Capturing Performance Improvement Opportunities
Translational foreign exchange
The impact of translational foreign exchange is driven by period average spot rates
Period average rates
2023 Hồ
2022 H1
USD
1.23
1.31
EUR
1.14
1.19
•
Exposure
Underlying revenue
impact
Underlying operating
profit impact
·
2023 vs. 2022 £m
Revenue/Profit Including FX
FX
Including FX
FX
Group
6,950
155
673
17
Civil Aerospace
USD, EUR
3,257
26
405
5
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
Translational impact of 0.01 unit of currency
change in half-year period average rates
Defence
USD, EUR
1,913
60
261
7
Power Systems
EUR, USD
1,774
69
125
6
Revenue
New Markets
EUR, USD
1
(78)
(1)
USD
£9 million
Profit
£2 million
Other Businesses
Corporate and Inter-segment
EUR
5
(5)
EUR
£19 million
£1 million
(35)
ROLLS
R
ROYCE
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