Capturing Performance Improvement Opportunities
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
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)
2023 guidance
£1.2bn - £1.4bn
£0.9bn £1.Obn
-
£200m - £250m
£1.0bn £1.2bn
c₤(200)m
£(389)m
£(150)m
£(100)m
400 - 500
80% - 90%
1,200 - 1,300
c£25m - £75m lower
£(160)m (£190)m
Broadly stable
Guidance at FY 2022
-
£0.8bn £1.Obn
£0.6bn -£0.8bn
£100m - £200m
£500m £700m
c₤(200)m
£(389)m
c₤(100)m
400-500
80% - 90%
1,200 - 1,300
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%)
* Civil targeted contract improvements includes contract catch ups and onerous contract improvements
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