Controls & Data Services Smart Network Smarter Choices 13th May 2015

CDS Site Strategy Our objective is to become the world’s best provider of power system controls and intelligence CDS is also well placed to address other markets through Rolls-Royce Relocation of the Birmingham sites to a green field location provides the following benefits: Integrated manufacturing and office facilities fit for the next 30+ years Flexible Co-location of engineering activities based on programme need rather than product or functional specialisations A platform to accelerate performance improvement The flexibility to accommodate growth and new markets Shaftmoor Lane was put up in 1938 The museum pieces were built in a place that should now be a museum piece itself The products of the future should be built in a factory of the future But this is also about changing the way we work, our responsiveness, and enabling us to continue to grow For our current book of business, efficiency improvements would mean the company will shrink In order to maintain growth, we need to do other things, and the building is an enabler of that Our site investment will enable improvements in performance and inspire confidence in those who will make the decisions about our future business

Birmingham Business Park Location Five miles from current sites Improved access to infrastructure Combines product design, development and qualification with manufacturing and support activity in one bespoke building Provides opportunity for future growth Birmingham Business Park Shaftmoor Lane York Road We are in this for the long term Our board approved the purchase of the expansion land to provide us flexibility to protect the investment against some of what the future might bring This is our investment and it needs to reflect everything that AEC is and is endeavoring to become The building is bespoke, so we don’t want others to be holding our risk Hence the decision to take the design to stage E This isn’t just another part of the RR estate

Accommodation Summary Integrated facility providing 28,000m2 space: 35% Manufacturing – 9,800m2: Electronics Manufacturing – 2,700m2 Hydro-mechanical Manufacturing – 3,700m2 Hydro-mechanical Production Test – 650m2 Standards Room – 200m2 Chemical processing & Heat treatment – 900m2 Office space (ground floor) – 1,600m2 36% Research and Development – 10,000m2: Engineering test – 2,900m2 Office space (first floor) – 6,800m2 Materials Laboratory – 400m2 29% Shared – 8,200m2: Office space (first floor) – 1,300m2 Amenity space – 1,600m2 Circulation space – 2,500m2 Plant space – 1,200m2 Support & storage areas – 1,500m2 Ground Floor First Floor Roof

Planning Obligation Objective: To minimise the number of car trips and overall vehicle mileage by promoting use of alternative travel modes and minimising car dependency. Aims: Encourage alternative travel behaviour Provide information on how to travel by more sustainable transport modes Reduce the need for car use Improve access and travel choice for staff Improve staff health and reduce absenteeism Make staff journeys to work easier and cheaper

Master Programme 2011 - 2012 2013 2014 2015 Location announced J F M A S O N D J F M A S O N D J F M A S O N D Location announced July ‘11 Planning Approval 23 May ‘12 Construction Building Construction Move Travel Employee Survey March ‘11 March ‘14 March ‘15 Travel roadshows Jan ‘14 Feb ‘14 BikeRight! – Dr Bike BikeRight! – Led rides BikeRight! – learn to ride Local Travel Providers 6

Key Elements Centro BikeRight! Local travel providers Clear aim ~1350 employees transfer to CDS Solihull Known audience Engineering Company – detail! Defined timescale Complete move by Dec 2015 Responsibility and Authority Personnel ownership of travel Clear ownership of Travel Plan Support Smart Network, Smarter Choices Centro BikeRight! Local travel providers

Resources Micro-site Emails Posters Company e-mag Travel Information Events Bicycle User Group Change Champions Smart Network smarter choices

Successes Reason for Travel Planning Travel Roadshows Face-to-face planning Maps Leaflets BikeRight! activities Led rides Dr Bike sessions Training Weekend events Annual surveys and analysis Micro-site including Journey Planner Support from Executive

Challenges Detailed focus workforce when not all the answers are available Keeping people engaged Maintaining energy and ownership Ensuring service linked up Understanding which elements of public transport can be influenced

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