Financial Performance and Guidance
SUMMARY FUNDS FLOW
KEY DRIVERS OF HIGHER YEAR ON YEAR FCF
Stronger operating profit across all divisions
Higher investments
Continued net LTSA balance growth
Lower working capital outflows, all three divisions
released inventory in H2
Movement in provisions reflects utilisation of
contracts loss provisions
• Reduced net interest costs
£m
Operating profit
2023
2022
Change
1,590
652
938
Operating profit from discontinued operations
86
(86)
•
Net investments¹
82
279
(197)
Movement in Civil LTSA balance, net of RRSAs
1,079
784
295
·
Working capital, excluding Civil Net LTSA
(396)
(524)
128
•
Movement in provisions
(258)
(23)
(235)
•
Settlement of excess derivatives
(389)
(326)
(63)
Net interest
Tax
Other
Free cash flow
...of which is continuing operations
(174)
(316)
142
•
(172)
(174)
2
(77)
53
(130)
1,285
491
794
1,285
505
780
1 Net investments = D&A - capital element of lease payments - capital expenditure - investment
ROLLS
R
ROYCE
2024 Rolls-Royce
26
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