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Lawrie Haynes, President - Land & Sea

Introduction to Land & Sea

21 October 2014

© 2014 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc. This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies.

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• +1bn people by 2025 • +30% demand for primary energy by 2025

• Global climate changes remain a major issue

• 58% urbanised by 2025 • 90% of increase in

energy demand from emerging economies

• Reductions in Marine emissions.

Mega trends drive our growth

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• Marine: strong position based on new technology in growth markets

• Nuclear: Skills and technologies key scarce

• Land: key products in advanced and emerging economies

Positioned to exploit these mega trends

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“ …for use on land or water or in the air.”*

* from Rolls-Royce Ltd. Memorandum & Articles of Association 1904

Group Rolls-Royce Complex power systems & services group

Aerospace Divisions

Defence Aerospace

Civil Aerospace Businesses

Reciprocating engines Power Nuclear Gas turbines

LiftFan, engine controls, propulsion, deck machinery, I&C

Aftermarket services

Systems

Services

Land & Sea

Power Systems 11,500 people

Marine 6,500

people

Nuclear 3,600

people

Land & Sea within the Group

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Land & Sea Strategy

Continuous Improvement

Leadership in Reciprocating

Engine Technology

Develop Medium Speed Engine Reach

Develop Propulsion &

Deck Machinery

Customer – Innovation – Profitable Growth

Group Strategy

Land & Sea Priorities

RRPS Integration

Capital allocation

Customer satisfaction

Geographic Reach

Land & Sea Enablers

Cash Cost Customer Concentration 4Cs

Systems Integration &

Intelligent Capabilities

Four priorities and five enablers – aligned with Group Strategy

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Privileged and confidential - prepared at the request of outside counsel

Marine Power Systems Nuclear

• Specialist in high speed engines, medium speed engines and power systems

• Strong in Land & Sea

• Global spares & services footprint

• World leading marine equipment portfolio

• Integrated systems

• Environmental solutions

• Global spares & services footprint

• Technical Authority for UK Nuclear Steam Raising Plant

• World-leader in safety I&C

• Plant lifetime management services

• Design and manufacture of high integrity nuclear systems and components

Land & Sea today

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Support functions

Manufacturing

Marine Systems

Services

Engineering and R&D

• Comprehensive product offering to Naval and Offshore customers

• Optimized footprint and better global capabilities

• Maximise knowledge and capabilities; prioritise investment decisions

• Lean manufacturing & optimized footprint

• Continual improvements and driving efficiencies

Land & Sea Creating value

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Group Revenue Land & Sea Revenue Employees 2003: £5.6bn 2013: £15.5bn

2013: Group: 55,000

Land & Sea 27%

Land & Sea 41%

2003

2013

Land & Sea 38%

Reciprocating engines 20%

Marine equipment

11% Nuclear 7%

Gas Turbines

62%

Aero & Energy

62%

Aerospace 73%

Aerospace 59%

2013: £5.5bn

Land & Sea Increasingly significant

11% CAGR

Power Systems

52% Marine

36%

Nuclear 12%

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Privileged and confidential - prepared at the request of outside counsel

Summary Reach more customers, in more markets, with more products, more effectively

Short term market issues

Strong, long-term growth driven by mega trends

Strong technology portfolio for future markets

Significant and complementary to Group

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Privileged and confidential - prepared at the request of outside counsel

Video

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Rolls-Royce Power Systems AG

Injection Systems

Complete Drive and Propulsion Systems

up to 10,000 kW

Diesel Gensets up to 3,250 kW

Gas Gensets up to 2,530 kW

High-speed Engines Components

Diesel and Gas Engines

up to 9,620 kW

Distributed Energy Systems

Medium Speed Engines

Bergen Engines AS

Diesel Gensets for Nuclear Power Plants up to 8,300 kW

Power Systems Products and brands

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Propulsion & Power Generation

Marine Power Generation

Construction & Agriculture

Governmental/ Naval

Rail, Mining, Oil & Gas

Power Systems Portfolio and applications

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Power Systems Portfolio and applications

Energy Solutions L’Orange

Nuclear Medium Speed Reciprocating Engines Injection Systems

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£ 2.8bn revenue by type: £2.8bn revenue by market:

Over 11,500 employees 31.12.13

OE 71%

Services 29%

Marine 35%

Energy 27%

Industrial 26%

Defence / Other 12%

Germany 8,251

Europe (exc.

Germany) 1,437

USA 960

Asia 884

Power Systems By 2013 key figures