A strong, resilient balance sheet
We’re positioning Rolls-Royce to better withstand volatility and external shocks, increasing our cash flow and improving our net debt to EBITDA ratio. These improvements will make our balance sheet much more resilient, with reduced gross debt and strong liquidity, leading to an investment grade profile in the near term.
Improving shareholder returns
When we are confident that the strength of our balance sheet is assured, we are committed to reinstating and growing shareholder distributions. Our current thinking is that our policy going forward will be based on an earnings payout ratio. This should result in growing shareholder distributions, consistent with our expectations of profit and cash performance.
A disciplined approach to investment
All our investment decisions are strategically aligned and are focused on driving greater value creation, prioritising the most profitable opportunities across the Group. We have strict financial criteria, with clear hurdle rates, in the mid to high teens for our three established divisions.