Capturing Performance Improvement Opportunities
CAPTURING PERFORMANCE IMPROVEMENT OPPORTUNITIES
Key drivers of operating profit improvements
Defence operating profit improvements (£bn)
14-16%
Operating margin mid-term target
2022
Volume & mix Commercial Investment
Cost
optimisation prioritisation management
Mid-term
VOLUME & MIX
• Moving from legacy to new, funded programmes
Profitable aftermarket volume growth
22%
Increase in
AE shop visits
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
© 2023 Rolls-Royce
Not Subject to Export Control
36View entire presentation