EFH payments. Can you give us an idea just on how predictable those payments are? I think most of them are done annually in relation to the coming year. How difficult is it to firm up the level of those payments, given the uncertainty on the shape of the recovery and our customers paying on time? Finally, just on free cash flow phasing. You've said you'll move to positive free cash flow at some point in H2. There's obviously a lot of seasonality in the business, but there's also the gradual EFH recovery and the savings benefits is kicking in. Should we be assuming that H1 next year is better than H2 this year, and then H2 2022 is better than H1 2022? Chris, let me just answer your first question. I also have a go at that second one. I think the simple answer is hydrogen's included in inverted commas, new technologies on that slide. I did mention in the presentation that we haven't really got time this morning to discuss that slide in a lot of detail. There is a huge amount of detail behind that slide. Hydrogen will play its part in lots of different sectors. It's probably less likely to play a part in long-distance international travel than there'll be shorter distance, smaller airplane place for hydrogen to play. That's what we're currently believing. It's very much part of our piece. You should have a look at our Net Zero Report that's on the internet that we launched a few weeks ago. In your other two questions, on engine flying hour payments, no particular concerns around customers being able to pay. They're paying on time as we'd expect. In terms of the pattern of those, mostly the payments are based on hours flown. Occasionally, some are paid based on shop visits. That is relatively predictable, subject to engine flying hours actually being flown, as we said earlier on. In terms of your seasonality point, you're right. We maintain cash flow positive as we go through the second half of this year at some point. When you're looking at next year, think of that upward trend continuing for the course of the whole year. The full year impact of the restructuring benefits coming through, the GBP 1.3 billion run rate we've talked about, the recovery in engine flying hours, power systems. We've called out the increase in the order book. That starts turning into revenue and then cash as you go through next year. Defense remains resilient. The underlying seasonality that you refer to that you've seen over past years, you should expect that to remain with the second half of the year being the more positive compared to the first half of the year. Okay. Very helpful. Thank you. Thank you. The next question comes from the line from Andrew Humphrey from Morgan Stanley. Your line is now open. Hello. Good morning, and thanks for taking my question. I've got a couple, if I may. One is on civil aerospace profitability in the first six months. Panos, you mentioned positive contract catch-ups in the period, but it also looked to me as though the underlying performance, the clean performance on civil aero gross profitability was stronger than maybe was reflected in consensus. I wanted to ask if there was anything specific in the mix, either in terms of engines coming in for service or in terms of customers that would flatter that in this period. Secondly, maybe one for Warren. We've obviously had confirmation of an A350 freighter entry into service 2025. I wanted to ask you about how you're assessing the opportunity there in terms of any additional capacity you may need to make available. Let me pick up on the civil aerospace profitability. Nothing specific in the mix to call out there around the underlying. The other point I'm sort of curious about is around contract catch-ups. Sometimes when I see commentary on them, they're sort of viewed as something to ignore or to overlook. The reason those contract catch-ups are there, and they're positive contract catch-ups, is twofold. One I've already mentioned. When commercial negotiations, we've been robust, and we see that being baked in as a benefit. It means the long-term contract as a whole is going to have a greater margin because of that, and this is the catch-up to recognize that. The other element that we've called out there in the is the cost savings that are now baked in. We plan for cost savings, but we don't recognize them until we are sure of them and they start to flow through. I think that particularly within business aviation, those kind of catch-ups are going through. I recognize that we're looking at a six-month period, but I tend to look at long-term contracts as long-term contracts and what's happening to the margin of those contracts over their life. Those catch-ups represent an increase in margin over life. To your question on the A350 freighter, obviously, that announcement from Airbus has been a little while coming, and we're delighted with that. It's a very welcome pull forward as far as we're concerned of growth in demand for our engines. We won't need to worry about any incremental capacity. Don't forget, we essentially have capacity for about 500 new large engines per annum, and that's the rate that we were delivering at in 2019. We've been doing some consolidation of our facilities, but it's very much a consolidation activity, and we would expect to be able to scale up again later in the decade when demand returns without having to move on and open new factories and that sort of thing because of the huge productivity improvements that have been baked in. We don't need to invest in any additional capacity, but the A350 freighter is a welcome sign. Very clear. Thank you very much. Thank you. Your next question comes from the line from Nick Cunningham from Agency Partners. Hi. Thank you very much. Yes. Having dealt with a lot of detail, perhaps, one could ask a more general question looking forward. I think thinking past the crisis, you wanted to reduce your costs to the point that Rolls-Royce became, or Rolls-Royce civil aero engines became intrinsically adequately profitable, which it hasn't been in the past. What I want to ask is, well, what would adequately profitable look like, and how would one measure that? Given what you know about your costs and future overhauls and so on, when we get to, say, 2024, 2025, we get to 100% of 2019 EFH, would you then be adequately profitable on that basis? Then a second longer-term question, slightly longer even than that. Sustainable fuel, I think, is a sort of linchpin of your plan for zero carbon and clearly very important in that it enables you to stick with your existing technologies to a great extent. What's your assumption about how competitive SAF can be relative to fossil fuel costs? Do you have to assume some tax, if you like, concessions for SAF and a carbon tax on hydrocarbon fuels in order to make that work? Thank you. Well, in terms of our ambitions for profitability in civil, we've been working on improvements in productivity in civil and cost out in civil for a while. The restructuring that we've been through the process of implementing over the last 12 months, by the way, we have a little bit further to go yet because this consolidation of 11 sites going down to six. That's not actually complete until the back end of next year and possibly even a little into 2023 for some of those sites. We're not quite done yet, the heavy lifting has been done on that. We will have, I've referred to it in the presentation as a better breakeven and better gearing as demand returns. That will, we believe, take us into a competitive zone in terms of profitability for our civil large engine business. That would be certainly in the mid-teens. As far as SAFs are concerned, looking forward to net zero, this isn't a Rolls-Royce thing. This is an industry thing. For long-distance international travel. The industry doesn't see a technology solution that's appropriate other than synthetic aviation fuel. For shorter distance, smaller aircraft, full electrification, hybrids, hydrogen, all of these sorts of alternative technologies have their role to play. In the long-distance, wide-body space, it's going to be SAF. The good news is, of course, that things like our small modular reactors are very useful in terms of zero carbon electricity because large-scale SAF production requires large-scale green electricity. That electricity can also be used for things like hydrogen, as I mentioned. The cost of SAF at scale, we believe will be approximately twice the fossil fuel equivalent that the fossil fuel has at the moment. That's a little bit of a sort of industry guess. That isn't a Rolls-Royce guess. It's an industry expectation at the moment, that's why it's important that we introduce things like the UltraFan new architecture to have a step function in efficiency to help our airline customers be able to adopt that. You might have seen some of the airlines working on their cost projections, and how they're deeming that SAF will be affordable. Nick, I'll probably just add on the first point around profitability. Coming in, I look across at a better balanced group now, and I look at defense and power systems and the opportunities there, the resilience and opportunities from energy transition, and push hard around what those margins should be to be competitive within the marketplace. I don't just look at civil. I want to make sure that we are looking across the whole business and shining a light across each of the businesses. Thank you, and very full answers, for which I'm grateful. Just to clarify on the, if you like, adequate profitability, mid-teens would apply to civil and to the group, or do you see a mix? Is there an intrinsic mix of margin across the different businesses? There's going to be a mix. Thank you. Thank you. The next question comes from the line from Harry Breach from Stifel. Your line's now open. Yes. Good morning, Warren and Panos. It's Harry Breach here. Could I possibly just ask maybe three questions if I could? Back in March, I think you guys said you were expecting large engine shop visits this year, I think about 240, and then 400 next year. I guess over the last few years, those large engine shop visits have been a key indicator for us to try and model the business. It's very helpful if we can have some sense of where they're heading. You've done 92 in the first half. I guess that leaves about 148 in the second. Is 240 still the expectation for this year and 400 next year? Maybe secondly, guys, we almost don't talk about time and materials aftermarket revenue at civil anymore. Just trying to look at the financials, it looks as if, looking at the analysis of aftermarket revenues recognized at a point in time for civil, it looks as if it was down really quite steeply. I think GBP 193 million is the number, if I've read it correctly, for the first half of 2021 versus GBP 746 million in the first half of last year. Can you help me? Maybe I've made another silly mistake, but can you help me to understand whether T&M has fallen significantly and what the sort of drivers are? Finally, Warren, I guess again, in the past pre-COVID, we used to talk about when across the portfolio, original equipment unit losses would get through break even, and obviously last year was heavily disrupted with a lot of rescheduling of production plans, and it wasn't a meaningful number. Can you give us some idea, Warren, about when you think we'll get through break even in terms of original equipment unit losses? Thank you. Okay. I think we're going to have to answer these questions quite quickly. Let me just rattle through the first couple. I think shop visits, it's obviously dependent on what happens on engine flying hours. One that's harder to predict, but a little bit of a shift to the right around that. On time and materials, you're right, the fall is there, but there are, again, less flying is going on, which means fewer of T&M type shop visits. Also V2500 is a little bit lower around that. On the OEM break-even point, yes, you're right. Disruption caused last year made it very difficult for us to continue reporting that because obviously there were large chunks of unrecovered cost. We will try to provide some guidance on that with the full-year results. Certainly, our ambitions haven't changed. It's a question of volume and of course, the restructuring will give us a significant tailwind in that regard. Thank you very much, guys. Thank you. Thank you. The next question comes from the line from Charles Armitage from Citi. Your line is now open. Good morning, thank you. Couple of quick ones. First of all, going back to Jeremy's question, wide body market flying hours will recover whenever it does. If you compare Rolls-Royce to the overall market, you've got a younger fleet, you're delivering more engines than you have compared with your market share on the fleet, and you've got fewer old engines to retire, so that should grow faster. On the other hand, you don't have the freighter exposure. Do you feel that Rolls' large engine will recover faster or slower than the wide body market as a whole? That's my first question. Yeah. Well, it's a slightly loaded question, isn't it? The answer is the correlation that we saw last year, between what's going on in the industry at large and recovery of usage of some of our engines, I think that holds going forward. It holds as far as things like our XWBs are concerned, very pleasing utilization of some of those. You're right, in terms of freighters, older aircraft. We are now seeing freighter conversions, passenger to freighter conversions going on with A330s and so on. Again, because our engines are the younger models of those aircraft, then I think there is a favorable tailwind for us. Obviously, as I said in answer to an earlier question, we're delighted with the Airbus dedicated freighter announcement. Broadly correct. We would expect to be on the positive side of a recovery trajectory. Great. Thank you. Second question is EFH pricing. As I understand it, there's a matrix dependent on how far the routes are and whether they're hot and high, et cetera. As I understand it, the stage length has come down, which would imply that the price per hour should be going up. We haven't heard anything about that. Is that one of these long-term benefiting kinds or trading short-term for the long term, or is it not coming through, or what's happening on that one? Yeah. I think intrinsically, you're absolutely correct. It's quite hard to see that coming through in the overall numbers. We'll take the point on and see if we can throw some color on that with our full year results. You're absolutely correct in terms of the principles that you outlined there. Okay. The final question is, we were sort of agonizing over this in 2019 and it seems to be rather less important in the whole scheme of things. The Trent 1000 TEN HPT, the fix was due to be certified around mid-year 2021. I saw a GBP 24 million increase in the provision. What's happening on that one? Yeah, I think, well, as we indicated at our full year results, that certification has been pushed out. We don't have that certification yet. We are expecting that certification before the end of this year. In the detail, the FAA and their relationship with Boeing, they've had a lot of other things to do, basically. Certifying our Trent 1000 blades is a bit lower down on their priorities than it was when we made our original estimates. We are confident in the parts, and we're already making the new parts to fit, when we do the overhauls, just as soon as that certification happens. We're expecting it just before the end of this year, probably. From the Rolls-Royce perspective, the technology work is done. Yep. The certification work. It's all complete. We're in the queue, as it were. Right. Lovely. Thank you very much. Thank you. Our last telephone question comes from the line from Céline Fornaro from UBS. Your line is now open. Good morning. Thank you for taking my questions. I have two, if I may. The first one would be trying to reconcile the second half of last year performance with the first half of this year performance and trying to reconcile a little bit, or maybe you could help me with that, on the profit bridge and the cash bridge. Clearly there is a strong improvement in the profit, even if I put on the side the GBP 166 million and LTSA contract recognition. We don't really see that from a cash point of view. Maybe you could help us on the moving parts, understanding what is the restructuring contribution or the flying hours, or each, and other things there. My second question would be regarding, I think the other thing you talked about. A certainly encouraging H1 performance, but how do you think you compare yourself versus other industrial businesses who have had really strong H1 results? What could you change in Power Systems there, or is it just very heavy H2 weighting? Thanks. Thanks, Céline. I think on the first one, I suggest we take that one offline, and we can take you through that outside of the call. On the second one, around Power Systems and some of the Power Systems competitors, I think you have to look in at the power categories where those competitors have seen a strong rebound in the first half. We're not actually in those power categories, which is why we haven't seen it in our Power Systems. What we have seen is a near 20% uptick in orders. We are seeing a rebound, but it's probably six months or so behind that some of those competitors have seen. Thank you, Warren. In terms of the profitability of 3.5%? Well, that is a result of a whole lot of factors. It's basically less revenue actually going through with the same cost. Obviously, because of some of those competitors, as I said, have seen the impact some six months or so ahead, then that will be reflected in higher profitability. I think you'll have seen in the past, it's a second-half weighted business. Margins we're expecting for the year are in line with our previous expectations. Thank you. Thank you, Céline. Isabel here. I've got one question that came through on the webcast just to finish up with, which is for you, Panos, and it's from Rory Smith at Investec. He's asking if we can talk a little bit more about the steps you've already taken to simplify reporting, and what you expect may change in terms of key KPIs that we produce, and how we're going to improve our reporting going forward. I think it's early days at this stage. What we've tried to do with this half is try and take a little bit out of the noise between statutory reporting and underlying reporting. You can see that's been simplified. Looking at the underlying business drivers, how do we get a better understanding of how those flow through the financials? There is more to come, particularly as we look at hedging and foreign exchange going forward. That's a bit more of a medium-term project. Thanks, Panos. Back to Warren to close the call. Thank you everyone for their questions today. Yes. Thank you, all. The quick summary to take away is that we're delivering on commitments made here. Restructuring is on track. The disposals program is going well. We are seeing significant improvements in profitability and our cash flow. Again, a continued position of strong liquidity, and that journey to net cash in the medium term. That's enabling us to have some confidence around the disciplined investments that we're making in the future in our low-carbon businesses, which will be incremental to our business as it exists today. With that, I'll finish, and we'll be back to tell you about our full-year results in due course. Thank you. That does conclude the conference for today. Thank you all for participating. You may now disconnect.