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2022 Full Year Results | Rolls-Royce

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2022 Full Year Results

Improved profit and cash in 2022; transformation programme underway to create a high-performing, growing and competitive business

  • Improved orders, revenue, profit and cash flow in 2022
    • Strong new order wins in Civil Aerospace and Defence and a record order book in Power Systems
    • Underlying operating profit of £652m, £238m higher than the prior year, with the increase driven by Civil Aerospace and Power Systems
    • Free cash flow from continuing operations of £505m, £2.0bn higher than prior year, led by engine flying hour recovery
    • Net debt of £3.3bn, down from £5.2bn at end 2021, due to disposals and improved cash flow
  • Focused on delivering significant performance improvement in 2023 and beyond
    • Transformation programme in place to deliver further performance improvements from 2023, informed by rigorous benchmarking
    • Underlying operating profit guidance of £0.8-£1.0bn and free cash flow of £0.6-£0.8bn in 2023; includes early benefits from transformation
    • Strategic review underway to identify investment priorities; medium-term financial targets to be set in the second half of 2023

2022 Full year group financial performance

Underlying Revenue
£12,691m

Underlying operating profit
£652m

Underlying profit before taxation
£206m

Free cash flow from operating activities
£505m

Net debt
£(3.3)bn

Liquidity
£8.1bn

Underlying revenue by business in 2022

color x y actual prefix postfix
#004990 Civil aerospace 45     %
#009ec5 Defence 29     %
#356eb5 Power Systems 26     %

Tufan Erginbilgic, Chief Executive

“It is an honour to lead Rolls-Royce, one of the world’s most trusted brands and a business with strong positions in growing markets. Our people take tremendous pride in our innovation and engineering solutions. Together, we must now move at pace and harness that pride to create a high-performing, growing and competitive business.

While our performance improved in 2022, we are capable of much more. Our transformation programme will improve our efficiency and commercial outcomes, and deliver a sustainable reduction in working capital. This will require a winning culture, underpinned by more effective performance management and a shared determination to deliver cash and reduce debt. Our success will enable us to reward investors for their support and invest in future growth.

Our transformation programme is already underway and is moving at pace. It will include a strategic review so that we can prioritise our investment towards the most profitable opportunities. We will report the findings together with our medium-term goals in the second half of this year.”

2022 Full Year Results Press Release 
pdf – 581KB
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2022 Full Year Results Presentation 
pdf – 3.7MB
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2022 Full Year Results Appendices 
pdf – 1.0MB
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