Capturing Performance Improvement Opportunities

SUSTAINABLE AND GROWING FREE CASH FLOW Driven by higher operating profit and stronger balance sheet £2.8bn-£3.1bn mid-term Free Cash Flow (FCF) +£2.3bn-£2.6bn FCF growth £0.5bn £2.8bn-₤3.1bn 2022 2023 Mid-term Improvement in FCF to mid-term driven by - Operating profit growth (£1.8bn-£2.1bn) with an operating margin of 13-15% - Focused investments aligned to strategy - Civil LTSA balance growth - Disciplined working capital management - Increased cash tax costs reflecting higher profit - Lower financing costs and debt reduced - Absence of over-hedge costs © 2023 Rolls-Royce 18 Not Subject to Export Control.

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