2023 Rolls-Royce Civil Aerospace and Power Systems Performance Overview

Transactional foreign exchange % cover of forecast net US$ income £/$ exchange rate Rolls-Royce hedges transactional FX Transactional exposure arises when revenue currencies differ from cost currencies 100% Achieved rate is not typically affected by short-term spot rate movements unless new cover is taken; this impact is usually diluted 80% . $16 billion GBP:USD hedge book (average rate £/$1.54) • $2 billion EUR:USD hedge book (average rate €/$1.17) 60% • Each 1 $ cent change in the £/US$ hedge rate impacts pre-tax cash by c£20-30m 1.6 1.5 1.4 40% 1.3 USD hedge book cash costs of closing out over-hedge positions Costs are included in Group FCF definition 20% 1.2 Total cash outflow 2020 to 2026 £1,674m, of which £1,174m already paid H1 H2 2025- £m 2020 2021 2022 2023 2023 2024 2026 0% 1.1 2023 2024 2025 2026 2027 2028 Cash cost 186 452 326 210 179 146 175 1% Hedged 1% Unhedged -Blended rate (RHS) -Market rate (RHS) ROLLS R ROYCE Page 42 © 2023 Rolls-Royce

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