2023 Rolls-Royce Civil Aerospace and Power Systems Performance Overview

2023 Half Year underlying results. Underlying results £m Revenue 2023 Hi 2022 H1 6,950 5,308 Organic Change¹ 1,487 Organic Change %1 28% Gross profit 1,515 942 535 55% Gross margin % 21.8% 17.7% 3.9pts Operating profit 673 125 531 382% Operating margin % 9.7% 2.4% 7.1pts Profit/(loss) after taxation 404 (188) 575 nm £m Free cash flow £m Net debt 2023 H1 2022 H1 Change 356 (68) 424 2023 Hồ (2,845) 2022 FY Change (3,251) 406 ROLLS R All results are shown for Group continuing operations, on an underlying basis, excluding discontinued operations (ITP Aero). 1 Organic change is the measure of change at constant translational currency applying full year 2022 average rates to 2023 H1 and 2022 H1. All underlying income statement commentary is provided on an organic basis unless otherwise stated. ROYCE nm is defined as not meaningful. Improved financial results reflected continued end market growth, commercial improvements and cost efficiencies Higher operating profit, led by Civil Aerospace and Defence. Power Systems margins are expected to improve in H2 Free cash flow improved as a result of higher profit and strong growth in EFH receipts, partly offset by a working capital outflow Lower net debt reflects free cash flow improvements as we continue to drive towards to an investment grade rating Page 6 © 2023 Rolls-Royce

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