2023 Rolls-Royce Civil Aerospace and Power Systems Performance Overview

FY 2023 guidance Operating profit Free cash flow from continuing operations Significant profit items: **Civil targeted contract improvements Significant cash flow items: LTSA creditor growth Net OE engine concession payments Over-hedge costs Disruption due to supplier fires Legal judgement Civil Aerospace drivers: Total engine deliveries Large LTSA EFH as % of 2019 New* 2023 guidance £1.2bn - £1.4bn £0.9bn £1.Obn - Guidance at FY 2022 £0.8bn - £1.Obn £0.6bn - £0.8bn £200m - £250m £100m - £200m - £1.0bn £1.2bn c£(200)m £500m £700m c£(200)m £(389)m c£(100)m £(389)m £(150)m £(100)m 400-500 80% - 90% 1,200 - 1,300 400-500 80%-90% 1,200 - 1,300 Total shop visits Other guidance: Interest paid (FY 2022: £(352)m) Cash tax (FY 2022: £(174)m) Pensions in excess of PBT charge (FY 2022: £(32)m) c£25m - £75m lower - £(160)m (£190)m Broadly stable c£25m - £75m lower £(160)m (£190)m Broadly stable Divisional guidance • • • • Civil Aerospace operating profit in the second half is expected to be broadly similar to the first half (H1 2023: £405m) Defence revenue growth in FY 2023 is expected to be modest vs 2022 (H1 2023: +15%) Defence cash conversion is expected to be better in the second half (H1 2023: 29%) Power Systems operating profit margin in FY 2023 is expected to be higher than FY 2022 (FY 2022:8.4%) Power Systems cash conversion expected to be better in the second half (H1 2023: 18%) ROLLS R ROYCE *As disclosed on 26 July 2023 ** Civil targeted contract improvements includes contract catch ups and onerous contract improvements Page 41 © 2023 Rolls-Royce

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