Investor Relations | CMD 2016

All figures are for Full Year 2015 unless otherwise stated.

Civil Aerospace – Aftermarket ValuePresenters

5% 2015 Group Revenue

H1 2016 Figure

£70.5bn

OE 67%

AM 33%

Order Book

23,200*

Overall there has been a slowdown in all major geographical markets for new aircraft orders reflecting a period of higher than normal order placement for new airframe products in recent years (principally Airbus A350 and A330neo, and Boeing 787 and 777X)

Our current share in the widebody engine market is at 31% of the installed widebody passenger fleet and is expected to reach 50% in the first half of the next decade

Long-term growth in the number of widebody aircraft in the global fleet has historically been strongly correlated to global GDP growth and disposable income

£m 2014 Underlying

Change Acquisitions &

Disposals Exchange 2015 Order book 63,229 3,800 - - 67,029 Engine deliveries 739 (27) - - 712 Underlying revenue 6,837 201 - (105) 6,933

Change +3% - -2% +1% Underlying OE revenue 3,463 (117) - (88) 3,258

Change -3% - -3% -6% Underlying services revenue 3,374 318 - (17) 3,675

Change +9% - +1% +9%Underlying gross margin 1,675 (139) - (10) 1,526Gross Margin % 24.5% -270 bps 22.0%

Commercial and administrative costs (283) (14) - 1 (296)Restructuring costs (82) 75 - - (7) Research and development costs (461) (65) - 11 (515) Joint ventures and associates 93 8 3 104

Underlying profit before financing 942 (135) - 5 812 Change -14% -14%

Underlying operating margin 13.8% -230 bps 11.7%

Business Focus

Business Aviation • Powers the fastest, the longest-range, and the largest business jets• In the past decade, our engines have powered seven new business jets into

service• Total fleet of over 3,000 aircraft

Market Dynamics

Older widebody aircraft are experiencing reduced utilisation by certain airlines, in particular Boeing 777s and the four-engined Airbus A340s

The introduction of the A330neo, announced in summer 2014, reduced Trent 700 sales ahead of the new Trent 7000 entering service in 2017 as the sole source engine for A330neo

Increasing environmental legislation and efficiency requirements drive emission and efficiency technologies

Historically, traffic growth has recovered quickly following major economic shocks

£6,655m £6,837m £6,933m

£844m £942m £812m

2013 2014 2015

Civil Aerospace Rolls-Royce powers more than 35 types of commercial aircraft and has over 13,000 engines in service around the world. Demand for our products remains robust and underpins strong performance

Airlines • Strong market position on widebody aircraft• Trent family of engines have all been either the launch engine for the airframe

for which it was designed, is the market leader on that application or both

www.rolls-royce.com www.facebook.com/RollsRoyceGroup

@RollsRoyce All figures are for Full Year 2015 unless otherwise stated.

This newsletter is for informational purposes only, it is not intended to contain any new material or non-public information relating to Rolls-Royce plc but is a summary of recent public announcements and as such may not be relied on. Nothing in this document should be construed as a profit forecast, however it may repeat certain statements that might be deemed to be forward-looking; such statements are made under the provisions of Rolls-Royce’s Safe Harbour Statement which can be found as part of our presentation materials on Rolls-Royce’s website http://www.rolls-royce.com/investors/results-centre

© Airbus S.A.S 2014

Employees Historic Revenue & Profit

Underlying Revenue

2015 Group Revenue

Revenue Breakdown

52%

£6.9bn

47% 53% AM

OE

63% 37%

Large Small &Med

LTSA* 38%

T&M 15%

OE 47%

*FY15 Average

*Long Term Service Agreement

Dominic joined Rolls-Royce as an undergraduate trainee in 1990. He has worked in many different areas of the business, including leading the development of the Trent 1000 engine for the Boeing 787. In 2013 Dominic was appointed as Chief Customer Officer of Rolls-Royce Civil Large Engines. In 2016, he was appointed as Director, Customers and Services – Civil Aerospace with responsibility for leading all sales, marketing and services delivery across our airplane manufacturers, airlines, business jet and lessor customers.

Richard joined Rolls-Royce in 1990 as a sponsored engineering undergraduate, undergoing an intensive year’s training in Derby. He successfully obtained his MBA in 2010 before running the Market Assessment team, providing strategic understanding to lead key decision-making and strategy-setting. In 2012, Richard was asked to restructure the customer-facing elements of marketing, and in 2016 he assumed responsibility for the entire Civil Aerospace marketing team.

Dominic Horwood Director, Customers and Services – Civil Aerospace

Richard Goodhead Senior Vice President, Marketing – Civil Aerospace

Civil Aerospace – Capturing Aftermarket Value • Capturing aftermarket value

and reducing costs as widebody fleet grows

• Offering choice and adapting to customer requirements across lifecycle

• Creating next generation Service Solutions

2015 2025 Rolls-Royce installed engine growth

Competitive and global Service Network

Digitally enabled services, focused on customer outcomes

Maintain engine assets

Aircraft technically available and ready to depart

Efficient sector

Optimised network and operating costs

Manage inventory and assets

Dispose of equipment

Maintenance Availability Efficiency Transitions

4% 65%

• Manage transitions to keep Trents flying

• Competitive, capable and growing Service Network

• Digitally enabling all of our services to improve customer outcomes

© Airbus S.A.S 2014

Trent Service Network Customer Service Centres Delta TechOps MRO Delivering the right Services Solutions across the product lifecycle

>7,000 engines 3,492 engines

Over 100 widebody airline customers

230 32%

530 39%

~900 ~37%

2010 Today 2020

10 24

Trent aircraft >8 years old

Trent transitions in first three quarters

TotalCare®

• Time on wing and shop visit price risk transfer

• Fully comprehensive range of service

SelectCareTM • Hybrid payment

structures• Selected services

based on airline needs

• Agreed fixed price per shop visit

Foundation Services • Pay at event• Access to

additional services • Short term cost

certainty

Digital Platform

2015 2016

World Leading Analytics

Product Knowledge

+ Efficiency

Availability

Safety

Collaboration Platform

Acco

unta

ble

Insi

ghts

Dat

a

Customer Intimacy

+