Financial Performance and Guidance

2023 FULL YEAR UNDERLYING RESULTS Underlying results £m 2023 2022 Revenue 15,409 12,691 Organic Change¹ +2,630 Organic Change %¹ RECORD RESULTS WITH STRONG 21% PERFORMANCE ACROSS THE GROUP Gross profit 3,231 2,477 +732 30% Gross margin % 21.0% 19.5% +1.4pts Operating profit 1,590 652 +933 143% COMMERCIAL OPTIMISIATION AND COST EFFICIENCIES ARE KEY PERFORMANCE DRIVERS Operating margin % 10.3% 5.1% +5.2pts Profit after taxation 1,142 158 +980 620% £m 2023 2022 Free cash flow 1,285 505 Change +780 £m Net debt 2023 2022 Change (1,952) (3,251) +1,299 £m Return on capital 2023 2022 Change 11.3% 4.9% +6.4pts All results are shown for Group continuing operations on an underlying basis, excluding discontinued operations (ITP Aero). Organic change is the measure of change at constant translational currency applying full year 2022 average rates to 2023. All underlying income statement commentary is provided on an organic basis unless otherwise stated. Record results since adoption of IFRS15 in 2017 OPERATING PROFIT AND LTSA GROWTH DROVE RECORD FREE CASH FLOW DELIVERY HIGHER MARGINS AND FOCUSED INVESTMENTS SUPPORT DOUBLE DIGIT RETURN ON CAPITAL ROLLS R ROYCE ©2024 Rolls-Royce Not Subject to Export Control 22

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