Financial Performance and Guidance
TRANSLATIONAL FOREIGN EXCHANGE
The impact of translational foreign exchange is driven by period average spot rates
Period average rates
2023
2022
USD
1.24
1.24
EUR
1.15
1.17
ROLLS-ROYCE DOES NOT HEDGE AGAINST
THE IMPACT OF TRANSLATIONAL FX
Translational exposure varies by source of
revenues and profits
Translational FX impact is driven by period
average spot rates
Translational impact increases as rate reduces
ROLLS
R
ROYCE
Underlying revenue
Underlying operating
Exposure
impact
profit impact
2022 vs. 2021 £m
Revenue/Profit
Including FX
FX
Including FX
FX
Group
15,409
88
1,590
4
Civil Aerospace
USD, EUR
7,348
17
850
(3)
TRANSLATIONAL IMPACT OF 0.01 UNIT OF
CURRENCY CHANGE IN PERIOD AVERAGE RATES
Defence
USD, EUR
4,077
(11)
562
Revenue
Profit
Power Systems
EUR, USD
3,968
82
413
New Markets
EUR, USD
4
(160)
(2)
USD
£19 million
£4 million
Other Businesses
EUR
12
(15)
EUR
£45 million
£4 million
Corporate eliminations
(60)
1
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Not Subject to Export Control
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