Capturing Performance Improvement Opportunities
WORKING CAPITAL OPTIMISATION
c.£2bn of sustainable improvements more than offset the impact of headwinds
Net Working Capital management
Disciplined working capital management
2022
Inventories
Receivables &
Payables
Portfolio
INVENTORIES
Concessions
Growth
& Other
Mid-term
c. £2bn optimisation actions
Significant improvement in Days
Inventories Outstanding
Improved demand planning and
supply chain management
Optimised buffer stock
RECEIVABLES & PAYABLES
Improvement in Days Sales Outstanding
New behaviours and tools drive improved
collections and billing
Unbilled invoice backlog cleared
CONCESSIONS
• Legacy agreements outflows
GROWTH
Modest working capital build to
support business growth
1. Net Working Capital includes inventories, receivables, payables, and contract assets and liabilities but excludes the Civil Net LTSA creditor and associated Risk and Revenue Sharing Partners prepayments for LTSA parts
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