Power your future, share our success

ShareSave

“You’re personally invited to join our ShareSave plan.” Do you know that in just two easy steps, you have the power to invest in your

future and share in our success by joining our latest ShareSave plan?

Find out about ShareSave

What is ShareSave?

What is ShareSave?

ShareSave is just one part of your total reward – everything you get in return for working here, from your salary, your shares, the benefits you can receive, to how you are recognised for the work you do and your development and career opportunities.

It’s a simple plan. You can save monthly from your net pay to buy Rolls-Royce shares at a 15% discounted price.

• You save a fixed amount of between £5 and £250 per month for three or five years

• After three or five years you can use your savings to buy our shares at a price that was set at the start of the plan. This 15% discounted price is known as the ‘option price’

• Alternatively, you can take back your savings at any time

If our share price goes up – you could benefit. If our share price goes down, you get all of your savings back.

How does ShareSave work..?

ShareSave 2017Power your future - share our success

Step one – You Save

How does ShareSave work?

A few things to think about before you apply… You need to think about how much you want to save, whether to apply for our three or five year plan and how much you can afford. If you already take part in ShareSave, the £250 monthly saving maximum applies to the total of your savings across all plans. Please keep this in mind when deciding how much to save this time. Setting a limit helps us to ensure that everyone has the chance to get involved.

Even with a set limit, we can only issue a certain number of options. So if demand for ShareSave 2017 is more than we can meet, we may have to reduce your contribution on a pro-rata basis. We call this a ’scale back‘ of the plan and if we need to do it we will let you know.

You can’t change your savings amount, but you can:◦ delay making up to six monthly payments. If you do, the end date of your plan - we call this

your ‘maturity date’ - will be delayed by one month for each missed payment. If you miss more than six monthly payments you will lose the right to buy shares

◦ close your ShareSave account at any time and your savings will be returned to you. You will, however, lose the right to buy shares

• You can save between £5 and £250 per month

• You choose how long you want to save for at the start of the plan - three or five years

• Your savings are taken directly from your net pay; i.e. after income tax and national insurance contributions

How does ShareSave work?It can be explained in two simple steps:

You Save, then You Choose

Step two…

Buy our shares at the 15% discounted price set at the start of the plan (the option price).

• Whatever happens to our share price in the next three or five years, the option price will stay the same, even if the share price goes up.

• If the share price is higher than the option price at the end of the plan, you can sell your shares and take the profit, or keep them and become a shareholder.

Step two – You Choose

How does ShareSave work?

After three or five years when your plan matures you can either:

How does ShareSave work?It can be explained in two simple steps:

Take back your savings.

Remember – you can take your savings back at any point during your chosen savings period, but you will lose your right to buy shares at the Option Price.

or

You Save, then You Choose

Your savings could go a long way…

It’s great news, thanks to your hard work our share price continued to grow: Even in the event that our share price goes down, you still won’t lose out:

If you were to buy shares with your Options and then sell your shares, you’d make £552.25

In the share price falls below the option price, you can simply have your savings returned

How does ShareSave work?

Your savings could go a long wayPlease remember that current share price performance isn’t an indication of future performance and the value of shares can go down as well as up. But our examples1 below show that you can’t lose with ShareSave:

You decide to save £50 per month in the three year plan. Total savings:

£1,800

Original option price (share price -15%): £7.65

Number of options awarded: 235

Share price on 1 February 2021: £10

Gain if you were to sell them £552.25*

*minus dealing fees

Original option price (share price -15%): £7.65

Number of options awarded: 235

Share price on 1 February 2021: £7

How does ShareSave work?

1Examples assume that you make all of your payments and all share prices used above are for illustration onlyWhat your colleagues say about ShareSave…

What do your colleagues say about ShareSave?

What do your colleagues say about ShareSave?

Alison Hammond Chief Accountant – Defence

I’ve worked here since ShareSave was introduced many years ago, and have participated in every plan

that has been offered. I find it a great way to put money aside each month, knowing that at the end of the plan I will at the very least get my savings back. ShareSave has been a real benefit to me over the years – the money that I’ve made helped hugely with paying for the extension to my house when my son Ashley was born, and the savings that I’m making at the moment are for my children in the future. I’m also in the SharePurchase plan, where I buy shares from my gross pay each month. The combination of the ShareSave and SharePurchase plans have really got me interested in our company performance and share price, because I have a direct personal interest due to my investments.

I love the flexibility of the ShareSave plan, I choose how much, or how little I wish to pay depending on my

circumstances.

I consider myself to be risk averse when it comes to money and that’s the beauty of ShareSave, I am guaranteed to get back at least what I have paid in. And, when times are good there is the opportunity to make a profit from my investment.

ShareSave also provides an incentive to think about the actions I take at work – if I make the right decisions and help the company to succeed, I am helping to increase the share price.

I will definitely be enrolling for the 2017 ShareSave plan.

I joined Rolls-Royce in 2016 so this is my first chance to participate in the ShareSave plan. I’m really pleased to be

given this opportunity as I think ShareSave is a low-risk and convenient way to save an affordable amount regularly. I also think that saving in the Company I work for gives me a day-to-day link with our external financial performance: with the share price hopefully increasing over time, the Company, shareholders and I will benefit. If the share price doesn’t increase over the savings period of either three or five years, then I have the security of having my original cash amount returned to me or if it stays the same, then I will have still gained since the options I can buy in return for the cash savings are offered at a discount.

The interest rate being offered on bank or building society savings accounts or even cash ISAs is so minimal at the moment that I find this type of saving is really unattractive. Additionally, since my

ShareSave contributions will be taken directly from my net pay, I will be able to set money for the future aside without setting up another new bank account or standing order. I also know that if I need my ShareSave saved amount back in an emergency, then I can request that my cash is returned to me at any time – much better than a long notice period withdrawal bank account.

I know from other colleagues that some of the previous schemes have yielded a great return and given that it’s always a good idea to have something set aside for any future unknowns I would encourage everyone to consider participating in this great offer.

Richard Brown Trent 900

Lifecycle EngineeringGiles Bellamy

Weight Engineer

Your key dates…

or

Key dates

4 September

Invitation to joinInvitations will

be sent by email or post with details

on how to apply.

26 September

Invitation closes 5.00pm

You must make your application by

5.00pm UK time on this date.

January

First payment madeYou make your

first payment directly from your pay.

26 September

Invitation closes 5.00pm (UK time)

You must make your application by 5.00pm UK time on this date.

February

Contract start dateYour first payment

is added to your ShareSave account.

26 September

Invitation closes 5.00pm (UK time)

You must make your application by 5.00pm UK time on this date.

February

Maturity date – three year planYou will now have the choice to buy

shares or take back the money you have saved*

26 September

Invitation closes 5.00pm (UK time)

You must make your application by 5.00pm UK time on this date.

February

Maturity date – five year plan

You will now have the choice to buy

shares or take back the money you have saved*

Key datesYour window of opportunity...

*If you miss more than six payments you lose the right to buy shares.How to join ShareSave…

How do I join ShareSave?

Online 1. Visit: www.computershare.com/rollsroyceshareplans

2. Enter your SRN (included on your invitation) and PIN*

3. Follow the simple instructions

You will receive an email confirming that your application has been accepted.

*If you have never used the Computershare online service please use your date of birth in a eight digit format as your PIN (e.g. 2 June 1980 will be 02061980). You will immediately be asked to change your PIN. If you have previously used the Computershare online service but cannot remember your PIN, log onto the website using your SRN, click “Forgotten PIN?” and follow the instructions to receive a new one.

Please read the Terms and Conditions for participating in the Rolls-Royce ShareSave plan 2017. They can also be found at www.computershare.com/rollsroyceshareplans under ‘Plan Documentation’ or alternatively by calling the helpline on (0)370 8893122† to request a copy. You will be deemed to have read these documents and that you agree to all Terms and Conditions if you apply.

†Calls from a BT line will be charged at standard daytime and evening rates plus network charges. Lines are open from 8.30am - 5.30pm Monday – Friday (excluding public holidays).

How do I join ShareSave?

FAQs…

Frequently asked questions

Joining ShareSaveAm I eligible to join ShareSave? You are eligible to join if you are employed by Rolls-Royce on the 1 August 2017 and at the date when the options are granted.

Will I always be able to save the full amount that I choose? We can only issue a certain number of options. So if demand for ShareSave 2017 is more than we can meet, we might have to reduce your contribution on a pro-rata basis. We call this a ‘scale back’ of the plan. If we need to do it, we will let you know.

What will I receive after I have joined? An option certificate will be available online by the end of November confirming the number of options granted to you along with your ShareSave account number.

If you wish to miss any payments please contact rollsroyceshareplans@computershare.co.uk If you miss more than six monthly payments your option to purchase shares will lapse and Computershare will write to you to close your account and ask how you would like your savings to be returned.

Managing your ShareSave accountWhat information will I receive? Computershare will contact you using the details that are saved on your Computershare online account. Typically communications include annual ShareSave statements and instructions for when your ShareSave plan matures. It is your responsibility to keep your contact details up-to-date on the Computershare website.

What happens if I want to cancel my ShareSave plan? You can stop saving into ShareSave at any time and get back all of your savings. But remember, once you cancel, you can’t re-start ShareSave and will lose the option to buy shares.

What happens if I am unable to make a payment? If you’re unable to make a payment or if you miss a payment, don’t worry. Computershare Plan Managers will delay your maturity date (the date your savings contract comes to an end) by a month for each month missed to allow you to make the payment(s) up. The most you can miss is the equivalent of six monthly payments (these can be separate periods of one or more months or a single six month period).

FAQs

more FAQs…

Frequently asked questions

What happens if I leave the company due to…

…disability, retirement, redundancy or the company or business for which I work is sold? You can buy shares in Rolls-Royce to the value of your savings within six months of leaving. You may increase the number of shares you can buy by continuing to save during these six months unless your ShareSave matures before the end of this period.

…resignation? Your savings will be returned to you, but you will lose the opportunity to buy shares.

If you die your personal representatives would have up to 12 months following your death to use the proceeds of your ShareSave account to buy shares on behalf of your beneficiaries. Alternatively, your savings will be paid to your estate.

What happens if I take maternity or shared parental leave? You can continue to make payments into your ShareSave account by standing order during maternity or shared parental leave by making the appropriate arrangements with Computershare.

TaxWill tax have to be paid on the shares? There is normally no tax to pay when you buy the shares..

Capital gains tax might be payable if you decide to sell shares bought through a ShareSave plan – this depends on the amount of your gain and your personal financial circumstances at the time. In the 2017/2018 tax year, you are allowed to make a total gain of £11,300 before having to pay capital gains tax. This figure may change for the 2018/2019 tax year.

This is our understanding of the current tax rules. This tax information is provided for information only and does not constitute personal, financial or tax advice. If you are unsure of your circumstances, please speak to an independent financial advisor.

FAQs

Contact us…

12D6IE D04

Contact us

Contact us

We have the power

About ComputershareOur ShareSave plan is administered by Computershare plan managers. Computershare is a global provider of share plans with over 20 years’ experience in the industry. You can find out more about them at www.computershare.com or by contacting them using the details to the right.

Does this booklet tell me everything I need to know about ShareSave? This brochure is a general guide to how ShareSave works. The plan is governed by the Rolls-Royce ShareSave plan rules and, in respect of your savings contract, a prospectus (copies of which can be found online at www.computershare.com/rollsroyceshareplans under ‘Plan Documentation’).

If there are any differences between this brochure and the ShareSave Rules or applicable legislation, the ShareSave Rules and applicable legislation will take precedence. Specific provisions in ShareSave mean that you waive any claim to compensation in respect of ShareSave when you leave employment. No financial or investment advice is provided in this booklet. If you are in any doubt as to whether or not you should take part in ShareSave you should take independent advice from your own financial adviser. The value of shares may go down as well as up.

If you have any questions, please get in touch with our specialist team at Computershare.

+44(0) 370 889 3122†

rollsroyceshareplans@computershare.co.uk

www.computershare.com/rollsroyceshareplans

Computershare Plan Managers, Bridgwater Road, Bristol, BS99 6AP

†Calls from a BT line will be charged at standard daytime and evening rates plus network charges. Lines are open from 08.30 - 17.30 Monday – Friday (excluding public holidays).