Rolls-Royce

Investor Presentation

September 2022

1 Investor Presentation

© Rolls-Royce

1

2

3

Investment case

What we do

Civil Aerospace in more detail

4 FY 2021 results and supplementary slides

1

Investment case

3 © 2022 Rolls-Royce

Improving financial performance

Underlying revenue by

business - FY 2021

New Markets

and other

businesses 3%

Power

Civil

Systems

£10.9bn

Aerospace

25%

41%

Defence 31%

4 Investor Presentation

© Rolls-Royce

Our financial perforSummaryance was severelyfinancialimpactedperformanceby the COVID-19 pandemic

  • Civil Aerospace margins and cash flows are leveraged to recovering large engine flight hours, with costs permanently rebased during COVID
  • Defence and Power Systems are well-positioned in their respective end markets to grow in 2022 and beyond
  • Supply chain and inflation challenges are being actively managed through operational and commercial discipline
  • £2bn disposal programme completed, following the sale of ITP, with an ambition to return to an investment grade credit rating
  • Positive momentum in free cash flow, which is expected to be modestly positive in 2022 versus outflows of £4.2bn in 2020 and £1.4bn in 2021

Underlying

Order

Gross R&D

operating profit

backlog

expenditure

£414m

£50.6bn

£1.2bn

All figures as at 2021 Full Year Results

Generating positive momentum

Delivering on

Improving

Investing for

growth and

financial performance was severely impacted by the

Our

COVID-19 pandemic

our

financial

sustainable

commitments

performance

value

"The positive momentum we are generating gives us confidence both in our expectations for 2022 and our future growth."

Warren East, CEO, FY 2021 results

5 Investor Presentation

© Rolls-Royce

>£1.3bn

Group cost reduction programme delivered one year early

£2bn

Debt facility repaid with

disposal proceeds

Operating profit

£bn 1

02021

2020

-1

-2

Free cash flow

£bn

0

-1 2020 2021

-2-3-4-5

£1.2bn

Gross R&D in 2021

Targeting 75% of total R&D spend on lower- carbon growth

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Rolls-Royce Holdings plc published this content on 22 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2022 14:49:06 UTC.