Winning Together
Rolls-Royce is one of the most enduring and iconic brands in the world and has been at the forefront of innovation for over a century. Helping to power, protect and connect the world. Designing, building and maintaining systems that provide critical power to customers where failure is unthinkable.
We’re now ready to write our next chapter. To win together.
This site is a roadmap to guide you through how we are changing and creating growth.
Use our to explore our next chapter.
Connecting the Winning Together story
Winning together is more than just a programme. It’s about mindset and behaviours – acting as One Rolls-Royce. This mindset will enable us to out pace the competition, reach our potential and win.
Take a look at the story we are trying to create together, here.
ENGLISH
GERMAN
FRENCH
Our reality
Our plan
Our role
Our winning mindset
Winning Together visual
My StratNav
For the best experience, visit My StratNav on your desktop.
The
story
Incremental change is not enough. We need to transform our business and how we work, so we win and lead again. We have undertaken an urgent and deep-rooted refocusing of what we do and how we do it.
Being clear on the things we really care about and tightening our focus on them.
What we do - tighter focus
Spending less on products that are more durable. Maintaining the highest safety standards, being more empowered and efficient.
How we do it - smarter working
Getting tighter focus and smarter working right will put our business on a stronger financial footing – delivering improvements that increase the performance and profitability of our business. We’ll return to being a high-performing, growing, resilient and competitive Rolls-Royce.
What we achieve - better outcomes
We are in markets that are growing. In many cases our differentiated position means we are growing faster than the market. Every division has agreed strategic initiatives that define their focus areas.
Advantaged businesses and strategic initiatives
Major, sustained change to what we do and how we do it, to improve commercial performance.
We’re focusing on areas where we are well-positioned for growth. Key focus will be in business aviation and widebody within Civil Aerospace; transport, combat, submarines and micro-reactors within Defence; governmental, marine and power generation within Power Systems. We will explore partnerships that can help strengthen our market positions, bring new skills, build capability and scale in SMRs, Narrowbody and Battery Energy Storage Systems We will also take the difficult decision to exit businesses and some activities where commercial and competitive opportunities are not as strong for us. For example, in Rolls-Royce Electrical we are looking at options to exit in the short run or alternatively for the right value, reduce our position to minority with an intention to exit fully in the mid-term.
Portfolio choices and partnerships
Building a more efficient business will be vital. This means a simpler, more agile, less top-heavy organisation – plus working as one Rolls-Royce, doing things once and well. It also means Procurement securing better deals; and rigorous budgeting so we can constantly keep control of costs.
Efficiency and simplification
We will drive our transition to lower carbon, supporting our customers on their journey to net zero. For example, with SAF in Civil and Defence Aerospace, alternative fuels and battery energy storage solutions in Power Systems, and SMRs.
Lower carbon and digitally enabled
Back to top
Our world is moving fast and being shaped by the challenges of climate change, political instability, technology advancements and supply chain disruption. It’s never been more important to keep pace and adapt to a changing world. These changes come at a time when our business has underlying performance issues. Commercially, we lag behind our competitors on several fronts, lack a compelling case for investors and cannot afford to invest in the future we want or in the innovation we’d like to spearhead.
Though recent results showed how we have started to improve performance, there’s still much more to do. We are capable of so much more. The excellence and ingenuity that has shaped over 100 years of our history should help power a greater ambition for the future.
We need to do things tomorrow that we aren’t capable of doing today, with a step change in our financial performance. We need to win together, working as One Rolls-Royce, combining our global expertise and working collaboratively to increase innovation and productivity.
We have a clear vision for Rolls-Royce and the journey we need to make.
A strong Rolls-Royce is good for everyone: for customers, colleagues, investors and partners. We’ve made positive early progress on our plans to transform the company.
Now we’ve announced strategic choices that build on the foundations that transformation has started to build. To unlock the full potential of Rolls-Royce, and make us a high performing, competitive, resilient and growing business, we have framed the strategy across four areas.
The clear choices for where we invest
We will unlock the potential of Rolls-Royce by transforming and delivering across four key areas.
Achieving our transformation needs us all to act, to change and become better than we have been before. What do we mean by a winning mindset? We mean being open to your own personal growth and transformation. Seizing all opportunities to be proactive, innovative and with a relentless focus on execution. Specifically:
We need to sharpen our skills and more clearly align ourselves behind our strategic priorities; working as one team behind the same winning direction.
Unlocking our potential to help us win together
With a more efficient, accountable and stronger business, we can reinvest for growth and offer you more opportunities to learn, grow, and progress in your career. We’ll create an even more diverse and inclusive organisation where everybody can excel and be their best. Change is never easy and won’t happen overnight. But we do need to make it happen at pace.
Rolls-Royce today simply isn’t strong enough to withstand potential economic shocks and lacks the financial muscle needed to seize opportunities.
To reach our ambitions we can’t keep doing the same thing. We need a winning mindset.
We all have a role to play to transform and win together, using the following three areas to guide us.
Being more aligned and efficient in the way we work Having a performance culture and targets we are held to Having sharper commercial acumen Being more cost conscious Building the capabilities we need for the future
2
1
3
4
5
A strong Rolls-Royce is good for everyone: for customers, colleagues, investors and partners. We have made good progress, but there is a lot more to do. We’ve already started on our plan to build stronger foundations through the transformation which will set us up to deliver growth. We have announced four specific areas of focus:
We’re focusing on areas where we are well-positioned for growth. Key focus will be in business aviation and widebody within Civil Aerospace; transport, combat, submarines and micro-reactors within Defence; governmental, marine and power generation within Power Systems. We will explore partnerships that can help strengthen our market positions, bring new skills, build capability and scale in SMRs, Narrowbody and Battery Energy Storage Systems.
Building a more efficient business will be vital. This means a simpler, more agile, less top-heavy organization – plus working as one Rolls-Royce, doing things once and well. It also means Procurement securing better deals; and rigorous budgeting so we can constantly keep control of costs.
We will drive our transition to lower carbon, supporting our customers on their journey to net zero. For example, with SAF in Civil and Defence aerospace, alternative fuels and battery energy storage solutions in Power Systems, and SMRs.
Read more
We’re focusing on areas where we are well-positioned for growth. Key focus will be in business aviation and widebody within Civil Aerospace; transport, combat, submarines and micro-reactors within Defence; governmental, marine and power generation within Power Systems. We will also enter strategic partnerships to make even more of an impact in key markets. We will take the difficult decision to exit businesses and some activities where commercial and competitive opportunities are not as strong for us. For example, in Rolls-Royce Electrical we are looking at options to exit in the short run or alternatively for the right value, reduce our position to minority with an intention to exit fully in the mid-term.
What is it?
Making the most of our market-leading areas will help us grow quicker – building on our strengths. We will explore partnerships that can help strengthen our market positions, bring new skills, build capability and scale in SMRs, Narrowbody and Battery Energy Storage Systems.
How will it help us win together?
Winning together transformation
Our transformation will enable us to do things tomorrow that we cannot do today. It will create the solid foundations from which to grow. And we’ve already made a start.
We have developed clear targets to achieve our full potential. Achieving these targets will deliver a step change in our performance that will enable Rolls-Royce to become high performing, competitive, resilient, with growing profit and sustainable cash flows.
Our medium-term targets:
Our business will become:
We are focused on building greater efficiency and simplification across the organisation. With a tighter focus on cost control, procurement and the changes we are working through enable us to be a simpler, more agile organisation which realises the enterprise-wide synergies we have.
By creating a business that can re-invest for growth through simpler processes, doing things once and well.
We continue to make progress in helping to create a low carbon world. For example, from our work with sustainable aviation fuel in aerospace. Digital and Artificial Intelligence (AI) will also help us create more advanced services for our business.
We’ll use digital and AI to create a range of improvements from different service propositions for customers, through to ensuring a digitally connected workforce. Helping to reduce harmful carbon emissions is not only critical to our way of life but will also create new growth opportunities.
Power Systems
Civil Aerospace
Defence
In Civil Aerospace, we are positioned to grow ahead of the market in the widebody and Business Aviation markets with our market-leading, efficient and high-performing Trent and Pearl engine families.
What does this look like in action?
In Business Aviation the success of the Pearl engine family has been outstanding and we have a strong order book that is driving fleet growth. In Widebody we’re also positioned to grow above the market. We have a new pricing strategy for new and renewable contracts, as well as being rigorous on terms and conditions and addressing onerous contracts. Across Civil our teams will have a razor-sharp focus on improving profitability by reducing product and shop visit costs and improving Time on Wing. We are committed to playing our part in the energy transition.
Civil are also increasing market share with the new Pearl engine family – which is seen as today’s ‘engine family of choice’ in this growing market segment. By 2030 the main platforms in this market will be Rolls-Royce powered – Bombardier’s aircraft with the Pearl 15, Gulfstream with the Pearl 700, and Dassault with the Pearl 10X. In Widebody, the Trent 700 powering the A330 is Civil’s highest volume and most profitable large engine today. The team are focused on contract extensions to keep the fleet flying longer, or transitions to support transfer of ownership from one operator to another. Finally, for Time on Wing, Civil are continually investing in product development to drive durability – for example, we have been improving the coatings on HP Turbine Blades in our Trent 1000 and Trent 7000 engines to give them a longer operating life; and where we have life limited parts, we have been working hard to demonstrate additional life in our parts so that these can also stay on wing for longer, as it is often the expiry of a life limited part that drives a shop visit.
Over the last few years Defence has won key groundbreaking contracts to help set them up for the future.
There is an opportunity to improve through strong performance management, making our commercial initiatives even stronger and more efficient across Transport, Combat and Submarines.
As one example, Defence teams are leading a revolution in transforming future engine development, with the Orpheus project. Orpheus is a novel, small engine family concept, unveiled at Farnborough Air Show in 2022. In just two years, Orpheus has smashed traditional engineering boundaries throughout all stages of the development, design and build process. It has been instrumental in demonstrating we can deliver novel capability much faster than before, at lower cost and with less investment. A joint programme between Rolls-Royce and the UK’s Ministry of Defence, it is demonstrating competitively valued, small engine capability and our ability to accelerate engine development at pace for future combat applications – transforming future engine development programmes.
Lower carbon and digitally enabled business
“We have leading products in growing markets. We will unlock our full potential with operational excellence and commercial optimisation. Our strategic initiatives will secure sustainable growth and enable the energy transition.”
Dr Rob Watson, President – Civil Aerospace
“Our plan is supporting us to move to a collective mindset of focusing on execution, delivery and honouring our promises – taking the opportunities we have and growing further.”
Adam Riddle, President – Defence; Chairman & CEO – Rolls-Royce North America
Three years ago we committed to proving all our in-production Trent and Business Aviation engines can use 100% Sustainable Aviation Fuel (SAF) by the end of 2023. The fantastic news is that we have done this ahead of schedule!
High performing:
More competitive:
More resilient:
A growing business:
We will quadruple operating profit, the money that is left after paying all business costs but before tax, from the 2022 baseline – to achieve between
£2.5bn - £2.8bn
Lorem ipsum
XX
Key initiatives in each of our core businesses will focus on deepening our customer relationships, where we have competitor advantage. With a focus in widebody, business aviation, combat, transport, mobile and the stationary application of power systems.
Through deepening, and growing, our business in key areas, we’ll increase our earnings over the medium term and grow.
Our products deliver the mission critical power needs of our customers by being robust, compact and powerful. This gives us a structural advantage in areas of the market where reliability and power density are vital.
We will focus on Governmental and Marine markets, where we see the strongest demand and an opportunity for better returns from our power-dense and reliable solutions.
In addition, in power generation, we are having a tighter focus on key accounts to drive growth. We are also expanding our microgrid solutions and extending our services offering.
(mid-term target 12-14% up from 8.4% in 2022)
Operating margin is a measure of our profitability as a business. It tells us how much profit we have left after subtracting our expenses and is a good sign of a competitive and healthy business.
target to increase operating margin
4-6%
Target:
“Power Systems is strong at the core – now we combine our strengths to grow profitably and to realize our full potential. With a stronger focus on our performance and what we are best at, we support our customers all over the world successfully.”
Dr Jörg Stratmann, CEO - Rolls-Royce Power Systems AG
In Governmental, we are capturing growth with focused investment in integrated solutions and digital services. In Marine we are developing alternative fuel solutions to strengthen our synthetic fuel ready portfolio. In power generation, we are having a tighter focus on key accounts to drive growth. We are also expanding our microgrid solutions and extending our services offering. Last, but not least, our Battery Energy Storage Systems complements the Power Generation business and expands our markets towards new applications such as utility-scale storage.
One example of this is where Power Systems teams have been working with the latest technology to address a key challenge: engine longevity. After years in operation, some no longer comply with the stricter emission limits and emissions-proving test benches are hugely expensive. So, the team worked out a virtual test system. Mozart is the result. It’s a complete virtual engine testbench, including a virtual exhaust after treatment system with real metering system that simulates engine emissions. Testers can output various values at the touch of a button. Virtual engine testing of emissions is much less expensive. Now, Power Systems has comprehensive know-how for virtual engine tests and can record other measured values as well as emissions.
(up from 2.5% in 2022)
mid-term target to increase operating margin
15-17%
(mid-term target 14-16% up from 11.8% in 2022)
2-4%
We will take the difficult decision to exit businesses and some activities where commercial and competitive opportunities are not as strong for us. For example, in Rolls-Royce Electrical we are looking at options to exit in the short run or alternatively for the right value, reduce our position to minority with an intention to exit fully in the mid-term.
Narrowbody
SMR
Power Generation & Battery Storage
Widebody
Marine
Governmental
Business Aviation
Transport
Combat
Submarines
Micro-Reactors
Key investment areas for performance & growth
Partnerships
CIVIL AEROSPACE
The following areas are where we’ll invest and look for partnerships that help us perform and grow.
Power Generation
5-7%
Mobile application
3-5%
Combat & Transport
0-2%
UK & AUKUS
Take a look at more ways Power Systems are helping us win together
Take a look at more ways Civil Aerospace are helping us win together
Take a look at more ways Defence are helping us win together
(£0.65bn in 2022)
13-15%
We will expand our operating margins, a measure of profitability, to equal or better comparative performance benchmarked against our peers.
(5.1% in 2022)
16-18%
Targeting a return on capital improvement, through increasing our cash reserves, by more than 10 percentage points compared to 2022, creating a compelling investment proposition.
(up from 4.9% in 2022)
£2.8bn -£3.1bn
For sustainable cash flows we aim to grow to more than 100% conversion of our improved profits – creating more free cash flow in our business.
(up from £0.5bn in 2022)
2022-2030 annual market growth rates
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex.
X
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex.
Lorem ipsum dolor sit amet, consectetur adipiscing elit
We don’t need incremental change, we need to transform our business and change how we work together, so we can lead and succeed as a winning organisation.
Scale of transformation
At the outset of our transformation we had seven workstreams. As our work progresses some of the workstreams have already reached completion while others will evolve as we build our capabilities and make progress in our transformation.
Transformation workstreams
Our current workstreams are:
This workstream will simplify how we do business, making it run better and more efficiently, through:
changing the way we work together getting the most from our footprint getting the most from our spend.
Efficiency and Simplification
Commercial optimisation will improve the performance of our business through:
improving contract profitability enhancing our commercial approach embedding skills across our business, for example world class pricing capabilities.
Commercial Optimisation
This workstream will improve our working capital, strengthening the balance sheet and space for future investment, through:
better inventory management focus on overdue debt and payments standard payment terms.
Working Capital
We’re developing a new purpose and culture ambition through:
working with our colleagues to define what a winning culture looks like discussing our current values and behaviours that remain creating a One Rolls-Royce mindset.
Purpose and Culture
This workstream is helping to improve management of our business and people performance through:
developing an integrated approach to performance management to deliver a five-year plan keeping track of our progress on strategic initiatives to deliver on our mid-term targets helping our people reach their potential and rewarding high performance.
Performance Management
Importance of transforming
Back
We all have a role to play to transform and win together. Use the areas below to guide how you support our transformation in tandem with our values:
Improving our focus and working smarter will help to reduce our costs and return us to being a high-performing, growing, resilient and competitive business.
Focused business choices
How we lead, manage performance and reward our people is changing – we know that we need to make the most of the world-class talent we have in the business to drive a differentiated performance culture. We will benchmark our progress while also being transparent and consistent about how that progress is assessed within our business.
Achieving this level of transformation will require us to harness the commitment and passion of our people, strengthening our performance culture, our aligned teams and our capabilities across the group. We need to sharpen our skills and more clearly align ourselves behind our strategic priorities, working together as one team, pushing in the same winning direction.
Improving our ways of working
In future, we’ll work with an even more collaborative attitude, as One Rolls-Royce, to spend money where it counts and drive profitability. We’ll reduce third party costs through increased efficiency and commercial know-how. We’ve already started working like this in some areas and it’s helped us save on everything from office equipment to manufacturing services.
Part of our transformation is working out exactly what Rolls-Royce is for. Our purpose. The best way to decide this is together. We’ve started the conversation in interviews and focus groups all over the world, and now it’s time to think bigger. We’ve launched a survey to hear from you about what our purpose and culture should look like. And the conversation won’t stop there.
Purpose and culture
Execution of our plans will be more rigorously monitored and enabled. Clear strategy implementation plans will include strategic initiatives which will be owned by relevant teams. All of us will have a part to play in delivery and we will all be accountable for parts of our plan within our performance management targets.
If we follow through on these shared ambitions, we will become a high performing, competitive, resilient and growing business.
A stronger financial performance will enable us to offer our people more opportunities to upskill, reskill and progress, more learning and capability building, and better resources. It will be easier for people to move around the business, collaborate and contribute expertise on shared customer needs. We will win together as One Rolls-Royce – unlocking our potential to be greater than the sum of our parts. We need to change to achieve this transformation, but this transformation will also change us for the better.
We’ll be able to chart our own destiny. To secure our future as a primary partner to our customers in the challenges and opportunities they face. As an energising and rewarding employer. And as a business where engineering excellence translates into financial growth.
Please take part in the survey
saving from one Defence supplier through a tighter focus on negotiations
£1.6m
saved in shipping routes in Civil through smarter working
7,000 miles
£200m savings
Our new organisation will remove duplication and enable simpler, more agile ways of working with
gross 3rd party cost savings targeted over the next 5 years
£1bn
We’re living in a time of economic and political instability, with challenges across the globe and within markets we operate in. It’s never been more important to keep pace and adapt to a changing world.
Economic and political instability
The pace of technological advances has increased. It’s creating different markets and more competition for our business.
Climate and technology change
Our half year results showed how we’ve started to improve performance, but there’s still much more to do. This is where our multi-year transformation comes in: to turn us into a high performing, competitive, resilient, and growing Rolls-Royce.
Our business performance
Rolls-Royce is an enduring and iconic brand, a byword for quality, with global heritage. Our engineering excellence, deep customer relationships and long-standing partnerships with suppliers and investors allow us to meet customers’ immediate needs while also helping them tackle their long-term strategic challenges.
Strong brand and expertise
48
with strong year-on-year growth
Market-leading position
100+ years
of helping to power, protect and connect the modern world
countries
Our business:
