Financial Performance and Guidance
CAPTURING PERFORMANCE IMPROVEMENT OPPORTUNITIES
Key drivers of operating profit improvements
Defence operating profit improvements (£bn)
14-16%
Operating margin mid-term target
VOLUME & MIX
■
Moving from legacy to new, funded programmes
Profitable aftermarket volume growth
■
2022
Volume & mix Commercial Investment
Cost
optimisation prioritisation management
Mid-term
22%
Increase in
AE shop visits
ROLLS
R
ROYCE
COMMERCIAL OPTIMISATION
☐
Mitigating external impacts with regular contractual
updates enabling value recognition & risk mitigation
All
Material contracts
renew in medium term
INVESTMENT PRIORITISATION
■
◉
Prioritising spend for strategic markets
Pursuing customer-funded programmes
COST MANAGEMENT
Simplifying the organisation
• Managing efficiencies across the business
150%
Increase in
customer-funded R&D
30%
Improvement
in TCC/GM
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